Exhibit
10.1


 


Silicon
Valley Bank


 


U.S.
Small Business Administration


Paycheck
Protection Program


Note


 


	SBA Loan No.	2007717204	 
	 	 	 
	SBA Loan Name	Borrower Legal Name 	Motus GI Holdings, Inc.
	 	DBA	 
	 	 	 
	Date	4/22/2020	 
	 	 	 
	Loan Amount	$ 780942	 
	 	 	 
	Interest Rate	1.0% per annum	 
	 	 	 
	Borrower	Motus GI Holdings, Inc.	 
	 	 	 
	Operating Company	Not applicable	 
	 	 	 
	Lender	Silicon Valley Bank	 


 


		1.	PROMISE
TO PAY.



 


In
return for the Loan, Borrower promises to pay to the order of Lender the amount of $ 780942 Dollars, interest on the unpaid
principal balance, and all other amounts required by this Note.


 


		2.	DEFINITIONS.



 


“Collateral”
means any property taken as security for payment of this Note or any guarantee of this Note.


 


“CARES
Act” means the Coronavirus Aid, Relief, and Economic Security Act.


 


“Guarantor”
means each person or entity that signs a guarantee of payment of this Note.


 


“Loan”
means the loan evidenced by this Note.


 


“Loan
Documents” means the documents related to this loan signed by Borrower, any Guarantor, or anyone who pledges collateral.


 


“Paycheck
Protection Program” means loan program created by Section 1102 of the CARES Act.


 



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“Per
Annum” means for a year deemed to be comprised of 360 days.


 


“SBA”
means the Small Business Administration, an Agency of the United States of America.


 


		3.	PAYMENT
TERMS: Borrower must make all payments at the place Lender designates. The payment terms for this Note are:



 


		A.	Conditions
Precedent to Disbursement of Loan Proceeds.



 


Before
the funding of the Loan, the following conditions must be satisfied:


 


		1.	Lender
has approved the request for the Loan.



 


		2.	Lender
has received approval from SBA to fund the Loan.



 


		B.	No
Payments During Deferral Period. There shall be no payments due by Borrower during the six-month period beginning on the date
of this Note (the “Deferral Period”). However, during the Deferral Period interest will accrue at the Interest Rate
on the unpaid principal balance computed on the basis of the actual number of days elapsed in a year of 360 days.



 


		C.	Principal
and Interest Payments. Commencing one month after the expiration of the Deferral Period, and continuing on the same day of
each month thereafter until the Maturity Date, Borrower shall pay to Lender monthly payments of principal and interest, each in
such equal amount required to fully amortize the principal amount outstanding on the Note on the last day of the Deferral Period
by the Maturity Date.



 


		D.	Maturity
Date. On the date which is twenty-four (24) months from the date of this Note (the “Maturity Date”), Borrower
shall pay to Lender any and all unpaid principal plus accrued and unpaid interest plus interest accrued during the Deferral Period.
This Note will mature on the Maturity Date.



 


		E.	Not
a Business Day. If any payment is due on a date for which there is no numerical equivalent in a particular calendar month
then it shall be due on the last day of such month. If any payment is due on a day that is a Saturday, Sunday or any other day
on which California chartered banks are authorized to be closed, the payment will be made on the next business day.



 


		F.	Payment
Allocation. Payments shall be allocated among principal and interest at the discretion of Lender unless otherwise agreed or
required by applicable law (including the CARES Act). Notwithstanding, in the event the Loan, or any portion thereof, is forgiven
pursuant to the Paycheck Protection Program under the federal CARES Act, the amount so forgiven shall be applied to principal.



 


		F.	Prepayments.
Borrower may prepay this Note at any time without payment of any penalty or premium.



 






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		G.	Borrower
Certifications.



 


Borrower
certifies to Lender as follows:


 


		1.	Current
economic uncertainty makes this Loan necessary to support the ongoing operations of Borrower.



 


		2.	Loan
funds will be used by Borrower to retain its workers and maintain its payroll or make its mortgage payments, lease payments, and
utility payments.



 


		3.	For
the period beginning on February 15, 2020 and ending on December 31, 2020, Borrower did not receive, and agrees it will not apply
for or receive, another loan under the Paycheck Protection Program.



 


		4.	Borrower
was in operation on February 15, 2020 and (i) had employees for whom it paid salaries and payroll taxes or (ii) paid independent
contractors as reported on a 1099-Misc.



 


		5.	Borrower
has reviewed and understands Sections 1102 and 1106 of the CARES Act and the related guidelines and has completed the Application,
including Borrower’s eligibility in conformity with those provisions.



 


		6.	Borrower
has taken its “affiliates” (as defined by the SBA) into account when determining the number of employees and the total
amount of loans permitted under the Paycheck Protection Program.



 


		7.	Borrower
is a small business concern or is otherwise eligible to receive a covered loan.



 


		8.	The
person who has completed and signed the application, this Note and the Loan Documents has been validly authorized by Borrower
to enter into borrowings on behalf of Borrower.



 


		H.	Agreements.



 


Borrower
understands and agrees, and waives and releases Lender, its affiliates and their respective directors, officers, agents and employees,
as follows:


 


		1.	The
Loan will be made under the SBA’s Paycheck Protection Program. Accordingly, this Note and the other Loan Documents must
be submitted to and approved by the SBA. There is limited funding available under the Paycheck Protection Program and accordingly,
all applications submitted will not be approved by the SBA.



 


		2.	Lender
is participating in the Payroll Protection Program to help businesses impacted by the economic impact from COVID-19. However,
Lender anticipates high volumes and there may be processing delays and system failures along with other issues that interfere
with submission of Borrower’s application to SBA. Lender does not represent or guarantee that it will submit the application
while SBA funding remains available under the Payroll Protection Program or at all. Borrower hereby agrees that Lender
is not responsible or liable to Borrower or any of its affiliates (i) if the Lender does not submit Borrower’s application
to the SBA until after the date that SBA stops approving applications
under the Paycheck Protection Program, for any reason or (ii) if the application is not processed by Lender. Borrower forever
releases and waives any claims against Lender, its affiliates and their respective directors, officers, agents and employees concerning
failure to obtain the Loan. This release and waiver applies to, but is not limited to, any claims concerning Lender’s (i)
pace, manner or systems for processing or prioritizing applications, or (ii) representations by Lender regarding the application
process, the Paycheck Protection Program, or availability of funding. This agreement to release and waiver supersedes any prior
communications, understandings, agreements or communications on the issues set forth herein.



 






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		3.	Forgiveness
of the Loan is only available for principal that is used for the limited purposes that expressly qualify for forgiveness under
SBA requirements, and that to obtain forgiveness, Borrower must request forgiveness from the Lender, provide documentation in
accordance with the SBA requirements, and certify that the amounts Borrower is requesting to be forgiven qualify under those requirements.
Borrower also understands that Borrower shall remain responsible under the Loan for any amounts not forgiven, and that interest
payable under the Loan will not be forgiven, but that the SBA may pay the Loan interest on forgiven amounts.



 


		4.	Forgiveness
of the Loan is not automatic and Borrower must request forgiveness of the Loan from Lender. Borrower is not relying on Lender
for its understanding of the requirements for forgiveness such as eligible expenditures, necessary records/documentation, or possible
reductions due to changes in number of employees or compensation. Borrower agrees that will consult the SBA’s program materials
and consult with its own counsel regarding the criteria forgiveness.



 


		5.	The
Loan Documents are subject to review, and Borrower may not receive the Loan. The Loan also remains subject to availability of
funds under the SBA’s Payment Protection Program, and to the SBA issuing an SBA loan number.



 


		6.	Borrower’s
liability under this Note will continue with respect to any amounts SBA may pay Bank based on an SBA guarantee of this Note. Any
agreement with Bank under which SBA may guarantee this Note does not create any third party rights or benefits for Borrower and,
if SBA pays Bank under such an agreement, SBA or Bank may then seek recovery from Borrower of amounts paid by SBA.



 


		7.	Lender
reserves the right to modify the Note Amount based on documentation received from Borrower.



 


		8.	Borrower’s
execution of this Note has been duly authorized by all necessary actions of its governing body. The person signing this Note is
duly authorized to do so on behalf of Borrower.



 


		9.	This
Note shall not be governed by any existing or future credit agreement or loan agreement with Lender. The liabilities guaranteed
pursuant to any existing or future guaranty in favor of Lender shall not include this Note. The liabilities secured by any existing
or future security instrument in favor of Lender shall not include the Loan.



  


		10.	The
proceeds of the Loan will be used to retain workers and maintain payroll or make mortgage interest payments, lease payments, and
utility payments, as specified under the Paycheck Protection Program Rule. Borrower understands that if the funds are knowingly
used for unauthorized purposes, the federal government may hold Borrower legally liable, such as for charges of fraud.



 






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Electronic Execution of Loan Documents.


 


The words “execution,”
“signed,” “signature” and words of like import in this Note and any Loan Document shall be deemed to include
electronic signatures or the keeping of records in electronic form, each of which shall be of the same legal effect, validity and
enforceability as a manually executed signature or the use of a paper-based recordkeeping systems, as the case may be, to the extent
and as provided for in any applicable law, including, without limitation, any state law based on the Uniform Electronic Transactions
Act.


 


4. DEFAULT:


 


Borrower is in default under this Note if Borrower
does not make a payment when due under this Note, or if Borrower or Operating Company:


 


		A.	Fails to do anything required by this Note and other Loan Documents;



 


		B.	Defaults on any other loan with Lender;



 


		C.	Does not preserve, or account to Lender’s satisfaction for, any of the Collateral or its proceeds;



 


		D.	Does not disclose, or anyone acting on their behalf does not disclose, any material fact to Lender or SBA;



 


		E.	Makes, or anyone acting on their behalf makes, a materially false or misleading representation to Lender or SBA;



 


		F.	Defaults on any loan or agreement with another creditor, if Lender believes the default may materially affect Borrower’s
ability to pay this Note;



 


		G.	Fails to pay any taxes when due;



 


		H.	Becomes the subject of a proceeding under any bankruptcy or insolvency law;



 


		I.	Has a receiver or liquidator appointed for any part of their business or property;



 


		J.	Makes an assignment for the benefit of creditors;



 


		K.	Has any adverse change in financial condition or business operation that Lender believes may materially affect Borrower’s
ability to pay this Note;



 


		L.	Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without Lender’s prior written consent; or






 





		M.	Becomes the subject of a civil or criminal action that Lender believes may materially affect Borrower’s ability to pay this Note.


  



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 5. LENDER’S RIGHTS IF THERE IS A DEFAULT.




 


Without notice or demand and without giving up any
of its rights, Lender may:


 


		A.	Require immediate payment of all amounts owing under this Note;



 


		B.	Collect all amounts owing from any Borrower or Guarantor;



 


		C.	File suit and obtain judgment.



 


		D.	Take possession of any Collateral; or



 


		E.	Sell, lease, or otherwise dispose of, any Collateral at public or private sale, with or without advertisement.



 


 6. LENDER’S GENERAL POWERS.




 


Without notice and without Borrower’s consent,
Lender may:


 


		A.	Bid on or buy the Collateral at its sale or the sale of another lienholder, at any price it chooses;



 


		B.	Incur expenses to collect amounts due under this Note, enforce the terms of this Note or any other Loan Document, and preserve
or dispose of the Collateral. Among other things, the expenses may include payments for property taxes, prior liens, insurance,
appraisals, environmental remediation costs, and reasonable attorney’s fees and costs. If Lender incurs such expenses, it
may demand immediate repayment from Borrower or add the expenses to the principal balance;



 


		C.	Release anyone obligated to pay this Note;



 


		D.	Compromise, release, renew, extend or substitute any of the Collateral; and



 


		E.	Take any action necessary to protect the Collateral or collect amounts owing on this Note.



 


 7. WHEN FEDERAL LAW APPLIES; GOVERNING LAW; FORUM SELECTION.




 


When SBA is the
holder, this Note will be interpreted and enforced under federal law, including SBA regulations. Lender or SBA may use state or
local procedures for filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using such procedures,
SBA does not waive any federal immunity from state or local control, penalty, tax, or liability. As to this Note, Borrower may
not claim or assert against SBA any local or state law to deny any obligation, defeat any claim of SBA, or preempt federal law.


 



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8. SUCCESSORS
AND ASSIGNS.


 


Under this Note, Borrower and Operating Company includes
its successors, and Lender includes its successors and assigns.


 


 9. GENERAL PROVISIONS.




 


		A.	All individuals and entities signing this Note are jointly and severally liable.



 


		B.	Borrower waives all suretyship defenses.



 


		C.	Borrower must sign all documents necessary at any time to comply with the Loan Documents and to enable Lender to acquire, perfect,
or maintain Lender’s liens on Collateral.



 


		D.	Lender may exercise any of its rights separately or together, as many times and in any order it
chooses. Lender may delay or forgo enforcing any of its rights without giving up any of them. E. Borrower may not use an oral statement
of Lender or SBA to contradict or alter the written terms of this Note.



 


		E.	If any part of this Note is unenforceable, all other parts remain in effect.



 


		F.	To the extent allowed by law, Borrower waives all demands and notices in connection with this Note,
including presentment, demand, protest, and notice of dishonor. Borrower also waives any defenses based upon any claim that Lender
did not obtain any guarantee; did not obtain, perfect, or maintain a lien upon Collateral; impaired Collateral; or did not obtain
the fair market value of Collateral at a sale.



 


 10. STATE-SPECIFIC PROVISIONS:




 


If the SBA is not the holder,
this Note shall be governed by and construed in accordance with the laws of the State of California where the main office of Lender
is located. MATTERS REGARDING INTEREST TO BE CHARGED BY LENDER AND THE EXPORTATION OF INTEREST SHALL BE GOVERNED BY FEDERAL LAW
(INCLUDING WITHOUT LIMITATION 12 U.S.C. SECTIONS 85 AND 1831(u) AND THE LAW OF THE STATE OF CALIFORNIA. Borrower agrees that any
legal action or proceeding with respect to any of its obligations under this Note may be brought by Lender in any state or federal
court located in the State of California, as Lender in its sole discretion may elect. Borrower submits to and accepts in respect
of its property, generally and unconditionally, the non-exclusive jurisdiction of those courts. Borrower waives any claim that
the State of California is not a convenient forum or the proper venue for any such suit, action or proceeding. The extension of
credit that is the subject of this Note is being made by Lender in California.


 






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 11. BORROWER’S NAME(S) AND SIGNATURE(S).




 


BORROWER CERTIFIES THAT THE INFORMATION
PROVIDED IN THIS APPLICATION AND THE INFORMATION PROVIDED IN ALL SUPPORTING DOCUMENTS AND FORMS IS TRUE AND ACCURATE IN ALL MATERIAL
RESPECTS. BORROWER UNDERSTANDS THAT KNOWINGLY MAKING A FALSE STATEMENT TO OBTAIN A GUARANTEED LOAN FROM SBA IS PUNISHABLE UNDER
THE LAW, INCLUDING UNDER 18 USC 1001 AND 3571 BY IMPRISONMENT OF NOT MORE THAN FIVE YEARS AND/OR A FINE OF UP TO $250,000; UNDER
15 USC 645 BY IMPRISONMENT OF NOT MORE THAN TWO YEARS AND/OR A FINE OF NOT MORE THAN $5,000; AND, IF SUBMITTED TO A FEDERALLY INSURED
INSTITUTION, UNDER 18 USC 1014 BY IMPRISONMENT OF NOT MORE THAN THIRTY YEARS AND/OR A FINE OF NOT MORE THAN $1,000,000.


 


By signing below,
each individual or entity becomes obligated under this Note as Borrower. 


 


Funds will be credited
to your Deposit 


Account Number ending in:


 


	XXXX	BORROWER:
	 	 	 
	 	By:	/s/ David Guzman
	 	Name:  	David Guzman
	 	Title:	Authorized Signer
	 	Date:	4/22/2020





 


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