Document:

Exhibit 10.1

MANUFACTURING, DESIGN AND MARKETING AGREEMENT

 

This MANUFACTURING, DESIGN
AND MARKETING AGREEMENT (this “Agreement”) is entered into by and between Zounds Hearing, Inc., a Delaware corporation
(“Subcontractor”) and InnerScope Hearing Technologies, Inc., a Nevada corporation, (the “Manufacturer”)
Manufacturer dated effective October 3, 2018 (the “Effective Date”). Subcontractor and Manufacturer may also be referred
to herein individually as “Party” or collectively as the “Parties”.

 

RECITALS

 

WHEREAS, Subcontractor
currently is the registered manufacturer of hearing aids and related components and accessories (the “Zounds Products”)
that are sold under the Subcontractor’s brand names through various marketing and distribution channels.

 

WHEREAS the Parties desire
to enter an agreement whereby the Subcontractor as the Manufacturer’s subcontractor will provide design, technology, manufacturing
and supply chain services to the Manufacturer to enable the Manufacturer to manufacture comparable hearing aids and related components
and accessories to be sold under Manufacturer’s exclusive brand names (the “Manufacturer’s Products”) through
the Manufacturer’s various marketing and distribution channels.

 

WHEREAS, the Parties also
desire to enter into a lease agreement of Subcontractor’s current Chandler, Arizona facility that provides the Manufacturer
an FDA medical device facility for the Manufacturer’s Products.

 

WHEREAS, the Parties also
desire to enter into an agreement that provides for the joint marketing and sale of each other’s products.

 

NOW,
THEREFORE, in consideration of the promises and covenants contained herein, the Parties hereby agree as follows:

 

1.             
Term. Subject to earlier termination as provided in this Agreement, the initial term of this Agreement
shall be for a period beginning on the Effective Date and ending ten (10) years thereafter unless this Agreement is terminated
earlier as provided herein. This Agreement will renew automatically thereafter for successive one-year terms unless and until one
Party gives notification of termination with at least sixty (60) days written notice. All orders placed under this Agreement must
be placed prior to the expiration or termination of this Agreement.

2.             
Technology Access Fee.  Manufacturer will pay Subcontractor One Million and No/100 USD ($1,000,000) (the “Technology
Access Fee”). The Technology Access Fee will be paid in two equal installments of $500,000 each. The first installment will
be due thirty (30) days following the Effective Date and the second installment will be due sixty (60) days following the Effective
Date.

3.       Orders
for Manufacturer’s Products to be Manufactured by Subcontractor

3.1
Purchase Orders: Excess Inventory. Manufacturer shall provide to Subcontractor a purchase order setting forth the proposed
quantity of Manufacturer’s Products to be purchased by Manufacturer and delivery dates, which purchase order will be subject
to written acceptance by Subcontractor. All purchase orders are non-cancellable, and the Manufacturer shall pay for the purchaser
orders as follows: (i) for purchase orders for less than or equal to a total of five hundred (500) units in any given calendar
month, payment of fifty percent (50%) of Product Cost (as defined below) shall be made in full at the time the order is placed
and the remaining balance paid in full before the Manufacturer’s Products are shipped; and (ii) for purchase orders for more
than five hundred (500) units in any given calendar month, payment of one hundred percent (100%) of Product Cost shall be made
in full at the time the order is placed. Manufacturer's purchase orders accepted by Subcontractor and any forecast provided to
Subcontractor by Manufacturer will constitute authorization for Subcontractor to procure product components to manufacture the
Manufacturer’s Products covered by such purchase orders based on their lead times. Subcontractor will advise Manufacturer
of the lead time of components contained within their order and any forecast and Manufacturer will pay for the components prior
to the Subcontractor placing orders for the components.

3.2
Contract Formation: Acceptance and Entire Agreement. Each time Manufacturer submits an order for Manufacturer’s Products
and Subcontractor accepts the order or ships the ordered Manufacturer’s Products to Manufacturer, a new contract is formed
consisting of this Agreement, the quantities and delivery dates specified in the order and the prices then offered by Subcontractor.
ACCEPTANCE OF MANUFACTURER'S ORDER IS EXPRESSLY LIMITED TO THE TERMS AND CONDITIONS OF THIS AGREEMENT, NOTWITHSTANDING ANY ORAL
OR WRITTEN STATEMENT MADE BY MANUFACTURER, AND DOES NOT IN ANY WAY WHATSOEVER CONSTITUTE ACCEPTANCE OF MANUFACTURER'S TERMS AND
CONDITIONS EXCEPT AS SET FORTH IN THE TERMS OF THIS AGREEMENT. NO TERMS AND CONDITIONS Contained
IN ANY PURCHASE ORDER FORM, WHETHER PROVIDED BY MANUFACTURER OR SUBCONTRACTOR, WILL BECOME A PART OF THE CONTRACT AND THIS CONTRACT
WILL GOVERN ALL PURCHASES. Manufacturer's acceptance of or payment for Manufacturer’s Products that Manufacturer has not
ordered creates a contract comprised of this Agreement, the quantities of Manufacturer’s Products accepted or paid for, and
the prices then offered by Subcontractor. This Agreement shall constitute the entire agreement with respect to any contract formed
and shall not be altered, amended, supplemented or canceled without the express written agreement of both Manufacturer and Subcontractor.

3.3
Product Prices. Pricing shall be the actual cost of the manufacturing of each Manufacturer’s Product plus the proportional
allocation of the costs of Subcontractor’s manufacturing, engineering, and supply chain overhead, as mutually agreed by the
Parties (the “Product Cost”). Title of the product will transfer to the Manufacturer at the shipping dock of the manufacturing
facility. Manufacturer will be responsible for shipping costs. Manufacturer shall pay any taxes incurred in the manufacture of
Manufacturer’s Products, including any taxes incurred as a result of purchasing components or maintaining inventory. In addition
to the Royalties paid under this Agreement to the Subcontractor, Manufacturer shall pay any other third-party royalties for technology
that are required to manufacture the Manufacturer’s Products for their intended purpose. As of the date of this Agreement
neither Party is aware of any third-party royalties for technology that Manufacturer would be liable to pay. Subcontractor will
provide Manufacturer with documentation substantiating any Product Cost variance upon request.

3.4
Cost Reductions. Potential Product Cost reductions as a result of materials pricing will be reviewed and implemented periodically
as mutually agreed and passed on to the Manufacturer. Product Cost reductions resulting from engineering changes or other changes,
initiated by Manufacturer, that would impact either Product Costs or process changes at Subcontractor will be implemented at an
agreed upon time. Manufacturer will be responsible for their proportionate share of any Product Cost reduction that is a result
of engineering investment by the Subcontractor. If the Manufacturer does not pay its proportionate share, the Manufacturer will
pay the Product Cost as if the cost reduction had not been made (i.e., the Product Cost prior to the cost reduction as if the cost
reduction were not made). The Subcontractor will list the new Product Cost and a line item for engineering investment that accounts
for the difference.

3.5 Royalties.
In addition to paying the Product Costs of Manufacturer’s Products, Manufacturer shall also pay to Subcontractor the following
royalty payments (each a “Royalty” and collectively the “Royalties”) for each of Manufacturer’s Product
purchased under this Agreement. Royalties shall be paid 50% at time of shipping and the remaining balance of 50% due in 15-days
after the Manufacturer’s Products have shipped from the manufacturing facility.

 

		a)	Non-Rechargeable Products. For Manufacturer’s Products that are non-rechargeable,
Manufacturer shall pay Subcontractor a Royalty equal to the higher of (i) eighty percent (80.0%) of the Product Cost; and (ii)
$80 per unit.

 

		b)	Rechargeable Products. For Manufacturer’s Products that are rechargeable, Manufacturer
shall pay Subcontractor a Royalty equal to the higher of (i) one hundred percent (100.0%) of the Product Cost; and (ii) $100 per
unit.

 

3.6
Zounds’ Products and Manufacturers Products Built to Manufacturer's Specifications. Subject to Section 7 below,
Subcontractor agrees to manufacture Manufacturer’s Products (i) that are identical to Zounds’ Products allowing Manufacturer
to utilize Subcontractor’s existing product designs and features and/ or (ii) to specifications provided by Manufacturer
from time to time with approval of such changes by Subcontractor. Any advice given by Subcontractor to Manufacturer before or after
delivery of Products built to Manufacturer's specifications is based solely upon the information available to Subcontractor, and
the use of such advice by Manufacturer is solely and entirely at Manufacturer's own risk. Manufacturer represents and warrants
that it has independently determined the fitness, need, usefulness, and applicability of the Manufacturer’s Products built
to Manufacturer's specifications it has ordered and does not rely on any representation of Subcontractor in that regard.

3.7
Engineering Services and Design Changes. Manufacturer may elect to utilize Subcontractor’s design engineering resources
(the “Engineering and Design Services”) to further customize Manufacturer’s Products. The cost of Engineering
and Design Services to be paid by Manufacturer will be agreed to in a written document setting forth the scope, timing and other
terms of such Engineering and Design Services executed by the Parties prior to any services being provided by Subcontractor. Subject
to the written agreement of the parties with respect to any resulting change in price, delivery schedule and other terms, Subcontractor
will accept design changes (i.e., Engineering Change Orders or "ECO's") according to Manufacturer's instructions.

3.8
Tooling, Setup and Non-Recurring Engineering ("NRE") Charges. Subcontractor agrees to provide Manufacturer with
a quote for any one-time tooling, setup or NRE charges payable by Manufacturer as a result of a change in design requested by Manufacturer,
change in minimum quantity requirements by Manufacturer as originally quoted by Subcontractor, or an addition to the Manufacturer’s
Products purchased under this Agreement requested by Manufacturer. If Manufacturer elects to proceed with the design change, minimum
quantity requirements change or addition as specified in Subcontractor's quote, Manufacturer will provide Subcontractor with written
acceptance of Subcontractor's quoted terms.

3.9 Inventory
Reports. Subcontractor agrees to report its inventory position to Manufacturer on a monthly basis, including the following
information: quantity of raw material, work in process and any open orders that cannot be cancelled to the supplier lead time.
The report will specifically identify any material on hand or on order where the quantity exceeds the agreed three (3) month forward
looking forecast plus safety stock as agreed upon by Subcontractor and Manufacturer. The Subcontractor and Manufacturer will review
inventory levels and safety stocks quarterly.

4. Delivery
and Shipping. The agreed upon delivery dates are based on the Subcontractor's projected lead time, current inventory, commitments
and Subcontractor’s advice. Manufacturer agrees and acknowledges that all shipment dates are firm delivery dates. All shipments
shall be F.O.B. the manufacturing facility unless otherwise mutually agreed upon in writing. The method and route of shipment shall
be at Subcontractor's discretion, unless Manufacturer supplies instructions in writing at least five days prior to shipment. In
addition to the purchase price, Manufacturer shall pay any and all transportation charges (including insurance). The risk of loss
of and title to the Manufacturer’s Products pass to Manufacturer upon the receipt of the Manufacturer’s Products by
the carrier. Subcontractor is not responsible for any installation of Manufacturer’s Products sold hereunder or delays caused
by Manufacturer-specified suppliers.

5.
Leased Space Agreement. Manufacturer will lease from Subcontractor a well-defined space for Manufacturer’s Products
within the Subcontractor’s current FDA registered manufacturer’s facility. Subcontractor is solely responsible for
maintaining all aspects of such leased space including but not limited to; (i) segregation of Manufacturer’s Products with
all Manufacturer’s Products clearly segregated and marked; and (ii) meeting all necessary requirements deemed appropriate
by the FDA and any regulatory authorities for a medical device manufacturer’s facility. Subcontractor will be also solely
responsible for remaining in good standings at all times with all regulatory authorities including but not limited to the standards
set forth by the FDA for medical device manufacturing facilities. The Manufacturer may list the address of the Subcontractor’s
current FDA registered manufacturer’s facility as the Manufacturer’s own FDA approved manufacturer’s facility
for the Manufacturer’s Products. The terms of such lease agreement will be mutually agreed to by the Parties in a
separate document.

6. Payment
Terms. Upon Subcontractor’s approval and acceptance of a production forecast provided by Manufacturer, Manufacturer’s
payment for Manufacturer’s Products will be due when forecasted materials or components must be ordered by the Subcontractor
as set forth in Section 3 above. A schedule of the forecast payables will be provided by the Subcontractor to the Manufacturer
based on the approved forecast. Components and products will only be procured and/or manufactured once payment has been received.
All payments will be made by electronic wire transfer and all of the appropriate forms will need to be signed so that this can
happen efficiently. Alternately, payments can be made to Subcontractor's address as shown Subcontractor's invoice. No offsets are
allowed to be taken by either Party. Manufacturer represents that all sales to Manufacturer under this Agreement are sales for
use in production or resale; therefore no sales, use, excise or other taxes are due as a result of such sales and Manufacturer
will be responsible for payment of any such taxes. A copy of the Manufacturer’s resale certificate will be provided by Manufacturer
within 15-days of the Effective Date.

7. Limited Warranty;
Nonconforming Products. Since Manufacturer is paying the actual manufacturing cost of the product, Supplier has not reserved
for any warranty related costs. The Manufacturer acknowledges that it is solely responsible for any warranty costs associated with
Manufacturer’s Products. Should any nonconformities be detected during or after the manufacturing process, Subcontractor
will assist Manufacturer in resolving any quality issues with the suppliers. Subcontractor will provide support to Manufacturer
to train Manufacturer’s employees to repair the non-conforming products as appropriate. Upon Manufacturer’s request,
Subcontractor will provide repair services for a fee equal to the actual cost of these services. In the event Manufacturer in good
faith believes that Manufacturer’s Products are nonconforming under the specifications agreed to among the Parties (the “Standards”),
Manufacturer shall give written notice to Subcontractor specifying in detail the nonconformity within thirty (30) days of Manufacturer's
receipt of such Manufacturer’s Products. Upon Manufacturer’s request, Subcontractor will facilitate such Manufacturer’s
Products being repaired or replaced, Manufacturer must return the Manufacturer’s Products to Subcontractor, transportation
charges prepaid by Manufacturer, within fifteen (15) days of the end of such thirty (30) date notice period.

 

Notwithstanding anything else in this
Agreement, Subcontractor makes no representations or warranties whatsoever with respect to: (i) any materials, components or subassemblies;
(ii) defects resulting from the Specifications or the design of the Manufacturer’s Products; (iii) Manufacturer’s Product
that has been abused, damaged, altered or misused by any person or entity after title passes to Manufacturer; (iv) first articles,
prototypes, pre-production units, test units or other similar Manufacturer’s Products; or (v) defects resulting from tooling,
designs or instructions produced or supplied by Manufacturer. Manufacturer shall be liable for costs or expenses incurred by Subcontractor
related to the foregoing exclusions to Subcontractor's express limited warranty.

 

If Subcontractor determines
that the Manufacturer’s Products are nonconforming under the Standards, Subcontractor, shall work with their vendors to rework
the Manufacturer’s Products or otherwise replace the Manufacturer’s Products. Manufacturer shall be liable for the
cost of rework or replacement and all associated costs therewith including, without limitation, transportation charges and inspection
fees. If requested by the Manufacturer, Subcontractor will provide a cause of failure, a failure analysis provided in Subcontractor's
standard format and correction action.

MANUFACTURER ACKNOWLEDGES THAT SUBCONTRACTOR
IS NOT THE MANUFACTURER OF MOST, IF NOT ALL, OF THE COMPONENTS OF THE Manufacturer’s
PRODUCTS OR ANY THIRD PARTY MANUFACTURER'S AGENT. SUBCONTRACTOR MAKES NO REPRESENTATIONS OR WARRANTIES IN CONNECTION WITH THE PRODUCTS
OR COMPONENTS THEREOF WHICH SUBCONTRACTOR DID NOT MANUFACTURE. FURTHER, SUBCONTRACTOR SPECIFICALLY DISCLAIMS ALL WARRANTIES, EXPRESS
OR IMPLIED, IN FACT OR BY OPERATION OF LAW OR OTHERWISE, CONTAINED IN OR DERIVED FROM THIS AGREEMENT, ANY ORDER, OR IN ANY OTHER
MATERIALS, BROCHURES, PRESENTATIONS, SAMPLES, MODELS OR OTHER DOCUMENTATION OR COMMUNICATIONS WHETHER ORAL OR WRITTEN, INCLUDING,
WITHOUT LIMITATION, IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, CONFORMANCE WITH THIRD PARTY MANUFACTURER'S
SPECIFICATIONS OR OTHERWISE, WHICH WOULD EXTEND BEYOND THE WARRANTIES EXPRESSLY CONTAINED HEREIN. SUBCONTRACTOR AUTHORIZES MANUFACTURER
TO ASSERT AT MANUFACTURER'S EXPENSE FOR SUBCONTRACTOR'S ACCOUNT, ALL OF SUBCONTRACTOR'S RIGHTS UNDER ANY APPLICABLE THIRD PARTY
MANUFACTURER'S WARRANTY, AND SUBCONTRACTOR AGREES TO COOPERATE WITH MANUFACTURER IN ASSERTING SUCH RIGHTS; PROVIDED, HOWEVER,
THAT MANUFACTURER WILL DEFEND, INDEMNIFY AND HOLD SUBCONTRACTOR HARMLESS FROM AND AGAINST ANY LOSS, LIABILITY OR EXPENSE, INCLUDING
REASONABLE ATTORNEY'S FEES, RESULTING FROM OR ARISING IN CONNECTION WITH ANY ACTION BY MANUFACTURER RELATING TO THE ABOVE AUTHORIZATION.
THIS SECTION 7 SETS FORTH SUBCONTRACTOR'S SOLE AND EXCLUSIVE LIABILITY, AND MANUFACTURER'S SOLE AND EXCLUSIVE REMEDY, AS TO ANY
FAILURE OF THE Manufacturer’s PRODUCTS TO MEET THE WARRANTY STANDARDS.

 

8. Orders;
Termination. 

8.1 Orders: All orders whether for Manufacturer’s
Products or components or inventory to be used in the manufacture of Manufacturer’s Products are non-cancellable.

 

8.2 Termination.
Either Party may terminate this Agreement and either may terminate a purchase order, effective upon written notice in any of the
following events: (a) the other Party materially breaches this Agreement and such breach remains uncured for thirty (30) days following
written notice of breach to the breaching Party; (b) the other Party (i) voluntarily suspends transaction of business; (ii) becomes
insolvent or unable to pay any indebtedness as it matures; (iii) commences a voluntary case in bankruptcy or a voluntary petition
seeking reorganization or to effect a plan or other arrangement with creditors; (iv) makes an assignment for the benefit of creditors;
(v) applies for or consents to the appointment of a receiver or trustee for it or for any substantial portion of its property;
(vi) makes an assignment to an agent authorized to liquidate any substantial part of its assets; (vii) has an involuntary case
commenced against it with any court or other authority seeking liquidations, reorganization or a creditor's arrangement; (viii)
by an order of any court or other authority, has appointed any receiver of trustee for it or for any substantial portion of its
property; or (ix) has a writ or warranty of attachment or any petition seeking liquidation, reorganization or a creditor's arrangement
or such order appointing a receiver or trustee is not vacated or stayed, or such writ, warranty of attachment or similar process
is not vacated, released or bonded off within thirty (30) days after its entry or levy.

 

8.3 Party Liability
Upon Termination 

 

		a)	Manufacturer Termination Without Cause. If the Manufacturer terminates this Agreement or
cancels any purchase order without cause pursuant to Section 8.2, Subcontractor will stop all shipments and retain all inventory.
Subcontractor may, at its sole discretion, assist Manufacturer in the liquidation of any inventory that is generic that does not
utilize any of Subcontractor’s technology. Manufacturer shall be liable for cancellation charges including the Product Costs
and the costs as provided in Section 3.8.

 

		b)	Manufacturer Termination With Cause. If the Manufacturer terminates this Agreement or cancels
any purchase order for cause pursuant to Section 8.2 Manufacturer shall not be liable for any termination or cancellation charges
but Subcontractor may, at Subcontractor's sole discretion, purchase all or part of any remaining inventory.

 

c) Subcontractor
Termination for Cause. If the Subcontractor terminates this Agreement or any purchase order for cause pursuant to Section 8.2,
Manufacturer shall be liable for cancellation charges including the Product Costs and the costs as provided in Section 3.8. Subcontractor
may at its sole discretion make commercially reasonable efforts to mitigate these costs by attempting to return products or components
thereof to suppliers.

 

 

9. Joint Marketing.
Subcontractor and Manufacturer have agreed to assist each other with marketing in other channels. When the Subcontractor helps
the Manufacturer there will be a marketing fee associated with that assistance. When the Manufacturer helps the Subcontractor there
will likewise be a marketing fee associated with that assistance. The Subcontractor and Manufacturer will mutually agree on the
marketing fee before any assistance is provided. In some cases the marketing fee will be a percentage of the margin received by
the other Party. The terms of such joint marketing agreement will be mutually agreed to by the Parties in a separate document.

 

10. Limitation of
Liability. No Other Liability. IN NO EVENT
SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY "COVER" DAMAGES (INCLUDING INTERNAL COVER DAMAGES WHICH THE PARTIES
AGREE MAY NOT BE CONSIDERED DIRECT DAMAGES), OR ANY INCIDENTAL, CONSEQUENTIAL, SPECIAL OR PUNITIVE DAMAGES OF ANY KIND OR NATURE
ARISING OUT OF THIS AGREEMENT OR THE SALE OF Manufacturer’s PRODUCTS,
WHETHER SUCH LIABILITY IS ASSERTED ON THE BASIS OF CONTRACT, TORT (INCLUDING THE POSSIBILITY OF NEGLIGENCE OR STRICT LIABILITY),
OR OTHERWISE, EVEN IF THE PARTY HAS BEEN WARNED OF THE POSSIBILITY OF ANY SUCH LOSS OR DAMAGE, AND EVEN IF ANY OF THE LIMITED REMEDIES
IN THIS AGREEMENT FAIL OF THEIR ESSENTIAL PURPOSE. Neither party shall be liable for any damages arising from delay in manufacture,
shipment or delivery of any Manufacturer’s Products, if such
delays are due to force majeure, as defined in Section 15.2. 

 

11. Confidentiality;
Public Announcements; Non-Use; Intellectual Property Rights.

 

11.1 Confidentiality.
Parties acknowledge that during the term of this Agreement, either Party may disclose to the other Party from time to time certain
business, product pricing, financial, marketing, technical and other proprietary and sensitive information of each party. Both
Parties shall use commercially reasonable efforts to keep confidential (a) the existence and terms of this Agreement and all information
concerning the unit number and fees for Manufacturer’s Products and inventory, and (b) any and all information concerning
customers, suppliers, trade secrets, methods, processes or procedures and any other confidential, financial and business information
of the other Party that is marked “Confidential" or the like or, if delivered verbally, confirmed in writing to be "Confidential"
within thirty (30) days of the initial disclosure ("Confidential Information") with the same standard of care as it uses
for its own Confidential Information. Neither Party shall disclose Confidential Information to any third Party without the prior
written consent of the other party, except that both parties agree that the other party may disclose Confidential Information to
its auditors and contractors under an obligation of confidentiality, to governmental authorities having jurisdiction over such
Party or as otherwise required by applicable law, provided however, in the event the Manufacturer or Subcontractor is ordered to
provide Confidential Information by a lawful judicial or government order, the party who is subject to such order shall promptly
inform the Party whose information is to be disclosed and shall permit the Party to defend against such order of disclosure and
shall assist in such defense to the extent permitted by law. In no other circumstances may the Manufacturer or Subcontractor disclose
information without the consultation and prior written consent of the non-disclosing Party.

 

Confidential Information of either
Party hereto shall not include information which (i) is in the public domain, (ii) is previously known or independently developed
by the receiving Party, (iii) is acquired by the receiving Party from any third party having a right to disclose such information
or (iv) the receiving party is obligated to produce under a court or governmental order; provided, the disclosing Party complies
with the notice requirements of the previous paragraph with respect the information subject to such court or governmental order.
The Parties acknowledge that a breach by either Party of this Section 11 will give rise to irreparable injury to the other,
inadequately compensable in damages. Accordingly, the Parties hereby consent to allow the other Party to seek injunctive relief
against the breach or threatened breach of the undertakings of the Parties contained in this Section 11. The Parties further agree
that such an order so enjoining a Party may be issued pending final determination thereof, without the requirement to post bond.

 

11.2 Public Announcements.
Each Party reserves the right to publish press
releases and public announcements (collectively, the “Publications”) pertaining to this Agreement; provided,
however, no Publications will contain any Confidential Information of a Party
without such Party’s prior written consent.  The publishing Party shall indemnify and hold the non-publishing Party
its, officers, agents, shareholders, and employees harmless against any and all claims, demands, damages, liabilities and costs
which directly or indirectly result from, or arise in connection with, any negligent act or omission of the disclosing Party, its
agents, or employees, pertaining to such disclosing Party’s Publications under this Agreement.

 

11.3 Non-Use.
Each Party to this Agreement acknowledges and agrees that at any time during the Term of this Agreement and at all times following
the termination of this Agreement, neither Party may use any Confidential Information, Inventions and Intellectual Property (as
these terms are defined in Section 11.3 below) of the other Party for any purpose other than in conjunction with its obligations
under this Agreement. The Parties further agree that neither Party may analyze, or reverse engineer any samples, software or hardware
provided by the other Party to determine composition, method of manufacture, or construction.

 

11.4 Intellectual Property
Rights. Except as otherwise expressly provided in this Section 11,4, all inventions, discoveries, and trade secrets whether
or not patentable, that are made by Subcontractor or Manufacturer, either alone or with others, in the course of its performance
of its obligations under this Agreement (collectively, "Inventions") will become the exclusive property of Subcontractor.
In the event this Agreement terminates for any reason or no reason, all licenses of Subcontractor’s patents, trademarks,
software, trade secrets or other intellectual property (collectively the “Intellectual Property”) of Subcontractor,
granted expressly or otherwise to Manufacturer under the terms of this Agreement or any other Agreement between Subcontractor and
Manufacturer shall immediately terminate and Manufacturer must immediately cease use of all of Subcontractor’s Intellectual
Property.

 

12. Manufacturer's
Indemnity. Manufacturer shall indemnify, defend and hold Subcontractor and its affiliates ("Subcontractor Indemnities")
harmless from and against any and all loss, liability or expense, including reasonable attorneys' fees, resulting from or
arising in connection with any claim or suit by any third party against the Subcontractor Indemnities (i) alleging infringement
or dilution of any copyright, trademark, trade name, trade secret, patent or other third party proprietary rights, relating to
the design, manufacture, sale, normal use or normal disposition of any Manufacturer’s Products built to the specification
of Manufacturer, (ii) alleging any failure of any Manufacturer’s Product (or any Manufacturer’s Product components
contained therein) sold by Subcontractor hereunder to comply with any safety standards or any environmental regulations, or (iii)
alleging loss, damages, bodily injury, sickness, disease, or death, or injury to property which is caused by (1) the negligence
or intentional acts of Manufacturer, its agents, employees or subcontractors, or (2) a defect in Manufacturer Specifications or
Manufacturer specified materials, components or design of the Manufacturer’s Products or caused by Manufacturer specified
suppliers; provided however, that Subcontractor shall have the right, at its option, to participate in the defense of any
such claim or suit, without relieving Manufacturer of any obligations hereunder.

 

13.
Ownership of Tooling and Testing Equipment. All tooling and testing equipment used in connection with this Agreement shall
be owned by Subcontractor.

14.
Regulatory Compliance and Record Keeping.

14.1       Approvals.
Manufacturer shall be registered as the manufacturer of Manufacturer’s Products and shall obtain such approvals from the
United States Food and Drug Administration (the “FDA”) and other regulatory bodies, public or private as may be required
to manufacture and sell the products in the United States or internationally. Both Manufacturer and Subcontractor shall be responsible
for complying with all federal, state and local laws, rules, regulations, guidelines and the like in the United States and in other
countries as they may pertain to the Manufacturer’s Products and to the obligations on the Parties to perform under this
Agreement, including, without limitation, requirements in the United States with respect to registration of establishment, listing
of medical devices, reporting of deaths, serious injuries and certain malfunctions under 21 CFR Medical Device Regulations and
the potential therefore, tracking of medical devices, recalls, safety alerts and process controls. In no event shall either Party
assume any risk arising out of the other Party’s failure to comply with such laws, rules, regulations, guidelines and the
like, and each Party shall cooperate with the other in all respects to facilitate and promote strict compliance with the provisions
of this Section 14.

14.2       Regulatory
Inspection and Revision of Specifications. Following inspections by applicable regulatory authorities, including, without
limitation, the FDA, Subcontractor shall do such actions or cause such actions to be done that are necessary, advisable or appropriate
so that Subcontractor remains in good standing with any such regulatory authorities. Prior to undertaking any action pursuant to
this section, Subcontractor shall notify Manufacturer of the inspection and disclose to Manufacturer the regulatory authorities’
findings and related results of such inspection (the “Findings”) pertaining to the business with Manufacturer. Subcontractor
shall also provide full disclosure to Manufacturer with respect to any action undertaken or proposed to be undertaken pursuant
to this Section prior to acting. Subcontractor shall keep correct and complete records and books covering the manufacture of the
Manufacturer’s Products and other documents relating to this Agreement. Each of the Parties will immediately notify the other
of any complaints, adverse events, deaths or serious injuries relating to Manufacturer’s Products that are manufactured by
Subcontractor. All complaints, adverse events, deaths or serious injuries pertaining to Manufacturer’s Products will be reported
to Subcontractor’s Quality Assurance departments in accordance with the requirements established in Subcontractor’s
and Manufacturer’s Complaints Handling and Reporting procedures. All complaint related Manufacturer’s Products returned
to Manufacturer will be forwarded to Subcontractor for complaint handling and failure investigation. Subcontractor agrees to provide
Manufacturer, at Manufacturer’s expense and reasonable request and during ordinary business hours, access to, and copies
of, such records, books and all other documents and materials in the possession and under the control of Subcontractor relating
to or pertaining to the subject matter of this Agreement; including, but not limited to, the following:

		a)	Subcontractor will provide Manufacturer a schedule of all audits of Subcontractors for materials
used in the manufacture of Manufacturer’s Products upon request. The schedule will be provided in accordance with the requirements
established in Subcontractor’s Auditing procedure. Reports on all material Subcontractors for the Manufacturer’s Products
will be made available to Manufacturer upon request.

		b)	Upon reasonable notice, Manufacturer may review at any time routine reports relating to all nonconforming
materials identified by Subcontractor during the manufacture or inspection of the Manufacturer’s Products.

Subcontractor shall maintain quality systems
in compliance with ISO 9001 (the 2000 or current version) and the Quality System Requirements of the FDA.

 

14.3       Change
Notification. Subcontractor will notify Manufacturer and obtain approval prior to implementing changes that may
require amendments to the Device Master Record, manufacturing process changes or material changes relating to the manufacture and
distribution of Manufacturer’s Products. Manufacturer will notify Subcontractor of all changes to the Device Master Record,
manufacturing process changes or material changes relating to the manufacture of Manufacturer’s Products manufactured by
Subcontractor. Manufacturer will provide appropriate documentation to Subcontractor to effect any changes to the Device Master
Record, manufacturing process or changes in materials.

 

15.
General Provisions. 

15.1
Notice. Notice shall be deemed effective and delivered three days after mailing if sent certified mail, return receipt
requested, or when received if sent by electronic mail (e-mail), telecopy, prepaid courier, express mail or personal delivery to
the intended recipient thereof at the address shown on the first page hereof with confirmation of delivery, or to such other address
as either Party may specify in a written notice to the other Party pursuant hereto.

15.2
Force Majeure. Except as otherwise provided herein, neither Party shall be liable to the other for its failure to perform
any of its obligations hereunder during any period in which performance is delayed by circumstances beyond its reasonable control,
including, without limitation, an act of God, war, civil disturbance, court order, labor dispute, third party nonperformance, acts
of third parties, or failures, fluctuations or non-availability of materials, components, electrical power, heat, light, air conditioning,
computing or information systems or telecommunications ("force majeure"), provided that the Party experiencing such delay
promptly notifies the other Party of the delay and the cause thereof. The happening of any contingency beyond Subcontractor's reasonable
control, including delays caused by Manufacturer or suppliers, shall not constitute cause for cancellation of Manufacturer's order,
but shall extend Subcontractor's time to ship goods for a period equal to the duration of such contingency.

15.3
Relationship of Parties. Subcontractor, in providing Manufacturer’s Products hereunder, is acting as an independent
contractor and does not undertake by this Agreement or otherwise to perform any obligation of Manufacturer, or to assume liability
for Manufacturer's business or operations. Subcontractor has the sole right and obligation to supervise, manage, contract, direct,
procure, perform, or cause to be performed, all work to be performed by Subcontractor hereunder.

15.4
Right of Subcontractor to Sell Products to Others. Manufacturer understands and agrees that Subcontractor may itself use,
manufacture or sell similar products as provided to Manufacturer hereunder to third parties and affiliates, some of whom may be
competitors of Manufacturer, so long as: (a) Subcontractor does not use or disclose any Confidential Information of Manufacturer,
(b) Subcontractor and third party do not infringe any of Manufacturer's patents or other intellectual property rights.

15.5
No Third Party Beneficiaries. The Parties agree that this Agreement is for the benefit of the Parties hereto only and is
not intended to confer any legal rights or benefits on any third party, and that there are no third party beneficiaries to this
Agreement or any part or specific provision of this Agreement.

15.6 Attorneys'
Fees. The prevailing Party in any legal proceedings brought by or against the other Party to enforce any provision of this
Agreement shall be entitled to recover against the non-prevailing Party the reasonable attorneys' fees, court costs and other expenses
incurred by the prevailing Party.

 

15.7 Assignment; Change
of Control. Neither Party may assign or transfer this Agreement by operation of law or otherwise. Any assignment made by
either Party in contravention of this Section 15.7 shall be null and void for all purposes. In the event of a Change of Control
(as defined below) this Agreement shall immediately terminate.  A Change of Control shall occur with respect to the Manufacturer,
unless Subcontractor shall have expressly consented to such Change of Control in writing.  A “Change of Control”
shall mean any event or circumstance as a result of which (i) any “Person” or “group” (as such terms are
defined in Sections 13(d) and 14(d) of The Securities Exchange Act of 1934 (the “Exchange Act”), as in effect on the
date hereof), other than the Subcontractor, is or becomes the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5
under the Exchange Act), directly or indirectly, of 50% or more on a fully diluted basis of the then outstanding voting equity
interest of the Company, (ii) the board of directors of the Manufacturer shall cease to consist of a majority of the Manufacturer’s
board of directors on the date hereof (or directors appointed by a majority of the board of directors in effect immediately prior
to such appointment) or (iii) the Manufacturer or any of its affiliates merges or consolidates with, or sells all or substantially
all of its assets to, any other person or entity;

 

15.8
Amendment. This Agreement may be amended only by written amendment duly signed by authorized representatives of both Parties.

15.9 Non-Solicitation
of Employees. During the term hereof and for a period of five (5) years thereafter, each Party agrees not to, either directly
or indirectly, for itself or on behalf of any other person, firm, partnership, corporation or other entity hire, solicit, contract
for, attempt to solicit, or cause to be solicited, the employment or services of any current or previous employee of the other
Party (unless a period of sixty months has elapsed from the last date that such employee was employed by such party) without the
prior written consent of such other Party. Each Party agrees that in the event it violates the provisions of this Section 15.9,
it will pay to the other Party as liquidated damages, and not as a penalty, an amount equal to one hundred times (100 X) of any
such employee's then-current base annual salary.

 

15.10 Severability;
Validity. If any provision of this Agreement is held invalid or unenforceable under applicable law, the parties agree to
renegotiate such provision(s) in good faith, in order to maintain or achieve the economic position enjoyed by each Party as close
as possible to that under the provision(s) rendered unenforceable. In the event that the Parties cannot reach a mutually agreeable
and enforceable replacement for such provision(s), then (i) such provisions shall be excluded from this Agreement, (ii) the balance
of the Agreement shall be interpreted as if such provision(s) were so excluded, (iii) the balance of the Agreement shall be enforceable
in accordance with its terms, and (iv) the parties will revise the Agreement to effect the intent of such excluded provisions.

 

15.11
Waiver. Any waiver of any kind by a Party of a breach of this Agreement must be in writing, shall be effective only to
the extent set forth in such writing and shall not operate or be construed as a waiver of any subsequent breach. Any delay or omission
in exercising any right, power or remedy pursuant to a breach or default by a Party shall not impair any right, power or remedy
which either Party may have with respect to a future breach or default.

15.12 Dispute Resolution.

 

15.12.1 Obligation
to Negotiate. Any dispute arising out of or relating to this Agreement shall be resolved exclusively in accordance with
the procedures specified in this Section 15.12. The Parties shall attempt in good faith to resolve any dispute arising out of or
relating to this Agreement by negotiation between a committee composed of four (4) members (two (2) from each Party) mutually agreed
upon from the Subcontractor and Manufacturer boards of directors. Any Party may give the other Party written notice of any dispute
not resolved in the normal course of business. Such notice shall include (a) a statement of that Party’s position and a summary
of arguments supporting that position, and (b) the name and title of the executive who will be representing that Party and of any
other person who will accompany the executive in the negotiations. Within fifteen (15) days after delivery of the notice, the receiving
Party shall respond with (a) a statement of that Party’s position and a summary of arguments supporting that position, and
(b) the name and title of the executive who will represent that Party and of any other person who will accompany the executive
in the negotiations. Within thirty (30) days after delivery of the initial notice, the executives of both Parties shall meet at
a mutually acceptable time and place and thereafter as often as they reasonably deem necessary to attempt to resolve the dispute.
All reasonable requests for information made by one Party to the other will be honored. All negotiations pursuant to this clause
are confidential and shall be treated as compromise and settlement negotiations for purposes of applicable rules of evidence.

 

15.12.2 Mediation.
If the dispute has not been resolved by the negotiation process specified in Section 15.12.1 within forty-five (45) days following
the initial notice, the Parties may endeavor to settle the dispute by mediation under the then current CPR Mediation Procedure
published by the CPR Institute for Dispute Resolution (NYC). Unless otherwise agreed, the Parties will select a mediator from the
CPR Panels of Distinguished Neutrals.

 

15.12.3 Choice
of Law; Venue. If any dispute has not been resolved by a non-binding procedure as provided herein, within one-hundred twenty
(120) days of the initiation of such procedure the complaining Party may seek such legal or equitable relief as may be appropriate
in the federal or state courts located in Maricopa County, Arizona. The Parties agree that this
Agreement shall be governed by and construed in accordance with the laws of the State of Arizona without regard to conflicts of
law provisions thereof or any other applicable law and that exclusive venue shall be in the federal or state courts located
in Maricopa County, Arizona. Nothing stated herein is intended to limit either Party’s right to seek emergency, temporary
or permanent injunctive relief and both Parties expressly agree that either Party will be entitled to such relief to prevent actual
or threatened violation of the confidentiality provisions in Section 11 herein. If there is a dispute or legal action regarding
this agreement, the prevailing Party shall be entitled to reasonable attorney’s fees and costs.

 

15.13
Binding Effect; Recitals. This Agreement shall be binding on and inure to the benefit of the Parties and their respective
successors and assigns. The recitals to this Agreement are incorporated into and shall constitute a part of this Agreement.

15.14 Survival.
The rights, limitations, obligations and duties under Sections 7, 10, 11, 12, 14 and 15 shall survive the expiration or
termination of this Agreement.

 

15.15 Entire Agreement.
This Agreement and the attachments attached hereto contain the entire agreement of the Parties with respect to the subject matter
of this Agreement, and supersede all prior negotiations, agreements and understandings with respect thereto. 

 

 

Signature Page to Follow

    	 	 	 

     

    

 

IN
WITNESS WHEREFORE, the Parties have caused this Agreement to be executed by their duly authorized representatives as set forth
below:

 

ZOUNDS
HEARING, Inc.

 

 

Date: ________________________        By:______________________________

 

Name: Samuel L. Thomasson

 

Title: President &
Chief Executive Officer

 

Address: 6825 W. Galveston Street, Suite 9

 Chandler, AZ
85226

Fax: _____________________________

Email: ____________________________

 

 

 

 

Innerscope
Hearing Technologies, Inc. 

 

Date: ________________________
        By:________________________________

 

Name:        Matthew
Moore

 

Title:        CEO

 

Address: 2151 Professional
Drive 2nd Floor

 Roseville, CA. 95616

Fax: (916) 218-4101

Email: matthew@innd.comNOVATION, ASSIGNMENT AND ASSUMPTION AGREEMENT

This AGREEMENT is dated September 28, 2018.

THE PARTIES TO THIS AGREEMENT ARE AS FOLLOWS:

	(1)	
CERES MANAGED FUTURES LLC, a Delaware limited liability company (“CMF”);

	(2)	
EMERGING CTA PORTFOLIO L.P., a New York limited partnership (the “Partnership”);

	(3)	
THE CAMBRIDGE STRATEGY (ASSET MANAGEMENT) LIMITED, a limited liability company incorporated in England and Wales (“Cambridge”); and

	(4)	
MESIROW FINANCIAL INTERNATIONAL UK LIMITED, a limited liability company incorporated in England and Wales (“Mesirow”).

BACKGROUND

	(A)	
CMF, the Partnership and Cambridge entered into an amended and restated management agreement dated as of October 1, 2013, as amended on January 1, 2018 (the “Initial Advisory Agreement”), pursuant to which Cambridge agreed to render and implement advisory services to the Partnership.

	(B)	
Cambridge wishes to transfer all of its rights and obligations under the Initial Advisory Agreement to Mesirow, and Mesirow wishes to assume all of such rights and obligations of Cambridge under the Initial Advisory Agreement.

	(C)	
Mesirow is authorised and regulated by the Financial Conduct Authority of the United Kingdom.

	(D)	
Mesirow is registered with the U.S Commodity Futures Trading Commission as a commodity trading advisor and is a member of the National Futures Association (“NFA”).

	(E)	
The parties have therefore agreed to novate Cambridge’s rights, obligations and liabilities under the Initial Advisory Agreement to Mesirow on the terms of this Novation, Assignment and Assumption Agreement with effect from October 1, 2018 (the “Effective Date”).

NOW, THEREFORE, in consideration of the mutual covenants contained in this Novation Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

	1.	
DEFINITIONS

Terms defined in the Initial Advisory Agreement are used herein as so defined, unless otherwise provided in this Agreement.

		2.	
NOVATION

	2.1	
Cambridge transfers all of its future rights, obligations and liabilities under the Initial Advisory Agreement to Mesirow. Mesirow shall enjoy all the rights and benefits of Cambridge under the Initial Advisory Agreement as of and after the Effective Date, and all references to Cambridge in the Initial Advisory Agreement shall be read and construed as references to Mesirow.

 

 

1

	2.2	
As of and after the Effective Date, Mesirow agrees to perform the Initial Advisory Agreement and be bound by its terms in every way as if it were the original party to it in place of Cambridge.

	2.3	
CMF and the Partnership (together the “Continuing Parties”) agree to perform the Initial Advisory Agreement and be bound by its terms in every way as if Mesirow were the original party to it in place of Cambridge.

	3.	
RELEASE OF OBLIGATIONS AND LIABILITIES

	3.1	
CMF and the Partnership release Cambridge from all future obligations to them under the Initial Advisory Agreement and Cambridge releases the Continuing Parties from all future obligations to it under the Initial Advisory Agreement.

	3.2	
Each of CMF and the Partnership releases and discharges Cambridge from all claims and demands under or in connection with the Initial Advisory Agreement that arise on or after the Effective Date, and in each case whether known or unknown to the releasing party; provided that such release and discharge shall not affect any rights, liabilities or obligations of the Continuing Parties or Cambridge with respect to payments or other obligations due and payable or due to be performed prior to the Effective Date, and all such payments and obligations shall be paid or performed by the Continuing Parties or Cambridge (as the case may be) in accordance with the terms of the Initial Advisory Agreements..

	3.3	
Each of CMF, the Partnership and Mesirow shall have the right to enforce the Initial Advisory Agreement and pursue any claims and demands under the Initial Advisory Agreement against the others with respect to matters arising on or after the Effective Date.

	3.4	
Mesirow shall not be responsible for any liability of Cambridge that arises in connection with the advisory services provided by Cambridge to the Partnership under the Initial Advisory Agreement prior to the Effective Date.

	3.5	
Notwithstanding any other provision of this Agreement, Cambridge agrees to indemnify CMF and the Partnership and their affiliates with respect to any matters arising prior to the Effective Date as though Section 6 of the Initial Advisory Agreement were still in effect with respect to Cambridge, and further agrees to maintain a gap insurance policy in the amount of USD$100,000 for a period of no less than 3 years from the date of this Agreement and name CMF and the Partnership as additional insured on such policy.

	4.	
GOVERNING LAW

This Agreement and any dispute arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with the law of the State of New York.

	5.	
ARBITRATION

The parties agree that any dispute or controversy arising out of or relating to this Agreement or the interpretation thereof, shall be settled by arbitration in accordance with the rules, then in effect, of NFA or, if NFA shall refuse jurisdiction, then in accordance with the rules, then in effect, of the American Arbitration Association; provided, however, that the power of the arbitrator shall be limited to interpreting this Agreement as written and the arbitrator shall state in writing his reasons for his award, and further provided, that any such arbitration shall occur within the Borough of Manhattan in New York City. Judgement upon any award made by the arbitrator may be entered in any court of competent jurisdiction.

 

 

2

	6.	
COUNTERPARTS

This Agreement may be executed in one or more counterparts, each of which will be deemed an original agreement and all of which will constitute one and the same instrument.

IN WITNESS WHEREOF the parties have executed this Agreement on the day and year first written above with effect from and including the Effective Date.

 

	
CERES MANAGED FUTURES LLC

 

	
THE CAMBRIDGE STRATEGY (ASSET MANAGEMENT) LIMITED

	 	 
	
By:

	 

/s/ Patrick T. Egan                     

	
By:

	 

/s/ Edward D. Baker               

	 	
Patrick T. Egan

	
NAME:

	
Edward D. Baker

	 	
President and Director

	
TITLE:

	
Executive Chairman

	 	 
	 	 
	
EMERGING CTA PORTFOLIO L.P.

	
MESIROW FINANCIAL INTERNATIONAL UK LIMITED

	 	 
	
By:

	
Ceres Managed Futures LLC

(General Partner)

	 
	 	 	 
	
By:

	 

/s/ Patrick T. Egan                     

	
By:

	 

/s/ Jeff Levine                          

	 	
Patrick T. Egan

	
NAME:

	
Jeff Levine

	 	
President and Director

	
TITLE:

	
Senior Managing Director

 

 

 

 

3

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