Document:

ex10_30.htm

     

     

     

    
      

      

    

    
 

    Dated the
day of December 2008

    

    

    VALlRX
PLC.

    

    

    (Vendor)

    

    and

    

    B10FIELD
CORP.

    

    

    (Purchaser)

    

    

    

     

      
        

      

    

    

    SALE OF
SHARES AGREEMENT

    

    for the
sale and purchase of shares

    

    in

    

    VALIBIO

     

      
        

      

    

    

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    THIS AGREEMENT is made on the
day of December 2008

    

    BETWEEN:

    

    
      	
              (1)

            	
              VALlRX
      PLC, the sole beneficial and legal owner of the Company whose address is
      at 24 Greville Street, London, ECIN 8SS UNITED KINGDOM ("Vendor");
      and

            

    

    

    
      	
              (2)

            	
              BIOFIELD
      CORP., a Delaware corporation having its registered office at 1615 Walnut
      Street, 3'd Floor, Philadelphia, PA 19102 the United States of America
      ("Purchaser").

            

    

    

    

    WHEREAS:

    

    
      	
              (A)

            	
              VALIBIO
      SA ("Company") is a company incorporated and existing under the laws of
      Belgium, having its principal place of business at 25 Avenue Georges
      Lemaitre, 6041 Gosselies, Belgium. As at the date hereof, the Company has
      an authorised capital divided into 625 Shares each, of which 625 Shares
      have been issued and are fully paid
up.

            

    

    

    
      	
              (B)

            	
              As
      at the date hereof, the Vendor is the beneficial owner of 623
      Shares.

            

    

    

    
      	
              (C)

            	
              The
      Vendor has agreed to sell and the Purchaser has agreed to purchase the
      Sale Shares (being all the issued Shares as at the date of this Agreement)
      subject to and in accordance with the terms and conditions hereinafter set
      out.

            

    

    

    

    NOW IT IS HEREBY AGREED as
follows:

    

    
      	
              1.

            	
              INTERPRETATION

            

    

    

    
      	
              1.01

            	
              In
      this Agreement (including the Recitals) the following words and
      expressions shall have the following meanings except where the context
      otherwise requires:

            

    

    

    

    
      	
               
      

            	
              "Business
      Day"

            	
              means
      any day (other than a Saturday or Sunday) on which banks are open for
      business in Hong Kong throughout its normal opening hours provided that
      each business day shall finish (and then the next business day commence)
      at 4:00 p.m.;

            

    

    

    
      	
               
      

            	
              “Call
      Option"

            	
              means
      the call option granted by the Vendor to the Purchaser in relation to the
      Shares of the Company held by the Vendor, the terms of which are set out
      in Clause 2.

            

    

    

    
      	
               
      

            	
              "Completion"

            	
              means
      completion of the sale and purchase of the Sale Shares as specified in
      Clause 5;

            

    

    

    
      	
               
      

            	
              "Completion
      Date"

            	
              means
      both (a) the day being no more than 30 days from the date of this
      Agreement when the Purchaser shall have paid Euro 100,000 to the Vendor,
      and (b) the day being no more than 60 days from the date of this Agreement
      when the Purchaser shall have paid in aggregate Euro 600,000 to the
      Vendor, in each case when after the conditions set out in Clause 4.01 are
      fulfilled (or such later date as the Vendor and the Purchaser may agree in
      writing prior to Completion);

            

    

     

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              "Consideration"

            	
              means
      the consideration for the transfer of the Sale Shares being the sum
      specified in Clauses 3.01;

            

    

    
      	
               
      

            	
              "Euros” or
      "E"

            	
              means
      the official currency of the European
Union;

            

    

    

    
      	
               
      

            	
              "HK$" 

            	
              means
      Hong Kong dollars;

            

    

    

    
      	
               
      

            	
              "Hong
    Kong"

            	
              means
      the Hong Kong Special Administrative Region of the People's Republic of
      China;

            

    

    

    
      	
               
      

            	
              "Sale
      Shares"

            	
              means
      63 Shares representing I0% of the allotted and issued share capital of the
      Company as of the date of this Agreement which are beneficially owned by
      the Vendor to be bought and sold pursuant to Clause
  2;

            

    

    

    
      	
               
      

            	
              "Shares"

            	
              means
      ordinary shares in the capital of the
Company;

            

    

    

    
      	
               
      

            	
              "US$"

            	
              means
      United States dollars;

            

    

    

    
      	
               
      

            	
              "Warranties"

            	
              means
      the representations, warranties and undertakings contained or referred to
      in Clause 7.01 and Schedule 2 and "Warranty" means any of the Warranties
      where the context permits.

            

    

    

    
      	
              1.02

            	
              References
      to ordinances and to statutory provisions shall be construed as references
      to those ordinances or statutory provisions as respectively amended or
      re-enacted or as their application is modified by other provisions
      (whether before or after the date hereof) from time to time and to any
      orders, regulations, instruments or subordinate legislation made under the
      relevant ordinances or statutory provisions thereof and shall include
      references to any repealed ordinance or any provisions of which they are
      re-enactments (whether with or without
  modification).

            

    

    

    
      	
              1.03

            	
              References
      to persons include references to individuals, firms, companies,
      corporations and unincorporated bodies of persons and vice
      versa.

            

    

    

    
      	
              1.04

            	
              References
      to this Agreement are to this agreement for the sale and purchase of
      shares in the Company as amended, varied, modified, novated or
      supplemented from time to time.

            

    

    

    
      	
              1.05

            	
              References
      herein to Clauses, Recitals and Schedules are to clauses and recitals in
      and the schedules to this Agreement (unless the context otherwise
      requires), references to paragraphs are, unless otherwise stated,
      references to paragraphs of the relevant Schedules and references to this
      Agreement include the Schedules and the
  Appendix.

            

    

    

    
      	
              1.06

            	
              The
      headings are inserted for convenience only and shall not affect the
      construction of this Agreement.

            

    

    

    
      	
              1.07

            	
              Unless
      the context requires otherwise, in this Agreement words importing the
      singular include the plural and vice versa and words importing a gender or
      the neuter include both genders and the
neuter.

            

    

    

    
      	
              1.08

            	
              The
      expressions the "Vendor", the "Purchaser" and the "Company" shall, where
      the context permits, include their respective successors, personal
      representatives, executors, administrators, estates and permitted
      assigns.

            

    

    

    
      	
              1.09

            	
              A
      document expressed to be "in approved terms" means a document the terms of
      which have been approved by or on behalf of the Vendor and the Purchaser
      and a copy of which has been signed for the purpose of identification by
      or on behalf of the Vendor and the
Purchaser.

            

    

     

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    

    
      	
              2

            	
              SALE AND PURCHASE OF
      SALE SHARES AND CALL OPTION

            

    

    
      	
              2.01

            	
              Subject
      to the terms of this Agreement, the Vendor shall sell as beneficial owner
      and the Purchaser shall purchase the Sale Shares free from all options,
      liens, charges, claims, agreements, equities and encumbrances and other
      third party rights of any nature whatsoever and together with all rights
      now or hereafter attaching or accruing thereto including all dividends and
      distributions declared, made or paid on or after the Completion
      Date.

            

    

    

    
      	
              2.02

            	
              In
      consideration of the Purchaser entering into and agreeing to be bound by
      this Agreement, the Vendor hereby irrevocably and unconditionally grants
      to the Purchaser the Call Option to purchase from the Vendor up to 100
      Shares from the Vendor currently representing 16% of the entire issued
      Shares of the Company on a fully diluted basis at a price per Share of (a)
      E9,600 in the event that the option is exercised on or before the first
      anniversary of this Agreement, (b) E10,560 in the event that the option is
      exercised on or before the second anniversary of this Agreement, or
      EII,616 in the event that the option is exercised on or before the third
      anniversary of this Agreement. The number of Shares available under the
      option shall be adjusted upwards or downwards as the case may be in the
      event that the Shares are consolidated or subdivided prior to the exercise
      of the option of the maximum number of Shares available under the
      option.

            

    

    

    
      	
              2.03

            	
              The
      Call Option may be exercised in whole or in part and more than once by the
      Purchaser at any time from the Completion until the date falling 3 years
      from the Completion and shall be exercisable by written notice from the
      Purchaser to the Vendor specifying the number of Shares to which such
      notice relates.

            

    

    

    
      	
              2.04

            	
              Completion
      of the sale and purchase of the Shares pursuant to the exercise of the
      Call Option shall take place within 3 Business Days of the date of the
      written notice under Clause 2.03.

            

    

    

    
      	
              2.05

            	
              On
      completion of the sale and purchase of such Shares pursuant to the
      exercise of the Call Option under Clause 2.03, the Purchaser shall
      purchase, and the Vendor shall sell, the legal and beneficial interest in
      such Shares with effect from such date free from all liens, charges,
      equities, encumbrances or third party interests together with all rights
      then or thereafter attaching thereto including but not limited to all
      dividends or distributions which may be paid, declared or made in respect
      thereof at any time on or after that
date.

            

    

    

    

    
      	
              3

            	
              CONSIDERATION

            

    

    

    
      	
              3.01

            	
              The
      total consideration payable by the Purchaser to the Vendor for the sale of
      the Sale Shares and the granting of (but not the exercise of) the Call
      Option shall be 600,000 EURO to be satisfied as to (a) Euro 100,000 within
      thirty (30) days of the date of this Agreement and as to (b) Euro 500,000
      within sixty (60) days of the date of this Agreement in cash at the times
      as specified under Clause 4.01.

            

    

    

    

    
      	
              4

            	
              CONDITIONS

            

    

    

    
      	
              4.01

            	
              Completion
      is conditional upon:

            

    

    

    
      	
               
      

            	
              (a)

            	
              the
      Purchaser and the Vendor shall enter into a Distribution Agreement
      ("Distribution Agreement") with the Vendor upon the execution of this
      Agreement in which the Vendor shall grant the exclusive distributorship
      right to the Purchaser of products and technology of the Company,
      including but not limited to the technology of HyperGenomics and
      Nucleosomics and the HPV diagnostic products, Nucleosomics diagnostic
      products and HyperGenomics diagnostic
products;

            

    

     

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (b)

            	
              the
      Vendor shall deliver or cause to be delivered to the Purchaser duly
      executed transfers of (a) 10 Sale Shares and (b) 53 Sale Shares,
      respectively by the registered holders thereof in favour of the Purchaser
      or such other person(s) as it may nominate together with the relative
      certificates within 7 days of in the case of (a) the payment of Euro
      100,000, and in the case of(b) the payment of Euro 500,000;
      and

            

    

    

    
      	
               
      

            	
              (c)

            	
              a
      Disclosure Letter in which Vendor shall disclose all the matters of the
      Company as required under this Agreement and under Schedule
    2.

            

    

    

    
      	
              4.02

            	
              The
      parties shall use their respective best endeavours to procure that the
      conditions set out in Clause 4.01 are fulfilled by 5:00 p.m. (Hong Kong
      time) on or before the date specified in Clause
  4.01.

            

    

    

    

    
      	
              5

            	
              COMPLETION

            

    

    

    
      	
               
      

            	
              5.1

            	
              Subject
      to the terms of this Agreement, Completion of 10 of the Sale Shares shall
      take place pursuant to this clause at the offices of the Purchaser on the
      Completion Date within 30 days of this Agreement, and Completion of 53 of
      the Sale Shares shall take place pursuant to this clause at the offices of
      the Purchaser within 60 days of this
Agreement.

            

    

    

    
      	
               
      

            	
              5.2

            	
              Upon
      Completion the Vendor shall:

            

    

    

    
      	
               
      

            	
              (a)

            	
              deliver
      to the Purchaser:

            

    

    

    
      	
               
      

            	
              (i)

            	
              duly
      completed and signed transfers of the numbers of Sale Shares specified in
      Clause 4.01(b) by the registered holders thereof in favour of the
      Purchaser or as it may direct together with the relative bought/sold share
      certificates;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              certificates
      in respect of the numbers of Sale Shares specified in Clause 4.01(b) in
      favour of such persons as the Purchaser shall
  direct;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              such
      waivers or consents as the Purchaser may require to enable the Purchaser
      or its nominee(s) to be registered as the holders of Sale
      Shares;

            

    

    

    

    
      	
               
      

            	
              (iv)

            	
              written
      confirmation that none of the Vendor are aware of any matter or thing
      which is in breach of or inconsistent with any of the representations,
      warranties and undertakings herein
contained;

            

    

    

    
      	
               
      

            	
              (v)

            	
              such
      other documents as may be required to give to the Purchaser good title to
      the Sale Shares and to enable the Purchaser or its nominees to become the
      registered holders thereof;

            

    

    

    
      	
               
      

            	
              (vi)

            	
              such
      other papers and documents as the Purchaser may (by notice in writing
      given not less than 5 business days prior to Completion) reasonably
      require;

            

    

    

    
      	
               
      

            	
              (b)

            	
              cause
      board meetings of the Company to be held (inter alia) at which the
      Directors shall:

            

    

    

    
      	
               
      

            	
              (i)

            	
              approve
      the transfers to the Purchaser or its nominee(s) and its registration as
      members of the Company in respect of the number of Sale Shares specified
      in Clause 4.01 (b) (subject to the production of duly stamped
      transfers);

            

    

     

     

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (ii)

            	
              upon
      payment of not less than Euro 600,000 by the Purchaser, appoint such
      person as the Purchaser may nominate to be validly appointed as an
      additional Director of the Company;

            

    

    
      	
               
      

            	
              (c)

            	
              procure
      that immediately following the board meetings referred to in sub-clause
      5.2(b) such meetings of the boards of directors of the Subsidiaries as the
      Purchaser shall require are convened to deal with such of the matters
      referred to in sub­clause 5.2(b) as the Purchaser shall
      require;

            

    

    

    
      	
              5.3

            	
              Upon
      Completion the Purchaser shall deliver to the Vendor or its Solicitors a
      banker's draft or any other means to be agreed by the Parties for the
      Consideration, such draft to be payable to or to the order of the Vendor.
      The delivery of such banker's drafts as aforesaid in the aggregate amounts
      of Euro 600,000 shall constitute a complete discharge to the Purchaser in
      respect of the Consideration to be provided by it under this Agreement and
      the Purchaser shall not be concerned further with such Consideration or to
      see that any of the Vendor actually received the
  same;

            

    

    
      	
              5.4

            	
              The
      Purchaser agrees hereby to irrevocably undertake upon following Completion
      to use its reasonable endeavours to procure discharge of the Vendor
      obligations pursuant to any indemnity given by the Vendor as security for
      the banking facilities of the
Company.

            

    

    

    
      	
              5.5

            	
              The
      Purchaser shall not be obliged to complete the purchase of any of the Sale
      Shares unless the purchase of the Sale Shares is completed in accordance
      with this Agreement. Without prejudice to any other remedies available to
      the Purchaser, if in any respect the provisions of clause 5.2 are not
      complied with by the Vendor on the Completion Date the Purchaser
      may:

            

    

    

    
      	
               
      

            	
              (a)

            	
              defer
      Completion to a date not more than 28 days after the Completion Date (and
      so that the provisions of this Clause 5.6 shall apply to Completion as so
      deferred); or

            

    

    

    
      	
               
      

            	
              (b)

            	
              proceed
      to Completion so far as practicable (without prejudice to its rights
      hereunder); or

            

    

    

    
      	
               
      

            	
              (c)

            	
              rescind
      this Agreement without prejudice to any other remedy and without incurring
      any liability to the Vendor.

            

    

    

    
      	
              5.6

            	
              The
      Vendor hereby irrevocably undertakes to the Purchaser to procure at its
      own expense the due execution of all such further documents as are
      necessary to vest in the Purchaser or the Company all such property and
      rights as are intended to be vested in it by or pursuant to this
      Agreement.

            

    

    

    

    
      	
              6.

            	
              DEFAULT

            

    

    

    
      	
              6.01

            	
              Without
      prejudice to any other remedies available to the Vendor, if in any respect
      the obligations of the Purchaser set out in Clause 4.01 are not complied
      with by the Purchaser on the Completion Date, the Vendor
    may:

            

    

    

    
      	
               
      

            	
              (a)

            	
              defer
      Completion to a date not more than 28 days after the Completion Date (and
      so that the provisions of this Clause 6.01 (a) shall apply to Completion
      as so deferred); or

            

    

    

    
      	
               
      

            	
              (b)

            	
              proceed
      to Completion so far as practicable (without prejudice to its rights
      hereunder) and to recover such damages and compensation from the Vendor by
      reason of any such breach or non-fulfilment (and failure to exercise it
      shall not constitute a waiver of any such
  rights).

            

    

    

    
      	
              6.02

            	
              Without
      prejudice to any other remedies available to the Purchaser, if in any
      respect the obligations of the Vendor set out in Clause 4.01 Ca) -!D are
      not complied with by the Vendor on the Completion Date, the Purchaser
      may:

            

    

     

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (a)

            	
              defer
      Completion to a date not more than 28 days after the Completion Date (and
      so that the provisions of this Clause 6.02Ca) shall apply to Completion as
      so deferred); or

            

    

    

    
      	
               
      

            	
              (b)

            	
              proceed
      to Completion so far as practicable (without prejudice to its rights
      hereunder) and to recover such damages and compensation from the Vendor by
      reason of any such breach or non-fulfilment (and failure to exercise it
      shall not constitute a waiver of any such
  rights).

            

    

    

    

    
      	
              7.

            	
              WARRANTIES

            

    

    

    
      	
              7.01

            	
              The
      Vendor hereby represents, warrants and undertakes to the Purchaser (to the
      intent that the provisions of this Clause shall continue to have full
      force and effect notwithstanding Completion) in the terms set out in this
      Clause and Schedule 2, and acknowledges that the Purchaser in entering
      into this Agreement is relying on such representations, warranties and
      undertakings:

            

    

    

    
      	
               
      

            	
              (a)

            	
              That
      the Vendor is and will, immediately prior to Completion, be the beneficial
      owner of the Sale Shares free and clear of any lien, charge or encumbrance
      whatsoever and the Company has not exercised any lien over any of its
      issued shares and there is outstanding no call on any of the Sale Shares
      and all of the Sale Shares are fully paid;
and

            

    

    

    
      	
               
      

            	
              (b)

            	
              That
      as at the date of this Agreement, the Sale Shares constitute 10% of the
      allotted and issued Shares.

            

    

    

    
      	
              7.02

            	
              The
      Vendor shall not (save only as may be necessary to give effect to this
      Agreement) do or allow and shall procure that no act or omission will
      occur before Completion which would constitute a material breach of any of
      the Warranties if they were given at Completion or which would make any of
      the Warranties materially inaccurate or misleading if they were so
      given.

            

    

    

    
      	
              7.03

            	
              In
      the event of it being found prior to Completion that any of the Warranties
      are materially untrue or incorrect, or in the event of any matter or thing
      arising or becoming known or being notified to the Purchaser which is
      materially inconsistent with any of the Warranties or in the event of the
      Vendor becoming unable or failing to do anything in any material respect
      required to be done by it at or before Completion, the Purchaser shall not
      be bound to complete the purchase of the Sale Shares and the Purchaser may
      by written notice rescind this Agreement without liability on its part.
      The right conferred upon the Purchaser by this Clause is in addition to
      and without prejudice to any other rights of the Purchaser (including any
      rights to claim damages or compensation from the Vendor by reason of any
      such breach or non-fulfilment) and failure to exercise it shall not
      constitute a waiver of any such
rights.

            

    

    

    
      	
              7.04

            	
              The
      Vendor hereby undertakes to indemnify and keep indemnified the Purchaser
      against any loss or liability suffered by the Purchaser as a result of or
      in connection with any breach of any of the Warranties and against any
      reasonable costs and expenses incurred in connection therewith provided
      that the indemnity contained in this Clause shall be without prejudice to
      any other rights and remedies of the Purchaser in relation to any such
      breach.

            

    

    

    
      	
              7.05

            	
              The
      liability of the Vendor for all claims under the Warranties, or otherwise
      under this Agreement when taken together shall not exceed the lower of (a)
      E600,000, or (b) the amount of the Consideration paid to the
      Vendor.

            

    

    

    
      	
              7.06

            	
              The
      Vendor shall not be liable for any claim under the Warranties, or
      otherwise under this Agreement unless, when taken together, they exceed
      E25,000, in which case the whole amount (and not just the amount by which
      the limit in this Clause 7.06 is exceeded) is recoverable by the
      Purchaser.

            

    

     

     

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    
 

    
      	
              7.07

            	
              The
      Vendor is not liable for any claim under the Warranties, or otherwise
      under this Agreement to the extent that the
  claim:

            

    

    

    
      	
               
      

            	
              (a)

            	
              Relates
      to matters disclosed in the Disclosure Letter referred to in Clause
      4.01(d);

            

    

    

    
      	
               
      

            	
              (b)

            	
              Relates
      to any matter provided for in the
Accounts;

            

    

    

    

    
      	
              8.

            	
              ANNOUNCEMENTS

            

    

    

    
      	
              8.01

            	
              Each
      of the parties hereto undertakes that prior to Completion and thereafter
      it will not (save as otherwise provided in this Agreement or as required
      by applicable laws, rules or regulations) make any announcement in
      connection with this Agreement unless the other party hereto shall have
      given its consent to such announcement which consent may not be
      unreasonably withheld or delayed and may be given either generally or in a
      specific case or cases and may be subject to
  conditions.

            

    

    

    

    
      	
              9.

            	
              COSTS

            

    

    

    
      	
              9.01

            	
              Each
      party to this Agreement shall pay its own costs and disbursements of and
      incidental to this Agreement and the sale and purchase hereby agreed to be
      made. All stamp duty payable on the transfer of the Sale Shares
      contemplated hereunder shall be borne by the parties in equal
      proportions.

            

    

    

    

    
      	
              10.

            	
              NOTICES

            

    

    

    
      	
              10.01

            	
              Each
      notice, demand, consent or other communication given or made under this
      Agreement shall be in writing and delivered or sent to the relevant party
      at its address or fax number set out below (or such other address or fax
      number as the addressee has by five days' prior written notice specified
      to the other parties):

            

    

    

    
      	
              To
      the Vendor:

            	 
      	
              ValiRX
      PLC

            
	 
      	 
      	
              24
      Greville Street

            
	 
      	 
      	
              London
      ECIN 8SS

            
	 
      	 
      	 
      
	 
      	 
      	
              Fax
      Number: +44 (0) 203 0084416

            
	 
      	 
      	
              Attention:  Chief
      Executive

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              To
      the Purchaser:

            	 
      	
              BIOFIELD
      CORP.

            
	 
      	 
      	
              1615
      Walnut Street, 3n1 Floor

            
	 
      	 
      	
              Philadelphia,
      PA 19102 USA

            
	 
      	 
      	 
      
	 
      	 
      	
              Fax
      Number:  (215) 972-6988

            
	 
      	 
      	
              Attention:  David
      Bruce Hong

            
	
              Also
      copy to:

            	 
      	
              Fax
      Number:  (852) 2549 0689

            
	
              Attention:

            	 
      	
              David
      Bruce Hong

            

    

    

    
      	
              10.02

            	
              Any
      notice, demand, consent or other communication so addressed to the
      relevant party shall be deemed to have been delivered (a) if given or made
      by letter, when actually delivered to the relevant address; and (b) if
      given or made by fax, when despatched with a confirmed transmission
      report.

            

    

    

    
      	
              10.03

            	
              All
      notices, demands, consents and other communications shall be either in the
      English language or accompanied by a certified translation thereof into
      the English language.

            

    

     

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
 

    

    
      	
              11.

            	
              TIME OF THE
      ESSENCE

            

    

    

    

    
      	
              11.01

            	
              Time
      shall be of the essence of this Agreement, both as regards the dates and
      periods specifically mentioned and as to any dates and periods which may,
      by agreement in writing between or on behalf of the Vendor and the
      Purchaser, be substituted for them.

            

    

    

    

    
      	
              12.

            	
              COUNTERPARTS

            

    

    

    
      	
              12.01

            	
              This
      Agreement may be executed in one or more counterparts each of which shall
      be binding on each party by whom or on whose behalf it is so executed, but
      which together shall constitute a single instrument. For the avoidance of
      doubt, this Agreement shall not be binding on any party hereto unless and
      until it shall have been executed by or on behalf of all persons expressed
      to be the parties hereto.

            

    

    

    

    
      	
              13.

            	
              ASSIGNMENT

            

    

    

    
      	
              13.01

            	
              This
      Agreement shall be binding upon and enure for the benefit of the estates,
      personal representatives or successors of the parties but shall not be
      assignable.

            

    

    

    

    
      	
              14.

            	
              WHOLE
      AGREEMENT

            

    

    

    
      	
              14.01

            	
              This
      Agreement (together with any documents referred to herein) constitutes the
      whole agreement between the parties hereto and it is expressly declared
      that no variations hereof shall be effective unless made in writing. The
      Purchaser hereby acknowledges that it is not entering into this Agreement
      in reliance upon any representation other than those incorporated into or
      represented by the Warranties.

            

    

    

    

    
      	
              15.

            	
              AMENDMENT

            

    

    

    
      	
              15.01

            	
              Unless
      otherwise specifically provided for in this Agreement, any provision of
      this Agreement may be amended, supplemented or waived only if the parties
      hereto agree in writing.

            

    

    

    
      	
              16.

            	
              GENERAL

            

    

    

    
      	
              16.01

            	
              The
      provisions of this Agreement including the warranties and undertakings
      herein contained insofar as the same shall not have been fully performed
      at Completion or any other requisite time shall remain in full force and
      effect notwithstanding Completion or after such requisite
      time.

            

    

    

    
      	
              16.02

            	
              Any
      right of rescission conferred upon any party hereby shall be in addition
      to and without prejudice to all other rights and remedies available to it
      and no exercise or failure to exercise such a right of rescission shall
      constitute a waiver by such party of any such other right or
      remedy.

            

    

    

    
      	
              16.03

            	
              The
      Vendor and the Purchaser shall do and execute or procure to be done and
      executed all such further acts, deeds, things and documents as may be
      necessary to give effect to the terms of this
  Agreement.

            

    

    

    
      	
              16.04

            	
              No
      failure or delay by the Vendor or the Purchaser in exercising any right,
      power or remedy under this Agreement shall operate as a waiver thereof,
      nor shall any single or partial exercise of the same preclude any further
      exercise thereof or the exercise of any other right, power or remedy.
      Without limiting the foregoing, no waiver by a party of any breach by the
      other party of any provisions hereof shall be deemed to be a waiver of any
      subsequent breach of that or any other provision hereof. If at any time
      any provision of this Agreement is or becomes illegal, invalid or
      unenforceable in any respect, the legality, validity and enforceability of
      the remaining provisions of this Agreement shall not be affected or
      impaired thereby.

            

    

    

     

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
 

    
      	
              17.

            	
              GOVERNING LAW AND
      JURISDICTION

            

    

    

    
      	
              17.01

            	
              This
      Agreement shall be governed by and construed in accordance with the laws
      of Hong Kong and the parties hereto submit to the non-exclusive
      jurisdiction of the Hong Kong courts for the purpose of determining or
      enforcing any claim arising
hereunder.

            

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    EXECUTION
on page 21. The remainder of this page intentionally left blank

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    SCHEDULE
1

    INTELLECTUAL
PROPERTIES

    

    

    
      	 
      	
              Number

            	
              Description

            	
              Particulars

            
	
              1.

            	
              W0200S/019826

            	
              Patent
      Licence

            	
              Cronos/VaJiBio

            
	
              2.

            	
              W02002GB03080

            	
              Patent
      Licence

            	
              ValiRx/VaJiBio

            

    

    

    

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
 

    

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    SCHEDULE
2

    

    REPRESENTATIONS,
WARRANTIES AND UNDERTAKINGS

    

    

    
      	
              1.

            	
              GENERAL

            

    

    

    In this
Schedule, the expression:

    

    "the
Company”                                                      means
ValiBlO SA.

    

    
      	
              2.

            	
              DISCLOSURES COMPANY RETURNS
      RECORDS AND INFORMATION
SUPPLIED

            

    

    

    
      	
              2.1

            	
              The
      particulars of the Company and the Shares contained in this Agreement are
      true and accurate in all respects.

            

    

    

    
      	
              2.2

            	
              The
      copy of the Constitution of the Company referred to in the Disclosure
      Letter is true and complete and has attached thereto a copy of every such
      resolution or agreement as is required to be attached and (save as
      aforesaid and save as regards resolutions for reorganization of the
      Company's capital passed immediately prior to the signing of this
      Agreement) neither the Company nor any class of its members has passed any
      resolution other than resolutions relating to business at Annual General
      Meetings which was not special
business.

            

    

    

    
      	
              2.3

            	
              The
      Company has complied with such of the provisions of the relevant laws as
      are or have been in force and all returns particulars resolutions and
      other documents required under any legislation to be delivered on behalf
      of the Company to the Registrar of Companies (or equivalent) or to any
      other authority whatsoever have been properly made and
      delivered.

            

    

    

    
      	
              2.4

            	
              The
      Registers of Members and other statutory books of the Company have been
      properly kept and contain a true accurate and complete record of all the
      matters which should be dealt with
therein.

            

    

    

    
      	
              2.5

            	
              All
      information contained or referred to in the Disclosure Letter is accurate
      in all respects and the Vendor is not aware of any other fact or matter
      which might reasonably affect the willingness of the Purchaser to purchase
      the Shares on the terms (including price) of this
  Agreement

            

    

    

    
      	
              2.6

            	
              All
      written information and documents concerning the Company supplied to the
      Purchaser or its solicitors or accountants by the Company or by the
      Vendor[s] are true and accurate in all
respects.

            

    

    

    

    
      	
              3.

            	
              SHARES
      AND SHARE CAPITAL

            

    

    

    
      	
              3.1

            	
              The
      Shares to be purchased by the Purchaser comprise the allotted and issued
      share capital of the Company as of the date of this Agreement and all of
      them are fully paid up.

            

    

    

    
      	
              3.2

            	
              There
      is no, nor is there any agreement or arrangement to create any pledge,
      lien, charge, encumbrance, rights of pre-emption or other equities or
      third party rights of any nature whatsoever on, over or affecting any of
      the Shares and there has been no exercise or purported exercise of or
      claim in respect thereof by any
person.

            

    

    

    
      	
              3.3

            	
              No
      person has the right to call for the issue of any share or loan capital of
      the Company under any option or other agreement or under any conversion
      rights.

            

    

    

    
      	
              3.4

            	
              The
      Company has not repaid or agreed to repay or redeem any shares of any
      class of its share capital or otherwise reduced or agreed to reduce its
      issued share capital or any class
thereof.

            

    

     

     

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    
 

    
      	
              3.5

            	
              Save
      as provided in this Agreement there are no agreements or arrangements in
      force which call for the present or future issue or allotment of, or grant
      to any person the right (whether conditional or otherwise) to call for the
      issue, allotment or transfer of any share or loan capital (including any
      option or right of pre-emption or
conversion).

            

    

    

    
      	
              3.6

            	
              The
      Company has never reduced its share capital nor capitalised or agreed to
      capitalise in the form of shares or debentures or other securities or in
      paying up any amounts unpaid on any shares debentures or other securities
      any profits or reserves of any class or description or passed or agreed to
      pass any resolution to do so .

            

    

    

    

    
      	
              4.

            	
              SUBSIDIARIES

            

    

    

    The
Company does not have and has never had at any time any subsidiaries (as defined
in Section 2 of the Companies Ordinance) other than the Subsidiaries and neither
the Company nor any Subsidiary is or has been a subsidiary of any other company
or the holder or beneficial owner of more than 50% of any class of the share or
other capital of any other company or corporation whether limited or unlimited
and whether incorporated in Belgium or elsewhere.

    

    

    
      	
              5.

            	
              NAME

            

    

    

    The
Company does not use or otherwise carry on business under any name other than
its corporate name and trade names as disclosed.

    

    

    
      	
              6.

            	
              ACCOUNTS

            

    

    

    
      	
              6.1

            	
              The
      Accounts of the Company have been prepared in accordance with the
      requirements of all relevant ordinances, regulations and statutes and on a
      consistent basis in accordance with generally accepted accounting
      principles and practices Belgium.

            

    

    

    
      	
              6.2

            	
              The
      Accounts are true and accurate in all respects and show a true and fair
      view of the assets, liabilities, capital commitments and the state of
      affairs of the Company as at the Accounts Date and the profits of the
      Company for the said period.

            

    

    

    
      	
              6.3

            	
              No
      change in the policies of accounting have been made in preparing the
      accounts of the Company for each of the last 3 financial periods of the
      Company ended on the Accounts Date, except as stated in the audited
      balance sheets and profit and loss aconites for such
  year.

            

    

    

    
      	
              6.4

            	
              The
      Accounts:

            

    

    

    
      	
               
      

            	
              (a)

            	
              are
      not qualified in any way by the Company's
  Auditors;

            

    

    

    
      	
               
      

            	
              (b)

            	
              correctly
      set forth and do not (on the basis of valuation therein adopted for the
      relevant assets) overstate the value of the assets of the Company as at
      the Accounts Date;

            

    

    

    
      	
               
      

            	
              (c)

            	
              correctly
      set forth and do not understate either the amount of the liabilities
      (including contingent liabilities) of the Company at the Accounts Date or
      the losses and tax liabilities (including deferred taxation) of the
      Company for the financial period ended on the Accounts
    Date;

            

    

    

    
      	
               
      

            	
              (d)

            	
              do
      not overstate the profits of the Company for that financial period;
      and

            

    

     

     

     

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (e)

            	
              do
      not omit any fact or matter which renders or might render the Accounts
      untrue inaccurate misleading or incomplete in any
  respect.

            

    

    

    
      	
              6.5

            	
              The
      results shown by the audited profit and loss accounts of the Company for
      each of the financial periods ended on the Accounts Date have not (save as
      therein disclosed) been affected by any unusual or non-recurring items or
      by any other circumstances rendering the profits or losses for the period
      covered therein unusually high or unusually
low.

            

    

    

    
      	
              6.6

            	
              Full
      provision or reserve has been made in the Accounts for all liabilities,
      capital and other commitments of the Company outstanding at the Accounts
      Date whether contingent quantified disputed or not or have otherwise been
      fully dealt with in the notes to the
Accounts.

            

    

    

    
      	
              6.7

            	
              The
      Accounts reserve or provide in full for all taxation for which the Company
      was at the Accounts Date liable and whether or not the Company has or may
      have any right of reimbursement against any other person and the Accounts
      reserve in full for any contingent or deferred liability to
      taxation.

            

    

    

    
      	
              6.8

            	
              The
      Accounts contain adequate reserves for depreciation and for bad and
      doubtful debts and for any losses which may arise on realisation of stock
      and work-in-progress.

            

    

    

    

    
      	
              7.

            	
              EVENTS
      SINCE ACCOUNTS DATE

            

    

    

    
      	
              7.1

            	
              Since
      the Accounts Date the Company has carried on its business in the ordinary
      and usual course and without entering into any transaction, assuming any
      liability or making any payment which is not in the ordinary course of its
      business, and without any interruption or alteration in the nature scope
      or manner of its business.

            

    

    

    
      	
              7.2

            	
              Since
      the Accounts Date there has been no adverse change or deterioration in the
      financial position or trading prospects of the
  Company.

            

    

    

    
      	
              7.3

            	
              Since
      the Accounts Date no distribution of capital or income has been declared
      made or paid in respect of any share capital of the Company and (excluding
      fluctuations in overdrawn current accounts with bankers) no loan or loan
      capital of the Company has been repaid in whole or in part nor has become
      liable to be repaid.

            

    

    

    
      	
              7.4

            	
              Since
      the Accounts Date:

            

    

    

    
      	
               
      

            	
              (a)

            	
              the
      Company has not assumed or incurred any liabilities (actual or contingent)
      or expenditure otherwise than in the ordinary course of carrying-on its
      day-to-day business;

            

    

    

    
      	
               
      

            	
              (b)

            	
              the
      Company has not made any payments except payments of a routine
      nature;

            

    

    

    
      	
               
      

            	
              (c)

            	
              the
      business of the Company has not been materially and adversely affected by
      the loss of any important contract or customer or source of supply or by
      any abnormal factor not affecting similar businesses to a like extent and
      the Vendor is not aware of any facts which are likely to give rise to any
      such effects;

            

    

    

    
      	
               
      

            	
              (d)

            	
              no
      monies owing to the Company have been written off or written down or have
      become irrecoverable in whole or in part or are regarded as irrecoverable
      nor has there been any agreement for the release of any person under any
      liability to the Company; and

            

    

    

    
      	
               
      

            	
              (e)

            	
              there
      has been no depletion in the net assets of the
  Company.

            

    

    

    

    
      	
              7.5

            	
              The
      Company has no outstanding capital commitments and is not engaged in any
      scheme or project requiring the expenditure of capital and since the
      Accounts Date the Company has not entered into any agreement or
      transaction for the sale or acquisition of any capital assets or of any
      current assets other than in the ordinary course of
    business.

            

    

    
      
      

    

     

     

     

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

     

    
      
        	
                7.6

              	
                Since
      the Accounts Date all transactions between the Company and companies (if
      any) under the direct or indirect control of the Vendor or any of them and
      not sold hereunder to the Purchaser has been on arms length terms and
      there are no debts or obligations howsoever arising owed by such companies
      to the Company or by the Company to such companies arising otherwise than
      in the normal course of trading on arms length
  terms.

              

      

       

    

    
      	
              8.

            	
              ASSETS
      OF THE COMPANY

            

    

    

    
      	
              8.1

            	
              The
      assets included in the Accounts or acquired since the Accounts Date (other
      than trading stock subsequently disposed of in the ordinary course of
      business or trading stock acquired subject to retention or reservation of
      title by the supplier or manufacturer thereof as disclosed in the
      Disclosure Letter) and all assets employed by or required for the business
      of the Company:

            

    

    

    
      	
               
      

            	
              (a)

            	
              are
      solely the property of and legally and beneficially owned by the Company
      and are not subject to any hire or hire purchase agreement, conditional
      sale, credit sale or similar agreement and are and will be at the date of
      completion in reasonable working condition and of merchantable quality. No
      such assets are subject to any assignment debenture, mortgage,
      encumbrance, charge, pledge, lien or adverse interest or will be on
      Completion of any kind; and

            

    

    

    
      	
               
      

            	
              (b)

            	
              are
      in the possession or under the control of the
  Company.

            

    

    

    
      	
              8.2

            	
              The
      Company shall not before Completion dispose of or purchase any assets
      other than stock in the ordinary and normal course of the day-to-day
      trading operation and business of the
Company.

            

    

    

    
      	
              8.3

            	
              The
      Company's stock-in-trade, stocks of raw materials, packaging materials and
      finished goods now held are not excessive and are adequate in relation to
      the current trading requirements of the business of the Company and none
      of the stock is obsolete, slow moving or inappropriate in relation to the
      current business of the Company; all such stock-in-trade is in good
      condition and capable of being sold by the Company in the ordinary course
      of its business in accordance with its current price lists without rebate
      or allowance to a purchaser.

            

    

    

    
      	
              8.4

            	
              The
      Company has not purchased any stock, goods or materials from any of its
      suppliers on terms that property in it does not pass until full payment is
      made or all indebtedness
discharged.

            

    

    

    
      	
              8.5

            	
              No
      circumstance has arisen or is likely to arise in relation to any asset
      held by the Company under a lease or similar agreement whereby the rental
      payable has been or is likely to be
increased.

            

    

    

    
      	
              8.6

            	
              All
      vehicles and office equipment owned or used by the Company are in
      reasonable repair, condition and working order and have been regularly and
      properly maintained.

            

    

    

    
      	
              8.7

            	
              Save
      as disclosed in the Disclosure Letter, the Company has not acquired any
      assets under a hire, hire purchase or credit sale agreement and in respect
      of any such agreement disclosed there has been no default by the Company
      in the performance or observance on any of the provisions
      thereof.

            

    

    

    

    
      	
              9.

            	
              DEBTS

            

    

    

    
      	
              9.1

            	
              All
      debts owed to the Company will realise their full face value and be good
      and collectable in the ordinary course of business and no amount included
      in the Balance Sheet owing to the Company at the Accounts Date has been
      released for an amount less than the value at which it was included in the
      Balance Sheet or has been deferred, subordinated or written off or has
      proved to any extent to be irrecoverable or is now regarded as
      irrecoverable in whole or in part.

            

    

     

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

     

    
      	
              9.2

            	
              No
      part of the amounts included in the Accounts, or subsequently recorded in
      the books of the Company, as owing by any debtors is overdue by more than
      I month.

            

    

    

    
      	
              9.3

            	
              The
      amounts due from debtors as at Completion (less the amount of any relevant
      provision or reserve, determined on the same basis as that applied in the
      Accounts and disclosed in the Disclosure letter) will be recoverable in
      full in the ordinary course of business any in any event not later than I
      month after Completion; and none of those debts is subject to any
      counter-claim, or set off, except to the extent of any such provision or
      reserve.

            

    

    

    

    
      	
              10.

            	
              BOOKS
      OF ACCOUNT

            

    

    

    
      	
              10.1

            	
              For
      a period of3 years prior to Completion proper books and records of the
      activities of the Company have been properly written up and accurately
      present and reflect in accordance with normal accounting practices
      consistently applied and generally accepted business principles and
      standards and statutory requirements all transactions entered into and
      liabilities incurred by the Company or to which it has become a
      party.

            

    

    

    
      	
              10.2

            	
              All
      amounts outstanding and appearing in the books of the Company as monies
      due to directors or shareholders or companies controlled by them or
      associated companies of the Company wholly represent money or monies worth
      paid or transferred to the Company or remuneration accrued due and payable
      for services actually rendered and no part thereof has been provided
      directly or indirectly out of the assets of the
  Company.

            

    

    

    

    
      	
              11.

            	
              LICENCES
      AND STATUTORY COMPLIANCES

            

    

    

    
      	
              11.1

            	
              All
      necessary licences consents permits and authorities (public and private)
      have been obtained by the Company to enable the Company to carryon its
      business lawfully and effectively in the places and in the manner in which
      such business is now carried on (short particulars of each licence, permit
      and consent being set out in the Disclosure letter) and all such licences
      consents permits and authorities are valid and subsisting and the Vendors
      know of no breach of any of the terms or conditions thereof and of no
      reason why any of them should be suspended cancelled or
      revoked.

            

    

    

    
      	
              11.2

            	
              The
      Company has not done or omitted to do and none of its officers, agents,
      employees (during the course of their duty in relation to it) have done or
      omitted to do anything in contravention or breach of any statute, order or
      regulation or the like (whether in Hong Kong or elsewhere) applicable to
      it or its business and giving rise to any fine, penalty, default
      proceedings or other liability on its
part.

            

    

    

    
      	
              11.3

            	
              The
      Company has conducted and is conducting its business in accordance with
      all applicable laws and regulations (whether in Hong Kong or
      elsewhere).

            

    

    

    

    
      	
              12.

            	
              INTELLECTUAL
      PROPERTY

            

    

    

    
      	
              12.1

            	
              Particulars
      of Intellectual Property used by the Company in connection with its
      business (all of which are registered in the name of the Company and none
      of which has lapsed) are contained in the Disclosure Letter and in
      Schedule I to this Agreement and the Company has not in carrying on its
      business in the past and does not own, use or require to use any
      Intellectual Property except such as set out
  herein.

            

    

    

    
      	
              12.2

            	
              In
      relation to such Intellectual Property (if
any):

            

    

     

     

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    
 

    
      	
               
      

            	
              (a)

            	
              all
      Intellectual Property registered in the name of the Company or used or
      required to be used by the Company is beneficially owned by it and is not
      subject to any agreements or licences (save as disclosed in the Disclosure
      Letter) affecting the same and is valid and
  subsisting;

            

    

    

    
      	
               
      

            	
              (b)

            	
              all
      agreements and licences for the use by the Company of Intellectual
      Property not registered in its name are valid and subsisting and all
      renewal fees in respect thereof due up to Completion have been
      paid;

            

    

    

    
      	
              12.3

            	
              The
      Company is not a party to any licence agreement or right under or in
      respect of any patent trade mark registered design copyright know-how
      secret process or other protected industrial right or asset of the Company
      and the Company has not done anything which constitutes or might
      constitute an infringement of any patent trade mark registered design
      copyright or any other of the above mentioned industrial rights or
      assets.

            

    

    

    

    
      	
              13.

            	
              INSURANCES

            

    

    

    
      	
              13.1

            	
              The
      policies of insurance which are maintained by the Company afford the
      Company adequate cover against accident, product and public liability and
      such other risks as companies carrying on the same type of business as the
      Company commonly cover by insurance and all the assets (including
      stock-in-trade) of the Company of an insurable nature have at all material
      times been and are insured in amounts to the full replacement value
      thereof against fire and other normal
risks.

            

    

    

    
      	
              13.2

            	
              A
      list of all current insurance policies in respect of which the Company has
      an interest are disclosed in the Disclosure Letter and all such policies
      are in full force and effect and are not void or voidable; no claim is
      outstanding or may be made under any such policies and no event has
      occurred or circumstances exist which are likely to give rise to any
      claim, nothing has been done or omitted to be done which is likely to
      result in an increase in premium; and nothing has been done or omitted to
      be done which would make any such policy void or
  voidable.

            

    

    

    

    
      	
              14.

            	
              CONTRACTS

            

    

    

    
      	
              14.1

            	
              Save
      as disclosed in the Disclosure Letter the Company has not created any
      mortgage, charge or debenture (whether secured or unsecured) or issued any
      guarantee or indemnity or granted any security on behalf of any person or
      company.

            

    

    

    
      	
              14.2

            	
              There
      are no contractual arrangements or obligations binding upon the Company
      which will or may be legally terminated or breached as a result of the
      execution of this Agreement or
Completion.

            

    

    

    
      	
              14.3

            	
              There
      are no agreements or arrangements entered into by the Company otherwise
      than by way of bargain at arm's
length.

            

    

    

    
      	
              14.4

            	
              All
      contracts are entered into in the normal course of business. There are no
      long term or onerous or abnormal contracts or commitments whether oral or
      written or which cannot be fulfilled or performed on time or without undue
      or unusual expenditure of money or
effort.

            

    

    

    
      	
              14.5

            	
              There
      are no contracts or arrangements between the Company and the Vendor other
      than contracts in the ordinary course of the Company's day-to-day trading
      operations

            

    

    

    
      	
              14.6

            	
              There
      has been no material default or material breach in respect of any
      contract, commitment, undertaking or arrangement binding upon the Company
      and there are no circumstances known to the Vendor which, with the passage
      of time or the giving of notice or otherwise, will result in such default
      or breach or shall be likely to lead to such a breach or
      default.

            

    

     

     

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    
 

    
      	
              14.7

            	
              Save
      as anticipated by this Agreement there are and will at Completion be in
      force no powers of attorney given by the
  Company.

            

    

    

    
      	
              14.8

            	
              No
      loan made by the Company has been in breach of and the Company is not in
      default of any obligation arising thereunder or under the provision of any
      law.

            

    

    

    
      	
              14.9

            	
              No
      person has given any guarantee of or any security for any overdraft loan
      or loan facility granted to the
Company.

            

    

    

    

    
      	
              15.

            	
              LITIGATION

            

    

    

    
      	
              15.1

            	
              The
      Company is not engaged either on its own account or vicariously in any
      litigation or arbitration or tribunal proceedings and so far as the Vendor
      are aware no litigation arbitration or tribunal proceedings are pending or
      threatened by or against the
Company.

            

    

    

    
      	
              15.2

            	
              The
      Company has not committed any criminal illegal or unlawful act and the
      Vendor is not aware that any officer or employee of the Company has
      committed any such act.

            

    

    

    
      	
              15.3

            	
              The
      Company has not committed any breach of contract or statutory duty or any
      other act which could lead to a claim for compensation damages specific
      performance or an injunction being made against it or which could entitle
      a third party to call in any monies before the normal due date thereof or
      to exercise any right of set off or which would otherwise adversely affect
      the Company.

            

    

    

    

    
      	
              16.

            	
              BANK
      ACCOUNTS AND CHEQUES

            

    

    

    
      	
              16.1

            	
              The
      aggregate amount of uncleared cheques drawn by the Company outstanding at
      close of business prior to the date of this Agreement does not amount in
      the aggregate to more than
EUROlO,OOO.

            

    

    

    
      	
              16.2

            	
              There
      will not at Completion be any credit cards or credit accounts available
      for use by any director or employee of the
  Company.

            

    

    

    

    
      	
              17.

            	
              CONFIDENTIALITY

            

    

    

    
      	
              17.1

            	
              The
      Company has not disclosed to any other person firm or company any of its
      know-how trade secrets confidential information technical processes or its
      lists of customers or suppliers.

            

    

    

    

    
      	
              18.

            	
              EMPLOYEES
      AND PENSIONS

            

    

    

    
      	
              18.1

            	
              The
      particulars shown in the Schedule of Employees referred to in the
      Disclosure Letter show the names and lengths of service of every officer
      and names and lengths of continuous employment of every employee of the
      Company at the date of this Agreement and the remuneration payable and
      other benefits provided or which the Company is legally or morally bound
      to provide to each such officer and employee and are true and accurate and
      there have been no engagements of new officers or employees ofthe Company
      nor any increases in the remuneration and other benefits or changes in the
      terms of service of any director, officer or employee of the Company since
      the Accounts Date nor have any such engagements increases or changes been
      agreed to or promised and there are no employees employed by the Company
      other than as shown in the said Schedule of Employees referred to in the
      Disclosure Letter

            

    

     

     

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    
 

    
      	
              18.2

            	
              There
      are not in existence any contracts of service with Directors or employees
      of the Company which cannot be terminated by three months' notice or less
      without giving rise to any claim for damages or compensation (other than
      under any relevant Employment
laws).

            

    

    

    
      	
              18.3

            	
              There
      are no outstanding payments or benefits (actual or contingent) of any kind
      due to any present or former directors or the employees of the Company
      including compensation and arrears due, incentives, benefits or bonuses
      which remain unpaid and which will not have been settled as at the date of
      completion other than remuneration accrued due or for reimbursement of
      business expenses.

            

    

    

    
      	
              18.4

            	
              No
      former employee of the Company was dismissed by the Company within 3
      months prior to the date hereof or has a claim for compensation for
      wrongful dismissal or for unfair dismissal or to a redundancy or long
      service payment from the Company.

            

    

    

    
      	
              18.5

            	
              No
      executive of the Company, who is in receipt of remuneration in excess of
      EURO 5,000 per month, and no officer of the Company has given or received
      notice terminating his employment, and no such executive or officer will
      be entitled to give such notice as a result of this
    Agreement.

            

    

    

    
      	
              18.6

            	
              The
      Company has no obligation (whether legally or morally binding or
      established by custom) to establish a share in any subsidiary or offer or
      issue shares in the Company or any other company for or to any person or
      to pay any pension or death in service benefit or make any other payment
      on or after retirement or leaving service to or in respect of any person
      who is now or has been an officer or employee of the Company (except
      pursuant to the Company's pension scheme(s) (if any) ("the Scheme")
      referred to in the Disclosure Letter) and the Scheme (full particulars of
      which have been given to the Purchaser) is being properly operated. The
      Scheme was at the Accounts Date and is at the date hereof fully funded and
      proper actuarial advice has been taken thereon (a copy of which advice is
      attached to the Disclosure Letter) and the contributions of the Company
      recommended by the actuaries have been made. In particular the Scheme is
      fully funded as to that past service which counts for pension benefit
      purposes proper allowance being made for future increases in salary both
      due to inflation and merit.

            

    

    

    
      	
              18.7

            	
              There
      are no schemes in operation under which any employee of the Company is
      entitled to a commission or remuneration, calculated by reference to the
      whole or part of the turnover, profits or sales of the
      Company.

            

    

    

    
      	
              18.8

            	
              The
      Company or their respective employees is not involved in any industrial
      dispute and there are no facts known or which on reasonable enquiry be
      known to the Company or its directors or to the Vendors which might
      suggest that there may be an industrial dispute involving the Company or
      that this Agreement may lead to any such industrial dispute in particular
      no strike of the employees or a group of employees is currently threatened
      or taking place and there is no contract agreement or arrangement between
      the Company and any trade union or other body representing employees of
      the Company nor is the Company bound by any collective agreement affecting
      any terms or conditions of employment of any of its
    employees.

            

    

    

    

    
      	
              19.

            	
              TAXATION
      MATTERS

            

    

    

    
      	
              19.1

            	
              The
      Company has properly made all returns and provided all other information
      required for the purposes of taxation and none of such returns is disputed
      by any authority concerned and the Vendors are not aware that any dispute
      is likely.

            

    

    

    
      	
              19.2

            	
              All
      payments by the Company to any person which ought to have been made under
      deduction or withholding of tax have been so made and the Company has
      (where required by law to do so) accounted to the relevant authorities for
      the tax deducted or withheld.

            

    

     

     

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    
 

    
      	
              19.3

            	
              The
      Company has not made or agreed to make any payment to or provided or
      agreed to provide any benefit for any officer or employee of the Company
      or any third party which is not allowable as a deduction in calculating
      the profits of the Company for taxation
  purposes.

            

    

    

    
      	
              19.4

            	
              For
      three years prior to the date hereof no change of ownership of the Company
      has taken place nor has there been any major change in the nature or
      conduct of the Company's trade.

            

    

    

    
      	
              19.5

            	
              The
      value attributed to each of the capital assets of the Company in the
      Accounts does not exceed the written down value for the purposes of
      capital allowances.

            

    

    

    

    
      	
              20.

            	
              DUTIES

            

    

    

    All
duties, imposts, or fees payable in respect of any assets (including
stock-in-trade) imported, exported or owned by the Company have been paid in
full.

    

    

    
      	
              21.

            	
              GENERAL

            

    

    

    
      	
              21.1

            	
              No
      commissions introductory fees bonuses or other payments or gifts having a
      monetary value have been paid or made available to any person firm or
      company in relation to any transaction implemented under or contemplated
      in this Agreement.

            

    

    

    
      	
              21.2

            	
              The
      Warranties would also be true and accurate if a reference to the actual
      time of Completion were substituted for any reference to the time or date
      of this Agreement.

            

    

    

    

    
      
         

      

      
        21

        
          

        

      

      
         

      

    

    EXECUTION

    

    IN
WITNESS WHEREOF this Agreement has been executed on the day and year first above
written.

    

    

    

    
      	
              FOR
      AND ON BEHALF OF 

              BIOFIELD
      CORP. SIGNED

               by

               

            	
              )

              )

              )

              )

              )

              )

            	 
      
	
              By:

            	 
      
	
              Date:

            	 
      	 
      	
              Its:

            	 
      
	 
      
	 
      
	
              FOR
      AND ON 

              BEHALF
      OF 

              VALIRXPLC
      SIGNED 

              by

            	
              )

              )

              )

              )

              )

              )

               

            	 
      
	 
      	
              By:

            	 
      
	
              Date:

            	 
      	 
      	
              Its:

            	 
      

    

    

    

    
      
         

      

      
        22ex10_31.htm

    
       

       

       

      
        

        

      

      
 

      

      
        
          
            
              	 
      	
                      Date

                    	 
      	
                      of
      December 2008

                    	 
      

            

          

        

        

      

      

      ValiBio
SA

      

      as
Supplier

      

      

      

      and

      

      

      

      B10FIELD
CORP.

      

      as
Distributor

      

      

      

       

        
          

        

      

       

      EXCLUSIVE
DISTRIBUTION AGREEMENT

        

        

      

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
        
           

        

        
          - 1
-

          
            

          

        

        
           

        

      

      CONTENTS

       

      Clause
Heading

       

      
        	
                Number

              	 
      	
                Page

              
	 
      	 
      	 
      
	
                1.

              	
                INTERPRETATION

              	
                3

              
	 
      	 
      	 
      
	
                2.

              	
                APPOINTMENT
      OF DISTRIBUTOR

              	
                5

              
	 
      	 
      	 
      
	
                3.

              	
                TERM

              	
                7

              
	 
      	 
      	 
      
	
                4.

              	
                SUPPLY
      OF PRODUCTS

              	
                7

              
	 
      	 
      	 
      
	
                5.

              	
                PAYMENT
      FOR PRODUCTS

              	
                8

              
	 
      	 
      	 
      
	
                6.

              	
                MARKETING
      OF THE PRODUCTS

              	
                9

              
	 
      	 
      	 
      
	
                7

              	
                INSTALLATION,
      MAINTENANCE AND SERVICE

              	
                10

              
	 
      	 
      	 
      
	
                8.

              	
                REPORTS
      AND RECORDS

              	
                12

              
	 
      	 
      	 
      
	
                9.

              	
                SUPPORT
      AND TRAINING

              	
                12

              
	 
      	 
      	 
      
	
                10.

              	
                DISTRIBUTOR’S
      GENERAL OBLIGATIONS

              	
                13

              
	 
      	 
      	 
      
	
                11.

              	
                COMPLIANCE
      WITH LAW

              	
                14

              
	 
      	 
      	 
      
	
                12.

              	
                INTELLECTUAL
      PROPERTY

              	
                15

              
	 
      	 
      	 
      
	
                13.

              	
                CONFIDENTIALITY

              	
                17

              
	 
      	 
      	 
      
	
                14.

              	
                REPRESENTATIONS
      AND WARRANTIES

              	
                18

              
	 
      	 
      	 
      
	
                15.

              	
                BREACH

              	
                19

              
	 
      	 
      	 
      
	
                16.

              	
                INDEMNITY

              	
                19

              
	 
      	 
      	 
      
	
                17.

              	
                FORCE
      MAJEURE

              	
                20

              
	 
      	 
      	 
      
	
                18.

              	
                TERMINATION

              	
                20

              
	 
      	 
      	 
      
	
                19.

              	
                EFFECTS
      OF TERMINATION

              	
                21

              
	 
      	 
      	 
      
	
                20.

              	
                NOTICES

              	
                23

              
	 
      	 
      	 
      
	
                21.

              	
                MISCELLANEOUS

              	
                24

              
	 
      	 
      	 
      
	
                22.

              	
                DISPUTE
      RESOLUTION

              	
                25

              
	 
      	 
      	 
      
	
                SCHEDULE
      1

              	
                27

              
	 
      	 
      	 
      
	
                SCHEDULE
      2

              	
                28

              
	 
      	 
      	 
      
	
                SCHEDULE
      3

              	
                29

              

      

      

       

      
        
           

        

        
          - 2
-

          
            

          

        

        
           

        

      

      THIS AGREEMENT is made on the
day of December, 2008

       

      

      PARTIES

      
        	
                (1)

              	
                ValiBio
      SA, a corporation organised and existing under the laws of Belgium, having
      its principal place of business at 25 Avenue Georges Lemaitre, 6041
      Gosselies, Belgium (the "Supplier");
      and

              

      

      

      
        	
                (2)

              	
                Biofield
      Corp., a Delaware corporation organised, with registered office at 1615
      Walnut Street, 3rd
      Floor, Philadelphia, PA 19102 (the "Distributor").

              

      

      

      RECITALS

      

      
        	
                (A)

              	
                The
      Supplier has the exclusive right to supply the Products for the operation
      of the Products in the Territory.

              

      

      

      
        	
                (B)

              	
                The
      Supplier wishes to appoint the Distributor and the Distributor wishes to
      act as the exclusive distributor of the Products in the Territory on the
      tenns of this Agreement.

              

      

      

      

      OPERATIVE
PROVISIONS

       

      
        	
                1.

              	
                INTERPRETATION

              

      

       

      
        	
                1.01

              	
                In
      this Agreement, unless the context otherwise
  requires:

              

      

      

      
        	
                 
      

              	
                "Authorisation"

              	
                means
      any authorisation, approvals, consents, licences, permits, franchises,
      notarizations, permissions, registrations, resolutions, directions,
      declarations and exemptions, however
described;

              

      

      

      
        	
                 
      

              	
                "Business
      Day"

              	
                means
      a day on which banks are open for all forms of normal commercial business
      from Monday to Friday from 9 am to 5
pm;

              

      

      

      
        	
                 
      

              	
                "Change in
      Control"

              	
                means
      with respect to any person, any change in the identity or composition of
      the person or persons who before such change occurs directly or indirectly
      have Control of the first mentioned
person;

              

      

      

      
        	
                 
      

              	
                "Commencement
      Date"

              	
                means
      the date when the Distributor shall have paid an aggregate of not less
      than Euro 600,000 for Sale Shares in the Supplier pursuant to a Sale of
      Shares Agreement between ValiRx PIc and the Distributor of even date
      herewith.;

              

      

      

      
        
          	
                         

                	"Confidential
Information" 	
                  means
      any information of a technical, business or financial nature (including
      without limitation designs, techniques, software, know-how, service and
      operations manuals and pricing infonnation) which is disclosed to the
      Distributor by the Supplier (or its nominated manufacturers or agents) in
      connection with this Agreement (whether orally or in writing, and whether
      or not such information is expressly stated to be confidential or marked
      as such);

                

        

      

      

      
        	
                 
      

              	
                "Control"

              	
                when
      used with respect to any person means the possession, directly or
      indirectly, of power to direct or cause the direction of the management
      and policies of such person, whether through the ownership of voting
      securities or by contract or
otherwise;

              

      

      

      
        	
                 
      

              	
                "Euros"

              	
                mans
      the official currency of the European
Union.

              

      

      
        
        

      

       

       

      
        
          
          

        

        
          - 3
-

          
            

          

        

        
          
          

        

      

       

       

      
        	
              	
                "Force
      Majeure"

              	
                means,
      in relation to either party, any circumstances beyond the reasonable
      control of that party (including, without limitation, any an act of war
      (whether declared or not) or terrorism, the mobilisation of armed forces,
      civil commotion or riot, natural disaster, lightning, fire, earthquake,
      storm, flood, drought, disease, explosion, industrial action or labour
      disturbance, currency restriction, embargo, action or inaction by a
      Government Agency, or a failure of a supplier, public utility or common
      carrier);

              

      

       

      
        	
                 
      

              	
                "Governmental
      Agency"

              	
                means
      a government, a department, agency or instrumentality of any government, a
      governmental, semi-governmental or judicial person, or a person who is
      charged with the administration of a
law;

              

      

      

      
        	
                 
      

              	
                "lncoterms"

              	
                mans
      the international rules for the interpretation of trade terms and foreign
      trade known as "lncoterms" published by the International Chamber of
      Commerce;

              

      

      

      
        	
                 
      

              	
                "Intellectual
      Property"

              	
                means
      all business names, confidential information, copyright, circuit layouts,
      designs, registered and unregistered designs (including applications for
      registration), emblems, know how, logos, patentable inventions, patent
      applications, patents, registered and unregistered trade marks (including
      applications for registration), and all other similar industrial or
      intellectual property rights whenever created or however arising
      subsisting in or relating to the Products, or any improvement or
      enhancement to it.

              

      

      

      
        	
                 
      

              	
                "Invoice
      Value"

              	
                means
      the sums invoiced by the Supplier to the Distributor in respect of any
      Products, less any value added Tax, goods and services Tax (or other
      Taxes, duties or levies) and any amounts for transport or insurance
      included in the invoice;

              

      

      

      
        	
                 
      

              	
                "Law"

              	
                includes
      any constitutional provisions, treaties, conventions, statutes, acts,
      laws, decrees, ordinances, subsidiary and subordinate legislation, orders,
      awards, determinations, rules and regulations having the force of
      law;

              

      

      

      
        
          	 	
                  "Licensed
      Software Package"

                	
                  has
      the meaning specified in Clause
      7.12(c);

                

        

      

      

      
        	
                 
      

              	
                "Products"

              	
                means,
      subject as provided in Clause 4.2, such of the products listed in Schedule
      I as are at the date of this Agreement in the range of products
      manufactured by or for the Supplier, and such other products as may from
      time to time be agreed in writing by the
  parties;

              

      

      

      
        	
                 
      

              	
                "Services"

              	
                means
      the services of warranty and maintenance, fault diagnosis and repair
      services of the Products as may be required by customers or
      end-users;

              

      

      

      
        	
                 
      

              	
                "Tax"

              	
                includes
      any Tax, levy, duty, charge, impost, fee, deduction or withholding of any
      nature at any time imposed, levied, collected, withheld or assessed by any
      taxing or other authority and includes any interest, penalty or other
      charge payable or claimed in respect of the
  same;

              

      

       

       

       

       

      
        
          
          

        

        
          - 4
-

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                "Term"

              	
                means
      the period beginning on the Commencement Date and ending on the date this
      Agreement is terminated in accordance with Clause 3 or Clause
      18;

              

      

      

      
        	
                 
      

              	
                "Territory"

              	
                means
      Worldwide (other than Belgium) except as provided in Clause 2.10 and in
      Schedule 1;

              

      

      

      
        	
                 
      

              	
                "Trade
      Marks"

              	
                means

              

      

      
        	
                 
      

              	
                (a)

              	
                the
      trade marks registered or for which applications for registration have
      been made in the name of the Supplier (or its
  nominee);

              

      

      

      
        	
                 
      

              	
                (b)

              	
                such
      other trade marks as are used by the Supplier on or in relation to the
      Products at any time during this Agreement;
and

              

      

      
        	
                 
      

              	
                (c)

              	
                any
      trade marks used by the Supplier on or in relation to the Products at any
      time.

              

      

      

      
        	
                1.02

              	
                In
      this Agreement the headings are for convenience only and shall not affect
      the interpretation of this Agreement. In this Agreement, unless the
      context otherwise requires, a reference
to:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                any
      party shall include its successors and permitted
  assigns;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                this
      Agreement or any other document is a reference to this Agreement or that
      other document as amended, varied, novated or substituted from time to
      time;

              

      

      

      
        	
                 
      

              	
                (c)

              	
                any
      legislation (including subordinate legislation) is to that legislation as
      amended, re-enacted or replaced, and includes any subordinate legislation
      issued under it;

              

      

      

      
        	
                 
      

              	
                (d)

              	
                a
      singular word includes the plural, and vice versa, a word suggesting one
      gender includes the other genders;

              

      

      

      
        	
                 
      

              	
                (e)

              	
                a
      person includes an individual, firm, body corporate, unincorporated
      association, government or governmental, semi-governmental or local
      authority or agency; and

              

      

      

      
        	
                 
      

              	
                (f)

              	
                Recitals,
      Clauses and Schedules are to recitals and clauses of and schedules to this
      Agreement.

              

      

      

       

      2.           APPOINTMENT
OF DISTRIBUTOR

       

      
        	
                2.1

              	
                The
      Supplier appoints the Distributor for the Term as its exclusive
      distributor for the resale of the Products in the Territory (even to the
      Supplier unless the Supplier wishes to use the products for research and
      development purposes and only for research and development purposes), and
      the Distributor agrees to act in that capacity, subject to the terms and
      conditions of this Agreement.

              

      

      

      
        	
                2.2

              	
                Subject
      to Clause 18.1, the Supplier shall
not:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                appoint
      any other person in the Territory as a distributor or agent for the
      Products in the Territory;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                supply
      to any other person in the Territory any of the Products, whether for use
      or resale, except for purposes of research and development only;
      or

              

      

      

      
        	
                 
      

              	
                (c)

              	
                supply
      to any person outside in the Territory to resell any goods to the
      Territory of the Distributor.

              

      

      

       

       

      
        
          
          

        

        
          - 5
-

          
            

          

        

        
          
          

        

      

      
 

      
        	
                2.3

              	
                The
      Distributor will be an independent contractor. The Distributor shall be
      entitled to (and shall when using any of the Intellectual Property)
      describe itself as the Supplier's "Authorised Distributor" for the
      Products, but shall not hold itself out as the Supplier's agent for sales
      of the Products or as being entitled to bind the Supplier in any
      way.

              

      

      

      
        	
                2.4

              	
                The
      Distributor shall procure that any Authorized Sub-Distributor complies
      with this Agreement as it applies to the Distributor, and the Distributor
      shall be liable to the Supplier for any acts or omissions of such
      Authorized Sub-Distributor.

              

      

      

      
        	
                2.5

              	
                Nothing
      in this Agreement shall entitle the Distributor
  to:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                any
      priority of supply in relation to the Products as against the Supplier's
      other distributors or customers; or

              

      

      

      
        	
                 
      

              	
                (b)

              	
                any
      right or remedy against the Supplier if any of the Products are sold in
      the Territory by any person, firm or company outside the Territory other
      than the Supplier, except where Supplier had prior knowledge of such a
      sale.

              

      

      

      
        	
                2.6

              	
                The
      Distributor shall not:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                obtain
      the Products (or any goods which compete with the Products) for resale
      from any person, firm or company other than the Supplier, subject to
      clause 2.6(a)(l) below;

              

      

      

      
        	
                 
      

              	
                2.6
      (a)(1)

              	
                The
      following goods or products shall not be deemed to "compete with the
      Products" pursuant to clause 2.6(a) above and clause 2.6(b) below of this
      Agreement: (i) Biofield Diagnostic System and Biofield(R) Breast
      Proliferation Rate Detection System and related cancer diagnosis and
      screening technology (as reflected in Biofield's previous patents and
      patent applications) and any improvements, enhancements, and current or
      future applications thereof or thereto, including to other types of
      cancers such as cervical and prostrate; (ii) OraCalmTM (for oral herpes)
      and ViraCalmTM (for genital herpes) non-invasive medical devices for the
      treatment of oral and genital herpes, which NeuroMed Devices, Inc. has
      granted exclusive worldwide distributions rights to Biofield and any
      improvements, enhancements, and current or future applications thereof or
      thereto; and (iii) any other goods, products and technology which are
      being distributed or developed by Biofield as of the execution of this
      Agreement and any improvements, enhancements, and current or future
      applications thereof or thereto.

              

      

      

      
        	
                 
      

              	
                (b)

              	
                be
      concerned or interested, either directly or indirectly, in the manufacture
      or distribution in the Territory of any goods which compete with the
      Products which are supplied by any person other than the
      Supplier;

              

      

      

      
        	
                 
      

              	
                (c)

              	
                seek
      customers, establish any branch or maintain any distribution depot for the
      Products in any country which is outside the
  Territory;

              

      

      

      
        	
                 
      

              	
                (d)

              	
                sell
      the Products to any customer in any country which
  is:

              

      

      

      
        	
                 
      

              	
                (i)

              	
                outside
      the Territory; or

              

      

      
        	
                 
      

              	
                (ii)

              	
                within
      the Territory to a person who the Distributor ought reasonably to know is
      likely to resell, hire or lease the Products to a person outside the
      Territory;

              

      

      

      
        	
                 
      

              	
                (e)

              	
                lease
      or hire out any Products or dispose of any Products otherwise than by
      absolute sale without prior written approval of the Supplier;
      or

              

      

      
        
        

      

       

       

       

      
        
          
          

        

        
          - 6
-

          
            

          

        

        
          
          

        

      

       

       

      
        	
              	
                (f)

              	
                when
      selling Products, offer terms to its customers or end-users that are wider
      than those found in the standard Terms of Sale under Schedule
      3.

              

      
        	
                2.7

              	
                The
      Distributor shall refer to the Supplier or to such authorized distributor
      of the Supplier as the Supplier may notify to the Distributor from time to
      time any enquiries for the purchase of Products received by the
      Distributor from persons outside the
Territory.

              

      

      

      
        	
                2.8

              	
                The
      Supplier shall refer to the Distributor any enquiries received by it for
      the purchase of Products from persons in the
  Territory.

              

      

      

      
        	
                2.9

              	
                If
      the Distributor receives any money for the sale of Products to a Person
      outside the Territory, it shall hold such moneys for the account of the
      Supplier and pay to the Supplier promptly on
  receipt.

              

      

      

      
        	
                2.10

              	
                In
      the event that (a) no sales of Products are made in a sovereign country
      during the Term after two (2) years of the Authorisation to distribute the
      Products by the appropriate governmental agenc(ies) in that particular
      sovereign country, or (b) there is a more than fifty percent (50%)
      reduction between (i) the value of sales in any 12 months period in any
      sovereign country and (ii) the average annual sales averaged over the 24
      month period preceding the 12 month period referenced in clause 2.1
      O(b)(i), then in either case such sovereign country shall be deemed no
      longer to form part of the Territory for the purposes of this agreement,
      unless otherwise specifically agreed in writing between the Supplier and
      the Distributor. Over the next 12 month period, the Supplier and
      Distributor agree to work in good faith with each other (a) to coordinate
      distribution strategies and plans in individual countries taking into
      consideration any regulatory requirements; (b) to more definitively
      establish any minimum sales requirements; and (c) if necessary, to
      effectuate any amendment to this clause
2.10.

              

      

      

       

      
        	
                3

              	
                TERM

              

      

       

      This
Agreement shall be deemed to have come into force on the Commencement Date and,
subject as provided in Clauses 18.2 and 18.3, shall continue in force for a
period of 10 years from the Commencement Date with automatic renewals for
additional ten (10) years terms and thereafter unless or until terminated by
either party giving to the other not less than 3 months' written notice expiring
at or at any time after the end of that period.

      

      The
Supplier shall grant the option of priority to the Distributor to negotiate a
further renewal with the Supplier. Three months before the end of the Term, the
Distributor shall give notice to the Supplier for the negotiation of the renewal
of this Agreement.

      

       

      4.           SUPPLY
OF PRODUCTS

       

      
        	
                4.1

              	
                Subject
      as provided in Clauses 2.5(a) and 4.2, the Supplier shall use its best
      endeavours to supply the Products to the Distributor in accordance with
      the Distributor's orders.

              

      

      

      
        	
                4.2

              	
                The
      Supplier shall not be under any obligation to continue to supply or
      procure the manufacture of all or any of the Products, and shall be
      entitled to make such alterations to the specifications of the Products as
      it may think fit and to withdraw from sale any Product at any time and in
      its absolute discretion.

              

      

      

      
        	
                4.3

              	
                Each
      order for the Products shall constitute a separate contract, and any
      default by the Supplier in relation to anyone order shall not entitle the
      Distributor to treat this Agreement as
  terminated.

              

      

      

      
        	
                4.4

              	
                The
      Distributor shall, in respect of each order for the Products to be
      supplied hereunder, be responsible
for:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                ensuring
      the accuracy of the order;

              

      

       

       

       

      
        
          
          

        

        
          - 7
-

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 
      

              	
                (b)

              	
                providing
      the Supplier with any information which is necessary in order to enable
      the Supplier to fulfill the order and to comply with all labeling,
      marketing and other applicable legal requirements in the Territory;
      and

              

      

      

      
        	
                4.5

              	
                The
      Distributor shall give the Supplier not less than 3 months' written notice
      of its estimated requirements of the Products for each month, and shall
      promptly notify the Supplier of any changes in circumstances which may
      affect its requirements.

              

      

      

      
        	
                4.6

              	
                Upon
      receipt and confirmation of each order the Supplier shall as soon as is
      practicable inform the Distributor of the Supplier's estimated delivery
      date for the consignment. The Supplier shall use all reasonable endeavours
      to meet the delivery date, but time of delivery shall not be of the
      essence and accordingly the Supplier shall have no liability to the
      Distributor if, notwithstanding such endeavours, there is any delay in
      delivery.

              

      

      

      
        	
                4.7

              	
                The
      title to any consignment of the Products shall not pass to the Distributor
      until the Supplier has received payment in full of the price of such
      Products.

              

      

      

      
        	
                4.8

              	
                Unless
      otherwise agreed in writing by the Supplier in respect of any Purchaser
      Order, all Products shall be delivered C.I.F. (Incoterms, 2000) to the
      Distributor's normal or designated point of shipment in the country of
      origin of the Products. Risk of loss of or damage to any consignment of
      the Products shall pass to the Distributor on delivery to the Distributor
      at the designated point of
delivery.

              

      

      

      
        	
                4.9

              	
                The
      standard conditions of sale of the Supplier as amended by the Supplier
      from time to time ("Standard Terms of Sale" under Schedule 3) shall apply
      to all sales of the Products to the Distributor pursuant to this Agreement
      despite the terms of any purchase order or other document the Distributor
      may from time to time specify in respect of any purchase. If and to the
      extent that any of the Standard Terms of Sale or any provision of
      Incoterms is inconsistent with any of the provisions of this Agreement,
      the latter shall prevail. The Supplier shall give to the Distributor
      notice in writing of any change in such standard conditions of sale not
      less than three months prior to such change taking effect for the purposes
      of this Agreement.

              

      

      

       

      5.           PAYMENT
FOR PRODUCTS

       

      
        	
                4.1

              	
                All
      Products to be supplied by the Supplier pursuant to this Agreement shall,
      unless otherwise agreed in writing in respect of a particular purchase
      order be sold on an C.I.F. (lncoterms, 2000) basis, and accordingly the
      Supplier shall, in addition to the price, be liable for arranging and
      paying (a) all costs of transport, insurance, freight, storage, Taxes
      (including value added Tax, goods and services Tax or similar) and (b) all
      fees, levies, charges and duties (including without limitation customs and
      import duties) which may be imposed by any Governmental Agency on the
      Products or their import, storage or
sale.

              

      

      

      
        	
                4.2

              	
                All
      payments under this Agreement or any sale and purchase of Products shall
      unless otherwise agreed in writing by the Parties be in Euros. All
      payments shall be made by the Distributor by transfer to such bank account
      as the Supplier may from time to time notify in writing to the
      Distributor.

              

      

      

      
        	
                4.3

              	
                The
      prices for all Products to be supplied hereunder shall be the Supplier's
      list prices from time to time (inclusive of packaging costs). Subject to
      this Clause 5.3, the Supplier's
shall:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                supply
      to the Distributor up to date copies of all price lists for the Products
      from time to time; and

              

      

       

       

       

      
        
          
          

        

        
          - 8
-

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 
      

              	
                (b)

              	
                give
      the Distributor not less than three months' notice in writing of any
      alteration in such list prices, and the prices as so altered shall apply
      to all Products which are the subject of Purchase Orders accepted after
      the date of the increase.

              

      

      

      
        	
                4.4

              	
                A
      deposit of thirty percent (30%) of the relevant list price for each order
      shall be payable by the Distributor at the time of placing the order, and
      the balance of the price shall be invoiced for payment on
      delivery.

              

      

      

      
        	
                4.5

              	
                If
      the Distributor fails to pay the price for any Products within 60 days
      after the date of the relevant invoice, the Supplier shall be entitled
      (without prejudice to any other right or remedy it may have)
      to:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                cancel
      or suspend any further delivery to the Distributor under any existing
      order;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                sell
      or otherwise dispose of any Products which are the subject of any order by
      the Distributor, whether or not appropriated thereto, and apply the
      proceeds of sale to the overdue payment;
and

              

      

      

      
        	
                 
      

              	
                (c)

              	
                charge
      the Distributor interest on the price at the prime rate of HSBC in force
      from time to time plus 1 per cent per annum from the date the payment
      became due until actual payment is made (irrespective of whether the date
      of payment is before or after any judgment or award in respect of the
      same).

              

      

      

      
        	
                4.6

              	
                The
      Supplier may take back possession of any Products for which the Supplier
      has not been paid in full by the due date, and may enter on the premises
      of the Distributor for that purpose. The Supplier may re-sell the
      repossessed Products and the Distributor shall pay to the Supplier the
      expenses of re-sale (including storage) and if the re-sale price is lower
      than the Invoice Amount at which the Products were sold to the
      Distributor, the Distributor shall pay the difference to the
      Supplier.

              

      

      

       

      6.           MARKETING
OF THE PRODUCTS

       

      
        	
                6.1

              	
                The
      Distributor shall use its best endeavours at its own expense to promote
      the sale of the Products throughout the Territory and to satisfy market
      demand for the Products.

              

      

      

      
        	
                6.2

              	
                The
      Distributor shall maintain such stocks of the Products as may be necessary
      to meet its customers' requirements and will permit the Supplier or its
      delegate, on reasonable notice, to conduct a stock take of Produet
      inventory at the Distributor's
premises.

              

      

      

      
        	
                6.3

              	
                The
      Distributor shall establish and maintain an adeqnate, skilled and properly
      trained sales and administration organization to fulfil its obligations
      under this Agreement.

              

      

      

      
        	
                6.4

              	
                In
      connection with the promotion and marketing of the Products the
      Distributor shall:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                make
      clear, in all dealings with customers and prospective customers, that it
      is acting as distributor of the Products and not as agent of the
      Supplier;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                comply
      with all legal requirements from time to time in force relating to the
      storage and sale of the Products;
and

              

      

      

      
        	
                 
      

              	
                (c)

              	
                use
      in relation to the Products only such advertising, promotional and selling
      materials as have been approved in advance in writing by the
      Supplier.

              

      

      

      
        	
                6.5

              	
                The
      Supplier shall procure that high quality translations into English are
      made and provided to the Distributor all instruction and operating manuals
      and all other written or diagrammatic documentation provided with the
      Products and all brochures, advertising, promotional and selling
      material.

              

      

       

       

       

      
        
          
          

        

        
          - 9
-

          
            

          

        

        
          
          

        

      

      
 

      
        	
                6.6

              	
                The
      Distributor shall:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                (if
      requested by customers or end-users) assist them with the installation of
      Products, and provide basic training and guidance on the proper operation
      of the Products;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                provide
      customers and end users with all operating and service instructions and
      safety notices in the form provided by the
  Supplier;

              

      

      

      
        	
                 
      

              	
                (c)

              	
                provide
      responses to enquiries from customers concerning Products and their
      operation and use.

              

      

      

      
        	
                6.7

              	
                The
      Distributor shall maintain a record of subject to compliance with and any
      restrictions under local Law, the name and address of each customer and
      the Products sold to such customer and shall on request provide full
      details of such records to the
Supplier.

              

      

      

      
        	
                6.8

              	
                The
      Supplier may modify or upgrade any Product from time to time and shall
      give the Distributor at least 30 days notice of implementation of any such
      modification or upgrade, together with the Supplier's then current price
      for sale of such modified Products. Except as required to meet Purchase
      Orders that have been accepted by the Supplier, the Supplier may but shall
      not be obliged to offer old models or versions of any Products for sale
      after giving notice of the introduction of modified or upgraded versions
      of such Products.

              

      

      

       

      7.           INSTALLATION,
MAINTENANCE AND SERVICE

       

      
        	
                7.1

              	
                The
      Distributor shall establish an adequate, skilled and properly trained
      service organization to provide necessary assistance to the Supplier to
      fulfil its obligations under this Agreement with respect to the
      Services.

              

      

      

      
        	
                7.2

              	
                The
      Supplier shall provide the Services in the
  Territory.

              

      

      

      
        	
                7.3

              	
                For
      the purposes of carrying out the Services, the Supplier shall establish at
      least one central Service centre in the Territory or in Belgium, to which
      customers shall be required to send all faulty or defective Products in
      the Territory for fault diagnosis.

              

      

      

      
        	
                7.4

              	
                As
      part of its Services, the Supplier shall provide warranty services on
      Products in line with the Supplier's warranty terms and conditions as set
      out in the Supplier's Standard Terms of
Sale.

              

      

      

      
        	
                7.5

              	
                The
      Distributor shall not carry out any Services, including but not limited to
      inspection, maintenance or repair services, to any of its customers. The
      Distributor shall not be entitled to any compensation from the Supplier
      and shall seek reasonable compensation directly from its customers for all
      unauthorized repair services rendered to its
  customers.

              

      

      

      
        	
                7.6

              	
                If
      a Product faults, the Distributor shall procure that the Product is sent
      to the Supplier (or its designated factory) for inspection, repair or
      replacement and the provisions of Clauses 7.9 and 7.10 shall
      apply.

              

      

      

      
        	
                7.7

              	
                In
      respect of warranty inspection, repair or replacement of
      Products:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                any
      Products sent by the Distributor to the Supplier (or its nominated
      manufacturer) for inspection, repair or replacement shall be delivered
      CI.F (Incoterms, 2000);

              

      

      

      
        	
                 
      

              	
                (b)

              	
                the
      Supplier shall be entitled to determine whether to repair, replace or pay
      the purchase cost of any faulty Product returned to
  it;

              

      

       

       

       

      
        
          
          

        

        
          - 10
-

          
            

          

        

        
          
          

        

      

       

      
 

      
        	
                 
      

              	
                (c)

              	
                any
      Products sent by the Supplier (or its nominated manufacturer) to the
      Distributor following inspection, replacement or repair shall be delivered
      C.l.F (lncoterms, 2000);

              

      

      

      
        	
                 
      

              	
                (d)

              	
                for
      the avoidance of doubt, the Supplier shall bear or compensate the
      Distributor for all costs of transport, insurance, freight, storage, Taxes
      (including value added Tax, goods and services Tax or similar) and all
      fees, levies, charges and duties (including without limitation customs and
      import 01' export duties) which may be imposed by any Governmental Agency
      in respect of (i) Products returned to the Supplier for inspection 01'
      repair and/or (Ii) Products ordered by the Distributor for use (iii)
      Products returned 01' delivered by the Supplier to the Distributor
      following repair 01' replacement by the
  Supplier.

              

      

      

      
        	
                7.8

              	
                The
      Distributor shall:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                maintain,
      at its own expense, suitable facilities (including the supply of
      appropriate materials, documentation, tools and spare parts), and
      sufficient and duly trained personnel, as may be necessary to actively and
      diligently provide assistance to the Supplier in order to perform the
      Services;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                notify
      the Supplier immediately of any incidents 01' accidents occurring in
      connection with your provision of the Services that results in injury or
      damage to persons or property;

              

      

      

      
        	
                 
      

              	
                (c)

              	
                permit
      the Supplier to perform periodic audits of the Distributor's business
      records as they pertain to the Services (including customer lists,
      Products and service history);

              

      

      

      
        	
                 
      

              	
                (e)

              	
                facilitate
      and assist with the Supplier's conduct of independent customer surveys in
      the Territory at any time at the Distributor's expense. The Distributor
      shall at its own expense carry out any corrective action which the
      Supplier identifies promptly upon the Supplier informing the
      Distributor.

              

      

      

      
        	
                7.9

              	
                The
      Distributor shall:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                deal
      promptly with any customer 01' end-user complaints concerning Products and
      take appropriate action to resolve such complaints in a diligent
      manner;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                maintain
      a record in reasonable detail of all complaints received concerning
      Products and the action taken to resolve or address such
      complaints.

              

      

      

      
        	
                7.10

              	
                The
      Distributor shall notify the Supplier promptly of any quality,
      reliability, safety 01' product liability matters affecting or which may
      reasonably be suspected of affecting any of the
  Products.

              

      

      

      
        	
                7.11

              	
                The
      Supplier shall:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                provide
      01' procure the provision of technical support to the Distributor for the
      provision of the Services, if and when required by the Distributor, and as
      may be deemed necessary by the
Supplier;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                provide
      further technical tra1l11l1g to the Distributor's personnel as may be
      agreed between the parties at the cost of the Distributor;
    and

              

      

      

      
        	
                 
      

              	
                (d)

              	
                make
      available to the Distributor, exclusively for its provISIon of the
      Services to Customers, any software and related documentation relating to
      the Products (the "Licensed Software Package") under licence by the
      Supplier or its affiliate upon the terms and conditions specified by the
      Supplier from time to time.

              

      

       

       

       

      
        
          
          

        

        
          - 11
-

          
            

          

        

        
          
          

        

      

       

       

      8.           REPORTS
AND RECORDS

       

      
        	
                8.1

              	
                The
      Distributor shall deliver to the Supplier within 30 days of the beginning
      of each quarter, six month rolling forecasts of sales, specifying all
      anticipated sales of Products distinguishing between sales for which
      Purchase Orders have been submitted to the Supplier and other anticipated
      sales.

              

      

      

      
        	
                8.2

              	
                The
      Distributor shall prepare a Sales Report and such other information as the
      Supplier may reasonably require.

              

      

      

      
        	
                8.3

              	
                The
      Distributor shall provide assistance to the Supplier to maintain a record
      of all Services undertaken.

              

      

      

      
        	
                8.4

              	
                The
      Distributor shall prepare a report in writing of all complaints of
      customers in respect of any Products and/or Services that are outstanding
      or that may reasonably be expected to give rise to potential liability on
      the part of the Distributor or the Supplier, such reports to give
      reasonable details of the complaint and action taken in respect ofthe
      complaint.

              

      

      

      
        	
                8.5

              	
                The
      Distributor shall at the Supplier's request, provide market and customer
      information relating to the marketing, sale, repair and service of
      Products and such other reports and information as the Supplier shall
      reasonably require.

              

      

      

      
        	
                8.6

              	
                The
      Distributor shall maintain and allow the Supplier and its advisers access
      to and the ability (at the Supplier's cost) to make copies of all proper
      accounting and other records relating to all transactions entered into by
      it for a period of 2 years. This Clause 8.6 shall survive the termination
      of this Agreement.

              

      

      

       

      9.           SUPPORT
AND TRAINING

       

      
        	
                9.1

              	
                The
      Supplier shall from time to time provide the Distributor with such
      instructions, labeling and regulatory matters and up to date information
      concerning the Products as the Supplier may consider appropriate or as the
      Distributor may reasonably require in such languages as the Supplier and
      Distributor shall agree in writing in order to assist the Distributor with
      the sale of the Products in the Territory, and the Supplier shall
      endeavour to answer as soon as practicable any technical enquiries
      concerning the Products which are made by the Distributor or its
      customers.

              

      

      

      
        	
                9.2

              	
                The
      Supplier shall provide an initial training course for employees of the
      Distributor as follows:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                The
      Supplier shall make available to the Distributor (for a period not
      exceeding 10 working days) the services of a suitably qualified technician
      of the Supplier or a manufacturer of the Products to provide training for
      the Distributor's sales and technical staff with respect to the
      functioning, proper operation and maintenance of the
    Products;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                The
      training course shall be held at the Distributor's principal service
      centre in the Territory or Supplier's office in
  Belgium;

              

      

      

      
        	
                 
      

              	
                (c)

              	
                All
      training will be conducted in English and any translation required will be
      provided by the Distributor at its own
cost;

              

      

      

      
        	
                 
      

              	
                (e)

              	
                Upon
      completing the sales or maintenance training course to the satisfaction of
      the Supplier, a participant may be certified by the Supplier as having
      completed such course.

              

      

      

      
        	
                9.3

              	
                The
      services to be provided by the Supplier under Clauses 9.1 and 9.2 shall be
      free of charge, but the Distributor shall remain liable for all salaries
      and other employment costs of, and all travelling, accommodation and other
      expenses incurred by, employees of the Distributor who are sent to the
      Supplier's premises at any time.

              

      

      
        
        

      

       

       

       

       

      
        
          
          

        

        
          - 12
-

          
            

          

        

        
          
          

        

      

       

       

      
        	
                9.4

              	
                The
      Supplier may provide additional training for employees of the Distributor
      or any Approved Sub-Distributor upon written request from the Distributor.
      Any such additional training shall be charged at the Supplier's then
      applicable rates.

              

      

       

      
        	
                9.5

              	
                In
      any case where employees of either party or its delegates visit the
      premises of the other for the purposes of this Agreement, the first
      mentioned party shall:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                procure
      that each such employee complies with all security, safety and other
      regulations which apply to or are in force at the other party's premises;
      and

              

      

      

      
        	
                 
      

              	
                (b)

              	
                indemnity
      the other party against any direct damage to property of the other party
      which is caused by any act or omission of any such employee at the other
      party's premises.

              

      

      

       

      10.           DISTRIBUTOR'S
GENERAL OBLIGATIONS

       

      
        	
                10.1

              	
                The
      Distributor shall:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                inform
      the Supplier of all Authorisations required from any Governmental Agency
      necessary for the marketing, importation, or sale of Products in the
      Territory or for the Supplier to conduct its business, and the Distributor
      shall apply for all such Authorisations (in the Supplier's name if
      requested by the Supplier) and keep them in effect for the Supplier's
      benefit and transfer them to the Supplier or its nominee on the Supplier's
      written request;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                inform
      the Supplier promptly of any Law, judgment, order, award, or determination
      of any court or arbitration or administrative tribunal or policy of any
      Governmental Agency that conflicts with any provision of this Agreement or
      that may result in any provision of this Agreement being or becoming
      unenforceable under the Laws of any jurisdiction in the
      Territory;

              

      

      

      
        	
                 
      

              	
                (c)

              	
                promptly
      inform the Distributor of any investigations, legal proceedings, and
      threats of legal proceedings against the Distributor or any Authorized
      Sub-Distributor and regularly update the Supplier with respect to such
      investigations or legal
proceedings;

              

      

      

      
        	
                 
      

              	
                (d)

              	
                store
      and transport the Products in accordance with the manufacturers'
      directions and the Supplier's reasonable requirements as notified from
      time to time and otherwise so as to prevent them from being damaged or
      adversely affected by heat, cold, moisture or
  otherwise;

              

      

      

      
        	
                 
      

              	
                (e)

              	
                permit
      the Supplier to inspect, audit and conduct a stock take of all Products
      held by the Distributor from time to
time;

              

      

      

      
        	
                 
      

              	
                (f)

              	
                exercise
      reasonable skill and care in performing its obligations under this
      Agreement;

              

      

      

      
        	
                 
      

              	
                (g)

              	
                not
      re-package or vary the packaging of the Products or obscure, remove, vary
      or interfere with in any way any label, marking or other indication on any
      Product or Material without the prior written consent of the
      Supplier;

              

      

      

      
        	
                 
      

              	
                (h)

              	
                keep
      the Products in its possession or under its control insured against fire,
      theft, storm, accident or other loss or damage for their full insurable
      value, and provide the Supplier with a certificate of insurance or copy of
      the policy on the Commencement Date and before each renewal
      date;

              

      

      

      
        	
                 
      

              	
                (i)

              	
                not
      sell any Products which to its knowledge are defective or could result in
      liability for Supplier; and

              

      

       

       

       

       

      
        
          
          

        

        
          - 13
-

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 
      

              	
                (j)

              	
                at
      the Supplier's request and expenses, make any necessary administrative
      arrangements in order to enable the Supplier's technical personnel to
      travel and stay in the Territory in order to perform the Supplier's
      obligations under this Agreement.

              

      

      

      
        	
                10.2

              	
                The
      Distributor represents and warrants that all information provided by it to
      the Supplier will be and will at all times remain true, accurate and not
      misleading.

              

      

      

      
        	
                10.3

              	
                Subject
      to the approval of the insurance company, both Parties shall obtain and
      keep in effect at its own expense throughout the Term and for 3 years
      after the termination of this Agreement a Product liability insurance with
      an insurance company of international repute, covering all direct and
      indirect claims related to or arising from the Products, including without
      limitation to defective, faulty workmanship, materials, components of the
      Products, and all sums which the Parties shall become legally liable to
      pay as damages or compensation in respect of accidental death or bodily
      injury of any person and/or accidental loss of or damage to property in
      the course of or in connection with the Parties' own business caused by or
      arising out of the Products. Such insurance shall require the Parties to
      receive not less than 60 days prior written notice of any cancellation or
      modification of such insurance coverage. Each Party shall look only to its
      own insurance coverage to cover any claim, loss, expense, and liability
      solely caused by its own failure to perform any of its obligations under
      this Agreement (such as, for illustrative purposes only, in the case of
      the Supplier any claim, loss, expense, and liability solely caused by the
      Supplier's design and manufacture of the Products; and in the case of the
      Distributor, any claim, loss, expense, and liability solely caused by the
      Distributor's distribution of the Products). Each Party's insurance (as
      required under this clause 10.3) shall contain waiver of subrogation
      provisions necessary to effectuate the Parties' intent in the preceding
      sentence. Both Parties shall provide each other with copies of all cover
      notes and policy documents relating to such insurance on receipt. All sums
      payable by the either Party under this Agreement shall be paid in full
      without set-off or counterclaim or any restriction or condition and free
      and clear of any Tax or other deductions or withholdings of any nature. If
      either Party or any other person is required by any Law or regulation to
      make any deduction or withholding (on account of Tax or otherwise) from
      any payment, either Party shall, together with such payment, pay such
      additional amount as will ensure that the other Party receives (free and
      clear of any Tax or other deductions or withholdings) the full amount
      which it would have received if no such deduction or withholding had been
      required. All Parties shall promptly forward to each other copies of
      official receipts or other evidence showing that the full amount of any
      such deduction or withholding has been paid over to the relevant taxation
      or other authority.

              

      

      

       

      11.           COMPLIANCE
WITH LAW

       

      
        	
                11.1

              	
                The
      Distributor shall at all times comply with all Laws and regulations
      applicable to it and shall conduct its business (a) in an ethical manner
      and (b) in accordance with any policies and guidelines on proper conduct
      issued from time to time by the
Supplier.

              

      

      

      
        	
                11.2

              	
                The
      Distributor shall not in relation to its business directly or indirectly,
      offer, pay, promise to pay, or authorise the payment of any money or
      anything of value to any local or foreign employee or official or any
      Governmental Agency for the purposes of influencing any act, omission or
      decision of such employee, official, or Governmental
    Agency.

              

      

      

      
        	
                11.3

              	
                The
      Distributor represents and warrants that at the date of this Agreement and
      throughout the Term, no shareholder, director, officer or employee of the
      Distributor is or will be an employee or official of any Governmental
      Agency.

              

      

      

      
        	
                11.4

              	
                The
      Supplier's obligations under this Agreement are subject at all times to
      all export administration and control Laws applicable to it and any
      manufacturer of any Products.

              

      

       

       

       

      
        
          
          

        

        
          - 14
-

          
            

          

        

        
          
          

        

      

       

       

      12.           INTELLECTUAL
PROPERTY

       

      
        	
                10.1

              	
                The
      Supplier authorises the Distributor to use the Intellectual Property in
      the Territory on or in relation to the Products during the Term or until
      termination of this Agreement to the extent needed for the operation of
      the distributorship granted under this Agreement but not for any greater
      extent or for any other purpose and, subject as provided in Clause 2 the
      Supplier shall not so authorise any other person, firm or company. The
      Supplier grants to the Distributor no other right to the Intellectual
      Property.

              

      

      

      
        	
                10.2

              	
                The
      Distributor shall ensure that each reference to and use of any of the
      Trade Marks by the Distributor is in a manner from time to time approved
      by the Supplier and accompanied by an acknowledgement, in a form approved
      by the Supplier, that the same is a trade mark (or registered trade mark)
      of the Supplier.

              

      

      

      
        	
                10.3

              	
                The
      Distributor must not use the name "ValiBio" in its corporate or business
      name.

              

      

      

      
        	
                10.4

              	
                The
      Distributor shall ensure that all Products sold by it shall have clearly
      marked on them a reference to the intellectual property rights of the
      Supplier.

              

      

      

      
        	
                10.5

              	
                The
      Distributor shall not:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                make
      any modifications to the Products or their labelling or
      packaging;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                alter,
      remove or tamper with any Trade Marks, service marks, trade names,
      numbers, or other means of identification used on or in relation to the
      Products;

              

      

      

      
        	
                 
      

              	
                (c)

              	
                use
      any of the Trade Marks, service marks or trade names in any way which
      might prejudice their distinctiveness or validity or the goodwill of the
      Supplier in them or otherwise than in accordance with any directions that
      the Supplier may give the Distributor concerning the use of such Trade
      Marks, service marks or trade
names;

              

      

      

      
        	
                 
      

              	
                (d)

              	
                permit
      any advertising or practice that may harm the good name, reputation, Trade
      Marks, or service marks of the Supplier or the reputation of the Products
      and will stop any advertising or practice that the Supplier notifies the
      Distributor that it believes will or may have that
  effect;

              

      

      

      
        	
                 
      

              	
                (e)

              	
                use
      in relation to the Products any trade marks or service marks other than
      the Trade Marks without obtaining the prior written consent of the
      Supplier; or

              

      

      

      
        	
                 
      

              	
                (f)

              	
                use
      in the Territory any trade marks, service marks or trade names so
      resembling any trade mark, service mark or trade name of the Supplier as
      to be likely to cause confusion or
deception.

              

      

      

      
        	
                10.6

              	
                The
      Distributor further undertakes that it
shall:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                not
      register any Intellectual Property;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                not
      amend the form of any Intellectual Property without the prior written
      consent of the Supplier (which consent may be withheld in the absolute
      discretion of the Supplier);

              

      

      

      
        	
                 
      

              	
                (c)

              	
                do
      everything needed to protect and maintain the Intellectual Property and
      not cause or permit to be done anything which may damage or endanger any
      of the Intellectual Property;

              

      

      

      
        	
                 
      

              	
                (d)

              	
                not
      use the Intellectual Property except in accordance with this Agreement (or
      any other agreement in writing between the parties relating to the
      Intellectual Property);

              

      

       

       

       

      
        
          
          

        

        
          - 15
-

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 
      

              	
                (e)

              	
                hold
      any goodwill generated by it from any use by it of the Intellectual
      Property as trustee for the
Supplier;

              

      

      

      
        	
                 
      

              	
                (f)

              	
                not
      distribute any copies of software Products to any third party unless such
      software Product is accompanied by a software license provided by the
      Supplier.

              

      

      

      
        	
                10.7

              	
                Except
      as provided in Clause 12.2 the Distributor shall have no rights in respect
      of any Trade Marks, service marks or trade names of or used by the
      Supplier in relation to the Products or of the goodwill associated
      therewith, and the Distributor hereby acknowledges that, except as
      expressly provided in this
Agreement:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                it
      shall not acquire any rights in respect of such Intellectual Property and
      that all such rights and goodwill are, and shall remain, vested in the
      Supplier; and

              

      

      

      
        	
                 
      

              	
                (b)

              	
                to
      the extent allowed by Law, any powers or rights conferred on authorized
      users under any relevant legislation are expressly
    excluded.

              

      

      

      
        	
                10.8

              	
                The
      Distributor shall, at the expense of the Supplier, take all such steps as
      the Supplier may reasonably require to assist the Supplier in maintaining
      the validity and enforceability of the Intellectual Property of the
      Supplier during the Term of this
Agreement.

              

      

      

      
        	
                10.9

              	
                The
      Distributor shall at the request of the Supplier execute such registered
      user agreements or licences in respect of the use of the Trade Marks,
      service marks or trade names in the Territory as the Supplier may
      reasonably require, provided that the provisions thereof shall not be more
      onerous or restrictive than the provisions of this
    Agreement.

              

      

      

      
        	
                10.10

              	
                The
      Distributor shall not do or authorise any third party to do any act which
      would or might invalidate or be inconsistent with any Intellectual
      Property of the Supplier and shall not omit or authorise any third party
      to omit to do any act which, by its omission, would have that effect or
      character.

              

      

      

      
        	
                10.11

              	
                The
      Distributor shall promptly and fully notify the Supplier of any actual,
      threatened or suspected infringement in the Territory of any Intellectual
      Property of the Supplier which comes to the Distributor's notice, and of
      any claim by any third party so coming to its notice that the importation
      or sale of the Products into or in the Territory, infringes any rights of
      any other person, and the Distributor shall at the request and expense of
      the Supplier do all such things as may be reasonably required to assist
      the Supplier in taking or resisting any proceedings in relation to any
      such infringement or claim.

              

      

      

      
        	
                10.12

              	
                If
      the Distributor's use of any Product in accordance with this document may
      infringe the intellectual property rights ofa third party, the Supplier
      may (but shall not be obliged to), at its own
  cost:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                recall
      any Product from the Distributor (or the Distributor's customers), modify
      it or replace any component of it, and return it, or deliver a replacement
      Product, to the Distributor (or the Distributor's customers);
      or

              

      

      

      
        	
                 
      

              	
                (b)

              	
                buy
      back any Product at Invoice Value from the Distributor or the
      Distributor's customers.

              

      

      

      
        	
                10.13

              	
                If
      any legal proceedings are brought or threatened against the Distributor
      for an alleged infringement of the intellectual property rights ofa third
      party, then the Supplier may at its own cost conduct the defense of such
      proceedings and may settle those proceedings on such terms as it shall in
      its sole and absolute discretion
determine.

              

      

       

       

       

       

      
        
          
          

        

        
          - 16
-

          
            

          

        

        
          
          

        

      

      
 

      13.           CONFIDENTIALITY

       

      
        	
                13.1

              	
                Except
      as provided by Clauses 13.2 and 1:1.,3, the Distributor shall at all times
      during the Term of this Agreement and after its
    termination:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                use
      its best endeavours to keep all Confidential Information confidential and
      accordingly not disclose any Confidential Information to any other person;
      and

              

      

      

      
        	
                 
      

              	
                (b)

              	
                not
      use any Confidential Information for any purpose other than the
      performance of its obligations under this
  Agreement.

              

      

      

      
        	
                13.2

              	
                Any
      Confidential Information may be disclosed by the Distributor
      to:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                any
      customers or prospective customers;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                any
      Governmental Agency or regulatory
body;

              

      

      

      
        	
                 
      

              	
                (c)

              	
                any
      Authorized Sub-Distributor; or

              

      

      

      
        	
                 
      

              	
                (d)

              	
                any
      employees of the Distributor or of any of the above
    persons,

              

      

      

      to such
extent only as is necessary for the purposes contemplated by this Agreement, or
as is required by Law and subject in each case to the Distributor using its best
endeavours to ensure that the person in question keeps the same confidential and
does not use the same except for the purposes for which the disclosure is
made.

      

      
        	
                13.3

              	
                If
      required by the Supplier, the Distributor will procure that personnel of
      the Distributor or any Authorized Sub-Distributors to whom Confidential
      Information is or has been disclosed, enter into confidentiality
      agreements undertaking in similar tenns to this Clause 13 in favour of the
      Supplier.

              

      

      

      
        	
                13.4

              	
                Any
      Confidential Information may be used by the Distributor for any purpose,
      or disclosed by the Distributor to any other person, to the extent only
      that:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                it
      is at the date hereof, or hereafter becomes, public knowledge through no
      fault of the Distributor or any Authorized Sub-Distributor or any of their
      respective employees (provided that in doing so the Distributor shall not
      disclose any Confidential Information which is not public knowledge);
      or

              

      

      

      
        	
                 
      

              	
                (b)

              	
                it
      can be shown by the Distributor, to the reasonable satisfaction of the
      Supplier, to have been known to it prior to its being disclosed by the
      Supplier to the Distributor.

              

      

      

      
        	
                13.5

              	
                On
      expiration or termination of this Agreement, the Distributor must
      immediately:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                deliver
      to the Supplier all documents and other materials containing, recording or
      referring to Confidential Information which are in its possession, power
      or control; and

              

      

      

      
        	
                 
      

              	
                (b)

              	
                ensure
      that any person who has received the Confidential Information by the
      Distributor's authority returns the Confidential Information (in any form
      in which it is held) to the
Supplier.

              

      

      

      
        	
                13.6

              	
                Each
      party must treat the existence and terms of this Agreement confidentially
      and no announcement or communication relating to the negotiations of the
      parties or the existence, subject matter or terms of this document may be
      made or authorised by a party:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                unless
      the other party has first given its written
  approval;

              

      

       

       

       

      
        
          
          

        

        
          - 17
-

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 
      

              	
                (b)

              	
                the
      disclosure is to the party's employees, consultants, professional
      advisers, bankers, financial advisers or financiers or to a person whose
      consent is required under this document or for a transaction contemplated
      by it and those persons undertake to keep confidential any information so
      disclosed; or

              

      

      

      
        	
                 
      

              	
                (c)

              	
                the
      disclosure is made to the extent reasonably needed to comply with any
      applicable Law or requirement of any Governmental Agency or regulatory
      body (including any relevant stock exchange or securities regulatory
      body).

              

      

      

      
        	
                13.7

              	
                The
      obligations imposed by this Clause 13 survive the termination of this
      Agreement.

              

      

      

       

      14.           REPRESENTATIONS
AND WARRANTIES

       

      
        	
                14.1

              	
                Each
      party represents and warrants that:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                it
      has full legal capacity and power to own its property and to carryon its
      business and to enter into and carry out the transactions contemplated by
      this Agreement;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                it
      has taken all corporate action that is necessary or desirable to authorise
      its entry into and its performance of the transactions contemplated by
      this Agreement;

              

      

      

      
        	
                 
      

              	
                (c)

              	
                it
      holds each Authorisation that is necessary or desirable to execute and
      perform the transactions contemplated by this Agreement and to enable it
      to properly carryon its business, and it is complying with any conditions
      to which any of such Authorisations is
subject;

              

      

      

      
        	
                 
      

              	
                (d)

              	
                this
      Agreement constitutes its legal, valid and binding obligations,
      enforceable against it in accordance with its terms (except to the extent
      limited by equitable principles and Laws affecting creditors' rights
      generally);

              

      

      

      
        	
                 
      

              	
                (e)

              	
                neither
      its execution nor its performance of this Agreement does or will
      contravene any Law to which it or any of its property is subject or any
      judgment, order, award, or determination of any court or arbitration or
      administrative tribunal or any policy of any Government Agency that is
      binding on it or any of its property, contravene any undertaking or
      instrument binding on it or any of its property, or contravene its
      constitution; and

              

      

      

      
        	
                 
      

              	
                (f)

              	
                no
      litigation, arbitration, mediation, conciliation or administrative
      proceedings are taking place, pending, or to the knowledge of any of its
      officers after due inquiry, threatened which, if adversely decided, could
      have a material adverse effect on its ability to perform its obligations
      under this document.

              

      

      

      
        	
                14.2

              	
                Subject
      as herein provided the Supplier warrants to the Distributor
      that:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                the
      Trade Marks (if any) are registered or are the subject of applications for
      registration in the name of the Supplier and that it has disclosed to the
      Distributor all trade marks and trade names used by the Supplier in
      relation to the Products at the date of this Agreement;
  and

              

      

      

      
        	
                 
      

              	
                (b)

              	
                it
      is not aware of any rights of any third party in the Territory which would
      or might render the sale of the Products, or the use of any of the Trade
      Marks on or in relation to the Products,
  unlawful.

              

      

      

       

       

       

      
        
          
          

        

        
          - 18
-

          
            

          

        

        
          
          

        

      

       

       

      15.           BREACH

       

      If the
Supplier has reasonable belief that the Distributor is in material breach of
this Agreement at any time, the Supplier shall be entitled:

      

      
        	
                 
      

              	
                (a)

              	
                upon
      written notice to the Distributor, to suspend the Supplier's performance
      of this Agreement or any transaction under this Agreement without
      liability to the Supplier or any third party;
  and/or

              

      

      

      
        	
                 
      

              	
                (b)

              	
                to
      conduct an audit of the Distributor's business to determine whether a
      breach has occurred, and for this purpose the Distributor shall cooperate
      with any such audit.

              

      

      

       

      16.           INDEMNITY

       

      
        	
                16.1

              	
                The
      Distributor shall indemnify the Supplier and the Supplier's officers,
      directors, employees and agents (for each of whom the Supplier holds the
      benefit of this indemnity upon trust) from any loss, damage, liability or
      expense (including without limitation reasonable legal fees and expenses)
      directly or indirectly arising out of or relating
  to:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                any
      representation or warranty made by the Distributor without the authority
      of the Supplier or which is not in accordance with the Standard Terms of
      Sale;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                any
      defective or improper provision of services in respect of the
      Products;

              

      

      

      
        	
                 
      

              	
                (c)

              	
                any
      provision by the Distributor or its agents of unauthorized repair services
      for Products;

              

      

      

      
        	
                 
      

              	
                (d)

              	
                any
      alteration of any instructions or operating manuals, labelling or
      packaging in respect of any Products that is not authorized in writing by
      the Supplier;

              

      

      

      
        	
                 
      

              	
                (e)

              	
                the
      Distributor's breach of or non-compliance with any of the Distributor's
      obligations under this Agreement (including without limitation a breach
      for which the Supplier terminates this
  Agreement);

              

      

      

      
        	
                 
      

              	
                (f)

              	
                use
      by the Distributor of third party spare parts, supplies or materials
      without the Supplier's prior written
consent;

              

      

      

      
        	
                 
      

              	
                (g)

              	
                the
      Supplier's termination of this Agreement for breach by the
      Distributor;

              

      

      

      
        	
                 
      

              	
                (h)

              	
                any
      negligence, wrongful act or omission, or breach of statutory duty by the
      Distributor or by its employees, contractors, officers or
      agents;

              

      

      

      
        	
                 
      

              	
                (i)

              	
                any
      violation of applicable Laws, judgments, orders, awards, or determinations
      of any court or arbitration or administrative tribunal in the Territory;
      or

              

      

      

      
        	
                 
      

              	
                (j)

              	
                any
      similar breach, act or omission as referred to in (a) through (i) above on
      the part of any Authorized Sub-Distributor or its respective employees,
      officers or agents.

              

      

      

      
        	
                16.2

              	
                The
      Supplier shall indemnifY the Distributor and the Distributor's officers,
      directors, employees and agents (for each of whom the Supplier holds the
      benefit of this indemnity upon trust) from any loss, damage, liability or
      expense (including without limitation reasonable legal fees and expenses)
      directly or indirectly arising out of or relating
  to:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                any
      breach of Supplier's representations and warranties or covenants contained
      herein;

              

      

       

       

       

      
        
          
          

        

        
          - 19
-

          
            

          

        

        
          
          

        

      

       

       

      
        	
                 
      

              	
                (b)

              	
                any
      actions by persons claiming ownership or other rights in the Products or
      the infringement of any patents and copyrights relating to the Products
      and any related packaging material and accompanying printed material where
      the content thereof has been specifically approved by the Supplier;
      and

              

      

      

      
        	
                 
      

              	
                (c)

              	
                any
      claims in the nature of product liability or defects inherent in the
      Products;

              

      

      

      provided
always that (i) notwithstanding the indemnification set forth in this Clause
16.2, Clause 7 of this Agreement, where applicable, shall exclusively govern the
Distributor's remedies directly against the Supplier (as opposed to any product
liability or other claims by a third party) regarding the matters set forth in
Clause 7 of this Agreement; and (ii) in the event that the Distributor becomes
aware of any action or claim of the type contemplated by Section 16.2(b) or (c)
the Distributor shall promptly notify the Supplier and agree to cooperate with
the Distributor in defending such action or claim, including if requested by the
Supplier, permitting the Supplier to assume responsibility for defending such
action or claim.

      

       

      17.           FORCE
MAJEURE

       

      
        	
                17.1

              	
                If
      either party is affected by Force Majeure it shall f0l1hwith notifY the
      other party of the nature and extent
thereof.

              

      

      

      
        	
                17.2

              	
                Neither
      party shall be deemed to be in breach of this Agreement, or otherwise be
      liable to the other, by reason of any delay in performance, or
      non-performance, of any of its obligations under this Agreement (not being
      a delay in payment) to the extent that such delay or non-performance is
      due to any Force Majeure of which it has notified the other party; and the
      time for performance of that obligation shall be extended
      accordingly.

              

      

      

      
        	
                17.3

              	
                If
      the Force Majeure in question prevails for a continuous period in excess
      of six months, the parties shall enter into bona fide discussions with a
      view to alleviating its effects, or to agreeing upon such alternative
      arrangements as may be fair and
reasonable.

              

      

      

       

      18.           TERMINATION

       

      
        	
                18.1

              	
                Either
      party shall be entitled to terminate this Agreement in accordance with
      Clause 3 (Term).

              

      

      

      
        	
                18.2

              	
                The
      Supplier shall be entitled to terminate this Agreement immediately upon
      notice to the Distributor if:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                the
      Distributor fails to comply fully with its obligations under Clauses 11.2
      and 12 or any clauses under them;
or

              

      

      

      
        	
                 
      

              	
                (b)

              	
                the
      Distributor fails to pay any sum due to the Supplier when due, and such
      failure to pay continues for 14 Business Days following written notice
      from the Supplier of such failure;
or

              

      

      

      
        	
                 
      

              	
                (c)

              	
                the
      Distributor commits any other breach of this Agreement or any breach under
      Clause 2.4, 2.6, 6.4(a) and 10 and, in the case of a breach capable of
      remedy, fails to remedy the same within 30 days after receipt of a written
      notice giving particulars of the breach and requiring it to be remedied;
      or

              

      

      

      
        	
                 
      

              	
                (d)

              	
                the
      Distributor at any time challenges the validity of any Intellectual
      Property of the Supplier;

              

      

      

      
        	
                 
      

              	
                (e)

              	
                the
      Distributor fails to sell any Products 12 months after the grant of all
      the necessary Authorisations of any government agent in the sovereign
      country; or

              

      

       

       

       

      
        
          
          

        

        
          - 20
-

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 
      

              	
                (f)

              	
                there
      is a Change in Control of the Distributor so that Control of the
      Distributor becomes exerciseable by either (a) a competitor ofthe
      Supplier, or (b) any corporation, company, partnership or other
      organisation or person in control of a company of the tobacco
      industry.

              

      

      

      
        	
                18.3

              	
                Either
      party shall be entitled forthwith to terminate this Agreement by written
      notice to the other if:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                a
      creditor takes possession of all or any part of the business or assets of
      that other party or other legal process is enforced against the business
      or any asset of the other party and is not discharged within 30 days of
      the judgement ;

              

      

      

      
        	
                 
      

              	
                (b)

              	
                a
      petition is presented or a proceeding is commenced or an order is made or
      an effective resolution is passed for the winding-up, insolvency,
      administration, reorganization, reconstruction, dissolution or bankruptcy
      of that other party or for the appointment of a liquidator, receiver,
      administrator, trustee or similar officer of that other party or of all or
      any part of its business or assets (except in each case for the purposes
      of amalgamation or reconstruction and in such manner that the company
      resulting therefrom effectively agrees to be bound by or assume the
      obligations imposed on that other party under this
    Agreement);

              

      

      

      
        	
                 
      

              	
                (c)

              	
                that
      other party stops or suspends payments to its creditors generally or is
      unable or admits its inability to pay its debts as they fall due or seeks
      to enter into any composition or other arrangement with its creditors or
      is declared or becomes bankrupt or
insolvent;

              

      

      

      
        	
                 
      

              	
                (d)

              	
                that
      other party ceases to carry on its
business;

              

      

      

      
        	
                 
      

              	
                (e)

              	
                anything
      analogous to any of the foregoing under the Law of any jurisdiction occurs
      in relation to that other party; or

              

      

      

      
        	
                 
      

              	
                (f)

              	
                any
      event which has an effect equivalent or similar to any of the above events
      occurs in relation to any person who Controls that other
      party.

              

      

      

      
        	
                18.4

              	
                For
      the purposes of Clause 18.2(c), a breach shall be considered capable of
      remedy if the Distributor can comply with the provision in question in all
      respects other than as to the time of performance (provided that time of
      performance is not of the essence).

              

      

      

      
        	
                18.5

              	
                Any
      waiver by either party of a breach of any provision of this Agreement
      shall not be considered as a waiver of any subsequent breach of the same
      or any other provision of this
Agreement.

              

      

      

      
        	
                18.6

              	
                The
      rights to terminate this Agreement given by this Clause 18 shall be
      without prejudice to any other right or remedy of either party in respect
      of the breach concerned (if any) or any other
  breach.

              

      

      

       

      19.           EFFECTS
OF TERMINATION

       

      
        	
                19.3

              	
                If
      either party gives notice in accordance with Clause 3,18.1, 18.2 or 18.3
      to terminate this Agreement, the Supplier may at any time after such
      notice is given (and despite this Agreement continuing in force during
      such notice period) appoint one or more persons as successor or
      replacement authorized distributors who may make themselves known as an
      authorized distributor of the Products in the Territory and may take
      orders for delivery of the Products after the date of expiry or
      termination of this Agreement.

              

      

      

      
        	
                19.3

              	
                Upon
      the termination of this Agreement for any
  reason:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                the
      Distributor shall promptly provide a list of its unsold inventory ("Unsold
      Inventory List") and such information as to its unsold inventory as the
      Supplier shall reasonably require;

              

      

       

       

       

      
        
          
          

        

        
          - 21
-

          
            

          

        

        
          
          

        

      

      
 

      
        	
                 
      

              	
                (b)

              	
                the
      Supplier shall be entitled (but not obliged) to repurchase from the
      Distributor all or part of any stocks of the Products then held by the
      Distributor at their original Invoice Value or the value at which they
      stand in the books of the Distributor, whichever is lower; provided
      that:

              

      

      

      
        	
                 
      

              	
                (i)

              	
                the
      Supplier shall be responsible for arranging and for the cost of, transport
      and insurance; and

              

      

      

      
        	
                 
      

              	
                (ii)

              	
                the
      Distributor may sell stocks of Products for which it has accepted orders
      from customers prior to the date of
termination,

              

      

      

      
        	
                 
      

              	
                (iii)

              	
                the
      Distributor may sell stocks of Products referred to on the Unsold
      Inventory List in respect of which the Supplier does not, by written
      notice given to the Distributor within 30 days after receipt of the Unsold
      Inventory List, exercise its right of repurchase, and for those purposes
      and to that extent the provisions of this Agreement shall continue in full
      force and effect;

              

      

      

      
        	
                 
      

              	
                (c)

              	
                the
      Distributor shall at its own expense within 30 days deliver to the
      Supplier (or if requested in writing by the Supplier, dispose of in
      accordance with the directions of the Supplier) all Confidential
      Information, all samples of the Products, all advertising, promotional or
      sales material relating to the Products, all sales records, price lists,
      lists of customers and end-users and other records and data relating to
      the Distributor's conduct of its business relating to the Products or the
      provision of the Services, then in the possession of the Distributor,
      which items shall upon such termination be considered the property of the
      Supplier;

              

      

      

      
        	
                 
      

              	
                (d)

              	
                outstanding
      unpaid invoices rendered by the Supplier in respect of the Products shall
      become immediately payable by the Distributor and invoices in respect of
      Products and ordered prior to termination but for which an invoice has not
      been submitted shall be payable in full immediately upon submission of the
      invoice;

              

      

      

      
        	
                 
      

              	
                (e)

              	
                the
      Distributor shall cease to promote, market or advertise the Products,
      provide the Services or make any use of the Trade Marks other than for the
      purpose of selling stock in accordance with Clauses 19.2(b)Oil or
      @;

              

      

      

      
        	
                 
      

              	
                (f)

              	
                the
      Distributor shall at its own expense Jom with the Supplier in procuring
      the cancellation of any registered user agreements in accordance with
      Clause 12.9;

              

      

      

      
        	
                 
      

              	
                (g)

              	
                the
      Distributor shall transfer, cancel or make available to the Supplier or
      its nominee, at the Supplier's request, all licences and approvals
      relating to the Products or Services granted in the name of the
      Distributor;

              

      

      

      
        	
                 
      

              	
                (h)

              	
                any
      acceptance by the Supplier of orders for Products or any sale of Products
      to the Distributor after the termination of this Agreement shall not be
      construed as an extension of this Agreement or waiver of termination, but
      in the absence of any further agreement between the parties, such
      transactions shall be governed by provisions identical to the terms of
      this Agreement; and

              

      

      

      
        	
                 
      

              	
                (i)

              	
                subject
      as otherwise provided herein and to any rights or obligations which have
      accrued prior to termination, neither party shall have any further
      obligation to the other under this
Agreement.

              

      

      

      
        	
                 
      

              	
                (j)

              	
                the
      Distributor shall promptly provide a list of its existing clients
      ("Existing Clients List") to the Supplier. The list must include all
      details information of the existing clients including but not limited to
      the contacts, history of sales records and the amount of
      orders.

              

      

      

      
        	
                19.3

              	
                The
      Supplier and the Distributor agree that, for a period of five years after
      Termination,

              

      

      
        
        

      

       

       

       

      
        
          
          

        

        
          - 22
-

          
            

          

        

        
          
          

        

      

       

       

      
        	
              	
                (a)

              	
                the
      Distributor shall be entitled to 5% of the sales price for each products,
      as described under Schedule 1, sold to the clients listed under the
      Existing Clients List;

              

      

      
 

      
        	
                 
      

              	
                (b)

              	
                the
      Supplier shall provide a financial report, for the year ending 31st March,
      regarding the sale of the Products sold to clients listed in the Existing
      Clients List to the Distributor and pay the amount according to Clause
      19.3(a) within 60 days after 31st
March;

              

      

      

      
        	
                 
      

              	
                (c)

              	
                Upon
      request of Distributor, the Supplier's auditor shall provide the
      Distributor a certified financial report, for the year ending 31 st March,
      regarding the sale of the Products sold to clients listed in the Existing
      Clients List.

              

      

      

      
        	
                19.4

              	
                To
      the maximum extent permitted by Law, other than as explicitly set forth in
      this Agreement and other than in a case of fraudulent misrepresentation or
      misconduct, the Supplier shall have no liability to the Distributor for
      the termination of this Agreement for any reason, whether for loss of
      profits, for any expenditure, investment, goodwill, or commitment in
      connection with the Distributor's business, or
  otherwise.

              

      

      

      
        	
                19.4.1.

              	
                The
      provisions of Clause 2.6(b) shall continue to apply for a period of I year
      after the date of termination.

              

      

      

      
        	
                19.5

              	
                The
      termination of this Agreement shall not affect the rights and obligations
      of the parties under Clauses 8, 10, 12, 11 which shall survive such
      termination and remain in full force and
effect.

              

      

      

       

      20.           NOTICES

       

      
        	
                20.1

              	
                Each
      notice, demand or other communication given or made under this Agreement
      shall be in writing and delivered or sent to the relevant party
      personally, by courier, by certified or registered mail (airmail if sent
      overseas) with return receipt requested, or by facsimile at the following
      addresses or facsimile numbers (or such other address or facsimile number
      as the addressee has by 14 days prior written notice specified to the
      other party):

              

      

      

      
        

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                	 	To
      the Supplier:	25 Avenue
      Georges Lemaitre 
	 	 
      	
                                                        6041
      Gosselies

                                                      
	 	 
      	
                                                        Belgium

                                                      
	 	 
      	
                                                        Fax
      Number

                                                      
	 	 
      	
                                                        Attention:  Chief
      Executive

                                                      
	 	 
      	 
      
	 	 
      	 
      
	 	
                                                        To
      the Distributor:

                                                      	
                                                        BIOFIELD
      CORP.

                                                      
	 	 
      	
                                                        1615
      Walnut Street, 3rd
      Floor

                                                      
	 	 
      	
                                                        Philadelphia,
      PA 19102 USA

                                                      
	 	 
      	
                                                        Attention:  David
      Bruce Hong

                                                      
	 	
                                                        Also
      copy to:

                                                      	
                                                        The
      Mackay Holdings Limited

                                                      
	 	 
      	
                                                        3412,
      China Merchants Tower,

                                                      
	 	 
      	
                                                        168-200
      Connaught Road,

                                                      
	 	 
      	
                                                        Sheung
      Wan, Hong Kong

                                                      
	 	 
      	
                                                        Fax
      Number:   (852) 2549
0689

                                                      

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

       

       

      
        
          
          

        

        
          - 23
-

          
            

          

        

        
          
          

        

      

       

      
        
          	 
      	
                  Attention:   
      David Bruce Hong

                
	 
      	
                  Email:

                

        

      Any
notice, demand or other communication so addressed to the relevant party shall
be deemed to have been delivered for the purposes of this Agreement (I) if given
or made by letter, when actually delivered to the relevant address, or (ii) if
given by facsimile at the time of transmission, provided that the sending party
shall have obtained electronic or other confirmation of accurate and complete
transmission.

      

       

      21.           MISCELLANEOUS

       

      
        	
                21.1

              	
                The
      Supplier shall be entitled to perform any of the obligations undertaken by
      it and to exercise any of the rights granted to it under this Agreement
      through any other company which at the relevant time Controls, is under
      the Control of or is under common Control with the Supplier and any act or
      omission of any such company shall for the purposes of this Agreement be
      deemed to be the act or omission of the
  Supplier.

              

      

      

      
        	
                21.2

              	
                The
      Supplier may assign this Agreement and its rights and obligations under
      this Agreement. Specifically, but without limitation, the Supplier may
      nominate an Affiliate of the Supplier, (the "Nominee") to assume the role
      of the Supplier, in which event the Distributor shall, if required in
      writing by the Supplier, join with the Supplier in entering into a
      novation agreement whereby (a) the Nominee shall assume all rights and
      obligations of the Supplier under this Agreement, (b) the Distributor
      shall release the Supplier from its obligations under this Agreement and
      (c) the governing law and jurisdiction provisions of this Agreement shall
      if required by the Nominee be changed to the jurisdiction of incorporation
      of the Nominee and (d) such other amendments shall be made to this
      Agreement as the Nominee may reasonably request, and the Distributor
      further agrees to enter into such other licenses or other agreements with
      the Nominee or Affiliates of the Nominee as the Supplier may reasonably
      request to reflect any restructuring of ownership and other rights
      relating to the Intellectual Property. Upon execution of such novation
      agreement, all references to the Supplier in this Agreement (except as
      expressly provided for in the novation agreement) shall be deemed to be
      references to the Nominee.

              

      

      

      
        	
                21.3

              	
                This
      Agreement is personal to the Distributor, which may not without the
      written consent of the Supplier, assign, mortgage, charge (otherwise than
      by floating charge) or dispose of any of its rights, or sub-contract or
      otherwise delegate any of its obligations, under this
      Agreement.

              

      

      

      
        	
                21.4

              	
                Subject
      as provided in Clause 5.3, nothing in this Agreement shall create, or be
      deemed to create, a partnership or the relationship of principal and agent
      or employer and employee between the
parties.

              

      

      

      
        	
                21.5

              	
                Each
      party acknowledges that, in entering into this Agreement, it does not do
      so on the basis of, and does not rely on, any representation, warranty or
      other provision except as expressly provided in this Agreement, and all
      conditions, warranties or other terms implied by statute or common law are
      hereby excluded to the fullest extent permitted by
  Law.

              

      

      

      
        	
                21.6

              	
                Unless
      otherwise agreed in writing by the parties, Euros shall be the currency of
      account and of payment in respect of sums payable under this Agreement. If
      an amount is received in another currency, pursuant to a judgment or order
      or in the liquidation of the Distributor or otherwise, the Distributor's
      obligations under this Agreement shall be discharged only to the extent
      that the Supplier may purchase Euros with such other currency in
      accordance with normal banking procedures upon receipt of such amount. If
      the amount in Euros which may be so purchased, after deducting any costs
      of exchange and any other related costs, is less than the relevant sum
      payable under this Agreement, the Distributor shall indemnify the Supplier
      against the shortfall. This indemnity shall be an obligation of the
      Distributor independent of and in addition to its other obligations under
      this Agreement and shall take effect notwithstanding any time or other
      concession granted to the Distributor or any judgment or order being
      obtained or the filing of any claim in the liquidation, dissolution or
      bankruptcy (or analogous process) of the
  Distributor.

              

      

      
        
        

      

       

       

       

      
        
          
          

        

        
          - 24
-

          
            

          

        

        
          
          

        

      

       

      
        	
                21.7

              	
                No
      amendment or variation of this Agreement shall be effective unless made in
      writing and signed by or on behalf of each of the parties except that the
      Supplier may, in its sole and absolute discretion from time to
      time:

              

         

      

      
        	
                 
      

              	
                (a)

              	
                amend
      the Standard Terms of Sale; and

              

      

      

      
        	
                 
      

              	
                (b)

              	
                amend
      any policy statements and codes of conduct issued by it from time to
      time.

              

      

      

      
        	
                21.8

              	
                The
      parties acknowledge and agree that despite any other rights a party may
      have under this Agreement or otherwise, damages will not be sufficient
      remedy for breach of this Agreement and that the non-breaching party will
      be entitled to specific performance as a remedy for any such breach and
      any temporary measure in the form of a court order for an injunction, as
      the case may be.

              

      

      

      
        	
                21.9

              	
                No
      failure or delay by a party in exercising a right under this Agreement
      shall impair such right or operate as a waiver of such right, nor shall
      any single or partial exercise of any such right preclude any further
      exercise of such right or the exercise of any other right. The rights
      provided for in this Agreement are cumulative and do not exclude any other
      rights provided by Law.

              

      

      

      
        	
                21.10

              	
                This
      Agreement (and the documents incorporated by reference or otherwise
      referred to in it, including without limitation, the Standard Terms of
      Sale, which shall be binding on the Distributor) constitute the entire
      agreement between the parties in respect of its subject matter and
      replaces all previous oral or written agreements, understandings and
      communications of the parties as to such subject
  matter.

              

      

      

      
        	
                21.11

              	
                If
      any provision of this Agreement is or becomes illegal, invalid or
      unenforceable in any respect under the Law of any jurisdiction, that shall
      not affect or impair:

              

      

      

      
        	
                 
      

              	
                (a)

              	
                the
      legality, validity or enforceability in that jurisdiction of any other
      provision of this  Agreement;
or

              

      

      

      
        	
                 
      

              	
                (b)

              	
                the
      legality, validity or enforceability under the Law of any other
      jurisdiction of that or  any other provision of this
      Agreement.

              

      

      

      If any
illegal, invalid or unenforceable provision would be legal, valid or enforceable
in a jurisdiction if some pmt of it were modified, that provision shall be
modified as necessary to give effect to the commercial intention of the parties
or if that is not possible, severed from this Agreement so that the validity and
enforceability of the rest of the Agreement, or the validity of the provision in
question in any other jurisdiction, is not affected.

      

      
        	
                21.12

              	
                If
      this Agreement is translated into any language other than English, the
      English language text shall
prevail.

              

      

      

      
        	
                21.13

              	
                This
      Agreement may be executed in counterparts. Each counterpart shall
      constitute an original of this Agreement, but all the counterparts
      together shall constitute one and the same
  instrument.

              

      

      

       

      
        	
                22.

              	
                DISPUTE
      RESOLUTION

              

      

       

      This
Agreement is governed by and shall be construed in accordance with the laws of
Hong Kong. Any dispute or controversy arising out of or in connection with this
Agreement shall be settled in arbitration in Hong Kong in accordance with the
arbitration rules of the Hong Kong International Arbitration Center, provided
that each Party shall bear its own costs in the arbitration, regardless of

      
        
           

        

        
          - 25
-

          
            

          

        

        
           

        

      

       

      
      

       

      
        	 	whether it prevails
      in the arbitration or not. The award shall be final and binding upon
      the parties and may be entered into by a competent court of
      jurisdiction.

      

       

       

      
        EXECUTED and delivered by the
Parties or their duly authorized officers on the day and year first written
above.

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
        
          
          

        

        
          - 26
-

          
            

          

        

        
          
          

        

      

       

       

      SCHEDULE
1

       

      The
Products

      

      

      All
Products manufactured from time to time by or for the Supplier which (a) are
used for cancer diagnostic purposes, and (b) use technology licensed to the
Supplier for Hypergenomics, Nucleosomics and HPY and including specifically at
the date of this Agreement, HPY diagnostic kits.

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
 

      
        
           

        

        
          - 27
-

          
            

          

        

        
           

        

      

       

      SCHEDULE
2

       

      Trade
Marks & Patents and Regulatory approvals

      

      

      Patent
Licence (Cronas Therapeutics) W0200SI019826

      Patent
Licence (ValiRx) W02002GB03080

       

       

       

       

       

       

       

       

       

       

       

       

       

      
 

      
        
           

        

        
          - 28
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      SCHEDULE
3

       

      Terms
& Condition

      

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
 

      
        
           

        

        
          - 29
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                SIGNED
      by

                for
      and on behalf of

                ValiBio
      SA

                 

                 

              	
                )

                )

                )

                )

                )

                )

              	 
      
	
                By:

              	 
      
	
                Date:

              	 
      	 
      	
                Its:

              	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                In
      the presence of:

              	 
      	 
      
	 
      	 
      
	
                SIGNED
      by

                for
      and on behalf of BIOFIELD CORP.

                 

                in
      the presence of

              	
                )

                )

                )

                )

                )

                )

              	 
      
	 
      	
                By:

              	 
      
	
                Date:

              	 
      	 
      	
                Its:

              	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                In
      the presence of:

              	 
      	 
      
	 
      
	
                Acknowledged
      by and consented 

                to
      for and on behalf of VALIRX 

                PLC.,
      as the owner or holder of 

                Patent
      License (ValliRx)

                W02002GB03080

              	
                )

                )

                )

                )

              	 
      	 
      
	 
      	 
      	 
      	 
      
	
                Acknowledged
      by and consented 

                to
      for and on behalf of CRONOS 

                THERAPEUTICS,
      as the owner or 

                holder
      of Patent License (Cronos Therapeutics)

                W0200SI019826

              	
                )

                )

                )

                )

              	 
      	 
      

      

      

      

      

      

      
        
           

        

        
          - 30
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