Exhibit 10.4


 


EMPLOYMENT AGREEMENT


 


This Employment Agreement
(“Agreement”) is effective as of July 31, 2015 (“Effective Date”), by and between X-spine Systems, Inc.
and/or successor thereof, an Ohio corporation (the “Company”), and David Kirschman, an Individual
(“Employee”).


 


In consideration of the mutual promises,
covenants and agreements contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of
which is hereby acknowledged, the parties agree as follows:


 


1.               EMPLOYMENT
AND DUTIES.


 


A.           Job
Title and Responsibilities. The Company hereby employs Employee, and Employee hereby agrees to be employed, as Executive VP
and Chief Scientific Officer of Bacterin International, Inc., and President of the Company, reporting to the Chief Executive Officer
of Bacterin International, Inc. Employee’s title and responsibilities may change during the course of Employee's employment
with the Company, but the terms of this Agreement shall remain in full force and effect regardless of any change in Employee's
title or responsibilities.


 


B.           Full-Time
Best Efforts. Employee agrees to devote all necessary professional time and attention to the business of the Company (and its
subsidiaries, affiliates, or related entities) required to fulfill the performance of Employee’s obligations under this Agreement,
and will at all times faithfully, industriously and to the best of Employee’s ability, experience and talent, perform all
of Employee’s obligations hereunder. Employee shall not, at any time during Employee’s employment by the Company, directly
or indirectly, act as a partner, officer, director, consultant, employee, or provide services in any other capacity to any other
business enterprise that conflicts with the Company’s business or Employee’s duty of loyalty to the Company. Without
limiting the generality of the foregoing, Employee has disclosed that he currently serves on the board of directors of Aerobiotix,
Inc. Employee shall seek the written consent of the Company prior to accepting any further outside board positions or prior to
materially expanding his role on the current boards on which he serves. Employee will be limited to no more than two external Board
positions, inclusive of Aerobiotix, Inc.


 


C.           Duty
of Loyalty. Employee acknowledges that during Employee’s employment with the Company, Employee has participated in and
will participate in relationships with existing and prospective clients, customers, partners, suppliers, service providers and
vendors of the Company that are essential elements of the Company’s goodwill. The parties acknowledge that Employee owes
the Company a fiduciary duty to conduct all affairs of the Company in accordance with all applicable laws and the highest standards
of good faith, trust, confidence and candor, and to endeavor, to the best of Employee’s ability, to promote the best interests
of the Company.


 


D.           Conflict
of Interest. Employee agrees that while employed by the Company, and except with the advance written consent of a duly authorized
officer of the Company, Employee will not enter into, on behalf of the Company, or cause the Company or any of its affiliates to
enter into, directly or indirectly, any transactions with any business organization in which Employee or any member of Employee’s
immediate family may be interested as a shareholder, partner, member, trustee, director, officer, employee, consultant, lender
or guarantor or otherwise; provided, however, that nothing in this Agreement shall restrict transactions between the Company and
any company whose stock is listed on a national securities exchange or actively traded in the over-the-counter market and over
which Employee does not have the ability to control or significantly influence policy decisions.


 





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2.               COMPENSATION.



 


A.           Base
Pay. The Company agrees to pay Employee gross annual compensation of $500,000, less usual and customary withholdings, which
shall be payable in arrears in accordance with the Company’s customary payroll practices.


 


B.           Bonus
and Incentive Compensation. Employee shall also be eligible for bonus and incentive based compensation approved by the Compensation
Committee of the Board of Directors of Bacterin International Holdings, Inc. (“BONE”), from time to time. The target
bonus compensation will be 50% of base pay. Such bonus and incentive compensation shall be paid in accordance with the bonus and
incentive compensation plan documents adopted by the Company, or in the absence of such plan documents, no later than 2-1/2 months
following the year in which the bonus or incentive compensation vests.


 


C.           Stock
Award. Subject to the approval of the Compensation Committee of BONE’s Board of Directors, the Company will cause BONE
to grant Employee 40,000 shares of restricted BONE common stock (the “Grant”). The Grant will vest as follows: (i)
20%, or 8,000 underlying shares, will vest on the first anniversary of the date of the Grant, and (ii) the remaining 80% will vest
in 35 equal monthly installments of 914 underlying shares, beginning one month after the first anniversary of the date of the Grant.
Employee must remain employed by the Company for vesting to occur. Upon a Change in Control as defined in BONE’s Amended
and Restated Equity Incentive Plan, the entire Grant shall immediately be 100% vested.


 


D.           Benefits.
During Employee’s employment, Employee will be eligible to participate in the Company’s benefit programs, as summarized
and as governed by any plan documents concerning such benefits. Employee will be eligible for four weeks of paid vacation per year,
subject to the Company’s carryover policy.


 


3.               PROPRIETARY
INFORMATION.


 


A.           Employee
understands that during Employee’s employment relationship with the Company, the Company intends to provide Employee with
information, including Proprietary Information (as defined herein), without which Employee would not be able to perform Employee’s
duties to the Company. Employee agrees, at all times during the term of Employee’s employment relationship and thereafter,
to hold in strictest confidence, and not to use or disclose, except for the benefit of the Company to the extent necessary to perform
Employee’s obligations to the Company, any Proprietary Information that Employee obtains, accesses or creates during the
term of the relationship, whether or not during working hours, until such Proprietary Information becomes publicly and widely known
and made generally available through no wrongful act of Employee or of others under confidentiality obligations as to the information
involved. Employee understands that “Proprietary Information” means information and physical material not generally
known or available outside the Company and information and physical material entrusted to the Company by third parties under an
obligation of non-disclosure or non-use or both. “Proprietary Information” includes, without limitation, inventions,
technical data, trade secrets, marketing ideas or plans, research, product or service ideas or plans, business strategies, investments,
investment opportunities, potential investments, market studies, industry studies, historical financial data, financial information
and results, budgets, identity of customers, forecasts (financial or otherwise), possible or pending transactions, customer lists
and domain names, price lists, and pricing methodologies.


 


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B.           At
all times, both during Employee’s employment and after its termination, Employee will keep and hold all such Proprietary
Information in strict confidence and trust. Employee will not use or disclose any Proprietary Information without the prior written
consent of the Company, except as may be necessary to perform Employee’s duties as an employee of the Company for the benefit
of the Company. Employee may disclose information that Employee is required to disclose by valid order of a government agency or
court of competent jurisdiction, provided that Employee will:


 


		(i)	notify the Company in writing immediately upon learning
that such an order may be sought or issued,



		(ii)	cooperate with the Company as reasonably requested if
the Company seeks to contest such order or to place protective restrictions on the disclosure pursuant to such order, and



		(iii)	comply with any protective restrictions in such order,
and disclose only the information specified in the order.



 


C.           Upon
termination of employment with the Company, Employee will promptly deliver to the Company all documents and materials of any nature
pertaining to Employee’s work with the Company.


 


D.           Employee
agrees not to infringe the copyright of the Company, its customers or third parties (including, without limitation, Employee’s
previous employer, customers, etc.) by unauthorized or unlawful copying, modifying or distributing of copyrighted material, including
plans, drawings, reports, financial analyses, market studies, computer software and the like.


 


4.               COVENANT
NOT TO COMPETE.


 


A.           Noncompetition
Covenant. Employee agrees that during the Restricted Period (as defined below), without the prior written consent of the Company,
Employee shall not, directly or indirectly within the Territory (as defined below): (i) personally, by agency, as an employee,
independent contractor, consultant, officer, director, manager, agent, associate, investor (other than as a passive investor holding
less than five percent of the outstanding equity of an entity), or by any other artifice or device, engage in any Competitive Business
(as defined below), (ii) assist others, including but not limited to employees of the Company, to engage in any Competitive Business,
or (iii) own, purchase, finance, organize or take preparatory steps to own, purchase, finance, or organize a Competitive Business.


 


B.           Definitions.


 


1.          “Competitive
Business” means (i) any person, entity or organization which is engaged in or about to become engaged in research on, consulting
regarding, or development, production, marketing or selling of any product, process, technology, device, invention or service which
resembles, competes with or is intended to resemble or compete with a product, process, technology, device, invention or service
of the Company; or (ii) any other line of business that was conducted by the Company or that Employee knows or reasonably should
know the Company or any affiliate, successor or related entity, at any time during the term of Employee’s employment with
the Company, is actively preparing to pursue.  


 


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2.          “Territory”
means all regions where the Company conducts business or is contemplating doing so.


 


3.          “Restricted
Period” means the period of Employee’s employment with the Company and for a period of six months following the termination
of Employee’s employment; provided that if such termination is of a type that results in severance under Paragraph 12B (or
would result in severance if Employee had been employed for 12 full months), the Restricted Period after termination shall be the
period of severance, if any, following such termination.


 


4. In order for
the Noncompetition Covenant under Paragraph 4(b) to be valid and enforceable, Company must pay Employee 75% of base pay under Paragraph
2(a) for the duration of the Restricted Period. The Company, at its sole discretion and upon notice to Employee, may elect to waive
all or a portion of the Restricted Period and thereby reduce base pay due on a pro rata basis.


 


5.               NON-SOLICITATION
AND NON-INTERFERENCE COVENANTS.


 


A.           Nonsolicitation
of Employees and Others. During the Restricted Period, (a) Employee shall not, directly or indirectly, solicit, recruit, or
induce, or attempt to solicit, recruit or induce any employee, consultant, independent contractor, vendor, supplier, or agent to
terminate or otherwise adversely affect his or her employment or other business relationship (or prospective employment or business
relationship) with the Company, and (b) Employee shall not, directly or indirectly, solicit, recruit, or induce, or attempt to
solicit, recruit or induce any employee to work for Employee or any other person or entity, other than the Company or its affiliates
or related entities.


 


B.           Nonsolicitation
of Customers. During the Restricted Period, Employee shall not, directly or indirectly, solicit, recruit, or induce any Customer
(as defined below) for the purpose of (i) providing any goods or services related to a Competitive Business, or (ii) interfering
with or otherwise adversely affecting the contracts or relationships, or prospective contracts or relationships, between the Company
(including any related or affiliated entities) and such Customers. “Customer” means a person or entity with which Employee
had contact or about whom Employee gained information while an Employee of the Company, and to which the Company was selling or
providing products or services, was in active negotiations for the sale of its products or services, or was otherwise doing business
as of the date of the cessation of Employee’s employment with the Company or for whom the Company had otherwise done business
within the 12 month period immediately preceding the cessation of Employee’s employment with the Company.


 


6.               ACKNOWLEDGEMENTS.
Employee acknowledges and agrees that:


 


A.           The
geographic and duration restrictions contained in Paragraphs 4 and 5 of this Agreement are fair, reasonable, and necessary to protect
the Company’s legitimate business interests and trade secrets, given the geographic scope of the Company’s business
operations, the competitive nature of the Company’s business, and the nature of Employee’s position with the Company;


 


B.           Employee’s
employment creates a relationship of confidence and trust between Employee and the Company with respect to the Proprietary Information,
and Employee will have access to Proprietary Information (including but not limited to trade secrets) that would be valuable or
useful to the Company’s competitors;


 


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C.           The
Company’s Proprietary Information is a valuable asset of the Company, and any violation of the restrictions set forth in
this Agreement would cause substantial injury to the Company;


 


D.           The
restrictions contained in this Agreement will not unreasonably impair or infringe upon Employee’s right to work or earn a
living after Employee’s employment with the Company ends; and


 


E.           This
Agreement is a contract for the protection of trade secrets under applicable law and is intended to protect the Proprietary Information
(including trade secrets) identified above.


 


7.               “BLUE
PENCIL” AND SEVERABILITY PROVISION. If a court of competent jurisdiction declares any provision of this Agreement invalid,
void, voidable, or unenforceable, the court shall reform such provision(s) to render the provision(s) enforceable, but only to
the extent absolutely necessary to render the provision(s) enforceable and only in view of the parties’ express desire that
the Company be protected to the greatest possible extent under applicable law from improper competition and the misuse or disclosure
of trade secrets and Proprietary Information. To the extent such a provision (or portion thereof) may not be reformed so as to
make it enforceable, it may be severed and the remaining provisions shall remain fully enforceable.


 


8.               INVENTIONS.



 


A.           Inventions
Retained and Licensed. Attached as Exhibit A is a list describing all inventions and information created, discovered or developed
by Employee, whether or not patentable or registrable under patent, copyright or similar statutes, made or conceived or reduced
to practice or learned by Employee, either alone or with others before Employee’s employment with the Company (“Prior
Inventions”), which belong in whole or in part to Employee, and which are not being assigned by Employee to the Company.
Employee represents that Exhibit A is complete and contains no confidential or proprietary information belonging to a person or
entity other than Employee. Employee acknowledges and agrees that Employee has no rights in any Inventions (as that term is defined
below) other than the Prior Inventions listed on Exhibit A. If there is nothing identified on Exhibit A, Employee represents that
there are no Prior Inventions as of the time of signing this Agreement. Employee shall not incorporate, or permit to be incorporated,
any Prior Invention owned by Employee or in which he/she has an interest in a Company product, process or machine without the Company’s
prior written consent. Notwithstanding the foregoing, if, in the course of Employee’s employment with the Company, Employee
directly or indirectly incorporates into a Company product, process or machine a Prior Invention owned by Employee or in which
Employee has an interest, the Company is hereby granted and shall have a non-exclusive, royalty-free, irrevocable, perpetual, world-wide
license to make, have made, modify, use, create derivative works from and sell such Prior Invention as part of or in connection
with such product, process or machine.


 


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B.           Assignment
Of Inventions. Employee shall promptly make full, written disclosure to the Company, will hold in trust for the sole right
and benefit of the Company, and hereby irrevocably transfers and assigns, and agrees to transfer and assign, to the Company, or
its designee, all his/her right, title and interest in and to any and all inventions, original works of authorship, developments,
concepts, improvements, designs, discoveries, ideas, trademarks (and all associated goodwill), mask works, or trade secrets, whether
or not they may be patented or registered under copyright or similar laws, which Employee may solely or jointly conceive or develop
or reduce to practice, or cause to be conceived or developed or reduced to practice, during Employee’s employment by the
Company (the “Inventions”). Employee further acknowledges that all original works of authorship which are made by Employee
(solely or jointly with others) within the scope of and during the period of his/her employment with the Company and which may
be protected by copyright are “Works Made For Hire” as that term is defined by the United States Copyright Act. Employee
understands and agrees that the decision whether to commercialize or market any Invention developed by Employee solely or jointly
with others is within the Company’s sole discretion and the Company’s sole benefit and that no royalty will be due
to Employee as a result of the Company’s efforts to commercialize or market any such invention.


 


Employee recognizes
that Inventions relating to his or her activities while working for the Company and conceived or made by Employee, whether alone
or with others, within one year after cessation of Employee’s employment, may have been conceived in significant part while
employed by the Company. Accordingly, Employee acknowledges and agrees that such Inventions shall be presumed to have been conceived
during Employee’s employment with the Company and are to be, and hereby are, assigned to the Company unless and until Employee
has established the contrary.


 


C.           Maintenance
of Records. Employee agrees to keep and maintain adequate and current written records of all Inventions made by Employee (solely
or jointly with others) during his/her employment with the Company. The records will be in the form of notes, sketches, drawings
and any other format that may be specified by the Company. The records will be available to and remain the sole property of the
Company at all times.


 


D.           Patent,
Trademark and Copyright Registrations. Employee agrees to assist the Company, or its designee, at the Company’s expense,
in every proper way to secure the Company’s rights in the Inventions and any copyrights, patents, trademarks, service marks,
mask works, or any other intellectual property rights in any and all countries relating thereto, including, but not limited to,
the disclosure to the Company of all pertinent information and data with respect thereto, the execution of all applications, specifications,
oaths, assignments and all other instruments the Company reasonably deems necessary in order to apply for and obtain such rights
and in order to assign and convey to the Company, its successors, assigns, and nominees the sole and exclusive rights, title, and
interest in and to such inventions, and any copyrights, patents, trademarks, service marks, mask works, or any other intellectual
property rights relating thereto. Employee further agrees that his/her obligation to execute or cause to be executed, when it is
in his/her power to do so, any such instrument or paper shall continue after termination or expiration of this Agreement or the
cessation of his/her employment with the Company. If the Company is unable because of Employee’s mental or physical incapacity
or for any other reason, after reasonably diligent efforts, to secure Employee’s signature to apply for or to pursue any
application for any United States or foreign patents, trademarks or copyright registrations covering inventions or original works
of authorship assigned to the Company as above, then Employee hereby irrevocably designates and appoints the Company and its duly
authorized officers and agents as Employee’s agent and attorney-in-fact to act for and in his/her behalf and stead to execute
and file any such applications and to do all other lawfully permitted acts to further the prosecution and issuance of letters patent,
trademarks or copyright registrations thereon with the same legal force and effect as if executed by Employee; this power of attorney
shall be a durable power of attorney which shall come into existence upon Employee’s mental or physical incapacity.


 


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9.              SURVIVAL
AND REMEDIES. Employee’s obligations of nondisclosure, nonsolicitation, noninterference, and noncompetition under this
Agreement shall survive the cessation of Employee’s employment with the Company and shall remain enforceable. In addition,
Employee acknowledges that upon a breach or threatened breach of any obligation of nondisclosure, nonsolicitation, noninterference,
or noncompetition of this Agreement, the Company may suffer irreparable harm and damage for which money alone cannot fully compensate
the Company. Employee therefore agrees that upon such breach or threat of imminent breach of any such obligation, the Company shall
be entitled to seek a temporary restraining order, preliminary injunction, permanent injunction or other injunctive relief, without
posting any bond or other security, barring Employee from violating any such provision. This Paragraph shall not be construed as
an election of any remedy, or as a waiver of any right available to the Company under this Agreement or the law, including the
right to seek damages from Employee for a breach of any provision of this Agreement and the right to require Employee to account
for and pay over to the Company all profits or other benefits derived or received by Employee as the result of such a breach, nor
shall this Paragraph be construed to limit the rights or remedies available under state law for any violation of any provision
of this Agreement.


 


10.             RETURN
OF COMPANY PROPERTY. All devices, records, reports, data, notes, compilations, lists, proposals, correspondence, specifications,
equipment, drawings, blueprints, manuals, DayTimers, planners, calendars, schedules, discs, data tapes, financial plans and information,
or other recorded matter, whether in hard copy, magnetic media or otherwise (including all copies or reproductions made or maintained,
whether on the Company’s premises or otherwise), pertaining to Employee’s work for the Company, or relating to the
Company or the Company’s Proprietary Information, whether created or developed by Employee alone or jointly during his/her
employment with the Company, are the exclusive property of the Company. Employee shall surrender the same (as well as any other
property of the Company) to the Company upon its request or promptly upon the cessation of employment. Upon cessation of Employee’s
employment, Employee agrees to sign and deliver the “Termination Certificate” attached as Exhibit B, which shall detail
all Company property that is surrendered upon cessation of employment.


 


11.            NO
CONFLICTING AGREEMENTS OR IMPROPER USE OF THIRD-PARTY INFORMATION. During her/his employment with the Company, Employee shall
not improperly use or disclose any proprietary information or trade secrets of any former employer or other person or entity, and
Employee shall not bring on to the premises of the Company any unpublished document or proprietary information belonging to any
such former employer, person or entity, unless consented to in writing by the former employer, person or entity. Employee represents
that he/she has not improperly used or disclosed any proprietary information or trade secrets of any other person or entity during
the application process or while employed or affiliated with the Company. Employee also acknowledges and agrees that he/she is
not subject to any contract, agreement, or understanding that would prevent Employee from performing his/her duties for the Company
or otherwise complying with this Agreement. To the extent Employee violates this provision, or his/her employment with the Company
constitutes a breach or threatened breach of any contract, agreement, or obligation to any third party, Employee shall indemnify
and hold the Company harmless from all damages, expenses, costs (including reasonable attorneys’ fees) and liabilities incurred
in connection with, or resulting from, any such violation or threatened violation.


 


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12.             TERMINATION.


 


A.           By
Either Party. Either party may terminate this Agreement at any time with or without notice, and with or without cause.
Except as provided in this Paragraph 12, upon termination of employment, Employee shall only be entitled to Employee’s accrued
but unpaid base salary and other benefits earned under any Company-provided plans, policies and arrangements for the period preceding
the effective date of the termination of employment.


 


B.           Termination
Without Cause or Resignation for Good Reason. If the Company terminates Employee’s employment without Cause (defined
below) or Employee resigns for Good Reason (defined below), Employee shall be entitled to receive continuing bi-weekly payments
of severance pay at a rate equal to Employee’s Base Salary, as then in effect, for six months from the date of termination
of employment, less all required tax withholdings and other applicable deductions, payable in accordance with the Company’s
standard payroll procedures, commencing on the effective date of a separation agreement with a complete release of claims against
the Company; provided that (1) the first payment shall include any amounts that would have been paid to Employee if payment had
commenced on the date of separation from service; (2) Employee shall not be required to execute a release of any claims arising
from the Company’s failure to comply with its obligations under Paragraph 12A above; and (3) notwithstanding the preceding
provisions of this Paragraph 12B, no severance shall be due or payable unless and until Employee has been employed with the Company
for at least 12 full months. Notwithstanding the foregoing, any payments due under this Paragraph 12B shall commence within 60
days of Employee's termination of employment, provided that if such 60-day period spans two calendar years, payments shall commence
in the latter calendar year.


 


C.           Termination
Upon a Change of Control. If the Company or any successor in interest to the Company terminates Employee’s employment
in connection with or within 12 months after a Change of Control (defined below), Employee shall be entitled to receive continuing
bi-weekly payments of severance pay at a rate equal to Employee’s Base Salary, as then in effect, for twelve months from
the date of termination of employment, less all required tax withholdings and other applicable deductions, payable in accordance
with the Company’s standard payroll procedures, commencing on the effective date of a separation agreement with a complete
release of claims against the Company; provided that the first payment shall include any amounts that would have been paid to Employee
if payment had commenced on the date of separation from service; and further provided that Employee shall not be required to execute
a release of any claims arising from the Company’s failure to comply with its obligations under Paragraph 12A above. The
payments described in this Paragraph 12C are in lieu of, and not in addition to, the payments described in paragraph 12B, it being
understood by Employee that he shall be paid only one severance. Notwithstanding the previous provisions of this Paragraph 12C,
any payments due under this Paragraph 12C shall commence within 60 days of Employee's termination of employment, provided that
if such 60-day period spans two calendar years, payments shall commence in the latter calendar year.


 


D.           Termination
for Cause, Death or Disability, or Resignation Without Good Reason. If Employee’s employment with the Company terminates
voluntarily by Employee without Good Reason, for Cause by the Company or due to Employee’s death or disability, then payments
of compensation by the Company to Employee hereunder will terminate immediately (except as to amounts already earned).


 


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E.            Definitions.


 


(1)      “Cause.”
For all purposes under this Agreement, “Cause” is defined as (i) gross negligence or willful misconduct in the performance
of Employee’s duties and responsibilities to the Company; (ii) commission of any act of fraud, theft, embezzlement, financial
dishonesty or any other willful misconduct that has caused or is reasonably expected to result in injury to the Company; (iii)
conviction of, or pleading guilty or nolo contendere to, any felony or a lesser crime involving dishonesty or moral turpitude;
or (iv) material breach by Employee of any of obligations under any written agreement or covenant with the Company, including the
policies adopted from time to time by the Company applicable to all employees.


 


(2)      “Good
Reason.” For all purposes under this Agreement, “Good Reason” is defined as Employee’s resignation
within 30 days following the expiration of any Company cure period (discussed below) following the occurrence of one or more of
the following, without Employee’s express written consent: (i) a material reduction of Employee’s duties, authority
or responsibilities, relative to Employee’s duties, authority or responsibilities in effect immediately prior to such reduction;
(ii) a material reduction in Employee’s base compensation; or (iii) a material breach by the Company under any written agreement
or covenant with Employee. Employee will not resign for Good Reason without first providing the Company with written notice within
30 days of the event that Employee believes constitutes “Good Reason” specifically identifying the acts or omissions
constituting the grounds for Good Reason and a reasonable cure period of not less than 30 days following the date of such notice
during which such condition shall not have been cured.


 


(3)      “Change
of Control.” For all purposes under this Agreement, “Change of Control” of the Company is defined as:


 


(a)          a
sale, transfer or disposition of all or substantially all of the Company’s assets other than to (i) a corporation or other
entity of which at least a majority of its combined voting power is owned directly or indirectly by the Company, (ii) a corporation
or other entity owned directly or indirectly by the holders of capital stock of the Company in substantially the same proportions
as their ownership of Company common stock.


 


(b) any merger,
consolidation or other business combination transaction of the Company with or into another corporation, entity or person, other
than a transaction with or into an Excluded Entity, being another corporation, entity or person in which the holders of at least
a majority of the shares of voting capital stock of the Company outstanding immediately prior to such transaction continue to hold
(either by such shares remaining outstanding in the continuing entity or by their being converted into shares of voting capital
stock of the surviving entity) a majority of the total voting power represented by the shares of voting capital stock of the Company
(or the surviving entity) outstanding immediately after such transaction; or


 


(c)          any
acquisition of at least a majority of the shares of voting capital stock of the Company by any corporation, entity or person or
group of corporations, entities or persons acting in concert, other than an Excluded Entity.


 


For the avoidance of
doubt, a liquidation, dissolution or winding up of the Company or change in the state of the Company’s incorporation shall
not constitute a Change of Control event for purposes of this Agreement.


 


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F.            Exclusive
Remedy. In the event of a termination of Employee’s employment with the Company, the provisions of this Paragraph 12
are intended to be and are exclusive and in lieu of any other rights or remedies to which Employee or the Company may otherwise
be entitled.


 


13.            GENERAL
PROVISIONS.


 


A.           Governing
Law; Consent To Personal Jurisdiction. The laws of the State of Colorado govern this Agreement without regard to conflict of
laws principles. Employee and the Company each hereby consents to the personal jurisdiction of the state courts located in the
City and County of Dayton, Montgomery, State of Ohio, and the federal district court sitting in the City and County of Cincinnati,
Hamilton, State of Ohio, if that court otherwise possesses jurisdiction over the matter, for any legal proceeding concerning Employee’s
employment or termination of employment, or arising from or related to this Agreement or any other agreement executed between Employee
and the Company. Should an action be brought to enforce the terms of this Agreement, the prevailing party shall be entitled to
recover reasonable attorneys’ fees and costs incurred in prosecuting the action.


 


B.            Entire
Agreement. This Agreement sets forth this entire Agreement between the Company (and any of its related or affiliated entities,
officers, agents, owners or representatives) and Employee relating to the subject matter herein, and supersedes any and all prior
discussions and agreements, whether written or oral, on the subject matter hereof. To the extent that this Agreement may conflict
with the terms of another written agreement between Employee and the Company, the terms of this Agreement will control.


 


C.            Modification.
No modification of or amendment to this Agreement will be effective unless in writing and signed by Employee and an authorized
representative of the Company.


 


D.            Waiver.
The Company’s failure to enforce any provision of this Agreement shall not act as a waiver of its ability to enforce that
provision or any other provision. The Company’s failure to enforce any breach of this Agreement shall not act as a waiver
of that breach or any future breach. No waiver of any of the Company’s rights under this Agreement will be effective unless
in writing. Any such written waiver shall not be deemed a continuing waiver unless specifically stated, and shall operate only
as to the specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to
any act other than that specifically waived.


 


E.            Successors
and Assigns. This Agreement shall be assignable to, and shall inure to the benefit of, the Company’s successors and assigns.
Employee shall not have the right to assign his/her rights or obligations under this Agreement.


 


F.            Construction.
The language used in this Agreement will be deemed to be language chosen by Employee and the Company to express their mutual intent,
and no rules of strict construction will be applied against either party.


 


G.            Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be enforceable, and all of which together shall
constitute one agreement. Signatures of the parties that are transmitted in person or by facsimile or e-mail shall be accepted
as originals.


 


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H.           Further
Assurances. Employee agrees to execute any proper oath or verify any document required to carry out the terms of this Agreement.


 


I.            Title
and Headings. The titles, captions and headings of this Agreement are included for ease of reference only and will be disregarded
in interpreting or construing this Agreement.


 


J.            Notices.
All notices and communications that are required or permitted to be given under this Agreement shall be in writing and shall be
sufficient in all respects if given and delivered in person, by electronic mail, by facsimile, by overnight courier, or by certified
mail, postage prepaid, return receipt requested, to the receiving party at such party’s address shown in the signature blocks
below or to such other address as such party may have given to the other by notice pursuant to this Paragraph. Notice shall be
deemed given (i) on the date of delivery in the case of personal delivery, electronic mail or facsimile, or (ii) on the delivery
or refusal date as specified on the return receipt in the case of certified mail or on the tracking report in the case of overnight
courier.


 


K.           409A.
The amounts payable under this Agreement are intended to be exempt from the requirements of Section 409A of the Internal Revenue
Code of 1986, as amended ("Section 409A"). To the extent that any such payments are determined to be subject to Section
409A, (i) the terms of this Agreement shall be interpreted to avoid incurring any penalties under Section 409A, (ii) any payments
due upon a termination of employment shall only be payable if the termination constitutes a "separation from service"
within the meaning of Section 409A, (iii) any right to a series of installment payments is to be treated as a right to a series
of separate payments, and (iv) any payments due to a "specified employee" of a publicly-traded company upon a separation
from service shall be delayed until the first day of the seventh month following such separation from service. Notwithstanding
the foregoing, in no event shall the Company be responsible for any taxes or penalties due under Section 409A.


 


14.            EMPLOYEE’S
ACKNOWLEDGMENTS. Employee acknowledges that he/she is executing this Agreement voluntarily and without duress or undue influence
by the Company or anyone else and that Employee has carefully read this Agreement and fully understands the terms, consequences,
and binding effect of this Agreement.


 


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IN WITNESS WHEREOF,
and intending to be legally bound, the parties have executed this Agreement as of the date first written above.


 


	EMPLOYEE	 	X-SPINE SYSTEMS, INC.
	 	 	 	 	 
	Print Name:	David Kirschman 	 	Print Name:	Daniel Goldberger


 


	Signature:	/s/ David Kirschman 	 	Signature:	/s/ Daniel Goldberger


 


	Address:	5101 Garden Spa Ct.	 	Title:	CEO 


 


	Phone:	937-416-9626	 	 	 


 


	Email:	DK@X-Spine.com 	 	 	 


 


[Signature Page to Employment Agreement]


 


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EXHIBIT A


LIST OF PRIOR INVENTIONS AND ORIGINAL
WORKS OF AUTHORSHIP


 


IS A LIST ATTACHED? (PLEASE CHECK): _____YES
_____NO


 


NOTE: The following is a list of
all Prior Inventions made, conceived, developed or reduced to practice by Employee prior to his/her employment with the Company.
IF NO SUCH LIST IS ATTACHED, THAT MEANS EMPLOYEE IS NOT ASSERTING THE EXISTENCE OF ANY PRIOR INVENTIONS.


 


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EXHIBIT B


 


TERMINATION CERTIFICATE


 


I hereby represent and certify that I have
in all material respects complied with my obligations to the Company under the Employment Agreement between the Company and me
to which the form of this Certificate is attached as Exhibit B.


 


I also represent that on or before my last day, I have specifically
returned the following items:


 





		 ̈	Computer/laptop



 


		 ̈	Keys/access cards



 


		 ̈	Company credit card



 


		 ̈	Other equipment (please list)__________________________________________________________________



____________________________________________________________________________________________







 


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