Document:

Exhibit 10.40

 

April 15, 2016

 

Dean Tozer

2100 Elderton Court

Brentwood, TN 37027

 

Dear Dean:

 

As we have discussed, your last day of work
with Nuo Therapeutics, Inc. (“Nuo Therapeutics” or the “Company”) was January 8, 2016. This letter agreement
(“Agreement”) sets forth the terms of your separation from the Company. As this is a legal document, you are advised
to consult with an attorney before signing it.

 

1.          Separation
Date. The effective date of your separation from Nuo Therapeutics was February 7, 2016 (“Separation Date”).

 

2.          Allowed
Claim. In exchange for your agreeing to and complying with the terms of this Agreement (including the general release it
contains) and in settlement of all issues and disputes between you and the Company, the Company hereby grants to you, and you shall
be deemed to receive, in that certain bankruptcy proceeding pending in the United States Bankruptcy Court for the District of Delaware
(the “Bankruptcy Court”), which is being administered under the caption In re: Nuo Therapeutics, Inc., Case
No. 16-10192 (MFW) (the “Bankruptcy Case”), an allowed general unsecured claim in the aggregate amount of $182,500
(the “Allowed Claim”) and such Allowed Claim is not subject to offset, recoupment or reduction, and shall be treated
as an Allowed Class 4 Claim in accordance with the terms of the Company’s First Amended Plan of Reorganization of the
Debtor, which was filed in the Bankruptcy Case at Docket No. 247, and as same may be amended, modified, or supplemented, from
time to time. In the event that there are not sufficient funds to pay the claim in full, $12,475.00 shall be treated as a priority
claim under 11 U.S.C. § 507(a)(4).

 

3.          Benefits
Continuation. Your medical, dental, and vision benefits ceased on January 31, 2016, subject to your right to elect COBRA.
All other benefits incident to your employment ceased as of January 31, 2016. You received notice of your COBRA rights by separate
letter.

 

4.          Indemnification
and Potential Consulting. Consistent with the Company’s bylaws, the Company will continue to indemnify you with respect
to any actions taken or omissions made by you serving as an officer or director of the Company. In the Bankruptcy Case, the Company
will seek to extinguish any potential derivative claims against you to the same extent as such claims are extinguished against
active officers and directors of the Company. The Company and you hereby ratify and confirm that they entered into an Indemnification
Agreement dated November 11, 2014 and that in the event that there is any conflict between the indemnification provisions in this
paragraph and said Indemnification Agreement, the Indemnification Agreement shall govern. Notwithstanding the foregoing, said Indemnification
Agreement will not be assumed or assumed and assigned under the Plan and therefore, will be deemed rejected in accordance with
Section 8.2 of the Plan and any claim arising from such rejection shall receive treatment under the Plan as a Class 4 General Unsecured
Claim.

 

     

     

    

  

Dean Tozer

April 15, 2016

Page 2

 

5.          Acknowledgement
of Equity. The Company and you recognize and acknowledge that you own 890,200 vested options under the Company’s
stock option plan. You further acknowledge that the foregoing 890,200 vested options are subject to cancellation and discharge
under the terms of the Plan.

 

6.          Acknowledgement
of Receipt of all Remuneration and Settlement of Issues and Disputes. Except as set forth in paragraphs 1 through 5 above,
you agree and acknowledge that (i) you are not entitled to receive any payments, commissions, bonuses, severance, benefits, equity,
options, or other remuneration of any kind and (ii) you have received the Allowed Claim in settlement of all issues and disputes
between you and the Company.

 

7.          General
Release. In exchange for the payment and other agreements of Company provided pursuant to this Agreement, you, on behalf
of yourself and your heirs, executors, administrators and assigns, hereby irrevocably, fully, and unconditionally release and forever
discharge jointly and severally Nuo Therapeutics and any and all of its current and former direct and indirect affiliates, divisions,
partners, its employment benefit plans and trustees, fiduciaries and administrators of these plans and any of the foregoing parties’
present or past employees, officers, directors, stockholders, members, joint ventures, agents and contractors and each of their
predecessors, successors and assigns (collectively “Released Parties”), from all actions, claims, obligations, liabilities,
demands and causes of action, known or unknown, fixed or contingent, in law or equity, which you ever had or now have for, upon
or by reason of any matter, cause or thing occurring up to and including the date you sign this Agreement, including, but not limited
to any claim under the Age Discrimination in Employment Act (“ADEA”), the Americans with Disabilities Act (“ADA”),
the Employee Retirement Income Security Act of 1974 (“ERISA”), the Fair Credit Reporting Act (“FCRA”),
the Family and Medical Leave Act (“FMLA”), the Occupational Safety and Health Act of 1970 (“OSHA”), the
Rehabilitation Act of 1973, the Sarbanes Oxley Act of 2002, Title VII of the Civil Rights Act of 1964, the Workers Adjustment and
Retraining Notification Act (“WARN”), the District of Columbia False Claims Act, the District of Columbia Family and
Medical Leave Act, the District of Columbia Human Rights Act, the Maryland Equal Pay Law, the Maryland Fair Employment Practices
Act, the Maryland Parental Leave Law, the Tennessee Disability Act, the Tennessee Human Rights Act, the Tennessee Whistleblower
Law, and any and all federal, state and local laws, rules, regulations or common law relating to discrimination, retaliation, whistleblowing,
defamation, misrepresentation, fraud, tortious interference, wrongful discharge, breach of an express or implied contract, breach
of a covenant of good faith and fair dealing, negligent or intentional infliction of emotional distress; and any and all claims
you may have against any of the Released Parties.

 

     

     

    

  

Dean Tozer

April 15, 2016

Page 3

 

8.          Cooperation.
You agree that you will reasonably cooperate with Nuo Therapeutics and its officers and employees to provide transition support
in connection with any matter on which your cooperation may reasonably be requested or of which you had knowledge. You agree that,
in the event that you are subpoenaed by any person or entity (including but not limited to, any government agency) to give testimony
(in a deposition, court proceeding or otherwise) which in any way relates to your employment with Nuo Therapeutics, you will give
prompt notice of such request (unless prohibited by law) to the Chief Financial Officer of Nuo Therapeutics and will make no disclosure
until Nuo Therapeutics has had a reasonable opportunity to contest the right of the requesting party or entity to such disclosure.
You further agree that, in the event that you are contacted by any person or entity regarding information concerning Nuo Therapeutics
or one of its affiliates, you will give prompt notice of such request to the Chief Financial Officer of Nuo Therapeutics, and will
make no disclosure until Nuo Therapeutics has had a reasonable opportunity to respond to your notification.

 

9.          Restrictive
Covenants. You agree that, beginning on the date hereof, and continuing only during Nuo Therapeutics’ Bankruptcy
Case and only with regards to Nuo Therapeutics’ existing business but ending no later than June 30, 2016, you will not directly
or indirectly: (a) organize, own, manage, operate, join, control, finance, or participate in any business, enterprise or entity
engaged anywhere in the world in competition with Nuo Therapeutics with respect to any business or activity that is substantially
related to the development, marketing, distribution, sale, or concerned with autologous point of care platelet separation technology;
(b) hire any person employed by or engaged to provide services relating to the business of Nuo Therapeutics, or employed or
so engaged by Nuo Therapeutics within one (1) year prior to the Separation Date, or solicit, induce or attempt to induce any such
person to leave the employment of Nuo Therapeutics; or (c) solicit or attempt to solicit any business from any of Nuo Therapeutics'
customers, customer prospects, or vendors with whom you had contact with during your employment. Additionally, you acknowledge
and agree that any writing, invention, design, system, process, development or discovery, conceived, developed, created or made
by you, alone or with others, within one (1) year following the Separation Date is the sole and exclusive property of Nuo Therapeutics
if it (i) relates to Nuo Therapeutics’ autologous point of care platelet separation technology and/or (ii) is based
upon or related to information or processes learned or performed during your employment, whether or not it can or may be patented,
registered, or copyrighted. For the avoidance of doubt, all non-compete covenants will be fully and completely released upon the
conclusion of Nuo Therapeutics’ Bankruptcy Case but no later than June 30, 2016.

 

10.         Return
of Property. You hereby confirm and acknowledge that you have returned to the Company any and all equipment, security badges,
keys, credit cards, passwords, files, confidential information, or other property of the Company and its subsidiaries over which
you ever had possession, custody, or control in connection with your employment. You also affirm that you are in possession of
all of your property that you had at the Company’s premises and that the Company is not in possession of any of your property.

 

     

     

    

  

Dean Tozer

April 15, 2016

Page 4

 

11.         Confidentiality
of this Agreement. You agree that the terms and conditions of this Agreement are confidential and that you shall not disclose
the existence of this Agreement or any of its terms to any third parties, other than to your spouse, attorney, financial advisor/accountant,
or as required by law or as may be necessary to enforce this Agreement. You further agree that you will not directly or indirectly
disclose to anyone outside Nuo Therapeutics, except as may be required by law, or, with Nuo Therapeutics’ prior written consent,
any confidential or proprietary information concerning Nuo Therapeutics, including but not limited to confidential or proprietary
information, processes, or practices.

 

12.         Choice
of Law and Consent to Jurisdiction. This Agreement shall be construed and enforced in accordance with the laws of the State
of Maryland without regard to its conflict of laws, provisions or principles. You irrevocably consent to the exclusive personal
jurisdiction of the appropriate state or federal court for Montgomery County, Maryland and waive any objection you may have based
upon lack of personal jurisdiction, improper venue, or forum non conveniens.

 

13.         Entire
Agreement. This Agreement sets forth the entire agreement between the parties hereto, and fully supersedes any prior agreements
or understandings regarding your employment with the Company and may not be modified or amended without the prior written consent
of both parties hereto. You acknowledge that you have not relied on any representations, promises, or agreements of any kind made
to you, except for those set forth in this Agreement.

 

14.         Meaning
of Signing This Agreement. By signing this Agreement, you expressly acknowledge and agree that:

 

(a)          You
have carefully read this Agreement and fully understand what it means;

 

(b)          You
have been advised in writing to discuss this Agreement with an attorney before signing it;

 

(c)          You
have been given at least forty-five (45) calendar days to consider this Agreement;

 

(d)          You
have been given a list of the job titles and ages of all individuals eligible for this severance program and the job titles and
ages of all individuals in the Company who are not eligible for this program (see Appendix A);

 

(e)          You
have agreed to this Agreement knowingly and voluntarily; you were not subject to any undue influence or duress; and you are competent
to execute this document;

 

(f)          You
may revoke your acceptance of this Agreement within seven (7) days after you sign it by sending written Notice of Revocation by
e-mail to Jeffery Baumel (jeffery.baumel@dentons.com); and

 

(g)          This
Agreement and the terms thereof, if same has not been revoked pursuant to paragraph 14(f) above, become effective and enforceable
upon (a) the approval of this Agreement by the Bankruptcy Court and (b) the occurrence of the Effective Date (as that term is defined
in the Plan) of that certain First Amended Plan of Reorganization of the Debtor filed in the Bankruptcy Case, as same may
be amended, modified, or supplemented from time to time (the “Plan”).

 

     

     

    

  

Dean Tozer

April 15, 2016

Page 5

 

15.         Return
of Signed Agreement. You may accept this Agreement by signing the Agreement and returning it by regular mail to Richard
DeMaio, Nuo Therapeutics, Inc., 207A Perry Parkway, Suite 1, Gaithersburg, MD 20877 or by e-mail to Richard DeMaio (rdemaio@nuot.com).
In the event you do not accept this Agreement as set forth above, this Agreement, including but not limited to the obligation of
the Company to provide the allowed claim described in Paragraph 2 above, shall be deemed automatically null and void.

 

If you are agreeable to the foregoing, please
indicate your acceptance of this Agreement by signing and dating below. If you have any questions, please call me at (832) 236-9060.

 

	 	 	 	Nuo Therapeutics, Inc.
	 	 	 	 
	 	 	 	/s/ David Jorden
	 	 	 	David Jorden
	 	 	 	Acting CEO/CFO
	 	 	 	 
	Accepted and Agreed:	 	 	 

 

	/s/ Dean Tozer	 	Dated: April 15, 2016
	Dean TozerExhibit 10.41

 

EXCLUSIVE LICENSE AND DISTRIBUTION
AGREEMENT

 

This EXCLUSIVE
LICENSE AND
DISTRIBUTION AGREEMENT
(“Agreement”) is made and entered into as of May 5, 2016 (“Effective Date”), between NUO
THERAPEUTICS, INC., a Delaware corporation, with principal office at 207A Perry
Parkway, Suite 1, Gaithersburg, MD 20877 (“Nuo”), and BOYALIFE HONG
KONG LTD., a China corporation, with its
principal office at 800 Jiefang Road East, 14th Floor, Wuxi, China 214002 (“Boyalife”). Each of Nuo and
Boyalife is hereinafter referred to as a “Party” and collectively the “Parties.”

 

RECITALS

 

A.           Nuo
is the owner of certain intellectual property rights pursuant to which it has commercialized a point of care cell separation device
which produces a platelet based therapeutic formulation for use on chronic, hard to heal wounds and ulcers offered as the Aurix
System.

 

B.           Boyalife
has capability of conducting clinical studies of medical devices and has facilities and experience in the distribution, sale and
service of medical devices in the Territory (defined below), and desires to become the exclusive licensee of certain intellectual
property rights of Nuo under which it will distribute the Products (defined below) in the Field of Use (defined below), pursuant
to the terms of this Agreement.

 

NOW,
THEREFORE, in consideration of the foregoing, and for other good and valuable consideration,
the receipt and sufficiency of which are acknowledged, the Parties intending to be legally bound agree as follows:

 

AGREEMENT

 

1.          DEFINITIONS.
When used herein, capitalized terms shall have the following meanings:

 

“Affiliate”
means, in respect of any Party, any other Person which, but only for so long as such other Person, directly or indirectly, controls,
is controlled by, or is under common control with, such Party. The term “control” means the possession, directly or
indirectly, of the power to direct or cause the direction of the management or policies of a Person, through the ownership of voting
securities or other equity interests, and the terms “controlled” and “common control” have correlative
meanings.

 

“Change of Control”
means: (i) the direct or indirect sale or other disposition (in one or more related transactions to one or more Persons) of all
or substantially all of the assets of a Person, or (ii) the direct or indirect transfer of 50% or more of the outstanding voting
interest of a Person, whether in a single transaction or series of related transactions.

 

“FDA” means the United States
Food and Drug Administration and any successor entity.

 

     

     

    

 

“Field of Use”
means the use of the Product in the Territory for all regenerative medicine applications, including but not limited to wound care
and topical dermatology applications in human and veterinary medicine.

 

“Gross Sales”
means the total sales amount including sales tax invoiced by Boyalife from the commercialization and sale of the Products to wholesalers,
hospitals or doctors.

 

“Intellectual Property”
means, collectively, Patents, Trade Secrets, Copyrights, Trademarks, Know How, moral rights, trade names, rights in trade dress
and all other intellectual property rights and proprietary rights, whether arising under the laws of the United States or any other
state, country or jurisdiction in the world, including all rights or causes of action for infringement or misappropriation of any
of the foregoing. For purposes of this Agreement: (a) “Patents”, “Know How” and “Trademark”
shall have the meaning set forth below; (b) “Trade Secrets” shall mean all right, title and interest in all trade secrets
and trade secret rights arising under common law, state law, federal law or laws of foreign countries; and (c) “Copyrights”
shall mean all copyrights, and all other literary property and authorship rights, and all right, title, and interest in all copyrights,
copyright registrations, certificates of copyright and copyrighted interests throughout the world.

 

“Know How”
means any and all current and future know-how, technical information, technical knowledge, unpatentable inventions, manufacturing
procedures, methods, trade secrets, processes, formulas, documentation and other tangible or intangible property or rights relating
to the Wound Dressing or Products, whether or not capable of precise separate description but which alone, or when accumulated,
gives to the Person acquiring it an ability to study, test, formulate, manufacture, produce or market something which it otherwise
would not have known to study, test, formulate, manufacture, produce or market in the same or similar way.

 

“Marketing Authorization”
or “MA” means the authorization by CFDA to manufacture / import, promote and sell the Product in China.

 

“CFDA” means
the China Food and Drug Administration, which is an agency to review application of Marketing Authorization of pharmaceuticals
and medical devices in China.

 

“New Devices”
means the new device covered by Nuo Patent-2 and the new centrifuge for the new device which Nuo is developing as of the Effective
Date.

 

“NHI” means
national health insurance system in China, granted by the CFDA upon submission after Marketing Authorization of the Product is
granted.

 

“NHI Pricing Event”
means the event when the NHI reimbursement price for the Product in the Territory is achieved.

 

“Nuo Clinical Data”
mean any and all clinical and other data Nuo used for the FDA 510(k) clearance of Aurix System
or former AutoloGel System, or for license or approval by other governmental authorities.

 

“Nuo Know How”
means the Know How Nuo owns and obtains during the term of this Agreement relating to Wound Dressing, Product and improvement thereto,
including, but not limited to, Nuo Clinical Data, treatment method of patient using Wound Dressing, and PRP separation technology
(from patient’s blood) embodied in the Centrifuge.

 

    	 	2	 

     

    

 

“Nuo Patent”
means the Nuo Patent-1 and Nuo Patent-2 described in Exhibit 1 attached hereto and any Patent relating to the improvement of the
Wound Dressing or the Product in the Territory which Nuo files or obtains rights from a third party during the term of this Agreement.

 

“Nuo Technology” means Nuo Patent and Nuo
Know-How.

 

“Nuo Trademarks”
means any and all Trademarks, trade names, service marks, service names, logos and similar proprietary rights whether now or in
the future owned, controlled or licensed by Nuo and currently used or to be used in connection with the Product. As of the Effective
Date Nuo Trademarks are described in Exhibit 2 attached hereto.

 

“Patent”
means any patent application or patent, including all of the following kinds and their equivalents outside the United States (as
applicable): provisional, converted provisional (or regular), divisional, continuation, continuation-in-part, and substitution
applications; and regular utility, re-issue, re-examination, renewal and extended patents (including Supplementary Protection Certificates),
as well as all right, title and interest in all letters patent or equivalent rights and applications for letters patent or rights,
industrial and utility models, industrial designs, petty patents, patents of importation, patents of addition, certificates of
invention and other government issued or granted indicia of invention ownership, including any reissue, extension, division, continuation
or continuation-in-part applications throughout the world.

 

“Person”
means any natural person or any corporation, partnership, limited liability company, business association, joint venture or other
entity.

 

“Point of Shipment” shall have
the meaning given in the INCOTERMS 2010.

 

“Product”
means the combination of devices to produce a Wound Dressing from the patient’s blood. As of the Effective Date, the Product
means Aurix System (formerly AutoloGel System) which consists of Centrifuge, Wound Dressing Kit, and Reagent Kit described in Exhibit
3 attached hereto.

 

“Territory” means greater China consisting
of China, Hong Kong, Taiwan and Macau.

 

“Trademarks”
shall mean all right, title and interest in all trademark, service mark, trade name and trade dress rights arising under the common
law, state law, federal laws and laws of foreign countries, and all right, title, and interest in all trademark, service mark,
trade name and trade dress applications and registrations interests throughout the world.

 

“Transfer Price”
means the supply price of the Product from Nuo to Boyalife, which is Nuo’s manufacturing or procurement cost of Centrifuge
and each Kit plus 5% of such cost for Nuo’s direct overhead cost as described in exhibit 4 attached hereto.

 

“Transition Event”
means the date when the Product is approved for marketing by CFDA.

 

“Wound Dressing”
means the mixture of platelet rich plasma (PRP) derived from patient’s own blood and reagents which is covered by Nuo Patent-1.

 

2.          GRANT
OF LICENSE

 

(a)          Exclusive
License of Nuo Technology. Nuo grants to Boyalife a non-Distribution Fee bearing, nontransferable, exclusive license, with limited
right to sublicense, to use Nuo Technology for the development, import, use, marketing, sale, and distribution of the Product in
the Field of Use in the Territory.

 

    	 	3	 

     

    

 

 

(b)          Distribution
Right. Boyalife shall have an exclusive right, in the Field of Use in the Territory, to import, use for development, promote, market,
sell and distribute the Product which Nuo manufactures or has contractor manufacture for Nuo and supply to Boyalife. Nuo shall
not export, promote, or supply the Product to any third party in the Territory.

 

(c)          Procurement
of devices. Boyalife reserves the right to manufacture or purchase certain non-proprietary devices from a third party with Nuo’s
approval, such approval shall not be unreasonably withheld or delayed. In such case, Boyalife shall assemble such devices with
other devices supplied by Nuo to make a Product in the Territory. For avoidance of doubt, in such case the sales amount of Boyalife’s
assembled Product as a whole shall be the base of Net Sales for Distribution Fee payment set forth in Section 4 (c) of this Agreement.

 

(d)          Manufacturing
Right. At any time after the Transition Event, upon written notice to Nuo, Nuo shall grant to Boyalife an exclusive license, with
limited right to sublicense, to use Nuo Technology for manufacturing, or having third-party manufacture devices which are covered
by Nuo Patent or embodied by Nuo Know How, such as the New Devices and Centrifuge of current and future version, for the Territory.
Upon request of Boyalife, Nuo shall provide Boyalife with reasonably sufficient information for Boyalife to manufacture or have
manufactured such devices. For avoidance of doubt, in such case Boyalife shall assemble Product for the Territory, and sales amount
of such Boyalife’s assembled Product as a whole shall be the base of Net Sale for Distribution Fee payment set forth in Section
4 (c) of this Agreement.

 

(e)          Procurement
by Boyalife. With approval from Nuo, Boyalife may procure all components of the Product from Nuo’s suppliers and contract
manufacturers directly at the established Nuo contract prices. For avoidance of doubt, in such case the sales amount of Boyalife’s
assembled Product as a whole shall be the base of Net Sales for Distribution Fee payment set forth in Section 4 (c) of this Agreement.

 

(f)          Nuo
Trademark. Nuo grants to Boyalife a Distribution Fee free, nontransferable, exclusive license, with the right to sublicense, to
use Nuo Trademark for the Product which Boyalife import, develop, use, market, sell and distribute in the Field of Use in the Territory.
Nuo shall register the Nuo Trademark in the Territory.

 

(g)          Trademark
Option. Boyalife reserves the right to use a trademark other than or in association with Nuo Trademarks for the Product in the
Territory.

 

(h)          Right
of First Refusal in other Asia Pacific Countries Excluding Japan and India. Nuo grants Boyalife a Right of First Refusal (“ROFR”)
of its Product in Mongolia, North Korea, South Korea, Brunei, Myanmar (Burma), Cambodia, East Timor, Indonesia, Laos, Malaysia,
Philippines, Singapore, Thailand, Vietnam, Pakistan, or Bangladesh in exchange for a payment of no greater than $250,000 in aggregate.
The parties agree to negotiate in good faith the portion of the $250,000 payment applicable to individual countries in the event
Boyalife exercises the ROFR on selected countries only. Boyalife’s exercise of a ROFR for any individual country shall thereafter
include such country in the Territory.

 

(i)          Improvement
by Nuo. In the event Nuo has filed a new patent application in any country relating to Wound Dressing or Product, Nuo shall promptly
inform Boyalife of the reasonable details of such patent application. For avoidance of doubt, such patent application shall be
included in the Nuo Patent.

 

    	 	4	 

     

    

 

(j)          Improvement
by Boyalife. In the event Boyalife has filed a new patent application for a new invention relating to Wound Dressing, Product or
Nuo Technology, Boyalife shall inform Nuo of the reasonable details of such invention promptly after Boyalife has filed the patent
application for such invention in the Territory or in the U.S. In such event Boyalife shall grant to Nuo a Distribution Fee free,
nonexclusive license to use such patent application outside the Territory during the term of this Agreement. Upon request of Nuo
at Nuo’s expense for filing, prosecution and maintenance, Boyalife shall file such patent application in countries (other
than Territory) designated by Nuo.

 

(k)          Modification
of Component by Nuo. In the event Nuo intends to modify or change any component (device) of the Product within the Field of Use,
Nuo shall inform Boyalife of such intent reasonably prior to the implementation of such modification or change. In the event Nuo
decides to commercialize the New Devices within the Field of Use in any country outside of Territory, Nuo shall inform Boyalife
of such decision. For avoidance of doubt, the modified/changed device or the New Devices shall be included in the Product and Boyalife
has the exclusive right to import, use for development, promote, market, sell and distribute such Product in the Territory and
within the Field of Use.

 

(l)          Modification
of Component by Boyalife. Boyalife reserves the right to modify or change any component (device) of the Product in order to meet
the market needs in the Territory. In the event Boyalife intends to implement such modification or change within the Field of Use,
Boyalife shall inform Nuo of such intent reasonably prior to the implementation of such modification or change. For avoidance of
doubt, the modified/changed device shall be included in the Product and sales amount of such Boyalife’s assembled Product
as a whole shall be the base of Net Sale for Distribution Fee payment set forth in Section 4 (c) of this Agreement.

 

3.          DEVELOPMENT.

 

(a)          CFDA
Consultation. Upon execution of this Agreement Boyalife shall consult with CFDA for a Marketing Authorization of the Product in
the Territory. Boyalife shall conduct clinical studies in accordance with guidance of CFDA.

 

(b)          Nuo
Information and Data. Upon Boyalife’s reasonable request, Nuo shall provide Boyalife with Nuo Clinical Data, Product information,
or other information or data Nuo has or would be reasonably expected to have which are required for MA application by Boyalife
in the Territory.

 

(c)          Clinical
Studies. Boyalife shall conduct required clinical and other studies for the Marketing Authorization at its own expenses and responsibility.
Upon request of Boyalife, Nuo shall supply Boyalife with the Product or specific devices in the Product at the Transfer Price.

 

(d)          Safety
Reporting. Prior to clinical studies, the parties shall enter into a quality agreement that includes safety reporting for clinical
studies.

 

(e)          Marketing
Authorization. Upon completion of the required studies, and without unreasonable delay in the Territory, Boyalife shall submit
the MA application for the Product with CFDA, and upon approval, Boyalife shall be the holder of the Marketing Authorization of
the Product.

 

    	 	5	 

     

    

 

(f)          Inspection.
In the event CFDA or other agency of CFDA requires inspections of Nuo’s and/or its suppliers’ facilities (of the devices
and Product), Nuo will reasonably cooperate with such inspections and use commercially reasonable efforts to cause its suppliers
of the devices/Product to cooperate with such inspections.

 

(g)          NHI
Pricing. Promptly after the Marketing Authorization for the Product is granted, Boyalife shall submit, at its own expense, NHI
reimbursement for the Product with CFDA.

 

(h)          No
Warranty. Boyalife shall make commercially reasonable effort to conduct required studies and seek the Marketing Authorization and
reimbursement for the Product, provided that Boyalife shall not ensure the achievement of such approval or grant. Nuo acknowledges
that such approval or grant is at the discretion of CFDA.

 

(i)          Restriction.
The Parties acknowledge that Boyalife is strictly prohibited by the relevant laws and regulations in the Territory to promote,
advertise, or sell the Product in the Territory until after the Transition Event. Boyalife shall start marketing and sale of the
Product in the Territory only after the Transition Event.

 

(j)          Quality
Agreement. Prior to the Transition Event, the Parties shall enter into a separate quality agreement that (a) defines Boyalife’s
rights to audit manufacturing sites of each component (device) of the Product in compliance with the requirements of relevant (QMS)
regulations in the Territory, (b) defines specifications, shelf life of each component (device) of the Product, and remedies for
non-conforming Product, (c) defines labeling and package insert of the Product, and (d) conforms to the quality plan and systems
of Nuo.

 

(k)          Safety
Agreement. Prior to the Transition Event, the Parties shall enter into a separate safety agreement that defines the safety report,
safety database, product recall, post marketing survey, and so on in compliance with the requirement of relevant laws and regulations
in Japan and the United States.

 

(l)          Supply
and Distribution Agreement. Prior to the Transition Event, the Parties shall enter into a supply and distribution agreement with
respect to then current Product available at Nuo, which shall include the provisions of Section 5. (DISTRIBUTION) and Section 6.
(SUPPLY OF PRODUCT) of this Agreement and minimum performance requirements.

 

4.          CONSIDERATION.

 

In consideration of
the right and license granted to Boyalife under this Agreement, Boyalife shall pay to Nuo the following:

 

(a)          Upfront
Payment. Boyalife shall not be required to make an upfront payment to Nuo.

 

(b)          Milestone
Payment. Upon occurrence of the approval of the Product by CFDA, Boyalife shall pay to Nuo a non-refundable payment of Five Hundred
Thousand United States dollars ($500,000) within ninety (90) days of such approval but no earlier than December 31, 2018, by wire
transfer of immediately available funds to the account specified below or to such other account as may be specified by Nuo in writing
within thirty (30) days after the approval by CFDA.

 

    	 	6	 

     

    

 

	Company Name:	NUO Therapeutics, Inc.
	Company Address:	207A Perry Parkway, Suite 1
		Gaithersburg, MD 20877 
		USA
	 	 
	Bank Name:	Capital One Bank (USA), N.A.
	Bank Address:	1680 Capital One Drive
		McLean, VA 22102
	 	 
	Swift Code:	HIBKUS44
	 	 
	Routing Number:	255071981
	 	 
	Account Number:	2554300542

 

(c)          Distribution
Fee. Boyalife shall pay to Nuo a distribution fee per Wound Dressing Kit and Reagent Kit (“Disposables”) of USD $40
(“Distribution Fee”). The Parties hereby agree that they will discuss in good faith the appropriate Distribution Fee
in the event the pricing of the Disposables exceeds the current general pricing in the Territory of USD $140 for single use processing
sets.

 

(i)          Report.
No later than thirty (30) days after the end of each calendar quarter, Boyalife shall deliver to Nuo a written report detailing:
(i) the number of Product sold, (ii) Gross Sales and (iii) the resulting Distribution Fee owed to Nuo.

 

(ii)         Payment.
The Distribution Fee owed to Nuo shall be paid by Boyalife to Nuo by wire transfer of immediately available funds in U.S. dollars
to the account specified above or to such other account as may be specified by Nuo or its designee in writing. The Distribution
Fee shall be paid to such account within forty–five (45) days after the end of each calendar quarter.

 

(iii)        Audit.
Nuo shall have the right to audit the records of Boyalife relating to Gross Sales at any time during the normal business hours
upon reasonable advance written notice. The audit will be performed no more than once a fiscal year of Boyalife by an independent
reputable accounting firm at Nuo’s sole expense. If the accounting firm determines that Nuo was not paid the full Distribution
Fee owed, Nuo shall have the accounting firm submit the audit findings to Boyalife, and Boyalife shall pay the amount of any shortfall
within thirty (30) business days after receipt of the audit findings. If Boyalife fails to pay such shortfall within such five
(5) business day cure period, then interest shall accrue on such shortfall (from the date it was due) at fifteen percent (15%)
per annum. Boyalife shall have a reasonable period of time to review such audit findings and shall be provided an opportunity to
rebut such audit findings, if so chosen. If parties cannot reach a settlement regarding the audit findings, parties shall refer
such dispute to binding arbitration.

 

(d)          Withhold
Tax. If applicable laws and regulations require withholding of income or other taxes imposed upon any payments made by Boyalife
to Nuo under this Agreement, Boyalife shall make such withholding payments as may be required and shall subtract such withholding
payments from such payments. Boyalife shall submit appropriate proof of payment of the withholding taxes to Nuo within a reasonable
period of time. Boyalife shall render Nuo reasonable assistance in order to allow Nuo to obtain the benefit of any present or future
treaty against double taxation which may apply to such payments.

 

    	 	7	 

     

    

 

5.          DISTRIBUTION.

 

(a)          Distribution.
On and after the Transition Event, Boyalife shall use best efforts to market, distribute and sell the Product, consistent with
the terms and conditions of this Agreement. Additionally, Boyalife shall provide post-sale customer service for the Products in
the Territory under the terms set forth in this Agreement.

 

(b)          Appointment
of Sub-Distributors. The Parties agree that Boyalife’s rights and obligations under this Agreement will, subject to terms
and limitations contained in this Agreement, be discharged and administered directly by Boyalife and may include the use of contractors,
subcontractors, and agents, in a manner substantially similar to the method that Boyalife currently utilizes to operate its existing
businesses. Boyalife shall remain responsible to Nuo for any and all acts and omissions of such sub-distributors and agents.

 

(c)          Promotion
of Product; Advertising.

 

(i)          Promotion.
Boyalife shall use its best efforts to develop a customer base and market, sell and distribute the Product within the Territory.
Boyalife shall advertise and otherwise promote the Product in a commercially reasonable manner and furnish appropriate Product
information and promotional materials to its customers in a fashion similar to that used with Boyalife’s other products.

 

(ii)         Translation
of Materials. Boyalife shall bear the cost and responsibility to create and maintain all literature required, in all languages
required, in order to market, sell, distribute and service the Product in the Territory, including all labeling, package inserts,
instruction manuals, registrations, sales literature and other promotional materials for the Product. All translated materials
shall be approved by Nuo prior to release and distribution. Boyalife shall attach a written statement with the translated materials
submitted to Nuo for approval certifying that the translation does not misrepresent the claims of the original English-language
material and is an accurate translation.

 

(iii)        Recognition
of Patents and Patents Pending. Subject to rules, regulations and codes controlling the labeling and packaging of the Products,
Boyalife may at its discretion include on each Product packaging a printed statement identifying the patents under which the product
is produced and distributed. This notice may be modified by mutual consent of the Parties as reasonably necessary to comply with
applicable patent marking provisions of the U.S. patent laws.

 

(d)          Forecasting
of Products. Boyalife shall annually provide to Nuo a rolling forecast of Boyalife’s requirements for the Product for the
twelve (12) month period commencing that quarter. The requirements for the first quarter period of each forecast shall constitute
a firm and binding Purchase Order for Product, and shall be delivered to Boyalife in full prior to the end of the same quarter.
The remaining rolling quarterly forecast shall constitute non-binding estimates of Product and requirements for the period described;
provided that, the second (2nd) quarter in any forecast shall be varied by no more than 20% when reported in
the subsequent binding forecast, unless agreed to by Nuo. The fourth (4th) quarter of each forecast are non-binding
and may be modified by Boyalife at any time in its sole discretion. Nuo will not guarantee fulfillment of orders constituting an
aggregate increase in firm order quantities over forecasted quantities for a given quarter in excess of 20%. In addition to the
forecast, Boyalife is encouraged to provide Nuo at any time with advance non-binding notice of expected significant changes to
the existing quarterly forecast for purposes of production planning.

 

(e)          Regular
Communication. The Parties will meet telephonically or face-to-face no less than quarterly to review, among other things, sales
performance, progress on sales metrics, on hand inventory levels, customer usage information, and make such adjustments and changes
as are agreed to by the Parties.

 

    	 	8	 

     

    

 

(f)          Reservation
of Title. Except as expressly provided in this Agreement, Nuo reserves to itself and retains all right, title and interest in and
to all Intellectual Property related to the Product and to any modifications, enhancements, improvements and upgrades thereto implemented
by Nuo. Boyalife may not duplicate, translate, decompile, reverse engineer or adapt any Product or component parts thereof without
Nuo’s prior written consent.

 

(g)          No
Other Rights. Except as expressly provided in this Agreement, no right, title, or interest is granted by Nuo to Boyalife hereunder.
Nuo may distribute any products, other than the Product, which shall not compete with the Product, within the Territory, either
directly or indirectly through distributors, and no right, title or interest is granted by Nuo to Boyalife relating to such products.

 

(h)          Other
Information Reporting. Boyalife shall provide to Nuo, at Boyalife’s expense and in English, each and every Product-related
quality and/or performance complaint reasonably after receipt of such complaint by customer. Boyalife shall use a complaint reporting
form agreed upon by the Parties for reporting the information to Nuo.

 

(i)          Post-Sale
Service, Technical Assistance, and Support. Boyalife shall provide to its customers post-sale service, technical assistance and
support for Products sold by Boyalife in the Territory, at Boyalife’s sole cost and expense (other than warranty claims in
accordance with this Agreement).

 

6.          SUPPLY
OF PRODUCT.

 

(a)          Transfer
Price. On and after the Transition Event, Boyalife shall purchase, and Nuo shall supply all Products currently in production at
the Transfer Price.

 

(b)          Trade
Term. The Transfer Price for Product purchased by Boyalife hereunder shall be Free Carrier (“FCA”), Nuo’s Point
of Shipment or other trade term the Parties agree.

 

(c)          Certain
Taxes. The Parties acknowledge that the Transfer Prices of Product do not include any sales, excise, use, value added or other
government taxes or duties that may be applicable to the export, import or purchase of the Product, including all income and income-based
taxes imposed on Nuo under applicable laws in Territory, which taxes shall be the sole responsibility of Boyalife and Boyalife
agrees that it will bear all such taxes and duties.

 

(d)          Order
and Acceptance. All orders for Product shall be by means of a written purchase order which shall be submitted to Nuo at Nuo’s
address for notice purposes set forth in Section 12(e), and shall request a delivery date. Orders may be placed by telephone, facsimile
transmission or, upon the Parties’ agreement, by e-mail; provided, however, that a signed confirming purchase
order is received by Nuo no later than ten (10) business days after such order. Nuo shall notify Boyalife in writing within a reasonable
period of time from submission of the purchase order of any rejected order and the reason(s) for such rejection.

 

    	 	9	 

     

    

 

(e)          Invoicing;
Payment. Nuo shall submit an invoice to Boyalife with each shipment of Product ordered by Boyalife. Such invoice shall be due
and payable thirty (30) days following the date of such invoice. All invoices shall be sent to Boyalife’s address for
notice purposes set forth in Section 12(e), without regard to the actual shipping address for the Product. Each such invoice
shall state Boyalife’s aggregate and unit purchase price for Product in the relevant shipment, plus any freight, taxes
or other costs incident to the purchase or shipment initially paid by Nuo and to be borne by Boyalife hereunder. Boyalife
shall make all payments to Nuo under this Agreement in United States dollars in immediately available funds to a bank account
designated by Nuo in such invoice, or otherwise designated by Nuo in writing. Boyalife shall not take any credits or offsets
against amounts billed Boyalife by Nuo without Nuo’s prior written consent.

 

(f)          Shipping;
Risk of Loss.

 

(i)          All
Product delivered by Nuo pursuant to this Agreement shall be suitably packed for surface or air shipment, in Boyalife’s sole
discretion, in a bulk shipping carton per the requirements set forth in the applicable purchase order, marked for shipment to such
location or locations as Boyalife may designate, and delivered to Boyalife or its carrier, FCA, Nuo’s Point of Shipment.
Risk of loss of Product shall pass to Boyalife upon delivery to the carrier at the FCA Point of Shipment.

 

(ii)         Nuo
shall ship all Product in accordance with Boyalife’s delivery instructions specified in Boyalife’s purchase orders;
provided, however, that if Boyalife does not provide delivery instructions with respect to the carrier to be used,
Nuo may use its customary carrier. Partial shipments are allowed. All freight, insurance and other shipping expenses, as well as
any special packing expenses, shall be paid by Boyalife. Boyalife shall also bear all applicable taxes and duties that may be assessed
against the Product after delivery to the carrier at the FCA Point of Shipment.

 

(iii)        Nuo
shall use its good faith efforts to ship the Product within a reasonable amount of time after receipt and acceptance of Boyalife’s
purchase order for the Product, consistent with Nuo’s shipping procedures in place from time to time. All shipments of Product
shall be deemed to conform to the relevant purchase order unless Nuo receives from Boyalife, no later than fifteen (15) days after
the receiving date of a given shipment, written notice specifying the shipment, the purchase order number and the exact nature
of the discrepancy between the shipment and the order.

 

(g)          Manufacturing.
Should Nuo no longer be capable of supplying Products to Boyalife, then Boyalife would have the right to manufacture products directly
or enter into a third party supply relationship for the Products. All necessary Aurix IP shall be maintained in an escrow account
and shall be released to Boyalife should Nuo cease capability of supplying Aurix Products to Boyalife.

 

7.          ADDITIONAL
OBLIGATIONS OF BOYALIFE.

 

(a)          Compliance
with Laws. Boyalife shall comply in all respects with the laws and regulations (including health and safety regulations) applicable
to the marketing, distribution, sale and service of Product within the Territory. Boyalife shall monitor the appropriate information
sources in the Territory for material changes in such laws and regulations relating to the distribution of Product within the Territory
and notify Nuo in writing of all such material changes.

 

(b)          U.S.
Export Controls. Boyalife understands and acknowledges that Nuo is subject to regulation by agencies of the United States Government,
including the United States Department of Commerce, the United States Department of the Treasury, and the United States Food and
Drug Administration, which prohibit export or diversion of certain products and technology to certain countries. Any and all obligations
of Nuo to provide the Product, documentation, or any media in which any of the foregoing is contained, as well as any other technical
assistance shall be subject in all respects to such United States laws and regulations as shall from time to time govern the license
and delivery of technology and products abroad by Persons subject to the jurisdiction of the United States, including the Export
Administration Act of 1979, as amended, any successor legislation, and the Export Administration Regulations issued by the Department
of Commerce, Bureau of Export Administration. Boyalife agrees to cooperate with Nuo, including providing required documentation,
in order to obtain export licenses or exemptions therefrom.

    	 	10	 

     

    

 

 

(c)          Regulatory
Relationships. Boyalife shall communicate with regulatory agencies within the Territory where the Product is registered, sold or
serviced by Boyalife for purposes of monitoring and maintaining any necessary documents or filings required for Boyalife to conduct
sales of the Product.

 

(d)          No
Conflicting Commitments. Boyalife shall not enter into any third party commitments or contracts for Product sales or service and
repair that supersedes or conflicts with the terms and conditions of this Agreement.

 

(e)          Distribution
of Competitive Products. Other than Boyalife’s own existing products, Boyalife agrees not to, directly or indirectly, distribute
or otherwise offer for sale similar third party platelet based products in wound care.

 

(f)          Commercialization
Resources and Diligence. Boyalife shall apply best efforts to the marketing, sales and customer support of the Product similar
to the effort and resources Boyalife applies to its other products.

 

8.          ADDITIONAL
OBLIGATIONS OF NUO.

 

(a)          Compliance
with Laws. Notwithstanding Section 7 of this Agreement, Nuo will obtain and maintain at its expense the necessary regulatory clearances
in the United States supporting the approval and clearance of the Product. Nuo will assist Boyalife, at Boyalife’s expense,
in obtaining regulatory clearances in Boyalife’s name for the Product. Nuo shall comply in all material respects with all
laws and regulations within the United States applicable to the manufacture, labeling, packaging and sale of the Product. Nuo shall
supply to Boyalife only Product which has 510(k) clearance or for which an application for such clearance has been filed.

 

(b)          Support.
Nuo shall provide consultation to Boyalife concerning technical aspects, regulatory approvals, and use of the Product from time
to time as reasonably requested by Boyalife. Nuo shall also provide consultation to Boyalife regarding regulatory approvals within
the Territory.

 

(c)          Scientific
and Technical Information. Nuo shall provide to Boyalife scientific and technical information available to Nuo and required for
distribution to obtain any registrations, licenses and permits required for the sale and distribution of the Product within the
Territory, or to respond to inquiries from customers or governmental or regulatory authorities.

 

(d)          Product
Training. Nuo shall provide Product training for Boyalife’s product managers and field application specialists on an as-needed
basis to enable Boyalife to promote the sale of Product and to perform post-sale customer training, technical assistance and support
for its customers. Such Product training shall be conducted, at times and locations requested by Boyalife and agreed upon by Nuo,
and will be free of charge, provided, however, that Boyalife shall be responsible for all out-of-pocket expenses
incurred in connection with such Product training, including travel, airfare and lodging expenses incurred by Boyalife’s
personnel while attending such training. In addition, Nuo will provide Product updates and service bulletins as they become available.

 

    	 	11	 

     

    

 

(e)          Information
Reporting. Nuo shall provide to Boyalife, at Nuo’s expense, (i) information regarding any discovered defects in the Product,
or any malfunction or deterioration in the performance of the Products, and (ii) any inadequacy in the labeling or the instructions
for use. Boyalife is responsible for disseminating the information to customers and sales representatives as appropriate.

 

(f)          Registrations,
Licenses and Patents. Nuo shall, as necessary to support approval, registration and licensing of the Products by Boyalife in the
Territory: (a) maintain all current regulatory files, registrations and licenses for Products outside of the Territory, (b) maintain
and pay fees associated with any third party intellectual property licenses, if any, necessary to practice the rights granted under
this Agreement, and (c) maintain and pay the associated filing and maintenance fees for all patents owned by Nuo.

 

(g)          Responsible
Person. Boyalife shall notify the competent authorities in Territory that it has been designated as the person responsible for
the marketing and distribution of the Product within the Territory, and Boyalife’s address for notice purposes in Section
12(e) shall be the principal place of business for such purposes.

 

(h)          Inventory
Requirement. Nuo or its contracted manufacturers will maintain no less than forty five (45) days’ finished goods inventories
of Products based upon Boyalife’s annual unit forecast, updated on a rolling quarterly basis, pursuant to Section 5(d) above,
and forty five (45) days’ inventory of service and support parts, based on historical usage, to assure supply of Product
for customers.

 

(i)          Indemnity
Obligations. Nuo will indemnify, hold harmless and upon Boyalife’s request, defend at its own expense Boyalife and its officers,
directors, employees, agents, representatives, successors and assigns (collectively, the “Boyalife Indemnified Persons”)
from and against any loss, claim, cost, suit, action, liability, judgment, decree, damage or expense including reasonable attorney’s
fees, imposed upon, incurred by or asserted against the Boyalife Indemnified Persons, arising from any third party claim, demand
or action arising from (i) the infringement or misappropriation of the intellectual property rights of a third party by a Product
or use thereof, or Boyalife’s use of the Nuo Trademarks, pursuant to this Agreement and (ii) any defect in the manufacturing
or design of a Product.

 

9.          REPRESENTATIONS
AND WARRANTIES OF THE PARTIES.

 

(a)          Nuo.
Nuo hereby represents and warrants to Distributor that:

 

(i)          Nuo
is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware, and has all
corporate power and authority to own, lease and operate its properties and to carry on its businesses as it is currently being
conducted. Nuo has all necessary corporate power and authority to enter into this Agreement and to perform its obligations hereunder.
This Agreement has been duly authorized, executed and delivered by Nuo.

 

(ii)         The
execution, delivery and performance by Nuo of this Agreement and the consummation of the transactions contemplated hereby do not
violate or conflict with the Certificate of Incorporation or Bylaws of Nuo, any material contract, agreement or instrument to which
Nuo is a party or by which it or its properties are bound, or any judgment, decree, order or award of any court, governmental body
or arbitrator by which Nuo is bound, or any law, rule or regulation applicable to Nuo.

 

    	 	12	 

     

    

 

(iii)        Nuo
holds valid licenses to third party intellectual property, if any, necessary to practice the rights granted in this Agreement.
Further, Nuo is the sole, exclusive and lawful owner of all right, title and interest in and to the applicable Nuo Technology incorporated
in the Product and to the Nuo Trademarks. Nuo has not granted to any other Person any license, franchise or other rights to acquire,
use or exploit the Nuo Technology within the Territory (or any portion thereof). Nuo has the right to grant the license, distribution
and other rights to Boyalife hereunder.

 

(iv)        Nuo
has in place, and shall have in place during the time that the manufacturing of the Products remains under its regulatory control:
(1) a quality management system that meets the requirements of current ISO 13485:2003 and 21CFR820; (2) required U.S. FDA registrations;
(3) good manufacturing practice (GMP) controls at all manufacturing facilities associated with Product; (4) a change management
system to control internal and supplier processes, so that changes to processes, contact materials and devices/components are approved
by Nuo prior to implementation; (5) special process validations, specifically for cleaning, sterile barrier packaging and sterilization;
and (6) sterilizers which maintain proper ISO certifications.

 

(b)          Boyalife.
Boyalife hereby represents and warrants to Nuo that:

 

(i)          Boyalife
is a company duly organized and existing under the laws of Territory, and has all power and authority to own, lease and operate
its properties and to carry on its businesses as currently conducted. Boyalife has all necessary power and authority to enter into
this Agreement and to perform its obligations hereunder. This Agreement has been duly authorized, executed and delivered by Boyalife.

 

(ii)         The
execution, delivery and performance by Boyalife of this Agreement and the consummation of the transactions contemplated hereby
do not violate or conflict with the Certificate of Incorporation or Bylaws of Boyalife, any material contract, agreement or instrument
to which Boyalife is a party or by which it or its properties are bound, or any judgment, decree, order or award of any court,
governmental body or arbitrator by which Boyalife is bound, or any law, rule or regulation applicable to Boyalife.

 

(iii)        Boyalife
has (directly and/or with its Affiliates) the distribution facilities and personnel reasonably necessary to perform its functions
and otherwise carry out its obligations under the terms of this Agreement.

 

10.         TERM
AND TERMINATION.

 

(a)          Term.
The term of this Agreement shall commence on the Effective Date and shall continue for five (5) years (the “Initial Term”),
unless earlier terminated pursuant to Section 10(b). Upon mutual consent of the Parties, the Agreement will be extended for an
additional three (3) year period (the “Renewal Term” and together with Initial Term, the “Term”), subject
to termination during such Renewal Terms as set forth in this Agreement. Prior to expiration of the Initial Term, the Parties may
negotiate in good faith to transfer ownership of the Aurix Product within the Territory. If an agreement is not reached by the
end of the Term, the Agreement will automatically renew for a subsequent three (3) year period.

 

(b)          Termination
of Agreement. This Agreement may be terminated as follows:

 

(i)          The
Parties may terminate this Agreement upon their mutual written agreement.

 

    	 	13	 

     

    

 

(ii)         Nuo
may terminate this Agreement if Boyalife breaches any of its material representations, warranties, covenants or obligations under
this Agreement and such breach continues for a period of thirty (30) days following Boyalife’s receipt of written notice
from Nuo setting forth the nature of such breach. The dispute of audit findings shall be excluded, until it is decided by binding
arbitration.

 

(iii)        Boyalife
may terminate this Agreement if Nuo breaches any of its material representations, warranties, covenants or obligations under this
Agreement and such breach continues for a period of thirty (30) days following Nuo’s receipt of written notice from Boyalife
setting forth the nature of such breach.

 

(iv)        One
Party may terminate immediately this Agreement by written notice to the other Party upon the occurrence of any of the following
events: (i) the other Party is or becomes insolvent or unable to pay its debts as they become due within the meaning of the United
States Bankruptcy Code (or any successor statute) or any analogous foreign statute; or (ii) the other Party appoints or has appointed
a receiver for all or substantially all of its assets, or makes an assignment for the benefit of its creditors; or (iii) the other
Party files a voluntary petition under the United States Bankruptcy Code (or any successor statute) or any analogous foreign statute;
or (iv) the other Party has filed against it an involuntary petition under the United States Bankruptcy Code (or any successor
statute) or any analogous foreign statute, and such petition is not dismissed within ninety (90) days.

 

(v)         After
the Initial Term or each Renewal Term, either Party may terminate this Agreement at the end of the current Renewal Term by giving
the other Party written notice of termination at least six (6) months prior to the end of the current Renewal Term.

 

(c)          Effect
of Termination.

 

(i)          The
expiration or earlier termination of this Agreement shall not relieve any Party of any of its rights or liabilities arising prior
to or upon such expiration or earlier termination.

 

(ii)         Within
ten (10) business days following the effective date of the expiration or earlier termination of this Agreement, Boyalife shall
provide to Nuo a complete inventory of Product in Boyalife’s possession, in transit between Boyalife’s authorized locations
or in transit to Boyalife from Nuo or otherwise in Boyalife’s control. Nuo may inspect Boyalife’s Product inventory
and audit Boyalife’s records in the manner provided herein.

 

(iii)        If
Boyalife gives written notice of its intention not to renew for the Renewal Term in accordance with this Agreement, then Boyalife
and Nuo shall meet to establish a transition plan. In addition to establishing a transition plan, Boyalife shall:

 

(1)         make
available any existing inventory of Product to Nuo, including any Product that has been customized by Boyalife;

 

(2)         transfer
and assign all regulatory certifications or licenses related to the Product;

 

(3)         provide
customer information needed to facilitate the orderly transition of the sale and marketing of the Product;

 

(4)         transition
all manufacturing and vendor agreements;

 

    	 	14	 

     

    

 

(5)         negotiate
in good faith to provide a license to use any Boyalife Intellectual Property related to or used in the sale of the Products by
Boyalife pursuant to this Agreement; and

 

(6)         take
any other action reasonably requested by Nuo to facilitate the orderly transition of the sale and marketing of the Product in the
Territory following expiration of the Term.

 

(iv)        Notwithstanding
the expiration or earlier termination of this Agreement, Boyalife may continue to market, distribute and sell Products within the
Territory after the expiration or earlier termination of this Agreement until the earlier of (i) the date that Boyalife has sold
all of its Product inventory existing as of the effective date of expiration or earlier termination and (ii) the six (6)-month
anniversary of the effective date of expiration or earlier termination.

 

(d)          Force
Majeure. Neither Party shall be liable to the other Party for non-performance of or delay in performing its obligations hereunder
to the extent that performance is rendered impossible by strike, riot, war, acts of God, acts of terrorism, earthquake, fire, flood,
governmental acts or orders or restrictions, failure of suppliers, or any other reason to the extent that the failure to perform
is beyond the reasonable control of the non-performing Party.

 

11. CONFIDENTIALITY.

 

(a)          Confidentiality.
Each Party acknowledges that, in the course of performing its duties and obligations under this Agreement, certain information
that is confidential or proprietary to such Party (“Confidential Information”) will be furnished by the other Party
or such other Party’s representatives. Each Party agrees that any Confidential Information furnished by the other Party or
such other Party’s representatives will not be used by it or its representatives except in connection with, and for the purposes
of, the development, promotion, marketing, distribution and sale of Products under this Agreement and, except as provided herein,
will not be disclosed by it or its representatives without the prior written consent of the other Party. Notwithstanding the foregoing,
the Parties agree that other than trade secrets (as defined under the Uniform Trade Secrets Act or its equivalent in the Territory)
all Confidential Information shall be clearly marked “CONFIDENTIAL” or, if furnished in oral form, shall be stated
to be confidential by the Party disclosing such information at the time of such disclosure and reduced to a writing by the Party
disclosing such information which is furnished to the other Party or such other Party’s representatives within forty-five
(45) days after such disclosure.

 

(b)          Exceptions.
The confidentiality obligations of each Party under Section 11(a) do not extend to any Confidential Information furnished by the
other Party or such other Party’s representatives that (i) is or becomes generally available to the public other than as
a result of a disclosure by such Party or its representatives, (ii) was available to such Party or its representatives on a non-confidential
basis prior to its disclosure thereto by the other Party or such other Party’s representatives, (iii) was independently developed
without the use of the other Party’s Confidential Information by representatives of such Party who did not have access to
the other Party’s Confidential Information, as established by contemporaneous written records, or (iv) becomes available
to such Party or its representatives on an non-confidential basis from a source other than the other Party or such other Party’s
representatives; provided, however, that such source is not bound by a confidentiality agreement with the other Party
or such other Party’s representatives.

 

    	 	15	 

     

    

 

(c)          Authorized
Disclosure. Notwithstanding any other provision of this Agreement, each Party may disclose Confidential Information of the other
Party: (i) to the extent required to comply with applicable legal requirements including as part of regular securities law reporting
requirements and/or in accordance with securities regulatory authority or securities exchange rules, demands and/or practice; (ii)
to the extent and to the persons and entities required by rules of the National Association of Securities Dealers; provided,
however, that the responding Party shall first have given prompt notice to the other Party hereto to enable it to seek any
available exemptions from or limitations on such disclosure requirement and shall reasonably cooperate in such efforts by the other
Party; or (iii) as necessary to file or prosecute patent applications, prosecute or defend litigation or otherwise establish rights
or enforce obligations under this Agreement, but only to the extent that any such disclosure is necessary.

 

(d)          Compelled
Disclosure. In the event that either Party or its representatives are requested or become legally compelled (by oral questions,
interrogatories, requests for information or document subpoena, civil investigative demand or similar process) to disclose any
Confidential Information furnished by the other Party or such other Party’s representatives or the fact that such Confidential
Information has been made available to it, such Party agrees that it or its representatives, as the case may be, will provide the
other Party with prompt written notice of such request(s) so that the other Party may seek a protective order or other appropriate
remedy and/or waive compliance with the provisions of this Agreement. In the event that such protective order or other remedy is
not obtained, or that the other Party waives compliance with the provisions of this Agreement, such Party agrees that it will furnish
only that portion of such Confidential Information that is legally required and will exercise its best efforts to obtain reliable
assurance that confidential treatment will be accorded to that portion of such Confidential Information and other information being
disclosed.

 

(e)          Ownership
of Confidential Information. The Party disclosing or otherwise furnishing Confidential Information to the other Party will retain
the exclusive ownership of all right, title and interest in and to such Confidential Information.

 

(f)          Survival.
The obligations of the Parties under this Section 11 shall survive the expiration or earlier termination of this Agreement for
a period of three (3) years; provided, however, that information that is a “trade secret” shall be not
be used and shall be kept confidential by the Party receiving such Confidential Information from the disclosing Party until such
information is no longer deemed a “trade secret” under the Uniform Trade Secrets Act or its equivalent in the Territory.

 

12.         GENERAL
PROVISIONS.

 

(a)          Independent
Contractors. The relationship of Nuo and Boyalife established by this Agreement is that of independent contractors, and nothing
shall be deemed to create or imply any employer/employee, principal/agent, partner/partner or co-venturer relationship, or that
the Parties are participants in a common undertaking. Neither Party may direct or control the activities of the other Party or
incur or assume any obligation on behalf of the other Party or bind such other Party to any obligation for any purpose whatsoever.

 

(b)          Governing
Law. This Agreement and all acts and transactions pursuant hereto and the rights and obligations of the Parties shall be governed,
construed and interpreted in accordance with the laws of the State of Delaware, without reference to rules of conflicts or choice
of laws.

 

(c)          Dispute
Resolution. Any disputes or controversies which may arise between parties in connection with this Agreement shall be finally settled
by arbitration. Such arbitration shall be held in English, in Wilmington, Delaware, the United States, pursuant to the Commercial
Arbitration Rules of the American Arbitration Association if arbitration proceedings are initiated by Boyalife, and in Hong Kong,
China, pursuant to the rules of Conciliation and Arbitration of the International Chamber of Commerce if arbitration proceedings
are initiated by Nuo. The decision of the arbitrator(s) shall be final and binding, and judgment on the award rendered by the arbitrator(s)
may be entered in any court having jurisdiction thereof. The arbitrator(s) shall be authorized to award any relief, whether legal
or equitable, to the Party so entitled to such relief.

 

    	 	16	 

     

    

 

(d)          Entire
Agreement. This Agreement, including the exhibits and any schedules, sets forth the entire agreement and understanding of the Parties
relating to the subject matter hereof and supersedes all prior oral and written, and all contemporary oral, negotiations, agreements
and understandings with respect to the same.

 

(e)          Notices.
All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given (and shall be
deemed to have been duly given upon receipt) by delivery in person, by cable, facsimile or international courier, or by registered
or certified mail (postage prepaid, return receipt requested), to the other Party at the following address (or at such other address
for which such Party gives notice hereunder):

 

If to Boyalife:

 

Boyalife Hong Kong Ltd.

c/o Boyalife Group Ltd.

800 Jiefang Road, 14th Floor

Wuxi, China, 214002

Attention: CEO’s Office

Telephone: +86 (510) 81808111

Facsimile: +86 (510) 81177850

 

If to Nuo:

 

Nuo Therapeutics, Inc.

207A Perry Parkway, Suite 1

Gaithersburg, MD 20877

Attention: Chief Financial Officer

Telephone: (240) 499-2680

Facsimile: (240) 499-2690

 

(f)          Assignment
and Binding Effect. Except as otherwise provided in this Agreement, neither Party may, directly or indirectly, assign its rights
or delegate its duties under this Agreement without the prior written consent of the other Party; provided that Nuo may
assign this Agreement (i) to an Affiliate, (ii) to a successor to all or substantially all of the business or assets of Nuo, (iii)
to any secured party in connection with its rights under the credit agreement and the other financing documents. No permitted assignment
of rights or delegation of duties under this Agreement shall relieve the assigning or delegating Party of its liabilities hereunder.
For purposes of this Agreement, either Party shall be deemed to have assigned this Agreement in the event of a Change of Control
with respect to such Party. Subject to the foregoing, this Agreement is binding upon, and inures to the benefit of, the Parties
and their respective successors and permitted assigns.

 

(g)          Partial
Invalidity. If any provision of this Agreement is held to be invalid by a court of competent jurisdiction, then the remaining provisions
shall remain, nevertheless, in full force and effect. The Parties agree to renegotiate in good faith any term held invalid and
to be bound by the mutually agreed substitute provision in order to give the most approximate effect intended by the Parties.

 

    	 	17	 

     

    

 

(h)          No
Waiver; Amendment. No waiver of any term or condition of this Agreement shall be valid or binding on any Party unless agreed to
in writing by the Party to be charged. The failure of either Party to enforce at any time any of the provisions of the Agreement,
or the failure to require at any time performance by the other Party of any of the provisions of this Agreement, shall in no way
be construed to be a present or future waiver of such provisions, nor in any way affect the validity of either Party to enforce
each and every such provision thereafter. This Agreement may not be amended or modified except by the written agreement of the
Parties.

 

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

 

(j)          Consent
Not Unreasonably Withheld. No Party given the right to approve or consent to any matter shall unreasonably withhold, condition
or delay its approval or consent. The failure to respond in writing within any specified time period shall be deemed unconditioned
approval of or consent to the relevant matter; provided that the Party requesting such approval or consent gives written
notice requesting a response at least two (2) business days prior to the expiration of the specified time period, if any.

 

(k)          Construction;
Interpretation. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning
or interpretation of this Agreement. Any section, recital, exhibit, schedule and Party references are to this Agreement unless
otherwise stated. No Party, nor its counsel, shall be deemed the drafter of this Agreement for purposes of construing the provisions
of this Agreement, and all provisions of this Agreement shall be construed in accordance with their fair meaning, and not strictly
for or against any Party. Each Party hereby acknowledges that they have not relied on any promise, representation or warranty that
is not set forth in this Agreement. Whenever the words “include,” “includes,” “including” or
similar expressions are used in this Agreement, they will be understood be followed by the words “without limitation.”
All references to “$” or “dollars” are to U.S. dollars, and all amounts to be calculated or paid under
this Agreement will be in U.S. dollars.

 

(l)          Further
Assurances. Each Party agrees to cooperate fully with the other and execute such instruments, documents and agreements and take
such further actions to carry out the intents and purposes of this Agreement.

 

(m)          Press
Releases and Announcements. Except as may be contemplated hereunder, neither Party may issue any press release, product any professional
publications or make any public announcement concerning the transactions contemplated by this Agreement without the prior consent
of the other Party, except for any releases, publications or announcements which may be required by or, in such Party’s discretion,
reasonably necessary under applicable law, in which case the Party proposing to make such release or announcement will allow the
other Party a reasonable opportunity to review and comment on such release, publications or announcement in advance of such issuance
or making.

 

[Remainder of This Page Intentionally
Left Blank; Signature Page Follows]

 

    	 	18	 

     

    

 

In
Witness Whereof, each of the undersigned
has caused this Agreement to be duly executed.

 

	 	Nuo
    therapeutics Inc.
	 	 	 
	 	By:	
	 	 	Name: David Jorden
	 	 	Title: Acting CEO/CFO

 

    	 	19	 

     

    

 

	 	BOYALIFE HOng KOng
    Ltd.  
	 	 	 
	 	By :	
	 	 	Name: XIAOCHUN XU 
	 	 	Title: CHAIRMAN

 

    	 	20	 

     

    

 

Exhibit 1

 

Nuo Patent

 

Nuo Patent-1 

 

Application No.

 

Patent No.

 

Nuo Patent-2

 

Application No.

 

Patent No.

 

     

     

    

 

Exhibit 2

 

Nuo Trademark

 

 

AURIX

 

AURIX SYSTEM

 

AUTOLOGEL

 

CYTOMEDIX

 

NUO THERAPEUTICS

 

     

     

    

 

Exhibit 3

 

Product

 

	Centrifuge II	 
	 	 
	Wound Dressing Kit Section I	 
	S-Monovette Tubes	ACD-A, 6.0ml
	Safety-MultiFly Set	21g x 3/4” 
	Tourniquet	 
	Alcohol Prep Pads	2-Ply Medium, Saturated with 70%
	Gauze Sponges	 
	Adhesive Bandage Strips	 
	Foam Tub Holder	 
	 	 
	Wound Dressing Kit Section II	 
	Alcohol Prep Pads	2-Ply Medium, Saturated with 70%
	 Gauze Sponges	 
	3 mL Syringe w/Needle	20 G x 1”
	5 mL Syringe w/Needle	20 G x 1” 
	20 mL Syringe w/Needle	 
	3 Way Stop Lock	Discofix
	Blunt Needle	Monoject 16” x 1 1/2”
	Skin Protection Wipe	Cavilon—No Sting Barrier Film, 1.0 ml
	N-Terface Dressing	4” x 12” Strip
	 	 
	Reagent Kit	 
	Ascor L 500, Ascorbic Acid Injection, USP, 500mg/mL	McGuff Pharmaceuticals, Inc.
	Calcium Chloride Injection, USP, 10%	American Reagents, Inc. 
	Thrombin Topical (Bovine Origin) USP, Thrombin-JMI 5,000U King Pharmaceuticals (Pfizer)

 

     

     

    

 

Exhibit 4

 

Transfer Price

 

	Procurement Cost	5% Mark-up

 

Centrifuge II

 

Wound Dressing Kit

 

Reagent Kit

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