# EDGAR Filing Document

**Accession Number:** 0001838003
**File Stem:** 0001104659-25-125214
**Filing Date:** 2025-12
**Character Count:** 975573
**Document Hash:** 159e32ec8bd26c707f8a45b294742388
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001104659-25-125214.hdr.sgml**: 20251230

**ACCESSION NUMBER**: 0001104659-25-125214

**CONFORMED SUBMISSION TYPE**: S-1/A

**PUBLIC DOCUMENT COUNT**: 34

**FILED AS OF DATE**: 20251230

**DATE AS OF CHANGE**: 20251230

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Encore Medical, Inc.
- **CENTRAL INDEX KEY:** 0001838003
- **STANDARD INDUSTRIAL CLASSIFICATION:** SURGICAL & MEDICAL INSTRUMENTS & APPARATUS [3841]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 822906303
- **STATE OF INCORPORATION:** MN
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** S-1/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-290244
- **FILM NUMBER:** 251614228

**BUSINESS ADDRESS:**
- **STREET 1:** 2975 LONE OAK DRIVE
- **CITY:** EAGAN
- **STATE:** MN
- **ZIP:** 55121
- **BUSINESS PHONE:** 651-797-0913

**MAIL ADDRESS:**
- **STREET 1:** 2975 LONE OAK DRIVE
- **CITY:** EAGAN
- **STATE:** MN
- **ZIP:** 55121

[**TABLE OF CONTENTS**](#TOC)

#### REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ON DECEMBER 30, 2025

#### Registration No. 333-290244

### UNITED STATES SECURITIES AND EXCHANGE COMMISSION

#### Washington, D.C. 20549

#### AMENDMENT NO. 1 TO

### FORM S-1

#### REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

### ENCORE MEDICAL, INC.
(Exact name of registrant as specified in its charter)

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| | | |
|:---|:---|:---|
| **Minnesota** <br> (State or other jurisdiction of <br> incorporation or organization)  | **3841** <br> (Primary Standard Industrial <br> Classification Code Number)  | **82-2906303** <br> (I.R.S. Employer <br> Identification Number)  |

---

#### 2975 Lone Oak Drive, Suite 140 Eagan, MN 55121 Telephone: (651) 797-0913
(Address, including zip code, and telephone number, including area code, of registrant's principal executive offices)

#### Joseph A. Marino President and Chief Executive Officer Encore Medical, Inc. 2975 Lone Oak Drive, Suite 140 Eagan, MN 55121 Telephone: (651) 797-0913
(Name, address, including zip code, and telephone number, including area code, of agent for service)

#### Copies to:

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| | |
|:---|:---|
| **Amy Bowler <br> Holland & Hart LLP <br> 555 17<sup>th</sup> Street, Suite 3200 <br> Denver, CO 80202 <br> Telephone: (303) 295-8000**  | **William M. Mower <br> Andrew M. Tataryn <br> Maslon LLP <br> 225 South 6<sup>th</sup> Street, Suite 2900 <br> Minneapolis, MN 55402 <br> Telephone: (612) 672-8381**  |

---

#### APPROXIMATE DATE OF COMMENCEMENT OF PROPOSED SALE TO THE PUBLIC: AS SOON AS PRACTICABLE AFTER THE EFFECTIVE DATE OF THIS REGISTRATION STATEMENT.
If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box. ☐

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ☐

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-accelerator 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 7(a)(2)(B) of the Securities Act. ☐

 **The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.** 

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The information in this preliminary prospectus is not complete and may be changed. These securities may not be sold until the Registration Statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell nor does it seek an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

#### Subject to Completion, Dated December [ ], 2025

#### PROSPECTUS

### [3,000,000] Shares of Common Stock
![[MISSING IMAGE: lg_emi-4c.jpg]](lg_emi-4c.jpg)

![[MISSING IMAGE: lg_encoremedical-4c.jpg]](lg_encoremedical-4c.jpg)

This is the initial public offering of common stock of Encore Medical, Inc. We are selling [3,000,000] shares of our common stock.

Prior to this offering, there has been no public market for our common stock. The initial public offering price for our common stock is expected to be $[5.00] per share. We have applied for listing of our common stock on the NYSE American Market (NYSE American) under the symbol "EMI" and the closing of this offering is contingent on such listing.

We are an "emerging growth company" and a "smaller reporting company" as each such term is defined under the federal securities laws and, as such, have elected to comply with certain reduced reporting requirements for this prospectus and may elect to do so in future filings. See "Prospectus Summary — Implications of Being an Emerging Growth Company and a Smaller Reporting Company."

 **Investing in our common stock involves a high degree of risk. Please read "Risk Factors" beginning on page [\[10\]](#tRIFA) of this prospectus for factors you should consider before investing.** 

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

---

| | | |
|:---|:---|:---|
| | **Per Share**  | **Total**  |
| Initial public offering price  | $[5.00] | $[15,000,000] |
| Underwriting discounts and commissions<sup>(1)</sup>  | $[0.40] | $[1,200,000] |
| Proceeds, before expenses, to Encore Medical, Inc.  | $[4.60] | $[13,800,000] |

---

(1) We have agreed to pay the underwriters named in this prospectus an underwriter's fee of eight percent (8%) of the amount raised in the offering. We have also agreed to issue to the underwriters warrants in an amount equal to eight percent (8%) of the aggregate number of shares of common stock sold by us in this offering and exercisable one year after the effective date of the offering at a price per share equal to one hundred and twenty percent (120%) of the public offering price (the "Underwriters' Warrants"). We refer you to "Plan of Distribution" beginning on page [ ] of this prospectus for additional information regarding underwriting compensation.

We have granted the underwriters a 45-day option to purchase up to [450,000] additional shares of common stock from us at the initial public offering price per share, less underwriting discounts and commissions, to cover over-allotments, if any.

The underwriters expect to deliver the common stock to purchasers on or about [ ], 2026.

### OAK RIDGE FINANCIAL Dawson James Securities, Inc.
The date of this prospectus is [ ], 2026.

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#### **TABLE OF CONTENTS**

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| | |
|:---|:---|
| [CONVENTIONS AND ASSUMPTIONS USED IN THIS PROSPECTUS](#tCAAU)  | [ii](#tCAAU) |
| [INDUSTRY AND MARKET DATA](#tIAMD)  | [ii](#tIAMD) |
| [PROSPECTUS SUMMARY](#tPRSU)  | [1](#tPRSU) |
| [RISK FACTORS](#tRIFA)  | [10](#tRIFA) |
| [CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS](#tCNRF)  | [24](#tCNRF) |
| [USE OF PROCEEDS](#tUOP)  | [26](#tUOP) |
| [DIVIDEND POLICY](#tDIPO)  | [27](#tDIPO) |
| [CAPITALIZATION](#tCAP)  | [28](#tCAP) |
| [SERIES A PREFERRED STOCK CONVERSION](#tSAPS)  | [30](#tSAPS) |
| [DILUTION](#tDIL)  | [31](#tDIL) |
|  [MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](#tMDAA)  | [33](#tMDAA) |
| [BUSINESS](#tBUS)  | [45](#tBUS) |
| [MANAGEMENT](#tMAN)  | [55](#tMAN) |
| [EXECUTIVE COMPENSATION](#tEXCO)  | [61](#tEXCO) |
| [PRINCIPAL SHAREHOLDERS](#tPRSH)  | [64](#tPRSH) |
| [DESCRIPTION OF SECURITIES](#tDOS)  | [65](#tDOS) |
| [SHARES ELIGIBLE FOR FUTURE SALE](#tSEFF)  | [67](#tSEFF) |
| [PLAN OF DISTRIBUTION](#tPOD)  | [69](#tPOD) |
|  [MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS FOR NON-U.S. HOLDERS OF COMMON STOCK](#tMUFI)  | [73](#tMUFI) |
| [LEGAL MATTERS](#tLEMA)  | [74](#tLEMA) |
| [EXPERTS](#tEXP)  | [75](#tEXP) |
| [WHERE YOU CAN FIND MORE INFORMATION](#tWYCF)  | [76](#tWYCF) |
| [Index to Financial Statements](#fITFS)  | [F-1](#fITFS) |

---

i

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Through and including [ ], 2025 (the 25<sup>th</sup> day after the date of this prospectus), all dealers effecting transactions in our common stock, whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to a dealer's obligation to deliver a prospectus when acting as an underwriter and with respect to an unsold allotment or subscription.

Neither we nor any of the underwriters have authorized anyone to provide any information or to make any representations other than those contained in this prospectus or in any related free writing prospectuses. Neither we nor any of the underwriters take responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. This prospectus is an offer to sell only the shares of common stock offered by this prospectus, but only under circumstances and in jurisdictions where it is lawful to do so. The information contained in this prospectus is current only as of its date, regardless of the time of delivery of this prospectus or any sale of shares. Our business, financial condition, results of operations, and prospectus may have changed since that date.

For investors outside of the United States: neither we nor the underwriters have done anything that would permit this offering or possession or distribution of this prospectus or any free writing prospectus we may provide to you in connection with this offering in any jurisdiction where action for that purpose is required, other than in the United States. You are required to inform yourself about, and observe any restrictions relating to, this offering of the shares of our common stock and the distribution of this prospectus and any such free writing prospectus outside of the United States. See "Plan of Distribution."

#### CONVENTIONS AND ASSUMPTIONS USED IN THIS PROSPECTUS
Throughout this prospectus, our fiscal years ended December 31, 2023, and 2024 are referred to as fiscal years 2023 and 2024, respectively. Our fiscal year consists of 52 weeks, commencing on January 1 and ending on December 31 of each year.

Unless we indicate otherwise, all information in this prospectus assumes the underwriters do not exercise their option to purchase up to [450,000] additional shares of our common stock within 45 days from the date of this prospectus to cover over-allotments.

#### INDUSTRY AND MARKET DATA
This prospectus includes market data and forecasts with respect to the medical device industry. We have obtained this market data and certain industry forecasts from various independent third-party sources, including industry publications, reports by market research firms, surveys, and other independent sources. Some data and information are based on management's estimates and calculations, which are derived from our review and interpretation of internal company research and data, surveys, and independent sources. We believe the data regarding the industry in which we compete and our market position and market share within this industry generally indicate size, position and market share within this industry; however, this data is inherently imprecise and is subject to significant business, economic and competitive uncertainties and risks due to a variety of factors, including those described in "Risk Factors." These and other factors could cause our future performance to differ materially from our assumptions and estimates. See "Cautionary Note Regarding Forward-Looking Statements."

ii

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#### PROSPECTUS SUMMARY
 *This summary highlights information contained elsewhere in this prospectus and does not contain all of the information that you should consider in making your investment decision. Before investing, you should carefully read this entire prospectus, including our financial statements and the related notes included elsewhere in this prospectus and the information presented under the headings "Risk Factors," "Management's Discussion and Analysis of Financial Condition and Results of Operations" and our financial statements and the related notes included elsewhere in this prospectus. Some of the statements in this prospectus constitute forward-looking statements, see "Cautionary Note Regarding Forward-Looking Statements" for more information.* 

 *In this prospectus, the terms "Encore Medical," "Encore," the "Company," "we," "our," "ours" and "us" refer to Encore Medical, Inc.* 

#### The Company at a Glance
Encore Medical is a structural heart device company dedicated to the transcatheter closure of certain cardiac defects. The Company, though founded in 2017, builds on over two decades of experience, including more than 35,000 successful transcatheter defect closure implants, providing a significant foundation of expertise and clinical confidence. We offer closure devices that include features such as multi-element frame construction that adapts to varied anatomies, high closure rates, low arrhythmia incidence, and anatomical adaptability. Our delivery system enhances procedural control and safety, enabling retrievability and intuitive deployment.

#### Overview
We develop, manufacture, and market septal occlusion products, which are small, implantable devices delivered through a catheter inserted into a major blood vessel to permanently repair certain cardiac defects. Our devices include patented technology that has been in use extensively outside of the U.S. Procedures are performed in a cardiac catheterization lab and reduce the need for open heart surgery or a lifetime of drug therapy, which are currently the primary alternative methods for treating these defects. We have developed devices capable of providing effective, nonsurgical methods of correcting a variety of cardiac defects in both adults and children.

We have obtained CE Mark approval for our products, which is a prerequisite for the general sale of medical devices in the European Union (the "EU") and are currently marketing and selling our septal occlusion devices for the closure of certain cardiac defects through distribution partners in countries outside of the United States.

Our primary closure device is designed to repair a cardiac defect known as a patent foramen ovale ("PFO"). PFO is an abnormal passage or flap-like hole between the atrial chambers of the heart that can enable embolic material (clots) to travel from the right to left chambers and potentially cause a stroke. PFO is generally detected during adulthood. An estimated 25% of the population has a PFO, yet most people have no adverse effects and are unaware that they have a PFO. However, 50% of patients who suffer a cryptogenic (from an unknown cause) stroke also have a PFO. In the U.S., this represents approximately 139,000 patients annually, and at an assumed average sales price of $11,000 for each of our products, the potential annual market for our PFO products for stroke prevention may exceed $1.5 billion.

Previous clinical experiences indicate that in patients with migraine headaches and a PFO, closure of the PFO may eliminate or greatly reduce the occurrence of migraines. According to the Association of Migraine Disorders (Migrainedisorders.org), 13,000,000 people in the United States who have a PFO suffer from migraine headaches.

We believe we have a superior closure device for treating PFO defects. Our device features ease of deployment, low metal mass, low profile, conformity to the septal wall, accessibility upon reintervention, and a low incidence of post-implant arrythmia. Our PFO closure device addresses both the stroke and migraine markets.

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We also currently market and sell septal occlusion devices for the transcatheter closure of atrial septal defects ("ASD"). The ASD defect is generally described as a hole in the atrial septum that divides the right and left atria and is primarily a pediatric defect. The ASD market is a small market and is not a primary focus of our activities.

To date, our septal occlusion devices have been implanted in approximately 35,000 patients, all of whom reside in countries outside the United States, primarily for the purpose of treating PFO.

We currently do not have regulatory approval to sell our products in the United States, but the FDA has granted us an Investigational Device Exemption (IDE) approval to conduct our clinical trial to obtain market clearance for our PFO septal occlusion device for stroke. Such FDA approval, if obtained, would enable us to market our products throughout the United States. See "Business — Government Regulation" and "Risk Factors — Risks related to Regulation." Our FDA trial is currently underway and we estimate it will take approximately two years to complete. If we successfully complete this clinical trial, we would be required to submit an FDA PMA application for final FDA approval to begin marketing in the United States. There can be no assurance that we will not experience delays in this process or that the FDA will ultimately find our submission satisfactory. Even if we satisfactorily complete our clinical trial, there can be no assurance that the trial will yield sufficient results and data to allow commercial sales to be made in the United States. See "Risk Factors."

Our sales and marketing focus has been on the European market and other countries where we maintain the CE Mark and other certifications necessary to market our products. We market our products through a network of 11 international distributors to many countries, including Germany, the Czech Republic, Italy, Portugal, Spain, France, Switzerland, Austria, Lithuania, Hungary, Turkey, Mexico, and various countries in Central and South America. We are also adding independent distributors in countries in Central Asia, Central and South America. In the United States, the Company intends to develop and utilize a direct sales and marketing team, once our PFO device is approved for sale.

We are currently using cash flow from the sale of our products outside of the U.S. to help support our daily operations and have commenced this offering primarily to finance our U.S. clinical trials for the stroke and migraine indications.

#### Key Features of Our Devices
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • **Two Decades of Proven Design** 

Encore is built on over 20 years of experience and 35,000+ global implantations using the same core technology platform, resulting in a device informed by extensive real-world use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • **Ease of Implantability & Full Retrievability** 

Encore devices are engineered for smooth deployment, and are able to be fully retrieved or repositioned before final release if placement is not ideal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • **Effective Defect Closure & Tissue Preservation** 

Encore devices provide high closure rates with minimal residual shunting. They have low metallic surface area, which helps minimize thrombosis risk. The device also includes soft radiopaque discs that conform well to atrial anatomy, minimizing stress on tissue and preserving future trans-septal access to the left atrium.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • **Low Disturbance & Minimal Arrhythmias** 

Encore devices were designed to minimize disruption to normal blood flow and reduce force exerted on atrial walls, potentially resulting in a lower incidence of post-implant arrhythmias compared to competing devices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • **Anatomical Conformance & Self-Centering Design** 

The flexible, multi-element frame of Encore devices adapts in multiple dimensions to patient anatomy. The Company's ASD device is self-centering for optimal alignment, improving fit and reducing complications related to malpositioning.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • **Delivery System Optimized for Safety and Control** 

Encore's delivery system features J-shaped sheaths, radiopaque tips, a positive locking mechanism, and hemostasis introducers — tools carefully tailored to ease device deployment and enhance procedural control.

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#### Competitive Landscape
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The markets in which we compete and intend to compete are characterized by rapid technological change, evolving regulatory requirements, and intense competition. We face competition from a range of companies, including large, well-established medical device manufacturers, as well as smaller and emerging companies. Many of our competitors have significantly greater financial, technical, manufacturing, marketing, sales, regulatory, distribution, and other resources than we do, as well as longer operating histories and greater name recognition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Two of our primary competitors for PFO devices are Abbott Laboratories and W. L. Gore & Associates. These and other competitors may have advantages over us in areas such as physician familiarity, hospital contracting leverage, clinical data breadth, reimbursement experience, and the ability to respond more rapidly to new or changing regulatory, technological, or market conditions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our PFO and ASD products have received CE Mark certification, which permits commercialization in the European Union and in certain other countries that recognize or accept CE Mark approval. Since 2017, the Company has been marketing its products in approximately 20 countries outside the United States. (See "Business — Marketing, Sales and Distribution"). Each of these countries only requires the CE Mark for sales and marketing activities related to our products. While this regulatory status allows us to commercialize our products in those markets, we do not currently have approval from the FDA to market or sell our products in the United States. As a result, we are unable to compete commercially in the U.S. market unless and until we obtain FDA approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We are conducting a U.S. clinical trial in support of our PFO products to obtain FDA approval for the stroke indication. These efforts are expected to require significant financial, operational, and management resources, and there can be no assurance that our clinical study will be completed on a timely basis, that the results will support FDA approval, or that any such approval will be obtained at all. Delays or failures in obtaining FDA approval could materially limit our ability to compete in the United States and could adversely affect our business, financial condition, results of operations, and prospects. Further, the Company is supporting a study outside the U.S. to document the effectiveness of its products for a migraine indication. (See "Business — Migraine Headache").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We cannot assure that healthcare providers will adopt or continue to use our products instead of those of our competitors. Physicians, hospitals, and other healthcare providers may prefer competing products based on factors such as clinical outcomes, perceived safety and efficacy, ease of use, procedural familiarity, reimbursement considerations, pricing, product availability, or relationships with competitors. In addition, our competitors may develop or commercialize new or improved products, obtain regulatory approvals more quickly, or achieve broader reimbursement coverage, any of which could adversely affect our market position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Competitive pressures may also result in pricing pressure, reduced margins, reduced market share, or delays in achieving market acceptance. If we are unable to compete effectively, our business, financial condition, results of operations, and prospects could be materially and adversely affected.

#### Summary Risk Factors
An investment in our common stock involves a high degree of risk. Any of the factors set forth under "Risk Factors" may limit our ability to successfully execute our business strategy. You should carefully consider all of the information set forth in this prospectus, and, in particular, you should evaluate the specific factors set forth under "Risk Factors" in deciding whether to invest. Some of the more significant risks include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We have incurred net losses since inception, and we expect to incur net losses for the foreseeable future.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Inability to receive approval for or complete clinical trials, or experiencing significant delays in completing our clinical trials, could prevent or delay regulatory approval of our device and impair our financial position.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Clinical trial results may not be consistent with past experience and could hinder our ability to succeed.

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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; • The medical device industry is highly competitive and heavily regulated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • New products or technological changes in the market could make it difficult for us to compete.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We could face significant risk from product liability claims if our products result in injury.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Third-party reimbursement is essential to achieve our plan, and if it is limited or unavailable, it would have a material adverse impact on our business and growth potential.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Export and import regulations, including tariffs, could impact foreign operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Regulatory reforms in the EU may make it more difficult and costly for us to market or distribute our products.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We may be unable to enforce our intellectual property rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We will need additional capital to commercialize our products and may be unable to continue as a going concern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We may need to issue additional equity or take on debt financing that may be dilutive or detrimental to shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our results could be adversely impacted by foreign currency fluctuations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • All of our operations are conducted at one location, and any disruption at our facility could materially and adversely affect our businesses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We are dependent on vendors, consultants, Clinical Research Organizations (CROs) and other third parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We may need to implement a direct sales and marketing effort, which could require significant additional capital without any assurance that the strategy will be successful.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We are dependent on a small number of employees to implement our plan and may be unable to retain or attract qualified personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our ownership is concentrated and our officers and directors have significant control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Conflicts of interest may arise from the dual roles occupied by our Chief Executive Officer, our Vice President of Sales, and one of our directors, and their ownership interests in the Company and Cardia, Inc., which could influence decision-making and result in actions that may not be aligned exclusively with the best interests of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The offering price was negotiated between us and our underwriter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our shares may be thinly traded and have limited liquidity following our initial public offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Investors will incur immediate and substantial dilution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We have not paid and do not intend to pay dividends.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Investing in the offering is highly speculative and there is no assurance of a return on investment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Anti-takeover laws and provisions in our governing documents may be detrimental to our shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • We may have to implement additional finance and accounting systems to operate as a public company and we may be unable to file financial and other information on a timely basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Our business may be negatively impacted by natural disasters and future pandemics.

#### Implications of Being an Emerging Growth Company and a Smaller Reporting Company
We qualify as an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012 (the "JOBS Act"). As an emerging growth company, we may take advantage of specified reduced disclosure and other requirements that are otherwise applicable generally to public companies that are not emerging growth companies. These provisions include, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • being permitted to present only two years of audited financial statements and only two years of related "Management's Discussion and Analysis of Financial Condition and Results of Operations" disclosures in this prospectus;

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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; • reduced disclosure obligations about our executive compensation arrangements in our periodic reports, proxy statements and registration statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • no requirement to conduct non-binding shareholder advisory votes on executive compensation or golden parachute arrangements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • exemption from the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act of 2002, as amended (the "Sarbanes-Oxley Act"), in the assessment of our internal control over financial reporting.

We may take advantage of these exemptions for up to five years or such earlier time that we are no longer an emerging growth company. We would cease to be an emerging growth company if we have more than $1.235 billion in annual gross revenues as of the end of our fiscal year, we have more than $700 million in market value of our common stock held by non-affiliates as of the most recently completed second fiscal quarter or we issue more than $1.0 billion of non-convertible debt over a three-year period. We may choose to take advantage of some or all of these reduced disclosure obligations.

In particular, in this prospectus, we have provided only two years of audited financial statements and have not included all of the executive compensation-related information that would be required if we were not an emerging growth company. Accordingly, the information contained herein may be different than the information you receive from other public companies in which you hold stock.

The JOBS Act permits an emerging growth company like us to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. Our financial statements may, therefore, not be comparable to those of other public companies that comply with such new or revised accounting standards.

We are also a "smaller reporting company" as defined in Item 10(f)(1) of Regulation S-K. Smaller reporting companies may take advantage of certain reduced disclosure obligations, including, among other things, providing only two years of audited financial statements. We will remain a smaller reporting company until the last day of the fiscal year in which (1) the market value of our common stock held by non-affiliates exceeds $250 million as of the prior June 30, or (2) our annual revenues exceeds $100 million during such completed fiscal year and the market value of our common stock held by non-affiliates exceeds $700 million as of the prior June 30.

#### Company Information
Encore Medical, Inc. was incorporated as a Minnesota corporation on September 26, 2017. Our corporate offices are located at 2975 Lone Oak Drive, Suite 140, Eagan, Minnesota 55121, and our telephone number is 651-797-0913. Our website address is https://www.encore-medical.com. The information contained on, or accessible through, our website is not incorporated by reference into this prospectus, and you should not consider any information contained on, or that can be accessed through, our website as part of this prospectus or in deciding whether to purchase our common stock.

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#### The Offering
Issuer

Encore Medical, Inc.

Securities offered by us

[3,000,000] shares of common stock.

Option to purchase additional shares

We have granted the underwriters a 45-day option to purchase up to [450,000] additional shares of our common stock.

Underwriters' Warrants

We have agreed to issue to the underwriters, at the closing of this offering, warrants to purchase up to [240,000] shares of our common stock (the "Underwriters' Warrants"). The Underwriters' Warrants will become exercisable beginning one year after the closing date of this offering, and will be exercisable for a period of four (4) years thereafter at an exercise price equal to 120% of the initial public offering price. The Underwriters' Warrants may be exercised on a cashless basis. See "Plan of Distribution."

Common stock outstanding immediately before this

offering

6,743,425 shares as of December [ ], 2025

Common stock outstanding immediately after this

offering

[9,743,425] shares, or [10,193,425] shares if the underwriters exercise the over-allotment option in full.

Use of proceeds

We estimate that the net proceeds to us from this offering will be approximately $[12,960,000], or approximately $[14,880,000] if the underwriters exercise their over-allotment option in full, based on the initial public offering price of $[5.00] per share after deducting estimated underwriting discounts and commissions, and estimated offering expenses payable by us.

The principal purpose of this offering is to provide capital to finance clinical trials, particularly for stroke and migraine indications, working capital and for other general corporate purposes. We will have broad discretion in the way that we use the net proceeds of this offering. See "Use of Proceeds."

Dividend policy

We do not intend to pay dividends on our common stock. Any future determination to pay dividends to holders of common stock will be at the sole discretion of our board of directors and will depend upon many factors, including general economic conditions, our financial condition and results of operations, our available cash and current and anticipated cash needs and any other factors that our board of directors may deem relevant. See "Dividend Policy."

Risk factors

See "Risk Factors" and other information appearing elsewhere in this prospectus for a discussion of factors you should carefully consider before deciding whether to invest.

Trading

We have applied for listing of our common stock on NYSE American under the symbol "EMI."

The number of shares of common stock to be outstanding immediately after this offering is based on 6,743,425 shares of common stock outstanding as of December [ ], 2025, after giving effect to the conversion of all 876,000 outstanding shares of our Series A Preferred Stock into an aggregate of 876,000 shares of common stock immediately prior to the closing of this offering (the "Series A Conversion"). The number of shares of common stock that will be outstanding after this offering excludes: (i) [240,000]

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shares underlying warrants to be issued to the underwriter in connection with this offering, (ii) 450,643 shares of common stock reserved for issuance and 463,000 stock options issued and outstanding as of December , 2025, under the Encore Medical, Inc. 2018 Stock Incentive Plan, and (iii) 542,080 shares of common stock issuable upon the exercise of warrants issued and outstanding as of December , 2025 and (iv) [70,000] shares of common stock issuable upon conversion of the aggregate principal amount underlying convertible promissory notes outstanding as of December , 2025.

Unless we indicate otherwise or the context otherwise requires, all information in this prospectus assumes or gives effect to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the Series A Conversion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • no exercise by the underwriters of their option to purchase up to [450,000] additional shares of common stock from us to cover over-allotments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • no conversion of the convertible promissory notes outstanding as of December , 2025; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • an initial public offering price of $[5.00] per share of common stock.

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#### Summary of Historical Financial Data
The following summary statements of operations data for the fiscal years ended December 31, 2024 and 2023 and the summary balance sheet data as of December 31, 2024 and 2023 have been derived from our audited financial statements included elsewhere in this prospectus. We derived the summary statements of operations data for the nine months ended September 30, 2025 and 2024 and the balance sheet data as of September 30, 2025 from our unaudited financial statements that are included elsewhere in this prospectus. The unaudited financial data set forth below has been prepared on the same basis as our audited financial statements, and, in the opinion of management, reflects all adjustments, consisting only of normal recurring adjustments, that are necessary for the fair statement of such data. Our historical results are not necessarily indicative of the results that may be expected for any other period in the future and our interim results for the nine months ended September 30, 2025 are not necessarily indicative of results to be expected for the year ending December 31, 2025, or any other period.

The summary financial data in this section is not intended to replace the financial statements and related notes. The tables presented should be read in conjunction with "Management's Discussion and Analysis of Financial Condition and Results of Operations" and the financial statements and related notes included elsewhere in this prospectus.

#### Statement of Operations Data:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year Ended <br> December 31, <br> 2024**  | **Year Ended <br> December 31, <br> 2023**  | **Nine Months Ended September 30,**  | **Nine Months Ended September 30,**  |
| | **Year Ended <br> December 31, <br> 2024**  | **Year Ended <br> December 31, <br> 2023**  | **2025**  | **2024**  |
|  |  |  | **unaudited**  | **unaudited**  |
| **Summary Statements of Operations Data:** |  |  |  |  |
| Revenue  | $2134528 | $1434424 | $1290395 | $1543721 |
| Cost of goods sold  | 1361077 | 912078 | 873080 | 1022170 |
| Gross profit  | 773451 | 522346 | 417315 | 521551 |
| Operating expenses  | 2539723 | 1894079 | 911896 | 1632343 |
| Operating Income (Loss)  | (1766272) | (1371733) | (494581) | (1110792) |
| Non-operating expenses  | (79679) | (15124) | (62895) | (62825) |
| Net Income (Loss)  | $(1845951) | $(1386857) | $(557476) | $(1173617) |
| Weighted Average Shares Outstanding  | 5661954 | 5636425 | 5810282 | 5643286 |
| Net Loss per share  | $(0.33) | $(0.25) | $(0.10) | $(0.21) |

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#### Balance Sheet Data:

---

| | | | |
|:---|:---|:---|:---|
| | **December 31, <br> 2024**  | **December 31, <br> 2023**  | **September 30, <br> 2025**  |
|  |  |  | **unaudited**  |
| **Summary Balance Sheet Data:** |  |  |  |
| Cash  | $246829 | $305272 | $0 |
| Accounts Receivable  | 349472 |  | 330225 |
| Accounts Receivable – related party  |  | 381727 |  |
| Inventories  | 373598 | 466160 | 559695 |
| Other Current Assets  | 40564 | 25044 | 17856 |
| Total current assets  | 1010463 | 1178202 | 907775 |
| Total assets  | 1450054 | 1692909 | 1287073 |
| Total current liabilities  | 1011278 | 433965 | 1306653 |
| Total liabilities  | 2358049 | 1854880 | 2590353 |
| Total shareholders' equity (deficit)  | (907995) | (161972) | (1303280) |
| Working capital (deficit)  | $(815) | $744237 | $(398878) |

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#### RISK FACTORS
 *An investment in our common stock involves a high degree of risk. You should carefully consider the risks described below, together with the financial and other information contained in this prospectus, before you decide to invest. If any of the following risks actually occurs, our business, financial condition and results of operations could be materially and adversely affected. As a result, the trading price of our common stock could decline and you could lose all or part of your investment. Please also see "Cautionary Note Regarding Forward-Looking Statements."* 

#### Risks Related to Our Business

#### We have incurred net losses since inception and we expect to incur net losses for the foreseeable future.
We have and expect to continue to incur significant clinical and other development expenses and expect to continue to incur net losses for the foreseeable future. We had a net loss of $1,845,951 for the year ended December 31, 2024, and $557,566 for the nine months ended September 30, 2025. As of September 30, 2025, our accumulated deficit is $(6,448,446). There can be no assurance that we will be able to generate sufficient revenues or net cash flow from operations or be able to attain and maintain profitable operations. Subsequent to this offering, we may have to raise additional capital from investors, which may include future equity and debt financing. We may not have accurately anticipated how much we will accomplish with the net proceeds from this offering, or we may experience lower than expected cash generated from operating activities or greater than expected capital expenditures, cost of revenue or operating expenses, and we may require additional funding in the future to further our growth plans. Any additional fundraising efforts may divert our management from their day-to-day activities. Any disruptions in the financial markets or other adverse macroeconomic conditions may make equity and debt financing more difficult to obtain and may have a material adverse effect on our ability to meet our fundraising needs. We cannot guarantee that future financing will be available in sufficient amounts or on terms favorable to us, if at all.

 ***We were formed in 2017 and have a limited operating history, which makes it difficult to evaluate our future prospects and the likelihood of our success.***

To date, our commercial activities have been concentrated in select European markets. While we have obtained a CE Mark for our products, which enables the marketing and sales of our products in the European Union and other countries, we have not yet received regulatory clearance or approval to market or sell our products in the United States. (See Description of Business — Marketing, Sales and Distribution). As a result, we have generated only limited revenue, substantially all of which has come from sales outside of the United States. Our ability to achieve or sustain profitability is highly dependent on securing regulatory approvals in the United States and expanding the adoption of our products globally.

In addition, as a company with a limited operating history, we may encounter unforeseen expenses, difficulties, complications, delays and other known and unknown factors. The challenges we face in managing our evolving business place significant demands on our management, financial, operational, manufacturing, research and development and other resources. If we do not adequately address these risks and difficulties, our ability to support and further grow our commercial activities may be negatively impacted.

 ***Our financial statements raise a significant doubt about our ability to continue as a going concern unless we raise additional capital to fund our business plan.***

Our independent registered public accounting firm has included an explanatory paragraph in its opinion that accompanies our audited consolidated financial statements as of and for the year ended December 31, 2024, indicating that our current liquidity position raises substantial doubt about our ability to continue as a going concern for the 12-month period following the issuance of the financial statements. If we are unable to improve our liquidity position, we may not be able to continue as a going concern. Our ability to raise the capital needed to improve our financial condition and execute our business plan may be hindered by poor market conditions, regulatory or legal concerns, uncertain industry trends or other constraints.

Management currently plans to seek additional equity financing; however, there is no assurance that this effort will be successful or sufficient to sustain operations beyond the next fiscal year. If the Company is

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unable to obtain necessary funding or improve its liquidity position, it may be forced to curtail operations, seek bankruptcy protection, or liquidate assets at values below their carrying amounts, which could result in significant losses for shareholders and creditors.

#### We have made certain assumptions in developing our strategy for the business, which may be inaccurate.
The Company has formulated its business plans and strategies based on certain assumptions regarding the development, manufacture, and marketing of its products. These assumptions include, without limitation, assumptions about the following: (i) the Company's ability to obtain the necessary or desirable clearances and approvals from the United States Food and Drug Administration (the "U.S. FDA") and other regulatory bodies in order to market its devices in the United States and elsewhere; (ii) the outcome of clinical trials and studies conducted by the Company and its competitors relating to the efficacy of septal occlusion devices in general for treating various medical indications; (iii) the size of the market for the Company's devices; (iv) the regular and adequate reimbursement by third-party payors of the costs of the Company's septal occlusion devices and their implantation procedures; and (v) the acceptance in the medical community of an alternative method for treating cardiac defects. Although these assumptions are based on the best estimates of management, there can be no assurance that the Company's assessments regarding market size, market share, the establishment of sufficient causal links between septal occlusion devices (including the Company's products) and various medical indications, regulatory approvals or market acceptance of the Company's products or a variety of other factors will be correct. Any future success of the Company will depend upon many factors, including factors which may be beyond the control of the Company, or which cannot be predicted at this time. If any of our underlying assumptions are incorrect, our business, financial condition, and results of operations could be materially and adversely affected. Furthermore, our future success depends on a number of factors that are beyond our control or inherently difficult to predict.

#### We are exposed to risks from potential product liability claims.
The manufacture and sale of implantable medical device products entails significant risk of product liability claims. The Company faces an inherent risk of exposure to product liability claims if the use of its products results, or is alleged to result, in injury. The Company maintains product liability insurance that it believes provides appropriate coverage for the manufacture and sale of its products. This insurance also provides coverage in the United States for investigational devices. There can be no assurance, however, that insurance coverage will continue to be available to the Company at affordable rates, if at all. The Company cannot ensure that its current insurance or insurance that may be obtained in the future will provide adequate coverage against any or all potential claims. Our insurance policies may include significant exclusions, limitations, and conditions, and may not cover certain types of claims or damages. We may also be subject to claims that exceed policy limits. A liability claim, even one without merit, could result in significant legal defense costs that would increase the Company's expenses, lower its potential earnings, and result in continuing losses. See "Business — Product Liability Insurance." In addition, an adverse outcome in a product liability case, or a series of claims, could lead to negative publicity, reputational damage, increased regulatory scrutiny product recalls, or a loss of physician or patient confidence in the products. Any of these outcomes could materially and adversely affect our business, financial outcomes.

 ***We depend on our senior management team and the loss of one or more key employees or an inability to attract and retain qualified employees could harm our business.***

Our ability to develop and market our products and compete effectively depends, in large part, on the continued services of key members of our executive management team as well as our ability to attract, motivate and retain qualified personnel with scientific, marketing or technical experience. Competition for such personnel is intense and there can be no assurance that we will be able to attract and retain such personnel. In particular, the services and expertise provided by Messrs. Marino, Buonomo, and Robinson are critical to our overall management as well as the continued development of our solutions, strategies and operations. If we lose one or more key employees, we may experience difficulties in competing effectively, developing our technologies and implementing our business strategy. Our employees may terminate their employment with us at any time. We do not have key-person life insurance covering any of our employees.

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 ***If our business grows, it will place increased demands on our management and our operational and production capabilities that we may not be able to adequately address. If we are unable to meet these increased demands, our business will be harmed.***

If we do not manage our growth effectively, we may make mistakes in operating our business, such as inaccurate forecasting. The anticipated growth of our operations will place significant demands on our management and operational resources. In order to manage growth effectively, we must implement and improve our operational systems, procedures and controls on a timely basis. If we cannot manage our business effectively, our business could suffer. A failure to effectively manage this growth could result in delays in product development or commercialization, quality control issues, supply disruptions, or increased costs, and which could materially and adversely affect our business, financial condition, and results of operation.

#### If the market for our products does not grow as expected, our business and future prospects could be materially harmed.
Our business strategy depends on the continued adoption of implantable septal occlusion devices as a preferred treatment for certain cardiac conditions, including patent foramen ovale (PFO). If the market for these devices does not expand as expected — due to clinical skepticism, alternative treatments, reimbursement limitations, or insufficient physician training — our revenue potential may be limited. Market growth may also be constrained by lack of patient awareness, delays in guideline updates, or slow adoption in key markets. If the overall market opportunity is smaller than we anticipate, our business, financial condition, and results of operations could be materially adversely affected.

#### Product defects, safety issues, or recalls could result in significant liability and harm our reputation and business.
The development, manufacturing, and sale of medical devices involve inherent risks related to product performance and patient safety. If any of our products are found to have design or manufacturing defects, or are associated with unexpected adverse events, we could be subject to product recalls, safety notices, regulatory action, and product liability claims. Even if a recall or claim is not ultimately successful, it could result in negative publicity, increased regulatory scrutiny, and loss of physician and patient trust. Any issues with product quality or safety could materially and adversely affect our reputation, financial performance, and long-term commercial prospects.

#### We are dependent upon certain vendors, consultants, CROs and other third parties.
Our product development, manufacturing, testing and regulatory clearance efforts will be heavily dependent upon vendors, subcontractors, consultants, and other parties. We cannot assure you that these parties will be successful in assisting us in these efforts. Generally, product design, engineering, prototyping, testing and manufacturing are completed internally, while biological and compatibility testing, package testing, sterilization and animal pilot studies are conducted externally. Our business will be materially and adversely affected if our testing or regulatory clearance efforts are delayed, interrupted, or not completed by any of these parties or if our relationship with any of these parties were to change. Our business will also be materially and adversely affected if we are unable to source materials and components from suppliers to manufacture our products.

#### Our ability to generate revenue and achieve profitability is dependent on our ability to protect our intellectual property.
Our revenue and profitability will depend on our ability to obtain and enforce protections on our proprietary rights and technologies. We seek to protect our products and have obtained patent protection for our products. See "Business — Patents, Trademarks and Proprietary Rights." However, there can be no assurance that any existing or future patent applications will be issued, that the scope of any patent or trademark protection will exclude competitors or provide us with competitive advantages, that others will not claim rights or ownership of the patents, trademarks and other proprietary rights held by us or that our products and technologies will not infringe, or be alleged to infringe, the proprietary rights of others. Furthermore, there can be no assurance that others have not developed or will not develop similar

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technologies, duplicate any of our products or technologies, or design around our patents. In addition, others may hold or receive patents that contain claims having a scope that covers products subsequently developed by the Company.

Litigation may be necessary in the future to enforce any patents obtained by us to protect trade secrets or know-how owned by us, to defend against claimed infringement of the rights of others or to terminate the scope and validity of the proprietary rights of others. Such litigation, if necessary, could result in substantial cost to our Company and the diversion of management effort and resources. Even if we prevail, litigation could be protracted and expensive, and any unfavorable outcome could subject us to significant liability, require us to cease certain activities for our products, or force us to obtain licenses from third parties. Moreover, there is no assurance that we can prevail in any such actions or that licenses necessary for us to operate without patent protection would be available on satisfactory terms or at all.

#### All of our operations are at one location and any disruption could materially and adversely affect our business.
Because of the level of precision and quality required for our operations, we currently conduct and intend to conduct all of our manufacturing and preclinical work in-house at our own facility for the foreseeable future. Our facility and equipment would be costly to replace and could require substantial lead time to repair or replace. The facility may be harmed or rendered inoperable by natural or man-made disasters, including fire, flooding, terrorism, cyberattacks, power outages and other infrastructure failures. Any of these may render it difficult or impossible for us to perform our research, development and commercialization activities for some period of time. The inability to perform those activities may result in the loss of certain opportunities or harm to our reputation. Although we possess insurance for damage to our property and the disruption of our business, this insurance may not be sufficient to cover all of our potential losses and this insurance may not continue to be available to us on acceptable terms, or at all.

 ***Our Chief Executive Officer has a significant interest in, and relationships with Cardia, Inc., which may give rise to conflicts of interest and could affect our business, operations, and governance.***

Our Chief Executive Officer, Joseph Marino, and our Senior Vice President, Pete Buonomo, serve as directors and officers of both the Company and Cardia, Inc., the company from which we were spun out in 2017. Chris Turnbull is also a director of both companies. Each is a shareholder of both companies, and Mr. Marino is a significant shareholder of both. As a result of these overlapping roles and ownership interests, our Chief Executive Officer and Vice President of Sales may face conflicts of interest in allocating time and attention between the Company and Cardia, Inc. We have entered into related-party transactions with Cardia, Inc., including a manufacturing and supply agreement. (See Business — Related Party Transactions). Although our board of directors, a majority of whom are independent directors, oversees these relationships and although these transactions are intended to be conducted on an arm's length basis and subject to applicable governance and approval procedures, there can be no assurance that such transactions will not be perceived as creating conflicts of interest. In addition, Mr. Marino and Mr. Turnbull, also a director of the Company, have provided financing to the Company from time to time. These financing arrangements have been approved by our board of directors and determined to be necessary and in the best interests of the Company. Nevertheless, the existence of such arrangements could create actual or perceived conflicts of interest, including with respect to decisions regarding capital structure, financing alternatives, repayment priorities, or strategic transactions. While we believe that our corporate governance practices, including a majority-independent board of directors and an audit committee, mitigate the risk associated with these relationships, conflicts of interest may nevertheless arise. Any such conflicts, or the appearance thereof, could adversely affect our ability to attract and retain investors or maintain investor confidence, which could have a material adverse effect on our business. Our financial results may be negatively impacted by foreign currency fluctuations and tariffs.

For financial reporting purposes, our sales and expenses are denominated in U.S. dollars. However, substantially all of our revenue to date has been generated in foreign countries and denominated in foreign currencies, such as the European Economic Union's Euro and Canadian Dollar. As a result, our financial results are subject to volatility from changes in exchange rates. Currency fluctuations could in the future have a negative impact on our financial condition. For example, a strengthening U.S. dollar would result in lower sales and earnings for financial reporting purposes. Similarly, our sales and earnings could in the future

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be lower than expected due to fluctuations between foreign currencies against each other and against the U.S. dollar. Our sales and earnings may also be impacted by tariffs instituted by the United States or in foreign countries where we do business. New or increased tariffs, duties, or other trade restrictions could increase our costs, reduce our margins, delay shipments, or make our products less competitive in certain markets. Both currency fluctuations and tariffs could have a material adverse effect on our revenue and cash flows. In addition, trade tensions, retaliatory measures, or changes in trade policies could further exacerbate these risks and introduce uncertainty.

#### We have a material customer concentration, with a limited number of customers accounting for a material portion of our 2024 and 2025 revenues.
We derive a substantial portion of our revenues from a limited number of customers. As of December 31, 2024, four customers accounted for 83.6% of our total accounts receivable. As of September 30, 2025, one customer accounted for 73.8% of our total accounts receivable. These customers periodically maintain sizeable outstanding balances with us. While we have not experienced significant collection issues with these customers, our reliance on a limited number of customers could expose us to risks, including delays in payments or loss of a major customer, any of which could have a material adverse effect on our business, financial condition, and results of operations.

#### We may face challenges expanding into international markets, which could limit our growth potential.
Although we have obtained CE Mark approval and generate revenue from European markets, our ability to expand internationally is subject to numerous risks, including varying regulatory standards, pricing and reimbursement environments, language and cultural barriers, and economic or political instability. In some jurisdictions, we may encounter delays in product approvals, limited market access, or unfavorable pricing conditions. If we are unable to effectively establish commercial infrastructure or build relationships with local distributors, physicians, and payors, our international growth may be limited.

#### We may be required to hire a direct sales and marketing team to sell our products in the U.S.
Should we elect to pursue a direct sales and marketing channel for the sale of our products in the U.S., we will need to finalize our plan for the build out of that function, potentially requiring significant additional capital. There can be no assurance that we will be able to successfully build a sales and marketing team, or that we will be able to successfully market and sell our products in the U.S.

#### A failure of our IT systems could have a material adverse impact on our business operations and financial condition.
We rely on IT systems, networks, and services, including internet sites, data hosting and processing facilities and tools, hardware (including laptops and mobile devices), software and technical applications and platforms, some of which are managed, hosted, provided and used by third parties or their vendors, to assist us in the management of our business. Increased IT security threats pose a potential risk to the security of our IT systems, networks and services, as well as the confidentiality, availability, and integrity of our data, and we may experience cyberattacks and other unauthorized access attempts to our IT systems. In the event of a ransomware or other cyber-attack, the integrity and safety of our data could be at risk or we may incur significant costs that could have a material adverse impact on our business and financial condition.

Our existing general liability and cybersecurity liability insurance policies may not cover, or may cover only a portion of, any potential claims related to security breaches to which we are exposed or may not be adequate to indemnify us for all or any portion of liabilities that may be imposed. We also cannot be certain that our existing insurance coverage will continue to be available on acceptable terms or in amounts sufficient to cover the potentially significant losses that may result from a security incident or breach or that the insurer will not deny coverage of any future claim. Accordingly, if our cybersecurity measures, and those of our customers and service providers, fail to protect against unauthorized access, attacks (which may include sophisticated cyberattacks), and the mishandling of data, then our reputation, business, financial condition, results of operations and prospects could be materially and adversely affected.

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#### Our failure to adequately maintain and protect personal information of our customers or employees could have a material adverse effect on our business.
We may collect, use, store, disclose or transfer (collectively, "process") personal information, including from employees, customers, payers and others in connection with the operation of our business. In the event of patient data collection, we may use approved 3rd party vendors to ensure compliance with medical industry standards and regulations. A wide variety of local and international laws as well as regulations and industry guidelines apply to the privacy and collecting, storing, use, processing, disclosure and protection of personal information and may be inconsistent among countries or conflict with other rules. Data protection and privacy laws and regulations are changing, subject to differing interpretations and being tested in courts and may result in increasing regulatory and public scrutiny and escalating levels of enforcement and sanctions. Our actual or alleged failure to comply with any applicable privacy and data protection laws and regulations, industry standards or contractual obligations, or to protect such information and data that we process, could result in litigation, regulatory investigations, and enforcement actions against us and could have a material adverse impact on our business and financial condition.

#### Risks related to Our Industry

#### The medical device industry is heavily regulated, intensely competitive, and has a high failure rate.
The implantable medical device industry is a market in which there is an increasing number of companies, intense competition, extensive regulation and a high failure rate. Our prospects must be considered in light of the substantial risks, expenses and difficulties encountered in the heavily regulated medical device industry.

#### We face intense competition in our markets and for our products.
The markets in which we compete and intend to compete are characterized by rapidly evolving technology and intense competition. Our principal competitors are large, established companies with name recognition and research and development, marketing, production, sales, financial and other resources far greater than ours. Two of our primary competitors in the U.S. for PFO products are Abbott Laboratories and W.L. Gore. We cannot assure that healthcare providers will view our products as competitive with the products marketed and sold by larger, more established companies. While we believe our products have features that are superior to these competitors, there can be no assurance that we will be able to compete successfully against these or other competitors or that the competitive pressures we face will not adversely affect our business, operating results and financial condition. See "Business — Competition." In addition, new market entrants, technological advances, or changes in reimbursement could further intensify competitive pressures.

#### We face pricing pressure from competitors, payors, and procurement practices, which may negatively impact our margins.
We operate in a competitive market where pricing pressure is common due to public and private payors seeking to reduce healthcare costs, hospitals engaging in group purchasing negotiations, and competitors offering volume-based or bundled pricing. If we are unable to maintain favorable pricing, or if reimbursement rates decline, our gross margins and revenue could be adversely affected. Additionally, as we seek to expand into new markets or negotiate with large hospital systems, we may be required to offer discounted pricing, which could further pressure our profitability.

 ***Our industry is characterized by rapid technological change and there is no assurance that we will be able to develop or respond to technological changes or new products developed by competitors.***

The medical device industry is characterized by rapid technological change. There can be no assurance that we will be able to develop or acquire new products or effectively respond to technological changes or new products developed by competitors. We cannot ensure that our current products, or products under development, will achieve or maintain market acceptance. Certain of the medical indications that can be treated by our devices can also be treated by surgery, drugs or other medical devices. Currently, the medical community widely accepts many alternative treatments that have a long history of use. We cannot ensure that physicians or the medical community, in general, will accept and use our devices or any other medical

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products that we may develop. In addition, our success may also depend, in part, on our ability to develop new and improved implant technologies and products. Even if we determine that a product has medical benefits, the cost of commercialization may be too high to justify development. In addition, competitors may develop products that are more effective, cost less or are ready for commercial introduction before our products. If we are unable to enhance existing products or develop new commercially viable products or obtain the requisite approvals in markets such as the United States to market our existing or future products, our business and prospects could be harmed.

#### Third-party reimbursement is critical to the success of our business.
We believe the availability and adequacy of third-party reimbursement is critical to the adoption and commercial success of our products and to the attainment of desired revenues. (See Business — Third-Party Reimbursement). In the United States, health care providers such as hospitals and physicians that purchase medical devices such as ours generally rely on third-party payors, such as Medicare, Medicaid and private health insurance plans to reimburse all or part of the cost of the procedure in which the medical device is being used. Physicians' decisions to recommend devices such as ours are likely to be heavily influenced by the scope and extent of reimbursement for these products by third-party payors. Government and private third-party payors are increasingly attempting to contain health care costs by limiting both the extent of coverage and the reimbursement rate for new treatment products. In particular, services that are determined to be investigational in nature or which are not considered "reasonable and necessary" for treatment may be denied reimbursement coverage. Reimbursement and health care payment systems in international markets vary significantly by country and include both government sponsored health care and private insurance. While reimbursement has been established in the U.S. for approved competing products, if adequate reimbursement coverage is not available from insurers or third-party payors in the United States and foreign markets, it is uncertain whether individuals would elect or be able to directly pay for our products. If insurers or third-party payors and individuals are unwilling to pay for our products under development, our potential revenue and earnings would be significantly decreased or eliminated.

#### Future pandemics could have a negative impact on our industry and our business.
During the COVID-19 pandemic, elective surgeries were significantly curtailed. Future global pandemics may have a material and negative impact on our industry and our business and prevent us from executing on our business plan. Among other potential impacts, prevalent community spread in many parts of the U.S. and resulting state and local stay-at-home orders and related guidelines may materially disrupt our manufacturing supply chains and make it difficult or impossible to conduct clinical trials of our products on our desired timetable. Outside of the U.S., in markets where our products are currently available for sale, a pandemic may decrease demand for our products as potential customers avoid undergoing surgical procedures determined to be non-emergency in nature. A pandemic may also lead to a deterioration in general economic conditions in the U.S. and abroad that could negatively impact our business. There can be no assurance that we would be able to successfully navigate the challenges of a pandemic and execute our business plan.

#### Risks related to Regulation

#### Government regulation of medical devices is extensive in the U.S. and other countries.
Government regulation in the United States and other countries is a significant factor in the development and marketing of our products and our ongoing manufacturing and research and development activities. Our products are considered to be medical devices and, therefore, require clearance or approval by the FDA before commercial sales can be made in the United States. The process of obtaining FDA clearance or approval to market a product varies according to the nature and use of the product and can involve lengthy and detailed laboratory and clinical testing, sampling activities and other costly and time-consuming procedures that can span many years. Our current products and other products we may develop in the future may require compliance with the FDA's Class III device regulations. Class III devices are those devices for which pre-market approval (as distinct from pre-market notification) is required to assure the device's safety and effectiveness prior to commercial distribution.

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We have begun applying for but have not yet received marketing clearance from the FDA to sell any of our products in the United States. There can be no assurance when this approval will be received, if ever. On September 7, 2022, the FDA granted us an Investigational Device Exemption ("IDE") application to commence Class III clinical trials in the United States for our PFO septal occlusion devices. An IDE is required to conduct the clinical trial that is necessary to gather the data that would form the basis for a Pre-Market Approval Application ("PMA"). We have initiated the clinical trial, which could take several years to complete. There can be no assurance that such trial can or will be completed in a timely manner, or at all, or that such trial will yield sufficient results to support final approval by the FDA of the PMA application necessary for commercial sales to be made in the United States. Our inability to ultimately obtain the approvals necessary to market our products in the United States, or such approvals on a timely basis, would have a material adverse effect on our business, financial condition, and results of operations. Failure to obtain or delays in obtaining necessary FDA approvals could prevent or significantly delay our entry into the U.S. market, which would have a material adverse effect on our business, financial condition, and results of operations. See "Business — Government Regulation."

#### We may experience difficulty enrolling patients in our clinical trials, which could delay or prevent regulatory approval.
Timely enrollment of patients in clinical trials is essential to meeting our development timelines. Factors that may adversely affect enrollment include the relative rarity of eligible patients, competition from other ongoing clinical studies, strict inclusion criteria, physician or site availability, and patient concerns about participation. If we are unable to enroll patients in accordance with our projected schedule, we may experience delays or increased costs in completing our clinical trial, which could delay regulatory approval and commercialization of our products in the United States.

#### Unfavorable outcomes from clinical trials could materially and adversely affect our future products and business plans.
The success of our ability to generate value for our shareholders is dependent upon, among other things, the outcome of U.S. FDA clinical trials that establish the non-inferiority of our products to approved competitive products and intended clinical outcomes. An unfavorable outcome of future studies or U.S. FDA clinical trials conducted by us or other competitors, which include any of our products, could materially and adversely affect our estimates of the market potential for our existing and future products and business plans.

#### Export and import regulations, including tariffs, may negatively impact our foreign operations.
Sales of medical devices outside the United States are subject to the United States export requirements and foreign regulatory requirements. Legal restrictions on the sale of imported medical devices generally vary from country to country. The time and requirements to obtain approval by a foreign country outside of the EU may differ substantially from those applicable in the United States and Europe. Although we have obtained CE Mark approval, which permits us to sell our current septal occlusion devices in the EU and elsewhere, we may encounter obstacles in selling our devices in other countries or be unable to obtain other regulatory approvals or clearances that may be necessary in the future. Furthermore, the U.S. or other countries may impose or increase trade tariffs on products and components that could have a material adverse impact on our business. Changes in international trade policies, customs procedures, or sanctions may also affect our ability to sell or ship devices into key markets.

#### Regulatory reforms in the EU may make it more difficult and costly for us to market or distribute our products in the EU.
The EU landscape concerning medical devices has evolved. On May 25, 2017, the EU Medical Devices Regulation went into effect, which repealed and replaced the EU Medical Devices Directive. This modification has an effect on the way we conduct our business in the EEA. For example, as a result of the transition toward the new regime, notified body review times have lengthened, and product introductions or modifications could be delayed or canceled, which could adversely affect our ability to grow our business. We cannot determine what effect changes in regulations, statutes, legal interpretation or policies, when and

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if promulgated, enacted or adopted may have on our business in the future. Such changes could, among other things, require additional testing prior to obtaining clearance or approval; changes to manufacturing methods; recall, replacement or discontinuance of our products; or additional record keeping.

#### Risks related to our Common Stock and this Offering
 ***We will need to implement additional finance and accounting systems, procedures and controls to satisfy public company reporting requirements, which will increase our costs and divert management's time and attention.***

As a public company, we will incur significant legal, accounting and other expenses that we did not incur as a private company, including costs associated with our public company reporting requirements and corporate governance requirements, including requirements under the Sarbanes-Oxley Act, as well as new rules implemented by the Securities and Exchange Commission ("SEC") and NYSE American.

As an example of reporting requirements, we are evaluating our internal control systems to allow management to report on our internal control over financial reporting, as required by Section 404 of the Sarbanes-Oxley Act. As a company with limited capital and human resources, we anticipate that more of management's time and attention will be diverted from our business to ensure compliance with these regulatory requirements compared to a company with established controls and procedures. This diversion of management's time and attention may have a material adverse effect on our business, financial condition and results of operations.

 ***We are eligible to be treated as an emerging growth company, and the reduced disclosure requirements applicable to emerging growth companies may make our shares less attractive to investors.***

Upon consummation of the initial public offering, we will be an emerging growth company, as defined in the JOBS Act. For as long as we continue to be an emerging growth company, we may take advantage of exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including, among others, (1) not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, (2) reduced disclosure obligations regarding executive compensation in this prospectus and our periodic reports and proxy statements, (3) exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved and (4) the requirement to present only two years of audited financial statements and only two years of related "Management's discussion and analysis of financial condition and results of operations" disclosures in this prospectus. We could be an emerging growth company for up to five years, although circumstances could cause us to lose that status earlier, including if the market value of our common stock held by non-affiliates exceeds $700 million as of the end of the second fiscal quarter in any fiscal year before that time or if we have total annual gross revenues of $1.235 billion or more during any fiscal year before that time, in which case we would no longer be an emerging growth company as of the fiscal year end, or if we issue more than $1.0 billion in non-convertible debt during any three-year period before that time we would cease to be an emerging growth company immediately. We cannot predict if investors will find our common stock less attractive because we may rely on these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our share price may be more volatile.

Under the JOBS Act, emerging growth companies can also delay adopting new or revised accounting standards until such time as those standards apply to private companies. We have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies and intend to continue such election until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. Our financial statements may therefore not be comparable to those of other public companies that comply with such new or revised accounting standards.

 ***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 common stock may decrease.***

We are in the process of designing and implementing our internal controls over financial reporting, which will be time-consuming, costly and complicated. While performing the audit of our 2024 and 2023

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financial statements, our auditors identified material weakness in our internal controls over financial reporting related to our financial close and reporting, inventory valuation and document retention. We cannot provide assurances that there will not be material weaknesses or significant deficiencies in our internal control over financial reporting in the future. If we identify additional material weaknesses in our internal control over financial reporting, if we are unable to comply with the requirements of Section 404 in a timely manner, if we are unable to assert that our internal control over financial reporting is effective or, once required, if our independent registered public accounting firm is unable to attest that our internal control over financial reporting is effective, investors may lose confidence in the accuracy and completeness of our financial reports and the market price of common stock could decrease. We could also become subject to shareholder or other third-party litigation as well as investigations by NYSE American, the SEC or other regulatory authorities, which could require additional financial and management resources and could result in fines, trading suspensions or other remedies.

#### If you purchase common stock in this offering, you will suffer immediate and substantial dilution of your investment.
The initial public offering price of common stock is substantially higher than the net tangible book value per share. Therefore, if you purchase common stock in this offering, you will pay a price per share that substantially exceeds our net tangible book value per share after this offering. Based on the initial public offering price of $[5.00] per share you will experience immediate dilution of $[3.80] per share, representing the difference between our pro forma as adjusted net tangible book value per share after giving effect to this offering and the initial public offering price. In addition, purchasers of common stock in this offering will have contributed [71.7]% of the aggregate price paid by all purchasers of our common stock but will own only approximately [30.8]% of our common stock outstanding after this offering. See "Dilution" for more detail.

 ***Your percentage ownership in us may be diluted by future issuances of capital stock, which could reduce your influence over matters on which shareholders vote.***

Pursuant to our articles of incorporation and bylaws, our board of directors has the authority, without action or vote of our shareholders, to issue all or any part of our authorized but unissued stock, including shares issuable upon the exercise of options, warrants or shares of our authorized but unissued preferred stock. Issuances of common stock or voting preferred stock would reduce your influence over matters on which our shareholders vote and, in the case of issuances of preferred stock, would likely result in your interest in us being subject to the prior rights of holders of that preferred stock.

#### An active, liquid trading market for our common stock may not develop, which may limit your ability to sell your shares.
Prior to this offering, there was no public market for our common stock. Although we have applied to list shares of our common stock on NYSE American under the symbol "EMI," an active trading market for our shares may never develop or be sustained following this offering. The initial public offering price will be determined by negotiations between us and the underwriters and may not be indicative of market prices of our common stock that will prevail in the open market after the offering. A public trading market having the desirable characteristics of depth, liquidity and orderliness depends upon the existence of willing buyers and sellers at any given time, such existence being dependent upon the individual decisions of buyers and sellers over which neither we nor any market maker has control. The failure of an active and liquid trading market to develop and continue would likely have a material adverse effect on the value of our common stock. The market price of our common stock may decline below the initial public offering price, and you may not be able to sell your shares of our common stock at or above the price you paid in this offering, or at all. An inactive market may also impair our ability to raise capital to continue to fund operations by selling shares and may impair our ability to acquire other companies or technologies by using our shares as consideration.

 ***As a public company, we will become subject to additional laws, regulations and stock exchange listing standards, which will impose additional costs on us and may strain our resources and divert our management's attention.***

Prior to this offering, we operated on a private basis. After this offering, we will be subject to the reporting requirements of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), the

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Sarbanes-Oxley Act, the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, the listing requirements of NYSE American and other applicable securities laws and regulations. Compliance with these laws and regulations will increase our legal and financial compliance costs and make some activities more difficult, time-consuming or costly. We also expect that being a public company and being subject to new rules and regulations will 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. However, the incremental costs that we incur as a result of becoming a public company could exceed our estimate. These factors may therefore strain our resources, divert management's attention and affect our ability to attract and retain qualified members of our board of directors.

 ***A significant portion of our total outstanding shares are restricted from immediate resale but may be sold into the market in the near future. This could cause the market price of our common stock to drop significantly, even if our business is performing well.***

Sales of a substantial number of shares of our common stock in the public market could occur at any time. These sales, or the perception in the market that the holders of a large number of shares intend to sell shares, could reduce the market price of our common stock. After this offering, we will have outstanding [9,743,425] shares of common stock based on the number of shares outstanding as of December [ ], 2025. This includes [3,000,000] shares that we are selling in this offering, which may be resold in the public market immediately. A significant number of the shares held by existing investors will be subject to a 180-day lock-up period provided under agreements executed in connection with this offering. These shares will, however, be able to be resold after the expiration of the lock-up agreement, as described in the "Shares eligible for future sale" section of this prospectus. We will also file a Form S-8 under the Securities Act to register all securities that we may issue under our equity compensation plans. As restrictions on resale end, the market price of our stock could decline if the holders of currently restricted shares sell them or are perceived by the market as intending to sell them.

 ***Since we have no current plans to pay cash dividends on our common stock following this offering, you may not receive any return on investment unless you sell your common stock for a price greater than that which you paid for it.***

We do not anticipate paying any cash dividends on our common stock following this offering. Any decision to declare and pay dividends in the future will be made at the discretion of our board of directors and will depend on, among other things, our results of operations, financial condition, cash requirements, contractual restrictions and other factors that our board of directors may deem relevant. In addition, our ability to pay dividends is, and may be, limited by covenants of existing and any future outstanding indebtedness we or our subsidiaries incur. Therefore, any return on investment in our common stock is solely dependent upon the appreciation of the price of our common stock on the open market, which may not occur. See "Dividend Policy" for more detail. Accordingly, you should not rely on an investment in our common stock for dividend income. Any return on your investment will likely depend entirely upon any future appreciation in the market price of our common stock.

 ***If securities or industry analysts do not publish research or reports about our business, if they adversely change their recommendations regarding our shares or if our results of operations do not meet their expectations, our share price and trading volume could decline.***

The trading market for our shares will be influenced by the research and reports that industry or securities analysts publish about us or our business. We do not have any control over these analysts. Securities and industry analysts do not currently, and may never, publish research on us. If no securities or industry analysts commence coverage of our company, the trading price of our shares could be negatively impacted. In the event securities or industry analysts initiated coverage, and one or more of these analysts cease coverage of our company or fail to publish reports on us regularly, we could lose visibility in the financial markets, which in turn could cause our share price or trading volume to decline. Moreover, if any of the analysts who cover us downgrade our stock, or if our results of operations do not meet their expectations, our share price could decline.

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#### We will have broad discretion in the use of net proceeds from this offering.
Our management will have broad discretion over the use of the net proceeds of this offering. We intend to use the net proceeds from this offering primarily to fund our clinical trials, particularly for stroke and migraine indications. The proceeds may also be used for working capital and general corporate purposes. However, this expected use of the net proceeds from this offering represents our intentions based upon our current plans and business conditions, which could change in the future as our plans and business conditions evolve. Accordingly, investors in this offering will need to rely upon the judgment of our management with respect to the use of proceeds with only limited information concerning management's specific intentions. See "Use of Proceeds" for additional information.

 ***Our officers and directors will continue to hold a significant percentage of our shares after this offering with significant influence in determining the outcome of any matters submitted to shareholders for approval.***

Based on 6,743,425 shares of our common stock outstanding as of December , 2025, after giving effect to the Series A Conversion, upon completion of this offering, our officers and directors collectively will own approximately 29.0% of our outstanding common stock based on the SEC's beneficial ownership rules (assuming no exercise of the underwriters' option to purchase additional shares), of which Mr. Marino, our Chairman and CEO, will own, when combined with family members' ownership, approximately 18.9% of our outstanding common stock following completion of the offering (assuming no exercise of the underwriters' option to purchase additional shares). As such, our officers and directors will have significant influence in determining the outcome of any matters submitted to shareholders for approval, including the election of directors and any merger, consolidation, sale of all or substantially all of our assets, or other significant corporate transactions.

#### Anti-takeover laws and provisions could impede or diminish the value of a sale of our company.
The effect of certain provisions of the Minnesota Business Corporation Act and the ability of our board of directors to issue preferred stock without shareholder approval may have the effect of delaying or preventing a change in control or merger of us which could operate to the detriment of our shareholders. See "Description of Securities."

 ***Our operating results and share price may be volatile, and the market price of our common stock after this offering may drop below the price you pay.***

Our quarterly and annual operating results are likely to fluctuate in the future as a publicly traded company. In addition, securities markets worldwide have experienced, and are likely to continue to experience, significant price and volume fluctuations. This market volatility, as well as general economic, market or political conditions, could subject the market price of our shares to wide price fluctuations regardless of our operating performance. We and the underwriters will negotiate to determine the initial public offering price. You may not be able to resell your shares at or above the initial public offering price or at all. Our operating results and the trading price of our shares may fluctuate in response to various factors, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • actual or anticipated fluctuations in our quarterly financial and operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • introduction of new products or product enhancements by us or our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • issuance of new or changed securities analysts' reports or recommendations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • results of operations that vary from expectations of securities analysts and investors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • guidance, if any, that we provide to the public, any changes in this guidance or our failure to meet this guidance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • strategic actions by us or our competitors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • announcement by us, our competitors or our vendors of significant contracts or acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the results of our clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to obtain FDA approval to market our products in the US;

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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; • the availability of reimbursement for our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • additions or departures of key personnel;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • regulatory, legislative or political developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • public response to press releases or other public announcements by us or third parties, including our filings with the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • litigation and governmental investigations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • changes in general economic and market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • changes in accounting principles;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • default under agreements governing our indebtedness;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • exchange rate fluctuations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • other events or factors, including those from public health crises, natural disasters, war, acts of terrorism or responses to these events.

These and other factors, many of which are beyond our control, may cause our operating results and the market price and demand for our shares to fluctuate substantially. In addition, the share prices of many companies in the medical device industry have experienced wide fluctuations that have often been unrelated to the operating performance of those companies. While we believe that operating results for any particular quarter are not necessarily a meaningful indication of future results, fluctuations in our quarterly operating results could limit or prevent investors from readily selling their shares and may otherwise negatively affect the market price and liquidity of our shares.

In addition, in the past, when the market price of a stock has been volatile, holders of that stock have sometimes instituted securities class action litigation against the company that issued the stock. If any of our shareholders brought a lawsuit against us, we could incur substantial costs defending the lawsuit. Such a lawsuit could also divert the time and attention of our management from our business, which could significantly harm our profitability and reputation.

 ***We may require additional capital to pursue our business objectives. If such capital is not available to us, our business, financial condition and results of operations may be materially and adversely affected.***

We may require additional capital to pursue regulatory approvals, marketing and manufacturing of products, as well as other expenditures. There can be no assurance that we will not require additional funding to complete regulatory requirements or otherwise implement our business plan if operating costs are higher or revenues are lower than expected, or if the acceptance of our products does not proceed or continue as expected. In the event additional financing is necessary, we may be required to seek it from a number of sources, including possible further sales of equity securities, loans from banks or other financial institutions, or possible alliances with other interested parties. No assurance can be given that we will be able to obtain additional financing at all or on terms favorable or acceptable to us. Global economic conditions may also adversely impact our ability to raise or obtain additional capital. Global economic conditions and capital market volatility may also adversely affect our ability to raise additional capital. If we are required to sell additional securities, we may have to do so at a price that is less than the price paid by purchasers in the offering. The terms of any financing may adversely affect the rights of our shareholders. The sale of additional equity or convertible securities would dilute all of our shareholders.

#### We may not be able to meet our debt obligations, and any default could have a material adverse effect on our financial condition.
We have significant indebtedness in the form of secured and unsecured promissory notes that mature in 2026, and our ability to repay or refinance these obligations may be limited, which could materially and adversely affect our financial condition and results of operations. We currently have incurred $1,000,000 in indebtedness for borrowed money from a third-party lender. That indebtedness is secured by all of the Company's assets and matures on November 2006. (See "Management's Discussion and Analysis of Financial

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Condition and Results of Operations — Merit Financing Agreement"). In the event of a default under that note, the secured holder would have priority over our unsecured creditors and shareholders with respect to the collateral securing the note and could exercise remedies that could materially impair our ability to continue operations and could result in a loss of value for our investors. We have also incurred unsecured indebtedness for borrowed money, evidenced by three promissory notes of like tenor, in the aggregate amount of $350,000, that, unless extended or converted at the option of the holder prior to repayment, mature on June 30, 2026. Holders of two of those unsecured notes are insiders of the Company. (See Management's Discussion and Analysis of Financial Condition and Results of Operations — Short-Term Debt and — Certain Relationships and Related Party Transactions"). The existence of these promissory notes may limit our ability to obtain additional financing, as potential lenders or investors may view our near-term maturities as increasing the risk profile of our company. We may incur additional debt in the future to fund our operations, clinical trials, or commercialization efforts. Our ability to meet our current and future debt service obligations will depend on our future financial performance, which is subject to operational, regulatory, and market risks. If we are unable to generate sufficient cash flow or obtain additional financing on acceptable terms, we may default on our obligations. A default could result in acceleration of our indebtedness, restrict our access to additional capital, or require us to significantly curtail our operations. In addition, any debt instruments we enter into may contain restrictive covenants that limit our ability to operate our business freely.

 ***We have granted our existing lender certain rights of first offer and other preferential rights, which could limit our flexibility in future financing or strategic transactions and may discourage third-party investors or acquirers.***

We have entered into an agreement with an existing lender that provides such lender with certain preferential rights, including a right of first offer with respect to future equity or debt financings and/or other strategic transactions. The right of first offer remains in effect until two years after the repayment in full of the loan, or November 6, 2028. These rights may require us to first offer participation to the lender before pursuing opportunities with other third parties. As a result, our ability to raise capital or pursue other strategic alternatives could be delayed or limited. In addition, these rights may discourage other potential investors, lenders, or acquirers from engaging in transactions with us if they perceive that the existing lender has a blocking or preferential position. Any such limitations could adversely affect our ability to raise capital on favorable terms, pursue growth opportunities, or respond to changing business conditions.

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#### CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
We make forward-looking statements in this prospectus. In some cases, you can identify these statements by forward-looking words such as "may," "might," "should," "would," "could," "expect," "plan," "anticipate," "intend," "believe," "estimate," "predict," "potential" or "continue," and the negative of these terms and other comparable terminology. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business.

The forward-looking statements in this prospectus are only predictions. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our business, financial condition and results of operations. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. We believe that these factors include, but are not limited to the factors set forth under "Risk Factors." Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on these forward-looking statements as predictions of future events. The events and circumstances reflected in our forward-looking statements may not be achieved or occur and actual results could differ materially from those projected in the forward-looking statements.

In addition, statements that "we believe" and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based upon information available to us as of the date of this prospectus, and while we believe such information forms a reasonable basis for such statements, such information may be limited or incomplete, and our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information.

Forward-looking statements contained in this prospectus include, but are not limited to, statements about:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to hire and retain qualified personnel, including senior management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to continue as a going concern;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our reliance on our name, reputation and product quality;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to adequately address increased demands that may be placed on our management, operational and production capabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the effectiveness of our sales and marketing activities and investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to obtain regulatory approvals necessary to distribute our products in the United States and other new markets, or to distribute additional products we develop in the future;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the rate and degree of market acceptance of our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the availability of reimbursement for our products;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • estimates of our total addressable markets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the timing or likelihood of regulatory filings and approvals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our expectations regarding the use of proceeds in this offering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the progress, timing, costs and results of our clinical trials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our growth plans, and our ability to successfully execute our growth strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • quarterly and seasonal fluctuations in our operating results;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our success in retaining or recruiting, or changes required in, our officers, key employees or directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to protect our patents, trademarks and other intellectual property rights;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to comply with laws and regulations affecting our business;

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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; • changes and developments relating to our regulatory landscape;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • claims, demands and lawsuits to which we are, and may in the future, be subject and the risk that our insurance or indemnities coverage may not be sufficient;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to operate, update or implement our IT systems;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to implement additional finance and accounting systems, procedures and controls in order to satisfy public company reporting requirements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our ability to obtain additional financing when and if needed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the potential liquidity and trading of our common stock; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the future trading prices of our common stock and the impact of securities analysts' reports on these prices.

These statements are inherently uncertain and investors are cautioned not to unduly rely upon these statements. You should read this prospectus and the documents that we reference in this prospectus and have filed as exhibits to the registration statement of which this prospectus forms a part with the understanding that our actual future results, levels of activity, performance and achievements may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements.

These forward-looking statements speak only as of the date of this prospectus. Except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements contained in this prospectus after we distribute this prospectus, whether as a result of any new information, future events or otherwise.

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#### USE OF PROCEEDS
We estimate that the net proceeds to us from our issuance and sale of common stock in this offering will be approximately $[12,960,000] million (or approximately $[14,880,000] million if the underwriters exercise their over-allotment option in full), based upon the assumed initial public offering price of $[5.00] per share of common stock, after deducting underwriting discounts and commissions, and after estimated offering expenses payable by us.

The principal purposes of this offering are to provide capital to finance clinical development, particularly for stroke and migraine indications, working capital, and other general corporate purposes. The Company's management will retain broad discretion over the allocation of the proceeds from this offering.

The Company intends to use a significant portion of the net proceeds from this offering to fund its clinical development programs, with a primary focus on advancing its stroke and migraine indications. Of the net proceeds, the Company expects to allocate approximately $7.2 million toward clinical trial activities related to its stroke program, including payments to contract research organizations and direct internal costs associated with trial execution, patient enrollment, monitoring, and related regulatory and operational activities. In addition, the Company expects to allocate approximately $2.0 million toward costs associated with advancing its migraine indication, including activities related to its investigational device exemption program.

The Company believes that the proceeds allocated to these clinical programs will be sufficient to support ongoing clinical trial activities and to advance these programs through key development milestones. The Company expects that the net proceeds from this offering will be sufficient to complete the clinical trial for its stroke indications through full regulatory approval. However, the Company does not believe that the net proceeds from this offering alone will be sufficient to complete a U.S. trial for migraine indications through full regulatory approval. As a result, the Company may need to raise additional capital to complete later-stage clinical trials or subsequent phases of development.

The Company also intends to use a portion of the net proceeds to support commercialization and operational growth. Specifically, the Company expects to allocate approximately $1.5 million to $2.0 million toward sales and marketing development activities, including building commercial infrastructure and expanding market awareness, and approximately $1.2 million toward equipment purchases to support production capabilities and research and development efforts. The remaining net proceeds, estimated to range from approximately $1.1 million to $2.5 million, will be used for general working capital and other general corporate purposes.

The Company expects that the funds raised in this offering, together with anticipated revenues from operations, will be sufficient to enable the Company to pursue its business objectives. There can be no assurance, however, that the Company will be able to maintain its development schedule or operating plan, or that the Company's anticipated cash needs will prove to be accurate. If current assumptions are not accurate, or other unforeseen conditions affecting the Company's business arise, there could be material changes to the Company's plan and the Company could find it advisable to allocate the offering proceeds in a manner different from that described above or to seek additional financing sooner than currently contemplated. No assurance can be made that any additional financing that may be required by the Company would be available from any source at all or on terms favorable or acceptable to the Company. See "Risk Factors — *We may require additional capital to pursue our business objectives. If such capital is not available to us, our business, financial condition and results of operations may be materially and adversely affected.*"

Assuming no exercise of the underwriters' over-allotment option, each $0.50 increase (decrease) in the assumed initial public offering price of $[5.00] per share would increase (decrease) the net proceeds to us from this offering by approximately $[ ], assuming the number of shares offered, as set forth on the cover page of this prospectus, remains the same, and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us. Similarly, a 250,000 increase (decrease) in the number of shares offered in this offering would increase (decrease) the net proceeds to us from this offering by approximately $[ ], assuming that the price per share for the offering remains at $[ ] and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

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#### DIVIDEND POLICY
We have not, since the date of our incorporation, declared or paid any dividends or other distributions on our common stock, and do not currently have a policy with respect to the payment of dividends or other distributions. We do not currently pay dividends and do not intend to pay dividends in the foreseeable future. The declaration and payment of any dividends in the future is at the discretion of our board of directors and will depend on numerous factors, including compliance with applicable laws, financial performance, working capital requirements of the Company and our subsidiaries, as applicable and such other factors as our directors consider appropriate.

Accordingly, you may need to sell your shares of our common stock to realize a return on your investment, and you may not be able to sell your shares at or above the price you paid for them. See "Risk Factors — Risks Related to this Offering."

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#### CAPITALIZATION
The following table sets forth our cash position and capitalization as of September 30, 2025:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • on an actual basis;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • on a pro forma basis after giving effect to the Series A Conversion described under "Series A Preferred Stock Conversion;" and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • on a pro forma as adjusted basis to give effect to the issuance and sale of an assumed 3,000,000 shares in this offering at an assumed initial public offering price of $5.00 per share, after deducting estimated underwriting discounts and estimated offering expenses payable by us, and the application of the net proceeds therefrom as described under "Use of Proceeds."

The information discussed below is illustrative only, and our cash and cash equivalents and capitalization following the consummation of this offering will adjust based on the actual initial public offering price and other terms of this offering determined at pricing. You should read this information in conjunction with our consolidated financial statements and the related notes included elsewhere in this prospectus, the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section, and other financial information contained in this prospectus.

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| | | | |
|:---|:---|:---|:---|
| | **Actual**  | **Pro Forma <br> for the Series A <br> Conversion**  | **Pro Forma as <br> Adjusted for <br> the Series A <br> Conversion <br> and Offering**  |
| **Cash**  | $0 | $0 | $13010000 |
| **Total Debt**  | 1220753 | 1220753 | 1220753 |
| **Stockholders' Equity (Deficit):** |  |  |  |
|  Series A Preferred Stock, par value $0.01; 4,000,000 shares authorized; 876,000 shares issued and outstanding, actual; no shares issued and outstanding, pro forma and pro forma as adjusted  | 8760 |  |  |
|  Common Stock, par value $.01 par value; 10,000,000 shares authorized, 5,867,425 shares issued and outstanding, actual; 6,743,425 shares issued and outstanding, pro forma; shares issued and outstanding, pro forma as adjusted  | 58674 | 67434 | 97434 |
| Additional paid-in-capital  | 5077731 | 5077731 | 18057731 |
| Accumulated deficit  | (6448446) | (6448446) | (6448446) |
| Total Stockholders' Equity (Deficit)  | $(1303280) | $(1303280) | $11706720 |
| Total Capitalization  | $(82527) | $(82527) | $12927473 |

---

A $0.50 increase (decrease) in the assumed initial public offering price of $5.00 per share would increase (decrease) each of additional paid-in capital, total stockholders' equity and total capitalization by approximately $1.5 million, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us. We may also increase or decrease the number of shares we are offering. An increase (decrease) of 250,000 shares offered by us at an assumed offering price of $5.00 per share would increase (decrease) each of additional paid-in capital, total stockholders' equity, and total capitalization by approximately $1.25 million, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

The number of shares of our common stock to be outstanding after this offering, pro forma and pro forma as adjusted, in the table above is based on (i) 5,867,425 shares of our common stock outstanding as of September 30, 2025, (ii) the conversion of all outstanding shares of Series A Preferred Stock into 876,000 shares of common stock in connection with closing of the offering, and (iii) 3,000,000 new shares of common stock issued in the offering. The number of shares of common stock that will be outstanding after

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this offering excludes: (i) 276,000 shares underlying warrants to be issued to the underwriter in connection with this offering, (ii) an assumed 450,000 shares subject to the underwriter overallotment, (iii) 70,000 shares of common stock issuable upon the conversion of the aggregate principal amount underlying outstanding convertible promissory notes, (iv) 450,643 shares of common stock reserved for issuance and 463,000 stock options issued and outstanding under the Encore Medical, Inc., 2018 Stock Incentive Plan, and (v) 542,080 shares of our common stock issuable upon the exercise of issued and outstanding warrants.

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#### SERIES A PREFERRED STOCK CONVERSION
Immediately prior to the closing of this offering, pursuant to a letter agreement, dated December [ ], 2025, holders our Series A Preferred Stock have agreed to convert all of their outstanding shares of Series A Preferred Stock into shares of our common stock (the "Series A Conversion") at a conversion price equal to the initial public offering price per share of common stock, prior to deduction of underwriting discounts and commissions. As a result of the Series A Conversion, all rights, preferences, and privileges associated with the Series A Preferred Stock, including board representation rights, liquidation preferences, anti-dilution adjustments, and preemptive rights, will terminate in accordance with the terms of the Series A Preferred Stock. No additional consideration is required to effect the Series A Conversion. The Series A Conversion will occur on a one-time basis in connection with this offering and will be effective immediately prior to closing. The number of shares of common stock to be outstanding immediately after this offering gives effect to the Series A Conversion.

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#### DILUTION
If you invest in this offering, your ownership interest will be diluted to the extent that the initial public offering price exceeds net tangible book value per share of our common stock immediately following this offering. Dilution results from the fact that the initial public offering price per share of common stock is substantially in excess of the net tangible book value per share attributable to the existing shareholders for our presently outstanding common stock. Our net tangible book value per share represents the amount of our total tangible assets less total liabilities, divided by the number of shares of common stock issued and outstanding.

As of September 30, 2025, our historical net tangible book deficit was $1,303,280, or $0.22 per share of our common stock. Our historical net tangible book deficit is the amount of our total tangible assets less our total liabilities. Our historical net tangible book deficit per share represents historical net tangible book deficit divided by the aggregate number of shares of our common stock outstanding as of September 30, 2025.

Our pro forma net tangible book deficit as of September 30, 2025, was $1,303,280, or $0.19 per share. Pro forma net tangible book deficit per share represents total tangible assets, less total liabilities, divided by the total aggregate number of shares of our common stock outstanding as of September 30, 2025, after giving effect to the Series A Conversion, which will occur immediately prior to the completion of this offering, as if it had occurred as of September 30, 2025.

After giving further effect to the issuance and sale by us of an assumed 3,000,000 shares of our common stock in this offering at the assumed initial public offering price of $5.00 per share and after deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us, our pro forma as adjusted net tangible book value as of September 30, 2025 would have been approximately $11,706,720, or $1.20 per share. This represents an immediate increase in pro forma net tangible book value to existing stockholders of $1.42 per share and an immediate dilution in pro forma net tangible book value to new investors of $(3.80) per share. Dilution per share represents the difference between the price per share to be paid by new investors for the shares of our common stock sold in this offering and the pro forma as adjusted net tangible book value per share immediately after this offering.

The following table illustrates this dilution on a per share basis:

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| | |
|:---|:---|
| Assumed Initial public offering price per share  | $5.00 |
| &nbsp;&nbsp;&nbsp; Historical net tangible book value per share as of September 30, 2025  | $(0.22) |
| &nbsp;&nbsp;&nbsp; Increase in pro forma net tangible book value per share to new investors  | $1.42 |
| Pro forma as adjusted net tangible book value per share after giving effect to this offering  | $1.20 |
| Dilution per share to new investors in this offering  | $(3.80) |

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The dilution information discussed above is illustrative only and may change based on the actual initial public offering price, the number of shares we sell, and other terms of this offering that will be determined at pricing.

If the underwriters exercise in full their option to purchase up to an assumed 450,000 additional shares of common stock, the pro forma as adjusted net tangible book value (deficit) per share of our common stock after this offering would be $1.37 per share, and the dilution per share to investors participating in this offering would be $(3.63) per share, assuming the assumed initial public offering price of $5.00 per share.

A $0.50 change in the assumed initial public offering price of $5.00 per share would change our pro forma as adjusted net tangible book value per share after the offering by $(0.15) and change the dilution to new investors in this offering by $0.15 per share, assuming the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same, after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us.

The following table summarizes, as of September 30, 2025, on a pro forma as adjusted basis the number of shares of our common stock, the total consideration and the average price per share (i) paid to us by existing stockholders and (ii) to be paid by new investors acquiring our common stock in this offering

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at the assumed initial public offering price of $5.00 per share before deducting estimated underwriting discounts and commissions and estimated offering expenses payable by us. As the table below shows, investors participating in this offering will pay an average price per share substantially higher than our existing stockholders paid.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Shares Purchased**  | **Shares Purchased**  | **Total Consideration**  | **Total Consideration**  | **Average Price <br> Per Share**  |
| | **Number**  | **Percent**  | **Amount**  | **Percent**  | **Average Price <br> Per Share**  |
| Existing shareholders<sup>(1)</sup>  | 6743425 | 69.2% | $5145165 | 28.3% | $0.76 |
| New investors  | 3000000 | 30.8% | $13010000 | 71.7% | $4.34 |
| **Total**  | 9743425 | 100.0% | $18155165 | 100.0% | $1.86 |

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(1) Existing shareholders' shares purchased, and total consideration includes 876,000 shares of common stock issuable upon conversion of 876,000 outstanding shares of Series A Preferred Stock in connection with the closing of the offering, which shares of Series A Preferred Stock were initially sold by us at a purchase price of $5.00 per share.

Except as otherwise indicated, the discussion and the tables above assume no exercise of the underwriters' over-allotment option to purchase additional shares of common stock from us. If the underwriters exercise their over-allotment option to purchase additional shares of common stock from us in full, the percentage of our common stock held by existing shareholders would be 66.2%, and the percentage of our common stock held by new investors would be 33.8%.

A $0.50 increase in the assumed initial public offering price of $5.00 per share would increase the total consideration paid by new investors by $1.5 million and increase the percent of total consideration paid by new investors from 71.7% to 73.8%, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the estimated underwriting discount. Similarly, a $0.50 decrease in the assumed initial public offering price of $5.00 per share would decrease the total consideration paid by new investors by $1.5 million and decrease the percent of total consideration paid by new investors from 71.7% to 69.1%, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the estimated underwriting discount.

The number of shares to be outstanding after this offering is based on (i) 5,867,425 shares of our common stock outstanding as of September 30, 2025, (ii) the conversion of all outstanding shares of Series A Preferred Stock into 876,000 shares of common stock in connection with closing of the offering, and (iii) 3,000,000 new shares of common stock issued in the offering. The number of shares of common stock that will be outstanding after this offering excludes: (i) 240,000 shares underlying warrants to be issued to the underwriter in connection with this offering; (ii) an assumed 450,000 shares subject to the underwriters' overallotment option; (iii) 70,000 shares of common stock issuable upon the conversion of the aggregate principal amount underlying outstanding convertible promissory notes; (iv) 450,643 shares of common stock reserved for issuance and 463,000 stock options issued and outstanding under the Encore Medical, Inc., 2018 Stock Incentive Plan; and (v) 542,080 shares of our common stock issuable upon the exercise of issued and outstanding warrants.

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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 in conjunction with the financial statements and related notes to those statements included elsewhere in this prospectus. In addition to historical financial information, the following discussion and analysis contains forward-looking statements that involve risks, uncertainties, and assumptions. See "Cautionary Note Regarding Forward-looking Statements" included elsewhere in this prospectus. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including those discussed under "Risk Factors" and elsewhere in this prospectus.

#### Overview
We develop, manufacture, and market septal occlusion products, which are small, implantable devices delivered through a catheter inserted into a major blood vessel to permanently repair certain cardiac defects. To date, our products have been implanted in approximately 35,000 patients outside the United States. See "Page 49 — Marketing, Sales & Distribution." Procedures are performed in a cardiac catheterization lab and reduce the need for open-heart surgery or a lifetime of drug therapy, which are currently the alternative methods of treating these defects.

We obtained CE Mark approval for our products, which is a prerequisite for the general sale of medical devices in the European Union and are currently marketing and selling septal occlusion devices for the closure of certain cardiac defects in countries outside the United States.

Currently, we do not have regulatory approval to sell products in the United States. However, we have completed significant steps required to obtain Class III market clearance for its patent foramen ovale ("PFO") septal occlusion device through the FDA investigational device exemptions ("IDE")/premarket approval ("PMA") application process. Such FDA approval will allow us to market out products throughout the United States.

#### Components of our Results of Operations

#### Net sales
Substantially all of our sales are generated from the sale of medical devices. We recognize revenue and transfer control to the customer when shipment of the medical device occurs. Medical devices are sold primarily through a direct sales force and through distributors.

#### Cost of goods sold and gross profit
Cost of goods sold consists of materials, personnel and related expenses, primarily related to our production team. Additional costs include allocated overhead, which includes facilities expenses, equipment and depreciation. We expect the cost of goods sold to increase as we hire additional personnel in our production team to support our increasing manufacturing volume.

We calculate gross profit percent as gross profit divided by net sales. Our gross profit percentage has been and will continue to be affected by a variety of factors, primarily by our production team costs, the timing of hiring new production team members and training them to full productivity, the timing of our acquisition of new customers and pricing. Although, we expect our gross profit percentage to fluctuate from period to period, based upon the factors described above, we believe our gross profit percentage will increase over the long term as we leverage the increase in sales.

#### Operating expenses
 *Selling, general and administrative* 

Selling, general and administrative expenses consist of personnel and related expenses, related to selling and marketing, finance, information technology and human resources functions. Other expenses include sales

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commission, marketing initiatives, professional service fees (including legal, audit, accounting and tax fees), travel expenses, conferences, facilities expenses and other miscellaneous expenses.

We expect that our selling, general and administrative expenses will increase in the future as a result of expanding our operations, including hiring personnel, to both drive and support anticipated growth as well as various incremental costs associated with operating as a public company. We expect that our costs will increase related to legal, audit, accounting fees, consulting fees, regulatory and tax-related services associated with maintaining compliance with stock exchange listing and SEC requirements, director and officer insurance costs, investor and public relations costs and other expenses that we did not incur as a private company. However, we expect selling, general and administrative expenses to decrease as a percentage of revenue primarily as, and to the extent, our revenue grows.

 *Stock compensation expense* 

Stock compensation expense is related to stock options issued under the 2018 Encore Medical, Inc. Equity Stock Incentive Plan. We record compensation expense for stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton option pricing model. The estimated grant date fair value is expensed over the requisite grant's service period.

 *Clinical trial expense* 

Clinical trial expenses relate to the initial costs of our clinical trial. Our clinical trial expenses have been limited due to the Company's limited available funds. We expect clinical trial expenses to increase significantly after the Company completes this offering.

 *Regulatory expense* 

Regulatory expenses are incurred to meet numerous regulatory requirements in the numerous countries in which we sell our products. We expect our regulatory expenses to increase as we expand into additional countries.

 *Interest expense* 

Interest expense consists of interest expense on our short-term debt and the Loan Agreement with Merit Medical Systems, Inc.

 *Provision for income taxes* 

Provision for income taxes consists of income tax expense related to U.S. federal, state and foreign jurisdictions. To date, we have not recorded any income tax expense. We have net deferred tax assets for U.S. federal income taxes for which we provide a full valuation allowance. Due to our history of net operating losses since inception, we expect to maintain a full valuation allowance in the foreseeable future due to uncertainties regarding our ability to realize these assets.

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#### Results of Operations

#### Comparison of Nine Months Ended September 30, 2025 and 2024
The following table summarizes our results of operations for the nine months ended September 30, 2025 and 2024:

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| | | |
|:---|:---|:---|
| | **For the Nine Months Ended <br> September 30,**  | **For the Nine Months Ended <br> September 30,**  |
| | **2025**  | **2024**  |
|  | **(unaudited)**  | **(unaudited)**  |
| **Net Sales**  | $1290395 | $1543721 |
| **Cost of goods sold**  | 873080 | 1022170 |
| **Gross profit**  | 417315 | 521551 |
| **Operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp; Selling, general and administrative  | 778912 | 755062 |
| &nbsp;&nbsp;&nbsp; Stock compensation expense  | 12281 | 690926 |
| &nbsp;&nbsp;&nbsp; Clinical trial expense  | 62729 | 128088 |
| &nbsp;&nbsp;&nbsp; Regulatory expense  | 57974 | 58267 |
| **Total operating expenses**  | 911896 | 1632343 |
| **Operating loss**  | (494581) | (1110792) |
| Non-operating expense |  |  |
| &nbsp;&nbsp;&nbsp; Interest expense  | 62985 | 62825 |
| &nbsp;&nbsp;&nbsp; Total non-operating expense  | 62985 | 62825 |
| **Net loss before income taxes**  | (557476) | (1173617) |
| &nbsp;&nbsp;&nbsp; Income taxes  |  |  |
| **Net Loss**  | $(557476) | $(1173617) |

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#### Revenue:
Net sales for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, decreased $253,326 or 16.4%, to $1,290,395 compared to $1,543,721. This decrease was driven by the Company's focus on its IPO fundraising activities and limited cash resources to fulfill orders.

#### Cost of Goods Sold:
Cost of goods sold decreased $149,090, or 14.6%, to $873,080 for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024, due to decreased sales, decreases in raw material prices and more efficient production.

#### Gross Profit:
Gross profit decreased to $417,315 during the nine months ended September 30, 2025, compared to the nine months September 30, 2024. Gross profit percentage was 32.3% for the nine months ended September 30, 2025, down from 33.8% for the nine months ending September 30, 2024. The decrease in gross profit in 2025 is largely a result of decreased sales.

#### Selling, General and Administrative Expenses:
Selling, general and administrative expenses did not change significantly for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

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#### Stock Compensation Expense:
Stock compensation expense decreased $678,645 to $12,281 for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024 as a result of granting 360,000 options that vested immediately during the nine months ended September 30, 2024.

#### Clinical Trial Expense:
Clinical trial expenses decreased $65,359, or 51.0%, to $62,729 for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024. Clinical trial expenses decreased due to limited resources to fund the clinical trial.

#### Regulatory Expense:
Regulatory expenses did not change significantly for the nine months ended September 30, 2025, compared to the nine months ended September 30, 2024.

#### Comparison of Years Ended December 31, 2024 and 2023
The following table summarizes our results of operations for the years ended December 31, 2024 and 2023:

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| | | |
|:---|:---|:---|
| | **For the Year Ended <br> December 31,**  | **For the Year Ended <br> December 31,**  |
| | **2024**  | **2023**  |
| **Net Sales**  | $2134528 | $1434424 |
| **Cost of goods sold**  | 1361077 | 912078 |
| **Gross profit**  | 773451 | 522346 |
| **Operating expenses** |  |  |
| &nbsp;&nbsp;&nbsp; Selling, general and administrative  | 1555653 | 1211152 |
| &nbsp;&nbsp;&nbsp; Stock compensation expense  | 696101 | 7936 |
| &nbsp;&nbsp;&nbsp; Clinical trial expense  | 142672 | 550570 |
| &nbsp;&nbsp;&nbsp; Regulatory expense  | 145297 | 124421 |
| **Total operating expenses**  | 2539723 | 1894079 |
| **Operating loss**  | (1766272) | (1371733) |
| Non-operating expense |  |  |
| &nbsp;&nbsp;&nbsp; Interest expense  | 79679 | 15124 |
| &nbsp;&nbsp;&nbsp; Total non-operating expense  | 79679 | 15124 |
| **Net loss before income taxes**  | (1845951) | (1386857) |
| &nbsp;&nbsp;&nbsp; Income taxes  |  |  |
| **Net Loss**  | $(1845951) | $(1386857) |

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#### Revenue:
Net sales for the fiscal year ended December 31, 2024, compared to the fiscal year ended December 31, 2023, increased $700,104 or 48.8%, to $2,134,528, compared to $1,434,424. This increase was primarily driven by an increase in sales and marketing efforts and the addition of new markets outside the U.S., all of which drove increased customer usage and increased our customer base.

#### Cost of Goods Sold:
Cost of goods sold increased $448,999, or 49.2%, to $1,361,077 for the fiscal year ended December 31, 2024, compared to the fiscal year ended December 31, 2023, with the increase resulting primarily from the increase in sales.

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#### Gross Profit:
Gross profit increased to $773,451 during the fiscal year ended December 31, 2024, compared to the fiscal year ended December 31, 2023. Gross profit percentage was 36.2% for the fiscal year ended December 31, 2024, and 36.4% for fiscal year ending December 31, 2023. The increase in gross profit in 2024 is a result of improved manufacturing processes and volume increases.

#### Selling, General and Administrative Expenses:
Selling, general, and administrative expenses increased $344,501, or 28.4%, to $1,555,653 for the fiscal year ended December 31, 2024, compared to the fiscal year ended December 31, 2023. Selling, general, and administrative expenses increased due to a $475,538 write-off classified as a bad debt expense related to our prior affiliate and production arrangement with them.

#### Stock Compensation Expense:
Stock compensation expense increased $688,165 to $696,101 for the fiscal year ended December 31, 2024, compared to the fiscal year ended December 31, 2023. Stock compensation expense increased due to granting 360,000 options that vested immediately upon grant.

#### Clinical Trial Expense:
Clinical trial expenses decreased by $407,898, or 74.1%, to $142,672 for the fiscal year ended December 31, 2024, compared to the fiscal year ended December 31, 2023. Clinical trial expenses decreased due to a lack of resources to fund the clinical trial.

#### Regulatory Expense:
Regulatory expenses increased by $20,876, or 16.8%, to $145,297 for the fiscal year ended December 31, 2024, compared to the fiscal year ended December 31, 2023. Regulatory expenses increased due to increased regulatory requirements associated with our transition to the new European Medical Device Regulations (MDR).

#### Cash flows

#### For the Years Ended December 31, 2024 and 2023
The following table summarizes our cash flows for the periods presented:

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| | | |
|:---|:---|:---|
| | **For the Year Ended <br> December 31,**  | **For the Year Ended <br> December 31,**  |
| | **2024**  | **2023**  |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| Net loss  | $(1845951) | $(1386857) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation  | 6157 | 6161 |
| &nbsp;&nbsp;&nbsp; Amortization of debt discount  | 4375 | 625 |
| &nbsp;&nbsp;&nbsp; Stock based compensation  | 696101 | 7936 |
| &nbsp;&nbsp;&nbsp; Non-cash lease expense  | 4935 | 13832 |
| &nbsp;&nbsp;&nbsp; Accounts receivable  | (349472) |  |
| &nbsp;&nbsp;&nbsp; Accounts receivable – related party  | 381727 | 18171 |
| &nbsp;&nbsp;&nbsp; Inventory  | 92562 | (466160) |
| &nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets  | (15521) | (16445) |
| &nbsp;&nbsp;&nbsp; Accounts payable  | 328971 | 46470 |

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| | | |
|:---|:---|:---|
| | **For the Year Ended <br> December 31,**  | **For the Year Ended <br> December 31,**  |
| | **2024**  | **2023**  |
| &nbsp;&nbsp;&nbsp; Accrued interest  | 75738 | 16658 |
| &nbsp;&nbsp;&nbsp; Accrued Expenses  | 158108 | 99157 |
| Net Cash Used in Operating Activities  | (462269) | (1660462) |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp; Purchases of property and equipment  |  | (12088) |
| Net Cash Used in Investing Activities  |  | (12088) |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp; Proceeds from short term debt  |  | 50000 |
| &nbsp;&nbsp;&nbsp; Deferred financing costs  |  | (5000) |
| &nbsp;&nbsp;&nbsp; Proceeds from long term debt  |  | 1000000 |
| &nbsp;&nbsp;&nbsp; Proceeds from sale of common stock  | 403826 |  |
| &nbsp;&nbsp;&nbsp; Proceeds from issuance of Series A Preferred Stock  |  |  |
| Net Cash Provided by Financing Activities  | 403826 | 1045000 |
| Net Increase in Cash  | (58443) | (627550) |
| Cash at Beginning of Period  | 305272 | 932821 |
| Cash at End of Period  | $246829 | $305272 |

---

Net cash used in operating activities was $462,269 and $1,660,462 for the fiscal years ended December 31, 2024, and 2023, respectively. Cash used in operating activities increased primarily because of increases in accounts payable and accrued expenses in 2024. In 2023, the Company began manufacturing its own product, resulting in a significant increase in inventory and a decrease in available cash.

Net cash used in investing activities was $0 and $12,088 for the fiscal years ended December 31, 2024, and 2023, respectively. Cash used in investing activities in 2023 period was used to purchase equipment.

Net cash provided by financing activities was $403,826 and $1,045,000 for the fiscal years ended December 31, 2024, and 2023, respectively. The cash provided by financing activities for the fiscal year ended December 31, 2024, was due to the sale of common stock. The cash provided by financing activities for the fiscal year ended December 31, 2023, as due to long and short-term borrowings.

#### For the Nine Months Ended September 30, 2025 and 2024
The following table summarizes our cash flows for the periods presented:

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| | | |
|:---|:---|:---|
| | **For the Nine Months Ended <br>September 30**  | **For the Nine Months Ended <br>September 30**  |
| | **2025**  | **2024**  |
|  | **(unaudited)**  | **(unaudited)**  |
| CASH FLOWS FROM OPERATING ACTIVITIES |  |  |
| Net loss  | $(557476) | $(1173617) |
| Adjustments to reconcile net loss to net cash used in operating activities: |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation  | 4634 | 4618 |
| &nbsp;&nbsp;&nbsp; Amortization of debt discount  |  | 3750 |
| &nbsp;&nbsp;&nbsp; Stock based compensation  | 12281 | 690926 |
| &nbsp;&nbsp;&nbsp; Non-cash lease expense  | 1459 | 3901 |
| &nbsp;&nbsp;&nbsp; Accounts receivable  | 19247 | (258264) |
| &nbsp;&nbsp;&nbsp; Accounts receivable – related party  |  | (130270) |

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| | | |
|:---|:---|:---|
| | **For the Nine Months Ended <br> September 30**  | **For the Nine Months Ended <br> September 30**  |
| | **2025**  | **2024**  |
|  | **(unaudited)**  | **(unaudited)**  |
| &nbsp;&nbsp;&nbsp; Inventory  | (186098) | 44340 |
| &nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets  | 22709 | 14027 |
| &nbsp;&nbsp;&nbsp; Accounts payable  | 137825 | 146032 |
| &nbsp;&nbsp;&nbsp; Accounts payable – related party  | 65499 |  |
| &nbsp;&nbsp;&nbsp; Accrued interest  | 60232 | 56301 |
| &nbsp;&nbsp;&nbsp; Accrued Expenses  | 2695 | 213507 |
| Net Cash Used in Operating Activities  | (416993) | (384749) |
| CASH FLOWS FROM INVESTING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp; Purchases of property and equipment  | (500) |  |
| Net Cash Used in Investing Activities  | (500) |  |
| CASH FLOWS FROM FINANCING ACTIVITIES |  |  |
| &nbsp;&nbsp;&nbsp; Proceeds from short term debt  | 170753 |  |
| &nbsp;&nbsp;&nbsp; Deferred financing costs  |  |  |
| &nbsp;&nbsp;&nbsp; Proceeds from long term debt  |  |  |
| &nbsp;&nbsp;&nbsp; Proceeds from sale of common stock  |  | 279970 |
| &nbsp;&nbsp;&nbsp; Proceeds from issuance of Series A Preferred Stock  |  |  |
| Net Cash Provided by Financing Activities  | 170753 | 279970 |
| Net Increase in Cash  | (246829) | (104779) |
| Cash at Beginning of Period  | 246829 | 305272 |
| Cash at End of Period  | $0 | $200493 |
|  <u>SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES</u>  |  |  |
| Exercise of stock options upon settlement of accrued expenses  | $150000 | $— |

---

#### Nine Months Ended September 30, 2025, compared to Nine Months Ended September 30, 2024.
Net cash used in operating activities was ($416,993) and $(384,749) for the nine months ended September 30, 2025, and 2024, respectively. Cash used in operating activities for the nine months ended September 30, 2025 increased primarily because of the net loss and an increase in inventory. Cash used in operating activities for the nine months ended September 30, 2024 increased primarily because of the net loss, an increase in accounts receivable which was partially offset by an increase in accounts payable and accrued expenses.

Net cash used in investing activities was $500 and $0 for the nine months ended September 30, 2025, and 2024, respectively. Cash used in investing activities in 2025 was related to the purchase of equipment.

Net cash provided by financing activities was $170,753 for the nine months ended September 30, 2025, compared to cash used in financing activities of $279,970 for the nine months ended September 30, 2024. The cash provided in the nine months ended September 30, 2025 was due to short term borrowing. The cash provided in the nine months ended September 30, 2024 was due to the sale of common stock.

#### Short-Term Debt
As of September 30, 2025, the Company's short-term debt consisted of a $50,000 unsecured promissory note with a board member, Chris Turnbull. The note, which was amended and restated on November 24, 2025, bears interest at 10% and matures on June 30, 2026, which date the parties may mutually elect to extend for an additional 6 months. In addition, in November and December 2025, the Company obtained

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additional funds in the form of unsecured promissory notes in the aggregate principal amount of $300,000 from a non-affiliated third party and from the Company's Chief Executive Officer, Joseph Marino. These notes also bear interest at 10% and mature on June 30, 2026, which date the parties may mutually elect to extend for an additional 6 months. All of the unsecured promissory notes were for working capital, include an origination fee of 20% and are convertible into shares of common stock of the Company at a conversion price of $5.00 per share at the option of the holder upon written notice at any time prior to repayment. (See "Related-Party Transactions").

On May 15, 2025, the Company obtained a $200,000 line of credit with Cardia, Inc. ("Cardia"), a related party. As of September 30, 2025, $170,753 was drawn against the line of credit. The line of credit bears interest at 6% and matures on May 15, 2026, and can be renewed for additional terms by mutual agreement of both parties.

#### Merit Financing Agreement
On November 6, 2023, the Company entered into a Loan Agreement (the "Loan Agreement") with Merit Medical Systems, Inc. ("Merit") under which Merit loaned the Company $1 million (the "Loan"). The Company is subject to customary covenants under the Loan Agreement, including covenants relating to the delivery of periodic financial statements, notices with respect to defaults and other material events, compliance with applicable law, and limitations on debt, liens, and certain dispositions. Interest accrues on the principal amount of the Loan at the rate of 7% per annum. The loan matures on November 6, 2026, at which time all principal and interest will be due and payable. The Company's obligations under the Loan are evidenced by a promissory note and are secured by a security interest in the assets of the Company.

The Company entered into a Right of First Offer Agreement in connection with the Loan under which the Company agreed to provide Merit with an offer notice relating to any bona fide intention to offer new securities to third parties and afford Merit the opportunity to purchase or otherwise acquire, at the price and on the terms specified in the offer notice, all or any portion of such new securities. Merit's right of first offer remains in effect until two years after the repayment in full of the Loan, or November 6, 2028. Merit has waived its right of first offer with respect to the shares being sold in this offering.

#### Liquidity and Capital Resources
We have commenced this offering primarily to finance our U.S. clinical trials for the stroke and migraine indications, and for working capital purposes. To date, we have primarily funded our operations with cash flow from the sale of our products outside of the U.S. and proceeds from sales of our Series A Preferred Stock and common stock and borrowings under short-term promissory notes and long- term loans. We have incurred ongoing losses and negative cash flows from operations, including a net loss of $557,566 for the nine months ended September 30, 2025, and a net loss of $1,845,951 during the year ended December 31, 2024. As of September 30, 2025, we had an accumulated deficit of approximately $6.4 million and negative equity of $1,303,280. Clinical trial expenses have decreased due to limited resources to fund the clinical trial, which is one of the primary reasons for completing this offering. We expect to incur losses in future periods as we continue to increase our expenses to complete our clinical trials and incur expenses associated with being a public company.

As of September 30, 2025, we had cash of $0, accounts receivable of $330,225, inventory of $559,695, and prepaid expenses of $17,856. As of September 30, 2025, current assets amounted to $907,775, and current liabilities were $1,306,653, resulting in a working capital deficit of $398,878 (working capital defined as current assets minus current liabilities). Our working capital as of September 30, 2025 on a pro forma basis after giving effect to the issuance of shares of common stock by us in this offering and the receipt of approximately $13.0 million in net proceeds from the sale of such shares, after deducting underwriting discounts and commissions and estimated offering expenses payable by us would be a surplus of approximately $13.0 million.

Following this offering, we intend to fund our operational cash requirements with net proceeds from the sale of our common stock in this offering, supplemented by cash flows from our operating activities.

We believe that our capital resources following this offering will be sufficient to support our operations for at least the next twelve months. We have based this estimate on our current assumptions, which may prove

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to be wrong, and we may exhaust our available capital resources sooner than we expect. Our ability to continue as a going concern will be determined by our ability to generate sufficient cash flow to sustain our operations and/or raise additional capital in the form of debt or equity financing.

We currently do not have any committed sources of additional capital. The forecast of cash resources is forward-looking information that involves risks and uncertainties, and the actual amount of our expenses could vary materially as a result of a number of factors. We have based our estimates on assumptions that may prove to be wrong, and our revenue could prove to be less and our expenses higher than we currently anticipate. Management does not know whether additional financing will be available and on terms favorable or acceptable to us when needed. If we are unable to generate sufficient cash flow to fund our operations and adequate additional funds are not available when required, management may need to curtail expenses or sales and marketing efforts, which would adversely affect our business prospects, or we may be unable to continue operations.

If we raise additional funds by issuing equity securities, our shareholders will experience dilution. If we raise additional capital through debt financing, we may be subject to covenants that restrict our operations including limitations on our ability to incur liens or additional debt, pay dividends, repurchase our common stock, make certain investments, and engage in certain merger, consolidation or asset sale transactions. Any debt financing or additional equity that we raise may contain terms that are not favorable to us or our stockholders.

#### Quantitative and Qualitative Disclosures about Market Risk
We are exposed to market risks in the ordinary course of our business. Market risk represents the risk of loss that may impact our financial position due to adverse changes in the financial market process and rates. Our market risk exposure is primarily the result of foreign currency exchange rates and their impact on our business conducted in foreign markets.

Our reporting currency is the U.S. dollar. Gains or losses due to transactions in foreign currencies are reflected in the consolidated statement of operations under the line-item other income (expense), net. We have not engaged in the hedging of foreign currency transactions to date, although we may choose to do so in the future.

#### Critical Accounting Estimates
Management uses estimates and assumptions in preparing these financial statements in accordance with accounting principles generally accepted in the United States of America. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses. Actual results could differ from those estimates.

Significant accounting policies are fully described in the footnotes to our audited financial statements, we believe that the following accounting policies and estimates are critical to our business operations and understanding of our financial results.

#### Revenue Recognition
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • The Company determines revenue recognition through the following steps:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Identification of the contract or contracts with a customer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Identification of performance obligations in the contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Determination of the transaction price

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Allocation of the transaction price to the performance obligations in the contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Recognition of revenue when or as the Company satisfies the performance obligations

Revenue is generated from the sale of medical devices. The Company recognizes revenue and transfers control to the customer when shipment of the device occurs. Shipping and handling activities are considered activities to fulfill the promise to transfer the products.

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Products are sold primarily through a direct sales force and through distributors. Terms of sale are generally consistent for both end-users and distributors, except that payment terms are generally net 30 days for end-users and net 60 days for distributors, with some exceptions. The Company does not maintain any post-shipping obligations to customers; no installation, calibration or testing of products is performed subsequent to shipping in order to render products operational. The Company expects to be entitled to the total consideration for the products ordered as product pricing is fixed, and there are no adjustments for a significant financing component as payment terms fall within one year. The Company excludes taxes assessed by governmental authorities on revenue-producing transactions from the measurement of the transaction price.

Costs associated with product sales include commission expenses. There are no royalty expenses. As revenue from product sales is recognized at a point in time, commission expenses are recognized as incurred. Commissions expenses are included in selling, general and administrative expenses in the statements of operations.

#### Material Customer Concentration
We derive a substantial portion of our revenues currently from a limited number of customers. As of December 31, 2024, four customers accounted for a significant percentage of our total accounts receivable reflected in our financial statements. As of September 30, 2025, one customer accounted for a significant percentage of our total accounts receivable reflected in our financial statements. These customers periodically maintain sizeable outstanding balances with us. While we have not experienced significant collection issues with these customers, our reliance on a limited number of customers could expose us to risks, including delays in payments or loss of a major customer, any of which could have a material adverse effect on our business, financial condition, and results of operations.

As of September 30, 2025, our total accounts receivable decreased by 5.5% (or $19,247) compared to December 31, 2024, primarily due to the timing of shipments and revenue recognition associated with several large orders from our key international customers. While these receivables represent a significant portion of our total assets, management monitors collections closely and believes these amounts are collectible in the ordinary course of business. Other components of our financial condition, including inventories and cash flows from operations, have remained consistent with our expectations based on operational plans, ongoing investment in clinical development and commercialization activities and our focus on our initial public offering.

We continue to actively monitor our liquidity and capital requirements to ensure sufficient resources to support operations, strategic initiatives, including our planned FDA clinical trials, and future plans.

#### Inventories
Inventories include raw materials, work in process and finished goods and are stated at the lower cost (first-in, first-out method) or net realizable value. The Company's industry is characterized by rapid product development and frequent new product introductions. Uncertain timing of regulatory approvals, variability in product launch strategies and variation in product sales all impact inventory reserves for excess, obsolete and expired products. An increase to inventory reserves results in a corresponding increase in cost of goods sold in the statement of operations. Inventories are written off against the reserve when they are physically disposed.

#### Income Taxes
The Company accounts for income taxes using the asset and liability method, as required by the accounting standard for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases along with operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities from a change in tax rates is recognized in the statements of operations in the period that includes the enactment date.

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The Company's estimate of the valuation allowance for deferred income tax assets requires significant estimates and judgments about future operating results. Deferred income tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more-likely-than-not that a deferred income tax asset will not be realized. Significant weight is given to evidence that can be objectively verified. The Company evaluates deferred income tax assets on an annual basis to determine if valuation allowances are required by considering all available evidence. Deferred income tax assets are realized by having sufficient future taxable income to allow the related tax benefits to reduce taxes otherwise payable. The sources of taxable income that may be available to realize the benefit of deferred income tax assets are future taxable income, future reversals of existing taxable temporary differences, taxable income in prior carryforward years and tax planning strategies that are both prudent and feasible. In evaluating the need for a valuation allowance, the existence of cumulative losses since inception is significant objectively-verifiable negative evidence that must be overcome by objectively-verifiable positive evidence to avoid the need for a valuation allowance. The Company's valuation allowance offsets all net deferred income tax assets as it is more-likely-than-not that the benefit of the deferred income tax assets will not be recognized in future periods. The Company has not reclassified income tax effects of the Tax Cuts and Jobs Act within accumulated other comprehensive (loss) income to accumulated deficit due to its full valuation allowance.

The Company recognizes the impact of an uncertain tax position in its financial statements if, in management's judgment, the position is more-likely-than-not sustainable upon audit based on the position's technical merits. This involves the identification of potential uncertain tax positions, the evaluation of applicable tax laws and an assessment of whether a liability for an uncertain tax position is necessary.

#### Stock-Based Compensation
The Company records compensation expense for stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton ("BSM") option-pricing model. The estimated grant date fair value is expensed over the requisite grant's service period as stock-based compensation expense. The Company uses historical data from comparable medical device companies, among other factors, to estimate the expected price volatility. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. The expected term of stock options represents the weighted-average period the stock options are expected to remain outstanding. The Company does not have sufficient historical exercise and post-vesting termination activity to provide accurate data for estimating the expected term of options and has opted to use the "simplified method," whereby the expected term equals the arithmetic average of the vesting term and the original contractual term of the option. The Company accounts for forfeitures as they occur.

#### Accounting Standards and Recent Accounting Pronouncements
See Note 2 (Summary of Significant Accounting Policies) to our audited financial statements for a discussion of recent accounting pronouncements.

#### Emerging Growth Company Status
Pursuant to the JOBS Act, a company constituting an "emerging growth company" is, among other things, entitled to rely upon certain reduced reporting requirements and is eligible to take advantage of an extended transition period to comply with new or revised accounting standards applicable to public companies. We are an emerging growth company and have elected to use this extended transition period for complying with new or revised accounting standards that have different effective dates for public and private companies until the earlier of the date we (i) are no longer an emerging growth company or (ii) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. Our financial statements may, therefore, not be comparable to those of other public companies that comply with such new or revised accounting standards.

#### Certain Relationships and Related Party Transactions
As an emerging growth company, we are permitted to rely on the scaled disclosure requirements of Item 404(d) of Regulation S-K. Accordingly, our disclosure of related-party transactions is limited to those transactions required to be disclosed pursuant to applicable accounting standards.

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#### Related-Party Transactions
Since January 1, 2023, we have engaged in transactions with entities affiliated with certain of our directors and executive officers. These transactions are described in Note 11 — Related-Party Transactions to our audited consolidated financial statements included elsewhere in this registration statement.

All related-party transactions were entered into on terms that management believes were no less favorable to us than those that could have been obtained from unaffiliated third parties under similar circumstances.

#### Director and Officer Insurance
We maintain a general liability insurance policy that covers certain liabilities of directors and officers of our corporation arising out of claims based on acts or omissions in their capacities as directors or officers. We may also enter into indemnification agreements with our directors and officers, which would include, among other things, the right to have expenses advanced in connection with indemnifiable proceedings.

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#### BUSINESS

#### Overview
We develop, manufacture, and market septal occlusion devices for the repair of certain cardiac defects. To date, our products have been implanted in approximately 35,000 patients outside the United States.

Encore Medical, Inc. ("Encore" or the "Company") was formed in 2017 as a wholly owned subsidiary of Cardia, Inc. ("Cardia") and operated Cardia's septal occlusion business until October 1, 2020, when it was spun off in a tax-free distribution to Cardia's shareholders under Section 355 of the Internal Revenue Code of 1986, as amended (the "Spin Out").

As part of the Spin Out, Encore received and now wholly owns the assets of Cardia's septal occlusion business, including the complete PFO and ASD product portfolios, associated patents, regulatory approvals, revenue streams, manufacturing operations, related R&D projects, proprietary knowledge, and supporting infrastructure. Cardia had previously obtained ISO certification and held intellectual property and regulatory approvals for these products. As part of the separation, these rights, certifications, and approvals were either transferred to Encore or separately obtained by Encore, such that Encore now independently owns the relevant intellectual property and maintains its own ISO and regulatory approvals.

Encore continues to build on this legacy as an independent company focused on the further development, commercialization, and global expansion of its septal occlusion devices.

#### Our Products
Septal occlusion devices are small, implantable devices that are positioned and delivered through a catheter inserted into a major blood vessel (typically via femoral venous access) to repair certain cardiac defects in both adults and children. These closure devices are capable of providing an effective, nonsurgical method of correcting a variety of cardiac defects. Our primary closure device is designed to correct a cardiac defect, generally diagnosed in adulthood, known as a patent foramen ovale ("PFO"). The PFO defect is an abnormal passage or flap-like hole between the atrial chambers of the heart that can enable embolic material (clots) to travel from the right to left chambers and potentially cause a stroke. We also currently market and sell septal occlusion devices for the transcatheter closure of atrial septal defects (ASD). The ASD defect is an opening in the atrial septum that divides the right and left atria. This defect can be corrected in both children and adults but is predominantly corrected during childhood.

Examples of our products for treating PFO are depicted below.

![[MISSING IMAGE: ph_pfoproduct01-4clr.jpg]](ph_pfoproduct01-4clr.jpg)

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![[MISSING IMAGE: ph_pfoproduct02-4clr.jpg]](ph_pfoproduct02-4clr.jpg)

![[MISSING IMAGE: ph_pfoproduct03-4clr.jpg]](ph_pfoproduct03-4clr.jpg)

Key design features of the Company's products include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • **Double-disc architecture**: Each of our devices typically has two opposing discs connected by a central bridge or waist. This configuration allows the device to span and seal the septal defect by opposing tissue on both sides of the opening.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • **Implantable fabric covering**: The discs are covered with a biocompatible fabric that promotes occlusion of blood flow and eventual tissue ingrowth around the implant.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • **Retrievability and repositionability**: Our products are engineered to be fully retrievable or repositionable before final release, giving physicians the ability to adjust placement if initial positioning is suboptimal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • **Low profile and tailored sizing**: Our devices are offered in a range of sizes to match varied patient anatomies and defect diameters, and the low profile is intended to minimize trauma during delivery.

The procedure for implantation of these devices is performed in a cardiac catheterization lab and is intended to reduce the need for open heart surgery or a lifetime of drug therapy, which previously were the traditional methods of treating these defects. The procedure can generally be accomplished in approximately 30 minutes, and patients typically go home the same day or the next morning. In addition to sparing patients the pain and long hospital stays that are typically associated with open heart surgery, septal occlusion devices offer significant cost savings, such as a lifetime of blood-thinning drugs/medication, or the costs of treating possible recurrent strokes. The cost of open-heart surgery can be up to 3 times the cost of percutaneous closure of the PFO or ASD defects. Additionally, the cost of a lifetime of blood thinners can be up to 8 times higher for a patient, not including the cost of possible bleeding complications, drug interactions, and the need for additional specialist care.

The actual costs for reimbursement for open heart surgery, as compared to percutaneous closure of septal defects, are in the range of approximately $40,000 to $90,000 for total reimbursement to the facility and providers combined. Transcatheter closure reimbursements range from $30,000 to $60,000, and typically, an overnight hospital stay is not required. Heart surgery can also require ongoing medication that could exceed $200,000 over a person's lifetime. Other costs that can make heart surgery more expensive include hospitalizations relating to bleeding complications, drug interactions, and additional specialist care.

We currently sell and market septal occlusion devices for the closure of cardiac defects in countries outside of the United States. We believe the potential market for our PFO closure devices is significantly larger than the market for our other closure devices. Sales of our PFO devices account for approximately 90% of our current revenue. The overall market for ASD closure is smaller than that for PFO closure and currently accounts for approximately 10% of our revenue. We expect to continue devoting significant attention to the ongoing manufacturing, sales, marketing and regulatory approvals of our PFO closure devices.

We have received an Investigational Device Exemption (IDE) from the U.S. FDA and are enrolling patients in our PerFOrm clinical trial; however, we require additional funds to accelerate this trial in an effort to gain FDA clearance and sell these devices in the U.S. Our FDA approved US clinical trial requires a total enrollment of 500 patients (250 implanted with our device (the device group) and 250 implanted with existing market approved devices (the control group)) and follow-up of six months. The trial endpoints are (1) efficacy as measured by PFO defect closure at 6-month follow-up, and (2) safety as measured by adverse events occurring during the 6-month trial follow-up period. Currently the trial has enrolled 13 patients with no reported clinical complications, and continues to enroll patients as appropriate. Following full enrollment and patient follow-up, which is expected to take approximately 18 – 24 months to complete, we must then submit its PMA application to FDA for final approval.

We also market and sell delivery systems for use in conjunction with our septal occlusion devices. These systems are used specifically to deploy our septal occlusion devices during the catheterization procedure. These systems include a variety of components we manufacture in the U.S. including delivery sheaths, dilators, loading devices, delivery forceps and other components required for use in the delivery procedure. These delivery systems are manufactured in a variety of sizes to accommodate different occluder sizes.

#### Estimated Market Potential

#### Cryptogenic Stroke
Our primary focus is on the PFO closure market. While there is no current consensus on the size of the adult closure market, it is reported that a PFO defect occurs in approximately 25% of the adult population. Most people who have a PFO defect suffer no symptoms and therefore require no treatment. However, a significant number of individuals experience a cryptogenic stroke (a stroke of undetermined origin) which

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in turn may lead to the discovery and implication of a PFO defect. Approximately 50% of patients who suffer a cryptogenic stroke are subsequently found to have a PFO defect. If the defect is not closed, these individuals may be subject to repeated strokes that may lead to disability or death. We estimate that approximately 250,000 cases per year worldwide require immediate closure of PFO due to cryptogenic stroke. Our PFO devices sell outside the United States for retail prices ranging from $2,000 to $4,000 each. In the United States, the average retail price is approximately $11,000.

Our PFO device and other products require FDA approval to be marketed in the United States. See "Risk Factors — Risks related to Regulation" and "Business — Government Regulation." Several U.S. FDA clinical trials have been conducted by our competitors to prove the causal relationship between the PFO defect and cryptogenic stroke. On October 28, 2016, St. Jude Medical (now Abbott) was awarded FDA approval to begin marketing its PFO products in the United States. Subsequently, two additional separate long-term PFO trials conducted by W.L. Gore and the French Ministry of Health were both completed with favorable results. We believe the results from these trials will have a significant positive impact on the prospects and market potential for our PFO products. We believe the market for our products is still in its infancy as medical reimbursement in the U.S. was established in late 2019, just prior to the COVID-19 pandemic, which curtailed elective medical procedures.

Both the Abbott and Occlutech PFO occluder devices share a similar fundamental design as self-expanding, double-disc nitinol mesh implants with a central waist and fabric intended to facilitate tissue ingrowth for PFO closure. In contrast, the Encore PFO device offers several distinct advantages. Its soft, conforming design allows the device to sit naturally against the septum, improving anatomical integration. The device's low metal content also makes future septal punctures significantly easier if needed for left-atrial procedures. Published literature (see Becker et al., Clinical Cardiology, 2021) has reported lower post-implant arrhythmia rates with the Encore PFO device, highlighting what we believe to be its strong safety profile.

Patent Foramen Ovale closure procedures in the United States are typically reimbursed under specific Current Procedural Terminology (CPT) and ICD-10 codes, depending on the nature of the treatment and associated conditions. The primary CPT code used for transcatheter closure of a PFO is 93580 ("Percutaneous transcatheter closure of congenital interatrial communication"). (See "Business — Third-Party Reimbursement").

Encore's PFO IDE trial — known as the PerFOrm Trial (NCT05537753, IDE G220115) has received CMS Category B IDE coverage approval in April 2023. This means providers can be reimbursed for routine costs (e.g., imaging, office visits, applicable CPT procedures) associated with the trial, provided CMS or a Medicare Administrative Contractor (MAC) issues a Local Coverage Determination (LCD) that includes G220115.

#### Migraine Headache
In medical literature developed over the past decade, the PFO defect has also been associated with migraine headaches. Studies have shown that migraine sufferers have almost twice the rate of PFO occurrence than the general population. Published retrospective studies have further shown that large numbers of patients who routinely suffered from migraine before their PFO closure for stroke, have reported elimination or significant reduction in frequency or severity of their migraine headaches following PFO closure.

The U.S. FDA considers PFO closure for treatment of migraine headache to be a separate indication from PFO closure for stroke prevention and therefore requires a separate FDA clinical trial proving safety and efficacy. Currently, we are involved in conducting a clinical study outside the U.S. utilizing our PFO device to demonstrate its clinical effectiveness in eliminating or reducing migraine headaches in a specified target patient population. This study, "The Prevention of PFO associated Migraines using Mechanical PFO Closure Devices or Antiplatelet Therapy" is currently underway in Europe. This study seeks to document the effects of PFO closure specifically on patients who are responsive to antiplatelet therapy and, as such, has no predefined endpoints or patient enrollment goals. Participants in this study must be adults evaluated by a neurologist and diagnosed with migraine, must have at least a 3-month history of 15 or more migraine days per month and must have previously failed at least two preventative migraine medications. A right-to-left shunt via a PFO defect must be documented by currently accepted diagnostic methodologies.

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This study has now received institutional IRB approval and has initially enrolled its first three patients. The design of this study is primarily based on the trial design we believe will be required by the U.S. FDA. Upon the successful conclusion of this study, we intend to apply for U.S. FDA IDE approval to conduct a U.S. clinical trial to gain approval to market our PFO device in the United States for the treatment of migraine headaches. The Encore device used for treating cryptogenic stroke is the same device used for treating PFO-related migraines.

Over 45 million people in the U.S. are reported to suffer from migraine headaches, which indicates that the estimated market potential for PFO closure for migraine relief may be quite large. (Migraine Research Foundation, pubmed.ncbi.nlm.nih.gov. (2024); CDC Migraine Page, CDC.gov (2023). According to estimates in published literature, in excess of ten million of those migraine sufferers are expected to benefit from PFO closure (Reisman, A. et al. (2018, November) https://n.neurology.org/content/91/22/1010.abstract); Retrospective review of thienopyridine therapy in migraineurs with patent foramen ovale. Robert J. Sommer, MD, Tamim Nazif, MD, Lauren Privitera, MS, MPH, and Barbara T. Robbins, MSN, FNP-BC Neurology<sup>®</sup> 2018;91:1002-1009; Trabattoni, D., et al. (2022, June)

https://www.sciencedirect.com/science/article/pii/S245230X22000377). Assuming current average retail prices of approximately $11,000 per device, we believe the market represents a multi-billion-dollar opportunity. However, there is currently no consensus on the total size of this potential market and, significantly, there can be no assurance of any kind that a causal relationship will ultimately be proven between PFO and migraine headaches. See "Risk Factors — Potential Negative Impact of FDA Studies."

#### ASD
The estimated market potential for our ASD closure products is smaller than the market potential for our PFO products. Based on existing marketplace sales, the natural incidence of ASD and the prevalence of uncorrected ASD in the general population, we estimate the total potential worldwide market for our ASD products to be approximately 50,000 cases per year. The Company's ASD products also sell outside the U.S. for retail prices ranging from $2,000 to $4,000 each.

#### Strategy
We obtained CE Mark approval in connection with the Spin Out and are selling and marketing our PFO and ASD devices and accessories throughout the EU and other countries outside the United States. We intend to continue our overseas sales and marketing efforts, and we also plan to develop and pursue the sales and marketing of our products in the United States.

We plan to continue to devote significant effort to achieve U.S. FDA approval to market our septal occlusion products within the United States. These efforts will focus initially on conducting the necessary steps to gain U.S. FDA approval of our PFO device and related delivery systems for the stroke and migraine indications. Approval to sell Class III medical devices in the United States can be a time-consuming and costly process. See "Risk Factors — Risks related to Regulation." We must utilize professional clinical research organizations, leading physicians, and other experts to formulate and pursue our strategy for gaining regulatory approvals. Currently, Abbott Laboratories and W.L. Gore are the only companies with FDA approval to sell PFO devices in the United States. We intend to diligently and assertively complete the necessary requirements to achieve FDA approval for our PFO products and plan to enter the U.S. market as soon as possible.

#### Marketing, Sales and Distribution
Sales and marketing efforts for our product lines have been focused on the European market and other countries where we maintain the CE Mark and other certifications necessary to market our products. Specifically, the Company has been marketing in the following countries since its inception in 2017: France, Spain, Germany, Poland, United Kingdom, Greece, Hungary, Portugal, Czech Republic, Argentina, Ecuador, Estonia, Iraq, Lebanon, Lithuania, Latvia, Malaysia, Mexico, Peru, Slovakia and Switzerland. Our largest markets from a revenue standpoint are currently Italy, Germany and the Czech Republic. We sell our products through a distribution network that consists of independent distributors and limited direct sales personnel. Currently, we have sales distribution in Germany, France, Italy, Spain, Portugal, Switzerland, Poland, Turkey, Czech Republic, Iraq and several other countries. We are not currently marketing or

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selling any products in the United States, which we believe will be necessary in order to fully achieve our plans for growth and profitability. We have received an Investigational Device Exemption (IDE) from the U.S. FDA and are enrolling patients in our PerFOrm clinical trial, which we expect to take approximately two years to complete. See "Business — Government Regulation" and "Risk Factors — Risks related to Regulation." The Company expects to use direct sales personnel or enter into a strategic relationship in the United States if and when sales are permitted.

#### Research and Development
Our ongoing plans for research and development include continual refinement and evolution of our current devices, expansion of our delivery systems and other supporting products, and the development of devices for new or related applications, such as left heart failure. We conduct our research and development primarily using our own internal engineering and other personnel and supplement this approach by engaging outside professional firms as necessary. Generally, product design, engineering, prototyping, testing and manufacturing are completed internally, while biological and compatibility testing, package testing, sterilization and animal pilot studies are conducted externally. It is our policy, whenever possible, to develop intellectual property protection on all of our products and processes and we currently hold numerous patents regarding our technology. See "Patent, Trademarks and Proprietary Rights." No assurance can be given, however, that we will be successful in obtaining or maintaining market acceptance of any new products. See "Risk Factors — Risks related to Our Industry."

#### Competition
The medical device industry is highly competitive. Many companies and institutions that have developed or acquired competing products or technologies are larger and have substantially greater resources, more extensive experience and greater development, marketing and support capabilities than we do. The market for septal occlusion devices has been dominated by Abbott. Additional competitors in the cardiac defect closure field include W. L. Gore & Associates (Gore Medical) and Occlutech AB. We believe our products can compete successfully against other devices due to their distinctive features and benefits. Compared to competing first generation devices, our devices use less metal, allow for a flatter profile, are self-loading, fully retrievable, produce less cardiac arrhythmias and allow for future septal puncture procedures. Physicians have noted these significant features as differentiators of our products, and in a peer-reviewed dual-center study, "*Dual-center experiences with interventional closure of patent foramen ovale: A medium-term follow-up study comparing two patient groups aged under and over 60 years*," our device demonstrated superior or equal results compared to Abbott and Occlutech (Becker et al., Clinical Cardiology, 2021). However, our competitors have greater resources and may be able to penetrate these markets in Europe and the United States sooner than we can, or have already in some cases penetrated these markets. Although we believe our devices are based on sound and competitive technology, there can be no assurance that our present products will be able to compete successfully with existing or future competitive products or that we will be able to develop or acquire additional products or otherwise effectively respond to new products or technological advances developed by competitors. See "Risk Factors — Risks related to Our Industry."

#### Government Regulation
Government regulation in the United States and other countries is a significant factor in the development and marketing of our products and in our ongoing manufacturing and research and development activities. We and our products are regulated by the FDA under a number of statutes, including the Federal Food, Drug and Cosmetic Act.

Under the Federal Food, Drug and Cosmetic Act, medical devices are categorized into one of three classes, Class I, II or III, on the basis of the controls deemed necessary to reasonably ensure their safety and effectiveness. Class I devices are subject to the least extensive controls, as the safety and effectiveness reasonably can be assured through general controls such as labeling, premarket notification and adherence to the FDA's good manufacturing practices. For Class II devices, safety and effectiveness can be assured through the use of special controls, such as performance standards, post-market surveillance, patient registries, and FDA guidelines. Class III devices, which are life-sustaining or life-supporting implantable devices, or new devices that have been found not to be substantially equivalent to legally marketed devices,

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require the highest level of control, generally requiring premarket approval by the FDA to ensure their safety and effectiveness. All companies subject to FDA regulation must comply with a variety of rules, including the FDA's good manufacturing practices regulations, and are subject to periodic inspections by the FDA and other applicable agencies. If the FDA believes that its regulations have not been fulfilled, it may implement extensive enforcement powers, which were strengthened by the enactment of the Safe Medical Devices Act of 1990. The FDA's powers include, but are not limited to, the ability to ban products from the market, prohibit the operation of manufacturing facilities and order recalls of products from customer locations.

If a manufacturer or distributor of medical devices can establish that a proposed device is "substantially equivalent" to a legally marketed Class I or Class II medical device or to a Class III medical device for which the FDA has not required a premarket approval application, the manufacturer or distributor may seek FDA marketing clearance for the device by filing a 510(k) notification. Following submission of the 510(k) notification, the manufacturer or distributor may not place the device into commercial distribution in the United States until an order has been issued by the FDA. The FDA's target for issuing these orders is within 90 days of submission, but the process can take significantly longer. The order may declare the FDA's determination that the device is "substantially equivalent" to another legally marketed device and allow the proposed device to be marketed in the United States. The FDA may, however, determine that the proposed device is not substantially equivalent or may require further information, such as additional test data, before making a determination regarding substantial equivalence.

If a manufacturer or distributor of medical devices cannot establish that a proposed device is substantially equivalent to another device via the 510(k) process, the manufacturer or distributor must seek premarket approval of the proposed device. A premarket approval application must be submitted, supported by extensive data, including preclinical and clinical trial and follow-up data, to prove the safety and efficacy of the device. Generally, a company is required to obtain an investigative device exemption before it commences clinical testing in the United States in support of a premarket approval application. The FDA monitors and oversees the use and distribution of such "research use only" and "investigational use only" products. Although by statute, the FDA has 180 days to review a premarket approval application once it has been accepted for filing, during which time an advisory committee may also evaluate the application and provide recommendations to the FDA, premarket approval application reviews often extend over a significantly protracted time period, usually 12 to 24 months or longer from filing. Accordingly, the FDA review of any premarket approval application we submit may encounter prolonged delays and the data collected and submitted in our premarket approval application may not be found to support approval.

We intend to request Class III market clearance for our cardiac closure devices through the FDA's investigational device exemptions ("IDE") / premarket approval ("PMA") application process. In September 2022, the FDA granted us IDE approval, which allowed us to begin our Class III clinical trial in the United States. We believe this trial will take approximately two years to complete. Although we are optimistic about our ability to ultimately obtain final approval from the FDA, there can be no assurance that we will not experience prolonged delays or that the FDA would ultimately find our submission satisfactory. Moreover, even if we satisfy the FDA's conditions and complete our clinical trial, there can be no assurance of any kind that such trials will yield sufficient results to allow commercial sales to ever be made in the United States.

The FDA and the Federal Trade Commission have the power to scrutinize labeling and promotional activities. The FDA also imposes post-marketing controls on our products, and registration, listing, medical device reporting, post-market surveillance, device tracking and other requirements on medical devices. If we fail to meet these FDA requirements or receive adverse FDA determinations regarding our clinical and preclinical trial, we and our employees could be subject to injunction, prosecution, civil fines, seizure or recall of products, prohibition of sales, or suspension or withdrawal of any previously granted approvals.

The Federal Food, Drug and Cosmetic Act regulates our quality control and manufacturing procedures by requiring us and our contract manufacturers to demonstrate compliance with current good manufacturing practices as specified in published FDA regulations. The FDA monitors compliance with good manufacturing practices by requiring manufacturers to register with the FDA, which subjects them to periodic unannounced FDA inspections of manufacturing facilities. We must be registered with the FDA to pursue U.S. sales of our products and be subject to such inspections on a periodic basis. Continued marketing of our

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products may be adversely affected if violations of applicable regulations are noted during FDA inspections of our manufacturing facilities or the facilities of our contract manufacturers. These regulations are subject to change and depend heavily on administrative interpretations. Future changes in regulations or interpretations made by the FDA or other regulatory bodies, with possible retroactive effects, may affect us in an adverse manner.

Sales of medical devices outside of the United States are subject to United States export requirements and foreign regulatory requirements. Legal restrictions on the sale of imported medical devices vary from country to country. The time required to obtain approval from a foreign country may be longer or shorter than that is required for FDA approval, and the requirements may differ. For countries in the European Union, certification procedures are available for medical devices, the successful completion of which allows the certified devices both to be shipped from the United States and to be placed on the market in most European countries. Medical devices may not be sold in a general manner in Europe unless they display a mark indicating compliance with these procedures. The CE mark represents regulatory approval in the European Union. We obtain and maintain CE mark approval on our septal occlusion products. There can be no assurance that we will be able to obtain regulatory approvals or clearances for our products in any foreign country that we may seek to enter in the future.

No assurance can be given that the FDA or other regulatory authorities will give on a timely basis, if at all, the requisite approvals for medical products we currently have under development or that we may develop in the future. Even if approvals are received, the process of obtaining clearance to market medical products is costly and time consuming and can delay the marketing and sale of our products. Further, federal, state, foreign and other regulations regarding the manufacture and sale of medical devices are subject to change. We cannot predict what impact these changes, if any, might have on our business, financial condition or results of operations. See "Risk Factors."

#### Third-Party Reimbursement
Our products are medical devices that are currently commercially available in certain international markets, including the European Union under the CE Mark, and are under development in the United States, where we are conducting clinical trials and seeking regulatory approval from the U.S. Food and Drug Administration ("FDA").

In the United States, health care providers such as hospitals and physicians that purchase and use medical devices such as ours generally rely on third-party payors, including Medicare, Medicaid, and private commercial insurers, to reimburse all or a portion of the cost of the medical procedures in which the devices are used. Reimbursement decisions are typically made on a procedure-by-procedure basis, rather than on the specific medical device used, and depend on a complex framework of coverage determinations, coding, and payment levels.

Physicians' and hospitals' decisions to recommend or adopt devices such as ours are likely to be heavily influenced by the availability, scope, and adequacy of reimbursement from third-party payors. Even if our products receive FDA approval, reimbursement coverage by Medicare, Medicaid, or private payors is not guaranteed. Payors may determine that procedures involving our products are not "reasonable and necessary," are experimental or investigational, or otherwise do not meet applicable coverage criteria, particularly for newer technologies or for indications not expressly addressed in existing coverage policies.

At present, reimbursement has been established in the United States for certain approved competing products used in similar clinical settings. However, the existence of reimbursement for competing products does not ensure that our products will receive similar coverage or payment levels. In some cases, the use of our products may be reimbursed under existing procedural codes with payment levels that may be insufficient to encourage widespread adoption or may require hospitals or physicians to absorb part or all of the cost of the device. In other cases, new or revised reimbursement codes or coverage determinations may be required, which can be time-consuming, uncertain, and subject to regulatory and payor discretion.

In addition, government and private third-party payors are increasingly focused on cost containment and may limit both the scope of coverage and the amount of reimbursement for new medical technologies.

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Coverage policies and reimbursement rates may change over time, and future reductions in reimbursement levels or restrictive coverage decisions could adversely affect the commercial viability of our products, even after regulatory approval.

While our products are currently being evaluated in clinical trials in the United States, reimbursement for procedures performed as part of clinical research is limited and subject to specific regulatory and payor requirements. Medicare and other payors may reimburse certain routine care costs associated with qualifying clinical trials but generally do not reimburse the cost of investigational devices themselves. As a result, our ability to generate revenue in the United States prior to FDA approval is limited, and adoption of our products during the investigational phase depends largely on clinical trial participation rather than routine clinical use.

Outside the United States, reimbursement and health care payment systems vary significantly by country and region and may involve government-sponsored health care systems, statutory health insurance, or private insurance arrangements. In the European Union, while our products have obtained CE Mark certification and may be marketed in accordance with applicable regulatory requirements, reimbursement is determined separately at the national or regional level and is not guaranteed by regulatory clearance alone.

In certain EU and other international markets, providers may be able to use our products under existing reimbursement frameworks, global hospital budgets, diagnosis-related group (DRG) systems, or discretionary funding mechanisms. However, in many cases, specific reimbursement codes, coverage decisions, or inclusion in national or regional payment schedules may be required to achieve broad commercial adoption. The timing, outcome, and sustainability of such reimbursement decisions are uncertain and may differ materially from country to country.

If adequate reimbursement coverage and payment levels are not available from insurers, government payors, or other third-party payors in the United States or in international markets, health care providers may limit or decline to purchase or use our products. In such circumstances, patients may be required to pay for our products out-of-pocket, which could significantly limit adoption. If third-party payors, health care providers, or patients are unwilling to pay for our products at prices sufficient to support our business, our revenues, profitability, and long-term growth prospects would be materially and adversely affected, and our potential revenue and earnings could be significantly decreased or eliminated.

#### Manufacturing Operations
We manufacture and assemble all of our products in the U.S. Certain components of our products are manufactured by other third-party vendors on a purchase order basis that are generally payable on net 30-day terms. The Company has no long-term manufacturing arrangements. We take steps to assure that our vendors have received certification that their manufacturing facilities comply with European standards for quality assurance and manufacturing process control. We have developed multiple sources for raw materials and component vendors. We are not limited with respect to sources or availability of raw materials to manufacture our products. We have the capacity to scale our operations, but we intend to develop additional internal manufacturing capabilities as may be required or advisable based on volume, complexity and other variables.

#### Patents, Trademarks and Proprietary Rights
We diligently pursue patent protection on our products, processes and technologies. Currently, we have 9 granted and issued U.S. patents pertaining to our septal occlusion products and technologies, some of which have expired as noted below. Two of our patents which comprehensively cover the most important aspects of our PFO and ASD products have remaining useful lives of 15 years and 5 years, respectively. The Company does not license any patents, rights, or other IP from any third parties. The Company's patents are all U.S. Utility Patents owned by the Company and are described in further detail below:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Title**  | **Patent #**  | **Issue Date**  | **Expiration <br> date**  | **Years <br> Left**  |
| **PFO Device**  | **11771411** | 10/3/2023  | 2040  | **15**  |
| **Occlusion Device with Centering Arm**  | **8366741** | 2/5/2013  | 2030  | **5**  |
| Right Retrieval Mechanism | 7658748 | 2/9/2010  | 2023  | expired  |
| Occlusion Device with Flexible Fabric Connector | 7691115 | 4/6/2010  | 2023  | expired  |
| Occlusion Device with Flexible Polymeric Connector | 7749238 | 7/6/2010  | 2023  | expired  |
| Daisy Design for Occlusion Device | 7582104 | 9/1/2009  | 2022  | expired  |
| Occlusion Device Having Five or More Arms | 7115135 | 10/3/2006  | 2022  | expired  |
| Occlusion Device with Non-Thrombogenic Properties | 6379368 | 4/30/2002  | 2021  | expired  |
| Occlusion Device with Stranded Wire Support Arms | 6206907 | 3/27/2001  | 2020  | expired  |

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There can be no assurance that additional patents will be granted on products we are developing or plan to develop in the future, or that the patents we were issued in the past or in the future will be of material benefit, or that we will have sufficient resources to enforce our patent rights. Nor can there be any assurance that our products do not and will not infringe on patents, copyrights or other proprietary information known or claimed by others, or that others will not successfully utilize part of or all of our technologies without compensation to us. If we are found to have infringed on the rights of a third party, we may be unable to market our products without a license from such third party. There can be no assurance that we would be able to obtain such a license on satisfactory terms, or at all.

We also rely on trade secrets and proprietary know-how to protect our products and have internal security and secrecy measures. We have not historically used employment agreements but may utilize such measures in the future as we may deem necessary.

#### Product Liability Insurance
Our business entails an inherent risk of product liability claims. Any product liability claim could have a material adverse impact on us and our prospects. We currently maintain product liability insurance with coverage of $5,000,000 per occurrence and an annual aggregate maximum of $5,000,000. There is no assurance, however, that such insurance coverage will continue to be available to us at affordable rates, if at all. There can also be no assurance that our existing insurance and future insurance, if available, would cover or be sufficient to cover all claims that may be brought against us. A liability claim, even one without merit, could result in significant legal defense costs, which would increase our expenses and result in increased losses. See "Risk Factors — Risks related to Our Business."

#### Employees
We currently employ 16 people, including 10 employees in manufacturing, one employee in each of research and development, quality assurance, clinical and regulatory, and sales and marketing, and two employees in finance and administration.

#### Properties
On February 3, 2023, the Company entered into a lease with a third party for approximately 7,500 square feet of office, manufacturing, and warehouse space at 2975 Lone Oak Drive, Suite 140, Eagan, Minnesota. The lease terminates on May 31, 2029. Monthly rental payments are approximately $13,000 and vary with certain costs associated with the leased facilities, such as real estate taxes, utilities, and maintenance expenses. We believe our present facilities are in good condition, adequate for current operations, and provide ample capacity to scale up.

#### Legal Proceedings
We are not a party to any pending legal proceedings. None of our directors, officers, or affiliates is involved in a proceeding adverse to our business or has a material interest adverse to our business.

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#### MANAGEMENT
The following table sets forth the names and ages of the Company's officers and members of its Board of Directors (the "Board"), together with all positions and offices held with the Company by these persons:

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| | | |
|:---|:---|:---|
| **NAME**  | **AGE**  | **POSITION WITH THE COMPANY**  |
| Joseph A. Marino | 74  | Chairman of the Board of Directors, President and Chief Executive Officer |
| Peter M. Buonomo | 65  | Senior Vice President, Director |
| Scott S. Robinson | 46  | Treasurer |
| Timothy G. Laske, PhD | 62  | Director |
| Christopher J. Turnbull | 70  | Director |
| Todd C. Johnson | 48  | Director |

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#### Executive Officers and Employee Directors
*Joseph A. Marino* has served as Chairman of the Board of Directors since 2018 and President & Chief Executive Officer of the Company since 2024. Mr. Marino has served as Chairman of the Board of Directors and Chief Executive Officer of Cardia, Inc. since 1998. He currently serves as Chairman of the Board of Directors of Electro-Sensors, Inc. (NASDAQ: ELSE), a publicly held company that designs and manufactures hazard monitoring systems for industrial applications. He has served on the Electro-Sensors board since 1996 and has served as its Chairman since 2013. From 1994 to 1998, Mr. Marino served as the Chairman of the Board of Directors and Chief Executive Officer of Applied Biometrics, Inc., a publicly held manufacturer of medical devices. From 1980 to 1994, Mr. Marino served as Chairman of the Board of Directors and President and Chief Executive Officer of Biomedical Dynamics Corporation, a publicly held manufacturer of medical products. From 1977 to 1983, Mr. Marino served as Director and Department Head of various clinical services at the University of Minnesota Hospitals. Mr. Marino graduated from the University of Minnesota with a Bachelor of Science degree in 1972. The Board has determined that Mr. Marino is qualified to serve as a director based on his extensive experience serving on the boards of publicly held companies, coupled with his strong technical and clinical background in the medical device industry, particularly in connection with the development of transcatheter closure devices. In addition to his strong technical and clinical background in the medical device industry, Mr. Marino brings significant industry knowledge and corporate governance experience to the Board.

*Peter Buonomo* has served as Senior Vice President of the Company since 2025 and as a director since 2025. Previously, he was Vice President of Sales and Marketing at the Company from 2018 to present. From 1998 to 2023, he was the VP of Sales and Marketing and a Corporate Officer at Cardia, Inc. From 1994 to 1998, Mr. Buonomo was the Director of Marketing and VP of Sales and Marketing at Applied Biometrics, Inc., a publicly held medical device manufacturer. Mr. Buonomo graduated from Oral Roberts University in 1983 with a Bachelor of Science in Business, he went on to complete his MBA, also at Oral Roberts University, in 1984. The Board has determined that Mr. Buonomo is qualified to serve as a director based on his extensive experience as Vice President of Sales and Marketing for multiple medical device companies, where he played a key role in developing markets for innovative products and fostering strong relationships with the medical community. His expertise in international market development and commercial strategy for transcatheter closure devices provides the Board with valuable insight into global growth opportunities, distribution channels and customer engagement.

*Scott S. Robinson* has served as Treasurer and VP of Finance of the Company since 2018. Mr. Robinson served as Controller of Cardia, Inc. from 2010 until 2018. Mr. Robinson received an MBA in Finance from Iowa State University. The Board has determined that Mr. Robinson is qualified to serve as an Officer based on his financial and executive experience, including his current role as Treasurer and Vice President of Finance and his prior service as the Controller of Cardia, Inc. His institutional knowledge of the Company, together with his MBA in Finance, provides the Board with valuable expertise in financial management, resource management and capital allocation.

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#### Non-Employee Directors
*Timothy Laske* has served as a Director of the Company since 2025. Mr. Laske is currently Vice President of Research & Development for the Cardiac Ablation Solutions Business at Medtronic, a role he has held since 2024. He is a Medtronic Bakken Fellow, a Technical Fellow, and a Fellow of the American Institute for Medical and Biological Engineering. His previous roles at Medtronic include VP of Research and Business Development for AF Solutions, Senior Product Development Director for Heart Valves, Senior Program Director for Transcatheter Heart Valves, Technology Director for Cardiac Rhythm Therapy Delivery, and various technology management and design engineering positions. Prior to his 32-year tenure at Medtronic, he worked as a Design Engineer at Ford Motor Company. He has a B.S. degree from Michigan Technological University, an M.S. from the University of Michigan, and a Ph.D. in Biomedical Engineering from the University of Minnesota, where he serves as an Adjunct Assistant Professor in the Department of Surgery. The Board has determined that Mr. Laske is qualified to serve as a director based on his more than three decades of leadership and technical experience in the medical device industry, including senior roles in research, product development, and business development at Medtronic. His extensive background in advancing cardiac and structural heart technologies provides the Board with valuable expertise in innovation, clinical application, and industry strategy.

*Christopher J. Turnbull* has served as a Director of the Company since 2018. Mr. Turnbull has served as a Director of Cardia, Inc. since the company's incorporation in 1998. From 1993 to 1997, Mr. Turnbull was the Chairman and CEO of St. Paul Medical, Inc., a medical device manufacturer of products used in the infection control marketplace. He served as Chairman and CEO of T Medical, Inc., from 2001 to 2003, a medical device manufacturer of products used in advanced airway management procedures. He founded and served as CEO of Critical Care Anesthetists, PA from 1986 to 2003. From 2005 to 2015, he served as CEO of Owatonna Anesthesia Services P.A. In 2015, he founded and served as CEO of Minnesota Anesthesia Associates, PLC (MAA) until 2020. From 2015 to 2017, Mr. Turnbull also provided anesthesia services to the Mayo Clinic in Rochester, Minnesota. From 2017 to 2020, Mr. Turnbull served as the lead CRNA for Twin Cities Surgery Center. Mr. Turnbull retired in 2020 after 40 years of Nurse Anesthesia practice. Mr. Turnbull graduated from Saint Mary's School of Nurse Anesthesiology in 1979 and became a Board-Certified Registered Nurse Anesthetist (CRNA) in 1980. The Board has determined that Mr. Turnbull is qualified to serve as a director based on his extensive executive leadership experience as chairman and chief executive officer of medical device manufacturing companies and as the founder and chief executive officer of a company providing anesthesia services to both inpatient and outpatient healthcare centers. His background as both an operator and entrepreneur provides the Board with valuable insight into corporate leadership, healthcare services, and the medical device industry.

*Todd C. Johnson* has served as a Director of the Company since 2021 and was appointed to the role by the Company's Series A shareholders. Mr. Johnson has served as the Chief Compliance Officer of Cedar Point Capital, LLC, a securities investment firm, for the past 18 years. Prior to his current role, Mr. Johnson worked in the Minneapolis Private Placement Department at Stifel Nicolaus, where he assisted in pricing, placing, and closing private placement investments. Mr. Johnson also serves as a board member of Lifelens Technologies, a privately held company and an observer on the board of RxFunction, Inc. In 2000, Mr. Johnson graduated from Southern Methodist University in Dallas, Texas, with a Bachelor of Science in Finance. The Board has determined that Mr. Johnson is qualified to serve as a director based on his extensive experience in compliance and investment advisory services, together with his background in private placement investments. His expertise in financial management, regulatory oversight, and risk management provides the Board with valuable perspective on governance and strategic decision-making.

#### Board of Directors
Our Board of Directors currently consists of five directors, Messrs. Marino, Turnbull, Laske, Johnson and Buonomo. None of our directors are related, and Messrs. Turnbull, Laske and Johnson are independent non-employee directors.

#### Composition and Election of our Board of Directors
Our business and affairs are managed under the direction of our board of directors. Our board of directors may establish the authorized number of directors from time to time by resolution. In accordance

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with our Bylaws that will be in effect immediately prior to the completion of this offering, our board of directors may be comprised of not fewer than two or more than nine directors, each to serve a one-year term. We currently have five directors. At each annual meeting of stockholders, the directors will be elected to serve for a one-year term or until their earlier resignation, removal or successor is duly elected. Pursuant to the terms of our Series A preferred stock instruments, the Series A holders have the contractual right to appoint one representative to our board of directors. Todd C. Johnson currently serves on our board under this arrangement. His initial term was recently renewed for another one year in accordance with the Series A instruments. Upon the conversion of all of the Series A preferred stock in connection with this offering, the board representation right will terminate and former Series A holders will no longer have the continuing right to designate a director.

#### Director Independence
Our board of directors has undertaken a review of the independence of each director. Based on information provided by each director concerning her or his background, employment and affiliations, our board of directors has determined that Messrs. Turnbull, Laske and Johnson do not have any relationships 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 listing standards. 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 shares by each non-employee director and the transactions described in the section titled "Certain Relationships and Related Party Transactions."

#### Committees of Our Board of Directors
Our board of directors will establish an audit committee, a governance committee, and a compensation committee prior to the completion of this offering. The composition and responsibilities of each of the committees of our board of directors are described below. Members serve on these committees until their resignation or until otherwise determined by our board of directors. Our board of directors may establish other committees as it deems necessary or appropriate from time to time.

#### Audit Committee
Our audit committee consists of Mr. Turnbull, Mr. Johnson and Mr. Marino. Our board of directors has determined that a majority of the members of the audit committee satisfies the independence requirements under listing standards and Rule 10A-3(b)(1) of the Exchange Act. Furthermore, Mr Marino will be replaced as a member of the audit committee by Mr. Laske within 12 months to continue meeting the independence requirements under the listing standards above.

The chair of our audit committee is Mr. Turnbull, who our board of directors has determined is an "audit committee financial expert" within the meaning of SEC regulations. Each member of our audit committee can read and understand fundamental financial statements in accordance with applicable requirements. In arriving at these determinations, our board of directors has examined each audit committee member's scope of experience and the nature of their employment in the corporate finance sector.

The principal duties and responsibilities of our audit committee include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • selecting a qualified firm to serve as the independent registered public accounting firm to audit our financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • helping to ensure the independence and performance of the independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • helping to maintain and foster an open avenue of communication between management and the independent registered public accounting firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • discussing the scope and results of the audit with the independent registered public accounting firm, and reviewing, with management and the independent registered public accounting firm, our interim and year-end operating results;

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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; • developing procedures for employees to submit concerns anonymously about questionable accounting or audit matters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reviewing our policies on risk assessment and risk management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reviewing related party transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • obtaining and reviewing a report by the independent registered public accounting firm at least annually, that describes its internal quality-control procedures, any material issues with such procedures, and any steps taken to deal with such issues when required by applicable law; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • approving (or, as permitted, pre-approving) all audit and all permissible non-audit services to be performed by the independent registered public accounting firm.

Our audit committee will operate under a written charter, to be effective prior to the completion of this offering, that satisfies the applicable listing standards.

#### Governance Committee
Our governance committee will consist of Mr. Turnbull, Mr. Johnson, and Mr. Marino. The chair of our governance committee is Mr. Turnbull. Our board of directors has determined that a majority of the members of the governance committee satisfy the independence requirements under listing standards. Furthermore, Mr. Marino will be replaced as a member of the governance committee by Mr. Laske within 12 months to continue meeting the independence requirements under the listing standards.

Our board of directors has determined that each member of the governance committee is independent under the listing standards.

The governance committee's responsibilities include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • identifying, evaluating, and selecting, or recommending that our board of directors approve, nominees for election to our board of directors and its committees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • approving the retention of director search firms;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • evaluating the performance of our board of directors and of individual directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • considering and making recommendations to our board of directors regarding the composition of our board of directors and its committees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • evaluating the adequacy of our corporate governance practices and reporting; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • overseeing an annual evaluation of the board's performance.

Our governance committee will operate under a written charter, to be effective prior to the completion of this offering, that satisfies the applicable listing standards.

#### Compensation Committee
Our compensation committee consists of Mr. Turnbull, Mr. Johnson and Mr. Marino. The chair of our compensation committee is Mr. Turnbull. Our board of directors has determined that a majority of the members of the compensation committee are independent under listing standards. Within 12 months, Mr. Marino will be replaced by Mr. Laske as a compensation committee member to ensure continued compliance with independence under the listing standards.

The principal duties and responsibilities of our compensation committee include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • approving the retention of compensation consultants and outside service providers and advisors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reviewing and approving, or recommending that our board of directors approve, the compensation, individual and corporate performance goals and objectives and other terms of employment of our executive officers, including evaluating the performance of our chief executive officer and other executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reviewing and recommending to our board of directors the compensation of our directors;

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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; • administering our equity and non-equity incentive plans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reviewing our practices and policies of employee compensation as they relate to risk management and risk-taking incentives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reviewing and evaluating succession plans for the executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reviewing and approving, or recommending that our board of directors approve, incentive compensation and equity plans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • reviewing and establishing general policies relating to compensation and benefits of our employees and reviewing our overall compensation philosophy.

Our compensation committee will operate under a written charter, to be effective prior to the completion of this offering, that satisfies the applicable listing standards.

#### Compensation Committee Interlocks and Insider Participation
None of the members of the compensation committee is currently, or has been at any time, one of our executive officers or employees. None of our executive officers currently serves, or has served during the last year, as a member of the board of directors or compensation committee of any entity that has one or more executive officers serving as a member of our board of directors or compensation committee.

#### Code of Business Conduct and Ethics
In connection with this offering, we intend to adopt a Code of Conduct and Ethics that applies to all our employees, officers and directors. This includes our principal executive officer, principal financial officer and principal accounting officer or controller, or persons performing similar functions. The full text of our Code of Conduct and Ethics will be posted on our website at Encore-Medical.com. We intend to disclose on our website any future amendments of our Code of Conduct and Ethics or waivers that exempt any principal executive officer, principal financial officer, principal accounting officer or controller, persons performing similar functions or our directors from provisions in the Code of Conduct and Ethics. Information contained on, or that can be accessed through, our website is not incorporated by reference into this prospectus, and you should not consider information on our website to be part of this prospectus.

#### Director and Compensation
We currently pay no fees or other compensation for service on the Board or any committee thereof. Non-employee directors of the Company are eligible to participate in stock option programs that we may adopt from time to time. See "Executive Compensation; 2018 Stock Incentive Plan." We may grant non-employee directors non-qualified options to purchase shares of common stock from time to time for their services.

#### Employment Agreement
We do not currently have any employment, change of control, or non-compete agreements with any of our executive officers or employees.

#### Indemnification and Waiver of Director Liability
The Minnesota Business Corporation Act provides that our officers and directors have the right to indemnification from us for liability arising out of certain actions. Such indemnification may be available for liabilities arising in connection with securities offerings.

We have adopted in our Articles a provision which limits personal liability for breach of the fiduciary duty of our directors, to the extent provided by Section 302A.251 of the Minnesota Business Corporation Act. Such provision eliminates the personal liability of directors for damages occasioned by breach of fiduciary duty, except for liability based on the director's duty of loyalty to us, liability for acts or omissions not made in good faith, liability for acts or omissions involving intentional misconduct or a knowing violation of law, liability based on payments of improper dividends, liability based on violations of state securities laws, and liability for acts occurring prior to the date such provision was added.

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Section 302A.521 of the Minnesota Business Corporation Act provides that a Minnesota business corporation shall indemnify any director, officer, employee or agent of the corporation made or threatened to be made a party to a proceeding, by reason of the former or present official capacity (as defined therein) of the person, against judgments, penalties, fines, settlements and reasonable expenses incurred by the person in connection with the proceeding if certain statutory standards are met. "Proceeding" means a threatened, pending or completed civil, criminal, administrative, arbitration or investigative proceeding, including one by or in our right. Article VIII of our bylaws provides that we shall indemnify persons to the fullest extent permissible by the Minnesota Business Corporation Act. Section 302A.521 contains detailed terms regarding such right of indemnification and reference is made thereto for a complete statement of such indemnification rights.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers, or persons controlling us pursuant to the foregoing provisions, we have been informed that, in the opinion of the SEC, such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

#### Board Advisor
Greg Steiner has served as Advisor to the Board since 2024. Mr. Steiner provides advisory and consulting services to the Company pursuant to an Independent Contractor Agreement, dated December 15, 2024, under which he is compensated on an hourly basis for services rendered. Mr. Steiner has extensive experience in public accounting with large public accounting firms and representing audit teams for public and private clients. His background in auditing, financial reporting, and corporate governance provides the Board with expertise in financial oversight and risk management. His work on behalf of the Company primarily involves providing financial expertise and governance guidance to the Board. He has previously served as a Senior Manager at Ernst & Young LLP, and as an Audit Partner and Audit Practices Leader at Grant Thornton LLP. Mr. Steiner also served as a Board Member and Chairman of the Board of the Minnesota State Board of Accountancy. He is currently an Accounting Professor in a master's program in the School of Public Health at the University of Minnesota.

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#### EXECUTIVE COMPENSATION
This discussion may contain forward-looking statements that are based on our current plans, considerations, expectations and determinations regarding future compensation programs. Actual compensation programs that we adopt following the completion of this offering may differ materially from the currently planned programs summarized in this discussion.

Currently, the Company's compensation plan for its executive officers consists of salary and benefits, including a Company healthcare plan or comparable allowance, and a Company auto allowance. The Company has no formal regular plan for the issuance of bonuses, stock options, or other forms of compensation; however, Company executives are eligible for such other forms of compensation at the discretion of the board of directors. Other than stock options as listed below, no other compensation was awarded in 2023 or 2024.

In 2024, our "named executive officers" and their positions were as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Joseph A. Marino, Chairman, President, and CEO

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Peter M. Buonomo, Director, Sr. Vice President

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Scott S. Robinson, Vice President of Finance

#### Summary Compensation Table
The following table sets out the compensation paid or payable to the Named Executive Officers ("NEO") of the Company during the last two fiscal years:

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Name and Principal Position**  | **Year**  | **Salary <br> ($)**  | **Bonus <br> ($)**  | **Option <br> Awards <br> ($)<sup>(9)</sup>**  | **Non-Equity <br> Incentive Plan <br> Compensation <br> ($)**  | **All Other <br> Compensation <br> ($)**  | **Total <br> ($)**  |
|  Joseph A. Marino, <br> *Chairman, President, and CEO*  | 2024 | $184825(1) | $0 | $92100(2) | $0 | $0 | $276925 |
|  Joseph A. Marino, <br> *Chairman, President, and CEO*  | 2023 | $0 | $0 | $0 | $0 | $0 | $0 |
|  Peter M. Buonomo, <br> *Director, Sr. Vice President*  | 2024 | $82307(3) | $0 | $230250(4) | $0 | $20663(5) | $333220 |
|  Peter M. Buonomo, <br> *Director, Sr. Vice President*  | 2023 | $0 | $0 | $0 | $0 | $0 | $0 |
|  Scott S. Robinson, <br> *Vice President of Finance*  | 2024 | $137000 | $0 | $138150(6) | $0 | $24789(7) | $299939 |
|  Scott S. Robinson, <br> *Vice President of Finance*  | 2023 | $10538(8) | $0 | $0 | $0 | $0 | $10538 |

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(1) Employment began April 4, 2024. This figure represents the actual payroll in 2024. Approved annualized amount is $275,000.

(2) Comprised of options to purchase 50,000 shares of common stock.

(3) Employment began on April 4, 2024. This figure represents the actual payroll in 2024. Approved annualized amount is $127,672.

(4) Comprised of options to purchase 125,000 shares of common stock.

(5) Comprised of healthcare benefits and auto allowance.

(6) Comprised of options to purchase 75,000 shares of common stock.

(7) Comprised of $13,751 of healthcare benefits and a $6,912 auto allowance.

(8) Employment began on December 1, 2023. This figure represents the actual payroll in 2023. Approved annualized amount is $137,000.

(9) Amounts reflect the grant date fair value of stock options granted during 2024 computed in accordance with ASC Topic 718, rather than the amounts paid to or realized by the named individual. See Note 10 of the consolidated financial statements included in this prospectus for a discussion of valuation assumptions made in determining the grant date fair value and compensation expense of our stock options.

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#### Executive Compensation Program
For the years ended December 31, 2024 and December 31, 2023, the compensation for our named executive officers generally consisted of a base salary and stock options. These elements (and the amounts of compensation and benefits under each element) were selected because we believe they are necessary to help us attract and retain executive talent which is fundamental to our success. Below is a more detailed summary of the current executive compensation program as it relates to our named executive officers.

#### Base Salaries
Our named executive officers receive an annual 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. For fiscal year 2024, the base salaries were $275,000 for Mr. Marino, $127,672 for Mr. Buonomo, and $137,000 for Mr. Robinson.

The Company anticipates that Mr. Marino, Mr. Buonomo, and Mr. Robinson will be the most highly compensated officers of the Company for the fiscal year ended 2025.

#### Equity Incentive Compensation
On June 5, 2018, Mr. Robinson was granted an option to purchase 25,000 shares of common stock, and Mr. Turnbull was granted an option to purchase 50,000 shares of common stock. Each such option has an exercise price of $1.00 per share, is fully vested, and expires on June 4, 2028.

On August 15, 2024, Mr. Marino was granted options to purchase 50,000 shares of common stock, Mr. Turnbull was granted an option to purchase 50,000 shares of common stock, Mr. Buonomo was granted options to purchase 125,000 shares of common stock, and Mr. Robinson was granted options to purchase 75,000 shares of common stock. All of these grants, which were made pursuant to the Plan described below, have an exercise price of $5.00 per share and vest fully upon issuance.

#### Outstanding Equity Awards at Fiscal Year End on December 31, 2024
The following table lists all outstanding equity awards held by the NEOs of the Company as of December 31, 2024.

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Option Awards**  | **Option Awards**  | **Option Awards**  | **Option Awards**  |
| **Name**  | **Number of <br> Securities <br> Underlying <br> Unexercised <br> Options <br> Exercisable (#)**  | **Number of <br> Securities <br> Underlying <br> Unexercised <br> Options <br> Unexercisable (#)**  | **Option <br> Exercise <br> Price ($)**  | **Option <br> Expiration <br> Date**  |
| Joseph A. Marino <br>8/15/2024<sup>(1)</sup>  | 50000 |  | 5.00 | 8/15/2034  |
| Peter M. Buonomo <br>8/15/2024<sup>(</sup><sup>4)</sup>  | 125000 |  | 5.00 | 8/15/2034  |
| Scott S. Robinson <br>8/15/2024<sup>(</sup><sup>5)</sup>  | 75000 |  | 5.00 | 8/15/2034  |
| 6/5/2018<sup>(6)</sup>  | 25000 |  | 1.00 | 6/4/2028  |

---

(1) All of the options vested on the grant date.

(2) All of the options vested on the grant date.

(3) All of the options vested on the grant date. The options granted vested in three equal installments over a two-year period, with one-third vesting on the grant date and an additional one-third vesting on each of the first and second anniversaries of the grant date. All options are currently fully vested.

(4) All of the options vested on the grant date.

(5) All of the options vested on the grant date.

(6) All of the options vested on the grant date. The options granted vested in three equal installments over

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a two-year period, with one-third vesting on the grant date and an additional one-third vesting on each of the first and second anniversaries of the grant date. All options are currently fully vested.

#### 2018 Stock Incentive Plan
The Encore Medical, Inc. 2018 Stock Incentive Plan ("Plan") was adopted by our board of directors effective January 16, 2018 and will terminate on January 15, 2028. The purpose of the Plan is to enable the Company to retain and attract executives, key technical and functional employees, directors and consultants who contribute to the Company's success by their ability, ingenuity and industry, and to enable such individuals to participate in the long-term success and growth of the Company by giving them a proprietary interest in the Company.

As of September 12, 2025, the total number of shares of common stock reserved for issuance and available for distribution under the Plan is 450,643. The number of shares reserved for issuance under the Plan is automatically increased each time the number of shares available for grant have been granted and are no longer available (the "Reset Date"). On each Reset Date, the number of shares reserved under the Plan is automatically increased to an amount equal to 10% of the total number of shares of common stock outstanding on such date.

As of September 12, 2025, incentive and non-qualified stock options to purchase an aggregate of 463,000 shares of common stock were issued and outstanding at exercise prices of $1.00 to $5.00 per share and which vest over a 3-year period. All of the outstanding stock options are exercisable over a period of 10 years from the date of grant.

Our board of directors or a committee thereof has complete discretion to select Plan optionees and to establish the terms and conditions of each award, subject in all cases to the provisions of the Plan and applicable provisions of the Internal Revenue Code. The current Plan requires that the exercise price of each option granted shall not be less than 100% of fair market value of the common stock as of the date the option is granted. In the event that an optionee is the owner of 10% of the voting power of all class of stock of the Company, the option price shall not be less than 110% of the fair market value. The term of any option granted under the Plan may not exceed ten years.

In addition to stock options, the Plan provides for the award of stock appreciation rights, restricted stock, deferred stock and the allowance of a target grant program. Other than stock options as described above, no such additional awards have been utilized to date.

#### Director Compensation
We currently pay no fees or other compensation for service on the Board or any committee thereof. Non-employee directors of the Company are eligible to participate in stock option programs that we may adopt from time to time. See "Executive Compensation; 2018 Stock Incentive Plan." We may grant non-employee directors non-qualified options to purchase shares of common stock from time to time for their services.

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#### PRINCIPAL SHAREHOLDERS

#### Security Ownership of Principal Shareholders and Management
The following table sets forth information with respect to the beneficial ownership of our common stock as of December , 2025, and as adjusted to reflect the Series A Conversion and the sale of our common stock in this offering, assuming no exercise of the underwriters option to purchase additional shares of common stock, with respect to each person who is known by us to beneficially own more than five percent (5%) of our common stock, by each of our directors and named executive officers, and by all of our directors and officers as a group. Unless otherwise indicated, each person has sole voting and dispositive power over such shares.

The number of shares of capital stock beneficially owned and percentages of beneficial ownership before this offering are based on 7,748,505 shares outstanding on a fully diluted basis as of December , 2025. We have determined beneficial ownership in accordance with the rules of the SEC.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Pre-Offering**  | **Pre-Offering**  | **Post-Offering**  | **Post-Offering**  |
| **Name of Beneficial Owner**  | **Shares <br> Owned**  | **Percent <br> Owned**  | **Shares <br> Owned**  | **Percent <br> Owned**  |
| **Directors and Executive Officers:** |  |  |  |  |
| Joseph A. Marino<sup>(1)</sup>  | 1893395 | 24.4% | 1893395 | 16.9% |
| Peter M. Buonomo<sup>(2)</sup>  | 200000 | 2.6% | 200000 | 1.8% |
| Scott S. Robinson<sup>(3)</sup>  | 100000 | 1.3% | 100000 | 0.9% |
| Christopher J. Turnbull<sup>(4)</sup>  | 305505 | 3.9% | 305505 | 2.7% |
| Todd C. Johnson<sup>(</sup><sup>5</sup><sup>)</sup>  | 750311 | 9.7% | 750311 | 6.7% |
| Executive Officers and Directors as a Group (5 persons)  | 3249211 | 41.9% | 3249211 | 29.0% |

---

(1) Joseph A. Marino is the Chairman, Director, and an executive officer of the Company. The number of shares listed reflects shares held directly and 50,000 shares underlying stock options to purchase common stock, which are exercisable within 60 days of the date of this prospectus. Also includes 1,522,487 shares owned by family members of Joseph A. Marino, all of whom are adults, and over which Mr. Marino does not possess voting control; voting power over such shares follows investment power. The calculation does not include any option to convert notes.

(2) Peter M. Buonomo is the Senior Vice President of the Company. The number of shares listed reflects shares held directly, and 125,000 shares underlying stock options to purchase common stock, which are exercisable within 60 days of the date of this prospectus.

(3) Scott S. Robinson is the Treasurer and an executive officer of the Company. The number of shares listed reflects shares held directly and 100,000 shares underlying stock options to purchase common stock, which are exercisable within 60 days of the date of this prospectus.

(4) Christopher J. Turnbull serves as a director of the Company. The number of shares listed reflects shares held directly and 100,000 shares underlying stock options to purchase common stock, which are exercisable within 60 days of the date of this prospectus. The calculation does not include any option to convert notes.

(5) Todd C. Johnson serves as a director of the Company. The number of shares listed reflects shares held directly and 43,750 shares underlying warrants to purchase common stock related to previous stock offerings. It also includes 10,000 shares and 10,000 shares underlying warrants held by a family member of Todd C. Johnson. The number of shares listed also includes 536,382 shares held by Seagate, LLC, of which Todd C. Johnson is the sole manager.

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#### DESCRIPTION OF SECURITIES

#### General
Our authorized capital stock consists of 20,000,000 shares of common stock, $0.01 par value per share, and 4,000,000 shares of undesignated preferred stock, $0.01 par value per share. As of December , 2025, there were 6,743,425 shares of common stock outstanding, assuming the Series A Conversion immediately prior to the closing of the offering into a total of 876,000 shares of common stock. Upon completion of this offering, no shares of our preferred stock will be designated, issued or outstanding.

The following summary of our capital stock, our amended and restated articles of incorporation, as amended, and our bylaws do not purport to be complete and is qualified in its entirety by reference to the provisions of applicable law and to our amended and restated articles of incorporation, as amended, and bylaws, which are filed as exhibits to the registration statement of which this prospectus is a part.

#### Common Stock
Holders of common stock have no preemptive, subscription, redemption or conversion rights. Cumulative voting for directors is not permitted, but the holders of common stock are entitled to one vote per share in all matters to be voted on by shareholders. Subject to the rights of the holders of any outstanding Preferred Stock, holders of common stock are entitled to receive dividends legally available therefore, when, as and if declared by the Board of Directors and, upon liquidation or dissolution of the Company, whether voluntary or involuntary, to share equally in the assets of the Company available for distribution to the shareholders. The Company has never paid a cash dividend on its common stock and does not intend to pay dividends in the foreseeable future. The Company's present intention is to retain all future earnings for use in its business. All shares of common stock presently outstanding are fully paid and non-assessable. The Board of Directors is authorized to issue additional shares of common stock, but not to exceed the amount authorized by the Company's Articles, and to issue options and warrants for the purchase of such shares, on such terms and conditions and for such consideration as the Board may deem appropriate without further shareholder action.

#### Warrants
As of December , 2025, the Company currently has 542,080 issued and outstanding warrants exercisable into common stock related to previous stock purchase offerings. The warrants have an average exercise price of $8.75 and an average term of 8 years.

#### Anti-Takeover Effects of Provisions of the Articles of Incorporation, the Bylaws and Applicable Law
Our amended and restated articles of incorporation, as amended, bylaws, and the laws of the State of Minnesota contain provisions that could make it more difficult to acquire us by means of a tender offer, a proxy contest or otherwise, or to remove incumbent officers and directors. These provisions, summarized below, are intended to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our Board. However, these provisions may delay, deter, or prevent a merger or acquisition of us that a stockholder might consider is in their best interest or in our best interests, including transactions that might result in a premium over the prevailing market price of common stock.

#### Authorized but Unissued Capital Stock
The authorized but unissued shares of common stock are available for future issuance without stockholder approval, subject to any limitations imposed by the listing standards of the NYSE American. These additional shares may be used for a variety of corporate finance transactions, acquisitions, and employee benefit plans. Moreover, our board of directors may generally issue shares of one or more series of preferred stock on terms that could discourage, delay or prevent a change of control of the Company or the removal of our management.

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#### Board Classification
Upon the completion of this offering, our bylaws will provide that all members of our board of directors will be elected annually and serve one-year terms. As a result, stockholders can vote on the entire board of directors each year, which may facilitate changes in the board's composition through the annual election process.

#### Board Vacancies and Newly Created Directorships
Our bylaws provide that any vacancies on our board of directors, and any newly created directorships, will be filled by the affirmative vote of a majority of the directors then in office.

#### No Cumulative Voting
Our amended and restated articles of incorporation do not authorize cumulative voting.

#### Advance Notice Requirements for Director Nominations and Stockholder Proposals
Our bylaws establish advance notice procedures with respect to stockholder proposals and the nomination of candidates for election as directors, other than nominations made by or at the direction of the board of directors or a committee of the board of directors.

#### Minnesota Corporate Law
We are subject to the provisions of Section 302A.671 and 302A.673 of the Minnesota Business Corporation Act, which may deny shareholders the receipt of a premium on their capital stock, and which may also have a depressive effect on the market price of our common stock. In general, Section 302A.671 provides that the shares of an issuing public corporation acquired in a "control share acquisition" have no voting rights unless voting rights are approved in a prescribed manner. A "control share acquisition" is an acquisition, directly or indirectly, of beneficial ownership of shares that would, when added to all other shares beneficially owned by the acquiring person, entitle the acquiring person to have voting power of 20% or more in the election of directors, or to increase such acquiring person's voting power from less than 33<sup>1</sup>∕3% to more than 33<sup>1</sup>∕3% but less than 50%, or to increase such person's voting power from less than 50% to more than 50%.

In general, Section 302A.673 prohibits an issuing public corporation from engaging in a "business combination" with an "interested shareholder" for a period of four years after the date of the transaction in which the person became an interested shareholder, unless the business combination is approved in a prescribed manner. "Business combination" includes mergers, asset sales and other transactions resulting in a financial benefit to the interested shareholder. An "interested shareholder" is a person who is the beneficial owner, directly or indirectly, of 10% or more of the corporation's voting stock or who is an affiliate or associate of the corporation and at any time within four years prior to the date in question was the beneficial owner, directly or indirectly, of 10% or more of the corporation's voting stock.

#### Transfer Agent
The Company has retained the services of American Stock Transfer (Equiniti) to act as Transfer Agent for our common stock.

#### Trading Symbol and Market
We have applied for listing of our common stock on the NYSE American Market under the symbol "EMI."

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#### SHARES ELIGIBLE FOR FUTURE SALE
Prior to this offering, there was no public market for our common stock, and a liquid trading market for our common stock may not develop or be sustained after this offering. Future sales of substantial amounts of common stock in the public market, or the perception that such sales may occur, could adversely affect the market price of our common stock. Although we have applied to list our common stock listed on NYSE American, we cannot assure you that there will be an active public market for our common stock.

Upon the closing of this offering, we will have outstanding an aggregate of 9,743,425 shares of common stock, or 10,193,425 shares of common stock if the underwriters exercise their option to purchase additional shares in full, assuming an initial public offering price of $5.00 per share. Of these shares, all shares sold in this offering will be freely tradable without restriction or further registration under the Securities Act, except for any shares purchased by our "affiliates," as that term is defined in Rule 144 under the Securities Act, whose sales would be subject to the Rule 144 resale restrictions described below, other than the holding period requirement.

The remaining shares of common stock will be "restricted securities," as that term is defined in Rule 144 under the Securities Act. These restricted securities are eligible for public sale only if they are registered under the Securities Act or if they qualify for an exemption from registration under the Securities Act.

#### Lock-Up Arrangements
In connection with this offering, we have agreed that, without the prior written consent of the Representative, we will not, for a period of one hundred eighty (180) days after the closing of the offering (the "Lock-Up Period"), (i) offer, pledge, announce the intention to sell, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, make any short sale or otherwise transfer or dispose of, directly or indirectly, any shares of capital stock of the Company or any securities convertible into, exercisable or exchangeable for, or that represent the right to receive, shares of capital stock of the Company (including without limitation, shares of common stock issuable upon exercise of stock options or warrants), whether now owned or hereafter acquired; (ii) enter into any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of such securities, whether any such transaction is to be settled by delivery of capital stock or such other securities, in cash or otherwise; (iii) make any demand for or exercise any right with respect to the registration of any such securities; or (iv) publicly disclose the intention to do any of the foregoing.

Additionally, our directors and officers and any other holder(s) of 2% or more of the outstanding shares of common stock as of the effective date of the Registration Statement (including all holders of securities exercisable for or convertible into shares of common stock) have agreed not to, for a period of one hundred eighty (180) days after the closing of the offering, engage in any of the transactions described above with respect to any of their securities, subject to customary exceptions, including but not limited to bona fide gifts, estate planning transfers, transfers by will or operation of law, transfers to affiliates, and certain exercises of stock options or tax withholding arrangements, provided that the transferee agrees to be bound by the same restrictions and no public filings are made prior to expiration of the Lock-Up Period.

#### Rule 144
In general, under Rule 144 as currently in effect, once we have been subject to public company reporting requirements of Section 13 or Section 15(d) of the Exchange Act for at least 90 days, an eligible shareholder is entitled to sell such shares without complying with the manner of sale, volume limitation or notice provisions of Rule 144, subject to compliance with the current public information requirements of Rule 144. To be an eligible shareholder under Rule 144, such shareholder must not be deemed to have been one of our affiliates for purposes of the Securities Act at any time during the 90 days preceding a sale and must have beneficially owned the shares proposed to be sold for at least six months, including the holding period of any prior owner other than our affiliates. If such a person has beneficially owned the shares proposed to be sold for at least one year, including the holding period of any prior owner other than our affiliates, then

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such person is entitled to sell such shares without complying with any of the requirements of Rule 144, subject to the expiration of the lock-up agreements described below.

In general, under Rule 144, as currently in effect, our affiliates or persons selling shares on behalf of our affiliates are entitled to sell shares on expiration of the lock-up agreements described above, subject, in the case of restricted securities, to such shares having been beneficially owned for at least six months. Beginning 90 days after the date of this prospectus, within any three-month period, such shareholders may sell a number of shares that does not exceed the greater of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • 1% of the number of common stock then outstanding, which will equal approximately 97,434 shares immediately after this offering, assuming no exercise of the underwriters' option to purchase additional shares of common stock from us; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the average weekly trading volume of our common stock during the four calendar weeks preceding the filing of a notice on Form 144 with respect to such sale.

Sales under Rule 144 by our affiliates or persons selling shares on behalf of our affiliates are also subject to certain manner of sale provisions and notice requirements and to the availability of current public information about us.

#### Rule 701
Rule 701 generally allows a shareholder who was issued shares under a written compensatory plan or contract and who is not deemed to have been an affiliate of our company during the immediately preceding 90 days, to sell these shares in reliance on Rule 144, but without being required to comply with the public information, holding period, volume limitation or notice provisions of Rule 144. Rule 701 also permits affiliates of our company to sell their Rule 701 shares under Rule 144 without complying with the holding period requirements of Rule 144. All holders of Rule 701 shares, however, are required by that rule to wait until 90 days after the date of this prospectus before selling those shares under Rule 701, subject to the expiration of the lock-up agreements described below.

#### Form S-8 Registration Statements
We intend to file one or more registration statements on Form S-8 under the Securities Act with the SEC to register the offer and sale of shares of our common stock that are issuable under the Encore Medical, Inc. 2018 Stock Incentive Plan. These registration statements will become effective immediately on filing. Shares covered by these registration statements will then be eligible for sale in the public markets, subject to vesting restrictions, any applicable lock-up agreements described herein, and Rule 144 limitations applicable to affiliates.

#### 10b5-1 Plans
After the offering, certain of our employees, including our executive officers, and/or directors may enter into written trading plans that are intended to comply with Rule 10b5-1 under the Securities Exchange Act of 1934. Sales under these trading plans would not be permitted until the expiration of the lock-up agreements relating to the offering described herein.

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#### PLAN OF DISTRIBUTION
The Company and the underwriters named below have entered into an underwriting agreement with respect to the shares of common stock being offered by the Company. Subject to certain conditions, we have agreed to issue and sell to the underwriters, and the underwriters have agreed to purchase, at the public offering price less the underwriting discounts set forth on the cover page of this prospectus, the number of shares listed next to its name in the following table:

---

| | |
|:---|:---|
| | **Number of Shares**  |
| The Oak Ridge Financial Services Group, Inc.  | [ ] |
| Dawson James Securities, Inc.  | [ ] |
| Total  | [ ] |

---

The Oak Ridge Financial Services Group, Inc. is the representative of the underwriters. The underwriters are obligated to take and pay for all of the shares of common stock offered by this prospectus if any such shares are taken. However, the underwriters are not required to take or pay for the shares covered by the underwriters' over-allotment option described below. Furthermore, pursuant to the underwriting agreement, the underwriters' obligations are subject to customary conditions, representations and warranties contained in the underwriting agreement, such as receipt by the underwriters of officers' certificates and legal opinions.

We have granted the underwriters an over-allotment option to purchase up to an additional 450,000 shares of common stock (fifteen (15%) of the shares of common stock sold in this offering) from the Company, at the public offering price listed on the cover page of this prospectus, less the underwriting discounts and commissions. They may exercise this option for 45 days from the date of this prospectus. If any shares are purchased pursuant to this option, the underwriters will severally purchase shares in approximately the same proportion as set forth in the table above.

The following table shows the public offering price, underwriting discount and proceeds before expenses to us. The information assumes both no exercise and full exercise the underwriters' over-allotment option to purchase additional shares.

---

| | | | |
|:---|:---|:---|:---|
| | **Per Share**  | **Without <br> Over-allotment <br> Option**  | **With <br> Over-allotment <br> Option**  |
| Public offering price  | $5.00 | $15000000 | $17250000 |
| Underwriting discount<sup>(1)</sup>  | $.40 | $1200000 | $1380000 |
| Proceeds, before expenses, to us  | $4.60 | $13800000 | $15870000 |

---

(1) Represents an underwriter discount equal to 8% per share. The fees do not include the Underwriters' Warrants described below under "Plan of Distribution — Underwriters' Warrants" or the reimbursement by us of certain expenses as described immediately below.

We have agreed to reimburse the underwriters for certain actual accountable expenses incurred and relating to the offering including but not limited to the following: (a) the fees and expenses of the Representatives' legal counsel, (b) the costs associated with the underwriter's use of Ipreo's book-building, prospectus tracking and compliance software for the offering; (c) the underwriters' actual accountable "road show" expenses; and (d) the Representative's market making and trading, and clearing firm settlement expenses for the offering.. We have agreed to pay the Representative a $25,000 non-refundable advance for its anticipated out-of-pocket costs.

We have also agreed to pay the Representative a non-accountable expense allowance equal to one percent (1.0%) of the gross proceeds received from the sale of shares of common stock. The non-accountable expense allowance will be paid through a deduction from the net proceeds of the offering.

The expenses of this offering, not including the underwriting discount, are estimated at $800,000 and are payable by us.

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We have agreed to indemnify the underwriters against certain liabilities, including liabilities under the Securities Act, or to contribute to payments the underwriters may be required to make in respect of those liabilities.

#### Discounts and Other Compensation
The following table shows the underwriting discounts and other compensation that we are to pay to the underwriters in connection with this offering. These amounts are shown assuming both no exercise and full exercise of the underwriters' over-allotment option.

---

| | | |
|:---|:---|:---|
| | **Without <br> Over-allotment <br> Option**  | **With <br> Over-allotment <br> Option**  |
| Underwriting discount<sup>(1)</sup>  | $1200000 | $1380000 |
| Other<sup>(2)</sup> | $270000 | $270000 |
| Total  | $1470000 | $1650000 |

---

(1) Does not reflect the reimbursement by us of certain expenses as described above.

(2) We will grant to the Underwriters a warrant to purchase a number of shares of common stock equal to eight percent (8%) of the shares of common stock sold by us in the offering (the "Underwriters' Warrants") at an exercise price equal to 120% of the initial public offering price. The Underwriters' Warrants will be considered underwriting compensation in connection with this offering and, in accordance with FINRA Rule 5110, have been given a value of $270,000. Such valuation relates solely to such Underwriters' Warrants for purposes of FINRA Rule 5110 and does not reflect an actual value that may be ascribed to the Underwriters Warrants in the marketplace.

#### Underwriters' Warrants
In conjunction with the offering, the Company will grant to the Underwriters a warrant to purchase a number of shares of common stock equal to eight percent (8%) of the shares of common stock sold by the Company in the offering (the "Underwriters' Warrants"). The Underwriters' Warrants will first become exercisable one (1) year after the effective date of the offering and will be exercisable for a period of four (4) years thereafter at a price equal to 120% of the initial public offering price. The Underwriters' Warrant will not be transferable except in accordance with applicable securities regulations. The Underwriters' Warrant will contain customary anti-dilution provisions and will provide for "piggyback" registration rights with respect to the shares of common stock underlying the Underwriters' Warrant (the "Warrant Shares"), for up to two (2) registrations by the Company and at the Company's expense. All underwriting discounts and commissions attributable to any Warrant Shares being so registered will be borne by the selling party; and any fees and expenses of counsel for the selling shareholders will be payable by such shareholders pro rata. The Underwriters' Warrant will provide for the cash-less exercise of the Underwriters' Warrant.

The Underwriters' Warrants are deemed underwriter compensation by FINRA and are therefore subject to an 180-day lock-up pursuant to FINRA Rule 5110(g)(1). The Underwriters or their respective designees (or their permitted assignees under Rule 5110(g)(1)) will not sell, transfer, assign, pledge, or hypothecate these warrants or the securities underlying these warrants, nor will they engage in any hedging, short sale, derivative, put, or call transaction that would result in the effective economic disposition of the warrants or the underlying securities for a period of 180 days following the commencement of sales pursuant to this prospectus.

#### Lock-Up Agreements
We and our executive officers, directors and shareholders holding 2% or more of the company's outstanding common stock have agreed with the underwriters, subject to certain exceptions, not to sell or transfer any common stock or securities convertible into or exchangeable for shares of common stock during the period from the date of this prospectus continuing through the date 180 days after the date of this prospectus (the "Restricted Period"), except with the prior written consent of the representative.

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#### Listing
We have applied to list our common stock for trading on the NYSE American under the symbol "EMI." We cannot guarantee that our common stock will be approved for listing on NYSE American. However, the consummation of this offering and the distribution are contingent on such approval. We will not consummate this offering or the distribution unless our common stock is so listed.

#### Offering Price
Before this offering, there has been no public market for our common stock. The initial public offering price has been negotiated between us and the Representative. In addition to prevailing market conditions, the factors to be considered in determining the initial public offering price will be:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the valuation multiples of publicly traded companies that the Representative believes to be comparable to us;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • our financial information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the history of, and the prospects for, our Company and the industry in which we compete;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • an assessment of our management, its past and present operations, and the prospects for, and timing of, our future revenues;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the present state of our development; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • the above factors in relation to market values and various valuation measures of other companies engaged in activities similar to ours.

An active trading market for the shares of common stock may not develop. It is also possible that after this offering the shares of common stock will not trade in the public market at or above the initial public offering price.

#### Price Stabilization, Short Positions and Penalty Bids
Until the distribution of the shares is completed, SEC rules may limit underwriters and selling group members from bidding for and purchasing our common stock. However, the Representative may engage in transactions that stabilize the price of the common stock, such as bids or purchases to peg, fix or maintain that price.

The underwriters may also impose a penalty bid. This occurs when a particular underwriter repays to the underwriters a portion of the underwriting discount received by it because the representatives have repurchased shares sold by or for the account of such underwriter in stabilizing or short covering transactions.

Similar to other purchase transactions, the underwriters' purchases to cover the syndicate short sales may have the effect of raising or maintaining the market price of shares of our common stock or preventing

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or retarding a decline in the market price of shares of our common stock. As a result, the price of shares of our common stock may be higher than the price that might otherwise exist in the open market. The underwriters may conduct these transactions on NYSE American, in the over-the-counter market or otherwise.

Neither we nor any of the underwriters make any representation or prediction as to the direction or magnitude of any effect that the transactions described above may have on the price of shares of our common stock. In addition, neither we nor any of the underwriters make any representation that the representatives will engage in these transactions or that these transactions, once commenced, will not be discontinued without notice.

#### Electronic Distribution
A prospectus in electronic format may be made available on the websites maintained by one or more of the underwriters or selling group members. The Representative may agree to allocate a number of securities to underwriters and selling group members for sale to its online brokerage account holders. Internet distributions will be allocated by the underwriters and selling group members who will make internet distributions on the same basis as other allocations. Other than the prospectus in electronic format, the information on these websites is not part of, nor incorporated by reference into, this prospectus or the registration statement of which this prospectus forms a part, has not been approved or endorsed by us, and should not be relied upon by investors.

#### Other Relationships
The underwriters and their respective affiliates are full-service financial institutions engaged in various activities, which may include securities trading, commercial and investment banking, financial advisory, investment management, investment research, principal investment, hedging, financing and brokerage activities. Certain of the underwriters and their affiliates have, from time to time, provided, and may, in the future, provide investment and commercial banking and financial advisory services to us and our affiliates in the ordinary course of business, for which they received or will receive customary fees and commissions. In the ordinary course of their various business activities, the underwriters and their respective affiliates may make or hold a broad array of investments and actively trade debt and equity securities (or related derivative securities) and financial instruments (including bank loans) for their own account and for the accounts of their customers, and such investment and securities activities may involve securities and/or instruments of ours. The underwriters and their respective affiliates may also make investment recommendations and/or publish or express independent research views in respect of such securities or instruments and may at any time hold, or recommend to clients that they acquire, long and/or short positions in such securities and instruments.

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#### MATERIAL U.S. FEDERAL INCOME TAX CONSIDERATIONS FOR NON-U.S. HOLDERS OF COMMON STOCK
The following is a general discussion of the material U.S. federal income tax consequences applicable to non-U.S. holders (as defined below) of the purchase, ownership and disposition of our common stock. This discussion is based upon the Internal Revenue Code of 1986, as amended (the "Code"), applicable Treasury Regulations, administrative rulings and judicial decisions as of the date of this prospectus, all of which are subject to change or differing interpretations, possibly with retroactive effect.

This discussion does not address all aspects of U.S. federal income taxation that may be relevant to a non-U.S. holder in light of its particular circumstances, nor does it address any state, local or foreign tax laws. Prospective non-U.S. investors should consult their own tax advisors regarding the U.S. federal, state, local and non-U.S. tax consequences of the acquisition, ownership and disposition of shares.

A "non-U.S. holder" is a beneficial owner of our common stock or warrants (other than a partnership or entity treated as a partnership for U.S. federal income tax purposes) that is not, for U.S. federal income tax purposes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • an individual who is a citizen or resident of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a corporation (or other entity treated as a corporation for U.S. federal income tax purposes) created or organized in or under the laws of the United States or any political subdivision thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • an estate the income of which is subject to U.S. federal income taxation regardless of its source; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • a trust if it (i) is subject to the primary supervision of a court within the United States and one or more U.S. persons have authority to control all substantial decisions of the trust or (ii) has a valid election in effect under applicable Treasury Regulations to be treated as a U.S. person.

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#### LEGAL MATTERS
Certain legal matters relating to the offering as to U.S. federal law and the law of the State of Minnesota in connection with this offering will be passed upon for us by Holland & Hart LLP, Denver, CO. Certain legal matters will be passed on for the underwriters by Maslon LLP, Minneapolis, MN.

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#### EXPERTS
The financial statements of the Company as of and for the fiscal years ended December 31, 2024 and 2023 included in this prospectus have been audited by Boulay, PLLP, independent registered public accounting firm as set forth in their report thereon appearing elsewhere herein, and included in reliance on such report upon the authority of said firm as experts in accounting and auditing.

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#### WHERE YOU CAN FIND MORE INFORMATION
We have filed with the SEC a registration statement on Form S-1 under the Securities Act with respect to the shares of common stock offered hereby. This prospectus, which constitutes a part of the registration statement, does not contain all of the information set forth in the registration statement or the exhibits filed therewith. For further information about us and the shares of common stock offered hereby, reference is made to the registration statement and the exhibits filed therewith. Statements contained in this prospectus regarding the contents of any contract or any other document that is filed as an exhibit to the registration statement are not necessarily complete, and in each instance, we refer you to the copy of such contract or other document filed as an exhibit to the registration statement.

Upon completion of this offering, we will be subject to the information and reporting requirements of the Exchange Act and will file annual, quarterly, and current reports, proxy statements, and other information with the SEC. You can read our U.S. Securities and Exchange Commission filings, including the registration statement, online at *www.sec.gov*.

We also maintain a website at https://www.encore-medical.com, at which, following the completion of this offering, you may access these materials free of charge as soon as reasonably practicable after they are electronically filed with, or furnished to, the SEC. Information contained on our website is not a part of this prospectus, and the inclusion of our website address in this prospectus is an inactive textual reference only.

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#### Index to Financial Statements

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| | |
|:---|:---|
| [REPORT OF INDEPENDENT PUBLIC ACCOUNTING FIRM](#tfRIP)  | [F-2](#tfRIP) |
| [BALANCE SHEETS](#tfBAL)  | [F-4](#tfBAL) |
| [STATEMENTS OF OPERATIONS](#tfSTOF)  | [F-5](#tfSTOF) |
| [STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)](#tfSTOSE)  | [F-6](#tfSTOSE) |
| [STATEMENTS OF CASH FLOWS](#tfSOCF)  | [F-7](#tfSOCF) |
| [NOTES TO FINANCIAL STATEMENTS](#tfNTFS)  | [F-8](#tfNTFS) |

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![[MISSING IMAGE: lg_boulay-4c.jpg]](lg_boulay-4c.jpg)

#### REPORT OF INDEPENDENT PUBLIC ACCOUNTING FIRM
To the Stockholders and the Board of Directors

of Encore Medical, Inc.

#### Opinion on the Financial Statements
We have audited the accompanying balance sheets of Encore Medical, Inc. (the Company) as of December 31, 2024 and 2023, and the related statements of operations, stockholders' equity (deficit) and cash flows for the two years then ended, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for the two years then ended in conformity with accounting principles generally accepted in the United States of America.

#### Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company 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 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 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 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 financial statements. We believe that our audits provide a reasonable basis for our opinion.

#### Substantial Doubt about the Company's Ability to Continue as a Going Concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has incurred net losses

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and negative operating cash flows for the years ended December 31, 2024 and 2023 and has negative working capital as of December 31, 2024. These factors raise substantial doubt about the Company's ability to continue as a going concern for a period of one year from the issuance of the financial statements. Management's evaluation of the events and conditions and management's plans regarding those matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. Our opinion is not modified with respect to that matter.

![[MISSING IMAGE: sg_boulaypllp-bw.jpg]](sg_boulaypllp-bw.jpg)

We have served as the Company's auditor since 2024. Minneapolis,

Minnesota

September 4, 2025

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#### ENCORE MEDICAL, INC.

#### B alance Sheets

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| | | | |
|:---|:---|:---|:---|
| | **December 31,**  | **December 31,**  | **September 30, <br> 2025**  |
| | **2024**  | **2023**  | **September 30, <br> 2025**  |
|  |  |  | **(Unaudited)**  |
| ASSETS  |  |  |  |
| Current assets |  |  |  |
| Cash  | $246829 | $305272 | $— |
| Accounts receivable  | 349472 |  | 330225 |
| Accounts receivable – related party  |  | 381727 |  |
| Inventory  | 373598 | 466160 | 559695 |
| Prepaid expenses and other current assets  | 40564 | 25044 | 17856 |
| Total Current Assets  | 1010463 | 1178202 | 907775 |
| Property and Equipment  | 37443 | 43600 | 33308 |
| Operating Lease Right-of-Use Asset  | 402149 | 471107 | 345989 |
| &nbsp;&nbsp;&nbsp; TOTAL ASSETS  | $1450054 | $1692909 | $1287073 |
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)  |  |  |  |
| Current liabilities |  |  |  |
| Accounts payable  | $417424 | $88453 | $555249 |
| Accounts payable – related party  |  |  | 95499 |
| Accrued interest  | 92396 | 16658 | 152628 |
| Accrued Expenses  | 377313 | 219205 | 230008 |
| Short term debt  | 50000 | 45625 | 220753 |
| Current operating lease liability  | 74144 | 64024 | 82515 |
| Total current liabilities  | 1011278 | 433965 | 1306653 |
| Long term debt  | 1000000 | 1000000 | 1000000 |
| Non-current operating lease liability  | 346772 | 420916 | 283700 |
| &nbsp;&nbsp;&nbsp; Total liabilities  | $2358049 | $1854880 | $2590353 |
| Commitments and contingent liabilities (Note 13) |  |  |  |
| Stockholders' Equity (Deficit) |  |  |  |
|  Series A Preferred Stock, par value $0.01, 1,200,000 shares authorized at December 31, 2024 and 2023 and September 30, 2025 (unaudited); 876,000 shares issued and outstanding as of December 31, 2024, and 2023 and September 30, 2025 (unaudited)  | 8760 | 8760 | 8760 |
|  Common Stock, par value $0.01, 10,000,000 shares authorized at December 31, 2024 and 2023 and September 30, 2025 (unaudited); 5,717,425, 5,636,425 and 5,867,425 shares issued and outstanding as of December 31, 2024 and 2023 and September 30, 2025 (unaudited)  | 57174 | 56364 | 58674 |
| Additional paid in capital  | 4916950 | 3817833 | 5077731 |
| Accumulated deficit  | (5890880) | (4044929) | (6448446) |
| &nbsp;&nbsp;&nbsp; Total stockholders' equity (deficit)  | (907995) | (161972) | (1303280) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)  | $1450054 | $1692909 | $1287073 |

---

The accompanying notes are an integral part of these financial statements.

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#### ENCORE MEDICAL, INC.

#### S tatements of Operations

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **For the Year Ended <br> December 31,**  | **For the Year Ended <br> December 31,**  | **For the Nine Months Ended <br>September 30,**  | **For the Nine Months Ended <br>September 30,**  |
| | **2024**  | **2023**  | **2025**  | **2024**  |
|  |  |  | **(unaudited)**  | **(unaudited)**  |
| **Net Sales**  | $2134528 | $1434424 | $1290395 | $1543721 |
| **Cost of goods sold**  | 1361077 | 912078 | 873080 | 1022170 |
| **Gross profit**  | 773451 | 522346 | 417315 | 521551 |
| **Operating expenses** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Selling, general and administrative  | 1555653 | 1211152 | 778912 | 755062 |
| &nbsp;&nbsp;&nbsp; Stock compensation expense  | 696101 | 7936 | 12281 | 690926 |
| Clinical trial expense  | 142672 | 550570 | 62729 | 128088 |
| &nbsp;&nbsp;&nbsp; Regulatory expense  | 145297 | 124421 | 57974 | 58267 |
| **Total operating expenses**  | 2539723 | 1894079 | 911896 | 1632343 |
| **Operating loss**  | (1766272) | (1371733) | (494581) | (1110792) |
| Non-operating expense |  |  |  |  |
| Interest expense  | 79679 | 15124 | 62985 | 62825 |
| &nbsp;&nbsp;&nbsp; Total non-operating expense  | 79679 | 15124 | 62985 | 62825 |
| **Net loss before income taxes**  | (1845951) | (1386857) | (557566) | (1173616) |
| Income taxes  |  |  |  |  |
| **Net Loss**  | $(1845951) | $(1386857) | $(557566) | $(1173616) |
| Net loss per share – basic and diluted  | $(0.33) | $(0.25) | $(0.10) | $(0.21) |
|  Weighted average common shares outstanding – basic <br> and diluted  | 5661954 | 5636425 | 5810282 | 5643286 |

---

The accompanying notes are an integral part of these financial statements.

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#### ENCORE MEDICAL, INC.

#### S tatements of Stockholders' Equity (Deficit)

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Series A <br> Preferred Stock**  | **Series A <br> Preferred Stock**  | **Common Shares**  | **Common Shares**  | **APIC**  | **Accumulated <br> Deficit**  | **Total**  |
| | **Shares**  | **Amount**  | **Shares**  | **Amount**  | **APIC**  | **Accumulated <br> Deficit**  | **Total**  |
| **Balance, December 31, 2022**  | **876000** | **8760** | **5636425** | $**56364** | $**3809897** | $**(2658072)** | $**1216949** |
| Stock Based Compensation  |  |  |  |  | 7936 |  | 7936 |
| Net loss  |  |  |  |  |  | (1386857) | (1386857) |
| **Balance, December 31, 2023**  | **876000** | $**8760** | **5636425** | $**56364** | $**3817833** | $**(4044929)** | $**(161972)** |
| Stock Based Compensation  |  |  |  |  | 696101 |  | 696101 |
|  Sale of Common Stock, net of sales expense  |  |  | 81000 | 810 | 403016 |  | 403826 |
| Net loss  |  |  |  |  |  | (1845951) | (1845951) |
| **Balance, December 31, 2024**  | **876000** | $**8760** | **5717425** | $**57174** | $**4916950** | $**(5890880)** | $**(907995)** |
|  Stock Based Compensation (unaudited)  |  |  |  |  | 12281 |  | 12281 |
|  Exercise of Stock Options (unaudited)  |  |  | 150000 | $1500 | 148500 |  | 150000 |
| Net loss (unaudited)  |  |  |  |  |  | (557566) | (240750) |
|  **Balance, September 30, 2025 (unaudited)**  | **876000** | $**8760** | **5867425** | $**58674** | $**5077731** | $**(6448446)** | $**(1303280)** |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Series A <br> Preferred Stock**  | **Series A <br> Preferred Stock**  | **Common Shares**  | **Common Shares**  | **APIC**  | **Accumulated <br> Deficit**  | **Total**  |
| | **Shares**  | **Amount**  | **Shares**  | **Amount**  | **APIC**  | **Accumulated <br> Deficit**  | **Total**  |
| **Balance, December 31, 2023**  | **876000** | $**8760** | **5636425** | $**56364** | $**3817833** | $**(4044929)** | $**(161972)** |
|  Stock Based Compensation (unaudited)  |  |  |  |  | 690926 |  | 690926 |
|  Sale of Common Stock, net of sales expense (unaudited)  |  |  | 56000 | 560 | 279410 |  | 279970 |
| Net loss (unaudited)  |  |  |  |  |  | (1173616) | (1173616) |
|  **Balance, September 30, 2024 <br> (unaudited)**  | **876000** | $**8760** | **5692425** | $**56924** | $**4788169** | $**(5218545)** | $**(364692)** |

---

The accompanying notes are an integral part of these financial statements.

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#### ENCORE MEDICAL, INC.

#### S tatements of Cash Flows

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year Ended <br> December 31,**  | **Year Ended <br> December 31,**  | **Nine Months Ended <br>September 30,**  | **Nine Months Ended <br>September 30,**  |
| | **2024**  | **2023**  | **2025**  | **2024**  |
|  |  |  | **(unaudited)**  | **(unaudited)**  |
|  CASH FLOWS FROM OPERATING ACTIVITIES  |  |  |  |  |
| Net loss  | $(1845951) | $(1386857) | $(557566) | $(1173616) |
|  Adjustments to reconcile net loss to net cash used in <br> operating activities:  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Depreciation  | 6157 | 6161 | 4634 | 4618 |
| &nbsp;&nbsp;&nbsp; Amortization of debt discount  | 4375 | 625 |  | 3750 |
| &nbsp;&nbsp;&nbsp; Stock based compensation  | 696101 | 7936 | 12281 | 690926 |
| &nbsp;&nbsp;&nbsp; Non-cash lease expense  | 4935 | 13832 | 1459 | 3901 |
| &nbsp;&nbsp;&nbsp; Accounts receivable  | (349472) |  | 19247 | (248264) |
| &nbsp;&nbsp;&nbsp; Accounts receivable – related party  | 381727 | 18171 |  | (130270) |
| &nbsp;&nbsp;&nbsp; Inventory  | 92562 | (466160) | (186098) | 44340 |
| &nbsp;&nbsp;&nbsp; Prepaid expenses and other current assets  | (15521) | (16455) | 22709 | 14027 |
| &nbsp;&nbsp;&nbsp; Accounts payable  | 328971 | 46470 | 137825 | 146032 |
| &nbsp;&nbsp;&nbsp; Accounts payable – related party  |  |  | 65499 |  |
| &nbsp;&nbsp;&nbsp; Accrued interest  | 75738 | 16658 | 60232 | 56301 |
| &nbsp;&nbsp;&nbsp; Accrued Expenses  | 158108 | 99157 | 2695 | 213507 |
| Net Cash Used in Operating Activities  | (462269) | (1660462) | (417082) | (384749) |
|  CASH FLOWS FROM INVESTING ACTIVITIES  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Purchases of property and equipment  |  | (12088) | (500) |  |
| Net Cash Used in Investing Activities  |  | (12088) | (500) |  |
|  CASH FLOWS FROM FINANCING ACTIVITIES  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Proceeds from short term debt  |  | 50000 | 170753 |  |
| &nbsp;&nbsp;&nbsp; Deferred financing costs  |  | (5000) |  |  |
| &nbsp;&nbsp;&nbsp; Proceeds from long term debt  |  | 1000000 |  |  |
| &nbsp;&nbsp;&nbsp; Proceeds from sale of common stock  | 403826 |  |  | 279790 |
| &nbsp;&nbsp;&nbsp; Proceeds from issuance of Series A Preferred <br> Stock  |  |  |  |  |
| Net Cash Provided by Financing Activities  | 403826 | 1045000 | 170753 | 279970 |
| Net Decrease in Cash  | (58443) | (627550) | (246829) | (104779) |
| Cash at Beginning of Period  | 305272 | 932821 | 246829 | 305272 |
| Cash at End of Period  | $246829 | $305272 | $0 | $200493 |
|  <u>SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:</u>  |  |  |  |  |
| Cash paid during the year for: |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Interest  | $— | $— | $— | $— |
| &nbsp;&nbsp;&nbsp; Income taxes paid  | $— | $— | $— | $— |
|  <u>SUPPLEMENTAL DISCLOSURES OF</u> <br> <u>NON-CASH INVESTING AND FINANCING</u> <br> <u>ACTIVITIES</u>  |  |  |  |  |
|  Noncash stock option exercise in lieu of accrued payroll due to officer  |  |  | $150000 |  |

---

The accompanying notes are an integral part of these financial statements.

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#### ENCORE MEDICAL, INC.

#### NOTES TO FINANCIAL STATEMENTS

#### Note 1. Nature of Business

#### Nature of Business:
Encore Medical, Inc. (the "Company") develops, manufactures, and markets septal occlusion products, which are small, implantable devices delivered through a catheter inserted into a major blood vessel to permanently repair certain cardiac defects. To date, the Company's products have been implanted in approximately 35,000 patients outside the United States. Procedures are performed in a cardiac catheterization lab and reduce the need for open-heart surgery or a lifetime of drug therapy, which are currently the alternative methods of treating these defects.

Encore Medical, Inc. was formed in 2017 as a subsidiary of Cardia, Inc., ("Cardia") in Eagan, Minnesota. As of October 1, 2020, Encore ceased to be a subsidiary of Cardia pursuant to a tax-free spin-off to shareholders under section 355 of the Internal Revenue Code of 1986, as amended.

The Company has obtained CE Mark approval for its products, which is a prerequisite for the general sale of medical devices in the European Union and is currently marketing and selling septal occlusion devices for the closure of certain cardiac defects in countries outside the United States.

Currently, the Company does not have regulatory approval to sell its products in the United States. However, the Company has completed significant steps required to obtain Class III market clearance for its patent foramen ovale ("PFO") septal occlusion device through the United States Food and Drug Administration's (the "FDA") investigational device exemptions ("IDE")/premarket approval ("PMA") application process. Such FDA approval will allow the Company to market its products throughout the United States.

#### Liquidity and Capital Resources
As of December 31, 2024, the Company had cash of $246,829 and working capital of $(815), compared to cash of $305,272 and working capital of $744,965 as of December 31, 2023. The decrease in cash was primarily attributable to the use of cash in operations. As of September 30, 2025 (unaudited), the Company had cash of $0 and negative working capital of $(398,878). The Company's primary sources of liquidity are cash on hand, cash generated from operations, and management of short-term payables and accruals.

#### Going Concern Considerations
The Company has incurred recurring losses from operations and had a net loss of $(1,845,951) and negative operating cash flows of $(462,269) for the year ended December 31, 2024. As of December 31, 2024, the Company had an accumulated deficit of $5,890,880. For the nine months ended September 30, 2025 (unaudited) the Company had a net loss of $(557,566) and negative operating cash flows of $(417,082). As of September 30, 2025 (unaudited) the Company had an accumulated deficit of $(6,448,446). These factors raise substantial doubt about the Company's ability to continue as a going concern for a period of one year from the issuance of these financial statements.

Management is currently pursuing capital raises and believes that these plans, if successful, will mitigate the conditions that raise substantial doubt. However, the outcome of these plans is uncertain, and there is no assurance that the Company will be successful in executing them.

While management believes that the Company can successfully resolve its liquidity issues through these initiatives, there is significant uncertainty regarding the outcome. Due to these conditions, Management has concluded that substantial doubt exists about the Company's ability to continue as a going concern for the twelve-month period following the issuance of the financial statements. The Company expects to alleviate its going concern issue after the conclusion of a public offering that is in progress.

The accompanying financial statements have been prepared on a going concern basis, which assumes the Company will continue in operation and realize its assets and discharge its liabilities in the ordinary

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course of business. However, due to the uncertainties discussed above, it is possible that the Company may not be able to continue as a going concern. If the Company is unable to continue as a going concern, significant adjustments would be required to the carrying values of its assets and liabilities, and it may be required to significantly reduce or cease its operations.

The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

#### Note 2. Summary of Significant Accounting Policies

#### Basis of Presentation
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") and pursuant to the rules and regulations of the Securities and Exchange Commission (the "SEC"). Operating results for the year ended December 31, 2024 are not necessarily indicative of results to be expected for any future year.

#### Unaudited Interim Financial Information
The accompanying balance sheet as of September 30, 2025, the statements of operations stockholders' equity (deficit), and cash flows for the nine months ended September 30, 2025 and 2024, are unaudited. The financial data and other information disclosed in these notes to the financial statements related to September 30, 2025, and the nine months ended September 30, 2025 and 2024 are also unaudited. The unaudited interim financial statements have been prepared on the same basis as the annual financial statements and, in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to a fair statement of the Company's financial position as of September 30, 2025, and the results of its operations and cash flows for the nine months ended September 30, 2025 and 2024. These interim financial results are not necessarily indicative of results expected for the full fiscal year or for any subsequent interim period.

#### Use of Estimates
The preparation of financial statements in conformity U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Significant estimates, including the underlying assumptions, consist of the allowance for credit losses on trade receivables, valuation allowance on deferred tax assets, inventory obsolescence, stock-based compensation expense and valuation of common stock warrants. It is at least reasonably possible that these estimates may change in the near term. Actual results could differ from those estimates.

#### Cash
The Company maintains its cash primarily in one bank deposit account, which, at times, may exceed federally insured limits. The Company has not experienced any losses on this account. The Company believes it is not exposed to significant credit risk on cash.

#### Trade Receivables and Credit Policies
Trade receivables are uncollateralized customer obligations due under normal trade terms. Trade receivables are stated at the amount billed to the customer. Customer account balances with invoices over 90 days are considered delinquent. The Company does not accrue interest on delinquent trade receivables.

Payments of trade receivables are allocated to the specific invoices identified on the customer's remittance advice or, if unspecified, are applied to the earliest unpaid invoices.

The Company maintains an allowance for credit losses on trade receivables, which is recorded as an offset to trade receivables. Changes in the allowance for credit losses are included as a component of operating expenses in the Statements of Operations. The Company assesses credit losses on a collective basis where similar risk characteristics exist. Receivables that do not share risk characteristics with other receivables, or where known collectability issues exist, are evaluated on an individual basis.

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The allowance is based on the credit losses expected to arise over the life of the receivable (contractual term). The Company considers historical loss rates and current economic conditions. Receivables are written off against the allowance for credit losses. The allowance for credit losses was $0 at December 31, 2024 and 2023 and September 30, 2025 (unaudited).

At January 1, 2023, net accounts receivable was $399,898.

#### Concentrations
As of December 31, 2024 and 2023, the Company had four customers that exceeded 10% of the accounts receivable balance. These customers individually had 32.9%, 25.3%, 13.6% and 11.8% of total accounts receivable at December 31, 2024.

As of September 30, 2025, the Company had one customer that exceeded 10% of total accounts receivable. This customer individually had 73.8% of total accounts receivable at September 30, 2025 (unaudited)

#### Fair Value Measurements
The Company's policies incorporate the guidance for accounting for fair value measurements of financial assets and financial liabilities and for fair value measurements of non-financial items that are recognized or disclosed at fair value in the financial statements on a recurring basis and on a nonrecurring basis. The guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to measurements involving significant unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access at the measurement date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Level 3 inputs are unobservable inputs for the asset or liability.

The level in the fair value hierarchy within which a fair measurement in its entirety falls is based on the lowest level input that is significant to the fair value measurement in its entirety. The Company currently has no non-financial or financial items that are measured on a nonrecurring basis.

The carrying values of accounts receivables, accounts payable, and other financial working capital items approximate fair value at December 31, 2024 and 2023 and September 30, 2025 (unaudited) due to the short-term maturity of these instruments.

#### Inventories
Inventories include raw materials, work in process and finished goods and are stated at the lower of cost (first-in, first-out method) or net realizable value. The Company's industry is characterized by rapid product development and frequent new product introductions. Uncertain timing of regulatory approvals, variability in product launch strategies and variation in product sales all impact inventory reserves for excess, obsolete and expired products. An increase in inventory reserves results in a corresponding increase in cost of goods sold in the statement of operations. Inventories are written off against the reserve when they are physically disposed. Based on current conditions, the Company has no inventory reserve as of December 31, 2024, and 2023 and September 30, 2025 (unaudited).

#### Property and Equipment
Property and equipment are stated at cost less accumulated depreciation. Depreciation is determined using the straight-line method over the estimated useful life. The estimated useful life of leasehold improvements is the shorter of the estimated life or the lease term. The estimated useful lives of furniture,

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fixtures, computers and office and manufacturing equipment are three to seven years. Maintenance and repairs are expensed as incurred. Major improvements and betterments are capitalized.

#### Leases
The Company determines if an arrangement is a lease at inception. A contract is or contains a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. The right to control the use of an asset includes the right to obtain substantially all of the economic benefits of the underlying asset and the right to direct how and for what purpose the asset is used. The Company leases an office and manufacturing facility under a lease that qualifies as an operating lease, as determined at the inception of the lease arrangement. Lease assets represent the right to use an underlying asset for the lease term, and lease liabilities represent the obligation to make payments under the lease. Lease assets and liabilities are measured and recorded at the commencement date based on the present value of payments over the lease term.

Lease assets and liabilities include lease incentives and options to extend or terminate when it is reasonably certain the Company will exercise that option. The Company uses the implicit rate when readily determinable, however, as most leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate. The Company also applies the short-term lease recognition exemption, recognizing lease payments in profit or loss, for lease terms of 12 months or less at commencement and with no option to extend the lease whose exercise is reasonably certain. The Company accounts for the lease and non-lease components as a single lease component.

The Company's incremental borrowing rate is a hypothetical collateralized borrowing rate based on its understanding of what its credit rating would be. The operating lease ROU asset includes any lease payments made and excludes lease incentives.

Operating leases are included in operating lease right-of-use (ROU) assets and operating lease liabilities. The short-term portions of lease liabilities are included in current liabilities. Operating lease expense is recognized on a straight-line basis over the lease term. See Note. 8 — Operating Leases for further discussion.

#### Long-Lived Assets
Long-lived assets, such as property and equipment and right of use assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require the Company to test a long-lived asset for possible impairment, the Company first compares undiscounted cash flows expected to be generated by an asset to the carrying value of the asset. If the carrying value of the long-lived asset is not recoverable on an undiscounted cash flow basis, the Company recognizes impairment to the extent that the carrying value of an asset exceeds its fair value. The Company determines fair value through various valuation techniques including, but not limited to, discounted cash flow models, quoted market values and third-party independent appraisals. No impairment was recognized during 2024 and 2023 and during the nine months ended September 30, 2025 and 2024 (unaudited).

#### Revenue Recognition
The Company determines revenue recognition through the following steps:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Identification of the contract or contracts with a customer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Identification of performance obligations in the contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Determination of the transaction price

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Allocation of the transaction price to the performance obligations in the contract

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Recognition of revenue when or as the Company satisfies the performance obligations

Revenue is generated from the sale of medical devices. The Company recognizes revenue and transfers control to the customer when shipment of the device occurs. Shipping and handling activities are considered

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activities to fulfill the promise to transfer the device. Shipping and handling revenues are not material in the years ended December 31, 2024, and 2023 and the nine months ended September 30, 2025 (unaudited).

Products are sold primarily through a direct sales force and through distributors. Terms of sale are generally consistent for both end-users and distributors, except that payment terms are generally net 30 days for end-users and net 60 days for distributors, with some exceptions. The Company does not maintain any post-shipping obligations to customers; no installation, calibration or testing of products is performed subsequent to shipping in order to render products operational. The Company expects to be entitled to the total consideration for the products ordered as product pricing is fixed, and there are no adjustments for a significant financing component as payment terms fall within one year. The Company excludes taxes assessed by governmental authorities on revenue producing transactions from the measurement of the transaction price.

Costs associated with product sales include commissions expenses. There are no royalty expenses. As revenue from product sales is recognized at a point in time, commissions expenses are recognized as incurred. Commissions expenses are included in selling, general and administrative expenses in the statements of operations.

Significant judgments and estimates involved in the Company's recognition of revenue include the estimation of a provision for returns. In the normal course of business, the Company is not obligated to accept product returns unless a product is defective as manufactured. The Company does not provide customers with the right to a refund. Based on the Company's history of minimal product returns, there is no sales returns and allowance as of December 31, 2024, and 2023 and September 30, 2025 (unaudited).

#### Research and Development
Research and development costs include internal and external costs associated with the development and research of new and existing products or concepts, preclinical studies, clinical trials and studies and related regulatory activities. Research and development costs are expensed as incurred. Research and development costs were not material in 2024 and 2023 and the nine months ended September 30, 2025 (unaudited) and are included in selling, general and administrative expenses in the statements of operations. Clinical trial expenses incurred by third parties are expensed as contracted work is performed over the expected service period. Clinical trial expenses are separately presented in the statements of operations.

#### Income Taxes
The Company accounts for income taxes using the asset and liability method, as required by the accounting standard for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases along with operating loss and tax credit carryforwards. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred income tax assets and liabilities from a change in tax rates is recognized in the statements of operations in the period that includes the enactment date.

The Company's estimate of the valuation allowance for deferred income tax assets requires significant estimates and judgments about future operating results. Deferred income tax assets are reduced by valuation allowances if, based on the consideration of all available evidence, it is more-likely-than-not that a deferred income tax asset will not be realized. Significant weight is given to evidence that can be objectively verified. The Company evaluates deferred income tax assets on an annual basis to determine if valuation allowances are required by considering all available evidence. Deferred income tax assets are realized by having sufficient future taxable income to allow the related tax benefits to reduce taxes otherwise payable. The sources of taxable income that may be available to realize the benefit of deferred income tax assets are future taxable income, future reversals of existing taxable temporary differences, taxable income in prior carryforward years and tax planning strategies that are both prudent and feasible. In evaluating the need for a valuation allowance, the existence of cumulative losses since inception is significant objectively-verifiable negative evidence that must be overcome by objectively-verifiable positive evidence to avoid the need for a valuation

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allowance. The Company's valuation allowance offsets all net deferred income tax assets as it is more-likely-than-not that the benefit of the deferred income tax assets will not be recognized in future periods. The Company has not reclassified income tax effects of the Tax Cuts and Jobs Act within accumulated other comprehensive (loss) income to accumulated deficit due to its full valuation allowance.

The Company recognizes the impact of an uncertain tax position in its financial statements if, in management's judgment, the position is more-likely-than-not sustainable upon audit based on the position's technical merits. This involves the identification of potential uncertain tax positions, the evaluation of applicable tax laws and an assessment of whether a liability for an uncertain tax position is necessary.

#### Stock-Based Compensation
The Company records compensation expense for stock options based on the estimated fair value of the options on the date of grant using the Black-Scholes-Merton ("BSM") option-pricing model. The estimated grant date fair value is expensed over the requisite grant's service period as stock-based compensation expense. The Company uses historical data from comparable medical device companies, among other factors, to estimate the expected price volatility. The risk-free rate is based on the U.S. Treasury yield curve in effect at the time of grant for the estimated life of the option. The expected term of stock options represents the weighted-average period the stock options are expected to remain outstanding. The Company does not have sufficient historical exercise and post-vesting termination activity to provide accurate data for estimating the expected term of options and has opted to use the "simplified method," whereby the expected term equals the arithmetic average of the vesting term and the original contractual term of the option. The Company accounts for forfeitures as they occur. At December 31, 2024 and 2023, and September 30, 2025 (unaudited) the Company had one stock-based compensation plan.

#### Risks and Uncertainties
The Company is subject to risks common to companies in the development stage including, but not limited to, dependency on the clinical and commercial success of its devices, the ability to obtain regulatory approvals, the need for substantial additional financing to achieve its goals, uncertainty of broad adoption of its approved products, if any, by physicians and consumers, and significant competition.

#### Recently Issued Accounting Pronouncements
The Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU") *Disaggregation of Income Statement Expenses* in November 2024 and issued ASU 2025-01 in January 2025 to clarify its effective date. This ASU provides investors with more decision-useful information about a business entity's expenses. The ASU requires companies to provide detailed disclosure of specified categories underlying certain expense captions in interim and annual periods. It would provide investors with more detailed information about the types of expenses, including employee compensation, depreciation, amortization, and costs incurred related to inventory and manufacturing activities in income statement expense captions such as cost of sales; selling, general and administrative; and research and development. The ASU does not change or remove existing expense disclosure requirements and does not change requirements for presentation of expenses on the face of the income statement. It requires companies to include certain existing disclosures in the same tabular format disclosure. The ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods within annual reporting periods beginning after December 15, 2027. Early adoption is permitted. The Company is currently evaluating the impact of this standard on its financial statements.

#### Recently Adopted Accounting Standard
In November 2023, the FASB issued ASU 2023-07 *Improvements to Reportable Segment Disclosures.* This ASU, which amends Topic 280: *Segment Reporting,* improves disclosures requirements for reportable segments and enhances disclosures for companies with single reportable segments. The Company has a single reportable segment based on the nature of its services and regulatory environment under which it operates. The nature of the business and the accounting policies of the segment are the same as described throughout Note 1. The Company's Chief Operating Decision Maker ("CODM") is its president. The CODM assesses the reportable segment's performance and allocates resources for the reportable segment based on the net

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income and total assets which are the same amounts in all material respects as those reported on the Statement of Operations and Balance Sheets. The Company adopted the standard on January 1, 2024. The adoption did not have a material impact on the Company's financial statements.

#### Subsequent Events
The Company evaluates events and transactions that occur after the balance sheet date but before the financial statements are issued (or are available to be issued) to determine whether any such events should be recognized or disclosed in the financial statements. The Company has evaluated subsequent events from the balance sheet of December 31, 2024 through September 4, 2025, the date these financial statements were issued, and has determined that no events or transactions have occurred that would require recognition or disclosure.

#### Note 3. Net Loss Per Share
Basic and diluted net loss per share is computed by dividing the net loss available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net loss per share is the same as basic net loss per share because the effects of potentially dilutive items were anti-dilutive given the Company's net loss position during the years ended December 31, 2024 and 2023 and during the nine months ended September 30, 2025 and 2024 (unaudited).

The following table sets forth the computation of basic and diluted net loss per share attributable to common stockholders:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Year Ended <br> December 31,**  | **Year Ended <br> December 31,**  | **Nine Months Ended <br>September 30,**  | **Nine Months Ended <br>September 30,**  |
| | **2024**  | **2023**  | **2025**  | **2024**  |
|  |  |  | **(unaudited)**  | **(unaudited)**  |
| Numerator: |  |  |  |  |
| Net loss  | $(1845951) | $(1386857) | $(557566) | $(1173616) |
| Net loss attributable to common stockholders  | $(1845951) | $(1386857) | $(557566) | $(1173616) |
| Denominator: |  |  |  |  |
|  Weighted-average shares used to compute <br> net loss per share, basic and diluted  | 5661954 | 5636425 | 5810282 | 5643286 |
|  Net loss per share attributable to common <br> stockholders, basic and diluted  | $(.33) | $(.25) | $(.10) | $(.21) |

---

The following outstanding shares of potentially dilutive securities were excluded from the computation of diluted net loss per share attributable to common stockholders for the period presented because including them would have been antidilutive:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31,**  | **December 31,**  | **September 30,**  | **September 30,**  |
| | **2024**  | **2023**  | **2025**  | **2024**  |
|  |  |  | **(unaudited)**  | **(unaudited)**  |
| Outstanding options to purchase common stock  | 638000 | 416000 | 463000 | 453000 |
| Common stock warrants  | 542080 | 542080 | 542080 | 542080 |
| Total  | 1180080 | 958080 | 1005080 | 995080 |

---

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#### Note 4. Inventories
Inventories used in the determination of cost of goods sold are as follows:

---

| | | | |
|:---|:---|:---|:---|
| | **December 31,**  | **December 31,**  | **September 30, <br> 2025**  |
| | **2024**  | **2023**  | **September 30, <br> 2025**  |
|  |  |  | **(unaudited)**  |
| Raw Materials  | $**213299**  | $377161 | $285573 |
| Work In Process  | 14588 | 26454 | 93534 |
| Finished Goods  | 145711 | 62545 | 180588 |
| **Total Inventories**  | $**373598**  | $466160 | $559695 |

---

#### Note 5. Property and Equipment
Property and equipment consists of the following:

---

| | | | |
|:---|:---|:---|:---|
| | **December 31,**  | **December 31,**  | **September 30, <br> 2025**  |
| | **2024**  | **2023**  | **September 30, <br> 2025**  |
|  |  |  | **(unaudited)**  |
| Equipment  | $**46826**  | $46826 | $47326 |
| Leasehold improvements  | 7185 | 7185 | 7185 |
|  | 54011 | 54011 | 54511 |
| Accumulated depreciation  | (16568) | (10411) | (21203) |
| Total Property and Equipment  | $**37443**  | $**43600**  | $**33308**  |

---

Depreciation expense was $6,157, $6,161, $4,634 and $4,618 for the years ended December 31, 2024 and 2023 and the nine months ended September 30, 2025 and 2024 (unaudited), respectively.

#### Note 6. Accrued Expenses
Accrued expenses consists of the following:

---

| | | | |
|:---|:---|:---|:---|
| | **December 31,**  | **December 31,**  | **September 30, <br> 2025**  |
| | **2024**  | **2023**  | **September 30, <br> 2025**  |
|  |  |  | **(unaudited)**  |
| Wages and commissions  | $**304308**  | $105486 | $174275 |
| Other  | 76005 | 113719 | 55733 |
| **Total Accrued Expenses**  | $**377313**  | $219205 | $230008 |

---

#### Note 7. Debt

#### Short-Term Debt
At December 31, 2024 and 2023 and September 30, 2025 (unaudited), the Company's short-term debt included a $50,000 unsecured promissory note with a board member. The note was obtained on October 11, 2023 and was amended and restated on November 24, 2025. The note bears interest at 10% and includes a 20% origination fee. The note matures on June 30, 2026, is convertible at the discretion of the lender and provides for conversion of any outstanding amounts into common stock of the company at $5.00/share.

#### Long-Term Debt
At December 31, 2024 and 2023 and September 30, 2025 (unaudited), the Company's long-term debt consisted of a $1,000,000 promissory note with an unrelated company. The note was obtained on November 6, 2023, bears interest at 7.0%, compounded annually and matures on November 6, 2026. The note has no

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scheduled payments during its term and is secured by all tangible and intangible assets of the Company. The Company was in compliance with all covenants as of December 31, 2024 and September 30, 2025 (unaudited).

The issuer of the note was granted a right of first refusal on all future stock issuances by the Company. This right expires at the later of November 6, 2026, and 2 years after the repayment in full of all note obligations.

#### Note 8. Operating Leases
On February 3, 2023 the Company entered into a lease with a third party for 7,459 square feet of office and manufacturing space located in Eagan, Minnesota, with a commencement date of April 1, 2023 and maturing on May 31, 2029. As a result of this agreement, the Company recognized an ROU asset and lease liability of $513,823 pursuant to ASC 842*, "*Leases".

The components of lease expense and supplemental cash flow information related to this lease for the years ended December 31, 2024, and 2023 and the nine months ended September 30, 2025 and 2025 (unaudited) are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31,**  | **December 31,**  | **September 30,**  | **September 30,**  |
| | **2024**  | **2023**  | **2025**  | **2024**  |
|  |  |  | **(unaudited)**  | **(unaudited)**  |
| <u>Lease Costs:</u> |  |  |  |  |
| Operating lease cost  | $114601 | $106401 | $83508 | $84328 |
| Short-term lease cost  | 12000 | 11000 | 0 | 5000 |
| Variable lease cost  | 42346 | 26831 | 40966 | 33270 |
| Total lease costs:  | $168947 | $144231 | $124475 | $122599 |
| <u>Supplemental Cash Flow Information:</u> |  |  |  |  |
|  Cash paid for amounts included in the measurement of lease liabilities: <br> Operating cash flows from operating leases  | $64024 | $58390 | $54701 | $69350 |
| &nbsp;&nbsp;&nbsp; ROU assets obtained in exchange for lease obligations  | $0 | $513823 | $0 | $0 |

---

Future maturities of the Company's lease liabilities are as follows:

---

| | | |
|:---|:---|:---|
| **Year ending**  | **December 31, 2024**  | **September 30, 2025**  |
|  |  | **(unaudited)**  |
| 2025  | $112929 | $28437 |
| 2026  | 116323 | 116323 |
| 2027  | 119810 | 119810 |
| 2028  | 123428 | 123428 |
| 2029  | 52431 | 52431 |
| Total lease payments  | 524921 | 440429 |
| Less: Imputed interest/present value discount  | (104005) | (74214) |
| Total lease liability  | $420916 | $366215 |
| <u>Other Information</u> |  |  |
| &nbsp;&nbsp;&nbsp; Weighted-average remaining lease term (in years):  | 4.4 | 3.6 |
| &nbsp;&nbsp;&nbsp; Weighted-average discount rate  | 10.0% | 10.0% |
| &nbsp;&nbsp;&nbsp; Right of use asset  | $402149 | $345989 |

---

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#### Note 9. Stockholders (Deficit) Equity

#### Common Stock
As of December 31, 2024, and 2023 and September 30, 2025 (unaudited), the Company had 10,000,000 shares of Common Stock authorized and 5,717,425, 5,636,425 and 5,867,425 shares of Common Stock issued and outstanding, with a par value of $0.01 per share, respectively.

During 2024, the Company sold 81,000 shares of common stock for $5.00 per share, less offering costs. All sales were to unrelated parties.

#### Series A Preferred Stock
As of December 31, 2024 and 2023 and September 30, 2025 (unaudited), the Company had 1,200,000 shares of Series A Preferred Stock authorized and 876,000 shares of Series A Preferred Stock issued and outstanding, with a par value of $0.01 per share.

Series A Preferred Stock has the following rights and preferences:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Dividends: Holders are entitled to cumulative dividends at a rate of 8.0% per annum of the Series A Preferred stock original issue price, when and if declared by the Board of Directors. No dividends were declared or paid during the years ended December 31, 2024 or 2023 and the nine months ended September 30, 2025 and 2024 (unaudited).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Liquidation Preference: In the event of any liquidation, dissolution, or winding up of the Company or a deemed liquidation event, holders of the Series A Preferred Stock, then outstanding, are entitled to receive first the amount of the aggregate accruing dividend not yet paid and second an amount per share equal to the greater of the Series A original issue price ($5.00) or such amount per share as would have been payable had all shares of Series A Preferred Stock been converted into common stock immediately prior to such liquidation, dissolution, winding up or deemed liquidation event. The amount of the liquidation preference, including the preferred return was approximately $5.6 million and $5.8 million as of December 31, 2024 and September 30, 2025 (unaudited), respectively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Optional Conversion: The Series A Preferred Stock initially converts at any time at the option of the holder into shares of common stock on a one-for-one basis, subject to adjustments for stock dividends, splits combinations and similar events.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Mandatory Conversion: Each share of Series A Preferred Stock will automatically convert into common stock at the then applicable conversion rate (i) upon the closing of an underwritten public offering of the Company's common stock having a public offering price of at least $10 per share and resulting in gross proceeds to the Company of at least $20 million, and (ii) upon the approval of the preferred supermajority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Voting Rights: The Series A Preferred Stock votes together with the common stock on an as-converted basis and not as a separate class except as required by law. Certain matters as specifically provided in the Certificate of Designation, cannot be affected without the affirmative vote or written consent of the Preferred Supermajority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Preemptive Rights: Subject to certain exceptions, in the event the Company elects to issue shares of its capital stock or securities convertible into shares of its capital stock, each holder of Series A Preferred Stock shall have the right to purchase on such terms a pro rata portion of the new securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; • Anti-dilution Adjustments: Subject to certain exceptions, if at any time the Company issues additional shares of common stock without consideration or for a consideration per share less than the conversion price in effect immediately prior to such issue, then the conversion price shall be reduced with such issue, to a price determined in accordance with a formula provided in the Certificate of Designation.

The Company did not convert or issue any Series A Preferred Stock during 2024 and 2023 and during the nine months ended September 30, 2025 and 2024 (unaudited).

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#### Common Stock Warrants
As of December 31, 2024 and 2023, and September 30, 2025 (unaudited) the Company had 542,080 outstanding common stock warrants to purchase an aggregate of 542,080 shares of common stock. These warrants were issued in connection with the Series A Preferred Stock offerings in 2022 and 2021.

All outstanding warrants are classified as equity instruments in accordance with ASC 815-40, *Derivatives and Hedging — Contracts in Entity's Own Equity*, as they (i) are indexed to the Company's common stock, (ii) do not require cash settlement by the Company under any circumstances, and (iii) meet all criteria for equity classification. The warrants do not contain any anti-dilution or price-reset provisions that would preclude equity treatment. As such, the warrants are not subject to remeasurement and are not recorded as liabilities.

A summary of the Company's outstanding common stock warrants as of December 31, 2024 and 2023 and September 30, 2025 (unaudited) are as follows:

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Year Issued**  | **Number of <br> Warrants**  | **Exercise <br> Price**  | **Expiration <br> Year**  | **Life in <br> Years**  |
| 2021  | 32320 | $5.00 | 2031 | 10 |
| 2022  | 472000 | $10.00 | 2029 | 7 |
| 2022  | 37760 | $5.00 | 2032 | 10 |
|  | 542080 |  |  |  |

---

The fair value of the warrants was determined on the respective issuance dates using the Black-Scholes-Merton option pricing-model.

The warrants are exercisable for common stock and do not confer any voting rights, dividends, or other rights until exercised. No warrants were exercised, canceled, or expired during the years ended December 31, 2024, and 2023 and the nine months ended September 30, 2025 and 2024 (unaudited).

#### Note 10. Stock-Based Compensation
The 2018 Encore Medical, Inc. Equity Stock Incentive Plan (the "2018 Plan") authorizes the issuance of nonqualified stock options and restricted stock units. Payment for the shares may be made in cash, shares of the Company's common stock or a combination thereof. Under the terms of the 2018 Plan, incentive stock options and non-qualified stock options are granted at a minimum of 100% of fair market value on the date of grant and may be exercised after vesting at various times depending upon the terms of the option. All existing options expire 10 years from the date of grant or one year from the date of death. The terms of the grants allow for an acceleration of vesting upon a change in control of the Company.

Under the 2018 Plan, the Company is authorized to issue up to 571,742 shares through stock options and awards such as restricted stock or restricted stock units as of December 31, 2024.

#### Stock Options
In 2024, the Company granted 100,000 non-qualified stock options in total to two of its employee board members and 285,000 non-qualified stock options to employees. All of the options vest immediately except for 25,000 options granted to a non-board member employee. The Company did not grant any options in 2023 and the nine months ended September 30, 2025 (unaudited).

The weighted average assumptions made in estimating the fair value of the options on the grant date based upon the BSM option-pricing model for the year ended December 31, 2024 are as follows:

---

| | |
|:---|:---|
| | **2024**  |
| Dividend Yield  | 0.00%  |
| Expected Volatility  | 34.30%  |
| Risk Free Interest Rate  | 3.94%  |
| Expected Life  | 5 Years  |

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The Company calculates expected volatility for stock options using comparable volatility from other medical device companies as the Company does not have its own volatility due to the lack of significant sales of its common stock.

There were no options exercised during the years ended December 31, 2024 and 2023. The Company had 163,000, 2,000 and 25,000 options forfeited during the years ended December 31, 2024 and 2023 and the nine months ended September 30, 2025 (unaudited), respectively.

The following table summarizes the activity for outstanding incentive stock options under the 2018 Plan:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Options Outstanding**  | **Options Outstanding**  | **Options Outstanding**  | **Options Outstanding**  |
| | **Number of <br> Shares**  | **Weighted- <br> Average <br> Exercise <br> Price**  | **Weighted- <br> Average <br> Remaining <br> Contractual <br> Term <br> (in years)**  | **Aggregate <br> Intrinsic Value**  |
| Balance at December 31, 2022  | 418000 | $1.41 | 3.90 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted  | 0 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exercised  | 0 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited  | (2000) | 5.00 | 0.0 |  |
| Balance at December 31, 2023  | 416000 | 1.39 | 3.92 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted  | 385000 | 5.00 | 9.59 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exercised  | 0 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited  | (163000) |  | 0.0 |  |
| Balance at December 31, 2024  | 638000 | $3.59 | 7.35 | $900000 |
| &nbsp;&nbsp;&nbsp; Vested and exercisable as of December 31, 2024  | 626194 | $3.56 |  | $900000 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Options Outstanding**  | **Options Outstanding**  | **Options Outstanding**  | **Options Outstanding**  |
| | **Number of <br> Shares**  | **Weighted- <br> Average <br> Exercise <br> Price**  | **Weighted- <br> Average <br> Remaining <br> Contractual <br> Term <br> (in years)**  | **Aggregate <br> Intrinsic Value**  |
| Balance at December 31, 2024  | 638000 | $3.59 | 7.35 | $900000 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Granted (unaudited)  | 0 |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Exercised (unaudited)  | (150000) | 1.00 | 0.00 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Forfeited (unaudited)  | (25000) | 5.00 | 0.00 |  |
| Balance at September 30, 2025 (unaudited)  | 463000 | 4.35 | 7.83 | $300000 |
| &nbsp;&nbsp;&nbsp; Vested and exercisable as of September 30, 2025 (unaudited)  | 457444 | $4.34 |  | $300000 |

---

As of December 31, 2024 and September 30, 2025 (unaudited), the unrecognized compensation expense related to outstanding stock options was $23,198 and $10,917, respectively, which the Company expects to recognize over the remaining 17 and 8 month vesting period, respectively. The Company recognized compensation expense in connection with the vesting of options of $696,101 and $7,936 during the years ended December 31, 2024 and 2023 and $12,281 and $690,926 during the nine months ended September 30, 2025 and 2024 (unaudited).

#### Note 11. Related Party Transactions
The Company was a subsidiary of Cardia Inc., until it was spun-off to Cardia shareholders on October 1, 2020. The two companies have common ownership consisting of non-majority interests in

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common and preferred stock of both companies. In addition, the companies have the same CEO and two board members. The Company has engaged in various transactions with Cardia, including Cardia selling medical devices on behalf of the Company, while the transfer of appropriate regulatory requirements was completed. During the years ended December 31, 2024 and 2023 and the nine months ended September 30, 2025 and 2024 (unaudited) Cardia sold and remitted sales proceeds of $888,342, $1,388,265, $0 and $881,988, respectively to the Company.

Cardia also performed contract manufacturing services on behalf of the Company through the first 3 months of 2023 During the years ended December 31, 2024 and 2023 and the nine months ended September 30, 2025 and 2024, the Company purchased the following services from Cardia.

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **December 31,**  | **December 31,**  | **September 30,**  | **September 30,**  |
| | **2024**  | **2023**  | **2025**  | **2024**  |
| Contract manufacturing services  | $— | $388289 | $— | $— |
| Contract management services  |  | 130310 |  |  |
| Rent charged by Cardia  |  | 30000 |  |  |

---

Additionally, the Company has an agreement to manufacture medical devices for Cardia. During the years ended December 31, 2024 and 2023 and the nine months ended September 30, 2024 and 2025 (unaudited), the Company billed Cardia $27,650, $35,088, $19,006 and $35,088, respectively.

At December 31, 2024 and 2023 and September 30, 2025 (unaudited), Encore had a receivable from Cardia of $0, $381,727 and $0 (unaudited), respectively. At September 30, 2025, Encore had a payable due to Cardia of $65,499 (unaudited) During the year ended December 31, 2024, the Company recorded $475,538 of bad debt expense related to the Cardia receivable. It was determined that due to Cardia's limited revenue and future expectations of revenue the receivable would not be realized.

See Note 7. Debt for short-term debt related party disclosures.

All related party transactions are reviewed and approved in accordance with the Company's related party agreements

#### Note 12. Income Taxes
The provision (benefit) for income tax expense consisted of the following for the years ended:

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| | **2024**  | **2023**  |
| Current income taxes, Federal  | $0.00 | $0.00 |
| Current income taxes, State | 0.00 | 0.00 |
| Deferred income taxes, Federal  | 0.00 | 0.00 |
| Deferred income taxes, State  | 0.00 | 0.00 |
| Unrecognized tax benefit, Federal  | 0.00 | 0.00 |
| Unrecognized tax benefit, State  | 0.00 | 0.00 |
| Total provision (benefit) for income taxes  | $0.00  | $0.00 |

---

The Company did not record any income tax provision for the years ended December 31, 2024 and 2023, respectively, due to the Company's net losses. The Company files income tax returns in the United States ("Federal") and Minnesota ("State") jurisdictions. The Company is subject to Federal and State income tax examinations by tax authorities for all years since its inception. At December 31, 2024, the Company had Federal net operating loss carry forwards available to offset future taxable income of approximately $5.2 million. These carry forwards do not expire for Federal purposes. At December 31, 2024 and 2023 the Company has recorded a valuation allowance for 100% of its cumulative deferred tax assets.

The Company has no accrued interest or penalties related to uncertain tax positions as of December 31, 2024 or December 31, 2023 and uncertain tax positions are not significant.

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Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and operating losses and tax credit carryforwards. The significant components of net deferred income tax assets are:

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| | **2024**  | **2023**  |
| Deferred Tax Assets: |  |  |
| &nbsp;&nbsp;&nbsp; Vacation accrual  | $**15315**  | 13515 |
| &nbsp;&nbsp;&nbsp; Net operating losses  | 1082457 | 843180 |
| &nbsp;&nbsp;&nbsp; Other  | 618 | 626 |
| &nbsp;&nbsp;&nbsp; Valuation allowance  | (1098390) | (857321) |
| Total Deferred Tax Assets  |  |  |
| Total Deferred Tax Liabilities  | 0 | 0 |
| Net Deferred Tax Asset  | $**0**  | 0 |

---

A reconciliation of the federal statutory income tax rate and the effective income tax rate as a percentage of income before income tax provision is as follows for the year ended:

---

| | | |
|:---|:---|:---|
| | **December 31,**  | **December 31,**  |
| | **2024**  | **2023**  |
| Federal statutory income tax rate  | 21.0% | 21.0% |
| State tax, net of federal benefit  | 0.0% | 0.0% |
| Change in valuation allowance on net operating loss carryforward  | (21.0)% | (21.0)% |
| Effective income tax rate  | 0.00% | 0.00% |

---

#### Nine Months Ended September 30, 2025 and 2024 (unaudited)
The Company had an effective tax rate of 0% for both the nine months ended September 30, 2025 and 2024 (unaudited). The Company continues to incur operating losses. During the nine months ended September 30, 2025 and 2024 (unaudited), the Company has evaluated all available evidence, both positive and negative, including historical levels of income, expectations and risks associated with estimates of future taxable income and has determined that it is more likely than not that its net deferred tax assets will not be realized. Due to uncertainties surrounding the realization of the deferred tax assets, the Company continues to maintain a full valuation allowance against its net deferred tax assets.

#### Note 13. Contingencies
The Company sometimes becomes subject to claims against it in the ordinary course of business. There are currently no pending or threatened claims against the Company that it believes will have a material adverse effect on its results of operations or liquidity.

#### Note 14. Subsequent Events (unaudited)
As of September 30, 2025, the Company's short-term debt consisted of a $50,000 unsecured promissory note with a board member, Chris Turnbull. The note, which was amended and restated on November 24, 2025, bears interest at 10% and matures on June 30, 2026, which date the parties may mutually elect to extend for an additional 6 months. In addition, in November and December 2025, the Company obtained additional funds in the form of unsecured promissory notes in the aggregate principal amount of $300,000 from a non-affiliated third party and from the Company's Chief Executive Officer, Joseph Marino. These notes also bear interest at 10% and mature on June 30, 2026, which date the parties may mutually elect to extend for an additional 6 months. All of the unsecured promissory notes were for working capital, include an origination fee of 20% and are convertible into shares of common stock of the Company at a conversion price of $5.00 per share at the option of the holder upon written notice at any time prior to repayment. (See "Related-Party Transactions").

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### [3,000,000] Shares of Common Stock
![[MISSING IMAGE: lg_emi-4c.jpg]](lg_emi-4c.jpg)

![[MISSING IMAGE: lg_encoremedical-4c.jpg]](lg_encoremedical-4c.jpg)

### Common Stock

#### PROSPECTUS

### OAK RIDGE FINANCIAL DAWSON JAMES SECURITIES, INC.

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#### PART II

#### INFORMATION NOT REQUIRED IN PROSPECTUS

#### Item 13. Other Expenses of Issuance and Distribution
The following table presents the costs and expenses, other than underwriting discounts and commissions, payable in connection with this offering. All amounts are estimates except the SEC registration fee, the FINRA filing fee and [•] listing fee. Except as otherwise noted, all the expenses below will be paid by us.

---

| | |
|:---|:---|
| SEC registration fee  | $2,852.28\* |
| FINRA filing fee  | \* |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;listing fee  | \* |
| Printing expenses  | \* |
| Legal fees and expenses  | \* |
| Accounting fees and expenses  | \* |
| Transfer agent and registrar fees  | \* |
| Miscellaneous fees and expenses  | \* |
| Total  | $\* |

---

\*

To be completed by amendment.

#### Item 14. Indemnification of Directors and Officers
Encore Medical was incorporated under the laws of Minnesota. The Minnesota Business Corporation Act provides that our officers and directors have the right to indemnification from us for liability arising out of certain actions. Such indemnification may be available for liabilities arising in connection with securities offerings.

We have adopted in our Articles a provision which limits personal liability for breach of the fiduciary duty of our directors, to the extent provided by Section 302A.251 of the Minnesota Business Corporation Act. Such provision eliminates the personal liability of directors for damages occasioned by breach of fiduciary duty, except for liability based on the director's duty of loyalty to us, liability for acts or omissions not made in good faith, liability for acts or omissions involving intentional misconduct or a knowing violation of law, liability based on payments of improper dividends, liability based on violations of state securities laws, and liability for acts occurring prior to the date such provision was added.

Section 302A.521 of the Minnesota Business Corporation Act provides that a Minnesota business corporation shall indemnify any director, officer, employee or agent of the corporation made or threatened to be made a party to a proceeding, by reason of the former or present official capacity (as defined therein) of the person, against judgments, penalties, fines, settlements and reasonable expenses incurred by the person in connection with the proceeding if certain statutory standards are met. "Proceeding" means a threatened, pending or completed civil, criminal, administrative, arbitration or investigative proceeding, including one by or in our right. Article VIII of our bylaws provides that we shall indemnify persons to the fullest extent permissible by the Minnesota Business Corporation Act. Section 302A.521 contains detailed terms regarding such right of indemnification and reference is made thereto for a complete statement of such indemnification rights.

In addition, the proposed form of Underwriting Agreement (to be filed by amendment) is expected to provide for indemnification by the underwriters of our directors and officers, and by us of the underwriters, for certain liabilities, including liabilities arising under the Securities Act.

Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling us pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is therefore unenforceable.

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#### Item 15. Recent Sales of Unregistered Securities
The following sets forth information regarding all unregistered securities sold by us since January 1, 2022:

In a series of closings in 2022, we issued an aggregate of 472,000 shares of our Series A Preferred Stock to accredited investors at a purchase price equal to $5.00 per share, for an aggregate purchase price of approximately $2.36 million. The Preferred Stock was sold as a Unit with each investor receiving a 10-year Warrant equivalent to the number of shares purchased.

In a series of closings in 2024, we issued an aggregate of 81,000 shares of our common stock to accredited investors at a purchase price equal to $5.00 per share, for an aggregate purchase price of approximately $405,000.

As of September 30, 2025, the Company's short-term debt consisted of a $50,000 unsecured promissory note with a board member, Chris Turnbull. The note, issued on October 11 which was amended and restated on November 24, 2023 2025, bears interest at 10% and includes a 10% origination fee. The note matured on September 30, 2024, and is currently callable matures on June 30, 2026, which date the parties may mutually elect to extend for an additional 6 months. In addition, in November and December 2025, the Company obtained additional funds in the form of unsecured promissory notes in the aggregate principal amount of $300,000 from a non-affiliated third party and from the Company's Chief Executive Officer, Joseph Marino. These notes also bear interest at 10% and mature on June 30, 2026, which date the parties may mutually elect to extend for an additional 6 months. All of the unsecured promissory notes were for working capital, include an origination fee of 20% and are convertible into shares of common stock of the Company at a conversion price of $5.00 per share at the discretion option of the lender holder upon written notice at any time prior to repayment.

Unless otherwise specified above, we believe these transactions were exempt from registration under the Securities Act in reliance on Section 4(a)(2) of the Securities Act (and Regulation D promulgated thereunder) as transactions by an issuer not involving any public offering.

In 2024, the Company granted to its officers and directors options to purchase an aggregate of 385,000 shares of common stock pursuant to its 2018 Stock Incentive Plan, which option grants are described under "Executive Compensation" beginning on page 63, which description is incorporated by reference. These securities were issued pursuant to the exemption provided by Rule 701 for compensatory awards.

#### Item 16. Exhibits and Financial Statement Schedules
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) Exhibits. The following exhibits are included herein or incorporated herein by reference:

---

| | |
|:---|:---|
| **Exhibit <br> Number**  | **Description**  |
| &nbsp;&nbsp;&nbsp; 1.1 | [Form of Underwriting Agreement.](tm2525595d4_ex1-1.htm)  |
| &nbsp;&nbsp; 3.2 | [Amended and Restated Articles of Incorporation of Registrant.](tm2525595d4_ex3-2.htm)  |
| &nbsp;&nbsp; 3.3 | [Amendment to the Amended and Restated Articles of Incorporation of Registrant, effective November 17, 2025.](tm2525595d4_ex3-3.htm)  |
| &nbsp;&nbsp; 3.4 | [Bylaws of Registrant.](tm2525595d4_ex3-4.htm)  |
| &nbsp;&nbsp; 4.1 | [Form of Registrant's Common Stock Certificate (Incorporated by reference to Exhibit 4.1 to the Registrant's Registration Statement on Form S-1 (File No. 333-290244), filed on September 15, 2025, as amended).](https://www.sec.gov/Archives/edgar/data/1838003/000110465925089675/tm2525595d2_ex4-1.htm) |
| &nbsp;&nbsp;&nbsp; 4.2 | [Form of Underwriters' Warrant (Incorporated by reference to Exhibit 4.2 to the Registrant's Registration Statement on Form S-1 (File No. 333-290244), filed on September 15, 2025, as amended).](https://www.sec.gov/Archives/edgar/data/1838003/000110465925089675/tm2525595d2_ex4-2.htm) |
| &nbsp;&nbsp; 5.1\* | Opinion of Holland & Hart LLP. |
| &nbsp;&nbsp; 10.1 | [Contract Sales and Manufacturing Agreement, by and between Cardia, Inc. and Registrant, effective November 15, 2024, and related addenda dated December 12, 2025.](tm2525595d4_ex10-1.htm) |

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---

| | |
|:---|:---|
| **Exhibit <br> Number**  | **Description**  |
| &nbsp;&nbsp; 10.2 | [Commercial Lease, by and between The Waters HM LLC and Registrant, effective February 3, 2023.](tm2525595d4_ex10-2.htm)  |
| &nbsp;&nbsp; 10.3 | [First Amendment to Commercial Lease, by and between The Waters HM LLC and Registrant, effective March 3, 2023.](tm2525595d4_ex10-3.htm)  |
| &nbsp;&nbsp; 10.4 | [Loan Agreement, by and between Merit Medical Systems, Inc. and Registrant, dated November 6, 2023.](tm2525595d4_ex10-4.htm)  |
| &nbsp;&nbsp; 10.4(a)† | [Encore Medical, Inc. 2018 Stock Incentive Plan.](tm2525595d4_ex10-4a.htm)  |
| &nbsp;&nbsp; 10.4(b)† | [Form of Incentive Stock Option Agreement under the 2018 Stock Incentive Plan.](tm2525595d4_ex10-4b.htm)  |
| &nbsp;&nbsp; 10.4(c)† | [Form of Nonqualified Stock Option Award Agreement under the 2018 Stock Incentive Plan.](tm2525595d4_ex10-4c.htm)  |
| &nbsp;&nbsp; 10.5 | [Security Agreement, by and between Merit Medical Systems, Inc. and Registrant, dated November 6, 2023 (Incorporated by reference to Exhibit 10.5 to the Registrant's Registration Statement on Form S-1 (File No. 333-290244), filed on September 15, 2025, as amended).](https://www.sec.gov/Archives/edgar/data/1838003/000110465925089675/tm2525595d2_ex10-5.htm) |
| &nbsp;&nbsp; 10.6 | [Independent Contractor Agreement, by and between Registrant and Gregory Steiner, dated December 15, 2024.](tm2525595d4_ex10-6.htm) |
| &nbsp;&nbsp; 10.7 | [Amended and Restated Convertible Promissory Note, by and between Christopher J. Turnbull and Registrant, dated November 24, 2025.](tm2525595d4_ex10-7.htm) |
| &nbsp;&nbsp; 10.8 | [Convertible Promissory Note, by and between Joseph A. Marino and Registrant, dated November 24, 2025.](tm2525595d4_ex10-8.htm) |
| &nbsp;&nbsp; 10.9 | [Convertible Promissory Note, by and between 1915 Florida Investment Corp. and Registrant, dated December 10, 2025.](tm2525595d4_ex10-9.htm) |
| &nbsp;&nbsp; 23.1 | [Consent of Boulay PLLP, Independent Registered Public Accounting Firm.](tm2525595d4_ex23-1.htm)  |
| &nbsp;&nbsp; 23.2\* | Consent of Holland & Hart LLP (contained in Exhibit 5.1). |
| 24.1 | Power of Attorney (included on signature page). |
| 107 | [Filing Fee Table (Incorporated by reference to Exhibit 107 to the Registrant's Registration Statement on Form S-1 (File No. 333-290244), filed on September 15, 2025, as amended).](https://www.sec.gov/Archives/edgar/data/1838003/000110465925089675/tm2525595d1_ex-filingfees.htm) |

---

\*

To be filed by amendment.

†

Indicates a management contract or compensatory plan or arrangement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) Financial Statement Schedules. All schedules have been omitted because the information required to be presented in them is not applicable or is shown in the consolidated financial statements or related notes.

#### Item 17. Undertakings
The undersigned registrant hereby undertakes to provide to the underwriter at the closing specified in the underwriting agreement certificates in such denominations and registered in such names as required by the underwriter to permit prompt delivery to each purchaser.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

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The undersigned registrant hereby undertakes that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1) For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b)(1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2) For the purpose of determining any liability under the Securities Act of 1933, as amended, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

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#### SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in Eagan, Minnesota, on this 30th day of December, 2025.

#### ENCORE MEDICAL, INC.
/s/ Joseph A. Marino

Joseph A. Marino

*President and Chief Executive Officer* 

------

## Exhibit 1.1

**Exhibit 1.1**

**UNDERWRITING AGREEMENT**

[·], 2026

The Oak Ridge Financial Services Group, Inc.

As Representative of the Underwriters named on Schedule A hereto

701 Xenia Avenue South, Suite 100

Golden Valley, MN 55416

Ladies and Gentlemen:

Encore Medical, Inc., a Minnesota corporation (the "**Company**"), proposes, subject to the terms and conditions stated herein, to issue and sell an aggregate of [·] shares (the "**Firm Shares**") of the Company's common stock, $0.01 par value per share (the "**Common Stock**"), to the several underwriters named in <u>Schedule A</u> hereof (the "**Underwriters**"), for whom The Oak Ridge Financial Services Group, Inc. is acting as representative (the "Representative"). The Company has also agreed to grant to the Representative on behalf of the Underwriters an option (the "**Option**") to purchase up to an additional [·] shares of Common Stock, representing fifteen percent (15%) of the Firm Shares sold in the offering (the "**Option Shares**"), on the terms set forth in Section 1(b) hereof. The Firm Shares and the Option Shares are hereinafter referred to together as the "**Offered Shares**." The offering of such Offered Shares is hereinafter called the "**Offering**."

The Company confirms as follows its agreement with each of the Underwriters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Agreement to Sell and Purchase</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>Purchase of Firm Shares</u>. On the basis of the representations, warranties and agreements of the Company contained herein and subject to all the terms and conditions of this Agreement, the Company agrees to sell to the Underwriters, severally and not jointly, and the Underwriters, severally and not jointly, agree to purchase from the Company the number of Firm Shares set forth opposite the name of such underwriter on <u>Schedule A</u> hereof, at a purchase price (net of discount and commissions) of $[·] per Firm Share. The Firm Shares are to be offered initially to the public at the offering price of $[·] per Firm Share (the "<u>Offering Price</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;(b) <u>Purchase of Option Shares</u>. Subject to all the terms and conditions of this Agreement, the Company grants to the Representative on behalf of the Underwriters the Option to purchase, severally and not jointly, all or less than all of the Option Shares at a purchase price equal to the purchase price per Firm Share set forth in clause (a) of this Section 1. The Option may be exercised in whole or in part at any time and from time to time on or before the 45th day after the date of this Agreement, upon written notice (the "**Option Notice**") by the Representative to the Company no later than 12:00 noon, New York City time, at least one and no more than five business days before the date specified for closing in the Option Notice (the "**Option Closing Date**") setting forth the aggregate number of Option Shares to be purchased and the time and date for such purchase. Upon exercise of the Option, the Company will become obligated to convey to the Underwriters, and, subject to the terms and conditions set forth herein, the Underwriters will become obligated to purchase, the number of Option Shares specified in the Option Notice. If any Option Shares are to be purchased, each Underwriter agrees, severally and not jointly, to purchase the number of Options Shares set forth on <u>Schedule A</u> opposite such Underwriter's name.

&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>Underwriters' Warrants</u>. The Company hereby agrees to issue to the Underwriters (and/or their designees) on the Closing Date (as defined below) and each Option Closing Date, as the case may be, warrants to purchase an aggregate of eight percent (8%) of the shares of Common Stock issued at such closing (the "**Underwriters' Warrants**"), substantially in the form attached hereto as <u>Exhibit C</u>. The Underwriters' Warrants shall be exercisable, in whole or in part, commencing 1 year after the effective date (the "**Effective Date**") of the Registration Statement (as defined in Section 3(a) below) and expiring on the four-year anniversary of the date on which the Representative's Warrants first become exercisable, at an initial exercise price of $[ ] per share, which is equal to one hundred percent (120%) of the initial Offering Price per Firm Share. The shares of Common Stock issuable upon exercise of the Underwriters' Warrants are hereinafter referred to as the "**Underwriters' Warrant Shares**."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Delivery and Payment</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>Closing</u>. Delivery and payment for the Firm Shares shall be made at 10:00 a.m., Eastern time, on the first (1st) business day following the Effective Date of the Registration Statement (or the first business day following the Effective Date if the Registration Statement is declared effective after 4:01 p.m., Eastern time) or at such earlier time as shall be agreed upon by the Representative and the Company, at the offices of Maslon LLP, 225 South Sixth Street, Suite 2900, Minneapolis, MN 55402 ("**Representative Counsel**"), or at such other place (or remotely by facsimile or other electronic transmission) as shall be agreed upon by the Representative and the Company. The hour and date of delivery and payment for the Firm Shares is called the "**Closing Date**." Delivery of the Firm Shares shall be made to the Representative through the facilities of the Depository Trust Company ("**DTC**") for the respective accounts of the Underwriters against payment of the purchase price by wire transfer of Federal (same-day) funds to the order 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;(b) <u>Option Closing</u>. To the extent the Option is exercised, delivery of the Option Shares against payment by the Underwriters (in the manner and at the location specified above) shall take place at the time and date (which may be the Closing Date, but not earlier than the Closing Date) specified in the Option 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;(c) <u>Electronic Transfer</u>. Electronic transfer of the Offered Shares shall be made at the time of purchase in such names and in such denominations as the Representative shall specify.

&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>Tax Stamps</u>. The cost of original issue tax stamps, if any, in connection with the issuance and delivery of the Offered Shares by the Company to the Underwriters shall be borne by the Company. The Company shall pay and hold each Underwriter and any subsequent holder of the Offered Shares harmless from any and all liabilities with respect to or resulting from any failure or delay in paying United States federal and state and foreign stamp and other transfer taxes, if any, which may be payable or determined to be payable in connection with the original issuance, sale and delivery to such Underwriter of the Offered Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Representations and Warranties of the Company</u>. The Company represents and warrants to, and covenants with, each of the Underwriters 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>Compliance with Registration Requirements</u>. A registration statement on Form S-1 (Registration No. 333-290244) relating to the Offered Shares, including a preliminary prospectus and such amendments to such registration statement as may have been required prior to the date of this Agreement, has been prepared by the Company under the provisions of the Securities Act of 1933, as amended (the "**Act**"), and the rules and regulations (collectively referred to as the "**Rules and Regulations**") of the Securities and Exchange Commission (the "**Commission**") thereunder, and has been filed with the Commission. Copies of such registration statement and of each amendment thereto, if any, including the related preliminary prospectuses, heretofore filed by the Company with the Commission have been delivered to the Underwriters. The term "**Registration Statement**" means such registration statement on Form S-1 as amended at the time it becomes or became effective, including financial statements, all exhibits and any information deemed to be included or incorporated by reference therein, including any information deemed to be included pursuant to Rule 430A or Rule 430B of the Rules and Regulations, as applicable. If the Company files a registration statement to register a portion of the Offered Shares and relies on Rule 462(b) of the Rules and Regulations for such registration statement to become effective upon filing with the Commission (the "**Rule 462 Registration Statement**"), then any reference to the "Registration Statement" shall be deemed to include the Rule 462 Registration Statement, as amended from time to time. The term "preliminary prospectus" as used herein means a preliminary prospectus as contemplated by Rule 430 or Rule 430A of the Rules and Regulations included at any time as part of, or deemed to be part of or included in, the Registration Statement. The term "**Prospectus**" means the final prospectus in connection with this Offering as first filed with the Commission pursuant to Rule 424(b) of the Rules and Regulations or, if no such filing is required, the form of final prospectus included in the Registration Statement at the effective date, except that if any revised prospectus or prospectus supplement shall be provided to the Representative by the Company for use in connection with the Offered Shares which differs from the Prospectus (whether or not such revised prospectus or prospectus supplement is required to be filed by the Company pursuant to Rule 424(b)), the term "Prospectus" shall also refer to such revised prospectus or prospectus supplement, as the case may be, from and after the time it is first provided to the Representative for such use. Any reference herein to the terms "amend", "amendment" or "supplement" with respect to the Registration Statement, any preliminary prospectus or the Prospectus shall be deemed to refer to and include: (i) the filing of any document under the Securities Exchange Act of 1934, as amended, and together with the rules and regulations promulgated thereunder (collectively, the "**Exchange Act**") after the effective date of the Registration Statement, the date of such preliminary prospectus or the date of the Prospectus, as the case may be, which is incorporated therein by reference, and (ii) any such document so filed.

&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>Effectiveness of Registration</u>. The Registration Statement, any Rule 462 Registration Statement and any post-effective amendment thereto have been declared effective by the Commission under the Act or have become effective pursuant to Rule 462 of the Rules and Regulations. The Company has responded to all requests, if any, of the Commission for additional or supplemental information. No stop order suspending the effectiveness of the Registration Statement or any Rule 462 Registration Statement is in effect and no proceedings for such purpose have been instituted or are pending or, to the knowledge of the Company, are threatened by the Commission.

&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>Accuracy of Registration Statement</u>. Each of the Registration Statement, any Rule 462 Registration Statement and any post-effective amendment thereto, at the time it became effective, when any document filed under the Exchange Act was or is filed and at all subsequent times, complied and will comply in all material respects with the Act and the Rules and Regulations, and did not and will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein not misleading. The Prospectus, as amended or supplemented, as of its date and at all subsequent times when a prospectus is delivered or required (or, but for the provisions of Rule 172, would be required) by applicable law to be delivered in connection with sales of the Offered Shares, complied and will comply in all material respects with the Act, the Exchange Act and the Rules and Regulations, and did not or will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein not misleading, in the light of the circumstances under which they were made. Each preliminary prospectus (including the preliminary prospectus or prospectuses filed as part of the Registration Statement or any amendment thereto) complied when so filed in all material respects with Act, the Exchange Act and the Rules and Regulations, and each preliminary prospectus and the Prospectus delivered to the Representative for use in connection with this Offering is identical to the electronically transmitted copies thereof filed with the Commission on EDGAR, except to the extent permitted by Regulation S-T. The foregoing representations and warranties in this Section 3(c) do not apply to any statements or omissions made in reliance on and in conformity with information relating to the Underwriters furnished in writing to the Company by or on behalf of the Underwriters through the Representative specifically for inclusion in the Registration Statement or Prospectus or any amendment or supplement thereto. For all purposes of this Agreement, parties acknowledge and agree that the information furnished in writing to the Company by or on behalf of the Underwriters through the Representative consists solely of the information contained in the Plan of Distribution section of the Prospectus under the caption "Price Stabilization, Short Positions and Penalty Bids" and the caption "Electronic Distribution" (the "**Underwriters' Information**").

&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>Company Not Ineligible Issuer</u>. (i) At the time of filing the Registration Statement relating to the Offered Shares and (ii) as of the date of the execution and delivery of this Agreement (with such date being used as the determination date for purposes of this clause (ii)), the Company was not and is not an "ineligible issuer" (as defined in Rule 405 of the Rules and Regulations).

&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>Disclosure at the Time of Sale</u>. As of the Applicable Time, neither (i) the Issuer General Use Free Writing Prospectus(es) (as defined below) issued at or prior to the Applicable Time (as defined below), the most recent preliminary prospectus related to this Offering, and the information included on <u>Schedule II</u> hereto, all considered together (collectively, the "**General Disclosure Package**"), nor (ii) any individual Issuer Limited Use Free Writing Prospectus (as defined below), when considered together with the General Disclosure Package, included any untrue statement of a material fact or omitted to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The preceding sentence does not apply to statements in or omissions from the General Disclosure Package based upon and in conformity with written information furnished to the Company by the Underwriters through the Representative specifically for use therein, it being understood and agreed that the only such information furnished by the Underwriters consists of the Underwriters' Information.

As used in this subsection and elsewhere in this Agreement:

"**Applicable Time**" means 5:00 p.m. (New York City Time) on [·] or such other time as agreed by the Company and the Representative.

"**Issuer Free Writing Prospectus**" means any "issuer free writing prospectus," as defined in Rule 433 of the Rules and Regulations, relating to the Offered Shares that (i) is required to be filed with the Commission by the Company, (ii) is "a written communication that is a road show" within the meaning of Rule 433(d)(8)(i), whether or not required to be filed with the Commission or (iii) is exempt from filing pursuant to Rule 433(d)(5)(i) because it contains a description of the Offered Shares or of the Offering that does not reflect the final terms, in each case in the form filed or required to be filed with the Commission or, if not required to be filed, in the form retained in the Company's records pursuant to Rule 433(g).

"**Issuer General Use Free Writing Prospectus**" means any Issuer Free Writing Prospectus that is intended for general distribution to prospective investors, as evidenced by its being specified in <u>Schedule I</u> hereto.

"**Issuer Limited Use Free Writing Prospectus**" means any Issuer Free Writing Prospectus that is not an Issuer General Use Free Writing Prospectus.

&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>Issuer Free Writing Prospectuses</u>. Each Issuer Free Writing Prospectus, as of its issue date and at all subsequent times through the Prospectus Delivery Period (as defined below), does not include any information that conflicts with the information contained in the Registration Statement. The foregoing sentence does not apply to statements in or omissions from any Issuer Free Writing Prospectus based upon and in conformity with the Underwriters' Information. If at any time following the issuance of an Issuer Free Writing Prospectus there occurred an event or development as a result of which such Issuer Free Writing Prospectus conflicted with the information contained in the Registration Statement relating to the Offered Shares or included an untrue statement of material fact or omitted to state a material fact necessary in order to make the statements therein, in light of the circumstances prevailing at that subsequent time, not misleading, the Company has promptly notified the Representative and has promptly amended or supplemented, at its own expense, such Issuer Free Writing Prospectus to eliminate or correct such conflict, untrue statement or omission.

&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>Distribution of Offering Material by the Company</u>. The Company has not distributed and will not distribute, prior to the later of the Closing Date, any Option Closing Date and the completion of the Underwriters' distribution of the Offered Shares, any offering material in connection with the offering or sale of the Offered Shares, the Registration Statement, the preliminary prospectus, the Permitted Free Writing Prospectuses reviewed and consented to by the Representative and included in <u>Schedule I</u> hereto, and the Prospectus. None of the Marketing Materials, as of their respective issue dates and at all subsequent times through the Prospectus Delivery Period, include any information that conflicts with the information contained in the Registration Statement. If at any time following the issuance of any Marketing Material there occurred an event or development as a result of which such Marketing Material conflicted with the information contained in the Registration Statement relating to the Offered Shares or included an untrue statement of material fact or omitted to state a material fact necessary in order to make the statements therein, in light of the circumstances prevailing at that subsequent time, not misleading, the Company has promptly notified the Representative and has promptly amended or supplemented, at its own expense, such Marketing Material to eliminate or correct such conflict, untrue statement or omission.

&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>Subsidiaries</u>. All of the direct and indirect material subsidiaries of the Company (each, a "**Subsidiary**") are set forth in the Registration Statement, the General Disclosure Package and the Prospectus. The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any lien, charge, pledge, security interest, encumbrance, right of first refusal, preemptive right or other similar restriction (each, a "**Lien**"), and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase 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;(i) <u>Organization and Qualification</u>. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization, with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation nor default of any of the provisions of its respective certificate or articles of incorporation or other organizational or charter documents (as the same may be amended or restated form time to time, the "**Charter**") or bylaws. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not have or reasonably be expected to result in a material adverse change in the financial position or results of operations of the Company, or any change or development that, singularly or in the aggregate, would involve a material adverse change or a prospective material adverse change, in or affecting the condition (financial or otherwise), results of operations, stockholders' equity, business, management, assets, properties or prospects of the Company (a "**Material Adverse Change").**

&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) <u>Authorization; Enforcement</u>. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement, the Underwriters' Warrants and each other agreement, document, certificate or instrument required to be delivered pursuant to this Agreement (collectively, the "**Transaction Documents**") and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of this Agreement and each of the other Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the board of directors of the Company (the "**Board of Directors**") or the Company's stockholders in connection herewith or therewith other than in connection with the Required Approvals (as defined below). This Agreement and each other Transaction Document to which it is a party has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, assuming due authorization, execution and delivery by the Representative, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

&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) <u>No Conflicts</u>. The execution, delivery and performance by the Company of this Agreement and the other Transaction Documents to which it is a party, the issuance and sale of the Offered Shares and the Underwriters' Warrants and the consummation by it of the transactions contemplated hereby and thereby do not and will not (i) conflict with or violate any provision of the Charter or bylaws of the Company or any Subsidiary or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including without limitation federal and state securities laws and regulations and rules and regulations promulgated by the Food and Drug Administration of the U.S. Department of Health and Human Services (the "**FDA**") or by any foreign, federal, state or local regulatory authority performing functions similar to those performed by the FDA), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not reasonably be expected to result in, individually or in the aggregate, a Material Adverse Change.

&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) <u>Filings, Consents and Approvals</u>. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person (as defined below) in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than: (i) the filing with the Commission of the Registration Statement and the Prospectus, (ii) application(s) to the NYSE American for the listing of the Offered Shares for trading thereon in the time and manner required thereby, (iii) such filings, if any, as are required to be made under applicable state securities or Blue Sky laws, (iv) such notices, filings or authorizations as are required to be obtained or made under applicable rules of the Financial Industry Regulatory Authority, Inc. ("**FINRA**") and NYSE American and (v) such notices, filings or authorizations as have been obtained, given or made as of the date hereof (collectively, the "**Required Approvals**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) [Reserved.]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Securities Issued Pursuant to this Agreement</u>. The Offered Shares, the Underwriters' Warrants and the Underwriters' Warrant Shares are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Offered Shares, the Underwriters' Warrants and the Underwriters' Warrant Shares are not and will not be subject to the preemptive rights of any holders of any security of the Company or similar contractual rights granted by the Company; and all corporate action required to be taken for the authorization, issuance and sale of the Offered Shares, the Underwriters' Warrants and the Underwriters' Warrant Shares have been duly and validly taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Capitalization</u>. The capitalization of the Company as of the date hereof is as set forth in the Registration Statement, the General Disclosure Package and the Prospectus. Except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, the Company has not issued any capital stock, other than pursuant to the Company's equity incentive plans, the issuance of shares of the Company's Common Stock to employees, directors or consultants pursuant to the Company's equity incentive plans and pursuant to the conversion and/or exercise of any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time shares of Common Stock, including, without limitation, any debt, preferred stock, right, option, warrant or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, shares ("**Common Stock Equivalents**") and is disclosed in the Registration Statement, the General Disclosure Package and the Prospectus. No individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind (each, a "**Person**") has any right of first refusal, preemptive right, right of participation or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as a result of the purchase and sale of the Offered Shares and the Underwriters' Warrants or as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock or the capital stock of any Subsidiary, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents or capital stock of any Subsidiary. The issuance and sale of the Offered Shares will not obligate the Company or any Subsidiary to issue shares of Common Stock or other securities to any Person (other than the Underwriters) and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. There are no securities of the Company or any Subsidiary that have any anti-dilution or similar adjustment rights (other than adjustments for stock splits, recapitalizations and the like) to the exercise or conversion price, have any exchange rights, or reset rights. Except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, there are no outstanding securities or instruments of the Company or any Subsidiary that contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to redeem a security of the Company or such Subsidiary. The Company does not have any stock appreciation rights or "phantom stock" plans or agreements or any similar plan or agreement. All of the outstanding shares of capital stock of the Company are duly authorized, validly issued, fully paid and nonassessable, have been issued in compliance in all material respects with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Offered Shares. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company's capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company's stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) <u>Financial Statements</u>. The financial statements of the Company included in the Registration Statement, the General Disclosure Package and the Prospectus comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved ("**GAAP**"), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. The agreements and documents described in the Registration Statement, the General Disclosure Package and the Prospectus conform to the descriptions thereof contained therein and there are no agreements or other documents required by the Securities Act and the rules and regulations thereunder to be described in the Registration Statement, the General Disclosure Package and the Prospectus or to be filed with the Commission as exhibits to the Registration Statement, that have not been so described or filed. Each agreement or other instrument (however characterized or described) to which the Company is a party or by which it is or may be bound or affected and (i) that is referred to in the Registration Statement, the General Disclosure Package and the Prospectus or (ii) is material to the Company's business, has been duly authorized and validly executed by the Company, is in full force and effect in all material respects and is enforceable against the Company and, to the Company's knowledge, the other parties thereto, in accordance with its terms, except (x) as such enforceability may be limited by bankruptcy, insolvency, reorganization or similar laws affecting creditors' rights generally, (y) as enforceability of any indemnification or contribution provision may be limited under the federal and state securities laws and (z) that the remedy of specific performance and injunctive and other forms of equitable relief may be subject to the equitable defenses and to the discretion of the court before which any proceeding therefore may be brought. Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, none of such agreements or instruments has been assigned by the Company, and neither the Company nor, to the best of the Company's knowledge, any other party is in default thereunder and, to the best of the Company's knowledge, no event has occurred that, with the lapse of time or the giving of notice, or both, would constitute a default thereunder. To the best of the Company's knowledge, performance by the Company of the material provisions of such agreements or instruments will not result in a violation of any existing applicable law, rule, regulation, judgment, order or decree of any governmental agency or court, domestic or foreign, having jurisdiction over the Company or any of its assets or businesses, including, without limitation, those relating to environmental laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Material Changes; Undisclosed Events, Liabilities or Developments</u>. Since the date of the latest audited financial statements included within the Registration Statement, the General Disclosure Package and the Prospectus, except as reflected or specifically disclosed in the Registration Statement, the General Disclosure Package and the Prospectus filed prior to the date hereof, (i) there has been no Material Adverse Change, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate (as defined below), except pursuant to existing Company equity incentive plans or as set forth in the Registration Statement, the General Disclosure Package and the Prospectus. The Company does not have pending before the Commission any request for confidential treatment of information. Except for the issuance of the Offered Shares contemplated by this Agreement, no event, liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company or its Subsidiaries or their respective businesses, prospects, properties, operations, assets or financial condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least one trading day prior to the date that this representation is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) <u>Litigation</u>. There is no action, suit, proceeding, inquiry, arbitration, investigation, litigation or governmental proceeding pending or, to the Company's knowledge, threatened against, or involving the Company or, to the Company's knowledge, any executive officer or director which has not been disclosed in the Registration Statement, the General Disclosure Package and the Prospectus or in connection with the Company's listing application for the listing of the Common Stock on the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Labor Relations</u>. No labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company. None of the Company's or its Subsidiaries' employees is a member of a union that relates to such employee's relationship with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good. To the knowledge of the Company, no executive officer of the Company or any Subsidiary, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all United States federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>Compliance</u>. Except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, neither the Company nor any Subsidiary: (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any judgment, decree or order of any court, arbitrator or other governmental authority or (iii) is or has been in violation of any statute, rule, ordinance or regulation of any governmental authority, except in each case as would not, individually or in the aggregate, be expected to result in a Material Adverse Change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(u) <u>Environmental Laws</u>. The Company and its Subsidiaries (i) are in compliance in all material respects with all federal, state, local and foreign laws relating to pollution or protection of human health or the environment (including ambient air, surface water, groundwater, land surface or subsurface strata), including laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, "**Hazardous Materials**") into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations, issued, entered, promulgated or approved thereunder ("**Environmental Laws**"); (ii) have received all permits licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses; and (iii) are in compliance with all terms and conditions of any such permit, license or approval where in each clause (i), (ii) and (iii), the failure to so comply would not, individually or in the aggregate, be expected to result in a Material Adverse Change.

&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) <u>Regulatory</u>. (1) The preclinical studies and clinical trials (collectively, the "**Studies**") that are described in, or the results of which are referred to in, the Registration Statement, the General Disclosure Package or the Prospectus were and, if still pending, are being conducted in all material respects in accordance with the protocols, procedures and controls designed and approved for such Studies and with standard medical and scientific research procedures; each description of the results of such Studies is accurate and complete in all material respects and fairly presents the data derived from such Studies, and the Company and its Subsidiaries have no knowledge of any other Studies the results of which are materially inconsistent with, or otherwise call into question, the results described or referred to in the Registration Statement, the General Disclosure Package or the Prospectus; the Company and its Subsidiaries have made all such filings and obtained all such approvals as may be required by the FDA, the European Medicines Agency or any other U.S. or foreign governmental authority or medical device regulatory agency (collectively, the "**Regulatory Agencies**") to conduct the Studies; within the last five (5) years, neither the Company nor any of its Subsidiaries has received any notice of, or correspondence from, any Regulatory Agency requiring the termination, suspension or modification of any Studies that are described or referred to in the Registration Statement, the General Disclosure Package or the Prospectus; and the Company and its Subsidiaries have each operated and currently are in compliance in all material respects with all applicable rules, regulations and policies of the Regulatory Agencies. (2) The Company and the Subsidiaries possess all certificates, registrations, exemptions, authorizations, clearances, approvals, licenses and permits issued by the appropriate federal, state, local or foreign regulatory agencies or authorities necessary to conduct their respective businesses as described in the Registration Statement, the General Disclosure Package and the Prospectus, except where the failure to possess such permits would not be expected to result in a Material Adverse Change ("**Regulatory Permits**"); all of such Regulatory Permits are valid and in full force and effect; and neither the Company nor any Subsidiary has received any written notice of proceedings relating to the revocation, modification or impairment of rights of any Regulatory Permit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(w) <u>Title to Assets</u>. The Company and its Subsidiaries have good and marketable title to all real property owned by them, if any, and good and marketable title in all personal property owned by them, in each case, that is material to the business of the Company and the Subsidiaries, and in such case free and clear of all Liens, except for Liens that (i) are described in the Registration Statement, the General Disclosure Package and the Prospectus, (ii) would not be expected, individually or in the aggregate, to result in a Material Adverse Change, (iii) do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries or (iv) are for the payment of federal, state or other taxes, for which appropriate reserves have been made therefor in accordance with GAAP and, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance in all material respects.

&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) <u>Intellectual Property</u>. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar rights necessary or required for use in connection with their respective businesses as described in the Registration Statement, the General Disclosure Package and the Prospectus, except where the failure to own or possess such rights would not, individually or in the aggregate, result in a Material Adverse Change (collectively, the "**Intellectual Property Rights**"). To the knowledge of the Company, no action or use by the Company or any of its Subsidiaries necessary for the conduct of its business as currently carried on and as described in the Registration Statement and the Prospectus will involve or give rise to any infringement of, or license or similar fees for, any Intellectual Property Rights of others which has not been subsequently rectified. Neither the Company nor any of its Subsidiaries has received any notice alleging any such infringement, fee or conflict with asserted Intellectual Property Rights of others. Except as would not be expected to result, individually or in the aggregate, in a Material Adverse Change: (i) to the knowledge of the Company, there is no infringement, misappropriation or violation by third parties of any of the Intellectual Property Rights owned by the Company; (ii) there is no pending or, to the knowledge of the Company, threatened action, suit, proceeding or claim by others challenging the rights of the Company in or to any such Intellectual Property Rights, and the Company is unaware of any facts which would form a reasonable basis for any such claim, that would, individually or in the aggregate, together with any other claims in this Section 3(x), be expected to result in a Material Adverse Change; (iii) the Intellectual Property Rights owned by the Company and, to the knowledge of the Company, the Intellectual Property Rights licensed to the Company have not been adjudged by a court of competent jurisdiction invalid or unenforceable, in whole or in part, and there is no pending or, to the Company's knowledge, threatened action, suit, proceeding or claim by others challenging the validity or scope of any such Intellectual Property Rights, and the Company is unaware of any facts which would form a reasonable basis for any such claim that would, individually or in the aggregate, together with any other claims in this Section 3(x), reasonably be expected to result in a Material Adverse Change; (iv) there is no pending or, to the Company's knowledge, threatened action, suit, proceeding or claim by others that the Company infringes, misappropriates or otherwise violates any Intellectual Property Rights or other proprietary rights of others, the Company has not received any written notice of such claim and the Company is unaware of any other facts which would form a reasonable basis for any such claim that would, individually or in the aggregate, together with any other claims in this Section 3(x), be expected to result in a Material Adverse Change; and (v) to the Company's knowledge, no employee of the Company is in or has ever been in violation in any material respect of any term of any employment contract, patent disclosure agreement, invention assignment agreement, non-competition agreement, non-solicitation agreement, nondisclosure agreement or any restrictive covenant to or with a former employer where the basis of such violation relates to such employee's employment with the Company, or actions undertaken by the employee while employed with the Company and could reasonably be expected to result, individually or in the aggregate, in a Material Adverse Change which has not been subsequently rectified or settled. To the Company's knowledge, all material technical information developed by and belonging to the Company which has not been patented has been kept confidential. The Company is not a party to or bound by any options, licenses or agreements with respect to the Intellectual Property Rights of any other person or entity that are required to be set forth in the Registration Statement, the General Disclosure Package and the Prospectus and are not described therein. The Registration Statement, the General Disclosure Package and the Prospectus contain in all material respects the same description of the matters set forth in the preceding sentence. None of the technology employed by the Company has been obtained or is being used by the Company in violation of any contractual obligation binding on the Company or, to the Company's knowledge, any of its officers, directors or employees, or otherwise in violation of the rights of any persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(y) <u>Compliance with Health Care Laws</u>. The Company and its Subsidiaries are, and at all times have been, in material compliance with all Health Care Laws. For purposes of this Agreement, "**Health Care Laws**" mean: (i) the Federal Food, Drug, and Cosmetic Act (21 U.S.C. Section 301 et seq.), the Public Health Service Act (42 U.S.C. Section 201 et seq.), and the regulations promulgated thereunder; (ii) all applicable federal, state, local and foreign health care fraud and abuse laws, including, without limitation, the Anti-Kickback Statute (42 U.S.C. Section 1320a-7b(b)), the Civil False Claims Act (31 U.S.C. Section 3729 et seq.), the criminal false statements law (42 U.S.C. Section 1320a-7b(a)), 18 U.S.C. Sections 286 and 287, the health care fraud criminal provisions the Health Insurance Portability and Accountability Act of 1996, as amended by the Health Information Technology for Economic and Clinical Health Act (collectively, "**HIPAA**") (42 U.S.C. Section 1320d et seq.), the Stark Law (42 U.S.C. Section 1395nn), the civil monetary penalties law (42 U.S.C. Section 1320a-7a), the exclusion law (42 U.S.C. Section 1320a-7), the Physician Payments Sunshine Act (42 U.S.C. Section 1320-7h), and applicable laws governing government funded or sponsored healthcare programs; (iii) HIPAA, as amended by the Health Information Technology for Economic and Clinical Health Act, HITECH (42 U.S.C. Section 17921 et seq.); (iv) the Patient Protection and Affordable Care Act of 2010, as amended by the Health Care and Education Reconciliation Act of 2010; (v) licensure, quality, safety and accreditation requirements under applicable federal, state, local or foreign laws or regulatory bodies; (vi) all other local, state, federal, national, supranational and foreign laws, relating to the regulation of the Company or its Subsidiaries, and (vii) the directives and regulations promulgated pursuant to such statutes and any state or non-U.S. counterpart thereof. Neither the Company nor any of its Subsidiaries has received written notice of any claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action from any federal and/or state court or arbitrator or governmental or regulatory authority or third party alleging that any product operation or activity is in violation of any Health Care Laws nor, to the Company's knowledge, is any such claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration or other action threatened, except, with respect to any of the foregoing, such as would not, individually or in the aggregate, would reasonably be expected to result in a Material Adverse Change. To the Company's knowledge, there are no facts or circumstances that would reasonably be expected to give rise to material liability of the Company under any Health Care Laws. Neither the Company nor any of its Subsidiaries is a party to any corporate integrity agreements, monitoring agreements, consent decrees, settlement orders, or similar agreements with or imposed by any governmental or regulatory authority. Additionally, neither the Company, any of its Subsidiaries nor any of their respective employees, officers, directors, or agents has been excluded, suspended or debarred from participation in any U.S. federal health care program or human clinical research or, to the knowledge of the Company, is subject to a governmental inquiry, investigation, proceeding, or other similar action that could reasonably be expected to result in debarment, suspension, or exclusion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(z) <u>Insurance</u>. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including, but not limited to, directors and officers insurance coverage at least equal to $2,500,000. Neither the Company nor any Subsidiary has any reason to believe that it will not be able 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 without a significant increase in cost.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(aa) <u>Transactions With Affiliates and Employees</u>. Except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, none of the officers or directors of the Company or any Subsidiary and, to the knowledge of the Company, none of the employees of the Company or any Subsidiary is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, providing for the borrowing of money from or lending of money to or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee, stockholder, member or partner, in each case in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option plan 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;(bb) <u>Sarbanes-Oxley; Internal Accounting and Disclosure Controls</u>. The Company and the Subsidiaries are in compliance with any and all applicable requirements of the Sarbanes-Oxley Act of 2002 (the "**Sarbanes-Oxley Act**") that are effective and applicable to the Company as of the date hereof, and any and all applicable rules and regulations promulgated by the Commission thereunder that are effective as of the date hereof and as of the Closing Date or the Option Closing Date, as applicable. Except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, the Company and the Subsidiaries maintain a system of internal accounting controls that is designed to provide reasonable assurance that: (i) transactions are executed in accordance with management's general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability, (iii) access to assets is permitted only in accordance with management's general or specific authorization and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, the Company is not aware of any material weaknesses in its internal control over financial reporting. The Company's Auditor and the Audit Committee of the Board of Directors of the Company have been advised of: (i) all significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are known to the Company's management and that have adversely affected or are reasonably likely to adversely affect the Company' ability to record, process, summarize and report financial information; and (ii) any fraud known to the Company's management, whether or not material, that involves management or other employees who have a significant role in the Company's internal controls over financial reporting. Except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, the Company has developed and currently maintains disclosure controls and procedures that will comply with Rule 13a-15 or 15d-15 under the Exchange Act, and such controls and procedures are effective to ensure that all material information concerning the Company will be made known on a timely basis to the individuals responsible for the preparation of the Company's Exchange Act filings and other public disclosure 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;(cc) <u>Transactions Affecting Disclosure to FINRA</u>. Except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, no brokerage or finder's fees or commissions are or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. There are no other claims, arrangements, agreements or understandings of the Company or, to the Company's knowledge, any of its stockholders that may affect the Underwriters' compensation, as determined by FINRA. The Company has not made any direct or indirect payments (in cash, securities or otherwise) to (i) any person, as a finder's fee, investing fee or otherwise, in consideration of such person raising capital for the Company or introducing to the Company persons who provided capital to the Company, (ii) any FINRA member or (iii) any person or entity that has any direct or indirect affiliation or association with any FINRA member within the 12-month period prior to the date on which the Registration Statement was filed with the Commission or thereafter. No (i) officer or director of the Company or its subsidiaries, (ii) owner of five percent (5%) or more of the Company's unregistered securities or that of its subsidiaries or (iii) beneficial owner of any amount of the Company's unregistered securities acquired within the 180-day period immediately preceding the filing of the Registration Statement has any direct or indirect affiliation or association with any FINRA member. The Company will advise the Representative if it becomes aware that any officer, director or 5% or greater stockholder of the Company is or becomes an affiliate or associated person of a FINRA member participating in the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(dd) <u>Investment Company</u>. The Company is not, and is not an affiliate of, and immediately after receipt of payment for the Offered Shares, will not be or be an affiliate of, an "investment company" within the meaning of the Investment Company Act of 1940, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ee) <u>Registration Rights</u>. Except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, no Person has any right to cause the Company or any Subsidiary to effect the registration under the Securities Act of any securities of 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;(ff) <u>Exchange Act Registration; Stock Exchange Listing</u>. The Company has filed with the Commission a Form 8-A (File Number 001-_______) providing for the registration pursuant to Section 12(b) under the Exchange Act of the Common Stock. The registration of the Common Stock under the Exchange Act has been declared effective by the Commission on or prior to the date hereof. The Company has taken no action designed to, or likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act, nor has the Company received any notification that the Commission is contemplating terminating such registration. The Common Stock, including the Firm Shares and the Option Shares, have been approved for listing and is listed on New York Stock Exchange American LLC (the "**Exchange**") under the symbol "EMI", and the Company has taken no action designed to, or likely to have the effect of, delisting the Common Stock from the Exchange, nor has the Company received any notification that the Exchange is contemplating terminating such listing except as described in the Registration Statement, the General Disclosure Package and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(gg) <u>Board of Directors</u>. The Board of Directors of the Company is comprised of the persons set forth in the Registration Statement, the General Disclosure Package and the Prospectus. The qualifications of the persons serving as board members and the overall composition of the Board of Directors comply with the Sarbanes-Oxley Act and the rules and regulations promulgated thereunder and the listing rules of the Exchange that are, in each case, applicable to the Company. At least one member of the Audit Committee of the Board of Directors of the Company qualifies as an "audit committee financial expert," as such term is defined under Regulation S-K and the listing rules of the Exchange. In addition, at least a majority of the persons serving on the Board of Directors qualify as "independent," as defined under the listing rules of the Exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(hh) <u>No Integrated Offering</u>. Neither the Company or any Person acting on its behalf, nor, to the Company's knowledge, any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with the Company (as such terms are used in and construed under Rule 405 under the Securities Act) (each, an "**Affiliate**") or any Person acting on their behalf, has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Offered Shares to be integrated with prior offerings by the Company for purposes of any applicable shareholder approval provisions of the Exchange.

&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) <u>Solvency</u>. Based on the consolidated financial condition of the Company as of the Closing Date and as of the Option Closing Date, after giving effect to the receipt by the Company of the proceeds from the sale of the Offered Shares hereunder, the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, may be insufficient to pay all amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). Except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, the Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date or the Option Closing Date, as applicable. The Registration Statement, the General Disclosure Package and the Prospectus sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the purposes of this Agreement, "Indebtedness" means (x) any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the ordinary course of business), (y) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the Company's consolidated balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (z) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized in accordance with GAAP. Except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus, neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(jj) <u>Tax Status</u>. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Change, each of the Company and its Subsidiaries (i) has made or filed all United States federal, state and local income and all foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations and (iii) has set aside on its books provision reasonably adequate for the payment of all material taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company or of any Subsidiary know of no basis for any 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;(kk) <u>Foreign Corrupt Practices</u>. None of the Company and its Subsidiaries or, to the Company's knowledge, any director, officer, agent, employee or affiliate of the Company and its Subsidiaries or any other person acting on behalf of the Company and its Subsidiaries, has, directly or indirectly, given or agreed to give any money, gift or similar benefit (other than legal price concessions to customers in the ordinary course of business) to any customer, supplier, employee or agent of a customer or supplier, or official or employee of any governmental agency or instrumentality of any government (domestic or foreign) or any political party or candidate for office (domestic or foreign) or other person who was, is, or may be in a position to help or hinder the business of the Company (or assist it in connection with any actual or proposed transaction) that: (i) might subject the Company to any damage or penalty in any civil, criminal or governmental litigation or proceeding; (ii) if not given in the past, might have had a Material Adverse Change; or (iii) if not continued in the future, might adversely affect the assets, business, or operations of the Company. The Company has taken reasonable steps to ensure that its accounting controls and procedures are sufficient to cause the Company to comply in all material respects with the Foreign Corrupt Practices Act of 1977, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ll) <u>Independent Accountants</u>. The Company's accounting firm is Boulay, PLLP (the "**Auditor**"). The Auditor is an independent registered public accounting firm as required by the Securities Act and Rules and Regulations and the Public Company Accounting Oversight 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;(mm) <u>Regulation M Compliance</u>. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, 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 Offered Shares, (ii) sold, bid for, purchased or paid any compensation for soliciting purchases of any of the Offered Shares or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Underwriters in connection with the Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(nn) <u>Loans to Directors or Officers</u>. There are no outstanding loans, advances (except normal advances for business expenses in the ordinary course of business) or guarantees or indebtedness by the Company or its Subsidiaries to or for the benefit of any of the officers or directors of the Company, its Subsidiaries or any of their respective family members, except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(oo) <u>Office of Foreign Assets Control</u>. Neither the Company nor any Subsidiary nor, to the Company's knowledge, any director, officer, agent, employee or Affiliate of the Company or any Subsidiary is (i) currently subject to any United States sanctions administered or enforced by the Office of Foreign Assets Control of the U.S. Department of the Treasury ("<u>OFAC</u>"), the U.S. Department of State and including, without limitation, the designation as a "specially designated national" or "blocked person," the European Union, His Majesty's Treasury, the United Nations Security Council, or other relevant sanctions authority (collectively, "<u>Sanctions</u>"), or (ii) located, organized, or resident in a country or territory that is the subject or target of Sanctions (currently, the so-called Donetsk People's Republic, the so-called Luhansk People's Republic, or any other Covered Region of Ukraine identified pursuant to Executive Order 14065, Crimea, Cuba, Iran, North Korea and Syria) (a "<u>Sanctioned Jurisdiction</u>"), and the Company will not directly or indirectly use the proceeds of the offering of the Offered Shares hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity (I) to fund or facilitate any activities of or business with any person, or in any country or territory, that, at the time of such funding or facilitation, is the subject or the target of Sanctions or with a Sanctioned Jurisdiction or (II) in any other manner that will result in a violation by any person (including any person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions; neither the Company nor any Subsidiary is engaged in, or has, at any time knowingly engaged in, any dealings or transactions with or involving any individual or entity that was or is, as applicable, at the time of such dealing or transaction, the subject or target of Sanctions or with any Sanctioned Jurisdiction, in violation of Sanctions; and the Company and its Subsidiaries have instituted, and maintain, policies and procedures designed to promote and achieve continued compliance with Sanctions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(pp) <u>United States Real Property Holding Corporation</u>. The Company is not and has never been a United States real property holding corporation within the meaning of Section 897 of the Internal Revenue Code of 1986, as amended, and the Company shall so certify upon the Representative's request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(qq) <u>Bank Holding Company Act</u>. Neither the Company nor any of its Subsidiaries or Affiliates is subject to the Bank Holding Company Act of 1956, as amended (the "**BHCA**"), and to regulation by the Board of Governors of the Federal Reserve System (the "**Federal Reserve**"). Neither the Company nor any of its Subsidiaries or Affiliates owns or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its Subsidiaries or Affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(rr) <u>Money Laundering</u>. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with applicable financial record-keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the "**Money Laundering Laws**"), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any Subsidiary with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or any Subsidiary, threatened.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ss) <u>Cybersecurity</u>. The Company and its Subsidiaries' information technology assets and equipment, computers, systems, networks, hardware, software, websites, applications, and databases (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 and its Subsidiaries as currently conducted, and, to the knowledge of the Company, free and clear of all material bugs, errors, defects, Trojan horses, time bombs, malware and other corruptants. The Company and its Subsidiaries have implemented commercially reasonable physical, technical and administrative controls, policies, procedures, and safeguards to maintain and protect their material confidential information and the integrity, continuous operation, redundancy and security of all IT Systems and data, including Personal Data (as defined herein), used in connection with their businesses. "**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 GDPR (as defined below); (iv) any information which would qualify as "protected health information" under 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. Except as disclosed in the Registration Statement, the General Disclosure Package or the Prospectus, 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 and its Subsidiaries are 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(tt) <u>Compliance with Data Privacy Laws</u>. The Company and its Subsidiaries are, and at all prior times were, in material compliance with all applicable state, federal and foreign data privacy and security laws and regulations, and the Company and its Subsidiaries are in compliance with the European Union General Data Protection Regulation ("**GDPR**") (EU 2016/679) (collectively, the "**Privacy Laws**"). To ensure compliance with the Privacy Laws, the Company and its Subsidiaries have in place, comply with, and take appropriate steps reasonably designed to ensure compliance in all material respects with their 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 and its Subsidiaries have, to the knowledge of the Company, 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 further certifies that neither it nor any Subsidiary: (i) has 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.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(uu) <u>Officer's Certificates</u>. Any certificate signed by any officer of the Company or any of its Subsidiaries delivered to the Representative or its counsel shall be deemed a representation and warranty by the Company to the Underwriters as to the matters covered thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vv) <u>Lock-Up Agreements</u>. <u>Schedule III</u> hereto contains a complete and accurate list of the Company's officers and directors, and each holder of 2% or more of the Company's issued and outstanding Common Stock prior to the consummation of the Offering, on a fully-diluted basis (collectively, the "**Lock-Up Parties**"). The Company has caused each of the Lock-Up Parties to deliver to the Representative an executed Lock-Up Agreement, in the form attached hereto as <u>Exhibit A</u> (the "**Lock-Up Agreement**"), prior to the execution 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;(ww) <u>Industry Data</u>. The statistical and market-related data included in each of the Registration Statement, the General Disclosure Package and the Prospectus are based on or derived from sources that the Company reasonably and in good faith believes are reliable and accurate or represent the Company's good faith estimates that are made on the basis of data derived from such sources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) <u>Testing-the Waters Communications</u>. The Company has not (i) alone engaged in any Testing-the-Waters Communications, other than Testing-the-Waters Communications with the written consent of the Representative and with entities that are qualified institutional buyers within the meaning of Rule 144A under the Securities Act or institutions that are accredited investors within the meaning of Rule 501 under the Securities Act and (ii) authorized anyone other than the Representative to engage in Testing-the-Waters Communications. The Company has not distributed any Written Testing-the-Waters Communications. "Testing-the-Waters Communication" means any oral or written communication with potential investors undertaken in reliance on Section 5(d) of the Securities Act. "Written Testing-the-Waters Communication" means any Testing-the-Waters Communication that is a written communication within the meaning of Rule 405 under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Agreements of the Company</u>. The Company agrees with the Underwriters 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>Amendments and Supplements to Registration Statement</u>. The Company shall not, either prior to any effective date or thereafter during such period as the Prospectus is required by law to be delivered (whether physically or through compliance with Rule 172 of the Rules and Regulations or any similar rule) (the "**Prospectus Delivery Period**") in connection with sales of the Offered Shares by an Underwriter or dealer, amend or supplement the Registration Statement, the General Disclosure Package or the Prospectus, unless a copy of such amendment or supplement thereof shall first have been submitted to the Representative within a reasonable period of time prior to the filing or, if no filing is required, the use thereof and the Representative shall not have objected thereto in good faith.

&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>Amendments and Supplements to the Registration Statement, the General Disclosure Package and the Prospectus and Other Securities Act Matters</u>. During the Prospectus Delivery Period, the Company will comply with the Securities Act, the Rules and Regulations, and the Exchange Act so far as necessary to permit the completion of the distribution of the Offered Shares as contemplated by the provisions hereof, the General Disclosure Package, the Registration Statement and the Prospectus. If, during the Prospectus Delivery Period, any event or development shall occur or condition exist as a result of which the General Disclosure Package or the Prospectus, as then amended or supplemented, would include any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances then prevailing or under which they were made, as the case may be, not misleading, or if it shall be necessary to amend or supplement the General Disclosure Package or the Prospectus to comply with law, the Company agrees to (i) promptly notify the Representative of any such event or condition and (ii) promptly prepare (subject to Section 4(a) and 4(f) hereof), and file with the Commission (and use its best efforts to have any amendment to the Registration Statement or any new registration statement to be declared effective) and furnish at its own expense to the Representative (and, if applicable, to dealers), amendments or supplements to the Registration Statement, the General Disclosure Package or the Prospectus, or any new registration statement, necessary in order to make the statements in the General Disclosure Package or the Prospectus as so amended or supplemented, in the light of the circumstances then prevailing or under which they were made, as the case may be, not misleading, or so that the Registration Statement or the Prospectus, as amended or supplemented, will comply with law.

&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>Notifications to the Underwriters</u>. The Company shall use its best efforts to cause the Registration Statement to become effective, and shall notify the Representative promptly, and shall confirm such advice in writing, (i) when any post-effective amendment to the Registration Statement has become effective and when any post-effective amendment thereto becomes effective, (ii) of any request by the Commission for amendments or supplements to the Registration Statement or the Prospectus or for additional information, (iii) of the commencement by the Commission or by any state securities commission of any proceedings for the suspension of the qualification of any of the Offered Shares for offering or sale in any jurisdiction or of the initiation, or the threatening, of any proceeding for that purpose, including, without limitation, the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or the initiation of any proceedings for that purpose or the threat thereof, (iv) of the happening of any event during the Prospectus Delivery Period that in the judgment of the Company makes any statement made in the Registration Statement or the Prospectus misleading (including by omission) or untrue or that requires the making of any changes in the Registration Statement or the Prospectus in order to make the statements therein, in light of the circumstances in which they are made, not misleading (including by omission), and (v) of receipt by the Company or any representative of the Company of any other communication from the Commission relating to the Company, the Registration Statement, any preliminary prospectus or the Prospectus. If at any time the Commission shall issue any order suspending the effectiveness of the Registration Statement, the Company shall use best efforts to obtain the withdrawal of such order at the earliest possible moment. The Company shall comply with the provisions of and make all requisite filings with the Commission pursuant to Rules 424(b), 430A, 430B and 462(b) of the Rules and Regulations and to notify the Representative promptly of all such filings.

&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>Executed Registration Statement</u>. The Company shall furnish to the Representative, without charge, one signed copy of the Registration Statement, and of any post-effective amendment thereto, including financial statements and schedules, and all exhibits thereto, and shall furnish to the Representative, without charge, a copy of the Registration Statement and any post-effective amendment thereto, including financial statements and schedules but without exhibits.

&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>Undertakings</u>. The Company shall comply with all the provisions of any undertakings contained and required to be contained in the Registration Statement.

&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>Prospectus</u>. The Company shall prepare the Prospectus in a form approved by the Representative and shall file such Prospectus with the Commission pursuant to Rule 424(b) of the Rules and Regulations with a filing date not later than the second business day following the execution and delivery of this Agreement. Promptly after the effective date of the Registration Statement, and thereafter from time to time during the period when the Prospectus is required (or, but for the provisions of Rule 172 under the Act, would be required) to be delivered, the Company shall deliver to the Representative, without charge, as many electronic copies of the Prospectus and any amendment or supplement thereto as the Representative may reasonably request. The Company consents to the use of the Prospectus and any amendment or supplement thereto by the Representative and by all dealers to whom the Offered Shares may be sold, both in connection with the offering or sale of the Offered Shares and for any period of time thereafter during the Prospectus Delivery Period. If, during the Prospectus Delivery Period any event shall occur that in the judgment of the Company or counsel to the Underwriters should be set forth in the Prospectus in order to make any statement therein, in the light of the circumstances under which it was made, not misleading (including by omission), or if it is necessary to supplement or amend the Prospectus to comply with law, the Company shall forthwith prepare and duly file with the Commission an appropriate supplement or amendment thereto, and shall deliver to the Representative, without charge, such number of electronic copies thereof as the Representative may reasonably request.

&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>Permitted Free Writing Prospectuses</u>. The Company represents and agrees that it has not made and, unless it obtains the prior consent of the Representative, will not make, any offer relating to the Offered Shares that would constitute a "free writing prospectus" as defined in Rule 405 of the Rules and Regulations, required to be filed with the Commission or retained by the Company under Rule 433 of the Rules and Regulations; provided that the prior written consent of the Representative hereto shall be deemed to have been given in respect of the Issuer Free Writing Prospectuses included in <u>Schedule I</u> hereto. Any such free writing prospectus consented to by the Representative is herein referred to as a "Permitted Free Writing Prospectus." The Company agrees that (i) it has treated and will treat, as the case may be, each Permitted Free Writing Prospectus as an Issuer Free Writing Prospectus and (ii) has complied and will comply, as the case may be, with the requirements of Rules 164 and 433 of the Act applicable to any Permitted Free Writing Prospectus, including in respect of timely filing with the Commission, legending and record keeping. If at any time following the issuance of an Issuer Free Writing Prospectus there occurs an event or development as a result of which such Issuer Free Writing Prospectus would conflict with the information contained in the Registration Statement relating to the Offered Shares or would include an untrue statement of material fact or would omit to state a material fact necessary in order to make the statements therein, in light of the circumstances prevailing at that subsequent time, not misleading, the Company will promptly notify the Representative and will promptly amend or supplement, at its own expense, such Issuer Free Writing Prospectus to eliminate or correct such conflict, untrue statement or omission. The Company represents that it has satisfied and agrees that it will satisfy the conditions in Rule 433 to avoid a requirement to file with the Commission any electronic road show.

&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>Compliance with Blue Sky Laws</u>. Prior to any public offering of the Offered Shares by the Underwriters, the Company shall cooperate with the Representative and Representative's Counsel in connection with the registration or qualification (or the obtaining of exemptions from the application thereof) of the Offered Shares for offer and sale under the securities or Blue Sky laws of such jurisdictions as the Representative may request, provided, however, that in no event shall the Company be obligated to qualify a public offering outside the United States or to do business as a foreign corporation in any jurisdiction where it is not now so qualified, to qualify or register as a dealer in securities, to take any action which would subject it to general service of process in any jurisdiction where it is not now so subject or subject itself to ongoing taxation in respect of doing business in any jurisdiction in which it is not so subject.

&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) <u>Delivery of Financial Statements</u>. During the period of three years commencing on the effective date of the Registration Statement, the Company shall furnish or make available to the Representative and each other Underwriter who may so request copies of such financial statements and other periodic and special reports as the Company may from time to time distribute generally to the holders of any class of its capital stock. Documents filed with the Commission pursuant to EDGAR shall satisfy the Company's obligation to furnish copies 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;(j) <u>Availability of Earnings Statements</u>. The Company shall make generally available to holders of its securities as soon as may be practicable but in no event later than the first day of the 15th full calendar month following the date of this Agreement, an earnings statement (which need not be audited but shall be in reasonable detail) covering a period of at least 12 months commencing after the date of this Agreement, and satisfying the provisions of Section 11(a) of the Act (including Rule 158 of the Rules and Regulations).

&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) <u>Payment of General Expenses</u>. The Company hereby agrees to pay on each of the Closing Date and the Option Closing Date, if any, to the extent not paid at the Closing Date, all expenses incident to the performance of the obligations of the Company under this Agreement, including, but not limited to: (a) all filing fees and communication expenses relating to the registration of the Offered Shares to be sold in the Offering (including the Option Shares) with the Commission; (b) all Public Filing System filing fees associated with the review of the Offering by FINRA; (c) all fees and expenses relating to the listing of the Common Stock on the Exchange and such other stock exchanges as the Company and the Representative together determine; (d) all fees, expenses and disbursements relating to background checks of the Company's officers and directors in an amount not to exceed $7,500 in the aggregate; (e) all fees, expenses and disbursements relating to the registration, qualification or exemption of the Offered Shares under the securities laws of such foreign jurisdictions as the Representative may reasonably designate; (f) the costs of all mailing and printing of the underwriting documents (including, without limitation, this Agreement, any "blue sky" surveys and, if appropriate, any Agreement Among Underwriters, Selected Dealers' Agreement, Underwriters' Questionnaire and Power of Attorney), Registration Statements, Prospectuses, Warrants and all amendments, supplements and exhibits thereto and as many preliminary and final Prospectuses as the Representative may reasonably deem necessary; (g) the costs and expenses of a financial public relations firm; (h) the costs of preparing, printing and delivering certificates representing the Offered Shares; (i) fees and expenses of the transfer agent for the Common Stock; (j) stock transfer and/or stamp taxes, if any, payable upon the transfer of securities from the Company to the Underwriters; (k) the costs associated with post-Closing advertising the Offering; (l) the costs associated with receiving commemorative mementos and lucite tombstones; (m) the fees and expenses of the Company's accountants; (n) the fees and expenses of the Company's legal counsel and other agents and representatives; (o) fees and expenses of Representative Counsel; (p) the costs associated with the Underwriter's use of Ipreo's book-building, prospectus tracking and compliance software for the Offering; (q) the Underwriters' actual accountable "road show" expenses; and (r) the Representative's market making and trading, and clearing firm settlement expenses for the Offering. The expenses to be paid or reimbursed by the Company to the Underwriters ("**Accountable Out-of-Pocket Expenses**") under this Section 4(k) shall not exceed $150,000. The Company has advanced an amount of $25,000 (the "**Advance**") to the Representative in anticipation of any Accountable Out-of-Pocket Expenses to be incurred by the Representative, which Advance shall be returned to the Company to the extent not actually incurred.

&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) <u>Non-accountable Expenses</u>. The Company further agrees that, in addition to the expenses payable pursuant to Section 4(k), (i) on the Closing Date, it shall pay to the Representative, by deduction from the net proceeds of the Offering contemplated herein, a non-accountable expense allowance equal to one percent (1.0%) of the gross proceeds received by the Company from the sale of the Firm Shares, and (ii) on the Option Closing Date, if applicable, it shall pay to the Representative, by deduction from the net proceeds of the Offering contemplated herein, a non-accountable expense allowance equal to one percent (1.0%) of the gross proceeds received by the Company from the sale of the Option Shares; provided, however, that in the event that the Offering is terminated under Section 7 hereof, the Company agrees to reimburse the Underwriters pursuant to Section 7(b) 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;(m) <u>No Stabilization or Manipulation</u>. Neither the Company nor, to its knowledge, any of its employees, directors or shareholders (without the consent of the Representative) has taken or shall take, directly or indirectly, any action designed to or that has constituted or that might reasonably be expected to cause or result in, under Regulation M of the Exchange Act, or otherwise, stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Offered 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;(n) <u>Use of Proceeds</u>. The Company shall apply the net proceeds from the Offering substantially in the manner set forth under "Use of Proceeds" in the Registration Statement, General Disclosure Package and the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) <u>Lock-Up Agreements of Company, Management and Affiliates</u>**.** The Company shall not, for a period of 180 days after the Closing Date (the "**Lock-Up Period**"), without the prior written consent of the Representative (which consent may be withheld in its sole discretion), (1) offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to sell, grant any option, right or warrant to purchase, lend or otherwise transfer or dispose of, directly or indirectly, any shares of capital stock of the Company, warrants or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company; (2) file with the Commission a registration statement under the Act to register any shares of capital stock of the Company, warrants or any securities convertible into or exercisable or exchangeable for shares of capital stock of the Company; (3) complete any offering of debt securities of the Company, other than entering into a line of credit with a traditional bank; (4) enter into any swap or other derivatives transaction that transfers to another, in whole or in part, directly or indirectly, any of the economic benefits or risks of ownership of shares of capital stock of the Company; or (5) repurchase any shares of its Common Stock, whether any such transaction described in clause (1), (2), (3) (4) or (5) above is to be settled by delivery of shares of capital stock of the Company or other securities, in cash or otherwise. The restrictions contained in this Section 4(o) shall not apply to (A) the Offered Shares to be sold hereunder, (B) the issuance by the Company of shares of Common Stock upon the exercise or conversion of options, warrants or other convertible securities outstanding, and as in effect, on the date of this Agreement, which is disclosed in the Registration Statement, Disclosure Package and Prospectus and (C) the issuance by the Company of any stock options or shares of capital stock of the Company under any equity compensation plan of the Company; provided that in each of (B) and (C) above, the underlying shares shall be restricted from sale during the entire Lock-Up Period. Shares, dividend equivalent rights or other equity based awards issued, or options to purchase Shares granted, pursuant to existing employee benefit plans of the Company referred to in the Registration Statement, the General Disclosure Package or the Prospectus (including the filing of a registration statement on Form S-8 relating to such existing employee benefit plans of the Company referred to in the Registration Statement, the General Disclosure Package or the Prospectus). The Company has caused (i) each of its directors, officers and their respective affiliates and (ii) any holder(s) of an aggregate of 1,696,112 of the outstanding Shares as of the effective date of the Registration Statement (and all holders of securities exercisable for or convertible into Shares) to enter into agreements with the Representative in the form set forth in Exhibit 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;(p) <u>Lock-Up Releases</u>. If the Representative, in its sole discretion, agrees to release or waive the restrictions set forth in the Lock-Up Agreements described in Section 3(vv) hereof for an officer or director of the Company and provide the Company with notice of the impending release or waiver at least three (3) business days before the effective date of the release or waiver, the Company agrees to announce the impending release or waiver by a press release substantially in the form of Exhibit B hereto through a major news service at least two (2) business days before the effective date of the release or waiver.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) <u>Listing</u>. The Company will use its reasonable best efforts to maintain the listing of the shares of Common Stock on the Exchange for at least three years after 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;(r) <u>Internal Controls</u>. The Company shall maintain a system of internal accounting controls sufficient to provide reasonable assurances that: (i) transactions are executed in accordance with management's general or specific authorization; (ii) transactions are recorded as necessary in order to permit preparation of financial statements in accordance with GAAP and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management's general or specific authorization; and (iv) the recorded accountability for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(s) <u>Auditor</u>. As of the date of this Agreement, the Company has retained an independent registered public accounting firm reasonably acceptable to the Representative, and the Company shall continue to retain a nationally recognized independent registered public accounting firm for a period of at least three (3) years after the date of this Agreement. The Representative acknowledges that the Auditor is acceptable to the Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(t) <u>No Fiduciary Duties</u>. The Company acknowledges and agrees that the Underwriters' responsibility to the Company is solely contractual in nature and that none of the Underwriters or their affiliates or any selling agent shall be deemed to be acting in a fiduciary capacity, or otherwise owes any fiduciary duty to the Company or any of its affiliates in connection with the Offering and the other transactions contemplated by 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;(u) [Reserved]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Conditions of the Obligations of the Underwriters</u>. The obligation of the Underwriters to purchase the Firm Shares on the Closing Date or the Option Shares on the Option Closing Date, as the case may be, as provided herein is subject to the accuracy of the representations and warranties of the Company, the performance by the Company of its covenants and other obligations hereunder and to the following additional conditions:

&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>Effectiveness of Registration Statement and Prospectus Filings</u>. Notification that the Registration Statement has become effective shall be received by the Representative not later than 4:30 p.m., New York City time, on the date of this Agreement or at such later date and time as shall be consented to in writing by the Representative and all filings made pursuant to Rules 424, 430A or 430B of the Rules and Regulations, as applicable, shall have been made or will be made prior to the Closing Date in accordance with all such applicable rules.

&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>No Stop Orders, Requests for Information and No Amendments</u>. (i) At each of the Closing Date and any Option Closing Date, no stop order suspending the effectiveness of the Registration Statement or any post-effective amendment thereto shall have been issued and no proceedings for that purpose shall be pending or are, to the knowledge of the Company, threatened by the Commission, (ii) no order suspending the qualification or registration of the Offered Shares under the securities or Blue Sky laws of any jurisdiction shall be in effect and no proceeding for such purpose shall be pending before or threatened or contemplated by the authorities of any such jurisdiction, (iii) any request for additional information on the part of the staff of the Commission or any such authorities shall have been complied with to the satisfaction of the staff of the Commission or such authorities and (iv) after the date hereof no amendment or supplement to the Registration Statement or the Prospectus shall have been filed unless a copy thereof was first submitted to the Representative and the Representative did not object thereto in good faith, and the Representative shall have received certificates, dated the Closing Date and the Option Closing Date and signed by the Chief Executive Officer or the Chairman of the Board of Directors and the Chief Financial Officer of the Company in their capacities as such, and not individually, (who may, as to proceedings threatened, certify to their knowledge), to the effect of clauses (i), (ii) and (iii).

&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>No Material Changes</u>. Prior to and on each of the Closing Date and each Option Closing Date, if any: (i) there shall have been no Material Adverse Change or development involving a prospective Material Adverse Change in the condition or the business activities, financial or otherwise, of the Company from the latest dates as of which such condition is set forth in the Registration Statement, the General Disclosure Package and the Prospectus; (ii) no action, suit or proceeding, at law or in equity, shall have been pending or threatened against the Company or any its officers and directors before or by any court or federal, state or foreign commission, board or other administrative agency wherein an unfavorable decision, ruling or finding may reasonably be expected to cause a Material Adverse Change, except as set forth in the Registration Statement, the General Disclosure Package and the Prospectus; (iii) no stop order shall have been issued under the Securities Act and no proceedings therefor shall have been initiated or threatened by the Commission; and (iv) the Registration Statement, the General Disclosure Package and the Prospectus and any amendments or supplements thereto shall contain all material statements which are required to be stated therein in accordance with the Securities Act and the Rules and Regulations and shall conform in all material respects to the requirements of the Securities Act and the Rules and Regulations, and neither the Registration Statement, the General Disclosure Package nor the Prospectus nor any amendment or supplement thereto shall contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

&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>Closing Date Opinions of Counsel</u>. On the Closing Date, the Representative shall have received the favorable opinions and negative assurance statements of Holland & Hart LLP, counsel to the Company, dated the Closing Date and addressed to the Representative, in form and substance reasonably satisfactory to the Representative.

&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>Option Closing Date Opinions of Counsel</u>**.** On the Option Closing Date, if any, the Representative shall have received the favorable opinions and negative assurance statements of Holland & Hart LLP, dated the Option Closing Date and addressed to the Representative, in form and substance reasonably satisfactory to the Representative.

&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>Auditor' Comfort Letter</u>. At the time this Agreement is executed, the Representative shall have received a cold comfort letter from the Auditor containing statements and information of the type customarily included in accountants' comfort letters with respect to the financial statements and certain financial information contained in the Registration Statement, the General Disclosure Package and the Prospectus, addressed to the Representative and in form and substance satisfactory in all respects to the Representative and to the Auditor, dated as of the date of this Agreement. At the Closing Date and any Option Closing Date, as the case may be, the Representative shall have received from the Auditor a letter dated such date, as applicable, in form and substance reasonably satisfactory to the Representative and Representative's Counsel, to the effect that the Auditor reaffirms the statements made in the letter furnished by them pursuant to the preceding sentence, except that the specified date referred to shall be a date not more than three (3) business days prior to the Closing Date or the Option Closing Date, as applicable.

&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>Officers' Certificates</u>. The Company shall have furnished to the Representative a certificate, dated the Closing Date and any Option Closing Date (if such date is other than the Closing Date), of its Chief Executive Officer and its Chief Financial Officer stating on behalf of the Company and not in an individual capacity that: (i) such officers have carefully examined the Registration Statement, the General Disclosure Package, any Issuer Free Writing Prospectus and the Prospectus and, in their opinion, the Registration Statement and each amendment thereto, as of the Applicable Time and as of the Closing Date (or any Option Closing Date if such date is other than the Closing Date) did not include any untrue statement of a material fact and did not omit to state a material fact required to be stated therein or necessary to make the statements therein in light of the circumstances under which they were made not misleading, and the General Disclosure Package, as of the Applicable Time and as of the Closing Date (or any Option Closing Date if such date is other than the Closing Date), any Issuer Free Writing Prospectus as of its date and as of the Closing Date (or any Option Closing Date if such date is other than the Closing Date), the Prospectus and each amendment or supplement thereto, as of the respective date thereof and as of the Closing Date, did not include any untrue statement of a material fact and did not omit to state a material fact necessary in order to make the statements therein, in light of the circumstances in which they were made, not misleading; (ii) since the effective date of the Registration Statement, no event has occurred which should have been set forth in a supplement or amendment to the Registration Statement, the Pricing Disclosure Package or the Prospectus; (iii) to the best of their knowledge after reasonable investigation, as of the Closing Date (or any Option Closing Date if such date is other than the Closing Date), the representations and warranties of the Company in this Agreement are true and correct in all material respects and the Company has complied with all agreements and satisfied all conditions on its part to be performed or satisfied hereunder at or prior to the Closing Date (or any Option Closing Date if such date is other than the Closing Date); and (iv) there has not been, subsequent to the date of the most recent audited financial statements included in the General Disclosure Package, any Material Adverse Change, except as set forth in the Prospectus.

&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>Secretary's Certificate</u>. At each of the Closing Date and the Option Closing Date, if any, the Representative shall have received a certificate of the Company signed by the Secretary of the Company, dated the Closing Date or the Option Date, as the case may be, respectively, certifying on behalf of the Company and not in an individual capacity: (i) that each of the Charter and bylaws is true and complete, has not been modified and is in full force and effect; (ii) that the resolutions of the Company's Board of Directors relating to the Offering are in full force and effect and have not been modified; (iii) as to the accuracy and completeness of all correspondence between the Company or its counsel and the Commission; and (iv) as to the incumbency of the officers of the Company. The documents referred to in such certificate shall be attached to such certificate.

&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) <u>Lock-Up Agreements</u>. At the date of this Agreement, the Representative shall have received the executed copies of the Lock-Up Agreements from each of the persons listed in <u>Schedule III</u> hereto.

&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) <u>Underwriters' Warrant</u>. On the Closing Date the Company shall have delivered to the Underwriters an executed copy of the Underwriters' 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;(k) <u>Stock Exchange Listing</u>. The Common Stock shall have been approved for listing on the Exchange, subject to official notice of issuance.

&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) <u>FINRA Clearance</u>**.** The Representative shall have received clearance from FINRA as to the amount of compensation allowable or payable to the Underwriters as described in the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) <u>Additional Documents</u>. At the Closing Date and at each Option Closing Date (if any) Representative Counsel shall have been furnished with such documents and opinions as they may require for the purpose of enabling Representative Counsel to deliver an opinion to the Underwriters, or in order to evidence the accuracy of any of the representations or warranties, or the fulfillment of any of the conditions, herein contained; and all proceedings taken by the Company in connection with the issuance and sale of the Public Securities as herein contemplated shall be satisfactory in form and substance to the Representative and Representative Counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) [reserved].

If any of the conditions hereinabove provided for in this Section 5 shall not have been fulfilled when and as required by this Agreement to be fulfilled, the obligations of the Underwriters hereunder may be terminated by the Representative by notifying the Company of such termination in writing at or prior to the Closing Date or any Option Closing Date, as the case may be.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Indemnification</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>Indemnification of the Underwriters</u>. The Company shall indemnify and hold harmless each Underwriter, its affiliates, shareholders, directors, officers, employees and agents of such Underwriter and each person, if any, who controls such Underwriter within the meaning of Section 15 of the Act or Section 20 of the Exchange Act (collectively, the "**Underwriter Indemnified Parties**," and each an "**Underwriter Indemnified Party**"), from and against any and all losses, claims, liabilities, expenses and damages (including, but not limited to, any and all legal or other expenses reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever, whether arising out of any action between any of the Underwriter Indemnified Parties and the Company or between any of the Underwriter Indemnified Parties and any third party, or otherwise) , to which they, or any of them, may become subject under the Act, the Exchange Act or other federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, liabilities, expenses or damages arise out of or are based on any untrue statement or alleged untrue statement of a material fact contained, or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in (i) the Registration Statement, the General Disclosure Package, any preliminary prospectus, any Issuer Free Writing Prospectus or the Prospectus (or any amendment or supplement to any of the foregoing); (ii) any materials or information provided to investors by, or with the approval of, the Company in connection with the marketing of the Offering, including any "road show" or investor presentations made to investors by the Company (whether in person or electronically) (collectively, "**Marketing Materials**"); or (iii) any application or other document or written communication executed by the Company or based upon written information furnished by the Company in any jurisdiction in order to qualify the Offered Shares under the securities laws thereof or filed with the Commission, any state securities commission or agency, the Exchange or any other national securities exchange; provided, however, that the Company shall not be liable to the extent that such loss, claim, liability, expense or damage is based on any untrue statement or omission or alleged untrue statement or omission made in reliance on and in conformity with Underwriters' Information. This indemnity agreement will be in addition to any liability that the Company might otherwise have. The Company also agrees that it will reimburse each Underwriter Indemnified Party for all fees and expenses (including, but not limited to, any and all legal or other expenses reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever, whether arising out of any action between any of the Underwriter Indemnified Parties and the Company or between any of the Underwriter Indemnified Parties and any third party, or otherwise) (collectively, the "**Expenses**"), and further agrees wherever and whenever possible to advance payment of Expenses as they are incurred by an Underwriter Indemnified Party in investigating, preparing, pursuing or defending any 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;(b) <u>Procedures</u>. If any action is brought against an Underwriter Indemnified Party in respect of which indemnity may be sought against the Company pursuant to Section 6(a), such Underwriter Indemnified Party shall promptly notify the Company in writing of the institution of such action and the Company shall assume the defense of such action, including the employment and fees of counsel (subject to the reasonable approval of such Underwriter Indemnified Party) and payment of actual expenses if an Underwriter Indemnified Party requests that the Company do so. Such Underwriter Indemnified Party shall have the right to employ its or their own counsel in any such case, but the fees and expenses of such counsel shall be at the expense of the Company, and shall be advanced by the Company. Notwithstanding anything to the contrary contained herein, and provided that the Company has timely honored its obligations under Section 6, the Underwriter Indemnified Party shall not enter into any settlement without the prior written consent (which shall not be unreasonably withheld) of the terms of any settlement by the Company. The Company shall not be liable for any settlement of any action effected without its consent (which shall not be unreasonably withheld). In addition, the Company shall not, without the prior written consent of the Underwriters, settle, compromise or consent to the entry of any judgment in or otherwise seek to terminate any pending or threatened action in respect of which advancement, reimbursement, indemnification or contribution may be sought hereunder (whether or not such Underwriter Indemnified Party is a party thereto) unless such settlement, compromise, consent or termination: (i) includes an unconditional release of each Underwriter Indemnified Party, acceptable to such Underwriter Indemnified Party, from all liabilities, expenses and claims arising out of such action for which indemnification or contribution may be sought; and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of any Underwriter Indemnified 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;(c) <u>Indemnification of the Company</u>. Each Underwriter, severally and not jointly, agrees to indemnify and hold harmless the Company, its directors, the officers who signed the Registration Statement, and each other person or entity, if any, who controls the Company within the meaning of Section 15 of the Act or Section 20 of the Exchange Act, against any losses, liabilities, claims, damages and expenses described in the foregoing indemnity from the Company to the Underwriters, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions made in the Registration Statement, any preliminary prospectus, the General Disclosure Package or Prospectus or any amendment or supplement thereto or in any application, in reliance upon, and in strict conformity with, the Underwriters' Information; provided, however, that in no case shall any Underwriter be liable or responsible for any amount in excess of the underwriting discount and commissions applicable to the Offered Shares purchased by such Underwriter hereunder. In case any action shall be brought against the Company or any other person so indemnified based on the Registration Statement, any preliminary prospectus, the General Disclosure Package or Prospectus or any amendment or supplement thereto or any application, and in respect of which indemnity may be sought against any Underwriter, such Underwriter shall have the rights and duties given to the Company, and the Company and each other person so indemnified shall have the rights and duties given to the several Underwriters by the provisions of Section 6(b). The Company agrees promptly to notify the Representative of the commencement of any litigation or proceedings against the Company or any of its officers, directors or any person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, in connection with the issuance and sale of the Offered Shares or in connection with the Registration Statement, the General Disclosure Package, the Prospectus, or any Issuer Free Writing Prospectus.

&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>Contribution</u>. In order to provide for just and equitable contribution in circumstances in which the indemnification provided for in the foregoing paragraphs of this Section 6 is applicable in accordance with its terms but for any reason is held to be unavailable, the Company and the Underwriters shall contribute to the total losses, claims, liabilities, expenses and damages (including any investigative, legal and other expenses reasonably incurred in connection with, and any amount paid in settlement of, any action, suit or proceeding or any claim asserted, but after deducting any contribution received by the Company from persons other than the Underwriters, such as persons who control the Company within the meaning of the Act, officers of the Company who signed the Registration Statement and directors of the Company, who may also be liable for contribution), to which the Company and the Underwriter may be subject in such proportion as shall be appropriate to reflect the relative benefits received by the Company on the one hand and the Underwriters on the other from the offering of the Offered Shares pursuant to this Agreement. The relative benefits received by the Company and the Underwriters shall be deemed to be in the same proportion as (x) the total proceeds from the Offering (net of underwriting discount and commissions but before deducting expenses) received by the Company bears to (y) the total underwriting discount and commissions received by the Underwriters, in each case as set forth in the table on the cover page of the Prospectus. If, but only if, the allocation provided by the foregoing sentence is not permitted by applicable law, the allocation of contribution shall be made in such proportion as is appropriate to reflect not only the relative benefits referred to in the foregoing sentence but also the relative fault of the Company, on the one hand, and the Underwriters, on the other, with respect to the statements or omissions which resulted in such loss, claim, liability, expense or damage, or action in respect thereof, as well as any other relevant equitable considerations with respect to such offering. Such relative fault shall be determined by reference to whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company or the Underwriters, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such statement or omission; *provided* that the parties agree that the written information furnished to the Company through the Representative by or on behalf of the Underwriters for use in the Registration Statement, any preliminary prospectus, or the Prospectus, or in any supplement or amendment thereto, consists solely of the Underwriters' Information. The Company and the Underwriters agree that it would not be just and equitable if contributions pursuant to this Section 6(d) were to be determined by pro rata allocation or by any other method of allocation (even if the Underwriters were treated as one entity for such purpose) which does not take into account the equitable considerations referred to herein. The amount paid or payable by an indemnified party as a result of the loss, claim, liability, expense or damage, or action in respect thereof, referred to above in this Section 6(d) shall be deemed to include, for purpose of this Section 6(d), any legal or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. Notwithstanding the provisions of this Section 6(d), no Underwriter shall be required to contribute any amount in excess of the underwriting discounts and commissions received by it. No person found guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 6(d), any person who controls a party to this Agreement within the meaning of the Act will have the same rights to contribution as that party, and each officer of the Company who signed the Registration Statement will have the same rights to contribution as the Company, and each director, officer, employee, counsel or agent of an Underwriter will have the same rights to contribution as such Underwriter, subject in each case to the provisions hereof. Any party entitled to contribution, promptly after receipt of notice of commencement of any action against such party in respect of which a claim for contribution may be made under this Section 6(d), will notify any such party or parties from whom contribution may be sought, but the omission so to notify will not relieve the party or parties from whom contribution may be sought from any other obligation it or they may have under this Section 6(d). The obligations of the Underwriters to contribute pursuant to this Section 6(d) are several in proportion to the respective number of Offered Shares to be purchased by each of the Underwriters hereunder and not joint. No party will be liable for contribution with respect to any action or claim settled without its written consent (which consent will not be unreasonably withheld).

&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>Survival</u>. The indemnity and contribution agreements contained in this Section 6 and the representations and warranties of the Company contained in this Agreement shall remain operative and in full force and effect regardless of (i) any investigation made by or on behalf of any Underwriter or any controlling Person thereof, (ii) acceptance of any of the Offered Shares and payment therefor or (iii) any termination of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Termination</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>Termination</u>. The Representative shall have the right to terminate this Agreement at any time prior to the Closing Date (or, with respect to the Option Shares, on or prior to the Option Closing Date) if: (i) any domestic or international event or act or occurrence has materially disrupted, or in the Representative's opinion will in the immediate future materially disrupt, general securities markets in the United States; (ii) trading on the New York Stock Exchange or the Nasdaq Stock Market LLC shall have been suspended or materially limited, or minimum or maximum prices for trading shall have been fixed, or maximum ranges for prices for securities shall have been required by FINRA or by order of the Commission or any other government authority having jurisdiction; (iii) the United States shall have become involved in a new war or an increase in major hostilities; (iv) a banking moratorium has been declared by a New York State or federal authority; (v) a moratorium on foreign exchange trading has been declared which materially adversely impacts the United States securities markets; (vi) the Company shall have sustained a material loss by fire, flood, accident, hurricane, earthquake, theft, sabotage or other calamity or malicious act which, whether or not such loss shall have been insured, will, in the Representative's opinion, make it inadvisable to proceed with the delivery of the Firm Shares or Option Shares; (vii) the Company is in material breach of any of its representations, warranties or covenants hereunder; or (viii) the Representative shall have become aware after the date hereof of a Material Adverse Change or an adverse material change in general market conditions that would, in the Representative's reasonable judgment, make it impracticable to proceed with the offering, sale and/or delivery of the Offered Shares or to enforce contracts made by the Underwriters for the sale of the Offered 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;(b) <u>Expenses</u>. Notwithstanding anything to the contrary in this Agreement, in the event that this Agreement shall not be carried out for any reason whatsoever, within the time specified herein or any extensions thereof pursuant to the terms herein, the Company shall be obligated to pay to the Underwriters for all Accountable Out-of-Pocket Expenses contemplated under Section 4(k) herein then due and payable (including the reasonable fees and disbursements of Representative Counsel) up to $150,000, less the Advance of $25,000 already paid to the Representative. Upon demand, the Company shall pay the full amount thereof to the Representative on behalf of the Underwriters; provided, however, that such expense cap in no way limits or impairs the indemnification and contribution provisions of this Agreement. Notwithstanding the foregoing, any Advance received by the Representative will be promptly returned to the Company to the extent not actually incurred in compliance with FINRA Rule 5110(g)(4)(A).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Underwriter Default</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>Default Not Exceeding 10%</u>. If any Underwriter or Underwriters shall default in its or their obligation to purchase the Firm Shares or Option Shares, if the Option is exercised hereunder, and if the number of Firm Shares or Option Shares with respect to which such default relates (the "**Default Securities**") does not exceed in the aggregate ten percent (10%) of the number of Firm Shares or Option Shares, as the case may be, then such Default Securities shall be purchased by the non-defaulting Underwriters in proportion to their respective commitments 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;(b) <u>Default Exceeding 10%</u>. In the event that the aggregate number of Default Securities exceeds ten percent (10%) of the number of Firm Shares or Option Shares, as the case may be, the Representative may in its discretion arrange for itself or for another party or parties (including any non-defaulting Underwriter or Underwriters who so agree) to purchase the Default Securities on the terms contained herein. If, within one (1) business day after such default, the Representative does not arrange for the purchase of such Firm Shares or Option Shares, then the Company shall be entitled to a further period of one (1) business day within which to procure another party or parties satisfactory to the Representative to purchase said Firm Shares or Option Shares on such terms. In the event that neither the Representative nor the Company arrange for the purchase of the Firm Shares or Option Shares to which a default relates as provided in this Section 8, this Agreement will automatically be terminated by the Representative or the Company without liability on the part of the Company (except in each case as provided in Sections 4(k) and 6) or the Underwriters (except as provided in Section 6); provided, however, that if such default occurs with respect to the Option Shares, this Agreement will not terminate as to the Firm Shares; and provided, further, that nothing herein shall relieve a defaulting Underwriter or Underwriters of its or their liability, if any, to the other Underwriters and the Company for damages occasioned by its or their default 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;(c) <u>Postponement of Closing Date</u>. In the event that any Default Securities are to be purchased by the non-defaulting Underwriters, or are to be purchased by another party or parties as aforesaid, the Representative or the Company shall have the right to postpone the Closing Date or the Option Closing Date for a reasonable period, not to exceed five (5) business days, in order to effect whatever changes may thereby be necessary in the Registration Statement or the Prospectus or in any other documents and arrangements, and the Company agrees to file promptly any amendment or supplement to the Registration Statement or the Prospectus which, in the reasonable opinion of Underwriters' Counsel, may be necessary or advisable. The term "Underwriter" as used in this Agreement shall include any party substituted under this Section 8 with like effect as if it had originally been a party to this Agreement with respect to such Firm Shares or Option Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Miscellaneous</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>Notices</u>. Notice given pursuant to any of the provisions of this Agreement shall be in writing and shall be mailed (registered or certified mail, return receipt requested), hand delivered or sent by electronic mail transmission and confirmed and shall be effective when so delivered and confirmed or if mailed, two (2) days after such mailing.

If to the Company:

Encore Medical, Inc.

2975 Lone Oak Drive, Suite 140

Eagan, MN 55121

Attention: Chief Executive Officer

Email: <u>jmarino@encore-medical.com</u>

with a copy (which shall not constitute notice) to:

Holland & Hart LLP

555 17<sup>th</sup> Street, Suite 3200

Denver, CO 80202

Attention: Amy Bowler

Email: <u>abowler@hollandhart.com</u>

If to the Representative or any Underwriter:

The Oak Ridge Financial Services Group, Inc.

701 Xenia Avenue South, Suite 100

Golden Valley, MN 55416

Attention: Equity Capital Markets Group

Email: <u>jsullivan@oakridgefinancial.com</u>

with a copy (which shall not constitute notice) to:

Maslon LLP

225 South Sixth Street, Suite 2900

Minneapolis, MN 55402

Attention: William M. Mower

Email: <u>bill.mower@maslon.com</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;(b) <u>No Third Party Beneficiaries</u>. This Agreement has been and is made solely for the benefit of the Underwriters, the Company and, with respect to Section 6, the controlling persons, directors, officers, employees, counsel and agents referred to in Section 6 hereof, and their respective successors and assigns, and no other person shall acquire or have any right under or by virtue of this Agreement. The term "successors and assigns" as used in this Agreement shall not include a purchaser of securities from any Underwriter in his, her or its capacity as such a purchaser.

&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>Survival of Representations and Warranties</u>. All representations, warranties and agreements of the Company contained herein or in certificates or other instruments delivered pursuant hereto shall remain operative and in full force and effect regardless of any investigation made by or on behalf of the Underwriters or any of their controlling persons and shall survive delivery of and payment for the Offered Shares 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;(d) <u>Governing Law</u>. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE.

&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>Submission to Jurisdiction; Waiver of Jury Trial</u>. Each of the Company and the Representative hereby agrees that any action, proceeding or claim against it arising out of, or relating in any way to this Agreement shall be brought and enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York (the "**Specified Courts**"), and irrevocably submits to such jurisdiction, which jurisdiction shall be exclusive. Each of the Company and the Representative hereby waives any objection to such exclusive jurisdiction and that such courts represent an inconvenient forum. Any such process or summons to be served upon each of the Company and the Representative may be served by transmitting a copy thereof by registered or certified mail, return receipt requested, postage prepaid, addressed to it at the address set forth in Section 9(a) hereof. Such mailing shall be deemed personal service and shall be legal and binding upon each of the Company and the Representative, as applicable, in any action, proceeding or claim. Each of the Company and the Representative agrees that the prevailing party(ies) in any such action shall be entitled to recover from the other party(ies) all of its reasonable attorneys' fees and expenses relating to such action or proceeding and/or incurred in connection with the preparation therefor. The Company (on its behalf and, to the extent permitted by applicable law, on behalf of its stockholders and affiliates) and each of the Underwriters hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. To the extent that the Company has or hereafter may acquire any immunity (on the grounds of sovereignty or otherwise) from the jurisdiction of any court or from any legal process with respect to itself or its property, the Company irrevocably waives, to the fullest extent permitted by law, such immunity in respect of any such suit, action or proceeding.

&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>Prohibition of Press Releases and Public Announcements</u>.] For a period ending at 5:00 p.m., Eastern time, on the first (1st) Business Day following the fortieth (40th) day after the Closing Date, the Company shall not issue press releases or engage in any other publicity without the Representative's prior written consent, which consent shall not unreasonable be withheld or delayed; provided that the Representative's consent shall not be required with regard to any press release or other public disclosure that is required by law or the rules of the Exchange or any normal and customary press release issued in the ordinary course of the Company's business.

&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>Counterparts</u>. This Agreement may be signed in two or more counterparts with the same effect as if the signatures thereto and hereto were upon the same instrument.

&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>Waiver</u>. The failure of any of the parties hereto to at any time enforce any of the provisions of this Agreement shall not be deemed or construed to be a waiver of any such provision, nor to in any way effect the validity of this Agreement or any provision hereof or the right of any of the parties hereto to thereafter enforce each and every provision of this Agreement. No waiver of any breach, non-compliance or non-fulfillment of any of the provisions of this Agreement shall be effective unless set forth in a written instrument executed by the party or parties against whom or which enforcement of such waiver is sought; and no waiver of any such breach, non-compliance or non-fulfillment shall be construed or deemed to be a waiver of any other or subsequent breach, non-compliance or non-fulfillment.

&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) <u>Titles and Subtitles</u>. The titles of the sections and subsections of this Agreement are for convenience and reference only and are not to be considered in construing 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;(j) <u>Entire Agreement</u>. This Agreement embodies the entire agreement and understanding between the parties hereto and supersedes all prior agreements and understandings relating to the subject matter hereof. Notwithstanding anything to the contrary set forth herein, it is understood and agreed by the parties hereto that all other terms and conditions of that certain engagement letter between the Company and the Representative, dated April 3, 2025, shall 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;(k) <u>Amendment.</u> This Agreement may not be amended or otherwise modified or any provision hereof waived except by an instrument in writing signed by the parties hereto.

[Signature page follows]

If the foregoing correctly sets forth the understanding between the Company and the Underwriters, please so indicate in the space provided below for that purpose, whereupon this letter shall constitute a binding agreement among us.

---

| | |
|:---|:---|
| Very truly yours, | Very truly yours, |
| ENCORE MEDICAL, INC. | ENCORE MEDICAL, INC. |
| By: |  |
| Name: | Joseph A. Marino |
| Title: | Chief Executive Officer |

---

Accepted as of the date first written above, on behalf of itself and as Representative of the Underwriters named on <u>Schedule A</u> hereto:

---

| | |
|:---|:---|
| THE OAK RIDGE FINANCIAL SERVICES GROUP, INC. | THE OAK RIDGE FINANCIAL SERVICES GROUP, INC. |
| By: |  |
| Name: | Joseph Sullivan |
| Title: | Managing Director |

---

[Signature Page to Underwriting Agreement]

**SCHEDULE A**

---

| | | |
|:---|:---|:---|
| **Name of Underwriter** | **Number of Firm <br> Shares To Be <br> Purchased** | **Number of Option <br> Shares To Be <br> Purchased, if the <br> Option is Fully<br> Exercised** |
| **Total:** |  |  |

---

**SCHEDULE I**

ISSUER FREE WRITING PROSPECTUSES:

**SCHEDULE II**

1. The public offering price per shares shall be $[·] .

2. The Company is selling [·] shares of Common Stock.

3. The Company has granted an option to the Representative, on behalf of the Underwriters, to purchase up to an additional [·] shares of Common Stock.

**SCHEDULE III**

**EXHIBIT A**

**LOCK-UP AGREEMENT**

**EXHIBIT B**

**FORM OF PRESS RELEASE**

**EXHIBIT C**

**FORM OF UNDERWRITERS' WARRANT**

## Exhibit 3.2

**Exhibit 3.2**

**AMENDMENT TO THE**

**AMENDED AND RESTATED ARTICLES OF INCORPORATION**

**OF**

**ENCORE MEDICAL, INC.**

**November 17, 2025**

Encore Medical, Inc, a corporation organized and existing under and by virtue of the provisions of the Minnesota Business Corporation Act (the "<u>Company</u>"), hereby states and certifies as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Name of the corporation is Encore Medical, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2. The Company was formed upon the filing of Articles of Incorporation with the Minnesota Secretary of State on September 26, 2017;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3. Article II of the Company's Articles of Incorporation is hereby amended to change the registered office address of the Company to 2975 Lone Oak Drive, Suite 140, Eagan, Minnesota 55121 or such other or different place as may be established from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4. Article II of the Company's Articles of Incorporation shall hereby read, in its entirety:

**ARTICLE II**

The registered office address of the Company to 2975 Lone Oak Drive, Suite 140, Eagan, Minnesota 55121 or such other or different place as may be established from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5. Article III of the Company's Articles of Incorporation is hereby amended to increase the authorized number of Common shares of capital stock from 10,000,000 shares to 20,000,000 shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6. Article III of the Company's Articles of Incorporation shall hereafter read, in its entirety:

**ARTICLE III**

The authorized capital stock of this corporation shall be Twenty-Four Million (24,000,000) which shall be Twenty Million (20,000,000) shares of Common Stock, ($.01) par value per share, and Four Million (4,000,000) shares of Preferred Stock, par value ($.01) per share. The Preferred Stock may be issued from time to time as shares of one or more series. Subject to the provisions hereof and the limitations prescribed by law, the Board of Directors is authorized, by adopting resolutions providing for the issuance of Preferred Stock of any particular series, to establish the number of shares of Preferred Stock to be included in each such series, and to fix the designation, relative powers, preferences, rights, qualifications, limitations and restrictions thereof, including without limitation the right to create voting, dividend and liquidation preferences greater than those of Common Stock.

The foregoing Amendment to the Amended and Restated Articles of Incorporation of Encore Medical, Inc. is hereby adopted in accordance with Minnesota Statues, Chapter 302A.171 and shall be in full force and effect as of the date first above written.

Except as amended above, the remainder of the Company's Articles of lncorporation shall remain unchanged and are hereby ratified and confirmed.

*[Signature page follows]*

IN WITNESS WHEREOF, this Amendment to the Amended and Restated Articles of Incorporation has been executed by a duly authorized officer of the Company.

---

| | |
|:---|:---|
| By: | /s/ Joseph A. Marino |
|  | Joseph A. Marino, President |

---

![](tm2525595d4_ex3-2img01.jpg)

**Work Item 1602046500029**

**Original File Number 968326000036**

STATE OF MINNESOTA

OFFICE OF THE SECRETARY OF STATE

FILED

**11/25/2025 11:59 PM**

![](tm2525595d4_ex3-2img02.jpg)

Steve Simon

Secretary of State

## Exhibit 3.3

**Exhibit 3.3**

**AMENDMENT TO THE**

**AMENDED AND RESTATED ARTICLES OF INCORPORATION**

**OF**

**ENCORE MEDICAL, INC.**

**November 17, 2025**

Encore Medical, Inc, a corporation organized and existing under and by virtue of the provisions of the Minnesota Business Corporation Act (the "<u>Company</u>"), hereby states and certifies as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 Name of the corporation is Encore Medical, Inc.;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Company was formed upon the filing of Articles of Incorporation with the Minnesota Secretary of State on September 26, 2017;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Article II of the Company's Articles of Incorporation is hereby amended to change the registered office address of the Company to 2975 Lone Oak Drive, Suite 140, Eagan, Minnesota 55121 or such other or different place as may be established from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Article II of the Company's Articles of Incorporation shall hereby read, in its entirety:

**ARTICLE II**

The registered office address of the Company to 2975 Lone Oak Drive, Suite 140, Eagan, Minnesota 55121 or such other or different place as may be established from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Article III of the Company's Articles of Incorporation is hereby amended to increase the authorized number of Common shares of capital stock from 10,000,000 shares to 20,000,000 shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Article III of the Company's Articles of Incorporation shall hereafter read, in its entirety:

**ARTICLE III**

The authorized capital stock of this corporation shall be Twenty-Four Million (24,000,000) which shall be Twenty Million (20,000,000) shares of Common Stock, ($.01) par value per share, and Four Million (4,000,000) shares of Preferred Stock, par value ($.01) per share. The Preferred Stock may be issued from time to time as shares of one or more series. Subject to the provisions hereof and the limitations prescribed by law, the Board of Directors is authorized, by adopting resolutions providing for the issuance of Preferred Stock of any particular series, to establish the number of shares of Preferred Stock to be included in each such series, and to fix the designation, relative powers, preferences, rights, qualifications, limitations and restrictions thereof, including without limitation the right to create voting, dividend and liquidation preferences greater than those of Common Stock.

The foregoing Amendment to the Amended and Restated Articles of Incorporation of Encore Medical, Inc. is hereby adopted in accordance with Minnesota Statues, Chapter 302A.171 and shall be in full force and effect as of the date first above written.

Except as amended above, the remainder of the Company's Articles of Incorporation shall remain unchanged and are hereby ratified and confirmed.

*[Signature page follows]*

IN WITNESS WHEREOF, this Amendment to the Amended and Restated Articles of Incorporation has been executed by a duly authorized officer of the Company.

---

| | |
|:---|:---|
| By: | /s/ Joseph A. Marino |
|  | Joseph A. Marino, President |

---

## Exhibit 3.4

**Exhibit 3.4**

**BYLAWS**

**OF**

**ENCORE MEDICAL, INC.**

<u>ARTICLE I</u>

OFFICES AND CORPORATE SEAL

Section 1.01. <u>Registered and Other Offices</u>. The registered office of the corporation in Minnesota shall be that set forth in the Articles of lncorporation or in the most recent amendment of the Articles of lncorporation or statement of the Board of Directors filed with the Secretary of State of Minnesota changing the registered office in the manner prescribed by law. The corporation may have such other offices, within or without the State of Minnesota, as the Board of Directors shall, from time to time, determine.

Section 1.02. <u>Corporate Seal</u>. If so directed by the Board of Directors, the corporation may use a corporate seal. The failure to use such seal, however, shall not affect the validity of any documents executed on behalf of the corporation. The seal need only include the word "seal", but it may also include, at the direction of the Board, such additional wording as is permitted by law.

<u>ARTICLE II</u>

MEETINGS OF SHAREHOLDERS

Section 2.01. <u>Time and Place of Meetings</u>. Annual or special meetings of the shareholders, if any, shall be held on the date and at the time and place fixed by the Chairman or Co-Chairman of the Board of Directors, or if a Chairman of the Board of Directors has not been elected, by the President or the Chief Executive Officer in the absence of Board action, or the Board, except that a special meeting called by, or at the demand of a shareholder or shareholders, shall be held in the county where the principal executive office is located.

Section 2.02. <u>Annual Meetings</u>. Annual meetings of the shareholders shall be considered and treated as regular meetings of the shareholders under Chapter 302A of the Minnesota Statutes. No meeting shall be considered an annual meeting unless specifically designated as such in the notice of meeting or unless all the shareholders are present in person or by proxy and none of them objects to such designation. At any annual meeting of the shareholders there shall be an election of qualified successors for directors who serve for an indefinite term and whose terms have expired or are due to expire within six (6) months after the date of the meeting. Any business appropriate for action by the shareholders may be transacted at an annual meeting. To be properly brought before the meeting, business must be of a nature that is appropriate for consideration at an annual meeting and must be (i) specified in the notice of meeting (or any supplement thereto) at the direction of the Board of Directors, (ii) otherwise properly brought before the meeting by or at the direction of the Board of Directors, or (iii) otherwise properly brought before the meeting by a shareholder (as the term "shareholder" is defined in Chapter 302A of the Minnesota Statutes). In addition to any other applicable requirements, for matters to be properly brought before the annual meeting by a shareholder, the shareholder must have given timely notice thereof in writing to the Secretary of the corporation. To be timely, each such notice must be given, either by personal delivery or delivery by United States mail, postage prepaid, addressed to the Secretary of the corporation at the registered office of the corporation, not less than 45 days nor more than 75 days prior to a meeting date corresponding to the previous year's annual meeting. Risk of non-delivery shall rest on whose behalf the attempted delivery is made. Each such notice to the Secretary shall set forth as to each matter the shareholder proposes to bring before the annual meeting (i) a brief description of the business desired to be brought before the annual meeting and the reasons for conducting such business at the annual meeting, (ii) the name and address of record of the shareholders proposing such business, (iii) the class or series (if any) and number of shares of the corporation which are owned by the shareholder, (iv) any material interest of the shareholder in such business, and (v) such other information regarding such proposed business as would be required to be included in a proxy statement filed pursuant to the proxy rules of the Securities and Exchange Commission. Notwithstanding anything in these Bylaws to the contrary, no business shall be transacted at the annual meeting except in accordance with the procedures set forth in this Article; provided, however, that nothing in this Article shall be deemed to preclude discussion by any shareholder of any business properly brought before the annual meeting in accordance with these Bylaws.

Section 2.03. <u>Demand by Shareholders</u>. Annual or special meetings may be demanded by a shareholder or shareholders, pursuant to the provisions of Minnesota Statutes, Sections 302A.431, Subd. 2, and 302A.433, Subd. 2, respectively, or any successor statutes.

Section 2.04. <u>Quorum, Adjourned Meetings</u>. The holders of a majority of the voting power of the shares entitled to vote at a meeting constitute a quorum for the transaction of business; said holders may be present at the meeting either in person or by proxy. In the absence of a quorum, any meeting may be adjourned to a subsequent date, provided a notice of such adjournment is mailed to each shareholder entitled to vote at least five (5) days before such adjourned meeting. If a quorum is present, a meeting may be adjourned from time to time without notice other than announcement at such meeting. At adjourned meetings at which a quorum is present, any business may be transacted which might have been transacted at the meeting as originally noticed. If a quorum is present when a duly called or held meeting is convened, the shareholders present may continue to transact business until adjournment, even though withdrawal of shareholders originally present leaves less than the proportion or number otherwise required for a quorum.

Section 2.05. <u>Voting</u>. At each meeting of the shareholders, every shareholder having the right to vote shall be entitled to vote either in person or by proxy. Unless otherwise provided by the Articles of Incorporation or a resolution of the Board of Directors filed with the Secretary of State, each shareholder shall have one vote for each share held. Upon demand of any shareholder, the vote upon any question before the meeting shall be by ballot.

Section 2.06. <u>Closing of Books</u>. The Board of Directors may fix a time, not exceeding sixty (60) days preceding the date of any meeting of shareholders, as a record date for the determination of the shareholders entitled to notice of, and to vote at, such meeting, notwithstanding any transfer of shares on the books of the corporation after any record date so fixed. The Board of Directors may close the books of the corporation against the transfer of shares during the whole or any part of such period. If the Board of Directors fails to fix a record date for determination of the shareholders entitled to notice of, and to vote at, any meeting of shareholders, the record date shall be the twentieth (20th) day preceding the date of such meeting.

Section 2.07. <u>Notice of Meetings</u>. Notice of all meetings of shareholders shall be given to every holder of voting shares, except where the meeting is an adjourned meeting at which a quorum was present and the date, time and place of the meeting were announced at the time of adjournment. The notice shall be given at least five (5) but not more than sixty (60) days before the date of the meeting except that written notice of a meeting at which there is to be considered either (i) an agreement of merger or consolidation, (ii) a proposal to dispose of all or substantially all of the property and assets of the corporation, (iii) a proposal to dissolve the corporation, or (iv) a proposal to amend the Articles of Incorporation, shall be mailed to all shareholders, whether entitled to vote or not, at least fourteen (14) days prior thereto. Every notice of any special meeting shall state the purpose or purposes for which the meeting has been called, and the business transacted at all special meetings shall be confined to the purpose stated in the call, unless all of the shareholders are present in person or by proxy and none of them objects to consideration of a particular item of business.

Section 2.08. <u>Waiver of Notice</u>. A shareholder may waive notice of any meeting of shareholders. A waiver of notice by a shareholder entitled to notice is effective whether given before, at or after the meeting and whether given in writing, orally or by attendance.

Section 2.09. <u>Authorization Without a Meeting</u>. Any action required or permitted to be taken at a meeting of the shareholders may be taken without a meeting by written action signed by all of the shareholders entitled to vote on that action.

<u>ARTICLE III</u>

DIRECTORS

Section 3.01. <u>General Powers</u>. The Board of Directors shall have the general management and control of all business and affairs of the corporation and shall exercise all the powers that may be exercised or performed by the corporation under Minnesota law and the corporation's Articles of lncorporation and these Bylaws.

Section 3.02. <u>Number of Directors</u>. The Board of Directors of this corporation shall consist of not fewer than two (2) or more than nine (9) directors, as may be designated by the Board of Directors from time to time. If there are three (3) or more directors, then the directors shall be divided into three (3) classes, as nearly equal in number as the then total number of directors constituting the whole Board permits, with the term of office of one class expiring each year at the annual meeting of shareholders. Except as otherwise provided, each director shall be elected by the shareholders to hold office for a term of three consecutive years. Each director shall serve until his or her successor shall have been elected or until he or she shall retire, resign, die or shall have been removed as hereinafter provided.

Section 3.03. <u>Vacancies</u>. Any vacancies occurring in the Board of Directors for any reason, and any newly created directorships resulting from an increase in the number of directors, may be filled by a majority of the directors then in office. Any directors so chosen shall hold office until the next election of directors at an annual or special meeting of shareholders and until their successors shall be elected subject, however, to prior retirement, resignation, death or removal from office.

Section 3.04. <u>Quorum</u>. A majority of the directors then in office shall constitute a quorum for the transaction of business, and if at any meeting of the Board of Directors there shall be less than said quorum, a majority of those present may adjourn the meeting from time to time. If a quorum is present when a duly called or held meeting is convened, the directors present may continue to transact business until adjournment, even though withdrawal of directors originally present leaves less than the proportion or number otherwise required for a quorum.

Section 3.05. <u>Director Nominations</u>. Nominations for the election of directors may be made by the Board of Directors or a committee appointed by the Board of Directors or by any shareholders entitled to vote generally in the election of directors. Any shareholder (as the term "shareholder" is defined in Chapter 302A of the Minnesota Statutes) entitled to vote generally in the election of directors may nominate one or more persons for election as directors at the annual meeting only if written notice of such shareholder's intent to make such nomination or nominations has been given, either by personal delivery or by United States mail, postage prepaid, to the Secretary of the corporation not less than 45 days nor more than 75 days prior to a meeting date corresponding to the previous year's annual meeting. Risk of non-delivery shall rest on the person on whose behalf the attempted delivery is made. Each such notice to the Secretary shall set forth: (i) the name and address of record of the shareholder who intends to make the nomination; (ii) a representation that the shareholder is a holder of record of shares of the corporation entitled to vote at such meeting and the person or persons specified in the notice; (iii) the name, age, business and residence addresses, and principal occupation or employment of each nominee; (iv) a description of all arrangements or understandings between the shareholder and each nominee and any other person or persons (naming such person or persons) pursuant to which the nomination or nominations are to be made by the shareholder; (v) such other information regarding each nominee proposed by such shareholder as would be required to be included in a proxy statement filed pursuant to the proxy rules of the Securities and Exchange Commission; and (vi) the consent of each nominee to serve as a director of the corporation if so elected. The corporation may require any proposed nominee to furnish such other information as may reasonably be required by the corporation to determine the eligibility of such proposed nominee to serve as a director of the corporation. The presiding officer of the meeting may, if the facts warrant, determine that a nomination was not made in accordance with the foregoing procedure, and if he or she should so determine, it shall be so declared at the meeting and the defective nomination shall be disregarded.

Section 3.06. <u>Regular Meetings</u>. Regular meetings of the Board of Directors shall be held, without notice, at such time and place as shall from time to time be determined by the Board.

Section 3.07. <u>Special Meetings</u>. Special meetings of the Board of Directors may be called by the Chairman or Co-Chairman of the Board or the President or Chief Executive Officer at any time and shall be called by him or her whenever required to do so in writing by two or more members of the Board.

Section 3.08. <u>Notice of Meetings</u>. If the meeting is a regular meeting of the Board, or if the date and time of a Board meeting has been announced at a previous meeting, no notice is required. Otherwise, notice of a meeting of the Board of Directors shall be given by the Secretary, Chief Executive Officer or President who shall give at least seventy-two (72) hours' notice thereof to each director by mail, telephone, telegraph or in person. The notice need not state the purpose of the meeting.

Section 3.09. <u>Waiver of Notice</u>. Notice of any meeting of the Board of Directors may be waived by a director either before, at, or after such meeting in a writing signed by such director; provided, however, that a director, by his or her attendance and participation in any action taken at the meeting of the Board of Directors, shall be deemed to waive notice of such meeting.

Section 3.10. <u>Committees of the Board</u>. The Board of Directors may, in its discretion, by the affirmative vote of a majority of the directors, appoint committees which shall have and may exercise such powers as shall be conferred or authorized by the resolutions appointing them. A majority of any such committee, if the committee be composed of more than two members, may determine its action and fix the time and place of its meetings, unless the Board of Directors shall otherwise provide. The Board of Directors shall have power at any time to fill vacancies in, to change the membership of, or to discharge any such committee.

Section 3.11. <u>Compensation of Directors</u>. Directors who are not salaried officers of this corporation may receive any combination of a fixed sum per meeting attended, a fixed annual sum and/or such other compensation, including stock options and stock grants, as may be determined, from time to time, by resolution of the Board of Directors. All directors may receive reimbursement of expenses, if any, for attendance at meetings of the Board of Directors or any committee thereof. Nothing herein contained shall be construed to preclude any director from serving this corporation in any other capacity and receiving compensation for such other service.

Section 3.12. <u>Absent Directors</u>. A director may give advance written consent or opposition to a proposal to be acted on at a Board of Directors' meeting.

Section 3.13. <u>Authorization without a Meeting</u>. Any action required or permitted to be taken at a meeting of the Board or any committee may be taken without a meeting as authorized by law and this corporation's Articles.

Section 3.14. <u>Electronic Communications</u>. A director or committee member may participate in a meeting by any means or communication through which such person, other persons so participating, and all persons physically present at the meeting may simultaneously hear each other during the meeting. Participation in a meeting by that means constitutes presence in person at the meeting. A conference among directors or committee members by any means of communication through which such persons may simultaneously hear each other during the conference is a meeting of the Board of Directors or committee, as the case may be, if the same notice is given of the conference as would be required for a meeting, and if the number of persons participating in the conference would be sufficient to constitute a quorum at a meeting. Participation in a meeting by that means constitutes presence in person at the meeting.

<u>ARTICLE IV</u>

OFFICERS

Section 4.01. <u>Number and Offices</u>. The officers of the corporation shall consist of a Chief Executive Officer or President and a Chief Financial Officer or Treasurer, and may also consist of one or more Vice Presidents, a Secretary and any other officers the Board may designate. The Board may elect or appoint any officers it deems necessary for the operation and management of the corporation, each of whom shall have the powers, rights, duties, responsibilities and terms of office determined by the Board from time to time. Any number of offices or functions of those offices may be held or exercised by the same person.

Section 4.02. <u>Chairman of the Board</u>. The Board of Directors may also elect as an officer or officers a Chairman of the Board or two or more Co-Chairmen of the Board, who, if so elected, shall preside at all meetings of the Board of Directors and of the shareholders, shall make such reports to the Board of Directors and the shareholders as may from time to time be required, and shall have such other powers and shall perform such other duties as may be from time to time assigned to him or her by the Board of Directors. If a Chairman or Co-Chairman of the Board is not appointed, the duties and responsibilities of the Chairman of the Board set forth in this Section 4.02 shall be performed by the Chief Executive Officer.

Section 4.03. <u>Election and Term of Office</u>. The Board of Directors shall from time to time elect a Chief Executive Officer or President and a Chief Financial Officer or Treasurer and may elect one or more Vice Presidents, a Secretary and any other officers or agents the Board deems necessary. Such officers shall hold their offices until their successors are elected.

Section 4.04. <u>Removal and Vacancies</u>. Any officer may be removed from office at any time by a majority of the whole Board of Directors, with or without cause. Such removal, however, shall be without prejudice to the contract rights of the person so removed. If there is a vacancy among the officers of the corporation by reason of death, resignation or otherwise, such vacancy may be filled for the unexpired term by the Board of Directors.

Section 4.05. <u>Delegation of Authority</u>. An officer elected or appointed by the Board may delegate some or all of the duties or powers of such office to other persons, provided that such delegation is in writing.

<u>ARTICLE V</u>

SHARES AND THEIR TRANSFER

Section 5.01. <u>Certificates for Shares</u>. Every shareholder of this corporation shall be entitled to a certificate, to be in such form as prescribed by law and adopted by the Board of Directors, certifying the number of shares of the corporation owned by such shareholder. The certificates shall be numbered in the order in which they are issued and shall be signed by the Chairman, Chief Executive Officer, President or Chief Financial Officer. If a Secretary has been elected, the certificates may also be signed by the Secretary. Every certificate surrendered to the corporation for exchange or transfer shall be canceled and no new certificate or certificates shall be issued in exchange for any existing certificate until such existing certificate has been so canceled.

Section 5.02. <u>Issuance of Shares</u>. The Board of Directors is authorized to cause to be issued shares of the corporation up to the full amount authorized by the Articles of Incorporation in such amounts as may be determined by the Board of Directors and as may be permitted by applicable law. Shares shall be allotted only in exchange for consideration in such forms as may be permitted by applicable law. At the time of any such allotment of shares, the Board of Directors making such allotment shall state, by resolution, their determination of the fair value of the corporation in monetary terms of any consideration other than cash for which shares are allotted. The amount of consideration to be received in cash or otherwise shall not be less than the par value of the shares so allotted.

Section 5.03. <u>Transfer of Shares</u>. Transfer of shares on the books of the corporation may be authorized by the shareholder named in the certificate or the shareholder's legal representative and upon surrender of the certificate or certificates for such shares. The corporation may treat as the absolute owner of the shares of the corporation the person or persons in whose name or names the shares are registered on the books of the corporation. In the event that a bank, trust company or other similarly qualified corporation is designated and agrees to act as the registrar and/or transfer agent for the corporation, then the signatures of the officers specified above and any seal of the corporation may be imprinted upon the stock certificates by facsimile and said certificates may be authenticated by signature of an authorized agent of said registrar and/or transfer agent. The officers of the corporation may delegate to such transfer agent and/or registrar such of the duties relating to the recording and maintenance of records relating to shares of stock and shareholders of the corporation as may be deemed expedient and convenient and as are assumed by said registrar and/or transfer agent.

Section 5.04. <u>Lost Certificates</u>. A new share certificate may be issued in place of one that is alleged to have been lost, stolen or destroyed, but only in accordance with applicable law and such other reasonable requirements imposed by the Board of Directors.

<u>ARTICLE VI</u>

DISTRIBUTIONS

Section 6.01. <u>Distributions</u>. Subject to the provisions of the Article of Incorporation, the Board of Directors may cause the corporation to make distributions pursuant to the provisions of the Minnesota Statutes, Section 302A.551.

Section 6.02. <u>Record Date</u>. Subject to any provisions of the Articles of Incorporation, the Board of Directors may fix a date preceding the date fixed for the payment of any distribution or allotment of other rights as the record date for the determination of the shareholders entitled to receive payment of such distribution or allotment of such rights; and in such case only shareholders of record on the date so fixed shall be entitled to receive such payment or allotment notwithstanding any transfer of shares on the books of the corporation after such record date. The Board of Directors may close the books of the corporation against the transfer of shares during the whole or any part of such period.

<u>ARTICLE VII</u>

BOOKS AND RECORDS; FISCAL YEAR

Section 7.01. <u>Books and Records</u>. The Board of Directors of the corporation shall cause to be kept in such place as it may designate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a share register, giving the names and addresses of the shareholders, the number and classes of shares
held by each, and the dates on which the certificates therefor were issued;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) records of all proceedings of shareholders and directors;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) such other records and books of account as shall be necessary
and appropriate to the conduct of corporate business; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Bylaws of the corporation and all amendments thereto.

Section 7.02. <u>Fiscal Year</u>. The fiscal year of the corporation shall be determined by resolution of the Board of Directors.

<u>ARTICLE VIII</u>

INDEMNIFICATION

Any person who at any time shall serve or shall have served as director, officer or employee of the corporation, or of any other enterprise at the request of the corporation, and the heirs, executors and administrators of such person shall be indemnified by the corporation, in accordance with and to the fullest extent permitted by Minnesota Statutes Section 302A.521 and any successor statute or any amendment thereto.

<u>ARTICLE IX</u>

AMENDMENTS

Section 9.01. <u>General Amendment</u>. These Bylaws may be altered, amended or repealed or new Bylaws enacted by the affirmative vote of a majority of the entire Board of Directors or at any annual meeting of the shareholders (or at any special meeting thereof duly called for that purpose) by the affirmative vote of a majority of the shares represented and entitled to vote at such meeting (if notice of the proposed alteration or amendment is contained in the notice of such meeting).

The undersigned Secretary hereby certifies that the foregoing Bylaws were adopted as the complete Bylaws of the corporation by the Board of Directors of said corporation on the 1st day of December, 2017.

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| |
|:---|
| /s/ Michael P. Corcoran |
| Michael P. Corcoran, Secretary |

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## Exhibit 10.1

**Exhibit 10.1**

**CONTRACT SALES AND MANUFACTURING AGREEMENT**

THIS CONTRACT SALES AND MANUFACTURING AGREEMENT ("Agreement") is made effective November 15, 2024 by and between CARDIA, INC., a corporation duly organized and existing under the laws of Florida, U.S.A. ("Cardia"), and ENCORE MEDICAL, INC., a corporation duly organized and existing under the laws of Minnesota, U.S.A. ("Encore").

WHEREAS; both parties are in the business of manufacturing and/or marketing Class III Medical Devices and must maintain facilities and necessary required regulatory approvals, licenses and other requirements to engage in such business;

WHEREAS; Encore was originally an integral part of Cardia and was spun off as a dividend to its shareholders on September 30, 2020 with Cardia maintaining ownership of its LAA product assets and Encore owning the PFO and ASD product assets;

WHEREAS; the intent of both parties is to continue to pursue, perfect and maintain a complete separation of the companies and their respective product lines;

WHEREAS; both parties acknowledge it will take additional time to perfect a complete and perfect separation as desired due to the nature of the business of manufacturing and marketing Class III Medical Devices, in particular, the complexities and constraints of managing and conveying the necessary regulatory approvals, licenses, manufacturing certifications, and honoring existing account supply contracts;

WHEREAS; Cardia received European authorization to transfer, and subsequently transferred, all manufacturing regulatory approvals and authority to manufacture all of the products to Encore on November 15, 2024;

WHEREAS; Cardia has certain supply contracts in its name for ASD products (owned by Encore) to which it is obligated to fulfill until expiration, and Encore has certain supply contracts in its name for LAA product (owned by Cardia) to which it is obligated to fulfill until expiration;

WHEREAS; both parties agree that it is in the best interest of both parties to reasonably cooperate and continue to meet the obligations of these supply contracts until their final expiration without causing a default thereof;

The parties, intending to be legally bound, hereby covenant and agree as follows:

**Section 1. <u>Sales.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A) Encore
 hereby authorizes Cardia to continue to sell and service its ASD and associated products
 to meet the obligations of the existing hospital and distributor supply agreements currently
 in Cardia's name through the natural expiration of such agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B) Cardia
 hereby authorizes Encore to continue to sell and service its LAA and associated products
 to meet the obligations of the existing hospital and distributor supply agreements currently
 in Encore's name, through the natural expiration of such agreements.

**Section 2. <u>Manufacturing.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A) Encore
 agrees to continue to manufacture the LAA, ASD and delivery system products in quantities
 as may be required from time to time by Cardia to meet its obligations, including the supply
 agreements indicated in Section 1.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B) As
 the newly and appropriately registered and approved manufacturer of the products, Encore
 agrees to continue to maintain all required standards including FDA good manufacturing practices, ISO
 certification, CE certification, insurances, FDA audits, EPA audits, general facility standards,
 sterilization certification, packaging and shelf life approvals, and all other appropriate
 qualifications as are required for the manufacture of class III medical devices and to manufacture
 the products in accordance with such standards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C) Encore
 further agrees, subject to the terms and conditions of this Agreement, to maintain the above-mentioned
 certifications until such time as Cardia is able to recreate suitable manufacturing facilities
 and reestablish all such certifications in its own name for its LAA product, or until such
 other time as the parties may deem appropriate.

**Section 3. <u>Payment.</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A) In
 the event that Cardia sells ASD products for Encore, Cardia shall be entitled to a $400 fee
 per each ASD (with delivery system) unit sold, and Encore shall be entitled to the remaining
 funds equal to the net sales price paid per unit minus Cardia's $400 fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B) In
 the event that Encore sells LAA products for Cardia, Encore shall be entitled to a $400 fee
 per each LAA (with delivery system) unit sold, and Cardia shall be entitled to the remaining
 funds equal to the net sales price paid per unit minus Encore's $400 fee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C) The
 above amount shall be paid by invoice on a monthly basis or such other appropriate method
 as may otherwise be agreed to by both parties.

**Section 4. <u>Independent Status</u>.** Nothing contained in this Agreement or otherwise shall create the relationship of joint venture, franchisor and franchisee, principal and agent, licensor and licensee, or master and servant between the parties. Neither party, nor any affiliate, director, officer, manager, agent or employee of each, shall be, or shall be considered to be, an agent, employee, sales or other legal representative of the other for any purpose.

**Section 5. <u>Limitation of Damages</u>.** UNDER NO CIRCUMSTANCES SHALL EITHER PARTY BE SUBJECT TO ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, INDIRECT OR CONTINGENT DAMAGES OF THE OTHER PARTY.

**Section 6. <u>Trademarks and Patents.</u>** Both parties acknowledge that neither has or will acquire any right, title or license to the intellectual property rights of the other, except to the limited extent necessary to perform its responsibilities under this Agreement.

**Section 7. <u>Confidential Information</u>.** Neither party shall disclose, misappropriate or distribute in any manner any confidential or proprietary information of the other party that it acquires, develops, learns, hears of, receives or obtains orally, in writing or electronic form ("Confidential Information"). Confidential Information shall include, but not be limited to, manufacturing information, training and know how, sales results and reports, pricing information, marketing plans, research and development plans, customer data or information and any future plans of Company. Neither party shall use any Confidential Information of the other except to the extent necessary to further the relationship of the parties and perform its obligations under the Agreement. Obligations under this Section 7 shall survive the termination or expiration of the Agreement for whatever reason.

**Section 8. <u>Protection of Proprietary Rights</u>.** Each party agrees to cooperate with and assist the other in the protection of trademarks, patents, copyrights, confidential information and other intellectual property owned or licensed by the other party and shall inform the other party immediately of any infringement, unauthorized use, violation or other improper action with respect to such trademarks, patents, copyrights, confidential information or other intellectual property that shall come to its attention.

**Section 9. <u>Term.</u>** Unless earlier terminated in accordance with Section 10 below, the term of this Agreement shall commence as of November 15, 2024 and continue until December 31, 2025 or such earlier date as may be applicable. (the "Term") This Agreement may be extended or renewed for subsequent terms, provide that such extensions or renewals shall be by mutual agreement of both parties and must be reflected in writing.

**Section 10. <u>Early Termination</u>.** This Agreement may be terminated in its entirety prior to the expiration of the Term of this Agreement as provided in Section 9 above (i) by either party, in its sole discretion, with or without cause, upon at least thirty (30) days' prior written notice to the other party in which event this Agreement shall terminate upon the effective date stated in such notice; and (ii) by either party, in the event that the other party should fail to perform any of its material obligations under this Agreement and such party should fail to remedy such failure (if capable of remedy) within thirty (30) calendar days after receiving written demand to remedy such failure.

**Section 11. <u>No Indemnification or Fee Upon Expiration or Termination</u>.** It is the express intent and agreement of the parties that neither shall be liable to the other for any damages, indemnification, loss, costs, fees, claims, assessments, charges or otherwise by reason of the termination or expiration of the Agreement (collectively, "Charges"). The parties each hereby waive the right to any Charges that may otherwise be afforded or available under applicable law. The parties have each considered the possibility of loss and damage associated with the expiration or termination of this Agreement in making expenditures pursuant to the performance of the Agreement and represent and agree that the agreements contained in this Section 11 provided a material inducement for the transactions contemplated hereby. Notwithstanding the foregoing, each party shall indemnify and hold the other party harmless from any claim, damage, injury, loss, expense, liability, action or cause of action that arises out of or is due to either party's gross negligence or intentional misconduct.

**Section 12. <u>Entire Agreement and Modifications.</u>** This Agreement represents the entire agreement between the parties on the subject matter hereof and supersedes all prior discussions, agreements and understandings of every kind and nature between them. No modification of this Agreement will be effective unless in writing and signed by both parties.

**Section 13. <u>Assignment.</u>** Neither party may assign or otherwise transfer this Agreement or any of its rights or obligations without the other party's prior approval. Notwithstanding the foregoing, either party may assign this Agreement or any of its rights or obligations, upon notice to and without the consent of the other party, to any unaffiliated company or entity pursuant to a sale, merger or other consolidation of its business.

**Section 14. <u>Applicable Law.</u>** This Agreement shall be construed and enforced in accordance with the laws of the State of Minnesota, U.S.A., without reference to choice of law principles. THE RIGHTS AND OBLIGATIONS OF THE PARTIES IN CONNECTION WITH THIS AGREEMENT AND ANY SALE OR PURCHASE OF THE MATERIALS HEREUNDER SHALL NOT BE GOVERNED BY THE PROVISIONS OF THE 1980 U.N. CONVENTION ON CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS. Any and all disputes of whatever nature, arising between the parties to this Agreement which are not resolved between the parties themselves, shall be heard and resolved in the state and federal courts located in the state of Minnesota, U.S.A., and the parties hereby consent to the jurisdiction of such courts and waive any argument that venue in such courts is inconvenient.

**Section 15. <u>Notice.</u>** Any notice required to be given pursuant to this agreement shall be in writing and delivered personally to the other party at the below stated address or mailed by overnight delivery by a nationally recognized courier service (with evidence of delivery) or by registered mail or by facsimile or email. Any such notice shall be effective upon receipt by the addressee:

---

| | |
|:---|:---|
| **To: Encore Medical, Inc.** | **To: Cardia, Inc.** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Attention: Peter Buonomo | Attention: Joseph A. Marino |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Encore Medical, Inc. | Cardia, Inc. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2975 Lone Oak Drive | 2957 Lone Oak Drive |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Eagan, MN 55121 | Eagan, MN 55121 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E-mail: pbuonomo@encore-medical.com | E-mail: jmarino@cardia.com |

---

**Section 16. <u>Waiver.</u>** The parties agree that the failure of either party at any time to require performance by the other party of any of the provisions herein shall not operate as a waiver to request strict performance of the same or like provisions, or any other provisions hereof, at a later time.

**Section 17. <u>Language.</u>** The English language version of this Agreement shall govern and control any translations of the Agreement into any other language.

**IN WITNESS WHEREOF,** Company and Purchaser have caused this instrument to be executed by their duly authorized representatives, as of the day and year first above written.

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| | | | |
|:---|:---|:---|:---|
| **Cardia, Inc.** | **Cardia, Inc.** | **Encore Medical, Inc.** | **Encore Medical, Inc.** |
| ("Cardia") | ("Cardia") | ("Encore") | ("Encore") |
| Signature: | /s/ Joseph A Marino | Signature: | /s/ Peter Buonomo |
| Name: | Joseph A Marino | Name: | Peter Buonomo |
| Title: | President | Title: | Sr. Vice President |
| Date: | 7/25/2025 | Date: | 7/25/2025 |

---

<u>Addendum</u>

Term Renewals:

1) The parties hereby agree to extend this agreement, as provided for in Section 9. TERM, through December 31, 2028.

---

| | | | |
|:---|:---|:---|:---|
| Cardia, Inc. | Cardia, Inc. | Encore Medical, Inc. | Encore Medical, Inc. |
| Signature: | /s/ Joseph A. Marino | Signature: | /s/ Peter Buonomo |
| Name: | Joseph A. Marino | Name: | Peter Buonomo |
| Title: | President & CEO | Title: | Sr. Vice President |
| Date: | December 12, 2025 | Date: | December 12, 2025 |

---

## Exhibit 10.2

**Exhibit 10.2**

**COMMERCIAL LEASE**

**(Waters Business Center VI – Eagan, MN)**

This Commercial Lease ("Lease") is effective this 3rd day of February 2023 ("Effective Date"), and is by and between The Waters HM LLC, a Minnesota limited liability company ("Landlord"), and Encore Medical, Inc., a Minnesota corporation ("Tenant"). Landlord and Tenant are sometimes referred to herein individually as a "Party," and collectively as the "Parties." In consideration of their mutual promises and covenants and other good and valuable consideration, the adequacy and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>PREMISES</u>. Landlord agrees to lease to Tenant and Tenant agrees to lease from Landlord, Suite 140, containing approximately 7,459 rentable square feet of which approximately 6,230 square feet is office space, and approximately 1,229 square feet is warehouse and manufacturing space (collectively the "Premises"), together with rights in common with other tenants to the Common Areas (as hereinafter defined), within the building known as Waters Business Center VI ("Building") which is situated on that certain land ("Land") in the City of Eagan, Minnesota, which is legally described on Exhibit A-1 attached hereto with an address of 2975 Lone Oak Drive, Eagan, Minnesota (the Building and the Land are collectively the "Property"), and which are part of the 6-building project commonly known as Waters Business Center (the "Project"). The Premises are depicted on Exhibit A-2, attached hereto, and the Property is depicted on Exhibit B, attached hereto.

The "Common Areas" are defined as all areas and facilities outside the Premises and within the exterior boundary line of the Land which are provided and designated by Landlord from time to time for the general non-exclusive use of Landlord, Tenant, and other tenants of the Building and their respective employees, suppliers, shippers, customers and invitees. The Common Areas shall include, without limitation, (i) all interior common mechanical rooms, utility rooms, restrooms, vestibules, stairways, or corridors within the Building not intended to exclusively serve one or more tenants, and (ii) the parking areas, loading and unloading areas, trash areas, roadways, sidewalks, walkways, parkways and landscaped areas that are situated upon the Land, subject to changes made, from time to time, by Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>CONDITION OF PREMISES</u>. Except as otherwise expressly set forth in Section 21 herein, Tenant agrees to accept the Premises "as-is."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>TERM</u>. The term of this Lease (the "Term") shall commence on the later of April 1, 2023, or the date that Landlord delivers possession of the Premises to Tenant with Landlord's Work (as hereafter defined) Substantially Complete (which later date shall be defined herein as the "Commencement Date"), and continue for a period of seventy-four (74) months thereafter, or, in the event that the Commencement Date does not occur on the first day of a calendar month, the Term shall expire at 11:59 p.m. on the last day of the sixty-second (62nd) month after the month in which the Commencement Date occurs. Upon the expiration of the Term, the Lease shall expire without further action on the part of either Party hereto. "Substantially Complete" shall mean the point at which (i) a temporary certificate of occupancy has been issued, and (ii) Landlord's Work is complete to the degree that any items remaining to be completed or corrected do not materially interfere with Tenant's ability to take occupancy of, and conduct its business within, the Premises. Upon notice from Landlord that the Premises are Substantially Complete, the Parties shall inspect the Premises and prepare a punchlist of items necessary to finally complete the portions of the Premises for which Landlord is responsible. Landlord agrees to cause to be completed or corrected all such punchlist items promptly after the same have been identified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>HOLDING OVER</u>. If Tenant shall retain possession of the Premises after termination or expiration of this Lease, then for each day, or part thereof the Tenant so retains possession of the Premises, Tenant shall pay Landlord one hundred fifty percent (150%) of the amount of the daily rate of Base Rent payable by Tenant under Section 5 during the calendar month immediately preceding such termination or expiration, together with any damages (excluding punitive damages) sustained by Landlord as a result of Tenant's holding over. If such retention is without the express written consent of Landlord, such tenancy shall be a "tenancy at will." Except as provided in this Section 4, any such holdover tenancy shall be upon the same terms and conditions as contained in this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>RENT</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>Base Rent</u>. Tenant covenants and agrees to pay to Landlord or its authorized agent, at Landlord's address, without prior demand and without deduction or set-off, rent ("Base Rent") for the Premises as follows:

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| | | |
|:---|:---|:---|
| Full Calendar Months | Annual Base Rent | Monthly Installments of Base |
|  | (per square foot) | Rent |
| 1-2 | $14.38 | $0.00 |
| 3-12 | $14.38 | $8938.37 |
| 13-24 | $14.81 | $9205.65 |
| 25-36 | $15.25 | $9479.15 |
| 37-48 | $15.71 | $9765.07 |
| 49-60 | $16.18 | $10057.22 |
| 61-72 | $16.67 | $10361.79 |
| 73-74 | $17.17 | $10672.59 |

---

Tenant shall also pay Additional Rent as provided in Section 5(b), and any other additional payments due under this Lease. All such payments of Base Rent and Additional Rent shall be made in monthly installments, payable in advance on or before the first day of each calendar month, with the first payment of Additional Rent due on the Commencement Date and the first installment of Base Rent due on the first day of the third month of the Term, as the first two (2) months of the Term are Base Rent free. Base Rent and Additional Rent (collectively, "Rent") for any partial month at the beginning or end of the Term of this Lease shall be prorated based upon the actual number of days of such month included within the Term of this Lease. All payments of Rent shall be made by Tenant by way of Automated Clearing House ("ACH") payment system, and Tenant shall enroll in ACH and provide Landlord with evidence of such enrollment before the first payment of Rent is due. Failure to maintain enrollment in ACH throughout the Term, without Landlord's written consent to accept an alternative form of payment, shall be a default under 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;(b) <u>Additional Rent</u>. Tenant shall pay, as "Additional Rent," the amount of Tenant's Share of Operating Expenses for each Lease Year, as reasonably estimated by Landlord prior to the beginning of such Lease Year, in equal monthly installments, in advance, on the first day of each month during each applicable Lease Year.

The Parties hereto agree upon the following Definitions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 term "Lease Year" shall mean each twelve (12) month period which ends on December 31 of any year during which all or any part of the Term occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 term "Real Estate Taxes" means any general real property tax, improvement tax, assessment, special assessment, reassessment, commercial rental tax, tax in lieu tax, levy, charge, penalty or similar imposition imposed by any authority having the direct or indirect power to tax on the Property, including without limitation (a) any city, county, state or federal entity, (b) any school, agricultural, lighting, drainage or other improvement or special assessment district, (c) any governmental agency (including metropolitan districts), and (d) any private entity having the authority to assess the Property under any encumbrances on the Land. The term "Real Estate Taxes" includes, without limitation, all charges or burdens of every kind and nature Landlord incurs in connection with using, occupying, owning, operating, leasing or possessing the Property, without particularizing by any known name and whether any of the foregoing are general, special, ordinary, extraordinary, foreseen or unforeseen; any tax or charge for fire protection, street lighting, streets, sidewalks, road maintenance, refuse, sewer, water or other services provided to the Property. The term "Real Estate Taxes" does not include Landlord's state or federal income, franchise, estate or inheritance taxes. If Landlord is entitled to pay, and elects to pay, any of the above listed assessments or charges in installments over a period of two or more calendar years, then only such installments of the assessments or charges (including interest thereon) as are actually paid in a calendar year will be included within the term "Real Estate Taxes" for such calendar year.

Tenant also shall pay, as Additional Rent, any tax or excise on rents, gross receipts tax, or other tax, however described, which is levied or assessed by any governmental entity, against Landlord in respect to the Rent, Additional Rent, or other charges reserved under this Lease or as a result of Landlord's receipt of such rents or other charges accruing under this Lease, except income, franchise, gift, succession, foreign ownership, foreign control, transfer, sales, inheritance, estate, payroll or personal property taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 term "Operating Expenses" shall mean and include all expenses incurred with respect to the maintenance and operation of the Property, including, but not limited to, Real Estate Taxes, public liability, casualty and other insurance premiums incurred by Landlord for insurance required to be maintained hereunder, Common Area maintenance and repair costs, steam, electricity, water, sewer, gas, and other Common Area utility charges, fuel, lighting, window washing, janitorial services, trash and rubbish removal, snow removal, lawn mowing and maintenance, repair and replacement of exterior windows, repair and replacement of the non-structural portions of the roof and roof membrane, wages and benefits payable to employees of Landlord whose duties are directly connected with the operation, maintenance and management of the Property, and to the extent such employee's time is directly charged to working at the Property, amounts paid to contractors or subcontractors for work or services performed in connection with the operation and maintenance of the Property, all services, supplies, repairs, replacements or other expenses for maintaining and operating the Property, reasonable attorneys' fees and costs in connection with the appeal or contest of Real Estate Taxes or levies, and such other expenses as may be ordinarily incurred in the operation, maintenance and management of the Property and not specifically set forth herein. With respect to repairs or replacements to the Property which would be recognized as capital improvements under generally accepted accounting principles ("GAAP"), the term "Operating Expenses" shall only include a pro-rata portion of the cost of such repairs or replacements determined by amortizing such costs at prevailing interest rates over the useful life of the repair or replacement as determined in accordance with GAAP.

The term "Operating Expenses" shall not include repairs, restoration or other work occasioned by fire, windstorm or other insured casualty (other than any deductible amount), expenses incurred in leasing or procuring tenants, leasing commissions, advertising expenses, expenses for renovating space for Landlord or new tenants, payments made to affiliates of Landlord including inside or related contractors and executives (but only to the extent the amount paid exceeds market rate for the services provided), legal expenses incident to enforcement by Landlord of the terms of any lease, interest or principal payments on any mortgage, depreciation allowances or expenses, costs to cure construction defects in work performed by or at the request of Landlord to the extent recovered under warranty, costs to remedy building code violations or other violations of applicable laws, codes, ordinances or regulations existing as of the Commencement Date, costs to remediate Hazardous Substances (as hereinafter defined) which are not due to the acts or omissions of Tenant, costs for the maintenance, repair and replacement of those items identified as "Excluded Items" in Section 7(a) hereof, rent under any ground lease or underlying lease, or any costs incurred by Landlord in connection with the transfer or disposition of Landlord's interest in the Property. Notwithstanding the foregoing, in the event Landlord installs equipment in or makes improvements or alterations to the Property which are required under any governmental laws, regulations, or ordinances which were not required as of the date of this Lease, Landlord shall include in Operating Expenses reasonable charges for the same so as to amortize such investment at prevailing interest rates over the useful life of such equipment, improvement or alteration, as determined in accordance with GAAP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 term "Tenant's Share of Operating Expenses" shall mean sixteen and four-tenth's percent (16.4%) of the Operating Expenses for the applicable Lease Year. The above percentage has been calculated based upon the number of rentable square feet in the Premises compared to the number of rentable square feet in the Building.

As to each Lease Year after the initial Lease Year, Landlord shall reasonably estimate for each such Lease Year the total amount of (i) each category of Operating Expenses; (ii) Tenant's Share of Operating Expenses; and (iii) the computation of the annual and monthly Additional Rent payable during such Lease Year as a result of changes in Tenant's Share of Operating Expenses. Landlord shall make the itemized estimate in writing and deliver or mail it to Tenant at its address for notice purposes hereunder.

From time to time during any applicable Lease Year, Landlord may re-estimate the amount of Operating Expenses and Tenant's Share thereof, and in such event Landlord shall notify Tenant, in writing, of the specific nature, amount and basis of such re-estimate in the manner above set forth and fix monthly installments for the then remaining balance of such Lease Year in an amount sufficient to pay the re-estimated amount over the balance of such Lease Year after giving credit for payments made by Tenant on the previous estimate.

Upon completion of each Lease Year, Landlord shall determine the actual amount of Operating Expenses for such Lease Year and Tenant's Share thereof and deliver an itemized written report of the amounts thereof to Tenant within one hundred twenty (120) days after the end of each Lease Year. If Tenant has paid less than its Share of Operating Expenses for any Lease Year, Tenant shall pay the balance of Tenant's Share within thirty (30) days after the receipt of such statement. If Tenant has paid more than Tenant's Share of Operating Expenses for any Lease Year, Landlord shall credit such excess against the most current installment or installments due Landlord for its estimate of Tenant's Share of Operating Expenses for the next following Lease Year. A pro rata adjustment shall be made for any fractional Lease Year occurring during the Term of this Lease or any renewal or extension thereof based upon the number of days of the term of this Lease during such Lease Year as compared to three hundred sixty-five (365) days. If an overpayment occurs during the last Lease Year, Landlord shall refund the amount overpaid to Tenant. Failure of Landlord to provide the written report described herein within one hundred twenty (120) days after the end of each Lease Year shall not preclude Landlord from later preparing such report and reconciling Tenant's Share of Operating Expenses accordingly.

Tenant shall have the right within ninety (90) days following Tenant's receipt of Landlord's written report of the previous Lease Year's Operating Expenses, to inspect Landlord's accounting records relating to Operating Expense charges (for the immediately preceding Lease Year only) at Landlord's accounting office. If such inspection shows that Tenant has paid less than its Share of Operating Expenses for any Lease Year, Tenant shall pay the balance of Tenant's Share within thirty (30) days after the receipt of such inspection results. If Tenant has paid more than Tenant's Share of Operating Expenses for any Lease Year, Landlord shall credit such excess against the most current installment or installments due Landlord for its estimate of Tenant's Share of Operating Expenses for the next following Lease Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>USE</u>. Subject to any limitations imposed by applicable laws, rules and regulations, the Premises may be used and occupied solely for general office and warehouse purposes, and for medical device manufacturing. Tenant will not use the Premises in a manner contrary to law, or in any manner that may increase the insurance risk, prevent the obtaining of insurance, or be in violation of any applicable federal, state or local law, rule or regulation. Tenant shall be solely responsible, at its expense, for obtaining all permits, certifications, and other approvals required by applicable law for its operations (collectively, "Required Approvals").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>MAINTENANCE AND REPAIR</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>Landlord's Obligations for Maintenance</u>. Landlord shall keep and maintain the Common Areas, the foundation, exterior walls, and roof (structural and roof membrane) of the Building in which the Premises are located, the structural portions of the Premises (exclusive of doors, door frames, door checks, windows, and exclusive of window frames located in the exterior building walls), and building systems that do not exclusively serve Tenant or any other single tenant, in good condition and repair (including replacements, as necessary) except that Landlord shall not be called upon to make such repairs occasioned by the act or negligence of Tenant, its agents, employees, invitees, licensees or contractors. Except to the extent the same are Tenant's obligation under Section 7(b) below, or as otherwise provided elsewhere in this Lease, Landlord shall maintain the Property in compliance with applicable law and the requirements of applicable insurance underwriters. Except as otherwise provided below in this Section 7(a), the costs incurred by Landlord in the performance of the obligations set forth in this Section 7(a) shall be included as Operating Expenses. Costs to maintain, repair and replace the foundation, exterior walls (other than painting or other cosmetic treatments), structural portions of the roof, and structural portions of the Premises (collectively, the "Excluded Items") shall not be included in Operating Expenses, but shall be the sole cost of Landlord, except to the extent that such maintenance, repairs, or replacements are occasioned by the act or negligence of Tenant, its agents, employees, invitees, licensees, or contractors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Tenant's Obligations for Maintenance</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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Except as provided in Section 7(a), Tenant shall repair (including replacement of parts and equipment if necessary) the Premises and every part thereof, including, without limitation, all plumbing and sewage facilities, fixtures, electrical systems, sprinkler system, walls, floors, ceilings, together with any other Improvements (as hereinafter defined) included within and exclusively serving the Premises, provided that such maintenance and/or repairs are not due to manufacturer defects or improper construction or installation of any of the aforementioned items which occur during any relevant warranty period. Tenant shall also be responsible to repair other parts of the Property to the extent such repairs are made necessary by the act or negligence of Tenant, its agents, employees, invitees, licensees or contractors. Landlord shall be responsible for improvements to the Premises of a capital nature (including the replacement of the heating and air conditioning system, and those required by changes in law coming into effect after the Commencement Date which are not specific to Tenant's use), provided that the cost of any such capital improvements shall be amortized at prevailing interest rates over the useful life of such improvements (as determined in accordance with GAAP) and Tenant shall pay to Landlord Tenant's Share of the amortized portion of such costs attributable to the Term of the Lease as part of Operating Expenses.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Tenant shall keep and maintain the Premises in a clean, sanitary and safe condition in accordance with the laws of the State of Minnesota and in accordance with all directions, rules and regulations of the health officer, fire marshal, building inspector, or other proper officials of the governmental agencies having jurisdiction, at the sole cost and expense of Tenant, and Tenant shall comply with all requirements of law, ordinance and otherwise, affecting the Premises including, but not limited to, the Americans With Disabilities Act. If Tenant refuses or neglects to commence and to promptly and adequately complete any repairs which are the obligation of Tenant pursuant to this Section 7(b), Landlord may, but shall not be required, to make or complete such repairs and Tenant shall pay the cost thereof to Landlord within twenty (20) days after the receipt of written notice from Landlord including a statement for such cost..

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) Tenant, at its own expense, shall install and maintain fire extinguishers and other fire protection devices (in addition to the ESFR sprinkler system described to be provided by Landlord) as may be required from time to time by any agency having jurisdiction thereof and the insurance underwriters insuring the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>UTILITIES AND SERVICES</u>. Tenant shall timely pay the cost (including related taxes and charges) of all utility services (including without limitation water, gas, propane, diesel, electricity, sewer, waste, security, telecomunications and data) used on or provided to the Premises and that portion, which is the same portion as Tenant's Share of Operating Expenses, of the utility services used on or provided to the Common Areas. Tenant shall pay either directly or, at Landlord's option, as a part of Tenant's Share of Operating Expenses, all charges for any utility or service used, rendered or supplied upon or in connection with the Premises. Notwithstanding the foregoing, Tenant may select its own telecommunications or data service and will pay the cost therefor, and Landlord will not be responsible for providing any such service connections to the Building. Landlord shall not be liable for damages or otherwise, and Tenant shall no right of demand, offset, abatement or deduction, if any utility provider's service to the Premises is interuppted or impaired by weather, fire, accident, riot, strike, force majeure, the making of necessary repairs or improvements, or any other causes beyond the reasonable control of Landlord. If any public authorities require a reduction in energy consumption in the use or operation of the Building or Project, Tenant agrees to conform to such requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>ADDITIONAL COVENANTS</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>Signs</u>. Tenant shall have the right to install signage on the Building and monument signage at the entrance to the Property at its own cost in accordance with the Sign Criteria which is attached hereto as Exhibit C, and with all applicable governmental restrictions. The size and location of any exterior signage shall be subject to Landlord's prior written consent, which shall not be unreasonably withheld. Landlord, at Landlord's cost, will provide front and back door vinyl graphics for the Premises' suite-number. During the last nine (9) months of the Term, Landlord may place "For Lease/Sale" signs upon the Premises.

&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>Compliance with Laws</u>. Except as otherwise provided in this Lease, Tenant agrees, at Tenant's expense, to comply with all laws, orders, ordinances, and regulations and with any direction made pursuant to law of any public officer, relating to Tenant's use of the Premises. Tenant shall not use or occupy or permit the use or occupancy of the Property in any manner that would be a violation of federal, state or local law or regulation, regardless of whether such use or occupancy is lawful under any conflicting law, including, without limitation, any law relating to the use, sale, possession, cultivation, manufacture, distribution or marketing of any controlled substances or other contraband or any law relating to the medicinal or recreational use or distribution of marijuana.

&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>Surrender</u>. Tenant agrees upon the termination of this Lease for any reason, to remove (i) Tenant's personal property and trade fixtures and those of any other persons claiming under Tenant, and (ii) any Improvements required to be removed in accordance with Section 14 below, and to quit and deliver up the Premises to Landlord peaceably and quietly in as good order and condition as the same are at the commencement of this Lease or thereafter may be improved by Landlord and Tenant, reasonable use and wear and damage due to fire or other casualty excepted. Tenant, at Tenant's cost, shall repair any damage resulting from Tenant's removal of personal property, trade fixtures and any Improvements from the Premises.

&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>Personal Property Taxes</u>. Tenant agrees to pay, before delinquency, any and all taxes levied or assessed and which become payable during the Term hereof upon Tenant's equipment, fixtures, furniture, and other personal property located on the Premises.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>ENVIRONMENTAL RESTRICTIONS</u>. Tenant covenants and agrees that during the Term of this Lease (i) no Hazardous Substances (as hereinafter defined) shall be located, stored, used, disposed of, released or discharged by Tenant from (including groundwater contamination) the Premises, provided that the Tenant may store, use and dispose of (in compliance with this Section 10) normal cleaning or office materials and materials used in Tenant's manufacturing of medical devices; (ii) Tenant's use and operation of the Premises shall at all times and in all respects comply with all federal, state and local laws, ordinances and regulations relating to the protection of health and with all Environmental Laws (as hereinafter defined); (iii) Tenant will obtain all permits, if any, required under Environmental Laws relating to Tenant's use and occupancy of the Premises; and (iv) in no event shall Tenant use or store chlorinated solvents in the Premises.

&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) For purposes of this section, the term "Hazardous Substances" shall mean the following: (i) any "hazardous substance" as now defined pursuant to the Comprehensive Environmental Response, Compensation and Liability Act ("CERCLA"), 42 U.S.C.A. § 960 1(14) as amended by the Superfund Amendments and Reauthorization Act ("SARA"), and including the judicial interpretation thereof (ii) any "pollutant or contaminant" as now defined in 42 U.S.C.A. § 960 1(33); (iii) any petroleum, including crude oil or any fraction thereof; (iv) natural gas, natural gas liquids, liquefied natural gas, or synthetic gas usable for fuel; (v) any "hazardous chemical" as now defined pursuant to 29 C.F.R. part 1910; and (vi) any other substance subject to regulation as a hazardous or toxic substance under existing Environmental 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;(b) For purposes of this section, the term "Environmental Laws" shall mean and include all federal, state and local statutes, ordinances, regulations and rules presently in force or hereafter enacted relating to environmental quality, contamination and clean-up, including, without limitation, CERCLA, 42 U.S.C.A. § 9601 et seq., as amended by the SARA, the Resource Conservation and Recovery Act of 1976, 42 U.S.C.A. § 6901 et seq., as amended by the Hazardous and Solid Waste Amendments of 1984, and any applicable state super lien and environmental clean-up statutes and all rules and regulations presently or hereafter promulgated under said statutes, as amended.

Tenant shall indemnify, defend (with counsel reasonably acceptable to Landlord), protect and hold Landlord and each of Landlord's officers, directors, partners, employees, agents, attorneys, successors and assigns free and harmless from and against any and all claims, liabilities, damages, costs, penalties, forfeitures, losses or expenses (including reasonable attorneys' fees) for death or injury to any person or damage to any property whatsoever (including water tables and atmosphere) arising or resulting, directly or indirectly, from the release or discharge of Hazardous Substances, in, on, under, upon or from the Premises or the Improvements located thereon, or from the transportation or disposal of Hazardous Substances to or from the Premises in each case to the extent caused by Tenant. Tenant's obligations hereunder shall include, without limitation, and whether foreseeable or unforeseeable, all costs of any legally required repairs, clean-up or detoxification or decontamination of the Premises or the Improvements, and the presence and implementation of any closure, remedial action or other legally required plans in connection therewith. For purposes of the indemnity provided herein, any acts or omissions of Tenant, or its employees, agents, customers, sublessees, assignees, contractors or sub-contractors of Tenant (whether or not they are negligent, intentional, willful or unlawful) shall be strictly attributable to Tenant.

Landlord represents and warrants that the Property is in compliance with applicable Environmental Laws as of the Commencement Date, and agrees to indemnify, defend and hold harmless Tenant from and against all damages (excluding consequential, punitive, incidental, special and similar type damages), costs, losses, and expenses (including reasonable attorneys' fees) to the extent resulting from the existence of any Hazardous Substances at the Property as of the Commencement Date or otherwise discovered during the Term of the Lease; provided that such indemnification obligation shall not extend to any damages resulting from the actions of Tenant or those over whom Tenant is deemed to have control.

The foregoing covenants and obligations set forth in this Section 10 shall survive the termination or expiration of this Lease or Tenant's right to possession of the Premises hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>INSURANCE</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>Tenant's Liability Insurance</u>. Tenant agrees to carry, at its expense, during the entire term hereof, a policy of commercial general liability and property damage insurance in an amount of not less than $2,000,000.00 per occurrence ($4,000,000.00 aggregate), with respect to the Premises, and the business operated by Tenant in the Premises.

&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>Tenant's Property Insurance</u>. Tenant agrees to carry, at its expense, during the entire Term hereof, a policy of extended property insurance (which is currently commonly called "causes of loss - special form" and formerly called "all risk") against fire, vandalism, malicious mischief, and such other perils as are from time to time included in a standard extended coverage endorsement insuring any Improvements constructed by Tenant, Tenant's merchandise, trade fixtures, furnishings, equipment and all other items of personal property of Tenant located on the Premises on a replacement value basis.

&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>Requirements of Tenant's Insurance</u>. All policies of insurance to be carried by Tenant under this Lease shall (i) be in the amounts stated above, subject to adjustment from time to time as reasonably required by Landlord or Landlord's lender; (ii) as to liability insurance only, name Landlord and Landlord's property manager as additional insureds; and (iii) be in form and substance reasonably satisfactory to Landlord. Such insurance may be furnished by Tenant under any blanket policy carried by it or under a separate policy therefor. The insurance shall be with an insurance company authorized to do business in the State of Minnesota and a copy of the policies evidencing such insurance or certificates of insurers certifying to the issuance of such policies shall be delivered to Landlord prior to the Commencement Date and upon renewals not less than 30 days prior to expiration of such coverage. Such policies shall also provide that no act or default of any person other than Landlord or its agents shall render the policy void as to Landlord or effect Landlord's right to recover thereon.

&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>Landlord's Liability Insurance</u>. Landlord agrees to carry during the entire Term hereof, a policy of commercial general liability and property damage insurance in an amount of not less than $3,000,000.00 per occurrence ($3,000,000.00 aggregate), with respect to the Property.

&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>Landlord's Property Insurance</u>. Landlord agrees to carry during the entire Term hereof, a policy of extended property insurance (which is currently commonly called "causes of loss - special form" and formerly called "all risk") against fire, vandalism, malicious mischief, and such other perils as are from time to time included in a standard extended coverage endorsement insuring the Building and Landlord's Work on a replacement value basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>WAIVER OF SUBROGATION</u>. Notwithstanding anything in this Lease to the contrary, neither Landlord nor Tenant shall be liable to the other for loss arising out of damage or destruction of the Premises, the Building, the Property, or other Improvement, or personal property or contents therein, or from a loss of rents that may be abated as a consequence of such damage, if such damage or destruction is caused by a peril included within a standard form of fire insurance policy, with full extended coverage endorsement added, as from time to time issued in Minnesota, whether or not such policy, is in fact, in effect. Such absence of liability shall exist whether or not the damage or destruction is caused by the negligence of Landlord or Tenant, or their respective officers, employees, agents or customers. It is the intention and agreement of Landlord and Tenant that each Party shall look to its insurer for reimbursement of any such loss, and the insurer involved shall have no subrogation rights against the other Party. Each Party shall advise its insurance company of this release and such policy shall, if necessary, contain a waiver of any right of subrogation by the insurer against the other Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>INDEMNIFICATION</u>. Subject to the foregoing provisions of Section 12, Tenant shall defend and indemnify Landlord and hold it harmless from and against any and all liability, damages, costs, or expenses, including attorneys' fees, arising from any act, omission or negligence of Tenant or its officers, contractors, licensees, agents, servants, employees or invitees in or about the Premises or Building, or arising from any default by Tenant under this Lease. Landlord shall not be liable for any loss or damage to person or property sustained by Tenant, which may be caused by the Premises, or appurtenances thereto, being out of repair or by theft, or by vandalism, or by any other cause of whatsoever nature except to the extent caused by the gross negligence or intentional act of Landlord, or the failure of Landlord to perform its obligations under the terms of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>IMPROVEMENTS AND ALTERATIONS</u>. Tenant may not make alterations or improvements ("Improvements") to the Premises, except for non-structural Improvements costing less than $15,000.00 per project, without the prior written consent of Landlord, which consent shall not be unreasonably withheld. Improvements shall be made at Tenant's sole cost and any contractor must first be approved by Landlord, which approval shall not be unreasonably withheld. Tenant shall obtain all necessary permits and provide Landlord with copies. Tenant shall promptly repair any damage and perform any necessary cleanup resulting from any Improvements. All Improvements (except trade fixtures, furniture and equipment belonging to Tenant which are removable without causing damage to the Premises) shall be Landlord's property and shall remain upon the Premises upon the expiration or other termination of this Lease, all without compensation to Tenant. Landlord may elect, however, such election to be expressed in writing to Tenant at the time Tenant requests Landlord's consent to make a particular Improvement, to require Tenant to remove at Tenant's expense such Improvement upon the expiration or other termination of this Lease and restore the Premises to the condition existing before the construction of such Improvement. All Improvements made by Tenant shall comply with all applicable laws, codes, and ordinances. Tenant agrees not to create, incur, impose, or permit any lien against the Premises or Landlord by reason of any Improvement and Tenant agrees to hold Landlord harmless from and against any such lien claim. At its expense, Tenant shall cause to be discharged, within fifteen (15) days of the filing thereof, any construction lien claim filed against the Premises for work claimed to have been done for, or materials claimed to have been furnished to, or on behalf of Tenant. Tenant may contest any such lien in a manner prescribed by law after posting security for the benefit of Landlord in an amount reasonably determined by Landlord, but in no event not less than 150% of the amount claimed by such lien, or by posting security with a Court of competent jurisdiction in connection with an Order that releases the Premises from the lien.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>CONDEMNATION</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) If the Property shall be taken or condemned for any public purpose, or purchased under threat of such taking, to such an extent as to render the Premises untenantable, this Lease shall forthwith cease and terminate as of the date title vests in the condemning authority or the date the condemning authority takes possession, whichever shall occur first. Further, Landlord may terminate this Lease in the event that such taking makes the operation of the Property after such taking commercially impractical, in Landlord's reasonable judgment, whether or not such taking directly affects the Premises.

&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 the event this Lease is not terminated as contemplated by subparagraph (a) above, Landlord shall promptly restore the Property to substantially the same condition as the Property was in as of the Commencement Date (with the exception of those portions of the Property taken), and after restoration, Rent shall be proportionately adjusted to reflect any diminution in the square footage of the Premises.

&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) In any taking of the Property, or any portion thereof, whether or not this Lease is terminated as provided in this article, Tenant shall not be entitled to any portion of the award for the taking of the Property or damage to Landlord's Work, with the exception that Tenant may apply for a separate award for Tenant's relocation expenses, and the taking of Tenant's furniture, fixtures or equipment, or personal property, or any other amount that does not reduce the amount otherwise payable to Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>ASSIGNMENT AND SUBLETTING</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) Tenant shall not voluntarily, involuntarily or by operation of law assign, transfer, mortgage or encumber this Lease, nor sublet the whole or any part of the Premises without first obtaining Landlord's written consent, which consent shall not be unreasonably withheld.

&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) Notwithstanding the foregoing, Tenant may, without the prior consent of Landlord but with not less than fifteen (15) days' prior written notice to Landlord (such notice to include the proposed assignee's financial statement), at any time assign or otherwise transfer this Lease in its entirety to any parent, subsidiary or affiliate corporation or entity, or any corporation resulting from the consolidation or merger of Tenant into or with any other entity, or to any person, firm, entity or corporation acquiring a majority of Tenant's issued and outstanding capital stock or substantially all of Tenant's physical assets; provided that in each instance described above, the assignee or transferee has a financial strenghth (as reasonably determined by Landlord based on its review of the financial statement of the proposed assignee or transferee) equal to or greater than the financial strength of Tenant as of the Commencement Date or immediately prior to such assignment or transfer, whichever is greater. As used herein, the expression "affiliate corporation or entity" means a person or business entity, corporate or otherwise, that directly or indirectly through one or more intermediaries, controls or is controlled by, or is under common control with, Tenant. The word "control" means the right and power to direct or cause the direction of the management and policies of a person or business entity, corporate or otherwise, through ownership or voting securities by contract; provided, however, that in the event of such an assignment, the use of the Premises shall remain substantially the same and the assignee shall assume in writing the terms and conditions set forth herein to be observed and performed by Tenant and agree to attorn to Landlord in the performance of such assumed obligations. Landlord shall be designated as an intended third party beneficiary of such assumption and attornment covenants or otherwise be in privity of contract with respect thereto.

&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) No assignment or subletting, even if approved, shall release Tenant from primary responsibility for the full and timely performance of all of Tenant's obligations under 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;(d) Landlord shall be entitled to receive fifty percent (50%) of any profit or increased Rent received by Tenant in connection with any assignment or subletting, after deduction therefrom for Tenant's documented costs incurred in such assignment or subletting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>DEFAULTS AND REMEDIES</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>Defaults by Tenant and Landlord's Remedies</u>. If (i) On the first two (2) occurrences of such failure during the Term hereof, Tenant fails to pay when due any installlment of Rent or other charges due hereunder and such failure continues for five (5) days after Landlord gives Tenant written notice of such failure, or thereafter, Tenant fails to pay when due any installment of Rent or other charges due hereunder and such failure continues for five (5) days after it is due without Landlord being required to provide any such notice; or (ii) Tenant fails to perform any other covenant, term, agreement or condition of this Lease, and such failure continues for twenty (20) days after written notice from Landlord (provided, however, that if the nature of such default other than for nonpayment is such that the same cannot reasonably be cured within such twenty (20) day period, Tenant shall not be deemed in default if Tenant shall commence such cure within said twenty (20) day period and thereafter diligently prosecute the same to completion, but in no event shall any such cure period, as extended, exceed a total of forty-five (45) days beyond the dated of Landlord's notice without Landlord's prior written consent to a cure period greater than forty-five (45) days, (iii) there is a levy imposed by a judgment creditor of Tenant upon, under writ of execution or the attachment by legal process by such creditor of, the leasehold interest of Tenant, or the creation of a lien by a creditor of Tenant with respect to such leasehold interest, and such levy, lien, writ or attachment is not removed or released within ninety (90) days after its attachment or occurrence, (iv) Tenant abandons the Premises or fails to take possession of the Premises when available for occupancy, whether or not Tenant continues to pay Rent due under this Lease, (v) Tenant becomes bankrupt or admits in writing its inability to pay its debts as they mature, or makes an assignment for the benefit of creditors, or consents to the appointment of a trustee or receiver for Tenant or for the major part of its property, (vi) Tenant fails to maintain its ACH payment system for the payment of Rent without Landlord's written consent to accept an alternative form of payment, (vii) Tenant fails to maintain any Required Approvals; provided however, Tenant shall have twenty (20) days after notice of failure to maintain any Required Approvals to cure such default; or (viii) a trustee or receiver is appointed for Tenant or for the major part of its property, or any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding, or other proceeding for relief under any bankruptcy law, or similar law for the relief of debtors, is instituted by Tenant, or against Tenant and is allowed against it, or is consented to by it or is not dismissed within sixty (60) days after such appointment or institution (each of the foregoing, an "Event of Default"), then, in any such case, Landlord, in addition to all other rights and remedies available to Landlord at law or equity or by other provisions hereof, may commence an eviction action in accordance with the laws of the State of Minnesota and, at Landlord's option, terminate this Lease or terminate Tenant's right to possession of the Premises only, without terminating the Lease. Tenant further agrees that in case of any such termination or recovery of possession without terminating this Lease, Landlord may pursue any and all remedies available at law or in equity for Tenant's default, and Tenant agrees to pay to Landlord upon demand all damages resulting from such termination including, but not limited to, (a) all Rent owing as of the date of such default, (b) all Rent which would have been payable for the balance of the Term, had Tenant not defaulted on its obligations under the Lease, (c) all costs incurred by Landlord in recovering the Premises and the preparation of the Premises for re-leasing, including reasonable brokerage and attorneys' fees incurred, and repairs and improvements to the Premises, and (d) all other damages suffered by Landlord as a result of Tenant's default.

&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>Right of Landlord to Cure Tenant Defaults</u>. If Tenant shall default in the observance or performance of any term or covenant of this Lease, or if Tenant shall fail to pay any sum of money, other than Rent required to be paid by Tenant hereunder, Landlord may, but shall not be obligated to, and without waiving or releasing Tenant from any obligation to make any such payment or perform any such other act on Tenant's part to be made or performed as provided in this Lease, remedy such default for the account and at the expense of Tenant, immediately and without notice in case of emergency, or in any other case after notice and expiration of any applicable cure period. If Landlord makes any expenditures or incurs any obligations for the payment of money in connection with Tenant's default including, but not limited to, attorneys' fees, Tenant shall pay to Landlord as Additional Rent such sums paid or obligations incurred, with costs and interest at the rate of twelve percent (12%) per year or the maximum rate permitted by law, whichever is lower. Tenant shall pay such Additional Rent within twenty (20) days after the receipt of written notice from Landlord including a statement for such Additional Rent. In any event, Landlord shall have (in addition to any other right or remedy of Landlord) the same rights and remedies in the event of the nonpayment of sums due under this section as in the case of default by Tenant in the payment of Rent.

&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>Unpaid Sums</u>. Any amounts owing from Tenant to Landlord, or from Landlord to Tenant, under this Lease shall bear interest at the highest rate permitted by law in the State of Minnesota, not to exceed the annual rate of twelve percent (12%) calculated from the date due until the date of payment. In addition to the foregoing remedies, if any payment of Rent is not paid within five (5) days of the date due, Tenant shall (without the necessity of notice from Landlord) pay a late charge equal to five percent (5%) of the amount of such overdue payment per month or proportion thereof as liquidated damages for Landlord's extra expense in handling such past due account.

&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>Landlord Defaults and Tenant Remedies</u>. Landlord shall be deemed to be in default hereunder if Landlord fails to perform any covenant, term, agreement or condition of this Lease, and such failure continues for thirty (30) days after written notice from Tenant (provided, however, that if the nature of such default is such that the same cannot reasonably be cured within such 30-day period, Landlord shall not be deemed in default if Landlord shall commence such cure within said 30-day period and thereafter diligently prosecute the same to completion). If Landlord shall default as provided herein, or in the case of an emergency, Tenant may, but shall not be obligated to, and without waiving or releasing Landlord from any obligation to perform any such act on Landlord's part to be made or performed as provided in this Lease, remedy such default for the account and at the expense of Landlord, immediately and without notice in case of emergency, or in any other case after notice and expiration of any applicable cure period. If Tenant makes any expenditures or incurs any obligations for the payment of money in connection with Landlord's default including, but not limited to, attorneys' fees, Landlord shall pay to Tenant such sums paid or obligations incurred, with costs and interest at the rate of twelve percent (12%) per year or the maximum rate permitted by law, whichever is lower. In no event shall Tenant be entitled to any offset or deduction to the payment of Rent when due.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>SALE OR MORTGAGE OF LANDLORD'S INTEREST</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>Conveyance of Landlord's Interest</u>. Landlord may sell, assign or otherwise transfer, in whole or in part, its interest in this Lease and the Property. Landlord shall require the transferee to assume the obligations of Landlord under this Lease arising from and after the date of transfer. The transfer shall release Landlord from any further liability to Tenant hereunder for acts occurring after the transfer and assumption by such transferee and, after any such transfer and assumption by such transferee, Tenant shall look solely to the transferee for the performance of any obligations of the party who from time to time is the landlord under 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;(b) <u>Estoppel Certificate</u>. Within ten (10) business days after written request by either Party, the other Party shall execute, acknowledge and deliver to the requesting Party a statement in writing (i) certifying, to the extent true or known, that this Lease is unmodified and in full force and effect (or if modified, stating the nature of such modification and certifying, to the extent true or known, that this Lease, as so modified, is in full force and effect), the dates to which Base Rent and Additional Rent and any other charges payable by Tenant hereunder are paid in advance, if any, (ii) acknowledging that there are not, to the certifying Party's knowledge, any uncured defaults on the part of the requesting Party hereunder or specifying such defaults if any are claimed, and (iii) in case of a transfer of Landlord's interest, and Tenant's receipt of written notice from Landlord and such transferee confirming the nature and occurrence of such transfer and requesting Tenant's attornment, attorning to the transferee, provided the transferee acknowledges Tenant's rights under this Lease. Landlord and Tenant hereby acknowledge that prospective purchasers and encumbrancers of the Premises, Tenant's business, or of the Property, may incur obligations or extend credit in reliance upon such estoppel certificate. If the certifying Party fails to deliver such statement to the requesting Party within said ten (10) business day period, the requesting Party shall give the certifying Party an additional written notice of such request. If such statement in not received by the requesting Party within two (2) business days after such additional request, such failure shall conclusively evidence the representation and agreement that: this Lease is in full force and effect, without modification, except as the requesting Party may represent; there are no uncured defaults in the requesting Party's performance hereunder; and Tenant has not paid more than one month's Rent in advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>SUBORDINATION</u>. This Lease, and the term and estate hereby granted, and all of the rights of Tenant hereunder, are subject and subordinate to any underlying leases and the liens of any mortgage or mortgages now or hereafter in force against the Premises or the building in which the Premises are located or the land on which it sits, as well as to any and all zoning laws, ordinances and regulations, conditions and agreements affecting said real estate at any time, and Tenant shall execute such further commercially reasonable instruments confirming such subordination of this Lease to the lien or liens of any such lease or mortgage as shall be requested by Landlord; provided, however, that this subordination and any such further instruments shall not, so long as Tenant is not in default in the performance of any of the terms, covenants and conditions of this Lease, terminate or modify this Lease or any of the rights of Tenant hereunder. Landlord, Landlord's current lender and Tenant shall enter into a Subordination, Attornment and Nondisturbance Agreement on Landlord's current lender's standard form promptly after execution of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>QUIET ENJOYMENT</u>. Landlord covenants that if Tenant shall pay the rent and observe and perform all the terms, covenants and conditions of this Lease on its part to be observed and performed, Tenant shall peaceably and quietly enjoy possession of the Premises and all of its other rights hereunder, subject to the terms and conditions of this Lease.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>BUILDING IMPROVEMENTS/TENANT EQUIPMENT/WARRANTY</u>. Landlord shall cause to be performed those certain improvements to the Property described and depicted on Exhibit D attached hereto ("Landlord's Work"). Landlord's Work will be constructed with Substantial Completion and, correspondingly, the Commencement Date, anticipated to be on or about April 1, 2023. Landlord's Work shall be based upon mutually agreeable plans and specifications to be developed by Landlord and reasonably acceptable to Tenant. Landlord's Work shall be performed by Landlord's general contractor, Greiner Construction. Tenant shall cooperate with Landlord and those engaged by Landlord to complete Landlord's Work, in the completion of plans and specifications, the scheduling of such work and the supplying of access and utility services necessary for the performance of such work. Tenant shall also cooperate with Landlord's contractor in coordinating any work to be done by Tenant's contractors or subcontractors during the period that Landlord's Work is being completed. Such coordination shall require that Tenant's work not adversely affect the schedule for Landlord's Work or result in any labor dispute.

Base Rent includes the cost to complete Landlord's Work as set forth on Exhibit D. Tenant shall be responsible for any increase in the cost of Landlord's Work resulting from changes to Landlord's Work requested in writing by Tenant and documented in change orders signed by Landlord and Tenant (collectively, "Excess Costs"). Tenant shall pay all Excess Costs to Landlord in full on or before the Commencement Date.

Landlord represents and warrants that as of the Commencement Date, the Premises, including Landlord's Work will be in compliance with all applicable codes and regulations, inclusive of the provisions of the Americans with Disabilities Act of 1992, as amended. Tenant shall have the benefit of any labor and material warranties given by Landlord's contractors, and, in addition, Landlord hereby warrants to Tenant that Landlord's Work shall be free from defective materials and workmanship for a period of one (1) year from the date of Tenant's occupancy of the Premises.

Landlord shall provide Tenant with access to the Premises upon Substantial Completion of Landlord's Work solely for the purpose of Tenant's setup, provided that such early access does not cause a labor dispute, interfere with Landlord's Work, or damage Landlord's property. Tenant's early access shall be subject to the terms of this Lease, with the exception that Tenant shall have no obligation to pay Rent during such early access period. Landlord shall thoroughly clean the Premises prior to Tenant's move-in, other than for debris or other cleaning resulting from Tenant's activities in the Premises prior to the Commencement Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>SECURITY DEPOSIT</u>. Upon the execution of this Lease, Tenant shall deposit with Landlord the sum of Eleven Thousand Forty Five and 53/100 Dollars ($11,045.53) as security for the performance of Tenant's obligations under this Lease (the "Security Deposit"). Landlord may (but shall have no obligation to) use the Security Deposit or any portion thereof to cure any Event of Default under this Lease or to compensate Landlord for any damage Landlord incurs as a result of Tenant's failure to perform any of Tenant's obligations hereunder. If there are no payments to be made from the Security Deposit as set out in this paragraph, or if there is any balance of the Security Deposit remaining after all payments have been made, the Security Deposit, or such balance thereof remaining, will be refunded to the Tenant within thirty (30) days after fulfillment by Tenant of all obligations hereunder (including payment of the balance of any year-end reconciliation of Operating Costs and Taxes). Should any portion of the deposit be appropriated and applied by Landlord in accordance with this section, Tenant shall, upon demand by Landlord, immediately replenish said deposit to its original amount, and Tenant's failure to do so within ten (10) days after Landlord's demand shall constitute an immediate default under this Lease, without the requirement of additional notice or further opportunity to cure. Upon sale or conveyance of the Property, Landlord shall transfer or assign the Security Deposit to any new owner of the Property, and upon such transfer, and the written assumption of such new owner of Landlord's obligations thereafter arising under this Lease, including, but not limited to, those relating to the Security Deposit, all liability of Landlord for the Security Deposit shall terminate. Landlord may commingle the Security Deposit with Landlord's general and other funds. Landlord shall not be required to pay interest on the Security Deposit to Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>BROKER/COMMISSIONS</u>. Tenant and Landlord hereby acknowledge that they have dealt with no brokers other than Eric Batiza of JLL ("Landlord's Broker") and Evan Molde of Colliers International ("Tenant's Broker"). Landlord shall be responsible for commissions due to Landlord's Broker and Tenant's Broker pursuant to separate agreements. Landlord and Tenant agree to indemnify, defend, and hold each other harmless from any other claims by any other broker or agent arising out of the respective actions of Landlord or Tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;24. <u>DAMAGE OR DESTRUCTION</u>. If the Property is damaged or destroyed by fire or other casualty ("Casualty") to the extent of fifty percent (50%) or more of the Property's value at the time, then Landlord, by giving written notice to Tenant within thirty (30) days after the Casualty, may terminate this Lease; provided, however, if such Casualty occurs within the last year of the Term hereof, such termination right shall be mutual. If less than fifty percent (50%) of the Property's value is so damaged or destroyed by Casualty (or if neither Landlord nor Tenant elects to terminate in the event of damage of 50% or more), Landlord shall promptly commence and diligently pursue restoration of the damaged areas (other than those areas Tenant is required by this Lease to insure) to substantially the same condition that existed immediately prior to the Casualty. If the same cannot likely be restored within two hundred ten (210) days after the Casualty, as reasonably determined by Landlord, then either Landlord or Tenant, by giving written notice to the other within thirty (30) days after the Casualty, may terminate this Lease. Any Lease termination under this section shall be effective ten (10) days after such notice is given, except that if the Casualty has materially disrupted or prevented Tenant's use of the Premises as of or about the date of said Casualty, the termination shall be effective as of the date of said Casualty. In no event shall Tenant be entitled to any part of any of Landlord's insurance proceeds resulting from the Casualty. Rent shall be proportionately abated during any period of restoration based on the area of the Premises that Tenant is unable to occupy during said restoration. If there occurs a Casualty during the last nine (9) months of the Term, such that Landlord otherwise would be required under the terms of this Lease to restore the Premises, either Landlord or Tenant shall have the option to terminate this Lease by written notice to the other within thirty (30) days of the date of such Casualty if it is not reasonable to expect that Landlord will complete the restoration of the Premises on or before sixty (60) days prior to the end of the Term.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;25. <u>FINANCIAL STATEMENTS</u>. Tenant agrees to deliver, if requested in writing, to Landlord, within sixty (60) days after the end of Tenant's fiscal year end, a copy of Tenant's most recently compiled financial statements. Landlord agrees that such financial statements of Tenant received by Landlord pursuant to this Lease shall be held in confidence by Landlord except that Tenant recognizes that Landlord may share this information with its (i) lenders and bankers, (ii) prospective purchasers, and (iii) those officers, directors, employees, attorneys, consultants, auditors, agents and contractors of the foregoing whose duties and obligations make such disclosure necessary or appropriate, provided that said lenders, bankers, prospective purchasers, and such other persons agree to also keep said information confidential.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;26. <u>MISCELLANEOUS PROVISIONS</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>Headings</u>. The titles to sections of this Lease are not a part of this Lease and shall have no effect upon the construction or interpretation of any part 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;(b) <u>Successors and Assigns</u>. All of the covenants, agreements, terms and conditions contained in this Lease shall inure to and be binding upon Landlord and Tenant and their respective successors and assigns.

&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>Non-waiver</u>. Waiver by Landlord or Tenant of any breach of any term, covenant or condition herein contained in any instance shall not be deemed to be a waiver of any other breach of such term, covenant, or condition 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;(d) <u>Entire Agreement</u>. This Lease contains all covenants and agreements between Landlord and Tenant relating in any manner to the Premises. No prior agreements or understandings pertaining thereto shall be valid or of any force or effect. This Lease shall not be altered, modified or amended except in writing signed by Landlord and 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;(e) <u>Severability</u>. Any provision of this Lease which shall prove to be invalid, void or illegal shall in no way affect, impair or invalidate any other provision hereof and the remaining provisions hereof shall nevertheless remain in full force and effect. If the intent of any sections of this Lease so indicate, the obligations of Landlord and Tenant pursuant to such sections of this Lease shall survive the 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;(f) <u>No Accord and Satisfaction</u>. No payment by Tenant or receipt by Landlord of a lesser amount than the Base Rent, Additional Rent and other charges stipulated herein shall be deemed to be other than on account of the earliest stipulated Base Rent, Additional Rent or other charges, nor shall any endorsement or statement on any check or any letter accompanying any check or payment as Base Rent or Additional Rent be deemed an accord and satisfaction, and Landlord shall accept such check or payment without prejudice to Landlord's right to recover the balance of such Base Rent, Additional Rent and any other charges or pursue any other remedy in 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;(g) <u>Notices</u>. Whenever in this Lease it shall be required or permitted that notice or demand be given or served by either Party to this Lease, such notice or demand shall be given or served in writing and sent to Landlord and Tenant at the addresses set forth below:

Tenant: Encore Medical, Inc. <br> Attn: <u>Mike Corcoran</u> <br> <u>2975 Lone Oak Dr., Suite 140 <br> Eagan, MN 55121</u> <br> Email: <u>mcorcoran@encore-medical.com</u>

Landlord: The Waters HM LLC <br> Attn.: Paul M. Hyde<br> 250 Nicollet Mall <br> Suite 920 <br> Minneapolis, MN 55402 <br> Email: paul@hyde-dev.com

All such notices shall be sent by (i) certified or registered mail, return receipt requested, and shall be effective three (3) days after the date of mailing; (ii) Federal Express or similar overnight courier and shall be effective one (1) business day after delivery to Federal Express or similar overnight courier; and (iii) personal service, and shall be effective on the same day as service. Any such address may be changed from time to time by either Party serving notices as provided above.

&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>Parking</u>. Tenant, at no additional cost, will have the nonexclusive right to park on the Property's striped surface parking lot shown on Exhibit B attached hereto.

&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) <u>Access</u>. Tenant shall have access to the Premises and the Property's surface parking lot 24 hours per day, 7 days per week.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Recording of Lease</u>. Tenant shall not record 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;(k) <u>Attorneys' Fees</u>. If either Party institutes a suit against the other for violation of or to enforce any covenant, term or condition of this Lease, the prevailing Party shall be entitled to all of its costs and expenses, including, without limitation, reasonable attorneys' fees.

&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) <u>Time is of the Essence</u>. Time is of the essence as to the performance of Landlord's Work, payment of Base Rent and Additional Rent, the Security Deposit, and the performance of all other obligations of the Parties under 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;(m) <u>Counterparts; Electronic Signatures</u>. This Lease may be executed in counterparts, each of which shall be deemed to be an original, but any number of which, when taken together, shall constitute but one agreement. The exchange of executed copies of this Lease by facsimile or Portable Document Format (PDF) transmission (including any electronic signature covered by the U.S. federal ESIGN Act of 2000, Uniform Electronic Transactions Act, the Electronic Signatures and Records Act or other applicable law (e.g., www.docusign.com)), shall constitute effective execution and delivery of this Lease as to the parties for all purposes, and signatures of the parties transmitted by facsimile or PDF, including any electronic signature as aforesaid, shall be deemed to be their original signatures for all purposes. The parties agree that such delivery will have the same binding effect as delivery of the physical document bearing the handwritten signature.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) <u>Force Majeure</u>. Unless otherwise expressly provided in this Lease, a Party shall not be liable to the other Party for delays or failures in the performance of any of its obligations under this Lease because of acts of God; acts of a public enemy; acts of war, whether declared or undeclared; acts of terrorism; insurrections; riots; fires; explosions; accidents; epidemics; quarantine restrictions; acts of government; failures of transportation; freight embargoes; strikes or other labor disputes causing work to be stopped, slowed, or interrupted; provided that such delays or failures were beyond that Party's reasonable control and were not caused by its fault or negligence ("Force Majeure"). If a delay or failure of performance occurs that is excusable under this provision, as determined by the Parties, in their reasonable discretion, the period for performance shall be extended for a time equal to the time lost because of the Force Majeure event. Notwithstanding the foregoing, in no event shall a Force Majeure event excuse the full and timely payment of Rent or other amounts owing under this Lease.

***[Signature page follows]***

***<u>Signature page for Commercial Lease</u>***

Dated this 3rd day of February, 2023.

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| | |
|:---|:---|
| LANDLORD: | LANDLORD: |
| **The Waters HM LLC,** | **The Waters HM LLC,** |
| a Minnesota limited liability company | a Minnesota limited liability company |
| /s/ Paul Hyde | /s/ Paul Hyde |
| By: | Paul Hyde, President |

---

---

| | |
|:---|:---|
| TENANT: | TENANT: |
| **Encore Medical, Inc.,** | **Encore Medical, Inc.,** |
| a Minnesota corporation. | a Minnesota corporation. |
| By: | /s/ Mike Corcoran |
| Name: | Mike Corcoran |
| Its: | President & CEO |

---

**EXHIBIT A-1**

**<u>Legal Description of Land</u>**

Lot 2, Block 1, Blue Ridge Seventh Addition, City of Eagan, Dakota County, Minnesota

**EXHIBIT A-2**

**<u>Depiction of the Premises – (Shown as Suite 180)</u>**

![](tm2525595d4_ex10-2img001.jpg)

**EXHIBIT B**

**<u>Depiction of the Property</u>**

![](tm2525595d4_ex10-2img002.jpg)

**EXHIBIT C**

**<u>Sign Criteria</u>**

**1.** **GENERAL** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. An area identification sign (Ground Sign) will be provided for the site containing only the project name.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. No pylon sign will be permitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Signage on the building façade will be permitted for those tenancies located in those areas of
the buildings designed for combined office/warehouse use.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. All signage permitted on the buildings shall be of the unlighted type.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. The furnishing and installation of signs as provided for herein and costs incurred will be the responsibility
of the tenant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. It is intended that the signage for each combination office/warehouse use be uniform in design and style of lettering and although
previous and current signage practice of the tenant will be considered, it will not be the governing factor in the approval of signs to
be installed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G. Service doors at the rear of the service areas of the building may be identified with professionally applied
signs, identifying the business name and address of the tenant only. Lettering shall not be larger than 3" in height and shall be
uniformly placed at each tenant location as approved by the Owner/Landlord.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H. Tenants shall not post any signs other than those provided for herein.

**2.** **SIGN CRITERIA** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The wording of the signage provided for herein shall be limited to the tenant's business identification (name) only and shall
not include items sold or services provided. (The intent here being that of business identification and not product or service advertising.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. The use of corporate shields, logos or insignias will be permitted (subject to Landlord's approval), provided such corporate
shields, logos, or insignias shall not exceed the allowable height for sign letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Multiple or repetitive signage will be allowed only with the approval of the Landlord provided the area
of such signage conforms to the limitations set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. All signs and identifying marks shall be within the limitations of the sign fascia as set forth on the
building elevation drawings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E. Internally lighted and/or flood lighted signage will not be approved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F. Tenant's signage shall be of the same material and color as may be designated by Landlord to be
used uniformly for all tenants of the building.

**3.** **PROHIBITED TYPES OF SIGNS OR SIGN COMPONENTS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Moving or rating signs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Illuminated signs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Signs employing moving or flashing lights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Signs employing exposed raceways.

**EXHIBIT D**

**<u>Landlord's Work</u>**

![](tm2525595d4_ex10-2img003.jpg)

![](tm2525595d4_ex10-2img004.jpg)

![](tm2525595d4_ex10-2img005.jpg)

## Exhibit 10.3

**Exhibit 10.3**

**<u>FIRST AMENDMENT TO COMMERCIAL LEASE</u>**

This First Amendment to Commercial Lease (the "First Amendment") is made and entered into to be effective on 3rd, day of March, 2023, (the "Effective Date"), by and between **The Waters HM LLC**, a Minnesota limited liability company ("Landlord"), and **Encore Medical, Inc.**, a Minnesota corporation ("Tenant").

**RECITALS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. Landlord and Tenant are parties to that certain Commercial Lease dated October February 3, 2023 (the "Lease"), for that certain premises consisting of approximately 7,459 rentable square feet within the Waters Business Center IV located at 2795 Lone Oak Drive, Eagan, Minnesota, as further defined in the Lease (the "Existing Premises").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. Tenant and Landlord are entering into this First Amendment to correct a typographical error that appears in Section 3 of the Lease, subject to and on the terms and conditions set forth in this First Amendment.

**AGREEMENTS**

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained herein, Landlord and Tenant agree that the Lease is hereby amended as follows:

1. <u>Definitions</u>. Unless otherwise expressly defined herein, all capitalized terms used in this First Amendment shall have the meanings given such terms in the Lease.

2. <u>Term</u>. The first sentence of Section 3 of the Lease is hereby deleted and replaced in its entirety with the following:

The term of this Lease (the "Term") shall commence on the later of April 1, 2023, or the date that Landlord delivers possession of the Premises to Tenant with Landlord's Work (as hereinafter defined) Substantially Complete (which later date shall be defined herein as the "Commencement Date") and continue for a period of seventy-four (74) months thereafter, or, in the event that the Commencement Date does not occur on the first day of a calendar month, the Term shall expire at 11:59 p.m. on the last day of the seventy-fourth (74th) month after the month in which the Commencement Date occurs.

3. <u>Lease in Full Force and Effect</u>. Except as expressly modified by this First Amendment, all of the terms, conditions, agreements, covenants, representations, warranties and indemnities contained in the Lease remain unmodified and in full force and effect. In the event of any conflict between the terms and conditions of this First Amendment and the terms and conditions of the Lease, the terms and conditions of this First Amendment shall prevail.

4. <u>Counterparts; Electronic Signatures</u>. This First Amendment may be executed in counterparts, each of which shall constitute an original, and all of which, when taken together, shall constitute the same instrument. If any signature is delivered by facsimile transmission or by e-mail delivery of an electronic format data file (i.e. .pdf), such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf" signature page was an original thereof. The parties may sign this First Amendment, or any other document contemplated herein, electronically through DocuSign or a similar third-party electronic signature provider, whose electronic signature technology identifies and authenticates the signer and the signer's intent to sign. A copy of the signature page to this First Amendment or any other document contemplated herein bearing a handwritten signature may be delivered by facsimile transmission or by email in Portable Document Format and the parties agree that such delivery will have the same binding effect as delivery of the physical document bearing the handwritten signature.

[Remainder of Page Intentionally Blank. Signatures Follow.]

**SIGNATURE PAGE TO**

**FIRST AMENDMENT TO COMMERCIAL LEASE**

IN WITNESS WHEREOF, Landlord and Tenant have executed this First Amendment as of the day and year first written above.

---

| | | | |
|:---|:---|:---|:---|
| **LANDLORD:** | **LANDLORD:** | **TENANT:** | **TENANT:** |
| The Waters HM LLC, | The Waters HM LLC, | Encore Medical, Inc., | Encore Medical, Inc., |
| a Minnesota limited liability company | a Minnesota limited liability company | a Minnesota corporation | a Minnesota corporation |
| By: | /s/ Paul Hyde | By: | /s/ Mike Corcoran |
|  | Paul Hyde, President | Name: Mike Corcoran | Name: Mike Corcoran |
|  |  | Title: President & CEO | Title: President & CEO |

---

## Exhibit 10.4

**Exhibit 10.4**

**LOAN AGREEMENT**

between

**MERIT MEDICAL SYSTEMS, INC.**

and

**ENCORE MEDICAL, INC.**

**November 6, 2023**

**Loan Agreement**

This Loan Agreement (this **"Agreement"),** dated as of November 6, 2023, is entered into between Encore Medical, Inc., a Minnesota corporation (the **"Borrower"),** and Merit Meical Systems, Inc., a Utah corporation (the **"Lender").**

**RECITALS**

**WHEREAS,** The Borrower has requested that the Lender make a loan to the Borrower, and the Lender is willing to do so on the terms and conditions set forth herein.

**NOW, THEREFORE,** in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

**ARTICLE I** 

**DEFINITIONS AND INTERPRETATION**

**Section 1.01 Definitions.** As used in this Agreement, the following terms shall have the meanings set forth below:

**"Affiliate"** as to any Person, means any other Person that, directly or indirectly through one or more intermediaries, is in control of, is controlled by, or is under common control with, such Person. For purposes of this definition, "control" of a Person means the power, directly or indirectly, either to (a) vote 10% or more of the securities having ordinary voting power for the election of directors (or persons performing similar functions) of such Person or (b) direct or cause the direction of the management and policies of such Person, whether by contract or otherwise.

**"Anti-terrorism Law"** means any Requirement of Law related to money laundering or financing terrorism including the PATRIOT Act, The Currency and Foreign Transactions Reporting Act (31 U.S.C. §§ 5311-5330 and 12 U.S.C. §§ 1818(s), 1820(b), and 1951-1959) (also known as the **"Bank Secrecy Act"),** the Trading With the Enemy Act (50 U.S.C. § 1 et seq.), and Executive Order 13224 (effective September 24, 2001).

**"Asset Sale"** means any Disposition of Property or series of related Dispositions of Property (excluding any such Disposition permitted by Section 6.05).

**"Bankruptcy Code"** means Title 11 of the United States Code, as amended from time to time, or any similar federal or state law for the relief of debtors.

**"Blocked Person"** means any Person that (a) is publicly identified on the most current list of "Specially Designated Nationals and Blocked Persons" published by the Office of Foreign Assets Control of the US Department of the Treasury **("OFAC")** or resides, is organized or chartered, or has a place of business in a country or territory subject to OFAC sanctions or embargo programs or (b) is publicly identified as prohibited from doing business with the United States under the International Emergency Economic Powers Act, the Trading With the Enemy Act, or any other Requirement of Law.

**"Business Day"** means a day other than a Saturday, Sunday, or other day on which commercial banks in Salt Lake City are authorized or required by law to close.

**"Capital Lease Obligations"** with respect to any Person, means the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as capital leases under GAAP on the balance sheet of such Person and the amount of such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

**"Cash Equivalents"** as to any Person, means (a) securities issued or directly and fully guaranteed or insured by the United States or any agency or instrumentality thereof (provided that the full faith and credit of the United States is pledged in support thereof) having maturities of not more than one year from the date of acquisition by such Person, (b) time deposits and certificates of deposit of any commercial bank having, or which is the principal banking subsidiary of a bank holding company organized under the laws of the United States, any State thereof or, the District of Columbia having capital, surplus, and undivided profits aggregating in excess of $500,000,000, having maturities of not more than one year from the date of acquisition by such Person, (c) repurchase obligations with a term of not more than 90 days for underlying securities of the types described in clause (a) above entered into with any bank meeting the qualifications specified in clause (b) above, (d) commercial paper issued by any issuer rated at least A-1 by S&P or at least P-1 by Moody's (or carrying an equivalent rating by a nationally recognized rating agency if both of the two named rating agencies cease publishing ratings of commercial paper issuers generally), and in each case maturing not more than one year after the date of acquisition by such Person, or (e) investments in money market funds substantially all of whose assets are comprised of securities of the types described in clauses (a) through (d) above.

**"Change in Law"** means the occurrence after the date of this Agreement of (a) the adoption or effectiveness of any law, rule, regulation, judicial ruling, judgment, or treaty, (b) any change in any law, rule, regulation, or treaty or in the administration, interpretation, implementation, or application by any Governmental Authority of any law, rule, regulation, or treaty, or (c) the making or issuance by any Governmental Authority of any request, rule, guideline, or directive, whether or not having the force of law; provided that, notwithstanding anything herein to the contrary (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, as amended, and all requests, rules, guidelines, or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines, or directives concerning capital adequacy promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority), or the United States or foreign regulatory authorities shall, in each case, be deemed to be a "Change in Law," regardless of the date enacted, adopted, or issued.

**"Change of Control"** means (a) any Person or group of persons within the meaning of § 13(d)(3) of the Securities Exchange Act of 1934 becomes the beneficial owner, directly or indirectly, of 35% or more of the outstanding Equity Interests of the Borrower, or (b) the majority of the seats (other than vacant seats) on the board of directors of the Borrower cease to be occupied by persons who were members of the board of directors of Borrower on the closing date.

**"Closing Date"** means the date on which the conditions precedent set forth in Section 3.01 are satisfied or waived.

**"Code"** means the Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**"Collateral"** has the meaning for such term set forth in the Security Agreement.

**"Debt"** of any Person at any date, without duplication, means (a) all indebtedness of such Person for borrowed money, (b) all obligations of such Person for the deferred purchase price of property or services (other than (i) trade payables incurred in the ordinary course of business and not past due for more than 61 days after the date on which each such trade payable or account payable was created and (ii) any earn-out, purchase price adjustment, or similar obligation until such obligation appears in the liabilities section of the balance sheet of such Person, (c) all obligations of such Person evidenced by notes, bonds, debentures, or other similar instruments, (d) all indebtedness created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (e) all obligations of such Person to purchase, redeem, retire, defease, or otherwise make any payment in respect of any Equity Interests in such Person or any other Person or any warrants, rights, or options to acquire such Equity Interests, valued, in the case of redeemable preferred interests, at the greater of its voluntary or involuntary liquidation preference plus accrued and unpaid dividends, (f) all obligations of such Person, contingent or otherwise, as an account party or applicant under acceptance, letter of credit, or similar facilities in respect of obligations of the kind referred to in subsections (a) through (e) of this definition, (g) all Guaranty Obligations of such Person in respect of obligations of the kind referred to in subsections (a) through (f) above, and (h) all obligations of the kind referred to in subsections (a) through (g) above secured by (or which the holder of such obligation has an existing right, contingent or otherwise, to be secured by) any Lien on property (including accounts and contract rights) owned by such Person, whether or not such Person has assumed or become liable for the payment of such obligation.

**"Debtor Relief Law"** means the Bankruptcy Code and all other liquidation, bankruptcy, assignment for the benefit of creditors, conservatorship, moratorium, receivership, insolvency, rearrangement, reorganization, or similar debtor relief laws of the US or other applicable jurisdictions in effect from time to time.

**"Default"** means any of the events specified in Section 7.01 which constitutes an Event of Default or which, upon the giving of notice, the lapse of time, or both pursuant to Section 7.01 would, unless cured or waived, become an Event of Default.

**"Disposition"** or **"Dispose"** means the sale, transfer, license, lease, or other disposition (whether in one transaction or in a series of transactions, and including any sale and leaseback transaction) of any property (including, without limitation, any Equity Interests) by any Person (or the granting of any option or other right to do any of the foregoing), including any sale, assignment, transfer, or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith.

**"Dollars"** means the lawful currency of the United States.

**"Eligible Assignee"** has the meaning set forth in Section 8.04.

**"Environmental Action"** means any action, suit, demand, demand letter, claim, notice of violation or non-compliance, notice of liability or potential liability, investigation, proceeding, consent order, or consent agreement relating in any way to any Environmental Law, any permit issued under any Environmental Law, or any Hazardous Material, or arising from alleged injury or threat to health, safety, or the environment including (a) by any Governmental Authority for enforcement, clean-up, removal, response, remedial or other actions, or damages and (b) any Governmental Authority or third party for damages, contribution, indemnification, cost recovery, compensation, or injunctive relief.

**"Environmental Law"** means any and all Federal, state, foreign, local, or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees, requirements of any Governmental Authority, or other Requirements of Law (including common law) as now or may at any time hereafter be in effect, and any binding judicial or administrative interpretation thereof, including any binding judicial or administrative order, consent decree, or judgment, regulating, relating to, or imposing liability or standards of conduct concerning protection of the environment or, to the extent relating to exposure to substances that are harmful or detrimental to the environment, or human health, or safety.

**"Equity Interests"** means any and all shares, interests, participations, or other equivalents (however designated) of capital stock of a corporation, any and all equivalent ownership (or profit) interests in a Person (other than a corporation), securities convertible into or exchangeable for shares of capital stock of (or other ownership or profit interests in) such Person, and any and all warrants, rights, or options to purchase any of the foregoing, whether voting or nonvoting, and whether or not such shares, warrants, options, rights, or other interests are authorized or otherwise existing on any date of determination.

**"ERISA"** means the Employee Retirement Income Security Act of 1974, as amended from time to time.

**"ERISA Affiliate"** means an entity, whether or not incorporated, that is under common control with the Borrower within the meaning of §4001 of ERISA or is part of a group that includes the Borrower and that is treated as a single employer under §414 of the Code.

**"Event of Default"** has the meaning set forth in Section 7.01.**"GAAP"** means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by a significant segment of the accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied.

**"Governmental Authority"** means the government of any nation or any political subdivision thereof, whether at the national, state, territorial, provincial, municipal, or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank, or other entity exercising executive, legislative, judicial, taxing, regulatory, or administrative powers or functions of, or pertaining to, government.

**"Guaranty Obligation"** as to any Person, means any (a) obligation, contingent or otherwise, of such Person guaranteeing or having the effect of guaranteeing any Debt or other obligation payable or performable by another Person (the "primary obligor") in any manner, whether directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Debt or other obligation, (ii) to purchase or lease property, securities, or services for the purpose of assuring the obligee in respect of such Debt or other obligation of the payment or performance of such Debt or other obligation, (iii) to maintain working capital, equity capital, net worth, or solvency or liquidity, or any level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Debt or other obligation, or (iv) entered into for the purpose of assuring in any other manner the obligee in respect of such Debt or other obligation of the payment or performance thereof or to protect such obligee against loss in respect thereof (in whole or in part) or (b) Lien on any assets of such Person securing any Debt or other obligation of any other Person, whether or not such Debt or other obligation is assumed by such Person (or any right, contingent or otherwise, of any holder of such Debt to obtain any such Lien). The amount of any Guaranty Obligation shall be deemed to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guaranty Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith.

**"Hazardous Materials"** means (a) any gasoline, petroleum or petroleum products or by-products, radioactive materials, friable asbestos or asbestos-containing materials, urea-formaldehyde insulation, polychlorinated biphenyls, and radon gas and (b) any other chemicals, materials, or substances designated, classified, or regulated as hazardous or toxic or as a pollutant or contaminant under any Environmental Law.

**"Insolvency"** with respect to any Multiemployer Plan, means such Plan is insolvent within the meaning of §4245 of ERISA.

**"Intellectual Property"** means any and all intellectual property, including copyrights, copyright licenses, patents, patent licenses, trademarks, trademark licenses, technology, know-how, and processes, all rights therein, and all rights to sue at law or in equity for any past, present, or future infringement, violation, misuse, misappropriation, or other impairment thereof, whether arising under United States, multinational, or foreign laws, or otherwise, including the right to receive injunctive relief and all proceeds and damages therefrom.

**"Lien"** means any mortgage, pledge, hypothecation, assignment (as security), deposit arrangement, encumbrance, lien (statutory or other), charge, or other security interest, or any preference, priority, or other security agreement or preferential arrangement of any kind or nature whatsoever having substantially the same economic effect as any of the foregoing (including any conditional sale or other title retention agreement and any capital lease).

**"Loan Documents"** means, collectively, this Agreement, the Security Agreement, the Promissory Note, the Right of First Offer Agreement and all other agreements, documents, certificates, and instruments executed and delivered to the Lender by any Loan Party in connection therewith.

**"Loan Parties"** means the Borrower and each Subsidiary of the Borrower that is or becomes a party to a Loan Document.

**"Margin Stock"** has the meaning specified in Regulation U of the Board as in effect from time to time.

**"Material Contracts"** with respect to any Person, means each contract to which such Person is a party involving aggregate consideration payable by or to such Person equal to at least $100,000 or otherwise material to the business, condition (financial or otherwise), operations, performance, properties, or prospects of such Person.

**"Maturity Date"** means the date that is the third anniversary of the Closing Date.

**"Moody's"** means Moody's Investors Service, Inc., and any successor thereto.

**"Multiemployer Plan"** means a Plan which is a multiemployer plan as defined in § 4001(a)(3) of ERISA to which the Borrower or any ERISA Affiliate makes or is obligated to make contributions.

**"Net Cash Proceeds"** means (a) in connection with any Asset Sale or any Recovery Event, the proceeds thereof in the form of cash and Cash Equivalents (including any such proceeds actually received from deferred payments of principal pursuant to a note, a receivable, or otherwise), net of attorneys' fees, accountants' fees, investment banking fees, amounts required to be reserved for indemnification, adjustment of purchase price, or similar obligations pursuant to the agreements governing such Asset Sale, amounts required to be applied to the repayment of Debt secured by a Lien expressly permitted hereunder on any asset that is the subject of such Asset Sale or Recovery Event (other than any Lien pursuant to a Loan Document) and other customary fees and expenses actually incurred in connection therewith and net of taxes paid (after taking into account any available tax credits or deductions and any tax sharing arrangements) and (b) in connection with any issuance or sale of Equity Interests or any incurrence of Debt, the cash proceeds received from such issuance or incurrence, net of attorneys' fees, investment banking fees, accountants' fees, underwriting discounts and commissions, and other customary fees and expenses actually incurred in connection therewith.

**"Obligations"** means all advances to, and debts (including principal, interest, fees, costs, and expenses), liabilities, covenants, and indemnities of, any Loan Party arising under any Loan Document or otherwise with respect to the Loan, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising. **"Participant"** has the meaning set forth in Section 8.04(c).

**"Participant Register"** has the meaning set forth in Section 8.04(c).

**"PATRIOT Act"** has the meaning set forth in Section 8.13.

**"PBGC"** means the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA (or any successor thereto).

**"Person"** means any individual, corporation, limited liability company, trust, joint venture, association, company, limited or general partnership, unincorporated organization, Governmental Authority, or other entity.

**"Plan"** at any one time, means any "employee benefit plan" that is covered by ERISA and in respect of which the Borrower or an ERISA Affiliate is (or, if such plan were terminated at such time, would under §4062 or §4069 of ERISA be deemed to be) an "employer" as defined in §3(5) of ERISA.

**"Properties"** has the meaning set forth in Section 4.09(a).

**"Recovery Event"** means any settlement of or payment to any Loan Party in respect of any property or casualty insurance claim or any condemnation proceeding relating to any asset of any Loan Party.

**"Related Parties"** with respect to any Person, means such Person's Affiliates and the directors, officers, employees, partners, agents, trustees, administrators, managers, advisors, and representatives of it and its Affiliates.

**"Reorganization"** with respect to any Multiemployer Plan, means that such plan is in reorganization within the meaning of §4241 of ERISA.

**"Reportable Event"** means any of the events set forth in §4043(c) of ERISA, other than those events as to which the thirty-day notice period is waived.

**"Requirement of Law"** as to any Person, means the certificate of incorporation and by-laws or other organizational or governing documents of such Person, and any law (including common law), statute, ordinance, treaty, rule, regulation, order, decree, judgment, writ, injunction, settlement agreement, requirement or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

**"Responsible Officer"** with respect to any Person, means the chief executive officer, president, or chief financial officer of such Person, except that with respect to financial matters, the Responsible Officer shall be the chief financial officer or treasurer of such Person.

**"Restricted Payments"** has the meaning set forth in Section 6.07.

**"Right of First Offer Agreement"** means that certain Right of First Offer Agreement in the form as set forth in Exhibit II hereto to be entered between the parties on the Closing Date.

**"S&P"** means Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc., and any successor thereto.

**"SEC"** means the Securities and Exchange Commission (or successors thereto or an analogous Governmental Authority).

**"Security Agreement"** means the Security Agreement made by the Borrower and in favor of the Lender, dated as of the Closing Date, as the same may be amended, amended and restated, supplemented, or otherwise modified from time to time to the extent permitted under the Loan Documents.

**"Single Employer Plan"** means any Plan that is covered by Title IV of ERISA, other than a Multiemployer Plan.

**"Solvent"** with respect to any Person as of any date of determination, means that on such date (a) the present fair salable value of the property and assets of such Person exceeds the debts and liabilities, including contingent liabilities, of such Person, (b) the present fair salable value of the property and assets of such Person is greater than the amount that will be required to pay the probable liability of such Person on its debts and other liabilities, including contingent liabilities, as such debts and other liabilities become absolute and matured, (c) such Person does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts and liabilities, including contingent liabilities, beyond its ability to pay such debts and liabilities as they become absolute and matured, and (d) such Person does not have unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted. The amount of contingent liabilities at any time shall be computed as the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

**"Subsidiary"** as to any Person, means any corporation, partnership, limited liability company, joint venture, trust, or estate of or in which more than 50% of (a) the issued and outstanding capital stock having ordinary voting power to elect a majority of the board of directors of such corporation (irrespective of whether at the time capital stock of any other class of such corporation may have voting power upon the happening of a contingency), (b) the interest in the capital or profits of such partnership, limited liability company, or joint venture or, (c) the beneficial interest in such trust or estate is at the time directly or indirectly owned or controlled through one or more intermediaries, or both, by such Person. Unless otherwise qualified, all references to a "Subsidiary" or to "Subsidiaries" in this Agreement shall refer to a Subsidiary or Subsidiaries of the Borrower.

**"Taxes"** means any and all present or future income, stamp, or other taxes, levies, imposts, duties, deductions, charges, fees, or withholdings imposed, levied, withheld, or assessed by any Governmental Authority, together with any interest, additions to tax, or penalties imposed thereon and with respect thereto.

**"Termination Date"** means the earliest to occur of (a) the Maturity Date and (b) the date on which the maturity of the Loan is accelerated (or deemed accelerated) pursuant to Section 7.02.

**"Uniform Commercial Code"** means the Uniform Commercial Code as in effect in the state of Delaware from time to time.

**Section 1.02 Interpretation.** With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document:

&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 definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine, and neuter forms. The words "include," "includes," and "including" shall be deemed to be followed by the phrase "without limitation." The word "will" shall be construed to have the same meaning and effect as the word "shall." Unless the context requires otherwise (i) any definition of or reference to any agreement, instrument, or other document shall be construed as referring to such agreement, instrument, or other document as from time to time amended, supplemented, or otherwise modified (subject to any restrictions on such amendments, supplements, or modifications set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to include such Person's successors and assigns, (iii) the words "herein," "hereof," and "hereunder," and words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits, and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, the Loan Document in which such references appear, (v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending, replacing, or interpreting such law and any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified, or supplemented from time to time, and (vi) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts, and contract rights.

&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 the computation of periods of time from a specified date to a later specified date, the word "from" means "from and including;" the words "to" and "until" each mean "to but excluding;" and the word "through" means "to and including."

&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) Any reference herein or in any other Loan Document to the satisfaction, repayment, or payment in full of the Obligations shall mean the repayment in Dollars in full in cash or immediately available funds (and in the case of any other contingent Obligations, providing cash collateral or other collateral as may be requested by the Lender) of all of the Obligations.

&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) All accounting terms not specifically or completely defined herein shall be construed in conformity with, and all financial data required to be submitted pursuant to this Agreement shall be prepared in conformity with, GAAP as in effect from time to time, and applied on a consistent basis in a manner consistent with that used in preparing the Borrower's financial statements, except as otherwise specifically prescribed herein.

&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) For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law (or any comparable event under a different jurisdiction's laws): (i) if any asset, right, obligation or liability of any Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been transferred from the original Person to the subsequent Person, and (ii) if any new Person comes into existence, such new Person shall be deemed to have been organized and acquired on the first date of its existence by the holders of its equity interests at such time.

**ARTICLE II<br> THE LOAN**

**Section 2.01 The Loan.** Subject to the terms and conditions of this Agreement, the Lender agrees to make, in a single advance, a loan to the Borrower on the Closing Date in an amount of ONE MILLION DOLLARS ($1,000,000). The Loan will be evidenced by a promissory note (the **"Promissory Note")** substantially in the form of Exhibit I hereto.

**Section 2.02 Repayment of the Loan.** The Loan, and all principal and interest thereunder, shall be payable in full on the Maturity Date. The Borrower hereby unconditionally promises to pay to the Lender in full in cash, to the extent not previously paid, the then-unpaid principal amount of and accrued interest under the Loan on the Maturity Date.

**Section 2.03 Optional Prepayment.** The Borrower may at any time and from time to time prepay the Loans, in whole but not in part, without premium or penalty.

**Section 2.04 Interest.** Interest shall accrue on the principal amount of the Loan at the rate of seven percent (7.0%) per annum (the **"Interest Rate"),** compounded annually. All interest and fees accruing hereunder shall be calculated on the basis of actual days elapsed during a year of 360 days. Lender's records in respect of loans advanced, accrued interest, payments received and applied, and other matters in respect of calculation of the amount payable shall be deemed conclusive absent manifest error.

**ARTICLE III** 

**CONDITIONS PRECEDENT**

**Section 3.01 Conditions Precedent to Initial Loans.** The obligation of the Lender to make the Loan requested to be made by it hereunder is subject to the satisfaction or the waiver by the Lender of the following conditions precedent:

&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 Lender shall have received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) this Agreement, duly executed and delivered by an authorized officer of the Borrower; 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; (ii) the Security Agreement, the Promissory Note, the Right of First Offer Agreement and any other Loan Documents, in each case executed and delivered by the Loan Parties party thereto;

&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 Lender shall have received:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) financial statements of the Borrower for the two most recent fiscal years ended prior to the Closing Date as to which such financial statements are available; 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;(ii) unaudited interim financial statements of the Borrower for each fiscal quarter ended after the date of the latest applicable financial statements delivered pursuant to clause (i) of this Section 3.01(b) as to which such financial statements are available, and such financial statements shall not, in the reasonable judgment of the Lender, reflect any material adverse change in the financial condition of the Borrower, as reflected in the financial statements described in clause (ii) of this Section 3.01(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;(c) All governmental and third-party approvals necessary in connection with the continuing operations of the Loan Parties and their Subsidiaries, and the transaction contemplated hereby shall have been obtained and be in full force and effect, and all applicable waiting periods shall have expired without any action being taken or threatened by any competent authority that would restrain, prevent, or otherwise impose adverse conditions on the financing contemplated hereby;

&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 Lender shall have received satisfactory evidence that all existing indebtedness of the Borrower shall have been paid in full, or will be paid in full from the proceeds of the initial Loans 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;(e) The Lender shall have received results of a recent lien search in each of the jurisdictions where the Loan Parties are organized and the assets of the Loan Parties are located, and such searches confirm the priority of the Liens in favor of the Lender and reveal no liens on any of the assets of the Loan 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;(f) Before giving effect to the Loan financing, there shall have occurred no Material Adverse Effect since December 31, 2022;

&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 Lender shall have received, in form and substance satisfactory to it, a certificate of each Loan Party, certified by a secretary of such Loan Party, dated the Closing Date, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 of formation, organization, or incorporation, as applicable, of each Loan Party certified by the relevant authority of the jurisdiction of organization of such Loan 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) by-laws, operating agreements, and partnership agreements, as applicable, for each Loan Party as in effect on the date on which the resolutions referred to below were adopted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) resolutions of the governing body of each Loan Party approving the transaction and each Loan Document to which it is or is to be a party, and of all documents evidencing other necessary corporate, partnership, or limited liability company action;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 certification that the names, titles, and signatures of the officers of each Loan Party authorized to sign each Loan Document to which it is or is to be a party and other documents to be delivered hereunder and thereunder are true and correct;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) a good standing certificate for each Loan Party from its jurisdiction of organization; 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; (vi) a good standing certificate for each Loan Party from each state where it is qualified to do business;

&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 Lender shall have received satisfactory evidence that each document (including any Uniform Commercial Code financing statement and appropriate filings with the United States Patent and Trademark Office or United States Copyright Office) required by the Loan Documents or any Requirement of Law or reasonably requested by the Lender to be filed, registered, or recorded in order to create in favor of the Lender a perfected first priority Lien on the Collateral described therein, prior and superior in right to any other Person (other than with respect to Liens expressly permitted under this Agreement), shall be in proper form for filing, registration, and recording/shall have been properly filed (or provided to the Lender) or executed and delivered in each jurisdiction.

**ARTICLE IV** 

**REPRESENTATIONS AND WARRANTIES**

To induce the Lender to enter into this Agreement and to make the Loans hereunder, the Borrower hereby represents and warrants to the Lender that:

**Section 4.01 Existence; Compliance With Laws.** Each Loan Party (a) is duly organized, validly existing, and in good standing under the laws of the jurisdiction of its formation, (b) is duly qualified as a foreign corporation or other organization and in good standing under the laws of each jurisdiction where its ownership, lease, or operation of property or the conduct of its business requires such qualification, and (c) is in compliance with all Requirements of Law.

**Section 4.02 Power; Authorization; Enforceability.**

&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) Each Loan Party has the power and authority, and the legal right, to own or lease and operate its property, and to carry on its business as now conducted and as proposed to be conducted, and to execute, deliver, and perform the Loan Documents to which it is a party and, in the case of the Borrower, to obtain Loans hereunder. Each Loan Party has taken all necessary organizational action to authorize the execution, delivery, and performance of the Loan Documents to which it is a party and, in the case of the Borrower, to authorize the borrowing of Loans on the terms and conditions contained herein. No consent or authorization of, filing with, notice to, or other act by, or in respect of, any Governmental Authority or any other Person is required in connection with the extensions of credit hereunder or with the execution, delivery, performance, validity, or enforceability of this Agreement or any of the Loan Documents. Each Loan Document has been duly executed and delivered by each Loan Party party thereto.

&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) This Agreement constitutes, and each other Loan Document when delivered hereunder will constitute, a legal, valid, and binding obligation of each Loan Party party thereto, enforceable against each such Loan Party in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditors' rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

**Section 4.04 Financial Statements.**

&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 balance sheet of the Borrower as at December 31, 2022 and the related statements of income and of cash flows for the fiscal year ended on such date, present fairly the financial condition of the Borrower as at such date, and the results of its operations and its cash flows for the fiscal year then ended, in accordance with GAAP.

&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 unaudited balance sheet of the Borrower as at September 30, 2023, and the related unaudited statements of income and of cash flows for the nine-month period ended on such date, duly certified by the chief financial officer of the Borrower, present fairly the financial condition of the Borrower as at such date, and the results of its operations and its cash flows for the nine-month period then ended, in accordance with GAAP (subject to the absence of footnotes).

**Section 4.05 No Material Adverse Effect.** Since December 31, 2022, no development or event has occurred that has had or could reasonably be expected to have a Material Adverse Effect.

**Section 4.06 No Litigation.** No action, suit, litigation, investigation, or proceeding of or before any arbitrator or Governmental Authority is pending or, to the knowledge of the Borrower, threatened by or against any Loan Party or against any of its property or assets (a) with respect to any of the Loan Documents or any of the transactions contemplated hereby or thereby or (b) that could reasonably be expected to have a Material Adverse Effect

**Section 4.07 No Default.** No Default or Event of Default has occurred and is continuing and no default has occurred and is continuing under or with respect to any Contractual Obligation of the Borrower or any of its Subsidiaries that could reasonably be expected to have a Material Adverse Effect.

**Section 4.08 Ownership of Property; Liens.**

&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) Each Loan Party has fee simple title to, or a valid leasehold interest in, all its real property, and good title to, or a valid leasehold interest in, all its other property, and none of such property is subject to any Lien except as permitted by Section 6.02.

&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) Part A of Schedule 4.08 sets forth a complete and accurate list as of the date hereof of all Liens on the property or assets of any Loan Party, showing as of the date hereof the lienholder thereof and the property or assets of such Loan Party subject thereto.

&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) Part B of Schedule 4.08 sets forth a complete and accurate list as of the date hereof of all real property owned by any Loan Party or any of its Subsidiaries with a fair market value, in excess of $100,000, showing as of the date hereof, the street address, county or other relevant jurisdiction, state, record owner, and book value thereof.

&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) Part C of Schedule 4.08 sets forth a complete and accurate list as of the date hereof of all leases of real property under which any Loan Party is the lessee with annual rent payments in excess of $100,000, showing as of the date hereof, the street address, county or other relevant jurisdiction, state, lessor, lessee, expiration date, and annual rental cost thereof.

&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) Part D of Schedule 4.08 sets forth a complete and accurate list as of the date hereof of all leases of real property under which any Loan Party is the lessor with annual rental income in excess of $100,000, showing as of the date hereof, the street address, county or other relevant jurisdiction, state, lessor, lessee, expiration date, and annual rental income thereof.

**Section 4.09 Environmental Matters.** Except as set forth on Schedule 4.09:

&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) none of the facilities or properties currently or formerly owned, leased, or operated by any Loan Party (the **"Properties")** contain or previously contained, any Hazardous Materials in amounts or concentrations or under circumstances that constitute or constituted a violation of, or could result in liability under, any Environmental Law;

&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) no Loan Party has received any notice of actual or alleged violation, non-compliance, or liability regarding compliance with Environmental Laws or other environmental matters or with respect to any of the Properties or the business operated by any Loan Party, nor is there any reason to believe that any such notice will be received or is being threatened;

&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) the Properties and all operations at the Properties are and formerly have been in compliance with all applicable Environmental Laws, and there is no contamination at, under, or about the Properties or violation of any Environmental Law with respect to the Properties or the business operated by any Loan 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;(d) Hazardous Materials have not been transported or disposed of from the Properties in violation of, or in a manner or to a location that could result in liability under, any Environmental Law; no Hazardous Materials have been generated, treated, stored, or disposed of at, on, or under any of the Properties in violation of, or in a manner that could result in liability under, any applicable Environmental Law; and there has been no release or threat of release of Hazardous Materials at or from the Properties, or arising from or related to the operations of any Loan Party in connection with the Properties or the business operated by any Loan Party, in violation of or in amounts or in a manner that could result in liability under Environmental 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;(e) no administrative or governmental action or judicial proceeding is pending or, to the knowledge of the Borrower, threatened, under any Environmental Law to which any Loan Party is or will be a party with respect to the Properties or the business operated by any Loan Party, nor are there any decrees or orders or other administrative or judicial requirements outstanding under any Environmental Law with respect to the Properties or the business operated by any Loan Party; 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;(f) no Loan Party has assumed any liability of any other Person under Environmental Laws.

**Section 4.10 Insurance.** The properties of the Loan Parties are insured with financially sound and reputable insurance companies which are not Affiliates of the Borrower, in such amounts, with such deductibles, and covering such risks as are customarily carried by companies engaged in similar businesses and owning similar properties in localities where the applicable Loan Party operates. Schedule 4.10 sets forth a description of all insurance maintained by or on behalf of the Loan Parties as of the Closing Date. Each insurance policy listed on Schedule 4.10 is in full force and effect and all premiums in respect thereof that are due and payable have been paid.

**Section 4.11 Material Contracts.** Schedule 4.11 sets forth all Material Contracts to which any Loan Party is a party or is bound as of the Closing Date. The Borrower has delivered true, correct, and complete copies of such Material Contracts to the Lender on or before the Closing Date. The Loan Parties are not in breach or in default in any material respect of or under any Material Contract and have not received any notice of the intention of any other party thereto to terminate any Material Contract.

**Section 4.12 Intellectual Property.** Each Loan Party owns, or is licensed to use, all Intellectual Property necessary for the conduct of its business as currently conducted or proposed to be conducted. No material claim has been asserted and is pending by any Person challenging the use, validity, or effectiveness of any Intellectual Property, nor is the Borrower aware of any valid basis for any such claim. The use of Intellectual Property by each Loan Party does not materially infringe on the rights of any Person. Borrower owns the PFO and ASD closure devices and all intellectual property associated therewith or related thereto, in each case, free and clear of all liens, claims and encumbrances, and owns all rights to manufacture, commercialize, market, sell and distribute the PFO and ASD closure devices, free and clear of all liens, claims, encumbrances or contractual restriction.

**Section 4.13 Taxes.** Each Loan Party has filed all Federal, state, and other tax returns that are required to be filed and has paid all taxes shown thereon to be due, together with applicable interest and penalties, and all other taxes, fees, or other charges imposed on it or any of its property by any Governmental Authority (except those that are currently being contested in good faith by appropriate proceedings and with respect to which reserves in conformity with GAAP have been provided on the books of the relevant Loan Party). No tax Lien has been filed, and, to the knowledge of the Borrower, no claim is being asserted, with respect to any such tax, fee, or other charge. No Loan Party is a party to any tax sharing agreement.

**Section 4.14 ERISA.** Each Plan is in compliance with ERISA, the Code and any Requirement of Law in all material respects; neither a Reportable Event nor an "accumulated funding deficiency" (within the meaning of §412 or §430 of the Code or §302 of ERISA) has occurred (or is reasonably likely to occur) with respect to any Plan. No Single Employer Plan has terminated, and no Lien has been incurred in favor of the PBGC or a Plan. Based on the assumptions used to fund each Single Employer Plan, the present value of all accrued benefits under each such Plan did not materially exceed the value of the assets of such Plan allocable to such accrued benefit as of the last annual valuation date prior to the date on which this representation is made. Neither any Loan Party nor any ERISA Affiliate has incurred or is reasonably expected to incur any Withdrawal Liability that could reasonably be expected to result in a material liability under ERISA,] in connection with any Multiemployer Plan. No such Multiemployer Plan is (or is reasonably expected to be) terminated, in Reorganization, or insolvent (within the meaning of §4245 of ERISA).

**Section 4.15 Margin Regulations.** The Borrower is not engaged in the business of extending credit for the purpose of purchasing or carrying Margin Stock, and no proceeds of any Loan will be used to purchase or carry any Margin Stock or to extend credit to others for the purpose of purchasing or carrying any Margin Stock.

**Section 4.16 Investment Company Act.** No Loan Party is or is required to be registered as an "investment company" under the Investment Company Act of 1940, as amended.

**Section 4.17 Subsidiaries; Equity Interests.**

&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) Except as disclosed to the Lender by the Borrower in writing from time to time after 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) The Borrower has no 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;(b) All of the outstanding Equity Interests in the Borrower have been validly issued, are fully paid and non-assessable, and are owned by the Persons and in the amounts specified on Part A of Schedule 4.17 free and clear of all Liens except those created under the Loan 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;(c) No Loan Party has any equity investments in any other corporation or entity other than those disclosed on Part B of Schedule 4.17.

**Section 4.18 Labor Matters.** Except as, in the aggregate, could not reasonably be expected to have a Material Adverse Effect (a) there are no strikes, lockouts, or other labor disputes pending or, to the knowledge of the Borrower, threatened against any Loan Party, (b) hours worked by and wages paid to employees of each Loan Party have not violated the Fair Labor Standards Act or any other applicable Requirement of Law, and (c) all payments due in respect of employee health and welfare insurance from any Loan Party have been paid or properly accrued on the books of the relevant Loan Party.

**Section 4.19** Accuracy of Information, Etc. The Borrower has disclosed to the Lender all agreements, instruments, and corporate or other restrictions to which it is subject as of the Closing Date, and all other matters known to it as of the Closing Date, that, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect. No statement or information contained in this Agreement, any other Loan Document, or any other document, certificate, or statement furnished by or on behalf of the Borrower to the Lender, for use in connection with the transactions contemplated by this Agreement or the other Loan Documents, contained as of the date such statement, information, document, or certificate was so furnished, any untrue statement of a material fact or omitted to state a material fact necessary to make the statement contained herein or therein not misleading.

**Section 4.20 Security Documents.** The Security Agreement creates in favor of the Lender a legal, valid, continuing, and enforceable security interest in the Collateral, the enforceability of which is subject to applicable bankruptcy, insolvency, reorganization, moratorium, or other laws affecting creditors' rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law. The financing statements, releases and other filings are in appropriate form and have been or will be filed in the offices specified in Schedule 3 of the Security Agreement. Upon such filings and/or the obtaining of "control" (as defined in the Uniform Commercial Code), the Lender will have a perfected Lien on, and security interest in, to and under all right, title, and interest of the grantors thereunder in all Collateral that may be perfected by filing, recording, or registering a financing statement or analogous document (including without limitation the proceeds of such Collateral subject to the limitations relating to such proceeds in the Uniform Commercial Code) or by obtaining control, under the Uniform Commercial Code (in effect on the date this representation is made) in each case prior and superior in right to any other Person, except for Liens permitted under Section 6.02.

**Section 4.21 Solvency.** Each Loan Party is, and after giving effect to the incurrence of all Debt and obligations incurred in connection herewith will be, Solvent.

**Section 4.22 PATRIOT Act; OFAC and Other Regulations.**

&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) No Loan Party, any of its Subsidiaries, or any of the Affiliates or respective officers, directors, brokers, or agents of such Loan Party, Subsidiary, or Affiliate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 violated any Anti-terrorism Laws; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) has engaged in any transaction, investment, undertaking, or activity that conceals the identity, source, or destination of the proceeds from any category of prohibited offenses designated by the Organization for Economic Co-operation and Development's Financial Action Task Force on Money Laundering.

&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) No Loan Party, any of its Subsidiaries, or any of the Affiliates or respective officers, directors, brokers, or agents of such Loan Party, Subsidiary, or Affiliate that is acting or benefiting in any capacity in connection with the Loans is a Blocked 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;(c) No Loan Party, any of its Subsidiaries, or any of the Affiliates or respective officers, directors, brokers, or agents of such Loan Party, Subsidiary, or Affiliate acting or benefiting in any capacity in connection with the Loans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) conducts any business or engages in making or receiving any contribution of goods, services, or money to or for the benefit of any Blocked 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) deals in, or otherwise engages in any transaction related to, any property or interests in property blocked pursuant to any Anti-terrorism Law; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii) engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of the prohibitions set forth in any Anti-terrorism Law.

**ARTICLE V** 

**AFFIRMATIVE COVENANTS**

During the term hereof, the Borrower shall, and shall cause its Subsidiaries to (except that, in the case of the covenants set forth in Section 5.01, Section 5.02, and Section 5.03, the Borrower shall furnish all applicable materials to the Lender):

**Section 5.01 Financial Statements.** Furnish to the 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;(a) As soon as available, but in any event within 120 days after the end of each fiscal year of the Borrower, a copy of the balance sheet of the Borrower as at the end of such year and the related statements of income and of cash flows for such year, setting forth in each case in comparative form the figures for the previous year; 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;(b) As soon as available, but in any event not later than 60 days after the end of each of the first three quarterly periods of each fiscal year of the Borrower, the unaudited balance sheet of the Borrower as at the end of such quarter and the related unaudited statements of income and of cash flows for such quarter and the portion of the fiscal year through the end of such quarter, setting forth in each case in comparative form the figures for the previous year, certified by a Responsible Officer as being fairly stated in all material respects; 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;(c) As soon as available, but in any event not later than 45 days after the end of each month occurring during each fiscal year of the Borrower, the unaudited balance sheet of the Borrower as at the end of such month and the related unaudited statements of income and of cash flows for such month and the portion of the fiscal year through the end of such month, setting forth in each case in comparative form the figures for the previous year, certified by a Responsible Officer as being fairly stated in all material respects.

All such financial statements shall be complete and correct in all material respects and shall be prepared in reasonable detail and in accordance with GAAP applied (except as approved by such Responsible Officer and disclosed in reasonable detail therein) consistently throughout the periods reflected therein and with prior periods.

**Section 5.02 Certificates; Other Information.** The Borrower shall furnish the following to the 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;(a) A list of all Intellectual Property owned or leased by any Loan Party as of the Closing Date and, on each anniversary thereof, a list of any Intellectual Property acquired by any Loan Party since the date of the most recent report delivered pursuant to this clause (or, in the case of the first such report so delivered, since 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;(b) Promptly, and in any event within 30 days thereafter, to the extent not previously disclosed to the Lender, a description of any change in the jurisdiction of organization of any Loan 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;(c) Promptly after the same are sent, copies of all proxy statements, financial statements, and reports that any Loan Party sends to any of its securities holders, and copies of all reports and registration statements that any Loan Party files with the SEC or any national securities exchange;

&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) Promptly after the same are sent, copies of any statement or report sent to any holder of debt securities of any Loan Party pursuant to the terms of any indenture, loan agreement, or similar agreement and not otherwise required to be furnished to the Lender pursuant to any other clause of this Section;

&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) Promptly upon receipt of the same, copies of all notices, requests, and other documents received by any Loan Party under or pursuant to any Material Contract or instrument, indenture, or loan agreement regarding or related to any breach or default by any party thereto or any other event that could materially impair the value of the interests or the rights of any Loan Party or otherwise have a Material Adverse Effect, and such information and reports regarding Material Contracts and such instruments, indentures, and loan agreements as the Lender may reasonably request from time to time;

&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) Such other information respecting the business, condition (financial or otherwise), operations, performance, properties, or prospects of any Loan Party as the Lender may from time to time reasonably request.

**Section 5.03 Notices.** Promptly, and in any event within five days, give notice to the Lender 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;(a) The occurrence of any Default or Event of Default;

&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) Any (i) default or event of default under any Material Contract of any Loan Party or (ii) litigation, investigation, or proceeding that may exist at any time between any Loan Party and any Governmental Authority.

&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) Any litigation or proceeding affecting any Loan Party (i) and not covered in full by insurance, (ii) in which injunctive or similar relief is sought, or (iii) which relates to any Loan Document;

&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 following events, as soon as possible and in any event within 15days after the Borrower or any of its ERISA Affiliates knows or has reason to know thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 occurrence of any Reportable Event with respect to any Plan, a failure to make any required contribution to a Plan, the creation of any Lien in favor of the PBGC or any Multiemployer Plan; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii) the institution of proceedings or the taking of any other action by the PBGC or the Borrower or any ERISA Affiliate or any Multiemployer Plan with respect to the withdrawal from, or the termination, Reorganization, or Insolvency of, any 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;(e) The occurrence of any Environmental Action against or of any noncompliance by any Loan Party with any Environmental Law or relevant permit that could reasonably be expected to have 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;(f) Any development or event that has had or could reasonably be expected to have a Material Adverse Effect.

Each notice pursuant to this Section 5.03 shall be accompanied by a statement of a Responsible Officer of the Borrower setting forth details of the occurrence referred to therein and stating what action the relevant Loan Party proposes to take with respect thereto.

**Section 5.04 Maintenance of Existence; Compliance.**

&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) (i) Preserve, renew, and maintain in full force and effect its corporate or organizational existence and (ii) take all reasonable action to maintain all rights, privileges, and franchises necessary or desirable in the normal conduct of its business, except, in each case, as otherwise permitted 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;(b) Comply with all Contractual Obligations and Requirements of Law

**Section 5.05 Performance of Material Contracts.** Perform and observe all the terms and provisions of each Material Contract to be performed or observed by it, maintain each Material Contract in full force and effect, enforce each such Material Contract in accordance with its terms, take all such action to such end as may be from time to time requested by the Lender and, upon request of the Lender, make to each other party to each Material Contract such demands and requests for information and reports or for action as any Loan Party or any of its Subsidiaries is entitled to make under such Material Contract, except, in any case, where the failure to do so, either individually or in the aggregate, could not have a Material Adverse Effect.

**Section 5.06 Maintenance of Property; Insurance.**

&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) Maintain and preserve all of its property useful and necessary in its business in good working order and condition, ordinary wear and tear excepted.

&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) Maintain insurance with respect to its property and business with financially sound and reputable insurance companies that are not Affiliates of the Borrower, in such amounts and covering such risks as are usually insured against by similar companies engaged in the same or a similar business.

**Section 5.07 Inspection of Property; Books and Records; Discussions.**

&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) Keep proper books of records and accounts, in which full, true, and correct entries in all material respects and in any event in conformity with GAAP and all Requirements of Law shall be made of all dealings and transactions and assets in relation to its business and activities.

&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) Permit the Lender to visit and inspect any of its properties and examine and make abstracts from any of its books and records at any reasonable time and as often as may reasonably be desired/up to two times per year provided no Event of Default has occurred and is continuing/upon the occurrence and continuation of a Default or Event of Default and to discuss its business operations, properties, and financial and other condition with its officers and employees and its independent public accountants.

**Section 5.08 Environmental 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;(a) Obtain, comply and maintain in all material respects, and ensure the same in all material respects by all tenants and subtenants, if any, with all applicable Environmental Laws, any and all licenses, approvals, notifications, registrations, or permits required by applicable Environmental 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;(b) Conduct and complete all investigations, studies, sampling, and testing, and all remedial, removal, and other actions necessary to remove and clean up all Hazardous Materials from any of its properties required under Environmental Laws and promptly comply in all material respects with all lawful orders and directives of all Governmental Authorities regarding Environmental Laws.

**Section 5.09 Use of Proceeds.** Use the proceeds of the Loans to repay in full all outstanding indebtedness other than the Loan and for the general corporate purposes of the Loan Parties, in each case to the extent not prohibited under any Requirement of Law or the Loan Documents.

**Section 5.10 Additional Matters, Etc.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) execute and deliver to the Lender such supplements or amendments to the Security Agreement or such other documents as the Lender deems necessary or advisable to grant to the Lender a security interest in such property; 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;(ii) take all actions necessary or advisable to grant to the Lender a perfected first priority security interest in such property, including the filing of UCC-1 financing statements in such jurisdictions as may be required by the Security Agreement or by law or as may be requested by the 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;(b) With respect to any new Subsidiary created or acquired after the Closing Date by any Loan Party, promptly, and in any event within 30 days of the creation or acquisition of such 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;&nbsp;&nbsp;&nbsp;&nbsp;(i) execute and deliver to the Lender such supplements or amendments to any Loan Document as the Lender deems necessary or advisable to grant to the Lender a perfected first priority security interest in the Equity Interests of such new Subsidiary that are owned by any Loan 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) deliver to the Lender the certificates representing such Equity Interests, together with undated stock powers, in blank, executed by a duly authorized officer of the relevant Loan 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) cause such new Subsidiary (A) to become a party to the Security Agreement and (B) to take all actions necessary or desirable to grant to the Lender a perfected first priority security interest in the Collateral described in the Security Agreement with respect to such new Subsidiary, including the filing of UCC-1 financing statements in such jurisdictions as may be required by the Security Agreement or by law or as may be requested by the 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) if requested by the Lender, deliver to the Lender a secretary's certificate of such Subsidiary, with charter documents, by-laws, and appropriate resolutions attached; 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;(v) if requested by the Lender, deliver to the Lender legal opinions relating to the matters described above, which opinions shall be in form and substance, and from counsel, reasonably satisfactory to the Lender.

**Section 5.11 Further Assurances.** Promptly upon the request of the 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;(a) Correct any material defect or error that may be discovered in any Loan Document or in the execution, acknowledgement, filing, or recordation thereof.

&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) Do, execute, acknowledge, deliver, record, re-record, file, re-file, register, and re-register any and all such further acts, deeds, conveyances, pledge agreements, mortgages, deeds of trust, trust deeds, assignments, financing statements and continuations thereof, termination statements, notices of assignments, transfers, certificates, assurances, and other instruments as the Lender may reasonably require from time to time in order 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) carry out more effectively the purposes of the Loan 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to the fullest extent permitted by applicable law, subject any Loan Party's properties, assets, rights, or interests to the Liens now or hereafter intended to be covered by the Security Agreement and the other Loan 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) perfect and maintain the validity, effectiveness and priority of the Liens intended to be created under the Security Agreement and the other Loan Documents; 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;(iv) assure, convey, grant, assign, transfer, preserve, protect, and confirm more effectively to the Lender, the rights granted or now or hereafter intended to be granted to the Lender under any Loan Document or under any other instruments executed in connection with any Loan Document to which any Loan Party is or is to be a party.

**ARTICLE VI**

**NEGATIVE COVENANTS**

So long as the Loan or any other amounts payable to the Lender hereunder or under any other Loan Document have not been paid in full, the Borrower shall not, and shall not permit its Subsidiaries to:

**Section 6.01 Limitation on Debt.** Create, incur, assume, permit to exist, or otherwise become liable with respect to any Debt, except:

&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) Debt of any Loan Party existing or arising under this Agreement and any other Loan Document;

&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) Debt 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Borrower owed to any Subsidiary; 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;(ii) any Loan Party owed to the Borrower or any other 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;(c) Debt incurred to finance the acquisition, construction, or improvement of fixed or capital assets (including Capital Lease Obligations) secured by a Lien permitted under Section 6.02(g); provided that (i) such Debt is incurred simultaneously with such acquisition or the completion of such construction or improvement, (ii) such Debt when incurred shall not exceed the purchase price or the construction costs of the asset financed, and (iii) the aggregate principal amount of Debt permitted by this Section 6.01(c), shall not exceed $100,00 in the aggregate at any time outstanding; 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;(d) Debt of any Person that becomes a Subsidiary after the date hereof; provided that (i) such Debt exists at the time such Person becomes a Subsidiary and is not created in contemplation of, or in connection with, such Person becoming a Subsidiary and (ii) the aggregate principal amount of Debt permitted by this Section 6.01(d) shall not exceed $100,00 at any time outstanding.

**Section 6.02 Limitation on Liens.** Create, incur, assume, or permit to exist any Lien on any property or assets (including Equity Interests of any of its Subsidiaries) now owned or hereafter acquired by it or on any income or rights in respect of any thereof, except:

&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) Liens created pursuant to or arising under any Loan Document;

&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) Liens imposed by law for taxes, assessments, or governmental charges not yet due or which are being contested in good faith and by appropriate proceedings diligently conducted if adequate reserves with respect thereto are maintained in accordance with GAAP on the books of the applicable 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;(c) Carriers', warehousemen's, mechanics', materialmen's, repairmen's, and other similar Liens imposed by law, arising in the ordinary course of business, and securing obligations that are not overdue by more than 30 days or that are being contested in good faith and by appropriate proceedings diligently conducted;

&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) Liens arising solely by virtue of any statutory or common law provision relating to banker's liens rights or set-off or similar rights;

&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) Pledges and deposits and other Liens (i) made in the ordinary course of business in compliance with workers' compensation, unemployment insurance, and other social security laws or regulations and (ii) securing liability for reimbursement or indemnification obligations of (including obligations in respect of letters of credit or bank guarantees for the benefit of) insurance carriers providing property, casualty, or liability insurance to the Borrower or another Loan 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;(f) Liens (including deposits) to secure the performance of bids, tenders, trade contracts, leases, statutory obligations, surety and appeal bonds, performance bonds, and other obligations of like nature, in each case in the ordinary course of business;

&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) Easements, zoning restrictions, rights-of-way, minor defects or irregularities in title, and similar encumbrances on real property imposed by law or arising in the ordinary course of business which, in the aggregate, are not material in amount and which do not materially detract from the value of the affected property or interfere materially with the ordinary conduct of business of the Borrower 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;(h) Liens on fixed or capital assets acquired, constructed, or improved by the Borrower or any other Loan Party after the date hereof; provided that (i) such security interests secure Debt permitted by Section 6.01(c), (ii) such Liens and the Debt secured thereby are incurred simultaneously with such acquisition or the completion of such construction or improvement, (iii) such Liens shall not apply to any other property or assets of the Borrower or any other Loan Party, and (iv) the amount of Debt initially secured thereby is not more than 100% of the purchase price or construction or improvement cost of such fixed or capital asset;

&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 extent such transactions create a Lien thereunder, liens in favor of lessors securing operating leases or sale and leaseback transactions, in each case to the extent such operating leases or sale and leaseback transactions are permitted under the terms 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;(j) Any Lien existing on any property or asset prior to the acquisition thereof by the Borrower or any other Loan Party or any Lien existing on any property or asset of any Person that becomes a Subsidiary of the Borrower or any other Loan Party at the time such Person becomes a Subsidiary of the Borrower or other Loan Party; provided that (i) such Lien is not created in contemplation of, or in connection with, such acquisition or such Person becoming a Subsidiary, as the case may be, (ii) such Lien shall apply to the same category, type, and scope of assets, and (iii) such Lien shall secure only those obligations which it secures on the date of such acquisition or the date such Person becomes a Subsidiary, as the case may be, and any refinancing, refunding, extension, renewal, or replacement thereof that does not increase the outstanding principal amount thereof plus any accrued interest, premium, fee, and reasonable and documented out-of-pocket expenses payable in connection with any such refinancing, refunding, extension, renewal, or replacement;

&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) Liens upon assets of the Borrower or any of its Subsidiaries subject to Capitalized Lease Obligations to the extent such Capitalized Lease Obligations are permitted by Section 7.01; provided that (i) such Liens only serve to secure the payment of Debt arising under such Capitalized Lease Obligation and (ii) the Lien encumbering the asset giving rise to the Capitalized Lease Obligation does not encumber any other asset of the Borrower 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;(l) Liens arising from precautionary Uniform Commercial Code financing statement filings solely as a precautionary measure in connection with operating leases or consignment of goods; 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;(m) Any other Liens on property not otherwise permitted by this Section 6.02 so long as neither (i) the aggregate principal amount of the Debt and other obligations secured thereby nor (ii) the aggregate fair market value (determined as of the date such Lien is incurred) of the assets subject thereto exceeds $50,000 at any time outstanding.

**Section 6.03 Mergers; Nature of Business.**

&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) Merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it, or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto no Event of Default shall have occurred and be continuing (i) any Subsidiary of the Borrower that is a Loan Party may merge into the Borrower in a transaction in which the Borrower is the surviving corporation, (ii) any Loan Party (other than the Borrower) may merge into any other Loan Party in a transaction in which the surviving entity is a Loan Party, and (iii) any Subsidiary that is not a Loan Party may liquidate or dissolve if the Borrower determines in good faith that such liquidation or dissolution is in the best interests of the Borrower and is not materially disadvantageous to the 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;(b) Engage in any business other than businesses of the type conducted by the Borrower and its Subsidiaries on the date hereof and businesses reasonably related thereto.

**Section 6.04 Limitation on Investments.** Make any advance, loan, extension of credit (by way of guaranty or otherwise), or capital contribution to, or purchase, hold, or acquire any Equity Interests, bonds, notes, debentures, or other debt securities of, or any assets constituting a business unit of, or make any other investment in, any Person (all of the foregoing, **"Investments"),** except:

&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) Investments in Cash Equivalents, obligations of a credit quality and maturity comparable to that of the items referred to in clauses (a) through (e) of the definition of Cash Equivalents;

&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) Guarantees permitted by Section 7.01;

&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) Intercompany Investments by any Loan Party of, in, or to another Loan Party in the Borrower or any Person that, prior to such Investment, is a Loan 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;(d) Extensions of trade credit in the ordinary course of business (including any instrument evidencing the same and any instrument, security, or other asset acquired through bona fide collection efforts with respect to the same); and

**Section 6.05 Limitation on Dispositions.** Dispose of any of its property, whether now owned or hereafter acquired, or issue or sell any Equity Interests to any Person, except:

&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 sale or Disposition of machinery and equipment no longer used or useful in the business of any Loan 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;(b) The Disposition of obsolete or worn-out property in the ordinary course of business;

&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) The sale of inventory and immaterial assets and the sale or disposition of cash or Cash Equivalents, in each case, in the ordinary course of business;

&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) Dispositions of property to the Borrower or any other Loan 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;(e) The sale or issuance of any Loan Party's Equity Interests to any other Loan 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;(f) Dispositions resulting from any taking or condemnation of any Property of the Borrower or any Subsidiary by any Governmental Authority or any assets subject to a casualty;

&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) Any Disposition in connection with a sale and leaseback permitted pursuant to Section 7.06;

**Section 6.06 Limitation on Sales and Leasebacks.** Enter into any arrangement with any Person whereby such Loan Party shall sell or otherwise transfer any property owned by such Loan Party to (a) such Person and thereafter rent or lease such Property from such Person or (b) any other Person to whom funds have been or are to be advanced by such Person on the security of such Property or rental obligations of such Loan Party.

**Section 6.07 Limitation on Restricted Payments.** Declare or pay any dividend on, or make any payment on account of, or set apart assets for a sinking or other analogous fund for, the purchase, redemption, defeasance, retirement, or other acquisition of, any Equity Interests of the Borrower or any of its Subsidiaries, whether now or hereafter outstanding, or make any other distribution in respect thereof, either directly or indirectly, whether in cash or property or in obligations of the Borrower or any of its Subsidiaries (collectively, **"Restricted Payments"),** except 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;(a) A Subsidiary of the Borrower may make a Restricted Payment to the Borrower or any Loan Party and/or any other Persons owning Equity Interests in such Subsidiary, so long as such Restricted Payment is made to the Borrower, such Loan Party, and/or such other Persons ratably in accordance with their Equity Interests of the same class or series therein; provided that, such Restricted Payment to such other holders of Equity Interests in such Subsidiary is attributable only to cash flows of such 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;(b) The Borrower may declare and pay dividends and make other distributions and payments with respect to its Equity Interests if payable solely in its Equity Interests;

&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) The Borrower may purchase or otherwise acquire Equity Interests in any Subsidiary of the Borrower using additional shares of its Equity Interests; 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;(d) The Borrower may (i) make repurchases or redemptions of its Equity Interests (x) in connection with the exercise of stock options or restricted stock awards if such Equity Interests represent all or a portion of the exercise price thereof or (y) deemed to occur upon the withholding of a material portion of such Equity Interests issued to directors, officers, or employees of the Borrower or any Subsidiary under any stock option plan or other benefit plan or agreement for directors, officers, and employees of the Borrower and the Subsidiaries to cover withholding tax obligations of such Persons in respect of such issuance.

**Section 6.08 Limitation on Prepayments of Debt and Amendments of Debt Instruments.**

&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) Make or offer to make any optional or voluntary payment or prepayment on or redemption, defeasance, or purchase of any amounts (whether principal or interest) payable under any Debt which is contractually subordinated in right of payment to the obligations of the Loan Parties pursuant to the Loan 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;(b) Amend, modify, waive, or otherwise change, or consent or agree to any amendment, modification, waiver, or other change to any of the terms of any Debt that is contractually subordinated to the obligations of the Loan Parties pursuant to the Loan Documents, other than any amendment, modification, waiver, or other change which (i) would extend the maturity or reduce the amount of any payment of principal thereof or reduce the rate or extend any date for payment of interest thereon and (ii) does not involve the payment of a consent fee.

**Section 6.09 Limitation on Transactions With Affiliates.** Enter into or be a party to any transaction including any purchase, sale, lease, or exchange of property, the rendering of any service, or the payment of any management, advisory, or similar fees, with any Affiliate unless such transaction 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;(a) Otherwise permitted by the terms 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;(b) In the ordinary course of business of the Borrower or the relevant Subsidiary, as the case may be; 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;(c) On fair and reasonable terms no less favorable to the Borrower or the relevant Subsidiary, as the case may be, than those that would have been obtained in a comparable transaction on an arm's length basis from an unrelated Person.

**Section 6.10 Limitation on Restrictive Agreements.** Enter into or permit to exist or become effective any consensual encumbrance or restriction on the ability of any Subsidiary of the Borrower 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;(a) Make Restricted Payments in respect of any Equity Interests of such Subsidiary held by, or pay any Debt owed to, the Borrower or any other Subsidiary of the Borrower;

&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) Make loans or advances to, or Investments in, the Borrower or any other Subsidiary of the Borrower; 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;(c) Transfer any of its assets to the Borrower or any other Subsidiary of the Borrower, except for such encumbrances or restrictions (i) existing under the Loan Documents and (ii) with respect to a Subsidiary imposed pursuant to an agreement that has been entered into in connection with the Disposition of all or substantially all of the Equity Interests or assets of such Subsidiary.

**Section 6.11 Limitation on Amendments of Material Contracts.** Amend, supplement, or otherwise modify (pursuant to a waiver or otherwise):

&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) Its articles of incorporation, certificate of designation, operating agreement, bylaws, or other organizational document; 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;(b) The terms and conditions of any Material Contract;

in each case, in any respect materially adverse to the interests of the Lender, without the Lender's prior written consent.

**Section 6.12 Limitation on Transactions.**

Until December 31, 2023, not to, and to ensure that none of its officers, directors, equity holders, representatives, affiliates or agents, directly or indirectly:

&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) enter into any transaction with any party other than Lender relative to any acquisition, distribution, disposition, license, commercialization or sale of Borrower's Intellectual Property or any other material asset of Borrower or any equity interest in Borrower or any interests or other rights that would include or affect the business or operations of Borrower;

&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) solicit or encourage submission of any inquiry, proposal or offer from any other party relative to any potential acquisition, distribution, disposition, license, commercialization or sale of the Intellectual Property of Borrower or any other material asset of Borrower or any equity interest in Borrower or any interests or other rights that would include or affect the Intellectual Property of Borrower; 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;(c) provide information to any person other than Lender relating to any possible disposition or sale of the Intellectual Property of Lender or any other material asset of Borrower or any equity interest in Borrower or any interests or other rights that would include or affect the Intellectual property or the equity ownership of Borrower.

**ARTICLE VII**

**EVENTS OF DEFAULT AND REMEDIES**

**Section 7.01 Events of Default.** Each of the following events or conditions shall constitute an **"Event of Default"** (whether it shall be voluntary or involuntary or come about or be affected by any Requirement of Law or otherwise):

&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 Borrower fails to pay (x) any principal of any Loan when due, whether at stated maturity, by acceleration, by notice of voluntary prepayment, by mandatory prepayment, or otherwise or (y) any interest on any Loan, or any fee or other amount payable hereunder or under any other Loan Document when due and such failure remains unremedied for a period of two Business Days;

&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) any representation, warranty, certification, or other statement of fact made or deemed made by or on behalf of any Loan Party herein or in any other Loan Document or any amendment or modification hereof or thereof or waiver hereunder or thereunder or in any certificate, document, report, financial statement, or other document furnished by or on behalf of any Loan Party under or in connection with this Agreement or any other Loan Document, proves to have been false or misleading in any material respect on or as of the date made or deemed made;

&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) any Loan Party fails to perform or observe any covenant, term, condition, or agreement contained in Section 5.03, Section 5.04(a), Section 5.09, Section 5.10, or Article 7;

&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) any Loan Party fails to perform or observe any other covenant, term, condition, or agreement contained in this Agreement or any other Loan Document (other than as provided in subsections (a) through (c) of this Section 7.01) and such failure continues unremedied for a period of 30 days after written notice to the Borrower from the 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;(e) Any Loan 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) fails to pay any principal or interest in respect of any Debt (including any Guaranty Obligation, but excluding any Debt outstanding under this Agreement) when due and such failure continues after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) fails to perform or observe any other covenant, term, condition, or agreement relating to any such Debt or contained in any instrument or agreement evidencing or relating thereto, or any other event occurs or condition exists, the effect of which failure or other event or condition is to cause, or to permit the holder or beneficiary of such Debt (or a trustee or agent on behalf of such holder or beneficiary) to cause, with the giving of notice, if required, such Debt to become due prior to its stated maturity (or, in the case of any such Debt constituting a Guaranty Obligation, to become payable); or any such Debt is declared to be due and payable, or required to be prepaid or redeemed (other than by a regularly scheduled required prepayment or redemption or as a mandatory prepayment), purchased, or defeased, or an offer to prepay, redeem, purchase, or defease such Debt shall be required to be made, in each case prior to the stated maturity thereof;

&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) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Loan Party (x) commences any case, proceeding, or other action under any existing or future Debtor Relief Law, seeking (A) to have an order for relief entered with respect to it, or (B) to adjudicate it as bankrupt or insolvent, or (C) reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition, or other relief with respect to it or its debts, or (D) appointment of a receiver, trustee, custodian, conservator, or other similar official for it or for all or any substantial part of its assets or (y) makes a general assignment for the benefit of its 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) there is commenced against any Loan Party in a court of competent jurisdiction any case, proceeding, or other action of a nature referred to in clause (i) above which (x) results in the entry of an order for relief or any such adjudication or appointment or (y) remains undismissed, undischarged, unstayed, or unbonded for 30 days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) there is commenced against any Loan Party any case, proceeding, or other action seeking issuance of a warrant of attachment, execution, or similar process against all or any substantial part of its assets which results in the entry of an order for any such relief which has not been vacated, discharged, stayed, or bonded pending appeal within 30 days from the entry thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Loan Party is generally not, or is unable to, or admits in writing its inability to, pay its debts as they become due; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Loan Party takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts set forth in clause (i), (ii), or (iii) above;

&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) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Person shall engage in any "prohibited transaction" (as defined in §406 of ERISA or §4975 of the Code) involving any 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;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any failure to satisfy the minimum funding standard (within the meaning of Sections §412 or §430 of the Code or §302 of ERISA) shall exist with respect to any Plan, or any Lien in favor of the PBGC or a Plan shall arise on the assets of the Borrower or any ERISA Affiliate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) a Reportable Event shall occur with respect to, or proceedings shall commence to have a trustee appointed, or a trustee shall be appointed, to administer or to terminate, any Single Employer Plan, which Reportable Event or commencement of proceedings or appointment of trustee is, in the reasonable opinion of the Lender, reasonably likely to result in the termination of such Plan for purposes of Title IV of ERISA;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Single Employer Plan shall terminate for purposes of Title IV of ERISA; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) the Borrower or any ERISA Affiliate shall in the reasonable opinion of the Lender be likely to, incur any liability in connection with a withdrawal from, or the Insolvency or Reorganization of, a Multiemployer Plan;

and in each case in clauses (i) through (v) above, such event or condition, together with all other such events or conditions, if any, could, in the Lender's sole judgment, reasonably be expected to have a Material Adverse 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;(h) one or more judgments or decrees is entered against any Loan Party by a court of competent jurisdiction involving, in the aggregate, a liability in an amount in excess of $100,000;

&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) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 provision of any Loan Document ceases for any reason to be valid, binding, and in full force and effect, other than as expressly permitted hereunder or thereunder or solely as a result of the acts or omissions by the 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Loan Party contests in any manner the validity or enforceability of any provision of any Loan Document; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) any Loan Party denies that it has any or further liability or obligation under any provision of any Loan Document (other than as a result of repayment in full of the Obligations or purports to revoke, terminate, or rescind any provision of any Loan Document;

&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) any Change of Control occurs;

&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) there occurs in the reasonable judgment of the Lender a Material Adverse 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;(m) Any Loan Party breaches any provision of the Right of First Offer 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;(n) Borrower ceases to own the PFO and ASD closure devices or any intellectual property associated therewith or related thereto, in each case, free and clear of all liens, claims and encumbrances, or to own all rights to manufacture, commercialize, market, sell and distribute the PFO and ASD closure devices, free and clear of all liens, claims, encumbrances or contractual restriction.

**Section 7.02 Remedies Upon Event of Default.** If any Event of Default occurs and is continuing, then:

&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) if such event is an Event of Default specified in subsection (f) above with respect to the Borrower, the Loans (with accrued interest thereon) and all other amounts owing under this Agreement and the other Loan Documents shall immediately become due and payable;

&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) if such event is an Event of Default (other than an Event of Default under Section 7.01(f)), any or all of the following actions may be taken:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 Lender may, by notice to the Borrower, declare the Loan (with accrued interest thereon) and all other amounts owing under this Agreement and the other Loan Documents to be due and payable forthwith, whereupon the same shall immediately become due and payable; 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;(ii) the Lender may exercise all rights and remedies available to it under the Security Agreement and any other Loan Document.

**ARTICLE VIII**

**MISCELLANEOUS**

**Section 8.01 Notices.**

&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) Except in the case of notices and other communications expressly permitted to be given by telephone (or by e-mail as provided in paragraph (b) below), all notices and other communications provided for herein shall be made in writing and mailed by certified or registered mail, delivered by hand or overnight courier service, or sent by facsimile 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If to the Borrower or any other Loan Party, to it at 2975 Lone Oak Drive, Suite 140, Eagan, MN 55121 Attention of Michael Corcoran (email address: mcorcoran@encore-medical.com ; Telephone No. 651-797-0613).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) If to the Lender, to it at 1600 West Merit Parkway, South Jordan, Utah 84095, Attention of Brian Lloyd (email address: brian.11oyd@merit.com; Telephone No. (801) 253-1600).

Notices mailed by certified or registered mail or sent by hand or overnight courier service shall be deemed to have been given when received. Notices sent by facsimile during the recipient's normal business hours shall be deemed to have been given when sent (and if sent after normal business hours shall be deemed to have been given at the opening of the recipient's business on the next Business Day).

&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) Notices and other communications to the Lender hereunder may be delivered or furnished by electronic communications (including e-mail and internet or intranet websites) pursuant to procedures approved by the Lender. The Lender or the Borrower (on behalf of the Loan Parties) may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it; provided that, approval of such procedures may be limited to particular notices or communications.

&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) Unless the Lender specifies otherwise:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) notices and other communications sent by e-mail shall be deemed received upon the sender's receipt of an acknowledgment from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail, or other written acknowledgment); 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;(ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause (i) of notification that such notice or communication is available and identifying the website address therefor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;provided that, if such notice, e-mail or other communication is not sent during the recipient's normal business hours, such notice, e-mail, or communication shall be deemed to have been sent at the recipient's opening of business on the next Business Day.

&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) Either party hereto may change its address or facsimile number for notices and other communications hereunder by notice to the other party.

**Section 8.02 Amendments and Waivers.**

&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) No failure to exercise and no delay in exercising, on the part of the Lender, any right, remedy, power, or privilege hereunder or under the other Loan Documents shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power, or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power, or privilege. The rights, remedies, powers, and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers, and privileges provided by law. No waiver of any provision of any Loan Document or consent to any departure by any Loan Party therefrom shall in any event be effective unless the same shall comply with paragraph (b) of this Section, and then such waiver or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality of the foregoing, the making of a Loan shall not be construed as a waiver of any Default, regardless of whether the Lender may have had notice or knowledge of such Default at the time.

&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) Neither this Agreement nor any other Loan Document nor any provision hereof or thereof may be waived, amended, or modified except (i) in the case of this Agreement, pursuant to an agreement or agreements in writing entered into by the Borrower and the Lender or (ii) in the case of any other Loan Document, pursuant to an agreement or agreements in writing entered into by the Lender and the Loan Party or Loan Parties that are parties thereto.

**Section 8.03 Indemnity; Damage Waiver.**

&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 Borrower agrees to indemnify and hold harmless the Lender and each of its Related Parties (each, an **"Indemnified Party")** from and against, any and all claims, damages, losses, liabilities, and related expenses (including the fees, charges, and expenses of any counsel for any Indemnified Party, and shall indemnify and hold harmless each Indemnified Party from all allocated costs of internal counsel for such Indemnified Party), incurred by any Indemnified Party or asserted against any Indemnified Party by any Person (including the Borrower or any other Loan Party) other than such Indemnified Party and its Related Parties arising out of, in connection with, or by reason 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the execution or delivery of any Loan Document or any agreement or instrument contemplated in any Loan Document, the performance by the parties thereto of their respective obligations under any Loan Document, or the consummation of the transactions contemplated by the Loan 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Loan or the actual or proposed use of the proceeds therefrom;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 actual or alleged presence or release of Hazardous Materials on or from any property currently or formerly owned or operated by the Borrower or any of its Subsidiaries, or any Environmental Liability related to the Borrower or any of its Subsidiaries in any way; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) any actual or prospective claim, investigation, litigation, or proceeding relating to any of the foregoing, whether based on contract, tort, or any other theory, whether brought by a third party or by the Borrower or any other Loan Party, and regardless of whether any Indemnified Party is a party thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) any actual or alleged infringement or misappropriation of any Intellectual Property right of a third party asserted against Lender in relation to Borrower's Intellectual Property.

provided that, such indemnity shall not be available to any Indemnified Party to the extent that such claims, damages, losses, liabilities, or related expenses are determined by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful misconduct of such Indemnified 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;(b) The Borrower agrees, to the fullest extent permitted by applicable law, not to assert, and hereby waives, any claim against any Indemnified Party, on any theory of liability, for special, indirect, consequential, or punitive damages (including, without limitation, any loss of profits or anticipated savings), as opposed to actual or direct damages, resulting from this Agreement or any other Loan Document or arising out of such Indemnified Party's activities in connection herewith or therewith (whether before or after 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;(c) All amounts due under Section 8.03 shall be payable promptly.

&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 Borrower agrees that neither it nor any of its Subsidiaries will settle, compromise, or consent to the entry of any judgment in any pending or threatened claim, action, or proceeding in respect of which indemnification or contribution could be sought under Section 8.03 (whether or not any Indemnified Party is an actual or potential party to such claim, action, or proceeding) without the prior written consent of the applicable Indemnified Party, unless such settlement, compromise, or consent includes an unconditional release of such Indemnified Party from all liability arising out of such claim, action, or proceeding, which consent shall not be unreasonably withheld or delayed.

**Section 8.04 Successors and Assigns.**

&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 provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Lender (and any attempted assignment or transfer by the Borrower without such consent shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby and, to the extent expressly contemplated hereby, the Related Parties of the Lender) any legal or equitable right, remedy, or claim under or by reason 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;(b) The Lender may, at any time, without the consent of the Borrower, assign to one or more Eligible Assignees (as defined below) all or a portion of its rights and obligations under this Agreement (including all or a portion of the Loans at the time owing to it). For purposes of this Agreement, "**Eligible Assignee**" means any Person other than a natural Person that is (i) an Affiliate of the Lender, (ii) a commercial bank, insurance company, investment or mutual fund, or other Person that is an "accredited investor" (as defined in Regulation D under the Securities Act), or (iii) a corporate entity that possesses financial sophistication and standing similar to that of the Lender. Subject to notification of an assignment, the assignee shall be a party hereto and, to the extent of the interest assigned, have the rights and obligations of the Lender under this Agreement, and the Lender shall, to the extent of the interest assigned, be released from its obligations under this Agreement (and, in the case of an assignment covering all of the Lender's rights and obligations under this Agreement, the Lender shall cease to be a party hereto but shall continue to be entitled to the benefits of Section 8.03). The Borrower hereby agrees to execute any amendment and/or any other document that may be necessary to effectuate such an assignment, including an amendment to this Agreement to provide for multiple lenders and an administrative agent to act on behalf of such lenders. Any assignment or transfer by the Lender of rights or obligations under this Agreement that does not comply with this paragraph shall be treated for purposes of this Agreement as a sale by the Lender of a participation in such rights and obligations in accordance with paragraph (c) of this Section.

&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) The Lender may, at any time, without the consent of the Borrower, sell participations to one or more banks or other entities (each, a **"Participant")** in all or a portion of the Lender's rights and obligations under this Agreement (including all or a portion of the Loans owing to it); provided that (i) the Lender's obligations under this Agreement shall remain unchanged, (ii) the Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, and (iii) the Borrower shall continue to deal solely and directly with the Lender in connection with the Lender's rights and obligations under this Agreement. The Lender shall, acting solely for this purpose as an agent of the Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under the Loan Documents (the **"Participant Register");** provided that, the Lender shall have no obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in the Loans or other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that any Loan or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and the Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.

&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) To the extent permitted by law, each Participant also shall be entitled to the benefits of Section 8.08 as though it were the Lender.

**Section 8.05 Survival.** All covenants, agreements, representations, and warranties made by the Loan Parties in the Loan Documents and in the certificates or other instruments delivered in connection with or pursuant to this Agreement or any other Loan Document shall be considered to have been relied upon by the other parties hereto and shall survive the execution and delivery of the Loan Documents and the making of any Loans, regardless of any investigation made by any such other party or on its behalf and notwithstanding that the Lender may have notice or knowledge of any Event of Default or incorrect representation or warranty at the time any credit is extended hereunder, and shall continue in full force and effect as long as the principal of, or any accrued interest on, any Loan or any fee or any other amount payable under this Agreement is outstanding and unpaid. The provisions of **ARTICLE VIII** shall survive and remain in full force and effect regardless of the consummation of the transactions contemplated hereby, the repayment of the Loans or the termination of this Agreement or any provision hereof.

**Section 8.06 Counterparts; Integration; Effectiveness.**

&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) This Agreement and any amendments, waivers, consents, or supplements hereto may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Agreement, the other Loan Documents, and any separate letter agreements with respect to fees payable to the Lender constitute the entire contract among the parties with respect to the subject matter hereof and supersede all previous agreements and understandings, oral or written, with respect to the subject matter hereof. Except as provided in Section 3.01, this Agreement shall become effective when it shall have been executed by the Lender and when the Lender shall have received a counterpart hereof executed by the Borrower. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or in electronic ("pdf" or "tif") format shall be effective as delivery of a manually executed counterpart 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;(b) The words "execution," "signed," "signature," and words of similar import in any Loan Document shall be deemed to include electronic or digital signatures or electronic records, each of which shall be of the same effect, validity, and enforceability as manually executed signatures or a paper-based recordkeeping system, as the case may be, to the extent and as provided for under applicable law, including the Electronic Signatures in Global and National Commerce Act of 2000 (15 USC § 7001 et seq.), the Uniform Electronic Transactions Act (UETA), or any state law based on the UETA, including the New York Electronic Signatures and Records Act (N.Y. Tech. §§ 301 to 309.

**Section 8.07 Severability.** If any term or provision of any Loan Document is invalid, illegal, or unenforceable in any jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other term or provision thereof or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal, or unenforceable, the parties hereto shall negotiate in good faith to modify the applicable Loan Document so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

**Section 8.08 Right of Setoff.** If an Event of Default shall have occurred and be continuing, the Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, and without prior notice to the Borrower, any such notice being expressly waived by the Borrower, to set off and appropriate and apply any and all deposits (general or special, time or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing by the Lender or Affiliate to or for the credit or the account of the Borrower or any Loan Party against any and all of the obligations of the Borrower or such Loan Party now or hereafter existing under the Loan Documents to the Lender or its Affiliates, whether direct or indirect, absolute or contingent, matured or unmatured, and irrespective of whether or not the Lender or any Affiliate shall have made any demand under the Loan Documents and although such obligations of such Loan Party are owed to a branch, office, or Affiliate of the Lender different from the branch, office, or Affiliate holding such deposit or obligated on such indebtedness. The Lender agrees to notify the Borrower promptly after any such set off and appropriation and application; provided that the failure to give such notice shall not affect the validity of such set off and appropriation and application.

**Section 8.09 Governing Law; Jurisdiction; Consent to Service of Process.**

&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) This Agreement and the other Loan Documents and any claim, controversy, dispute, or cause of action (whether in contract or tort or otherwise) based upon, arising out of, or relating to this Agreement or any other Loan Document (except, as to any other Loan Document, as expressly set forth therein) and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the laws of the State of Utah, without regard to conflicts of laws principles.

&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) Each Loan Party irrevocably and unconditionally agrees that it will not commence any action, litigation, or proceeding of any kind whatsoever, whether in law or equity, or whether in contract or tort or otherwise, against the Lender or any of its Related Parties in any way relating to this Agreement or any other Loan Document or the transactions contemplated hereby or thereby, in any forum other than the courts of the State of Utah sitting in Utah County, and of the United States District Court of Utah, and any appellate court from any thereof, and each of the parties hereto irrevocably and unconditionally submits to the jurisdiction of such courts and agrees that any such action, litigation, or proceeding may be brought in any such Utah State court or, to the fullest extent permitted by applicable law, in such federal court. Each of the parties hereto agrees that a final judgment in any such action, litigation, or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing herein or in any other Loan Document shall affect any right that the Lender may otherwise have to bring any action or proceeding relating to this Agreement or any other Loan Document against any Loan Party or its properties in the courts of any jurisdiction.

&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) Each Loan Party irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement or any other Loan Document in any such court referred to in subsection (b) of this Section. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

&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) Each Loan Party irrevocably consents to the service of process in the manner provided for notices in Section 8.01 and agrees that nothing herein will affect the right of any party hereto to serve process in any other manner permitted by applicable law.

**Section 8.10 Waiver of Jury Trial.** EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY WHETHER BASED ON CONTRACT, TORT, OR ANY OTHER THEORY. EACH PARTY HERETO (A) CERTIFIES THAT NO AGENT, ATTORNEY, REPRESENTATIVE, OR ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF LITIGATION AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

**Section 8.11 Headings.** The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

**Section 8.12 Confidentiality.**

&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 Lender agrees to maintain the confidentiality of all non-public information received from the Borrower or any other Loan Party relating to the Borrower or its Subsidiaries or their respective businesses; provided that, in the case of information received from the Borrower or any Loan Party after the date hereof, such information is clearly identified at the time of delivery as being confidential information (the **"Information"),** except that Information may be disclosed:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 its Affiliates and its Related Parties in connection with the administration of this Agreement and the preservation, exercise, or enforcement of the rights of the Lender under this Agreement (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and instructed to keep such Information 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to the extent required or requested by any regulatory authority purporting to have jurisdiction over such Person or its Related Parties (including any self-regulatory authority);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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 the advice of its counsel, to the extent required by any Requirement of Law or regulations or by any subpoena, court order, or similar legal process;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) in connection with the exercise of any remedies hereunder or under any other Loan Document or any suit, action, or proceeding relating to this Agreement or any other Loan Document or the enforcement of its rights hereunder or thereunder;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&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) with the consent of the Borrower; 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) to the extent such Information (x) becomes publicly available other than as a result of a breach of this Section, or (y) is available to the Lender on a non-confidential basis prior to disclosure by the Borrower or any of its Subsidiaries, or (z) becomes available to the Lender or any of its Affiliates on a non-confidential basis from a source other than the Borrower or any other Loan 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;(b) Any Person required to maintain the confidentiality of Information as provided in this Section shall be considered to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own confidential information.

**Section 8.13 USA PATRIOT Act and Anti-Corruption Information.** The Lender hereby notifies each Loan Party that pursuant to the requirements of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L. 107-56, signed into law October 26, 2001) (the **"PATRIOT Act")** and 31 C.F.R. § 1010.230 (the "Beneficial Ownership Regulation"), it is required to obtain, verify, and record information that identifies each Loan Party, which information includes the name and address of each Loan Party and other information that will allow the Lender to identify such Loan Party in accordance with the PATRIOT Act and the Beneficial Ownership Regulation, and the Borrower agrees to provide, or cause the other Loan Parties to provide, such information from time to time to the Lender.

*[SIGNATURE PAGE FOLLOWS]*

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

---

| | |
|:---|:---|
| **Encore Medical, Inc.** | **Encore Medical, Inc.** |
| By | /s/ Michael Corcoran |
| Name: | Michael Corcoran |
| Title: | President & CEO |
| **Merit Medical Systems, Inc.** | **Merit Medical Systems, Inc.** |
| By | |
| Name: |  |
| Title: |  |

---

**EXHIBIT I - FORM OF PROMISSORY NOTE**

**<u>SECURED PROMISSORY NOTE</u>**

---

| | |
|:---|:---|
| **$1000000.00** | **Salt Lake City,** |
|  | **Utah** |
|  | **November 6,** |
|  | **2023** |

---

FOR VALUE RECEIVED, the undersigned, Encore Medical, Inc., a Minnesota corporation (the **"Borrower"**), promises to pay to the order of Merit Medical Systems, Inc., a Utah corporation, and its successors and assigns (the **"Lender"**), at 1600 West Merit Parkway, South Jordan, Utah 84095, or at such other place as may be designated in writing by the Lender, the principal sum of ONE MILLION DOLLARS ($1,000,000) or such sum as may be advanced and outstanding from time to time, in lawful money of the United States of America and in immediately available funds, on the dates and in the principal amounts provided in the Loan Agreement (as defined below), and to pay interest on the unpaid principal amount owing hereunder, at the rates and on the dates provided in the Loan Agreement.

This is the Promissory Note (the **"Promissory Note"**) referred to in that certain Loan Agreement dated as of the date hereof between the Borrower and the Lender (as amended, modified, supplemented or restated from time to time, the **"Loan Agreement"**) pursuant to which the Lender agreed to make a loan (the **"Loan"**) to the Borrower. Capitalized terms used herein, and not otherwise defined herein, have their respective meanings given them in the Loan Agreement.

Reference is made to the Loan Agreement for provisions for the prepayment and repayment hereof and the acceleration of the maturity hereof, as well as the obligation of the Borrower to pay all costs of collection. This Promissory Note is entitled to the benefits and security of the Loan Documents.

If: (a) the Borrower shall fail to pay when due any sums payable hereunder, subject to any applicable notice and cure periods as set forth in the Loan Agreement; or (b) any Event of Default occurs and is continuing under the Loan Agreement or any other Loan Document; <u>THEN</u> the Lender may, at its sole option, declare all sums owing under this Promissory Note immediately due and payable; <u>provided</u>, <u>however</u>, that if any document related to this Promissory Note provides for automatic acceleration of payment of sums owing hereunder, all sums owing hereunder shall be automatically due and payable in accordance with the terms of such document.

If any attorney is engaged by the Lender to enforce or defend any provision of this Promissory Note or any other Loan Document, or as a consequence of any Event of Default, with or without the filing of any legal action or proceeding, then the Borrower shall pay to the Lender immediately upon demand all reasonable attorneys' fees actually incurred, without reference to any statutory or other presumptions, and all costs incurred by the Lender in connection therewith, together with interest thereon from the date of such demand until paid at the rate of interest applicable to the principal balance owing hereunder as if such unpaid attorneys' fees and costs had been added to the principal.

Notwithstanding anything to the contrary contained herein or in the Loan Documents, the Borrower hereby waives: presentment; demand; notice of dishonor; notice of default or delinquency; notice of acceleration; notice of protest and nonpayment; notice of costs, expenses or losses and interest thereon; notice of late charges; and diligence in taking any action to collect any sums owing under this Promissory Note or in proceeding against any of the rights or interests in or to properties securing payment of this Promissory Note.

Time is of the essence with respect to every provision hereof.

This Promissory Note shall be governed by, and construed and enforced in accordance with the laws of the State of Utah, except to the extent preempted by federal laws. The Borrower and all persons and entities in any manner obligated to the Lender under this Promissory Note consent to the jurisdiction of any federal or state court within the State of Utah having proper venue and also consent to service of process by any means authorized by the laws of the State of Utah or federal law.

All notices or other communications required or permitted to be given pursuant to this Promissory Note shall be given to the Borrower or the Lender at the address and in the manner provided for in the Loan Agreement.

No previous waiver and no failure or delay by the Lender in acting with respect to the terms of this Promissory Note or any other Loan Document shall constitute a waiver of any breach, default, or failure of condition under this Promissory Note, any other Loan Document or the obligations secured thereby. A waiver of any term of this Promissory Note, any other Loan Document or of any of the obligations secured thereby must be made in writing and shall be limited to the express written terms of such waiver. In the event of any inconsistencies between the terms of this Promissory Note and the terms of any other document related to the loan evidenced by this Promissory Note, the terms of this Promissory Note shall prevail. The Loan Documents contain or expressly incorporate by reference the entire agreement of the parties with respect to the matters contemplated therein and supersede all prior negotiations or agreements, written or oral. The Loan Documents shall not be modified except by written instrument executed by all parties. Any reference to the Loan Documents includes any amendments, renewals or extensions now or hereafter approved by the Lender in writing.

*[Signatures commence on the following page.]*

Exhibit I - 2

IN WITNESS WHEREOF, the Borrower, intending to be legally bound, has duly executed and delivered this Secured Promissory Note as of the day and year first above written.

---

| | |
|:---|:---|
| **Encore Medical, Inc.** | **Encore Medical, Inc.** |
| By | /s/ Michael Corcoran |
| Name: Michael Corcoran | Name: Michael Corcoran |
| Title: President & CEO | Title: President & CEO |

---

Exhibit I - 3

**EXHIBIT II - RIGHT OF FIRST OFFER AGREEMENT**

THIS RIGHT OF FIRST OFFER AGREEMENT (this **"Agreement"**), is made as of November 6, 2023, by and between Encore Medical, Inc., a Minnesota corporation (the **"Borrower"**), and Merit Medical Systems, Inc., a Utah corporation (the **"Lender"**).

**<u>RECITALS</u>**

**WHEREAS,** the Borrower and the Lender are parties to that certain Loan Agreement of even date herewith (the **"Loan Agreement"**); and

**WHEREAS,** in order to induce the Lender to enter into the Loan Agreement, the Borrower agreed to grant the Lender the rights as described herein;

**NOW, THEREFORE,** the parties hereby agree as follows:

Article I. <u>Definitions.</u> For purposes of this Agreement:

**"Affiliate"** means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person, including without limitation any general partner, managing member, officer, director or trustee of such Person, or any venture capital fund or registered investment company now or hereafter existing that is controlled by one or more general partners, managing members or investment adviser of, or shares the same management company or investment adviser with, such Person.

**"New Securities"** means, collectively, equity securities of the Borrower, whether or not currently authorized, as well as rights, options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible or exchangeable into or exercisable for such equity securities.

**"Person"** means any individual, corporation, partnership, trust, limited liability company, association or other entity.

Article II. <u>Rights to Future Stock Issuances</u>.

Section 2.1 <u>Right of First Offer</u>. Subject to the terms and conditions of this Subsection 2.1 and applicable securities laws, if the Borrower proposes to offer or sell any New Securities, the Borrower shall first offer such New Securities to the 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower shall give notice (the **"Offer Notice"**) to the Lender, stating (i) its bona fide intention to offer such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any, upon which it proposes to offer such New 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) By notification to the Borrower within twenty (20) days after the Offer Notice is given, the Lender may elect to purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, all or any portion of such New Securities. The closing of any sale pursuant to this Subsection 2.1(b) shall occur within ninety (90) days of the date that the Offer Notice is given.

Exhibit II - 1

If all New Securities referred to in the Offer Notice are not elected to be purchased or acquired as provided in Subsection 2.1(b), the Borrower may, during the ninety (90) day period following the expiration of the period provided in Subsection 2.1(b), offer and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not less than, and upon terms no more favorable to the offeree than, those specified in the Offer Notice. If the Borrower does not enter into an agreement for the sale of the New Securities within such period, or if such agreement is not consummated within thirty (30) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless first reoffered to the Lender in accordance with this Subsection 2.1.

Section 2.2 <u>No Transfer of Intellectual Property</u>. Borrower agrees during the term hereof not to transfer any of its Intellectual Property to any Person without the Lender's consent, which consent may be withheld at Lender's discretion.

<u>Termination</u>. This Agreement shall continue in full force and effect until the later of (a) the third anniversary hereof and (b) two years after the repayment in full of all obligations under the Loan Documents.

Article III. <u>Miscellaneous</u>.

Section 3.01 <u>Successors and Assigns</u>. The rights under this Agreement may be assigned (but only with all related obligations) by the Lender without consent from the Borrower. The terms and conditions of this Agreement inure to the benefit of and are binding upon the respective successors and permitted assignees of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assignees any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein.

Section 3.02 <u>Governing Law</u>. This Agreement shall be governed by the internal law of the State of Utah, without regard to conflict of law principles that would result in the application of any law other than the law of the State of Utah.

Section 3.03 <u>Counterparts</u>. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but 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.

Section 3.04 <u>Titles and Subtitles</u>. The titles and subtitles used in this Agreement are for convenience only and are not to be considered in construing or interpreting this Agreement.

Exhibit II - 2

Section 3.05 <u>Notices</u>.

All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or (i) personal delivery to the party to be notified; (ii) when sent, if sent by electronic mail or facsimile during the recipient's normal business hours, and if not sent during normal business hours, then on the recipient's next business day; (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one (1) business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next-day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their addresses as set forth in the Loan Agreement or to such email address, facsimile number, or address as subsequently modified by written notice given in accordance with this <u>Subsection</u>.

Section 3.06 <u>Amendments and Waivers</u>. Any term of this Agreement may be amended, modified or terminated and the observance of any term of this Agreement may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written consent of the Lender.

Section 3.07 <u>Severability</u>. In case any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable to the maximum extent permitted by law.

Section 3.08 <u>Entire Agreement</u>. This Agreement (including any Schedules and Exhibits hereto) and the other Loan Documents constitute the full and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled.

Section 3.09 <u>Dispute Resolution</u>. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Utah and to the jurisdiction of the United States District Court for the District of Utah for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of Utah or the United States District Court for the District of Utah, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court.

Exhibit II - 3

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 OTHER TRANSACTION DOCUMENTS, THE SECURITIES 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 TRANSACTION, 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.

Each party will bear its own costs in respect of any disputes arising under this Agreement. The prevailing party shall be entitled to reasonable attorney's fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled. Each of the parties to this Agreement consents to personal jurisdiction for any equitable action sought in the U.S. District Court for the District of Utah or any court of the State of Utah having subject matter jurisdiction.

Section 3.10 <u>Delays or Omissions</u>. No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power, or remedy of such nonbreaching or nondefaulting party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default, or to 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. All remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

1. *[Remainder of Page Intentionally Left Blank]*

 

Exhibit II - 4

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **Encore Medical, Inc.** | **Encore Medical, Inc.** |
| By | /s/ Michael Corcoran |
| Name: Michael Corcoran | Name: Michael Corcoran |
| Title: President & CEO | Title: President & CEO |
| **Merit Medical Systems, Inc.** | **Merit Medical Systems, Inc.** |
| By | |
| Name: | Name: |
| Title: | Title: |

---

Exhibit II - 5

**<u>Schedule 4.08</u>**

**<u>(A) SCHEDULE OF LEINS</u>**

**<u>None applicable.</u>**

**<u>(B) LIST OF REAL PROPERTY</u>**

**<u>None applicable.</u>**

**<u>(C) LEASES OF REAL PROPERTY AS LESSEE</u>**

**<u>None applicable.</u>**

**<u>(D) LEASES OF REAL PROPERTY AS LESSER</u>**

**<u>None applicable.</u>**

Schedule 4.08 - 1

**<u>Schedule 4.10</u>**

**<u>LIST OF INSURANCE POLICIES</u>**

**1. Pharmacists Mutual Policy #0100060543**

**2. MedMarc Policy#N23MN380005**

Schedule 4.10 - 1

**<u>Schedule 4.11</u>**

**<u>LIST OF MATERIAL CONTRACTS</u>**

**None applicable.**

Schedule 4.11 - 1

**<u>Schedule 4.17</u>**

**<u>(A) OUTSTANDING EQUITY INTEREST OWNERSHIP IN BORROWER</u>**

***<u>[To be inserted]</u>***

Schedule 4.17 - 1

**<u>(B) EQUITY INVESTMENTS</u>**

**None applicable.**

Schedule 4.17 - 1

**THIS RIGHT OF FIRST OFFER AGREEMENT** (this **"Agreement"**), is made as of November 6, 2023, by and between Encore Medical, Inc., a Minnesota corporation (the **"Borrower"**), and Merit Medical Systems, Inc., a Utah corporation (the **"Lender"**).

**<u>RECITALS</u>**

**WHEREAS,** the Borrower and the Lender are parties to that certain Loan Agreement of even date herewith (the **"Loan Agreement"**); and

**WHEREAS,** in order to induce the Lender to enter into the Loan Agreement, the Borrower agreed to grant the Lender the rights as described herein;

**NOW, THEREFORE,** the parties hereby agree as follows:

Article I. <u>Definitions</u>. For purposes of this Agreement:

**"Affiliate"** means, with respect to any specified Person, any other Person who, directly or indirectly, controls, is controlled by, or is under common control with such Person, including without limitation any general partner, managing member, officer, director or trustee of such Person, or any venture capital fund or registered investment company now or hereafter existing that is controlled by one or more general partners, managing members or investment adviser of, or shares the same management company or investment adviser with, such Person.

**"New Securities"** means, collectively, equity securities of the Borrower, whether or not currently authorized, as well as rights, options, or warrants to purchase such equity securities, or securities of any type whatsoever that are, or may become, convertible or exchangeable into or exercisable for such equity securities.

**"Person"** means any individual, corporation, partnership, trust, limited liability company, association or other entity.

Article II. <u>Rights to Future Stock Issuances</u>.

Section 2.1 <u>Right of First Offer</u>. Subject to the terms and conditions of this Subsection 2.1 and applicable securities laws, if the Borrower proposes to offer or sell any New Securities, the Borrower shall first offer such New Securities to the 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower shall give notice (the **"Offer Notice"**) to the Lender, stating (i) its bona fide intention to offer such New Securities, (ii) the number of such New Securities to be offered, and (iii) the price and terms, if any, upon which it proposes to offer such New 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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) By notification to the Borrower within twenty (20) days after the Offer Notice is given, the Lender may elect to purchase or otherwise acquire, at the price and on the terms specified in the Offer Notice, all or any portion of such New Securities. The closing of any sale pursuant to this Subsection 2.1(b) shall occur within ninety (90) days of the date that the Offer Notice is given.

Exhibit II - 1

If all New Securities referred to in the Offer Notice are not elected to be purchased or acquired as provided in Subsection 2.1(b), the Borrower may, during the ninety (90) day period following the expiration of the period provided in Subsection 2.1(b), offer and sell the remaining unsubscribed portion of such New Securities to any Person or Persons at a price not less than, and upon terms no more favorable to the offeree than, those specified in the Offer Notice. If the Borrower does not enter into an agreement for the sale of the New Securities within such period, or if such agreement is not consummated within thirty (30) days of the execution thereof, the right provided hereunder shall be deemed to be revived and such New Securities shall not be offered unless first reoffered to the Lender in accordance with this Subsection 2.1.

Section 2.2 <u>No Transfer of Intellectual Property</u>. Borrower agrees during the term hereof not to transfer any of its Intellectual Property to any Person without the Lender's consent, which consent may be withheld at Lender's discretion.

<u>Termination</u>. This Agreement shall continue in full force and effect until the later of (a) the third anniversary hereof and (b) two years after the repayment in full of all obligations under the Loan Documents.

Article III. <u>Miscellaneous</u>.

Section 3.01 <u>Successors and Assigns</u>. The rights under this Agreement may be assigned (but only with all related obligations) by the Lender without consent from the Borrower. The terms and conditions of this Agreement inure to the benefit of and are binding upon the respective successors and permitted assignees of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assignees any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided herein.

Section 3.02 <u>Governing Law.</u> This Agreement shall be governed by the internal law of the State of Utah, without regard to conflict of law principles that would result in the application of any law other than the law of the State of Utah.

Section 3.03 <u>Counterparts</u>. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but 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.

Section 3.04 <u>Titles and Subtitles</u>. The titles and subtitles used in this Agreement are for convenience only and are not to be considered in construing or interpreting this Agreement.

Section 3.05 <u>Notices</u>.

All notices and other communications given or made pursuant to this Agreement shall be in writing and shall be deemed effectively given upon the earlier of actual receipt or (i) personal delivery to the party to be notified; (ii) when sent, if sent by electronic mail or facsimile during the recipient's normal business hours, and if not sent during normal business hours, then on the recipient's next business day; (iii) five (5) days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) one (1) business day after the business day of deposit with a nationally recognized overnight courier, freight prepaid, specifying next-day delivery, with written verification of receipt. All communications shall be sent to the respective parties at their addresses as set forth in the Loan Agreement or to such email address, facsimile number, or address as subsequently modified by written notice given in accordance with this <u>Subsection</u>.

Section 3.06 <u>Amendments and Waivers</u>. Any term of this Agreement may be amended, modified or terminated and the observance of any term of this Agreement may be waived (either generally or in a particular instance, and either retroactively or prospectively) only with the written consent of the Lender.

Section 3.07 <u>Severability</u>. In case any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and such invalid, illegal, or unenforceable provision shall be reformed and construed so that it will be valid, legal, and enforceable to the maximum extent permitted by law.

Section 3.08 <u>Entire Agreement</u>. This Agreement (including any Schedules and Exhibits hereto) and the other Loan Documents constitute the full and entire understanding and agreement among the parties with respect to the subject matter hereof, and any other written or oral agreement relating to the subject matter hereof existing between the parties is expressly canceled.

Section 3.09 <u>Dispute Resolution</u>. The parties (a) hereby irrevocably and unconditionally submit to the jurisdiction of the state courts of Utah and to the jurisdiction of the United States District Court for the District of Utah for the purpose of any suit, action or other proceeding arising out of or based upon this Agreement, (b) agree not to commence any suit, action or other proceeding arising out of or based upon this Agreement except in the state courts of Utah or the United States District Court for the District of Utah, and (c) hereby waive, and agree not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above-named courts, that its property is exempt or immune from attachment or execution, that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court.

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 OTHER TRANSACTION DOCUMENTS, THE SECURITIES 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 TRANSACTION, 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.

Each party will bear its own costs in respect of any disputes arising under this Agreement. The prevailing party shall be entitled to reasonable attorney's fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled. Each of the parties to this Agreement consents to personal jurisdiction for any equitable action sought in the U.S. District Court for the District of Utah or any court of the State of Utah having subject matter jurisdiction.

Section 3.10 <u>Delays or Omissions</u>. No delay or omission to exercise any right, power, or remedy accruing to any party under this Agreement, upon any breach or default of any other party under this Agreement, shall impair any such right, power, or remedy of such nonbreaching or nondefaulting party, nor shall it be construed to be a waiver of or acquiescence to any such breach or default, or to 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. All remedies, whether under this Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

1. *[Remainder of Page Intentionally Left Blank]*

IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

---

| | |
|:---|:---|
| **Encore Medical, Inc.** | **Encore Medical, Inc.** |
| By | /s/ Michael Corcoran |
| Name: Michael Corcoran | Name: Michael Corcoran |
| Title: President & CEO | Title: President & CEO |
| **Merit Medical Systems, Inc.** | **Merit Medical Systems, Inc.** |
| By | |
| Name: | Name: |
| Title: | Title: |

---

## Exhibit 10.4

**Exhibit 10.4(a)**

ENCORE MEDICAL, INC.

2018 STOCK INCENTIVE PLAN

<u>**TABLE OF CONTENTS**</u>

---

| | |
|:---|:---|
| SECTION 1. <u>General Purpose of Plan; Definitions</u> | pg. 03 |
| SECTION 2. <u>Administration</u> | pg. 05 |
| SECTION 3. <u>Stock Subject to Plan</u> | pg. 06 |
| SECTION 4. <u>Stock Options</u> | pg, 06 |
| SECTION 5. <u>Stock Appreciation Rights</u> | pg. 10 |
| SECTION 6. <u>Restricted Stock</u> | pg. 10 |
| SECTION 7. <u>Deferred Stock Awards</u> | pg. 12 |
| SECTION 8. <u>Target Grant Program</u> | pg. 13 |
| SECTION 9. <u>Transfer, Leave of Absence, etc</u> | pg. 15 |
| SECTION 10. <u>Amendments and Termination</u> | pg. 15 |
| SECTION 11. <u>Unfunded Status of Plan</u> | pg. 16 |
| SECTION 12. <u>General Provisions</u> | pg. 16 |
| SECTION 13. <u>Effective Date of Plan</u> | pg. 17 |
| <u>EXHIBIT. Form of Stock Option Agreement</u> | pg. 18 |

---

SECTION 1. <u>General Purpose of Plan; Definitions</u>.

The name of this plan is the Encore Medical, Inc. 2018 Stock Incentive Plan (the "Plan"). The purpose of the Plan is to enable Encore Medical, Inc. (the "Company") to retain and attract executives and other key employees, consultants and directors who contribute to the Company's success by their ability, ingenuity and industry, and to enable such individuals to participate in the long-term success and growth of the Company by giving them a proprietary interest in the Company.

For purposes of the Plan, the following terms shall be defined as set forth below:

&nbsp;&nbsp;&nbsp;&nbsp;a) "Board" means
 the Board of Directors of the Company .

&nbsp;&nbsp;&nbsp;&nbsp;b) "Cause" means
 a felony conviction of a participant or the failure of a participant to contest prosecution
 for a felony, or a participant's willful misconduct or dishonesty , any of which is directly and materially
 harmful to the business or reputation of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;c) Code" means the
 Internal Revenue Code of 1986, as amended.

&nbsp;&nbsp;&nbsp;&nbsp;d) "Committee"
 means a Committee established by the Board to admin i ster
 the Plan . If,
 at any time no Committee shall be in office, then the functions of the Committee shall be
 exercised by the Board.

&nbsp;&nbsp;&nbsp;&nbsp;e) "Company"
 means Encore Medical, Inc., a corporation organized under the laws of the State of Minnesota
 (or any successor corporation) .

&nbsp;&nbsp;&nbsp;&nbsp;f) "Consultant"
 means any person, including an advisor, engaged by the Company or a Parent Corporation or
 a Subsidiary of the Company to render services and who is compensated for such services and
 who is not an employee of the Company or any Parent Corporation or Subsidiary of the Company.
 A director who is not an employee may serve as a Consultant.

&nbsp;&nbsp;&nbsp;&nbsp;g) "Deferred Stock"
 means an award made pursuant to Section 7 below of the right to receive Stock
 at the end of a specified deferral period.

&nbsp;&nbsp;&nbsp;&nbsp;h) "D i sability"
 means permanent and total disability as determined by the Committee .

&nbsp;&nbsp;&nbsp;&nbsp;i) "Early Retirement"
 means retirement, with consent of the Committee at the time of retirement, from active employment
 with the Company and any Subsidiary or Parent Corporation of the Company .

&nbsp;&nbsp;&nbsp;&nbsp;j) "Fair Market Value"
 means the value of the Stock on a given date as determined by the Committee in accordance
 with Section 422(e)(7) of the Code and any appl i cable
 Treasury Department regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;k) "Incentive Stock
 Option" means any Stock Option intended to be and designated as an "Incentive Stock
 Option" within the meaning of Section 422 of the Code .

&nbsp;&nbsp;&nbsp;&nbsp;l) "Non-Employee
 Director" means a "Non-Employee Director" within the meaning of Rule 16b-3(b)(3) under
 the Securities Exchange Act of 1934.

&nbsp;&nbsp;&nbsp;&nbsp;m) "Non-Qualified
 Stock Option" means any Stock Option that is not an Incentive Stock Option and is intended
 to be and is designated as a "Non-Qualified Stock Option."

&nbsp;&nbsp;&nbsp;&nbsp;n) "Normal Retirement"
 means retirement from active employment with the Company and any Subsidiary or Parent Corporation
 of the Company on or after age 65.

&nbsp;&nbsp;&nbsp;&nbsp;o) "Outside Director"
 means a Director who : (a) i s
 not a current employee of the Company or any member of an affiliated group which includes
 the Company; (b) is not a former employee of the Company who receives compensation for
 prior services (other than benefits under a tax-qualified retirement plan) during the taxable
 year; (e) has not been an officer of the Company; (d) does not receive remuneration
 from the Company, either directly or indirectly, in any capacity other than as a director,
 except as otherwise permitted under Code Section 162(m) and regulations thereunder.
 For this purpose , remuneration
 includes any payment in exchange for good or services. This definition shall be further governed
 by the provisions of Code Section l 62(m) and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;p) "Restricted Stock"
 means an award of shares of Stock that are subject to restrictions under Section 6 below.

&nbsp;&nbsp;&nbsp;&nbsp;q) "Retirement"
 means Normal Retirement or Early Retirement.

&nbsp;&nbsp;&nbsp;&nbsp;r) "Stock" means
 the Common Stock, $.01 par value per share, of the Company .

&nbsp;&nbsp;&nbsp;&nbsp;s) "Stock Appreciation
 Right" means the right pursuant to an award granted under Section 5 below to surrender
 to the Company all or a portion of a Stock Option in exchange for an amount equal to the
 difference between (i) the Fair Market Value, as of the date such Stock Option or such
 portion thereof is surrendered, of the shares of Stock covered by such Stock Option or such
 portion thereof, and (ii) the aggregate exercise price of such Stock Option or such
 portion thereof.

&nbsp;&nbsp;&nbsp;&nbsp;t) "Stock Option"
 means any option to purchase shares of Stock granted pursuant to Section 4 below.

SECTION 2. <u>Administration</u>.

The Plan shall be administered by the Committee.

The Committee shall have the power and authority to grant to eligible persons, pursuant to the terms of the Plan: (i) Stock Options, (ii) Stock Appreciation Rights, (iii) Restricted Stock, or (iv) Deferred Stock awards.

In particular, the Committee shall have the authority:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) to
 select the officers, other key employees, consultants and directors of the Company or its
 Subsidiaries, to whom Stock Options, Stock Appreciation Rights, Restricted Stock and/or Deferred
 Stock awards may from time to time be granted hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) to
 determine whether and to what extent Incentive Stock Options, Non-Qualified Stock Options,
 Stock Appreciation Rights, Restricted Stock or Deferred Stock awards, or a combination of
 the foregoing , are
 to be granted hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) to
 determine the number of shares of stock to be covered by each such award granted hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to
 determine the terms and conditions, not inconsistent with the terms of the Plan, of any award
 granted hereunder (including, but not limited to, any restriction on any grant of a Stock
 Option, Restricted Stock or other award and/or the shares of Stock relating thereto), and
 to amend such terms and conditions (including, but not limited to, any amendment which accelerates
 the vesting of any award); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) to
 determine whether, to what extent and under what circumstances Stock and other amounts payable
 with respect to an award under this Plan shall be deferred either automatically or at the
 election of the participant.

The Committee shall have the authority to adopt, alter and repeal such administrative rules, guidelines and practices governing the Plan as it shall, from time to time, deem advisable; to interpret the terms and provisions of the Plan and any award issued under the Plan (and any agreements relating thereto); and to otherwise supervise the administration of the Plan. The Committee may delegate its authority to officers of the Company for the purpose of selecting employees who are not officers of the Company for purposes of (i) above.

All decisions made by the Committee pursuant to the provisions of the Plan shall be final and binding on all persons, including the Company and Plan participants.

SECTION 3. <u>Stock Subject to Plan</u>.

The total number of shares of common stock reserved and available for distribution under the Plan shall be 500,000 shares. Such shares shall consist, in whole or in part of authorized and unissued shares. The number of shares reserved for issuance pursuant to awards granted under the Plan shall be increased each time, commencing after December 31, 2018, that the number of shares available for grant under the Plan shall have been fully granted and be no longer available (the "Reset Date"). On each Reset Date, the number of shares reserved for issuance under the Plan shall be increased to an amount equal to 10% of the total number of shares of common stock outstanding on such date. For purposes of this Section 3, the number of shares reserved for issuance under the Plan shall be the aggregate of the number of shares reserved for issuance pursuant to outstanding but unexercised grants and the number of shares reserved for issuance that are not subject to such award grants.

Subject to paragraph (b)(iv) of Section 6 below, if any shares that have been optioned ceased to be subject to Options, or if any shares subject to any Restricted Stock or Deferred Stock award granted hereunder are forfeited or such award otherwise terminates without shares being issued therefore, such shares shall again be available for distribution in connection with future awards under the Plan.

In the event of any merger, reorganization, consolidation, recapitalization, stock dividend, other change in corporate structure affecting the Stock, or spin-off or other distribution of assets to shareholders, such substitution or adjustment shall be made in the aggregate number of shares reserved for issuance under the Plan, in the number and option price of shares subject to outstanding options granted under the Plan, and in the number of shares subject to Restricted Stock or Deferred Stock awards granted under the Plan as may be determined to be appropriate and equitable by the Committee, in its sole discretion, provided that the number of shares subject to any award shall always be a whole number.

SECTION 4. <u>Stock Options</u>.

Any Stock Option granted under the Plan shall be in such form as the Committee may from time to time approve.

The Stock Options granted under the Plan may be of two types: (i) Incentive Stock Options and (ii) Non-Qualified Stock Options. No Incentive Stock Options shall be granted under the Plan after the tenth anniversary of the date this Plan is adopted by the Company's Board of Directors.

The Committee shall have the authority to grant any optionee Incentive Stock Options, Non- Qualified Stock Options, or both types of options (in each case with or without Stock Appreciation Rights). To the extent that any option does not qualify as an Incentive Stock Option, it shall constitute a separate Non-Qualified Stock Option.

Anything in the Plan to the contrary notwithstanding, no term of this Plan relating to Incentive Stock Options shall be interpreted, amended or altered, nor shall any discretion or authority granted under the Plan be so exercised, so as to disqualify either the Plan or any Incentive Stock Option under Section 422 of the Code. The preceding sentence shall not preclude any modification or amendment to an outstanding Incentive Stock Option, whether or not such modification or amendment results in disqualification of such Option as an Incentive Stock Option, provided the optionee consents in writing to the modification or amendment.

Options granted under the Plan shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee shall deem desirable:

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Option Price</u>.
 The option price per share of Stock purchasable under a Stock Option shall be determined
 by the Committee at the time of grant. In no event shall the option price per share of Stock
 purchasable under an Incentive Stock Option be less than 100% of the Fair Market Value of
 the Stock on the date of the grant of the Stock Option. If an employee owns or is deemed
 to own (by reason of the attribution rules applicable under Section 424(d) of
 the Code) more than 10% of the combined voting power of all classes of stock of the Company
 and an Incentive Stock Option is granted to such employee, the option price shall be no less
 than 110% of the Fair Market Value of the Stock on the date the option is granted.

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Option Term</u>.
 The term of each Stock Option shall be fixed by the Committee , but no Incentive Stock Option shall
 be exercisable more than ten years after the date the option is granted. If an employee owns
 or is deemed to own (by reason of the attribution rules of Section 424(d) of
 the Code) more than 10% of the combined voting power of all classes of stock of the Company
 and an Incentive Stock Option is granted to such employee, the term of such option shall
 be no more than five years from the date of grant.

&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Exercisability</u>.
 Stock Options shall be exercisable at such time or times as determined by the Committee at
 or after grant. If the Committee provides , in its discretion , that any opt i on
 is exercisable only in installments , the Committee may waive such installment
 exercise provisions at any time, provided, however, that upon the Company becoming subject
 to the requirements of Section 16 of the Securities Exchange Act of 1934, as amended , a Stock Option granted to an officer , director or 10% shareholder of the Company
 shall not be exercisable for a period of six (6) months after the date of grant <u>unless</u> the Stock Option has been approved by the Board, the Committee or shareholders of the Company.
 Notwithstanding anything contained in the Plan to the contrary, the Committee may, in its
 discretion, extend or vary the term of any Stock Option or any installment thereof, whether
 or not the optionee is then employed by the Company, if such action is deemed to be in the
 best interests of the Company .

&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Method of Exercise.</u> Stock Options may be exercised in whole or in part at any time during the option period by
 giving written notice of exercise to the Company specifying the number of shares to be purchased.
 Such notice shall be accompanied by payment in full of the purchase price, either by certified
 or bank check, or by any other form of legal consideration deemed sufficient by the Committee
 and consistent with the Plan's purpose and applicable law, including promissory notes or
 a properly executed exercise notice together with irrevocable instructions to a broker acceptable
 to the Company to promptly deliver to the Company the amount of sale or loan proceeds to
 pay the exercise price. As determined by the Committee at the time of grant or exercise,
 in its sole discretion, payment in full or in part may also be made in the form of Stock
 already owned by the optionee that is not Restricted Stock (which in the case of Stock acquired
 upon exercise of an option have been owned for more than six months on the date of surrender)(based
 on the Fair Market Value of the Stock on the date immediately preceding the date the option
 is exercised, as determined by the Committee), provided, however, that, in the case of an
 Incentive Stock Option, the right to make a payment in the form of already owned shares may
 be authorized only at the time the option is granted . No shares of Stock shall be issued until
 full payment therefor has been made. An optionee shall generally have the rights to dividends
 and other rights of a shareholder with respect to shares subject to the option when the optionee
 has given written notice of exercise, has paid in full for such shares and, if requested,
 has given the representation described in paragraph (a) of Section 11.

&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Non-transferability of Options</u>. No
 Stock Option shall be transferable by the optionee otherwise than by will or by the laws
 of descent and distribution , and
 all Stock Options shall be exercisable, during the optionee's lifetime, only by the optionee.

&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Termination by Death</u>. If an optionee's employment by the Company terminates by reason of death, the
 Stock Option may thereafter be immediately exercised, to the extent then exercisable (or
 on such accelerated basis as the Committee shall determine at or after grant), by the legal
 representative of the estate or by the legatee of the optionee under the will of the optionee,
 for a period of one year (or such shorter period as the Committee shall specify at grant)
 from the date of such death or until the expiration of the stated term of the option, whichever
 period is shorter.

&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Termination by Reason of Disability</u>. If an optionee's employment by the Company terminates by reason
 of Disability, any Stock Option held by such optionee may thereafter be exercised, to the
 extent it was exercisable at the time of termination due to Disability (or on such accelerated
 basis as the Committee shall determine at or after grant), for a period of one year (or such
 shorter period as the Committee shall specify at grant) from the date of such termination
 of employment or the expiration of the stated term of the option, whichever period is the
 shorter . In
 the event of termination of employment by reason of Disability, if an Incentive Stock Option
 is exercised after the expiration of the exercise periods that apply for purposes of Section 422
 of the Code, the option will thereafter be treated as a Non-Qualified Stock Option .

&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Termination by Reason of Retirement</u>. If an optionee's employment by the Company terminates by reason
 of Retirement, any Stock Option held by such optionee may thereafter be exercised to the
 extent it was exercisable at the time of such Retirement, but may not be exercised after
 three months (or such longer period as the Committee shall specify at Retirement)from the
 date of such termination of employment or the expiration of the stated term of the option,
 whichever period is the shorter . In
 the event of termination of employment by reason of Retirement, if an Incentive Stock Option
 is exercised after the expiration of the exercise periods that apply for purposes of Section 422
 of the Code, the option will thereafter be treated as a Non-Qualified Stock Option.

&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Other Termination</u>.
 Unless otherwise determined by the Committee, if an optionee's employment by the Company
 terminates for any reason other than death, D i sability
 or Retirement, the Stock Option shall thereupon terminate, except that the option may be
 exercised to the extent it was exercisable at such termination for the lesser of three months
 (or such shorter period as the Committee shall specify at grant) or the balance of the option's
 term, provided , however,
 that if the optionee's employment is terminated for Cause , all rights under the Stock Option shall
 terminate and expire upon such termination .

&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Annual Limit on Incentive Stock Options</u>. The
 aggregate Fair Market Value (determined as of the time the Option is granted) of the Common
 Stock with respect to which an Incentive Stock Option under this Plan is exercisable for
 the first time by an optionee during any calendar year shall not exceed $200 , 000 .

Notwithstanding the foregoing, unless the Stock Option Agreement provides otherwise, any Stock Option granted under this Plan shall be exercisable in full, without regard to any installment exercise provisions, for a period specified by the Company, but not to exceed sixty (60) days, prior to the occurrence of any of the following events: (i) dissolution or liquidation of the Company other than in conjunction with a bankruptcy of the Company or any similar occurrence, (ii) any merger, consolidation, acquisition, separation, reorganization, or similar occurrence, where the Company will not be the surviving entity or (iii) the transfer of substantially all of the assets of the Company or 75% or more of the outstanding Stock of the Company.

The grant of a Stock Option pursuant to the Plan shall not limit in any way the right or power of the Company to make adjustments, reclassifications, reorganizations or changes of its capital or business structure or to merge, exchange or consolidate or to dissolve, liquidate, sell or transfer all or any part of its business or assets.

SECTION 5. <u>Stock Appreciation Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) Grant
 and Exercise. Stock Appreciation Rights may be granted alone or in conjunction with all or
 part of any Stock Option granted under the Plan. ln the case of a grant in conjunction with
 a Non-Qualified Stock Option , such
 rights may be granted either at or after the time of the grant of such Option. In the case
 of a grant in conjunction with an Incentive Stock Option, such rights may be granted only
 at the time of the grant of the option.

&nbsp;&nbsp;&nbsp;&nbsp;(b) Terms
 and Conditions . Stock
 Appreciation Rights shall be subject to such terms and conditions, not inconsistent with
 the provisions of the Plan, as shall b e determined from time to time by the
 Committee.

SECTION 6. <u>Restricted Stock</u>.

&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Administration</u>.
 Shares of Restricted Stock may be issued either alone or in addition to other awards granted
 under the Plan. The Committee shall determine the officers and key employees of the Company
 and Subsidiaries to whom , and
 the time or times at which , grants
 of Restricted Stock will be made , the
 number of shares to be awarded , the
 time or times within which such awards may be subject to forfeiture, and all other conditions
 of the awards . The
 Committee may also condition the grant of Restricted Stock upon the attainment of specified
 performance goals. The provisions of Restricted Stock awards need not be the same with respect
 to each recipient .

&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Awards and Certificates</u>. The prospective recipient of an award of shares of Restricted Stock
 shall not have any rights with respect to such award, unless and until such recipient has
 executed an agreement evidencing the award and has delivered a fully executed copy thereof
 to the Company, and has otherwise complied with the then applicable terms and conditions .

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Each participant shall
 be issued a stock certificate in respect of shares of Restricted Stock awarded under the
 Plan. Such certificate shall be registered in the name of the participant, and shall bear
 an appropriate legend referring to the terms , conditions, and restrictions applicable
 to such award, substantially in the following form :

"The transferability of this certificate and the shares of stock represented hereby are subject to the terms and conditions (including forfeiture) of the Encore Medical, Inc. 2018 Stock Incentive Plan and an Agreement entered into between the registered owner and Encore Medical, Inc. Copies of such Plan and Agreement are on file in the offices of Encore Medical, Inc."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. The Committee shall require
 that the stock certificates evidencing such shares be held in custody by the Company until
 the restrictions thereon shall have lapsed, and that, as a condition of any Restricted Stock
 award, the participant shall have delivered a stock power, endorsed in blank, relating to
 the Stock covered by such award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Restrictions and Conditions</u>. The shares of Restricted Stock awarded pursuant to the Plan shall be
 subject to the following restrictions and conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject to the provisions
 of this Plan and the award agreement , during a period set by the Committee
 commencing with the date of such award (the "Restriction Period") , the participant shall not be permitted
 to sell, transfer, pledge or assign shares of Restricted Stock awarded under the Plan. In
 no event shall the Restriction Period be less than one (1) year. Within these limits,
 the Committee may provide for the lapse of such restrictions in installments where deemed
 appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Except as provided in
 paragraph (c.)(i) of this Section 6, the participant shall have, with respect to
 the shares of Restricted Stock, all of the rights of a shareholder of the Company, including
 the right to vote the shares and the right to receive any cash dividends . The Committee, in its sole discretion,
 may permit or require the payment of cash dividends to be deferred and, if the Committee
 so determines, reinvested in additional shares of Restricted Stock (to the extent shares
 are available under Section 3). Certificates for shares of unrestricted Stock shall
 be delivered to the grantee promptly after, and only after , the period of forfeiture shall have
 expired without forfeiture in respect of such shares of Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Subject to the provisions
 of the award agreement and paragraph (c)(iv) of this Section 6 , upon termination of employment for any
 reason during the Restriction Period , all shares still subject to restriction
 shall be forfeited by the participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In the event of special
 hardship circumstances of a participant whose employment is terminated (other than for Cause),
 including death, Disability or Retirement, or in the event of an unforeseeable emergency
 of a participant still in service, the Committee may, in its sole discretion, when it finds
 that a waiver would be in the best interest of the Company, waive in whole or in part any
 or all remaining restrictions with respect to such participant's shares of Restricted Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Notwithstanding the foregoing,
 all restrictions with respect to any participant's shares of Restricted Stock shall lapse,
 on the date determined by the Committee, prior to, but in no event more than sixty (60) days
 prior to, the occurrence of any of the following events:(i) dissolution or liquidation
 of the Company, other than in conjunction with a bankruptcy of the Company or any similar
 occurrence, (ii) any merger, consolidation, acquisition, separation, reorganization,
 or similar occurrence, where the Company will not be the surviving entity or (iii) the
 transfer of substantially all of the assets of the Company or 75% or more of the outstanding
 Stock of the Company.

SECTION 7. <u>Deferred Stock Awards</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Administration</u>. Deferred Stock
 may be awarded either alone or in addition to other awards granted under the Plan. The Committee
 shall determine the officers and key employees of the Company to whom and the time or times
 at which Deferred Stock shall be awarded, the number of Shares of Deferred Stock to be awarded
 to any participant or group of participants, the duration of the period (the "Deferral
 Period") during which, and the conditions under which, receipt of the Stock will be
 deferred, and the terms and conditions of the award in addition to those contained in paragraph
 (b) of this Section 7. The Committee may also condition the grant of Deferred Stock
 upon the attainment of specified performance goals. The provisions of Deferred Stock awards
 need not be the same with respect to each recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Terms and Conditions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Subject
 to the provisions of this Plan and the award agreement, Deferred Stock awards may not be
 sold, assigned, transferred, pledged or otherwise encumbered during the Deferral Period.
 In no event shall the Deferral Period be less than one (1) year. At the expiration of
 the Deferral Period (or Elective Deferral Period, where applicable), share certificates shall
 be delivered to the participant, or his legal representative, in a number equal to the shares
 covered by the Deferred Stock award.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Amounts
 equal to any dividends declared during the Deferral Period with respect to the number of
 shares covered by a Deferred Stock award will be paid to the participant currently or deferred
 and deemed to be reinvested in additional Deferred Stock or otherwise reinvested , all as determined at the time of the
 award by the Committee, in its sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Subject
 to the provisions of the award agreement and paragraph (b)(iv) of this Section 7,
 upon termination of employment for any reason during the Deferral Period for a given award,
 the Deferred Stock in question shall be forfeited by the participant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) In
 the event of special hardship circumstances of a participant whose employment is terminated
 (other than for Cause) including death , Disability or Retirement, or i n
 the event of an unforeseeable emergency of a participant still in service, the Committee
 may , in
 its sole discretion , when
 it finds that a waiver would be in the best interest of the Company, wa i ve
 in whole or in part any or all of the remaining deferral limitations imposed hereunder with
 respect to any or all of the participant's Deferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) A participant
may elect to further defer receipt of the award for a specified period or until a specified event (the "Elective Deferral Period"),
subject in each case to the Committee's approval and to such terms as are determined by the Committee, all in its sole discretion. Subject
to any exceptions adopted by the Committee, such election must generally be made prior to completion of one half of the Deferral Period
for a Deferred Stock award (or for an installment of such an award).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Each award shall
be confirmed by, and subject to the terms of, a Deferred Stock agreement executed by the Company and the partic i pant.

SECTION 8. <u>Target Grant Program with Automatic Target Replacement Options</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Establishment of Target Level</u>. The Committee shall establish target levels for the number of Options to be held (the "Target Level") by its officers and key employees (each, a "Target Optionee"), Each Target Optionee's Target Level is based on the position held by the Target Optionee and the level of responsibility, as determined by the Committee. The Committee may change each Target Optionee's Target Level, as a result of changes, increases or decreases in the Target Optionee's position with the Company or level of responsibilities. The Committee shall grant to each Target Optionee a number of Stock Options which when added to the number of Stock Options then held by such Target Optionee equal the Target Level. These newly granted options will vest and have a term as provided in paragraph (d) with respect to Target Replacement Options. Stock Options held by a Target Optionee in an amount equal to the Target Level shall be referred to herein as the Target Optionee's "Target Options". In the event a Target Optionee holds Stock Options in excess of his or her Target Level, the first Stock Options so held and exercised up to the Target Level shall be deemed Target Options. No Target Replacement Options shall be granted with respect to Stock Options which are not Target Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Target Replacement Options</u>. Unless otherwise provided by the Committee, upon the exercise of a Target Option or Target Replacement Option, a Target Optionee shall automatically be granted a new Stock Option on the date of such exercises to purchase that number of shares of the Company's Common Stock equal to the number of shares of the Company's Common Stock to which such exercise relates to bring the number of options held by the Target Optionee after such exercise back to the Target Level (''Target Replacement Options"). The Target Optionee shall not be required to exercise Target Options prior to the exercise of Target Replacement Options. Subject to the provisions set forth herein, Target Replacement Options may be issued as many times as outstanding Target Options or Target Replacement Options are exercised.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Target Replacement Option Price</u>. The Option Price for each share of Stock subject to the Target Replacement Options shall be the Fair Market Value of the Stock on the date of exercise of the existing Stock Option which triggers the automatic grant of the Target Replacement Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Exercisability and Option Term</u>. The vesting schedule for each Target Replacement Option shall be identical to the vesting schedule applicable to the original Option grant. The term of each Target Replacement Option shall expire ten (10) years from the date of grant of such Target Replacement Option. Such vesting shall cease, and the Target Optionee shall forfeit any Target Option and any Target Replacement Options which are not vested as of the Target Optionee's termination of employment, without regard for the _reason for such termination. Such Option shall be exercised and payment made in accordance with the provisions set forth in the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Restrictions on Number of Shares</u>. The aggregate number of Target Replacement Options granted during any fiscal year of the Company to any Target Optionee shall not exceed 100,000 shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Restrictions on Additional Options</u>. Unless otherwise provided by the Committee, no Target Optionee shall be granted Stock Options in addition to the Target Replacement Options unless the Committee increases the designated Target Level for such Target Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Status of Target Optionee</u>. No Target Replacement Options may be granted to any Target Optionee who is not employed by the Company at the time of exercise of a Stock Option which triggers the grant of a Target Replacement Option nor may any such Stock Option be granted to a Non-Employee Director who is not a director of the Company at the time of exercise of a Stock Option which triggers the grant of a Target Replacement Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Limitation on Sale</u>. During a period set by the Committee commencing with the date of exercise of any existing Stock Option which triggers the automatic grant of the Target Replacement Options (the "Holding Period"), the participant shall not be permitted to sell, transfer, pledge or assign an amount equal to 50 percent (50%) of the shares obtained from such exercise. In no event shall the Holding Period be less than one (1) year. Within these limits, the Committee may provide for the lapse of such restrictions in installments where deemed appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Additional Provisions</u>. The grant of a Target Replacement Option is in all cases subject to the availability of sufficient shares for grant under the Plan or shareholder approval of an increase in the number of shares reserved under the Plan to accommodate the grant; and notwithstanding anything contained herein to the contrary, no Target Replacement Option shall be exercisable if a required shareholder approval has not been obtained. In addition to the terms of this Section 9, all Target Replacement Options shall be subject to the terms and provisions set forth in this Plan which are in effect with respect to Non-Qualified Stock Options.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <u>Change of Control</u>. After a public announcement by the Company of an event described in Section 5(e), no further Target Replacement Options shall be granted with respect to any Target Options or Target Replacement Options then outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) <u>Further Restrictions</u>. The Committee may, in its sole discretion, reduce the designated Target Level in general or with respect to a particular Target Optionee by reason of a reduction in the Target Optionee's responsibilities, a change in title or non-performance by the Target Optionee.

SECTION 9. <u>Transfer, Leave of Absence, etc</u>.

For purposes of the Plan, the following events shall not be deemed a termination of employment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) a leave of absence, approved in writing by the Committee, for military service or sickness, or for any other purpose approved by the Company if the period of such leave does not exceed ninety (90) days (or such longer period as the Committee may approve, in its sole discretion); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) a leave of absence in excess of ninety (90) days, approved in writing by the Committee, but only if the employee's right to reemployment is guaranteed either by a statute or by contract, and provided that, in the case of any leave of absence, the employee returns to work within 30 days after the end of such leave.

SECTION 10. <u>Amendments and Termination</u>.

The Board may amend, alter, or discontinue the Plan, but no amendment, alteration, or discontinuation shall be made (i) which would impair the rights of an optionee or participant under a Stock Option, Stock Appreciation Right, Restricted Stock, Deferred Stock or other Stock-based award theretofore granted, without the optionee's or participant's consent, or (ii) which without the approval of the stockholders of the Company would cause the Plan to no longer comply with Section 422 of the Code or any other regulatory requirements or rules and regulations promulgated by the Securities and Exchange Commission.

The Committee may amend the terms of any award or option theretofore granted, prospectively or retroactively, but, subject to Section 3 above, no such amendment shall impair the rights of any holder without his or her consent. The Committee may also substitute new Stock Options for previously granted options, including previously granted options having higher option prices.

SECTION 11. <u>Unfunded Status of Plan</u>.

The Plan is intended to constitute an "unfunded" plan for incentive and deferred compensation. With respect to any payments not yet made to a participant or optionee by the Company, nothing contained herein shall give any such participant or optionee any rights that are greater than those of a general creditor of the Company. ln its sole discretion, the Committee may authorize the creation of trusts or other arrangements to meet the obligations created wider the Plan to deliver Stock or payments in lieu of or with respect to awards hereunder, provided, however, that the existence of such trusts or other arrangements is consistent with the unfunded status of the Plan.

SECTION 12. General Provisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Committee may require each person purchasing shares pursuant to a Stock Option under the Plan to represent to and agree with the Company in writing that the optionee is acquiring the shares without a view to distribution thereof. The certificates for such shares may include any legend which the Committee deems appropriate to reflect any restrictions on transfer.

All certificates for shares of Stock delivered under the Plan pursuant to any Restricted Stock, Deferred Stock or other Stock-based awards shall be subject to such stock-transfer orders and other restrictions as the Committee may deem advisable under the rules, regulations, and other requirements of the Securities and Exchange Commission, any stock exchange upon which the Stock is then listed, and any applicable Federal or state securities laws, and the Committee may cause a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Subject to paragraph (d) below, recipients of Restricted Stock, Deferred Stock and other Stock-based awards under the Plan (other than Stock Options) are not required to make any payment or provide consideration other than the rendering of services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Nothing contained in this Plan shall prevent the Board of Directors from adopting other or additional compensation arrangements, subject to stockholder approval if such approval is required; and such arrangements may be either generally applicable or applicable only in specific cases. The adoption of the Plan shall not confer upon any employee of the Company or any Subsidiary any right to continued employment with the Company or a Subsidiary, as the case may be, nor shall it interfere in any way with the right of the Company or a Subsidiary to terminate the employment of any of its employees at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each participant shall, no later than the date as of which any part of the value of an award first becomes includable as compensation in the gross income of the participant for Federal income tax purposes, pay to the Company, or make arrangements satisfactory to the Committee regarding payment of, any Federal, state, or local taxes of any kind required by law to be withheld with respect to the award. The obligations of the Company under the Plan shall be conditional on such payment or arrangements and the Company and Subsidiaries shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the participant. With respect to any award under the Plan, if the terms of such award so permit, a participant may elect by written notice to the Company to satisfy part or all of the withholding tax requirements associated with the award by (i) authorizing the Company to retain from the number of shares of Stock that would otherwise be deliverable to the participant, or (ii) delivering to the Company from shares of Stock already owned by the participant, that number of shares having an aggregate Fair Market Value equal to part or all of the tax payable by the participant under this Section 12(d). Any such election shall be in accordance with, and subject to, applicable tax and securities laws, regulations and rulings.

SECTION 13. <u>Effective Date of Plan</u>.

The Plan shall be effective on January 16, 2018 (the date of approval by the Board of Directors), subject to approval by a vote of the holders of a majority of the Stock entitled to vote to approve the Plan. The Plan shall expire (unless terminated earlier) as of January 15, 2028. Awards may be granted under the Plan prior to such Shareholder approval, provided such awards are made subject to Shareholder approval.

<u>Exhibit</u>

<u>Form of Stock Option Agreement</u>

**INCENTIVE STOCK OPTION AGREEMENT**

THIS OPTION AGREEMENT is made as of the<u> </u>day of<u> </u>,<u> </u>, (the "Option Date") between Encore Medical, Inc., a Minnesota corporation (the "Company"), and<u> </u>, an employee of the Company (the "Optionee").

The Company desires, by affording the Optionee an opportunity to purchase shares of its Common Stock, $.01 par value per share (the "Common Stock"), as hereinafter provided, to carry out the purposes of the Encore Medical, Inc. 2018 Omnibus Stock Incentive Plan of the Company (the "Plan").

THEREFORE, the parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Grant of Option</u>. The Company hereby grants to the Optionee the right and option (hereinafter called the "Option") to purchase from the Company all or any part of an aggregate amount of _____________ shares of the Common Stock of the Company (the "Shares") on the terms and conditions herein set forth. The Option is intended to be an "incentive stock option" as that term is defined in Section 422 of the Internal Revenue Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Purchase Price</u>. The purchase price of the shares of Common Stock pursuant to this Option shall be $_______ per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Term of Option</u>. The term of the Option shall be for a period of ten (10) years from the date hereof (the "Option Date"), subject to earlier termination as hereinafter provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Vesting of Option</u>. Subject to the terms and conditions hereof, this Option may be exercised during its term as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) From and after the Option Date,
the Option may be exercised as to one-third (1/3) of the Shares (rounded down to the next whole number of shares); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) From and after the first anniversary
of the Option Date, the Option may be exercised as to an additional one-third (1/3) of the Shares (rounded down to the next whole number
of shares); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) From and after the second anniversary
of the Option Date, the Option may be exercised as to all remaining Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Non-Transferability</u>. The Option shall not be transferable otherwise than by will or the laws of descent and distribution, and the Option may be exercised, during the lifetime of the Optionee, only by the Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Termination by Death</u>. If an Optionee's employment by the Company terminates by reason of death, the Option may thereafter be immediately exercised, to the extent then exercisable by the legal representative of the estate or by the legatee of the Optionee under the will of the Optionee, for a period of one year from the date of such death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Termination by Reason of Disability</u>. If an Optionee's employment by the Company terminates by reason of Disability, as that term is defined in the Plan, any Option held by such Optionee may thereafter be exercised, to the extent it was exercisable at the time of termination due to Disability for a period of one year from the date of such termination of employment or the expiration of the stated term of the Option, whichever period is the shorter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Termination by Reason of Retirement</u>. If an Optionee's employment by the Company terminates by reason of Retirement, as that term is defined in the Plan, any Option held by such Optionee may thereafter be exercised to the extent it was exercisable at the time of such Retirement, but may not be exercised after three months from the date of such termination of employment or the expiration of the stated term of the Option, whichever period is the shorter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Other Termination</u>. If an Optionee's employment by the Company terminates for any reason other than death, Disability or Retirement, the Option shall thereupon terminate, except that the Option may be exercised to the extent it was exercisable at such termination for the lesser of three months or the balance of the Option's term, provided, however, that if the Optionee's employment is terminated for Cause, all rights under the Option shall terminate and expire upon such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Method of Exercise</u>. Options may be exercised in whole or in part at any time during the term of the Option by giving written notice of exercise to the Company specifying the number of shares to be purchased. Such notice shall be accompanied by payment in full of the purchase price, either by certified or bank check, or by any other form of legal consideration deemed sufficient by the Committee and consistent with the Plan's purpose and applicable law, including promissory notes or a properly executed exercise notice together with irrevocable instructions to a broker acceptable to the Company to promptly deliver to the Company the amount of sale or loan proceeds to pay the exercise price. Payment in full or in part may also be made in the form of stock already owned by the Optionee that is not Restricted Stock. No shares of stock shall be issued until full payment therefor has been made. An Optionee shall generally have the rights to dividends and other rights of a shareholder with respect to shares subject to the Option when the Optionee has given written notice of exercise and has paid in full for such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Investment Certificate</u>. Prior to the receipt of the certificates pursuant to the exercise of the Option granted hereunder, the Optionee shall, if required in the Company's discretion, demonstrate an intent to hold the shares acquired by exercise of the Option for investment and not with a view to resale or distribution thereof to the public, by delivering to the Company an investment certificate or letter in such form as the Company may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>No Rights as a Shareholder</u>. The Optionee shall have none of the rights of a shareholder with respect to the shares subject to this Option until the shares have been issued to Optionee upon exercise of the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>The Plan</u>. This Option is subject to certain additional terms and conditions set forth in the Plan pursuant to which this Option has been issued. A copy of the Plan is on file with the Secretary of the Company and by acceptance hereof Optionee agrees to and accepts this Option subject to the terms of the Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Disputes</u>. As a condition of the granting of the Option herein granted, the Optionee agrees, for the Optionee and the Optionee's personal representatives, that any dispute or disagreement which may arise under or as a result of or pursuant to this Agreement shall be determined by the Committee (as such term is defined in the Plan), in its sole discretion, and that any interpretation by said Committee of the terms of this Agreement shall be final, binding and conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Binding Effect</u>. This Agreement shall be binding upon the heirs, executors, administrators and successors of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Certain Dispositions</u>. If Optionee shall dispose of any of the shares of Common Stock acquired upon exercise of the Option within two (2) years from the date the Option was granted or within one (1) year after the date of exercise of the Option, then, in order to provide the Company with the opportunity to claim the benefit of any income tax deduction, Optionee shall promptly notify the Company of the dates of acquisition and disposition of such shares, the number of shares so disposed of, and the consideration, if any, received for such shares. In order to comply with all applicable federal or state income tax laws or regulations, the Company may take such action as it deems appropriate to insure (i) notice to the Company of any disposition of the shares of Common Stock acquired upon exercise of the Option within the time periods described above and (ii) that, if necessary, all applicable federal or state payroll, withholding, income or other taxes are withheld or collected from Optionee.

IN WITNESS WHEREOF, the Company and the Optionee have executed this Agreement as of the date and year first above written.

---

| | |
|:---|:---|
| Encore Medical, Inc | Encore Medical, Inc |
| By: |  |
|  | President |
| OPTIONEE | OPTIONEE |
| Type name of Optionee here | Type name of Optionee here |

---

## Exhibit 10.4

**Exhibit 10.4(b)**

![](tm2525595d4_ex10-4bimg01.jpg)

**INCENTIVE STOCK OPTION AGREEMENT**

THIS OPTION AGREEMENT is made as of the ______ day of ________, ____, (the "Option Date") between Encore Medical, Inc., a Minnesota corporation (the "Company"), and ____________________________, an employee of the Company (the "Optionee").

The Company desires, by affording the Optionee an opportunity to purchase shares of its Common Stock, $.01 par value per share (the "Common Stock"), as hereinafter provided, to carry out the purposes of the Encore Medical, Inc. 2018 Omnibus Stock Incentive Plan of the Company (the "Plan").

THEREFORE, the parties hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Grant of Option</u>. The Company hereby grants to the Optionee the right and option (hereinafter called the "Option") to purchase from the Company all or any part of an aggregate amount of ________ shares of the Common Stock of the Company (the "Shares") on the terms and conditions herein set forth. The Option is intended to be an "incentive stock option" as that term is defined in Section 422 of the Internal Revenue Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Purchase Price</u>. The purchase price of the shares of Common Stock pursuant to this Option shall be $______ per share.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Term of Option</u>. The term of the Option shall be for a period of ten (10) years from the date hereof (the "Option Date"), subject to earlier termination as hereinafter provided.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Vesting of Option</u>. Subject to the terms and conditions hereof, this Option may be exercised during its term as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) From and after the Option Date, the Option may be exercised
as to one-third (1/3) of the Shares (rounded down to the next whole number of shares); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) From and after the first anniversary of the Option Date,
the Option may be exercised as to an additional one-third (1/3) of the Shares (rounded down to the next whole number of shares); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) From and after the second anniversary of the Option Date,
the Option may be exercised as to all remaining Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Non-Transferability</u>. The Option shall not be transferable otherwise than by will or the laws of descent and distribution, and the Option may be exercised, during the lifetime of the Optionee, only by the Optionee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Termination by Death</u>. If an Optionee's employment by the Company terminates by reason of death, the Option may thereafter be immediately exercised, to the extent then exercisable by the legal representative of the estate or by the legatee of the Optionee under the will of the Optionee, for a period of three months from the date of such death.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Termination by Reason of Disability</u>. If an Optionee's employment by the Company terminates by reason of Disability, as that term is defined in the Plan, any Option held by such Optionee may thereafter be exercised, to the extent it was exercisable at the time of termination due to Disability for a period of three months from the date of such termination of employment or the expiration of the stated term of the Option, whichever period is the shorter.

![](tm2525595d4_ex10-4bimg01.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Termination by Reason of Retirement</u>. If an Optionee's employment by the Company terminates by reason of Retirement, as that term is defined in the Plan, any Option held by such Optionee may thereafter be exercised to the extent it was exercisable at the time of such Retirement, but may not be exercised after one month from the date of such termination of employment or the expiration of the stated term of the Option, whichever period is the shorter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Other Termination</u>. If an Optionee's employment by the Company terminates for any reason other than death, Disability or Retirement, the Option shall thereupon terminate, except that the Option may be exercised to the extent it was exercisable at such termination for the lesser of one month or the balance of the Option's term, provided, however, that if the Optionee's employment is terminated for Cause, all rights under the Option shall terminate and expire immediately upon such termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Method of Exercise</u>. Options may be exercised in whole or in part at any time during the term of the Option by giving written notice of exercise to the Company specifying the number of shares to be purchased. Such notice shall be accompanied by payment in full of the purchase price, either by certified or bank check, or by any other form of legal consideration deemed sufficient by the Committee and consistent with the Plan's purpose and applicable law, including promissory notes or a properly executed exercise notice together with irrevocable instructions to a broker acceptable to the Company to promptly deliver to the Company the amount of sale or loan proceeds to pay the exercise price. Payment in full or in part may also be made in the form of stock already owned by the Optionee that is not Restricted Stock. No shares of stock shall be issued until full payment therefor has been made. An Optionee shall generally have the rights to dividends and other rights of a shareholder with respect to shares subject to the Option when the Optionee has given written notice of exercise and has paid in full for such shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Investment Certificate</u>. Prior to the receipt of the certificates pursuant to the exercise of the Option granted hereunder, the Optionee shall, if required in the Company's discretion, demonstrate an intent to hold the shares acquired by exercise of the Option for investment and not with a view to resale or distribution thereof to the public, by delivering to the Company an investment certificate or letter in such form as the Company may require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>No Rights as a Shareholder</u>. The Optionee shall have none of the rights of a shareholder with respect to the shares subject to this Option until the shares have been issued to Optionee upon exercise of the Option.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>The Plan</u>. This Option is subject to certain additional terms and conditions set forth in the Plan pursuant to which this Option has been issued. A copy of the Plan is on file with the Secretary of the Company and by acceptance hereof Optionee agrees to and accepts this Option subject to the terms of the Plan.

![](tm2525595d4_ex10-4bimg01.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Disputes</u>. As a condition of the granting of the Option herein granted, the Optionee agrees, for the Optionee and the Optionee's personal representatives, that any dispute or disagreement which may arise under or as a result of or pursuant to this Agreement shall be determined by the Committee (as such term is defined in the Plan), in its sole discretion, and that any interpretation by said Committee of the terms of this Agreement shall be final, binding and conclusive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Binding Effect</u>. This Agreement shall be binding upon the heirs, executors, administrators and successors of the parties hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Certain Dispositions</u>. If Optionee shall dispose of any of the shares of Common Stock acquired upon exercise of the Option within two (2) years from the date the Option was granted or within one (1) year after the date of exercise of the Option, then, in order to provide the Company with the opportunity to claim the benefit of any income tax deduction, Optionee shall promptly notify the Company of the dates of acquisition and disposition of such shares, the number of shares so disposed of, and the consideration, if any, received for such shares. In order to comply with all applicable federal or state income tax laws or regulations, the Company may take such action as it deems appropriate to insure (i) notice to the Company of any disposition of the shares of Common Stock acquired upon exercise of the Option within the time periods described above and (ii) that, if necessary, all applicable federal or state payroll, withholding, income or other taxes are withheld or collected from Optionee.

IN WITNESS WHEREOF, the Company and the Optionee have executed this Agreement as of the date and year first above written.

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ENCORE MEDICAL, INC. |
| By | |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OPTIONEE |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Type name of Optionee here |

---

## Exhibit 10.4

**Exhibit 10.4(c)**

![](tm2525595d4_ex10-4bimg01.jpg)

**NONQUALIFIED**

**STOCK OPTION AGREEMENT**

THIS OPTION AGREEMENT is made as of the <u>____</u>day of _________,_____, (the "Option Date") between Encore Medical, Inc., a Minnesota corporation (the "Company"), and _________________________, an employee of the Company (the "Optionee").

The Company desires to afford the Optionee an opportunity to purchase shares of its Common Stock, of the par value of $0.01 per share (the "Common Stock"), as hereinafter provided.

NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the parties hereby agree as follows:

1. <u>Grant of Option</u>. The Company hereby grants to the Optionee the right and option (hereinafter called the "Option") to purchase from the Company all or any part of an aggregate amount of ____________ shares of the Common Stock of the Company on the terms and conditions herein set forth. For all purposes, this Option shall be a non-qualified stock option.

2. <u>Purchase Price</u>. The purchase price of the shares of Common Stock pursuant to this Option shall be $_______ per share.

3. <u>Term of Option</u>. The term of this Option shall be for a period of <u>ten (10)</u> years from the date hereof (the "Option Date"), subject to earlier termination as hereinafter provided.

4. <u>Vesting of Option</u>. Subject to the terms and conditions hereof, this Option may be exercised during its term as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) From and after the Option Date, the Option may be exercised
as to one-third (1/3) of the Shares (rounded down to the next whole number of shares); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) From and after the first anniversary of the Option Date, the
Option may be exercised as to an additional one-third (1/3) of the Shares (rounded down to the next whole number of shares); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) From and after the second anniversary of the Option Date, the
Option may be exercised as to all remaining Shares.

5. <u>Non-Transferability</u>. The Option shall not be transferable other than by will or the laws of descent and distribution, and the Option may be exercised during the lifetime of the Optionee only by the Optionee. More particularly (but without limiting the generality of the foregoing), the Option may not be assigned, transferred (except as provided above), pledged, or hypothecated in any way; shall not be assignable by operation of law; and shall not be subject to execution, attachment, or similar process. Any attempted assignment, transfer, pledge, hypothecation, or other disposition of the Option contrary to the provisions hereof, and the levy of any execution, attachment or similar process upon the Option, shall be null and void and without effect.

![](tm2525595d4_ex10-4bimg01.jpg)

6. <u>Termination</u>. This Option is exercisable by the Optionee as provided in paragraph 3 above but only while the Optionee continues to serve as an employee of the Company; provided, however, that in the event Optionee ceases to be an employee of the Company for any reason, including the death of the Optionee, the Optionee or his or her personal representative (or the person or persons to whom the Optionee's rights under the Option shall pass by will or by the laws of descent and distribution) may exercise the Option (to the extent that the Optionee shall have been entitled to do so at the date he or she ceases to be an employee of the Company) for a period of thirty days after such cessation or the expiration of the stated term of the Option, whichever period is shorter.

None of the provisions of this Agreement shall be considered to permit, under any circumstances, the exercise of this Option, by any person, after the Expiration Date.

7. <u>Method of Exercise</u>. Subject to the terms and conditions of this Option Agreement, Options may be exercised in whole or in part at any time during the term of the Option by giving written notice of exercise to the Company specifying the number of shares to be purchased. Such notice shall be signed by the person exercising the Option and be accompanied by payment in full of the purchase price, either by certified or bank check, or by any other form of legal consideration deemed sufficient by the Company's Board of Directors and consistent with applicable law, including promissory notes or a properly executed exercise notice together with irrevocable instructions to a broker acceptable to the Company to promptly deliver to the Company the amount of sale or loan proceeds to pay the exercise price and applicable withholding taxes. As determined by the Company's Board of Directors at the time of grant or exercise in its sole discretion, payment in full or in part may also be made in the form of Stock already owned by the Optionee that is not Restricted Stock (which in the case of Stock acquired upon the exercise of an option have been owned for more than six months on the date of surrender) by delivery of shares of Common Stock of the Company with a fair market value equal to the purchase price or by a combination of cash and such shares whose fair market value shall equal the purchase price. No shares of stock shall be issued until full payment therefore has been made. For purposes of this paragraph, the "fair market value" of the Common Stock of the Company shall be established in the manner set forth by the Company's Board of Directors. The certificate or certificates for the shares as to which the Option shall have been so exercised shall be registered in the name of the person exercising the Option, or if the Optionee elects, in the name of the Optionee and one other person as joint tenants, and shall be delivered as soon as practicable after written notice shall have been received. An Optionee shall generally have the rights to dividends and other rights of a shareholder with respect to shares subject to the Option when the Optionee has given written notice of exercise and has paid in full for such shares. All shares that shall be purchased upon the exercise of the Option as provided herein shall be fully paid and nonassessable.

8. <u>General</u>. The Company shall at all times during the term of the Option reserve and keep available such number of shares of Common Stock as will be sufficient to satisfy the requirements of this Option Agreement, shall pay all original issue and transfer taxes with respect to the issue and transfer of shares pursuant hereto and all other fees and expenses necessarily incurred by the Company in connection therewith, and will from time to time use its best efforts to comply with all laws and regulations which, in the opinion of counsel for the Company, shall be applicable thereto.

9. <u>Status</u>. Neither the Optionee nor the Optionee's executor, administrator, heirs or legatees shall be or have any rights or privileges of a shareholder of the Company in respect of the shares transferable upon exercise of the Option, unless and until certificates representing such shares shall be endorsed, transferred and delivered and the Optionee's name has been entered as the shareholder of record on the books of the Company.

![](tm2525595d4_ex10-4bimg01.jpg)

10. <u>Company Authority</u>. The existence of the Option herein granted shall not affect in any way the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations or other changes in the Company's capital structure of its business, or any merger or consolidation of the Company, or any issue of bonds, debentures, preferred or prior preference stock ahead of or affecting the Common Stock of the Company or the rights thereof, or dissolution or liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise.

11. <u>Disputes</u>. As a condition of the granting of the Option herein granted, the Optionee agrees, for the Optionee and the Optionee's personal representatives, that any dispute or disagreement which may arise under or as a result of or pursuant to this Agreement shall be determined by the Board of Directors of the Company and that any interpretation by the Board of Directors of the terms of this Agreement shall be final, binding and conclusive.

12. <u>Binding Effect</u>. This Agreement shall be binding upon the heirs, executors, administrators and successor of the parties hereto.

IN WITNESS WHEREOF, the Company and the Optionee have executed this Agreement as of the day and year first above written:

---

| | |
|:---|:---|
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ENCORE MEDICAL, INC. |
| By | |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;President |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OPTIONEE |
|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Type name of Optionee here |

---

## Exhibit 10.6

**Exhibit 10.6**

**INDEPENDENT CONTRACTOR AGREEMENT**

**THIS INDEPENDENT CONTRACTOR AGREEMENT** ("Agreement"), effective as of ____________, 2024, between Encore Medical, Inc. ("Company"), and Gregory Steiner, ("Contractor").

**RECITALS**

**WHEREAS** Company is a Minnesota corporation engaged in the manufacturing, marketing and sale of certain medical device products (the "Business); and

**WHEREAS** Company desires to engage the services of Contractor to perform certain services and Contractor is willing to provide certain services to Company; and

**WHEREAS** the parties desire to set forth their understanding and agreement with respect to the terms of Contractor providing services to Company.

**NOW, THEREFORE**, in consideration of the foregoing, the mutual agreements and undertakings contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

**ARTICLE 1**

**<u>Contractor Duties</u>**

**1.1**  **<u>Services</u>** . Contractor shall provide services to Company and shall perform the duties and
responsibilities set forth in Exhibit I attached hereto.

**1.2**  **<u>Use of Company Space</u>** . Contractor may use Company office or Clinical space, equipment and
other support services and supplies as may be assigned by Company as needed to support the performance of Contractor's duties herein.

**1.3**  **<u>Records</u>** . Contractor agrees to make available to any government authority having jurisdiction
over Contractor or Company under federal or state law or regulations, upon request by Company, all records of Contractor required to verify
Contractor's services under this Agreement. Contractor also agrees, upon Company's request, to grant Company access to records
of Contractor that enable Company to verify Contractor's services under this Agreement.

**ARTICLE 2**

**<u>Compensation</u>**

**2.1**  **<u>Compensation Rate</u>** . Company shall pay Contractor as described in Exhibit I on an as
submitted basis. Failure to pay Contractor within two weeks of receipt of Contractor's
invoice may result in a pause or cessation work until Company has paid any open balance owed to Contractor.

**ARTICLE 3**

**<u>Company Duties</u>**

**3.1**  **<u>Company Resources</u>** . Company shall retain all rights of title, possession and ownership of
any equipment and supplies purchased or otherwise acquired for use described herein. Contractor is responsible for all expenses other
than those approved in writing by the Company.

**ARTICLE 4**

**<u>Events of Default</u>**

Each of the following shall be an "Event of Default":

**4.1**  **<u>Company Default</u>** . Company's failure to pay when due any payment required to be made
by Company as described in this Agreement or Company's failure to keep or perform any one or more of the terms, conditions, or covenants
of this Agreement, which failure continues for five (5) days or more after written notice from Contractor (unless such failure requires
work to be performed, acts to be done or conditions to be removed, which by their nature cannot reasonably be performed, done or removed,
as the case may be, within such five (5) day period, in which case no Event of Default shall be deemed to have occurred so long as
Company shall have commenced curing the same within said five (5) day period and shall diligently and continuously prosecute the
same to completion and shall further provide Contractor with bi-weekly written reports of the status of such cure).

**4.2**  **<u>Contractor Default</u>** . Contractor's failure to keep or perform any one or more of the
terms or conditions, covenants of this Agreement, which failure continues for five (5) days or more after written notice from Company
(unless such failure requires work to be performed, acts to be done or conditions to be removed, which by their nature cannot reasonably
be performed, done or removed, as the case may be, within such five (5) day period, in which case no Event of Default shall be deemed
to have occurred so long as Contractor shall have commenced curing the same within said five (5) day period and shall diligently
and continuously prosecute the same to completion and shall further provide Company with bi-weekly written reports of the status of such
cure).

**ARTICLE 5**

**<u>Protection and Confidentiality of Data</u>**

**5.1**  **<u>Definition</u>** . "Confidential Information", as used in this Article 5, means
information that is not generally known, or not readily ascertainable by proper means, and that is proprietary to Company or its business.
This information includes, without limitation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1.1** Trade secret information about Company and about Company's businesses, finances, operations, products,
and services.

-2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1.2** Information concerning Company's business as conducted in the past or as it may conduct it in the
future, including, without limitation, information about Company's sales, pricing, payment schedules, service fees, finances, management
systems, computer software and programs and information concerning specific Company's, Contractors, or other health care Contractors;
and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1.3** Information concerning Company's current products or services, including, without limitation, information
about Company's joint ventures, affiliations, research, development, purchasing, accounting, marketing, selling, medical policies,
Clinical protocols, practice parameters and other non-public information marked as "Confidential."

Any information that the Company treats as Confidential Information will be presumed to be Confidential Information (whether Contractor or others originated it and regardless of how Contractor obtained it).

**5.2**  **<u>Non-Confidential Information</u>** . "Confidential Information," as used in this Article 5,
does not include information that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2.1** Is or becomes generally available to the public other than as a result of a disclosure by Contractor or
her representatives or employees in violation of her obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2.2** Was available to or known by Contractor or her representatives or employees on a non-confidential basis
prior to disclosure by Company; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2.3** Was or becomes available to Contractor on a non-confidential basis from a source other than Company or
its representatives or employees; provided, that such source has rightfully obtained such information or is not otherwise prohibited from
transmitting the information to Contractor.

**5.3**  **<u>Non-Disclosure and Improper Use of Confidential Information</u>** . Except as specifically permitted
by an authorized officer of Company or by written policies of Company, Contractor will not, either during the term of or after termination
of this Agreement, use Confidential Information for any purpose other than the business of Company or disclose it to any person not authorized
by Company to receive such Confidential Information. When this Agreement is terminated, Contractor shall promptly deliver to Company all
records and any compositions, articles, devices, apparatus, and other items that disclose, describe, or embody Confidential Information,
including all copies, reproductions, and specimens of the Confidential Information in Contractor's possession, regardless of who
prepared them, and will promptly deliver any other property of a Company in Contractor's possession, whether or not Confidential
Information. The rights of Company set forth in this Article 5 are in addition to any rights of Company with respect to protection
of trade secrets or Confidential Information arising out of the common or statutory laws of the State of Minnesota.

**5.4**  **<u>Survival</u>** . The obligations set forth in this Article 5 shall survive the expiration
or termination for any reason of this Agreement for a period of two (2) years.

-3

**ARTICLE 6**

**<u>Term and Termination.</u>**

**6.1**  **<u>Term</u>** . This Agreement shall continue in full force and effect from the effective date set
forth above for an initial term of twelve (12) months (the "Initial Term") and shall then expire unless renewed in writing
for subsequent six (6) month terms unless not renewed or cancelled in accordance with 6.2, 6.3 or 6.4 below.

**6.2**  **<u>Termination Without Cause</u>** . Notwithstanding the foregoing, this Agreement may be terminated
at any time by either party, with or without cause, upon the provision to the other party of thirty (30) days prior written notice of
termination.

**6.3**  **<u>Termination For Cause by Company</u>** . Company shall have the option to terminate this Agreement
immediately upon an Event of Default as set forth in Article 4.2 or for any breach by Contractor of Article V, above.

**6.4**  **<u>Termination For Cause by Contractor</u>** . Contractor shall have the option to terminate this
Agreement immediately upon an Event of Default as set forth in Article 4.1.

**ARTICLE 7**

**<u>Independent Contractor</u>**

**7.1**  **<u>Independent Contractor</u>** . Contractor is an independent contractor of Company, and will not
act as, and is not an employee of Company for any purpose, including federal or state withholding taxes, F.I.C.A. taxes, workers'
compensation insurance or unemployment benefits, and are not entitled or eligible to participate in any benefits or privileges given or
extended by Company to its employees. Contractor is not granted any authority to assume or to create any obligation or responsibility,
express or implied, on behalf of or in the name of Company, except to the extent, if any, expressly set forth in this Agreement. Nothing
in this Agreement shall be construed to make Contractor a partner, joint venture, or agent of Company. In the performance of his duties
hereunder, the services and the hours Contractor is to work on any given day will be entirely within Contractor's control.

**7.2**  **<u>Taxes</u>** . As an independent contractor, Contractor is solely responsible for payment of all
federal, state and local taxes or contributions imposed or required under unemployment insurance, social security, medical insurance,
income tax or other applicable laws, rules or regulations with respect to Contractor's performance or rendering of the services
under this Agreement (or any Contractor's performance or rendering of services under this Agreement), and agrees to indemnify and
hold Company harmless from any cost, expense or damage (including attorneys' fees) arising from any failure to do so.

-4

**ARTICLE 8**

**<u>Indemnity</u>**

**8.1**  **<u>Mutual Indemnification</u>** . Contractor and Company each agree to indemnify, defend, and hold
harmless the other, their respective successors and permitted assigns, and its officers, trustees, directors, members, agents, employees
and/or representatives from any loss, costs, liability, damages, or expenses (including court costs and attorneys' fees and other
professional fees) arising out of or resulting from such party's breach of the provisions of this Agreement.

-5

**ARTICLE 9**

**<u>Miscellaneous.</u>**

**9.1**  **<u>Notices</u>** . Any notice, demand, request, or other communication under this Agreement shall
be in writing and shall be deemed to have been given on the date of service if personally served or on the fifth day after mailing if
mailed by registered or certified mail, return receipt requested, addressed as follows (or to such other address of which either of the
parties hereto shall have notified the other party hereto in accordance herewith):

To Company: Encore Medical

2975 Lone Oak Drive

Suite 140

Eagan, MN 55121

Attn: Joe Marino

To Contractor: Gregory Steiner

**9.2**  **<u>Assignment and Successors</u>** . This Agreement is not assignable by Company without the written
consent of Contractor, provided, however, that if Company shall merge, consolidate, or enter into a joint venture with or transfer substantially
all of its assets to another corporation or entity, this Agreement shall be binding upon and inure to the benefit of the successor corporation
or entity in such merger, consolidation, joint venture, or transfer. As a personal services agreement, Contractor may not assign this
Agreement nor delegate duties under this Agreement to any other person.

**9.3**  **<u>Binding Effect</u>** . Subject to Section 9.2 above, this Agreement shall be binding upon
and inure to the benefit of the successors and permitted assigns of the parties hereto.

**9.4**  **<u>Governing Law</u>** . This Agreement shall be construed in accordance with, and governed by, the
internal laws of the State of Minnesota without regard to its conflicts of laws.

**9.5**  **<u>Counterparts</u>** . This Agreement may be executed in any number of counterparts, each of which
shall constitute an original and all of which shall constitute one agreement.

**9.6**  **<u>Amendment or Modification</u>** . This Agreement may not be modified or amended except by a written
instrument duly executed by each of the parties hereto.

**9.7**  **<u>Non-exclusivity</u>** . Nothing in this Agreement shall be intended or construed to prevent Contractor
from entering into similar agreements or relationships with other individuals or organizations, so long as such agreements do not interfere
with Contractor's performance of her duties hereunder.

**9.8**  **<u>Entire Agreement</u>** . This Agreement and its Exhibits constitute the entire agreement between
Company and Contractor with respect to the terms thereof, and all prior written or oral agreements and understandings with respect to
the terms of this Agreement are superseded hereby.

-6

**IN WITNESS WHEREOF,** the parties hereto have executed this Independent Contractor Agreement, effective as of the date first written above.

---

| | |
|:---|:---|
| **CONTRACTOR: Gregory Steiner** | **COMPANY: Encore Medical, Inc.** |
| **Katie Harrison** | **Joseph Marino <br> Chief Executive Officer** |

---

-7

**<u>EXHIBIT I</u>**

**Consulting Services for:** Business Operations to include, but not limited to the following.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Regulatory

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Quality Systems

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Clinical Trial Support

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Manufacturing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Engineering

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;· Operations

**Compensation Rate:**

$85.00 per hour. Contractor will submit invoices from time to time documenting hours worked and to be paid. Invoicing via email shall be considered acceptable.

-8

## Exhibit 10.7

**Exhibit 10.7**

**AMENDED AND RESTATED** 

**CONVERTIBLE PROMISSORY NOTE**

**Effective November 24, 2025, this Amended and Restated Convertible Promissory Note supersedes and replaces in its entirety that certain previous original promissory note between Christopher J Turnbull and Encore Medical, Inc. dated October 11, 2023 for the principal amount of $50,000.00. Borrower and lender hereby agree that all prior agreements with respect to the original note are terminated and no longer in force, and further agree that the original note is hereby amended, restated and replaced in its entirety with respect to the principal indebtedness evidenced by this amended note to read as follows:**

**THIS NOTE AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO THE CONSENT OF THE COMPANY AND (1) REGISTRATION IN COMPLIANCE WITH SUCH ACT AND SUCH STATE LAWS OR (2) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED.**

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Amount:** $50,000.00 | **Date:** November 24, 2025 |

---

FOR VALUE RECEIVED, the undersigned, Encore Medical, Inc., a Minnesota corporation (the "Company")\* promises to pay to the order of **Christpher J Turnbull** or his/her permissible heirs and assigns (the "Investor"), the principal sum of **Fifty Thousand Dollars** ($50,000.00), or such lesser amounts thereof as may be outstanding, plus a one-time initial fee equal to twenty percent (20%) of the principal sum indicated above, such fee equal to Ten **Thousand Dollars** ($10,000.00), together with accrued interest on the outstanding amount at an annual rate equal to **10% per annum,** such interest to be calculated beginning on October 11, 2023 (the date such principal funds were originally received by the Company), in accordance with the terms and conditions of this Convertible Promissory Note (the "Note").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Repayment and Maturity Date</u>. All outstanding principal and interest on the Note shall, if not prepaid or converted pursuant to the terms hereof, be due and payable on June 31, 2026 (the "Maturity Date"), unless such date is extended by the Company and the Investor in writing as hereinafter provided. The Company and the Investor may mutually elect to extend the Maturity Date for an additional period of up to six (6) months ending on December 31, 2026 and, in such event, the extended date shall be deemed to be the "Maturity Date" for purposes of the Note; provided, however, that the parties shall evidence the extension of the Maturity Date in an addendum attached to this Note. The Note may be prepaid or redeemed in whole or in part at any time prior to the conversion thereof without penalty or premium of any kind. Upon payment in full of all outstanding obligations under the Note or the receipt by the Investor of the appropriate number of shares upon conversion of the Note as provided herein, the Company's obligations in respect of payment of the Note shall terminate and the Investor shall surrender the Note to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Interest</u>. Interest shall accrue on the outstanding principal balance under this Note at a per annum interest rate equal to ten (10%) percent. All accrued interest under this Note shall be calculated on the basis of actual days elapsed commencing on the date the funds are advanced and received by the company (October 11, 2023) and on the basis of a year consisting of three hundred sixty-five days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Payments and Prepayment</u>. All payments shall be made in lawful money of the United States of America at the address of the Investor set forth below, or at such other place as the Investor may from time to time designate in writing to the Company. Payment shall be credited first to costs, if any, incurred in accordance with Section 8 below, then to fees, accrued interest due and payable and any remainder applied to principal. The Company may prepay this Note without penalty or premium in whole or in part at any time by providing investor with written notice at least ten (10) days in advance of its intention to do so, during which ten day advance period investor may, at its sole option, convert such intended payment into shares of common stock of the company in accordance with section 4 below. The Company hereby waives demand, notice, presentment, protest and notice of dishonor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Conversion of Note</u>. The following terms and conditions shall apply to the Note:

&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 Note may, upon written notice to the Company by the Investor at any time prior to the Note's repayment in full, be converted into unregistered, fully paid nonassessable shares of Common Stock of the Company (the "Conversion Shares") at the conversion price of $5.00 per share on the applicable conversion date (the "Conversion Date"). The number of Conversion Shares issuable upon conversion shall be determined by dividing the unpaid amounts due under the Note by the Conversion Price, rounding any fractional result down to the nearest whole share. No fractional shares shall be issued upon conversion of the Note. In lieu of fractional shares, the Company shall pay cash (based upon the Conversion Price) equal to any fraction of a share remaining.

&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) On the Conversion Date, the Investor shall surrender the Note to the Company and a certificate representing the Conversion Shares shall be issued by the Company to and in the name of the Investor as of the Conversion Date along with a check in the amount of the cash payment, if any, due on account of any fractional 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;(c) Until the Conversion Date (and then only if this Note is converted into Conversion Shares in accordance with this Agreement), the Investor shall not be entitled to vote any such shares or receive any dividends, distributions or other considerations or rights as a shareholder of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5. <u>No Security</u>. This Note is unsecured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6. <u>Default</u>. Each of the following will constitute an "Event of Default" under the Note:

&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 Company shall fail to pay any amount of principal or interest on the Note when due.

&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 Company shall materially breach or fail to perform any of the covenants or agreements of the Company contained herein or in the Note Purchase Agreement, and such breach or failure to perform shall not have been cured by the Company within fifteen days after the Investor has provided written notice to the Company of such breach or failure to perform;

&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) The Company shall (i) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property, (ii) make a general assignment for the benefit of its or any of its creditors, (iii) be dissolved or liquidated in full or in part, (iv) commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such relief or to the appointment of or taking possession of its property by any official in an involuntary case or other proceeding commenced against 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;(d) Proceedings for the appointment of a receiver, trustee, liquidator or custodian of the Company or of all or a substantial part of the property thereof, or an involuntary case or other proceedings seeking liquidation, reorganization or other relief with respect to the Company or its debts under any bankruptcy, insolvency or other similar law or hereafter in effect shall be commenced and an order for relief entered or such proceeding shall not be dismissed or discharged within sixty (60) days of commencement; 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;(e) The Company shall wind up, liquidate or be dissolved.

If any Event of Default occurs, the Investor may declare all outstanding principal amounts and accrued but unpaid interest to be immediately due and payable, and upon such declaration such amounts shall immediately be due and payable and may exercise all other available rights and remedies under applicable law and equity. In the event of an Event of Default under paragraphs (c) or (d) above, all outstanding principal amounts and accrued but unpaid interest shall become, without action of the Investor, immediately due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Accredited Investor and Certificate of Investment Intent</u>. By acceptance of this Note, Investor hereby represents and warrants to the Company that Investor is an "accredited investor" within the meaning of Rule 501(a) of Regulation D promulgated under the Securities Act. Upon automatic conversion of the convertible obligations, if any and at the request of the Company, Investor shall execute and deliver to the Company any instrument, in form satisfactory to the Company, representing that the shares of Common Stock issuable upon such conversion are being acquired by Investor for investment and not with a view to distribution within the meaning of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Costs</u>. In the event the Investor of this Note incurs any reasonable cost or expense in enforcing or attempting to enforce this Note, in whole or in part, the Company agrees to pay the reasonable costs and expenses so paid or incurred by the Investor, including, without limitation, reasonable attorneys' fees and costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Assignment; Successors and Assigns</u>. This Note may not be assigned, sold, transferred, pledged, hypothecated or otherwise disposed of by the Investor without the prior written consent of the Company, which consent shall not be unreasonably withheld. This Note may not be assigned, sold, transferred, pledged, hypothecated or otherwise disposed of by the Company without the prior written consent of the Investor. The rights and obligations of the Company and the Investor of this Note shall be binding upon and benefit the permitted successors, assigns and transferees of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Waiver and Amendment</u>. Any provision of this Note may be amended, waived or modified only with the written consent of the Company and the Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Notices</u>. All notices required or permitted hereunder or under the Note Purchase Agreement shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the party to be notified; (ii) when sent by confirmed telex or facsimile if sent during normal business hours of the recipient, if not, then on the next business day; (iii) three (3) business days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) 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 Company or the Investor at their addresses in the Note Purchase Agreement or at such other address as the Company or the Investor may designate by ten (10) days advance written notice to the other.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Governing Law</u>. This Note and all actions arising out of or in connection with this Note shall be governed by and construed in accordance with the laws of the State of Minnesota, without regard to the conflicts of law provisions of the State of Minnesota or of any other state. The parties acknowledge and agree that the exclusive venue and jurisdiction of any dispute arising out of this Note shall be a federal or state court located in Dakota County, Minnesota.

IN WITNESS WHEREOF, the undersigned have hereunto affixed their signatures:

---

| | | | |
|:---|:---|:---|:---|
| **Investor:** | **Investor:** | **Encore Medical, Inc.** | **Encore Medical, Inc.** |
| By: | /s/ Christopher J Turnbull | By: | /s/ Peter Buonomo |
| Print: | Christopher J Turnbull | Its: | Sr. Vice President |
| Address: | 11 Augusta Place | Print: | Peter Buonomo |
|  | Owatonna, MN 55060 |  | Encore Medical, Inc |
|  |  |  | 2975 Lone Oak Drive, Ste. 140 |
|  |  |  | Eagan, MN 55121 |

---

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Amount Received:** $50,000.00 | **Date:** October 11, 2023 |

---

## Exhibit 10.8

**Exhibit 10.8**

**CONVERTIBLE PROMISSORY NOTE**

**THIS NOTE AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO THE CONSENT OF THE COMPANY AND (1) REGISTRATION IN COMPLIANCE WITH SUCH ACT AND SUCH STATE LAWS OR (2) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED.**

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Amount:** $200,000.00 | **Date:** November 24, 2025 |

---

FOR VALUE RECEIVED, the undersigned, Encore Medical, Inc., a Minnesota corporation (the "Company"), promises to pay to the order of **Joseph A Marino** or his/her permissible heirs and assigns (the "Investor"), the principal sum of **Two Hundred Thousand Dollars** ($200,000.00), or such lesser amounts thereof as may be outstanding, plus a one-time initial fee equal to twenty percent (20%) of the principal sum indicated above, such fee equal to **Forty Thousand Dollars** ($40,000.00), together with accrued interest on the outstanding amount at an annual rate equal to **10% per annum** in accordance with the terms and conditions of this Convertible Promissory Note (the "Note").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Repayment and Maturity Date</u>. All outstanding principal and interest on the Note shall, if not prepaid or converted pursuant to the terms hereof, be due and payable on June 30, 2026 (the "Maturity Date"), unless such date is extended by the Company and the Investor in writing as hereinafter provided. The Company and the Investor may mutually elect to extend the Maturity Date for an additional period of up to six (6) months ending on December 31, 2026 and, in such event, the extended date shall be deemed to be the "Maturity Date" for purposes of the Note; provided, however, that the parties shall evidence the extension of the Maturity Date in a written instrument executed by the parties prior to the original expiration thereof. The Note may be prepaid or redeemed in whole or in part at any time prior to the conversion thereof without penalty or premium of any kind. Upon payment in full of all outstanding obligations under the Note or the receipt by the Investor of the appropriate number of shares upon conversion of the Note as provided herein, the Company's obligations in respect of payment of the Note shall terminate and the Investor shall surrender the Note to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Interest</u>. Interest shall accrue on the outstanding principal balance under this Note at a per annum interest rate equal to ten (10%) percent. All accrued interest under this Note shall be calculated on the basis of actual days elapsed commencing on the date the funds are advanced and received by the company and on the basis of a year consisting of three hundred sixty-five days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Payments and Prepayment</u>. All payments shall be made in lawful money of the United States of America at the address of the Investor set forth below, or at such other place as the Investor may from time to time designate in writing to the Company. Payment shall be credited first to costs, if any, incurred in accordance with Section 8 below, then to fees, accrued interest due and payable and any remainder applied to principal. The Company may prepay this Note without penalty or premium in whole or in part at any time by providing investor with written notice at least ten (10) days in advance of its intention to do so, during which ten day advance period investor may, at its sole option, convert such intended payment into shares of common stock of the company in accordance with section 4 below. The Company hereby waives demand, notice, presentment, protest and notice of dishonor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Conversion of Note</u>. The following terms and conditions shall apply to the Note:

&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 Note may, upon written notice to the Company by the Investor at any time prior to the Note's repayment in full, be converted into unregistered, fully paid nonassessable shares of Common Stock of the Company (the "Conversion Shares") at the conversion price of $5.00 per share on the applicable conversion date (the "Conversion Date"). The number of Conversion Shares issuable upon conversion shall be determined by dividing the unpaid amounts due under the Note by the Conversion Price, rounding any fractional result down to the nearest whole share. No fractional shares shall be issued upon conversion of the Note. In lieu of fractional shares, the Company shall pay cash (based upon the Conversion Price) equal to any fraction of a share remaining.

&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) On the Conversion Date, the Investor shall surrender the Note to the Company and a certificate representing the Conversion Shares shall be issued by the Company to and in the name of the Investor as of the Conversion Date along with a check in the amount of the cash payment, if any, due on account of any fractional 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;(c) Until the Conversion Date (and then only if this Note is converted into Conversion Shares in accordance with this Agreement), the Investor shall not be entitled to vote any such shares or receive any dividends, distributions or other considerations or rights as a shareholder of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>No Security</u>. This Note is unsecured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Default</u>. Each of the following will constitute an "Event of Default" under the Note:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Company shall fail to pay any amount of principal or interest on the Note when due.

&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 Company shall materially breach or fail to perform any of the covenants or agreements of the Company contained herein or in the Note Purchase Agreement, and such breach or failure to perform shall not have been cured by the Company within fifteen days after the Investor has provided written notice to the Company of such breach or failure to perform;

&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) The Company shall (i) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property, (ii) make a general assignment for the benefit of its or any of its creditors, (iii) be dissolved or liquidated in full or in part, (iv) commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such relief or to the appointment of or taking possession of its property by any official in an involuntary case or other proceeding commenced against 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;(d) Proceedings for the appointment of a receiver, trustee, liquidator or custodian of the Company or of all or a substantial part of the property thereof, or an involuntary case or other proceedings seeking liquidation, reorganization or other relief with respect to the Company or its debts under any bankruptcy, insolvency or other similar law or hereafter in effect shall be commenced and an order for relief entered or such proceeding shall not be dismissed or discharged within sixty (60) days of commencement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The Company shall wind up, liquidate or be dissolved.

If any Event of Default occurs, the Investor may declare all outstanding principal amounts and accrued but unpaid interest to be immediately due and payable, and upon such declaration such amounts shall immediately be due and payable and may exercise all other available rights and remedies under applicable law and equity. In the event of an Event of Default under paragraphs (c) or (d) above, all outstanding principal amounts and accrued but unpaid interest shall become, without action of the Investor, immediately due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Accredited Investor and Certificate of Investment Intent</u>. By acceptance of this Note, Investor hereby represents and warrants to the Company that Investor is an "accredited investor" within the meaning of Rule 501(a) of Regulation D promulgated under the Securities Act. Upon automatic conversion of the convertible obligations, if any and at the request of the Company, Investor shall execute and deliver to the Company any instrument, in form satisfactory to the Company, representing that the shares of Common Stock issuable upon such conversion are being acquired by Investor for investment and not with a view to distribution within the meaning of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Costs</u>. In the event the Investor of this Note incurs any reasonable cost or expense in enforcing or attempting to enforce this Note, in whole or in part, the Company agrees to pay the reasonable costs and expenses so paid or incurred by the Investor, including, without limitation, reasonable attorneys' fees and costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Assignment; Successors and Assigns</u>. This Note may not be assigned, sold, transferred, pledged, hypothecated or otherwise disposed of by the Investor without the prior written consent of the Company, which consent shall not be unreasonably withheld. This Note may not be assigned, sold, transferred, pledged, hypothecated or otherwise disposed of by the Company without the prior written consent of the Investor. The rights and obligations of the Company and the Investor of this Note shall be binding upon and benefit the permitted successors, assigns and transferees of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Waiver and Amendment</u>. Any provision of this Note may be amended, waived or modified only with the written consent of the Company and the Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Notices</u>. All notices required or permitted hereunder or under the Note Purchase Agreement shall be in writing and shall be deemed effectively given: (i) upon personal delivery to the party to be notified; (ii) when sent by confirmed telex or facsimile if sent during normal business hours of the recipient, if not, then on the next business day; (iii) three (3) business days after having been sent by registered or certified mail, return receipt requested, postage prepaid; or (iv) 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 Company or the Investor at their addresses in the Note Purchase Agreement or at such other address as the Company or the Investor may designate by ten (10) days advance written notice to the other.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Governing Law</u>. This Note and all actions arising out of or in connection with this Note shall be governed by and construed in accordance with the laws of the State of Minnesota, without regard to the conflicts of law provisions of the State of Minnesota or of any other state. The parties acknowledge and agree that the exclusive venue and jurisdiction of any dispute arising out of this Note shall be a federal or state court located in Dakota County, Minnesota.

IN WITNESS WHEREOF, the undersigned have hereunto affixed their signatures:

---

| | | | |
|:---|:---|:---|:---|
| **Investor:** |  | **Encore Medical, Inc.** | **Encore Medical, Inc.** |
| By: | /s/ Joseph A Marino | By: | /s/ Peter Buonomo |
| Print: | Joseph A Marino | Its: | Sr. Vice President |
| Address: | 2136 NW Diamond Creek Way | Print: | Peter Buonomo |
|  | Jensen Beach, FL 34957 |  | Encore Medical, Inc |
|  |  |  | 2975 Lone Oak Drive, Ste. 140 |
|  |  |  | Eagan, MN 55121 |

---

**Amount Received:** $150,000.00 **Date:** November 24, 2025

**Amount Received:** $50,000.00 **Date:** December 15, 2025

## Exhibit 10.9

**Exhibit 10.9**

**CONVERTIBLE PROMISSORY NOTE**

**THIS NOTE AND THE SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO THE CONSENT OF THE COMPANY AND (1) REGISTRATION IN COMPLIANCE WITH SUCH ACT AND SUCH STATE LAWS OR (2) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT SUCH REGISTRATION IS NOT REQUIRED.**

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Amount**: $100,000.00 | **Date**: December 10, 2025 |

---

FOR VALUE RECEIVED, the undersigned, Encore Medical, Inc., a Minnesota corporation (the "Company"), promises to pay to the order of **1915 Florida Investment Corp** or his/her permissible heirs and assigns (the "Investor"), the principal sum of **One Hundred Thousand Dollars** ($100,000.00), or such lesser amounts thereof as may be outstanding, plus a one-time initial fee equal to twenty percent (20%) of the principal sum indicated above, such fee equal to **Twenty Thousand Dollars** ($20,000.00), together with accrued interest on the outstanding amount at an annual rate equal to **10% per annum** in accordance with the terms and conditions of this Convertible Promissory Note (the "Note").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Repayment and Maturity Date</u>. All outstanding principal and interest on the Note shall, if not prepaid or converted pursuant to the terms hereof, be due and payable on June 30, 2026 (the "Maturity Date"), unless such date is extended by the Company and the Investor in writing as hereinafter provided. The Company and the Investor may mutually elect to extend the Maturity Date for an additional period of up to six (6) months ending on December 31, 2026 and, in such event, the extended date shall be deemed to be the "Maturity Date" for purposes of the Note; provided, however, that the parties shall evidence the extension of the Maturity Date in a written instrument executed by the parties prior to the original expiration thereof. The Note may be prepaid or redeemed in whole or in part at any time prior to the conversion thereof without penalty or premium of any kind. Upon payment in full of all outstanding obligations under the Note or the receipt by the Investor of the appropriate number of shares upon conversion of the Note as provided herein, the Company's obligations in respect of payment of the Note shall terminate and the Investor shall surrender the Note to the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Interest</u>. Interest shall accrue on the outstanding principal balance under this Note at a per annum interest rate equal to ten (10%) percent. All accrued interest under this Note shall be calculated on the basis of actual days elapsed commencing on the date the funds are advanced and received by the company and on the basis of a year consisting of three hundred sixty-five days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Payments and Prepayment</u>. All payments shall be made in lawful money of the United States of America at the address of the Investor set forth below, or at such other place as the Investor may from time to time designate in writing to the Company. Payment shall be credited first to costs, if any, incurred in accordance with Section 8 below, then to fees, accrued interest due and payable and any remainder applied to principal. The Company may prepay this Note without penalty or premium in whole or in part at any time by providing investor with written notice at least ten (10) days in advance of its intention to do so, during which ten day advance period investor may, at its sole option, convert such intended payment into shares of common stock of the Company in accordance with section 4 below. The Company hereby waives demand, notice, presentment, protest and notice of dishonor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4. <u>Conversion of Note</u>. The following terms and conditions shall apply to the Note:

&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 Note may, upon written notice to the Company by the Investor at any time prior to the Note's repayment in full, be converted into unregistered, fully paid nonassessable shares of Common Stock of the Company (the "Conversion Shares") at the conversion price of $5.00 per share on the applicable conversion date (the "Conversion Date"). The number of Conversion Shares issuable upon conversion shall be determined by dividing the unpaid amounts due under the Note by the Conversion Price, rounding any fractional result down to the nearest whole share. No fractional shares shall be issued upon conversion of the Note. In lieu of fractional shares, the Company shall pay cash (based upon the Conversion Price) equal to any fraction of a share remaining.

&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) On the Conversion Date, the Investor shall surrender the Note to the Company and a certificate representing the Conversion Shares shall be issued by the Company to and in the name of the Investor as of the Conversion Date along with a check in the amount of the cash payment, if any, due on account of any fractional 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;(c) Until the Conversion Date (and then only if this Note is converted into Conversion Shares in accordance with this Agreement), the Investor shall not be entitled to vote any such shares or receive any dividends, distributions or other considerations or rights as a shareholder of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5. <u>No Security</u>. This Note is unsecured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6. <u>Default</u>. Each of the following will constitute an "Event of Default" under the Note:

&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 Company shall fail to pay any amount of principal or interest on the Note when due.

&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 Company shall materially breach or fail to perform any of the covenants or agreements of the Company contained herein or in the Note Purchase Agreement, and such breach or failure to perform shall not have been cured by the Company within fifteen days after the Investor has provided written notice to the Company of such breach or failure to perform;

&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) The Company shall (i) apply for or consent to the appointment of a receiver, trustee, liquidator or custodian of itself or of all or a substantial part of its property, (ii) make a general assignment for the benefit of its or any of its creditors, (iii) be dissolved or liquidated in full or in part, (iv) commence a voluntary case or other proceeding seeking liquidation, reorganization or other relief with respect to itself or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect or consent to any such relief or to the appointment of or taking possession of its property by any official in an involuntary case or other proceeding commenced against 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;(d) Proceedings for the appointment of a receiver, trustee, liquidator or custodian of the Company or of all or a substantial part of the property thereof, or an involuntary case or other proceedings seeking liquidation, reorganization or other relief with respect to the Company or its debts under any bankruptcy, insolvency or other similar law or hereafter in effect shall be commenced and an order for relief entered or such proceeding shall not be dismissed or discharged within sixty (60) days of commencement; 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; (e) The Company shall wind up, liquidate or be dissolved.

If any Event of Default occurs, the Investor may declare all outstanding principal amounts and accrued but unpaid interest to be immediately due and payable, and upon such declaration such amounts shall immediately be due and payable and may exercise all other available rights and remedies under applicable law and equity. In the event of an Event of Default under paragraphs (c) or (d) above, all outstanding principal amounts and accrued but unpaid interest shall become, without action of the Investor, immediately due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Accredited Investor and Certificate of Investment Intent</u>. By acceptance of this Note, Investor hereby represents and warrants to the Company that Investor is an "accredited investor" within the meaning of Rule 501(a) of Regulation D promulgated under the Securities Act. Upon automatic conversion of the convertible obligations, if any and at the request of the Company, Investor shall execute and deliver to the Company any instrument, in form satisfactory to the Company, representing that the shares of Common Stock issuable upon such conversion are being acquired by Investor for investment and not with a view to distribution within the meaning of the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Costs</u>. In the event the Investor of this Note incurs any reasonable cost or expense in enforcing or attempting to enforce this Note, in whole or in part, the Company agrees to pay the reasonable costs and expenses so paid or incurred by the Investor, including, without limitation, reasonable attorneys' fees and costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Assignment; Successors and Assigns</u>. This Note may not be assigned, sold, transferred, pledged, hypothecated or otherwise disposed of by the Investor without the prior written consent of the Company, which consent shall not be unreasonably withheld. This Note may not be assigned, sold, transferred, pledged, hypothecated or otherwise disposed of by the Company without the prior written consent of the Investor. The rights and obligations of the Company and the Investor of this Note shall be binding upon and benefit the permitted successors, assigns and transferees of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Waiver and Amendment</u>. Any provision of this Note may be amended, waived or modified only with the written consent of the Company and the Investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Governing Law</u>. This Note and all actions arising out of or in connection with this Note shall be governed by and construed in accordance with the laws of the State of Minnesota, without regard to the conflicts of law provisions of the State of Minnesota or of any other state. The parties acknowledge and agree that the exclusive venue and jurisdiction of any dispute arising out of this Note shall be a federal or state court located in Dakota County, Minnesota.

IN WITNESS WHEREOF, the undersigned have hereunto affixed their signatures:

---

| | | | |
|:---|:---|:---|:---|
| **Investor:** |  | **Encore Medical, Inc.** | **Encore Medical, Inc.** |
| By: | /s/ David Yacullo | By: | /s/ Peter Buonomo |
| Print: | David Yacullo/Florida Invest Corp | Its: | Sr. Vice President |
| Address: | 19501 W. Country Club Drive, #2403 | Print: | Peter Buonomo |
|  | Aventura, FL 33180 |  | Encore Medical, Inc |
|  |  |  | 2975 Lone Oak Drive, Ste. 140 |
|  |  |  | Eagan, MN 55121 |

---

---

| | |
|:---|:---|
| **Amount Received:** $100,000 | **Date:** December 11, 2025 |

---

## Exhibit 23.1

**Exhibit 23.1**

![](tm2525595d4_ex23-1img001.jpg)

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We hereby consent to the inclusion of our report dated September 4, 2025 on the balance sheets of Encore Medical, Inc. as of December 31, 2024 and 2023, and the related statements of operations, changes in stockholders' equity (deficit), and cash flows for each of the years ended December 31, 2024 and 2023 contained in this Registration Statement of Encore Medical, Inc. dated December 29, 2025 and to the reference to our Firm under the caption "Experts" in the Prospectus included therein.

![](tm2525595d4_ex23-1img002.jpg)

Boulay PLLP

Minneapolis, Minnesota

December 29, 2025

**MN** Eden Prairie \| Mankato \| Minneapolis

BoulayGroup.com (t) 952.893.9320