Document:

EX-4.20

 Exhibit 4.20 
  

 
 June 27, 2013 

Dr. Augustine Cheung 
 Founder, CEO & President

 Medifocus, Inc 
 The Exchange Tower, 

Suite 1800, 
 Toronto, ON M5X1E3 

Dear Mr. Cheung: 
 We are pleased that Medifocus,
Inc(“Medifocus” or the “Company”) has decided to retain Maxim Group LLC (“Maxim”) to provide general financial advisory and investment banking services to the Company as set forth herein. This
letter agreement (“Agreement”) will confirm Maxim’s acceptance of such retention and set forth the terms of our engagement. 
 1.
Retention. The Company hereby retains Maxim as its financial advisor and investment banker to provide general financial advisory and investment banking services, and Maxim accepts such retention on the terms and conditions set forth in this
Agreement. In connection with this Agreement, Maxim may provide certain or all of the following services (collectively referred to as the “Advisory Services”): 

 

	 	(a)	provide a valuation analysis of the Company including:

  

	 	I.	Comparable company analysis; 

  

	 	II.	Precedent transaction analysis; 

  

	 	(b)	assist the Company in indentifying, researching, structuring and negotiating potential strategic partnerships and licensing agreements with companies across the globe with specific targets in India, China, Japan and
Europe; 

  

	 	(c)	to the extent practicable, assist management of the Company with the preparation of the Company’s marketing materials and investor presentations; assist with presentations to Maxim’s sales force; coordinate
non-deal road shows for the Company with investors and assist the Company in broadening its shareholder; 

  

	 	(d)	advise the Company on matters relating to its capitalization including a reverse split, up-listing in US national exchange and potential concurrent capital raise; 

 

	 	(e)	work closely with the Company’s management team to develop a set of long and short-term goals with special focus on enhancing corporate and shareholder value. This will include assisting the Company in determining
key business actions intended to help enhance shareholder value including the timing and structure of acquisitions and capital raises, review of financing requirements and capital structure and exposure to the investment community;

  

	 	(f)	advise the Company on potential financing alternatives and merger and acquisition criteria and activity, including facilitation and negotiation of any financial or structural aspects of such alternatives; and

  

	 	(g)	provide such other financial advisory and investment banking services upon which the parties may mutually agree. 

Members FINRA & SIPC 
 405
Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 
 New
York, NY * Long Island, NY * Redbank, NJ 

 Medifocus, Inc. 

June 2013 
  

 It is expressly understood and agreed that Maxim shall be required to perform only such tasks
as may be necessary or desirable in connection with the rendering of its services hereunder and therefore may not perform all of the tasks enumerated above during the term of this Agreement. Moreover, it is further understood that Maxim need not
perform each of the above-referenced tasks in order to receive the fees described in Section 3. It is further understood that Maxim’s tasks may not be limited to those enumerated in this paragraph. 

2. Information. In connection with Maxim’s activities hereunder, the Company will cooperate with Maxim and furnish Maxim upon request with all
information regarding the business, operations, properties, financial condition, management and prospects of the Company (all such information so furnished being the “Information”) which Maxim deems appropriate and will provide
Maxim with access to the Company’s officers, directors, employees, independent accountants and legal counsel. The Company represents and warrants to Maxim that all Information made available to Maxim hereunder will be complete and correct in
all material respects and will not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein not misleading in light of the circumstances under which such statements are or
will be made. The Company further represents and warrants that any projections and other forward-looking information provided by it to Maxim will have been prepared in good faith and will be based upon assumptions which, in light of the
circumstances under which they are made, are reasonable. The Company recognizes and confirms that Maxim: (i) will use and rely primarily on the Information and on information available from generally recognized public sources in performing the
services contemplated by this Agreement without having independently verified the same; (ii) does not assume responsibility for the accuracy or completeness of the Information and such other information; and (iii) will not make an
appraisal of any assets of the Company. Any advice rendered by Maxim pursuant to this Agreement may not be disclosed publicly without Maxim’s prior written consent. Maxim hereby acknowledges that certain of the Information received by Maxim may
be confidential and/or proprietary, including Information with respect to the Company’s technologies, products, business plans, marketing, and other Information which must be maintained by Maxim as confidential. Maxim agrees that it will not
disclose such confidential and/or proprietary Information to any other companies in the industry in which the Company is involved. 
 3.
Compensation. As consideration for Maxim’s services pursuant to this Agreement, Maxim shall be entitled to receive, and the Company agrees to pay Maxim, the following compensation: 

 

	 	(a)	The Company shall pay to Maxim a non-refundable monthly fee of $10,000 (USD) for the term of this Agreement; however in no event shall the Company pay fewer than six (6) monthly fee payments to Maxim. The monthly
fee payments are payable at the beginning of each month upon execution of this Agreement until the termination of the Agreement (subject to the minimum six month time period detailed in the preceding sentence). The monthly fee payments shall be
payable by wire or other immediately available funds. The fees appearing in Exhibit B (hereto, the “Fee Schedule”) shall be earned by and paid to Maxim by the Company in connection with any Financings or Transactions (as such
terms are defined hereafter) undertaken by the Company, the terms of which will be will be mutually agreed upon under separate advisory, placement agency and/or underwriting agreements. The fees enumerated in Exhibit B are separate and apart from
the monthly fee payments enumerated earlier in this paragraph. 

  
 Members FINRA &
SIPC 
 405 Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Redbank, NJ 

 Medifocus, Inc. 

June 2013 
  

	 	(b)	The Company will issue to Maxim or its designees 4 million warrants at an exercise price of $0.20 per share with an expiration date of five (5) years commencing from the execution date of this Agreement. The
shares underlying the warrants will have unlimited piggyback registration rights and the same rights afforded other holders of the Company’s. 

  

	 	(c)	The Company and Maxim acknowledge and agree that, in the course of performing services hereunder, Maxim may communicate with (as the Company’s advisor) or introduce the Company to third parties who may be
interested in providing financing to the Company (a “Financing”) or in entering into a transaction with the Company, including, without limitation, a merger, acquisition or sale of stock or assets (in which the Company may be the
acquiring or the acquired entity), joint venture, strategic alliance or other similar transaction (any such transaction, a “Transaction”). The Company agrees that if during the term of this Agreement or within twelve
(12) months from the effective date of the termination of this Agreement either the Company or any party to whom the Company was introduced by Maxim or who was contacted by Maxim on behalf of the Company in connection with its services for the
Company hereunder proposes a Financing or any Transaction involving the Company, then, if any such Financing or Transaction is consummated, the Company shall pay to Maxim fees in accordance with the Fee Schedule. Such fees shall be payable to Maxim
in cash at the closing or closings of the Financing or Transaction to which it relates. 

 4. Expenses. In addition to payment to Maxim
of the compensation set forth in Section 3 hereof, the Company shall promptly upon request from time to time reimburse Maxim for all reasonable expenses (including, without limitation, fees and disbursements of counsel and all travel and other
out-of-pocket expenses) incurred by Maxim in connection with its engagement hereunder. Maxim will provide the Company an invoice and copies of receipts pursuant to its expenses and such expenses shall not exceed $2,500 without prior authorization of
the Company; provided that the foregoing limitation and consent shall not apply to legal fees. 
 5. Indemnification. The Company agrees to indemnify
Maxim in accordance with the indemnification and other provisions attached to this Agreement as Exhibit A (the “Indemnification Provisions”), which provisions are incorporated herein by reference and shall survive the
termination or expiration of this Agreement. 
 6. Future Rights. As additional consideration for its services hereunder and as an inducement to
cause Maxim to enter into this Agreement, if at any time during the term of this Agreement or within twelve (12) months from the effective date of the termination of this Agreement, the Company proposes to effect a public offering of its
securities on a US exchange, private placement of securities or other Financing, the Company shall offer to retain Maxim as lead book running manager of such offering, or as its exclusive agent in connection with such Financing or other matter, upon
such terms as the parties may mutually agree, such terms to be set forth in a separate engagement letter or other agreement between the parties. Such offer shall be made in writing in order to be effective. The Company shall not offer to retain any
other investment banking firm in connection with any such offering or Financing, on terms more favorable than those discussed with Maxim without offering to retain Maxim on such more favorable terms. Maxim shall notify the Company within 10 days of
its receipt of the written offer contemplated above as to whether or not it agrees to accept such retention. If Maxim should decline such retention, the Company shall have no further obligations to Maxim, except as specifically provided for herein.

 7. Other Activities. The Company acknowledges that Maxim has been, and may in the future be, engaged to provide services as an underwriter,
placement agent, finder, advisor and investment banker to 

  
 Members FINRA &
SIPC 
 405 Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Redbank, NJ 

 Medifocus, Inc. 

June 2013 
  

 
other companies in the industry in which the Company is involved. Subject to the confidentiality provisions of Maxim contained in Section 2 hereof, the Company acknowledges and agrees that
nothing contained in this Agreement shall limit or restrict the right of Maxim or of any member, manager, officer, employee, agent or representative of Maxim, to be a member, manager, partner, officer, director, employee, agent or representative of,
investor in, or to engage in, any other business, whether or not of a similar nature to the Company’s business, nor to limit or restrict the right of Maxim to render services of any kind to any other corporation, firm, individual or
association. Maxim may, but shall not be required to, present opportunities to the Company. 
 8. Term and Termination; Survival of Provisions.
Either Maxim or the Company may terminate this Agreement at any time upon 30 days’ prior written notice to the other party after the six (6) month anniversary of this Agreement. In the event of such termination, the Company shall pay and
deliver to Maxim: (i) all compensation earned through the date of such termination (“Termination Date”) pursuant to any provision of Section 3 hereof, and (ii) all compensation which may be earned by Maxim after the
Termination Date pursuant to Section 3 hereof, and shall reimburse Maxim for all expenses incurred by Maxim in connection with its services hereunder pursuant to Section 4 hereof. All such fees and reimbursements due to Maxim pursuant to
the immediately preceding sentence shall be paid to Maxim on or before the Termination Date (in the event such fees and reimbursements are earned or owed as of the Termination Date) or upon the closing of a Financing or Transaction or any applicable
portion thereof (in the event such fees are due pursuant to the terms of Section 3 hereof). Notwithstanding anything expressed or implied herein to the contrary: (i) any other agreement entered into between Maxim and the Company may only
be terminated in accordance with the terms thereof, notwithstanding an actual or purported termination of this Agreement, and (ii) the terms and provisions of Sections 3, 4, 5 (including, but not limited to, the Indemnification Provisions
attached to this Agreement and incorporated herein by reference), 6, 8, 9, 10, 11, 15 and 17shall survive the termination of this Agreement. 
 9.
Notices. All notices will be in writing and will be effective when delivered in person or sent via facsimile and confirmed by letter, to the party to whom it is addressed at the following addresses or such other address as such party
may advise the other in writing: 
  

			
	To the Company:	  	Medifocus, Inc
		  	The Exchange Tower,
		  	Suite 1800,
		  	Toronto, ON M5X1E3
		  	Attention: Dr. Augustine Cheung
		  	Telephone: (905) 319-7070
		  	Fax No: (905) 517-6060
		
	To Maxim:	  	James Siegel, Esq.
		  	Maxim Group LLC
		  	405 Lexington Avenue
		  	New York, NY 10174
		  	Attention: James Siegel
		  	Telephone: (212) 895-3508
		  	Facsimile: (212) 895-3888
		
		  	Mr. Clifford Teller
		  	Maxim Group LLC
		  	405 Lexington Avenue
		  	New York, NY 10174
		  	Attention: Clifford Teller

  
 Members FINRA &
SIPC 
 405 Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Redbank, NJ 

 Medifocus, Inc. 

June 2013 
  

 10. Governing Law; Jurisdiction; Waiver of Jury Trial. This Agreement shall be enforced, governed by
and construed in accordance with the laws of New York without regard to principles of conflict of laws. Any controversy between the parties to this Agreement, or out of shall be resolved by arbitration before the Financial Industry Regulatory
Authority (“FINRA”) in New York City. The following arbitration agreement should be read in conjunction with these disclosures: 
  

	(a)	ARBITRATION IS FINAL AND BINDING ON THE PARTIES; 

  

	(b)	THE PARTIES ARE WAIVING THEIR RIGHT TO SEEK REMEDIES IN COURT, INCLUDING THE RIGHT TO JURY TRIAL; 

  

	(c)	PRE-ARBITRATION DISCOVERY IS GENERALLY MORE LIMITED THAN AND DIFFERENT FROM COURT PROCEEDING; 

  

	(d)	THE ARBITRATORS’ AWARD IS NOT REQUIRED TO INCLUDE FACTUAL FINDING OR LEGAL REASONING AND ANY PARTY’S RIGHT TO APPEAL OR TO SEEK MODIFICATION OF RULINGS BY THE ARBITRATORS IS STRICTLY LIMITED; AND

 ARBITRATION AGREEMENT ANY AND ALL CONTROVERSIES, DISPUTES OR CLAIMS BETWEEN THE UNDERSIGNED AND YOU OR YOUR AGENTS, REPRESENTATIVES,
EMPLOYEES, DIRECTORS, OFFICERS OR CONTROL PERSONS, ARISING OUT OF, IN CONNECTION WITH, FROM OR WITH RESPECT TO (a) ANY PROVISIONS OF OR THE VALIDITY OF THIS AGREEMENT OR ANY RELATED AGREEMENTS, (b) THE RELATIONSHIP OF THE PARTIES HERETO,
OR (c) ANY CONTROVERSY ARISING OUT OF YOUR BUSINESS SHALL BE CONDUCTED PURSUANT TO THE CODE OF ARBITRATION PROCEDURE OF THE AAA. ARBITRATION MUST BE COMMENCED BY SERVICE OF A WRITTEN DEMAND FOR ARBITRATION OR A WRITTEN NOTICE OF INTENTION TO
ARBITRATE. IF YOU ARE A PARTY TO SUCH ARBITRATION, TO THE EXTENT PERMITTED BY THE RULES OF THE APPLICABLE ARBITRATION TRIBUNAL, THE ARBITRATION SHALL BE CONDUCTED IN NEW YORK, NEW YORK. THE DECISION AND AWARD OF THE ARBITRATORS(S) SHALL BE
CONCLUSIVE AND BINDING UPON ALL PARTIES, AND ANY JUDGMENT UPON ANY AWARD RENDERED MAY BE ENTERED IN A COURT HAVING JURISDICTION THEREOF, AND NEITHER PARTY SHALL OPPOSE SUCH ENTRY. 

11. Amendments. This Agreement may not be modified or amended except in a writing duly executed by the parties hereto. 

12. Headings. The section headings in this Agreement have been inserted as a matter of reference and are not part of this Agreement. 

13. Successors and Assigns. The benefits of this Agreement shall inure to the parties hereto, their respective successors and assigns and to the
indemnified parties hereunder and their respective successors and assigns, and the obligations and liabilities assumed in this Agreement shall be binding upon the parties hereto and their respective successors and assigns. Notwithstanding anything
contained herein to the contrary, neither Maxim nor the Company shall assign any of its obligations hereunder without the prior written consent of the other party. 

  
 Members FINRA &
SIPC 
 405 Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Redbank, NJ 

 Medifocus, Inc. 

June 2013 
  

 14. No Third Party Beneficiaries. This Agreement does not create, and shall not be construed as
creating, any rights enforceable by any person or entity not a party hereto, except those entitled to the benefits of the Indemnification Provisions. Without limiting the foregoing, the Company acknowledges and agrees that Maxim is not being engaged
as, and shall not be deemed to be, an agent or fiduciary of the Company’s stockholders or creditors or any other person by virtue of this Agreement or the retention of Maxim hereunder, all of which are hereby expressly waived. 

15. Waiver. Any waiver or any breach of any of the terms or conditions of this Agreement shall not operate as a waiver of any other breach of such
terms or conditions or of any other term or condition, nor shall any failure to insist upon strict performance or to enforce any provision hereof on any one occasion operate as a waiver of such provision or of any other provision hereof or a waiver
of the right to insist upon strict performance or to enforce such provision or any other provision on any subsequent occasion. Any waiver must be in writing. 

16. Counterparts. This Agreement may be executed in any number of counterparts and by facsimile transmission, each of which shall be deemed to be an
original instrument, but all of which taken together shall constitute one and the same agreement. Facsimile signatures shall be deemed to be original signatures for all purposes. 

17. Disclaimers. Maxim and the Company further agree that neither Maxim nor any of its affiliates or any of its/their respective officers, directors,
controlling persons (within the meaning of Section 15 of the Act or Section 20 of the Exchange Act of 1934), employees or agents shall have any liability to the Company, its security holders or creditors, or any person asserting claims on
behalf of or in the right of the Company (whether direct or indirect, in contract, tort, for an act of negligence or otherwise) for any losses, fees, damages, liabilities, costs, expenses or equitable relief arising out of or relating to this
Agreement or the Advisory Services rendered herein, except for losses, fees, damages, liabilities, costs or expenses that arise out of or are based on any action of or failure to act by Maxim and that are finally and fully judicially determined to
have resulted solely from the gross negligence or willful misconduct of Maxim. 

  
 Members FINRA &
SIPC 
 405 Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Redbank, NJ 

 Medifocus, Inc. 

June 2013 
  

 If the terms of our engagement as set forth in this letter are satisfactory to you, please
confirm by signing and returning one copy of this letter, together with a check or wire representing the initial monthly payment in connection with the Agreement. 

 

					
	Very truly yours,
	
	MAXIM GROUP LLC
			
		 	By:	 	/S/ Karl Brenza
		 	Karl Brenza
		 	Senior Managing Director, Investment Banking
			
		 	By:	 	/S/ Clifford A. Teller
		 	Clifford A. Teller
		 	Executive Managing Director, Investment Banking

 Agreed to and accepted this 27th day of June, 2013 

 

			
	Medifocus, Inc.
	
	/S/ Augustine Cheung
	Name:	 	Dr. Augustine Cheung
	Title:	 	Founder, CEO & President

  
 Members FINRA &
SIPC 
 405 Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Redbank, NJ 

 Medifocus, Inc. 

June 2013 
  

 Exhibit A 

INDEMNIFICATION PROVISIONS 

Capitalized terms used in this Exhibit shall have the meanings ascribed to such terms in the Agreement to which this Exhibit is attached. 

The Company agrees to indemnify and hold harmless Maxim and each of the other Indemnified Parties (as hereinafter defined) from and against
any and all losses, claims, damages, obligations, penalties, judgments, awards, liabilities, costs, expenses and disbursements, and any and all actions, suits, proceedings and investigations in respect thereof and any and all legal and other costs,
expenses and disbursements in giving testimony or furnishing documents in response to a subpoena or otherwise (including, without limitation, the costs, expenses and disbursements, as and when incurred, of investigating, preparing, pursing or
defending any such action, suit, proceeding or investigation (whether or not in connection with litigation in which any Indemnified Party is a party)) (collectively, “Losses”), directly or indirectly, caused by, relating to, based
upon, arising out of, or in connection with, Maxim’s acting for the Company, including, without limitation, any act or omission by Maxim in connection with its acceptance of or the performance or non-performance of its obligations under the
Agreement between the Company and Maxim to which these indemnification provisions are attached and form a part (the “Agreement”), any breach by the Company of any representation, warranty, covenant or agreement contained in the
Agreement (or in any instrument, document or agreement relating thereto, including any Agency Agreement), or the enforcement by Maxim of its rights under the Agreement or these indemnification provisions, except to the extent that any such Losses
are found in a final judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from the gross negligence or willful misconduct of the Indemnified Party seeking indemnification hereunder.
The Company also agrees that no Indemnified Party shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company for or in connection with the engagement of Maxim by the Company or for any other reason, except
to the extent that any such liability is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) to have resulted primarily and directly from such Indemnified Party’s gross negligence or willful
misconduct. 
 These Indemnification Provisions shall extend to the following persons (collectively, the “Indemnified
Parties”): Maxim, its present and former affiliated entities, managers, members, officers, employees, legal counsel, agents and controlling persons (within the meaning of the federal securities laws), and the officers, directors, partners,
stockholders, members, managers, employees, legal counsel, agents and controlling persons of any of them. These indemnification provisions shall be in addition to any liability which the Company may otherwise have to any Indemnified Party. 

If any action, suit, proceeding or investigation is commenced, as to which an Indemnified Party proposes to demand indemnification, it shall
notify the Company with reasonable promptness; provided, however, that any failure by an Indemnified Party to notify the Company shall not relieve the Company from its obligations hereunder. An Indemnified Party shall have the right to
retain counsel of its own choice to represent it, and the fees, expenses and disbursements of such counsel shall be borne by the Company. Any such counsel shall, to the extent consistent with its professional responsibilities, cooperate with the
Company and any counsel designated by the Company. The Company shall be liable for any settlement of any claim against any Indemnified Party made with the Company’s written consent. The Company shall not, without the prior written consent of
Maxim, settle or compromise any claim, or permit a default or consent to the entry of any judgment in respect thereof, unless such settlement, compromise or consent (i) includes, as an unconditional term thereof, the giving by the claimant to
all of the Indemnified Parties of an unconditional release from all liability in respect of such claim, and (ii) does not contain any factual or legal admission by or with respect to an Indemnified Party or an adverse statement with respect to
the character, professionalism, expertise or reputation of any Indemnified Party or any action or inaction of any Indemnified Party. 

  
 Members FINRA &
SIPC 
 405 Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Redbank, NJ 

 Medifocus, Inc. 

June 2013 
  

 In order to provide for just and equitable contribution, if a claim for indemnification
pursuant to these indemnification provisions is made but it is found in a final judgment by a court of competent jurisdiction (not subject to further appeal) that such indemnification may not be enforced in such case, even though the express
provisions hereof provide for indemnification in such case, then the Company shall contribute to the Losses to which any Indemnified Party may be subject (i) in accordance with the relative benefits received by the Company and its stockholders,
subsidiaries and affiliates, on the one hand, and the Indemnified Party, on the other hand, and (ii) if (and only if) the allocation provided in clause (i) of this sentence is not permitted by applicable law, in such proportion as to
reflect not only the relative benefits, but also the relative fault of the Company, on the one hand, and the Indemnified Party, on the other hand, in connection with the statements, acts or omissions which resulted in such Losses as well as any
relevant equitable considerations. No person found liable for a fraudulent misrepresentation shall be entitled to contribution from any person who is not also found liable for fraudulent misrepresentation. The relative benefits received (or
anticipated to be received) by the Company and it stockholders, subsidiaries and affiliates shall be deemed to be equal to the aggregate consideration payable or receivable by such parties in connection with the transaction or transactions to which
the Agreement relates relative to the amount of fees actually received by Maxim in connection with such transaction or transactions. Notwithstanding the foregoing, in no event shall the amount contributed by all Indemnified Parties exceed the amount
of fees previously received by Maxim pursuant to the Agreement. 
 Neither termination nor completion of the Agreement shall affect these
Indemnification Provisions which shall remain operative and in full force and effect. The Indemnification Provisions shall be binding upon the Company and its successors and assigns and shall inure to the benefit of the Indemnified Parties and their
respective successors, assigns, heirs and personal representatives. 

  
 Members FINRA &
SIPC 
 405 Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Redbank, NJ 

 Medifocus, Inc. 

June 2013 
  

 Exhibit B 

FEE SCHEDULE 
 Capitalized terms used in
this Exhibit shall have the meanings ascribed to such terms in the Agreement to which this Exhibit is attached. 
  

	 	1.	For any Financing, the Company shall: 

  

	 	(i)	pay Maxim a cash fee of 8% of the amount of capital raised, invested or committed; and 

  

	 	(ii)	pay Maxim a cash fee for unallocated expenses of 1% of the amount of capital raised, invested or committed; and 

  

	 	(iii)	deliver a warrant to Maxim (the “Agent Warrant”) to purchase shares of the Company’s common stock (the “Common Stock”) equal to nine percent (9%) of the number of shares of
Common Stock underlying the securities issued in the Financing. Such Agent Warrant will be issued at each Closing and shall provide, among other things, that the Agent Warrant shall (i) be exercisable at an exercise price of 110% to the price
of the securities (or the exercise price of the securities) issued to the investors in the Financing, (ii) expire five (5) years from the date of issuance, (iii) contain standard anti-dilution protection and such other anti-dilution
protection provided to the investors in the Financing, (iv) include customary registration rights, including the registration rights provided to the investors, (v) contain provisions for cashless exercise and (vi) include such other
terms as are normal and customary for warrants of this type. 

  

	 	2.	Transaction Fees: 

 The Transaction Fees shall be payable to Maxim in cash at the
closing or closings of the Transaction to which it relates and shall be equal to 3% of Transaction consideration and defined below. The amount of consideration paid in a Transaction shall include, for purposes of calculating such fee, all forms of
consideration paid or received, directly or indirectly, by the Company and/or its stockholders in such Transaction, including, without limitation, cash, securities, notes or other evidences of indebtedness, assumption of liabilities (whether by
operation of law or otherwise), or any combination thereof. If all or portion of the consideration paid in the Transaction is other than cash or securities, then the value of such non-cash consideration shall be the fair market value thereof on the
date the Transaction is consummated as mutually agreed upon in good faith by the Company and Maxim. If such non-cash consideration consists of common stock, options, warrants or rights for which a public trading market existed prior to the
consummation for the Transaction, then the value of such securities shall be determined based upon the closing or last sales price thereof on the date of the consummation of the Transaction. If such non-cash consideration consists of newly-issued,
publicly-traded common stock, options, warrants or rights for which no public trading market existed prior to the consummation of the Transaction, then the value thereof shall be the average of the closing prices for the 20 trading days subsequent
to the fifth trading day after the consummation of the Transaction. In such event, the fee payable to Maxim pursuant to this Section 3 shall be paid on the 30th trading day subsequent to
consummation of the Transaction. If no public market exists for the common stock, options, warrants or other rights issued in the Transaction, then the value thereof shall be as mutually agreed upon in good faith by the Company and Maxim. If the
non-cash consideration paid in the Transaction consists of preferred stock or debt securities (regardless of whether a public trading market existed for such preferred stock or debt securities prior to consummation of the Transaction or exists
thereafter), the value thereof shall be the maximum liquidation value (without regard to 

  
 Members FINRA &
SIPC 
 405 Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Redbank, NJ 

 Medifocus, Inc. 

June 2013 
  

 
accrued dividends) of the preferred stock or the principal amount of the debt securities, as the case may be. Any amounts payable by a purchaser to the Company, any stockholder of the Company or
an affiliate of either the Company or any stockholder of the Company in connection with a non-competition, employment, consulting, licensing, supply or other agreement (or payable by the Company if the Company is the acquiring entity) shall be
deemed to be part of the consideration paid in the Transaction. If all or a portion of the consideration payable in connection with the Transaction includes contingent future payments, then the Company shall pay to Maxim an additional cash fee,
determined in accordance with this Section 3, as, when and if such contingency payments are received. However, in the event of an installment purchase at a fixed price and fixed time schedule, the Company agrees to pay Maxim, upon consummation
of such Transaction, an additional cash fee, determined in accordance with this Section 3 based upon the present value of such installment payments using a discount rate of 10%. If with respect to any non-cash consideration the Company and
Maxim are unable to agree on the fair market value thereof, then such value shall be determined by submission of the question to a reputable appraisal firm with experience valuing property of the nature of the subject consideration acceptable to the
Company and Maxim (the fees and expenses of whom shall be borne equally by the Company and Maxim). 

  
 Members FINRA &
SIPC 
 405 Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 

New York, NY * Long Island, NY * Redbank, NJEX-4.21

 Exhibit 4.21 
  

 
 June 27, 2013 

Dr. Augustine Cheung 
 Founder, CEO & President

 Medifocus, Inc 
 The Exchange Tower, 

Suite 1800, 
 Toronto, ON M5X1E3 

 

	 	Re:	Follow-on Offering 

 Dear Mr. Cheung: 

The purpose of this engagement letter is to outline our agreement in principle pursuant to which Maxim Group LLC (“Maxim”)
will act as the lead managing underwriter and book runner in connection with the proposed registered follow-on offering (collectively referred herein as the “Offering”) of common stock (collectively referred herein as the
“Securities”) of Medifocus, Inc. (collectively with its subsidiaries the “Company”), on a “firm commitment” basis.1 

This engagement letter states certain conditions and assumptions upon which the Offering is premised. However, except as expressly provided
for herein, this engagement letter is not intended to be a binding legal document, with the exception of those specific sections of this engagement letter that are agreed to be binding. All references in this engagement letter to dollars or $ shall
mean United States dollars. 
 The terms of our agreement in principle are as follows: 

1. The Company hereby engages Maxim, for the period beginning on the date hereof and ending on August 31, 2014 (the “Engagement
Period”), to act as the Company’s exclusive financial advisor, lead managing underwriter and book runner and investment banker in connection with the proposed Offering or any other financing. During the Engagement Period or until the
consummation of the Offering, and as long as Maxim is proceeding in good faith with preparations for the Offering, the Company agrees not to solicit, negotiate with or enter into any agreement with any other source of financing (whether equity,
debt, convertible or otherwise), any underwriter, potential underwriter, placement agent, financial advisor or any other person or entity in connection with an offering of the Company’s securities or any other financing by the Company without
the express written consent of Maxim. 
 2. The Offering shall consist of the sale of up to $20.0 million worth of Securities being offered
by the Company (the “Primary Offering”). Maxim will act as lead managing underwriter and book runner of the Offering of a syndicate, subject to, among other things, completion of Maxim’s due diligence examination of the Company
and its affiliates and the execution of a definitive underwriting agreement between the Company and Maxim in connection with the Offering (the “Underwriting Agreement”) and other customary documentation. 

 

	1 	It is understood and agreed that during the Engagement Period, the Company and Maxim may mutually determine that instead of proceeding with a “firm commitment offering”, that the proposed Offering will be
conducted on a “best efforts” basis. In such an event, the terms and conditions set forth herein (including but not limited to Maxim’s exclusivity enumerated in Paragraph 1(a)), shall still apply. 

Members FINRA & SIPC 
 405
Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 

			
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 3. The actual size of
the Offering, the precise number of Securities to be offered by the Company, and the offering price per Securities shall be the subject of continuing negotiations between the Company and Maxim and will depend upon the capitalization of the Company
(at the time of the Offering) being acceptable to Maxim, general market and economic conditions, a review and finalization of audited financial statements and formal financial projections of the Company, as well as other factors which Maxim deems
relevant in its discretion. Maxim may: (i) with the Company’s approval (not to be unreasonably withheld, conditioned or delayed), create a underwriting syndicate for the Offering comprised of broker-dealers who are members of the Financial
Industry Regulatory Authority (“FINRA”), (ii) rely on soliciting dealers who are FINRA members to participate in placing a portion of the Offering and/or (iii) offer Securities to such dealers at less than the public
Offering price. 
 4. The Underwriting Agreement will provide that the Company will grant to Maxim an option, exercisable within 45 days
after the closing of the Offering (the “Closing”), to acquire up to an additional 15.0% of the total number of Securities to be offered by the Company, solely for the purpose of covering over-allotments (the “Over-allotment
Securities”). 
 5. An underwriting discount or spread of nine percent (9.0%) of the public offering price shall be provided
to Maxim. Upon the execution of this engagement letter, the Company shall deliver to Maxim, an amount of $15,000 (by check or wire transfer of immediately available funds) as an advance to be applied towards such underwriting discount (the
“Initial Advance”). An additional $45,000 (collectively, with the Initial Advance, the “Advance”) which will be paid to Maxim (by check or wire transfer of immediately available funds) concurrently with the filing
of the Registration Statement (referred to herein in section 6) with the Securities and Exchange Commission and shall be applied towards such underwriting discount. 

6. The Company shall, as soon as practicable following the date hereof, prepare and file with the Securities and Exchange Commission (the
“Commission”) and the appropriate state securities authorities, a Registration Statement on Form S-1 /F-1 or relevant filing form (the “Registration Statement”) under the Securities Act of 1933, as amended (the
“Act”), and a prospectus included therein (the “Prospectus”) covering the Securities to be sold in the Offering, the Over-allotment Securities and the Securities underlying the Underwriter’s Warrants (as
defined below). The Registration Statement (including the Prospectus therein), and all amendments and supplements thereto, will be in form satisfactory to Maxim and counsel to Maxim and will contain such interim and other financial statements and
schedules as may be required by the Act and rules and regulations of the Commission thereunder. Maxim and its counsel shall be given the opportunity to make such review and investigation in connection with the Registration Statement and the Company
as they deem desirable. Maxim and the Company shall mutually agree on the use of proceeds of the Offering, which shall be described in detail within the Prospectus, it being further understood and agreed that, except as may expressly approved by
Maxim, no proceeds from the Offering will be used to pay outstanding loans owed by the Company to any Company officers, directors or stockholders. 

7. The Registration Statement filing will include as an exhibit a proposed form of Underwriting Agreement. The final Underwriting Agreement
will be in form satisfactory to the Company and Maxim and will include indemnification provisions and other terms and conditions customarily found in underwriting agreements for follow-on public offerings. Without limiting the generality of the
foregoing, the Offering Agreement shall contain customary representations and warranties of the Company and shall further provide that: (i) the Company, the Company’s directors and officers and any other holder(s) of 1.0% or more of the
outstanding Securities as of the effective date of the Registration Statement (and all holders of securities exercisable for or convertible into Securities) shall enter into customary “lock-up” agreements in favor of Maxim pursuant to
which such persons and entities shall agree, for a period of 6 months after the 

  
 Members FINRA &
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Offering is completed, that they shall neither offer, issue, sell, contract to sell, encumber, grant any option for the sale of or otherwise dispose of any securities of the Company without
Maxim’s prior written consent, including the issuance of Securities upon the exercise of currently outstanding options approved by Maxim and (ii) upon the Closing, for a period of eighteen (18) months from the Closing, the Company, or
any successor to or any subsidiary of the Company, will grant Maxim the right of first refusal under the terms set forth in section 14 of this engagement letter. 

8. Concurrently with or as soon as practicable after the filing of the Registration Statement with the Commission, the Company shall make all
necessary state “blue sky” securities law filings with respect to the Securities to be sold in the Offering (including the Over-allotment Securities). The Company and Maxim will cooperate in obtaining the necessary approvals and
qualifications in such states as Maxim deems necessary and/or desirable. 
 9. The Company shall be responsible for and pay all expenses
relating to the Offering, including, without limitation, all filing fees and communication expenses relating to the registration of the Securities to be sold in the Offering (including the Over-allotment Securities) with the Commission and the
filing of the offering materials with FINRA; if applicable all fees and expenses relating to the listing of such Securities on the OTCQX, Nasdaq market system, NYSE or NYSE MKT as the Company and Maxim together determine; all fees, upon the
execution of the engagement letter, the Company at its own expense will conduct background checks, by a background search firm acceptable to Maxim, for the Company’s senior management; all fees, expenses and disbursements relating to the
registration or qualification of such Securities : (i) if the Offering requires “blue sky” registration, the Company shall issue an initial payment of $10,000 to such counsel performing such work and a payment to cover all filing fees
upon the commencement of “blue sky” work by such counsel, with the balance of such counsel fees and expenses to be due on the Closing)); the costs of all mailing and printing of the Offering documents (including the Offering Agreement, any
Blue Sky Surveys and, if appropriate, any Agreement Among Underwriters, Selected Dealers’ Agreement, Underwriters’ Questionnaire and Power of Attorney), Registration Statements. Prospectuses and all amendments, supplements and exhibits
thereto and as many preliminary and final Prospectuses as Maxim may reasonably deem necessary; the costs and expenses of the public relations firm referred to in Paragraph 12(i) hereof; the costs of preparing, printing and delivering certificates
representing such Securities; fees and expenses of the transfer agent for such Securities; stock transfer taxes, if any, payable upon the transfer of securities from the Company to Maxim; the fees and expenses of the Company’s accountants and
the fees and expenses of the Company’s legal counsel and other agents and representatives. Upon Maxim’s request, the Company shall provide funds to pay all such fees, expenses and disbursements in advance. For the sake of clarity, it is
understood and agreed that the Company shall be responsible for Maxim’s legal costs detailed in this Section 9 irrespective of whether the Offering is consummated or not. 

10. While the Commission is reviewing the Registration Statement, Maxim may plan and arrange one or more “road show” marketing trips
for the Company’s management to meet with prospective investors. Such trips will include visits to a number of prospective institutional and retail investors. The Company shall pay for all expenses, including, without limitation, travel and
lodging expenses, associated with such trips. During the 45-day period prior to the filing of the Registration Statement with the Commission, and at all times thereafter prior and following to the effectiveness of the Registration Statement, the
Company and its officers, directors and related parties will abide by all rules and regulations of the Commission relating to public offerings, including, without limitation, those relating to public statements (i.e., “gun jumping”) and
disclosures of material non-public information. 

  
 Members FINRA &
SIPC 
 405 Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 

			
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 11. At such time as the
Company and Maxim are mutually satisfied that it is appropriate to commence the Offering, the final terms of the Underwriting Agreement will be negotiated and the Company and Maxim will request the Commission to make the Registration Statement
effective. 
 12. The Underwriting Agreement shall provide that, at the Closing, the Company shall grant to Maxim (or its designated
affiliates) share purchase warrants (the “Underwriter’s Warrants”) covering a number of Securities equal up to five percent (5.0%) of the total number of Securities being sold in the Offering. The Underwriter’s
Warrants will be non-exercisable for six (6) months after the date of the Closing and will expire five years after such date. The Underwriter’s Warrants will be exercisable at a price equal to 110.0% of the public offering price in
connection with the Offering. The Underwriter’s Warrants shall not be redeemable. The Company will register the Securities of Securities underlying the Underwriter’s Warrants under the Act and will file all necessary undertakings in
connection therewith. The Underwriter’s Warrants may not be transferred, assigned or hypothecated for a period of six (6) months following the Closing, except that they may be assigned, in whole or in part, to any successor, officer,
manager or member of Maxim (or to officers, managers or members of any such successor or member), and to members of the underwriting syndicate or selling group. The Underwriter’s Warrants may be exercised as to all or a lesser number of
Securities of Securities, will provide for cashless exercise and will contain provisions for one demand registration of the sale of the underlying Securities of Securities at the Company’s expense, an additional demand registration at the
warrant holders’ expense, and unlimited “piggyback” registration rights for a period of seven years after the Closing at the Company’s expense. The Underwriter’s Warrants shall further provide for adjustment in the number
and price of such warrants (and the Securities of Securities underlying such warrants) to prevent dilution. 
 13. The Offering shall be
conditioned upon, among other things, the following: 
 a. Satisfactory completion by Maxim of its due diligence investigation and analysis
of: (i) the Company’s arrangements with its officers, directors, employees, affiliates, customers and suppliers, (ii) the audited historical financial statements of the Company as required by the SEC (including any relevant stub
periods), and (iii) the Company’s projected financial results for the fiscal years ending June 30, 2013 through 2016; 
 b.
The execution by the Company and Maxim of a definitive Underwriting Agreement containing all applicable terms and conditions provided for in this engagement letter; 

c. Neither the Company nor any of its affiliates has, either prior to the initial filing or the effective date of the Registration Statement,
made any offer or sale of any securities which are required to be “integrated” pursuant to the Act or the regulations thereunder with the offer and sale of the Securities pursuant to the Registration Statement; 

d. The Company’s registration of the Securities under the provisions of Section 12(b) or (g), as applicable, of the Securities
Exchange Act of 1934 on or prior to the effective date of the Offering; 
 e. The Company maintaining the retention of a nationally
recognized, PCAOB registered firm of independent certified public accountants acceptable to Maxim and the Company, which will have responsibility for the preparation of the financial statements and the financial exhibits, if any, to be included in
the Private Placement Materials or any subsequent resale registration statement, it being agreed that the Company will continue to engage a nationally recognized, PCAOB registered accounting firm of comparable quality (as may be determined by the
Company’s audit committee) for a period of at least three years after the Closing; 

  
 Members FINRA &
SIPC 
 405 Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 

			
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 f. The Company
retaining a financial printer acceptable to Maxim to handle the printing and related aspects of the Offering; 
 g. The Company retaining a
transfer agent for the Company’s Securities reasonably acceptable to Maxim and continuing to retain such transfer agent for a period of three (3) years after the Closing; 

h. The Company engaging a financial public relations firm reasonably acceptable to Maxim, which firm shall be experienced in assisting
issuers in public offerings of securities and in their relations with their security holders, and continuing to retain such firm for a period of two years after the Closing; 

i. The Company registering with the Corporation Records Service (including annual report information) published by Standard &
Poor’s Corporation and covenanting to maintain such registration for a period of three (3) years from the Closing; 
 j. The
Company shall have procured and shall covenant to maintain “key man” life insurance (in amounts agreed to by Maxim and with the Company as the sole beneficiary thereof) with an insurer rated at least AA or better in the most recent edition
of “Best’s Life Reports” on the lives of to be determined executive officer or officers of the Company; and 
 k. The
Company undertaking its best efforts to meet the criteria necessary for inclusion of the Securities on the Nasdaq Market System, NYSE or the NYSE MKT and seeking and using its best efforts to maintain such listing for a period of at lest three years
after the Closing. 
 14. Upon the successful completion of the Offering, for a period of eighteen (18) months from the closing the
Offering, the Company grants Maxim the right of first refusal to act as lead managing underwriter and book runner or minimally as a co-lead manager and co-book runner and/or lead placement agent with at least 65.0% of the economics; or, in the case
of a three-handed deal 40.0% of the economics, for any and all future public and private equity, equity linked or debt offerings (each a “Future Financing”) during such eighteen (18) month period of the Company or any successor
to the Company. 
 15. Except as provided in Paragraph 1 hereof, this Paragraph 15 and Paragraphs 16, 17, 18, 19, 20, 21 and 22 (and Exhibit
A attached hereto) hereof (which Paragraphs are intended be legally binding and enforceable on and against the Company and Maxim), this engagement letter is not intended to be a binding legal document, as the agreement between the parties hereto on
these matters will be embodied in the Underwriting Agreement. Until the Underwriting Agreement has been finally negotiated and signed, but subject to the last sentence of this Paragraph, the Company or Maxim may at any time terminate its further
participation in the proposed transactions and the party so terminating shall have no liability to the other on account of any matters provided for herein, except that: 

a. regardless of which party elects to terminate, the Company agrees to reimburse Maxim for, or otherwise pay and bear, the expenses and fees
to be paid and borne by the Company as provided for in Paragraphs 9 and 10 above and to reimburse Maxim for the full amount of its accountable expenses incurred to such date (which shall include, but shall not be limited to, all fees and
disbursements of Maxim’s counsel, travel, lodging and other “road show” expenses, mailing, printing and reproduction expenses, and any expenses incurred by Maxim in conducting its due diligence) and; 

  
 Members FINRA &
SIPC 
 405 Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 

			
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 b. if the Company
elects to terminate for any reason even though Maxim was prepared to proceed with the Offering reasonably within the intent of this engagement letter (i) the irrevocable preferential rights referred to in Paragraphs 14 hereof shall nonetheless
become operative and legally binding and shall remain in full force and effect for a period of eighteen (18) months from the date of such termination. 

16. The Company represents and warrants to Maxim that the entry into this engagement letter or the any other action of the Company in
connection with the proposed Offering will not violate any agreement between the Company and any other underwriter. 
 17. The Company
agrees that it will not issue press releases or engage in any other publicity, without Maxim’s prior written consent, commencing on the date hereof and continuing for a period of forty (40) days from Closing of the Offering, other than
normal and customary releases issued in the ordinary course of the Company’s business. The Company covenants to adhere to all “gun jumping” and “quiet period” rules and regulations of the Commission prior to, during and
following the filing of the Registration Statement and the consummation of the Offering. 
 18. During the Engagement Period or until the
Closing, the Company agrees to cooperate with Maxim and to furnish, or cause to be furnished, to Maxim, any and all information and data concerning the Company, its subsidiaries and the Offering that Maxim deems appropriate, including, without
limitation, the Company’s acquisition plans and plans for raising capital or additional financing (the “Information”). The Company shall provide Maxim reasonable access during normal business hours from and after the date of
execution of this Agreement until the date of the Closing to all of the Company’s and its subsidiaries assets, properties, books, contracts, commitments and records and to the Company’s and its subsidiaries officers, directors, employees,
appraisers, independent accountants, legal counsel and other consultants and advisors. The Company represents and warrants to Maxim that all Information: (i) made available by the Company to Maxim or its agents, representatives and any
potential syndicate or selling group member, (ii) contained in any preliminary or final Prospectus prepared by the Company in connection with the Offering, and (3) contained in any filing by the Company with any court or governmental
regulatory agency, commission or instrumentality, will be complete and correct in all material respects and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein not
misleading in the light of the circumstances under which such statements are made. The Company further represents and warrants to Maxim that all such Information will have been prepared by the Company in good faith and will be based upon assumptions
which, in light of the circumstances under which they were made, are reasonable. The Company acknowledges and agrees that in rendering its services hereunder, Maxim will be using and relying on such information (and information available from public
sources and other sources deemed reliable by Maxim) without independent verification thereof by Maxim or independent appraisal by Maxim of any of the Company’s assets. The Company acknowledges and agrees that this engagement letter and the
terms hereof are confidential and will not be disclosed to anyone other than the officers and directors of the Company and the Company’s accountants and legal counsel. Except as contemplated by the terms hereof or as required by applicable law,
the Company and Maxim shall keep strictly confidential all non-public Information concerning the Company provided to Maxim. No obligation of confidentiality shall apply to Information that: (a) is in the public domain as of the date hereof or
hereafter enters the public domain without a breach by Maxim, (b) was known or became known by Maxim prior to the Company’s disclosure thereof to Maxim, (c) becomes known to Maxim from a source other than the Company, and other than
by the breach of an obligation of confidentiality owed to the Company, (d) is disclosed by the Company to a third party without restrictions on its disclosure or (e) is independently developed by Maxim. 

  
 Members FINRA &
SIPC 
 405 Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 

			
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 19. This engagement
letter shall be deemed to have been made and delivered in New York City and both this engagement letter and the transactions contemplated hereby shall be governed as to validity, interpretation, construction, effect and in all other respects by the
internal laws of the State of New York, without regard to the conflict of laws principles thereof. 
 20. The Company agrees that any and
all decisions, acts, actions, or omissions with respect to the Offering shall be the sole responsibility of the Company, and that the performance by Maxim of services hereunder will in no way expose Maxim to any liability for any such decisions,
acts, actions or omissions of the Company. 
 21. Maxim reserves the right to reduce any item of its compensation or adjust the terms
thereof as specified herein in the event that a determination and/or suggestion shall be made by FINRA to the effect that the underwriters’ aggregate compensation is in excess of FINRA rules or that the terms thereof require adjustment;
provided, however, the aggregate compensation otherwise to be paid to the underwriters by the Company may not be increased above the amounts stated herein without the approval of the Company. 

22. Maxim and the Company: (i) agree that any legal suit, action or proceeding arising out of or relating to this engagement letter
and/or the transactions contemplated hereby shall be instituted exclusively in New York Supreme Court, County of New York, or in the United States District Court for the Southern District of New York, (ii) waive any objection which they may
have or hereafter to the venue of any such suit, action or proceeding, and (iii) irrevocably consent to the jurisdiction of the New York Supreme Court, County of New York, and the United States District Court for the Southern District of New
York in any such suit, action or proceeding. Maxim and the Company further agree to accept and acknowledge service of any and all process which may be served in any such suit, action or proceeding in the New York Supreme Court, County of New York,
or in the United States District Court for the Southern District of New York and agree that service of process upon the Company mailed by certified mail to the Company’s address shall be deemed in every respect effective service of process upon
the Company, in any such suit, action or proceeding, and service of process upon Maxim mailed by certified mail to Maxim’s address shall be deemed in every respect effective service process upon Maxim, in any such suit, action or proceeding.
Notwithstanding any provision of this engagement letter to the contrary, the Company agrees that neither Maxim nor its affiliates, and the respective officers, directors, employees, agents and representatives of Maxim, its affiliates and each other
person, if any, controlling Maxim or any of its affiliates, shall have any liability (whether direct or indirect, in contract or tort or otherwise) to the Company for or in connection with the engagement and transaction described herein except for
any such liability for losses, claims, damages or liabilities incurred by us that are finally judicially determined to have resulted from the bad faith or gross negligence of such individuals or entities. Maxim will act under this engagement letter
as an independent contractor with duties to the Company. Because Maxim will be acting on the Company’s behalf in this capacity, it is Maxim’s practice to receive indemnification. A copy of Maxim’s standard indemnification form is
attached to this engagement letter as Exhibit A. 
 (Signature Page and Indemnification Provisions Follow) 

  
 Members FINRA &
SIPC 
 405 Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 

			
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 We are delighted at the
prospect of continuing our working relationship with you. If you are in agreement with the foregoing, please execute and return two copies of this engagement letter to the undersigned together with payment for the Initial Advance. This engagement
letter may be executed in counterparts and by facsimile transmission. 
  

					
	Yours truly,
	
	MAXIM GROUP LLC
		
	By:	 	/S/ Karl Brenza
		 	Name:	 	Karl Brenza
		 	 Title:
	 	Senior Managing Director, Investment Banking
		
	By:	 	/S/ Clifford A. Teller
		 	Name:	 	Clifford A. Teller
		 	Title:	 	Executive Managing Director, Investment Banking

  

			
	ACCEPTED AND AGREED TO AS OF
	THE DATE FIRST ABOVE WRITTEN:
	
	Medifocus, Inc.
	
	/S/ Augustine Cheung
	Name:	 	Dr. Augustine Cheung
	Title:	 	Founder, CEO & President

 (Signature Page to Engagement Letter) 

(Indemnification Provisions Begins on Next Page) 

  
 Members FINRA &
SIPC 
 405 Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 

			
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 EXHIBIT A

 INDEMNIFICATION PROVISIONS 

In connection with the engagement letter to which this Exhibit A is attached (the “Engagement Letter”), the Company and the
Sponsor (the “Indemnitors”) agree to indemnify and hold harmless Maxim and its affiliates, and the respective officers, directors, employees, agents and representatives of Maxim, its affiliates and each other person, if any,
controlling Maxim or any of its affiliates (Maxim and each such other person being an “Indemnified Person”) from and against any losses, claims, damages or liabilities related to, arising out of or in connection with the engagement
(the “Engagement”) under the Engagement Letter, and will reimburse each Indemnified Person for all expenses (including fees and expenses of counsel) as they are incurred in connection with investigating, preparing, pursuing or
defending any action, claim, suit, investigation or proceeding related to, arising out of or in connection with the Engagement, whether or not pending or threatened and whether or not any Indemnified Person is a party. The Indemnitors will not,
however, be responsible for any losses, claims, damages or liabilities (or expenses relating thereto) that are judicially determined in a judgment not subject to appeal to have resulted from the bad faith or gross negligence of any Indemnified
Person. 
 Neither Indemnitor will, without Maxim’s prior written consent, settle, compromise, consent to the entry of any judgment in
or otherwise seek to terminate any action, claim, suit or proceeding in respect of which indemnification may be sought hereunder (whether or not any Indemnified Person is a party thereto) unless such settlement, compromise, consent or termination
includes a release of each Indemnified Person from any liabilities arising out of such action, claim, suit or proceeding. No Indemnified Person seeking indemnification, reimbursement or contribution under this agreement will, without the prior
written consent of the Indemnitors, settle, compromise, consent to the entry of any judgment in or otherwise seek to terminate any action, claim, suit, investigation or proceeding referred to in the preceding paragraph. 

If the indemnification provided for in the first paragraph of this Exhibit A is judicially determined to be unavailable (other than in
accordance with the third sentence of the first paragraph hereof) to an Indemnified Person in respect of any losses, claims, damages or liabilities referred to herein, then, in lieu of indemnifying such Indemnified Person hereunder, the Indemnitors
shall contribute to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities (and expense relating thereto): (i) in such proportion as is appropriate to reflect the relative benefits to
the applicable Indemnified Person, on the one hand, and the Indemnitors, on the other hand, of the Engagement or (ii) if the allocation provided by clause (i) above is not available, in such proportion as is appropriate to reflect not only
the relative benefits referred to in such clause (i) but also the relative fault of each of the applicable Indemnified Person and the Indemnitors, as well as any other relevant equitable considerations; provided, however, that in no
event shall any Indemnified Person’s aggregate contribution to the amount paid or payable exceed the aggregate amount of fees actually received by Maxim under the Engagement Letter. Assuming that the Indemnitors have fully satisfied the amount
of their obligations provided for herein to the Indemnified Persons, and the Indemnified Persons shall have no further liabilities in connection therewith, then the Indemnitors may take control of any pending action or litigation in order to reduce
the expenses in connection therewith. For the purposes of this Exhibit A, the relative benefits to the Indemnitors and the applicable Indemnified Person of the Engagement shall be deemed to be in the same proportion as: (a) the total value paid
or contemplated to be paid or received or contemplated to be received by the Indemnitors and their affiliates (including the Company’s stockholders), as the case may be, in the transaction or transactions that are the subject of the Engagement,
whether or not any such transaction is consummated, bears to (b) the fees paid to Maxim in connection with the Engagement. 

  
 Members FINRA &
SIPC 
 405 Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 

			
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 Procedure. Upon
obtaining knowledge of any claim which may give rise to indemnification not involving a Third Party Claim, the Indemnified Person shall, as promptly as practicable following the date the Indemnified Person has obtained such knowledge, give written
notice (which may be delivered by facsimile transmission, with confirmation of receipt by the receiving party) of such claim for which indemnification is sought (each, a “Claim”) to the Indemnitors, but no failure to give such
notice shall relieve the Indemnitors of any liability hereunder (except to the extent that the Indemnitors have suffered actual, irreversible and material economic prejudice thereby). The Indemnified Person, at its cost, shall furnish to the
Indemnitors in good faith and in reasonable detail such information as the Indemnified Person may have with respect to such Claim. 

Promptly after receipt by an Indemnified Person of notice of the commencement of any action, suit or proceeding involving a Claim by a third
party (each, a “Third Party Claim”) against it, such Indemnified Person will give written notice to the Indemnitors of the commencement of such Third Party Claim, and shall give the Indemnifying Party such information with respect
thereto as the Indemnitors may reasonably request, but no failure to give such notice shall relieve the Indemnitors of any liability hereunder (except to the extent the Indemnitors have suffered actual, irreversible and material economic prejudice
thereby). The Indemnitors shall have the right, but not the obligation, to assume the defense and control the settlement of such Third Party Claim, at their cost and expense (and not as a reduction in the amount of indemnification available
hereunder), using counsel selected by the Indemnitors and reasonably acceptable to the Indemnified Person. If the Indemnitors satisfy the requirements of this Exhibit A and desire to exercise our right to assume the defense and control the
settlement of such Third Party Claim, the Indemnitors shall give written notice (the “Notice”) to the Indemnified Person within fourteen (14) calendar days of receipt of notice from the Indemnified Person of the commencement of
or assertion of any Third Party Claim stating that the Indemnitors shall be responsible for such Third Party Claim. Notwithstanding the foregoing, the Indemnified Person shall have the right: (i) to assume the defense and control the settlement
of a Third Party Claim and (ii) to employ separate counsel at our reasonable expense (provided that the Indemnitors shall not be required to reimburse the expenses and costs of more than one law firm) and control its own defense of a Third
Party Claim if (x) the named parties to any such action (including any impleaded parties) include both the Indemnified Person and us, and the Indemnified Person shall have been advised by counsel that there are one or more legal or equitable
defenses available to the Indemnified Person that are different from those available to the Indemnitors, (y) such Third Party Claim involves equitable or other non-monetary damages or in the reasonable judgment of the Indemnified Person, such
settlement would have a continuing material adverse effect on the Indemnified Person’s business (including any material impairment of its relationships with customers and suppliers) or (z) or in the reasonable judgment of the Indemnified
Person, the Indemnitors may not be able to satisfy fully such Third Party Claim. In addition, if the Indemnitors fail to give the Indemnified Person the Notice in accordance with the terms hereof, the Indemnified Person shall have the right to
assume control of the defense of and settle the Third Party Claim and all costs incurred in connection therewith shall constitute damages of the Indemnified Person. For the avoidance of doubt, the Indemnitors acknowledge that they will advance any
retainer fees required by legal counsel to an Indemnified Person simultaneously with the engagement by such Indemnified Person of such counsel, it being understood and agreed that the amount of such retainer shall not exceed $20,000 and that such
retainer shall be credited to fees incurred with the balance (if any) refundable to the Indemnitors. 
 If at any time after the Indemnitors
assume the defense of a Third Party Claim, any of the conditions set forth in the paragraph above are no longer satisfied, the Indemnified Person shall have the same rights as set forth above as if the Indemnitors never assumed the defense of such
claim. 
 Notwithstanding the foregoing, the Indemnitors or the Indemnified Person, as the case may be, shall have the right to participate,
at the Indemnitors’ or the Indemnified Person’s own expense, in the defense of any Third Party Claim that the other party is defending. 

  
 Members FINRA &
SIPC 
 405 Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com 

			
	 June     , 2013
 Medifocus,
Inc.
  Page
 11

	  	

  
 If the Indemnitors
assume the defense of any Third Party Claim in accordance with the terms hereof, the Indemnitors shall have the right, upon 30 calendar days’ prior written notice to the Indemnified Person, to consent to the entry of judgment with respect to,
or otherwise settle such Third Party Claim; provided, however, that with respect to such consent to the entry of judgment or settlement, the Indemnified Person will not have any liability and will be fully indemnified with respect to all Third Party
Claims. Notwithstanding the foregoing, the Indemnitors shall not have the right to consent to the entry of judgment with respect to, or otherwise settle a Third Party Claim if: (i) the consent to judgment or settlement of such Third Party Claim
involves equitable or other non-monetary damages against the Indemnified Person, or (ii) in the reasonable judgment of the Indemnified Person, such settlement would have a continuing effect on the Indemnified Person’s business (including
any material impairment of its relationships with customers and suppliers), without the prior written consent of the Indemnified Person. In addition, the Indemnified Person shall have the sole and exclusive right to settle any Third Party Claim on
such terms and conditions as it deems reasonably appropriate, (x) if the Indemnitors fail to assume the defense in accordance with the terms hereof, or (y) to the extent such Third Party Claim involves only equitable or other non-monetary
relief, and shall have the right to settle any Third Party Claim involving monetary damages with our consent, which consent shall not be unreasonably withheld. 

The provisions of this Exhibit A shall apply to the Engagement and any modification thereof and shall remain in full force and effect
regardless of any termination or the completion of Maxim’s services under the Engagement Letter. 

  
 Members FINRA &
SIPC 
 405 Lexington Ave. * New York, NY 10174 * tel (212) 895-3500 * (800) 724-0761 * fax (212) 895-3783 * www.maximgrp.com

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