Document:

Exhibit 10.9

 

THE SECURITIES REFERENCED HEREIN HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE
SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO
OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933.

 

 

SUBORDINATED CONVERTIBLE PROMISSORY NOTE

 

	$308,720	28 February , 2020
	 	San Mateo, California

 

For value received, Nocimed,
Inc., a Delaware corporation (the “Company”), promises to pay to NuVasive, Inc. (the “Holder”),
the principal sum of Three Hundred Eight Thousand Seven Hundred Twenty ($308,720). Interest shall accrue from the date of this Convertible
Promissory Note (this “Note”) on the unpaid principal amount at a rate equal to 10.00% per annum, computed as simple
interest on the basis of a year of 365 days. If a Change of Control or the Next Equity Financing (as such terms are defined herein) is
consummated, all interest on this Note shall be deemed to have stopped accruing as of a date selected by the Company that is up to 10
days prior to the signing of the definitive agreement for such Change of Control or Next Equity Financing. This Note is subject to the
following terms and conditions.

 

1.Basic Terms.

 

(a)              
Maturity. While this Note is outstanding, principal and any accrued but unpaid interest under this Note shall be due
and payable upon demand of the Holder at any time after December 31, 2020 (the “Maturity Date”). Subject to Section
2 below, interest shall accrue on this Note and shall be due and payable with each installment of principal. Notwithstanding the foregoing,
the entire unpaid principal sum of this Note, together with accrued and unpaid interest thereon, shall become immediately due and payable
upon the commission of any act of bankruptcy by the Company, the execution by the Company of a general assignment for the benefit of creditors,
the filing by or against the Company of a petition in bankruptcy or any petition for relief under the federal bankruptcy act or the continuation
of such petition without dismissal for a period of 90 days or more, or the appointment of a receiver or trustee to take possession of
the property or assets of the Company.

 

(b)             
Series of Notes. This Note is one of a series of Subordinated Convertible Promissory Notes containing substantially
identical terms and conditions issued pursuant to that certain Subordinated Convertible Promissory Note and Warrant Purchase Agreement
dated February __, 2020 (the “Purchase Agreement”). Such Notes are referred to herein as the “Notes,”
the holders thereof are referred to herein as the “Holders,” and the Holders of at least a majority of the aggregate
unpaid principal amount of the Notes are referred to herein as the “Majority Holders,” The Company shall maintain a
ledger of all Holders. Capitalized terms not otherwise defined herein have the meaning given them in the Purchase Agreement.

4156-8092-7010.1

 

(c)             
Securities. The Notes, the Warrants and the equity securities issuable upon conversion or exercise thereof are collectively
referred to herein as the “Securities.”

 

(d)             
Payment; Prepayment. All payments shall be made in lawful money of the United States of America at such place as the
Holder hereof may from time to time designate in writing to the Company. Payment shall be credited first to the accrued interest then
due and payable and the remainder shall be applied to principal. The Company may: (i) prepay this Note at any time without penalty with
the written consent of the Majority Holders; or (ii) pay principal of and interest on this Note at or after Maturity; provided that in
either case all of the Notes shall be paid or prepaid on a pro rata basis.

 

 

 

 

    	 	1	 

     

    

 

2.       Conversion.

 

(a)       Next
Equity Financing Conversion. Outstanding principal of and (at each Holder’s option) any accrued but unpaid interest under
this Note (the “Conversion Amount”) shall be converted into equity securities at the initial closing of the Company’s
next sale of capital stock in a single transaction or a series of related transactions yielding gross proceeds to the Company of at least
$10,000,000 (including conversion of the Notes and other outstanding convertible notes, safes or equity certificates) (the “Next
Equity Financing”).

 

(i)               
Terms of Conversion. If there is a Next Equity Financing before the termination of this instrument, the Company will
automatically issue to the Holder a number of shares of Shadow Preferred Stock equal to the Conversion Amount divided by the Conversion
Price.

 

(ii)             
Documents. The issuance of shares upon such conversion shall be upon the terms and subject to the conditions applicable
to the Next Equity Financing and the Company’s Certificate of Incorporation and Bylaws and other corporate governing documents,
as determined by the Company and its investors in their sole discretion. In connection with such conversion of this Note, the Holder hereby
agrees to execute and deliver to the Company all transaction documents related to the Next Equity Financing, including a purchase agreement
and other ancillary agreements, with customary representations and warranties and transfer restrictions (including a lock-up agreement
in connection with an initial public offering).

 

(iii)            
Definitions.

 

(1)              
“Capital Stock” means the capital stock of the Company, including, without limitation, the “Common Stock”
and the “Preferred Stock.”

 

(2)              
“Capped Price” means the price per share equal to the Valuation Cap divided by the Company Capitalization.

 

(3)              
“Company Capitalization” means the sum, as of immediately prior to the Next Equity Financing (or Change of
Control), of: (i) all shares of Capital Stock (on an as-converted basis) issued and outstanding, assuming exercise or conversion of all
outstanding vested and unvested options, warrants and other convertible securities, but excluding (A) this instrument, (B) all other
Notes (or similar instruments), and (C) convertible equity certificates or safes; and (ii) all shares of Common Stock reserved and available
for future grant under any equity incentive or similar plan of the Company, and/or any equity incentive or similar plan to be created
or increased in connection with the Next Equity Financing.

 

(4)              
“Conversion Price” means either: (i) the Capped Price or (ii) the Discount Price, whichever is less.

 

(5)              
“Discount Price” means the price per share of the Standard Preferred Stock sold in the Next Equity Financing
multiplied by the Discount Rate.

 

(6)              
“Discount Rate” means 80.00%.

 

(7)              
“Maturity Capitalization” means the number, as of immediately prior to the conversion pursuant to Section 2(b),
of shares of Capital Stock (on an as-converted basis) outstanding, assuming exercise or conversion of all outstanding vested and unvested
options, warrants and other convertible securities, but excluding: (i) shares of Common Stock reserved and available for future grant
under any equity incentive or similar plan; (ii) this instrument; (iii) other Notes (or similar instruments); and (iv) convertible equity
certificates or safes.

 

(8)              
“Note Percentage” means 55% times a fraction, the numerator of which is the final, aggregate principal amount
of the Notes and the denominator of which is $2,500,000.

 

 

 

 

    	 	2	 

     

    

 

(9)           
“Shadow Preferred Stock” means the shares of a series of Preferred Stock issued to the Holder in a Next Equity
Financing, having the identical rights, privileges, preferences and restrictions as the shares of Standard Preferred Stock, other than
with respect to: (i) the per share liquidation preference and the conversion price for purposes of price-based anti-dilution protection,
which will equal the Conversion Price; and (ii) the basis for any dividend rights, which will be based on the Conversion Price.

 

(10)          
“Standard Preferred Stock” means the shares of a series of Preferred Stock issued to the investors investing
new money in the Company in connection with the initial closing of the Next Equity Financing.

 

(11)          
“Valuation Cap” means $50,000,000.

 

(b)       Maturity
Conversion. If the Next Equity Financing has not been consummated on or before the Maturity Date, the aggregate Conversion
Amount of all outstanding Notes shall convert upon the election of the Majority Holders, delivered to the Company on or before the
Maturity Date, into such number of shares of a next series of Preferred Stock of the Company (the “Maturity Conversion
Preferred”) to be determined and described as a completely new Series of Preferred Stock (and not sub-class of existing
any Series of Preferred Stock) identical to the current Series B-1 Preferred Stock subject to the following changes:

 

(1)          
The
principal of and accrued interest on all Notes shall convert into a number of shares of Maturity Conversion Preferred that
represents the Note Percentage of a number of aggregate shares of capital stock equal to the sum of: (i) the Maturity Capitalization
on an as converted to Common Stock basis; plus (ii) the number of shares of Maturity Conversion Preferred issued upon such
conversion of all the Notes;

 

(2)          
The conversion price and Original Issue Price per share of the Maturity Conversion Preferred (as used in the Company’s Amended
and Restated Certificate of Incorporation) (the “Company Charter”) shall be equal to the quotient equal to:
(i) the aggregate principal amount plus accrued but unpaid interest on all Notes; divided by (ii) the number of shares of Maturity
Conversion Preferred issued upon conversion of such Notes pursuant to the preceding clause (1) of this Section 2(b);

 

(3)          
In the event of a Liquidation Event (as defined in the Company Charter), the Maturity Conversion Preferred shares shall be entitled
to be paid out of the assets of the Company legally available for distribution on a parri passu basis, prior and in preference to any
distribution to the Series B-1 Preferred Stock, the Series B Preferred Stock, the Series A-4 Preferred Stock, the Series A-3 Preferred
Stock, the Series A-2 Preferred Stock, the Series A-1 Preferred Stock, and any other shares of capital stock of the Company, on a parri
passu basis, an amount per share equal to two times the Original Issue Price of the Maturity Conversion Preferred plus accrued but unpaid
interest, and after payment in full of the Series B-1 Liquidation Preference, the Series B Liquidation Preference, the Series A-4 Liquidation
Preference, the Series A-3 Liquidation Preference, the Series A-2 Liquidation Preference, and the Series A-1 Liquidation Preference (each
as defined in the Company Charter), the remaining assets of the Company legally available for distribution in a Liquidation Event shall
be distributed ratably to the holders of the Common Stock, the Series B-1 Preferred Stock, the Series B Preferred Stock, the Series A-4
Preferred Stock, the Series A-3 Preferred Stock, the Series A-2 Preferred Stock and the Series A-1 Preferred Stock, on an as if converted
to Common Stock basis, provided that the Series B-1 Preferred Stock, the Series B Preferred Stock, the Series A-4 Preferred Stock, the
Series A-3 Preferred Stock, the Series A-2 Preferred Stock and the Series A-1 Preferred Stock Series B-1 Preferred Stock shall be subject
to the Series B-1 Liquidation Preference Cap, the Series B Liquidation Preference Cap, the Series A-4 Liquidation Preference Cap, the
Series A-3 Liquidation Preference Cap, the Series A-2 Liquidation Preference Cap and the Series A-1 Liquidation Preference Cap, respectively,
all in accordance with the Company Charter;

 

(4)          
The holders of a majority of the Maturity Conversion Preferred shall be entitle to elect two members of the Board of Directors;

 

 

 

 

    	 	3	 

     

    

 

(5)          
The holders of the requisite numbers of shares of Series B-1 Preferred Stock, Series B Preferred Stock, Series A-4 Preferred Stock,
Series A-3 Preferred Stock, Series A-2 Preferred Stock and Series A-1 Preferred Stock necessary to waive any applicable price-based anti-dilution
rights as to each such series of Preferred Stock resulting from the issuance of the Maturity Conversion Preferred and each such series
of Preferred Stock shall no longer have any price-based anti-dilution rights with respect to those shares of Series B-1 Preferred Stock,
Series B Preferred Stock, Series A-4 Preferred Stock, Series A-3 Preferred Stock, Series A-2 Preferred Stock and Series A-1 Preferred
Stock;

 

(6)          
Any and all redemption rights set forth in Section 5 of the Company Charter held by the Series B-1 Preferred Stock and the Series
B Preferred Stock shall be permanently waived and shall be eliminated and removed from the Company Charter;

 

(7)          
Any and all rights under “Separate Vote of Series B Preferred and Series B-1 Preferred” as set forth in Section 2(b)
of the Company Charter shall be permanently waived and shall be eliminated and removed from the Company Charter; and

 

(8)          
The Amended and Restated Voting Agreement dated as of October 19, 2018 shall be amended to remove any specific rights of the holders
of the Series B-1 Preferred Stock, the Series B Preferred Stock, the Series A-4 Preferred Stock, the Series A-3 Preferred Stock, the Series
A-2 Preferred Stock and the Series A-1 Preferred Stock, individually or collectively to elect any specific director or directors.

 

3.                 
Change of Control. In the event of a Change of Control (as defined below) prior to repayment or conversion in full of
this Note, the outstanding principal and any accrued but unpaid interest on this Note shall become immediately due and payable prior to
such Change of Control; provided that at the option of the Majority Holders, the Notes will convert into shares of the Company’s
Common Stock at a price equal to the Discount Rate multiplied by the price per share of Common Stock paid at the Change of Control. In
connection with a Change of Control intended to qualify as a tax-free reorganization, the Company may reduce the principal and interest
payable to the Holders by the amount determined by its board of directors in good faith to be advisable for such Change of Control to
qualify as a tax-free reorganization for U.S. federal income tax purposes, and in such case, the Holder will automatically receive the
number of shares of Common Stock equal to the remaining unpaid principal and interest divided by the Discount Rate multiplied by the price
per share of Common Stock paid at the Change of Control. The term “Change of Control” means (i) a sale of all or substantially
all of the Company’s assets other than to an Excluded Entity (as defined below), (ii) a merger, consolidation or other capital reorganization
or business combination transaction of the Company with or into another corporation, limited liability company or other entity other than
an Excluded Entity, or (iii) the consummation of a transaction, or series of related transactions, in which any “person” (as
such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”))
becomes the “beneficial owner” (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of all of the Company’s
then outstanding voting securities. Notwithstanding the foregoing, a transaction shall not constitute a Change of Control if its purpose
is to (A) change the jurisdiction of the Company’s incorporation, (B) create a holding company that will be owned in substantially
the same proportions by the persons who hold the Company’s securities immediately before such transaction, or (C) obtain funding
for the Company in a financing that is approved by the Company’s Board of Directors. An “Excluded Entity” means
a corporation or other entity of which the holders of voting capital stock of the Company outstanding immediately prior to such transaction
are the direct or indirect holders of voting securities representing at least a majority of the votes entitled to be cast by all of such
corporation’s or other entity’s voting securities outstanding immediately after such transaction.

 

4.                 
Mechanics and Effect of Conversion. In connection with any conversion of this Note, the Holder shall surrender this
Note, duly endorsed, to the Company or any transfer agent of the Company, and shall deliver to the Company any other documentation reasonably
required by the Company in connection with such conversion (including, in the event of a conversion of this Note into capital stock,
the applicable transaction documents). The Company shall not be required to issue or deliver the capital stock or other property into
which this Note may convert until the Holder has surrendered this Note to the Company and delivered to the Company such documentation.
Upon conversion of this Note, the Company will be forever released from all of its obligations and liabilities under this Note with regard
to that portion of the principal amount and accrued interest being converted including without limitation the obligation to pay such
portion of the principal amount and accrued interest.

 

 

 

 

    	 	4	 

     

    

 

5.                 
Stockholders, Officers and Directors Not Liable. In no event shall any stockholder, officer or director of the Company
be liable for any amounts due or payable pursuant to this Note.

 

6.                 
Subordination.

 

(a)              
The indebtedness evidenced by this Note is hereby expressly subordinated, to the extent and in the manner hereinafter set forth,
in right of payment to the prior payment in full of all of the Company’s Senior Indebtedness. The Holder further agrees to execute
a form of subordination agreement, as requested by any current or future lender to the Company, to effect the foregoing subordination.
“Senior Indebtedness” shall mean the principal of and unpaid interest and premium, if any, on (i) indebtedness of the
Company or with respect to which the Company is a guarantor, whether outstanding on the date hereof or hereafter created, to banks, insurance
companies or other lending or thrift institutions regularly engaged in the business of lending money, whether or not secured and (ii)
any deferrals, renewals or extensions or any debentures, notes or other evidence of indebtedness issued in exchange for such Senior Indebtedness.

 

(b)              
Upon any receivership, assignment for the benefit of creditors, bankruptcy, reorganization, or arrangement which creditors (whether
or not pursuant to bankruptcy or other insolvency laws), sale of all or substantially all of the assets, dissolution, liquidation, or
any other marshaling of the assets and liabilities of the Company or in the event this Note shall be declared due and payable, (i) no
amount shall be paid by the Company, whether in cash or property in respect of the principal of or interest on this Note at the time outstanding,
unless and until the full amount of any Senior Indebtedness then outstanding shall be paid in full, and (ii) no claim or proof of claim
shall be filed with the Company by or on behalf of the holder of this Note which shall assert any right to receive any payments in respect
of the principal of and interest on this Note except subject to the payment in full all of the Senior Indebtedness then outstanding.

 

(c)              
If an event of default has occurred with respect to any Senior Indebtedness, permitting the holder thereof to accelerate the maturity
thereof, then unless and until such event of default shall have been cured or waived or shall have ceased to exist, or all Senior Indebtedness
shall have been paid in full, no payment shall be made in respect of the principal of or interest on this Note.

 

(d)              
Nothing contained in this the preceding paragraphs shall impair, as between the Company and the Holder, the obligation of the
Company, which is absolute and unconditional, to pay to the Holder hereof the principal hereof and interest hereon as and when the same
shall become due and payable, or shall prevent the Holder, upon default hereunder, from exercising all rights, powers and remedies otherwise
provided herein or by applicable law, all subject to the rights, if any, of the holders of Senior Indebtedness under the preceding paragraphs
to receive cash or other properties otherwise payable or deliverable to the Holder pursuant to this Note.

 

7.                 
Interest Rate Limitation. Notwithstanding anything to the contrary contained in this Note or the Purchase Agreement
(the “Loan Documents”), the interest paid or agreed to be paid under the Loan Documents shall not exceed the maximum
rate of non-usurious interest permitted by applicable law (the “Maximum Rate”). If the Holder shall receive interest
in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal remaining owed under this Note or, if
it exceeds such unpaid principal, refunded to the Company. In determining whether the interest contracted for, charged, or received by
the Holder exceeds the Maximum Rate, the Holder may, to the extent permitted by applicable law, (a) characterize any payment that is not
principal as an expense, fee, or premium rather than interest, (b) exclude voluntary prepayments and the effects thereof, and (c) amortize,
prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the contemplated term of this Note.

 

8.                 
Action to Collect on Note. If action is instituted to collect on this Note, the Company promises to pay all of the Holder’s
costs and expenses, including reasonable attorney’s fees, incurred in connection with such action.

 

9.                 
Loss of Note. Upon receipt by the Company of evidence satisfactory to it of the loss, theft, destruction or mutilation
of this Note or any Note exchanged for it, and indemnity satisfactory to the Company (in case of loss, theft or destruction) or surrender
and cancellation of such Note (in the case of mutilation), the Company will make and deliver in lieu of such Note a new Note of like tenor.

 

 

 

 

    	 	5	 

     

    

 

10.             
Miscellaneous.

 

(a)              
Governing Law.The validity, interpretation, construction and performance of this Note, and all acts and transactions
pursuant hereto and the rights and obligations of the Company and Holder shall be governed, construed and interpreted in accordance with
the laws of the State of California, without giving effect to principles of conflicts of law.

 

(b)             
Entire Agreement. This Note, together with the Purchase Agreement and the documents referred to therein, constitute
the entire agreement and understanding between the Company and the Holder relating to the subject matter herein and supersedes all prior
or contemporaneous discussions, understandings and agreements, whether oral or written between them relating to the subject matter hereof.

 

(c)              
Amendments and Waivers. Any term of this Note may be amended only with the written consent of the Company and the Majority
Holders. Any amendment or waiver effected in accordance with this Section 10(c) shall be binding upon the Company, the Holder and each
transferee of any Note.

 

(d)             
Successors and Assigns. The terms and conditions of this Note shall inure to the benefit of and be binding upon the
respective successors and assigns of the Company and the Holder. Notwithstanding the foregoing, the Holder may not assign, pledge, or
otherwise transfer this Note without the prior written consent of the Company. Subject to the preceding sentence, this Note may be transferred
only upon surrender of the original Note for registration of transfer, duly endorsed, or accompanied by a duly executed written instrument
of transfer in form satisfactory to the Company. Thereupon, a new note for the same principal amount and interest will be issued to, and
registered in the name of, the transferee. Interest and principal are payable only to the registered holder of this Note.

 

(e)              
Notices. Any notice, demand or request required or permitted to be given under this Note shall be in writing and shall
be deemed sufficient when delivered personally or by overnight courier or sent by email, or 48 hours after being deposited in the U.S.
mail as certified or registered mail with postage prepaid, addressed to the party to be notified at such party’s address as set
forth on the signature page, as subsequently modified by written notice, or if no address is specified on the signature page, at the most
recent address set forth in the Company’s books and records.

 

(f)              
Counterparts. This Note may be executed in any number of counterparts, each of which when so executed and delivered
shall be deemed an original, and all of which together shall constitute one and the same instrument.

 

[Signature Page Follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	6	 

     

    

 

IN WITNESS WHEREOF, the Company and the Registered Holder have executed
this Stock Purchase Warrant as of the date first set forth above.

 

 

	 	 	THE COMPANY:
	 	 	 
	 	 	    NOCIMED, INC.
	 	 	 	 	 
	 	 	 	By: 	/s/ L. Brett Lanuti
	 	 	 	 	L. Brett Lanuti
	 	 	 	 	President & CEO
	 	 	 	 	 
	 	 	 	Address:
	 	 	 	951 Mariners Island Blvd, Suite 300
	 	 	 	San Mateo, California 94404
	 	 	 	United States
	 	 	 	Email: BLanuti@Nocimed.com
	 	 	 	 	 
	AGREED TO AND ACCEPTED:

	 	 	 
	 	 	 	 
	THE HOLDER:	 	 	 
	 	 	 	 
	NUVASIVE, INC.

	 	 	 
	 	 	 	 
	/s/ Sean Freeman	 	 	 
	(Signature)

	 	 	 
	 	 	 	 
	Address:	 	 	 
	7675 Lusk Blvd.	 	 	 
	San Diego, CA USA 92121	 	 	 
	Email: sfreeman@nuvasive.com	 	 	 

 

 

 

 

 

 

 

 

 

 

 

SIGNATURE PAGE TO SUBORDINATED CONVERTIBLE
NOTE (NUVASIVE)

    	 	7Exhibit 10.10

 

Execution Version

 

MARKETING
AGREEMENT

 

THIS MARKETING
AGREEMENT (this “Agreement”) is effective as of February 18, 2015 (the “Effective Date”)
by and between NOCIMED, INC., a Delaware corporation with its principal place of business at 370 Convention Way, Redwood City,
CA 94063 (“Nocimed”), and NUVASIVE, INC., a Delaware corporation with its principal place of business
at 7475 Lusk Boulevard, San Diego, CA 92121 (“NuVasive”).

 

		1.	DEFINED TERMS

 

1.1             
“Nocimed Marks” shall mean all of Nocimed’s trademarks, service marks and/or logos that are
reasonably applicable to the Technology, including, without limitation, those listed on Exhibit A hereto.

 

 1.2               “Technology” shall mean Nocimed’s NociscanTM Technology.

 

1.3             
“Technology Sales” shall mean gross installation fees, ongoing gross scan revenue, and/or all other
amounts actually received by Nocimed, its affiliates and/or its and their respective sublicensees, with respect to any sale, installation
or other disposition of the Technology, following the first regulatory clearance or approval for use of the Technology; excluding, however,
research grant funds received by Nocimed, under bona fide organized research grant fund programs, for using the Technology for in-vitro
or ex-vivo pre-clinical research, or under institutional review board (IRB) approved investigational clinical research study protocols.

 

		2.	PROMOTION AND MARKETING OF TECHNOLOGY

 

2.1             
Grant of Rights to NuVasive. Nocimed hereby grants NuVasive, during the Term (as defined below), the right to promote and market
the Technology worldwide, limited only by the rights retained by Nocimed pursuant to the terms and conditions of Section 2.2 below. Except
as expressly provided in this Article 2, no other party shall be entitled to promote and/or market the Technology anywhere in the world.

 

(a)     
Activities: NuVasive shall use its commercially reasonable efforts to promote and market the Technology worldwide during
the Term.

 

(b)  
  Campaign Consistent With Approvals. NuVasive shall promote and market the Technology, and shall appropriately train
and require its applicable personnel to promote and market the Technology, only in a manner consistent with: (a) the Nocimed Materials
(as defined below); and (b) laws, regulations, and guidelines governing such activities, as applied to the Technology, including regulatory
cleared or approved indications for use in connection with the Technology (once established).

 

2.2               Limited
Retained Rights of Nocimed. Nocimed retains the right to conduct its own promotion, marketing, and direct or indirect sales of
the Technology on its own behalf. Nocimed does not, and shall not, have the right to subcontract or otherwise delegate any such
activities to any third party; provided, however, that Nocimed may engage an Approved Provider (as defined below) to
conduct promotion and/or marketing of the Technology on Nocimed’s behalf solely to the extent that such activities are related
to the combination use of the Technology on or with such Approved Provider’s respective interfacing magnetic resonance
technologies. For clarity, in no event shall any such promotion and/or marketing activities (or related costs incurred by or on
behalf of Nocimed or any Approved Provider) be accounted against or otherwise compromise the amounts due to NuVasive as described in
Article 3 below. “Approved Provider” shall mean a provider of magnetic resonance devices and/or services
related thereto reasonably approved in writing by NuVasive, provided that each of Siemens, GE, Toshiba, Philips, Hitachi, Samsung,
and Olea (and wholly owned subsidiaries thereof) is hereby deemed an Approved Provider without the need for a separate written
approval by NuVasive.

 

 

 

    	 	1	 

     

    

 

2.3             
Product Information. Nocimed shall, at Nocimed’s expense, furnish NuVasive with sales and technical information, literature
and other marketing materials regarding Nocimed and the Technology as is reasonably necessary for NuVasive to effectively promote and
market the Technology worldwide during the Term of, and pursuant to the terms and conditions of, this Agreement (the “Nocimed
Materials”). All such Nocimed Materials so provided shall remain the property of Nocimed, and, upon reasonable request,
NuVasive will return the same to Nocimed; provided, however, that NuVasive may retain a reasonable number of hard and electronic
copies of such Nocimed Materials in its archives as is necessary for corporate and legal recordkeeping purposes. Additionally, Nocimed
shall use its best efforts to provide NuVasive with advance information with respect to any material changes of the Technology.

 

2.4             
Sales and Installation of Technology. Nocimed shall be solely responsible, at Nocimed’s sole cost and expense, for all:

 

(a)    
sales and installations of Technology, including all Technology promoted and marketed by NuVasive pursuant to this Agreement,
subject to payment by Nocimed of all amounts due to NuVasive as described in Article 3 below; and

 

(b)    
service and support (including contracting, technical, and customer) relating to the Technology, including all Technology promoted
and marketed by NuVasive pursuant to this Agreement.

 

Nocimed may
work with third parties for such activities; provided, however, that, in no event, may Nocimed engage any competitor of
NuVasive (including, without limitation, Medtronic, Stryker, Johnson & Johnson (DePuy), Globus Medical and/or Lanx) regarding the
sales, installation, service and/or support of (or any other commercial activity with respect to) the Technology in any market in which
NuVasive competes (e.g., spine), without the prior written consent of NuVasive.

 

2.5               Compliance
with Laws.

 

(a)    
Regulatory and Legal Compliance. In performing its activities under this Agreement, each party will at all times comply with
all applicable supranational, national, state, and local law and regulatory requirements. In furtherance and not limitation of the foregoing,
Nocimed shall ensure that its sales, installation, service and support of the Technology is in accordance with each of the following,
as applicable: (i) the Social Security Act; (ii) the Health Insurance Portability and Accountability Act (HIPAA), (iii) the Federal Food,
Drug, and Cosmetic Act and its implementing regulations; (iv) all rules, regulations, and guidance of the U.S. Food and Drug Administration;
and (v) all rules and regulations of the Center for Medicare and Medicaid Services (CMS).

 

(b)    
Regulatory Approvals. Nocimed shall be responsible, at its sole expense, for filing all regulatory dossiers for Technology
under its name and shall own all regulatory approvals with respect to Technology. NuVasive shall have the right to reference such approvals
to the extent necessary to perform its obligations hereunder. Nocimed shall be responsible for undertaking all activities required of
the holder of regulatory dossiers, including, but not limited to, any adverse event reporting.

 

(c)     
Foreign Corrupt Practices Act. Each party hereby agrees that it will comply with the requirements of the U.S. Foreign Corrupt
Practices Act, as amended from time- to-time (collectively, the “Act”), in conducting activities under this
Agreement, and will refrain from making any payments or gifts to third parties that could reasonably cause NuVasive or Nocimed to violate
the Act.

 

2.6             
Coordination of Activities; Reporting. Beginning promptly after the Effective Date and continuing during the Term, the parties
shall work together in good faith to define and coordinate direction and targeting of promotional and marketing activities with respect
to the Technology. Each party shall keep the other party reasonably apprised of the other party’s activities with respect to the
Technology under this Agreement. Without limiting the foregoing, NuVasive shall provide Nocimed (via delivery to its ordinary course business
contact (and not as a formal Notice hereunder)) with semi-annual reports no later than July 1st and December 31st
of each calendar year beginning with 2015 during the Term, summarizing its promotional and marketing activities with respect to the Technology
during the relevant period.

 

2.7             
Expenses. All expenses incurred by each party in connection with the performance of its obligations hereunder will be borne
solely by such party.

 

 

 

    	 	2	 

     

    

 

		3.	PAYMENTS

 

3.1             
Compensation to NuVasive. As compensation for NuVasive’s promotional and marketing activities with respect to the Technology
under this Agreement, Nocimed shall pay to NuVasive a commission (the “Commission”) equal to twenty percent
(20%) of aggregate Technology Sales which occur: (a) during the Term hereof; and (b) during the eighteen (18) month period immediately
following the expiration or termination of this Agreement and are received from customer, distributor or other arrangements established
prior to the expiration or termination of this Agreement. For clarity, NuVasive shall receive the Commission on all such Technology Sales,
regardless of whether such installation or sales result (directly or indirectly) from any promotional or marketing activities of NuVasive.

 

3.2              
Initiation Fee. Within sixty (60) days after the expiration of the Initial Term and, if applicable, within sixty (60) days
after the expiration of each Renewal Term, NuVasive shall pay to Nocimed a fee equal to 50% of the Commissions actually received by NuVasive
during the preceding Initial Term or Renewal Term, as the case may be (each a “Initiation Fee”); provided
that (a) the aggregate Initiation Fees payable by NuVasive hereunder shall not exceed $1,000,000, and (b) NuVasive shall not be obligated
to pay any Initiation Fee following the expiration or termination of this Agreement (including with respect to the Initial Term or Renewal
Term, as applicable, that immediately preceded such expiration or termination).

 

3.3             
Payment; Reports. Upon and following the first occurrence of Technology Sales, all amounts owed to NuVasive shall be calculated
and reported for each calendar quarter and shall be paid within 30 days after the end of each calendar quarter. Each payment shall be
accompanied by a report of all Technology Sales, which report shall include a breakdown of all Technology Sales, including allocation
of amounts to installation, ongoing scan revenue or other types of revenue, a description of the method used to calculate the Commission
payable, the exchange rates used, and the gross Technology Sales for such calendar quarter, in each case presented on a country-by-country
basis.

 

3.4             
Arm’s-Length Compensation. The parties hereto agree that the compensation provided herein has been determined in arm’s-length
bargaining and is consistent with fair market value in arm’s-length transactions. Furthermore, the compensation is not and has not
been determined in a manner that takes into account the volume or value of any referrals or business otherwise generated between the parties
for which payment may be made in whole or in part under Medicare or any federal or state health care program or under any other third
party payor program.

 

3.5             
Exchange Rate; Manner and Place of Payment. All payments hereunder shall be payable in U.S. dollars. When conversion of Technology
Sales (for purposes of calculating respective Commissions) from any foreign currency is required, such conversion shall be calculated
using an exchange rate equal to the weighted average of the rates of exchange for the currency of the country from which the royalties
are payable as published by The Wall Street Journal, Eastern U.S. Edition, during the calendar quarter for which a payment is due.
All payments owed under this Agreement shall be made by wire transfer in immediately available funds to the bank and account designated
in writing by NuVasive. All payments hereunder are non-refundable and non-creditable.

 

3.6             
Income Tax Withholding. NuVasive will pay any and all taxes levied on account of any payments made to it under this Agreement.
If any taxes are paid or required to be withheld by Nocimed for the benefit of NuVasive on account of any payments due to NuVasive under
this Agreement, Nocimed will (a) deduct such taxes from the amount of royalties or other payments otherwise due to NuVasive, (b) timely
pay the taxes to the proper taxing authority, and (c) send proof of payment to NuVasive and certify its receipt by the taxing authority
within 30 days following such payment.

 

 

 

    	 	3	 

     

    

 

3.7             
Audits. Nocimed shall keep (and shall cause its affiliates and sublicensees to keep) complete and accurate records pertaining
to the sale, installation and other revenues relating to the Technology in sufficient detail to permit NuVasive to confirm the accuracy
of all payments due hereunder for a period of three (3) years from the end of the calendar year to which such records relate. NuVasive
shall have the right, twice annually, to cause an independent, certified public accountant reasonably acceptable to Nocimed (the “Auditor”)
to audit such records solely to confirm Technology Sales and corresponding Commission payments for a period covering not more than the
preceding three (3) years. Such audits may be exercised during normal business hours, reasonably scheduled for mutual accommodation between
the parties, upon reasonable prior, written notice delivered to Nocimed at least thirty (30) days in advance. The Auditor will execute
a reasonable written confidentiality agreement with Nocimed and will disclose to NuVasive only such information as is reasonably necessary
to provide NuVasive with information regarding any actual or potential discrepancies between amounts reported and actually paid and amounts
payable under this Agreement. The Auditor will send a copy of the report to Nocimed at the same time it is sent to NuVasive. The report
sent to both parties will include the methodology and calculations used to determine the results. Prompt adjustments shall be made by
the parties to reflect the results of such audit. NuVasive shall bear the full cost of such audit unless such audit discloses an underpayment
by Nocimed of more than 5% of the Commission amounts due for any six (6)-month period under this Agreement, in which case, Nocimed shall
bear the full cost of such audit and shall promptly remit to NuVasive the amount of any such underpayment. If such audit discloses an
overpayment by Nocimed, then Nocimed will deduct the amount of such overpayment from amounts otherwise owed to NuVasive under this Agreement.

 

3.8             
Late Payments. In the event that any payment due hereunder is not made when due, such payment shall accrue interest from the
date due at the rate of 1.5% per month; provided, however, that in no event shall such rate exceed the maximum legal annual interest
rate. The payment of such interest shall not limit NuVasive from exercising any other rights it may have as a consequence of the lateness
of any payment.

 

		4.	WARRANTY; DISCLAIMER; LIMITATION OF LIABILITY

 

4.1             
Technology Warranty. Nocimed warrants that, at the time of shipment, all Technology shall (a) meet in all material respects
the specifications provided by Nocimed for such, (b) be free from any defects in manufacture, design or workmanship, and (c) have been
manufactured in accordance with all applicable laws and regulations. In addition to the foregoing warranty, NuVasive shall have the benefit
of any specific warranty expressly included by Nocimed with the Technology.

 

4.2             
Disclaimer of Warranties. Except as expressly set forth in Section 4.1, EACH PARTY EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES
OF ANY KIND, EXPRESS OR IMPLIED.

 

4.3             
Limitation of Liability. EXCEPT FOR PAYMENTS UNDER ARTICLE 3 OR LIABILITY FOR BREACH OF ARTICLE 7, NEITHER PARTY SHALL BE ENTITLED
TO RECOVER FROM THE OTHER PARTY ANY SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES IN CONNECTION WITH THIS AGREEMENT OR ANY LICENSE
GRANTED HEREUNDER; provided, however, that this Section 4.3 shall not be construed to limit either party’s indemnification
obligations under Article 8.

 

		5.	PROPRIETARY RIGHTS

 

5.1             
Ownership. Except for the limited rights expressly granted herein by Nocimed to NuVasive, nothing in this Agreement will (a)
serve to transfer to NuVasive any patent, copyright, trademark or other intellectual property rights in or to the Technology, Nocimed
Marks, or other intellectual property owned or claimed by Nocimed or (b) constitute a license or sub-license to NuVasive of any intellectual
property rights owned or licensed by Nocimed in the Technology. NuVasive acknowledges and agrees that Nocimed has sole right, title and
interest in and to all intellectual property rights covering, claiming or associated with the Technology, the Nocimed Marks and all goodwill
associated therewith.

 

 

 

    	 	4	 

     

    

 

5.2             
Trademark License. Subject to the terms of this Agreement, Nocimed hereby grants to NuVasive a non-exclusive, non-transferable,
and non-assignable authorization to use the Nocimed Marks solely in order to market and promote the Technology as contemplated under this
Agreement. NuVasive acknowledges Nocimed’s exclusive ownership of the Nocimed Marks and all goodwill arising from the use thereof,
and NuVasive agrees not to take any action inconsistent with such ownership and will cooperate, at Nocimed’s request and expense,
in any action (including the conduct of legal proceedings) which Nocimed reasonably deems necessary or desirable to establish or preserve
Nocimed’s exclusive rights in and to the Nocimed Marks and associated goodwill.

 

		6.	TERM AND TERMINATION

 

6.1             
Term. The term of this Agreement will commence on the Effective Date and continue until the second anniversary of the Effective
Date (the “Initial Term”), subject to extension as provided in this Section 6.1 and to earlier termination
in accordance with Section 6.2    (the “Term”).
This Agreement shall automatically renew for successive one year periods (each a “Renewal Term”) at the end
of the Initial Term and each Renewal Term thereafter, unless at least 90 days before the date this Agreement would otherwise expire,
either party notifies the other of its intention not to renew this Agreement.

 

6.2               Termination.

 

(a)    
Material Breach. Each party shall have the right to terminate this Agreement immediately upon written notice to the other party
if such other party is in material breach of this Agreement and has not cured such breach within thirty (30) days (or ten (10) days with
respect to any payment breach) after its receipt of a written notice from the terminating party requesting cure of the breach. Any such
termination shall become effective at the end of such thirty (30)-day (or ten (10)-day with respect to any payment breach) period unless
the breaching party has cured such breach prior to the end of such period.

 

(b)    
Bankruptcy. Each party shall have the right to terminate this Agreement upon sixty (60) days’ prior written notice to
the other party upon or after the filing or institution of bankruptcy, reorganization, liquidation or receivership proceedings by or against
the other party, or upon an assignment of a substantial portion of the other party’s assets for the benefit of creditors; provided,
however, that, in the case of any involuntary bankruptcy proceeding, such right to terminate shall only become effective if the other
party consents to the involuntary bankruptcy or such proceeding is not dismissed within ninety (90) days after the filing thereof.

 

6.3               Effect
of Termination

 

(a)    
Generally. Upon any expiration or termination of this Agreement, all rights and obligations under this Agreement shall automatically
terminate, except as provided in this Section 6.3.

 

 

(b)    
Return of Confidential Information. Within thirty (30) days following any expiration or termination of this Agreement and at
the disclosing party’s request, each party shall return to the other party, at its own expense, all Confidential Information of
the other party.

 

(c)    
Accrued Obligations; Survival. Neither expiration nor any termination of this Agreement shall relieve either party of any obligation
or liability accruing prior to such expiration or termination, including any obligation to make payments hereunder, nor shall expiration
or any termination of this Agreement preclude either party from pursuing all rights and remedies it may have under this Agreement, at
law or in equity, with respect to breach of this Agreement. In addition, the parties’ rights and obligations under Article 3 (other
than Section 3.2), Article 4, this Section 6.3, and Articles 7, 8 and 9 shall survive expiration or any termination of this Agreement.

 

 

 

    	 	5	 

     

    

 

		7.	CONFIDENTIAL INFORMATION.

 

7.1             
Confidential Information. Except to the extent expressly authorized by this Agreement or otherwise agreed in writing by the
parties, the parties agree that, during the Term and continuing for ten (10) years thereafter, each party (in such capacity, the “receiving
party”) shall keep confidential and shall not publish or otherwise disclose and shall not use for any purpose other than
as expressly provided for in this Agreement any Confidential Information of the other party (in such capacity, the “disclosing
party”). The receiving party may use Confidential Information of the other party only to the extent required to accomplish
the purposes of this Agreement. The receiving party will use at least the same standard of care as it uses to protect proprietary or confidential
information of its own (but not less than reasonable care) to ensure that its employees, agents, consultants and other representatives
do not disclose or make any unauthorized use of the Confidential Information of the disclosing party. The receiving party will promptly
notify the disclosing party upon discovery of any unauthorized use or disclosure of the Confidential Information of the disclosing party.

 

7.2             
Exceptions. Confidential Information shall not include any information which the receiving party can demonstrate by competent
evidence: (a) is now, or hereafter becomes, through no act or failure to act on the part of the receiving party, generally known or available;
(b) is known by the receiving party at the time of receiving such information, as evidenced by its records; (c) is hereafter furnished
to the receiving party by a third party, as a matter of right and without restriction on disclosure; or (d) is independently discovered
or developed by the receiving party without the use of or reference to the Confidential Information of the disclosing party.

 

7.3             
Authorized Disclosure. The receiving party may disclose Confidential Information of the disclosing party as expressly permitted
by this Agreement or if and to the extent such disclosure is reasonably necessary in the following instances:

 

 (a)      complying with applicable court orders or governmental regulations; and

 

(b)     disclosure
to affiliates, subcontractors, employees, consultants, agents or other third parties who need to know such information in connection
with performance of such party’s obligations under this Agreement, and disclosure to potential third party investors or acquirers
in connection with due diligence or similar investigations by such third parties or in confidential financing documents with such third
parties, provided, in each case, that any such Affiliate, subcontractor, employee, consultant, agent or third party agrees to be bound
by similar terms of confidentiality and non-use at least equivalent in scope to those set forth in this Article 7. In addition, the receiving
party may disclose Confidential Information of the disclosing party to its attorneys and other advisors under a similar duty of confidentiality,
to the extent such disclosure is reasonably necessary.

 

Notwithstanding the foregoing,
in the event the receiving party is required to make a disclosure of the disclosing party’s Confidential Information pursuant to
Section 7.3(a), it will, except where impracticable, give reasonable advance notice to the disclosing party of such disclosure and use
efforts to secure confidential treatment of such information at least as diligent as the receiving party would use to protect its own
confidential information, but in no event less than reasonable efforts. In any event, the receiving party agrees to take all reasonable
action to avoid disclosure of Confidential Information of the disclosing party.

 

7.4             
Confidentiality of this Agreement and its Terms. Except as otherwise provided in this Article 7, each party agrees not to disclose
to any third party the existence of this Agreement or the terms of this Agreement without the prior, written consent of the other party
hereto, except that each party may disclose the terms of this Agreement that are not otherwise made public as contemplated by Section
7.3.

 

7.5             
Injunctive Relief. Any breach of the restrictions contained in this section is a breach of this Agreement that may cause irreparable
harm to the disclosing party. Any such breach will entitle the receiving party to injunctive relief, in addition to all other legal or
equitable remedies that may be available.

 

 

 

    	 	6	 

     

    

 

		8.	INDEMNIFICATION

 

8.1             
Indemnification by Nocimed. Nocimed shall indemnify, defend and hold harmless NuVasive and its directors, officers, employees
and agents from and against any and all costs, expenses, damages, judgments and liabilities including attorneys’ fees incurred by
or rendered against NuVasive arising from any claim made or suit brought by a third party arising out of (a) a breach by Nocimed of its
representations, warranties or obligations under this Agreement, (b) Nocimed’s gross negligence or willful misconduct, or (c) the
manufacture, use, sale, offer for sale or export of the Technology including, but not limited to, any product liability claims, personal
injury claims, and any claims that the Technology infringes any patent or other intellectual property rights of any third party. NuVasive
shall give Nocimed prompt, written notice of any such claim or suit, and shall permit Nocimed to undertake the defense thereof, at Nocimed’s
expense. NuVasive shall cooperate in such defense to the extent reasonably request by Nocimed, at Nocimed’s expense. In any claim
made or suit brought for which NuVasive seeks indemnification under this Section, NuVasive shall not settle, offer to settle or admit
liability or damages without the prior, written consent of Nocimed.

 

8.2             
Indemnification by NuVasive. NuVasive shall indemnify, defend and hold harmless Nocimed and its directors, officers, employees
and agents from and against any and all costs, expenses, damages, judgments and liabilities including attorneys’ fees incurred
by or rendered against Nocimed arising from any claim made or suit brought by a third party arising out of (a) a breach by NuVasive of
its representations, warranties or obligations under this Agreement, or (b) NuVasive’s gross negligence or willful misconduct.
Nocimed shall give NuVasive prompt written notice of any such claim or suit, and shall permit NuVasive to undertake the defense thereof,
at NuVasive’s expense. Nocimed shall cooperate in such defense to the extent reasonably request by NuVasive, at NuVasive’s
expense. In any claim made or suit brought for which Nocimed seeks indemnification under this Section, Nocimed shall not settle, offer
to settle or admit liability or damages without the prior, written consent of NuVasive.

 

		9.	GENERAL

 

9.1             
Independent Contractor. The parties expressly acknowledge and agree that NuVasive is and at all times will be an independent
contractor in all matters relating to this Agreement. NuVasive is not an agent of Nocimed for any purpose and has no power or authority
to bind or commit Nocimed to any obligation in any way, nor will NuVasive purport to have such power or authority. NuVasive is not and
will not act as an employee of Nocimed for any purpose within the meaning or application of any federal, state, or local laws or regulations
that might impute any obligation or liability to Nocimed by reason of any employment relationship.

 

9.2             
Assignment. Neither party may assign or transfer, by operation of law or otherwise, any of its rights, or delegate any of its
obligations, under this Agreement to any third party without the other party’s prior, written consent; provided, however,
that NuVasive may assign its rights and obligations under this Agreement without Nocimed’s consent to any affiliate of NuVasive
or in connection with the sale of all or substantially all of its business to which this Agreement relates, whether by merger, sale of
stock, sale of assets or otherwise. Any attempted assignment or transfer in violation of the foregoing will be null and void.

 

9.3             
Notices. All notices, consents and approvals under this Agreement must be delivered in writing by courier, by electronic mail,
or by certified or registered mail (postage prepaid and return receipt requested) to the other party at the address set forth beneath
such party’s signature, and will be effective upon receipt or five (5) business days after being deposited in the mail as required
above, whichever occurs sooner. Either party may change its address by giving notice of the new address to the other party.

 

9.4             
Governing Law. This Agreement will be governed by the laws of the State of California, excluding its conflicts of laws principles.

 

9.5             
Waivers. All waivers must be in writing, and any waiver or failure to enforce any provision of this Agreement on one occasion
will not be deemed a waiver of any other provision or of such provision on any other occasion.

 

9.6             
Severability. If any provision of this Agreement is unenforceable, such provision will be changed and interpreted to accomplish
the objectives of such provision to the greatest extent possible under applicable law and the remaining provisions will continue in full
force and effect.

 

 

 

    	 	7	 

     

    

 

9.7             
Construction. The headings of Sections of this Agreement are for convenience and are not to be used in interpreting this Agreement.
As used in this Agreement, the word “including” means “including but not limited to”.

 

9.8             
Counterparts; Execution. This Agreement may be executed (including via electronic signature (.PDF format included)) in counterparts,
each of which will be considered an original, but all of which together will constitute the same instrument.

 

9.9             
Entire Agreement. This Agreement constitutes the entire agreement between the parties regarding the subject hereof and supersedes
all prior or contemporaneous agreements, understandings, and communication, whether written or oral. This Agreement may be amended only
by a written document signed by both parties. The terms on any purchase order or similar document submitted by NuVasive to Nocimed will
have no effect.

 

[Signature Page Follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	8	 

     

    

    	 	9	 

     

    

    	 	10	 

     

    

 

 

EXHIBIT
A

NOCIMED MARKS

 

The following are proprietary Trademarks of Nocimed, LLC
(All Rights Reserved):

 

AutovoxTM

NocimedTM

NociscanTM

Virtual DiscogramTM

SigproTM

MeasproTM

NociviewTM

SynFIDTM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	11

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