Document:

Exhibit 10.4

 

EMPLOYMENT AGREEMENT

 

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

 

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

 

1.               EMPLOYMENT
AND DUTIES.

 

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

 

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

 

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

 

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

 

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2.               COMPENSATION.

 

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

 

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

 

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

 

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

 

3.               PROPRIETARY
INFORMATION.

 

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

 

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

 

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

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

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

 

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

 

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

 

4.               COVENANT
NOT TO COMPETE.

 

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

 

B.           Definitions.

 

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

 

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

 

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

 

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

 

5.               NON-SOLICITATION
AND NON-INTERFERENCE COVENANTS.

 

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

 

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

 

6.               ACKNOWLEDGEMENTS.
Employee acknowledges and agrees that:

 

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

 

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

 

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

 

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

 

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

 

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

 

8.               INVENTIONS.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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12.             TERMINATION.

 

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

 

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

 

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

 

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

 

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E.            Definitions.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

13.            GENERAL
PROVISIONS.

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

	Confidential:	Please initial each page: 	 

 

    	Page 10

    	 

    

 

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

 

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

 

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

 

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

 

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

 

[Signature Page Follows]

 

	Confidential:	Please initial each page: 	 

 

    	Page 11

    	 

    

 

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

 

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

 

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

 

	Address:	5101 Garden Spa Ct.	 	Title:	CEO 

 

	Phone:	937-416-9626	 	 	 

 

	Email:	DK@X-Spine.com 	 	 	 

 

[Signature Page to Employment Agreement]

 

	Confidential:	Please initial each page: 	 

 

    	Page 12

    	 

    

 

EXHIBIT A

LIST OF PRIOR INVENTIONS AND ORIGINAL
WORKS OF AUTHORSHIP

 

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

 

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

 

	Confidential:	Please initial each page: 	 

 

    	Page 13

    	 

    

 

EXHIBIT B

 

TERMINATION CERTIFICATE

 

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

 

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

 

		 ̈	Computer/laptop

 

		 ̈	Keys/access cards

 

		 ̈	Company credit card

 

		 ̈	Other equipment (please list)__________________________________________________________________

____________________________________________________________________________________________

 

	Confidential:	Please initial each page: 	 

 

    	Page 14Ex 10.1 Intuitive Surgical, Inc. Form of Indemnity Agreement

Exhibit 10.1

INDEMNITY AGREEMENT
This Indemnity Agreement (“Agreement”) is made as of ________ __, 20__ by and between Intuitive Surgical, Inc., a Delaware corporation (the “Company”), and ______________ (“Indemnitee”).
RECITALS
WHEREAS, highly competent persons have become more reluctant to serve publicly-held corporations as directors or in other capacities unless they are provided with adequate protection through insurance or adequate indemnification against inordinate risks of claims and actions against them arising out of their service to and activities on behalf of the corporation;
WHEREAS, the Board of Directors of the Company (the “Board”) has determined that, in order to attract and retain qualified individuals, the Company will attempt to maintain on an ongoing basis, at its sole expense, liability insurance to protect persons serving the Company and its subsidiaries from certain liabilities.  Although the furnishing of such insurance has been a customary and widespread practice among United States-based corporations and other business enterprises, the Company believes that, given current market conditions and trends, such insurance may be available to it in the future only at higher premiums and with more exclusions.  At the same time, directors, officers, and other persons in service to corporations or business enterprises are being increasingly subjected to expensive and time-consuming litigation relating to, among other things, matters that traditionally would have been brought only against the Company or business enterprise itself.  The Certificate of Incorporation of the Company provides that the Company is authorized to provide indemnification of its agents through bylaw provisions or through agreements with the agents.  The Bylaws of the Company require indemnification of the executive officers and directors of the Company to the fullest extent not prohibited by the General Corporation Law of the State of Delaware (“DGCL”) or any other applicable law and provide that the Company shall have power to indemnify its other officers, employees and other agents as set forth in the DGCL or any other applicable law.  Indemnitee may also be entitled to indemnification pursuant to the DGCL. The Bylaws expressly provide that the Company is specifically authorized to enter into individual contracts with any or all of its directors, officers, employees or agents respecting indemnification and advances, to the fullest extent not prohibited by the DGCL or by any other applicable law, and the DGCL expressly provides that the indemnification provisions set forth therein may be modified and thereby contemplates that contracts may be entered into between the Company and members of the board of directors, officers and other persons with respect to indemnification;
WHEREAS, the uncertainties relating to such insurance and to indemnification have increased the difficulty of attracting and retaining such persons;
WHEREAS, the Board has determined that the increased difficulty in attracting and retaining such persons is detrimental to the best interests of the Company’s stockholders and that the Company should act to assure such persons that there will be increased certainty of such protection in the future;
WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate itself to indemnify, and to advance expenses on behalf of, such persons to the fullest extent permitted by applicable law so that they will serve or continue to serve the Company free from undue concern that they will not be so indemnified; 
WHEREAS, this Agreement is a supplement to and in furtherance of the Bylaws of the Company and any resolutions adopted pursuant thereto, and shall not be deemed a substitute therefor, nor to diminish or abrogate any rights of Indemnitee thereunder; and
WHEREAS, Indemnitee does not regard the protection available under the Company’s Bylaws and insurance as adequate in the present circumstances, and may not be willing to serve or continue to serve as an officer or director without adequate protection, and the Company desires Indemnitee to serve in such capacity.  Indemnitee is willing to serve, continue to serve and to take on additional service for or on behalf of the Company on the condition that he be so indemnified;

NOW, THEREFORE, in consideration of the premises and the covenants contained herein, the Company and Indemnitee do hereby covenant and agree as follows:
Section 1.Services to the Company.   Indemnitee agrees to serve or continue to serve, as applicable, as a [director] [officer] of the Company] [, at the request of the Company, as a [director] [officer] of [another corporation, partnership, joint venture, trust employee benefit plan or other enterprise].  Indemnitee may at any time and for any reason resign from such position (subject to any other contractual obligation or any obligation imposed by operation of law), in which event the Company shall have no obligation under this Agreement to continue Indemnitee in such position.  This Agreement shall not be deemed an employment contract between the Company (or any of its subsidiaries or any Enterprise) and Indemnitee.  Indemnitee specifically acknowledges that Indemnitee’s employment with the Company (or any of its subsidiaries or any Enterprise), if any, is at will, and the Indemnitee may be discharged at any time for any reason, with or without cause, except as may be otherwise provided in any written employment contract between Indemnitee and the Company (or any of its subsidiaries or any Enterprise), other applicable formal severance policies duly adopted by the Board, or, with respect to service as a director or officer of the Company, by the Company’s Certificate of Incorporation, the Company’s Bylaws and the DGCL.  The foregoing notwithstanding, this Agreement shall continue in force after Indemnitee has ceased to serve as an [officer] [director] of the Company.
Section 2.Definitions.    As used in this Agreement:
(a)A “Change in Control” shall be deemed to occur upon the earliest to occur after the date of this Agreement of any of the following events:
(i)Acquisition of Stock by Third Party.  Any Person (as defined below) is or becomes the Beneficial Owner (as defined below), directly or indirectly, of securities of the Company representing fifteen percent (15%) or more of the combined voting power of the Company’s then outstanding securities;
(ii)Change in Board of Directors.  During any period of two (2) consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constitute the Board, and any new director (other than a director designated by a person who has entered into an agreement with the Company to effect a transaction described in Sections 2(a)(i), 2(a)(iii) or 2(a)(iv)) whose election by the Board or nomination for election by the Company’s stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a least a majority of the members of the Board;
(iii)Corporate Transactions.  The effective date of a merger or consolidation of the Company with any other entity, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 51% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a majority of the board of directors or other governing body of such surviving entity;
(iv)Liquidation.  The approval by the stockholders of the Company of a complete liquidation of the Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets; and
(v)Other Events.  There occurs any other event of a nature that would be required to be reported in response to Item 6(e) of Schedule 14A of Regulation 14A (or a response to any similar item on any similar schedule or form) promulgated under the Exchange Act (as defined below), whether or not the Company is then subject to such reporting requirement. For purposes of this Section 2(a), the following terms shall have the following meanings:
(A)“Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.
(B)“Person” shall have the meaning as set forth in Sections 13(d) and 14(d) of the Exchange Act; provided, however, that Person shall exclude (i) the Company, (ii) any trustee or other fiduciary holding securities under an employee benefit plan of the Company, and (iii) any corporation owned, directly or indirectly, by the stockholders of the Company in substantially the same proportions as their ownership of stock of the Company.  
(C)“Beneficial Owner” shall have the meaning given to such term in Rule 13d-3 under the Exchange Act; provided, however, that Beneficial Owner shall exclude any Person otherwise becoming a Beneficial Owner by reason 

of the stockholders of the Company approving a merger of the Company with another entity.
(b)“Corporate Status” describes the status of a person who is or was a director, officer, employee or agent of the Company or of any other corporation, partnership or joint venture, trust, employee benefit plan or other enterprise which such person is or was serving at the request of the Company.
(c)“Disinterested Director” means a director of the Company who is not and was not a party to the Proceeding in respect of which indemnification is sought by Indemnitee.
(d)“Enterprise” shall mean the Company and any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise of which Indemnitee is or was serving at the request of the Company as a director, officer, employee, agent or fiduciary.
(e)“Expenses” shall include all reasonable attorneys’ fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees and all other disbursements or expenses of the types customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a witness in, or otherwise participating in, a Proceeding.  Expenses also shall include Expenses incurred in connection with any appeal resulting from any Proceeding, including without limitation the premium, security for, and other costs relating to any cost bond, supersedes bond, or other appeal bond or its equivalent.  Expenses, however, shall not include amounts paid in settlement by Indemnitee or the amount of judgments or fines against Indemnitee.
(f)“Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporation law and neither presently is, nor in the past five years has been, retained to represent:  (i) the Company or Indemnitee in any matter material to either such party (other than with respect to matters concerning the Indemnitee under this Agreement, or of other indemnitees under similar indemnification agreements), or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder.  Notwithstanding the foregoing, the term “Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.  The Company agrees to pay the reasonable fees and expenses of the Independent Counsel referred to above and to fully indemnify such counsel against any and all Expenses, claims, liabilities and damages arising out of or relating to this Agreement or its engagement pursuant hereto.
(g)The term “Proceeding” shall include any threatened, pending or completed action, suit, arbitration, alternate dispute resolution mechanism, investigation, inquiry, administrative hearing or any other actual, threatened or completed proceeding, whether brought in the right of the Company or otherwise and whether of a civil, criminal, administrative or investigative nature, in which Indemnitee was, is or will be involved as a party or otherwise by reason of the fact that Indemnitee is or was a director or officer of the Company, by reason of any action taken by him or of any action on his part while acting as director or officer of the Company, or by reason of the fact that he is or was serving at the request of the Company as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, in each case whether or not serving in such capacity at the time any liability or expense is incurred for which indemnification, reimbursement or advancement of expenses can be provided under this Agreement; except one initiated by a Indemnitee to enforce his rights under this Agreement.
(h) Reference to “other enterprise” shall include employee benefit plans; references to “fines” shall include any excise tax assessed with respect to any employee benefit plan; references to “serving at the request of the Company” shall include any service as a director, officer, employee or agent of the Company which imposes duties on, or involves services by, such director, officer, employee or agent with respect to an employee benefit plan, its participants or beneficiaries; and a person who acted in good faith and in a manner he reasonably believed to be in the best interests of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in manner “not opposed to the best interests of the Company” as referred to in this Agreement.

Section 3.Indemnity in Third-Party Proceedings.  The Company shall indemnify Indemnitee in accordance with the provisions of this Section 3 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding, other than a Proceeding by or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 3, Indemnitee shall be indemnified against all Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company and, in the case of a criminal proceeding had no reasonable cause to believe that his conduct was unlawful.   
Section 4.Indemnity in Proceedings by or in the Right of the Company.   The Company shall indemnify Indemnitee in accordance with the provisions of this Section 4 if Indemnitee is, or is threatened to be made, a party to or a participant in any Proceeding by or in the right of the Company to procure a judgment in its favor.  Pursuant to this Section 4, Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection with such Proceeding or any claim, issue or matter therein, if Indemnitee acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Company.  No indemnification for Expenses shall be made under this Section 4 in respect of any claim, issue or matter as to which Indemnitee shall have been finally adjudged by a court to be liable to the Company, unless and only to the extent that the Chancery Court of the State of Delaware (the “Delaware Court”) or any court in which the Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnification.
Section 5.Indemnification for Expenses of a Party Who is Wholly or Partly Successful.   Notwithstanding any other provisions of this Agreement, to the extent that Indemnitee is a party to (or a participant in) and is successful, on the merits or otherwise, in any Proceeding or in defense of any claim, issue or matter therein, in whole or in part, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him in connection therewith.  If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf in connection with each successfully resolved claim, issue or matter.  If the Indemnitee is not wholly successful in such Proceeding, the Company also shall indemnify Indemnitee against all Expenses reasonably incurred in connection with a claim, issue or matter related to any claim, issue or matter on which the Indemnitee was successful.  For purposes of this Section and without limitation, the termination of any claim, issue or matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter. 
Section 6.Indemnification for Expenses of a Witness.   Notwithstanding any other provision of this Agreement, to the extent that Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding to which Indemnitee is not a party, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf in connection therewith.
Section 7.Additional Indemnification. 
(a)Notwithstanding any limitation in Sections 3, 4 or 5, the Company shall indemnify Indemnitee to the fullest extent permitted by law if Indemnitee is a party to or threatened to be made a party to any Proceeding (including a Proceeding by or in the right of the Company to procure a judgment in its favor) against all Expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by Indemnitee in connection with the Proceeding. 
(b)For purposes of Section 7(a), the meaning of the phrase “to the fullest extent permitted by law” shall include, but not be limited to:
(i)to the fullest extent permitted by the provision of the DGCL that authorizes or contemplates additional indemnification by agreement, or the corresponding provision of any amendment to or replacement of the DGCL, and
(ii)to the fullest extent authorized or permitted by any amendments to or replacements of the DGCL adopted after the date of this Agreement that increase the extent to which a corporation may indemnify its officers and directors.
Section 8.Exclusions.  Notwithstanding any provision in this Agreement, the Company shall not be obligated under this Agreement to make any indemnity in connection with any claim made against Indemnitee:

(a)for which payment has actually been made to or on behalf of Indemnitee under any insurance policy or other indemnity provision, except with respect to any excess beyond the amount paid under any insurance policy or other indemnity provision; or
(b)for an accounting of profits made from the purchase and sale (or sale and purchase) by Indemnitee of securities of the Company within the meaning of Section 16(b) of the Exchange Act, or similar provisions of state statutory law or common law; or
(c)in connection with any Proceeding (or any part of any Proceeding) initiated by Indemnitee, including any Proceeding (or any part of any Proceeding) initiated by Indemnitee against the Company or its directors, officers, employees or other indemnitees, unless (i) the Board authorized the Proceeding (or any part of any Proceeding) prior to its initiation or (ii) the Company provides the indemnification, in its sole discretion, pursuant to the powers vested in the Company under applicable law.
Section 9.Advances of Expenses.  Notwithstanding any provision of this Agreement to the contrary, the Company shall advance the expenses incurred by Indemnitee in connection with any Proceeding within thirty (30) days after the receipt by the Company of a statement or statements requesting such advances from time to time, whether prior to or after final disposition of any Proceeding.  Advances shall be unsecured and interest free.  Advances shall be made without regard to Indemnitee’s ability to repay the expenses and without regard to Indemnitee’s ultimate entitlement to indemnification under the other provisions of this Agreement.  Advances shall include any and all reasonable Expenses incurred pursuing an action to enforce this right of advancement, including Expenses incurred preparing and forwarding statements to the Company to support the advances claimed.  The Indemnitee shall qualify for advances upon the execution and delivery to the Company of this Agreement which shall constitute an undertaking providing that the Indemnitee undertakes to repay the advance to the extent that it is ultimately determined that Indemnitee is not entitled to be indemnified by the Company.  This Section 9 shall not apply to any claim made by Indemnitee for which indemnity is excluded pursuant to Section 8.
Section 10.Procedure for Notification and Defense of Claim.
(a)To obtain indemnification under this Agreement, Indemnitee shall submit to the Company a written request, including therein or therewith such documentation and information as is reasonably available to Indemnitee and is reasonably necessary to determine whether and to what extent Indemnitee is entitled to indemnification, not later than thirty (30) days after receipt by Indemnitee of notice of the commencement of any Proceeding.  The omission to notify the Company will not relieve the Company from any liability which it may have to Indemnitee otherwise than under this Agreement.  The Secretary of the Company shall, promptly upon receipt of such a request for indemnification, advise the Board in writing that Indemnitee has requested indemnification.
(b)The Company will be entitled to participate in the Proceeding at its own expense.
Section 11.Procedure upon Application for Indemnification.  
(a)Upon written request by Indemnitee for indemnification pursuant to the first sentence of Section 10(a), a determination, if required by applicable law, with respect to Indemnitee’s entitlement thereto shall be made in the specific case:  (i) if a Change in Control shall have occurred, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee; or (ii) if a Change in Control shall not have occurred, (A) by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (B) by a committee of Disinterested Directors designated by a majority vote of the Disinterested Directors, even though less than a quorum of the Board, (C) if there are no such Disinterested Directors or, if such Disinterested Directors so direct, by Independent Counsel in a written opinion to the Board, a copy of which shall be delivered to Indemnitee or (D) if so directed by the Board, by the stockholders of the Company; and, if it is so determined that Indemnitee is entitled to indemnification, payment to Indemnitee shall be made within ten (10) days after such determination.  Indemnitee shall cooperate with the person, persons or entity making such determination with respect to Indemnitee’s entitlement to indemnification, including providing to such person, persons or entity upon reasonable advance request any documentation or information which is not privileged or otherwise protected from disclosure and which is reasonably available to Indemnitee and reasonably necessary to such determination.  Any costs or expenses (including attorneys’ fees and disbursements) incurred by Indemnitee in so cooperating with the person, persons or entity making such determination shall be borne by the Company (irrespective of the determination as to Indemnitee’s entitlement to indemnification) and the Company hereby indemnifies and agrees to hold Indemnitee harmless therefrom.
(b)In the event the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 11(a) hereof, the Independent Counsel shall be selected as provided in this Section 11(b).  If a 

Change in Control shall not have occurred, the Independent Counsel shall be selected by the Board, and the Company shall give written notice to Indemnitee advising him of the identity of the Independent Counsel so selected.  If a Change in Control shall have occurred, the Independent Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be made by the Board, in which event the preceding sentence shall apply), and Indemnitee shall give written notice to the Company advising it of the identity of the Independent Counsel so selected.  In either event, Indemnitee or the Company, as the case may be, may, within ten (10) days after such written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the case may be, a written objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 2 of this Agreement, and the objection shall set forth with particularity the factual basis of such assertion.  Absent a proper and timely objection, the person so selected shall act as Independent Counsel.  If such written objection is so made and substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court has determined that such objection is without merit.  If, within twenty (20) days after submission by Indemnitee of a written request for indemnification pursuant to Section 10(a) hereof, no Independent Counsel shall have been selected and not objected to, either the Company or Indemnitee may petition a court of competent jurisdiction for resolution of any objection which shall have been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent Counsel of a person selected by the Court or by such other person as the Court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 11(a) hereof.  Upon the due commencement of any judicial proceeding or arbitration pursuant to Section 13(a) of this Agreement, Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of professional conduct then prevailing).
Section 12.Presumptions and Effect of Certain Proceedings.
(a)In making a determination with respect to entitlement to indemnification hereunder, the person or persons or entity making such determination shall presume that Indemnitee is entitled to indemnification under this Agreement if Indemnitee has submitted a request for indemnification in accordance with Section 10(a) of this Agreement, and the Company shall have the burden of proof to overcome that presumption in connection with the making by any person, persons or entity of any determination contrary to that presumption.  Neither the failure of the Company (including by its directors or independent legal counsel) to have made a determination prior to the commencement of any action pursuant to this Agreement that indemnification is proper in the circumstances because Indemnitee has met the applicable standard of conduct, nor an actual determination by the Company (including by its directors or independent legal counsel) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct.
(b)If the person, persons or entity empowered or selected under Section 11 of this Agreement to determine whether Indemnitee is entitled to indemnification shall not have made a determination within sixty (60) days after receipt by the Company of the request therefor, the requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law; provided, however, that such sixty (60)-day period may be extended for a reasonable time, not to exceed an additional thirty (30) days, if the person, persons or entity making the determination with respect to entitlement to indemnification in good faith  requires such additional time for the obtaining or evaluating of documentation and/or information relating thereto; and provided, further, that the foregoing provisions of this Section 12(b) shall not apply (i) if the determination of entitlement to indemnification is to be made by the stockholders pursuant to Section 11(a) of this Agreement and if (A) within fifteen (15) days after receipt by the Company of the request for such determination the Board has resolved to submit such determination to the stockholders for their consideration at an annual meeting thereof to be held within seventy-five (75) days after such receipt and such determination is made thereat, or (B) a special meeting of stockholders is called within fifteen (15) days after such receipt for the purpose of making such determination, such meeting is held for such purpose within sixty (60) days after having been so called and such determination is made thereat, or (ii) if the determination of entitlement to indemnification is to be made by Independent Counsel pursuant to Section 11(a) of this Agreement.
(c)The termination of any Proceeding or of any claim, issue or matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not (except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption 

that Indemnitee did not act in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the Company or, with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was unlawful.
(d)Reliance as Safe Harbor.  For purposes of any determination of good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based on the records or books of account of the Enterprise, including financial statements, or on information supplied to Indemnitee by the officers of the Enterprise in the course of their duties, or on the advice of legal counsel for the Enterprise or on information or records given or reports made to the Enterprise by an independent certified public accountant or by an appraiser or other expert selected with the reasonable care by  the Enterprise.  The provisions of this Section 12(d) shall not be deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may be deemed to have met the applicable standard of conduct set forth in this Agreement.
(e)Actions of Others.  The knowledge and/or actions, or failure to act, of any director, officer, agent or employee of the Enterprise shall not be imputed to Indemnitee for purposes of determining the right to indemnification under this Agreement.
Section 13.Remedies of Indemnitee.  
(a)In the event that (i) a determination is made pursuant to Section 11 of this Agreement that Indemnitee is not entitled to indemnification under this Agreement, (ii) advancement of Expenses is not timely made pursuant to Section 9 of this Agreement, (iii) no determination of entitlement to indemnification shall have been made pursuant to Section 11(a) of this Agreement within forty-five (45) days after receipt by the Company of the request for indemnification, (iv) payment of indemnification is not made pursuant to Section 5 or 6 or the last sentence of Section 11(a) of this Agreement within ten (10) days after receipt by the Company of a written request therefor, or (v) payment of indemnification pursuant to Section 3, 4 or 7 of this Agreement is not made within ten (10) days after a determination has been made that Indemnitee is entitled to indemnification, Indemnitee shall be entitled to an adjudication by a court of his entitlement to such indemnification or advancement of Expenses.  Alternatively, Indemnitee, at his option, may seek an award in arbitration to be conducted by a single arbitrator pursuant to the Commercial Arbitration Rules of the American Arbitration Association.  Indemnitee shall commence such proceeding seeking an adjudication or an award in arbitration within one hundred and eighty (180) days following the date on which Indemnitee first has the right to commence such proceeding pursuant to this Section 13(a); provided, however, that the foregoing clause shall not apply in respect of a proceeding brought by Indemnitee to enforce his rights under Section 5 of this Agreement.  The Company shall not oppose Indemnitee’s right to seek any such adjudication or award in arbitration.
(b)In the event that a determination shall have been made pursuant to Section 11(a) of this Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding or arbitration commenced pursuant to this Section 13 shall be conducted in all respects as a de novo trial, or arbitration, on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination.  In any judicial proceeding or arbitration commenced pursuant to this Section 13 the Company shall have the burden of proving Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be.
(c)If a determination shall have been made pursuant to Section 11(a) of this Agreement that Indemnitee is entitled to indemnification, the Company shall be bound by such determination in any judicial proceeding or arbitration commenced pursuant to this Section 13, absent (i) a misstatement by Indemnitee of a material fact, or an omission of a material fact necessary to make Indemnitee’s statement not materially misleading, in connection with the request for indemnification, or (ii) a prohibition of such indemnification under applicable law.
(d)The Company shall be precluded from asserting in any judicial proceeding or arbitration commenced pursuant to this Section 13 that the procedures and presumptions of this Agreement are not valid, binding and enforceable and shall stipulate in any such court or before any such arbitrator that the Company is bound by all the provisions of this Agreement.  The Company shall indemnify Indemnitee against any and all Expenses and, if requested by Indemnitee, shall (within ten (10) days after receipt by the Company of a written request therefore) advance such expenses to Indemnitee, which are incurred by Indemnitee in connection with any action brought by Indemnitee for indemnification or advance of Expenses from the Company under this Agreement or under any directors’ and officers’ liability insurance policies maintained by the Company, regardless of whether Indemnitee ultimately is determined to be entitled to such indemnification, advancement of Expenses or insurance recovery, as the case may be.
Section 14.Non-exclusivity; Survival of Rights; Insurance; Subrogation.  
(a)The rights of indemnification and to receive advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which Indemnitee may at any time be entitled under applicable 

law, the Company’s Certificate of Incorporation, the Company’s Bylaws, any agreement, a vote of stockholders or a resolution of directors or otherwise.  No amendment, alteration or repeal of this Agreement or of any provision hereof shall limit or restrict any right of Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his Corporate Status prior to such amendment, alteration or repeal.  To the extent that a change in Delaware law, whether by statute or judicial decision, permits greater indemnification or advancement of Expenses than would be afforded currently under the Company’s Bylaws and this Agreement, it is the intent of the parties hereto that Indemnitee shall enjoy by this Agreement the greater benefits so afforded by such change.  No right or remedy herein conferred is intended to be exclusive of any other right or remedy, and every other right and remedy shall be cumulative and in addition to every other right and remedy given hereunder or now or hereafter existing at law or in equity or otherwise.  The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other right or remedy.
(b)To the extent that the Company maintains an insurance policy or policies providing liability insurance for directors, officers, employees, or agents of the Company or of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise which such person serves at the request of the Company, Indemnitee shall be covered by such policy or policies in accordance with its or their terms to the maximum extent of the coverage available for any such director, officer, employee or agent under such policy or policies.  If, at the time of the receipt of a notice of a claim pursuant to the terms hereof, the Company has director and officer liability insurance in effect, the Company shall give prompt notice of the commencement of such proceeding to the insurers in accordance with the procedures set forth in the respective policies.  The Company shall thereafter take all necessary or desirable action to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such proceeding in accordance with the terms of such policies.
(c)In the event of any payment under this Agreement, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and take all action necessary to secure such rights, including execution of such documents as are necessary to enable the Company to bring suit to enforce such rights.
(d)The Company shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable (or for which advancement is provided hereunder) hereunder if and to the extent that Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise.
(e)The Company’s obligation to indemnify or advance Expenses hereunder to Indemnitee who is or was serving at the request of the Company as a director, officer, employee or agent of any other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise shall be reduced by any amount Indemnitee has actually received as indemnification or advancement of expenses from such other corporation, partnership, joint venture, trust, employee benefit plan or other enterprise.
Section 15.Duration of Agreement.   This Agreement shall continue until and terminate upon the later of: (a) ten (10) years after the date that Indemnitee shall have ceased to serve [as a [director] [officer] of the Company] [,at the request of the Company, as a [director] [officer] of [another corporation, partnership, joint venture, trust employee benefit plan or other enterprise] or (b) one (1) year after the final termination of any Proceeding then pending in respect of which Indemnitee is granted rights of indemnification or advancement of Expenses hereunder and of any proceeding commenced by Indemnitee pursuant to Section 13 of this Agreement relating thereto.  This Agreement shall be binding upon the Company and its successors and assigns and shall inure to the benefit of Indemnitee and his heirs, executors and administrators.
Section 16.Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and enforceability of the remaining provisions of this Agreement (including without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be affected or impaired thereby and shall remain enforceable to the fullest extent permitted by law; (b) such provision or provisions shall be deemed reformed to the extent necessary to conform to applicable law and to give the maximum effect to the intent of the parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement (including, without limitation, each portion of any Section of this Agreement containing any such provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or unenforceable) shall be construed so as to give effect to the intent manifested thereby.

Section 17.Enforcement.
(a)The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby in order to induce Indemnitee to serve or continue to serve, as applicable, as a director or officer of the Company, and the Company acknowledges that Indemnitee is relying upon this Agreement in serving as a director or officer of the Company.
(b)This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral, written and implied, between the parties hereto with respect to the subject matter hereof.
Section 18.Modification and Waiver.    No supplement, modification or amendment of this Agreement shall be binding unless executed in writing by the parties thereto.  No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions of this Agreement nor shall any waiver constitute a continuing waiver.
Section 19.Notice by Indemnitee.   Indemnitee agrees promptly to notify the Company in writing upon being served with any summons, citation, subpoena, complaint, indictment, information or other document relating to any Proceeding or matter which may be subject to indemnification or advancement of Expenses covered hereunder.  The failure of Indemnitee to so notify the Company shall not relieve the Company of any obligation which it may have to the Indemnitee under this Agreement or otherwise. 
Section 20.Notices.   All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have been duly given (a) if delivered by hand and receipted for by the party to whom said notice or other communication shall have been directed, or (b) mailed by certified or registered mail with postage prepaid, on the third business day after the date on which it is so mailed:
(i)If to Indemnitee, at the address indicated on the signature page of this Agreement, or such other address as Indemnitee shall provide to the Company.
(ii)If to the Company to:
Intuitive Surgical, Inc. 
1020 Kifer Road 
Sunnyvale, California 94086
or to any other address as may have been furnished to Indemnitee by the Company.
Section 21.Contribution.     To the fullest extent permissible under applicable law, if the indemnification provided for in this Agreement is unavailable to Indemnitee for any reason whatsoever, the Company, in lieu of indemnifying Indemnitee, shall contribute to the amount incurred by Indemnitee, whether for judgments, fines, penalties, excise taxes, amounts paid or to be paid in settlement and/or for Expenses, in connection with any claim relating to an indemnifiable event under this Agreement, in such proportion as is deemed fair and reasonable in light of all of the circumstances of such Proceeding in order to reflect (a) the relative benefits received by the Company and Indemnitee as a result of the event(s) and/or transaction(s) giving cause to such Proceeding; and/or (b) the relative fault of the Company (and its directors, officers, employees and agents) and Indemnitee in connection with such event(s) and/or transaction(s).
Section 22.Applicable Law and Consent to Jurisdiction.   This Agreement and the legal relations among the parties shall be governed by, and construed and enforced in accordance with, the laws of the State of Delaware, without regard to its conflict of laws rules.  Except with respect to any arbitration commenced by Indemnitee pursuant to Section 10(a) of this Agreement, the Company and Indemnitee hereby irrevocably and unconditionally (a) agree that any action or proceeding arising out of or in connection with this Agreement shall be brought only in the Delaware Court, and not in any other state or federal court in the United States of America or any court in any other country, (b) consent to submit to the exclusive jurisdiction of the Delaware Court for purposes of any action or proceeding arising out of or in connection with this Agreement, (c) appoint, to the extent such party is not otherwise subject to service of process in the State of Delaware, irrevocably RL&F Service Corp., One Rodney Square, 10th Floor, 10th and King Streets, Wilmington, Delaware 19801 as its agent in the State of Delaware as such party’s agent for acceptance of legal process in connection with any such action or proceeding against such party with the same legal force and validity as if served upon such party personally within the State of Delaware, (d) waive any objection to the laying of venue of any such action or proceeding in the Delaware Court, and (e) waive, and agree not to plead or to make, any claim that any such action or proceeding brought in the Delaware Court has been brought in an improper or inconvenient forum.

Section 23.Identical Counterparts.  This Agreement may be executed in one or more counterparts, each of which shall for all purposes be deemed to be an original but all of which together shall constitute one and the same Agreement.  Only one such counterpart signed by the party against whom enforceability is sought needs to be produced to evidence the existence of this Agreement.
Section 24.Miscellaneous.  Use of the masculine pronoun shall be deemed to include usage of the feminine pronoun where appropriate.  The headings of the paragraphs of this Agreement are inserted for convenience only and shall not be deemed to constitute part of this Agreement or to affect the construction thereof.
 
 IN WITNESS WHEREOF, the parties have caused this Agreement to be signed as of the day and year first above written.

	
			
	INTUITIVE SURGICAL, INC.
	 
	INDEMNITEE

	 
	 
	 

	 
	 
	 

	By:_________________________________
	 
	By:_________________________________

	Name:
	 
	Name:

	Officer:
	 
	Officer:

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