# EDGAR Filing Document

**Accession Number:** 0002121708
**File Stem:** 0001437749-26-008869
**Filing Date:** 2026-3
**Character Count:** 1662169
**Document Hash:** c2747c9402f1898b393283ca324086a4
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-26-008869.hdr.sgml**: 20260318

**ACCESSION NUMBER**: 0001437749-26-008869

**CONFORMED SUBMISSION TYPE**: 10-12G

**PUBLIC DOCUMENT COUNT**: 39

**FILED AS OF DATE**: 20260318

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Imricor Medical Systems, Inc.
- **CENTRAL INDEX KEY:** 0002121708

**ORGANIZATION NAME:**
- **EIN:** 204914480
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 10-12G
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56826
- **FILM NUMBER:** 26770335

**BUSINESS ADDRESS:**
- **STREET 1:** 400 GATEWAY BLVD.
- **CITY:** BURNSVILLE
- **STATE:** MN
- **ZIP:** 55337
- **BUSINESS PHONE:** (952) 818-8400

**MAIL ADDRESS:**
- **STREET 1:** 400 GATEWAY BLVD.
- **CITY:** BURNSVILLE
- **STATE:** MN
- **ZIP:** 55337

[**Table of Contents**](#toc)

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**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

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**FORM 10**

**GENERAL FORM FOR REGISTRATION OF SECURITIES**

**Pursuant to Section 12(b) or (g) of The Securities Exchange Act of 1934**

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**IMRICOR MEDICAL SYSTEMS, INC.**

(Exact name of registrant as specified in its charter)

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| | |
|:---|:---|
| **Delaware**<br> (State or other jurisdiction of incorporation or organization) | **20-4914480**<br> (I.R.S. Employer Identification No.) |
| **400 Gateway Blvd.**<br> **Burnsville, Minnesota**<br> (Address of principal executive office) | **55337**<br> (Zip Code) |

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**(952) 818-8400**<br> (Registrant's telephone number, including area code)

**Securities to be registered pursuant to Section 12(b) of the Act: None**

**Securities to be registered pursuant to Section 12(g) of the Act:**

**Class A Common Stock, par value $0.0001 per share**

(Title of class)

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☐ <br> Non-accelerated filer ☒ Smaller reporting company ☒ <br> Emerging growth company ☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

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**TABLE OF CONTENTS**

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;&nbsp; Item 1. | [Business](#i1) | [6](#i1) |
| &nbsp;&nbsp;&nbsp; Item 1A. | [Risk Factors](#i1a) | [23](#i1a) |
| &nbsp;&nbsp;&nbsp; Item 2. | [Financial Information](#i2) | [57](#i2) |
| &nbsp;&nbsp;&nbsp; Item 3. | [Properties](#i3) | [72](#i3) |
| &nbsp;&nbsp;&nbsp; Item 4. | [Security Ownership of Certain Beneficial Owners and Management](#i4) | [73](#i4) |
| &nbsp;&nbsp;&nbsp; Item 5. | [Directors and Executive Officers](#i5) | [75](#i5) |
| &nbsp;&nbsp;&nbsp; Item 6. | [Executive Compensation](#i6) | [80](#i6) |
| &nbsp;&nbsp;&nbsp; Item 7. | [Certain Relationships and Related Transactions, and Director Independence](#i7) | [92](#i7) |
| &nbsp;&nbsp;&nbsp; Item 8. | [Legal Proceedings](#i8) | [97](#i8) |
| &nbsp;&nbsp;&nbsp; Item 9. | [Market Price of and Dividends on the Registrant's Common Equity and Related Stockholder Matters](#i9) | [98](#i9) |
| &nbsp;&nbsp;&nbsp; Item 10. | [Recent Sales of Unregistered Securities](#i10) | [100](#i10) |
| &nbsp;&nbsp;&nbsp; Item 11. | [Description of Registrant's Securities to be Registered](#i11) | [102](#i11) |
| &nbsp;&nbsp;&nbsp; Item 12. | [Indemnification of Directors and Officers](#i12) | [107](#i12) |
| &nbsp;&nbsp;&nbsp; Item 13. | [Financial Statements and Supplementary Data](#i13) | [F-](#i13)[1](#i13) |
| &nbsp;&nbsp;&nbsp; Item 14. | [Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](#i14) | [109](#i14) |
| &nbsp;&nbsp;&nbsp; Item 15. | [Financial Statements and Exhibits](#i15) | [110](#i15) |
| [**SIGNATURES**](#sigs) | [**SIGNATURES**](#sigs) | [112](#sigs) |

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**Introductory Note**

Imricor Medical Systems, Inc., a Delaware corporation (the "Company"), is filing this Registration Statement on Form 10 (as may be amended from time to time, the "Registration Statement") with the Securities and Exchange Commission ("SEC") under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), on a voluntary basis to register our common stock, par value $0.0001 per share. The common stock is publicly traded on the Australian Securities Exchange ("ASX") under the ticker "IMR", in the form of Clearing House Electronic Subregister System ("CHESS") Depositary Interests ("CDIs"), each representing one share of our Class A common stock. CDIs are units of beneficial ownership in our shares of Class A common stock held by CHESS Depositary Nominees Pty Limited ("CDN"), a wholly owned subsidiary of ASX Limited, the company that operates the ASX. Unless the context requires otherwise, all references to our common stock in this Registration Statement refer to our Class A common stock. For purposes of this Registration Statement, unless otherwise noted, each of the "Company," "we," "us," "our," and "Imricor" refers to Imricor Medical Systems, Inc. and its consolidated subsidiary, Imricor B.V.

This Registration Statement will become effective automatically by lapse of time 60 days from the date of its filing pursuant to Section 12(g)(1) of the Exchange Act. As of the effective date of the Registration Statement, we will be subject to the requirements of Regulation 13(a) under the Exchange Act and will be required to file annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, and we will be required to comply with all other obligations of the Exchange Act applicable to issuers filing registration statements pursuant to Section 12(g) of the Exchange Act.

We own or have rights to various trademarks, service marks, and trade names that we use in connection with the operation of our business. All other trademarks, trade names, and service marks mentioned in this Registration Statement are the property of their respective owners. Solely for convenience, our trademarks, service marks, and trade names referred to in this Registration Statement may appear without the®, TM or SM symbols, but such references are not intended to indicate, in any way, that we will not assert, to the fullest extent under applicable law, our rights or the rights of the applicable licensor to these trademarks, service marks, and trade names.

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The market data and other statistical information contained in this Registration Statement are based on independent industry publications, government publications, reports by market research firms, other publicly available information, and management estimates. Management estimates are derived from publicly available information released by independent industry analysts and third-party sources, as well as data from our internal research, and are based on assumptions made by us upon reviewing such data and our knowledge of such industry and markets, which we believe to be reasonable. Any industry forecasts are based on data (including third-party data), models, and experience of various professionals and are based on various assumptions, all of which are subject to change without notice. Projections, assumptions, and estimates of the future performance of the industry in which we operate, and our future performance are necessarily subject to uncertainty and risk due to a variety of factors, including those described in "Risk Factors" and "Disclosure Regarding Forward-Looking Statements." These and other factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.

Unless indicated otherwise in this Registration Statement, all references to "$", "US$", or "dollars" refer to United States dollars, the lawful currency of the United States of America.

**Implications of Being an Emerging Growth Company**

As a company with less than $1.235 billion of revenue during our last fiscal year, we qualify as an "emerging growth company," as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). As such, we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to:

● exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act");

● exemption from any requirement that may be adopted by the Public Company Accounting Oversight Board (the "PCAOB") regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements, unless the SEC determines that the application of such requirements to emerging growth companies is necessary;

● exemption from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved by stockholders;

● option to adopt new or revised accounting standards on the same timeline as private companies through the extended transition period permitted under Section 13(a) of the Exchange Act and Section 107 of the JOBS Act;

● reduced financial statement disclosure obligations, permitting the presentation of only two years of audited financial statements in a registration statement, rather than three; and

● reduced disclosure obligations regarding executive compensation arrangements in our periodic reports, registration statements, and proxy statements.

We will remain an emerging growth company until the earlier of (i) the last day of our fiscal year following the fifth anniversary of the date of our first sale of our common stock pursuant to an effective registration statement under the Securities Act of 1933, as amended (the "Securities Act"); (ii) the last day of the fiscal year in which our total annual gross revenues equal or exceed $1.235 billion; (iii) the last day of the fiscal year in which we become a large accelerated filer, which generally requires (a) our market value of our ordinary shares held by non-affiliates (public float) exceeds $700 million as of the end of our second fiscal quarter, (b) we have been subject to the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 for at least twelve months, and (c) we have filed at least one annual report pursuant to those sections; and (iv) the date on which we have issued more than $1 billion in non-convertible debt securities over the prior three-year period.

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Additionally, we are a "smaller reporting company" as defined in Item 10(f)(1) of Regulation S-K. We may continue to be a smaller reporting company even after we are no longer an emerging growth company. Smaller reporting companies may take advantage of certain scaled disclosure obligations, including, among other things, providing only two years of audited financial statements and reduced disclosure obligations regarding executive compensation in our periodic reports, registration statements, and proxy statements. We will remain a smaller reporting company for each fiscal year in which, as of the end of that year's second fiscal quarter, either (i) the market value of our ordinary shares held by non-affiliates (public float) is less than $250 million, or (ii) our annual revenues are less than $100 million in such completed fiscal year and either (a) we have no public float, or (b) our public float is less than $700 million.

We have elected to take advantage of certain reduced disclosure obligations in this Registration Statement and may elect to take advantage of other reduced reporting requirements in future filings. As a result, the information that we provide to our stockholders may be different from what you might receive from other public reporting companies in which you hold equity interests.

**Disclosure Regarding Forward-Looking Statements**

The statements contained in this Registration Statement that are not purely historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Our forward-looking statements include, but are not limited to, statements regarding our expectations, hopes, beliefs, intentions, or strategies regarding the future. In addition, any statements that refer to projections, forecasts, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "will," "may," "expect," "intend," "seek," "would," "should," "could," "continue," "plan," "estimate," "anticipate," "believe," "probability," "risk," "aim," or other similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward looking. Forward-looking statements in this Registration Statement may include, for example, statements about the topics below and are subject to risks and uncertainties including without limitation those described below:

● our ability to obtain and maintain regulatory clearances and approvals for our products in the European Union, the Middle East, the United States, and other jurisdictions, and the timing of such clearances and approvals

● the clinical and commercial success of our Vision-MR Ablation Catheter, NorthStar Mapping System, and related Magnetic Resonance Imaging ("MRI")-compatible products for cardiac catheter ablation procedures

● the adoption and market acceptance of MRI-guided cardiac ablation technology by hospitals, clinics, and physicians

● our ability to compete effectively with established competitors in the cardiac ablation market, including competition from pulsed field ablation technologies

● our ability to achieve and sustain profitability and positive cash flow

● our reliance on MRI manufacturers for integration of our products with their equipment systems

● our ability to scale manufacturing operations to meet commercial demand

● our dependence on third-party suppliers, including single-source suppliers, for critical product components

● our ability to attract, retain, and train qualified personnel, including sales, clinical, and research and development staff

● our ability to obtain adequate reimbursement from third-party payers for procedures using our products

● our ability to maintain satisfactory pricing and margins for our products

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● our reliance on a limited number of customers and our ability to broaden our customer base

● the success of our research and development programs and our ability to develop new products and expand applications to treat additional cardiac arrhythmias

● our ability to protect and enforce our intellectual property rights

● our future capital requirements and ability to obtain additional financing on acceptable terms

● the impact of foreign currency exchange rate fluctuations on our financial results

● our status as an emerging growth company and smaller reporting company

● the impact of healthcare policy changes and reforms on our business

The forward-looking statements contained in this Registration Statement are based upon our expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated or that any such developments will have the effects we expect. These forward-looking statements involve a number of risks, uncertainties, or assumptions, many of which are beyond our control, which may cause actual results or performance to differ materially from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described in the "Risk Factors" section of this Registration Statement.

These forward-looking statements speak only as of the date of this Registration Statement. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required under applicable securities laws.

**Sources of Additional Information**

We will be subject to the requirements of Section 13(a) under the Exchange Act, which requires us to file annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and proxy statements with the SEC. We will also be required to comply with all other obligations of the Exchange Act applicable to issuers filing registration statements pursuant to Section 12(g) of the Exchange Act.

Electronic copies of the materials we file with the SEC will be available to the public at the web site maintained by the SEC at http://www.sec.gov.

We also maintain a website at http://www.imricor.com, at which you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with or furnished to the SEC. Our website and the information contained therein or connected thereto shall not be deemed to be incorporated into this Registration Statement. We have included our website address as an inactive textual reference only.

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| **Item 1.** | **Business** |

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**Overview and Company History**

Imricor Medical Systems, Inc. ("Imricor," "we," "us," "our," or the "Company") is a medical technology company pioneering the development and commercialization of magnetic resonance imaging ("MRI")-compatible interventional products for cardiac ablation and other procedures. Headquartered in Burnsville, Minnesota and incorporated in Delaware in 2006, Imricor is dedicated to transforming the treatment of cardiac arrhythmias and other interventions by leveraging MRI guidance, periprocedurally, with the aim of delivering superior clinical outcomes, improved procedural safety, lower treatment costs, and the elimination of radiation exposure for patients and medical personnel alike.

The broadest description of the field Imricor is pioneering is "interventional magnetic resonance" or "iMR," meaning interventional procedures which utilize periprocedural magnetic resonance imaging for guidance within the body. We are focused, initially, on cardiovascular interventional procedures, which we call "interventional cardiac magnetic resonance" or "iCMR" procedures. iCMR is a subset field of iMR. More specifically, the first cardiovascular iCMR procedures we are delivering are cardiac ablations for the treatment of arrhythmias.

***Our Mission and Value Proposition***

Cardiac arrhythmias affect millions of patients worldwide and represent a rapidly growing healthcare challenge. Current standard-of-care ablation procedures rely on X-ray fluoroscopy for basic procedural guidance, which provides limited visualization of cardiac tissue structures, arrhythmogenic substrate, therapy lesions, and potential complications. We believe these limitations contribute to suboptimal, first-time procedural success rates, prolonged procedure times, additional costs, and increased risk of complications. In addition, X-ray fluoroscopy exposes patients and medical staff to cumulative doses of ionizing radiation, which we believe contributes to a treatment and work environment in which safety is suboptimal for patients and medical staff.

Imricor's iCMR cardiac ablation technology addresses these fundamental limitations by delivering MRI-compatible systems and tools that allow physicians to perform cardiac ablations that are guided by MRI rather than X-ray. This means the patient is imaged with MRI throughout the procedure, and the use of periprocedural MRI opens new possibilities for patients and physicians. MRI allows the physician to see the heart in detail, and also to see the tissue characteristics of the heart muscle that may be causing the arrhythmia (the arrhythmogenic substrate). After therapy delivery (ablating), MRI can determine the quality of the ablation lesions, providing the ability for physicians to check their work, prior to sending a patient home. This is not possible with X-ray, and with MRI, it offers the potential to improve first-time procedural success. Because MRI can directly visualize the heart and arrhythmogenic substrate, time need not be spent generating surrogate guidance volumes and electrophysiological mapping time may be reduced. In addition, certain tools often used in a conventional X-ray procedure may not be needed in an iCMR procedure, due to the MRI's ability to visualize soft tissue. One example is an intracardiac echo ("ICE") catheter for transseptal crossings, which is used in a conventional X-ray procedure to provide real-time imaging of cardiac structures. iCMR provides high fidelity real-time visualization of the interatrial septum, a thin wall separating the right and left atria, that is crossed in order to perform left-sided cardiac procedures. The native imaging capabilities of the MRI allow for the visualization of this structure to guide the crossing without the need for an additional device to be inserted in the heart.

Finally, there is increasing awareness of the dangers associated with working in an X-ray environment, including direct exposure to ionizing radiation and the orthopedic stresses of wearing heavy protective lead garments daily. X-ray labs expose patients and medical personnel to ionizing radiation, and this exposure is eliminated by the adoption of an iCMR or iMR lab, creating a safer treatment environment for patients and a safer work environment for medical personnel.

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***Corporate History and Development***

Imricor was founded in 2006 in Savage, Minnesota by a team comprising engineers and doctors, who recognized the transformative potential of interventional MRI for cardiac procedures. From inception, the Company pursued collaborative relationships with leading academic medical centers, MRI equipment manufacturers, and other third-party partners to overcome the substantial technical challenges inherent in developing all the devices needed to perform complex cardiac ablations safely and effectively in an MRI environment. The Company's key corporate and technology milestones are summarized as follows:

● **2006**: Company incorporated in Delaware; headquarters and early research operations established in Savage, Minnesota

● **2007**: Established headquarters facility including research and development ("R&D") and manufacturing space in Burnsville, Minnesota

● **2009**: Achieved breakthrough innovations in MRI compatibility technology with creation of technology for electrophysiology catheters, enabling safe device operation in MRI environments

● **2011**: Conducted first-in-human MRI-guided cardiac ablation procedures at Leipzig Heart Center in Germany, demonstrating clinical feasibility and safety of the Advantage-MR®<sup></sup>platform and Vision-MR® consumables.

● **2014:** Conducted first human pilot study using Active magnetic resonance ("MR") Tracking at King's College London

● **2015:** Entered joint research agreement with Siemens supporting MR-guided EP and cardiovascular intervention research

● **2016**: Received CE Mark approval for Advantage-MR EP Recorder/Stimulator System, enabling commercial sales in the European Union

● **August 2019**: Completed initial public offering on the Australian Securities Exchange (ASX: IMR), raising capital to accelerate commercialization and expand clinical development programs

● **January 2020**: Received CE Mark approval for Vision-MR Ablation Catheter (with an indication for treating Type I atrial flutter) and Vision-MR Dispersive Electrode, marking the commercial launch of our consumable device portfolio

● **2022-2025**: Transitioned all CE Mark certifications from the European Medical Device Directive ("MDD") to the more rigorous European Union Medical Device Regulation ("EU-MDR") framework, to ensure ongoing European market access and regulatory compliance

● **March 2024**: Received CE Mark under EU-MDR for Vision-MR Diagnostic Catheter, expanding our consumable device portfolio

● **June 2024**: Enrolled first patient in Vision-MR Ablation of Atrial Flutter ("VISABL-AFL") clinical trial at Institut Cardiovasculaire Paris Sud ("ICPS") in France, initiating U.S. Food and Drug Administration ("FDA") approval pathway

● **August 2024**: Enrolled first U.S. patient in VISABL-AFL clinical trial at Johns Hopkins Hospital

● **March 2025**: Established Imricor B.V., our Dutch subsidiary, to support clinical research activities in the European Union and facilitate direct collaboration with European medical centers

● **June 2025**: Received CE Mark under EU-MDR for our NorthStar Mapping System ("NorthStar"), the world's first commercial MRI-native cardiovascular mapping and guidance platform

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● **October 2025**: Treated first ischemic ventricular tachycardia ("VT") patient in Vision-MR Ablation of VT ("VISABL-VT") clinical trial

● **January 2026**: Received FDA clearance under 510(k) pathway for the Vision-MR Diagnostic Catheter and NorthStar Mapping System

***Current Stage of Development and Commercialization***

As of the date of this filing, Imricor is in the early commercial stage of operations in the European Union ("EU"), the Middle East ("ME"), and the United States ("U.S."). In the EU, we have active commercial sales of capital equipment (Advantage-MR<sup>®</sup>, NorthStar<sup>®</sup>) and consumable devices (Vision-MR<sup>®</sup> Ablation Catheter, Diagnostic Catheter, Dispersive Electrode). In the ME, we are preparing for commercial sales in Qatar and the Kingdom of Saudi Arabia ("Saudi Arabia" or "KSA") through exclusive distribution partnerships. In the U.S., we are pursuing regulatory clearances and approvals for several products across multiple FDA pathways, including 510(k) and premarket approval ("PMA"). The Vision-MR Diagnostic Catheter and NorthStar Mapping System are the first two Imricor devices to gain 510(k) clearance.

We operate at a pre-profitability stage, with revenue generated primarily from European sales of capital equipment and consumable devices. Our business strategy prioritizes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Growing adoption and sales across the EU;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Initiating and growing adoption and sales in the ME; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Gaining market access and growing adoption and sales in the U.S.

**Industry Background**

***Cardiac Arrhythmias: Clinical Overview and Burden of Disease***

Cardiac arrhythmias are abnormal heart rhythms caused by disruptions in the heart's electrical conduction system. These conditions range from benign rhythm irregularities to life-threatening disorders that can lead to stroke, heart failure, or sudden cardiac death. The most common clinically significant arrhythmias include:

● **Atrial Fibrillation (** "**AF** "**)**: According to a 2025 analysis published in *Europace*, AF is the most prevalent sustained cardiac arrhythmia, affecting an estimated 50 million people globally. AF occurs when the atria beat out of coordination with the ventricles (lower chambers). It is caused by erratic electrical signals, normally originating in the left atrium, which lead to a quivering or twitching of the atria. AF causes irregular, rapid atrial contractions that impair cardiac output and significantly increase stroke risk (5-fold elevation). According to a 2025 review in *Arrhythmia and Electrophysiology Review*, AF prevalence increases dramatically with age, with men and women over age 40 having a one in four chance of developing AF in their lifetime. The disease burden is substantial: AF patients suffer from fatigue, dyspnea, reduced exercise capacity, and diminished quality of life. AF also substantially increases healthcare costs through hospitalizations, emergency department visits, and stroke prevention therapies.

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● **Atrial Flutter (** "**AFL** "**)**: According to a population-based analysis published in the *Journal of the American College of Cardiology* in 2000, which remains a reference point in recent health-economic analyses, AFL is a macro-reentrant tachycardia affecting approximately 200,000 new patients annually in the United States alone. AFL is similar to AF, but is less chaotic, as the rhythm in the atria is more organized than the abnormal patterns commonly experienced by patients with AF. In AFL, the atria (upper chambers) of the heart beat too fast, which results in atrial muscle contractions that are faster than and out of sync with the ventricles. Type I atrial flutter involves a reentrant circuit around the tricuspid valve annulus in the right atrium, representing the most common form of organized atrial arrhythmia. Left untreated, atrial flutter shares AF's stroke risk profile and frequently coexists with or progresses to AF. According to a 2017 review in *Arrhythmia and Electrophysiology Review* **,** Type I atrial flutter is highly responsive to catheter ablation, with reported success rates exceeding 90% in appropriately selected patients.

● **Ventricular Tachycardia (** "**VT** "**)**: A potentially life-threatening arrhythmia that is associated with a rapid heart rhythm originating in the heart's ventricles, commonly affecting patients with structural heart disease (prior myocardial infarction, cardiomyopathy). The rapid heart rate may not allow the ventricles to fill and contract efficiently to pump enough blood to the body. VT can degenerate into ventricular fibrillation and sudden cardiac death. VT is particularly common in patients with prior myocardial infarction, where scar tissue creates reentrant circuits that sustain the arrhythmia. Catheter ablation has emerged as an important therapeutic option for patients with VT refractory to antiarrhythmic medication and has been shown to reduce implantable cardioverter defibrillator ("ICD") shocks and improve quality of life.

***Standard of Care: Catheter Ablation Procedures***

For many patients with arrhythmias, catheter ablation has emerged as a highly effective treatment option. During ablation procedures, electrophysiologists navigate specialized catheters through blood vessels into the heart, identify the tissue responsible for generating or sustaining the arrhythmia, and deliver energy (radiofrequency heat, cryogenic cold, or pulsed electric fields) to selectively destroy the targeted tissue, thereby restoring normal heart rhythm.

The fundamental principle underlying all ablation procedures is precise identification and elimination of arrhythmogenic substrate. Success depends on accurate anatomical localization of arrhythmogenic substrate and effective delivery of permanent therapeutic lesions at proper locations. Current X-ray fluoroscopy-guided procedures rely heavily on indirect methods to determine the location of ablation targets and assess therapeutic tissue injury, because X-ray provides no direct visualization of cardiac tissue.

***Market Size and Growth***

The global cardiac ablation market is substantial and growing rapidly. According to *S&S Insider Strategy and Stats*, the market was estimated at approximately $12 billion globally in 2025 with a compound annual growth rate of 12% to 15% projected through 2034. Imricor estimates over 1 million ablation procedures are performed annually worldwide. Steady growth is driven by technological advancements, such as pulsed field ablation ("PFA"), and increasing AF prevalence due to aging populations and comorbidities such as hypertension, obesity, and diabetes. Other market drivers include expanding clinical indications, improved procedural outcomes, reimbursement expansion in developed markets and emerging markets, improved safety profiles, and expanded physician training and diffusion of ablation expertise. According to *Precedence Research*, the United States represents approximately 40-45% of global market value, Europe represents approximately 30% of global market value, and Asia-Pacific and the rest of the world represent approximately 25-30% of global market value.

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***The MRI-Guided Ablation Opportunity***

The addressable market for MRI guided cardiac ablation is the overall $12 billion cardiac ablation market, if Imricor's products are approved for all arrhythmia indications in all geographies. Initially, the market subsets we are focused on include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Centers of Excellence**: High volume academic medical centers and specialized arrhythmia centers with existing cardiac magnetic resonance ("CMR") capabilities, which are easier and faster to convert to iCMR labs, or sites with strong interest in adopting advanced imaging technologies

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Radiation-Sensitive Patients**: Procedures involving patients for which radiation exposure is of particular concern, for example in pediatric settings

Imricor's ablation catheter (Vision-MR Ablation Catheter 2.0) is currently approved in the EU for treatment of Type I atrial flutter, and it is being evaluated in the VISABL-AFL clinical trial to support U.S. FDA approval for Type I atrial flutter. In addition, the Vision-MR Ablation Catheter 2.0 is being evaluated in the VISABL-VT trial in Europe to support an expansion of its indications to include the treatment of ventricular tachycardia. As clinical evidence accumulates through our ongoing VISABL-AFL and VISABL-VT trials, and our indications of use are expanded in various geographies, we anticipate expanding adoption across broader segments of the cardiac ablation market.

**Products and Technology**

Imricor has developed a comprehensive portfolio of MRI-compatible cardiac electrophysiology ("EP") products consisting of capital equipment systems and single-use consumable devices. Our products are specifically engineered to operate safely and effectively within the powerful electromagnetic fields of clinical MRI scanners while delivering the imaging guidance and therapeutic capabilities required for cardiac ablation procedures.

Note that MRI-compatible medical devices are technically labeled as "MR Conditional," which is the language used in the descriptions below.

Our business model emphasizes recurring revenue through consumable devices used in MRI-guided cardiac ablation procedures, supported by capital equipment sales that enable hospital adoption of iCMR technology. This model aligns with industry best practices in medical device commercialization, where capital equipment generates initial revenue and establishes customer relationships, while consumables provide predictable, high-margin revenue streams as procedure volumes grow.

Imricor products are designed to integrate with MRI systems and supporting equipment from leading MRI manufacturers and third-party partners, enabling hospitals to establish complete, turnkey iCMR labs.

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***Capital Equipment Systems***

*Advantage-MR EP Recorder/Stimulator System*

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| ![image01.jpg](image01.jpg) | The Advantage-MR EP Recorder/Stimulator is a MR Conditional cardiac electrophysiology recording system ("EP Recorder") used to measure physiological data in the EP laboratory. It provides high-fidelity signal acquisition and display of intracardiac electrogram ("EGM") and electrocardiogram ("ECG") signals. The system incorporates a cardiac stimulator which facilitates manual and programmed pacing stimulation of the heart. In addition, the Advantage-MR system provides an interface to MRI scanners, through which catheter active tracking coil signals may be passed. Advantage-MR also interfaces and communicates with the ablation generator and NorthStar mapping system, tying all these various systems together in a way that provides a comprehensive iCMR ablation environment.<br>Advantage-MR is approved for commercialization in the EU and ME. The system has been submitted for premarket notification clearance in the U.S., under the FDA's 510(k) process. |

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*NorthStar Mapping System*

The NorthStar<sup>™</sup> Mapping System is an MR Conditional 3D mapping and navigation system for use in iCMR procedures. NorthStar provides a 3D environment in which real-time MR images of the anatomy, 3D representations of the anatomy, and device(s) are displayed. In addition, during EP procedures, NorthStar can display electroanatomical maps (voltage or activation) and/or therapy delivery information. These capabilities allow for procedure planning and guidance, and procedural therapy assessment.

NorthStar communicates with MRI scanners to enable scanner control and real-time image streaming. During ablation procedures, NorthStar also communicates with the Advantage-MR system to facilitate electroanatomical mapping and other capabilities.

![image02.jpg](image02.jpg)

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Key features of NorthStar include:

● **MRI-Native Platform**: Built from the ground up to operate in the MRI suite using MRI image data rather than fluoroscopy-based localization.

● **Real-Time Catheter Visualization**: Displays catheter position dynamically using Imricor's proprietary and patented active tracking technologies.

● **High-Resolution Anatomical Geometry**: Displays detailed 3D anatomy models directly from MRI datasets for outstanding anatomical accuracy.

● **Activation, Voltage & Substrate Mapping**: Supports, in conjunction with the Advantage-MR system, the full range of EP mapping modalities needed for diagnostic and therapeutic electrophysiology (ablation) procedures.

● **Compatibility with Multiple MRI Vendors**: Designed to operate across major MRI platforms, including Siemens and Philips, and shortly GE, providing customers with a wide range of choices for imaging systems when establishing an iCMR lab.

● **Future-Ready Architecture**: Software platform engineered to support ongoing enhancements, including PFA integration, advanced substrate imaging, and automated lesion assessment.

NorthStar is approved/cleared for commercialization in the U.S. (currently operating with the Siemens platform only) and EU (currently operating with the Siemens and Philips platforms), and has been submitted to the Saudi Food and Drug Authority for Medical Device Marketing Authorization.

*RF-5000 Ablation Generator System*

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| ![image03.jpg](image03.jpg) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The RF-5000 ablation generator system is a set of components: a radiofrequency ("RF") ablation generator, an associated remote control unit, and an irrigation pump. The system is used in iCMR ablation procedures to provide therapeutic RF energy while simultaneously cooling the catheter tip. The system communicates with the Advantage-MR system which then communicates with NorthStar to provide a comprehensive ablation solution.<br>The RF-5000 ablation generator system was designed in collaboration with Osypka GmbH and livetec Ingenieurbüro GmbH, both in Germany, and based on the HAT500 RF ablation generator system. The HAT500 is approved for commercialization in the EU. The HAT500 is being evaluated in the VISABL-AFL clinical trial to support U.S. FDA approval. Design transfer from the HAT500 to the Imricor-branded RF-5000 is ongoing in 2026. |

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***Consumable Devices*** – ***Vision-MR and NavTrac-MR Families***

Our Vision-MR and NavTrac-MR family of consumable devices represents the core of our commercial strategy and recurring revenue model. These single-use devices are essential components of MRI-guided cardiac ablation procedures. We have deliberately designed these products to look, feel, and function like standard consumable devices used in conventional fluoroscopic guided ablation procedures.

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*Vision-MR Ablation Catheter 2.0*

Our flagship product is a steerable cardiac ablation catheter specifically designed for use in MRI environments and capable of delivering RF ablation energy under real-time MRI guidance. The Vision-MR Ablation Catheter 2.0 is a steerable catheter available with either a 32mm or 48mm curve diameter, with integrated gold electrodes enabling thermal ablation of cardiac tissue and electrical sensing and pacing.

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| ![image04.jpg](image04.jpg) | The catheter is constructed from MRI-compatible materials and incorporates proprietary and patented design features enabling active device tracking and safe operation in MRI environments.<br>The Vision-MR Ablation Catheter 2.0 is currently approved in the EU and ME for treatment of Type I atrial flutter and it is being evaluated in the VISABL-AFL clinical trial to support U.S. FDA approval for Type I atrial flutter. In addition, the Vision-MR Ablation Catheter 2.0 is being evaluated in the VISABL-VT clinical trial in Europe to support an expansion of its indications to include the treatment of ventricular tachycardia. |

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| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <br> *Vision-MR Diagnostic Catheter*<br>The Vision-MR Diagnostic Catheter is an MR Conditional deflectable multi-electrode diagnostic catheter designed for electrophysiological mapping of the heart (i.e. sensing and pacing).<br>The Vision-MR Diagnostic Catheter is approved/cleared for commercialization in the EU, ME, and U.S.<br>*Vision-MR Dispersive Electrode*<br>The Vision-MR Dispersive Electrode is an MR Conditional sterile, single-use dispersive return electrode required to complete the radiofrequency ablation circuit during an ablation procedure. | ![image05.jpg](image05.jpg) |

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The Vision-MR Dispersive Electrode is approved for commercialization in the EU and ME, and has been submitted for premarket notification clearance in the U.S., under the FDA's 510(k) process.

*NavTrac-MR Steerable Introducer*

The NavTrac-MR Steerable Introducer is an MR Conditional steerable sheath and dilator used to better position the Vision-MR Ablation Catheter 2.0, Vision-MR Diagnostic Catheter, or the NavTrac-MR Transseptal Needle during ablation procedures.

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The NavTrac-MR Steerable Introducer is currently being evaluated in the VISABL-AFL and VISABL-VT trials in the U.S. and Europe to support EU, ME, and U.S. approvals/clearances.

*NavTrac-MR Transseptal Needle*

The NavTrac-MR Transseptal Needle is an MR Conditional polymer needle used in conjunction with the NavTrac-MR Steerable Introducer and NavTrac-MR Dilator for gaining left-sided access during ablation procedures.

The NavTrac-MR Transseptal Needle is currently being evaluated in the VISABL-VT trial in Europe to support EU, ME, and U.S. approvals/clearances.

***Product Pipeline and Development Programs***

*Pulsed Field Ablation Research*

While our current commercial focus is on RF ablation in the MRI environment, we recognize that pulsed field ablation represents an emerging, high-growth ablation modality. We are in early-stage research activities to evaluate the MRI compatibility and clinical applicability of PFA energy delivery in the MRI environment.

Pulsed field ablation offers potential clinical advantages over RF ablation, and we believe MRI guidance can provide benefits to PFA in the same way it does for RF ablation, including superior periprocedural tissue visualization, arrhythmogenic substrate imaging, and lesion assessment. We believe MRI is an imaging modality that can enhance the utilization of any ablation energy source, including RF, cryo, and PFA, and we aim to deliver iCMR solutions for whatever ablative energy source physicians prefer.

*MRI Guided Endomyocardial Biopsy Device*

MRI-guided endomyocardial biopsy is a potentially groundbreaking procedure used to obtain targeted myocardial tissue samples for diagnostic, therapeutic, and research purposes, particularly in cases of myocarditis, cardiac sarcoidosis, infiltrative cardiomyopathies, and emerging molecular and genetic profiling applications. Today, biopsy procedures are performed under X-ray fluoroscopic guidance, which provides limited soft-tissue visualization and forces operators to rely on indirect anatomical landmarks rather than direct real-time targeting of the myocardium. This lack of targeting has limited the usefulness and adoption of cardiac biopsies, relegating it to being primarily used for transplant rejection monitoring which does not require precise tissue targeting. Periprocedural MRI for cardiac biopsies is uniquely suited to address the limitations of X-ray, by offering the ability to visualize and identify target locations on the heart and guiding an MR Conditional biopsy system to those locations for precise sampling.

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| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We believe MRI-guided endomyocardial biopsy represents a meaningful opportunity for innovation. Imricor is developing an MR Conditional endomyocardial biopsy system designed to enable real-time device tracking, precise navigation, and targeted myocardial sampling within the MRI environment, all aimed at enhancing the accuracy, safety, and diagnostic yield of cardiac biopsy procedures. | ![image06.jpg](image06.jpg) |

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**Clinical Development Programs**

Imricor is running two clinical trials, as mentioned above: the VISABL-AFL Trial and the VISABL-VT Trial. The following is a more detailed description of each.

***VISABL-AFL Trial*** – ***FDA Approval Pathway for Type I Atrial Flutter***

The VISABL-AFL (**Vis**ion-MR **Abl**ation of **A**trial **Fl**utter) pivotal clinical trial is a prospective, single-arm, multi-center global investigational study of the safety and efficacy of Type I atrial flutter ablation procedures performed with the Vision-MR Ablation Catheter 2.0 and Osypka HAT500 RF ablation generator system (eventually to be Imricor's RF-5000 ablation generator system). The study includes three sites in Europe, and up to five sites in the U.S., with a sample size of 91 patients.

VISABL-AFL is designed to support U.S. market entry of the studied devices following successful trial completion and FDA approval via the FDA's PMA process.

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The primary endpoints of the trial are (1) confirmation of bidirectional conduction block of the cavotricuspid isthmus ("CTI"), assessed immediately following final ablation energy delivery; and (2) composite of serious cardiovascular adverse events through 7 days post-procedure, adjudicated by an independent clinical events committee. The secondary endpoints of the trial are (1) freedom from documented Type I atrial flutter recurrence at 90 days; and (2) all serious adverse event rate through 3-month study duration.

We anticipate completing enrollment in the VISABL-AFL trial in the second quarter of 2026, with data analysis and FDA submission targeted for the middle of 2026. Regulatory approval timeline is contingent on trial outcomes and FDA feedback.

***VISABL-VT Trial*** – ***European Indication Expansion for Ventricular Tachycardia***

The VISABL-VT (**Vis**ion-MR **Abl**ation of **V**entricular **T**achycardia) is a prospective single-arm, multi-center interventional investigation of the safety and efficacy of RF ablation of ventricular tachycardia associated with ischemic cardiomyopathy performed with the Vision-MR Ablation Catheter 2.0 in the iCMR environment. The study calls for treating 64 patients and includes a 6-month follow-up for each patient, as is typical. Up to 6 European sites are expected to participate in the study.

VISABL-VT is designed to support expanded indications for the Vision-MR Ablation Catheter 2.0 in the EU, to include VT ablation. Successful VT indication approval would substantially expand Imricor's addressable market and clinical impact.

The primary endpoints of the trial are (1) absence of inducible clinical ventricular tachycardia following the last radiofrequency ablation application with the Vision-MR Ablation Catheter 2.0 and (2) composite of any procedure- or device-related serious adverse events through 7 days post-index ablation procedure. The secondary endpoints of the trial are (1) six-month freedom from recurrence of sustained VT or VT requiring intervention, freedom from new or increased dose of Class I or III antiarrhythmic drugs ("AAD") at six months following index ablation and (2) rate of all serious adverse events occurring during follow up. Ancillary endpoints include (1) procedure time, (2) RF time per patient, (3) number of RF applications per patient, (4) fluoroscopy time (expected to be zero with MRI guidance), and (5) performance of supportive investigational devices.

The VISABL-VT trial has achieved several world-first milestones demonstrating the clinical feasibility and safety of MRI-guided ablation for complex ventricular arrhythmias. These milestones include:

● First-in-human MRI-guided left ventricular mapping and ablation (April 2025), with the successful mapping and treatment of premature ventricular complexes ("PVCs") originating from the left ventricle

● First-in-human MRI-guided transseptal crossing (October 2025), with the successful crossing of the atrial septum under real-time MRI guidance to access the left atrium and left ventricle

● First-in-human substrate-guided ablation using periprocedural MRI (October 2025), with the successful identification and ablation of scar-based ventricular tachycardia substrate visualized on MRI during the procedure

● First-in-human MRI-guided ablation in patient with an ICD (October 2025), demonstrating the safe and effective utilization of MRI-guidance for ablation procedures in high-risk patients with an active implantable cardiac device

● First-in-human acute procedural VT ablation success (October 2025), with the patient being non-inducible for VT at completion of ablation

The first-in-human PVC case report was published in JAMA Cardiology in September 2025, documenting successful MR-guided ablation for right and left ventricular outflow tract premature ventricular complexes, resulting in complete PVC suppression (100% reduction in PVC burden), and no procedural complications through 2-month clinical follow-up.

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**Intellectual Property**

Imricor's intellectual property strategy is designed to protect our core innovations in MRI-compatible devices while enabling efficient commercialization through partnerships and licensing arrangements. Our IP portfolio consists of internally developed patents, proprietary trade secrets, and licensed technologies.

***Patent Portfolio***

Imricor has developed and maintains a portfolio of patents covering core technologies for our MRI-compatible devices. We actively file patent applications to protect new developments as our product pipeline advances. Imricor files patent applications in the United States, either directly or as national-stage applications that claim priority to international applications filed under the Patent Cooperation Treaty. We also pursue protection of our intellectual property outside of the United States through the prosecution of national stage applications that claim priority to international applications under the PCT. These PCT applications typically share subject matter with related U.S. applications. National stage applications that claim priority to these PCT applications have been filed in specific jurisdictions, namely Europe, Japan, Australia, Canada, and the United States. Imricor's earliest patents expire in 2030, while new patent applications have been submitted as recently as 2025.

***Trademark and Trade Name Protection***

In addition to protection of intellectual property rights through patents, Imricor pursues protection of its marks through trademark registration. Imricor asserts U.S. trademark rights to the mark VISION-MR, ADVANTAGE-MR, NORTHSTAR, and IMRICOR and other registered marks both foreign and U.S.

***Licensed Intellectual Property***

Imricor holds a Patent License Agreement, which grants us a non-exclusive non-transferable fully-paid worldwide license to certain patents owned by Koninklijke Philips N.V. for technology embodied in the Vision-MR Ablation Catheter 2.0. We also hold a non-exclusive fully-paid worldwide Intellectual Property License to market and manufacture the HAT500 and RF-5000 ablation generator systems from livetec Ingenieurbüro GmbH.

***Proprietary Technologies and Trade Secrets***

Imricor has developed substantial proprietary knowledge and trade secrets that provide competitive advantage, including know-how developed through nearly 20 years of R&D on how to engineer devices that operate safely and effectively in MRI environments; proprietary approaches to integrating imaging, electrophysiology, and ablation technologies; experiential knowledge regarding procedural techniques, workflow design, and best practices for MRI-guided ablation; and specialized manufacturing knowledge for producing MRI-compatible medical devices with consistent quality. This proprietary knowledge is protected through a combination of patents, trade secret agreements with employees and contractors, and operational security measures.

**Regulatory Environment and Strategy**

***European Union Regulatory Framework***

The EU Medical Device Regulation ("EU MDR") governs medical devices in the European Union and focuses on safety, performance, and clinical evidence across the full product lifecycle. Devices are classified by risk (Class I, IIa, IIb, III) and generally require conformity assessment by a Notified Body for higher-risk products. Manufacturers must implement a compliant Quality Management System (ISO 13485), maintain comprehensive Technical Documentation, assign a Person Responsible for Regulatory Compliance ("PRRC"), and meet strict requirements for clinical evaluation, post-market surveillance, and vigilance. The EU MDR framework places strong emphasis on traceability, transparency, and lifecycle oversight, including registration in the European Database on Medical Devices, EUDAMED, and compliance with economic operator responsibilities.

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All Imricor's currently commercialized cardiac electrophysiology products, including the Advantage-MR EP Recorder/Stimulator System, Vision-MR Ablation Catheter 2.0, Vision-MR Dispersive Electrode, Vision-MR Diagnostic Catheter, and NorthStar Mapping System, have received CE Mark certification under the EU MDR.

***U.S. FDA Regulatory Framework***

The FDA regulates medical devices in the United States under the Federal Food, Drug, and Cosmetic Act using a risk-based classification system (Class I, II, and III). Devices are regulated through different pathways depending on risk and intended use, including 510(k) premarket notification, De Novo classification, and premarket approval. Manufacturers must comply with Quality System Regulation ("QSR") (21 CFR Part 820), labeling requirements, registration and listing, and post-market surveillance obligations such as Medical Device Reporting ("MDR"). The FDA framework emphasizes demonstrating substantial equivalence or safety and effectiveness, maintaining manufacturing controls, and ongoing compliance throughout the device lifecycle.

*510(k) Clearance Pathway Devices*

The Vision-MR Diagnostic Catheter and NorthStar Mapping System received market clearance via the 510(k) process in January 2026. We are pursuing or will pursue clearance through the 510(k) pathway for most of our products (other than as stated below), including the Advantage-MR EP Recorder/Stimulator System, and Vision-MR Dispersive Electrode. These submissions have been and will continue to be made sequentially, with the goal of receiving clearance for these devices in 2026.

*Premarket Approval Pathway Devices*

We are pursuing approval of our Vision-MR Ablation Catheter 2.0 (for treating Type I atrial flutter) and RF-5000 ablation generator system through the PMA pathway. We are targeting receipt of FDA approval for these devices in 2026.

*Quality System and Compliance Requirements*

All Imricor manufacturing operations are required to comply with the FDA's QSR and current Good Manufacturing Practices ("cGMP"). Our quality system includes systematic design and development processes ensuring devices meet user needs and intended uses; management of design documentation, manufacturing procedures, and quality procedures; validated manufacturing processes ensuring consistent product quality; real-time monitoring and testing during manufacturing; comprehensive testing of finished devices before release; lot serialization and traceability systems enabling product tracking and recall capability; systems for receiving, investigating, and responding to customer complaints; and systematic processes for addressing quality issues and preventing recurrence.

Imricor maintains ISO 13485:2016 certification, an international standard for medical device quality management systems, which also serves as evidence of compliance with FDA QSR requirements and EU MDR requirements. This certification is maintained through annual surveillance audits by certification bodies, quality management system maintenance and continuous improvement, regular training and employee competency assessment, and a management review process.

***Middle East Regulatory Framework***

Regulatory frameworks across the Middle East vary by country. Approvals for Qatar and Saudi Arabia have been obtained through respective national regulatory pathways, and commercial sales efforts are underway in both markets through East Agency WLL, our exclusive distribution partner in Qatar, and Al Faisaliah Medical Systems, our exclusive distribution partner in Saudi Arabia.

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**Sales, Marketing, Distribution, and Reimbursement**

Imricor has implemented a hybrid sales and distribution model designed to optimize market penetration and capital efficiency across different geographic regions. Our strategy reflects the infrastructure maturity, regulatory environment, and competitive dynamics in each market. We have sales employees in the United States and in Europe. In certain European countries and Middle East countries, we maintain partnerships with local distributors.

***European Union***

As of February 28, 2026, Imricor's European direct sales team comprises five full-time employees: a sales director based in Europe and four sales managers. This team focuses on identifying and engaging academic medical centers, specialized arrhythmia centers, and high-volume EP programs interested in MRI-guided ablation technology; providing physicians with technical training, clinical evidence, and procedural support; supporting hospitals in establishing iCMR labs, including facility design consultation, equipment selection, and workflow optimization; and on-site support during early procedure cases to ensure optimal outcomes and build physician confidence.

***United States***

Imricor is implementing commercialization activities to position for rapid U.S. market entry as portfolio devices gain regulatory clearances and approvals. We are building relationships with leading U.S. electrophysiologists and academic centers to ensure awareness of MRI-guided ablation technology, and we are giving presentations and education programs at major electrophysiology and cardiovascular magnetic resonance conferences. We maintain an ongoing dialogue with the FDA to ensure alignment on our regulatory pathway and post-approval commercialization strategy.

Similar to Europe, the U.S. strategy focuses on centers of excellence, including academic medical centers, specialized arrhythmia centers, and high-volume EP programs. We are establishing a dedicated U.S. direct sales team, and sales force size will be scaled based on market dynamics, product demand, and capital availability.

***Exclusive Distribution Partnerships***

Our sales in the Middle East are made through exclusive distributor partnerships. In Saudi Arabia, Al Faisaliah Medical Systems is our exclusive distributor and has established medical device distribution network and hospital relationships in Saudi Arabia. In Qatar, East Agency WLL is our exclusive distributor and has market expertise and customer relationships in Qatar. Imricor provides distributor partners with product training and clinical education programs, technical support and customer service resources, marketing materials and clinical evidence documentation, and pricing and reorder logistics support.

***Marketing Strategy***

Our primary marketing strategy emphasizes clinical evidence and physician education, focusing on VISABL-VT early results, and real-world outcomes demonstrating safety, efficacy, and procedural efficiency in clinical practice. Additionally, we cultivate relationships with leading electrophysiologists and cardiac imaging specialists who serve as advisors and consultants on clinical and regulatory strategy; generate clinical evidence through trials and real-world outcomes studies; educate peers through presentations, publications, and teaching activities; and advocate for MRI-guided ablation technology adoption.

Imricor offers medical education and physician training. We offer hands-on training, which involves phantom and simulator-based training to provide procedural practice for physicians new to MRI-guided ablation. Additionally, we offer case conferences (physician-led case discussions and technical training), regular presentations at industry conferences and other scientific meetings, and educational materials, such as clinical evidence summaries, technique guides, and safety information for physician reference.

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**Customer Base and Market Segments**

***Primary Customer Segments***

Our primary customer segments include academic medical centers, specialized arrhythmia centers, and high-volume community hospitals.

Academic medical centers include university-affiliated hospitals with clinical research programs, cardiac imaging centers, and high-volume EP services. We look for academic medical centers with strong clinical leadership, infrastructure for new technologies, research interest, and a volume of more than 500 procedures annually. We have initially focused on EU centers and intend to expand to U.S. centers post-FDA approval.

Specialized arrhythmia centers include non-academic hospitals focused on electrophysiology and arrhythmia treatment. We look for specialized arrhythmia centers with high EP procedure volumes, specialized equipment and infrastructure, and experienced EP teams. In the EU, we have initially focused on centers in major metropolitan areas with a concentration of cardiac services.

High-volume community hospitals include large community hospitals with established cardiac programs and high EP procedure volumes. We look for high-volume community hospitals that are volume-driven, workflow-efficient, price-conscious, and quality-focused. We intend to focus on hospitals in the U.S. post-FDA approval.

***Customer Concentration***

Customer concentration risk exists in our early commercialization stage, with sales currently concentrated in a limited number of European hospital systems and country markets. As our European customer base expands and U.S. commercialization begins, we anticipate customer concentration declining to typical levels for medical device companies. For additional detail on customer concentration risk, see the footnotes to our audited consolidated financial statements for the years ended December 31, 2025, and 2024, included elsewhere in this Registration Statement.

**Reimbursement Strategy**

***European Reimbursement***

In Europe, Imricor's products fit within existing procedural coding and reimbursement frameworks:

● **Procedural Codes**: Existing Diagnosis Related Group ("DRG") codes and procedural codes accommodate cardiac ablation procedures regardless of imaging guidance modality

● **Reimbursement Coverage**: Hospitals are reimbursed for cardiac ablation procedures using existing codes; no need for new codes or special reimbursement approval

● **Payer Discussions**: Discussion with national payers and healthcare systems regarding specific reimbursement rates and coverage policies

***United States Reimbursement***

In the United States, Imricor expects its products to fit into existing procedural coding and reimbursement:

● **Current Procedural Terminology (** "**CPT** "**) Codes**: Existing CPT codes for Type I atrial flutter ablation and other EP procedures are anticipated to be applicable

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● **Centers for Medicare & Medicaid Services (** "**CMS** "**) Reimbursement**: Medicare reimbursement through existing procedural codes (not requiring establishment of new codes)

● **Private Payer Coverage**: Private insurers typically follow Medicare/CMS coding and reimbursement determinations

***Middle East Reimbursement***

In the Middle East, reimbursement and funding mechanisms vary by country but we expect to fit into existing reimbursement structures in our current target markets of Saudi Arabia and Qatar.

In Qatar, public hospitals typically operate under annual budgets, and costs for procedures using our products are paid directly from these budgets as part of overall hospital operating expenses. In Saudi Arabia, we expect that products will be purchased centrally through the National Unified Procurement Company ("NUPCO"), which manages government procurement of pharmaceuticals, medical supplies, and medical devices for public healthcare providers. Following receipt of required regulatory clearances in Saudi Arabia, we intend to apply for NUPCO listing and pricing to enable hospital purchasing of our products in that market.

***Reimbursement Advantages***

Our products fit within existing codes, which provides several advantages. There is no need to establish new procedural codes, which can delay reimbursement and market adoption. Our products have pricing parity with alternative ablation technologies, avoiding price disadvantage.

***Potential Reimbursement Challenges***

Reimbursement is complicated, and our products may face certain reimbursement challenges. For example, hospitals may face increased costs if MRI scanner time or facility utilization increases compared to fluoroscopy-based procedures. Some payers may require health economic justification for adoption despite code fit. Additionally, international reimbursement environments vary significantly by country.

**Manufacturing and Supply Chain**

***Manufacturing Operations***

Imricor's manufacturing operations are located in Burnsville, Minnesota, where we maintain a facility dedicated to the production of our MRI-compatible devices. The site is equipped for scalable manufacturing of both capital equipment and single-use consumables, including the Vision-MR and NavTrac-MR product families and the Advantage-MR and NorthStar platforms.

Our production strategy is founded on:

● **Quality control:** Utilizing ISO 13485:2016-certified systems to ensure product reliability, patient safety, and regulatory compliance across domestic and international markets.

● **Process validation:** Rigorous process validation and ongoing monitoring to maintain high manufacturing standards and efficient ramp-up during periods of demand growth.

● **Workforce expertise:** Cross-trained operators, ongoing employee training, and process documentation to underpin consistent quality.

Imricor currently has sufficient installed manufacturing capacity to meet near-term demand projections and to support initial U.S. commercial launch upon FDA approval. We continue to evaluate scaling options in anticipation of future FDA approval and revenue growth in other markets, but no facility expansion or off-site contract manufacturing of consumable devices is currently planned.

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***Supply Chain and Sourcing***

Our key manufacturing inputs include specialized medical-grade polymers, electronics, and MRI-compatible components not broadly available from standard medical supply catalogs, which leads us to be reliant upon multiple third-party suppliers for these components, sub-assemblies, and materials. The majority of these items are sourced domestically, with a limited number of specific parts obtained overseas.

We require our suppliers to complete a qualification process embedded within our Quality Management System to ensure compliance with our quality specifications. While continued supplier diligence and dual sourcing (where practical) are ongoing priorities, we currently source some components, subassemblies, and materials from single source suppliers. Many of the components or sub-assemblies in our products are custom built to our specifications but use standard materials that can be provided by multiple suppliers. However, due to the manufacturing requirements of the FDA and other regulatory authorities, we may not be able to quickly establish replacement or additional sources for certain components, sub-assemblies, or materials if we experience an unexpected interruption in supply. We are not dependent on any single supplier for a substantial portion of our raw materials.

**Competition and Market Position**

Imricor competes in the global cardiac ablation market, which is dominated by well-capitalized companies offering X-ray fluoroscopy-guided ablation solutions and, increasingly, by innovators commercializing emerging PFA technology.

***Major Competitors***

Our major competitors include Abbott Laboratories, Boston Scientific Corp., Johnson & Johnson, and Medtronic, Inc. All of these competitors' systems rely on X-ray fluoroscopy (and/or ultrasound) for navigation. PFA is a rapidly growing, but still emerging, ablation modality shown in recent studies to be as effective as existing thermal ablation offerings, particularly for atrial fibrillation.

***Imricor***'***s Market Position and Differentiation***

Imricor is the only company with commercial, regulatory-cleared MRI-compatible ablation systems enabling periprocedural soft-tissue imaging, lesion visualization, and entirely radiation-free procedures. In clinical studies, this has led to significantly shorter procedure times for the treatment of typical atrial flutter.

***Pulsed Field Ablation and MRI Guidance***

Imricor sees MRI and PFA as complementary, rather than competitive. As PFA adoption increases for atrial fibrillation and other arrhythmias, we believe MRI's benefits for tissue visualization and acute lesion assessment will remain relevant regardless of energy modality. Accordingly, Imricor is investing in early-stage R&D aimed at "MRI-guided PFA," with the goal that MRI imaging improves safety, precision, and outcomes for all ablation technologies.

***Strategic Partnerships and Ecosystem Development***

Recognizing that successful MRI-guided cardiac electrophysiology procedures require a complete ecosystem of MRI-compatible equipment beyond our core ablation products, Imricor has cultivated strategic partnerships with leading medical technology companies specializing in MRI systems and equipment, including MiRTLE Medical, NordicNeuroLab, Optoacoustics, livetec Ingenieurbuero GmbH, and MIPM GmbH. These partnerships allow us to deliver integrated iCMR lab solutions and enable hospitals to establish turnkey iCMR labs capable of performing complete cardiac electrophysiology procedures under MRI guidance, accelerating adoption, and reducing implementation barriers.

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***MRI Vendor Relationships***

Imricor's iCMR platform is designed to operate within MRI environments manufactured by three of the world's largest MRI vendors: Siemens Healthineers, Philips, and GE Healthcare. Our strategy focuses on ensuring technical compatibility, workflow integration, and coordinated site enablement to support hospitals adopting MRI-guided cardiac ablation programs. These vendor relationships provide critical access to the installed base of approximately 50,000 clinical MRI systems worldwide, eliminating the need for hospitals to purchase proprietary imaging equipment and enabling adoption at any site with a suitable MRI scanner and EP lab proximity.

***Barriers to Entry***

Barriers to enter our line of business include technical R&D complexity, intellectual property protection, and clinical trial site activation hurdles. Imricor's position as the pioneer of MRI-guided ablation, validated through completed CE Mark, pivotal multicenter trials, and real-world evidence, creates a deep moat and first-mover status for recruiting and retaining leading electrophysiologists and sites.

**Research and Development**

Imricor's R&D philosophy is centered on continuous product improvement, the extension of MRI-guided ablation beyond typical atrial flutter to more complex arrhythmias, and technological leadership in image-guided therapy. Our current R&D pipeline includes next-generation RF ablation catheters, mapping software, advanced diagnostic catheters, and initial PFA research for the iCMR environment. We additionally offer clinical trial support, field clinical engineers, field clinical specialists, and data scientists embedded at trial sites for rapid protocol feedback, and support investigator-led research and non-pivotal studies to broaden the evidence base for MRI-guided cardiac interventions. Our R&D team consists of 54 employees as of February 28, 2026, representing the majority of our total staff. All R&D and manufacturing activities are conducted at our Burnsville, Minnesota, headquarters. Our Dutch subsidiary, Imricor B.V., supports European research coordination.

**Human Capital**

As of February 28, 2026, we employed 89 full-time staff: 54 in R&D, 16 in sales and marketing, 11 in manufacturing, and 8 in administrative roles. As of February 28, 2026, we had 79 employees in the U.S., 9 in Europe, and 1 in Australia. We are not party to any labor union contracts, and none of our employees are covered by collective bargaining agreements.

**Corporate Structure and Available Information**

Imricor Medical Systems, Inc. is a Delaware corporation, with principal operations in Burnsville, Minnesota and a subsidiary, Imricor B.V., in the Netherlands. The Company is listed on the Australian Securities Exchange (ASX: IMR). Following effectiveness of this Registration Statement, Imricor will file reports with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K.

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| **Item 1A.** | **Risk Factors.**  |

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**Summary of Risk Factors** 

Our business and operations are subject to a number of risks, which you should be aware of prior to deciding to invest in our common stock. Listed below is a summary of these risks, which are discussed more fully immediately following this summary.

***Risks related to Our Business and the Development, Manufacturing, and Commercialization of our Products***

&nbsp;&nbsp;&nbsp;&nbsp;● We may not be able to pass the regulatory hurdles and gain the necessary approvals and clearances to sell our key products.

&nbsp;&nbsp;&nbsp;&nbsp;● Hospitals and clinics may not adopt MRI-guided technology for cardiac catheter ablation procedures.

&nbsp;&nbsp;&nbsp;&nbsp;● New or competing technologies or products could emerge.

&nbsp;&nbsp;&nbsp;&nbsp;● If early commercialization efforts are not effectively executed, our ability to achieve profitability, and our overall financial condition, may be materially and adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;● We have limited sales and marketing resources.

&nbsp;&nbsp;&nbsp;&nbsp;● We rely on MRI manufacturers for integration of our products with their equipment.

&nbsp;&nbsp;&nbsp;&nbsp;● We may not be able to effectively manage our growth.

&nbsp;&nbsp;&nbsp;&nbsp;● We rely on key suppliers for product components.

&nbsp;&nbsp;&nbsp;&nbsp;● We currently use a single location to perform our manufacturing activities and are highly dependent on the continued availability of our facilities.

&nbsp;&nbsp;&nbsp;&nbsp;● We have limited management resources and must attract and retain skilled staff.

&nbsp;&nbsp;&nbsp;&nbsp;● Our customers may not be able to achieve adequate reimbursement from third-party payers for using our products.

&nbsp;&nbsp;&nbsp;&nbsp;● We may not be able to achieve or maintain satisfactory pricing and margins for our products.

&nbsp;&nbsp;&nbsp;&nbsp;● Adoption of our products depends upon appropriate physician training, and inadequate training may lead to negative patient outcomes, affect adoption of our products, and adversely affect our business.

&nbsp;&nbsp;&nbsp;&nbsp;● We may not realize benefits from continued research and development costs.

***Risks Related to Our Industry***

&nbsp;&nbsp;&nbsp;&nbsp;● Clinical trials may be delayed, suspended, or terminated for many reasons, which will increase our expenses and delay the time it takes to develop our current or new products or seek new indications.

&nbsp;&nbsp;&nbsp;&nbsp;● Hospitals and other healthcare organizations can face budget constraints which at times may impact their ability to fund new capital projects.

&nbsp;&nbsp;&nbsp;&nbsp;● We face risks related to product liability claims, which could exceed the limits of available insurance coverage.

&nbsp;&nbsp;&nbsp;&nbsp;● Security breaches, loss of data, and other disruptions could compromise sensitive information related to our business or our customers' patients or prevent us from accessing critical information and expose us to liability, which could adversely affect our business and our reputation.

&nbsp;&nbsp;&nbsp;&nbsp;● We may become involved in securities litigation, which is expensive and could divert management's attention and harm our business.

***Risks Related to our Financial Position and Need for Additional Capital***

&nbsp;&nbsp;&nbsp;&nbsp;● In order to fund our continued operations and strategic objectives, we may seek to raise additional capital, which may not be available on acceptable terms, or at all.

&nbsp;&nbsp;&nbsp;&nbsp;● Our business, financial condition, and results of operations could be materially and adversely affected by fluctuations in foreign currency exchange rates.

&nbsp;&nbsp;&nbsp;&nbsp;● Our quarterly and annual results may fluctuate significantly due to various factors, many of which are outside our control, and period-to-period comparisons may not be indicative of future performance.

&nbsp;&nbsp;&nbsp;&nbsp;● We are an emerging growth company and a smaller reporting company and the reduced reporting requirements applicable to smaller reporting companies may make our common stock less attractive to investors and may make it more difficult to compare our performance with other companies.

&nbsp;&nbsp;&nbsp;&nbsp;● Our ability to utilize our net operating loss carryforwards may be limited.

&nbsp;&nbsp;&nbsp;&nbsp;● Uncertainties in the interpretation and application of existing, new, and proposed tax laws and regulations could materially affect our tax obligations and effective tax rate.

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***Risks Related to Government Regulation***

&nbsp;&nbsp;&nbsp;&nbsp;● Regulatory registrations or market clearances may be withdrawn or regulatory requirements may change.

&nbsp;&nbsp;&nbsp;&nbsp;● The manufacturing facilities for our products must comply with stringent regulatory requirements.

&nbsp;&nbsp;&nbsp;&nbsp;● Defects or failures associated with our products could lead to recalls, safety alerts or litigation, as well as significant costs and negative publicity.

&nbsp;&nbsp;&nbsp;&nbsp;● The use, misuse or off-label use of our products may harm our image in the marketplace or result in injuries that lead to product liability suits, which could be costly to our business or result in FDA sanctions if we are deemed to have engaged in improper promotion of our products.

&nbsp;&nbsp;&nbsp;&nbsp;● If any of our products cause or contribute to a death or a serious injury or malfunction in certain ways, we will be required to report under applicable medical device reporting regulations, which can result in voluntary corrective actions or agency enforcement actions.

&nbsp;&nbsp;&nbsp;&nbsp;● Healthcare reform initiatives, policy changes, and other administrative and legislative proposals may adversely affect our business, financial condition, results of operations, and cash flows in our key markets.

***Risks Related to our Intellectual Property***

&nbsp;&nbsp;&nbsp;&nbsp;● We are dependent on the protection and enforcement of our intellectual property rights.

&nbsp;&nbsp;&nbsp;&nbsp;● We may be subject to future third-party intellectual property rights disputes.

&nbsp;&nbsp;&nbsp;&nbsp;● If we are unable to protect the confidentiality of our other proprietary information, our business and competitive position may be harmed.

&nbsp;&nbsp;&nbsp;&nbsp;● If our trademarks and trade names are not adequately protected, then we may not be able to build name recognition in our markets, and our business may be adversely affected.

&nbsp;&nbsp;&nbsp;&nbsp;● We may become a party to intellectual property litigation or administrative proceedings that could be costly and could interfere with our ability to sell and market our products.

***Risks Related to our CDIs and Common Stock***

&nbsp;&nbsp;&nbsp;&nbsp;● Our common stock may never be listed on a major U.S. stock exchange which could materially limit liquidity and increase volatility for investors.

&nbsp;&nbsp;&nbsp;&nbsp;● Investors may have difficulty in reselling their CDIs or shares of common stock due to the lack of an established trading market in the U.S. or potentially restrictive state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;● The issuance of additional securities in connection with financings, investments, our equity incentive plans, or otherwise will dilute all other stockholders and may adversely affect the value and rights associated with our common stock.

&nbsp;&nbsp;&nbsp;&nbsp;● The market price of our CDIs and common stock may be volatile, which could cause the value of our common stock to decline and limit an investor's ability to realize any return on investment.

&nbsp;&nbsp;&nbsp;&nbsp;● If securities and industry analysts do not publish, regularly update, or publish inaccurate or unfavorable research about our business, the trading price and trading volume of the common stock could decline.

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**Risks related to Our Business and the Development, Manufacturing, and Commercialization of our Products**

***We may not be able to pass the regulatory hurdles and gain the necessary approvals and clearances to sell our key products.***

We will, subject to regulatory clearances, seek to sell our key products in the European Union, the Middle East, the U.S., and other jurisdictions. We are not assured of receiving future regulatory clearances and approvals for other indications or in other jurisdictions and cannot predict with certainty the timelines for such clearances and approvals, or other requirements that may be imposed by regulatory authorities (e.g. further clinical trials or other requirements to prove the safety and effectiveness of our products). In addition, future changes or updates to our products which affect their safety or efficacy may require new regulatory clearance or approval in some jurisdictions before we may sell the revised product. Any barriers or delays to obtaining future regulatory clearances would limit the size of the market opportunity for our ablation system.

***Hospitals and clinics may not adopt MRI-guided technology for cardiac catheter ablation procedures.***

Our business model depends on hospitals and clinics with ablation centers in markets where we obtain the required regulatory approvals establishing an iCMR lab and adopting our MRI-compatible technology for cardiac catheter ablation procedures. The time to establish an iCMR lab can also vary significantly from months to years depending on the individual hospital and clinic and its internal processes. If MRI-guided technology for cardiac catheter ablation procedures is not increasingly adopted or favored by hospitals and clinics, along with physicians, our ability to achieve our growth strategy and generate revenue will be significantly impaired.

***New or competing technologies or products could emerge.***

We expect to generate the vast majority of future revenue from the sale of products used for MRI-guided cardiac catheter ablation procedures. The medical device industry is competitive, subject to rapid change and significantly affected by new product introductions. Although we believe that there are currently no products or technologies that are commercially comparable to our MRI-compatible cardiac catheter ablation products, there are a number of other products and devices on the market which are not traditionally MRI-compatible, but which are commonly used to perform conventional cardiac catheter ablation procedures. To this end, we compete with larger companies who manufacture and sell ablation and diagnostic electrophysiology products, including Abbott Laboratories, Boston Scientific Corp., Johnson & Johnson, and Medtronic, Inc. If competitors develop new products (which could include devices or drugs) or technologies that offer better combinations of price and performance than we can offer for the treatment of arrhythmia, our products or future products may become obsolete or not competitive, which would have a significant negative effect on our business and financial position.

***If early commercialization efforts are not effectively executed, our ability to achieve profitability, and our overall financial condition, may be materially and adversely affected.***

Historically, the Company generated revenue from licensing some of its intellectual property for use in implantable devices and performing contract research but expects to generate most of its future revenue from the sale of the MRI-compatible products it has developed for use in cardiac catheter ablation procedures (comprising single-use consumables and capital goods). We are currently in the early stages of commercializing our key MRI-compatible products in the European Union, the Kingdom of Saudi Arabia, and Qatar. We have incurred net losses since inception, have never been profitable, and there is no assurance that we will achieve or sustain profitability or positive cash flow in the future. We face the risks typically encountered by companies early in their commercialization, particularly those developing and selling medical devices.

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These risks include our ability to:

● transition into a commercialization-stage company, and implement and execute our business strategy;

● increase awareness of our brand and market acceptance of our products;

● obtain future regulatory registrations and market clearances;

● manage expanding operations; and

● respond effectively to competitive pressures and developments

As we expand our commercialization activities, we expect to continue incurring substantial sales and marketing, research and development, regulatory, and general and administrative expenses. We also expect to incur costs associated with expanding our customer relationships, obtaining regulatory clearances or approvals for our planned and future products, conducting clinical trials on our existing and planned or future products, and developing new products or adding new features to our existing products. In addition, as a company subject to SEC reporting requirements, we will incur incremental legal, accounting, compliance, and other expenses that we have not previously incurred. Accordingly, we cannot assure you that we will achieve or sustain profitability. If we are unable to achieve and sustain profitability, our ability to finance our business and accomplish our strategic objectives would be impaired, which could have a material adverse effect on our business, financial condition, and results of operations.

***We have limited sales and marketing resources.***

We currently have limited sales and marketing resources and will need to, among other things, expand our sales team. We will sell all of our products to hospitals and clinics either directly or through distributors and will therefore need to commit increased resources to product sales and marketing to execute our current growth strategy. There is a risk that we will be unable to develop sufficient sales and marketing capabilities to effectively commercialize our products and maintain a competitive position in our market.

***We rely on MRI manufacturers for integration of our products with their equipment.***

Our products must first be integrated with MRI manufacturer systems before hospitals can proceed with iCMR lab installation. We collaborate with GE Healthcare, Philips, and Siemens, three global MRI vendors who provide MRI systems for iCMR labs, to integrate our products with their systems. The pace and prioritization of integration projects are largely dictated by MRI manufacturers, which may lead to delays or suboptimal compatibility if project timelines are extended or shifted. If MRI manufacturers focus on their own proprietary technologies over the integration of our products, we may be required to invest more heavily to maintain compatibility, increasing development costs and project risks.

***We may not be able to effectively manage our growth.***

Because we have only limited experience in manufacturing our products in commercial quantities, we may encounter production delays or shortfalls. Such production delays or shortfalls may be caused by many factors, including the following:

● key components of our products are provided by a single supplier or limited number of suppliers, and we do not maintain large inventory levels of these components;

● if we experience a shortage or quality issues in any of these components, we will need to identify and qualify new supply sources, which could increase our expenses and result in manufacturing delays; and

● our ability to attract and retain qualified employees for our operations in order to significantly increase our manufacturing output.

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If we are unable to keep up with demand for our products, our growth could be impaired, and market acceptance for our products could be harmed and physicians may instead elect to use our competitors' products. Our inability to successfully manufacture our products in sufficient quantities would materially harm our business. We expect that our current manufacturing capabilities will be sufficient to support our projected growth profile through the end of 2027. If we gain significant market share over and above our current short-term expectations and, in any case, from 2028 onwards, we will need to expand our manufacturing capacity, including additional facilities, and invest in systems and processes to support the development of the business. The failure to address projected growth in a timely, robust, and efficient manner may negatively impact our financial performance.

***We rely on key suppliers for product components.***

Our products include components that are manufactured and supplied by third parties. The products are then assembled, validated, and tested at our headquarters in Burnsville, Minnesota. There are inherent risks in relying on third party suppliers for our product components, especially since any change to the manufacturing process of an approved medical device requires significant documentation and, in many cases, supplemental testing. Certain components and products that meet our requirements are available only from a single supplier or a limited number of suppliers. This concentration creates potential for disruptions, which may include issues with availability of product components and pricing. Our suppliers may decide, or be required, for reasons beyond our control, to cease supplying such product components to us or to raise their prices. Shortages of product components, quality control problems, production capacity constraints, or delays by suppliers could negatively affect our ability to meet our production goals. A disruption at a key supplier could cause a substantial delay in the availability of our products, leading to a potential loss of sales.

***We currently use a single location to perform our manufacturing activities and are highly dependent on the continued availability of our facilities.***

We perform all of our manufacturing activities at our headquarters in Burnsville, Minnesota. Should operations at the facility be disrupted or production halted for any reason (e.g. due to labor strikes, extreme weather, issues arising from FDA or other regulatory inspections, or other events outside our control), we may incur significant costs and disruptions that could reduce our revenues and harm our business, reputation, and financial results. While alternative arrangements could be made to transfer the manufacturing process to a different facility, this would take some time and may involve other risks. The regulatory process for approval of facilities is time-consuming, and our ability to rebuild facilities would take a considerable amount of time and expense and cause a significant disruption in service to our customers. If such disruption were to occur, it would adversely affect our ability to sell our products and customers might instead purchase ablation products from our competitors. There may also be an ongoing sales impact in the form of a reduction of goodwill as a result of us being unable to supply hospitals, clinics, and physicians with the product in a timely manner.

***We have limited management resources and must attract and retain skilled staff.***

Our long-term growth and performance are dependent on attracting and retaining highly skilled staff. Despite having structured incentive programs, there is a risk that we will be unable to attract and retain the necessary staff to pursue our business model. In particular, if Mr. Steve Wedan, our CEO and a founder, were to leave Imricor, we would lose significant technical and business expertise, and we may not be able to find a suitable replacement. This would affect how efficiently we operate our business and our future financial performance could be impacted.

In addition, our research and development programs, clinical operations, and sales and marketing efforts depend on our ability to attract and retain highly skilled engineers, sales staff, and other professionals. Competition for skilled personnel in our market is intense, and we have from time to time experienced, and we expect to continue to experience, difficulty in hiring and retaining employees with appropriate qualifications on acceptable terms, or at all. Many of the companies with which we compete for experienced personnel have greater resources than we do, and any of our employees may terminate their employment with us at any time. In addition, job candidates and existing employees often consider the value of the stock awards they receive in connection with their employment. If the perceived benefits of our stock awards decline, it may harm our ability to recruit and retain highly skilled employees. If we fail to attract new personnel or fail to retain and motivate our current personnel, our business and future growth prospects will be harmed.

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***Our customers may not be able to achieve adequate reimbursement from third-party payers for using our products.***

We expect our products will generally be purchased by hospitals and clinics who will then seek reimbursement from various public and private third-party payers once those products are used to provide health care services to patients. Existing reimbursement codes apply to the sale of the Vision-MR Ablation Catheter and Vision-MR Diagnostic Catheter in the European Union, and we expect our products will qualify for reimbursement codes in the U.S. There is no assurance, however, that third-party payers will provide adequate reimbursement for hospitals and physicians to consider our products cost-effective for patients requiring ablation procedures. In addition, the overall amount of reimbursement available for ablation procedures could decrease in the future. If third-party payer reimbursement to providers for procedures involving our products is eliminated or reduced, some of our target customers may be unwilling to purchase our products and may choose to instead purchase less expensive alternatives from our competitors. In addition, third-party payers for hospital services and hospital outpatient services, including Medicare, Medicaid, and private healthcare insurers, typically revise their coverage and payment policies, methodologies, and amounts on an annual basis, which can result in noncoverage, stricter standards for reimbursement of hospital charges for certain medical procedures, or the elimination of or reduction in reimbursement. Further, Medicare, Medicaid, and private healthcare insurer cutbacks could create downward price pressure on our products. Healthcare reform legislation at federal and state levels in the U.S. could result in changes in coverage of and reimbursement for our products. Finally, our revenues also depend upon timely reimbursement data input from our independent agents. Failure by hospitals and other users of our products to obtain sufficient reimbursement could cause our business to suffer.

***We may not be able to achieve or maintain satisfactory pricing and margins for our products.***

Manufacturers of medical devices have a history of price competition, and we can give no assurance that we will be able to achieve satisfactory prices for our products or maintain prices at the levels we have historically achieved. Any decline in the amount that payers reimburse our customers for procedures involving the use of our products could make it difficult for customers to continue using, or to adopt, our products and could create additional pricing pressure for us. If we are forced to lower the price we charge for our products, our revenue and gross margins will decrease, which will adversely affect our ability to invest in and grow our business. If we are unable to maintain our prices, or if our costs increase and we are unable to offset such an increase with an increase in our prices, our margins could erode. We will continue to be subject to significant pricing pressure, which could harm our business, financial condition, and results of operations.

***Adoption of our products depends upon appropriate physician training, and inadequate training may lead to negative patient outcomes, affect adoption of our products, and adversely affect our business.***

The success of our MRI-compatible cardiac ablation products depends in part on hospitals and physicians adhering to appropriate patient selection criteria and following the proper techniques provided in our training and support programs. Physicians may rely on previous medical training or experience, and we cannot guarantee that all such practitioners will have the necessary skills or complete the required training to effectively utilize our Vision-MR Ablation Catheter, NorthStar Mapping System, and related devices. If physicians use our products in a manner inconsistent with their labeled indications, in combination with components not compatible with our devices, or without adequate training, patient outcomes may diverge from those observed in clinical trials or published studies. This could negatively impact perceptions of patient safety and therapeutic benefit, limit hospital adoption of our technologies, and materially affect our business, financial condition, and results of operations.

***We may not realize benefits from continued research and development costs.***

Developing medical devices and related technologies is expensive and the investment in the development of these product offerings often involves an extended period of time to achieve a return on investment. An important element of our business strategy is to continue to make investments in innovation and related product opportunities. We believe that we must continue to dedicate resources to our innovation efforts to develop product offerings in order to maintain our competitive position and expand the total addressable market opportunity. We may not, however, receive significant revenues from these investments for several years, or may not realize such benefits at all.

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***We may not be able to successfully expand applications of our products to treat additional cardiac arrhythmias, enhance the capabilities of our existing products to keep pace with rapidly changing technology and customer requirements, develop new related products, or successfully commercialize such expanded applications or new related products, any of which could have a material adverse effect on our business, financial condition, and results of operations.***

Our success depends on our ability to develop and commercialize expanded applications of our products for the treatment of additional cardiac arrhythmias and to develop new related products, while improving the performance and cost-effectiveness of our existing products, in each case in ways that address current and anticipated customer requirements. We intend to develop and commercialize such expanded applications and related products through our research and development program and, if necessary, by licensing or acquiring complementary components and technologies from third parties. Such success is dependent upon several factors, including functionality, competitive pricing, ease of use, the safety and efficacy of our products, and our ability to identify, select, and acquire the rights to products and technologies on terms that are acceptable to us.

Our industry is characterized by rapid technological change and innovation. New technologies, techniques or products may emerge that might offer better combinations of price and performance or better address customer requirements as compared to our current or future products. Competitors who have greater financial, marketing and sales resources than we do may be able to respond more quickly and effectively than we can to new or changing opportunities, technologies, standards, or customer requirements. Any expanded application or new related product we identify for internal development may require additional development efforts prior to commercial sale. Due to the significant lead time and complexity involved in bringing an expanded application or new related product to the market, we are required to make a number of assumptions and estimates regarding the commercial feasibility of such expansion or new product. These assumptions and estimates may prove incorrect, resulting in our introduction of an expanded application or new product that is not competitive at the time of launch. We anticipate that we will face increased competition in the future as existing companies and competitors develop new or improved products and as new companies enter the market with new technologies and sales mechanisms which we may be unable to adopt or offer for sale. Our ability to mitigate downward pressure on the prices of the products that we offer for sale will be dependent on our ability to maintain and/or increase the value we offer to suppliers, vendors, strategic partners, and consumers. We cannot assure you that any expanded applications or new related products that we develop or offer for sale will be manufactured or produced economically, successfully commercialized, or widely accepted in the marketplace. The expenses or losses associated with unsuccessful development or launch activities, or a lack of market acceptance of expanded applications or new related products, could adversely affect our business, financial condition, and results of operation.

Our ability to attract new customers and increase revenue from existing customers depends in large part on our ability to enhance and improve our own products, maintain relationships with other vendors and suppliers, and to develop expanded applications or new related products. Any expanded application or new related product that we develop or offer for sale may not be introduced in a timely or cost-effective manner, may contain defects, or may not achieve the marketplace acceptance necessary to generate significant revenue. If we are unable to successfully expand applications of our products to treat additional cardiac arrhythmias, enhance our existing product capabilities to meet customer requirements, develop new related products, or otherwise gain market acceptance, our business, financial condition, and results of operation would be harmed.

***A material amount of our revenues and accounts receivable are concentrated in a small number of customers. If we do not broaden our customer base, our revenues may fluctuate substantially, and our results of operations and financial condition may be harmed.***

We recognized an aggregate of approximately 79% of our revenue from 2 customers for the year ended December 31, 2025 and approximately 67% of our revenue from 4 customers for the year ended December 31, 2024. Accordingly, until we grow our customer base, there are a limited number of customers from whom we generate a significant proportion of our revenue. Any negative changes in demand from these customers or in our broader strategic relationship with these customers would adversely affect our business, operating results, financial condition, and future prospects. We anticipate that we will continue to derive a significant portion of our revenue from a small number of customers for the foreseeable future.

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***We rely on distributors to generate revenues in certain parts of the world, subjecting us to risks associated with those relationships.***

We hold agreements with distributors to facilitate sales in certain parts of the world, and as a result, do not have as much control over distributor performance as we do with our own sales team. Distributors may struggle with operational inefficiencies, logistic challenges, and inventory management, affecting timely delivery and sales volume. External events such as geopolitical tensions, regulatory changes, or raw material shortages can disrupt distributor networks and threaten market access. Additionally, if we fail to maintain positive relationships with our distributors or fail to ensure that our distributors adhere to our sales processes, compliance, and other priorities, this could have an adverse effect on our operations. Changes in the key personnel or management within our distributors could adversely affect our business if such changes are not managed effectively. Further, distributors may decide to terminate their relationship with us. A loss of a significant number of our distributors could have a material adverse effect on our business and results of operations.

In addition, we rely on our distributors to comply with applicable laws and regulations in connection with the distribution of our products, including local anti-corruption and anti-bribery laws. Any failure by our distributors to comply with such laws and regulations could result in liability, penalties, or other sanctions, which could negatively affect our business, financial condition, and results of operation.

***Service, maintenance, and support obligations under service agreements for iCMR sites include ongoing responsibilities that may pose operational and financial risks to the company.***

To the extent we enter into service, maintenance, or support agreements for installed iCMR sites, we may be required to provide ongoing software updates to maintain compatibility with new MRI equipment versions, ensure safety, and address any technical issues that arise post-installation. Ongoing support includes training clinical staff on new indications and future product iterations, requiring sustained educational efforts and resource allocation over the lifespan of the product at the site.

Maintenance and support entail technical and clinical coordination to respond to emerging operational challenges unique to MRI environments, including equipment safety, compatibility, and procedural workflow optimization.

The obligation to provide long-term maintenance and continuous training may increase operational expenses and resource commitments over time, which could impact margins if not managed efficiently. Failure to provide adequate service and support could result in equipment downtime, reduced customer satisfaction, and potential reputational harm, affecting client retention and future sales of equipment and consumable products.

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**Risks Related to Our Industry**

***Clinical trials may be delayed, suspended, or terminated for many reasons, which will increase our expenses and delay the time it takes to develop our current or new products or seek new indications.***

We may experience delays in our ongoing or future preclinical studies and clinical trials, or such studies may not commence on time, may need to be redesigned, may fail to enroll sufficient numbers of patients, or may not be completed on schedule, if at all. The commencement and completion of our clinical trials for both current and future products or indications may be delayed, suspended, or terminated as a result of many factors, including but not limited to:

● regulatory authorities such as the FDA, Therapeutic Goods Administration ("TGA"), or relevant bodies in the European Union or Middle East may disagree with the design, protocol, or implementation of our clinical trials, or may change requirements, policies, or guidelines mid-study, necessitating protocol amendments or additional data;

● regulators or institutional review boards ("IRBs") or Ethics Committees may delay or refuse to authorize us to commence a clinical trial at prospective sites, or may suspend or terminate an ongoing trial due to noncompliance, perceived conflicts of interest, safety concerns, or other reasons;

● delays or inability to reach agreement with contract research organizations ("CROs") or clinical trial sites, whose terms may vary widely and require lengthy contract negotiations;

● delays in patient enrollment, or inability to enroll a sufficient and representative number of patients in our studies, or patient withdrawal and loss to follow-up, reducing the statistical power and integrity of trial results;

● negative or inconclusive preclinical or clinical trial results may require us to conduct additional studies or abandon lines of development that we otherwise expect to be promising, adversely impacting our product pipeline and prospects;

● the occurrence of serious patient adverse events or deaths during clinical trials—even if unrelated to our devices—may result in clinical holds, additional oversight, and reputational harm;

● device malfunctions, manufacturing failures, or product quality deficiencies, particularly for novel or first-of-kind technologies used in MRI environments, could prevent initiation or continuation of clinical studies and may prompt regulatory investigations.

● data integrity concerns, including protocol deviations, data entry errors, lost data, or inadequate monitoring, that require data exclusion, study repetition, or additional trials;

● delays relating to adding new clinical trial sites or competition from other active trials for similar patient populations;

● exceeding budgeted costs for clinical trials or difficulty in accurately predicting and controlling trial costs, potentially resulting in the need for additional capital; and

● supply chain constraints or the inability to manufacture and distribute sufficient quantities of our products for use in clinical trials.

Clinical trials for our products may also be suspended or terminated by us, IRBs, Ethics Committees, data safety monitoring boards, or regulatory authorities due to noncompliance with regulatory requirements, safety concerns, results not demonstrating safety or effectiveness, or other unforeseen issues. Additionally, delays or adverse findings relating to financial relationships with investigators, such as perceived or actual conflicts of interest, could impact the interpretation and acceptance of trial data by regulatory agencies.

The impact of these risks could include material increases in our expenses, lengthened product development timelines, reduced competitive opportunity, delays in securing regulatory clearance or expanded indications, or even the inability to commercialize one or more products. Any such developments could harm our business, financial condition, and operating results in a manner that is significant and not readily predictable.

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***Hospitals and other healthcare organizations can face budget constraints which at times may impact their ability to fund new capital projects.***

Our ability to generate revenue will largely depend on how effectively we can market and sell our MRI-compatible cardiac catheter ablation products to the healthcare industry. Hospitals and healthcare organizations are constantly facing significant budget constraints, the competition for limited capital budgets is intense and the budget allocation process and approvals for spending on medical devices is complex and time consuming. As a result, marketing and sales to hospitals and other healthcare organizations requires significant time and expense, is intensely competitive, and the revenue cycle for medical devices can be lengthy, unpredictable, and results highly variable. These factors may cause our operating results to fluctuate or adversely affect our ability to achieve our forecasted growth strategy.

***We face risks related to product liability claims, which could exceed the limits of available insurance coverage.***

The medical device industry is subject to substantial litigation, and we face an inherent risk of exposure to product liability claims in the event that the use of our products results or is alleged to have resulted in adverse effects to a patient. We may incur material liabilities relating to product liability claims, and although we maintain product liability insurance, we cannot assure you that the coverage limits of our insurance policies will be adequate, or that insurance will be available to us on acceptable terms, if at all. A product liability or other claim with respect to uninsured liabilities or in excess of our insurance coverage would materially impact our business, financial condition, and operating results.

We also could experience a material design or manufacturing failure in our products, a quality system failure, other safety issues, or heightened regulatory scrutiny that would warrant a recall of some of our products. Product liability lawsuits and claims, safety alerts, and product recalls, regardless of their ultimate outcome, could result in decreased demand for our products, injury to our reputation, significant litigation and other costs, substantial monetary awards to or costly settlements with patients, product recalls, loss of revenue, increased regulatory scrutiny, and the inability to commercialize new products or product candidates, and otherwise have a material adverse effect on our business, our reputation, and our ability to attract and retain customers.

***Security breaches, loss of data, and other disruptions could compromise sensitive information related to our business or our customers***' ***patients or prevent us from accessing critical information and expose us to liability, which could adversely affect our business and our reputation.***

In the ordinary course of our business, we may collect, store, or otherwise process sensitive data, including procedure-based information and protected health information, and other potentially personally identifiable information. We also store sensitive intellectual property and other proprietary business information. Although we take measures to protect sensitive data from unauthorized access or disclosure, our information technology ("IT") and infrastructure, and that of other technology partners, are vulnerable to cyber-attacks by hackers or viruses or breached due to employee error, malfeasance, or other disruptions. We rely on IT systems, networks, services, including internet sites, data hosting and processing facilities, tools, physical security systems, and other hardware, software, and technical applications and platforms, some of which are managed, hosted, provided, and/or used by third parties or their vendors, to assist in conducting our business. Our ability to monitor these third parties' information security practices is limited, and these third parties may not have adequate information security measures in place. If the third parties with whom we work experience a security incident or other interruption, we could experience adverse consequences. While we may be entitled to damages if the third parties with whom we work fail to satisfy their privacy or security-related obligations to us, any award may be insufficient to cover our damages, or we may be unable to recover such an award. In addition, supply-chain attacks have increased in frequency and severity, and we cannot guarantee that third parties' infrastructure in our supply chain or that of the third parties with whom we work have not been compromised.

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A significant breakdown, invasion, corruption, destruction, or interruption of critical information technology systems or infrastructure could negatively impact operations. We could also experience a business interruption, theft of confidential information or reputational damage from industrial espionage attacks, malware, ransomware, failures during the process of upgrading or replacing software, databases, or components thereof, power outages, damage or interruption from fires or other natural disasters, hardware failures, telecommunication failures and user errors, or other cyber-attacks or other interruptions, which may compromise our system infrastructure or lead to data leakage, either internally or at our third-party providers. We have been the target of such events in the past and expect them to continue as cybersecurity threats have been rapidly evolving in sophistication and becoming more prevalent in the industry. Although we are investing in protection and monitoring practices of our data and IT to try to reduce these risks and we monitor our systems on an ongoing basis for any current or potential threats, there can be no assurance that our efforts will prevent breakdowns or breaches of our or our third-party providers' databases or systems that could materially and adversely affect our business, financial condition, and results of operations.

Additionally, remote work has become more common and has increased risks to our information technology systems and data, as more of our employees utilize network connections, computers, and devices outside our premises or network, including working at home, while in transit, and in public locations.

Currently, we carry business interruption coverage to mitigate certain potential losses, but this insurance is limited in amount and may not be sufficient in type or amount to cover us against claims related to security breaches, cyber-attacks, and other related data and system disruptions. We cannot be certain that such potential losses will not exceed our policy limits, insurance will continue to be available to us on economically reasonable terms, or at all, or any insurer will not deny coverage as to any future claim. In addition, we may be subject to changes in our insurance policies, including premium increases or the imposition of large deductible or co-insurance requirements.

***We may become involved in securities litigation, which is expensive and could divert management***'***s attention and harm our business.***

We may be the target of securities litigation, especially following periods of market volatility. Securities litigation against us could result in substantial costs and divert our management's attention from other business concerns, which could seriously harm our business.

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**Risks Related to our Financial Position and Need for Additional Capital**

***In order to fund our continued operations and strategic objectives, we may seek to raise additional capital, which may not be available on acceptable terms, or at all.***

Our current capital reserves may not be adequate to fund our operations and execution of our strategic objectives. We intend to use our existing cash primarily to support the commercial launch of our products in the European Union, the Middle East, and the United States, as well as to advance our ongoing and planned clinical development programs in the United States, European Union, and other jurisdictions. We may decide to use the proceeds differently from our current plans or may need to obtain additional funding to continue operations (or both). Our future liquidity and capital funding requirements will depend on numerous factors including, but not limited to:

● our revenue growth;

● the expansion of our sales and distribution networks;

● our ability to raise additional funds to finance our operations;

● our research and development efforts;

● the outcome, costs, and timing of any clinical trial results for our current or future products;

● the outcome, costs, and timing of regulatory approvals for our future products;

● the emergence and effect of competing or complementary products;

● the availability and amount of reimbursement for procedures using our products;

● our ability to maintain, expand, and defend the scope of our intellectual property portfolio, including the amount and timing of any payments we may be required to make, or that we may receive, in connection with the licensing, filing, prosecution, defense, and enforcement of any patents or other intellectual property rights;

● our ability to retain our current employees and the need and ability to hire additional management and sales, scientific, and medical personnel;

● the terms and timing of any licensing or other arrangements that we have or may establish with third parties; and

● the impact of adverse worldwide economic conditions.

If we determine that additional capital is required, we, and indirectly, our stockholders and CDI holders, will bear the cost of issuing and servicing such securities. We may seek to raise funds through the issuance of equity securities, debt financing, or other strategic transactions. If we raise additional funds by issuing equity securities, the interests held by stockholders and CDI holders may be diluted. Debt financing, if available, would result in increased fixed payment obligations and may involve covenants restricting our ability to incur additional debt, limitations on our ability to acquire, sell, or license intellectual property rights, and other operating restrictions that could adversely impact our ability to conduct our business. We cannot guarantee the future availability of funds or that the funds will be available on terms that are favorable to us.

If we require additional funding and are unable to raise the funds, it could adversely impact our business. If we are unable to maintain sufficient financial resources, our business, financial condition, and results of operations will be materially and adversely affected, including potentially requiring us to delay, limit, reduce, or terminate certain research and development activities or commercialization efforts.

***Our business, financial condition, and results of operations could be materially and adversely affected by fluctuations in foreign currency exchange rates.***

Although we intend to seek regulatory approval to place our key MRI-compatible products on the market in the U.S., unless and until we obtain such regulatory approvals, we expect to derive a significant portion of our revenue in the foreseeable future from the sale of our key MRI-compatible products in the European Union and the Middle East. Revenue from products sold in the European Union will largely be denominated in Euros, while our functional and reporting currency is the U.S. dollar. Our results of operations and cash flows will be subject to fluctuations due to changes in foreign currency exchange rates, which could harm our business in the future. For example, if the value of the U.S. dollar increases relative to foreign currencies, in the absence of a corresponding change in local currency prices, our revenue could be adversely affected as we convert revenue from local currencies to U.S. dollars.

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In addition, because we conduct business in currencies other than U.S. dollars, but report our results of operations in U.S. dollars, we also face remeasurement exposure to fluctuations in currency exchange rates, which could hinder our ability to predict our future results and earnings and could impact our results of operations.

We do not currently maintain a program to hedge exposures to non-U.S. dollar currencies, and consequently, we are exposed to the risk of adverse movements in foreign currency exchange rates. In connection with any capital raising activities or offerings on the ASX where proceeds are received in Australian dollars, adverse movements in the U.S. dollar-Australian dollar exchange rate between pricing and closing may reduce the U.S. dollar amount of our net proceeds. In addition, fluctuations in foreign exchange rates may result in a discrepancy between our actual results of operations and investors' expectations of returns on securities expressed in Australian dollars. If we are unable to address these risks effectively, it could have a material adverse effect on our business, financial condition, and results of operations.

***Our quarterly and annual results may fluctuate significantly due to various factors, many of which are outside our control, and period-to-period comparisons may not be indicative of future performance.***

Our quarterly and annual results of operations, including potential future revenue, profitability or losses, and cash flow, may vary significantly in the future, and period-to-period comparisons of our operating results may not be meaningful. Accordingly, the results of any one quarter or other period should not be relied upon as an indication of future performance. Our quarterly and annual financial results may fluctuate because of a variety of factors, many of which are outside our control and, as a result, may not fully reflect the underlying performance of our business. Factors that may cause fluctuations in our quarterly and annual results include, but are not limited to:

● the level of demand for our products, which may vary significantly from period to period;

● expenditures that we may incur to acquire, develop, or commercialize additional products and technologies;

● the timing and cost of clinical trials, including obtaining regulatory approvals or clearances for planned or future products;

● the rate at which we grow our sales force and the speed at which newly hired salespeople become effective, and the cost and level of investment therein;

● the degree of competition in our industry and any change in the competitive landscape of our industry, including consolidation among our competitors or future partners;

● coverage and reimbursement policies with respect to the procedures using our products and potential future products that compete with our products;

● the timing and success or failure of clinical trials for our current or planned products or any future products we develop or competing products;

● the timing of customer orders or medical procedures, the number of available selling days in a particular period, which can be impacted by a number of factors, such as holidays or days of severe inclement weather in a particular geography, the mix of products sold, and the geographic mix of where products are sold;

● the timing and cost of, and level of investment in, research, development, regulatory approval, and commercialization activities relating to our products, which may change from time to time;

● the cost of manufacturing our products, which may vary depending on the quantity of production and the terms of our agreements with third-party suppliers and manufacturers;

● natural disasters, or outbreaks of disease or public health crises;

● the timing and nature of any future acquisitions or strategic partnerships; and

● future accounting pronouncements or changes in our accounting policies.

Given the potential for fluctuations in our quarterly and annual results, period-to-period comparisons may not be the best indication of the underlying results of our business and should only be relied upon as one factor in determining how our business is performing.

Forecasts that we may provide to the market are based on assumptions that we believe to be reasonable, but which are inherently uncertain, unpredictable, and based on certain contingencies that are outside our control. Due to this uncertainty and unpredictability, our results may fail to meet the expectations of industry or financial analysts or investors for any period. If our revenue or operating results fall below the expectations of analysts or investors or below any forecasts we may provide to the market, it may result in a decrease in the price of our common stock.

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***We are an emerging growth company and a smaller reporting company and the reduced reporting requirements applicable to smaller reporting companies may make our common stock less attractive to investors and may make it more difficult to compare our performance with other companies.***

We are an "emerging growth company," as defined in the JOBS Act. As such, we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies including, but not limited to:

● exemption from the auditor attestation requirement in the assessment of our internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;

● exemption from any requirement that may be adopted by the PCAOB regarding mandatory audit firm rotation or a supplement to the auditor's report providing additional information about the audit and the financial statements, unless the SEC determines that the application of such requirements to emerging growth companies is necessary;

● exemption from the requirements of holding a nonbinding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved by stockholders;

● option to adopt new or revised accounting standards on the same timeline as private companies through the extended transition period permitted under Section 13(a) of the Exchange Act and Section 107 of the JOBS Act;

● reduced financial statement disclosure obligations, permitting the presentation of only two years of audited financial statements in a registration statement, rather than three; and

● reduced disclosure obligations regarding executive compensation arrangements in our periodic reports, registration statements, and proxy statements.

We will remain an emerging growth company until the earlier of (i) the last day of our fiscal year following the fifth anniversary of the date of our first sale of our common stock pursuant to an effective registration statement under the Securities Act; (ii) the last day of the fiscal year in which our total annual gross revenues equal or exceed $1.235 billion; (iii) on the last day of the fiscal year in which we become a large accelerated filer, which generally requires (a) our market value of our ordinary shares held by non-affiliates (public float) exceeds $700 million as of the end of our second fiscal quarter, (b) we have been subject to the requirements of Section 13(a) or 15(d) of the Exchange Act for at least twelve months, and (c) we have filed at least one annual report pursuant to those sections; and (iv) the date on which we have issued more than $1 billion in non-convertible debt securities over the prior three-year period.

We cannot predict if investors will find our common stock less attractive if we choose to rely on any of the exemptions afforded to emerging growth companies. If some investors find our securities less attractive as a result of our reliance on these exemptions, the trading price of our common stock could suffer, the trading market for our common stock may be less liquid, and our common stock price may be subject to increased volatility.

Further, Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a Securities Act registration statement declared effective or do not have a class of securities registered under the Exchange Act) are required to comply with the new or revised financial accounting standards. The JOBS Act provides that a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such election to opt out is irrevocable. We have elected to use this extended transition period until we are no longer an emerging growth company or until we affirmatively and irrevocably opt out of the extended transition period, which means that when a standard is issued or revised and it has different application dates for public or private companies, we, as an emerging growth company, can adopt the new or revised standard at the time private companies adopt the new or revised standard.

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This may make comparison of our financial statements with another public company which is neither an emerging growth company nor an emerging growth company which has opted out of using the extended transition period difficult or impossible because of the potential differences in accounting standards used.

Additionally, we are a "smaller reporting company" as defined in Item 10(f)(1) of Regulation S-K. We may continue to be a smaller reporting company even after we are no longer an emerging growth company. Smaller reporting companies may take advantage of certain scaled disclosure obligations, including, among other things, providing only two years of audited financial statements and reduced disclosure obligations regarding executive compensation in our periodic reports, registration statements and proxy statements. We will remain a smaller reporting company for each fiscal year in which, as of the end of that year's second fiscal quarter, either (i) the market value of our ordinary shares held by non-affiliates (public float) is less than $250 million, or (ii) our annual revenues are less than $100 million in such completed fiscal year and either (a) we have no public float, or (b) our public float is less than $700 million.

We have elected to take advantage of certain reduced disclosure obligations in this Registration Statement and may elect to take advantage of other reduced reporting requirements in future filings. As a result, the information that we provide to our stockholders may be different from what you might receive from other public reporting companies in which you hold equity interests.

***Our ability to utilize our net operating loss carryforwards may be limited.***

As of December 31, 2025, we had U.S. federal and state net operating loss ("NOL") carryforwards of approximately $116.3 million and $36.9 million, respectively. Subject to certain limitations, we may use these NOL carryforwards to offset our taxable income for U.S. federal and state income tax purposes. If not utilized, our U.S. federal NOL carryforwards (and our state NOL carryforwards in conforming states) arising in taxable years beginning before 2018 will begin to expire in 2027. Under current law, U.S. federal NOL carryforwards arising in taxable years beginning after 2017 may be carried forward indefinitely, but their deductibility in any tax year is limited to 80% of our taxable income in such year before the deduction for such NOL carryforwards. Additionally, Section 382 of the Internal Revenue Code of 1986, as amended, may limit the NOL carryforwards we may use in any year for U.S. federal income tax purposes in the event we undergo an "ownership change." A Section 382 "ownership change" generally occurs if one or more stockholders or groups of stockholders who own at least 5% of a company's stock increase their ownership by more than 50 percentage points over their lowest ownership percentage within a rolling three-year period. Similar rules may apply under state tax laws.

We have conducted analyses of past equity offerings, and other transactions that had an impact on our ownership structure, with respect to the impact of Section 382 on our NOL carryforwards for all tax years from inception through December 31, 2025. Those analyses concluded that we experienced ownership changes in 2009, 2011, and 2020 and further determined that there were limitations on the amount of pre-ownership change NOL carryforwards that can be utilized annually to offset future taxable incomes. In addition, any future issuances or sales of our stock, including certain transactions involving our stock that are outside of our control, could result in future "ownership changes." "Ownership changes" that may occur in the future could result in the imposition of an annual limit on the amount of pre-ownership change NOL carryforwards and other tax attributes we can use to reduce our taxable income, potentially increasing and accelerating our liability for income taxes, and also potentially causing certain of those tax attributes to expire unused. Any limitation on our ability to use NOL carryforwards could, depending on the extent of such limitation and the NOL carryforwards previously used, result in our retaining less cash after payment of U.S. federal and state income taxes during any year in which we have taxable income, than we would retain if such NOL carryforwards were available as an offset against such income for U.S. federal and state income tax reporting purposes, which could adversely impact operating results.

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***Uncertainties in the interpretation and application of existing, new, and proposed tax laws and regulations could materially affect our tax obligations and effective tax rate.***

The tax regimes to which we are subject or under which we operate are unsettled and may be subject to significant change. The issuance of additional guidance related to existing or future tax laws, or changes to tax laws, tax treaties or regulations proposed or implemented by the current or a future U.S. presidential administration, Congress, or taxing authorities in other jurisdictions, including jurisdictions outside of the United States, could materially affect our tax obligations and effective tax rate. To the extent that such changes have a negative impact on us, including as a result of related uncertainty, these changes may adversely impact our business, financial condition, results of operations, and cash flows.

The amount of taxes we pay in different jurisdictions depends on the application of the tax laws of various jurisdictions, including the United States, to our international business activities, the relative amounts of income before taxes in the various jurisdictions in which we operate, new or revised tax laws, or interpretations of tax laws and policies, the outcome of current and future tax audits, examinations or administrative appeals, our ability to realize our deferred tax assets, and our ability to operate our business in a manner consistent with our corporate structure and intercompany arrangements. The taxing authorities of the jurisdictions in which we operate may challenge our methodologies for pricing intercompany transactions pursuant to our intercompany arrangements or disagree with our determinations as to the income and expenses attributable to specific jurisdictions. If such a challenge or disagreement were to occur, and our position was not sustained, we could be required to pay additional taxes, interest, and penalties, which could result in one-time tax charges, higher effective tax rates, reduced cash flows, and lower overall profitability of our operations. Our financial statements could fail to reflect adequate reserves to cover such a contingency. Similarly, a taxing authority could assert that we are subject to tax in a jurisdiction where we believe we have not established a taxable connection, often referred to as a "permanent establishment" under international tax treaties, and such an assertion, if successful, could increase our expected tax liability in one or more jurisdictions.

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**Risks Related to Government Regulation**

***Regulatory registrations or market clearances may be withdrawn or regulatory requirements may change.***

The manufacturing, testing, labelling, sale, and marketing of medical devices are subject to extensive regulation in the European Union, the Middle East, the U.S., and other jurisdictions. We have received CE mark approval to place many of our key products on the market in the European Union as well as Medical Device Marketing Authorization from the Saudi Food & Drug Authority to place certain of our products on the market in Saudi Arabia and Qatar, and are pursuing the required regulatory approvals to place our key products on the market in the U.S. However, regulatory registrations or market clearance of products can subsequently be withdrawn for a variety of reasons including failure by us or any third-party contractors we engage to manufacture our products from time to time to comply with manufacturing regulatory requirements. Regulators have the power to ban products we sell as well as to require the recall, repair, replacement, or refund of such products. Further, regulators may change their clearance policies or impose additional regulatory requirements on us that could increase our compliance costs, restrict our ability to maintain our current regulatory registrations or market clearances, prevent or delay clearance of future products under development, or impact our ability to modify our currently cleared products. We cannot guarantee that we will successfully maintain the registrations and clearances we currently have or obtain the additional registrations and clearances that we are seeking or may receive in the future, or that we will successfully obtain the registrations and clearances required for future products.

***The manufacturing facilities for our products must comply with stringent regulatory requirements.***

The manufacturing facilities for our products must meet stringent quality standards, including compliance with the FDA's Quality System Regulations in the United States and equivalent quality management standards internationally. Compliance with these complex quality system requirements is costly and resource intensive. We must maintain documentation, implement controls, and undergo regular audits to demonstrate ongoing compliance. To maintain CE mark approval, our Notified Body will regularly audit us and our suppliers. Although we have passed all audits to date, any failure to comply with the applicable regulatory requirements in the future can result in, among other things, temporary manufacturing shutdowns, product recalls, product shortages, bans on imports and exports and a damaged brand name.

***Defects or failures associated with our products could lead to recalls, safety alerts or litigation, as well as significant costs and negative publicity.***

Manufacturing flaws, component failures, design defects, off-label uses, or inadequate disclosure of product-related information could result in an unsafe condition or the injury or death of a patient. These problems could lead to a recall of, or issuance of a safety alert relating to, our products and result in significant costs, negative publicity, and adverse competitive pressure. The circumstances giving rise to recalls are, however, unpredictable, and any recalls of existing or future products could materially adversely affect our business, results of operations, financial condition, or cash flows.

The medical device industry has historically been subject to extensive litigation over product liability claims. There are high rates of mortality and other complications associated with some of the medical conditions suffered by the patients whom specialist physicians use our devices to treat, and we may be subject to product liability claims if our products cause, or merely appear to have caused, an injury or death. In addition, an injury or death that is caused by the activities of our suppliers, such as those that provide us with components and raw materials, or by an aspect of a treatment used in combination with our products, such as a complementary drug or anesthesia, may be the basis for a claim against us by patients, hospitals, healthcare providers, or others purchasing or using our products, even if our products were not the actual cause of such injury or death. An adverse outcome involving one of our products could result in reduced market acceptance and demand for all of our products and could harm our reputation and our ability to market our products in the future. In some circumstances, adverse events arising from or associated with the design, manufacture, or marketing of our products could result in the suspension or delay of regulatory reviews of our premarket notifications or applications for marketing. Any of the foregoing problems could disrupt our business and have a material adverse effect on our business, results of operation, financial condition, or cash flows.

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***The use, misuse or off-label use of our products may harm our image in the marketplace or result in injuries that lead to product liability suits, which could be costly to our business or result in FDA sanctions if we are deemed to have engaged in improper promotion of our products.***

We are only permitted to market, promote, label, or train physicians in our ablation products for the uses cleared by the relevant regulatory bodies in each market. Use of a device outside of its cleared or approved indication is known as "off-label" use. We cannot prevent a physician from using our products for off-label use, as the FDA does not restrict or regulate a physician's choice of treatment within the practice of medicine. However, if the FDA determines that our promotional activities, reimbursement advice, or training of sales representatives or physicians constitute promotion of an off-label use, the FDA could request that we modify our training or promotional or reimbursement materials or subject us to regulatory or enforcement actions, including, among other things, the issuance of an untitled letter, a warning letter, injunction, seizure, disgorgement of profits, civil fines, and criminal penalties. Other federal, state or foreign governmental authorities also might take action if they consider our promotion or training materials to constitute promotion of an uncleared or unapproved use, which could result in significant fines or penalties under other statutory authorities, such as laws prohibiting false claims for reimbursement. For example, the government may take the position that off-label promotion resulted in inappropriate reimbursement for an off-label use in violation of the Federal False Claims Act for which it might impose a civil fine and even pursue criminal action. In those possible events, our reputation could be damaged, and adoption of the products would be impaired. Although we train our sales force not to promote our products for off-label uses, and our instructions for use in all markets specify the intended use of our products, the FDA or another regulatory agency could conclude that we have engaged in off-label promotion.

There may be increased risk of injury and product liability if surgeons attempt to use our products off-label, misuse our products or do not follow recommended user techniques and guidelines. Product liability claims are expensive to defend and could divert our management's attention and result in substantial damage awards against us. Furthermore, the use of our products for indications other than those indications for which our products have been cleared by the FDA may not effectively treat such conditions, which could harm our reputation in the marketplace among surgeons and patients. Any of these events could harm our business and operating results.

***If any of our products cause or contribute to a death or a serious injury or malfunction in certain ways, we will be required to report under applicable medical device reporting regulations, which can result in voluntary corrective actions or agency enforcement actions.***

Under the FDA medical device reporting regulations, medical device manufacturers are required to report to the FDA information that a device has or may have caused or contributed to a death or serious injury or has malfunctioned in a way that would likely cause or contribute to death or serious injury if the malfunction of the device or one of our similar devices were to recur. If we fail to report these events to the FDA within the required timeframes, or at all, the FDA could take enforcement action against us. Any such adverse event involving our products also could result in future voluntary corrective actions, such as recalls or customer notifications, or agency action, such as inspection or enforcement action. Any corrective action, whether voluntary or involuntary, as well as defending ourselves in a lawsuit, will require the dedication of our time and capital, distract management from operating our business, and may harm our reputation and financial results.

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***Healthcare reform initiatives, policy changes, and other administrative and legislative proposals may adversely affect our business, financial condition, results of operations, and cash flows in our key markets.***

Many countries have instituted healthcare policy changes in an attempt to bring increasing spending on healthcare under control, which changes could limit the prices we are able to charge for our products or the coverage and reimbursement available for our products. For example, in the U.S., the Patient Protection and Affordable Care Act, as amended by the Health Care and Education Affordability Reconciliation Act (collectively, the "ACA"), enacted in March 2010, made changes that significantly impact the healthcare industry. In addition to the ACA, various healthcare reform proposals have also been proposed by U.S. federal and state governments and other national governments that may subject us to additional U.S. or foreign regulatory requirements. We cannot predict whether future healthcare initiatives will be implemented in or outside of the U.S., or the effect any future legislation or regulation will have on us. The expansion in any government's regulation of the healthcare industry may result in decreased profits, limited coverage or reimbursement available for our products, decreased acceptance and availability of our products, and reduced medical procedure volumes, all of which may adversely affect our business, financial condition, and results of operations.

There likely will continue to be legislative and regulatory proposals at the federal and state levels directed at containing or lowering the cost of healthcare. We cannot predict the initiatives that may be adopted in the future or their full impact. The continuing efforts of the government, insurance companies, managed care organizations and other payers of healthcare services to contain or reduce costs of healthcare may harm:

● our ability to set a price that we believe is fair for our products;

● our ability to generate revenue and achieve or maintain profitability; and

● the availability of capital.

Recently there has been heightened governmental scrutiny over the manner in which companies set prices for their marketed products, which has resulted in several U.S. Congressional inquiries and proposed and enacted federal legislation designed to bring transparency to product pricing and reduce the cost of products and services under government healthcare programs. Additionally, individual states in the United States have also increasingly passed legislation and implemented regulations designed to control product pricing, including price or patient reimbursement constraints, discounts, restrictions on certain product access, and marketing cost disclosure and transparency measures. Moreover, regional healthcare authorities and individual hospitals are increasingly using bidding procedures to determine what products to purchase and which suppliers will be included in their healthcare programs. Adoption of price controls and other cost-containment measures, and adoption of more restrictive policies in jurisdictions with existing controls and measures may prevent or limit our ability to generate revenue and attain profitability.

Various new healthcare reform proposals are emerging at the federal and state level. Any new federal and state healthcare initiatives that may be adopted could limit the amounts that federal and state governments will pay for healthcare products and services, and could harm our business, financial condition, and results of operations.

***If we fail to comply with U.S. federal and state fraud and abuse and other healthcare laws and regulations, including those relating to kickbacks and false claims for reimbursement, we could face substantial penalties, and our business operations and financial condition could be adversely affected.***

Healthcare providers and third-party payers play a primary role in the distribution, recommendation, ordering, and purchasing of any product for which we have or obtain marketing clearance or approval. Through our arrangements with principal investigators, healthcare professionals, and customers, we are exposed to broadly applicable anti-fraud and abuse, anti-kickback, false claims, and other healthcare laws and regulations that may constrain our business, our arrangements, and relationships with customers, and how we market, sell, and distribute our marketed medical devices. We have certain policies and procedures in place (a Code of Conduct and Anti-Bribery and Anti-Corruption Policy), but it is not always possible to identify and deter misconduct by our employees and other third parties, and the precautions we take to detect and prevent noncompliance may not be effective in protecting us from governmental investigations for failure to comply with applicable fraud and abuse or other healthcare laws and regulations.

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In the United States, we are subject to various state and federal anti-fraud and abuse laws, including, without limitation, the federal healthcare Anti-Kickback Statute and federal civil False Claims Act, federal data privacy and security laws, and federal transparency laws related to payments and/or other transfers of value made to physicians, other healthcare professionals, and teaching hospitals. There are similar laws in other countries. Our relationships and our distributors' relationships with physicians, other health care professionals, and hospitals are subject to scrutiny under these laws.

Healthcare fraud and abuse laws and related regulations are complex, and even minor irregularities can potentially give rise to claims that a statute or prohibition has been violated. The laws that may affect our ability to operate include:

● The Anti-Kickback Statute, which prohibits, among other things, knowingly and willingly soliciting, offering, receiving or paying remuneration, directly or indirectly, overtly or covertly, in cash or in kind, to induce or reward either the referral of an individual, or the purchase, order, or recommendation of, items or services for which payment may be made, in whole or in part, under a federal healthcare program, such as the Medicare and Medicaid programs. The term "remuneration" has been broadly interpreted to include anything of value, and the government can establish a violation of the Anti- Kickback Statute without proving that a person or entity had actual knowledge of the law or a specific intent to violate. In addition, the government may assert that a claim, including items or services resulting from a violation of the Anti-Kickback Statute, constitutes a false or fraudulent claim for purposes of the federal civil False Claims Act. The Anti-Kickback Statute is subject to evolving interpretations and has been applied by government enforcement officials to a number of common business arrangements in the medical device industry. There are a number of statutory exceptions and regulatory safe harbors protecting certain business arrangements from prosecution under the Anti- Kickback Statute; however, those exceptions and safe harbors are drawn narrowly, and there may be limited or no exception or safe harbor for many common business activities, such as reimbursement support programs, educational and research grants, or charitable donations. Practices that involve remuneration to those who prescribe, purchase, or recommend medical devices, including discounts, providing items or services for free or engaging such individuals as consultants, advisors, or speakers, may be subject to scrutiny if they do not fit squarely within an exception or safe harbor and would be subject to a facts and circumstances analysis to determine compliance with the Anti-Kickback Statute.

● Federal civil and criminal false claims laws, including the federal civil False Claims Act, and civil monetary penalties laws, which prohibit, among other things, persons or entities from knowingly presenting, or causing to be presented, a false or fraudulent claim for payment of government funds and knowingly making, using or causing to be made or used, a false record or statement to get a false claim paid or to avoid, decrease, or conceal an obligation to pay money to the federal government. A claim including items or services resulting from a violation of the Anti-Kickback Statute constitutes a false or fraudulent claim for purposes of the federal civil False Claims Act. Actions under the federal civil False Claims Act may be brought by the government or as a qui tam action by a private individual in the name of the government. These individuals, sometimes known as "relators" or, more commonly, as "whistleblowers," may share in any amounts paid by the entity to the government in fines or settlement. Many pharmaceutical and medical device manufacturers have been investigated and have reached substantial financial settlements with the federal government under the federal civil False Claims Act for a variety of alleged improper activities, including causing false claims to be submitted as a result of the marketing of their products for unapproved and thus non-reimbursable uses and interactions with prescribers and other customers, including those that may have affected their billing or coding practices and submission of claims to the federal government. Federal civil False Claims Act liability is potentially significant in the healthcare industry because the statute provides for treble damages and mandatory monetary penalties for each false or fraudulent claim or statement. Because of the potential for large monetary exposure, healthcare and medical device companies often resolve allegations without admissions of liability for significant and material amounts to avoid the uncertainty of treble damages and per claim penalties that may be awarded in litigation proceedings.

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● HIPAA, which imposes criminal and civil liability for, among other actions, knowingly and willfully executing, or attempting to execute, a scheme to defraud any healthcare benefit program, including private third-party payers, or knowingly and willfully falsifying, concealing or covering up a material fact or making a materially false, fictitious or fraudulent statement or representation, or making or using any false writing or document knowing the same to contain any materially false, fictitious, or fraudulent statement or entry in connection with the delivery of or payment for healthcare benefits, items, or services;

● HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act, or HITECH Act, and their implementing regulations, also impose obligations, including mandatory contractual terms, on covered entities subject to the rule, such as health plans, healthcare clearinghouses, and certain healthcare providers, as well as their business associates and their subcontractors that perform certain services for them or on their behalf involving the use or disclosure of individually identifiable health information with respect to safeguarding the privacy, security, and transmission of individually identifiable health information;

● The federal Physician Payments Sunshine Act, also known as Open Payments, which requires manufacturers of drugs, devices, biologics and medical supplies for which payment is available under Medicare, Medicaid, or the Children's Health Insurance Program to report annually, with certain exceptions, to the Centers for Medicare and Medicaid Services ("CMS") information related to payments or other "transfers of value" made to physicians, (defined to include doctors, dentists, optometrists, podiatrists, and chiropractors), certain other healthcare professionals (such as physician assistants and nurse practitioners), and teaching hospitals, and requires applicable manufacturers and group purchasing organizations to report annually to CMS ownership and investment interests held by physicians and their immediate family members; and

● Analogous state and foreign law equivalents of each of the above federal laws, such as anti-kickback and false claims laws which may apply to items or services reimbursed by any third-party payer, including commercial insurers; state and foreign laws that require medical device companies to comply with the industry's voluntary compliance guidelines and the applicable compliance guidance promulgated by the government or otherwise restrict payments that may be made to healthcare providers and other potential referral sources; state and foreign beneficiary inducement laws, which are laws that require medical device manufacturers to report information related to payments and other transfers of value to physicians and other healthcare providers or marketing expenditures; and state and foreign laws governing the privacy and security of health information in certain circumstances, many of which differ from each other in significant ways and may not have the same effect, thus complicating compliance efforts.

State and federal regulatory and enforcement agencies continue to actively investigate violations of healthcare laws and regulations, and the U.S. Congress continues to strengthen the arsenal of enforcement tools. Most recently, the Bipartisan Budget Act of 2018 ("BBA") increased the criminal and civil penalties that can be imposed for violating certain federal health care laws, including the Anti-Kickback Statute. Enforcement agencies also continue to pursue novel theories of liability under these laws. Government agencies have continued regulatory scrutiny and enforcement activity with respect to manufacturer reimbursement support activities and patient support programs, including bringing criminal charges or civil enforcement actions under the Anti-Kickback Statute, federal civil False Claims Act, and HIPAA's healthcare fraud and privacy provisions.

Because of the breadth of these laws and the narrowness of the statutory exceptions and regulatory safe harbors available under such laws, it is possible that some of our business activities, including certain sales and marketing practices, and financial arrangements with physicians, other healthcare providers and other customers, could be subject to challenge under one or more such laws. If an arrangement were deemed to violate the Anti- Kickback Statute, it may also subject us to violations under other fraud and abuse laws such as the federal civil False Claims Act and civil monetary penalties laws. Moreover, such arrangements could be found to violate comparable state fraud and abuse laws.

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Achieving and sustaining compliance with applicable federal and state anti-fraud and abuse laws may prove costly. If we or our employees are found to have violated any of the above laws, we may be subjected to substantial criminal, civil, and administrative penalties, including imprisonment, exclusion from participation in federal healthcare programs, such as Medicare and Medicaid, and significant fines, monetary penalties, forfeiture, disgorgement and damages, contractual damages, reputational harm, administrative burdens, diminished profits and future earnings, and the curtailment or restructuring of our operations, any of which could adversely affect our ability to operate our business and our financial results. Any action or investigation against us for the violation of these healthcare fraud and abuse laws, even if successfully defended, could result in significant legal expenses, and could divert our management's attention from the operation of our business. Companies settling federal civil False Claims Act, Anti-Kickback Statute, or civil monetary penalties law cases also may be required to enter into a Corporate Integrity Agreement with the Office of Inspector General in order to avoid exclusion from participation (i.e., loss of coverage for their products) in federal healthcare programs such as Medicare and Medicaid. Corporate Integrity Agreements typically impose substantial costs on companies to ensure compliance. Defending against any such actions can be costly, time-consuming, and may require significant personnel resources, and may have a material adverse effect on our business, financial condition, and results of operations.

***Our employees, independent contractors, consultants, strategic partners, distributors, and vendors may engage in misconduct or other improper activities, including noncompliance with regulatory standards and requirements.***

We are exposed to the risk that our employees, independent contractors, principal investigators, CROs, consultants, or vendors may engage in fraudulent or other illegal activity. Misconduct by these parties could include intentional, reckless, and/or negligent conduct or disclosure of unauthorized activities to us that violates: FDA regulations, including those laws requiring the reporting of true, complete and accurate information to the FDA; manufacturing standards; federal and state health care fraud and abuse laws and regulations; or laws that require the true, complete, and accurate reporting of financial information or data. In addition, sales, marketing, and business arrangements in the health care industry are subject to extensive laws and regulations intended to prevent fraud, kickbacks, self-dealing, and other abusive practices. These laws and regulations may restrict or prohibit a wide range of pricing, discounting, marketing and promotion, sales commission, customer incentive programs, and other business arrangements. Activities subject to these laws also involve the improper use or misrepresentation of information obtained in the course of clinical trials or creating fraudulent data in our nonclinical studies or clinical trials, which could result in regulatory sanctions and serious harm to our reputation.

It is not always possible to identify and deter misconduct by our employees and other third parties, and the precautions we take to detect and prevent this activity may not be effective in controlling unknown or unmanaged risks or losses or in protecting us from governmental investigations or other actions or lawsuits stemming from a failure to be in compliance with such laws or regulations. Additionally, we are subject to the risk that a person could allege such fraud or other misconduct, even if none occurred. If any such actions are instituted against us, and we are not successful in defending ourselves or asserting our rights, those actions could have a significant impact on our business, including the imposition of civil, criminal, and administrative penalties, damages, monetary fines, possible exclusion from participation in Medicare, Medicaid, and other federal health care programs, contractual damages, reputational harm, diminished potential profits and future earnings, and curtailment of our operations, any of which could adversely affect our business, financial condition, results of operations, or prospects.

***We could be adversely affected by violations of the Foreign Corrupt Practices Act ("FCPA") and similar worldwide anti-bribery laws and any investigation.***

Because of our international operations we could be adversely affected by violations of the FCPA and similar anti-bribery laws of other countries in which we provide services or have employees. The FCPA and similar anti-bribery laws generally prohibit companies and their intermediaries from making improper payments to government officials or other third parties for the purpose of obtaining or retaining business or gaining any business advantage. While our policies mandate compliance with these anti-bribery laws, we cannot provide assurance that our internal control policies and procedures always protect us from reckless or criminal acts committed by our employees, contractors, or agents. Failure to comply with the FCPA could result in the imposition of civil or criminal fines and penalties and could disrupt our business and adversely affect our results of operations, cash flows, and financial condition.

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***Failure to comply with anti-bribery, anti-corruption, and anti-money laundering laws, including the FCPA, as well as export control laws, customs laws, sanctions laws, and other laws governing our operations could result in civil or criminal penalties, other remedial measures, and legal expenses.***

As we grow our international presence, we are increasingly exposed to anti-corruption, trade and economic sanctions, and other restrictions imposed by the United States, the European Union, and other governments and organizations. The FCPA generally prohibits companies and their employees and third-party intermediaries from offering, promising, giving, or authorizing the provision of anything of value, either directly or indirectly, to a non-U.S. government official in order to influence official action or otherwise obtain or retain business. We may have direct or indirect interactions with officials and employees of government agencies or government-affiliated hospitals, universities, and other organizations. Violations of the FCPA and anti-corruption laws could result in fines, criminal sanctions against us, our officers, or our employees, and prohibitions on the conduct of our business. Violations would also negatively affect our business, reputation, financial condition, and results of operations.

In addition, our solutions may be subject to U.S. and foreign export controls, trade sanctions, and import laws and regulations. Governmental regulation of the import or export of our solutions, or our failure to obtain any required import or export authorization for our solutions, when applicable, could harm our international sales and adversely affect our revenue. Compliance with applicable regulatory requirements regarding the export of our solutions may create delays in the introduction of our solutions in international markets or, in some cases, prevent the export of our solutions to some countries altogether. Furthermore, U.S. export control laws and economic sanctions prohibit the shipment of certain products and services to countries, governments, and persons targeted by U.S. sanctions. If we fail to comply with export and import regulations and such economic sanctions, penalties could be imposed, including fines and/or denial of certain export privileges. Moreover, any new export or import restrictions, new legislation or shifting approaches in the enforcement or scope of existing regulations, or in the countries, persons, or products targeted by such regulations, could result in decreased use of our solutions by, or in our decreased ability to export our solutions to, existing or potential customers with international operations. Any decreased use of our solutions or limitation on our ability to export or sell access to our solutions would likely adversely affect our business.

We have implemented policies and procedures designed to ensure compliance by us and our directors, officers, employees, representatives, consultants, and agents with the FCPA, export control and economic sanctions laws, and other anti-corruption, anti-money-laundering and anti-terrorism laws, and regulations. We cannot assure you, however, that our policies and procedures are or will be sufficient or that directors, officers, employees, representatives, consultants, and agents have not engaged and will not engage in prohibited conduct for which we may be held responsible. Violations of the FCPA, export control and economic sanctions laws, or other anti-corruption, anti-money laundering and anti-terrorism laws, or regulations may result in severe criminal or civil sanctions, and we may be subject to other liabilities, which could have a material adverse effect on our business, financial condition, and results of operations.

***We have identified a material weakness in our internal control over financial reporting and, if we are unable to remediate this material weakness, if we identify additional material weaknesses in the future, or if we are unable to implement and maintain effective internal control over financial reporting in the future, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock may be negatively affected.***

As a company subject to SEC reporting requirements, we will be required to maintain internal controls over financial reporting and to report any material weaknesses in such internal controls. In addition, beginning with our second annual report on Form 10-K, we expect we will be required to furnish annual management assessments of the effectiveness of our internal control over financial reporting. However, while we remain an emerging growth company, we will not be required to include a report by our independent registered public accounting firm addressing these assessments pursuant to Section 404 of the Sarbanes-Oxley Act. We are continuing to develop and enhance our internal control over financial reporting to align with the standards contemplated by Section 404 of the Sarbanes-Oxley Act. Accordingly, our internal controls over financial reporting do not currently meet all of the standards contemplated by Section 404 of the Sarbanes-Oxley Act that we will eventually be required to meet. These reporting and other obligations may place significant demands on management, and administrative and operational resources, including accounting systems and resources.

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The process of designing, implementing, and testing the internal control over financial reporting required to comply with this obligation is time consuming, costly, and complicated. If we identify material weaknesses in our internal control over financial reporting, if we are unable to comply with the applicable requirements of Section 404 of the Sarbanes-Oxley Act in a timely manner or to assert that our internal control over financial reporting is effective, or, when applicable, if our independent registered public accounting firm is unable to express an opinion as to the effectiveness of our internal control over financial reporting, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of our common stock could be negatively affected, and we could become subject to investigations by the stock exchange on which our securities are then listed, the SEC, or other regulatory authorities, which could require additional financial and management resources.

In connection with the audit of our financial statements for the year ended December 31, 2025, we identified a material weakness in our internal control over financial reporting related to the Control Activities component of the COSO framework. This material weakness reflects that we did not maintain sufficient documented evidence that internal reviews were completed and we did not have a formal process to conduct a secondary review of manual journal entries.

We are in the process of designing and implementing a remediation plan intended to address the identified material weakness, including enhancing documentation of internal reviews, formalizing secondary review procedures over manual journal entries, and implementing additional controls to validate the completeness and accuracy of information used in our financial close process.

There can be no assurance that our remediation efforts will remediate the identified material weakness in a timely manner or at all, or that we will not identify additional material weaknesses or significant deficiencies in the future, any of which could further adversely affect our ability to accurately and timely report our financial condition and results of operations.

***Changes in U.S. trade policies, including tariffs and import restrictions, may increase our costs, disrupt our supply chain, and harm our competitive position.***

The U.S. government has imposed, and may continue to impose, tariffs and other trade restrictions on imports from various countries, including tariffs on medical devices, components, raw materials, and related goods. While the majority of our products are manufactured in our Burnsville, Minnesota facility using domestically-sourced components and materials, we face material exposure to the effects of U.S. trade policy and retaliatory tariffs imposed by foreign governments, particularly in our key international markets.

In response to U.S. tariffs, the European Union has imposed retaliatory tariffs on selected U.S. exports, and additional measures remain under consideration. Although U.S.-manufactured medical devices currently benefit from relatively lower tariff exposure compared to other product categories, the European Union has considered broader retaliatory measures that could include medical device-related products and components. If the European Union or other trading partners increase tariffs on U.S. medical devices or medical technology imports, European hospitals and healthcare providers may face higher procurement costs, which could result in reduced demand for our products, delayed purchasing decisions, or price reductions we may be forced to accept to remain competitive.

The tariff environment remains highly fluid, with frequent policy changes, legal challenges to tariff authority, and ongoing trade negotiations. If trade tensions escalate further or retaliatory tariffs are imposed on U.S. medical device exports, our ability to penetrate and expand in international markets could be materially adversely affected, our international revenue growth could be substantially delayed or reduced, and our ability to achieve profitability and positive cash flow could be materially impaired.

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***We are or may become subject to stringent privacy laws, information security laws, regulations, policies and contractual obligations related to data privacy and security, and changes in such laws, regulations, policies, contractual obligations and failure to comply with such requirements could subject us to significant fines and penalties, which may have a material adverse effect on our business, financial condition or results of operations.***

There are multiple privacy and data security laws that may impact our business activities in the U.S. and in other countries where we conduct trials or where we may do business in the future. These laws are evolving and may increase both our obligations and our regulatory risks in the future. Currently, we receive sensitive personally identifiable information, including health and genetic information, through the clinical trial process and may receive such information the course of research collaborations. As such, we also may be subject to various state laws regulating the use or disclosure of this information or requiring notification of affected individuals and state regulators in the event of a breach of personal information.

Furthermore, certain health privacy laws, data breach notification laws, consumer protection laws and genetic information laws may apply directly to our operations and/or those of our collaborators and may impose restrictions on our collection, use and dissemination of individuals' health information. Individuals from whom we or our collaborators may obtain health information, as well as the healthcare providers who may share this information with us, may have statutory or contractual rights that limit the ability to use and disclose the information. We may be required to expend significant capital and other resources to ensure ongoing compliance with applicable privacy and data security laws. Claims that we have violated individuals' privacy rights or breached our contractual obligations, even if we are not found liable, could be expensive and time-consuming to defend and could result in adverse publicity that could harm our business.

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**Risks Related to our Intellectual Property**

***We are dependent on the protection and enforcement of our intellectual property rights.***

Among other intellectual property rights, we rely on patents to establish our intellectual property rights and protect our products. The protection of the intellectual property we rely upon is critical to our business and commercial success. If we are unable to protect or enforce the intellectual property rights embodied in our products, there is a risk that other companies will incorporate the intellectual property into their technology, which could adversely affect our ability to compete in the cardiac catheter ablation market. Our patent portfolio comprises of 21 issued U.S. patents, 71 corresponding granted foreign patents, and 10 pending applications in national phase or published. No assurance can be given that the pending applications will result in granted patents. Furthermore, there is a risk that our granted patents could be found by a court to be invalid or unenforceable or revoked before their planned expiry. There is also the risk that the granted patents may not provide us with sufficient protection against competitive products and therefore we may not be able to prevent competitors from copying our products and technology. If our patents and other intellectual property rights do not adequately protect our products, we may lose market share to our competitors and be unable to operate our business profitably.

***We may be subject to future third-party intellectual property rights disputes.***

We do not believe that our activities infringe any third-party's intellectual property rights. However, in the future we may be subjected to infringement claims or litigation arising out of patents and pending applications of our competitors, or third parties or intellectual property authorities may re-examine the patentability of licensed or owned patents. The defense and prosecution of intellectual property claims are costly and time consuming to pursue, and their outcome is uncertain. If we infringe the rights of third parties, we could be prevented from selling products, which would have a significant negative effect on our business and financial position. We have not budgeted for potential legal costs of intellectual property claims and significant legal costs would have a negative effect on our financial position.

***If we are unable to protect the confidentiality of our other proprietary information, our business and competitive position may be harmed.***

In addition to patent protection, we also rely on other proprietary rights, including protection of trade secrets, and other proprietary information that is not patentable or that we elect not to patent. However, trade secrets can be difficult to protect, and some courts are less willing or unwilling to protect trade secrets. To maintain the confidentiality of our trade secrets and proprietary information, we rely heavily on confidentiality provisions that we have in contracts with our employees, consultants, contractors, collaborators, and others upon the commencement of their relationship with us. We cannot guarantee that we have entered into such agreements with each party that may have or have had access to our trade secrets or proprietary technology and processes. We may not be able to prevent the unauthorized disclosure or use of our technical knowledge or other trade secrets by such third parties, despite the existence generally of these confidentiality restrictions. These contracts may not provide meaningful protection for our trade secrets, know-how, or other proprietary information in the event of any unauthorized use, misappropriation or disclosure of such trade secrets, know-how, or other proprietary information. Despite the protections we place on our intellectual property or other proprietary rights, monitoring unauthorized use and disclosure of our intellectual property is difficult, and we do not know whether the steps we have taken to protect our intellectual property or other proprietary rights will be adequate. Enforcing a claim that a party illegally disclosed or misappropriated a trade secret is difficult, expensive, and time-consuming, and the outcome is unpredictable. The laws of many foreign countries will not protect our intellectual property or other proprietary rights to the same extent as the laws of the United States. Consequently, we may be unable to prevent our proprietary technology from being exploited in the United States and abroad, which could affect our ability to expand in domestic and international markets or require costly efforts to protect our technology.

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To the extent our intellectual property or other proprietary information protection is incomplete, we are exposed to a greater risk of direct competition. A third party could, without authorization, copy or otherwise obtain and use our products or technology, or develop similar technology. Our competitors could purchase our products and attempt to replicate some or all of the competitive advantages we derive from our development efforts or design around our protected technology. Our failure to secure, protect, and enforce our intellectual property rights could substantially harm the value of our products, brand, and business. The theft or unauthorized use or publication of our trade secrets and other confidential business information could reduce the differentiation of our products and harm our business, the value of our investment in development or business acquisitions could be reduced, and third parties might make claims against us related to losses of their confidential or proprietary information.

Further, it is possible that others will independently develop the same or similar technology or otherwise obtain access to our unpatented technology, and in such cases, we could not assert any trade secret rights against such parties. Costly and time-consuming litigation could be necessary to enforce and determine the scope of our trade secret rights and related confidentiality and nondisclosure provisions. If we fail to obtain or maintain trade secret protection, or if our competitors obtain our trade secrets or independently develop technology similar to ours or competing technologies, our competitive market position could be materially and adversely affected. In addition, some courts are less willing or unwilling to protect trade secrets, and agreement terms that address non-competition are difficult to enforce in many jurisdictions and might not be enforceable in certain cases.

We also seek to preserve the integrity and confidentiality of our data and other confidential information by maintaining physical security of our premises and physical and electronic security of our information technology systems. While we have confidence in these individuals, organizations, and systems, agreements or security measures may be breached and detecting the disclosure or misappropriation of confidential information and enforcing a claim that a party illegally disclosed or misappropriated confidential information is difficult, expensive, and time-consuming, and the outcome is unpredictable. Further, we may not be able to obtain adequate remedies for any breach. Any of the foregoing could materially and adversely affect our business, financial condition, and results of operations.

***If our trademarks and trade names are not adequately protected, then we may not be able to build name recognition in our markets, and our business may be adversely affected.***

The registered and unregistered trademarks and trade names that we own may be challenged, infringed, circumvented, declared generic, lapsed, or determined to be infringing on or dilutive of other marks. We may not be able to protect our rights in these trademarks and trade names, which we need in order to build name recognition with potential customers and collaborators. In addition, third parties may file for registration of trademarks similar or identical to our trademarks, thereby impeding our ability to build brand identity and possibly leading to market confusion. If they succeed in registering or developing common-law rights in such trademarks, and if we are not successful in challenging such third-party rights, we may not be able to use these trademarks to develop brand recognition of our technologies, products, or services. In addition, there could be potential trademark infringement claims brought by owners of other registered or unregistered trademarks or trademarks that incorporate variations of our registered or unregistered trademarks or trade names. If we are unable to establish name recognition based on our trademarks and trade names, we may not be able to compete effectively, which could have a material adverse effect on our business, financial condition, results of operations, and prospects.

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***We may become a party to intellectual property litigation or administrative proceedings that could be costly and could interfere with our ability to sell and market our products.***

The medical device industry has been characterized by extensive litigation regarding patents, trademarks, trade secrets, and other intellectual property rights, and companies in the industry have used intellectual property litigation to gain a competitive advantage. It is possible that U.S. and foreign patents and pending patent applications or trademarks controlled by third parties may be alleged to cover our products, or that we may be accused of misappropriating third parties' trade secrets. Our competitors, many of which have substantially greater resources and have made substantial investments in patent portfolios, trade secrets, trademarks, and competing technologies, may have applied for or obtained, or may in the future apply for or obtain, patents or trademarks that will prevent, limit, or otherwise interfere with our ability to make, use, sell, and/or export our products or to use product names. Because patent applications can take years to issue and are often afforded confidentiality for some period of time, there may currently be pending applications, unknown to us, that later result in issued patents that could cover one or more of our products. Moreover, in recent years, individuals and groups that are non-practicing entities, commonly referred to as "patent trolls," have purchased patents and other intellectual property assets for the purpose of making claims of infringement in order to extract settlements. From time to time, we may receive threatening letters, notices or "invitations to license," or may be the subject of claims that our products and business operations infringe or violate the intellectual property rights of others. The defense of these matters can be time consuming, costly to defend in litigation, divert management's attention and resources, damage our reputation and brand, and cause us to incur significant expenses or make substantial payments. Vendors from whom we purchase hardware or software may not indemnify us in the event that such hardware or software is accused of infringing a third party's patent or trademark or of misappropriating a third party's trade secret, or any indemnification granted by such vendors may not be sufficient to address any liability and costs we incur as a result of such claims. Additionally, we may be obligated to indemnify our customers or business partners in connection with litigation and to obtain licenses or refund subscription fees, which could further exhaust our resources.

Even if we believe a third party's intellectual property claims are without merit, there is no assurance that a court would find in our favor, including on questions of infringement, validity, enforceability, or priority of patents. The strength of our defenses will depend on the patents asserted, the interpretation of these patents, and our ability to invalidate the asserted patents. A court of competent jurisdiction could hold that these third-party patents are valid, enforceable, and infringed, which could materially and adversely affect our ability to commercialize any products or technology we may develop, and any other products or technologies covered by the asserted third-party patents. In order to successfully challenge the validity of any such U.S. patent in federal court, we would need to overcome a presumption of validity. As this burden is a high one requiring us to present clear and convincing evidence as to the invalidity of any such U.S. patent claim, there is no assurance that a court of competent jurisdiction would invalidate the claims of any such U.S. patent. Conversely, the patent owner need only prove infringement by a preponderance of the evidence, which is a lower burden of proof.

Further, if patents, trademarks, or trade secrets are successfully asserted against us, this may harm our business and result in injunctions preventing us from developing, manufacturing, or selling our products, or result in obligations to pay license fees, damages, attorney fees, and court costs, which could be significant. In addition, if we are found to willfully infringe on third-party patents or trademarks or to have misappropriated trade secrets, we could be required to pay treble damages in addition to other penalties.

Although patent, trademark, trade secret, and other intellectual property disputes in the medical device area have often been settled through licensing or similar arrangements, costs associated with such arrangements may be substantial and could include ongoing royalties. We may be unable to obtain necessary licenses on satisfactory terms, if at all. In addition, if any license we obtain is non-exclusive, we may not be able to prevent our competitors and other third parties from using the intellectual property or technology covered by such license to compete with us. If we do not obtain the necessary licenses, we may not be able to redesign our products to avoid infringement. Any of these events could materially and adversely affect our business, financial condition, and results of operations.

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Similarly, interference or derivation proceedings provoked by third parties or brought by the U.S. Patent and Trademark Office ("USPTO") may be necessary to determine priority with respect to our patents, patent applications, trademarks, or trademark applications. We may also become involved in other proceedings, such as reexamination, inter partes review, derivation, or opposition proceedings before the USPTO or other jurisdictional body relating to our intellectual property rights or the intellectual property rights of others. Adverse determinations in a judicial or administrative proceeding or failure to obtain necessary licenses could prevent us from manufacturing our products or using product names, which would have a significant adverse impact on our business, financial condition, and results of operations.

Additionally, we may file lawsuits or initiate other proceedings to protect or enforce our patents or other intellectual property rights, which could be expensive, time consuming, and unsuccessful. Competitors may infringe our issued patents or other intellectual property, which we may not always be able to detect. To counter infringement or unauthorized use, we may be required to file infringement claims, which can be expensive and time-consuming. Any claims we assert against perceived infringers could provoke these parties to assert counterclaims against us alleging that we infringe their intellectual property or alleging that our intellectual property is invalid or unenforceable. Grounds for a validity challenge could be an alleged failure to meet any of several statutory requirements, including lack of novelty, obviousness, or non-enablement. Grounds for an unenforceability assertion could be an allegation that someone connected with prosecution of the patent withheld relevant information from the USPTO, or made a misleading statement, during prosecution. Third parties may raise challenges to the validity of certain of our owned or in-licensed patent claims before administrative bodies in the United States or abroad, even outside the context of litigation. Such mechanisms include re-examination, post-grant review, inter partes review, interference proceedings, derivation proceedings, and equivalent proceedings in foreign jurisdictions (e.g., opposition proceedings). In any such lawsuit or other proceedings, a court or other administrative body may decide that a patent of ours is invalid or unenforceable, in whole or in part, construe the patent's claims narrowly, or refuse to stop the other party from using the technology at issue on the grounds that our patents do not cover the technology in question.

The outcome following legal assertions of invalidity and unenforceability is unpredictable. If a third party were to prevail on a legal assertion of invalidity or unenforceability, we would lose at least part, and perhaps all, of the patent protection on our products or products that we may develop. If our patents are found to be valid and infringed, a court may refuse to grant injunctive relief against the infringer and instead grant us monetary damages and/or ongoing royalties. Such monetary compensation may be insufficient to adequately offset the damage to our business caused by the infringer's competition in the market. An adverse result in any litigation or other proceeding could put one or more of our patents at risk of being invalidated or interpreted narrowly. Any of these events could materially and adversely affect our business, financial condition, and results of operations.

Even if resolved in our favor, litigation or other proceedings relating to intellectual property claims may cause us to incur significant expenses and could distract our personnel from their normal responsibilities. In addition, there could be public announcements of the results of hearings, motions, or other interim proceedings or developments, and if securities analysts or investors perceive these results to be negative, it could have a substantial adverse effect on the price of our common stock. Such litigation or proceedings could substantially increase our operating losses and reduce the resources available for development activities or any future sales, marketing, or distribution activities. We may not have sufficient financial or other resources to conduct such litigation or proceedings adequately. Some of our competitors may be able to sustain the costs of such litigation or proceedings more effectively than we can because of their greater financial resources and more mature and developed intellectual property portfolios. Furthermore, because of the substantial amount of discovery required in connection with intellectual property litigation, there is a risk that some of our confidential or sensitive information could be compromised by disclosure in the event of litigation. Uncertainties resulting from the initiation and continuation of patent and other intellectual property litigation or other proceedings could have a material adverse effect on our business, financial condition, and results of operations.

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**Risks Related to our CDIs and Common Stock**

***Our common stock may never be listed on a major U.S. stock exchange which could materially limit liquidity and increase volatility for investors.***

While we may seek the listing of our common stock on a U.S. securities exchange at some time in the future, there can be no assurance as to if, when, or under what circumstances we will be able to satisfy such listing standards or that our common stock will be accepted for listing on any such exchange. Should we fail to satisfy the initial listing standards of such exchange, or our common stock is otherwise rejected for listing, the trading price of our CDIs could suffer, the trading market for our CDIs may be less liquid, and our CDI price may be subject to increased volatility.

***Investors may have difficulty in reselling their CDIs or shares of common stock due to the lack of an established trading market in the U.S. or potentially restrictive state securities laws.***

In compliance with the SEC's no-action position taken in *Regulation S - Initial Public Offerings of U.S. Companies on the Australian Stock Exchange Limited (January 7, 2000)* providing relief from certain requirements of Regulation S under the Securities Act for U.S. companies listed on the ASX, our ASX trading ticker was tagged with a "FOR US" designation following the August 30, 2019, Australian initial public offering (the "IPO"), indicating that the CDIs are restricted under Regulation S and, as a result, may not be sold to U.S. persons (except for "qualified institutional buyers" as such term is defined in Rule 144A under the Securities Act). We expect that the securities will trade under the "FOR US" designation for the foreseeable future. Neither our CDIs nor the shares of our common stock trade on any U.S. over-the-counter market or securities exchange, and we have no current plans to seek quotation on an over-the-counter market or list our shares on a national securities exchange in the U.S. (although we may do so in the future).

To our knowledge, there is no current trading activity among our U.S.-domiciled stockholders. As such, there can be no guarantee that an active market in our securities will develop or continue, whether in the U.S., Australia, or elsewhere, or that the market price of our securities will increase. If a market does not develop or is not sustained, it may be difficult for investors to sell their securities. The holders of our shares of common stock, as well as potential purchasers, should be aware that there might be significant state securities laws, or "blue sky" regulations, limiting the ability of investors to resell our shares. Furthermore, the market price for our CDIs may fall or be made more volatile because of the relatively low volume of trading in our securities. When trading volume is low, significant price movement can be caused by trading in a relatively small number of CDIs. If illiquidity arises, there is a risk that stockholders will be unable to realize their investment in us.

***The issuance of additional securities in connection with financings, investments, our equity incentive plans, or otherwise will dilute all other stockholders and may adversely affect the value of and rights associated with our common stock.***

Our current stockholders do not have preemptive rights to any shares that we issue in the future. Under our Amended and Restated Certificate of Incorporation, we have the authority to issue a total of 560,000,000 shares of capital stock, consisting of 535,000,000 shares of common stock and 25,000,000 shares of undesignated preferred stock. Of the total shares of common stock authorized, 500,000,000 are classified as Class A common stock and 35,000,000 are classified as Class B common stock.

Subject to compliance with applicable laws, rules, and regulations and the provisions of our Amended and Restated Certificate of Incorporation, the Board of Directors ("Board") is authorized to issue preferred stock from time to time in one or more series, to fix the number of shares, and to determine or alter for each such series the voting powers, designation, preferences, and rights and such qualifications, limitations, or restrictions thereof. The voting powers, designation, preferences, and rights of these series of preferred stock may (i) be senior to or on parity with our common stock, which may reduce its value, and (ii) adversely affect the rights of the holders of the common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, delay, defer, discourage, or prevent a change in control of Imricor and may adversely affect the market price of our common stock and the rights of the holders of common stock.

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Subject to compliance with applicable laws, rules, and regulations (including the listing rules of the ASX "the ASX Listing Rules") and the provisions of our Amended and Restated Certificate of Incorporation, the Board may also issue common stock or securities convertible into common stock from time to time in connection with financing, investment, our equity incentive plans, or otherwise. Any such issuance could result in substantial dilution to our existing stockholders and may also reduce their proportionate voting power and ownership interest. Our common stock consists of two classes, Class A common stock and Class B common stock, which have distinct rights and limitations. Subject to the rights of the preferred stock that may come into existence from time to time, each share of Class A common stock entitles the holder to one vote on each matter properly submitted to stockholders and participates equally in dividends and other distributions as may be declared by the Board. Class B common stock does not carry voting rights and is not entitled to receive dividends or other distributions. The issuance of additional Class A common stock or securities convertible into Class A common stock may dilute the proportionate voting power and ownership interest of existing Class A stockholders. Such issuance could cause the market price of our common stock to decline, which will negatively impact the value of a stockholder's investment, especially if we sell these securities at prices less than the price paid for shares.

***The market price of our CDIs and common stock may be volatile, which could cause the value of our common stock to decline and limit an investor***'***s ability to realize any return on investment.***

The ability for investors to achieve a return on their investment will largely depend on an appreciation in the market price of our CDIs. The CDIs and the underlying common stock carry no guarantee with respect to the payment of dividends, return of capital, or market value, and, as we do not currently intend to pay dividends in the foreseeable future, investor returns will depend entirely on the market performance of these securities. There is no assurance that the CDIs or common stock will appreciate in value or even maintain their current price, and therefore investors may not achieve any return on investment.

The trading price of our CDIs on the ASX has been volatile and may continue to be subject to fluctuations. In addition, the trading volume of our CDIs may fluctuate and cause significant price variations to occur. Securities markets worldwide experience significant price and volume fluctuations as a result of a variety of factors, many of which are beyond our control but may nonetheless decrease the market price of our CDIs, regardless of our actual operating performance including, but not limited to:

● public reaction to our press releases, announcements, and filings with the SEC and ASX;

● our operating and financial performance;

● changes in market valuations of similar companies;

● departures of key personnel;

● commencement of or involvement in litigation;

● changes in economic and political conditions, financial markets, and/or the technology industry;

● interest rate fluctuations;

● changes in accounting standards, policies, guidance, interpretations, or principles;

● actions by our stockholders;

● the failure of securities analysts to cover our CDIs and/or changes in their recommendations and estimates of our financial performance;

● future sales of our common stock or CDIs;

● trading prices and trading volumes of our CDIs on the ASX; and

● the other factors described in these "Risk Factors".

The fluctuations could become even larger if our securities trade on more than one stock exchange or in different markets. Our CDIs are currently listed on the ASX, and we may list our common stock on a U.S. securities exchange in the future. Trading in our common stock and CDIs therefore may take place in different currencies (U.S. dollars on a U.S. securities exchange and Australian dollars on the ASX), and at different times (resulting from different time zones, different trading days, and different public holidays in the United States and Australia). The trading prices of our CDIs and our common stock on two markets may differ because of these, or other, factors. Any decrease in the price of our CDIs or common stock on either market could cause a decrease in the trading prices of our CDIs or our common stock on the other market.

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In addition, investors may seek to profit by exploiting the difference, if any, between the price of our CDIs on the ASX and the price of shares of our common stock on a U.S. securities exchange. Such arbitrage activities could cause our stock price in the market with the higher value to decrease to the price set by the market with the lower value and could also lead to significant volatility in the price of our common stock or CDIs.

***The requirements of being an SEC registrant may strain our resources, divert management***'***s attention, and affect our ability to attract and retain qualified directors and officers.***

As an SEC registrant, we will be subject to the reporting and corporate governance requirements of the Exchange Act. Compliance with these rules and regulations will increase our legal and financial compliance costs, make some activities more difficult, time-consuming, or costly and increase demand on our systems and resources, particularly after we are no longer an "emerging growth company" as defined in the JOBS Act. Among other things, the Exchange Act requires that we file annual, quarterly, and current reports with respect to our business and results of operations and maintain effective disclosure controls and procedures and internal control over financial reporting.

In order to improve our disclosure controls and procedures and internal control over financial reporting to meet this standard, significant resources and management oversight may be required. Our current controls and any new controls that we develop may become inadequate and material weaknesses in our internal control over financial reporting may be discovered in the future. If we cannot demonstrate effective internal control over financial reporting, or if our internal control over financial reporting is perceived as inadequate, or if we are unable to produce timely or accurate financial statements, investors may lose confidence in our operating results, and the price of our common stock could decline. Furthermore, management's attention may be diverted from other business concerns, which could harm our business, financial condition, results of operations, and prospects. Although we have already hired additional personnel to help comply with these requirements, we may need to further expand our legal and finance departments in the future, which will increase our costs and expenses.

In addition, changing laws, regulations, and standards relating to corporate governance and public disclosure may create uncertainty for SEC registrants, increasing legal and financial compliance costs and making some activities more time-consuming. These laws, regulations, and standards are subject to varying interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve over time as new guidance is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest resources to comply with evolving laws, regulations, and standards, and this investment may result in increased general and administrative expense and a diversion of management's time and attention from revenue-generating activities to compliance activities. If our efforts to comply with new laws, regulations, and standards differ from the activities intended by regulatory or governing bodies, regulatory authorities may initiate legal proceedings against us, and our business and prospects may be harmed. As a result of disclosure of information in the filings required of an SEC registrant and in this Registration Statement, our business and financial condition will become more visible, which may result in threatened or actual litigation. If such claims are successful, our business, financial condition, results of operations, and prospects could be materially harmed, and even if the claims do not result in litigation or are resolved in our favor, these claims, and the time and resources necessary to resolve them, could divert the resources of our management and materially harm our business, financial condition, results of operations, and prospects.

Being an SEC registrant and these new rules and regulations may make it more expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. These factors could also make it more difficult for us to attract and retain qualified executive officers and members of our Board, particularly to serve on our Audit and Risk Committee and Nomination and Remuneration Committee.

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***Our senior management team has limited experience managing an SEC registrant, and regulatory compliance may divert our attention from the day-to-day management of our business.***

The individuals who constitute our senior management team have limited experience managing an SEC registrant and limited experience complying with the increasingly complex laws pertaining to SEC registrants. Our senior management team may not successfully or efficiently manage an SEC registrant subject to significant regulatory oversight and reporting obligations under United States securities laws. In particular, these obligations require substantial attention from our senior management team and could divert their attention from the day-to-day management of our business.

***If securities and industry analysts do not publish, regularly update, or publish inaccurate or unfavorable research about our business, the trading price and trading volume of the common stock could decline.***

The trading market for our CDIs on the ASX may be influenced by the research and reports that industry or securities analysts publish about us or our business. If one or more of the analysts currently covering our securities ceases coverage, the trading price for our CDIs on the ASX could be negatively impacted. If one or more of these analysts fail to publish reports on us regularly, we could lose visibility in the financial markets and the trading price for our CDIs on the ASX could be negatively impacted. If any of the analysts who cover us issue an adverse or misleading opinion regarding us, our business model, our intellectual property, or our CDI performance, or if our results of operations fail to meet the expectations of analysts, the trading price or trading volume of our CDIs would likely decline.

***The costs and management time involved in complying with Delaware laws, Australian laws, and U.S. reporting requirements are likely to be significant.***

As a U.S. reporting company, we will incur significant legal, accounting, and other expenses in connection with our public disclosure and other obligations. For example, we will incur costs associated with compliance with the rules and regulations of the SEC, the Sarbanes-Oxley Act, and the Dodd-Frank Wall Street Reform and Consumer Protection Act. Registration under the Exchange Act will involve our filing of an initial registration statement with the SEC and the filing of ongoing annual, quarterly, and current reports on Forms 10-K, 10-Q and 8-K, respectively. These SEC periodic reports will be in addition to the periodic filings required by the ASX Listing Rules, although we intend to seek a waiver from ASX to allow us to file our SEC reports with ASX.

As a Delaware company with an ASX listing and a registration as a foreign company in Australia, we will also need to ensure ongoing compliance with Delaware law and relevant Australian laws and regulations, including the ASX Listing Rules and certain provisions of the Australian *Corporations Act 2001* (Cth) ("Corporations Act"). To the extent of any inconsistency between Delaware law and Australian law and regulations, we may need to make changes to our business operations, structure, or policies to resolve such inconsistency. If we are required to make such changes, this is likely to result in interruptions to our operations, additional demands on key managers and extra costs.

We expect these rules and regulations to increase our legal and financial compliance costs and to make some activities more time-consuming and costly, although we are currently unable to estimate these costs to any degree of certainty. Our management will need to devote a substantial amount of time to new compliance requirements, and we may need to implement additional procedures and controls in order to satisfy new reporting requirements. These laws and regulations also could make it more difficult and costly for us to obtain certain types of insurance, including director and officer liability insurance, and we may be forced to accept reduced policy limits and coverage or incur substantially higher costs to obtain the same or similar coverage. These laws and regulations could also make it more difficult to attract and retain qualified people to serve on our Board and Board committees and serve as executive officers due to perceived risk. Furthermore, if we are unable to satisfy our obligations as a reporting company, we could be subject to fines, sanctions, and other regulatory action and potentially civil litigation.

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***Provisions of our constituent documents and Delaware law could make an acquisition of us more difficult.***

Certain provisions of our Certificate of Incorporation and Bylaws could discourage, delay, or prevent a merger, acquisition, tender offer, or other means of effecting a change of control that stockholders may consider favorable, including transactions in which stockholders might otherwise receive a premium for their CDIs. Furthermore, these provisions could frustrate attempts by stockholders to replace or remove members of the Board or make other changes in management. These provisions could also limit the price that investors might be willing to pay in the future for the CDIs, thereby depressing the market price of the CDIs. There is also a risk that stockholders who wish to participate in these transactions or other actions may not have the opportunity to do so. In addition, we are governed by the provisions of section 203 of the Delaware General Corporation Law, which may, unless certain criteria are met, prohibit certain interested stockholders, in particular those owning 15% or more of the voting rights on shares, from merging or engaging in various other business combinations with us for a prescribed period.

***Our Amended and Restated Bylaws designate the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain litigation.***

Our Amended and Restated Bylaws provide that unless we consent in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware will be the sole and exclusive forum for certain actions involving the Company. Any person or entity purchasing or otherwise acquiring any interest in shares of our capital stock (including holders of CDIs) will be deemed to have notice of, and consented to, this forum selection provision. This provision in our Amended and Restated Bylaws may have the effect of discouraging lawsuits against us or our directors and officers and may limit the ability of stockholders to obtain a favorable judicial forum for disputes with us.

***The different characteristics of the capital markets in Australia and the United States may negatively affect the trading price of our CDIs and common stock and may limit our ability to take certain actions typically performed by a U.S. company.***

We are subject to the ASX Listing Rules, applicable provisions of the Corporations Act, and certain other Australian regulatory requirements, and may in the future determine to concurrently list our shares on a U.S. securities exchange as well, which will have its own listing and regulatory requirements. Such exchanges will have different trading hours, trading characteristics (including trading volume and liquidity), trading and listing rules, and investor bases (including different levels of retail and institutional participation). As a result of these differences, the trading prices of our CDIs and our common stock may not be the same, even allowing for currency differences. Fluctuations in the price of our common stock due to circumstances unusual to the U.S. capital markets could materially and adversely affect the price of the CDIs, or vice versa. Certain events having significant negative impact specifically on the Australian capital markets may result in a decline in the trading price of our CDIs notwithstanding that such event may not impact the trading prices of securities listed in the United States generally or to the same extent, or vice versa.

In addition, the listing and regulatory requirements of the ASX may limit our ability to take certain actions typically performed by a U.S. company. For example, the ASX Listing Rules limit the amount of equity securities that a listed company can issue without the approval of its stockholders over any 12-month period to 15% of the outstanding share capital on issue at the start of the period, unless an exception applies. Failure to obtain this approval may make it more difficult for us to issue equity securities in the future at a time and at a price that we deem appropriate. The ASX Listing Rules also require stockholder approval for the granting of options and restricted stock units to our directors, even when the underlying equity incentive plan has already been approved. This creates a risk that, if stockholders do not approve the grants, our directors will not receive their expected amount of equity compensation. This may make it more difficult for us to attract and retain directors, which could have a material adverse effect on our business, results of operations, financial condition, and prospects.

Further, ASX Listing Rules prohibit us from buying back CDIs on-market at a price which is 5% or more above the volume weighted average market price of our CDIs, calculated over the last five days on which sales of CDIs were recorded before the day on which the purchase under the buy-back was made, which, as a result, may make it more difficult to repurchase our CDIs on-market. In addition, should we wish to undertake an on-market buy-back, the ASX may impose further requirements on us as if we were subject to the Corporations Act, which may include the need to obtain stockholder approval to do so.

Lastly, the ASX Listing Rules prohibit the issuance of equity securities by a company without stockholder approval during the three-month period after it learns that a person is making, or proposes to make, a takeover for its securities, unless an exception applies. As a result, if a hostile takeover bid is made in respect of our CDIs or common stock, the ASX Listing Rules may limit our ability to issue equity securities, either as a countermeasure to the takeover bid or to fund operations.

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| **Item 2.** | **Financial Information.** |

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**Management**'**s Discussion and Analysis of Financial Condition and Results of Operations** 

The following discussion and analysis of our financial condition and results of operations should be read together with our audited consolidated financial statements and the related notes for the years ended December 31, 2025, and 2024, which are included elsewhere in this Registration Statement. Our discussion contains forward-looking statements based upon expectations and beliefs concerning future developments and their potential effect upon our business that involve risks, uncertainties, and assumptions, such as statements regarding our plans, objectives, expectations, and intentions for our business. Our actual results and the timing of selected events could differ materially from those described in or implied by these forward-looking statements as a result of several factors, including those set forth in the section entitled "Risk Factors"*.* See also the section entitled "Disclosure Regarding Forward-Looking Statements."

**Overview**

Imricor is a U.S.-based medical device company that is leading the new field of real-time iCMR cardiac ablations – that is, cardiac ablations guided by real-time MRI, rather than by conventional x-ray fluoroscopy. Our principal focus is the design, manufacturing, sale, and distribution of MRI-compatible products for cardiac catheter ablation procedures.

The Vision-MR Ablation Catheter is our prime product offering, specifically designed to work under real-time MRI guidance, with the intent of enabling higher success rates along with a faster and safer treatment compared to conventional procedures using x-ray guided catheters. The Vision-MR Ablation Catheter has been approved in the EU, Qatar, and KSA with an indication for treating Type I atrial flutter. We also have approval for the sale of our capital product, the Advantage-MR EP Recorder/Stimulator System, in the EU, Qatar, KSA, and Australia. In June 2025, we received approval for our NorthStar Mapping System in the EU.

We are continuing enrollment in our VISABL-AFL clinical trial to support U.S. market entry of the Vision-MR Ablation Catheter and RF-5000 ablation generator system. In parallel with the clinical trial, we have secured market clearance from the FDA for the Vision-MR Diagnostic Catheter and NorthStar Mapping System. We are pursuing approvals for our other products, including the Advantage-MR EP Recorder/Stimulator System and the Vision-MR Dispersive Electrode, while the VISABL-AFL clinical trial is ongoing.

We sell our capital and consumable products to hospitals and clinics for use in iCMR labs, in which ablation procedures using the Vision-MR Ablation Catheter can be performed. We collaborate with GE Healthcare, Philips, and Siemens, the three leading global MRI vendors who provide MRI systems for iCMR labs, to target certain sites and support the design and construction of iCMR labs for those sites.

**Financial overview**

Imricor is in the early commercialization phase and is not yet profitable. For the fiscal year ended December 31, 2025, the Company incurred a net loss of $25,319 thousand on revenues of $292 thousand, as we continue to invest in clinical validation, regulatory approvals, and commercial infrastructure to support adoption of iCMR procedures. Operating expenses, primarily in research and development, sales and marketing, and general and administrative functions, reflect planned investments in pursuing U.S. regulatory approval, expanding our clinical support and sales teams, and building iCMR lab infrastructure in our target markets.

As of December 31, 2025, the Company had cash and cash equivalents of $19,502 thousand and marketable securities of $21,278 thousand. We have funded our operations to date primarily through the sale of our common stock and CDIs and through indebtedness. We expect to continue to incur operating losses for the foreseeable future as we execute our commercialization and clinical strategies. We anticipate that achieving profitability will require significant growth in iCMR procedure volume and geographic expansion, and the Company may require additional financing to support these objectives.

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**Key Factors Affecting Our Business** 

There are a number of factors that have impacted, and we believe will continue to impact, our results of operations and growth. These factors include:

●  ***Regulatory approvals/clearances.*** The sale of our products requires regulatory approval in each relevant jurisdiction. We are not assured of receiving future regulatory clearances for our existing products outside of the European Union or approvals for expanding indications or additional products currently in our product pipeline.

●  ***Market adoption.*** Our ability to generate revenue is dependent on hospitals and clinics with ablation centers in markets where we obtain the required regulatory approval establishing an iCMR lab and adopting our MRI-compatible technology for cardiac catheter ablation procedures. While we work collaboratively with leading MRI vendors to drive lab adoption, there can be no guarantee on the outcome.

●  ***Competition.*** We expect to generate the vast majority of our future revenue from the sale of our products used for MRI-guided cardiac catheter ablation procedures. The medical device industry is competitive, subject to rapid change, and significantly affected by new product introductions. There are a number of other products and devices on the market which are not traditionally MRI-compatible, but which are commonly used to perform conventional cardiac catheter ablation procedures. To this end, we will compete with larger companies who manufacture and sell ablation and diagnostic electrophysiology products. We must strive to be successful in light of our competitors' existing and future products and related pricing and their resources to successfully market to the physicians who use our products.

●  ***Sales and marketing resources.*** We currently have limited sales and marketing resources and will need to, among other things, expand our sales team. We will sell all our products to hospitals and clinics either directly or through distributors and will therefore need to commit increased resources to sales and marketing to execute our current growth strategy. The rate at which we grow our sales force and the speed at which newly hired salespeople or distributors become effective can impact our revenue growth or our costs incurred in anticipation of such growth.

While these factors may present significant opportunities for us, they also pose significant risks and challenges that we must address.

**Recent Developments**

On March 27, 2025, we completed a placement in which we issued 49,645,391 CDIs. We raised $42,828 thousand in net proceeds after deducting issuance costs. Proceeds from this placement supported our ongoing sales and marketing efforts, research and development activities, clinical trials, regulatory compliance, and associated offer costs. For details of these securities offerings, see Item 10. Recent Sales of Unregistered Securities.

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**Components of our Consolidated Results of Operations**

**Revenues**

We generate revenue from three primary sources: product sales, service revenue, and consulting revenue. Revenue is recognized when control of the product or service transfers to the customer. For product sales that contain a single performance obligation, revenue is recognized at a point in time when title to the goods and risk of loss transfers to the customer, which typically occurs upon shipment. For product sales that contain multiple performance obligations, such as equipment sales that include installation services, we allocate the transaction price to each performance obligation based on the estimated or observable standalone selling price and recognize revenue for each performance obligation when (or as) control is transferred to the customer and the performance obligation is satisfied. Service and consulting revenue is recognized over time as services are provided. Sales tax and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. Product sales include shipping and handling fees charged to customers. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold.

*Product Revenue*

Our product revenue is derived from sales of our cardiac ablation systems, associated consumables, and third-party equipment to hospitals, clinics, and other providers. Our primary products include the Vision-MR Ablation Catheter and Vision-MR Diagnostic Catheter, which are used in iCMR-guided ablation procedures. Customers select our products based on clinical efficacy, ease of use, pricing, and third-party reimbursement availability. We currently derive revenue from international markets, particularly the European Union, where we maintain a direct sales organization. In other international markets, including the Middle East, we distribute our products through exclusive distributors. We evaluate sales returns and allowances for variable consideration on a monthly basis and allowance for credit losses at each reporting period. We have historically not considered provisions for these items necessary.

*Service Revenue*

Our service revenue is derived from service agreements for maintenance on our Advantage-MR EP Recorder/Stimulator System and third-party equipment products provided to hospitals, clinics, and other providers. Service revenue is recognized over the contract period on a straight-line basis as customers benefit from the services throughout the service contract period.

*Consulting Revenue*

Our consulting revenue is derived from technology development work with research institutions and corporate partners evaluating MRI-guided cardiac ablation technologies. We recognize consulting revenue over time using the "as invoiced" practical expedient where appropriate.

**Costs and Expenses**

*Costs of Goods Sold* 

Cost of goods sold represents costs directly related to production and distribution of our products, including raw materials and components, manufacturing labor, quality assurance testing, product sterilization and packaging, shipping and handling costs, and manufacturing overhead. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold. Manufacturing overhead costs include the cost of material procurement, inventory control, and equipment and operations supervision. Cost of goods sold also includes depreciation expense for product tooling, production equipment, and equipment placed at customer sites as part of commercial sales agreements. Costs associated with any inventory write-downs resulting from quarterly physical inventory counts and product obsolescence are also included within cost of goods sold. Fluctuations in our cost of goods sold correspond with the fluctuations in these costs as well as sales volume.

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*Sales and Marketing*

Sales and marketing expenses consist primarily of sales and marketing personnel, field sales travel, trade show expenses, physician training and education programs, and consultant fees related to market development and commercialization strategy. We anticipate that our sales and marketing expenses will increase as we expand our direct sales force in the U.S. and EU, establish and support international distribution partnerships, and increase marketing investments to drive adoption of our MRI-guided ablation systems.

*Research and Development Expenses* 

Research and development include salaries for our research and development, regulatory, quality, and clinical personnel, clinical trial expenses, regulatory submissions, manufacturing process improvements, product development costs, enhancements to our currently commercialized products, and additional investments in our product development pipeline. We expense research and development expenses as incurred. We generally expect that research and development expenses will increase as we conduct our VISABL-AFL and VISABL-VT clinical trials, pursue additional regulatory approvals in the U.S. and international markets, advance next-generation product development, and optimize our manufacturing processes.

*General and Administrative Expenses* 

General and administrative expenses consist primarily of salaries for our executive, finance, accounting, and human resources personnel; share-based compensation; professional fees for accounting, audit, legal, and tax services; public company compliance costs; directors and officers liability insurance; and facility costs. We anticipate general and administrative expenses will increase as we hire additional personnel to support growth in our commercial and research and development teams, comply with SEC reporting requirements, and enhance our internal systems and controls infrastructure.

*Other Income (Expense)*

Other income (expense) consists primarily of changes in fair value of our financial instruments, including convertible notes (related party), option liabilities, and warrant liabilities that are remeasured to fair value at each reporting period, as well as interest income from our investments in cash, cash equivalents, and marketable securities. Additionally, other income and expense may include foreign currency exchange gains and losses resulting from remeasurements on our cash holdings, receivables, and liabilities denominated in foreign currencies such as Euros and Australian dollars, government grant income related to our research and development activities, and interest expense on financing agreements.

**Results of Operations**

The following discussion analyzes our results of operations for the year ended December 31, 2025, and compares those results to results for the year ended December 31, 2024. We suggest that you read the following information in conjunction with our audited consolidated financial statements and the related notes for the years ended December 31, 2025, and 2024, contained elsewhere in this Registration Statement.

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***Comparison of the Years Ended December 31, 2025, and 2024***

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|  | Year Ended December 31, | Year Ended December 31, | Change | Change |
| (in thousands) | 2025 | 2024 | Amount | % |
| Revenues: |  |  |  |  |
| Product revenue | $208 | $767 | $(559) | -73% |
| Service revenue | 84 | 76 | 8 | 11% |
| Consulting revenue |  | 116 | (116) | -100% |
| Total Revenues | 292 | 959 | (667) | -70% |
| Costs and Expenses: |  |  |  |  |
| Cost of goods sold | 2326 | 1884 | 442 | 23% |
| Sales and marketing | 4300 | 2272 | 2028 | 89% |
| Research and development | 11156 | 8180 | 2976 | 36% |
| General and administrative | 5301 | 4920 | 381 | 8% |
| Total Costs and Expenses | 23083 | 17256 | 5827 | 34% |
| Loss from Operations | (22791) | (16297) | (6494) | 40% |
| Total Other Income (Expense) | (2528) | (13396) | 10868 | -81% |
| Net Loss | $(25319) | $(29693) | $4374 | -15% |

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***Total Revenues***

Our total revenues are derived from product revenue, service revenue, and consulting revenue. We earned total revenues of $292 thousand for the year ended December 31, 2025, as compared to $959 thousand for the year ended December 31, 2024, a decrease of $667 thousand. The decrease in total revenues was primarily due to lower sales volumes of third-party equipment and consumable devices compared to the prior year and the absence of consulting revenue in 2025, partially offset by a slight increase in service revenue.

Product revenue decreased $559 thousand, or 73%, primarily due to lower sales volumes of third-party equipment and consumable devices. Equipment sales were lower due to timing of installations at customer sites in the European Union. Sales of consumable devices in 2025 were impacted by certain customer sites in Europe exclusively enrolling patients in our VISABL-AFL clinical trial. Procedures performed as part of this trial do not generate product revenue. In contrast, during 2024, many of these sites treated patients commercially, and the use of consumable devices in those procedures resulted in recognized product revenue. Service revenue increased $8 thousand, or 11%, primarily due to ongoing maintenance and support services provided to existing customers throughout the year. Consulting revenue decreased $116 thousand, or 100%, primarily due to consulting projects occurring in 2024, including ongoing product integration work with GE Healthcare and work completed with a research institution utilizing our MRI scanner, with no similar consulting engagements undertaken in 2025.

***Cost of Goods Sold***

Costs of goods sold during the year ended December 31, 2025, were $2,326 thousand, compared to $1,884 thousand during the year ended December 31, 2024, representing an increase of $442 thousand. The increase in cost of goods sold, despite a $667 thousand decrease in revenues, was primarily due to higher personnel-related costs and increased inventory reserve expense compared to 2024. The increase in personnel-related costs of $519 thousand, including salaries, bonuses, benefits, and other employee expenses, followed the expansion of our manufacturing and quality assurance teams. The inventory reserve increase of $339 thousand included a charge related to obsolescence of first-generation consumable devices following the mid-year product transition to second-generation consumable products. This was primarily offset by a decrease in inventory costs, due to lower volume of sales, of $485 thousand.

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***Sales and Marketing***

Sales and marketing expenses during the year ended December 31, 2025, were $4,300 thousand, compared to $2,272 thousand during the year ended December 31, 2024, representing an increase of $2,028 thousand. This increase was primarily attributed to higher personnel-related costs and travel expenses for field sales activities, as well as expanded marketing initiatives to support both European market growth and anticipated U.S. market entry following FDA approval. Personnel-related costs, including salaries, bonuses, benefits, and other employee expenses, increased $1,534 thousand, reflecting the expansion of our European sales team and the hiring of additional U.S. commercial staff to support commercial activities following FDA approval. Travel expenses, including airfare and lodging costs associated with field demonstrations and customer engagement, increased $189 thousand.

***Research and Development***

Research and development expenses during the year ended December 31, 2025, were $11,156 thousand, compared to $8,180 thousand during the year ended December 31, 2024, representing an increase of $2,976 thousand. This increase was primarily attributed to higher personnel-related costs, including salaries, bonuses, benefits, and other employee expenses, which increased $2,496 thousand as the Company expanded its research and development team to support multiple concurrent development programs and regulatory initiatives. Additionally, clinical expenses increased $289 thousand and regulatory expenses increased $196 thousand, reflecting expanded clinical trial activities, including costs associated with the VISABL-AFL trial, which commenced enrollment in 2024 and continued through 2025, and the VISABL-VT trial, which commenced enrollment in 2025. The increase also reflected continued product development efforts for next-generation products, including the second-generation consumable devices launched in mid-2025, as well as development activities for the MRI-guided endomyocardial biopsy devices and PFA research.

***General and Administrative***

General and administrative expenses during the year ended December 31, 2025, were $5,301 thousand, compared to $4,920 thousand during the year ended December 31, 2024, representing an increase of $381 thousand. This increase was primarily attributed to higher professional services, including audit and legal expenses, of $222 thousand, reflecting additional audit and compliance requirements associated with preparation for SEC registration and reporting obligations. The increase also reflected higher personnel-related costs, including salaries, bonuses, benefits, and other employee expenses, which increased $124 thousand as the Company recruited additional personnel to support its expanding administrative and compliance infrastructure in preparation for anticipated U.S. commercialization following expected FDA approval. Additionally, the Company incurred increased expenses of $161 thousand related to general office operations and corporate activities as a result of our growing workforce. This was primarily offset by a decrease in director and officer insurance of $237 thousand.

***Other Income (Expense)***

Total other income (expense) during the year ended December 31, 2025, was an expense of $2,528 thousand, compared to an expense of $13,396 thousand during the year ended December 31, 2024, representing a decrease in expense of $10,868 thousand. This decrease was primarily attributed to a significant reduction in the non-cash expense for fair value change on financial instruments, which decreased from $14,138 thousand in 2024 to $5,838 thousand in 2025, representing a favorable change of $8,300 thousand. Additionally, we benefited from favorable foreign currency exchange gains of $1,312 thousand related to foreign currency remeasurement on our cash held in Australian dollars, higher interest income of $923 thousand due to increased cash balances and investments in U.S. Treasury bills, and increased government grant income of $333 thousand.

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***Net loss***

As a result of the above factors, our net loss was $25,319 thousand for the year ended December 31, 2025, as compared to a net loss of $29,693 thousand for the year ended December 31, 2024. We expect to continue incurring net losses until such time as we obtain additional regulatory approvals for our MRI-compatible cardiac catheter ablation products, expand our commercialization, and generate sufficient revenue to offset our costs and expenses.

**Liquidity and Capital Resources**

We believe that we maintain adequate liquidity to allow us to meet our financial obligations as they become due for the next 12 months. We continuously assess our working capital needs, financing obligations, commitments, and future investment requirements. As of December 31, 2025, we had cash and cash equivalents of $19,502 thousand and marketable securities of $21,278 thousand. As of December 31, 2024, we had cash and cash equivalents of $15,708 thousand. A portion of our cash, cash equivalents, and marketable securities is denominated in foreign currencies. As of December 31, 2025 and 2024, cash and cash equivalents denominated in foreign currencies totaled $11,967 thousand and $1,302 thousand, respectively, representing 29% and 8% of our total cash, cash equivalents, and marketable securities for those periods, and are held primarily in Australian dollars as time deposits. These foreign currency denominated balances are remeasured into U.S. dollars at period-end exchange rates. Foreign currency exchange gains of $1,510 thousand and $198 thousand for the years ended December 31, 2025 and 2024, respectively, primarily reflect remeasurement effects on these foreign currency denominated cash balances, with the higher gain in 2025 largely driven by changes in the Australian dollar exchange rate on our Australian dollar-denominated cash. Consistent with this, the effect of foreign currency exchange rate changes on cash and cash equivalents reported in the consolidated statements of cash flows was $1,541 thousand for the year ended December 31, 2025, which includes $819 thousand of realized gains as of December 31, 2025.

Our future capital requirements will depend on several factors, including the pace of commercialization activities, our ability to generate revenue from product sales, and costs associated with ongoing research and development, clinical trials, and regulatory submissions. In the long term, we expect to fund these activities through a combination of existing cash resources, cash generated from future operations, and, if necessary, issuances of equity or debt financings.

We may require additional capital to fund our future business activities and execute our growth strategy. To the extent additional funds are necessary, we may seek additional funds through the issuance of equity securities, debt financing, or other strategic transactions. If we raise additional funds by issuing equity securities, the interests held in the Company by stockholders and CDI holders may be diluted. Debt financing, if available, would result in increased fixed payment obligations and may involve covenants restricting our ability to incur additional debt, limitations on our ability to acquire, sell, or license intellectual property rights, and other operating restrictions that could adversely impact our ability to conduct our business. We cannot guarantee the future availability of funds or that the funds will be available on terms that are favorable to us. If we are unable to obtain or maintain sufficient financial resources, our business, financial condition, and results of operations will be materially and adversely affected, including potentially requiring us to delay, limit, reduce, or terminate certain research and development activities or commercialization efforts.

***Working Capital***

As of December 31, 2025, we had working capital of $25,546 thousand, comprised of current assets of $42,917 thousand and current liabilities of $17,371 thousand. Current liabilities include the current portions of the Company's convertible notes (related party) and option liabilities, which are recorded at fair value, and their carrying amounts may differ significantly from the contractual principal and interest or other cash obligations associated with settling these instruments. See Note 7 – Convertible Notes with Warrants (related party) to our audited consolidated financial statements included elsewhere in this Registration Statement for disclosure of the contractual principal and interest outstanding on the Company's convertible notes (related party) as of December 31, 2025. As of December 31, 2024, we had working capital of $15,993 thousand, comprised of current assets of $18,349 thousand and current liabilities of $2,356 thousand.

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Current assets increased by $24,568 thousand as of December 31, 2025, compared to December 31, 2024, primarily driven by the sale of CDIs under the March 2025 placement, which generated net proceeds of $42,828 thousand, which as of December 31, 2025, resulted in an increase in cash and cash equivalents of $3,794 thousand and marketable securities of $21,278 thousand. Current liabilities increased by $15,015 thousand as of December 31, 2025, compared to December 31, 2024, primarily due to the reclassification of $11,746 thousand of convertible notes (related party) and $3,158 thousand of option liabilities to current.

***Cash Flows***

The following table summarizes our cash flows for the years ended December 31:

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|  | Year Ended December 31, | Year Ended December 31, | Change | Change |
| (in thousands) | 2025 | 2024 | Amount | % |
| Net cash used in operating activities | $(19081) | $(15574) | $(3507) | 23% |
| Net cash used in investing activities | (21712) | (75) | (21637) | 28849% |
| Net cash provided by financing activities | 43046 | 30334 | 12712 | 42% |
| Net change in cash | 2253 | 14685 | (12432) | -85% |
| Beginning cash balance | 15708 | 832 | 14876 | 1788% |
| Effect of exchange rate changes on cash | 1541 | 191 | 1350 | 707% |
| Ending cash balance | $19502 | $15708 | $3794 | 24% |

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*Operating Activities*

Net cash used in operating activities during the year ended December 31, 2025, was $19,081 thousand, compared to $15,574 thousand during the year ended December 31, 2024, representing an increase in cash used of $3,507 thousand. This increase was primarily attributed to higher loss from operations of $6,494 thousand in 2025 compared to 2024, partially offset by an increase in non-cash charges included in operating loss of $521 thousand in stock-based compensation expense and $339 thousand in inventory reserves. The remaining increase in cash used was further offset by increased interest income of $923 thousand and favorable changes in working capital, specifically a reduction in accounts payable outflows of $1,788 thousand compared to 2024.

*Investing Activities*

Net cash used in investing activities during the year ended December 31, 2025, was $21,712 thousand, compared to $75 thousand during the year ended December 31, 2024, representing an increase in cash used of $21,637 thousand. This increase was primarily attributed to purchases of marketable securities totaling $28,683 thousand, partially offset by proceeds of $7,406 thousand from the maturity of marketable securities during 2025. The Company held no marketable securities during 2024.

*Financing Activities*

Net cash provided by financing activities during the year ended December 31, 2025, was $43,046 thousand, compared to $30,334 thousand during the year ended December 31, 2024, representing an increase in cash provided of $12,712 thousand. This increase was primarily attributed to higher proceeds from the issuance of common stock and restricted stock, net of issuance costs, driven largely by our March 2025 equity placement. For details of these securities offerings, see Item 10. Recent Sales of Unregistered Securities.

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***Contractual Obligations and Commitments***

As of December 31, 2025, and December 31, 2024, we had $951 thousand and $1,135 thousand in operating lease obligations, respectively, for our corporate headquarters and warehouse space, located in Burnsville, Minnesota, and for our leased vehicles, of which $634 thousand and $876 thousand were included in operating lease liabilities, net of current portion as of December 31, 2025 and 2024, respectively. Operating cash outflows from operating leases during the year ended December 31, 2025 were $329 thousand, compared to $308 thousand during the year ended December 31, 2024. Future minimum lease payments total $1,055 thousand, with present value of lease liabilities of $951 thousand after discounting at a weighted-average discount rate of 5.8%.

We also have outstanding firm purchase commitments for raw materials inventory and prototype components used in research and development activities. As of December 31, 2025 and 2024, we had $219 thousand and $367 thousand, respectively, in outstanding firm purchase commitments. As of December 31, 2025, payment of the purchase commitments is expected to be made within one year.

For more information regarding our contractual commitments, see Note 6 – Commitments and Contingencies, in the audited consolidated financial statements for the years ended December 31, 2025, and 2024, included elsewhere in this Registration Statement.

***Securities Purchase Agreement***

On December 16, 2022, we entered into a Securities Purchase Agreement for the issuance of unsecured, unquoted convertible promissory notes in two tranches with a maximum aggregate amount of $5,000 thousand. The first tranche, issued on December 23, 2022, has a principal amount of $2,325 thousand, and the second tranche, issued on March 28, 2023, has a principal amount of $2,675 thousand. Both tranches bear interest at 10% per annum, compounded annually, with principal convertible into CDIs at $0.2691 per share and accrued interest convertible at $0.2563 per share. The convertible notes mature on the earlier of a change-in-control event or the four-year anniversary of each tranche closing date. The maximum number of CDIs to be issued upon conversion of the principal and interest is no more than 12,849,949 CDIs for the first tranche and 14,784,350 CDIs for the second tranche. The convertible notes are measured at fair value, with a total fair value of $25,014 thousand as of December 31, 2025, compared to $19,870 thousand as of December 31, 2024. The change in fair value of $5,145 thousand was recorded as a non-cash expense in change in fair value of convertible notes (related party) in our consolidated statement of operations for the year ended December 31, 2025. As of December 31, 2025, the principal amount outstanding was $2,325 thousand and $2,675 thousand, with accrued interest of $776 thousand and $808 thousand, for the first and second tranche, respectively. As of December 31, 2025, 11,669,009 CDIs and 13,094,172 CDIs would be issued for the first and second tranche, respectively, if the principal and accrued interest were converted.

On March 28, 2023 and December 23, 2022, pursuant to the Securities Purchase Agreement, the Company issued warrants exercisable for 1,043,699 and 907,141 CDIs, respectively, with an exercise price of $0.2563 per share. The warrants expire five years after the dates of issuance.

See Note 7 – Convertible Notes with Warrants (related party) to our audited consolidated financial statements for the years ended December 31, 2025, and 2024, included elsewhere in this Registration Statement for further information.

***Capital Commitments***

On July 6, 2023, we entered into a Capital Commitment Agreement with GEM Global Yield LLC SCS ("GGY") under which GGY agreed to provide us with up to $30 million Australian dollars through a Security Subscription Facility (the "Facility") over a 3-year term. We control the timing of drawdowns under the Facility and there is no minimum drawdown obligation. The subscription price of the CDIs to be issued to GGY for each drawdown is the higher of (i) 90% of the average closing bid price of our CDIs over the 15 consecutive trading days after we give the drawdown notice, subject to certain adjustments; or (ii) a fixed floor price nominated by us in the drawdown notice. The issue of CDIs to GGY is conditional on having sufficient placement capacity under ASX Listing Rules or obtaining requisite stockholder approval.

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Since issuance, we have drawn $444,992 Australian dollars on the Facility, and $29,555,078 Australian dollars is available as of December 31, 2025. Converted to U.S. dollars using the exchange rate of $1 Australian dollar to $0.67 U.S. dollar as of December 31, 2025, these amounts are $298 thousand and $19,781 thousand, respectively.

In connection with the Capital Commitment Agreement, we issued options to purchase 5,700,000 CDIs at $0.61 Australian dollars per CDI with a 3-year term from July 6, 2023. We received proceeds from the exercise of CDI options issued under our Capital Commitment Agreement (see "Recent Financings" below).

For more information regarding our capital commitments, see Note 9 – Capital Commitments, in the audited consolidated financial statements for the years ended December 31, 2025, and 2024, included elsewhere in this Registration Statement.

***Recent Financings***

On March 27, 2025, we completed a placement in which we issued 49,645,391 CDIs. We raised $42,827,577 in net proceeds after deducting issuance costs.

We also received net proceeds from the exercise of options as follows:

● 163,935 CDI options were exercised on February 6, 2025 for $61,419;

● 340,000 CDI options were exercised on March 25, 2025 for $130,842;

● 344,900 Class A common stock options were exercised on September 5, 2025 for $177,434;

● 11,250 Class A common stock options were exercised on September 12, 2025 for $3,488; and

● 144,526 CDI options were exercised on October 24, 2025 for $56,160. **  

In February and April 2024, we completed a capital raising consisting of an institutional placement, a U.S. placement, and an accelerated pro-rata non-renounceable entitlement offer (which consisted of institutional and retail components). On February 9, 2024, we issued 14,069,396 CDIs in the institutional placement (including the institutional component of the entitlement offer), and 3,766,666 shares of common stock in the U.S. placement. Under the retail component of the entitlement offer, we issued 1,419,069 CDIs on February 27, 2024, and 14,378,862 CDIs on April 5, 2024. We raised $9,210,618 in net proceeds after deducting issuance costs.

In July and September 2024, we completed a two-tranche placement. In the first tranche on July 25, 2024, we issued 49,514,682 CDIs. In the second tranche on September 5, 2024, we issued 17,550,154 CDIs and 242,857 shares of common stock. We raised $21,791,209 in net proceeds after deducting issuance costs.

Proceeds from the placements, entitlement offers, and option exercises have supported our ongoing sales and marketing efforts, research and development activities, clinical trials, regulatory compliance, and associated offer costs. For details of these securities offerings, see Item 10. Recent Sales of Unregistered Securities.

***Off-Balance Sheet Arrangements***

As of December 31, 2025, and 2024, we did not have any off-balance sheet arrangements, except as discussed under "*Contractual Obligations and Commitments*" above and in Note 6 – Commitments and Contingencies to our audited consolidated financial statements included elsewhere in this Registration Statement.

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**Critical Accounting Estimates** 

Our management's discussion and analysis of our financial condition and results of operations is based on our consolidated financial statements, which have been prepared in accordance with generally accepted accounting principles in the United States ("GAAP"). The preparation of these consolidated financial statements requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the consolidated financial statements, and the reported expenses incurred during the reporting periods. In accordance with GAAP, our estimates are based on our historical experience and various other factors that we believe are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities and recorded amounts of expenses that are not readily apparent from other sources. We evaluate our estimates and assumptions on an ongoing basis. Our actual results may differ from these estimates under different assumptions or conditions.

While our significant accounting policies are described in more detail in Note 2 to our audited consolidated financial statements appearing elsewhere in this Registration Statement, we believe the following accounting policies used in the preparation of our consolidated financial statements require the most significant judgments and estimates. Accordingly, these are the policies we believe are the most critical to aid in fully understanding and evaluating our consolidated financial statements.

***Stock-Based Compensation***

We measure stock-based compensation expense for equity awards granted to directors and employees based on the fair value of the award on the date of grant. The fair value of stock option awards is estimated using the Black-Scholes option-pricing model, which incorporates assumptions and estimates that require significant management judgment, including expected stock price volatility, expected term, risk-free interest rate, and expected dividend yield.

Expected volatility is estimated based on a combination of our own historical stock price volatility and the historical volatilities of traded shares from a selected publicly traded peer group, believed to be comparable after consideration of size, maturity, profitability, growth, risk, and return on investment. The selection of peer companies and the time periods used to calculate historical volatility require management judgment and can materially impact the fair value of options granted.

The expected term reflects our estimate of the period over which the stock options will remain outstanding before exercise or expiration. As we do not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term, the expected term of stock option awards granted has been determined using the simplified method, which is the average of the weighted-average vesting period and the contractual term. For awards with service-based vesting conditions, the weighted-average vesting period is calculated based on the service period. For awards with performance-based vesting conditions, the weighted-average vesting period is calculated based on our estimate of the period to achieve the performance milestone. The expected term is used to determine the appropriate maturity term for the risk-free interest rate input. The risk-free interest rate is based on the yield of constant maturity treasury bonds denominated in the same currency as the stock option exercise price with a remaining term equal to the expected term of the stock options at the grant date. We assume a dividend yield of zero, as we have not paid dividends and do not expect to pay dividends in the foreseeable future.

Stock-based compensation expense for awards with service-based vesting conditions is recognized on a straight-line basis over the requisite service period, which is typically the vesting period of the award. This approach results in a proportional allocation of the fair value of the award across the periods in which employees provide the required services.

For awards with performance-based vesting conditions, we recognize expense only when achievement of the performance condition is deemed probable. Management regularly assesses the probability of achieving performance conditions based on our progress toward regulatory approvals, sales milestones, or other operational metrics. Changes in management's assessment of the probability of achieving performance conditions can result in significant adjustments to previously recognized expense, including full reversal if the condition is no longer deemed probable.

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The assumptions used in our option pricing models have a significant impact on the amount of stock-based compensation expense we recognize. Changes in expected stock price volatility, expected term, risk-free interest rates, or the probability of achieving performance conditions could materially impact stock-based compensation expense recognized in future periods.

***Option Liabilities and Warrant Liabilities***

Certain options and warrants we have issued are classified as liabilities rather than equity due to the exercise price being denominated in a currency other than our functional currency. These liability-classified instruments are initially recorded at fair value and are subsequently remeasured at fair value at each reporting date, with changes in fair value recognized as changes in fair value of option liabilities and changes in fair value of warrant liabilities, respectively, in our consolidated statements of operations. This fair value remeasurement at each reporting date can result in significant volatility in our reported results from period to period.

We estimate the fair value of liability-classified options and warrants using the Black-Scholes option-pricing model. This valuation model incorporates contractual inputs, market-derived inputs, and estimated inputs. Contractual and market-derived inputs include the stock price, contractual exercise price, and the prevailing exchange rate, all of which are determined by contract or the market and do not require management judgment. Estimated inputs include the expected volatility, expected remaining term, risk-free interest rate, and expected dividend yield, which are subject to judgment and uncertainty.

Stock price is determined using the closing market price of our CDIs as quoted on the ASX, converted to U.S. dollars using the prevailing exchange rate on the measurement date. The exercise price, which is denominated in a currency other than our functional currency, is contractually fixed and converted to U.S. dollars using the prevailing exchange rate. Changes in the prevailing exchange rate directly affect the fair value of these instruments; a strengthening foreign currency increases the U.S. dollar equivalent of the exercise price and generally reduces the fair value of the liability, while a weakening foreign currency has the opposite effect.

Expected volatility is estimated based on a combination of our own historical stock price volatility and the historical volatilities of traded shares from a selected publicly traded peer group, believed to be comparable after consideration of size, maturity, profitability, growth, risk, and return on investment. The selection of peer companies and the time periods used to calculate historical volatility require management judgment and can materially impact the fair value of option liabilities and warrant liabilities.

The expected remaining term reflects our estimate of the period over which the warrants and options will remain outstanding before exercise or expiration. This estimate considers the contractual expiration date and our evaluation of historic expected lives from option and warrants. The expected remaining term is used to determine the appropriate maturity term for the risk-free interest rate input. As time passes and the expected remaining term decreases, the fair value of the warrant and option liabilities generally declines, independent of changes in stock price or volatility. The risk-free interest rate is based on the yield of constant maturity treasury bonds denominated in the same currency as the contractual exercise price with a remaining term equal to the expected remaining term at the measurement date. We assume a dividend yield of zero, as we have not paid dividends and do not expect to pay dividends in the foreseeable future.

The fair value of these instruments is highly sensitive to changes in our stock price, expected volatility, and the prevailing exchange rate. Increases in our stock price or expected volatility will generally result in an increase in the fair value of these liabilities, resulting in a non-cash loss. A strengthening of the foreign currency relative to the U.S. dollar will generally result in a decrease in the fair value of these liabilities, resulting in a non-cash gain. Conversely, decreases in stock price or expected volatility, or weakening of the foreign currency, will generally have the opposite effect. Because we remeasure these instruments at each reporting date, our results of operations may experience significant volatility unrelated to our operational performance.

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***Convertible Notes***

We account for our convertible promissory notes under the fair value option, recording them at fair value on the date of issuance and subsequently remeasuring them at each reporting date. Changes in the estimated fair value of the notes are recognized as a change in fair value of convertible notes (related party) in the consolidated statements of operations.

We measure the fair value of our convertible notes using the Monte Carlo simulation method. The Monte Carlo model uses a probabilistic approach to model various potential outcomes and determines estimated fair value based on the probability-weighted present value of expected future cash flows. This valuation model incorporates contractual inputs, market-derived inputs, and estimated inputs. Contractual and market-derived inputs include the stock price, conversion price, remaining contractual term, and the prevailing exchange rate. Estimated inputs include the expected volatility, risk-free interest rate selected based on remaining contractual term, expected dividend yield, credit spread, and the probability of a change in control event, which are subject to significant judgment and uncertainty.

Stock price is determined using the closing market price of our CDIs as quoted on the ASX, converted to U.S. dollars using the prevailing exchange rate on the measurement date. The conversion price is denominated in U.S. dollars and is contractually fixed. Because our stock price is quoted in Australian dollars on the ASX but converted to U.S. dollars for valuation purposes, changes in the prevailing exchange rate directly affect the fair value of the convertible notes. The remaining contractual term represents the simulation horizon for the Monte Carlo model, calculated as the time remaining until the four-year anniversary of each tranche closing date.

Expected volatility is estimated based our own historical stock price volatility calculated over a period consistent with the remaining contractual term of the convertible notes. The risk-free interest rate incorporated into the model is based on the yield of constant maturity treasury bonds denominated in the same currency as the convertible note conversion price with a remaining term equal to the remaining contractual term at the measurement date. We assume a dividend yield of zero, as we have not paid dividends and do not expect to pay dividends in the foreseeable future. The credit spread is determined based on our estimate of our credit rating, which is derived from our financial condition, and market yields for similar instruments issued by companies with comparable credit ratings.

Our convertible notes mature upon the earlier of a change in control event or the four-year anniversary of each tranche closing date. Upon a change in control event, the holder automatically receives a payment equal to the greater of 125% of the outstanding principal and accrued interest or the value the holder would have received had the notes been converted to CDIs immediately prior to the change in control. The likelihood and timing of a change in control event is inherently uncertain and requires us to make subjective assessments based on our strategic plans, market conditions, and general industry trends. We regularly evaluate these factors and update probability assessments accordingly. Changes in our assessment of the likelihood or timing of a change in control event can have a significant impact on the fair value of the convertible notes.

The fair value of the convertible notes is highly sensitive to changes in these key assumptions. Increases in our stock price, increases in expected volatility, or increases in the estimated probability of a change in control event will generally result in an increase in the fair value of the convertible note liability, resulting in a non-cash loss. Conversely, decreases in these inputs will generally result in a non-cash gain. Because we remeasure this instrument at each reporting date, our results of operations may experience significant volatility unrelated to our operational performance.

***Allowance for Expiring, Excess, and Obsolete Inventory***

Inventory is stated at the lower of cost or net realizable value, with cost determined on the first-in, first-out ("FIFO") method. We utilize significant estimates in determining the net realizable value of our inventory, including evaluating the likelihood of future product sales, timing of expiration of products compared to anticipated sales, and the potential impact of product design changes to existing inventory on hand, to establish allowances for expiring, excess, and obsolete inventories. The determination of net realizable value and the establishment of inventory reserves require significant management judgment and could materially impact our consolidated balance sheet and results of operations.

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We develop forecasts of future product sales based on current order patterns, discussions with customers and distributors, anticipated regulatory approvals that may expand our addressable market, and general economic conditions in our target markets. These forecasts are inherently uncertain and may be impacted by factors outside our control, including changes in physician acceptance of our products, healthcare reimbursement policies, and macroeconomic conditions. If actual product demand is lower than forecasted, we may need to increase reserves for excess inventory.

We continually monitor the shelf life and timing of expiration of products on hand and assess the likelihood that inventory will be sold before expiration based on current sales trends and sales forecasts. Inventory not expected to be sold before expiration is reserved.

We are engaged in ongoing research and development activities to improve our products and manufacturing processes. Changes in product specifications, the introduction of next-generation products, or modifications to manufacturing processes may render existing inventory obsolete or reduce its net realizable value. We continually evaluate our research and development pipeline and assess the potential impact of planned product changes on existing inventory.

The establishment of an allowance for expiring, excess, and obsolete inventory creates a new cost basis for the affected inventory. Future sales of inventory on hand will result in recognition of cost of sales based on initial inventory costs, net of reserves taken for expected realization values. Any increase in reserve for expiring, excess, and obsolete inventory will adversely impact our results of operations in the period the reserve is increased.

***Income Taxes***

The calculation of our provision for income taxes involves the use of estimates, assumptions, and judgments while considering current tax laws, our interpretation of current tax laws, and possible outcomes of future tax audits in multiple jurisdictions. We review our tax positions each reporting period and adjust the balances as new information becomes available.

We record income taxes under the liability method, recognizing deferred tax assets and liabilities for temporary differences between financial statement and tax bases of assets and liabilities. We recognize tax benefits from uncertain tax positions only when it is more likely than not that a tax position will be sustained on examination by taxing authorities based on the technical merits of the position. We maintain a valuation allowance to reduce deferred tax assets for uncertain tax positions and evaluate our tax positions regularly as facts and circumstances change. We have incurred operating losses since inception and currently maintain a valuation allowance against our net deferred tax assets because we lack sufficient evidence of future taxable income to support their realization. Significant management judgment is required in assessing whether it is more likely than not that deferred tax assets will be realized and in determining the appropriate level of the valuation allowance.

Our ability to use net operating loss and research and development tax credit carryforwards may be limited under Sections 382 and 383 of the Internal Revenue Code if we experience ownership changes exceeding 50% within a three-year period. Such ownership changes may restrict the amount of carryforwards available annually to offset future taxable income. We regularly analyze our equity transactions for potential ownership changes under Sections 382 and 383 and may need to adjust the realizability of our deferred tax assets based on any changes in our ownership structure. Future equity offerings or other changes in our ownership could trigger additional limitations on our tax attributes.

If we achieve sustained profitability, we may release all or a portion of our valuation allowance, which would decrease income tax expense. Conversely, changes in tax law, additional ownership changes, or unfavorable examination outcomes could require adjustments to our tax assets and effective tax rate.

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**Recent Accounting Pronouncements** 

See Note 1 – Summary of Significant Accounting Policies – Recent Accounting Pronouncements in our audited consolidated financial statements as of and for the years ended December 31, 2025, and 2024, included elsewhere in this Registration Statement.

**Quantitative and Qualitative Disclosures about Market Risk** 

We are a smaller reporting company, as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.

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| **Item 3.** | **Properties.** |

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We lease an office and manufacturing space, which also serves as our corporate headquarters, located at 400 Gateway Blvd in Burnsville, Minnesota, where we occupy approximately 15,115 square feet of space under a lease until April 30, 2027, at a base rent of $12,029 per month as of the filing of this Registration Statement, subject to scheduled annual increases over the term of the lease.

We also lease an office and warehouse space, located at 12259 Nicollet Ave. in Burnsville, Minnesota, where we occupy approximately 14,617 square feet of space under a lease until May 30, 2030, at a base rent of $13,336 per month as of the filing of this Registration Statement, subject to scheduled annual increases over the term of the lease.

These properties are utilized for administrative, manufacturing, and warehousing activities and are considered adequate for our current needs.

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| **Item 4.** | **Security Ownership of Certain Beneficial Owners and Management.** |

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The following table sets forth information known to the Company regarding beneficial ownership of our common stock, and common stock held as CDIs, as of March 16, 2026, by:

● each person, or group of affiliated persons, whom we know to beneficially own more than 5% of any class of our voting securities;

● each of our directors;

● each of our named executive officers; and

● all directors and executive officers as a group.

In accordance with the rules of the SEC, beneficial ownership is when a person possesses sole or shared voting or investment power over that security and includes the shares issuable pursuant to stock options and warrants that are exercisable within 60 days of March 16, 2026. Shares issuable pursuant to stock options and warrants are deemed outstanding for computing the percentage of the person holding such options but are not outstanding for computing the percentage of any other person.

We have based our calculation of the percentage of beneficial ownership on 320,947,028 shares of our common stock outstanding as of March 16, 2026.

Unless otherwise indicated, the address for each listed stockholder is c/o Imricor Medical Systems, Inc., 400 Gateway Blvd, Burnsville, MN 55337. To our knowledge, except as indicated in the footnotes to this table and pursuant to applicable community property laws, the persons named in the table have sole voting and investment power with respect to all shares of common stock.

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| | | |
|:---|:---|:---|
| **Name and Address of Beneficial Owner** | **Amount and Nature of Beneficial** <br> **Ownership** | **Percent of Class** |
| **Named Executive Officers and Directors:** |  |  |
| Steve Wedan¹ | 7205693 | 2.23% |
| Mark Tibbles² | 6555619 | 2.04% |
| Gregg Stenzel³ | 1640822 | 0.51% |
| Peter McGregor⁴ | 1161041 | 0.36% |
| Jonathon Gut⁵ | 572610 | 0.18% |
| Anita Messal⁶ | 430204 | 0.13% |
| Jeffrey Leighton⁷ | 245746 | 0.08% |
| Aldo Denti |  | 0.00% |
| All directors and executive officers as a group (8 persons)⁸ | 17811735 | 5.53% |
| **All Other Greater than 5% Owners:** |  |  |
| K.A.H.R. Foundation⁹ | 30603069 | 8.78% |
| Hart Capital Partners¹⁰ | 19378198 | 6.04% |
| Greencape Capital¹¹ | 18462138 | 5.75% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Consists of (a) 5,083,586 shares held by Mr. Wedan, of which 1,427,373 shares are held jointly with Cherri Wedan, and (b) 2,122,107 shares issuable pursuant to a stock option exercisable within 60 days after March 16, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Includes 526,608 shares issuable pursuant to a stock option exercisable within 60 days after March 16, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Includes 1,068,732 shares issuable pursuant to a stock option exercisable within 60 days after March 16, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Includes 246,906 shares issuable pursuant to a stock option exercisable within 60 days after March 16, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Includes 532,610 shares issuable pursuant to a stock option exercisable within 60 days after March 16, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Includes 38,340 shares issuable pursuant to a stock option exercisable within 60 days after March 16, 2026.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Consists of 245,746 shares held jointly with Nikki Joy Leighton.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Consists of 4,535,501 shares issuable pursuant to a stock option exercisable within 60 days after March 16, 2026.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Consists of (a) 2,951,661 shares held by K.A.H.R. Foundation, (b) 1,950,840 shares issuable upon exercise of certain warrants, and (c) 25,700,568 shares issuable upon exercise of convertible debt within 60 days after March 16, 2026. The address for K.A.H.R. Foundation is 4305 Trillium Way, Minnetrista, MN 55346.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) Consists of 19,378,198 shares of common stock beneficially owned by Public Trust Class 10 Nominees Ltd. Hart Capital Partners, as investment manager, has, or may be deemed to have, voting and investment power over the shares held through Public Trust Class 10 Nominees Ltd. The principal business address of Hart Capital Partners is Unit A3, Level 1, 1 North City Road, Rototuna Village, Hamilton 3214, New Zealand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11) Consists of 18,462,138 shares of common stock beneficially owned by, or that may be deemed to be beneficially owned through, Greencape Capital Pty Ltd ("Greencape Capital"). Greencape Capital, as investment manager, has, or may be deemed to have, voting and investment power over these shares. The principal business address of Greencape Capital is Level 2, 5 Martin Place, Sydney NSW 2000, Australia.

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| | |
|:---|:---|
| **Item 5.** | **Directors and Executive Officers.** |

---

The following table sets forth information regarding our executive officers and directors as of March 16, 2026:

---

| | | |
|:---|:---|:---|
| **Name** | **Age** | **Positions(s) with the Company** |
| **Executive Officers** |  |  |
| Steve Wedan | 58 | President, Chief Executive Officer, and Board Chair |
| Jonathon Gut | 40 | Vice President of Finance and Chief Financial Officer |
| Gregg Stenzel | 52 | Vice President of Research and Development¹ |
| **Non-Employee Directors** |  |  |
| Mark Tibbles | 59 | Deputy Chair and Lead Independent Director - Chairperson of the Nomination and Remuneration Committee |
| Peter McGregor | 59 | Non-executive Director - Chairperson of the Audit and Risk Committee |
| Anita Messal | 62 | Non-executive Director |
| Jeffrey Leighton | 63 | Non-independent Non-executive Director |
| Aldo Denti | 58 | Non-executive Director |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Effective January 1, 2026, Mr. Stenzel's title changed from Chief Operating Officer to Vice President of Research and Development. See the biographical section below.

Our Board of Directors ("Board") is divided into three classes (Class I, Class II, and Class III) with staggered three-year terms. Only one class of directors will be elected at each annual meeting of stockholders, with the other classes continuing for the remainder of their respective three-year terms. Each of our directors is serving a term which expires at the next annual meeting of stockholders at which his or her class is up for election until his or her successor is duly elected and qualified or until his or her earlier death or until such individual resigns or is removed. Our officers serve at the will of our Board.

In connection with the Securities Purchase Agreement dated December 16, 2022 between the Company and K.A.H.R. Foundation, K.A.H.R. Foundation has the right to nominate one individual (the "Lender Nominee") to our Board, subject to customary background checks, regulatory approvals, and compliance with ASX Listing Rules. If stockholders fail to elect the initial Lender Nominee, the Company shall increase the Board size by one seat and appoint the nominee selected by K.A.H.R. Foundation to fill the vacancy. For so long as the convertible notes remain outstanding, if the Lender Nominee resigns or otherwise ceases to serve as a director, K.A.H.R. Foundation has the right to designate a successor, and the Company shall promptly appoint such successor to the Board. K.A.H.R. Foundation's nomination and appointment rights automatically terminate when the convertible notes are no longer outstanding, at which time the serving Lender Nominee shall resign from the Board immediately upon the Company's written request.

Dr. Jeffrey Leighton was appointed as a Class III director effective July 2024 pursuant to these nomination rights granted to the K.A.H.R. Foundation.

See Note 7 – Convertible Notes with Warrants (related party) to our audited consolidated financial statements included elsewhere in this Registration Statement for further information.

Except as described above, there are no arrangements or understandings with major stockholders, customers, suppliers, or others pursuant to which any of our executive management or our directors were selected.

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***Executive Officers and Directors***

*Steve Wedan*

Mr. Wedan co-founded the Company in 2006 and has served as CEO since that time. Mr. Wedan is responsible for the overall management and strategic direction of the Company. Mr. Wedan has over 30 years of experience in the medical device industry including design engineering of MRI and ultrasound systems for GE Healthcare, as well as Vice President and Chief Technology Officer for Applied Biometrics Inc. Immediately prior to co-founding Imricor, Mr. Wedan founded and operated a technical consulting company, Wedan Technologies Inc., from 2000-2006. Mr. Wedan is a member of various international standards committees in the fields of MRI safety and the compatibility of implanted and interventional products in MRI. Mr. Wedan currently serves on the Board of Directors of Medical Device Research Forum, Inc. and Water Rescue Innovations, Inc., as well as the Advisory Board of Poiesis Medical, LLC. Mr. Wedan holds a Bachelor of Science in Electrical Engineering from Michigan Technological University (summa cum laude), and a Master of Science in Electrical Engineering from Marquette University.

We believe Mr. Wedan is qualified to serve as a member of our Board of Directors because of his leadership experience in various roles, extensive knowledge of our business and technology as our co-founder and Chief Executive Officer, and expertise in MRI systems and device compatibility standards.

*Gregg Stenzel*

Mr. Stenzel commenced his role as Vice President of Research and Development in January 2026. From January 2021 through December 2025, he served as our Chief Operating Officer and was responsible for leading the execution of Imricor's strategic plan across most functional areas of the business. Prior to January 2021, Mr. Stenzel served as Imricor's Vice President of Operations with responsibility for the Company's operations and the development of manufacturing strategies, including personnel, facilities, and outsourcing. He has over 25 years of medical device experience with deep knowledge in new product development, supply chain management, quality and regulatory systems, and customer support. Prior to joining Imricor in 2007, Mr. Stenzel was the Manager of Instrument Technical Operations at Beckman Coulter, Inc. a leading manufacturer of In Vitro Diagnostic Systems. Mr. Stenzel holds a Bachelor of Science in Electrical Engineering from the University of Wisconsin - Madison and a Master of Business Administration from the University of Minnesota - Carlson School of Management.

*Jonathon Gut*

Mr. Gut has served as the Company's Vice President of Finance and Chief Financial Officer since July 2022 and has been employed by Imricor in finance leadership roles since August 2020, including as Controller and Director of Finance from August 2020 to July 2022. Mr. Gut has over 15 years of accounting and finance experience, the last 13 of them in the medical device industry, having previously worked for both private and publicly owned companies, including Galil Medical and Boston Scientific. Mr. Gut holds a Bachelor of Accounting from the University of Minnesota- Duluth and a Master of Accountancy from the University of Minnesota- Twin Cities. He is a licensed Certified Public Accountant.

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*Mark Tibbles*

Mr. Tibbles joined the Board in September 2014. Mr. Tibbles is an entrepreneur, business owner, company director and active venture investor in and advisor to technology, life science, and medical device companies. Mr. Tibbles is currently a Co-Founder and Director of PERMnet, Inc., a policy, evidence, and reasoning-driven multinetwork artificial intelligence information system for healthcare administration, focused on improving utilization management of health insurance preauthorizations; PERMnet incorporated in October 2024. Mr. Tibbles has also served as a managing member of STEM Fuse, LLC, one of the largest providers of digital K-12 STEM curriculum in the U.S., since December 2016; a Director of FamGenix, Inc., a leading provider of genetic risk assessment tools that help identify patients at hereditary risk of disease, since July 2023; and the Managing Director of Strategic Stage Ventures, LLC, a strategic investment firm that partners with visionary entrepreneurs driving innovation in Life Sciences, Medical Devices and Healthcare IT and AI companies, since March 2013. Prior to his current roles, Mr. Tibbles was a Board member of CorVent Medical, Inc., a medical device company focused on improving medical ventilation systems, from July 2023 to May 2025; a Board member of Operandi, Inc., from August 2022 to October 2023; a Board member of OMEDZA.com, Inc., from October 2019 to September 2024; a Board member of the Nerdery, LLC, from January 2021 to December 2022; the Chief Strategy Office and Executive Committee Member of Poiesis Medical LLC, a medical device company specializing in urinary care solutions, from April 2021 to June 2023 then transitioned to an Advisory Board member; an owner and member of Intuitive Technology Group, an IT staffing and consulting company, from January 2013 until August 2017; and a President and founder of PRC Consulting, Inc., a company specializing in the management and implementation of IT projects for Fortune 1000 Companies, from 1998 until 2013. Mr. Tibbles holds a Bachelor of Arts from Oral Roberts University.

We believe Mr. Tibbles is qualified to serve as a member of our Board of Directors because of his experience building and leading medical device and life science companies, his venture investment expertise, and his board service with other medical device companies.

*Peter McGregor*

Mr. McGregor joined the Board in May 2019. Mr. McGregor has over 30 years of experience in senior finance and management roles, including having been a Partner in the investment banking firm of Goldman Sachs JBWere from January 1999 to January 2005 and a Managing Director in the Institutional Banking & Markets division of Commonwealth Bank of Australia from June 2012 to April 2016. He is also a former Chief Financial Officer of Asciano Limited (ASX: AIO), an Australian freight logistics and transport company, from January 2008 to May 2011 and Chief Operating Officer of ASX listed Australian Infrastructure Fund Limited (ASX: AIX), a transport infrastructure fund, from February 2005 to January 2008. Mr. McGregor is an experienced company director who has served as a Director of Treasury Corporation of Victoria, the central financing authority for the State of Victoria, since May 2023; and a Director of Infrastructure Specialist Asset Management Pty Ltd, an Australian-based investment and asset management company, since April 2025. He previously served as a director of Pivotal Systems Corporation (ASX: PVS), from August 2018 to April 2023; and TRUE Infrastructure Management Pty Ltd, from June 2020 to November 2023. Mr. McGregor holds a Bachelor of Commerce from the University of Melbourne, is a member of the Australian Institute of Company Directors and a Fellow of the Financial Services Institute of Australasia.

We believe Mr. McGregor is qualified to serve as a member of our Board of Directors because of his leadership experience in investment banking and corporate finance, his service as chief financial officer of a publicly traded company, and his extensive board experience.

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*Anita Messal*

Ms. Messal joined the Board in March 2021. Ms. Messal is an executive with 40 years of demonstrated accomplishments in the healthcare sector and has served on the Board of Directors of Ideon, a healthcare and insurance data services company, since August 2023. She has served as Executive Chair since September 2023. She is an Advisor to Poiesis Medical, a medical device company specializing in urinary care solutions. Ms. Messal previously served as the Chief Integration Officer at AccentCare, a U.S. based national company in home health, hospice, and personal care services, from July 2020 to February 2023 and as President and Chief Operating Officer at PlanSource, a technology company that offers software solutions for employee benefits, from March 2013 to January 2020. Her experience also includes over 10 years in leadership roles with Optum, a UnitedHealth Group company. She holds a Bachelor of Arts from the University of Minnesota and a Master of Business Administration from the University of Minnesota - Carlson School of Management.

We believe Ms. Messal is qualified to serve as a member of our Board of Directors because of her extensive healthcare industry experience, her leadership in operations, technology, and strategic business development, and her board experience.

*Jeffrey Leighton*

Dr. Leighton joined the Board in July 2024. Dr. Leighton is a cognitive neuroscientist with extensive experience in both academic and corporate settings. He holds a PhD in Cognitive Psychology from Grand Canyon University and has a robust research, teaching, and leadership background. Beyond his academic achievements, Dr. Leighton has served as Chief Financial Officer at NDS Wellness, a regional provider of mobile neuroimaging and wellness centers, from September 2010 to June 2022. Dr. Leighton has held key corporate governance and advisory roles, including serving as an Institutional Review Board (IRB) member at Quiet Minds Foundation, a non-profit neuromodulatory research center, since January 2023.

We believe Dr. Leighton is qualified to serve as a member of our Board of Directors because of his neuroscience and healthcare industry expertise, his financial and operational leadership as chief financial officer, and his experience in corporate governance and regulatory oversight through his IRB service.

*Aldo Denti*

Aldo Denti joined the Board in November 2025. Mr. Denti has over 30 years of global experience in the medical device industry and has served as the Chief Commercial Officer for Dentsply Sirona, the world's largest and most diversified dental equipment company, since October 2025. Prior to this role, from January 2019 to October 2025, he was the Company Group Chairman of Global Orthopaedics for Johnson & Johnson MedTech, an orthopaedic devices division within one of the world's largest medical device companies. Since becoming Company Group Chairman in 2019, Mr. Denti grew the business to $9 billion in annual sales, making it the world's largest orthopaedics company. Prior to his role in orthopaedics, Mr. Denti served as Global Leader at Johnson & Johnson Vision, a contact lens and ophthalmology products division, from May 2014 to December 2018. Mr. Denti's other experiences include various sales and marketing roles with companies such as DePuy, Medtronic, and Pfizer. Mr. Denti holds a Bachelor of Arts, with Specialized Honors, from York University.

We believe Mr. Denti is qualified to serve as a member of our Board of Directors because of his extensive business and leadership experience with the medical device industry, particularly his executive leadership scaling the orthopaedics division of Johnson & Johnson MedTech.

**Family Relationships**

There are no family relationships among any of our current executive officers or directors.

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**Executive Officers**

Each of our executive officers serves at the discretion of our Board of Directors and holds office until their resignation or removal.

**Board of Directors**

Our Board of Directors currently consists of six members. The current members of our Board of Directors were elected pursuant to our current Amended and Restated Certificate of Incorporation.

Our Amended and Restated Certificate of Incorporation provides that our Board of Directors is divided into three classes (Class I, Class II, and Class III) with staggered three-year terms. Only one class of directors will be elected at each annual meeting of stockholders, with the other classes continuing for the remainder of their respective three-year terms. Our directors are divided among the three classes as follows:

● the Class I directors are Mr. Tibbles and Mr. Denti, and their terms will expire at the annual meeting of stockholders to be held in 2026;

● the Class II director is Ms. Messal, and her term will expire at the annual meeting of stockholders to be held in 2027; and

● the Class III directors are Mr. Wedan, Mr. McGregor, and Dr. Leighton, and their terms will expire at the annual meeting of stockholders to be held in 2028. Under ASX Listing Rule 14.4, Mr. Wedan (as managing director) is not required to stand for re-election every three years.

At each annual meeting of stockholders, upon the expiration of the term of a class of directors, the successor to each such director in the class will be elected to serve from the time of election and qualification until the third annual meeting following his or her election and until his or her successor is duly elected and qualified, in accordance with our Amended and Restated Certificate of Incorporation.

This classification of our Board of Directors may have the effect of delaying or preventing changes in control of our company.

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| | |
|:---|:---|
| **Item 6.** | **Executive Compensation.** |

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This section discusses the material components of the executive compensation program for our named executive officers ("NEOs"). In fiscal year 2025, our NEOs and their positions were as follows:

● Steve Wedan, President, Chief Executive Officer, and Board Chair;

● Gregg Stenzel, Chief Operating Officer; and

● Jonathon Gut, Vice President of Finance and Chief Financial Officer.

The titles set forth above reflect the positions in which each NEO served during fiscal year 2025 for purposes of the compensation reported below.

**Summary Compensation Table** 

This discussion contains forward looking statements that are based on our current plans, considerations, expectations, and determinations regarding future compensation programs. Actual compensation programs that we adopt may differ materially from currently planned programs as summarized in this discussion. As an "emerging growth company" as defined in the JOBS Act, we are not required to include a Compensation Discussion and Analysis section and have elected to comply with the scaled disclosure requirements applicable to emerging growth companies.

The following table sets forth information concerning the compensation awarded to or earned by our NEOs during the fiscal year ended December 31, 2025:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  |  | **Salary** | **Option awards** | **Non-equity** <br> **incentive plan** <br> **compensation** | **All other compensation** | **Total** |
| **Name and principal position** | **Year** | **($)** | **($)¹** | **($)²** | **($)³** | **($)** |
| Steve Wedan<br> *President, Chief Executive Officer, and Board Chair* | 2025 | 479000 | 91901 <sup>4</sup> | 136515 | 13306 | 720722 |
| Gregg Stenzel<br> *Chief Operating Officer* <sup>7</sup> | 2025 | 315000 | 57743 <sup>5</sup> | 71820 | 14201 | 458764 |
| Jonathon Gut<br> *Vice President of Finance and Chief Financial Officer* | 2025 | 280000 | 47900 <sup>6</sup> | 47880 | 13469 | 389249 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Amounts do not reflect dollar amounts actually received by our NEOs and instead, in accordance with SEC rules, represent the aggregate grant date fair values of option awards granted in 2025 as computed in accordance with Financial Accounting Standards Board ("FASB") Accounting Standard Codification ("ASC") Topic 718. See Note 10 – Stockholders' Equity to our audited consolidated financial statements included elsewhere in this Registration Statement for a discussion of the assumptions used in the calculation of these amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Amounts disclosed under the "Non-Equity Incentive Plan Compensation" column represent the portion of the annual performance-based bonuses earned pursuant to objective performance criteria established as part of our annual performance-based bonus plan for the indicated year for the achievement of pre-established corporate and other goals. For further discussion on performance-based bonuses paid for 2025, see the sub-section entitled "2025 Annual Performance-Based Bonuses."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Amounts disclosed under the "All Other Compensation" column include company contributions under our 401(k) plan of $12,919, $13,993, and $13,379 for Mr. Wedan, Mr. Stenzel, and Mr. Gut, respectively.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) The option awards reported in the table represent the grant date fair value computed in accordance with FASB ASC Topic 718 based on the probable outcome of performance conditions. Assuming the highest level of performance conditions is achieved, the grant date fair value of the option awards during 2025 would be $777,524.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) The option awards reported in the table represent the grant date fair value computed in accordance with FASB ASC Topic 718 based on the probable outcome of performance conditions. Assuming the highest level of performance conditions is achieved, the grant date fair value of the option awards during 2025 would be $643,576.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) The option awards reported in the table represent the grant date fair value computed in accordance with FASB ASC Topic 718 based on the probable outcome of performance conditions. Assuming the highest level of performance conditions is achieved, the grant date fair value of the option awards during 2025 would be $604,978.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Effective January 1, 2026, Mr. Stenzel's title changed from Chief Operating Officer to Vice President of Research and Development.

**Narrative to Summary Compensation Table** 

***Annual Base Salary***

Our named executive officers receive a base salary to compensate them for services rendered to us. The base salary payable to each named executive officer is intended to provide a fixed component of compensation reflecting the executive's skill set, experience, role, and responsibilities. The base salary of our named executive officers is generally determined and approved by our Board of Directors in connection with the commencement of employment of the named executive officer and may be adjusted from time to time thereafter as the Board of Directors determines appropriate. The 2025 annual base salary rates for our named executive officers were as follows: (1) for Mr. Wedan, $479,000; (2) for Mr. Stenzel, $315,000; and (3) for Mr. Gut, $280,000.

***2025 Annual Performance-Based Bonuses***

We generally provide each of our named executive officers with an opportunity to receive an annual cash incentive payment under our short-term incentive ("STI") plan, which is a component of our annual remuneration plan. The amount of any cash incentive payable under the STI plan is linked to annual performance targets determined by the Board of Directors. These targets are established to promote and reward outstanding performance, beyond what is expected in the ordinary course of business. The target STI opportunity is set as a percentage of fixed remuneration. For 2025, the maximum target opportunity was 50% for the President and CEO, Steve Wedan, 40% for the COO, Gregg Stenzel, and 30% for the CFO, Jonathon Gut. Furthermore, the 2025 annual performance targets determined by the Board of Directors were weighted as follows: product pipeline and regulatory approvals (50%), financial metrics (25%), and commercialization and strategic initiatives (25%).

The annual cash bonuses awarded to each named executive officer for 2025 performance are set forth above in the Summary Compensation Table in the column titled "Non-Equity Incentive Plan Compensation." If, in our board's discretion, an amount is paid over and above the amounts earned by meeting the performance measures in the STI Plan, such excess amount (if any) will be set forth in the Summary Compensation Table in the column titled "Bonus."

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For 2025, the target incentive amounts and actual payments for our named executive officers under our 2025 Remuneration Plan, as determined by the Board of Directors based on its assessment of individual and company achievements throughout the year, were as follows:

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| | | |
|:---|:---|:---|
|  | **Target Award** | **Actual Award** |
| **Name Executive Officer** | **($)** | **($)** |
| Steve Wedan | 239500 | 136515 |
| Gregg Stenzel | 126000 | 71820 |
| Jonathon Gut | 84000 | 47880 |

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***Equity-Based Incentive Awards***

We generally provide each of our named executive officers with an opportunity to receive an annual equity-based incentive award under our long-term incentive ("LTI") plan, which is a component of our annual remuneration plan. Our LTI plan is designed to align the interests of management with its stockholders, while maintaining a total remuneration opportunity that enables the Company to retain, attract, and motivate qualified and high-performing executives. Our Board of Directors is responsible for approving equity grants. Additional grants may occur periodically to specifically align the interests of management with the interests of our stockholders. Vesting of equity awards is generally tied to continuous service with us and serves as an additional retention measure.

We currently grant equity-based incentive awards pursuant to our 2019 Equity Incentive Plan (the "2019 Plan"). As of March 16, 2026, all outstanding stock options held by our named executive officers were granted under the 2019 Plan. The terms of our 2019 Plan are described below under "Equity Incentive Plans."

In May 2025, our Board of Directors granted to each of our named executive officers stock options with a grant date fair value equaling 50% of their fiscal year 2025 base salary plus STI paid in 2025. Mr. Wedan, Mr. Stenzel, and Mr. Gut received stock options to purchase 455,893, 286,455, and 237,617 shares of our common stock, respectively. The performance vesting conditions for these options were weighted as follows:

● 50% when the first U.S. customer site orders product following FDA approval;

● 25% upon the submission for regulatory approval of our first non-EP product anywhere in the world; and

● 25% upon FDA approval of NorthStar.

The actual grant date fair values of these awards may vary from the planned allocation as a percentage of annual base salary plus STI paid due to fluctuations in our stock price and, where applicable, currency translation adjustments occurring between the initial fair value measurement, stockholder approval at the Annual General Meeting, and the grant date. Additionally, in May 2025, our Board of Directors granted Mr. Wedan, Mr. Stenzel, and Mr. Gut additional options to purchase 500,000 shares of our common stock each. These additional options will vest on the last day of the second consecutive fiscal quarter during which the Company generates positive cash flow from operations. Vesting of all options granted in 2025 is subject to each named executive officer's continued service through each applicable vesting date.

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**Outstanding Equity Awards as of December 31, 2025**

The following table sets forth information regarding outstanding stock options and stock awards held by our named executive officers as of December 31, 2025:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  |  | **Option Awards**¹ | **Option Awards**¹ | **Option Awards**¹ | **Option Awards**¹ |
| **Name** | **Vesting Start**<br> **Date** | **Number of Securities Underlying** <br> **Unexercised Options (#)** <br> **Exercisable** | **Number of Securities Underlying** <br> **Unexercised Options (#)** <br> **Unexercisable** | **Option**<br> **Exercise Price**<br> **($)²** | **Option** <br> **Expiration**<br> **Date** |
| Steve Wedan | 3/15/2019 | 1060800 |  | 0.52 | 3/15/2029 |
|  | 8/30/2019 | 200000 |  | 0.98 | 8/30/2029 |
|  | 5/13/2020 | 289594 | 115837<sup>3</sup> | 0.89 | 5/13/2030 |
|  | 5/7/2021 |  | 304254<sup>4</sup> | 1.57 | 5/7/2031 |
|  | 5/9/2022 |  | 1098627<sup>5</sup> | 0.28 | 5/9/2032 |
|  | 7/26/2022 |  | 174264<sup>5</sup> | 0.21 | 7/26/2032 |
|  | 5/12/2023 |  | 1426949<sup>6</sup> | 0.19 | 5/12/2033 |
|  | 5/15/2024 |  | 2113342<sup>7</sup> | 0.30 | 5/15/2034 |
|  | 5/14/2025 |  | 955893<sup>8</sup> | 1.07 | 5/14/2035 |
| Gregg Stenzel | 3/15/2019 | 628600 |  | 0.52 | 3/15/2029 |
|  | 1/6/2020 | 47619 | 19048<sup>9</sup> | 0.80 | 1/6/2030 |
|  | 5/13/2020 | 52813 | 21125<sup>3</sup> | 0.89 | 5/13/2030 |
|  | 5/7/2021 |  | 161372<sup>4</sup> | 1.57 | 5/7/2031 |
|  | 5/9/2022 |  | 793671<sup>5</sup> | 0.28 | 5/9/2032 |
|  | 5/12/2023 |  | 966851<sup>6</sup> | 0.19 | 5/12/2033 |
|  | 5/15/2024 |  | 1146413<sup>7</sup> | 0.30 | 5/15/2034 |
|  | 5/14/2025 |  | 786445<sup>8</sup> | 1.07 | 5/14/2035 |
| Jonathon Gut | 10/7/2020 | 100000 |  | 1.96 | 10/7/2030 |
|  | 5/5/2021 | 25300 |  | 1.55 | 5/5/2031 |
|  | 2/10/2022 | 135000 | 45000<sup>10</sup> | 0.65 | 2/10/2032 |
|  | 5/12/2023 |  | 796117<sup>6</sup> | 0.19 | 5/12/2033 |
|  | 5/15/2024 |  | 1032265<sup>7</sup> | 0.30 | 5/15/2034 |
|  | 5/14/2025 |  | 737617<sup>8</sup> | 1.07 | 5/14/2035 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Each of the outstanding equity awards was granted pursuant to our 2019 Plan (as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The exercise price of each option is the fair market value of our common stock on the date of grant, as determined by our Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Of the 136,962 unexercised options unexercisable, 12,403 shall vest upon the company achieving approval of a company's medical device by the Australian Therapeutic Goods Administration on or prior to the expiration of such option; 12,403 shall vest upon the company achieving approval of any of the company's medical devices by the United States Food and Drug Administration on or prior to the expiration of such option; and 112,156 shall vest upon the number of customer sites (labs) performing cardiac ablation procedures using the Company's products equals or exceeds 50 customer sites on or prior to the expiration of such option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) Each option grant shall be subject to the following vesting schedule and shall become exercisable: with respect to 50% of the number of shares granted, such percentage shall vest upon the first sale of the Company's products within the United States of America on or prior to the expiration of such option; with respect to 25% of the number of shares granted, such percentage shall vest upon the first sale of the Company's products within Australia on or prior to the expiration of such option; and with respect to 25% of the number of shares granted, such percentage shall vest upon the first sale of the Company's VT Ablation product anywhere in the world on or prior to the expiration of such option.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Each option grant shall be subject to the following vesting schedule and shall become exercisable: with respect to 20% of the number of shares granted, such percentage shall vest upon the opening of operations of three (3) clinical sites in Australia after the date hereof on or prior to the expiration of such option; with respect to 30% of the number of shares granted, such percentage shall vest upon the opening of operations of five (5) clinical sites in the United States after the date hereof on or prior to the expiration of such option; and with respect to 50% of the number of shares granted, such percentage shall vest upon the Company achieving profitable half-year results.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Each option grant shall be subject to the following vesting schedule and shall become exercisable: with respect to 35% of the number of shares granted, such percentage shall vest upon the opening of operations of three (3) clinical sites in Australia after the date hereof on or prior to the expiration of such option; with respect to 35% of the number of shares granted, such percentage shall vest upon the opening of operations of five (5) clinical sites in the United States after the date hereof on or prior to the expiration of such option; and with respect to 30% of the number of shares granted, such percentage shall vest upon the first sale of the Company's VT Ablation product anywhere in the world on or prior to the expiration of such option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) Mr. Wedan, Mr. Stenzel, and Mr. Gut received stock options to purchase 1,113,342, 646,413, and 532,265 shares of our common stock, respectively. The performance vesting conditions for these options were weighted as follows: with respect to 30% of the number of shares granted, such percentage shall vest upon the first sale of the Company's products into a dedicated iCMR lab in the Middle East after the date hereof on or prior to the expiration of such option; with respect to 40% of the number of shares granted, such percentage shall vest upon the approval or clearance of at least one capital or consumable product of the Company by the U.S. Food and Drug Administration for sale within the United States after the date hereof on or prior to the expiration of such option; and with respect to 30% of the number of shares granted, such percentage shall vest upon the first sale of the Company's consumable products in the United States on or prior to the expiration of such option. Additionally, Mr. Wedan, Mr. Stenzel, and Mr. Gut received additional options to purchase 1,000,000, 500,000, and 500,000 shares of our common stock, respectively. These additional options shall vest on the last day of the fiscal quarter during which the Company generates positive cash flow from operations, on or prior to the expiration of such option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) Mr. Wedan, Mr. Stenzel, and Mr. Gut received stock options to purchase 455,893, 286,445, and 237,617 shares of our common stock, respectively. The performance vesting conditions for these options were weighted as follows: with respect to 50% of the number of shares granted, such percentage shall vest upon the first order of the Company's products in the United States following U.S. Food and Drug Administration approval after the date hereof on or prior to the expiration of such option; with respect to 25% of the number of shares granted, such percentage shall vest upon the approval or clearance of the NorthStar product of the Company by the U.S. Food and Drug Administration for sale within the United States after the date hereof on or prior to the expiration of such option; and with respect to 25% of the number of shares granted, such percentage shall vest upon the first regulatory submission anywhere in the world of a Non-EP product of the Company after the date hereof on or prior to the expiration of such option. Additionally, Mr. Wedan, Mr. Stenzel, and Mr. Gut received additional options to purchase 500,000 shares of our common stock each. These additional options shall vest on the last day of the second consecutive fiscal quarter during which the Company generates positive cash flow from operations, on or prior to the expiration of such option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9) Each option grant shall be subject to the following vesting schedule and shall become exercisable: with respect to 50% of the number of shares granted, a pro-rata portion of such percentage shall vest on each yearly anniversary of the Grant Date over four years; with respect to 10% of the number of shares granted, such percentage shall vest upon the Company achieving approval of a Company's medical device by the Australian Therapeutic Goods Administration; and with respect to 10% of the number of shares granted, such percentage shall vest upon the Company achieving approval of a Company's medical device by the United States Food and Drug Administration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10) This option vests over four years from the vesting commencement date in 4 equal annual installments, subject to continued service through each such vesting date.

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**Employment Agreements with Our Named Executive Officers**

***Steve Wedan***

We are party to an amended and restated employment agreement dated as of April 11, 2019, with Mr. Wedan, our President, Chief Executive Officer, and Board Chair. The amended and restated employment agreement does not have a specific term and provides that Mr. Wedan is an at-will employee.

As approved by our Board of Directors in October 2025, Mr. Wedan's current annual base salary is $595,000 and his current annual target under our cash-based STI plan is 60% of his annual base salary. Subject to stockholder and Board approval, his current annual stock option grant under our equity-based LTI plan will have a grant date fair value equal to 60% of his fiscal year 2026 base salary plus STI paid in 2026. To be eligible to receive any annual cash-based STI compensation, Mr. Wedan must be actively employed by us on the payment date and in compliance with his obligations under his employment agreement.

The amended and restated employment agreement can be terminated by us for cause, by us without cause or due to disability, by Mr. Wedan's 30-day written notice of resignation, or upon the death of Mr. Wedan.

If we terminate Mr. Wedan's employment for cause, he will be entitled only to (i) any earned and unpaid salary accrued through the date of termination and (ii) any vested benefits under our employee benefit plans.

If we terminate Mr. Wedan's employment without cause or due to disability, and Mr. Wedan executes a general release of claims that becomes effective within 60 days of termination, he will be entitled to (i) twelve months of his then-current base salary, payable over twelve months in accordance with our normal payroll schedule, and (ii) reimbursement for monthly COBRA premiums until the earlier of twelve months following termination of employment or the date on which he becomes eligible for substantially equivalent health insurance coverage under another employer's group plan.

If Mr. Wedan provides 30-day written notice of resignation, he will be entitled only to (i) any earned and unpaid salary accrued through the date of termination and (ii) any vested benefits under our employee benefit plans.

Upon Mr. Wedan's death his estate will receive his annual base salary and all vested employee benefits through the date of termination.

We refer you to the copy of Mr. Wedan's amended and restated employment agreement, which is attached as Exhibit 10.12 to this Registration Statement, as this summary is subject to, and is qualified in its entirety by reference to, the full amended and restated employment agreement.

***Gregg Stenzel***

We are party to an employment agreement dated as of October 23, 2019, with Mr. Stenzel, who served as our Chief Operating Officer during fiscal year 2025 and, effective January 1, 2026, serves as our Vice President of Research and Development. The employment agreement does not have a specific term and provides that Mr. Stenzel is an at-will employee.

As approved by our Board of Directors in October 2025, Mr. Stenzel's current annual base salary is $320,000 and his current annual target under our cash-based STI plan is 30% of his annual base salary. Subject to Board approval, his current annual stock option grant under our equity-based LTI plan will have a grant date fair value equal to 30% of his fiscal year 2026 base salary plus STI paid in 2026. To be eligible to receive any annual cash-based STI compensation, Mr. Stenzel must be actively employed by us on the payment date and in compliance with his obligations under his employment agreement.

The employment agreement can be terminated by us for cause, by us without cause, by Mr. Stenzel's 30-day written notice of resignation, or upon the death or disability of Mr. Stenzel.

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If we terminate Mr. Stenzel's employment for cause, he will be entitled only to (i) any earned and unpaid salary accrued through the date of termination and (ii) any vested benefits under our employee benefit plans.

If we terminate Mr. Stenzel's employment without cause, and Mr. Stenzel executes a general release of claims that becomes effective within 60 days of termination, he will be entitled to (i) six months of his then-current base salary, payable over six months in accordance with our normal payroll schedule, and (ii) reimbursement for monthly COBRA premiums until the earlier of six months following termination of employment or the date on which he becomes eligible for substantially equivalent health insurance coverage under another employer's group plan.

If Mr. Stenzel provides 30-day written notice of resignation, he will be entitled only to (i) any earned and unpaid salary accrued through the date of termination and (ii) any vested benefits under our employee benefit plans.

Upon Mr. Stenzel's death or disability his estate will receive his annual base salary and all vested employee benefits through the date of termination.

We refer you to the copy of Mr. Stenzel's employment agreement, which is attached as Exhibit 10.13 to this Registration Statement, as this summary is subject to, and is qualified in its entirety by reference to, the full employment agreement.

***Jonathon Gut***

We are party to an employment agreement dated as of February 20, 2024, with Mr. Gut, our Vice President of Finance and Chief Financial Officer. The employment agreement does not have a specific term and provides that Mr. Gut is an at-will employee.

As approved by our Board of Directors in October 2025, Mr. Gut's current annual base salary is $353,000 and his current annual target under our cash-based STI plan is 40% of his annual base salary. Subject to Board approval, his current annual stock option grant under our equity-based LTI plan will have a grant date fair value equal to 60% of his fiscal year 2026 base salary plus STI paid in 2026. To be eligible to receive any annual cash-based STI compensation, Mr. Gut must be actively employed by us on the payment date and in compliance with his obligations under his employment agreement.

The employment agreement can be terminated by us for cause, by us without cause, by Mr. Gut's 30-day written notice of resignation, or upon the death or disability of Mr. Gut.

If we terminate Mr. Gut's employment for cause, he will be entitled only to (i) any earned and unpaid salary accrued through the date of termination and (ii) any vested benefits under our employee benefit plans.

If we terminate Mr. Gut's employment without cause, and Mr. Gut executes a general release of claims that becomes effective within 60 days of termination, he will be entitled to (i) six months of his then-current base salary, payable over six months in accordance with our normal payroll schedule, and (ii) reimbursement for monthly COBRA premiums until the earlier of six months following termination of employment or the date on which he becomes eligible for substantially equivalent health insurance coverage under another employer's group plan.

If Mr. Gut provides 30-day written notice of resignation, he will be entitled only to (i) any earned and unpaid salary accrued through the date of termination and (ii) any vested benefits under our employee benefit plans.

Upon Mr. Gut's death or disability his estate will receive his annual base salary and all vested employee benefits through the date of termination.

We refer you to the copy of Mr. Gut's employment agreement, which is attached as Exhibit 10.14 to this Registration Statement, as this summary is subject to, and is qualified in its entirety by reference to, the full employment agreement.

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**Equity Awards** 

In the event of a change in control, our Board of Directors has broad discretion under our 2019 Equity Incentive Plan to take various actions with respect to outstanding awards under the plan in connection with a change in control. The terms of individual award agreements or employment agreements may supersede the plan provisions to the extent they provide for different treatment of awards in a change in control.

**Other Compensation and Benefits**

Each of our named executive officers is eligible to participate in our employee benefit plans available in their jurisdiction, including our medical, dental, vision, life, disability, and other employee benefit plans, in each case on the same basis as all of our other employees. We pay some or all the premiums for medical, dental, vision, and life insurance for all of our employees, including our named executive officers. We generally do not provide perquisites or personal benefits to our named executive officers.

In addition, we provide our U.S. employees, including each of our named executive officers, the opportunity to participate in our 401(k) retirement plan. Under the terms of the plan, eligible U.S. employees may make elective deferrals of compensation on a pre-tax or after-tax (Roth) basis, up to the statutorily prescribed annual limits on contributions under the Internal Revenue Code of 1986, as amended (the "Code"). Individual contributions are allocated to each participant's individual account and are then invested in selected investment alternatives according to the participants' directions. The 401(k) plan is intended to be qualified under Section 401(a) of the Code with the 401(k) plan's related trust intended to be tax exempt under Section 501(a) of the Code. As a tax-qualified retirement plan, contributions to the 401(k) plan (except for Roth contributions) and earnings on those contributions are not taxable to the employees until distributed from the 401(k) plan. As a safe harbor 401(k) plan, we make matching contributions equal to 100% of each participant's elective deferrals up to 3% of compensation, plus 50% of deferrals between 3% and 5% of compensation.

**2019 Equity Incentive Plan** 

In February 2019, our Board of Directors adopted, and our stockholders approved, the 2019 Equity Incentive Plan (the "2019 Plan"). The 2019 Plan replaced the 2016 Stock Option Plan, with the company ceasing to grant new awards under the 2016 Stock Option Plan in February 2019. The predecessor to the 2016 Stock Option Plan was the 2006 Plan. We have no equity awards outstanding under either the 2016 Stock Option Plan or the 2006 Plan. Our Board of Directors has also adopted an Australian Sub-Plan to the 2019 Plan which applies to awards granted to participants who are resident in Australia.

*Types of Awards*. The 2019 Plan provides for the grant incentive stock options ("ISOs") within the meaning of Section 422 of the Internal Revenue Code of 1986, as amended, nonstatutory stock options ("NSOs"), stock appreciation rights, restricted stock awards, restricted stock units, deferred stock units, performance awards, non-employee director awards, and other stock-based awards. ISOs may be granted only to employees. All other awards may be granted to employees, non-employee directors, and consultants.

*Share Reserve*. Subject to adjustment for certain changes in our capitalization, the maximum number of shares of common stock that were initially reserved and available for issuance under the 2019 Plan was 11,418,500 shares, which included any shares subject to options issued under our prior plans that subsequently expire or terminate without being exercised. On the first day of each of our fiscal years during the term of the 2019 Plan beginning in 2020, the number of shares available for issuance under the 2019 Plan automatically increases by an amount equal to the lesser of (i) five percent of the aggregate number of shares reserved under the 2019 Plan on the last day of the immediately preceding fiscal year, and (ii) such number of shares determined by our Board of Directors. The maximum aggregate number of shares that may be issued upon the exercise of ISOs under the 2019 Plan may not exceed the initial limit cumulatively increased on each January 1 beginning in 2020 by the lesser of the annual increase for such year or 1,500,000 shares, unless the increase is approved by our stockholders. As of March 16, 2026, the cumulative number of shares authorized for issuance under the 2019 Plan is 42,150,000 shares, of which 1,961,340 shares remained available for issuance.

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Any shares of common stock related to awards granted under this Plan that terminate by expiration, forfeiture, cancellation, or otherwise without the issuance of the shares of common stock, will be available again for grant under this Plan. Shares of common stock subject to awards settled in cash will again be available for issuance pursuant to awards granted under the Plan. However, shares withheld to satisfy income or employment withholding taxes and shares used to pay the exercise or purchase price of a stock award under this plan will be counted against the shares authorized for issuance under the 2019 Plan and will not be available again for grant. The full number of shares subject to a stock-settled stock appreciation right or other stock-based award will be counted against the shares authorized for issuance under the 2019 Plan, regardless of the number of shares actually issued upon settlement. Shares issued under the 2019 Plan may be authorized and unissued shares or treasury shares.

*Administration*. Our Board of Directors, or a duly authorized committee of our Board of Directors, administers the 2019 Plan. Our Board of Directors may also delegate to one or more of its members or to one or more officers the authority to designate recipients and determine the size of awards, subject to certain limitations. Under the 2019 Plan, the plan administrator has the authority to, among other things, (i) designate eligible recipients to be selected as participants, (ii) determine the nature, extent, and terms of awards to be made to each participant, (iii) determine the time and duration of awards and the conditions upon which awards will become exercisable or vest, and (iv) establish rules and regulations for the administration of the 2019 Plan and to interpret the Plan and awards granted under (v) and make any other determination and take any other action it deems appropriate for the administration of the 2019 Plan. Our Board of Directors and Nomination and Remuneration Committee are each considered to be plan administrators for purposes of the 2019 Plan.

*Stock Options*. ISOs and NSOs are granted pursuant to stock option agreements adopted by the plan administrator. The plan administrator determines the exercise price for a stock option, within the terms and conditions of the 2019 Plan, provided that the exercise price of a stock option cannot be less than 100% of the fair market value of our common stock on the date of grant. Options granted under the 2019 Plan vest at the rate specified by the plan administrator. Options expire after 10 years from the grant date.

*Tax Limitations on ISOs*. The aggregate fair market value, determined at the time of grant, of our common stock with respect to ISOs that are exercisable for the first time by an option holder during any calendar year under all of our equity incentive plans may not exceed $100,000. Options or portions thereof that exceed such limit will be treated as NSOs. No ISO may be granted to any person who, at the time of the grant, owns or is deemed to own stock possessing more than 10% of our total combined voting power or that of any of our affiliates unless the option exercise price is at least 110% of the fair market value of the stock subject to the option on the date of grant and the term of the ISO does not exceed five years from the date of grant.

*Restricted Stock Awards*. Restricted stock awards are granted pursuant to restricted stock award agreements adopted by the plan administrator. Restricted stock awards are subject to such conditions or restrictions as the plan administrator may deem advisable, including a requirement that participants pay a stipulated purchase price for each share of common stock underlying a restricted stock award, and time-based restrictions on vesting or restrictions based upon the achievement of specific performance goals. Except as otherwise provided in an applicable award agreement, all outstanding unvested restricted stock awards held by the participant as of the effective date of termination of employment will be terminated and forfeited. Unless otherwise determined by the plan administrator and set forth in a participant's award agreement, participants holding a restricted stock award will be granted the right to exercise full voting rights with respect to such shares during the period of restriction and will have the same dividend rights as our other stockholders, provided that any such dividends as to a restricted stock award that is subject to vesting requirements will be subject to forfeiture and termination to the same extent as the restricted stock award to which such dividends relate.

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*Restricted Stock Unit Awards*. Restricted stock unit awards are granted pursuant to restricted stock unit award agreements adopted by the plan administrator. Restricted stock unit awards are subject to such conditions or restrictions as the plan administrator may deem advisable, including a requirement that participants pay a stipulated purchase price for each share of common stock underlying a restricted stock unit, and time-based restrictions on vesting or restrictions based upon the achievement of specific performance goals. A restricted stock unit award may be settled by cash, delivery of stock, a combination of cash and stock as deemed appropriate by the plan administrator, or in any other form of consideration set forth in the restricted stock unit award agreement. Additionally, dividend equivalents may be credited in respect of shares covered by a restricted stock unit award. Except as otherwise provided in an applicable award agreement, all outstanding unvested restricted stock units held by the participant as of the effective date of termination of employment will be terminated and forfeited. Participants have no voting rights with respect to shares represented by restricted stock units until the date of the issuance of such shares.

*Stock Appreciation Rights*. Stock appreciation rights are granted pursuant to stock appreciation right agreements adopted by the plan administrator. The plan administrator determines the grant price for a stock appreciation right, which cannot be less than 100% of the fair market value of our common stock on the date of grant. Upon the exercise of a stock appreciation right, we will pay the participant an amount equal to the excess of the per share fair market value of our common stock on the date of exercise over the grant price, multiplied by the number of shares of common stock with respect to which the stock appreciation right is exercised. A stock appreciation right granted under the 2019 Plan vests at the rate specified in the stock appreciation right agreement as determined by the plan administrator. No stock appreciation right may be exercisable after 10 years from its grant date.

*Performance Awards*. The 2019 Plan permits the grant of performance-based stock and cash awards. The plan administrator can structure such awards so that stock or cash will be issued or paid pursuant to such award only after the achievement of certain pre-established performance goals during a designated performance period. The plan administrator will select one or more performance criteria for purposes of establishing the performance goals for a performance period. In evaluating performance, the plan administrator may include or exclude items such as changes in accounting principles, financing activities, restructuring or productivity initiatives, acquisitions, discontinued operations, and unusual or extraordinary corporate events, as determined by the plan administrator. The plan administrator may also amend or modify the vesting criteria and performance goals of any outstanding awards in recognition of unusual or nonrecurring events affecting the Company or changes in applicable laws, regulations, or accounting principles. Partial achievement of the specified criteria may result in the payment or vesting corresponding to the degree of achievement as specified in the award agreement.

*Other Stock Awards*. The plan administrator may grant other stock-based awards to eligible recipients, including the grant or offer for sale of unrestricted shares of common stock, in such amounts and subject to such terms and conditions as the plan administrator will determine. Such awards may involve the transfer of actual shares of common stock to participants as a bonus or in lieu of obligations to pay cash or deliver other property under the plan or under other plans or compensatory arrangements, or payment in cash or otherwise of amounts based on the value of shares of common stock. Each other stock-based award will be expressed in terms of shares of common stock or units based on shares of common stock, as determined by the plan administrator.

*Changes to Capital Structure*. In the event of any reorganization, merger, consolidation, recapitalization, liquidation, reclassification, stock dividend, stock split, combination of shares, rights offering, divestiture, or extraordinary dividend (including a spin off) or any other similar change in the corporate structure or shares of common stock of the Company, the plan administrator will make appropriate adjustment or substitutions to (i) the number and kind of securities or other property (including cash) available for issuance or payment under the 2019 Plan, and (ii) the number and kind of securities or other property (including cash) subject to outstanding awards and the exercise price of outstanding awards.

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*Change in Control*. In the event of a change in control, our Board of Directors has discretion under the 2019 Plan to take various actions with respect to outstanding awards. The Board may require that shares of stock of a successor corporation be substituted for outstanding awards, with appropriate equitable adjustments to the number of shares and other terms. The Board may also provide that outstanding options become exercisable in full or in part, that restrictions or vesting applicable to restricted stock and restricted stock units lapse in full or in part, that performance periods and performance goals applicable to outstanding awards lapse or are deemed satisfied at target or another level, or that outstanding awards be canceled and terminated in exchange for cash or shares of stock of the successor corporation. The terms of individual award agreements or employment agreements may supersede the provisions above to the extent they provide for different treatment of awards in a change in control.

*Transferability*. A participant may not transfer stock awards under our 2019 Plan other than by will, the laws of descent and distribution, or as otherwise provided under our 2019 Plan.

*Plan Amendment or Termination*. Our Board of Directors has the authority to amend, suspend, or terminate the 2019 Plan, provided that such action does not materially impair a participant's rights under his or her outstanding awards without such participant's written consent and provided further that stockholder approval is required for certain types of amendments. The 2019 Plan will automatically terminate on the day before the tenth anniversary of the date our Board of Directors adopted the 2019 Plan, unless terminated sooner by the Board.

**Policies and Practices Related to the Grant of Certain Equity Awards Close in Time to the Release of Material Nonpublic Information**

With respect to the timing of equity awards, our practice is to grant annual equity awards to executive officers in accordance with the Remuneration Plan and to all other recipients in May of each year, with other grants as determined by the Nomination and Remuneration Committee. This timing is dependent upon a sufficient number of shares of our common stock reserved under our stockholder-approved equity plan. If there is an insufficient number of shares of our common stock reserved under our stockholder-approved equity plan, then the timing of our equity grants may be delayed until shortly after stockholder approval of a new equity plan or an increase in the share reserve under the existing plan. We intend not to grant stock options or similar awards in anticipation of the release of material nonpublic information that is likely to result in changes to the price of our common stock, such as a significant positive or negative earnings announcement, and not to time the public release of such information based on stock option grant dates.

**Non-Executive Director Compensation**

Under our Bylaws, our Board of Directors determines the total amount paid to all directors for their services. However, under the ASX Listing Rules, the total amount paid to all directors (excluding the salary of any executive director and excluding any equity securities issued to a director with the approval of stockholders under the ASX Listing Rules) for their services must not exceed in aggregate in any fiscal year, the amount approved by stockholders in a general meeting. This amount has been fixed at $400,000.

Our Board of Directors seeks to set non-executive director ("NED") fees at levels that provides us with the ability to attract and retain NEDs of high caliber with relevant professional expertise and reflects the demands that are made on, and the responsibilities of, the NEDs, while incurring a cost that is acceptable to stockholders. As our operations are in the initial stages of commercialization, we have structured NEDs fees to include both cash remuneration and equity awards in order to maintain appropriate remuneration structures and preserve cash flow. Equity awards issued to NEDs do not have performance hurdles attached.

NEDs serving on our Board of Directors will receive $65,000 in annual fees. Committee chairs will receive an additional $10,000 in annual fees. Committee members will receive an additional $5,000 in annual fees. All fees for Australian NEDs are inclusive of superannuation. The Chairman, Mr. Steve Wedan, does not receive compensation for his service as a director. His compensation for service as an executive officer during 2025 is disclosed in the 2025 Summary Compensation Table and related narrative disclosure.

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We generally provide for each of our NEDs with an opportunity to receive an annual equity-based award under our annual remuneration plan. Our Board of Directors is responsible for approving equity grants, subject to stockholder approval. Separately, NEDs appointed to our Board pursuant to our contractual obligations are non-independent non-executive directors. Non-independent non-executive directors are not eligible to receive compensation under our annual remuneration plan.

In May 2025, our Board of Directors granted to certain of our non-executive directors restricted stock awards with a grant date fair value equal to 50% of their 2025 fees. Mark Tibbles and Peter McGregor each received 41,280 shares, and Anita Messal received 38,700 shares. The shares underlying these awards vest in equal annual installments over four years from the grant date, subject to each director's continued service with the Company. The actual grant date fair values of these awards may vary from the planned allocation as a percentage of annual fees due to fluctuations in our stock price and, where applicable, currency translation adjustments occurring between the initial fair value measurement, stockholder approval at the Annual General Meeting, and the grant date.

The following table sets forth information concerning the compensation for all of our directors (except Mr. Wedan) for the year ended December 31, 2025:

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| | | | |
|:---|:---|:---|:---|
|  | **Fee Earned or Paid in Cash** | **Stock Awards** | **Total** |
| **Name** | **($)** | **($)¹** | **($)** |
| Mark Tibbles<br><sup>2</sup> | 80000 | 44349 | 124349 |
| Peter McGregor<br><sup>3</sup> | 80000 | 44349 | 124349 |
| Anita Messal<br><sup>4</sup> | 75000 | 41577 | 116577 |
| Aldo Denti<br><sup>5</sup> | 10151 |  | 10151 |
| Jeffrey Leighton<br><sup>6</sup> |  |  |  |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Amounts do not reflect dollar amounts actually received by our NEDs and instead represent the aggregate grant date fair values of restricted stock awards granted in 2025.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) At December 31, 2025, Mr. Tibbles had 526,806 outstanding options to purchase shares of common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) At December 31, 2025, Mr. McGregor had 246,906 outstanding options to purchase shares of common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) At December 31, 2025, Ms. Messal had 38,340 outstanding options to purchase shares of common stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) Mr. Denti was appointed to the Board of Directors effective November 5, 2025, and accordingly received pro-rated board fees for the period from his appointment through the end of the fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) Dr. Leighton is a non-independent non-executive director and therefore is not eligible to receive compensation under our annual remuneration plan.

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| | |
|:---|:---|
| **Item 7.** | **Certain Relationships and Related Transactions, and Director Independence.** |

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**Certain Relationships and Related Transactions**

The following describes all transactions since January 1, 2024, to which we have been a party, in which the amount involved exceeded or will exceed $120,000 or 1% of the average of the Company's total assets at year-end for the last two completed fiscal years, and in which any of our directors, executive officers, or beneficial owners of more than 5% of our common stock, or an affiliate or immediate family member thereof, had or will have a direct or indirect material interest, other than compensation, termination, and change-in-control arrangements, which are described under Item 6. Executive Compensation.

**Securities Purchase Agreement**

On December 16, 2022, we entered into a Securities Purchase Agreement with K.A.H.R. Foundation, a beneficial owner of more than 5% of our common stock, for the issue of unsecured, unquoted convertible promissory notes, to be issued in two tranches, to raise a maximum aggregate amount of $5,000,000.

The first tranche was issued on December 23, 2022. The Company received $2,325,000 in gross proceeds from the issuance of the convertible note. The convertible note bears interest of 10% per annum, compounded annually. The interest accrued during the years ended December 31, 2025 and 2024 was $281,942 and $256,311, respectively. As of December 31, 2025 and 2024, cumulative accrued interest on the first tranche totaled $776,358 and $494,416, respectively. All or a portion of the principal is convertible into CHESS Depositary Interests ("CDIs") at a price of $0.2691 per share at the election of the holder following the 36-month anniversary of the closing date. All or a portion of accrued and unpaid interest is convertible into CDIs at a price of $0.2563 per share at the election of the holder during the same time frame. Accrued interest on the convertible notes is included in the fair value of the convertible notes on the consolidated balance sheets. The maximum number of CDIs to be issued upon conversion of the principal amount and interest is no more than 12,849,949 CDIs. As of December 31, 2025, 11,669,009 CDIs would be issued if the principal and accrued interest were converted.

The second tranche was issued on March 28, 2023. The Company received $2,675,000 of gross proceeds from the issuance of the convertible note. The second tranche is subject to the same terms as the first tranche. The interest accrued during the years ended December 31, 2025 and 2024 was $316,661 and $287,874, respectively. As of December 31, 2025 and 2024, cumulative accrued interest on the second tranche totaled $808,275 and $491,614, respectively. The maximum number of CDIs to be issued upon conversion of the principal and interest is no more than 14,784,350 CDIs. As of December 31, 2025, 13,094,172 CDIs would be issued if the principal and accrued interest were converted.

The maturity date on the notes is the earliest occurrence of (i) a change-in-control event, at which time the Company would be required to pay the holder the greater of 125% of the then outstanding balance plus accrued and unpaid interest or the amount the holder would receive if the principal and accrued and unpaid interest had been converted to CDIs at a conversion price equal to the variable weighted average price ("VWAP") of the CDIs for the 10 day period ending on the change-in-control event date; or (ii) the four year anniversary of the closing date of each tranche.

On March 28, 2023 and December 23, 2022, pursuant to the Securities Purchase Agreement, the Company issued warrants exercisable for 1,043,699 and 907,141 CDIs, respectively, with an exercise price of $0.2563 per share. The warrants expire five years after the dates of issuance.

As of December 31, 2025 and 2024, the aggregate principal amount outstanding was $5,000,000 (representing the largest principal balance outstanding since January 1, 2024). During fiscal year 2025 and 2024, no principal or interest was repaid. As of December 31, 2025 and 2024, the aggregate 1,950,840 warrants remain outstanding.

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In connection with the Securities Purchase Agreement, K.A.H.R. Foundation has the right to nominate one individual (the "Lender Nominee") to our Board of Directors, subject to customary background checks, regulatory approvals, and compliance with ASX Listing Rules. If stockholders fail to elect the initial Lender Nominee, the Company shall increase the Board size by one seat and appoint the nominee selected by K.A.H.R. Foundation to fill the vacancy. For so long as the convertible notes remain outstanding, if the Lender Nominee resigns or otherwise ceases to serve as a director, K.A.H.R. Foundation has the right to designate a successor, and the Company shall promptly appoint such successor to the Board. K.A.H.R. Foundation's nomination and appointment rights automatically terminate when the convertible notes are no longer outstanding, at which time the serving Lender Nominee shall resign from the Board immediately upon the Company's written request.

Dr. Jeffrey Leighton was appointed as a Class III director effective July 2024 pursuant to these nomination rights granted to the K.A.H.R. Foundation.

See Note 7 – Convertible Notes with Warrants (related party) to our audited consolidated financial statements included elsewhere in this Registration Statement for further information.

**Participation in Institutional Placements** 

On February 9, 2024, we completed placements in which we issued 14,069,396 CDIs at $0.45 Australian dollars per CDI in the institutional placement, and 3,766,666 shares of common stock at $0.30 per share in the U.S. placement. An affiliate of K.A.H.R. Foundation participated in the U.S. placement and purchased 1,666,667 shares for the aggregate purchase price of $500,000.

On March 27, 2025, we completed a placement in which we issued 49,645,391 CDIs at $1.41 Australian dollars per CDI. Hart Capital Partners, a beneficial owner of more than 5% of our common stock, participated in the placement and purchased 2,943,262 CDIs for the aggregate purchase price of $4,149,999 Australian dollars (US$2,616,824). Greencape Capital, a beneficial owner of more than 5% of our common stock, participated in the placement and purchased 20,000,000 CDIs for the aggregate purchase price of $28,200,000 Australian dollars (US$17,781,792).

**Director Independence**

Our Board has determined that the following Board members can be considered independent:

● Mark Tibbles

● Peter McGregor

● Anita Messal

● Aldo Denti

We consider that a director is an independent director where that director is free from any business or other relationship that could materially interfere with, or be perceived to interfere with, the independent exercise of the director's judgment. While we are not currently seeking a listing on Nasdaq, the New York Stock Exchange ("NYSE"), or any other U.S. securities exchange and do not intend to do so in the foreseeable future, we have assessed the independence of our directors with respect to the definition of independence prescribed by Nasdaq and the SEC. Although we may seek a listing on Nasdaq or NYSE in the future, there is no guarantee that we will do so or that we will achieve a listing on Nasdaq, NYSE, or any other exchange in any particular timeframe or at all.

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Our Board of Directors undertook a review of its composition, the composition of its committees and the independence of our directors and considered whether any director has a material relationship with us that could compromise his or her ability to exercise independent judgment in carrying out his or her responsibilities. Based upon information requested from and provided by each director concerning his background, employment, and affiliations, including family relationships, our Board of Directors has determined that each of Mr. Tibbles, Mr. McGregor, Ms. Messal, and Mr. Denti, representing four of our six directors, do not have a relationship that would interfere with the exercise of independent judgment in carrying out the responsibilities of a director and that each of these directors is "independent" as that term is defined under the rules of Nasdaq.

In making these determinations, our Board of Directors considered the current and prior relationships that each non-employee director has with our company and all other facts and circumstances our Board of Directors deemed relevant in determining their independence, including the beneficial ownership of our capital stock by each non-employee director, and the transactions involving them described in the section titled "Certain Relationships and Related Transactions."

**Corporate Governance**

The roles of Chair of the Board and Chief Executive Officer of the Company are currently performed by Mr. Steve Wedan. Our Board of Directors does not have a policy requiring the separation of the roles of Chair of the Board and Chief Executive Officer, as the Board believes it is in the best interests of the Company and our stockholders to make this determination based on the Company's specific circumstances and needs at any particular point in time.

The Board considers Mr. Wedan to presently be the most appropriate person to serve as Chair given the size of the Board and the Company's stage of development. Mr. Wedan's role as both Chief Executive Officer and founder of the Company provides him with unique insights into our operations, clinical programs, and strategic direction, which enhances the Board's ability to fulfill its oversight responsibilities effectively. The combined role also provides a single point of leadership for Imricor so that the company maintains a unified message and strategic direction.

To enhance the independent oversight function of the Board while maintaining this structure, Mr. Tibbles serves as Lead Independent Director, presiding over meetings of the non-executive directors and serving as a liaison between the non-executive directors and management on sensitive matters. The Board recognizes that different board leadership structures may be appropriate for the Company as it continues to grow and evolve. The Board evaluates its leadership structure on an annual basis to ensure it remains appropriate for the Company's specific characteristics and circumstances. As stated in our Board Charter, the Board is free to select its Chairman and Imricor's Chief Executive Officer in the manner it considers in the best interests of the company at any given point in time.<br>**Board Committees**

Our Board of Directors has an Audit and Risk Committee, and Nomination and Remuneration Committee, each of which has the composition and the responsibilities described below. Formal charters can be viewed on the Company's website at http://www.imricor.com/corporate-governance/.

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***Audit and Risk Committee***

The members of our Audit and Risk Committee are Mr. Tibbles, Mr. McGregor, and Ms. Messal. Mr. McGregor qualifies as a financial expert as defined in the Nasdaq rules, given he has over 30 years of experience in senior finance and management roles as described in Item 5. Directors and Executive Officers. Mr. McGregor is the chair of the Audit and Risk Committee. The purpose of the committee is to assist the Board in fulfilling its responsibilities in relation to financial reporting processes, audit processes, risk management systems, and compliance frameworks. The Audit and Risk Committee also assists with:

● reviewing the consolidated financial statements and any accompanying reports with management and the external auditor and if considered appropriate, to recommend their approval to the Board;

● the appointment, reappointment, or replacement of the external auditor and the rotation of the audit engagement partner;

● the remuneration and other contractual terms of the external auditor;

● the effectiveness and independence of the external auditor;

● assessing any proposal for the external auditor to provide non-audit services and whether it might compromise the independence of the external auditor;

● establishing procedures for the consideration of any complaints received by us regarding accounting, internal control, and auditing matters.

● overseeing the establishment, methodology, and implementation of the risk management procedures, including processes to ensure that there are reviews of internal control procedures and the operational effectiveness of the procedures related to risk and control;

● review and approve transactions that have or will have a material direct or indirect interest between us and our directors, officers, and related parties; and

● reviewing the procedures in place to ensure compliance with laws and regulations that are material to us, including any specific compliance requirements under the terms of any regulatory approvals granted in connection with the business.

Our Audit and Risk Committee operates under a written charter, which has been prepared having regard to the recommendations set out in the ASX Corporate Governance Principles and Recommendations.

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***Nomination and Remuneration Committee***

The members of our Nomination and Remuneration Committee are Mr. Tibbles, Mr. McGregor, and Ms. Messal. Mr. Tibbles is the chair of our Nomination and Remuneration Committee. The purpose of the committee is to assist the Board in reviewing and approving remuneration and incentive policies and practices. The Nomination and Remuneration Committee also:

● establishes processes for the identification of suitable candidates for appointment to the Board;

● establishes processes for reviewing the performance of individual Directors, the Board as a whole, and Board committees;

● determines executive remuneration policy and non-executive director remuneration policy;

● reviews all equity-based incentive plans and makes recommendations to the Board regarding their adoption and implementation; and

● ensures that our remuneration policies are balanced and do not reward behavior that is inconsistent with our values.

Our Nomination and Remuneration Committee operates under a written charter, which has been prepared having regard to the recommendations set out in the ASX Corporate Governance Principles and Recommendations.

**Code of Business Conduct**

Our Board of Directors has adopted a code of business conduct that applies to all of our employees, officers, and directors, including those officers responsible for financial reporting. Our code of business conduct is available on our website at http://www.imricor.com/.

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| **Item 8.** | **Legal Proceedings.** |

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From time to time, we may become involved in litigation relating to claims arising out of our operations in the normal course of business. No legal proceedings, government actions, administrative actions, investigations, or claims are currently pending against us or our officers and directors in which we are adverse.

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| **Item 9.** | **Market Price of and Dividends on the Registrant**'**s Common Equity and Related Stockholder Matters.** |

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**Market Information** 

Our securities began trading on the Australian Securities Exchange on August 30, 2019, under the ticker "IMR". Prior to such time, there was no public market for our securities. There is no principal market in the U.S. for our CDIs or shares of our common stock.

**Rule 144**

In general, under Rule 144 under the Securities Act, a person who acquires our common stock in a transaction not registered under the Securities Act and has beneficially owned such shares for at least one year would be entitled to sell such shares during any three-month period subject to certain restrictions, including volume limitations and manner of sale requirements.

Under Rule 144(b)(1) of the Securities Act, a person who is not deemed to have been an affiliate of ours at any time during the three months preceding a sale and who has beneficially owned the shares proposed to be sold for at least one year is entitled to sell such shares without complying with the volume and manner of sale restrictions of Rule 144, provided current public information about us is available.

We have not previously filed a registration statement under the Securities Act. Shares sold pursuant to exemptions from registration are designated as "restricted" securities as defined by the Securities Act. As of March 16, 2026, out of a total of 535,000,000 shares of common stock authorized, 320,947,028 shares of common stock are issued as restricted securities and can only be sold or otherwise transferred pursuant to a registration statement under the Securities Act or pursuant to an available exemption from registration. 16,227,895 (5.1%) shares are held by affiliates (directors, officers, and 10% holders), with the balance of 304,719,133 (94.9%) shares being held by non-affiliates.

**Holders** 

As of March 16, 2026, we had 320,947,028 shares of common stock outstanding, held of record by 142 stockholders. The holders included CHESS Depositary Nominees Pty Limited ("CDN"), which held 269,010,509 shares of our common stock. CDN, a subsidiary of ASX Limited, acts as our Australian depositary nominee and issues depository interests, in the form of CDIs, to the CDI holders; of which there were approximately 2,333 registered owners of our CDIs, a substantial majority of whom are non-U.S. holders. There were no shares of preferred stock outstanding.

**Dividends**

Subject to the prior rights of holders of all outstanding classes of stock, the holders of common stock shall be entitled to receive any dividends as may be declared from time to time by the Board of Directors from any assets legally available. The right to such dividends shall not be cumulative, and no right shall accrue by reason of the fact that dividends are not declared in any prior period. However, we have never paid cash dividends on any of our capital stock, and we currently intend to retain our future earnings, if any, to fund the development and growth of our business. We do not intend to pay cash dividends to holders of our common stock in the foreseeable future.

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**Equity Compensation Plan Information** 

The following table provides information about the common stock that may be issued upon the exercise of options, warrants, and rights under all our existing equity compensation plans as of December 31, 2025:

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| **Plan Category** | **Number of securities to**<br> **be issued upon exercise**<br> **of outstanding options,** <br> **warrants and rights<br> (a)** | **Weighted-average** <br> **exercise price of** <br> **outstanding options,** <br> **warrants and rights<br> (b)** | **Number of securities remaining**<br> **available for future issuance under** <br> **equity compensation plans (excluding** <br> **securities reflected in column (a))<br> (c)** |
| Equity compensation plans approved by security holders | 33907621<sup>1</sup> | 0.58 | 581340<sup>2</sup> |
| Equity compensation plans not approved by security holders |  |  |  |
| **Total** | 33907621 | 0.58 | 581340 |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) All stock options issued under the 2019 Plan, as described under Item 6. Executive Compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Represents shares available for issuance under the 2019 Plan.

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| **Item 10.** | **Recent Sales of Unregistered Securities.** |

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Since March 16, 2023, we have issued the following securities pursuant to exemptions from registration under the Securities Act.

**Issuances Exempt Under Rule 701**

The offers, sales, and issuances of the securities described below were deemed to be exempt from registration under the Securities Act pursuant to Rule 701 promulgated under the Securities Act, as offers and sale of securities made pursuant to certain compensatory benefit plans and contracts relating to compensation in accordance with Rule 701.

***Stock Options***

From March 16, 2023 to March 16, 2026, we granted stock options to purchase an aggregate of 24,306,120 shares of common stock at exercise prices ranging from $0.19 to $1.22 per share to a total of 39 employees, consultants, and directors under our 2019 Equity Incentive Plan. The stock options are subject to varying time-based vesting schedules over periods ranging from one to four years or performance-based vesting conditions as determined by our Board of Directors. Of these options, options to purchase 625,234 shares have been forfeited or expired without being exercised, and options to purchase 23,680,886 shares remain outstanding.

From March 16, 2023 to March 16, 2026, 356,150 shares of common stock have been issued upon the exercise of stock options granted under our 2019 Equity Incentive Plan at exercise prices ranging from $0.31 to $0.52 per share, for cash consideration in the aggregate amount of $182,836. After deducting issuance costs of $1,914, we received net proceeds of $180,922.

***Restricted Stock Awards***

From March 16, 2023 to March 16, 2026, we granted an aggregate of 965,295 restricted stock awards ("RSAs") in the form of CDIs to certain directors pursuant to the 2019 Equity Incentive Plan as compensation for director services. Specifically, 528,089 RSAs were granted on May 12, 2023, 315,946 RSAs were granted on May 15, 2024, and 121,260 RSAs were granted on May 14, 2025. The shares underlying these awards vest in equal annual installments over four years from the grant date, subject to each director's continued service with the Company

**Issuances Exempt Under Section 4(a)(2) or Regulation S**

The offers, sales, and issuances of the securities described below were deemed to be exempt from registration under the Securities Act in reliance on Section 4(a)(2) of the Securities Act or Regulation D promulgated thereunder as transactions by an issuer not involving a public offering or Regulation S as an offering made outside the United States. The Company took appropriate measures to confirm that the recipients of securities in each of these transactions acquired the securities for investment only and not with a view to or for sale in connection with any distribution thereof. Each of the recipients of securities in these transactions was an accredited investor, as such term is defined in Rule 501(a) of Regulation D, or a sophisticated person and had adequate access, through employment, business, or other relationships, to information about us. Appropriate legends or notices were affixed to the securities issued in reliance on Regulation S to ensure compliance with Regulation S restrictions.

On July 18, 2023, we completed a U.S. private placement in which the securities were sold to an accredited U.S. investor. We issued 2,857,143 shares of common stock at $0.35 per share. In conjunction with the placement, we issued 428,571 warrants to purchase shares of common stock at $0.60 per share. The warrants have a 10-year term and are exercisable immediately upon issuance. We raised gross proceeds of $1,000,000. After deducting issuance costs of $18,234, we received net proceeds of $981,766.

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On August 15, 2023, we completed a placement in which securities were sold to accredited U.S. investors and investors in Australia and New Zealand. We issued 2,127,056 CDIs at $0.61 Australian dollars per CDI for Australian and New Zealand investors and 2,564,103 shares of common stock at $0.39 per share for U.S investors. In conjunction with the placement, we issued 319,068 warrants to purchase CDIs to Australian and New Zealand investors at $1.00 Australian dollars per CDI and 384,616 warrants to purchase common stock to U.S investors at $0.60 per share. The warrants have a 10-year term and are exercisable immediately upon issuance. We raised gross proceeds of $1,829,736. After deducting issuance costs of $12,797, we received net proceeds of $1,816,939.

In September and October 2023, we issued a total of 961,868 CDIs at prices ranging from $0.47 to $0.60 Australian dollars per CDI. We received gross proceeds of $280,629. After deducting issuance costs of $2,582, we received net proceeds of $278,047.

On October 24, 2023, we completed a placement in which securities were sold to accredited U.S. investors and investors in Australia and New Zealand. We issued 7,126,000 CDIs at $0.50 Australian dollars per CDI for Australian and New Zealand investors and 1,406,250 shares of common stock at $0.32 per share for U.S investors. In conjunction with the placement, we issued 1,781,500 warrants to purchase CDIs to Australian and New Zealand investors at $0.95 Australian dollars per CDI and 351,563 warrants to purchase common stock to U.S investors at $0.60 per share. The warrants have a 10-year term and are exercisable immediately upon issuance. We raised gross proceeds of $2,737,151. After deducting issuance costs of $60,194, we received net proceeds of $2,676,957.

In February and April 2024, we completed a capital raising consisting of an institutional placement, a U.S. placement, and an accelerated pro-rata non-renounceable entitlement offer in which securities were sold to accredited U.S. investors and investors in Australia. On February 9, 2024, we issued 14,069,396 CDIs at $0.45 Australian dollars per CDI in the institutional placement (including the institutional component of the entitlement offer), and 3,766,666 shares of common stock at $0.30 per share in the U.S. placement. Under the retail component of the entitlement offer, we issued 1,419,069 CDIs on February 27, 2024, and 14,378,862 CDIs on April 5, 2024, each at $0.45 Australian dollars per CDI. We raised gross proceeds of $9,848,560. After deducting issuance costs of $637,942, we received net proceeds of $9,210,618.

In July and September 2024, we completed a two-tranche placement in which securities were sold to accredited U.S. investors and investors in Australia, Hong Kong, and New Zealand. In the first tranche on July 25, 2024, we issued 49,514,682 CDIs at $0.52 Australian dollars per CDI to investors in Australia, Hong Kong, and New Zealand. In the second tranche on September 5, 2024, we issued 17,550,154 CDIs at $0.52 Australian dollars per CDI to investors in Australia and New Zealand and 242,857 shares of common stock at $0.35 per share to accredited U.S. investors. We raised gross proceeds of $23,057,731. After deducting issuance costs of $1,266,522, we received net proceeds of $21,791,209.

On February 6, 2025, a total of 163,935 CDI options were exercised at an exercise price of $0.61 Australian dollars per CDI for total proceeds of $62,410. After deducting issuance costs of $991, we received net proceeds of $61,419.

On March 25, 2025, a total of 340,000 CDI options were exercised at an exercise price $0.61 Australian dollars per CDI for total proceeds of $130,842.

On March 27, 2025, we completed a placement in which securities were sold to investors in Australia. We issued 49,645,391 CDIs at $1.41 Australian dollars per CDI. We raised gross proceeds of $44,139,201. After deducting issuance costs of $1,311,624, we received net proceeds of $42,827,577.

On October 24, 2025, a total of 144,526 CDI options were exercised at an exercise price of $0.61 Australian dollars per CDI for total proceeds of $57,120. After deducting issuance costs of $960, we received net proceeds of $56,160.

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| **Item 11.** | **Description of Registrant**'**s Securities to be Registered.** |

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The following summary describes our capital stock, including our common stock being registered hereby. This summary does not purport to be complete and is qualified in its entirety by the provisions of our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws, copies of which have been filed as exhibits to this Registration Statement.

**General** 

Our authorized capital stock consists of 535,000,000 shares of common stock, par value $0.0001 per share, and 25,000,000 shares of preferred stock, par value $0.0001 per share. Of the total shares of common stock authorized, 500,000,000 are classified as Class A common stock and 35,000,000 are classified as Class B common stock. We have no shares of preferred stock or Class B common stock outstanding.

In connection with our IPO certain of our stockholders were required by ASX to enter into an escrow agreement under which the stockholder agreed, among other things, to certain restrictions and prohibitions from engaging in transactions for a period of time. The Class A common stock shall automatically and without further action be converted into shares of Class B common stock, on a one-for-one basis, if the Board of Directors determines, in its sole discretion, that the stockholder breached or violated any term of such stockholder's escrow arrangement or breached the ASX Listing Rules relating to the restricted common stock. Any shares of Class A common stock converted to Class B common stock shall automatically and without further action be converted back into shares of Class A common stock, on a one-for-one basis, upon the earlier to occur of the expiration of the escrow period or the breach of the ASX Listing Rules relating to shares being remedied. All escrow periods have now expired, and no Class A common stock was, or will in the future, be converted to Class B common stock. Unless the context requires otherwise, all references to our common stock refer to our Class A common stock.

**Common Stock** 

***Outstanding Shares***

As of March 16, 2026, we had 320,947,028 shares of Class A common stock outstanding.

***Voting Rights***

Each holder of Class A common stock is entitled to one vote for each share on each matter properly submitted to a vote of the stockholders, including the election of directors. Holders of Class B common stock have no voting rights except as otherwise required by law. Our stockholders do not have cumulative voting rights in the election of directors. For all matters submitted to a vote of the stockholders other than the election of directors, the affirmative vote of a majority of the shares present in person, by remote communication, or represented by proxy at the meeting and entitled to vote on the subject matter will be required to take such actions. Directors are elected by a plurality of the votes of the shares present in person, by remote communication, or represented by proxy at the meeting and entitled to vote generally on the election of directors.

***Dividends***

Subject to the rights of any preferred stock that may be issued from time to time, holders of Class A common stock are entitled to share, on a per share basis, in such dividends and other distributions of cash, property or shares as may be declared by our Board of Directors out of funds legally available. Holders of Class B common stock are not entitled to share in any dividends or other distributions of cash, property, or shares.

***Liquidation***

In the event of our liquidation, dissolution or winding up, and subject to the rights of any preferred stock that may be issued from time to time, holders of Class A and Class B common stock will be entitled to share ratably in the net assets legally available for distribution to stockholders after payment of all our debts and other liabilities.

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***Rights, Preferences, and Privileges***

Holders of Class A common stock and Class B common stock have no preemptive, subscription, redemption, sinking fund, registration, or conversion rights. The rights, preferences, and privileges of holders of Class A and Class B common stock are subject to, and may be adversely affected by, the rights of holders of shares of any series of preferred stock that our Board of Directors may designate and issue in the future.

***Fully Paid and Nonassessable***

All outstanding shares of Class A common stock are fully paid and nonassessable.

***Restrictions on Alienability***

Under the Delaware General Corporation Law, shares are generally freely transferable subject to restrictions imposed by U.S. federal or state securities laws, by our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws, or by an agreement signed with the holders of the shares at issue. Our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws do not impose any specific restrictions on transfer.

***Anti-Discrimination Provisions***

Our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws do not contain provisions that discriminate against any existing or prospective holder of common stock as a result of such stockholder owning a substantial number of securities. All holders within a particular class of common stock have uniform voting, dividend, and liquidation rights regardless of the number of shares they own. However, we are subject to the provisions of Section 203 of the Delaware General Corporation Law, which may, unless certain criteria are met, prohibit certain interested stockholders (defined as stockholders owning 15% or more of our outstanding voting stock) from merging or engaging in various other business combinations with us for a prescribed period.

***Listing***

Our common stock is currently listed on the ASX, under the ticker "IMR".

***Transfer Agent and Registrar***

The transfer agent and registrar for our common stock is Computershare Trust Company, N.A., 150 Royall Street, Canton, Massachusetts 02021, United States. For holders of CDIs, the CDI registry is maintained by Computershare Investor Services Pty Limited, GPO Box 2975, Melbourne, Victoria 3001, Australia.

**CDIs**

In order for our shares of Class A common stock in the form of CHESS Depositary Interests ("CDIs") to trade electronically on the Australian Securities Exchange ("ASX"), we participate in the electronic transfer system known as the Clearing House Electronic Subregister System ("CHESS") operated by ASX Settlement Pty Limited ("ASX Settlement"). ASX Settlement provides settlement services for ASX markets to assist participants and issuers to understand the rules and procedures governing settlement facilities. The ASX Settlement Operating Rules form part of the overall listing and market rules which we are required to comply with as an entity listed on ASX.

CHESS is an electronic system which manages the settlement of transactions executed on ASX and facilitates the paperless transfer of legal title to ASX quoted securities. CHESS cannot be used directly for the transfer of securities of companies domiciled in certain jurisdictions outside of Australia, such as the United States. Accordingly, to enable our shares of Class A common stock to be cleared and settled electronically through CHESS, we have issued and will continue to issue depositary interests called CDIs.

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CDIs confer upon the CDI holder the beneficial ownership in the shares of Class A common stock, with one CDI representing an interest in one share. The legal title to such shares is held by CHESS Depositary Nominees Pty Limited ("CDN"), a subsidiary of ASX Limited, which acts as our Australian depositary nominee and issues the CDIs. CDI holders are entitled to receive all direct economic and other benefits of the underlying shares of Class A common stock.

A holder of CDIs who does not wish to have their trades settled in CDIs may request that their CDIs be converted into shares of Class A common stock on a 1-for-1 basis, in which case legal title to the shares of Class A common stock will be transferred to the holder of CDIs.

There are a number of differences between holding CDIs and shares of Class A common stock. The major differences are that:

● CDI holders do not have legal title in the underlying shares of Class A common stock to which the CDIs relate (the legal title is held by CDN as summarized above); and

● CDI holders are not able to vote personally as stockholders at a meeting of Imricor. Instead, CDI holders are provided with a voting instruction form which enables them to instruct CDN in relation to the exercise of voting rights.

Alternatively, CDI holders can transmute their CDIs into shares of our common stock in sufficient time before the relevant meeting, in which case they will be able to vote personally as our stockholders.

**Preferred Stock** 

Our Board of Directors is authorized to issue up to 25,000,000 shares of preferred stock in one or more series, to fix number of shares to be included in each series, and establish the voting powers, designation, preferences, and rights of each series and any of its qualifications, limitations, or restrictions, subject to the limitations of Delaware law and, to the extent applicable, the ASX Listing Rules. Our Board of Directors is also authorized to increase or decrease the number of shares in any series after issuance, provided that the number of shares does not fall below the outstanding shares of that series without any further vote or action by the Company's stockholders unless required by applicable law or the ASX Listing Rules. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring, discouraging, or preventing a change in control of Imricor and may adversely affect the market price of our common stock and the rights of the holders of common stock.

**Anti-Takeover Provisions** 

Our Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws include a number of provisions that may deter or impede hostile takeovers or changes of control or management. These provisions include:

*Issuance of undesignated preferred stock.* Our Board of Directors is authorized to issue up to 25,000,000 shares of preferred stock in one or more series, to fix the number of shares to be included in each series, and establish the voting powers, designation, preferences, and rights of each series and any of its qualifications, limitations, or restrictions, subject to the limitations of Delaware law and, to the extent applicable, the ASX Listing Rules. The existence of authorized but unissued shares of preferred stock enables our Board of Directors to make it more difficult or to discourage an attempt to obtain control of us by means of a merger, tender offer, proxy contest, or otherwise.

*Classified Board of Directors.* Our Amended and Restated Certificate of Incorporation provides for a classified Board of Directors divided into three classes, with each class serving a three-year term. This staggered director election structure means that a majority of our Board of Directors cannot be replaced in any single annual meeting. This provision may discourage a potential acquiror from launching a proxy contest, since it would be difficult for the acquiror to obtain control of our Board of Directors without the cooperation of management.

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*Director Removal and Vacancy Provision*. Our Certificate of Incorporation provides that directors may only be removed with cause by the affirmative vote of holders of at least 66 2/3% of our outstanding voting stock. Additionally, any vacancies on the Board of Directors are filled by majority vote of the remaining directors, not by stockholders. The number of directors constituting our Board of Directors may be set only by resolution adopted by a majority vote of the authorized number of directors. These provisions prevent a stockholder from increasing the size of our Board of Directors and gaining control of our Board of Directors by filling the resulting vacancies with its own nominees.

*No Cumulative Voting*. Our Amended and Restated Certificate of Incorporation does not provide for cumulative voting rights in the election of directors. Accordingly, stockholders do not have cumulative voting rights in the election of directors. This provision prevents a minority stockholder from accumulating votes and potentially electing one or more directors of its choosing.

*Stockholder action; special meetings of stockholders*. Our Amended and Restated Certificate of Incorporation provides that stockholders may only take action at annual or special meetings of stockholders and may not take action by written consent or electronic transmission. Additionally, special meetings of stockholders may only be called by the Chairperson of the Board, the Chief Executive Officer, or a majority of our Board of Directors. These restrictions prevent stockholders from taking action without the notice and procedural requirements of a stockholder meeting and limit the ability of a potential acquiror to take action with stockholder support without calling a stockholder meeting.

*Advance notice requirements for stockholder proposals and director nominations.* Our Amended and Restated Bylaws require stockholders to provide advance written notice (between 90 and 120 days before the anniversary of the preceding annual meeting of stockholders) of any proposals they intend to bring before an annual meeting of stockholders or any director nominees they intend to propose. These provisions may make it more difficult for our stockholders to bring matters before our annual meeting of stockholders or to nominate directors at annual meetings of stockholders.

We designed these provisions to enhance the likelihood of continued stability in the composition of our Board of Directors and its policies, to discourage certain types of transactions that may involve an actual or threatened acquisition of us, and to reduce our vulnerability to an unsolicited acquisition proposal. We also designed these provisions to discourage certain tactics that may be used in proxy fights. However, these provisions could have the effect of discouraging others from attempting hostile takeovers and, as a consequence, they may also inhibit temporary fluctuations in the market price of our common stock that often result from actual or rumored hostile takeover attempts. These provisions may also have the effect of preventing changes in the composition of our Board of Directors and management. It is possible that these provisions could make it more difficult to accomplish transactions that stockholders may otherwise deem to be in their best interests.

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***Section 203 of the Delaware General Corporation Law***

We are subject to Section 203 of the Delaware General Corporation Law ("DGCL"), which prohibits a Delaware corporation from engaging in a business combination with any interested stockholder for a period of three years following the time that such stockholder became an interested stockholder, unless:

● prior to such time the Board of Directors of the corporation approved either the business combination or the transaction which resulted in the stockholder becoming an interested stockholder;

● upon consummation of the transaction which resulted in the stockholder becoming an interested stockholder, the interested stockholder owned at least 85% of the voting stock of the corporation outstanding at the time the transaction commenced, excluding for purposes of determining the voting stock outstanding (but not the outstanding voting stock owned by the interested stockholder) those shares owned (i) by persons who are directors and also officers and (ii) employee stock plans in which employee participants do not have the right to determine confidentially whether shares held subject to the plan will be tendered in a tender or exchange offer; or

● at or subsequent to such time the business combination is approved by the Board of Directors and authorized at an annual or special meeting of stockholders, and not by written consent, by the affirmative vote of at least 66 2/3% of the outstanding voting stock which is not owned by the interested stockholder.

In general, Section 203 of the DGCL defines business combination to include the following:

● any merger or consolidation of the corporation or any subsidiary thereof and any other corporation, whether or not such other corporation is incorporated in the State of Delaware, involving the interested stockholder;

● any sale, lease, pledge, or other disposition (in one transaction or a series of transactions) of assets representing 10% or more of either (i) the aggregate market value of all assets of the corporation (determined on a consolidated basis) or (ii) the aggregate market value of all outstanding stock of the corporation, involving the interested stockholder;

● subject to certain exceptions, any transaction that results in the issuance or transfer by the corporation of any stock of the corporation to the interested stockholder;

● any transaction involving the corporation that has the effect of increasing the proportionate share of any class or series of stock or securities of the corporation or any subsidiary thereof beneficially owned by the interested stockholder; and

● the receipt by the interested stockholder of the benefit, directly or indirectly, of any loans, advances, guarantees, pledges, or other financial benefits by or through the corporation.

In general, Section 203 of the DGCL defines an "interested stockholder" as an entity or person who, together with the entity's or person's affiliates and associates, beneficially owns, or is an affiliate of the corporation and within three years prior to the time of determination of interested stockholder status did own, 15% or more of the outstanding voting stock of the corporation. A Delaware corporation may "opt out" of these provisions with an express provision in its certificate of incorporation. We have not opted out of these provisions, which may, as a result, discourage or prevent mergers or other takeover or change of control attempts of us.

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| **Item 12.**  | **Indemnification of Directors and Officers.** |

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**General Corporation Law of the State of Delaware**

Section 145(a) of the DGCL provides that a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the corporation) by reason of the fact that the person is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, against expenses (including attorneys' fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by the person in connection with such action, suit, or proceeding if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe the person's conduct was unlawful. The termination of any action, suit, or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that the person did not act in good faith and in a manner which the person reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had reasonable cause to believe that the person's conduct was unlawful.

Section 145(b) of the DGCL states that a corporation may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending, or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that the person is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise against expenses (including attorneys' fees) actually and reasonably incurred by the person in connection with the defense or settlement of such action or suit if the person acted in good faith and in a manner the person reasonably believed to be in or not opposed to the best interests of the corporation and except that no indemnification shall be made in respect of any claim, issue, or matter as to which the person shall have been adjudged to be liable to the corporation unless and only to the extent that the Delaware Court of Chancery or the court in which such action or suit was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses as the Delaware Court of Chancery or such other court shall deem proper.

Section 145(c) of the DGCL provides that to the extent that a present or former director or officer of a corporation has been successful on the merits or otherwise in defense of any action, suit, or proceeding referred to in subsections (a) and (b) of Section 145, or in defense of any claim, issue, or matter therein, such person shall be indemnified against expenses (including attorneys' fees) actually and reasonably incurred by such person in connection therewith.

Section 145(d) of the DGCL states that any indemnification under subsections (a) and (b) of Section 145 (unless ordered by a court) shall be made by the corporation only as authorized in the specific case upon a determination that indemnification of the present or former director, officer, employee, or agent is proper in the circumstances because the person has met the applicable standard of conduct set forth in subsections (a) and (b) of Section 145. Such determination shall be made with respect to a person who is a director or officer at the time of such determination (1) by a majority vote of the directors who are not parties to such action, suit or proceeding, even though less than a quorum, (2) by a committee of such directors designated by majority vote of such directors, even though less than a quorum, (3) if there are no such directors, or if such directors so direct, by independent legal counsel in a written opinion or (4) by the stockholders.

Section 145(f) of the DGCL states that the indemnification and advancement of expenses provided by, or granted pursuant to, the other subsections of Section 145 shall not be deemed exclusive of any other rights to which those seeking indemnification or advancement of expenses may be entitled under any bylaw, agreement, vote of stockholders or disinterested directors, or otherwise, both as to action in such person's official capacity and as to action in another capacity while holding such office.

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Section 145(g) of the DGCL provides that a corporation shall have the power to purchase and maintain insurance on behalf of any person who is or was a director, officer, employee, or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee, or agent of another corporation, partnership, joint venture, trust, or other enterprise, against any liability asserted against such person and incurred by such person in any such capacity or arising out of such person's status as such, whether or not the corporation would have the power to indemnify such person against such liability under the provisions of Section 145.

Section 145(j) of the DGCL states that the indemnification and advancement of expenses provided by, or granted pursuant to, Section 145 shall, unless otherwise provided when authorized or ratified, continue as to a person who has ceased to be a director, officer, employee, or agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

Section 102(b)(7) of the DGCL permits a corporation to provide in its certificate of incorporation that a director or officer of the corporation shall not be personally liable to the corporation or its stockholders for monetary damages for breach of fiduciary duty as a director or an officer, except for liability for any breach of the director's or officer's duty of loyalty to the corporation or its stockholders, for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, for unlawful payments of dividends or unlawful stock purchases or redemptions in the case of a director, for any transaction from which the director or officer derived an improper personal benefit or in the case of an officer any action by or in the right of the corporation. No such provision shall eliminate or limit the liability of a director or officer for any act or omission occurring prior to the date when such provision becomes effective.

**Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws**

As permitted under Delaware law, Imricor indemnifies certain officers and directors for certain events or occurrences that happen by reason of their relationship with, or position held at, Imricor. The Company's Amended and Restated Certificate of Incorporation and Amended and Restated Bylaws provide for the indemnification of its directors, officers, employees, and other agents to the maximum extent permitted by Delaware General Corporation Law.

**Indemnification Agreements**

Imricor has entered into indemnification agreements with its directors and certain officers to this effect, including advancement of expenses incurred in legal proceedings to which the director or officer was, or is threatened to be made, a party by reason of the fact that such director or officer is or was a director, officer, employee, or agent of Imricor, provided that such director or officer acted in good faith and in a manner that the director or officer reasonably believed to be in, or not opposed to, the Company's best interests.

**Insurance Policy**

We have purchased an insurance policy that purports to insure our directors and officers against certain liabilities incurred by them in the discharge of their functions as directors and officers.

The foregoing description of Section 145 of the DGCL, Section 102(b)(7) of the DGCL, our Amended and Restated Certificate of Incorporation and our Amended and Restated Bylaws is only a summary and is qualified in its entirety by the full text of each of the foregoing.

We have been advised that it is the position of the SEC that insofar as the foregoing provisions may be invoked to disclaim liability for damages arising under the Securities Act, that such provisions are against public policy as expressed in the Securities Act and are therefore unenforceable.

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| **Item 13.** | **Financial Statements and Supplementary Data.** |

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**INDEX TO FINANCIAL STATEMENTS**

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| | |
|:---|:---|
| **Audited Financial Statements** | |
| **Years Ended December 31, 2025 and 2024** | <br>**Page** |
| [Report of Independent Registered Public Accounting Firm](#report) | [F-](#report)[2](#report) |
| [Consolidated Balance Sheets as of December 31, 2025 and 2024](#balancesheet) | [F-](#balancesheet)[3](#balancesheet) |
| [Consolidated Statements of Operations for the Years Ended December 31, 2025 and 2024](#statementofopps) | [F-](#statementofopps)[4](#statementofopps) |
| [Consolidated Statements of Stockholders' Equity (Deficit) for the Years Ended December 31, 2025 and 2024](#equity) | [F-](#equity)[5](#equity) |
| [Consolidated Statements of Cash Flows for the Years Ended December 31, 2025 and 2024](#cashflows) | [F-](#cashflows)[6](#cashflows) |
| [Notes to Consolidated Financial Statements](#notes) | [F-](#notes)[7](#notes) |

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**REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

**Opinion on the Consolidated Financial Statements**

We have audited the accompanying consolidated balance sheets of Imricor Medical Systems, Inc. (the "Company") as of December 31, 2025 and 2024, the related consolidated statements of operations, stockholders' equity (deficit), and cash flows for each of the two years in the period ended December 31, 2025, and the related notes (collectively referred to as the "consolidated financial statements"). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the two years in the period ended December 31, 2025, in conformity with accounting principles generally accepted in the United States of America.

**Basis for Opinion**

These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's consolidated financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

/s/ BDO USA, P.C.

We have served as the Company's auditor since 2022.

Minneapolis, Minnesota

February 24, 2026

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**IMRICOR MEDICAL SYSTEMS, INC.**

CONSOLIDATED BALANCE SHEETS

As of December 31, 2025 and 2024

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| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| ***ASSETS*** | ***ASSETS*** | ***ASSETS*** |
| **CURRENT ASSETS** |  |  |
| Cash and cash equivalents | $19502348 | $15707739 |
| Marketable securities | 21277609 |  |
| Accounts receivable | 240866 | 345342 |
| Inventory | 1096065 | 1502048 |
| Prepaid expenses and other current assets | 799786 | 794308 |
| Total Current Assets | 42916674 | 18349437 |
| **ACCOUNTS RECEIVABLE, LONG TERM** | 95673 | 141430 |
| **PROPERTY AND EQUIPMENT, NET** | 1538460 | 1878751 |
| **INVENTORY, LONG TERM** | 415383 | 327721 |
| **OTHER ASSETS** | 186291 | 208212 |
| **OPERATING LEASE RIGHT OF USE ASSETS** | 604256 | 718379 |
| **TOTAL ASSETS** | $45756737 | $21623930 |
| ***LIABILITIES AND STOCKHOLDERS' EQUITY*** | ***LIABILITIES AND STOCKHOLDERS' EQUITY*** | ***LIABILITIES AND STOCKHOLDERS' EQUITY*** |
| **CURRENT LIABILITIES** |  |  |
| Accounts payable | $496073 | $334870 |
| Accrued expenses | 1619954 | 1493095 |
| Current portion of convertible notes (related party) | 11745700 |  |
| Option liabilities | 3157717 |  |
| Current portion of contract liabilities | 34035 | 59519 |
| Current portion of operating lease liabilities | 317153 | 259292 |
| Current portion of financing obligation |  | 209137 |
| Total Current Liabilities | 17370632 | 2355913 |
| **LONG-TERM LIABILITIES** |  |  |
| Convertible notes, net of current portion (related party) | 13268500 | 19869700 |
| Option liabilities |  | 3135000 |
| Warrant liabilities | 1828677 | 1532067 |
| Contract liabilities, net of current portion | 1085753 | 1098533 |
| Operating lease liabilities, net of current portion | 634043 | 875553 |
| Other long-term liabilities | 45828 | 134197 |
| Total Liabilities | 34233433 | 29000963 |
| **COMMITMENTS AND CONTINGENCIES (NOTE 6)** |  |  |
| **STOCKHOLDERS' EQUITY (DEFICIT)** |  |  |
| Preferred stock, $0.0001 par value: 25,000,000 shares authorized and 0 shares outstanding as of both December 31, 2025 and 2024 |  |  |
| Common stock, $0.0001 par value: 535,000,000 shares authorized as of both December 31, 2025 and 2024 and 320,947,028 and 270,175,766 shares issued and outstanding as of December 31, 2025 and 2024, respectively | 32096 | 27018 |
| Additional paid-in capital | 179089487 | 134875666 |
| Accumulated deficit | (167598279) | (142279717) |
| Total Stockholders' Equity (Deficit) | 11523304 | (7377033) |
| **TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)** | $45756737 | $21623930 |

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See accompanying notes to the consolidated financial statements

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**IMRICOR MEDICAL SYSTEMS, INC.**

CONSOLIDATED STATEMENTS OF OPERATIONS

For the Years Ended December 31, 2025 and 2024

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| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| **REVENUES** |  |  |
| Product revenue | $208376 | $766584 |
| Service revenue | 83933 | 77091 |
| Consulting revenue |  | 115749 |
| Total Revenues | 292309 | 959424 |
| **COSTS AND EXPENSES** |  |  |
| Cost of goods sold | 2325837 | 1883542 |
| Sales and marketing | 4300264 | 2272044 |
| Research and development | 11155766 | 8180184 |
| General and administrative | 5301396 | 4920466 |
| Total Costs and Expenses | 23083263 | 17256236 |
| Loss from Operations | (22790954) | (16296812) |
| **OTHER INCOME (EXPENSE)** |  |  |
| Interest income | 1180294 | 257718 |
| Government grant income | 658546 | 325332 |
| Foreign currency exchange gain | 1509925 | 197867 |
| Interest expense | (4169) | (20065) |
| Change in fair value of convertible notes (related party) | (5144500) | (11416400) |
| Change in fair value of option liabilities | (396491) | (1842240) |
| Change in fair value of warrant liabilities | (296610) | (879551) |
| Other Expense | (34603) | (18680) |
| Total Other Income (Expense) | (2527608) | (13396019) |
| **NET LOSS** | $(25318562) | $(29692831) |
| **EARNINGS PER SHARE:** |  |  |
| Basic and diluted loss per common share | $(0.08) | $(0.13) |
| Basic and diluted weighted average shares outstanding | 308748911 | 223999081 |

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See accompanying notes to the consolidated financial statements

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**IMRICOR MEDICAL SYSTEMS, INC.**

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)

For the Years Ended December 31, 2025 and 2024

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
|  | Common Stock | Common Stock | Additional | Accumulated | Total Stockholders' |
|  | Shares | Amount | Paid-in Capital | Deficit | Equity (Deficit) |
| **BALANCES, December 31, 2023** | 168918134 | $16893 | $103816628 | $(112586886) | $(8753365) |
| Stock-based compensation expense |  |  | 68769 |  | 68769 |
| Issuance of common stock and restricted stock, net of issuance costs of $1,905,897 | 101257632 | 10125 | 30990269 |  | 31000394 |
| Net loss |  |  |  | (29692831) | (29692831) |
| **BALANCES, December 31, 2024** | 270175766 | $27018 | $134875666 | $(142279717) | $(7377033) |
| Stock-based compensation expense |  |  | 589611 |  | 589611 |
| Issuance of common stock and restricted stock, net of issuance costs of $1,313,030 | 49766651 | 4977 | 42821194 |  | 42826171 |
| Exercise of options, net of issuance costs of $3,866 | 1004611 | 101 | 803016 |  | 803117 |
| Net loss |  |  |  | (25318562) | (25318562) |
| **BALANCES, December 31, 2025** | 320947028 | $32096 | $179089487 | $(167598279) | $11523304 |

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See accompanying notes to the consolidated financial statements

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**IMRICOR MEDICAL SYSTEMS, INC.**

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended December 31, 2025 and 2024

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| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| **CASH FLOWS FROM OPERATING ACTIVITIES** |  |  |
| Net loss | $(25318562) | $(29692831) |
| Adjustments to reconcile net loss to net cash flows from operating activities: |  |  |
| Depreciation and amortization | 798715 | 748165 |
| Stock-based compensation expense | 589611 | 68769 |
| Loss (gain) on disposal of property and equipment | 25673 | (2423) |
| Change in inventory reserves | 400167 | 60866 |
| Amortization of right-of-use assets | 196542 | 172872 |
| Services performed in exchange for property and equipment |  | (100000) |
| Foreign currency exchange gain | (1509925) | (197867) |
| Change in fair value of convertible notes (related party) | 5144500 | 11416400 |
| Change in fair value of option liabilities | 396491 | 1842240 |
| Change in fair value of warrant liabilities | 296610 | 879551 |
| Changes in assets and liabilities |  |  |
| Accounts receivable | 151580 | 66277 |
| Inventory | (129846) | 453877 |
| Prepaid expenses and other assets | 16443 | 210586 |
| Accounts payable and other liabilities | 41739 | (1746136) |
| Accrued expenses | 126859 | 702373 |
| Lease liabilities | (269490) | (237019) |
| Contract liabilities | (38264) | (219610) |
| Net Cash Flows used in Operating Activities | (19081157) | (15573910) |
| **CASH FLOWS FROM INVESTING ACTIVITIES** |  |  |
| Purchases of property and equipment | (434287) | (77976) |
| Proceeds from sale of property and equipment |  | 3000 |
| Purchases of marketable securities | (28683359) |  |
| Proceeds from maturity of marketable securities | 7405750 |  |
| Net Cash Flows used in Investing Activities | (21711896) | (74976) |
| **CASH FLOWS FROM FINANCING ACTIVITIES** |  |  |
| Proceeds from issuance of common stock and restricted stock | 44139201 | 32906291 |
| Issuance costs of common stock and restricted stock | (1313030) | (1905897) |
| Proceeds from exercise of options, net of expenses | 429343 |  |
| Payment on promissory note |  | (386452) |
| Payments on finance lease liability |  | (65999) |
| Proceeds from financing obligation |  | 344050 |
| Payments on financing obligation | (209137) | (557779) |
| Net Cash Flows provided by Financing Activities | 43046377 | 30334214 |
| **Net change in cash and cash equivalents** | 2253324 | 14685328 |
| Cash and cash equivalents - beginning of year | 15707739 | 831522 |
| Effect of foreign currency exchange rate changes on cash and cash equivalents | 1541285 | 190889 |
| **Cash and cash equivalents - end of year** | $19502348 | $15707739 |
| **Supplemental cash flow disclosure** |  |  |
| Cash paid for interest | $4169 | $22855 |
| **Noncash investing and financing activities** |  |  |
| Transfer from inventory to property and equipment | $48000 | $175207 |
| Property and equipment obtained in exchange for services | $- | $100000 |
| Property and equipment included in accounts payable | $1810 | $- |
| Operating lease right of use assets in exchange for operating lease liability | $82419 | $- |
| Fair value adjustment for for liability-classified options and warrants exercised | $373774 | $- |

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See accompanying notes to the consolidated financial statements

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**IMRICOR MEDICAL SYSTEMS, INC.**

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

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 **NOTE 1** – **Summary of Significant Accounting Policies**

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*Nature of Operations and Basis of Presentation*

Imricor Medical Systems, Inc. is a U.S.-based medical device company that, along with its wholly-owned subsidiary, Imricor B.V. (together, "Imricor" and the "Company"), seeks to address the current issues with traditional x-ray-guided ablation procedures through the development of Magnetic Resonance Imaging ("MRI") guided technology. Incorporated in the State of Delaware in 2006, the Company's principal focus is the design, manufacturing, sale, and distribution of MRI-compatible products for use in Interventional Cardiac Magnetic Resonance ("iCMR") guided ablation procedures. Imricor's technology utilizes an intellectual property ("IP") portfolio that includes technology developed in-house, as well as IP originating from Johns Hopkins University, Koninklijke Philips N.V., and Livetec Ingenieurbuero, GmbH. The Company is headquartered in Burnsville, Minnesota, where it has development and manufacturing facilities. The Company's primary product offering is the Vision-MR Ablation Catheter, which is specifically designed to work under real-time MRI guidance, with the intent of enabling higher success rates along with a faster and safer treatment compared to conventional procedures using x-ray guided catheters. Historically, Imricor generated revenue from licensing some of its IP for use in implantable devices and performing contract research but expects to generate most of its future revenue from the sale of the MRI-compatible products it has developed for use in cardiac catheter ablation procedures (comprising single-use consumables and capital equipment). The Company has obtained CE mark approval to place its key products on the market in the European Union under the European Union's Medical Device Regulation ("EU MDR"), including the Advantage-MR EP Recorder/Stimulator System, Vision-MR Ablation Catheter, Vision-MR Diagnostic Catheter, and NorthStar Mapping System.

The Company has prepared the accompanying consolidated financial statements and notes in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The consolidated financial statements include the accounts of Imricor Medical Systems, Inc. and its wholly-owned subsidiary, Imricor B.V. All intercompany transactions and balances have been eliminated in consolidation.

The Company's consolidated financial statements and notes are presented in United States dollars, unless otherwise noted, which is also the functional currency.

*Cash and Cash Equivalents* 

Cash and cash equivalents consist of funds in depository accounts, money market funds, and time deposits. The Company considers cash invested in highly liquid financial instruments with original maturities of three months or less at the date of purchase to be cash equivalents. The Company holds cash with high quality financial institutions and, at times, such balances are in excess of federal insurance limits.

Cash and cash equivalents consisted of the following as of December 31:

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| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Cash and cash equivalents |  |  |
| Cash | $1637496 | $517765 |
| Money market funds | 7472940 | 14251177 |
| Time deposits | 10391912 | 938797 |
| Total cash and cash equivalents | $19502348 | $15707739 |

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

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**NOTE 1** – **Summary of Significant Accounting Policies (cont.)**

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*Marketable Securities*

The Company's marketable securities consist of investments in U.S. Treasury bills with original maturities greater than three months from the date of purchase. These securities are classified as held-to-maturity debt securities because the Company has the positive intent and ability to hold them to maturity. Held-to-maturity securities are recorded at amortized cost, adjusted for any allowance for credit losses, with securities having remaining maturities of less than one year classified as current on the consolidated balance sheets.

The Company evaluates held-to-maturity securities for expected credit losses using a qualitative assessment methodology. As of December 31, 2025, no allowance for credit losses was required. U.S. Treasury bills are backed by the full faith and credit of the U.S. government and are considered to have minimal credit risk.

The Company excludes accrued interest from the amortized cost basis of held-to-maturity debt securities. Accrued interest totaled $117,949 as of December 31, 2025*.* Accrued interest is included in prepaid expenses and other current assets on the consolidated balance sheets. The Company recognizes interest income through accretion of the discount from the purchase price to par value over the holding period. Discount accretion is recognized in interest income on the consolidated statements of operations.

The following table summarizes the gross unrealized gains and losses related to the Company's held-to-maturity marketable securities as of and for the year ended December 31:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | 2025 | 2025 | 2025 | 2025 |
|  | Amortized Cost | Gross Unrealized<br> Gains | Gross Unrealized<br> (losses) | Fair Value |
| Marketable securities |  |  |  |  |
| U.S. Treasury bills | $21277609 | $98006 | $- | $21375615 |
| Total marketable securities | $21277609 | $98006 | $- | $21375615 |

---

The Company held no marketable securities as of December 31, 2024. Fair value is measured using Level 2 inputs (prices for similar assets or liabilities that are directly or indirectly observable in the marketplace). All held-to-maturity U.S. Treasury bills had remaining maturities of less than one year as of December 31, 2025. Purchases and maturities of held-to-maturity securities are presented within cash flows from investing activities in the consolidated statements of cash flows.

*Accounts Receivable and Customer Concentrations*

Accounts receivable are unsecured, are recorded net of amounts expected for credit losses, and do not bear interest except if a revenue transaction has a significant financing component. The Company reviews the allowance for credit losses by considering factors such as historical experience, current economic conditions that may affect a customer's ability to pay, and reasonable and supportable forecasts. Payment is generally due 30 days from the invoice date. When all collection efforts have been exhausted, the account is written off against the related allowance. To date the Company has not experienced any significant write-offs or significant deterioration of its accounts receivable aging, and therefore, no allowance for credit losses was considered necessary as of December 31, 2025 or 2024.

As of December 31, 2025 and 2024, the Company had total current and long-term accounts receivable of $336,539 and $486,772, respectively, of which $95,673 and $141,430 was included in long-term accounts receivable as of December 31, 2025 and 2024, respectively. Accounts receivable includes unbilled receivables of $45,757 and $44,424 as of December 31, 2025 and 2024, respectively, which represents the current portion of minimum royalties due to the Company during the following year. The long-term accounts receivable relates to minimum royalties due to the Company beyond twelve months from the respective balance sheet date.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

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**NOTE 1** – **Summary of Significant Accounting Policies (cont.)**

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The following table sets forth information related to accounts receivable for the years ended December 31:

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| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Balance at January 1 | $486772 | $578411 |
| Decrease from accounts receivable collected | (189855) | (396445) |
| Increase for accounts receivable not yet collected | 39622 | 304806 |
| Balance at December 31 | $336539 | $486772 |

---

During the year ended December 31, 2025, the Company had sales from 2 customers that accounted for 40% and 39% of revenue and accounts receivable from 3 customers that represented 65%, 19%, and 15% of the accounts receivable balance. During the year ended December 31, 2024, the Company had sales from 4 customers that accounted for 19%, 17%, 16%, and 15% of revenue and accounts receivable from 4 customers that represented 45%, 17%, 13%, and 12% of the accounts receivable balance.

*Inventory*

Inventories are stated at the lower of cost or net realizable value, with cost determined on the first-in, first-out ("FIFO") method. The establishment of allowances for excess and obsolete inventories is based on historical usage and estimated exposure on specific inventory items. Inventories are as follows:

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| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Inventory - Current Portion |  |  |
| Raw materials | $292566 | $501766 |
| Work in process | 103215 | 228396 |
| Finished goods | 700284 | 771886 |
| Total Inventory - Current Portion | 1096065 | 1502048 |
| Inventory - Long-term |  |  |
| Raw materials | 415383 | 231721 |
| Finished goods |  | 96000 |
| Total Inventory - Long-term | 415383 | 327721 |
| Total Inventory | $1511448 | $1829769 |

---

The Company utilizes significant estimates in determining the realizable value of its inventory, including the future revenue forecasts that will result in product sales. These estimates have a corresponding impact on the inventory values recorded as of December 31, 2025 and 2024. Management continually evaluates the likelihood of future sales based on current economic conditions, expiration timing of products, and product design changes prior to sale of product on hand. If actual conditions are less favorable than those the Company has projected, it may need to increase its reserves for excess and obsolete inventories. Any increases in the Company's reserves will adversely impact its results of operations. The establishment of a reserve for excess and obsolete inventory establishes a new cost basis in the inventory. Future sales of inventory on hand at December 31, 2025 will result in recognition of cost of sales based on initial inventory costs, net of reserves taken for expected realization values. For the years ended December 31, 2025 and 2024, the Company recorded inventory reserves of $400,167 and $60,866, respectively.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

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**NOTE 1** – **Summary of Significant Accounting Policies (cont.)**

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*Property and Equipment*

Property and equipment are stated at cost. Additions and improvements that extend the lives of assets are capitalized, while expenditures for repairs and maintenance are expensed as incurred. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. Amortization of leasehold improvements is computed on a straight-line basis over the shorter of the estimated useful lives of the related assets or life of the lease.

The standard estimated useful lives of property and equipment are as follows:

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| | | | |
|:---|:---|:---|:---|
|  | Years | Years | Years |
| Office furniture and equipment |  | 5 |  |
| Lab and production equipment |  | 5 |  |
| Computer equipment | 3 |  | 5 |
| MRI scanner |  | 7 |  |
| Leasehold improvements | Lesser of useful life or remaining lease term | Lesser of useful life or remaining lease term | Lesser of useful life or remaining lease term |

---

The Company reviews property and equipment and right of use assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the impairment tests indicate that the carrying value of the asset, or asset group, is greater than the expected undiscounted cash flows to be generated by such asset or asset group, further analysis is performed to determine the fair value of the asset or asset group. To the extent the fair value of the asset or asset group is less than its carrying value, an impairment loss is recognized equal to the amount the carrying value of the asset or asset group exceeds its fair value. The Company generally measures fair value by considering sale prices for similar assets or asset groups, or by discounting estimated future cash flows from such assets or asset groups using an appropriate discount rate. Considerable management judgment is necessary to estimate the fair value of assets or asset groups, and accordingly, actual results could vary significantly from such estimates. Assets to be disposed of would be reported at the lower of the carrying amount or fair value less costs to sell. To date, the Company has not recognized any impairment loss for property and equipment and right of use assets.

*Leases*

At the inception of a contract, the Company determines whether the contract is or contains a lease based on all relevant facts and circumstances. Leases with a term greater than 12 months are recognized in the consolidated balance sheets as right of use ("ROU") assets and corresponding current and non-current lease liabilities. Amounts expected to be paid within 12 months are classified as current lease liabilities, with the remainder classified as non-current lease liabilities. The Company has elected not to recognize leases with terms of 12 months or less on the consolidated balance sheets. Lease payments for short-term leases are recognized as an expense on a straight-line basis over the lease term. The Company includes lease option extensions in the assessment of the lease arrangement when it is reasonably certain the option will be exercised.

ROU assets and the corresponding lease liabilities are recorded based on the present value of lease payments to be made over the lease term. The discount rate used to calculate the present value is the rate implicit in the lease, or if not readily determinable, the Company's incremental borrowing rate. The Company's incremental borrowing rate is the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term, an amount equal to the lease payments in a similar economic environment. Certain adjustments to the ROU asset may be required for items such as initial direct costs or incentives received. See Note 5 for additional disclosure on leases.

For all asset classes of its leases, the Company has elected to account for the lease and non-lease components together for all classes of underlying assets.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

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**NOTE 1** – **Summary of Significant Accounting Policies (cont.)**

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*Research and Development Costs*

The Company expenses research and development costs as incurred.

*Nonmonetary Transaction*

The Company had a nonmonetary exchange with a vendor whereby the vendor provided equipment to the Company in exchange for space to display the vendor's product at the Company's booths at two tradeshows during the year ended December 31, 2024. The Company is using the equipment for research and development activities. The transaction was recorded with an addition of $100,000 to Property and equipment on the consolidated balance sheets and an equal reduction to sales and marketing expense on the consolidated statements of operations.

*Other Assets*

Other assets on the consolidated balance sheets include security deposits related to the Company's operating leases, an equity investment, a derivative asset, and a prepaid expense. The balance is made up of the following as of December 31:

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| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Security deposit | $60488 | $52597 |
| Equity investment | 69560 | 69560 |
| Derivative asset | 56243 | 56243 |
| Prepaid expense |  | 29812 |
|  | $186291 | $208212 |

---

The equity investment of $69,560 is held at cost. There have been no impairment losses or observable price changes recognized for the years ended December 31, 2025 and 2024.

*Patents*

Expenditures for patent costs are charged to operations as incurred.

*Income Taxes*

Income taxes are recorded under the liability method. Deferred income taxes are provided for temporary differences between financial reporting and tax bases of assets and liabilities. Deferred tax assets are reduced by a valuation allowance to the extent the realization of the related deferred tax asset is not assured.

The Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than not threshold, the amount recognized in the consolidated financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority.

*Loss per Share*

Basic loss per share is computed by dividing net loss by the weighted average shares outstanding during the reporting period. The weighted average common shares outstanding were 308,748,911 and 223,999,081 for the years ended December 31, 2025 and 2024, respectively.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

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**NOTE 1** – **Summary of Significant Accounting Policies (cont.)**

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Dilutive net income (loss) per share assumes the exercise and issuance of all potential common stock equivalents in computing the weighted-average number of common shares outstanding, unless their effect is antidilutive. The computation of dilutive net income (loss) per share attributable to common stockholders assumes the potential dilutive effect of potential common stock, which includes common stock consisting of (a) stock options and warrants using the treasury stock method, and (b) convertible notes using the if-converted method. The effects of including incremental shares associated with stock options, warrants, and convertible notes outstanding are anti-dilutive due to the net loss incurred and are not included in the diluted weighted average number of shares of common stock outstanding for the years ended December 31, 2025 and 2024.

The table below provides potentially dilutive securities not included in the calculation of the diluted net loss per share for the years ended December 31 because to do so would be anti-dilutive:

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| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Exercise of stock options | 38959160 | 31255170 |
| Conversion of convertible notes (related party) | 24763181 | 22427625 |
| Exercise of warrants | 5216158 | 5216158 |
| Total | 68938499 | 58898953 |

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*Foreign Currency Exchange Gains (Losses)*

As of December 31, 2025, the Company had cash accounts denominated in Euros and Australian dollars, accounts payable that are denominated in Australian dollars and Euros, lease liabilities denominated in Euros, and accounts receivable denominated in Euros and Hungarian forint. As of December 31, 2024, the Company had cash accounts denominated in Euros and Australian dollars, accounts payable that were denominated in Australian dollars, Euros, and Hungarian forint, lease liabilities denominated in Euros, and accounts receivable denominated in Euros and Hungarian forint. These assets and liabilities have been remeasured into U.S. dollars at year-end exchange rates. Foreign currency exchange gains of $1,509,925 and $197,867 for the years ended December 31, 2025 and 2024, respectively, are included in the consolidated statements of operations within other expense.

The increase in foreign currency exchange gain for the year ended December 31, 2025 compared to the year ended December 31, 2024 primarily reflects the effect of changes in the Australian dollar exchange rate on the Company's cash balances denominated in that currency. Consistent with this, the effect of foreign currency exchange rate changes on cash and cash equivalents reported in the consolidated statements of cash flows was $1,541,285 for the year ended December 31, 2025; this amount includes $819,371 of realized gains as of December 31, 2025.

*Revenue Recognition*

In order for an arrangement to be considered a contract, it must be probable that the Company will collect the consideration to which it is entitled for goods or services to be transferred. The Company then assesses the goods or services promised within the contract to determine whether each promised good or service is a performance obligation. Performance obligations are promises in a contract to transfer a distinct good or service to the customer that (i) the customer can benefit from on its own or together with other readily available resources, and (ii) is separately identifiable from other promises in the contract.

The Company determines the transaction price based on the amount of consideration the Company expects to receive for providing the promised goods or services in the contract. Consideration may be fixed, variable, or a combination of both.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

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**NOTE 1** – **Summary of Significant Accounting Policies (cont.)**

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At contract inception for arrangements that include variable consideration, the Company estimates the probability and extent of consideration it expects to receive under the contract utilizing either the most likely amount method or expected amount method, whichever best estimates the amount expected to be received. The Company then considers any constraints on the variable consideration and includes in the transaction price variable consideration to the extent it is deemed probable that a significant reversal in the amount of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is subsequently resolved.

The Company's product revenue is derived from sales of both capital equipment and single-use consumables used in iCMR-guided cardiac ablation procedures. Capital equipment includes the Company's systems such as the Advantage-MR EP Recorder/Stimulator System and NorthStar Mapping System as well as related third-party equipment, while consumables primarily comprise the Company's catheters, including the Vision-MR Ablation Catheter and Vision-MR Diagnostic Catheter, and related accessories.

For equipment and consumable product sales that contain a single performance obligation, the Company recognizes revenue when control is transferred to the customer. This occurs at a point in time when title to the goods and risk of loss transfers. The transaction price is based on invoice price, net of any variable consideration.

When accounting for a contract that contains multiple performance obligations, the Company must develop judgmental assumptions to determine the estimated standalone selling price ("SSP") for each performance obligation identified in the contract. The Company utilizes the observable SSP when available, which represents the price charged for the promised product or service when sold separately. When the SSP for the Company's products or services are not directly observable, the Company determines the SSP using relevant information available and applies suitable estimation methods including, but not limited to, the cost-plus margin approach. The Company then allocates the transaction price to each performance obligation based on the relative SSP and recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when (or as) control is transferred to the customer and the performance obligation is satisfied.

Revenue from service contracts is recognized over the contract period on a straight-line basis, as the customer benefits from the services throughout the service contract period.

Revenue is derived from both domestic and foreign countries. Sales tax and value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. Product sales include shipment and handling fees charged to customers. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of goods sold.

As of December 31, 2025, $129,794 of a contract's transaction price was allocated to an unsatisfied performance obligation. The Company expects to recognize the revenue related to these performance obligations during 2026.

*Royalties* 

On June 1, 2012, the Company licensed certain intellectual property to a customer which included a royalty of 3% of product sales, subject to a minimum of $50,000 per year through 2028. The minimum guaranteed royalties were recognized upon the execution of the license agreement as these proceeds were not variable consideration. The remaining minimum royalty payments to be received, less the portion which represents future interest expected to be received within 12 months is included in Accounts receivable and the amounts expected to be received in future periods beyond 12 months are included in Accounts receivable, long term. Any royalties received in the future which are more than the minimum guaranteed royalty will be recognized when they are earned.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

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**NOTE 1** – **Summary of Significant Accounting Policies (cont.)**

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*Consulting Revenue* 

The Company recognizes revenue for consulting over time using the "as invoiced" practical expedient, except for in certain instances where billings are made in advance of the satisfaction of performance obligations.

The Company did not recognize any consulting revenue during the year ended December 31, 2025. During the year ended December 31, 2024, the Company recognized consulting revenue of $115,749, including $60,000 related to work performed to develop a prototype version of the Company's catheter that is compatible with a GE Healthcare MRI system and $55,749 related to work performed with a research institution utilizing the Company's MRI scanner.

*Contract Liabilities*

In 2013, the Company licensed certain intellectual property to a customer in exchange for an upfront non-refundable license fee and milestone payments, which can total up to $7,000,000. The Company collected $6,000,000 of these milestone payments, including the non-refundable license fee, on or before October 2016. A total of $373,333 of this amount is deferred as of December 31, 2025 and 2024. The customer sold the portion of the business which held this license in May 2018, and the license has been assigned to the purchaser. The project is still on hold with no plans to work on final development during the next 12 months, and therefore, the contract liability is included in long-term liabilities as of December 31, 2025 and 2024.

The Company invoices its customers for product revenue and consulting revenue based on the billing schedules in its sales arrangements. Service contracts are billed in advance, prior to the services having been performed, and the associated deferred revenue is recognized over the term of the service contract period.

Amounts received prior to satisfying the above revenue recognition criteria are recorded as contract liabilities in the accompanying consolidated balance sheets, with the contract liabilities to be recognized beyond one year being classified as non-current contract liabilities. As of December 31, 2025 and 2024, the Company had total current and long-term contract liabilities of $1,119,788 and $1,158,052, respectively, of which $1,085,753 and $1,098,533 was included in long-term liabilities as of December 31, 2025 and 2024, respectively. As of December 31, 2025, the Company expects to recognize the balance included in long-term liabilities at an indeterminable time. The decrease in contract liabilities is due to recognition of revenue for completion of performance obligations that were included in contract liabilities at the beginning of the period.

The following table sets forth information related to the contract liabilities for the years ended December 31:

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| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Balance at January 1 | $1158052 | $1377662 |
| Decrease from revenue recognized for completion of performance obligations that were included in contract liabilities at the beginning of the period included in: |  |  |
| Product revenue |  | (166046) |
| Service revenue | (49529) | (24879) |
| Consulting revenue |  | (55749) |
| Increase for revenue deferred as the performance obligation has not been satisfied related to: |  |  |
| Service revenue | 11265 | 27064 |
| Balance at December 31 | $1119788 | $1158052 |

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

------

**NOTE 1** – **Summary of Significant Accounting Policies (cont.)**

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*Derivative Asset, Option Liabilities, and Warrant Liabilities*

The Capital Commitment Agreement ("Agreement") with GEM Global Yield LLC SCS ("GGY") (discussed further in Note 9) meets the definition of a derivative and was recorded upon issuance within other assets on the consolidated balance sheets at fair value. The derivative asset is revalued at each balance sheet date, with changes in fair value recorded on the consolidated statements of operations as other income or expense. The Company estimates the fair value of the asset using the Monte Carlo Simulation model.

Also in connection with the Agreement with GGY, the Company issued 5,700,000 options which were determined to qualify as liabilities in accordance with Accounting Standards Codification ("ASC") 480-10, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and Hedging. Additionally, the Company issued warrants in connection with the equity raises in August and October 2023 (Note 10), where 2,100,568 warrants were determined to qualify as liabilities due to the exercise price being denominated in a currency other than the Company's functional currency. The result of this accounting treatment is that the options and warrants are recorded upon issuance as a liability on the consolidated balance sheets at fair value and are revalued at each balance sheet date, with the change in fair value recorded in the consolidated statements of operations as other income or expense. The Company estimates the fair value of the liability using the Black-Scholes pricing model.

See **Notes 9 and 10** for further details and assumptions used in the Black-Scholes pricing model and Monte Carlo Simulation model.

S*tock*-*Based Compensation*

The Company measures and records compensation expense using the applicable accounting guidance for share-based payments related to equity awards granted to directors and employees. The fair value of stock options, including performance awards, without a market condition is estimated at the date of grant, using the Black-Scholes option-pricing model. The fair value of stock options with a market condition is estimated at the date of grant using the Monte Carlo Simulation model. The Black-Scholes and Monte Carlo Simulation valuation models incorporate assumptions as to stock price volatility, the expected life of options or awards, a risk-free interest rate, and dividend yield.

The Company's policy is to account for forfeitures as they occur and compensation expense is recognized on a straight-line basis over the vesting period for awards with service and market conditions; for awards with performance conditions, expense is recognized over the requisite service period for awards for which the performance condition is considered probable of being achieved. Compensation expense is recognized for all awards over the vesting period to the extent the employees or directors meet the requisite service requirements, whether or not the award is ultimately exercised. Conversely, when an employee or director does not meet the requisite service requirements and forfeits the award prior to vesting, any compensation expense previously recognized for the award is reversed.

See **Note 10** for further details and assumptions used in the Black-Scholes pricing model.

*Fair Value Measurement*

ASC 820, Fair Value Measurements, ("ASC 820") provides guidance on the development and disclosure of fair value measurements. Under this accounting guidance, fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

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**NOTE 1** – **Summary of Significant Accounting Policies (cont.)**

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The accounting guidance classifies fair value measurements in one of the following three categories for disclosure purposes:

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| | |
|:---|:---|
| Level 1: | Quoted prices in active markets for identical assets or liabilities. |
| Level 2: | Inputs other than Level 1 prices for similar assets or liabilities that are directly or indirectly observable in the marketplace. |
| Level 3: | Unobservable inputs which are supported by little or no market activity and values determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment or estimation. |

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The Company evaluates assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level at which to classify them for each reporting period. This determination requires significant judgments to be made by the Company.

The carrying value of financial assets and liabilities recorded at fair value is measured on a recurring or nonrecurring basis. Financial assets and liabilities measured on a non-recurring basis are those that are adjusted to fair value when a significant event occurs. The Company had no financial assets or liabilities carried and measured on a nonrecurring basis during the reporting periods. Financial assets and liabilities measured on a recurring basis are those that are adjusted to fair value each time a consolidated financial statement is prepared. The following tables present information about the Company's financial assets and liabilities measured at fair value on a recurring basis, based on the fair value hierarchy:

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| | | | | |
|:---|:---|:---|:---|:---|
|  | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2025 | As of December 31, 2025 |
|  | Level 1 | Level 2 | Level 3 | Total |
| Other Assets |  |  |  |  |
| Derivative asset | $- | $- | $56243 | $56243 |
| Total Other Assets | $- | $- | $56243 | $56243 |
| Current Liabilities |  |  |  |  |
| Current portion of convertible notes (related party) | $- | $- | $11745700 | $11745700 |
| Option liabilities | $- | $- | $3157717 | $3157717 |
| Total Current Liabilities | $- | $- | $14903417 | $14903417 |
| Long-term Liabilities |  |  |  |  |
| Convertible notes, net of current portion (related party) | $- | $- | $13268500 | $13268500 |
| Warrant liabilities | $- | $- | $1828677 | $1828677 |
| Total Long-term Liabilities | $- | $- | $15097177 | $15097177 |

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| | | | | |
|:---|:---|:---|:---|:---|
|  | As of December 31, 2024 | As of December 31, 2024 | As of December 31, 2024 | As of December 31, 2024 |
|  | Level 1 | Level 2 | Level 3 | Total |
| Other Assets |  |  |  |  |
| Derivative asset | $- | $- | $56243 | $56243 |
| Total Other Assets | $- | $- | $56243 | $56243 |
| Long-term Liabilities |  |  |  |  |
| Convertible notes, net of current portion (related party) | $- | $- | $19869700 | $19869700 |
| Option liabilities | $- | $- | $3135000 | $3135000 |
| Warrant liabilities | $- | $- | $1532067 | $1532067 |
| Total Long-term Liabilities | $- | $- | $24536767 | $24536767 |

---

The convertible notes (related party) (Note 7), the derivative asset and option liabilities (Note 9), and the warrant liabilities (Note 10) are recognized at fair value on a recurring basis at December 31, 2025 and 2024 and are all classified as Level 3. There have been no transfers between levels. The Company estimates the fair value of the asset or liabilities using the Monte Carlo Simulation model or Black-Scholes pricing model.

See **Notes 7, 9, and 10** for further details and assumptions used in the respective pricing model.

As of December 31, 2025 and 2024, the recorded values of cash and cash equivalents, prepaid expenses, accounts payable, and accrued expenses and other liabilities approximate their fair values due to the short-term nature of these items.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

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**NOTE 1** – **Summary of Significant Accounting Policies (cont.)**

------

*Estimates*

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

*Bioscience Innovation Grant*

In August 2023, the Company received a $1,158,000 grant from the North Dakota Department of Agriculture as part of the department's Bioscience Innovation Grant ("BIG") program. The grant money is obtained by submitting requests for reimbursement of specific expenses incurred to support the remaining approval process of the Company's products in the US. The grant program ended on June 30, 2025.

The Company has elected to account for the reimbursement as a government grant. U.S. GAAP does not currently include grant accounting guidance that is in effect related to transfers of assets from governments to business entities, therefore, the Company has elected to follow the grant accounting model in International Accounting Standard ("IAS") 20, Accounting for Government Grants and Disclosure of Government Assistance. In accordance with IAS 20, the Company cannot recognize any income from the grant until there is reasonable assurance (similar to the "probable" threshold in U.S. GAAP) that any conditions attached to the grant will be met and that the grant will be received. Once it is reasonably assured that the grant conditions will be met and that the grant will be received, grant income is recorded on a systematic basis over the periods in which the Company incurred the reimbursable expenses for which the grant is intended to compensate. Income from the grant can be presented as either other income or as a reduction in the expenses for which the grant was intended to compensate.

As of December 31, 2025 and 2024, BIG benefits of $0 and $177,057, respectively, were included in Prepaid expense and other current assets on the consolidated balance sheets. Income of $658,456 and $325,332 for the years ended December 31, 2025 and 2024, respectively, was included in government grant income on the consolidated statements of operations.

*Recently Adopted Accounting Pronouncements*

The Company considers the applicability and impact of all Accounting Standard Updates ("ASUs"). ASUs not discussed below were assessed and determined to be either not applicable or are expected to have minimal impact on the Company's consolidated financial statements and related notes.

In November 2023, the Financial Accounting Standards Board ("FASB") issued ASU 2023-07, *Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures*. The amendments in ASU 2023-07 improve the disclosures about a public entity's reportable segments and address requests from investors for additional, more detailed information about a reportable segment's expenses. The Company adopted this standard as of January 1, 2025. Adoption of the ASU did not materially impact the Company's consolidated financial statements. See Note 12 for further details.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

------

**NOTE 1** – **Summary of Significant Accounting Policies (cont.)**

------

In December 2023, the FASB issued ASU 2023-09, *Income Taxes (Topic 740): Improvements to Income Tax Disclosures* which requires more detailed income tax disclosures. The guidance requires entities to disclose disaggregated information about their effective tax rate reconciliation as well as expanded information on income taxes paid by jurisdiction. The disclosure requirements will be applied on a prospective basis, with the option to apply them retrospectively. The standard is effective for fiscal years beginning after December 15, 2024. The Company adopted this standard as of January 1, 2025, prospectively. Adoption of the ASU did not materially impact the Company's consolidated financial statements. See Note 11 for further details.

In May 2024, the FASB issued ASU 2024-01, *Compensation* – *Stock Compensation (Topic 718): Scope Application of Profits Interest Awards*, which adds an example that illustrates how an entity applies the scope guidance to determine whether a profits interest award should be accounted for as a share-based payment arrangement under ASC 718 or another accounting standard. The standard is effective for fiscal years beginning after December 15, 2024. The Company adopted this standard as of January 1, 2025. The adoption of ASU 2024-01 did not materially impact the Company's consolidated financial statements.

*Recent Accounting Pronouncements*

In November 2024, the FASB issued ASU 2024-03, *Income Statement* – *Reporting Comprehensive Income* – *Expense Disaggregation Disclosures (Subtopic 220-40)*. The amendment requires disaggregated disclosure of income statement expenses for public business entities ("PBEs"). The ASU does not change the expense captions an entity presents on the face of the income statement; rather, it requires disaggregation of certain expense captions into specified categories in disclosures within the footnotes to the consolidated financial statements. The standard is effective for fiscal years beginning after December 15, 2026. Early adoption is permitted. The Company is evaluating the disclosure requirements related to the new standard.

In November 2024, the FASB issued ASU 2024-04, *Debt* – *Debt with Conversion and Other Options (Subtopic 470-20)*, which amends ASC 470-20 to clarify the circumstances in which an entity is required to account for a settlement of a debt instrument as an induced conversion. The standard is effective for fiscal years beginning after December 15, 2025. Early adoption is permitted for all entities that have adopted the amendments in Update 2020-06. The Company is evaluating the disclosure requirements related to the new standard.

In July 2025, the FASB issued ASU 2025-05, *Financial Instruments* – *Credit Losses (Topic 326)*: Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient for entities estimated expected credit losses on current accounts receivable and current contract assets arising from transactions under Topic 606. The practical expedient permits an entity to assume current conditions as of the balance sheet date that do not change for the remaining life of the current accounts receivable and current contract assets. The standard is effective for fiscal years beginning after December 15, 2025, with early adoption permitted. The Company is currently assessing the potential impact of adopting this new guidance on our consolidated financial statements and related disclosures.

In December 2025, the FASB issued ASU 2025-11, *Interim Reporting (Topic 270): Narrow-Scope Improvements*, which clarifies interim disclosure requirements and the applicability of Topic 270, resulting in a consolidated list of all interim disclosures required by GAAP. The amendments include a disclosure principle that requires entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The standard is effective for interim periods within fiscal years beginning after December 15, 2027, for public business entities, with early adoption permitted. The Company is currently assessing the potential impact of adopting this new guidance on our interim consolidated financial statements and related disclosures.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

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**NOTE 2** – **Liquidity**

------

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities and commitments in the normal course of business.

At each reporting period, the Company evaluates whether conditions or events raise substantial doubt about its ability to continue as a going concern for one year after the date that the consolidated financial statements are available to be issued. In performing this evaluation, management considers the Company's current financial condition, results of operations, cash flows, contractual obligations, and its ability to obtain additional financing if needed.

As disclosed in the Company's financial statements for the year ended December 31, 2024, management concluded that substantial doubt existed about the Company's ability to continue as a going concern due to recurring operating losses, negative cash flows from operations, and the need to secure additional financing to fund operations beyond the then-current cash runway. Since December 31, 2024, the Company completed an equity raise which resulted in net proceeds of $42,827,577 (see Note 10), which has materially improved its liquidity and extended its projected cash runway.

For the year ended December 31, 2025, the Company incurred net losses of $25,318,562, and negative cash flows from operating activities of $19,081,157. As of December 31, 2025, the Company had working capital of $25,546,042. Current liabilities include the current portions of the Company's convertible notes (related party) and option liabilities, which are recorded at fair value in accordance with ASC 825 and ASC 815, respectively, and their carrying amounts may differ significantly from the contractual principal and interest or other cash obligations associated with settling these instruments. See Note 7 for disclosure of the contractual principal and interest outstanding on the Company's convertible notes (related party) as of December 31, 2025.

Management has evaluated the principal conditions affecting the Company's liquidity, including recurring operating losses, negative cash flows, and contractual obligations due within the next 12 months. Based on this evaluation, management has concluded that the Company's existing working capital is sufficient to fund its operations for at least the 12-month period following the date these consolidated financial statements are available to be issued.

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**NOTE 3** – **Accrued Expenses**

------

As of December 31, accrued expenses consisted of the following:

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Compensation | $917553 | $896715 |
| Other accruals | 702401 | 596380 |
|  | $1619954 | $1493095 |

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

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**NOTE 4** – **Property and Equipment**

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As of December 31, property and equipment consisted of the following:

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Office furniture and equipment | $329106 | $249399 |
| Lab and production equipment | 2563189 | 2416607 |
| Computer equipment | 303145 | 241067 |
| MRI scanner | 1200000 | 1200000 |
| Leasehold improvements | 1641837 | 1641837 |
|  | 6037277 | 5748910 |
| Less: accumulated depreciation and amortization | (4498817) | (3870159) |
|  | $1538460 | $1878751 |

---

Depreciation and amortization expense was $798,715 and $748,165 for the years ended December 31, 2025 and 2024, respectively.

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**NOTE 5** – **Leases**

------

*Operating Leases*

The Company leases office, manufacturing, and laboratory space in Burnsville, Minnesota under operating leases expiring at various dates through 2030. The Company's office and manufacturing facility (Gateway) lease commenced in March 2007, was originally set to expire in July 2014, and has been amended and extended over time, most recently in 2022, resulting in a current lease term through March 2027. The Company's office and laboratory facility (Design Center) lease commenced in January 2019, was originally set to expire in March 2026, and was amended in 2020 to extend the term through May 2030. Neither facility lease includes renewal or extension rights. For each facility lease, the landlord provided leasehold improvement incentives that reduced the Company's initial right-of-use asset. Both facility lease agreements require the Company to pay a pro rata portion of the lessor's actual operating expenses, which are considered variable lease costs.

The Company has also entered into operating leases for vehicles with contractual terms expiring at various dates through November 2028. Vehicle lease payments are fixed and do not include renewal or purchase options, and related costs are included in operating lease expense.

As the leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of the lease payments. As of December 31, 2025 and 2024, the weighted average remaining lease term on operating leases was 3.6 and 4.5 years, respectively, and the weighted average discount rate was 5.8% and 5.6%, respectively. For the years ended December 31, 2025 and 2024, the operating cash outflows from operating leases was $328,728 and $307,842 respectively.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

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**NOTE 5** – **Leases (cont.)**

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As of December 31, 2025, maturities of the Company's operating lease liabilities are as follows:

---

| | |
|:---|:---|
| 2026 | $363140 |
| 2027 | 247023 |
| 2028 | 191217 |
| 2029 | 178359 |
| 2030 | 75228 |
| Total lease payments | 1054967 |
| Less: interest | (103771) |
| Present value of lease liabilities | 951196 |
| Less: current portion | (317153) |
| Operating lease liability, net of current portion | $634043 |

---

The cost components of the Company's operating leases for office and manufacturing space, which were included in general and administrative expenses on the consolidated statements of operations, were as follows for the years ended December 31, 2025 and 2024:

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| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Operating lease cost | $228426 | $228426 |
| Variable lease cost | 173807 | 156450 |
|  | $402233 | $384876 |

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*Finance Lease Liability*

The Company had a finance lease agreement related to its MRI scanner under which the Company obtained ownership of the scanner at the end of the lease term. During the year ended December 31, 2024, the Company paid $67,159 under this finance lease, of which $1,160 represented interest, and as of December 31, 2024, there were no remaining payments outstanding.

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**NOTE 6** – **Commitments and Contingencies**

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*Vendor concentration*

Certain components and products that meet the Company's requirements are available only from a single supplier or a limited number of suppliers. The inability to obtain components and products as required, or to develop alternative sources, if and as required in the future, could result in delays or reductions in product shipments, which in turn could have a material adverse effect on the Company's business, financial condition, and results of operations. The Company believes that it will be able to source alternative suppliers or materials if required to do so.

For the year ended December 31, 2025, the Company had accounts payable to two vendors that each accounted for 12% of the total outstanding balance. For the year ended December 31, 2024, the Company had accounts payable to two vendors that accounted for 14% and 13% of the total outstanding balance.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

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**NOTE 6** – **Commitments and Contingencies (cont.)**

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*Purchase Commitments*

At December 31, 2025 and 2024, the Company had $218,912 and $366,675, respectively, in outstanding firm purchase commitments for raw materials inventory and prototype components used in research and development activities. As of December 31, 2025, payment of the purchase commitments is expected to be made within one year. During the years ended December 31, 2025 and 2024, the Company purchased $324,805 and $109,767, respectively, under firm purchase commitments outstanding at the beginning of the respective year.

*Financing Obligation*

The Company entered into an agreement to finance a portion of an annual insurance premium for the policy period beginning August 2024. The financing obligation was to be paid in 10 monthly installments of $35,665 beginning in September 2024, and the stated interest rate was 7.91%. As of December 31, 2025, there were no payments remaining to be paid.

*Retirement Plan*

The Company maintains retirement plans for its employees in which eligible employees can contribute a percentage of their compensation. The Company contributed $333,897 and $269,541 to these plans during the years ended December 31, 2025 and 2024, respectively.

*Employment Agreements*

The Company has employment agreements with the CEO and certain senior executives of the Company. The agreements require severance of twelve and six months, respectively, of current annual salary and medical insurance in the event employment is terminated without cause.

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**NOTE 7** – **Convertible Notes with Warrants (related party)**

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On December 16, 2022, the Company entered into a Securities Purchase Agreement with K.A.H.R. Foundation, a beneficial owner of more than 5% of the Company's common stock as of the agreement date (see Note 13), for the issuance of unsecured, unquoted convertible promissory notes, to be issued in two tranches, to raise a maximum aggregate amount of $5,000,000.

The first tranche was issued on December 23, 2022. The Company received $2,325,000 in gross proceeds from the issuance of the convertible note. The convertible note bears interest of 10% per annum, compounded annually. The interest accrued during the years ended December 31, 2025 and 2024 was $281,942 and $256,311, respectively. As of December 31, 2025 and 2024, cumulative accrued interest on the first tranche totaled $776,358 and $494,416, respectively. All or a portion of the principal is convertible into CHESS Depositary Interests ("CDIs", as described further in Note 10) at a price of $0.2691 per share at the election of the holder following the 36 month anniversary of the closing date. All or a portion of accrued and unpaid interest is convertible into CDIs at a price of $0.2563 per share at the election of the holder during the same time frame. Accrued interest on the convertible notes is included in the fair value of the convertible notes on the consolidated balance sheets. The maximum number of CDIs to be issued upon conversion of the principal amount and interest is no more than 12,849,949 CDIs. As of December 31, 2025, 11,669,009 CDIs would be issued if the principal and accrued interest were converted.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

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**NOTE 7** – **Convertible Notes with Warrants (related party) (cont.)**

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The second tranche was issued on March 28, 2023. The Company received $2,675,000 of gross proceeds from the issuance of the convertible note. The second tranche is subject to the same terms as the first tranche. The interest accrued during the years ended December 31, 2025 and 2024 was $316,661 and $287,874, respectively. As of December 31, 2025 and 2024, cumulative accrued interest on the second tranche totaled $808,275 and $491,614, respectively. The maximum number of CDIs to be issued upon conversion of the principal and interest is no more than 14,784,350 CDIs. As of December 31, 2025, 13,094,172 CDIs would be issued if the principal and accrued interest were converted.

The maturity date on the notes is the earliest occurrence of (i) a change-in-control event, at which time the Company would be required to pay the holder the greater of 125% of the then outstanding balance plus accrued and unpaid interest or the amount the holder would receive if the principal and accrued and unpaid interest had been converted to CDIs at a conversion price equal to the variable weighted average price ("VWAP") of the CDIs for the 10 day period ending on the change-in-control event date; or (ii) the four year anniversary of the closing date of each tranche.

On March 28, 2023 and December 23, 2022, pursuant to the Securities Purchase Agreement, the Company issued warrants exercisable for 1,043,699 and 907,141 CDIs, respectively, with an exercise price of $0.2563 per share. The warrants expire five years after the dates of issuance.

The Company accounts for its convertible promissory notes under ASC 815, Derivatives and Hedging ("ASC 815"). Under 815-15-25, the election can be made at the inception of a financial instrument to account for the instrument under the fair value option under ASC 825. The Company has made such election for its convertible promissory notes. Using the fair value option, the convertible promissory notes are required to be recorded at its initial fair value on the date of issuance, and each balance sheet date thereafter. Changes in the estimated fair value of the notes are recognized as a non-cash item in the change in fair value of convertible notes (related party) in the consolidated statements of operations.

The convertible notes (related party) were recorded as a liability on the consolidated balance sheets at the dates of issuance. The following table provides a summary of change in fair value of the two tranches of the convertible notes (related party) for the years ended December 31:

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| | | | |
|:---|:---|:---|:---|
|  | Total | Tranche 1 | Tranche 2 |
| Fair value at December 31, 2023 | $8453300 | $3964800 | $4488500 |
| Fair value change in convertible notes (related party) | 11416400 | 5305100 | 6111300 |
| Fair value at December 31, 2024 | $19869700 | $9269900 | $10599800 |
| Fair value change in convertible notes (related party) | 5144500 | 2475800 | 2668700 |
| Fair value at December 31, 2025 | $25014200 | $11745700 | $13268500 |

---

As of December 31, 2025, the Company had total convertible notes (related party) of $25,014,200 of which $13,268,500 was included in long-term liabilities as of December 31, 2025. The entire convertible notes (related party) balance was included in long-term liabilities as of December 31, 2024.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

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**NOTE 7** – **Convertible Notes with Warrants (related party) (cont.)**

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The fair value of the convertible notes is measured in accordance with ASC 820 "Fair Value Measurement" using the "Monte Carlo Method" modeling incorporating the following inputs:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, |
|  | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 |
| Expected dividend yield |  | 0% |  |  | 0% |  |
| Expected stock-price volatility | 66.0% |  | 72.1% | 88.1% |  | 89.4% |
| Risk-free interest rate | 3.42% |  | 3.43% | 4.16% |  | 4.17% |
| Stock price |  | $1.0210 |  |  | $0.8416 |  |
| Conversion price |  | $0.2691 |  |  | $0.2691 |  |

---

Significant assumptions used to determine the fair value of the convertible note include the estimated probability of a change in control event, which is based on management's expectation of future transactions; the volatility of the stock price, which is estimated based on the Company's own historical volatility; and the credit spread, which is based on the Company's estimate of its credit rating derived from the Company's financial condition and market yields for similar instruments issued by companies with comparable credit ratings.

The Company evaluated the warrants under ASC 480, "Distinguishing Liabilities from Equity" and ASC 815. The warrants do not meet the characteristics for liability classification under either provision and as such are classified as equity under ASC 815. Given that the convertible notes were subject to fair value remeasurement, the fair value of the convertible notes was carved out from gross proceeds and the remainder of the gross proceeds of the first and second tranches of $127,900 and $541,200, respectively, was allocated to warrants. The warrants were recorded as Additional paid-in capital on the consolidated balance sheets at the dates of issuance. No subsequent remeasurement of the warrants is required.

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**NOTE 8** – **Promissory Notes**

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*LIFT Loan*

On January 6, 2023, the Company obtained a $1,500,000 loan from the Bank of North Dakota under the North Dakota Commerce Department's Innovation Technology Loan Fund ("LIFT"). The loan matures in five years and has an interest rate of 0% for the first three years and 2% for the next two years of the loan, with monthly interest payments due. The outstanding loan balance is due at maturity on January 6, 2028. The Company had an 18-month draw period through July 2024, during which it drew $33,219. The balance was paid in full during the year ended December 31, 2024, and no amounts were outstanding under the LIFT loan as of December 31, 2025 or 2024.

The loan included certain restrictions on the use of the funds. The Company could use the funding only to conduct applied research, experimentation, or operational testing within the state of North Dakota. The funds could not be used for capital or building investments or for general corporate purposes to support existing operations outside the state of North Dakota.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

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**NOTE 8** – **Promissory Notes (cont.)**

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*GGY Promissory Note*

As part of the Agreement with GGY (discussed further in Note 9), the Company entered into a promissory note to pay GEM Yield Bahamas Limited a fee equal to two percent of the capital commitment facility, being $600,000 Australian dollars ($399,660 U.S. dollars at issuance date). The fee was payable, whether or not any draw down notices were delivered, within the first year of the Agreement's term. In the event the fee was not paid in full within the first year, interest would accrue on the unpaid portion at the Mortgage Free Business Finance Rate published by Westpac Banking Corporation, compounded monthly. The promissory note was revalued at each reporting date. The Company paid the remaining balance on the note, along with accrued interest of $3,103, during the year ended December 31, 2024.

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**NOTE 9** – **Capital Commitments** 

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On July 6, 2023, the Company entered into a Capital Commitment Agreement ("Agreement") with GEM Global Yield LLC SCS ("GGY"), under the terms of which GGY has agreed to provide the Company with up to $30 million Australian dollars through a Security Subscription Facility (the "Facility") over a 3-year term. The Agreement allows the Company to draw down funds during the 3-year term by giving GGY 15 Australian Securities Exchange ("ASX") trading days' notice to subscribe for CDIs, subject to share lending arrangement(s) being in place. The number of CDIs which GGY may subscribe for is capped at 700% of the average daily number of CDIs traded on the ASX during the 15 trading days prior to the relevant drawdown notice, subject to certain adjustments. The subscription price of the CDIs to be issued to GGY is the higher of (i) 90% of the average closing bid price of the Company's CDIs over the 15 consecutive trading days after the Company gives the drawdown notice, subject to certain adjustments; or (ii) a fixed floor price nominated by the Company in the drawdown notice. The Company controls the timing of drawdowns under the Facility and has no minimum drawdown obligation. The issue of CDIs to GGY pursuant to any drawdown notice will also be conditional on the Company having sufficient placement capacity under ASX Listing Rules 7.1 or 7.1A (as applicable) or obtaining any requisite securityholder approval for the issue.

The Agreement meets the definition of a derivative in accordance with ASC 815 and is measured at fair value. Any changes in fair value of such instruments are recorded in other income (expense) in the consolidated statements of operations. There was no change in fair value of the derivative asset for the years ended December 31, 2025 or 2024.

The derivative asset's fair value was calculated using the Monte Carlo Simulation model utilizing the following assumptions:

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| | |
|:---|:---|
| Expected stock-price volatility | 104.1% |
| Risk-free interest rate | 4.03% |
| Stock price (in Australian dollars) | $0.57 |

---

These key assumptions used in the valuation have remained unchanged since December 31, 2023 and were also used in determining the fair value of the derivative asset as of December 31, 2025 and 2024.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

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**NOTE 9** – **Capital Commitments (cont.)**

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Pursuant to the terms of the Agreement, the Company issued options to purchase 5,700,000 CDIs with an exercise price of $0.61 Australian dollars per CDI and a 3-year term.

No CDI Options were exercised during the year ended December 31, 2024. A summary of activity related to the CDI Options during the year ended December 31, 2025 is as follows:

CDI Options outstanding at December 31, 2024 5,700,000 <br> Exercise of CDI Options (648,461) <br> CDI Options outstanding at December 31, 2025 5,051,539

The following table provides a summary of the change in fair value of the CDI Options for the years ended December 31, 2025 and 2024:

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| | |
|:---|:---|
| Fair value at December 31, 2023 | $1292760 |
| Fair value change in CDI Options | 1842240 |
| Fair value at December 31, 2024 | 3135000 |
| Exercise of CDI Options | (373774) |
| Fair value change in CDI Options | 396491 |
| Fair value at December 31, 2025 | $3157717 |

---

As of December 31, 2025, the fair value of the CDI Options of $3,157,717 is classified as short-term option liabilities on the consolidated balance sheets. As of December 31, 2024, the fair value of the CDI Options of $3,135,000 is classified as long-term option liabilities on the consolidated balance sheets.

The CDI Options' fair value was calculated using the Black-Scholes option pricing model utilizing the following assumptions:

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| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Expected dividend yield | 0% | 0% |
| Expected stock-price volatility | 59.2% | 85.4% |
| Risk-free interest rate | 3.97% | 3.97% |
| Stock price | $1.0240 | $0.8455 |
| Conversion price | $0.4083 | $0.3792 |

---

The fair value of CDI Options was determined using the Black-Scholes option pricing model with assumptions consistent in methodology to those used for stock options, except that the contractual life of the options is used as the expected term and volatility of the stock price is estimated based on the Company's own historical volatility.

Since issuance, the Company has drawn $444,922 Australian dollars on the Facility, and $29,555,078 Australian dollars is available as of December 31, 2025. Converted to U.S. dollars using the exchange rate of $1 Australian dollar to $0.67 U.S. dollar as of December 31, 2025, these amounts are $297,786 and $19,781,214, respectively.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

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**NOTE 10** – **Stockholders**' **Equity** 

------

*Capital Stock Authorized*

As of both December 31, 2025 and 2024, the Board of Directors of the Company had authorized 560,000,000 shares of capital stock, consisting of 535,000,000 shares of common stock and 25,000,000 shares of preferred stock.

*Common Stock*

The Australian Securities Exchange ("ASX") uses an electronic system called CHESS for the clearance and settlement of trades on the ASX. The State of Delaware does not recognize the CHESS system of holding securities or electronic transfers of legal title to shares. To enable companies to have their securities cleared and settled electronically through CHESS, depositary instruments called CHESS Depositary Interests ("CDIs") are issued. CDIs are units of beneficial ownership in shares and are traded in a manner similar to shares of Australian companies listed on the ASX. The legal title to the shares is held by a depositary, CHESS Depositary Nominees Pty Ltd ("CDN"), which is a wholly-owned subsidiary of the ASX, and is an approved general participant of ASX Settlement. One share of common stock is equivalent to one CDI.

In February 2024, the Company completed a placement and institutional entitlement offer with a mix of U.S. and Australian investors which consisted of 3,766,666 shares of common stock at $0.30 per share for U.S. investors and 14,069,396 CDIs at $0.45 Australian dollars per share for Australian investors for proceeds of $4,823,937, net of expenses.

The Company also completed a retail entitlement offer with Australian investors, which consisted of 1,419,069 CDIs at $0.45 Australian dollars per share for proceeds of $389,888, net of expenses in February 2024, and 14,378,862 CDIs at $0.45 Australian dollars per share, for proceeds of $3,996,793, net of expenses, in April 2024.

In July and September 2024, the Company completed a two-tranche placement with a mix of Australian and U.S. investors, which consisted of 67,064,836 CDIs at $0.52 Australian dollars per share and 242,857 shares of common stock at $0.35 per share for U.S. investors for proceeds of $21,791,209, net of expenses.

In February 2025, a total of 163,935 CDI Options were exercised at $0.61 Australian dollars per share for total proceeds of $61,419, net of expenses.

In March 2025, the Company completed an equity raise with Australian investors which consisted of 49,645,391 CDIs at $1.41 Australian dollars per share for proceeds of $42,827,577, net of expenses.

In March 2025, a total of 340,000 CDI Options were exercised at $0.61 Australian dollars per share for total proceeds of $130,842, net of expenses.

In September 2025, a total of 356,150 options to purchase common stock were exercised at prices ranging from $0.31 to $0.52 per share for total proceeds of $180,922, net of expenses.

In October 2025, a total of 144,526 CDI Options were exercised at $0.61 Australian dollars per CDI for total proceeds of $56,160, net of expenses.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

------

**NOTE 10** – **Stockholders**' **Equity (cont.)**

------

*Dividend Rights*

Subject to the prior rights of holders of all classes of stock at the time outstanding having prior rights as to dividends, the holders of the common stock shall be entitled to receive, out of any assets of the Corporation legally available therefore, any dividends as may be declared from time to time by the Board of Directors. The right to such dividends shall not be cumulative, and no right shall accrue by reason of the fact that dividends are not declared in any prior period.

*Voting Rights*

The holder of each share of common stock shall have the right to one vote for each such share, and shall be entitled to notice of any stockholders' meeting in accordance with the Bylaws of the Corporation, and shall be entitled to vote upon such matters and in such manner as may be provided by law.

*Stock Option Plans*

The Company and its stockholders adopted a stock incentive plan (the "2006 Plan") in 2006. The 2006 Plan, as amended on January 26, 2011 by the stockholders, reserved 10,918,500 shares of the Company's common stock for the granting of incentive and nonqualified stock options to employees, directors and consultants. On May 22, 2016, the Company replaced the 2006 Plan with the 2016 Stock Option Plan (the "2016 Plan"), as the 2006 Plan was expiring. The terms of the 2016 Plan were the same as the 2006 Plan. In August 2018, the Board of Directors approved an increase of 500,000 shares to the option pool. On February 14, 2019, the Board of Directors terminated the 2016 Plan and approved the 2019 Equity Incentive Plan (the "2019 Plan"), reserving 11,418,500 shares of the Company's common stock for the granting of incentive and nonqualified stock options, or other stock-based awards, to employees, directors and consultants. On June 4, 2019, the Board of Directors approved an increase of 2,000,000 shares to the option pool and provided that on the first day of each of the Company's fiscal years during the term of the 2019 Plan beginning in 2020, the number of shares of Common Stock available for issuance from time to time under the 2019 Plan will be increased by an amount equal to the lesser of (i) five percent (5%) of the aggregate number of shares reserved under this Plan on the last day of the immediately preceding fiscal year, and (ii) such number of shares determined by the Board (the "Annual Increase"). On April 20, 2020, the Board of Directors approved an increase of 3,470,925 shares to the option pool, which was approved by the stockholders at the Annual Meeting on May 12, 2020. On January 14, 2021, the Board of Directors approved an increase of 844,471 shares to the option pool. On April 6, 2022, the Board of Directors approved an increase of 848,695 shares to the option pool. On April 4, 2023, the Board of Directors approved an increase of 7,929,130 shares to the option pool, which was approved by the stockholders at the Annual General Meeting on May 11, 2023. On February 14, 2024, the Board of Directors approved an increase of 6,488,279 shares to the option pool, which was approved by stockholders at the Annual Meeting on May 15, 2024. On February 17, 2025, the Board of Directors approved an increase of 7,650,000 shares to the option pool, which was approved by the shareholders at the Annual Meeting on May 14, 2025.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

------

**NOTE 10** – **Stockholders**' **Equity (cont.)**

------

Options are granted at a price equal to the closing sale price of a CDI as of the date of grant, converted from Australian dollars to U.S. dollars using the prevailing exchange rate. Generally, vesting terms of outstanding options range from immediate to four years. In addition, some options have been issued to the executive management team that vest upon completion of certain milestones, performance requirements, and market conditions; as of December 31, 2025, 24,914,305 of these options are issued and outstanding. For these performance-based awards, expense is recognized when it is probable the performance condition will be achieved. If at any point the Company determines that the performance condition is improbable, any previously recognized expense is reversed. Adjustments for forfeitures are recorded as they occur. In no event are the options exercisable for more than ten years after the date of grant. The Company issues new shares of common stock when stock options are exercised.

Information regarding the Company's stock options is summarized below:

---

| | | | |
|:---|:---|:---|:---|
|  |  | Weighted-Average | Aggregate |
|  | Number of | Exercise | Intrinsic |
|  | Option Shares | Price | Value |
| Options outstanding - December 31, 2024 | 25555170 | $0.42 |  |
| Exercised | (356150) | 0.51 |  |
| Forfeited | (41250) | 0.30 |  |
| Expired | (34100) | 0.50 |  |
| Granted | 8783951 | 1.06 |  |
| Options outstanding - December 31, 2025 | 33907621 | $0.58 | $15944060 |
| Options exercisable - December 31, 2025 | 6767066 | $0.66 | $2788732 |
| Weighted average fair value of options granted during the year ended December 31, 2025 |  | $0.82 |  |

---

---

| | | | |
|:---|:---|:---|:---|
|  |  | Weighted-Average | Aggregate |
|  | Number of | Exercise | Intrinsic |
|  | Option Shares | Price | Value |
| Options outstanding - December 31, 2023 | 16895981 | $0.47 |  |
| Exercised |  |  |  |
| Forfeited | (148750) | 0.53 |  |
| Expired | (115050) | 0.82 |  |
| Granted | 8922989 | 0.32 |  |
| Options outstanding - December 31, 2024 | 25555170 | $0.42 | $12066510 |
| Options exercisable - December 31, 2024 | 6349658 | $0.67 | $1585640 |
| Weighted average fair value of options granted during the year ended December 31, 2024 |  | $0.24 |  |

---

As of December 31, 2025, the Company had 581,340 shares available for grant under the Plan.

The weighted average remaining contractual life of options outstanding and exercisable was 7.37 and 4.29 years, respectively, as of December 31, 2025.

The intrinsic value of options exercised during the years ended December 31, 2025 and 2024 was $138,476 and $0, respectively.

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[**Table of Contents**](#toc)

IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

------

**NOTE 10** – **Stockholders**' **Equity (cont.)**

------

The fair value of option awards granted was determined using the Black-Scholes option pricing model utilizing the following assumptions:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 |
| Expected life (in years) | 5.32 |  | 6.82 | 5.32 |  | 6.32 |
| Volatility | 85.13% |  | 88.03% | 90.19% |  | 91.69% |
| Risk-free interest rate | 3.67% |  | 4.38% | 4.05% |  | 4.35% |
| Dividend yield |  | 0% |  |  | 0% |  |

---

The Company reviews its current assumptions on a periodic basis and adjusts them as necessary to determine the option valuation. The expected term reflects our estimate of the period over which the stock options will remain outstanding before exercise or expiration. As we do not have sufficient historical exercise data to provide a reasonable basis upon which to estimate the expected term, the expected term of stock option awards granted has been determined using the simplified method, which is the average of the weighted-average vesting period and the contractual term. Volatility is based on the Company's own historical volatility as well as historic volatilities of traded shares from a selected publicly traded peer group, believed to be comparable after consideration of size, maturity, profitability, growth, risk and return on investment. The risk-free interest rate is based on the yield of constant maturity U.S. treasury bonds with a remaining term equal to the expected life of the awards at the grant date. The expected dividend yield is zero, as the Company has not paid or declared any dividends to common stockholders and does not expect to pay dividends in the foreseeable future. The Company's policy is to account for forfeitures as they occur and records stock-based compensation expense only for those awards that are expected to vest.

Total stock-based compensation expense resulting from options is charged to the Company's consolidated statements of operations as follows:

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Cost of goods sold | $26117 | $11191 |
| Sales and marketing | 90642 | (593) |
| Research and development | 169103 | 24362 |
| General and administrative | 213621 | (27115) |
|  | $499483 | $7845 |

---

The negative sales and marketing and general and administrative stock-based compensation expense on the consolidated statements of operations during the year ended December 31, 2024 is due to a change in probability of achievement for certain performance grants that were previously considered probable. This change resulted in the reversal of expense already taken until achievement becomes probable, in accordance with ASC 718, Stock Compensation. No income tax benefits were recognized related to this compensation expense due to the full valuation allowance provided on the Company's deferred income tax assets.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

------

**NOTE 10** – **Stockholders**' **Equity (cont.)**

------

As of December 31, 2025, the total unrecognized compensation cost related to unvested stock options then outstanding was $10,959,913. Future stock-based compensation expense is expected to be as follows for the years ending December 31:

---

| | |
|:---|:---|
| 2026 | $501151 |
| 2027 | 345470 |
| 2028 | 168735 |
| 2029 | 41592 |
| Total related to options expected to vest | 1056948 |
| Performance grants not probable of achievement | 9902965 |
| Total unrecognized compensation expense | $10959913 |

---

The performance grants not probable of achievement are generally related to the receipt of regulatory approvals or sales milestones predicated on the receipt of regulatory approvals not yet received. Under current U.S. GAAP, these milestones are generally not considered probable until the regulatory approval is obtained.

Issuance of additional options subsequent to December 31, 2025 could affect future expected amounts.

*Restricted Stock*

On May 15, 2024, the Company granted 315,946 shares of restricted stock to its three independent board directors. The restricted stock vests annually over four years on the anniversary of the grant date, provided that the participant continuously provides services to the Company through the applicable vesting date. The fair market value on the date of grant was $0.30 per share.

On May 14, 2025, the Company granted 121,260 shares of restricted stock to its three independent board directors. The restricted stock vests annually on the anniversary of the grant date, provided that the participant continuously provides services to the Company through the applicable vesting date. The fair market value on the date of grant was $1.07 per share.

A summary of activity related to time-based nonvested restricted stock grants during 2025 and 2024 is as follows:

---

| | | |
|:---|:---|:---|
|  |  | Weighted Average |
|  | Nonvested | Grant Date |
|  | Restricted Shares | Fair Value |
| Outstanding as of December 31, 2023 | 751812 | $0.22 |
| Granted | 315946 | 0.30 |
| Vested | (206597) | 0.22 |
| Forfeited |  |  |
| Outstanding as of December 31, 2024 | 861161 | $0.25 |
| Granted | 121260 | 1.07 |
| Vested | (285583) | 0.24 |
| Forfeited |  |  |
| Outstanding as of December 31, 2025 | 696838 | $0.39 |

---

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[**Table of Contents**](#toc)

IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

------

**NOTE 10** – **Stockholders**' **Equity (cont.)**

------

Total stock-based compensation expense resulting from grants of restricted stock was $90,128 and $60,924 for the years ended December 31, 2025 and 2024, respectively, and is included in general and administrative expenses on the consolidated statements of operations. No income tax benefits were recognized related to this compensation expense due to the full valuation allowance provided on the Company's deferred income tax assets.

As of December 31, 2025, the total unrecognized compensation cost related to unvested restricted stock was $206,980. Future unrecognized stock-based compensation expense is expected to be as follows for the years ended December 31 thereafter:

---

| | |
|:---|:---|
| 2026 | $88593 |
| 2027 | 65160 |
| 2028 | 41327 |
| 2029 | 11900 |
| Total | $206980 |

---

Issuance of additional shares of restricted stock subsequent to December 31, 2025 could affect future expected amounts.

*Warrants*

As part of the convertible notes (related party) issuances in 2022 and 2023 and the equity raises in 2023, the Company issued warrants to purchase common stock or CDIs which are summarized below:

---

| | | |
|:---|:---|:---|
|  | Number of<br> Warrants | Weighted-Average<br> Exercise Price |
| Warrants outstanding - December 31, 2023 | 5216158 | $0.4742 |
| Warrants issued |  |  |
| Warrants exercised |  |  |
| Warrants expired/forfeited |  |  |
| Warrants outstanding - December 31, 2024 | 5216158 | $0.4742 |
| Warrants issued |  |  |
| Warrants exercised |  |  |
| Warrants expired/forfeited |  |  |
| Warrants outstanding - December 31, 2025 | 5216158 | $0.4742 |
| Warrants exercisable - December 31, 2025 and 2024 | 5216158 | $0.4742 |

---

The warrants issued in connection with the equity raises were evaluated under ASC 480 and ASC 815. Of the 3,265,318 warrants issued in connection with the equity raises, 2,100,568 were determined to qualify as liabilities due to the exercise price being denominated in a currency other than the Company's functional currency, while the remaining 1,164,750 do not meet the characteristics for liability classification under either provision and as such are classified as equity under ASC 815. The warrants expire ten years after the dates of issuance. In addition, the Company has 1,950,840 warrants outstanding that were issued in connection with the convertible notes (related party) issuances, which are classified as equity under ASC 815. See Note 7 for further details.

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[**Table of Contents**](#toc)

IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

------

**NOTE 10** – **Stockholders**' **Equity (cont.)**

------

Any subsequent changes in fair value of warrants classified as a liability have been recorded in change in fair value of warrant liabilities in the consolidated statements of operations. The following table provides a summary of change in fair value of the warrants classified as a liability for the year ended December 31, 2025 and 2024:

---

| | |
|:---|:---|
| Fair value at December 31, 2023 | $652516 |
| Fair value change in warrants | 879551 |
| Fair value at December 31, 2024 | 1532067 |
| Fair value change in warrants | 296610 |
| Fair value at December 31, 2025 | $1828677 |

---

As of December 31, 2025 and 2024, the fair value of the warrants of $1,828,677 and $1,532,067, respectively, are classified as warrant liabilities on the consolidated balance sheets.

The fair value of the warrants was determined using the Black-Scholes option pricing model utilizing the following assumptions:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
|  | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, |
|  | 2025 | 2025 | 2025 | 2024 | 2024 | 2024 |
| Expected dividend yield |  | 0% |  |  | 0% |  |
| Expected stock-price volatility | 85.3% |  | 85.5% | 85.9% |  | 86.1% |
| Risk-free interest rate |  | 4.60% |  |  | 4.37% |  |
| Stock price |  | $1.0240 |  |  | $0.8455 |  |
| Conversion price | $0.6358 |  | $0.6693 | $0.5906 |  | $0.6217 |

---

The fair value of warrants was determined using the Black-Scholes option pricing model with assumptions consistent in methodology to those used for stock options, except that the contractual life of the warrant is used as the expected term.

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**NOTE 11** – **Income Taxes** 

------

As of December 31, 2025, the Company had generated approximately $116,363,000 of net operating losses ("NOL") for federal tax purposes. As a result of the Tax Cuts and Jobs Act, for U.S. income tax purposes, NOLs generated prior to December 31, 2017 can still be carried forward for up to 20 years, while NOLs generated after December 31, 2017 carryforward indefinitely, but are limited to 80% utilization against taxable income. Of the total federal NOL of $116,363,000, $18,662,000 will begin to expire in 2028 through 2037, and $97,701,000 will not expire but will only offset 80% of future taxable income.

As of December 31, 2025, the Company had also generated approximately $36,931,000 of state NOLs. The state NOLs can be carried forward for up to 15 years and are limited to 80% utilization against taxable income. The state NOLs will begin to expire in 2026 through 2039 if they are not used.

As of December 31, 2025, the Company had approximately $2,458,000 of federal research and development ("R&D") credit carryforwards available for federal tax purposes. As of December 31, 2025, the Company also had approximately $1,293,000 of state R&D credit carryforwards available for Minnesota. The federal R&D credits carryforwards will begin to expire in 2028 through 2037, and the state R&D credits carryforwards will begin to expire in 2028 through 2039, if they are not used.

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IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

------

**NOTE 11** – **Income Taxes (cont.)**

------

In assessing the realizability of deferred tax assets as of December 31, 2025 and 2024, the Company determined it is more likely than not that its net deferred tax assets will not be realized and the Company continues to maintain a valuation allowance for the full amount of the deferred tax assets.

Pursuant to Sections 382 and 383 of the Internal Revenue Code of 1986, as amended (the "Code"), annual use of the Company's NOLs and R&D credit carryforwards may be limited if there is a cumulative change in ownership of greater than 50% within a three-year period. The amount of annual limitation is determined based on the value of the Company immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. If sufficiently limited, the related tax assets would be removed from the deferred tax asset schedule with a corresponding reduction in the valuation allowance.

In 2023, the Company completed an analysis of past equity offerings, and other transactions that had an impact on the Company's ownership structure, for potential ownership changes under Sections 382 and 383 of the Code and concluded that the Company experienced ownership changes in 2009, 2011 and 2020. The analysis determined that there were limitations on the amount of pre-ownership change NOL carryforwards that can be utilized annually to offset future taxable incomes.

In 2024 and 2025, the Company completed an analysis of equity offerings during the respective years, and other transactions that have an impact on the Company's ownership structure, for potential ownership changes under Sections 382 and 383 of the Code and concluded no ownership changes were experienced during either year. The Company may experience subsequent ownership changes as a result of future equity offerings or other changes in the ownership of Company stock, some of which are beyond the Company's control. Similar provisions of state tax law may also apply to limit the use of accumulated state tax attributes.

The Company conducts intensive research and experimentation activities, generating R&D tax credits for Federal and state purposes under Section 41 of the Code. The Company has not performed a formal study validating these credits claimed in the tax returns. Once a study is prepared, the amount of R&D tax credits available could vary from what was originally claimed on the tax returns.

Net loss from operations before income tax expense (benefit) for the year ended December 31:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| U.S. | $(25036699) | $(29692831) |
| Foreign | (281863) |  |
| Total | $(25318562) | $(29692831) |

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[**Table of Contents**](#toc)

IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

------

**NOTE 11** – **Income Taxes (cont.)**

------

Income tax expense (benefit) consists of the following for the years ended December 31:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Current: |  |  |
| Federal | $- | $- |
| State |  |  |
| Foreign |  |  |
| Deferred: |  |  |
| Federal | (5271000) | (6686000) |
| State | (121000) | (260000) |
| Foreign | (73000) |  |
|  | (5465000) | (6946000) |
| Deferred tax asset valuation allowance | 5465000 | 6946000 |
| Total provision (benefit) | $- | $- |

---

The Company paid no income taxes during the years ended December 31, 2025 and 2024 due to net operating losses.

The provision for income taxes differs from the tax computed using the statutory U.S. federal income tax rate of 21% for the year ended December 31, 2025, as a result of the following items:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2025 |
|  | Amount | Percent |
| U.S. federal statutory income tax rate | $(5317000) | 21.0% |
| Domestic federal |  |  |
| Tax Credits |  |  |
| Research and development credits, net | (480000) | 1.9% |
| Other | 50000 | -0.2% |
| Nontaxable and nondeductible items | 41000 | -0.2% |
| Changes in valuation allowance | 5296000 | -20.9% |
| Changes in tax rates enacted in the current period |  | 0.0% |
| Other | 251000 | -1.0% |
| Domestic state and local income taxes, net of federal effect | (39000) | 0.2% |
| Foreign tax effects | 59000 | -0.2% |
| Changes in unrecognized tax benefits | 139000 | -0.5% |
| Net deferred tax assets (liabilities) | $- | 0.00% |

---

State and local income taxes relate primarily to Minnesota income taxes, net of federal effect. Minnesota comprises substantially all of the state tax effect for the year ended December 31, 2025.

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[**Table of Contents**](#toc)

IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

------

**NOTE 11** – **Income Taxes (cont.)**

------

The provision for income taxes differs from the tax computed using the statutory U.S. federal income tax rate of 21% for the year ended December 31, 2024, as a result of the following items:

---

| | |
|:---|:---|
|  | 2024 |
| Tax at U.S. statutory rate | $(6235000) |
| State tax expense, net of federal benefit | (393000) |
| Permanent items and other | (87000) |
| R&D credits, net | (205000) |
| Fair value change in convertible notes (related party) | (194000) |
| Change in tax rate | 168000 |
| Change in valuation allowance | 6946000 |
| Income tax expense | $- |

---

Components of deferred income taxes are as follows as of December 31:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Deferred tax assets: |  |  |
| Net operating loss carryforwards | $27368000 | $22204000 |
| Research and development credit carryforwards | 3480000 | 3010000 |
| Section 174 Capitalization of R&D | 2080000 | 3333000 |
| Stock-based compensation | 237000 | 360000 |
| Accrued expenses | 213000 | 291000 |
| Deferred revenue | 246000 | 254000 |
| Fixed assets | 447000 | 352000 |
| Fair value change of financial instruments | 5503000 | 4330000 |
| Prepaid expenses and other assets | 55000 |  |
| Gross deferred tax assets | 39629000 | 34134000 |
| Valuation allowance | (39472000) | (34007000) |
| Deferred tax assets, net | 157000 | 127000 |
| Deferred tax liabilities: |  |  |
| Prepaid expenses and other assets |  | 47000 |
| Foreign currency exchange | 157000 | 80000 |
| Gross deferred tax liabilities | 157000 | 127000 |
| Net deferred tax assets (liabilities) | $- | $- |

---

Due to net losses since inception and the uncertainty of realizing the deferred tax assets, the Company has a full valuation allowance against its net deferred tax assets. To the extent that the Company generates positive income and expects, with reasonable certainty, to continue to generate positive income, the Company may release all, or a portion of, the valuation allowance in a future period. This release would result in the recognition of all, or a portion of, the Company's deferred tax assets, resulting in a decrease to income tax expense for the period such release is made.

The following table sets forth information related to the valuation allowance as of and for the years ended December 31:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Balance at January 1 | $34007000 | $27061000 |
| Additions charged to income tax benefit | 5465000 | 6946000 |
| Balance at December 31 | $39472000 | $34007000 |

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[**Table of Contents**](#toc)

IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

------

**NOTE 11** – **Income Taxes (cont.)**

------

The following table sets forth information related to the unrecognized tax benefits as of and for the years ended December 31:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Balance at January 1 | $810000 | $723000 |
| Additions based on current year tax positions | 139000 | 87000 |
| Balance at December 31 | $949000 | $810000 |

---

The Company's unrecognized tax benefits are netted against the underlying deferred tax assets. As of December 31, 2025 and 2024, none of the unrecognized tax benefits, if recognized, would affect the effective tax rate due to the full valuation allowance maintained against the Company's deferred tax assets.

The Company files income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. The tax years from 2008 through December 31, 2025 remain subject to examination by all major taxing authorities due to the net operating loss carryforwards. The Company is not currently under examination by any taxing jurisdiction. The Company has elected to record the income taxes and any related interest and penalties as income tax expense in the Company's consolidated statements of operations.

Changes in tax laws and rates may affect recorded deferred tax assets and liabilities and the Company's effective tax rate in the future. On July 4, 2025, the One, Big, Beautiful Bill Act (the "Act") was signed into law. The Act contains significant tax law changes with various effective dates affecting business taxpayers, including making permanent the current 21% U.S. federal corporate income tax rate and modifying the timing of certain tax deductions, such as depreciation expense, research and development expenditures, and interest expense. The Company implemented the provisions of the Act in its income tax accounting for the year ended December 31, 2025. The enactment of the Act did not have a material effect on the Company's consolidated financial statements for the current period, and the Company does not currently expect the provisions of the Act to have a material impact on its effective tax rate in future periods.

------

**NOTE 12** – **Segment Information**

------

The Company sells capital equipment, which includes both Imricor-developed and third-party equipment, and consumable products, for use in iCMR labs, and capital equipment maintenance service agreements.

Operating segments are defined as components of an enterprise about which separate discrete financial information is available for evaluation by the Chief Operating Decision Maker ("CODM") when making decisions regarding resource allocation and assessing performance. The Company's CODM is its Chief Executive Officer, who reviews consolidated financial results when making resource allocation decisions or evaluating Company performance. The Company manages its business on a consolidated basis and operates as one reportable segment, and the CODM's primary measure of segment profit or loss is net loss.

For the Company's single reportable segment, the total amounts of segment profit or loss and segment assets are the same as net loss and total assets, respectively, presented in the accompanying consolidated financial statements.

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[**Table of Contents**](#toc)

IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

------

**NOTE 12** – **Segment Information (cont.)**

------

The following table summarizes the significant expense categories reviewed by the CODM for the years ended December 31:

---

| | | |
|:---|:---|:---|
|  | 2025 | 2024 |
| Revenues |  |  |
| Equipment revenue | $37798 | $305891 |
| Consumable revenue | 170578 | 460693 |
| Service revenue | 83933 | 77091 |
| Consulting revenue |  | 115749 |
| Total Revenues | 292309 | 959424 |
| Costs and expenses |  |  |
| Cost of goods sold | 2325837 | 1883542 |
| Sales expenses | 2577864 | 1147455 |
| Marketing expenses | 1722401 | 1124589 |
| Clinical research expenses | 2335524 | 1409113 |
| Regulatory affairs and quality assurance expenses | 3169087 | 2514980 |
| Other research and development expenses | 5651154 | 4256091 |
| General and administrative expenses | 5301396 | 4920466 |
| Total Costs and Expenses | 23083263 | 17256236 |
| Loss from Operations | (22790954) | (16296812) |
| Other income (expense) |  |  |
| Interest income | 1180294 | 257718 |
| Foreign currency exchange gain | 1509925 | 197867 |
| Other expense | (5217827) | (13851604) |
| Total Other Income (Expense) | (2527608) | (13396019) |
| Net loss | $(25318562) | $(29692831) |

---

Other segment items within net loss correspond to the consolidated statements of operations line items for interest expense, government grant income, change in fair value of convertible notes (related party), change in fair value of option liabilities, change in fair value of warrant liabilities, and other expense.

Revenues by region were as follows:

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Europe | $292309 | $688209 |
| U.S. |  | 115749 |
| Middle East |  | 155466 |
| Total revenue by geography | $292309 | $959424 |

---

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[**Table of Contents**](#toc)

IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

------

**NOTE 12** – **Segment Information (cont.)**

------

The following table provides revenue by country based on the location where services are provided and products are sold for more than 10% of the total revenue for the years ended December 31:

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Netherlands | $156112 | $98237 |
| Germany | 112859 | 167320 |
| Hungary | 23338 | 178187 |
| Switzerland |  | 166046 |
| Qatar |  | 155466 |
| U.S. |  | 115749 |
| Other countries |  | 78419 |
|  | $292309 | $959424 |

---

Product revenue by type were as follows:

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| Equipment revenue | $37798 | $305891 |
| Consumable revenue | 170578 | 460693 |
| Total product revenue | $208376 | $766584 |

---

Property and equipment is held in the following countries:

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2025 | 2024 |
| U.S. | $1121585 | $1198383 |
| Germany | 175111 | 206084 |
| Other foreign countries | 241764 | 474284 |
|  | $1538460 | $1878751 |

---

No individual country other than the U.S. and Germany accounted for more than 10% of the total net book value.

See Note 1 for further details on the Company's products and services, geographic areas, and major customers.

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[**Table of Contents**](#toc)

IMRICOR MEDICAL SYSTEMS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of and for the years ended December 31, 2025 and 2024

------

**NOTE 13** – **Related Party Transactions**

------

K.A.H.R. Foundation is considered a related party based on its ownership interest in the Company, its position as the sole holder of the Company's unsecured, unquoted convertible promissory notes and related warrants issued under the Securities Purchase Agreement dated December 16, 2022, and its contractual right to designate a member of the Company's Board of Directors. See Note 7 for further details on the convertible notes and warrants. Pursuant to the Securities Purchase Agreement, K.A.H.R. Foundation has the right, for so long as the convertible notes are outstanding, to designate one individual to serve as a member of the Company's Board of Directors (the "Lender Nominee"). Dr. Jeffrey Leighton has served as the Lender Nominee since July 2024.

In February 2024, an affiliate of K.A.H.R. Foundation purchased 1,666,667 shares of common stock in the Company's U.S. placement for an aggregate purchase price of $500,000, on the same terms as other investors in the offering. See Note 10 for further information regarding this placement.

------

**NOTE 14** – **Subsequent Events**

------

For the year ended December 31, 2025, the Company evaluated, for potential recognition and disclosure, events that occurred through the date the consolidated financial statements were available for issuance, February 24, 2026.

In January 2026, the Company received 510(k) clearance under the premarket notification process from the U.S. Food and Drug Administration ("FDA") for its Vision-MR Diagnostic Catheter and its NorthStar Mapping System. At December 31, 2025, the related performance-based stock options associated with these regulatory milestones were assessed as not probable of achievement under ASC 718, as discussed in Note 10, and, accordingly, no stock-based compensation expense was recognized for these awards as of that date. The January 2026 FDA clearances caused the related performance conditions to be satisfied and certain performance-based stock options to vest, and the Company expects to recognize approximately $773,000 of additional stock-based compensation expense during 2026 in connection with these awards.

------

[**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Item 14.** | **Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.** |

---

None.

------

[**Table of Contents**](#toc)

---

| | |
|:---|:---|
| **Item 15.** | **Financial Statements and Exhibits.** |

---

(a) Financial Statements

The following audited consolidated financial statements of the Company are included in a separate section of this Registration Statement commencing on the page numbers specified below:

---

| | |
|:---|:---|
| **INDEX TO FINANCIAL STATEMENTS** | |
| **Audited Financial Statements** | |
| **Years Ended December 31, 2025 and 2024** | <br>**Page** |
| [Report of Independent Registered Public Accounting Firm](#report) | [F-2](#report) |
| [Consolidated Balance Sheets as of December 31, 2025 and 2024](#balancesheet) | [F-3](#balancesheet) |
| [Consolidated Statements of Operations for the Years Ended December 31, 2025 and 2024](#statementofopps) | [F-4](#statementofopps) |
| [Consolidated Statements of Stockholders' Equity (Deficit) for the Years Ended December 31, 2025 and 2024](#equity) | [F-5](#equity) |
| [Consolidated Statements of Cash Flows for the Years Ended December 31, 2025 and 2024](#cashflows) | [F-6](#cashflows) |
| [Notes to Consolidated Financial Statements](#notes) | [F-7](#notes) |

---

------

[**Table of Contents**](#toc)

(b) Exhibits

---

| | |
|:---|:---|
| Exhibit Number | Description |
| 3.1 | [Amended and Restated Certificate of Incorporation](ex_929919.htm) |
| 3.2 | [Amended and Restated Bylaws](ex_929920.htm) |
| 4.1 | [Form of Warrant to Purchase Class A Common Stock issued July 14, 2023](ex_929921.htm) |
| 4.2 | [Form of Warrant to Purchase Class A Common Stock issued between August 14, 2023, and October 23, 2023](ex_929922.htm) |
| 4.3 | [Form of Warrant to Purchase CDIs issued between August 15, 2023, and October 23, 2023](ex_929923.htm) |
| 10.1\* | [2025 Remuneration Plan](ex_929924.htm) |
| 10.2 | [Securities Purchase Agreement between the Company and K.A.H.R. Foundation dated December 16, 2022](ex_929925.htm) |
| 10.3 | [Capital Commitment Agreement between the Company and GEM Global Yield LLC SCS dated July 6, 2023](ex_929926.htm) |
| 10.4\* | [Lease Agreement between the Company and Kraus-Anderson, Incorporated, dated July 15, 2007](ex_930354.htm) |
| 10.5\* | [First Amendment to Lease Agreement between the Company and Kraus-Anderson, Incorporated, dated March 23, 2009](ex_930355.htm) |
| 10.6\* | [Second Amendment to Lease Agreement between the Company and Kraus-Anderson, Incorporated, dated October 18, 2012](ex_930356.htm) |
| 10.7\* | [Third Amendment to Lease Agreement between the Company and Kraus-Anderson, Incorporated, dated June 14, 2019](ex_930357.htm) |
| 10.8 | [Fourth Amendment to Lease and Expansion Agreement between the Company and Kraus-Anderson, Incorporated, dated October 19, 2021](ex_930358.htm) |
| 10.9\* | [Lease between the Company and MSP Industrial Portfolio Owner, LLC dated August 1, 2018](ex_930359.htm) |
| 10.10\* | [First Amendment to Lease between the Company and MSP Industrial Portfolio Owner, LLC dated February 21, 2020](ex_930360.htm) |
| 10.11 | [Second Amendment to Lease between the Company and MSP Industrial Portfolio Owner, LLC dated May 19, 2020](ex_930361.htm) |
| 10.12 | [Amended and Restated Employment Agreement between the Company and Steve Wedan dated April 11, 2019](ex_929927.htm) |
| 10.13 | [Employment Agreement between the Company and Gregg Stenzel dated October 23, 2019](ex_929928.htm) |
| 10.14 | [Employment Agreement between the Company and Jonathon Gut dated February 20, 2024](ex_929929.htm) |
| 10.15 | [Form of Indemnification Agreement for directors and executive officers](ex_930362.htm) |
| 10.16 | [2019 Equity Incentive Plan](ex_929930.htm) |
| 10.17 | [Form of Stock Option Award Agreement for 2019 Plan](ex_930363.htm) |
| 10.18 | [Form of Restricted Stock Award Agreement for 2019 Plan](ex_929931.htm) |
| 10.19 | [2019 Equity Incentive Plan Australia Subplan](ex_930364.htm) |
| 10.20 | [Form of Stock Option Award Agreement for 2019 Plan Australia Subplan](ex_929932.htm) |
| 10.21\* | [Patent License Agreement between the Company and Koninklijke Philips N.V. dated December 1, 2023](ex_929933.htm) |
| 10.22\* | [Licensing Agreement between the Company and livetec Ingenieurbuero GmbH dated November 6, 2023](ex_930366.htm) |
| 21.1 | [Subsidiaries of the registrant](ex_929934.htm) |

---

\*Confidential portions of this exhibit have been redacted in compliance with Item 601(b)(10) of Regulation S-K

------

[**Table of Contents**](#toc)

**SIGNATURES**

Pursuant to the requirements of Section 12 of the Securities Exchange Act of 1934, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | | |
|:---|:---|:---|
|  | **IMRICOR MEDICAL SYSTEMS, INC.** | **IMRICOR MEDICAL SYSTEMS, INC.** |
| Date: March 18, 2026 | By: | /s/ *Steven Wedan* |
|  |  | Steven Wedan |
|  |  | Chief Executive Officer |

---

## Exhibit 3.1

**Exhibit 3.1**

## Apostille
***(Convention de La Haye du 5 Octobre 1961)***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***1.***  ***Country: United States of America*** 

***This public document:***<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***2.***  ***has been signed by Charuni Patibanda-Sanchez*** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***3.***  ***acting in the capacity of Secretary Of State Of Delaware*** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***4.***  ***bears the seal/stamp of Office Of Secretary Of State*** 

Certified

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***5.***  ***at Dover, Delaware*** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***6.***  ***fourth day of March, A.D. 2025*** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***7.***  ***by Secretary of State, Delaware Department of State*** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***8.***  ***No.203081358*** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***9.***  ***Seal/Stamp:*** 

---

| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***10. Signature:*** |
| ***/s/ Charuni Patibanda-Sanchez*** |
| **Charuni Patibanda-Sanchez, Secretary of State** |

---

------

## Delaware
The First State

***I,CHARUNI PATIBANDA-SANCHEZ, SECRETARY OF STATE OF THE STATE OF DELAWARE, DO HEREBY CERTIFY THE ATTACHED IS A TRUE AND CORRECT COPY OF THE RESTATED CERTIFICATE OF*** "***IMRICOR MEDICAL SYSTEMS, INC.***"***, FILED IN THIS OFFICE ON THE TWENTY-NINTH DAY OF AUGUST, A.D. 2019, AT 9:17 O***'***CLOCK A.M.***

---

| |
|:---|
| ***/s/ Charuni Patibanda-Sanchez*** |
| **Charuni Patibanda-Sanchez, Secretary of State** |

---

4162603 8100 Authentication: 203081357 <br> SR# 20250913182 Date: 03-04-25

You may verify this certificate online at corp.delaware.gov/authver.shtml

------

**AMENDED AND RESTATED**<br> **CERTIFICATE OF INCORPORATION OF**<br> **IMRICOR MEDICAL SYSTEMS, INC.**

Imricor Medical Systems, Inc., a corporation organized and existing under the laws of the State of Delaware, certifies that:

**ONE:** The date of filing of the original Certificate of Incorporation of this corporation with the Secretary of State of the State of Delaware was May 22, 2006.

**TWO:** This Amended and Restated Certificate of Incorporation has been duly approved by the Board of Directors of this corporation. This Amended and Restated Certificate of Incorporation was duly adopted in accordance with Sections 242 and 245 of the General Corporation Law of the State of Delaware, and has been duly approved by the written consent of the stockholders of this corporation in accordance with Section 228 of the General Corporation Law of the State of Delaware.

**THREE:** The Certificate of Incorporation of this corporation is amended and restated to read as follows:

**I.** The name of this corporation is Imricor Medical Systems, Inc. (the "***Company***").

**II.** The address of the Corporation's registered office in the State of Delaware is 850 New Burton Road, Suite 201, Dover, County of Kent, Delaware 19904. The name of the registered agent at such address is Cogency Global Inc.

**III.** The purpose of the Company is to engage in any lawful act or activity for which a corporation may be organized under the General Corporation Law of the State of Delaware (the "***DGCL***").

**IV.** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** The Company is authorized to issue two classes of stock to be designated, respectively, "***Common Stock***" and "***Preferred Stock***". The total number of shares that the Company is authorized to issue is five hundred sixty million (560,000,000) shares. Five hundred thirty-five million (535,000,000) shares shall be Common Stock, five hundred million (500,000,000) shares of which shall be Class A Common Stock (the "***Class A Common Stock***"), and thirty-five million (35,000,000) of which shall be Class B Common Stock, each having a par value of $0.0001 per share (the "***Class B Common Stock***"). Twenty-five million (25,000,000) shares shall be Preferred Stock, each having a par value of $0.0001 per share. Each share of the Company's Common Stock outstanding immediately prior to the filing of this Amended and Restated Certificate of Incorporation (this "***Restated Certificate***") with the Secretary of State of the State of Delaware shall convert into one share of the Company's Class A Common Stock automatically upon the filing of this Restated Certificate with the Secretary of State of the State of Delaware. Each stock option, warrant or other right to purchase or acquire a share of the Company's Common Stock outstanding immediately prior to the filing of this Restated Certificate with the Secretary of State of the State of Delaware shall convert into a stock option, warrant or other right to purchase or acquire a share of the Company's Class A Common Stock automatically upon the filing of this Restated Certificate with the Secretary of State of the State of Delaware.

------

**B.** The Preferred Stock may be issued from time to time in one or more series. The Board of Directors of the Company (the "***Board of Directors***") is hereby expressly authorized to provide for the issue of all of any of the shares of the Preferred Stock in one or more series, and to fix the number of shares and to determine or alter for each such series, such voting powers, full or limited, or no voting powers, and such designation, preferences, and relative, participating, optional, or other rights and such qualifications, limitations, or restrictions thereof, as shall be stated and expressed in the resolution or resolutions adopted by the Board of Directors providing for the issuance of such shares and as may be permitted by the DGCL. The Board of Directors is also expressly authorized to increase or decrease the number of shares of any series subsequent to the issuance of shares of that series, but not below the number of shares of such series then outstanding. In case the number of shares of any series shall be decreased in accordance with the foregoing sentence, the shares constituting such decrease shall resume the status that they had prior to the adoption of the resolution originally fixing the number of shares of such series. The number of authorized shares of Preferred Stock may be increased or decreased (but not below the number of shares thereof then outstanding) by the affirmative vote of the holders of a majority of the voting power of the stock of the Company entitled to vote thereon, without a separate vote of the holders of the Preferred Stock, or of any series thereof, unless a vote of any such holders is required pursuant to the terms of any certificate of designation filed with respect to any series of Preferred Stock (a "***Certificate of Designation***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** Each outstanding share of Class A Common Stock shall entitle the holder thereof to one vote on each matter properly submitted to the stockholders of the Company for their vote; provided, however, that, except as otherwise required by law, holders of Class A Common Stock shall not be entitled to vote on any amendment to this Restated Certificate (including any Certificate of Designation) that relates solely to the terms of one or more outstanding series of Preferred Stock if the holders of such affected series are entitled, either separately or together as a class with the holders of one or more other such series, to vote thereon by law or pursuant to this Restated Certificate (including any Certificate of Designation). Except as may be required by law, the Class B Common Stock shall not be entitled to any voting rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** Subject to the rights of the Preferred Stock that may come into existence from time to time, the holders of Class A Common Stock shall be entitled to share, on a per share basis, in such dividends and other distributions of cash, property or shares of the Company as may be declared thereon by the Board of Directors out of funds legally available therefor. The holders of Class B Common Stock shall not be entitled to share in any dividends or other distributions of cash, property or shares of the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** In connection with the Company's Initial Public Offering (as defined below) of CHESS Depositary Interests (each a "***CDI***") (with each CDI representing an interest in one share of Class A Common Stock) certain stockholders of the Company were required by the Australian Securities Exchange (the "***ASX***") to enter into an escrow agreement (each a "***Mandatory Escrow Agreement***") with the Company under which the stockholder agreed, among other things, to certain restrictions and prohibitions from engaging in transactions in the shares of Class A Common Stock (including Class A Common Stock in the form of CDIs) held or acquired by the stockholder (including shares of Class A Common Stock that may be acquired upon exercise of a stock option, warrant or other right) or shares of Class A Common Stock which attach to or arise from such Class A Common Stock (collectively, the "***Restricted Securities***") for a period of time identified in the Mandatory Escrow Agreement (the "***Lock-Up Period***"). The Restricted Securities shall automatically and without further action be converted into shares of Class B Common Stock, on a one-for-one basis, if the Board of Directors determines, in its sole discretion, that the stockholder breached or violated any term of such stockholder's Mandatory Escrow Agreement or breached the Official Listing Rules of the ASX relating to the Restricted Securities. Any shares of Class A Common Stock converted to Class B Common Stock pursuant to this Article IV, Section E shall automatically and without further action be converted back into shares of Class A Common Stock, on a one-for-one basis, upon the earlier to occur of the expiration of the Lock-Up Period in the applicable Mandatory Escrow Agreement pursuant to which the shares of Class A Common Stock were originally converted to Class B Common Stock or the breach of the Official Listing Rules of the ASX relating to the Restricted Securities being remedied.

**V.** For the management of the business and for the conduct of the affairs of the Company, and in further definition, limitation and regulation of the powers of the Company, of its directors and of its stockholders or any class thereof, as the case may be, it is further provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** BOARD OF DIRECTORS

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Generally**. The management of the business and the conduct of the affairs of the Company shall be vested in the Board of Directors. The number of directors that shall constitute the Board of Directors shall be fixed exclusively by resolutions adopted by a majority of the authorized number of directors constituting the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Election**.

a. Subject to the rights of the holders of any series of Preferred Stock to elect additional directors under specified circumstances, following the closing of an initial public offering pursuant to (i) an effective registration statement under the Securities Act of 1933, as amended (the "**1933 Act**"), covering the offer and sale of Common Stock to the public, or (ii) a prospectus under the Australian Corporations Act, covering the offers of securities of the Company received in Australia (in either case an "***Initial Public Offering***"), and for so long as permitted by applicable law, the directors shall be divided into three classes designated as Class I, Class II and Class III, respectively. The Board of Directors is authorized to assign members of the Board of Directors already in office to such classes at the time the classification becomes effective. At the first annual meeting of stockholders following the filing of this Restated Certificate, the term of office of the Class I directors shall expire and Class I directors shall be elected for a full term of three years. At the second annual meeting of stockholders following the filing of this Restated Certificate, the term of office of the Class II directors shall expire and Class II directors shall be elected for a full term of three years. At the third annual meeting of stockholders following the filing of this Restated Certificate, the term of office of the Class III directors shall expire and Class III directors shall be elected for a full term of three years. At each succeeding annual meeting of stockholders, directors shall be elected for a full term of three years to succeed the directors of the class whose terms expire at such annual meeting. Directors shall be elected in accordance with this Restated Certificate and the Bylaws.

------

b. At any time that applicable law prohibits a classified board as described in Article V, Section (A)(2)(a), all directors shall be elected at each annual meeting of stockholders to hold office until the next annual meeting. The directors of the Company need not be elected by written ballot unless the Company's Bylaws so provide.

c. Notwithstanding the foregoing provisions of this Section, each director shall serve until his or her successor is duly elected and qualified or until his or her earlier death, resignation or removal. No decrease in the number of directors constituting the Board of Directors shall shorten the term of any incumbent director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Removal of Directors**.

a. Subject to the rights of any series of Preferred Stock to elect additional directors under specified circumstances, neither the Board of Directors nor any individual director may be removed without cause.

b. Subject to any limitations imposed by applicable law, any individual director or directors may be removed with cause by the affirmative vote of the holders of at least 66 2/3% of the voting power of all then-outstanding shares of capital stock of the Company entitled to vote generally at an election of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Vacancies**. Subject to any limitations imposed by applicable law and subject to the rights of the holders of any series of Preferred Stock, any vacancies on the Board of Directors resulting from death, resignation, disqualification, removal or other causes and any newly created directorships resulting from any increase in the number of directors, shall, unless the Board of Directors determines by resolution that any such vacancies or newly created directorships shall be filled by the stockholders, be filled only by the affirmative vote of a majority of the directors then in office, even with less than a quorum of the Board of Directors, and not by the stockholders. Any director elected in accordance with the preceding sentence shall hold office for the remainder of the full term of the director for which the vacancy was created or occurred and until such director's successor shall have been elected and qualified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B. STOCKHOLDER ACTIONS**. No action shall be taken by the stockholders of the Company except at an annual or special meeting of stockholders called in accordance with the Company's Bylaws, and no action shall be taken by the stockholders by written consent or electronic transmission. Advance notice of stockholder nominations for the election of directors and of business to be brought by stockholders before any meeting of the stockholders of the Company shall be given in the manner provided in the Bylaws of the Company.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C. BYLAWS**. The Board of Directors is expressly empowered to adopt, amend or repeal the Bylaws of the Company. Any adoption, amendment or repeal of the Bylaws of the Company by the Board of Directors shall require the approval of a majority of the authorized number of directors. The stockholders shall also have power to adopt, amend or repeal the Bylaws of the Company; provided, however, that, in addition to any vote of the holders of any class or series of stock of the Company required by law or by this Restated Certificate, such action by stockholders shall require the affirmative vote of the holders of at least 66 2/3% of the voting power of all of the then-outstanding shares of the capital stock of the Company entitled to vote generally in the election of directors, voting together as a single class.

**VI.** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** The liability of the directors for monetary damages shall be eliminated to the fullest extent permitted by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** To the fullest extent permitted by applicable law, the Company is authorized to provide indemnification of (and advancement of expenses to) directors, officers and agents of the Company (and any other persons to which applicable law permits the Company to provide indemnification) through Bylaw provisions, agreements with such agents or other persons, vote of stockholders or disinterested directors or otherwise in excess of the indemnification and advancement otherwise permitted by such applicable law. If applicable law is amended after approval by the stockholders of this Article VI to authorize corporate action further eliminating or limiting the personal liability of directors, then the liability of a director to the Company shall be eliminated or limited to the fullest extent permitted by applicable law as so amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** Any repeal or modification of this Article VI shall only be prospective and shall not affect the rights or protections or increase the liability of any director under this Article VI in effect at the time of the alleged occurrence of any act or omission to act giving rise to liability or indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** Unless the Company consents in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for: (1) any derivative action or proceeding brought on behalf of the Company; (2) any action asserting a claim of breach of a fiduciary duty owed by any director, officer or other employee of the Company to the Company or the Company's stockholders; or (3) any action asserting a claim against the Company arising pursuant to any provision of the DGCL, this Restated Certificate or the Bylaws of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** Any person or entity purchasing or otherwise acquiring any interest in shares of capital stock of the Company shall be deemed to have notice of and to have consented to the provisions of this Restated Certificate, including Section D of this Article VI.

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**VII.** &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** The Company reserves the right to amend, alter, change or repeal any provision contained in this Restated Certificate, in the manner now or hereafter prescribed by statute, except as provided in Article VII, Section B, and all rights conferred upon the stockholders herein are granted subject to this reservation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** Notwithstanding any other provisions of this Restated Certificate or any provision of law that might otherwise permit a lesser vote or no vote, but in addition to any affirmative vote of the holders of any particular class or series of the Company required by law or by this Restated Certificate or any Certificate of Designation, the affirmative vote of the holders of at least 66 2/3% of the voting power of all of the then outstanding shares of capital stock of the Company entitled to vote generally in the election of directors, voting together as a single class, shall be required to alter, amend or repeal Articles V, VI or VII hereof.

\*\*\*\*

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**IMRICOR MEDICAL SYSTEMS, INC**. has caused this Amended and Restated Certificate of Incorporation to be signed by its duly authorized officer on August 29, 2019.

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| | |
|:---|:---|
| **IMRICOR MEDICAL SYSTEMS, INC.** | **IMRICOR MEDICAL SYSTEMS, INC.** |
| By: | */s/ Steven R. Wedan* |
| Name: Steven R. Wedan | Name: Steven R. Wedan |
| Title: Chief Executive Officer | Title: Chief Executive Officer |

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## Exhibit 3.2

**Exhibit 3.2**

**AMENDED AND RESTATED BYLAWS**

**OF**

**IMRICOR MEDICAL SYSTEMS, INC.**<br> **(A DELAWARE CORPORATION)**

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**AMENDED AND RESTATED BYLAWS** <br> **OF** <br> **IMRICOR MEDICAL SYSTEMS, INC.** <br> **(A DELAWARE CORPORATION)**

**ARTICLE I**

<br> **OFFICES**

**Section 1 Registered Office**. The registered office of the corporation in the State of Delaware shall be in the City of Dover, County of Kent, or at such other place as may be determined by the Board of Directors.

**Section 2 Other Offices**. The corporation shall also have and maintain an office or principal place of business at such place as may be fixed by the Board of Directors, and may also have offices at such other places, both within and without the State of Delaware, as the Board of Directors may from time to time determine or the business of the corporation may require.

**ARTICLE II**

<br> **CORPORATE SEAL**

**Section 3 Corporate Seal**. The Board of Directors may adopt a corporate seal. If adopted, the corporate seal shall consist of a die bearing the name of the corporation and the inscription, "Corporate Seal-Delaware." Said seal may be used by causing it or a facsimile thereof to be impressed or affixed or reproduced or otherwise.

**ARTICLE III**

<br> **STOCKHOLDERS**' **MEETINGS**

**Section 4 Place of Meetings**. Meetings of the stockholders of the corporation may be held at such place, either within or without the State of Delaware, as may be determined from time to time by the Board of Directors. The Board of Directors may, in its sole discretion, determine that a meeting shall not be held at any place, but may instead be held solely by means of remote communication as provided under the Delaware General Corporation Law (the "<u>DGCL</u>").

**Section 5 Annual Meeting**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** The annual meeting of the stockholders of the corporation, for the purpose of election of directors and for such other business as may properly come before it, shall be held on such date and at such time as may be designated from time to time by the Board of Directors. Nominations of persons for election to the Board of Directors of the corporation and the proposal of business to be considered by the stockholders may be made at an annual meeting of stockholders: (i) pursuant to the corporation's notice of meeting of stockholders (with respect to business other than nominations); (ii) brought specifically by or at the direction of the Board of Directors; or (iii) by any stockholder of the corporation who was a stockholder of record at the time of giving the stockholders notice provided for in Section 5(b) below, who is entitled to vote at the meeting and who complied with the notice procedures set forth in this Section 5. For the avoidance of doubt, clause (iii) above shall be the exclusive means for a stockholder to make nominations and submit other business (other than matters properly included in the corporation's notice of meeting of stockholders and proxy statement under Rule 14a-8 under the Securities Exchange Act of 1934, as amended (such act, the "<u>1934 Act</u>")), before an annual meeting of stockholders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** At an annual meeting of the stockholders, only such business shall be conducted as is a proper matter for stockholder action under the DGCL and as shall have been properly brought before the meeting in accordance with the procedures below.

**(1)** Other than nominations sought to be included in the corporation's proxy materials pursuant to Rule 14(a)-18 under the 1934 Act, for nominations for the election to the Board of Directors to be properly brought before an annual meeting by a stockholder pursuant to clause (iii) of Section 5(a), the stockholder must deliver written notice to the Secretary at the principal executive offices of the corporation on a timely basis as set forth in Section 5(b)(3) and must update and supplement such written notice on a timely basis as set forth in Section 5(c). Such stockholder's notice shall set forth: (A) as to each nominee such stockholder proposes to nominate at the meeting: (1) the name, age, business address and residence address of such nominee, (2) the principal occupation or employment of such nominee, (3) the class and number of shares of each class of capital stock of the corporation which are owned of record and beneficially by such nominee, (4) the date or dates on which such shares were acquired and the investment intent of such acquisition and (5) such other information concerning such nominee as would be required to be disclosed in a proxy statement soliciting proxies for the election of such nominee as a director in an election contest (even if an election contest is not involved), or that is otherwise required to be disclosed pursuant to Section 14 of the 1934 Act and the rules and regulations promulgated thereunder (including such person's written consent to being named as a nominee and to serving as a director if elected); and (B) the information required by Section 5(b)(4). The corporation may require any proposed nominee to furnish such other information as it may reasonably require to determine the eligibility of such proposed nominee to serve as an independent director of the corporation or that could be material to a reasonable stockholder's understanding of the independence, or lack thereof, of such proposed nominee.

**(2)** Other than proposals sought to be included in the corporation's proxy materials pursuant to Rule 14(a)-8 under the 1934 Act, for business other than nominations for the election to the Board of Directors to be properly brought before an annual meeting by a stockholder pursuant to clause (iii) of Section 5(a), the stockholder must deliver written notice to the Secretary at the principal executive offices of the corporation on a timely basis as set forth in Section 5(b)(3), and must update and supplement such written notice on a timely basis as set forth in Section 5(c). Such stockholder's notice shall set forth: (A) as to each matter such stockholder proposes to bring before the meeting, a brief description of the business desired to be brought before the meeting, the reasons for conducting such business at the meeting, and any material interest (including any anticipated benefit of such business to any Proponent (as defined below) other than solely as a result of its ownership of the corporation's capital stock, that is material to any Proponent individually, or to the Proponents in the aggregate) in such business of any Proponent; and (B) the information required by Section 5(b)(4).

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**(3)** To be timely, the written notice required by Section 5(b)(1) or Section 5(b)(2) must be received by the Secretary at the principal executive offices of the corporation not later than the close of business on the ninetieth (90th) day nor earlier than the close of business on the one hundred twentieth (120th) day prior to the first anniversary of the preceding year's annual meeting; provided, however, that, subject to the last sentence of this Section 5(b)(3), in the event that the date of the annual meeting is advanced more than thirty (30) days prior to or delayed by more than thirty (30) days after the anniversary of the preceding year's annual meeting, notice by the stockholder to be timely must be so received not earlier than the close of business on the one hundred twentieth (120th) day prior to such annual meeting and not later than the close of business on the later of the ninetieth (90th) day prior to such annual meeting or the tenth (10th) day following the day on which public announcement of the date of such meeting is first made. In no event shall an adjournment or a postponement of an annual meeting for which notice has been given, or the public announcement thereof has been made, commence a new time period for the giving of a stockholder's notice as described above.

**(4)** The written notice required by Section 5(b)(1) or Section 5(b)(2) shall also set forth, as of the date of the notice and as to the stockholder giving the notice and the beneficial owner, if any, on whose behalf the nomination or proposal is made (each, a "<u>Proponent</u>" and collectively, the "<u>Proponents</u>"): (A) the name and address of each Proponent, as they appear on the corporation's books; (B) the class, series and number of shares of the corporation that are owned beneficially and of record by each Proponent; (C) a description of any agreement, arrangement or understanding (whether oral or in writing) with respect to such nomination or proposal between or among any Proponent and any of its affiliates or associates, and any others (including their names) acting in concert, or otherwise under the agreement, arrangement or understanding, with any of the foregoing; (D) a representation that the Proponents are holders of record or beneficial owners, as the case may be, of shares of the corporation entitled to vote at the meeting and intend to appear in person or by proxy at the meeting to nominate the person or persons specified in the notice (with respect to a notice under Section 5(b)(1)) or to propose the business that is specified in the notice (with respect to a notice under Section 5(b)(2)); (E) a representation as to whether the Proponents intend to deliver a proxy statement and form of proxy to holders of a sufficient number of holders of the corporation's voting shares to elect such nominee or nominees (with respect to a notice under Section 5(b)(1)) or to carry such proposal (with respect to a notice under Section 5(b)(2)); (F) to the extent known by any Proponent, the name and address of any other stockholder supporting the proposal on the date of such stockholder's notice; and (G) a description of all Derivative Transactions (as defined below) by each Proponent during the previous twelve (12) month period, including the date of the transactions and the class, series and number of securities involved in, and the material economic terms of, such Derivative Transactions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** A stockholder providing written notice required by Section 5(b)(1) or Section 5(b)(2) shall update and supplement such notice in writing, if necessary, so that the information provided or required to be provided in such notice is true and correct in all material respects as of (i) the record date for the meeting and (ii) the date that is five (5) business days prior to the meeting and, in the event of any adjournment or postponement thereof, five (5) business days prior to such adjourned or postponed meeting. In the case of an update and supplement pursuant to clause (i) of this Section 5(c), such update and supplement shall be received by the Secretary at the principal executive offices of the corporation not later than five (5) business days after the record date for the meeting. In the case of an update and supplement pursuant to clause (ii) of this Section 5(c), such update and supplement shall be received by the Secretary at the principal executive offices of the corporation not later than two (2) business days prior to the date for the meeting, and, in the event of any adjournment or postponement thereof, two (2) business days prior to such adjourned or postponed meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** A person shall not be eligible for election or re-election as a director unless the person is nominated either in accordance with clause (ii) of Section 5(a), or in accordance with clause (iii) of Section 5(a). Except as otherwise required by law, the chairperson of the meeting shall have the power and duty to determine whether a nomination or any business proposed to be brought before the meeting was made, or proposed, as the case may be, in accordance with the procedures set forth in these Amended and Restated Bylaws ("<u>Bylaws</u>") and, if any proposed nomination or business is not in compliance with these Bylaws, or the Proponent does not act in accordance with the representations in Section 5(b)(4)(d) and Section 5(b)(4)(e), to declare that such proposal or nomination shall not be presented for stockholder action at the meeting and shall be disregarded, notwithstanding that proxies in respect of such nominations or such business may have been solicited or received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** Notwithstanding the foregoing provisions of this Section 5, in order to include information with respect to a stockholder proposal in the proxy statement and form of proxy for a stockholders' meeting, a stockholder must also comply with all applicable requirements of the 1934 Act and the rules and regulations thereunder. Nothing in these Bylaws shall be deemed to affect any rights of stockholders to request inclusion of proposals in the corporation's proxy statement pursuant to Rule 14a-8 under the 1934 Act; provided, however, that any references in these Bylaws to the 1934 Act or the rules and regulations thereunder are not intended to and shall not limit the requirements applicable to proposals and/or nominations to be considered pursuant to Section 5(a)(iii).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g)** For purposes of Section 5 and Section 6,

**(1)** "<u>affiliates</u>" and "<u>associates</u>" shall have the meanings set forth in Rule 405 under the Securities Act of 1933, as amended (such act, the "<u>1933 Act</u>");

**(2)** "<u>Derivative Transaction</u>" means any agreement, arrangement, interest or understanding entered into by, or on behalf or for the benefit of, any Proponent or any of its affiliates or associates, whether record or beneficial: (A) the value of which is derived in whole or in part from the value of any class or series of shares or other securities of the corporation, (B) which otherwise provides any direct or indirect opportunity to gain or share in any gain derived from a change in the value of securities of the corporation, (C) the effect or intent of which is to mitigate loss, manage risk or benefit of security value or price changes, or (D) which provides the right to vote or increase or decrease the voting power of, such Proponent, or any of its affiliates or associates, with respect to any securities of the corporation, which agreement, arrangement, interest or understanding may include, without limitation, any option, warrant, debt position, note, bond, convertible security, swap, stock appreciation right, short position, profit interest, hedge, right to dividends, voting agreement, performance-related fee or arrangement to borrow or lend shares (whether or not subject to payment, settlement, exercise or conversion in any such class or series), and any proportionate interest of such Proponent in the securities of the corporation held by any general or limited partnership, or any limited liability company, of which such Proponent is, directly or indirectly, a general partner or managing member, but excluding any trading directly in CHESS Depositary Interests representing shares of stock; and

**(3)** "<u>public announcement</u>" shall mean disclosure in a press release reported by the Dow Jones News Service, Associated Press or comparable national news service or in a document publicly filed by the corporation with ASX Limited ("<u>ASX</u>") or the Securities and Exchange Commission pursuant to Section 13, 14 or 15(d) of the 1934 Act.

**Section 6 Special Meetings**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Special meetings of the stockholders of the corporation may be called, for any purpose as is a proper matter for stockholder action under Delaware law, by (i) the Chairperson of the Board of Directors, (ii) the Chief Executive Officer, or (iii) the Board of Directors pursuant to a resolution adopted by a majority of the directors then in office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** The Board of Directors shall determine the time and place, if any, of such special meeting. Upon determination of the time and place, if any, of the meeting, the Secretary shall cause a notice of meeting to be given to the stockholders entitled to vote, in accordance with the provisions of Section 7. No business may be transacted at such special meeting otherwise than specified in the notice of meeting.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Nominations of persons for election to the Board of Directors may be made at a special meeting of stockholders at which directors are to be elected (i) by or at the direction of the Board of Directors or (ii) by any stockholder of the corporation who is a stockholder of record at the time of giving notice provided for in this paragraph, who shall be entitled to vote at the meeting and who delivers written notice to the Secretary of the corporation setting forth the information required by Section 5(b)(1). In the event the corporation calls a special meeting of stockholders for the purpose of electing one or more directors to the Board of Directors, any such stockholder of record may nominate a person or persons (as the case may be), for election to such position(s) as specified in the corporation's notice of meeting, if written notice setting forth the information required by Section 5(b)(1) of these Bylaws shall be received by the Secretary at the principal executive offices of the corporation not later than the close of business on the later of the ninetieth (90th) day prior to such meeting or the tenth (10th) day following the day on which public announcement is first made of the date of the special meeting and of the nominees proposed by the Board of Directors to be elected at such meeting. The stockholder shall also update and supplement such information as required under Section 5(c). In no event shall an adjournment or a postponement of a special meeting for which notice has been given, or the public announcement thereof has been made, commence a new time period for the giving of a stockholder's notice as described above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** Notwithstanding the foregoing provisions of this Section 6, a stockholder must also comply with all applicable requirements of the 1934 Act and the rules and regulations thereunder with respect to matters set forth in this Section 6. Nothing in these Bylaws shall be deemed to affect any rights of stockholders to request inclusion of proposals in the corporation's proxy statement pursuant to Rule 14a-8 under the 1934 Act; provided, however, that any references in these Bylaws to the 1934 Act or the rules and regulations thereunder are not intended to and shall not limit the requirements applicable to nominations for the election to the Board of Directors to be considered pursuant to Section 6(c) of these Bylaws.

**Section 7 Notice of Meetings**. Except as otherwise provided by law, notice, given in writing or by electronic transmission, of each meeting of stockholders shall be given not less than ten (10) nor more than sixty (60) days before the date of the meeting to each stockholder entitled to vote at such meeting, such notice to specify the place, if any, date and hour, in the case of special meetings, the purpose or purposes of the meeting, and the means of remote communications, if any, by which stockholders and proxy holders may be deemed to be present in person and vote at any such meeting. If mailed, notice is given when deposited in the United States mail, postage prepaid, directed to the stockholder at such stockholder's address as it appears on the records of the corporation. Without limiting the manner by which notice otherwise may be given effectively to stockholders, any notice to stockholders given by the corporation under any provision of the DGCL, the corporation's Certificate of Incorporation, or these Bylaws shall be effective if given by a form of electronic transmission consented to by the stockholder to whom the notice is given in accordance with Section 232 of the DGCL. Notice given by electronic transmission shall be deemed given: (a) if by facsimile telecommunication, when directed to a facsimile telecommunication number at which the stockholder has consented to receive notice; (b) if by electronic mail, when directed to an electronic mail address at which the stockholder has consented to receive notice; (c) if by posting on an electronic network together with separate notice to the stockholder of such specific posting, upon the later of (i) such posting and (ii) the giving of such separate notice; and (d) if by any other form of electronic transmission, when directed to the stockholder. Notice of the time, place, if any, and purpose of any meeting of stockholders may be waived in writing, signed by the person entitled to notice thereof or by electronic transmission by such person, either before or after such meeting, and will be waived by any stockholder by his or her attendance thereat in person, by remote communication, if applicable, or by proxy, except when the stockholder attends a meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Any stockholder so waiving notice of such meeting shall be bound by the proceedings of any such meeting in all respects as if due notice thereof had been given.

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**Section 8 Quorum**. At all meetings of stockholders, except where otherwise provided by statute or by the corporation's Certificate of Incorporation, or by these Bylaws, the presence, in person, by remote communication, if applicable, or by proxy duly authorized, of the holders of at least one-third of the outstanding shares of stock entitled to vote shall constitute a quorum for the transaction of business. In the absence of a quorum, any meeting of stockholders may be adjourned, from time to time, either by the chairperson of the meeting or by vote of the holders of at least one-third of the shares represented thereat, but no other business shall be transacted at such meeting. The stockholders present at a duly called or convened meeting, at which a quorum is present, may continue to transact business until adjournment, notwithstanding the withdrawal of enough stockholders to leave less than a quorum.

**Section 9 Stockholder Action**. Except as otherwise provided by statute or by applicable stock exchange rules, or by the corporation's Certificate of Incorporation or these Bylaws, in all matters other than the election of directors, the affirmative vote of the majority of the shares present in person, by remote communication, if applicable, or represented by proxy at the meeting and entitled to vote generally on the subject matter shall be the act of the stockholders. A proxy shall be valid if such stockholder duly authorizes the person or persons to act for such stockholder, including in accordance with Section 212(c) of the DGCL. Except as otherwise provided by statute, the corporation's Certificate of Incorporation or these Bylaws, directors shall be elected by a plurality of the votes of the shares present in person, by remote communication, if applicable, or represented by proxy at the meeting and entitled to vote generally on the election of directors. Where a separate vote by a class or classes or series is required, except where otherwise provided by statute, by applicable stock exchange rules or by the corporation's Certificate of Incorporation or these Bylaws, one-third of the outstanding shares of such class or classes or series, present in person, by remote communication, if applicable, or represented by proxy duly authorized, shall constitute a quorum entitled to take action with respect to that vote on that matter. Except where otherwise provided by statute, by applicable stock exchange rules or by the corporation's Certificate of Incorporation or these Bylaws, the affirmative vote of the majority (plurality, in the case of the election of directors) of shares of such class or classes or series present in person, by remote communication, if applicable, or represented by proxy at the meeting shall be the act of such class or classes or series.

**Section 10 Adjournment and Notice of Adjourned Meetings**. Any meeting of stockholders, whether annual or special, may be adjourned from time to time either by the chairperson of the meeting or by the vote of the holders of a majority of the shares present in person, by remote communication, if applicable, or represented by proxy at the meeting. When a meeting is adjourned to another time or place, if any, notice need not be given of the adjourned meeting if the time and place, if any, thereof are announced at the meeting at which the adjournment is taken. At the adjourned meeting, the corporation may transact any business that might have been transacted at the original meeting. If the adjournment is for more than thirty (30) days or if after the adjournment a new record date is fixed for the adjourned meeting, a notice of the adjourned meeting shall be given to each stockholder of record entitled to vote at the meeting.

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**Section 11 Voting Rights**. The number of votes a stockholder may have, if any, is set forth in the corporation's Certificate of Incorporation. For the purpose of determining those stockholders entitled to vote at any meeting of the stockholders, except as otherwise provided by law, only persons in whose names shares stand on the stock records of the corporation on the record date, as provided in Section 13 of these Bylaws, shall be entitled to vote at any meeting of stockholders. Every person entitled to vote shall have the right to do so either in person, by remote communication, if applicable, or by an agent or agents authorized by a proxy granted in accordance with Delaware law. An agent so appointed need not be a stockholder. No proxy shall be voted after three (3) years from its date of creation unless the proxy provides for a longer period.

**Section 12 Joint Owners of Stock**. If shares or other securities having voting power stand of record in the names of two (2) or more persons, whether fiduciaries, members of a partnership, joint tenants, tenants in common, tenants by the entirety, or otherwise, or if two (2) or more persons have the same fiduciary relationship respecting the same shares, unless the Secretary is given written notice to the contrary and is furnished with a copy of the instrument or order appointing them or creating the relationship wherein it is so provided, their acts with respect to voting shall have the following effect: (a) if only one (1) votes, his or her act binds all; (b) if more than one (1) votes, the act of the majority so voting binds all; (c) if more than one (1) votes, but the vote is evenly split on any particular matter, each faction may vote the securities in question proportionally, or may apply to the Delaware Court of Chancery for relief as provided in the DGCL, Section 217(b). If the instrument filed with the Secretary shows that any such tenancy is held in unequal interests, a majority or even-split for the purpose of subsection (c) shall be a majority or even-split in interest.

**Section 13 List of Stockholders**. The Secretary shall prepare and make, at least ten (10) days before every meeting of stockholders, a complete list of the stockholders entitled to vote at said meeting, arranged in alphabetical order, showing the address of each stockholder and the number of shares registered in the name of each stockholder. The list of stockholders may be as of a specific record date, fixed pursuant to Section 41 of these Bylaws. Such list shall be open to the examination of any stockholder, for any purpose germane to the meeting, (a) on a reasonably accessible electronic network, provided that the information required to gain access to such list is provided with the notice of the meeting, or (b) during ordinary business hours, at the principal place of business of the corporation. In the event that the corporation determines to make the list available on an electronic network, the corporation may take reasonable steps to ensure that such information is available only to stockholders of the corporation. The list shall be open to examination of any stockholder during the time of the meeting as provided by law.

**Section 14 Action Without Meeting**. No action shall be taken by the stockholders except at an annual or special meeting of stockholders called in accordance with these Bylaws, and no action shall be taken by the stockholders by written consent or by electronic transmission.

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**Section 15 Organization**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** At every meeting of stockholders, the Chairperson of the Board of Directors, or, if a Chairperson has not been appointed or is absent, the Chief Executive Officer, or, if the Chief Executive Officer is absent, the President, or, if the President is absent, a chairperson of the meeting chosen by a majority in interest of the stockholders entitled to vote, present in person, by remote communication, if applicable, or by proxy, shall act as chairperson. The Chairperson of the Board may appoint the Chief Executive Officer as chairperson of the meeting. The Secretary, or, in his or her absence, an Assistant Secretary directed to do so by the chairperson of the meeting, shall act as secretary of the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** The Board of Directors of the corporation shall be entitled to make such rules or regulations for the conduct of meetings of stockholders as it shall deem necessary, appropriate or convenient. Subject to such rules and regulations of the Board of Directors, if any, the chairperson of the meeting shall have the right and authority to prescribe such rules, regulations and procedures and to do all such acts as, in the judgment of such chairperson, are necessary, appropriate or convenient for the proper conduct of the meeting, including, without limitation, establishing an agenda or order of business for the meeting, rules and procedures for maintaining order at the meeting and the safety of those present, limitations on participation in such meeting to stockholders of record of the corporation and their duly authorized and constituted proxies and such other persons as the chairperson shall permit, restrictions on entry to the meeting after the time fixed for the commencement thereof, limitations on the time allotted to questions or comments by participants and regulation of the opening and closing of the polls for balloting on matters which are to be voted on by ballot. The date and time of the opening and closing of the polls for each matter upon which the stockholders will vote at the meeting shall be announced at the meeting. Unless and to the extent determined by the Board of Directors or the chairperson of the meeting, meetings of stockholders shall not be required to be held in accordance with rules of parliamentary procedure.

**ARTICLE IV**

<br> **DIRECTORS**

**Section 16 Number and Term of Office**. The authorized number of directors of the corporation shall be fixed in accordance with the corporation's Certificate of Incorporation. Directors need not be stockholders unless so required by the corporation's Certificate of Incorporation. If for any cause, the directors shall not have been elected at an annual meeting, they may be elected as soon thereafter as convenient at a special meeting of the stockholders called for that purpose in the manner provided in these Bylaws.

**Section 17 Powers**. The business and affairs of the corporation shall be managed by or under the direction of the Board of Directors, except as may be otherwise provided by statute or by the Certificate of Incorporation.

**Section 18 Classes of Directors**. Subject to the rights of the holders of any series of Preferred Stock to elect additional directors under specified circumstances, the directors shall be divided into three classes designated as Class I, Class II and Class III, respectively. The Board of Directors is authorized to assign members of the Board of Directors already in office to such classes at the time the classification becomes effective. At the first annual meeting of stockholders following the initial classification of the Board of Directors, the term of office of the Class I directors shall expire and Class I directors shall be elected for a full term of three years. At the second annual meeting of stockholders following such initial classification, the term of office of the Class II directors shall expire and Class II directors shall be elected for a full term of three years. At the third annual meeting of stockholders following such initial classification, the term of office of the Class III directors shall expire and Class III directors shall be elected for a full term of three years. At each succeeding annual meeting of stockholders, directors shall be elected for a full term of three years to succeed the directors of the class whose terms expire at such annual meeting.

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Notwithstanding the foregoing provisions of this section, each director shall serve until his or her successor is duly elected and qualified or until his or her earlier death, resignation or removal. No decrease in the number of directors constituting the Board of Directors shall shorten the term of any incumbent director.

**Section 19 Vacancies**. Unless otherwise provided in the corporation's Certificate of Incorporation, and subject to the rights of the holders of any series of Preferred Stock or as otherwise provided by applicable law, any vacancies on the Board of Directors resulting from death, resignation, disqualification, removal or other causes and any newly created directorships resulting from any increase in the number of directors shall, unless the Board of Directors determines by resolution that any such vacancies or newly created directorships shall be filled by stockholders, be filled only by the affirmative vote of a majority of the directors then in office, even with less than a quorum of the Board of Directors, or by a sole remaining director, and not by the stockholders, provided, however, that whenever the holders of any class or classes of stock or series thereof are entitled to elect one or more directors by the provisions of the Certificate of Incorporation, vacancies and newly created directorships subject to such class or series election rights shall, unless the Board of Directors determines by resolution that any such vacancies or newly created directorships shall be filled by stockholders, be filled by a majority of the directors elected by such class or classes or series thereof then in office, or by a sole remaining director so elected, and not by the stockholders. Any director elected in accordance with the preceding sentence shall hold office for the remainder of the full term of the director for which the vacancy was created or occurred and until such director's successor shall have been elected and qualified. A vacancy in the Board of Directors shall be deemed to exist under these Bylaw in the case of the death, removal or resignation of any director.

**Section 20 Resignation**. Any director may resign at any time by delivering his or her notice in writing or by electronic transmission to the Secretary, such resignation to specify whether it will be effective at a particular time. If no such specification is made, the Secretary, in his or her discretion, may either (a) require confirmation from the director prior to deeming the resignation effective, in which case the resignation will be deemed effective upon receipt of such confirmation, or (b) deem the resignation effective at the time of delivery of the resignation to the Secretary. When one or more directors shall resign from the Board of Directors, effective at a future date, a majority of the directors then in office, including those who have so resigned, shall have power to fill such vacancy or vacancies, the vote thereon to take effect when such resignation or resignations shall become effective, and each director so chosen shall hold office for the unexpired portion of the term of the director whose place shall be vacated and until his successor shall have been duly elected and qualified.

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**Section 21 Removal**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Subject to the rights of holders of any series of Preferred Stock to elect additional directors under specified circumstances, neither the Board of Directors nor any individual director may be removed without cause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Subject to any limitation imposed by applicable law, any individual director or directors may only be removed from office with cause by the affirmative vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of all then outstanding shares of capital stock of the corporation entitled to vote generally at an election of directors, voting together as a single class.

**Section 22 Meetings**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Regular Meetings**. Unless otherwise restricted by the corporation's Certificate of Incorporation, regular meetings of the Board of Directors may be held at any time or date and at any place within or without the State of Delaware which has been designated by the Board of Directors and publicized among all directors, either orally or in writing, by telephone, including a voice-messaging system, or by any other system designed to record and communicate messages, including facsimile, telegraph or telex, or by electronic mail or other electronic means. No further notice shall be required for regular meetings of the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Special Meetings**. Unless otherwise restricted by the corporation's Certificate of Incorporation, special meetings of the Board of Directors may be held at any time and place within or without the State of Delaware whenever called by the Chairperson of the Board, the Chief Executive Officer or a majority of the authorized number of directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Meetings by Electronic Communications Equipment**. Any member of the Board of Directors, or of any committee thereof, may participate in a meeting by means of conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other, and participation in a meeting by such means shall constitute presence in person at such meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) Notice of Special Meetings**. Notice of the time and place of all special meetings of the Board of Directors shall be communicated to all directors orally or in writing, by telephone, including a voice messaging system, or by any other system or technology designed to record and communicate messages, including facsimile, telegraph or telex, or by electronic mail or other electronic means, at least twenty-four (24) hours before the date and time of the meeting. If notice is sent by US mail, it shall be sent by first class mail, postage prepaid at least three (3) days before the date of the meeting. Notice of any meeting may be waived in writing or by electronic transmission at any time before or after the meeting and will be waived by any director by attendance thereat, except when the director attends the meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e) Waiver of Notice**. The transaction of all business at any meeting of the Board of Directors, or any committee thereof, however called or noticed, or wherever held, shall be as valid as though it had been transacted at a meeting duly held after regular call and notice, if a quorum be present and if, either before or after the meeting, each of the directors not present who did not receive notice shall sign a written waiver of notice or shall waive notice by electronic transmission. All such waivers shall be filed with the corporate records or made a part of the minutes of the meeting.

**Section 23 Quorum and Voting**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Unless the corporation's Certificate of Incorporation requires a greater number, and except with respect to questions related to indemnification arising under Section 47 for which a quorum shall be a majority of the exact number of directors fixed from time to time, a quorum of the Board of Directors shall consist of a majority of the exact number of directors fixed from time to time by the Board of Directors in accordance with the Certificate of Incorporation; provided, however, at any meeting whether a quorum be present or otherwise, a majority of the directors present may adjourn from time to time until the time fixed for the next regular meeting of the Board of Directors, without notice other than by announcement at the meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** At each meeting of the Board of Directors at which a quorum is present, all questions and business shall be determined and all actions made by the affirmative vote of a majority of the directors present, unless a different vote be required by law, the corporation's Certificate of Incorporation or these Bylaws.

**Section 24 Action Without Meeting**. Unless otherwise restricted by the corporation's Certificate of Incorporation or these Bylaws, any action required or permitted to be taken at any meeting of the Board of Directors or of any committee thereof may be taken without a meeting, if all members then in office of the Board of Directors or committee, as the case may be, consent thereto in writing or by electronic transmission, and such writing or writings or transmission or transmissions are filed with the minutes of proceedings of the Board of Directors or committee. Such filing shall be in paper form if the minutes are maintained in paper form and shall be in electronic form if the minutes are maintained in electronic form.

**Section 25 Fees and Compensation**. Subject to the Listing Rules, directors shall be entitled to such compensation for their services as may be approved by the Board of Directors, including, if so approved, by resolution of the Board of Directors, a fixed sum and expenses of attendance, if any, for attendance at each regular or special meeting of the Board of Directors and at any meeting of a committee of the Board of Directors. Nothing herein contained shall be construed to preclude any director from serving the corporation in any other capacity as an officer, agent, employee, or otherwise and receiving compensation therefor. In these Bylaws, "<u>Listing Rules</u>" shall mean the Listing Rules of ASX and any other rules of ASX which are applicable while the corporation is admitted to the Official List of ASX, each as amended or replaced from time to time, except to the extent of any express written waiver by ASX.

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**Section 26 Committees**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Executive Committee**. The Board of Directors may appoint an Executive Committee to consist of one (1) or more members of the Board of Directors. The Executive Committee, to the extent permitted by law and provided in the resolution of the Board of Directors, shall have and may exercise all the powers and authority of the Board of Directors in the management of the business and affairs of the corporation, and may authorize the seal of the corporation to be affixed to all papers which may require it; but no such committee shall have the power or authority in reference to (i) approving or adopting, or recommending to the stockholders, any action or matter (other than the election or removal of directors) expressly required by the DGCL to be submitted to stockholders for approval, or (ii) adopting, amending or repealing any bylaw of the corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Other Committees**. The Board of Directors may, from time to time, appoint such other committees as may be permitted by law. Such other committees appointed by the Board of Directors shall consist of one (1) or more members of the Board of Directors and shall have and may exercise such powers and authority and perform such duties of the Board of Directors in the management of the business and affairs of the corporation as may be prescribed by the Board of Directors resolution or resolutions creating such committees, but in no event shall any such committee have the powers denied to the Executive Committee in these Bylaws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) Meetings**. Unless the Board of Directors shall otherwise provide, regular meetings of the Executive Committee or any other committee appointed pursuant to this Section 26 shall be held at such times and places as are determined by the Board of Directors, or by any such committee, and when notice thereof has been given to each member of such committee, no further notice of such regular meetings need be given thereafter. Special meetings of any such committee may be held at any place which has been determined from time to time by such committee, and may be called by any director who is a member of such committee, upon notice to the members of such committee of the time and place of such special meeting given in the manner provided for the giving of notice to members of the Board of Directors of the time and place of special meetings of the Board of Directors. Notice of any special meeting of any committee may be waived in writing or by electronic transmission at any time before or after the meeting and will be waived by any director by attendance thereat, except when the director attends such special meeting for the express purpose of objecting, at the beginning of the meeting, to the transaction of any business because the meeting is not lawfully called or convened. Unless otherwise provided by the Board of Directors in the resolutions authorizing the creation of the committee, a majority of the authorized number of members of any such committee shall constitute a quorum for the transaction of business, and the act of a majority of those present at any meeting at which a quorum is present shall be the act of such committee.

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**Section 27 Duties of Chairperson of the Board of Directors**. The Chairperson of the Board of Directors, if appointed and when present, shall preside at all meetings of the stockholders and the Board of Directors. The Chairperson of the Board of Directors shall perform other duties commonly incident to the office and shall also perform such other duties and have such other powers, as the Board of Directors shall designate from time to time.

**Section 28 Deputy Chair and Lead Independent Director**. The Chairperson of the Board of Directors, or if the Chairperson is not an independent director, one of the independent directors, may be designated by the Board of Directors as deputy Chair and lead independent director to serve until replaced by the Board of Directors (the "<u>Deputy Chair and Lead Independent Director</u>"). The Deputy Chair and Lead Independent Director will: with the Chairperson of the Board of Directors, establish the agenda for regular Board of Director meetings and serve as chairperson of Board of Directors meetings in the absence of the Chairperson of the Board of Directors; establish the agenda for meetings of the independent directors; coordinate with the committee chairs regarding meeting agendas and informational requirements; preside over meetings of the independent directors; preside over any portions of meetings of the Board of Directors at which the evaluation or compensation of the Chief Executive Officer is presented or discussed; preside over any portions of meetings of the Board of Directors at which the performance of the Board of Directors is presented or discussed; and perform such other duties as may be established or delegated by the Chairperson of the Board of Directors or the Board of Directors.

**Section 29 Organization**. At every meeting of the directors, the Chairperson of the Board of Directors, or, if a Chairperson has not been appointed or is absent, the Deputy Chair and Lead Independent Director, of if the Deputy Chair and Lead Independent Director is absent, the Chief Executive Officer (if a director), or, if a Chief Executive Officer is absent, the President (if a director), or if the President is absent, the most senior Vice President (if a director), or, in the absence of any such person, a chairperson of the meeting chosen by a majority of the directors present, shall preside over the meeting. The Secretary, or in his absence, any Assistant Secretary or other officer, director or other person directed to do so by the person presiding over the meeting, shall act as secretary of the meeting.

**ARTICLE V**

<br> **OFFICERS**

**Section 30 Officers Designated**. The officers of the corporation shall include, if and when designated by the Board of Directors, the Chairperson, the Chief Executive Officer, the President, one or more Vice Presidents, the Secretary, the Chief Financial Officer and the Treasurer. The Board of Directors may also appoint one or more Assistant Secretaries and Assistant Treasurers and such other officers and agents with such powers and duties as it shall deem necessary. The Board of Directors may assign such additional titles to one or more of the officers as it shall deem appropriate. Any one person may hold any number of offices of the corporation at any one time unless specifically prohibited therefrom by law. The salaries and other compensation of the officers of the corporation shall be fixed by or in the manner designated by the Board of Directors or committee thereof to which the Board of Directors has delegated such responsibility.

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**Section 31 Tenure and Duties of Officers**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) General**. All officers shall hold office at the pleasure of the Board of Directors and until their successors shall have been duly elected and qualified, unless sooner removed. Any officer elected or appointed by the Board of Directors may be removed at any time by the Board of Directors. If the office of any officer becomes vacant for any reason, the vacancy may be filled by the Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Duties of Chief Executive Officer**. The Chief Executive Officer shall preside at all meetings of the stockholders and at all meetings of the Board of Directors (if a director), unless the Chairperson of the Board of Directors or the Deputy Chair and Lead Independent Director has been appointed and is present. Unless an officer has been appointed Chief Executive Officer of the corporation, the President shall be the chief executive officer of the corporation and shall, subject to the control of the Board of Directors, have general supervision, direction and control of the business and officers of the corporation. To the extent that a Chief Executive Officer has been appointed and no President has been appointed, all references in these Bylaws to the President shall be deemed references to the Chief Executive Officer. The Chief Executive Officer shall perform other duties commonly incident to the office and shall also perform such other duties and have such other powers, as the Board of Directors shall designate from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Duties of President**. The President shall preside at all meetings of the stockholders and at all meetings of the Board of Directors (if a director), unless the Chairperson of the Board of Directors, the Deputy Chair and Lead Independent Director, or the Chief Executive Officer has been appointed and is present. Unless another officer has been appointed Chief Executive Officer of the corporation, the President shall be the chief executive officer of the corporation and shall, subject to the control of the Board of Directors, have general supervision, direction and control of the business and officers of the corporation. The President shall perform other duties commonly incident to the office and shall also perform such other duties and have such other powers, as the Board of Directors shall designate from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) Duties of Vice Presidents**. A Vice President may assume and perform the duties of the President in the absence or disability of the President or whenever the office of President is vacant. A Vice President shall perform other duties commonly incident to their office and shall also perform such other duties and have such other powers as the Board of Directors or the Chief Executive Officer, or, if the Chief Executive Officer has not been appointed or is absent, the President shall designate from time to time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e) Duties of Secretary**. The Secretary shall attend all meetings of the stockholders and of the Board of Directors and shall record all acts and proceedings thereof in the minute book of the corporation. The Secretary shall give notice in conformity with these Bylaws of all meetings of the stockholders and of all meetings of the Board of Directors and any committee thereof requiring notice. The Secretary shall perform all other duties provided for in these Bylaws and other duties commonly incident to the office and shall also perform such other duties and have such other powers, as the Board of Directors shall designate from time to time. The Chief Executive Officer, or if no Chief Executive Officer is then serving, the President may direct any Assistant Secretary or other officer to assume and perform the duties of the Secretary in the absence or disability of the Secretary, and each Assistant Secretary shall perform other duties commonly incident to the office and shall also perform such other duties and have such other powers as the Board of Directors or the Chief Executive Officer, or if no Chief Executive Officer is then serving, the President shall designate from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f) Duties of Chief Financial Officer**. The Chief Financial Officer shall keep or cause to be kept the books of account of the corporation in a thorough and proper manner and shall render statements of the financial affairs of the corporation in such form and as often as required by the Board of Directors or the Chief Executive Officer, or if no Chief Executive Officer is then serving, the President. The Chief Financial Officer, subject to the order of the Board of Directors, shall have the custody of all funds and securities of the corporation. The Chief Financial Officer shall perform other duties commonly incident to the office and shall also perform such other duties and have such other powers as the Board of Directors or the Chief Executive Officer, or if no Chief Executive Officer is then serving, the President shall designate from time to time. To the extent that a Chief Financial Officer has been appointed and no Treasurer has been appointed, all references in these Bylaws to the Treasurer shall be deemed references to the Chief Financial Officer. The President may direct the Treasurer, if any, or any Assistant Treasurer, or the controller or any assistant controller to assume and perform the duties of the Chief Financial Officer in the absence or disability of the Chief Financial Officer, and each Treasurer and Assistant Treasurer and each controller and assistant controller shall perform other duties commonly incident to the office and shall also perform such other duties and have such other powers as the Board of Directors or the Chief Executive Officer, or if no Chief Executive Officer is then serving, the President shall designate from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g) Duties of Treasurer**. Unless another officer has been appointed Chief Financial Officer of the corporation, the Treasurer shall be the chief financial officer of the corporation and shall keep or cause to be kept the books of account of the corporation in a thorough and proper manner and shall render statements of the financial affairs of the corporation in such form and as often as required by the Board of Directors or the Chief Executive Officer, or if no Chief Executive Officer is then serving, the President, and, subject to the order of the Board of Directors, shall have the custody of all funds and securities of the corporation. The Treasurer shall perform other duties commonly incident to the office and shall also perform such other duties and have such other powers as the Board of Directors or the Chief Executive Officer, or if no Chief Executive Officer is then serving, the President and Chief Financial Officer (if not Treasurer) shall designate from time to time.

**Section 32 Delegation of Authority**. The Board of Directors may from time to time delegate the powers or duties of any officer to any other officer or agent, notwithstanding any provision hereof.

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**Section 33 Resignations**. Any officer may resign at any time by giving notice in writing or by electronic transmission to the Board of Directors or to the Chief Executive Officer, or if no Chief Executive Officer is then serving, to the President or the Secretary. Any such resignation shall be effective when received by the person or persons to whom such notice is given, unless a later time is specified therein, in which event the resignation shall become effective at such later time. Unless otherwise specified in such notice, the acceptance of any such resignation shall not be necessary to make it effective. Any resignation shall be without prejudice to the rights, if any, of the corporation under any contract with the resigning officer.

**Section 34 Removal**. Any officer may be removed from office at any time, either with or without cause, by the affirmative vote of a majority of the directors in office at the time, or by the unanimous written consent of the directors in office at the time, or by any committee or by the Chief Executive Officer or by other superior officers upon whom such power of removal may have been conferred by the Board of Directors.

**ARTICLE VI**

**EXECUTION OF CORPORATE INSTRUMENTS AND VOTING OF SECURITIES OWNED BY THE CORPORATION**

**Section 35 Execution of Corporate Instruments**. The Board of Directors may, in its discretion, determine the method and designate the signatory officer or officers, or other person or persons, to execute on behalf of the corporation any corporate instrument or document, or to sign on behalf of the corporation the corporate name without limitation, or to enter into contracts on behalf of the corporation, except where otherwise provided by law or these Bylaws, and such execution or signature shall be binding upon the corporation. All checks and drafts drawn on banks or other depositaries on funds to the credit of the corporation or in special accounts of the corporation shall be signed by such person or persons as the Board of Directors shall authorize so to do. Unless authorized or ratified by the Board of Directors or within the agency power of an officer, no officer, agent or employee shall have any power or authority to bind the corporation by any contract or engagement or to pledge its credit or to render it liable for any purpose or for any amount.

**Section 36 Voting of Securities Owned by the Corporation**. All stock and other securities of other corporations owned or held by the corporation for itself, or for other parties in any capacity, shall be voted, and all proxies with respect thereto shall be executed, by the person authorized so to do by resolution of the Board of Directors, or, in the absence of such authorization, by the Chairperson of the Board of Directors, the Chief Executive Officer, the President, or any Vice President.

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**ARTICLE VII**

<br> **SHARES OF STOCK**

**Section 37 Form and Execution of Certificates**. The shares of the corporation shall be represented by certificates, or shall be uncertificated if so provided by resolution or resolutions of the Board of Directors. Certificates for the shares of stock, if any, shall be in such form as is consistent with the Certificate of Incorporation and applicable law. Every holder of stock in the corporation represented by certificate shall be entitled to have a certificate signed by or in the name of the corporation by the Chairperson of the Board of Directors, or the President or any Vice President and by the Treasurer or Assistant Treasurer or the Secretary or Assistant Secretary, certifying the number of shares owned by him in the corporation. Any or all of the signatures on the certificate may be facsimiles. In case any officer, transfer agent, or registrar who has signed or whose facsimile signature has been placed upon a certificate shall have ceased to be such officer, transfer agent, or registrar before such certificate is issued, it may be issued with the same effect as if he were such officer, transfer agent, or registrar at the date of issue.

**Section 38 Lost Certificates**. A new certificate or certificates shall be issued in place of any certificate or certificates theretofore issued by the corporation alleged to have been lost, stolen, or destroyed, upon the making of an affidavit of that fact by the person claiming the certificate of stock to be lost, stolen, or destroyed. The corporation may require, as a condition precedent to the issuance of a new certificate or certificates, the owner of such lost, stolen, or destroyed certificate or certificates, or the owner's legal representative, to agree to indemnify the corporation in such manner as it shall require or to give the corporation a surety bond in such form and amount as it may direct as indemnity against any claim that may be made against the corporation with respect to the certificate alleged to have been lost, stolen, or destroyed.

**Section 39 Transfers.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Transfers of record of shares of stock of the corporation shall be made only upon the corporation's books by the holders thereof, in person or by attorney duly authorized, and, in the case of stock represented by certificate, upon the surrender of a properly endorsed certificate or certificates for a like number of shares. As a condition precedent to the transfer, the corporation or its designee may require the transferor or the transferor's legal representative to provide evidence of transfer or agree to indemnify the corporation or to give the corporation a surety bond in such form and amount as it may direct as indemnity against any claim that may be made against the corporation with respect to the stock transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** The corporation shall have power to enter into and perform any agreement with any number of stockholders of any one or more classes of stock of the corporation to restrict the transfer of shares of stock of the corporation of any one or more classes owned by such stockholders in any manner not prohibited by the DGCL or the Listing Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** The Board of Directors may, to the fullest extent permitted by applicable law, in its absolute discretion refuse to register any transfer of shares of stock or other securities where the shares of stock or other securities are not quoted by ASX. Where the shares of stock or other securities are quoted by ASX, the Board of Directors may refuse to register any transfer if (a) permitted or required to do so by the Listing Rules or ASX, or (b) the registration of the transfer would result in a contravention of or failure of any applicable law or the Listing Rules.

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**Section 40 Restricted Securities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Definitions**. For the purposes of this Section 40, the following definitions shall apply:

**(1)** The term "<u>dispose</u>" shall have the meaning given in the Listing Rules.

**(2)** The term "<u>escrow period</u>" shall, in relation to Restricted Securities, means the escrow period applicable to those Restricted Securities under the Listing Rules.

**(3)** The term "<u>Restricted Securities</u>" shall have the meaning given in the Listing Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** A holder of Restricted Securities cannot dispose of their Restricted Securities during the escrow period attaching to those Restricted Securities except as permitted by the Listing Rules or ASX.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** Except as permitted by the Listing Rules or ASX, the corporation will refuse to acknowledge a disposal (including registering a transfer) of Restricted Securities during the escrow period for those Restricted Securities.

**Section 41 Fixing Record Dates.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** In order that the corporation may determine the stockholders entitled to notice of or to vote at any meeting of stockholders or any adjournment thereof, the Board of Directors may fix a record date, which record date shall not precede the date upon which the resolution fixing the record date is adopted by the Board of Directors, and which record date shall, subject to applicable law, not be more than sixty (60) nor less than ten (10) days before the date of such meeting. If no record date is fixed by the Board of Directors, the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders shall be at the close of business on the day next preceding the day on which notice is given, or if notice is waived, at the close of business on the day next preceding the day on which the meeting is held. A determination of stockholders of record entitled to notice of or to vote at a meeting of stockholders shall apply to any adjournment of the meeting; provided, however, that the Board of Directors may fix a new record date for the adjourned meeting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** In order that the corporation may determine the stockholders entitled to receive payment of any dividend or other distribution or allotment of any rights or the stockholders entitled to exercise any rights in respect of any change, conversion or exchange of stock, or for the purpose of any other lawful action, the Board of Directors may fix, in advance, a record date, which record date shall not precede (i) the fifth (5th) ASX Business Day following the date upon which the record date is notified to ASX, or (ii) if the corporation is not admitted to the official list of ASX, the date upon which the resolution fixing the record date is adopted. The record date shall be not more than sixty (60) days prior to the action for which the record date is required. If no record date is fixed, the record date for determining stockholders for any such purpose shall be at the close of business on the first day permitted under this Section 41(b). For the purpose of this Section 41, the term "<u>ASX Business Day</u>" shall have the meaning given to the term "business day" under the Listing Rules.

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**Section 42 Registered Stockholders**. The corporation shall be entitled to recognize the exclusive right of a person registered on its books as the owner of shares to receive dividends, and to vote as such owner, and shall not be bound to recognize any equitable or other claim to or interest in such share or shares on the part of any other person whether or not it shall have express or other notice thereof, except as otherwise required by the laws of Delaware, the Listing Rules or ASX.

**ARTICLE VIII**

<br> **OTHER SECURITIES OF THE CORPORATION**

**Section 43 Execution of Other Securities**. All bonds, debentures and other corporate securities of the corporation, other than stock certificates (covered in Section 37), may be signed by the Chairperson of the Board of Directors, the Chief Executive Officer, the President or any Vice President, or such other person as may be authorized by the Board of Directors, and the corporate seal impressed thereon or a facsimile of such seal imprinted thereon and attested by the signature of the Secretary or an Assistant Secretary, or the Chief Financial Officer or Treasurer or an Assistant Treasurer; provided, however, that where any such bond, debenture or other corporate security shall be authenticated by the manual signature, or where permissible facsimile signature, of a trustee under an indenture pursuant to which such bond, debenture or other corporate security shall be issued, the signatures of the persons signing and attesting the corporate seal on such bond, debenture or other corporate security may be the imprinted facsimile of the signatures of such persons. Interest coupons appertaining to any such bond, debenture or other corporate security, authenticated by a trustee as aforesaid, shall be signed by the Treasurer or an Assistant Treasurer of the corporation or such other person as may be authorized by the Board of Directors, or bear imprinted thereon the facsimile signature of such person. In case any officer who shall have signed or attested any bond, debenture or other corporate security, or whose facsimile signature shall appear thereon or on any such interest coupon, shall have ceased to be such officer before the bond, debenture or other corporate security so signed or attested shall have been delivered, such bond, debenture or other corporate security nevertheless may be adopted by the corporation and issued and delivered as though the person who signed the same or whose facsimile signature shall have been used thereon had not ceased to be such officer of the corporation.

**ARTICLE IX**

<br> **DIVIDENDS**

**Section 44 Declaration of Dividends**. Dividends upon the capital stock of the corporation, subject to the provisions of the corporation's Certificate of Incorporation and applicable law, if any, may be declared by the Board of Directors pursuant to law at any regular or special meeting. Dividends may be paid in cash, in property, or in shares of the corporation's capital stock, subject to the provisions of the Certificate of Incorporation and applicable law.

**Section 45 Dividend Reserve**. Before payment of any dividend, there may be set aside out of any funds of the corporation available for dividends such sum or sums as the Board of Directors from time to time, in their absolute discretion, think proper as a reserve or reserves to meet contingencies, or for equalizing dividends, or for repairing or maintaining any property of the corporation, or for such other purpose as the Board of Directors shall think conducive to the interests of the corporation, and the Board of Directors may modify or abolish any such reserve in the manner in which it was created.

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**ARTICLE X**

<br> **FISCAL YEAR**

**Section 46 Fiscal Year**. The fiscal year of the corporation shall be fixed by resolution of the Board of Directors.

**ARTICLE XI**

<br> **INDEMNIFICATION**

**Section 47 Indemnification of Directors, Officers, Employees and Other Agents.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Directors and Officers.** The corporation shall indemnify its directors and officers to the fullest extent not prohibited by the DGCL or any other applicable law; provided, however, that the corporation may modify the extent of such indemnification by individual contracts with its directors and officers; and, provided, further, that the corporation shall not be required to indemnify any director or officer in connection with any proceeding (or part thereof) initiated by such person unless (i) such indemnification is expressly required to be made by law, (ii) the proceeding was authorized by the Board of Directors of the corporation, (iii) such indemnification is provided by the corporation, in its sole discretion, pursuant to the powers vested in the corporation under the DGCL or any other applicable law or (iv) such indemnification is required to be made under paragraph (d) of this Section 47.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Employees and other Agents**. The corporation shall have power to indemnify its employees and other agents as set forth in the DGCL or any other applicable law. The Board of Directors shall have the power to delegate the determination of whether indemnification shall be given to any such person as the Board of Directors shall determine.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Expenses**. The corporation shall advance to any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that he or she is or was a director or officer, of the corporation, or is or was serving at the request of the corporation as a director or officer of another corporation, partnership, joint venture, trust or other enterprise, prior to the final disposition of the proceeding, promptly following request therefor, all expenses incurred by any director or officer in connection with such proceeding provided, however, that if the DGCL requires, an advancement of expenses incurred by a director or officer in his or her capacity as a director or officer (and not in any other capacity in which service was or is rendered by such indemnitee, including, without limitation, service to an employee benefit plan) shall be made only upon delivery to the corporation of an undertaking (hereinafter an "undertaking"), by or on behalf of such indemnitee, to repay all amounts so advanced if it shall ultimately be determined by final judicial decision from which there is no further right to appeal (hereinafter a "final adjudication") that such indemnitee is not entitled to be indemnified for such expenses under this Section 47 or otherwise. Notwithstanding the foregoing, unless otherwise determined pursuant to paragraph (e) of this Section 47, no advance shall be made by the corporation to an officer of the corporation (except by reason of the fact that such officer is or was a director of the corporation in which event this sentence shall not apply) in any action, suit or proceeding, whether civil, criminal, administrative or investigative, if a determination is reasonably and promptly made (i) by a majority vote of directors who were not parties to the proceeding, even if not a quorum, or (ii) by a committee of such directors designated by a majority vote of such directors, even though less than a quorum, or (iii) if there are no such directors, or such directors so direct, by independent legal counsel in a written opinion, that the facts known to the decision-making party at the time such determination is made demonstrate clearly and convincingly that such person acted in bad faith or in a manner that such person did not believe to be in or not opposed to the best interests of the corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) Enforcement**. Without the necessity of entering into an express contract, all rights to indemnification and advances to directors and officers under this Section 47 shall be deemed to be contractual rights and be effective to the same extent and as if provided for in a contract between the corporation and the director or officer. Any right to indemnification or advances granted by this Section 47 to a director or officer shall be enforceable by or on behalf of the person holding such right in any court of competent jurisdiction if (i) the claim for indemnification or advances is denied, in whole or in part, or (ii) no disposition of such claim is made within ninety (90) days of request therefor. To the extent permitted by law, the claimant in such enforcement action, if successful in whole or in part, shall be entitled to be paid also the expense of prosecuting the claim. In connection with any claim for indemnification, the corporation shall be entitled to raise as a defense to any such action that the claimant has not met the standards of conduct that make it permissible under the DGCL or any other applicable law for the corporation to indemnify the claimant for the amount claimed. In connection with any claim by an officer of the corporation (except in any action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that such officer is or was a director of the corporation) for advances, the corporation shall be entitled to raise a defense as to any such action clear and convincing evidence that such person acted in bad faith or in a manner that such person did not believe to be in or not opposed to the best interests of the corporation, or with respect to any criminal action or proceeding that such person acted without reasonable cause to believe that his or her conduct was lawful. Neither the failure of the corporation (including its Board of Directors, independent legal counsel or its stockholders) to have made a determination prior to the commencement of such action that indemnification of the claimant is proper in the circumstances because he has met the applicable standard of conduct set forth in the DGCL or any other applicable law, nor an actual determination by the corporation (including its Board of Directors, independent legal counsel or its stockholders) that the claimant has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that claimant has not met the applicable standard of conduct. In any suit brought by a director or officer to enforce a right to indemnification or to an advancement of expenses hereunder, the burden of proving that the director or officer is not entitled to be indemnified, or to such advancement of expenses, under this Section 47 or otherwise shall be on the corporation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e) Non-Exclusivity of Rights**. The rights conferred on any person by this Section 47 shall not be exclusive of any other right which such person may have or hereafter acquire under any applicable statute, provision of the corporation's Certificate of Incorporation, these Bylaws, agreement, vote of stockholders or disinterested directors or otherwise, both as to action in his or her official capacity and as to action in another capacity while holding office. The corporation is specifically authorized to enter into individual contracts with any or all of its directors, officers, employees or agents respecting indemnification and advances, to the fullest extent not prohibited by the DGCL or any other applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f) Survival of Rights**. The rights conferred on any person by this Section 47 shall continue as to a person who has ceased to be a director, officer, employee or other agent and shall inure to the benefit of the heirs, executors and administrators of such a person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(g) Insurance**. To the fullest extent permitted by the DGCL or any other applicable law, the corporation, upon approval by the Board of Directors, may purchase insurance on behalf of any person required or permitted to be indemnified pursuant to this Section 47.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(h) Amendments**. Any repeal or modification of this Section 47 shall only be prospective and shall not affect the rights under this Section 47 in effect at the time of the alleged occurrence of any action or omission to act that is the cause of any proceeding against any agent of the corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(i) Saving Clause**. If this Section 47 or any portion hereof shall be invalidated on any ground by any court of competent jurisdiction, then the corporation shall nevertheless indemnify each director and officer to the full extent not prohibited by any applicable portion of this Section 47 that shall not have been invalidated, or by any other applicable law. If this Section 47 shall be invalid due to the application of the indemnification provisions of another jurisdiction, then the corporation shall indemnify each director and executive officer to the full extent under any other applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(j) Certain Definitions**. For the purposes of this Section 47, the following definitions shall apply:

**(1)** The term "<u>proceeding</u>" shall be broadly construed and shall include, without limitation, the investigation, preparation, prosecution, defense, settlement, arbitration and appeal of, and the giving of testimony in, any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative.

**(2)** The term "<u>expenses</u>" shall be broadly construed and shall include, without limitation, court costs, attorneys' fees, witness fees, fines, amounts paid in settlement or judgment and any other costs and expenses of any nature or kind incurred in connection with any proceeding.

**(3)** The term the "<u>corporation</u>" shall include, in addition to the resulting corporation, any constituent corporation (including any constituent of a constituent) absorbed in a consolidation or merger which, if its separate existence had continued, would have had power and authority to indemnify its directors, officers, and employees or agents, so that any person who is or was a director, officer, employee or agent of such constituent corporation, or is or was serving at the request of such constituent corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, shall stand in the same position under the provisions of this Section 47 with respect to the resulting or surviving corporation as he would have with respect to such constituent corporation if its separate existence had continued.

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**(4)** References to a "<u>director</u>," "<u>executive officer</u>," "<u>officer</u>," "<u>employee</u>," or "<u>agent</u>" of the corporation shall include, without limitation, situations where such person is serving at the request of the corporation as, respectively, a director, executive officer, officer, employee, trustee or agent of another corporation, partnership, joint venture, trust or other enterprise.

**(5)** References to "other enterprises" shall include employee benefit plans; references to "fines" shall include any excise taxes assessed on a person with respect to an employee benefit plan; and references to "serving at the request of the corporation" shall include any service as a director, officer, employee or agent of the corporation which imposes duties on, or involves services by, such director, officer, employee, or agent with respect to an employee benefit plan, its participants, or beneficiaries; and a person who acted in good faith and in a manner he reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner "not opposed to the best interests of the corporation" as referred to in this Section.

**ARTICLE XII**

<br> **NOTICES**

**Section 48 Notices.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a) Notice to Stockholders**. Written notice to stockholders of stockholder meetings shall be given as provided in Section 7 herein. Without limiting the manner by which notice may otherwise be given effectively to stockholders under any agreement or contract with such stockholder, and except as otherwise required by law, written notice to stockholders for purposes other than stockholder meetings may be sent by United States mail or nationally recognized overnight courier, or by facsimile, telegraph or telex or by electronic mail or other electronic means.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b) Notice to Directors**. Any notice required to be given to any director may be given by the method stated in subsection (a) or as otherwise provided in these Bylaws. If such notice is not delivered personally, it shall be sent to such number or address as such director shall have filed in writing with the Secretary, or, in the absence of such filing, to the last known number or address of such director.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c) Affidavit of Mailing**. An affidavit of mailing, executed by a duly authorized and competent employee of the corporation or its transfer agent appointed with respect to the class of stock affected or other agent, specifying the name and number or address or the names and numbers or addresses of the stockholder or stockholders, or director or directors, to whom any such notice or notices was or were given, and the time and method of giving the same, shall in the absence of fraud, be prima facie evidence of the facts therein contained.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d) Methods of Notice**. It shall not be necessary that the same method of giving notice be employed in respect of all recipients of notice, but one permissible method may be employed in respect of any one or more, and any other permissible method or methods may be employed in respect of any other or others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e) Notice to Person with Whom Communication is Unlawful**. Whenever notice is required to be given, under any provision of law or of the corporation's Certificate of Incorporation or these Bylaws, to any person with whom communication is unlawful, the giving of such notice to such person shall not be required and there shall be no duty to apply to any governmental authority or agency for a license or permit to give such notice to such person. Any action or meeting which shall be taken or held without notice to any such person with whom communication is unlawful shall have the same force and effect as if such notice had been duly given. In the event that the action taken by the corporation is such as to require the filing of a certificate under any provision of the DGCL, the certificate shall state, if such is the fact and if notice is required, that notice was given to all persons entitled to receive notice except such persons with whom communication is unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f) Notice to Stockholders Sharing an Address**. Except as otherwise prohibited under DGCL, any notice given under the provisions of DGCL, the Certificate of Incorporation or the Bylaws shall be effective if given by a single written notice to stockholders who share an address if consented to by the stockholders at that address to whom such notice is given. Such consent shall have been deemed to have been given if such stockholder fails to object in writing to the corporation within sixty (60) days of having been given notice by the corporation of its intention to send the single notice. Any consent shall be revocable by the stockholder by written notice to the corporation.

**ARTICLE XIII**

**ARTICLE XIVEXCLUSIVE JURISDICTION FOR CERTAIN ACTIONS** 

**Section 49 Exclusive Jurisdiction for Certain Actions**. Unless the corporation consents in writing to the selection of an alternative forum, the Court of Chancery of the State of Delaware shall be the sole and exclusive forum for (i) any derivative action or proceeding brought on behalf of the corporation, (ii) any action asserting a claim for breach of a fiduciary duty owed by any director, officer, employee or agent of the corporation to the corporation or the corporation's stockholders, (iii) any action asserting a claim arising pursuant to any provision of the DGCL, the Certificate of Incorporation or the corporation or these Bylaws or (iv) any action asserting a claim governed by the internal affairs doctrine, in each case subject to said Court of Chancery having personal jurisdiction over the indispensable parties named as defendants therein.

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**ARTICLE XV**

<br> **AMENDMENTS**

**Section 50 Amendments**. Subject to the limitations set forth in Section 47(h) of these Bylaws or the provisions of the corporation's Certificate of Incorporation, the Board of Directors is expressly empowered to adopt, amend or repeal these Bylaws. The stockholders also shall have power to adopt, amend or repeal these Bylaws; provided, however, that, in addition to any vote of the holders of any class or series of stock of the corporation required by law or by the corporation's Certificate of Incorporation, such action by stockholders shall require the affirmative vote of the holders of at least sixty-six and two-thirds percent (66 2/3%) of the voting power of all of the then-outstanding shares of the capital stock of the corporation entitled to vote generally in the election of directors, voting together as a single class.

**ARTICLE XVI**

<br> **ASX LISTING RULES**

**Section 51 Listing Rules prevail**.

If the corporation is admitted to the official list of ASX, the following apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(a)** Notwithstanding anything contained in these Bylaws or the corporation's Certificate of Incorporation, if the Listing Rules prohibit an act being done, the act shall not be done.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(b)** Nothing contained in these Bylaws or the corporation's Certificate of Incorporation prevents an act being done that the Listing Rules require to be done.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(c)** If the Listing Rules require an act to be done or not to be done, authority is given for that act to be done or not to be done (as the case may be).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(d)** If the Listing Rules require these Bylaws or the corporation's Certificate of Incorporation to contain a provision and they do not contain such a provision, these Bylaws or the corporation's Certificate of Incorporation (as the case may be) is deemed to contain that provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(e)** If the Listing Rules require these Bylaws or the corporation's Certificate of Incorporation not to contain a provision and either contains such a provision, these Bylaws or the corporation's Certificate of Incorporation (as the case may be) is deemed not to contain that provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(f)** If any provision of these Bylaws or the corporation's Certificate of Incorporation is or becomes inconsistent with the Listing Rules, these Bylaws or the corporation's Certificate of Incorporation (as the case may be) shall be deemed not to contain that provision to the extent of the inconsistency.

## Exhibit 4.1

**Exhibit 4.1**

**THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE** "***ACT***"**) OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 OR SECTION 904 OF REGULATION S UNDER THE ACT.**

Date of Issuance:

[Date]

**IMRICOR MEDICAL SYSTEMS, INC.**<br> **WARRANT TO PURCHASE CLASS A COMMON STOCK**

As of the date first written above and for good and sufficient consideration, this Warrant is issued to [Investor Name] or its assigns (the "***Holder***") by Imricor Medical Systems, Inc. (the "***Company***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Purchase of Shares</u>.

(a) <u>Number of Shares</u>. Subject to the terms and conditions set forth herein, the Holder is entitled, upon surrender of this Warrant at the principal office of the Company (or at such other place as the Company shall notify the Holder in writing), to purchase from the Company up to [XXX,XXX] shares of Class A Common Stock. For the purposes of this Warrant, the term "***Class A Common Stock***" shall mean a share of Class A Common Stock, $0.0001 par value per share, of the Company.

(b) <u>Exercise Price</u>. The exercise price for the shares of Class A Common Stock issuable pursuant to this Section 1 (the "***Warrant Securities***") shall be $0.60 (the "***Exercise Price***"). The Warrant Securities and the Exercise Price shall be subject to adjustment pursuant to Section 7 hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Exercise Period</u>. This Warrant shall be exercisable, in whole or in part, during the term commencing on the date first set forth above and ending at 5:00 p.m. Eastern Standard Time on the ten-year anniversary of the Effective Date (as defined below) (the "***Exercise Period***"); <u>provided</u>, <u>however</u>, that this Warrant shall no longer be exercisable and become null and void upon the consummation of a Change of Control Event (as defined below). In the event of a Change of Control Event, the Company shall notify the Holder at least twenty days prior to the consummation of such Change of Control Event. For the purposes of this Warrant, the term "***Change of Control Event***" means: (i) any consolidation or merger of the Company into or with any other entity or entities that results in the exchange of outstanding shares of capital stock of the Company for securities or other consideration issued or paid or caused to be issued or paid by any such entity or affiliate thereof (other than a merger to reincorporate the Company in a different jurisdiction or a merger or consolidation in which the holders of outstanding shares of the capital stock of the Company become, solely by means of such merger or consolidation, the holders of a majority of the voting securities of such other entity) and the holders of the Company voting securities immediately prior to the consolidation or merger hold less than 50% of the outstanding voting securities following such merger or consolidation, (ii) the transfer of 50% or more of the voting securities of the Company, other than pursuant to a bona fide financing transaction for the purposes of raising capital, or (iii) the sale, transfer or other disposition by the Company of all or substantially all its assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Method of Exercise</u>.

(a) While this Warrant remains outstanding and exercisable in accordance with Section 2 above, the Holder may exercise, in whole or in part, the purchase rights evidenced hereby. Such exercise shall be effected by:

(i) the surrender of the Warrant (or if this Warrant has been destroyed, stolen or has otherwise been misplaced, by delivering to the Company an affidavit of loss duly executed by the Holder acceptable in form and substance to the Company), together with a duly executed copy of the Notice of Exercise attached hereto, to the Company at its principal office (or at such other place as the Company shall notify the Holder in writing); and

(ii) the payment to the Company of an amount equal to the aggregate Exercise Price for the number of Warrant Securities being purchased.

(b) Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this Warrant is surrendered to the Company as provided in Section 3(a) above. At such time, the person or persons in whose name or names are registered with the Company's transfer agent upon such exercise as provided in Section 3(c) below shall be deemed to have become the holder or holders of record of the Warrant Securities represented by such registration.

(c) As soon as practicable after the exercise of this Warrant in whole or in part but in any event within thirty business days (the "Warrant Share Delivery Date"), the Company at its expense will cause to be issued in the name of, and delivered to, the Holder, or as such Holder (upon payment by such Holder of any applicable transfer taxes) may direct:

(i) the number of Warrant Securities to be reflected on the records of the Company's transfer agent to which such Holder shall be entitled, and

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(ii) in case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate on the face or faces thereof for the number of Warrant Securities equal to the number of such Warrant Securities described in this Warrant minus the number of such Warrant Securities purchased by the Holder upon all exercises made in accordance with Section 3(a) above or Section 4 below.

If the Company fails to issue and deliver or cause to be delivered the Warrant Securities to Holder within thirty (30) business days of a particular exercise of this Warrant, then the Company shall pay or reimburse Holder upon demand for all reasonable costs and expenses, including, without limitation, reasonable fees and expenses of legal counsel, incurred by Holder as a result of such failure or in enforcing Holder's right's hereunder after such thirty (30) business day period elapses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Net Exercise</u>. In lieu of exercising this Warrant for cash, the Holder may elect to receive Warrant Securities equal to the value of this Warrant (or the portion thereof being exercised) by surrender of this Warrant at the principal office of the Company together with notice of such election (a "***Net Exercise***"). A Holder who Net Exercises shall have the rights described in Sections 3(b) and 3(c) hereof, and the Company shall issue to such Holder a number of Warrant Securities computed using the following formula:

![ex41formula.jpg](ex41formula.jpg)

Where

X = The number of Warrant Securities to be issued to the Holder.

Y = The number of Warrant Securities purchasable under this Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being cancelled (at the date of such calculation).

A = The fair market value of one (1) share of Class A Common Stock (at the date of such calculation).

B = The Exercise Price (as adjusted to the date of such calculation).

For purposes of this Section 4, the fair market value of a share of Class A Common Stock shall mean the average of the closing prices of the CDIs (or equivalent shares of Class A Common Stock underlying this Warrant) quoted in the over-the-counter market in which the CDIs (or equivalent shares of Class A Common Stock underlying the Warrant) are traded or the closing price quoted on any exchange or electronic securities market on which the CDIs (or equivalent shares of Class A Common Stock underlying the Warrant) are listed, whichever is applicable, as published on the Australian Securities Exchange website, if such CDIs are listed on the Australian Securities Exchange, or in *The Wall Street Journal*, if not so listed, for the 30 Trading Days prior to the date of determination of fair market value (or such shorter period of time during which such CDIs were traded over-the-counter or on such exchange).

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If the CDIs (or equivalent shares of Class A Common Stock underlying the Warrant) are not traded on the over-the-counter market, an exchange or an electronic securities market, the fair market value shall be determined in good faith by the Company's Board of Directors; provided that if the Holder does not agree with the Company's Board of Directors' determination, such fair market value shall be determined by an investment bank of national or international repute, selected by and paid for by the Company and reasonably acceptable to the Holder. For the purposes of this Warrant, the term "***CDI***" shall mean CHESS Depositary Interest, a unit of beneficial ownership of Class A Common Stock of the Company (with each CDI being equivalent to one share of Class A Common Stock), and the term "***Trading Day***" shall mean a day on which the Australian Securities Exchange is open for trading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Limitations on Disposition</u>.

(a) Each certificate or book entry notation representing this Warrant and each certificate representing this Warrant issued to any subsequent transferee of any such certificate or book entry notation, shall be stamped or otherwise imprinted with a legend in substantially the form set forth below:

"THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 OR SECTION 904 OF REGULATION S UNDER THE ACT."

(b) The Holder agrees, on behalf of itself and any permitted transferees, that it shall not exchange any Warrant Securities issued upon the exercise of this Warrant into the Company's CHESS Depositary Interests for sale on the Australian Securities Exchange until the Holder has satisfied all holding periods and other requirements pertaining to the Warrant Securities under the Securities Act of 1933 (as amended, the "***Securities Act***") and any applicable state securities laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Covenants of the Company</u>.

(a) <u>Notices of Record Date</u>. In the event of any taking by the Company of a record of the holders of any class of securities for the purpose of determining the holders thereof who are entitled to receive any dividend (other than a cash dividend which is the same as cash dividends paid in previous quarters and stock dividends) or other distribution, the Company shall mail to the Holder, at least twenty days prior to such record date, a notice specifying the date on which any such record is to be taken for the purpose of such dividend or distribution.

(b) <u>Covenants as to Warrant Securities</u>. The Company covenants and agrees that all Warrant Securities that may be issued upon the exercise of the rights represented by this Warrant will, upon issuance in accordance with the terms hereof, be validly issued and outstanding, fully paid and nonassessable, and free from all taxes, liens and charges with respect to the issuance thereof. The Company further covenants and agrees that the Company will at all times during the Exercise Period, have authorized and reserved, free from preemptive rights, a sufficient number of shares of Class A Common Stock to provide for the exercise of the rights represented by this Warrant. If at any time during the Exercise Period the number of authorized but unissued shares of Class A Common Stock shall not be sufficient to permit exercise of this Warrant, the Company will take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Class A Common Stock to such number of shares as shall be sufficient for such purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Adjustment of Exercise Price and Number of Warrant Securities</u>. The number and kind of Warrant Securities purchasable upon exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time as follows:

(a) <u>ASX Listing Rules</u>. For so long as the Company is listed on the ASX, this Section 7 is subject to the listing rules operated by ASX Limited ("***ASX Listing Rules***"). Notwithstanding any other provision of this Warrant, to the extent of any inconsistency: (i) between this Warrant and the ASX Listing Rules, the ASX Listing Rules prevail; and (ii) between this Section 7 and the other terms of this Warrant, this Section 7 prevails.

(b) <u>Subdivisions, Combinations and Other Issuances</u>. If the Company shall at any time after the issuance but prior to the expiration of this Warrant subdivide its Class A Common Stock, by split-up or otherwise, or combine its Class A Common Stock, or issue additional shares of its Preferred Stock or Class A Common Stock as a dividend with respect to any shares of its Class A Common Stock, the number of Warrant Securities issuable on the exercise of this Warrant shall forthwith be proportionately increased in the case of a subdivision or stock dividend, or proportionately decreased in the case of a combination. Appropriate adjustments shall also be made to the Exercise Price payable per share, but the aggregate Exercise Price payable for the total number of Warrant Securities purchasable under this Warrant (as adjusted) shall remain the same. Any adjustment under this Section 7(b) shall become effective at the close of business on the date the subdivision or combination becomes effective, or as of the record date of such dividend, or in the event that no record date is fixed, upon the making of such dividend.

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(c) <u>Reclassification, Reorganization and Consolidation</u>. In case of any reclassification, capital reorganization or change in the capital stock of the Company (other than as a result of a subdivision, combination or stock dividend provided for in Section 7(b) above), then, as a condition of such reclassification, reorganization or change, lawful provision shall be made, and duly executed documents evidencing the same from the Company or its successor shall be delivered to the Holder, so that the Holder shall have the right at any time prior to the expiration of this Warrant to purchase, at a total price equal to that payable upon the exercise of this Warrant, the kind and amount of Class A Common Stock and other securities or property receivable in connection with such reclassification, reorganization or change as permitted by the ASX Listing Rules by a holder of the same number and type of securities as were purchasable as Warrant Securities by the Holder immediately prior to such reclassification, reorganization or change. In any such case appropriate provisions shall be made with respect to the rights and interest of the Holder so that the provisions hereof shall thereafter be applicable with respect to any Class A Common Stock or other securities or property deliverable upon exercise hereof, and appropriate adjustments shall be made to the Exercise Price payable per share hereunder, <u>provided</u> the aggregate Exercise Price shall remain the same.

(d) <u>Reorganizations of Capital</u>. For so long as the Company is listed on the ASX, the rights of Holder will be changed to the extent necessary to comply with the ASX Listing Rules applying to a reorganization of capital at the time of the reorganization.

(e) <u>Notice of Adjustment</u>. When any adjustment is required to be made in the number or kind of Warrant Securities purchasable upon exercise of the Warrant, or in the Exercise Price, the Company shall promptly notify the Holder of such event and of the number of Warrant Securities or other securities or property thereafter purchasable upon exercise of this Warrant.

(f) <u>No Circumvention</u>. The Company shall not, by amendment of its certificate of incorporation or bylaws, through any extraordinary corporate transaction described above, by any issuance or sale of any shares or additional securities, or by any other voluntary action or omission, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all of the provisions of this Warrant and take all action as may be required to protect and preserve the rights of the Holder hereunder.

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(g) <u>Registration Rights</u>. The Company agrees that if it grants registration rights to any other holder of shares of Class A Common Stock, it will enter into an agreement with the Holder granting the Holder the same registration rights with respect to the Warrant Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>No Fractional Shares or Scrip</u>. No fractional shares of Class A Common Stock or scrip representing fractional Class A Common Stock shall be issued upon the exercise of this Warrant, but in lieu of such fractional Class A Common Stock the Company shall make a cash payment therefor on the basis of the Exercise Price then in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>No Stockholder Rights</u>. Prior to exercise of this Warrant, the Holder shall not be entitled to any rights of a holder of Class A Common Stock with respect to the Warrant Securities, including (without limitation) the right to vote such Warrant Securities, receive dividends or other distributions thereon, exercise preemptive rights or be notified of stockholder meetings, and, except as otherwise provided in this Warrant, such Holder shall not be entitled to any stockholder notice or other communication concerning the business or affairs of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Transfer of Warrant</u>. This Warrant is issued upon the following terms, to which the Holder consents and agrees:

(a) Title to this Warrant may be transferred in whole or in part only by endorsement (by the Holder hereof executing the form of assignment attached hereto) and delivery in the same manner as in the case of a negotiable instrument transferable by endorsement and delivery;

(b) Until this Warrant is transferred on the books of the Company, the Company may treat the registered holder of this Warrant as absolute owner hereof for all purposes without being affected by any notice to the contrary; and

(c) This Warrant may be sold or transferred only provided that (i) such assignee is an accredited investor within the meaning of the Securities Act and (ii) the Holder has given prior written notice to the Company regarding such sale or transfer. Such notice shall describe the manner and circumstances of the proposed sale or transfer in sufficient detail and, if reasonably requested by the Company, shall be accompanied at the Holder's expense by either (i) a written opinion of legal counsel who shall, and whose legal opinion shall, be reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transaction may be effected without registration under the Securities Act; (ii) a "no action" letter from the SEC to the effect that the proposed sale or transfer of this Warrant without registration will not result in a recommendation by the staff of the SEC that action be taken with respect thereto; or (iii) any other evidence reasonably satisfactory to counsel to the Company to the effect that the proposed sale or transfer of this Warrant may be effected without registration under the Securities Act, whereupon the Holder shall be entitled to sell or transfer this Warrant in accordance with the terms of the notice given by the Holder to the Company. The Company will not require such a legal opinion or "no action" letter (x) in any transaction in compliance with SEC Rule 144; or (y) in any transaction in which such Holder transfers the Warrant to an affiliate of the Holder for no consideration; provided that each transferee agrees in writing to be subject to the terms of this Section 10.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Governing Law</u>. This Warrant shall be governed by and construed under the laws of the State of Delaware without reference to conflict or choice of law provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Titles and Subtitles</u>. The titles and subtitles used in this Warrant are used for convenience only and are not to be considered in construing or interpreting this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Notices</u>. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail if sent during normal business hours of the recipient, and if not so confirmed, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the respective parties at the following addresses (or at such other addresses as shall be specified by notice given in accordance with this Section 13):

If to the Company:

**Imricor Medical Systems, Inc.**

Attn: Chief Executive Officer

400 Gateway Blvd.

Burnsville, MN 55337

If to Holder:

At the address shown on the signature page hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>No Finder</u><u>'</u><u>s Fee</u>. Each party represents that it neither is or will be obligated for any finder's fee or commission in connection with this transaction. The Holder agrees to indemnify and to hold harmless the Company from any liability for any commission or compensation in the nature of a finder's fee (and the costs and expenses of defending against such liability or asserted liability) for which the Holder or any of its officers, partners, employees or representatives is responsible. The Company agrees to indemnify and hold harmless the Holder from any liability for any commission or compensation in the nature of a finder's fee (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its officers, employees or representatives is responsible.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Entire Agreement; Amendments and Waivers</u>. This Warrant and the Subscription Agreement and Letter of Investment Intent dated as of [Date] (the "***Effective Date***") between the Company and the Holder constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof. Any term of this Warrant may be amended, and the observance of any term of this Warrant may be waived, with the written consent of the Company and the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Severability</u>. If any provision of this Warrant is held to be unenforceable under applicable law, such provision shall be excluded from this Warrant and the balance of the Warrant shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

*(signature page follows)*

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**IN WITNESS WHEREOF**, the parties have executed this Warrant as of the date first written above.

---

| | |
|:---|:---|
|  | **<u>COMPANY</u>**: |
|  | **IMRICOR MEDICAL SYSTEMS, INC.** |
|  | By: |
|  | Name: Steve Wedan |
|  | Title: Chief Executive Officer |
| <u>ACKNOWLEDGED AND AGREED</u>: |  |
|  | **<u>HOLDER</u>**: |
|  | [insert] |
|  | By: |
|  | Name: |
|  | Title: |
|  | Address: |

---

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**<u>NOTICE OF EXERCISE</u>**

**IMRICOR MEDICAL SYSTEMS, INC.** 

Attention: Corporate Secretary

The undersigned hereby elects to purchase, pursuant to the provisions of the Warrant, as follows:

☐ <u> </u> shares of Class A Common Stock pursuant to the terms of the attached Warrant, and tenders herewith payment in cash of the Exercise Price of such shares in full, together with all applicable transfer taxes, if any.

☐ Net Exercise the attached Warrant with respect to<u> </u> shares of Class A Common Stock.

---

| | | |
|:---|:---|:---|
|  |  | **[HOLDER]** |
| Date: |  | By: |
|  | Address: |  |

---

Name in which shares of Class A Common Stock should be registered:

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**<u>ASSIGNMENT FORM</u>**

(To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares of Class A Common Stock.)

**For Value Received**, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

---

| | |
|:---|:---|
| Name: |  |
|  | (Please Print) |
| Address: |  |
|  | (Please Print) |

---

Dated:

---

| |
|:---|
| Holder's Signature: |
| Holder's Address: |

---

**NOTE**: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant. Officers of corporations and those acting in a fiduciary or other representative capacity should provide proper evidence of authority to assign the foregoing Warrant.

## Exhibit 4.2

**Exhibit 4.2**

**THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE** "***ACT***"**) OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 OR SECTION 904 OF REGULATION S UNDER THE ACT.**

Date of Issuance:

[Date]

**IMRICOR MEDICAL SYSTEMS, INC.**<br> **WARRANT TO PURCHASE CLASS A COMMON STOCK**

As of the date first written above and for good and sufficient consideration, this Warrant is issued to [Investor Name] or its assigns (the "***Holder***") by Imricor Medical Systems, Inc. (the "***Company***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Purchase of Shares</u>.

(a) <u>Number of Shares</u>. Subject to the terms and conditions set forth herein, the Holder is entitled, upon surrender of this Warrant at the principal office of the Company (or at such other place as the Company shall notify the Holder in writing), to purchase from the Company up to [XXX,XXX] shares of Class A Common Stock. For the purposes of this Warrant, the term "***Class A Common Stock***" shall mean a share of Class A Common Stock, $0.0001 par value per share, of the Company.

(b) <u>Exercise Price</u>. The exercise price for the shares of Class A Common Stock issuable pursuant to this Section 1 (the "***Warrant Securities***") shall be $0.60 (the "***Exercise Price***"). The Warrant Securities and the Exercise Price shall be subject to adjustment pursuant to Section 7 hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Exercise Period</u>. This Warrant shall be exercisable, in whole or in part, during the term commencing on the date first set forth above and ending at 5:00 p.m. Eastern Standard Time on the ten-year anniversary of the Effective Date (as defined below) (the "***Exercise Period***"); <u>provided</u>, <u>however</u>, that this Warrant shall no longer be exercisable and become null and void upon the consummation of a Change of Control Event (as defined below). In the event of a Change of Control Event, the Company shall notify the Holder at least twenty days prior to the consummation of such Change of Control Event. For the purposes of this Warrant, the term "***Change of Control Event***" means: (i) any consolidation or merger of the Company into or with any other entity or entities that results in the exchange of outstanding shares of capital stock of the Company for securities or other consideration issued or paid or caused to be issued or paid by any such entity or affiliate thereof (other than a merger to reincorporate the Company in a different jurisdiction or a merger or consolidation in which the holders of outstanding shares of the capital stock of the Company become, solely by means of such merger or consolidation, the holders of a majority of the voting securities of such other entity) and the holders of the Company voting securities immediately prior to the consolidation or merger hold less than 50% of the outstanding voting securities following such merger or consolidation, (ii) the transfer of 50% or more of the voting securities of the Company, other than pursuant to a bona fide financing transaction for the purposes of raising capital, or (iii) the sale, transfer or other disposition by the Company of all or substantially all its assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Method of Exercise</u>.

(a) While this Warrant remains outstanding and exercisable in accordance with Section 2 above, the Holder may exercise, in whole or in part, the purchase rights evidenced hereby. Such exercise shall be effected by:

(i) the surrender of the Warrant (or if this Warrant has been destroyed, stolen or has otherwise been misplaced, by delivering to the Company an affidavit of loss duly executed by the Holder acceptable in form and substance to the Company), together with a duly executed copy of the Notice of Exercise attached hereto, to the Company at its principal office (or at such other place as the Company shall notify the Holder in writing); and

(ii) the payment to the Company of an amount equal to the aggregate Exercise Price for the number of Warrant Securities being purchased.

(b) Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this Warrant is surrendered to the Company as provided in Section 3(a) above. At such time, the person or persons in whose name or names are registered with the Company's transfer agent upon such exercise as provided in Section 3(c) below shall be deemed to have become the holder or holders of record of the Warrant Securities represented by such registration.

(c) As soon as practicable after the exercise of this Warrant in whole or in part but in any event within thirty business days (the "Warrant Share Delivery Date"), the Company at its expense will cause to be issued in the name of, and delivered to, the Holder, or as such Holder (upon payment by such Holder of any applicable transfer taxes) may direct:

(i) the number of Warrant Securities to be reflected on the records of the Company's transfer agent to which such Holder shall be entitled, and

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(ii) in case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate on the face or faces thereof for the number of Warrant Securities equal to the number of such Warrant Securities described in this Warrant minus the number of such Warrant Securities purchased by the Holder upon all exercises made in accordance with Section 3(a) above or Section 4 below.

If the Company fails to issue and deliver or cause to be delivered the Warrant Securities to Holder within thirty (30) business days of a particular exercise of this Warrant, then the Company shall pay or reimburse Holder upon demand for all reasonable costs and expenses, including, without limitation, reasonable fees and expenses of legal counsel, incurred by Holder as a result of such failure or in enforcing Holder's right's hereunder after such thirty (30) business day period elapses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Net Exercise</u>. In lieu of exercising this Warrant for cash, the Holder may elect to receive Warrant Securities equal to the value of this Warrant (or the portion thereof being exercised) by surrender of this Warrant at the principal office of the Company together with notice of such election (a "***Net Exercise***"). A Holder who Net Exercises shall have the rights described in Sections 3(b) and 3(c) hereof, and the Company shall issue to such Holder a number of Warrant Securities computed using the following formula:

![ex41formula.jpg](ex41formula.jpg)

Where

X = The number of Warrant Securities to be issued to the Holder.

Y = The number of Warrant Securities purchasable under this Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being cancelled (at the date of such calculation).

A = The fair market value of one (1) share of Class A Common Stock (at the date of such calculation).

B = The Exercise Price (as adjusted to the date of such calculation).

For purposes of this Section 4, the fair market value of a share of Class A Common Stock shall mean the average of the closing prices of the CDIs (or equivalent shares of Class A Common Stock underlying this Warrant) quoted in the over-the-counter market in which the CDIs (or equivalent shares of Class A Common Stock underlying the Warrant) are traded or the closing price quoted on any exchange or electronic securities market on which the CDIs (or equivalent shares of Class A Common Stock underlying the Warrant) are listed, whichever is applicable, as published on the Australian Securities Exchange website, if such CDIs are listed on the Australian Securities Exchange, or in *The Wall Street Journal*, if not so listed, for the 30 Trading Days prior to the date of determination of fair market value (or such shorter period of time during which such CDIs were traded over-the-counter or on such exchange).

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If the CDIs (or equivalent shares of Class A Common Stock underlying the Warrant) are not traded on the over-the-counter market, an exchange or an electronic securities market, the fair market value shall be determined in good faith by the Company's Board of Directors; provided that if the Holder does not agree with the Company's Board of Directors' determination, such fair market value shall be determined by an investment bank of national or international repute, selected by and paid for by the Company and reasonably acceptable to the Holder. For the purposes of this Warrant, the term "***CDI***" shall mean CHESS Depositary Interest, a unit of beneficial ownership of Class A Common Stock of the Company (with each CDI being equivalent to one share of Class A Common Stock), and the term "***Trading Day***" shall mean a day on which the Australian Securities Exchange is open for trading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Limitations on Disposition</u>.

(a) Each certificate or book entry notation representing this Warrant and each certificate representing this Warrant issued to any subsequent transferee of any such certificate or book entry notation, shall be stamped or otherwise imprinted with a legend in substantially the form set forth below:

"THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 OR SECTION 904 OF REGULATION S UNDER THE ACT."

(b) The Holder agrees, on behalf of itself and any permitted transferees, that it shall not exchange any Warrant Securities issued upon the exercise of this Warrant into the Company's CHESS Depositary Interests for sale on the Australian Securities Exchange until the Holder has satisfied all holding periods and other requirements pertaining to the Warrant Securities under the Securities Act of 1933 (as amended, the "***Securities Act***") and any applicable state securities laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Covenants of the Company</u>.

(a) <u>Notices of Record Date</u>. In the event of any taking by the Company of a record of the holders of any class of securities for the purpose of determining the holders thereof who are entitled to receive any dividend (other than a cash dividend which is the same as cash dividends paid in previous quarters and stock dividends) or other distribution, the Company shall mail to the Holder, at least twenty days prior to such record date, a notice specifying the date on which any such record is to be taken for the purpose of such dividend or distribution.

(b) <u>Covenants as to Warrant Securities</u>. The Company covenants and agrees that all Warrant Securities that may be issued upon the exercise of the rights represented by this Warrant will, upon issuance in accordance with the terms hereof, be validly issued and outstanding, fully paid and nonassessable, and free from all taxes, liens and charges with respect to the issuance thereof. The Company further covenants and agrees that the Company will at all times during the Exercise Period, have authorized and reserved, free from preemptive rights, a sufficient number of shares of Class A Common Stock to provide for the exercise of the rights represented by this Warrant. If at any time during the Exercise Period the number of authorized but unissued shares of Class A Common Stock shall not be sufficient to permit exercise of this Warrant, the Company will take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Class A Common Stock to such number of shares as shall be sufficient for such purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Adjustment of Exercise Price and Number of Warrant Securities</u>. The number and kind of Warrant Securities purchasable upon exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time as follows:

(a) <u>ASX Listing Rules</u>. For so long as the Company is listed on the ASX, this Section 7 is subject to the listing rules operated by ASX Limited ("***ASX Listing Rules***"). Notwithstanding any other provision of this Warrant, to the extent of any inconsistency: (i) between this Warrant and the ASX Listing Rules, the ASX Listing Rules prevail; and (ii) between this Section 7 and the other terms of this Warrant, this Section 7 prevails.

(b) <u>Subdivisions, Combinations and Other Issuances</u>. If the Company shall at any time after the issuance but prior to the expiration of this Warrant subdivide its Class A Common Stock, by split-up or otherwise, or combine its Class A Common Stock, or issue additional shares of its Preferred Stock or Class A Common Stock as a dividend with respect to any shares of its Class A Common Stock, the number of Warrant Securities issuable on the exercise of this Warrant shall forthwith be proportionately increased in the case of a subdivision or stock dividend, or proportionately decreased in the case of a combination. Appropriate adjustments shall also be made to the Exercise Price payable per share, but the aggregate Exercise Price payable for the total number of Warrant Securities purchasable under this Warrant (as adjusted) shall remain the same. Any adjustment under this Section 7(b) shall become effective at the close of business on the date the subdivision or combination becomes effective, or as of the record date of such dividend, or in the event that no record date is fixed, upon the making of such dividend.

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(c) <u>Reclassification, Reorganization and Consolidation</u>. In case of any reclassification, capital reorganization or change in the capital stock of the Company (other than as a result of a subdivision, combination or stock dividend provided for in Section 7(b) above), then, as a condition of such reclassification, reorganization or change, lawful provision shall be made, and duly executed documents evidencing the same from the Company or its successor shall be delivered to the Holder, so that the Holder shall have the right at any time prior to the expiration of this Warrant to purchase, at a total price equal to that payable upon the exercise of this Warrant, the kind and amount of Class A Common Stock and other securities or property receivable in connection with such reclassification, reorganization or change as permitted by the ASX Listing Rules by a holder of the same number and type of securities as were purchasable as Warrant Securities by the Holder immediately prior to such reclassification, reorganization or change. In any such case appropriate provisions shall be made with respect to the rights and interest of the Holder so that the provisions hereof shall thereafter be applicable with respect to any Class A Common Stock or other securities or property deliverable upon exercise hereof, and appropriate adjustments shall be made to the Exercise Price payable per share hereunder, <u>provided</u> the aggregate Exercise Price shall remain the same.

(d) <u>Reorganizations of Capital</u>. For so long as the Company is listed on the ASX, the rights of Holder will be changed to the extent necessary to comply with the ASX Listing Rules applying to a reorganization of capital at the time of the reorganization.

(e) <u>Notice of Adjustment</u>. When any adjustment is required to be made in the number or kind of Warrant Securities purchasable upon exercise of the Warrant, or in the Exercise Price, the Company shall promptly notify the Holder of such event and of the number of Warrant Securities or other securities or property thereafter purchasable upon exercise of this Warrant.

(f) <u>No Circumvention</u>. The Company shall not, by amendment of its certificate of incorporation or bylaws, through any extraordinary corporate transaction described above, by any issuance or sale of any shares or additional securities, or by any other voluntary action or omission, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all of the provisions of this Warrant and take all action as may be required to protect and preserve the rights of the Holder hereunder.

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(g) <u>Registration Rights</u>. The Company agrees that if it grants registration rights to any other holder of shares of Class A Common Stock, it will enter into an agreement with the Holder granting the Holder the same registration rights with respect to the Warrant Securities.

(h) <u>New Issues</u>. For so long as the Company is listed on the ASX, nothing in this Warrant entitles the Holder to participate in a new issue of securities by the Company, unless this Warrant is exercised.

(i) <u>Adjustments</u>. For so long as the Company is listed on the ASX, except for adjustments contemplated by Section 7 of this Warrant, including, without limitation, a reorganization of capital of the Company, or as permitted by the ASX Listing Rules, Holder has no right to a change in Exercise Price, or a change to the number of Shares over which the Warrant can be exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>No Fractional Shares or Scrip</u>. No fractional shares of Class A Common Stock or scrip representing fractional Class A Common Stock shall be issued upon the exercise of this Warrant, but in lieu of such fractional Class A Common Stock the Company shall make a cash payment therefor on the basis of the Exercise Price then in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>No Stockholder Rights</u>. Prior to exercise of this Warrant, the Holder shall not be entitled to any rights of a holder of Class A Common Stock with respect to the Warrant Securities, including (without limitation) the right to vote such Warrant Securities, receive dividends or other distributions thereon, exercise preemptive rights or be notified of stockholder meetings, and, except as otherwise provided in this Warrant, such Holder shall not be entitled to any stockholder notice or other communication concerning the business or affairs of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Transfer of Warrant</u>. This Warrant is issued upon the following terms, to which the Holder consents and agrees:

(a) Title to this Warrant may be transferred in whole or in part only by endorsement (by the Holder hereof executing the form of assignment attached hereto) and delivery in the same manner as in the case of a negotiable instrument transferable by endorsement and delivery;

(b) Until this Warrant is transferred on the books of the Company, the Company may treat the registered holder of this Warrant as absolute owner hereof for all purposes without being affected by any notice to the contrary; and

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(c) This Warrant may be sold or transferred only provided that (i) such assignee is an accredited investor within the meaning of the Securities Act and (ii) the Holder has given prior written notice to the Company regarding such sale or transfer. Such notice shall describe the manner and circumstances of the proposed sale or transfer in sufficient detail and, if reasonably requested by the Company, shall be accompanied at the Holder's expense by either (i) a written opinion of legal counsel who shall, and whose legal opinion shall, be reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transaction may be effected without registration under the Securities Act; (ii) a "no action" letter from the SEC to the effect that the proposed sale or transfer of this Warrant without registration will not result in a recommendation by the staff of the SEC that action be taken with respect thereto; or (iii) any other evidence reasonably satisfactory to counsel to the Company to the effect that the proposed sale or transfer of this Warrant may be effected without registration under the Securities Act, whereupon the Holder shall be entitled to sell or transfer this Warrant in accordance with the terms of the notice given by the Holder to the Company. The Company will not require such a legal opinion or "no action" letter (x) in any transaction in compliance with SEC Rule 144; or (y) in any transaction in which such Holder transfers the Warrant to an affiliate of the Holder for no consideration; provided that each transferee agrees in writing to be subject to the terms of this Section 10.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Governing Law</u>. This Warrant shall be governed by and construed under the laws of the State of Delaware without reference to conflict or choice of law provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Titles and Subtitles</u>. The titles and subtitles used in this Warrant are used for convenience only and are not to be considered in construing or interpreting this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Notices</u>. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail if sent during normal business hours of the recipient, and if not so confirmed, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the respective parties at the following addresses (or at such other addresses as shall be specified by notice given in accordance with this Section 13):

If to the Company:

**Imricor Medical Systems, Inc.**

Attn: Chief Executive Officer

400 Gateway Blvd.

Burnsville, MN 55337

If to Holder:

At the address shown on the signature page hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>No Finder</u><u>'</u><u>s Fee</u>. Each party represents that it neither is or will be obligated for any finder's fee or commission in connection with this transaction. The Holder agrees to indemnify and to hold harmless the Company from any liability for any commission or compensation in the nature of a finder's fee (and the costs and expenses of defending against such liability or asserted liability) for which the Holder or any of its officers, partners, employees or representatives is responsible. The Company agrees to indemnify and hold harmless the Holder from any liability for any commission or compensation in the nature of a finder's fee (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its officers, employees or representatives is responsible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Entire Agreement; Amendments and Waivers</u>. This Warrant and the Subscription Agreement and Letter of Investment Intent dated as of [Date] (the "***Effective Date***") between the Company and the Holder constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof. Any term of this Warrant may be amended, and the observance of any term of this Warrant may be waived, with the written consent of the Company and the Holder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Severability</u>. If any provision of this Warrant is held to be unenforceable under applicable law, such provision shall be excluded from this Warrant and the balance of the Warrant shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

*(signature page follows)*

------

**IN WITNESS WHEREOF**, the parties have executed this Warrant as of the date first written above.

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| | |
|:---|:---|
|  | **<u>COMPANY</u>**: |
|  | **IMRICOR MEDICAL SYSTEMS, INC.** |
|  | By: |
|  | Name: Steve Wedan |
|  | Title: Chief Executive Officer |
| <u>ACKNOWLEDGED AND AGREED</u>: |  |
|  | **<u>HOLDER</u>**: |
|  | [insert] |
|  | By: |
|  | Name: |
|  | Title: |
|  | Address: |

---

------

**<u>NOTICE OF EXERCISE</u>**

**IMRICOR MEDICAL SYSTEMS, INC.** 

Attention: Corporate Secretary

The undersigned hereby elects to purchase, pursuant to the provisions of the Warrant, as follows:

☐ <u> </u> shares of Class A Common Stock pursuant to the terms of the attached Warrant, and tenders herewith payment in cash of the Exercise Price of such shares in full, together with all applicable transfer taxes, if any.

☐ Net Exercise the attached Warrant with respect to<u> </u> shares of Class A Common Stock.

---

| | | |
|:---|:---|:---|
|  |  | **[HOLDER]** |
| Date: |  | By: |
|  | Address: |  |

---

Name in which shares of Class A Common Stock should be registered:

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**<u>ASSIGNMENT FORM</u>**

(To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase shares of Class A Common Stock.)

**For Value Received**, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

---

| | |
|:---|:---|
| Name: |  |
|  | (Please Print) |
| Address: |  |
|  | (Please Print) |

---

Dated:

---

| |
|:---|
| Holder's Signature: |
| Holder's Address: |

---

**NOTE**: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant. Officers of corporations and those acting in a fiduciary or other representative capacity should provide proper evidence of authority to assign the foregoing Warrant.

## Exhibit 4.3

**Exhibit 4.3**

**THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE** "***ACT***"**) OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 OR SECTION 904 OF REGULATION S UNDER THE ACT.**

Date of Issuance: <br> [Date]

**IMRICOR MEDICAL SYSTEMS, INC.**<br> **WARRANT TO PURCHASE CHESS Depositary Interests (**"**CDIs**"**)**

As of the date first written above and for good and sufficient consideration, this Warrant is issued to [Investor Name] or its assigns (the "**Holder**") by Imricor Medical Systems, Inc. (the "***Company***").

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| | |
|:---|:---|
| **1** | **<u>Purchase of CDIs</u>.** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Number of CDIs</u>. Subject to the terms and conditions set forth herein, the Holder is entitled, upon surrender of this Warrant at the principal office of the Company (or at such other place as the Company shall notify the Holder in writing), to purchase from the Company up to [XXX,XXX] CDIs. For the purposes of this Warrant, (i) the term "**CDI**" shall mean CHESS Depositary Interest, a unit of beneficial ownership of Class A Common Stock of the Company (with each CDI being equivalent to one share of Class A Common Stock); and (ii) the term "Class A Common Stock" shall mean a share of Class A Common Stock, $0.0001 par value per share, of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Exercise Price</u>. The exercise price for the CDIs issuable pursuant to this Section 1 (the "**Warrant Securities**") shall be A$0.95 (the "**Exercise Price** "). The Warrant Securities and the Exercise Price shall be subject to adjustment pursuant to Section 7 hereof.

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| | |
|:---|:---|
| 2 | <u>Exercise Period</u>. This Warrant shall be exercisable, in whole or in part, during the term commencing on the date first set forth above and ending at 5:00 p.m. Australian Eastern Standard Time on the ten-year anniversary of the Effective Date (as defined below) (the "**Exercise Period**"); <u>provided</u>, <u>however</u>, that this Warrant shall no longer be exercisable and become null and void upon the consummation of a Change of Control Event (as defined below). In the event of a Change of Control Event, the Company shall notify the Holder at least twenty days prior to the consummation of such Change of Control Event. For the purposes of this Warrant, the term "Change of Control Event" means: (i) any consolidation or merger of the Company into or with any other entity or entities that results in the exchange of outstanding shares of capital stock of the Company for securities or other consideration issued or paid or caused to be issued or paid by any such entity or affiliate thereof (other than a merger to reincorporate the Company in a different jurisdiction or a merger or consolidation in which the holders of outstanding shares of the capital stock of the Company become, solely by means of such merger or consolidation, the holders of a majority of the voting securities of such other entity) and the holders of the Company voting securities immediately prior to the consolidation or merger hold less than 50% of the outstanding voting securities following such merger or consolidation, (ii) the transfer of 50% or more of the voting securities of the Company, other than pursuant to a bona fide financing transaction for the purposes of raising capital, or (iii) the sale, transfer or other disposition by the Company of all or substantially all its assets. |

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------

3 <u>Method of Exercise</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 While this Warrant remains outstanding and exercisable in accordance with Section 2 above, the Holder may exercise, in whole or in part, the purchase rights evidenced hereby. Such exercise shall be effected by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the surrender of the Warrant (or if this Warrant has been destroyed, stolen or has otherwise been misplaced, by delivering to the Company an affidavit of loss duly executed by the Holder acceptable in form and substance to the Company), together with a duly executed copy of the Notice of Exercise attached hereto, to the Company at its principal office (or at such other place as the Company shall notify the Holder in writing); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the payment to the Company of an amount equal to the aggregate Exercise Price for the number of Warrant Securities being purchased.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this Warrant is surrendered to the Company as provided in Section 3(a) above. At such time, the person or persons in whose name or names are registered with the Company's transfer agent upon such exercise as provided in Section 3(c) below shall be deemed to have become the holder or holders of record of the Warrant Securities represented by such registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 As soon as practicable after the exercise of this Warrant in whole or in part but in any event within thirty business days, the Company at its expense will cause to be issued in the name of, and delivered to, the Holder, or as such Holder (upon payment by such Holder of any applicable transfer taxes) may direct:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the number of Warrant Securities to be reflected on the records of the Company's transfer agent to which such Holder shall be entitled, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate on the face or faces thereof for the number of Warrant Securities equal to the number of such Warrant Securities described in this Warrant minus the number of such Warrant Securities purchased by the Holder upon all exercises made in accordance with Section 3(a) above or Section 4 below.

If the Company fails to issue and deliver or cause to be delivered the Warrant Securities to Holder within thirty (30) business days of a particular exercise of this Warrant, then the Company shall pay or reimburse Holder upon demand for all reasonable costs and expenses, including, without limitation, reasonable fees and expenses of legal counsel, incurred by Holder as a result of such failure or in enforcing Holder's right's hereunder after such thirty (30) business day period elapses.

------

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| | |
|:---|:---|
| 4 | <u>Net Exercise</u>. In lieu of exercising this Warrant for cash, the Holder may elect to receive Warrant Securities equal to the value of this Warrant (or the portion thereof being exercised) by surrender of this Warrant at the principal office of the Company together with notice of such election (a "**Net Exercise**"). A Holder who Net Exercises shall have the rights described in Sections 3(b) and 3(c) hereof, and the Company shall issue to such Holder a number of Warrant Securities computed using the following formula: |

---

![imricoequ.jpg](imricoequ.jpg)

Where

X = The number of Warrant Securities to be issued to the Holder.

Y = The number of Warrant Securities purchasable under this Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being cancelled (at the date of such calculation).

A = The fair market value of one (1) CDI (at the date of such calculation).

B = The Exercise Price (as adjusted to the date of such calculation).

For purposes of this Section 4, the fair market value shall mean the average of the closing prices of the CDIs (or equivalent shares of Class A Common Stock underlying the CDIs) quoted in the over-the-counter market in which the CDIs (or equivalent shares of Class A Common Stock underlying the CDIs) are traded or the closing price quoted on any exchange or electronic securities market on which the CDIs (or equivalent shares of Class A Common Stock underlying the CDIs) are listed, whichever is applicable, as published on the Australian Securities Exchange website, if such CDIs are listed on the Australian Securities Exchange, or in The Wall Street Journal, if not so listed, for the 30 Trading Days prior to the date of determination of fair market value (or such shorter period of time during which such CDIs were traded over-the-counter or on such exchange).

If the CDIs (or equivalent shares of Class A Common Stock underlying the CDIs) are not traded on the over-the-counter market, an exchange or an electronic securities market, the fair market value shall be determined in good faith by the Company's Board of Directors; provided that if the Holder does not agree with the Company's Board of Directors' determination, such fair market value shall be determined by an investment bank of national or international repute, selected by and paid for by the Company and reasonably acceptable to the Holder. For the purposes of this Warrant, the term "Trading Day" shall mean a day on which the Australian Securities Exchange is open for trading.

5 <u>Limitations on Disposition</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 Each certificate or book entry notation representing this Warrant and each certificate representing this Warrant issued to any subsequent transferee of any such certificate or book entry notation, shall be stamped or otherwise imprinted with a legend in substantially the form set forth below:

"THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 OR SECTION 904 OF REGULATION S UNDER THE ACT."

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6 <u>Covenants of the Company</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Notices of Record Date</u>. In the event of any taking by the Company of a record of the holders of any class of securities for the purpose of determining the holders thereof who are entitled to receive any dividend (other than a cash dividend which is the same as cash dividends paid in previous quarters and stock dividends) or other distribution, the Company shall mail to the Holder, at least twenty days prior to such record date, a notice specifying the date on which any such record is to be taken for the purpose of such dividend or distribution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Covenants as to Warrant Securities</u>. The Company covenants and agrees that all Warrant Securities that may be issued upon the exercise of the rights represented by this Warrant will, upon issuance in accordance with the terms hereof, be validly issued and outstanding, fully paid and nonassessable, and free from all taxes, liens and charges with respect to the issuance thereof. The Company further covenants and agrees that the Company will at all times during the Exercise Period, have authorized and reserved, free from preemptive rights, a sufficient number of shares of Class A Common Stock to provide for the exercise of the rights represented by this Warrant. If at any time during the Exercise Period the number of authorized but unissued shares of Class A Common Stock shall not be sufficient to permit exercise of this Warrant, the Company will take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Class A Common Stock to such number of shares as shall be sufficient for such purposes.

7 <u>Adjustment of Exercise Price and Number of Warrant Securities</u>. The number and kind of Warrant Securities purchasable upon exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>ASX Listing Rules</u>. For so long as the Company is listed on the ASX, this Section 7 is subject to the listing rules operated by ASX Limited ("ASX Listing Rules"). Notwithstanding any other provision of this Warrant, to the extent of any inconsistency: (i) between this Warrant and the ASX Listing Rules, the ASX Listing Rules prevail; and (ii) between this Section 7 and the other terms of this Warrant, this Section 7 prevails.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Subdivisions, Combinations and Other Issuances</u>. If the Company shall at any time after the issuance but prior to the expiration of this Warrant subdivide its Class A Common Stock, by split-up or otherwise, or combine its Class A Common Stock, or issue additional shares of its Preferred Stock or Class A Common Stock as a dividend with respect to any shares of its Class A Common Stock, the number of Warrant Securities issuable on the exercise of this Warrant shall forthwith be proportionately increased in the case of a subdivision or stock dividend, or proportionately decreased in the case of a combination. Appropriate adjustments shall also be made to the Exercise Price payable per CDI, but the aggregate Exercise Price payable for the total number of Warrant Securities purchasable under this Warrant (as adjusted) shall remain the same. Any adjustment under this Section 7(b) shall become effective at the close of business on the date the subdivision or combination becomes effective, or as of the record date of such dividend, or in the event that no record date is fixed, upon the making of such dividend.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Reclassification, Reorganization and Consolidation</u>. In case of any reclassification, capital reorganization or change in the capital stock of the Company (other than as a result of a subdivision, combination or stock dividend provided for in Section 7(b) above), then, as a condition of such reclassification, reorganization or change, lawful provision shall be made, and duly executed documents evidencing the same from the Company or its successor shall be delivered to the Holder, so that the Holder shall have the right at any time prior to the expiration of this Warrant to purchase, at a total price equal to that payable upon the exercise of this Warrant, the kind and amount of CDIs and other securities or property receivable in connection with such reclassification, reorganization or change as permitted by the ASX Listing Rules by a holder of the same number and type of securities as were purchasable as Warrant Securities by the Holder immediately prior to such reclassification, reorganization or change. In any such case appropriate provisions shall be made with respect to the rights and interest of the Holder so that the provisions hereof shall thereafter be applicable with respect to any CDIs or other securities or property deliverable upon exercise hereof, and appropriate adjustments shall be made to the Exercise Price payable per CDI hereunder, <u>provided</u> the aggregate Exercise Price shall remain the same.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Reorganizations of Capital</u>. For so long as the Company is listed on the ASX, the rights of Holder will be changed to the extent necessary to comply with the ASX Listing Rules applying to a reorganization of capital at the time of the reorganization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Notice of Adjustment</u>. When any adjustment is required to be made in the number or kind of Warrant Securities purchasable upon exercise of the Warrant, or in the Exercise Price, the Company shall promptly notify the Holder of such event and of the number of Warrant Securities or other securities or property thereafter purchasable upon exercise of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>No Circumvention</u>. The Company shall not, by amendment of its certificate of incorporation or bylaws, through any extraordinary corporate transaction described above, by any issuance or sale of any shares or additional securities, or by any other voluntary action or omission, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all of the provisions of this Warrant and take all action as may be required to protect and preserve the rights of the Holder hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>New Issues</u>. For so long as the Company is listed on the ASX, nothing in this Warrant entitles the Holder to participate in a new issue of securities by the Company, unless this Warrant is exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Adjustments</u>. For so long as the Company is listed on the ASX, except for adjustments contemplated by Section 7 of this Warrant, including, without limitation, a reorganization of capital of the Company, or as permitted by the ASX Listing Rules, Holder has no right to a change in Exercise Price, or a change to the number of CDIs over which the Warrant can be exercised.

8 <u>No Fractional CDIs or Scrip</u>. No fractional CDIs or scrip representing fractional CDIs shall be issued upon the exercise of this Warrant, but in lieu of such fractional CDIs the Company shall make a cash payment therefor on the basis of the Exercise Price then in effect.

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| | |
|:---|:---|
| 9 | <u>No CDI holder Rights</u>. Prior to exercise of this Warrant, the Holder shall not be entitled to any rights of a holder of CDIs with respect to the Warrant Securities, including (without limitation) the right to vote such Warrant Securities, receive dividends or other distributions thereon, exercise preemptive rights or be notified of stockholder meetings, and, except as otherwise provided in this Warrant, such Holder shall not be entitled to any stockholder notice or other communication concerning the business or affairs of the Company. |

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| | |
|:---|:---|
| 10 | <u>Cleansing Notice</u>. To ensure free tradability of the CDIs issued on exercise of this Warrant pursuant to the terms hereof, the Company shall issue a "cleansing notice" on exercise of the Warrant under section 708(5)(e) of the *Corporations Act 2001* (Cth) ("**Corporations Act**"), or otherwise ensure the CDIs are freely tradeable. |

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11 <u>Transfer of Warrant</u>. This Warrant is issued upon the following terms, to which the Holder consents and agrees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 Title to this Warrant may be transferred in whole or in part only by endorsement (by the Holder hereof executing the form of assignment attached hereto) and delivery in the same manner as in the case of a negotiable instrument transferable by endorsement and delivery;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 Until this Warrant is transferred on the books of the Company, the Company may treat the registered holder of this Warrant as absolute owner hereof for all purposes without being affected by any notice to the contrary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 This Warrant may be sold or transferred only provided that (i) such assignee is exempt from the disclosure requirements of Part 6D.2 of the Corporations Act in accordance with section 708(8) (Sophisticated Investor) or 708(11) (Professional Investor) of the Corporations Act and is not a U.S. Person (as that term is defined in the Rule 902(k) under the U.S. Securities Act, of 1933 as amended) and (ii) the Holder has given prior written notice to the Company regarding such sale or transfer. Such notice shall describe the manner and circumstances of the proposed sale or transfer in sufficient detail and, if reasonably requested by the Company, shall be accompanied at the Holder's expense by either (i) a written opinion of legal counsel who shall, and whose legal opinion shall, be reasonably satisfactory to the Company, addressed to the Company, to the effect that the proposed transaction may be effected without registration under the Securities Act; (ii) a "no action" letter from the SEC to the effect that the proposed sale or transfer of this Warrant without registration will not result in a recommendation by the staff of the SEC that action be taken with respect thereto; or (iii) any other evidence reasonably satisfactory to counsel to the Company to the effect that the proposed sale or transfer of this Warrant may be effected without registration under the Securities Act, whereupon the Holder shall be entitled to sell or transfer this Warrant in accordance with the terms of the notice given by the Holder to the Company. The Company will not require such a legal opinion or "no action" letter (x) in any transaction in compliance with SEC Rule 144; or (y) in any transaction in which such Holder transfers the Warrant to an affiliate of the Holder for no consideration; provided that each transferee agrees in writing to be subject to the terms of this Section 10.

12 <u>Governing Law</u>. This Warrant shall be governed by and construed under the laws of the State of Delaware without reference to conflict or choice of law provisions.

13 <u>Titles and Subtitles</u>. The titles and subtitles used in this Warrant are used for convenience only and are not to be considered in construing or interpreting this Warrant.

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| | |
|:---|:---|
| 14 | <u>Notices</u>. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail if sent during normal business hours of the recipient, and if not so confirmed, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the respective parties at the following addresses (or at such other addresses as shall be specified by notice given in accordance with this Section 13): |

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If to the Company:

Imricor Medical Systems, Inc.

Attn: Chief Executive Officer

400 Gateway Blvd.

Burnsville, MN 55337

If to Holder:

At the address shown on the signature page hereto.

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| | |
|:---|:---|
| 15 | <u>No Finder</u><u>'</u><u>s Fee</u>. Each party represents that it neither is or will be obligated for any finder's fee or commission in connection with this transaction. The Holder agrees to indemnify and to hold harmless the Company from any liability for any commission or compensation in the nature of a finder's fee (and the costs and expenses of defending against such liability or asserted liability) for which the Holder or any of its officers, partners, employees or representatives is responsible. The Company agrees to indemnify and hold harmless the Holder from any liability for any commission or compensation in the nature of a finder's fee (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its officers, employees or representatives is responsible. |

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| | |
|:---|:---|
| 16 | <u>Entire Agreement; Amendments and Waivers</u>. This Warrant and the Subscription Agreement dated [Date] (the "**Effective Date**") between the Company and the Holder constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof. Any term of this Warrant may be amended, and the observance of any term of this Warrant may be waived, with the written consent of the Company and the Holder. |

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| | |
|:---|:---|
| 17 | <u>Severability</u>. If any provision of this Warrant is held to be unenforceable under applicable law, such provision shall be excluded from this Warrant and the balance of the Warrant shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms. |

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(signature page follows)

------

**IN WITNESS WHEREOF**, the parties have executed this Warrant as of the date first written above.

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| |
|:---|
| **<u>COMPANY</u>**: |
| **IMRICOR MEDICAL SYSTEMS, INC.** |
| By:  |
| Name: Steve Wedan |
| Title: Chief Executive Officer |

---

<u>ACKNOWLEDGED AND AGREED</u>:

---

| |
|:---|
| **<u>HOLDER</u>**: |
| [insert] |

---

By:<br>

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| |
|:---|
| Name: |
| Title: |
| Address: [insert] |

---

------

**Subscription Agreement**

**<u>NOTICE OF EXERCISE</u>**

**IMRICOR MEDICAL SYSTEMS, INC.** 

Attention: Corporate Secretary

The undersigned hereby elects to purchase, pursuant to the provisions of the Warrant, as follows:

☐ _____________ CDIs pursuant to the terms of the attached Warrant, and tenders herewith payment in cash of the Exercise Price of such CDIs in full, together with all applicable transfer taxes, if any.

☐ Net Exercise the attached Warrant with respect to __________ CDIs.

**[HOLDER]**

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| | |
|:---|:---|
| Date: | By: |

---

Address:

Name in which CDIs should be registered:

<u> </u>

------

**<u>ASSIGNMENT FORM</u>**

(To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase CDIs.)

**For Value Received**, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

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| | |
|:---|:---|
| Name: |  |
|  | (Please Print) |
| Address: |  |
|  | (Please Print) |

---

Dated:<u> </u>

Holder's Signature:<u> </u>

Holder's Address:<u> </u>

<u> </u>

**NOTE**: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant. Officers of corporations and those acting in a fiduciary or other representative capacity should provide proper evidence of authority to assign the foregoing Warrant.

## Exhibit 10.1

**Exhibit 10.1**

![imricorlogo.jpg](imricorlogo.jpg)

**[PORTIONS HEREIN IDENTIFIED BY [\*\*\*] HAVE BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE THE EXCLUDED INFORMATION IS BOTH (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED.]**

**Restated 2025 Remuneration Plan** – **Officers and Directors**

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| | |
|:---|:---|
| **1** | **Fixed Remuneration** |

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Fixed remuneration consists of base salary and benefits. Fixed Remuneration is reviewed by the Board annually. Salaries for officers are set directly by the Board, based on annual performance reviews.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1** **Officer Salary** 

For 2025, officer per annum salary rates are in the table below. These salary rates will take effect on January 1, 2025. Salary rates have been designed to ensure that Imricor attracts and retains high-quality, high-performing officers, leading to shareholder value. The par increase target for officers in 2025 is 3.0% (less than par increase for non-executives, and below market).

*Table 1. Officer Salaries (USD unless otherwise noted)*

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| | | | | |
|:---|:---|:---|:---|:---|
| **Officer** | **Name** | **2024 Salary Rate pa** | **2025 Salary Rate pa** | **% Increase** |
| Chair & CEO | Steve Wedan | $464900 | $479000 | 3.0% |
| COO (acting R&D leader) | Gregg Stenzel | $315000 | $315000 | 0.0%<sup>1</sup> |
| CFO | Jon Gut | $259375 | $280000 | 8.0% |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Hold on increase reflects stepping in to VP R&D role for 2025

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2** **Benefits** 

For 2025, company-wide benefits are:

● 401k plan (100% match up to 3%, 50% match on next 2% for total match of 4%)

● Health, Dental, and Vision insurance (company pays [\*\*\*] of employee only premium and [\*\*\*] of family coverage premium)

● Health Savings Account and Flexible Spending Account ([\*\*\*], employees can optionally contribute)

● Group Life insurance ([\*\*\*])

● Short Term and Long Term Disability ([\*\*\*])

● Optional life insurance ([\*\*\*], employees can optionally contribute)

● Workers compensation insurance

---

| | |
|:---|:---|
| **2** | **Short-Term Incentives (STI)** |

---

The STI plan is a cash-based incentive (bonus) which is awarded based on annual performance for all employees except those in the Sales Group. The STI allows for variable compensation to promote outstanding performance above and beyond what is expected as part of the ordinary course of business. The board of directors reserves the right to adjust STI based on unforeseen circumstances.

Imricor Medical Systems, Inc. (ASX: IMR) \| ARBN 633 106 019

400 Gateway Blvd. \| Burnsville, Minnesota 55337 USA \| +1 952.818.8400 \| **imricor.com**

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![imricorlogo.jpg](imricorlogo.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1** **Officer Target STI Percentages** 

The 2025 target STI bonus percentages for officers are given in the following table, with no change from the prior year.

*Table 2. Officer STI Target Percentages*

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| | | |
|:---|:---|:---|
| **Officer** | **2024 Target STI** <br> **as % of Salary** | **2025 Target STI** <br> **as % of Salary** |
| Chair & CEO | 50% | 50% |
| COO | 40% | 40% |
| CFO | 30% | 30% |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2** **STI Performance Conditions** 

Officers will have their STI based on Corporate-Wide STI Performance Conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2.1** **Corporate-Wide STI Performance Conditions** 

The following table gives an overview of Imricor's Corporate-Wide STI Performance Conditions.

*Table 3. Corporate-Wide Performance Conditions for Calendar Year 2025*

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| | | | | |
|:---|:---|:---|:---|:---|
| **Key** <br> **Performance** <br> **Indicators** | **Link to Improved** <br> **Company** <br> **Performance** | **Targets** | **Scale** | **Wt** |
| **Financial** | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
|  |  | &nbsp;&nbsp;&nbsp;[\*\*\*] |  |  |
| **Expanding Geographies** | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| **Financial** | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| **Competition** | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |
| **Market Risk Mitigation** | [\*\*\*] | [\*\*\*] | [\*\*\*] | [\*\*\*] |

---

---

| | |
|:---|:---|
| **3** | **Long-Term Incentives (LTI)**  |

---

The Board offers LTI to align executive motivation and performance with shareholders' interests and the long-term benefit of Imricor. LTI only applies to Senior Directors and above.

The LTI plan comprises a stock option grant within the first 15 days following the Annual General Meeting. The CEO, COO and CFO will each receive a stock option grant equaling 50% of their CY2025 salary plus STI paid in 2025. The vesting schedule of the grants will be based on long-term milestones as follows:

---

| | |
|:---|:---|
| **LTI Vesting Milestone** | **Percent** <br> **Vesting** |
| First US customer site orders product following FDA approval | 50% |
| Submission for regulatory approval of first Non-EP product anywhere in the world | 25% |
| FDA approval of NorthStar | 25% |

---

Imricor Medical Systems, Inc. (ASX: IMR) \| ARBN 633 106 019

400 Gateway Blvd. \| Burnsville, Minnesota 55337 USA \| +1 952.818.8400 \| **imricor.com**

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![imricorlogo.jpg](imricorlogo.jpg)

---

| | |
|:---|:---|
| **4** | **Board of Directors** |

---

Independent non-executive directors (INED) serving on the Board will receive US$65,000 in annual fees. Committee chairs will receive an additional US$10,000 in annual fees. Committee members will receive an additional US$5,000 in annual fees. All fees for Australian INEDs are inclusive of superannuation. The cap on total INED fees per year is US$400,000.

Within the first 15 days following the Annual General Meeting, INEDs will receive an annual restricted stock grant equal to 50% of their 2025 fees. The restricted stock will vest 25% each year over four years.

Directors appointed to the Board pursuant to contractual obligations of the Company are non-independent non-executive directors. Non-independent non-executive directors are not eligible to receive compensation under this 2025 Remuneration Plan.

Executive directors are not eligible to receive compensation as a director but will receive compensation as an executive as provided elsewhere in this 2025 Remuneration Plan.

Imricor Medical Systems, Inc. (ASX: IMR) \| ARBN 633 106 019

400 Gateway Blvd. \| Burnsville, Minnesota 55337 USA \| +1 952.818.8400 \| **imricor.com**

## Exhibit 10.2

**Exhibit 10.2**

**SECURITIES PURCHASE AGREEMENT**

**This Securities Purchase Agreement** ("***Agreement***") is made as of December 16, 2022 (the "***Effective Date***"), by and between Imricor Medical Systems, Inc., a Delaware corporation (the "***Company***"), and The K.A.H.R. Foundation (the "***Lender***"). Capitalized terms not otherwise defined in this Agreement shall have the meanings ascribed to them in Section 1 below.

**RECITAL**

**Whereas**, the Lender intends to provide certain Consideration to the Company as shown on the Investment Schedule attached hereto (the "***Investment Schedule***") in exchange for the issuance by the Company of the Convertible Notes and the Warrants.

**Whereas**, the Company and the Lender are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the "***1933 Act***"), and Rule 506(b) of Regulation D ("***Regulation D***") as promulgated by the United States Securities and Exchange Commission (the "***SEC***") under the 1933 Act.

**AGREEMENT**

**Now, Therefore**, in consideration of the covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound hereby, agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Definitions**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "  ***ASX***" shall mean ASX Limited and, as the context requires, the market it operates as the Australian Securities Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "  ***CDI***" shall mean CHESS Depositary Interest, a unit of beneficial ownership of Class A Common Stock of the Company (with each CDI being equivalent to one share of Class A Common Stock).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "  ***Class A Common Stock***" shall mean shares of Class A Common Stock, $0.0001 par value per share, of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "  ***Company Intellectual Property***" means all registered or unregistered patents, patent applications, trademarks, trademark applications, service marks, tradenames, copyrights, trade secrets, licenses, domain names, mask works, information and proprietary rights and processes as are necessary to the conduct of the Company's business as now conducted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "  ***Convertible Notes***" shall mean the one or more promissory notes convertible into CDIs (such CDIs, the "  ***Note CDIs***") issued to the Lender pursuant to Section 2.1 below, the form of which is attached hereto as Exhibit A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "  ***Consideration***" shall mean, as applicable, the amount of cash paid by the Lender pursuant to this Agreement, as shown on the Investment Schedule.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "  ***Equity Securities***" shall mean the Company's shares of capital stock or any other securities conferring the right to purchase the Company's capital stock or securities convertible into, or exchangeable for (with or without additional consideration), the Company's capital stock (other than the Convertible Notes and the Warrants).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "  ***Majority Note Holders***" shall mean the holders of Convertible Notes representing a majority of the aggregate principal amount of all Convertible Notes then outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "  ***Material Adverse Effect***" means any material adverse effect on (i) the business, assets (including Company Intellectual Property and intangible assets), liabilities, condition (financial or otherwise), properties, operations (including results thereof) or the prospects of the Company, (ii) the transactions contemplated hereby or in any of the other Transaction Documents or any other agreements or instruments to be entered into in connection herewith or therewith or (iii) the authority or ability of the Company to perform any of its obligations under any of the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "  ***Maturity Date***" shall have the same meaning set forth in the Convertible Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "  ***Person***" means any individual, corporation, partnership, trust, limited liability company, association or other entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "  ***Reference Price***" shall mean $0.2563, which is the 10-day VWAP for the 10-day trading period ending on the day prior to the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "  ***Securities***" shall mean collectively, the Convertible Notes, the Note CDIs, the Warrants and the Warrant CDIs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "  ***Transaction Documents***" means this Agreement, the Convertible Notes and the Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "  ***VWAP***" means volume weighted average price for the CDIs on the ASX.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "  ***Warrant***" shall mean the one or more warrants to purchase CDIs (such CDIs, the "  ***Warrant CDIs***") issued to the Lender pursuant to Section 2.2 below, the form of which is attached hereto as Exhibit B.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Purchase and Sale of the Notes and Warrants** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.1 Issuance of Convertible Notes**. In return for the Consideration paid by the Lender at the Closings (as defined below), the Company shall sell and issue to the Lender one or more Convertible Notes. Each Convertible Note shall have an original principal amount equal to the Consideration paid by the Lender for the Convertible Note as set forth in the Investment Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.2 Issuance of Warrants**. In consideration for the Lender's purchase of a Convertible Note at a Closing, the Company agrees to issue to the Lender a Warrant to acquire a number of Warrant CDIs equal to the product of (a) the amount equal to 10% of the Consideration represented by the corresponding Convertible Note with which the applicable Warrant was issued, *divided* by (b) the Reference Price.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **The Closings** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.1 Initial Closing and Delivery**.

**(a) Initial Closing**. Subject to the terms and conditions of this Agreement, the Lender agrees to deliver to the Company at the Initial Closing the Consideration in the amount equal to $2,325,000.00 (the "***Initial Closing Consideration Amount***"), and the Company agrees to deliver to the Lender at the Initial Closing or as soon as reasonably practical thereafter, a Convertible Note and the Warrant in return for the Initial Closing Consideration Amount provided to the Company. The initial closing of the purchase and sale of such Convertible Note and Warrant shall take place on December 23, 2022 (which time and place are designated as the "***Initial Closing***" and together with the Second Tranche Closing (as defined below), each a "***Closing***" and collectively, the "***Closings***").

**(b) Delivery**. On or prior to the Initial Closing, the Lender will cause the delivery of payment to the Company of the Initial Closing Consideration Amount, which payment shall be made by check payable to the Company, by wire transfer of immediately available funds to a bank account designated by the Company, or any combination thereof, and, as soon as practicable thereafter, the Company will deliver to the Lender a duly executed (i) Convertible Note in the principal amount equal to the Initial Closing Consideration Amount and (ii) a Warrant to purchase 907,141 CDIs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.2 Second Tranche Closing and Delivery**.

**(a) Second Tranche Closing**. Subject to (i) the terms and conditions set forth in this Section 3.2 and (ii) the Company's receipt of all requisite approvals (including any stockholder approvals required under the ASX Listing Rules), the Second Tranche Closing shall take place as soon as reasonably practicable following the Initial Closing and after the Company has provided at least 20 days advance written notice to the Lender of such Second Tranche Closing setting forth the date and time for the closing of the purchase and issuance of the additional Convertible Note in the principal amount of $2,675,000.00 (the "***Second Tranche Closing Consideration Amount***") and accompanying Warrant (which time and place are designated as the "***Second Tranche Closing***" and such notice, the "***Second Tranche Trigger Notice***"). The date on which the Second Tranche Closing occurs shall be no more than 30 days, after the delivery of the Second Tranche Trigger Notice to the Lender; provided, however, that such date and time of the Second Tranche Closing may be changed to another date by the written consent of the Company and the Lender. If the Second Tranche Trigger Notice is not provided by the eight month anniversary of the Initial Closing, then the Lender shall have no further obligation to close on the Second Tranche.

**(b) Delivery**. On or prior to the Second Tranche Closing, the Lender will cause the delivery of payment to the Company of the Second Tranche Closing Consideration Amount, which payment shall be made by check payable to the Company, by wire transfer of immediately available funds to a bank account designated by the Company, or any combination thereof, and, as soon as practicable thereafter, the Company will deliver to the Lender a duly executed (i) Convertible Note in the principal amount equal to the Second Tranche Closing Consideration Amount and (ii) a Warrant to purchase 1,043,699 CDIs.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Covenants of the Company** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1 Listing**. The Company shall maintain the quotation of the CDIs on ASX. The Company shall not take any action which could be reasonably expected to result in the delisting or suspension for more than a total of 5 trading days in any 12 month period of the CDIs on the ASX (but excluding any halt in the trading of CDIs that the Company may request under ASX Listing Rule 17.1 for the purposes of managing its continuous disclosure obligations). The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 4.1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2 Fees**. The Company shall be responsible for the payment of any placement agent's fees, financial advisory fees, transfer agent fees or broker's commissions relating to or arising out of the transactions contemplated hereby. The Company shall pay, and hold the Lender harmless against, any liability, loss or expense (including, without limitation, reasonable attorneys' fees and reasonable and documented out-of-pocket expenses) arising in connection with any claim relating to any such payment. Except as otherwise set forth in the Transaction Documents, each party to this Agreement shall bear its own expenses in connection with the issuance of the Convertible Notes and Warrants to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3 Compliance with Laws**. The Company shall not violate any law, ordinance or regulation of any Governmental Entity, except where such violations would not reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4 General Solicitation**. None of the Company, any of its affiliates (as defined in Rule 501(b) under the 1933 Act) or any Person acting on behalf of the Company or such affiliate will solicit any offer to buy or offer to sell the Convertible Notes or Warrants by means of any form of general solicitation or general advertising within the meaning of Regulation D, including: (i) any advertisement, article, notice or other communication published in any newspaper, magazine or similar medium or broadcast over television or radio; and (ii) any seminar or meeting whose attendees have been invited by any general solicitation or general advertising.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5 Rule 144**. The Company shall cause the Convertible Notes and Warrants and any CDIs issuable pursuant to the Convertible Notes and Warrants to be eligible to be offered, sold or otherwise transferred by the Lender pursuant to Rule 144 under the 1933 Act, without any requirements as to volume, manner of sale, availability of current public information (whether or not then satisfied) or notice under the 1933 Act and without any requirement for registration under any state securities or "blue sky" law, on and after the date that is twelve months following (i) the Closings with respect to the Convertible Notes and the CDIs issuable as a result of the conversion of such Convertible Notes and (ii) the exercise of the Warrants with respect to the CDIs issuable as a result of the exercise of such Warrants.

**4.6 Share Reserve**. So long as any of the Convertible Notes or Warrants remain outstanding, the Company shall at all times have reserved from its duly authorized and unissued share capital not less than (i) 27,634,299 shares of Class A Common Stock for issuance of Note CDIs upon conversion of the Convertible Notes and (ii) 1,950,840 shares of Class A Common Stock for issuance of Warrant CDIs upon exercise of the Warrants (collectively, the "***Required Reserve Amount***"); provided that at no time shall the number of shares of Class A Common Stock reserved pursuant to this Section 4.6 be reduced below the Required Reserve Amount other than in connection with any stock combination, reverse stock split or other similar transaction. If at any time the number of shares of Class A Common Stock authorized and reserved for issuance is not sufficient to meet the Required Reserve Amount, the Company will promptly take all corporate action necessary to increase the number of authorized and reserved shares of Class A Common Stock to ensure that the number of authorized shares is sufficient to meet the Required Reserve Amount and to otherwise meet the Company's obligations under the Transaction Documents, including, without limitation, (i) calling a special meeting of the stockholders of the Company for such purpose and (ii) using commercially reasonable efforts to cause the Company's management to vote their shares of capital stock of the Company in favor thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.8 Transfer Agent Instructions**. The Company shall issue irrevocable instructions to its transfer agent to issue CDIs registered in the name of the Lender or its nominee, for the CDIs in such amounts as necessary upon a conversion of the Convertible Notes and the exercise of the Warrants in accordance with the terms thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.9 Use of Proceeds**. The Company will use the proceeds from the sale of the Convertible Notes only to finance ordinary capital expenditures of the Company and for no other purpose, including, without limitation, any dividends or other distributions to stockholders or bonuses to officers of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.10 Termination of Covenants**. The covenants of the Company set forth in this Section 4 shall terminate upon the first to occur of the payment in full of all amounts owed under the Convertible Notes or the conversion thereof in accordance with the terms and provisions set forth therein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **Representations and Warranties of the Company** 

The Company hereby represents and warrants to the Lender as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1 Organization, Good Standing and Qualification**. The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware. The Company has the requisite corporate power to own and operate its properties and assets and to carry on its business as now conducted and as proposed to be conducted. The Company is duly qualified and is authorized to do business and is in good standing as a foreign corporation in all jurisdictions in which the nature of its activities and of its properties (both owned and leased) makes such qualification necessary, except for those jurisdictions in which failure to do so would not have a material adverse effect on the Company or its business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2 Corporate Power**. The Company has the requisite corporate power to execute and deliver this Agreement and the requisite corporate power to issue each Convertible Note and Warrant at each Closing and to carry out and perform its obligations under the terms of this Agreement and under the terms of each Convertible Note and Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3 Authorization**. All corporate action on the part of the Company, its directors and its stockholders necessary for the authorization, execution, delivery and performance of this Agreement by the Company and the performance of the Company's obligations hereunder and thereunder, including the issuance and delivery of the Convertible Notes and Warrants and the reservation of the CDIs issuable upon conversion of the Convertible Notes and exercise of the Warrants and the equity securities, if any, issuable upon the conversion or exercise of such CDIs (collectively, the "***Company Equity Securities***") has been taken or will be taken prior to the issuance of such Company Equity Securities. This Agreement, the Convertible Notes and the Warrants, when executed and delivered by the Company, shall constitute valid and binding obligations of the Company enforceable in accordance with their terms, subject to laws of general application relating to bankruptcy, insolvency, the relief of debtors and, with respect to rights to indemnity, subject to federal and state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.4 Issuance of Securities**. When issued and delivered in accordance with the terms of the Transaction Documents, the Note CDIs and Warrant CDIs shall be validly issued, and the shares of Class A Common Stock underlying such CDIs shall be fully paid and non-assessable. The Note CDIs and Warrant CDIs will be free from all preemptive or similar rights, mortgages, defects, claims, liens, pledges, charges, taxes, rights of first refusal, encumbrances, security interests and other encumbrances (collectively "***Liens***") with respect to the issuance thereof, with the Lender being entitled to all rights accorded to a holder of CDIs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.5 No Conflicts**. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Convertible Notes, the Warrants, the Note CDIs and the Warrant CDIs, and the reservation of shares for issuance of the Note CDIs and the Warrant CDIs) will not (i) result in a violation of the Company's certificate of incorporation (as may be amended from time to time, "***Certificate of Incorporation***"), certificate of formation, memorandum of association, articles of association, bylaws or other organizational documents of the Company, or any capital stock or other securities of the Company, (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) in any respect under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company is a party, or (iii) assuming the accuracy of the representations and warranties in Section 6, result in a violation of any law, rule, regulation, order, judgment or decree (including, without limitation, foreign, federal and state securities laws and regulations, and the rules and regulations of the ASX and including all applicable foreign, federal and state laws, rules and regulations) applicable to the Company or by which any property or asset of the Company is bound or affected, assuming, and except in the case of clauses (ii) and (iii) above, for such breaches, violations or conflicts as would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.6 Governmental Consents**. All consents, approvals, orders, or authorizations of, or registrations, qualifications, designations, declarations, or filings with, any Governmental Entity, required on the part of the Company in connection with the valid execution and delivery of this Agreement, and the offer, sale or issuance of the Convertible Notes and Warrants shall have been obtained and will be effective at the Closing, except for the filing of a Form D as may be required under Regulation D, which filing will be made in a timely manner following the Initial Closing. "***Governmental Entity***" means any nation, state, county, city, town, village, district, or other political jurisdiction of any nature, federal, state, local, municipal, foreign, or other government, governmental or quasi-governmental authority of any nature (including any governmental agency, branch, department, official, or entity and any court or other tribunal), multi-national organization or body; or body exercising, or entitled to exercise, any administrative, executive, judicial, legislative, police, regulatory, or taxing authority or power of any nature or instrumentality of any of the foregoing, including any entity or enterprise owned or controlled by a government or a public international organization or any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.7 No General Solicitation; No Placement Agent**. Neither the Company, nor any of its affiliates, nor any Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Securities. The Company has not engaged any placement agent or other agent in connection with the offer or sale of the Securities. The Company shall pay, and hold the Lender harmless against, any liability, loss or expense (including, without limitation, attorney's fees and reasonable and documented out-of-pocket expenses) arising in connection with any claim for the payment of any placement agent's fees, financial advisory fees, or brokers' commissions (other than for Persons engaged by the Lender) relating to or arising out of the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.8 Absence of Certain Changes**. Since September 30, 2022, there has been no Material Adverse Effect and the Company has not (i) declared or paid any dividends, (ii) sold any material assets, individually or in the aggregate, outside of the ordinary course of business, (iii) made any material capital expenditures, individually or in the aggregate, outside of the ordinary course of business or (iv) made any revaluation of any of its material assets other than in the ordinary course of business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.9 Insolvency**. The Company has not taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization, receivership, liquidation or winding up, nor does the Company have any knowledge or reason to believe that any of its creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact which would reasonably lead a creditor to do so. The Company is not, as of the Effective Date and as of the Initial Closing, and after giving effect to the transactions contemplated hereby to occur on the Initial Closing will not be, Insolvent (as defined below). For purposes of this Section, "***Insolvent***" means, (i) with respect to the Company, (A) the present fair saleable value of the Company's assets is less than the amount required to pay the Company's total Indebtedness (as defined below), (B) the Company is unable to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured or (C) the Company intends to incur or believe that they will incur debts that would be beyond its ability to pay as such debts mature; and (ii) (A) the present fair saleable value of the Company's assets is less than the amount required to pay its total Indebtedness, (B) the Company is unable to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured or (C) the Company intends to incur or believes that it will incur debts that would be beyond its ability to pay as such debts mature.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.10 Listing and Trading**. During the one year prior to the Effective Date, (i) trading in the CDIs has not been suspended by the ASX or any other Australian regulatory agency and (ii) the Company has received no communication, written or oral, from the ASX or any other Australian regulatory agency regarding the suspension or delisting of the CDIs from the ASX (excluding any halt in the trading of CDIs that the Company may request under ASX Listing Rule 17.1 for the purposes of managing its continuous disclosure obligations).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.11 Foreign Corrupt Practices**. The Company and its directors and officers have not, nor, to the Company's knowledge, nor agent or any other person acting for or on behalf of the foregoing (individually and collectively, a "***Company Affiliate***"), have violated the U.S. Foreign Corrupt Practices Act or any other applicable anti-bribery or anti-corruption laws (individually and collectively, "***Anti-Corruption Laws***"), nor, to the Company's knowledge, has any Company Affiliate offered, paid, promised to pay, or authorized the payment of any money, or offered, given, promised to give, or authorized the giving of anything of value, to any officer, employee or any other person acting in an official or unofficial capacity for any Governmental Entity to any political party or official thereof or to any candidate for political office (individually and collectively, a "***Government Official***") or to any person under circumstances where such Company Affiliate knew or was aware of a high probability that all or a portion of such money or thing of value would be offered, given or promised, directly or indirectly, to any Government Official, for the purpose of:

(i) (A) influencing any act or decision of such Government Official in his/her official capacity, (B) inducing such Government Official to do or omit to do any act in violation of his/her lawful duty, (C) securing any improper advantage, or (D) inducing such Government Official to influence or affect any act or decision of any Governmental Entity, or

(ii) assisting the Company in obtaining or retaining business for or with, or directing business to, the Company.

The Company will not use, directly or indirectly, any part of the proceeds of the offering in any manner that would constitute a violation of Anti-Corruption Laws.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.12 Authorized and Outstanding Share Capital; Existing Obligations**. As of the Effective Date, the authorized share capital of the Company consists of (a) 535,000,000 shares of Common Stock, $0.0001 par value per share, 500,000,000 shares of which have been designated "Class A Common Stock", 151,347,625 shares of which are issued and outstanding, and 35,000,000 shares of which have been designated "Class B Common Stock", none of which are issued and outstanding; and (b) 25,000,000 shares of Preferred Stock, $0.0001 par value per share, none of which are issued and outstanding. None of the Company's shares, interests or capital stock is subject to preemptive rights or any other similar rights or Liens suffered or permitted by the Company; (ii) other than a proposed A$15 million pro-rata rights offering to be launched on or about the Effective Date and equity grants awarded to employees, directors and consultants of the Company under equity incentive plans adopted by the Board of Directors of the Company, there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares, interests or capital stock of the Company, or contracts, commitments, understandings or arrangements by which the Company is or may become bound to issue additional shares, interests or shares of the Company or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares, interests or shares of the Company; (iii) there are no agreements or arrangements under which the Company is obligated to register the sale of any of their securities under the 1933 Act; (iv) there are no outstanding securities or instruments of the Company which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company is or may become bound to redeem a security of the Company; (v) there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities; and (vi) the Company does not have any stock appreciation rights or "phantom stock" plans or agreements or any similar plan or agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.13 Indebtedness and Other Contracts**. Except (a) for the Indebtedness (as defined below) owed to Permitted Senior Creditors (as defined in the Convertible Note), and (b) as set forth in the Company's filings with the ASX, the Company, (i) except with respect to those finance leases evidenced by those financing statements shown in the Uniform Commercial Code financing statement index search conducted on December 14, 2022, and previously provided by the Company to the Lender (the "***UCC Search***"), does not have any outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing Indebtedness of the Company or by which the Company is or may become bound, (ii) except with respect to those financing statements shown in the UCC Search, does not have any financing statements securing obligations in any amounts filed against the Company with respect to any of its assets; (iii) is in violation of any term of, or in default under, any contract, agreement or instrument relating to any Indebtedness, except where such violations and defaults would not result, individually or in the aggregate, in a Material Adverse Effect, or (iv) is not a party to any contract, agreement or instrument relating to any Indebtedness, the performance of which, in the judgment of the Company's officers, has or is expected to have a Material Adverse Effect. For purposes of this Agreement: (x) "***Indebtedness***" of any Person means, without duplication, (A) all indebtedness for borrowed money, (B) all obligations issued, undertaken or assumed as the deferred purchase price of property or services (including, without limitation, "finance leases" in accordance with GAAP, but excluding operating leases) (other than trade payables entered into in the ordinary course of business consistent with past practice), (C) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments in excess of $50,000 in the aggregate, (D) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses, (E) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property), (F) all monetary obligations under any leasing or similar arrangement which, in connection with GAAP, consistently applied for the periods covered thereby, is classified as a finance lease, (G) all indebtedness referred to in clauses (A) through (F) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien upon or in any property or assets (including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness, and (H) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G) above; and (y) "***Contingent Obligation***" means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any Indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.14 Litigation**. There are no pending actions, suits, proceedings or investigations against or commenced by the Company or its properties (nor has the Company received written notice of any threat thereof) before any court or governmental agency that questions (i) the validity of the Transaction Documents or the right of the Company to enter into them or the right of the Company to perform its obligations contemplated thereby or (ii) that if determined adversely to the Company would or could reasonably be expected to affect the business of the Company or result in any change in the current equity ownership of the Company. The Company is not a party to or subject to the provisions of any order, writ, injunction, judgment or decree of any court or government agency or instrumentality. There is no action, suit or proceeding initiated by the Company currently pending or which the Company currently intends to initiate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.15 Insurance**. The Company is insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company is engaged. The Company has not been refused any insurance coverage sought or applied for, and the Company does not have any reason to believe that it will be unable to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.16 Employee Relations**. The Company is in material compliance with all applicable federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.17 Intellectual Property**. The Company owns or possesses sufficient legal rights to all Company Intellectual Property without any known conflict with, or infringement of, the rights of others. To the Company's knowledge, no product or service marketed or sold or proposed to be marketed or sold by the Company violates or will violate any license or infringes or will infringe any intellectual property rights of any other party that may be in existence now. The Company has not received any communications alleging that the Company has violated or, by conducting its business, would violate any of the patents, trademarks, service marks, tradenames, copyrights, trade secrets, mask works or other proprietary rights or processes of any other Person.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.18 Investment Company Status**. The Company is not, and upon consummation of the sale of the Securities and the application of the proceeds thereof, will not be, an "investment company," or a company controlled by an "investment company" as such term is defined in the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.19 Manipulation of Price**. The Company has not, and, to the knowledge of the Company, no Person acting on its behalf has, directly or indirectly, (i) taken any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities, (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company or (iv) paid or agreed to pay any Person for research services with respect to any securities of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.20 Illegal or Unauthorized Payments; Political Contributions**. Neither the Company nor, to the best of the Company's knowledge (after reasonable inquiry of its officers and directors), any of the Company's officers, directors, employees, agents or other representatives of the Company or affiliates, has, directly or indirectly, made or authorized any payment, contribution or gift of money, property, or services, whether or not in contravention of applicable law, (i) as a kickback or bribe to any Person or (ii) to any political organization, or the holder of or any aspirant to any elective or appointive public office to influence official action or secure an improper advantage. To the extent that any officer, director, employee or agent of the Company has made any political contribution(s), such contribution(s) did not involve (directly or indirectly) funds of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.21 Money Laundering**. The operations of the Company is and have been conducted at all times in material compliance with the USA Patriot Act of 2001 and all other applicable U.S. and non-U.S. anti-money laundering laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.22 Sanctions**. Neither the Company or any director, officer, employee or, to the knowledge of the Company, agent or other person acting for or on behalf of the foregoing is the subject or target of any economic or financial sanctions imposed, administered or enforced by the United States (including the U.S. Department of the Treasury Office of Foreign Assets Control and the U.S. Department of State) or other relevant sanctions authority (collectively, "***Sanctions***" and each such Person, a "***Sanctioned Person***"). The operations of the Company are, and have been conducted within the past five years, in compliance with applicable Sanctions. The Company will not, directly or indirectly, use any part of the proceeds of this offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other Person, to fund or facilitate any dealings or transactions with, involving or for the benefit of any Sanctioned Person, or otherwise in any manner that would constitute or give rise to a violation of any Sanctions by any Person (including any Person participating in the offering, whether as buyer, underwriter, advisor, investor or otherwise).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.23 Cybersecurity**. The information technology assets and equipment, computers, systems, networks, hardware, software, websites, applications, and databases used or owned by, or leased or licensed to, the Company (collectively, "***IT Systems***") are adequate for, and operate and perform in all material respects as required in connection with the operation of the business of the Company as currently conducted, and to the Company's knowledge, free and clear of all material bugs, errors, defects, Trojan horses, time bombs, malware and other corruptants. The Company has implemented and maintained commercially reasonable physical, technical and administrative controls, policies, procedures, and safeguards to maintain and protect its material confidential information and the integrity, continuous operation, redundancy and security of all IT Systems and data, including Personal Data, used in connection with its business. "***Personal Data***" means (i) a natural person's name, street address, telephone number, e-mail address, photograph, social security number or tax identification number, driver's license number, passport number, credit card number, bank information, or customer or account number; (ii) any information which would qualify as "personally identifying information" under the Federal Trade Commission Act, as amended; (iii) "personal data" as defined by the European Union General Data Protection Regulation ("***GDPR***") (EU 2016/679); (iv) any information which would qualify as "protected health information" under the Health Insurance Portability and Accountability Act of 1996, as amended by the Health Information Technology for Economic and Clinical Health Act (collectively, "***HIPAA***"); and (v) any other piece of information that allows the identification of such natural person, or his or her family, or permits the collection or analysis of any data related to an identified person's health or sexual orientation. There have been no breaches, violations, outages or unauthorized uses of or accesses to same, except for those that have been remedied without material cost or liability or the duty to notify any other person, nor any incidents under internal review or investigations relating to the same. The Company is presently in material compliance with all applicable laws or statutes and all judgments, orders, rules and regulations of any court or arbitrator or governmental or regulatory authority, internal policies and contractual obligations relating to the privacy and security of IT Systems and Personal Data and to the protection of such IT Systems and Personal Data from unauthorized use, access, misappropriation or modification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.24 Compliance with Data Privacy Laws**. The Company is, and at all prior times was, in material compliance with all applicable state and federal data privacy and security laws and regulations, including without limitation HIPAA, and the Company has taken commercially reasonable actions to prepare to comply with, and since May 25, 2018, have been and currently are in compliance with, the GDPR (EU 2016/679) (collectively, the "***Privacy Laws***"). To ensure compliance with the Privacy Laws, the Company has in place, complies with, and takes appropriate steps reasonably designed to ensure compliance in all material respects with its policies and procedures relating to data privacy and security and the collection, storage, use, disclosure, handling, and analysis of Personal Data (the "***Policies***"). The Company has at all times made all disclosures to users or customers required by applicable laws and regulatory rules or requirements, and none of such disclosures made or contained in any Policy have, to the knowledge of the Company, been inaccurate or in violation of any applicable laws and regulatory rules or requirements in any material respect. The Company: (i) has not received notice of any actual or potential liability under or relating to, or actual or potential violation of, any of the Privacy Laws, and has no knowledge of any event or condition that would reasonably be expected to result in any such notice; (ii) is currently conducting or paying for, in whole or in part, any investigation, remediation, or other corrective action pursuant to any Privacy Law; or (iii) is a party to any order, decree, or agreement that imposes any obligation or liability under any Privacy Law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.25 No Disqualification Event**. With respect to Securities to be offered and sold hereunder in reliance on Rule 506(b) under the 1933 Act ("***Regulation D Securities***"), none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company participating in the offering contemplated hereby, or, to the Company's knowledge, any beneficial owner of 20% or more of the Company's outstanding voting equity securities, calculated on the basis of voting power, nor any promoter (as that term is defined in Rule 405 under the 1933 Act) connected with the Company in any capacity at the time of sale (each, an "***Issuer Covered Person***" and, together, "***Issuer Covered Persons***") is subject to any Disqualification Event pursuant to Rule 506(d) (a "***Disqualification Event***"), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Lender a copy of any disclosures provided thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.26 Absence of Liens**. Except as evidenced by the financing statements shown in the UCC Search, the property and assets that the Company purports to own are free and clear of all mortgages, deeds of trust, liens, loans and encumbrances, except for (i) statutory liens for the payment of current taxes that are not yet delinquent, and (ii) encumbrances and liens that arise in the ordinary course of business and do not materially impair the Company's ownership or use of such property or assets (including liens in respect of pledges or deposits under workers' compensation laws or similar legislation and liens, encumbrances and defects in title which do not have a Material Adverse Effect). With respect to the property and assets it leases, the Company is in compliance in all material respects with such leases and, to its knowledge, holds a valid leasehold interest free of any liens, claims or encumbrances other than those of the lessors of such property or assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.27 Tax Returns and Payments**. There are no federal, state, county, local or foreign taxes due and payable by the Company which have not been timely paid or properly reserved. There are no accrued and unpaid federal, state, country, local or foreign taxes of the Company which are due, whether or not assessed or disputed. There have been no examinations or audits of any tax returns or reports by any applicable federal, state, local or foreign governmental agency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Representations and Warranties of the Lender** 

In connection with the transactions provided for herein, the Lender hereby represents and warrants to the Company that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1 Authorization**. This Agreement constitutes the Lender's valid and legally binding obligation, enforceable in accordance with its terms, except as may be limited by (i) applicable bankruptcy, insolvency, reorganization, or similar laws relating to or affecting the enforcement of creditors' rights and (ii) laws relating to the availability of specific performance, injunctive relief or other equitable remedies. The Lender represents that it has full power and authority to enter into this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2 Purchase for Own Account**. The Lender acknowledges that this Agreement is made with the Lender in reliance upon the Lender's representation to the Company that the Convertible Notes and the Warrants and any CDIs issuable upon conversion of the Convertible Notes and exercise of the Warrants (collectively, the "***Securities***") will be acquired for investment for the Lender's own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, and that the Lender has no present intention of selling, granting any participation in, or otherwise distributing the same. By executing this Agreement, the Lender further represents that the Lender does not have any contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such Person or to any third Person, with respect to the Securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.3 Disclosure of Information**. The Lender acknowledges that it has received all the information it considers necessary or appropriate for deciding whether to acquire the Securities. The Lender further represents that it has had an opportunity to ask questions and receive answers from the Company regarding the terms and conditions of the offering of the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.4 Investment Experience**. The Lender is an investor in securities of companies in the development stage and acknowledges that it is able to fend for itself, can bear the economic risk of its investment and has such knowledge and experience in financial or business matters that it is capable of evaluating the merits and risks of the investment in the Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.5 Accredited Investor**. The Lender is an "accredited investor" within the meaning of Rule 501 of Regulation D of the U.S. Securities and Exchange Commission (the "***SEC***"), as presently in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.6 Restricted Securities**. The Lender understands that the Securities are characterized as "restricted securities" under the U.S. federal securities laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such laws and applicable regulations such securities may be resold without registration under the U.S. Securities Act of 1933, as amended (the "***U.S. Securities Act***"), only in certain limited circumstances. The Lender represents that it is familiar with SEC Rule 144, as presently in effect, and understands the resale limitations imposed thereby and by the U.S. Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.7 Further Limitations on Disposition**. Without in any way limiting the representations and warranties set forth above, the Lender further agrees not to make any disposition of all or any portion of the Convertible Notes or the Warrants except (a) certain transfers in the event the Holder's continued ownership of this Note would result in a violation of the excise tax provisions set forth in Section 4941-4945 of the Internal Revenue Code or (b) a transfer to a public charity that is an accredited investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.8 Legends**. It is understood that the Securities may bear the following or a similar legend:

"THE ISSUANCE AND SALE OF THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER EITHER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR APPLICABLE BLUE SKY LAWS, AND ARE SUBJECT TO CERTAIN INVESTMENT REPRESENTATIONS. THESE SECURITIES MAY NOT BE SOLD, OFFERED FOR SALE OR TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION UNDER THE ACT AND SUCH APPLICABLE BLUE SKY LAWS, OR AN OPINION OF COUNSEL OR OTHER EVIDENCE SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.9 Confidentiality**. The Lender shall keep confidential and will not disclose or divulge any information regarding the Company or its business (including, but not limited to, its business plans, financial projections or financial results). Notwithstanding the foregoing, this confidentiality obligation shall not apply to the extent (i) the Lender is required to disclose such information by law or legal process after the Lender has requested and pursued confidential treatment to the extent reasonably possible, or (ii) such information is or becomes generally available to the public through no fault of the Lender or the Lender's affiliates or representatives.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Covenants of the Lender**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.1 Further Assurances**. The Lender agrees and covenants that at any time and from time to time it will promptly execute and deliver to the Company such further instruments and documents and take such further action as the Company may reasonably require in order to carry out the full intent and purpose of this Agreement and to comply with state or federal securities laws or other regulatory approvals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Conditions to the Company** ' **s Obligations at Closing** 

The obligation of the Company hereunder to issue and sell the Convertible Notes and Warrants to the Lender at each Closing is subject to the satisfaction, at or before the date of each Closing of each of the following conditions thereto, provided that these conditions are for the Company's sole benefit and may be waived by the Company at any time in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1** The Lender shall have executed this Agreement and delivered the same to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2** The Lender shall have delivered the Consideration in accordance with Sections 3.1(b) and 3.2(b) above, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3** The representations and warranties of the Lender shall be true and correct in all material respects as of the Effective Date and as of the date of each Closing as though made at that time (except for representations and warranties that speak as of a specific date), and the Lender shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Lender at or prior to the date of each Closing, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Conditions to the Lender** ' **s Obligations at Closing** 

The obligation of the Lender hereunder to purchase the Convertible Notes and the Warrants at each Closing is subject to the satisfaction, at or before the date of each Closing of each of the following conditions, provided that these conditions are for the Lender's sole benefit and may be waived by the Lender at any time in its sole discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1** The Company shall have executed this Agreement and delivered the same to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2** The Company shall have delivered to the Lender a duly executed Convertible Note and accompanying Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.3** The representations and warranties of the Company shall be true and correct in all material respects as of the Effective Date and as of the date of each Closing as though made at such time (except for representations and warranties that speak as of a specific date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Company at or prior to the date of each Closing, as applicable. The Lender shall have received a certificate, duly executed by the Chief Executive Officer or Chief Financial Officer of the Company, dated as of the applicable Closing, to the foregoing effect and as to such other matters as may be reasonably requested by the Lender in the form reasonably acceptable to the Lender.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.4** The Company shall have delivered to the Buyer a certificate evidencing the formation and good standing of the Company by the State of Delaware as of a date within five days of the applicable Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.5** The Company shall have delivered to the Buyer a certified copy of the Certificate of Incorporation of the Company as certified by the state of Delaware of within five days of the applicable Closing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.6** The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the issuance of the Convertible Notes and the Warrants, including without limitation, those required by the ASX, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.7** No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or Governmental Entity of competent jurisdiction that prohibits the consummation of any of the transactions contemplated by the Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.** **Miscellaneous** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.1 Assignment**. This Agreement, the Convertible Notes and the Warrants may not be assigned by either party without the prior written consent of the other party; provided, however, that this Agreement, the Convertible Notes and the Warrants may be assigned, upon prior written notice to the Company, (a) in the event the Holder's continued ownership of this Note would result in a violation of the excise tax provisions set forth in Section 4941-4945 of the Internal Revenue Code or (b) to a public charity that is an accredited investor, and provided in each case that it is in compliance with applicable U.S. federal and state securities laws and Australian laws (including the ASX Listing Rules). Nothing in this Agreement, expressed or implied, is intended to confer upon any third party any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.2 Governing Law; Venue**. This Agreement shall be governed by and construed under the laws of the State of Minnesota, without giving effect to conflicts of laws principles. The parties hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Minnesota located in the City of Minneapolis and to the jurisdiction of the United States District Court for the District of Minnesota for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement or the transactions contemplated hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.3 Public Announcements**. The Company shall not, and shall cause its affiliates not to, make any public announcement, whether individually or jointly, in respect of this Agreement, including the Convertible Notes and the Warrants, without the prior written consent of the Lender, except as required by applicable law or by the rules and regulations of any securities exchange or national market system upon which the securities of the Company are listed, in which case the Company shall provide a copy of such disclosure at least two business days prior to publication with sufficient time for the Lender to review the nature of such requirements and to comment upon such disclosure prior to publication. Notwithstanding anything to the contrary, in no case may the Company disclose the name or other identifying information of the Lender without its written consent, which shall not be unreasonably withheld.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.4 Titles and Subtitles**. The titles and subtitles used in this Agreement are used for convenience only and are not to be considered in construing or interpreting this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.5 Notices**. All notices required or permitted hereunder shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by electronic mail if sent during normal business hours of the recipient, if not, then on the next business day, (c) five days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the Company at Imricor Medical Systems, Inc., Attn: Chief Executive Officer, 400 Gateway Blvd., Burnsville, MN 55337, and to the Lender at the address set forth on the on the signature pages and the Investment Schedule attached hereto or at such other address(es) as the Company or the Lender may designate by 10 days advance written notice to the other parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.6 Entire Agreement; Modification and Waiver**. This Agreement, the Convertible Notes, the Warrants and the other documents delivered pursuant hereto constitute the full and entire understanding and agreement among the parties with regard to the subjects hereof and thereof. This Agreement, the Convertible Notes or the Warrants may be amended and the observance of any term of this Agreement, the Convertible Notes or the Warrants may be waived (either generally or in a particular instance and either retroactively or prospectively), with the written consent of the Company and the Majority Note Holders. Any waiver or amendment effected in accordance with this Section shall be binding upon each party to this Agreement and any holder of any Convertible Note or Warrant purchased under this Agreement at the time outstanding and each future holder of all such Convertible Notes and Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.7 Finders Fees**. Each party represents that it neither is nor will be obligated for any finder's fee or commission in connection with the transaction contemplated by this Agreement, including, but not limited to, the sale and issuance of the Notes and Warrants. The Lender agrees to indemnify and to hold harmless the Company from any liability for any commission or compensation in the nature of a finder's fee (and the costs and expenses of defending against such liability or asserted liability) for which the Lender or any of its officers, partners, employees or representatives is responsible. The Company agrees to indemnify and hold harmless the Lender from any liability for any commission or compensation in the nature of a finder's fee (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its officers, employees or representatives is responsible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.8 Expenses**. At the Initial Closing, the Company shall pay the reasonable fees and expenses of Faegre Drinker Biddle & Reath LLP, legal counsel to The K.A.H.R. Foundation, subject to receipt of an invoice delivered by The K.A.H.R. Foundation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.9 Delays or Omissions**. It is agreed that no delay or omission to exercise any right, power or remedy accruing to the Lender, upon any breach or default of the Company under the Transaction Documents shall impair any such right, power or remedy, nor shall it be construed to be a waiver of any such breach or default, or any acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring. It is further agreed that any waiver, permit, consent or approval of any kind or character by the Lender of any breach or default under this Agreement, or any waiver by the Lender of any provisions or conditions of this Agreement must be in writing and shall be effective only to the extent specifically set forth in writing and that all remedies, either under this Agreement, or by law or otherwise afforded to the Lender, shall be cumulative and not alternative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.10 Counterparts**. This Agreement may be executed in counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, *e.g.*, www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.11 Waiver of Jury Trial**. EACH PARTY HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE CONVERTIBLE NOTES AND THE WARRANTS OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS AGREEMENT, THE CONVERTIBLE NOTES AND THE WARRANTS OR THE SUBJECT MATTER HEREOF OR THEREOF, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS (INCLUDING NEGLIGENCE), BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT BE SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

*[Signature pages follow]*

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**In Witness Whereof**, the parties have executed this Agreement as of the Effective Date.

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| | |
|:---|:---|
| **<u>COMPANY</u>**: | **<u>COMPANY</u>**: |
| **IMRICOR MEDICAL SYSTEMS, INC.** | **IMRICOR MEDICAL SYSTEMS, INC.** |
| By: | */s/ Steve Wedan* |
| Name: Steve Wedan | Name: Steve Wedan |
| Title: Chief Executive Officer | Title: Chief Executive Officer |

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**[Signature Page to Securities Purchase Agreement]**

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**In Witness Whereof**, the parties have executed this Agreement as of the Effective Date.

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| | |
|:---|:---|
| **<u>LENDER</u>**: | **<u>LENDER</u>**: |
| **THE K.A.H.R. FOUNDATION** | **THE K.A.H.R. FOUNDATION** |
| By: | */s/ Jeannine M. Rivet* |
| Name: | Jeannine M. Rivet |
| Title: | President |

---

**[Signature Page to Securities Purchase Agreement]**

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**INVESTMENT SCHEDULE**

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| | | | | |
|:---|:---|:---|:---|:---|
| Name And<br> Address of<br> Lender(S) | Initial Closing<br> Consideration<br> Amount | Number of Warrant<br> CDIs That the Warrant<br> Issued at the Initial<br> Closing is Exercisable<br> For<br>| Second Tranche<br> Closing<br> Consideration<br> Amount | Number of Warrant<br> CDIs that the Warrant<br> Issued at the Second<br> Tranche Closing is<br> Exercisable For |
| **The K.A.H.R.** <br> **Foundation**<br> 4395 Trillum<br> Way,<br> Minnetrista,<br> MN, 55364 | <br> **$2325000.00** | <br> **907141** | <br> **$2675000.00** | <br> **1043699** |

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**Exhibit A**<br> **Form of Convertible Note**

[See Attached]

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**THIS CONVERTIBLE PROMISSORY NOTE AND THE SECURITIES ISSUABLE UPON THE CONVERSION HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE** "**ACT**"**), OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, TRANSFERRED OR PLEDGED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT THE TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS.**

**CONVERTIBLE PROMISSORY NOTE**

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| | |
|:---|:---|
| $_____________ | _____________ __, 20__ |

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**FOR VALUE RECEIVED**, Imricor Medical Systems, Inc., a Delaware corporation (the "***Company***"), promises to pay to _______________________ or its assigns ("***Holder***") the principal sum of $______________, together with all accrued and unpaid interest thereon as set forth below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Note**. This Convertible Promissory Note (this "***Note***") is issued as part of a series of substantially similar notes (collectively, the "***Notes***") to be issued pursuant to the terms of that certain Securities Purchase Agreement (as may be amended, the "***Purchase Agreement***") dated as of December 16, 2022 (the "***Effective Date***"), to the persons who are parties to the Purchase Agreement and listed on the Investment Schedule attached to the Purchase Agreement, as such Investment Schedule may be amended from time to time to reflect additional holders of the Notes purchased after the date hereof (collectively, the "***Holders***"), and evidences the amount of the indebtedness of the Company held by the Holder (and each other Holder) pursuant to the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Interest**. Interest on the unpaid principal balance of this Note shall accrue at the rate of 10.0% per annum, compounded annually, commencing on the date hereof (the "***Closing Date***"), shall be computed on the basis of a year of 365 days for the actual number of days elapsed and shall continue on the outstanding principal until paid in full or converted into CDIs (as defined below). Notwithstanding the foregoing, upon the occurrence of an Event of Default under Section 6 below and during the continuance thereof, interest shall accrue on the unpaid principal balance of this Note at a default rate of interest of 14.0% per annum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Maturity**. Unless this Note has been converted in accordance with the terms of Section 5 hereof, the entire outstanding principal balance and all unpaid accrued interest thereon under this Note shall become fully due and payable on the earlier of (a) the occurrence of a Change of Control Event (as defined below), and (b) the four year anniversary of the Closing Date (the "***Maturity Date***") and thereafter, when the Company receives a written demand for payment by the Majority Note Holders (as defined herein).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. **Method of Payment; Exchange Rate**. All payments of interest and principal shall be in lawful money of the United States of America and shall be made pro rata among all of the Holders. All payments shall be applied first to accrued interest, and thereafter to principal. All amounts and prices in this Note are set forth in lawful money of the United States of America. Any conversion of any amounts or prices from Australian dollars to United States dollars pursuant to the preceding sentence were converted at the prevailing Australian dollar to United States dollar exchange rate as published by the Reserve Bank of Australia two Business Days (as defined herein) prior to the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. **Payment and Conversion Mechanics**.

**(a) Optional Conversion Prior to Maturity**. At any time during the period following the 36 month anniversary of the Closing Date and ending on the Maturity Date, the Holder may, upon the delivery of a copy of an executed notice of conversion in the form attached hereto as Exhibit A (each, a "***Conversion Notice***"), require the Company to convert, in whole or in part, (i) the then outstanding principal balance of this Note, or a portion thereof, into the number of CDIs that shall be determined by dividing such amount of principal by the Principal Conversion Price, and (ii) the accrued and unpaid interest on the outstanding principal balance of this Note, or a portion thereof, into a number of CDIs that shall be determined by dividing such amount of interest by the Interest Conversion Price.

For purposes of this Note, (A) the term "***Reference Price***" shall mean $0.2563, which is the 10-day VWAP (as defined below) for the 10-day trading period ending on the day prior to the Effective Date; (B) the term "***Principal Conversion Price***" shall mean $0.2691, which is the amount equal to the product of (x) the Reference Price, *multiplied* by (y) 1.05; (C) the term "***Interest Conversion Price***" shall mean the Reference Price; (D) the term "***CDI***" shall mean CHESS Depositary Interest, a unit of beneficial ownership of Class A Common Stock of the Company (with each CDI being equivalent to one share of Class A Common Stock); and (E) the term "***Class A Common Stock***" shall mean a share of Class A Common Stock, $0.0001 par value per share, of the Company.

**(b) Payment or Conversion at Maturity**.

**(i) Payment at Maturity**. The Holder may, by presentment to the Company in writing of a demand therefor on or after the Maturity Date, require the Company to pay the Holder the outstanding principal on this Note and/or accrued and unpaid interest thereon, as applicable.

**(ii) Optional Conversion at Maturity**.

**A. Election to Convert**. Subject to Section 5(b)(ii)(B) below, the Holder may, by presentment to the Company of a Conversion Notice on or after the Maturity Date, elect to convert, either or both of the outstanding principal balance and all unpaid accrued interest thereon into CDIs, in whole or in part, as follows: (A) if the Holder elects to convert accrued but unpaid interest, such accrued but unpaid interest shall convert into a number of CDIs determined by dividing such amount of interest by the Interest Conversion Price, and (B) if the Holder elects to convert outstanding principal, such outstanding principal shall convert into a number of CDIs determined by dividing such amount of principal by the Principal Conversion Price.

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**B. Conditions of Conversion; Rejection**. The option to convert the outstanding principal balance and all unpaid accrued interest thereon under this Note into CDIs under Section 5(b)(ii)(A) is subject to and conditioned upon the Company's determination, in its sole discretion, that any CDIs issued in connection with such an election by the Holder hereunder be freely tradeable on the ASX by the Holder without restriction. In the event the Company determines all or any portion of the CDIs issuable to the Holder upon an election by the Holder hereunder would not be tradeable on the ASX by the Holder without restriction, the Company may reject any such election by the Holder, and, following such determination, the Company shall notify the Holder in writing of the Company's rejection of the Holder's election under Section 5(b)(ii)(A) and the obligation for which the Holder made such election shall instead be paid in accordance with Section 5(b)(i) above.

**(iii) Surrender of Note**. Upon any payment and/or conversion of this Note as described in this Section 5(b), the Holder shall immediately surrender this Note in exchange for, as the case may be, payment thereof and/or issuance by the Company or its transfer agent to the Holder of the appropriate number of CDIs, it being understood by the Holder that any issuance by the Company or its transfer agent to the Holder of CDIs pursuant hereto shall not occur immediately upon such surrender as the transfer agent requires reasonable time to process the transfer and issuance of CDIs.

**(c) Delivery Upon Conversion**. On or before the fourth day on which the ASX (as defined below) is open for trading (a "***Trading Day***") following the date on which the Company has received a properly completed Conversion Notice (or such earlier date as required pursuant to applicable law, rule or regulation for the settlement of a trade initiated on the applicable conversion date) (the "***CDI Delivery Deadline***"), the Company shall, (1) issue such aggregate number of CDIs to which the Holder shall be entitled pursuant to such conversion to the Holder ("***Conversion CDIs***"); (2) apply for official quotation of the Conversion CDIs in accordance with the ASX Listing Rules; and (3) issue to the Holder a holding statement for its Conversion CDIs.

**(d) Delivery Failure**. If the Company shall fail, for any reason or for no reason, on or prior to the applicable CDI Delivery Deadline to issue the Conversion CDIs, then, in addition to all other remedies available to the Holder, (1) the Company shall pay in cash to the Holder on each Trading Day after such CDI Delivery Deadline that the issuance of such CDIs is not timely effected an amount equal to 1.0% of the product of (A) the sum of the number of CDIs not issued to the Holder on or prior to the CDI Delivery Deadline and to which the Holder is entitled, multiplied by (B) the volume weighted average price ("***VWAP***") for the CDIs on the Australian Securities Exchange (the "***ASX***") for the day the issuance of such CDIs is not timely effected and (2) the Holder, upon written notice to the Company, may void its Conversion Notice with respect to, and retain or have returned (as the case may be) any portion of this Note that has not been converted pursuant to such Conversion Notice, provided that the voiding of a Conversion Notice shall not affect the Company's obligations to make any payments which have accrued prior to the date of such notice pursuant to this Section 5(d) or otherwise.

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**(e) Automatic Payment upon Change of Control**. Upon the occurrence of a Change of Control Event (as defined below) prior to the payment or conversion of this Note pursuant to Sections 5(a) or 5(b) above, then the Holder shall, immediately prior to the consummation of any such Change of Control Event and in complete satisfaction of this Note, automatically and without any further action required by the Company or the Holder, receive the greater of (i) an amount equal to 125% of the then outstanding principal balance of this Note, together with accrued and unpaid interest thereon, and (ii) the amount the Holder would have received in respect of such Change of Control Event had the then outstanding principal balance of this Note, together with accrued and unpaid interest thereon, been converted into CDIs at a conversion price per CDI equal to the volume weighted average price of the Company's CDIs on the ASX for the ten-day period ending on the date immediately preceding the date of consummation of the Change of Control Event. Upon receipt of such payment by the Holder, the Note will automatically be deemed satisfied in full and cancelled without the need of presentment or surrender therefor.

For the purposes of this Note, the term "***Change of Control Event***" means: (i) any consolidation or merger of the Company into or with any other entity or entities that results in the exchange of outstanding shares of capital stock of the Company for securities or other consideration issued or paid or caused to be issued or paid by any such entity or affiliate thereof (other than a merger to reincorporate the Company in a different jurisdiction or a merger or consolidation in which the holders of outstanding shares of the capital stock of the Company become, solely by means of such merger or consolidation, the holders of a majority of the voting securities of such other entity) and the holders of the Company voting securities immediately prior to the consolidation or merger hold less than 50% of the outstanding voting securities following such merger or consolidation, (ii) the transfer of 50% or more of the voting securities of the Company, other than pursuant to a bona fide financing transaction for the purposes of raising capital, or (iii) the sale, transfer or other disposition by the Company of all or substantially all its assets.

**(f) Beneficial Ownership Block**. Notwithstanding any other provision in this Section 5, if, upon a conversion into CDIs of the outstanding principal balance and all unpaid accrued interest thereon under this Note pursuant to the terms hereof would result in the Holder and its affiliates becoming the holder of record of at least 10% of the issued and outstanding CDIs of the Company (the "***Beneficial Ownership Block Threshold***"), then the Company shall reject the conversion (and issue a stop transfer order to its transfer agent with respect to the same) of any amount of outstanding principal balance and/or accrued unpaid interest thereon that would result in CDIs being issued to the Holder or its affiliates in excess of the Beneficial Ownership Block Threshold. Any amount of outstanding principal balance and/or accrued unpaid interest thereon under this Note rejected for conversion pursuant to this Section 5(d) shall promptly be paid by the Company to the Holder without any further action required by the Holder. The Holder may change the Beneficial Ownership Block Threshold at any time by notice to the Company, including reducing it to 0%.

**(g) Cleansing Notice**. To ensure free tradability of the CDIs upon any issuance thereof in connection with the conversion of the outstanding principal balance and/or accrued unpaid interest thereon under this Note pursuant to the terms hereof, the Company shall issue a "cleansing statement" (i) on or within two Business Days prior to the Closing Date under Section 708A(12C)(e) of the Corporations Act 2001 (Cth) (the "***Corporations Act***") as amended by ASIC Corporations (Sale Offers: Securities Issued on Conversion of Convertible Notes) Instrument 2016/82, or (ii) on conversion of the Note under Section 708A(5)(e) of the Corporations Act.

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**(h) Payment of Taxes**. The Company shall not be required to pay any tax that may be payable in respect of any transfer involved in the issue and delivery of CDIs on conversion of this Note in a name other than that of the Holder (or in street name), and the Company shall not be required to issue or deliver any such CDIs or property unless and until the person or persons (other than the Holder or the custodian in whose street name such shares are to be held for the Holder's account) requesting the issuance thereof shall have paid to the Company the amount of any such tax or shall have established to the satisfaction of the Company that such tax has been paid.

**(i) Fractional CDIs**. The Company shall not issue any fraction of a CDI upon any conversion pursuant to this Section 5. If an issuance would result in the issuance of a fraction of a CDI, the Company shall round such fraction of a CDI up to the nearest whole CDI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. **Default**.

**(a)** The following are Events of Default:

**(i)** the Company fails to make a payment of principal or interest on the Note when such payment becomes due and payable;

**(ii)** any representation or warranty set forth herein or in the Purchase Agreement or any other document executed in connection therewith shall be untrue in any material respect on the date as of which the facts set forth are stated or certified;

**(iii)** the suspension from trading or the failure of the CDIs to be trading or listed (as applicable) on the ASX (unless such trading or listing is transferred to another national securities exchange) for a period of more than a total of five Trading Days in any 12 month period, excluding for the purposes of this Section 6(a)(iii) any halt in the trading of CDIs that the Company may request under ASX Listing Rule 17.1 for the purposes of managing its continuous disclosure obligations);

**(iv)** except to the extent the Company is in compliance with Section 7(b) below, at any time after the tenth consecutive day following an Authorized Share Failure;

**(v)** the Company violates any material provision of this Note or the Purchase Agreement and such violation is not cured within thirty days of the Company's receipt of notice of such violation;

**(vi)** the commencement by the Company of a voluntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other similar law or of any other case or proceeding to be adjudicated a bankrupt or insolvent, or the consent by it to the entry of a decree, order, judgment or other similar document in respect of the Company in an involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other similar law or to the commencement of any bankruptcy or insolvency case or proceeding against it, or the filing by it of a petition or answer or consent seeking reorganization or relief under any applicable federal, state or foreign law, or the consent by it to the filing of such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial part of its property, or the making by it of an assignment for the benefit of creditors, or the execution of a composition of debts, or the occurrence of any other similar federal, state or foreign proceeding, or the admission by it in writing of its inability to pay its debts generally as they become due, the taking of corporate action by the Company in furtherance of any such action or the taking of any action by any Person to commence a Uniform Commercial Code foreclosure sale or any other similar action under federal, state or foreign law;

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**(vii)** the entry by a court of (i) a decree, order, judgment or other similar document in respect of the Company of a voluntary or involuntary case or proceeding under any applicable federal, state or foreign bankruptcy, insolvency, reorganization or other similar law or (ii) a decree, order, judgment or other similar document adjudging the Company as bankrupt or insolvent, or approving as properly filed a petition seeking liquidation, reorganization, arrangement, adjustment or composition of or in respect of the Company under any applicable federal, state or foreign law or (iii) a decree, order, judgment or other similar document appointing a custodian, receiver, liquidator, assignee, trustee, sequestrator or other similar official of the Company or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree, order, judgment or other similar document or any such other decree, order, judgment or other similar document unstayed and in effect for a period of thirty consecutive days;

**(viii)** any Material Adverse Effect (as defined in the Purchase Agreement) that occurs and remains in effect for a period of five Business Days; or

**(ix)** the Company shall generally fail to pay or admit in writing its inability to pay its debts as they become due; or the Company shall apply for, consent to, or acquiesce in the appointment of a trustee, receiver or other custodian for itself or any of its property, or make a general assignment composition, or similar device for the benefit of its creditors; or a trustee, receiver or other custodian shall otherwise be appointed for the Company or any of its assets; an attachment or receivership of assets or any bankruptcy, reorganization, debt arrangement, or other case or proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation proceeding shall be commenced by or against the Company; or the Company shall take any corporate action to authorize, or in furtherance of, any of the foregoing, if such order for relief entered or such proceeding shall not be dismissed or discharged within thirty days of commencement.

**(b) Notice of an Event of Default**. Upon the occurrence of an Event of Default, the Company shall within one Business Day deliver written notice thereof via electronic mail and overnight courier (with next day delivery specified) to the Holder. "***Business Day***" means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed; provided, however, for clarification, commercial banks shall not be deemed to be authorized or required by law to remain closed due to "stay at home", "shelter-in-place", "non-essential employee" or any other similar orders or restrictions or the closure of any physical branch locations at the direction of any governmental authority so long as the electronic funds transfer systems (including for wire transfers) of commercial banks in The City of New York generally are open for use by customers on such day.

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**(c) Holder Rights upon Event of Default**. Notwithstanding anything to the contrary herein, and notwithstanding any conversion that is in process, upon an Event of Default, whether occurring prior to or following the Maturity Date, the Holder may, in its sole discretion, after providing written notice to the Company, elect to require the Company to pay, and the Company shall pay, to the Holder an amount in cash representing (i) 110% of all outstanding principal and accrued and unpaid interest, and the Company shall pay such amounts in cash to the Holder no more than five Business Days following receipt of such notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Reservation Of Authorized Shares**.

**(a) Reservation**. So long as the Note remains outstanding, the Company shall at all times reserve shares of Class A Common Stock for conversion of this Note as set forth in Section 4.6 of the Purchase Agreement.

**(b) Insufficient Authorized Shares**. If, notwithstanding Section 7(a), and not in limitation thereof, at any time while any the Note remains outstanding the Company does not have a sufficient number of authorized and unreserved shares of Class A Common Stock to satisfy its obligation to reserve for issuance upon conversion of the Note at least a number of shares of Class A Common Stock equal to the Required Reserve Amount (as defined in the Purchase Agreement) (an "***Authorized Share Failure***"), then the Company shall use commercially reasonable efforts to take all action necessary to increase the Company's authorized shares of Class A Common Stock to an amount sufficient to allow the Company to reserve the Required Reserve Amount for the Note. Without limiting the generality of the foregoing sentence, as soon as practicable after the date of the occurrence of an Authorized Share Failure, but in no event later than 90 days after the occurrence of such Authorized Share Failure, the Company shall hold a meeting of its stockholders for the approval of an increase in the number of authorized shares of Class A Common Stock. In connection with such meeting, the Company shall provide each stockholder with a proxy statement and shall use its best efforts to solicit its stockholders' approval of such increase in authorized shares of Class A Common Stock and to cause its board of directors to recommend to the stockholders that they approve such proposal. In the event that the Company is prohibited from issuing Shares of Class A Common Stock pursuant to the terms of this Note due to the failure by the Company to have sufficient Shares of Class A Common Stock available out of the authorized but unissued Shares of Class A Common Stock (such unavailable number of Shares of Class A Common Stock, the "***Authorized Failure Shares***"), in lieu of delivering such Authorized Failure Shares to the Holder, the Company shall pay cash in exchange for the redemption of such portion of the Conversion Amount convertible into such Authorized Failure Shares at a daily price equal to the sum of (i) the product of (x) such number of Authorized Failure Shares and (y) the VWAP of the Shares of Class A Common Stock on each Trading Day during the period commencing on the date the Holder delivers the applicable Conversion Notice with respect to such Authorized Failure Shares to the Company and ending on the date of such issuance and payment under this Section 7(b). Nothing contained in Section 7(a) or this Section 7(b) shall limit any obligations of the Company under any provision of the Purchase Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. **Covenants**.

**(a) No Senior Debt**. Except (i) for the Indebtedness (as defined below) owed to Permitted Senior Creditors (as defined below), and (ii) to the extent approved by the Majority Note Holders, during the period commencing on the Initial Closing and continuing while the Notes remain outstanding, the Company shall not, and shall not permit any subsidiary of the Company to, incur any Indebtedness that is equal or senior in right of payment to the Convertible Notes. "***Indebtedness***" of any Person means, without duplication, (A) all indebtedness for borrowed money, (B) all obligations issued, undertaken or assumed as the deferred purchase price of property or services (including, without limitation, "finance leases" in accordance with GAAP, but excluding operating leases) (other than trade payables entered into in the ordinary course of business consistent with past practice), (C) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments in excess of $50,000 in the aggregate, (D) all obligations evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses, (E) all indebtedness created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property), (F) all monetary obligations under any leasing or similar arrangement which, in connection with GAAP, consistently applied for the periods covered thereby, is classified as a finance lease, (G) all indebtedness referred to in clauses (A) through (F) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien upon or in any property or assets (including accounts and contract rights) owned by any Person, even though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness, and (H) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G) above; and (y) "***Contingent Obligation***" means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any Indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto. "***Permitted Senior Creditors***" shall mean, collectively, the following, (x) the North Dakota Department of Commerce, the North Dakota Development Fund or any related parties in connection with one or more loans made to the Company under the Innovation Technology Loan Fund (LIFT) or the North Dakota Development Fund, or (y) any banks, commercial finance lenders, leasing or equipment financing institutions regularly engaged in the business of lending money or other financial institutions under one or more secured or unsecured lines of credit, term loans, equipment leases or other loan facilities.

**(b) Subordination**. Except for the Permitted Senior Creditors, the Company hereby covenants and agrees that it will cause all other holders of Indebtedness of the Company to enter into subordination agreements with the Lender pursuant to which any such holders of Indebtedness shall subordinate their Indebtedness to the Notes.

**(c) MFN**. During the period when the Notes are outstanding, if the Company sells any additional convertible promissory note(s) that are convertible into CDIs to one or more existing or future investors on terms more favorable than those provided to the Lender in the Note or the Purchase Agreement, as the case may be, and as determined by the Holder in its reasonable discretion, then, upon written notice to the Company describing such more favorable terms in reasonable detail, be entitled to any and all such more favorable terms, and the Note shall, subject to the ASX Listing Rules, be deemed amended to confer any and all such more favorable terms on the Holder and its Notes. The Company shall provide the Holder with prompt written notice of the terms of any additional convertible promissory note(s) convertible into CDIs sold by the Company.

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**(d) Business Purpose**. The Company shall not engage in any material line of business substantially different from those lines of business conducted by or publicly contemplated to be conducted by the Company on the Effective Date or any business substantially related or incidental thereto. The Company shall not, directly or indirectly, modify its or their corporate structure or purpose.

**(e) Good Standing**. The Company shall maintain and preserve its existence, rights and privileges, and become or remain duly qualified and in good standing in each jurisdiction in which the character of the properties owned or leased by it or in which the transaction of its business makes such qualification necessary.

**(f) Intellectual Property**. The Company will take all commercially reasonable actions necessary or advisable to maintain all of the intellectual property rights of the Company that are necessary or material to the conduct of its business in full force and effect.

**(g) Security Issuance**. The Company shall not, directly or indirectly, without the prior written consent of the Holder, issue any other securities that would cause a breach or default under the Note.

**(h) No Dividends**. The Company shall not, directly or indirectly, redeem, repurchase or declare or pay any cash dividend or distribution on any of its Equity Securities (as defined in the Purchase Agreement).

**(i) Extension and Usury Laws**. To the extent that it may lawfully do so, the Company (A) agrees that it will not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension or usury law (wherever or whenever enacted or in force) that may affect the covenants or the performance of this Note; and (B) expressly waives all benefits or advantages of any such law and agrees that it will not, by resort to any such law, hinder, delay or impede the execution of any power granted to the Holder by this Note, but will suffer and permit the execution of every such power as though no such law has been enacted.

**(j) Tax**. The Company shall pay when due all taxes, fees or other charges of any nature whatsoever (together with any related interest or penalties) now or hereafter imposed or assessed against the Company or its assets or upon its ownership, possession, use, operation or disposition thereof or upon their rents, receipts or earnings arising therefrom (except where the failure to pay would not, individually or in the aggregate, result in a Material Adverse Effect). The Company shall file on or before the due date therefor all personal property tax returns (except where the failure to file would not, individually or in the aggregate, result in a Material Adverse Effect). Notwithstanding the foregoing, the Company may contest, in good faith and by appropriate proceedings, taxes for which they maintain adequate reserves therefor.

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**(k) Independent Investigation**. At the request of the Holder either (x) at any time when an Event of Default has occurred and is continuing, (y) upon the occurrence of an event that with the passage of time or giving of notice would constitute an Event of Default or (z) at any time the Holder reasonably believes an Event of Default may have occurred and is continuing, the Holder may hire an independent, reputable investment bank selected by the Holder and approved by the Company to investigate as to whether any breach of this Note has occurred (the "***Independent Investigator***"). If the Independent Investigator determines that such breach of this Note has occurred, the Independent Investigator shall notify the Company of such breach and the Company shall deliver written notice to each Holder of such breach. In connection with such investigation, the Independent Investigator may, during normal business hours, inspect all contracts, books, records, personnel, offices and other facilities and properties of the Company and, to the extent available to the Company after the Company uses reasonable efforts to obtain them, the records of its accountants (including the accountants' work papers) and any books of account, records, reports and other papers not contractually required of the Company to be confidential or secret, or subject to attorney-client or other evidentiary privilege, and the Independent Investigator may make such copies and inspections thereof as the Independent Investigator may reasonably request. The Company shall furnish the Independent Investigator with such financial and operating data and other information with respect to the business and properties of the Company as the Independent Investigator may reasonably request. The Company shall permit the Independent Investigator to discuss the affairs, finances and accounts of the Company with, and to make proposals and furnish advice with respect thereto to, the Company's officers, directors, key employees and independent public accountants or any of them (and by this provision the Company authorizes said accountants to discuss with such Independent Investigator the finances and affairs of the Company), all at such reasonable times, upon reasonable notice, and as often as may be reasonably requested. The fees, costs and expenses of the Independent Investigator shall be paid entirely by the Company in the event that the Independent Investigator determines that an Event of Default or any other breach of this Note has occurred.

**(l) Holder Subordination**. The Holder agrees and covenants that at any time and from time to time it will promptly (a) execute and deliver to the Company customary subordination agreements and (b) take such further action as the Company may reasonably require in order to subordinate the Holder's Notes and the Company's indebtedness represented thereby to any future indebtedness of the Company to any Permitted Senior Creditors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. **Remedies**. The remedies of the Holder as provided herein shall be cumulative and concurrent with all other remedies provided by law or in equity and may be pursued singly, successively or together at the sole direction of the Holder and may be exercised as often as occasion therefore shall arise; provided, however, that the Holder shall have no right to exercise any remedial action against the Company unless the Majority Note Holders (as defined below) consent in writing to such remedial action. No act or omission or commission by the Holder, including specifically, any failure to exercise any right, remedy or recourse, shall be deemed a waiver or release of the same, such waiver or release to be effective only as set forth in a written document executed by the Holder and then only to the extent specifically recited therein. A waiver or release with reference to one event shall not be construed as continuing as a bar to, or as a waiver or release of, any subsequent right, remedy or recourse as to any subsequent event.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. **Prepayment**. Except as otherwise provided in Section 5(e) hereof, the Company may not prepay this Note prior to the Maturity Date without the consent of the Holders of a majority of the aggregate principal amount outstanding under the Notes (the "***Majority Note Holders***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. **No Security Interest; Seniority**. The Notes are unsecured obligations of the Company in all respects and, subject to Section 8(a), rank senior in right of payment to all other existing and future Indebtedness. This Note shall rank equal in right of payment to each of the other Notes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. **Miscellaneous**.

**(a) Governing Law; Venue**. This Note shall be governed by construed and under the laws of the State of Minnesota, without giving effect to conflicts of laws principles. The Holder hereby irrevocably and unconditionally submits to the jurisdiction of the state courts of Minnesota located in the City of Minneapolis and to the jurisdiction of the United States District Court for the District of Minnesota for the purpose of any suit, action or other proceeding arising out of or based upon this Note or the transactions contemplated hereby.

**(b) Amendment; Waiver**. Any term of this Note may be amended, and the observance of any term of this Note may be waived, with the written consent of the Company and the Majority Note Holders, as provided in Section 10.6 of the Purchase Agreement. Upon the effectuation of such waiver or amendment in conformance with this Section 12 the Company shall promptly give written notice thereof to the record holders of the Notes who have not previously consented thereto in writing.

**(c) Transfer**. Except for (a) transfers in the event the Holder's continued ownership of this Note would result in a violation of the excise tax provisions set forth in Section 4941-4945 of the Internal Revenue Code or (b) a transfer to a public charity that is an accredited investor, this Note may not be transferred by the Holder without the prior written consent of the Company, which consent may be withheld at the Company's sole discretion. If the Company gives its consent to the transfer of this Note pursuant to the foregoing sentence, then this Note may be transferred only upon its surrender to the Company for registration of transfer, duly endorsed, or accompanied by a duly executed written instrument of transfer in a form satisfactory to the Company. Thereupon, this Note shall be reissued to, and registered in the name of, the transferee, or a new Note for like principal amount and interest shall be issued to, and registered in the name of, the transferee. Interest and principal shall be paid solely to the registered Holder of this Note. Such payment shall constitute full discharge of the Company's obligation to pay such interest and principal. This Note is subject to the terms, conditions and provisions of the Purchase Agreement.

**(d) Distribution Of Assets**. If the Company shall declare or make any dividend or other distributions of its assets (or rights to acquire its assets) to any or all holders of Equity Securities, by way of return of capital or otherwise (including without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (the "***Distributions***"), then the Holder will be entitled to such Distributions as if the Holder had held the number of CDIs acquirable upon complete conversion of this Note (without taking into account any limitations or restrictions on the convertibility of this Note) immediately prior to the date on which a record is taken for such Distribution or, if no such record is taken, the date as of which the record holders of Equity Securities are to be determined for such Distributions.

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**(e) Reissuance Of This Note**.

**(i) Transfer**. If this Note is to be transferred, the Holder shall surrender this Note to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Note (in accordance with Section 10(e)(iv)), registered as the Holder may request, representing the outstanding principal being transferred by the Holder and, if less than the entire outstanding principal is being transferred, a new Note (in accordance with Section 10(e)(iv)) to the Holder representing the outstanding principal not being transferred. The Holder and any assignee, by acceptance of this Note, acknowledge and agree that, following conversion of any portion of this Note, the outstanding principal represented by this Note may be less than the principal stated on the face of this Note.

**(ii) Lost, Stolen or Mutilated Note**. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Note (as to which a written certification and the indemnification contemplated below shall suffice as such evidence), and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary and reasonable form and, in the case of mutilation, upon surrender and cancellation of this Note, the Company shall execute and deliver to the Holder a new Note (in accordance with Section 10(e)(iv)) representing the outstanding principal.

**(iii) Note Exchangeable for Different Denominations**. This Note is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Note or Notes (in accordance with Section 10(e)(iv) and in principal amounts of at least $1,000) representing in the aggregate the outstanding principal of this Note, and each such new Note will represent such portion of such outstanding principal as is designated by the Holder at the time of such surrender.

**(iv) Issuance of New Notes**. Whenever the Company is required to issue a new Note pursuant to the terms of this Note, such new Note (i) shall be of like tenor with this Note, (ii) shall represent, as indicated on the face of such new Note, the principal remaining outstanding (or in the case of a new Note being issued pursuant to Section 10(e)(i) or Section 10(e)(iii), the principal designated by the Holder which, when added to the principal represented by the other new Notes issued in connection with such issuance, does not exceed the principal remaining outstanding under this Note immediately prior to such issuance of new Notes), (iii) shall have an issuance date, as indicated on the face of such new Note, that is the same as the original issue date of the Note such new Note is replacing, (iv) shall have the same rights and conditions as this Note, and (v) shall represent accrued and unpaid interest, if any, from the original issue date of the Note such new Note is replacing.

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**(f) Payment of Collection, Enforcement and Other Costs**. If (a) this Note is placed in the hands of an attorney for collection or enforcement or is collected or enforced through any legal proceeding or the Holder otherwise takes action to collect amounts due under this Note or to enforce the provisions of this Note or (b) there occurs any bankruptcy, reorganization, receivership of the Company or other proceedings affecting Company creditors' rights and involving a claim under this Note, then the Company shall pay the costs incurred by the Holder for such collection, enforcement or action or in connection with such bankruptcy, reorganization, receivership or other proceeding, including, without limitation, attorneys' fees and disbursements. The Company expressly acknowledges and agrees that no amounts due under this Note shall be affected, or limited, by the fact that the purchase price paid for this Note was less than the original principal amount hereof.

**(g) Cancellation**. After all principal, accrued interest and other amounts at any time owed on this Note have been paid in full, this Note shall automatically be deemed canceled, shall be surrendered to the Company for cancellation and shall not be reissued.

**(h) Purchase Agreement**. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement.

**(i) Further Assurances**. The Holder agrees and covenants that at any time and from time to time it will promptly execute and deliver to the Company such further instruments and documents and take such further action as the Company may reasonably require in order to carry out the full intent and purpose of this Note and the transactions contemplated hereby, including, but not limited to, the payment or the conversion into CDIs hereof, and to comply with state or federal securities laws or other regulatory approvals.

**(j) Maximum Rate of Interest**. All agreements between the Company and the Holder are hereby expressly limited so that in no event will the rate of interest and other fees charged or agreed to be charged to the Holder for the use, forbearance, loaning or detention of such indebtedness exceed the maximum permissible interest rate under applicable law (the "***Maximum Rate***"). If for any reason, the interest rate applied exceeds the Maximum Rate, then the interest rate will automatically be reduced to the Maximum Rate. If the Holder receives interest at a rate exceeding the Maximum Rate, the amount of interest received in excess of the maximum amount receivable will be applied to the reduction of principal and not to the payment of interest thereunder.

*[signature page follows]*

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**IN WITNESS WHEREOF**, the Company has duly executed this Note effective as of the day and year first written above.

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| |
|:---|
| **<u>COMPANY</u>**: |
| **IMRICOR MEDICAL SYSTEMS, INC.** |
| By: |
| Name: Steve Wedan |
| Title: Chief Executive Officer |

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**EXHIBIT A**

**CONVERSION NOTICE**

Reference is made to the Convertible Note (the "***Note***") issued to the undersigned by Imricor Medical Systems, Inc., a Delaware corporation (the "***Company***"). In accordance with and pursuant to the Note, the undersigned hereby elects to convert the conversion amount (as defined in the Note) of the Note indicated below into CHESS Depositary Interests (the "***CDIs***") of the Company, as of the date specified below. Capitalized terms not defined herein shall have the meaning as set forth in the Note.

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| |
|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Date of Conversion: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aggregate principal to be converted: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Aggregate accrued and unpaid interest, with respect to such portion of the Aggregate principal to be converted: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; AGGREGATE CONVERSION AMOUNT TO BE CONVERTED: |
| Please confirm the following information: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Conversion Price for the principal: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Conversion Price for the interest |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Number of CDIs to be issued: |

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| |
|:---|
| Please issue the CDIs into which the Note is being converted to Holder, or for its benefit, as follows: |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Issue to: |

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Date: ,

Name of Registered Holder

By:<br> Name:<br> Title:

Tax ID:

E-mail Address:

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**Exhibit B**<br> **Form of Warrant**

[See Attached]

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**THIS WARRANT AND THE SECURITIES ISSUABLE UPON THE EXERCISE HEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE** "***ACT***"**) OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 OR SECTION 904 OF REGULATION S UNDER THE ACT.**

Date of Issuance

_______________, 202_

**IMRICOR MEDICAL SYSTEMS, INC.**<br> **WARRANT TO PURCHASE CHESS DEPOSITARY INTERESTS**

As of the date first written above and for good and sufficient consideration, this Warrant is issued to ___________________________ or its assigns (the "***Holder***") by Imricor Medical Systems, Inc. (the "***Company***").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Purchase of Shares</u>.

**(a)** <u>Number of CDIs</u>. Subject to the terms and conditions set forth herein, the Holder is entitled, upon surrender of this Warrant at the principal office of the Company (or at such other place as the Company shall notify the Holder in writing), to purchase from the Company up to [●] CDIs in respect of fully paid and nonassessable shares of Class A Common Stock. For the purposes of this Warrant, (i) the term "***CDI***" shall mean CHESS Depositary Interest, a unit of beneficial ownership of Class A Common Stock of the Company (with each CDI being equivalent to one share of Class A Common Stock); and (ii) the term "***Class A Common Stock***" shall mean a share of Class A Common Stock, $0.0001 par value per share, of the Company.

**(b)** <u>Exercise Price</u>. The exercise price for CDIs issuable pursuant to this Section 1 (the "***Warrant Securities***") shall be $0.2563 (the "***Exercise Price***"). The Warrant Securities and the Exercise Price shall be subject to adjustment pursuant to Section 7 hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Exercise Period</u>. This Warrant shall be exercisable, in whole or in part, during the term commencing on the date first set forth above and ending at 5:00 p.m. Eastern Standard Time on the five year anniversary of the Effective Date (as defined below) (the "***Exercise Period***"); <u>provided</u>, <u>however</u>, that this Warrant shall no longer be exercisable and become null and void upon the consummation of any "***Termination Event***" defined as the consummation of a Change of Control Event (as defined below). In the event of a Termination Event, the Company shall notify the Holder at least ten days prior to the consummation of such Termination Event. For the purposes of this Warrant, the term "***Change of Control Event***" means: (i) any consolidation or merger of the Company into or with any other entity or entities that results in the exchange of outstanding shares of capital stock of the Company for securities or other consideration issued or paid or caused to be issued or paid by any such entity or affiliate thereof (other than a merger to reincorporate the Company in a different jurisdiction or a merger or consolidation in which the holders of outstanding shares of the capital stock of the Company become, solely by means of such merger or consolidation, the holders of a majority of the voting securities of such other entity) and the holders of the Company voting securities immediately prior to the consolidation or merger hold less than 50% of the outstanding voting securities following such merger or consolidation, (ii) the transfer of 50% or more of the voting securities of the Company, other than pursuant to a bona fide financing transaction for the purposes of raising capital, or (iii) the sale, transfer or other disposition by the Company of all or substantially all its assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Method of Exercise</u>.

**(a)** While this Warrant remains outstanding and exercisable in accordance with Section 2 above, the Holder may exercise, in whole or in part, the purchase rights evidenced hereby. Such exercise shall be effected by:

**(i)** the surrender of the Warrant (or if this Warrant has been destroyed, stolen or has otherwise been misplaced, by delivering to the Company an affidavit of loss duly executed by the Holder acceptable in form and substance to the Company), together with a duly executed copy of the Notice of Exercise attached hereto, to the Company at its principal office (or at such other place as the Company shall notify the Holder in writing); and

**(ii)** the payment to the Company of an amount equal to the aggregate Exercise Price for the number of Warrant Securities being purchased.

**(b)** Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this Warrant is surrendered to the Company as provided in Section 3(a) above. At such time, the person or persons in whose name or names are registered with the Company's transfer agent upon such exercise as provided in Section 3(c) below shall be deemed to have become the holder or holders of record of the Warrant Securities represented by such registration.

**(c)** As soon as practicable after the exercise of this Warrant in whole or in part, but in no event later than four Trading Days after such exercise, the Company at its expense will cause to be issued in the name of, and delivered to, the Holder, or as such Holder (upon payment by such Holder of any applicable transfer taxes) may direct:

**(i)** the number of Warrant Securities to be reflected on the records of the Company's transfer agent to which such Holder shall be entitled, and

**(ii)** in case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate on the face or faces thereof for the number of Warrant Securities equal to the number of such Warrant Securities described in this Warrant minus the number of such Warrant Securities purchased by the Holder upon all exercises made in accordance with Section 3(a) above or Section 4 below. A "***Trading Day***" is a day on which the Australian Securities Exchange is open for trading.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Net Exercise</u>. In lieu of exercising this Warrant for cash, the Holder may elect to receive Warrant Securities equal to the value of this Warrant (or the portion thereof being exercised) by surrender of this Warrant at the principal office of the Company together with notice of such election (a "***Net Exercise***"). A Holder who Net Exercises shall have the rights described in Sections 3(b) and 3(c) hereof, and the Company shall issue to such Holder a number of Warrant Securities computed using the following formula:

![ex41formula.jpg](ex41formula.jpg)

Where

X = The number of Warrant Securities to be issued to the Holder.

Y = The number of Warrant Securities purchasable under this Warrant or, if only a portion of the Warrant is being exercised, the portion of the Warrant being cancelled (at the date of such calculation).

A = The fair market value of one (1) CDI or, if no CDIs are then-registered with the Australian Securities Exchange, then one (1) share of Class A Common Stock (at the date of such calculation).

B = The Exercise Price (as adjusted to the date of such calculation).

For purposes of this Section 4, the fair market value of a CDI shall mean the average of the closing prices of the CDIs (or equivalent shares of Class A Common Stock underlying this Warrant) quoted in the over-the-counter market in which the CDIs (or equivalent shares of Class A Common Stock underlying the Warrant) are traded or the closing price quoted on any exchange or electronic securities market on which the CDIs (or equivalent shares of Class A Common Stock underlying the Warrant) are listed, whichever is applicable, as published on the Australian Securities Exchange website, if such CDIs are listed on the Australian Securities Exchange, or in *The Wall Street Journal*, if not so listed, for the 30 Trading Days prior to the date of determination of fair market value (or such shorter period of time during which such CDIs were traded over-the-counter or on such exchange). If the CDIs (or equivalent shares of Class A Common Stock underlying the Warrant) are not traded on the over-the-counter market, an exchange or an electronic securities market, the fair market value shall be determined in good faith by the Company's Board of Directors; provided that if the Holder does not agree with the Company's Board of Directors' determination such fair market value shall be determined by an investment bank of national or international repute, selected by and paid for by the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Limitations on Disposition</u>.

**(a)** Each certificate or book entry notation representing this Warrant and each certificate representing this Warrant issued to any subsequent transferee of any such certificate or book entry notation, shall be stamped or otherwise imprinted with a legend in substantially the form set forth below:

"THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT") OR UNDER ANY APPLICABLE STATE SECURITIES LAWS, AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED, HYPOTHECATED, OR OTHERWISE TRANSFERRED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS OR UNLESS SOLD PURSUANT TO RULE 144 OR SECTION 904 OF REGULATION S UNDER THE ACT."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Covenants of the Company</u>.

**(a)** <u>Notices of Record Date</u>. In the event of any taking by the Company of a record of the holders of any class of securities for the purpose of determining the holders thereof who are entitled to receive any dividend (other than a cash dividend which is the same as cash dividends paid in previous quarters and stock dividends) or other distribution, the Company shall mail to the Holder, at least ten days prior to such record date, a notice specifying the date on which any such record is to be taken for the purpose of such dividend or distribution.

**(b)** <u>Covenants as to Warrant Securities</u>. The Company covenants and agrees that all Warrant Securities that may be issued upon the exercise of the rights represented by this Warrant will, upon issuance in accordance with the terms hereof, be validly issued and outstanding, fully paid and nonassessable, and free from all taxes, liens and charges with respect to the issuance thereof. The Company further covenants and agrees that the Company will at all times during the Exercise Period, have authorized and reserved, free from preemptive rights, a sufficient number of shares of Class A Common Stock to provide for the exercise of the rights represented by this Warrant. If at any time during the Exercise Period the number of authorized but unissued shares of Class A Common Stock shall not be sufficient to permit exercise of this Warrant, the Company will take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Class A Common Stock to such number of shares as shall be sufficient for such purposes.

**(c)** <u>MFN</u>. During the Exercise Period, if the Company sells any additional warrants that are exercisable for CDIs to one or more existing or future investors on terms more favorable than those provided to the Holder in this Warrant or the Purchase Agreement, as the case may be, and as determined by the Holder in its reasonable discretion, then, upon written notice to the Company describing such more favorable terms in reasonable detail, the Holder shall be entitled to any and all such more favorable terms, and the Warrant shall, subject to the ASX Listing Rules, be deemed amended to confer any and all such more favorable terms on the Holder and its Warrants. The Company shall provide the Holder with prompt written notice of the terms of any additional warrants exercisable for CDIs sold by the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Adjustment of Exercise Price and Number of Warrant Securities</u>. The number and kind of Warrant Securities purchasable upon exercise of this Warrant and the Exercise Price shall be subject to adjustment from time to time as follows:

(a) <u>ASX Listing Rules</u>. For so long as the Company is listed on the ASX, this Section 7 is subject to the listing rules operated by ASX Limited ("***ASX Listing Rules***"). Notwithstanding any other provision of this Warrant, to the extent of any inconsistency: (i) between this Warrant and the ASX Listing Rules, the ASX Listing Rules prevail; and (ii) between this Section 7 and the other terms of this Warrant, this Section 7 prevails.

(b) <u>Subdivisions, Combinations and Other Issuances</u>. If the Company shall at any time after the issuance but prior to the expiration of this Warrant subdivide its Class A Common Stock, by split-up or otherwise, or combine its Class A Common Stock, or issue additional shares of its Preferred Stock or Class A Common Stock as a dividend with respect to any shares of its Class A Common Stock, the number of Warrant Securities issuable on the exercise of this Warrant shall forthwith be proportionately increased in the case of a subdivision or stock dividend, or proportionately decreased in the case of a combination. Appropriate adjustments shall also be made to the Exercise Price payable per share, but the aggregate Exercise Price payable for the total number of Warrant Securities purchasable under this Warrant (as adjusted) shall remain the same. Any adjustment under this Section 7(b) shall become effective at the close of business on the date the subdivision or combination becomes effective, or as of the record date of such dividend, or in the event that no record date is fixed, upon the making of such dividend.

(c) <u>Reclassification, Reorganization and Consolidation</u>. In case of any reclassification, capital reorganization or change in the capital stock of the Company (other than as a result of a subdivision, combination or stock dividend provided for in Section 7(b) above), then, as a condition of such reclassification, reorganization or change, lawful provision shall be made, and duly executed documents evidencing the same from the Company or its successor shall be delivered to the Holder, so that the Holder shall have the right at any time prior to the expiration of this Warrant to purchase, at a total price equal to that payable upon the exercise of this Warrant, the kind and amount of CDIs and other securities or property receivable in connection with such reclassification, reorganization or change as permitted by the ASX Listing Rules by a holder of the same number and type of securities as were purchasable as Warrant Securities by the Holder immediately prior to such reclassification, reorganization or change. In any such case appropriate provisions shall be made with respect to the rights and interest of the Holder so that the provisions hereof shall thereafter be applicable with respect to any CDIs or other securities or property deliverable upon exercise hereof, and appropriate adjustments shall be made to the Exercise Price payable per share hereunder, <u>provided</u> the aggregate Exercise Price shall remain the same.

(d) <u>Reorganizations of Capital</u>. For so long as the Company is listed on the ASX, the rights of Holder will be changed to the extent necessary to comply with the ASX Listing Rules applying to a reorganization of capital at the time of the reorganization.

(e) <u>New Issues</u>. For so long as the Company is listed on the ASX, nothing in this Warrant entitles the Holder to participate in a new issue of securities by the Company, unless this Warrant is exercised.

------

(f) <u>Adjustments</u>. For so long as the Company is listed on the ASX, except in a reorganization of capital of the Company or as permitted by the ASX Listing Rules and required by the terms of this Warrant, Holder has no right to a change in Exercise Price, or a change to the number of Shares over which the Warrant can be exercised. Notwithstanding Section 7(f), in the event the ASX Listing Rules prevail, this Warrant shall be deemed to be revised to reflect the terms of this Section 7 as closely as provided herein and the Company shall promptly pay the Holder an amount in cash equal to any economic losses faced by the Holder due to the limitations imposed by the ASX Listing Rules.

(g) <u>Notice of Adjustment</u>. When any adjustment is required to be made in the number or kind of Warrant Securities purchasable upon exercise of the Warrant, or in the Exercise Price, the Company shall promptly notify the Holder of such event and of the number of Warrant Securities or other securities or property thereafter purchasable upon exercise of this Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>No Fractional CDIs or Scrip</u>. No fractional CDIs or scrip representing fractional CDIs shall be issued upon the exercise of this Warrant, but in lieu of such fractional CDIs the Company shall make a cash payment therefor on the basis of the Exercise Price then in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>No CDI holder Rights</u>. Prior to exercise of this Warrant, the Holder shall not be entitled to any rights of a holder of CDIs with respect to the Warrant Securities, including (without limitation) the right to vote such Warrant Securities, receive dividends or other distributions thereon, exercise preemptive rights or be notified of stockholder meetings, and, except as otherwise provided in this Warrant, such Holder shall not be entitled to any stockholder notice or other communication concerning the business or affairs of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Cleansing Notice</u>. To ensure free tradability of the CDIs issued on exercise of the Warrant pursuant to the terms hereof, the Company shall issue a "cleansing statement" on exercise of the Warrants under Section 708A(5)(e) of the *Corporations Act 2001* (Cth), or otherwise ensure the CDIs are freely tradeable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Transfer of Warrant</u>. Except for (a) certain transfers in the event the Holder's continued ownership of this Warrant would result in a violation of the excise tax provisions set forth in Section 4941-4945 of the Internal Revenue Code or (b) a transfer to a public charity that is an accredited investor, this Warrant may not be transferred by the Holder without the prior written consent of the Company, which consent may be withheld at the Company's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Governing Law</u>. This Warrant shall be governed by and construed under the laws of the State of Minnesota as applied to agreements among Minnesota residents, made and to be performed entirely within the State of Minnesota.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Titles and Subtitles</u>. The titles and subtitles used in this Warrant are used for convenience only and are not to be considered in construing or interpreting this Warrant.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Notices</u>. All notices and other communications given or made pursuant hereto shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party to be notified, (b) when sent by confirmed electronic mail or facsimile if sent during normal business hours of the recipient, and if not so confirmed, then on the next business day, (c) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid, or (d) one (1) day after deposit with a nationally recognized overnight courier, specifying next day delivery, with written verification of receipt. All communications shall be sent to the respective parties at the following addresses (or at such other addresses as shall be specified by notice given in accordance with this Section 14):

If to the Company:

**Imricor Medical Systems, Inc.**

Attn: Chief Executive Officer

400 Gateway Blvd.

Burnsville, MN 55337

If to Holder:

At the addresses shown on the signature pages hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>No Finder</u><u>'</u><u>s Fee</u>. Each party represents that it neither is or will be obligated for any finder's fee or commission in connection with this transaction. The Holder agrees to indemnify and to hold harmless the Company from any liability for any commission or compensation in the nature of a finder's fee (and the costs and expenses of defending against such liability or asserted liability) for which the Holder or any of its officers, partners, employees or representatives is responsible. The Company agrees to indemnify and hold harmless the Holder from any liability for any commission or compensation in the nature of a finder's fee (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its officers, employees or representatives is responsible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Entire Agreement; Amendments and Waivers</u>. This Warrant, the Securities Purchase Agreement dated as of December 16, 2022 (the "***Effective Date***"), between the Company and the Holder (the "***Purchase Agreement***"), the convertible promissory notes issued under the Purchase Agreement and any other documents delivered pursuant hereto or thereto constitute the full and entire understanding and agreement between the parties with regard to the subjects hereof and thereof. Any term of this Warrant may be amended, and the observance of any term of this Warrant may be waived, with the written consent of the Company and the Majority Note Holders, as provided in Section 10.6 of the Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Severability</u>. If any provision of this Warrant is held to be unenforceable under applicable law, such provision shall be excluded from this Warrant and the balance of the Warrant shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

*(signature page follows)*

------

**IN WITNESS WHEREOF**, the parties have executed this Warrant as of the date first written above.

---

| |
|:---|
| **<u>COMPANY</u>**: |
| **IMRICOR MEDICAL SYSTEMS, INC.** |
| By: |
| Name: Steve Wedan |
| Title: Chief Executive Officer |

---

---

| |
|:---|
| <u>ACKNOWLEDGED AND AGREED</u>: |
| **<u>HOLDER</u>**: |
| **THE K.A.H.R. FOUNDATION** |
| By: |
| Name: |
| Title: |
| Address: |

---

------

**<u>NOTICE OF EXERCISE</u>**

**IMRICOR MEDICAL SYSTEMS, INC.** 

Attention: Corporate Secretary

The undersigned hereby elects to purchase, pursuant to the provisions of the Warrant, as follows:

☐ <u> </u> CDIs pursuant to the terms of the attached Warrant, and tenders herewith payment in cash of the Exercise Price of such CDIs in full, together with all applicable transfer taxes, if any.

☐ Net Exercise the attached Warrant with respect to<u> </u> CDIs.

---

| | | |
|:---|:---|:---|
|  |  | **[HOLDER]** |
| Date: |  | By: |
|  | Address: |  |

---

Name in which CDIs should be registered:

------

**<u>ASSIGNMENT FORM</u>**

(To assign the foregoing Warrant, execute this form and supply required information. Do not use this form to purchase CDIs.)

**For Value Received**, the foregoing Warrant and all rights evidenced thereby are hereby assigned to

---

| | |
|:---|:---|
| Name: | |
|  | (Please Print) |
| Address: | |
|  | (Please Print) |

---

Dated:

---

| |
|:---|
| Holder's Signature: |
| Holder's Address: |

---

**NOTE**: The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant. Officers of corporations and those acting in a fiduciary or other representative capacity should provide proper evidence of authority to assign the foregoing Warrant.

## Exhibit 10.3

**Exhibit 10.3**

![thomsongeerlogo.jpg](thomsongeerlogo.jpg)

---

| |
|:---|
| Level 28, Waterfront Place |
| 1 Eagle Street |
| Brisbane QLD 4000 Australia |
| T +61 7 3338 7500 \| F +61 7 3338 7599 |

---

**GEM Capital Commitment Agreement**

Between

**Imricor Medical Systems Inc**

ARBN 633 106 019

(**Company**)

and

**GEM Global Yield LLC SCS**

**(GEM)**

and

**GEM Yield Bahamas Limited**

**(GEMYB)**

------

**Table of Contents**

---

| | | | |
|:---|:---|:---|:---|
| 1 | Definitions and interpretation | Definitions and interpretation | 1 |
|  | 1.1 | Interpretation | 1 |
|  | 1.2 | Interpretation | 6 |
| 2 | Capital Commitment | Capital Commitment | 7 |
|  | 2.1 | Commitment | 7 |
|  | 2.2 | Exclusivity | 7 |
| 3 | Capital Calls | Capital Calls | 7 |
|  | 3.1 | Entitlement | 7 |
|  | 3.2 | Capital Call Procedure | 8 |
|  | 3.3 | Capital Call Conditions | 8 |
|  | 3.4 | Capital Call Limits | 10 |
|  | 3.5 | Requirements for Capital Call Notices | 10 |
|  | 3.6 | Waiver of Compliance | 10 |
| 4 | Pricing | Pricing | 10 |
|  | 4.1 | Calculation of Total Purchase Price | 10 |
|  | 4.2 | Capital Call CDIs | 11 |
|  | 4.3 | Purchase Price | 11 |
|  | 4.4 | Adjustments | 11 |
|  | 4.5 | Disposal during Evaluation Period | 12 |
|  | 4.6 | Extension of Evaluation Period | 12 |
|  | 4.7 | Equity raisings | 12 |
| 5 | Closing | Closing | 12 |
|  | 5.1 | Closing Date | 12 |

---

------

---

| | | | |
|:---|:---|:---|:---|
|  | 5.2 | Actions on closing | 12 |
|  | 5.3 | Actions after closing | 13 |
| 6 | Representations and warranties | Representations and warranties | 14 |
|  | 6.1 | Warranties | 14 |
|  | 6.2 | Application | 14 |
|  | 6.3 | Official quotation | 14 |
|  | 6.4 | Organisation and qualification | 14 |
|  | 6.5 | Issue of CDIs | 15 |
|  | 6.6 | No Event of Default | 15 |
|  | 6.7 | No conflicts | 16 |
|  | 6.8 | Financial statements | 16 |
|  | 6.9 | Information accurate and complete | 17 |
|  | 6.10 | CHESS | 17 |
| 7 | Mutual Representations and Warranties | Mutual Representations and Warranties | 18 |
|  | 7.1 | General | 18 |
|  | 7.2 | Warranties | 18 |
| 8 | Disclosure | Disclosure | 18 |
|  | 8.1 | No announcement or other disclosure of transaction | 18 |
|  | 8.2 | Permitted disclosure | 19 |
| 9 | Indemnity | Indemnity | 19 |
| 10 | Other agreements of the Parties | Other agreements of the Parties | 21 |
|  | 10.1 | Listing | 21 |
|  | 10.2 | Disclosure of material information | 21 |
|  | 10.3 | Negative covenants | 21 |
|  | 10.4 | Holding and trading CDIs | 21 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| 11.0 | Fees and costs | Fees and costs | 22.0 |
|  | 11.1 | Placement Agreement Fee | 22.0 |
|  | 11.2 | Payment | 22.0 |
|  | 11.3 | Cash settlement | 22.0 |
|  | 11.4 | Payment in kind | 23.0 |
|  | 11.5 | Promissory Note | 23.0 |
|  | 11.6 | Late payments | 24.0 |
|  | 11.7 | General costs and expenses | 24.0 |
|  | 11.8 | Statutory charges and duties etc | 24.0 |
| 12.0 | Options | Options | 25.0 |
|  | 12.1 | Grant | 25.0 |
|  | 12.2 | Liquidated damages | 25.0 |
|  | 12.3 | Payment of liquidated damages | 25.0 |
|  | 12.4 | Acknowledgement | 26.0 |
| 13.0 | Goods and services tax | Goods and services tax | 26.0 |
|  | 13.1 | Recovery of GST on supplies and adjustments under this agreement | 26.0 |
|  | 13.2 | Other GST matters | 26.0 |
| 14.0 | Term and termination | Term and termination | 27.0 |
|  | 14.1 | Term | 27.0 |
|  | 14.2 | Events of default | 27.0 |
|  | 14.3 | Consequences of an Event of Default | 28.0 |
|  | 14.4 | Effect of termination | 28.0 |
| 15.0 | Conflict with Constituent Documents | Conflict with Constituent Documents | 29.0 |
| 16.0 | Notices | Notices | 29.0 |
|  | 16.1 | Service of notices | 29.0 |

---

------

---

| | | | |
|:---|:---|:---|:---|
|  | 16.2 | Receipt | 29.0 |
|  | 16.3 | Execution | 30.0 |
|  | 16.4 | Other modes of service permitted | 30.0 |
|  | 16.5 | Interpretation | 30.0 |
| 17 | General | General | 30.0 |
|  | 17.1 | Approvals and consent | 30.0 |
|  | 17.2 | Assignment | 30.0 |
|  | 17.3 | Entire agreement | 30.0 |
|  | 17.4 | Execution of separate documents | 31.0 |
|  | 17.5 | Further acts | 31.0 |
|  | 17.6 | Acknowledgment by the Company | 31.0 |
|  | 17.7 | Stamp duty | 31.0 |
|  | 17.8 | Goods and Services Tax | 31.0 |
|  | 17.9 | Rights cumulative | 31.0 |
|  | 17.10 | Severability | 32.0 |
|  | 17.11 | Variation | 32.0 |
|  | 17.12 | Waiver | 32.0 |
|  | 17.13 | Set off | 32.0 |
|  | 17.14 | Governing law and jurisdiction | 32.0 |
| Schedule 1 | Schedule 1 |  | 33.0 |
|  | Capital Call Notice | Capital Call Notice | 33.0 |
| Schedule 2 | Schedule 2 |  | 34.0 |
|  | Form of Resolution of Directors (clause 3.2(b)) | Form of Resolution of Directors (clause 3.2(b)) | 34.0 |
| Schedule 3 | Schedule 3 |  | 35.0 |
|  | CDI Lending Deed | CDI Lending Deed | 35.0 |

---

------

---

| | | |
|:---|:---|:---|
| Schedule 4 | Schedule 4 | 36.0 |
|  | Form of closing statement (clause 5.2(a)(i)(A)) | 36.0 |
| Schedule 5 | Schedule 5 | 37.0 |
|  | Option terms and conditions | 37.0 |
| Schedule 6 | Schedule 6 | 38.0 |
|  | Form of Promissory Note | 38.0 |

---

------

**This agreement** is made on

---

| | |
|:---|:---|
| between | **Imricor Medical Systems Inc** ARBN 633 106 019 of 400 Gateway Boulevard, Burnsville, 55337- 2559, United States (**Company**) |
| and | **GEM Global Yield LLC SCS** of 412F, Route d'Esch, L-2086 Luxembourg (**GEM**) |
| and | **GEM Yield Bahamas Limited** of CUB Financial Centre, GF5, Lyford Cay, Nassau Bahamas **(GEMYB)** |

---

**Recital**

GEM has agreed to grant to the Company and the Company has agreed to accept an A$30,000,000 Capital Commitment on the terms and conditions set out in this agreement.

**Now it is agreed** as follows:

---

| | |
|:---|:---|
| **1** | **Definitions and interpretation** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 **Interpretation** 

The following terms used in this agreement will bear the following meanings, unless the context otherwise requires:

Words and expressions used but not expressly defined in this agreement, which are also used in the Corporations Act or the Listing Rules, have the same meanings given to those words or expressions in the Corporations Act or the Listing Rules.

**15 Day Trading Volume** has the meaning given in clause 3.4.

**Accounting Standards** means the basis of preparation of the financial information contained in the Company's 2022 Annual Report disclosed to ASX on 6 April 2023;

**Affiliate** means, with respect to any Person, any other Person that gives or receives non-binding investment directions or recommendations to or from such Person or any other Person that, directly or indirectly, Controls, is Controlled by or is under common Control with such Person;

**Applicable Corporate Law** in relation to an entity means all applicable corporate and securities laws in relation to that entity including without limitation the Corporations Act.

**ASIC** means the Australian Securities & Investments Commission or any successor body.

**ASX** means the Australian Securities Exchange operated by ASX Limited ACN 008 624 691.

**ASX Settlement Operating Rules** means the settlement rules of ASX Settlement Pty Ltd.

**Authorisation** includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any consent, authorisation, registration, filing, agreement, notarisation, certificate, permission, licence, approval or exemption from, by or with a Governmental Authority;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in relation to anything which is prohibited or restricted by law if a Governmental Authority takes certain action within a specified period, the expiry of that period without the Governmental Authority taking that action; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) all approvals, permissions or consents required under any applicable laws (including the Corporations Act and the Foreign Acquisitions and Takeovers Act) or the Listing Rules.

**Available Commitment** means the Total Commitment less the aggregate Total Purchase Price already paid or payable by GEM under this agreement.

**Black Scholes Value** means the value of the GEM Options based on the Black Scholes Option Pricing Model obtained from the "OV" function on Bloomberg reflecting:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a risk-free interest rate equivalent to the US treasury bond rate for the 3 year period commencing on the Options Delivery Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) an expected volatility equal to the greater of 60% and the 100 day volatility obtained from the HVT function on Bloomberg as at the Options Delivery Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the underlying price per CDI used in such calculation shall be the average of the VWAPs over 5 consecutive Trading Days,

in each case, as determined by GEM.

**Bloomberg** means Bloomberg Financial Markets.

**Business** in respect of the Company and its Subsidiaries means the businesses they each carry on at the date of this agreement.

**Business Day** means a day on which banks are open for general banking business in Brisbane, Queensland, excluding Saturdays and Sundays.

**Capital Call** means an exercise by the Company of its entitlement under this agreement to require GEM to subscribe for (or to cause another person to subscribe for) CDIs on the terms and conditions of this agreement.

**Capital Call Amount**, in relation to a Capital Call Notice, means the amount calculated under clause 5.2(b).

**Capital Call Date**, in relation to a Capital Call Notice, means the date on which GEM receives from the Company that Capital Call Notice.

**Capital Call Documents**, in relation to a Capital Call Notice, means each of the documents which must be given to GEM under clause 3.2, in relation to that Capital Call Notice.

**Capital Call Notice** means a notice given in accordance with clause 3 and in the form set out in Schedule 1.

**Capital Call CDIs**, in relation to a Capital Call Notice, has the meaning given in clause 4.2.

**Capital Call Limit**, in relation to a Capital Call Notice, means the limit set in accordance with clause 3.4.

**Capital Commitment** means the facility granted under this agreement.

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**CDI** means a CHESS depositary interest issued by CDN which represents a beneficial interest in one fully paid Class A common stock in the Company.

**CDI Lender** means the CDI lender under the CDI Lending Deed.

**CDI Lending Deed** means the CDI lending deed substantially in the form set out in Schedule 3.

**CDN** means CHESS Depositary Nominee Pty Ltd ACN 071 346 506.

**CHESS** means Clearing House Subregister System.

**Cleansing Document** means either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a notice which complies with section 708A(6) of the Corporations Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a prospectus which satisfies the requirements of section 708A(11)(b)(i) of the Corporations Act. A prospectus does not satisfy the the requirements of section 708A(11)(b)(i) of the Corporations Act for so long as it is the subject to an ASIC stop order or interim stop order; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) such other document required in order to allow secondary trading in the CDIs under any Applicable Corporate Laws.

**Closing Date** means, in relation to each Capital Call, the day determined in accordance with clause 5.1.

**Closing Statement** means the statement to be given by GEM to the Company on the Closing Date in accordance with clause 5.2 in the form of Schedule 4.

**Commitment Period** means the period starting on the date of this agreement and ending on the date 3 years from that date.

**Company Group** means the Company and its Controlled Entities.

**Consituent Documents** means the Certificate of Incorporation and bylaws of the Company (as amended from time to time).

**Control** has the meaning given to that expression in section 50AA of the Corporations Act and **Controlled** has a corresponding meaning.

**Controlled Entities** means each entity which the Company Controls as that expression is defined in section 50AA of the Corporations Act.

**Corporate Regulator** in relation to an entity means the Governmental Authority having jurisdiction over that entity in relation to its corporate affairs including the issue and dealings with any shares or other securities of that entity, including without limitation ASIC.

**Corporations Act** means the *Corporations Act 2001* (Cth).

**Disclosure Documents** has the meaning given in clause 6.9(a).

**Electronic Delivery** (including the terms **Electronically Deliver** and **Electronically Delivering**) means receipt by GEM or nominee by electronic registration to GEM's CHESS Account (or such other electronic system which provides for the recording, delivery and transfer of title by way of electronic entries, as may be required by GEM by notice to the Company) of duly and validly issued CDIs, in accordance with the ASX Settlement Operating Rules and procedures of CHESS, and receipt of confirmation by GEM that this has occurred.

------

**Evaluation Period**, in relation to a Capital Call Notice, means the period starting on and from the Trading Day immediately after a Capital Call Date and ending at 5.00 pm on the Trading Day which is 15 consecutive Trading Days after the Capital Call Date, unless the period is extended in accordance with clause 4.6.

**Event of Default** means an event of default described in clause 14.2.

**Fully Diluted** means the share capital of a company determined on the basis that all of the securities which can be **converted** into CDIs have been converted in accordance with the terms and conditions of conversion and GEM's discretion acting reasonably.

**GEM Options** means the Options to be granted to GEM or its nominee under clause 12.1(a).

**Governmental Authority** includes any governmental, semi-governmental, municipal or statutory authority, instrumentality, organisation, body or delegate (including without limitation any town planning or development authority, public utility, environmental, building, health, safety or other body or authority) having jurisdiction, authority or power over or in respect of the Company or the Business carried on by the Company and its Subsidiaries as at the date of this agreement.

**GST** includes any form of goods and services tax or value added tax and, in respect of any taxable supply in Australia, has the meaning given to that term in the GST Act.

**GST Act** means *A New Tax System (Goods and Services Tax) Act 1999* (Cth).

**Liability** means any liability whether present, unascertained, actual, contingent or prospective.

**Lien** with respect to any asset, means any mortgage, lien, pledge, encumbrance, charge or security interest of any kind in or on such asset or the revenues or income thereon or there from save for such matters in the ordinary course of business.

**Listing Rules** means the listing rules of the ASX from time to time in force.

**Liquidated Damages Amount** has the meaning defined in clause 12.2.

**Market Rules** means the ASX Market Rules from time to time in force.

**Material Adverse Effect** means any effect on the business, operations, properties, financial condition or prospects of the Company, its Subsidiaries and their Affiliates, that is material and adverse to the Company, its Subsidiaries and their Affiliates, taken as a whole, and/or any condition, circumstances or situation that would prohibit or otherwise interfere with the ability of the Company to enter into and perform any of its obligations under this agreement in any material respect.

**Material Change in Ownership** occurs in relation to the Company if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a Person (either alone or with its Affiliates) who does not have Control of the Company as at the date of this agreement, subsequently acquires such Control; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the officers and directors of the Company have a Relevant Interest (as that expression is defined in the Corporations Act) of less than 5% of the total number of issued CDIs in the Company.

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**Minimum Fixed Price**, in relation to a Capital Call Notice, means such price per CDI that the Company nominates in a Capital Call Notice. This price will at all times be adjusted proportionately to correspond to the (same proportion) capital reorganisation (if any) of the share capital of the Company, such as a consolidation or division of the Company's share capital, and the corresponding number of CDIs on issue.

**Option** means an option to subscribe for CDIs on the terms and conditions set out in Schedule 5.

**Option Certificate** means a certificate evidencing the grant by the Company to GEM or its nominee in relation to Options in a form which is the same as or substantially similar to the form set out in Schedule 5.

**Options Delivery Date** means each date on which the Company must grant Options to GEM or its nominee in accordance with clause 12.1.

**Option Expiry Date** means the date that is 3 years after the date of this agreement.

**Paid Amount** has the meaning given in clause 11.5(b).

**Person** means an individual or a corporation, a general or limited partnership, a trust, an incorporated or unincorporated association, a joint venture, a limited liability company, a limited liability partnership, a joint stock company, a government (or an agency or political subdivision) or any other entity of any kind.

**Placement Agreement Fee** means the fee payable by the Company to GEMYB in accordance with clause 11.1.

**Potential Event of Default** means any event, thing or circumstance which with the giving of notice or passage of time or both would become an Event of Default.

**Promissory Note** means a promissory note to GEMYB in the form set out in Schedule 6.

**Proposed Capital Call CDIs**, in relation to a Capital Call Notice, means the number of CDIs specified by the Company in the Capital Call Notice as the number of Capital Call CDIs to be subscribed for by GEM or its nominee.

**Purchase Price**, in relation to a Capital Call Notice, means the subscription price per CDI in relation to that Capital Call Notice, determined in accordance with clause 4.3.

**Relevant Capital Call Conditions** mean the conditions in clauses 3.3(a) (listing and quotation of CDIs), 3.3(e) (no breach or default), 3.3(f) (no fraud), 3.3(i) (Authorisations), 3.3(k) (liquidity), 3.3(l) (CDI lending), 3.3(m) (cleansing), 3.3(p) (no Material Change in Ownership),3.3(q) (no Material Adverse Effect) and 3.3(s) (no inquiry, investigation etc), in each case as if the Capital Call Date was the Issue Date (as defined in clause 11.4(a)).

**SSF** means a facility for the issue of shares, securities or CDIs to financial investors structured over time with each tranche and drawdown made at the discretion of the Company.

**Subsidiary or Subsidiaries** means a Person or Persons whose accounts are consolidated with the accounts of the Company or are Controlled Entities of the Company.

**Total Commitment** means A$30,000,000 or such other amount agreed to by all the parties in writing.

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**Total Purchase Price** means in relation to a Capital Call Notice the total purchase price calculated under clause 4.

**Trading Day** has the meaning given to that expression in the Market Rules from time to time.

**Unpaid Placement Agreement Fee** has the meaning given to that expression in clause 11.2.

**VWAP** means, in relation to a Trading Day, the volume weighted average price (in Australian dollars, rounded to four decimal places) of the CDIs traded in the ordinary course of business on the ASX on that Trading Day, excluding block trades, large portfolio trades, permitted trades during the pre-trading hours period, permitted trades during the post-trading hours period, out of hours trades and exchange traded option exercises.

**Westpac Business Finance Rate** means the Mortgage Free Business Finance Rate published by Westpac Banking Corporation from time to time and in the event it is not published, such other comparable base rate determined by GEM in its discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 **Interpretation** 

In this agreement, unless the context otherwise requires:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the headings in this agreement are for convenience only, and shall be ignored in construing its terms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the singular includes the plural and vice versa;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) words importing a gender include the other genders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) other grammatical forms of defined words or phrases have corresponding meanings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a reference to a clause, part of a clause, schedule or annexure is a reference to that clause or part of a clause of or schedule or annexure to this agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a reference to this agreement includes its recitals, schedules and any annexures as it may from time to time be amended and except to the extent that the context clearly otherwise indicates includes all supplemental or collateral deeds whether or not they are expressly incorporated in such reference;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) legislation referred to in this agreement is as amended, re-enacted or replaced from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) a reference to a party is a reference to a party to this agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reference to a party to this agreement includes that party's successors and permitted assigns;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) a reference to a document or agreement, including this agreement, includes a reference to that document or agreement as novated, altered or replaced from time to time and, in the case of this agreement, to any supplemental or collateral document to this agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) a reference to **cents, dollar, A$** or **$**, is a reference to the currency of Australia;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) use of a term denoting subject matter which comprises more than one part or aspect includes a reference to each or any part or aspect of the subject matter;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) a term of this agreement which has the effect of requiring anything to be done on or by a date which is not a Business Day must be interpreted as if it required it to be done on or by the next Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) a reference to a group of Persons is a reference to all of them collectively, to any two or more of them collectively and to each of them individually;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) all payments to be made by a party to GEM or GEMYB must be paid without deduction, counterclaim or set off in cleared and immediately available funds into a bank account nominated by GEM or GEMYB; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) a reference to any time means Brisbane time, unless otherwise indicated.

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| | |
|:---|:---|
| **2** | **Capital Commitment** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 **Commitment** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) GEM grants to the Company a Capital Commitment on the terms and conditions of this agreement under which the Company may, during the Commitment Period, require GEM to subscribe for (or cause to be subscribed for) such a number of CDIs having a total issue price not exceeding the Total Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) GEM agrees that during the Commitment Period it will subscribe for (or cause to be subscribed for) CDIs having a total issue price not exceeding the Total Commitment on the terms and conditions described in this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 **Exclusivity** 

The Company agrees not to enter into a SSF agreement with any investor other than GEM or GEMYB during the Commitment Period. This provision does not limit the Company from raising funds by any means other than pursuant to a SSF and such other means may include, but are not limited to a placement of CDIs, convertible bonds and rights issues.

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| | |
|:---|:---|
| **3** | **Capital Calls** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 **Entitlement** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to this agreement, the Company may at any time during the Commitment Period, make a Capital Call on any of the Available Commitment by following the procedure and satisfying the conditions set out in this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company must not give a further Capital Call Notice:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) at any time during an Evaluation Period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) prior to a Closing Date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) if the completion of any Capital Call would result in GEM, GEMYB or the Company being in breach of this agreement, any applicable law which would make the subscription for CDIs by GEM under the Capital Call unlawful or the Listing Rules.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 **Capital Call Procedure** 

If the Company wishes to drawdown any of the Available Commitment, it must deliver to GEM:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (**Capital Call Notice**) a Capital Call Notice duly executed by the Company which complies with this agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (**directors** ' **resolutions**) an extract from the minutes of a meeting of directors of the Company or from a circulating resolution, certified as correct by a director of the Company, evidencing that the directors of the Company have duly passed resolutions which are in a form which is the same as or substantially similar to those set out in Schedule 2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (**shareholder approval**) if the issue of CDIs to GEM or its nominee requires the approval of the Company in general meeting for any reason:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a certificate signed by two directors of the Company that the approval has been obtained in accordance with law and the Listing Rules; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) an extract from the minutes of the general meeting, certified as correct by two directors of the Company, evidencing that such approval has been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 **Capital Call Conditions** 

GEM's obligations under clause 5 to subscribe for CDIs under this agreement are subject to and conditional upon the following conditions having been satisfied or fulfilled in respect of each Capital Call:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) (**listing and quotation of CDIs**) all of the following have been satsified:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company is admitted to the official list of ASX;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the CDIs are granted quotation on ASX; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) trading in the CDIs on ASX has not been suspended during the 15 Trading Days prior to the date of the Capital Call Notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (**Capital Call procedure**) the Company is entitled under this agreement to make a Capital Call and has complied with the Capital Call procedure in this agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (**Capital Call Limit**) the Capital Call Limits in clause 3.4 not having been exceeded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) (**Capital Call Documents**) GEM having received properly completed and duly executed Capital Call Documents in respect of the relevant Capital Call;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) (**no breach or default**) the Company not being in breach of this agreement and no Event of Default has occurred or subsists as at the relevant Capital Call Date, the relevant Closing Date or will result from the provision of monies under the Capital Call;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) (**no fraud**) there are no reasonable allegation of fraud made against the Company or any of its Controlled Entities or any of their officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) (**availability of funds**) the provision of subscription monies in accordance with the Capital Call Notice will not cause the Available Commitment to be exceeded;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) (**representations and warranties**) each representation and warranty by the Company in this agreement is true and correct and is neither misleading nor deceptive in any respect as at the Capital Call Date or at the relevant Closing Date as though it had been made on and as of each of those dates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (**Authorisations**) all Authorisations necessary to be obtained by the Company for the Capital Call have been obtained and evidence provided to GEM including, without limitation, any approvals required under the Listing Rules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) (**closing trade price**) the closing trade price of a CDI quoted on ASX on the Trading Day immediately preceding the Capital Call Date is equal to or higher than the Minimum Fixed Price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) (**liquidity**) during the 15 Trading Days prior to and excluding the Capital Call Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the CDIs were continuously quoted on ASX; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) there was no actual or threatened trading halt of the CDIs or suspension of the CDIs from quotation (whether at the request of the Company or otherwise). A trading halt or suspension is only taken to have been threatened if the Company has received notice of that threat from ASX;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) (**CDI lending**) all of the following has occurred in respect of each proposed Capital Call:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) GEM has entered into a CDI Lending Deed with the CDI Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the CDI Lender has lent to GEM or its nominee and delivered to either of them under the CDI Lending Deed such a number of CDIs which is no less than the number of CDIs specified in the relevant Capital Call Notice or as otherwise agreed between the parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Company and each CDI Lender have performed, satisfied and complied in all material respects with all covenants, agreements and conditions required by this agreement to be performed, satisfied or complied with by the Company or the CDI Lender (as the case may be) at or prior to the Capital Call Date; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the CDI Lender has otherwise complied with all of its essential obligations under the CDI Lending Deed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) (**cleansing**) the Company has complied with its obligations under clause 5.3 in respect of any earlier Capital Call;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) (**Promissory Note**) the Company has complied with its obligations under clause 11;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) (**grant of Options**) the Company has complied with its obligations under clause 12 (Options);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) (**no Material Change in Ownership**) no Material Change in Ownership has occurred or is reasonably expected to occur;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) (**no Material Adverse Effect**) no Material Adverse Effect has occurred or is reasonably expected to occur;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) (**no substantial holder filings**) unless required by any Applicable Corporate Laws or GEM otherwise agrees, no Capital Call Notice must require GEM to make any announcements or file any shareholder related reports including any substantial holder notice; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) (**no inquiry, investigation etc**) no inquiry, investigation or other proceeding, whether formal or informal, has been commenced, announced or threatened, no order has been issued by any governmental or regulatory organisation or stock exchange and there has been no change of law or policy, or the interpretation or administration thereof, in each case which operates or could operate to prevent, suspend, hinder, delay, restrict or otherwise have a significant adverse effect on the transactions contemplated by this agreement or which could have a material adverse effect on GEM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 **Capital Call Limits** 

The Company cannot require GEM in a Capital Call Notice to subscribe for such a number of CDIs which is more than the number calculated under the following formula:

**Capital Call Limit = 700% x 15 day Trading Volume**

where:

**15 day Trading Volume** means the average daily number of CDIs traded on ASX during the 15 Trading Days prior to and excluding the Capital Call Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 **Requirements for Capital Call Notices** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A Capital Call Notice may be delivered by the Company at any time and must be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the form set out in Schedule 1;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) duly completed and signed by the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) delivered to GEM on a Business Day by no later than 9.00 am on that Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Closing Date specified in a Capital Call Notice must be a Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.6 **Waiver of Compliance** 

The Capital Call procedure in clause 3.2 and Capital Call conditions in clauses 3.3 to 3.5 are for the benefit of GEM only. They may only be waived by GEM in its absolute and sole discretion and only by notice in writing to the Company. Any Capital Call Notice or purported Capital Call which does not comply with this agreement is invalid and ineffective. GEM is under no obligation to confirm a Capital Call or to subscribe for CDIs under this agreement if any of the representations and warranties in this agreement are not true and correct as at the Capital Call Date or if any other Capital Call conditions in clauses 3.3 to 3.5 have not been complied with.

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| | |
|:---|:---|
| **4** | **Pricing** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 **Calculation of Total Purchase Price** 

The Total Purchase Price is the amount which is equal to the number of Capital Call CDIs multiplied by the Purchase Price.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 **Capital Call CDIs** 

The Capital Call CDIs comprise the Proposed Capital Call CDIs as adjusted in accordance with this clause 4.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 **Purchase Price** 

If GEM is required under this agreement to subscribe for CDIs, it must do so at a Purchase Price per CDI equal to the higher of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) 90% of average closing bid price of CDIs during the Evaluation Period as adjusted under clause 4.4(c)(ii); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Minimum Fixed Price.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 **Adjustments** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each of the following events is an **Adjustment Event**:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company cancels a Capital Call Notice;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the closing bid price of CDIs multiplied by 90% is less than the Minimum Fixed Price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) trading in the CDIs on ASX is suspended or halted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the number of CDIs traded on ASX on any Trading Day during the Evaluation Period is less than 25% of the 15 Day Trading Volume (as defined in clause 3.4); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) an event occurs which has a Material Adverse Effect or which in GEM's reasonable opinion is likely to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A **Knockout Day** is a day on which an Adjustment Event occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding anything else contained in this agreement, if a Knockout Day occurs during an Evaluation Period:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Proposed Capital Call CDIs will be reduced by 1/15th for every Knockout Day which occurs during the Evaluation Period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in calculating the average closing bid price in clause 4.3, the closing bid price on any Knockout Day will be disregarded and the number of Trading Days comprising the Evaluation Period will be reduced by the number of Knockout Days that occur during that period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) GEM has the right in its absolute discretion (but not the obligation) to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) reduce the Proposed Capital Call CDIs (following adjustment, if any, under clause 4.4(c)(i)) by up to 50% of the number of Proposed Capital Call CDIs; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) increase the Proposed Capital Call CDIs (with or without adjustment under clause 4.4(c)(i)) by up to 200%, provided that GEM cannot require the Company on the Closing Date to issue any CDIs to GEM or its nominee if to do so would be in breach of any law or the Listing Rules.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.5 **Disposal during Evaluation Period** 

GEM must not, on any Trading Day during the Evaluation Period, sell CDIs representing more than 1/15<sup>th</sup> of the CDIs specified in a Capital Call Notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.6 **Extension of Evaluation Period** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) GEM may extend an Evaluation Period to up to a total of 10 Trading Days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If GEM elects to extend the Evaluation Period in accordance with clause 4.6(a), the Company may request interim Closing Dates for each 5 Trading Day period during the relevant extended Evaluation Period (**Interim Closing Period**).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Company requests an Interim Closing Period in accordance with clause 4.6(b):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) GEM will advance to the Company an amount equal to 90% of the average closing bid price of CDIs during the relevant Interim Closing Period, within 5 Business Days of the end of the relevant Interim Closing Period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Company must repay to GEM the amount of the advance made under clause 4.6(c)(i) in full without set off, counterclaim or deduction on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.7 **Equity raisings** 

If the Company undertakes any equity or equity linked raising within the 12 months after the date of this agreement (Equity Raising):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) GEM may, in its absolute discretion, elect to participate in up to 15% of the Equity Raising on the same terms and conditions as the other equity investors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Company must not announce or proceed with the equity or equity linked raising unless it has first given GEM:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a reasonable opportunity to participate in it in accordance with this clause 4.7; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in all cases, at least 5 clear Business Days notice of the terms and conditions of the proposed equity or equity linked raising (other than pricing for the proposed raising, which will be provided to GEM as soon as reasonably practicable after the pricing has been confirmed) .

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| | |
|:---|:---|
| **5** | **Closing** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 **Closing Date** 

The Closing Date in relation to any given Capital Call is the date which is the Trading Day immediately after the end of the Evaluation Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 **Actions on closing** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to the Company having complied with the Corporations Act, the Listing Rules and the Capital Call procedure in clause 3.2, the Capital Call conditions in clauses 3.3 to 3.5 having been fulfilled (or waived by GEM) and any shareholder approval or regulatory approval required under clause 3.2 having been obtained, on the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) GEM must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) give the Company a Closing Statement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) subscribe for the Capital Call CDIs at the Purchase Price;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) if the allottee of the Capital Call CDIs is a nominee of GEM and is not the CDI Lender or an existing member of the Company, provide to the Company a written consent from the allottee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(I) consenting to the issue of the Capital Call CDIs to it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(II) consenting to become a member of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(III) agreeing to be bound by the Constiutent Documents on the issue of the Capital Call CDIs to it; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) pay the Company the Capital Call Amount (if that amount is positive); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Company must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) issue, allot and Electronically Deliver the Capital Call CDIs to GEM or its nominee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) deliver to GEM or the allottee of the Capital Call CDIs a holding statement evidencing the allotment and issue of the Capital Call CDIs on the Closing Date together with details of all necessary identification numbers and other information necessary to enable the allottee to deal immediately with the issued Capital Call CDIs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) except where clause 5.3(c) applies, lodge with the ASX and Corporate Regulator (if required) a Cleansing Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The **Capital Call Amount** in respect of a Capital Call Notice is an amount equal to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Total Purchase Price calculated under clause 4; less

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any amounts advanced under clause 4.6(c)(i); less

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all and any monies due and payable by the Company to GEM or GEMYB as at the relevant Closing Date under this agreement including monies payable under clause 11 (Fees and costs), clause 12 (Options) and clause 13 (GST).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company hereby requests and authorises GEM to pay directly to GEM or GEMYB (as the case may be) or its nominee any monies specified in clause 5.2(b)(iii) in satisfaction of the Company's obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The obligations of GEM and the Company on the Closing Date are interdependent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 **Actions after closing** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except where clause 5.3(c) applies, on the Business Day immediately after the Closing Date, the Company must lodge with ASX or the Corporate Regulator a Cleansing Document.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company must obtain a grant of quotation from ASX for the Capital Call CDIs within five Business Days after the Closing Date, including complying with any reasonable condition required by ASX as a condition of it granting quotation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This clause 5.3(c) applies if, before the date on which the Capital Call CDIs are issued, the Company has lodged with the Corporate Regulator a prospectus (or other disclosure document) which satisfies the requirements of section 708A(11)(b)(ii) of the Corporations Act (or such equivalent requirement under any Applicable Corporate Laws). A prospectus (or other disclosure document) does not satisfy the requirements of section 708A(11)(b)(ii) of the Corporations Act (or such equivalent requirement under any Applicable Corporate Laws) for so long as it is the subject to a Corporate Regulator intervention (including an ASIC stop order or interim stop order (or other equivalent Corporate Regulator intervention).

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| | |
|:---|:---|
| **6** | **Representations and warranties** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 **Warranties** 

The Company gives to GEM and GEMYB the representations and warranties set out in this clause 6. Each representation and warranty is a separate representation and warranty and is in no way limited by any other representation and warranty. Where a representation or warranty is qualified by announcements by the Company or disclosures which the Company has made to GEM and GEMYB, it is only qualified by written disclosures given to GEM and GEMYB.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 **Application** 

Subject to the disclosures provided to GEM from time to time by the Company in writing and any announcements made by the Company to ASX each of the warranties in this clause 6 applies as at the date of this agreement and on each Capital Call Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 **Official quotation** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company is admitted to the official list of ASX and its CDIs have been granted quotation on ASX and are not suspended from quotation or in trading halt or trading pause.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company has complied with its obligations under the Listing Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) There is no reason that the CDIs could be removed or suspended from official quotation on ASX or the Company removed from the official list of ASX.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 **Organisation and qualification** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company and each of its Subsidiaries is duly qualified to do business and is in good standing in every jurisdiction in which its ownership of material property or the nature of its Business makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No resolution to alter the Constituent Documents having a Material Adverse Effect has been passed or if passed will have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) None of the following has occurred in relation to the Company or any of its Subsidiaries:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) no resolution for their winding up has been passed and no meeting of members or creditors has been convened for that purpose;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) no winding up application has been made to a court, and no event has occurred which would entitle any person to apply to a court to wind them up in insolvency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) no composition or arrangement has been entered into with any of their creditors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) no demand has been received under section 459E of the Corporations Act or equivalent provision under any Applicable Corporate Laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) no receiver or other controller (as that expression is defined in the Corporations Act) has been appointed to them or any of their material assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) none of the entities are externally administered bodies corporate (as that expression is defined in the Corporations Act);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) none of the entities are insolvent within the meaning in section 95A of the Corporations Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) no distress, execution or other similar order or process has been levied on any of their material property or assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) none of the entities has received from a Corporate Regulator any notice or warning of possible cancellation of registration of the Company which cannot be rectified within seven Business Days of receipt;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) no event has occurred which would entitle a person to take any proceeding or step the effect of which would result in the appointment of a receiver or receiver and manager, to the entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) any event or circumstance analogous to the above has occurred under any Applicable Corporate Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 **Issue of CDIs** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon issue of the Capital Call CDIs:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all of the Capital Call CDIs will be validly issued and fully paid and free from all Liens; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Capital Call CDIs will rank equally with all existing CDIs on and from the date of issue in respect of all rights issues, bonus share issues and dividends which have a record date for determining entitlements on or after the date of issue of those Capital Call CDIs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company is issuing the Capital Call CDIs and granting the Options under this agreement to raise capital for use in its business (including for working capital purposes). The Capital Call CDIs and Options are not being issued for the purpose of the person to whom they are being issued selling or transferring those securities, or granting, issuing or transferring interests in, or options, over those securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 **No Event of Default** 

No Event of Default or Potential Event of Default is subsisting or will result from the provision of the Capital Call.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.7 **No conflicts** 

The execution, delivery and performance of this agreement will not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) breach the Constituent Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) result in a material breach of any material agreement, indenture or instrument to which the Company or any Subsidiary is a party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) subject to the Company having obtained all necessary Authorisations for each Capital Call, result in a material violation of any law, rule, court order, (including any Applicable Corporate Laws and the Listing Rules).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.8 **Financial statements** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as disclosed in the financial statements, the Company's financial statements as at 31 December 2022 **(Balance Date**):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) have been prepared by the Company in accordance with the Accounting Standards;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) present a true and fair view of the profit or loss of the Company and its Subsidiaries for the relevant accounting periods to which they relate and the state of affairs of the Company and its Subsidiaries as at the Balance Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) accurately disclose the assets and liabilities of the Company and its Subsidiaries at the Balance Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) provide fully for all liabilities of the Company and its Subsidiaries (including contingent and tax liabilities) as at the Balance Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) are not affected by any unusual or non-recurring item; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) take account of all gains and losses whether realised or unrealised arising from foreign currency transactions as at the Balance Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Since the Balance Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the best of the Company's knowledge and belief, after having made reasonable enquiry, no material change has occurred which would result in a Material Adverse Effect; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Company has not declared or paid any dividend or distribution, nor has there been any other distribution of property to its members.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company or a Subsidiary is the beneficial owner of each of the material assets included in the Company's financial statements except to the extent that a material asset of the Company may, in the ordinary course of business of the Company, have changed, been reduced, or disposed of after the Balance Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company has not since the Balance Date acquired or disposed of any material assets other than in the ordinary course of business of the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) There is no default under any material mortgage, encumbrance or Lien to which the Company or any of its Subsidiaries is a party or to which any material property or assets of the Company or any of its Subsidiaries are subject and there has not occurred since the Balance Date any event which with the passage of time or giving of notice would constitute a default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Company or its Subsidiaries does not have any material debts or liabilities other than those debts and liabilities disclosed in the Company's financial statements and debts and liabilities which have been incurred in the ordinary course of the ordinary business of the Company up to the date of this agreement and are neither of an unusual nature or an unusually large amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Particulars of all material bills of exchange, promissory notes and other negotiable or transferable instruments in respect of which the Company has any Liability (other than cheques drawn by the Company in the ordinary course of business) have been fully disclosed to GEM.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Subject to the accounting provisions in the financial statements, the Company reasonably believes that the material trade debts owing at the Balance Date and the date of this agreement are good debts and will produce the full amount of the debts without deduction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The rate of depreciation applied in respect of each material depreciable asset of the Company in the Company's financial statements has been consistently applied over the previous accounting periods of the Company and is adequate to write down the value of each such fixed asset to its realisable value at the end of its effective working life.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) The Company will upon reasonable request of GEM, make available to GEM such information as GEM may reasonably require in order to verify these warranties, provided that the Company is under no obligation to provide GEM with information which is subject to confidentiality restrictions or which would otherwise result in the Company or any of its Subsidiaries breaching an agreement, law or Authorisation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.9 **Information accurate and complete** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company has lodged, as and when required (or as varied by any relief sought), all documents required to be lodged by it with ASX and the Corporate Regulator (Disclosure Documents).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) At the time they were lodged with the Corporate Regulator or ASX, in all material respects, the Disclosure Documents were true and accurate and not misleading or deceptive (including by way of omission of a material matter) and otherwise complied with all applicable laws

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Company has not, by act or omission, made any disclosure to GEM such that if GEM enters into or completes any of the transactions contemplated under this agreement, a breach by any party of Part 7.10 Division 3 (Insider Trading) of the Corporations Act (or any equivalent Applicable Corporate Law) will occur or arise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.10 **CHESS** 

The Company is a CHESS participant and operates an electronic issuer sponsored sub-register and an electronic CHESS sub-register.

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| | |
|:---|:---|
| **7** | **Mutual Representations and Warranties** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 **General** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each party gives to the other the representations and warranties set out in this clause 7 to the best of its knowledge and belief. Each representation and warranty is a separate representation and warranty and is in no way limited by any other representation or warranty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each of the warranties in this clause 7 applies as at the date of this agreement, on each Closing Date and on each date between them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 **Warranties** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The party:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) is a body corporate validly existing under the laws of its place of incorporation or establishment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has the corporate power to enter into and perform its obligations under this agreement and to carry out the transactions contemplated by this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This agreement is a valid and binding obligation in accordance with its terms and conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Neither the execution nor performance by this agreement nor any transaction contemplated under this agreement will violate in any material respect any provision of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any judgement binding on it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) its constituent documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) subject to the Company having obtained all necessary Authorisations for each Capital Call, any applicable law binding on it; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any other material document, agreement, authorisation or other arrangement binding upon it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each party's decision to enter this agreement has been based solely on their respective independent evaluations.

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| | |
|:---|:---|
| **8** | **Disclosure** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 **No announcement or other disclosure of transaction** 

Except as permitted by clause 8.2 the parties must keep confidential the existence of and the terms of this agreement and any CDI Lending Deed and all negotiations between the parties in relation to the subject matter of this agreement or a CDI Lending Deed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 **Permitted disclosure** 

Nothing in this agreement prevents a person from disclosing matters referred to in clause 8.1:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if disclosure is required to be made by law or the rules of a recognised stock or securities exchange and the party whose obligation it is to keep matters confidential or procure that those matters are kept confidential:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) has not through any voluntary act or omission (other than the execution of this agreement) caused the disclosure obligation to arise; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) has before disclosure is made notified each other party of the requirement to disclose and, where the relevant law or rules permit and where practicable to do so, given each other party a reasonable opportunity to comment on the requirement for and proposed contents of the proposed disclosure;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if disclosure is made by way of a written announcement the terms of which have been agreed in writing by the parties prior to the making of the announcement, which agreement must not be unreasonably withheld or delayed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if disclosure is reasonably required to enable a party to perform its obligations under this agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) to any professional adviser of a party who has been retained to advise in relation to the transactions contemplated by this agreement or to the auditor of a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) with the prior written approval of each party other than the party whose obligation it is to keep those matters confidential or procure that those matters are kept confidential; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) where the matter has come into the public domain otherwise than as a result of a breach by any party of this agreement.

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| | |
|:---|:---|
| **9** | **Indemnity** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to clause 9(b), in consideration of GEM's execution and delivery of this agreement and acquiring the Capital Call CDIs under it and in addition to all of the Company's other obligations under this agreement, the Company must continuously indemnify GEM and GEMYB and their respective lawful successors in title and officers, employees and advisers (collectively, **Indemnified Persons**) from and against any and all third party actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages and expenses in connection therewith (**Indemnified Liabilities**), incurred by any Indemnified Person as a result of, or arising out of, or relating to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any misrepresentation or breach of any representation or warranty made by or on behalf of the Company in this agreement or any other certificate, instrument or document contemplated by it;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any promotional material prepared by the Company or any statements made to any person under clause 8 of this agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any material breach of any obligation of the Company contained in this agreement or any other certificate, instrument or document contemplated by it; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any proceeding, investigation, cause of action, suit or claim brought, made or threatened against an Indemnified Person and arising out of or resulting from the execution, delivery, performance or enforcement of this agreement or any other certificate, instrument or document contemplated by any of them.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The indemnity in clause 9(a) does not extend to and will not be deemed to be an indemnity for an Indemnified Person against:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Indemnified Liabilities arising out of or as a result of the wilful default, misconduct, dishonesty, fraud or gross negligence of the Indemnified Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any penalty or fine which the Indemnified Person is required to pay for any contravention of the Corporations Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any announcement, advertisement or publicity made or distributed by the Indemnified Person in relation to this agreement or the transactions contemplated by this agreement if the content of the announcement, advertisement or publicity was not first approved by the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any obligation of GEM or GEMYB to subscribe for CDIs under this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If an Indemnified Person becomes aware that any act, matter or thing may give rise to any Indemnified Liabilities against it in relation to which the Company would be required to indemnify it under clause 9(a), GEM must notify the Company of the act, matter or thing and give details as far as practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notice given by GEM pursuant to clause 9(c) by any Indemnified Person will operate as notice given on behalf of all Indemnified Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Subject to clause 9(g), the Company will be entitled to defend or institute such legal or other proceedings as it sees fit in respect of any Indemnified Liabilities in the name of any or all Indemnified Persons and conduct the same under the sole management and control of the Company (**Relevant Proceedings**) provided that the Company must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) pay the costs and expenses of the Relevant Proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) indemnify and keep indemnified each Indemnified Person against all Indemnified Liabilities incurred by an Indemnified Person as a result of, or arising out of or in relation to any Relevant Proceedings; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) pay the Indemnified Liabilities contemplated in clause 9(e)(ii) to the relevant Indemnified Person immediately on demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Subject to clause 9(g), GEM must, and where the relevant Indemnified Person is not GEM, GEM must procure the relevant Indemnified Person to, at the expense of the Company on a full indemnity basis to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) take such reasonable action as the Company requests to avoid, dispute, resist, appeal, compromise or defend any Indemnified Liabilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) not admit any Liability for or settle any Indemnified Liabilities without the prior written consent of the Company; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) promptly render all reasonable assistance and co-operation to the Company in the conduct of any legal or other proceedings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Clauses 9(e) and 9(f) will only operate if the Company acknowledges, subject to clauses 9(a) and 9(b), to indemnify the Indemnified Person under clause 9(a).

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| | |
|:---|:---|
| **10** | **Other agreements of the Parties** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 **Listing** 

On and from the first Capital Call Date neither the Company nor any of its Subsidiaries will take any action which GEM would reasonably expect to result in the removal of the Company from the official list of ASX or suspension of quotation of the Capital Call CDIs on ASX except where such action is required by law or by the Listing Rules or in order for the officers of the Company to act in accordance with their duties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 **Disclosure of material information** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company must not disclose to GEM any inside information to which section 1043A of the Corporations Act (or any other equivalent Applicable Corporate Law) would apply (Inside Information).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If the Company, any of its Subsidiaries, or any of its or their respective officers, directors, employees and agents breach clause 10.2(a), in addition to any other remedy, GEM may make a public disclosure, in the form of a press release, public advertisement or otherwise, of any Inside Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) GEM will not have any Liability to the Company, its Subsidiaries, or any of its or their respective officers, directors, employees, shareholders or agents for any loss or damage suffered due to any such disclosure under clause 10.2(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Subject to this clause, the Company must give GEM prior and reasonable opportunity to comment on any submission made to ASX in relation to, and including the form of any notice and explanatory memorandum convening any meeting of its members to approve, the issue of the Capital Call CDIs for the purposes of the Listing Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 **Negative covenants** 

The Company must use reasonable endeavours to ensure that none of the following occurs except where required by law or by the Listing Rules without the prior written approval of GEM, such approval not to be unreasonably withheld:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a reorganisation, reclassification, reconstruction, consolidation or subdivision of the capital of the Company or the creation of any different class of securities in the capital of the Company other than employee options approved by the Company in general meeting or issued pursuant to any employee or executive share option plan of the Company (provided that not more than 11% of the Fully Diluted issued capital of the Company is issued pursuant to any employee or executive share option plan);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any buyback, redemption, reduction or cancellation of CDIs or share capital;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any decision that will, or is likely to cause a Material Adverse Effect on the Company or its Business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 **Holding and trading CDIs** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) GEM acknowledges and agrees that during the term of this agreement it must not hold more than 19.9% of all issued CDIs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) GEM agrees that it will not sell CDIs which it does not own or has no right to subscribe for pursuant to an existing Capital Call Notice from time to time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) GEM must not directly or indirectly without the prior consent of the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) effect or agree to effect any short sale of the CDIs, whether against the box, establish any 'put equivalent position' with respect to the CDIs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) borrow or pre-borrow any CDIs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) grant any other right (including without limitation, any put or call option) with respect to the CDIs; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) do any of the foregoing with respect to any security that includes, relates to, or derives any significant part of its value from the Company's CDIs or otherwise seek to hedge its position in the Company's CDIs.

The Company consents to GEM entering into a CDI Lending Deed, as contemplated by this agreement, and to GEM dealing with CDIs borrowed by it under, and pursuant to the terms, of a CDI Lending Deed.

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| | |
|:---|:---|
| **11** | **Fees and costs** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 **Placement Agreement Fee** 

The Company must pay GEMYB a Placement Agreement Fee of A$600,000 in accordance with clause 11.2 (Placement Agreement Fee).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 **Payment** 

The Company must pay the Placement Agreement Fee in the following amounts and at the following times:

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| | |
|:---|:---|
| **Payment date** | **Amount** |
| Each Closing Date of a Capital Call | 15% of the gross proceeds that the Company receives or is entitled to receive from any Capital Call Notice<br>(**Part Payment Amount**) |
| The date which is the earliest of:<br>(a) 12 months after the date of this agreement;<br>(b) the date that a Material Change in Ownership occurs; or<br>(c) any date on which an event in clause 11.5(d) occurs. | 100% of the unpaid or outstanding amount of the Placement Agreement Fee (**Unpaid Placement Agreement Fee**) |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 **Cash settlement** 

Unless the Company has complied with clause 11.4, the Company must pay all or part of the Placement Agreement Fee (including any Part Payment Amount or Unpaid Placement Agreement Fee) in cash and hereby directs, requests and authorises GEM or GEMYB from time to time to deduct any Part Payment Amount or Unpaid Placement Agreement Fee from and apply it against and in reduction of any amounts payable by GEM or GEMYB to the Company from time to time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4 **Payment in kind** 

If, on the due date for payment of all or part of the Placement Agreement Fee (including any Part Payment Amount or Unpaid Placement Agreement Fee), the Relevant Capital Call Conditions are satisfied, the Company may satisfy its payment obligations by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) on the due date for payment (**Issue Date**) - issuing, allotting and Electronically Delivering such number of CDIs to GEM calculated in accordance with the following formula (**Fee CDIs**):

Fee CDIs = Fee ÷ Issue Price

where:

Fee means either the Part Payment Amount or Unpaid Placement Agreement Fee (as the case may be) expressed in dollars, which is being paid in Fee CDIs.

Issue Price means the average closing bid price of CDIs during the Pricing Period.

Pricing Period means the period of 15 consecutive Trading Days ending on the day immediately preceding the due date for payment of the Unpaid Placement Agreement Fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) except where clause 11.4(d) applies, on the Business Day immediately after the Issue Date, lodging with the ASX or Corporate Regulator a Cleansing Document;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) obtaining a grant of quotation from the ASX for the Fee CDIs within five Business Days after the Issue Date, including complying with any reasonable condition required by the ASX as a condition of it granting quotation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) this clause 11.4(d) applies if, before the date on which the Fee CDIs are issued, the Company has lodged with the relevant Corporate Regulator a prospectus (or other disclosure document) which satisfies the requirements of section 708A(11)(b)(ii) of the Corporations Act (or equivalent provision of Applicable Corporate Laws). A prospectus (or other disclosure document) does not satisfy the requirements of section 708A(11)(b)(ii) (or equivalent provision of Applicable Corporate Laws) of the Corporations Act for so long as it is the subject to a Corporate Regulator intervention (including without limitation an ASIC stop order or interim stop order).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5 **Promissory Note** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall, on the date of this agreement, provide a Promissory Note as evidence of its obligation to pay the Placement Agreement Fee and at all times ensure that GEMYB has a Promissory Note in an amount that is equal to the Unpaid Placement Agreement Fee from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It is hereby acknowledged that if, on any date prior to the Payment Date (as that term is defined in the Promissory Note) the Company pays any portion of the Placement Agreement Fee (**Paid Amount**) to GEMYB the amount due to GEMYB under the Promissory Note shall be reduced by an amount equal to the Paid Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the circumstances in clause 11.5(b) arise, the Company shall issue a new Promissory Note to GEMYB for an amount equal to the Unpaid Placement Agreement Fee against surrender by GEMYB of its existing Promissory Note to the Company.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If, for any reason:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company fails to comply with its obligations to pay the Placement Agreement Fee or any portion thereof in accordance with any of the provisions of this clause 11; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Company or any CDI Lender has breached in any material respect any representation, warranty, covenant or agreement contained in this agreement and (if such breach is curable) such breach is not cured within five Business Days following receipt by the Company of notice of such breach or there has been any Material Adverse Effect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Company ceases to carry on business at any time before the Placement Agreement Fee is paid in full; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any steps are taken by any person to initiate any form of insolvency or administration proceedings in relation to the Company before the Placement Agreement Fee is paid in full; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Company ceases to be admitted to the official list of ASX; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) this agreement is terminated under clause 14.3(a),

any Unpaid Placement Agreement Fee at that time shall become immediately due and payable in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6 **Late payments** 

If any sum payable under this clause 11 is not paid on the due date of payment, interest shall accrue on such sum from and including the due date for payment to but excluding the date on which payment is made at the Westpac Business Finance Rate, compounded monthly.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.7 **General costs and expenses** 

The Company must pay the reasonable legal fees and expenses of GEM on a full indemnity basis incurred in relation to the preparation, and negotiation of this agreement up to a maximum of $40,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8 **Statutory charges and duties etc** 

The Company indemnifies GEM and GEMYB and agrees to keep them indemnified against any stamp or other duty, debits, goods and services tax, value added tax, impost, government or statutory charge or other taxes (including fines, penalties and interest provided they are not incurred as a consequence of the action or inaction of GEM or GEMYB or any of their respective officers, employees or agents) that may be payable in connection with the issue of the Capital Call CDIs in accordance with the terms of this agreement, or on the execution and delivery of this agreement, which are or may be required to be paid under any jurisdiction.

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| | |
|:---|:---|
| **12** | **Options** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 **Grant** 

In consideration of GEM entering into this agreement, the Company must on the date of this agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) grant and issue 5,700,000 Options to GEM or its nominee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) deliver to GEM or its nominee an Option Certificate evidencing the grant of Options; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) lodge an Appendix 3B with the ASX in respect of the grant of Options in accordance with the Listing Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 **Liquidated damages** 

If the Company does not comply with its obligations under clause 12.1, GEM may at its election, by notice in writing to the Company on or before the Option Expiry Date, require the Company to satisfy those obligations by paying to GEM or its nominee a cash amount by way of liquidated damages equal to the Black Scholes Value of the GEM Options as at a date elected by GEM in its absolute discretion, provided such date is on or before the Option Expiry Date (**Liquidated Damages Amount**).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 **Payment of liquidated damages** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If the Liquidated Damages Amount is payable, the Company must pay the Liquidated Damages Amount to GEM or its nominee on the first Business Day after GEM makes its election under clause 12.2 (**Due Date**).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to clause 12.3(c), the Company may pay the Liquidated Damages Amount:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in cash;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) in CDIs; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) through a combination of cash and CDIs,

in accordance with clauses 12.3(d) - 12.3(f) if clause 12.3(a) applies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Notwithstanding clause 12.3(b), the Company must pay the Liquidated Damages Amount to GEM or its nominee in cash in immediately available funds in accordance with clause 12.3(d) if the Unpaid Placement Agreement Fee has become immediately due and payable under clause 11.5(d).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company may pay all or part of the Liquidated Damages Amount in cash by electronically transferring to an account nominated by GEM on the Due Date a cash amount in immediately available funds in full for same day value as the Due Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company may pay all or part of the Liquidated Damages Amount in CDIs by issuing, allotting and Electronically Delivering to GEM or its nominee on the Due Date such a number of CDIs equal to that part of the Liquidated Damages Amount that the Company wishes to pay by CDIs divided by the lower of the average of the VWAPs for the 5 Trading Days prior to the Options Delivery Date and the average of the VWAPs for the 5 Trading Days prior to to the Due Date.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Interest accrues daily on any part of the Liquidated Damages Amount that is not paid on the Due Date from and including the Due Date up to but excluding the date on which payment is made in full at the Westpac Business Finance Rate, calculated on actual days elapsed and a year of 365 days. The Company must pay GEM or its nominee any such accrued interest on the last day of each calendar month in arrears. Any interest which is not paid in accordance with this clause 12.3(f) when due for payment is capitalised on the first day of each month and capitalised interest forms part of the principal amount outstanding, with effect from the day the interest is capitalised, and will itself bear interest at the rate and in the manner referred to in this this clause 12.3(f) from the date of capitalisation up to and including the date on which payment is made in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.4 **Acknowledgement** 

The Company acknowledges and agrees that notwithstanding anything else in this agreement, if the Company fails to comply with its obligations under clause 12.1, GEM is entitled to seek specific performance of the Company's obligations under clause 12.1 and is not under any obligation to make any election under clause 12.2. The provisions of clause 12.2 are in addition to any other remedy or rights which may be available to the Company at law, in equity or under this agreement.

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| | |
|:---|:---|
| **13** | **Goods and services tax** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 **Recovery of GST on supplies and adjustments under this agreement** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All consideration provided under this agreement is exclusive of GST, unless it is expressed to be GST-inclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Where a party (**Supplier**) makes a taxable supply to another party (Recipient) under or in connection with this agreement, the Recipient must pay to the Supplier an additional amount equal to the GST payable on the supply (unless the consideration for that taxable supply is expressed to include GST). The additional amount must be paid by the Recipient at the later of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the date when any consideration for the taxable supply is first paid or provided; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the date when the Supplier issues a tax invoice to the Recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If, under or in connection with this agreement, the Supplier has an adjustment for a supply under the GST law which varies the amount of GST payable by the Supplier, the Supplier will adjust the amount payable by the Recipient to take account of the varied GST amount. The Supplier must issue an adjustment note to the Recipient within 28 days of becoming aware of the adjustment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 **Other GST matters** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If a party is entitled to be reimbursed or indemnified under this agreement, the amount to be reimbursed or indemnified is reduced by the amount of GST for which there is an entitlement to claim an input tax credit on an acquisition associated with the reimbursement or indemnity. The reduction is to be made before any increase under clause 13.1(b). An entity is assumed to be entitled to a full input tax credit on an acquisition associated with the reimbursement or indemnity unless it demonstrates otherwise before the date the reimbursement or indemnity is made.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Any reference in this agreement to cost, expense, Liability or similar amount (**Expense**) is a reference to that Expense exclusive of GST (unless that Expense is expressed to be GST-inclusive).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This clause will not merge on completion and will survive the termination of this agreement by any party.

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| | |
|:---|:---|
| **14** | **Term and termination** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 **Term** 

Subject to clause 14.3(a) and 14.4, this agreement ends at the end of the Commitment Period unless otherwise agreed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 **Events of default** 

An Event of Default occurs if any of the following events occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Company makes default in duly performing or observing any of the undertakings or agreements on its part contained in this agreement and such default, if capable of remedy, remains un-remedied for a period of 14 days after notice from GEM requiring such default to be remedied;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any of the representations or warranties herein contained is found to have been false or misleading in any material respect when made or become false or misleading in any material respect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) any event occurs which has a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a Material Change in Ownership occurs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) a petition is lodged or an order is made or a resolution is passed for the winding up of the Company or any Subsidiary of the Company or any meeting is convened for the purposes of considering the said resolutions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) a receiver or receiver and manager of any material undertaking or property of the Company or any Subsidiary of the Company or any part thereof is appointed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) an administrator or controller is appointed to the Company or any Subsidiary of the Company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) the Company or any Subsidiary of the Company suspends payment of its debts or if the Company seeks or is required to seek the approval of its shareholders for a disposal of its main undertaking or a major asset under chapter 11 of the Listing Rules;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Company or any Subsidiary being or becoming unable to pay its debts when they are due or being unable to pay its debts within the meaning of the Corporations Act;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) a Corporate Regulator, ASX, any Governmental Authority or any person appointed under legislation exercises formal powers to conduct an investigation into matters concerning all or any part of the affairs of the Company or any Subsidiary of the Company (other than as part of an industry or sector or in the ordinary course of the authority's activities);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) a compromise or arrangement is proposed between the Company or any Subsidiary of the Company and its creditors or any class of them;

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) any event or circumstance analogous to the events in clause 14.2(e) to 14.2(k) (inclusive) under any applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) any Authorisation which is:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) necessary for the execution, delivery or performance by the Company or any Subsidiary of the Company, or the validity or enforceability, of any transaction contemplated under this agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) material to the conduct by the Company or any Subsidiary of the Company of its business,

is not obtained or maintained on terms reasonably acceptable to GEM or is revoked; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) all or a material part of the assets of the Company or any Subsidiary of the Company are compulsorily acquired by a Governmental Authority or a Governmental Authority orders the sale or divestiture of those assets or a Governmental Authority takes a step for the purpose of doing so or proposes to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3 **Consequences of an Event of Default** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If an Event of Default occurs, at any time thereafter, GEM may by giving written notice to the Company cancel the Capital Commitment and terminate this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If GEM terminates this agreement under clause 14.3(a), the following amounts become immediately payable by the Company:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Unpaid Placement Agreement Fee; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any other amounts payable by the Company under this agreement which are unpaid as at the date of termination including the Liquidated Damages Amount in cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4 **Effect of termination** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On termination of this agreement for any reason, subject to clause 14.4(b) all future obligations of the Company and GEM to each other end.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding clause 14.4(a):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) all provisions which by their nature survive the termination of this agreement, including clauses 11.1, 11.2, 11.5(d), 12.1 - 12.4 and 14.3(b), remain in full force and effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any other agreement between the Company, GEM or GEMYB, and any other third party remains in full force and effect according to the tenure of that agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) all accrued and outstanding obligations of the parties as at the date of termination remain despite termination;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if this agreement is terminated by GEM for an Event of Default before a Closing Date, GEM has no obligation to subscribe for CDIs. If this agreement is terminated for any other reason, any outstanding obligation of GEM to subscribe for CDIs arising under a valid Capital Call Notice survives and continues after termination; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) if this agreement is terminated at any time, any obligation the Company may have to issue CDIs to GEM or its nominee or to apply for or to obtain the grant of quotation of those CDIs in accordance with this agreement and for which a Capital Call Notice has been provided survives and continues after termination, but only to the extent that GEM has paid the Purchase Price for the CDIs.

---

| | |
|:---|:---|
| **15** | **Conflict with Constituent Documents** |

---

If there is any conflict between any provision of this agreement and the Constituent Documents as those provisions affect legal relations between the parties, the provisions of this agreement prevail.

---

| | |
|:---|:---|
| **16** | **Notices** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1 **Service of notices** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) A party giving or serving notice or notifying under this agreement must do so in writing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) directed to the recipient's address specified in this clause, as varied by any notice; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) hand delivered or sent by prepaid post, facsimile or emailed to that address listed below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The parties' addresses and facsimile numbers are:

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| | | |
|:---|:---|:---|
|  | **GEM Global Yield LLC SCS** | **GEMYB** |
| Attention: | Mr. Chris Brown | Mr. Chris Brown |
| Address: | 412F, Route d'Esch, L-2086<br> Luxembourg | CUB Financial Centre, GF5,<br> Lyford Cay, Nassau, Bahamas |
| Facsimile | (1) 212 265 4035 | (1) 212 265 4035 |
| Email |  |  |
| **The Company** |  |  |
| Attention: | Mr. Steve Wedan |  |
| Address:<br> Email address: | 400 Gateway Boulevard, Burnsville, 55337-2559, United States | 400 Gateway Boulevard, Burnsville, 55337-2559, United States |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2 **Receipt** 

A notice given in accordance with this clause is taken to be received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) if hand delivered, on delivery;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) if send by prepaid post, fifteen Business Days after the date of posting;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) if sent by facsimile, when the sender's facsimile system generates a message confirming successful transmission of the total number of pages of the notice unless, within one Business Day after the transmission, the recipient informs the sender that it has not received the entire notice; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If it is transmitted by email, on the day of transmission, provided that the sender does not receive an automated notice generated by the sender's or the recipient's email server that the email was not delivered.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3 **Execution** 

A notice given in accordance with this clause is sufficiently signed for or on behalf of a party if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) in the case of a company, it is signed by a director, secretary or other officer of the company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) in the case of an individual, it is signed by that party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4 **Other modes of service permitted** 

The provisions of this clause are in addition to any other mode of service permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5 **Interpretation** 

In this clause, notice includes a demand, request, consent, approval, offer and any other instrument or communication made, required or authorised to be given under this agreement.

---

| | |
|:---|:---|
| **17** | **General** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1 **Approvals and consent** 

Except when the contrary is stated in this agreement, GEM may give or withhold any approval or consent to be given under this agreement in its absolute discretion and subject to those conditions determined by it. GEM is not obliged to give its reasons for giving or withholding any approval or consent or for giving any approval or consent subject to conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2 **Assignment** 

The Company must not assign or transfer any of its rights under this agreement to any person who is not an Affiliate of the Company without the prior written consent of GEM, such consent not to be unreasonably withheld. GEM may assign or transfer it rights under this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.3 **Entire agreement** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This agreement contains everything the parties have agreed on in relation to the matters those documents deal with. No party can rely on an earlier document or anything said or done by another party, or by a director, officer, agent or employee of that party, before this agreement was executed, save as permitted by law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This agreement prevails in the event of any inconsistency between this agreement and a term sheet between GEMYB and the Company dated 10 May 2023.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.4 **Execution of separate documents** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This agreement is properly executed if each party executes either this agreement or an identical document. In the latter case, this agreement takes effect when the separately executed documents are exchanged between the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything else in this agreement a party can enter into this agreement by signing a facsimile copy of it and sending the signed page by facsimile to the other party or its solicitor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This agreement is deemed to have been entered into by all parties at the time the last of the parties has entered into it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.5 **Further acts** 

Each party must promptly execute all documents and do all things that another party from time to time reasonably requests to effect, perfect or complete this agreement and all transactions incidental to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.6 **Acknowledgment by the Company** 

The Company hereby acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it has read and understood fully the content of this agreement, including, but not limited to, the pricing mechanisms, the number of Capital Call CDIs to be subscribed for at the end of each Evaluation Period, the payment of the Placement Agreement Fee and, the issue of Options, and that it is entering into this agreement on the basis of its own independent assessment of the risks and liabilities undertaken hereunder, without any representation having been made by GEM or GEMYB or any of their Affiliates as to the effect, operation or results of this agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) it has been advised by its own legal and financial advisers in relation to its assessment of the risks and liabilities undertaken hereunder and that neither GEM nor GEMYB nor any of their Affiliates has provided investment advice to the Company in connection with the matters agreed in this agreement or has solicited or induced the Company to enter into this agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.7 **Stamp duty** 

The Company must promptly pay all stamp duty payable in connection with this agreement and any document incidental to it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.8 **Goods and Services Tax** 

A party must pay GST on a taxable supply made to it under this agreement, in addition to any consideration (excluding GST) that is payable for that taxable supply. The party making the taxable supply must provide a valid tax invoice to the other party at or before the time that the other party is required to pay the GST. Terms used in this clause have the meaning given to them in the A New Tax System (Goods and Services Tax) Act 1999.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.9 **Rights cumulative** 

Except when the contrary is stated in this agreement, the rights of a party under this agreement are cumulative and are in addition to the other rights of that party.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.10 **Severability** 

If a clause or part of a clause of this agreement can be read in a way that makes it illegal, unenforceable or invalid, but can also be read in a way that makes it legal, enforceable and valid, it must be read in the latter way. If any clause or part of a clause is illegal, unenforceable or invalid, that clause or part is to be treated as removed from this agreement, but the rest of this agreement is not affected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.11 **Variation** 

This agreement may only be varied by the written agreement of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.12 **Waiver** 

The fact that a party fails to do, or delays in doing, something the party is entitled to do under this agreement, does not amount to a waiver of any obligation of, or breach of obligation by, another party. A waiver by a party is only effective if it is in writing. A written waiver by a party is only effective in relation to the particular obligation or breach in respect of which it is given. It is not to be taken as an implied waiver of any other obligation or breach or as an implied waiver of that obligation or breach in relation to any other occasion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.13 **Set off** 

GEM may at any time deduct from any money payable by GEM or GEMYB to the Company and apply it by way of set-off and reduction of any money payable by the Company to GEM or GEMYB.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.14 **Governing law and jurisdiction** 

This agreement is governed by the law of Queensland, Australia. The parties submit to the non-exclusive jurisdiction of its courts and courts of appeal from them. The parties will not object to the exercise of jurisdiction by those courts on any basis.

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**Schedule 1** 

**Capital Call Notice**

------

**Schedule 2**

**Form of Resolution of Directors (clause 3.2(b))**

------

**Schedule 3** 

**CDI Lending Deed**

------

**Schedule 4**

**Form of closing statement (clause 5.2(a)(i)(A))**

------

**Schedule 5**

**Option terms and conditions**

------

**Schedule 6**

**Form of Promissory Note**

------

**Execution**

Executed an Agreement

**Executed by GEM Global Yield LLC SCS** in accordance with the laws of its place of incorporation and its constituent documents by<br>

---

| | |
|:---|:---|
| */s/ Mei-Ling Hom* | */s/ Christopher F. Brown* |
| Signature of witness | Signature of authorised person |

---

---

| | |
|:---|:---|
| Mei-Ling Hom | Christopher F. Brown |
| Name of witness | Name of authorised person |
| BLOCK LETTERS | BLOCK LETTERS |

---

**Executed** by **GEM Yield Bahamas Limited** in accordance with the laws of its place of incorporation and its constituent documents by<br>

---

| | |
|:---|:---|
| */s/ Mei-Ling Hom* | */s/ Christopher F. Brown* |
| Signature of witness | Signature of authorised person |

---

---

| | |
|:---|:---|
| Mei-Ling Hom | Christopher F. Brown |
| Name of witness | Name of authorised person |
| BLOCK LETTERS | BLOCK LETTERS |

---

**Executed** by **lmricor Medical Systems Inc** ARBN 633 106 019 in accordance with its constituent documents and the laws of its country of incorporation<br>

---

| | | |
|:---|:---|:---|
| */s/ Steve Wedan* | 1 July 2023 |  |
| Director | Director | \*Director/\*Company Secretary |

---

STEVE WEDAN <br> Name of Director Name of \*Director/\*Company Secretary <br> BLOCK LETTERS BLOCK LETTERS

## Exhibit 10.4

**Exhibit 10.4**

**[PORTIONS HEREIN IDENTIFIED BY [\*\*\*] HAVE BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE THE EXCLUDED INFORMATION IS BOTH (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED.]**

**LEASE AGREEMENT**

**FOR**

**GATEWAY BUSINESS PARK**

**WITH**

**IMRICOR MEDICAL SYSTEMS, INC.**

------

**LEASE AGREEMENT**<br> **GATEWAY BUSINESS PARK**<br> **TABLE OF CONTENTS**

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| | |
|:---|:---|
| Article 1  |  |
| PREMISES AND TERM | 1 |
| Article 2 |  |
| LEASEHOLD IMPROVEMENTS | 2 |
| Article 3 |  |
| RENT AND SECURITY DEPOSIT | 3 |
| Article 4 |  |
| COMMON AREAS AND OPERATING EXPENSES | 4 |
| Article 5 |  |
| TAXES | 7 |
| Article 6 |  |
| REPAIRS AND MAINTENANCE | 7 |
| Article 7 |  |
| UTILITIES | 8 |
| Article 8 |  |
| USE | 9 |
| Article 9 |  |
| ALTERATIONS | 10 |
| Article 10 |  |
| SIGNS | 11 |
| Article 11 |  |
| LIENS AND ENCUMBRANCES | 11 |
| Article 12 |  |
| INDEMNITY | 12 |
| Article 13 |  |
| INSURANCE | 13 |
| Article 14 |  |
| FIRE OR OTHER CASUALTY | 14 |
| Article 15 |  |
| EMINENT DOMAIN | 14 |

---

-i-

------

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| | |
|:---|:---|
| Article 16 |  |
| ASSIGNMENT AND SUBLETTING | 15 |
| Article 17 |  |
| ACCESS TO PREMISES | 16 |
| Article 18 |  |
| REMEDIES | 16 |
| Article 19 |  |
| SURRENDER OF POSSESSION | 18 |
| Article 20 |  |
| SUBORDINATION | 19 |
| Article 21 |  |
| NOTICES | 19 |
| Article 22 |  |
| ESTOPPEL CERTIFICATE | 20 |
| Article 23 |  |
| QUIET ENJOYMENT | 20 |
| Article 24 |  |
| SUBSTITUTION OF LEASED PREMISES | 20 |
| Article 25 |  |
| GENERAL | 20 |
| SIGNATURES | 23 |

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EXHIBIT A Complex Site Plan

EXHIBIT B Complex Legal Description

EXHIBIT C Leasehold Improvements

EXHIBIT C-1 Plans & Specifications

EXHIBIT D Additional Provisions

EXHIBIT E Sign Criteria

EXHIBIT F Rules and Regulations

-ii-

------

**GATEWAY BUSINESS PARK LEASE AGREEMENT**

THIS LEASE, made this 15th day of May 2007, by and between Kraus-Anderson®, Incorporated, a Minnesota corporation (the "Landlord") having an address at 4210 West Old Shakopee Road, Bloomington, Minnesota 55437, and Imricor Medical Systems, Inc., a Delaware corporation (the "Tenant"), having an address at 14547 Alabama Avenue South, Savage, Minnesota 55378.

**ARTICLE 1**<br> **PREMISES AND TERM**

**Section 1.** Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, that certain premises known and designated as Bay Number 301-303 shown outlined in black on <u>Exhibit A</u> attached hereto and made a part hereof (the "Leased Premises") in that certain building located at 400 Gateway Boulevard, Burnsville, Minnesota 55337 ("Building") situated on the land legally described in <u>Exhibit B</u> attached hereto and made a part hereof (the "Land"), said leasing being upon all of the terms, covenants and conditions herein contained. The term "Complex" as used herein, means the Land, together with all of the buildings located on the Land (the "Buildings"), and Common Areas (as hereafter defined) and other improvements located thereon.

The Leased Premises are more particularly described as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Approximately 7,534 net rentable square feet of office space;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Approximately 2,729 net rentable square feet of service space;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Approximately 10,263 total net rentable square feet, which square footage total shall be used to compute Tenant's pro rata share of the operating expenses, shared utilities and taxes as set forth more fully hereinafter. At such time as the actual square footage in the Leased Premises is known, after substantial completion of Landlord's Work and measurement of the Leased Premises according to BOMA standards, the figures set forth above and Tenant's pro rata share shall be adjusted to reflect the same.

For purposes of the Lease, "Tenant's Proportionate Share" shall mean the proportion that the total net rentable square feet of the Leased Premises bears to the total net rentable square feet of all of the Buildings in the Complex. Based on the square footage set forth above, Tenant's Proportionate Share is six percent (6%).

**Section 2.** To Have And To Hold the Leased Premises unto Tenant for a term of seven (7) years and seventeen (17) days commencing on the 15th day of July, 2007, (the "Commencement Date"), and ending on the 31st day of July, 2014, unless sooner terminated as provided in this Lease (the "Lease Term").

------

**Section 3.** If the Leased Premises are not ready for occupancy by Tenant, or if Landlord, for any reason, is unable to deliver possession of the Leased Premises to Tenant with Landlord's Work substantially complete by the Commencement Date, Landlord shall not be liable nor responsible for any claims, damages or liabilities in connection therewith or by reason thereof and this Lease shall remain in full force and effect. Tenant shall not be liable for rent until Landlord delivers possession of the Leased Premises to Tenant provided, however, the Lease Term shall not be extended by the delay unless otherwise specified by written notice from Landlord to Tenant. Subject to delays due to any of the causes described in Article 2, Section 1 of this Lease, in the event Landlord fails to deliver possession of the Leased Premises to Tenant with Landlord's Work substantially complete on or before August 15, 2007, then Tenant shall have the right to terminate this Lease by providing Landlord with five (5) days' written notice thereof and this Lease shall effectively terminate at the end of said five (5) day period unless Landlord substantially completes Landlord's Work and delivers possession of the Leased Premises to Tenant before the end of said five (5) day period. If Tenant has not given written notice of its election to terminate this Lease before Landlord substantially completes Landlord's Work, Tenant's right of termination under this Section 3 shall thereafter be null and void.

**ARTICLE 2**<br> **LEASEHOLD IMPROVEMENTS**

**Section 1.** Landlord shall be responsible for constructing and installing the leasehold improvements to the Leased Premises that are described in Exhibit C, attached hereto and made a part hereof ("Landlord's Work"), in accordance with the plans and specifications (the "Plans") attached hereto as <u>Exhibit C-1</u>. Landlord shall substantially complete Landlord's Work on or before the Commencement Date, provided that if construction is delayed because of changes, deletions or additions in construction requested by Tenant, strikes, lockouts, casualties, acts of God, war, equipment, material or labor shortages, governmental regulations or control, adverse weather conditions or other causes beyond the control of Landlord, the construction time period shall be extended for the amount of time Landlord is so delayed. As used herein, "Substantial Completion" shall mean that Landlord's Work is completed except for so-called "punch list" items, none of which materially interfere with Tenant's use and occupancy of the Leased Premises for the conduct of its business.

**Section 2.** Landlord shall notify Tenant as soon as Landlord's Work is Substantially Complete. If there is a dispute as to whether or not Landlord's Work is Substantially Complete, the dispute shall be resolved by the architect who prepared the Plans. Taking of possession by Tenant shall be conclusive evidence that Landlord's Work has been completed in accordance with the Plans, except for any "punch list" items agreed upon by Landlord and Tenant. If Landlord delivers possession of the Leased Premises to Tenant prior to the Commencement Date to enable Tenant to fit the Leased Premises to its use, such occupancy shall be subject to all the terms and conditions of this Lease, except payment of rent. During the last 30-day period that the Landlord's Work is being completed, Tenant and its contractors, employees and agents shall have access to the Leased Premises and the Building at reasonable times, for the purpose of preparing the Leased Premises for Tenant's occupancy. Tenant shall use all reasonable efforts not to disrupt those performing Landlord's Work. By taking possession, Tenant acknowledges that no representations as to the condition of the Leased Premises or promises to alter, remodel or improve the Leased Premises have been made by the Landlord except as set forth in Exhibit C or otherwise set forth in this Lease. Tenant further acknowledges that the Leased Premises, as constructed or to be constructed, satisfy all of Tenant's special suitability factors, if any.

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**Section 3.** Landlord shall pay the cost of Landlord's Work. Tenant shall pay Landlord the cost incurred by Landlord to construct any leasehold improvements not specifically listed as Landlord's Work which have been requested and agreed to in writing by Tenant, and the increased cost, if any, for all change orders pertaining to Landlord's Work which have been requested and agreed to in writing by Tenant. Tenant shall pay such costs to Landlord within thirty (30) days after Tenant's receipt of written notice from Landlord stating the amount due to Landlord.

**ARTICLE 3**<br> **RENT AND SECURITY DEPOSIT**

**Section 1.** Annual base rent ("Annual Base Rent") shall be payable by Tenant in advance in equal monthly installments ("Monthly Base Rent"), on or before the first day of each month during the Lease Term at the office of Landlord designated in the first paragraph of this Lease or at such other place designated by the Landlord, without prior notice or demand therefor and without any deduction or set-off whatsoever. Annual Base Rent shall be paid in the amounts shown on Exhibit D to this Lease. Monthly Base Rent for any partial month during the Lease Term shall equal 1/30 of the Monthly Base Rent for each day in such partial month and shall be payable on or before the first day of such partial month.

**Section 2.** If Tenant fails to pay any rent or other amounts payable under this Lease within ten (10) days after the date the same is due, Tenant shall also pay Landlord (i) interest on the unpaid amount at the rate of ten percent (10%) per annum or the highest rate permitted by law, whichever is less, from the date such amount was due until the date such amount is paid, and (ii) a [\*\*\*] service charge for each month or partial month such payment(s) are not paid within 10 days of written notice from Landlord.

**Section 3.** Tenant agrees to pay as additional rent ("Additional Rent"), Tenant's Proportionate Share of operating expenses pursuant to Article 4 hereof and of Taxes, Repairs and Maintenance and Utilities pursuant to Articles 5, 6 and 7 hereof, and such other amounts as are required to be paid by Tenant pursuant to this Lease.

**Section 4.** Tenant has deposited with Landlord the sum of [\*\*\*] as security for the faithful performance and observance by Tenant of the terms of this Lease. If Tenant defaults in the performance of any of the terms of this Lease beyond any applicable cure period, Landlord may apply the whole or any part of the security deposit to the payment of any Monthly Base Rent or Additional Rent or any other sum as to which Tenant is in default or for any sum which Landlord may expend by reason of Tenant's default, including but not limited to, any damages or deficiency in the reletting of the Leased Premises. If any portion of said security is so applied, Tenant shall, within ten (10) days after written demand therefor, deposit cash with Landlord in an amount sufficient to restore the security deposit to its original amount and Tenant's failure to do so shall be a default under this Lease. Landlord shall not be required to keep this security deposit separate from its general funds and may use such funds for any purpose. Tenant shall not be entitled to interest on such deposit. If Tenant fully and faithfully complies with all of the terms, provisions, covenants and conditions of this Lease, after the first Lease Year, [\*\*\*] of the security deposit shall be returned to Tenant, after the second Lease Year, another [\*\*\*] of the security deposit shall be returned to Tenant, and at the end of the Lease Term, the remaining balance of the security deposit shall be returned to Tenant within twenty (20) days after end of the Lease Term.

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**ARTICLE 4**<br> **COMMON AREAS AND OPERATING EXPENSES**

**Section 1.** The term "Common Areas" shall mean that portion of the Complex designated by Landlord from time to time for the common use of all tenants, including, but not limited to the driveways and parking areas. Landlord reserves the unrestricted right to (i) change the design or size of any of the Buildings, the driveways, parking areas, and identity and type of tenancies; (ii) add buildings and other structures to the Complex; (iii) contract for mutual easement rights with adjoining landowners who shall thereafter, along with their employees, customers and invitees, use the Common Areas in common with Tenant and all tenants of Landlord, and their employees, customers, and invitees to the extent of adjoining landowners' contract rights; (iv) use portions of the Commons Areas for uses which may be of interest to all or part of the general public; (v) close portions of the Common Areas from time to time for repairs, to prevent accruing of public rights therein and for any other legitimate purpose; provided only that the size of the Leased Premises, reasonable access to the Leased Premises and minimum parking facilities as required by this Lease or governmental authorities having jurisdiction shall not be substantially or materially impaired, subject to the provision of Article 14 hereof; and (vi) Tenant's obligations under the Lease shall not be materially increased or Tenant's rights materially decreased.

**Section 2.** Landlord hereby grants Tenant, its employees, customers, and invitees, the nonexclusive right to use the Common Areas (as designated from time to time) during the Lease Term, such use to be in common with Landlord and all tenants of Landlord, its and their employees, customers and invitees. Tenant shall not interfere with the rights of Landlord, other tenants, adjoining landowners, its and their employees, customers and invitees, to use any part of the Common Areas.

**Section 3.** Landlord agrees to manage, operate, maintain and repair the Common Areas. The manner in which such Common Areas shall be maintained and the expenditures therefor shall be at the sole reasonable discretion of Landlord, who shall have the right to adopt and promulgate reasonable nondiscriminatory rules and regulations, from time to time, including the right to designate parking areas for the use of employees of tenants of the Complex and to restrict such employees from parking areas designated exclusively for visitors.

**Section 4.** The term "Lease Year" shall mean that period from the Commencement Date to the next succeeding anniversary date of the Commencement Date and successive twelve (12) month periods thereafter. If the Commencement Date is on a date other than the first day of a month, then the first Lease Year shall include the period from the Commencement Date to the first day of the first calendar month after the Commencement Date. The last Lease Year shall be the period from the end of the preceding Lease Year to the date of the termination of this Lease.

**Section 5.** Tenant agrees to pay Tenant's Proportional Share of all expenditures incurred by Landlord in the ownership, operation, maintenance, repair and replacement of the Complex and the personal property, fixtures, machinery, equipment, systems and apparatus located in or used in connection with the Complex ("Operating Expenses"), including but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) costs and expenses of maintaining, repairing and replacing landscaping, plantings, shrubbery and planters;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) costs and expenses of operating, maintaining, repairing and replacing of paving, curbs, sidewalks, walkways, roadways, parking surfaces, drainage, machines and equipment and lighting facilities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) management fees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) utilities not charged directly to tenants as set forth in Article 7 hereof and if Tenant pays its utilities directly to Landlord or the utility provider, Tenant shall not be charged a pro rata share of the cost of utilities supplied to other tenant's premises;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) common garbage pick-up charges if arranged by Landlord pursuant to Article 8 hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) costs of insurance (including hazard, liability and rent insurance), including but not limited to any deductibles that are paid thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) security expenses;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) all Taxes as defined in Article 5;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) interior and exterior maintenance, repair and replacement expenses including maintenance of signs as set forth in Article 10 hereof, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) expenses related to maintenance, repair and replacement of the Common Areas;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) expenses of maintenance, repair and replacement of the Buildings, roofs and structural portions of the Buildings as set forth in Article 6 hereof, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) amortization of capital improvements (including interest expenses incurred or to be incurred by Landlord) made to reduce operating costs and amortization of major repairs (including interest expenses incurred or to be incurred by Landlord) made to extend the life of or otherwise repair and maintain the Buildings, or a component of any of the Buildings or the Common Areas, in accordance with generally accepted operational and maintenance procedures, including, but not limited to, installments of amortized Operating Expenses incurred by Landlord prior or subsequent to the date of this Lease that are payable during the Lease Term.

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The term "Operating Expenses" shall not include: (a) the cost of Landlord's home office expenses, or any personnel above the level of Complex manager or superintendent; (b) the cost of any "tenant allowances", alterations, leasing commissions, legal fees, advertising or promotional expenses, or other costs incurred in preparing space for occupancy or developing the Building; (c) amounts paid for professional services in connection with the leasing of space or in connection with relationships or disputes with tenants, former tenants, prospective tenants or other occupants of the Building; (d) debt amortization or financing or refinancing costs; (e) expenses for which Landlord is or will be reimbursed; (f) expenses in the nature of interest, fines and penalties; (g) rent, additional rent and other charges payable under any ground lease or any lease superior to this Lease; (h) any management or similar fee in excess of 5% of the total gross revenues of the Property; (i) other than the management fee payable to Kraus-Anderson Realty Company, any costs or other sums paid to any person or entity related to or affiliated with Landlord to the extent that same exceeds the reasonable and customary cost thereof; (j) professional fees incurred in connection with the preparation of financial statements, tax returns and other documents and information for Landlord or its mortgagees or other costs associated with the operation of the business of the entity which constitutes Landlord, as the same are distinguished from the costs of operation of the Building, such as but not limited to accounting and legal matters, costs of defending any lawsuits with any mortgagee, costs of selling, syndicating, financing, mortgaging, or hypothecating any of Landlord's interest in the Building or the land thereunder, costs of disputes between Landlord and its employees or Building management or other tenants; (k) any repairs or alterations made by Landlord to comply with laws, regulations, codes or ordinances existing as of the execution hereof; (l) depreciation; (m) costs of paintings, sculptures or other artwork; (n) expenses arising from the negligence of Landlord, its agents, employees or contractors; (o) bad debt or rent loss reserves; (p) charitable contributions; (q) overtime utility charges for utilities benefiting other tenants; (r) costs incurred in connection with the original construction of the Building or the repair of any defects in or inadequacy of the initial design or construction of the Building, or costs incurred in connection with any major addition to the Building, such as but not limited to adding or expanding floors, or (s) rental for the building management office, or any costs attributable to the operation or maintenance of the building management office.

The cost of any repairs or replacements which, under generally accepted accounting principles, would be capitalized, shall be amortized on a straight-line basis and taken as Operating Expenses over a period of not less than three (3) years, but only to the extent set forth in Section 5 (xii) above, otherwise capital expenses shall not be included in Operating Expenses.

Tenant shall pay with its Monthly Base Rent such amount as the Landlord reasonably estimates for the Tenant's Proportionate Share of Operating Expenses, which amount shall be deemed to be Additional Rent due under this Lease. As soon as the actual Operating Expenses can be verified, the Landlord shall notify Tenant of (i) the actual Operating Expenses for the preceding calendar year (ii) the additional amount due from Tenant for Tenant's Proportionate Share of the Operating Expenses during such period, if any, and (iii) any credit the Tenant is entitled to as a result of the payment of the estimated Operating Expenses.

Tenant shall pay the additional amount due Landlord, if any, on the due date for the next installment for Monthly Base Rent which is at least 20 days following such notice or within thirty (30) days after notice from Landlord if the Lease Term has expired. Any overpayment shall, in Landlord's sole discretion, either be applied to amounts due and payable by Tenant under this Lease, credited against the next payment due from Tenant, or paid to Tenant within 30 days if the Lease Term has expired.

**Section 6.** For the purpose of calculating Tenant's Proportionate Share for a partial calendar year, each day of the Tenant's occupancy during such partial calendar year shall be regarded as one three-hundred sixty-fifth of a full year's share, and the Tenant shall be considered as in "occupancy" during the full period of the Lease Term falling within such partial calendar year.

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**ARTICLE 5**<br> **TAXES**

**Section 1.** "Taxes" means all real estate taxes and installments of special assessments on the Complex that are due and payable during the Lease Term and all other taxes or other governmental impositions that are levied upon or assessed against any or all of the Buildings, the Complex or the Landlord and relating to the Lease Term, including but not limited to gross receipt taxes, taxes on rentals (not including federal or state income, inheritance, gift or estate taxes), taxes in lieu of real estate taxes or special assessments, or taxes arising by reason of the occupancy, use or possession of the Leased Premises. Landlord shall pay, in the first instance, all Taxes. Tenant shall reimburse Landlord for Tenant's Proportionate Share of such Taxes as part of the Operating Expenses pursuant to Article 4 of the Lease.

**ARTICLE 6**<br> **REPAIRS AND MAINTENANCE**

**Section 1.** Landlord shall keep the foundations, exterior walls (except plate glass or other special breakable materials used in structural portions), and roofs of all of the Buildings in good repair, and if necessary or required by proper governmental authority, make modifications or replacements thereof (subject to Tenant reimbursing the Landlord for Tenant's Proportionate Share of all such cost incurred by Landlord pursuant to Article 4 of this Lease).

**Section 2.** Tenant shall keep the Leased Premises in good, clean, safe and habitable condition, ordinary wear and tear excepted, in accordance with all applicable laws, ordinances, rules, requirements and regulations of all governmental authorities and agencies having jurisdiction over the Leased Premises with respect to Tenant's particular manner of use of the Leased Premises. Tenant shall, at its sole cost and expense, subject to the prior written consent of Landlord, as described in Article 25, Section 17 of this Lease, make all needed repairs and replacements, except for repairs and replacements required to be made by Landlord under the provisions of Section 1 of this Article. Without limiting the foregoing, it is understood that Tenant's responsibilities therein include the maintenance, repair and replacement of all window coverings, lighting, plumbing, and other electrical, mechanical and electromotive equipment which exclusively serve the Leased Premises, and fixtures and all utility repairs in ducts, conduits, pipes and wiring, and any sewer stoppage located in, under and above the Leased Premises, but not any lines, ducts, conduits, pipes and wiring prior to the point of entry to the Leased Premises. Tenant shall, at its own cost and expense, promptly replace with glass of the same quality, any cracked or broken glass including plate glass and any interior and exterior windows and doors in the Leased Premises, but not glass or other special breakable materials used in structural portions. If specifically required by Landlord, Tenant shall maintain a policy or policies of insurance in acceptable companies insuring Landlord and Tenant, as their interests may appear, against breakage of all such glass in the Leased Premises. If any repairs required to be made by Tenant under this Section 2 are not made within thirty (30) days after written notice is delivered to Tenant by Landlord, Landlord may, at its option, make such repairs without liability to Tenant for any loss or damage which may result to its stock or business by reason of such repairs; and Tenant shall pay to Landlord upon demand, the cost of such repairs pursuant to Article 18, Section 4 of this Lease.

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**Section 3.** Notwithstanding any provision of this Lease to the contrary, Tenant shall, at its own cost and expense, be responsible for performing maintenance and repairs to the heating, ventilating and air conditioning system (HVAC) exclusively serving the Leased Premises in order to keep and maintain the HVAC system in good condition and repair. This shall include, but not be limited to, quarterly maintenance. Quarterly maintenance for purposes of this paragraph shall mean: inspection, changing filters and belts, and adjustments or maintenance that would generally be covered by a mechanical maintenance service contract. Landlord shall be responsible for replacing the HVAC system if replacement becomes necessary during the Lease Term, or any HVAC repair which exceeds $500.00. Upon request of the Tenant, Landlord shall assign to Tenant any warranties given to Landlord for said HVAC system. If Tenant fails to perform its obligations under this Section 3, Landlord may, after 30 days notice to Tenant and opportunity to cure, at Landlord's option, enter upon the Leased Premises for the purpose of performing Tenant's obligations hereunder. Tenant shall pay to Landlord as Additional Rent, within five (5) days after demand therefore, all costs incurred by Landlord in performing Tenant's obligations. Landlord warrants and represents that the HVAC and all mechanical, electrical and plumbing systems in the Leased Premises shall be in good working order as of the Commencement Date. In addition, Landlord warrants and represents to its knowledge there are no hazardous substances existing in the Leased Premises on the Commencement Date. In the event hazardous substances are ever discovered in the Leased Premises and the same were present therein as of the date Landlord delivered possession thereof to Tenant, then Landlord shall immediately, at its sole cost, remove such hazardous substances from the Leased Premises and restore the Leased Premises, including Tenant's decor, to the condition existing therein immediately prior to such removal. For purposes of this Section, a material, product, substance or condition shall be considered hazardous if its presence in the Leased Premises is in violation of any applicable environmental statute, regulation or ordinance.

**ARTICLE 7**<br> **UTILITIES**

**Section 1.** Tenant shall pay, when due, all charges for heating, air conditioning, electricity, gas, water and sewer services furnished to the Leased Premises throughout the Lease Term. If any such utilities are not separately metered to Tenant, Landlord shall, in the first instance, pay for the same and Tenant shall reimburse Landlord for Tenant's share (reasonably estimated by Landlord) as part of Operating Expenses pursuant to Article 4 of this Lease.

**Section 2.** Landlord shall furnish electrical facilities to the Building and to the Leased Premises as specified in Exhibit C-1, to provide sufficient power for typewriters and other office machines of similar low electrical consumption, but not including facilities required for telecommunications, computer or data processing equipment, special lighting in excess of building standard, and any other item of electrical equipment which singly consumes more than .5 kilowatts per hour at rated capacity or requires a voltage other than one hundred twenty (120) volts single phase. Tenant agrees to pay for all special requirements for utilities such as gas, steam, water, electricity and other services to the Leased Premises and for all alterations or modifications required in connection therewith. If Tenant installs any electrical equipment that overloads the power lines to the Building in which the Leased Premises is located, Tenant shall, at its own expense, make whatever changes are necessary to avoid such overload and to comply with the requirements of insurance underwriters and insurance rating bureaus and governmental authorities having jurisdiction over the Leased Premises.

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**Section 3.** Landlord shall not be liable in damages or otherwise if any utility or other service to the Leased Premises shall be interrupted or impaired by fire, repairs, accident or by any causes beyond Landlord's reasonable control. Such interruption of service shall never be deemed an eviction or disturbance of Tenant's use and possession of the Leased Premises or any part thereof or relieve Tenant from performance of Tenant's obligations under this Lease. In the event of any interruption in the services required to be provided by Landlord hereunder that materially interferes with Tenant's use and enjoyment of the Leased Premises, Tenant shall have the right to abate Monthly Base and Additional Rent if said interruption continues for at least five (5) consecutive business days.

**ARTICLE 8**<br> **USE**

**Section 1.** The Leased Premises may be used only for office, warehouse, research and development and light manufacturing (subject always to the provisions of Section 2 of this Article 8) and for no other purposes. Tenant agrees to conduct its business at all times in good faith, and in a high grade and reputable manner. Tenant shall promptly comply with all present and future laws, ordinances, rules, requirements and regulations of all governmental authorities and agencies and insurance companies affecting Tenant's particular manner of use of the Leased Premises or Tenant's conduct of business therein. Tenant shall also comply with all reasonable rules and regulation that Landlord may now or in the future put into effect for the Complex and/or the Building, including the Rules and Regulations attached to this Lease as Exhibit F, if any. No part of the Leased Premises shall be used for any purpose which will interfere with the general safety, comfort and convenience of the Landlord and other tenants of the Complex. Tenant shall permit no waste nor damage to the Leased Premises. Tenant, at its expense, shall comply with any valid and applicable laws, rules, orders, ordinances, regulations and other requirements, present or future (collectively, "Applicable Law"), affecting the Leased Premises and with any reasonable requirements of the insurance companies insuring Landlord against damage, loss or liability for accidents in or connected with the Building to the extent that the same shall affect or be applicable to (i) Tenant's particular manner of use of the Leased Premises (as opposed to its mere use thereof and with respect to which the occupant of the demised Leased Premises has control in complying, such as compliance with laws relating to business conduct, workplace smoking, and maximum occupancy), (ii) alterations and improvements made by Tenant, or (iii) a breach by Tenant of its obligations under this Lease. Nothing herein contained, however, shall be deemed to impose any obligation upon Tenant to make any structural changes or repairs unless necessitated by reason of a particular use by Tenant of the Leased Premises. Landlord shall be responsible for complying with all Applicable Law affecting the design, construction and operation of the Building (including the Leased Premises to the extent Tenant is not required to comply therewith as provided for above) or relating to the performance by Landlord of any duties or obligations to be performed by it hereunder. All provisions of the Lease to the contrary notwithstanding, in no event shall Tenant have any obligation to comply, or pay for the compliance with, any Applicable Law requiring alterations, modifications, or repairs to any area of the Building located outside of or beyond the Leased Premises. Furthermore, Tenant shall have no obligation to comply with or pay for the compliance with any Applicable Law requiring alterations, modifications, or repairs to any conduits, pipes, or duct work which is located within the Leased Premises (such as within the plenum area) but which does not directly serve the Leased Premises, it being the intent of the parties that the cost of such modifications, alterations, and repairs shall be Landlord's responsibility. Landlord warrants and represents that, to Landlord's knowledge, the Building and the Leased Premises will be in compliance with all Applicable Law as of the date Landlord initially delivers the Leased Premises to Tenant.

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**Section 2.** Tenant shall not conduct any auction, fire, closing out or bankruptcy sales in or about the Leased Premises nor obstruct the Common Areas or use the same for business or display purposes without Landlord's prior written consent. Tenant shall not abuse the Buildings, other improvements, fixtures or personal property constituting the Complex (including, without limitation, walls, ceilings, partitions, floors and wood, stone and iron work), nor make or permit any noise or odor objectionable to the public, to other occupants of the Buildings or the Complex or to the Landlord to emit from the Leased Premises; nor create, maintain or permit a nuisance thereon; nor do any act tending to injure the reputation of the Complex; nor where loading and delivery facilities are provided, use or permit to be used entrances for delivery or pick-up of merchandise or supplies to or from the Leased Premises, or permit trucks or other delivery vehicles while being used for any such purposes to be parked at any place within the Complex except such facilities as are specifically provided for such purpose. Tenant shall keep the loading platform areas allowed for use by Tenant clean and free from rubbish and dirt at all times. Tenant shall, in accordance with rules and regulations established by Landlord from time to time, store all trash and garbage in an orderly fashion and will arrange for regular pick-up of same at the Tenant's expense, provided, however, Landlord shall have the option upon thirty (30) days prior written notice to Tenant to arrange for garbage pickup and charge the cost therefor as part of Operating Expenses.

**Section 3.** Tenant shall not place a load upon any floor of the Leased Premises which exceeds the load per square foot that such floor is designed to carry and that is allowed by law. All business machines and equipment and all other mechanical equipment installed and used by Tenant in the Leased Premises shall be properly shielded and be so placed, equipped, installed, and maintained by Tenant at Tenant's own cost and expense in settings of cork, rubber, or spring-type vibration-eliminators or in such other manner as Landlord may reasonably direct so as to be sufficient to eliminate the transmission of noise, vibration, electrical or other interference from the Leased Premises to any other area of the Building in which the Leased Premises is located. Tenant shall not use the roof of or the air rights above the Building.

**ARTICLE 9**<br> **ALTERATIONS**

**Section 1.** Tenant shall not make any alterations or additions to the Leased Premises or make any contract therefore without first procuring Landlord's written consent, as described in Article 25, Section 17 of this Lease. All work done in connection with any replacements or alterations shall be performed with new materials and strictly in accordance with the plans and specifications approved by Landlord. All alterations, additions, improvements and fixtures including, but not limited to, floor covering affixed to the floor or track lighting affixed to the ceiling including fixtures therefor, other than trade fixtures, manufacturing equipment, engineering equipment, or test equipment including but not limited to air compressors, water treatment systems, or other items used for engineering, testing or manufacturing Tenant's products, which may be made or installed by either of the parties to this Lease in the Leased Premises and that are attached to the floors, walls or ceilings shall, at the termination of this Lease, become the property of Landlord, and shall remain upon and be surrendered with the Leased Premises as a part thereof, without damage or injury. All fixtures installed by Tenant shall be new or used in good condition. Tenant shall not install any exterior light or plumbing fixtures, shades or awnings, or make any exterior decoration or painting, or build any fence, or make any changes to the exterior of the Building in which the Leased Premises is located, or any other Building in the Complex.

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**ARTICLE 10**<br> **SIGNS**

**Section 1.** Except to the extent permitted by Landlord's sign criteria contained in this Article and set forth in attached Exhibit E, Tenant shall not erect or install any exterior window or door signs, advertising media or window lettering or placards or other signs or install any interior window or door signs, advertising media or window or door lettering or placards or other signs which would be reasonably visible from the exterior of the Premises, without Landlord's prior written consent, not to be unreasonably withheld.

**Section 2.** Landlord may install, at Landlord's expense, one or more monument signs identifying the Complex. The maintenance of said monument signs shall be included in Operating Expenses pursuant to Article 4 of this Lease.

**Section 3.** Tenant may install Tenant's personal sign upon the exterior of the Building in accordance with the terms of this Section 3, provided that Tenant has obtained Landlord's prior written consent. Tenant shall design, procure, and install Tenant's sign at Tenant's sole cost and expense, and Tenant shall indemnify Landlord against all costs and liabilities incurred in connection therewith. Landlord shall maintain said sign and include such maintenance in Operating Expenses pursuant to Article 4 of this Lease. Tenant's sign shall conform to the standards established for the Complex by Landlord from time to time, and Landlord shall furnish Tenant, at Tenant's request, an example of signage acceptable to the Landlord. At the expiration of the Lease Term, whether by lapse of time or otherwise, Tenant shall remove Tenant's sign and restore the exterior of the Building in which the Leased Premises is located to substantially the same condition existing immediately prior to the installation of Tenant's sign, ordinary wear and tear excepted, all at Tenant's sole cost and expense.

**ARTICLE 11**<br> **LIENS AND ENCUMBRANCES**

**Section 1.** Tenant shall promptly pay all sums of money with respect to all labor, service, materials or equipment supplied or furnished to Tenant in, at or about the Leased Premises, or furnished to Tenant's agents, employees, contractors or subcontractors which may be secured by any mechanics lien, materialmen's lien, suppliers lien or other type of lien against the Leased Premises or any interest therein. If any such lien shall be filed, Tenant shall, within seven (7) days after receipt thereof, give notice to Landlord of such lien and Tenant shall, within thirty (30) days after receiving notice of the filing of the lien, bond against or discharge such lien. Failure of Tenant to bond against or discharge the lien shall constitute a default under this Lease and in addition to any other right or remedy of Landlord, Landlord may, but shall not be obligated to, discharge the same of record by paying the amount claimed to be due, and the amount so paid by Landlord and all costs and expenses incurred by Landlord therewith, including reasonable attorney's fees shall be due and payable by Tenant to Landlord on demand pursuant to Article 18, Section 4 of this Lease.

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**Section 2.** Nothing in this Lease shall be construed as a consent on the part of Landlord so as to subject Landlord's estate in the Leased Premises to any lien or liability under the lien laws of the State of Minnesota.

**ARTICLE 12**<br> **INDEMNITY**

**Section 1.** Tenant shall indemnify and hold Landlord, its partners, officers, employees and agents (the "Indemnified Parties") harmless from and against all third party claims, demands and actions, and all related damages, costs and expenses incurred by the Indemnified Parties as a result thereof, including reasonable attorneys' fees, for bodily injury, death and/or property damage arising from, related to, or connected with (i) Tenant's occupancy or use of the Leased Premises, (ii) Tenant's default in the performance of any of its obligations under this Lease, or (iii) the negligent acts or omissions of Tenant, its agents, contractors, employees, sublessees, concessionaires and licensees. Tenant's indemnification obligation must be insured under the Tenant's liability insurance policy required by this Lease. Tenant shall also have the duty to defend the Indemnified Parties from all such claims with counsel reasonably acceptable to the Indemnified Parties. Tenant's obligation under this Article with respect to claims arising prior to termination shall survive (i) any termination of this Lease, (ii) the expiration of the term of this Lease (or any renewal or extension thereof), and (iii) any termination of Tenant's right of possession of the Leased Premises.

The Indemnified Parties shall not be liable and Tenant waives all claims, except in the case of Landlord's negligence or willful misconduct for damage to persons or property sustained by Tenant or Tenant's agents, contractors, employees, sublessees, concessionaires and licensees resulting from (i) any accident in or about the Leased Premises, and (ii) any negligent act or omission of any other tenant. This shall apply especially, but not exclusively, to the flooding of the Leased Premises, and to damage caused by steam, excessive heat or cold, falling ceiling material, broken glass, sewage, gas, odors or noise, or the bursting or leaking of pipes or plumbing fixtures, except in the case of Landlord's negligence or willful misconduct. All property belonging to Tenant or any occupant of the Leased Premises shall be there at the risk of Tenant or such person only, and the Indemnified Parties shall not be liable for damage thereto or theft or misappropriation thereof, except in the case of Landlord's negligence or willful misconduct.

Landlord shall indemnify, hold harmless and defend Tenant, its agents, servants and employees from and against all claims, actions, losses, costs and expenses (including attorney's fees and litigation costs), judgments, settlement payments, and, whether or not reduced to final judgment, all liabilities, damages or fines paid, incurred or suffered by any third parties in connection with loss of life, personal injury and/or damage to property arising from, directly or indirectly, wholly or in part (i) any default by Landlord under the terms and conditions of this Lease, or (ii) any acts or omissions of Landlord or any contractor, agent, employee, invitee or licensee of Landlord in or about the Leased Premises, Building Common Areas or Complex.

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**ARTICLE 13**<br> **INSURANCE**

**Section 1.** Tenant shall not carry any stock of goods or do anything in or about the Leased Premises which shall in any way tend to increase insurance rates on the Leased Premises, the Building or the Complex. If Landlord shall consent to a use which causes an increase in insurance rates, Tenant agrees to pay as Additional Rent any increase in premiums for insurance resulting from the business carried on in the Leased Premises by Tenant.

**Section 2.** Tenant agrees to procure and maintain a policy or policies of liability insurance, at its own cost and expense, insuring Landlord and Tenant from all claims, demands or actions for injury, death or property damage sustained by one or more persons as the result of any one occurrence in an amount of not less than Two Million Dollars ($2,000,000) made by or on behalf of any person or persons, firm or corporation arising from, related to or connected with (i) Tenant's occupancy or use of the Leased Premises, or (ii) the negligent acts or omissions of Tenant, which insurance shall be primary coverage and shall not be contributory with other similar liability insurance carried by Landlord. Tenant shall carry like coverages against loss or damage by boiler or internal explosion by boilers, if there is a boiler in the Leased Premises.

**Section 3.** Tenant shall maintain at its own cost and expense, fire and extended coverage, vandalism, malicious mischief and special extended coverage insurance in an amount adequate to cover the cost of replacement of all leasehold improvements installed by Tenant, excluding the leasehold improvements described on Exhibit C, furnishings, decorations, fixtures and personal property in the Leased Premises in the event of a loss, in companies and in form acceptable to Landlord. The insurance shall insure the fully insurable value of all such property in the Leased Premises, whether the same have been paid for entirely or partially by Landlord.

**Section 4.** The insurance to be maintained by Tenant shall not be subject to cancellation except after at least ten (10) days prior written notice to Landlord, and the policy or policies, or a duly executed certificate or certificates for the same, together with satisfactory evidence of the payment of premiums due shall be deposited with Landlord on or before the Commencement Date and upon any renewal of said insurance not less than thirty (30) days prior to the expiration of the term of such coverage.

**Section 5.** If Tenant fails to comply with the requirements of this Article 13 within 10 days of notice from Landlord, Landlord may obtain such insurance and keep the same in effect and Tenant shall pay Landlord the premium cost thereof on demand pursuant to Article 18, Section 4 of this Lease.

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**ARTICLE 14**<br> **FIRE OR OTHER CASUALTY**

**Section 1.** If the Complex shall be partially or totally destroyed by any fire or other casualty so as to become partially or totally untenantable, the same shall be repaired by Landlord, unless Landlord shall elect not to rebuild, as provided in Section 2 of this Article 14. Whether or not Landlord elects to restore the Leased Premises and/or the Building in which the Leased Premises is located, Tenant's monthly installments of Base Rent shall abate during such period of time as the Leased Premises are untenantable in the proportion that the untenantable portion of the Leased Premises bears to the entire Leased Premises. Landlord's obligation to repair or rebuild pursuant to this Article shall be limited to the basic building, the Common Areas, and HVAC, electrical, plumbing and mechanical systems, and tenant improvements existing on the Commencement Date, including Landlord's Work. In no event in the case of any such destruction shall Landlord be required to repair or replace Tenant's stock in trade, leasehold improvements installed by Tenant after the Commencement Date, fixtures, furniture, furnishings and equipment. Tenant covenants to make such repairs and replacements. All applicable deductibles, shall be deemed Operating Expenses under Article 4, Section 5 of this Lease.

**Section 2.** If the Complex, including Common Areas, shall be destroyed or so damaged by fire or other casualty as to render more than fifty percent (50%) thereof untenantable, or if the unexpired Lease Term is two (2) years or less on the date of any destruction or damage, then Landlord may, if it so elects by notice in writing within sixty (60) days after such destruction or damage, terminate this Lease. The above shall apply whether or not any part of the Leased Premises is damaged or destroyed.

In the event of any fire or other casualty affecting all or any part of the Leased Premises, or any of the common areas of the Building adjacent to or leading to the Leased Premises, then within sixty (60) days after such fire or other casualty Landlord shall notify Tenant of the length of time required to complete the restoration thereof and (i) if restoration of the Leased Premises shall be reasonably estimated to require more than 120 days to complete from the date of Landlord's notice; or (ii) subject to delays due to causes beyond Landlord's reasonable control, the Leased Premises are not substantially restored within 180 days after the date of Landlord's notice, then, in either such instance Tenant shall have the right, exercisable by notice to Landlord given on or before the thirtieth (30th) day after the date of receipt by Tenant of the notice required under (i) above or after the expiration of the time period set forth in (ii) above, as the case may be, to terminate this Lease effective not less than thirty (30) days after the date of such Tenant's notice (except that if the circumstances set forth in (ii) above are applicable, and Landlord substantially completes such restoration before the effective date of such termination, such termination shall be deemed a nullity).

**ARTICLE 15**<br> **EMINENT DOMAIN**

**Section 1.** If the whole of the Leased Premises shall be taken under the power of Eminent Domain, then the Lease Term shall cease as of the day possession shall be taken by the public authority and Monthly Base Rent and Additional Rent shall be paid up to such date.

**Section 2.** If more than ten percent (10%) of the Land be so taken, the Landlord shall have the right to terminate this Lease, with the rent adjustments as provided in Section 1, by giving Tenant written notice of termination within sixty (60) days after the taking of possession by the public authority.

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**Section 3.** If any floor area of the Leased Premises or twenty-five percent (25%) or more of the parking area portions of the Common Area shall be so taken, then either Landlord or Tenant may terminate this Lease by giving notice in writing to the other party within thirty (30) days after the taking of possession by the public authority. If this Lease is not terminated, all of the terms herein provided shall continue in effect except that the Annual Base Rent and Additional Rent shall abate in the proportion that the taken portion of the Leased Premises bears to the entire Leased Premises and Landlord shall make all necessary repairs or alterations as provided in Article 14, Section 1 to the extent reasonably possible to restore the Building in which the Leased Premises is located to a complete architectural unit.

**Section 4.** All damages awarded for such taking under the power of Eminent Domain, whether for the whole or a part of the Leased Premises, the Buildings, the Land or the Complex shall be the property of Landlord, whether such damages shall be awarded as compensation for diminution in value of the leasehold or to the fee of the Leased Premises; provided, however, that Landlord shall not be entitled to any separate award made to Tenant for depreciation of and cost of removal of stock depreciation of tenant improvements and fixtures, as well as any relocation award for its tenancy.

**ARTICLE 16**<br> **ASSIGNMENT AND SUBLETTING**

**Section 1.** Tenant shall not assign, sell, mortgage, pledge, or in any manner transfer this Lease or any interest therein, nor sublet the Leased Premises or any part or parts thereof, nor permit occupancy by anyone without the prior written consent of Landlord. Such consent shall not be unreasonably withheld. Consent by Landlord to one or more assignments of this Lease or to one or more sublettings, sales, mortgages, pledges or other transfers of the Lease Premises shall not operate as a waiver of Landlord's rights under this Article. Tenant shall promptly pay to Landlord as Additional Rent under this Lease any rent or other payments pursuant to any sublease which exceeds the amounts payable under this Lease less Tenant's out of pocket costs in connection with the assignment or sublease and any other consideration paid or to be paid by reason of the assignment or sublease. No assignment or sublease shall release Tenant from any of its obligations under this Lease or be construed or taken as a waiver of any of Landlord's rights under this Lease. For the purposes hereof, if Tenant is a corporation or partnership or other entity, any change in the ownership or effective control of Tenant shall be deemed to be an assignment which shall require Landlord's consent. The acceptance of rent from someone other than Tenant shall not be deemed to be a waiver of any of the provisions of this Lease or consent to any assignment of this Lease or subletting of the Leased Premises. Notwithstanding anything contained herein to the contrary, Tenant shall have the right, without the consent of Landlord, to assign this Lease or sublet the Leased Premises or any portion thereof to any entity (a) controlling, controlled by or under common control with Tenant, (b) that is Tenant's successor through merger, reorganization, or consolidation, or (c) that acquires substantially all of the assets of Tenant.

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**ARTICLE 17**<br> **ACCESS TO PREMISES**

**Section 1.** Landlord shall have the right to enter the Leased Premises at all reasonable times, upon reasonable advance notice to Tenant (except in cases of emergency, when no advanced notice shall be required) and at Tenant's option, accompanied by a representative of Tenant, for the purpose of inspecting the same or of making repairs, additions or alterations thereto or to the Building in which the Leased Premises is located or for the purpose of exhibiting the same to prospective tenants, purchasers or others. Landlord agrees, that prior to entry into the areas of the Premises designated as the clean room and electrical lab, Landlord will give Tenant sufficient prior notice of the time and nature of the entry, to permit Tenant an opportunity to prepare the room and secure confidential and proprietary information. Except as otherwise set forth in the Lease, Landlord shall not be liable to Tenant in any manner for any expense, loss or damage by reason thereof, nor shall exercise of such right be deemed an eviction or disturbance of Tenant's right of possession. With respect to any provision of this Lease which entitles or requires Landlord to make improvements, alterations or repairs to either the Leased Premises, the Building or the common areas, or to enter the Leased Premises, Landlord agrees that such entry and/or work shall not (i) damage the appearance or reduce the floor area of the Leased Premises, (ii) affect Tenant's layout (including access to the Leased Premises), or (iii) materially interfere with Tenant's use and enjoyment of the Leased Premises. All such entry and/or work shall be performed by Landlord in such a way as to minimize disruption to Tenant's business, and any damage caused to the Leased Premises (including tenant's decor) shall be repaired by Landlord at its expense. In the event such entry and/or work results in a material interference with the operation of Tenant's business for a period in excess of five (5) consecutive business days, then Tenant's obligation to pay Fixed Rent shall be abated during the period of such interference in proportion to the area of the Leased Premises so affected by such material interference.

**ARTICLE 18**<br> **REMEDIES**

**Section 1.** If Tenant shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) fail to pay any installment of Annual Base Rent, Additional Rent or any other amounts payable under this Lease within five (5) days after written notice from Landlord that the same shall become due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) do any of the following or allow any of the following to occur: (i) if the Tenant shall file in any court a petition in bankruptcy or insolvency or for reorganization, or for arrangement or for the appointment of a receiver or trustee of all or a portion of the Tenant's property, or (ii) if an involuntary petition of any kind referred to in subdivision (i) of this Section shall be filed against the Tenant, and such petition shall not be vacated or withdrawn within thirty (30) days after the date of filing thereof, or (iii) if the Tenant shall make an assignment for the benefit of creditors, or (iv) if the Tenant shall be adjudicated a bankrupt; or (v) if a receiver shall be appointed for the property of the Tenant by order of a court of competent jurisdiction (except where such receiver shall be appointed in an involuntary proceeding, if he shall not be withdrawn within thirty (30) days from the date of appointment); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) fail to keep or perform any of the other terms, conditions or covenants of this Lease to be kept or performed by Tenant for more than thirty (30) days after notice of such failure shall have been given to Tenant; or plus such additional time as may be requested to cure a default which, despite diligent and reasonable efforts cannot by its very nature be cured within said 30 days; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) abandon the Leased Premises. Tenant shall have the right to cease operating its business in the Leased Premises and/or vacate the same without creating a default under this Lease, so long as Tenant continues to pay its rental and perform its other obligations under the Lease.

then Landlord, in addition to any other rights or remedies it may have, shall have the right to (i) terminate this Lease in which event the Lease Term shall expire and terminate with the same force and effect as though the date set forth in said notice were the date originally set forth herein and fixed for the expiration of the Lease Term; provided, however, that Tenant shall remain liable as hereinafter set forth; or (ii) re-enter the Leased Premises and dispossess Tenant and/or other occupants of the Leased Premises, remove all property from the Leased Premises and store the same in a public warehouse or elsewhere at the cost of and for the account of Tenant and hold the Leased Premises as hereinafter provided, without becoming liable for any loss or damage which may be occasioned thereby, Tenant agreeing that no such reentry or taking possession of the Leased Premises by Landlord shall be construed as an election on Landlord's part to terminate this Lease, such right however, being continuously reserved by Landlord.

**Section 2.** If Landlord elects to re-enter the Leased Premises, Landlord may, but shall not be obligated to, (i) make such alterations and repairs as necessary in order to relet the Leased Premises, and (ii) relet the Leased Premises or any part thereof for such term or terms (which may be for a term extending beyond the term of this Lease) and at such rental or rentals and upon such other terms and conditions as Landlord, in its sole discretion, may deem advisable. Upon each such reletting, all rentals received by the Landlord for such reletting shall be applied, first, to the payment of any indebtedness other than Monthly Base Rent and Additional Rent due hereunder from Tenant to Landlord; second, to the payment of any costs and expenses of such reletting, including brokerage fees and attorney's fees and the costs of such alterations and repairs; third, to the payment of Monthly Base Rent and Additional Rent due and unpaid hereunder; and the residue, if any, shall be held by Landlord and applied in payment of future Monthly Base Rent and Additional Rent as the same may become due and payable hereunder. If such rental received from such reletting during any month after the payment of the amounts set forth in the previous sentence is less than the amount of rent to be paid during that month by Tenant hereunder, Tenant shall pay any such deficiency to Landlord. Such deficiency shall be calculated and paid monthly. Notwithstanding any such reletting without termination, Landlord may at any time thereafter elect to terminate this Lease for such previous breach. No such re-entry or taking possession of the Leased Premises by Landlord shall be construed as an election on its part to terminate this Lease unless a written notice of such intention be given to Tenant or unless the termination thereof be decreed by a court of competent jurisdiction. Unless otherwise ordered, the issuance of a writ of recovery for the Leased Premises shall not be construed as a termination of the Lease.

**Section 3.** Should Landlord at any time terminate this Lease for any default by Tenant, in addition to any other remedies Landlord may have, Landlord may recover from Tenant all damages Landlord may incur by reason of such default, including the cost of recovering the Leased Premises, reasonable attorney's fees, and the worth at the time of such termination of the excess, if any, of the amount of rent and charges equivalent to Annual Base Rent and Additional Rent reserved in this Lease for the remainder of the Lease Term over the then reasonable rental value of the Leased Premises for the remainder of the Lease Term, all of which amounts shall be immediately due and payable from Tenant to Landlord.

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**Section 4.** If Tenant defaults in the performance of any of Tenant's obligations under this Lease, and Landlord elects or is compelled to pay any sum of money to cure said default, after notice Tenant shall immediately pay Landlord an amount equal to Landlord's costs in curing said default, with interest thereon at the rate of ten percent (10%) per annum, or the highest rate permitted by law, whichever is less, from the date of payment by Landlord.

**Section 5.** Neither termination of this Lease nor repossession of the Leased Premises pursuant to this Article 18, nor expiration of the term of this Lease (or any renewals or extensions thereof) shall relieve Tenant of its previously accrued liability for performance of its obligations under this Lease, which liability shall survive and be fully enforceable after any such termination, repossession or expiration.

**ARTICLE 19**<br> **SURRENDER OF POSSESSION**

**Section 1.** At the expiration of the Lease Term or sooner termination of this Lease, Tenant shall surrender the Leased Premises broom clean and in good condition and repair, reasonable wear and tear and loss by fire or casualty excepted. Tenant shall promptly surrender all keys for the Leased Premises to Landlord at the place then fixed for payment of Monthly Base Rent.

**Section 3.** At the expiration of the Lease Term or sooner termination of this Lease, Tenant shall remove Tenant's personal property and trade fixtures incident to Tenant's business ("Tenant's Property"). Tenant shall repair any damage to the Leased Premises which may result from removal of Tenant's Property and shall restore the Leased Premises to the same condition as prior to the installation of Tenant's Property, ordinary wear and tear and casualty excepted. If Tenant does not remove Tenant's Property from the Leased Premises, Landlord may, at its option, remove the same (and repair any damage occasioned thereby) and either dispose of Tenant's Property as Landlord deems appropriate or deliver the same to any other place of business of Tenant or warehouse the same, and Tenant shall pay the cost of such removal, repair, delivery and warehousing to Landlord on demand pursuant to Article 18, Section 4 of this Lease, or Landlord may treat Tenant's Property as having been conveyed to Landlord with this Lease as a bill of sale without further payment or credit by Landlord to Tenant.

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**Section 4.** At the expiration of the Lease Term or sooner termination of this Lease, if Landlord so requires by written notice at the time it gives its consent to Tenant's improvements, Tenant shall promptly remove the leasehold improvements included in the Plans, any change orders to the Plans, and any alterations, additions, improvements and fixtures constructed subsequent to the Commencement Date of this Lease and designated in Landlord's Notice, and repair any damage occasioned by such removals at Tenant's expense, and in default thereof, Landlord may effect such removals and repairs, and Tenant shall pay Landlord the cost thereof on demand pursuant to Article 18, Section 4 of this Lease. Tenant shall not be required to remove any portion of Landlord's Work at the end of the term.

**Section 5.** During the last Lease Year of the Lease Term, Landlord shall have the right to place and maintain a "For Rent" sign in or on the Leased Premises. During the last ninety (90) days of the Lease Term, if during or prior to that time Tenant vacates the Leased Premises, Landlord shall have the right, with Tenant's consent, to decorate, remodel, repair, alter or otherwise prepare the Leased Premised for new occupancy.

**ARTICLE 20**<br> **SUBORDINATION**

**Section 1.** Tenant agrees that this Lease shall be subordinate to any mortgages or trust deeds that are now or may hereafter be placed upon the Complex or any part of the Complex and to any and all advances to be made thereunder, and to the interest thereon, and all renewals, replacements and extensions thereof, so long as the mortgagee agrees Tenant's rights under the Lease will not be disturbed. Tenant further agrees that upon notification by Landlord to Tenant, this Lease shall be or become prior to any mortgages or trust deeds that are now or may hereafter be placed on the Complex or any part of the Complex. Tenant shall execute and deliver whatever commercially reasonable instruments may be required for the above purposes, and if Tenant fails to do so within ten (10) days after demand in writing, Tenant shall be in default of the Lease.

**Section 2.** Tenant shall, upon demand, in the event of the sale or assignment of Landlord's interest in the Building in which the Leased Premises is located or the Complex or in the event any proceedings are brought for the foreclosure of, or in the event of exercise of the power of sale under any mortgage, trust deed, or other financing instrument, made by the Landlord covering the Leased Premises, attorn in writing to the purchaser upon any such foreclosure or sale and recognize such purchaser as the Landlord under this Lease, so long as Tenant's rights under the Lease are not disturbed.

**ARTICLE 21**<br> **NOTICES**

**Section 1.** Whenever under this Lease provision is made for notice of any kind, such notice shall be in writing and shall be deemed sufficient to Tenant if actually delivered to Tenant or sent by registered or certified mail, return receipt requested, postage prepaid, to the last Post Office address of Tenant furnished to Landlord for such purpose, or to the Leased Premises; and to Landlord if actually delivered to Landlord or if sent by registered or certified mail, return receipt requested, postage prepaid, to the Landlord at the address furnished for such purpose, or to the place then fixed for the payment of rent. If the holder of record of any mortgage or ground lessor's interest covering the Leased Premises shall have given prior written notice to Tenant that it is the holder of said mortgage or lessor's interest and such notice includes the address at which notices to such mortgagee or ground lessor are to be sent, then Tenant agrees to give to such party or parties notice simultaneously with any notice given to Landlord to correct any default of Landlord as hereinabove provided and agrees that such party or parties shall have the right, within thirty (30) days after receipt of said notice, to correct or remedy such default before Tenant may take any action under this Lease by reason of such default.

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**ARTICLE 22**<br> **ESTOPPEL CERTIFICATE**

**Section 1.** Within ten (10) days after written notice from the Landlord, Tenant shall provide an estoppel certificate to Landlord and such other party as is directed by the Landlord certifying: (a) that this Lease is in full force and effect and that it has not been assigned, modified, supplemented or amended in any way (or identifying any assignment, modification, supplement or amendment); (b) the Commencement Date and date of expiration of the Lease Term; (c) that this Lease is in full force and effect and that there are no defenses or offsets thereto (or stating those claimed by Tenant); (d) the amount of Annual Base Rent or Additional Rent that has been paid in advance and the amount of security that has been deposited with the Landlord; (e) the date to which Annual Base Rent and Additional Rent have been paid under this Lease; and (f) such other information as is reasonably necessary to be provided Landlord. If the Tenant shall fail to provide the Estoppel Certificate within ten (10) days of the Landlord's notice, Tenant shall be in default of this Lease.

**ARTICLE 23**<br> **QUIET ENJOYMENT**

**Section 1.** Landlord covenants that it has full right and authority to enter into this Lease for the full Lease Term. Landlord further covenants that Tenant, upon performing the covenants and agreements of this Lease to be performed by said Tenant, will have, hold and enjoy quiet possession of the Leased Premises.

**ARTICLE 24**<br> **SUBSTITUTION OF LEASED PREMISES**

**Section 1.** Intentionally omitted.

**ARTICLE 25**<br> **GENERAL**

**Section 1.** Nothing contained in this Lease shall be deemed or construed by anyone as creating the relationship of principal and agent or of partnership or of joint venture between Landlord and Tenant.

**Section 2.** The various rights and remedies contained in this Lease shall not be considered as exclusive of any other right or remedy, but shall be construed as cumulative and shall be in addition to every other remedy now or hereafter existing at law, in equity, or by statute. No delay or omission of the right to exercise any power by either party shall impair any such right or power, or shall be construed as a waiver of any default or as acquiescence therein. One or more waivers of any covenant, term or condition of this Lease by either party shall not be construed by the other party as a waiver of a subsequent breach of the same covenant, term or condition. The consent or approval by either party to or of any at by the other party of a nature requiring consent or approval shall not be deemed to waive or render unnecessary consent to approval of any subsequent similar act. Landlord shall not be deemed to have waived any provision of this Lease until expressed in writing and signed by Landlord.

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**Section 3.** The headings of the several articles contained herein are for convenience only and do not define, limit or construe the contents of such articles.

**Section 4.** The covenants, agreements and obligations contained in this Lease, except as herein otherwise specifically provided, shall extend to, bind and inure to the benefit of Landlord and Tenant and their respective personal representatives, heirs, successors and assigns. Landlord, at any time and from time to time, may make an assignment of its interest in this Lease, and, in the event of such assignment and the assumption by the assignee of the covenants and agreements to be performed by Landlord herein, Landlord and its successors and assigns (other than the assignee of this Lease) shall be released from any and all liability hereunder accruing after the date of the assignment.

**Section 5.** Whenever a period of time is herein provided for either party to do or perform any act or thing, that party shall not be liable or responsible for any delays, and applicable periods for performance shall be extended accordingly, due to strikes, lockouts, riots, acts of God, shortages of labor or materials, national emergency, acts of a public enemy, governmental restrictions, laws or regulations or any other cause or causes, whether similar or dissimilar to these enumerated, beyond its reasonable control. The provisions of this Section 5 shall not operate to excuse Tenant from prompt payment of Monthly Base Rent, Additional Rent or other monetary payments required by the terms of this Lease.

**Section 6.** This Lease shall not be recorded by either party. A short form of lease suitable for recording in the office of the County Recorder or Registrar of Titles office shall be executed and delivered at the request of either party at the expense of the requesting party.

**Section 7.** No payment by Tenant or receipt by Landlord of a lesser amount than the amount then due under this Lease shall be deemed to be other than on account of the earliest portion thereof due, nor shall any endorsement or statement on any check or any letter accompanying any check or payment be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to recover the balance due or pursue any other remedy provided in this Lease.

**Section 8.** Each of the parties represents and warrants that there are no claims for brokerage commissions or finder's fees in connection with the execution of this Lease, except as listed on Exhibit D attached hereto, and each of the parties agrees to indemnify the other against, hold it harmless from, all liabilities arising from any such claim for which such party is responsible (including, without limitation, the cost of counsel fees in connection therewith) except as listed on Exhibit D attached hereto.

**Section 9.** Unenforceability of any provision contained in this Lease shall not affect or impair the validity of any other provision of this Lease.

**Section 10.** The laws of the State of Minnesota shall govern the validity, performance and enforcement of this Lease.

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**Section 11.** All of the exhibits set forth in the **Table of Contents** are hereby incorporated herein by reference and are construed to be part of this Lease.

**Section 12.** If two or more individuals, corporations, partnerships or other entities (or any combination of two or more thereof) shall sign this Lease as Tenant, the liability of each such individual, corporation, partnership or other entity to perform all obligations under this Lease shall be deemed to be joint and several. In like manner, if the Tenant named in this Lease shall be a partnership or other business association, the members of which are, by virtue of statute, or general law, subject to personal liability, then the liability of each such member shall be deemed to be joint and several.

**Section 13.** Tenant hereby covenants, warrants and represents that by executing this Lease and by the operation of the Leased Premises under this Lease, it is not violating or has not violated any restrictive covenant or agreement contained in any other lease or contract affecting the Tenant.

**Section 14.** Anything in this Lease to the contrary notwithstanding, Landlord and Tenant each hereby waives any and all rights of recovery, claim, action or cause-of-action, against the other, its agents (including partners, both general and limited), officers, directors, shareholders or employees, for any loss or damage that may occur to the Leased Premises, or any improvements thereto, or the Complex or any improvement thereto, or any property of such party therein, by reason of fire, other casualty, the elements or any other cause which could be insured against under the terms of standard fire and extended coverage insurance policies, regardless of cause or origin, including negligence of the other party hereto, its agents, officers or employees, and covenants that no insurer shall hold any right of subrogation against such other party.

**Section 15.** The submission of this document for examination and negotiation does not constitute an offer to lease, or a reservation of, or option for, the Leased Premises and this document shall become effective and binding only upon its execution and delivery hereof by Landlord and Tenant. All negotiations, considerations, representations and understandings between Landlord and Tenant are incorporated herein and may be modified or altered only by agreement in writing between Landlord and Tenant and no act or omission of any employee or agent of Landlord or of Landlord's broker, if any, shall alter, change or modify any of the provisions hereof.

**Section 16.** If the Landlord or any successors-in-interest shall be an individual, joint venture, tenancy in common, firm, or partnership, general or limited, there shall be no personal liability on such individual or on the members of such joint venture, tenancy in common, firm or partnership or on such joint venture, tenancy in common, firm, or partnership, in respect to any of the covenants or conditions of this lease, and in the event of any default or breach by Landlord with respect to any of the terms, covenants and conditions of this Lease to be observed, honored or performed by Landlord, Tenant shall look solely to the estate and property of Landlord in the Complex for the collection of any judgment (or any other judicial procedures requiring the payment of money by Landlord) and no other property or assets of Landlord shall be subject to levy, execution, or other procedures for satisfaction of Tenant's remedies.

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**Section 17.** Landlord's written consent is required before Tenant performs any replacements, alterations, additions or improvements to the Leased Premises (the "Tenant Alterations"). Tenant shall have the right, without Landlord's consent, to make non-structural alterations to the Leased Premises costing less than $5.00 per square foot provided such alterations do not effect or involve any building systems or the relocation of building fixtures. Tenant shall give Landlord not less than ten (10) days prior written notice of any such alterations and shall otherwise comply with the terms and provisions of this Lease. Tenant's request for Landlord's consent must include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) detailed plans and specifications for the Tenant Alterations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) copies of all proposed contracts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the names of all contractors and suppliers who will perform work or supply materials for the Tenant Alterations and, if requested by Landlord, satisfactory evidence that such contractors are union contractors;

If Landlord consents to the Tenant Alterations, Tenant shall be solely responsible for obtaining, at Tenant's cost, all permits required for the Tenant Alterations and will provide copies of such permits to Landlord before proceeding with the work. Tenant shall perform the Tenant Alterations in full compliance with the plans and specifications approved by Landlord and all applicable laws and codes and regulations. Upon completion of the Tenant Alterations, Tenant shall furnish Landlord with copies of any inspections, certificates of completion, and certificates of occupancy that may be issued or available that evidence completion of the Tenant Alterations in compliance with this Section. Landlord may inspect the Tenant Alterations during performance of the work and upon completion. Neither Landlord's approval of Tenant's plans and specifications nor Landlord's inspection of the work shall be deemed an acceptance or approval of any item that is in violation of any applicable law or code and shall not be a representation of compliance.

IN WITNESS WHEREOF, Landlord and Tenant have signed and sealed this Lease as of the day and year first above written.

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| | | | |
|:---|:---|:---|:---|
| **KRAUS-ANDERSON, INCORPORATED** | **KRAUS-ANDERSON, INCORPORATED** | **IMRICOR MEDICAL SYSTEMS, INC.** | **IMRICOR MEDICAL SYSTEMS, INC.** |
| By: | */s/ Philip F. Boelter* | By: | */s/ Steven R. Wedan* |
|  | Philip F. Boelter |  |  |
| Its: | Executive Vice President | Its: | President and CEO |
|  | **LANDLORD** |  | **TENAN**T |

---

------

STATE OF MINNESOTA) ) ss. <br> COUNTY OF HENNEPIN)

The foregoing was acknowledged before me this 15th day of May, 2007, by Philip F. Boelter, the Executive Vice President of Kraus-Anderson, Incorporated, a Minnesota corporation, on behalf of the corporation. **[LANDLORD]**

---

| |
|:---|
| */s/ Theresa Jensen* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notary Public |

---

STATE OF Minnesota) ) ss. <br> COUNTY OF Hennepin)

The foregoing was acknowledged before me this 14th day of May, 2007, by Steven Wedan, the President and CEO of Imricor Medical Systems, Inc., a Delaware corporation, on behalf of the corporation. **[TENANT]**

---

| |
|:---|
| */s/ Victoria J. Pease* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notary Public |

---

------

**<u>EXHIBIT A</u>**

**COMPLEX SITE PLAN**

TO BE ATTACHED TO AND BECOME A PART OF THAT CERTAIN LEASE AGREEMENT<br> COVERING SPACE IN THE <u>GATEWAY BUSINESS PARK</u>

------

**<u>EXHIBIT B</u>**

**COMPLEX LEGAL DESCRIPTION**

TO BE ATTACHED TO AND BECOME A PART OF THAT CERTAIN LEASE AGREEMENT<br> COVERING SPACE IN THE <u>GATEWAY BUSINESS PARK</u>

------

**<u>EXHIBIT C</u>**

**LEASEHOLD IMPROVEMENTS**

TO BE ATTACHED TO AND BECOME A PART OF THAT CERTAIN LEASE AGREEMENT<br> COVERING SPACE IN THE <u>GATEWAY BUSINESS PARK</u>

------

**<u>EXHIBIT C-1</u>**

**PLANS AND SPECIFICATIONS**

TO BE ATTACHED TO AND BECOME A PART OF THAT CERTAIN LEASE AGREEMENT<br> COVERING SPACE IN THE <u>GATEWAY BUSINESS PARK</u>

------

**<u>EXHIBIT D</u>**

**ADDITIONAL PROVISIONS**

TO BE ATTACHED TO AND BECOME A PART OF THAT CERTAIN LEASE AGREEMENT<br> COVERING SPACE IN THE <u>GATEWAY BUSINESS PARK</u>

------

**<u>EXHIBIT E</u>**

**SIGN CRITERIA**

TO BE ATTACHED TO AND BECOME A PART OF THAT CERTAIN LEASE AGREEMENT<br> COVERING SPACE IN THE <u>GATEWAY BUSINESS PARK</u>

------

**<u>EXHIBIT F</u>**

**RULES AND REGULATIONS**

## Exhibit 10.5

**Exhibit 10.5**

**<u>[PORTIONS HEREIN IDENTIFIED BY [\*\*\*] HAVE BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE THE EXCLUDED INFORMATION IS BOTH (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED.]</u>**

**<u>FIRST AMENDMENT TO LEASE AGREEMENT</u>**

THIS FIRST AMENDMENT TO LEASE AGREEMENT, is made and entered into this 23<sup>rd</sup> day of March, 2009 by and between Kraus-Anderson, Incorporated, a Minnesota corporation (hereinafter referred to as "Landlord") and lmricor Medical systems, Inc., a Delaware corporation (hereinafter referred to as "Tenant").

WITNESSETH THAT:

WHEREAS, Landlord is leasing to Tenant and Tenant is leasing from Landlord certain premises commonly known as 400 - 404 Gateway Boulevard, Burnsville, Minnesota and located in Suite 301 - 303 {the "Leased Premises") in the Gateway Business Park - Phase Ill (the "Building"), in the Gateway Business Park (the "Complex"), pursuant to written Lease Agreement dated May 15, 2007 (hereinafter referred to as the "Lease"); and

WHEREAS, Landlord has agreed to defer and postpone payment of a portion of Tenant's fixed monthly Base Rent payments in the aggregate sum of [\*\*\*] during the six (6) month period from February 1, 2009 through July 31, 2009, to be due and payable as specified below.

NOW THEREFORE, in consideration of mutual agreements contained herein, it is hereby agreed to amend the Lease as follows:

1.<u> </u> <u>ARTICLE 3, SECTION 1 - DEFERRED BASE RENT</u>:

Subject to the terms and conditions hereof, Tenant shall have the right to defer payment of a portion of Tenant's fixed monthly Base Rent payments due and payable under the Lease as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Tenant is currently obligated to pay to Landlord fixed <u>monthly</u> Base Rent in the amount of [\*\*\*] per month during each month of the six-month period from February, 2009 through July, 2009.

The months of February 2009, March 2009, April 2009, May 2009, June 2009 and July 2009 collectively are herein referred to as the "**Deferral Period**".

The fixed <u>monthly</u> Base Rent payments due and payable in and under the Lease during each of the months for the Deferral Period shall be reduced to [\*\*\*] per month and the remaining Base Rent amounts shall be deferred and paid to Landlord during the thirty-five (35) month period from February, 2010 through December, 2012 (the "**Repayment Period**"), in addition to the regularly-scheduled Base Rent payments currently established for the duration of the Repayment Period.

The total amount of Base Rent deferred during the Deferral Period shall not exceed an aggregate sum of [\*\*\*] ("**Deferred Rent**").

The Deferred Rent amount shall be deferred to be due and payable as spelled-out in Item B. below.

------

During the thirty-five (35) month period from February, 2010 through December, 2012 ("Repayment Period"), Tenant shall be required to pay to Landlord the Deferred Rent amount of [\*\*\*] in monthly payments, with no interest, in addition to Tenant's Base Rent and additional rents and charges as currently scheduled in the Lease during the Repayment Period; Therefore, the total monthly Base Rent payments during each month of the Deferral Period and the Repayment Period shall be adjusted as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| Deferral Period &<br> Repayment Period | Currently<br> Scheduled<br> Base Rent<br> Amount | Amount<br> Decreased or<br> Increased | Adjusted<br> Base Rent<br> Payment | Deferred<br> Rent:<br> [\*\*\*] |
| 02/01/09- 07/31/09 | [\*\*\*] /mo. | <u>minus</u> [\*\*\*] /mo. | [\*\*\*] /mo. | (6 mo.) ([\*\*\*]) |
| 08/01/09 - 01/31/10 | [\*\*\*] /mo. |  | [\*\*\*] /mo. |  |
| 02/01/10 - 07/31/10 | [\*\*\*] /mo. | <u>plus</u> [\*\*\*] /mo. | [\*\*\*] /mo. | (6 mo.) [\*\*\*] |
| 08/01/10 - 07/31/12 | [\*\*\*] /mo. | <u>plus</u> [\*\*\*] /mo. | [\*\*\*] /mo. | (24 mo.) [\*\*\*] |
| 08/01/12 - 11/30/12 | [\*\*\*] /mo. | <u>plus</u> [\*\*\*] /mo. | [\*\*\*] /mo. | (4 mo.) [\*\*\*] |
| 12/01/12 | [\*\*\*] /mo. | <u>plus</u> [\*\*\*] /mo. | [\*\*\*] /mo. | (1 mo.) [\*\*\*] |
| 01/01/13- 07/31/14 | [\*\*\*] /mo. |  | [\*\*\*] /mo. |  |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Tenant shall be required to pay for all of its additional rents, utilities, and all other costs and charges as provided for under the Lease, during the entire Lease term (including the Deferred Period and the Repayment Period), in addition to the fixed Minimum Rents, as adjusted in Item 1.B above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. If Tenant ceases operations at the Leased Premises, or otherwise defaults in performance of its obligations under this Lease prior to payment in full of all Deferred Rent, then all remaining unpaid Deferred Rent amounts, as provided for in this Amendment, shall be immediately due and payable. If this Lease is terminated, then all unpaid Deferred Rent shall be due and payable as a condition precedent to any such termination.

2.<u> </u> <u>ARTICLE 3, SECTION 2 & ARTICLE 18 - PAYMENT OF RENTS</u>:

Any payments of rents as currently scheduled in the Lease, or as hereby reduced, plus Deferred Rent payments, that are not received by the respective dues dates, shall be subject to late fees and interest charges in accordance with Section 2 of Article 3 and Article 18 of the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Except as herein specifically modified and amended, the Lease shall remain in full force and effect and unaltered hereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Except as herein specifically modified and amended, the Lease shall remain in full force and effect and unaltered hereby.

------

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment To Lease Agreement to be executed the day and year first above written.

---

| | | | |
|:---|:---|:---|:---|
| **KRAUS-ANDERSON, INCORPORATED** | **KRAUS-ANDERSON, INCORPORATED** | **IMRICOR MEDICAL SYSTEMS, INC.** | **IMRICOR MEDICAL SYSTEMS, INC.** |
| a Minnesota corporation | a Minnesota corporation | a Delaware corporation | a Delaware corporation |
| By: | <u>*/s/ Phillip F. Boelter*</u> | By: | <u>*/s/ Steve Wedan*</u> |
|  | Philip F. Boelter |  |  |
|  | Executive Vice President | Its: | CEO |
|  | **LANDLORD** |  | **TENANT** |

---

Imricor Medical Systems, Inc.<br> Lease Amendment<br> (Prepared March 11, 2009)<br> Reviewed by: RJ/RB/KV

## Exhibit 10.6

**Exhibit 10.6**

**<u>[PORTIONS HEREIN IDENTIFIED BY [\*\*\*] HAVE BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE THE EXCLUDED INFORMATION IS BOTH (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED.]</u>**

**<u>SECOND AMENDMENT TO LEASE AGREEMENT</u>**

THIS SECOND AMENDMENT TO LEASE AGREEMENT ("Second Amendment") is effective as of the 18<sup>th</sup> day of October, 2012 ("Effective Date") and is made by and between KRAUS-ANDERSON, INCORPORATED a Minnesota corporation ("Landlord") and IMRICOR MEDICAL SYSTEMS, INC., a Delaware corporation ("Tenant").

**<u>RECITALS</u>**

A. Landlord is currently leasing to Tenant and Tenant is leasing from Landlord certain premises designated as Suites 301-303 in the Gateway Business Park located at 400-404 Gateway Boulevard, Burnsville, Minnesota 55337 and shown crosshatched on <u>Exhibit A</u> to this Second Amendment (the "Existing Leased Premises"), pursuant to written lease agreement dated May 15, 2007, as amended by a First Amendment to Lease Agreement dated March 23, 2009 (collectively, the "Lease").

B. Landlord and Tenant desire to amend the Lease to extend the current Lease term and increase the size of the Existing Leased Premises in accordance herewith.

NOW THEREFORE, in consideration of mutual agreements contained herein and other good and valuable consideration paid, the receipt and sufficiency of which is hereby acknowledged, it is hereby agreed that the Lease shall be and hereby is amended as follows:

1. <u>Extended Term</u>: Landlord and Tenant agree that the term of the Lease is hereby extended for an additional five (5) years, commencing August 1, 2014 and continuing thereafter until July 31, 2019 (the "Extended Term").

2. <u>Lease of Expansion Premises</u>: Landlord shall continue to lease to Tenant and Tenant shall continue to lease from Landlord the Existing Leased Premises, in accordance with the terms of the Lease. Beginning on the "Expansion Date", as hereinafter defined and continuing through the last day of the Extended Term, Landlord hereby also leases to Tenant and Tenant hereby also leases from Landlord approximately two thousand three hundred eighty seven (2,387) square feet of leaseable floor space designated as Suite 305 located at 408 Gateway Boulevard, Burnsville, Minnesota 55337 and shown crosshatched on <u>Exhibit A</u> to this Second Amendment (the "Expansion Premises"). Except as otherwise specifically provided in this Second Amendment, Tenant's lease of the Expansion Premises shall be upon the same terms and conditions as set forth in the Lease, and the term "Leased Premises" shall be defined to mean the Existing Leased Premises together with the Expansion Premises, and the Leased Premises shall hereafter contain approximately 12,650 square feet of space.

------

3. <u>Expansion Premises Improvements</u>. Landlord, at its sole cost, shall construct the improvements to the Expansion Premises depicted in the preliminary space plans attached to this Second Amendment as <u>Exhibit B</u> ("Improvements"). Detailed drawings and specifications (the "Final Plans") shall be submitted by Landlord to Tenant as soon as possible after full execution of this Second Amendment. The Final Plans shall be subject to the approval of Landlord and Tenant, which approval shall not be unreasonably withheld, conditioned or delayed. If Landlord and Tenant do not mutually approve the Final Plans, in writing, within ten (10) business days after submission to Tenant, then Landlord may terminate this Second Amendment by giving ten (10) days' written notice to Tenant, and, upon such termination, neither Landlord nor Tenant shall have any further rights or obligations under this Second Amendment, however the Lease shall remain in full force and effect for the remainder of the term stated therein with respect to the Existing Leased Premises. A full set of the Final Plans shall be delivered to and held by each party for their respective records. Upon approval of the Final Plans and issuance of all required permits, Landlord shall construct the Improvements and use reasonable efforts to substantially complete the Improvements and deliver possession of the Expansion Premises to Tenant within a reasonable period of time thereafter. The actual date that Landlord delivers possession of the Expansion Premises to Tenant with the Improvements substantially completed is referred to herein as the "Expansion Date".

4. <u>Annual Base Rent</u>: From and after the Effective Date and continuing through the expiration date of the Extended Term, Tenant shall pay Landlord fixed annual Base Rent for the Leased Premises as follows:

---

| | | |
|:---|:---|:---|
| <u>Period</u> | <u>Annual</u> | <u>Monthly</u> |
| Effective Date - July 31, 2014 | [\*\*\*] | [\*\*\*] |
| August 1, 2014 - July 31, 2015 | [\*\*\*] | [\*\*\*] |
| August 1, 2015 - July 31, 2016 | [\*\*\*] | [\*\*\*] |
| August 1, 2016 - July 31, 2017 | [\*\*\*] | [\*\*\*] |
| August 1, 2017 - July 31, 2018 | [\*\*\*] | [\*\*\*] |
| August 1, 2018 - July 31, 2019 | [\*\*\*] | [\*\*\*] |

---

5. <u>Additional Rent</u>: From and after the Expansion Date, Tenant shall continue to pay additional rent as required by the Lease, provided, however, that Tenant's proportionate share of such additional rent (i.e., operating expenses, real estate taxes, insurance, utilities and all other charges, costs and expenses that are due and payable under the Lease) shall be based upon the total number of square feet in the Leased Premises being 12,650 square feet.

6. <u>Early Termination</u>: After the Expansion Date Tenant may, at its option, terminate this Lease by giving Landlord written notice stating that Tenant is electing to terminate the Lease effective on the last day of the sixth (6<sup>th</sup>) full calendar month after the date of Tenant's notice of termination ("Early Termination Date"). On the date that Tenant provides written notice of termination to Landlord, Tenant shall pay Landlord an amount equal to the unamortized portion of the total of (i) Landlord's cost of constructing the Improvements, and (ii) the leasing commissions incurred by Landlord to secure this Second Amendment (collectively, the "Transaction Cost") plus interest thereon at the annual rate of 8% from the date incurred by Landlord. The total Transaction Cost is estimated to be [\*\*\*]. For purposes of this Section, the actual Transaction Cost, plus interest, shall be amortized on a straight-line basis over a period commencing on the Expansion Date and ending on the last day of the Extended Term and the unamortized portion of the Transaction Cost, plus interest, shall be determined by reference to the period of time remaining in the Extended Term after the Early Termination Date. On the date that Tenant provides Landlord with the written notice of termination, through and including the Early Termination Date, Tenant shall not be in default under the terms of this Lease. If Tenant is in default or subsequently does default and such default is not cured within the time allowed by this Lease, Tenant's right of early termination described in this Section shall be null and void and this Lease shall remain in full force and effect throughout the Extended Term. If this Lease is terminated in accordance with this Section, neither party hereto shall have any further liability to the other for obligations accruing under this Lease after the Early Termination Date, except for indemnification obligations that expressly survive termination of this Lease.

------

7. Except as herein specifically modified and amended, the Lease remains in full force and effect and is hereby ratified by the parties.

IN WITNESS WHEREOF, the parties hereto have caused this Second Amendment to be executed the day and year first above written.

---

| | | | |
|:---|:---|:---|:---|
| **KRAUS-ANDERSON, INCORPORATED** | **KRAUS-ANDERSON, INCORPORATED** | **IMRICOR MEDICAL SYSTEMS, INC.** | **IMRICOR MEDICAL SYSTEMS, INC.** |
| a Minnesota corporation | a Minnesota corporation | a Minnesota corporation | a Minnesota corporation |
| By: | *<u>/s/ Phillip F. Boelter</u>* | By: | *<u>/s/ Steve Wedan</u>* |
|  | Philip F. Boelter |  | Steven Wedan |
| Its: | Executive Vice President | Its: | CEO |

---

------

**<u>EXHIBIT A</u>**

(Existing Leased Premises and Expansion Premises)

------

**<u>EXHIBIT B</u>**

(Preliminary Plans)

## Exhibit 10.7

**Exhibit 10.7**

**<u>[PORTIONS HEREIN IDENTIFIED BY [\*\*\*] HAVE BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE THE EXCLUDED INFORMATION IS BOTH (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED.]</u>**

**<u>THIRD AMENDMENT TO LEASE AGREEMENT</u>**

This Third Amendment to Lease Agreement ("Third Amendment") is effective as of the 14th day<br> of June, 2019 ("Effective Date") and is made by and between Kraus-Anderson, Incorporated, a Minnesota corporation ("Landlord") and Imricor Medical Systems, Inc., a Delaware corporation (the "Tenant").

RECITALS:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Landlord is leasing to Tenant and Tenant is leasing from Landlord certain premises commonly known as Suite 301-303 and 305 (the "Leased Premises") in the Gateway Business Park III Office Building located at 400 Gateway Boulevard, Burnsville, Minnesota 55337 pursuant to written Lease Agreement dated May 15, 2007 as amended by First Amendment to Lease Agreement dated March 23, 2009 and by Second Amendment to Lease Agreement dated October 18, 2012 (collectively, the "Lease").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The term of the Lease is scheduled to expire on July 31, 2019 and the parties have agreed to extend the term of the Lease for an additional period of thirty-nine (39) months and to amend certain other provisions of the Lease.

NOW THEREFORE, in consideration of mutual agreements contained herein, Landlord and Tenant hereby agree that the Lease shall be and hereby is amended as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>: Any term or phrase with an initial capitalized letter shall have the meaning given it by this Third Amendment, or if not so defined, shall have the meaning given it by the Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Extended Term</u>: The term of the Lease is hereby extended for an additional period of thirty-nine (39) months starting on August 1, 2019 and ending on October 31, 2022 (the "Extended Term"). The extension of the term of the Lease pursuant to this Third Amendment is in lieu of the Tenant exercising the option to renew that is currently set forth in the Lease. The parties acknowledge and agree that the Tenant's option to renew the term of the Lease is hereby terminated and of no further force or effect. Unless sooner terminated in accordance with the Lease, including, without limitation, Section 6 of this Third Amendment, the Extended Term of the Lease shall expire on October 31, 2022 and Tenant has no further option or rights to renew or extend the term of the Lease beyond October 31, 2022 unless subsequently agreed to in writing by Tenant and Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Base Rent</u>: During the Extended Term, Tenant shall pay to Landlord annual Base Rent in the amount of [\*\*\*] in monthly installments in the amount of [\*\*\*]. Monthly installments of annual Base Rent shall be paid to Landlord on or before the first (1<sup>st</sup>) day of each month during the Extended Term, beginning on August 1, 2019.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Additional Rent</u>: During the Extended Term, Tenant shall continue to pay its prorata share of Additional Rent, including but not limited to operating expenses, real estate taxes, insurance, utilities and any and all other amounts which Tenant is or becomes obligated to pay Landlord under the Lease.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Improvement Allowance</u>: Landlord hereby consents to Tenant making improvements to the Leased Premises by updating the breakrooms, per plans approved by Landlord, and cleaning the carpets and tile throughout the Leased Premises (collectively, the "Tenant's Improvements"). Tenant shall promptly pay all costs charged by Tenant's contractors and suppliers for all labor and materials provided for the Tenant's Improvements (collectively, "Tenant Improvement Costs"). Provided Tenant is not in default in performing any of its obligations under this Lease, Landlord shall pay to Tenant an improvement allowance ("Improvement Allowance") of up to [\*\*\*] as reimbursement to Tenant of all or a portion of the actual Tenant Improvement Costs paid by Tenant. The Improvement Allowance may not be used for any portion of the Tenant's Improvements that do not constitute a physical improvement to the Leased Premises or Building. Specifically, the Improvement Allowance may not be used for the cost of furniture, fixtures, equipment or cabling. If the actual total amount of the Tenant Improvement Costs is less that the maximum amount of the Improvement Allowance, Landlord shall only be obligated to pay Tenant the actual amount of the Tenant Improvement Costs and Tenant shall have no right to receive the amount of the Improvement Allowance that exceeds the Tenant Improvement Costs, either as a direct payment or as a credit against any rent payable under this Lease. Landlord shall pay the applicable amount of the Improvement Allowance to Tenant within ten (10) business days after Tenant has furnished Landlord with all of the following items:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A copy of the building permit, if required for Tenant's Improvements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) A final sworn construction cost statement, signed by Tenant and Tenant's contractor, if any, listing all of the Tenant Improvement Costs and the names and addresses of all of the contractors and suppliers used to perform Tenant's Improvements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Signed lien waivers from all contractors and suppliers for all labor and materials provided in connection with Tenant's Improvements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) A certificate of substantial completion signed by Tenant's general contractor, certifying that Tenant's Improvements are substantially complete and comply with the plans and specifications for Tenant's Improvements that were approved by Landlord.

If Tenant fails to pay any of the Tenant Improvement Costs when due, or fails to substantially complete Tenant's Improvements or fails to furnish Landlord with all of the items required by (i)-(iv) above within eighteen (18) months after the Effective Date, Tenant shall forfeit its right to receive the Improvement Allowance and thereafter Landlord shall have no further obligation to pay the Improvement Allowance to Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Early Termination</u>: Section 6 of the Second Amendment to Lease dated October 18, 2012 is hereby deleted in its entirety and in lieu thereof is substituted the following:

"At any time during the Extended Term Tenant may, at its option, terminate this Lease by giving Landlord written notice stating that Tenant is electing to terminate the Lease effective on the last day of the sixth (6th) full calendar month after the date of Tenant's notice of termination ("Early Termination Date"). On the date that Tenant provides written notice of termination to Landlord, Tenant shall pay Landlord an amount equal to the unamortized portion of the total of (i) Improvement Allowance defined in Section 5 above, and (ii) the leasing commissions and other costs incurred by Landlord to secure this Third Amendment (collectively, the "Transaction Cost") plus interest thereon at the annual rate of 8% from the date incurred by Landlord. The total Transaction Cost is estimated to be [\*\*\*]. For purposes of this Section, the actual Transaction Cost, plus interest, shall be amortized on a straight-line basis over the Extended Term and the unamortized portion of the Transaction Cost, plus interest, shall be determined by reference to the period of time remaining in the Extended Term after the Early Termination Date. On the date that Tenant provides Landlord with the written notice of termination, through and including the Early Termination Date, Tenant shall not be in default under the terms of this Lease. If Tenant is in default or subsequently does default and such default is not cured within the time allowed by this Lease, Tenant's right of early termination described in this Section shall be null and void and this Lease shall remain in full force and effect throughout the Extended Term. If this Lease is terminated in accordance with this Section, neither party hereto shall have any further liability to the other for obligations accruing under this Lease after the Early Termination Date, except for indemnification obligations that expressly survive termination of this Lease."

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Permitted Transfers</u>: Notwithstanding anything to the contrary in Article 16, Section 1 of the Lease, Landlord hereby consents to any change in ownership or effective control of Tenant resulting from the sale of Tenant's equity on the Australian Stock Exchange and Landlord waives any right to terminate the Lease based upon a change in ownership or effective control of Tenant as a result of such sales. Tenant shall remain liable for the performance of all of the Tenant's obligations under the Lease notwithstanding any such sale of equity in Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Effect</u>: Except as specifically amended by this Third Amendment, the original terms of the Lease shall remain in full force and effect and are hereby ratified by the parties.

*[signatures appear on the following page]*

------

IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to be executed as of the Effective Date first above written.

---

| | | |
|:---|:---|:---|
| **LANDLORD** | **KRAUS-ANDERSON, INCORPORATED**<br> a Minnesota corporation | **KRAUS-ANDERSON, INCORPORATED**<br> a Minnesota corporation |
|  | By: | *<u>/s/ Phillip F. Boelter</u>* |
|  |  | Philip F. Boelter |
|  | Its: | Executive Vice President |

---

---

| | | |
|:---|:---|:---|
| **TENANT** | **IMRICOR MEDICAL SYSTEMS, INC.**<br> a Delaware corporation | **IMRICOR MEDICAL SYSTEMS, INC.**<br> a Delaware corporation |
|  | By: | *<u>/s/ Gregg S. Stenzel</u>* |
|  |  | Gregg S. Stenzel |
|  | Its: | Vice President Operations |

---

*Signature page to Third Amendment to Lease Agreement*

## Exhibit 10.8

**Exhibit 10.8**

**<u>FOURTH AMENDMENT TO LEASE AND EXPANSION AGREEMENT</u>**

This Fourth Amendment to Lease and Expansion Agreement ("Fourth Amendment") is effective as of the 19th day of October, 2021 (the "Effective Date") and is made by and between Kraus-Anderson, Incorporated, a Minnesota corporation ("Landlord") and Imricor Medical Systems, Inc., a Delaware corporation ("Tenant").

**<u>RECITALS</u>**

A. Landlord is currently leasing to Tenant and Tenant is leasing from Landlord approximately 12,650 square feet of space designated as Suites 400-404 and 408 in the Gateway Business Park III office building, as shown crosshatched on <u>Exhibit A</u> to this Fourth Amendment (the "Existing Leased Premises") located at 400 Gateway Boulevard, Burnsville, Minnesota 55337 (the "Building") pursuant to written Lease Agreement dated May 15, 2007 as amended by First Amendment to Lease Agreement dated March 23, 2009, by Second Amendment to Lease Agreement dated October 18, 2012 and by Third Amendment to Lease Agreement dated June 14, 2019 (collectively, the "Lease").

B. Landlord and Tenant desire to amend the Lease to (i) extend the term of the Lease, (ii) increase the size of the Existing Leased Premises by adding thereto approximately 2,465 square feet of leaseable floor space designated as Suite 406 in the Building as shown on the attached <u>Exhibit A</u> (the "Expansion Premises"), and (iii) amend certain other provisions of the Lease as stated herein.

NOW THEREFORE, in consideration of mutual agreements contained herein and other good and valuable consideration paid, the receipt and sufficiency of which is hereby acknowledged, it is hereby agreed that the Lease shall be and hereby is amended as follows:

1. <u>Definitions</u>: Any term or phrase with an initial capitalized letter shall have the meaning given it by this Fourth Amendment, or if not so defined, shall have the meaning given it by the Lease.

2. <u>Extended Term</u>: The term of the Lease is hereby extended for an additional period of five (5) years starting on the Expansion Date, as defined in Section 3 of this Fourth Amendment and ending on the last day of the sixtieth (60<sup>th</sup>) consecutive full calendar month after the Expansion Date (the "Extended Term").

3. <u>Expansion Premises</u>: Landlord shall continue to lease to Tenant and Tenant shall continue to lease from Landlord the Existing Leased Premises, in accordance with the terms of the Lease. Beginning on the earlier of (a) the date that is thirty (30) days after the date Landlord delivers possession of the Expansion Premises to Tenant, or (b) the date the Tenant begins operating its business in the Expansion Premises (the "Expansion Date") and continuing through the expiration date of the Extended Term, Landlord hereby also leases to Tenant and Tenant hereby leases from Landlord the Expansion Premises. Except as otherwise specifically provided in this Fourth Amendment, Tenant's lease of the Expansion Premises shall be upon the same terms and conditions as set forth in the Lease and, from and after the Expansion Date, the term "Leased Premises" shall be defined to mean the Existing Leased Premises together with the Expansion Premises, and the Leased Premises shall thereafter contain approximately 15,115 square feet of space.

4. <u>Clarification</u>: Landlord and Tenant hereby acknowledge and agree that the Existing Leased Premises was previously defined in both the Second Amendment to Lease Agreement dated October 18, 2012 and in the Third Amendment to Lease Agreement dated June 14, 2019 as Suites 301-303 and 305. Subsequently, the suites numbers assigned to the Existing Leased Premises were changed to 400-404 and 408 and those numbers now correctly correspond to the Existing Lease Premises.

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5. <u>Base Rent</u>: Tenant shall continue to pay Base Rent for the Existing Leased Premises as provided in the Lease until the Expansion Date. Beginning on the Expansion Date and continuing through the expiration date of the Extended Term, Tenant shall pay Landlord annual Base Rent for the Existing Leased Premises as follows:

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| | | |
|:---|:---|:---|
| Extended Term | Monthly | Annually |
| Year 1 | $9487.50 | $113850.00 |
| Year 2 | $9487.50 | $113850.00 |
| Year 3 | $9772.12 | $117265.50 |
| Year 4 | $10067.29 | $120807.50 |
| Year 5 | $10373.00 | $124476.00 |

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Beginning on the Expansion Date and continuing through the expiration date of the Extended Term, Tenant shall also pay Landlord annual Base Rent for the Expansion Premises as follows:

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| | | |
|:---|:---|:---|
| Extended Term | Monthly | Annually |
| Year 1 | $0.00 | $0.00 |
| Year 2 | $1848.75 | $22185.00 |
| Year 3 | $1904.21 | $22850.55 |
| Year 4 | $1961.34 | $23536.07 |
| Year 5 | $2020.18 | $24242.15 |

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For purposes of this Fourth Amendment, Extended Term Year 1 shall commence on the Expansion Date and end on the last day of the twelfth (12) consecutive full month after the Expansion Date. Each subsequent "Extended Term Year" shall consist of twelve (12) consecutive full calendar months, commencing on the first day of the first full calendar month immediately following the last day of the previous "Extended Term Year".

6. <u>Additional Rent</u>: Tenant shall continue to pay Additional Rent for the Existing Leased Premises as provided in the Lease. From and after the Expansion Date, Tenant's proportionate share of such Additional Rent (i.e., operating costs, real estate taxes, insurance, utilities and all other charges, costs and expenses that are due and payable under the Lease) shall be based upon the total number of square feet in the Leased Premises being 15,115 square feet.

7. <u>Utilities</u>: From and after the date possession of the Expansion Premises is tendered to Tenant, Tenant shall be responsible for paying the cost of all utility services provided to the Expansion Premises in addition to the Existing Leased Premises.

8. <u>Expansion Premises Improvements:</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Tenant'</u><u>s Work</u>. Tenant agrees to accept the Expansion Premises in "AS-IS" condition and agrees to be responsible for any and all costs for leasehold improvements (subject to Landlord's payment of the Improvement Allowance set forth in Section 8d below) in the Leased and Expansion Premises. All construction shall meet fire and safety standards and all other city codes. From the date Landlord delivers possession of the Expansion Premises to Tenant until the Expansion Date (the "Construction Period"), Tenant shall have the right to use and occupy the Expansion Premises for purposes of constructing improvements to the Expansion Premises so that Tenant may use the Expansion Premises for Tenant's intended use pursuant to the Lease ("Tenant's Work"). Tenant's use and occupancy of the Expansion Premises during the Construction Period shall be governed by all the terms and conditions of the Lease, including, but not limited to, the payment by Tenant of all charges for utility service furnished to the Expansion Premises; provided, however, that Tenant shall not owe or pay Landlord any sums for Base Rent or real estate taxes, insurance, or operating costs associated with the Expansion Premises during the Construction Period. Tenant shall, however, continue to pay Base Rent and Additional Rent for the Existing Leased Premises during the Construction Period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Plans</u>. Tenant shall, at its sole cost and expense, have plans and specifications for Tenant's Work ("Tenant's Plans") prepared and delivered to Landlord no later than sixty (60) days after the Effective Date. Landlord makes no representation or warranty regarding the accuracy or completeness of any plans, drawings, specifications or surveys of the Leased Premises or the building in which the Expansion Premises is located that Landlord provides to Tenant and Tenant waives any claim for damages, costs or expenses it may incur as a result of any inaccuracies or errors in such plans, drawings, specifications or surveys. Landlord shall have ten (10) days after receipt of Tenant's Plans to review Tenant's Plans and make written comments thereto. If Landlord does not give written comments to Tenant within the 10 day period, Landlord shall be deemed to have approved Tenant's Plans. Upon receipt of Landlord's written comments, Landlord and Tenant shall meet and negotiate in good faith to address said comments. If the parties are unable to resolve Landlord's comments to Landlord's satisfaction within 15 business days after the date of Landlord's written comments, either party may terminate this Fourth Amendment by giving written notice to the other party. Upon Landlord's approval of Tenant's Plans, Tenant shall proceed to obtain all necessary governmental approvals and permits for Tenant's Work, and Landlord shall provide all consent(s) that may be required for Tenant to obtain the governmental approvals and permits for Tenant's Work as approved in Tenant's Plans; provided, however, that Landlord shall not be required to pay any additional costs in connection with providing such consent(s). Tenant shall not materially deviate from Tenant's Plans in the performance of the Tenant's Work, except as authorized by Landlord in writing. Landlord's approval of Tenant's Plans shall not be deemed an acceptance or approval of any item that is in violation of any applicable governmental regulations or the restrictions and shall not be a representation of compliance. Tenant shall complete all of Tenant's Work in a good and workmanlike manner and in compliance with all applicable laws, statutes, and codes and in accordance with Landlord approved Tenant's Plans. Tenant shall be solely responsible for obtaining a building permit from the City of Burnsville for the Expansion Premises, shall pay all costs in connection therewith and will provide a copy to Landlord within three (3) days after the same are issued. Prior to commencing Tenant's Work, Tenant shall allow Landlord to post a written notice in a conspicuous place within or near the Expansion Premises informing persons doing work or otherwise contributing to the improvement of the Expansion Premises that the improvements are not being made at Landlord's instance and that Landlord is not responsible for any liens filed in connection with such work nor shall Landlord's interest in the property be subject to any such lien. Tenant shall pay Landlord a fine of $100.00 if the written notice is removed from its place of posting by Tenant or Tenant's employees, agents or contractors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Delivery of Expansion Premises</u>. Landlord shall deliver possession of the Expansion Premises to Tenant on the date that is three (3) business days after the date Landlord recovers possession of the Expansion Premises from the tenant who currently occupies the Expansion Premises. Landlord shall use commercially reasonable efforts to obtain possession of the Expansion Premises from the current tenant as soon as reasonably possible. If Landlord has not been successful in recovering possession of the Expansion Premises by the date that is one hundred fifty (150) days after the Effective Date, either Landlord or Tenant may terminate this Fourth Amendment and the parties shall be restored to the rights and obligations under the Lease as they existed prior to execution of this Fourth Amendment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Improvement Allowance</u>. Landlord and Tenant agree that the terms and conditions of Section 5 of the Third Amendment to Lease Agreement dated June 14, 2019 entitled "Improvement Allowance" remain in full force and effect and the Improvement Allowance defined therein shall be paid by Landlord to Tenant as reimbursement for all or a part of the costs of Tenant's Work in the Leased and/or Expansion Premises upon satisfaction of all of the conditions stated therein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Landlord</u><u>'</u><u>s Work</u>. Landlord shall, at Landlord's sole cost, replace the two (2) existing exterior door assemblies to the Existing Leased Premises as soon as reasonably possible after full execution of this Fourth Amendment.

9. <u>Removal of Early Termination Right</u>: Section 6 of the Third Amendment to Lease Agreement dated June 14, 2019, entitled "Early Termination" is hereby deleted in its entirety and shall be of no further force or effect. Tenant acknowledges and agrees that Tenant shall have no further right to terminate the Lease under Section 6 of the Third Amendment.

10. <u>Right of First Refusal to Lease</u>: Subject to and in accordance with the terms and conditions set forth in this Section, Landlord hereby grants Tenant a one-time right of first refusal to Lease Suites 410, 414 and 416. This right of first refusal shall be exercised as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Suite 410. During the term of this Lease, if Landlord receives an offer to lease Suite 410 ("410 Offer") from a third party ("Prospect") that is acceptable to Landlord, Landlord shall give Tenant written notice of Landlord's receipt of the 410 Offer ("Landlord's Notice") and the relevant terms and conditions of the 410 Offer. If Tenant elects to exercise its right of first refusal, Tenant must give Landlord written notice of such election within six (6) business days after Tenant's receipt of Landlord's Notice. If Tenant fails to give written notice of Tenant's exercise of its right to lease within said six (6) business day period, Tenant's rights under this Section shall lapse with respect to Suite 410 and Landlord shall thereafter have the right to accept the 410 Offer and lease Suite 410 to the Prospect, without any further notice to or consent or act of Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Suite 414. During the term of this Lease, if Landlord receives an offer to lease Suite 414 ("414 Offer") from a third party ("Prospect") that is acceptable to Landlord, Landlord shall give Tenant written notice of Landlord's receipt of the 414 Offer ("Landlord's Notice") and the relevant terms and conditions of the 414 Offer. If Tenant elects to exercise its right of first refusal, Tenant must give Landlord written notice of such election within six (6) business days after Tenant's receipt of Landlord's Notice, however, if Suite 410 is vacant at the time Landlord gives Tenant notice of the 414 Offer, Tenant may only exercise its right of first refusal to lease Suite 414 if Tenant also agrees to lease Suite 410 on the same terms as contained in the 414 Offer. If Tenant fails to give written notice of Tenant's exercise of its right to lease within said six (6) business day period, Tenant's rights under this Section shall lapse with respect to Suite 414 and Landlord shall thereafter have the right to accept the 414 Offer and lease Suite 414 to the Prospect, without any further notice to or consent or act of Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Suite 416. During the term of this Lease, if Landlord receives an offer to lease Suite 416 ("416 Offer") from a third party ("Prospect") that is acceptable to Landlord, Landlord shall give Tenant written notice of Landlord's receipt of the 416 Offer ("Landlord's Notice") and the relevant terms and conditions of the 416 Offer. If Tenant elects to exercise its right of first refusal, Tenant must give Landlord written notice of such election within six (6) business days after Tenant's receipt of Landlord's Notice, however, if Suite 410 and Suite 414 are vacant at the time Landlord gives Tenant notice of the 416 Offer or if Landlord is able to relocate any tenant then occupying either Suite 410 or Suite 414, Tenant may only exercise its right of first refusal to lease Suite 416 if Tenant also agrees to lease Suite 410 and Suite 414 on the same terms as contained in the 416 Offer. If Tenant fails to give written notice of Tenant's exercise of its right to lease within said six (6) business day period, Tenant's rights under this Section shall lapse with respect to Suite 416 and Landlord shall thereafter have the right to accept the 416 Offer and lease Suite 416 to the Prospect, without any further notice to or consent or act of Tenant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Lease or Amendment. If Tenant gives Landlord written notice in accordance with subparagraph (a), (b) or (c), as applicable, Tenant must then execute and deliver either a separate lease agreement for the applicable suite or suites or an amendment to this Lease adding the applicable suite or suites to the Leased Premises, which lease or amendment must be signed and delivered by Tenant no later than thirty (30) days after Tenant's written notice to Landlord. The lease or amendment must contain same terms and conditions contained in the applicable Offer, provided however that Landlord shall not be required to pay any brokerage commission to any party representing Tenant in connection with an exercise of the Tenant's right of first refusal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Failure to Exercise. Notwithstanding anything herein to the contrary, if Tenant fails or elects not to deliver written notice to Landlord in accordance with subparagraph (a), (b) or (c) as applicable, or otherwise fails to comply with all of the stated conditions contained herein, Tenant's right of first refusal to lease the applicable suite or suites shall thereafter be null and void and Landlord shall have the right to lease to the Prospect or subsequently lease the applicable suite or suites to any other third party without further notice to Tenant.

11. <u>Representations</u>: The undersigned hereby warrants and represents to Landlord that (a) the name and title of the person signing this Fourth Amendment on behalf of the Tenant are accurately stated below, (b) the undersigned is a duly appointed and acting representative of the Tenant with full power and authority to execute and deliver this Fourth Amendment, and (c) upon full execution, this Fourth Amendment will constitute the legal, valid and binding obligations of the Tenant, enforceable in accordance with its terms.

12. <u>Ratification</u>: Except as specifically amended by this Fourth Amendment, the Lease remains in full force and effect and is hereby ratified by the parties. Tenant has accepted possession of and occupies the Existing Leased Premises under the Lease and, except as stated in this Fourth Amendment, any improvements required by the terms of the Lease to be made by the Landlord have been completed and accepted by Tenant and Tenant agrees that, as of the Effective Date of this Fourth Amendment, Landlord is not in default in the performance of any of Landlord's obligations under the Lease.

13. <u>Counterparts/Electronic Signature</u>: To facilitate execution, this Fourth Amendment may be executed in any number of counterparts as may be convenient or necessary, and it shall not be necessary that the signatures of the parties hereto be contained on any one counterpart hereof. Additionally, for purposes of facilitating the execution and delivery of this Fourth Amendment the parties hereto covenant and agree that: (a) the signature pages taken from separate individually executed counterparts of this Fourth Amendment may be combined to form multiple fully-executed counterparts; and (b) a telecopy or electronic delivery of a party's signature on an original or any copy of this Fourth Amendment via fax machine or over the internet shall be deemed to be the delivery of the original signature of such party. All executed counterparts of this Fourth Amendment shall be deemed to be originals, but all such counterparts, taken together or collectively, shall constitute one and the same agreement.

*[signatures appear on the following page]*

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IN WITNESS WHEREOF, the undersigned has caused this Fourth Amendment to Lease Agreement to be executed the day and year first above written.

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| | | |
|:---|:---|:---|
| **LANDLORD** | **KRAUS-ANDERSON, INCORPORATED**<br> a Minnesota corporation | **KRAUS-ANDERSON, INCORPORATED**<br> a Minnesota corporation |
|  | By: | *<u>/s/ Philip F. Boelter</u>* |
|  | Name: | Philip F. Boelter |
|  | Its: | Executive Vice President |

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*[Landlord*'*s signature page to Fourth Amendment to Lease Agreement]*

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IN WITNESS WHEREOF, the undersigned has caused this Fourth Amendment to Lease Agreement to be executed the day and year first above written.

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| | | |
|:---|:---|:---|
| **TENANT** | **IMRICOR MEDICAL SYSTEMS, INC.**<br> a Delaware corporation | **IMRICOR MEDICAL SYSTEMS, INC.**<br> a Delaware corporation |
|  | By: | *<u>/s/ Gregg Stenzel</u>* |
|  | Name: | Gregg Stenzel |
|  | Its: | Chief Operating Officer |

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*[Tenant*'*s signature page to Fourth Amendment to Lease Agreement]*

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**EXHIBIT A**

[Depiction of Existing Leased Premises and Expansion Space]

## Exhibit 10.9

**Exhibit 10.9**

**<u>[PORTIONS HEREIN IDENTIFIED BY [\*\*\*] HAVE BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE THE EXCLUDED INFORMATION IS BOTH (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED.]</u>**

**<u>OFFICE/WAREHOUSE LEASE AGREEMENT</u>**

**THIS LEASE** ("Lease"), is made as of August<u> </u>, 2018, by and between MSP Industrial Portfolio Owner, LLC, a Delaware limited liability company ("Landlord"), and Imricor Medical Systems, Inc., a Delaware corporation ("Tenant"), upon the following terms and conditions:

**Article 1. Definitions**

The following terms shall have the meanings specified herein:

1.01 <u>Building</u>. The "Building" is the office/warehouse building located at 12255-12287 Nicollet Avenue S., Burnsville, Minnesota 55337, together with all related land, improvements, parking facilities, common areas, driveways, sidewalks, and landscaping.

1.02 <u>Premises</u>. The "Premises" is Suite 12261 A in the Building, as outlined on the drawing attached hereto as **<u>Exhibit A</u>**.

1.03 <u>Rentable Area of the Premises</u>. 4,592 rentable square feet.

1.04 <u>Lease Term</u>. The "Lease Term" or "Term" shall mean the seven (7) year and three (3) month period between the Commencement Date and the Expiration Date, unless sooner terminated or extended as otherwise provided in this Lease.

1.05 <u>Commencement Date</u>. Subject to adjustment as provided in Article 3, the Commencement Date shall be the day after expiration of the Early Access Period.

1.06 <u>Expiration Date</u>. Subject to adjustment as provided in Article 3, the Expiration Date shall be the last day of the month that is eighty-seven (87) months after Commencement Date.

1.07 <u>Base Rent</u>. "Base Rent" for each month or year of the Lease Term is:

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| | | |
|:---|:---|:---|
| <u>Time Period</u> | <u>Annual Rent/Sq. Ft.</u> | <u>Monthly Base Rent</u> |
| Months 1-3 | [\*\*\*] | [\*\*\*] |
| Months 4-12 | [\*\*\*] | [\*\*\*] |
| Months 13-24 | [\*\*\*] | [\*\*\*] |
| Months 25-36 | [\*\*\*] | [\*\*\*] |
| Months 37-48 | [\*\*\*] | [\*\*\*] |
| Months 49-60 | [\*\*\*] | [\*\*\*] |
| Months 61-63 | [\*\*\*] | [\*\*\*] |
| Months 64-75 | [\*\*\*] | [\*\*\*] |
| Months 76-87 | [\*\*\*] | [\*\*\*] |

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\*As reflected above, Tenant shall have no obligation to pay monthly Rent for the initial three (3) months of the Lease Term (the "Free Rent Period"), reflecting the abatement of Rent for each of the three (3) months of the Free Rent Period. If the Lease is terminated during such Free Rent Period, Tenant shall not be entitled to any such rent abatement after the date of termination nor shall Tenant be entitled to assert any right to rent abatement after such termination against any sums due Landlord. The rent abatement granted under this Section is solely for the benefit of Imricor Medical Systems, Inc., and shall not be transferable to any assignee or subtenant. In the event of a default by Tenant under the terms of this Lease which results in early termination pursuant to the provisions hereof, then as a part of the recovery to which Landlord shall be entitled shall be included a portion of such rent which was abated under the provisions of this Section, which portion shall be determined by multiplying the total amount of rent which was abated under this Section by a fraction, the numerator of which is the number of months remaining in the Term of this Lease at the time of such default and the denominator of which is the number of months during the Term that Tenant is obligated to pay monthly Rent. Notwithstanding the foregoing, during the Free Rent Period, Tenant shall be required to pay its utilities and other expenses not defined as Rent during the Early Access Period.

1.08 <u>Tenant</u><u>'</u><u>s Percentage Share</u>. Five and 96/100 percent (5.96%).

1.09 <u>Security Deposit</u>. One month's Rent, as defined in Section 4.01.

The Security Deposit is due and payable upon Tenant's execution of this Lease.

1.10 <u>Tenant</u><u>'</u><u>s Permitted Use</u>. Office and warehouse uses related to medical devices and systems ("Tenant's Permitted Use").

1.11 <u>Landlord</u><u>'</u><u>s Notice Address</u>. MSP Industrial Portfolio Owner, LLC, c/o Capital Partners, 900 2nd Avenue S, Suite 1575, Minneapolis, MN 55402, ATTN: Kellee Vinge.

1.12 <u>Tenant</u><u>'</u><u>s Notice Address</u>. "Tenant's Address for Notices" shall mean: Imricor Medical Systems, Inc., 400 Gateway Blvd., Burnsville, MN 55337 ATTN: Gregg Stenzel.

1.13 <u>Tenant</u><u>'</u><u>s Early Access to Premises</u>. Landlord agrees, subject to the terms and conditions set forth herein, that Tenant shall have the right to enter and occupy the Premises upon substantial completion of the Leasehold Improvements for a period of thirty (30) days and continuing up and until the Commencement Date ("Early Access Period"), provided this Lease is fully executed, to permit Tenant to install Tenant's furniture, fixtures and equipment and to make the Premises ready for Tenant's use and occupancy and to conduct its business operations; provided, however, that prior to such entry of the Premises, Tenant shall provide evidence reasonably satisfactory to Landlord that Tenant's and any of its contractors' insurance as required in the Lease shall be in effect as of the time of such entry and that Tenant has secured all permits and approvals for any improvements or alterations, if applicable, to be performed in the Premises by Tenant during such access period. During the Early Access Period, all terms and conditions of the Lease shall apply, provided, Tenant shall have no obligation to pay Rent for the Premises during the Early Access Period. Notwithstanding the foregoing, Tenant shall be required to pay its utilities and other expenses not defined as Rent during the Early Access Period.

**Article 2. Premises**

Landlord hereby leases the Premises to Tenant, and Tenant hereby leases the Premises from Landlord, upon all of the terms, covenants and conditions contained in this Lease. Landlord shall deliver the Premises to Tenant "as is, where is" other than for the Leasehold Improvements and any other improvements referenced in a separate written agreement, if any, specifically listing the work that Landlord will perform on or prior to the Commencement Date. Tenant acknowledges that Landlord has not made any representation or warranty with respect to the suitability or fitness of either the Premises or the Building for the conduct of Tenant's Permitted Use or for any other purpose, and Tenant acknowledges that it has had a full opportunity to make its own determination in this regard.

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**Article 3. Term**

Except as otherwise provided in this Lease, the Lease Term shall be for the period commencing on the Commencement Date and ending on the Expiration Date; provided, however, that, if, for any reason, Landlord is unable to deliver possession of the Premises on the Commencement Date, Landlord shall not be liable for any damage caused thereby, nor shall the Lease be void or voidable, but, rather, the Lease Term shall commence upon, and the Commencement Date shall be, the date that possession of the Premises is so tendered to Tenant, and the Expiration Date shall be extended by an equal number of days; however, Tenant-caused delays shall have no effect on the Commencement Date and Expiration Date. On the Expiration Date, Tenant shall turn over the Premises to Landlord in the condition outlined on **<u>Exhibit B</u>** attached hereto and incorporated herein by reference.

**Article 4. Base Rent; Additional Rent**

4.01 <u>Rent; Payment</u>. During the Lease Term, on or before the 1st day of each month, Tenant shall pay to Landlord: (a) the Base Rent; plus (b) Tenant's Percentage Share of Taxes for such year and Tenant's Percentage Share of Operating Expenses paid or incurred by Landlord during such year; plus (c) any charges incurred directly on behalf of Tenant (collectively, "Additional Rent"). All Base Rent, Additional Rent, and all other amounts payable to Landlord by Tenant (collectively, "Rent") pursuant to the provisions of this Lease, shall be paid to Landlord, without notice, demand, abatement, deduction or offset, in lawful money of the United States via ACH, U.S. Mail, or overnight courier as follows:

<u>Via ACH</u>

Bank:

ABA/Routing No.:

Account No.:

Account Name:

<u>Via Mail</u>

MSP Industrial Portfolio Owner, LLC

P.O. Box 856652

Minneapolis, MN 55485-6652

<u>Via Overnight Courier</u>

MSP Industrial Portfolio Owner, LLC

900 Second Ave S

Suite 1575

Minneapolis, MN 5540

From time to time, Landlord may designate in writing that payments be made to such other person or at such other place. If the Lease Term commences or terminates on a day other than the first or last day of a calendar month, Rent payable in such month shall be pro-rated on a per diem basis.

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One Month's Rent is due and payable upon Tenant's execution of this Lease, which shall be a credit applied to Tenant's first installment of Rent.

4.02 <u>Taxes</u>. "Taxes" shall mean the aggregate amount of all real estate taxes, assessments (whether they be general or special), and any other federal, state or local governmental charge, general, special, ordinary or extraordinary, which Landlord shall pay or become obligated to pay in connection with the Building, or any part thereof. Taxes shall include all fees and costs, including attorneys' fees, appraisers' and consultants' fees, incurred by Landlord in seeking to obtain a reduction of, or a limit on the increase in, any Taxes, regardless of whether any reduction or limitation is obtained. Taxes for any calendar year shall be Taxes which are due for payment or are paid during such year.

4.03 <u>Operating Expenses</u>. "Operating Expenses" shall mean: (a) all costs, fees, disbursements and expenses paid or incurred by or on behalf of Landlord in the operation, ownership, maintenance, management, replacement and repair of the Building; plus (b) all costs, fees, disbursements and expenses paid or incurred by or on behalf of Landlord for premiums for hazard, special perils, casualty, rent interruption and liability insurance and all other insurance obtained by Landlord in connection with or relating to the Building. Operating Expenses include the cost of any improvements, expenditures, repairs or replacements to the Building, or any equipment or machinery used in connection with the Building; provided, however, that any such costs which are properly charged to a capital account shall not be payable in a single year but shall instead be amortized over their useful lives, as determined by the Landlord in accordance with generally accepted accounting principles. Operating Expenses include Landlord's management fee of 5% of gross revenues of the Building. Operating Expenses shall not include costs of tenant improvements to the premises of other tenants in the Building, depreciation charges, interest and principal payments on mortgages, real estate brokerage and leasing commissions, and expenses incurred in enforcing obligations of tenants of the Building. Operating Expenses for repairs to the Premises' HVAC will not exceed $1,000.00 per year.

4.04 <u>Adjustment Procedure: Estimates</u>. From time to time, Landlord shall give Tenant written notice of Landlord's estimate of the Additional Rent payable by Tenant under this Article 4. Within ninety (90) days after the close of each calendar year, or as soon thereafter as is practicable, Landlord shall deliver to Tenant a statement of that year's actual Taxes and Operating Expenses for such calendar year, as determined and certified by Landlord (the "Landlord's Statement"). If the amount of Tenant's Percentage Share of actual Tax and Operating Expenses is more than the Additional Rent payments made by Tenant, Tenant shall pay the deficiency to Landlord within five (5) days after receipt of Landlord's Statement. Tenant's obligation with respect to any amounts owed to Landlord shall survive the expiration of the Lease Term, and shall be invoiced to Tenant when the same have been accurately determined or, at Landlord's option, such amounts shall be reasonably estimated by Landlord to reflect the period of time the Lease was in effect during such billing period. If the amount of Tenant's Percentage Share of actual Tax and Operating Expenses is less than the Additional Rent payments made by Tenant, any excess shall be credited against installments of Base Rent or Additional Rent next payable by Tenant under this Lease or, if the Lease Term has expired, any excess thereof shall be paid to Tenant within thirty (30) days after determination of such overpayment. No delay in providing the statements described in this Section 4.04 shall act as a waiver of Landlord's right to payment hereunder. Notwithstanding the foregoing, Tenant's right to receive any credit or payment hereunder is conditioned on Tenant not being in default beyond any applicable cure period under this Lease on the date such credit or payment is made, provided such credit or payment shall be made if such default is cured.

4.05 <u>Late Charge; Interest</u>. Landlord and Tenant agree that if Landlord does not receive any payment of Rent or any other amount payable by Tenant to Landlord hereunder on or before five (5) days after the date payment is due, Tenant shall pay to Landlord, as rent: (a) a late charge equal to eight percent (8%) of the overdue amount; and (b) interest on the delinquent amounts at the lesser of the maximum rate permitted by law, if any, or eighteen percent (18%) per annum from the date due to the date paid.

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4.06 <u>Additional Taxes</u>. Tenant shall reimburse Landlord within five (5) days after written demand for all taxes payable by or imposed upon Landlord upon or with respect to: any fixtures or personal property located in the Premises; any leasehold improvements made in or to the Premises by or for Tenant; or any gross receipts tax, license fee or excise tax levied by any governmental authority.

**Article 5. Security Deposit**

Tenant shall deposit the Security Deposit with Landlord. The Security Deposit is made by Tenant to secure the faithful performance of all the terms, covenants and conditions of this Lease to be performed by Tenant. If Tenant is in Default with respect to any provision of this Lease, Landlord may apply all or a portion of the Security Deposit for the payment of any sum due or for the payment of any amount which Landlord expends by reason of such Default. If any portion of the Security Deposit is so applied, Tenant shall deposit with Landlord, within five (5) days after receipt of Landlord's written demand, an amount sufficient to restore the Security Deposit to its original amount Landlord shall not be required to keep the Security Deposit separate from its general accounts, and Tenant shall not be entitled to interest on the Security Deposit. Provided that no default then exists under this Lease, the Security Deposit shall be refunded to Tenant within thirty (30) days after the expiration or termination of the Lease Term

**Article 6. Use of Premises**

6.01 <u>Permitted Use</u>. Tenant shall use the Premises only for Tenant's Permitted Use and shall not use or permit the Premises to be used for any other purpose without the prior written consent of Landlord. Tenant shall, at its sole cost and expense, obtain all governmental licenses and permits required for Tenant to conduct Tenant's Permitted Use.

6.02 <u>Compliance With Laws</u>. Tenant shall cause the Premises to comply with all current and future laws, ordinances, regulations and directives of any governmental authority, including without limitation any law, ordinance, regulation, covenant, condition or restriction affecting the Building, the Premises, or Tenant's Permitted Use which now or in the future may become applicable thereto (collectively, "Applicable Laws"). Tenant shall not use the Premises, or permit the Premises to be used, in any manner which: (a) violates any Applicable Law; (b) causes or is reasonably likely to cause damage to the Building or the Premises; (c) violates any requirement or condition of any insurance policy covering the Building and/or the Premises, or increases the cost of any such policy; or (d) constitutes a nuisance, annoyance, or inconvenience to other tenants or occupants of the Building or the Building's equipment, facilities, or systems. If other tenants or occupants of the Building complain about noise or vibrations emanating from the Premises, Tenant shall act to mitigate or cure such noise or vibrations to a level reasonably determined and approved by Landlord, which approval shall not be unreasonably withheld, conditioned, or delayed.

6.03 <u>Rules and Regulation</u>. Tenant shall abide by, and faithfully observe and comply with, Landlord's rules and regulations for the Building and common areas attached hereto as **<u>Exhibit C</u>**, and any amendments, modifications, or additions thereto as may now or hereafter be adopted and published by written notice to tenants by Landlord. Landlord shall not be liable to Tenant for any violation of such rules and regulations by any other tenant or occupant of the Building so long as Landlord uses reasonable efforts to enforce the same.

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6.04 <u>Hazardous Materials</u>. No Hazardous Materials shall be handled, generated, stored, discharged, or released upon, about, above or beneath the Premises or any portion of the Building by or on behalf of Tenant, its employees, agents, or representatives other than *de minimis* quantities of office products and cleaning supplies used and stored in compliance with Environmental Laws. Tenant shall complete and certify to disclosure statements as requested by Landlord from time to time relating to Tenant's transportation, storage, use, generation, manufacture or release of Hazardous Materials on the Premises. "Hazardous Materials" means: (a) any material or substance: (i) which is defined or becomes defined as a "hazardous substance", "hazardous waste", "infectious waste", "chemical mixture or substance," or "air pollutant" under Environmental Laws; (ii) containing petroleum, crude oil or any fraction thereof; (iii) containing polychlorinated biphenyls (PCB's); (iv) containing asbestos; (v) which is radioactive; (b) any other material or substance displaying toxic, reactive, ignitable or corrosive characteristics, or (c) materials which cause a nuisance upon or waste to the Premises or any portion of the Building. "Environmental Laws" means and includes all now and hereafter existing statutes, laws, ordinances, codes, regulations, rules, rulings, orders, decrees, directives, policies and requirements by any federal, state or local governmental authority regulating, relating to, or imposing liability or standards of conduct concerning public health and safety or the environment. Tenant indemnifies, defends, and holds the Landlord Parties harmless from and against any and all Losses arising from or in connection with the creation or existence of any Hazardous Materials in, at, on, or under the Premises or the Property, if and to the extent brought to the Premises or the Property or caused by any or all of Tenant, its affiliates, parents, subsidiaries, and their respective trustees, directors, shareholders, partners, members, managers, venturers, officers, employees, agents, invitees, assignees, sublessees, contractors, or representatives.

6.05 <u>Public Accommodations</u>. Tenant shall not use the Premises in any manner that would cause the Premises or the Building to be deemed a "place of public accommodation" under the Americans with Disabilities Act of 1990 (as amended) if such use would require any alteration, unless Tenant agrees in writing to undertake and complete, at Tenant's own cost, those modifications or additions to the Premises or the Building required for ADA compliance. Notwithstanding the foregoing, Landlord shall be responsible for modifications or additions to the Premises or the Building required for ADA compliance regarding non-conformities that existed prior to the Commencement Date

**Article 7. Utilities and Services**

Landlord shall provide normal and ordinary utility service connections for electricity, water, sewer, telephone, and natural gas into the Premises and Tenant shall arrange, at its sole expense, with the appropriate utility company to install all necessary connections and without fail shall maintain, in continuous operation during the entire Term of the Lease, all such service, whether or not Tenant is in actual possession of the Premises. To the extent separately metered or otherwise charged to Tenant by the provider thereof, Tenant shall pay for all electricity, water, sewer, telephone, telecom, gas, heat, light, sweeping and other janitorial services, rubbish and trash disposal, and any other utilities or services supplied in, about or related to the Premises, together with any taxes thereon, connection charges and deposits. If any such utilities and services are not separately metered or charged to Tenant, Tenant shall pay a reasonable portion to be determined by Landlord of all charges jointly metered with other premises of the Building. Landlord shall not be required to pay for any service, supplies or upkeep in connection with the Premises. Tenant shall arrange for and pay for all telephone and telecom service and equipment, including any additions or alterations to the existing telephone or telecom service boards and conduit, which shall be completed without interference to the service and/or equipment of other tenants in the Building and which shall be appropriately labeled upon the termination of this Lease. Landlord shall not be liable for any failure to furnish, stoppage of, or interruption in furnishing any of the services or utilities described herein. Tenant recognizes that any security services provided by Landlord at the Building are for the protection of Landlord's property and under no circumstances shall Landlord be responsible for, and Tenant waives any rights with respect to, providing security or other protection for Tenant or its employees, invitees or property in or about the Premises or the Building.

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**Article 8. Maintenance and Repairs**

8.01 <u>Landlord</u><u>'</u><u>s Obligations</u>. During the Lease Term, Landlord shall maintain, subject to reimbursement as a part of Operating Expenses, the roof, foundation and exterior walls (excluding all windows, plate glass, and doors) of the Building in good repair and condition, except for ordinary wear and tear. Landlord also shall maintain, subject to reimbursement as part of Operating Expenses, the downspouts and fire safety sprinkler system of the Building and HVAC serving the Premises. Landlord shall maintain all landscaped areas, parking areas, driveways and walkways, including sweeping and removal of snow and ice, as applicable. Subject to Article 11, Landlord shall not be liable to Tenant for any damage or inconvenience associated with or related to the performance of, or failure to perform, any such maintenance. Tenant shall not be entitled to any abatement or reduction of Rent by reason of any maintenance, repairs, alterations or additions made by Landlord under this Lease. Subject to Article 11.07, Tenant shall, at its sole cost, pay for any damage to the roof, foundation and/or external walls caused by any act, omission, negligence or fault of Tenant or any employee, agent or contractor of Tenant.

8.02 <u>Tenant</u><u>'</u><u>s Obligations</u>. During the Lease Term, Tenant shall, at its own risk and at its sole cost and expense, maintain, service, repair, and replace, if necessary, and keep in good condition and repair all portions of the Premises, which are not expressly the responsibility of Landlord under this Lease, including, but not limited to, heating, ventilation and air conditioning systems, all glass elements, doors (including dock doors), dock bumpers, interior walls and finish work, floors and floor coverings, regular cleaning, janitorial service, removal of debris, and pest extermination. Subject to Article 11.07, Tenant shall be responsible for, and within five (5) days after written demand by Landlord shall promptly reimburse Landlord for, any damage to any portion of the Building or the Premises caused by (a) Tenant's activities in the Building or the Premises; (b) the performance or existence of any alterations, additions or improvements made by Tenant in or to the Premises; (c) the installation, use, operation or movement of Tenant's property in or about the Building or the Premises; or (d) any negligence or misconduct Tenant or its officers, partners, employees, agents, contractors or invitees. Tenant shall, at its own cost and expense, repair or replace any damage or injury to all or any part of the Premises or Building caused by Tenant or Tenant's agents, employees, invitees, licensees or visitors; provided, however, if Tenant fails to make such repairs or replacements within thirty (30) days after written notice from Landlord (or such additional time as may be reasonably necessary for completion so long as Tenant promptly commences and diligently pursues completion), Landlord may, at its option, make such repairs or replacements, and Tenant shall reimburse the cost, plus a ten percent (10%) overhead charge therefore, to Landlord within five (5) days after written demand. If determined by a certified HVAC contractor, approved by Landlord, that any HVAC unit serving the Premises can no longer be repaired and must be replaced, the cost of any such HVAC unit replacement shall be completed and paid for by Landlord and amortized over the useful life of such equipment (as defined by generally accepted accounting practices) and reimbursed by Tenant on a monthly basis as Additional Rent, provided Tenant shall not be responsible for the payment of any amortized costs beyond the Term (except any extension or renewal thereof) of the Lease. Tenant shall not commit or allow any waste or damage to be committed on any portion of the Premises, and at the termination of this Lease, by lapse of time or otherwise, Tenant shall deliver the Premises to Landlord, broom clean with all debris and personal property removed, in as good condition as at the date of first possession by Tenant, ordinary wear and tear, casualty and condemnation excepted.

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**Article 9. Alterations**

Tenant shall not make or permit to be made any alterations, additions, or improvements in or to the Premises ("Alterations") without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed. All work relating to the Alterations shall be performed in compliance with the plans and specifications approved by Landlord, all applicable laws, ordinances, rules, regulations and directives of all governmental authorities having jurisdiction and the requirements of all carriers of insurance on the Premises or the Building, the Board of Underwriters, Fire Rating Bureau, or similar organizations. All Alterations shall be constructed and/or installed by licensed, bonded, and insured contractors approved by Landlord, in a good and workmanlike manner using new materials of the same character, kind and quality as originally employed in, on or about the Building, and in compliance with all applicable legal requirements, as well as all requirements of Landlord's insurance carrier and lender, if any. Landlord may monitor construction of any such Alterations. Tenant shall reimburse Landlord for its reasonable out of pocket costs, if any, in reviewing plans and specifications and in monitoring construction of such Alterations. Landlord's right to review plans and specifications and to monitor construction shall be solely for its own benefit, and Landlord shall have no duty to see that such plans and specifications or construction comply with legal requirements. Tenant shall pay when due all costs for work performed and materials supplied to the Premises. Tenant shall keep Landlord, the Premises and the Building free from all liens, stop notices and violation notices relating to the Alterations or any other work performed for, materials furnished to or obligations incurred by Tenant, and Tenant shall protect, indemnify, hold harmless and defend Landlord, the Premises and the Building of and from any and all loss, cost, damage, liability and expense, including attorneys' fees, arising out of or related to any such liens or notices. All Alterations shall become a part of the Premises and shall become the property of Landlord upon the expiration or earlier termination of this Lease, unless Landlord shall, by notice given to Tenant, require Tenant to remove some or all of Tenant's Alterations, in which event Tenant shall promptly remove the designated Alterations and shall promptly repair any resulting damage, all at Tenant's sole expense. It is understood and agreed that neither the MR scanner and accessory equipment, concrete isolation pad and Tenant's office furnishings and equipment shall not constitute "Alterations" for the purposes of this Lease.

**Article 10. Indemnification**

10.01 Subject to Article 11.07, Tenant agrees to protect, indemnify, hold harmless and defend Landlord, any mortgagee, and each of their respective partners, directors, officers, property manager, managers, agents and employees, successors and assigns, from and against any and all loss, cost, damage, liability or expense as incurred (including but not limited to actual attorneys' fees and legal costs) arising out of or related to any claim, suit or judgment brought by or in favor of any person or persons for damage, loss or expense due to, but not limited to, bodily injury, including death, or property damage sustained by such person or persons which arises out of, is occasioned by or is in any way attributable to the use or occupancy of the Premises or any portion of the Building by Tenant or the negligence or misconduct of Tenant or its agents, employees, contractors, clients, invitees or subtenants. Notwithstanding anything to the contrary contained herein, nothing shall be interpreted or used in any way to affect, limit, reduce or abrogate any insurance coverage provided by any insurers to either Tenant or Landlord. Should Landlord be made a party to any litigation instituted by Tenant against a party other than Landlord, or by a third party against Tenant, Tenant shall indemnify, hold harmless and defend Landlord from any and all loss, cost, liability, damage or expense incurred by Landlord, including attorneys' fees, in connection with such litigation. Nothing contained in this Article 10 shall obligate Tenant to indemnify Landlord against the negligence or misconduct of Landlord, its employees, agents or contractors, clients, or invitees.

10.02 Subject to Article 11.07, Landlord agrees to protect, indemnify, hold harmless and defend Tenant, its partners, directors, officers, property manager, managers, agents and employees, successors and assigns, from and against any and all loss, cost, damage, liability or expense as incurred (including but not limited to actual attorneys' fees and legal costs) arising out of or related to any claim, suit or judgment brought by or in favor of any person or persons for damage, loss or expense due to, but not limited to, bodily injury, including death, or property damage sustained by such person or persons which arises out of, is occasioned by or is in any way attributable to the use or occupancy of the Common Areas by Tenant or the negligence or misconduct of Landlord or its agents, employees, contractors, clients, or invitees. Notwithstanding anything to the contrary contained herein, nothing shall be interpreted or used in any way to affect, limit, reduce or abrogate any insurance coverage provided by any insurers to either Tenant or Landlord. Should Tenant be made a party to any litigation instituted by Landlord against a party other than Tenant, or by a third party against Landlord, Landlord shall indemnify, hold harmless and defend Tenant from any and all loss, cost, liability, damage or expense incurred by Landlord, including attorneys' fees, in connection with such litigation. Nothing contained in this Article 10 shall obligate Landlord to indemnify Tenant against the negligence or misconduct of Tenant, its employees, agents, contractors, clients, invitees or subtenants.

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**Article 11. Insurance**

11.01 <u>Property Insurance</u>. At all times during the Lease Term, Tenant shall procure and maintain, at its sole expense, special perils property insurance, in an amount not less than one hundred percent (100%) of the replacement cost, covering (a) all leasehold improvements in and to the Premises which are made at the expense of or on behalf of Tenant; and (b) Tenant's trade fixtures, equipment and other personal property from time to time situated in the Premises, including, without limitation, all floor and wall coverings. The proceeds of such insurance shall be used for the repair or replacement of the property so insured, except that if not so applied or if this Lease is terminated following a casualty, the proceeds applicable to the leasehold improvements shall be paid to Landlord and the proceeds applicable to Tenant's personal property shall be paid to Tenant. At all times during the Lease Term, Tenant shall procure and maintain business interruption insurance covering at least twelve (12) months of loss of income and continuing expense.

11.02 <u>Liability Insurance</u>. At all times during the Lease Term, Tenant shall procure and maintain, at its sole expense, commercial general liability insurance applying to the use and occupancy of the Premises and the business operated by Tenant. Such insurance shall have a minimum combined single limit of liability of at least $2,000,000 per occurrence and a general aggregate limit of at least $3,000,000. All such policies shall be written to apply to all bodily injury, property damage, and personal injury losses and shall be endorsed to include Landlord and its partners, directors, officers, agents, employees, property manager, and any mortgagee of the Building.

11.03 <u>Workers Compensation / Employers</u><u>'</u> <u>Liability Insurance</u>. Workers compensation insurance covering all of Tenant's employees, which insurance shall include the following: Coverage A – statutory amount, and Coverage B – employers' liability insurance with limits not less than $500,000 each accident, $500,000 disease-policy limit and $500,000 disease-each employee

11.04 <u>Pollution Liability Insurance</u>. [Intentionally Omitted.]

11.05 <u>Policy Requirements</u>. All insurance required to be maintained by Tenant shall be issued by insurance companies authorized to do insurance business in the State of Minnesota and rated not less than A-VII in Best's Insurance Guide and a Standard and Poor's claims paying ability rating of not less than AA. A certificate of insurance (or, at Landlord's option, copies of the applicable policies) evidencing the insurance required under this Article 11 shall be delivered to Landlord prior to the Commencement Date. No such policy shall be subject to cancellation or modification without thirty (30) days prior written notice to Landlord and to any mortgagee of the Building. Tenant shall furnish Landlord with a replacement certificate with respect to any insurance not less than thirty (30) days prior to the expiration of the current policy. Tenant shall have the right to provide the insurance required hereunder pursuant to blanket policies, but only if such blanket policies expressly provide coverage to the Premises, the Landlord, and any mortgagee, as required by this Lease. If Tenant fails to maintain any insurance which Tenant is required to maintain hereunder, Tenant shall be liable to Landlord for any loss or cost resulting from such failure to so maintain.

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11.06 <u>Additional Insured Requirements</u>. The commercial general liability insurance and pollution liability insurance shall name Landlord, its affiliates, parent and subsidiaries, and their respective trustees, directors, officers, members, managers, venturers, partners, shareholders, agents, contractors, representatives, property managers, lenders, assignees, affiliates and employees (collectively with Landlord, "Landlord Parties") as additional insureds.

11.07 <u>Release and Waiver of Subrogation</u>. Each party hereby waives and releases any right of recovery against the other for injury or loss to property suffered by the insured arising from any risk which is required to be insured above regardless of the fault of the other party.

**Article 12. Damage or Destruction**

Except as provided herein, this Lease shall automatically terminate if the Premises are totally destroyed. If the Premises are damaged by any casualty and, in Landlord's reasonable opinion, the Premises (exclusive of any alterations other than the Leasehold Improvements made to the Premises by or on behalf of Tenant) can be restored to its preexisting condition within two hundred forty (240) days after the date of the damage or destruction, Landlord shall, except as provided below, promptly and with due diligence repair any damage to the Premises (exclusive of any alterations to the Premises made by or on behalf of Tenant, which shall be promptly repaired by Tenant at its sole expense) and, until such repairs are completed, the monthly rent payable hereunder shall be abated from the date of damage or destruction in the same proportion that the rentable area of the portion of the Premises which is unusable by Tenant in the conduct of its business bears to the total rentable area of the Premises. If (i) the repairs are estimated to take more than two hundred forty (240) days to complete, or (ii) Landlord does not so elect to make the repairs, then either Landlord or Tenant shall have the right, by written notice given to the other within thirty (30) days after the date of casualty or the date that Landlord provides written notice to Tenant of its intent to not make the repairs as the case may be, to terminate this Lease as of the date of the damage or destruction. Notwithstanding anything to the contrary herein, Landlord shall have no obligation to repair the Premises if: (a) the Building is so damaged as to require repairs to the Building exceeding twenty percent (20%) of the full insurable value of the Building; or (b) Landlord elects to demolish the Building; or (c) the damage or destruction occurs during the last year of the Lease Term, exclusive of option periods, and Landlord reasonably estimates that it will take more than two (2) months to repair such damage; or (d) Landlord does not receive sufficient insurance proceeds to complete the repairs, in which case this Lease shall be deemed terminated as of the date of casualty. Further, Tenant's monthly rent payable hereunder shall not be abated if either (i) the damage or destruction is repaired within ten (10) business days after Landlord receives written notice from Tenant of the casualty, or (ii) Tenant, or any officers, partners, employees, agents or invitees of Tenant, or any assignee or subtenant of Tenant, is primarily responsible for the damage or destruction.

**Article 13. Condemnation**

If the whole or any material part of the Property or the Premises shall be taken in condemnation, or transferred by agreement in lieu of condemnation, which in Tenant's reasonable judgment, materially and adversely affects Tenant's Permitted Use of the Premises, or in Landlord's reasonable judgment, materially interferes with or impairs its ownership or operation of the Property, then either Tenant or Landlord may terminate this Lease by serving the other party with written notice of same, effective as of the taking date. If neither Tenant nor Landlord elects to terminate this Lease as aforesaid, then this Lease shall terminate on the taking date only as to that portion of the Premises so taken, and the Rent and other charges payable by Tenant shall be reduced proportionally. In the event of any Condemnation, the entire award for such taking shall belong to Landlord. Tenant shall have no claim against Landlord or the award for the value of any unexpired term of this Lease or otherwise. Tenant shall be entitled to independently pursue a separate award in a separate proceeding for Tenant's relocation costs directly associated with the taking, provided such separate award does not diminish Landlord's award. No temporary taking of the Premises shall terminate this Lease or entitle Tenant to any abatement of the rent payable to Landlord under this Lease. Notwithstanding the aforesaid, if any condemnation only takes a portion of the parking area, this Lease shall continue in full force and effect without modification so long as use and enjoyment of the parking area by Tenant, its employees and invitees is not materially impaired.

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**Article 14. Relocation. [Intentionally Omitted.]**

**Article 15. Assignment; Subletting**

15.01 <u>Assignment and Subletting</u>. Tenant shall not, either voluntarily or by operation of law, assign, encumber, or otherwise transfer this Lease or any interest herein, or sublet the Premises or any part thereof, or permit the Premises to be occupied by anyone other than Tenant, without the prior written consent of Landlord. Landlord, in Landlord's sole and absolute discretion, shall have the right to deny its consent to any proposed assignment or subletting. Any assignment, subletting or other action in violation of the foregoing shall be void and, at Landlord's option, shall constitute a material breach of this Lease. For purposes of this Article 15, an assignment shall include any transfer of any interest in this Lease, the Premises, or Tenant pursuant to a merger, division, consolidation or liquidation, or pursuant to a change in ownership of Tenant involving a transfer of voting control in Tenant (whether by transfer of partnership interests, corporate stock or otherwise). In the event of an assignment or subletting, Landlord may collect rent from the assignee or the subtenant without waiving any rights hereunder and collection of the rent from a person other than Tenant shall not be deemed a waiver of any of Landlord's rights, an acceptance of assignee or subtenant as Tenant, or a release of Tenant from the performance of Tenant's obligations under this Lease. No assignment or subletting shall release Tenant or change Tenant's primary liability to pay the Rent and to perform all other obligations of Tenant under this Lease. Notwithstanding the foregoing provisions to the contrary, Tenant may assign this Lease with Landlord's prior written consent, which consent will not be unreasonably withheld, conditioned, or delayed to an entity (a) controlling, controlled by or under common control with Tenant, or (b) that is Tenant's successor through merger, reorganization, or consolidation, or (c) that acquires substantially all of the stock or assets of Tenant, provided the net worth of such entity immediately following the assignment is not less than the net worth of Tenant on the Commencement Date or immediately prior to the assignment, whichever is greater, and in Landlord's reasonable opinion, such entity will not be inconsistent with the dignity, character, and standards of the Building and its other tenants.

15.02 <u>Excess Rent/Consideration</u>. In the event that the Rent due and payable by a sublessee or assignee (or a combination of the rental payable under such sublease or assignment, plus any bonus or other consideration therefor or incident thereto), exceeds the Rent payable under this Lease, then Tenant, after the recovery of all reasonable expenses associated with the sublease or assignment, including tenant improvement costs, architectural fees, commissions, and any other reasonable concessions provided, shall be bound and obligated to pay Landlord, as Additional Rent hereunder, all of such excess Rent and other excess consideration within ten (10) days following receipt thereof by Tenant.

**Article 16. Defaults; Remedies**

16.01 <u>Events of Default</u>. The occurrence of any of the following shall constitute a material default and breach of this Lease by Tenant: (a) the failure of Tenant to pay Base Rent as and when due, or to make any other Rent or other payment required to be made by Tenant hereunder as and when due; (b) Tenant fails to comply with or observe any other provision of this Lease and such failure continues for fifteen (15) days after written notice to Tenant or such lesser period of time as otherwise expressly provided in the Lease; provided, however, that if the nature of Tenant's obligation is such that more than fifteen (15) days are required for its performance, Tenant shall not be in default if Tenant commences and diligently pursues to cure such default within the fifteen (15) day period and thereafter diligently prosecutes the same to completion, provided that no such cure shall extend beyond sixty (60) days; (c) the making by Tenant of any general assignment for the benefit of creditors or the filing by or against Tenant of a petition under any federal or state bankruptcy or insolvency laws; (d) Tenant fails to comply with the Tenant's Permitted Use provisions of this Lease; (e) Tenant fails to discharge any lien placed upon the Premises in violation of this Lease within thirty (30) days after any such lien or encumbrance is filed against the Premises; or (f) Tenant fails to execute and return to Landlord an estoppel certificate within ten (10) days following Landlord's written request therefor.

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16.02 <u>Landlord</u><u>'</u><u>s Right to Terminate Upon Default</u>. In the event of any default by Tenant under this Lease, Landlord shall have the right, without notice or demand to Tenant, to terminate this Lease, in which event Landlord shall be entitled to receive from Tenant on demand, as and for liquidated and agreed final damages for Tenant's default, an amount equal to: (a) all Rent and other sums or charges then due or owed under this Lease; <u>plus</u> (b) all of Landlord's actual or reasonably estimated expenses in connection with reletting the Premises, including, without limitation, all repossession costs, brokerage and management commissions, operating expenses, legal expenses, attorneys' fees, alteration costs, and expenses of preparation for such reletting; plus (c) the then present value of Rent and other sums or charges that would be due or owed under this Lease from the day of such termination or repossession for what would be the then unexpired Lease Term if the same had remained in effect, said present value to be arrived at on the basis of a discount of four percent (4%) per annum.

16.03 <u>Right of Landlord to Perform</u>. All covenants and agreements to be performed by Tenant under this Lease shall be performed by Tenant at Tenant's sole cost and expense. If Tenant shall fail to pay any sum of money, other than Rent payable hereunder, required to be paid by it hereunder after the expiration of any notice period with respect thereto, or shall fail to perform any other act on its part to be performed hereunder within thirty (30) days after written notice from Landlord (except in case of emergency), Landlord may, but shall not be obligated to, make any payment or perform any such other act on Tenant's part to be made or performed, without waiving or releasing Tenant of its obligations under this Lease. The cost of any work or act performed by Landlord plus a ten percent (10%) overhead charge shall be charged to Tenant as rent and shall become immediately due and payable by Tenant, upon written notice from Landlord.

16.04 <u>Non-Waiver</u>. The failure by either party hereto to enforce or take action in response to any default by the other party shall not be deemed to be a waiver thereof. No waiver shall limit either party's rights under this Lease with regard to any subsequent or continuing default. Nothing herein shall be deemed to affect either party's rights to indemnification under this Lease for personal injury or property damages under the indemnification clauses contained in this Lease. No acceptance by Landlord of a lesser sum than the Rent then due under this Lease shall be deemed to be other than on account of the earliest installment of such amount due, nor shall any endorsement or statement on any check or any letter accompanying any check or payment be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to recover the balance of such installment or pursue any other remedy under this Lease. The delivery of keys to Landlord, or any employee, property manager, agent, or representation thereof, shall not operate as a termination of this Lease or a surrender of the Premises. The specific remedies to which Landlord may resort under the terms of the Lease are cumulative and are not intended to be exclusive of any other remedies or means of redress to which it may be lawfully entitled in case of any breach or threatened breach by Tenant of any provisions of this Lease.

16.05 <u>Landlord Default</u>. Landlord shall not be in default of any obligation of Landlord hereunder unless Landlord fails to perform such obligations within thirty (30) days after receipt of written notice of such failure from Tenant; provided, however, that if the nature of Landlord's obligation is such that more than thirty (30) days are required for its performance, Landlord shall not be in default if Landlord commences to cure such default within the thirty (30) day period and thereafter diligently prosecutes the same to completion. All obligations of Landlord hereunder shall be construed as covenants, not conditions; and, except as may be otherwise expressly provided in this Lease, Tenant may not terminate this Lease for breach of Landlord's obligations hereunder. Any liability of Landlord shall be limited solely to Landlord's interest in the Property, and in no event shall any personal liability be asserted against any or all of Landlord Parties in connection with this Lease nor shall any recourse be had to any other property or assets of any or all of Landlord Parties.

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16.06 <u>Tenant</u><u>'</u><u>s Remedies</u>. Tenant's sole and exclusive remedy for a default or breach of this Lease by Landlord shall be either (i) an action for damages, or (ii) an action for injunctive relief; Tenant hereby waiving and agreeing that Tenant shall have no other remedies on account of any breach or default by Landlord under this Lease including, without limitation, any offset rights. Under no circumstances whatsoever shall Landlord ever be liable for punitive, consequential or special damages under this Lease; and Tenant waives any rights it may have to such damages under this Lease in the event of a breach or default by Landlord under this Lease.

**Article 17. Subordination, Non-Disturbance, and Attornment; Estoppel Certificates**

17.01 <u>Subordination, Non-Disturbance, and Attornment</u>. This Lease is subject and subordinated to any mortgages, deeds of trust, "ground" leases and any extensions or modifications thereto entered into by Landlord or an affiliate or predecessor-in-interest (hereinafter collectively referred to as "Mortgages"), provided that so long as Tenant is not in default under the terms of this Lease beyond any applicable cure period, Tenant's rights under this Lease shall not be disturbed. In the event Landlord exercises its option to further subordinate this Lease, such subordination shall be self-executing, but Tenant shall, at the written request of Landlord, execute such further assurances, including a subordination, non-disturbance and attornment agreement (an "SNDA"), as Landlord reasonably deems desirable to confirm such subordination, provided in all events that Tenant's non-disturbance rights as provided in the first sentence above shall be maintained. In the event Tenant fails or refuses to execute any instrument required under this Section, within ten (10) days after Landlord's request, Landlord shall be granted a limited power of attorney to execute any instrument consistent with the provisions of this Article 17.01 in the name of Tenant. In the event any existing or future lender holding a mortgage, deed of trust or other commercial paper reasonably requires a modification of this Lease which does not increase Tenant's Rent hereunder or does not materially adversely change any obligation of Tenant hereunder, Tenant agrees to execute appropriate instruments to reflect such modification, upon request by Landlord. So long as Tenant is not in default under this Lease, this Lease shall remain in full force and effect and Tenant's possession hereunder shall not be disturbed.

17.02 <u>Estoppel Certificates</u>. Tenant agrees at any time and from time to time within ten (10) days following Landlord's written request, to execute, acknowledge and deliver to Landlord, or any party designated by Landlord, a statement in writing addressed and certifying to Landlord, or any party designated by Landlord, that this Lease: is unmodified (or specifies any modifications) and in full force and effect; that Tenant has accepted possession of the Premises, which are acceptable in all respects; that no Rent has been paid more than thirty (30) days in advance; that Tenant has no charge, lien or claim of setoff under this Lease or otherwise against the Rent due or to become due under this Lease; that Landlord is not in default in performance of any covenant, agreement or condition contained in this Lease (or specifying, with reasonable particularity, any alleged default by Landlord); and any other information reasonably requested by Landlord. Any such statement delivered pursuant to this Section 17.02 may be relied upon by Landlord, any existing or prospective mortgagee, any prospective purchaser of the Building, or any party designated by Landlord. As requested, Tenant shall provide Landlord with current operating and financial statements and reports relating to Tenant's business.

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**Article 18. Holdover Tenancy**

If Tenant holds possession of the Premises after the expiration or termination of the Lease Term, by lapse of time or otherwise, Tenant shall become a tenant at sufferance, upon all of the terms contained herein, except as to Base Rent. During such holdover period, Tenant shall pay to Landlord a monthly rent equivalent to: (a) one hundred fifty percent (150%) of the Base Rent payable by Tenant to Landlord with respect to the last month of the Lease Term; plus (b) all Additional Rent and other amounts payable under this Lease. The monthly rent payable for such holdover period shall in no event be construed as a penalty or as liquidated damages for such retention of possession. Without limiting the foregoing, Tenant hereby agrees to indemnify, defend and hold harmless Landlord, and its agents, contractors and employees, from and against any and all claims, liabilities, actions, losses, damages (including without limitation, direct, indirect, incidental and consequential) and expenses (including, without limitation, court costs and reasonable attorneys' fees) asserted against or sustained by any such party and arising from or by reason of such retention of possession, which obligations shall survive the expiration or termination of the Lease Term.

**Article 19. Signs**

Tenant shall not place or permit any signs, lights, awnings or poles in or about the Premises or the Property without the prior written consent of Landlord. Tenant shall not, without the prior written consent of Landlord, install or affix any window coverings, blinds, draperies, window or door lettering or advertising media of any type in or about the Premises. Any signs or window coverings permitted by Landlord shall be paid for by Tenant, shall comply with all signage criteria, if any, set forth by Landlord and shall be subject to all applicable governmental laws, ordinances, regulations and other requirements. Tenant shall remove any permitted signs and window coverings upon the expiration or earlier termination of this Lease. Any such installations and removals shall be made in such manner as to avoid injury or defacement of the Building and Tenant shall repair any such injury or defacement, including, without limitation, discoloration, caused by such installation and/or removal.

**Article 20. Parking**

Tenant shall be entitled to park in common with other tenants of the Property in those areas designated for nonreserved parking. Tenant shall be responsible for all vehicles owned, rented or used by Tenant and/or its affiliates, parents, subsidiaries, and their respective trustees, directors, shareholders, partners, members, managers, venturers, officers, employees, agents, invitees, assignees, sublessees, contractors, or representatives in or about the Property. Tenant shall not park its trucks in the dock area longer than the time it takes to reasonably load or unload its trucks. In no event shall Tenant park any vehicle in or about a loading dock which exclusively services another tenant in, on, or about the Property, or in a thoroughfare, driveway, street, or other area not specifically designated for parking. Upon request by Landlord, Tenant shall move its trucks and vehicles if, in Landlord's reasonable opinion, said vehicles are in violation of any of the above restrictions.

**Article 21. Notices**

All notices, consents, demands, and requests which may be or are required to be given by either party to the other, shall be in writing, and sent by United States registered or certified mail, with return receipt requested, addressed to Landlord and/or Tenant to the addresses set forth in Article 1 hereof. The date which said registered or certified mail is mailed shall be conclusively deemed to be the date on which a notice, consent, demand, or request is given or made. The above address of a party may be changed at any time with not less than ten (10) days prior notice given by said party to the other party in the manner hereinabove provided.

**Article 22. Brokers**

Neither Landlord nor Tenant has dealt with any broker or agent in connection with the negotiation or execution of this Lease except for Dave Stalsberg of Kraus-Anderson Realty Company, as agent for Tenant, and Eric Rossbach of Colliers International, as agent for Landlord, each of whom shall be paid a commission by Landlord pursuant to a separate written agreement. Tenant and Landlord shall indemnify, defend and hold each other harmless from and against all costs, expenses, attorneys' fees, liens and other liability for commissions or other compensation claimed by any other broker or agent claiming the same by, through or under Tenant or Landlord. The foregoing indemnity shall survive the expiration or earlier termination of the Lease.

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**Article 23. Miscellaneous**

23.01 <u>Entire Agreement</u>. This Lease contains all of the agreements and understandings relating to the leasing of the Premises and the obligations of Landlord and Tenant in connection with such leasing. Landlord has not made, and Tenant is not relying upon, any warranties, or representations, promises or statements made by Landlord or any agent of Landlord, except as expressly set forth herein. This Lease supersedes any and all prior agreements and understandings between Landlord and Tenant and alone expresses the agreement of the parties. This Lease shall not be amended, changed or modified in any way unless in writing executed and delivered by both Landlord and Tenant. In the event any provision of this Lease is found to be unenforceable, the remainder of this Lease shall not be affected, and any provision found to be invalid shall be enforceable to the extent permitted by law. This Lease does not create any relationship between Landlord and Tenant other than that of lessor and lessee.

23.02 <u>Successors</u>. Except as expressly provided herein, this Lease and the obligations of Landlord and Tenant contained herein shall bind and benefit the successors and assigns of the parties hereto. Notwithstanding the foregoing, Landlord and each successor to Landlord shall be fully released from the performance of Landlord's obligations subsequent to its transfer of Landlord's interest in the Building and the assumption of Landlord's responsibilities hereunder by the transferee.

23.03 <u>Force Majeure</u>. Landlord shall incur no liability to Tenant with respect to, and shall not be responsible for, any failure to perform any of Landlord's obligations hereunder if such failure is caused by any reason beyond the reasonable control of Landlord. Tenant shall incur no liability to Landlord with respect to, and shall not be responsible for, any failure to perform any of Tenant's obligations hereunder (other than payment of Rent or other payments due hereunder) if such failure is caused by any reason beyond the reasonable control of Tenant.

23.04 <u>Survival of Obligations</u>. Any obligations of each party hereto accruing prior to the expiration of this Lease shall survive the termination of this Lease, and the party obligated therefor shall promptly perform all such obligations whether or not this Lease has expired.

23.05 <u>Landlord Entry</u>. Landlord may enter the Premises at all reasonable times upon reasonable prior notice (except in case of emergency) to: inspect the same; exhibit the same to prospective purchasers, lenders or tenants; determine whether Tenant is complying with all of its obligations under this Lease; supply services to be provided by Landlord to Tenant under this Lease; and make repairs or improvements in or to the Building or the Premises.

23.06 <u>Quiet Enjoyment</u>. Provided that Tenant is not in default beyond any applicable cure period, Tenant shall have and peaceably enjoy the Premises during the Lease Term, subject to all of the terms and conditions contained in this Lease.

23.07 <u>Governing Law</u>. This Lease shall be governed by, and construed in accordance with, the laws of the State of Minnesota.

23.08 <u>Captions</u>. All captions, headings, titles, and numerical references are for convenience only and shall have no effect on the interpretation of this Lease. All terms and words used in this Lease, regardless of the number or gender in which they are used, shall be deemed to include the appropriate number and gender, as the context may require.

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23.09 <u>Time is of the Essence</u>. Time is of the essence of under this Lease and for the performance of all obligations hereunder.

23.10 <u>Joint and Several Liability</u>. If Tenant comprises more than one person or entity, or if this Lease is guaranteed by any party, all such persons shall be jointly and severally liable for payment of rents and the performance of Tenant's obligations hereunder.

23.11 <u>Corporate Authority</u>. Tenant hereby covenants and warrants that Tenant is a duly authorized and existing entity, that Tenant has and is qualified to do business in the state in which the Property is located, that the Tenant has full right and authority to enter into this Lease pursuant to the terms of its formation and that each person signing on behalf of Tenant is authorized to do so. Tenant shall provide Landlord on demand with such evidence of such authority as Landlord shall reasonably request, including, without limitation, resolutions, certificates, and opinions of counsel. Landlord hereby covenants and warrants that Landlord is a duly authorized and existing entity, that Landlord has and is qualified to do business in the state in which the Property is located, that the Landlord has full right and authority to enter into this Lease pursuant to the terms of its formation, and that each person signing on behalf of Landlord is authorized to do so.

23.12 <u>Counterparts</u>. This Lease may be executed in one or more counterparts, each of which will constitute an original, and all of which together shall constitute one and the same agreement. Executed copies hereof may be delivered by e-mail or facsimile and, upon receipt, shall be deemed originals and binding upon the parties hereto. Without limiting or otherwise affecting the validity of executed copies hereof that have been delivered by e-mail or facsimile, the parties will use best efforts to deliver originals as promptly as possible after execution.

**Article 24. Tenant Improvements**

Improvements to the Premises ("Leasehold Improvements") shall be governed by **<u>Exhibit D</u>** attached hereto and incorporated herein by reference. In addition to the Leasehold Improvements, Landlord agrees to, at Tenant's request, perform additional HVAC distribution work, up to $4,000.00 of which will be amortized over the Lease Term at zero percent interest and memorialized as an amendment to this Lease. Tenant shall be directly responsible for all, if any, amounts over $4,000.00 when due. Landlord and Tenant originally agreed that, as part of the Leasehold Improvements, Landlord would be responsible for the electrical improvements on the June 8, 2018 electrical bid by Bob Noeldner for [\*\*\*]. Tenant requested an expansion of the electrical work and Landlord will currently be proceeding with the an expanded proposal dated June 19, 2018 by City View Electric totaling [\*\*\*], provided, however, that Tenant shall be directly responsible for and pay when due the cost of any electrical work done to the Premises in excess of the original June 8, 2018 electrical bid of [\*\*\*]. The charge to tenant for additional electrical work is [\*\*\*], unless the bid is increased based on additional work added by Tenant.

**Article 25. MR Chillers**

Landlord hereby grants to Tenant the right to install "MR Chillers" on the roof above the Premises or on grade behind the Premises. All work on or relating to the MR Chillers shall be done only by Landlord's contractor or a contractor approved by Landlord. If the MR Chillers are installed behind the Premises, they are to be located on a concrete pad no larger than five feet by eight feet in size and protected by bollards in the location indicated on **<u>Exhibit E</u>**. No such work will be permitted if it would void or reduce any warranty on the roof. Tenant will be required to supplement existing construction to achieve any assembly ratings, thermal values, or additional criteria as required by the installation of the MR Chillers. Tenant agrees to indemnify, defend and hold Landlord harmless against any loss, liability, or damage caused by or caused to the MR Chillers. The foregoing indemnity shall survive the expiration or earlier termination of this Lease. Tenant shall only have roof access to the MR Chillers during normal business hours. Upon the expiration or earlier termination of the Lease Term, Tenant must remove the MR Chillers and restore the area on which the MR Chillers were installed to its pre-installation condition to the reasonable acceptance of Landlord.

*[Signature Page Follows.]*

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**IN AGREEMENT**, the parties hereto have executed this Lease as of the date first above written.

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| | |
|:---|:---|
| **LANDLORD**:<br>MSP Industrial Portfolio Owner, LLC,<br> A Delaware limited liability company<br>By:*<u>/s/ Jason Simek</u>* <br> Its: Managing Partner | **TENANT**:<br>lmricor Medical Systems, Inc.,<br> a Delaware corporation<br>By:*<u>/s/ Steve Wedan</u>*<br> Its: Chief Executive Officer |

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**<u>Exhibit A</u>**

**Premise**

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**<u>Exhibit B</u>**

**Move-Out Conditions**

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**<u>Exhibit C</u>**

**Rules and Regulations**

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**<u>Exhibit D</u>**

**Leasehold Improvements**

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**<u>Exhibit D-1</u>**

**Plan**

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**<u>EXHIBIT D-2</u>**

**Electrical Proposal**

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**<u>Exhibit E</u>**

**Permitted Placement of MR Chiller Behind Premises**

## Exhibit 10.10

**Exhibit 10.10**

**[PORTIONS HEREIN IDENTIFIED BY [\*\*\*] HAVE BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE THE EXCLUDED INFORMATION IS BOTH (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED.]**

**FIRST AMENDMENT TO LEASE**

This FIRST AMENDMENT TO LEASE ("Amendment") is dated this 21st day of February, 2020, by and between MSP Industrial Portfolio Owner, LLC, a Delaware limited liability company ("Landlord"), and Imricor Medical Systems, Inc., a Delaware corporation ("Tenant").

A. Landlord and Tenant are parties to that certain Office/Warehouse Lease Agreement dated August 2018 ("Lease"), for the lease by Tenant of Suite 12261 A in that certain Building located at 12255-12287 Nicollet Avenue South, Burnsville, Minnesota 55337, consisting of approximately 4,592 rentable square feet, as more particularly described in the Lease ("Current Premises").

B. Landlord and Tenant desire to amend the Lease to extend the term of the Lease and to provide for an expansion of the Current Premises upon the terms and conditions set forth herein, and to make certain other specific modifications to the Lease, upon the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. <u>Capitalized Terms</u>. All capitalized terms in this Amendment have the same meaning defined in the Lease, except where expressly defined to the contrary in this Amendment.

2. <u>Confirmation</u>. Tenant acknowledges and agrees that: (a) Tenant is in sole possession of the Current Premises demised under the Lease; (b) all work, improvements and furnishings required by Landlord under the Lease for the Current Premises have been completed and accepted by Tenant except for the improvements required to be made to the Premises by Landlord as set forth herein; (c) to Tenant's knowledge, Tenant has no offset, claim, recoupment, or defense against the payment of rent or other sums and the performance of all obligations of Tenant under the Lease; (d) the Lease is binding on Tenant and is in full force and effect, and to Tenant's knowledge, Tenant has no defenses to the enforcement of the Lease; (e) Tenant has not assigned the Lease, or sublet the Current Premises; and (t) to Tenant's knowledge, neither Tenant nor Landlord is in default of the Lease.

3. <u>Expansion of Premises</u>. Commencing upon substantial completion of the Leasehold Improvements, as defined on **<u>Exhibit</u>** C attached hereto ("Expansion Date"), Landlord leases to Tenant and Tenant takes from Landlord the addition of approximately 9,602 rentable square feet of space, which is crosshatched on **<u>Exhibit A</u>** attached hereto ("Expansion Premises"). From and after the Expansion Date, the total leased space shall consist of both the Current Premises and the Expansion Premises as depicted on **<u>Exhibit B</u>** attached hereto, which totals approximately 14,194 rentable square feet. Commencing as of the Expansion Date, the Current Premises and the Expansion Premises shall be referred to as the "Premises" for all purposes under the Lease and this Amendment, subject to the terms hereof.

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4. <u>Term</u>. The Term of the Lease for the Premises will be extended upon the Expansion Date for one hundred twenty (120) consecutive months after the Expansion Date ("Extension Term"). Within ten (10) days after written demand, Tenant will execute a supplement to this Amendment setting forth the actual Expansion Date, Extension Term, and any other information reasonably requested by Landlord.

5. <u>Rent</u>. The monthly Base Rent for the Current Premises before the Expansion Date shall be paid in accordance with the Lease. The monthly Base Rent for the Premises after the Expansion Date shall be paid in accordance with the Lease in the following amounts:

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| | | |
|:---|:---|:---|
| **<u>Months</u>** | **<u>Rate (PSF)</u>** | **<u>Monthly Base Rent</u>** |
| Expansion Date-Month 12 | [\*\*\*] | [\*\*\*] |
| 13-24 | [\*\*\*] | [\*\*\*] |
| 25-36 | [\*\*\*] | [\*\*\*] |
| 37-48 | [\*\*\*] | [\*\*\*] |
| 49-60 | [\*\*\*] | [\*\*\*] |
| 61-72 | [\*\*\*] | [\*\*\*] |
| 73-84 | [\*\*\*] | [\*\*\*] |
| 85-96 | [\*\*\*] | [\*\*\*] |
| 97-108 | [\*\*\*] | [\*\*\*] |
| 109-120 | [\*\*\*] | [\*\*\*] |

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6. <u>Condition of Premises</u>. Tenant accepts the Current Premises and Expansion Premises in its as-is condition as of the Expansion Date, and Landlord will have no obligation to make or pay for any alterations, additions, improvement, or renovations in or to the Current Premises or Expansion Premises to prepare it for Tenant's occupancy during the Extension Term, except to perform the Leasehold Improvements as detailed, described, and depicted on **<u>Exhibit C</u>**.

7. <u>Tenant'</u><u>s Percentage Share</u>. During such period that the definition of Premises includes both the Current Premises and Expansion Premises, Tenant's Percentage Share set forth in the Lease shall be adjusted to 17.67%. Landlord and Tenant agree that the total square footage of the Building is 80,309 square feet and this measurement takes precedence over all prior measurements.

8. <u>Insurance</u>. Prior to Tenant taking possession of the Expansion Premises, Tenant shall provide to Landlord evidence reasonably satisfactory to Landlord that Tenant's insurance, as required in the Lease, shall be in effect and include the Expansion Premises as of the time of possession.

9. <u>Security Deposit</u>. As a condition of this Amendment, Landlord hereby requires that Tenant, concurrently with execution of this Amendment, increase its existing Security Deposit, which is currently [\*\*\*], by the sum of [\*\*\*], so that as of the date of this Amendment, Tenant shall have deposited with Landlord a Security Deposit in the total amount of [\*\*\*], to be held by Landlord in accordance with the Lease.

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10. <u>Real Estate Brokers</u>. Notwithstanding anything to the contrary contained in the Lease, Landlord and Tenant each represents and warrants to the other party that it has not authorized or employed, or acted by implication to authorize or employ, any real estate broker or salesman to act for it in connection with this Amendment, except for Peter Mork and Jason Simek, of Capital Partners Management, LLC, on behalf of Landlord, and Dave Stalsburg, of Kraus-Anderson Realty, on behalf of Tenant, all of whom shall be paid a commission by Landlord pursuant to a separate written agreement. Landlord and Tenant each indemnify, defend, and hold the other party harmless from and against any and all claims by any other real estate broker or salesman whom the indemnifying party authorized or employed, or acted by implication to authorize or employ, to act for the indemnifying party in connection with this Amendment.

11. <u>Landlord'</u><u>s Notice Address</u>. Effective immediately, Landlord's notice address under the Lease is hereby amended and restated as follows: MSP Industrial Portfolio Owner, LLC, c/o Capital Partners Management, LLC, 5201 Eden Avenue, Suite 50, Edina, Minnesota 55436.

12. <u>Option Rights</u>. All option rights, if any, contained in the Lease, including, without limitation, options to extend or renew the term of the Lease or to expand the Premises, are hereby deleted and are of no force and effect.

13. <u>Further Assurances</u>. Landlord and Tenant each agree to execute any and all documents and agreements reasonably requested by the other party to further evidence or effectuate this Amendment.

14. <u>Successors and Assigns</u>. This Amendment is binding upon and inures to the benefit of the parties and their successors and assigns.

15. <u>Reaffirmation</u>. Except as modified herein, all other terms and conditions of the Lease remain in full force and effect, and nothing herein may be construed to relieve either Landlord or Tenant of any obligations as set forth therein.

16. <u>Conflicts</u>. In case of any conflict between any term or provision of this Amendment and the Lease, the term or provision of this Amendment will govern.

17. <u>Counterparts</u>. This Amendment may be executed in one or more counterparts, each of which is deemed an original, but all of which when taken together will constitute one agreement.

18. <u>.pdf Signatures</u>. In order to expedite this transaction, signatures sent by .pdf via e-mail may be used in place of original signatures on this Amendment or any other document or agreement in this transaction, other than those to be recorded in the public records. Landlord and Tenant intend to be bound by the signatures on each .pdf document, are aware that the other party will rely on the .pdf signatures, and hereby waive any defenses to the enforcement of the terms of this Amendment or any related document based on the form of signature. In the event .pdf signatures are used in any instance, ink-signed originals of those documents must also be promptly exchanged by the parties, but the failure to subsequently deliver those originals will not affect the enforceability of the .pdf signatures.

19. <u>Construction</u>. This Amendment shall be construed under the laws of the State of Minnesota. Whenever possible, each provision of this Amendment shall be interpreted in a manner that would render it effective and valid under applicable law. If any provision of this Amendment is determined to be invalid or unenforceable, that provision will be ineffective only to the extent of the prohibition or invalidity without invalidating or otherwise affecting the remaining provisions of this Amendment.

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20. <u>Corporate Authority</u>. The undersigned officers and representatives signing this Amendment on behalf of Landlord and Tenant represent and warrant that they have the authority to execute this Amendment on behalf of the business entity and that the same will be binding upon the business entity.

21. <u>Entire Agreement</u>. The Lease, this Amendment, and any exhibits attached hereto, constitute the entire understanding of the parties with respect to this transaction, and supersede all prior agreements and understandings between the parties with respect to the subject matter. No representations, warranties, undertakings or promises, whether oral, implied, written, or otherwise, have been made by any party to any other party unless expressly stated in the above-referenced documents, or unless mutually agreed to in writing between the parties after the date hereof, and neither party has relied upon any verbal representations, agreements, or understandings not expressly set forth herein.

22. <u>Effectiveness</u>. The parties agree that the submission of a draft or copy of this Amendment for review or signature by a party is not intended, nor will it constitute or be deemed, by either party to be an offer to enter into a legally binding agreement with respect to the subject matter hereof and may not be relied on for any legal or equitable rights or obligations. Any draft or document submitted by Landlord or its agents to Tenant will not constitute a reservation of or option or offer in favor of Tenant. The parties will be legally bound with respect to the subject matter hereof pursuant to the terms of this Amendment only if, as and when all the parties have executed and delivered this Amendment to each other. Before the complete execution and delivery of this Amendment by all parties, each party will be free to negotiate the form and terms of this Amendment in a manner acceptable to that party in its sole and absolute discretion. The parties acknowledge and agree that the execution and delivery by one party before the execution and delivery of this Amendment by the other party will be of no force and effect and will in no way prejudice the party that executed this Amendment or the party that has not executed this Amendment.

*[Signature Page Follows]*

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IN AGREEMENT, the parties have executed this Amendment as of the day and year first written above.

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| | |
|:---|:---|
| LANDLORD: | LANDLORD: |
| MSP Industrial Portfolio Owner, LLC, | MSP Industrial Portfolio Owner, LLC, |
| a Delaware limited liability company | a Delaware limited liability company |
| By: | */s/ Jason Simek* |
| Name: | Jason Simek |
| Title: | Partner |

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| | |
|:---|:---|
| TENANT: | TENANT: |
| Imricor Medical Systems, Inc., | Imricor Medical Systems, Inc., |
| a Delaware corporation | a Delaware corporation |
| By: | */s/ Steve Wedan* |
| Name: | Steve Wedan |
| Title: | Chief Executive Officer |

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**<u>EXHIBIT A</u>**

**<u>Expansion Premises</u>**

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**<u>EXHIBIT B</u>**

**<u>Current Premises and Expansion Premises</u>**

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**<u>EXHIBIT C</u>**

**<u>Leasehold Improvements</u>**

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**<u>EXHIBIT C-1</u>**

## Exhibit 10.11

**Exhibit 10.11**

**SECOND AMENDMENT TO LEASE**

THIS SECOND AMENDMENT TO LEASE ("Amendment") is dated this 19th day of May 2020, by and between MSP Industrial Portfolio Owner, LLC, a Delaware limited liability company ("Landlord"), and Imricor Medical Systems, Inc., a Delaware corporation ("Tenant").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Landlord and Tenant are parties to that certain Office/Warehouse Lease Agreement dated August 2018 ("Original Lease"), as amended by that certain First Amendment to Lease dated February 21, 2020 ("First Amendment") (the Original Lease and First Amendment are hereinafter collectively referred to as the "Lease"), for the lease by Tenant of space in a Building located at 12255-12287 Nicollet Avenue South, Burnsville, Minnesota 55337, consisting of approximately 14,194 rentable square feet, as more particularly described in the Lease ("Premises").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Landlord and Tenant desire to amend the Lease to clarify the correct the square footage of the Premises, and to make certain other specific modifications to the Lease, upon the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants hereinafter contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. <u>Capitalized Terms</u>. All capitalized terms in this Amendment have the same meaning defined in the Lease, except where expressly defined to the contrary in this Amendment.

2. <u>Confirmation.</u> Tenant acknowledges and agrees that: (a) Tenant is in sole possession of the Premises demised under the Lease; (b) Tenant has no offset, claim, recoupment, or defense against the payment of rent or other sums and the performance of all obligations of Tenant under the Lease; (c) the Lease is binding on Tenant and is in full force and effect, and Tenant has no defenses to the enforcement of the Lease; (d) Tenant has not assigned the Lease, or sublet the Premises; and (e) Tenant acknowledges that Landlord is not in default of the Lease.

3. <u>Square Footage of the Premises.</u> The actual square footage of the Premises is 14,617 rentable square feet pursuant to the Site Plan prepared by Tushie Montgomery Architects attached hereto as **<u>Exhibit A</u>**.

4. <u>Rent.</u> Landlord and Tenant agree that the Base Rent shall be calculated using 14,194 rentable square feet. The monthly Base Rent for the Premises after the Expansion Date shall be paid in accordance with the Lease in the following amounts:

---

| | | |
|:---|:---|:---|
| **<u>Months</u>** | **<u>Rate (PSF)</u>**<br>| **<u>Monthly Base Rent</u>** |
| Expansion Date-Month 12 | $9.75 | $11532.63 |
| 13-24 | $10.04 | $11875.65 |
| 25-36 | $10.34 | $12230.50 |
| 37-48 | $10.65 | $12597.18 |
| 49-60 | $10.97 | $12975.68 |
| 61-72 | $11.30 | $13366.02 |
| 73-84 | $11.64 | $13768.18 |
| 85-96 | $11.99 | $14182.17 |
| 97-108 | $12.35 | $14607.99 |
| 109-120 | $12.72 | $15045.64 |

---

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5. <u>Tenant'</u><u>s Percentage</u> Share. During such period that the definition of Premises includes both the Current Premises and Expansion Premises, Tenant's Percentage Share set forth in the Lease shall be adjusted to 18.20%, taking into consideration the Premises has a total of 14,617 rentable square feet. Landlord and Tenant agree that the total square footage of the Building is 80,309 square feet and this measurement takes precedence over all prior measurements.

6. <u>Real Estate Brokers</u>. Notwithstanding anything to the contrary contained in the Lease, Landlord and Tenant each represents and warrants to the other party that it has not authorized or employed, or acted by implication to authorize or employ, any real estate broker or salesperson to act for it in connection with this Amendment. Landlord and Tenant each indemnify, defend, and hold the other party harmless from and against any and all claims by any other real estate broker or salesperson whom the indemnifying party authorized or employed, or acted by implication to authorize or employ, to act for the indemnifying party in connection with this Amendment.

7. <u>Further Assurances</u>. Landlord and Tenant each agree to execute any and all documents and agreements reasonably requested by the other party to further evidence or effectuate this Amendment.

8. <u>Successors and Assigns</u>. This Amendment is binding upon and inures to the benefit of the parties and their successors and assigns.

9. <u>Reaffirmation</u>. Except as modified herein, all other terms and conditions of the Lease remain in full force and effect, and nothing herein may be construed to relieve either Landlord or Tenant of any obligations as set forth therein.

10. <u>Conflicts</u>. In case of any conflict between any term or provision of this Amendment and the Lease, the term or provision of this Amendment will govern.

11. <u>Counterparts</u>. This Amendment may be executed in one or more counterparts, each of which is deemed an original, but all of which when taken together will constitute one agreement.

12. <u>PDF Signatures</u>. In order to expedite this transaction, signatures sent by PDF via e-mail may be used in place of ink-signed original signatures on this Amendment or any other document or agreement in this transaction, other than those to be recorded in the public records. Landlord and Tenant intend to be bound by the signatures on each PDF document, are aware that the other party will rely on the PDF signatures, and hereby waive any defenses to the enforcement of the terms of this Amendment or any related document based on the form of signature. In the event PDF signatures are used in any instance, ink-signed originals of those documents must also be promptly exchanged by the parties, but the failure to subsequently deliver those originals will not affect the enforceability of the PDF signatures.

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13. <u>Construction</u>. This Amendment shall be construed under the laws of the State of Minnesota. Whenever possible, each provision of this Amendment shall be interpreted in a manner that would render it effective and valid under applicable law. If any provision of this Amendment is determined to be invalid or unenforceable, that provision will be ineffective only to the extent of the prohibition or invalidity without invalidating or otherwise affecting the remaining provisions of this Amendment.

14. <u>Corporate Authority.</u> Landlord and Tenant represent and warrant to the other that each has the power and authority to enter into this Agreement and that the person duly executing this Agreement on behalf of each party has the requisite power and authority to do so.

15. <u>Entire Agreement</u>. The Lease, this Amendment, and any exhibits attached hereto, constitute the entire understanding of the parties with respect to this transaction, and supersede all prior agreements and understandings between the parties with respect to the subject matter. No representations, warranties, undertakings or promises, whether oral, implied, written, or otherwise, have been made by any party to any other party unless expressly stated in the above-referenced documents, or unless mutually agreed to in writing between the parties after the date hereof, and neither party has relied upon any verbal representations, agreements, or understandings not expressly set forth herein.

16. <u>Effectiveness</u>. The parties agree that the submission of a draft or copy of this Amendment for review or signature by a party is not intended, nor will it constitute or be deemed, by either party to be an offer to enter into a legally binding agreement with respect to the subject matter hereof and may not be relied on for any legal or equitable rights or obligations. Any draft or document submitted by Landlord or its agents to Tenant will not constitute a reservation of or option or offer in favor of Tenant. The parties will be legally bound with respect to the subject matter hereof pursuant to the terms of this Amendment only if, as and when all the parties have executed and delivered this Amendment to each other. Before the complete execution and delivery of this Amendment by all parties, each party will be free to negotiate the form and terms of this Amendment in a manner acceptable to that party in its sole and absolute discretion. The parties acknowledge and agree that the execution and delivery by one party before the execution and delivery of this Amendment by the other party will be of no force and effect and will in no way prejudice the party that executed this Amendment or the party that has not executed this Amendment.

*[Signature Page Follows]*

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IN AGREEMENT, the parties have executed this Amendment as of the day and year first written above.

---

| | |
|:---|:---|
| LANDLORD: | LANDLORD: |
| MSP Industrial Portfolio Owner, LLC, | MSP Industrial Portfolio Owner, LLC, |
| a Delaware limited liability company | a Delaware limited liability company |
| By: | */s/ Jasn Simek* |
| Name: | Jason Simek |
| Title: | Managing Partner |

---

---

| | |
|:---|:---|
| TENANT: | TENANT: |
| Imricor Medical Systems, Inc., a Delaware corporation | Imricor Medical Systems, Inc., a Delaware corporation |
| By: | */s/ Steve Wedan* |
| Name: | Steve Wedan |
| Title: | CEO |

---

------

**<u>EXHIBIT A</u>**

## Exhibit 10.12

**Exhibit 10.12**

**AMENDED AND RESTATED**<br> **EMPLOYMENT AGREEMENT**

**THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT** (the "**Agreement**") is executed by the parties on the date set forth on the signature page hereto and shall be effective as of April 11, 2019 (the "**Effective Date**"), by and between Imricor Medical Systems, Inc. (the "**Company**"), and Steven Wedan ("**Employee**").

**WHEREAS**, the Company and Employee entered into that certain Employment Agreement dated as of May 23, 2006 (the "**Prior Agreement**"), and the Company and Employee desire this Agreement to amend and restate such Prior Agreement;

**WHEREAS**, the Company wishes to continue to employ Employee as its President and Chief Executive Officer and Employee wishes to accept such continuing employment under the terms of this Agreement with the Company effective as of the Effective Date; and

**WHEREAS**, the parties mutually desire to enter into this Agreement setting forth the terms and conditions of Employee's employment with the Company,

**NOW, THEREFORE**, in consideration of the mutual covenants and consideration contained herein, the receipt and adequacy of which the parties expressly acknowledge, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Position Title and Responsibilities</u>. Subject to all of the terms and conditions of this Agreement, the Company agrees to employ Employee as its President and Chief Executive Officer, and Employee accepts such employment. Employee will report to the Company's Board of Directors. During the term of his employment, Employee agrees to devote his full working time exclusively to the Company's business and not to provide services to any other person or entity, except with the Company's express written consent, which may be withheld by the Company for any reason. Employee acknowledges and agrees that effective performance of his duties requires the highest level of integrity in all aspects of his employment with the Company. Therefore, Employee agrees, at all times, to perform all duties and assignments diligently, faithfully and to the best of his abilities. Employee further agrees to act, at all times, in compliance with Company policies and rules and in the best interests of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Compensation and Benefits</u>.

(a) The Company will pay Employee for all services to be rendered by him hereunder an annual salary at the base rate of $319,000 per annum, payable in accordance with customary payroll practices for other salaried employees of the Company.

(b) Following each calendar year of employment, Employee shall be eligible to receive an additional bonus (an "Annual Milestone Bonus") based on Employee's and/or the Company's attainment of financial, clinical development, commercialization and/or business milestones to be established annually by the Compensation Committee of the Board and approved by the Board of Directors. Employee does not have to remain employed by the Company through and on an Annual Milestone Bonus payment date in order to be eligible to receive the Annual Milestone Bonus payment payable on such date, unless Employee's employment was terminated by the Company for Cause, as defined herein, prior to the payment of the applicable Annual Milestone Bonus. Any Annual Milestone Bonus payable to Employee shall be less such amounts as are required to be withheld by law.

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(c) Employee will be eligible for annual base pay adjustments, bonuses, and/or additional stock option grants as approved by the Company's Board of Directors. The Company does not guarantee the adoption or continuation of any particular compensation program or benefit during Employee's employment and retains at all times the sole discretion to modify or discontinue its compensation programs and benefits, including as applicable to Employee. Nothing herein contained shall obligate the Company to pay any bonus or grant any pay increase or stock-based award to Employee, it being understood that any such increase, bonus or stock based award shall be in the sole discretion of the Company and that the amount thereof, if any, may vary depending on actual performance of the Company and Employee as determined in the sole discretion of the Company. Employee acknowledges that he must be in compliance with his obligations under this Agreement and actively employed with the Company at the time of payment of any bonus in order to be eligible to receive any annual bonus compensation.

(d) Employee shall be entitled to participate in, and receive benefits under, any retirement, insurance, hospitalization, medical, disability, or other employee benefit plan, program or policy of the Company which may be in effect during the course of his employment by the Company and which shall be generally available to similarly situated employees, subject to the terms of such plans, programs or policies including all eligibility requirements thereof. Notwithstanding the foregoing, the Company may, in its discretion, at any time and from time to time, change or revoke any of its employee benefit plans, programs or policies and Employee shall not be deemed, by virtue of this Agreement, to have any vested interest or right to participate in any such plans, programs or policies.

(e) Employee shall be entitled to six weeks paid time off in accordance with Company policy, to be scheduled as appropriate to his duties and responsibilities.

(f) Employee shall be entitled to reimbursement by the Company, in accordance with the Company's policies then applicable to executives at Employee's level, against appropriate vouchers or other receipts for authorized business expenses reasonably incurred by him in the performance of his duties hereunder.

(g) All payments required to be made by the Company under this Section 2 to Employee shall be subject to the withholding of such amounts relating to taxes and other governmental assessments as the Company may reasonably determine it should withhold pursuant to any applicable law, rule or regulation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Termination</u>.

(a) The Company may at any time during the term of this Agreement, by written notice, terminate the employment of Employee for cause, the cause to be specified in the notice. For purposes of this Agreement, "**cause**" shall mean (i) any willful misconduct by Employee in connection with the performance of any of his duties hereunder, including without limitation misappropriation of funds or property of the Company, securing or attempting to secure personally any profit in connection with any transaction entered into on behalf of the Company or any willful, intentional or grossly negligent act having the effect of injuring the reputation, business, business relationships or finances of the Company; (ii) willful failure, neglect or refusal to perform Employee's duties hereunder; (iii) breach of any material covenant or agreement contained in this Agreement; or (iv) conviction (or *nolo contendere* plea) in connection with a felony. Termination for cause shall be effective upon the giving of such notice and Employee shall be entitled to receive only (i) any earned and unpaid salary accrued through the date of termination and (ii) subject to the terms thereof, any benefits which may be vested and due to Employee on such date under the provisions of any employee benefit plan, program or policy.

(b) The Company may at any time during the term of this Agreement terminate the employment of Employee (i) without cause, for any reason or for no reason, or (ii) upon a finding by the Company, in its sole discretion and subject to applicable law, that Employee is unable to carry out his essential job functions to any substantial degree, with or without reasonable accommodation, as a result of any physical or mental condition. If the Company or its successor terminates Employee's employment pursuant to this Section 3(b), and Employee signs a general release of claims with respect to the Company or its successor and related parties (the "**Release**") and such Release becomes effective within 60 days of such employment termination, Employee shall be entitled to the following benefits: (i) an amount equal to twelve (12) months of his then current base salary which shall be payable over a period of twelve (12) months in accordance with the Company's normal payroll schedule beginning on the first payroll date following his execution of the Release and the expiration of any applicable rescission periods; and (ii) assuming Employee properly elects such coverage, the Company shall reimburse Employee on a monthly basis for the monthly premium under COBRA (or similar coverage under applicable state law) for Employee and his dependents (such premium to be the same amount the Company pays for other active employees with similar coverage) until the earlier of (x) twelve (12) months following termination of employment (y) the date when Employee is eligible to receive substantially equivalent health insurance coverage under the group plan of another employer.

(c) Employee may terminate his employment upon 30 days written notice of resignation to the Company. Following the receipt of such notice, the Company may waive all or a portion of the 30 days' notice requirement and fix an earlier date for termination of employment. In the event of such termination, Employee shall be entitled to receive only (i) any earned and unpaid salary accrued through the date of termination and (ii) subject to the terms thereof, any benefits which may be vested and due to Employee on such date under the provisions of any employee benefit plan, program or policy.

(d) This Agreement shall terminate immediately upon Employee's death. In such event, Employee's estate shall be paid Employee's annual base salary and all vested employee benefits through the date of termination, subject to all required withholdings, deductions and tax reporting requirements. Otherwise, the Company shall have no further obligation to Employee's estate.

(e) Except as set forth in the applicable subsection of this Section 3, Employee shall not be entitled to any payments or benefits from the Company, whether salary, severance, any type of bonus, including any pro rata portion thereof, or otherwise, following termination of his employment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Inventions</u>.

(a) <u>Definition</u>. "**Inventions**," as used in this Section 4, means any inventions, discoveries, improvements, technology, processes, ideas, drawings, designs, concepts, patent applications, specifications, know-how, trade secrets, prototypes, techniques, software code and documentation (whether or not they are in writing or reduced to practice) or works of authorship (whether or not they can be patented or copyrighted) that Employee makes, authors, or conceives (either alone or with others) and that:

(i) concern directly the Company's business or the Company's present or demonstrably anticipated future research or development;

(ii) result from any work Employee performs for the Company; or use the Company's equipment, supplies, facilities, or trade secret information.

(b) <u>Ownership of Inventions</u>. Employee agrees that all Inventions made by Employee during or after the Effective Date and within six (6) months after the termination of this Agreement will be the Company's sole and exclusive property, and to the extent applicable, shall be deemed to be "works for hire" under the United States copyright laws. Employee will, with respect to any Invention:

(i) keep current, accurate and complete records, which will belong to the Company and be kept and stored on the Company's premises;

(ii) promptly and fully disclose the existence and describe the nature of the Invention to the Company in writing (and without request);

(iii) to the extent exclusive title and/or ownership rights may not originally vest in the Company, assign (and Employee does hereby assign) to the Company all of Employee's rights to the Invention, any application Employee makes for patents or copyrights in any country, and any patents or copyrights granted to Employee in any country; and

(iv) acknowledge and deliver promptly to the Company any written instruments, and perform any other acts necessary in the Company's opinion to preserve property rights in the Invention against forfeiture, abandonment or loss and to obtain and maintain letters, patents and/or copyrights on the Invention and to vest the entire right and title to the Invention in the Company. Such execution and assistance shall be at no charge to the Company, but at the Company's expense and the Company shall reimburse Employee for reasonable out-of-pocket expenses incurred in connection therewith.

The requirements of this Section 4 do not apply to an Invention which qualifies as an exclusion under the provisions of Minnesota Statutes §181.78, which covers those inventions for which no equipment, supplies, facility or trade secret information of the Company was used and which was developed entirely on Employee's own time, and (A) which does not relate directly to the Company's business or to the Company's actual or demonstrably anticipated research or development, or (B) which does not result from any work Employee performed for the Company. Except as previously disclosed to the Company in writing, Employee does not have, and will not assert, any claims to or rights under any Inventions as having been made, conceived, authored or acquired by Employee prior to his employment by the Company.

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(c) <u>Obligations of Employee</u>. Employee will sign and execute all instruments of assignment and other papers to evidence the assignment of Employee's entire right, title and interest in such inventions, improvements, discoveries, writings or other works of authorship to the Company, at the request and the expense of the Company, and Employee will do all acts and sign all instruments of assignment and other papers the Company may reasonably request relating to applications for patents, copyrights, and the enforcement and protection thereof. If Employee is needed, at any time, to give testimony, evidence, or opinions in any litigation or proceeding involving any patents or copyrights or applications for patents or copyrights, both domestic and foreign, relating to inventions, improvements discoveries, writings or other works of authorship conceived, developed or reduced to practice by Employee, Employee agrees to do so, and if Employee leaves the employ of the Company, the Company shall pay Employee at a reasonable hourly rate mutually agreeable to Employee and the Company, plus reasonable traveling or other expenses.

(d) <u>Works Made for Hire</u>. To the extent that any Invention qualifies as "work made for hire" as defined in 17 U.S.C. §101 (1976), as amended, such Invention will constitute "work made for hire" and, as such, will be the exclusive property of the Company.

(e) <u>Presumption</u>. In the event of any dispute, arbitration or litigation concerning whether an invention, improvement or discovery made or conceived by Employee is the property of the Company, such invention, improvement or discovery will be presumed the property of the Company and Employee will bear the burden of establishing otherwise under Minnesota Statute §181.78.

(f) <u>Continuing Obligations</u>. The obligations of this Section 4 shall survive the expiration or termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Confidential Information</u>.

(a) <u>Definition</u>. "**Confidential Information**," as used in this Section 5, means any non-public information or material, whether or not the underlying details are in the public domain, including without limitation:

(i) Information or material that relates to the actual or anticipated business or research and development of the Company, its product plans or other information regarding Company's products, services and markets, including but not limited to technology, ideas, concepts, know-how, drawings, designs, inventions, discoveries, improvements, patents, patent applications, specifications, trade secrets, prototypes, processes, notes, memoranda, reports, Trade Secrets (as defined in Uniform Trade Secrets Act, Minnesota Statutes Chapter 325C), software code, documentation, information on vendors, members, customers, prospective customers, employees and prospective employees, training techniques, market research, sales and marketing plans, distribution arrangements, financial statements, financial information, financing strategies and opportunities, all of which relate directly or indirectly to the Company's products, services or business. Confidential Information does not include information that (i) has become publicly known and made generally available through no wrongful act of Employee, (ii) has been rightfully received by Employee from a third party who is authorized to make such disclosure; or (iii) is required to be disclosed by order of a governmental agency or by a court of competent jurisdiction;

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(ii) information or material relating to the Company's Inventions (as defined above);

(iii) information which when received is marked as "proprietary," "private," or "confidential"; and

(iv) any similar information of the type described above which the Company obtained from another party and which the Company treats as or designates as being proprietary, private or confidential, whether or not owned or developed by the Company.

Notwithstanding the foregoing, "Confidential Information" does not include any information that is now or later becomes lawfully in the public domain; provided, however, that information which is published by or with the aid of Employee outside the scope of employment or contrary to the requirements of this Agreement will not be considered to have been lawfully published, and therefore will not be in the public domain for purposes of this Agreement. Furthermore, "Confidential Information" does not include any information that is lawfully received by Employee from a third party having no obligations of confidentiality to the Company, is already lawfully in the possession of Employee through independent means at the time of disclosure, or is required to be disclosed by order of a governmental agency or by a court of competent jurisdiction.

(b) <u>Prohibition on Use of Confidential Information</u>. Employee will never, either during or after Employee's employment by the Company, use Confidential Information for any purpose other than the business of the Company or publish or disclose it to any person who is not also an employee, officer or director of the Company, and will use all reasonable care, but in no event less care than Employee takes to protect Employee's own Confidential Information of similar importance. When Employee's employment with the Company ends, Employee will promptly deliver to the Company all records and any compositions, articles, devices, designs, drawings, graphics, apparatus and other items or records that disclose, describe or embody Confidential Information, including all copies, reproductions, specimens or computer disks containing Confidential Information in Employee's possession, regardless of who prepared them, and will promptly deliver any other property of the Company in Employee's possession, whether or not Confidential Information.

(c) <u>Other Information</u>. Employee will not disclose to the Company or use in the Company's business any confidential information which Employee possesses concerning any former employer or third party.

(d) <u>Continuing Obligations</u>. The obligations of this Section 5 shall survive the expiration or termination of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Non-Competition</u>.

(a) <u>Representation</u>. Employee represents and warrants to the Company that he is not currently subject to a non-competition, confidentiality or other such agreement or covenant with any former employer or other business which prohibits Employee from working for the Company.

(b) <u>Definition</u>. "Company Product" means any actual product, product under development, product line, service, technology or product concept that is or has been investigated, studied, conceived, designed, developed (or is under active development), manufactured, marketed or sold by the Company prior to or during the term of this Agreement or regarding which the Company has conducted or acquired research and development prior to or during the term of this Agreement.

(c) <u>Non-Compete Covenant</u>. Employee agrees that beginning with the Effective Date and continuing for a period of twelve (12) months after his employment with the Company ends, Employee will not alone, or in any capacity with another company, within the United States of America:

(i) directly or indirectly participate in or support in any capacity (e.g., as an advisor, principal, agent, partner, officer, director, shareholder, owner, employee or otherwise) the design, development, manufacture, sale, solicitation of sale, marketing, testing, research or other business activities designed, developed, manufactured, marketed or sold by anyone other than the Company that performs or functions substantially similar to a Company Product or addresses a market substantially similar to the Company's market (each, a "**Competing Business**");

(ii) in connection with a Competing Business, call upon, solicit, contact or serve any of the then-existing customers, vendors or suppliers, of the Company, any customers, vendors or suppliers that have had a relationship with the Company during the preceding twelve (12) months, or any potential customers, vendors or suppliers that were solicited by the Company during the preceding twelve (12) months;

(iii) whether or not in connection with a Competing Business, interfere with or impair (or attempt to do the same) with the Company's relationship with its employees, customers, vendors or suppliers; or

(iv) employ or attempt to employ (by soliciting or assisting anyone else in the solicitation of) any of the Company's current employees, or any person employed by the Company as of the date of Employee's termination, whether voluntary or involuntary, on behalf of any other entity, whether or not such entity competes with the Company or any Company Product.

(d) <u>Permitted Activities</u>. The restrictions contained in Section 6(c) will not prevent Employee from accepting employment with a large diversified medical products organization with separate and distinct divisions that do not compete, directly or indirectly, with the Company, as long as prior to accepting such employment the Company receives separate written assurances from the prospective employer and from Employee, satisfactory to the Company, to the effect that Employee will not render any services, directly or indirectly, to any division or business unit that competes, directly or indirectly, with the Company. During the restrictive period set forth in Section 6(c), Employee will inform any new employer, prior to accepting employment, of the existence of this Agreement and provide such employer with a copy of this Agreement. Further, the restrictions in Section 6(c) will not prohibit Employee from owning up to 5% of the capital stock of a publicly traded medical device company even if such public company has a product line which may compete with a Company Product.

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(e) <u>Termination</u>. Section 6(c) will cease to be applicable to any activity of Employee from and after such time as the Company (i) has ceased all business activities for a period of six months or (ii) has made a decision through its Board of Directors not to continue, or has ceased for a period of six months, the business activities with which such activity of Employee would be competitive.

(f) <u>No Additional Payment</u>. In the event that Employee's employment terminates for any reason, no additional compensation will be paid for this non-competition obligation.

(g) <u>Continuing Obligations</u>. The obligations of this Section 6 shall survive the expiration or termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>No Contrary Obligations</u>. Employee represents and warrants that he is not subject to any agreement with any prior employer or otherwise that would prevent him from performing all of his duties and responsibilities under this Agreement fully and without restriction. Employee further represents and warrants that he does not have in his possession or control any confidential or proprietary information or trade secrets belonging to any prior employer or any other person that relates in any way to the Company's business. Employee understands and agrees that he shall not use or disclose in his employment with the Company any confidential or proprietary information or trade secrets belonging to any prior employer or any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Company Property</u>. In the event of termination of Employee's employment with the Company, for any reason, Employee agrees to return to the Company all documents or data (whether in hard-copy or electronic form), materials, computer software, supplies, calling or credit cards, keys, passes, and any other property of the Company or that was used in the course of Employee's employment with the Company, including but not limited to all documents and materials containing confidential or proprietary information or trade secrets. The return of such items shall be made at or before the time of termination, or if that is not possible, as soon thereafter as is possible. In addition, Employee agrees at or before the time of termination, to provide to the Company all password and similar information which will be necessary or useful for the Company to access materials on which Employee worked or to otherwise continue in its business. Upon his fulfillment of the obligations set forth in this section, Employee shall execute an affidavit attesting to his compliance with this provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Survival</u>. Employee's obligations under Sections 3(b), 4, 5, 6, 8 and 10 of this Agreement shall continue during the course of his employment by the Company, shall survive the cessation of his employment, and shall continue indefinitely thereafter, unless explicitly stated otherwise herein. Employee's continuing obligations shall operate regardless of the circumstances of, or reasons for, the cessation of Employee's employment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Equitable Remedies</u>. Employee acknowledges that the Company will suffer irreparable damage if any provisions of this Agreement are not performed strictly in accordance with their terms or are otherwise breached, for which money damages could not adequately compensate the Company. Employee hereby expressly agrees that the Company shall be entitled as a matter of right to injunctive or other equitable relief, whether temporary, emergency, preliminary, prospective, or permanent, in addition to all other remedies permitted by law, to prevent a breach or violation by him and to secure enforcement of the provisions of this Agreement. Employee therefore consents to the issuance of injunctive relief, without the necessity of the Company posting a bond. Resort to such equitable relief, however, shall not constitute a waiver of any other rights or remedies which the Company may have.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Entire Agreement; No Modification</u>. This Agreement constitute the entire agreement between the parties hereto and there are no other terms other than those contained herein. No variation or modification to the Agreement shall be deemed valid unless in writing and signed by the parties hereto and no discharge of the terms hereof shall be deemed valid unless by full performance of the parties hereto or by a writing signed by the parties hereto. This Agreement amends, restates and replaces in its entirety the Prior Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>No Waiver</u>. No waiver by the Company of any breach by Employee of any provision or condition of this Agreement by him to be performed shall be deemed a waiver of a breach of a similar or dissimilar provision or condition at the same time or any prior or subsequent time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Severability</u>. The parties acknowledge that the terms of this Agreement are fair and reasonable at the date signed by them. However, in light of the possibility of a change of conditions or differing interpretations by a court of what is fair and reasonable, the parties agree as follows: Each provision of this Agreement will be treated as a separate and independent clause. If any one or more of the terms, provisions, covenants or restrictions of this Agreement shall be determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated; further, if any one or more of the terms, provisions, covenants, and restrictions contained in this Agreement shall for any reason be determined by a court of competent jurisdiction to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed, by limiting or reducing it, so as to be enforceable to the maximum extent compatible with then applicable law. The Company and Employee expressly stipulate that this Agreement is to be given the construction which renders its provisions valid and enforceable to the maximum extent (not exceeding its express terms) possible under applicable law.

Page **9** of **11**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Compliance with Section 409A</u>. It is the parties' intention that severance payments under this Agreement will be exempt from the requirements of Section 409A of the Internal Revenue Code, and guidance issued thereunder ("**Section 409A**") because they are short term deferrals under Treas. Reg. Sec. 1.409A-1(b)(4) or payments under a separation pay plan within the meaning of Treas. Reg. Sec. 1.409A-1(b)(9) and this Agreement shall be construed and administered in a manner consistent with such intent. For purposes of Section 409A, each payment under this Agreement will be treated as a separate payment. To the extent the payments under this Agreement are subject to Section 409A, the Agreement shall be interpreted in a manner that complies with section 409A and guidance under section 409A (collectively "**Section 409A**"). For example, payments on account of a termination of employment may only be made upon a "separation from service" as defined under Section 409A. In addition, if at the time of such termination of employment Employee is a "specified" employee under Section 409A, then any payment or payments of deferred compensation shall not be made or commenced until the first day following the earlier of (x) the expiration of the six (6)-month period measured from the date of the "separation from service"; or (y) the date of death following such separation from service.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Successors and Assigns</u>. This Agreement is a personal contract calling for the provision of unique services by Employee, and Employee's rights and obligations hereunder may not be sold, transferred, assigned, or pledged by Employee. In the event of any attempted assignment or transfer of rights hereunder by Employee contrary to the provisions hereof, the Company shall have no further liability for payments hereunder. This Agreement may be assigned, in whole or in part, by the Company to its successors and assigns, and Employee shall remain bound to fulfill Employee's obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Choice of Law</u>. This Agreement will be governed by and interpreted in accordance with the laws of the State of Minnesota, excluding its choice of law rules. Employee hereby consents to personal jurisdiction in the state and federal courts of Minnesota for any lawsuit filed there against him by the Company or its successors or assigns arising from or related to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>No Presumptions</u>. Each party acknowledges that such party has participated, with, at its option, the advice of counsel, in the preparation of this Agreement. The language of all provisions of this Agreement shall in all cases be construed as a whole, extending to it its fair meaning, and not strictly for or against either of the parties. The parties agree that they have jointly prepared and approved the language of the provisions of this Agreement and that should any dispute arise concerning the interpretation of any provision hereof, neither party shall be deemed the drafter nor shall any such language be presumptively construed in favor of or against either party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Headings</u>. The headings in this Agreement are for convenience of reference only and shall not control or affect the meaning or construction of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Counterparts.</u>This Agreement may be executed in several counterparts (and delivered by facsimile, "pdf" or other electronic means) and all so executed shall constitute one and the same agreement binding upon all of the parties hereto, notwithstanding that all parties are not signatory to the original or the same counterpart.

*[signature page follows]*

Page **10** of **11**

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**IN WITNESS WHEREOF**, the parties have caused this Agreement to be executed on the date first above written.

---

| | | |
|:---|:---|:---|
| **IMRICOR MEDICAL SYSTEMS,** <br> **INC.** | **IMRICOR MEDICAL SYSTEMS,** <br> **INC.** | **EMPLOYEE:** |
| By: | */s/ Mark Tibbles* | */s/ Steve Wedan* |
|  | Mark Tibbles | Steve Wedan |
|  | Director |  |

---

Page **11** of **11**

## Exhibit 10.13

**Exhibit 10.13**

**EMPLOYMENT AGREEMENT**

**THIS EMPLOYMENT AGREEMENT** (the "**Agreement**") is executed by the parties on the date set forth on the signature page hereto and shall be effective as of October 23, 2019 (the "**Effective Date**"), by and between Imricor Medical Systems, Inc. (the "**Company**"), and Gregg Stenzel ("**Employee**").

**WHEREAS**, the Company wishes to employ Employee as its VP Operations and Employee wishes to accept such employment with the Company effective as of the Effective Date; and

**WHEREAS**, the parties mutually desire to enter into this Agreement setting forth the terms and conditions of Employee's employment with the Company.

**NOW, THEREFORE**, in consideration of the mutual covenants and consideration contained herein, the receipt and adequacy of which the parties expressly acknowledge, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Position Title and Responsibilities</u>. Subject to all of the terms and conditions of this Agreement, the Company agrees to employ Employee as its VP Operations, and Employee accepts such employment. Employee will report to the Company's Chief Executive Officer. During the term of her or his employment, Employee agrees to devote her or his full working time exclusively to the Company's business and not to provide services to any other person or entity, except with the Company's express written consent, which may be withheld by the Company for any reason. Employee acknowledges and agrees that effective performance of her or his duties requires the highest level of integrity in all aspects of her or his employment with the Company. Therefore, Employee agrees, at all times, to perform all duties and assignments diligently, faithfully and to the best of her or his abilities. Employee further agrees to act, at all times, in compliance with Company policies and rules and in the best interests of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Compensation and Benefits</u>.

(a) The Company will pay Employee for all services to be rendered by her or his hereunder an annual salary at the base rate of $220,000 per annum, payable in accordance with customary payroll practices for other salaried employees of the Company.

(b) Following each calendar year of employment, Employee shall be eligible to receive an additional bonus (an "**Annual Milestone Bonus**") based on Employee's and/or the Company's attainment of financial, clinical development, commercialization and/or business milestones to be established annually by the Nomination and Remuneration Committee of the Board and approved by the Board of Directors. Except as otherwise provided herein, Employee does not have to remain employed by the Company through and on an Annual Milestone Bonus payment date in order to be eligible to receive the Annual Milestone Bonus payment payable on such date, unless Employee's employment was terminated by the Company for Cause, as defined herein, prior to the payment of the applicable Annual Milestone Bonus. Any Annual Milestone Bonus payable to Employee shall be less such amounts as are required to be withheld by law.

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(c) Employee will be eligible for annual base pay adjustments, bonuses, and/or stock-based award as approved by the Company's Board of Directors. The Company does not guarantee the adoption or continuation of any particular compensation program or benefit during Employee's employment and retains at all times the sole discretion to modify or discontinue its compensation programs and benefits, including as applicable to Employee. Nothing herein contained shall obligate the Company to pay any bonus or grant any pay increase or stock-based award to Employee, it being understood that any such increase, bonus or stock-based award shall be in the sole discretion of the Company and that the amount thereof, if any, may vary depending on actual performance of the Company and Employee as determined in the sole discretion of the Company. Employee acknowledges that she or he must be in compliance with her or his obligations under this Agreement and actively employed with the Company at the time of payment of any bonus in order to be eligible to receive any annual bonus compensation.

(d) Employee shall be entitled to participate in, and receive benefits under, any retirement, insurance, hospitalization, medical, disability, or other employee benefit plan, program or policy of the Company which may be in effect during the course of her or his employment by the Company and which shall be generally available to similarly situated employees, subject to the terms of such plans, programs or policies including all eligibility requirements thereof. Notwithstanding the foregoing, the Company may, in its discretion, at any time and from time to time, change or revoke any of its employee benefit plans, programs or policies and Employee shall not be deemed, by virtue of this Agreement, to have any vested interest or right to participate in any such plans, programs or policies.

(e) Employee shall be entitled to 30 days paid time off in accordance with Company policy, to be scheduled as appropriate to her or his duties and responsibilities.

(f) Employee shall be entitled to reimbursement by the Company, in accordance with the Company's policies then applicable to executives at Employee's level, against appropriate vouchers or other receipts for authorized business expenses reasonably incurred by her or his in the performance of her or his duties hereunder.

(g) All payments required to be made by the Company under this Section 2 to Employee shall be subject to the withholding of such amounts relating to taxes and other governmental assessments as the Company may reasonably determine it should withhold pursuant to any applicable law, rule or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Termination</u>.

(a) The Company may at any time during the term of this Agreement, by written notice, terminate the employment of Employee for cause, the cause to be specified in the notice. For purposes of this Agreement, "**cause**" shall mean (i) any willful misconduct by Employee in connection with the performance of any of her or his duties hereunder, including without limitation misappropriation of funds or property of the Company, securing or attempting to secure personally any profit in connection with any transaction entered into on behalf of the Company or any willful, intentional or grossly negligent act having the effect of injuring the reputation, business, business relationships or finances of the Company; (ii) willful failure, neglect or refusal to perform Employee's duties hereunder; (iii) breach of any material covenant or agreement contained in this Agreement or the "Confidentiality, Invention Assignment and Non-Competition Agreement" dated as of May 7, 2007 ("**Confidentiality Agreement**") between the Company and Employee; or (iv) conviction (or *nolo contendere* plea) in connection with a felony. Termination for cause shall be effective upon the giving of such notice and Employee shall be entitled to receive only (A) any earned and unpaid salary accrued through the date of termination and (B) subject to the terms thereof, any benefits which may be vested and due to Employee on such date under the provisions of any employee benefit plan, program or policy.

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(b) The Company may at any time during the term of this Agreement terminate the employment of Employee without cause, for any reason or for no reason. If the Company or its successor terminates Employee's employment pursuant to this Section 3(b), and Employee signs a general release of claims with respect to the Company or its successor and related parties (the "**Release**") and such Release becomes effective within 60 days of such employment termination, Employee shall be entitled to the following benefits: (i) an amount equal to six (6) months of her or his then current base salary which shall be payable over a period of six (6) months in accordance with the Company's normal payroll schedule beginning on the first payroll date following her or his execution of the Release and the expiration of any applicable rescission periods; and (ii) assuming Employee properly elects such coverage, the Company shall reimburse Employee on a monthly basis for the monthly premium under COBRA (or similar coverage under applicable state law) for Employee and her or his dependents (such premium to be the same amount the Company pays for other active employees with similar coverage) until the earlier of (x) six (6) months following termination of employment and (y) the date when Employee is eligible to receive substantially equivalent health insurance coverage under the group plan of another employer.

(c) Employee may terminate her or his employment upon 30 days written notice of resignation to the Company. Following the receipt of such notice, the Company may waive all or a portion of the 30 days' notice requirement and fix an earlier date for termination of employment. In the event of such termination, Employee shall be entitled to receive only (i) any earned and unpaid salary accrued through the date of termination and (ii) subject to the terms thereof, any benefits which may be vested and due to Employee on such date under the provisions of any employee benefit plan, program or policy.

(d) This Agreement shall terminate immediately upon Employee's death or upon a finding by the Company, in its sole discretion and subject to applicable law, that Employee is unable to carry out her or his essential job functions to any substantial degree, with or without reasonable accommodation, as a result of any physical or mental condition. In either such event, Employee or Employee's estate shall be paid annual base salary and all vested employee benefits through the date of termination, subject to all required withholdings, deductions and tax reporting requirements. Otherwise, the Company shall have no further obligation to Employee or her or his estate. Notwithstanding the foregoing, any stock-based award will be subject to the terms and conditions of any plan relating thereto.

(e) Except as set forth in the applicable subsection of this Section 3, Employee shall not be entitled to any payments or benefits from the Company, whether salary, severance, any type of bonus, including any pro rata portion thereof, or otherwise, following termination of her or his employment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Proprietary Information, Non-competition, Non-solicitation, and Assignment of Inventions</u>. In consideration for the personal and economic benefits provided to Employee under this Agreement, and as a material condition of the Company's obligations under this Agreement, including, but not limited to, severance provided in Section 3(b), Employee agrees that (i) the terms of the Confidentiality Agreement are enforceable against her or his as an employee of the Company and (ii) the Confidentiality Agreement remains in full force and effect in accordance with its terms. Employee acknowledges that her or his obligations under this Agreement and the Confidentiality Agreement are in addition to any obligations she or he has under any federal, state or other law, including but not limited to laws protecting confidential information and/or trade secrets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>No Contrary Obligations</u>. Employee represents and warrants that she or he is not subject to any agreement with any prior employer or otherwise that would prevent her or his from performing all of her or his duties and responsibilities under this Agreement fully and without restriction. Employee further represents and warrants that she or he does not have in her or his possession or control any confidential or proprietary information or trade secrets belonging to any prior employer or any other person that relates in any way to the Company's business. Employee understands and agrees that she or he shall not use or disclose in her or his employment with the Company any confidential or proprietary information or trade secrets belonging to any prior employer or any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Company Property</u>. In the event of termination of Employee's employment with the Company, for any reason, Employee agrees to return to the Company all documents or data (whether in hard-copy or electronic form), materials, computer software, supplies, calling or credit cards, keys, passes, and any other property of the Company or that was used in the course of Employee's employment with the Company, including but not limited to all documents and materials containing confidential or proprietary information or trade secrets. The return of such items shall be made at or before the time of termination, or if that is not possible, as soon thereafter as is possible. In addition, Employee agrees at or before the time of termination, to provide to the Company all password and similar information which will be necessary or useful for the Company to access materials on which Employee worked or to otherwise continue in its business. Upon her or his fulfillment of the obligations set forth in this section, Employee shall execute an affidavit attesting to her or his compliance with this provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Survival</u>. Employee's obligations under Sections 3(b), 4, 6, 8 and 12 of this Agreement shall continue during the course of her or his employment by the Company, shall survive the cessation of her or his employment, and shall continue indefinitely thereafter, unless explicitly stated otherwise herein. Employee's continuing obligations shall operate regardless of the circumstances of, or reasons for, the cessation of Employee's employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Equitable Remedies</u>. Employee acknowledges that the Company will suffer irreparable damage if any provisions of this Agreement or the Confidentiality Agreement are not performed strictly in accordance with their terms or are otherwise breached, for which money damages could not adequately compensate the Company. Employee hereby expressly agrees that the Company shall be entitled as a matter of right to injunctive or other equitable relief, whether temporary, emergency, preliminary, prospective, or permanent, in addition to all other remedies permitted by law, to prevent a breach or violation by her or his and to secure enforcement of the provisions of this Agreement or the Confidentiality Agreement. Employee therefore consents to the issuance of injunctive relief, without the necessity of the Company posting a bond. Resort to such equitable relief, however, shall not constitute a waiver of any other rights or remedies which the Company may have.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Entire Agreement; No Modification</u>. This Agreement and the Confidentiality Agreement constitute the entire agreement between the parties hereto and there are no other terms other than those contained herein. No variation or modification to the Agreement shall be deemed valid unless in writing and signed by the parties hereto and no discharge of the terms hereof shall be deemed valid unless by full performance of the parties hereto or by a writing signed by the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>No Waiver</u>. No waiver by the Company of any breach by Employee of any provision or condition of this Agreement by her or his to be performed shall be deemed a waiver of a breach of a similar or dissimilar provision or condition at the same time or any prior or subsequent time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Severability</u>. The parties acknowledge that the terms of this Agreement, including the terms of the Confidentiality Agreement, are fair and reasonable at the date signed by them. However, in light of the possibility of a change of conditions or differing interpretations by a court of what is fair and reasonable, the parties agree that each provision of this Agreement will be treated as a separate and independent clause. If any one or more of the terms, provisions, covenants or restrictions of this Agreement shall be determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated; further, if any one or more of the terms, provisions, covenants, and restrictions contained in this Agreement shall for any reason be determined by a court of competent jurisdiction to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed, by limiting or reducing it, so as to be enforceable to the maximum extent compatible with then applicable law. The Company and Employee expressly stipulate that this Agreement is to be given the construction which renders its provisions valid and enforceable to the maximum extent (not exceeding its express terms) possible under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Compliance with Section 409A</u>. It is the parties' intention that severance payments under this Agreement will be exempt from the requirements of Section 409A of the Internal Revenue Code, and guidance issued thereunder ("**Section 409A**") because they are short term deferrals under Treas. Reg. Sec. 1.409A-1(b)(4) or payments under a separation pay plan within the meaning of Treas. Reg. Sec. 1.409A-1(b)(9) and this Agreement shall be construed and administered in a manner consistent with such intent. For purposes of Section 409A, each payment under this Agreement will be treated as a separate payment. To the extent the payments under this Agreement are subject to Section 409A, the Agreement shall be interpreted in a manner that complies with section 409A and guidance under section 409A (collectively "**Section 409A**"). For example, payments on account of a termination of employment may only be made upon a "separation from service" as defined under Section 409A. In addition, if at the time of such termination of employment Employee is a "specified" employee under Section 409A, then any payment or payments of deferred compensation shall not be made or commenced until the first day following the earlier of (x) the expiration of the six (6)-month period measured from the date of the "separation from service"; or (y) the date of death following such separation from service.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Successors and Assigns</u>. This Agreement is a personal contract calling for the provision of unique services by Employee, and Employee's rights and obligations hereunder may not be sold, transferred, assigned, or pledged by Employee. In the event of any attempted assignment or transfer of rights hereunder by Employee contrary to the provisions hereof, the Company shall have no further liability for payments hereunder. This Agreement may be assigned, in whole or in part, by the Company to its successors and assigns, and Employee shall remain bound to fulfill Employee's obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Choice of Law</u>. This Agreement will be governed by and interpreted in accordance with the laws of the State of Minnesota, excluding its choice of law rules. Employee hereby consents to personal jurisdiction in the state and federal courts of Minnesota for any lawsuit filed there against her or his by the Company or its successors or assigns arising from or related to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>No Presumptions</u>. Each party acknowledges that such party has participated, with, at its option, the advice of counsel, in the preparation of this Agreement. The language of all provisions of this Agreement shall in all cases be construed as a whole, extending to it its fair meaning, and not strictly for or against either of the parties. The parties agree that they have jointly prepared and approved the language of the provisions of this Agreement and that should any dispute arise concerning the interpretation of any provision hereof, neither party shall be deemed the drafter nor shall any such language be presumptively construed in favor of or against either party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Headings</u>. The headings in this Agreement are for convenience of reference only and shall not control or affect the meaning or construction of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Counterparts</u>. This Agreement may be executed in several counterparts (and delivered by facsimile, "pdf" or other electronic means) and all so executed shall constitute one and the same agreement binding upon all of the parties hereto, notwithstanding that all parties are not signatory to the original or the same counterpart.

*[signature page follows]*

------

**IN WITNESS WHEREOF**, the parties have caused this Agreement to be executed on the date first above written.

---

| | | |
|:---|:---|:---|
| **IMRICOR MEDICAL SYSTEMS, INC.** | **IMRICOR MEDICAL SYSTEMS, INC.** | **EMPLOYEE:** |
| By: | */s/ Steve Wedan* | *<u>/s/ Gregg Stenzel</u>* |
| Name: Steve Wedan | Name: Steve Wedan | Name: Gregg Stenzel |
| Its: Chief Executive Officer | Its: Chief Executive Officer |  |

---

## Exhibit 10.14

**Exhibit 10.14**

**EMPLOYMENT AGREEMENT**

**THIS EMPLOYMENT AGREEMENT** (the "**Agreement**") is executed by the parties on the date set forth on the signature page hereto and shall be effective as of February 20, 2024 (the "**Effective Date**"), by and between Imricor Medical Systems, Inc. (the "**Company**"), and Jonathon Gut ("**Employee**").

**WHEREAS**, the Employee has served as the Controller of the Company since August 10, 2020; and

**WHEREAS**, the Board of Directors of the Company has elected Employee to the office of Chief Financial Officer of the Company as of July 1, 2022 and the Employee wishes to accept such election under the terms of this Agreement; and

**WHEREAS**, the parties mutually desire to enter into this Agreement setting forth the terms and conditions of Employee's employment with the Company,

**NOW, THEREFORE**, in consideration of the mutual covenants and consideration contained herein, the receipt and adequacy of which the parties expressly acknowledge, the parties hereto agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Position Title and Responsibilities</u>. Subject to all of the terms and conditions of this Agreement, the Company agrees to employ Employee as its VP of Finance and CFO, and Employee accepts such employment. Employee will report to the Company's Chief Executive Officer. During the term of his employment, Employee agrees to devote his full working time exclusively to the Company's business and not to provide services to any other person or entity, except with the Company's express written consent, which may be withheld by the Company for any reason. Employee acknowledges and agrees that effective performance of his duties requires the highest level of integrity in all aspects of his employment with the Company. Therefore, Employee agrees, at all times, to perform all duties and assignments diligently, faithfully and to the best of his abilities. Employee further agrees to act, at all times, in compliance with Company policies and rules and in the best interests of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Compensation and Benefits.</u>

(a) The Company will pay Employee for all services to be rendered by him hereunder an annual salary at the base rate of $259,375 per annum, payable in accordance with customary payroll practices for other salaried employees of the Company.

(b) Following each calendar year of employment, Employee shall be eligible to receive an additional bonus (an "**Annual Milestone Bonus**") based on Employee's and/or the Company's attainment of financial, clinical development, commercialization and/or business milestones to be established annually by the Nomination and Remuneration Committee of the Board and approved by the Board of Directors. Employee does not have to remain employed by the Company through and on an Annual Milestone Bonus payment date in order to be eligible to receive the Annual Milestone Bonus payment payable on such date, unless Employee's employment was terminated by the Company for Cause, as defined herein, prior to the payment of the applicable Annual Milestone Bonus. Any Annual Milestone Bonus payable to Employee shall be less such amounts as are required to be withheld by law.

Page **1** of **8**

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(c) Employee will be eligible for annual base pay adjustments, bonuses, and/or additional stock option grants as approved by the Company's Board of Directors. The Company does not guarantee the adoption or continuation of any particular compensation program or benefit during Employee's employment and retains at all times the sole discretion to modify or discontinue its compensation programs and benefits, including as applicable to Employee. Nothing herein contained shall obligate the Company to pay any bonus or grant any pay increase or stock-based award to Employee, it being understood that any such increase, bonus or stock based award shall be in the sole discretion of the Company and that the amount thereof, if any, may vary depending on actual performance of the Company and Employee as determined in the sole discretion of the Company. Employee acknowledges that he must be in compliance with his obligations under this Agreement and, except as otherwise provided in Section 2(b) hereof, be actively employed with the Company at the time of payment of any bonus in order to be eligible to receive any annual bonus compensation.

(d) Employee shall be entitled to participate in, and receive benefits under, any retirement, insurance, hospitalization, medical, disability, or other employee benefit plan, program or policy of the Company which may be in effect during the course of his employment by the Company and which shall be generally available to similarly situated employees, subject to the terms of such plans, programs or policies including all eligibility requirements thereof. Notwithstanding the foregoing, the Company may, in its discretion, at any time and from time to time, change or revoke any of its employee benefit plans, programs or policies and Employee shall not be deemed, by virtue of this Agreement, to have any vested interest or right to participate in any such plans, programs or policies.

(e) Employee shall be entitled to paid time off in accordance with Company policy, to be scheduled as appropriate to his duties and responsibilities.

(f) Employee shall be entitled to reimbursement by the Company, in accordance with the Company's policies then applicable to executives at Employee's level, against appropriate vouchers or other receipts for authorized business expenses reasonably incurred by him in the performance of his duties hereunder.

(g) All payments required to be made by the Company under this Section 2 to Employee shall be subject to the withholding of such amounts relating to taxes and other governmental assessments as the Company may reasonably determine it should withhold pursuant to any applicable law, rule or regulation.

Page **2** of **8**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Termination.</u>

(a) The Company may at any time during the term of this Agreement, by written notice, terminate the employment of Employee for cause, the cause to be specified in the notice. For purposes of this Agreement, "**cause**" shall mean (i) any willful misconduct by Employee in connection with the performance of any of his duties hereunder, including without limitation misappropriation of funds or property of the Company, securing or attempting to secure personally any profit in connection with any transaction entered into on behalf of the Company or any willful, intentional or grossly negligent act having the effect of injuring the reputation, business, business relationships or finances of the Company; (ii) willful failure, neglect or refusal to perform Employee's duties hereunder; (iii) breach of any material covenant or agreement contained in this Agreement or the "Confidentiality, Inventions Assignment and Non-Competition Agreement" dated August 10, 2020 ("**Confidentiality Agreement**"), a copy of which is attached as Exhibit No. 1 to this Agreement, between the Company and Employee; or (iv) conviction (or *nolo contendere* plea) in connection with a felony. Termination for cause shall be effective upon the giving of such notice and Employee shall be entitled to receive only (i) any earned and unpaid salary accrued through the date of termination and (ii) subject to the terms thereof, any benefits which may be vested and due to Employee on such date under the provisions of any employee benefit plan, program or policy.

(b) The Company may at any time during the term of this Agreement terminate the employment of Employee without cause, for any reason or for no reason. If the Company or its successor terminates Employee's employment pursuant to this Section 3(b), and Employee signs a general release of claims with respect to the Company or its successor and related parties (the "**Release**") and such Release becomes effective within 60 days of such employment termination, Employee shall be entitled to the following benefits: (i) an amount equal to six (6) months of his then current base salary which shall be payable over a period of six (6) months in accordance with the Company's normal payroll schedule beginning on the first payroll date following his execution of the Release and the expiration of any applicable rescission periods; and (ii) assuming Employee properly elects such coverage, the Company shall reimburse Employee on a monthly basis for the monthly premium under COBRA (or similar coverage under applicable state law) for Employee and his dependents (such premium to be the same amount the Company pays for other active employees with similar coverage) until the earlier of (x) six (6) months following termination of employment or (y) the date when Employee is eligible to receive substantially equivalent health insurance coverage under the group plan of another employer.

(c) Employee may terminate his employment upon 30 days written notice of resignation to the Company. Following the receipt of such notice, the Company may waive all or a portion of the 30 days' notice requirement and fix an earlier date for termination of employment. In the event of such termination, Employee shall be entitled to receive only (i) any earned and unpaid salary accrued through the date of termination and (ii) subject to the terms thereof, any benefits which may be vested and due to Employee on such date under the provisions of any employee benefit plan, program or policy.

(d) This Agreement shall terminate immediately upon Employee's death or upon a finding by the Company, in its sole discretion and subject to applicable law, that Employee is unable to carry out his essential job functions to any substantial degree, with or without reasonable accommodation, as a result of any physical or mental condition. In either such event, Employee or Employee's estate shall be paid annual base salary and all vested employee benefits through the date of termination, subject to all required withholdings, deductions and tax reporting requirements. Otherwise, the Company shall have no further obligation to Employee or his estate. Notwithstanding the foregoing, any stock-based award will be subject to the terms and conditions of any plan relating thereto.

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(e) Except as set forth in the applicable subsection of this Section 3, Employee shall not be entitled to any payments or benefits from the Company, whether salary, severance, any type of bonus, including any *pro rata* portion thereof, or otherwise, following termination of his employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Proprietary Information, Non-competition, Non-solicitation, and Assignment of Inventions</u>. In consideration for the personal and economic benefits provided to him under this Agreement, and as a material condition of the Company's obligations under this Agreement, including, but not limited to, severance provided in Section 3(b), Employee agrees that (i) the terms of the Confidentiality Agreement have been and remain enforceable against him as an employee of the Company and (ii) the Confidentiality Agreement remains in full force and effect in accordance with its terms. Employee acknowledges that his obligations under this Agreement and the Confidentiality Agreement are in addition to any obligations he has under any federal, state or other law, including but not limited to laws protecting confidential information and/or trade secrets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>No Contrary Obligations</u>. Employee represents and warrants that he is not subject to any agreement with any prior employer or otherwise that would prevent him from performing all of his duties and responsibilities under this Agreement fully and without restriction. Employee further represents and warrants that he does not have in his possession or control any confidential or proprietary information or trade secrets belonging to any prior employer or any other person that relates in any way to the Company's business. Employee understands and agrees that he shall not use or disclose in his employment with the Company any confidential or proprietary information or trade secrets belonging to any prior employer or any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Company Property</u>. In the event of termination of Employee's employment with the Company, for any reason, Employee agrees to return to the Company all documents or data (whether in hard-copy or electronic form), materials, computer software, supplies, calling or credit cards, keys, passes, and any other property of the Company or that was used in the course of Employee's employment with the Company, including but not limited to all documents and materials containing confidential or proprietary information or trade secrets. The return of such items shall be made at or before the time of termination, or if that is not possible, as soon thereafter as is possible. In addition, Employee agrees at or before the time of termination, to provide to the Company all password and similar information which will be necessary or useful for the Company to access materials on which Employee worked or to otherwise continue in its business. Upon his fulfillment of the obligations set forth in this section, Employee shall execute an affidavit attesting to his compliance with this provision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Survival</u>. Employee's obligations under Sections 3(b), 4, 6, 8 and 12 of this Agreement shall continue during the course of his employment by the Company, shall survive the cessation of his employment, and shall continue indefinitely thereafter, unless explicitly stated otherwise herein. Employee's continuing obligations shall operate regardless of the circumstances of, or reasons for, the cessation of Employee's employment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Equitable Remedies</u>. Employee acknowledges that the Company will suffer irreparable damage if any provisions of this Agreement or the Confidentiality Agreement are not performed strictly in accordance with their terms or are otherwise breached, for which money damages could not adequately compensate the Company. Employee hereby expressly agrees that the Company shall be entitled as a matter of right to injunctive or other equitable relief, whether temporary, emergency, preliminary, prospective, or permanent, in addition to all other remedies permitted by law, to prevent a breach or violation by him and to secure enforcement of the provisions of this Agreement or the Confidentiality Agreement. Employee therefore consents to the issuance of injunctive relief, without the necessity of the Company posting a bond. Resort to such equitable relief, however, shall not constitute a waiver of any other rights or remedies which the Company may have.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Entire Agreement; No Modification</u>. This Agreement and the attached Confidentiality Agreement (Exhibit No. 1) constitute the entire agreement between the parties hereto and there are no other terms other than those contained herein. No variation or modification to the Agreement shall be deemed valid unless in writing and signed by the parties hereto and no discharge of the terms hereof shall be deemed valid unless by full performance of the parties hereto or by a writing signed by the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>No Waiver</u>. No waiver by the Company of any breach by Employee of any provision or condition of this Agreement by him to be performed shall be deemed a waiver of a breach of a similar or dissimilar provision or condition at the same time or any prior or subsequent time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Severability</u>. The parties acknowledge that the terms of this Agreement, including the terms of the Confidentiality Agreement, are fair and reasonable at the date signed by them. However, in light of the possibility of a change of conditions or differing interpretations by a court of what is fair and reasonable, the parties agree as follows: Each provision of this Agreement will be treated as a separate and independent clause. If any one or more of the terms, provisions, covenants or restrictions of this Agreement shall be determined by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated; further, if any one or more of the terms, provisions, covenants, and restrictions contained in this Agreement shall for any reason be determined by a court of competent jurisdiction to be excessively broad as to duration, geographical scope, activity or subject, it shall be construed, by limiting or reducing it, so as to be enforceable to the maximum extent compatible with then applicable law. The Company and Employee expressly stipulate that this Agreement is to be given the construction which renders its provisions valid and enforceable to the maximum extent (not exceeding its express terms) possible under applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Compliance with Section 409A</u>. It is the parties' intention that severance payments under this Agreement will be exempt from the requirements of Section 409A of the Internal Revenue Code, and guidance issued thereunder ("Section 409A") because they are short term deferrals under Treas. Reg. Sec. 1.409A-1(b)(4) or payments under a separation pay plan within the meaning of Treas. Reg. Sec. 1.409A-1(b)(9) and this Agreement shall be construed and administered in a manner consistent with such intent. For purposes of Section 409A, each payment under this Agreement will be treated as a separate payment. To the extent the payments under this Agreement are subject to Section 409A, the Agreement shall be interpreted in a manner that complies with section 409A and guidance under section 409A (collectively "Section 409A"). For example, payments on account of a termination of employment may only be made upon a "separation from service" as defined under Section 409A. In addition, if at the time of such termination of employment Employee is a "specified" employee under Section 409A, then any payment or payments of deferred compensation shall not be made or commenced until the first day following the earlier of (x) the expiration of the six (6)-month period measured from the date of the "separation from service"; or (y) the date of death following such separation from service.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Successors and Assigns</u>. This Agreement is a personal contract calling for the provision of unique services by Employee, and Employee's rights and obligations hereunder may not be sold, transferred, assigned, or pledged by Employee. In the event of any attempted assignment or transfer of rights hereunder by Employee contrary to the provisions hereof, the Company shall have no further liability for payments hereunder. This Agreement may be assigned, in whole or in part, by the Company to its successors and assigns, and Employee shall remain bound to fulfill Employee's obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Choice of Law</u>. This Agreement will be governed by and interpreted in accordance with the laws of the State of Minnesota, excluding its choice of law rules. Employee hereby consents to personal jurisdiction in the state and federal courts of Minnesota for any lawsuit filed there against him by the Company or its successors or assigns arising from or related to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>No Presumptions</u>. Each party acknowledges that such party has participated, with, at its option, the advice of counsel, in the preparation of this Agreement. The language of all provisions of this Agreement shall in all cases be construed as a whole, extending to it its fair meaning, and not strictly for or against either of the parties. The parties agree that they have jointly prepared and approved the language of the provisions of this Agreement and that should any dispute arise concerning the interpretation of any provision hereof, neither party shall be deemed the drafter nor shall any such language be presumptively construed in favor of or against either party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Headings</u>. The headings in this Agreement are for convenience of reference only and shall not control or affect the meaning or construction of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Counterparts</u>. This Agreement may be executed in several counterparts (and delivered by facsimile, "pdf" or other electronic means) and all so executed shall constitute one and the same agreement binding upon all of the parties hereto, notwithstanding that all parties are not signatory to the original or the same counterpart.

*[signature page follows]*

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**IN WITNESS WHEREOF**, the parties have caused this Agreement to be executed on the date first above written.

---

| | | |
|:---|:---|:---|
| **IMRICOR MEDICAL SYSTEMS, INC.** | **IMRICOR MEDICAL SYSTEMS, INC.** | **EMPLOYEE:** |
| By: | */s/ Steve Wedan* | */s/ Jonathon Gut* |
|  | Steve Wedan | Jonathon Gut |
|  | Chief Executive Officer |  |

---

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**EXHIBIT NO. 1**

**<u>CONFIDENTIALITY AGREEMENT</u>**

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## Exhibit 10.15

**Exhibit 10.15**

**<u>INDEMNIFICATION AGREEMENT</u>**

This Indemnification Agreement ("<u>Agreement</u>") is made as of __________, ____ by and between Imricor Medical Systems, Inc., a Delaware corporation (the "<u>Company</u>"), and _____________________ ("<u>Indemnitee</u>"). This Agreement supplements any and all previous agreements between the Company and Indemnitee covering the subject matter of this Agreement. Any conflict between this and any other agreement shall be construed in favor of indemnification.

**RECITALS**

WHEREAS, highly competent persons have become more reluctant to serve publicly-held corporations as directors and officers unless they are provided with adequate protection through insurance or adequate indemnification or both against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation;

WHEREAS, the Board of Directors of the Company (the "<u>Board</u>") has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities. Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions. At the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself. The Bylaws of the Company (the "<u>Bylaws</u>") require indemnification of the officers and directors of the Company. Indemnitee may also be entitled to indemnification pursuant to the General Corporation Law of the State of Delaware (the "<u>DGCL</u>"). The Bylaws and the DGCL expressly provide that the indemnification provisions set forth therein are not exclusive, and thereby contemplate that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect to indemnification;

WHEREAS, the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons;

WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company and its stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;

WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified;

WHEREAS, this Agreement is a supplement to and in furtherance of the Bylaws, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder;

WHEREAS, Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that he or she be so indemnified; and

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:

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Section 1. <u>Survival</u>. This Agreement shall continue in force after Indemnitee has ceased to serve as an officer or director of the Company, as provided in Section 14 hereof.

Section 2. <u>Definitions</u>. As used in this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) References to "agent" shall mean any person who is or was a director, officer, or employee of the Company or a subsidiary of the Company or other person authorized by the Company to act for the Company, to include such person serving in such capacity as a director, officer, employee, fiduciary or other official of another corporation, partnership, limited liability company, joint venture, trust or other enterprise at the request of, for the convenience of, or to represent the interests of the Company or a subsidiary of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A "<u>Change in Control</u>" shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) *Acquisition of Stock by Third Party*. Any Person (as defined below) is or becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing thirty-three percent (33%) or more of the combined voting power of the Company's then outstanding securities unless the change in relative Beneficial Ownership of the Company's securities by any Person results solely from a reduction in the aggregate number of outstanding shares of securities entitled to vote generally in the election of directors, excluding the sale of securities to Imricor Medical Systems SaleCo, Inc. as a result of the initial public offering of the Company's securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) *Change in Board of Directors*. During any period of two (2) consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in Sections 2(b)(i), 2(b)(iii) or 2(b) (iv)) whose election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute at least a majority of the members of the Board;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Corporate Transactions. The effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 51% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such surviving entity; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Insolvency. The approval by the stockholders of the Company of a restructuring pursuant to title 11 of the Unites States Code, a complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company's assets.

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For purposes of this Section 2(b), the following terms shall have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) "<u>Person</u>" means natural person, company, government, or political subdivision, agency, or instrumentality of a government.; provided, however, that Person shall exclude (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, and (iii) any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) "<u>Beneficial Owner</u>" means any Person or group of Persons who, either directly or indirectly has the power to vote or influence any vote regarding the Company's securities; provided, however, that Beneficial Owner shall exclude any Person otherwise becoming a Beneficial Owner by reason of the stockholders of the Company approving a merger or other transaction of the Company with another entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Corporate Status</u>" describes the status of a person who is or was a director, officer, employee or agent of the Company or of any other corporation, limited liability company, partnership or joint venture, trust or other enterprise which such person is or was serving at the request of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Disinterested Director</u>" shall mean a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Enterprise</u>" shall mean the Company and any other corporation, limited liability company, partnership, joint venture, trust or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, trustee, partner, managing member, employee, agent or fiduciary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>Expenses</u>" shall include all reasonable attorneys' fees, retainers, court costs, transcript costs, fees of experts and other professionals, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, any federal, state, local or foreign taxes imposed on Indemnitee as a result of the actual or deemed receipt of any payments under this Agreement, ERISA excise taxes and penalties, and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding. Expenses also shall include (i) Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedeas bond, or other appeal bond or its equivalent, and (ii) for purposes of Section 12(d) only, Expenses incurred by Indemnitee in connection with the interpretation, enforcement or defense of Indemnitee's rights under this Agreement, by litigation or otherwise. The parties agree that for the purposes of any advancement of Expenses for which Indemnitee has made written demand to the Company in accordance with this Agreement, all Expenses included in such demand that are certified by affidavit of Indemnitee's counsel as being reasonable shall be presumed conclusively to be reasonable. Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Independent Counsel</u>" shall mean a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent: (i) the Company or Indemnitee in any matter material to either such party (other than as Independent Counsel with respect to other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term "Independent Counsel" shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee's rights under this Agreement. The Company agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The term "<u>Proceeding</u>" shall include any threatened, pending or completed action, suit, claim, counterclaim, cross claim, arbitration, mediation, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative, legislative, or investigative (formal or informal) nature, including any appeal therefrom, in which Indemnitee was, is or will be involved as a party, potential party, non-party witness or otherwise by reason of the fact that Indemnitee is or was a director or officer of the Company, by reason of any action taken by Indemnitee (or a failure to take action by Indemnitee) or of any action (or failure to act) while acting pursuant to Indemnitee's Corporate Status, in each case whether or not serving in such capacity at the time any liability or Expense is incurred for which indemnification, reimbursement, or advancement of Expenses can be provided under this Agreement. If the Indemnitee believes in good faith that a given situation may lead to or culminate in the institution of a Proceeding, this shall be considered a Proceeding under this paragraph.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Reference to "other enterprise" shall include employee benefit plans; references to "fines" shall include any excise tax assessed with respect to any employee benefit plan; references to "serving at the request of the Company" shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner he reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in manner "not opposed to the best interests of the Company" as referred to in this Agreement.

Section 3. <u>Indemnity of Indemnitee</u>. The Company agrees to hold harmless and indemnify the Indemnitee to the fullest extent permitted by law, as such may be amended from time to time. In furtherance of the foregoing indemnification, and without limiting the generality thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Indemnity in Third-Party Proceedings</u>. The Company shall hold harmless and indemnify Indemnitee in accordance with the provisions of this Section 3(a) if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor. Pursuant to this Section 3(a), Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses, judgments, fines and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines and amounts paid in settlement) actually and reasonably incurred by Indemnitee or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal Proceeding had no reasonable cause to believe that his or her conduct was unlawful. The parties hereto intend that this Agreement shall provide to the fullest extent permitted by law for indemnification in excess of that expressly permitted by statute, including, without limitation, any indemnification provided by the Company's Certificate of Incorporation, the Bylaws, vote of its stockholders or disinterested directors or applicable law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Indemnity in Proceedings by or in the Right of the Company</u>. The Company shall hold harmless and indemnify Indemnitee in accordance with the provisions of this Section 3(b) if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor, including but not limited to derivative claims asserted by creditors or shareholders of the Company or asserted by others. Pursuant to this Section 3(b), Indemnitee shall be indemnified to the fullest extent permitted by applicable law against all Expenses actually and reasonably incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company. No indemnification for Expenses shall be made under this Section 3(b) in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court to be liable to the Company, unless and only to the extent that the Delaware Court (as hereinafter defined) or any court in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Indemnification for Expenses of a Party Who is Wholly or Partly Successful</u>. Notwithstanding any other provisions of this Agreement, to the fullest extent permitted by applicable law and to the extent that Indemnitee is a party to (or a participant in) and is successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection with or related to each successfully resolved claim, issue or matter to the fullest extent permitted by law. For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

Section 4. <u>Indemnification for Expenses of a Witness</u>. Notwithstanding any other provision of this Agreement, to the fullest extent permitted by applicable law and to the extent that Indemnitee is, by reason of his Corporate Status, a witness or otherwise asked to participate in any Proceeding to which Indemnitee is not a party, Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee or on Indemnitee's behalf in connection therewith.

Section 5. <u>Partial Indemnification</u>. If Indemnitee is entitled under any provision of this Agreement to indemnification by the Company for some or a portion of Expenses, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion thereof to which Indemnitee is entitled.

Section 6. <u>Additional Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notwithstanding any limitation in Section 3 , the Company shall indemnify Indemnitee to the fullest extent permitted by applicable law if Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines and amounts paid in settlement (including all interest, assessments and other charges paid or payable in connection with or in respect of such Expenses, judgments, fines and amounts paid in settlement) actually and reasonably incurred by Indemnitee in connection with the Proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) For purposes of Section 6(a), the meaning of the phrase "to the fullest extent permitted by applicable law" shall include, but not be limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to the fullest extent permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL, and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers and directors.

Section 7. <u>Exclusions</u>. Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnification payment in connection with any claim made against Indemnitee:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) for (i) an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company under the Australian Securities Exchange Listing Rules or similar provisions of, United States federal statutory law, state statutory law or common law, or (ii) any reimbursement of the Company by the Indemnitee of any bonus or other incentive-based or equity-based compensation or of any profits realized by the Indemnitee from the sale of securities of the Company, as required in each case under the Australian Securities Exchange Listing Rules (including any such reimbursements that arise from an accounting restatement of the Company pursuant to Section 304 of the Sarbanes-Oxley Act of 2002 (as amended, the "<u>Sarbanes-Oxley Act</u>"), or the payment to the Company of profits arising from the purchase and sale by Indemnitee of securities in violation of Section 306 of the Sarbanes-Oxley Act); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) except as provided in Section 12(d) of this Agreement, in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.

Section 8. <u>Advances of Expenses</u>. Notwithstanding any provision of this Agreement to the contrary (other than Section 12(d)), the Company shall advance, to the extent not prohibited by law, the Expenses incurred by Indemnitee in connection with any Proceeding (or any part of any Proceeding) not initiated by Indemnitee, and such advancement shall be made within thirty (30) days after the receipt by the Company of a statement or statements requesting such advances from time to time, whether prior to or after final disposition of any Proceeding. Advances shall be unsecured and interest free. Advances shall be made without regard to Indemnitee's ability to repay the Expenses and without regard to Indemnitee's ultimate entitlement to indemnification under the other provisions of this Agreement. In accordance with Section 12(d), advances shall include any and all reasonable Expenses incurred pursuing an action to enforce this right of advancement, including Expenses incurred preparing and forwarding statements to the Company to support the advances claimed. The Indemnitee shall qualify for advances upon the execution and delivery to the Company of this Agreement, which shall constitute an undertaking providing that the Indemnitee undertakes to repay the amounts advanced (without interest) to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company. No other form of undertaking shall be required other than the execution of this Agreement. This Section 8 shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 7.

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Section 9. <u>Procedure for Notification and Defense of Claim</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Indemnitee shall notify the Company in writing of any matter with respect to which Indemnitee intends to seek indemnification or advancement of Expenses hereunder as soon as reasonably practicable following the receipt by Indemnitee of written notice thereof. The written notification to the Company shall include a description of the nature of the Proceeding and the facts underlying the Proceeding. To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification following the final disposition of such Proceeding. The omission by Indemnitee to notify the Company hereunder will not relieve the Company from any liability which it may have to Indemnitee hereunder or otherwise than under this Agreement, and any delay in so notifying the Company shall not constitute a waiver by Indemnitee of any rights under this Agreement, unless, and only to the extent that, the Company did not otherwise learn of such action or request, as the case may be, and such failure results in forfeiture by the Company of substantial defenses, rights or insurance. The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has requested indemnification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Company will be entitled to participate in the Proceeding at its own expense, provided that Indemnitee provides signed, written consent to such participation, which shall not be unreasonably withheld.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as otherwise provided below, the Company may, at its option and jointly with any other indemnifying party similarly notified and electing to assume such defense, assume defense of the Proceeding, with counsel reasonably satisfactory to Indemnitee, provided that Indemnitee provides signed, written consent to such assumption, which shall not be unreasonably withheld. Upon the Company delivering to Indemnitee written notice of its election to assume such defense, and Indemnitee providing signed, written consent thereto, the Company will not be liable to Indemnitee under this Agreement for any legal or other expenses subsequently incurred by Indemnitee in connection with the defense thereof, except as provided in subsections 9(c)(i)-(iv) below. Indemnitee shall have the right to employ separate counsel in such Proceeding but the fees and expenses of such counsel incurred after notice from the Company of its assumption of the defense thereof, and Indemnitee's signed, written consent thereto, shall be at the expense of Indemnitee unless (i) the employment of counsel by Indemnitee has been authorized by the Company, (ii) it is reasonably determined at any time before or during the course of the Proceeding that the use of counsel chosen by the Company to represent Indemnitee would present or presents, as the case may be, such counsel with an actual or potential conflict, (iii) it is reasonably determined at any time before or during the course of the Proceeding that the use of counsel chosen by the Company to represent Indemnitee would be or is, as the case may be, precluded under the applicable standards of professional conduct then prevailing, or (iv) the Company shall not in fact have employed counsel to assume the defense of such Proceeding, or fails to continue to retain such counsel to assume the defense of such Proceeding, in each of which cases the fees and expenses of Indemnitee's separate counsel shall be at the expense of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company shall not be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any action or claim effected without its prior written consent, which shall not be unreasonably withheld. The Company shall be permitted to settle any action except that it shall not settle any action or claim in any manner that would impose any expenses, losses, liabilities, judgments, fines, or penalties (whether civil or criminal,) on Indemnitee, including without limitation a prohibition against Indemnitee serving as an officer or a director of a listed company, without Indemnitee's prior written consent.

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Section 10. <u>Procedure Upon Application for Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Upon written request by Indemnitee for indemnification pursuant to Section 9(a), a determination, if required by applicable law, with respect to Indemnitee's entitlement thereto shall be made in the specific case: (i) if a Change in Control shall have occurred, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; or (ii) if a Change in Control shall not have occurred, (A) by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (C) if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee or (D) if so directed by the Board, by the stockholders of the Company; and, if it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination. Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee's entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination. Any costs or Expenses (including attorneys' fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee's entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom. The Company promptly will advise Indemnitee in writing with respect to any determination that Indemnitee is or is not entitled to indemnification, including a description of any reason or basis for which indemnification has been denied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 10(a) hereof, the Independent Counsel shall be selected as provided in this Section 10(b). If a Change in Control shall not have occurred, the Independent Counsel shall be selected by the Board, and the Company shall give written notice to Indemnitee advising him of the identity of the Independent Counsel so selected. If a Change in Control shall have occurred, the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board, in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected. In either event, Indemnitee or the Company, as the case may be, may, within ten (10) days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; <u>provided, however,</u> that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of "Independent Counsel" as defined in Section 2 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or the Delaware Court has determined that such objection is without merit. If, within twenty (20) days after the later of submission by Indemnitee of a written request for indemnification pursuant to Section 9(a) hereof and the final disposition of the Proceeding, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition the Delaware Court for resolution of any objection which shall have been made by the Company or Indemnitee to the other's selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by such court or by such other person as such court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 10(a) hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 12(a) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).

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Section 11. <u>Presumptions and Effect of Certain Proceedings</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall, to the fullest extent not prohibited by law, presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 9(a) of this Agreement, and the Company shall, to the fullest extent not prohibited by law, have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption. Neither the failure of the Company (including by its directors or Independent Counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or Independent Counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to Section 12(e), if the person, persons or entity empowered or selected under Section 10 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, or if the determination is to be made by Independent Counsel pursuant to Section 10(a) of this Agreement, within sixty (60) days after (i) the Independent Counsel shall have been selected and not objected to or (ii) all objections to the appointment of a selected Independent Counsel have been resolved by the Delaware Court or agreement between the Company and Indemnitee, or (iii) the Independent Counsel has been appointed by the Delaware Court or a person designated to do so by the Delaware Court, the requisite determination of entitlement to indemnification shall, to the fullest extent not prohibited by law, be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; provided, however, that such 60-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto; and provided, further, that the foregoing provisions of this Section 11(b) shall not apply if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 10(a) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination the Board has resolved to submit such determination to the stockholders for their consideration at an annual meeting thereof to be held within seventy-five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having been so called and such determination is made thereat.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of <u>nolo contendere</u> or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his or her conduct was unlawful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee's action is based on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the directors or officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with the reasonable care by the Enterprise. The provisions of this Section 11(d) shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The knowledge and/or actions, or failure to act, of any director, officer, trustee, partner, managing member, fiduciary, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.

Section 12. <u>Remedies of Indemnitee</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to Section 12(e), in the event that (i) a determination is made pursuant to Section 10 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 8 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 10(a) of this Agreement within ninety (90) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 3, or Section 5 or the last sentence of Section 10(a) of this Agreement within ten (10) days after receipt by the Company of a written request therefor, (v) payment of indemnification pursuant to Section 3 or 6 of this Agreement is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, or (vi) in the event that the Company or any other person takes or threatens to take any action to declare this Agreement void or unenforceable, or institutes any litigation or other action or Proceeding designed to deny, or to recover from, the Indemnitee the benefits provided or intended to be provided to the Indemnitee hereunder, Indemnitee shall be entitled to an adjudication by the Delaware Court of his entitlement to such indemnification or advancement of Expenses. Alternatively, Indemnitee, at his option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association and in such event the Company and Indemnitee agree to fully and finally resolve by such arbitration the matter subject to the demand for arbitration, and the award of the arbitrator shall be final and binding on both parties and may be enforced in any court having jurisdiction over the parties hereto. Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within 180 days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 12(a); <u>provided, however,</u> that the immediately preceding clause in this sentence shall not apply in respect of a proceeding brought by Indemnitee to enforce his rights under Section 3(c) of this Agreement. The Company shall not oppose Indemnitee's right to seek any such adjudication or award in arbitration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that a determination shall have been made pursuant to Section 10(a) of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 12 shall be conducted in all respects as a <u>de novo</u> trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination. In any judicial proceeding or arbitration commenced pursuant to this Section 12 the Company shall have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If a determination shall have been made pursuant to Section 10(a) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 12, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee's statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company shall, to the fullest extent not prohibited by law, be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 12 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement. It is the intent of the Company that, to the fullest extent permitted by law, the Indemnitee not be required to incur legal fees or other Expenses associated with the interpretation, enforcement or defense of Indemnitee's rights under this Agreement by litigation, arbitration or otherwise because the cost and expense thereof would substantially detract from the benefits intended to be extended to the Indemnitee hereunder. The Company shall, to the fullest extent permitted by law, indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request therefor) advance, to the extent not prohibited by law, such Expenses to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advance of Expenses from the Company under this Agreement or under any directors' and officers' liability insurance policies maintained by the Company if, in the case of indemnification, Indemnitee is wholly successful on the underlying claims; if Indemnitee is not wholly successful on the underlying claims, then such indemnification shall be only to the extent Indemnitee is successful on such underlying claims or otherwise as permitted by law, whichever is greater.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Notwithstanding anything in this Agreement to the contrary, no determination as to entitlement of Indemnitee to indemnification under this Agreement shall be required to be made prior to the final disposition of the Proceeding.

Section 13. <u>Non-exclusivity; Survival of Rights; Insurance; Subrogation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable law, the Company's Certificate of Incorporation, the Bylaws, any agreement, a vote of stockholders or a resolution of directors, or otherwise. No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal. To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change. No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents of the Enterprise, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy or policies. If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of such claim or of the commencement of a Proceeding, as the case may be, to the insurers in accordance with the procedures set forth in the respective policies. The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such Proceeding in accordance with the terms of such policies. Nothing in this Section 13 shall be construed to permit the Company to delay advancement of Expenses or payment of amounts in indemnification, to which Indemnitee is otherwise entitled under this Agreement, because such insurance coverage is in place and a claim has been made and is pending under such policies of insurance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable (or for which advancement is provided hereunder) hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company's obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer, trustee, partner, managing member, fiduciary, employee or agent of any other corporation, limited liability company, partnership, joint venture, trust, employee benefit plan or other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of Expenses from such other corporation, limited liability company, partnership, joint venture, trust or other enterprise.

Section 14. <u>Duration of Agreement</u>. All agreements and obligations of the Company contained herein shall continue during the period Indemnitee is a director, officer, employee or agent of the Company and thereafter so long as Indemnitee shall be subject to any possible Proceeding or any possible action to interpret, enforce or defend Indemnitee's rights under this Agreement by litigation, arbitration or otherwise. The indemnification and advancement of Expenses rights provided by or granted pursuant to this Agreement shall be binding upon and be enforceable by the parties hereto and their respective successors and assigns (including any direct or indirect successor by purchase, merger, consolidation or otherwise to all or substantially all of the business or assets of the Company), shall continue as to an Indemnitee who has ceased to be a director, officer, employee or agent of the Company or of any other Enterprise, and shall inure to the benefit of Indemnitee and his or her spouse, assigns, heirs, devisees, executors and administrators and other legal representatives.

Section 15. <u>Injunctive Relief</u>. The Company, and the Indemnitee agree herein that a monetary remedy for breach of this Agreement, at some later date, may be inadequate, impracticable and difficult of proof, and further agree that such breach may cause the Indemnitee and the Company irreparable harm. Accordingly, the parties hereto agree that the parties may enforce this Agreement by seeking injunctive relief and/or specific performance hereof, without any necessity of showing actual damage or irreparable harm and that by seeking injunctive relief and/or specific performance, they shall not be precluded from seeking or obtaining any other relief to which they may be entitled. The Company and the Indemnitee further agree that they shall be entitled to such specific performance and injunctive relief, including temporary restraining orders, preliminary injunctions and permanent injunctions, without the necessity of posting bonds or other undertaking in connection herewith. The Company and the Indemnitee acknowledge that in the absence of a waiver, a bond or undertaking may be required by the Chancery Court of the State of Delaware, and they hereby waive any such requirement of such a bond or undertaking.

Section 16. <u>Severability</u>. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

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Section 17. <u>Enforcement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director or officer of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof; provided, however, that this Agreement is a supplement to and in furtherance of the Company's Certificate of Incorporation, the Bylaws and applicable law, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder.

Section 18. <u>Modification and Waiver</u>. No supplement, modification or amendment of this Agreement shall be binding unless expressed in writing stating the express intent to amend, modify or supplement this Agreement and executed by the parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement nor shall any waiver constitute a continuing waiver.

Section 19. <u>Notice by Indemnitee</u>. Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder. The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise, unless, and only to the extent that, the Company did not otherwise learn of such action or request, as the case may be, and such failure results in forfeiture by the Company of substantial defenses, rights or insurance.

Section 20. <u>Notices</u>. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given if (a) delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, on the date so delivered and receipted for, (b) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed, (c) dispatched by reputable overnight courier and receipted for by the party to whom said notice or other communication shall have been directed, on the date receipted for or (d) sent by facsimile transmission, with receipt of oral confirmation that such transmission has been received, on the date of such transmission:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee shall provide to the Company.

If to the Company to:

Imricor Medical Systems, Inc.

Attn: Chief Executive Officer

400 Gateway Blvd.

Burnsville, Minnesota 55337

USA

or to any other address as may have been furnished to Indemnitee by the Company.

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Section 21. <u>Contribution</u>. To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (i) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (ii) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).

Section 22. <u>Applicable Law and Consent to Jurisdiction</u>. This Agreement and the legal relations between the parties hereto shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules, except the provisions of Section 14(a) providing for arbitration of disputes which shall be governed by, and construed and enforced in accordance with, the Federal Arbitration Act. Except with respect to any arbitration commenced by Indemnitee pursuant to Section 12(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (i) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Chancery Court of the State of Delaware (the "<u>Delaware Court</u>"), and not in any other state or federal court in the United States of America or any court in any other country, (ii) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (iii) appoint, to the extent such party is not otherwise subject to service of process in the State of Delaware, irrevocably Corporate Service Company, 251 Little Falls Drive, Wilmington DE 19808 as its agent in the State of Delaware for acceptance of legal process in connection with any such action or proceeding against such party with the same legal force and validity as if served upon such party personally within the State of Delaware, (iv) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (v) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum. The parties hereto, for purposes only of enforcement of any arbitration award resulting from arbitration under the provisions of Section 12(a), (a) consent to the personal jurisdiction of the state and federal courts sitting in the State of Delaware, provided such court then also would have subject matter jurisdiction over such enforcement action, (b) appoint, to the extent such party is not otherwise subject to service of process in the State of Delaware, irrevocably Corporate Service Company, 251 Little Falls Drive, Wilmington DE 19808 as its agent in the State of Delaware for acceptance of legal process in connection with any such action to enforce such arbitration award with the same legal force and validity as if served upon such party personally within the State of Delaware, (iv) waive any objection to the laying of venue of any such action or proceeding in any such federal or Delaware state court, and (v) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in any such federal or Delaware state court has been brought in an improper or inconvenient forum.

Section 23. <u>Identical Counterparts</u>. This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement. Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.

Section 24. <u>Miscellaneous</u>. Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate. The headings of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.

Section 25. <u>Counterparts</u>. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original document, and all of which, together with this writing, shall be deemed one instrument. This Agreement may be executed and delivered by facsimile or pdf email and upon such delivery the facsimile or pdf signature will be deemed to have the same effect as if the original signature had been delivered to the other party.

*[signature page follows]*

------

IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year first above written.

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| | |
|:---|:---|
| Imricor Medical Systems, Inc. | Indemnitee: |
| By: | By: |
| Title: | Title: |
|  | Address: |

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## Exhibit 10.16

**Exhibit 10.16**

**IMRICOR MEDICAL SYSTEMS, INC.**

**2019 EQUITY INCENTIVE PLAN**

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**Table of Contents**

1. Purpose of Plan. 1

2. Definitions. 1

3. Plan Administration. 6

4. Shares Available for Issuance. 8

5. Participation. 10

6. Options. 10

7. Stock Appreciation Rights. 11

8. Restricted Stock Awards, Restricted Stock Units and Deferred Stock Units. 12

9. Performance Awards. 14

10. Non-Employee Director Awards. 16

11. Other Stock-Based Awards. 16

12. Dividend Equivalents. 16

13. Effect of Termination of Employment or Other Service. 17

14. Payment of Withholding Taxes. 20

15. Change in Control. 20

16. Rights of Eligible Recipients and Participants; Transferability. 22

17. Securities Law and Other Restrictions. 24

18. Deferred Compensation; Compliance with Section 409A. 24

19. Amendment, Modification and Termination. 25

20. Substituted Awards. 25

21. Effective Date and Duration of this Plan. 25

22. Miscellaneous. 26

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**IMRICOR MEDICAL SYSTEMS, INC.**<br> **2019 EQUITY INCENTIVE PLAN**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Purpose of Plan</u>.

The purpose of the Imricor Medical Systems, Inc. 2019 Equity Incentive Plan (this "<u>Plan</u>") is to advance the interests of Imricor Medical Systems, Inc., a Delaware corporation (the "<u>Company</u>"), and its stockholders by enabling the Company and its Subsidiaries to attract and retain qualified individuals to perform services for the Company and its Subsidiaries, providing incentive compensation for such individuals that is linked to the growth and profitability of the Company and increases in stockholder value and aligning the interests of such individuals with the interests of its stockholders through opportunities for equity participation in the Company. This Plan is intended to replace the Imricor Medical Systems, Inc. 2016 Stock Option Plan (the "<u>Prior Plan</u>"); <u>provided</u>, <u>however</u>, that awards outstanding under the Prior Plan or the Company's 2006 Stock Option Plan as of the Effective Date will remain outstanding in accordance with their terms. After the Effective Date, no more grants of awards will be made under the Prior Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Definitions</u>.

The following terms will have the meanings set forth below, unless the context clearly otherwise requires. Terms defined elsewhere in this Plan will have the same meaning throughout this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 "<u>Adverse Action</u>" means any action or conduct by a Participant that the Committee, in its sole discretion, determines to be injurious, detrimental, prejudicial or adverse to the interests of the Company or any Subsidiary, including: (a) disclosing confidential information of the Company or any Subsidiary to any person not authorized by the Company or Subsidiary to receive it, (b) engaging, directly or indirectly, in any commercial activity that in the judgment of the Committee competes with the business of the Company or any Subsidiary or (c) interfering with the relationships of the Company or any Subsidiary and their respective employees, independent contractors, customers, prospective customers and vendors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 "<u>Affiliate</u>" means, with respect to any Person, any other Person directly or indirectly controlling, controlled by or under common control with, such Person where "control" will have the meaning given such term under Rule 405 of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 "<u>Applicable Law</u>" means any applicable law, including without limitation, (a) provisions of the Code, the Securities Act, the Exchange Act and any rules or regulations thereunder; (b) corporate, securities, tax or other laws, statutes, rules, requirements or regulations, whether federal, state, local or foreign; and (c) rules of any securities exchange, national market system or automated quotation system on which the shares of Common Stock (or instruments representing the shares of Common Stock) are listed, quoted or traded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 "<u>Award</u>" means, individually or collectively, an Option, Stock Appreciation Right, Restricted Stock Award, Restricted Stock Unit, Deferred Stock Unit, Performance Award, Non-Employee Director Award, or Other Stock-Based Award, in each case granted to an Eligible Recipient pursuant to this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 "<u>Award Agreement</u>" means either: (a) a written or electronic (as provided in Section 22.7) agreement entered into by the Company and a Participant setting forth the terms and provisions applicable to an Award granted under this Plan, including any amendment or modification thereof, or (b) a written or electronic (as provided in Section 22.7) statement issued by the Company to a Participant describing the terms and provisions of such an Award, including any amendment or modification thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 "<u>Board</u>" means the Board of Directors of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 "<u>Broker Exercise Notice</u>" means a written notice pursuant to which a Participant, upon exercise of an Option, irrevocably instructs a broker or dealer to sell a sufficient number of shares of Common Stock to pay all or a portion of the exercise price of the Option or any related withholding tax obligations and remit such sums to the Company and directs the Company to deliver shares of Common Stock to be issued upon such exercise directly to such broker or dealer or its nominee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 "<u>Cause</u>" means, unless otherwise provided in an Award Agreement, (a) "Cause" as defined in any employment, consulting, severance or similar agreement between the Participant and the Company or one of its Subsidiaries or Affiliates (an "<u>Individual Agreement</u>"), or (b) if there is no such Individual Agreement or if it does not define Cause: (i) dishonesty, fraud, misrepresentation, embezzlement or deliberate injury or attempted injury, in each case related to the Company or any Subsidiary; (ii) any unlawful or criminal activity of a serious nature; (iii) any intentional and deliberate breach of a duty or duties that, individually or in the aggregate, are material in relation to the Participant's overall duties; (iv) any material breach by a Participant of any employment, service, confidentiality, non-compete or non-solicitation agreement entered into with the Company or any Subsidiary; or (v) before a Change in Control, such other events as will be determined by the Committee. Before a Change in Control, the Committee will, unless otherwise provided in an Individual Agreement, have the sole discretion to determine whether "Cause" exists with respect to subclauses (i), (ii), (iii), (iv) or (v) above, and its determination will be final.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 "<u>Change in Control</u>" means, unless otherwise provided in an Award Agreement or any Individual Agreement, and except as provided in Section 18, an event described in Section 15.1 of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 "<u>Code</u>" means the Internal Revenue Code of 1986, as amended. Any reference to a section of the Code herein will be deemed to include a reference to any applicable regulations thereunder and any successor or amended section of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 "<u>Committee</u>" means the Board or, if the Board so delegates, the Compensation Committee of the Board or a subcommittee thereof, or any other committee delegated authority by the Board to administer this Plan. If the Board determines appropriate (having regard to all Applicable Laws and any stock exchange or market on which the Common Stock or instruments representing the Common Stock are traded or quoted), such committee may be comprised solely of directors designated by the Board to administer this Plan who are (a) "non-employee directors" within the meaning of Rule 16b-3 under the Exchange Act, and (b) "independent directors" within the meaning of the rules of the NYSE American (or other applicable exchange or market on which the Common Stock may be traded or quoted). The members of the Committee will be appointed from time to time by and will serve at the discretion of the Board. Any action duly taken by the Committee will be valid and effective, whether or not the members of the Committee at the time of such action are later determined not to have satisfied the requirements of membership provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 "<u>Common Stock</u>" means the common stock of the Company, par value $0.01 per share, or the number and kind of shares of stock or other securities into which such Common Stock may be changed in accordance with Section 4.4 of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.13 "<u>Company</u>" means Imricor Medical Systems, Inc., a Delaware corporation, and any successor thereto as provided in Section 22.5 of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.14 "<u>Consultant</u>" means a person engaged to provide consulting or advisory services (other than as an Employee or a Director) to the Company or any Subsidiary that: (a) are not in connection with the offer and sale of the Company's securities in a capital raising transaction and (b) do not directly or indirectly promote or maintain a market for the Company's securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.15 "<u>Deferred Stock Unit</u>" means a right granted to an Eligible Recipient pursuant to Section 8 of this Plan to receive shares of Common Stock (or the equivalent value in cash or other property if the Committee so provides) at a future time as determined by the Committee, or as determined by the Participant within guidelines established by the Committee in the case of voluntary deferral elections.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.16 "<u>Director</u>" means a member of the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.17 "<u>Disability</u>" means, unless otherwise provided in an Award Agreement, with respect to a Participant who is a party to an Individual Agreement, which agreement contains a definition of "disability" or "permanent disability" (or words of like import) for purposes of termination of employment thereunder by the Company, "disability" or "permanent disability" as defined in the most recent of such agreements; or in all other cases, means the disability of the Participant such as would entitle the Participant to receive disability income benefits pursuant to the long-term disability plan of the Company or Subsidiary then covering the Participant or, if no such plan exists or is applicable to the Participant, the permanent and total disability of the Participant within the meaning of Section 22(e)(3) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.18 "<u>Dividend Equivalents</u>" has the meaning set forth in Section 3.2(l) of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.19 "<u>Effective Date</u>" means February 14, 2019 or such later date as this Plan is initially approved by the Company's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.20 "<u>Eligible Recipients</u>" means all Employees, all Non-Employee Directors and all Consultants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.21 "<u>Employee</u>" means any individual performing services for the Company or a Subsidiary and designated as an employee of the Company or a Subsidiary on the payroll records thereof. An Employee will not include any individual during any period he or she is classified or treated by the Company or Subsidiary as an independent contractor, a consultant, or any employee of an employment, consulting or temporary agency or any other entity other than the Company or Subsidiary, without regard to whether such individual is subsequently determined to have been, or is subsequently retroactively reclassified as a common-law employee of the Company or Subsidiary during such period. An individual will not cease to be an Employee in the case of: (a) any leave of absence approved by the Company, or (b) transfers between locations of the Company or between the Company or any Subsidiaries. For purposes of Incentive Stock Options, no such leave may exceed ninety (90) days, unless reemployment upon expiration of such leave is guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved by the Company or a Subsidiary, as applicable, is not so guaranteed, then three (3) months following the ninety-first (91st) day of such leave, any Incentive Stock Option held by a Participant will cease to be treated as an Incentive Stock Option and will be treated for tax purposes as a Non-Statutory Stock Option. Neither service as a Director nor payment of a Director's fee by the Company will be sufficient to constitute "employment" by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.22 "<u>Exchange Act</u>" means the Securities Exchange Act of 1934, as amended. Any reference to a section of the Exchange Act herein will be deemed to include a reference to any applicable rules and regulations thereunder and any successor or amended section of the Exchange Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.23 "<u>Fair Market Value</u>" means, with respect to the Common Stock, as of any date a price that is based on the opening, closing, actual, high, low, or average selling prices of a share of Common Stock as reported on the NYSE American or other established stock exchange (or exchanges) or if the Common Stock is not so listed, admitted to unlisted trading privileges or reported on any national exchange, then as reported by the OTC Bulletin Board, OTC Markets or other comparable quotation service, on the applicable date, the preceding trading day, the next succeeding trading day, or an average of trading days that is within thirty (30) days before or after the applicable valuation date, as determined by the Committee in its discretion, provided that with respect to establishing the exercise price of an Option or Stock Appreciation Right, the Committee shall irrevocably commit to grant such Award prior to the period during which the Fair Market Value is determined. Unless the Committee determines otherwise, Fair Market Value shall be deemed to be equal to the closing sale price of the Common Stock as of the immediately preceding trading date at the end of the regular trading session, as reported by the NYSE American or any national securities exchange on which the Common Stock is then listed (or, if no shares were traded on such date, as of the next preceding date on which there was such a trade) or if the Common Stock is not so listed, admitted to unlisted trading privileges or reported on any national exchange, the closing sale price as of the immediately preceding trading date at the end of the regular trading session, as reported by the OTC Bulletin Board, OTC Markets or other comparable quotation service (or, if no shares were traded or quoted on such date, as of the next preceding date on which there was such a trade or quote). In the event the Common Stock is not publicly traded at the time a determination of its value is required to be made hereunder, the determination of Fair Market Value shall be made by the Committee in such manner as it deems appropriate and in good faith in the exercise of its reasonable discretion, and consistent with the definition of "fair market value" under Section 409A of the Code. If determined by the Committee, such determination will be final, conclusive and binding for all purposes and on all persons, including the Company, the stockholders of the Company, the Participants and their respective successors-in-interest. No member of the Committee will be liable for any determination regarding the fair market value of the Common Stock that is made in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.24 "<u>Grant Date</u>" means the date an Award is granted to a Participant pursuant to this Plan and as determined pursuant to Section 5 of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.25 "<u>Incentive Stock Option</u>" means a right to purchase Common Stock granted to an Employee pursuant to Section 6 of this Plan that is designated as and intended to meet the requirements of an "incentive stock option" within the meaning of Section 422 of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.26 "<u>Individual Agreement</u>" has the meaning set forth in Section 2.8 of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.27 "<u>Non-Employee Director</u>" means a Director who is not an Employee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.28 "<u>Non-Employee Director Award</u>" means any Award granted, whether singly, in combination, or in tandem, to an Eligible Recipient who is a Non-Employee Director, pursuant to such applicable terms, conditions and limitations as the Board or Committee may establish in accordance with this Plan, including any Non-Employee Director Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.29 "<u>Non-Employee Director Option</u>" means a Non-Statutory Stock Option granted to a Non-Employee Director pursuant to Section 10 of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.30 "<u>Non-Statutory Stock Option</u>" means a right to purchase Common Stock granted to an Eligible Recipient pursuant to Section 6 of this Plan that is not intended to meet the requirements of or does not qualify as an Incentive Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.31 "<u>Option</u>" means an Incentive Stock Option or a Non-Statutory Stock Option, including a Non-Employee Director Option.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.32 "<u>Other Stock-Based Award</u>" means an Award, denominated in Shares, not otherwise described by the terms of this Plan, granted pursuant to Section 11 of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.33 "<u>Participant</u>" means an Eligible Recipient who receives one or more Awards under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.34 "<u>Performance Award</u>" means a right granted to an Eligible Recipient pursuant to Section 9 of this Plan to receive an amount of cash, number of shares of Common Stock, or a combination of both, contingent upon and the value of which at the time it is payable is determined as a function of the extent of the achievement of one or more Performance Goals during a specified Performance Period or the achievement of other objectives during a specified period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.35 "<u>Performance Goals</u>" mean with respect to any applicable Award, one or more targets, goals or levels of attainment required to be achieved during the specified Performance Period, as set forth in the related Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.36 "<u>Performance Period</u>" means the period of time, as determined by the Committee, during which the Performance Goals must be met in order to determine the degree of payout or vesting with respect to an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.37 "<u>Period of Restriction</u>" means the period when a Restricted Stock Award or Restricted Stock Units are subject to a substantial risk of forfeiture (based on the passage of time, the achievement of Performance Goals, or upon the occurrence of other events as determined by the Committee, in its discretion), as provided in Section 8 of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.38 "<u>Person</u>" means an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust, unincorporated association, joint venture, governmental authority or any other entity of whatever nature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.39 "<u>Plan</u>" means the Imricor Medical Systems, Inc. 2019 Equity Incentive Plan, as may be amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.40 "<u>Plan Year</u>" means the Company's fiscal year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.41 "<u>Previously Acquired Shares</u>" means shares of Common Stock that are already owned by the Participant or, with respect to any Award, that are to be issued to the Participant upon the grant, exercise, vesting or settlement of such Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.42 "<u>Prior Plan</u>" means the Imricor Medical Systems, Inc. 2016 Stock Option Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.43 "<u>Restricted Stock Award</u>" means an award of Common Stock granted to an Eligible Recipient pursuant to Section 8 of this Plan that is subject to the restrictions on transferability and the risk of forfeiture imposed by the provisions of such Section 8.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.44 "<u>Restricted Stock Unit</u>" means an award denominated in shares of Common Stock granted to an Eligible Recipient pursuant to Section 8 of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.45 "<u>Retirement</u>," means, unless otherwise defined in the Award Agreement or in an Individual Agreement between the Participant and the Company or one of its Subsidiaries or Affiliates, "Retirement" as defined from time to time for purposes of this Plan by the Committee or by the Company's chief human resources officer or other person performing that function or, if not so defined, means voluntary termination of employment or service by the Participant on or after the date the Participant reaches age fifty-five (55) with the present intention to leave the Company's industry or to leave the general workforce.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.46 "<u>Securities Act</u>" means the Securities Act of 1933, as amended. Any reference to a section of the Securities Act herein will be deemed to include a reference to any applicable rules and regulations thereunder and any successor or amended section of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.47 "<u>Stock Appreciation Right</u>" means a right granted to an Eligible Recipient pursuant to Section 7 of this Plan to receive a payment from the Company upon exercise, in the form of shares of Common Stock, cash or a combination of both, equal to the difference between the Fair Market Value of one or more shares of Common Stock and the grant price of such shares under the terms of such Stock Appreciation Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.48 "<u>Stock-Based Award</u>" means any Award, denominated in Shares, made pursuant to this Plan, including Options, Stock Appreciation Rights, Restricted Stock, Restricted Stock Units, Deferred Stock Units, Performance Awards or Other Stock-Based Awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.49 "<u>Subsidiary</u>" means any corporation or other entity, whether domestic or foreign, in which the Company has or obtains, directly or indirectly, an interest of more than fifty percent (50%) by reason of stock ownership or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.50 "<u>Tax Date</u>" means the date any withholding or employment related tax obligation arises under the Code or any Applicable Law for a Participant with respect to an Award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.51 "<u>Tax Laws</u>" has the meaning set forth in Section 22.8 of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Plan Administration</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>The Committee</u>. The Plan will be administered by the Committee. The Committee will act by majority approval of the members at a meeting or by unanimous written consent, and a majority of the members of the Committee will constitute a quorum. The Committee may exercise its duties, power and authority under this Plan in its sole discretion without the consent of any Participant or other party, unless this Plan specifically provides otherwise. The Committee will not be obligated to treat Participants or Eligible Recipients uniformly, and determinations made under this Plan may be made by the Committee selectively among Participants or Eligible Recipients, whether or not such Participants and Eligible Recipients are similarly situated. Each determination, interpretation or other action made or taken by the Committee pursuant to the provisions of this Plan will be final, conclusive and binding for all purposes and on all persons, and no member of the Committee will be liable for any action or determination made in good faith with respect to this Plan or any Award granted under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Authority of the Committee</u>. In accordance with and subject to the provisions of this Plan, the Committee will have full and exclusive discretionary power and authority to take such actions as it deems necessary and advisable with respect to the administration of this Plan, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To designate the Eligible Recipients to be selected as Participants;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) To determine the nature, extent and terms of the Awards to be made to each Participant, including the amount of cash or number of shares of Common Stock to be subject to each Award, any exercise price or grant price, the manner in which Awards will vest, become exercisable, settled or paid out and whether Awards will be granted in tandem with other Awards, and the form of Award Agreement, if any, evidencing such Award;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To determine the time or times when Awards will be granted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To determine the duration of each Award;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To determine the terms, restrictions and other conditions to which the grant of an Award or the payment or vesting of Awards may be subject;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) To construe and interpret this Plan and Awards granted under it, and to establish, amend and revoke rules and regulations for its administration and in so doing, to correct any defect, omission, or inconsistency in this Plan or in an Award Agreement, in a manner and to the extent it will deem necessary or expedient to make this Plan fully effective;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) To determine Fair Market Value in accordance with Section 2.23 of this Plan or <u>Exhibit A</u>, as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) To amend this Plan or any Award Agreement, as provided in this Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) To adopt subplans or special provisions applicable to Awards regulated by the laws of a jurisdiction other than, and outside of, the United States, which except as otherwise provided in this Plan, such subplans or special provisions may take precedence over other provisions of this Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) To authorize any person to execute on behalf of the Company any Award Agreement or any other instrument required to effect the grant of an Award previously granted by the Committee;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) To determine whether Awards will be settled in shares of Common Stock, cash or in any combination thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) To determine whether Awards will be adjusted for dividend equivalents, with "Dividend Equivalents" meaning a credit, made at the discretion of the Committee, to the account of a Participant in an amount equal to the cash dividends paid on one share of Common Stock for each share of Common Stock represented by an Award held by such Participant, subject to Section 12 of this Plan and any other provision of this Plan, and which Dividend Equivalents may be subject to the same conditions and restrictions as the Awards to which they attach and may be settled in the form of cash, shares of Common Stock, or in any combination of both; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) To impose such restrictions, conditions or limitations as it determines appropriate as to the timing and manner of any resales by a Participant or other subsequent transfers by the Participant of any shares of Common Stock, including restrictions under an insider trading policy, stock ownership guidelines, restrictions as to the use of a specified brokerage firm for such resales or other transfers and other restrictions designed to increase equity ownership by Participants or otherwise align the interests of Participants with the Company's stockholders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Delegation</u>. To the extent permitted by Applicable Law, the Committee may delegate to one or more of its members or to one or more officers of the Company or any Subsidiary or to one or more agents or advisors such administrative duties or powers as it may deem advisable, and the Committee or any individuals to whom it has delegated duties or powers as aforesaid may employ one or more individuals to render advice with respect to any responsibility the Committee or such individuals may have under this Plan. The Committee may, by resolution, authorize one or more directors of the Company or one or more officers of the Company to do one or both of the following on the same basis as can the Committee: (a) designate Eligible Recipients to be recipients of Awards pursuant to this Plan; and (b) determine the size of any such Awards; <u>provided</u>, <u>however</u>, that (x) the Committee will not delegate such responsibilities to any such director(s) or officer(s) for any Awards granted to an Eligible Recipient: (i) who is a Non-Employee Director or who is subject to the reporting and liability provisions of Section 16 under the Exchange Act, or (ii) to whom authority to grant or amend Awards has been delegated hereunder; <u>provided</u>, <u>further</u>; that any delegation of administrative authority will only be permitted to the extent it is permissible under Applicable Law; (y) the resolution providing such authorization will set forth the type of Awards and total number of each type of Awards such director(s) or officer(s) may grant; and (z) such director(s) or officer(s) will report periodically to the Committee regarding the nature and scope of the Awards granted pursuant to the authority delegated. At all times, the delagatee appointed under this Section 3.3 will serve in such capacity at the pleasure of the Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 <u>Participants Based Outside of the United States</u>. In addition to the authority of the Committee under Section 3.2(i) and notwithstanding any other provision of this Plan, the Committee may, in its sole discretion, amend the terms of this Plan or Awards with respect to Participants resident outside of the United States or employed by a non-U.S. Subsidiary in order to comply with local legal requirements, to otherwise protect the Company's or Subsidiary's interests or to meet objectives of this Plan, and may, where appropriate, establish one or more sub-plans (including the adoption of any required rules and regulations) for the purposes of qualifying for preferred tax treatment under foreign tax laws. The Committee will have no authority, however, to take action pursuant to this Section 3.4: (a) to reserve shares of Common Stock or grant Awards in excess of the limitations provided in Section 4.1 of this Plan; (b) to grant Options or Stock Appreciation Rights having an exercise price or grant price less than one hundred percent (100%) of the Fair Market Value of one share of Common Stock on the Grant Date in violation of Section 6.3 or Section 7.3 of this Plan; or (c) for which stockholder approval would then be required pursuant to Section 19.2 of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Shares Available for Issuance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Maximum Number of Shares Available</u>. Subject to adjustment as provided in Section 4.4 of this Plan, the maximum number of shares of Common Stock that will be reserved and available for issuance under this Plan will be 11,418,500 shares; provided, however, that such amount will include the number of shares of Common Stock subject to Options that are issued under the Prior Plan or the Company's 2006 Stock Option Plan, which subsequently expire or terminate without such shares being issued (the "<u>Initial Limit</u>"); provided, further, that on the first day of each of the Company's fiscal years during the term of this Plan beginning in 2020, the number of shares of Common Stock available for issuance from time to time under this Plan will be increased by an amount equal to the lesser of (i) five percent (5%) of the aggregate number of shares reserved under this Plan on the last day of the immediately preceding fiscal year, and (ii) such number of shares determined by the Board (the "<u>Annual Increase</u>"). In order that the applicable regulations under the Code relating to Incentive Stock Options be satisfied, the maximum number of shares of Common Stock that may be issued under this Plan upon the exercise of Incentive Stock Options may not exceed the Initial Limit cumulatively increased on January 1, 2020 and each January 1 thereafter by the lesser of the Annual Increase for such year or 1,500,000 shares of Common Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Limits on Incentive Stock Options and Non-Employee Director Awards</u>. Notwithstanding any other provisions of this Plan to the contrary and subject to adjustment as provided in Section 4.5 of this Plan, the maximum aggregate number of shares of Common Stock that will be available for issuance pursuant to Incentive Stock Options under this Plan may not exceed the number of shares described in Section 4.1 hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Accounting for Awards</u>. Shares of Common Stock that are issued under this Plan or that are subject to outstanding Awards will be applied to reduce the maximum number of shares of Common Stock remaining available for issuance under this Plan only to the extent they are used; <u>provided</u>, <u>however</u>, that the full number of shares of Common Stock subject to a stock-settled Stock Appreciation Right or other Stock-Based Award will be counted against the shares authorized for issuance under this Plan, regardless of the number of shares actually issued upon settlement of such Stock Appreciation Right or other Stock-Based Award. Furthermore, any shares of Common Stock withheld to satisfy tax withholding obligations on Awards issued under this Plan, any shares of Common Stock withheld to pay the exercise price or grant price of Awards under this Plan and any shares of Common Stock not issued or delivered as a result of the "net exercise" of an outstanding Option pursuant to Section 6.5 or settlement of a Stock Appreciation Right in shares of Common Stock pursuant to Section 7.7 will be counted against the shares of Common Stock authorized for issuance under this Plan and will not be available again for grant under this Plan. Shares of Common Stock subject to Awards settled in cash will again be available for issuance pursuant to Awards granted under the Plan. Any shares of Common Stock repurchased by the Company on the open market using the proceeds from the exercise of an Award will not increase the number of shares of Common Stock available for future grant of Awards. Any shares of Common Stock related to Awards granted under this Plan that terminate by expiration, forfeiture, cancellation or otherwise without the issuance of the shares of Common Stock, will be available again for grant under this Plan. To the extent permitted by Applicable Law, shares of Common Stock issued in assumption of, or in substitution for, any outstanding awards of any entity acquired in any form of combination by the Company or a Subsidiary pursuant to Section 20 of this Plan or otherwise will not be counted against shares of Common Stock available for issuance pursuant to this Plan. The shares of Common Stock available for issuance under this Plan may be authorized and unissued shares or treasury shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Adjustments to Shares and Awards</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event of any reorganization, merger, consolidation, recapitalization, liquidation, reclassification, stock dividend, stock split, combination of shares, rights offering, divestiture or extraordinary dividend (including a spin off) or any other similar change in the corporate structure or shares of Common Stock the Company, the Committee (or, if the Company is not the surviving corporation in any such transaction, the board of directors of the surviving corporation) will make appropriate adjustment or substitutions (which determination will be conclusive) as to: (i) the number and kind of securities or other property (including cash) available for issuance or payment under this Plan, including the sub-limits set forth in Section 4.2 of this Plan, and (ii) in order to prevent dilution or enlargement of the rights of Participants, the number and kind of securities or other property (including cash) subject to outstanding Awards and the exercise price of outstanding Awards; <u>provided</u>, <u>however</u>, that this Section 4.4 will not limit the authority of the Committee to take action (i) pursuant to Section 15 of this Plan in the event of a Change in Control, or (ii) if applicable, in accordance with <u>Exhibit A</u>. The determination of the Committee as to the foregoing adjustments and/or substitutions, if any, will be final, conclusive and binding on Participants under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything else herein to the contrary, without affecting the number of shares of Common Stock reserved or available hereunder, the limits in Section 4.2 of this Plan, the Committee may authorize the issuance or assumption of benefits under this Plan in connection with any merger, consolidation, acquisition of property or stock or reorganization upon such terms and conditions as it may deem appropriate, subject to compliance with the rules under Sections 422, 424 and 409A of the Code, as and where applicable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Participation</u>.

Participants in this Plan will be those Eligible Recipients who, in the judgment of the Committee, have contributed, are contributing or are expected to contribute to the achievement of the objectives of the Company or its Subsidiaries. Eligible Recipients may be granted from time to time one or more Awards, singly or in combination or in tandem with other Awards, as may be determined by the Committee in its sole discretion. Awards will be deemed to be granted as of the date specified in the grant resolution of the Committee, which date will be the Grant Date of any related Award Agreement with the Participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Options</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Grant</u>. An Eligible Recipient may be granted one or more Options under this Plan, and such Options will be subject to such terms and conditions, consistent with the other provisions of this Plan, as may be determined by the Committee in its sole discretion. Incentive Stock Options may be granted solely to eligible Employees of the Company or a Subsidiary. The Committee may designate whether an Option is to be considered an Incentive Stock Option or a Non-Statutory Stock Option. To the extent that any Incentive Stock Option (or portion thereof) granted under this Plan ceases for any reason to qualify as an "incentive stock option" for purposes of Section 422 of the Code, such Incentive Stock Option (or portion thereof) will continue to be outstanding for purposes of this Plan but will thereafter be deemed to be a Non-Statutory Stock Option. Options may be granted to an Eligible Recipient for services provided to a Subsidiary only if, with respect to such Eligible Recipient, the underlying shares of Common Stock constitute "service recipient stock" within the meaning of Treas. Reg. Sec. 1.409A-1(b)(5)(iii) promulgated under the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Award Agreement</u>. Each Option grant will be evidenced by an Award Agreement that will specify the exercise price of the Option, the maximum duration of the Option, the number of shares of Common Stock to which the Option pertains, the conditions upon which an Option will become vested and exercisable, and such other provisions as the Committee will determine which are not inconsistent with the terms of this Plan. The Award Agreement also will specify whether the Option is intended to be an Incentive Stock Option or a Non-Statutory Stock Option (if applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Exercise Price</u>. The per share price to be paid by a Participant upon exercise of an Option granted pursuant to this Section 6 will be determined by the Committee in its sole discretion at the time of the Option grant; <u>provided</u>, <u>however</u>, that such price will not be less than one hundred percent (100%) of the Fair Market Value of one share of Common Stock on the Grant Date (one hundred and ten percent (110%) of the Fair Market Value if, at the time the Incentive Stock Option is granted, the Participant owns, directly or indirectly, more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any parent or subsidiary corporation of the Company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Exercisability and Duration</u>. An Option will become exercisable at such times and in such installments and upon such terms and conditions as may be determined by the Committee in its sole discretion at the time of grant, including (a) the achievement of one or more of the Performance Goals; or that (b) the Participant remain in the continuous employment or service with the Company or a Subsidiary for a certain period; <u>provided</u>, <u>however</u>, that no Option may be exercisable after ten (10) years from the Grant Date (five (5) years from the Grant Date in the case of an Incentive Stock Option that is granted to a Participant who owns, directly or indirectly, more than ten percent (10%) of the total combined voting power of all classes of stock of the Company or any parent or subsidiary corporation of the Company). Notwithstanding the foregoing, if the exercise of an Option that is exercisable in accordance with its terms is prevented by the provisions of Section 17 of this Plan, the Option will remain exercisable until thirty (30) days after the date such exercise first would no longer be prevented by such provisions, but in any event no later than the expiration date of such Option.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.5 <u>Payment of Exercise Price</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The total purchase price of the shares of Common Stock to be purchased upon exercise of an Option will be paid entirely in cash (including check, bank draft or money order); <u>provided</u>, <u>however</u>, that the Committee, in its sole discretion and upon terms and conditions established by the Committee, may allow such payments to be made, in whole or in part, by (i) tender of a Broker Exercise Notice; (ii) by tender, either by actual delivery or attestation as to ownership, of Previously Acquired Shares; (iii) a "net exercise" of the Option (as further described in paragraph (b), below); (iv) by a combination of such methods; or (v) any other method approved or accepted by the Committee in its sole discretion. Notwithstanding any other provision of this Plan to the contrary, no Participant who is a Director or an "executive officer" of the Company within the meaning of Section 13(k) of the Exchange Act will be permitted to make payment with respect to any Awards granted under this Plan, or continue any extension of credit with respect to such payment with a loan from the Company or a loan arranged by the Company in violation of Section 13(k) of the Exchange Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the case of a "net exercise" of an Option, the Company will not require a payment of the exercise price of the Option from the Participant but will reduce the number of shares of Common Stock issued upon the exercise by the largest number of whole shares that has a Fair Market Value on the exercise date that does not exceed the aggregate exercise price for the shares exercised under this method. Shares of Common Stock will no longer be outstanding under an Option (and will therefore not thereafter be exercisable) following the exercise of such Option to the extent of (i) shares used to pay the exercise price of an Option under the "net exercise," (ii) shares actually delivered to the Participant as a result of such exercise and (iii) any shares withheld for purposes of tax withholding pursuant to Section 14 of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of such payment, Previously Acquired Shares tendered or covered by an attestation will be valued at their Fair Market Value on the exercise date of the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.6 <u>Manner of Exercise</u>. An Option may be exercised by a Participant in whole or in part from time to time, subject to the conditions contained in this Plan and in the Award Agreement evidencing such Option, by delivery in person, by facsimile or electronic transmission or through the mail of written notice of exercise to the Company at its principal executive office (or to the Company's designee as may be established from time to time by the Company and communicated to Participants) and by paying in full the total exercise price for the shares of Common Stock to be purchased in accordance with Section 6.5 of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Stock Appreciation Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Grant</u>. An Eligible Recipient may be granted one or more Stock Appreciation Rights under this Plan, and such Stock Appreciation Rights will be subject to such terms and conditions, consistent with the other provisions of this Plan, as may be determined by the Committee in its sole discretion. Stock Appreciation Rights may be granted to an Eligible Recipient for services provided to a Subsidiary only if, with respect to such Eligible Recipient, the underlying shares of Common Stock constitute "service recipient stock" within the meaning of Treas. Reg. Sec. 1.409A-1(b)(5)(iii) promulgated under the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Award Agreement</u>. Each Stock Appreciation Right will be evidenced by an Award Agreement that will specify the grant price of the Stock Appreciation Right, the term of the Stock Appreciation Right, and such other provisions as the Committee will determine which are not inconsistent with the terms of this Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Grant Price</u>. The grant price of a Stock Appreciation Right will be determined by the Committee, in its discretion, at the Grant Date; <u>provided</u>, <u>however</u>, that such price may not be less than one hundred percent (100%) of the Fair Market Value of one share of Common Stock on the Grant Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Exercisability and Duration</u>. A Stock Appreciation Right will become exercisable at such times and in such installments as may be determined by the Committee in its sole discretion at the time of grant; <u>provided</u>, <u>however</u>, that no Stock Appreciation Right may be exercisable after ten (10) years from its Grant Date. Notwithstanding the foregoing, if the exercise of a Stock Appreciation Right that is exercisable in accordance with its terms is prevented by the provisions of Section 17 of this Plan, the Stock Appreciation Right will remain exercisable until thirty (30) days after the date such exercise first would no longer be prevented by such provisions, but in any event no later than the expiration date of such Stock Appreciation Right.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Manner of Exercise</u>. A Stock Appreciation Right will be exercised by giving notice in the same manner as for Options, as set forth in Section 6.6 of this Plan, subject to any other terms and conditions consistent with the other provisions of this Plan as may be determined by the Committee in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <u>Settlement</u>. Upon the exercise of a Stock Appreciation Right, a Participant will be entitled to receive payment from the Company in an amount determined by multiplying:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The excess of the Fair Market Value of a share of Common Stock on the date of exercise over the per share grant price; by

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The number of shares of Common Stock with respect to which the Stock Appreciation Right is exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 <u>Form of Payment</u>. Payment, if any, with respect to a Stock Appreciation Right settled in accordance with Section 7.6 of this Plan will be made in accordance with the terms of the applicable Award Agreement, in cash, shares of Common Stock or a combination thereof, as the Committee determines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Restricted Stock Awards, Restricted Stock Units and Deferred Stock Units</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Grant</u>. An Eligible Recipient may be granted one or more Restricted Stock Awards, Restricted Stock Units or Deferred Stock Units under this Plan, and such Awards will be subject to such terms and conditions, consistent with the other provisions of this Plan, as may be determined by the Committee in its sole discretion. Restricted Stock Units will be similar to Restricted Stock Awards except that no shares of Common Stock are actually awarded to the Participant on the Grant Date of the Restricted Stock Units. Restricted Stock Units and Deferred Stock Units will be denominated in shares of Common Stock but paid in cash, shares of Common Stock or a combination of cash and shares of Common Stock as the Committee, in its sole discretion, will determine, and as provided in the Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 <u>Award Agreement</u>. Each Restricted Stock Award, Restricted Stock Unit or Deferred Stock Unit grant will be evidenced by an Award Agreement that will specify the type of Award, the period(s) of restriction, the number of shares of restricted Common Stock, or the number of Restricted Stock Units or Deferred Stock Units granted, and such other provisions as the Committee will determine that are not inconsistent with the terms of this Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 <u>Conditions and Restrictions</u>. Subject to the terms and conditions of this Plan, the Committee will impose such conditions or restrictions on a Restricted Stock Award, Restricted Stock Units or Deferred Stock Units granted pursuant to this Plan as it may deem advisable including a requirement that Participants pay a stipulated purchase price for each share of Common Stock underlying a Restricted Stock Award, Restricted Stock Unit or Deferred Stock Unit, restrictions based upon the achievement of specific Performance Goals, time-based restrictions on vesting following the attainment of the Performance Goals, time-based restrictions, restrictions under Applicable Laws or holding requirements or sale restrictions placed on the shares of Common Stock by the Company upon vesting of such Restricted Stock Award, Restricted Stock Units or Deferred Stock Units.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 <u>Voting Rights</u>. Unless otherwise determined by the Committee and set forth in a Participant's Award Agreement, to the extent permitted or required by Applicable Law, as determined by the Committee, Participants holding a Restricted Stock Award granted hereunder will be granted the right to exercise full voting rights with respect to the shares of Common Stock underlying such Restricted Stock Award during the Period of Restriction. A Participant will have no voting rights with respect to any Restricted Stock Units or Deferred Stock Units granted hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 <u>Dividend Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless otherwise determined by the Committee and set forth in a Participant's Award Agreement, to the extent permitted or required by Applicable Law, as determined by the Committee, Participants holding a Restricted Stock Award granted hereunder will have the same dividend rights as the Company's other stockholders. Notwithstanding the foregoing any such dividends as to a Restricted Stock Award that is subject to vesting requirements will be subject to forfeiture and termination to the same extent as the Restricted Stock Award to which such dividends relate and the Award Agreement may require that any cash dividends be reinvested in additional shares of Common Stock subject to the Restricted Stock Award and subject to the same conditions and restrictions as the Restricted Stock Award with respect to which the dividends were paid. In no event will dividends with respect to Restricted Stock Awards that are subject to vesting be paid or distributed until the vesting provisions of such Restricted Stock Award lapse.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless otherwise determined by the Committee and set forth in a Participant's Award Agreement, to the extent permitted or required by Applicable Law, as determined by the Committee, prior to settlement or forfeiture, any Restricted Stock Units or Deferred Stock Unit awarded under this Plan may, at the Committee's discretion, carry with it a right to Dividend Equivalents. Such right entitles the Participant to be credited with an amount equal to all cash dividends paid on one share of Common Stock while the Restricted Stock Unit or Deferred Stock Unit is outstanding. Dividend Equivalents may be converted into additional Restricted Stock Units or Deferred Stock Units and may (and will, to the extent required below) be made subject to the same conditions and restrictions as the Restricted Stock Units or Deferred Stock Units to which they attach. Settlement of Dividend Equivalents may be made in the form of cash, in the form of shares of Common Stock, or in a combination of both. Dividend Equivalents as to Restricted Stock Units or Deferred Stock Units will be subject to forfeiture and termination to the same extent as the corresponding Restricted Stock Units or Deferred Stock Units as to which the Dividend Equivalents relate. In no event will Participants holding Restricted Stock Units or Deferred Stock Units be entitled to receive any Dividend Equivalents on such Restricted Stock Units or Deferred Stock Units until the vesting provisions of such Restricted Stock Units or Deferred Stock Units lapse.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 <u>Enforcement of Restrictions</u>. To enforce the restrictions referred to in this Section 8, the Committee may place a legend on the stock certificates representing Restricted Stock Awards referring to such restrictions and may require the Participant, until the restrictions have lapsed, to keep the stock certificates, together with duly endorsed stock powers, in the custody of the Company or its transfer agent, or to maintain evidence of stock ownership, together with duly endorsed stock powers, in a certificateless book entry stock account with the Company's transfer agent. Alternatively, Restricted Stock Awards may be held in non-certificated form pursuant to such terms and conditions as the Company may establish with its registrar and transfer agent or any third-party administrator designated by the Company to hold Restricted Stock Awards on behalf of Participants.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.7 <u>Lapse of Restrictions; Settlement</u>. Except as otherwise provided in this Plan, including without limitation this Section 8 and 16.4 of this Plan, shares of Common Stock underlying a Restricted Stock Award will become freely transferable by the Participant after all conditions and restrictions applicable to such shares have been satisfied or lapse (including satisfaction of any applicable tax withholding obligations). Upon the vesting of a Restricted Stock Unit, the Restricted Stock Unit will be settled, subject to the terms and conditions of the applicable Award Agreement, (a) in cash, based upon the Fair Market Value of the vested underlying shares of Common Stock, (b) in shares of Common Stock or (c) a combination thereof, as provided in the Award Agreement, except to the extent that a Participant has properly elected to defer income that may be attributable to a Restricted Stock Unit under a Company deferred compensation plan or arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.8 <u>Section 83(b) Election for Restricted Stock Award</u>. If a Participant makes an election pursuant to Section 83(b) of the Code with respect to a Restricted Stock Award, the Participant must file, within thirty (30) days following the Grant Date of the Restricted Stock Award, a copy of such election with the Company and with the Internal Revenue Service, in accordance with the regulations under Section 83 of the Code. The Committee may provide in the Award Agreement that the Restricted Stock Award is conditioned upon the Participant's making or refraining from making an election with respect to the award under Section 83(b) of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Performance Awards.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Grant</u>. An Eligible Recipient may be granted one or more Performance Awards under this Plan, and such Awards will be subject to such terms and conditions, consistent with the other provisions of this Plan, as may be determined by the Committee in its sole discretion, including the achievement of one or more Performance Goals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Award Agreement</u>. Each Performance Award will be evidenced by an Award Agreement that will specify the amount of cash, shares of Common Stock, other Awards, or combination of both to be received by the Participant upon payout of the Performance Award, any Performance Goals upon which the Performance Award is subject, any Performance Period during which any Performance Goals must be achieved and such other provisions as the Committee will determine which are not inconsistent with the terms of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>Vesting</u>. Subject to the terms of this Plan, the Committee may impose such restrictions or conditions, not inconsistent with the provisions of this Plan, to the vesting of such Performance Awards as it deems appropriate, including the achievement of one or more of the Performance Goals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <u>Earning of Performance Award Payment</u>. Subject to the terms of this Plan and the Award Agreement, after the applicable Performance Period has ended, the holder of Performance Awards will be entitled to receive payout on the value and number of Performance Awards earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding Performance Goals have been achieved and such other restrictions or conditions imposed on the vesting and payout of the Performance Awards has been satisfied.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 <u>Form and Timing of Performance Award Payment</u>. Subject to the terms of this Plan, after the applicable Performance Period has ended, the holder of Performance Awards will be entitled to receive payment on the value and number of Performance Awards earned by the Participant over the Performance Period, to be determined as a function of the extent to which the corresponding Performance Goals have been achieved. Payment of earned Performance Awards will be as determined by the Committee and as evidenced in the Award Agreement. Subject to the terms of this Plan, the Committee, in its sole discretion, may pay earned Performance Awards in the form of cash, in shares of Common Stock or other Awards (or in a combination thereof) equal to the value of the earned Performance Awards at the close of the applicable Performance Period. Payment of any Performance Award will be made as soon as practicable after the Committee has determined the extent to which the applicable Performance Goals have been achieved and not later than the fifteenth (15<sup>th</sup>) day of the third (3<sup>rd</sup>) month immediately following the later of the end of the Company's fiscal year in which the Performance Period ends and any additional vesting restrictions are satisfied or the end of the calendar year in which the Performance Period ends and any additional vesting restrictions are satisfied, except to the extent that a Participant has properly elected to defer payment that may be attributable to a Performance Award under a Company deferred compensation plan or arrangement. The determination of the Committee with respect to the form and time of payment of Performance Awards will be set forth in the Award Agreement pertaining to the grant of the Performance Award. Any shares of Common Stock or other Awards issued in payment of earned Performance Awards may be granted subject to any restrictions deemed appropriate by the Committee, including that the Participant remain in the continuous employment or service with the Company or a Subsidiary for a certain period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 <u>Evaluation of Performance</u>. The Committee may provide in any such Award Agreement including Performance Goals that any evaluation of performance may include or exclude any of the following events that occurs during a Performance Period: (a) items related to a change in accounting principles; (b) items relating to financing activities; (c) expenses for restructuring or productivity initiatives; (d) other non-operating items; (e) items related to acquisitions; (f) items attributable to the business operations of any entity acquired by the Company during the Performance Period; (g) items related to the disposal of a business or segment of a business; (h) items related to discontinued operations that do not qualify as a segment of a business under applicable accounting standards; (i) items attributable to any stock dividend, stock split, combination or exchange of stock occurring during the Performance Period; (j) any other items of significant income or expense which are determined to be appropriate adjustments; (k) items relating to unusual or extraordinary corporate transactions, events or developments; (l) items related to amortization of acquired intangible assets; (m) items that are outside the scope of the Company's core, on-going business activities; (n) items related to acquired in-process research and development; (o) items relating to changes in tax laws; (p) items relating to major licensing or partnership arrangements; (q) items relating to asset impairment charges; (r) items relating to gains or losses for litigation, arbitration and contractual settlements; (s) foreign exchange gains and losses; or (t) items relating to any other unusual or nonrecurring events or changes in applicable laws, accounting principles or business conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 <u>Adjustment of Performance Goals, Performance Periods or other Vesting Criteria</u>. The Committee may amend or modify the vesting criteria (including any Performance Goals or Performance Periods) of any outstanding Awards based in whole or in part on the financial performance of the Company (or any Subsidiary or division, business unit or other sub-unit thereof) in recognition of unusual or nonrecurring events (including the events described in Sections 9.6 or 4.4(a) of this Plan) affecting the Company or the financial statements of the Company or of changes in applicable laws, regulations or accounting principles, whenever the Committee determines that such adjustments are appropriate in order to prevent unintended dilution or enlargement of the benefits or potential benefits intended to be made available under this Plan. The determination of the Committee as to the foregoing adjustments, if any, will be final, conclusive and binding on Participants under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 <u>Dividend Rights</u>. Participants holding Performance Awards granted under this Plan will not receive any cash dividends or Dividend Equivalents based on the dividends declared on shares of Common Stock that are subject to such Performance Awards during the period between the date that such Performance Awards are granted and the date such Performance Awards are settled.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Non-Employee Director Awards</u>.

The Committee may permit Non-Employee Directors the opportunity to defer the payment of an Award pursuant to such terms and conditions as the Committee may prescribe from time to time. In addition, the Committee may permit Non-Employee Directors to elect to receive, pursuant to the procedures established by the Board or a committee of the Board, all or any portion of their annual retainers, meeting fees, or other fees in Restricted Stock, Restricted Stock Units, Deferred Stock Units or other Stock-Based Awards as contemplated by this Plan in lieu of cash.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Other Stock-Based Awards</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 <u>Other Stock-Based Awards</u>. Subject to such terms and conditions, consistent with the other provisions of this Plan, as may be determined by the Committee in its sole discretion, the Committee may grant Other Stock-Based Awards to Eligible Recipients not otherwise described by the terms of this Plan (including the grant or offer for sale of unrestricted shares of Common Stock) in such amounts and subject to such terms and conditions as the Committee will determine. Such Awards may involve the transfer of actual shares of Common Stock to Participants as a bonus or in lieu of obligations to pay cash or deliver other property under this Plan or under other plans or compensatory arrangements, or payment in cash or otherwise of amounts based on the value of shares of Common Stock, and may include Awards designed to comply with or take advantage of the applicable local laws of jurisdictions other than the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 <u>Value of Other Stock-Based Awards</u>. Each Other Stock-Based Award will be expressed in terms of shares of Common Stock or units based on shares of Common Stock, as determined by the Committee. The Committee may establish Performance Goals in its discretion for any Other Stock-Based Award. If the Committee exercises its discretion to establish Performance Goals for any such Awards, the number or value of Other Stock-Based Awards that will be paid out to the Participant will depend on the extent to which the Performance Goals are met.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 <u>Payment of Other Stock-Based Awards</u>. Payment, if any, with respect to an Other Stock-Based Award will be made in accordance with the terms of the Award, in cash or shares of Common Stock for any Other Stock-Based Award, as the Committee determines, except to the extent that a Participant has properly elected to defer payment that may be attributable to an Other Stock-Based Award under a Company deferred compensation plan or arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Dividend Equivalents</u>.

Subject to the provisions of this Plan and any Award Agreement, any Participant selected by the Committee may be granted Dividend Equivalents based on the dividends declared on shares of Common Stock that are subject to any Award (including any Award that has been deferred), to be credited as of dividend payment dates, during the period between the date the Award is granted and the date the Award is exercised, vests, settles, is paid or expires, as determined by the Committee. Such Dividend Equivalents will be converted to cash or additional shares of Common Stock by such formula and at such time and subject to such limitations as may be determined by the Committee and the Committee may provide that such amounts (if any) will be deemed to have been reinvested in additional shares of Common Stock or otherwise reinvested. Notwithstanding the foregoing, the Committee may not grant Dividend Equivalents based on the dividends declared on shares of Common Stock that are subject to an Option or Stock Appreciation Right or unvested Performance Awards; and further, no dividend or Dividend Equivalents will be paid out with respect to any unvested Awards.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Effect of Termination of Employment or Other Service</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 <u>Termination Due to Cause</u>. Unless otherwise expressly provided by the Committee in its sole discretion in an Award Agreement or the terms of an Individual Agreement between the Participant and the Company or one of its Subsidiaries or Affiliates or a plan or policy of the Company applicable to the Participant specifically provides otherwise, and subject to Sections 13.4 and 13.5 of this Plan, in the event a Participant's employment or other service with the Company and all Subsidiaries is terminated for Cause:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All outstanding Options and Stock Appreciation Rights held by the Participant as of the effective date of such termination will be immediately terminated and forfeited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All outstanding but unvested Restricted Stock Awards, Restricted Stock Units, Performance Awards and Other Stock-Based Awards held by the Participant as of the effective date of such termination will be terminated and forfeited; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All other outstanding Awards to the extent not vested will be immediately terminated and forfeited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 <u>Termination Due to Death, Disability or Retirement</u>. Unless otherwise expressly provided by the Committee in its sole discretion in an Award Agreement between the Participant and the Company or one of its Subsidiaries or Affiliates or the terms of an Individual Agreement or a plan or policy of the Company applicable to the Participant specifically provides otherwise, and subject to Sections 13.4, 13.5 and 15 of this Plan, in the event a Participant's employment or other service with the Company and all Subsidiaries is terminated by reason of death or Disability of a Participant, or in the case of a Participant that is an Employee, Retirement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All outstanding Options (excluding Non-Employee Director Options in the case of Retirement) and Stock Appreciation Rights held by the Participant as of the effective date of such termination or Retirement will, to the extent exercisable as of the date of such termination or Retirement, remain exercisable for a period of one (1) year after the date of such termination or Retirement (but in no event after the expiration date of any such Option or Stock Appreciation Right) and Options and Stock Appreciation Rights not exercisable as of the date of such termination or Retirement will be terminated and forfeited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All outstanding unvested Restricted Stock Awards held by the Participant as of the effective date of such termination or Retirement will be terminated and forfeited; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All outstanding unvested Restricted Stock Units, Performance Awards, and Other Stock-Based Awards held by the Participant as of the effective date of such termination or Retirement will be terminated and forfeited; <u>provided</u>, <u>however</u>, that with respect to any such Awards the vesting of which is based on the achievement of Performance Goals, if a Participant's employment or other service with the Company or any Subsidiary, as the case may be, is terminated prior to the end of the Performance Period of such Award, but after the conclusion of a portion of the Performance Period (but in no event less than one year), the Committee may, in its sole discretion, cause shares of Common Stock to be delivered or payment made (except to the extent that a Participant has properly elected to defer income that may be attributable to such Award under a Company deferred compensation plan or arrangement) with respect to the Participant's Award, but only if otherwise earned for the entire Performance Period and only with respect to the portion of the applicable Performance Period completed at the date of such event, with proration based on the number of months or years that the Participant was employed or performed services during the Performance Period. The Committee will consider the provisions of Section 13.5 of this Plan and will have the discretion to consider any other fact or circumstance in making its decision as to whether to deliver such shares of Common Stock or other payment, including whether the Participant again becomes employed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3 <u>Termination for Reasons Other than Death, Disability or Retirement</u>. Unless otherwise expressly provided by the Committee in its sole discretion in an Award Agreement or the terms of an Individual Agreement between the Participant and the Company or one of its Subsidiaries or Affiliates or a plan or policy of the Company applicable to the Participant specifically provides otherwise, and subject to Sections 13.4, 13.5 and 15 of this Plan, in the event a Participant's employment or other service with the Company and all Subsidiaries is terminated for any reason other than for Cause or death or Disability of a Participant, or in the case of a Participant that is an Employee, Retirement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All outstanding Options (including Non-Employee Director Options) and Stock Appreciation Rights held by the Participant as of the effective date of such termination will, to the extent exercisable as of such termination, remain exercisable for a period of three (3) months after such termination (but in no event after the expiration date of any such Option or Stock Appreciation Right) and Options and Stock Appreciation Rights not exercisable as of such termination will be terminated and forfeited. If the Participant dies within the three (3) month period referred to in the preceding sentence, the Option or Stock Appreciation Right may be exercised by those entitled to do so under the Participant's will or by the laws of descent and distribution within a period of one (1) year following the Participant's death (but in no event after the expiration date of any such Option or Stock Appreciation Right).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All outstanding unvested Restricted Stock Awards held by the Participant as of the effective date of such termination will be terminated and forfeited;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All outstanding unvested Restricted Stock Units, Performance Awards, and Other Stock-Based Awards held by the Participant as of the effective date of such termination will be terminated and forfeited; <u>provided</u>, <u>however</u>, that with respect to any such Awards the vesting of which is based on the achievement of Performance Goals, if a Participant's employment or other service with the Company or any Subsidiary, as the case may be, is terminated by the Company without Cause prior to the end of the Performance Period of such Award, but after the conclusion of a portion of the Performance Period (but in no event less than one year), the Committee may, in its sole discretion, cause Shares to be delivered or payment made (except to the extent that a Participant has properly elected to defer income that may be attributable to such Award under a Company deferred compensation plan or arrangement) with respect to the Participant's Award, but only if otherwise earned for the entire Performance Period and only with respect to the portion of the applicable Performance Period completed at the date of such event, with proration based on the number of months or years that the Participant was employed or performed services during the Performance Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4 <u>Modification of Rights upon Termination</u>. Notwithstanding the other provisions of this Section 13, upon a Participant's termination of employment or other service with the Company or any Subsidiary, as the case may be, the Committee may, in its sole discretion (which may be exercised at any time on or after the Grant Date, including following such termination) but subject always to all Applicable Laws, cause Options or Stock Appreciation Rights (or any part thereof) held by such Participant as of the effective date of such termination to terminate, become or continue to become exercisable or remain exercisable following such termination of employment or service, and Restricted Stock, Restricted Stock Units, Deferred Stock Units, Performance Awards, Non-Employee Director Awards, and Other Stock-Based Awards held by such Participant as of the effective date of such termination to terminate, vest or become free of restrictions and conditions to payment, as the case may be, following such termination of employment or service, in each case in the manner determined by the Committee; <u>provided</u>, <u>however</u>, that (a) no Option or Stock Appreciation Right may remain exercisable beyond its expiration date; and (b) any such action by the Committee adversely affecting any outstanding Award will not be effective without the consent of the affected Participant (subject to the right of the Committee to take whatever action it deems appropriate under Section 4.4, 13.5, 15 or 19 of this Plan).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.5 <u>Additional Forfeiture Events</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Effect of Actions Constituting Cause or Adverse Action</u>. Notwithstanding anything in this Plan to the contrary and in addition to the other rights of the Committee under this Plan, including this Section 13.5, if a Participant is determined by the Committee, acting in its sole discretion, to have taken any action that would constitute Cause or an Adverse Action during or within one (1) year after the termination of employment or other service with the Company or a Subsidiary, irrespective of whether such action or the Committee's determination occurs before or after termination of such Participant's employment or other service with the Company or any Subsidiary and irrespective of whether or not the Participant was terminated as a result of such Cause or Adverse Action, (i) all rights of the Participant under this Plan and any Award Agreements evidencing an Award then held by the Participant will terminate and be forfeited without notice of any kind, and (ii) the Committee in its sole discretion will have the authority to rescind the exercise, vesting or issuance of, or payment in respect of, any Awards of the Participant that were exercised, vested or issued, or as to which such payment was made, and to require the Participant to pay to the Company, within ten (10) days of receipt from the Company of notice of such rescission, any amount received or the amount of any gain realized as a result of such rescinded exercise, vesting, issuance or payment (including any dividends paid or other distributions made with respect to any shares of Common Stock subject to any Award). The Company may defer the exercise of any Option or Stock Appreciation Right for a period of up to six (6) months after receipt of the Participant's written notice of exercise or the issuance of share certificates upon the vesting of any Award for a period of up to six (6) months after the date of such vesting in order for the Committee to make any determination as to the existence of Cause or an Adverse Action. The Company will be entitled to withhold and deduct from future wages of the Participant (or from other amounts that may be due and owing to the Participant from the Company or a Subsidiary) or make other arrangements for the collection of all amounts necessary to satisfy such payment obligations. Unless otherwise provided by the Committee in an applicable Award Agreement, this Section 13.5(a) will not apply to any Participant following a Change in Control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Forfeiture or Clawback of Awards Under Applicable Law and Company Policy</u>. If the Company is required to prepare an accounting restatement due to the material noncompliance of the Company, as a result of misconduct, with any financial reporting requirement under the securities laws, then any Participant who is one of the individuals subject to automatic forfeiture under Section 304 of the Sarbanes-Oxley Act of 2002 will reimburse the Company for the amount of any Award received by such individual under this Plan during the 12-month period following the first public issuance or filing with the Securities and Exchange Commission, as the case may be, of the financial document embodying such financial reporting requirement. The Company also may seek to recover any Award made as required by the provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act or any other clawback, forfeiture or recoupment provision required by Applicable Law or under the requirements of any stock exchange or market upon which the shares of Common Stock (or instruments representing the shares of Common Stock) are then listed or traded. In addition, all Awards under this Plan will be subject to forfeiture or other penalties pursuant to any clawback or forfeiture policy of the Company, as in effect from time to time, and such forfeiture and/or penalty conditions or provisions as determined by the Committee and set forth in the applicable Award Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Payment of Withholding Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 <u>General Rules</u>. The Company is entitled to (a) withhold and deduct from future wages of the Participant (or from other amounts that may be due and owing to the Participant from the Company or a Subsidiary), or make other arrangements for the collection of, all amounts the Company reasonably determines are necessary to satisfy any and all federal, foreign, state and local withholding and employment related tax requirements attributable to an Award, including the grant, exercise, vesting or settlement of, or payment of dividends with respect to, an Award or a disqualifying disposition of stock received upon exercise of an Incentive Stock Option, or (b) require the Participant promptly to remit the amount of such withholding to the Company before taking any action, including issuing any shares of Common Stock, with respect to an Award. When withholding shares of Common Stock for taxes is effected under this Plan, it will be withheld only up to an amount based on the maximum statutory tax rates in the Participant's applicable tax jurisdiction or such other rate that will not trigger a negative accounting impact on the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 <u>Special Rules</u>. The Committee may, in its sole discretion and upon terms and conditions established by the Committee, permit or require a Participant to satisfy, in whole or in part, any withholding or employment related tax obligation described in Section 14.1 of this Plan by withholding shares of Common Stock underlying an Award, by electing to tender, or by attestation as to ownership of, Previously Acquired Shares, by delivery of a Broker Exercise Notice or a combination of such methods. For purposes of satisfying a Participant's withholding or employment-related tax obligation, shares of Common Stock withheld by the Company or Previously Acquired Shares tendered or covered by an attestation will be valued at their Fair Market Value on the Tax Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Change in Control</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1 <u>Definition of Change in Control</u>. Unless otherwise provided in an Award Agreement or Individual Agreement between the Participant and the Company or one of its Subsidiaries or Affiliates, a "<u>Change in Control</u>" will mean the occurrence of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The acquisition, other than from the Company, by any individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of fifty percent (50%) or more of either the then outstanding shares of Common Stock of the Company or the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors, but excluding, for this purpose, any such acquisition by the Company or any of its Subsidiaries, or any employee benefit plan (or related trust) of the Company or its Subsidiaries, or any entity with respect to which, following such acquisition, more than fifty percent (50%) of, respectively, the then outstanding equity of such entity and the combined voting power of the then outstanding voting equity of such entity entitled to vote generally in the election of all or substantially all of the members of such entity's governing body is then beneficially owned, directly or indirectly, by the individuals and entities who were the beneficial owners, respectively, of the Common Stock and voting securities of the Company immediately prior to such acquisition in substantially the same proportion as their ownership, immediately prior to such acquisition, of the then outstanding shares of Common Stock of the Company or the combined voting power of the then outstanding voting securities of the Company entitled to vote generally in the election of directors, as the case may be; or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The consummation of a reorganization, merger or consolidation of the Company, in each case, with respect to which all or substantially all of the individuals and entities who were the respective beneficial owners of the Common Stock and voting securities of the Company immediately prior to such reorganization, merger or consolidation do not, following such reorganization, merger or consolidation, beneficially own, directly or indirectly, more than fifty percent (50%) of, respectively, the then outstanding shares of Common Stock and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors, as the case may be, of the corporation resulting from such reorganization, merger or consolidation; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) a complete liquidation or dissolution of the Company or the sale or other disposition of all or substantially all of the assets of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2 <u>Effect of Change in Control</u>. Subject to the terms of the applicable Award Agreement or an Individual Agreement, in the event of a Change in Control, the Committee (as constituted prior to such Change in Control) may, in its discretion:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) require that shares of stock of the corporation resulting from such Change in Control, or a parent corporation thereof, be substituted for some or all of the shares of Common Stock subject to an outstanding Award, with an appropriate and equitable adjustment to such Award as shall be determined by the Board in accordance with Section 4.4;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) provide that (i) some or all outstanding Options shall become exercisable in full or in part, either immediately or, subject to Applicable Laws, upon a subsequent termination of employment, (ii) the restrictions or vesting applicable to some or all outstanding Restricted Stock Awards and Restricted Stock Units shall lapse in full or in part, either immediately or, subject to Applicable Laws, upon a subsequent termination of employment, (iii) the Performance Period applicable to some or all outstanding Awards shall lapse in full or in part, and/or (iv) the Performance Goals applicable to some or all outstanding Awards shall be deemed to be satisfied at the target or any other level; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) require outstanding Awards, in whole or in part, to be surrendered to the Company by the holder, and to be immediately cancelled by the Company, and to provide for the holder to receive (A) a cash payment in an amount determined pursuant to Section 15.3 below; (B) shares of capital stock of the corporation resulting from or succeeding to the business of the Company pursuant to such Change in Control, or a parent corporation thereof, having a fair market value not less than the amount determined under clause (A) above; or (C) a combination of the payment of cash pursuant to clause (A) above and the issuance of shares pursuant to clause (B) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3 <u>Alternative Treatment of Incentive Awards</u>. In connection with a Change in Control, the Committee in its sole discretion (but subject always to all Applicable Laws), either in an Award Agreement at the time of grant of an Award or at any time after the grant of such an Award, in lieu of providing a substitute award to a Participant pursuant to Section 15.2(a), may determine that any or all outstanding Awards granted under the Plan, whether or not exercisable or vested, as the case may be, will be canceled and terminated and that in connection with such cancellation and termination the holder of such Award will receive for each share of Common Stock subject to such Award a cash payment (or the delivery of shares of stock, other securities or a combination of cash, stock and securities with a fair market value (as determined by the Committee in good faith) equivalent to such cash payment) equal to the difference, if any, between the consideration received by stockholders of the Company in respect of a share of Common Stock in connection with such Change in Control and the purchase price per share, if any, under the Award, multiplied by the number of shares of Common Stock subject to such Award (or in which such Award is denominated); <u>provided</u>, <u>however</u>, that if such product is zero ($0) or less or to the extent that the Award is not then exercisable, the Award may, subject to Applicable Laws, be canceled and terminated without payment therefor. If any portion of the consideration pursuant to a Change in Control may be received by holders of shares of Common Stock on a contingent or delayed basis, the Committee may, in its sole discretion, determine the fair market value per share of such consideration as of the time of the Change in Control on the basis of the Committee's good faith estimate of the present value of the probable future payment of such consideration. Notwithstanding the foregoing, any shares of Common Stock issued pursuant to an Award that immediately prior to the effectiveness of the Change in Control are subject to no further restrictions pursuant to the Plan or an Award Agreement (other than pursuant to the securities laws) will be deemed to be outstanding shares of Common Stock and receive the same consideration as other outstanding shares of Common Stock in connection with the Change in Control.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4 <u>Limitation on Change in Control Payments</u>. Notwithstanding anything in this Section 15 to the contrary, if, with respect to a Participant, the acceleration of the vesting of an Award or the payment of cash in exchange for all or part of a Stock-Based Award (which acceleration or payment could be deemed a "payment" within the meaning of Section 280G(b)(2) of the Code), together with any other "payments" that such Participant has the right to receive from the Company or any corporation that is a member of an "affiliated group" (as defined in Section 1504(a) of the Code without regard to Section 1504(b) of the Code) of which the Company is a member, would constitute a "parachute payment" (as defined in Section 280G(b)(2) of the Code), then the "payments" to such Participant pursuant to Section 15.2 or Section 15.3 of this Plan will be reduced (or acceleration of vesting eliminated) to the largest amount as will result in no portion of such "payments" being subject to the excise tax imposed by Section 4999 of the Code; <u>provided</u>, <u>however</u>, that such reduction will be made only if the aggregate amount of the payments after such reduction exceeds the difference between (a) the amount of such payments absent such reduction minus (b) the aggregate amount of the excise tax imposed under Section 4999 of the Code attributable to any such excess parachute payments; and <u>provided,</u> <u>further</u> that such payments will be reduced (or acceleration of vesting eliminated) by first eliminating vesting of Options with an exercise price above the then Fair Market Value of a share of Common Stock that have a positive value for purposes of Section 280G of the Code, followed by reducing or eliminating payments or benefits pro rata among Awards that are deferred compensation subject to Section 409A of the Code, and, if a further reduction is necessary, by reducing or eliminating payments or benefits pro rata among Awards that are not subject to Section 409A of the Code. Notwithstanding the foregoing sentence, if a Participant is subject to a separate agreement with the Company or a Subsidiary that expressly addresses the potential application of Section 280G or 4999 of the Code, then this Section 15.4 will not apply and any "payments" to a Participant pursuant to Section 15 of this Plan will be treated as "payments" arising under such separate agreement; <u>provided</u>, <u>however</u>, such separate agreement may not modify the time or form of payment under any Award that constitutes deferred compensation subject to Section 409A of the Code if the modification would cause such Award to become subject to the adverse tax consequences specified in Section 409A of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5 <u>Exceptions</u>. Notwithstanding anything in this Section 15 to the contrary, individual Award Agreements or Individual Agreements between a Participant and the Company or one of its Subsidiaries or Affiliates may contain provisions with respect to vesting, payment or treatment of Awards upon the occurrence of a Change in Control, and the terms of any such Award Agreement or Individual Agreement will govern to the extent of any inconsistency with the terms of this Section 15. The Committee will not be obligated to treat all Awards subject to this Section 15 in the same manner. The timing of any payment under this Section 15 may be governed by any election to defer receipt of a payment made under a Company deferred compensation plan or arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Rights of Eligible Recipients and Participants; Transferability</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1 <u>Employment</u>. Nothing in this Plan or an Award Agreement will interfere with or limit in any way the right of the Company or any Subsidiary to terminate the employment or service of any Eligible Recipient or Participant at any time, nor confer upon any Eligible Recipient or Participant any right to continue employment or other service with the Company or any Subsidiary.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2 <u>No Rights to Awards</u>. No Participant or Eligible Recipient will have any claim to be granted any Award under this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3 <u>Rights as a Stockholder</u>. Except as otherwise provided in the Award Agreement, a Participant will have no rights as a stockholder with respect to shares of Common Stock covered by any Stock-Based Award unless and until the Participant becomes the holder of record of such shares of Common Stock and then subject to any restrictions or limitations as provided herein or in the Award Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4 <u>Restrictions on Transfer</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except pursuant to testamentary will or the laws of descent and distribution or as otherwise expressly permitted by subsections (b) and (c) below, no right or interest of any Participant in an Award prior to the exercise (in the case of Options or Stock Appreciation Rights) or vesting, issuance or settlement of such Award will be assignable or transferable, or subjected to any lien, during the lifetime of the Participant, either voluntarily or involuntarily, directly or indirectly, by operation of law or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) A Participant will be entitled to designate a beneficiary to receive an Award upon such Participant's death, and in the event of such Participant's death, payment of any amounts due under this Plan will be made to, and exercise of any Options or Stock Appreciation Rights (to the extent permitted pursuant to Section 13 of this Plan) may be made by, such beneficiary. If a deceased Participant has failed to designate a beneficiary, or if a beneficiary designated by the Participant fails to survive the Participant, payment of any amounts due under this Plan will be made to, and exercise of any Options or Stock Appreciation Rights (to the extent permitted pursuant to Section 13 of this Plan) may be made by, the Participant's legal representatives, heirs and legatees. If a deceased Participant has designated a beneficiary and such beneficiary survives the Participant but dies before complete payment of all amounts due under this Plan or exercise of all exercisable Options or Stock Appreciation Rights, then such payments will be made to, and the exercise of such Options or Stock Appreciation Rights may be made by, the legal representatives, heirs and legatees of the beneficiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Upon a Participant's request, the Committee may, in its sole discretion, permit a transfer of all or a portion of a Non-Statutory Stock Option, other than for value, to such Participant's child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, any person sharing such Participant's household (other than a tenant or employee), a trust in which any of the foregoing have more than fifty percent (50%) of the beneficial interests, a foundation in which any of the foregoing (or the Participant) control the management of assets, and any other entity in which these persons (or the Participant) own more than fifty percent (50%) of the voting interests. Any permitted transferee will remain subject to all the terms and conditions applicable to the Participant prior to the transfer. A permitted transfer may be conditioned upon such requirements as the Committee may, in its sole discretion, determine, including execution or delivery of appropriate acknowledgements, opinion of counsel, or other documents by the transferee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Committee may impose such restrictions on any shares of Common Stock acquired by a Participant under this Plan as it may deem advisable, including minimum holding period requirements, restrictions under applicable U.S. and foreign securities laws, under the requirements of any stock exchange or market upon which the Common Stock (or instruments representing the Common Stock) is then listed or traded, or under any blue sky or state securities laws applicable to such shares or the Company's insider trading policy.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5 <u>Non-Exclusivity of this Plan</u>. Nothing contained in this Plan is intended to modify or rescind any previously approved compensation plans or programs of the Company or create any limitations on the power or authority of the Board to adopt such additional or other compensation arrangements as the Board may deem necessary or desirable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Securities Law and Other Restrictions</u>.

Notwithstanding any other provision of this Plan or any Award Agreements entered into pursuant to this Plan, the Company will not be required to issue any shares of Common Stock under this Plan, and a Participant may not sell, assign, transfer or otherwise dispose of shares of Common Stock issued pursuant to Awards granted under this Plan, unless (a) there is in effect with respect to such shares a registration statement under the Securities Act and any applicable securities laws of a state or foreign jurisdiction or an exemption from such registration under the Securities Act and applicable state or foreign securities laws, and (b) there has been obtained any other consent, approval or permit from any other U.S. or foreign regulatory body which the Committee, in its sole discretion, deems necessary or advisable. The Company may condition such issuance, sale or transfer upon the receipt of any representations or agreements from the parties involved, and the placement of any legends on certificates representing shares of Common Stock, as may be deemed necessary or advisable by the Company in order to comply with such securities law or other restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Deferred Compensation; Compliance with Section 409A</u>.

It is intended that all Awards issued under this Plan be in a form and administered in a manner that will comply with the requirements of Section 409A of the Code, or the requirements of an exception to Section 409A of the Code, and the Award Agreements and this Plan will be construed and administered in a manner that is consistent with and gives effect to such intent. The Committee is authorized to adopt rules or regulations deemed necessary or appropriate to qualify for an exception from or to comply with the requirements of Section 409A of the Code. With respect to an Award that constitutes a deferral of compensation subject to Code Section 409A: (a) if any amount is payable under such Award upon a termination of service, a termination of service will be treated as having occurred only at such time the Participant has experienced a Separation from Service; (b) if any amount is payable under such Award upon a Disability, a Disability will be treated as having occurred only at such time the Participant has experienced a "disability" as such term is defined for purposes of Code Section 409A; (c) if any amount is payable under such Award on account of the occurrence of a Change in Control, a Change in Control will be treated as having occurred only at such time a "change in the ownership or effective control of the corporation or in the ownership of a substantial portion of the assets of the corporation" as such terms are defined for purposes of Code Section 409A, (d) if any amount becomes payable under such Award on account of a Participant's Separation from Service at such time as the Participant is a "specified employee" within the meaning of Code Section 409A, then no payment will be made, except as permitted under Code Section 409A, prior to the first business day after the earlier of (i) the date that is six months after the date of the Participant's Separation from Service or (ii) the Participant's death, and (e) no amendment to or payment under such Award will be made except and only to the extent permitted under Code Section 409A.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Amendment, Modification and Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.1 <u>Generally</u>. Subject to other subsections of this Section 19 and Sections 3.4 and 19.3 of this Plan, the Board at any time may suspend or terminate this Plan (or any portion thereof) or terminate any outstanding Award Agreement and the Committee, at any time and from time to time, may, subject to Applicable Laws, amend this Plan or amend or modify the terms of an outstanding Award. The Committee's power and authority to amend or modify the terms of an outstanding Award includes the authority to modify the number of shares of Common Stock or other terms and conditions of an Award, extend the term of an Award, accept the surrender of any outstanding Award or, to the extent not previously exercised or vested, authorize the grant of new Awards in substitution for surrendered Awards; <u>provided</u>, <u>however</u> that (i) the amendment or modification is permitted by Applicable Laws, (ii) the amended or modified terms are permitted by this Plan as then in effect, and (iii) any Participant adversely affected by such amended or modified terms has consented to such amendment or modification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.2 <u>Stockholder Approval</u>. No amendments to this Plan will be effective without approval of the Company's stockholders if: (a) stockholder approval of the amendment is then required pursuant to Section 422 of the Code, the rules of the primary stock exchange or stock market on which the Common Stock (or instruments representing the Common Stock) is then traded, applicable state corporate laws or regulations, applicable federal laws or regulations, and the applicable laws of any foreign country or jurisdiction where Awards are, or will be, granted under this Plan; or (b) such amendment would: (i) materially increase benefits accruing to Participants; (ii) increase the aggregate number of shares of Common Stock issued or issuable under this Plan except as provided in Section 4.1 hereof; (iii) increase any limitation set forth in this Plan on the number of shares of Common Stock which may be issued or the aggregate value of Awards which may be made, in respect of any type of Award to any single Participant during any specified period; (iv) modify the eligibility requirements for Participants in this Plan; or (v) reduce the minimum exercise price or grant price as set forth in Sections 6.3 and 7.3 of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.3 <u>Awards Previously Granted</u>. Notwithstanding any other provision of this Plan to the contrary, no termination, suspension or amendment of this Plan may adversely affect any outstanding Award without the consent of the affected Participant; <u>provided</u>, <u>however</u>, that this sentence will not impair the right of the Committee to take whatever action it deems appropriate under Sections 4.4, 9.7, 13, 15, 18 or 19.4 of this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19.4 <u>Amendments to Conform to Law</u>. Notwithstanding any other provision of this Plan to the contrary, the Committee may amend this Plan or an Award Agreement, to take effect retroactively or otherwise, as deemed necessary or advisable for the purpose of conforming this Plan or an Award Agreement to any present or future law relating to plans of this or similar nature, and to the administrative regulations and rulings promulgated thereunder. By accepting an Award under this Plan, a Participant agrees to any amendment made pursuant to this Section 19.4 to any Award granted under this Plan without further consideration or action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Substituted Awards.</u> 

The Committee may grant Awards under this Plan in substitution for stock and stock-based awards held by employees of another entity who become employees of the Company or a Subsidiary as a result of a merger or consolidation of the former employing entity with the Company or a Subsidiary or the acquisition by the Company or a Subsidiary of property or stock of the former employing corporation. The Committee may direct that the substitute Awards be granted on such terms and conditions as the Committee considers appropriate in the circumstances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Effective Date and Duration of this Plan</u>.

This Plan is effective as of the Effective Date. This Plan will terminate at midnight on the day before the ten (10) year anniversary of the Effective Date, and may be terminated prior to such time by Board action. No Award will be granted after termination of this Plan, but Awards outstanding upon termination of this Plan will remain outstanding in accordance with their applicable terms and conditions and the terms and conditions of this Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.1 <u>Usage</u>. In this Plan, except where otherwise indicated by clear contrary intention, (a) any masculine term used herein also will include the feminine, (b) the plural will include the singular, and the singular will include the plural, (c) "including" (and with correlative meaning "include") means including without limiting the generality of any description preceding such term, and (d) "or" is used in the inclusive sense of "and/or".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.2 <u>Relationship to Other Benefits</u>. Neither Awards made under this Plan nor shares of Common Stock or cash paid pursuant to such Awards under this Plan will be included as "compensation" for purposes of computing the benefits payable to any Participant under any pension, retirement (qualified or non-qualified), savings, profit sharing, group insurance, welfare, or benefit plan of the Company or any Subsidiary unless provided otherwise in such plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.3 <u>Fractional Shares</u>. No fractional shares of Common Stock will be issued or delivered under this Plan or any Award. The Committee will determine whether cash, other Awards or other property will be issued or paid in lieu of fractional shares of Common Stock or whether such fractional shares of Common Stock or any rights thereto will be forfeited or otherwise eliminated by rounding up or down.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.4 <u>Governing Law</u>. Except to the extent expressly provided herein or in connection with other matters of corporate governance and authority (all of which will be governed by the laws of the Company's jurisdiction of incorporation), the validity, construction, interpretation, administration and effect of this Plan and any rules, regulations and actions relating to this Plan will be governed by and construed exclusively in accordance with the laws of the State of Delaware, notwithstanding the conflicts of laws principles of any jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.5 <u>Successors</u>. All obligations of the Company under this Plan with respect to Awards granted hereunder will be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation or otherwise, of all or substantially all of the business or assets of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.6 <u>Construction</u>. Wherever possible, each provision of this Plan and any Award Agreement will be interpreted so that it is valid under the Applicable Law. If any provision of this Plan or any Award Agreement is to any extent invalid under the Applicable Law, that provision will still be effective to the extent it remains valid. The remainder of this Plan and the Award Agreement also will continue to be valid, and the entire Plan and Award Agreement will continue to be valid in other jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.7 <u>Delivery and Execution of Electronic Documents</u>. To the extent permitted by Applicable Law, the Company may: (a) deliver by email or other electronic means (including posting on a Web site maintained by the Company or by a third party under contract with the Company) all documents relating to this Plan or any Award hereunder (including prospectuses required by the Securities and Exchange Commission) and all other documents that the Company is required to deliver to its security holders (including annual reports and proxy statements), and (b) permit Participants to use electronic, internet or other non-paper means to execute applicable Plan documents (including Award Agreements) and take other actions under this Plan in a manner prescribed by the Committee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.8 <u>No Representations or Warranties Regarding Tax Effect</u>. Notwithstanding any provision of this Plan to the contrary, the Company and its Subsidiaries, the Board, and the Committee neither represent nor warrant the tax treatment under any federal, state, local, or foreign laws and regulations thereunder (individually and collectively referred to as the "<u>Tax Laws</u>") of any Award granted or any amounts paid to any Participant under this Plan including, but not limited to, when and to what extent such Awards or amounts may be subject to tax, penalties, and interest under the Tax Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.9 <u>Unfunded Plan</u>. Participants will have no right, title or interest whatsoever in or to any investments that the Company or its Subsidiaries may make to aid it in meeting its obligations under this Plan. Nothing contained in this Plan, and no action taken pursuant to its provisions, will create or be construed to create a trust of any kind, or a fiduciary relationship between the Company and any Participant, beneficiary, legal representative, or any other individual. To the extent that any individual acquires a right to receive payments from the Company or any Subsidiary under this Plan, such right will be no greater than the right of an unsecured general creditor of the Company or the Subsidiary, as the case may be. All payments to be made hereunder will be paid from the general funds of the Company or the Subsidiary, as the case may be, and no special or separate fund will be established and no segregation of assets will be made to assure payment of such amounts except as expressly set forth in this Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.10 <u>Indemnification</u>. Subject to any limitations and requirements of Delaware law, each individual who is or will have been a member of the Board, or a Committee appointed by the Board, or an officer or Employee of the Company to whom authority was delegated in accordance with Section 3.3 of this Plan, will be indemnified and held harmless by the Company against and from any loss, cost, liability or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under this Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company's approval, or paid by him or her in satisfaction of any judgment in any such action, suit or proceeding against him or her, provided he or she will give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his/her own behalf. The foregoing right of indemnification will not be exclusive of any other rights of indemnification to which such individuals may be entitled under the Company's Certificate of Incorporation or Bylaws, as a matter of law, or otherwise, or pursuant to any agreement with the Company, or any power that the Company may have to indemnify them or hold them harmless.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22.11 <u>ASX Listing</u>. Notwithstanding any other provision of this Plan, effective upon the admission of the Company to the official list of ASX Limited ABN 98 008 624 691 ("<u>ASX</u>"), this Plan shall become subject to the Listing Rules of ASX and any other rules of ASX which are applicable while the Company is admitted to the official list of ASX, each as amended or replaced from time to time, except to the extent of any waiver by ASX (the "<u>Listing Rules</u>"), and the other provisions as described in <u>Exhibit A</u> hereto, and this Plan shall be deemed to include any provisions necessary to comply with the Listing Rules.

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**EXHIBIT A**

<u>ASX LISTING PROVISIONS</u>

The following additional terms and conditions apply while the Company is admitted to the official list of ASX.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Additional definitions</u>.

Capitalized terms contained herein shall have the same meanings given to them in the Plan or as indicated below:

<u>ASX Settlement</u> means ASX Settlement Pty Limited (ABN 49 008 504 532).

<u>ASX Settlement Operating Rules</u> means the settlement and operating rules of the settlement facility providing by ASX Settlement.

<u>CDIs</u> mean a CHESS Depositary Interest, being a unit of beneficial ownership in a Share.

<u>CDI Ratio</u> means the ratio of CDIs to underlying Shares.

<u>CHESS Depositary Interests</u> has the meaning given to that term in the ASX Settlement Operating Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Fair Market Value.</u> 

If the Company's primary market for its securities is the ASX, the "<u>Fair Market Value</u>" shall mean, with respect to the Common Stock, as of any date a price that is based on the opening, closing, actual, high, low, or average selling prices of a CHESS Depositary Interest on ASX multiplied by the CDI Ratio and converting such price from Australian dollars to U.S. dollars using the prevailing exchange rate on the applicable date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Reorganizations</u>.

In the event the Company reorganizes its capital in any way, the rights of Participants with respect to any Options will be changed to the extent necessary to comply with the Listing Rules applying to a reorganization of capital at the time of the reorganization. A Participant shall not otherwise have the right to a change in the exercise price of an Option or a change to the number of securities received on exercise of an Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>New issues</u>.

A holder of an Option cannot participate in any new issues of securities to stockholders of the Company (including a bonus issue or pro-rata issue) without first exercising the Option for shares of Common Stock before the record date for the relevant issue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Inapplicable Plan conditions</u>.

Section 10 of the Plan does not apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Conflicts</u>.

In the event of a conflict, whether explicit or implied, between the provisions of the Plan and this <u>Exhibit</u><u> </u><u>A</u>, the latter shall govern and prevail.

## Exhibit 10.17

**Exhibit 10.17**

**NOTICE OF OPTION GRANT UNDER THE** 

**IMRICOR MEDICAL SYSTEMS, INC. 2019 EQUITY INCENTIVE PLAN**

Imricor Medical Systems, Inc., a Delaware corporation (the "<u>Company</u>"), pursuant to the Imricor Medical Systems, Inc. 2019 Equity Incentive Plan (as may be amended from time to time, the "<u>Plan</u>"), hereby grants to the individual named below (the "<u>Participant</u>") an option (the "<u>Option</u>") to purchase from the Company that number of shares of Common Stock (the "<u>Shares</u>"), as indicated below at an exercise price per Share equal to the amount as indicated below (the "<u>Exercise Price</u>"). The Option is subject to all of the terms and conditions set forth in this Notice of Option Grant (this "<u>Grant Notice</u>"), in the Option Award Agreement attached hereto (the "<u>Award Agreement</u>"), and in the Plan, all of which are incorporated herein in their entirety. Capitalized terms not otherwise defined herein will have the meaning set forth in the Plan. This Option grant has been made as of the grant date indicated below, which shall be referred to as the "<u>Grant Date</u>."

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| | |
|:---|:---|
| **Participant**: | [●] |
| **Grant Date**: | [●] |
| **Total Number of Shares** |  |
| **Subject to Option**: | [●], subject to adjustment as provided in the Plan. |
| **Exercise Price Per Share:** | $[●], subject to adjustment as provided in the Plan. |
| **Expiration Date:** | [●], but no later than the ten (10) year anniversary of the Grant Date, as provided in Section 3.2 of the Award Agreement. |
| **Type of Option:** | ¨ Incentive Stock Option ¨Non-Statutory Stock Option |

---

**Vesting Schedule**: Except as otherwise provided in Section 3 of the Award Agreement, the Participant's right to exercise the Option shall vest:

[on a cumulative basis, over a four-year period and as follows: (i) on the one-year anniversary of the Grant Date with respect to one-fourth of the number of shares subject thereto on the Grant Date, (ii) on the two-year anniversary of the Grant Date with respect to an additional one-fourth of the number of shares subject thereto on the Grant Date, (iii) on the three-year anniversary of the Grant Date with respect to an additional one fourth of the number of shares subject thereto on the Grant Date; and (iv) on the four-year anniversary of the Grant Date with respect to the remaining shares subject thereto on the Grant Date];

OR

[in full on [_________]/the [one/two/three/four]-year anniversary of the Grant Date];

Provided, however, that the Participant remains continuously employed by or provides services to the Company or any Qualifying Subsidiary through the applicable vesting date.

\* \* \*

------

**The Participant must accept the grant by executing this Grant Notice in the space provided below and returning the original execution copy to the Company or otherwise indicating affirmative acceptance of this grant electronically pursuant to procedures established by the Company and/or its third party administrator. The undersigned Participant acknowledges that he or she has received a copy of this Grant Notice, the Award Agreement, the Plan [and the Plan Prospectus]. As an express condition to this grant, the Participant agrees to be bound by the terms of this Grant Notice, the Award Agreement and the Plan. The Participant has read carefully and in its entirety the Award Agreement and specifically the acknowledgements in Section 7.9 thereof. This Grant Notice, the Award Agreement and the Plan set forth the entire agreement and understanding of the Company and the Participant with respect to the grant, vesting and administration of the Option award and supersede all prior agreements, arrangements, plans and understandings. This Grant Notice (which includes the attached Award Agreement) may be executed in two counterparts each of which will be deemed an original and both of which together will constitute one and the same instrument.**

---

| | |
|:---|:---|
| **IMRICOR MEDICAL SYSTEMS, INC.** | **PARTICIPANT** |
| By: [Name of Officer] | [Name of Participant] |
| Title: [Title of Officer] |  |

---

------

**OPTION AWARD AGREEMENT**

Pursuant to the Notice of Option Grant provided through Global Shares (the "<u>Grant Notice</u>") to which this Option Award Agreement (this "<u>Agreement</u>") is attached and which Grant Notice is included in and part of this Agreement, and subject to the terms of this Agreement and the Imricor Medical Systems, Inc. 2019 Equity Incentive Plan (as may be amended from time to time, the "<u>Plan</u>"), Imricor Medical Systems, Inc., a Delaware corporation (the "<u>Company</u>"), and the Participant named in the Grant Notice (the "<u>Participant</u>") agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Incorporation of Plan; Definitions</u>. The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement will be construed in accordance with the provisions of the Plan and any capitalized terms not otherwise defined in this Agreement or in the Grant Notice will have the same meanings as set forth in the Plan. The provisions of this Agreement will be interpreted as to be consistent with the Plan and any ambiguities in this Agreement will be interpreted by reference to the Plan. In the event that any provision of this Agreement is not authorized by or is inconsistent with the terms of the Plan, the terms of the Plan will prevail. Pursuant to and in accordance with the terms of the Plan, the Committee will have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations thereunder, and its decision will be final, binding and conclusive upon the Participant and his or her legal representatives in respect of any questions arising under the Plan or this Agreement. A copy of the Plan has been delivered to the Participant together with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Grant of Option</u>. The Company hereby grants to the Participant a stock option (the "<u>Option</u>"), which is either an Incentive Stock Option or a Non-Statutory Stock Option as indicated in the Grant Notice, to purchase from the Company that number of shares of Common Stock (collectively, the "<u>Shares</u>"), and at an exercise price per Share equal to the amount as indicated in the Grant Notice (the "<u>Exercise Price</u>"), all subject to adjustment as provided in the Plan, and subject to the terms, conditions and restrictions set forth herein and in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Vesting and Exercisability of Option; Expiration of Option; Forfeiture</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Vesting and Exercisability of Option</u>. Except as otherwise provided under this Agreement, the Participant's right to exercise the Option shall vest in accordance with the Vesting Schedule set forth in the Grant Notice (each, a "<u>Vesting Date</u>"); <u>provided</u>, <u>however</u>, that the Participant remains continuously employed by or provides services to the Company or any Subsidiary through the applicable Vesting Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Duration of Exercisability</u>. Any installments provided for in the Vesting Schedule set forth in the Grant Notice are cumulative. Each such installment which becomes vested and exercisable pursuant to the Vesting Schedule set forth in the Grant Notice shall remain vested and exercisable until the Expiration Date of the Option set forth in the Grant Notice (the "<u>Expiration Date</u>") or until the Option becomes unexercisable under Section 3.4 of this Agreement; <u>provided</u>, <u>however</u>, that if the exercise of the vested portion of the Option is prevented by the provisions of Section 17 of the Plan, the vested portion of the Option will remain exercisable until thirty (30) days after the date such exercise first would no longer be prevented by such provisions, but in any event no later than the Expiration Date of such Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Change in Control</u>. Except as otherwise provided in an Individual Agreement between the Company and the Participant, upon a Change in Control, the Option, effective immediately prior to such Change in Control but conditioned upon the completion of such Change in Control, will be fully vested and exercisable and the Committee will either (1) give the Participant a reasonable opportunity to exercise the Option before the transaction resulting in the Change in Control or (2) pay the Participant the difference between the exercise price for such Option and the per Share consideration provided to other similarly situated stockholders in such Change in Control; provided, however, that if the exercise price of such Option exceeds the aforementioned consideration provided, then the Option will be canceled and terminated without any payment. Thereafter, such Option will be cancelled.

------

3.4 <u>Effect of Termination of Employment or Other Service</u>. Except as otherwise provided in Section 13.4 or 13.5 of the Plan or an Individual Agreement between the Company or any Subsidiary and the Participant: (a) if the Participant's employment or service with the Company and all Subsidiaries is terminated by reason of the Participant's death, then the Option will vest and become exercisable immediately as to a pro rata percentage of the unvested portion of the Option scheduled to vest on the next applicable Vesting Date, with such proration based on the number of days during which the Participant was continuously employed by the Company or provided services to the Company or a Subsidiary beginning on the Grant Date, or if a Vesting Date has occurred, the most recent Vesting Date, and ending on the next applicable Vesting Date, multiplied by the number of Shares subject to the Option which were scheduled to vest on the next applicable Vesting Date, and the vested portion of the Option will remain exercisable for a period of one (1) year after the date of such termination (but in no event after the Expiration Date); (b) if the Participant's employment or service with the Company and all Subsidiaries is terminated by reason of the Participant's Disability, then the Option will, to the extent exercisable as of the date of such termination, remain exercisable for a period of one (1) year after the date of such termination (but in no event after the Expiration Date); and (c) if the Participant's employment or service with the Company and all Subsidiaries is terminated for any reason other than death or Disability, then the Option will, to the extent exercisable as of the date of such termination, remain exercisable for a period of ninety (90) days after the date of such termination (but in no event after the Expiration Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 <u>Effect of Actions Constituting Cause or Adverse Action; Forfeiture or Clawback</u>. The Option is subject to the forfeiture provisions set forth in Section 13.5 of the Plan, including those applicable if the Participant is determined by the Committee to have taken any action that would constitute Cause or an Adverse Action and any forfeiture or clawback requirement under Applicable Law or any policy adopted from time to time by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Method of Exercise</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Notice</u>. The Option may be exercised by the Participant in whole or in part from time to time, subject to the vesting and other conditions contained in the Plan and in this Agreement, by delivery, in person, by facsimile or electronic transmission (if confirmed) or through the mail, to the Company at its principal executive office in Minnesota (Attention: Chief Financial Officer), of a written notice of exercise. Such notice must be in a form satisfactory to the Committee, must identify the Option, must specify the number of Shares with respect to which the Option is being exercised, and must be signed by the person or persons so exercising the Option. Such notice must be accompanied by payment in full of the total purchase price of the Shares purchased. If the Option is being exercised, as provided by the Plan, by any person or persons other than the Participant, the notice must be accompanied by appropriate proof of right of such person or persons to exercise the Option. As soon as practicable after the effective exercise of the Option, the Participant will be recorded on the books of the Company as the owner of the Shares purchased, and the Company will deliver to the Participant one or more duly issued stock certificates or book-entry notations evidencing such ownership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>Payment</u>. The total purchase price of the Shares to be purchased upon exercise of the Option must be paid entirely in cash or cash equivalent (including check, bank draft or money order); <u>provided</u>, <u>however</u>, that the Committee, in its sole discretion, may allow such payments to be made, in whole or in part, by: (i) tender, or attestation as to ownership, of Previously Acquired Shares; (ii) a Broker Exercise Notice; (iii) a "net exercise" pursuant to Section 6.5(b) of the Plan; (iv) a promissory note (on terms acceptable to the Committee in its sole discretion); (v) such other consideration as may be approved by the Committee from time to time; or (vi) a combination of such methods.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Rights of Participant</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Employment or Other Service</u>. Nothing in this Agreement will interfere with or limit in any way the right of the Company or any Subsidiary to terminate the employment or service of the Participant at any time, nor confer upon the Participant any right to continue employment or service with the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Rights as a Stockholder</u>. The Participant will have no rights as, or privileges of, a stockholder of the Company, including, without limitation, voting rights and rights to dividends, with respect to Shares of Common Stock issuable upon exercise of the Option unless and until the Participant exercises the Option and becomes the holder of record of such Shares of Common Stock (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 4.4 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Restrictions on Transfer</u>. Except pursuant to testamentary will or the laws of descent and distribution or as otherwise expressly permitted by the Plan, no right or interest of the Participant in the Option prior to exercise of the Option will be assignable or transferable, or subjected to any lien, during the lifetime of the Participant, either voluntarily or involuntarily, directly or indirectly, by operation of law or otherwise. Any attempt to transfer, assign or encumber the Option other than in accordance with this Agreement and the Plan will be null and void and the Option will be forfeited and immediately returned to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Withholding Taxes</u>. The Company is entitled to (a) withhold and deduct from future wages of the Participant (or from other amounts that may be due and owing to the Participant from the Company or a Subsidiary), or make other arrangements for the collection of, all amounts the Company reasonably determines are necessary to satisfy any and all federal, foreign, state and local withholding and employment related tax requirements attributable to the Option, including the grant, vesting or exercise of, the Option, or (b) require the Participant promptly to remit the amount of such withholding to the Company before taking any action, including issuing any Shares upon exercise of the Option. The Committee may, in its sole discretion and upon terms and conditions established by the Committee, permit or require the Participant to satisfy, in whole or in part, any withholding or employment related tax obligation in connection with the Option by withholding Shares issuable upon exercise of the Option. When withholding Shares for taxes is effected under this Agreement and the Plan, it will be withheld only up to an amount based on the maximum statutory tax rates in the Participant's applicable tax jurisdiction or such other rate that will not trigger a negative accounting impact on the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Miscellaneous</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Governing Law</u>. The validity, construction, interpretation, administration and effect of this Agreement and any rules, regulations and actions relating to this Agreement will be governed by and construed exclusively in accordance with the laws of the State of Delaware, notwithstanding the conflicts of laws principles of any jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Interpretation</u>. Any dispute regarding the interpretation of this Agreement will be submitted by the Participant or by the Company forthwith to the Committee for review. The resolution of such a dispute by the Committee will be final and binding on all parties.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Successors and Assigns</u>. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement will inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Agreement will be binding upon the Participant and his or her heirs, executors, administrators, successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Notices</u>. All notices, requests or other communications provided for in this Agreement must be made, if to the Company, to Imricor Medical Systems, Inc., Attn: Chief Executive Officer, 400 Gateway Blvd, Burnsville, MN 55337, and if to the Participant, to the last known mailing address of the Participant contained in the records of the Company. All notices, requests or other communications provided for in this Agreement must be made in writing either (a) by personal delivery, (b) by facsimile or electronic mail with confirmation of receipt, (c) by mailing in the United States mails or (d) by express courier service. The notice, request or other communication will be deemed to be received upon personal delivery, upon confirmation of receipt of facsimile or electronic mail transmission or upon receipt by the party entitled thereto if by United States mail or express courier service; <u>provided</u>, <u>however</u>, that if a notice, request or other communication sent to the Company is not received during regular business hours, it will be deemed to be received on the next succeeding business day of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Electronic Delivery and Acceptance</u>. The Company may, in its sole discretion, deliver any documents related to the Option by electronic means or request the Participant's consent to participate in the Plan by electronic means. The Participant hereby consents to receive all applicable documentation by electronic delivery and to participate in the Plan through an on-line system established and maintained by the Company or a third party vendor designated by the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <u>Other Laws</u>. The Company will have the right to refuse to issue to the Participant Shares upon exercise of the Option if the Company acting in its absolute discretion determines that the issuance or transfer of such Shares might violate any Applicable Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.7 <u>Investment Representation</u>. The Participant hereby represents and covenants that (a) any Share acquired upon exercise of the Option will be acquired for investment and not with a view to the distribution thereof within the meaning of the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), unless such acquisition has been registered under the Securities Act and any applicable state securities laws; (b) any subsequent sale of any such Shares will be made either pursuant to an effective registration statement under the Securities Act and any applicable state securities laws, or pursuant to an exemption from registration under the Securities Act and such state securities laws; and (c) if requested by the Company, the Participant will submit a written statement, in form satisfactory to the Company, to the effect that such representation (x) is true and correct as of the date of vesting of any Shares hereunder or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) is true and correct as of the date of any sale of any such Share, as applicable. As a further condition precedent to the delivery to the Participant of any Shares upon exercise of the Option, the Participant will comply with all regulations and requirements of any regulatory authority having control of or supervision over the issuance or delivery of the Shares and, in connection therewith, will execute any documents which the Company will in its sole discretion deem necessary or advisable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.8 <u>Non-Negotiable Terms</u>. The terms of this Agreement and the Option are not negotiable, but the Participant may refuse to accept the Option by notifying the Company's Chief Executive Officer in writing within thirty (30) day after the Grant Date set forth in the Grant Notice.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.9 <u>Acknowledgement by the Participant</u>. In accepting the Option, the Participant hereby acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Plan is established voluntarily by the Company, it is discretionary in nature, and it may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The grant of the Option is voluntary and occasional and does not create any contractual or other right to receive future Option grants, or benefits in lieu of Options, even if Options have been granted repeatedly in the past.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) All decisions with respect to future Option grants, if any, will be at the sole discretion of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Participant is voluntarily participating in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The award of Options is an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to the Company, and which is outside the scope of the Participant's employment contract, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The award of Options is not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The award of Options or this Agreement will not be interpreted to form an employment contract with the Company or any Subsidiary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) The future value of the Shares issuable upon exercise of the Option is unknown and cannot be predicted with certainty and if the Option vest and is exercised by the Participant, the value of those Shares may increase or decrease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In consideration of the grant of the Option, no claim or entitlement to compensation or damages shall arise from termination of the Option or diminution in value of the Shares acquired upon exercise of the Option resulting from termination of employment by the Company (for any reason whatsoever and whether or not in breach of applicable labor laws) and the Participant hereby irrevocably releases the Company and its Subsidiaries from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by acceptance of the Option, the Participant shall be deemed irrevocably to have waived his or her entitlement to pursue such claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) In the event of termination of the Participant's employment with the Company (whether or not in breach of local labor laws), the Participant's right to receive the Option and vest in the Option under the Plan, if any, will terminate effective as of the date of termination of his or her active employment as determined in the sole discretion of the Committee and will not be extended by any notice of termination of employment or severance period provided to the Participant by contract or practice of the Company or any Subsidiary or mandated under local law and the Committee will have the sole discretion to determine the date of termination of the Participant's active employment for purposes of the Option.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Neither the Company nor any Subsidiary is providing any tax, legal or financial advice, nor is the Company or any Subsidiary making any recommendations regarding the Participant's participation in the Plan, acceptance of the Option, acquisition of Shares upon vesting and exercise of the Option or any sale of such Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) The Participant has been advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

\* \* \* \* \*

**SEE THE ASX ADDITIONAL INFORMATION PROVIDED THROUGH GLOBAL SHARES**

## Exhibit 10.18

**Exhibit 10.18**

**NOTICE OF RESTRICTED STOCK AWARD GRANT UNDER THE** 

**IMRICOR MEDICAL SYSTEMS, INC. 2019 EQUITY INCENTIVE PLAN**

Imricor Medical Systems, Inc., a Delaware corporation (the "<u>Company</u>"), pursuant to the Imricor Medical Systems, Inc. 2019 Equity Incentive Plan (as may be amended from time to time, the "<u>Plan</u>"), hereby grants to the individual named below (the "<u>Participant</u>") the number of shares of Common Stock, as indicated below (the "<u>Restricted Shares</u>"), which shall be granted in the form of Restricted Stock. The Restricted Stock Award is subject to all of the terms and conditions set forth in this Notice of Restricted Stock Award Grant (this "<u>Grant Notice</u>"), in the Restricted Stock Award Agreement attached hereto (the "<u>Award Agreement</u>"), and in the Plan, all of which are incorporated herein in their entirety. Capitalized terms not otherwise defined herein will have the meaning set forth in the Plan. This Restricted Stock grant has been made as of the grant date indicated below, which shall be referred to as the "<u>Grant Date</u>."

---

| | |
|:---|:---|
| **Participant**: | [●] |
| **Grant Date**: | [●] |
| **Number of Restricted Shares**: | [●] |
| **Purchase Price per Share, if any**: | $[●] |
| **Vesting Schedule**: | Except as otherwise provided in Section 3 of the Award Agreement, the Restricted Shares will vest as follows:<br>on a cumulative basis, 25% of the Restricted Shares shall vest annually on the anniversary of the Grant Date; <u>provided</u> <u>that</u> the Participant remains continuously employed by or provides services to the Company or any Subsidiary through the applicable vesting date. |

---

**The Participant must accept the grant by executing this Grant Notice in the space provided below and returning the original execution copy to the Company or otherwise indicating affirmative acceptance of this grant electronically pursuant to procedures established by the Company and/or its third party administrator. The undersigned Participant acknowledges that he or she has received a copy of this Grant Notice, the Award Agreement and the Plan. As an express condition to this grant, the Participant agrees to be bound by the terms of this Grant Notice, the Award Agreement and the Plan. The Participant has read carefully and in its entirety the Award Agreement and specifically the acknowledgements in Section 6.9 thereof. This Grant Notice, the Award Agreement and the Plan set forth the entire agreement and understanding of the Company and the Participant with respect to the grant, vesting and administration of the Restricted Stock Award and supersede all prior agreements, arrangements, plans and understandings. This Grant Notice (which includes the attached Award Agreement) may be executed in two counterparts each of which will be deemed an original and both of which together will constitute one and the same instrument.**

---

| | |
|:---|:---|
| **IMRICOR MEDICAL SYSTEMS, INC.** | **PARTICIPANT** |
| By: [●] | [●] |
| Title: [●] |  |

---

------

**RESTRICTED STOCK AWARD AGREEMENT**

Pursuant to the Notice of Restricted Stock Award Grant (the "<u>Grant Notice</u>") to which this Restricted Stock Award Agreement (this "<u>Agreement</u>") is attached and which Grant Notice is included in and part of this Agreement, and subject to the terms of this Agreement and the Imricor Medical Systems, Inc. 2019 Equity Incentive Plan (as may be amended from time to time, the "<u>Plan</u>"), Imricor Medical Systems, Inc., a Delaware corporation (the "<u>Company</u>"), and the Participant named in the Grant Notice (the "<u>Participant</u>") agree as follows:

1. <u>Incorporation of Plan; Definitions</u>. The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement will be construed in accordance with the provisions of the Plan and any capitalized terms not otherwise defined in this Agreement or in the Grant Notice will have the same meanings as set forth in the Plan. The provisions of this Agreement will be interpreted as to be consistent with the Plan and any ambiguities in this Agreement will be interpreted by reference to the Plan. In the event that any provision of this Agreement is not authorized by or is inconsistent with the terms of the Plan, the terms of the Plan will prevail. Pursuant to and in accordance with the terms of the Plan, the Committee will have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations thereunder, and its decision will be final, binding and conclusive upon the Participant and his or her legal representatives in respect of any questions arising under the Plan or this Agreement. A copy of the Plan has been delivered to the Participant together with this Agreement.

2. <u>Award of Restricted Shares</u>. The Company hereby grants to the Participant the number of shares of Common Stock provided in the Grant Notice (the "<u>Restricted Shares</u>"), subject to adjustment as provided in the Plan, and subject to the terms, conditions and restrictions set forth herein and in the Plan.

3. <u>Vesting of Restricted Shares; Forfeiture</u>.

3.1. <u>Vesting of Restricted Shares</u>. Except as otherwise provided under this Agreement, the Restricted Shares shall vest in accordance with the Vesting Schedule set forth in the Grant Notice (each, a "<u>Vesting Date</u>"); provided, however, that the Participant remains continuously employed by or provides services to the Company or any Subsidiary through the applicable Vesting Date.

3.2. <u>Change in Control</u>. Except as otherwise provided in an Individual Agreement between the Company and the Participant, upon a Change in Control, the unvested Restricted Shares, effective immediately prior to such Change in Control but conditioned upon the completion of such Change in Control, will become fully vested and free of any restrictions, regardless of whether the Participant remains in the employ or service of the Company or any Subsidiary or any acquiring entity or successor to the Company, except to the extent a replacement award is provided to the Participant.

3.3. <u>Effect of Termination of Employment or Other Service</u>. Except as otherwise provided in Section 13.4 or 13.5 of the Plan or an Individual Agreement between the Company or any Subsidiary and the Participant, if the Participant's employment or service with the Company and all Subsidiaries is terminated for any reason, including by reason of the Participant's death or disability, or in the case of a Participant that is an Employee, Retirement, then all outstanding unvested Restricted Shares held by the Participant as of the effective date of such termination or Retirement will be terminated and forfeited.

3.4. <u>Effect of Actions Constituting Cause or Adverse Action; Forfeiture or Clawback</u>. The Restricted Shares are subject to the forfeiture provisions set forth in Section 13.5 of the Plan, including those applicable if the Participant is determined by the Committee to have taken any action that would constitute Cause or an Adverse Action and any forfeiture or clawback requirement under Applicable Law or any policy adopted from time to time by the Company.

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4. <u>Rights of Participant</u>.

4.1. <u>Employment or Other Service</u>. Nothing in this Agreement will interfere with or limit in any way the right of the Company or any Subsidiary to terminate the employment or service of the Participant at any time, nor confer upon the Participant any right to continue employment or service with the Company or any Subsidiary.

4.2. <u>Rights as a Stockholder</u>. Upon issuance of the Restricted Shares in the Participant's name, the Participant will be the holder of record of the Restricted Shares and will have all rights of a stockholder with respect to such shares (including the right to vote such shares at any meeting of stockholders of the Company and the right to receive all dividends paid with respect to such shares), subject only to the terms and conditions imposed by this Agreement. Unless otherwise determined in accordance with Section 8.5 of the Plan, any dividends (of any type) declared on the shares of the Company's capital stock underlying the Restricted Shares and paid to the holders of record of such class or series of capital stock shall become payable to the Participant immediately upon the vesting, and with respect to the number, of Restricted Shares in accordance with the vesting schedule in the Grant Notice.

4.3. <u>Restrictions on Transfer</u>. Except pursuant to testamentary will or the laws of descent and distribution or as otherwise expressly permitted by the Plan, no right or interest of the Participant in the Restricted Shares prior to the vesting of such shares will be assignable or transferable, or subjected to any lien, during the lifetime of the Participant, either voluntarily or involuntarily, directly or indirectly, by operation of law or otherwise. Any attempt to transfer, assign or encumber the Restricted Shares other than in accordance with this Agreement and the Plan will be null and void and the Restricted Shares will be forfeited and immediately returned to the Company.

5. <u>Withholding Taxes</u>. The Company is entitled to (a) withhold and deduct from future wages of the Participant (or from other amounts that may be due and owing to the Participant from the Company or a Subsidiary), or make other arrangements for the collection of, all amounts the Company reasonably determines are necessary to satisfy any and all federal, foreign, state and local withholding and employment related tax requirements attributable to the Restricted Shares, or (b) require the Participant promptly to remit the amount of such withholding to the Company before taking any action with respect to the Restricted Shares. The Committee may, in its sole discretion and upon terms and conditions established by the Committee, permit or require the Participant to satisfy, in whole or in part, any withholding or employment related tax obligation in connection with the Restricted Shares by withholding shares of Common Stock from the vested Restricted Shares underlying the Participant's Restricted Stock Award. When withholding shares for taxes is effected under this Agreement and the Plan, it will be withheld only up to an amount based on the maximum statutory tax rates in the Participant's applicable tax jurisdiction or such other rate that will not trigger a negative accounting impact on the Company.

6. <u>Miscellaneous</u>.

6.1. <u>Governing Law</u>. The validity, construction, interpretation, administration and effect of this Agreement and any rules, regulations and actions relating to this Agreement will be governed by and construed exclusively in accordance with the laws of the State of Delaware, notwithstanding the conflicts of laws principles of any jurisdictions.

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6.2. <u>Interpretation</u>. Any dispute regarding the interpretation of this Agreement will be submitted by the Participant or by the Company forthwith to the Committee for review. The resolution of such a dispute by the Committee will be final and binding on all parties.

6.3. <u>Successors and Assigns</u>. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement will inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Agreement will be binding upon the Participant and his or her heirs, executors, administrators, successors and assigns.

6.4. <u>Notices</u>. All notices, requests or other communications provided for in this Agreement must be made, if to the Company, to Imricor Medical Systems, Inc., Attn: Chief Executive Officer, 400 Gateway Blvd, Burnsville, MN 55337, and if to the Participant, to the last known mailing address of the Participant contained in the records of the Company. All notices, requests or other communications provided for in this Agreement must be made in writing either (a) by personal delivery, (b) by facsimile or electronic mail with confirmation of receipt, (c) by mailing in the United States mails or (d) by express courier service. The notice, request or other communication will be deemed to be received upon personal delivery, upon confirmation of receipt of facsimile or electronic mail transmission or upon receipt by the party entitled thereto if by United States mail or express courier service; provided, however, that if a notice, request or other communication sent to the Company is not received during regular business hours, it will be deemed to be received on the next succeeding business day of the Company.

6.5. <u>Electronic Delivery and Acceptance</u>. The Company may, in its sole discretion, deliver any documents related to the Restricted Shares by electronic means or request the Participant's consent to participate in the Plan by electronic means. The Participant hereby consents to receive all applicable documentation by electronic delivery and to participate in the Plan through an on-line system established and maintained by the Company or a third party vendor designated by the Company.

6.6. <u>Other Laws</u>. The Company will have the right to refuse to issue to the Participant shares if the Company acting in its absolute discretion determines that the issuance or transfer of such shares might violate any Applicable Law.

6.7. <u>Investment Representation</u>. The Participant hereby represents and covenants that (a) any Restricted Shares will be acquired for investment and not with a view to the distribution thereof within the meaning of the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), unless such acquisition has been registered under the Securities Act and any applicable state securities laws; (b) any subsequent sale of any such shares will be made either pursuant to an effective registration statement under the Securities Act and any applicable state securities laws, or pursuant to an exemption from registration under the Securities Act and such state securities laws; and (c) if requested by the Company, the Participant will submit a written statement, in form satisfactory to the Company, to the effect that such representation (x) is true and correct as of the date of vesting of any shares hereunder or (y) is true and correct as of the date of any sale of any such share, as applicable. As a further condition precedent to the Restricted Shares becoming fully vested and free of any restrictions, the Participant will comply with all regulations and requirements of any regulatory authority having control of or supervision over the issuance or delivery of the shares and, in connection therewith, will execute any documents which the Company will in its sole discretion deem necessary or advisable.

6.8. <u>Non-Negotiable Terms</u>. The terms of this Agreement and the Restricted Shares are not negotiable, but the Participant may refuse to accept the Restricted Shares by notifying the Company's Chief Executive Officer in writing within thirty (30) day after the Grant Date set forth in the Grant Notice.

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6.9. <u>Acknowledgment by the Participant</u>. In accepting the Restricted Shares, the Participant hereby acknowledges that:

(a) The Plan is established voluntarily by the Company, it is discretionary in nature, and it may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan.

(b) The grant of Restricted Stock Awards is voluntary and occasional and does not create any contractual or other right to receive future grants of Restricted Stock Awards, or benefits in lieu of Restricted Stock Awards, even if Restricted Stock Awards have been granted repeatedly in the past.

(c) All decisions with respect to future grants of Restricted Stock Awards, if any, will be at the sole discretion of the Company.

(d) The Participant is voluntarily participating in the Plan.

(e) The award of Restricted Shares is an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to the Company, and which is outside the scope of the Participant's employment contract, if any.

(f) The award of Restricted Shares is not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company or any Subsidiary.

(g) The award of Restricted Shares or this Agreement will not be interpreted to form an employment contract with the Company or any Subsidiary.

(h) The future value of the Restricted Shares, once vested, is unknown and cannot be predicted with certainty, and the value of those shares may increase or decrease.

(i) In consideration of the grant of the Restricted Shares, no claim or entitlement to compensation or damages shall arise from termination of the Restricted Shares or diminution in value of the shares once the Restricted Shares fully vested and free of any restrictions resulting from termination of employment by the Company (for any reason whatsoever and whether or not in breach of applicable labor laws) and the Participant hereby irrevocably releases the Company and its Subsidiaries from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by acceptance of the Restricted Shares, the Participant shall be deemed irrevocably to have waived his or her entitlement to pursue such claim.

(j) In the event of termination of the Participant's employment with the Company (whether or not in breach of local labor laws), the Participant's right to vest in the unvested Restricted Shares under this Agreement and the Plan, if any, will terminate effective as of the date of termination of his or her active employment as determined in the sole discretion of the Committee and will not be extended by any notice of termination of employment or severance period provided to the Participant by contract or practice of the Company or any Subsidiary or mandated under local law and the Committee will have the sole discretion to determine the date of termination of the Participant's active employment for purposes of the Restricted Shares.

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(k) Neither the Company nor any Subsidiary is providing any tax, legal or financial advice, nor is the Company or any Subsidiary making any recommendations regarding the Participant's participation in the Plan, acceptance of the Restricted Shares, or any sale of such shares once the Restricted Shares become fully vested and free of any restrictions.

(l) The Participant has been advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

7. <u>Section 83(b) Election</u>. Under Code Section 83, the excess of the Fair Market Value of the Restricted Shares on the date any forfeiture restrictions applicable to such shares lapse over the purchase price, if any, paid for those shares will be reportable as ordinary income on the lapse date. Participant may elect under Code Section 83(b) to be taxed at the time the Restricted Shares are acquired, rather than when and as such Restricted Shares cease to be subject to such forfeiture restrictions. ***Such election must be filed with the Internal Revenue Service within thirty (30) days after the date of this Agreement. Participant should consult with his or her tax advisor to determine the tax consequences of acquiring the Restricted Shares and the advantages and disadvantages of filing the Code Section 83(b) election***. Even if the Fair Market Value of the Restricted Shares on the date of this Agreement equals the purchase price, if any, paid (and thus no tax is payable), the election must be made to avoid potentially adverse tax consequences in the future. ***The form for making this election is attached as <u>Exhibit A</u> hereto. Participant understands that failure to make this filing within the applicable thirty-day period will result in the recognition of ordinary income each time the forfeiture restrictions lapse. Participant acknowledges that it is Participant***'***s sole responsibility, and not the Company***'***s responsibility, to file a timely election under Code Section 83(b), even if Participant requests the Company or its representatives to make this filing on his or her behalf***. This filing should be made by registered or certified mail, return receipt requested, and Participant must retain a copy of the completed form for his personal records.

\* \* \* \* \*

**SEE EXHIBIT B FOR ADDITIONAL INFORMATION**

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**EXHIBIT A** – **SECTION 83(B) ELECTION**

*The undersigned taxpayer hereby elects, pursuant to* § *83(b) of the Internal Revenue Code of 1986, as amended, to include in gross income as compensation for services the excess (if any) of the fair market value of the shares described below over the amount paid for those shares.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The name, taxpayer identification number, address of the undersigned, and the taxable year for which this election is being made are:

TAXPAYER'S NAME: [●]

TAXPAYER'S SOCIAL SECURITY NUMBER: [●]

ADDRESS: [●]

TAXABLE YEAR: [Calendar Year]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The property which is the subject of this election is [●] shares of common stock of Imricor Medical Systems, Inc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The property was transferred to the undersigned on [●].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The property is subject to the following restrictions: The shares of common stock vest (and the restrictions lapse) as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The fair market value of the property at the time of transfer (determined without regard to any restriction other than a nonlapse restriction as defined in § 1.83-3(h) of the Income Tax Regulations) is: [●] per share x [●] shares = $[●].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. For the property transferred, the undersigned paid $0.00 per share x [●] shares = $0.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The amount to include in gross income is $[●].

*The undersigned taxpayer will file this election with the Internal Revenue Service office with which taxpayer files his or her annual income tax return not later than 30 days after the date of transfer of the property. A copy of the election also will be furnished to the person for whom the services were performed. The undersigned is the person performing the services in connection with which the property was transferred.*

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| | |
|:---|:---|
| Dated: |  |
|  | Signature |

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**EXHIBIT B** – **ADDITIONAL INFORMATION**

THE COMPANY IS NOT LICENSED TO GIVE FINANCIAL PRODUCT ADVICE. THE INFORMATION IN THIS EXHIBIT A IS NOT FINANCIAL PRODUCT ADVICE AND IS GENERAL INFORMATION ONLY. ANY ADVICE GIVEN BY THE COMPANY OR THE COMMITTEE IN RELATION TO SECURITIES AND AWARDS OFFERED UNDER THE PLAN DOES NOT TAKE INTO ACCOUNT THE PARTICIPANT'S OBJECTIVES, FINANCIAL SITUATION AND NEEDS. EACH PARTICIPANT SHOULD CONSIDER OBTAINING THEIR OWN FINANCIAL PRODUCT ADVICE FROM A PERSON WHO IS LICENSED BY THE AUSTRALIAN SECURITIES AND INVESTMENTS COMMISSION (OR AS APPROPRIATE IN YOUR COUNTRY) TO GIVE SUCH ADVICE.

A COPY OF THE PLAN ACCOMPANIES AND IS MADE A PART OF THIS GRANT NOTICE AND AGREEMENT.

**General information about risks**

Each Participant should be aware that there are risks associated with acquiring and holding Restricted Shares under the Plan, including as follows:

● The price at which CHESS Depositary Interests (" <u>CDIs</u> ") representing shares of Common Stock trade on ASX may fluctuate in response to a number of factors, including general economic factors and general market sentiment in in the U.S. and Australia as well as factors which are specific to the Company, such as the market adoption of the Company's MRI-compatible products. Accordingly, there is a risk that the trading price on ASX could decrease.

● The Company has never paid a dividend and does not intend on paying dividends in the foreseeable future which means that if your Restricted Shares vest, you may not receive any return on the shares of Common Stock from dividends.

● The trading market in CDIs may not be active, which means that if your Restricted Shares vest, your ability to trade those CDIs in the future (subject to any other restrictions that may apply, including under the Company's Security Trading Policy) may be adversely affected.

● Acquiring and holding Restricted Shares, shares of Common Stock and CDIs may have tax implications for you and the tax regime applying to you may change, accordingly you should consult with your personal tax adviser.

● Termination of your employment or service may result in the termination of your Restricted Shares in accordance with the terms of the Plan and the Agreement. You may not receive any shares of Common Stock if your employment or service is terminated.

The Company's most recent ASX announcements should be referred to for details regarding the operations, business, risk and performance of the Company. You should be aware however that past performance is not indicative of future performance and neither the Company nor the Committee warrant the future performance of the Company.

The above information only includes general information about the risks of acquiring and holding Restricted Shares. There may also be other risks of participating in the Plan that are specific to your circumstances. As a result, it is recommended that you seek advice from a licensed professional as to whether or not participation in the Plan is suitable for you.

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**Acquisition Price**

Restricted Shares are issued under the Plan for nil monetary consideration.

*Note that Participants can obtain the prevailing market price (in Australian dollars) of the CDIs on ASX at* <u>*www.asx.com.au*</u> *under the ASX code* "*IMR*"*.*

**Class Order**

The Grant Notice and the Agreement (including this Exhibit A) is an "offer document" for the purpose of ASIC Class Order 14/1000 *Employee incentive schemes: Listed bodies* (the "<u>Class Order</u>") and is issued in accordance with that Class Order. The Class Order provides conditional relief from disclosure and licensing provisions of the Australian *Corporations Act 2001* (Commonwealth of Australia) for offers made to full-time and part-time employees, directors (including non-executive directors) and certain contractors and casual employees under an employee incentive scheme by a body listed on the ASX. The Class Order also provides conditional relief from the advertising and hawking provisions for some employee incentive schemes.

## Exhibit 10.19

**Exhibit 10.19**

**IMRICOR MEDICAL SYSTEMS, INC.**

**2019 EQUITY INCENTIVE PLAN**

**AUSTRALIAN SUB-PLAN**

The following terms and conditions (the "***Australian Sub-Plan***") shall apply to the award of Options granted to Participants under the 2019 Equity Incentive Plan (the "***Plan***") of Imricor Medical Systems, Inc. (the "***Company***") who are resident in Australia. This Australian Sub-Plan has been adopted by the Board in accordance with Sections 3.2(i) and 3.4 of the Plan and may be amended, suspended or terminated by the Board in accordance with Section 3.2(f) of the Plan. In the event of a conflict, whether explicit or implied, between the provisions of the Plan and the Australian Sub-Plan, the latter shall govern and prevail.

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| | |
|:---|:---|
| 1 | **GENERAL.** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **Eligibility.** Awards of Options may be granted under the Plan to residents of Australia that are Eligible Recipients of the Company or a Qualifying Subsidiary eligible to be granted such Options pursuant to Sections 6 or 10 of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **Governing rules.** Awards under the Australian Sub-Plan shall be governed by the Plan, as supplemented or modified by this Australian Sub-Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) **Inapplicable Plan conditions.** Sections 6.5(a)(iii), 6.5(b) and 18 of the Plan shall not apply to Awards under the Australian Sub-Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **Application of Subdivision 83A-C.** Subject to the requirements of the ITAA 1997, Subdivision 83A-C of the ITAA 1997 applies to Awards under the Australian Sub-Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) **Options apply to common stock**. Options may only be granted under the Australian Sub-Plan in respect of the common stock of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) **Maximum interest in the Company**. Notwithstanding anything in Sections 6.3 or 6.4 of the Plan, no Awards of Options will be granted under the Australian Sub-Plan where the grant would result in the Eligible Recipient possessing common stock and / or Options in respect of more than 10% of the shares in, or voting power at a general meeting of, the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) **Transferability of Options.** The Board will only exercise its powers under Section 16.4 of the Plan to permit the assignment or transfer of Options to which this Australian Sub-Plan applies in exceptional circumstances or cases of financial hardship.

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| | |
|:---|:---|
| 2 | **DEFINITIONS.** |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Capitalized terms contained herein shall have the same meanings given to them in the Plan or as indicated in Section 2(b) below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In this Australian Sub-Plan, the following definitions will apply to the capitalized terms indicated below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)  ***"ITAA 1936***"  **** ** means the *Income Tax Assessment Act 1936* (C'wth of Aust.).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)  ***"ITAA 1997***"  **** ** means the *Income Tax Assessment Act 1997* (C'wth of Aust.).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)  ***"Qualifying Subsidiary***"  **** ** means a subsidiary (as defined in section 995-1 of the ITAA 1997) of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)  ***"Resident of Australia***" means a person that is a resident of Australia within the meaning given in section 6 of the ITAA 1936 at the time an Award is granted.

## Exhibit 10.20

**Exhibit 10.20**

**NOTICE OF OPTION GRANT UNDER THE** 

**IMRICOR MEDICAL SYSTEMS, INC. 2019 EQUITY INCENTIVE PLAN**

**(FOR AUSTRALIAN RESIDENTS)**

Imricor Medical Systems, Inc., a Delaware corporation (the "<u>Company</u>"), pursuant to the Imricor Medical Systems, Inc. 2019 Equity Incentive Plan as modified and supplemented by the 2019 Equity Incentive Plan Australian Sub-Plan adopted by the Board on August 27, 2019 (the "<u>Australian Sub-Plan</u>", and together, the "<u>Plan</u>", as may be amended from time to time), hereby grants to the individual named below (the "<u>Participant</u>") an option (the "<u>Option</u>") to purchase from the Company that number of shares of common stock (the "<u>Shares</u>"), as indicated below at an exercise price per Share equal to the amount as indicated below (the "<u>Exercise Price</u>"). The Option is subject to all of the terms and conditions set forth in this Notice of Option Grant (this "<u>Grant Notice</u>"), in the Option Award Agreement attached hereto (the "<u>Award Agreement</u>"), and in the Plan, all of which are incorporated herein in their entirety. Capitalized terms not otherwise defined herein will have the meaning set forth in the Plan. This Option grant has been made as of the grant date indicated below, which shall be referred to as the "<u>Grant Date</u>."

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| | |
|:---|:---|
| **Participant:** | [●] |
| **Grant Date:** | [●] |
| **Total Number of Shares Subject to Option:** | [●], subject to adjustment as provided in the Plan. |
| **Exercise Price Per Share:** | $[●], subject to adjustment as provided in the Plan. |
| **Expiration Date:** | [●], but no later than the ten (10) year anniversary of the Grant Date, as provided in Section 3.2 of the Award Agreement. |
| **Type of Option:** | ☐ Incentive Stock Option ☐ Non-Statutory Stock Option |
| **Vesting Schedule:** | Except as otherwise provided in Section 3 of the Award Agreement, the Participant's right to exercise the Option shall vest: |
|  | [on a cumulative basis, over a four-year period and as follows: (i) on the one-year anniversary of the Grant Date with respect to one-fourth of the number of shares subject thereto on the Grant Date, (ii) on the two-year anniversary of the Grant Date with respect to an additional one-fourth of the number of shares subject thereto on the Grant Date, (iii) on the three-year anniversary of the Grant Date with respect to an additional one fourth of the number of shares subject thereto on the Grant Date; and (iv) on the four-year anniversary of the Grant Date with respect to the remaining shares subject thereto on the Grant Date]; |
|  | OR |
|  | [in full on [_________]/the [one/two/three/four]-year anniversary of the Grant Date]; |
|  | Provided, however, that the Participant remains continuously employed by or provides services to the Company or any Qualifying Subsidiary through the applicable vesting date. |

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\* \* \*

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**The Participant must accept the grant by executing this Grant Notice in the space provided below and returning the original execution copy to the Company or otherwise indicating affirmative acceptance of this grant electronically pursuant to procedures established by the Company and/or its third party administrator. The undersigned Participant acknowledges that he or she has received a copy of this Grant Notice, the Award Agreement, the Plan [and the Plan Prospectus]. As an express condition to this grant, the Participant agrees to be bound by the terms of this Grant Notice, the Award Agreement and the Plan. The Participant has read carefully and in its entirety the Award Agreement and specifically the acknowledgements in Section 7.9 thereof. This Grant Notice, the Award Agreement and the Plan set forth the entire agreement and understanding of the Company and the Participant with respect to the grant, vesting and administration of the Option award and supersede all prior agreements, arrangements, plans and understandings. This Grant Notice (which includes the attached Award Agreement) may be executed in two counterparts each of which will be deemed an original and both of which together will constitute one and the same instrument.**

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| | |
|:---|:---|
| **IMRICOR MEDICAL SYSTEMS, INC.** | **PARTICIPANT** |
| By: [Name of Officer] | [Name of Participant] |
| Title: [Title of Officer] |  |

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**OPTION AWARD AGREEMENT**

Pursuant to the Notice of Option Grant (the "<u>Grant Notice</u>") to which this Option Award Agreement (this "<u>Agreement</u>") is attached and which Grant Notice is included in and part of this Agreement, and subject to the terms of this Agreement and the Imricor Medical Solutions, Inc. 2019 Equity Incentive Plan as modified and supplemented by the 2019 Equity Incentive Plan Australian Sub-Plan adopted by the Board on August 27, 2019 (the "<u>Australian Sub-Plan</u>", and together, the "<u>Plan</u>", as may be amended from time to time), Imricor Medical Solutions, Inc., a Delaware corporation (the "<u>Company</u>"), and the Participant named in the Grant Notice (the "<u>Participant</u>") agree as follows:

1. <u>Incorporation of Plan; Definitions</u>. The provisions of the Plan are hereby incorporated herein by reference. Except as otherwise expressly set forth herein, this Agreement will be construed in accordance with the provisions of the Plan and any capitalized terms not otherwise defined in this Agreement or in the Grant Notice will have the same meanings as set forth in the Plan. The provisions of this Agreement will be interpreted as to be consistent with the Plan and any ambiguities in this Agreement will be interpreted by reference to the Plan. In the event that any provision of this Agreement is not authorized by or is inconsistent with the terms of the Plan, the terms of the Plan will prevail. Pursuant to and in accordance with the terms of the Plan, the Committee will have final authority to interpret and construe the Plan and this Agreement and to make any and all determinations thereunder, and its decision will be final, binding and conclusive upon the Participant and his or her legal representatives in respect of any questions arising under the Plan or this Agreement. A copy of the Plan [and the Plan Prospectus] have been delivered to the Participant together with this Agreement.

2. <u>Grant of Option</u>. The Company hereby grants to the Participant a stock option (the "<u>Option</u>"), which is either an Incentive Stock Option or a Non-Statutory Stock Option as indicated in the Grant Notice, to purchase from the Company that number of shares of common stock (collectively, the "<u>Shares</u>"), and at an exercise price per Share equal to the amount as indicated in the Grant Notice (the "<u>Exercise Price</u>"), all subject to adjustment as provided in the Plan, and subject to the terms, conditions and restrictions set forth herein and in the Plan.

3. <u>Vesting and Exercisability of Option; Expiration of Option; Forfeiture</u>.

3.1 <u>Vesting and Exercisability of Option</u>. Except as otherwise provided under this Agreement, the Participant's right to exercise the Option shall vest in accordance with the Vesting Schedule set forth in the Grant Notice (each, a "<u>Vesting Date</u>"); <u>provided</u>, <u>however</u>, that the Participant remains continuously employed by or provides services to the Company or any Qualifying Subsidiary through the applicable Vesting Date.

3.2 <u>Duration of Exercisability</u>. Any installments provided for in the Vesting Schedule set forth in the Grant Notice are cumulative. Each such installment which becomes vested and exercisable pursuant to the Vesting Schedule set forth in the Grant Notice shall remain vested and exercisable until the Expiration Date of the Option set forth in the Grant Notice (the "<u>Expiration Date</u>") or until the Option becomes unexercisable under Section 3.4 of this Agreement; <u>provided</u>, <u>however</u>, that if the exercise of the vested portion of the Option is prevented by the provisions of Section 17 of the Plan, the vested portion of the Option will remain exercisable until thirty (30) days after the date such exercise first would no longer be prevented by such provisions, but in any event no later than the Expiration Date of such Option.

3.3 <u>Change in Control</u>. Except as otherwise provided in an Individual Agreement between the Company and the Participant, upon a Change in Control, the Option will be subject to Section 15 of the Plan.

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3.4 <u>Effect of Termination of Employment or Other Service</u>. Except as otherwise provided in Section 13.4 or 13.5 of the Plan or an Individual Agreement between the Company or any Qualifying Subsidiary and the Participant: (a) if the Participant's employment or service with the Company and all Subsidiaries is terminated by reason of the Participant's death, then the Option will vest and become exercisable immediately as to a pro rata percentage of the unvested portion of the Option scheduled to vest on the next applicable Vesting Date, with such proration based on the number of days during which the Participant was continuously employed by the Company or provided services to the Company or a Qualifying Subsidiary beginning on the Grant Date, or if a Vesting Date has occurred, the most recent Vesting Date, and ending on the next applicable Vesting Date, multiplied by the number of Shares subject to the Option which were scheduled to vest on the next applicable Vesting Date, and the vested portion of the Option will remain exercisable for a period of one (1) year after the date of such termination (but in no event after the Expiration Date); (b) if the Participant's employment or service with the Company and all Subsidiaries is terminated by reason of the Participant's Disability, then the Option will, to the extent exercisable as of the date of such termination, remain exercisable for a period of one (1) year after the date of such termination (but in no event after the Expiration Date); and (c) if the Participant's employment or service with the Company and all Subsidiaries is terminated for any reason other than death or Disability, then the Option will, to the extent exercisable as of the date of such termination, remain exercisable for a period of ninety (90) days after the date of such termination (but in no event after the Expiration Date).

3.5 <u>Effect of Actions Constituting Cause or Adverse Action; Forfeiture or Clawback</u>. The Option is subject to the forfeiture provisions set forth in Section 13.5 of the Plan, including those applicable if the Participant is determined by the Committee to have taken any action that would constitute Cause or an Adverse Action and any forfeiture or clawback requirement under Applicable Law or any policy adopted from time to time by the Company.

4. <u>Method of Exercise</u>.

4.1 <u>Notice</u>. The Option may be exercised by the Participant in whole or in part from time to time, subject to the vesting and other conditions contained in the Plan and in this Agreement, by delivery, in person, by facsimile or electronic transmission (if confirmed) or through the mail, to the Company at its principal executive office in Montana (Attention: Chief Financial Officer), of a written notice of exercise. Such notice must be in a form satisfactory to the Committee, must identify the Option, must specify the number of Shares with respect to which the Option is being exercised, and must be signed by the person or persons so exercising the Option. Such notice must be accompanied by payment in full of the total purchase price of the Shares purchased. If the Option is being exercised, as provided by the Plan, by any person or persons other than the Participant, the notice must be accompanied by appropriate proof of right of such person or persons to exercise the Option. As soon as practicable after the effective exercise of the Option, the Participant will be recorded on the books of the Company as the owner of the Shares purchased, and the Company will deliver to the Participant one or more duly issued stock certificates or book-entry notations evidencing such ownership.

4.2 <u>Payment</u>. The total purchase price of the Shares to be purchased upon exercise of the Option must be paid entirely in cash or cash equivalent (including check, bank draft or money order); <u>provided</u>, <u>however</u>, that the Committee, in its sole discretion, may allow such payments to be made, in whole or in part, by: (i) tender, or attestation as to ownership, of Previously Acquired Shares; (ii) a Broker Exercise Notice; (iii) a promissory note (on terms acceptable to the Committee in its sole discretion); (iv) such other consideration as may be approved by the Committee from time to time; or (v) a combination of such methods.

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5. <u>Rights of Participant</u>.

5.1 <u>Employment or Other Service</u>. Nothing in this Agreement will interfere with or limit in any way the right of the Company or any Qualifying Subsidiary to terminate the employment or service of the Participant at any time, nor confer upon the Participant any right to continue employment or service with the Company or any Qualifying Subsidiary.

5.2 <u>Rights as a Stockholder</u>. The Participant will have no rights as, or privileges of, a stockholder of the Company, including, without limitation, voting rights and rights to dividends, with respect to Shares of Common Stock issuable upon exercise of the Option unless and until the Participant exercises the Option and becomes the holder of record of such Shares of common stock (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company). No adjustment shall be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 4.4 of the Plan.

5.3 <u>Restrictions on Transfer</u>. Except as provided under the Australian Sub-Plan, no right or interest of the Participant in the Option prior to exercise of the Option will be assignable or transferable, or subjected to any lien, during the lifetime of the Participant, either voluntarily or involuntarily, directly or indirectly, by operation of law or otherwise. Any attempt to transfer, assign or encumber the Option other than in accordance with this Agreement and the Plan will be null and void and the Option will be forfeited and immediately returned to the Company.

6. <u>Withholding Taxes</u>. The Company is entitled to (a) withhold and deduct from future wages of the Participant (or from other amounts that may be due and owing to the Participant from the Company or a Qualifying Subsidiary), or make other arrangements for the collection of, all amounts the Company reasonably determines are necessary to satisfy any and all federal, foreign, state and local withholding tax, employment related tax obligations, or other tax obligations attributable to the Option, including the grant, vesting or exercise of, the Option, or (b) require the Participant promptly to remit the amount of such withholding to the Company before taking any action, including issuing any Shares upon exercise of the Option. The Committee may, in its sole discretion and upon terms and conditions established by the Committee, permit or require the Participant to satisfy, in whole or in part, any withholding or employment related tax obligation in connection with the Option by withholding Shares issuable upon exercise of the Option. When withholding Shares for taxes is effected under this Agreement and the Plan, it will be withheld only up to an amount based on the maximum statutory tax rates in the Participant's applicable tax jurisdiction or such other rate that will not trigger a negative accounting impact on the Company.

7. <u>Miscellaneous</u>.

7.1 <u>Governing Law</u>. The validity, construction, interpretation, administration and effect of this Agreement and any rules, regulations and actions relating to this Agreement will be governed by and construed exclusively in accordance with the laws of the State of Delaware, notwithstanding the conflicts of laws principles of any jurisdictions.

7.2 <u>Interpretation</u>. Any dispute regarding the interpretation of this Agreement will be submitted by the Participant or by the Company forthwith to the Committee for review. The resolution of such a dispute by the Committee will be final and binding on all parties.

7.3 <u>Successors and Assigns</u>. The Company may assign any of its rights under this Agreement to single or multiple assignees, and this Agreement will inure to the benefit of the successors and assigns of the Company. Subject to the restrictions on transfer herein set forth, this Agreement will be binding upon the Participant and his or her heirs, executors, administrators, successors and assigns.

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7.4 <u>Notices</u>. All notices, requests or other communications provided for in this Agreement must be made, if to the Company, to Imricor Medical Systems, Inc., Attn: [•], 400 Gateway Blvd, Burnsville, MN 55337, and if to the Participant, to the last known mailing address of the Participant contained in the records of the Company. All notices, requests or other communications provided for in this Agreement must be made in writing either (a) by personal delivery, (b) by facsimile or electronic mail with confirmation of receipt, (c) by mailing in the United States mails or (d) by express courier service. The notice, request or other communication will be deemed to be received upon personal delivery, upon confirmation of receipt of facsimile or electronic mail transmission or upon receipt by the party entitled thereto if by United States mail or express courier service; <u>provided</u>, <u>however</u>, that if a notice, request or other communication sent to the Company is not received during regular business hours, it will be deemed to be received on the next succeeding business day of the Company.

7.5 <u>Electronic Delivery and Acceptance</u>. The Company may, in its sole discretion, deliver any documents related to the Option by electronic means or request the Participant's consent to participate in the Plan by electronic means. The Participant hereby consents to receive all applicable documentation by electronic delivery and to participate in the Plan through an on-line system established and maintained by the Company or a third party vendor designated by the Company.

7.6 <u>Other Laws</u>. The Company will have the right to refuse to issue to the Participant Shares upon exercise of the Option if the Company acting in its absolute discretion determines that the issuance or transfer of such Shares might violate any Applicable Law.

7.7 <u>Investment Representation</u>. The Participant hereby represents and covenants that (a) any Share acquired upon exercise of the Option will be acquired for investment and not with a view to the distribution thereof within the meaning of the Securities Act of 1933, as amended (the "<u>Securities Act</u>"), unless such acquisition has been registered under the Securities Act and any applicable state securities laws; (b) any subsequent sale of any such Shares will be made either pursuant to an effective registration statement under the Securities Act and any applicable state securities laws, or pursuant to an exemption from registration under the Securities Act and such state securities laws; and (c) if requested by the Company, the Participant will submit a written statement, in form satisfactory to the Company, to the effect that such representation (x) is true and correct as of the date of vesting of any Shares hereunder or (y) is true and correct as of the date of any sale of any such Share, as applicable. As a further condition precedent to the delivery to the Participant of any Shares upon exercise of the Option, the Participant will comply with all regulations and requirements of any regulatory authority having control of or supervision over the issuance or delivery of the Shares and, in connection therewith, will execute any documents which the Company will in its sole discretion deem necessary or advisable.

7.8 <u>Non-Negotiable Terms</u>. The terms of this Agreement and the Option are not negotiable, but the Participant may refuse to accept the Option by notifying the Company's [•] Officer in writing within thirty (30) day after the Grant Date set forth in the Grant Notice.

7.9 <u>Acknowledgement by the Participant</u>. In accepting the Option, the Participant hereby acknowledges that:

(a) The Plan is established voluntarily by the Company, it is discretionary in nature, and it may be modified, amended, suspended or terminated by the Company at any time, unless otherwise provided in the Plan.

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(b) The grant of the Option is voluntary and occasional and does not create any contractual or other right to receive future Option grants, or benefits in lieu of Options, even if Options have been granted repeatedly in the past.

(c) All decisions with respect to future Option grants, if any, will be at the sole discretion of the Company.

(d) The Participant is voluntarily participating in the Plan.

(e) The award of Options is an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to the Company or any Qualifying Subsidiary, and which is outside the scope of the Participant's employment contract, if any.

(f) The award of Options is not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments and in no event should be considered as compensation for, or relating in any way to, past services for the Company or any Qualifying Subsidiary.

(g) The award of Options or this Agreement will not be interpreted to form an employment contract with the Company or any Qualifying Subsidiary.

(h) The future value of the Shares issuable upon exercise of the Option is unknown and cannot be predicted with certainty and if the Option vest and is exercised by the Participant, the value of those Shares may increase or decrease.

(i) In consideration of the grant of the Option, no claim or entitlement to compensation or damages shall arise from termination of the Option or diminution in value of the Shares acquired upon exercise of the Option resulting from termination of employment by the Company (for any reason whatsoever and whether or not in breach of applicable labor laws) and the Participant hereby irrevocably releases the Company and its Qualifying Subsidiaries from any such claim that may arise; if, notwithstanding the foregoing, any such claim is found by a court of competent jurisdiction to have arisen, then, by acceptance of the Option, the Participant shall be deemed irrevocably to have waived his or her entitlement to pursue such claim.

(j) In the event of termination of the Participant's employment with the Company (whether or not in breach of local labor laws) or a Qualifying Subsidiary, the Participant's right to receive the Option and vest in the Option under the Plan, if any, will terminate effective as of the date of termination of his or her active employment as determined in the sole discretion of the Committee and will not be extended by any notice of termination of employment or severance period provided to the Participant by contract or practice of the Company or any Qualifying Subsidiary or mandated under local law and the Committee will have the sole discretion to determine the date of termination of the Participant's active employment for purposes of the Option.

(k) Neither the Company nor any Qualifying Subsidiary is providing any tax, legal or financial advice, nor is the Company or any Qualifying Subsidiary making any recommendations regarding the Participant's participation in the Plan, acceptance of the Option, acquisition of Shares upon vesting and exercise of the Option or any sale of such Shares.

(l) The Participant has been advised to consult with his or her own personal tax, legal and financial advisors regarding his or her participation in the Plan before taking any action related to the Plan.

\* \* \* \* \*

## Exhibit 10.21

**Exhibit 10.21**

**[PORTIONS HEREIN IDENTIFIED BY [\*\*\*] HAVE BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE THE EXCLUDED INFORMATION IS BOTH (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED.]**

**<u>PATENT LICENSE AGREEMENT</u>**

This Patent License Agreement ("Agreement") is entered into on December 1st, 2023 ("the Effective Date") by and between Koninklijke Philips N.V., having its registered office at High Tech Campus 52, Eindhoven, The Netherlands ("Philips") and Imricor Medical Systems Inc., having its registered office at 400 Gateway Boulevard, Burnsville, MN 55337-2559, U.S.A. ("Licensee").

(Philips and Licensee hereinafter also referred to individually as "Party" and collectively as "Parties").

WHEREAS, Licensee and Philips entered into a Technology License Agreement on January 27, 2012, and agreed on first, second and third amendments to said Technology License Agreement with effective dates of October 31, 2014, December 1, 2015 and December 8, 2017, respectively, (hereinafter : "Previous Agreement");

WHEREAS the Previous Agreement covered scope products within the field of cardiovascular catheter interventions, renal denervation applications and myocardial biopsy applications, but excluded interstitial applications and oncological applications other than myocardial biopsy applications for oncology;

WHEREAS the Previous Agreement expired on July 1st, 2023.

WHEREAS the Patents (as defined below) with Philips references [\*\*\*], [\*\*\*] and [\*\*\*] that were licensed under the Previous Agreement will not be licensed under this Agreement (the "**Unlicensed Patents**");

WHEREAS the Patents with Philips reference [\*\*\*] that were not licensed under the Previous Agreement will be licensed under this Agreement;

NOW, THEREFORE, in consideration of the mutual obligations and covenants hereinafter set forth, the Parties have agreed as follows:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **Definitions** 

The following capitalised terms shall have the meanings ascribed thereto below:

"**Affiliate**" means any legal entity, which is directly or indirectly: (i) owned or controlled by Philips or Licensee, (ii) owning or controlling Philips or Licensee, or (iii) owned or controlled by the legal entity owning or controlling Philips or Licensee, but any such legal entity shall only be considered an Affiliate for as long as such ownership or control exists. For the purpose of this definition, a legal entity shall be deemed to own or control another legal entity if more than 50% (fifty per cent) of the voting stock of the latter legal entity, ordinarily entitled to vote in the election of directors (or, if there is no such stock, more than 50% (fifty per cent) of the ownership of or control in the latter legal entity) is held by the owning or controlling legal entity.

"**Change of Control**" shall mean the occurrence of any of the following events: (a) any consolidation or merger of a Party with or into any other entity in which the holders of such Party's outstanding shares immediately before such consolidation or merger do not, but immediately after such consolidation or merger do, retain stock representing a majority of the voting power of the surviving entity or stock representing a majority of the voting power of an entity that wholly owns, directly or indirectly, the surviving entity; (b) the sale, transfer or assignment of securities of a Party representing a majority of the voting power of all of such Party's outstanding voting securities to an acquiring party or group; or (c) the sale of all or substantially all of a Party's assets relating to the subject matter of this Agreement.

"**Field of Use**" shall mean the field of cardiovascular catheter interventions, renal denervation applications, and myocardial biopsy applications, including myocardial biopsy applications for oncology. The Field of Use excludes oncological applications and interstitial applications.

"**Licensed Patents**" means the Patents listed in Annex A, as well as any divisionals, re-issues, extensions, renewals, re-examinations, continuations and continuations-in-part of any of the foregoing.

"**Sale**" shall mean the sale, lease or other disposal on an arm's length basis, and Sell, Sold and other cognate expressions shall be construed accordingly.

"**Scope Products**" means any Licensee branded catheters, sheaths and related interventional devices, that are (i) Sold in any of the countries where at least one Licensed Patent is active, or (ii) manufactured in any of the countries where there is at least one Licensed Patent active and subsequently Sold elsewhere, implementing (as described in the Licensed Patents) the:

- "*Connection lead for an electrical accessory device of an MRI system*" technology; and/or

- "*PCB based RF transmission line*" technology; and/or

- "*Cooled tip MR ablation catheter*" technology,

but not implementing (as described in the Unlicensed Patents) the:

- "*Wide band low loss safe transmission line*" technology; and/or

- "*Matching technique for low profile safe transmission lines in MR-safe devices*" technology; and/or

- "*Robust tip tracking of catheters with safe transformer line*" technology.

"**Patents**" means patents, patent applications, and utility models.

"**Term**" means the period specified in Clause 7.1.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **Grant of rights** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 For the Term of this Agreement and subject to its provisions, Philips hereby grants to Licensee and its Affiliates, a non-exclusive, non-transferable license under the Licensed Patents, without the right to grant sub-licenses, to manufacture Scope Products and to Sell or otherwise dispose of Scope Products manufactured by Licensee or any of its Affiliates or its or their third party manufacturers (subject to clause 2.3) on a world-wide basis within the Field of Use, including, without limitation, to Sell or otherwise dispose of Scope Products through one or more third parties who act as distributors for Licensee.

Subject to clause 2.3 of this Agreement, the rights and licenses granted under this Agreement do not extend to products manufactured by third parties.

With respect to any legal entity acquired by Licensee, the license granted pursuant to the preceding paragraph shall not become effective unless and until Licensee or such new Affiliate has concluded a binding arrangement with Philips to compensate Philips for the unauthorised use (if any) of the Licensed Patents in the manufacture, Sale or other disposal of Scope Products by such entity before it became an Affiliate of Licensee.

Further, in the event that any of Licensee's Affiliate ceases to be an Affiliate, the license in respect of such Affiliate shall automatically terminate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 Licensee shall promptly notify Philips if it intends to enter into any agreement to integrate Licensed Products with magnetic resonance imaging systems of any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 The rights granted to Licensee pursuant to Clause 2.1 include the right for Licensee to have components of Scope Products made by a third-party manufacturer solely for the account of Licensee, incorporation of the component into a Scope Product and the subsequent sale by Licensee, its Affiliates or its or their third-party distributors of the Scope Product, provided that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Licensee notifies Philips in writing of each such subcontracting arrangement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Philips has given its prior written approval to Licensee, such approval not to be unreasonably withheld, conditioned or delayed; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Licensee properly identifies each such third-party manufacturer, the specific manufacturing facility(ies) and location(s); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Licensee warrants that it has entered into a legally binding arrangement with such third-party manufacturer whereby such third party manufacturer is bound to the same confidentiality obligations as well as the undertaking not to 'reverse engineer', as set forth in this Agreement.

Licensee acknowledges and accepts that any material breach by the third-party manufacturer of these obligations shall be considered a material breach by Licensee under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **Royalties, Reports and Payments** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 In consideration of the license under Clause 2, Licensee shall pay to Philips a non-refundable, non-recoupable amount of [\*\*\*] before February 1st, 2024 and a non-refundable, non-recoupable amount of [\*\*\*] before December 31st, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 All payments under this Agreement shall be paid by wire transfer in Euros to Philips' Euro Bank account with [\*\*\*], as follows:

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| |
|:---|
| Bank Account No.: |
| In the name of: |
| With bank: |
| SWIFTCODE: |
| IBAN Code: |
| Sort code: |
| Reference: |

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 Any payment under this Agreement which is not made on the due dates specified herein, shall accrue interest at the rate of [\*\*\*] per month (or part thereof) or the maximum amount permitted by law, whichever is lower, until such time that the principal amount outstanding, together with all interest accrued thereon will have been paid in full, irrespective of whether such full payment occurs during the Term of this Agreement or thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4 Any costs, taxes and other similar levies arising from or in connection with the conclusion of this Agreement shall be borne by Licensee. In the event that the government of any country imposes any taxes on payments made by Licensee to Philips hereunder and requires Licensee to withhold such tax from such payments, Licensee may deduct such tax from such payments. In such event, Licensee shall promptly provide Philips with tax receipts issued by the relevant tax authorities, to enable Philips to support a claim for credit against income taxes which may be payable by Philips or its Affiliates and to enable Philips to document, if necessary, its compliance with tax obligations in the relevant jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.5 In the event that Licensee or any third party brings a claim of invalidity or non-infringement in relation to any of the Licensed Patents and if following any such claim, a court of competent jurisdiction determines that any Licensed Patent challenged by Licensee or a third party is either invalid or not infringed by Licensee, Licensee shall have no right to reclaim any royalties or lumpsum paid before or during the period of such challenge.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **Confidentiality** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 Licensee shall keep the contents of this Agreement confidential and shall not disclose these to any third party, other than as required by applicable law. In addition, Licensee may make references to this Agreement in filings made by Licensee with the Australian Securities Exchange and the Australian Securities and Investments Commission but only to the extent that such is required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 Philips shall, during the Term and for a period of 5 years thereafter, not disclose to any third party any confidential information obtained from Licensee in connection with Clause 3, save where such disclosure is required in connection with the enforcement of Philips' rights under this Agreement or at law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **No Assignment** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 Licensee may not assign any of its rights or obligations under this Agreement to any third party. Philips may freely assign its rights and obligations under this Agreement to any third party in connection with the assignment of the Licensed Patents to a third party, subject to such third-party assignee accepting, by means of a written instrument, to be bound by the provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **Indemnification** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 Philips and its Affiliates shall be fully indemnified and held harmless by Licensee and its Affiliates from and against any and all third-party claims in connection with Scope Products manufactured or sold by Licensee or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **Term and Termination** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 This Agreement shall enter into force on the Effective Date and shall remain in force until January 1st, 2031, unless terminated earlier in accordance with the provisions of this Clause 7 ("Term").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 Philips may terminate this Agreement at any time by means of a written notice to Licensee if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Licensee fails to perform any obligation under this Agreement and such failure is not remedied within 30 days after receipt of a notice specifying the nature of such failure and requiring it to be remedied; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a creditor or other claimant takes possession of, or a receiver, administrator or similar officer is appointed over Licensee's assets, or if Licensee makes any voluntary arrangement with its creditors or becomes subject to any bankruptcy proceedings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Licensee or any of its Affiliates brings a claim of infringement under any of its patents against Philips or any of Philips' Affiliates and refuses to license such patents to Philips on reasonable conditions; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) a Change of Control occurs in relation to Licensee.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 Upon the termination of this Agreement by Philips for any reason in accordance with its provisions, Licensee shall immediately cease use of the Licensed Patents, whether in the manufacture and sale of Scope Products, or otherwise. Further, upon such termination, any and all amounts outstanding hereunder shall become immediately due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **Miscellaneous** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 Any notice required under this Agreement to be sent by either Party shall be given in writing by means of registered post or electronic mail directed:

<u>in respect of Licensee, to:</u>

lmricor Medical Systems, Inc.<br> 400 Gateway Boulevard

Burnsville, MN 55337-2559<br> ATTN: Mr. Steven R. Wedan<br> Fax no.: +1 952 818 8401

<u>in respect of Philips, to:</u>

Koninklijke Philips N.V.

c/o Philips Intellectual Property & Standards<br> High Tech Campus 52

5656 AG Eindhoven, The Netherlands<br> E-mail:

Attention:

or such other address as may have been previously specified in writing by either Party to the other.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 This Agreement sets forth the entire understanding and agreement between the Parties as to the subject matter hereof and supersedes and replaces all prior arrangements, discussions and understandings between the Parties relating thereto. No variation of this Agreement shall be binding upon either Party unless made by means of a single written instrument, signed by a duly authorised representative of each Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 Nothing contained in this Agreement shall be construed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as imposing on either Party any obligation to instigate any suit or action for infringement of any of the patents licensed hereunder or to defend any suit or action brought by a third party which challenges or relates to the validity of any such patents. Licensee shall have no right to instigate any such suit or action for infringement of any of the patents licensed by Philips hereunder, nor the right to defend any such suit or action which challenges or relates to the validity of any such patent licensed by Philips hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as imposing any obligation to file any patent application, to secure any patent or to maintain any patent in force;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) as a warranty or representation by Philips as to the validity or scope of any patent rights licensed hereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) as conferring any license or right to use any trademark owned by Philips or to copy or imitate the appearance or design of any product of Philips or any of its Affiliates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) as granting, by implication, estoppel or otherwise, any license under any intellectual property right other than explicitly granted pursuant to Clause 2;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) as conferring upon Licensee any license to manufacture or sell any product or device other than a Scope Product, solely within the Field of Use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 It is acknowledged by Licensee that third parties may own intellectual property rights in the field of Scope Products. Philips makes no warranty whatsoever that the manufacture, use or sale of Scope Products, does not infringe or will not cause infringement of any intellectual property rights other than the Licensed Patents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 This Agreement shall be governed by and construed in accordance with the laws of The Netherlands. Any dispute between the Parties in connection with this Agreement (including any question regarding its existence, validity or termination) shall be submitted to the District Court of Amsterdam, The Netherlands, provided always that, in case Philips is the plaintiff, Philips may, in its sole discretion, submit such dispute to the competent courts in the venue of Licensee's registered office.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **Execution; Delivery** 

This Agreement may be executed by the Parties by original or electronic signatures on any number of separate counterparts and may be delivered via physical delivery or electronic transmission (e.g. with scanned signatures in pdf format). All such signatures shall be deemed effective and such counterparts taken together shall be deemed to constitute one and the same instrument.

AS WITNESS, the Parties have executed this Agreement to be effective as of the Effective Date.

---

| | |
|:---|:---|
| Koninklijke Philips N.V. | Imricor Medical Systems Inc. |
| */s/ Stephanie van Wermeskerken* | */s/ Steve Wedan* |
| Name: Stephanie van Wermeskerken | Name: Steve Wedan |
| Title: Head of HealthTech IP | Title: Chief Executive Officer |

---

------

**Annex A**<br>**Licensed Patents**

## Exhibit 10.22

**Exhibit 10.22**

**FINAL AGREEMENT NOV 6 2023**

**[PORTIONS HEREIN IDENTIFIED BY [\*\*\*] HAVE BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE THE EXCLUDED INFORMATION IS BOTH (I) NOT MATERIAL AND (II) WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED.]**

**INTELLECTUAL PROPERTY LICENSE AGREEMENT**

**THIS INTELLECTUAL PROPERTY LICENSE AGREEMENT** (this "<u>Agreement</u>") is entered into as of November 13, 2023 (the "Effective Date"), by and between Imricor Medical Systems, Inc., a Delaware corporation ("<u>Licensee</u>"), and Livetec Ingenieurbuero GmbH, a limited liability company formed under the laws of Germany ("<u>Licensor</u>").

**RECITAL**

**WHEREAS**, Licensor is a technology company in the field of healthcare which is engaged in research, development and commercialization of healthcare products and has control of relevant intellectual property; Licensor has developed and successfully markets a system for the ablation of tachyarrhythmias, the HAT-500 System, under the existing MDD approval.

**WHEREAS,** Licensee is a medical device company in the field of MRI-compatible medical devices; Licensee wishes to become legal manufacturer, manufacture, produce, test, sell and maintain the system for ablation of tachyarrhythmias (the HAT-500 System) under its own name, responsibility, and according to CE (MDR) and FDA (IDE, PMA). Therefore, Licensee wishes to be enabled to (i) modify and further develop the system for ablation of tachyarrhythmias independently of Licensor, (ii) carry out a "re-engineering" of the system so that Licensee can create its own design history file, (iii) independently create technical documentation for IDE, MDR and PMA and independently and autonomously apply for CE (MDR), FDA (IDE, PMA) and other regulatory approvals.

**WHEREAS**, this Agreement sets forth the terms and conditions upon which Licensor will (a) license to Licensee, certain relevant intellectual property related to HAT-500 RF ablation system, including intellectual property related to the HAT-500 Generator, the HAT-500 Pump the HAT-500 Remote, certain accessories, and certain software (collectively, the "<u>HAT-500 System</u>"); (b) allow Licensee to become a manufacturer of the HAT-500 System; and (c) provide certain support to Licensee with respect to the same.

**AGREEMENT**

**NOW, THEREFORE**, in consideration of the covenants and agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound hereby, agree as follows:

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**Article I.**<br> **DEFINITIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 "<u>Intellectual Property</u>" means any and all intellectual property rights in the world arising under the laws of any jurisdiction with respect to design, data, methods, technique, know-how, trade secrets or other proprietary rights in technical, scientific, manufacturing, regulatory and other information, recorded in any form, and any and all intellectual property rights relating thereto, whether registered or not, including without limitation copyright, software, including firmware and computer software, as well as object and source code, trademarks, service marks, and any goodwill associated therewith, whether registered, registerable or otherwise and including all applications (or rights to apply), renewals and extensions for such rights, and all improvements, developments, modifications, derivative works, or translations in the foregoing before the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 "<u>IP Assets</u>" means all Intellectual Property that is owned or controlled by Licensor related to the HAT-500 System, including (i) Registered IP (as hereafter defined)and (ii) Copyrights including the software specifically developed for use in the HAT-500 System and the related object code and source code, and (iii) related rights including without limitation derivative works, unregistered rights in designs, trade secrets and all other rights in confidential information (including know-how) and (iv) any other Intellectual Property rights, including all applications (and rights to apply) for, and renewals or extensions of, such rights and all similar or equivalent rights or forms of protection which are owned or controlled by the Licensor, and in each case which are used in the HAT-500 System as currently conducted, relate primarily to or subsist in the HAT-500 System in any part of the world (collectively, "<u>Unregistered IP</u>"), and (v) in each case is listed in <u>Schedule 1.2</u>. "). Off-the-shelf-software ("OTS"), open source software and other standard software used in the HAT-500 System are not covered by the IP Assets and are not subject to the license granted hereunder.

**Article II.**<br> **LICENSED IP ASSETS; LICENSE FEE ETC.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>License to IP Assets on Effective Date</u>. On the Effective Date and subject to the terms and conditions contained in this Agreement, Licensor herby grants Licensee a worldwide, non-transferable, and non-exclusive license, without the right to grant sublicenses, to its IP Assets, to the extent reasonably necessary for Licensee to apply for CE (MDR) and FDA (IDE, PMA) approvals for the HAT-500 System. Therefore, this only includes the right to further develop, design, modify, improve, copy, create derivative works, make, have made, manufacture, have manufactured, use, import and export, the IP Assets for this purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>License to IP Assets after Payment of the full License Fee</u>. After payment of the total lump-sum license fee amounting to [\*\*\*] according to <u>Section 2.5</u> and subject to the terms and conditions contained in this Agreement, Licensor herby grants Licensee a perpetual, worldwide, irrevocable, solely transferable subject to Section 10.3, and non-exclusive license, , to its IP Assets, to the extent reasonably necessary for Licensee to further develop, design, modify, improve, copy, create derivative works, make, have made, manufacture, have manufactured, use, import and export, market and have marketed, offer to sell, sell, have sold, distribute and have distributed, support and maintain the HAT-500 System. Licensee may only grant sublicenses to its manufacturers, sales partners or any other third parties and only as required within its activities as licensed herein.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Owner of IP Assets</u>. Licensee hereby acknowledges that, as between Licensor and Licensee, Licensor is the sole and exclusive owner or licensee of all right, title, and interest in and to the IP Assets. Except as set forth herein, Licensee shall not have any right, title, or interest in the IP Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 <u>Status of IP Assets and Developments or Improvements of the IP Assets after the Effective Date</u>. For the avoidance of any doubt, the licenses according to <u>Section 2.1</u> and <u>Section 2.2</u> are granted at the technical level and scope of the IP Assets on the Effective Date. Licensor hereby assigns to Licensee, all right, title and interest (including all such Intellectual Property rights) in and to all improvements, developments, modifications, derivative works, or translations, as well as any registrations and pending applications in the foregoing, in and to the IP Assets (collectively "<u>Improvements</u>") as of the Effective Date, and Licensee accepts this assignment for its own use and benefit, and for the use and benefit of its successors, assigns, or other legal representatives. Licensee shall have the sole right (but not obligation) to file, prosecute, and maintain, at Licensee's sole cost and expense, all Intellectual Property in and to the Improvements. Licensee shall solely own all Improvements developed after the Effective Date by Liscensee. For the avoidance of any doubt, Licensor shall solely own all Improvements developed after the Effective Date by Licensor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>License fee.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>License fee</u>. The total consideration for the IP Assets is a lump-sum license fee amounting to [\*\*\*] net (the "<u>License Fee</u>"), to be paid and delivered by Licensee to Licensor in accordance with the following schedule, but subject to the terms of Section 2.12 hereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) [\*\*\*] ([\*\*\*] minus [\*\*\*]) on the Effective Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) [\*\*\*] on November 30, 2023;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) [\*\*\*] on December 31, 2023;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) [\*\*\*] on January 31, 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) [\*\*\*] on February 28, 2024;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) [\*\*\*] onJune 30, 2024; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) [\*\*\*] on December 31, 2024.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payment</u>. Licensee shall pay the License Fee to Licensor by wire transfer of immediately available funds, to an account or accounts designated by Licensor in writing to Licensee on or prior to each date set forth in <u>Section</u><u> </u><u>2.5(a)</u> above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.6 <u>No Assumption of Liabilities</u>. Licensee shall in no event assume or be responsible for any liabilities or obligations of Licensor of any kind, whether known or unknown, contingent, matured or otherwise, arising out of or relating to Licensor's ownership or operation of the IP Assets before the Effective Date, except for those outlined in <u>Sections 2.5 through 2.11</u> of this Agreement. Licensor shall in no event assume or be responsible for any liabilities or obligations arising out of or relating to Licensee's entitlement to or operation of the IP Assets on or after the Effective Date, except for those outlined in <u>Sections 2.4 through 2.10</u> of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.7 <u>Transfer Taxes</u>. Each Party shall bear and pay their own costs regarding transfer, documentary, sales, use, stamp, registration, value added, withholding and other such taxes and fees (including any penalties and interest), if any, incurred in connection with this Agreement and the documents to be delivered hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.8 <u>Enforcement; Defense</u>. Licensor and Licensee shall promptly give notice in writing to each other of any known actual or potential third party infringement of the IP Assets. If Licensor decides to pursue an action for third party infringement of the IP Assets, Licensor agrees to enter into negotiations with Licensee regarding how to enforce the allegedly infringed IP, including such considerations as shared legal costs and recovered damages. Any non-exclusive license that Licensor grants to an actual or potential infringer, or as part of a settlement of allegations of infringement, must be for terms no more favorable than the terms granted to Licensee under this Agreement. For the avoidance of any doubt, Licensor is not obligated to pursue an action for third party infringement of the IP Assets. In the event a third party infringes the Licensor's IP Assets and Licensor fails to commence formal legal action seeking to enjoin said infringement within sixty (60) days of knowledge of said infringement, then Licensee may at its option elect (but is not obligated) toprosecute such infringement under Licensee's sole control at Licensee's expense (if Licensor chooses not to intervene voluntarily, but Licensor is a necessary party to the action, then Licensee may join Licensor in the litigation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.9 <u>No Affect on Existing HAT-500 System</u>. For clarity, the terms and conditions of this Agreement and the transactions contemplated hereby will not affect the existing current HAT-500 System of Licensor which is subject to the MDD (EU Medical Device Directive) rules and requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.10 <u>Certain Obligations of Licensee</u>. For the avoidance of doubt, following the Effective Date Licensee shall be solely responsible for the CE (MDR) and FDA (IDE, PMA) process with respect to the HAT-500 System, including CE (MDR) and FDA (IDE, PMA) approval, manufacturing and sale of the same. The parties are aware that the CE (MDR) and FDA (IDE, PMA) approval process is associated with some risks. However, the payment of the license fee according to <u>Section 2.5(a)</u> shall be made in full on the dates set forth in <u>Section 2.5(a)</u> irrespective or whether Licensee has successfully obtained CE (MDR) and FDA (IDE, PMA) approvals at that time. For the avoidance of doubt, the Licensee has the right, but not the obligation, to apply for and obtain other regulatory approvals with respect to the HAT-500 Sytem from any countries or jurisdictions of its choice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.11 <u>OTS, Open Source and Other Standard Software</u>. Licensee is obligated to license the required third party licenses for OTS, open source and other standard software which are used in the HAT-500 System as currently conducted in any part of the world that are listed in <u>Schedule 2.12</u> and which are not included in the IP Assets.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.12 <u>Freedom to Operate Analysis</u>. Following the execution of this Agreement, the parties agree that Licensee shall engage an intellectual property counsel to perform a freedom to operate analysis relating to exploitation of the IP Assets (the "<u>FTO</u>") in the United States of America.<br> Licensor will provide reasonable assistance to Licensee with respect to the FTO and Licensor shall pay Licensee [\*\*\*] towards the cost of the FTO, which amount will be deducted from the License Fee payable by Licensee to Licensor on the Effective Date (as shown in Section 2.5(a)(i) above).<br> For the avoidance of doubt, Licensee shall be obligated to pay the Licence Fees according to Section 2.5(a) until Licensee (and Licensor) receives the completed FTO. The FTO must be completed by February 29, 2024.<br> If the FTO is not acceptable to Licensee in its sole discretion, this Agreement shall terminate immediately upon the delivery of notice of termination by Licensee to Licensor and Licensor shall refund to Licensee License Fees paid to Licensor by Licensee prior to such date of termination according to Section 2.5 (a) (ii) – (vii). For the avoidance of doubt, Licensee shall not be entitled to use the IP Assets according to Section 2.1 and Section 2.2 if Licensor refunds the License Fee.

**Article III.**<br> **EXECUTION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Effective Date</u>. The execution of this Agreement will be on the Effective Date, through the remote exchange of electronic copies of executed documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Licensor Deliverables</u>. After the first installment of the License Fee pursuant to <u>Section 2.3(a)(i)</u>, the Licensor will deliver or cause to be delivered the IP Assets to Licensee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.3 <u>Licensee Deliverables</u>. At the Effective Date, Licensee will deliver or cause to be delivered the first installment of the License Fee pursuant to <u>Section 2.3(a)(i)</u> to Licensor.

**Article IV.**<br> **DECLARATIONS OF LICENSOR**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Organization; Authority; Enforceability</u>. Licensor is a limited liability corporation, duly incorporated, validly existing and in good standing under the laws of Germany. Licensor has all necessary corporate power and authority to execute and deliver this Agreement. Licensor has taken all action required by law, its governing documents and otherwise to authorize Licensor's execution, delivery and performance of this Agreement. Licensor has duly and validly executed and delivered this Agreement and, assuming the due authorization, execution and delivery of this Agreement by Licensor, this Agreement constitutes the legal and valid binding obligation of Licensor enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to creditors' rights generally and to general principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 <u>No Conflicts; No Consents</u>. To the best knowledge of Licensor, no prior notice to, or consent or approval from, a German court or other German governmental authority is required in connection with Licensor's execution and performance of this Agreement and the other documents contemplated hereunder and to complete the transactions contemplated by this Agreement. The execution and performance of this Agreement and the other documents contemplated hereunder and to complete the transactions contemplated by this Agreement by Licensor will not violate German law.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Intellectual Property</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>IP Assets</u>. <u>Schedule 1.2</u> sets forth an accurate and complete list of (i) all registered Marks, pending applications for registration of Marks included in the IP Assets (collectively, the "<u>Registered IP</u>") and (ii) all Unregistered IP (such as Know-how and copyrights including software programs) included in the IP Assets. For the avoidance of any doubt, OTS, open source software and other standard software used in the HAT-500 System are not covered by the IP Assets. Therefore, this Section 4.3 does not apply to OTS, open source software and other standard software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Title</u>. To Licensor's best knowledge, Licensor owns all and has adequate, valid and enforceable, right, title and interest including all intellectual property rights, in and to the IP Assets, free and clear of all encumbrances, or is the recipient of a valid license thereto. All IP Assets are valid, subsisting and in full force and effect. Licensee acknowledges that certain parts of the licensed IP Assets, in particular the trademarks licensed hereunder and some of the licensed know-how, is property of Osypka AG, Rheinfelden, Germany. Licensor and Osypka AG have entered into a valid license agreement prior to this Agreement, in which Osypka AG expressly agrees to the licensing and sublicensing of its trademarks and know-how, and all related intellectual property, under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To Licensor's best knowledge, Licensor's prior and current use of the IP Assets has not and does not infringe, violate, dilute or misappropriate the intellectual property rights of any person or entity and there are no claims pending or threatened by any person or entity with respect to the ownership, validity, enforceability, effectiveness or use of the IP Assets. To Licensor's best knowledge, no person or entity is infringing, misappropriating, diluting or otherwise violating any of the IP Assets, and Licensor has not made or asserted any claim, demand or notice against any person or entity alleging any such infringement, misappropriation, dilution or other violation. Licensor agrees to not take any action that would, or fail to take any action the failure of which would, cause directly any of its Intellectual Property in the IP Assets to enter the public domain .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) For the avoidance of any doubt, Licensor does not warrant or guarantee (i) the commercial success of the HAT-500 System, or (ii) that the CE (MDR) and FDA (IDE, PMA) approval will be granted for the HAT-500 System. Moreover, with respect to their scope and technical level, the IP Assets are licensed as of the Effective Date Licensor shall in particular not be liable for the technical feasibility and usability of the IP Assets.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Software</u>. To Licensor's best knowledge, Licensor owns or has the right to use, disclose and license, all software, software systems and databases and all other information systems included in the IP Assets. None of the IP Assets contain any computer code or other mechanism of any kind designed to disrupt, disable or harm in any manner the operation of any software or hardware or other business processes or to misuse, gain unauthorized access to or misappropriate any business or personal information, including worms, bombs, backdoors, clocks, timers or other disabling device code or designs or routines that cause software or information to be erased, inoperable or otherwise incapable of being used, either automatically, with the passage of time or upon command.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.4 <u>Litigation</u>. To Licensor's best knowledge, there is no claim, action, arbitration, inquiry, investigation, suit or proceeding ("<u>Action</u>") pending against Licensor. There are no judgments, decrees, injunctions or orders of any court, governmental body, department, commission, agency, instrumentality or arbitrator against Licensor affecting the IP Assets. Licensee acknowledges that Licensor has not conducted any research regarding third party IP or Licensor's freedom to operate with respect to the IP Assets.

**Article V.**<br> **DECLARATIONS OF LICENSEE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Organization; Authority; Enforceability</u>. Licensee is a corporation, duly incorporated, validly existing and in good standing under the laws of the State of Delaware. Licensee has all necessary corporate power and authority to execute and deliver this Agreement and to complete the transactions contemplated by this Agreement. Licensee has taken all action required by law, its governing documents and otherwise to authorize Licensee's execution, delivery and performance of this Agreement. Licensee has duly and validly executed and delivered this Agreement and, assuming the due authorization, execution and delivery of this Agreement by Licensor, this Agreement constitutes the legal and valid binding obligation of Licensee enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to creditors' rights generally and to general principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>No Conflicts; No Consents</u>. No notice to, or consent or approval from, any court or other governmental authority is required in connection with the Licensee's execution and performance of this Agreement. The execution and performance of this Agreement by the Licensee will not violate any applicable law, Licensee's organizational documents or any agreements to which the Licensee is bound. No authorization, approval, consent of, or filing with any governmental body, department, bureau, agency, authority is required for the consummation by Licensee of the transactions contemplated by this Agreement.

**Article VI.**<br> **COVENANTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Licensee Commitment to Purchase Systems; Licensor Training</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Following the Effective Date, Licensee shall order and purchase from Licensor six (6) HAT-500 Systems at a purchase price of [\*\*\*] per system. Licensee hereby further agrees that it will prepay to Licensor, at the time of order, 30% of the total purchase price for each order of said HAT-500 Systems.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In connection with Licensee's purchase of the HAT-500 Systems pursuant to <u>Section</u><u> </u><u>6.1(a)</u> above, Licensor agrees to invite Licensee's staff to Licensor's manufacturing facilities to observe the manufacture of the HAT-500 Systems, during which time Licensor shall also provide education and training to Licensee's staff with respect to such manufacturing process, according to <u>Schedule 6.1(b)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Licensor Technical Support</u>. Following the Effective Date, Licensor hereby agrees to provide Licensee with the technical support services listed on <u>Schedule</u><u> </u><u>6.1(b)</u> until 31 December 2024.

**Article VII.**<br> **INDEMNIFICATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Limitation Period</u>. Subject to the limitations and other provisions of this Agreement, any claims to remedies or indemnification of Licensee shall become statute-barred at the date that is twelve (12) months from the Effective Date.

<u>Indemnification by Licensor</u>. Subject to the other terms and conditions of this <u>Section</u><u> </u><u>7</u> and to the extent permitted by applicable law, Licensor shall not be liable to Licensee for any indirect, punitive, consequential, incidental or special damages or loss of profits, whether based on a contract or tort, or arising under applicable law or otherwise, except in case of willful misconduct. For the avoidance of any doubt, and to the extent permitted by applicable law, Licensor shall in particular not be liable for (i) CE (MDR) and FDA (IDE, PMA) approval, (ii) the commercial success of the HAT-500 System, and (iii) any infringement of third party Intellectual Property by the IP Assets, if the third party Intellectual Property is published or becomes otherwise known to Licensor or Licensee after the Effective Date.

<u>Indemnification by Licensee</u>. Subject to the other terms and conditions of this <u>Section</u><u> </u><u>7</u> and<u> </u>to the extent permitted by applicable law, Licensee shall defend, indemnify and hold harmless Licensor its managers, directors, and employees ("<u>Licensor Indemnified Parties</u>") from and against any and all Losses, incurred or sustained by, or imposed upon, Licensor based upon, arising out of, with respect to or by reason of any material breach or material non-fulfillment of any covenant, agreement or obligation to be performed by Licensee pursuant to this Agreement or any document to be delivered hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Indemnification Procedures</u>. In case of any claim that is subject to indemnification under this Agreement, the party that is indemnified ("Indemnitee") shall provide the indemnifying party ("Indemnitor") reasonably prompt notice of the relevant claim. Indemnitor shall defend and/or settle, at its own expense, any demand, action, or suit on any claim subject to indemnification under this Agreement. Each party shall cooperate in good faith with the other to facilitate the defense of any such claim and shall tender the defense and settlement of any action or proceeding covered by this <u>Section 7</u> to the Indemnitor upon request. Claims may be settled without the consent of the Indemnitee, unless the settlement includes an admission of wrongdoing, fault or liability.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Mitigation</u>. Licensee and Licensor Indemnified Party shall use commercially reasonable efforts to mitigate all Losses upon becoming aware of the circumstances from which any such Losses arise. The amount of any Losses for which indemnification is provided under this <u>Section</u><u> </u><u>7</u> will be reduced to take into account: (a) any insurance, indemnification, contribution or reimbursement proceeds actually realized and paid (less recovery costs incurred) by and to the Licensee or Licensor Indemnified Party in respect of such Losses under applicable insurance policies (other than self-insurance) or other arrangements, which such Licensee or Licensor Indemnified Party shall use commercially reasonable efforts to pursue; and (b) any tax benefit actually realized in connection with such Losses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Indemnification Payments and Limitations</u>. Notwithstanding anything to the contrary set forth herein, the maximum amount of any and all Losses for which either party will be required to provide indemnification for hereunder with respect to its indemnification obligations under this <u>Section</u><u> </u><u>7</u> shall not exceed, in the aggregate, one hundred percent (100%) of the total value of the License Fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Tax Treatment of Indemnification Payments</u>. All indemnification payments made by Licensor under this Agreement shall be treated by the parties as an adjustment to the License Fee for tax purposes, unless otherwise required by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <u>Exclusive Remedies</u>. Licensee acknowledges and agrees that its sole and exclusive remedy with respect to any and all claims (other than claims arising from fraud on the part of a party hereto in connection with the transactions contemplated by this Agreement) for any breach of any agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement, shall be pursuant to the indemnification provisions set forth in this <u>Section 7</u>. In furtherance of the foregoing, each party hereby waives, to the fullest extent permitted under applicable law, any and all rights, claims and causes of action for any breach of any agreement or obligation set forth herein or otherwise relating to the subject matter of this Agreement it may have against the other parties hereto and their affiliates and each of their respective representatives arising under or based upon any applicable law, except pursuant to the indemnification provisions set forth in this <u>Section</u><u> </u><u>7</u>. Nothing in this <u>Section 7</u> shall limit or exclude each Party's liability for (i) death or personal injury; (ii) any fraud or any sort of liability that, by law, cannot be limited or excluded.

**Article VIII.**

**CONFIDENTIALITY**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Confidentiality.</u> Each Party ("Receiving Party") may have access and exposure to, or may develop or may have developed, confidential, secret and/or proprietary information that pertains to the other Party ("Originating Party"), or that pertains to any of the Originating Party's affiliates, employees, clients or customers, consultants, business associates, suppliers, or licensors ("Confidential Information").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Exclusions. Confidential Information does not include information that: (i) passes into the public domain other than through the Receiving Party's acts or omissions; or (ii) is obtained from a third party who did not acquire the information under an obligation of confidentiality.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Protection of Confidential Information. Each Party will: (i) not use, disseminate, or in any way disclose the Confidential Information of the Originating Party at any time except as required in the course of its involvement in, and in furtherance of the interests of the Originating Party; (ii) maintain the Confidential Information of the Originating Party with the same degree of care that it treats its own confidential information; and (iii) limit disclosure of the Confidential Information of the Originating Party on a need to know basis to employees and employees of subcontractors who have signed an agreement of nondisclosure and for whom permission has been granted by the Originating Party. The confidentiality obligations shall not apply to the extent disclosure is required by applicable law, regulation, or court order; so long as the Receiving Party gives the Originating Party prompt written notice and sufficient opportunity to object to the disclosure, or to request confidential treatment of the disclosure. A party may make Confidential Information available to those authorities responsible for the CE (MDR) and FDA (IDE, PMA) approval, provided that the authorities are obligated to maintain confidentiality, and require the information for the CE (MDR) and FDA (IDE, PMA) approval. The confidentiality obligations under this Agreement will continue for a period of ten (10) years after termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Return of Information. Upon request or termination of this Agreement, the Receiving Party will immediately deliver to the Originating Party all copies of any and all materials and writings received from, created for, or belonging to the other Party including, but not limited to, those which relate to or contain Confidential Information, all tangible media of expression in the Receiving Party's possession which incorporate Confidential Information or otherwise relate to the licenses as provided above, and written certification of compliance with the obligations under this <u>Article VIII</u>. Confidential Information that must be retained by law as well as necessary back-up copies forming part of the centralised data back-up insofar as they cannot reasonably be deleted, are exempt from this obligation, as is one archive copy. The confidentiallity obligation provided herin shall continue to apply to all retained Information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No Violation of Rights of Third Parties. Each Party agrees that it does not and will not breach any agreement to keep in confidence proprietary information, knowledge, or data acquired from third parties prior to the Effective Date, and it will not disclose any confidential or proprietary information or material belonging to third parties. Each Party agrees not to enter into any agreement, whether written or oral, in conflict with the provisions of this Agreement.

**Article IX.**

**TERM AND TERMINATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Term</u>. Unless terminated according to Section <u>2.12 above</u> or <u>Section 9.2</u> below, this Agreement shall remain in effect in perpetuity.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Termination.</u> In the event that either Party ("<u>Breaching Party</u>") commits a material breach or default of any of its obligations hereunder the other Party hereto ("<u>Non-Breaching Party</u>") may give the Breaching Party written notice of such material breach or default, and may request that such material breach or default be cured as soon as reasonably practicable. In the event that the Breaching Party fails to cure such breach or default within sixty (60) calendar days after the date of the Non-Breaching Party's notice thereof, the Non-Breaching Party may terminate this Agreement by giving written notice of termination to the Breaching Party. In the event the Breaching Party will be unable to cure the breach or if such cure is impossible, this Agreement may be terminated by the Non-Breaching Party with immediate effect.

**Article X.**<br> **MISCELLANEOUS PROVISIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <u>Entire Agreement; Amendment</u>. This Agreement embodies all of the understandings, representations, warranties and agreements of the parties hereto with respect to the subject matter hereof, and all prior understandings, representations, warranties and agreements (whether oral or written) with respect to such subject matter are replaced and superseded by this Agreement. This Agreement may not be amended or modified except by a written instrument executed by both parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <u>Change of Control.</u> Change of Control of a party shall mean any of the following: (i) a change in the ownership of the party stemming from the purchase of more than 50 percent of the voting shares or the rights to acquire such shares; (ii) any direct or indirect sale or transfer of substantially all of the assets of the party; (iii) a plan of liquidation or an executed agreement for the sale on liquidation of the party; or (iv) the board or empowered managing committee of the party declares that a change of control has occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <u>Assignment; Survival</u>. Neither party shall assign all or any portion of this Agreement without the other party's written consent, which consent shall not be unreasonably withheld; provided, however, that either party may, without such consent, assign this Agreement, in whole or in part, in connection with the Change of Control of that party. This Agreement shall bind and inure to the benefit of the successors and permitted assigns of the respective parties. Any assignment or transfer not in accordance with this Agreement shall be void. In order that the parties may fully exercise their rights and perform their obligations arising under the Agreement, any provisions of the Agreement that are required to ensure such exercise or performance (including any obligation accrued as of the termination date) shall survive termination of the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 <u>Expenses</u>. Each of the parties hereto will bear its own costs, fees and expenses in connection with the negotiation, preparation, execution, delivery and performance of this Agreement and the consummation of the transactions contemplated hereby, including fees, commissions and expenses payable to consultants, brokers, attorneys, accountants and other professionals, whether or not the transactions contemplated herein are consummated. The foregoing shall not affect the legal right, if any, that any party hereto may have to recover expenses from any other party that breaches its obligations hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 <u>Notices</u>. All notices, requests, demands and other communications required or permitted hereunder must be made in writing and will be deemed to have been duly given and effective: (a) on the date of delivery, if delivered personally; (b) on the date of transmission, if sent by electronic mail, return receipt requested; or (c) on the date of requested delivery if sent by a recognized overnight courier:

If to Licensor, to: livetec Ingenieurbuero GmbH

Marie-Curie-Strasse 8

79539 Loerrach, Germany

With a copy to (which shall not constitute notice):

Bender Harrer Krevet Rechtsanwälte Partnerschaft mbB

Humboldtstraße 3

79539 Loeerach, Germany

Attn: Beate Pikolin; Dr. Felix Jehle

Email:

If to Licensee, to: Imricor Medical Systems, Inc.

400 Gateway Blvd.

Burnsville, MN 55337

Attn: Chief Executive Officer

With a copy to (which shall not constitute notice):

Fox Rothschild LLP

33 South 6th Street

Suite 3600

Minneapolis, MN 55402

Attn: Patrice Kloss

Email:

or to such other person or address as a party may furnish to the other party in writing in accordance with this <u>Section</u><u> </u><u>10.5</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 <u>Governing Law</u>. This Agreement shall be governed by and construed in accordance with the laws of the Federal Republic of Germany, without giving effect to any conflict of laws principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 <u>Further Assurances</u>. Following the Effective Date, the parties shall execute and deliver such additional documents, instruments, conveyances and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and give effect to the transaction contemplated by this Agreement and the documents to be delivered hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 <u>Counterparts</u>. This Agreement may be executed in counterparts, each of which shall be deemed an original, and both of which taken together shall constitute one and the same instrument. Counterparts may be delivered via facsimile, electronic mail (including .pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000 (*e.g.*, www.docusign.com)) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9 <u>Severability</u>. If any term or other provision of this Agreement is held to be invalid, illegal or incapable of being enforced by any rule of law or public policy, all other terms and provisions of this Agreement will nevertheless remain in full force and effect so long as the economics or legal substance of the transactions contemplated hereby are not affected in any manner materially adverse to any party. Upon determination that any term or other provision hereof is invalid, illegal or incapable of being enforced, the parties hereto will negotiate in good faith to modify this Agreement, as applicable, so as to effect the original intent of the parties as closely as possible to the fullest extent permitted by applicable law in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the greatest extent possible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10 <u>Jurisdiction.</u> Place of jurisdiction for all disputes arising from this contract is exclusively Freiburg im Breisgau.

**[Signature Page Follows]**

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**IN WITNESS WHEREOF**, the parties hereto have caused this Intellectual Property License Agreement to be duly executed as of the day and year first above written.

**<u>LICENSEE</u>**:<br>**IMRICOR MEDICAL SYSTEMS, INC.**<br>By: *<u>/s/ Steve Wedan</u>*<u> </u><u> </u><u> </u><br> Name: Steve Wedan<br> Title: Chief Executive Officer<br>**<u>LICENSOR</u>**:<br>**LIVETEC INGENIEURBUERO GMBH**<br>By: *<u>/s/ Michael Schirmeier</u>*<u> </u><u> </u><br> Name: Michael Schirmeier<br> Title: CEO<br>

**[Signature Page to Intellectual Property License Agreement]**

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**<u>SCHEDULE 1.2</u>**

**Licensed ASSETS**

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**<u>SCHEDULE 2.11</u>**

**<u>OTS, Open-Source and other Software used in the HAT-500 System</u>**

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**<u>SCHEDULE 6.1(b)</u>**

**TECHNICAL SUPPORT**

## Exhibit 21.1

**Exhibit 21.1**

**List of Subsidiary**

Imricor B.V. (Netherlands)