Document:

Exhibit 10.5

 

PAYMENT OF THE INDEBTEDNESS EVIDENCED
BY THIS INSTRUMENT OR DOCUMENT AND THE RIGHTS OF THE HOLDER HEREOF ARE SUBORDINATED AND SUBJECT TO THE RIGHTS OF THE SENIOR HOLDER
AS DEFINED IN AND ACCORDING TO THE TERMS OF A SUBORDINATION AGREEMENT, DATED FEBRUARY 2, 2018, AMONG BIOHITECH GLOBAL, INC. AND
ITS SUBSIDIARIES, THE HOLDER AND MICHAELSON CAPITAL SPECIAL FINANCE FUND II, L.P.

 

JUNIOR PROMISSORY NOTE

 

	$1,044,477.00	February 2, 2018 (“Issuance Date”)

 

FOR VALUE RECEIVED,
BioHiTech Global, Inc., a Delaware corporation, having an address at 80 Red Schoolhouse Road, Suite 101, Chestnut Ridge, NY
10977 (“Borrower”) promises to pay to the order of Frank E. Celli, with an address at 27 Bradley Lane,
Montvale, NJ 07645 (“Holder”), or his registered assigns, in lawful money of the United States
of America the principal sum of One Million Forty Four Thousand Four Hundred Seventy Seven Dollars ($1,044,477), from the existing,
outstanding indebtedness of the Borrower to the Holder set forth in that certain Fourth Amended and Restated Secured Promissory
Note dated February 1, 2017, up to the amount of Four Million Five Hundred Dollars ($4,500,000) (the “Original Note”),
or such lesser amount as shall equal the outstanding principal amount hereof (such amount, the Outstanding Principal Amount”),
together with interest from the Issuance date of this Junior Secured Term Note (this “Note”) on the unpaid
principal balance at a rate equal to ten and one quarter percent (10.25%) per annum (the “Contract Rate”),
computed on the basis of thirty (30) days per month and a year of 360 days. All unpaid principal, together with any then unpaid
and accrued interest and other amounts payable hereunder, shall be due and payable (i) February 2, 2024 or (ii) on demand of the
Holder following the repayment and satisfaction of that certain $5,000,000 Senior Secured Term Promissory Note dated February 2,
2018 (the “Michaelson Note”) between Borrower, BHT Financial, LLC, a Delaware limited liability company,
BioHiTech America, LLC, a Delaware limited liability company, BioHiTech Europe, PLC, a United Kingdom private limited company,
E.N.A. Renewables, LLC, a Delaware limited liability company, and New Windsor Resource Recovery, LLC, a Delaware limited liability
company, as borrowers, and Michaelson Capital Special Finance Fund II, L.P., a Delaware limited partnership (“MCSFF”)
as Holder (the “Maturity Date”). The Original Note is being modified, amended and restated by this Note.
Nothing in this Note shall be deemed to constitute a novation, termination, waiver, release satisfaction, accord and satisfaction
of the Original Note or any indebtedness evidenced thereby (other than the reduction of the principal amount of the Original Note
to the amount set forth above)

 

1.          Payment
Terms.

 

a.           Current
accrued interest on the Outstanding Principal Amount shall bear monthly compounding interest a rate equal to the Contract Rate,
computed on the basis of thirty (30) days per month and a year of 360 days and will be due and payable on the Maturity Date.

 

b.           Provided
the Michaelson Note is not outstanding, the Outstanding Principal Amount, and any accrued but unpaid interest, will automatically
mature and be due and payable on the earliest of (a) the Maturity Date, (b) a Change of Control (as defined below), or (c) an Event
of Default (as defined in Section 4). For purposes of this Note: the term “Change of Control” means the consummation
of: (A) a sale of all or substantially all of the assets of Borrower; (B) the failure of the owners of Borrower as of the date
of this Note to own at least 51% of the issued and outstanding equity interests of Borrower; or (C) any reorganization, merger
or consolidation of Borrower, other than a reorganization, merger or consolidation in which more than 50% of the combined voting
power of the outstanding voting securities of the surviving or resulting entity immediately following the reorganization, merger
or consolidation is held by the persons who, immediately prior to the reorganization, merger or consolidation, were the holders
of the voting securities of Borrower (it being understood that a transaction or a series of transactions involving additional cash
investments in Borrower shall not constitute a Change of Control).

 

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c.           If
any payment under this Note shall become due on a Saturday, Sunday or public holiday under the laws of the State of New York, such
payment shall be made on the next succeeding business day and such extension of time shall be included in computing interest in
connection with such payment. Payments received will be applied to charges, fees and expenses (including attorneys’ fees),
accrued interest and principal in any order Holder may choose, in its sole discretion.

 

d.           Provided
that the Michaelson Note is not outstanding, the Outstanding Principal Amount may be prepaid in whole at any time or in part from
time to time without penalty or premium.

 

2.          Late
Payments; Default Rate. If Borrower fails to make any payment of principal, interest or other amount coming due pursuant
to the provisions of this Note within ten (10) calendar days of the date due and payable, Borrower shall also pay to Holder a late
charge equal to 5.0% of the amount of such payment (the “Late Charge”). Such ten (10) day period shall not be
construed in any way to extend the due date of any such payment. Following the occurrence of an Event of Default, this Note shall
bear interest at a rate per annum (based on a year of 360 days and actual days elapsed) which shall be 5.0% in excess of the Contract
Rate, but not more than the maximum rate allowed by law (the “Default Rate”). The Default Rate shall continue
to apply whether or not judgment shall be entered on this Note. Both the Late Charge and the Default Rate are imposed as liquidated
damages for the purpose of defraying Holder’s expenses incident to the handling of delinquent payments, but are in addition
to, and not in lieu of, Holder’s exercise of any rights and remedies hereunder or under applicable law, and any fees and
expenses of any agents or attorneys which Holder may employ. In addition, the Default Rate reflects the increased credit risk to
Holder of carrying a loan that is in default. Borrower agrees that the Late Charge and Default Rate are reasonable forecasts of
just compensation for anticipated and actual harm incurred by Holder, and that the actual harm incurred by Holder cannot be estimated
with certainty and without difficulty.

 

3.          Subordination.

 

Holder hereby agrees,
at any time and from time to time, to subordinate Holder’s rights under this Note, including the right of payment hereunder,
to any existing indebtedness of Borrower due to MCSFF (such indebtedness, the “Michaelson Debt”) and to Comerica
Bank (the “Comerica Debt” and collectively, with the Michaelson Debt, the “Senior Debt”).
From and after the date hereof, Holder agrees to enter into and execute any documents, agreements or instruments reasonably requested
by MCSFF and Comerica Bank to reflect the fact that this Note, the right of payment hereunder and the indebtedness evidenced hereby
shall be subordinate to the Senior Debt. Borrower hereby covenants and agrees that the indebtedness evidenced by this Note shall
be senior in payment and priority to all indebtedness of Borrower other than the Senior Debt.

 

    2 

     

    

 

4.          Events
of Default. Each of the following shall constitute an event of default under this Note (each, an “Event of Default”):

 

a.           Borrower’s
failure to pay any amount due under this Note within ten (10) days after its due date;

 

b.           Borrower’s
failure to observe or perform any covenant or other agreement with Holder contained in this Note, which failure is not cured within
thirty (30) days after written notice of such failure (specifying in reasonable detail the facts and circumstances surrounding
such failure) is provided to Borrower by Holder;

 

c.           The
filing by or against Borrower of any proceeding in bankruptcy, receivership, insolvency, reorganization, liquidation, conservatorship
or similar proceeding, and such proceeding is not dismissed or stayed within ninety (90) days of the commencement thereof;

 

d.           Any
assignment by Borrower of its assets or properties for the benefit of creditors, or any levy, garnishment, attachment or similar
proceeding is instituted against Borrower or its assets or properties; and

 

e.           The
occurrence of a material adverse effect, as determined by Holder, in Holder’s sole and absolute discretion, with respect
to (i) the business, assets, properties or financial condition of Borrower, (ii) Borrower’s ability to repay the Outstanding
Principal Amount, or (iii) the validity or enforceability of this Note or the rights and remedies of Holder hereunder.

 

5.          Power
to Confess Judgment. Borrower hereby empowers any attorney of any court of record, after demand is made hereunder, to
appear for Borrower and, with or without complaint filed, confess judgment, or a series of judgments, against Borrower in favor
of Holder or any holder hereof for the entire principal balance of this Note, all accrued interest and all other amounts due hereunder,
together with costs of suit and an attorney’s commission of $5,000 added as a reasonable attorney’s fee, and for doing
so, this Note or a copy verified by affidavit shall be a sufficient warrant. Borrower hereby forever waives and releases all errors
in said proceedings and all rights of appeal and all relief from any and all appraisement, stay or exemption laws of any state
now in force or hereafter enacted. Interest on any such judgment shall accrue at the Default Rate.

 

No single exercise
of the foregoing power to confess judgment, or a series of judgments, shall be deemed to exhaust the power, whether or not any
such exercise shall be held by any court to be invalid, voidable, or void, but the power shall continue undiminished and it may
be exercised from time to time as often as Holder shall elect until such time as Holder shall have received payment in full of
the debt, interest and costs. Notwithstanding the attorney’s commission provided for in the preceding paragraph (which is
included in the warrant for purposes of establishing a sum certain), the amount of attorneys’ fees that Holder may recover
from Borrower shall not exceed the actual and reasonable attorneys’ fees incurred by Holder.

 

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6.          Remedies.

 

a.           Upon
the occurrence and during the continuance of an Event of Default, Holder, at Holder’s option, may declare the entire Outstanding
Principal Amount, together with interest thereon, reasonable attorneys’ fees and costs of collection, to be immediately due
and payable, and such amounts shall become immediately due and payable without notice, demand, presentment or any further action
on the part of Holder. In addition, Holder may exercise all other rights and remedies Holder may have under law or in equity. Any
and all remedies of Holder hereunder shall be cumulative in all respects.

 

b.           The
failure of Holder to exercise Holder’s option to accelerate this Note as provided above, or to exercise any other option
or remedy granted to Holder hereunder, in any one or more instances, or the acceptance by Holder of partial payments or partial
performance, shall not constitute a waiver by Holder of any Event of Default, and all such options and remedies shall remain continuously
in full force and effect. Acceleration of maturity, once claimed hereunder by Holder, may at Holder’s option be rescinded
by written acknowledgment to that effect, but the tender and acceptance of partial payment or partial performance alone shall not
in any way affect or rescind such acceleration of maturity.

 

c.           Holder
shall not be deemed, by any act or omission, to have waived any of Holder’s rights or remedies hereunder unless such waiver
is in writing and signed by Holder, and then only to the extent specifically set forth in the writing. A waiver on one event shall
not be construed as continuing or as a bar to or waiver of any right or remedy to a subsequent event.

 

7.          Waivers
by Borrower. Borrower hereby waives and releases all errors, defects and imperfections in any proceedings instituted by
Holder under the terms of this Note, as well as all benefit that might accrue to Borrower by virtue of any present or future laws
exempting the assets or properties of Borrower, or any part of the proceeds arising from any sale of such assets or properties,
from attachment, levy or sale under execution, or providing for any stay of execution, exemption from civil process, or extension
of time for payment; and Borrower agrees that the assets and properties of Borrower may be levied upon pursuant to a judgment obtained
by virtue hereof, on any writ of execution issued thereon, may be sold upon any such writ in whole or in part in any order desired
by Holder. Borrower waives presentment for payment, demand, notice of demand, notice of nonpayment or dishonor, protest and notice
of protest of this Note, and all other notices in connection with the delivery, acceptance, performance, default or enforcement
of the payment of this Note, and agrees that the liability of Borrower shall be unconditional, without regard to the liability
of any other party.

 

8.          Representations
and Warranties. Borrower represents and warrants as of the date hereof the following:

 

a.           Authority;
Enforceability. Borrower has full power and authority to execute and deliver this Note and to perform its obligations hereunder.
Borrower has duly executed and delivered this Note, and this Note constitutes its legal, valid and binding obligations enforceable
in accordance with their terms.

 

b.           Actions,
Suits or Proceedings. There are no actions, suits or proceedings pending or, to the knowledge of Borrower, threatened against
or affecting it or any of its property, or before or by any governmental authority, and, Borrower is not in default with respect
to any order, writ, injunction, decree or demand of any court or any governmental authority.

 

    4 

     

    

 

c.           No
Conflicts. The execution, delivery and performance of this Note will not (i) conflict or be inconsistent with, or result in
any breach of, or constitute a default under, or result in the creation or imposition of (or create the obligation to create or
impose) any lien or encumbrance (except as set forth herein) under any deed of trust, indenture, mortgage, lease, bank loan or
credit agreement, or other agreement, contract or instrument to which Borrower is a party or by which it or its property may be
bound (other than such conflicts, inconsistencies, breaches or defaults that have been waived in writing by the appropriate party);
or (ii) contravene any provision of any law, statute, rule or regulation or any order, writ, injunction or decree of any court
or governmental instrumentality.

 

d.           Approvals.
No order, consent, approval, license, authorization or validation of, or filing, recording or registration with (except as have
been obtained or made prior to the date hereof), or exemption by, any governmental or public body or authority, or any subdivision
thereof, or any other Person (other than MCSFF and Comerica) is required to authorize, or is required in connection with, (i) the
execution, delivery and performance of this Note or (ii) the legality, validity, binding effect or enforceability of this Note.

 

9.          Miscellaneous
Provisions.

 

a.           Notices.
All notices, demands, requests, consents, approvals and other communications required or permitted hereunder must be in writing
and will be effective upon receipt. Such notices and other communications may be hand delivered, sent by first class mail, sent
by electronic transmission with confirmation of delivery and a copy sent by first class mail, or sent by nationally recognized
overnight courier service, to the addresses for Holder and Borrower set forth above or to such other address as either may give
to the other in writing for such purpose. If a notice is sent via first class mail, it will be deemed to have been received two
days after being deposited in the mail. If a notice is sent by nationally recognized overnight courier service, it will be deemed
to have been received one day after being deposited with such courier service.

 

b.           Severability;
Construction. If any provision of this Note is found to be invalid by a court of law, all the other provisions of this Note
shall remain in full force and effect. Whenever the singular number is used in this Note and when required by the context, the
same shall include the plural and vice versa, and the masculine gender shall include the feminine and neuter genders and vice versa.

 

c.           Successors
and Assigns. This Note shall bind Borrower and its successors and assigns, and the benefits hereof shall inure to the benefit
of Holder and its successors and assigns; provided, however, that Borrower may not assign this Note in whole or in part without
Holder’s written consent and Holder may assign this Note in whole or in part without Borrower’s written consent.

 

d.           Governing
Law. This Note will be interpreted and the rights and liabilities of Borrower and Holder determined in accordance with the
laws of the State of New York, excluding its conflicts of law rules.

 

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e.           No
Presumption. Borrower and Holder have participated jointly in the negotiation and drafting of this Note, and, in the event
an ambiguity or question of intent or interpretation arises, this Note shall be construed as jointly drafted by Borrower and Holder
and no presumption or burden of proof shall arise favoring or disfavoring either party by virtue of the authorship of any provision
of this Note.

 

f.            Waiver
of Jury Trial. Borrower irrevocably waives any and all rights Borrower may have to a trial by jury in any action, proceeding
or claim of any nature relating to this Note, any documents executed in connection with this Note or any transaction contemplated
in any of such documents. Borrower acknowledges that the foregoing waiver is knowing and voluntary.

 

g.           No
Waiver by Holder. No failure or delay on the part of Holder in exercising any right, power or privilege hereunder, and no course
of dealing between the Borrower and Holder shall operate as a waiver thereof; nor shall any single or partial exercise of any right,
power or privilege hereunder or preclude any other or further exercise thereof or the exercise of any other right, power or privilege
hereunder. The rights, powers and remedies herein expressly provided are cumulative and not exclusive of any rights, powers or
remedies which Holder would otherwise have. No notice to or demand on Borrower in any case shall entitle Borrower to any other
or further notice or demand in similar or other circumstances or constitute a waiver of the rights of Holder to any other or further
action in any circumstances without notice or demand. The acceptance by Holder of any payment hereunder which is less than payment
in full of all amounts due and payable at the time of such payment shall not, unless otherwise expressly agreed to by Holder in
writing at such time, constitute a waiver of the right to exercise any of Holder’s rights, remedies, recourses or powers
at that time, or any subsequent time, or nullify any prior exercise of any such right, remedy, recourse or power, except as and
to the extent otherwise required by applicable law.

 

h.           Survival.
All indemnities set forth herein including, shall survive the execution and delivery of this Note and the making and repayment
of the loan hereunder.

 

i.             Entirety.
This Note represents the final agreement between Holder and Borrower and may not be contradicted by evidence of prior, contemporaneous,
or subsequent oral agreements by such parties. There are no unwritten oral agreements between Holder and Borrower.

 

[signature page follows]

 

    6 

     

    

 

WITNESS the
due execution hereof as a document under seal, as of the date first written above, with the intent to be legally bound hereby.

 

	 	BORROWER:	 
	 	 	 	 
	 	BIOHITECH GLOBAL, INC.	 
	 	 	 	 
	 	By:	 	(SEAL)
	 	 	Brian C. Essman, CFO	 

 

	Acknowledged and agreed to:	 
	 	 
	 	 
	FRANK E. CELLI	 

 

	
        STATE OF                                                         )

                                                                                     )

        COUNTY
        OF                                                 
            )

         

        On this, the 2nd day
        of February, 2018, before me, a Notary Public, the undersigned officer, personally appeared Brian C. Essman, who acknowledged himself
        to be the CFO of BioHiTech Global, Inc., a Delaware corporation, and that he, as such officer, being authorized to do so, executed
        the foregoing instrument for the purposes therein contained by signing on behalf of the company as such officer and further acknowledged
        that he executed the same with the knowledge and intent that the foregoing instrument contains a grant by corporation of powers
        of attorney including a warrant of attorney conferring authority to confess judgment.

         

        IN WITNESS WHEREOF, I
        hereunto set my hand and official seal.

        _______________________

        Notary Public

         

        My commission expires:
	
        STATE OF                                              )

                                                                          )

        COUNTY OF                                           )

         

        On this, the 2nd day
        of February, 2018, before me, a Notary Public, the undersigned officer, personally appeared Frank E. Celli, personally known to
        me or proved to me on the basis of satisfactory evidence, to be the individual whose name is subscribed to the within instrument
        and acknowledged to me that he executed the same in his capacity, and that by his signature on the instrument, the individual or
        the person upon behalf of which the individual acted, executed the instrument.

         

        IN WITNESS WHEREOF, I
        hereunto set my hand and official seal.

         

        _________________________

        Notary Public

         

        My commission expires:

         

 

    7Exhibit
10.1

 

LICENSE
AND EXCLUSIVE MANUFACTURING AGREEMENT

 

This License and Exclusive Manufacturing
Agreement (the “Agreement”) is entered into on the 21st day of August, 2017 (the “Effective Date”), by
and between Misonix, Inc., a New York corporation, with offices at 1938 New Highway, Farmingdale, New York 11735 USA (“Misonix”),
and Hunan Xing Hang Rui Kang Bio-technologies Co., Ltd. a Chinese corporation with offices at 26/F., Times Tower, 391-407 Jaffe
Road, Wan Chai, Hong Kong (the “Company”) under the following terms and conditions. Misonix and Company may be referred
to herein individually as a “Party” and collectively as the “Parties.”

 

BACKGROUND

 

WHEREAS, Company has the knowledge,
expertise, personnel and facilities to develop, manufacture, promote and commercialize the Product in the Territory for surgical
applications;

 

WHEREAS, Misonix and Company desire
to license and transfer certain manufacturing technology associated with the Product, as further specified herein; and

 

WHEREAS, Misonix desires to grant
to Company certain development, manufacturing and commercialization rights with respect to the Product and to appoint Company,
on an exclusive basis, to promote, sell and distribute the Product in the Territory, in each case as further specified herein.

 

NOW, THEREFORE, the Parties hereby
agree as follows:

 

1.            DEFINITIONS

 

1.1          “Commercialization”
means any and all activities of importing, marketing, promoting, distributing, offering
for sale, or selling a Product, including pre-commercial launch market development activities conducted in anticipation of Regulatory
Approval of Product, preparing advertising and promotional materials, sales force training, marketing, promoting and selling the
Product, and interactions and correspondence with the relevant regulatory authorities. Commercialization does not include manufacturing
of the Product. When used as a verb, “Commercialize” means to engage in Commercialization.

 

1.2          “Commercially
Reasonable Efforts” means the level of efforts and use of resources consistent with the exercise of reasonable and prudent
business judgment, as normally used by a Third Party similarly situated to a Party in the performance of its contractual obligations
with the aim to commercialize a medical device having similar market potential as the Product. 

 

1.3          “Confidential
Information” means any data, know-how or other information relating to the Product or otherwise relating to the subject matter
of this Agreement that a Party discloses to the other Party, directly or indirectly, in writing, orally or otherwise and identifies
as confidential, proprietary or some similar designation, which shall be so identified in writing within 60 days of disclosure
with respect to any information orally disclosed, or which the recipient knows or should have reason to know is confidential. Notwithstanding
the foregoing, information shall not be Confidential Information if:

 

		(a)	It is known to the receiving Party at the time of disclosure without any obligations of confidentiality,
as demonstrated by the receiving Party’s written records made prior to such disclosure;

 

		(b)	It is disclosed to the receiving Party by a Third Party who has a right to make such disclosure;

 

    
Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

     

    

 

		(c)	It was or it becomes publicly known and made generally available through no action or inaction
of the receiving Party; or

 

		(d)	It is independently developed by the receiving Party without use of the disclosing Party’s
Confidential Information, as evidenced by the receiving Party’s written records.

 

1.4          “Development”
means all activities as may be required or recommended from time to time by a Governmental Authority to obtain, maintain or expand
Regulatory Approval of the Product. Development includes all applicable activities related to preclinical testing, test method
development, process development, manufacturing scale up, quality assurance/quality control, clinical studies, seeking Regulatory
Approval and otherwise handling regulatory affairs, statistical analysis and report writing performed with respect to the Product.
Development does not include manufacturing or Commercialization. When used as a verb, “Develop” means to engage in
Development.

 

1.5          “Disposables”
means disposable probes made for use in conjunction with the Generator and the Hand Piece.

 

1.6          “GDP”
means Good Distribution Practices as specified in Articles 76 to 85 of Directive 2001/83/EC of the European Parliament and of the
Council of 6 November 2001 and the guidelines for Good Distribution Practices as promulgated in “Guidelines on Good Distribution
Practice of Medicinal Products for Human Use” (2013/C 343/01), as amended from time to time. 

 

1.7          
“GMP” means Good Manufacturing Practices as described in EC Directive 2003/94 and the guidelines for Good Manufacturing
Practice as promulgated in Volume IV of the Rules Governing Medicinal Products in the European Union, as amended from time to time.

 

1.8          “Generator”
means the generator described in Schedule 1.16.

 

1.9          “Governmental
Authority” means any court, tribunal, arbitrator, agency, legislative body, commission, department, bureau, official or other
entity of (a) any government of any country, and (b) a federal, state, province, region, county, city or other local political
subdivision of any country, and (c) any supranational body.

 

1.10         “Hand
Piece” means the handpiece described in Schedule 1.16.

 

1.11         “Know-How”
means all inventions, discoveries, data, information (including scientific, technical or regulatory information), processes, methods,
techniques, materials, technology, results, analyses, laboratory, pre-clinical and clinical data, or other knowhow, whether or
not patentable, including without limitation manufacturing methodologies and techniques, clinical and non-clinical safety and efficacy
studies, and marketing studies.

 

1.12         “Laws”
means the laws, statutes, codes, regulations, judgments, orders and ordinances of a Governmental Authority, and any implementing
legislation or other applicable laws promulgated by the Governmental Authority in any country in the Territory, as any of the same
may be amended from time to time, and all directives, regulations, promulgations, guidance and guidelines promulgated thereunder
and having jurisdiction over or related to the development, registration, approval, marketing, promotion, distribution, storage
and sale of the Product in any country in the Territory. 

 

1.13         “MA”
or “Marketing Authorization” means the authorization granted by the appropriate Governmental Authority approving placing
the Product on the market in any country in the Territory as a medical device, together with all subsequent submissions, supplements
and amendments thereto. 

 

1.14        
“MAA” or “Marketing Authorization Application” means the application, health registration, or other regulatory
submission filed in accordance with the Laws of the relevant Governmental Authorities to obtain the Marketing Authorization of
the Product in any country in the Territory.

 

    
Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

     

    

 

1.15          “Misonix
Know-How” means Know-How that Misonix controls at any time during the Term that is necessary or useful to manufacture, Develop
or Commercialize the Product.

 

1.16          “Product”
means the Generator, Hand Piece, Hand Piece subassemblies, and Disposables products sold by Misonix as of the Effective Date under
the brand name SonaStar and meeting the specifications set forth in Schedule 1.16. For the avoidance of doubt, no rights
to Misonix products other the Product are conferred by this Agreement.

 

1.17          “Quarter”
means any three month period beginning on January 1, April 1, July 1 or October 1.

 

1.18          “Regulatory
Approval” means all approvals, including, where applicable, the Marketing Authorization, schedule classifications, permits,
licenses, filings and certifications of any Governmental Authorities, all to the extent necessary for the promotion, storage, distribution
and sale of the Product in the Territory.

 

1.19          
“Term” means the duration of this Agreement as provided in Section 13.1

 

1.20          “Territory”
means China, Hong Kong and Macau. 

 

1.21          “Third
Party” means any person or entity other than Misonix or Company.

 

1.22          “Trademarks”
means “SONASTAR” as used in connection with the Product. 

 

2.            GRANT
OF LICENSE

 

2.1          License
to Company. Subject to the terms and conditions of this Agreement, Misonix hereby grants to Company the sole license under
the Misonix Know-How to manufacture, Develop and Commercialize the Product in the Territory; provided that with respect to sub-assemblies
of the Hand Pieces, such license shall extend solely to the right to assemble, Develop and Commercialize the Hand Piece in the
Territory. 

 

3.            FEES,
ROYALTIES & PAYMENTS 

 

3.1          Upfront
Payment & Supply. As partial consideration for the specified Generators to be provided by Misonix to Company, and for the
rights granted to Company by Misonix pursuant to the terms of this Agreement, Company shall pay Misonix a non-refundable, non-creditable
payment equal to Five Million Dollars (US$5,000,000) by wire transfer of five installments of One Million Dollars (US$1,000,000)
each on the payment due dates set forth in Table 3.1 below. Such installments shall be allocated in accordance with Table 3.1 below
to: (i) the license provided for in Section 2.1 (amounts set forth under the heading “License Fee”); and (ii) the Generators
to be supplied as set forth in Table 3.1 (amounts set forth under the heading “Total Generator Sales”).

 

Table
3.1

	Payment	Payment Due Date	Generators	Generator Delivery Date	Price per Generator	Total Generator Sales	License Fee	Total Payment Due
	1	On Signing	[***]	30 SEP 2017	[***]	[***]	[***]	$1,000,000
	2	28 SEP 2017	[***]	31 OCT 2017	[***]	[***]	[***]	$1,000,000
	3	27 OCT 2017	[***]	30 NOV 2017	[***]	[***]	[***]	$1,000,000
	4	28 NOV 2017	[***]	31 DEC 2017	[***]	[***]	[***]	$1,000,000
	5	28 DEC 2017	[***]	31 JAN 2018	[***]	[***]	[***]	$1,000,000

 

    
Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

     

    

 

3.2          Continuing
Product Supply. Within ten (10) days of the Effective Date of this Agreement and prior to the tenth (10th) day of each Quarter
thereafter, Company will provide Misonix with a written twenty four (24) month rolling forecast of Company’s estimated Product
requirements (specifying the amount of Generators beyond the quantities specified in Section 3.1, Disposables and Hand Pieces and
Hand Piece subassemblies) (the “Rolling Forecast”). Out of the twenty (24) month Rolling Forecast, the first twelve
(12) months shall be binding for Company and shall be for at least the quantities specified in the Annual Obligation (the “Binding
Forecast”) provided that no forecast applicable after the third anniversary of the Effective Date shall be binding on Misonix.

 

3.3          Purchase
Orders. During the first three (3) years after the Effective Date, and prior to the tenth (10th) day of each Quarter, Company
shall submit a Purchase Order to Misonix at quantities no lower than those in the Binding Forecast and at the prices of: (a) [***]
per Generator beyond the quantities specified in Section 3.1, and (b) [***] per Disposable probe for Company’s purchases
of Generators and Disposables pursuant to this Agreement (each, a “Purchase Order”). In addition, Company may order
Hand Pieces and Hand Piece subassemblies on a Purchase Order basis pursuant to the order process described in this Section 3. For
the avoidance of doubt, all transfers of goods under this Agreement shall not be subject to the terms and conditions contained
on any Purchase Order and acceptance thereof except insofar as any such Purchase Order and acceptance establishes the quantity
and requested delivery dates for such Product. 

 

3.4          Acceptance
of Purchase Orders. Provided Company submits its Purchase Order in accordance with the Binding Forecast and otherwise in compliance
with Section 3, within thirty (30) days from receipt of a Purchase Order, Misonix will review the requested quantities and Misonix
will: (i) if the requested quantities are consistent with the Binding Forecast, accept the Purchase Order, or (ii) if the requested
quantities are greater than the Binding Forecast, confirm with Company the quantities greater than the Binding Forecast that Misonix
is able to deliver, if any. 

 

3.5          Delivery.
All Products delivered by Misonix pursuant to a valid Purchase Order will be Ex Works (Incoterms 2010) at Misonix’s facilities
located at Farmingdale, New York USA.

 

3.6          Royalties.
After the third anniversary of the Effective Date, Company shall be solely responsible for the manufacture and supply of Generators
and Disposables for distribution in the Territory. For all Generators and Disposables manufactured by Company at any time during
the Term, Company shall pay Misonix a royalty of: (a) [***] per Generator, and (b) [***] per Disposable (each a “Royalty”).
Company and Misonix shall negotiate in good faith on the royalty rate applicable to Hand Pieces and Hand Piece subassemblies purchased
for use with the Generators or Disposables.

 

3.7          Minimum
Annual Royalty. Company is obligated to pay Misonix a minimum annural Royalty for at least [***] Generators in each of 2019,
2020, and 2021 (the “Annual Obligation”).

 

3.8          Quarterly
Reports. Within thirty (30) days after the end of each Quarter, Company will deliver to Misonix a report setting forth for
such Quarter the following information: (a) the gross sales and net sales of the Generators, Hand Pieces and Disposables in the
Territory, (b) the number of units manufactured by Company, (c) the royalties due hereunder for the manufacture of Products (by
applicable component), and (d) the applicable exchange rate as determined in accordance with this Agreement. The total royalty
payable for such Quarter shall be paid by Company simultaneously with the submission of each Quarterly report. 

 

3.9          Records
and Audit. Company will keep and maintain accurate and complete records regarding the information necessary to substantiate
the reports due pursuant to this Agreement for three (3) years. Upon fifteen (15) days prior written notice from Misonix, Company
will permit an independent certified public accounting firm of internationally recognized standing, selected by Misonix, to examine
the relevant books and records of Company as may be reasonably necessary to verify the payments due under this Agreement. The accounting
firm will be provided access to such books and records at Company’s facility or facilities where such books and records are
normally kept and such examination will be conducted during Company’s normal business hours. Upon completion of the audit,
the accounting firm will provide both Misonix and Company a written report disclosing whether the reports submitted or payments
made by Company are correct or incorrect and the specific details concerning any discrepancies. If the accountant determines that
the report submitted or payments made by Company understated the amount due to Misonix, then Company will promptly pay such understated
amount, and, if, during any calendar year, the understated amount is more than five percent (5%) of the amount that was owed to
Misonix, Company will reimburse Misonix for the expense incurred by Misonix in connection with the audit and promptly pay Misonix
a ten percent (10%) surcharge on such shortfall.

 

    
Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

     

    

 

3.10          Currency.
All amounts payable and calculations hereunder will be in U.S. Dollars. If, due to restrictions or prohibitions imposed by national
or international authority, payments cannot be made as provided in this Agreement, the Parties will consult with a view to finding
a prompt and acceptable solution, and the paying Party will deal with such monies as the other Party may lawfully direct at no
additional out-of-pocket expense to the paying Party.

 

3.11          Interest.
Any late payments shall bear interest, to the extent permitted by law, at two and one half percent (2.5%) above the then-applicable
short-term three-month London Interbank Offered Rate (LIBOR) as reported in the Financial Times on the date payment is due.

 

4.          COMMERCIALIZATION

 

4.1          Sales
Outside the Territory. No rights are granted to Company to market or sell the Product outside the Territory. To the extent
permitted by applicable Laws, Company shall not, directly or indirectly, distribute, market, promote, manufacture, or sell the
Product outside the Territory.

 

5.            TECHNOLOGY
TRANSFER

 

5.1          Technology
Transfer. Misonix shall transfer to Company the manufacturing processes developed by or on behalf of Misonix for the Generator
and the Disposables. Misonix shall provide a transfer of the Generator and Disposable manufacturing technology such that Company
is able to establish its own Generator and Disposable manufacturing operations, and is able to assemble Hand Pieces from subassemblies
purchased from Misonix. Company shall reimburse Misonix, within 30 days of Misonix providing an invoice, for all direct and out-of-pocket
costs incurred by Misonix activities associated with the transfer contemplated by this Section 5.1, in an aggregate amount up to
one million dollars (U.S. $1,000,000). Misonix and Company shall in good faith seek to establish a mutually agreeable plan for
accomplishing the technology transfer in a commercially reasonable manner. Misonix shall (a) provide necessary documentation to
complete the technology transfer, including necessary portions of the Product specifications and (b) participate in technology
transfer activities, including pilot batch runs at Company facilities, necessary to manufacture the Generator and the Disposables
at Company facilities and to assemble Hand Pieces from subassemblies purchased from Misonix. Such technology transfer shall take
place within twenty four (24) months after the Effective Date. After Misonix has received one million dollars (U.S. $1,000,000)
in direct and out-of-pocket costs from Company for Misonix’s technical assistance, the Parties shall negotiate in good faith
an agreement that reimburses Misonix for any additional technical assistance requested by Company.

 

6.            DUTIES
OF COMPANY

 

6.1          General
Conduct. Company, in the performance of its duties and obligations hereunder, shall not engage in any deceptive, misleading,
illegal or unethical business practice. 

 

6.2          Customer
Support. For Products manufactured by Misonix, Company shall promptly report to Misonix all suspected Product defects or other
problems relating to the use of the Product and shall keep Misonix reasonably informed of customer complaints concerning such defects
or problems. 

 

6.3          Sales
Requests Outside the Territory. If Company receives any request or inquiry related to sales of the Product outside of the Territory,
Company shall within five (5) business days inform Misonix of such requests or inquiries.

 

    
Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

     

    

 

6.4          Product
Recall. Within thirty (30) days of the Effective Date, Company shall prepare and provide to Misonix for approval, certain standard
operating procedures for potential recalls in the Territory of Products manufactured by Misonix . 

 

6.5          Public
Statements Regarding Products. For Products manufactured by Misonix: (a) Company shall be responsible for disseminating accurate
information regarding the Products based on product labeling and promotional materials for the Products, and (b) Company shall
seek to prevent claims or representations in respect of the Products or the characteristics of the Products (e.g., safety or efficacy)
being made by or on behalf of it that do not represent an accurate or fairly balanced summary or explanation of the product labeling
for the Products in the country in question. 

 

6.6          Use
of the Generator, Hand Pieces and Disposables. Company shall use the Generators, Hand Pieces and Disposables solely for the
furtherance of this Agreement and shall not use Generators, Hand Pieces, Disposables or any other information or materials incorporating
one or more essential elements thereof or produced therefrom (including any Confidential Information) for any profit-making or
commercial purpose or for any purpose other than those expressly contemplated by this Agreement. Without limiting the foregoing,
the Hand Pieces are not to be analyzed, modified or reverse engineered for any purpose.

 

7.            REGULATORY
MATTERS

 

7.1          Regulatory
Approvals. Company shall use Commercially Reasonable Efforts to obtain and maintain, in its name, the MAs required by any Governmental
Authority for the promotion, storage, distribution and sale of the Product in the Territory, including preparing and filing, at
Company’s expense, all necessary applications and supporting documentation or any other activities related thereto. Misonix
shall provide such data, reports and other information in its possession that is required to be contained in an MAA. 

 

7.2          Marketing
Authorization Holder. Company shall be the Marketing Authorization holder; provided,
that it acknowledges that Misonix shall be the beneficial owner of such Marketing Authorizations. Company shall not be entitled
to transfer, assign, encumber or otherwise convey the Marketing Authorizations to any Third Party without the written consent of
Misonix. Within ten (10) days of a written request by Misonix, Company shall relinquish its Marketing Authorization for the Product.

 

7.3          Communications
with Governmental Authorities. 

 

(a)          Company
shall be responsible for interfacing, corresponding and meeting with all Governmental Authorities in connection with the Marketing
Authorizations in all countries of the Territory.

 

(b)          Company
shall promptly inform Misonix of any official communications with Governmental Authorities regarding the Marketing Authorization
in any country in the Territory, including (i) any condition or requirement proposed by any Governmental Authority as a condition
to granting Marketing Authorization of the Product and (ii) any request or requirement to change the Product specifications.

 

(c)          Company
shall provide Misonix copies of all communications with any relevant Governmental Authorities regarding the MA in any country of
the Territory, along with English translations thereof for the purposes of Misonix exercising its rights or complying its obligations
under this Agreement. Misonix shall have the right to attend any meetings between Company and any Governmental Authorities, to
the extent permitted by the Laws and the Governmental Authorities.

 

7.4          Storage
and Distribution. Company shall: (a) adhere to all requirements of applicable Laws that relate to the storage and distribution
of the Product in the Territory and comply with GDP; (b) store the Product in a safe and secure environment and ensure that such
Product is adequately insured; and (c) comply with all of Misonix’s instructions with respect to the storage and distribution
of the Product.

 

    
Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

     

    

 

7.5          Product
Variations. Except as necessary for the packaging and labeling of the Product, Company may not modify the Product or the description
of the Product or its manufacturing process in the MAs, without the prior written consent of Misonix.

 

8.          RECORDS

 

8.1          Records
and Reports. For Products manufactured by Misonix, Company shall maintain (a) complete and accurate records of the distribution
of the Products to the customers in the Territory covering information which is requisite to Misonix’s recall of the Products
as necessary, including, without limitation the date of shipment, quantity shipped and lot number of the Products shipped, (b)
complete and accurate records of any adverse events or customer complaints relating to the Products, (c) complete and accurate
records of aggregate purchases and resales of the Products, (d) complete and accurate records of its expenditures related to the
marketing, promotion and sale of the Products, and (e) complete and accurate records relating to the performance of its obligations
under this Agreement, and shall permit, or cause to permit, Misonix or its agents at any time during regular business hours to
examine such records for purposes related to the performance of the Agreement. Company shall provide copies of all such records
and reports to Misonix within ten (10) Business Days of Misonix’s prior written request. Company shall maintain all such
records for a minimum of five (5) years after expiration or termination of this Agreement, or longer as required to be in compliance
with applicable laws and regulations. 

 

8.2          Audits.
Misonix has the right to authorize a representative of Company or to engage a third party, at Misonix’s expense, to audit
Company’s all records and reports provided for under Section 8.1 and to verify Misonix’s products regulatory compliance
records and systems. Company shall fully cooperate, at no additional charge to Misonix, in any such audit conducted by or on behalf
of Misonix. Company shall immediately take all necessary or desirable corrective and preventive actions to resolve any issues discovered
by any such audit conducted by or on behalf of Misonix.

 

9.        
  MARKETING ACTIVITIES

 

9.1          Promotional
Materials. For Products manufactured by Misonix, Company shall use solely promotional materials prepared by or approved by
Misonix.

 

9.2          Representations.
For Products manufactured by Misonix, Company, its employees, officers, directors, agents and other personnel shall not make any
false or misleading representations to customers or others regarding Misonix or the Products. Company and its employees and agents
shall not make any representations, warranties or guarantees with respect to the specifications, features or capabilities of the
Products that are not contained within Misonix-approved documentation accompanying the Products or Misonix’s literature describing
the same, including Company’s standard limited warranty and disclaimers.

 

9.3          Acting
in Good Faith. In no event shall Misonix or Company be obligated under this Agreement to take any action or omit to take any
action that it believes in good faith would cause it to be in violation of any laws and regulations of the Territory or any other
applicable laws as promulgated and implemented in jurisdictions other than the Territory.

 

9.4          Independent
Contractor. The relationship of Misonix and Company established by this Agreement is that of independent contractors and nothing
contained in this Agreement shall be construed to give either party the power to direct or control the day-to-day activities of
the other or allow one party to create or assume any obligation, whether express or implied, on behalf of the other for any purpose
whatsoever, except that Misonix shall have the warranty obligations with respect to all Hand Piece sub-assemblies and other Products
sold to Company. All financial obligations associated with Company’s business are the sole responsibility of Company. All
sales and other agreements between Company and Company’s customers are Company’s exclusive responsibility and shall
have no effect on Company’s obligations under this Agreement and Misonix shall in no event be liable or deemed to be liable
under such agreements.

 

    
Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

     

    

 

10.        
  INTELLECTUAL PROPERTY RIGHTS

 

10.1          Trademarks.
Misonix hereby grants Company an exclusive, non-transferable, non-assignable right to use the Trademarks solely to promote, distribute
and sell the Product in the Territory. Company acknowledges the Trademarks are and shall remain the sole property of Misonix and
shall not use them in any way that might prejudice their distinctiveness or validity. Company shall have no right to use the Trademarks
except as provided herein. Except for its own corporate trademarks, service marks, trade names and domain names, (a) Company shall
not register any domain names in relation to the Product without the prior written approval of Misonix and (b) Company shall not
use any trademarks other than the Trademarks in relation to the Product without Misonix’s prior written consent. Company
shall not use any trademarks or trade names likely to cause confusion with the Trademarks in any country in the Territory.

 

10.2          Branding.
For Products manufactured by Misonix, Company shall not alter Misonix brand elements or the affixed Trademarks. For Products manufactured
by Company, and except for the Trademark, Company shall label Products with its own brand elements and shall not reference any
Misonix brand elements.

 

11.            WARRANTIES
AND LIMITATIONS OF LIABILITY

 

		11.1	Mutual Representations. Each of the Parties represents and warrants to the other that, as
of the Effective Date:

 

		(a)	It is duly organized and validly existing under the Laws of its country of incorporation,
and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof;

 

		(b)	It is duly authorized to execute and deliver this Agreement and to perform its obligations
hereunder, and the person(s) executing this Agreement on its behalf has(ve) been duly authorized to do so by all requisite corporate
action;

 

		(c)	This Agreement is legally binding upon it and enforceable in accordance with its terms. The
execution, delivery and performance of this Agreement by it does not conflict with any agreement, instrument or understanding,
oral or written, to which it is a party or by which it may be bound; and

 

		(d)	It is aware of no action, suit or inquiry or investigation instituted by any Governmental
Authority that questions or threatens the validity of this Agreement.

 

		11.2	Company’s Warranties

 

Company represents and warrants
to Misonix that:

 

11.2.1          it
has the requisite power and authority to enter into and perform the obligations of this Agreement;

 

11.2.2          its
obligations under this Agreement constitute legal and binding obligations of Company in accordance with the terms and provisions
hereof;

 

11.2.3          the
execution, delivery, and performance of this Agreement shall not: (a) result in a breach of any provision of the articles of incorporation
or association of the Company; (b) result in a breach of or constitute a default under any instrument by which Company is bound;
(c) result in a breach of any order, judgment or decree of any court or governmental agency to which Company is a party or by which
Company is bound, or (d) require the consent of any party other than the Company or the board of directors of the Company;

 

11.2.4          it
has obtained all regulatory approvals necessary for the importation, marketing, manufacture, distribution, sale, and exploitation
of the Products in the Territory including without limitation the PRC medical device distribution license and import license, and
such regulatory approvals shall remain valid and effective during the Term;

 

    
Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

     

    

 

11.2.5          it
has adequate facilities, financing, and personell to perform, at its own expense, its obligations under this Agreement;

 

11.2.6          it
shall not provide any information or make any request to mislead Misonix with respect to Company’s compliance with applicable
Laws;

 

11.2.7          it
will maintain the validity and effectiveness of all licenses, permits, authorizations and other governmental approvals as necessary
to perform its obligations under this Agreement; and

 

11.2.8          for Products manufactured
by Misonix, Company shall provide the warranty and disclaimers specified in Schedule 11.2.8 to all customers and end users,
and shall provide no other warranties and disclaimers; and,  

 

11.2.9          it
will not cause any act or omission that might reasonably be expected to prejudice the integrity, goodwill or reputation of Misonix.

 

		11.3	Non-Conforming Products. Misonix shall have no responsibility or liability for any product
manufactured, distributed or sold that is not in strict compliance with Schedule 1.16.

 

		11.4	Product Warranties. EXCEPT AS ESTABLISHED IN THIS
SECTION 11 AND SCHEDULE 11.2.8, MISONIX MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND WITH RESPECT TO THE PRODUCT, EXPRESS
OR IMPLIED, INCLUDING ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

 

12.          INDEMNIFICATION
AND INSURANCE

 

		12.1	Indemnity. Company shall indemnify and defend Misonix, and their respective directors, employees,
affiliates, agents and representatives from and against all losses, liabilities, damages and expenses of any kind (including reasonable
attorney’s fees and expenses) suffered or incurred in connection with any claims, demands, actions or other proceedings (including
those brought by Third Parties) which: (a) arise from or are attributable to any breach of this Agreement, failure to comply with
applicable Laws, negligence or willful misconduct on the part of Company or any of its directors, employees, agents or representatives
relating to any of Company’s obligations under this Agreement; (b) are attributable to the manufacture packaging, labeling
and storage of the Products by the Company; (c) arise from or are attributable to the infringement of the patent rights of any
Third Party caused by the manufacture of the Product by or for Company, to the extent such manufacture was not following the manufacturing
processes described in writing by Misonix; or (d) arise from or are attributable to Company’s breach of its representations,
warranties or covenants under this Agreement.

 

		12.2	Conditions of Indemnification. If Misonix expects to seek indemnification under Section
12.1, it shall promptly give notice to Company of the basis for such claim of indemnification. If indemnification is sought as
a result of any Third Party claim or suit, such notice to Company shall be within 15 days after receipt by Misonix of such claim
or suit. Misonix shall have full control over the defense of such claim or suit; provided, that Company shall have the right to
participate, at its own expense, with counsel of its own choosing, in such defense. Company shall fully cooperate with Misonix
in the defense of all such claims or suits.

 

		12.3	Insurance. Company shall for the Term and five years thereafter maintain comprehensive general
liability insurance, including product liability insurance coverage, in accordance with any obligations imposed by local Laws,
with a minimum limit of at least five thousand dollars (U.S. $5,000) per claim and three hundred thousand dollars (U.S. 300,000)
in the annual aggregate.

 

    
Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

     

    

 

		12.4	Liability for Death or Personal Injury. Nothing in this Agreement shall operate to limit
or exclude any Party’s liability for death or personal injury arising from its negligence, for fraud or for any other liability
that, by law, cannot be limited or excluded.

 

		12.5	Limitation of Liability. EXCEPT WITH RESPECT TO COMPANY’S INDEMNIFICATION OBLIGATIONS
IN THIS SECTION 12, IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR PUNITIVE, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES, WHETHER
BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE) OR ANY OTHER LEGAL THEORY AND IRRESPECTIVE OF WHETHER THE OTHER PARTY HAS BEEN ADVISED
OF THE POSSIBILITY OF ANY SUCH LOSS OR DAMAGE.

 

13.          TERM
AND TERMINATION

 

		13.1	Term. This Agreement shall commence on the Effective Date and, unless earlier terminated
pursuant to this Section 13, shall continue for 10 years (the “Intitial Term”). The Initial Term may be extended by
the Parties for successive five (5) year renewal terms (each a “Renewal Term”) by the Parties’ written mutual
agreement which may be withheld in either Party’s sole discretion. The Initial Term and all Renewal Terms (if any) are collectively
referred to herein as the “Term”). Section 2.1 shall survive any expiration of the Term. Upon Misonix’s notice
to Company of Company’s uncured breach of this Agreement (including any breach of Company’s payment obligations in
Section 3), and in addition to Misonix’s rights in law, equity, and under Section 13.2, the license rights granted by Section
2 shall terminate.

 

		13.2	Termination for Breach of Contract. Either Party may, without prejudice to any other remedies
available to it at law or in equity, terminate this Agreement in its entirety, in the event that another Party breaches any of
its obligations hereunder and has not cured such breach within 60 days after written notice thereof; provided that if such breach
relates to a failure to make any payment when due then such breach must be cured within 20 days following written notice thereof.

 

		13.3	Termination for Insolvency. Without prejudice to any other remedies available to it at law
or in equity, if at any time any Party shall (a) become insolvent or shall cease to carry on its business, (b) go into liquidation,
whether compulsory or voluntary (other than a voluntary liquidation for the purposes of reconstruction or amalgamation), or (c)
have a receiver appointed over the whole or any part of its assets, then, and in any of the foregoing events, the other Party shall
be entitled to terminate this Agreement immediately upon notice in writing to the insolvent Party.

 

		13.4	Effect of Termination. Expiration or termination of this Agreement, for whatever reason,
shall not affect any rights or obligations accrued by any Party prior to the effective date of termination. Any termination of
this Agreement in its entirety or for any country shall:

 

		(a)	Extinguish all rights of Company under this Agreement, including any rights to distribute,
sell or market the Product in the applicable countries in the Territory;

 

		(b)	Oblige Company, at its sole cost and expense, to promptly return to Misonix all applicable
data and materials transferred by Misonix to Company under this Agreement (as well as its copies, printouts or translations) and
any records and materials in Company’s possession or control containing Confidential Information of Misonix;

 

		(c)	Oblige Company to (i) provide Misonix all information related to any outstanding orders of
Product, and (ii) notify Misonix of any tenders (public procurements governed by any law in the Territory) that will require the
supply of the Product following termination of this Agreement; 

 

    
Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

     

    

 

		(d)	Oblige Company to prepare and submit to Misonix an inventory of its remaining stock of Product
within 10 business days of the date of termination of this Agreement. Following receipt of such inventory, Misonix may at its discretion
buy back all or part of the Product in the possession of Company at the landed cost for such Product supplied by Misonix and with
respect to units of Product manufactured by Company for the amounts received by Misonix from Company for such products;
provided that the Product continues to conform to all applicable specifications and warranties.
Misonix shall give notice to Company within 15 business days from its receipt of such inventory, indicating (i) whether it desires
to purchase any remaining stock of Product and (ii) how much stock of Product it will buy back from Company, if any. Company shall
have the right to sell the Product in inventory at the time of termination that are not repurchased by Misonix for a period of
6 (six) months following termination hereof; provided that such sale shall be subject
to the terms of this Agreement in effect immediately prior to the termination; 

 

		(e)	If the Agreement is terminated, oblige Company to pay any outstanding unpaid invoices already
submitted by Misonix and immediately on receipt of invoice pay any invoices in respect of Product supplied before termination but
for which an invoice is not submitted until after termination; 

 

		(f)	Oblige Company, within 30 days from the receipt of a request from Misonix, to transfer any
domain names registered by Company related to the Product in respect of the applicable countries; and,

 

		(g)	Oblige Company to assign to Misonix all right, title and interest in and to all MAAs and MAs.

 

		13.5	Hand Piece Sub-Assemblies. In the event of: (a) a change in control of Misonix, or (b) a
Misonix bankruptcy, Misonix (or its successor(s) as the case may be) shall, in its sole discretion, either (y) continue supplying
Company with Hand Piece sub-assemblies pursuant to this Agreement, or (z) transfer technology and know-how sufficient for Company
to manufacture its own Hand Piece sub-assemblies.

 

		13.6	Survival. The provisions in Sections 1, 3.7, 3.8-3.11, 4.1, 6.1, 6.3, 7.2, 8, 9.3, 11, 12,
13.4, 14, 15 and 16 shall survive the expiration or termination of this Agreement.

 

		13.7	No Damages from Termination. Without prejudice to the rights of the Parties to claim compensation
for any damages deriving from any breach, upon expiration or termination of this Agreement, no Party shall be liable to any other
for any damages (whether direct, consequential, or incidental and including expenditures, loss of profits, or prospective profits
of any kind) sustained or arising out of, or alleged to have been sustained or to have arisen out of, such termination. In particular
(but without limitation), Company shall have no claim against Misonix for compensation for loss of distribution rights, loss of
goodwill or similar loss.

 

14.          CONFIDENTIALITY
AND DISCLOSURE

 

		14.1	Confidentiality. Neither Party shall use or disclose any Confidential Information received
by it pursuant to this Agreement without the prior written consent of the disclosing Party, during the Term and for five additional
years following the expiration or termination of the Term.

 

		14.2	Disclosure. Nothing contained in this Section shall be construed to restrict the parties
from using such Confidential Information as is reasonably necessary to perform acts permitted by this Agreement (including the
registration, promotion, storage, distribution or sale of the Product) or from disclosing Confidential Information (i) to those
of the receiving Party’s employees or representatives who have a need to know such information (collectively, “Authorized
Recipients”) to perform such Party’s obligations hereunder so long as each Authorized Recipient is under a written
obligation of confidentiality no less protective than the terms hereof and (ii) to any physical or legal person, including any
Governmental Authority, as required (a) for regulatory, tax, securities or customs reasons, (b) by court or other government order,
or (c) for confidential audit purposes; provided, that the disclosing Party shall, in the event of disclosure under subsections
(ii)(a) or (ii)(b) above, provide the other Party with not less than 15 days’ notice prior to disclosure (except where the
disclosing party itself receives less than 15 days’ prior notice, in which case the disclosing Party shall immediately notify
the other Party), and the disclosing Party shall fully cooperate with the other Party to the extent permitted by law, so that the
other Party may make any objections and/or secure any protective provisions it deems reasonably necessary.

 

    
Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

     

    

 

15.          COMPLIANCE
WITH LAWS

 

		15.1	Compliance with Privacy Laws. As required by applicable laws and regulations, Company shall
secure all necessary consents and other rights in writing before sharing any protected health information. Company shall not transfer
any protected health information to Misonix. To the extent that this Agreement requires transfer of or reference to protected health
information, Company and Misonix shall negotiate in good faith a data privacy amendment to this Agreement before such transfer
or reference occurs.

 

		15.2	Compliance with Applicable Law. Company shall strictly comply with any and all applicable
laws and regulations with regard to importation, distribution and sale of the Company’s products in the Territory, including
without limitations all China’s importation laws and regulations, all applicable anti-bribery laws, including the Foreign
Corrupt Practices Act of the U.S. (“FCPA”) and the U.K. Bribery Act, as well as all related local restrictions.

 

		15.3	Anti-Bribery and Sales Ethics Compliance. Company, including for its employees and agents,
hereby represents, warrants, and covenants that:

 

15.3.1 Foreign Corrupt Practices
Act Compliance. In carrying out its responsibilities under the Agreement, Company, its owners, officers, director, employees,
and agents will comply strictly with FCPA and the United Kingdom Bribery Act of 2010 and all anti-corruption laws and regulations
of China and of any jurisdiction upon which Company is bound

 

15.3.2 Prohibited Payments.
Further, in carrying out its responsibilities under the Agreement, Company and its owners, officers, director, employees, or agents
have not and will not pay, offer, or promise to pay, or authorize the payment directly or indirectly, of any money, gift, or anything
of value to any government official for the purpose of influencing any act or decision of such official or of the government to
obtain or retain business, or direct business to any person (any such payment is a “Prohibited Payment”). A Prohibited
Payment does not include the payment of reasonable and bona fide expenditures, such as travel and lodging expenses, which are directly
related to the promotion, demonstration, or explanation of products or services, or the execution or performance of a contract
with a foreign government or agency, provided that such payments are permissible under the Chinese national and local law and customer
guidelines. All such payments shall be documented for audit purposes and such documentation shall be maintained indefinitely and
not discarded without the written consent of Misonix.

 

15.3.3 Gratuity Prohibition.
Sales and marketing activities involving health care professionals and entities, including surgeons, will not involve personal
gifts or gratuities or the direct or indirect funding of entertainment, sports or recreational events. All business-related meal
expenses must be in compliance with local law and custom, modest in value, and involve business and professional interactions,
activities and meetings.

 

15.3.4 Government Ownership.
Company is not and will not become owned wholly or in part by the government, any agency or instrumentality thereof, or any Government
Official during the term of this Agreement without prior written notice to the Misonix. No owner, partner, officer, director, or
employee of Company is or will become an official or employee of the government during the Term without the prior written notice
and approval of the Misonix.

 

15.3.5 Misonix Reliance on
Company’s Compliance with Chinese Law. Company recognizes that Misonix is not fully familiar with the laws, rules, orders,
regulations, policies, and customs of China and that Misonix has entered into this Agreement with material reliance on Company’s
representation and warranty that this Agreement and the relationship created between the Company and Misonix does not violate any
law, rule, or regulation of China, including laws regulating elections. Company further represents and warrants that neither the
receipt of fees under this Agreement nor performance of the services under this Agreement is in any respect a violation of the
laws, rules, orders, prohibitions, regulations, or policies of China.

 

    
Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

     

    

 

		15.4	Failure to Comply with Laws. In the event Misonix has reason to believe that non-compliance
activity, a violation of the law or otherwise a breach of any of the representations and warranties and other obligations of this
Agreement has occurred or may occur, Misonix may suspend any or all of its obligations under this Agreement until such time as
it has received confirmation to its satisfaction that no breach has occurred or will occur. Misonix shall not be liable to Company
for any claims, loses, or damages whatsoever related to its decision to suspend its obligations under this Section 15. In the event
of non-compliance with the requirements of this Section 15, including a violation of applicable regulatory or anti-bribery laws,
the Agreement shall be voidable ab initio in Misonix’s sole discretion without the requirement of any prior written
notice of cancellation. In addition to and without limiting its obligations under this Agreement, the Company shall indemnify and
hold Misonix harmless against any and all claims, losses, damages or costs of any kind (including reasonable fees and costs incurred
by Misonix in connection with any audit, internal review, investigation or government disclosures) related to such breach of any
warranty or representation of this Agreement. Company agrees to provide Misonix an annual certification as to FCPA compliance in
the form requested by Misonix.

 

		15.5	Audit. Misonix shall have the right to audit the Company in order to satisfy itself that
no breach related to this Section 15 has occurred. At Misonix’s option, Misonix may select an independent third party to
conduct an audit to certify to Misonix that no breach has occurred or will occur. The Company shall cooperate fully in any audit
conducted by or on behalf of the Misonix.

 

16.           MISCELLANEOUS

 

		16.1	Assignment. Misonix shall have the right to assign or transfer its rights and benefits under
this Agreement at its sole discretion to any successor to substantially all of its assets relating to the Product. Company shall
not assign, sublicense or transfer any right or obligation hereunder without the prior written consent of Misonix. The rights and
obligations of the Parties under this Agreement shall be binding upon and inure to the benefit of the successors and permitted
assigns of the Parties. Any purported assignment or sublicense not in accordance with this Agreement shall be null and void.

 

		16.2	Independent Contractors. The Parties to this Agreement are independent contractors and agree
that the relationship between the Parties shall not constitute a partnership, joint venture or agency. No Party shall have the
authority to make any statement, representations or commitments of any kind, or to take any action, which shall be binding on any
other Party, without the prior written consent of that other Party.

 

		16.3	Force Majeure. Neither Party shall be held liable or responsible, nor be deemed to be in
default or breach of this Agreement, for any delay or failure to fulfill or perform any provision of this Agreement (other than
any payment obligation) if such delay or failure arises directly or indirectly out of an act of nature, acts of the public enemy,
freight embargoes, strikes, plant shutdown, equipment failure, quarantine restrictions, unusually severe weather conditions, insurrection,
riot, labor disputes or shortages or other causes beyond the reasonable control of the Party responsible for the delay or failure
to perform; provided that the Party whose performance is delayed or prevented shall notify the other Party as soon as reasonably
possible after the occurrence of such event and shall continue to use good faith diligent efforts to mitigate, avoid or end such
delay or failure in performance as soon as practicable and that if such event continues for a period of three months or more, the
non-affected Party may terminate this Agreement with immediate effect by giving written notice to the affected Party. Nothing contained
in this Section 16.3 shall limit or restrict the right of any Party to handle or dispose of any strikes or labor disputes in its
absolute discretion.

 

		16.4	Severability. If any one or more of the provisions of this Agreement is held to be invalid,
illegal or unenforceable by any court of competent jurisdiction from which no appeal can be or is taken, the provision shall be
considered severed from this Agreement and shall not serve to invalidate any remaining provisions hereof. The Parties shall make
a good faith effort to replace any invalid or unenforceable provision with a valid and enforceable one such that the objectives
contemplated by the Parties when entering into this Agreement may be realized

 

    
Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

     

    

 

		16.5	Entire Agreement. This Agreement contains the entire understanding of the Parties with respect
to the subject matter hereof. Except in the case of fraud, all express or implied agreements and understandings, either oral or
written, made prior to the execution of this Agreement are superseded by this Agreement. Except as expressly provided elsewhere
in this Agreement, this Agreement may be amended, or any term hereof modified, only by a written instrument duly executed by both
Parties. The language of this Agreement is English.

 

		16.6	Publicity. Neither
                                         Party shall make any statement to the public regarding the execution or the subject matter
                                         of this Agreement without the prior written consent of the other Party except to the
                                         extent required by any applicable Governmental Authority and applicable Law, including
                                         disclosures required by any securities exchange regulation, as reasonably advised by
                                         such Party’s counsel.

 

		16.7	Waiver. Any delay or failure of a Party to enforce any provision of this Agreement shall
not constitute a waiver of such provision or of that Party’s right to thereafter enforce any and all provisions under this
Agreement.

 

		16.8	Notice. Any notices, approvals, or consents required or permitted to be given under this
Agreement shall be in writing, shall specifically refer to this Agreement and shall be deemed to have been sufficiently given for
all purposes if mailed by first class certified or registered mail, postage prepaid, internationally recognized express delivery
service or personally delivered. Unless otherwise specified in writing, the mailing addresses of the Parties shall be as described
below:

 

	
        For Misonix:

        Misonix, Inc.

        ATTN: Scott Ludecker

        Address: 1938 New Highway; Farmingdale,
NY 11735

        Tel: 631-927-9115

        Email: sludecker@misonix.com

         
	 

	
        For Company:

        Hunan Xing Hang Rui Kang Bio-technologies Co., Ltd. 

        ATTN: Li Quain 

        26/F., Times Tower, 391-407 Jaffe Road 

        Wan Chai, Hong Kong 

        Tel: +86 16273179999 

        Email: 1092279853@qq.com

         
	 

		16.9	Taxes.

 

		(a)	Payment of taxes. Each Party is solely responsible for determining
its own tax treatment of all items hereunder. A Party receiving a payment pursuant to this Agreement shall pay any and all taxes
levied on such payment. If applicable Laws require that taxes be deducted and withheld by the remitting Party from such a payment,
the remitting Party shall (i) deduct those taxes from the payment; (ii) timely pay the withheld taxes to the proper taxing authority;
and (iii) send proof of payment to the other Party within sixty (60) days upon request. Each Party shall furnish the other Party
with appropriate documents to secure application of the most favorable rate of withholding tax under applicable Laws. 

 

		(b)	Tax Residence Certificate. A Party entitled to receive a payment
pursuant to this Agreement shall provide the remitting Party appropriate certification from the relevant revenue authorities that
such receiving Party is a tax resident of that jurisdiction (a “Tax Residence Certificate”), if such receiving Party
wishes to claim the benefits of an income tax treaty to which that jurisdiction is a party. Upon the receipt thereof, any deduction
and withholding of taxes by the remitting Party shall be made at the appropriate treaty tax rate.

 

    
Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

     

    

 

		16.10	Interpretation. The paragraph and other headings contained in this Agreement are for reference
purposes only and shall not affect the meaning or interpretation of this Agreement. All references in this Agreement to a Section
or Schedule shall refer to a Section or Schedule in or to this Agreement, unless otherwise stated. Any reference to any Law shall
be deemed also to refer to all rules and regulations promulgated thereunder, unless the context requires otherwise. The word “including”
and similar words mean “including without limitation.” The words “herein,” “hereof” and “hereunder”
and other words of similar import refer to this Agreement as a whole and not to any particular Section or other subdivision. References
in this Agreement to “provisions of this Agreement” refer to the terms, conditions and promises contained in this Agreement
taken as a whole, including all Schedules attached hereto. All references to months, quarters or years/annual are references to
calendar months, calendar quarters, or calendar years, respectively, unless otherwise specified. References to the singular include
the plural. This Agreement will be construed without any presumption or other rule requiring construction against the Party drafting
the provision to be interpreted.

 

		16.11	Further Assurances. Each Party agrees to execute, acknowledge and deliver such further instruments,
and to do all such other acts, as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement.

 

		16.12	Third Party Rights. This Agreement does not create any right enforceable by any person who
is not a Party to it.

 

		16.13	Dispute Resolution and Applicable Law. This Agreement and any issues, disputes or claims
arising out of or in connection with it (whether contractual or non-contractual in nature such as claims in tort, from breach of
statute or regulation or otherwise) shall be governed by and construed in accordance with the laws of Switzerland excluding the
provisions of the Swiss International Private Law. The United Nations Convention on Contracts for International Sale of Goods (1980)
shall not govern this Agreement. For all disputes that cannot be resolved between the Parties, either Party shall have the right
to refer such unresolved dispute to the respective chief executive officers of both Parties by written notice in accordance with
Section 16.8, for attempted resolution by good faith negotiations within 30 days after such notice is received. In the event the
chief executive officers (or their designees) are not able to resolve such dispute within such 30 day period after receipt of written
notice, then all disputes between the Parties arising under, out of or relating to this Agreement or arising out of the circumstances
and relationships contemplated by this Agreement shall be exclusively resolved by arbitration in New York City, New York, USA in
accordance with the International Chamber of Commerce Rules of Arbitration, by one or three arbitrators appointed in accordance
thereof. The language to be used in the arbitral proceedings shall be English. The decision reached by such arbitrators in any
such proceeding shall be final and binding upon the parties thereto.

 

[Signature page follows]

 

    
Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

     

    

 

IN WITNESS WHEREOF, the Parties have caused
their duly authorized representatives to execute this Agreement as of the date first above written.

 

	Misonix, Inc.	 	Hunan Xing Hang Rui Kang Bio-technologies
    Co., Ltd. 
	 	 	 	 	 	 
	Signature:	/s/ S.G.
    Vizirgianakis	 	Signature:	/s/ Li
    Quan	 
	 	 	 			 
	Title: CEO	 	Title: CEO	 

  

    
Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

     

    

 

Schedule 1.16 – Product Specifications

 

[***]

 

    
Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

     

    

 

Schedule 11.2.8 – Product Warranty

 

WARRANTY

 

Limited Warranty. Manufacturer warrants
to end users who purchase the Product(s) from a Distributor or directly from Manufacturer, that the Product(s), at the time of
shipment will: (i) be free from defects in design, construction, material and workmanship, and (ii) comply with the product performance
and packaging specifications that accompany the shipment of the Product(s) by Manufacturer. Manufacturer warrants the Product(s)
for a time period of 12 months from shipment of the Product(s) to an end user or 18 months from the shipment to a Distributor,
whichever is shorter.1 This warranty is contingent upon
use of the Product(s) in accordance with Manufacturer’s instructions and in the application for which such Product(s) was
intended and does not cover Product(s) that were modified without Manufacturer’s prior written approval, that have expired,
or that were subjected by the customer to unusual physical, chemical or electrical stress. During the warranty period, Manufacturer
shall be responsible to repair or replace Product(s) solely at its discretion.

 

 

1
Distribution partners will be required to provide end user proof of purchase for warranty claims to ensure that the Product(s)
is still under warranty. Distributors will have a maximum of 12 additional months from shipment from Manufacturer to place a unit
with an end user.

 

    
Portions of this Exhibit, indicated by the mark “[***],” were omitted and have been filed separately with the Securities and Exchange Commission pursuant to the Registrant’s application requesting confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended.

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