Yao (YinCare) Reseller Policy

RESELLER AND DISTRIBUTOR
MINIMUM ADVERTISING PRICING POLICY

YAO COMPANY
303-777-7825 FAX: 303-777-7835
1305 South Washington Street, Denver, Colorado 80210

To Our Valued Customers:

To ensure practitioner exclusivity, set reasonable margins for all licensed health care practitioner resellers ("Resellers") and Distributors selling directly to practitioners, and help the company and its Resellers compete effectively in the market while preserving the practitioner-patient relationship, YAO Company ("YAO" or “Company”), effective April 1, 2018, has adopted the Unilateral Minimum Advertised Pricing ("MAP") Policy enclosed with this letter, which is applicable to each Reseller and Distributor receiving the MAP Policy. It sets a MAP for all Products covered by the MAP Policy.

As of April 1, 2018, the MAP Policy covers the Products. Orders placed before April 1, 2018 will be honored pursuant to the terms previously agreed upon. Orders placed after April 1, 2018 will be effective only if in compliance with the MAP Policy. This letter is intended to introduce the terms and conditions of the MAP Policy. All questions or requests for additional information regarding the MAP Policy or submissions of information regarding potential violations of the MAP Policy (which must be in writing) are to be addressed only to the MAP Policy Administrator by fax or email or by mail to: Attn: MAP Policy Administrator. The MAP Policy Administrator is the only person authorized by YAO to answer questions regarding the MAP Policy.

Minimum Advertising Pricing Policy

1. YAO’s MAP policy requires a 100% markup over wholesale pricing.

2. The purpose of the MAP is to create a minimum advertising pricing policy for all of Company’s Products to be used by all Resellers and Distributors.

3. The MAP Policy does not establish maximum advertised prices. Company products may be offered at any price in excess of the MAP.

4. The Internet site(s) from which sales must be made under the MAP Policy must be approved by the Company in writing prior to the offering for sale or sale of any Company product. The Company authorizes approved Company products ordered in accordance with this MAP to be offered for sale at the approved Internet sites solely for resale to patients with whom the Reseller has an established practitioner-patient relationship. Any new Internet sites or material changes to these websites must be approved in writing by the Company. For Distributors, the Company authorizes approved Company products ordered in accordance with this MAP to be offered for sale at the approved Internet sites solely for resale to practitioners with whom the Distributor has verified the practitioner’s licensure. The Company reserves the right to audit, at any time, the Distributor’s records to ensure it has verified a practitioner’s license.

5. Resellers and Distributors remain free to sell these products at any prices they choose as long as the sale price meets the MAP.

6. This MAP Policy is solely within the Company's discretion and authority acting through the duly authorized managers of the Company. No employee or sales representative of the Company has any authority to discuss, modify or grant exceptions to this MAP Policy. Any representation or action by any employee, sales representative or persons not specifically authorized to discuss, modify or grant exceptions to this MAP Policy under this paragraph is unauthorized and invalid. All questions about this MAP Policy should be in writing and directed via U.S. Mail or email to:

MAP Policy Administrator
YAO Company
1305 S. Washington Street
Denver, Colorado 80210
ministeroftheinterior@yaocompany.com

The MAP Policy Administrator will respond only in writing; no oral communications about this MAP Policy are authorized. The MAP Policy Administrator shall be solely responsible for determining whether a violation of the Policy has occurred, communicating decisions to Resellers or Distributors regarding the policy and receiving any communications regarding sanctions imposed under this MAP Policy. Any action taken by the Company under this MAP Policy shall be without liability to the Company.

7. From time to time, the Company may choose to offer special promotions on certain products. In such an event, the Company reserves the right to modify or suspend this MAP Policy in whole or in part by notifying all Resellers and Distributors of the duration and nature of the change. The Company further reserves the right to adjust the MAP with respect to all or certain products at its sole discretion. Such changes shall apply equally to all Resellers and Distributors.

8. As part of the Company's monitoring of this MAP Policy, the Company and its authorized agents may, from time to time, utilize a range of human and computer technologies to monitor the pricing and placement of Company products across the Internet. This monitoring may include, without limitation, visiting the website(s) of any Reseller and/or tracking compliance with the MAP Policy by any Reseller or Distributor. Any attempt by a Reseller or Distributor to redirect, mask, or otherwise interfere, in any way, with these monitoring efforts or any other enforcement of the MAP Policy will be considered an express violation of the MAP Policy.

9. Failure to abide by this MAP Policy may result in sanctions unilaterally imposed by the Company. The level of sanctions will be determined by the Company in its sole discretion and may include termination of a Reseller's or Distributor’s right to sell the Company's products if a Reseller or Distributor is found in violation of the MAP Policy. Resellers and Distributors are solely responsible for compliance with the MAP Policy and their affiliates' compliance with the MAP Policy. If any location within a Reseller's organization violates any component of the MAP Policy, sanctions may be unilaterally imposed upon the entire organization of the Reseller. Additionally, if a Reseller knowingly sells Company products to MAP Policy violators, Reseller may unilaterally have its authorization to purchase and resell. Company products revoked.

10. Company need not provide prior notice or issue warnings before taking any action under this MAP Policy.

11. Distributors of the Company's products shall supply a copy of this MAP Policy to any new or existing Resellers for their records. In connection with the Company’s compliance efforts, the Company reserves the right to audit Distributor’s at any time to ensure a copy of the MAP has been provided to Resellers.

12. The terms of this MAP Policy are confidential and should not be disclosed to other parties.

PRODUCT RESELLER AND DISTRIBUTOR AGREEMENT
TERMS AND CONDITIONS

PRODUCT RESELLER AND DISTRIBUTOR AGREEMENT

This Product Reseller and Distributor Agreement (the "Agreement"), effective as of the last date set forth on the signature page to this Agreement, is entered into by and between YAO Company, a Colorado corporation having its principal place of business at 1305 S. Washington Street, Denver, Colorado 80210 ("Supplier"), and anyone purchasing on Goldenneedleonline.com with intentions of reselling the product. (known hereafter as "Reseller" or “Distributor” as applicable):

RECITALS

Supplier and Reseller/Distributor may be collectively referred to as the "Parties", or may be each singularly referred to as a "Party"). Supplier is in the business of manufacturing and selling the nutritional products and supplements ("Products"); Reseller is a licensed health care provider which is also in the business of marketing and reselling products that are similar in kind and quality to the Products; Distributor is also in the business of marketing and reselling products to licensed practitioners that are similar in kind and quality to the Products; Reseller/Distributor wishes to purchase the Products from Supplier and resell these Products to End Users (as defined below), subject to the terms and conditions of this Agreement; and Supplier wishes to sell the Products to Reseller/Distributor and appoint Reseller/Distributor as a non-exclusive reseller under the terms and conditions of this Agreement.

AGREEMENT

1. Definitions

"Effective Date" means the last date set forth on the signature page to this Agreement. "End User" means the final purchaser that (a) has acquired a Product from Reseller For its own internal use and not for resale, remarketing or distribution. "Intellectual Property Rights" means all industrial and other intellectual property rights comprising or relating to: (a) Patents; (b) Trademarks; (c) internet domain names, whether or not Trademarks, registered by any authorized private registrar or Governmental Authority, web addresses, web pages, website and URLs; (d) works of authorship, expressions, designs and design registrations, whether or not copyrightable, including copyrights and copyrightable works, data, data files, and databases and other specifications and documentation; (e) Trade Secrets; and (f) all rights, interests and protections that are associated with, equivalent or similar to, or required for the exercise of, any of the foregoing, however arising, in each case whether registered or unregistered and including all registrations and applications for, and renewals or extensions of, these rights or forms of protection under the Laws of any jurisdiction throughout in any part of the world. "Law" means any statute, law, ordinance, regulation, rule, code, constitution, treaty, common law, Governmental Order or other requirement or rule of law of any Governmental Authority. "Notice" has the meaning set out in Section 12.3. "Notify" means to give Notice as specified in this Agreement. "Products" means those items produced by Supplier and selected for purchase by Reseller/Distributor. "Representatives" means a Party's affiliates, employees, officers, directors, principals, members, officers, partners, shareholders, agents, attorneys, third-party advisors, successors and permitted assigns. "Supplier's Intellectual Property Rights" means all Intellectual Property Rights owned by or licensed to Supplier. "Term" has the meaning set out in Section 7 of this Agreement. "Trademarks" means all rights in and to US and foreign trademarks, service marks, trade names, brand names, logos, trade dress, corporate names and domain names and other similar designations of source, sponsorship, association or origin, together with the goodwill symbolized by any of the foregoing, in each case whether registered or unregistered and including all registrations and applications for, and renewals or extensions of, these rights and all similar or equivalent rights or forms of protection in any part of the world. "Trade Secrets" means the whole or any portion or phase of any scientific or technical information, design, process, procedure, formula, improvement, confidential business or financial information, listing of names, addresses, or telephone numbers, or other information relating to any business or profession which is secret and of value or as otherwise defined by Colorado law.

2. Appointment as a Reseller

2.1 Non-Exclusive Appointment (Resellers). Supplier hereby appoints Reseller, and Reseller accepts the appointment, to act as a non-exclusive reseller of Products to End Users during the Term of this Agreement, solely in accordance with the terms and conditions of this Agreement. Supplier may, in its sole discretion, sell the Products to any other Person or entity. Non-Exclusive Appointment (Distributors). Supplier hereby appoints Distributor, and Distributor accepts the appointment, to act as a non-exclusive distributor of Products to licensed practitioners during the Term of this Agreement, solely in accordance with the terms and conditions of this Agreement. Supplier may, in its sole discretion, sell the Products to any other Person or entity.

2.2 Status as an Independent Contractor. The relationship between Supplier and Reseller/Distributor is solely that of vendor and vendee. Nothing in this Agreement creates any agency, joint venture, partnership, or other form of joint enterprise, employment or fiduciary relationship between the Parties or an employee/employer relationship. Reseller/Distributor is an independent contractor under this Agreement. Neither Party has any express or implied right or authority to assume or create any obligations on behalf of or in the name of the other Party or to bind the other Party to any contract, agreement, or undertaking with any third party.

2.3 Right to Sell Competitive Products. This Agreement does not preclude either Party from entering into an agreement with any other third party (a "Competitive Transaction") related to the sale or distribution of other goods or products that are similar to or competitive with the Products.

3. No Franchise or Business Opportunity Agreement

3.1 No Franchise or Business Opportunity Agreement. The Parties acknowledge and agree this Agreement is not a franchise or business opportunity agreement and does not create a franchise or business opportunity relationship between the Parties. If any provision of this Agreement is deemed to create a franchise or business opportunity relationship between the Parties, then Supplier shall have the sole discretion to immediately terminate this Agreement or negotiation with Reseller/Distributor in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated by this Agreement be consummated as a reseller agreement and not a franchise or business opportunity agreement.

4. Terms of Agreement Prevail Over Terms of Purchase Orders or Online

Orders

4.1 Terms of Agreement Prevail Over Reseller's Purchase Order. This Agreement is expressly limited to the terms of this Agreement and any Purchase Order or Online Transaction Terms contained in the applicable Purchase Order or Online Orders. The terms of this Agreement shall prevail over any terms or conditions contained in any other documentation related to the subject matter of this Agreement, and expressly exclude any of Reseller's/Distributor’s general terms and conditions contained in any Purchase Order, Online Orders or other documents issued by Reseller/Distributor.

5. General Reseller/Distributor Performance Obligations

5.1 Marketing and Reselling/Distributing Products. Reseller shall, in good faith and at its own expense:

5.1.1 Know and abide by all laws and regulations of the specific jurisdiction(s) in which Reseller/Distributor sells or distributes the Products, including all laws and regulations pertaining to dietary supplement labeling (GMO, California Prop. 65, Age-restrictions, etc.), marketing, and regulations specific to individual ingredients for each product.

5.1.2 Observe all directions and instructions given to it by Supplier in relation to the marketing, advertisement and promotion of the Products, including Supplier's sales, marketing, and merchandising policies as they currently exist or as they may be changed by Supplier in the future, to the extent that these marketing materials, advertisements, or promotions refer to the Products or otherwise use Supplier's Trademarks.

5.1.3 In any and all contact between Reseller and any End User or Distributor and Reseller, Reseller and Distributor must identify themselves by full legal name, trade name, or both and not as the Supplier.

5.1.4 Market, advertise, promote, and resell Products and conduct business in a matter that reflects favorably at all times on Products and the good name, goodwill, and reputation of Supplier.

5.1.5 Promptly Notify Supplier of (and address and investigate, if appropriate) any complaint or adverse claim about any Product or its use of which Reseller/Distributor becomes aware; provided that nothing in this Agreement requires or authorizes Reseller/Distributor to reveal proprietary pricing information.

5.1.6 Upon reasonable request by Supplier, provide Supplier with a current and accurate list of all of its selling locations or outlets.

5.2 Reporting and Recordkeeping. Reseller/Distributor shall, in good faith and at its own expense:

5.2.1 Within thirty (30) days after the request of Supplier, which request shall only be made in the event Supplier has a good-faith belief that Reseller/Distributor has engaged or is engaging in conduct prohibited by Section 5.5 of this Agreement, submit to Supplier complete and accurate reports of inventory and sales of the Products in a computer-readable format acceptable to Supplier.

5.2.2 Maintain books, records, and accounts of all transactions and activities covered by this Agreement, and permit review of such books, records, and accounts by Supplier and its Representatives upon reasonable request, which request shall only be made in the event Supplier has a good-faith belief that Reseller/Distributor has engaged or is engaging in conduct prohibited by Section 5.5 of this Agreement.

5.2.3 Provide Supplier with copies of Reseller's current and unrestricted license(s) to provide healthcare services of the type which Reseller is qualified and licensed to provide. Distributors shall provide Supplier with copies of Reseller’s licenses of the type of healthcare services which Reseller is licensed to provide.

5.3 Authority to Perform Under this Agreement. Reseller/Distributor shall, at its own expense, obtain and maintain required certifications, credentials, licenses, and permits as necessary to conduct business in accordance with this Agreement and as required by all state and federal law.

5.4 Government Approval. If at any time during the Term any notification, registration or approval is required to give legal effect, in any applicable jurisdiction, to this Agreement or the transactions contemplated by this Agreement, Reseller/Distributor shall:

5.4.1 Immediately take whatever steps may be necessary to properly notify, register, or obtain appropriate approval.

5.4.2 Be responsible for any charges incurred in connection with notifying, registering, or obtaining such approval(s).

5.4.3 Keep Supplier informed of its efforts regarding this Section.

5.5 Prohibited Acts. Notwithstanding anything to the contrary in this Agreement, neither Reseller/Distributor shall:

5.5.1 Make any representations, warranties, guarantees, indemnities, similar claims, or other commitments actually, apparently, or ostensibly on behalf of Supplier, or to any End User, or to any Reseller in the case of a Distributor, regarding the Products, which representations, warranties, guarantees, indemnities, similar claims or other commitments are in addition to or inconsistent with any then-existing representations, warranties, guarantees, indemnities, similar claims, or other commitments in this Agreement or any written documentation provided by Supplier to Reseller/Distributor.

5.5.2 Engage in any unfair, competitive, misleading, or deceptive practices regarding Supplier, Supplier's Trademarks, or the Products, including any product disparagement or "bait-and-switch" practices or any other practices which violate state or federal consumer protection laws.

5.5.3 Sell, either directly or indirectly, or assign or transfer in any way, any Products to any person (or entity) when Reseller/Distributor knows or has reason to suspect that the person (or entity) may resell any or all of the Products to a third party, including any third-party reseller or distributor.

5.5.4 Sell Products to any person in quantities or unit volumes which are inappropriate for individual use.

5.5.5 Sell Products via any third-party-facilitated online retail or online auction website including, but not limited to: eBay, amazon.com, NexTag.com, PriceGrabber.com, Shopzilla.com, Best-Price.com, or any other online retail or online auction websites which sell products similar in character to Products. Supplier and Reseller acknowledge and agree that this prohibition is necessary to ensure patient/consumer safety and the integrity of the Products. Notwithstanding the foregoing, Reseller shall be permitted to sell individual unit-volumes of its Products on its own direct website, provided it has an established practitioner-patient relationship providing healthcare to the person to whom it sells such Products. Supplier reserves the right to prohibit sales of the Products on Reseller's own direct website, at any time, upon written Notice to Reseller.

5.5.6 Make any reference or inference to discounts, price reductions, special callin- pricing, coupons, price-matching policies, or any other special promotions of Supplier when engaging in any marketing activity regarding or sale of Products.

5.5.7 Make any claims regarding the use of Products which do not appear on the label of Products or Supplier's online Product listing; that is, Reseller/Distributor shall not make claims that Products treat specific diseases or conditions ("Disease Claims") and shall use only supportive statements that appear on the label of Products or in Supplier's online Product listing. At any time, Supplier may require the Reseller/Distributor to make changes to Reseller's/Distributor’s direct website or printed information about the Products if the Reseller/Distributor advertises or markets the Products in any way which Supplier reasonably believes violates applicable regulations promulgated by the Food and Drug Administration (FDA) or the Federal Trade Commission (FTC).

5.5.8 Use Supplier's name, logo, name of the Products, or other information linking the Supplier or the Products to market, advertise, or sell the Products other than identifying the Products with the actual name of the Products on Reseller's/Distributor’s own direct website. Prohibited acts include, but are not limited to, using the Supplier's name or logo on the Reseller's/Distributor’s website, creating a website to appear as if it is an official authorized website of the Supplier, or driving traffic to the Reseller's/Distributor’s own direct website by use of the Supplier's name or the name of the Products in metatags or through other search engine optimizing methods.

5.6 Supplier's Right to Discontinue Sales. Supplier reserves the right to discontinue sales of the Product to Reseller/Distributor in the event Reseller/Distributor engages in any Prohibited Acts enumerated at Section 5.5.

6. Minimum Advertised Price Policy

6.1 Reseller/Distributor Agreement/Minimum Advertised Price. Supplier currently has a Minimum Advertised Price (''MAP") policy that is issued separately from this Agreement is incorporated fully into this Agreement, and may be changed from time to time at the sole discretion of the Supplier. Supplier reserves the right to terminate this Agreement unilaterally at any time for violation of its MAP policy by giving written Notice to Reseller/Distributor. Reseller's/Distributor’s agreement with Supplier's MAP policy is not solicited nor will it be accepted as a condition of this Agreement. This Agreement will be terminated as of the written Notice as there is no right of cure for any violation of Supplier's MAP policy.

7. Term

7.1 Initial Term. The Term of this Agreement commences on the Effective Date and continues indefinitely, unless or until terminated as provided under this Agreement (the "Initial Term).

7.2 Supplier's Right to Terminate for Cause. Supplier may terminate this Agreement by providing written Notice to Reseller/Distributor:

7.2.1 If Reseller/Distributor fails to pay any amount when due under this Agreement ("Payment Failure") and nonpayment remains uncured for ninety (10) days after Reseller's/Distributor’s receipt of any invoice which states Reseller's/Distributor’s obligation to pay such amount by the due date set forth on the invoice;

7.2.2 If within any period of two (2) months, two (2) or more Payment Failures occur;

7.2.3 If Reseller/Distributor breaches any provision of this Agreement (other than a Payment Failure), and either the breach cannot be cured or, if the breach can be cured, it is not cured by Reseller/Distributor within ten (10) days after Reseller's/Distributor’s receipt of written Notice of the breach. The Parties agree that breaches of Section 5.5 cannot be cured;

7.2.4 If Reseller/Distributor is dissolved or liquidated or takes any corporate action for such purpose, becomes insolvent or files, or has filed against it, a petition for voluntary or involuntary bankruptcy or under any other insolvency law, makes or seeks to make a general assignment for the benefit of its creditors or applies for, or consents to, the appointment of a trustee, receiver or custodian for a substantial part of its property, or is generally unable to pay its debts as they become due;

7.2.5 If Reseller/Distributor sells, leases, exchanges, transfers, or disposes of a material portion of Reseller's/Distributor’s assets; merges or consolidates with or into any other entity, unless the surviving entity has a net worth greater than or equal to Reseller's/Distributor’s net worth immediately before the merger or consolidation; or undergoes a change of Control, in any case without Supplier's prior written consent.

7.2.6 If Reseller/Distributor violates Supplier's MAP policy as set forth Section 6.1 above. Any termination under this Section 7.2 shall be effective upon Reseller's/Distributor’s receipt of Supplier's written Notice of termination or any later date set out in the Notice.

7.3 Right to Terminate Without Cause. Either Party may terminate without cause upon 30-days written Notice to the other Party.

7.4 Effect of Termination. Termination of the Term does not affect any rights or obligations that were incurred by the Parties prior to the termination. Upon termination, all indebtedness of Reseller/Distributor to Supplier of any kind is immediately due and payable on the effective date of the Term's termination without further Notice to Reseller/Distributor. Any Notice of termination under this Agreement automatically operates as a cancellation of any deliveries of Products to Reseller/Distributor scheduled to be made after the effective date of termination, whether or not any orders for the Products had been accepted by Supplier. Supplier specifically retains, and does not waive, the right to demand: (1) the Products be returned immediately regardless of Reseller’s/Distributor’s ability to pay for the in-transit Products; or (2) any Products that are still in transit on termination of this Agreement, Reseller/Distributor shall immediately pay any amounts due and owing for the Products by certified funds or credit card. Upon expiration or earlier termination of the Term, Reseller/Distributor shall cease to represent itself as Supplier's authorized reseller/distributor regarding the Products, and shall otherwise cease and desist from all conduct or representations that might lead the public to believe Reseller/Distributor is authorized by Supplier to sell the Products. Upon termination, Reseller/Distributor shall return any Supplier-branded marketing and/or advertising materials.

8. Confidentiality

8.1 Protection of Confidential Information. From time to time during the Term, either Party (as the "Disclosing Party") may disclose or make available to the other Party (as the "Receiving Party") information about its business affairs, goods and services, material that is of a highly sensitive nature, materials comprising or relating to Intellectual Property Rights, trade secrets, third-party confidential information such as client and prospective client contact information, financial information, market research and information, profit margins and structures, cost reporting, estimating data bases and methods, the terms of this Agreement, and other sensitive or proprietary information, including the confidences and good will of each Party and each Party’s clients, all of which are understood by the Parties to be trade secrets and related documents that may be designated as confidential information whether orally or in written, electronic or other form or media, and whether or not marked, designated or otherwise identified as "confidential" (collectively, "Confidential Information"). Confidential Information does not include information that, at the time of disclosure:

8.1.1 Is or becomes generally available to and known by the public other than resulting from, directly or indirectly, any breach of this Section by the Receiving Party or any of its Representatives;

8.1.2 Is or becomes available to the Receiving Party on a non-confidential basis from a third-party source, provided that the third party is not and was not prohibited from disclosing the Confidential Information;

8.1.3 Was known by or in the possession of the Receiving Party or its Representatives before being disclosed by or on behalf of the Disclosing Party;

8.1.4 Was or is independently developed by the Receiving Party without reference to or use of, in whole or in part, any of the Disclosing Party's Confidential Information; or

8.1.5 Must be disclosed under applicable law or court order.

8.2 Obligations of Receiving Party. The Receiving Party shall:

8.2.1 Protect and safeguard the confidentiality of the Disclosing Party's Confidential Information with at least the same degree of care as the Receiving Party would protect its own Confidential Information, but in no event with less than a commercially reasonable degree of care

8.2.2 Not use the Disclosing Party's Confidential Information, or permit it to be accessed or used, for any purpose other than to exercise its rights or perform its obligations under this Agreement;

8.2.3 Not disclose any Confidential Information to any Person, except to the Receiving Party's Representatives who must know the Confidential Information to assist the Receiving Party, or act on its behalf, to exercise its rights or perform its obligations under this Agreement;

8.2.4 Bear responsibility for any breach of this Section 8 caused by any of its Representatives; and

8.2.5 Promptly return or destroy all Confidential Information (including copies) and all documents and tangible materials that contain, reflect, incorporate or are based on Confidential Information received under this Agreement, upon request of the Disclosing Party.

9. Intellectual Property Rights

9.1 Ownership. Subject to the express rights granted by Supplier in this Agreement, Reseller acknowledges and agrees that:

9.1.1 Supplier's Intellectual Property Rights are the sole and exclusive property of Supplier or its licensors;

9.1.2 Reseller/Distributor shall not acquire any ownership interest in any of Supplier's Intellectual Property Rights under this Agreement;

9.1.3 Any goodwill derived from the use by Reseller/Distributor of Supplier's Intellectual Property Rights inures to the benefit of Supplier or its licensors, as the case may be;

9.1.4 If Reseller/Distributor acquires any Intellectual Property Rights in or relating to any Products purchased under this Agreement (including any rights in any Trademarks, derivative works or patent improvements relating thereto), by operation of law, or otherwise, these rights are deemed and are hereby irrevocably assigned to Supplier or its licensors, as the case may be, without further action by either Party; and

9.1.5 Reseller/Distributor shall use Supplier's Intellectual Property Rights solely for the purposes of performing its obligations under this Agreement and only in accordance with this Agreement and the instructions of Supplier.

9.2 Supplier's Trademark License Grant. This Agreement does not grant either Party the right to use the other Party's or their affiliates' Trademarks except as set out under this Section. Subject to Supplier's trademark policies, Supplier hereby grants to Reseller a non-exclusive, non-transferable and non-sublicensable license to use Supplier's Trademarks during the Term solely on or in connection with the promotion, advertising and resale of the Products in accordance with the terms and conditions of this Agreement. Reseller/Distributor will promptly discontinue the display or use of any Trademark to change the manner in which a Trademark is displayed or used with regard to the Products when requested by Supplier. Other than the express licenses granted by this Agreement, Supplier grants no right or license to Reseller/Distributor, by implication, estoppel or otherwise, to the Products or any Intellectual Property Rights of Supplier. Reseller/Distributor agrees to use the symbols “™” and “©”, as appropriate, when displaying Supplier's Trademarks, to indicate Supplier's ownership of the Trademarks; use of such symbols shall not be construed as claims to ownership by the Reseller/Distributor. Reseller's/Distributor’s use of Supplier's Trademarks must be accompanied by a statement substantially as follows: Yin-care™ and Altigen™ are trademarks of YAO Company and are used with permission." Reseller's/Distributor’s website must also include, on all pages that reflect Products, a statement substantially as follows: "This site is not owned or operated by YAO Company."

9.3 Prohibited Acts. Reseller/Distributor shall not:

9.3.1 Take any action that interferes with any of Supplier's rights in or to Supplier's Intellectual Property Rights, including Supplier's ownership or exercise thereof;

9.3.2 Challenge any right, title or interest of Supplier in or to Supplier's Intellectual Property Rights;

9.3.3 Make any claim or take any action adverse to Supplier's ownership of Supplier's Intellectual Property Rights;

9.3.4 Register or apply for registrations, anywhere in the world, for Supplier's Trademarks or any other Trademark that is substantially similar to any of Supplier's Trademarks or that incorporates Supplier's Trademarks in whole or in confusingly or substantially similar part;

9.3.5 Use any mark, anywhere, that is confusingly or substantially similar to Supplier's Trademarks;

9.3.6 Engage in any action that tends to disparage, dilute the value of, or reflect negatively on the products purchased under this Agreement (including Products) or any Supplier Trademark;

9.3.7 Misappropriate any of Supplier's Trademarks for use as a domain name without prior written consent from Supplier; and

9.3.8 Alter, obscure or remove any of Supplier's Trademarks or trademark or copyright notices or any other proprietary rights notices placed on Products or any marketing materials or other materials that Supplier may provide to Reseller/Distributor.

9.4 Supplier's Trademark Notices. Reseller/Distributor shall ensure that all Products sold by Reseller/Distributor and all related quotations, specifications and descriptive literature, and all other materials carrying Supplier's Trademark, are marked with the appropriate trademark notices in accordance with Supplier's instructions.

9.5 No Continuing Rights. On expiration or earlier termination of this Agreement:

9.5.1 Reseller's/Distributor’s rights under Section 9.2 cease immediately; and

9.5.2 Reseller/Distributor shall immediately cease all display, advertising, promotion and use of all of Supplier's Trademarks and shall not thereafter use, advertise, promote or display any trademark, trade name or product designation or any part thereof that is similar to or confusing with Supplier's Trademarks or with any trademark, trade name or product designation associated with Supplier or any Product.

10. Price and Payment

10.1 Price. Reseller/Distributor shall purchase the Products from Supplier at the prices set out in Supplier's reseller/distribution price list ("Prices") in effect when the Supplier accepts the related Purchase Order(s) or online orders.

10.2 Shipping Charges, Insurance and Taxes. Reseller/Distributor shall pay for shipping charges and shipping insurance costs for the Products. All Prices are exclusive of all sales, use and excise taxes, and any other similar taxes, duties and charges of any kind imposed by any Governmental Authority on any amounts payable by Reseller/Distributor under this Agreement. Reseller/Distributor is responsible for all charges, costs and taxes; provided, however, that, Reseller/Distributor is not responsible for any taxes imposed on, or regarding, Supplier's income, revenues, gross receipts, personnel, real or personal property or other assets.

10.3 Payment Terms. Supplier shall issue invoices to Reseller/Distributor for all Products ordered. Reseller shall pay all invoiced amounts due to Supplier on receipt, as indicated on each invoice, except for any amounts disputed by Reseller/Distributor in good faith and in accordance with Section 10.4. Reseller shall make all payments in U.S. dollars, by credit card or wire transfer. Distributor shall make all payments in U.S. dollars, by check, credit card or wire transfer; wire transfer instructions will be provided by Supplier to Reseller/Distributor upon request.

10.4 Invoice Disputes. Reseller/Distributor shall Notify Supplier in writing of any dispute with any invoice (along with substantiating documentation or a reasonably detailed dispute description) within seven (7) Business Days from the date of the invoice. Reseller will be deemed to have waived any dispute and accepted all invoices for which Supplier does not receive timely Notice of disputes, and shall pay all undisputed amounts due under these invoices within the period set out above. The Parties shall seek to resolve all disputes expeditiously and in good faith. Notwithstanding anything to the contrary, Reseller/Distributor shall continue performing its obligations under this Agreement during any dispute, including, without limitation, Reseller's/Distributor’s obligation to pay all due and undisputed invoice amounts in accordance with the terms and conditions of this Agreement.

10.5 Late Payments. Except for invoiced payments that Reseller/Distributor has successfully disputed, Reseller/Distributor shall pay interest on all late payments, calculated daily and compounded monthly, at the lesser of the rate of 1.5% per month or the highest rate permissible under applicable Law. Reseller/Distributor shall also reimburse Supplier for all costs reasonably incurred in collecting any late payments, including, without limitation, attorney fees. In addition to all other remedies available under this Agreement or at law (which Supplier does not waive by the exercise of any rights under this Agreement), Supplier may suspend the delivery of any Products if Reseller/Distributor fails to pay any undisputed amounts when due under this Agreement and may thereafter terminate this Agreement under the terms of Section 7.2.1.

10.6 No Set-off Right. Reseller/Distributor shall not, and acknowledges that it has no right, under this Agreement, any Purchase Order, any other agreement, document or law, to withhold, offset, recoup or debit any amounts owed (or become due and owing) to Supplier or any of its affiliates, whether under this Agreement or otherwise, against any other amount owed or to become due and owing to it by Supplier or Supplier's affiliates, whether relating to Supplier's or its affiliates' breach or non-performance of this Agreement, any Purchase Order, or any other agreement between Reseller or any of its affiliates.

11. Indemnification.

11.1 Reseller/Distributor Indemnification. Reseller/Distributor shall indemnify, hold harmless, and defend Supplier and its parent, officers, directors, partners, members, shareholders, employees, agents, affiliates, representatives, successors and permitted assigns (collectively, "Indemnified Party"), at Reseller’s/Distributor’s expense by legal counsel satisfactory to contractor, against any and all losses, damages, liabilities, deficiencies, claims, actions, judgments, settlements, interest, awards, penalties, fines, costs, or expenses of whatever kind, equitable or otherwise, including attorney fees, expert fees, insurance deductibles, fees or fines, and the costs of enforcing any right to defense and indemnification under this Agreement and the cost of pursuing any insurance providers (collectively, "Losses"), incurred by Indemnified Party and arising out of or relating to any Claim of a third-party:

11.1.1 Relating to a breach or non-fulfillment of any obligation under this Agreement by Reseller/Distributor or Reseller's/Distributor’s personnel;

11.1.2 Alleging or relating to any negligent or more culpable act or omission of Reseller/Distributor or its Personnel (including any recklessness or willful misconduct) in connection with, arising out of, or related to the performance of its obligations under this Agreement;

11.1.3 Alleging or relating to any bodily injury, death of any Person or damage to real or tangible personal property caused by the willful or negligent acts or omissions of Reseller/Distributor or its Personnel;

11.1.4 Relating to a purchase of a Product by any person or entity purchasing directly or indirectly through Reseller/Distributor;

11.1.5 Relating to any failure by Reseller/Distributor or its Personnel to comply with any applicable state and federal laws, regulations, codes, or standards of care.

11.1.6 Relating to or arising from any material failure by Reseller/Distributor to observe or perform its covenants and agreements set forth in this Agreement or any other agreement executed by Reseller/Distributor in connection with the resale or distribution of the Products;

11.1.7 Any breach of any representation or warranty made by Reseller/Distributor to Supplier or third-parties;

12. Miscellaneous

12.1 Further Assurances. On a Party's reasonable request, the other Party shall, at its sole cost and expense, execute and deliver all further documents and instruments, and take all further acts, reasonably necessary to give full effect to this Agreement.

12.2 Entire Agreement. This Agreement, including and together with any Purchase Order Transaction Terms and any related exhibits, schedules, attachments and appendices, constitutes the Parties' sole and entire agreement regarding the subject matter of this Agreement and therein, and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, regarding this subject matter.

12.3 Notices. Each Party shall deliver all notices, requests, consents, claims, demands, waivers and other communications under this Agreement (each, a "Notice") in writing and addressed to the other Party at its address set forth above. Each Party shall deliver all Notices by personal delivery, nationally recognized overnight courier or certified or registered mail (in each case, return receipt requested, postage prepaid). Notice given by facsimile or e-mail (with confirmation of transmission) satisfies the requirements of this Section.

12.4 Headings. The headings in this Agreement are for reference only and do not affect the interpretation of this Agreement.

12.5 Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, the invalidity, illegality or unenforceability does not affect any other term or provision of this Agreement or invalidate or render unenforceable the term or provision in any other jurisdiction. On a determination that any term or provision is invalid, illegal or unenforceable, the Parties shall negotiate in good faith to modify this Agreement to effectuate the Parties' original intent as closely as possible in order that the transactions contemplated by this Agreement be consummated as originally contemplated to the greatest extent possible and render the provision lawful and enforceable. If such a modification is not possible without materially altering the intention of the Parties, then such provision shall be severed from this agreement for purposes of performance of this Agreement. The validity of the remaining provisions of this Agreement shall not be affected by any such modification or severance.

12.6 Amendment and Modification. No amendment to this Agreement is effective unless it is in writing, identified as an amendment to this Agreement, and signed by an authorized representative of each Party or, if Supplier modifies or amends this Agreement for all Resellers/Distributors, the amendment is effective if signed in writing by an authorized representative of each Party or acknowledge by electronic signature or another means of electronic affirmative verification (for example, checked box or click acknowledgement).

12.7 Waiver. No waiver under this Agreement is effective unless it is in writing, identified as a waiver to this Agreement, and signed by an authorized representative of the Party waiving its right. Any waiver authorized on one occasion is effective only in that instance and only for the purpose stated, and does not operate as a waiver on any future occasion. The following shall not constitute a waiver or estoppel of any right, remedy, power, privilege or condition arising from this Agreement: any failure or delay in exercising any right, remedy, power or privilege or in enforcing any condition under this Agreement; or any act, omission or course of dealing between the Parties.

12.8 Cumulative Remedies. All rights and remedies provided in this Agreement are cumulative and not exclusive, and the exercise by either Party of any right or remedy does not preclude the exercise of any other rights or remedies that may now or later be available at law, in equity, by statute, in any other agreement between the Parties or otherwise.

12.9 Assignment. Reseller/Distributor may not assign any of its rights or delegate any of its obligations under this Agreement without the prior written consent of Supplier. Any purported assignment or delegation in violation of this Section is null and void. No assignment or delegation relieves the assigning or delegating Party of any of its obligations under this Agreement. Supplier may assign any of its rights or delegate any of its obligations to any Affiliate or to any Person acquiring all or substantially all of Supplier's assets without the consent of Reseller/Distributor.

12.10 Binding Effect. Upon execution of this Agreement, all the terms, provisions, covenants and conditions of this Agreement shall be binding upon and inure to the benefit of and be enforceable by the Parties hereto and their respective heirs, executors, administrators, representatives, successors and assigns.

12.11 Choice of Law. THIS AGREEMENT, INCLUDING ALL EXHIBITS, SCHEDULES, ATTACHMENTS AND APPENDICES ATTACHED, ARE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF COLORADO, WITHOUT REGARD TO THE CONFLICT OF LAW PROVISIONS THEREOF TO THE EXTENT THESE PRINCIPLES OR RULES WOULD REQUIRE OR PERMIT THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THOSE OF THE STATE OF COLORADO.

12.12 Counterparts. This Agreement may be executed in counterparts, each of which is deemed an original, but all of which together are deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission is deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

12.13 Force Majeure. No Party shall be liable or responsible to the other Party, nor be deemed to have defaulted under or breached this Agreement, for any failure or delay in fulfilling or performing any term of this Agreement (except for any obligations to make payments to the other Party under this Agreement), when and to the extent the failure or delay is caused by or results from acts beyond the impacted Party's ("Impacted Party") reasonable control, including the following force majeure events ("Force Majeure Events": (a) acts of God; (b) flood, fire, earthquake or explosion; (c) war, invasion, hostilities (whether war is declared or not), terrorist threats or acts, riot or other civil unrest; (d) requirements of Law; (e) actions, embargoes or blockades in effect on or after the date of this Agreement; (f) action by any Governmental Authority; (g) national or regionalemergency; (h) strikes, labor stoppages or slowdowns or other industrial disturbances; and (i) shortage of adequate power or transportation facilities. The Impacted Party shall give Notice within fifteen (15) days of the Force Majeure Event or prior to any applicable payment deadline, whichever shall occur first, to the other Party, stating the period of time the occurrence is expected to continue. The Impacted Party shall use diligent efforts to end the failure or delay and ensure the effects of the Force Majeure Event are minimized. The Impacted Party shall resume the performance of its obligations as soon as reasonably practicable after the removal of the cause. In the event the Impacted Party's failure or delay remains uncured for a period of thirty (30) days following written Notice given by it under this Section, either Party may thereafter terminate this Agreement on fifteen (15) days' written Notice.

12.14 Jurisdiction, Venue and Mediation. ANY LAWSUIT OR PROCEEDING INVOLVING ANY DISPUTE OR MATTER ARISING UNDER THIS AGREEMENT SHALL ONLY BE BROUGHT IN THE COLORADO STATE OR FEDERAL COURT IN DENVER COUNTY, COLORADO. ALL RESELLERS/DISTRIBUTORS HEREBY CONSENT TO THE EXERCISE OF PERSONAL JURISDICTION BY ANY SUCH COURT WITH RESPECT TO ANY SUCH PROCEEDING.

12.15 Interpretation;Independent Review. This Agreement shall be construed reasonably to carry out its intent without presumption against or in favor of either Party. Each Party to this Agreement acknowledges that it has (i) independently reviewed the contents of this Agreement and the transactions contemplated hereby; (ii) consulted with and relied solely on its own counsel and advisors as to the legal, tax and related implications and ramifications arising from and in connection with the Agreement and the transactions contemplated hereby; and (iii) independently determined to enter into this

Agreement.

12.16 Attorney Fees and Costs. If any action or proceeding is instituted to enforce this Agreement or the rights of any Party created by this Agreement, reasonable attorney fees and costs shall be awarded to the prevailing Party.

END.