Document:

Exhibit 10.1

 

SOFTARE LICENSE AND AGENCY
AGREEMENT

 

THIS SOFTWARE
LICENSE AND AGENCY AGREEMENT (the "Agreement") is entered into on this 18th day of February, 2016, by and between MYECHECK,
INC., a Wyoming corporation ("MyECheck") hereinafter referred to as ‘Licensor”, whose principal place of
business is 2600 East Bidwell St., Suite 190, Folsom, California, 95630, USA, and Centric Gateway Limited, a company duly incorporated
under the laws of the Federal Republic of Nigeria, with registration number RC1003424 (“Licensee”), and having its
principal place of business at 15 Olusesan Adetula Street Surulere Lagos, MyECheck shall
be referred to as the Licensor while Centric Gateway Ltd. as Licensee.

Individually referred to as “Party”
and collectively referred to as “Parties”

 

WHEREAS, MyECheck has acquired
Seergate, LTD, the owner of proprietary rights to a social banking solution (the “Processing Solution”) and licenses
the use of the Processing Solution to customers throughout the world; and

 

WHEREAS, the
Licensee is desirous of selling and servicing the Processing Solution to customers in Nigeria
and other African countries that the financial institutions may extend the Processing Solution to
as agreed to and substantiated in writing by the Parties (the “Territory”); 

 

WHEREAS, this Agreement
supersedes the MOU and Confidentiality Agreement. Where any conflicts exist this Agreement shall control.

 

NOW THEREFORE, for good
and valuable consideration, the sufficiency of which is recognized by the Parties, MyECheck and Licensee agree to the following
terms:

 

		1.	DEFINITIONS. The following definitions apply throughout this Agreement:

 

		1.1	“MOU” means the memorandum of understanding dated July 25, 2013 between Seergate Incorporated
and Centric Gateway Limited.

 

		1.2	Confidentiality Agreement” means the mutual confidentiality agreement between MyECheck, Inc.
and Licensee dated May 4th, 2013.

 

		1.3	"Documentation" means MyECheck's published user manuals relating to the Processing Solution
Software as of the Effective Date or as it relates to any Modification or Major Release as of the date of delivery of each Modification
or Major Release, as applicable.

 

		1.4	"Error" means any failure of the Software to operate in conformance with the Documentation
in any material respect.

 

		1.5	"Maintenance" shall mean the services provided by MyECheck to the Licensee as set forth
in Section 7 and Exhibit B attached hereto.

 

		1.6	"Modification" means any revisions, enhancements, bug fixes, patches, Error resolutions
and all other changes to the Software required to ensure that the Software operates in conformance with the Documentation and Specifications.

 

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		1.7	“Customer” means the financial institution, or service provider with access to financial
institutions systems, or other entities, networks with similar core banking functions executing a sub- license agreement with the
Licensee to integrate and use the Processing Solution for the benefit of their end users or depositors.

 

		1.8	"Order" means the form, substantially equivalent to Exhibit D to this Agreement, to purchase
from the Licensee a right to use or a sublicense of the Software under this Agreement.

 

		1.9	"Production" means that the Software is integrated into live networks, deposit systems
and portals such that Customers’ end users have access to and may use the Processing Solution functionality to move money
electronically per the Documentation and Specifications.

 

		1.10	"Professional Services Agreement" means the agreement attached hereto as Exhibit C and
all written statements of work signed by the Licensee and related thereto.

 

		1.11	"Software" means the Software Modules listed in Exhibit A and any Major Releases, Modifications,
interim releases, bug fixes and patches applicable to such Software Modules.

 

		1.12	"Source Code" means (i) the Software fully documented in its source code (i.e., human
readable) form; (ii) a compiler, similar computer program or any other software which is necessary to convert the source code form
into the object code form of the Software; and (iii) runtime software necessary to execute the source code form of the Software,
including but not limited to interpreters and templates. Also for the purposes of this Agreement, "Commentary" shall
include explanations, flow charts, schematics, algorithms, subroutine descriptions, class and object descriptions, memory and overlay
maps, statements of principles of operations, architecture standards, data flow descriptions, class, base-class and sub-class descriptions,
data structures and control logic of the Software and any other documentation of the source code form of the Software, all in sufficient
detail to enable a trained programmer through study of such materials to maintain and/or modify the Software without undue experimentation.

 

2. LICENSE GRANT.

MyECheck hereby warrants that it is the sole
owner of the Software and all legal rights associated therewith, including copyright and that such rights hereby give rise to this
Agreement as well as powers to assign rights to the Licensee.

Subject to the terms and conditions
of this Agreement, including Exhibit A hereto, MyECheck
hereby grants to the Licensee (and its successors and assigns as permitted herein) a limited, exclusive (subject to Exhibit
E), non-transferable (except as otherwise expressly set forth herein), sub-licensable license for
the purpose of selling a right to use the Processing Solution to Licensee’s Customers in the Territory. Any sub-license granted
by Licensee, shall allow Licensee’s Customers, hereby also bound by the terms herein, to use, install and maintain the Software
(in object code form only and only in accordance with the Documentation) and the Documentation for Customer’s business use
in accordance with the provisions of Section 3, and to make as many backup (solely for disaster testing and recovery purposes)
copies as may be reasonably necessary, provided that the Licensee shall keep a record of each such backup copy and the location
of its storage as provided by the Licensee’s Customers, and shall provide any and all such records to MyECheck upon request.
The Licensee must reproduce and include any and all copyright, proprietary and any other notices that appear on the original Software
and any media therefore on any copies made by the Licensee. The Licensee may exercise its rights hereunder through third party
subcontractors for the sole purpose of assisting Licensee in its permitted use of the Software; provided, however, that each such
third party subcontractor (i) must agree in a legally binding writing, to which MyECheck is a named third party beneficiary, to
be bound by terms and conditions at least as protective of and beneficial to MyECheck as those set forth herein, a copy of such
agreement to be promptly provided to, and mutually agreed to, by MyECheck, and (ii) must not be a competitor of MyECheck.

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3. RESTRICTIONS ON USE.
Licensee and their Customers acknowledge that the Software, its structure, organization and Source Code, and the Documentation
are the property and constitute valuable trade secrets of MyECheck and its suppliers. The Licensee agrees not to: (a) decompile
or disassemble the Software, separate the Software into its component parts, or in any way attempt to reconstruct or discover any
source code or algorithms of the Software by any means whatsoever; (b) remove any product identification, trademark, copyright,
confidentiality, proprietary or other notice contained on or within the Software; (c) modify or create any derivative works from
the Software or any part thereof, except to the extent that the Software provides for user-modifiable components (d) except as
otherwise permitted herein, sell, sublicense, lease, rent, loan, assign, convey or otherwise transfer the Software or any component
thereof; (e) otherwise copy or use the Software for any purpose or in any manner not expressly permitted in this Agreement; or
(f) knowingly permit or encourage any third party to do any of the foregoing. All assistance requested by the Licensee for integration
with existing or proposed Licensee systems or software shall be provided by MyECheck in accordance with Section 7. All rights in
and to the Software and Documentation not expressly granted to the Licensee in this Agreement are reserved by MyECheck and its
suppliers.

 

4. OBLIGATIONS OF THE PARTIES.
Each Party hereby assures the other they will diligently, and in good faith, do everything within their power to deliver on the
obligations hereunder with the highest degree of professionalism and consistent with world class companies in the financial services
industry.

 

4.1Obligations of the
Licensee

4.1.1
Provide all necessary and appropriate marketing assets to introduce the Processing Solution to the Territory.

4.1.2
Provide all sales resources necessary to close the sale, including, but not limited to, contract negotiations, value propositions,
presentations, and in person meetings.

4.1.3
Provide the resources, whether human, capital or both, to integrate the Processing Solution into customer infrastructures, including,
but not limited to, banks, core deposit systems, interbank switches, financial networks or other companies that wish to offer the
services to their end users.

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4.1.4
Provide First Line support and maintenance to Licensee’s Customers as described in Exhibit B.

4.1.5
Assure that the Customer has adequate resources to operate the Processing Solution on a daily basis.

 

4.2Obligations of MyECheck

4.2.1.
Provide training and technical assistance to the Licensee to assist with integration and deployment into Customer environments
in accordance with the Professional Services Agreement.

4.2.2
Provide operational training to the Licensee and their customers necessary to run the Processing Solution on a daily basis in accordance
with the Professional Services Agreement.

4.2.3
Provide Second Line support and maintenance services directly to the Licensee or their Customers as described in Exhibit B.

4.2.4
Provide bug fix and upgrades to include new features added by MyECheck and provide training to the Licensee on new features of
the Processing Solution.

4.2.5
To support Licensee in the Territory if it becomes necessary as agreed by the Parties.

 

5. ORDERING AND DELIVERY.
The Licensee shall cause their Customer to sign an Order for the Processing Solution. An Order is binding on both Parties when
signed by authorized representatives of the Licensee and their Customer. Each Order shall include the following information: (a)
the Software licensed or to which Support and Maintenance shall apply, (b) the applicable fees, (c) the project start date, and
(d) the term of the sub-license. No additional or different terms in any Order or similar document shall modify the terms of this
Agreement. The Licensee shall provide copy of any signed Order to MyECheck within five (5) days of execution.

 

6. LICENSE
FEES AND PAYMENT. The Licensee’s Customers shall pay the license and transaction fees for the Software set forth in Exhibit
A (the "License Fees"). All fees hereunder exclude all applicable sales, use, value-added, property and other taxes,
including duties and similar mandatory payments, and Licensee will be responsible for collection of all such taxes (other than
taxes based on MyECheck's net income), and any related penalties and interest, arising from the payment of such fees, the delivery
or license of the Software, or the provision of any services to the Licensee. The Licensee shall be responsible for: a) the invoicing
and collection of all fees; b) providing MyECheck on a monthly statement of all fees collected; and, c) sending a remittance, in
U.S. dollars, to MyECheck for its share of the fees, less expenses that have been mutually agreed to by the Parties. Such remittance
to be received by MyECheck no later than ten days from the date the fees are collected subject to the availability of US dollars
in the Territory. The Licensee will make all payments of amounts due under this Agreement to MyECheck free and clear of, and without
reduction for, any withholding taxes. If the Licensee is legally required to make any such withholding from any payment due to
MyECheck under this Agreement, the sum payable by the Licensee upon which such withholding is based shall be increased to the extent
necessary to ensure that, after such withholding, MyECheck receives an amount equal to the amount MyECheck would have received
in the absence of such withholding.. MyECheck reserves the right to charge interest on any overdue amounts at a rate of one and
one-half percent (1.5%) per month or the maximum rate permitted by applicable law, whichever is less, from the due date until paid
plus reasonable costs incurred in collection (including reasonable attorneys' fees).This right shall be exercisable only
upon established cases of failure, negligence, omission to act or an infraction on the part of the Licensee.

 

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At its option,
MyECheck may require that Customers of Licensee remit all fees due under this Agreement to a financial account (“Account”)
that is jointly held by MyECheck and Licensee. Each party shall have online banking access and wire (or similar) capability to
the designated Account. Under such an arrangement, all user fees collected from Customers will be deposited by Customer directly
into the designated Account agreed to by the parties.
The parties shall be able to withdraw their fees per the Billing Terms defined in Exhibit A. Any withdrawals from the designated
Account other than those allowed for in Exhibit A shall require the approval of both Parties. Periodic
statements concerning the designated Account shall be provided to both Parties as defined in Exhibit A.

 

7. OWNERSHIP OF DERIVATIVE
WORKS.

 

Derivative Works. Any and
all derivative works to the Software which are created pursuant to this Agreement shall be owned by MyECheck, but the Licensee
shall have the same rights and licenses to such derivative works as the Licensee has to the Software.

 

8. MAINTENANCE.

 

8.1
Maintenance Terms and fees. Maintenance provided by MyECheck shall be pursuant to MyECheck's standard maintenance terms, a copy
of which is attached hereto as Exhibit B. And, if applicable, the Licensee shall collect the Maintenance Fee set forth in Exhibit
A from Customers and remit such sums to MyECheck.

 

9. SERVICES. Services (other
than support and maintenance services provided pursuant to Exhibit B), if any, to be provided to the Licensee’s Customers
by MyECheck shall be under the terms of Exhibit C attached hereto ("Services Exhibit"). And, if applicable, the Licensee
shall collect fees for any Service set forth in Exhibit C from Customers and remit such sums to MyECheck.

 

10. SOFTWARE WARRANTY.

 

10.1 (a) MyECheck
warrants that it has exclusive ownership of intellectual property to the exclusion of any other in terms of copyrights and all
other forms of legal and other intellectual property rights and shall take full responsibility for any and all forms of contention
challenging this claim and shall indemnify and continue to indemnify the Licensee and third parties relying on this information
on all type of interaction with the Licensee.

 

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10.1 (b) MyECheck
warrants to the Licensee’s Customer, and not to subsequent end users, of the Software product that six (6) months from the
date the Software is first used in Production until the expiration of the sub-license purchased from the Licensee
and as renewed from time to time, the Software shall substantially conform to the specification for the Software Documentation
as such may change from time to time. MyECheck does not warrant (i) that the Software is error free, (ii) that Customer will be
able to operate the Software without problems or interruptions or (iii) that the Software will be free of vulnerability to intrusion
or attack. Except for the limited warranty set forth in this section, the Software is provided “AS IS.”

 

10.2
Disclaimer. EXCEPT FOR THE LIMITED REPRESENTATIONS, WARRANTIES, AND COVENANTS EXPRESSLY STATED in 10.1 and 10.2 HEREIN, THE
SOFTWARE, DOCUMENTATION AND MAINTENANCE, AS WELL AS ALL SERVICES, ARE PROVIDED "AS IS," AND MYECHECK AND ITS SUPPLIERS
HEREBY EXPRESSLY DISCLAIM ANY AND ALL WARRANTIES OF ANY KIND OR NATURE, WHETHER EXPRESS, IMPLIED OR STATUTORY.
THE LICENSEE ACKNOWLEDGES THAT MYECHECK IS NOT RESPONSIBLE FOR AND WILL HAVE NO LIABILITY FOR
HARDWARE, SOFTWARE OR OTHER ITEMS OR ANY SERVICES PROVIDED BY ANY PERSON OR ENTITY OTHER THAN MYECHECK OR ITS EMPLOYEES, AGENTS
OR CONTRACTORS OR FOR NETWORK FAILURE. THE LICENSEE FURTHER ACKNOWLEDGES THAT IT HAS RELIED ON NO WARRANTIES OTHER THAN THE EXPRESS
WARRANTIES SET FORTH IN THIS AGREEMENT.

 

11. CONFIDENTIALITY. In
the course of performing this Agreement, the Parties may disclose to each other Confidential Information. "Confidential Information"
shall mean any and all non-public technical and non-technical information provided by either party to the other, including but
not limited to (i) patent and patent applications; (ii) trade secrets; and (iii) proprietary information including, but not limited
to, ideas, sketches, techniques, drawings, works of authorship, models, inventions, know-how, processes, apparatuses, equipment,
algorithms, software programs, software source documents, and formulae related to the current, future and proposed products and
services of each of the parties, and including, without limitation, their respective information concerning research, experimental
work, development, design details and specifications, engineering, financial information, procurement requirements, purchasing,
manufacturing, customer lists, investors, employees, business and contractual relationships, business forecasts, sales, merchandising,
marketing plans, contact details and other information the disclosing Party provides regarding third parties. All Confidential
Information shall remain the sole property of the disclosing Party, and the receiving Party shall have no interest in or rights
with respect thereto except as expressly set forth in this Agreement. Each Party agrees: (i) not to use any Confidential Information
of the other Party for any purpose except in the performance of its obligations under this Agreement or as otherwise expressly
permitted hereunder; (ii) to disclose such Confidential Information only to employees (or third party subcontractors permitted
under this Agreement) who have a need to know such Confidential Information for purposes of this Agreement and who are under a
duty of confidentiality no less restrictive than that set forth herein; (iii) to protect such Confidential Information from unauthorized
use, access or disclosure in the same manner that it protects its own similar Confidential Information, but in no event with less
care than a reasonably prudent business would exercise and (iv) to promptly notify the other Party of any actual or potential unauthorized
access to or use of Confidential Information. The foregoing restrictions on disclosure shall not apply with respect to any information
which: (a) was or becomes generally known or publicly available through no act or failure to act on the part of the receiving Party;
(b) is known by the receiving Party without restrictions on disclosure at the time of receiving such information as evidenced by
its records; (c) is rightfully furnished to the receiving Party without restrictions on disclosure by a third party without a breach
of such third party's obligations of confidentiality; or (d) is required by law to be disclosed by the receiving Party, provided
that the receiving Party: (x) gives the disclosing Party prompt written notice of such requirement prior to such disclosure; (y)
provides assistance in obtaining an order protecting Confidential Information from disclosure; and (z) discloses information only
to the extent required by law. The Licensee further agrees not to disclose to any third party any performance information (including,
without limitation, benchmarks) relating to the Software except as otherwise expressly contemplated herein. MyECheck further agrees
not to disclose to any third party confidential information concerning the Licensee’s Customers, and agrees not to attempt
to solicit business or market to the Licensee’s Customers outside of this Agreement. This Section 11 will survive any termination
of the Agreement for a period of three (3) years with respect to non-technical information and in perpetuity with respect to technical
information, including the Software, the Documentation and any code.

 

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12. MYECHECK INDEMNITY.
MyECheck agrees to indemnify, defend and hold harmless Licensee, its officers, directors, employees and agents from and against
all damages and costs (including reasonable attorneys' fees) finally awarded against the Licensee (or finally settled upon) and
arising from or relating to:

 

(i) any claim brought against
the Licensee by a third party alleging that the Software directly infringes any patent, copyright, trademark or other intellectual
property right or misappropriates any trade secret (recognized as such under the Uniform Trade Secrets Act). The Parties acknowledge
and agree that MyECheck's obligations under this item (i) of this Section 12 are conditioned upon the Licensee providing MyECheck:
(a) prompt written notice of the existence of such claim, suit, action or proceeding (each a "claim"); provided that
a failure of the Licensee to promptly notify MyECheck shall not relieve MyECheck of liability hereunder except to the extent that
MyECheck 's defenses to such claim are materially impaired by such failure to promptly notify; (b) sole control over the defense
or settlement of such claim, it being agreed that MyECheck shall not enter into any settlement imposing any liability or obligation
on the Licensee without Licensee's the prior written consent; and (c) assistance at MyECheck's request and sole expense, to the
extent reasonably necessary for the defense or settlement of such claim. If any claim that MyECheck is obligated to defend has
occurred or, in MyECheck's opinion, is likely to occur, MyECheck may, at its option and expense either (1) obtain for the Licensee
the right to continue to use the applicable Software, (2) replace or modify the Software so it becomes non-infringing, without
materially adversely affecting the Software's specified functionality, or (3) if (1) or (2) are not readily available after using
reasonable commercial efforts or, if neither of the foregoing options is commercially reasonable, refund all fees paid by Customer
and terminate this Agreement; provided that termination pursuant to this subsection 12(ii)(3) shall be deemed a termination by
the Licensee for cause. Notwithstanding the foregoing, MyECheck shall not indemnify, defend or hold harmless Licensee for any claims
solely based on: (a) any Licensee or third party intellectual property or software incorporated in or combined with the Software
where in the absence of such incorporated or combined item, there would not have been infringement, but excluding any third party
software or intellectual property incorporated into the Software at MyECheck's discretion; (b) Software which has been altered
or modified by Licensee, by any third party or by MyECheck at the request of the Licensee (where MyECheck had no discretion as
to the implementation of modifications to the Software or Documentation directed by Licensee), where in the absence of such alteration
or modification the Software would not be infringing; or (c) use of any version of the Software with respect to which MyECheck
has made available a non-infringing updated, revised or repaired subsequent version or other applicable update, patch or fix; (ii)
the use of MyECheck's premises by the Licensee employees pursuant to this Agreement; or (iii) any claim of personal injury or tangible
personal property damage (excluding data) of whatsoever nature or kind arising, in whole or in part, out of, as a result of, or
in connection with the gross negligent or willful misconduct of MyECheck, its employees, subcontractors or agents. Furthermore,
MyECheck agrees to maintain commercial general liability insurance of at least $2.5 million, covering MyECheck's obligations contained
herein on a claims-made basis with coverage for at least one year from the date of completion of the services. The provisions of
this Section 12 herein shall survive for a period of one year following the earlier of (a) completion of the Maintenance services
or (b) termination of this Agreement.

 

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13. Licensee INDEMNITY.
Licensee agrees to indemnify, defend and hold harmless MyECheck from and against all damages and costs (including reasonable attorneys'
fees) finally awarded against MyECheck (or finally settled upon) and arising from: (i) any claim of personal injury or tangible
personal property damage (excluding data) of whatsoever nature or kind arising, in whole or in part, out of, as a result of, or
in connection with the gross negligent or willful misconduct of the Licensee, its employees, subcontractors or agents; (ii) any
claim brought against MyECheck by a third party alleging that the Licensee Materials (as defined in Exhibit C) directly infringe
any U.S. copyright or trademark or misappropriate any trade secret (recognized as such under the Uniform Trade Secrets Act) in
existence as of the Effective Date; or (iii) any claim brought against MyECheck by a third party arising from or relating to any
modification of the Software by the Licensee or any use of the Software other than as permitted under this Agreement. The parties
acknowledge and agree that the Licensee's obligations under this section are conditioned upon MyECheck providing the Licensee:
(1) prompt written notice of the existence of such claim, suit, action or proceeding (each a "claim"); (2) sole control
over the defense or settlement of such claim; and (3) assistance at the Licensee's request to the extent reasonably necessary for
the defense of such claim. The foregoing sets forth Licensee's sole and exclusive obligation and MyECheck's sole and exclusive
remedy for any claim of intellectual property infringement or misappropriation relating to the Licensee Materials. Notwithstanding
the foregoing, Licensee need not indemnify, defend nor hold harmless MyECheck for any claims arising from: (a) any MyECheck intellectual
property or software incorporated in or combined with the Licensee Materials where in the absence of such incorporated or combined
item, there would not have been infringement; (b) Licensee Materials which have been altered or modified by MyECheck (other than
in response to a request by Licensee), where in the absence of such alteration or modification the Licensee Materials would not
be infringing; (c) use of an any version of the Licensee Materials for which Licensee has made available an updated, revised or
repaired subsequent version; or (d) the gross negligence or willful misconduct of MyECheck or any of its agents, subcontractors
or employees. Upon notice of any claim of infringement or upon reasonable belief of the likelihood of such a claim, Licensee shall
have the right, at its option, to: (x) obtain the rights to continued use of the Licensee Materials; (y) substitute other suitable,
functionally-equivalent, non-infringing materials; or (z) replace or modify the Licensee Materials or their design so that they
are no longer infringing. The provisions of this Section 13 herein shall survive for a period of one year following the earlier
of (a) completion of the Maintenance services or (b) termination of this Agreement.

 

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14. Limitation of Liability.
EXCEPT FOR ANY BREACH OF SECTION 10 OR WITH REGARD TO ANY DUTY OR OBLIGATION REQUIRED PURSUANT TO SECTION 12 OR 13 OR WITH REGARD
TO ANY ACT OF GROSS NEGLIGENCE OR WILLFUL MISCONDUCT, AND TO THE EXTENT NOT PROHIBITED BY APPLICABLE LAW, NEITHER PARTY HERETO
NOR ITS SUPPLIERS SHALL BE LIABLE FOR ANY LOSS OF USE OR GOODWILL, INTERRUPTION OF BUSINESS, LOSS OR INACCURACY OF BUSINESS INFORMATION,
LOST PROFITS, COST OF PROCUREMENT OF SUBSTITUTE GOODS OR SERVICES, OR ANY INDIRECT, SPECIAL, INCIDENTAL, EXEMPLARY OR CONSEQUENTIAL
DAMAGES OF ANY KIND REGARDLESS OF THE FORM OF ACTION WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE), STRICT PRODUCT LIABILITY,
OR OTHERWISE, EVEN IF IT OR ITS SUPPLIERS HAVE BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. EXCEPT FOR ANY BREACH OF SECTION
3 OR 10 OR WITH REGARD TO ANY DUTY OR OBLIGATION REQUIRED PURSUANT TO SECTION 12 OR 13 OR WITH REGARD TO ANY FEE PAYMENT OBLIGATIONS
OR ACT OF GROSS NEGLIGENCE, BAD FAITH OR WILLFUL MISCONDUCT, IN NO EVENT SHALL EITHER PARTY'S LIABILITY TO THE OTHER ARISING FROM
OR RELATING TO THIS AGREEMENT EXCEED THE AMOUNT OF LICENSE FEES RECEIVED BY MYECHECK UNDER THIS AGREEMENT. THE EXISTENCE OF ONE
OR MORE CLAIMS WILL NOT ENLARGE THIS LIMIT. THE PARTIES ACKNOWLEDGE AND AGREE THAT THIS SECTION IS AN ESSENTIAL ELEMENT OF THE
AGREEMENT AND THAT IN ITS ABSENCE, THE ECONOMIC TERMS OF THIS AGREEMENT WOULD BE SUBSTANTIALLY DIFFERENT

 

15. TERM AND TERMINATION.

 

15.1
Term. This Agreement shall remain in effect for five (5) years from the date of execution unless terminated earlier under the provisions
of this Agreement (“Term”). Unless otherwise terminated prior to the Term, this Agreement will automatically renew
for additional one year periods unless written notice of intent to terminate the Agreement is sent by either Party to the other
Party 60 (sixty) days prior to the applicable termination date.

 

15.2
Termination for Cause. Either Party may terminate this Agreement if the other Party fails to cure any breach of this Agreement
within thirty (30) days after receiving written notice of the occurrence of such breach (or immediately in the case of a material
breach of a material term within Section 3 or Section 11).

 

15.3
Termination for Convenience. Either Party may terminate this Agreement without cause by giving the other Party ninety (90) days
prior notice. The terminating Party shall help ensure an orderly transition of any functions, documentation, contacts and any other
information necessary for the non-terminating Party to provide uninterrupted service to any Customers under a current Sub-license.
The Party terminating for convenience shall receive no further fees or revenue share from existing or future Sub-license Customers.

 

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15.4
Effects of Termination. Upon termination of this Agreement for any reason, any amounts owed under this Agreement will be immediately
due and payable, all rights and licenses granted under this Agreement will immediately cease to exist, and the Licensee must promptly
discontinue all use of the Software and Documentation. Upon termination, the Licensee shall erase all copies of the Software and
Documentation from the Licensee's computers, return to MyECheck or destroy all copies of the Software and Documentation on tangible
media in the Licensee's possession or control and certify in writing to MyECheck that it has fully complied with these requirements.
Provided that the above provision will not affect Sub-licenses validly granted or sold by the Licensee to Customers and running
as at the time of the termination until such sub-licenses expire as previously agreed with the Customer. 

 

15.4
Survival. Sections 1, 3, 6, 7, 10, 11, 12, 13, 14 and 15 shall survive any termination hereof.

 

16. GENERAL.

 

16.1
Independent Contractors. The relationship of MyECheck and the Licensee established herein is that of independent contractors, and
nothing contained in this Agreement shall be construed to: (i) give either Party the power to direct and control the day-to-day
activities of the other, (ii) constitute the Parties as partners, joint ventures’, co-owners or otherwise as participants
in a joint or common undertaking, or (iii) allow either Party to create or assume any obligation on behalf of the other Party for
any purpose whatsoever.

 

16.2
Compliance with Laws. Each party will comply with all applicable export and import control laws and regulations in its use of the
Software and will not export or re-export the Software without all required United States and other government licenses. The Licensee
hereby agrees to be bound by the U.S. Foreign Corrupt Practices Act and all laws of the U.S. pertaining to foreign asset controls.

 

16.3
Press Release. The Parties may issue a mutually agreed upon press release regarding the Licensee's engagement of MyECheck and use
of the Software pursuant to this Agreement. MyECheck may develop and, with the Licensee's prior written consent (such consent not
to be unreasonably withheld or delayed) publish a case study or issue a press release, highlighting the main benefits provided
by MyECheck and the Software, when a given Customer’s first site goes into Production.

 

16.4
Notices. Any notice required or permitted hereunder shall be in writing and delivered in person, electronically or by means evidenced
by a delivery receipt to the address specified below and will be effective upon receipt. If the notice is provided by electronic
means then the Party giving the notice shall ensure it is received and acknowledged (such as a read receipt) by the Party receiving
the notice. Without such acknowledgement the notice shall not be deemed given. Either Party may change its contact information
upon written notice to the other party.

 

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16.5
Assignment. This Agreement may not be assigned or transferred by the Licensee (in whole or in part and whether voluntarily, involuntarily,
or by operation of law) without the prior written consent of MyECheck and any attempt to do so shall be null and void and of no
effect. Notwithstanding the foregoing, the Licensee may assign this Agreement to an entity that acquires or succeeds to all or
substantially all of Licensee's business and assets (a “Successor") by providing thirty (30) days prior written notice
to MyECheck, and provided that: (i) MyECheck does not reasonably consider such Successor a direct competitor; and (ii) such assignment
is in writing and states that such Successor is accepting all obligations of the Licensee under this Agreement and agrees to be
bound by and discharge each of the Agreement's terms, conditions, and obligations as if it were the original party hereto.

 

16.6
Governing Law. This Agreement is deemed to have been made and performed in, and is construed pursuant to the laws of the State
of California, excluding application of its conflict of laws principles. In the event MyECheck initiates any legal proceeding with
regard to the interpretation or enforcement of this Agreement, the Parties hereby agree to submit to the exclusive jurisdiction
of the appropriate state and federal courts located in the County of Sacramento, State of California. In the event that the Licensee
initiates any legal proceeding with regard to the interpretation or enforcement of this Agreement, the Parties hereby agree to
submit to the exclusive jurisdiction of the appropriate state and federal courts of the place of performance of the Contract.
Each party irrevocably waives, to the maximum extent permitted by applicable law, any objection that
it may now or hereafter have to the laying of venue for any such proceeding brought in such courts and any claims that any proceeding
brought in any such court has been brought in an inconvenient forum. If either party retains counsel for the purpose of enforcing
or preventing the breach or threatened breach of any provision contained herein or otherwise retains counsel to enforce any right
or remedy it may have, then the prevailing party will be entitled to be promptly reimbursed by the non-prevailing party for all
reasonable costs, fees and expenses, including reasonable attorneys' fees, expended or so incurred by the prevailing party. The
United Nations Convention on Contracts for the International Sale of Goods is specifically disclaimed and shall not apply to this
Agreement.

 

16.6
(ii) ARBITRATION CLAUSE. The Parties shall use their best endeavours to amicably resolve all disputes that may arise from the performance
of this contract and obligations and representations affecting third parties in accordance with the Arbitration Act and the Universal
principles of International Contract dispute resolution. The parties agree that all forms of disputes for resolution through any
disputes, differences or questions that may at any time arise shall be referred to the Chartered Institute of Arbitration. Disputes
arising from Licensee shall be referred to the UK Nigerian Branch LCA Building (Ground Floor)1A, Remi Olowude Street, Lekki Roundabout
Lekki Lagos Nigeria. Disputes arising from MyECheck shall be referred to the North American Branch Northern California Chapter.

 

16.7
Remedies. Each Party recognizes and agrees that there is no adequate remedy at law for a threatened or actual breach of Section
3, Section 7, Section 11 or Section 15.3, that such a breach would irreparably harm the non-breaching Party and that such non-breaching
Party is entitled to seek equitable relief (including an injunction) with respect to any such breach or potential breach, in addition
to any other remedies available at law.

 

    11 

     

    

 

16.8
Waivers and Amendments. Any waiver of or amendment to the terms of this Agreement shall be effective only if made in writing and
signed by an authorized and duly empowered representative of each of the Parties hereto. No failure to exercise, and no delay in
exercising any right hereunder will operate as a waiver thereof, nor will any single or partial exercise of any right hereunder
preclude further exercise of any right hereunder.

 

16.09
Severability. If any provision of this Agreement is found by a court of competent jurisdiction to be unenforceable or invalid,
that provision shall be changed and interpreted to accomplish the objectives of such provision to the greatest extent possible
under applicable law and the remaining provisions shall remain in full force and effect. The Licensee agrees that Section 14 will
remain in effect notwithstanding the enforceability or unenforceability of any provision of Section 10.

 

16.10
Confidentiality of Agreement. MyECheck will disclose this Agreement based on the laws and regulations of the Securities and Exchange
Commission (SEC) governing the notification of the entry into a Material Definitive Agreement and subject to but not limited to
Section 101 of Form 8k as such is and may be amended from time to time. To the degree possible and allowed by law MyECheck shall
redact pricing and sensitive terms. The Licensee shall not disclose any part of this Agreement that MyECheck has not previously
disclosed and is publicly available in MyECheck’s 8-K filing to the SEC. Notwithstanding the foregoing, either party may
make limited disclosure of the terms of this Agreement to the extent required by law, provided that the disclosing party: (i) provides
the non-disclosing party reasonable prior notice of such disclosure, and (ii) uses its best efforts to protect and limit the disclosure
of such information to the extent possible. Notwithstanding the foregoing, The Licensee agrees that MyECheck may acknowledge the
Licensee as a MyECheck customer.

 

16.11
Construction. Section headings in this Agreement are for convenience only and are not to be used in interpreting this Agreement.
As used in this Agreement, the word "including" means "including but not limited to". The parties acknowledge
and agree that no implied rights or licenses are conveyed by this Agreement, that all rights are specific to the parties and do
not extend to their parents, subsidiaries or affiliates and that all rights in and to the Software not expressly granted to the
Licensee in this Agreement are reserved by MyECheck and its suppliers.

 

16.12
Promotion. Each party hereby grants to the other party a nonexclusive, non-transferable, right and license to display such party's
trademarks and logo (subject to the terms and conditions of such party's standard trademark usage guidelines) for purposes of reference
and acknowledgement. The MyECheck brand or logo shall be part of the Processing Solution and evident to Customers and end users.
The Licensee shall ensure Customers are aware of this before entering into the Agreement.

 

16.13
Counterparts. This Agreement may be executed in counterparts, each of which will be considered an original, but all of which together
will constitute the same instrument. Execution and delivery of this Agreement may be evidenced by facsimile transmission.

 

16.14
Inspection Rights. Upon reasonable notice and under the confidentiality terms of Section 11, MyECheck shall have the right once
per year to reasonably inspect the Licensee's premises and relevant records to determine compliance with this Agreement.

 

    12 

     

    

 

16.15
Force Majeure. Any delay in the performance of any duties or obligations of either party (except the payment of money owed) will
not be considered a breach of this Agreement if such delay is caused by a labor dispute, market shortage of materials, fire, earthquake,
flood or any other event beyond the control of such party, provided that such party uses reasonable efforts, under the circumstances,
to resume performance as soon as reasonably practicable.

 

16.16
U.S. Government Rights. The Software is a "commercial item," as that term is defined at 48 C.F.R. 2.101 (Oct. 1995),
consisting of "commercial computer software" and "commercial computer software documentation," as such terms
are used in 48 C.F.R. 12.212 (Sept. 1995). Consistent with 48 C.F.R. 12.212 and 48 C.F.R. 227.7202-1 through 227.7202-4 (June 1995)
(or an equivalent provision, e.g., in supplements of various U.S. government agencies, as applicable), all U.S. Government users
acquire the Software with only those rights set forth herein.

 

16.17
Section 365(n) of Internal Revenue Code. All rights and licenses granted under or pursuant to this Agreement by MyECheck to the
Licensee are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the United States Bankruptcy Code (the "Code"),
licenses to rights to "intellectual property" as defined under the Code. The parties agree that the Licensee, as the
licensee of such rights under this Agreement, shall retain and may fully exercise all of its rights and elections under the Code.
The parties further agree that, in the event of the commencement of bankruptcy proceeding by or against MyECheck under the Code,
the Licensee shall be entitled to retain all of its rights under this Agreement.

 

16.18
Parties Advised by Counsel. This Agreement has been negotiated between parties who are sophisticated and knowledgeable in the matters
contained herein and who have been represented by legal counsel. The provisions of this Agreement shall be interpreted in a reasonable
manner to effect the intentions of the Parties and any rule of law (including Section 1654 of the California Civil Code and any
other authority of any jurisdiction of similar effect) which would require interpretation of any ambiguities in this Agreement
against the drafting Party is not applicable and is hereby waived.

 

16.19
Entire Agreement. Both Parties agree that this Agreement, including the Exhibits attached hereto, is the complete and exclusive
statement of the mutual understanding of the parties and supersedes and cancels all previous and contemporaneous written and oral
agreements and communications relating to the subject matter of this Agreement.

 

16.20
Remedies. The rights and remedies of each Party as set forth in this Agreement are not exclusive and are in addition to any other
rights and remedies available to it in law or in equity.

 

 

    13 

     

    

 

 

IN WITNESS WHEREOF, the
Parties have caused their duly authorized representatives to enter into this Agreement, effective as of the Effective Date.

 

	MYECHECK, INC.	 	Licensee: CENTRIC GATEWAY LIMITED	 
	 	 	 	 	 	 
	BY: 	/s/ EDWARD R. STARRS	 	BY: 	/s/ OMONIYI KOLADE	 
	 	 	 	 	 	 
	NAME:	   EDWARD R. STARRS	 	NAME:	   OMONIYI KOLADE	 
	 	 	 	 	 	 
	TITLE:	   CHIEF EXECUTIVE OFFICER	 	TITLE:	   CHIEF EXECUTIVE OFFICER	 
	 	 	 	 	 	 
	DATE:	   MARCH 7, 2016	 	DATE:	   07/03/2016	 
	 	 	 	 	 	 
	ADDRESS FOR NOTICE:	 	ADDRESS FOR NOTICE:	 
	2600 East Bidwell St. Suite 190	 	15 Olusesan Adetula St.	 
	Folsom, CA  95630	 	Surulere Lagos, Nigeria	 

 

 

    14 

     

    

 

EXHIBIT A

 

SOFTWARE MODULES

LICENSE FEES AND REVENUE
SHARING

 

Pricing:

		a)	Licensee shall negotiate with their customers to pay the highest transactional price sustainable
in the Territory marketplace for the modules listed below.

		b)	At a very minimum Licensee shall guarantee to MyECheck a base price per transaction of USD ****.

 

Revenue Sharing:

		a)	Licensee and MyECheck shall share the revenues generated from Customers (transactional fees, operation
& maintenance fees and any other ongoing fees generated from the Processing Solution) at **************** to Licensee and ***************
to MyECheck.

Software Modules:

		a)	Sending Money

		b)	Requesting Money

		c)	Transactional Fees Billing

 

Bank Connectors:

		a)	Online Banking API

		b)	ATM API

		c)	Online Bank Account opening

		d)	Core – Debit/Credit

		e)	Customer Information File - CRM

 

Social Connectors:

		f)	Facebook

		g)	MS Outlook

		h)	Ecommerce API

		i)	POS API

		j)	Mobile Airtime top-up

		k)	Mobile App

 

Billing
Terms:

Licensee and MyECheck shall
establish a joint co-signed bank account with each Customer licensing the system. Licensee shall be responsible for collecting
fees from each licensed Customer. The system shall deposit the gross fee into the joint bank account at settlement time. MyECheck
shall create a weekly fee report and either party may withdraw their revenue share of the gross fee on a weekly basis.

 

Implementation:

Standard Installation1
                                                         Per
agreement

Custom development                                                      Per
Specification and work order

1To include
project management, installation, integration, testing and training of Customer employees.

    15 

     

    

 

 

EXHIBIT B

 

MAINTENANCE EXHIBIT

 

1. SCOPE OF COVERAGE. MyECheck
will provide maintenance and support services pursuant to this Exhibit ("Maintenance") for the duration of the term of
this Agreement.

 

2. MAINTENANCE SERVICES.
Subject to the terms of this Exhibit, MyECheck will provide the following:

 

2.1.
Severity Levels. MyECheck will use commercially reasonable efforts to acknowledge and address, as described below, reported and
reproducible material errors in the Software which prevent the Software from performing substantially in accordance with the Documentation
(each an "error or issue").

 

(a)
Severity 1 - Major System Impact. The Software suffers an error which cannot be reasonably circumvented and that substantially
impairs the performance of the Production Software as to effectively render it unusable. MyECheck will acknowledge any such reported
Production system error as promptly as possible (but in no event longer than two (2) hours) and will diligently use commercially
reasonable efforts to promptly address and remedy such error.

 

(b)
Severity 2 - Moderate System Impact. The Software suffers an error (and is not of Severity 1) which cannot be reasonably circumvented
and that substantially impairs the use of one or more portions or features of the Production Software required by Customers to
perform necessary business functions. MyECheck will acknowledge any such reported Production system error promptly, but in no event
longer than within four (4) hours and will promptly address and remedy such error during MyECheck's normal Maintenance hours.

 

(c)
Severity 3 - Minor System Impact. The Software suffers an error which impairs the use of one or more portions or features of the
Software, but the reported Production system error can be reasonably circumvented. MyECheck will acknowledge any such reported
Production error within one (1) business day and will work during MyECheck's normal Maintenance hours to provide the appropriate
resolution.

 

(d)
Resolution. Except as otherwise expressly set forth herein, MyECheck will use commercially reasonable efforts to resolve each reported
error with the Software by providing either: (i) a reasonable work around, which may consist of specific administrative steps or
process changes; (ii) an object code patch to the Software; or (iii) a specific action plan regarding how MyECheck intends to address
the reported error and an estimate on how long it may take to remedy or work around the error. Licensee acknowledges that in order
to perform Maintenance, MyECheck may require access to Customer systems and/or a copy of code in Customer’s possession relating
to the Software. Licensee agrees to provide access, assistance and information to MyECheck as required to resolve errors with the
Software.

 

2.2
Available Updates. At no additional cost to Licensee, MyECheck will deliver to Licensee and their Customers, if so directed, as
made commercially available by MyECheck, bug fixes, Maintenance updates and Major Releases for the Software ("Updates"),
which will thereafter be considered "Software" for all purposes except for Section 8.1 of the Agreement.

 

    16 

     

    

 

2.3
Other Errors and Issues. If Licensee reports an error or issue with the Software that is not of Severity 1, 2 or 3 and that is
scheduled by MyECheck to be addressed in a later Update, MyECheck may address such error or issue in such Update. Licensee agrees
to put its best effort into getting its Customers to pay MyECheck at MyECheck's standard rates for all effort expended towards
resolution of any Customer error or issue which is later determined to result from any cause other than an error or issue in the
Software.

 

3. SUPPORT LINES.

 

3.1
First Line Support. Licensee shall establish and maintain the organization and processes to provide first line support directly
to any of Licensee's Customers. MyECheck shall have no obligation to provide any first line support to Licensee's Customers. First
line support shall include: (a) a direct response to Licensee's Customers with respect to problems or inquiries concerning the
performance, functionality or operation of the Software; (b) a diagnosis of problems or performance deficiencies in the Software;
and (c) a resolution of problems or performance deficiencies in the Software as provided by MyECheck if so warranted.

 

3.2
Second Line Support. MyECheck shall maintain the organization and processes necessary to provide second line support for the Software
to Licensee. Such second line support shall be provided to Licensee only if, after reasonable commercial effort, Licensee is unable
to diagnose and/or resolve problems or performance deficiencies in the Software. Second line support will be provided to up to
two (2) designated and trained representatives of Licensee. MyECheck shall have no obligation to provide second line support directly
to any of Licensee's Customers but may do so at their choice. In order to assist MyECheck in providing such second line support,
Licensee will provide MyECheck with the ability to access Licensee's or Customer’s site(s) which utilize the Software (including
but not limited to configuration information and error logs) and provide assistance to MyECheck in order to facilitate MyECheck's
use of remote administration tools relating to the Software.

 

4. SERVICE LIMITATIONS.
The Maintenance does not include, nor will MyECheck be obligated to provide, services required as a result of: (a) any modification,
reconfiguration or maintenance of the Software not performed or recommended by MyECheck; (b) any use of the Software on a system
that does not meet MyECheck 's minimum standards for such as set forth in the applicable Documentation; (c) any third party hardware
or software not supported or embedded by MyECheck; (d) any configuration of the Software (or hardware configurations) other than
as recommended by MyECheck; or (e) any error caused by Licensee, any Customer or any third party's negligence, abuse, misapplication,
or use of Software other than as expressly permitted under the Agreement per the terms and conditions in Section 15.

 

    17 

     

    

EXHIBIT C

SERVICES EXHIBIT

 

1. STATEMENT OF WORK. MyECheck
may render services, working individually or with Licensee and/or third parties retained by Licensee, (the "Services")
to Licensee’s Customers on a time and materials or fixed price basis as may be agreed upon in a written Statement of Work
signed by both parties.

 

2. PROJECT ADMINISTRATION.
The Technical Contact (as set forth in the Agreement) for Licensee shall provide MyECheck all assistance and guidance reasonably
requested by MyECheck for the performance of the Services. Licensee acknowledges that the timely performance of the Services is
dependent both on reasonable access to and assistance by Licensee, including the Licensee Technical Contact.

 

3. COMPENSATION. MyECheck
and Licensee shall determine all fees to be paid by Licensee’s Customers for work included in this Exhibit C.

 

4. THIRD PARTY SOFTWARE.
Licensee acknowledges that in order for MyECheck to perform the Services, Licensee’s Customers may need to obtain additional
third party services ("Third Party Services") or third party technology ("Third Party Technology"). Licensee
agrees on behalf of its Customers that the rights and licenses with respect to Third Party Technology and Third Party Services
shall be under terms set forth in the pertinent purchase, license or services agreements between Licensee’s Customers and
the vendors of such Third Party Software or Third Party Services. Licensee’s Customers shall execute and comply with appropriate
purchase, license, or services agreements with respect to any Third Party Software or Third Party Services. Any amounts payable
to third party vendors or service providers under such agreements are the sole responsibility of Licensee’s Customers and
shall be paid directly by Licensee’s Customers to such third party vendors or service providers.

 

5. LICENSE TO Licensee
MATERIALS. Licensee acknowledges that in order to perform the Services, MyECheck may require access to and use of certain materials
of Licensee or Licensee's suppliers (including access to code relating to the performance of the Software) ("Licensee Materials").
Licensee grants to MyECheck a royalty-free, non-exclusive license to access and use the Licensee Materials (including through subcontractors)
as required for MyECheck's performance of the Services hereunder.

 

6. RIGHTS AND OWNERSHIP.
To the extent that any modification, enhancement, extension, interface or derivative work to the Software or any other deliverable
is produced through the Services, Licensee shall have the same rights in such (both the source and object code form) as Licensee
has in the Software. Licensee acknowledges and agrees that other than the Third Party Software and the Licensee Materials, MyECheck
owns all computer programs, utilities and intellectual property which aid MyECheck in performing the Services or which are produced
as a result of the Services.

 

7. Independent Contractors.
MyECheck agrees that it shall be considered an independent contractor and that it shall not be deemed to be an employee of Licensee.
MyECheck and its employees, agents and contractors performing services hereunder shall not be entitled to any employee benefits
of Licensee.

 

    18 

     

    

MyECheck Professional
Services Statement of Work

 

PROJECT ASSIGNMENT

 

This Project Assignment
is issued in accordance with, and shall be governed by, the terms herein and the terms and conditions of the Software License and
Agency Agreement entered into between the parties on ________________ ___, 2015

 

PROJECT NAME: _______________________________________________________

 

PROJECT DURATION ___________________________________________________

 

MyECheck Project Manager

Name: ________________________________________________

Title: ________________________________________________

Address:________________________________________________

Phone: ________________________________________________

E-mail:________________________________________________

Fax: ________________________________________________

Mobile: ________________________________________________

Email:________________________________________________

 

Licensee Project Manager:

Name: ________________________________________________

Title: ________________________________________________

Address:________________________________________________

Phone: ________________________________________________

E-mail:________________________________________________

Fax: ________________________________________________

Mobile: ________________________________________________

Email:________________________________________________

 

Licensee Billing
Contact:

Name: ________________________________________________

Title: ________________________________________________

Address:________________________________________________

Phone: ________________________________________________

E-mail:________________________________________________

Fax: ________________________________________________

Mobile: ________________________________________________

Email:________________________________________________

 

Project Objective:

 

MyECheck Consulting Services
will provide general and technical consulting services to Licensee Customer on an hourly or fixed price basis to assist with the
implementation of MyECheck Software. The support provided herein will include but not be limited to the following areas:

 

    19 

     

    

 

 

		·	Project management and business analysis 

		·	Software architecture, design and coding

		·	Testing and quality Assurance

		·	Installation and configuration of hardware devices and networks

		·	Graphics and end user experience design

 

Members from MyECheck Professional
Services will be assigned in various rolls to support Licensee in its implementation of the MyECheck system. The involvement of
these consultants will range from part time to full time. MyECheck will direct the extent of the involvement that is necessary,
and Licensee agrees to devote such resources as MyECheck shall reasonably direct. However, minimal time from the MyECheck Project
Manager and at least part time involvement from a Consulting Manager are mandatory. The primary goal of the MyECheck Professional
services personnel is the support of Licensee in the successful implementation of the Processing Solution.

 

Project Requirements:

		•	Licensee will provide knowledgeable personnel during the project who are familiar with the project
requirements.

		•	Licensee will provide network/server administrator assistance when MyECheck installs any software,
and provide any needed network linkage to any existing databases.

		•	MyECheck technical resources will be provided desktop space, connection to the development environment
and network, telephones, and analog line for connection to the MyECheck network while working on site.

		•	Licensee will provide as needed roles (creative, data loads, DBA and system admin).

 

Project Staffing for MyECheck
Resources:

 

Project staffing level
will be determined by MyECheck. The staffing level is elastic and may be changed by MyECheck based upon project requirements without
notice or penalty. Licensee Customer is engaging MyECheck Professional services roles and not specific staff.

 

Project Expenses:

 

MyECheck shall incur all
reasonable expenses in the performance of the services contained herein including but not limited to contractors and consultants
used for software development, testing, quality assurance and deployment during the term of this agreement. Licensee shall incur
all expenses related to the performance of services as they relate directly to the implementation. Travel and living expenses incurred
by either Party in the performance of the Services shall be billed to Licensee Customer unless otherwise mutually agreed to by
the Parties.

 

Non-Solicitation of Employees:

 

During the term of this
Agreement and for a period of one (1) year following completion of work hereunder, neither party shall solicit employment of any
current or prior employee of the other.

 

    20 

     

    

 

Signatures:

 

EACH PARTY ACKNOWLEDGES
THAT IT HAS READ THIS STATEMENT OF WORK, UNDERSTANDS IT AND AGREES TO BE BOUND BY ITS TERMS AND CONDITIONS. FURTHER, EACH PARTY
AGREES THAT, ALONG WITH THE APPLICABLE SOFTWARE LICENSE AND SERVICES AGREEMENT, THIS STATEMENT OF WORK AND APPLICABLE CHANGE ORDERS
ARE THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE PARTIES RELATING TO THE SERVICES DESCRIBED HEREIN, WHICH
SUPERSEDES ALL PROPOSALS OR PRIOR AGREEMENTS, ORAL OR WRITTEN, AND ALL OTHER COMMUNICATIONS BETWEEN THE PARTIES RELATING TO THE
SUBJECT MATTER HEREOF.

 

THE SIGNATURE BELOW ACKNOWLEDGES
THAT EACH PARTY HAS AUTHORIZED AND APPROVED THIS ORDER IN ACCORDANCE WITH THE TERMS AND CONDITIONS SET FORTH IN THE AGREEMENT.
WHETHER OR NOT LICENSEE CUSTOMER ISSUES A PURCHASE ORDER, THIS SIGNATURE IS LICENSEE CUSTOMER'S EXPRESS AUTHORIZATION AND COMMITMENT
TO PAY MYECHECK FOR THE PRODUCTS AND/OR SERVICES HEREIN IN ACCORDANCE WITH THE PAYMENT SCHEDULE FOR THIS ORDER. IF NO PAYMENT TERMS
HAVE BEEN SPECIFIED ELSEWHERE, PAYMENTS ARE DUE NET 30 DAYS FROM INVOICE DATE. LICENSEE CUSTOMER AGREES THAT THESE TERMS WILL CONTROL
OVER ANY CONFLICTING TERMS ON ANY LICENSEE CUSTOMER PURCHASE ORDER.

 

LICENSEE CUSTOMER MAY TERMINATE
ANY PROFESSIONAL SERVICES STATEMENT OF WORK HEREUNDER AT ANY TIME BY PROVIDING MYECHECK WITH WRITTEN NOTICE THIRTY (30) WORKING
DAYS PRIOR TO TERMINATION. THIS NOTICE IS REQUIRED REGARDLESS OF WHETHER WORK HAS STARTED OR NOT. IN THE EVENT THAT LICENSEE CUSTOMER
TERMINATES EITHER A PROFESSIONAL SERVICES STATEMENT OF WORK OR SERVICES TO BE PERFORMED HEREUNDER, LICENSEE CUSTOMER SHALL REMAIN
OBLIGATED TO PAY MYECHECK SOFTWARE FOR THE SERVICES PERFORMED, OR TO BE PERFORMED FOR THE REMAINDER OF THE TERM OF THE AGREEMENT.

 

	ACCEPTED BY:  Licensee Customer	 	ACCEPTED BY: MyECheck, Inc.	 
	 	 	 	 	 	 
	 	 	 	 
	By: 	 	 	By:	 	 
	 	 	 	 	 	 
	 	 	 	 
	Name:    	 	 	Name: 	 	 
	 	 	 	 	 	 
	Title	 	 	Title: 	 	 
	 	 	 	 	 	 
	Date:	 	 	Date:	 	 

 

    21 

     

    

 

EXHIBIT D

 

ACKNOWLEDGEMENT OF RIGHT
TO USE SOCIAL BANKING PLATFORM

 

		1.	CUSTOMER:

 

Centric Gateway Limited,
an authorized licensee of MyECheck, Inc. (“MyECheck”), grants to ____________________________________________________________
(“Customer”), whose principal place of business is:

 

________________________________________________________________________

Street

________________________________________________________________________

City

________________________________________________________________________

State/Province

________________________________________________________________________

Country

 

2. RIGHT TO USE. Licensee hereby grants to Customer
a limited, non-exclusive, non-transferable (except as otherwise expressly set forth herein), license to install (in object code
form only and only in accordance with the Documentation), maintain and run the MyECheck Social Banking Platform for the benefit
of Customer’s end users. Customer may also make backup copies for disaster and recovery purposes as necessary and reasonable.
Customer shall keep a record of each such backup copy and the location of its storage, and shall provide any and all such records
to Licensee upon request. Customer must reproduce and include any and all copyright, proprietary and any other notices that appear
on the original Software and any media therefore on any copies made by Customer.

 

3. RESTRICTIONS ON USE.
Customer acknowledges that the Software, its structure, organization and Source Code, and the Documentation are the property and
constitute valuable trade secrets of MyECheck and its suppliers. Customer agrees not to: (a) decompile or disassemble the Software,
separate the Software into its component parts, or in any way attempt to reconstruct or discover any source code or algorithms
of the Software by any means whatsoever; (b) remove any product identification, trademark, copyright, confidentiality, proprietary
or other notice contained on or within the Software; (c) modify or create any derivative works from the Software or any part thereof,
except to the extent that the Software provides for user-modifiable components (d) except as otherwise permitted herein, sell,
sublicense, lease, rent, loan, assign, convey or otherwise transfer the Software or any component thereof; (e) otherwise copy or
use the Software for any purpose or in any manner not expressly permitted in this Agreement; or (f) knowingly permit or encourage
any third party to do any of the foregoing. All rights in and to the Software and Documentation not expressly granted to Customer
in this Agreement are reserved by MyECheck, Licensee and their suppliers.

 

 

    22 

     

    

 

	CUSTOMER	 	Licensee: CENTRIC GATEWAY LIMITED	 
	 	 	 	 	 	 
	 	 	 	 
	BY: 	 	 	BY:	 	 
	 	 	 	 	 	 
	 	 	 	 
	PRINT NAME	 	PRINT NAME:	 
	 	 	 	 	 	 
	TITLE: 	 	 	TITLE:	 	 
	 	 	 	 	 	 
	Date:	 	 	Date:	 	 
	 	 	 	 	 	 
	ADDRESS FOR NOTICE:	 	ADDRESS FOR NOTICE:	 
	 	 	Centric Gateway Limited	 
	 	 	15 Olusesan Adetula St.	 
	 	 	Surulere Lagos, Nigeria	 

 

    23 

     

    

 

EXHIBIT E

EXCLUSIVITY TERMS

 

		1.	Licensee shall have exclusive licensing rights to the Territory during the Term the “Exclusivity
Period”).

		2.	During the Exclusivity Period (or valid Renewal Period) MyECheck shall not enter into an agreement
with any other provider to offer the Processing Solution to financial institutions.

		3.	Customers of Licensee (Regional Financial Institutions) may wish to extend the Processing Solution
into other countries within Africa. The Licensee shall have a non-exclusive License to additional countries in Africa where its
customers wish to extend the Processing Solution.

 

 

 

    24Exhibit 10.1

 

WAIVER AND FIRST AMENDMENT TO SENIOR SECURED,
SUPER PRIORITY

DEBTOR-IN-POSSESSION CREDIT AGREEMENT

 

WAIVER AND FIRST
AMENDMENT TO SENIOR SECURED, SUPER PRIORTITY DEBTOR-IN-POSSESSION CREDIT AGREEMENT (this “Amendment”),
dated as of March 9, 2016, by and among NUO THERAPEUTICS, INC. (“Borrower”), DEERFIELD MGMT, L.P.
(“Agent”), DEERFIELD PRIVATE DESIGN FUND II, L.P., DEERFIELD SPECIAL SITUATIONS FUND, L.P. and DEERFIELD PRIVATE
DESIGN INTERNATIONAL II, L.P. (collectively referred to as the “Lenders” and together with the Borrower
and the Agent, the “Parties”).

 

RECITALS:

 

A.           Borrower,
Agent and Lenders have entered into that certain Senior Secured, Superpriority Debtor-In-Possession Credit Agreement dated as of
January 28, 2016 (as the same may be amended, modified, restated or otherwise supplemented from time to time, the “Loan
Agreement”).

 

B.           Events
of Default have occurred under the Loan Agreement as set forth in the notice of default (the “Default Notice”) sent
by Lenders and Agent to Borrower on February 23, 2016 (“Existing Events of Default”).

 

C.           Under
the Loan Agreement, Lenders have advance to Borrower and Borrower has borrowed from Lenders a total principal amount of $1,500,000
in Loans, which are currently outstanding.

 

D.           Borrower
has requested Agent and Lenders waive the Existing Events of Default and amend the Loan Agreement to, among other things, reduce
the total Commitment to $6,000,000 ( of which $1,500,000 has already been used as of the date hereof), exclude the making of a
Roll Up Loan from the permitted uses of proceeds thereunder, and provide for continued Loans to Borrower, and Agent and Lenders
are willing to waive the Existing Events of Default and amend the Loan Agreement on the terms and conditions set forth herein.

 

NOW, THEREFORE, in consideration
of the mutual agreements contained herein, the Parties agree as follows:

 

1.          Defined
Terms. Capitalized terms used herein and in the recitals hereto which are defined in the Loan Agreement or other Loan Documents,
unless otherwise defined herein, shall have the meanings ascribed to them in the Loan Agreement and the other Loan Documents. The
Recitals to this Amendment are incorporated herein in their entirety by this reference thereto.

 

2.          Amendments
to Loan Agreement. Upon the satisfaction of the conditions set forth in Section 3 of this Amendment (the “Effective
Date”), the Loan Agreement is hereby amended as follows effective from and after the Effective Date:

 

a.           The
definition of “Case Milestones” in Section 1.1 of the Loan Agreement is hereby deleted in its entirety and the following
is inserted in substitution therefor:

 

    	 	1.	 

     

    

 

“Case Milestones”
means (i) approval by the Bankruptcy Court of a consolidated disclosure statement and Chapter 11 Plan confirmation hearing by not
later than March 28, 2016, (ii) filing of the Chapter 11 Plan and a disclosure statement acceptable to Lenders by March 28,
2016; (iii) commencement of solicitation of approval of the Chapter 11 Plan by creditors and equity holders of Borrower by no later
than March 31, 2016; (iv) entry of an order of the Bankruptcy Court approving the disclosure statement and confirming the Chapter
11 Plan by no later than April 25, 2016; and (v) effective date of the Chapter 11 Plan and substantial consummation by no later
than May 4,2016.

 

b.           The
definition of “Chapter 11 Plan” in Section 1.1 of the Loan Agreement is hereby deleted in its entirety and the following
is inserted in substitution therefor:

 

“Chapter
11 Plan” means a plan of reorganization of the Borrower consistent with the Term Sheet attached hereto as Exhibit B.

 

c.           The
definition of “Commitment” in Section 1.1 of the Loan Agreement is hereby deleted in its entirety and the following
is inserted in substitution therefor:

 

“Commitment”
means the Commitment of Lenders to provide Loans in accordance with Section 2.2 in an aggregate principal amount of $6,000,000.

 

d.           The
definition of Maturity Date set forth in Section 1.1 of the Loan Agreement is hereby deleted in its entirety and the following
is inserted in substitution therefor:

 

“Maturity
Date” means the earliest of: (i) the stated maturity date, which shall be April 25, 2016 if the Chapter 11 Plan in not confirmed
by that date, or May 5, 2016 if the Chapter 11 Plan is confirmed by April 25, 2016, (ii) the date on which the Bankruptcy Court
enters an order confirming the Chapter 11 Plan; and (iii) the acceleration of the Loans or termination of the Commitment under
this Agreement, including, without limitations, as a result of the occurrence of an Event of Default.

 

e.           The
definition of “Roll Up Loan” in Section 1.1 of the Loan Agreement is hereby deleted in its entirety.

 

f.            Section
2.1 of the Loan Agreement is hereby deleted in its entirety and the following is inserted in substitution therefor:

 

“The proceeds
of the Loans shall be used to (i) provide for the ongoing working capital and general corporate and operating purposes of the Borrower
during the pendency of the Chapter 11 Case in accordance with, and subject to, the Budget, (ii) pay fees, interest and expenses
associated with the Loans and the Existing Credit Agreement, and (iii) pay the Carve-Out, including without limitation the payment
of the fees of the U.S. Trustee’s office, in each case, in accordance with the Budget.

 

g.           The
first full sentence of Section 2.2(b) of the Loan Agreement is hereby deleted in its entirety and the following is inserted in
substitution therefor:

 

    	 	2.	 

     

    

 

“Subject
to satisfaction of each of the conditions set forth in Section 4.2, each Lender severally agrees to make Loans to the Borrower
after the initial Loan in amounts not to exceed the Maximum Available Amount for any purpose in accordance with Section 2.1(a)
no later than two (2) Business Days after receiving a Notice of Borrowing.”

 

h.           Section
4.2 of the Loan Agreement is hereby amended to delete the words “including the Roll Up Loan” where they appear therein.

 

i.            Section
6.1(b) of the Loan Agreement is hereby amended to delete subsections (xxiii) and (xxiv) thereof in their entirety and inserting
the following in substitution therefor:

 

“(xxiii)
entry of an order by the Bankruptcy Court authorizing the sale of all or substantially all of the assets of Borrower (or Borrower
seeking or supporting such sale, unless (A) such order contemplates repayment in full in Cash of the Obligations and Existing Loans
upon consummation of the sale.

 

(xxiv) entry of
an order by the Bankruptcy Court approving a plan of reorganization, other than the Chapter 11 Plan; and”.

 

j.            Upon
the effectiveness of this Amendment, the Budget attached hereto as Exhibit A shall be deemed to be the Budget.

 

3.          Conditions
Precedent. The occurrence of the Effective Date (and the effectiveness of this Amendment) is subject to the satisfaction of
the following conditions precedent:

 

a.           Amendment.
The Borrower and the Lenders shall have each executed and mutually delivered this Amendment.

 

b.           Performance;
No Default. The Borrower shall have performed and complied with all agreements and conditions contained in the Loan Agreement
and the other Loan Documents to be performed by or complied with by the Borrower prior to the date hereof, except as waived hereby.

  

    	 	3.	 

     

    

 

c.           Court
Approval. The Bankruptcy court shall have entered the Final Order.

 

4.          Waiver.
Upon the Effective Date, Lenders waive the occurrence and continuation of each of the Existing Events of Default and any failure
to comply with the Default Notice, provided, that such waiver shall not constitute a waiver of any other Event of Default.

 

5.          Representations
and Warranties. The Borrower hereby represents and warrants to Lenders as of the Effective Date as follows:

 

a.           As
of the Effective Date, except as expressly modified by the amendments in Section 2 above, the representations and warranties of
Borrower contained in the Loan Documents are (i) in the case of representations and warranties qualified by “materiality,”
“Material Adverse Effect” or similar language, true and correct in all respects and (ii) in the case of all other
representations and warranties, true and correct in all material respects, in each case on and as of the date hereof as if made
as of the date of this Amendment, except to the extent that any such representation or warranty relates to a specific date, in
which case such representation and warranty shall be true and correct in all respects or all material respects, as applicable,
as of such earlier date;

 

b.           No
Event of Default exists except as waived hereby; and

 

c.           The
Borrower has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this
Amendment and each of the other Loan Documents to which it is a party and otherwise to carry out its obligations hereunder and
thereunder. The Borrower’s execution and delivery of each of this Amendment and the other Loan Documents to which it is
a party and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary
corporate action on the part of the Borrower, and no further corporate action is required by the Borrower, its Board of Directors
or its stockholders in connection therewith other than in connection with the Required Approvals (as defined below). Each of the
Amendment and the other Loan Documents to which it is a party has been (or upon delivery will have been) duly executed by the
Borrower and is, or when delivered in accordance with the terms hereof, will constitute the legal, valid and binding obligation
of the Borrower enforceable against the Borrower in accordance with their terms, except as such enforceability may be limited
by applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally
the enforcement of, creditors’ rights and remedies or by other equitable principles of general application. 
The execution, delivery and performance of this Amendment by the Borrower and the consummation of the transactions therein
contemplated will not (A) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute
a default under, or result in the creation or imposition of any Lien (other than Permitted Liens) upon any assets of the Borrower
pursuant to, any agreement to which the Borrower is a party or by which the Borrower is bound or to which any of the assets of
the Borrower is subject, (B) result in any violation of or conflict with the provisions of the Organizational Documents, (C) result
in the violation of any Applicable Law or (D) result in the violation of any judgment, order, rule, regulation or decree of any
Governmental Authority. No consent, approval, authorization or order of, or registration or filing with any Governmental Authority
is required for the execution, delivery and performance of any of the Amendment and the other Loan Documents or for the consummation
by the

 

    	 	4.	 

     

    

 

Borrower
of the transactions contemplated thereby except for those that have been made or obtained prior to the date of this Agreement (the
“Required Approvals”).

 

6.          No
Further Amendments; Ratification of Liability. Except as amended hereby, the Loan Agreement and each of the other Loan Documents
shall remain unchanged and in full force and effect in accordance with their respective terms. Borrower as a debtor, grantor, pledgor,
guarantor or assignor, or in any similar capacity in which it has granted Liens or acted as an accommodation party or guarantor,
as the case may be, hereby ratifies, confirms and reaffirms its liabilities, its payment and performance obligations (contingent
or otherwise) and its agreements under the Loan Agreement and the other Loan Documents, all as amended as of the Effective Date
by this Amendment and the liens and security interests granted, created and perfected thereby. The Agent’s and Lenders’
agreement to the terms of this Amendment or any other amendment of the Loan Agreement or any other Loan Document shall not be deemed
to establish or create a custom or course of dealing among Borrower and Lenders. This Amendment, together with the other Loan Documents,
contains the entire agreement among Borrower, Agent and Lenders contemplated by this Amendment.

 

[Remainder of Page Intentionally Left Blank,
signature page follows]

 

    	 	5.	 

     

    

 

IN WITNESS WHEREOF, the
parties have executed this Amendment as of the date set forth above.

 

	 	BORROWER:
	 	 
	 	NUO THERAPEUTICS, INC.
	 	 	 
	 	By:	/s/ David Jorden
	 	Name: 	David Jorden
	 	Title:	Acting CEO/CFO
	 	 	 
	 	LENDERS:
	 	 
	 	DEERFIELD PRIVATE DESIGN FUND II, L.P.
	 	 	 
	 	By:	Deerfield Mgmt, L.P., its General Partner
	 	By:	J.E. Flynn Capital, LLC, its General Partner
	 		 
	 	By:	/s/ David J. Clark
	 	Name:	David J. Clark
	 	Title:	Authorized Signatory
	 	 	 
	 	DEERFIELD SPECIAL SITUATIONS FUND, L.P.
	 	 	 
	 	By:	Deerfield Mgmt, L.P., its General Partner
	 	By:	J.E. Flynn Capital, LLC, its General Partner
	 	 	 
	 	By:	/s/ David J. Clark
	 	Name:	David J. Clark
	 	Title:	Authorized Signatory
	 	 	 
	 	DEERFIELD PRIVATE DESIGN 
	 	INTERNATIONAL II, L.P.
	 	 	 
	 	By:	Deerfield Mgmt, L.P., its General Partner
	 	By:	J.E. Flynn Capital, LLC, its General Partner
	 	 	 
	 	By:	/s/ David J. Clark
	 	Name:	David J. Clark
	 	Title:	Authorized Signatory

 

    	 	6.	 

     

    

 

EXHIBIT A

BUDGET

 

	NUO THERAPEUTICS, INC.	WEEKLY CASH-FLOW FORECAST
	Weekly Cash-Flow Projection	CONSOLIDATED
	 	 
	All figures in thousands of U.S. dollars	 

 

	Week number	 	 	1 	2 	3 	4 	5 	6 	7 	8 	 	Accrued and 

unpaid	 	8 WEEKS 

ENDED
	Week-ending date	 	 	3/6	3/13	3/20	3/27	4/3	4/10	4/17	4/24	 	 
	Pre/Post-petition week	 	 	Post	Post	Post	Post	Post	Post	Post	Post	 	4/24	 	4/24
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Aurix CED	 	 	 	17	17	17	17	17	18	18	18	 	-	 	138
	 	Aurix VA	 	 	 	17	17	17	17	17	18	18	18	 	-	 	138
	 	Angel	 	 	 	44	46	79	31	35	32	95	32	 	-	 	394
	 	All other revenue	 	 	 	4	4	4	4	4	4	4	4	 	-	 	31
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	TOTAL REVENUE	 	 	 	81	84	117	69	73	71	134	71	 	-	 	701
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Beginning operating cash balance	 	 	 	655	489	371	600	514	387	425	714	 	2,631	 	655
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Collections	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Aurix CED	 	 	 	18	18	15	19	29	16	17	28	 	-	 	159
	 	Aurix VA	 	 	 	14	14	15	15	15	15	17	17	 	-	 	123
	 	Angel	 	 	 	49	17	-	25	-	29	12	13	 	-	 	147
	 	All other collections	 	 	 	-	-	50	-	-	-	-	-	 	-	 	50
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Total collections	 	 	 	81	49	80	59	44	60	46	58	 	-	 	478
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Operating disbursements	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Payroll and payroll taxes	 	 	 	-	-	128	-	134	-	118	-	 	105	 	484
	 	Sales commissions	 	 	 	-	-	-	-	20	-	-	-	 	30	 	50
	 	Employee benefits	 	 	 	11	11	11	11	11	10	9	9	 	51	 	134
	 	Employee travel and entertainment	 	 	 	11	10	10	10	10	10	10	10	 	20	 	101
	 	Research and development services	 	 	 	8	8	8	8	9	9	9	9	 	46	 	115
	 	Inventory purchases	 	 	 	70	9	6	25	7	6	6	11	 	71	 	211
	 	Outside services	 	 	 	3	3	3	3	3	3	3	3	 	14	 	38
	 	Marketing expense	 	 	 	6	6	6	6	13	14	14	14	 	68	 	147
	 	Reimbursement expense 1	 	 	 	12	12	12	12	8	7	7	7	 	36	 	114
	 	Investor relations	 	 	 	0	0	0	0	2	3	3	3	 	14	 	26
	 	Insurances	 	 	 	-	-	-	-	-	-	-	-	 	-	 	-
	 	Information technology	 	 	 	5	5	5	5	2	1	1	1	 	6	 	31
	 	Supplies	 	 	 	4	4	4	4	4	4	4	4	 	20	 	55
	 	Utilities	 	 	 	-	1	1	1	1	1	1	1	 	-	 	5
	 	Licensing fees	 	 	 	1	1	1	1	1	1	1	1	 	3	 	7
	 	Professional fees, ordinary course	 	 	 	-	16	13	13	13	13	13	13	 	53	 	148
	 	Board of Directors fees	 	 	 	3	3	3	3	3	3	3	3	 	14	 	38
	 	Excise taxes	 	 	 	7	-	7	-	7	-	7	-	 	14	 	41
	 	All other operating disbursements	 	 	 	12	11	11	11	17	26	26	26	 	109	 	250
	 	Total operating disbursements	 	 	 	154	100	229	114	264	111	235	115	 	677	 	1,998
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	OPERATING CASH FLOW	 	 	 	$   (72)	$   (50)	$ (149)	$   (55)	$  (220)	$    (50)	$  (189)	$    (57)	 	$  (677)	 	$ (1,520)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Non-operating disbursements	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Bank fees	 	 	 	5	-	-	-	5	-	-	-	 	5	 	15
	 	Income and business taxes	 	 	 	3	-	25	-	3	-	-	-	 	28	 	59
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Total non-operating disbursements	 	 	 	8	-	25	-	8	-	-	-	 	33	 	74
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Bankruptcy-related disbursements	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Interest, DIP loan new money	 	 	 	12	-	-	-	20	-	-	-	 	24	 	57
	 	Interest, DIP loan pre-petition roll-up	 	 	 	-	-	-	-	-	-	-	-	 	-	 	-
	 	Fees, DIP loan	 	 	 	-	23	-	-	-	-	-	-	 	-	 	23
	 	Professional fees, restructuring 2	 	 	 	48	250	97	32	378	411	22	26	 	1,708	 	2,973
	 	Transaction fees	 	 	 	-	-	-	-	-	-	-	-	 	-	 	-
	 	Vendor deposits	 	 	 	25	95	-	-	-	-	-	-	 	(150)	 	(30)
	 	Critical-vendor payments	 	 	 	-	200	-	-	-	-	-	-	 	-	 	200
	 	Priority claims	 	 	 	-	-	-	-	-	-	-	-	 	-	 	-
	 	KEIP/KERP	 	 	 	-	-	-	-	-	-	-	-	 	325	 	325
	 	All other (sources) / uses	 	 	 	-	-	-	-	-	-	-	-	 	-	 	-
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Total bankruptcy-related disbursements	 	 	85	568	97	32	398	411	22	26	 	1,907	 	3,547
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	TOTAL DISBURSEMENTS	 	 	 	247	667	351	146	670	522	257	141	 	2,617	 	5,619
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	NET CASH FLOW	 	 	 	$ (166)	$ (618)	$ (271)	$   (87)	$  (626)	$  (462)	$  (211)	$    (83)	 	$(2,617)	 	$(5,141)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DIP loan, new money	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Period	 	 	 	Interim	Final	Final	Final	Final	Final	Final	Final	 	Final	 	Final
	 	Beginning balance	 	 	 	1,500	1,500	2,000	2,500	2,500	3,000	3,500	4,000	 	6,000	 	1,500
	 	Add: Advances	 	 	 	-	500	500	-	500	500	500	2,000	 	-	 	4,500
	 	Subtract: Repayments	 	 	 	-	-	-	-	-	-	-	-	 	-	 	-
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Ending balance, line of credit	 	 	 	$1,500	$2,000	$2,500	$2,500	$ 3,000	$ 3,500	$   4,000	$  6,000	 	$   6,000	 	$   6,000
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	ENDING OPERATING CASH BALANCE	 	 	$   489	$   371	$    600	$   514	$ 387	$    425	$    714	$ 2,631	 	$        14	 	$         14
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Working-capital balances	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Accounts receivable	 	 	 	1,518	1,552	1,589	1,599	1,628	1,639	1,728	1,741	 	1,741	 	1,741
	 	Inventory	 	 	 	444	442	442	433	194	200	241	307	 	307	 	307
	 	Accounts payable	 	 	 	376	376	374	371	368	371	402	469	 	469	 	469
	 	DIP loan, new money	 	 	 	1,500	2,000	2,500	2,500	3,000	3,500	4,000	6,000	 	6,000	 	6,000

 

 

1. Reimbursement expense refers to expenses the
Debtor incurs to ensure wound-care sites receive reimbursement from outside parties

2. Includes fees and expenses to Ad Hoc Equity
Committee, subject to Court approval upon a motion under §503(b) of the U.S. Bankruptcy Code.

 

    	 	7.	 

     

    

 

NUO THERAPEUTICS, INC.

Accrual and payment of professional fees and expenses

 

	All figures in thousands of U.S. dollars	Week	1	2	3	4	5	6	7	8	9	10	11	12	13	 	Accrued and

unpaid	 	TOTAL
	Week ending	1/31	2/7	2/14	2/21	2/28	3/6	3/13	3/20	3/27	4/3	4/10	4/17	4/24	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Beginning balance  	-	488	678	897	1,131	1,239	1,398	1,373	1,481	1,735	1,548	1,329	1,513	 	1,783	 	-
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Add: Accruals for Debtor professionals  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Debtor lead counsel  	64	73	73	73	73	68	71	71	71	71	71	72	72	 	-	 	922
	Debtor local counsel  	19	19	19	19	19	20	20	20	20	20	20	30	30	 	-	 	275
	CRO and additional personnel  	29	48	40	53	48	37	42	32	37	22	22	26	36	 	-	 	472
	Investment banker  	55	-	-	-	55	-	-	-	55	-	-	-	55	 	-	 	220
	Claims agent  	19	14	14	14	13	13	13	13	11	11	11	11	16	 	-	 	173
	U.S. Trustee  	-	-	-	-	-	-	-	-	13	-	-	-	13	 	-	 	26
	Subtotal accruals for Debtor professionals  	186	154	145	159	208	138	146	136	207	124	124	139	222	 	-	 	2,088
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Add: Accruals for DIP-lender professionals  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DIP lender lead counsel 1  	264	26	26	26	21	21	26	21	26	21	21	21	27	 	-	 	547
	DIP lender local counsel 2  	38	10	5	6	6	5	10	5	10	5	5	5	10	 	-	 	120
	Subtotal accruals for DIP-lender professionals  	302	36	31	32	27	26	36	26	36	26	26	26	37	 	-	 	667
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Add: Accruals for UCC professionals  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	UCC lead counsel  	-	-	43	43	43	26	26	26	26	25	25	25	20	 	-	 	328
	UCC local counsel  	-	-	-	-	-	-	-	-	-	-	-	-	-	 	-	 	-
	Subtotal accruals for UCC professionals  	-	-	43	43	43	26	26	26	26	25	25	25	20	 	-	 	328
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Add: Accruals for Ad Hoc Equity Committee 3  	-	-	-	-	-	17	17	17	17	17	17	17	17	 	-	 	135
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total accruals  	488	190	219	234	278	207	225	205	286	192	192	207	296	 	-	 	3,218
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Subtract: Payments to Debtor professionals  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Debtor lead counsel  	-	-	-	-	-	-	-	-	-	(51)	(234)	-	-	 	(577)	 	(862)
	Debtor local counsel  	-	-	-	-	-	-	-	-	-	(15)	(61)	-	-	 	(199)	 	(275)
	CRO and additional personnel  	-	-	-	-	(170)	(48)	(37)	(42)	(32)	(37)	(22)	(22)	(26)	 	(28)	 	(465)
	Investment banker  	-	-	-	-	-	-	-	-	-	(45)	(45)	-	-	 	(130)	 	(220)
	Claims agent  	-	-	-	-	-	-	(19)	(55)	-	-	(50)	-	-	 	(40)	 	(164)
	U.S. Trustee  	-	-	-	-	-	-	-	-	-	-	-	-	-	 	(26)	 	(26)
	Subtotal payments to Debtor professionals  	-	-	-	-	(170)	(48)	(56)	(97)	(32)	(149)	(411)	(22)	(26)	 	(1,001)	 	(2,013)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Subtract: Payments to DIP-lender professionals  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	DIP lender lead counsel  	-	-	-	-	-	-	(156)	-	-	(99)	-	-	-	 	(292)	 	(547)
	DIP lender local counsel  	-	-	-	-	-	-	(38)	-	-	(27)	-	-	-	 	(55)	 	(120)
	Subtotal payments to DIP-lender professionals  	-	-	-	-	-	-	(194)	-	-	(126)	-	-	-	 	(347)	 	(667)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Subtract: Payments to UCC professionals  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	UCC lead counsel  	-	-	-	-	-	-	-	-	-	(104)	-	-	-	 	(224)	 	(328)
	UCC local counsel  	-	-	-	-	-	-	-	-	-	-	-	-	-	 	-	 	-
	Subtotal payments to UCC professionals  	-	-	-	-	-	-	-	-	-	(104)	-	-	-	 	(224)	 	(328)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Subtract: Payments to Ad Hoc Equity Committee  	-	-	-	-	-	-	-	-	-	-	-	-	-	 	(135)	 	(135)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Subtract: Retainers applied to Debtor-professional accruals	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Debtor lead counsel  	-	-	-	-	-	-	-	-	-	-	-	-	-	 	(60)	 	(60)
	Debtor local counsel  	-	-	-	-	-	-	-	-	-	-	-	-	-	 	-	 	-
	CRO and additional personnel  	-	-	-	-	-	-	-	-	-	-	-	-	-	 	(8)	 	(8)
	Investment banker  	-	-	-	-	-	-	-	-	-	-	-	-	-	 	-	 	-
	Claims agent  	-	-	-	-	-	-	-	-	-	-	-	-	-	 	(9)	 	(9)
	U.S. Trustee  	-	-	-	-	-	-	-	-	-	-	-	-	-	 	-	 	-
	Subtotal payments to Debtor professionals  	-	-	-	-	-	-	-	-	-	-	-	-	-	 	(76)	 	(76)
	Total payments  	-	-	-	-	(170)	(48)	(250)	(97)	(32)	(378)	(411)	(22)	(26)	 	(1,783)	 	(3,218)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ENDING BALANCE  	488	678	897	1,131	1,239	1,398	1,373	1,481	1,735	1,548	1,329	1,513	1,783	 	(0)	 	0

 

 

Notes

1. Includes $213K of pre-petition fees and expenses
carried forward to w/e 1/31 and paid in post-petition period

2. Includes $22K of pre-petition fees and expenses carried
forward to w/e 1/31 and paid in post-petition period

3. Fees and expenses to Ad Hoc Equity Committee are
subject to Court approval upon a motion under §503(b) of the U.S. Bankruptcy Code.

 

    	 	8.	 

     

    

 

EXHIBIT B

TERM SHEET

 

THIS TERM SHEET (THE “TERM
SHEET”) OUTLINES THE MATERIAL TERMS OF A PROPOSED RESTRUCTURING OF THE PREPETITION AND POST-PETITION SECURED DEBT, unsecured
debt AND EQUITY INTERESTS OF NUO THERAPEUTICS, INC. (THE “DEBTOR”), THE TERMS OF WHICH WILL BE EFFECTUATED PURSUANT
TO A PLAN OF REORGANIZATION (THE “PLAN”), WHICH PLAN WILL BE PROPOSED BY THE DEBTOR IN BANKRUPTCY CASE NUMBER 16-10192
(MFW), PENDING BEFORE THE HONORABLE MARY F. WALRATH IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE (“COURT”).

 

THIS TERM SHEET IS NOT AN OFFER OR
A SOLICITATION WITH RESPECT TO ANY SECURITIES OF THE DEBTOR, NOR IS IT A SOLICITATION OF THE ACCEPTANCE OR REJECTION OF A CHAPTER
11 PLAN FOR PURPOSES OF SECTIONS 1125 AND 1126 OF THE UNITED STATES BANKRUPTCY CODE (“CODE) ANY SUCH OFFER OR SOLICITATION
SHALL COMPLY WITH ALL APPLICABLE SECURITIES LAWS AND /OR PROVISIONS OF THE CODE. THIS TERM SHEET DOES NOT CONSTITUTE A COMMITMENT
TO PROVIDE DEBTOR-IN-POSSESSION OR EXIT FINANCING, AND ANY SUCH OBLIGATION WILL ARISE, IN ACCORDANCE WITH ITS TERM, ONLY UPON APPROVAL
OF THE COURT.

 

CHAPTER 11 PLAN TERM SHEET

 

This term sheet (“Term
Sheet”) describes the principal terms of a chapter 11 plan (“Plan”) for the estate of Nuo Therapeutics,
Inc. (“Debtor”) to be proposed by the Debtor with the support of Deerfield Mgmt, L.P., as DIP Agent, and the
lenders, Deerfield Private Design Fund II, L.P., Deerfield Private Design International II, L.P. and Deerfield Special Situations
Fund, L.P. (collectively referred to along with the DIP Agent as the “Lenders”), the Official Committee of Unsecured
Creditors (“UCC”) and the Ad Hoc Committee of Equity Holders (the “Ad Hoc Committee”).

 

The terms and conditions
set forth in this Term Sheet are meant to be part of a comprehensive compromise, each element of which is consideration for the
other elements and an integral aspect of the proposed Plan.

 

		I.	DEFINITIONS

 

Capitalized terms used
herein, unless otherwise defined herein, shall have the meanings provided in the Senior Secured Superpriority Debtor-in-Possession
Credit Agreement dated as of January 28, 2016 (“DIP Loan Agreement”) between the Debtor, on the one hand, and the DIP
Agent and Lenders, on the other hand.

 

“Causes of
Action” means any and all actions, claims, rights, defenses, third-party claims, damages, executions, demands, cross-claims,
counterclaims, suits, choses in action, controversies, agreements, promises, rights to legal remedies, rights to equitable remedies,
rights to payment and claims whatsoever, whether known, unknown, reduced to judgment, not reduced to judgment, liquidated, unliquidated,
fixed, contingent, matured, unmatured, disputed, undisputed, secured or unsecured and whether asserted or assertable directly,
indirectly or derivatively, at law, in equity or otherwise, accruing to the Debtors or the Estate, including, but not limited to,
any and all avoidance actions (“Avoidance Actions”) pursuant to any applicable section of the Code, including, without
limitation, sections 544, 545, 547, 548, 549, 550, 551, 553(b) and/or 724(a) of the Code, and other similar state laws such as
fraudulent conveyance and preference statutes, arising from any transaction involving or concerning the Debtor or its Estate.

 

    	 	1	 

     

    

 

“Contracts”
means any agreement, contract, or lease between the Debtor and a third party, as may be supplemented from time to time prior to
the entry of the Plan Confirmation Order.

 

		II.	GENERAL TERMS

 

The Plan generally
provides for the reorganization of the Debtor (and the continuation of the Debtor's corporate existence whose securities are publicly
traded), and payment, on or after the effective date of the confirmed Plan (“Effective Date”), of all Administrative
Expenses, Priority Tax Claims, Unsecured Priority Claims and General Unsecured Claims (each as described below). It further provides
for the capitalization of a reorganized debtor (“Reorganized Debtor”).

 

		III.	TREATMENT OF CLAIMS AND INTERESTS UNDER THE PLAN

 

The Plan will classify
and provide treatment for claims (“Claims”) against and interests in the Debtor generally as described below.

 

	
        

        Class Description
	Summary of Class and Treatment under Plan

	
        Allowed Administrative Expenses:

        (Inclusive of UST fees payable per 28 U.S.C.
        § 1930; and fee claims of estate professionals, the Unsecured Creditors’ Committee and the Ad Hoc Committee, net of
        retainers; provided, however, that all requested professional fees and expenses incurred from the Petition Date through
        and including the Effective Date must be approved by the Court prior to disbursement on account of any such Claim.)

         
	
        Generally: Allowed Administrative
        Expense Claims: Except to the extent the holder agrees to other, lesser treatment, each holder of an Allowed Administrative Claim
        shall be paid cash in respect of such Claim equal to the unpaid portion of such Allowed Administrative Expense Claim. The Allowed
        Administrative Expense Claim shall be payable within the later of: (i) ten (10) days after the Effective Date, or (ii) ten (10)
        days after the date on which such Claim becomes an Allowed Administrative Expense.

         

        Statutory Fees: All fees payable
        pursuant to 28 U.S.C. § 1930 shall be paid in cash equal to the amount of such fees when due or no later than the Effective
        Date. Postpetition U.S. Trustee fees and post-confirmation reports shall be paid and filed as required by 28 U.S.C. § 1930
        until the Bankruptcy Case is closed, converted or dismissed, and failure to do either timely is a material default pursuant to
        Section 1112 of the Code.

         

        Professionals: Except to the extent
        the holder agrees to other, lesser treatment, all professionals or other entities requesting compensation or reimbursement of expenses
        pursuant to Sections 327, 328, 330, 331, 503(b) and 1102 of the Code (including any professional or entity requesting compensation
        for making a substantial contribution in the Bankruptcy Case), shall be paid cash, in respect of such Claim, equal to the unpaid
        portion of such Allowed Professional Fee and Expense Claim approved by the Court, limited to a cash amount as set forth
        in the Budget attached to the Final Order approving the DIP Loan Agreement; provided, however, that a Professional may seek payment
        above its budgeted amount if there are other non-Lender designated professional fee amounts available in the Budget

 

    	 	2	 

     

    

 

	 	
        not used by such non-Lender professionals
        or not otherwise allowed by the Court.

         

        In the event of a Successful Capital Raise
        (as defined below), the Allowed Professional Fee and Expense Claim of Gordian Group (exclusive of the monthly fee payable to Gordian
        in the Budget) in the amount of $400,000 (with Lender responsible for funding $100,000 of this amount) shall be paid in full in
        cash within ten (10) days after the Effective Date. In the event of an Unsuccessful Capital Raise (as defined below), the Allowed
        Professional Fee and Expense Claim of Gordian Group (exclusive of the monthly fee payable to Gordian in the Budget) shall be limited
        to $200,000 and funded by Lender within ten (10) days after the Effective Date to enable the Reorganized Debtor to make such payment.

         

        In the event of a Successful Capital Raise,
        Debtor Professionals may seek payment of unpaid professional fees in excess of the amounts set forth in the Budget from the proceeds
        of such Successful Capital Raise, in the amount no greater than $150,000 in the aggregate for all such Debtor Professionals.

         

        Ad Hoc Committee: Fees and expenses
        of the Ad Hoc Committee and its professionals shall be deemed Allowed Administrative Expenses under Code sections 503(b)(3)(D)
        and 503(b)(4), subject to Court approval, and their method and amount of payment shall depend on whether the Capital Raise is successful:

         

        (a) In the event of
        a Successful Capital Raise, the fees and expenses of the Ad Hoc Committee and its professionals shall be paid in full following
        approval by the Court as follows: (i) out-of-pocket expenses of the Ad Hoc Committee members and its professionals shall be paid
        in cash; (ii) approved hourly fees of the Ad Hoc Committee’s professionals shall be paid through a combination of cash and
        the issuance of common stock of the Reorganized Debtor at the same per share price paid in the Capital Raise (plus a gross-up cash
        allowance for taxes payable on account of any equity issued), with the cash portion of such approved fee award paid at a maximum
        rate of $425 per hour and the remaining portion of such fee award paid in common stock of the Reorganized Debtor.

         

        (b) In the event of
        an Unsuccessful Capital Raise, the allowed fees and expenses of the Ad Hoc Committee and its professionals shall be paid following
        approval by the Court, but limited to a cash amount as set forth in the Budget attached to the Final Order approving the
        DIP Loan Agreement.

         

        The payment of an allowed Administrative
        Expense Claim

 

    	 	3	 

     

    

 

	 	
        shall be in full satisfaction, settlement
        release and discharge of, and in exchange for such Allowed Administrative Expense Claim.

         

        Estimated Percentage Recovery: 100%

         

	
        Allowed Priority Tax Claims:

        (Approximately $30,000.)

         
	
        Except to the extent the holder agrees
        to other, lesser treatment, each holder of an Allowed Priority Tax Claim shall be paid in cash, in respect of such Claim, equal
        to the unpaid portion of such Allowed Priority Tax Claim by the later of ten (10) days after (i) the Effective Date, (ii) the date
        on which such Claim becomes an Allowed Priority Tax Claim; or (iii) as otherwise provided under the Code. To the extent the holder
        of an Allowed Priority Tax Claim holds a lien to secure its claim under applicable state law, the holder of such Claim shall retain
        its lien until its Allowed Priority Tax Claim has been paid in full.

         

        The payment of an Allowed Priority Tax
        Claim shall be in full satisfaction, settlement, release and discharge of, and in exchange for such Claim.

         

        Estimated Percentage Recovery: 100%

         

	
        Allowed Class 1 Unsecured Priority
        Claims:

        (Approximately $150,000 - $250,000.)

         
	
        Except to the extent the holder agrees
        to other, lesser treatment, each holder of an Allowed Unsecured Priority Claim shall be paid in cash, in respect of such Claim,
        equal to the unpaid portion of such Allowed Unsecured Priority Claim within ten (10) days after (i) the Effective Date, or (ii)
        the date on which such Claim becomes an Allowed Unsecured Priority Claim.

         

        Class 1 Claims will be unimpaired and will
        not be entitled to vote on the Plan. The payment of an Allowed Unsecured Priority Claim shall be in full satisfaction, settlement,
        release and discharge of, and in exchange for such Claim.

         

        Estimated Percentage Recovery: 100%

         

	
        Allowed Class 2 General Unsecured
        Claims:

        (Approximately $2,000,000.)
	
        Within ten (10) days after (i) the Effective
        Date, or (ii) the date on which such Claim becomes an Allowed General Unsecured Claim, each holder of an Allowed General Unsecured
        Claim shall be paid as follows:

         

        (a) In the event of
        an Unsuccessful Capital Raise, the lesser of (i) an amount necessary to pay such Allowed Claim in full without post-petition interest
        or (ii) a pro rata share of a cash fund in an amount not to exceed $2,000,000;

         

        (b) In the event of
        a Successful Capital Raise:

         

        (i) if total Allowed
        Unsecured Claims are less than $2,000,000, an amount necessary to pay such Allowed Claim in full without post-petition interest;

         

 

    	 	4	 

     

    

 

	 	
        (ii) if total Allowed
        Unsecured Claims are between $2,000,000 and $3,000,000, a pro rata share of a cash fund in an amount not to exceed $2,250,000;

         

        (iii) if total Allowed
        Unsecured Claims are between $3,000,001 and $4,000,000, a pro rata share of a cash fund in an amount not to exceed $2,500,000;

         

        (iv) if total Allowed
        Unsecured Claims are greater than $4,000,001, a pro rata share of a cash fund in an amount not to exceed $2,750,000.

         

        Unsecured Creditor Oversight Committee:
        Promptly upon approval of the Final DIP financing order, the Debtor shall seek approval of a Motion Establishing A General Bar
        Date, Administrative Bar Date and Governmental Bar Date. To the extent the amount of the General Unsecured Claims filed against
        the Debtor’s estate exceeds $2.25 million, the Debtor shall fund and pay for the costs and expenses of an Unsecured Creditor
        Oversight Committee, not to exceed $125,000, which Committee shall have the right to: (i) review and reconcile all General Unsecured
        Claims filed against the Debtor’s estate; and (ii) object to the allowance of any General Unsecured Claim asserted against
        the Debtor’s estate. The Unsecured Creditor Oversight Committee shall consist of one representative from the Reorganized
        Debtor and two (2) representatives appointed by the UCC. In the event that total allowed General Unsecured Claims are reduced below
        $2.25 million, due to successful objections or otherwise, then the Unsecured Creditor Oversight Committee shall immediately be
        disbanded, and only reasonable costs and expenses incurred to that point shall be permitted.

         

        The payment of an Allowed General Unsecured
        Claim as set forth above shall be in full satisfaction, settlement, release and discharge of, and in exchange for such Claim

         

        Estimated Percentage Recovery: ~100%

         

	Allowed Class 3 Common Stock Equity Interests:	Scenario
                                         A:   Prior
                                         to the Effective Date, Debtor shall seek to raise not less than $10,500,000 in funding,
                                         which amount shall be available, along with proceeds of the DIP Loan Agreement (consistent
                                         with the Budget), to pay all amounts owing by the Debtor under the Plan (with up to $3,000,000
                                         of such $10,500,000 allowable in the form of backstop irrevocable capital call commitments
                                         from creditworthy obligors in the reasonable judgment of the Lenders), through a private
                                         placement of common stock of the Reorganized Debtor (the “Successful Capital
                                         Raise”).  Existing holders of common stock of the Debtor that are
                                         accredited investors shall have the opportunity, at the sole and absolute discretion
                                         of the Debtor, to participate in the 

 

    	 	5	 

     

    

 

	 	
        private placement. Binding commitments
        for a Successful Capital Raise must be received on or before the date that is five (5) days before the confirmation hearing and
        such commitments shall be fully funded (or secured in the case of a backstop commitment) no later than the Effective Date. If the
        Successful Capital Raise has been completed, existing holders of common stock in the Debtor will receive a percentage of the Reorganized
        Debtor’s common stock under the Plan on account of their existing common stock equity interests which percentage shall be
        set forth in the Disclosure Statement.

         

        Scenario B: If the Successful Capital
        Raise is not timely committed to and fully funded (i.e., the entire $10,500,000 funding including up to $3 million of backstop
        irrevocable capital call commitments) (an “Unsuccessful Capital Raise”), Lenders will receive 95% of the common
        equity of the Reorganized Debtor on the Effective Date in exchange for a portion of their Allowed Secured Claims and existing equity
        holders will own 5% of the common equity interests in the Reorganized Debtor on the Effective Date.

         

        Equity Interests are impaired. The distribution
        or retention of the common equity interests in the Reorganized Debtor to or by holders of Allowed Equity Interests shall be in
        full satisfaction, settlement, release and discharge of, and in exchange for such Equity Interests.

         

	
        Allowed Secured Class 4 Claims of
        Lenders:

        (Approximately $38.3 million.)
	
        Lenders shall have an allowed secured claim
        in the full amount of their pre-petition indebtedness. In full satisfaction of the Lenders secured claims under their prepetition
        facility and their secured administrative expenses under the DIP Loan Agreement (“Lenders’ Secured Claims”),
        Lenders will receive the following:

         

        In all events, whether under Scenario A
        or Scenario B below, on the Effective Date, and in exchange for $15 million of Lenders’ Secured Claims, Lenders will receive
        an assignment of all of Debtor’s rights, title and interest in the existing license agreement with Arthrex, Inc., all associated
        intellectual property owned by Debtor and licensed thereunder and all royalty and payment rights thereunder. The Debtor will enter
        into a transition services agreement with the Lenders as they may reasonably require in respect thereof.

         

        Scenario A (Successful Capital Raise):
        On the Effective Date, in exchange for the balance of Lenders’ Secured Claim, which shall include the amount funded by Lenders
        for the payment of Gordian, Lenders will receive non-convertible, no dividend, preferred equity interests in the Reorganized Debtor
        in the amount of such balance (estimated to be approximately $29.3 million), which shall

 

    	 	6	 

     

    

 

	 	
        have a liquidation preference senior to
        all other equity interests and such other customary terms acceptable to the Debtor and Lenders (the “Preferred Equity”),
        and Lenders shall receive no common stock or other equity interest.

         

        Scenario B (Unsuccessful Capital Raise):
        On the Effective Date, in exchange for such balance, the Lenders will receive an amount of common stock of the Reorganized Debtor
        such that Lenders will own 95% of the total common equity of the Reorganized Debtor and existing equity holders will receive or
        retain 5% of the common equity of the Reorganized Debtor.

         

        The distributions to the holders of the
        Allowed Lenders’ Secured Claims shall be in full satisfaction, settlement release and discharge of, and in exchange for such
        Allowed Lenders’ Secured Claims.

         

	
        Class 5 - Other Allowed Secured Claims:

        (Approximately $_______)
	
        Claims of creditors holding perfected and
        unavoidable first priority liens on specific items of collateral by virtue of a purchase money security interest or financing lease
        will, in full and final satisfaction of such allowed Other Secured Claim be treated in a manner to leave them unimpaired under
        section 1124 of the Code.

         

	
        Class 6 – Other Equity Interests:

         
	
        Class 6 consists of all ownership interests
        in the Debtor, except for Allowed Class 3 Common Stock Equity Interests, evidenced by any share certificate or other instrument,
        whether or not transferable or denominated "stock" (including, without limitation, interests denominated as common stock
        or preferred stock), or similar security, and any warrant or right (including a right to convert) to purchase or subscribe to any
        such ownership interest. Class 6 includes all Allowed Claims arising under section 510(b) of the Code, all Allowed Claims arising
        from the rejection of agreements granting such Class 6 Other Equity Interests (to the extent, if any, that they constitute executory
        contracts), and any Allowed Claims based on indemnification rights.

         

        Holders of Allowed Class 6 Other Equity
        Interests shall receive or retain no property or distributions on account of such Allowed Claims or Allowed Equity Interests. The
        Debtor is not soliciting the votes of Class 6 and shall seek confirmation of the Plan with respect to Class 6 under Code section
        1129(b).

         

 

    	 	7	 

     

    

 

	IV.	ADDITIONAL PROVISIONS OF THE PLAN

 

	
        Conditions Precedent to 

        Plan Effective Date
	
        The Plan shall contain conditions
        to the effectiveness of the Plan customary for chapter 11 plans of reorganization of this type, including:

         

        (a) the disclosure statement
        (“Disclosure Statement”) with respect to the Plan shall be in form and substance reasonably satisfactory to
        the Debtor, Lenders, UCC and Ad Hoc Committee (collectively, the “Parties”), to the extent permitted by the Court;
        and

         

        (b) an order confirming the
        Plan (“Plan Confirmation Order”), in form and substance reasonably satisfactory to the Parties, shall have been
        entered by the Court and shall not be subject to a stay.

	Rejection of Contracts and Unexpired Leases	The Plan shall provide that all Contracts and unexpired leases which qualify as “executory contracts” under section 365 of the Code shall be either assumed or rejected in accordance with Section 365, as determined by Debtor and Lenders in Scenario A (Successful Capital Raise) or by the Lenders in Scenario B (Unsuccessful Capital Raise) on or before the Effective Date.  Any allowed rejection damages claims arising from such rejection of executory contracts and unexpired leases will be treated and paid as Allowed General Unsecured Claims.
	
        Obligations

        of Reorganized Debtor
	
        Scenario A (Successful Capital
        Raise): The Reorganized Debtor shall have three or five board members. The Debtor will select (i) executive officers for the
        Reorganized Debtor and (ii) depending on whether the Reorganized Debtor has three or five board members, two or four board members
        of such board. Lenders will have sole discretion to select one of the board members, regardless of whether the Reorganized Debtor
        has three or five board members. David Jorden shall be designated by the Debtor as Chief Executive Officer of the Reorganized Debtor.

         

        Scenario B (Unsuccessful
        Capital Raise): The Lender will have sole discretion to select all board members and executive officers of the Reorganized
        Debtor.

         

        The identities of the proposed
        members of the Reorganized Debtor’s board and the proposed executive officers of the Reorganized Debtor under Scenario A
        and Scenario B shall be disclosed in sufficient time to satisfy the disclosure obligations in section 1129(a)(5). All existing
        members of the Debtor’s board of directors shall resign as of the Effective Date and be replaced by the newly selected members.
        The Debtor shall disclose the identity of any insider that will be employed or retained by

 

    	 	8	 

     

    

 

	 	
        the Reorganized Debtor, and
        the nature of any compensation for such insider in sufficient time to satisfy the disclosure obligations in section 1129(a)(5).

         

        In Scenario A, the Reorganized
        Debtor will not be entitled to make any dividends or distributions to common equity holders while the Preferred Equity to be issued
        to the Lenders is outstanding or incur any debt, other than ordinary course indebtedness attendant to its business purpose and
        other debt solely for working capital in an aggregate amount not to exceed $3,000,000.

         

        In either Scenario A or B, the
        Reorganized Debtor, among other things, may (a) sell, lease, license, and/or dispose of any of the assets in the ordinary course
        of business (other than the Causes of Action); (b) institute, prosecute, settle, compromise, abandon or release all Causes of Action
        (except that Avoidance Actions will be released); (c) prosecute objections to claims filed against the Debtors; (d) make distributions
        to the holders of allowed Claims in accordance with the Plan; (e) perform administrative services related to the implementation
        of the Plan; and (f) employ attorneys and other professionals, to assist in fulfilling the Reorganized Debtor’s obligations
        under the Plan and Code.

         

        The Reorganized Debtor shall
        have a President and any such other officers as the board of directors may determine. The President may be a board member. The
        President’s compensation shall be negotiated by the President and the board, but the Debtor shall make such timely disclosure
        as is required by section 1129(a)(5).

         

	Claims Resolution Process	
        The Reorganized Debtor and the
        Unsecured Creditor Oversight Committee (to the extent created) shall examine all Claims and will have the right, authority, power
        and discretion to: (i) file objections to the allowance, priority and classification of all Claims; (ii) litigate to judgment,
        settle or withdraw objections to Claims without any notice or approval of any other party or the Court; and (iii) request that
        the Court estimate any claim pursuant to 11 U.S.C. § 502(c). The deadline to file objections to Claims shall be sixty (60)
        days after the Effective Date, which date may be extended by the Reorganized Debtor with order of the Court.

         

	Releases	The Plan will provide, to the fullest extent permitted by law, for releases, exculpations and waivers of claims and Causes of Action, in favor of: (i) the Debtor and its existing and prior directors, officers, employees, agents, professionals, representatives, predecessors, successors, 

 

    	 	9	 

     

    

 

	 	
        subsidiaries and affiliates;
        (ii) the DIP Agent, Lenders and their directors, officers, employees, agents, professionals, representatives, predecessors, successors,
        subsidiaries and affiliates; (iii) the members of the UCC, including their directors, officers, employees, agents, professionals,
        successors subsidiaries and affiliates, in their capacity as members; (iv) the members of the Ad Hoc Committee, including their
        directors, officers, employees, agents , professionals, subsidiaries and affiliates, in their capacity as members; (v) the professionals
        retained in the Bankruptcy Case by the Parties; and (vi) persons subject to potential Avoidance Actions.

         

        The releases granted in (i)
        and (vi) above shall not extend to any person whose claim against or equity interest in the Debtor is disputed by any of the Parties.

         

	Governing Law	Except to the extent that the Code or other provisions of federal law are applicable, the rights and obligations arising under the Plan and any documents, agreements and instruments executed in connection with the Plan (except to the extent such documents, agreements and instruments designate otherwise) shall be governed by, and construed and enforced in accordance with, the internal laws of the State of Delaware (without reference to such state's law governing choice of law or forum).
	Documentation:	All documentation relating to the Plan, the Disclosure Statement, supplements thereto and motion papers and pleadings in support of the foregoing will be in form and substance satisfactory to the Parties
	Jurisdiction	The Court shall retain jurisdiction over the Reorganized Debtor following the Effective Date.
	Milestones	Request for final approval by the Court of (i) a DIP Loan Agreement and (ii) approval of a process for a consolidated Disclosure Statement and Plan confirmation hearing by March __, 2016.  Filing of a Plan and Disclosure Statement, consistent in all material respects with this Term Sheet and acceptable to the Parties by March __, 2016; mailing/solicitation of the Plan and related documents to creditors and equity holders the Parties by no later than March __, 2016. Entry of an order of the Court approving the Disclosure Statement and confirming the Plan by no later than April 25, 2016.  Effective Date and substantial consummation by no later than May 4, 2016.
	Agreement of Debtor, Lenders, UCC, Ad Hoc Equity Committee	The Debtor, Lenders, UCC and the Ad Hoc Equity Committee will state their agreement to the Term Sheet on 

 

    	 	10	 

     

    

 

	 	the record of the hearing scheduled for March 9, 2016 and such statement will bind the Parties to the fullest extent permitted by law and will constitute their agreement not to support any alternative plan without the consent of Lenders except, with respect to the Debtor and UCC, such agreement will be subject to their fiduciary duties. In the event that the Debtor and/or UCC are required by their fiduciary duties to support a proposal for an alternative plan, such proposal for an alternative plan shall provide for a third party to provide DIP financing immediately upon acceptance of such proposal which DIP financing is in an amount sufficient to fund the Debtor and to immediately pay the obligations under Lenders’ DIP Loan Agreement in full in cash.

 

    	 	11

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