Document:

Exhibit 10.16

 

NOCIMED, INC.

 

SUBORDINATED CONVERTIBLE PROMISSORY
NOTE AND WARRANT PURCHASE AGREEMENT

 

This Subordinated Convertible Promissory
Note and Warrant Purchase Agreement (this “ Agreement”) is made as of February 28, 2020 by and between Nocimed, Inc.,
a Delaware corporation (the “Company”), and each of the purchasers listed on Exhibit A attached to this Agreement
(each a “Purchaser” and together the “Purchasers”).

 

RECITALS

 

The Company desires to issue and
sell, and each Purchaser desires to purchase, a subordinated convertible promissory note in substantially the form attached to this Agreement
as Exhibit B (the “Note”) which shall be convertible on the terms stated therein into the series of preferred
stock that the Company issues in the Next Equity Financing (as defined in the Note) (such newly-issued stock, the “Next Equity
Securities”) or into Maturity Conversion Preferred (as defined in the Note), and a stock purchase warrant to purchase shares
of Common Stock of the Company in substantially the form attached to this Agreement as Exhibit C (the “Warrant”).
The Notes, the Warrants and the equity securities issuable upon conversion or exercise thereof are collectively referred to herein as
the “Securities.” Capitalized terms not otherwise defined herein have the meaning given them in the Note.

 

AGREEMENT

 

The parties hereby agree as follows:

 

1.             Purchase
and Sale of Notes.

 

(a)          
Sale and Issuance of Notes. Subject to the terms and conditions of this Agreement, each Purchaser agrees to purchase
at the Initial Closing (as defined below) and the Company agrees to sell and issue to each Purchaser:

 

(i)           
a Note in the principal amount set forth opposite such Purchaser’s name on Exhibit A; and

 

(ii)           a Warrant
to purchase the following number of shares of Common Stock:

 

(A)          if the aggregate principal amount of such
Purchaser’s Note (or Notes collectively) is greater than $100,000.00 but less than $500,000.00, the number of shares of Common
Stock purchasable upon exercise of such Purchaser’s Warrant shall be equal to the quotient equal to: (x) the product of
the aggregate principal amount of such Purchaser’s Note multiplied by 0.10; divided by (y) $0.18; or

 

(B)          
if the aggregate principal amount of such Purchaser’s Note (or Notes collectively) is greater than or equal to $500,000.00,
the number of shares of Common Stock purchasable upon exercise of such Purchaser’s Warrant shall be equal to the quotient equal
to: (x) the product of the aggregate principal amount of such Purchaser’s Note multiplied by 0.25; divided by (y)
$0.18; and

 

 

 

    	 	1	 

     

    

 

(iii)         
The aggregate purchase price of each Note and associated Warrant shall be equal to 100% of the principal amount of such Note. The
per share exercise price on the Warrants shall be the lesser of (x) the fair market value of a share of the Company’s Common
Stock as determined in good faith by the Company’s appraiser (and approved by the Company’s Board of directors) of such fair
market value as set forth in the Company’s first 409A Valuation following the initial closing of the Company’s Next Equity
Financing; or (y) $0.18; provided, however, that if there is no Next Equity Financing consummated on or before the Maturity Date,
such per share purchase price shall equal $0.18. The Company’s Agreements with each of the Purchasers are separate agreements, and
the sales of the Notes and Warrants to each of the Purchasers are separate sales, subject to the provisions of Section 10(c) below.

 

(b)          
Closing; Delivery.

 

(i)           
The purchase and sale of the Notes and Warrants shall take place remotely by the electronic exchange among the parties and their
counsel of all documents and deliverables required under this Agreement at 10:00 a.m., on January , 2020, or in such other manner or at
such other time and place as the Company and the Purchasers mutually agree upon, orally or in writing (which time and place are designated
as the “Initial Closing”). In the event there is more than one closing, the term “Closing” shall apply
to each such closing, unless otherwise specified herein.

 

(ii)           
At each Closing, the Company shall deliver to each Purchaser the Note and Warrant to be purchased by such Purchaser against (1)
payment of the purchase price therefor by check payable to the Company, by wire transfer to a bank designated by the Company or by cancellation
of existing indebtedness owed to Purchaser in accordance with Section 1(b)(vi) below, (2) delivery of counterpart signature pages to this
Agreement, the Note and the Warrant, and (3) delivery of a validly completed and executed IRS Form W-8BEN/W- 8BEN-E, IRS Form W-9 or similar
form, as applicable, establishing such Purchaser’s exemption from withholding tax, which forms are attached to this Agreement as
Exhibit D.

 

(iii)         
Until the earlier of (A) such time as the aggregate amount of principal indebtedness evidenced by the Notes equals a total of
$2,500,000, or (B) the date 60 days from the Initial Closing (or such greater amount than set forth in in the preceding clause (A) or
later date than set forth in the preceding clause (B) or both, as the Company in its sole discretion shall determine), the Company may
sell additional Notes and Warrants to such persons or entities as determined by the Company, or to any Purchaser who desires to acquire
additional Notes and Warrants; provided, however, that any Purchaser of less than $1,000,000 in principal amount of Notes who is a Competitor
(as defined below) must be approved by NuVasive, Inc., a Delaware corporation (“NuVasive”). If a Purchaser purchases
more than one note under this Agreement, the number of shares issuable upon exercise of a Purchaser’s Warrants shall be based on
the total aggregate principal amount of all Notes purchased by such Purchaser. All such sales shall be made on the terms and conditions
set forth in this Agreement. For purposes of this Agreement, and all other agreements contemplated hereby, any additional purchaser so
acquiring Notes and Warrants shall be deemed to be a “Purchaser” for purposes of this Agreement, and any notes and warrants
so acquired by such additional purchaser shall be deemed to be “Notes,” “Warrants” and “Securities”
as applicable. For purposes of this Agreement, “Competitor” means a third party engaged in the development, manufacture,
sale, marketing or promotion of any spine product.

 

(iv)         
In addition to the Purchaser approval requirements by NuVasive in Section 1(b)(iii) above, any other purchaser of less than $1,000,000
of equity securities in any financing who is a Competitor must also be approved by NuVasive. For purposes of this Section 1(b)(iv) and
Section 1(b)(iii) above, the Company shall use commercially reasonable efforts to determine whether a purchaser is a Competitor. This
provision shall survive the termination of this Agreement. The parties hereby agree and acknowledge that the “Consolidation Limitation”
provision in Section 3.13 of the that certain Amended and Restated Investors Rights Agreement dated as of July 27, 2017, by and among
the Company and the investors thereto, shall apply to any equity securities to be issued to NuVasive pursuant to the Notes.

 

 

 

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(v)           
Repayment of Non-Convertible Notes with Notes and Warrants. The Company previously issued certain Promissory Notes (each
individually a “Term Note” and the Term Notes being repaid hereunder together the “Term Notes”),
which the parties hereby are in agreement to repay through the issuance of Notes and, to the extent required pursuant to Section 1(a)(ii),
Warrants. Each Purchaser making payment for its Notes and, to the extent required pursuant to Section 1(a)(ii), Warrants, by way of cancellation
of indebtedness owed by the Company under a Term Note hereby: (i) acknowledges and agrees to surrender such Term Note(s) to the Company
for cancellation or shall execute an instrument of cancellation in form and substance acceptable to the Company, as requested by the Company
at or following the Closing; (ii) acknowledges and agrees that the principal and accrued interest set forth on Exhibit A hereto
accurately reflects all principal and accrued interest owed through February 14, 2020, and that such Purchaser waives receipt of interest
that would have accrued after February 14, 2020; (iii) acknowledges and agrees that the entire amount owed to such Purchaser under the
Term Note(s), including all accrued interest thereunder, shall be repaid through the issuance at the Closing into a Note with the principal
amount set forth in Exhibit A hereto and, to the extent required pursuant to Section 1(a)(ii), a Warrant to purchase the number shares
set forth opposite such Purchaser’s name on Exhibit A hereto without the requirement of any further action on the part of
such Purchaser; (iv) waives in connection with such payment any and all notices required by the terms of such Term Note(s) or any related
note purchase agreement; (v) waives as of the Closing any rights to receive payment pursuant to the Term Notes; and (vi) acknowledges
and agrees that effective upon the Closing, without any further action required by the Company or such Purchaser, such Term Note(s) and
all obligations of the Company set forth thereunder shall be immediately deemed satisfied in full and extinguished in their entirety,
and any rights of such Purchaser pursuant to such Term Note(s) and/or any related note purchase agreement shall be terminated and be of
no further force or effect, including the right to payment with respect to any residual principal or interest under the Term Note(s).
The Company and the applicable purchasers of Term Notes acknowledge and agree that the terms of the applicable Term Notes are amended
and restated to provide that the Term Notes convert into the Notes and, to the extent required pursuant to Section 1(a)(ii), Warrants,
set forth on Exhibit A hereto. Each such Purchaser represents and warrants that such Purchaser has good and valid title to such
Term Note(s), and has not transferred, pledged or otherwise disposed of any interest in such Term Note(s) (whether arising by contract,
operation of law or otherwise).

 

2.            
Stock Purchase Agreement. Each Purchaser understands and agrees that the conversion of the Notes into, and exercise
of the Warrants for, equity securities of the Company will require such Purchaser’s execution of certain agreements relating to
the purchase and sale of such securities as well as any rights relating to such equity securities.

 

3.            
Subordination. The indebtedness evidenced by the Notes shall be expressly subordinated, to the extent and in the
manner set forth in the Notes, in right of payment to the prior payment in full of all of the Company’s Senior Indebtedness (as
defined in the Notes), and each Purchaser hereby agrees to enter into such agreements and take such additional action as may be necessary
to perfect such subordination.

 

4.            
Representations and Warranties of the Company. The Company hereby represents and warrants to each Purchaser that:

 

(a)          
Organization, Good Standing and Qualification. The Company is a corporation duly organized, validly existing and
in good standing under the laws of the state of Delaware and has all requisite corporate power and authority to carry on its business
as now conducted and as proposed to be conducted. The Company is duly qualified to transact business and is in good standing in each jurisdiction
in which the failure to so qualify would have a material adverse effect on its business or properties.

 

(b)          
Authorization. This Agreement, the Notes and the Warrants, and the stock issuable upon conversion of the Notes or
exercise of the Warrants, have been duly authorized by the Board of Directors of the Company; however, (i) no stockholder approval has
been obtained, (ii) the Company has not obtained the necessary corporate approval for the authorization of any shares of Next Equity Securities
or Maturity Conversion Preferred, and (iii) a sufficient number of shares of Common Stock has not been authorized under the Company’s
Certificate of Incorporation to provide for the issuance of such shares upon conversion or exercise (as applicable) of the Notes and Warrants.
This Agreement, the Notes and the Warrants, when executed and delivered by the Company, shall constitute valid and legally binding obligations
of the Company, enforceable against the Company in accordance with their respective terms except as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, and other laws of general application affecting enforcement of creditors’
rights generally, and as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies.

 

 

 

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(c)           
Disqualification. The Company is not disqualified from relying on Rule 506 of Regulation D (“Rule 506”)
under the Securities Act of 1933, as amended (the “Securities Act”) for any of the reasons stated in Rule 506(d) in
connection with the issuance and sale of the Notes and the Warrants to the Purchasers.

 

5.            
Representations and Warranties of the Purchasers. Each Purchaser hereby represents and warrants to the Company that:

 

(a)           
Authorization. Such Purchaser has full power and authority to enter into this Agreement. This Agreement, when executed
and delivered by the Purchaser, will constitute a valid and legally binding obligation of the Purchaser, enforceable in accordance with
its terms, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, and any other laws
of general application affecting enforcement of creditors’ rights generally, and as limited by laws relating to the availability
of a specific performance, injunctive relief, or other equitable remedies.

 

(b)          
Purchase Entirely for Own Account. This Agreement is made with the Purchaser in reliance upon the Purchaser’s
representation to the Company, which by the Purchaser’s execution of this Agreement, the Purchaser hereby confirms, that the Securities
to be acquired by the Purchaser will be acquired for investment for the Purchaser’s own account, not as a nominee or agent, and
not with a view to the resale or distribution of any part thereof, and that the Purchaser has no present intention of selling, granting
any participation in, or otherwise distributing the same. By executing this Agreement, the Purchaser further represents that the Purchaser
does not presently have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participations
to such person or to any third person, with respect to any of the Securities. The Purchaser either has not been formed for the specific
purpose of acquiring the Securities, or each beneficial owner of equity securities of or equity interests in the Purchaser is an accredited
investor as defined in Rule 501(a) of Regulation D promulgated under the Securities Act.

 

(c)          
Knowledge; Financial Statements. The Purchaser is aware of the Company’s business affairs and financial condition
and has acquired sufficient information about the Company to reach an informed and knowledgeable decision to acquire the Securities. In
particular, each Purchaser acknowledges that such Purchaser has received a copy of the Company’s unaudited balance sheet as of December
31, 2019 and an unaudited statement of income and cash flows for the twelve months ending December 31, 2019(the “Financial Statement
Date” and collectively, the “Financial Statements”).

 

(d)          
Restricted Securities. The Purchaser understands that the Securities have not been, and will not be, registered under
the Securities Act, by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among
other things, the bona fide nature of the investment intent and the accuracy of the Purchaser’s representations as expressed herein.
The Purchaser understands that the Securities are “restricted securities” under applicable U.S. federal and state securities
laws and that, pursuant to these laws, the Purchaser must hold the Securities indefinitely unless they are registered with the Securities
and Exchange Commission and qualified by state authorities, or an exemption from such registration and qualification requirements is available.
The Purchaser acknowledges that the Company has no obligation to register or qualify the Securities for resale. The Purchaser further
acknowledges that if an exemption from registration or qualification is available, it may be conditioned on various requirements including,
but not limited to, the time and manner of sale, the holding period for the Securities, and on requirements relating to the Company which
are outside of the Purchaser’s control, and which the Company is under no obligation and may not be able to satisfy.

 

(e)          
No Public Market. The Purchaser understands that no public market now exists for any of the securities issued by
the Company, and that the Company has made no assurances that a public market will ever exist for the Securities.

 

(f)           
Legends. The Purchaser understands that the Securities, and any securities issued in respect thereof or exchange
therefor, may bear one or all of the following legends:

 

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

 

 

 

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(ii)          
Any legend required by the securities laws of any state to the extent such laws are applicable to the Securities or any securities
issued in respect thereof or exchange therefor.

 

(g)          
Accredited Investor. The Purchaser is an accredited investor as defined in Rule 501(a) of Regulation D promulgated
under the Securities Act.

 

(h)          
Disqualification. The Purchaser represents that neither the Purchaser, nor any person or entity with whom the Purchaser
shares beneficial ownership of Company securities, is subject to any of the “Bad Actor” disqualifications described in Rule
506(d)(1)(i) to (viii) under the Securities Act. Each Purchaser also agrees to notify the Company if such Purchaser or any person or
entity with whom such Purchaser shares beneficial ownership of Company securities becomes subject to such disqualifications after the
date hereof (so long as such Purchaser or any such person beneficially owns any equity securities of the Company).

 

(i)            Lock-up
Agreement.

 

(i)            
Lock-up Period; Agreement. If so requested by the Company or the underwriters in connection with the initial public
offering of the Company’s securities registered under the Securities Act of 1933, as amended, Purchaser shall not sell, make any
short sale of, loan, grant any option for the purchase of, or otherwise dispose of any securities of the Company however or whenever acquired
(except for those being registered) without the prior written consent of the Company or such underwriters, as the case may be, for 180
days from the effective date of the registration statement, plus such additional period, to the extent required by FINRA rules, up to
a maximum of 216 days from the effective date of the registration statement, and Purchaser shall execute an agreement reflecting the foregoing
as may be requested by the underwriters at the time of such offering.

 

(ii)           
Limitations. The obligations described in Section 5(i)(i) shall apply only if all officers and directors are subject
to similar restrictions and the Company uses commercially reasonable efforts to obtain a similar agreement from all 10% securityholders
of the Company, and shall not apply to a registration relating solely to employee benefit plans, or to a registration relating solely
to a transaction pursuant to Rule 145 under the Securities Act.

 

(iii)         
Stop-Transfer Instructions. In order to enforce the foregoing covenants, the Company may impose stop-transfer instructions
with respect to the securities of each Purchaser (and the securities of every other person subject to the restrictions in

Section 5(i)(i)).

 

(iv)         
Transferees Bound. Each Purchaser agrees that prior to the Company’s initial public offering it will not transfer
securities of the Company unless each transferee agrees in writing to be bound by all of the provisions of this Section 5(i).

 

(j)           
Foreign Investors. If a Purchaser is not a United States person (as defined by Rule 902(k) under the Securities Act),
such Purchaser hereby represents that it has satisfied itself as to the full observance of the laws of its jurisdiction in connection
with any invitation to subscribe for the Securities or any use of this Agreement, including (i) the legal requirements within its jurisdiction
for the purchase of the Securities, (ii) any foreign exchange restrictions applicable to such purchase, (iii) any governmental or other
consents that may need to be obtained and (iv) the income tax and other tax consequences, if any, that may be relevant to the purchase,
holding, redemption, sale or transfer of the Securities. Such Purchaser’s subscription and payment for, and his or her continued
beneficial ownership of the Securities, will not violate any applicable securities or other laws of the Purchaser’s jurisdiction.
Such Purchaser also hereby represents that such Purchaser is not a “10-percent shareholder” as defined in Section 871(h) of
the Internal Revenue Code of 1986, as amended.

 

(k)          
Foreign Investment Risk Review Modernization Act. Each Purchaser represents that it is not a “foreign person”
within the meaning of 31 C.F.R. §800.216, unless the Company has otherwise explicitly waived the requirement of this subsection as
it applies to a particular Purchaser in writing.

 

 

 

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(l)            
Foreign Investment Regulations. Each Purchaser represents that any consideration to be paid for Securities pursuant
to this Agreement does not derive from activity that is or was contrary to law or from a person or location that is or was the subject
of a United States embargo or other economic sanction and that no consideration to be paid for Securities in accordance with this Agreement
will provide the basis for liability for any person under United States anti-money laundering laws or economic sanctions laws. Each Purchaser
represents that neither such Purchaser nor any of its nominees or affiliates is on the specially designated OFAC list or similar European
Union watch list.

 

(m)         
Receipt of Company Financial Statements. Each Purchaser acknowledges that such Purchaser has receive the Company’s
Balance Sheet as of December 31, 2019 and has had the opportunity to ask the Company questions about its financial position.

 

6.            
Conditions of the Purchasers’ Obligations at Closing. The obligations of each Purchaser to the Company under
this Agreement are subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived:

 

(a)          
Representations and Warranties. The representations and warranties of the Company contained in Section 4 shall be
true on and as of the Closing with the same effect

as though such representations and warranties had been
made on and as of the date of the Closing.

 

(b)          
Qualifications. All authorizations, approvals or permits, if any, of any governmental authority or regulatory body
of the United States or of any state that are required in connection with the lawful issuance and sale of the Securities pursuant to this
Agreement shall be obtained and effective as of the Closing.

 

(c)           
Minimum Notes Purchased. At least $500,000 in aggregate principal amount of Notes shall be purchased at the Initial
Closing pursuant to the terms of this Agreement.

 

7.             
Conditions of the Company’s Obligations at Closing. The obligations of the Company to each Purchaser under
this Agreement are subject to the fulfillment, on or before the Closing, of each of the following conditions, unless otherwise waived:

 

(a)           
Representations and Warranties. The representations and warranties of each Purchaser contained in Section 5 shall
be true on and as of the Closing with the same effect as though such representations and warranties had been made on and as of the Closing.

 

(b)          
Qualifications. All authorizations, approvals or permits, if any, of any governmental authority or regulatory body
of the United States or of any state that are required in connection with the lawful issuance and sale of the Securities pursuant to this
Agreement shall be obtained and effective as of the Closing.

 

(c)          
Delivery of Form W-8 BEN or Form W-9. Each Purchaser shall have completed and delivered to the Company a validly
executed IRS Form W-8 BEN or IRS Form W-9, as applicable, establishing such Purchaser’s exemption from withholding tax.

 

8.            
Finder’s Fee. Each party represents that it neither is nor will be obligated for any finder’s fee or
commission in connection with this transaction. Each Purchaser agrees to indemnify and to hold harmless the Company from any liability
for any commission or compensation in the nature of a finder’s fee (and the costs and expenses of defending against such liability
or asserted liability) for which such Purchaser or any of its officers, employees, or representatives is responsible. The Company agrees
to indemnify and hold harmless each Purchaser from any liability for any commission or compensation in the nature of a finder’s
fee (and the costs and expenses of defending against such liability or asserted liability) for which the Company or any of its officers,
employees or representatives is responsible.

 

 

 

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9.             
Exculpation Among Purchasers. Each Purchaser acknowledges that it is not relying upon any person, firm or corporation,
other than the Company and its officers and directors, in making its investment or decision to invest in the Company. Each Purchaser agrees
that none of the other Purchasers nor the respective controlling persons, officers, directors, partners, agents, or employees of such
other Purchaser shall be liable for any action heretofore or hereafter taken or omitted to be taken by any of them in connection with
the Securities.

 

10.           Miscellaneous.

 

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

 

(b)         
Entire Agreement. This Agreement, and the documents referred to herein constitute the entire agreement between the
parties hereto pertaining to the subject matter hereof, and any and all other written or oral agreements existing between the parties
hereto are expressly canceled.

 

(c)          
Amendments and Waivers. Any term of this Agreement may be amended or waived only with the written consent of the
Company and the holders of at least a majority of the aggregate unpaid principal amount of the Notes; provided, however, that Section
1(b)(iii)-(v) may not be amended, modified, terminated or waived without the written consent of NuVasive. Any amendment or waiver effected
in accordance with this Section 10(c) shall be binding upon each Purchaser and each transferee of the Securities, each future holder of
all such Securities, and the Company.

 

(d)         
Successors and Assigns. Except as otherwise provided in this Agreement, this Agreement, and the rights and obligations
of the parties hereunder, will be binding upon and inure to the benefit of their respective successors, assigns, heirs, executors, administrators
and legal representatives. The Company may assign any of its rights and obligations under this Agreement. No other party to this Agreement
may assign, whether voluntarily or by operation of law, any of its rights and obligations under this Agreement, except with the prior
written consent of the Company.

 

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

 

(f)           
Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, the
parties agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable
replacement for such provision, then (i) such provision shall be excluded from this Agreement, (ii) the balance of the Agreement shall
be interpreted as if such provision were so excluded and (iii) the balance of the Agreement shall be enforceable in accordance with its
terms.

 

(g)          
Construction. This Agreement is the result of negotiations between and has been reviewed by each of the parties
hereto and their respective counsel, if any; accordingly, this Agreement shall be deemed to be the product of all of the parties hereto,
and no ambiguity shall be construed in favor of or against any one of the parties hereto.

 

(h)          
Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered
shall be deemed an original, and all of which together shall constitute one and the same agreement. Execution of a facsimile or scanned
copy will have the same force and effect as execution of an original, and a facsimile or scanned signature will be deemed an original
and valid signature.

 

 

 

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(i)          
Corporate Securities Law. THE SALE OF THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED
WITH THE COMMISSIONER OF BUSINESS OVERSIGHT OF THE STATE OF CALIFORNIA AND THE ISSUANCE OF THE SECURITIES OR THE PAYMENT OR RECEIPT OF
ANY PART OF THE CONSIDERATION THEREFOR PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE OF SECURITIES IS EXEMPT FROM THE QUALIFICATION
BY SECTION 25100, 25102 OR 25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS AGREEMENT ARE EXPRESSLY CONDITIONED
UPON THE QUALIFICATION BEING OBTAINED UNLESS THE SALE IS SO EXEMPT.

 

(j)            
Waiver of Conflicts. Each party to this Agreement acknowledges that Orrick, Herrington & Sutcliffe LLP, counsel
for the Company, may have in the past performed and may continue to perform legal services for certain of the Purchasers in matters unrelated
to the transactions described in this Agreement, including the representation of such Purchasers in venture capital financings and other
matters. Accordingly, each party to this Agreement hereby (a)   acknowledges
that they have had an opportunity to ask for information relevant to this disclosure; and (b) gives its informed consent to Orrick, Herrington
& Sutcliffe LLP’s representation of certain of the Purchasers in such unrelated matters and to Orrick, Herrington & Sutcliffe
LLP’s representation of the Company in connection with this Agreement and the transactions contemplated hereby.

 

[Signature Pages Follow]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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EXHIBIT A

 

SCHEDULE
OF PURCHASERS

 

	Name and Address	Note Principal Amount	Warrants	Purchase Date
	Bee Brothers Investments LLC 1	$17,051.96	 	February 28, 2020
	Attn: James Bee	 	 	 
	165 Salisbury Court,	 	 	 
	Colorado Springs, CO 80906	 	 	 
	Email: jbee4211@hotmail.com	 	 	 
	Bee Family Enterprises 2	$2,549.21	 	February 28, 2020
	Attn: James Bee	 	 	 
	165 Salisbury Court,	 	 	 
	Colorado Springs, CO 80906	 	 	 
	Email: jbee4211@hotmail.com	 	 	 
	Brian Scott 3	$5,075.14	 	February 28, 2020
	1364 Virginia Way	 	 	 
	La Jolla, CA 92037	 	 	 
	Email:	 	 	 
	brian.scott@amnhealthcare.com	 	 	 
	Clark A. Gunderson 4	$507,205.48	704,452	April 8, 2020
	2615 Enterprise Boulevard, Suite A	 	 	 
	Lake Charles, LA 70601	 	 	 
	Email: drg387278@aol.com	 	 	 
	Eastlack Family Living Trust dated February 27, 2007 5	$17,632.37	 	February 28, 2020
	5265 Amber View Pt	 	 	 
	San Diego, CA 92130	 	 	 
	Email:	 	 	 
	eastlack.robert@scrippshealth.org	 	 	 
	Michael L. Roberts and Cheryl Walker Roberts Family Trust 6	$26,787.35	 	February 28, 2020
	6610 Via Estrada	 	 	 
	La Jolla, CA 92037	 	 	 
	Email: mike @prestigeflag.com	 	 	 
	Paul Stanton 7	$11,492.38	 	February 28, 2020
	2805 Stratton Forest Hts	 	 	 
	Colorado Springs, CO 80906	 	 	 
	Email: paulstantonspine@gmail.com	 	 	 
	SC Capital I LLC 8	$504,876.71	701,217	April 8, 2020
	Attn: David K. Neal	 	 	 
	1 Compound Dr.	 	 	 
	Hutchinson, KS 67502	 	 	 
	Email:	 	 	 
	david.k.neal@frontierwealth.com	 	 	 

 

 

 

    	 	25	 

     

    

 

	Name and Address	Note Principal Amount	Warrants	Purchase Date
	Stone Capital LLC 9	$6,733.96	 	February 28, 2020
	Attn: James Bee	 	 	 
	165 Salisbury Court,	 	 	 
	Colorado Springs, CO 80906	 	 	 
	Email: jbee4211@hotmail.com	 	 	 
	NuVasive	$308,720.00	171,511	February 28, 2020
	7475 Lusk Boulevard	 	 	 
	San Diego, CA 92121	 	 	 
	Email:	 	 	 
	sfreeman@nuvasive.com	 	 	 
	Roger Sung	$10,680.07	 	February 28, 2020
	28 Marland Road	 	 	 
	Colorado Springs, CO 80906	 	 	 
	Email: skispine@yahoo.com	 	 	 
	Dr. Anthony Yeung	$3,317.50	 	April 28, 2020
	5448 E. Walle Vista Rd.	 	 	 
	Phoenix, AZ 85018	 	 	 
	Email: ayeung@sciatica.com	 	 	 
	Yeung Family Trust	$35,992.50	 	April 28, 2020
	5448 E. Walle Vista Rd.	 	 	 
	Phoenix, AZ 85018	 	 	 
	Email: ayeung@sciatica.com	 	 	 
	Rivelli Family Trust Dated May 30,	$3,730.00	 	February 28, 2020
	1986	 	 	 
	Total:	$1,922,534.63	1,854,957	 

 

1 Paid through repayment of Term Note dated
1/10/20 in the amount of $16,890.00, together with interest thereon.

 

2 Paid through repayment of Term Note dated 1/10/20 in
the amount of $2,525.00, together with interest thereon.

 

3 Paid through repayment of Term Note dated 12/23/19 in the amount
of $5,002.50, together with interest thereon.

 

4
Paid through cash investment received 04/08/20 in the amount of $100,000.00, together with repayment of: Term Note dated 11/01/19
in the amount of $200,000.00, together with interest thereon, Term Note dated 12/26/19 in the amount of $100,000.00, together with interest
thereon, and Term Note dated 2/11/20 in the amount of $100,000.00, together with interest thereon.

 

5 Paid through repayment
of Term Note dated 01/31/20 in the amount of $17,565.00, together with interest thereon.

 

6 Paid through repayment of Term Note
dated 01/31/20 in the amount of $26,685.00, together with interest thereon.

 

7 Paid through repayment of Term Note dated 01/13/20
in the amount of $11,392.50, together with interest thereon.

 

8
Paid through cash investments received 02/25/2020 in the amount of $100,000, and 04/08/20 in the amount of $100,000, together with repayment
of: Term Note dated 12/05/19 in the amount of $200,000.00, together with interest thereon, and Term Note dated 01/09/20 in the amount
of $100,000.00, together with interest thereon.

 

9 Paid through repayment of Term Note dated 01/10/20
in the amount of $6,670.00, together with interest thereon.

 

 

 

    	 	26	 

     

    

 

EXHIBIT B

 

SUBORDINATED CONVERTIBLE PROMISSORY
NOTE

 

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

 

SUBORDINATED CONVERTIBLE PROMISSORY NOTE

 

	$___________________	__________, 2020
	 	San Mateo, California

 

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

 

		1.	Basic Terms.

 

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

 

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

 

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

 

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

 

 

 

    	 	27	 

     

    

 

		2.	Conversion.

 

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

 

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

 

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

 

(iii)           Definitions.

 

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

 

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

 

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

 

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

 

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

 

 (6)            “Discount Rate” means 80.00%.

 

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

 

 

 

    	 	28	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

 

 

    	 	29	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

6.            
Subordination.

 

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

 

 

 

    	 	30	 

     

    

 

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

 

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

 

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

 

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

 

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

 

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

 

10.           
Miscellaneous.

 

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

 

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

 

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

 

 

 

    	 	31	 

     

    

 

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

 

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

 

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

 

[Signature Page Follows]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	32	 

     

    

 

 

 

IN WITNESS WHEREOF,
the Company has executed this Subordinated Convertible Promissory Note as of the date first set forth above.

 

 

 

 

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

 

 

 

	AGREED TO AND ACCEPTED:	 
	 	 
	THE HOLDER:	 
	 	 
	 	 
	 	 
	(PRINT NAME)	 
	 	 
	 	 
	 	 
	(Signature)	 
	 	 
	Address:	 
	________________________	 
	________________________	 
	Email: ___________________	 

 

 

    	 	33	 

     

    

 

EXHIBIT
C

 

WARRANT

 

 

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

 

	Warrant No. ___	Date of Issuance: ___________
	 	 
	 	Number of
Shares: ___________
	 	(subject to adjustment)

 

NOCIMED, INC.

 

STOCK PURCHASE
WARRANT

 

Nocimed, Inc., a Delaware corporation
(the “Company”), for value received, hereby certifies that ______________, or its registered assigns (the “Registered
Holder”), is entitled, subject to the terms set forth below, to purchase from the Company, at any time after the date hereof
and on or before the Expiration Date (as defined in Section 5) the number of shares set forth above of the Company’s Common Stock
(the “Common Stock”) at a per share purchase price equal to the lesser of (x) the fair market value of a share
of the Company’s Common Stock as determined in good faith by the Company’s appraiser (and approved by the Company’s
Board of directors) of such fair market value as set forth in the Company’s first appraisal in accordance with Section 409A following
the initial closing of the Company’s Next Equity Financing (as defined in the Purchase Agreement (as defined below)); or
(y) $0.18 (subject to adjustment as provided herein); provided, however, that if there is no Next Equity Financing consummated on or
before the Maturity Date, such per share purchase price shall equal $0.18. The shares purchasable upon exercise of this Warrant, and
the purchase price per share, as adjusted from time to time pursuant to the provisions of this Warrant, are hereinafter referred to as
the “Warrant Stock” and the “Purchase Price,” respectively.

 

This Warrant
is issued pursuant to, and is subject to the terms and conditions of, the Subordinated Convertible Promissory Note and Warrant Purchase
Agreement (the “Purchase Agreement”).

 

1.            
Number of Shares. Subject to the terms and conditions hereinafter set forth, the Registered Holder is entitled, upon
surrender of this Warrant, to purchase from the Company the number of shares (subject to adjustment as provided herein) of Warrant Stock
first set forth above.

 

2.             
Exercise.

 

(a)           
Manner of Exercise. This Warrant may be exercised by the Registered Holder, in whole or in part, by surrendering
this Warrant, with the purchase/exercise form appended hereto as Exhibit A duly executed by such Registered Holder or by such Registered
Holder’s duly authorized attorney, at the principal office of the Company, or at such other office or agency as the Company may
designate, accompanied by payment in full of the Purchase Price payable in respect of the number of shares of Warrant Stock purchased
upon such exercise. The Purchase Price may be paid by cash, check, wire transfer, or by the surrender of promissory notes or other instruments
representing indebtedness of the Company to the Registered Holder.

 

 

 

    	 	34	 

     

    

 

(b)          
Effective Time of Exercise. Each exercise of this Warrant shall be deemed to have been effected immediately prior
to the close of business on the day on which this Warrant shall have been surrendered to the Company as provided in Section 2(a). At such
time, the person or persons in whose name or names any notices of issuance for Warrant Stock shall be issuable upon such exercise as provided
in Section 2(d) shall be deemed to have become the holder or holders of record of the Warrant Stock referred to in such notices of issuance.

 

(c)           
Net Issue Exercise.

 

(i)            
In lieu of exercising this Warrant in the manner provided in Section 2(a), the Registered Holder may elect to receive shares equal
to the value of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the Company
together with notice of such election on the purchase/exercise form appended hereto as Exhibit A duly executed by such Registered
Holder or such Registered Holder’s duly authorized attorney, in which event the Company shall issue to such Registered Holder a
number of shares of Warrant Stock computed using the following formula:

 

		X =	Y (A - B) A

 

	Where	X =	The number of shares of Warrant Stock to be issued to the Registered Holder.

 

		Y =	The number of shares of Warrant Stock purchasable under this Warrant (at the date of such calculation).

 

		A =	The fair market value of one share of Warrant Stock (at the date of such calculation).

 

	 	B=	The Purchase
Price (as adjusted to the date of such calculation).

 

(ii)           
For purposes of this Section 2(c), the fair market value of Warrant Stock on the date of calculation shall mean with respect to
each share of Warrant Stock:

 

(A)         
if the exercise is in connection with an initial public offering of the Company’s Common Stock, and if the Company’s
Registration Statement relating to such public offering has been declared effective by the Securities and Exchange Commission, then the
fair market value shall be the initial “Price to Public” per share specified in the final prospectus with respect to the
offering;

 

(B)          
if this Warrant is exercised after, and not in connection with, the Company’s initial public offering, and if the Company’s
Common Stock is traded on a securities exchange or actively traded over-the-counter:

 

(1)           
if the Company’s Common Stock is traded on a securities exchange, the fair market value shall be deemed to be the average
of the closing prices over a thirty (30) day period ending three days before date of calculation; or

 

(2)           
if the Company’s Common Stock is actively traded over-the-counter, the fair market value shall be deemed to be the average
of the closing bid or sales price (whichever is applicable) over the thirty (30) day period ending three days before the date of calculation;
or

 

(C)          
if neither (A) nor (B) is applicable, the fair market value of Warrant Stock shall be at the highest price per share which the
Company could obtain on the date of calculation from a willing buyer (not a current employee or director) for shares of Warrant Stock
sold by the Company, from authorized but unissued shares, as determined in good faith by the Board of Directors, unless the Company is
at such time subject to an acquisition as described in Section 6(b), in which case the fair market value of Warrant Stock shall be deemed
to be the value received by the holders of such stock pursuant to such acquisition.

 

 

 

    	 	35	 

     

    

 

(d)          
Delivery to Holder. As soon as practicable after the exercise of this Warrant in whole or in part, and in any event
within ten (10) days thereafter, the Company at its expense will cause to be issued in the name of, and delivered to, the Registered Holder,
or as such Holder (upon payment by such Holder of any applicable transfer taxes) may direct:

 

(i)            
a notice or notices of issuance for the number of shares of Warrant Stock to which such Registered Holder shall be entitled, and

 

(ii)           
in case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor, calling in the aggregate
on the face or faces thereof for the number of shares of Warrant Stock equal (without giving effect to any adjustment therein) to the
number of such shares called for on the face of this Warrant minus the number of such shares purchased by the Registered Holder upon such
exercise as provided in Sections 2(a) or 2(c).

 

3.             
Adjustments.

 

(a)           
Stock Splits and Dividends. If the Company’s outstanding shares of the same class as the Warrant Stock shall
be subdivided into a greater number of shares or a dividend in the Company’s shares of the same class as the Warrant Stock shall
be paid in respect of the Company’s shares of the same class as the Warrant Stock, the Purchase Price in effect immediately prior
to such subdivision or at the record date of such dividend shall simultaneously with the effectiveness of such subdivision or immediately
after the record date of such dividend be proportionately reduced. If the Company’s outstanding shares of the same class as the
Warrant Stock shall be combined into a smaller number of shares, the Purchase Price in effect immediately prior to such combination shall,
simultaneously with the effectiveness of such combination, be proportionately increased. When any adjustment is required to be made in
the Purchase Price, the number of shares of Warrant Stock purchasable upon the exercise of this Warrant shall be changed to the number
determined by dividing (i) an amount equal to the number of shares issuable upon the exercise of this Warrant immediately prior to such
adjustment, multiplied by the Purchase Price in effect immediately prior to such adjustment, by (ii) the Purchase Price in effect immediately
after such adjustment.

 

(b)          
Reclassification, Etc. In case there occurs any reclassification or change of the outstanding securities of the Company
or of any reorganization of the Company (or any other corporation the stock or securities of which are at the time receivable upon the
exercise of this Warrant) or any similar corporate reorganization on or after the date hereof, then and in each such case the Registered
Holder, upon the exercise hereof at any time after the consummation of such reclassification, change, or reorganization shall be entitled
to receive, in lieu of the stock or other securities and property receivable upon the exercise hereof prior to such consummation, the
stock or other securities or property to which such Holder would have been entitled upon such consummation if such Holder had exercised
this Warrant immediately prior thereto, all subject to further adjustment pursuant to the provisions of this Section 3.

 

(c)           
Adjustment Certificate. When any adjustment is required to be made in the Warrant Stock or the Purchase Price pursuant
to this Section 3, the Company shall promptly mail to the Registered Holder a certificate setting forth (i) a brief statement of the facts
requiring such adjustment, (ii) the Purchase Price after such adjustment and (iii) the kind and amount of stock or other securities or
property into which this Warrant shall be exercisable after such adjustment.

 

4.             
Transfers.

 

(a)           
Unregistered Security. Each holder of this Warrant acknowledges that none of the Company’s securities (including
this Warrant and the Warrant Stock) have been registered under the Securities Act of 1933, as amended (the “Securities Act”),
and agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this Warrant or any Warrant Stock issued
upon its exercise (or any securities issued by the Company upon conversion or exchange thereof) in the absence of (i) an effective registration
statement under the Securities Act as to the sale of any such securities and registration or qualification of such securities under any
applicable U.S. federal or state securities law then in effect, or (ii) an opinion of counsel, satisfactory to the Company, that such
registration and qualification are not required. Each notice of issuance with respect to Warrant Stock issued upon the exercise of this
Warrant (and any securities issued by the Company upon conversion or exchange thereof) shall bear a legend substantially to the foregoing
effect.

 

 

 

    	 	36	 

     

    

 

(b)           
Transferability. Subject to the provisions of Section 4(a) hereof and to the “Lockup” provisions in the
Agreement, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of the Warrant with a properly
executed assignment (in the form of Exhibit B hereto) at the principal office of the Company.

 

(c)           
Warrant Register. The Company will maintain a register containing the names and addresses of the Registered Holders
of this Warrant. Until any transfer of this Warrant is made in the warrant register, the Company may treat the Registered Holder of this
Warrant as the absolute owner hereof for all purposes; provided, however, that if this Warrant is properly assigned in blank,
the Company may (but shall not be required to) treat the bearer hereof as the absolute owner hereof for all purposes, notwithstanding
any notice to the contrary. Any Registered Holder may change such Registered Holder’s address as shown on the warrant register by
written notice to the Company requesting such change.

 

5.            
Termination. This Warrant (and the right to purchase securities upon exercise hereof) shall terminate upon the earliest
to occur of the following (the “Expiration Date”):

 

 (a) the tenth (10th) anniversary of the date of issuance first set forth above, or

 

(b)          
the closing of a firm commitment underwritten public offering pursuant to a registration statement under the Securities Act, in
connection with which all of the shares of the Company’s Preferred Stock are converted to Common Stock as set forth in the Company’s
Certificate of Incorporation, or

 

(c)           
the sale, conveyance or disposal of all or substantially all of the Company’s property or business or the Company’s
merger with or into or consolidation with any other corporation (other than a wholly-owned subsidiary of the Company) or any other transaction
or series of related transactions in which more than fifty percent (50%) of the voting securities of the Company is disposed of, provided
that this Section 5(c) shall not apply to a merger effected exclusively for the purpose of changing the domicile of the Company or to
an equity financing in which the Company is the surviving corporation.

 

6.             
Notices of Certain Transactions. In case:

 

(a)           
the Company shall take a record of the holders of its outstanding stock of the same class as the Warrant Stock (or other stock
or securities at the time deliverable upon the exercise of this Warrant) for the purpose of entitling or enabling them to receive any
dividend or other distribution, or to receive any right to subscribe for or purchase any shares of stock of any class or any other securities,
or to receive any other right,

 

(b)          
of any capital reorganization of the Company, any reclassification of the capital stock of the Company, any consolidation or merger
of the Company, any consolidation or merger of the Company with or into another corporation (other than a consolidation or merger in which
the Company is the surviving entity), or any transfer of all or substantially all of the assets of the Company,

 

(c)            of the voluntary or involuntary
dissolution, liquidation or winding-up of the Company, then, and in each such case, the Company will mail or cause to be mailed to the
Registered Holder of this Warrant a notice specifying, as the case may be, (i) the date on which a record is to be taken for the purpose
of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, or (ii) the effective
date on which such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation, winding-up, redemption
or conversion is to take place, and the time, if any is to be fixed, as of which the holders of record of the Company’s outstanding
stock of the same class as the Warrant Stock (or such other stock or securities at the time deliverable upon such reorganization, reclassification,
consolidation, merger, transfer, dissolution, liquidation, winding-up, redemption or conversion) are to be determined. Such notice shall
be mailed at least ten (10) days prior to the record date or effective date for the event specified in such notice.

 

 

 

    	 	37	 

     

    

 

7.            
Exchange of Warrants. Upon the surrender by the Registered Holder of any Warrant or Warrants, properly endorsed,
to the Company at the principal office of the Company, the Company will issue and deliver to or upon the order of such Registered Holder,
at the Company’s expense, a new Warrant or Warrants of like tenor, in the name of such Registered Holder or as such Registered Holder
(upon payment by such Registered Holder of any applicable transfer taxes) may direct, calling in the aggregate on the face or faces thereof
for the number of shares of Warrant Stock called for on the face or faces of the Warrant or Warrants so surrendered.

 

8.             
Replacement of Warrants. Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction
or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement (with surety if
reasonably required) in an amount reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and cancellation
of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor.

 

9.             
No Rights as Stockholder. Until the exercise of this Warrant, the Registered Holder of this Warrant shall not have
or exercise any rights by virtue hereof as a holder of the shares issuable upon exercise of this Warrant.

 

10.          
No Fractional Shares. No fractional shares of Warrant Stock will be issued in connection with any exercise hereunder.
In lieu of any fractional shares which would otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied
by the fair market value of one share of Warrant Stock on the date of exercise, as determined in good faith by the Company’s Board
of Directors.

 

11.           
Attorney’s Fees. If any action at law or in equity (including arbitration) is necessary to enforce or interpret
the terms of any of this Warrant, the prevailing party shall be entitled to reasonable attorney’s fees, costs and necessary disbursements
in addition to any other relief to which such party may be entitled.

 

12.           
Miscellaneous.

 

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

 

(b)           
Entire Agreement. This Warrant sets forth the entire agreement and understanding of the parties relating to the
subject matter herein and supersedes all prior or contemporaneous discussions, understandings and agreements, whether oral or written,
between them relating to the subject matter hereof.

 

(c)            
Amendments and Waivers. No modification of or amendment to this Warrant, nor any waiver of any rights under this
Warrant, shall be effective unless in writing signed by the Company and the holders of a majority of the of all shares issuable upon exercise
of all Warrants issued pursuant to the Purchase Agreement. No delay or failure to require performance of any provision of this Warrant
shall constitute a waiver of that provision as to that or any other instance.

 

(d)           
Successors and Assigns. The terms and conditions of this Warrant shall inure to the benefit of and be binding upon
the respective successors and assigns of the parties.

 

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

 

(f)            
Severability. If one or more provisions of this Warrant are held to be unenforceable under applicable law, the parties
agree to renegotiate such provision in good faith. In the event that the parties cannot reach a mutually agreeable and enforceable replacement
for such provision, then (a) such provision shall be excluded from this Warrant, (b) the balance of this Warrant shall be interpreted
as if such provision were so excluded and (c) the balance of this Warrant shall be enforceable in accordance with its terms.

 

(g)           
Construction. This Warrant is the result of negotiations between and has been reviewed by each of the parties hereto
and their respective counsel, if any; accordingly, this Warrant shall be deemed to be the product of all of the parties hereto, and no
ambiguity shall be construed in favor of or against any one of the parties hereto.

 

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

 

[Signature Page Follows]

 

 

 

 

    	 	38	 

     

    

 

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

 

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

 

 

 

	AGREED TO AND ACCEPTED:	 
	 	 
	THE REGISTERED HOLDER:	 
	 	 
	 	 
	 	 
	(PRINT NAME)	 
	 	 
	 	 
	 	 
	(Signature)	 
	 	 
	Address:	 
	________________________	 
	________________________	 
	Email: ___________________	 

 

 

 

    	 	39	 

     

    

 

EXHIBIT A

 

PURCHASE/EXERCISE
FORM

 

	To: Nocimed, Inc.	Dated: ______________

 

The undersigned, pursuant to the provisions
set forth in the attached Warrant No. ____, hereby irrevocably elects to (a) purchase __________ shares of the capital stock covered
by such Warrant and herewith makes payment of $ __________, representing the full purchase price for such shares at the price per
share provided for in such Warrant, or (b) exercise such Warrant for __________ shares purchasable under the Warrant pursuant to the
Net Issue Exercise provisions of Section 2(c) of such Warrant.

 

The undersigned
acknowledges that it has reviewed the representations and warranties of the Purchasers set forth in the Agreement (as defined in the Warrant)
and by its signature below hereby makes such representations and warranties to the Company. Defined terms contained in such representations
and warranties shall have the meanings assigned to them in the Agreement, provided that the term “Purchaser” shall refer to
the undersigned and the term “Securities” shall refer to the Warrant Stock (and any securities issued by the Company upon
conversion or exchange thereof).

 

The undersigned
further acknowledges that it has reviewed the “Lockup” provisions as well as the waiver of statutory information rights set
forth in the Agreement and agrees to be bound by such provisions.

 

 

	ACKNOWLEDGED AND AGREED TO BY

        THE REGISTERED HOLDER:
	 
	 	 
	 	 
	 	 
	(Registered Holder)	 
	 	 
	By: ______________________________________________________	 
	(Signature)	 
	Name: ____________________________________________________	 
	Title: __________________________________________________	 
	 	 
	Address:	 
	________________________	 
	________________________	 
	Email: ___________________	 

 

 

 

    	 	40	 

     

    

 

EXHIBIT
B

 

ASSIGNMENT FORM

 

FOR VALUE RECEIVED, ____________________________________hereby
sells, assigns and transfers all of the rights of the undersigned under the attached Warrant with respect to the number of shares of
capital stock covered thereby set forth below, unto:

 

	Name of Assignee	Address/Facsimile Number	No. of Shares
	 	 	 

 

 

 

 

 

 

 

	ACKNOWLEDGED AND AGREED TO BY

        THE REGISTERED HOLDER:
	 
	 	 
	 	 
	 	 
	(Registered Holder)	 
	 	 
	By: ______________________________________________________	 
	(Signature)	 
	Name: ____________________________________________________	 
	Title: __________________________________________________	 
	 	 
	Address:	 
	________________________	 
	________________________	 
	Email: ___________________	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	41	 

     

    

 

EXHIBIT D

 

PURCHASER WITHHOLDING EXEMPTIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	42Exhibit 10.17

 

 

 

Strategic
Collaboration Agreement for Phased Commercialization of

the
Siemens-compatible NOCISCAN-LS Product of Nocimed, Inc.

 

 

 

-
hereinafter referred to as "Agreement"-

 

 

 

by
and between

 

 

 

Nocimed,
Inc.

370
Convention Way Redwood City, CA 94063

(a
Delaware C-Corporation, United States)

 

-
hereinafter referred to as "Nocimed" -

 

 

 

and

 

 

 

Siemens
Healthcare GmbH,

with
its registered seat in Munich, Federal Republic of Germany

-
hereinafter referred to as "Siemens" -

 

 

 

 

-
Nocimed and Siemens are hereinafter referred to individually

as
a "Party" or collectively as the "Parties" -

 

  

 

 

 

    	 	1	 

     

    

 

Table
of Contents

 

	Article 1.	Definitions	3
	Article 2.	Scope of the Agreement, WORK	4
	Article 3.	Governance	5
	Article 4.	Rights under RESULTS,
    IPR, INFORMATION	6
	Article 5.	Costs	7
	Article 6.	Regulatory Matters	7
	Article 7.	Confidentiality	8
	Article 8.	Data Protection	8
	Article 9.	Marketing	8
	Article 10.	Liability	9
	Article 11.	Term and
    Termination	9
	Article 12.	Governing Law and Dispute Resolution	9
	Article 13.	Miscellaneous	10

 

Annexes
and Exhibits:

 

	Annex 1:	SIEMENS
    PRODUCT, SIEMENS INTERFACE,
    NOCIMED PRODUCT	 
	 	 	 
	Annex 2 :	WORK	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	2	 

     

    

 

Preamble

 

WHEREAS,
Nocimed has CE Marked its NOCISCAN-LS product that is supported by a Clinical Evaluation Report (CER) from a prior clinical study
conducted by Nocimed for identifying painful lumbar spinal discs, and for predicting successful discogenic low back pain surgery outcomes.

 

WHEREAS,
Siemens is interested in progressively supporting a phased commercialization of Nocimed's CE marked NOCISCAN-LS product for compatible
use with Siemens' products, initial focused on a first commercial evaluation phase to confirm its technical performance, clinical utility,
and customer adaptability in such intended commercial use.

 

WHEREAS,
Nocimed is interested in securing support from Siemens in the phased NOCISCAN-LS commercialization by achieving the objectives of
the initial commercial evaluation with demonstration of the clinical and commercial value of the NOCIMED-LS product.

 

WHEREAS,
Each Party is the owner of certain know-how and of information relating to its products.

 

WHEREAS,
Nocimed intends to use such information, and related documentation, to further characterize and refine (if necessary) the NOCISCAN-LS
product, and to develop future extensions therefrom, for optimal compatible use with Siemens' products.

 

WHEREAS,
the collaboration between the Parties is intended to make Nocimed products available for Siemens MR customers by Nocimed and shall
allow both Parties to state to customers that their products are compatible with each other.

 

WHEREAS,
both Parties will act independently in marketing and selling their respective compatible devices, except where otherwise specified
herein with respect to certain potential future collaborative co-marketing activities, and each Party will remain solely liable and in
charge for service for its products.

 

 

 

NOW,
THEREFORE, the Parties agree as follows:

 

 

Article 1. Definitions

 

		1.1	"AFFILIATE"
                                            shall mean a corporation, Nocimed or Siemens respectively, now or hereafter, directly or
                                            indirectly, owned or controlled by, or owning or controlling, or under common control with
                                            a Party. For purposes of this definition "control" of a corporation, Nocimed or
                                            Siemens shall mean to have, directly or indirectly, the power to direct or cause the direction
                                            of the management and policies of a corporation, Nocimed or Siemens, whether (i) through
                                            the ownership of voting securities providing for the right to elect or appoint, directly
                                            or indirectly, the majority of the board of directors, or a similar managing authority, (ii)
                                            by contract or (iii) otherwise.

 

		1.2	"SIEMENS
                                            PRODUCT" shall mean the application 'Single Voxel Spectroscopy'.

 

		1.3	"NOCIMED
                                            PRODUCT" shall mean Nocimed's CE Marked NOClSCAN-LS product, which includes: 1) custom
                                            lumbar spinal disc spectroscopy exam protocol and 2) NOCISCAN-LS post-processor and resulting
                                            NOCIGRAM-LS Report w/ results of the post-processed NOCISCAN-LS exam data & evaluation.

 

		1.4	"INFORMATION"
                                            means any methods, processes, know-how, proprietary information, trade secrets, technology,
                                            designs, digital codes, software, inventions, innovations and improvements whether or not
                                            protected or protectable by "IPR", owned or controlled by either Party prior to
                                            the date of this Agreement, or which becomes owned or controlled by either Party during the
                                            term of this Agreement outside of the scope of the WORK.

 

 

 

    	 	3	 

     

    

 

		1.5	"IPR"
                                            means all rights with respect to patents, patent applications, patent and copyright law,
                                            as well as other forms of statutory protection rights, including but not limited to trademark
                                            laws, trade secret laws, and similar laws with respect to intellectual property throughout
                                            the world.

 

		1.6	"RESULTS"
                                            means any and all methods, processes, know-how, proprietary information, trade secrets, technology,
                                            designs, digital codes, anonymized clinical data, software, inventions, innovations and improvements
                                            made by either Party during the performance of tasks within the WORK, which are protected
                                            or protectable by IPR.

 

		1.7	"WORK"
                                            means collectively any and all tasks, development efforts, investigations, evaluations, tests,
                                            etc. carried out under Article 2.

 

		1.8	"APPLICABLE
                                            LAW(S)" means any law, statute, code, rule, regulation, published interpretation, ordinance,
                                            directive, regulatory bulletin or guidance, regulatory examination or order, treaty, judgment,
                                            order, decree or injunction of any governmental authority that is applicable and binding
                                            in the situation in which the term is used.

 

		1.9	"CAUSE"
                                            shall mean a material breach of this Agreement by a Party that remains uncured sixty (60)
                                            days after the other Party notifies the Party in breach in writing of such breach; provided,
                                            however, that the opportunity to cure shall not apply if the material breach in question
                                            is, by its nature, not curable. Without limiting the general nature of the foregoing, for
                                            purposes of this definition "material breach" shall include a Party's failure to
                                            satisfy its material obligations pursuant to the Agreement.

 

		1.10	"EFFECTIVE
                                            DATE" shall be September 2017-
                                            June 2018.

 

Article
2. Scope of the Agreement, WORK

 

		2.1	This
                                            Agreement describes the collaborative investigation of the NOCIMED Product between Siemens
                                            and Nocimed.

 

		2.2	The
                                            WORK to be performed by the Parties shall in general comprise the respective tasks of each
                                            Party as set out in the following phases of the collaboration.

 

		2.3	The
                                            collaboration is structured in the following 3 Phases:

 

Phase
1a: Collaboration to get going with the initial installation for early adopters and reference sites in Europe and continued support
for the ongoing US sites for Beta Evaluation. This phase is foreseen to be concluded by end of April 2018
or earlier.

 

		•	Establish
initial 3 to 5 sites in Europe to confirm technical performance, clinical value, and customer adoptability of the NOCIMED PRODUCT in
its intended commercial use. Nocimed to use its own Nocimed Product via Amazon AWS and AMBRA PACS DICOM gateway for data transfer

 

		•	Nocimed
                                            to conduct its own marketing and sales to commercially expand in Europe and US (and which
                                            may include other parties engaged to conduct such activities on Nocimed's behalf, including
                                            without limitation NuVasive Inc.)

 

		•	Siemens
                                            provides user manuals and relevant technical documents to Nocimed

 

		•	Siemens
                                            shall use commercially reasonable efforts to provide information support on a as need basis
                                            for existing users and new sites

 

		•	After
                                            initial contract between Nocimed, Siemens and the customer site, Nocimed is responsible to
                                            manage and coordinate the installation and training of the Nocimed Product at the customer
                                            site.

 

		•	Siemens
                                            shall use commercially reasonable efforts to provide support to identify and assist with
                                            initial contact with potential imaging sites

 

		•	Siemens
                                            is prepared to provide adequate licensing needed for the sites. Only sites on the VE11
                                            software line will be included in this phase.

 

 

 

    	 	4	 

     

    

 

		•	Spectropackage
can be provided as a free trial license for 3 months. If the trail license is required for a second period of 3 months there will be
a nominal fee (c.a. 750 EUR in Europe).

 

		•	Phase
1a commercial evaluation is limited to 3-5 sites which will contribute to acquiring and evaluating NOCISCAN-LS results for 90 patients
in total. The primary evaluation objective will be to confirm a continued desire by the evaluating customers to adopt the NOCIMED PRODUCT
into their lumbar spine diagnostic imaging regimen in their medical practice. The results of this trial shall be captured in a written
report supplied by Nocimed to Siemens.

  

		•	Siemens
                                            will support Nocimed with market data publicly available through credible sources of market
                                            intelligence.

 

		•	By
the end of the Phase 1a commercial evaluation, a mutual transition to Phase 1b will be decided.

 

		•	Siemens
shall use commercially reasonable efforts to provide support for Nocimed to establish and maintain compatible use of the NOCIMED PRODUCT
with Aera, Skyra, Vida and Prisma systems on VE11A or newer software lines.

 

		•	Nocimed
                                            shall use commercially reasonable efforts to support the customer sites in all matters regarding
                                            the Nocimed Products.

 

		•	Phase
                                            1a will be terminated on 31st August 2018 latest. All obligations end for both
                                            parties if no phase 1b is entered.

 

Phase
1b: After successfully concluding Phase 1a, the party will negotiate in good faith and start joint commercial activities to involve
co-marketing and promotion of the NOCIMED PRODUCT. In alignment with Siemens, Nocimed can expand their own global marketing and sales
activities in partnership with NuVasive Inc. (www.nuvasive.com).

 

		•	Nocimed
and Siemens start global joined marketing and sales activities

 

		•	Business model/fees
to be discussed in due time

 

Phase
2: Possible integration of the NOCIMED PRODUCT into SIEMENS Next Generation Frontier App Store model.

 

		•	After
successfully entering and demonstrating commercial success in Phase 1b the Parties agree to negotiate in good faith further cooperation
and integration of technology businesses.

 

Article
3. Governance

 

		3.1	Each
                                            Party shall nominate a project manager (the "PROJECT MANAGER"). The PROJECT MANAGERS
                                            will serve as the day-to-day contact point between the Parties for the purpose of communications
                                            pursuant to this Agreement regarding the activities performed hereunder. The PROJECT MANAGERS
                                            will be primarily responsible for facilitating the flow of information and otherwise promoting
                                            communication, coordination and collaboration between the Parties.

 

 

 

    	 	5	 

     

    

 

		3.2	The
                                            PROJECT MANAGERS are:

 

For Nocimed:

 

Name:
Jim Peacock

 

Title: Chairman & CEO

 

Phone: +1
(650)241-1740

 

Email: jpeacock@nocimed.com

 

For Siemens:

 

Name:
Jingyi Xie

 

Title:
Dr

 

Phone: +49 1722 685874

 

Email: Jingyi.xie@siemens-healthineers.com

 

 

Any
Party may at its own discretion replace the above-listed PROJECT MANAGER upon written notice to the other Party.

 

Article 4. Rights under
RESULTS, IPR, INFORMATION

 

		4.1.	Each
                                            Party hereto will retain all right, title and interest in and to all of its INFORMATION.

 

		4.2.	The
                                            exclusive right, title and interest in and to the SIEMENS PRODUCT, any and all existing IPR
                                            therein and any RESULTS thereto invented, created, developed or generated solely by Siemens'
                                            employees and representatives shall remain the absolute and exclusive property of Siemens.

 

		4.3.	The
                                            exclusive right, title and interest in and to the NOCIMED PRODUCT, any and all existing IPR
                                            therein and any RESULTS thereto invented, created, developed or generated solely by Nocimed's
                                            employees and representatives shall remain the absolute and exclusive property of Nocimed.

 

		4.4.	The
                                            Parties intend that each Party will conduct its own WORK at its own facilities. Notwithstanding
                                            the use of terms such as "collaboration" herein, the Parties intend that each Party
                                            conducts its own development work and tasks separately using its own personnel. The Parties
                                            do not intend to do any joint development and will work to minimize the possibility that
                                            any RESULTS are not ascribed to one Party or the other.

 

		4.5.	Notwithstanding
                                            the aforesaid in this Article 4, the exclusive right, title and interest in and to any new
                                            IPR and/or RESULTS jointly invented, created, developed or generated by employees or representatives
                                            of both Parties under this Agreement shall be the joint property of both Nocimed and Siemens
                                            ("JOINT IP").

 

		4.6.	Each
                                            Party may, in its sole discretion, make any use whatsoever of JOINT IP. Notwithstanding the
                                            aforesaid, if either Party wishes to license any JOINT IP to a third party (other than an
                                            AFFILIATE), such Party must receive the prior written approval of the other Party, which
                                            approval shall not be unreasonably withheld. Such approval shall not be conditioned on the
                                            payment of any consideration to the approving Party.

 

		4.7.	Each
                                            Party hereby grants under its INFORMATION and under its RESULTS to the other Party the non-exclusive,
                                            non-transferable, non-sub licensable royalty free right to use same during the term of this
                                            Agreement for the sole purpose of performing the WORK and no other purpose.

 

 

 

    	 	6	 

     

    

 

Article
5. Costs

 

Each
Party bears its own costs and expenses unless explicitly stated otherwise in this Agreement.

 

Article 6. Regulatory Matters

 

		6.1	Each
                                            Party shall have sole control and responsibility for all regulatory matters relating to the
                                            development or commercialization of its respective Products, including without limitation
                                            filing, obtaining and maintaining regulatory approvals and clearances throughout the world,
                                            handling all complaints, inquiries and obligatory reporting, and determining the need for
                                            and implementing product notifications, withdrawals or recalls for its respective Products.

 

		6.2	In
                                            addition, Nocimed will declare compatibility of its NOCIMED PRODUCT to the SIEMENS PRODUCT
                                            according to Art. 12 MOD and will ensure that compatibility is proven according to FDA regulations
                                            (before or upon US market entry). This compatibility declaration will be based on a test
                                            Nocimed performs in conjunction with Siemens.

 

		6.3	Within
                                            Phase 1a, Siemens will take commercially reasonable precautions to timely notify Nocimed
                                            of any actual or planned change to a Siemens product that might compromise the compatible
                                            use of the NOCIMED PRODUCT with the Siemens product, and to provide Nocimed with such information
                                            and/or collaborative testing as may be reasonably required in order for Nocimed to sufficiently
                                            maintain or update the NOCIMED PRODUCT to ensure continued compatible use with such Siemens
                                            product in view of such change.

 

		6.4	Nocimed
                                            is solely responsible for compliance with and will ensure that any sale, promotion or other
                                            use of its NOCIMED PRODUCT fulfills, the APPLICABLE LAWS, applicable national laws and regulations,
                                            in particular but not all inclusive for compliance with the required market approvals, labeling
                                            or marketing requirements under medical device, clinical trial or product safety regulations.
                                            Siemens shall not be required to review the documentation or quotations for the NOCIMED PRODUCT,
                                            but shall have the opportunity to do so to the extent that any references to or descriptions
                                            of any Siemens' Products or technology are included therein. Siemens shall reasonably support
                                            this process and assist Nocimed by providing documentation and information available at Siemens
                                            and relevant to the NOCIMED PRODUCT to Nocimed.

 

		6.5	Each
                                            Party shall bear the costs for its own regulatory filings.

 

		6.6	Safety
                                            Reporting and Recalls; Record Keeping. Pursuant to Medical Device Reporting (MOR) and
                                            similar regulatory and safety requirements, each Party may be required to report to a Regulatory
                                            Authority, including the Food and Drug Administration of the United States Department of
                                            Health and Human Services (the "FDA"), including but not limited to the FDA's Medical
                                            Device Reporting requirements, codified at 21 C.F.R Part 803, and/or certain notified bodies
                                            in the European Union, among others, information that reasonably suggests that any or all
                                            of its respective Products may have caused or contributed to a death or serious injury or
                                            malfunctioned and that the respective Product at issue or in question would be likely to
                                            cause or contribute to a death or serious injury if the malfunction were to recur. Each Party
                                            hereto agrees to provide to the other Party any such information no later than 48 (forty-eight)
                                            hours in writing in case of a death, serious injury, serious deterioration in state of health,
                                            or in case there is reasonable suggestions that the device has malfunctions and is likely
                                            to cause or contribute to a death, serious injury or serious deterioration in state of health,
                                            in case the malfunction is to recur. In the event that either Party is required by any Regulatory
Authority to recall a product or undertake a field action, or if the other Party or a Regulatory Authority initiates a recall or undertakes
a field action with respect to a product, the other Party shall cooperate with and assist the recalling or undertaking Party in locating,
and retrieving if necessary, the recalled products from all customers or otherwise carrying out a field action.

 

For
the designated contact persons please refer to Annex 1

 

		6.7	Each
                                            Party will communicate to the other Party complaints received that are reasonably related
                                            to the other Party's Products, not later than 30 working days

 

 

 

    	 	7	 

     

    

 

Article 7. Confidentiality

 

		7.1	From
                                            time to time during the Term of this Agreement, either Party (as the "Disclosing Party")
                                            may disclose or make available to the other Party (as the "Receiving Party") information
                                            about its business affairs, products/services, confidential intellectual property, trade
                                            secrets, and other sensitive or proprietary information, whether orally or in written, electronic
                                            or other form or media, or other tangible form, which shall be marked, designated or otherwise
                                            identified as "confidential", or all other information initially disclosed by the
                                            Disclosing Party in unmarked, oral or other intangible form and identified as Confidential
                                            Information at the time of disclosure by the Disclosing Party shall be reduced to a marked
                                            tangible form and provided to the Receiving Party within thirty (30) days from the date of
                                            the initial disclosure (collectively "Confidential Information"). Confidential
                                            Information shall not include information that, at the time of disclosure and as established
                                            by documentary evidence: (i) is or becomes generally available to and known by the public
                                            other than as a result of, directly or indirectly, any breach of this Article 6 by the Receiving
                                            Party; (ii) is or becomes available to the Receiving Party on a non-confidential basis from
                                            a third-party source, provided that such third-party source is not and was not prohibited
                                            from disclosing such Confidential Information; (iii) was known by or in the possession of
                                            the Receiving Party prior to being disclosed by or on behalf of the Disclosing Party; (iv)
                                            was or is independently developed by the Receiving Party without reference to or use of,
                                            in whole or in part, any of the Disclosing Party's Confidential Information; or (v) is required
                                            to be disclosed pursuant to applicable federal, state or local law, regulation or a valid
                                            order issued by a court or governmental agency of competent jurisdiction. The Receiving Party
                                            shall: (A) protect and safeguard the confidentiality of the Disclosing Party's Confidential
                                            Information with at least the same degree of care as the Receiving Party would protect its
                                            own Confidential Information, but in no event with less than a commercially reasonable degree
                                            of care; (B) not use the Disclosing Party's Confidential Information, or permit it to be
                                            accessed or used, for any purpose other than to exercise its rights or perform its obligations
                                            under this Agreement; and (C) not disclose any such Confidential Information
to any person or entity, except to the Receiving Party's and its Affiliates who need to know the Confidential Information to assist the
Receiving Party, or act on its behalf, to exercise its rights or perform its obligations under the Agreement. The Receiving Party shall
be responsible for any breach of this Article 6 caused by any of its Affiliates. At any time during or after the term of this Agreement,
at the Disclosing Party's written request, the Receiving Party shall promptly return to the Disclosing Party all copies, whether in written,
electronic or other form or media (including, without limitation, any samples), of the Disclosing Party's Confidential Information, or
if requested in writing by the Disclosing Party, destroy all such copies (except that the Receiving Party may retain one (1) copy of
and such document lists identifying the Confidential Information of the Disclosing Party as may be necessary for legal record purposes)
and certify in writing to the Disclosing Party that such Confidential Information has been destroyed. The Disclosing Party may seek equitable
relief (including injunctive relief) against the Receiving Party to prevent the breach or threatened breach of this Article 6 and to
secure its enforcement, in addition to all other remedies available at law.

 

		7.2	The Agreement
                                            and its contents shall be Confidential Information

 

		7.3	Any
                                            prior nondisclosure agreement(s) entered into between the Parties that concern the subject
                                            matter of this Agreement will govern for disclosures made up to the effective date of this
                                            Agreement. Following execution of this Agreement, any disclosure of information between the
                                            Parties in accordance with this section and related to the subject matter of this Agreement
                                            shall be governed by the provisions of this Article 6, and any prior nondisclosure agreement
                                            concerning the same subject matter is hereby amended, superseded and replaced. Prior nondisclosure
                                            agreements remain in effect for disclosures between the Parties not related to the subject
                                            matter of this Agreement.

 

Article 8. Data Protection

 

Each
Party shall be responsible for complying with the data protection requirements applicable to such Party for its respective Products.

 

Article 9. Marketing

 

Nocimed
is solely responsible for the promotion, lead-generation marketing and sales of the NOCIMED PRODUCTS. Siemens is solely responsible for
the promotion, lead-generation marketing and sales of the SIEMENS PRODUCTS. If the Parties progress to Phase 1b, certain co-marketing
and sales activities are expected to be negotiated at that time.

 

 

 

    	 	8	 

     

    

 

Article
10. Liability

 

		10.1	In
                                            case of damage to property intentionally or negligently caused by one Party, the Party liable
                                            shall bear the reasonable costs for repair up to an amount of EURO 50,000.- per occurrence
                                            with a maximum cap of EURO 250,000.- for all occurrences in the aggregate.

 

		10.2	WITHOUT
                                            AFFECTING STRICT PRODUCT LIABILITY UNDER MANDATORY APPLICABLE LAW OR THE RESPECTIVE OBLIGATIONS
                                            OF THE PARTIES UNDER THE CONFIDENTIALITY CLAUSE AND EXCEPT FOR BREACHES ASSOCIATED WITH THE
                                            UNAUTHORIZED USE OF INTELLECTUAL PROPERTY, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE
                                            OTHER PARTY FOR SPECIAL, INCIDENTAL, CONSEQUENTIAL, INDIRECT, EXEMPLARY OR PUNITIVE OR TORT
                                            DAMAGES (INCLUDING NEGLIGENCE), INCLUDING WITHOUT LIMITATION, ANY DAMAGES RESULTING FROM
                                            LOSS OF USE, LOSS OF DATA, LOSS OF PROFITS, LOSS OF BUSINESS, OR LOSS OF USE AND THE LIKE,
                                            OR ANY OTHER CAUSE OF ACTION ARISING OUT OF OR IN CONNECTION WITH THE MATTERS CONTEMPLATED
                                            BY THIS AGREEMENT, WHETHER OR NOT A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

		10.3	The
                                            total aggregate liability of one Party to another Party for any claim relating to any breach
                                            of this Agreement shall be limited to EURO 1.000.000.

 

Article
11. Term and Termination.

 

		11.1	Term.
                                            This Agreement shall become effective on the EFFECTIVE DATE for an initial term of one (1)
                                            year ("Initial Term"). Unless earlier terminated, the Agreement shall be extended
                                            for successive terms of one (1) year each unless written notice to terminate is given by
                                            either Party at least three (3) months before the end of the respective contract term.

 

		11.2	Termination
                                            for Cause. Notwithstanding the foregoing, this Agreement may be terminated in writing by
                                            either Party at any time with immediate effect if this Party is of the opinion that the goals
                                            of this Agreement cannot be achieved for technical, economic and or clinical reasons and
                                            the other Party shall have no claim for costs or damages regarding such early termination.

 

		11.3	Survival.
                                            All provisions which are continuing in nature and any provision of this Agreement intended
                                            to survive the performance thereof by either Party or both Parties hereto shall survive any
                                            termination or the expiration of this Agreement.

 

Article
12. Governing Law and Dispute Resolution

 

		12.1	If
                                            a dispute arises in connection with this Agreement, the responsible representatives of the
                                            Parties shall attempt, in fair dealing and good faith, to settle such dispute. Upon request
                                            of a Party a senior management representative of each Party shall participate in the negotiations.
                                            Each Party shall be entitled to terminate these negotiations by written notification to the
                                            other Party at any time.

 

		12.2	All
                                            disputes arising in connection with this Agreement which are not resolved pursuant to the
                                            preceding Section, including any question regarding the termination or any subsequent amendment
                                            of the Agreement, shall be finally settled in accordance with the Rules of Arbitration of
                                            the International Chamber of Commerce by one or more arbitrators appointed in accordance
                                            with the said Rules of Arbitration. The place of the arbitration shall be Zurich, Switzerland.
                                            The language of the arbitration shall be English.

 

		12.3	Nothing
                                            in this Agreement shall prevent either Party from seeking provisional measures from any court
                                            of competent jurisdiction, and any such request shall not be deemed incompatible with the
                                            agreement to arbitrate or a waiver of the right to arbitrate.

 

		12.4	All
                                            disputes shall be settled in accordance with the provisions of this Agreement and any agreements
                                            concerning its performance, otherwise in compliance with the substantive law applicable in
                                            Switzerland without reference to any other body of law. The United Nations Convention on
                                            Contracts for the International Sale of Goods of April 11, 1980 shall be excluded.

 

 

 

    	 	9	 

     

    

 

Article 13.
Miscellaneous

 

		13.1	The
                                            Parties' obligation to fulfill this Agreement is subject to the provision that the fulfillment
                                            is not prevented by any impediments arising out of national and international foreign trade
                                            and customs requirements or any embargos or other sanctions.

 

		13.2	Export
                                            Controls. The Parties hereto further represent and warrant that they understand that the
                                            exchange of information pursuant to the terms of this Agreement may be subject to all applicable
                                            national and international (re-)export control regulations, in particular of the USA, the
                                            European Union and the Federal Republic of Germany. The Parties hereto will comply with all
                                            applicable (re) export controls laws, rules, and regulations, including, but not limited
                                            those of the USA, the European Union and the Federal Republic of Germany relating the performance
                                            of their obligations hereunder.

 

		13.3	No
                                            Assignments. Neither Party shall be entitled without the prior written consent of the other,
                                            to transfer or assign, in whole or in part, this Agreement or any rights and obligations
                                            arising from it to third parties; except that Siemens may assign this Agreement, in whole
                                            or in part, and/or its rights and obligations hereunder without the consent of Nocimed or
                                            extend this Agreement to an AFFILIATE, or to a third-party successor in interest of all or
                                            part of the business to which this Agreement relates, whether as a result of a change of
                                            ownership (including by stock purchase, merger or consolidation) and/or as a result of the
                                            sale of all or a substantial part of the assets and/or all or a part of the business to which
                                            this Agreement relates and/or in connection with any type of spin-off, (de)merger, consolidation,
                                            divestiture, dissolution and any other type of business combination or business reorganization,
                                            including, without limitation, the establishment of joint venture companies and/or otherwise.

 

		13.4	Amendments.
                                            Any amendments as well as supplements to this Agreement must be in writing and signed by
                                            both Parties in order to be effective. No waiver by either Party of any default of the other
                                            Party will be held to be a waiver of any other or subsequent default. No waiver shall be
                                            effective unless it is in writing and is signed by the Party against which it is asserted.

 

		13.5	Notices.
                                            If a notice must be "in writing" or "in written form", such notice shall
                                            be duly signed by the sender and sent to the other Party in its original form by commercial
                                            courier with a return receipt or as a fax copy the receipt of which is acknowledged in writing.
                                            The written form may not be substituted by the electronic form. Notices are effective upon
                                            delivery. A Party may change its address for notice by giving the other Party notice in accordance
                                            with this section.

 

		13.6	Conflicting
                                            Terms and Provisions. Where provisions of this Agreement conflict with Annexes to the Agreement,
                                            the provisions of this Agreement shall prevail.

 

		13.7	Severability.
                                            If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction,
                                            such invalidity, illegality or unenforceability shall not affect any other term or provision
                                            of this Agreement or invalidate or render unenforceable such term or provision in any other
                                            jurisdiction. Upon a determination that any term or provision is invalid, illegal or unenforceable,
                                            the Parties hereto shall negotiate in good faith or the court/ arbitral tribunal may modify
                                            this Agreement to affect the original intent of the Parties as closely as possible in order
                                            that the transactions contemplated hereby are consummated as originally contemplated to the
                                            greatest extent possible.

 

		13.8	Press
                                            Releases, Statements. Neither Party will issue any press release, public announcement or
                                            other statements towards third parties with respect to the existence
or contents of this Agreement without the prior written consent of the other Party; except as may be required by applicable law or by
obligations pursuant to any listing agreement with or rules of any national securities exchange. In such case, notice of any such disclosure
will be given to the other Party as soon as reasonably possible.

 

 

 

    	 	10	 

     

    

 

The Parties hereto hereby enter into this
Agreement as of the date of last signature by the Parties set forth below.

 

 

 

 

 

    	 	11

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