Document:

Exhibit 10.2

       

      SUBORDINATION AGREEMENT

       

      This SUBORDINATION AGREEMENT,
          dated as of August 5, 2022, is between NH EXPANSION CREDIT FUND HOLDINGS LP (“North Haven Expansion”), as agent for the Holders (as hereafter defined; in such capacity, together with its successors or permitted assigns, “Agent”), and the creditors set forth on the signature pages hereto (“Creditors”).

       

      R E C I T A L S

       

      A.          SANUWAVE HEALTH, INC., a Nevada corporation (“Issuer”), has
            requested and/or obtained certain credit accommodations from the Holders under, and as defined in, that certain Note and Warrant Purchase and Security Agreement dated as of August 6, 2020 (as amended, restated, supplemented or otherwise
            modified from time to time) by and among Agent, Issuer and the Holders from time to time signatory thereto (the “NH Agreement”), including
            North Haven Expansion in its capacity as a Holder (each, a “Holder” and collectively, the “Holders”), which credit accommodations are or may be from time to time secured by assets and property of Issuer.

       

      B.          Creditors
            are the holders of Future Advance Convertible Promissory Notes dated August 5, 2022 in the aggregate original principal amount of $[●] (the “Convertible
              Notes”).

       

      C.          In order
            to induce each Holder to extend credit to Issuer and, at any time or from time to time, at each Holder’s option, to make such further loans, extensions of credit, or other accommodations to or for the account of Issuer, or to extend credit upon
            any instrument or writing in respect of which Issuer may be liable in any capacity, or to grant such renewals or extension of any such loan, extension of credit, or other accommodation as any Holder may deem advisable, Creditors are willing to
            subordinate: (i) all of Issuer’s indebtedness and obligations to Creditors pursuant to the Convertible Notes, whether presently existing or arising in the future (the “Subordinated Debt”) to all of Issuer’s indebtedness and obligations to Agent, for the ratable benefit of each Holder; and (ii) all of Creditors’ security interests, if any, to all of Agent’s (for the ratable
            benefit of each Holder’s) security interests in the property of Issuer.  Notwithstanding the foregoing, Subordinated Debt shall not include any equity interests of the Issuer into which the Subordinated Debt may be converted.

       

      NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:

       

      1.          Creditors acknowledge and
            agree that the Subordinated Debt is unsecured and that Creditors do not now have, and shall not assert at any time in the future, any lien, security interest or other encumbrance with respect to any assets of Issuer. Notwithstanding the
            foregoing, Creditors subordinate to Agent, for the ratable benefit of each Holder, any security interest or lien that Creditors may have in any property of Issuer. Notwithstanding the respective dates of attachment or perfection of the security
            interest of Creditors and the security interest of Agent, the security interest of Agent in the accounts, including health care receivables, chattel paper, general intangibles, inventory, equipment, instruments, including promissory notes,
            deposit accounts, investment property, documents, letter of credit rights, any commercial tort claim of Issuer which is now or hereafter identified by Issuer or Agent (or any Holder), and all other property of the Issuer (collectively, the “Collateral”) shall at all times be prior to the security interest of Creditors.

       

      2.          All Subordinated Debt is
            subordinated in right of payment to all obligations of Issuer to Agent and each Holder now existing or hereafter arising, together with all costs of collecting such obligations (including attorneys’ fees), including, without limitation, all
            interest accruing after the commencement by or against Issuer of any bankruptcy, reorganization or similar proceeding (the “Senior Debt”).

       

      3.

       

      
        

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      (a)          Creditors
            will not demand or receive from Issuer (and Issuer will not pay to Creditors) all or any part of the Subordinated Debt, by way of payment, prepayment, setoff, lawsuit or otherwise, nor will Creditors exercise any remedy with respect to the
            Collateral or any other collateral securing the Subordinated Debt, nor will Creditors accelerate the Subordinated Debt, or commence, or cause to commence, prosecute or participate in any administrative, legal or equitable action against Issuer,
            until such time as all the Senior Debt is fully paid in cash, and all of Agent’s and each Holder’s obligations owing to Issuer have been terminated. The foregoing notwithstanding, Creditors shall be entitled to receive payment of all amounts
            that constitute Subordinated Debt, in whole but not in part, solely from the proceeds of a substantially contemporaneous equity financing by Issuer, provided that
            a Potential Default or an Event of Default (each as defined in the NH Agreement) under the Senior Debt has not occurred and is not continuing and would not exist immediately after such payment. Nothing in the foregoing paragraph shall prohibit
            any Creditor from enforcing it rights in respect of the conversion all or any part of the Subordinated Debt into equity securities of Issuer in accordance with the terms of any related note or note purchase agreement.

       

      (b)          Notwithstanding
            anything to the contrary contained in Section 3(a) or elsewhere in this Agreement, if Agent delivers to Creditors written notice (a “Blockage Notice”)
            which states that there has been a default under the documents evidencing the Senior Debt (the “Senior Debt Documents”) that has not been
            cured then, during any Blockage Period (as defined below), Creditors shall not accept or receive any payment of any kind of or on account of the Subordinated Debt, or take any action to enforce its rights or remedies with respect to the
            Subordinated Debt (other than conversion of the Subordinated Debt to equity securities of the Issuer in accordance with the terms of any related note or note purchase agreement; which is expressly permitted hereunder) unless and until the
            earlier of (A) the time Agent notifies Creditors in writing that the default by the Issuer has been cured by the Issuer or waived by Agent, or (B) the expiration of the Blockage Period for such Blockage Notice.

       

      As used herein, “Blockage Period” means a
        period of time beginning on the date a Blockage Notice is delivered to Creditors and terminating on the earlier to occur of:

       

      (1)          120 calendar days following
            such date; provided that if prior to the expiration of such 120-calendar-day period, Agent has commenced and is diligently pursuing a judicial proceeding or non-judicial actions to collect or enforce the Senior Debt or foreclose on any
            collateral for the Senior Debt, or a case or proceeding by or against Issuer is commenced under the United States Bankruptcy Code or any other insolvency law, then such period shall be extended during the continuation of such proceedings and
            actions until the payment in cash in full of the Senior Debt; or

       

      (2)          the written consent of
            Agent to such termination.

       

      provided that, in no event shall any payment in cash be made to or received by any Creditor before 91 calendar days after the Maturity Date under (and as defined in)
        the Senior Debt Documents.

       

      4.          Each Creditor shall promptly
            deliver to Agent in the form received (except for endorsement or assignment by a Creditor where required by Agent) for application to the Senior Debt any payment, distribution, security or proceeds received by such Creditor with respect to the
            Subordinated Debt other than in accordance with this Agreement.

       

      5.          In the event of Issuer’s
            insolvency, reorganization or any case or proceeding under any bankruptcy or insolvency law or laws relating to the relief of debtors, these provisions shall remain in full force and effect, and Agent’s and each Holder’s claims against Issuer
            and the estate of Issuer shall be paid in full before any payment is made to Creditors. For the avoidance of any doubt, Senior Debt includes, without limitation, Agent’s and each Holder’s claims against Issuer and the estate of Issuer arising
            from the granting of credit under Section 364 or the use of cash collateral under Section 363 of the United States Bankruptcy Code, and Creditors agree that they will raise no objection thereto.

       

      
        

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      6.          Until the Senior Debt is
            fully paid in cash, and all of Agent’s and each Holder’s obligations owing to Issuer have been terminated, Creditors agree that they will not object to or oppose (i) the sale of the Issuer, or (ii) the sale or other disposition of any property
            of the Issuer or the estate of Issuer, if Agent has consented to such sale of the Issuer or sale or disposition of any property of the Issuer or the estate of Issuer. If requested by Agent, Creditors shall affirmatively consent to such sale or
            disposition and shall take all necessary actions and execute such documents and instruments as Agent may reasonably request in connection with and to facilitate such sale or disposition.

       

      7.          Until the Senior Debt is
            fully paid in cash, and all of each Holder’s obligations owing to Issuer have been terminated, Creditors irrevocably appoint Agent as Creditors’ attorney-in-fact, and grant to Agent a power of attorney with full power of substitution, in the
            name of each Creditor or in the name of Agent or any Holder, for the use and benefit of Agent and each Holder, without notice to Creditors, to perform at Agent’s or such Holder’s option the following acts in any bankruptcy, insolvency or
            similar proceeding involving Issuer: (i) to file the appropriate claim or claims in respect of the Subordinated Debt on behalf of Creditors if Creditors do not do so prior to 30 calendar days before the expiration of the time to file claims in
            such proceeding and if Agent elects, in its sole discretion, to file such claim or claims; and (ii) to accept or reject any plan of reorganization or arrangement on behalf of Creditors and to otherwise vote Creditors’ claims in respect of any
            Subordinated Debt in any manner that Agent deems appropriate for the enforcement of its rights hereunder.

       

      8.          Creditors shall immediately
            affix a legend to the instruments evidencing the Subordinated Debt stating that the instruments are subject to the terms of this Agreement. No amendment of the documents evidencing or relating to the Subordinated Debt shall directly or
            indirectly modify the provisions of this Agreement in any manner which might terminate or impair the subordination of the Subordinated Debt or the subordination of the security interest or lien that Creditors may have in any property of Issuer.
            By way of example, such instruments shall not be amended to (i) increase the rate of interest with respect to the Subordinated Debt, or (ii) accelerate the payment of the principal or interest or any other portion of the Subordinated Debt.

       

      9.          This Agreement shall remain
            effective for so long as Issuer owes any amounts to Agent or any Holder. If, at any time after payment in full of the Senior Debt, any payments of the Senior Debt must be disgorged by Agent or any Holder for any reason (including, without
            limitation, the bankruptcy of Issuer), this Agreement and the relative rights and priorities set forth herein shall be reinstated as to all such disgorged payments as though such payments had not been made and each Creditor shall immediately
            pay over to Agent, for itself and for the benefit of each Holder, all payments received with respect to the Subordinated Debt to the extent that such payments would have been prohibited hereunder. At any time and from time to time, without
            notice to Creditors, Agent and each Holder may take such actions with respect to the Senior Debt and the Collateral as Agent and/or such Holder, in its sole discretion, may deem appropriate, including, without limitation, terminating advances
            to Issuer, increasing the principal amount, extending the time of payment, increasing applicable interest rates, renewing, compromising or otherwise amending the terms of any documents affecting the Senior Debt and any Collateral, judicial
            foreclosure, nonjudicial foreclosure, exercise of a power of sale, taking a deed, assignment or transfer in lieu of foreclosure as to any of the Collateral, and enforcing or failing to enforce any rights against Issuer or any other person. No
            such action or inaction shall impair or otherwise affect Agent’s or any Holder’s rights hereunder.  Creditors agree not to assert against Agent or any Holder (a) any rights which a guarantor or surety could exercise; but nothing in this
            Agreement shall constitute any Creditor a guarantor or surety; (b) the right, if any, to require Agent or any Holder to marshal or otherwise require Agent or any Holder to proceed to dispose of or foreclose upon any of the Collateral in any
            manner or order; and (c) any right of subrogation, contribution, reimbursement, or indemnity which it may have against Issuer arising directly or indirectly out of this Agreement.

       

      
        

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      10.          This Agreement shall bind
            any successors or assignees of each Creditor and shall benefit any successors or assigns of Agent and each Holder. This Agreement is solely for the benefit of Creditors, Agent and each Holder and not for the benefit of Issuer or any other
            party. Creditors further agree that if Issuer is in the process of refinancing a portion of the Senior Debt with a new lender, and if Agent or any Holder makes a request of Creditors, Creditors shall agree to enter into a new subordination
            agreement with the new lender on substantially the terms and conditions of this Agreement.

       

      11.          This Agreement may be
            executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

       

      12.          CHOICE OF LAW AND VENUE;
            JURY TRIAL WAIVER

       

      New York law governs this Agreement without regard to principles of conflicts of law.  Creditors, Agent and each Holder each submit to the exclusive jurisdiction of
        the State and Federal courts in New York County, City of New York, New York; provided, however, that nothing in this Agreement shall be deemed to operate to preclude Agent or any Holder from bringing suit or taking other legal action in any other
        jurisdiction to realize on the Collateral or any other security for the Obligations (as defined in the NH Agreement), or to enforce a judgment or other court order in favor of Agent and/or any Holder.  Issuer and each Creditor each expressly
        submits and consents in advance to such jurisdiction in any action or suit commenced in any such court, and Issuer and each Creditor each hereby waives any objection that it may have based upon lack of personal jurisdiction, improper venue, or
        forum non conveniens and hereby consents to the granting of such legal or equitable relief as is deemed appropriate by such court.

       

      TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH CREDITOR, ISSUER, AGENT AND EACH HOLDER EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM
        OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS.  THIS WAIVER IS A MATERIAL INDUCEMENT FOR THE PARTIES TO ENTER INTO THIS AGREEMENT. 
        NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS AGREEMENT OR ANYWHERE ELSE, EACH CREDITOR AND ISSUER EACH AGREES THAT IT SHALL NOT SEEK FROM AGENT OR ANY HOLDER UNDER ANY THEORY OF LIABILITY (INCLUDING ANY THEORY IN TORTS), ANY SPECIAL,
        INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES.  EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

       

      13.          This Agreement represents
            the entire agreement with respect to the subject matter hereof, and supersedes all prior negotiations, agreements and commitments. Creditors are not relying on any representations by Agent or any Holder or Issuer in entering into this
            Agreement, and Creditors have kept and will continue to keep themselves fully apprised of the financial and other condition of Issuer. This Agreement may be amended only by written instrument signed by each Creditor and Agent.

       

      14.          In the event of any legal
            action to enforce the rights of a party under this Agreement, the party prevailing in such action shall be entitled, in addition to such other relief as may be granted, all reasonable costs and expenses, including reasonable attorneys’ fees,
            incurred in such action.

       

      [Balance of Page Intentionally Left Blank]

       

      
        

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      IN WITNESS WHEREOF, the
          undersigned have executed this Agreement as of the date first above written.

       

      	
              CREDITOR:

            	

            
	

            	

            
	
              [●]

            	

            
	 	 

      	
              By:

            	

            	

            

      	
              Name:

            	

            	

            

      	
              Title:

            	

            	

            

      

      

      	
              Address for Notices:

            	

            
	

            	

            
	

            	

            
	
              Attn:

            	

            	

            

      

      

      [Signature Page to Subordination Agreement]

      

      

      
        

        
          

        

      

      IN WITNESS WHEREOF, the
          undersigned have executed this Agreement as of the date first above written.

       

      	
              AGENT:

            	

            
	

            	

            
	
              NH EXPANSION CREDIT FUND HOLDINGS LP

            	

            
	

            	

            

      	
              By:

            	
              MS Expansion Credit GP, L.P.

            	

            

      	
              Its: General Partner

            	

            
	

            	
              

              

            	

            

      	
              By:

            	
              MS Expansion Credit GP Inc.

            	

            

      	
              Its: General Partner

            	

            
	

            	

            	

            

      	
              By: 

            	

            	

            

      	
              Name:

            	
              William Reiland

            	

            
	
              Title:

            	
              Managing Director

            	

            

      

      

      
        Address for Notice:

        1585 Broadway, 39th Floor

        New York, NY 10036

        Attn: Debra Abramovitz

        Expansion_credit_reporting@morganstanley.com

        

        

        with a copy to:

        

        

        1585 Broadway, 37th Floor

        New York, NY 10036

        Attn: William Reiland

        

        

        and

        

        

        555 California Street, 14th Floor

        San Francisco, CA  94104

        Attn: Melissa Daniels

        

        

        with a copy, not constituting notice, to:

        

        

        Barnes & Thornburg LLP

        655 W. Broadway, Suite 1300

        San Diego, CA 92101

        Attn: Troy Zander

        

        

      

      
        [Signature Page to Subordination Agreement]

         

          

      

      
        

        
          

        

      

      IN WITNESS WHEREOF, the
          undersigned approves of the terms of this Agreement.

       

      	
              ISSUER:

            	

            
	

            	

            
	
              SANUWAVE HEALTH, INC.

            	

            
	 	 

      	
              By:

            	

            	

            

      	

            	

            	

            
	
              Name:

            	
              Kevin A. Richardson II

            	

            
	
              Title:

            	
              Chief Executive Officer

            	

            

      

      

      Address for Notices:

       

      SANUWAVE HEALTH, INC.

      11495 Valley View Road

      Eden Prairie, MN 55344

      Attn: Kevin A. Richardson, Chief Executive Officer

      Email: kevin.richardson@sanuwave.com

      

      

      with a copy, not constituting notice, to:

      

      

      Morrison & Foerster LLP

      425 Market Street

      San Francisco, CA 94105

      Attention: Murray Indick

      Email: MIndick@mofo.com

       

      
        [Signature Page to Subordination Agreement]Exhibit 10.3

      

      

       SECURITY AGREEMENT

      

      

      THIS SECURITY AGREEMENT dated as of August 5, 2022 (this “Agreement”), is made by SANUWAVE Health, Inc., a
        corporation organized under the laws of Nevada (the “Borrower”), having an address of 11495 Valley View Road, Eden Prairie, MN 55344, in favor of the lenders set forth on the signature pages hereto (together
        with their successors and permitted assigns, the “Lenders”).

      

      

      WITNESSETH:

      

      

      WHEREAS, the Borrower is indebted to Lenders pursuant to Future Advance Convertible Promissory Notes, dated as of August 5, 2022, in the aggregate principal amount of $[●] (together with any and all extensions, renewals, or modifications thereof, the “Notes”), executed by the Borrower in favor of the Lenders;

      

      

      WHEREAS, the Notes evidence a loan (the “Loan”) being made by the Lenders to the Borrower pursuant to a securities purchase agreement (together with any and
        all amendments or modifications thereof, the “Purchase Agreement”) between the Borrower and the Lenders dated as of August 5, 2022; and

      

      

      WHEREAS, the Borrower desires to secure its obligations under the Notes by granting the Lenders a security interest pursuant to this Agreement.

      

      

      NOW, THEREFORE, in consideration of the promises contained in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
        to this Agreement agree as follows:

      

      

      1.          Definitions.  In addition to the terms defined elsewhere in this Agreement, capitalized terms that are not otherwise defined herein have the meanings given to such terms in the
        Notes.

       

      2.          Grant of Security Interest.  As security for the full and punctual payment of the Principal amount (including amounts representing accrued Interest on the Notes) when due and
        payable (whether upon stated maturity or otherwise), the Borrower does hereby pledge, assign, transfer and deliver to the Lenders a continuing and unconditional security interest in and to any and all property of the Borrower, of any kind or
        description, tangible or intangible, wheresoever located and whether now existing or hereafter arising or acquired, including but not limited to, all of the following (all of which property, along with the products and proceeds therefrom, are
        individually and collectively referred to as the “Collateral”):

      

      

      (a)          All goods (and embedded computer programs and supporting information included within the definition of “goods” under the Uniform
        Commercial Code as adopted and in effect in the State of New York, as amended from time to time (the “Code”)) and equipment now owned or hereafter acquired, including, without limitation, all laboratory
        equipment, computer equipment, office equipment, machinery, fixtures, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing, and all attachments, accessories, accessions, replacements, substitutions, additions,
        and improvements to any of the foregoing, wherever located;

       

      (b)          All inventory now owned or hereafter acquired, including, without limitation, all
          merchandise, raw materials, parts, supplies, packing and shipping materials, work in process and finished products including such inventory as is temporarily out of the Borrower’s custody or possession or in transit and including any returns upon
          any accounts or other proceeds, including insurance proceeds, resulting from the sale or disposition of any of the foregoing and any documents of title representing any of the above, and the Borrower’s books relating to any of the foregoing;

       

        

      
        
          

      

      
      (c)          All contract rights and general intangibles, including intellectual property, now owned or
          hereafter acquired, including, without limitation, goodwill, license agreements, franchise agreements, blueprints, drawings, purchase orders, customer lists, route lists, infringements, claims, software, computer programs, computer disks,
          computer tapes, literature, reports, catalogs, design rights, income tax refunds, payment intangibles, commercial tort claims, payments of insurance and rights to payment of any kind;

      

      

      (d)          All now existing and hereafter arising accounts, contract rights, royalties, license rights,
          license fees and all other forms of obligations owing to the Borrower arising out of the sale or lease of goods, the licensing of technology or the rendering of services by the Borrower (subject, in each case, to the contractual rights of third
          parties to require funds received by the Borrower to be expended in a particular manner), whether or not earned by performance, and any and all credit insurance, guaranties, and other security therefor, as well as all merchandise returned to or
          reclaimed by the Borrower and the Borrower’s books relating to any of the foregoing;

      

      

      (e)          All documents, cash, deposit accounts, letters of credit (whether or not the letter of credit is evidenced by a writing),
          certificates of deposit, instruments, promissory notes, chattel paper (whether tangible or electronic) and investment property, including, without limitation, all securities, whether certificated or uncertificated, security entitlements,
          securities accounts, commodity contracts and commodity accounts, and all financial assets held in any securities account or otherwise, wherever located, now owned or hereafter acquired and the Borrower’s books relating to the foregoing; and

      

      

      (f)          Any and all claims, rights and interests in any of the above and all substitutions for, additions and accessions to and proceeds
          thereof, including, without limitation, insurance, condemnation, requisition or similar payments and proceeds of the sale or licensing of intellectual property;

       

      provided, that notwithstanding anything herein to the contrary, the Collateral shall not include (i) any title to or interest in that certain Master Equipment Lease (as amended, restated, amended and restated,
        supplemented or otherwise modified from time to time, the “Master Lease”), or any equipment lease schedule executed by the Borrower from time to time pursuant to the Master Lease (each, a “Schedule”), and the personal property described in each Schedule, together with all replacements, parts, repairs, additions, attachments and accessories incorporated therein, and (ii) now existing and hereafter
        arising accounts owing to the Borrower.

      

      

      3.          Indebtedness Secured.  This Agreement and the security interests granted herein secure the following obligations (collectively, the “Obligations”):

        (a) the obligations of the Borrower to the Lenders under the Notes; (b) the obligations of the Borrower to the Lenders under the Purchase Agreement; (c) any and all advances or expenditures made by the Lenders pursuant to the terms of this
        Agreement; (d) attorneys’ fees, court costs, and other amounts which may be due under the Notes, Purchase Agreement or this Agreement; and (e) any and all other indebtedness of the Borrower to the Lenders, now existing or hereafter arising, of
        whatever class or nature, individually or collectively, whether direct or indirect, joint or several, absolute or contingent, due or to become due, and whether or not now contemplated by the parties, including future advances; and any and all
        extensions, renewals, and modifications of any of the foregoing.

       

      
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      4.          Authorization To File Financing Statements.  The Borrower hereby irrevocably authorizes the Lenders at any time and from time to time to file in any filing office in any Uniform
        Commercial Code jurisdiction any initial financing statements and amendments to this Agreement that: (a) indicate the Collateral, and (b) provide any other information required by part 5 of Article 9 of the Code or the Uniform Commercial Code of
        such other jurisdiction for the sufficiency or filing office acceptance of any financing statement or amendment, including whether the Borrower is an organization, the type of organization and any organizational identification number issued to the
        Borrower.

       

      5.          Relation to Other Security Documents.  The provisions of this Agreement supplement and are cumulative with, and not in lieu of, the provisions of any and all other security
        agreements, mortgages, assignments, and other security documents executed by the Borrower or any third party in favor of the Lenders as security for the Obligations; provided that the Borrower will (i) provide a list of all other secured lenders (“Other Lenders”) and (ii) obtain an intercreditor agreement from each Other Lender (with the exception of (x) NH Expansion Credit Fund Holdings LP and (y) with respect to assets owned by NFS Leasing, Inc., a
        Massachusetts corporation, and leased to the Borrower) that the Lenders’ security interest is pari passu to their security interest with respect to seniority. For the avoidance of doubt, the Borrower and
        the Lenders acknowledge that the rights and obligations of the parties hereto are subject to the Subordination Agreement, dated as of August 5, 2022, between the Lenders and NH Expansion Credit Fund Holdings LP.

       

      6.          Representations and Warranties Concerning Borrower’s Legal Status.  The Borrower hereby represents and warrants to the Lenders as follows: (a) the Borrower’s exact legal name is
        that indicated in this Agreement and on the signature page hereof, (b) the Borrower is an organization of the type, and is organized in the jurisdiction, set forth above in this Agreement, and (c) the Borrower’s place of business and mailing
        address is the address set forth above.

       

      7.          Covenants Concerning Borrower’s Legal Status.  The Borrower covenants with the Lenders as follows: (a) without providing written notice within ten (10) calendar days thereof to
        the Lenders, the Borrower will not change its name, its place of business or, if more than one, chief executive office, or its mailing address or organizational identification number if it has one, (b) if the Borrower does not have an
        organizational identification number and later obtains one, the Borrower will forthwith notify the Lenders of such organizational identification number, and (c) the Borrower will not change its type of organization, jurisdiction of organization, or
        other legal structure.

       

      8.          Covenants Concerning Collateral, etc.  The Borrower further covenants with the Lenders as follows: (a) [reserved], (b) except for Permitted Liens, the Borrower shall be the owner
        of the Collateral free from any right or claim of any other person or any lien, security interest or other encumbrance, and the Borrower shall defend the same against all claims and demands of all persons at any time claiming the same or any
        interests in this Agreement adverse to the Lenders, (c) the Borrower shall not pledge, mortgage or create, or suffer to exist any right of any person in or claim by any person to the Collateral, or any security interest, lien or other encumbrance
        in the Collateral in favor of any person, other than the Lenders, (d) the Borrower will permit the Lenders, or their designee, to inspect the Collateral at any reasonable time, (e) the Borrower will pay promptly or cause to be paid when due all
        taxes, assessments, governmental charges and levies upon the Collateral or incurred in connection with the use or operation of such Collateral or incurred in connection with this Agreement (not including those taxes, assessments, charges or levies
        which are being diligently contested in good faith and by appropriate proceedings, and such contest operates to suspend collection of such contested taxes, assessments, charges and levies) and (f) no transfer or license to any intellectual property
        will be made without the Lenders’ prior written consent.

       

      9.          Insurance.  The Borrower will maintain or cause to be maintained insurance with respect to the Collateral pursuant to the terms of the Notes.

       

      
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      10.          Collateral Protection Expenses; Preservation of Collateral.

       

      (a)          Expenses Incurred by a Lender.  In any Lender’s discretion, if the Borrower fails to do so, a Lender may discharge taxes and other encumbrances at any time
        levied or placed on any of the Collateral, make repairs under this Agreement and pay any necessary filing fees or insurance premiums. The Borrower agrees to reimburse such Lender on demand for all expenditures so made. No Lender shall have any
        obligation to the Borrower to make any such expenditures, nor shall the making of such expenditures be construed as a waiver or cure any Event of Default.

       

      (b)          Lenders’ Obligations and Duties.  Anything in this Agreement to the contrary notwithstanding, the Borrower shall remain obligated and liable under each
        contract or agreement comprised in the Collateral to be observed or performed by the Borrower thereunder. The Lenders shall not have any obligation or liability under any such contract or agreement by reason of or arising out of this Agreement or
        the receipt by a Lender of any payment relating to any of the Collateral, nor shall the Lenders be obligated in any manner to perform any of the obligations of the Borrower under any such contract or agreement, to make inquiry as to the nature or
        sufficiency of any payment received by a Lender in respect of the Collateral or as to the sufficiency of any performance by any party under any such contract or agreement, to present or file any claim, to take any action to enforce any performance
        or to collect the payment of any amounts which may have been assigned to a Lender or to which a Lender may be entitled at any time or times.

       

      11.          Rights and Remedies.  If an Event of Default shall have occurred and be continuing, the Lenders, without any other notice to or demand upon the Borrower, shall have in any
        jurisdiction in which enforcement hereof is sought, in addition to all other rights and remedies, the rights and remedies of a secured party under the Code and any additional rights and remedies as may be provided to a secured party in any
        jurisdiction in which Collateral is located, including, without limitation, the right to take possession of the Collateral, and for that purpose the Lenders may, so far as the Borrower can give authority therefor, enter upon any premises on which
        the Collateral may be situated and remove the same therefrom. The Lenders may in their discretion require the Borrower to assemble all or any part of the Collateral at such location or locations within the jurisdiction(s) of the Borrower’s
        principal office(s) or at such other locations as the Lenders may reasonably designate. Unless the Collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, the Lenders shall give to
        the Borrower at least five (5) Business Days’ (as defined in the Purchase Agreement) prior written notice of the time and place of any public sale of Collateral or of the time after which any private sale or any other intended disposition is to be
        made. The Borrower hereby acknowledges that five (5) Business Days’ prior written notice of such sale or sales shall be reasonable notice. In addition, the Borrower waives any and all rights that it may have to a judicial hearing in advance of the
        enforcement of any of the Lenders’ rights and remedies hereunder, including, without limitation, its right following an Event of Default to take immediate possession of the Collateral and to exercise its rights and remedies with respect to this
        Agreement.

       

      12.          Standards for Exercising Rights and Remedies.  To the extent that applicable law imposes duties on the Lenders to exercise remedies in a commercially reasonable manner, the
        Borrower acknowledges and agrees that it is not commercially unreasonable for the Lenders: (a) to fail to incur expenses reasonably deemed significant by the Lenders to prepare Collateral for disposition or otherwise to fail to complete raw
        material or work in process into finished goods or other finished products for disposition, (b) to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain
        governmental or third party consents for the collection or disposition of Collateral to be collected or disposed of, (c) to advertise dispositions of Collateral through publications or media of general circulation, whether or not the Collateral is
        of a specialized nature, (d) to contact other persons, whether or not in the same business as the Borrower, for expressions of interest in acquiring all or any portion of the Collateral, (e) to hire one or more professional auctioneers to assist in
        the disposition of Collateral, whether or not the Collateral is of a specialized nature, (f) to dispose of Collateral by using Internet sites that provide for the auction of assets of the types included in the Collateral or that have the reasonable
        capability of doing so, or that match buyers and sellers of assets, (g) to dispose of assets in wholesale rather than retail markets, (h) to disclaim disposition warranties, or (i) to the extent deemed appropriate by the Lenders, to obtain the
        services of brokers, consultants, and other professionals to assist the Lenders in the collection or disposition of any of the Collateral. The Borrower acknowledges that the purpose of this Section is to provide non-exhaustive indications of what
        actions or omissions by the Lenders would fulfill the Lenders’ duties under the Code or the Uniform Commercial Code of any other relevant jurisdiction in the Lenders’ exercise of remedies against the Collateral and that other actions or omissions
        by the Lenders shall not be deemed to fail to fulfill such duties solely on account of not being indicated in this Section. Without limitation upon the foregoing, nothing contained in this Section shall be construed to grant any rights to the
        Borrower or to impose any duties on the Lenders that would not have been granted or imposed by this Agreement or by applicable law in the absence of this Section.

       

      
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      13.          No Waiver by Lenders, etc.  The Lenders shall not be deemed to have waived any of their rights and remedies in respect of the Obligations or the Collateral unless such waiver
        shall be in writing and signed by each Lender. No delay or omission on the part of the Lenders in exercising any right or remedy shall operate as a waiver of such right or remedy or any other right or remedy. A waiver on any one occasion shall not
        be construed as a bar to or waiver of any right or remedy on any future occasion. All rights and remedies of the Lenders with respect to the Obligations or the Collateral, whether evidenced hereby or by any other instrument or papers, shall be
        cumulative and may be exercised singularly, alternatively, successively or concurrently at such time or at such times as the Lenders deems expedient.

       

      14.          Suretyship Waivers by Borrower.  The Borrower waives demand, notice, protest, notice of acceptance of this Agreement, notice of loans made, credit extended, Collateral received
        or delivered or other action taken in reliance hereon and all other demands and notices of any description. With respect to both the Obligations and the Collateral, the Borrower assents to any extension or postponement of the time of payment or any
        other indulgence, to any substitution, exchange or release of or failure to perfect any security interest in any Collateral, to the addition or release of any party or person primarily or secondarily liable, to the acceptance of partial payment
        thereon and the settlement, compromising or adjusting of any thereof, all in such manner and at such time or times as the Lenders may deem advisable. The Lenders shall have no duty for the collection or protection of the Collateral or any income
        from the Collateral, the preservation of rights against prior parties, or the preservation of any rights pertaining to this Agreement. The Borrower further waives any and all other suretyship defenses.

       

      15.          Marshalling.  The Lenders shall not be required to marshal any present or future collateral security (including but not limited to the Collateral) for, or other assurances of
        payment of, the Obligations or any of them or to resort to such collateral security or other assurances of payment in any particular order, and all of their rights and remedies hereunder and in respect of such collateral security and other
        assurances of payment shall be cumulative and in addition to all other rights and remedies, however existing or arising. To the extent that it lawfully may, the Borrower hereby agrees that it will not invoke any law relating to the marshalling of
        collateral which might cause delay in or impede the enforcement of the Lenders’ rights and remedies under this Agreement or under any other instrument creating or evidencing any of the Obligations or under which any of the Obligations is
        outstanding or by which any of the Obligations is secured or payment thereof is otherwise assured, and, to the extent that it lawfully may, the Borrower hereby irrevocably waives the benefits of all such laws.

       

      16.          Proceeds of Dispositions; Expenses.  The Borrower shall pay to any Lender on demand any and all expenses, including reasonable attorneys’ fees and disbursements, incurred or
        paid by such Lender in protecting, preserving, or enforcing the Lenders’ rights and remedies under or in respect of any of the Obligations or any of the Collateral. After deducting all of said expenses, the residue of any proceeds of collection or
        sale or other disposition of Collateral shall, to the extent actually received in cash, be applied to the payment of the Obligations in such order or preference as the Lenders may determine, proper allowance and provision being made for any
        Obligations not then due. In the absence of final payment and satisfaction in full of all of the Obligations, the Borrower shall remain liable for any deficiency.

       

      
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      17.          Overdue Amounts.  Until paid, all amounts due and payable by the Borrower hereunder shall be a debt secured by the Collateral and shall bear, whether before or after judgment,
        interest at the Default Interest Rate.

       

      18.          Governing Law; Consent to Jurisdiction.  THIS AGREEMENT IS INTENDED TO TAKE EFFECT AS A SEALED INSTRUMENT AND SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
        THE STATE OF NEW YORK. The Borrower agrees that any action or claim arising out of any dispute in connection with this Agreement, any rights or obligations hereunder or the performance or enforcement of such rights or obligations may be brought in
        the courts of the State of New York or any Federal court sitting in the State of New York and consents to the non-exclusive jurisdiction of such court and to service of process in any such suit being made upon the Borrower by mail at the address
        set forth above. The Borrower hereby waives any objection that it may now or hereafter have to the venue of any such suit or any such court or that such suit is brought in an inconvenient court.

       

      19.          Waiver of Jury Trial.  THE BORROWER WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS
        OR OBLIGATIONS HEREUNDER OR THE PERFORMANCE OR ENFORCEMENT OF ANY SUCH RIGHTS OR OBLIGATIONS. Except as prohibited by law, the Borrower waives any right which it may have to claim or recover in any litigation referred to in the preceding sentence
        any special, exemplary, punitive or consequential damages or any damages other than, or in addition to, actual damages. The Borrower (i) certifies that no Lender nor any representative, agent or attorney of any Lender has represented, expressly or
        otherwise, that no Lender would, in the event of litigation, seek to enforce the foregoing waivers or other waivers contained in this Agreement and (ii) acknowledges that, in making the Loan evidenced by the Notes, the Lenders are relying upon,
        among other things, the waivers and certifications contained in this Section.

       

      20.          Miscellaneous.  The headings of each section of this Agreement are for convenience only and shall not define or limit the provisions thereof. This Agreement and all rights and
        obligations hereunder shall be binding upon the Borrower and its successors and permitted assigns, and shall inure to the benefit of the Lender and its successors and permitted assigns. If any term of this Agreement shall be held to be invalid,
        illegal or unenforceable, the validity of all other terms hereof shall in no way be affected thereby, and this Agreement shall be construed and be enforceable as if such invalid, illegal or unenforceable term had not been included in this
        Agreement. The Borrower acknowledges receipt of a copy of this Agreement.

       

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      IN WITNESS WHEREOF, intending to be legally bound, the Borrower has caused this Agreement to be duly executed as of the date first above written.

      

      

      	 	
              BORROWER:

            
	 	 
	 	
              SANUWAVE HEALTH, INC.

            
	 	 

      	 	
              By:

            	 	 

      	 	
              Name:

            	 
	 	
              Title:

            	 

      
        

        

        
          [Signature Page to Security Agreement]

           

            

        

      

      
        
          

      

      IN WITNESS WHEREOF, intending to be legally bound, each Lender has caused this Agreement to be duly executed as of the date first above written.

      

      

      	 	
              LENDER:

            
	 	 
	 	
              [●]

            
	 	 
	 	
              By:

            	 
	 	
              Name:

            	 
	 	
              Title:

            	 

      

      

      
        [Signature Page to Security Agreement]

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