Document:

EX-4.18

 Exhibit 4.18 

THIS AGREEMENT (the “Agreement”) is made on November 8th, 2013. 

BETWEEN: 
  

	(1)	Medifocus Inc., a company incorporated in Ontario, Canada (hereinafter referred as “Medifocus”); 

  

	(2)	Ideal Concept Group Limited, a company incorporated with limited liability in British Virgin Islands, whose registered office is at Akara Bldg., 24 De Castro Street, Wickhams Cay 1, Road Town, Tortola, British
Virgin Islands (hereinafter referred as “ICG”); and 

 WHEREAS: 

 

	(A)	Medifocus and ICG have agreed to form a Company for the sole purpose of conducting the Business in Asia Pacific. Particulars of the Company are set out in Schedule 1. 

 

	(B)	This Agreement sets out the terms and conditions under which Medifocus and ICG will cause the Company to be incorporated and sets forth the financial, managerial and other arrangements agreed between Medifocus and ICG
relative to the ownership and operation of the Company and the manner in which the affairs of the Company will be conducted. 

 NOW THEREFORE,
for good and valuable consideration, the parties, intending to be legally bound, hereby agree as follows: 
  

	1.	Interpretation 

  

	1.1	In this Agreement, unless the context otherwise requires, the following expressions shall have the following meanings: 

					
			
		 	“Approval”	  	Means the prior written approval of the party in question.
			
		 	“the Board”	  	The Board of Directors of the Company or the Directors present at any meeting of the Directors duly convened and held.
			
		 	“Business”	  	Means the performance by the Company of clinical testing with respect to and obtaining CFDA approval for, as well as the production, marketing and distribution by the Company of, the Captioned Technologies and their Related Products
in the Asia Pacific.

					
			
		 	“the Captioned Technologies and their Related Products”	  	Means all (whether owned or licensed by Medifocus) and products relating to Prolieve and all system using APA technology to provide cancer treatment or thermodynamic therapies for all medical conditions, as well as any technologies
or products related thereto that are developed by Medifocus from time to time in the future, and licensed to the Company pursuant to the License and Distribution Agreement.
			
		 	“CFDA”	  	Means the China Food and Drug Administration of the PRC.
			
		 	“the Company”	  	The company incorporated in British Virgin Islands under the name Medifocus Holding Limited, with 50,000 authorized shares, par value of USD $0.01per share and 1000 issued shares. The management of the Company will be based in Hong
Kong.
			
		 	“Director”	  	A director of the Company, including where applicable an alternate director.
			
		 	“HKSAR”	  	Means the Hong Kong Special Administrative Region.
			
		 	“Holding Company”	  	A company fulfilling the requirements of Section 2(7) of the Companies Ordinance, Chapter 32 of the Laws of Hong Kong and notwithstanding that it may have been incorporated in a jurisdiction other than the HKSAR.
			
		 	“Intellectual Property Rights”	  	Means registered or unregistered patents, trademarks, designs, utility models, copyrights (including design copyrights), discoveries, creations, inventions, methods, techniques, patterns, compilations, software, hardware, technical
data, data compilations, devices, specifications, processes, formulae, know-how, or any improvements upon or additions thereto, and any other intellectual property rights and any research effort relating to
any of the foregoing, applications for any of the foregoing, and business names whether registerable or not.
			
		 	“the License and Distribution Agreement”	  	The License and Distribution Agreement in the form of Exhibit “B” entered into between Medifocus and the Company simultaneously with the execution of this Agreement.
			
		 	“the Memorandum and Articles”	  	The Memorandum and Articles of Association of the Company in the form of Exhibit “A”.

  
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		 	“Person”	  	Includes any person, firm, entity, company, corporation, government, state or agency of a state, or any association or partnership (whether or not having separate legal personality), or one or more of the foregoing.
			
		 	“PRC”	  	Means the People’s Republic of China.
			
		 	“Shareholder”	  	Medifocus or ICG, as the context may require, or their respective permitted transferees as the context may require.
			
		 	“the Shareholders Loans”	  	Any loans to the Company made by a Shareholder pursuant to either Section 3.1.2 or Section 7.1 hereof.
			
		 	“Shares”	  	Shares of the Company
			
		 	“Subsidiary”	  	A company fulfilling the requirements of Section 2(4), (5) and (6) of the Companies Ordinance, Chapter 32 of the Laws of Hong Kong notwithstanding that it may have been incorporated in a jurisdiction other than the HKSAR.
			
		 	“Asia”	  	Means all countries within Asia Pacific.

  

	1.2	References to ordinances and to statutory provisions shall be construed as references to those ordinances or statutory provisions as respectively amended or re-enacted or as their
application is modified by other provisions (whether before or after the date hereof) from time to time, and shall include any provisions of which there are re-enactments (whether with or without
modification). 

  

	1.3	Words importing the singular only shall include the plural and vice versa, and words importing natural persons shall include corporations and unincorporated associations, and words importing the masculine gender only
shall include the feminine gender and the neuter gender and vice versa. 

  

	1.4	References to clauses, sub-clauses and annexures are to clauses and sub-clauses of and annexures to this Agreement; the clause headings and
index in this Agreement do not form part of this Agreement and are inserted for convenience only and shall not affect the interpretation or construction of this Agreement. 

 

	2.	Formation; Name; Business 

  

	2.1	The parties hereby agree to form the Company to own and operate the Business in the Asia Pacific. 

  
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	 	  	The Business of the Company shall be to: 

  

	 	(1)	Perform clinical trials, collect data, and obtain CFDA approval with respect to the Captioned Technologies and Related Products in China and potentially other countries within Asia Pacific. 

 

	 	(2)	Produce, market and distribute the Captioned Technologies and Related Products in the Asia Pacific pursuant to the terms of the License and Distribution Agreement. 

 

	 	(3)	Locate licensing partner for distribution into countries where 

  

	2.2	The business and affairs of the Company shall be conducted under the name of Medifocus Holding Limited, or such other name or names as the Shareholders may from time to time agree. The principal office of the Company
shall be located at (TBD). The Shareholders may change the location of the principal office and establish such additional offices as they may from time to time mutually agree. 

 

	2.3	The relationship between the Shareholders shall be limited to the conduct and operation of the Business of the Company in accordance with the terms of this Agreement and the Memorandum and Articles of Association. Such
relationship shall be construed and deemed to be a joint venture for the limited business purposes specified herein, and shall not be deemed to create a joint venture, partnership or agency relationship between the Shareholders with respect to any
activities whatsoever or any purpose other than those specified herein. 

  

	3.	Preliminary Matters Concerning the Company 

  

	3.1	Immediately upon the execution of this Agreement: 

  

	 	3.1.1	The shareholders collectively will contribute paid-up capital in the amount of One Hundred Thousand Dollars (HKD) ($100,000) and a shareholder advance in the amount of Four Million (CAD) ($600,000) base on their
shareholding. The company will issue the equivalence of 40% shares to Medifocus and 60% shares to ICG. For a 12-month period starting from the execution of this Agreement, ICG agrees to make loans to Medifocus solely for the purpose as
Medifocus’ portion of the capital contribution in Medifocus Holding Limited. Such loans will bear an annual interest rate of six percent and will be collateralized by Medifocus’ equity ownership in Medifocus Holding Limited, excluding the
ten percent (10%) anti-dilutive equity described in Paragraph 3.1.5 below. 

  
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	 	3.1.2	No Shareholder shall receive any interest, compensation or distributions with respect to its capital contribution, for services rendered on behalf of the Company, or otherwise in its capacity as a Shareholder, except as
specifically provided in this Agreement, the Memorandum and Articles of Association or the License and Distribution Agreement. 

  

	 	3.1.3	Under circumstances requiring a return of any capital contribution, no Shareholder shall have the right to receive property other than cash, unless specifically determined by the Board. 

 

	 	3.1.4	No Shareholder shall be required to make any additional capital contributions to the Company, or to lend any additional funds to the Company, except as mutually agreed by the Shareholder and the Company in the future.

  

	 	3.1.5	Medifocus will maintain a 10% anti-dilutive equity in the Company until the time of initial public offering. 

  

	4.	Management; Responsibilities and Rights of the Parties 

 The principal
responsibilities with respect to the day to day operational management of the Company shall generally be divided and allocated between the Shareholders as follows: 
  

	4.1	Medifocus shall have primary responsibility for the following: 

  

	 	4.1.1	to grant an exclusive license to the Company to distribute and market the Captioned Technologies and their Related Products in Asia Pacific, pursuant to the terms and conditions of the License and Distribution
Agreement; 

  

	 	4.1.2	to apply for, prosecute, and maintain all patents and other Intellectual Property Rights for the Captioned Technologies and their Related Products, whether inside or outside Asia Pacific; Medifocus shall retain the
unconditional and exclusives rights to such patents and other Intellectual Property Rights. 

  

	 	4.1.3	to direct and manage all research and development and testing activities for the Captioned Technologies and their Related Products in the Asia Pacific; 

 

	 	4.1.4	to appoint and authorize the Company as its agent for the purpose of performing clinical testing with respect to and obtaining CFDA approval for the Captioned Technologies and their Related Products in the Asia Pacific;

  
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	 	4.1.5	to provide on-site and off-site technical support and periodic training to the staff in the Company as and when reasonably required from
time to time (in relation to distribution and marketing of the Captioned Technologies or otherwise); and 

  

	 	4.1.6	to create alliance with Universities and Government Agencies within the region for further research and development. 

  

	4.2.	ICG shall have primary responsibility for the following: 

  

	 	4.2.1	procure the incorporation of the Company; 

  

	 	4.2.2	create a business plan evaluating the business opportunity for Medifocus’ products in the Asia Pacific Region; 

  

	 	4.2.3	identify and secure reputable company advisor for the application of relevant regulatory approval and commercialization of the product; 

 

	 	4.2.4	with the cooperation of the Board, procure the Company to perform clinical trials in consultation with and upon the Approval of Medifocus (acting reasonably), and to obtain CFDA approval for the Captioned Technologies
and their Related Products in China; 

  

	 	4.2.5	with the cooperation of the Board, procure the Company to market, distribute, and sell the Captioned Technologies and their Related Products in Asia Pacific in accordance with the terms and conditions of the License and
Distribution Agreement; 

  

	 	4.2.6	The Company may assist Medifocus to identify/secure OEM manufactures for the products but the Company will not have the rights to the manufacturing of the products unless it’s authorized by Medifocus in the future.

  

	 	4.2.7	with the cooperation of the Board, manage the cash flow of the Company, use commercially reasonable efforts to procure future funding for the Business, and otherwise to assist the Company in developing markets for the
Captioned Technologies and their Related Products in Asia Pacific. 

  

	4.3	 Prior to the beginning of each fiscal year of the Company, ICG shall develop and propose an operating budget, and a development and marketing plan for
the Captioned Technologies and their Related Products, for such fiscal year, and submit such budget for the review and approval of the Board. Neither 

  
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Shareholder shall incur expenses on behalf of the Company that are not provided for in the budget or undertake activities not generally contemplated in the development and marketing plan without
the approval of the other Shareholder or the Board. 

  

	4.4	ICG shall maintain or cause to be maintained complete and accurate books of account for the Company at the principal office of the Company. The books shall be maintained on the accrual basis of accounting and shall be
closed and balanced at the end of each fiscal year by the certified public accountants regularly used by the Company. Subject to confidentiality obligation hereunder, each Shareholder shall have unrestricted access to such books of account and shall
have access, upon request, to true and complete information with respect to all matters affecting the Company. 

  

	4.5	The Shareholders shall cause the Company to obtain and maintain in full force and effect during the term of this Agreement, at the expense and for the benefit of the Company, product liability insurance and such other
property and liability insurance, in favor of the Company, with such insurer in such amounts as the Board deems advisable. 

  

	4.6	With the cooperation of the Board, ICG shall cause the annual income tax information and any required tax returns to be prepared and provided to each Shareholder not later than six months after the end of each year, to
enable each Shareholder to file its tax returns on a timely basis. 

  

	4.7	A bank account or accounts shall be maintained in such bank or banks as may be mutually agreed by the Shareholders from time to time. All funds of the Company shall be deposited in such account or accounts, and all
withdrawals therefrom shall be made upon the policies and procedures established by the Board and in accordance with the budget Approved by the Board. In no event may any Company bank account be used for payment of any expenses of a Shareholder that
are not related to the Business of the Company. 

  

	  	Neither Shareholder shall, without the Approval of the Board or the other Shareholder, take any action on behalf of or in the name of the Company, or enter into any commitment or obligation binding upon the Company,
unless authorized in accordance with the terms hereof. Each Shareholder shall indemnify and hold harmless the other Shareholder and its affiliates, stockholders, directors and officers from and against any and all claims, demands, losses, damages,
liabilities, lawsuits and other proceedings, judgments, awards, costs and expenses (including but not limited to reasonable attorneys’ fees) arising from or related to a breach of any of the provisions of Section 4.3 or this
Section 4.7 by such Shareholder or any of its affiliates, officers, employees or agents. 

  
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	5.	Board of Directors 

  

	5.1	The final authority and control over the business and affairs of the Company shall be vested in the Board of Directors. The Company shall have five (5) Directors. ICG being the majority shareholders shall be
entitled to appoint three (3) Directors with the corresponding right to remove and replace any such Director so appointed by it and to fill any vacancy which may occur with respect to any Director so appointed. Medifocus with its 40% shares in
the Company shall be entitled to appoint two (2) Directors with the corresponding right to remove and replace any such Director so appointed by it and to fill any vacancy which may occur with respect to any Director so appointed. Subject to
applicable laws, any such appointment, removal and/or replacement of a Director shall be effective upon written notice thereof having been given to the Company at its registered office. 

 

	5.2	The quorum for a meeting of the Board shall be three (3) Directors present in person or by phone, of whom at least one shall be a nominee of Medifocus, one a nominee of ICG. 

 

	5.3	Decisions of the Directors shall be by majority vote and, in the case of an equality of votes at a meeting of the Board, the chairman shall not be entitled to a second or casting vote. 

 

	5.4	Simultaneously with the execution of this Agreement, the Shareholders shall appoint their respective nominees to constitute the initial Board of the Company, who shall manage the Company and approve all matters related
thereto (unless delegated to the management of the Company), including but not limited to approval of the following: 

  

	 	5.4.1	the issuance of the subscribers’ shares referred to in Section 3.1.1 above; 

  

	 	5.4.2	the Memorandum and Articles of the Company; 

  

	 	5.4.3	the issuance of appropriate Share Certificates under the Common Seal of the Company; 

  

	 	5.4.7	the execution of the License and Distribution Agreement by the Company; 

  

	 	5.4.8	the location of the Company’s principal business address and its registered office at Akara Bldg., 24 De Castro Street, Wickhams Cay 1, Road Town, Tortola, British Virgin Islands; 

 

	 	5.4.9	The establishment of the Company’s financial year to end on 31st December in each year. 

  
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	5.5	The Board shall meet at least annually to discuss the business of the Company. If convening the entire Board in person is not practicable at any time, the Board may meet by teleconference. The first Board meeting will
be held before 31st January 2013. 

  

	5.6	The Shareholders agree that no action shall be taken, obligation incurred, or money spent with respect to any of the following major decisions (the “Major Decisions”) concerning the Company unless the same has
been Approved by Medifocus and ICG: 

  

	 	(i)	the terms of any manufacturing agreement between the Company and a third party to manufacture all or any portion of the Captioned Technologies or Related Products; 

 

	 	(ii)	the Company’s basic pricing strategy for sale of the Captioned Technologies or Related Products to third party purchasers (the parties recognizing that pricing strategies may need to be flexible to respond to the
various markets); 

  

	 	(iii)	any investments in capital equipment by the Company in excess of twenty percent of the paid-up capital of the Company not specifically included in the annual budget; 

 

	 	(iv)	sublicense by the Company to any third party of any of the technology licensed to the Company, and/or any agreement to permit any third party to market any Captioned Technologies or Related Products in the Asia Pacific;

  

	 	(v)	any decision to market products other than the Captioned Technologies or Related Products or to engage in any business other than the Business; 

 

	 	(vi)	any issuance of stock of the Company except for issuance of stock options and issuance of underlying shares or other incentive shares to management of the Company; 

 

	 	(vii)	hire or appoint the Scientific Director, general manager or any other senior staff member of the Company; 

  

	 	(viii)	acquire by lease or purchase, or sell, transfer, assign, mortgage, lease or exchange, or any other real or personal property necessary or advisable for the operation of the Business having a value, or requiring a
commitment or expenditure in excess of twenty percent of the paid-up capital of the Company ; 

  
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	 	(ix)	borrow money or issue evidence of indebtedness on behalf of the Company, or refinance, modify or extend any indebtedness of the Company, or pledge or lien assets of the Company in connection therewith;

  

	 	(x)	dissolve or terminate the Company; 

  

	 	(xi)	sell, transfer or otherwise dispose of all or substantially all of the assets of the Company other than sales, transfers or other dispositions in the ordinary course of the business of the Company; 

 

	 	(xii)	waive or compromise any right or claim of the Company; 

  

	 	(xiii)	enter into any contract, license, lease or other Agreement with any Person that is an affiliate or related party of a Shareholder; 

  

	 	(xiv)	the formation or creation of any affiliate or Subsidiary or acquisition of any Person or allowing any Person to become a Subsidiary; or 

 

	 	(xv)	any other act inconsistent with the terms of this Agreement. 

  

	6.	Staff 

  

	6.1	The Company shall recruit and employ such staff as the Board considers necessary for the proper conduct of the Business. 

  

	7.	Finance 

  

	7.1	The working capital requirements of the Company will be met from time to time, as the Directors may resolve from time to time, from the net operating profit of the Company, private equity placement and initial public
offering of the Shares under the Hong Kong Stock Exchange or other stock exchanges as the Board may approve, or commercial loans from third party lenders. If none of these sources of working capital are available on commercially reasonable terms,
the Company may request that for a Shareholders loan to the Company on such terms and conditions as the Company and the Shareholders mutually agree. Any request from the Company for loans from the Shareholders shall be made the same in all respects
to each Shareholder. The decision of whether or not it desires to loan funds to the Company shall be in the sole and absolute discretion of each Shareholder. 

  
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	7.2	To the extent that guarantees or other securities are required from the Shareholders in respect of any borrowings by the Company, such may be furnished by the Shareholders severally on terms acceptable to each
Shareholder but, in the event the Shareholders shall, nevertheless, agree that joint and several guarantees or other securities are required, they shall be given upon terms that, as among the Shareholders, each of them shall bear same liability (if
any) thereunder and each of them shall indemnify and hold harmless the others from and against any loss, cost, damage or expense suffered or made by the others in consequence of a claim being made against the others in respect of more than the
relevant proportion of any such liability. 

  

	8.	Issuance of Shares 

  

	8.1	The issue of each new Share shall be regulated in accordance with the provisions in this Agreement and the Articles. 

  

	9.	Dealings in and Transfer of Shares 

  

	9.1	Each Shareholder undertakes that it will not: 

  

	 	9.1.1	grant any option over or otherwise voluntarily or involuntarily pledge, lien or encumber, the legal and/or beneficial interest in its Shares, except with the Approval of the other Shareholders (which Approval shall be
in the sole and absolute discretion of each such Shareholder). 

  

	 	9.1.2	sell or transfer its legal or beneficial interest in the Shares except in accordance with the provisions of the Articles, which shall provide that if a Shareholder desires to transfer its Shares to a third party, the
Shareholder shall first offer in writing to sell the Shares to the other Shareholder on the terms on which the Shareholder proposes to transfer the Shares to the third party transferee and such terms shall be expensed in cash only. The other
Shareholder shall then have sixty (60) days after receipt of the offer to provide written notice to the transferring Shareholder of its desire to purchase the Shares on the offered terms. Provided, that if any Shareholder declares bankruptcy or
is adjudicated bankrupt (the “Bankrupt Shareholder”), each of the other Shareholders, in accordance with its pro rata share shall have the option, exercisable by notice to the Bankrupt Shareholder (or its representative) at any time prior
to the 180th day after receipt of notice of the occurrence of the event causing it to become a Bankrupt Shareholder, to purchase the Bankrupt Shareholder’s Shares at a price equal to the fair market value of such Shares (as determined by the
Company’s independent accountants, in their sole and absolute discretion). 

  
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	9.2	The provisions of Section 9.1.2 shall not apply to a transfer of all (but not part only) of its holding of shares by a Shareholder to its Holding Company or its Holding Company’s wholly owned Subsidiary,
provided that the transferring Shareholder proves to the reasonable satisfaction of the other Shareholder hereunder, that the proposed transferee has comparable financial resources to fulfill its obligations hereunder as the transferring
Shareholder. Any shares transferred in accordance with this Section 9.2 shall be transferred back to the original transferring Shareholder if the relationship between the holder of such shares and the original transferring Shareholder ceases to
be within the scope of this Section 9.2. In addition, nothing contained herein shall be construed to prohibit, otherwise restrict, or require the consent of a Shareholder, to a change in ownership control of the other Shareholder, or the
transfer by a Shareholder of all or substantially all of its assets, and the corresponding transfer of the Shares resulting therefrom. 

  

	9.3	In the event that a Shareholder elects to sell or transfer (the “Selling Shareholder”) all or a portion of the Shares owned by it (other than as provided in Section 9.2 and after giving effect to
Section 9.1) (the “Tagged Shares”), such party must provide notice of such election (including the amount of Shares and the terms, including price, upon which such Tagged Shares are to be sole or transferred and the proposed date of
such sale or transfer) to the remaining Shareholders (each a “Non-Selling Shareholder”) at least thirty (30) days prior to the date of such sale or transfer. Upon receipt of notice, each Non-Selling Shareholder may elect, to
participate in such sale or transfer by giving notice to the Selling Shareholder at least ten (10) days prior to the expiration of the thirty (30) day period. After receipt of such notice, the Selling Shareholder shall not effect such sale
or transfer unless either (i) the proposed transferee of the Tagged Shares offers to purchase from any Non-Selling Shareholder, at the same price and terms as the Tagged Shares, that amount of Shares owned by the Non-Selling Shareholder which
bears the same proportion to the total amount of Shares owned by the Non-Selling Shareholder, as the amount of Tagged Shares being sold or transferred by the Selling Shareholder bears to the total amount of Shares owned by the Selling Shareholder,
or (ii) the amount of such Non-Selling Shareholder’s Shares and the amount of Tagged Shares, shall each be reduced proportionately to equal the total amount of Shares to be purchased by the proposed transferee. 

 

	9.5	If at any time a Selling Shareholder desires to sell or transfer all of its Shares in one or a series of related transactions (other than as provided in Section 9.2 and after giving effect to Section 9.1),
then the Selling Shareholder may require the Non-Selling Shareholder and any other Shareholder to sell or transfer all of its Shares at the same price and terms than those received by the Selling Shareholder. A transaction subject to this
Section 9.5 can take the form of a sale of stock, a merger or consolidation, a sale of substantially all of the assets of the Company or otherwise. 

  
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	9.6	Any transfer of Shares, shall be conditioned upon the transferee executing a counterpart of this Agreement, whereby the transferee shall agree to be bound by and to observe and perform each of the terms and conditions
of this Agreement. 

  

	9.7	All certificates representing the Shares shall bear a legend stating that the Shares represented by such certificates are subject to restriction of transfer and the provisions of this Agreement. 

 

	10.	Exercise of Voting Rights 

  

	10.1	Each Shareholder shall: 

  

	 	10.1.1	exercise all voting rights and powers available to it in relation to the Company so as to give full effect to the terms of this Agreement including, where appropriate, the carrying into effect of the terms as if they
were embodied in the Memorandum and Articles; 

  

	 	10.1.2	generally use all commercially reasonable efforts to promote the Business and the interests of the Company and its Subsidiaries; and 

 

	11.	Non-competition Restriction and Non-disclosure of Information 

 

	11.1	Neither Shareholder nor any of its Subsidiaries shall while it or any of its Subsidiaries holds Shares [and 6 months thereafter], directly or indirectly, either on its own behalf or in the capacity of owner, consultant,
joint venture partner or member of another company, corporation, firm or other entity, conduct, operate, provide products or services, or be concerned or interested in any business, that competes, whether directly or indirectly, with the Business of
the Company in the Asia Pacific. 

  

	11.2	 Neither of the Shareholders (nor any of their respective directors, officers, or employees) shall disclose or divulge to any Person (other than
employees or consultants of the Company or the Shareholders who have a need to know and who have executed appropriate confidentiality agreements) use for any purpose in competition with the Company or such other Shareholder, or transfer or sell on
their own behalf or on behalf of others, any of the trade secrets, information relating to any of the Intellectual Property Rights, or customer, marketing, financial, or other proprietary and confidential information of the other Shareholder, the
Company or any of its Subsidiaries, that it acquires as a result of entering into this Agreement or otherwise in its capacity as a Shareholder or director of the Company (the “Confidential Information”). Each Shareholder shall use all
commercially reasonable efforts to prevent its employees from doing anything which, if done by the Shareholder, would be a breach of this 

  
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Section 11.2. This restriction shall continue to apply after the expiration or termination of this Agreement without limit in point of time but shall cease to apply to secrets or information
which come into the public domain through no fault of the Shareholder concerned. Notwithstanding the above, if any Shareholder is required by applicable law or court order to disclose any of the Confidential Information, such Shareholder shall
immediately notify the other Shareholder of such requirement to disclose so that such other Shareholder may take necessary action to obtain relief from such disclosure requirement under applicable law or court order and two days after such
notification to the other Shareholders, the Shareholder required under applicable law or court order may disclose the Confidential Information as requested. 

  

	12.	Warranties and Undertakings 

  

	12.1	Each Shareholder specifically warrants to and undertakes to the other Shareholder that: 

  

	 	12.1.1	it shall take or cause to be taken all commercially reasonable action necessary with respect to the conduct of the affairs of the Company (including, but without prejudice to the generality of the foregoing, the giving
of all necessary directions to its nominees on the Board and the convening of and voting at general meetings of the Company) to ensure that full and complete effect is given to the provisions of this Agreement; 

 

	 	12.1.2	it is duly incorporated and validly existing under the laws of the country of its incorporation; it has power to execute, deliver and perform its obligations under this Agreement; all necessary corporate, shareholder
and other action has been taken to authorize its execution, delivery and performance of this Agreement; and this Agreement constitutes its valid and legally binding obligations in accordance with its terms; and 

 

	 	12.1.3	neither the execution of this Agreement or the License and Distribution Agreement, nor the performance of its obligations thereunder, conflicts with or will result in the breach of any of the terms or conditions of, or
constitutes a default under, any agreement, indenture, contract or undertaking to which the Shareholder is a party or by which it is bound. 

  

	 	12.1.4	as to Medifocus, Medifocus represents and warrants the Intellectual Property Rights relating to the Captioned Technologies and Related Products are owned or licensed by Medifocus and Medifocus has the right to grant an
exclusive license to the Company as contemplated in Section 4.1.1 above; 

  
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	12.2	Each Shareholder agrees that it shall refer all inquiries and general business opportunities relating to the Business in the Asia Pacific to the Company. 

 

	13.	Dividends and Financial Information 

  

	13.1	It is the intention of the Shareholders that subject to prudent retention of profits by way of reserve and the Company’s working capital requirements as determined by the Board, fifty percent (50%) of the
profits of the Company available for distribution (after tax has been deducted) shall be distributed by way of dividend annually to each Shareholder, unless otherwise mutually agreed between the Shareholders. 

 

	13.2	In addition to its annual audited financial statement, the Company shall produce monthly unaudited balance sheets and financial and operating reports, all prepared on generally accepted accounting principles.

  

	14.	Dissolution 

 The Company shall only be dissolved upon the occurrence of one of
the following events: 
  

	 	(1)	the mutual agreement of the Shareholders; 

  

	 	(2)	the sale or disposition of all or substantially all of the assets of the Company pursuant to Section 5.6; 

  

	 	(3)	the occurrence of any events causing the dissolution of the Company under the laws of British Virgin Islands; or 

  

	 	(4)	if a Shareholder fails to perform any of its material obligations under this Agreement after being given one hundred and twenty (120) days written notice of such failure and an opportunity to cure such failure.

 The Shareholders shall mutually determine a plan for liquidating the Company’s assets and debts within sixty
(60) days after the Company dissolves. The Shareholders shall act jointly to liquidate the assets of the Company and shall apply and distribute the proceeds thereof in the following order: 

 

	 	(1)	First, to the payment of debts and liabilities of the Company to third party creditors; 

  

	 	(2)	Second, to the payment of any debts or liabilities to Shareholders; 

  
 15 

	 	(3)	Third, to the establishment of any reserves that the Shareholders deem reasonably necessary for contingent or unmatured liabilities or obligations of the Company; and 

 

	 	(4)	Fourth, the balance of any cash or property available for distribution shall be distributed in equal amounts to each Shareholder. 

Upon dissolution of the Company, any licenses held by the Company to use technology shall automatically terminate, and the parties that
licensed such technology to the Company shall have the complete, unconditional right to use, license and commercialize such technology as if such license did not exist. Upon dissolution of the Company, neither Shareholder shall use any technology
owned or developed by the other Shareholder except to extent permitted under the terms of a separate written agreement executed by the parties at that time governing such use. Upon the completion of the liquidation of the assets of the Company, this
Agreement shall terminate, except for obligations of a Shareholder to the other Shareholder arising from branch of its obligations arising on or before the completion of the liquidation of the assets of the Company. 

 

	15.	Protection of a Name 

  

	15.1	Neither of the Shareholders shall, while the Company or its Subsidiaries carry on the Business, use or permit the use of the name Medifocus Holding Limited by any Person other than the Company or its Subsidiaries.

  

	16.	Nature of this Agreement 

  

	16.1	None of the provisions of this Agreement shall be deemed to constitute a partnership among the Shareholders and neither Shareholder has the authority to legally bind the other Shareholder in any way. 

 

	17.	Costs and Expenses 

  

	17.1	All costs, legal fees and other expenses incurred by a Shareholder in the preparation and execution of this Agreement shall be borne by such Shareholder. 

 

	17.2	All costs, legal fees, registration fees and other expenses incurred in the formation of the Company shall be borne by the Company. 

  

	17.3	All expenses incurred on behalf of the Company should have prior written approval from the Company’s CEO or Financial Controller via email. After the cost is incurred, each shareholder has 90 days to file the
relevant receipt with the Company’s office. Reimbursement payment should be made no later than 60days from filing date. 

  
 16 

	18.	Restrictions on Assignment 

  

	18.1	Neither Shareholder shall be entitled to assign or transfer any of its rights or obligations hereunder, in whole or in part, except to the extent that a transferee becomes a Shareholder of the Company in accordance with
the provisions of this Agreement and the Articles of Association of the Company. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 

 

	19.	Governing Law 

  

	19.1	This Agreement shall be governed by and construed in accordance with the laws of British Virgin Islands. 

  

	19.2	Any provisions of this Agreement that are prohibited by or are unlawful or unenforceable under any applicable law actually applied by any court of competent jurisdiction shall, to the extent required by such law, be
severed from this Agreement and this Agreement shall be considered so revised and limited. Where, however, the provisions of any such applicable law may be waived, they are hereby waived by the Shareholders to the full extent permitted by such law
to the extent necessary to cause this Agreement to be a valid and binding agreement, enforceable against each party hereto in accordance with its terms. 

  

	20.	Entire Agreement 

  

	20.1	This Agreement (together with the schedules attached hereto) contains all the terms and conditions agreed between the Shareholders as to the subject matter hereof and supersedes and cancels, in all aspects, all previous
letters of intent, correspondence, undertakings, agreements, undertakings and arrangements (if any) between the Shareholders with respect to the subject matter hereof, whether written or oral. 

 

	21.	Prevalence of this Agreement 

  

	21.1	 In the event of any ambiguity or conflict arising between the terms of this Agreement and those of the Memorandum and Articles, the terms of this
Agreement shall prevail as among the Shareholders but not as to amend the Memorandum or Articles. However the Shareholders agree with each other that 

  
 17 

	 	
they shall as soon as practical cause the Memorandum or Articles to be amended (to the extent permitted by law) so that the conflict with the terms of this Agreement ceases to exist.

  

	21.2	In the event of any ambiguity or conflict arising between the terms of this Agreement and those of the Memorandum of Understanding, the terms of this Agreement shall prevail as among the Shareholders. 

 

	22.	Notices 

  

	22.1	All notices required to be given under this Agreement or in connection herewith shall be in writing delivered personally or by certified or registered mail, return receipt requested, by facsimile or telex, or by
international courier service that provides evidence of delivery, and shall be deemed given when actually delivered to the party to whom the notice is addressed at its latest address, fax number or telex (as applicable). Any notice to a Shareholder
or to the Company shall be sufficiently served if sent to its above stated address or its registered office in Hong Kong or to such other address as either party shall designate in writing to the other party from time to time. 

 

	23.	Dispute Resolution 

  

	23.1	The parties recognize that irreparable injury will result from a breach of any provision of this Agreement and that money damages will be inadequate to fully remedy the injury. Accordingly, in the event of a breach or
threatened breach of one or more of the provisions of this Agreement, any party who may be injured (in addition to any other remedies which may be available to that party) shall be entitled to one or more preliminary or permanent orders
(i) restraining and enjoining any act which would constitute a breach or (ii) compelling the performance of any obligation which, if not performed, would constitute a breach, along with any other rights or remedies it may have, at law or
in equity. 

  

	23.2	 Except for the right of either party to seek specific performance or injunctive relief pursuant to Section 23.1 hereof, in the event of a breach
by the other party of its obligations hereunder, any dispute, controversy, or claim arising out of or relating to this Agreement shall be settled by arbitration in accordance with the commercial arbitration rules of the International Chamber of
Commerce (“ICC”) (or any similar successor rules thereto) as are in force on the date when a notice of arbitration is received. The appointing authority shall be the ICC. The notice of arbitration shall specifically describe the claims,
disputes, or other matters in issue that are being submitted to arbitration. The number of arbitrators shall be [one]. The language to be used in the proceedings shall be English. The place of arbitration shall be mutually agreed by the
parties and if the parties fail to agree, it 

  
 18 

	 	
shall be Hong Kong. The decision of the arbitrator shall be final and binding upon the parties, and such decision shall be enforceable through any courts having competent jurisdiction. The costs
and expenses of arbitration shall be allocated and paid by the parties as determined by the arbitrator. Both parties agree to use their best efforts to cause a final decision to be rendered with respect to the matter submitted to arbitration within
sixty (60) days after is submission. 

  

	24.	Counterparts 

  

	  	This Agreement may be executed in two or more counterparts and by facsimile, each of which shall be deemed an original and all of which together shall constitute one and the same document. 

(Signatures on following page) 

  
 19 

 AS WITNESS the hands of the duly authorized representatives of Medifocus Inc., Ideal Concept Group Ltd the date
first above written. 
  

			
	SIGNED BY	 	)/S/ Augustine Y. Cheung
	for and on behalf of	 	)
	Medifocus Inc.	 	)
	in the presence of:	 	)/S/ Douglas Liu
		
	SIGNED BY	 	)/S/ Michael Tse
	Ideal Concept Group Ltd	 	)
	in the presence of:	 	)/S/ Douglas Liu

  
 20 

 SCHEDULE 1 

 

									
	1.	  	Name	  	:	  	Medifocus Holding Limited
				
	2.	  	Date of incorporation	  	:	  	TBD
				
	3.	  	Country of incorporation	  	:	  	British Virgin Island
				
	4.	  	Company Number	  	:	  	TBD
				
	5.	  	Registered office	  	:	  	TBD
				
	6.	  	Authorised share capital	  	:	  	50,000
				
	7.	  	Issued share Par value UD$0.01 per share	  	:	  	1,000
					
	8.	  	Shareholders and their shares	  	:	  	 Medifocus Inc.
 Ideal Concept Group
Limited
	  	 40%
 60%

		  		  		  		  	
	9.	  		  		  	

  
 21 

 EXHIBIT “A” 

[Memorandum and Articles of Association of the Company to be attached here] 

  
 22 

 EXHIBIT “B” 

[Licensing Agreement to be entered into between Medifocus and the Company to be attached here] 

  
 23 

 EXHIBIT “C” 

[A list of the Captioned Technologies and their Related Products to be provided by Medifocus to be attached here] 

  
 24EX-4.19

 Exhibit 4.19 

LICENSE AND DISTRIBUTION AGREEMENT 

between 
 MEDIFOCUS INC

 and 
 MEDIFOCUS
HOLDING LIMITED (BVI) 

 TABLE OF CONTENTS 

 

											
	 	 	 	 	 	 	 	  	Page	 
			
	ARTICLE I	 	DEFINITIONS	  	 	1	  
					
		 	SECTION 1.01	 		 	 CERTAIN DEFINED TERMS
	  	 	1	  
			
	ARTICLE II	 	MARKETING AND DISTRIBUTION	  	 	5	  
					
		 	SECTION 2.01	 		 	 GRANT OF RIGHTS
	  	 	5	  
		 	SECTION 2.02	 		 	 PERFORMANCE
	  	 	5	  
		 	SECTION 2.03	 		 	 COMPETITIVE PRODUCTS
	  	 	6	  
		 	SECTION 2.04	 		 	 EXCLUSIVITY
	  	 	6	  
		 	SECTION 2.05	 		 	 SERVICES PROVIDED BY JV
	  	 	6	  
		 	SECTION 2.06	 		 	 TRAINING ADVICE AND ASSISTANCE
	  	 	6	  
		 	SECTION 2.07	 		 	 MEDIFOCUS’S DEVELOPMENT EFFORTS
	  	 	6	  
		 	SECTION 2.08	 		 	 SERVICE CAPABILITY
	  	 	6	  
			
	ARTICLE III	 	TERMS OF SUPPLY	  	 	7	  
					
		 	SECTION 3.01	 		 	 SUPPLY FORECASTS
	  	 	7	  
		 	SECTION 3.02	 		 	 ORDERS
	  	 	7	  
		 	SECTION 3.03	 		 	 PRODUCT SPECIFICATIONS; PACKAGING AND LABELING
	  	 	7	  
		 	SECTION 3.04	 		 	 CHANGES
	  	 	7	  
			
	ARTICLE IV	 	REGULATORY APPROVALS AND COMPLIANCE	  	 	8	  
					
		 	SECTION 4.01	 		 	 GENERAL
	  	 	8	  
		 	SECTION 4.02	 		 	 DATA
	  	 	8	  
		 	SECTION 4.03	 		 	 TRACEABILITY PROGRAM
	  	 	8	  
		 	SECTION 4.04	 		 	 RECALLS
	  	 	9	  
		 	SECTION 4.05	 		 	 NOTICES
	  	 	9	  
		 	SECTION 4.06	 		 	 COMPLIANCE WITH LAWS
	  	 	9	  
		 	SECTION 4.07	 		 	 MANUFACTURING REQUIREMENTS
	  	 	10	  
		 	SECTION 4.08	 		 	 MEDIFOCUS INSPECTION RIGHTS
	  	 	10	  
		 	SECTION 4.09	 		 	 REGULATORY AUDIT
	  	 	11	  
		 	SECTION 4.10	 		 	 CLINICAL TRIALS
	  	 	11	  
		 	SECTION 4.11	 		 	 COMPLAINTS
	  	 	11	  
			
	 ARTICLE V
	 	INTELLECTUAL PROPERTY	  	 	12	  
					
		 	SECTION 5.01	 		 	 LICENSE
	  	 	12	  
			
	SECTION 5.02	 	PROSECUTION OF PATENTS	  	 	12	  
					
		 	SECTION 5.03	 		 	 OBLIGATION TO OBTAIN THIRD PARTY
APPROVALS
	  	 	12	  
		 	SECTION 5.04	 		 	 TRADEMARK LICENSE
	  	 	12	  
			
	SECTION 5.05	 	INFRINGEMENT OF OWNED LICENSED TECHNOLOGY	  	 	13	  
					
		 	SECTION 5.07	 		 	 INFRINGEMENT OF SUBLICENSED PROPRIETARY RIGHTS
	  	 	14	  
		 	SECTION 5.08	 		 	 INTELLECTUAL PROPERTY INFRINGEMENTS
	  	 	14	  
			
	 ARTICLE VI
	 	COMPENSATION	  	 	14	  
					
		 	SECTION 6.01	 		 	 PURCHASE OF CATHETERS AND CONTROL
UNITS
	  	 	14	  
		 	SECTION 6.02	 		 	 SALE ROYALTIES
	  	 	15	  
		 	SECTION 6.03	 		 	 PAYMENT REPORTING
	  	 	15	  

											
		 	SECTION 6.04	 		 	 PAYMENT
	  	 	15	  
		 	SECTION 6.05	 		 	 TAXES
	  	 	15	  
		 	SECTION 6.06	 		 	 BLOCKED CURRENCY
	  	 	15	  
		 	SECTION 6.07	 		 	 FOREIGN EXCHANGE
	  	 	15	  
			
	ARTICLE VII	 	CONFIDENTIALITY	  	 	16	  
					
		 	SECTION 7.01	 		 	 CONFIDENTIALITY
	  	 	16	  
		 	SECTION 7.02	 		 	 RELEASE FROM RESTRICTIONS
	  	 	16	  
		 	SECTION 7.03	 		 	 PUBLIC ANNOUNCEMENTS AND PUBLICATIONS
	  	 	16	  
			
	ARTICLE VIII	 	REPRESENTATIONS AND WARRANTIES	  	 	17	  
					
		 	SECTION 8.01	 		 	 MUTUAL REPRESENTATIONS AND WARRANTIES
	  	 	17	  
		 	SECTION 8.02	 		 	 MEDIFOCUS REPRESENTATIONS AND WARRANTIES
	  	 	18	  
		 	SECTION 8.03	 		 	 DISCLAIMERS; LIMITATIONS ON LIABILITY
	  	 	18	  
		 	SECTION 8.04	 		 	 MEDIFOCUS INDEMNITY
	  	 	19	  
		 	SECTION 8.05	 		 	 JV INDEMNITY
	  	 	19	  
		 	SECTION 8.06	 		 	 SPECIAL DAMAGES
	  	 	19	  
		 	SECTION 8.07	 		 	 INSURANCE
	  	 	19	  
		 	SECTION 8.09	 		 	 THIRD PARTY CLAIMS
	  	 	20	  
			
	ARTICLE IX	 	TERM AND TERMINATION	  	 	20	  
					
		 	SECTION 9.01	 		 	 TERM
	  	 	20	  
		 	SECTION 9.02	 		 	 EXTENSION
	  	 	20	  
		 	SECTION 9.03	 		 	 TERMINATION
	  	 	20	  
		 	SECTION 9.04	 		 	 EFFECT OF TERMINATION
	  	 	21	  
		 	SECTION 9.05	 		 	 FORCE MAJEURE
	  	 	21	  
			
	ARTICLE X	 	MISCELLANEOUS	  	 	22	  
					
		 	SECTION 10.01	 		 	 EXPENSES
	  	 	22	  
		 	SECTION 10.02	 		 	 NOTICES
	  	 	22	  
		 	SECTION 10.03	 		 	 HEADINGS
	  	 	22	  
		 	SECTION 10.04	 		 	 SEVERABILITY
	  	 	22	  
		 	SECTION 10.05	 		 	 ENTIRE AGREEMENT
	  	 	23	  
			
	SECTION 10.06	 	FURTHER ACTION	  	 	23	  
					
		 	SECTION 10.07	 		 	 ASSIGNMENT
	  	 	23	  
		 	SECTION 10.08	 		 	 AMENDMENT
	  	 	23	  
			
	SECTION 10.09	 	GOVERNING LAW AND VENUE	  	 	23	  
					
		 	SECTION 10.10	 		 	 COUNTERPARTS
	  	 	23	  
		 	SECTION 10.11	 		 	 WAIVER
	  	 	24	  
		 	SECTION 10.12	 		 	 NO THIRD PARTY BENEFICIARIES
	  	 	24	  
		 	SECTION 10.13	 		 	 RELATIONSHIP
	  	 	24	  
			
	SECTION 10.14	 	SPECIFIC PERFORMANCE	  	 	24	  
					
		 	SECTION 10.15	 		 	 WAIVER OF JURY TRIAL
	  	 	24	  

  
 -ii- 

 LICENSE AND DISTRIBUTION AGREEMENT 

This LICENSE AND DISTRIBUTION AGREEMENT is effective as of the 8th day of November 2013, by and between MEDIFOCUS INC, an
Ontario, Canada corporation having a principal place of business at 10240 Old Columbia Road Suite G Columbia, Maryland U.S.A. 21046 (“Medifocus”), and Medifocus Holding Limited, a Company incorporated in the British Virgin Islands,
having a registered address at Akara Building, 24 De Castro Street, Wickhams Cay 1, Road Town, Tortola, British Virgin Islands (“JV”). 

WHEREAS, Medifocus has purchased the Prolieve system from Boston Scientific; 

WHEREAS, Ideal Concept Group Limited (“ICG’”) possesses extensive experience and capabilities in the development,
clinical testing, regulatory approval, promotion and marketing of biomedical products in China, Hong Kong and Taiwan; 
 WHEREAS,
Medifocus and ICG have formed JV to develop and commercialize Prolieve in Asia Pacific (Excluding India); and 
 WHEREAS, JV desires
to obtain the exclusive right to perform clinical testing, seek regulatory approval for, and to commercialize Prolieve in Asia Pacific, and Medifocus desires to grant such rights to JV, on the terms and conditions set forth herein. 

NOW, THEREFORE, in consideration of the premises and the mutual representations, agreements and covenants set forth herein, and for
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Medifocus and JV, intending to be legally bound, hereby agree as follows: 

ARTICLE I 
 DEFINITIONS

 SECTION 1.01 Certain Defined Terms. As used in this Agreement, the following terms shall have the following meanings: 

“Affiliate” means, with respect to any specified Person, any other Person that directly, or indirectly through one or more
intermediaries, controls, is controlled by, or is under common control with, such specified Person. For purposes of this definition, “control” (including the terms “controlled by” and “under common control
with”), with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly or as trustee, personal representative or executor, of the power to direct or cause the direction of the affairs or
management of a Person, whether through the ownership of voting securities, as trustee, personal representative or executor, by contract, credit arrangement or otherwise. 

 “Approve or Approval” means the prior written consent of a party. 

“BPH” means benign prostatic hyperplasia. 

“Business Day” means any day that is not a Saturday, a Sunday or other day on which banks are required or authorized by Law
to be closed in the United States. 
 “Catheter Kit” means the single-use
disposable components of the PROLIEVE System. 
 “Change of Control” means that an entity, other than Medifocus, ICG or an
Affiliate of either of them, shall have become the beneficial owner of securities representing 51% or more of the aggregate voting power of the then outstanding securities of JV or any sale by JV of all or substantially all of its assets. 

“CFDA” means China Food and Drug Administration of the People’s Republic of China. 

“Commercially Reasonable Efforts” means with respect to the JV’s obligations under this Agreement to develop or
commercialize the Products, the level of efforts required to carry out such obligations in a sustained manner consistent with the efforts medical device/biopharmaceutical companies devote to a product of similar market potential, profit potential or
strategic value resulting from their own research efforts, based on conditions then prevailing. 
 “Confidential
Information” means all nonpublic proprietary information and materials (whether or not patentable), disclosed by Medifocus or JV (the “Disclosing Party” to the other (the “Receiving Party”) in furtherance
of this Agreement, irrespective of the manner in which the Disclosing Party disclosed such information, including but not limited to, substances, formulations, compositions, procedures, techniques, methodology, processes, protocols, models,
specifications, software, equipment, plans, design, testing and manufacturing data, reports, correspondence, know-how, manufacturing documentation and sources of supply. 

“Control Unit” means the reusable capital equipment component of the PROLIEVE System. 

“Copyrights” means copyrights in works of authorship of any type owned by or licensed to Medifocus as of the date hereof
and/or obtained by Medifocus during the Term of this Agreement, including mask works, computer software, programs and databases, registrations and applications for registrations thereof throughout the world, all rights therein provided by
international treaties and conventions, all moral and common law rights thereto, and all other rights associated therewith. 

  
 -2- 

 “Cost of Goods” means total landed cost of Products, as invoiced by the
manufacturer of the Products, calculated on a quarterly basis, less any volume rebates, manufacturing trade discounts, or other applicable discounts, allowances or similar items. 

“Excluded Markets” means all countries in the world outside the Territory. 

“FDA” means the United States Food and Drug Administration, or any successor entity. 

“Foreign Regulatory Authority” means a Regulatory Authority other than the SFDA. 

“Gross Margin” means Net Sales less the Cost of Goods. 

“Improvements” means any additions, developments, enhancements, updates and other changes in the Products or any components
thereof, including any extensions of the label claims for any Products and any new designs for any Product. 
 “Intellectual
Property” means all intellectual property rights, whether owned or licensed, including (i) United States and non-United States patents and patent applications, divisions, continuations,
continuations-in-part, reissues or extensions thereof, (ii) trademarks, whether registered or unregistered and applications for registration thereof, (iii) copyrights, whether registered or unregistered and applications for registration
thereof, and (iv) trade secrets, know-how, technology, proprietary information and data, including without limitation, substances, formulations, procedures, plans, methods, processes, source codes,
specifications, models, protocols, techniques and experimentation, and design, testing and manufacturing data, and products, compositions and procedures. 

“Launch Date” means the date of the first commercial shipment of a Product to JV’s customer or designated delivery
point, as applicable. 
 “Law” means any United States or non-United States
federal, national, supranational, state, provincial, local or similar statute, law, ordinance, regulation, rule, code, order, requirement or rule of law. 

“Net Sales” means the quarterly gross sales revenues generated from sales of Products in the Territory, less the amount equal
to (1) trade and/or quantity discounts actually allowed, sales value added or other excise taxes and import duties of a similar nature paid and invoiced to the customers, (3)amounts repaid or credited by reason of purchase charge-backs or
rebates and (4) charges for freight, insurance, handling and transportation separately invoiced. 

  
 -3- 

 “Other Medifocus Products” means any products developed by Medifocus from its
Intellectual Property other than the Products, and all Improvements to any of the foregoing. 
 “Patents” means all United
States and non-United States patents and patent applications, divisions, continuations, continuations-in-part, reissues, or extensions thereof owned by or licensed to Medifocus as of the date hereof, as specifically set forth on
[Exhibit ], and/or obtained by Medifocus during the term of this Agreement,. 
 “Person” shall mean an
individual, partnership, joint venture, corporation, limited liability company, trust, unincorporated organization or other entity. 

“Products” mean (i) the PROLIEVE System, any of its component products (including, without limitation, the Control Unit
and the Catheter Kit); (ii) any BPH products developed by Medifocus from its Intellectual Property, and all Improvements to any of the foregoing. 

“Product Approvals” means, for any country or other jurisdiction in the Territory, those approvals, licenses, registrations
or authorizations of any Regulatory Authority required for the importation, exportation, promotion, pricing, manufacture, distribution, marketing, use or sale of a Product in such country or other jurisdiction. 

“Product Specifications” means, for a Product, the specifications and performance requirements established by Medifocus, as
such specifications may be amended or supplemented from time to time in accordance herewith. 
 “Proprietary Rights” means
all proprietary rights and interests of every nature, whether now existing or hereafter arising, including Copyrights, Trademarks, Trade Secrets and Patents, in, to, related to, or covering any Intellectual Property associated with any Products, or
incorporated into any Product, including those relating to their manufacture, sale, use or design. 
 “Regulatory
Authority” means any national, supra-national, regional, state or local regulatory agency, department, bureau, commission, council or other governmental entity. 

“Term” means the period of five (5) years from the date of SFDA Approval. 

“Territory” means all of Asia Pacific except for India. 

“Trademarks” means the trademarks used with respect to any of the Products, as more specifically described on
Exhibit A attached hereto, and any additional trademarks owned or controlled by Medifocus that may be used from time to time with respect to the Products. 

  
 -4- 

 “Trade Secrets” means trade secrets, know-how and other confidential or
proprietary technical, business and other information owned by or licensed to Medifocus as of the date hereof and/or obtained by Medifocus during the Term of this Agreement, including manufacturing and production processes and techniques, research
and development information, technology, drawings, specifications, designs, plans, proposals, scientific, clinical and technical data, financial, marketing and business data, pricing and cost information, business and marketing plans, customer and
supplier lists and information, and all rights in any jurisdiction to limit the use or disclosure thereof. 
 “Year” means
the one-year period beginning on the first day of the Term and ending on the anniversary thereof, and each successive one-year period thereafter during the term of this Agreement. 

ARTICLE II 
 MARKETING
AND DISTRIBUTION 
 SECTION 2.01 Grant of Rights. Subject to the terms and conditions set forth in this Agreement, Medifocus
hereby grants to JV the sole and exclusive right, license and privilege to (i) perform all necessary clinical testing of the Products within the Territory, (ii) seek all Product Approvals of the Products from all Regulatory Authorities
within the Territory, and (iii) to market and distribute the Products within each country or jurisdiction in the Territory during the Term. 

SECTION 2.02 Performance. During the Term, JV shall use Commercially Reasonable Efforts at its sole cost and expense to
(i) perform all necessary clinical testing of the Products within the Territory, (ii) seek all requisite Product Approvals of the Products from all Regulatory Authorities within the Territory, and (iii) market and distribute each
Product, for which all requisite Product Approvals have been obtained, within each country or jurisdiction in the Territory. In the event that Approval of the Product has not been received in at least one country within the Territory within three
years of approval of the Product by the FDA Medifocus will have the right to terminate the JV’s distribution rights to the Product for failure to meet a performance milestone. JV shall consult with Medifocus on a regular basis and receive the
Approval of Medifocus with respect to all significant business decisions concerning the testing, approval and marketing of each of the Products in the Territory, in accordance with the terms and provisions set forth in this Agreement, including the
price, other terms and promotion thereof. No later than two (2) months prior to the anticipated Launch Date of a Product in the Territory, JV shall submit to Medifocus for its Approval a marketing plan and budget detailing JV’s projected
activities to commercialize the Product in the Territory and including performance and sales milestones which shall be mutually agreed to by the parties. Thereafter, on or before each anniversary date of the Launch Date of the Product, JV shall
update and revise the marketing plan and budget and submit it to Medifocus for its Approval. 

  
 -5- 

 SECTION 2.03 Competitive Products. JV agrees that, during the Term, JV shall not test,
seek approval for, market, sell or otherwise distribute in the Territory, any technology, therapy or product that is competitive with any Product. 

SECTION 2.04 Exclusivity. During the Term of this Agreement, Medifocus shall not enter into any joint venture, development,
distribution, license or similar agreement with respect to any Product, or the application of any of the Proprietary Rights in the treatment of Persons, with any Person other than JV, in the Territory. Nothing contained herein shall restrict
Medifocus from entering into such an agreement with respect to any Products or Proprietary Rights in any Excluded Market. 
 SECTION 2.05
Services Provided by JV. JV shall be solely responsible for delivering and installing each Product (as required) at its customers’ sites, and training its customers’ staff to operate, use and service the Products safely and
effectively on an on-going basis. 
 SECTION 2.06 Training Advice and Assistance. Medifocus shall, at JV’s sole cost and expense
provide reasonable technical assistance, materials and training regarding the Products for JV’s representatives in order for JV to provide the services set forth in Section 2.05, and to assist JV in marketing the Products, including such
information as is necessary or appropriate for JV to prepare such other manuals, promotional materials and warning labels deemed necessary or appropriate by JV. 

SECTION 2.07 Medifocus’ Development Efforts. During the term of this Agreement, Medifocus shall continue to use its Commercially
Reasonable Efforts to initiate, pursue, advance and develop (including, without limitation, through continuing research and development) the Products and the Proprietary Rights for commercialization worldwide, including the United States. Medifocus
shall keep JV regularly informed of Medifocus’ development plans and manufacturing activities, and shall consult with JV in good faith regarding such plans and activities. 

SECTION 2.08 Service Capability. Prior to the launch of any Product in the Territory, JV shall establish internally, or enter into an
outsourcing agreement for, a service capability to support any warranty claims with respect to the Products, on terms, conditions and procedures Approved by Medifocus. 

SECTION 2.09 Development and Distribution of Other Medifocus Products. The parties acknowledge and agree that Medifocus is working
towards developing Other Medifocus Products. Medifocus is committed to engaging JV in negotiation for the distribution right of any Other Medifocus Products under the same spirit. Medifocus shall make reasonable effort to provide JV with first right
of refusal when Medifocus seeks out partners within the Territory. 

  
 -6- 

 ARTICLE III 

TERMS OF SUPPLY 
 SECTION
3.01 Supply Forecasts. During the Term, JV shall provide to Medifocus, on a quarterly basis, a six-month forecast of expected orders of each Product beginning with the month following the month in which the forecast is delivered. 

SECTION 3.02 Orders. All orders of Products shall be on JV’s standard form of purchase order used by JV from time to time. 

SECTION 3.03 Product Specifications; Packaging and Labeling. All Products sold by JV hereunder shall be in full compliance with the
Product Specifications established by Medifocus and approved by the Regulatory Authorities in the Territory, and shall be ready for use and operation by the end-user, including all packaging, labeling, instructions-for-use and sterilization as
approved by Medifocus. Subject to all applicable Regulatory Authority requirements, all Products shall be labeled (including bar coding/UPN numbers) in accordance with the procedures specified from time to time by Medifocus, and Medifocus shall have
final approval over all packaging and labeling for Products and all reasonable costs of implementing all requests for changes (regardless of reason) to the packaging and labeling of the Products shall be borne by JV. JV maintains the right to
overlabel Products as it deems necessary but shall not utilize Trademarks except in accordance with Article V, and shall provide Medifocus with copies of any additional labels used by JV. If either party becomes aware of any information about
any Product indicating that it may not conform to the Product Specifications then in effect, or that there are potential adulteration, misbranding and/or other issues regarding safety or effectiveness, it shall promptly notify the other party. The
parties shall discuss in good faith the appropriate course of action, including recall of the Product in accordance with the provisions of Section 4.04, if necessary. 

SECTION 3.04 Changes. JV shall not make any changes to any Product (including its manufacturing process or labeling) or to the Product
Specifications, unless Approved by Medifocus, except to the extent required by Law, provided, that, if Medifocus should agree to redesign any Products, all agreed redesign costs incurred by Medifocus shall be reimbursed by JV. JV shall notify
Medifocus not less than thirty (30) days in advance of any change to the Product Specifications required to be made under applicable Law. Medifocus shall own exclusively all right, title and interest in any modifications or enhancements to the
Products so developed or redesigned, including any new Products and Improvements derived therefrom. 

  
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 ARTICLE IV 

REGULATORY APPROVALS AND COMPLIANCE 

SECTION 4.01 General. JV shall be responsible, at its expense, for obtaining, maintaining and complying with all regulatory
requirements and approvals (including all Product Approvals) that Medifocus and JV mutually agree are necessary or useful to promote and sell the Products in the Territory, and shall pursue all such requirements and approvals necessary and useful to
promote and sell the Products in the Territory, at JV’s sole cost and expense. JV shall promptly notify Medifocus and provide to Medifocus a copy or transcription, if available, of any communication from the CFDA and any Foreign Regulatory
Authority relating to the Products, the marketing thereof or any related matter (including copies of all Product Approvals). JV shall consult with Medifocus regularly in pursuing all regulatory requirements and approvals (including all Product
Approvals), and shall consult with and receive the Approval of Medifocus for all protocols, methodologies and designs of clinical trials, to be utilized by JV in its regulatory and clinical trial plans for the Territory, prior to implementation and
execution thereof, and after completion of any clinical trial, shall provide Medifocus with a written report summarizing the results of such trial and a copy of all documentation related to such trial as requested by Medifocus. All regulatory
approvals (including all Product Approvals) shall be obtained in the name of Medifocus. Medifocus may from time to time provide JV with support in obtaining any regulatory approval (including any Product Approval), provided that JV shall reimburse
Medifocus for all reasonable costs and expenses (including the cost of personnel occupied) incurred by Medifocus in providing such support. Notwithstanding the foregoing, in the event that this licensing and distribution agreement is terminated, the
party that initiated the termination shall bear all cost arise from regulatory applications and requirements plus ten percent (10%) to compensate for the JV’s services. 

SECTION 4.02 Data. JV shall provide to Medifocus copies of its existing scientific, medical, technical and other data related to the
Products to support JV’s marketing activities. JV shall update the data submissions it makes under this Section 4.02 and provide Medifocus with all new data promptly after the same is developed, assembled or comes to the attention of JV.
JV shall also periodically (and in any event, no less frequently than once per calendar quarter) provide Medifocus with a written report summarizing the progress of all clinical trials with respect to any Product. 

SECTION 4.03 Traceability Program. JV shall be responsible for maintaining medical device vigilance systems in the Territory as
required of a distributor of products such as the Products by local regulations, and shall provide Medifocus with reasonable access to such records. Each party shall inform the other promptly if it becomes aware of any medical complaint required to
be reported to any Regulatory Authority in the Territory. 

  
 -8- 

 SECTION 4.04 Recalls. 

(a) Notwithstanding anything in this Agreement to the contrary, JV shall have the right to manage any recall of a Product within the
Territory, provided that JV shall consult with and receive the Approval of Medifocus with respect to the manner, process and timing of the actions to be taken in connection with such recall, and the obligations of the parties in
Sections 4.04(b) and (c) are subject to such right. 
 (b) If, in the judgment of Medifocus or JV, any Product defect or any
government action requires a recall of, or the issuance of an advisory letter regarding, any Product, Medifocus may undertake such recall or issue such advisory letter after consultation with JV and JV may undertake such recall or issue such
advisory letter after consultation with Medifocus and receipt of Medifocus’ Approval with the respect to the manner, process and timing thereof. The parties shall also endeavor to reach an agreement prior to making any recall or issuing any
advisory letter regarding the manner, text and timing of any publicity to be given such matters in time to comply with any applicable legal or regulatory requirements, but such agreement shall not be a precondition to implementing any action
necessary to protect users of the Products or to comply with any applicable governmental orders or mandates. The parties agree to provide reasonable assistance to one another in the event of any recall or issuance of any advisory letter. JV shall be
solely responsible for the costs of effecting such recall or issuing such advisory letter, including costs related to return of recalled Products, provided, that if such recall or advisory letter result from a design defect in the Product, Medifocus
shall be responsible for the costs of effecting such recall or advisory letter. 
 (c) In the event of a recall of any Product, JV shall
correct or cause its manufacturers, as applicable, to correct any deficiency relating to the manufacturing, packaging, testing, labeling, storing or handling of such Product, if applicable, and shall, upon agreement with Medifocus, either, at
JV’s cost (and seek reimbursement from Medifocus if such recall is due to a design defect of the Product), replace each unit of the Product recalled (including units held in inventory by JV or its customers) with a corrected Product within a
reasonable period of time, or refund the purchase price therefor. 
 SECTION 4.05 Notices. Each of Medifocus or JV shall notify the
other immediately if it becomes aware of any issue with a Product, including its testing, manufacture, labeling, packaging or use, occurring within the Territory or outside of the Territory, including any issue relating to regulatory compliance,
unusual or unexpected reactions or events, malfunctions, safety or efficacy of or attributable to any Product. Without limiting the generality of the foregoing, each of Medifocus or JV shall notify the other immediately if it becomes aware of any
death or bodily injury caused by a Product (or suspected to be caused by a Product) or any malfunction of a Product occurring within the Territory or outside of the Territory. 

SECTION 4.06 Compliance with Laws. JV shall comply with all applicable Laws pertaining to the testing, manufacturing, labeling or
packaging of the 

  
 -9- 

 
Products, and in any other manner pertaining to the performance by JV of its obligations under this Agreement, including the import, export, distribution, sales and marketing of the Products,
maintenance of ongoing quality assurance and testing procedures to comply with applicable regulatory requirements. Without limiting the generality of the foregoing, JV shall (i) report to the SFDA and every applicable Foreign Regulatory
Authority within any relevant time periods all events that are required to be reported (including any death or serious bodily injury caused by a Product); and (ii) deliver, within the permitted time periods, all annual or other periodic reports
required to be delivered to the CFDA and every applicable Foreign Regulatory Authority. 
 SECTION 4.07 Manufacturing
Requirements. 
 (a) Unless otherwise approved by Medifocus, JV shall have all Products manufactured by manufacturers who
are currently manufacturing Products for Medifocus on such terms and conditions acceptable to both JV and Medifocus, including that (i) notwithstanding any prior inspection or payments, all Products shall be subject to final inspection and
acceptance at JV’s designated destination point within sixty (60) days after delivery, (ii) without prejudice to any other right or remedy of JV, in case any item is defective in material or workmanship, or otherwise not in conformity
with the Product Specifications, Product Approvals or the requirements of JV’s order, JV shall have the right to reject it, (iii) any item that has been rejected must be replaced by and at the expense of manufacturer promptly after notice,
(iv) JV shall not be required to pay for any rejected item, or its shipping costs or any other costs related thereto, and (v) that JV shall return all rejected Products to manufacturer at manufacturer’s expense. 

(b) JV shall be responsible for ensuring that all manufacturers utilized by JV shall manufacture Products in accordance with (a) the
Product Specifications, (b) applicable regulations relating to Good Manufacturing Practices and similar protocols required by applicable Laws (“GMP”), quality system regulations of the FDA or CFDA (“QSR”), including master
device and lot history records, and ISO 9001 and EN 46001 requirements, (c) other pertinent rules and regulations of the FDA and any Foreign Regulatory Authorities in other applicable jurisdictions and (d) JV’s quality assurance
requirements. Upon the request of Medifocus, JV shall provide Medifocus with written evidence of compliance with the criteria set forth in the preceding sentence. If the manufacturer is someone other than Medifocus’ manufacturer of Products, JV
shall maintain or cause to be maintained registration of each facility in which any Product is manufactured as a certified medical device manufacturing facility and shall maintain such facility registration with all applicable Regulatory Authorities
or cause such facility to be maintained such that the facility would comply with GMP and QSR. 
 SECTION 4.08 Medifocus Inspection
Rights. 
 (a) Medifocus shall have the right to have its representatives present at the plants and production facilities relating to or
used in connection with the manufacture of the Products during normal business hours to conduct an initial inspection and periodic inspections of such plants and facilities and the manufacturing procedures for compliance

  
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with GMP and QSR, the Product Specifications, and JV’s quality assurance requirements, and to inspect JV’s inventory of Products and such other matters as may be pertinent to proper
quality assurance of the Products to be delivered hereunder. Medifocus agrees to give JV a minimum of seven Business Days’ prior notice of any such inspection. JV shall promptly use its best efforts to take such action as is required to correct
(or cause the correction of) any deficiencies identified by Medifocus relating to the production of any Product. 
 (b) JV agrees to assist
Medifocus in arranging visits and inspection of the plants or production facilities at which JV’s vendors manufacture any component, material, sub-assembly or service for any Product. JV may not outsource manufacturing of any Product or any
sub-components of any Product, or change any supplier, including engaging a new supplier or changing an existing supplier, for any component material, sub-assembly or service relating to any Product without the prior written Approval of Medifocus
(which Approval shall be in the sole and absolute discretion of Medifocus). 
 SECTION 4.09 Regulatory Audit. JV shall permit
authorized representatives of any Regulatory Authority to inspect JV’s plant and production facilities relating to or used in connection with the manufacture of the Products and shall promptly notify Medifocus when JV receives notice of any
such inspection. JV shall advise Medifocus of the findings of any regulatory inspection and shall take the steps necessary to correct promptly any compliance deficiencies found by the Regulatory Authority relating to the manufacture of the Products.
JV further agrees to use its best efforts to provide to Medifocus such documentation or conduct such analyses as Medifocus may reasonably request in connection with any regulatory submission or audit. 

SECTION 4.10 Clinical Trials. Prior to conducting any clinical trial programs in the Territory, JV shall review with and receive the
Approval of Medifocus with respect to the selection of clinical sites, protocols, methodologies and designs of clinical trials to be conducted with respect to any of the Products. JV shall, at its own expense, be responsible for conducting and
managing all clinical trial programs in the Territory necessary or desirable in order to fulfill JV’s obligations under this Agreement. 

SECTION 4.11 Complaints. JV shall perform complaint evaluations in order to investigate the cause of any complaints with respect to any
aspect of the Product or its performance, or with respect to any services provided by JV pursuant to Section 2.05, and to determine any required corrective actions. JV shall maintain records of such investigations as required by GMP. JV shall
within seven (7) days from the time it receives a complaint, provide Medifocus with written notification of any such complaint, including information regarding the nature of the complaint and the corrective action to be taken and any other
information requested by Medifocus, perform a complete investigation in response to any complaint including a root cause analysis, and formulate corrective action recommendations to address the issues raised by such complaint. JV shall complete all
corrective actions (including corrective actions requested by the other party), within ninety (90) days of such corrective actions being identified or requested, as the case may be. 

  
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 ARTICLE V 

INTELLECTUAL PROPERTY 

SECTION 5.01 License. Subject to the terms and conditions of this Agreement and subject to limitations contained in the license
agreements pursuant to which Medifocus was granted rights in certain of its Intellectual Property, during the Term of this Agreement, Medifocus hereby grants JV an exclusive license with respect to all of its Proprietary Rights, solely to perform
clinical tests, obtain Product Approvals from all Regulatory Authorities, and to market, distribute, have distributed, import, export, use, sell, and offer to sell the Products, in the Territory. Nothing contained herein shall limit in any way, and
Medifocus shall retain the unconditional, exclusive right to perform clinical tests, obtain approvals from Regulatory Authorities, and to market, distribute, have distributed, import, export, use, sell, and offer to sell the Products, in the
Excluded Markets. JV shall not sub-license the rights or obligations granted pursuant to this Section 5.01 without the Approval of Medifocus or the Approval of any licensor from whom Medifocus licenses certain of its Intellectual Property. 

SECTION 5.02 Prosecution of Patents. Medifocus shall retain all rights, and shall be solely responsible for the filing, prosecution and
maintenance of all Patents relative to its Proprietary Rights and each Product, both within the Territory and with respect to countries in the Excluded Market and in no event shall JV assert any right to file, prosecute or maintain any Patent. JV
agrees to fully cooperate with Medifocus in the completion of all necessary applications and filings for such Patents and agrees to reimburse Medifocus for all costs, fees and expenses incurred by Medifocus in obtaining a Patent, relating to a
Product, in the Territory. JV shall promptly inform Medifocus of any patents, information or proceeding of which JV becomes aware, that relate to Patents or patent applications filed by Medifocus with respect to any Proprietary Rights or Products,
and that may adversely impact the validity, title or enforceability of such Patents or patent applications. 
 SECTION 5.03 Obligation to
Obtain Third Party Approvals. Medifocus shall obtain all necessary consents and approvals to effectuate the licenses granted pursuant to Section 5.01. 

SECTION 5.04 Trademark License. 

(a) Medifocus hereby grants JV a license to use the Trademarks solely in connection with the testing, marketing, distribution, import, export,
use, offer to sell and sale of the Products in the Territory during the Term of this Agreement. Medifocus shall take such actions as are reasonably required to maintain the Trademarks in effect, and shall inform JV of any changes in or additions to
the Trademarks. JV acknowledges that Medifocus is the owner of the Trademarks and agrees that JV shall not at any time 

  
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do, cause to be done, or permit any act or thing inconsistent with, contesting or in any way impairing or tending to impair such ownership. JV agrees that all use of the Trademarks by JV shall
inure to the benefit of and be on behalf of Medifocus and that nothing in this Agreement shall give JV any right, title or interest in the Trademarks other than the right to use the Trademarks in accordance with this Agreement. JV agrees that it
will not challenge the title or ownership of the Trademarks by Medifocus or attack or contest the validity of the Trademarks. 
 (b) JV
shall not be obligated to use the Trademarks in connection with the marketing, distribution, import, export, use, offer to sell and sale of any Product; provided, however, that if JV does not use a Trademark, then Medifocus shall have
the right to Approve the product name and trademarks proposed to be used by JV with respect to the Products, which Approval shall not be unreasonably withheld or delayed. JV shall provide to Medifocus for its Approval copies of its promotional and
marketing materials prior to their public release. If JV requests that Medifocus Approve JV’s use of any of JV’s marks solely and exclusively in connection with the promotion, marketing, sale or distribution of the Products (the
“Product Marks”) in the Territory, and Medifocus Approves the use of any such Product Marks, such Product Marks shall be owned by Medifocus and included in the grant of license under Section 5.04(a) and (b). 

SECTION 5.05 Infringement of Owned Licensed Technology. 

(a) In the event that either party obtains knowledge of any actual or threatened infringement or misappropriation by another Person of any of
Medifocus’ Proprietary Rights, such party shall notify the other party in writing promptly of such actual or threatened infringement or misappropriation and provide the other party with any available evidence of such actual or threatened
infringement or misappropriation. 
 (b) Medifocus, at its expense, shall have the first right to commence, prosecute and settle or
otherwise compromise any dispute, action, suit or proceeding (“Proceeding”) involving or against any other Person believed to have infringed or misappropriated any of Medifocus’ Proprietary Rights. In the event that Medifocus
institutes a Proceeding in the Territory with respect to infringement or misappropriation, JV shall have the right to join, at JV’s sole cost and expense, in such Proceeding. 

(c) In the event Medifocus does not institute a Proceeding to obtain a discontinuance of or remedy for any actual or threatened infringement
or misappropriation of Medifocus’ Proprietary Rights in the Territory within sixty (60) days of the date of receipt by Medifocus of a written demand from JV, then JV, may institute a Proceeding with respect to the actual or threatened
infringement or misappropriation, at JV’s sole cost and expense. If required by Law, Medifocus shall permit any action under this Section 5.05(c) to be brought in its name, including being joined as party-plaintiffs. 

(d) In the event a party brings an infringement action pursuant to this Section 5.05, the other party shall cooperate fully, including,
if required to bring such action, the furnishing of a power of attorney. 
 (e) With respect to any Proceeding instituted by Medifocus under
Section 5.05(b), any recovery shall belong exclusively to Medifocus. With respect to any Proceeding instituted by JV under Section 5.05(c), any recovery shall belong exclusively to JV. 

  
 -13- 

 SECTION 5.06 Infringement of Sublicensed Proprietary Rights. In the event that any party
obtains knowledge of any actual or threatened infringement or misappropriation by another Person of any sublicensed Proprietary Rights, such party shall notify the other party in writing promptly of such actual or threatened infringement or
misappropriation and provide the other party with any available evidence of such actual or threatened infringement or misappropriation. Medifocus shall use its Commercially Reasonable Efforts to obtain a discontinuance of or remedy for any actual or
threatened infringement or misappropriation, including promptly informing the owner of the relevant sublicensed Proprietary Rights and working with such owner to obtain a discontinuance of or remedy for any actual or threatened infringement or
misappropriation. 
 SECTION 5.07 Intellectual Property Infringements. Notwithstanding anything in this Agreement to the contrary, in
the event an Intellectual Property infringement or misappropriation suit is brought against JV where JV’s marketing, use, sale, offer to sell, import, export and/or distribution of Products is alleged to be infringing or misappropriating any
third party’s Intellectual Property, JV shall promptly advise Medifocus of such action and Medifocus shall, at its sole cost and expense defend such action and indemnify JV from and against any and all Losses (as defined herein) arising from
such alleged infringement or misappropriation, provided that Medifocus shall have no obligation to indemnify JV if the alleged infringement or misappropriation arises out of JV’s breach or non-compliance with any of the provisions of this
Agreement. JV shall have the right to participate in any such suit, at its option and expense, but in all events shall be obligated to reasonably cooperate with Medifocus in such suit, including if required, furnishing Medifocus a power of attorney.
If Medifocus is unable to procure a license from a third party owning or controlling rights that would be infringed or misappropriated by JV’s marketing, use, sale, offer to sell, import, export and/or distribution of Products on commercially
reasonable terms, Medifocus shall so notify JV and JV shall discontinue its marketing, use, sale, offer to sell, import, export and/or distribution of Products. 

ARTICLE VI 

COMPENSATION 
 SECTION
6.01 Purchase of Catheters and Control Units. The JV will purchase Catheter Kits and Control Units directly from Medifocus, and will pay Medifocus an amount equal to the actual documented costs of manufacturing and delivering the Catheter
Kits and Control Units to JV’s designated destination plus ten percent (10%). 

  
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 SECTION 6.02 Sale Royalties. 

(a) the Term of this Agreement, JV shall pay Medifocus a royalty equal to five percent (5%) of the first Ten Million Dollar (USD
10,000,000) in Net Sales generated by the Catheter Kits and Control Units. Royalties on Net Sales above Ten Million Dollar (USD 10,000,000) will be charged at a rate equal to 3 percent (3%). 

(b) Unless otherwise agreed by the parties, during the Term of this Agreement, JV shall also pay Medifocus seven and one half percent (7 1⁄2%) of the Net Sales generated by all Other Medifocus Products. 

SECTION 6.03 Payment Reporting. JV will submit a quarterly report, for each quarter ending
March 31, June 30, September 30 and December 31, to Medifocus of all sales of Products within the Territory, no later than thirty (30) days after the last day of each quarter. All amounts payable to Medifocus under
Section 6.02 of this Agreement shall be accompanied by a summary statement showing the calculation of the royalty payments with reasonable supporting detail. Medifocus shall have the right, at its own expense, upon five (5) days prior
written notice to have a certified public accountant examine the books and records of JV to verify the calculation of royalty payments, both at the premises of JV and elsewhere. In addition to the repayment of any discrepancy discovered by
accountant, if the accountant discovers that the royalty payments have been underpaid by 5% or more, the JV shall bear the reasonable cost of the accountant. 

SECTION 6.04 Payment. All payments, including payment for products and royalties due under Section 6.02 above, will be payable in
Dollars (U.S.) either within sixty (60) days after the close of the quarter in which the royalties were generated or within sixty (60) days of receipt of invoice therefor. All such payments will be made by international wire transfer to a
bank designated by Medifocus. 
 SECTION 6.05 Taxes. Medifocus shall be solely responsible for any and all taxes levied on account of
amounts it receives under this Agreement. 
 SECTION 6.06 Blocked Currencies. In any country where conversion of the local currency
is blocked and such currency cannot be removed from the country, JV shall pay Medifocus in local currency by deposit in a local bank designated by Medifocus. 

SECTION 6.07 Foreign Exchange. For the purpose of computing Net Sales for Products sold in a currency other than Dollars (U.S.), such
currency shall be converted into Dollars using the average monthly rate of exchange at the time for such currencies as set forth in the on-line edition of the Wall Street Journal
(http://www.interactive.wsj.com). 

  
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 ARTICLE VII 

CONFIDENTIALITY 
 SECTION
7.01 Confidentiality. During the term of this Agreement and thereafter for so long as such Confidential Information remains proprietary and confidential to the Disclosing Party, the Receiving Party shall maintain Confidential Information in
confidence, and shall not disclose, divulge or otherwise communicate such Confidential Information to others, or use it for any purpose, except pursuant to, and in order to carry out, the terms and objectives of this Agreement. The Receiving Party
hereby shall exercise every reasonable precaution to prevent and restrain the unauthorized disclosure of such Confidential Information by any of its directors, officers, employees, consultants, subcontractors, or agents. Upon termination of this
Agreement, Medifocus and JV hereby shall return to the other, upon demand, all Confidential Information in its possession or, upon demand, to destroy such Confidential Information and provide a certificate to the other of such destruction. 

SECTION 7.02 Release from Restrictions. The provisions of Section 7.01 shall not apply to any Confidential Information disclosed
hereunder that: 
 (a) is lawfully disclosed to the Receiving Party by an independent, unaffiliated Person rightfully in possession of the
Confidential Information and under no confidentiality or fiduciary obligation not to make disclosure; 
 (b) becomes published or generally
known to the public through no fault or omission on the part of the Receiving Party; 
 (c) is developed independently by the Receiving
Party without access to the Confidential Information of the Disclosing Party; 
 (d) is legally required to be disclosed to the CFDA, FDA or
other Regulatory Authority; or 
 (e) a Receiving Party is legally compelled to disclose; provided, however, that the Receiving Party shall
provide prompt written notice of such requirement to the Disclosing Party so that the Disclosing Party may seek a protective order or other remedy or waive compliance with Section 7.01; and provided further that in the event that such
protective order or other remedy is not obtained or the Disclosing Party waives compliance with Section 7.01, the Receiving Party shall be permitted to furnish only that portion of such Confidential Information that is legally required to be
provided and the Receiving Party shall exercise its Commercially Reasonable Efforts to obtain assurances that confidential treatment shall be accorded such information. 

SECTION 7.03 Public Announcements and Publications. Except as required by Law or by the requirements of any securities exchange on
which the securities of Medifocus or JV are listed, neither Medifocus nor JV shall make, or cause to 

  
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be made, any press release or public announcement in respect of this Agreement or the transactions contemplated hereby or otherwise communicate with any news media without the Approval of the
other, and Medifocus and JV shall cooperate as to the timing and contents of any such press release or public announcement. 
 ARTICLE
VIII 
 REPRESENTATIONS AND WARRANTIES 

SECTION 8.01 Mutual Representations and Warranties. Each of Medifocus and JV hereby represents and warrants to the other as of the date
hereof as follows: 
 (a) the execution, delivery and performance of this Agreement by such party have been duly authorized by all necessary
action on the part of such party; 
 (b) this Agreement has been duly executed and delivered by such party and, assuming due authorization,
execution and delivery by the other party, constitutes a legal, valid and binding obligation of such party, enforceable against such party in accordance with its terms, subject to (i) applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, and other laws relating to or affecting the rights of creditors generally (including, without limitation, fraudulent conveyance laws) and (ii) the exercise of judicial discretion in accordance with general
principles of equity, regardless of whether such enforceability is considered in a proceeding at law or in equity, including, without limitation, concepts of materiality, reasonableness, good faith and fair dealing and the possible unavailability of
specific performance, or injunctive relief; 
 (c) such party’s execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated hereby and thereby do not and will not (i) violate, conflict with or result in the breach of any provision of the certificate of incorporation or by-laws of such party, (ii) conflict with or
violate any Law or governmental order applicable to such party or its assets, properties or businesses, or (iii) conflict with, result in any breach of, constitute a default (or event which with the giving of notice or lapse of time, or both,
would become a default) under, require any consent under, or give to others any rights of termination, amendment, acceleration, suspension, revocation or cancellation of, or result in the creation of any encumbrance on any of its outstanding shares
of common stock or preferred stock or any of the assets or properties of such party pursuant to, any note, bond, mortgage or indenture, contract, agreement, lease, sublease, license, permit, franchise or other instrument or arrangement to which it
is a party or by which any of such party’s shares of common stock or preferred stock or any of the party’s assets or properties is bound or affected; 

(d) it is not a party to any litigation relating to, or that could reasonably be expected to affect, its ability to perform its obligations
under this Agreement; 

  
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 (e) the regulatory data it provides to the other party is complete and accurate in all material
respects; and 
 (f) in the course of the development and commercialization of the Products, such party shall not have used during the Term
of this Agreement, any employee or consultant that has been debarred, or to such party’s knowledge is the subject of debarment proceedings, by the FDA, SFDA or any other Regulatory Authority. 

SECTION 8.02 Medifocus Representations and Warranties. Medifocus hereby represents and warrants to JV as of the date hereof as follows:

 (a) to Medifocus’ knowledge, the transactions contemplated hereby do not infringe, misappropriate, dilute or otherwise violate the
Intellectual Property of any Person; 
 (b) to Medifocus’ knowledge, the Proprietary Rights are valid and enforceable and not subject
to any outstanding consent, settlement, decree, order, injunction, judgment or ruling that would impair the validity or enforceability of any such Proprietary Rights; 

(c) Medifocus is the exclusive owner of the entire and unencumbered right, title and interest in and to its owned Proprietary Rights, and is
entitled to use and license the sublicensed Proprietary Rights subject only to the terms of license agreements with respect to such sublicensed Proprietary Rights. 

SECTION 8.03 DISCLAIMERS; LIMITATION ON LIABILITY. 

(a) JV UNDERSTANDS THAT THE PRODUCTS AND PROPRIETARY RIGHTS ARE THE SUBJECT OF ONGOING CLINICAL RESEARCH AND DEVELOPMENT AND THAT MEDIFOCUS
CANNOT ASSURE THE SAFETY OR USEFULNESS OF ANY PRODUCTS. EXCEPT AS EXPRESSLY PROVIDED HEREIN, NEITHER PARTY MAKES ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, ANY WARRANTY OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OR NON-MISAPPROPRIATION OF THIRD PARTY INTELLECTUAL PROPERTY RIGHTS, OR ANY OTHER MATTER WITH RESPECT
TO ANY FINAL PRODUCT, WHETHER USED ALONE OR COMBINED WITH OTHER DEVICES, OR OTHERWISE. 
 (b) NOTHING IN THIS AGREEMENT SHALL BE DEEMED TO
BE A REPRESENTATION OR WARRANTY BY MEDIFOCUS OF THE VALIDITY OF ANY OF THE PATENTS OR THE ACCURACY, SAFETY, EFFICACY, OR USEFULNESS, FOR ANY PURPOSE, OF THE PRODUCTS OR RELATED PATENT RIGHTS. MEDIFOCUS SHALL HAVE NO OBLIGATION, EXPRESS OR IMPLIED,

  
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TO SUPERVISE, MONITOR, REVIEW OR OTHERWISE ASSUME RESPONSIBILITY FOR THE PRODUCTION, MANUFACTURE, TESTING, MARKETING OR SALE OF ANY PRODUCT, AND MEDIFOCUS SHALL HAVE NO LIABILITY WHATSOEVER TO JV
OR ANY THIRD PARTIES FOR OR ON ACCOUNT OF ANY INJURY, LOSS, OR DAMAGE, OF ANY KIND OR NATURE, SUSTAINED BY, OR ANY DAMAGE ASSESSED OR ASSERTED AGAINST, OR ANY OTHER LIABILITY INCURRED BY OR IMPOSED UPON JV OR ANY OTHER PERSON OR ENTITY, ARISING OUT
OF OR IN CONNECTION WITH OR RESULTING FROM: 
  

	 	a.	the production, use, or sale of any Product or related patent rights; or 

  

	 	b.	any advertising or other promotional activities with respect to any of the foregoing. 

 SECTION
8.04 Medifocus Indemnity. Medifocus shall indemnify, defend and hold JV and its Affiliates, officers, directors, employees, agents, successors and assigns (the “JV Indemnified Parties”) harmless from any and all suits,
claims, actions, demands, liabilities, interest, awards, judgments, penalties, expenses, costs, damages or losses (including, without limitation, reasonable attorneys’ fees and expenses) actually suffered or incurred (each, a “Loss”)
by any JV Indemnified Party arising out of or resulting from: 
 (a) the breach of any representation or warranty, covenant or agreement by
Medifocus contained in this Agreement; or 
 (b) any alleged injury, illness and/or death of any Person resulting from any design flaw of
any Product (but not the manufacture of any Product) supplied to JV hereunder (except to the extent resulting from the performance by JV of its obligations under Sections 2.02 and 2.05). 

SECTION 8.05 JV Indemnity. JV shall indemnify, defend and hold Medifocus and its Affiliates, officers, directors, employees, agents,
successors and assigns (the “Medifocus Indemnified Parties”) harmless from any and all Losses by any Medifocus Indemnified Party arising out of or resulting from the breach of any representation or warranty, covenant or agreement by
JV contained in this Agreement or resulting from the performance by JV of its obligations under Sections 2.02 and 2.05. 
 SECTION 8.06
SPECIAL DAMAGES. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR SPECIAL, INCIDENTAL, INDIRECT OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR RELATED TO THIS AGREEMENT. 

SECTION 8.07 Insurance. Each party shall maintain comprehensive general liability insurance, including products liability, with
a minimum liability coverage limit of One Million Dollars per occurrence or such amount as may be mutually agreed between Medifocus and the JV. 

  
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 SECTION 8.08 Third Party Claims. In the event that either party is seeking indemnification
in connection with a third party claim, it shall inform the Indemnifying Party of the claim giving rise to the obligation to indemnify as soon as practicable after receiving notice of the claim. The Indemnifying Party shall have the right to assume
the defense of such third party claim. The Indemnified Party shall cooperate with the Indemnifying Party and shall have the right, at its own expense, to participate in the defense of any claim or suit that has been assumed by the Indemnifying
Party. Neither party shall have the obligation to indemnify the other party in connection with any settlement made without the Indemnifying Party’s written consent. The Indemnifying Party shall not settle any third party claim without the
Approval of the Indemnified Party, which consent shall not be unreasonably withheld, unless such settlement does not subject the Indemnified Party to any monetary liability and includes a complete, unconditional release of the Indemnified Party from
all liabilities with respect to such claim or demand. Nothing contained in the foregoing sentence shall be construed as to release a party from its obligations under Section 8.04 or Section 8.05, as applicable. 

ARTICLE IX 
 TERM AND
TERMINATION 
 SECTION 9.01 Term. This Agreement shall take effect as of the date hereof and shall remain in full force and
effect until the end of the Term, unless sooner terminated in accordance herewith. 
 SECTION 9.02 Extension. The Term shall be
automatically extended for additional successive one-year periods unless notice of non-extension is delivered by either Medifocus or JV to the other no later than one year prior to the expiration of the then-current term. 
 SECTION 9.03 Termination. 

(a) Subject to Section 9.05, this Agreement may be terminated: 

 

	 	(i)	by mutual written consent of Medifocus and JV; 

  

	 	(ii)	 by Medifocus or JV, if the other party (i) files in any court pursuant to any Law in any country a petition in bankruptcy or insolvency or for
reorganization or for an arrangement or for the appointment of a receiver or trustee of the company or of its assets, (ii) proposes a written agreement of composition for extension of its debts, (iii) is served with an involuntary petition
against it, filed in any insolvency 

  
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proceeding, and such petition shall not be dismissed within sixty (60) days after filing thereof, (iv) is party to any dissolution or liquidation, or (v) makes a general assignment
for the benefit of its creditors; 

  

	 	(iii)	by Medifocus or JV upon sixty (60) days written notice to the other party in the event that the other party shall have materially breached any of its obligations, representations or warranties hereunder (including,
without limitation, any failure to satisfy any performance or sales milestone) and shall not have cured such breach to the reasonable satisfaction of the other party prior to the expiration of such 60-day
period. 

 (b) This Agreement shall automatically terminate if the joint venture is dissolved for any reason. 

SECTION 9.04 Effect of Termination. Notwithstanding anything to the contrary contained herein, Medifocus shall continue to comply with
all of its duties and obligations hereunder necessary or appropriate, to permit JV to fulfill its obligations to deliver Products pursuant to customer orders outstanding at the time of such termination or expiration, until such customer orders have
expired and to sell or otherwise distribute all or any portion of JV’s inventory of Products. Termination of this Agreement shall not affect rights and obligations of either party that may have accrued prior to the effective date of termination
or any obligation that by its nature or express terms survives termination. Without limiting the foregoing, the provisions of Article VII, Sections 8.03, 8.04, 8.05, 8.06, 8.07, 10.01, 10.09, 10.14, 10.15 and 10.16 shall survive any
expiration or termination of this Agreement. 
 SECTION 9.05 Force Majeure. Subject to the last sentence of this Section 9.05,
any delay in the performance of any of the duties or obligations of either Medifocus or JV hereunder (except for payment obligations) shall not be considered a breach of this Agreement and the time required for performance shall be extended for a
period equal to the period of such delay, provided that such delay has been caused by or is the result of any of the following acts of God; acts of the public enemy; insurrections; riots; embargoes; labor disputes, such as strikes, lockouts or
boycotts; fires; explosions; floods; earthquakes; and mud slides, provided that any of such events must be (a) beyond the reasonable control of the party declaring a force majeure event and (b) not owing to the negligence or willful
misconduct of the party declaring a force majeure event. The party declaring a force majeure event shall give prompt notice to the other party of such cause, and shall take whatever reasonable steps are necessary to relieve the effect of such cause
as rapidly as possible. If the force majeure event continues for a consecutive ninety (90) day period, the delay in the performance of any of the duties or obligations of the party declaring the force majeure event shall cease to be protected
by this Section 9.05 and the other party may terminate this Agreement immediately upon notice to the party declaring the force majeure event. 

  
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 ARTICLE X 

MISCELLANEOUS 
 SECTION
10.01 Expenses. Except as otherwise specified in this Agreement, all costs and expenses, including, without limitation, fees and disbursements of counsel, financial advisors and accountants, incurred by each party in connection with the
negotiation, execution and performance of this Agreement shall be paid by such party. 
 SECTION 10.02 Notices. All notices,
requests, claims, demands and other communications hereunder shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by an internationally recognized overnight courier
service, by telecopy or registered or certified mail (postage prepaid, return receipt requested) to the respective parties at the following addresses (or at such other address for a party as shall be specified by such party from time to time in a
notice given to the other party in accordance with this Section 9.02): 
  

	 	(a)	if to Medifocus: 

  

	 	  	Medifocus Inc 

	 	  	10240 Old Columbia Road Suite G 

	 	  	Columbia, Maryland 21046 

	 	  	Attention: President and Chief Executive Officer 

	 	  	Facsimile No: (410) 290-7255 

  

	 	  	with a copy to: 

  

	 	  	if to JV: 

  

	 	  	Mr Michael Tse 

  

	 	  	Facsimile No: 0852 2779 3523 

 SECTION 10.03 Headings. The descriptive headings
contained in this Agreement are for convenience of reference only and shall not affect in any way the meaning or interpretation of the Agreement. 

SECTION 10.04 Severability. If any terms or other provision of this Agreement is invalid, illegal or incapable of being enforced by any
Law or public policy, 

  
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all other terms and provisions of this Agreement shall nevertheless remain in full force and effect for so long as the economic or legal substance of the transactions contemplated by this
Agreement is not affected in any manner materially adverse to any party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties shall negotiate in good faith to modify this Agreement
so as to effect the original intent of the parties as closely as possible in an acceptable manner in order that the transactions contemplated by this Agreement are consummated as originally contemplated to the greatest extent possible. 

SECTION 10.05 Entire Agreement. This Agreement constitutes the entire agreement of the parties with respect to the subject matter
hereof and supersedes all prior agreements, understandings and undertakings, among the parties with respect to the subject matter thereof, whether oral or written. 

SECTION 10.06 Further Action. Each of the parties hereto shall use reasonable best efforts to take, or cause to be taken, all
appropriate action, do or cause to be done all things necessary, proper or advisable under applicable Law, and to execute and deliver such documents and other papers, as may be required to carry out the provisions of this Agreement and consummate
and make effective the transactions contemplated by this Agreement. 
 SECTION 10.07 Assignment. This Agreement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Neither party may assign this Agreement without the prior written consent of the other party. No assignment by either party permitted hereunder
shall relieve the applicable party of its obligations under this Agreement. 
 SECTION 10.08 Amendment. This Agreement may not be
amended or modified except by an instrument in writing signed by both parties. 
 SECTION 10.09 Governing Law and Venue. This
Agreement shall be governed by, and construed in accordance with, the laws of the State of Maryland. Subject to Section 10.15 hereof, the parties unconditionally and irrevocably agree and consent to the exclusive jurisdiction of the courts
located in the State of Maryland and waive any objection with respect thereto, for the purpose of any specific performance action or any action, suit or proceeding arising out of or relating to the enforcement of any arbitration award, and further
agree not to commence any such action, suit or proceeding except in any such court. 
 SECTION 10.10 Counterparts. This Agreement may
be executed and delivered (including by facsimile transmission) in one or more counterparts, and by the different parties in separate counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile shall be effective as delivery of a manually executed counterpart of this Agreement. 

  
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 SECTION 10.11 Waiver. Either party to this Agreement may (a) extend the time for the
performance of any of the obligations or other acts of the other party, (b) waive any inaccuracies in the representations and warranties of the other party contained herein or in any document delivered by the other party pursuant hereto or
(c) waive compliance with any of the agreements of the other party or conditions to such party’s obligations contained herein. Any such extension or waiver shall be valid only if set forth in an instrument in writing signed by the party to
be bound thereby. Any waiver of any term or condition shall not be construed as a waiver of any subsequent breach or a subsequent waiver of the same term or condition, or a waiver of any other term or condition of this Agreement. The failure of any
party to assert any of its rights hereunder shall not constitute a waiver of any of such rights. All rights and remedies existing under this Agreement are cumulative to, and not exclusive of, any rights or remedies otherwise available. 

SECTION 10.12 No Third Party Beneficiaries. This Agreement shall be binding upon and inure solely to the benefit of the parties and
their permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other Person any legal or equitable right, benefit or remedy of any nature whatsoever. 

SECTION 10.13 Relationship. Each party shall at all times maintain complete control over its personnel and operations. Neither party
shall have, or shall represent that it has any power, right or authority to bind the other party to any obligation or liability, or to assume or create any obligation or liability on behalf of the other party, as a result of this Agreement. 

SECTION 10.14 Specific Performance. The parties hereto agree that irreparable damage would occur in the event any provision of this
Agreement was not performed in accordance with the terms hereof and that the parties shall be entitled to specific performance and injunctive relief to enforce the terms hereof, in addition to any other remedy at law or equity. 

SECTION 10.15 Arbitration. Except for the right of either party to seek specific performance or injunctive relief pursuant to
Section 10.14 hereof, in the event of a breach by the other party of its obligations hereunder, any dispute, controversy, or claim arising out of or relating to this Agreement shall be settled by arbitration in accordance with the commercial
arbitration rules of the International Chamber of Commerce (“ICC”) (or any similar successor rules thereto) as are in force on the date when a notice of arbitration is received. The appointing authority shall be the ICC. The notice of
arbitration shall specifically describe the claims, disputes or other matters in issue that are being submitted to arbitration. The number of arbitrators shall be one. The language to be used in the proceedings shall be English. The place of
arbitration shall be mutually agreed by the parties. The decision of the arbitrator shall be final and binding upon the parties, and such decision shall be enforceable through any courts having competent jurisdiction. The costs and expenses of
arbitration shall be allocated and paid by the parties as determined by the arbitrator. Both parties agree to use their best efforts to cause a final decision to be rendered with respect to the matter submitted to arbitration within sixty
(60) days after is submission. 

  
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 SECTION 10.16 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY WAIVES TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.
EACH OF THE PARTIES HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THAT FOREGOING WAIVER
AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 10.16. 

  
 -25- 

 IN WITNESS WHEREOF, Medifocus and JV have caused this Agreement to be executed by their
duly authorized representatives as of the date first written above. 
  

							
	WITNESS/ATTEST:	 		 	MEDIFOCUS INC
				
	/S/ Douglas Liu	 		 	By:	 	/S/Augustine Y. Cheung (SEAL)
		 		 	Name:	 	Augustine Y. Cheung
		 		 	Title:	 	Chief Executive Officer
			
		 		 	MEDIFOCUS HOLDING LIMITED
				
	/S/ Douglas Liu	 		 	By:	 	/S/ Michael Tse (SEAL)
		 		 	Name:	 	Michael Tse
		 		 	Title:	 	Director

  
 -26-

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