Document:

Form OF

BRIDGE
DEBENTURE AGREEMENT

 

This
Bridge Debenture Agreement (this “Agreement”), dated as of June 13, 2019, is made by and among Rennova Health,
Inc. (the “Company”) and each of the purchasers signatory hereto (the “Purchaser”). Reference
is made to that certain Securities Purchase Agreement, dated as of August 31, 2017 (the “Purchase Agreement”),
as amended, by and among the Company and each purchaser identified on the signature pages thereto. Capitalized terms used and
not otherwise defined herein that are defined in the Purchase Agreement shall have the meanings given such terms in the Purchase
Agreement.

 

For
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 

1.
Issuance of Bridge Debenture. The Company hereby agrees to issue, jointly and severally with Christopher Diamantis, to
the Purchasers, and the Purchasers hereby agree to purchase debentures of the Company, the aggregate principal amount of $1,250,000
of debentures, which debenture shall be in the form of the debenture attached hereto as Exhibit A (the “Bridge
Debentures”). The total aggregate purchase price to the Purchasers for the purchase of the Bridge Debentures is $1,250,000.
The Company shall promptly deliver to each Purchaser the applicable Bridge Debentures. Additionally, on or prior to June 30, 2019,
at the mutual election of the Company and the Purchaser, the Purchasers may purchase an additional $1,250,000 on the same terms
and conditions provided for hereunder, at which time the parties shall enter into agreements in the form of this Agreement, Mutatis
Mutandis.

 

2.
Security Interest and Mortgage. Company hereby acknowledges and agrees that (a) the security interests granted to the holders
of the outstanding convertible debentures (“Existing Debentures”) pursuant to the Security Agreement, dated
May 20, 2017 applies to and covers the obligations of the Company to the Purchasers evidenced by the Bridge Debentures, (b) upon
the filing of an amendment to the Existing Mortgage (as defined in the Purchase Agreement), the liens granted to the Purchasers
pursuant to the Existing Mortgage applies to and covers the obligations of the Company to the Purchasers evidenced by the Bridge
Debentures and (c) the Bridge Debentures rank pari passu to the Existing Debentures.

 

3.
Subsidiary Guarantee. The Bridge Debenture constitutes an “Obligation” under the Subsidiary Guarantee (as defined
in the Purchase Agreement) as if the Bridge Debentures were Existing Debentures issued pursuant to the Purchase Agreement.

 

4.
Subordination Agreement. The Company shall have received confirmations and acknowledgments from the signatories thereto
that the Bridge Debentures are subject to the subordination agreements required pursuant to the Purchase Agreement.

 

5.
Exchange Right. Reference is made to that certain Exchange Agreement, dated October 30, 2017, by and between the Company
and the Purchaser (“Exchange Agreement”) and the Series I-2 Convertible Preferred Stock (“Preferred
Stock”) issuable upon exchange of the Existing Securities (as defined thereunder). The Purchaser shall have the right,
in its sole discretion, to exchange, from time to time and all or in part, any principal amount of the Bridge Debentures pursuant
to the Exchange Agreement as if such Bridge Debentures were Existing Debentures. The issuance of Exchange Securities in exchange
for Bridge Debentures shall be on the same terms and conditions as the exchange for Existing Securities. The Exchange Agreement
is hereby amended to include in the definition of Existing Securities the Bridge Debentures in all respects.

 

    	 

    	 

    

 

6.
Extension of Maturity Dates; Interest on Prior Bridge Debentures. The Maturity Date of all outstanding Debentures held
by the Purchaser and issued in 2019 shall be amended to mature on December 31, 2019 and such Debentures shall hereafter include
the interest provisions set forth in Section 2 of the Bridge Debenture issued hereunder. The Debentures issued in 2019 were issued
on February 25 ($300,000), March 27 ($300,000), May 12 ($500,000), June 5 ($125,000) and June 7 ($200,000).

 

7.
Representations and Warranties of the Company. The Company hereby makes to the Purchaser the following representations
and warranties:

 

(a)
Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate
the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder and thereunder. The execution
and delivery of this Agreement by the Company and the consummation by the Company of the transactions contemplated hereby have
been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, its
board of directors or its stockholders in connection therewith. This Agreement has been duly executed by the Company and, when
delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable against
the Company in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii)
as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii)
insofar as indemnification and contribution provisions may be limited by applicable law.

 

(b)
No Conflicts. The execution, delivery and performance of this Agreement by the Company and the consummation by the Company
of the transactions contemplated hereby do not and will not: (i) conflict with or violate any provision of the Company’s
certificate or articles of incorporation, bylaws or other organizational or charter documents; or (ii) subject to the Required
Approvals, conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default)
under, result in the creation of any Lien (except as contemplated by the Security Documents) upon any of the properties or assets
of the Company in connection with, or give to others any rights of termination, amendment, acceleration or cancellation (with
or without notice, lapse of time or both) of, any material agreement, credit facility, debt or other material instrument (evidencing
Company debt or otherwise) or other material understanding to which such Company is a party or by which any property or asset
of the Company is bound or affected; or (iii) subject to the Required Approvals, conflict with or result in a violation of any
law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which
the Company is subject (including federal and state securities laws and regulations), or by which any property or asset of the
Company is bound or affected, except, in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected
to result in a Material Adverse Effect.

 

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(c)
Issuance of the Bridge Debenture. The Bridge Debentures are duly authorized and, upon the execution and delivery by the
Company and the execution of this Agreement by a Purchaser, will be duly and validly issued, fully paid and nonassessable, free
and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents.

 

(d)
Affirmation of Prior Representations and Warranties. Except as set forth on Schedule 3(e) hereto, the Company hereby
represents and warrants to each Purchaser that the Company’s representations and warranties listed in Section 3.1 of the
Purchase Agreement are true and correct as of the date hereof.

 

8.
Representations and Warranties of the Purchaser. The Purchaser hereby represents and warrants as of the date hereof to
the Company as follows:

 

(a)
Authority. The execution, delivery and performance by such Purchaser of the transactions contemplated by this Agreement
have been duly authorized by all necessary corporate or similar action on the part of such Purchaser. This Agreement has been
duly executed by such Purchaser and, when delivered by such Purchaser in accordance with the terms hereof, will constitute the
valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except (i) as limited
by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application
affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited
by applicable law.

 

(b)
Purchaser Status. Such Purchaser is an “accredited investor” as defined in Rule 501under the Securities Act.

 

(c)
General Solicitation. Such Purchaser is not purchasing the Bridge Debenture as a result of any advertisement, article,
notice or other communication regarding the Bridge Debenture published in any newspaper, magazine or similar media or broadcast
over television or radio or presented at any seminar or any other general solicitation or general advertisement.

 

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9.
The Company shall by 9:00 a.m. ET on June 14, 2019 file a Current Report on Form 8-K, including the Transaction Documents as exhibits
thereto, with the Commission. From and after the filing of such Form 8-K, the Company represents to the Purchasers that it shall
have publicly disclosed all material, non-public information delivered to any of the Purchasers by the Company or any of its Subsidiaries,
or any of their respective officers, directors, employees or agents in connection with the transactions contemplated by the Transaction
Documents. In addition, effective upon the filing of such Form 8-K, the Company acknowledges and agrees that any and all confidentiality
or similar obligations under any agreement, whether written or oral, between the Company, any of its Subsidiaries or any of their
respective officers, directors, agents, employees or Affiliates on the one hand, and any of the Purchasers or any of their Affiliates
on the other hand, shall terminate.

 

10.
Effect on Transaction Documents. Except as expressly set forth above, all of the terms and conditions of the Transaction
Documents shall continue in full force and effect after the execution of this Agreement and shall not be in any way changed, modified
or superseded by the terms set forth herein, including, but not limited to, any other obligations the Company may have to the
Purchaser under the Transaction Documents. Notwithstanding the foregoing, this Agreement shall be deemed for all purposes as an
amendment to any Transaction Document as required to serve the purposes hereof, and in the event of any conflict between the terms
and provisions of the Debentures or any other Transaction Document, on the one hand, and the terms and provisions of this Agreement,
on the other hand, the terms and provisions of this Agreement shall prevail.

 

11.
Amendments and Waivers. The provisions of this Agreement, including the provisions of this sentence, may not be amended,
modified or supplemented, and waivers or consents to departures from the provisions hereof may not be given, unless the same shall
be in writing and signed by the Company and each Purchaser.

 

12.
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall
be delivered as set forth in the Purchase Agreement.

 

13.
Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the successors and permitted assigns
of each of the parties and shall inure to the benefit of each Purchaser. The Company may not assign (except by merger) its rights
or obligations hereunder without the prior written consent of the Purchaser of the then-outstanding Securities. The Purchaser
may assign their rights hereunder in the manner and to the Persons as permitted under the Purchase Agreement.

 

14.
Execution and Counterparts. This Agreement may be executed in two or more counterparts, all of which when taken together
shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and
delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any
signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature
shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same
force and effect as if such facsimile or “.pdf” signature page were an original thereof.

 

15.
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall
be determined in accordance with the provisions of the Purchase Agreement.

 

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16.
Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use
their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result
as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention
of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any
of such that may be hereafter declared invalid, illegal, void or unenforceable.

 

17.
Headings. The headings in this Agreement are for convenience only, do not constitute a part of the Agreement and shall
not be deemed to limit or affect any of the provisions hereof.

 

18.
Personal Guarantee. Christopher Diamantis hereby, jointly and severally, unconditionally and irrevocably, guarantees to
each Purchaser the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise)
in indefeasible payment in full of the March Debentures and the June Debentures.

 

[SIGNATURE
PAGE FOLLOWS]

 

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Executed
as of the first date written above by the undersigned duly authorized representatives of the Company and the Purchaser:

 

RENNOVA
HEALTH, INC.

 

	By:	 	 
	Name:		 
	Title:		 

 

Name
of Purchaser:

 

Signature
of Authorized Signatory: Sabby Healthcare Master Fund, Ltd.

 

Name
of Authorized Signatory: Robert Grundstein

 

Title
of Authorized Signatory: COO of Investment Manager

 

Purchase
Price: $625,000

 

Name
of Purchaser:

 

Signature
of Authorized Signatory: Sabby Volatility Warrant Master Fund, Ltd.

 

Name
of Authorized Signatory: Robert Grundstein

 

Title
of Authorized Signatory: COO of Investment Manager

 

Purchase
Price: $625,000

 

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[RNVA
BRIDGE DEBENTURE AGREEMENT – SECTION 18]

 

Solely
with respect to the personal guarantee obligations under Section 18:

 

 

 

Christopher
Diamantis

 

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EXHIBIT A

 

THIS
SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS. THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED
BY SUCH SECURITIES.

 

Original
Issue Date: June 13, 2019

 

$_________

 

Debenture

DUE
December 31, 2019

 

DEBENTURE
is one of a series of duly authorized and validly issued Debentures of Rennova Health, Inc., a Delaware corporation, (the “Company”),
having its principal place of business at 400 S. Australian Avenue, West Palm Beach, Florida 33401, designated as its Debenture
due December 31, 2019 (this debenture, the “Debenture” and, collectively with the other debentures of such
series, the “Debentures”).

 

FOR
VALUE RECEIVED, the Company and Christopher Diamantis, an individual residing at ________________ (“Joint Obligor”
and with the Company, the “Makers”)), severally and jointly, promises to pay to ____________________ or its
registered assigns (the “Holder”), or shall have paid pursuant to the terms hereunder, the principal sum of
$_________ on December 31, 2019 (the “Maturity Date”) or such earlier date as this Debenture is required or
permitted to be repaid as provided hereunder. This Debenture is subject to the following additional provisions:

 

Section
1. Definitions. For the purposes hereof, in addition to the terms defined elsewhere in this Debenture, (a) capitalized terms
not otherwise defined herein shall have the meanings set forth in the Bridge Agreement and (b) the following terms shall have
the following meanings:

 

“Bankruptcy
Event” means any of the following events: (a) the Company or any Significant Subsidiary (as such term is defined in
Rule 1-02(w) of Regulation S-X) thereof commences a case or other proceeding under any bankruptcy, reorganization, arrangement,
adjustment of debt, relief of debtors, dissolution, insolvency or liquidation or similar law of any jurisdiction relating to the
Company or any Significant Subsidiary thereof, (b) there is commenced against the Company or any Significant Subsidiary thereof
any such case or proceeding that is not dismissed within 60 days after commencement, (c) the Company or any Significant Subsidiary
thereof is adjudicated insolvent or bankrupt or any order of relief or other order approving any such case or proceeding is entered,
(d) the Company or any Significant Subsidiary thereof suffers any appointment of any custodian or the like for it or any substantial
part of its property that is not discharged or stayed within 60 calendar days after such appointment, (e) the Company or any Significant
Subsidiary thereof makes a general assignment for the benefit of creditors, (f) the Company or any Significant Subsidiary thereof
calls a meeting of its creditors with a view to arranging a composition, adjustment or restructuring of its debts, (g) the Company
or any Significant Subsidiary thereof admits in writing that it is generally unable to pay its debts as they become due, or (h)
the Company or any Significant Subsidiary thereof, by any act or failure to act, expressly indicates its consent to, approval
of or acquiescence in any of the foregoing or takes any corporate or other action for the purpose of effecting any of the foregoing.

 

    	 

    	 

    

 

“Bridge
Agreement” means the Bridge Debenture Agreement, dated as of June 13, 2019, among the Company and the Holders, as amended,
modified or supplemented from time to time in accordance with its terms.

 

“Business
Day” means any day except any Saturday, any Sunday, any day which is a federal legal holiday in the United States or
any day on which banking institutions in the State of New York are authorized or required by law or other governmental action
to close.

 

“Change
of Control Transaction” means the occurrence after the date hereof of any of (a) an acquisition after the date hereof
by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1) promulgated under the Exchange Act)
of effective control (whether through legal or beneficial ownership of capital stock of the Company, by contract or otherwise)
of in excess of 45% of the voting securities of the Company (other than by means of conversion or exercise of the debentures issued
pursuant to the Purchase Agreement and the securities issued together with such debentures), (b) the Company merges into or consolidates
with any other Person, or any Person merges into or consolidates with the Company and, after giving effect to such transaction,
the stockholders of the Company immediately prior to such transaction own less than 60% of the aggregate voting power of the Company
or the successor entity of such transaction, (c) the Company sells or transfers all or substantially all of its assets to another
Person and the stockholders of the Company immediately prior to such transaction own less than 60% of the aggregate voting power
of the acquiring entity immediately after the transaction, (d) a replacement at one time or within a three year period of more
than one-half of the members of the Board of Directors which is not approved by a majority of those individuals who are members
of the Board of Directors on the Original Issue Date (or by those individuals who are serving as members of the Board of Directors
on any date whose nomination to the Board of Directors was approved by a majority of the members of the Board of Directors who
are members on the date hereof), or (e) the execution by the Company of an agreement to which the Company is a party or by which
it is bound, providing for any of the events set forth in clauses (a) through (d) above.

 

“Debenture
Register” shall have the meaning set forth in Section 2(c).

 

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“Event
of Default” shall have the meaning set forth in Section 5(a).

 

“Mandatory
Default Amount” means the sum of (a) 130% of the outstanding principal amount of this Debenture, and (b) all other amounts,
costs, expenses and liquidated damages due in respect of this Debenture.

 

“New
York Courts” shall have the meaning set forth in Section 6(d).

 

“Original
Issue Date” means the date of the first issuance of the Debentures, regardless of any transfers of any Debenture and
regardless of the number of instruments which may be issued to evidence such Debentures.

 

“Permitted
Indebtedness” means (a) the indebtedness evidenced by the Debentures, (b) the Indebtedness existing on the Original
Issue Date and set forth on Schedule 3.1(aa) attached to the Bridge Agreement, (c) lease obligations and purchase money
indebtedness of up to $3,000,000, in the aggregate, incurred in connection with the acquisition of capital assets and lease obligations
with respect to newly acquired or leased assets and (d) indebtedness that (i) is expressly subordinate to the Debentures pursuant
to a written subordination agreement with the Purchasers that is acceptable to each Purchaser in its sole and absolute discretion
and (ii) matures at a date later than the 91st day following the Maturity Date.

 

“Permitted
Lien” means the individual and collective reference to the following: (a) Liens for taxes, assessments and other governmental
charges or levies not yet due or Liens for taxes, assessments and other governmental charges or levies being contested in good
faith and by appropriate proceedings for which adequate reserves (in the good faith judgment of the management of the Company)
have been established in accordance with GAAP, (b) Liens imposed by law which were incurred in the ordinary course of the Company’s
business, such as carriers’, warehousemen’s and mechanics’ Liens, statutory landlords’ Liens, and other
similar Liens arising in the ordinary course of the Company’s business, and which (x) do not individually or in the aggregate
materially detract from the value of such property or assets or materially impair the use thereof in the operation of the business
of the Company and its consolidated Subsidiaries or (y) are being contested in good faith by appropriate proceedings, which proceedings
have the effect of preventing for the foreseeable future the forfeiture or sale of the property or asset subject to such Lien,
(c) Liens incurred in connection with Permitted Indebtedness under clauses (a), (b) and (d)/(e) thereunder, (d) Liens incurred
in connection with Permitted Indebtedness under clause (c) thereunder, provided that such Liens are not secured by assets of the
Company or its Subsidiaries other than the assets so acquired or leased, (e) Liens in connection with equipment leases in effect
on the Original Issue Date, and (f) Liens in favor of the Florida Department of Revenue in effect on the Original Issue Date.

 

“Securities
Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“TCA
Notes” means the loans payable to TCA Global Master Fund, LP in the principal amount of $3,000,000 at 16% interest rate.

 

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“Tegal
Notes” means those certain notes payable to CommerceNet and Jay Tenenbaum in the original principal amount of $500,000.

 

“Trading
Market” means any of the following markets or exchanges on which the Common Stock is listed or quoted for trading on
the date in question: the NYSE MKT, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the
New York Stock Exchange, OTCQB, OTCQX or OTC Pink (or any successors to any of the foregoing).

 

Section
2. Interest. Commencing on August 17, 2019, this Debenture shall bear interest on the aggregate unconverted and then outstanding
principal amount of this Debenture at the rate of 2.5% per month (increasing to 5% per month on October 17, 2019), payable quarterly
on January 1, April 1, July 1 and October 1, beginning on October 1, 2019 and on the Maturity Date (each such date, an “Interest
Payment Date”) (if any Interest Payment Date is not a Business Day, then the applicable payment shall be due on the
next succeeding Business Day), in cash. Interest shall be calculated on the basis of a 30-day month periods, and shall accrue
daily commencing on August 17, 2019 until payment in full of the outstanding principal, together with all accrued and unpaid interest,
liquidated damages and other amounts which may become due hereunder, has been made. All overdue accrued and unpaid interest to
be paid hereunder shall entail a late fee at an interest rate equal to the lesser of 24% per annum or the maximum rate permitted
by applicable law (the “Late Fees”) which shall accrue daily from the date such interest is due hereunder through
and including the date of actual payment in full.

 

Section
3. Registration of Transfers and Exchanges.

 

(a)
Different Denominations. This Debenture is exchangeable for an equal aggregate principal amount of Debentures of different
authorized denominations, as requested by the Holder surrendering the same. No service charge will be payable for such registration
of transfer or exchange.

 

(b)
Investment Representations. This Debenture has been issued subject to certain investment representations of the original
Holder set forth in the Bridge Agreement and may be transferred or exchanged only in compliance with the Bridge Agreement and
applicable federal and state securities laws and regulations.

 

(c)
Reliance on Debenture Register. Prior to due presentment for transfer to the Company of this Debenture, the Company and
any agent of the Company may treat the Person in whose name this Debenture is duly registered on the Debenture Register as the
owner hereof for the purpose of receiving payment as herein provided and for all other purposes, whether or not this Debenture
is overdue, and neither the Company nor any such agent shall be affected by notice to the contrary.

 

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Section
4. Negative Covenants. As long as any portion of this Debenture remains outstanding, unless the holders of at least 67% in
principal amount of the then outstanding Debentures shall have otherwise given prior written consent, the Company shall not, and
shall not permit any of the Subsidiaries to, directly or indirectly:

 

(a)
other than Permitted Indebtedness, enter into, create, incur, assume, guarantee or suffer to exist any indebtedness for borrowed
money of any kind, including, but not limited to, a guarantee, on or with respect to any of its property or assets now owned or
hereafter acquired or any interest therein or any income or profits therefrom;

 

(b)
other than Permitted Liens, enter into, create, incur, assume or suffer to exist any Liens of any kind, on or with respect to
any of its property or assets now owned or hereafter acquired or any interest therein or any income or profits therefrom;

 

(c)
amend its charter documents, including, without limitation, its certificate of incorporation and bylaws, in any manner that materially
and adversely affects any rights of the Holder;

 

(d)
repay, repurchase or offer to repay, repurchase or otherwise acquire more than a de minimis number of shares of its Common
Stock or Common Stock Equivalents other than such securities of the Holders of the Debentures;

 

(e)
repay, repurchase or offer to repay, repurchase or otherwise acquire any Indebtedness, other than the Debentures if on a pro-rata
basis, except pursuant to their terms as such terms exist on the date hereof;

 

(f)
pay cash dividends or distributions on any equity securities of the Company;

 

(g)
enter into any transaction with any Affiliate of the Company which would be required to be disclosed in any public filing with
the Commission, unless such transaction is made on an arm’s-length basis and expressly approved by a majority of the disinterested
directors of the Company (even if less than a quorum otherwise required for board approval); or

 

(h)
enter into any agreement with respect to any of the foregoing.

 

Section
5. Events of Default.

 

(a)
“Event of Default” means, wherever used herein, any of the following events (whatever the reason for such event
and whether such event shall be voluntary or involuntary or effected by operation of law or pursuant to any judgment, decree or
order of any court, or any order, rule or regulation of any administrative or governmental body):

 

i.
any default in the payment of (A) the principal amount of any Debenture or (B) interest, liquidated damages and other amounts
owing to a Holder on any Debenture, as and when the same shall become due and payable (whether on the Maturity Date or by acceleration
or otherwise) which default, solely in the case of a default under clause (B) above, is not cured within 5 Business Days;

 

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ii.
the Company shall fail to observe or perform any other covenant or agreement contained in the Debentures or in the Bridge Agreement,
which failure is not cured, if possible to cure, within the earlier to occur of (A) 5 Business Days after notice of such failure
sent by the Holder or by any other Holder to the Company and (B) 10 Business Days after the Company has become or should have
become aware of such failure;

 

iii.
a default or event of default (subject to any grace or cure period provided in the applicable agreement, document or instrument)
shall occur under (A) the Bridge Agreement (and not covered by clause (i) or (ii) above) or (B) any material agreement, lease,
document or instrument to which the Company or any Subsidiary is obligated for more than $200,000 (and not covered by clause (vi)
below) that is not cured within 45 calendar days. For the purposes of clarification any existing defaults on the Tegal Notes,
the TCA Notes and the Senior Secured Original Discount Convertible Debentures due March 21, 2019 (collectively, the “Outstanding
Defaults”) that are cured within 45 calendar days of the Original Issue Date shall not be deemed an Event of Default,
(provided that in the event that the Outstanding Defaults are not cured within 45 calendar days of the Original Issue Date, the
Outstanding Defaults shall be deemed an Event of Default for the purposes of this section);

 

iv.
any representation or warranty made in this Debenture, any written statement pursuant hereto or thereto or any other report, financial
statement or certificate made or delivered to the Holder or any other Holder shall be untrue or incorrect in any material respect
as of the date when made or deemed made;

 

v.
the Company or any Significant Subsidiary (as such term is defined in Rule 1-02(w) of Regulation S-X) shall be subject to a Bankruptcy
Event;

 

vi.
the Company or any Subsidiary shall default on any of its obligations under any mortgage, credit agreement or other facility,
indenture agreement, factoring agreement or other instrument under which there may be issued, or by which there may be secured
or evidenced, any indebtedness for borrowed money or money due under any long term leasing or factoring arrangement that (a) involves
an obligation greater than $150,000, whether such indebtedness now exists or shall hereafter be created, and (b) results in such
indebtedness becoming or being declared due and payable prior to the date on which it would otherwise become due and payable;

 

vii.
the Common Stock shall not be eligible for listing or quotation for trading on a Trading Market and shall not be eligible to resume
listing or quotation for trading thereon within five Business Days;

 

viii.
the Company shall be a party to any Change of Control Transaction or shall agree to sell or dispose of all or in excess of 33%
of its assets in one transaction or a series of related transactions (whether or not such sale would constitute a Change of Control
Transaction); or

 

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ix.
any monetary judgment, writ or similar final process shall be entered or filed against the Company, any subsidiary or any of their
respective property or other assets for more than $200,000, and such judgment, writ or similar final process shall remain unvacated,
unbonded or unstayed for a period of 45 calendar days.

 

(b)
Remedies Upon Event of Default. If any Event of Default occurs, the outstanding principal amount of this Debenture, liquidated
damages and other amounts owing in respect thereof through the date of acceleration, shall become, at the Holder’s election,
immediately due and payable in cash at the Mandatory Default Amount. Commencing 5 days after the occurrence of any Event of Default
that results in the eventual acceleration of this Debenture, the interest rate on this Debenture shall accrue at an interest rate
equal to the lesser of 24% per annum or the maximum rate permitted under applicable law. Upon the payment in full of the Mandatory
Default Amount, the Holder shall promptly surrender this Debenture to or as directed by the Company. In connection with such acceleration
described herein, the Holder need not provide, and the Makers hereby waive, any presentment, demand, protest or other notice of
any kind, and the Holder may immediately and without expiration of any grace period enforce any and all of its rights and remedies
hereunder and all other remedies available to it under applicable law. Such acceleration may be rescinded and annulled by Holder
at any time prior to payment hereunder and the Holder shall have all rights as a holder of the Debenture until such time, if any,
as the Holder receives full payment pursuant to this Section 5(b). No such rescission or annulment shall affect any subsequent
Event of Default or impair any right consequent thereon.

 

Section
6. Miscellaneous.

 

(a)
Notices. Any and all notices or other communications or deliveries to be provided by the Holder hereunder, shall be in
writing and delivered personally, by facsimile, by email attachment, or sent by a nationally recognized overnight courier service,
addressed to the Makers, at the address set forth above, or such other facsimile number, email address, or address as the Makers
may specify for such purposes by notice to the Holder delivered in accordance with this Section 6(a). Any and all notices or other
communications or deliveries to be provided by the Makers hereunder shall be in writing and delivered personally, by facsimile,
by email attachment, or sent by a nationally recognized overnight courier service addressed to each Holder at the facsimile number,
email address or address of the Holder appearing on the books of the Company, or if no such facsimile number or email attachment
or address appears on the books of the Company, at the principal place of business of such Holder, as set forth in the Bridge
Agreement. Any notice or other communication or deliveries hereunder shall be deemed given and effective on the earliest of (i)
the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment
to the email address set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on any Business
Day, (ii) the next Business Day after the date of transmission, if such notice or communication is delivered via facsimile at
the facsimile number or email attachment to the email address set forth on the signature pages attached hereto on a day that is
not a Business Day or later than 5:30 p.m. (New York City time) on any Business Day, (iii) the second Business Day following the
date of mailing, if sent by U.S. nationally recognized overnight courier service or (iv) upon actual receipt by the party to whom
such notice is required to be given.

 

    	7

    	 

    

 

(b)
Absolute Obligation. Except as expressly provided herein, no provision of this Debenture shall alter or impair the obligation
of the Makers, which is absolute and unconditional, to pay the principal of, or liquidated damages on this Debenture at the time,
place, and rate, and in the coin or currency, herein prescribed. This Debenture is a direct debt obligation of the Makers.

 

(c)
Lost or Mutilated Debenture. If this Debenture shall be mutilated, lost, stolen or destroyed, the Makers shall execute
and deliver, in exchange and substitution for and upon cancellation of a mutilated Debenture, or in lieu of or in substitution
for a lost, stolen or destroyed Debenture, a new Debenture for the principal amount of this Debenture so mutilated, lost, stolen
or destroyed, but only upon receipt of evidence of such loss, theft or destruction of such Debenture, and of the ownership hereof,
reasonably satisfactory to the Makers.

 

(d)
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Debenture shall
be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the
principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement
and defense of the transactions contemplated by the Bridge Agreement (whether brought against a party hereto or its respective
Affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting
in the City of New York, Borough of Manhattan (the “New York Courts”). Each party hereto hereby irrevocably
submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith
or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any
suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such New York Courts, or such New
York Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process
and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified
mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Debenture
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any other manner permitted by applicable law. Each party hereto
hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal
proceeding arising out of or relating to this Debenture or the transactions contemplated hereby. If any party shall commence an
action or proceeding to enforce any provisions of this Debenture, then the prevailing party in such action or proceeding shall
be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred in the investigation, preparation
and prosecution of such action or proceeding.

 

    	8

    	 

    

 

(e)
Waiver. Any waiver by the Makers or the Holder of a breach of any provision of this Debenture shall not operate as or be
construed to be a waiver of any other breach of such provision or of any breach of any other provision of this Debenture. The
failure of the Makers or the Holder to insist upon strict adherence to any term of this Debenture on one or more occasions shall
not be considered a waiver or deprive that party of the right thereafter to insist upon strict adherence to that term or any other
term of this Debenture on any other occasion. Any waiver by the Makers or the Holder must be in writing.

 

(f)
Severability. If any provision of this Debenture is invalid, illegal or unenforceable, the balance of this Debenture shall
remain in effect, and if any provision is inapplicable to any Person or circumstance, it shall nevertheless remain applicable
to all other Persons and circumstances. If it shall be found that any interest or other amount deemed interest due hereunder violates
the applicable law governing usury, the applicable rate of interest due hereunder shall automatically be lowered to equal the
maximum rate of interest permitted under applicable law. The Makers covenant (to the extent that it may lawfully do so) that it
shall not at any time insist upon, plead, or in any manner whatsoever claim or take the benefit or advantage of, any stay, extension
or usury law or other law which would prohibit or forgive the Makers from paying all or any portion of the principal of this Debenture
as contemplated herein, wherever enacted, now or at any time hereafter in force, or which may affect the covenants or the performance
of this Debenture, and the Makers (to the extent it may lawfully do so) hereby expressly waive all benefits or advantage of any
such law, and covenants that it will not, by resort to any such law, hinder, delay or impede the execution of any power herein
granted to the Holder, but will suffer and permit the execution of every such as though no such law has been enacted.

 

(g)
Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Debenture
shall be cumulative and in addition to all other remedies available under this Debenture at law or in equity (including a decree
of specific performance and/or other injunctive relief), and nothing herein shall limit the Holder’s right to pursue actual
and consequential damages for any failure by the Makers to comply with the terms of this Debenture. The Makers covenant to the
Holder that there shall be no characterization concerning this instrument other than as expressly provided herein. Amounts set
forth or provided for herein with respect to payments, and the like (and the computation thereof) shall be the amounts to be received
by the Holder and shall not, except as expressly provided herein, be subject to any other obligation of the Makers (or the performance
thereof). The Makers acknowledge that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and
that the remedy at law for any such breach may be inadequate. The Makers therefore agree that, in the event of any such breach
or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to an injunction restraining
any such breach or any such threatened breach, without the necessity of showing economic loss and without any bond or other security
being required. The Makers shall provide all information and documentation to the Holder that is requested by the Holder to enable
the Holder to confirm the Makers’ compliance with the terms and conditions of this Debenture.

 

(h)
Next Business Day. Whenever any payment or other obligation hereunder shall be due on a day other than a Business Day,
such payment shall be made on the next succeeding Business Day.

 

(i)
Headings. The headings contained herein are for convenience only, do not constitute a part of this Debenture and shall
not be deemed to limit or affect any of the provisions hereof.

 

Section
7. Disclosure. Upon receipt or delivery by the Company of any notice in accordance with the terms of this Debenture, unless
the Company has in good faith determined that the matters relating to such notice do not constitute material, nonpublic information
relating to the Company or its Subsidiaries, the Company shall within two (2) Business Days after such receipt or delivery publicly
disclose such material, nonpublic information on a Current Report on Form 8-K or otherwise. In the event that the Company believes
that a notice contains material, non-public information relating to the Company or its Subsidiaries, the Company so shall indicate
to the Holder contemporaneously with delivery of such notice, and in the absence of any such indication, the Holder shall be allowed
to presume that all matters relating to such notice do not constitute material, nonpublic information relating to the Company
or its Subsidiaries.

 

*********************

 

(Signature
Page Follows)

 

    	9

    	 

    

 

 

IN
WITNESS WHEREOF, the Makers have caused this Debenture to be duly executed by a duly authorized officer as of the date first above
indicated.

 

COMPANY:

 

	 	RENNOVA
    HEALTH, INC.
	 	 
	 	By:	 
	 	Name:
    	Seamus
    Lagan
	 	Title:
    	Chief
    Executive Officer

 

	 	Email
    address for delivery of Notices:
	 	slagan@rennovahealth.com

 

JOINT
OBLIGOR:

 

	 	 
	Christopher
    Diamantis	 

 

    	10bicx_ex101.htm

EXHIBIT 10.1
 
	MSA 
	 
	Page 1 of 15

	BioCorRx, Inc.
	 
	 

 
CERTAIN IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS NOT MATERIAL AND WOULD LIKELY CAUSE COMPETITIVE HARM TO THE REGISTRANT IF PUBLICLY DISCLOSED. [***] INDICATES THAT INFORMATION HAS BEEN REDACTED.
 
MASTER SERVICES AGREEMENT
 
THIS MASTER SERVICES AGREEMENT is made as of this 24th day of May, 2019 (the “Effective Date”) by and between Charles River Laboratories, Inc., a Delaware corporation, with a business address at 251 Ballardvale Street, Wilmington, Massachusetts 01887, and its affiliates, including without limitation, those set forth on Exhibit A attached hereto and made a part hereof (“Company”) and BioCorRx, Inc., a Delaware corporation, with a business address at 2390 E. Orangewood Ave., Suite 575, Anaheim, CA 92806 USA (“Sponsor”).
 
BACKGROUND
 
Company is a contract research organization engaged in providing products and services including without limitation, discovery and development services, preclinical testing services, scientific and regulatory consulting, and research models and related services. Sponsor desires Company to provide, and Company agrees to provide, the services described in this Agreement (the “Services”) pursuant to the terms and conditions of this Agreement. The Services shall consist of conducting individual studies or consultations (each, a “Study”) defined in the SOW (as hereinafter defined). 
 
In consideration of the mutual promises and covenants set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, intending to be legally bound, agree as follows:
 
1. The Study. Company shall render the Services as set forth in a Protocol and/or Statement of Work, Project Addendum, Letter of Agreement, Letter of Commitment, Work Order, Purchase Order or Consulting Services Letter (collectively referred to here as the “SOW”). A “Protocol” and/or “Statement of Work” and/or “Project Addendum” shall mean an attachment to this Agreement describing the nature, design and scope of the Study and the schedule of work to be performed or consulting services to be provided during the course of an individual Study conducted by Company for the Sponsor, and in the case of a Statement of Work/Project Addendum also sets forth the price, fees and payment schedule. A “Letter of Agreement”, “Work Order” or “Purchase Order” shall mean an attachment to this Agreement that describes with respect to a particular Study the price, fees and payment schedule for that Study and any modifications of the terms of this Agreement as applied to a particular Study. A “Letter of Commitment” shall mean an attachment to this Agreement that describes a commitment of space and resources by Company. A Consulting Services Letter shall mean an attachment to this Agreement that describes Company’s consulting services and pricing for such services. In the event of a conflict between the terms contained in the SOW and this Agreement, the terms of this Agreement shall control, unless specifically agreed upon to the contrary in the SOW. The SOW when signed by Company and Sponsor shall be incorporated into and made a part of this Agreement. 
 
2. Conduct of Services. 
 
2.1. Company will maintain industry standards of professional conduct in the performance of the Services and in the preparation of all related reports. Company and Sponsor will adhere to all material government laws, rules and regulations applicable to the Services (“Applicable Law”). If applicable, and as set forth in the SOW, Company will perform the Study in compliance with the current good laboratory practices or the current good manufacturing practices of the appropriate governmental regulatory agencies.
 
2.2. In addition to the terms and conditions contained herein, all purchases of research models and services related thereto shall be made in accordance with the terms and conditions set forth on Exhibit B attached hereto and made a part hereof.
  
	 
	 
	
 
	 

 
	MSA 
		Page 2 of 15

	BioCorRx, Inc.
		

 
2.3. Company will perform the Services in accordance with the SOW, which may be amended from time to time upon the mutual agreement of Company and Sponsor. Company agrees not to intentionally change or deviate in any material manner from the SOW without Sponsor’s prior approval. Deviations from the SOW may be made in an emergency without Sponsor’s approval, provided that Company shall use commercially reasonable efforts to obtain Sponsor’s verbal approval, which shall be subsequently confirmed by Sponsor in writing. The parties acknowledge that during the course of performing the Study in accordance with the SOW, additional costs may be incurred by Company as a result of procedural changes which do not amount to or require a change in the SOW, but which are deemed necessary by Company to successfully perform said Study, and which could not be foreseen at the time of the preparation of the SOW. If such procedural changes occur, Company shall advise the Sponsor prior to their implementation and solicit the Sponsor's agreement as to the necessity and additional cost thereof. Should Company be unable to contact the Sponsor in advance, the Sponsor agrees that in order to maintain the integrity of the Study, Company may proceed accordingly and be entitled to recover such additional costs, provided such costs do not exceed 5% of total Study cost, from the Sponsor upon presentation of an explanation of such procedural changes and the necessity thereof  
2.4. Nothing in this Agreement prevents Company from carrying out similar services for any other party, provided that such services will not conflict with the provision of Services under this Agreement, including, but not limited to, using any of Sponsor’s Confidential Information or Intellectual Property (as defined below).
 
2.5. Company may subcontract any part of the Services to a third party provided that:
 
	 
	(i)	such subcontracted Services are agreed in the relevant SOW ;
	 
	 
	 

	 
	(ii)	such Services are performed in accordance with this Agreement, Applicable Law, and the relevant SOW; and
	 
	 
	 

	 
	(iii)	Company shall remain fully responsible to the Sponsor for the performance of such Services.
	 
	 
	 

	 
	(iv)	Any third party subcontract by Company shall agree in writing to comply with the terms and conditions of this Agreement and any applicable SOW.
	 
	 
	 

	 
	In the event that Company subcontracts any part of the Services to an affiliated entity, invoices for such Services may be issued to the Sponsor directly by the affiliated entity in the currency specified in the relevant SOW or as otherwise agreed in writing between the parties. The Sponsor shall pay such invoices directly to the relevant affiliated entity.

 
3. Test Articles. If applicable, Sponsor will provide Company with sufficient amounts of all compounds, materials, or other substances meeting relevant specifications (“Test Articles”) with which to perform the Services, together with such complete and accurate data as is necessary to apprise Company of the identity, strength, purity, stability and composition or other appropriate characteristics of each batch, proper storage and safe handling requirements of the Test Articles, including a Material Safety Data Sheet (MSDS) or equivalent documentation. In addition, if applicable, Sponsor will provide Company certification that the methods of synthesis, fabrication, or derivation of the Test Article had been documented by the Sponsor. All costs associated with shipping the Test Articles to Company shall be the responsibility of Sponsor, and Company shall not be responsible for any loss, damage or destruction of the Test Articles while in transit. The import and export of technical data or Test Articles may be subject to the receipt of any necessary import and/or export licences, permits or consents by the importing and/or exporting party. Sponsor shall not provide or send to Company any Test Articles until Company notifies Sponsor that all required licenses, consents and permissions have been received by Company. 
 
4. Personnel. Company will arrange for experienced, qualified and appropriately licensed personnel to support and perform Company’s obligations under this Agreement. To the best of Company’s knowledge, Company represents that none of its employees who are to participate in a Study have been debarred and none of such employees are under consideration to be debarred by the Food and Drug Administration from working in or providing services to any pharmaceutical or biotechnology company under the Generic Drug Enforcement Act of 1992, as amended. 
 
	 
	 
	
 
	 

 
	MSA 
		Page 3 of 15

	BioCorRx, Inc.
		

 
5. Inspections.
 
5.1 . Upon reasonable advance notice, Company will permit Sponsor and/or its designated representatives (provided such representatives are not competitors of Company), during normal business hours and at mutually agreeable times, to visit the Company facilities where the Services are being provided to monitor Company’s performance of the Services. 
 
5.2. Company will notify Sponsor as soon as practical in the event of any regulatory inspection of Company’s facilities that directly impacts the performance of the Services or a Study. In the event of an inspection of Sponsor’s Study by a regulatory or administrative agency, Company will, to the extent permissible under Applicable Law, consult with and allow Sponsor to review and comment on any responses to such agency related to the inspection, provided however the final response shall be in Company’s sole discretion.
 
5.3. To the extent that Sponsor engages a third party to perform any services related to a Study, Sponsor shall provide all information requested by Company regarding such services, including, without limitation, all information regarding regulatory and quality assurance sufficient to enable Company to comply with its own regulatory and/or quality assurance obligations. If any study activities are subcontracted by Sponsor, Sponsor will be responsible for qualification of these subcontractors to assure they meet all required standards and regulations. 
 
6. Records and Reports.
 
6.1. Company will keep complete and accurate records of the status and progress of the Study as required by the SOW.
 
6.2. Provided that the Sponsor is not in default hereunder or under any of the SOW, Company will furnish a report or data containing information specified in the SOW. All reports will be prepared in the standard format of the Company unless otherwise specified in the SOW or as otherwise agreed to by the parties.
 
6.3 . All raw data, study documentation, protocols, interim and final reports, specimens generated as a result of a preclinical Study are the Sponsor’s property. At Sponsor’s cost and expense, if Applicable Law or Sponsor requires Sponsor’s property to be held by Company, Company shall store Sponsor’s property as agreed upon in the SOW and in accordance with Company’s standard archiving terms and conditions set forth on Exhibit C attached hereto and made a part hereof. Upon reasonable advance notice, provided that the Sponsor is not in default hereunder or under any of the SOW, Sponsor shall have reasonable access to such material, and shall have the right to obtain photocopies of the raw data and supporting documentation, at Sponsor’s expense.
 
6.4 . In the event Company provides electronic access to the Services or Study data, records, reports and other documentation and Sponsor elects to use such electronic access, the use of such electronic access shall be governed by Company’s standard electronic access terms and conditions which may be accessed via Company’s website. 
 
7. Compensation. 
 
7.1. Sponsor will pay Company as set forth in the SOW (“Study Price”). All invoices are due and payable thirty (30) daysfrom the date of the invoice, and Sponsor agrees to pay all undisputed invoices submitted. All amounts will be in USD unless otherwise set forth in the SOW. Company may elect to cease or suspend the Services on a Study or withhold required reports or other deliverables if the Sponsor does not make payments when due and payable on any undisputed invoice. 
 
If Sponsor has a good faith dispute regarding a Company invoice submitted to Sponsor, Sponsor may withhold payment for the disputed services, provided that Sponsor pays the undisputed amount and notifies Company in writing of the specific amount and nature of the dispute within thirty (30) days from the date of Company’s invoice.
 
7.2. All applicable termination, delay, suspension or cancellation fees will be set forth in the SOW.
 
7.3. All Value Added Taxes, sales taxes and any other taxes required by Applicable Law shall be paid by Sponsor.
 
	 
	 
	
 
	 

 
	MSA 
		Page 4 of 15

	BioCorRx, Inc.
		

 
8. Confidentiality. 
 
8.1 The parties may exchange proprietary and confidential information during the term of this Agreement, including without limitation, the existence and terms of this Agreement. The parties will identify, in writing, such information as confidential and/or proprietary. If a party intends to disclose confidential information to the other party orally, the disclosing party shall (i) alert the other party of the confidential nature of the disclosure prior to the disclosure and (ii) provide written notice to the other party of the confidential nature and contents of such disclosure within ten (10) days of the original disclosure. Notwithstanding the foregoing, information which is orally or visually disclosed to the receiving party by the disclosing party, or is disclosed in writing without an appropriate letter, proprietary stamp or legend, shall constitute confidential information, provided that the confidential nature of such information would be apparent to a reasonable person, familiar with the disclosing party’s business and industry in which it operates. Each party will use its commercially reasonable efforts to maintain such information in confidence and will employ reasonable and appropriate procedures to prevent its unauthorized publication or disclosure. Except as expressly authorized in writing, neither party shall use the other party’s proprietary or confidential information for any purpose other than in performance of this Agreement. In the event of site visits to the other party’s facilities, each party agrees to protect any confidential information with which each party’s representatives may come in contact, by any means and for whatever purpose, during visits to the other party’s facilities. Each party agrees to communicate the substance of this provision to any of its employees and representatives that will be visiting the other party’s facilities. The obligations of confidentiality set forth in this Section 8 will survive the termination or expiration of this Agreement for a period of five (5) years. 
 
8.2. The confidentiality provisions of this Section 8 shall not apply to any part of such information, which:
 
	 
	a)	is known to the receiving party at the time it was obtained from the disclosing party;
	 
	 
	 

	 
	b)	is acquired by the receiving party from a third party, and such third party did not obtain such information directly or indirectly from the disclosing party under an obligation not to disclose;
	 
	 
	 

	 
	c)	is or becomes published or otherwise in the public domain other than by violation of this Agreement by the receiving party;
	 
	 
	 

	 
	d)	is independently developed by the receiving party without reference to or reliance upon the information provided by the disclosing party; or
	 
	 
	 

	 
	e)	is required to be disclosed by the receiving party to comply with applicable laws or governmental regulations; provided that the receiving party provides prompt written notice of such disclosure to the disclosing party and cooperates with the disclosing party’s reasonable and lawful actions to avoid and/or minimize the extent of such disclosure.

 
8.3. The parties agree that confidential information is not deemed to be in the public domain merely because any part of the information is embodied in general disclosures or because individual features, components, or combinations are now, or become, known to the public.
 
8.4. Transfer, storage, use and processing of personal data shall be made in accordance with the Data Protection Exhibit D attached hereto and made a part hereof.
 
8.5. Nothing in this Agreement shall be construed as providing, granting, transferring or conveying any license, right, title or interest in the Confidential Information of a party to the other party. Upon termination of this Agreement, each party agrees to return and/or destroy any Confidential Information of the other party in its possession, except that a party shall not be required to delete, erase, return or destroy any Confidential Information that may reside on a party’s electronic archival system (e.g., back-up tapes, etc.) or required to be retained by the party by Applicable Law, other than one copy which the receiving party must retain for the purpose of demonstrating compliance with terms and conditions of this Agreement..
 
	 
	 
	
 
	 

  	MSA 
		Page 5 of 15

	BioCorRx, Inc.
		

  9. Use of Names. 
 
Neither party will use the other party’s name or the name of any employee of the other party in any advertising, packaging, promotional material, or any other publicity relating to this Agreement, without the prior written approval of the other party. 
 
10. Warranties. 
 
10.1. Sponsor warrants that it owns all rights, title and interest in or otherwise has the right to use the Test Articles and the intellectual property related thereto, that no intellectual property rights of any third party were infringed in making such Test Articles or providing such Test Articles to Company, and that Company’s use of any and all such Test Articles in connection with any Study will not knowingly infringe the intellectual property rights of any third party. In the event the Services require the use of commercially available compounds, Test Articles, or a target which has been specifically requested by the Sponsor, the Sponsor agrees that Company has no liability to the Sponsor in respect of any infringement or alleged infringement of third party intellectual property rights. Company warrants that it owns all rights, title and interest in or otherwise has the right to use any and all processes, procedures, equipment and materials/supplies and the intellectual property related thereto, that to the best of its knowledge, after reasonable inquiry no intellectual property rights of any third party will be infringed in performing the Services and that Sponsor’s use of any and all results, reports or other deliverables under a SOW in connection with the Service will not knowingly infringe the intellectual property rights of any third party. The Company agrees that the Sponsor has no liability to the Company in respect of any breach of the warranty set forth above..
 
10.2. Company warrants that the Services shall conform to the specifications or descriptions set forth in the SOWS, Applicable Law and the current material applicable standards, regulations and procedures of the appropriate regulatory agencies. Company does not warrant or represent that the results of the Study will be acceptable to any regulatory or governmental agency to which they are presented, that the results of the Study will enable the Sponsor to further develop, market or otherwise exploit the Test Articles or any other product or service. The results of the Services shall not be used for human or veterinary diagnostic or therapeutic purposes. This Agreement is to carry out experimental research and for the use of experimental materials whose properties and safety may not have been established. Accordingly, specific results cannot be guaranteed and any delivered items provided by Company to the Sponsor under this Agreement are provided ‘AS IS’ and without any express or implied warranties, representations or undertakings, except as set forth above.
 
10.3. THE WARRANTY BY COMPANY SET FORTH IN SECTION 10.2 ABOVE IS IN LIEU OF ANY AND ALL OTHER REPRESENTATIONS OR WARRANTIES, EXPRESS, IMPLIED OR STATUTORY INCLUDING, WITHOUT LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR FOR NON-INFRINGEMENT OF A PATENT, TRADEMARK OR OTHER INTELLECTUAL PROPERTY RIGHT. 
 
11. Limitation of Liability. 
 
11.1. Neither party will be liable for penalties or liquidated damages or for special, indirect, consequential, punitive, exemplary or incidental damages of any type or kind (including, without limitation, lost profits) regardless of whether any such losses or damages are characterized as arising from breach of contract, breach of warranty, tort, negligence, strict liability or otherwise, even if the party is advised of the possibility of such losses or damages, or if such losses or damages are foreseeable. 
 
11.2. Except as required under a party’s obligation to indemnfity the other party under this Agreement, a partyeach party’s liability under this Agreement, regardless of the form of action, shall be limited to actual damages and shall not exceed the total amount paid for the SOW under which such liability arises. 
 
11.3. In the event that the Company commits a breach of the warranty set forth in Section 10.2 above, Company’s sole liability, and Sponsor’s sole remedy shall be for Company a) to conform, at Company’s cost and expense, the affected work or portion of the research affected by the breach to the relevant specification or b) issue a credit or refund of all amounts paid for the affected work or portion of the research affected by the breach to the relevant specification including Sponsor’s documented costs related to the Services, provided in no event shall such amount exceed twice the total amount paid for the SOW under which such liability arises.
 
	 
	 
	
 
	 

 
	MSA 
		Page 6 of 15

	BioCorRx, Inc.
		

 
12. Indemnities.  
12.1. Notwithstanding the limitations of liability contained in Section 11 above, Company will defend, indemnify, save and hold harmless Sponsor and its parent, subsidiaries and affiliates and their respective directors, officers, employees and agents from and against any claims, demands, suits, actions, causes of action, losses, damages, fines and liabilities, including without limitation reasonable attorneys’ fees and any costs and expenses associated with each party’s compliance with a subpoena or other similar legal request related to the Services or a Study (“Claims”) arising out of or in connection with or attributable to Company’s negligence or willful misconduct; (ii) breach of this Agreement or any SOW; and (iii) failure to comply with any Applicable Law, and will pay any costs and damages which may be assessed against them, provided that Company is given written notice of the Claims within five (5) days of the date of notice to Sponsor and is given information, reasonable assistance, and sole authority to defend and/or settle the claim.
 
12.2. Notwithstanding the limitations of liability contained in Section 11 above, Sponsor will defend, indemnify, save and hold harmless Comapny and its parent, subsidiaries and affiliates and their respective directors, officers, employees and agents from and against any claims, demands, suits, actions, causes of action, losses, damages, fines and liabilities, including without limitation reasonable attorneys’ fees and any costs and expenses associated with each party’s compliance with a subpoena or other similar legal request related to the Services or a Study (“Claims”) arising out of or in connection with or attributable to Sponsor’s (i) future use development and disposition of the Test Articles and/or any other substances upon which the Services of Company were performed, or (ii) any infringement of any third party’s patent rights or unauthorized use or misappropriation of its know-how related to the Test Articles, (iii) negligence or willful misconduct; (iv) failure to comply with any Applicable Law, and will pay any costs and damages which may be assessed against them, provided that Sponsor is given written notice of the Claims within five (5) days of the date of notice to Sponsor and is given information, reasonable assistance, and sole authority to defend and/or settle the claim.
 
12.3. Nothing in this Agreement shall exclude a party’s liability for any liability which cannot be excluded or restricted by Applicable Law.
 
13. Ownership. Any inventions, techniques and/or compounds utilised for carrying out the Services hereunder which relate to the conduct of Company’s business are and shall remain Company’s exclusive property, including but not limited to; present and future documentation, scientific and technical data, test procedures and other information that is owned or licensed by Company and that is not developed hereunder. Subject to the terms and conditions hereof, Company shall have the right to use concurrent control data as part of its general historical database. Any data, discoveries or inventions developed or generated pursuant to this Agreement which directly relate to any information or materials provided by Sponsor hereunder, including without limitation new data, uses, processes or compositions directly relating to the information or materials provided hereunder shall be the exclusive property of Sponsor. Company acknowledges and agrees it shall have no right, ownership, title or interest in any intellectual property of Sponsor that was Sponsor’s prior to the date of this Agreement, that was provided to Company by Sponsor during the term of this Agreement and any of the results and/or deliverables provided to Sponsor by Company under any SOW or Study. Company agrees to assist Sponsor in securing for Sponsor any patents, copyrights or other proprietary rights in such data, discoveries or inventions, and to perform all acts that may be reasonably required to vest in Sponsor all right, title and interest in such data, discoveries or inventions, and Company shall be compensated for such assistance. All costs and expenses associated with establishing Sponsor’s rights therein shall be Sponsor’s responsibility.
 
	 
	 
	
 
	 

 
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14. Insurance. Each party shall carry and provide to the other upon request, a copy of its insurance certificate evidencing insurance sufficient to cover its interest or potential liabilities hereunder including, but not limited to worker’s compensation, if applicable, and comprehensive general liability.  
15. Force Majeure. Except with respect to the payment of monies due hereunder, neither party shall be considered in default of the performance of any obligation hereunder to the extent that the performance of such obligation is prevented or delayed by fire, flood, earthquake, hurricane, explosion, disease, contamination, strike, acts of terrorism, war, insurrection, embargo, government requirement, civil or military authority, act of God, or any other event, occurrence or condition which is not caused, in whole or in part, by that party, and which is beyond the reasonable control of that party.
 
16. Term and Termination. 
 
16.1. This Agreement will commence on the Effective Date and will continue for five (5) years from the Effective Date or until terminated by the parties as set forth below.
 
16.2. Sponsor shall have the right to terminate an on-going Study or Services at any time without cause upon thirty (30) days prior written notice to Company. In the event a Study or Services is terminated without cause, Company shall be paid for all Services rendered through the effective date of termination, together with any additional commercially reasonable expenses incurred in connection with the shutdown of the Services or Study including without limitation any irrevocably committed costs, together with the applicable termination fee set forth in the SOW. 
 
16.3. Either party may terminate this Agreement, with or without cause, upon sixty (60) days’ notice to the other party,. 
 
16.4. Either party may terminate this Agreement at any time upon thirty (30) days prior written notice to the other party, for material breach of this Agreement by the other party if such breach is not remedied to the non-breaching party’s reasonable satisfaction within the thirty (30) day notice period.
 
16.5. Upon termination, neither party will have any further obligations under this Agreement, except that (i) the liabilities accrued through the date of termination and (ii) the obligations which by their terms survive termination, including the applicable confidentiality, record keeping, regulatory compliance, intellectual property and indemnification provisions of this Agreement, shall survive termination.
 
17. Employee Solicitation. Each party agrees that, during the term of this Agreement and for a period of one hundred eighty (180) days thereafter, a Party will not solicit for hire or hire as an employee, or engage as an independent contractor, any person who is employed or contracted with the other party, without the prior written consent of the other party provided however that this prohibition shall not apply to a general solicitation not targeted at the other party. 
 
18. Dispute Resolution. The parties shall attempt, in good faith, to resolve through negotiations any controversy, claim, or dispute arising out of this Agreement. In the event that negotiations are not successful, the controversy, claim or dispute shall be submitted to third party mediation upon terms reasonably acceptable to the parties. If such claim, controversy or dispute is not resolved through mediation, upon written demand of either party, the claim, controversy or dispute shall be submitted to arbitration. Such arbitration shall take place in the State of Delaware, and shall proceed in accordance with the laws of such jurisdiction and the Commercial Arbitration Rules of the American Arbitration Association or if the parties so elect, the Rules of the United Nations Commission on International Trade Law Model Law on International Commercial Arbitration. A record and transcript of the proceedings shall be maintained. Any award shall be made in writing and in reasonable detail, setting forth the findings of fact and conclusion of law supporting the award. The determination of a majority of the panel of arbitrators shall be the decision of the arbitrators, which shall be binding regardless of whether one of the parties fails or refuses to participate in the arbitration. The decision shall be enforceable by a court of law, provided that the decision is supported by substantial fact and is without material error of law. All costs of such arbitration, except expert fees and attorneys’ fees, shall be shared equally by the parties. 
 
	 
	 
	
 
	 

 
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  19. Miscellaneous. 
 
19.1. Notices. All notices from one party to the other will be in writing and will be delivered by addressing the same, if to Company, to the applicable address set forth on Exhibit A and, if to Sponsor, to the address first set forth above, or at such other address as either party may specify in writing to the other. Notices shall be sent by overnight courier, certified mail, return receipt requested, or by other means of delivery requiring a written acknowledged receipt. All notices shall be effective upon receipt.
 
19.2. Independent Contractor. The business relationship of the Company to the Sponsor is that of an independent contractor and not of a partner, joint venturer, employer, employee or any other kind of relationship. Company will be solely responsible for expenses and liabilities associated with the employment of its employees.
 
19.3. Assignment. This Agreement, and the rights and obligations hereunder, may not be assigned or transferred by either party without the prior written consent of the other party, except that either party may assign this Agreement to an affiliated company or in connection with the merger, consolidation or sale of substantially all assets related to the Services or Study.
 
19.4. Entire Agreement. This Agreement, together with the SOW, sets forth the entire agreement and understanding between the parties, superseding any and all previous statements, negotiations, documents agreements and understandings, whether oral or written, as to the subject matter of the Agreement. No modification or waiver of the provisions of this Agreement shall be valid or binding on either party unless in writing and signed by both parties. No waiver of any term, right or condition under this Agreement on any one occasion shall be construed or deemed to be a waiver or continuing waiver of any such term, right or condition on any subsequent occasion or a waiver of any other term, right or condition hereunder.
 
19.5. Severability. In the event that any one or more of the provisions contained in this Agreement is for any reason held to be invalid, illegal or unenforceable in any respect, that invalidity, illegality or unenforceability will not affect any other provisions of this Agreement, and all other provisions will remain in full force and effect. If any provision of this Agreement is held to be excessively broad, it will be reformed and construed by limiting and reducing it so as to be enforceable to the maximum extent permitted by law.
 
19.6. Applicable Law. This Agreement will in all events and for all purposes be governed by, and construed in accordance with, the laws of State of Delaware without regard to any choice of law principle that would dictate the application of the law of another jurisdiction.
 
19.7. Recoverable Expenses. In the event any legal action is instituted to enforce any of the terms and provisions of the Agreement, the prevailing party in such legal action shall be entitled to recover all of its attorney’s fees and all other costs of litigation.
 
19.8. Counterparts. This Agreement may be executed in counterparts, each of which is deemed an original, but all of which together are deemed to be one and the same agreement. Each party agrees that electronic signatures, whether digital or encrypted, of the parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signatures means any electronic sound, symbol or process attached to or logically associated with a record and executed and adopted by a party with the intent to record, including facsimile, PDF or email electronic signatures.
 
19.9. Language of Agreement. The parties acknowledge that it is their express wish that this Agreement and all notices and other documents to be given or executed pursuant hereto be in English. 
 
	 
	 
	
 
	 

 
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  IN WITNESS WHEREOF, duly authorized representatives of the parties have executed and delivered this Agreement as of the Effective Date.
 
	Charles River Laboratories, Inc.
		BioCorRx, Inc. 
	 

	 
	 
	 
	 

	By:
		By:
	 

	duly authorized
	 
	duly authorized
	 

	 
	 
	 
	 

	Print Name: 
		Print Name: 
	 

	 
	 
	 
	 

	Title: 
	 
	Title: 
	 

	 
	 
	 
	 

	Date: 
		Date:
	 

 
	 
	 
	
 
	 

 
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  EXHIBIT A 
 
Work may be conducted by any of the following Charles River Laboratories locations:
 
[***]
 
 
 
 
  	 
	 
	
 
	 

 
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[***]
 
 
 
 
 
	 
	 
	
 
	 

 
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EXHIBIT B 
 
ADDITIONAL TERMS AND CONDITIONS RELATING TO 
THE SUPPLY OF RESEARCH MODELS (“Products”) AND RESEARCH MODEL SERVICES (“Services”).
 
1. Provision of the Products and Conduct of the Research. Any Products purchased from Company shall be used by Sponsor in a safe manner, and in accordance with Applicable Law. Sponsor, including its employees, agrees that all animals purchased from Company, descendants of those animals derived by inbreeding or crossbreeding, including unmodified derivatives of those animals or their descendants (“Animals”) shall not be: (i) used for any purpose other than the internal research of the Sponsor, (ii) bred for sale or otherwise or provided to any third party for any use, or (iii) provided to any agent or other third party to provide breeding or other services with respect to such Animals, unless Company provides Sponsor with prior written authorization for deviation from these terms and conditions. Sponsors should not, without the prior consent of Company, return animals or shipping containers to Company. 
 
2. Acceptance of Products and Services. 
Any claim for breach of the warranty in this Agreement must be made in writing to Company within ten (10) business days after the Products are delivered or the completion of Services, after which time the Products or Services shall be deemed finally accepted. Risk of loss and title to the Products shall pass to Sponsor once the Products leave Company’s facility or are delivered to a common carrier, as applicable. 
 
3. Use of Products. 
The purchase of any Products conveys to the Sponsor the non-transferable, non-sublicensable, non-exclusive right to internally use the Product and the components of the Products only in research conducted by the Sponsor and specifically in accordance with the SOW provided with the Products. The Sponsor cannot sell or otherwise transfer to a third party the Products or its components for Commercial Purposes. “Commercial Purposes” means any activity for cash or other consideration, including but not limited to (1) use of the Products or its components or materials made using the Products or its components in manufacturing, or to provide a service, information or data, or for clinical, therapeutic, diagnostic or prophylactic purposes or (2) resale of the Products or its components or materials made using the product or its components, except by licensed distributors, whether or not resold for use in research. The foregoing limitations are required by Company given the nature of the products sold, and to the extent that Company owns or controls (with the right to sublicense) patent rights or other intellectual property rights applicable to the Products or its intended use, those rights are licensed to Sponsor on a limited, revocable, non-exclusive, non-transferable and non-sublicensable basis only for the uses expressly permitted above for the Products purchased. Diagnostic products and services provided by Company are not for use in human or clinical diagnostics, and have not been so approved by regulatory agencies. Sponsor may not resell Product or any derivative thereof or reverse engineer any of Company’s products. If Sponsor fails to comply with the foregoing limitations, in addition to any other remedies available to Company, the warranty provided for Products will be automatically voided.
 
4. Price. 
Unless otherwise agreed between the Parties in writing, prices will be as per the price list (if applicable, price of Products is based on highest weight range) on the day of delivery, and they do not include applicable taxes, packaging, insurance or shipment expenses.
 
5. JAXTM Mice
The sale by the Company of JAXTM Mice will be governed by the terms and conditions of The Jackson Laboratory, which can be found at http://www.jax.org/about-us/legal-information/terms-and-conditions-of-product-use.
 
	 
	 
	
 
	 

 
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  EXHIBIT C 
 
ARCHIVE TERMS AND CONDITIONS
 
	1.	All raw data, samples, products, tissues, cell banks, study documentation, protocols, interim and final reports, specimens generated as a result of a preclinical Study that the Sponsor requests be held in Company’s archive facility or that Applicable Law requires be held in Company’s archive facility shall hereinafter be referred to as “Materials”. Company agrees to comply with industry standards in connection with the storage of the Materials and adhere to all Applicable Law with respect to the storage of the Materials.
	 
	 

	2.	Company shall store the Materials at its current storage rates, which may be increased on an annual basis. If the Materials require additional and/or special storage requirements, additional charges for storage shall be assessed and invoiced to Sponsor. Invoices shall be due and payable ten (10) days from the date of the invoice and Sponsor agrees to pay all invoices submitted.
	 
	 

	3.	Company’s liability for archival services under this Agreement, regardless of the form of action, shall not exceed the fee paid for one year’s storage of the Materials.
	 
	 

	4.	The Materials shall be archived for the period set forth in the SOW (the “Retention Period”). Upon the expiration of the Retention Period, Company shall contact Sponsor to determine disposition of the Materials as follows: (a) extended storage of the Materials; (b) return of the Materials to Sponsor at Sponsor’s expense to be archived in accordance with Applicable Law or (c) where offered by Company , disposal of Materials at Sponsor’s expense. If Sponsor requests Company to continue to store the Materials and Company agrees, the cost for storage of the Materials shall continue to be invoiced to Sponsor at Company’s then current rates. If Sponsor fails to give such instructions, Company shall so notify Sponsor, and if such instructions are still not forthcoming within thirty (30) days of said notification, then Company shall have the option of (i) continuing storage of the Materials, which will be deemed to have been authorized for an additional period of not less than one (1) year, or (ii) returning the Materials to Sponsor at Sponsor’s expense or (iii) disposing of the Materials at Sponsor’s expense provided regulatory retention periods have expired. If Sponsor intends to go out of business or to transfer ownership of the Materials Sponsor will provide notice to Company with instructions for disposition of the Materials. If Sponsor fails to give such instructions, Company shall dispose of the Materials at Sponsor’s expense provided the retention periods defined in this Section have expired. Sponsor agrees that Company shall have access to the Materials at all times in order to comply with applicable law. Sponsor shall be liable for storage charges until the Materials are returned to Sponsor. At any time while the Materials are in transit to Sponsor, all risk of loss or exposure to the Materials shall be borne by Sponsor.
	 
	 

	5.	Company will not release the Materials to any third party, without Sponsor's written permission unless such disclosure is compelled by valid subpoena or Applicable Law. If such disclosure is requested, Company shall use its commercially reasonable efforts to provide Sponsor with written notice prior to such release. Prior to release or inspection of any Materials by Sponsor or its agents, Sponsor shall provide all reasonable documentation requested by Company.

 
 
	 
	 
	
 
	 

 
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EXHIBIT D 
 
DATA PROTECTION ADDENDUM – BUSINESS CONTACT DETAILS
 
	1.1. 	The Parties acknowledge that each of them may process Personal Data in connection with this Agreement. As used herein, the term ‘Personal Data’ and ‘Sensitive Personal Data’ shall have the meanings given to them in the General Data Protection Regulation 2016/679 (collectively, with any applicable Member State data protection laws, and as amended from time to time, the “EU Data Protection Laws”).
	 
	 

	1.2. 	The Parties anticipate that the Personal Data disclosed to each other in connection with this Agreement will consist solely of the names and contact details of their respective personnel who are involved in the performance or administration of this Agreement. Each Party represents and warrants to the other Party that it is authorized to disclose or transfer the Personal Data of its personnel (including its employees and consultants) to the other Party and has obtained the express consent of the relevant data subjects in relation thereto, or otherwise has an appropriate basis for such disclosure or transfer under applicable law.
	 
	 

	1.3 	Company acknowledges that Sponsor shall hold and process the Personal Data of Company’s personnel contained in this Agreement and all related Statements of Work, or otherwise received from Company or its Affiliates in connection with this Agreement, in its global contract database for the purpose of administering and managing all Sponsor contracts, and that such Personal Data shall be transferred to affiliates within and outside the EU/EEA. Such Personal Data shall be processed in accordance with EU Data Protection Laws and other applicable laws. Company’s personnel may request access to, rectification of, deletion of, or restricted processing of, their respective Personal Data at any time by communicating such request to Sponsor via Company. In the event that Sponsor rejects or only partially complies with such request, Sponsor shall communicate the basis under EU Data Protection Laws for such rejection or partial compliance both to the data subject and to Company (unless disclosure to Company is inconsistent with the data subject’s rights).
	 
	 

	 
	Sponsor acknowledges that Company shall hold and process the Personal Data of Sponsor’s personnel contained in this Agreement and all related Statements of Work, or otherwise received from Sponsor or its Affiliates in connection with this Agreement in its global IT systems for the purpose of administering, managing and performing the Agreement, and that such Personal Data may be transferred to Company’s Affiliates within and outside the EU/EEA. Such Personal Data shall be processed in accordance with EU Data Protection Laws and other applicable law. Sponsor’s personnel may request access to, rectification of, deletion of, or restricted processing of, their respective Personal Data at any time by communicating such request to Company via Sponsor. In the event that Company rejects or only partially complies with such request, Company shall communicate the basis under EU Data Protection Laws for such rejection or partial compliance both to the data subject and to Sponsor (unless disclosure to Sponsor is inconsistent with the data subject’s rights).

	 
	 

	1.3. 
	The Parties agree that each Party may retain for a reasonable period of time any Personal Data consisting of the contact details and roles of the other Party’s personnel who have performed or received the Services for purposes of routine record-keeping, client care and, as appropriate (and unless otherwise requested), future contacts regarding potential agreements for the performance of additional services.

	 
	 

	1.4. 
	Each Party undertakes to implement, prior to any processing of Personal Data, appropriate technical and organizational measures to protect the Personal Data. The measures must at least attain a level of security equivalent to that which is prescribed under EU Data Protection Laws and any other applicable laws (to the extent they require a higher level of security) and what is otherwise appropriate taking into consideration the technical possibilities available, the costs for implementing the measures, the particular risks which are involved with the processing of the Personal Data and the sensitivity of the Personal Data being processed.

 
	 
	 
	
 
	 

 
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  	1.5. 	Should contractor(s) process Personal Data on behalf of either Party in connection with the Services or the administration of this Agreement, the Party using the contractor shall: (a) require each such contractor to enter into a written agreement with such Party that meets the requirements of the EU Data Protection Laws and other applicable laws, and (b) ensure that its instructions to each such contractor with respect to the processing of Personal Data are strictly limited to processing that is required for the performance or management of this Agreement. The foregoing requirements shall also apply with respect to subcontractors of a Party or its contractors.
	 
	 

	1.6. 	Each Party agrees that if any Personal Data received by a Party hereunder are to be processed at a location outside of the EEA, neither Party shall participate in such transfer of Personal Data prior to the identification, and as necessary, implementation, of an appropriate and mutually acceptable legal basis for such transfer consistent with EU Data Protection Laws, such as (but not limited to) the appropriate standard clauses for the transfer of Personal Data outside of the EEA approved by the European Commission from time to time.
	 
	 

	1.7. 	If a Party proposes the transfer or other sharing of Personal Data that is not contemplated in Section 1.2, the Parties shall use good-faith efforts (prior to such transfer or other sharing) to determine and document the Parties’ respective roles as a data controller, joint data controller, or data processor with respect to such Personal Data, in order to identify and facilitate compliance with their respective obligations under the EU Data Protection Laws. To the extent that one Party will act as a data processor for the other Party (acting as the data controller), the Parties will enter into further contractual commitments as necessary to comply with Article 28 of the GDPR.
	 
	 

	1.8. 	Each Party agrees that it shall not, directly or indirectly, disclose Sensitive Personal Data to the other Party without the prior written consent of the other Party (in the receiving Party’s sole discretion), following consultation regarding the necessity of such disclosure and agreement upon the protocols for processing the Sensitive Personal Data and any contractual terms that may be required in addition to those set forth herein in order to meet the requirements of the EU Data Protection Laws with respect to the specific Sensitive Personal Data that is proposed to be disclosed in connection with this Agreement.

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