Document:

Exhibit 10.37

 

Suneva Confidential

 

 

 

AMENDED & RESTATED DISTRIBUTION
AND SUPPLY AGREEMENT

 

BETWEEN

 

SUNEVA MEDICAL, INC.

 

AND

 

HANGZHOU ST. NOVA TRADE CO., LTD

 

 

 

 

 

 

     

     

    

 

Suneva Confidential

 

THIS
AMENDED & RESTATED DISTRIBUTION AND SUPPLY AGREEMENT (“Agreement”) is made as of this 6th day of June,
2017 (“Effective Date”) between

 

SUNEVA MEDICAL, INC., a Delaware corporation with
its principal office at 5870 Pacific Center Blvd, San Diego, CA 92121 (hereinafter called “SUNEVA”) and

 

HANGZHOU ST NOVA TRADE CO., LTD, dba St. Nova Medical,
a corporation organized under the laws of the People’s Republic of China with its principal office at 290 Zhongshan North Rd,
Xiacheng Dist., Hangzhou, Zhejiang, China 310000 (hereinafter called “St. Nova”), collectively (“the Parties”).

 

Defined terms used in this Agreement shall have the meanings
set forth in Section 1 hereof, except as otherwise provided herein.

 

WHEREAS, SUNEVA is engaged in
the development, manufacture and sale of Bellafill (“Product(s)”), a long-lasting dermal filler, and wishes to market it in
the Territory;

 

WHEREAS, St. Nova is a distributor and seller of
medical and aesthetic products in the Territory and desires to obtain an exclusive right to distribute, promote and sell Product(s) in
the Territory;

 

WHEREAS, SUNEVA
has agreed, subject to the terms and conditions of the Agreement, to grant St. Nova and St. Nova has agreed to accept, the exclusive
right to distribute the Product(s) in the Territory and to manufacture and supply to St. Nova on an exclusive basis in the Territory
all of St. Nova’s requirements of the Product(s);

 

WHEREAS, St. Nova has agreed to undertake obtaining
Territory Regulatory Approval for distribution of such Product(s) in the Territory;

 

WHEREAS, the parties have executed a December 16,
2014 Distribution and Supply Agreement and now wish to amend and restate that agreement; and

 

WHEREAS, the parties now wish to memorialize and
reduce to an enforceable, binding contract, the understanding between them.

 

NOW, THEREFORE, the parties agree as follows:

 

		1.	DEFINITIONS

 

For the purposes of this Agreement the following terms have
the following meanings:

 

		1.1	“Affiliates” shall mean (a) an entity controlled
by a common parent that owns more than fifty percent of the voting stock of both such entity and one of the parties to this Agreement
and (b) such parent company.

 

     

     

    

 

		1.2	“Applicable Law” shall mean all applicable
common law, statutes, ordinances, rules, regulations, codes, requirements, laws or orders of any Governmental Authority.

 

		1.3	“Batch or Lot”, with respect to the Product(s), shall mean a separate and distinct quantity of such Product(s)
processed under continuous and identical conditions and designated by a batch or lot number.

 

		1.4	“Partnership Plan” shall mean a mutually agreeable, approach to the clinical, regulatory and commercial deliverables,
including key milestones and timelines to be developed as the Partnership Plan is executed.

 

		1.5	“Certificate of Analysis” shall mean a document certifying that a Batch or Lot of any Product meets all Specifications.

 

		1.6	“Dollar(s) or $” means United States Dollars.

 

		1.7	“FOB Origin” shall mean St. Nova pays Product(s)’ shipping cost, and takes ownership
of, title to and responsibility for the Product(s) when the Product(s) leaves SUNEVA’s Facility.

 

		1.8	“cGMP” shall mean current good manufacturing practices as required by the rules and regulations of the Territory
Regulatory Authority.

 

		1.9	“Governmental Authority” shall mean all agencies, commissions, officials,
                                                                                                         courts and other governmental and regulatory authorities and instrumentalities of the United States, the Territory and any other
                                                                                                         countries in which the Product(s) are manufactured, marketed, sold, tested, investigated or regulated, and all states or other
                                                                                                         political subdivisions thereof and supranational bodies applicable thereto.

 

		1.10	“IFU” or Instructions For Use shall mean the Territory Regulatory Authority- approved Instructions For Use of the
Product(s), including any subsequent revisions thereto. A copy of the current FDA approved IFU is attached hereto as part of Schedule
A. Suneva shall inform St. Nova about any material change or amendment to the IFU.

 

		1.11	“Launch Date”, shall mean the date of first commercial sale of the Product(s)
                                                                                                     by St. Nova in the Territory, which in no case may be later than sixty (60) days following Territory Regulatory Approval.

 

		1.12	“Launch Notice” shall have the meaning set forth in Section 6.1 hereof.

 

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		1.13	“Minimum Milestones” shall mean the minimum annual purchase obligations set forth in Schedule C, which shall
be amended according to the Partnership Plan.

 

		1.14	“Product(s)” shall mean only the Product(s) set forth on Schedule A as may be amended by mutual written
agreement of the parties from time to time.

 

		1.15	“SUNEVA’s Facility” shall mean the facility or the facilities in which SUNEVA shall manufacture and export the
Product(s) for sale to St. Nova.

 

		1.16	“SUNEVA’s Marks” shall have the definition set forth in section 18.3.

 

		1.17	“Specifications” means the specifications for any Product(s) as agreed to by the parties and as approved by the
applicable Regulatory Authority and/or by the Territory Regulatory Authority. The Specifications for the Product in Schedule A may be
amended by SUNEVA from time to time, only if specifically requested by applicable Regulatory Authorities. SUNEVA shall provide St. Nova
reasonable advance written notice of any material changes to the Specifications.

 

		1.18	“Technical Information” shall mean the design and manufacturing process and any and all technical knowledge, trade
secrets, analytical methodology, processes, manufacturing and toxicological information, and any and all other technical information or
experience related to the design and manufacturing of the Product(s).

 

		1.19	“Territory” shall mean The People’s Republic of China (“PRC”), including the Special Administrative
Regions of Hong Kong and Macau and also including Taiwan. For avoidance of doubt, all of the above shall be included in the definition
of “Territory” and any provision applicable only to a part of the Territory, e.g. Hong Kong, shall expressly so state.

 

		1.20	“Territory Regulatory Approval” shall mean any and all approvals from the relevant authorities in any part of the
Territory (PRC, Hong Kong, Macau, Taiwan) to market, sell and distribute Product(s) in any such part of the Territory.

 

		1.21	“Territory Regulatory Authority” means any and all bodies and organizations regulating the manufacture, importation,
distribution, use and sale of the Product(s) in the Territory or any part thereof, including any Governmental Authority involved in granting
approval of or regulating the investigation, manufacture, distribution, marketing, sale, pricing or reimbursement of the Product(s) in
that country or jurisdiction.

 

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		1.22	“U.S.” means the United States of America
and its territories and possessions.

 

		2	APPOINTMENT OF ST. NOVA AS EXCLUSIVE DISTRIBUTOR

 

		2.1	Provided St. Nova is and remains in full compliance with this Agreement and subject to meeting the Minimum Milestones set forth
                                                               in Schedule C, SUNEVA hereby grants to St. Nova and St. Nova hereby accepts, the exclusive right and license to import the
                                                               Product(s) in finished package form, market, distribute, promote, and sell the Product(s) in the Territory subject to the terms and
                                                               conditions of this Agreement. It is understood that SUNEVA or its Agent will be responsible for communications with the United
                                                               States Food and Drug Administration (FDA) and that St. Nova will be responsible for communications with the Territory Regulatory
                                                               Authority. However, St. Nova agrees to cooperate in keeping Suneva informed of all communications with Territory Regulatory
                                                               Authority, including, for all substantive communications and where otherwise agreed, paying for translations
and reverse-translations, and in the absence of such agreement, providing any requested document to or from Territory Regulatory Authority
for translation at Suneva’s expense. The Parties shall mutually cooperate with respect to all necessary regulatory filings and
communications. These licenses shall terminate or revert to nonexclusive licenses (in SUNEVA’s sole discretion) in the event that
St. Nova fails to meet the Minimum Milestones set forth on Schedule C hereof and any future addenda thereto.

 

		2.2	St. Nova shall use commercially reasonable efforts to promote, distribute and sell the Product(s) first in Hong Kong, and later, throughout
the rest of the Territory, subject to the Partnership Plan, St Nova shall use commercially reasonable efforts to maintain a reasonably
adequate level of stock of Product(s) to meet the market demand for the Product(s) and avoid Product stock-outs within and throughout
the Territory, except where such stock-out is caused by the delay in Product(s) supply by SUNEVA.

 

		2.3	All advertisements, promotional materials, packaging and anything else bearing a trademark or service mark (“Marketing Materials”)
shall identify SUNEVA as the owner and/or manufacturer thereof, and shall be subject to prior written approval by SUNEVA.

 

		2.4	St. Nova shall not, and shall not permit its customers to (i) sell Product(s) directly or indirectly outside the Territory or to any
part of the Territory other than according to the Partnership Plan; (ii) export any Product(s) out of the Territory or from any part of
the Territory other than according to the Partnership Plan; or (iii) fill any orders for Product(s) knowing that such orders are intended
for export or sale outside the Territory or to any part of the Territory other than according to the Partnership Plan. St. Nova shall
make best efforts to (i) prevent parallel imports to and exports from the Territory and to or from any part of the
Territory other than according to the Partnership Plan; (ii) prevent and report any Product(s) counterfeiting to SUNEVA and the
appropriate Governmental Authorities in the Territory; and (iii) take all commercially reasonable actions to eliminate any such
activity associated with the Product(s) in the Territory. Additionally, upon inquiry based on information that Products may
potentially be diverted, St. Nova shall provide SUNEVA reasonably sufficient information so that SUNEVA can monitor the distribution
and sale of Product(s) within the Territory to verify that St. Nova is meeting its obligation to ensure that the Product(s) are not,
directly or indirectly, being redistributed or resold outside the Territory or to any part of the Territory other than according to
the Partnership Plan. Any violation of this provision shall constitute a material breach of this Agreement.

 

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		2.5	SUNEVA shall not permit any entity other than St. Nova to sell Product(s) directly or indirectly in the Territory, and shall use best
efforts to prevent parallel imports to the Territory and shall use best efforts take to eliminate any such activity associated with the
Product(s) in the Territory.

 

		2.6	St. Nova shall not appoint any sub-distributor to distribute market, promote and/or sell the Product(s) within the Territory except
on such terms and conditions as Suneva may reasonably require in writing provided such terms and conditions are not inconsistent with
the terms and conditions of this Agreement. St. Nova shall update Suneva during each Joint Operating Committee meeting on the status of
its sub-distributorships and proposed sub-distributorships. St. Nova shall further require that all sub-distributor agreements shall,
without limitation: (i) terminate upon the expiration or earlier termination of this Agreement; (ii) be expressly subject to this Agreement
and any restrictions regarding the Product(s), SUNEVA technical and sales literature, the SUNEVA Marks and other proprietary information
stated herein; (iii) provide that the sub-distributor shall have no claims against SUNEVA or St. Nova arising from the expiration or termination
of this Agreement; and (iv) prohibit the sub-distributor from appointing further sub- distributors or agents for the sale of Product(s)
or assigning any rights or obligations under its agreement with St. Nova without SUNEVA’s prior written consent. St. Nova shall
cause sub-distributors to communicate directly with St. Nova, not SUNEVA. St. Nova agrees that it shall, at all times, be solely responsible
for the acts, deeds or omissions of any sub-distributor appointed pursuant to this Section 2.6. All distributors or sub-distributors will
be considered St. Nova’s agents.

 

		2.7	All marketing materials created by or for St. Nova that are used in conjunction with, or relate to the Product(s) must be approved
in writing by SUNEVA prior to use, the approval of which shall not be unreasonably withheld by SUNEVA. Such marketing materials shall
contain all required regulatory requirements, copyright, trademark and accreditation notices as requested by SUNEVA.

 

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		2.8	St. Nova shall:

 

		2.8.1	use commercially reasonable efforts to maximize sales of
the Product(s) in the Territory through activities such as advertising, direct mail, participation at local or regional trade shows,
and similar activities;

 

		2.8.2	use commercially reasonable efforts to develop a robust distribution network in all major markets in the Territory;

 

		2.8.3	directly and actively promote and sell the Product(s) at all times within the Territory and during the Term;

 

		2.8.4	develop an appropriate number of Product injector trainers (as mutually agreed with SUNEVA) with adequate
medical backgrounds, and who will be trained by SUNEVA-certified Product physician trainers;

 

		2.8.5	furnish SUNEVA with such quarterly reports of sales and market conditions during JOC meetings or as SUNEVA may reasonably require;

 

		2.8.6	manage and implement mutually-agreed upon clinical programs, grant studies, and market development efforts in the Territory. Such
clinical and development programs will be paid for by St. Nova but subject to review and approval by SUNEVA;

 

		2.8.7	maintain an adequate organization of well-trained and qualified personnel to effectively perform all of its duties hereunder;

 

		2.8.8	comply fully with its obligations under labor, tax, social welfare and other laws relating to its personnel;

 

		2.8.9	not knowingly hire any personnel in violation of any restrictive covenants contained in any agreement with a third party or any other
obligations owed to any third party, and St. Nova shall use commercially reasonable efforts such that none of its sub-distributors, agents,
officers, directors, employees or representatives shall do so;

 

		2.8.10	conduct its business in a professional manner which will reflect positively upon SUNEVA and its Product(s);

 

		2.8.11	at St. Nova’s expense, prepare and produce marketing materials (to be approved by Suneva per 2.8.12 below) needed to promote
the Product(s) in the Territory, provided that the need for such marketing materials shall be determined
solely by St. Nova;

 

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		2.8.12	provide SUNEVA materials and other information relating to its proposed marketing and promotional activities (accompanied by a certified
translation into English) and shall not use any such material without first obtaining the express written consent of SUNEVA management
whose consent will not be unreasonably withheld; in case no reply from Suneva within seven (7) business days of the written notice of
the materials and promotional activities is forthcoming, such materials and activities will be deemed approved by Suneva;

 

		2.8.13	cooperate with SUNEVA in sales or promotional programs prepared by SUNEVA, provided that the expense thereof to St. Nova shall be
reasonable under the circumstances;

 

		2.8.14	not, and shall cause its sub-distributors to not, make any materially misleading or untrue statements concerning the Product(s);

 

		2.8.15	not, and shall cause its sub-distributors, agents and representatives to not, sell, distribute, market, advertise or solicit purchase
orders for any other injectable dermal filler containing non-hyaluronic acid gel with PMMA;

 

		2.8.16	keep, for at least three (3) years after termination of this Agreement, records of all Product(s) sales and customers reasonably sufficient
to adequately administer a recall of any Product(s) and to fully cooperate with any decision by SUNEVA to recall, retrieve and/or replace
any Product(s);

 

		2.8.17	keep SUNEVA reasonably informed of relevant market trends, customer needs, competitive activity, economic and regulatory conditions
and St. Nova’s sales and inventory of Product(s);

 

		2.8.18	execute, and require its customers to execute, subject to Applicable Law such license, proprietary data or other agreements as SUNEVA
may reasonably require to satisfy its obligations under license and other agreements with third parties;

 

		2.8.19	promptly advise SUNEVA of any change in St. Nova’s ownership or management;

 

		2.8.20	use best efforts to control parallel imports to and exports from the Territory;

 

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		2.8.21	use best efforts to prevent and report to SUNEVA any Product(s) counterfeiting, and take commercially reasonable actions reasonably
requested by SUNEVA to eliminate any such activity associated with the Product(s) in the Territory;

 

		2.8.22	enforce the Product(s) trademark and not promote any other injectable dermal filler meeting the specification
described in Section 2.8.15 above during the Term of this Agreement;

 

		2.8.23	obtain Territory Regulatory Approval in the PRC at its own expense on or before December 31, 2018. Should St. Nova fail to obtain
regulatory approval of the Product(s) on or before such date, this Agreement will, at SUNEVA’s sole discretion, either terminate
or become non-exclusive;

 

		3	TERRITORY REGULATORY APPROVAL

 

		3.1	St. Nova will undertake to prepare and file the application(s) for Territory Regulatory Approval according to the Partnership Plan.
Wherever possible, such Territory Regulatory Approval(s) will be held by or in the name of a mutually-agreed upon escrow agent subject
to an escrow agreement and subject to the license provided by this Agreement. At the termination or expiration of this Agreement, the
escrow agent will, upon written notice by SUNEVA of such termination or expiration, transfer Territory Regulatory Approval(s) to SUNEVA
or its designee. At no time and under no circumstances will St. Nova make any claim to ownership of Territory Regulatory Approval(s) independent
of the license contained in this Agreement.

 

		3.2	SUNEVA shall not, unless so instructed by St. Nova or its Agent or required by Applicable Law, communicate with Territory Regulatory
Authority. Should Territory Regulatory Authority communicate with SUNEVA, SUNEVA will notify and provide St. Nova with copies of all such
communications.

 

		3.3	Each Party shall immediately notify the other Party of any inspections by any Governmental Authority or the Territory Regulatory Authority
or any other regulatory issues related to the Product(s). Each Party shall also have the duty to immediately notify the other Party if
it becomes aware of any concern related to the efficacy or safety of Product(s).

 

		3.4	SUNEVA shall have final approval over all labels, labeling, indications or claims regarding the Product(s) submitted to Territory
Regulatory Authority. SUNEVA shall, in its sole discretion, have final approval
for any matter that affects, or could reasonably affect, Territory Regulatory Approval for the Product(s).

 

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		4	SUNEVA’S COVENANTS

 

		4.1	Upon receipt and acceptance of orders under Section 5 hereof, SUNEVA shall make reasonable commercial efforts to manufacture the Product(s)
and to supply such Product(s) to St. Nova with one shipment (consisting of one or more cold boxes) per quarter (unless more frequent shipments
are agreed to in writing), pursuant to forecasts and purchase orders placed by St. Nova in accordance with this Agreement.

 

		4.2	According to the Partnership Plan, SUNEVA shall provide up to 25 kits (of 5 syringes per kit) of the Product(s) free of charge based
on documented need to obtain Territory Regulatory Approval(s). The parties shall work together to adjust this number up or down based
upon the approved material testing and clinical trial protocol and other regulatory requirements when fully known and mutually agree on
any compensation to Suneva that may be necessary for additional Product(s) supply.

 

		4.3	SUNEVA may, upon reasonable notice with respect to any Product(s) and without liability to St. Nova, alter the specifications for
any Product(s) as required by Applicable Law or, in SUNEVA’s sole and exclusive judgment, as needed to maintain competiveness in
Territory or any other market. SUNEVA will make such modified Product(s) containing collagen and PMMA microspheres available to St. Nova
under same terms of this Agreement. In any event, SUNEVA is and shall remain able to supply the Product(s) in current specification as
of the Effective Date of this Agreement, unless Applicable Law prohibits it from doing so.

 

		4.4	SUNEVA represents and warrants that it possesses complete distribution rights for the Product(s) in the Territory. Subject to the
terms of this Agreement, SUNEVA hereby grants exclusive distribution rights to St. Nova for the Product(s) in the Territory. SUNEVA further
represents that, after reasonable inquiry, it is aware of no legal barriers, beyond those pertaining to regulatory approval in the Territory
that would prevent St. Nova from adequately-exercising the distribution rights granted herein. Specifically, Suneva represents and warrants
that, after a reasonable inquiry, it is aware of no legal threat to the distribution of Product(s) in the Territory posed by any valid
intellectual property related to the product known as Artecoll.

 

		4.5	All Products will be shipped with no less than fifteen (15) months shelf life at the time of shipment.

 

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		5	RECEIPT AND DISTRIBUTION OF THE PRODUCT BY ST. NOVA

 

		5.1	St.
                                            Nova shall, at its sole expense, maintain, transport and store Product(s) at all times within
                                            the approved storage and transportation conditions (including, without limitation storing
                                            and transporting the Product(s) at a temperature of 2 to 8 degrees C°) as necessary to
                                            maintain Product(s) integrity.

 

		5.2	St. Nova shall maintain temperature traces for each shipment, from SUNEVA’s facility through final holding cold storage area
(prior to further distribution, if applicable). This data must remain on file and be provided to SUNEVA upon request to validate constant
Product(s) temperature compliance.

 

		5.3	St. Nova shall not change, alter, modify, rebrand, or tamper with the Product(s) or packaging in any way other than, with SUNEVA’s
prior express written consent, to repackage or translate the package container, IFU, or other packaging modification necessary to comply
with Applicable Law.

 

		6	FORECASTS, ORDERS, DELIVERY AND PURCHASE OBLIGATIONS

 

		6.1	Pursuant to Partnership Plan the following launch procedure shall apply: When SUNEVA concludes and provides notice that, in its sole
and exclusive judgment, Territory Regulatory Approval in the respective part of the Territory is likely to be received within a six (6)
month time frame, the parties shall meet and agree upon an estimated Launch Date for the Product(s). The agreed upon Launch Date shall
in no event be later than sixty (60) days from the date Territory Regulatory Approval is actually obtained. In the event the Parties are
unable to agree upon a Launch Date within thirty(30) days after SUNEVA provides the aforementioned notice, the Parties agree that the
Launch Date shall be sixty (60) days from Territory Regulatory Approval. Within ten (10) days of reaching such agreement (or failing such
agreement, within ten (10) days from the date Territory Regulatory Approval is actually obtained) St. Nova shall send to SUNEVA an initial
purchase order for such Product(s) to be purchased by St. Nova, prior to the Launch Date. Such initial purchase order shall function as
a Launch Notice.

 

		6.2	For the Territory, and as detailed in the Partnership Plan, the following forecasting and ordering procedure shall apply: No later
than six months following the agreed upon Launch Date (and every six months thereafter), St. Nova shall provide to SUNEVA a rolling 12-month
forecast of the amount of such Product(s) to be ordered for delivery during each six month period forecast. Every six months thereafter
St. Nova shall update the rolling forecast with its desired purchase amounts for the subsequent four quarters. Should St. Nova wish to
increase the original forecast amount by greater than 25%, SUNEVA shall use best efforts to satisfy this additional demand. St. Nova shall
use all reasonable efforts to make each forecast as accurate as possible.

 

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		6.3	On or before the first day of each calendar quarter following the Launch Date of the Product, St. Nova shall place written, firm,
non-cancellable purchase order(s) with SUNEVA for the quantities (consistent with 6.2 hereof) and the delivery dates (consistent with
SUNEVA’s then current lead times) of each Product(s) that it desires to purchase under this Agreement for commercial use; provided,
however, that where the purchase order adds to or is in conflict with the terms and conditions of this Agreement, this Agreement, and
not such standard terms and conditions set forth in the purchase orders, shall govern the purchase and sale of the Product(s). St. Nova
agrees to place such purchase orders at least ninety (90) days in advance of the specified delivery date, unless otherwise agreed to in
writing by the parties. Save in case of Force Majeure, SUNEVA is obliged to use best efforts to supply the Product(s) in accordance with
the purchase orders and on or prior to the designated delivery date.

 

		6.4	St. Nova shall at all times maintain the minimum purchase obligations of the Product(s) set forth on Schedule C as subsequently
amended pursuant to the Partnership Plan.

 

		6.5	Delivery terms for all Product(s) (including no-charge Product(s)) are FOB Origin, SUNEVA’s Facility (Incoterms 2000). All transportation,
storage, distribution, and maintenance costs of Product(s) (and if required by Territory Regulatory Authority, skin tests) shall be borne
by St. Nova.

 

		6.6	As detailed in Schedule C, SUNEVA will provide no-charge Product(s) during the Term to support Product(s) training and medical
education, as follows:

 

		6.6.1	Following Territory Regulatory Approval:

 

For purchase of up to $1,500,000 annually: 1 no-charge
Bellafill kit (5 syringes) per every 10 Bellafill kits (50 syringes) purchased.

 

For purchase of >$1,500,000 and up to $3,000,000 annually:
2 no-charge Bellafill kits (10 syringes) per every 10 Bellafill kits (50 syringes) purchased.

 

For purchase of >$3,000,000 annually: 3 no-charge Bellafill
kits (15 syringes) per every 10 Bellafill kits (50 syringes) purchased.

 

The primary intended use of said no-charge kits is for
training of physicians (not for resale) in the Territory, marketing and promotion, however it is understood that some free goods distributed
to physicians in the Territory may be resold and that St. Nova has discretion in this matter so long as all other terms of this Agreement
are honored. As subsequent Territory Regulatory approval(s) is/are obtained, e.g. for the PRC, Macau or Taiwan,, the same ratio of free
to purchased goods will apply so long as St. Nova exceeds the prior year’s agreed upon Minimum
Milestones.

 

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		6.6.2	If skin tests are required by Territory Regulatory Authority, SUNEVA will provide one no-charge skin test kit (5 x 0.3cc skin test
syringe) for every one Bellafill kit purchased; provided that St. Nova shall not charge any party, customer, doctor or otherwise for such
skin test kits.

 

		7	COMPLIANCE WITH LAW

 

		7.1	It shall be the responsibility of St. Nova and SUNEVA, respectively, to follow all procedures and take all actions that are necessary
or required for agreements of this type by Applicable Law.

 

		7.2	Neither party shall be obligated to carry out or perform any term of this Agreement if performance constitutes a violation of Applicable
Law. In such an event, the other terms of this Agreement shall continue as reasonably possible in the circumstance and the parties shall
use all reasonable efforts to re-negotiate and amend this Agreement so that performance of this Agreement as so amended will not involve
any such violation.

 

		8	PRODUCT COMPLAINTS

 

		8.1	Each Party shall cooperate fully with the other Party in dealing with customer complaints concerning the Product and shall take reasonable
action to resolve promptly and follow up with regard to such complaints as required by Regulatory Authority or Applicable Law.

 

		8.2	Without limiting the generality of the foregoing, St. Nova shall:

 

		8.2.1	notify SUNEVA in a timely manner as required by Regulatory Authority or Applicable Law in the Territory all such complaints that indicate
a potentially significant effect involving the safety or efficacy of the Product(s) and/or involving a patient or end user;

 

		8.2.2	provide copies to SUNEVA within a commercially reasonable time of all customer complaints received by St. Nova relating to the Product(s);
If the customer complaint is related to a patient safety concern, St. Nova is to notify SUNEVA within 48 hours of becoming aware of such
issue.

 

		8.2.3	keep and maintain records of all customer complaints received by St. Nova relating to the Product(s); and

 

		8.2.4	otherwise provide such assistance and information as SUNEVA reasonably requests to fulfill SUNEVA’s complaint handling obligations
for the Product(s).

 

		8.3	Any Product(s) complaints must be adequately investigated and addressed appropriately. However, subject to Applicable Law and Territory
Regulatory Authority, corrective action shall be taken by St. Nova only if and when SUNEVA notifies St. Nova in writing requesting that
such a corrective action plan that SUNEVA subsequently approves be implemented, and further provided that SUNEVA shall solely bear the
cost for such corrective action, except where the corrective action is mandated by Territory Regulatory Authority in which case costs
will be allocated pursuant to Section 11.4.

 

		9	ADVERSE EVENT REPORTING

 

		9.1	St. Nova shall be responsible for reporting to SUNEVA any adverse device events, malfunctions, incidents, near incidents and other
such events related to the Product(s) pursuant to the Applicable Law in the Territory.

 

		9.2	St. Nova shall provide such assistance and information as SUNEVA reasonably requests to fulfil its adverse event reporting obligations
for the Product(s), as required by Territory Regulatory Authority and Applicable Law.

 

		9.3	St. Nova shall keep and maintain records of all customer complaints received by St. Nova relating to the Product(s) as required by
Territory Regulatory Authority or Applicable Law and provide copies to SUNEVA upon request.

 

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		10	GOOD MANUFACTURING PRACTICES

 

		10.1	SUNEVA is responsible for ensuring that all Products are designed and manufactured in material compliance with cGMP, including FDA’s
Good Manufacturing Practices, which are now codified in the Quality System Regulation (“QSR”), as well as international quality
system standards, such as ISO 13485:2003 (or later version(s) thereof), as necessary.

 

		10.2	St. Nova is responsible for ensuring that it conducts any quality related activities in reasonable compliance with the requirements
of the Territory Regulatory Authority.

 

		11	PRODUCT RECALLS

 

		11.1	If St. Novain good faith determines that a recall involving the Product(s) may be warranted, St. Nova shall immediately notify SUNEVA
in writing and shall advise SUNEVA of the reasons underlying its determination that a recall or product correction may be warranted. SUNEVA
shall retain full authority and responsibility for making recall decisions and implementing such actions, unless Governmental Authority
mandates St. Nova to do so.

 

		11.2	If SUNEVA decides to conduct a recall, SUNEVA will provide written notice to St. Nova within twenty-four (24) hours of such decision,
and a summary of the reason for and implementation of such action. SUNEVA shall provide such information as St. Nova may reasonably require
to prepare any additional customer notification of such recall, which notification shall be issued by St. Nova, with SUNEVA’s approval.

 

		11.3	Any such recall by either party shall be handled in accordance with the policies and procedures maintained by both parties. SUNEVA
shall submit to St. Nova for submission to Governmental Authority any necessary reports, as required under the Applicable Law, including
21 C.F.R. Part 806, and shall be responsible for drafting any recall notifications with respect to the Product(s). St. Nova shall notify
Governmental Authority of such recall, in accordance with Applicable Law once SUNEVA has officially notified St. Nova.

 

		11.4	The Party whose actions or inaction created the circumstances necessitating the recall shall reimburse the other Party for all reasonable
out-of-pocket costs and expenses associated with conducting the recall.

 

		11.5	During the term of this Agreement, St. Nova shall maintain records of all sales of the Product(s) and customers resonably sufficient
to adequately administer a recall, market withdrawal or correction. Immediately upon termination or expiration of this Agreement, St.
Nova shall provide SUNEVA with a copy of all distribution records relating to the Product(s).

 

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		12	GOVERNMENTAL INSPECTIONS AND INQUIRIES

 

		12.1	St. Nova shall promptly, and in any event within three (3) business days after the date of receipt of notice, notify SUNEVA in writing
of, and shall provide SUNEVA with copies of, any correspondence and other documentation received or prepared by St. Nova in connection
with any of the following events to the extent necessary to meet the requirements of any Governmental or Territory Regulatory Authority,
as it relates to the Product(s):

 

		12.1.1	receipt of a regulatory letter, warning, recall notice, notice of inspection or similar communication from any Governmental or Territory
Regulatory Authority in connection with the storage, marketing, advertisement, sale and/or distribution of the Product(s); and

 

		12.1.2	any Governmental or Territory Regulatory Authority’s comments relating to the Product(s) that may require a response or action
by SUNEVA.

 

		12.2	Without limiting the generality of the foregoing, in the event that St. Nova or any Agent receives a letter or comments from any such
Governmental or Territory Regulatory Authority in connection with any of the Product(s) that requires a response or action by SUNEVA,
St. Nova shall promptly provide to SUNEVA any data or information in its possession or control required in preparing such response that
relates to storage, marketing, advertising, sale or distribution of the Product(s), and St. Nova will cooperate fully with SUNEVA in preparing
such response.

 

		12.3	In the event any facility that is used by St. Nova or any agent to store, market, advertise, distribute
or sell any Product(s) is inspected by representatives of any Governmental or Territory Regulatory Authority, St. Nova shall notify SUNEVA
promptly upon learning of such inspection and shall supply SUNEVA with copies of any correspondence that relates to such inspection. SUNEVA
may, at its election, send representatives to, and may participate in any portion of such inspection that relates to any of the Product(s).
St. Nova shall furnish to SUNEVA copies of all material information supplied to, or supplied by, such Governmental or Territory Regulatory
Authority, including observations and responses within five (5) business days after the delivery of such information by the Governmental
or Territory Regulatory Authority.

 

		12.4	St. Nova shall provide SUNEVA with a copy of any response related to such visit or inspection for SUNEVA’s review and comment
prior to submission of the response. St. Nova shall provide SUNEVA with a copy of the final response promptly after it is submitted to
the Governmental or Territory Regulatory Authority.

 

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		12.5	In the event any Governmental or Territory Regulatory Authority detains or seizes any Product(s) in the custody or control of St.
Nova or its agents, St. Nova shall promptly send retained samples of each applicable Product and duplicate reports relating to such seizure
to SUNEVA, provided that such action does not violate Applicable Law.

 

		13	AUDITS

 

		13.1	Within a reasonable time and after written notice, but no later than one- hundred and twenty (120) days’ after this Agreement
has been signed, St. Nova shall be open to SUNEVA conducting an initial audit, inspection, examination or evaluation, during normal working
hours at any time (unless an audit or inspection is than being conducted by Regulatory Authority), for the purpose of placing St. Nova
on the Approved Supplier/Distributor List.

 

		13.2	Within a reasonable time, but no later than thirty (30) days’ after prior written notice, is
                                                                                                          given by SUNEVA, the facilities that are used by St. Nova or any agent to store, market, advertise, distribute or sell any
                                                                                                          Product(s) shall be open to audit, inspection, examination and evaluation, during normal working hours at any time (unless an audit
                                                                                                          or inspection is then being conducted by Regulatory Authority), and no more than once per calendar year (unless deemed necessary by
                                                                                                          Suneva, due to a product recall, event, complaint and or other related action(s) which may require an on-site audit, inspection and
                                                                                                          or visit), by SUNEVA or its authorized representatives to the extent reasonably necessary to evaluate St. Nova’s or
                                                                                                          agent’s compliance with Applicable Law, and other requirements of this Agreement in connection with its performance under this
                                                                                                          Agreement. During such audit, inspection, examination or evaluation, St. Nova or its agent shall permit SUNEVA or its authorized
                                                                                                          representatives to inspect and audit records reasonably necessary to evaluate St. Nova’s compliance with Applicable Law, and
                                                                                                          other requirements of this Agreement in connection with its performance under this Agreement.

 

		14	PRODUCT MODIFICATIONS

 

		14.1	St. Nova shall not change, alter, modify, rebrand, or tamper with the Product(s) in any way other than to affix a SUNEVA approved
label to the package or translate the package container, and/or IFU, necessary to obtain or maintain Territory Regulatory Approval, without
prior written approval and review from SUNEVA.

 

		14.2	All translations shall be subject to review and approval by SUNEVA prior to any use by St. Nova.

 

		14.3	Any and all affixed labels and/or translations to the Product(s) packaging must be approved in advance by SUNEVA.

 

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		15	JOINT OPERATING COMMITTEE

 

		15.1	Governance and Reporting.

 

		15.1.1	The parties shall form a Joint Operating Committee (JOC) within sixty (60) days of the Effective Date to coordinate efforts, communicate
information, data and maximize the Product(s) potential in the Territory. The JOC will meet quarterly, with at least one face-to-face
meeting per year. Both companies will assign at least one senior person to the JOC with the principal representative for each company
being at least a Director level manager.

 

		15.1.2	At each JOC, SUNEVA shall update St. Nova on new products clinical results, marketing strategies and implementation outside of the
Territory, coordination, production plan updates, and manufacturing changes for the Product(s). SUNEVA will also provide guidance on ex-Territory
commercial best practices and clinical study results that would benefit the Product(s) in the Territory.

 

		15.1.3	At each JOC, St. Nova shall provide an update on sales and marketing, customer plans, programs, adoption, and financial results. St.
Nova shall also provide a yearly financial summary of Product(s) in the Territory including aggregate sales, sales by customer, and the
expense budget associated with Product(s) sales.

 

		15.1.4	Within sixty (60) days of the Effective Date and thereafter once a year no later than March 1, St. Nova shall provide the JOC a yearly
update to the Partnership Plan for the Product(s) in the Territory for review at the JOC. Such updated Partnership Plan will outline commercial,
clinical, regulatory, and other functional area goals, strategies, and implementation plans.

 

		15.1.5	Subject to the requirements of this Agreement, St. Nova shall have final decision making responsibility for any commercial decision
related to the Product(s) in the Territory other than decisions related to labeling, regulatory filings, communication, clinical development
plans, and submissions which must be mutually agreed upon by the JOC. Additionally, both parties will mutually agree on Regulatory decisions,
strategy, and regulatory agency filings for the Product(s) in the Territory.

 

		16	PRODUCT RETURNS

 

		16.1	Returns shall only be authorized due to a defect or suspected defect reasonably demonstrated to
                                                                                                          SUNEVA, and must be authorized in writing by SUNEVA with an appropriate returned goods authorization number prior to the return of
                                                                                                          any Product(s). Defective Product(s) returned must, wherever possible, be unopened and undamaged, and must be received within ninety
                                                                                                          (90) days of receipt by St. Nova for replacement or credit. Product(s) returned after ninety (90) days will not be accepted for
                                                                                                          return. No cash refunds will be issued for returns of Product(s) unless it is a recall, permanent product defect, confirmed customer
                                                                                                          complaint related to the product, etc.; credits for such returns will be applied to the account of St. Nova.

 

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		17	PRODUCT PRICE AND PAYMENT

 

		17.1	St. Nova shall pay SUNEVA a fixed price for the Product(s) as set forth in Schedule C.

 

		17.2	[This Section Intentionally Omitted]

 

		17.3	All payments shall be in United States Dollars exclusive of any withholding, VAT or other taxes and to clarify and without limitation,
St. Nova shall pay all taxes, VAT, duties, other governmental assessments, insurance, shipping and all similar charges however labeled.
In no event shall St. Nova be responsible for any taxes based on SUNEVA’s net income nor shall SUNEVA be responsible for any taxes
based on St. Nova’s income.

 

		17.4	St. Nova shall assume full responsibility for all its own costs and expenses incurred in carrying out its obligations under this Agreement
unless otherwise provided herein, including but not limited to all rents, salaries, commissions, advertising, translations of documents
and materials, demonstration, travel and accommodation for the employees, agents, representatives or other personnel of St. Nova.

 

		17.5	Prices do not include, and St. Nova shall be responsible for, all excise, sales, use, value added and other taxes, including any goods
and services tax payable in the Territory and excluding only any U.S. tax on the net income of SUNEVA.

 

		18	INTELLECTUAL PROPERTY RIGHT, TRADEMARKS, CONFIDENTIALITY, AND PROCESS TRADE SECRETS

 

		18.1	St. Nova acknowledges and agrees that SUNEVA owns the Technical Information, and all industrial and intellectual property rights of
any kind or relating to the Technical Information, including the right to patents, registered or other designs, copyright, trademarks
or trade names, and any other confidential information related to the Product. Nothing contained in this Agreement shall be effective
to give St. Nova any rights of ownership in or to the Technical Information, or any intellectual property
owned by SUNEVA, whatsoever.

 

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		18.2	SUNEVA has established or is in the process of establishing a global international brand name and trademark for the Product(s) (“Product
Brand”). Such trademark and brand will be used by St. Nova at a mutually agreeable time in the Territory unless there is a regulatory
restriction or prevention of such brand name. SUNEVA will work in good faith with St. Nova to insure such brand name and Trademark is
mutually acceptable but final decision with international brand name and Product trademark shall be SUNEVA’s.

 

		18.3	During the Term of this Agreement, SUNEVA grants to St. Nova an exclusive license for use only in
                                                                                                          the Territory to the trademarks and any domain name(s) listed in Schedule B and the Product Brand (“SUNEVA’s
                                                                                                          Marks”) for the sole and exclusive purpose of marketing and selling Product(s) in the Territory. SUNEVA may inspect and
                                                                                                          monitor St. Nova’s use of the SUNEVA Marks. St. Nova is not granted any right, title or interest in the SUNEVA Marks other
                                                                                                          than the foregoing limited license, and St. Nova shall not use any SUNEVA Marks as part of St. Nova’s business, entity,
                                                                                                          corporate or trade name or permit any third party to do so. Any and all goodwill generated by St. Nova’s use of the SUNEVA
                                                                                                          Marks shall inure solely to the benefit of SUNEVA.

 

		18.4	Unless otherwise agreed by SUNEVA in writing, St. Nova shall not identify Product(s) by any designation other than the Product Brand.

 

		18.5	St. Nova shall use SUNEVA Marks solely with respect to Product(s) purchased from SUNEVA as provided in this Agreement, and only in
accordance with the standards of quality established or approved by SUNEVA or its designee.

 

		18.6	SUNEVA is, and at all times shall remain the owner of SUNEVA’s Marks. St. Nova will not at any time do, cause to be done, and
will use reasonable commercial efforts such that none of its employees, agents, contractors and subcontractors, commit any act inconsistent
with, contesting or in any way impairing, or tending to impair, such ownership. All use of SUNEVA’s Marks, and goodwill accruing
therein, shall inure to the benefit of and be on behalf of SUNEVA or its Affiliates. Nothing in this Agreement provides St. Nova any right,
title or interest in the Trademarks other than the right to use the Trademarks solely within the Territory in accordance with this Agreement.
In the event that St. Nova acquires any rights in the Trademarks in connection with St. Nova activities pursuant to this Agreement, St.
Nova shall assign, and hereby does assign, to SUNEVA or its Affiliates all such rights, including any related goodwill.

 

		18.7	St. Nova shall not operate an Internet site that references any of the Products or the SUNEVA Marks (“St. Nova Web Site”)
without the prior written consent of SUNEVA. In consideration of SUNEVA allowing
St. Nova to reference the Product(s) or use the SUNEVA Marks in St. Nova’s Web Site, SUNEVA may provide and St. Nova shall post
on the St. Nova Web Site, mandatory content, including but not limited to privacy policies, terms of use, copyright and trademark notices,
and graphics and trademark policies. Subject to SUNEVA’s prior written consent, St. Nova shall prominently provide on the Product
home page of the St. Nova Web Site a link to SUNEVA’s Internet site in location, style, size and manner specified by SUNEVA. St.
Nova shall be limited to using SUNEVA Marks in connection with the Internet as follows:

 

		18.7.1	The use must be in compliance with Applicable Law regarding advertising of regulated products and/or pharmaceuticals on the Internet
and must be approved by SUNEVA prior to such use;

 

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		18.7.2	No license is granted to use or obtain rights to any “.com” generic code domain, or any
other such top-level domain, for any Trademark. All domain names containing the Trademark will be registered and maintained by and in
the name of SUNEVA or its designee;

 

		18.7.3	Appropriate disclaimers must be included in any website to the effect that it is intended for residents within the Territory only;
and

 

		18.7.4	In using any of the Trademarks on the Internet, St. Nova will not have and will not represent in any way that it has any title or
right to the ownership or registration or their use, except as provided in this Agreement. St. Nova will at all times indicate that each
of the Trademarks is a trademark of SUNEVA and is used under license.

 

		18.7.5	St. Nova may not use any SUNEVA Marks in connection with any domain name, directory, address, locator, linking, co-branding, metatag,
or with any other Internet search strategy.

 

		18.8	St. Nova shall provide prompt notice to SUNEVA of any infringement or potential infringement of the SUNEVA Marks by a third party
and of any challenge to its use of the SUNEVA Marks by a third party. SUNEVA shall have the sole right, but not the obligation, to enforce
any such Trademarks against such Third Party infringer, in its discretion, and to settle or compromise any such possible infringement
by taking such action as SUNEVA may determine in its sole and absolute discretion using counsel of their choice. St. Nova shall cooperate
fully with SUNEVA in any legal action taken by SUNEVA against such third parties, provided that SUNEVA shall pay all expenses of such
action and all damages which may be awarded or agreed upon in settlement of such action shall accrue to SUNEVA.

 

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		18.9	St. Nova agrees not to use or contest, during or after the Term of this Agreement, any SUNEVA Marks anywhere in the world (or any
name, mark or designation similar thereto).

 

		18.10	St. Nova shall not remove or alter any SUNEVA trade names, trademarks, copyright notices, serial numbers, labels, tags or other identifying
marks, symbols or legends affixed to any Product(s), documentation or containers or packages.

 

		18.11	St. Nova shall not adopt, use or register any words, phrases or symbols that are identical to or confusingly similar to any of SUNEVA’s
Marks, or oppose any such registration by SUNEVA. Upon termination of this Agreement, St. Nova shall immediately cease any use of the
SUNEVA Marks in any manner other than in connection with the disposal of inventory remaining at such time. To effectuate the purposes
of this provision, St. Nova shall sign and deliver any documents and perform all further acts as may be reasonably requested by SUNEVA.

 

		19	RELATIONSHIP OF SUNEVA AND ST. NOVA

 

		19.1	Notwithstanding anything set forth herein to the contrary, the relationship between SUNEVA and St. Nova that is created by this Agreement
shall be that of independent contractors, vendor and purchaser, and not that of a partnership, franchise, employment, principal or agent,
or joint or co- ventures. In the performance of this Agreement, St. Nova shall have no authority to assume or create any obligation or
responsibility, either expressed or implied, on behalf of or in the name of SUNEVA, or to bind SUNEVA or its Affiliates in any manner
whatsoever and SUNEVA shall have no authority to assume or create any obligation or responsibility, either express or implied, on behalf
of or in the name of St. Nova or to bind St. Nova or its Affiliates in any manner whatsoever. Each party shall indemnify the other party
for any claim asserted by any third party that the acts of such party or any of its Affiliates created any obligation or responsibility
of the other party other than as expressly set forth in this Agreement.

 

		19.2	If this Agreement is terminated for any reason, neither party shall thereafter use, or permit anyone else under its control to use,
the other’s name in the promotion of its business or the offer for sale of any goods and neither party shall package or label any goods
in a manner that the other party hereto might reasonably consider to be imitative of any goods sold by such party, provided that each
party shall have the right to nominative use of the other party’s name in a factually accurate manner.

 

		20	WARRANTIES LIMITATIONS OF LIABILITY

 

		20.1	St. Nova hereby represents and warrants to SUNEVA that:

 

		(a)	it has the corporate authority to enter into this Agreement and to perform its obligations hereunder;

 

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		(b)	no approval, action or authorization by any Governmental Authority is required for St. Nova’s execution
and performance hereof (except for Territory Regulatory Approval) which has not already been obtained;

 

		(c)	following reasonable inquiry, it is not aware of any legal, contractual or other restriction, limitation or condition that might affect
adversely its ability to perform hereunder.

 

		20.2	Subject to Section 20.3 below, SUNEVA hereby represents and warrants to St. Nova that:

 

		(a)	it has the corporate authority to enter into this Agreement and to perform its obligations hereunder;

 

		(b)	no approval, action or authorization by any Governmental Authority is required for SUNEVA’s execution
and performance hereof which has not already been obtained;

 

		(c)	following reasonable inquiry, it is not aware of any legal, contractual or other restriction, limitation or condition that might affect
adversely its ability to perform hereunder.

 

		20.3	Disclaimer of Warranties. SUBJECT TO SECTION 10.1, SUNEVA GRANTS NO WARRANTIES, EITHER EXPRESS OR IMPLIED, WITH REGARD TO THE PRODUCTS
OR THE SUNEVA MARKS, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE EXCEPT THAT THE PRODUCTS
ARE FREE FROM DEFECTS IN MATERIAL AND WORKMANSHIP.

 

		20.4	SUBJECT TO SECTION 21 INDEMNIFICATION, ST. NOVA AGREES THAT SUNEVA SHALL NOT BE LIABLE TO ST. NOVA OR ANY OF ITS AFFILIATES OR SUBDISTRIBUTORS
OR ANY THIRD PARTY FOR ANY LOSS OR DAMAGE INCLUDING, WITHOUT LIMITATION, ANY CAUSED BY THE PRODUCTS UNDER THIS AGREEMENT OR ANY OTHER
PERFORMANCE UNDER THIS AGREEMENT, EXCEPT IN THE CASE WHERE SUCH LOSS OR DAMAGE COMES FROM DEFECTS IN THE PRODUCTS.

 

		20.5	NEITHER PARTY SHALL HAVE ANY LIABILITY OF ANY KIND TO THE OTHER PARTY FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL LOSSES
OR DAMAGES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH POTENTIAL LOSS OR DAMAGE BY THE OTHER PARTY OR ANY THIRD PARTY.

 

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		20.6	IN NO EVENT SHALL SUNEVA BE LIABLE FOR ANY DAMAGES IN EXCESS OF THE AGGREGATE AMOUNTS ACTUALLY PAID BY ST. NOVA, TO SUNEVA UNDER THIS
AGREEMENT DURING THE PRECEDING SIX (6) MONTH PERIOD BEGINNING WITH ST NOVA’S MOST RECENT ORDER UNLESS DUE TO CONFIRMED DEFECTS IN
THE PRODUCT. THIS LIMITATION SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED REMEDY PROVIDED FOR HEREIN.

 

		21	INDEMNIFICATION

 

		21.1	St. Nova agrees to indemnify SUNEVA against and hold SUNEVA and its employees, officers, directors and Affiliates harmless from any
and all loss (except consequential loss, such as, for example, loss of business or of profits), liability, damage, claim, cost and expense
(including, without limitation, reasonable attorney’s fees and liabilities for personal injury suffered by any person) arising from or
in connection with any:

 

		(a)	breaches by St. Nova of representations, warranties, conditions, covenants or agreements contained in this Agreement;

 

		(b)	any other misrepresentation or breach of this Agreement by St. Nova or its agent;

 

		(c)	any claim, express, implied or statutory made by St. Nova, its agents, Affiliates or its sub-distributors, (except to the extent that
such claim has been approved by Territory Regulatory Authority and authorized in writing by SUNEVA) as to the efficacy or safety of the
Product or the use to be made by any purchaser of the Product(s)(except in the case where such loss or damage comes from defects in the
Product(s));

 

		(d)	St. Nova’s or any agent’s negligent acts or omissions or willful misconduct in the use, import, marketing, promotion,
advertising, distribution and sale of the Products, including but not limited to St. Nova’s or agent’s promotional or advertising
materials for the Product(s);

 

		(e)	any statements, claims, representations or warranties made by St. Nova or its agents relating to the Product(s), other than as authorized
in writing by SUNEVA:

 

		(f)	any infringement or claim thereof of any patent, copyright, trademark, service mark, trade name, trade secrets, domain names, or
                                                             any other property right of a third party arising from the use by St. Nova or any agent of (i) any symbol, insignia, name or
                                                             identifying characteristic other than the SUNEVA’s Marks, (ii) any combination of any SUNEVA Mark with any materials not
                                                             provided or approved by SUNEVA, (iii) any modification to the Product(s)
not made by SUNEVA, or (iv) any use of the Products not authorized or certified by SUNEVA
or by the SUNEVA technical and sales literature and materials;

 

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		(g)	any intentional or negligent violations by St. Nova or any agent of any Applicable Law; and

 

		(h)	any contractual relations between St. Nova or any agent and a third party.

 

		21.2	Subject to the limitations contained in Section 20.6 above, SUNEVA agrees to indemnify St. Nova against and hold St. Nova and its
employees, officers, directors and Affiliates harmless from any and all loss (except consequential loss, such as, for example, loss of
business or of profits unless such amount is included in amounts paid or payable by St. Nova to third parties), liability, damage, claim,
cost and expenses (including, without limitation, reasonable attorney’s fees and liabilities for personal injury suffered by any
person) arising from or in connection with any:

 

		(a)	breaches by SUNEVA of representations, warranties, conditions, covenants or agreements contained in this Agreement;

 

		(b)	any other misrepresentation or breach of this Agreement by SUNEVA or its agent;

 

		(c)	any claim, express, implied or statutory, made by a third party for bodily injury, personal injury, death and property damage caused
by defects in the Product(s) and defective Product(s) information submitted by SUNEVA or its agent;

 

		(d)	any negligent acts or omissions or willful misconduct by SUNEVA or its agent in connection with the manufacturing and exporting of
the Product(s) including but not limited to any technical and sales literature and materials provided by SUNEVA or its agent;

 

		(e)	any statements, claims, representations or warranties made by SUNEVA or its agent relating to the Product(s);

 

		(f)	any intentional or negligent violations by SUNEVA or its agent of any Applicable Law;

 

		(g)	any contractual relations between SUNEVA or any agent and a third party; and

 

		(h)	any claim for infringement or alleged infringement of third party intellectual property by the Technical Information, any Product
trademark, the Product Brand or the Product(s) or the sale or use thereof.

 

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		21.3	If St. Nova or any of its Affiliates or SUNEVA or any of its Affiliates (in each case an “Indemnified Party”) receives
any written claim which it believes is the subject of indemnity hereunder by SUNEVA or St. Nova, as the case may be, (in each case as
“Indemnifying Party”), the Indemnified Party shall, as soon as reasonably practicable after forming such belief, give notice
thereof to the Indemnifying Party, including full particulars of such claim to the extent known to the Indemnified Party; provided, that
the failure to give timely notice to the Indemnifying Party as contemplated hereby shall not release the Indemnifying Party from any liability
to the Indemnified party. The Indemnifying Party shall have the right, by prompt notice to the Indemnified Party, to assume the defense
of such claim with counsel reasonably satisfactory to the Indemnified Party, and at the cost of the Indemnifying Party. If the Indemnifying
Party does not so assume the defense of such claim or, having done so, does not diligently pursue such defense, the Indemnified Party
may assume such defense, with counsel of its choice, but for the account of the Indemnifying Party. If the Indemnifying Party so assumes
such defense, the Indemnified Party may participate therein through counsel of its choice, but the cost of such counsel shall be for the
account of the Indemnified Party.

 

		21.4	The party not assuming the defense of any such claim shall render all reasonable assistance to the party assuming such defense, and
all out-of-pocket costs of such assistance shall be for the account of the Indemnifying Party.

 

		21.5	No such claims shall be settled other than by the party defending the same, and then only with the consent of the other party, which
shall not be unreasonably withheld; provided, that the Indemnified Party shall have no obligation to consent to any settlement of any
such claim which imposes on the Indemnified Party any liability or obligation which cannot be assumed and performed in full by the Indemnifying
party.

 

		21.6	Each of the parties agrees that it will not disclose or use any Confidential Information of the other party that it may acquire at
any time during the term of this Agreement without the prior written consent of such party and that it shall use all reasonable efforts
to prevent unauthorized publication or disclosure by any person of such Confidential Information including requiring its employees, consultants,
sub-distributors or agents to enter into similar confidentiality agreements in relation to such Confidential Information. St. Nova also
acknowledges and agrees that the Product is made in accordance with highly proprietary trade secrets of SUNEVA and that it shall not disclose
such trade secrets and shall prevent disclosure thereof and further it shall not and shall not permit other to discover by reverse engineering
or otherwise any of such trade secrets. St. Nova will not disclose any information regarding the production, engineering, GMP or GLP standards,
to any other party without the express written consent of SUNEVA.

 

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		21.7	The obligations undertaken by each party under this Section shall continue in force for a period of five (5) years following the termination
or expiration of this Agreement except with respect to SUNEVA trade secrets for which the obligations hereunder shall not expire and shall
continue after the termination or expiration of this Agreement regardless of the cause.

 

		21.8	As used in this Agreement, the term “Confidential Information” shall mean all information of disclosed to or observed
by or discovered by both parties, including without limitation customer lists, information that is embodied in the Product(s), or any
information regardless of the form in which it is disclosed that relates to a party’s markets, customers, products, patents, inventions,
procedures, manufacturing, methods, designs, strategies, plans, assets, liabilities, prices, costs, revenues, profits, organization, employees,
agents, resellers or business in general. The parties expressly agree that due to the substantially discounted pricing terms to St.
Nova, it is of the essence that St. Nova not disclose the pricing terms in Schedule C to any third-party. It is further agreed
that any breach of this Section 21 shall be a material breach and cause for termination under Section 22.3.

 

		21.9	The obligations contained in this Section 21 do not apply to any information:

 

		(a)	which was at the time of receipt by a party in the public domain through no fault or act of the receiving party or generally known
in the pharmaceutical manufacturing industry otherwise than by breach of a party’s duty of confidentiality;

 

		(b)	which a party can establish to have been known to it at the time of receipt from the other party and not to have been acquired directly
or indirectly from the other party;

 

		(c)	which was independently developed by the receiving party without the use of or reliance on Confidential Information of the other party;

 

		(d)	which was provided to the receiving party by a third party under no duty of confidentiality; and

 

		(e)	which is required to be disclosed by law but only for the purpose of providing it to such governmental agencies, provided, however,
prompt prior notice thereof shall be given to the disclosing party and disclosure shall be limited to the maximum extent possible.

 

		21.10	If any dispute arises with respect to the unauthorized use of Confidential Information, SUNEVA’s Marks or other intellectual
property of SUNEVA by St. Nova, or with respect to acts or omissions of St. Nova relating to the Products that negatively impact the reputation
of SUNEVA or the Product(s) or the safety of the public, the aggrieved party may seek any available remedy at law or equity from a court
of competent jurisdiction, in addition to its right to arbitration.

 

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		21.11	Each party agrees to keep confidential, and not to disclose to any third parties, the contents of this agreement, except that such
disclosures can be made by a party (i) in confidence to its affiliates, bankers, lawyers, existing investors, potential investors as part
of due diligence, accountants and other professional advisors, (ii) in connection with the enforcement of its rights under this Agreement,
or (iii) as may be required by law. The existence of this agreement is not confidential.

 

		22	TERM AND TERMINATION

 

		22.1	This Agreement shall be for an initial term commencing as of the Effective Date of this Agreement and continuing until the 10th anniversary
of the Effective Date. The Parties may terminate the Agreement for cause as defined in Section 22.3 below.

 

		22.2	After the initial term, this Agreement shall automatically be extended for subsequent two-year renewal terms unless terminated by
either party’s providing Notice to the other no less than six months before the end of the initial or any renewal term..

 

		22.3	This Agreement may be terminated by notice in writing by either party for cause as specified in this Section 22.3 below:

 

		22.3.1	by either party if the other party shall default in the performance of any of its other obligations under this Agreement and such
default shall continue for a period of not less than thirty (30) days after written notice specifying such default shall have been given;
provided, however, that if such default is not capable of being cured within such thirty (30) day period but the party in default initiates
and diligently continues good faith efforts to cure such default, such thirty (30) day period shall be extended to a maximum of ninety
(90) days; provided, further, however, no such cure period shall apply if St. Nova breaches any of the provisions of this Section 22;

 

		22.3.2	by SUNEVA upon a change in the beneficial ownership of: (i) more than 50% of the voting stock of either party; or (ii) all or a majority
(determined by value or most recent year’s annual revenue) of the assets of either party; in favor of any third party (not to include
any affiliate of either party).

 

		22.3.3	by SUNEVA if in any year, St. Nova fails to meet or “buy up” the Minimum Milestones (pay to SUNEVA the difference between
the actual purchases and the agreed-upon Minimum Milestones).

 

		22.3.4	by SUNEVA upon a violation of the confidentiality provisions at Section 18 or Section 21.8.

 

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		22.3.5	by SUNEVA if, in its sole discretion, there is any written and legitimate evidence of St. Nova’s or any subdistributor’s
involvement of parallel importing or counterfeiting whether direct or indirect without action by St. Nova to stop such practice.

 

		22.3.6	[This section intentionally left blank].

 

		22.3.7	by either party;

 

		(a)	if the other Party makes a voluntary petition in bankruptcy, insolvency or similar petition;

 

		(b)	upon an involuntary petition in bankruptcy, insolvency or similar petition is made against the other Party;

 

		(c)	if the other Party becomes insolvent or makes a general assignment for the benefit of creditors, suffers or permits an appointment
of a receiver for its business or assets or is liquidated;

 

		(d)	if the enactment or adoption of any Applicable Law makes it illegal, impossible or impracticable to export, import, market, sell and
distribute the Product(s) to or in the Territory as contemplated in this Agreement, then upon notice provided to the other Party that
specifies the Applicable law and details the reasons why such Applicable Law prevents performance, the prevented-party shall have 90-day
period to provide such performance, after which if such asserted prevention by Applicable Law is not addressed satisfactorily to allow
for performance, either party may terminate this agreement, and neither party shall be responsible for any ensuing damages resulting from
or arising from any such prevented performance.

 

		22.4	Promptly but no later than, thirty (30) days after Termination, St. Nova shall transfer all Territory Product information, data,
                                                                   customer lists, along with a summary of all active commercial, regulatory, and clinical efforts to SUNEVA or its designee. Under no
                                                                   circumstances, however, will Suneva directly or indirectly contact any current or former Territory customers for a period of six (6) months unless required to do so as part of a recall
or as otherwise required by Applicable Law.

 

		22.5	Upon termination or expiration of this Agreement, regardless of the cause: (a) all of St.
                                                                                                          Nova’s rights granted hereunder shall immediately cease and St. Nova shall immediately cease and desist from any further use
                                                                                                          of Technical Information, SUNEVA’s Marks, or any proprietary information of SUNEVA and immediately cease marketing, promoting
                                                                                                          or otherwise using the Product(s); (b) St. Nova shall return to SUNEVA or, at SUNEVA’s direction, destroy any and all language
                                                                                                          translations of sales and technical literature and materials in St. Nova’s (and its agents) possession or control; (c) St.
                                                                                                          Nova may continue to distribute and sell any Product(s) in its inventory for a period of six(6) months after the date of termination
                                                                                                          or expiration of this Agreement in such a manner as will not interfere with SUNEVA’s goodwill; (d) St. Nova shall immediately
                                                                                                          return to SUNEVA all other SUNEVA property, including, but not limited to, all original documents and copies which contain Technical
                                                                                                          Information or SUNEVA’s proprietary information; and (e) St. Nova shall immediately remove from its (and its agent’s)
                                                                                                          facilities and other premises all signs, billboards and other similar items bearing any of the SUNEVA Marks or identifying St.
                                                                                                          Nova(or its agents) as an authorized distributor of SUNEVA or the Product(s). Under no circumstances shall SUNEVA be liable with
                                                                                                          respect to orders received by SUNEVA after the termination or expiration of this Agreement.

 

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		22.6	The terms and provisions contained in this Agreement that by their sense and context are intended to survive the performance thereof
by the parties hereto shall so survive the completion of performance and termination of this Agreement, including, without limitation,
provision for indemnification and the making of any and all payments due hereunder and particularly the provisions of Sections 7, 8, 9,
11, 12, 18, 19, 21, 22, 30, 32, and 33 shall survive the expiration or the termination of this Agreement by either Party for any reason,

 

		23	FORCE MAJEURE

 

		23.1	Neither party shall be liable or be in breach of any provision of this Agreement for any failure or delay on its part to perform any
obligation where such failure or delay has been occasioned by any act of God, war, riot, fire, explosion, flood, government decree, government
order, required to comply with applicable law, sabotage, unavailability of fuel, labor, containers or transportation facilities, accidents
of navigation or breakdown or damage of vessels or other conveyances for air land or sea, other impediments or hindrances to transportation,
government intervention government decree government order, required to comply with applicable law, strikes or other labor disturbances
or any other cause beyond the control of the parties, including, without limitation, acts or threats of violence by governmental or non-governmental
organizations including so called “terrorist” acts (“Force Majeure Event(s)”). During the period that the performance
by one of the parties of its obligations under this Agreement has been suspended by reason of a Force Majeure Event(s), the other party
may likewise suspend the performance of all or part of its obligations hereunder, except for the obligation to pay any amounts due and
owing hereunder, to the extent that such suspension is commercially reasonable.

 

		24	INSURANCE

 

		24.1	SUNEVA and St. Nova each shall maintain commercially reasonable product liability insurance in an amount sufficient to cover product
liability claims against it, respectively, as manufacturer of the Products and distributor of the Product(s) and to provide proof of same
upon request

 

		25	NOTICES

 

		25.1	Notices provided under this Agreement to be given or served by either party on the other shall be given in writing and served personally
or by any express mail service providing proof of delivery (e.g. Federal Express, DHL) to the following respective addresses or to such
other addresses as the parties may hereafter advise each other in writing. It being agreed and understood by the parties that any such
notice shall be deemed given and served a date three (3) days after the date of express mail or mail by courier.
The parties also agree to provide a copy of any such communications to their respective Chief Executive Officers via e-mail. For avoidance
of doubt, e-mail alone shall not constitute Notice under this Agreement.

 

		To:	SUNEVA

 

SUNEVA MEDICAL, INC.

5870 Pacific Center Boulevard

San Diego, CA 92121

Attention: Chief Executive Officer

 

		To:	St. Nova

 

290 Zhongshan North Rd

Xiacheng Dist., Hangzhou

Zhejiang,
China 310000

Attention: St. Nova, CEO

 

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		26	EXECUTION OF ALL NECESSARY ADDITIONAL DOCUMENTS

 

Each party agrees that it will forthwith upon the request
of the other party execute and deliver all such instruments and agreements and will take all such other actions as the other party may
reasonably request from time to time in order to effectuate the provision and purposes of this Agreement.

 

		27	WAIVER

 

The failure of either of the parties to insist upon a strict
performance of any other terms and provisions therein shall not be deemed a waiver of any subsequent breach of default in the terms or
provisions of this Agreement.

 

		28	ASSIGNMENT

 

		28.1	Due to the exclusive nature of this Agreement St. Nova shall not assign this Agreement or any right or interest under this Agreement,
nor delegate any obligation to be performed under this Agreement, without the prior written consent of Suneva, which shall not be unreasonably
withheld or delayed, and written acceptance of such assignment in written form approved by such party. The exception to the above in which
either party may assign this agreement without the other party’s consent is only as part of a substantive change in control of the
capital structure or business of the assigning party by way of merger, sale of stock or assets, reorganization, conversion, restructuring
or otherwise.

 

		28.2	In the event of an assignment by a party hereunder in accordance with the foregoing, the assigning party shall not be released from
its obligations hereunder and shall guarantee the full performance by such assignee of such obligations. Any attempted assignment of or
delegation by a party in contravention of this provision shall be void and ineffective and shall be deemed to be a material breach hereof.

 

		28.3	Nothwithstanding any of the foregoing, SUNEVA may assign this Agreement or any obligations or rights hereunder without the prior written
consent of St. Nova. Moreover, SUNEVA agrees that in the event of any such assignment, this Agreement will remain binding on the assignee
under the terms then in effect.

 

		29	ENTIRE AGREEMENT - AMENDMENTS

 

This Agreement constitutes the entire agreement between
the Parties concerning the subject matter hereof, and supersedes and replaces all prior or contemporaneous understandings or agreements,
written or oral, regarding such subject matter. No amendment to or modification of this Agreement, or any waiver of any term or condition of this Agreement will be binding
unless in writing and signed by a duly authorized representative of both Parties.

 

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		30	GOVERNING LAW; VENUE; LANGUAGE

 

		30.1	This Agreement has been made, executed and delivered in the State of California, United States of America, in which state the offices
of SUNEVA are located. Accordingly, the Parties invoke the laws of California regarding the protection of their rights and enforcement
of their obligations hereunder and they mutually stipulate and agree that this Agreement is in all respects (including, but not limited
to, all matters of interpretation, validity, performance and the consequences of breach) to be exclusively construed, governed and enforced
in accordance with the internal laws (excluding all conflict of laws rules) of California and any applicable federal laws of the United
States of America, as from time to time amended and in effect. The Parties agree that the United Nations Convention on Contracts for the
International Sale of Goods shall not apply in any respect to this Agreement or the Parties.

 

		30.2	Language. The official language of this Agreement is English. All contract interpretations, notices, and dispute resolutions shall
be in English. Any amendments to this Agreement shall be in English. Translations of any of these documents shall not be construed as
official or original versions of the documents, or otherwise referred to in the interpretation or construction of the intentions of the
Parties hereto.

 

		31	TAXES

 

Any taxes, duties, fees, charges, VAT, assessments or withholding
of any nature levied by any governmental authority in connection with Territory Regulatory Approval, license fees or importation, marketing,
distribution or sale of the Product in the Territory, whether levied against or SUNEVA, shall be solely the responsibility of and paid
for by except for any U.S. tax on the net income of SUNEVA.

 

		32	SEVERABILITY

 

If any term or provision of this Agreement shall be held
invalid or unenforceable, the remaining terms hereof shall not be affected, but shall be valid and enforced to the fullest extent permitted
by law.

 

		33	ARBITRATION

 

		33.1	Except with respect to disputes involving SUNEVA’s rights in and/or breaches of SUNEVA’s Confidential Information
                                                                   and/or intellectual property rights and as provided in Section 18 [Confidentiality Section] above, for which the exclusive
                                                                   jurisdiction and venue is the state and federal courts of San Diego, California as specified by Section 33.3 below, any dispute,
                                                                   claim or controversy which shall arise out of or in relation to this
Agreement, or the breach thereof, shall be finally settled by binding arbitration before the International Chamber of Commerce in Zurich,
Switzerland, according to the ICC Rules of Arbitration in effect at the time of arbitration and applying the substantive law of California/the
United States without regard to conflicts of law principles. The prevailing party shall be entitled to its reasonable attorneys’
fees and costs

 

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		33.2	Notwithstanding the foregoing or the then-current specified Commercial Arbitration Rules, the following shall apply with respect to
the arbitration proceeding: (i) the existence, subject, evidence, proceedings, and ruling resulting from the arbitration proceedings shall
be deemed confidential information, and shall not be disclosed by either Party, their representatives, or the arbitrator (except: (a)
to the professional advisers of SUNEVA and St. Nova; (b) in connection with a public offering of securities by SUNEVA or St. Nova; (c)
as ordered by any court of competent jurisdiction; or (d) as required to comply with any applicable governmental statute or regulation)
and (ii) the arbitrator shall be required to prepare written findings of fact. Notwithstanding the foregoing, either Party may apply to
the court(s) listed below at 33.3 for a temporary restraining order, preliminary injunction or other equitable relief, as necessary, without
breach of this arbitration agreement and without abridgement of the powers of the arbitrator.

 

		33.3	For any disputes not subject to Sections 33.1 and 33.2 above, each of the parties hereto irrevocably submits to the exclusive
                                                                jurisdiction of the courts of the State of California located in the County of San Diego and the United States District Court for
                                                                the Southern District of California for the purpose of any suit, action, proceeding or judgment relating to or arising out of this
                                                                Agreement and the transactions contemplated hereby. Service of process in connection with any such suit, action or proceeding may be
                                                                served on each party hereto anywhere in the world by the same methods as are specified for the giving of notices under this
                                                                Agreement. Each of the parties hereto (i) irrevocably consents to the
jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court and (ii) irrevocably
waives, and agrees not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim
that it is not subject personally to the jurisdiction of the above named court, that its property is exempt or immune from
attachment or execution (except as protected by applicable law), that the suit, action or proceeding is brought in an inconvenient
forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be
enforced in or by such court, and hereby waives and agrees not to seek any review by any court of any other jurisdiction which may
be called upon to grant an enforcement of the judgment of any such court. Each of the parties hereto agrees that its, his or her
submission to jurisdiction and its, his or her consent to service of process by mail is made for the express benefit of the other
parties hereto. Final judgment against any party hereto in any such action, suit or proceeding may be enforced in other
jurisdictions by suit, action or proceeding on the judgment, or in any other manner
provided by or pursuant to the laws of such other jurisdiction.

 

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		34	GENERAL PROVISIONS

 

		34.1	Execution. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original hereunder. Each
Party agrees to be bound by its own facsimile or telecopy signature, and accepts the facsimile or telecopy signature of the other Party
hereto.

 

		34.2	Rule of Construction. Both parties have been represented by counsel in the negotiation and drafting of this Agreement, therefore,
no rule of construction requiring interpretation against the draftsman hereof shall apply in the interpretation of this Agreement.

 

		34.3	Cooperation. Both parties agree to cooperate with each other and to execute any and all further and necessary documents as may be
reasonably requested by any party hereto in order to implement and carry out the purpose and intent of this Agreement.

 

		34.4	Partial Invalidity. If any term or provision of this Agreement shall be found to be illegal or unenforceable, then notwithstanding
such illegality or unenforceability, this Agreement shall remain in full force and effect and such terms or provision shall be deemed
to be deleted.

 

		34.5	No-Waiver. No term of provision of this Agreement shall be deemed waived and no breach or default shall be deemed waived and no breach
or default shall be deemed excused unless such waiver or consent shall be in writing and signed by the party claimed to have waived or
consented. No consent by any party to, or waiver of, a breach or default by the other, whether express or implied, shall constitute a
consent to, waiver of or excuse for any different or subsequent breach or default.

 

		34.6	Headings. Descriptive headings in this Agreement ware for convenience only and shall not affect the construction of this Agreement.

 

		35	ACKNOWLEDGEMENT, REPRESENTATIONS AND COVENANTS OF ST. NOVA

 

		35.1	St. Nova hereby agrees as follows:

 

		(a)	St. Nova will be properly capitalized at all times during the Term.

 

		(b)	St. Nova agrees that in connection with this Agreement they will have access to important confidential business and technical information
of Suneva and therefore St. Nova shall, and shall require its employees, agents, officers, directors, advisors to comply with the following
covenants:

 

		i.	they shall not and they shall not permit any company they are associated with or affiliated with to use such Confidential Information
in any manner, and

 

		ii.	they shall not and they shall not permit any company they are associated with or affiliated with to directly or indirectly compete
with Suneva or its Products by selling any injectable dermal filler with non-hyaluronic acid based microspheres or any material with a
label claimed duration of two (2) years or longer in the Territory.

 

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IN WITNESS WHEREOF, this Agreement has been executed by
the parties on the date first above written.

 

	 	SUNEVA MEDICAL, INC.
	 	 
	 	By:	/s/ Preston
    Romm
	 	Name: 	Preston Romm
	 	Title:	President & Chief Executive Officer
	 	 
	 	ST. NOVA
	 	 
	 	By:	/s/ Haishu
    Fu
	 	Name: 	Haishu Fu
	 	Title: 	Chief Executive Officer

 

 

33Exhibit 10.38

 

Suneva Confidential

 

 

 

 

 

DISTRIBUTION AND SUPPLY AGREEMENT

 

BETWEEN

 

SUNEVA MEDICAL, INC. 

 

AND

 

PACIFIC PHARMA CORPORATION

 

     

     

    

 

Suneva Confidential

 

DISTRIBUTION AND SUPPLY AGREEMENT made as of this 29th
day of March, 2012 (“Effective Date”) between

 

SUNEVA MEDICAL, INC., a Delaware corporation
with its principal office at 5870 Pacific Center Blvd, San Diego, CA 92121 (hereinafter called “SUNEVA”) and

 

PACIFIC PHARMA CORPORATION, a corporation
organized under the laws of the Republic of Korea, with its principal office at Seongwon Building, 175-2, Hangangro 2-ga, Yongsan-gu,
Seoul, Korea (hereinafter called “PACIFIC PHARMA”).

 

Defined terms used in this Agreement shall have the meanings set forth
in Section 1 hereof, except as otherwise provided herein.

 

WHEREAS, SUNEVA is engaged in the development, manufacture
and sale of Artefill and wishes to market it in the Territory;

 

WHEREAS, PACIFIC PHARMA is a distributor and seller
of medical and aesthetic products in the Territory and desires to obtain an exclusive right to distribute, promote and sell Artefill in
the Territory;

 

WHEREAS, SUNEVA has agreed, subject to the terms and
conditions of the Agreement, to grant PACIFIC PHARMA the exclusive right to distribute the Product(s) in the Territory and to manufacture
and supply to PACIFIC PHARMA on an exclusive basis in the Territory all of PACIFIC PHARMA’s requirements of the Product(s);

 

WHEREAS, PACIFIC PHARMA has agreed to undertake obtaining
Territory Regulatory Approval for and distribution of such Product(s) in the Territory;

 

WHEREAS, the parties have executed a February 29,
2012 non-binding Term Sheet; and

 

WHEREAS, the parties now wish to memorialize and reduce
to an enforceable, binding contract, the understanding between them.

 

NOW, THEREFORE, the parties agree as follows:

 

		1.	DEFINITIONS

 

For the purposes of this Agreement the flowing terms have
the following meanings:

 

		1.1	“Affiliates” shall mean (a) an entity controlled by a common parent that owns more than fifty percent of the voting
stock of both such entity and one of the parties to this Agreement and (b) such parent company.

 

		1.2	“Applicable Law” shall mean all applicable common law, statutes, ordinances, rules, regulations, codes, requirements,
laws or orders of any Governmental Authority.

 

		1.3	“Batch”, with respect to the Product(s), shall mean a separate and distinct quantity of such Product(s) processed
under continuous and identical conditions and designated by a batch number.

 

		1.4	“Certificate
of Analysis” shall mean a document certifying that a Batch of any Product meets all Specifications.

 

		1.5	“Fiscal Year” shall mean the twelve-month period commencing on January 1st of each year and ending on
December 31st.

 

		1.6	“FOB Origin” shall mean buyer pays Product(s) shipping cost, and takes responsibility for the Product(s) when the
Product(s) leaves SUNEVA’s Facility.

 

		1.7	“cGMP” shall mean current good manufacturing practices as required by the rules and regulations of the Territory
Regulatory Authority.

 

		1.8	“Governmental Authority” shall mean all agencies, commissions, officials, courts and other governmental and regulatory
authorities and instrumentalities of the United States, the Territory and any other countries in which the Product(s) are manufactured,
marketed, sold, tested, investigated or regulated, and all states or other political subdivisions thereof and supranational bodies applicable
thereto.

 

     

     

    

 

		1.9	“IFU” or Instructions For Use shall mean the FDA-approved Instructions For Use of Artefill. The IFU provide important
information for the proper use of the medical device, definition of the intended use of the equipment, explanation of the user interface,
safety instructions and warnings for the user, instructions how to deal with inherent residual risks, avoidance of misuse, cleaning and/or
sterilization instructions, list of accessories and consumables validated by the manufacturer, requirements for safety inspections of
the equipment requirements for (planned) maintenance.

 

		1.10	“Launch Date”, as to each Product, shall mean the date of first commercial sale of
the first Product by PACIFIC in the Territory, which in no case may be later than sixty (60) days following Territory Regulatory
Approval.

 

		1.11	“Launch Notice” shall have the meaning set forth in Section 6.1 hereof.

 

		1.12	“Minimum Milestones” shall mean the minimum annual purchase obligations set forth in Schedule C.

 

		1.13	“Product(s)” shall mean only the Product(s) set forth on Schedule A as may be amended by mutual written
agreement of the parties from time to time.

 

		1.14	“Territory Regulatory Authority” means the KFDA and any and all bodies and organizations regulating the manufacture,
importation, distribution, use and sale of the Product in the Territory, including any Governmental Authority involved in granting approval
of or regulating the investigation, manufacture, distribution, marketing, sale, pricing or reimbursement of the Product(s) in that country
or jurisdiction.

 

		1.15	“SUNEVA’s Facility” shall mean the facility or the facilities in which SUNEVA shall manufacture and export the
Product for sale to PACIFIC PHARMA.

 

		1.16	“SUNEVA’s Marks” shall have the definition set forth in section 18.3.

 

		1.17	“Specifications” means the specifications for any Product as agreed to by the parties and as approved by the applicable
Regulatory Authority and/or by the Territory Regulatory Authority. The Specifications for the Product in Schedule A may be amended by
SUNEVA from time to time, only if specifically requested by applicable Regulatory Authorities. SUNEVA shall provide PACIFIC PHARMA written
notice of any material changes to the Specifications.

 

		1.18	“Technical Information” shall mean the design and manufacturing process and any and all technical knowledge, trade
secrets, analytical methodology, processes, manufacturing and toxicological information, and any and all other technical information or
experience related to the design and manufacturing of the Product(s).

 

		1.19	“Territory” shall mean the Republic of Korea (South Korea). PACIFIC PHARMA must maintain a direct sales commercial
presence (or Suneva-approved subdistributor) in the Territory.

 

		1.20	“Territory Regulatory Approval” shall mean any and all approvals from Territory Regulatory Authority to market,
sell and distribute Products in the Territory.

 

		1.21	“U.S.” means the United States of America and its territories and possessions.

 

		2	APPOINTMENT OF PACIFIC PHARMA AS EXCLUSIVE DISTRIBUTOR AND GRANT OF AUTHORITY TO OBTAIN TERRITORY REGULATORY APPROVAL

 

		2.1	Provided PACIFIC PHARMA is and remains in full compliance with this Agreement and subject to meeting the Minimum Milestones set forth
in Schedule C, SUNEVA hereby grants to PACIFIC PHARMA and PACIFIC PHARMA hereby accepts, the exclusive right and license to import
the Product(s) in finished package form, market, distribute, promote, and sell the Product(s) in the Territory subject to the terms and
conditions of this Agreement. SUNEVA further grants PACIFIC PHARMA a co-exclusive (with SUNEVA) license to manage all regulatory processes,
necessary regulatory filings and communications with Territory Regulatory Authority. It is understood that SUNEVA will be responsible
for communications with the United States Food and Drug Administration (FDA). The Parties shall mutually cooperate with respect to all
necessary regulatory filings and communications. These licenses shall terminate or revert to nonexclusive licenses (in SUNEVA’s
sole discretion) in the event that PACIFIC PHARMA fails to meet the Minimum Milestones set forth on Schedule C hereof.

		2.2	PACIFIC PHARMA shall use commercially reasonable efforts to promote, distribute and sell the Product(s) in and throughout the Territory,
and shall always maintain a reasonably adequate level of stock of Product(s) to meet the market demand for the Product(s) and avoid Product
stock-outs within and throughout the Territory, except where such stock-outs is caused by the delay in Product(s) supply by SUNEVA.

 

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		2.3	All advertisements, promotional materials, packaging and anything else bearing a trademark or service mark (“Marketing Materials”)
shall identify SUNEVA as the owner and/or manufacturer thereof, and shall be subject to prior written approval by SUNEVA.

 

		2.4	PACIFIC PHARMA shall not (i) sell Product(s) directly or indirectly outside the Territory; (ii) export any Product(s) out of the Territory;
or (iii) fill any orders for Product(s) knowing that such orders are intended for export or sale outside the Territory. PACIFIC PHARMA
shall make best efforts to (i) prevent parallel imports to and exports from the Territory; (ii) prevent and report any Product(s) counterfeiting
to SUNEVA and the appropriate Governmental Authorities in the Territory; and (iii) take all commercially reasonable actions to eliminate
any such activity associated with the Product(s) in the Territory. Additionally, PACIFIC PHARMA shall provide SUNEVA reasonably sufficient
information so that SUNEVA can monitor the distribution and sale of Product(s) within the Territory to verify that PACIFIC PHARMA is meeting
its obligation to ensure that the Product(s) are not, directly or indirectly, being redistributed or resold outside the Territory. Any
violation of this provision shall constitute a material breach of this Agreement.

 

		2.5	PACIFIC PHARMA shall not, without prior written consent of
SUNEVA in each instance, appoint any sub-distributor to distribute market, promote and/or sell the Product(s) within the Territory. The
appointment of any sub-distributor shall be on such terms and conditions as SUNEVA may reasonably require in writing provided such terms
and conditions are not inconsistent with the terms and conditions of this Agreement. PACIFIC PHARMA shall submit to SUNEVA, for SUNEVA’s
written prior approval, a copy of any agreement proposed to be entered into between PACIFIC PHARMA and any proposed sub-distributor.
PACIFIC PHARMA shall require that each such agreement shall, without limitation: (i) terminate upon the expiration or earlier termination
of this Agreement; (ii) be expressly subject to this Agreement and any restrictions regarding the Product(s), SUNEVA technical and sales
literature, the SUNEVA Marks and other proprietary information stated herein; (iii) provide that the sub-distributor shall have no claims
against SUNEVA or PACIFIC PHARMA arising from the expiration or termination of this Agreement; and (iv) prohibit the sub-distributor
from appointing further sub-distributors or agents for the sale of Product(s) or assigning any rights or obligations under its agreement
with PACIFIC PHARMA without SUNEVA’s prior written consent. PACIFIC PHARMA shall cause sub-distributors to communicate directly
with PACIFIC PHARMA, not SUNEVA. PACIFIC PHARMA agrees that it shall, at all times, be solely responsible for the acts, deeds or omissions
of any sub-distributor appointed pursuant to this Section 2.5. All distributors or sub-distributors will be considered PACIFIC PHARMA’s
agents.

 

		2.6	All marketing materials created by or for PACIFIC PHARMA that
are used in conjunction with, or relate to the Product(s) must be approved in writing by SUNEVA prior to use, the approval of which shall
not be unreasonably withheld by SUNEVA. Such marketing materials shall contain all required regulatory requirements, copyright, trademark
and accreditation notices as requested by SUNEVA.

 

		2.7	PACIFIC PHARMA shall:

 

		2.7.1	use commercially reasonable efforts to maximize sales of the Product(s) in the Territory through activities such as advertising, direct
mail, participation at local or regional trade shows, and similar activities;

 

		2.7.2	use commercially reasonable efforts to develop a robust distribution network in all major markets in the Territory;

 

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		2.7.3	directly and actively promote and sell the Product(s) at all times within the Territory and during the Term;

 

		2.7.4	develop an appropriate number of Product injector trainers (as mutually agreed with SUNEVA) with adequate medical backgrounds, and
who are properly trained by certified Product physician trainers with at least two (2) years of experience in using injectable dermal
fillers. This will include bringing one or more US physician trainers to the Territory at a maximum expense to Suneva of Fifteen-Thousand
USD ($15,000) for a single trip to the Territory by a U.S. physician. Any additional costs related to physician travel to be shared equally;

 

		2.7.5	furnish SUNEVA with such periodic reports of sales and market conditions as SUNEVA may reasonably require;

 

		2.7.6	manage and implement clinical programs, grant studies, and market development efforts in the Territory. Such clinical and development
programs will be determined solely and paid for by PACIFIC PHARMA but coordinated with by SUNEVA;

 

		2.7.7	maintain an adequate organization of well-trained and qualified personnel to effectively perform all of its duties hereunder;

 

		2.7.8	comply fully with its obligations under labor, tax, social welfare and other laws relating to its personnel;

 

		2.7.9	not knowingly hire any personnel in violation of any restrictive covenants contained in any agreement with a third party or any other
obligations owed to any third party, and PACIFIC PHARMA shall insure that none of its sub-distributors, agents, officers, directors, employees
or representatives shall do so. PACIFIC PHARMA shall also insure that any and all sub-distributors, agents, officers, directors, employees
or representatives engaged or employed by it are not subject to any such obligations;

 

		2.7.10	conduct its business in a professional manner which will reflect positively upon SUNEVA and its Product(s);

 

		2.7.11	at PACIFIC PHARMA’s expense prepare and produce any additional marketing materials (to be approved by Suneva per 2.7.12 below)
needed to promote the Product(s) in the Territory, provided that the need for such additional marketing materials shall be determined
solely by PACFIC PHARMA;

 

		2.7.12	provide SUNEVA materials and other information relating to its proposed marketing and promotional activities and shall not use any
such material without first obtaining the express written consent of SUNEVA management whose consent will not be unreasonably withheld;
in case no reply from Suneva within seven (7) days of the written notice of the materials and promotional activities is forthcoming, such
materials and activities will be deemed approved by Suneva;

 

		2.7.13	cooperate with SUNEVA in sales or promotional programs prepared by SUNEVA;

 

		2.7.14	not, and shall cause its sub-distributors to not, make any materially misleading or untrue statements concerning the Product(s);

 

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		2.7.15	not, and shall cause its sub-distributors, agents and representatives to not, sell, distribute, market, advertise or solicit purchase
orders for any other injectable dermal filler containing non-hyaluronic acid based microspheres or any injectable dermal filler with a
label claimed duration of two (2) years or longer in the Territory. For avoidance of doubt, this provision does not apply to any product
under internal development by PACIFIC PHARMA as of the Effective Date;

 

		2.7.16	keep, for at least three (3) years after termination of this Agreement, records of all Product(s) sales and customers reasonably sufficient
to adequately administer a recall of any Product(s) and to fully cooperate with any decision by SUNEVA to recall, retrieve and/or replace
any Product(s);

 

		2.7.17	keep SUNEVA informed of relevant market trends, customer needs, competitive activity, economic and regulatory conditions and PACIFIC
PHARMA’s sales and inventory of Product(s);

 

		2.7.18	execute, and require its customers to execute, subject to Applicable Law such license, proprietary data or other agreements as SUNEVA
may reasonably require to satisfy its obligations under license and other agreements with third parties;

 

		2.7.19	promptly advise SUNEVA of any change in PACIFIC PHARMA’s ownership or management;

 

		2.7.20	use best efforts to control parallel imports to and exports from the Territory;

 

		2.7.21	use best efforts to prevent and report to SUNEVA any Product(s) counterfeiting, and take commercially reasonable actions reasonably
requested by SUNEVA to eliminate any such activity associated with the Product(s) in the Territory;

 

		2.7.22	enforce the Product(s) trademark and not promote any other injectable dermal filler meeting the specification described in Section
2.7.15 above during the Term of this Agreement;

 

		2.7.23	subject to Section 3.2, use its best efforts to prepare and submit, entirely at its own expense, the application for Territory Regulatory
Approval within three (3) months after it receives the Product(s) dossier from SUNEVA;

 

		2.7.24	use best efforts to obtain, entirely at its own expense, Territory
Regulatory Approval within eight (8) months after it submits the application to the Territory Regulatory Authority.

 

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	3	TERRITORY REGULATORY APPROVAL

 

		3.1	SUNEVA hereby grants to PACIFIC PHARMA a license (exclusive to all but SUNEVA) to prepare and file the application for Territory Regulatory
Approval and to hold such Territory Regulatory Approval in its name. Such license is subject to SUNEVA’s right, but not obligation,
to approve in advance all submissions. It is understood and agreed that such applications may seek approvals for the Product(s) with and
without required use of a skin test. PACIFIC PHARMA agrees that it shall not authorize any of its sub-distributors or any other party
to apply for or hold Territory Regulatory Approval without the express written consent of SUNEVA.

 

		3.2	PACIFIC PHARMA at its sole cost shall prepare for filing with the Territory’s Regulatory Authority, the application, including
all necessary translations, for Territory Regulatory Approval. SUNEVA shall provide the Product(s) dossier and other information reasonably
requested by PACIFIC PHARMA that is fully consistent with and satisfies the requirements of Territory Regulatory Authority to obtain Territory
Regulatory Approval.

 

		3.3	PACIFIC PHARMA shall provide SUNEVA, upon request, copies of all communications with Territory Regulatory Authority or in any way
related to obtaining Territory Regulatory Approval.

 

		3.4	Following receipt of Territory Regulatory Approval, PACIFIC PHARMA shall at its sole cost maintain the Territory Regulatory Approval
in good standing. If at any time this Agreement thereafter terminates or expires, PACIFIC PHARMA shall, upon SUNEVA’s written request
and at SUNEVA’s cost, take all necessary steps to transfer the Territory Regulatory Approval to SUNEVA or its designee and shall
cooperate with SUNEVA and take such further actions as may be necessary to effect such transfer with the Territory Regulatory Authority
(including but not limited to applying to the Territory Regulatory Authority to effect such transfer and providing the relevant Product
registration files to SUNEVA or its designee), and providing all SUNEVA documents from PACIFIC PHARMA’s or its affiliate’s
possession, and providing or executing any documents or certificates reasonably requested by SUNEVA to effect the transfer of the Territory
Regulatory Approval within 30 days of the termination or expiration of this Agreement, or as reasonably requested by SUNEVA thereafter.

 

		3.5	PACIFIC PHARMA shall prepare at its sole cost any necessary translations of Product-related documents, IFU, scientific or commercial
literature, or other related documents necessary for obtaining or maintaining Territory Regulatory Approval. PACIFIC PHARMA will translate
all documents in full and not knowingly omit any information, and shall provide a copy of the translation/authorized certification to
SUNEVA as evidence of proper and accurate translations prior to PACIFIC PHARMA’s commencing distribution.

 

		3.6	Each Party shall immediately notify the other Party of any inspections by any Governmental Authority or the Territory Regulatory Authority
or any other regulatory issues related to the Product(s). Each Party shall also have the duty to immediately notify the other Party if
it becomes aware of any concern related to the efficacy or safety of Product(s).

 

		3.7	SUNEVA shall have final approval over all labels, labeling, indications or claims regarding the Product submitted to Territory Regulatory
Authority. SUNEVA shall, in its sole discretion, have final approval for any matter that affects, or could reasonably affect, Territory
Regulatory Approval for the Product(s).

 

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		4	SUNEVA’S COVENANTS

 

		4.1	Upon receipt and acceptance of orders under Section 5 hereof, SUNEVA shall make reasonable commercial efforts to manufacture the Product(s)
and to supply such Product(s) to PACIFIC PHARMA with one shipment (consisting of one or more cold boxes) per quarter, pursuant to forecasts
and purchase orders placed by PACIFIC PHARMA in accordance with this Agreement.

 

		4.2	SUNEVA may, upon reasonable notice with respect to any Product(s) and without liability to PACIFIC PHARMA, alter the specifications
for any Product(s) as required by Applicable Law or, in SUNEVA’s sole and exclusive judgment, as needed to maintain competiveness
in Territory or any other market. SUNEVA will make such modified Product(s) containing bovine collagen and PMMA microspheres available
to PACIFIC PHARMA under same terms of this Agreement. However, PACIFIC PHARMA will undertake to obtain at its sole expense any necessary
Territory Regulatory Approval for such changes; provided, however that if the said alteration affects the marketability and profitability
of Product(s), the parties shall amend this Agreement to accommodate such change of the marketability and profitability of Product(s)
and provided further that Suneva shall consult in advance with PACIFIC PHARMA regarding the feasibility in obtaining/maintaining Territory
Regulatory Approval for such altered specifications, and, if PACIFIC PHARMA at its sole discretion judges such alteration is not feasible,
PACIFIC PHARMA shall have no obligation to undertake obtaining Territory Regulatory Approval. If SUNEVA disagrees, it may elect to bear
the full cost to supplement the dossier or supply other information that would, in its judgment, make such application for Territory Regulatory
Approval feasible. In any event, SUNEVA is and shall remain able to supply the Product(s) in current specification as of the Effective
Date of this Agreement, unless Applicable Law prohibits it from doing so.

 

		4.3	If necessary at PACIFIC PHARMA’s sole judgment, SUNEVA shall furnish PACIFIC PHARMA with a Certification of Foreign Government
(“CFG”), Certification of Bovine Spongiform Encephalopathy (“BSE”) and the dossier for the purpose of obtaining
Territory Regulatory Approval.

 

		4.4	SUNEVA will provide such further materials as reasonably necessary for Territory Regulatory Approval.

 

		5	RECEIPT AND DISTRIBUTION OF THE PRODUCT BY PACIFIC PHARMA

 

		5.1	PACIFIC PHARMA shall, at its sole expense, maintain, transport and store Product(s) at all times within the approved storage and transportation
conditions (including, without limitation storing and transporting the Product(s) at a temperature of 2 to 8 degrees C) as necessary to
maintain Product(s) integrity.

 

		5.2	PACIFIC PHARMA shall maintain temperature traces for each shipment, from point of receipt through point of delivery to final holding
cold storage area (prior to further distribution, if applicable). This data must remain on file and be provided to SUNEVA upon request
to validate constant Product(s) temperature compliance.

 

		5.3	PACIFIC PHARMA shall not change, alter, modify, rebrand, or tamper with the Product(s) or packaging in any way other than, with SUNEVA’s
prior express written consent, to repackage or translate the package container, IFU, or other packaging modification necessary to comply
with Applicable Law.

 

		6	FORECASTS, ORDERS, DELIVERY AND PURCHASE OBLIGATIONS

 

		6.1	When SUNEVA concludes and provides notice that, in its sole and exclusive judgment, Territory Regulatory Approval is likely to be
received within a six (6) month time frame the parties shall meet and agree upon an estimated Launch Date for the Product(s). The agreed
upon Launch Date shall in no event be later than sixty (60) days from the date Territory Regulatory Approval is actually obtained. In
the event the Parties are unable to agree upon a Launch Date within thirty (30) days after SUNEVA provides the aforementioned notice,
the Parties agree that the Launch Date shall be sixty (60) days from Territory Regulatory Approval. Within ten (10) days of reaching such
agreement (or failing such agreement, within ten (10) days from the date Territory Regulatory Approval is actually obtained) PACIFIC PHARMA
shall send to SUNEVA an initial purchase order for such Product(s) to be purchased by PACIFIC PHARMA, prior to the Launch Date. Such initial
purchase order shall function as a Launch Notice.

 

		6.2	On or before the first day of each calendar quarter commencing after the Launch Date of the Product, PACIFIC PHARMA shall provide
to SUNEVA a rolling 12-month forecast of the amount of such Product(s) to be ordered for delivery during each of the subsequent four (4)
quarters following the date of the forecast. Every quarter PACIFIC PHARMA shall update the rolling forecast with its desired purchase
amounts for the subsequent four quarters. The first and second quarters of such forecast shall be a binding obligation on the part of
the Parties to this Agreement (“Binding Forecast”), and the third through fourth quarters cannot vary by more than 25 percent
(up or down) from the original forecasted amount for that quarter. Should PACIFIC PHARMA wish to increase the original forecast amount
by greater than 25%, SUNEVA shall use best efforts to satisfy this additional demand. PACIFIC PHARMA shall use all reasonable efforts
to make each forecast as accurate as possible.

 

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		6.3	PACIFIC PHARMA shall place written, firm, non-cancellable purchase orders with SUNEVA for the quantities (consistent with 6.2 hereof)
and the delivery dates (consistent with SUNEVA’s then current lead times) of each Product(s) that it desires to purchase under this
Agreement for commercial use; provided, however, that where the purchase order adds to or is in conflict with the terms and conditions
of this Agreement, this Agreement, and not such standard terms and conditions set forth in the purchase orders, shall govern the purchase
and sale of the Product(s). PACIFIC PHARMA agrees to place such purchase orders at least one hundred eighty (180) days in advance of the
specified delivery date, unless otherwise agreed to in writing by the parties. Save in case of Force Majeure, SUNEVA is obliged to use
best efforts to supply the Product(s) in accordance with the purchase orders and on or prior to the designated delivery date.

 

		6.4	PACIFIC PHARMA shall at all times maintain the minimum purchase obligations of the Product(s) set forth on Schedule C.

 

		6.5	Delivery terms are FOB Origin, SUNEVA’s manufacturing and warehouse facility in San Diego, California (Incoterms 2000). All
transportation, storage, distribution, and maintenance costs of Product(s) and skin test shall be born by PACIFIC PHARMA. SUNEVA shall
assist PACIFIC PHARMA by selecting a cold-storage shipment system and such cold storage transportation costs will be borne by PACIFIC
PHARMA.

 

		6.6	As detailed in Schedule C, SUNEVA will provide free Product(s) and test kits during the Term to support Product(s) training
and medical education, as follows:

 

		6.6.1	For the first three years following Territory Regulatory Approval: 1 Free Artefill kit (5 syringes) per every 5 Artefill kits (25
syringes) purchased. The primary intended use of said free kits is for training of physicians (not for resale) in the Territory, marketing
and promotion, however it is understood that some free goods distributed to physicians in the Territory may be resold and that PACIFIC
PHARMA has discretion in this matter so long as all other terms of this Agreement are honored. In subsequent years, the same ratio of
free to purchased goods will apply so long as PACIFIC PHARMA exceeds the prior year’s agreed upon Minimum Milestones.

 

		6.6.2	SUNEVA will provide one free skin test kit (5 x 0.3cc skin test syringe) for every one Artefill kit purchased; provided that PACIFIC
PHARMA shall not charge any party, customer, doctor or otherwise for such skin test kits.

 

		7	COMPLIANCE WITH LAW

 

		7.1	It shall be the responsibility of PACIFIC PHARMA and SUNEVA, respectively, to follow all procedures and take all actions that are
necessary or required for agreements of this type by Applicable Law.

 

		7.2	Neither party shall be obligated to carry out or perform any term of this Agreement if performance constitutes a violation of Applicable
Law. In such an event, the other terms of this Agreement shall continue and the parties shall use all reasonable efforts to re-negotiate
and amend this Agreement so that performance of this Agreement as so amended will not involve any such violation.

 

		8	PRODUCT COMPLAINTS

 

		8.1	Each Party shall cooperate fully with the other Party in dealing with customer complaints concerning the Product and shall take reasonable
action to resolve promptly and follow up with regard to such complaints as required by Regulatory Authority or Applicable Law.

 

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		8.2	Without limiting the generality of the foregoing, PACIFIC PHARMA shall:

 

		8.2.1	notify SUNEVA in a timely manner as required by Regulatory Authority or Applicable Law in the Territory all such complaints that indicate
a potentially significant effect involving the safety or efficacy of the Product(s) and or involving a patient and or end user;

 

		8.2.2	provide copies to SUNEVA within a commercially reasonable time of all customer complaints received by PACIFIC PHARMA relating to the
Product(s);

 

		8.2.3	keep and maintain records of all customer complaints received by PACIFIC PHARMA relating to the Product(s); and

 

		8.2.4	otherwise provide such assistance and information as SUNEVA reasonably requests to fulfill SUNEVA’s complaint handling obligations
for the Product(s).

 

		8.3	Any Product(s) complaints must be adequately investigated and addressed. However, subject to Applicable Law and Territory Regulatory
Authority, corrective action shall be taken by PACIFIC PHARMA only if and when SUNEVA notifies PACIFIC PHARMA in writing requesting that
such a corrective action plan that SUNEVA subsequently approves be implemented, and further provided that SUNEVA shall solely bear the
cost for such corrective action, except where the corrective action is mandated by Territory Regulatory Authority in which case costs
will be allocated pursuant to Section 11.4.

 

		9	ADVERSE EVENT REPORTING

 

		9.1	PACIFIC PHARMA shall be responsible for reporting to SUNEVA any adverse device events, malfunctions, incidents, near incidents and
other reportable events related to the Product(s) pursuant to the Applicable Law in the Territory.

 

		9.2	PACIFIC PHARMA shall provide such assistance and information as SUNEVA reasonably requests to fulfil its adverse event reporting obligations
for the Product(s), as required by Territory Regulatory Authority and Applicable Law.

 

		9.3	PACIFIC PHARMA shall keep and maintain records of all customer complaints received by PACIFIC PHARMA relating to the Product(s) as
required by Territory Regulatory Authority or Applicable Law and provide copies to SUNEVA upon request.

 

		10	GOOD MANUFACTURING PRACTICES

 

		10.1	SUNEVA is responsible for ensuring that all Products are designed and manufactured in material compliance with cGMP, including FDA’s
Good Manufacturing Practices, which are now codified in the Quality System Regulation (“QSR”), as well as international quality
system standards, such as ISO 13485:2003, as necessary.

 

		10.2	PACIFIC PHARMA is responsible for ensuring that it conducts any quality related activities in reasonable compliance with the requirements
of the Territory Regulatory Authority.

 

		11	PRODUCT RECALLS

 

		11.1	If PACIFIC PHARMA in good faith determines that a recall involving the Product(s) is warranted, PACIFIC PHARMA shall immediately notify
SUNEVA in writing and shall advise SUNEVA of the reasons underlying its determination that a recall or product correction is warranted.
SUNEVA shall retain full authority and responsibility for making recall decisions and implementing such actions, unless the Territory
Regulatory Authority mandates PACIFIC PHARMA to do so.

 

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		11.2	If SUNEVA decides to conduct a recall, SUNEVA will provide written notice to PACIFIC PHARMA within twenty-four (24) hours of such
decision, and a summary of the reason for and implementation of such action. SUNEVA shall provide such information as PACIFIC PHARMA may
reasonably require to prepare any additional customer notification of such recall, which notification shall be issued by PACIFIC PHARMA.

 

		11.3	Any such recall by either party shall be handled in accordance with the policies and procedures maintained by both parties. SUNEVA
shall submit to PACIFIC PHARMA for submission to Territory Regulatory Authority any necessary reports, as required under the Applicable
Law, including 21 C.F.R. Part 806, and shall be responsible for drafting any recall notifications with respect to the Product(s). PACIFIC
PHARMA shall notify Territory Regulatory Authority of such recall, in accordance with Applicable Law once SUNEVA has officially notified
PACIFIC PHARMA.

 

		11.4	The Party whose actions or inaction created the circumstances necessitating the recall shall reimburse the other Party for all reasonable
out-of-pocket costs and expenses associated with conducting the recall.

 

		11.5	During the term of this Agreement, PACIFIC PHARMA shall maintain records of all sales of the Product(s) and customers resonably sufficient
to adequately administer a recall, market withdrawal or correction. Immediately upon termination or expiration of this Agreement, PACIFIC
PHARMA shall provide SUNEVA with a copy of all distribution records relating to the Product(s).

 

		12	GOVERNMENTAL INSPECTIONS AND INQUIRIES

 

		12.1	PACIFIC PHARMA shall promptly, and in any event within three (3) business days after the date of receipt of notice, notify SUNEVA
in writing of, and shall provide SUNEVA with copies of, any correspondence and other documentation received or prepared by PACIFIC PHARMA
in connection with any of the following events to the extent necessary to meet the requirements of any Governmental or Territory Regulatory
Authority, as it relates to the Product(s):

 

		12.1.1	receipt of a regulatory letter, warning, recall notice, notice of inspection or similar communication from any Governmental or Territory
Regulatory Authority in connection with the storage, marketing, advertisement, sale and/or distribution of the Product(s); and

 

		12.1.2	any Governmental or Territory Regulatory Authority’s comments relating to the Product(s) that may require a response or action
by SUNEVA.

 

		12.2	Without limiting the generality of the foregoing, in the event that PACIFIC PHARMA or any Agent receives a letter or comments from
any such Governmental or Territory Regulatory Authority in connection with any of the Product(s) that requires a response or action by
SUNEVA, PACIFIC PHARMA shall promptly provide to SUNEVA any data or information required in preparing such response that relates to storage,
marketing, advertising, sale or distribution of the Product(s), and PACIFIC PHARMA will cooperate fully with SUNEVA in preparing such
response.

 

		12.3	In the event any facility that is used by PACIFIC PHARMA or any agent to store, market, advertise, distribute
or sell any Product(s) is inspected by representatives of any Governmental or Territory Regulatory Authority, PACIFIC PHARMA shall notify
SUNEVA promptly upon learning of such inspection and shall supply SUNEVA with copies of any correspondence that relates to such inspection.
SUNEVA may, at its election, send representatives to, and may participate in any portion of such inspection that relates to any of the
Product(s). PACIFIC PHARMA shall furnish to SUNEVA copies of all material information supplied to, or supplied by, such Governmental or
Territory Regulatory Authority, including observations and responses within five (5) business days after the delivery of such information
by the Governmental or Territory Regulatory Authority.

 

		12.4	PACIFIC PHARMA shall provide SUNEVA with a copy of any response related to such visit or inspection for SUNEVA’s review and
comment prior to submission of the response. PACIFIC PHARMA shall provide SUNEVA with a copy of the final response promptly after it is
submitted to the Governmental or Territory Regulatory Authority.

 

		12.5	In the event any Governmental or Territory Regulatory Authority detains or seizes any Product(s) in the custody or control of PACIFIC
PHARMA or its agents, PACIFIC PHARMA shall promptly send retained samples of each applicable Product and duplicate reports relating to
such seizure to SUNEVA, provided that such action does not violate Applicable Law.

 

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		13	AUDITS

 

		13.1	Within a reasonable time, but no later than thirty (30) days’ after prior written notice, is given by SUNEVA, the facilities
that are used by PACIFIC PHARMA or any agent to store, market, advertise, distribute or sell any Product(s) shall be open to audit, inspection,
examination and evaluation, during normal working hours at any time (unless an audit or inspection is then being conducted by Regulatory
Authority), and no more than once per calendar year (unless deemed necessary by Suneva, due to a product recall, event, complaint and
or other related action(s) which may require an on-site audit, inspection and or visit), by SUNEVA or its authorized representatives to
the extent reasonably necessary to evaluate PACIFIC PHARMA’s or agent’s compliance with Applicable Law, and other requirements
of this Agreement in connection with its performance under this Agreement. During such audit, inspection, examination or evaluation, PACIFIC
PHARMA or its agent shall permit SUNEVA or its authorized representatives to inspect and audit records reasonably necessary to evaluate
PACIFIC PHARMA’s compliance with Applicable Law, and other requirements of this Agreement in connection with its performance under this
Agreement.

 

		14	PRODUCT MODIFICATIONS

 

		14.1	PACIFIC PHARMA shall not change, alter, modify, rebrand, or tamper with the Product(s) in any way other than to affix a SUNEVA approved
label to the package or translate the package container, and/or IFU, necessary to obtain or maintain Territory Regulatory Approval, without
prior written approval and review from SUNEVA.

 

		14.2	All translations shall be subject to review and approval by SUNEVA prior to any use by PACIFIC PHARMA.

 

		14.3	Any and all affixed labels and/or translations to the Product(s) packaging must be approved in advance by SUNEVA.

 

		15	JOINT OPERATING COMMITTEE

 

		15.1	Governance and Reporting.

 

		15.1.1	The parties shall form a Joint Operating Committee (JOC) to coordinate efforts, communicate information, data and maximize the Product(s)
potential in the Territory. The JOC will meet quarterly, with at least one face-to-face meeting per year. Both companies will assign senior
personnel to the JOC with the principal representative for each company being at least a Director level manager.

 

		15.1.2	At each JOC, SUNEVA shall update PACIFIC PHARMA on new Product(s) clinical results, marketing strategies and implementation outside
of the Territory, coordination, production plan updates, and manufacturing changes for the Product. SUNEVA will also provide guidance
on Ex-Territory commercial best practices and clinical study results that would benefit the Product in the Territory.

 

		15.1.3	At each JOC, PACIFIC PHARMA shall provide an update on sales and marketing, customer plans, programs, adoption, and financial results.
PACIFIC PHARMA shall also provide a yearly financial summary of Product(s) in the Territory including aggregate sales, sales by customer,
and the expense budget associated with Product sales.

 

		15.1.4	Within sixty (60) days of the Effective Date and thereafter once a year no later than March 1, PACIFIC PHARMA shall provide the JOC
a Yearly Operating Plan for the Product(s) in the Territory for review at the JOC. The Yearly Operating Plan for the Product(s) will outline
commercial, clinical, regulatory, and other functional area goals, strategies, and implementation plans.

 

		15.1.5	Subject to the requirements of this Agreement, PACIFIC PHARMA shall have final decision making responsibility for any commercial decision
related to the Product(s) in the Territory other than decisions related to labeling, regulatory filings, communication, clinical development
plans, and submissions which must be mutually agreed upon by the JOC. Additionally, both parties will mutually agree on Regulatory decisions,
strategy, and regulatory agency filings for the Product(s) in the Territory.

 

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		16	PRODUCT RETURNS

 

		16.1	Returns shall only be authorized due to a defect or suspected defect reasonably demonstrated to SUNEVA, and must be authorized in
writing by SUNEVA with an appropriate authorization number prior to the return of any Product(s). Defective Product(s) returned must,
wherever possible, be unopened and undamaged, and must be received within forty-five (45) days of receipt by PACIFIC PHARMA for replacement
or credit. Product(s) returned after forty-five (45) days will not be accepted for return. No cash refunds will be issued for returns
of Product(s); credits for such returns will be applied to the account of PACIFIC PHARMA.

 

		17	PRODUCT PRICE AND PAYMENT

 

		17.1	PACIFIC PHARMA shall pay SUNEVA a non-refundable license fee of One-Hundred and Twenty-Five Thousand United States Dollars ($125,000)
upon Territory Regulatory Approval or by December 3, 2012, whichever occurs first.

 

		17.2	PACIFIC PHARMA shall pay SUNEVA a non-refundable milestone fee of One-Hundred Twenty-Five Thousand United States Dollars ($125,000
USD) upon PACIFIC PHARMA’s reaching accumulated gross sales of Five-Million United States Dollars ($5,000,000 USD) in the Territory.

 

		17.3	PACIFIC PHARMA shall pay SUNEVA a fixed price for the Product(s) as set forth in Schedule C.

 

		17.4	PACIFIC PHARMA shall establish a Letter of Credit (LOC) in advance of SUNEVA shipping each order. SUNEVA shall draw against this LOC
forty-five (45) days following PACIFIC PHARMA’S receipt of Product(s) from said order.

 

		17.5	All payment shall be exclusive of any Withholding, VAT or other Taxes and to clarify and without limitation, PACIFIC PHARMA shall
pay all taxes, VAT, duties, other governmental assessments, insurance, shipping and all similar charges however labeled.

 

		17.6	PACIFIC PHARMA shall assume full responsibility for all its own costs and expenses incurred in carrying out its obligations under
this Agreement, including but not limited to all rents, salaries, commissions, advertising, translations of documents and materials, demonstration,
travel and accommodation for the employees, agents, representatives or other personnel of PACIFIC PHARMA.

 

		17.7	Prices do not include, and PACIFIC PHARMA shall be responsible for, all excise, sales, use, value added and other taxes, including
any goods and services tax payable in the Territory and excluding only any U.S. tax on the income of SUNEVA.

 

		18	INTELLECTUAL PROPERTY RIGHT, TRADEMARKS, CONFIDENTIALITY,
AND PROCESS TRADE SECRETS

 

		18.1	PACIFIC PHARMA acknowledges and agrees that SUNEVA owns the Technical Information, and all industrial and intellectual property rights
of any kind or relating to the Technical Information, including the right to patents, registered or other designs, copyright, trademarks
or trade names, and any other confidential information related to the Product. Nothing contained in this Agreement shall be effective
to give PACIFIC PHARMA any rights of ownership in or to the Technical Information, or any intellectual property owned by SUNEVA, whatsoever.

 

		18.2	SUNEVA has established or is in the process of establishing a global international brand name and trademark for the Product(s) (“Product
Brand”). Such trademark and brand will be used by PACIFIC PHARMA in the Territory unless there is a regulatory restriction or prevention
of such brand name. SUNEVA will work in good faith with PACIFIC PHARMA to insure such brand name and Trademark is mutually acceptable
but final decision with international brand name and Product trademark shall be SUNEVA’s.

 

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		18.3	During the Term of this Agreement, SUNEVA grants to PACIFIC PHARMA an exclusive license for use only in the Territory to the trademarks
listed in Schedule B and the Product Brand (“SUNEVA Marks”) for the sole and exclusive purpose of marketing and selling
Product in the Territory. SUNEVA may inspect and monitor PACIFIC PHARMA’s use of the SUNEVA Marks. PACIFIC PHARMA is not granted
any right, title or interest in the SUNEVA Marks other than the foregoing limited license, and PACIFIC PHARMA shall not use any SUNEVA
Marks as part of PACIFIC PHARMA’s business, entity, corporate or trade name or permit any third party to do so. Any and all goodwill
generated by PACIFIC PHARMA’s use of the SUNEVA Marks shall inure solely to the benefit of SUNEVA.

 

		18.4	Unless otherwise agreed by SUNEVA in writing, PACIFIC PHARMA shall not identify Product(s) by any designation other than the Product
Brand.

 

		18.5	PACIFIC PHARMA shall use SUNEVA Marks solely with respect to Product(s) purchased from SUNEVA as provided in this Agreement, and only
in accordance with the standards of quality established or approved by SUNEVA or its designee.

 

		18.6	SUNEVA is, and at all times shall remain the owner of Suneva Marks. PACIFIC PHARMA will not at any time do, cause to be done, or permit
any of its employees, agents, contractors and subcontractors to commit any act inconsistent with, contesting or in any way impairing,
or tending to impair, such ownership. All use of SUNEVA Marks, and goodwill accruing therein, shall inure to the benefit of and be on
behalf of SUNEVA or its Affiliates. Nothing in this Agreement provides PACIFIC PHARMA any right, title or interest in the Trademarks other
than the right to use the Trademarks solely within the Territory in accordance with this Agreement. In the event that PACIFIC PHARMA acquires
any rights in the Trademarks in connection with PACIFIC PHARMA activities pursuant to this Agreement, PACIFIC PHARMA shall assign, and
hereby does assign, to SUNEVA or its Affiliates all such rights, including any related goodwill.

 

		18.7	 PACIFIC PHARMA shall not operate an Internet site that references
any of the Products or the SUNEVA Marks (“PACIFIC PHARMA Web Site”) without the prior written consent of SUNEVA. In consideration
of SUNEVA allowing PACIFIC PHARMA to reference the Product(s) or use the SUNEVA Marks in PACIFIC PHARMA’s Web Site, SUNEVA may
provide and PACIFIC PHARMA shall post on the PACIFIC PHARMA Web Site, mandatory content, including but not limited to privacy policies,
terms of use, copyright and trademark notices, and graphics and trademark policies. Subject to SUNEVA’s prior written consent,
PACIFIC PHARMA shall prominently provide on the home page of the PACIFIC PHARMA Web Site a link to SUNEVA’s Internet site in location,
style, size and manner specified by SUNEVA. PACIFIC PHARMA shall be limited to using SUNEVA Marks in connection with the Internet as
follows:

 

		18.7.1	The use must be in compliance with Applicable Law regarding advertising of regulated products and/or pharmaceuticals on the Internet
and must be approved by SUNEVA prior to such use;

 

		18.7.2	No license is granted to use or obtain rights to any “.com” generic code domain, or any other such top-level domain, for
any Trademark. All domain names containing the Trademark will be registered and maintained by and in the name of SUNEVA or its designee;

 

		18.7.3	Appropriate disclaimers must be included in any website to the effect that it is intended for residents within the Territory only;
and

 

		18.7.4	In using any of the Trademarks on the Internet, PACIFIC PHARMA will not have and will not represent in any way that it has any title
or right to the ownership or registration or their use, except as provided in this Agreement. PACIFIC PHARMA will at all times indicate
that each of the Trademarks is a trademark of SUNEVA and is used under license.

 

		18.7.5	PACIFIC PHARMA may not use any SUNEVA Marks in connection with any domain name, directory, address, locator, linking, co-branding,
metatag, or with any other Internet search strategy.

 

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		18.8	PACIFIC PHARMA shall provide prompt notice to SUNEVA of any infringement or potential infringement of the SUNEVA Marks by a third
party and of any challenge to its use of the SUNEVA Marks by a third party. SUNEVA shall have the sole right, but not the obligation,
to enforce any such Trademarks against such Third Party infringer, in its discretion, and to settle or compromise any such possible infringement
by taking such action as SUNEVA may determine in its sole and absolute discretion using counsel of their choice. PACIFIC PHARMA shall
cooperate fully with SUNEVA in any legal action taken by SUNEVA against such third parties, provided that SUNEVA shall pay all expenses
of such action and all damages which may be awarded or agreed upon in settlement of such action shall accrue to SUNEVA.

 

		18.9	PACIFIC PHARMA agrees not to use or contest, during or after the Term of this Agreement, any SUNEVA Marks anywhere in the world (or
any name, mark or designation similar thereto).

 

		18.10	PACIFIC PHARMA shall not remove or alter any SUNEVA trade names, trademarks, copyright notices, serial numbers, labels, tags or other
identifying marks, symbols or legends affixed to any Product(s), documentation or containers or packages.

 

		18.11	PACIFIC PHARMA shall not adopt, use or register any words, phrases or symbols that are identical to or confusingly similar to any
of SUNEVA’s Marks, or oppose any such registration by SUNEVA. Upon termination of this Agreement, PACIFIC PHARMA shall immediately
cease any use of the SUNEVA Marks in any manner. In addition, PACIFIC PHARMA hereby appoints, empowers SUNEVA as its attorney-in-fact,
which appointment is coupled with an interest, to allow and shall assist SUNEVA, if requested, to cancel, revoke or withdraw any governmental
registration or authorization permitting PACIFIC PHARMA to use the SUNEVA Marks in the Territory. To effectuate the purposes of this provision,
PACIFIC PHARMA shall sign and deliver any documents and perform all further acts as may be reasonably requested by SUNEVA.

 

		19	RELATIONSHIP OF SUNEVA AND PACIFIC PHARMA

 

		19.1	Notwithstanding anything set forth herein to the contrary, the relationship between SUNEVA and PACIFIC PHARMA that is created by this
Agreement shall be that of independent contractors, vendor and purchaser, and not that of a partnership, franchise, employment, principal
or agent, or joint or co-ventures. In the performance of this Agreement, PACIFIC PHARMA shall have no authority to assume or create any
obligation or responsibility, either expressed or implied, on behalf of or in the name of SUNEVA, or to bind SUNEVA or its Affiliates
in any manner whatsoever and SUNEVA shall have no authority to assume or create any obligation or responsibility, either express or implied,
on behalf of or in the name of PACIFIC PHARMA or to bind PACIFIC PHARMA or its Affiliates in any manner whatsoever. Each party shall indemnify
the other party for any claim asserted by any third party that the acts of such party or any of its Affiliates created any obligation
or responsibility of the other party other than as expressly set forth in this Section.

 

		19.2	If this Agreement is terminated for any reason, neither party shall thereafter use, or permit anyone else under its control to use,
the other’s name in the promotion of its business or the offer for sale of any goods and neither party shall package or label any goods
in a manner that the other party hereto might reasonably consider to be imitative of any goods sold by such party.

 

		20	WARRANTIES LIMITATIONS OF LIABILITY

 

		20.1	PACIFIC PHARMA hereby represents and warrants to SUNEVA that:

 

		(a)	it has the corporate authority to enter into this Agreement and to perform its obligations hereunder;

 

		(b)	no approval, action or authorization by any Governmental Authority is required for PACIFIC PHARMA’s execution and performance
hereof (except for Territory Regulatory Approval) which has not already been obtained;

 

		(c)	there is no legal, contractual or other restriction, limitation or condition which might affect adversely its ability to perform hereunder.

 

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		20.2	Subject to 20.3, SUNEVA hereby represents and warrants to PACIFIC PHARMA that:

 

		(a)	it has the corporate authority to enter into this Agreement and to perform its obligations hereunder;

 

		(b)	it is not aware of any legal contractual or other restriction, limitation or condition that might affect adversely its ability to
perform hereunder.

 

		20.3	Disclaimer of Warranties. SUBJECT TO 10.1, SUNEVA GRANTS NO WARRANTIES, EITHER EXPRESS OR IMPLIED, WITH REGARD TO THE PRODUCTS OR
THE SUNEVA MARKS, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT EXCEPT THAT
THE PRODUCTS ARE FREE FROM DEFECTS IN MATERIAL AND WORKMANSHIP.

 

		20.4	SUBJECT TO 21 INDEMNIFIACTION, PACIFIC PHARMA AGREES THAT SUNEVA SHALL NOT BE LIABLE TO PACIFIC PHARMA OR ANY OF ITS AFFILIATES OR
SUBDISTRIBUTORS OR ANY THIRD PARTY FOR ANY LOSS OR DAMAGE INCLUDING, WITHOUT LIMITATION, ANY CAUSED BY THE PRODUCTS UNDER THIS AGREEMENT
OR ANY OTHER PERFORMANCE UNDER THIS AGREEMENT, EXCEPT IN THE CASE WHERE SUCH LOSS OR DAMAGE COMES FROM DEFECTS IN THE PRODUCTS.

 

		20.5	NEITHER PARTY SHALL HAVE ANY LIABILITY OF ANY KIND TO THE OTHER PARTY OR ANY THIRD PARTY FOR ANY SPECIAL, INDIRECT, INCIDENTAL OR
CONSEQUENTIAL LOSSES OR DAMAGES, EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH POTENTIAL LOSS OR DAMAGE BY THE OTHER
PARTY OR ANY THIRD PARTY.

 

		20.6	IN NO EVENT SHALL SUNEVA BE LIABLE FOR ANY DAMAGES IN EXCESS OF THE AGGREGATE AMOUNTS ACTUALLY PAID BY PACIFIC PHARMA, TO SUNEVA UNDER
THIS AGREEMENT DURING THE IMMEDIATELY PRECEDING SIX (6) MONTH PERIOD. THIS LIMITATION SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL
PURPOSE OF ANY LIMITED REMEDY PROVIDED FOR HEREIN.

 

		21	INDEMNIFICATION

 

		21.1	PACIFIC PHARMA agrees to indemnify SUNEVA against and hold SUNEVA and its employees, officers, directors and Affiliates harmless from
any and all loss (except consequential loss, such as, for example, loss of business or of profits), liability, damage, claim, cost and
expense (including, without limitation, reasonable attorney’s fees and liabilities for personal injury suffered by any person) arising
from or in connection with any:

 

		(a)	breaches of representations, warranties, conditions, covenants or agreements contained in this Agreement;

 

		(b)	any other misrepresentation or breach of this Agreement by PACIFIC PHARMA or its agent;

 

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		(c)	any claim, express, implied or statutory made by PACIFIC PHARMA, its agents, Affiliates or its sub-distributors, (except to the extent
that such claim has been approved by Territory Regulatory Authority and authorized in writing by SUNEVA) as to the efficacy or safety
of the Product or the use to be made by any purchaser of the Product(s) (except in the case where such loss or damage comes from defects
in the Product(s));

 

		(d)	PACIFIC PHARMA’s or any agent’s negligent acts or omissions or willful misconduct in the use, import, marketing, promotion,
advertising, distribution and sale of the Products, including but not limited to PACIFIC PHARMA’s or agent’s promotional or
advertising materials for the Product(s);

 

		(e)	any statements, claims, representations or warranties made by PACIFIC PHARMA or its agents relating to the Product(s), other than
as authorized in writing by SUNEVA:

 

		(f)	any infringement or claim thereof of any patent, copyright, trademark, service mark, trade name, trade secret or any other property
right of a third party arising from the use by PACIFIC PHARMA or any agent of (i) any symbol, insignia, name or identifying characteristic
other than the SUNEVA’s Marks, (ii) any combination of any SUNEVA Mark with any materials not provided or approved by SUNEVA, (iii) any
modification to the Product(s) not made by SUNEVA, or (iv) any use of the Products not authorized or certified by SUNEVA or by the
SUNEVA technical and sales literature and materials;

 

		(g)	any intentional or negligent violations by PACIFIC PHARMA or any agent of any Applicable Law; and

 

		(h)	any contractual relations between PACIFIC PHARMA or any agent and a third party.

 

		21.2	SUNEVA agrees to indemnify PACIFIC PHARMA against and hold PACIFIC PHARMA and its employees, officers, directors and Affiliates harmless
from any and all loss (except consequential loss, such as, for example, loss of business or of profits), liability, damage, claim, cost
and expenses (including, without limitation, reasonable attorney’s fees and liabilities for personal injury suffered by any person)
arising from or in connection with any:

 

		(a)	breaches of representations, warranties, conditions, covenants or agreements contained in this Agreement;

 

		(b)	any other misrepresentation or breach of this Agreement by SUNEVA or its agent;

 

		(c)	any claim, express, implied or statutory, made by a third party for bodily injury, personal injury, death and property damage caused
by defects in the Product(s) and defective Product(s) information submitted by SUNEVA or its agent;

 

		(d)	any negligent acts or omissions or willful misconduct by SUNEVA or its agent in connection with the manufacturing and exporting of
the Product(s) including but not limited to any technical and sales literature and materials provided by SUNEVA or its agent;

 

		(e)	any statements, claims, representations or warranties made by SUNEVA or its agent relating to the Product(s);

 

		(f)	any intentional or negligent violations by SUNEVA or its agent of any Applicable Law; and

 

		(g)	any contractual relations between SUNEVA or any agent and a third party.

 

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		21.3	If PACIFIC PHARMA or any of its Affiliates or SUNEVA or any of its Affiliates (in each case an “Indemnified Party”) receives
any written claim which it believes is the subject of indemnity hereunder by SUNEVA or PACIFIC PHARMA, as the case may be, (in each case
as “Indemnifying Party”), the Indemnified Party shall, as soon as reasonably practicable after forming such belief, give notice
thereof to the Indemnifying Party, including full particulars of such claim to the extent known to the Indemnified Party; provided, that
the failure to give timely notice to the Indemnifying Party as contemplated hereby shall not release the Indemnifying Party from any liability
to the Indemnified party. The Indemnifying Party shall have the right, by prompt notice to the Indemnified Party, to assume the defense
of such claim with counsel reasonably satisfactory to the Indemnified Party, and at the cost of the Indemnifying Party. If the Indemnifying
Party does not so assume the defense of such claim or, having done so, does not diligently pursue such defense, the Indemnified Party
may assume such defense, with counsel of its choice, but for the account of the Indemnifying Party. If the Indemnifying Party so assumes
such defense, the Indemnified Party may participate therein through counsel of its choice, but the cost of such counsel shall be for the
account of the Indemnified Party.

 

		21.4	The party not assuming the defense of any such claim shall render all reasonable assistance to the party assuming such defense, and
all out-of-pocket costs of such assistance shall be for the account of the Indemnifying Party.

 

		21.5	No such claims shall be settled other than by the party defending the same, and then only with the consent of the other party, which
shall not be unreasonably withheld; provided, that the Indemnified Party shall have no obligation to consent to any settlement of any
such claim which imposes on the Indemnified Party any liability or obligation which cannot be assumed and performed in full by the Indemnifying
party.

 

		21.6	Each of the parties agrees that it will not disclose or use
any Confidential Information of the other party that it may acquire at any time during the term of this Agreement without the prior
written consent of such party and that it shall use all reasonable efforts to prevent unauthorized publication or disclosure by any person
of such Confidential Information including requiring its employees, consultants, sub-distributors or agents to enter into similar confidentiality
agreements in relation to such Confidential Information. PACIFIC PHARMA also acknowledges and agrees that the Product is made in accordance
with highly proprietary trade secrets of SUNEVA and that it shall not disclose such trade secrets and shall prevent disclosure thereof
and further it shall not and shall not permit other to discover by reverse engineering or otherwise any of such trade secrets. PACIFIC
PHARMA will not disclose any information regarding the production, engineering, GMP or GLP standards, to any other party without the
express written consent of SUNEVA.

 

		21.7	The obligations undertaken by each party under this Section shall continue in force for a period of five (5) years following the termination
or expiration of this Agreement except with respect to SUNEVA trade secrets for which the obligations hereunder shall not expire and shall
continue after the termination or expiration of this Agreement regardless of the cause.

 

		21.8	As used in this Agreement, the term “Confidential Information” shall mean all information of disclosed to or observed
by or discovered by both parties, including without limitation customer lists, information that is embodied in the Product(s), or any
information regardless of the form in which it is disclosed that relates to a party’s markets, customers, products, patents, inventions,
procedures, manufacturing, methods, designs, strategies, plans, assets, liabilities, prices, costs, revenues, profits, organization, employees,
agents, resellers or business in general. The parties expressly agree that due to the substantially discounted pricing terms to PACIFIC
PHARMA, it is of the essence that PACIFIC PHARMA not disclose the pricing terms in Schedule C to any third-party. It is further
agreed that any breach of this Section 21 shall be a material breach and cause for termination under Section 22.2. 

 

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		21.9	The obligations contained in this Section 21 do not apply
to any information:

 

		(a)	which was at the time of receipt by a party in the public domain through no fault or act of the receiving party or generally known
in the pharmaceutical manufacturing industry otherwise than by breach of a party’s duty of confidentiality;

 

		(b)	which a party can establish to have been known to it at the time of receipt from the other party and not to have been acquired directly
or indirectly from the other party;

 

		(c)	which was independently developed by the receiving party without the use of or reliance on Confidential Information of the other party;

 

		(d)	which was provided to the receiving party by a third party under no duty of confidentiality; and

 

		(e)	which is required to be disclosed by law but only for the purpose of providing it to such governmental agencies, provided, however,
prompt prior notice thereof shall be given to the disclosing party and disclosure shall be limited to the maximum extent possible.

 

		21.10	If any dispute arises with respect to the unauthorized use of Confidential Information, SUNEVA’s Marks or other intellectual
property of SUNEVA by PACIFIC PHARMA, or with respect to acts or omissions of PACIFIC PHARMA relating to the Products that negatively
impact the reputation of SUNEVA or the Product(s) or the safety of the public, the aggrieved party may seek any available remedy at law
or equity from a court of competent jurisdiction, in addition to its right to arbitration.

 

	22	TERM AND TERMINATION

 

		22.1	This Agreement shall be for an initial term commencing as of the date of this Agreement and continuing until the 10th anniversary
of the date above, unless terminated earlier for cause as defined below. After the initial term, the same Agreement shall be extended
for subsequent one-year extension terms unless terminated by either party with or without cause on ninety (90) days notice.

 

		22.2	This Agreement may be terminated by notice in writing by either party for cause as specified in this Section 22.2 below:

 

		22.2.1	by either party if the other party shall default in the performance of any of its other obligations under this Agreement and such
default shall continue for a period of not less than thirty (30) days after written notice specifying such default shall have been given;
provided, however, that if such default is not capable of being cured within such thirty (30) day period but the party in default initiates
and diligently continues good faith efforts to cure such default, such thirty (30) day period shall be extended to a maximum of ninety
(90) days; provided, further, however, no such cure period shall apply if PACIFIC PHARMA breaches any the provisions of this Section 22;

 

		22.2.2	by SUNEVA upon a Change in Control of PACIFIC PHARMA or if a major part of the assets or all of the assets of PACIFIC PHARMA are disposed
of or acquired by any third party.

 

		22.2.3	by SUNEVA if PACIFIC PHARMA fails to meet the agreed-upon Minimum Milestones as follows: purchases less than 85% of the agreed to
Minimum Milestones for two consecutive years in the first three years post Launch, or purchases less than 80% of the Minimum Milestone
in any future year.

 

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		22.2.4	by SUNEVA upon a violation of the confidentiality provisions at Section 18 or Section 21.8.

 

		22.2.5	by SUNEVA if, in its sole discretion, there is any written and legitimate evidence of PACIFIC PHARMA’s involvement of parallel
importing or counterfeiting whether direct or indirect without action by PACIFIC PHARMA to address this practice.

 

		22.2.6	by SUNEVA if Territory Regulatory Approval is not obtained by PACIFIC PHARMA before June 30, 2013.

 

		22.2.7	by either party;

 

		(a)	if the other Party makes a voluntary petition in bankruptcy, insolvency or similar petition;

 

		(b)	upon an involuntary petition in bankruptcy, insolvency or similar petition is made against the other Party;

 

		(c)	if the other Party becomes insolvent or makes a general assignment for the benefit of creditors, suffers or permits an appointment
of a receiver for its business or assets or is liquidated;

 

		(d)	if the enactment or adoption of any Applicable Law makes it illegal, impossible or impracticable to export, import, market, sell and
distribute the Product(s) to or in the Territory as contemplated in this Agreement, then upon notice provided to the other Party that
specifies the Applicable law and details the reasons why such Applicable Law prevents performance, the prevented-party shall have 90-day
period to provide such performance, after which if such asserted prevention by Applicable Law is not addressed satisfactorily to allow
for performance, either party may terminate this agreement, and neither party shall be responsible for any ensuing damages resulting from
or arising from any such prevented performance. 

 

		22.3	Promptly but no later than, thirty (30) days after Termination, PACIFIC PHARMA shall transfer all Territory Product information, data,
customer lists, customer purchasing history along with a summary of all active commercial, regulatory, and clinical efforts to SUNEVA
or its designee. If such has been transferred to PACIFIC PHARMA, PACIFIC PHARMA will also use its best efforts to transfer the Territory
Regulatory Approval to SUNEVA or its designee. In such event, promptly but no later than, thirty (30) days after Termination, PACIFIC
PHARMA will have transferred all Regulatory responsibilities to SUNEVA or its designee. This will include but not be limited to the originals
of the Territory Regulatory Approval and all related documents in PACIFIC PHARMA’S possession for the Product(s), and a transfer
to SUNEVA or its designee of all rights to seek continued regulatory approvals, extensions, and other related regulatory or governmental
consents or licenses for the Product in the Territory. Without prejudice to the foregoing, upon termination or expiration of this Agreement,
regardless of the cause, PACIFIC PHARMA shall unconditionally and irrevocably agree to any unilateral action by SUNEVA and/or its agent
to request the transfer of the Territory Regulatory Approval or the revocation of same. For the avoidance of doubt, SUNEVA and/or its
agent may perform such unilateral action without the oral or written consent of PACIFIC PHARMA.

 

		22.4	Upon termination or expiration of this Agreement, regardless of the cause: (a) all of PACIFIC PHARMA’s rights granted hereunder
shall immediately cease and PACIFIC PHARMA shall immediately cease and desist from any further use of Technical Information, SUNEVA’s
Marks, or any proprietary information of SUNEVA and immediately cease marketing, promoting or otherwise using the Product(s); (b) PACIFIC
PHARMA shall return to SUNEVA or, at SUNEVA’s direction, destroy any and all language translations of sales and technical literature
and materials in PACIFIC PHARMA’s (and its agents) possession or control; (c) PACIFIC PHARMA shall, at SUNEVA’s written request
(at SUNEVA’s option), return to SUNEVA any Product(s) in its (and its agents) possession at the price paid by PACIFIC PHARMA, freight
paid by PACIFIC PHARMA, provided that, PACIFIC PHARMA may continue to distribute and sale the unreturned Product(s) for a period of six
(6) months after the date of termination or expiration of this Agreement in such a manner as will not interfere with SUNEVA’s goodwill
; (d) PACIFIC PHARMA shall immediately return to SUNEVA all other SUNEVA property, including, but not limited to, all original documents
and copies which contain Technical Information or SUNEVA’s proprietary information; and (e) PACIFIC PHARMA shall immediately remove
from its (and its agent’s) facilities and other premises all signs, billboards and other similar items bearing any of the SUNEVA
Marks or identifying PACIFIC PHARMA (or its agents) as an authorized distributor of SUNEVA or the Product(s). Under no circumstances shall
SUNEVA be liable with respect to orders received by SUNEVA after the termination or expiration of this Agreement.

 

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		22.5	The terms and provisions contained in this Agreement that by their sense and context are intended to survive the performance thereof
by the parties hereto shall so survive the completion of performance and termination of this Agreement, including, without limitation,
provision for indemnification and the making of any and all payments due hereunder and particularly the provisions of Sections 7,
8, 9, 11, 12, 18, 19, 21, 22, 30, 32, and 33 shall survive the expiration or the termination of this Agreement by either Party for any
reason,

 

		23	FORCE MAJEURE

 

		23.1	Neither party shall be liable or be in breach of any provision of this Agreement for any failure or delay on its part to perform any
obligation where such failure or delay has been occasioned by any act of God, war, riot, fire, explosion, flood, government decree, government
order, required to comply with applicable law, sabotage, unavailability of fuel, labor, containers or transportation facilities, accidents
of navigation or breakdown or damage of vessels or other conveyances for air land or sea, other impediments or hindrances to transportation,
government intervention government decree government order, required to comply with applicable law, strikes or other labor disturbances
or any other cause beyond the control of the parties, including, without limitation, acts or threats of violence by governmental or non-governmental
organizations including so called “terrorist” acts. During the period that the performance by one of the parties of its obligations
under this Agreement has been suspended by reason of a Force Majeure Event, the other party may likewise suspend the performance of all
or part of its obligations hereunder, except for the obligation to pay any amounts due and owing hereunder, to the extent that such suspension
is commercially reasonable.

 

		24	INSURANCE

 

		24.1	SUNEVA and PACIFIC PHARMA each shall maintain adequate product liability insurance to cover product liability claims against it, respectively,
as manufacturer of the Products and distributor of the Product(s).

 

		25	NOTICES

 

		25.1	Notices provided under this Agreement to be given or served by either party on the other shall be given in writing and served personally
or by prepaid registered airmail post or by express mail or by means of facsimile to the following respective addresses or to such other
addresses as the parties may hereafter advise each other in writing. It being agreed and understood by the parties that any such notice
shall be deemed given and served the day transmitted by facsimile or a date three (3) days after the date of express mail or mail by courier.

 

		To:	SUNEVA

 

SUNEVA MEDICAL, INC.

5870 Pacific Center Boulevard

San Diego, CA 92121

Attention: Nicholas L. Teti, Jr., CEO

Fax: +1.858.550.9997

 

		To:	PACIFIC PHARMA

 

Seongwon Building

175-2, Hangangro 2-ga, Youngsan-gu

Seoul, Republic of Korea

Attention: Won Joon Ahn, President & CEO

 

		26	EXECUTION OF ALL NECESSARY ADDITIONAL DOCUMENTS

 

Each party agrees that it will forthwith upon the request
of the other party execute and deliver all such instruments and agreements and will take all such other actions as the other party may
reasonably request from time to time in order to effectuate the provision and purposes of this Agreement.

 

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		27	WAIVER

 

The failure of either of the parties to insist upon a strict
performance of any other terms and provisions therein shall not be deemed a waiver of any subsequent breach of default in the terms or
provisions of this Agreement.

 

		28	ASSIGNMENT 

 

		28.1	Due to the exclusive nature of this Agreement and especially the trust and confidence SUNEVA has in PACIFIC PHARMA, PACIFIC PHARMA
shall not assign this Agreement or any right or interest under this Agreement, nor delegate any obligation to be performed under this
Agreement, without the prior written consent of SUNEVA and then only upon approval of the other party by SUNEVA and written acceptance
of such assignment in written form approved by such party. The exception to the above in which PACIFIC PHARMA can assign this agreement
without SUNEVA’s permission is only as part of a substantive change in control of the capital structure or business of PACIFIC PHARMA
by way of merger, sale of stock or assets, reorganization, conversion, restructuring or otherwise.

 

		28.2	In the event of an assignment by PACIFIC PHARMA is permitted hereunder, PACIFIC PHARMA shall not be released from its obligations
hereunder and shall guarantee the full performance by such assignee of such obligations. Any attempted assignment of or delegation by
PACIFIC PHARMA in contravention of this provision shall be void and ineffective and shall be deemed to be a material breach hereof.

 

		28.3	SUNEVA may assign this Agreement or any obligations or rights hereunder without the prior written consent of PACIFIC PHARMA. Moreover,
Suneva agrees that in the event of any such assignment, this Agreement will remain binding on the assignee under the terms then in effect.

 

 

		29	ENTIRE AGREEMENT - AMENDMENTS

 

This Agreement constitutes the entire agreement between the
Parties concerning the subject matter hereof, and supersedes and replaces all prior or contemporaneous understandings or agreements, written
or oral, regarding such subject matter. No amendment to or modification of this Agreement, or any waiver of any term or condition of this
Agreement will be binding unless in writing and signed by a duly authorized representative of both Parties.

 

		30	GOVERNING LAW; VENUE; LANGUAGE

 

		30.1	This Agreement has been made, executed and delivered in California, in which state the offices of SUNEVA are located. Accordingly,
the Parties invoke the laws of California regarding the protection of their rights and enforcement of their obligations hereunder and
they mutually stipulate and agree that this Agreement is in all respects (including, but not limited to, all matters of interpretation,
validity, performance and the consequences of breach) to be exclusively construed, governed and enforced in accordance with the internal
laws (excluding all conflict of laws rules) of California and any applicable federal laws of the United States of America, as from time
to time amended and in effect. The Parties agree that the United Nations Convention on Contracts for the International Sale of Goods shall
not apply in any respect to this Agreement or the Parties.

 

		30.2	Language. The official language of this Agreement is English. All contract interpretations, notices, and dispute resolutions shall
be in English. Any amendments to this Agreement shall be in English. Translations of any of these documents shall not be construed as
official or original versions of the documents, or otherwise referred to in the interpretation or construction of the intentions of the
Parties hereto.

 

	31	TAXES

 

Any taxes, duties, fees, charges, VAT, assessments or withholding
of any nature levied by any governmental authority in connection with Territory Regulatory Approval, license fees or importation, marketing,
distribution or sale of the Product in the Territory, whether levied against PACIFIC PARMA or SUNEVA, shall be solely the responsibility
of and paid for by PACIFIC PARMA except for any U.S. tax on the income of SUNEVA.

 

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		32	SEVERABILITY

 

If any term or provision of this Agreement shall be held
invalid or unenforceable, the remaining terms hereof shall not be affected, but shall be valid and enforced to the fullest extent permitted
by law.

 

	33	ARBITRATION

 

		33.1	Except with respect to disputes involving SUNEVA’s rights in and/or breaches of SUNEVA’s Confidential Information and/or
intellectual property rights and as provided in Section 18 [Confidentiality Section] above, any dispute, claim or controversy which shall
arise out of or in relation to this Agreement, or the breach thereof, shall be finally settled by binding arbitration at San Diego, California,
USA, in accordance with the International Arbitration Rules of the American Arbitration Association (“AAA”). Any such arbitration
shall be conducted by a single arbitrator appointed by mutual agreement of the parties or, failing such agreement, in accordance with
the AAA rules. The arbitration shall be conducted in the English language. Notwithstanding any contrary provisions in the AAA rules, each
party shall bear its own costs and expenses of the arbitration and one-half (1/2) of the fees and costs for the arbitrator unless the
arbitrator determines the fees and costs should be borne by one of the parties. The arbitrator may not award or assess punitive damages
against SUNEVA.

 

		33.2	Notwithstanding the foregoing or the then-current specified Commercial Arbitration Rules, the following shall apply with respect to
the arbitration proceeding: (i) the existence, subject, evidence, proceedings, and ruling resulting from the arbitration proceedings
shall be deemed confidential information, and shall not be disclosed by either Party, their representatives, or the arbitrator (except:
(a) to the professional advisers of SUNEVA and PACIFIC PHARMA; (b) in connection with a public offering of securities by SUNEVA
or PACIFIC PHARMA; (c) as ordered by any court of competent jurisdiction; or (d) as required to comply with any applicable governmental
statute or regulation) and (ii) the arbitrator shall be required to prepare written findings of fact. Notwithstanding the foregoing,
either Party may apply to the court(s) listed below at 33.3 for a temporary restraining order, preliminary injunction or other equitable
relief, as necessary, without breach of this arbitration agreement and without abridgement of the powers of the arbitrator.

 

		33.3	For any disputes not subject to Sections 33.1 and 33.2 above, each of the parties hereto irrevocably submits to the exclusive jurisdiction
of the courts of the State of California located in the County of San Diego and the United States District Court for the Southern District
of California for the purpose of any suit, action, proceeding or judgment relating to or arising out of this Agreement and the transactions
contemplated hereby. Service of process in connection with any such suit, action or proceeding may be served on each party hereto anywhere
in the world by the same methods as are specified for the giving of notices under this Agreement. Each of the parties hereto (i) irrevocably
consents to the jurisdiction of any such court in any such suit, action or proceeding and to the laying of venue in such court and (ii) irrevocably
waives, and agrees not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that
it is not subject personally to the jurisdiction of the above named court, that its property is exempt or immune from attachment or execution
(except as protected by applicable law), that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the
suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court, and
hereby waives and agrees not to seek any review by any court of any other jurisdiction which may be called upon to grant an enforcement
of the judgment of any such court. Each of the parties hereto agrees that its, his or her submission to jurisdiction and its, his or her
consent to service of process by mail is made for the express benefit of the other parties hereto. Final judgment against any party hereto
in any such action, suit or proceeding may be enforced in other jurisdictions by suit, action or proceeding on the judgment, or in any
other manner provided by or pursuant to the laws of such other jurisdiction.

 

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	34	GENERAL PROVISIONS

 

		34.1	Execution. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original hereunder. Each
Party agrees to be bound by its own facsimile or telecopy signature, and accepts the facsimile or telecopy signature of the other Party
hereto.

 

		34.2	Rule of Construction. Both parties have been represented by counsel in the negotiation and drafting of this Agreement, therefore,
no rule of construction requiring interpretation against the draftsman hereof shall apply in the interpretation of this Agreement.

 

		34.3	Cooperation. Both parties agree to cooperate with each other and to execute any and all further and necessary documents as may be
reasonably requested by any party hereto in order to implement and carry out the purpose and intent of this Agreement.

 

		34.4	Partial Invalidity. If any term or provision of this Agreement shall be found to be illegal or unenforceable, then notwithstanding
such illegality or unenforceability, this Agreement shall remain in full force and effect and such terms or provision shall be deemed
to be deleted.

 

		34.5	No-Waiver. No term of provision of this Agreement shall be deemed waived and no breach or default shall be deemed waived and no breach
or default shall be deemed excused unless such waiver or consent shall be in writing and signed by the party claimed to have waived or
consented. No consent by any party to, or waiver of, a breach or default by the other, whether express or implied, shall constitute a
consent to, waiver of or excuse for any different or subsequent breach or default.

 

		34.6	Headings. Descriptive headings in this Agreement ware for convenience only and shall not affect the construction of this Agreement.

 

	35	ACKNOWLEDGEMENT, REPRESENTATIONS AND COVENANTS OF PACIFIC
PHARMA

 

		35.1	PACIFIC PHARMA hereby agree as follows:

 

		(a)	PACIFIC PHARMA will be properly capitalized at all times during the Term.

 

		(b)	PACIFIC PHARMA will use best efforts to obtain Territory Regulatory Approval on or before December 3, 2012 and will, in any event,
obtain Territory Regulatory Approval before June 30, 2013.

 

		(c)	PACIFIC PHARMA agrees that in connection with this Agreement they will have access to important confidential business and technical information
of Suneva and therefore PACIFIC PHARMA shall, and shall require its employees, agents, officers, directors, advisors to comply with the
following covenants:

 

		i.	they shall not and they shall not permit any company they are associated with or affiliated with to use such Confidential Information
in any manner, and

 

		ii.	they
shall not and they shall not permit any company they are associated with or affiliated with to directly or indirectly compete with Suneva
or its Products by selling any injectable dermal filler with non-hyaluronic acid based microspheres or any material with a label claimed
duration of two (2) years or longer in the Territory. For avoidance of doubt, this provision does not apply to any product under internal
development by PACIFIC PHARMA as of the Effective Date.

                                                                                

 

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IN WITNESS WHEREOF, this Agreement has been executed by the parties on the date first above written.

 

	 	SUNEVA MEDICAL, INC.
	 	 	 
	 	By:	/s/ Nicholas L. Teti, Jr.
	 	Name:	Nicholas L. Teti, Jr.
	 	Title:	Chairman and Chief Executive Officer
	 	 	 
	 	PACIFIC PHARMA CORPORATION
	 	 	 
	 	By:	/s/ Won Joon Ahn
	 	Name:	Won Joon Ahn
	 	Title:	CEO

 

 

24

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