Document:

Execution
Version

 

ASSET
PURCHASE AGREEMENT

 

By
and among

 

Regenerative
Medicine Solutions, LLC, and certain of its subsidiaries,

 

RMS
Shareholder, LLC,

 

Medovex
Corp.

 

and

 

RMS
Acquisition Corp.,

 

dated
as of

 

October
15, 2018

 

    	 

    	 

    

 

TABLE
OF CONTENTS

 

	ARTICLE
    I DEFINITIONS	1
	 	 
	ARTICLE
    II PURCHASE AND SALE	11
	 	 
	Section
    2.01	Purchase
    and Sale of Assets	11
	Section
    2.02	Excluded
    Assets	12
	Section
    2.03	Assumed
    Liabilities	13
	Section
    2.04	Excluded
    Liabilities	13
	Section
    2.05	Purchase
    Price	14
	Section
    2.06	Allocation
    of Purchase Price	16
	Section
    2.07	Tax
    Effect; Withholding Tax	16
	Section
    2.08	Third
    Party Consents	16
	 	 	 
	ARTICLE III CLOSING	17
	 	 	 
	Section
    3.01	Closing	17
	Section
    3.02	Closing
    Deliverables	17
	Section
    3.03	Liquidation	18
	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF SELLER	18
	 	 	 
	Section
    4.01	Organization
    and Qualification of Seller	18
	Section
    4.02	Authority
    of Seller	18
	Section
    4.03	No
    Conflicts; Consents	19
	Section
    4.04	Financial
    Statement	19
	Section
    4.05	Undisclosed
    Liabilities	20
	Section
    4.06	Absence
    of Certain Changes, Events and Condition	20
	Section
    4.07	Material
    Contracts	22
	Section
    4.08	Title
    to Purchased Assets	23
	Section
    4.09	Condition
    and Sufficiency of Assets	23
	Section
    4.10	Seller
    Leased Real Property	24
	Section
    4.11	Intellectual
    Property	25
	Section
    4.12	Accounts
    Receivable	26
	Section
    4.13	Insurance	26
	Section
    4.14	Legal
    Proceedings; Governmental Orders	27
	Section
    4.15	Compliance
    With Laws; Permits	27
	Section
    4.16	Environmental
    Matters	27
	Section
    4.17	Employee
    Benefit Matters	28
	Section
    4.18	Employment
    Matters	31
	Section
    4.19	Taxes	32
	Section
    4.20	Brokers	32
	Section
    4.21	Issuance
    of Exchange Shares	33

 

    	 	i	 

    	 

    

 

	ARTICLE V REPRESENTATIONS AND WARRANTIES OF MEDOVEX	33
	 	 	 
	Section
    5.01	Organization
    and Qualification of Buyer	33
	Section
    5.02	Authority
    of Buyer	33
	Section
    5.03	Capitalization	34
	Section
    5.04	Series
    C Preferred Stock of Medovex to be Delivered	35
	Section
    5.05	No
    Conflicts; Consents	35
	Section
    5.06	Brokers	35
	Section
    5.07	Legal
    Proceedings	36
	Section
    5.08	Financial
    Statement	36
	Section
    5.09	Undisclosed
    Liabilities	36
	Section
    5.10	Current
    Ratio	36
	Section
    5.11	Absence
    of Certain Changes, Events and Condition	37
	Section
    5.12	Material
    Contracts	38
	Section
    5.13	Medovex
    Leased Real Property	40
	Section
    5.14	Intellectual
    Property	41
	Section
    5.15	Accounts
    Receivable	42
	Section
    5.16	Insurance	43
	Section
    5.17	Compliance
    with Laws; Permits	43
	Section
    5.18	Employee
    Benefit Matters	44
	Section
    5.19	Employment
    Matters	45
	Section
    5.20	Taxes	47
	 	 	 
	ARTICLE VI COVENANTS	48
	 	 	 
	Section
    6.01	Conduct
    of Business Prior to the Closing	48
	Section
    6.02	Access
    to Information	48
	Section
    6.03	No
    Solicitation of Other Bids	49
	Section
    6.04	Notice
    of Certain Events	49
	Section
    6.05	Employees
    and Employee Benefits	50
	Section
    6.06	Confidentiality	51
	Section
    6.07	Non-Competition;
    Non-Solicitation	51
	Section
    6.08	Approvals
    and Consents	53
	Section
    6.09	Securities
    Laws	53
	Section
    6.10	Books
    and Records	54
	Section
    6.11	Medovex
    Board of Directors	55
	Section
    6.12	Management
    Employment Agreement	55
	Section
    6.13	Closing
    Conditions	55
	Section
    6.14	Public
    Announcements	55
	Section
    6.15	Bulk
    Sales Laws	55
	Section
    6.16	Receivables	55
	Section
    6.17	Transfer
    Taxes	55
	Section
    6.18	Tax
    Clearance Certificates	56
	Section
    6.19	Further
    Assurances	56
	Section
    6.20	Employee
    Tax Withholding and Reporting	56
	 	 	 
	ARTICLE VII CONDITIONS TO CLOSING	56
	 	 	 
	Section
    7.01	Conditions
    to Obligations of All Parties	56
	Section
    7.02	Conditions
    to Obligations of Buyer	57
	Section
    7.03	Conditions
    to Obligations of Seller	58

 

    	 	ii	 

    	 

    

 

	ARTICLE VIII INDEMNIFICATION	60
	 	 	 
	Section
    8.01	Survival	60
	Section
    8.02	Indemnification
    By Seller	61
	Section
    8.03	Indemnification
    By Buyer	61
	Section
    8.04	Certain
    Limitations	62
	Section
    8.05	Indemnification
    Procedures	62
	Section
    8.06	Payments	64
	Section
    8.07	Exclusive
    Source of Recovery	64
	Section
    8.08	Tax
    Treatment of Indemnification Payments	65
	Section
    8.09	Effect
    of Investigation	65
	Section
    8.10	Exclusive
    Remedies	66
	 	 	 
	ARTICLE IX TERMINATION	66
	 	 	 
	Section
    9.01	Termination	66
	Section
    9.02	Effect
    of Termination	67
	 	 	 
	ARTICLE X MISCELLANEOUS	67
	 	 	 
	Section
    10.01	Expenses	67
	Section
    10.02	Notices	67
	Section
    10.03	Interpretation	68
	Section
    10.04	Headings	69
	Section
    10.05	Severability	69
	Section
    10.06	Entire
    Agreement	69
	Section
    10.07	Successors
    and Assigns	69
	Section
    10.08	No
    Third-party Beneficiaries	69
	Section
    10.09	Amendment
    and Modification; Waiver	69
	Section
    10.10	Governing
    Law; Submission to Jurisdiction; Waiver of Jury Trial	70
	Section
    10.11	Specific
    Performance	71
	Section
    10.12	Counterparts	71

 

    	 	iii	 

    	 

    

 

ASSET
PURCHASE AGREEMENT

 

This
Asset Purchase Agreement (this “Agreement”), dated as of October 15, 2018, is entered into by and among Regenerative
Medicine Solutions LLC, a Delaware limited liability company (“RMS”), RMS Shareholder, LLC, a Delaware limited
liability company and the sole member of RMS (“RMS Shareholder”), Lung Institute LLC, a Delaware limited liability
company (“Lung Institute”), RMS Lung Institute Management LLC, a Delaware limited liability company (“RMS
Management”), Cognitive Health Institute Tampa, LLC, a Delaware limited liability company (“CHIT”
and, together with Lung Institute and RMS Management, the “Operating Subsidiaries”), Medovex Corp., a Nevada
corporation (“Medovex”) and RMS Acquisition Corp., a Nevada corporation (“Buyer”). For purposes
of this Agreement, “Seller” shall mean individually and collectively RMS and the Operating Subsidiaries, together
with any other entity selling or assigning assets of the Seller Business pursuant to this Agreement.

 

RECITALS

 

WHEREAS,
Seller is engaged in the business of (a) developing and marketing a cellular therapy protocol currently used for the treatment
of chronic lung diseases, and (b) marketing, patient relations and business intelligence solutions for brands in the field of
regenerative medicine (the “Seller Business”);

 

WHEREAS,
Medovex, through its wholly owned subsidiaries, is in the business of acquiring and developing a diversified portfolio of medical
technology products (the “Medovex Business”);

 

WHEREAS,
Seller wishes to sell and assign to Buyer, and Buyer wishes to purchase and assume from Seller, substantially all the assets,
and certain specified liabilities, of the Seller Business, subject to the terms and conditions set forth herein; and

 

WHEREAS,
Seller and Buyer intend that the transaction contemplated by this Agreement be treated as a tax-deferred exchange under the RMS
plan of reorganization pursuant to the provisions of Section 368(a)(1)(C) and 368(a)(2)(C) of the Internal Revenue Code of 1986,
as amended (the “Code”), on the terms and conditions set forth in this Agreement;

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE
I

DEFINITIONS

 

The
following terms have the meanings specified or referred to in this ARTICLE I:

 

“Accounts
Receivable” has the meaning set forth in Section 2.01(a).

 

“Acquisition
Proposal” has the meaning set forth in Section 6.03(a).

 

    	 	1	 

     

    

 

“Action”
means any claim, action, cause of action, demand, lawsuit, arbitration, inquiry, audit, notice of violation, proceeding, litigation,
citation, summons, subpoena or investigation of any nature, civil, criminal, administrative, regulatory or otherwise, whether
at law or in equity.

 

“Additional
Exchange Shares” has the meaning set forth in Section 2.05(f).

 

“Additional
Share Issue Dates” has the meaning set forth in Section 2.05(e).

 

“Affiliate”
of a Person means any other Person that directly or indirectly, through one or more intermediaries, controls, is controlled by,
or is under common control with, such Person. The term “control” (including the terms “controlled by”
and “under common control with”) means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Agreement”
has the meaning set forth in the preamble.

 

“Ancillary
Documents” means the Bill of Sale, the Assignment and Assumption Agreement, Assignment and Assumption of Leases, the
Management Employment Agreement, the Voting Agreement, and the other agreements, instruments and documents required to be delivered
at the Closing.

 

“Assigned
Contracts” has the meaning set forth in Section 2.01(b).

 

“Assignment
and Assumption Agreement” has the meaning set forth in Section 3.02(a)(ii).

 

“Assignment
and Assumption of Leases” has the meaning set forth in Section 3.02(a)(iii)

 

“Assumed
Liabilities” has the meaning set forth in Section 2.03.

 

“Audited
Medovex Financial Statements” has the meaning set forth in Section 4.04.

 

“Audited
RMS Financial Statements” has the meaning set forth in Section 4.04.

 

“Basket”
has the meaning set forth in Section 8.04(a).

 

“Bill
of Sale” has the meaning set forth in Section 3.02(a)(i).

 

“Books
and Records” has the meaning set forth in Section 2.01(h).

 

“Business
Day” means any day except Saturday, Sunday or any other day on which commercial banks located in Florida are authorized
or required by Law to be closed for business.

 

“Buyer”
has the meaning set forth in the preamble.

 

“Buyer
Closing Certificate” has the meaning set forth in Section 7.03(f).

 

    	 	2	 

     

    

 

“Buyer
Fundamental Reps” has the meaning set forth in Section 8.01.

 

“Buyer
Indemnitees” has the meaning set forth in Section 8.02.

 

“CHIT”
has the meaning set forth in the preamble.

 

“Closing”
has the meaning set forth in Section 3.01.

 

“Closing
Date” has the meaning set forth in Section 3.01.

 

“Code”
has the meaning set forth in the preamble.

 

“Common
Stock” has the meaning set forth in Section 5.03.

 

“Contracts”
means all contracts, leases, deeds, mortgages, licenses, instruments, notes, commitments, undertakings, indentures, joint ventures
and all other agreements, commitments and legally binding arrangements, whether written or oral.

 

“Direct
Claim” has the meaning set forth in Section 8.05(c).

 

“Disclosure
Schedules” means the Disclosure Schedules delivered by Seller and Medovex concurrently with the execution and delivery
of this Agreement.

 

“Encumbrance”
means any charge, claim, community property interest, pledge, condition, equitable interest, lien (statutory or other), option,
security interest, mortgage, easement, encroachment, right of way, right of first refusal, or restriction of any kind, including
any restriction on use, voting, transfer, receipt of income or exercise of any other attribute of ownership.

 

“Environmental
Claim” means any Action, Governmental Order, lien, fine, penalty, or, as to each, any settlement or judgment arising
therefrom, by or from any Person alleging liability of whatever kind or nature (including liability or responsibility for the
costs of enforcement proceedings, investigations, cleanup, governmental response, removal or remediation, natural resources damages,
property damages, personal injuries, medical monitoring, penalties, contribution, indemnification and injunctive relief) arising
out of, based on or resulting from: (a) the presence, Release of, or exposure to, any Hazardous Materials; or (b) any actual or
alleged non-compliance with any Environmental Law or term or condition of any Environmental Permit.

 

“Environmental
Law” means any applicable Law, and any Governmental Order or binding agreement with any Governmental Authority: (a)
relating to pollution (or the cleanup thereof) or the protection of natural resources, endangered or threatened species, human
health or safety, or the environment (including ambient air, soil, surface water or groundwater, or subsurface strata); or (b)
concerning the presence of, exposure to, or the management, manufacture, use, containment, storage, recycling, reclamation, reuse,
treatment, generation, discharge, transportation, processing, production, disposal or remediation of any Hazardous Materials.

 

    	 	3	 

     

    

 

“Environmental
Notice” means any written directive, notice of violation or infraction, or notice respecting any Environmental Claim
relating to actual or alleged non-compliance with any Environmental Law or any term or condition of any Environmental Permit.

 

“Environmental
Permit” means any Permit, letter, clearance, consent, waiver, closure, exemption, decision or other action required
under or issued, granted, given, authorized by or made pursuant to Environmental Law.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

 

“ERISA
Affiliate” means all employers (whether or not incorporated) that would be treated together with Seller or any of its
Affiliates, or Medovex and any of its Affiliates, as applicable, as a “single employer” within the meaning of Section
414 of the Code or Section 4001 of ERISA.

 

“Excluded
Assets” has the meaning set forth in Section 2.02.

 

“Excluded
Contracts” has the meaning set forth in Section 2.02(a).

 

“Excluded
Liabilities” has the meaning set forth in Section 2.04.

 

“FIRPTA
Certificate” has the meaning set forth in Section 7.02(k).

 

“GAAP”
means United States generally accepted accounting principles in effect from time to time.

 

“Governmental
Authority” means any federal, state, local or foreign government or political subdivision thereof, or any agency or
instrumentality of such government or political subdivision, or any self-regulated organization or other non-governmental regulatory
authority or quasi-governmental authority (to the extent that the rules, regulations or orders of such organization or authority
have the force of Law), or any arbitrator, court or tribunal of competent jurisdiction.

 

“Governmental
Order” means any order, writ, judgment, injunction, decree, stipulation, determination or award entered by or with any
Governmental Authority.

 

“Hazardous
Materials” means: (a) any material, substance, chemical, waste, product, derivative, compound, mixture, solid, liquid,
mineral or gas, in each case, whether naturally occurring or manmade, that is hazardous, acutely hazardous, toxic, or words of
similar import or regulatory effect under Environmental Laws; and (b) any petroleum or petroleum-derived products, radon, radioactive
materials or wastes, asbestos in any form, lead or lead-containing materials, urea formaldehyde foam insulation and polychlorinated
biphenyls.

 

“Indemnified
Party” has the meaning set forth in Section 8.05.

 

“Indemnifying
Party” has the meaning set forth in Section 8.05.

 

    	 	4	 

     

    

 

“Intellectual
Property” means any and all rights in, arising out of, or associated with any of the following in any jurisdiction throughout
the world: (a) issued patents and patent applications (whether provisional or non-provisional), including divisionals, continuations,
continuations-in-part, substitutions, reissues, reexaminations, extensions, or restorations of any of the foregoing, and other
Governmental Authority-issued indicia of invention ownership (including certificates of invention, petty patents, and patent utility
models) (“Patents”); (b) trademarks, service marks, brands, certification marks, logos, trade dress, trade
names, and other similar indicia of source or origin, together with the goodwill connected with the use of and symbolized by,
and all registrations, applications for registration, and renewals of, any of the foregoing (“Trademarks”);
(c) copyrights and works of authorship, whether or not copyrightable, and all registrations, applications for registration, and
renewals of any of the foregoing (“Copyrights”); (d) internet domain names and social media account or user
names (including “handles”), whether or not Trademarks, all associated web addresses, URLs, websites and web pages,
social media accounts and pages, and all content and data thereon or relating thereto, whether or not Copyrights; (e) mask works,
and all registrations, applications for registration, and renewals thereof; (f) industrial designs, and all Patents, registrations,
applications for registration, and renewals thereof; (g) trade secrets, know-how, inventions (whether or not patentable), discoveries,
improvements, technology, business and technical information, databases, data compilations and collections, tools, methods, processes,
techniques, and other confidential and proprietary information and all rights therein (“Trade Secrets”); (h)
computer programs, operating systems, applications, firmware and other code, including all source code, object code, application
programming interfaces, data files, databases, protocols, specifications, and other documentation thereof (“Software”);
and (i) rights of publicity; and (j) all other intellectual or industrial property and proprietary rights.

 

“Intellectual
Property Agreements” means all licenses, sublicenses, consent to use agreements, settlements, coexistence agreements,
covenants not to sue, waivers, releases, permissions and other Contracts, whether written or oral, relating to any Intellectual
Property that is used or held for use in the conduct of the Seller Business or Medovex Business, as applicable, as currently conducted
or proposed to be conducted to which Seller or a Medovex Member is a party, beneficiary or otherwise bound.

 

“Intellectual
Property Assets” means all Intellectual Property that is owned and used or held for use in the conduct of the Seller
Business or Medovex Business, as applicable, as currently conducted or proposed to be conducted, together with all (a) royalties,
fees, income, payments, and other proceeds now or hereafter due or payable to Seller or Medovex Member, as applicable, with respect
to such Intellectual Property; and (b) claims and causes of action with respect to such Intellectual Property, whether accruing
before, on, or after the date hereof/accruing on or after the date hereof, including all rights to and claims for damages, restitution,
and injunctive and other legal or equitable relief for past, present, or future infringement, misappropriation, or other violation
thereof.

 

“Intellectual
Property Registrations” means all Intellectual Property Assets that are subject to any issuance, registration, or application
by or with any Governmental Authority or authorized private registrar in any jurisdiction, including issued Patents, registered
Trademarks, domain names and Copyrights, and pending applications for any of the foregoing.

 

    	 	5	 

     

    

 

“Interim
Medovex Balance Sheet” has the meaning set forth in Section 5.08.

 

“Interim
Medovex Balance Sheet Date” has the meaning set forth in Section 5.08.

 

“Interim
RMS Balance Sheet” has the meaning set forth in Section 4.04.

 

“Interim
RMS Balance Sheet Date” has the meaning set forth in Section 4.04.

 

“Interim
Medovex Financial Statements” has the meaning set forth in Section 5.08.

 

“Interim
RMS Financial Statements” has the meaning set forth in Section 4.04.

 

“Law”
means any statute, law, ordinance, regulation, rule, code, order, constitution, treaty, common law, judgment, decree, other requirement
or rule of law of any Governmental Authority.

 

“Liabilities”
means liabilities, obligations or commitments of any nature whatsoever, asserted or unasserted, known or unknown, absolute or
contingent, accrued or unaccrued, matured or unmatured or otherwise.

 

“Losses”
means losses, damages, liabilities, deficiencies, Actions, judgments, interest, awards, penalties, fines, costs or expenses of
whatever kind, including reasonable attorneys’ fees and the cost of enforcing any right to indemnification hereunder and
the cost of pursuing any insurance providers; provided, however, that “Losses” shall not include punitive damages,
except to the extent actually awarded to a Governmental Authority or other third party.

 

“Lung
Institute” has the meaning set forth in the preamble.

 

“Management
Employment Agreement” has the meaning set forth in Section 6.12.

 

“Material
Adverse Effect” means any event, occurrence, fact, condition or change that is, or could reasonably be expected to become,
individually or in the aggregate, materially adverse to (a) the business, results of operations, condition (financial or otherwise)
or assets of the Seller Business or Medovex Business, as applicable, (b) in the case of Seller, the value of the Purchased Assets,
or (c) the ability of Seller or Buyer, as applicable, to consummate the transactions contemplated hereby on a timely basis; provided,
however, that “Material Adverse Effect” shall not include any event, occurrence, fact, condition or change, directly
or indirectly, arising out of or attributable to: (i) general economic or political conditions; (ii) conditions generally affecting
the industries in which the Seller Business or Medovex Business, as applicable, operates; (iii) any changes in financial or securities
markets in general; (iv) acts of war (whether or not declared), armed hostilities or terrorism, or the escalation or worsening
thereof; (v) any action required or permitted by this Agreement, except pursuant to Section 4.03, Section 5.05, and Section 6.08;
(vi) any changes in applicable Laws or accounting rules, including GAAP; or (vii) the public announcement, pendency or completion
of the transactions contemplated by this Agreement; provided further, however, that any event, occurrence, fact, condition
or change referred to in clauses (i) through (iv) immediately above shall be taken into account in determining whether a Material
Adverse Effect has occurred or could reasonably be expected to occur to the extent that such event, occurrence, fact, condition
or change has a disproportionate effect on the Seller Business or Medovex Business, as applicable, compared to other participants
in the industries in which such business operates.

 

    	 	6	 

     

    

 

“Medovex”
has the meaning set forth in the preamble.

 

“Medovex
Balance Sheet” has the meaning set forth in Section 5.08.

 

“Medovex
Balance Sheet Date” has the meaning set forth in Section 5.08.

 

“Medovex
Benefit Plan” means any pension, benefit, retirement, compensation, employment, consulting, profit-sharing, deferred
compensation, incentive, bonus, performance award, phantom equity, stock or stock-based, change in control, retention, severance,
vacation, paid time off (PTO), medical, vision, dental, disability, welfare, Code Section 125 cafeteria, fringe-benefit and other
similar agreement, plan, policy, program or arrangement (and any amendments thereto), in each case whether or not reduced to writing
and whether funded or unfunded, including each “employee benefit plan” within the meaning of Section 3(3) of ERISA,
whether or not tax-qualified and whether or not subject to ERISA, which is or has been maintained, sponsored, contributed to,
or required to be contributed to by any Medovex Member for the benefit of any current or former employee, officer, director, retiree,
independent contractor or consultant of any Medovex Member or any spouse or dependent of such individual, or under which any Medovex
Member or any of its ERISA Affiliates has or may have any Liability, or with respect to which Seller or any of its Affiliates
would reasonably be expected to have any Liability, contingent or otherwise.

 

“Medovex
Business” has the meaning set forth in the recitals.

 

“Medovex
Financial Statements” has the meaning set forth in Section 5.08.

 

“Medovex
Insurance Policies” has the meaning set forth in Section 5.17.

 

“Medovex
Leased Real Property” has the meaning set forth in Section 5.14(a).

 

“Medovex
Leases” has the meaning set forth in Section 5.14(a).

 

“Medovex
Material Contracts” has the meaning set forth in Section 5.13(a).

 

“Medovex
Member” means Medovex, Buyer, and any other Person that is either owned or controlled, directly or indirectly through
one or more other Persons, by Medovex.

 

“Medovex’s
Knowledge” or any other similar knowledge qualification, means the actual knowledge of any officer of Medovex, after
reasonable inquiry.

 

“Multiemployer
Plan” has the meaning set forth in Section 4.17(c).

 

“New
Securities” has the meaning set forth in Section 2.05(f)(i).

 

“Operating
Subsidiaries” has the meaning set forth in the preamble.

 

    	 	7	 

     

    

 

“Permits”
means all permits, licenses, franchises, approvals, authorizations, registrations, certificates, variances and similar rights
obtained, or required to be obtained, from Governmental Authorities.

 

“Permitted
Encumbrances” means:

 

(a)
liens for Taxes not yet due and payable;

 

(b)
mechanics’, carriers’, workmen’s, repairmen’s or other like liens arising or incurred in the ordinary
course of business consistent with past practice with amounts that are not delinquent and which are not, individually or in the
aggregate, material to the business or assets of the obligor;

 

(c)
easements, rights of way, zoning ordinances and other similar encumbrances affecting leased real property which are not, individually
or in the aggregate, material to the business or assets of the obligor, which do not prohibit or interfere with the current operation
of the subject leased real property; or

 

(d)
liens arising under original purchase price conditional sales contracts and equipment leases with third parties entered into in
the ordinary course of business consistent with past practice which are not, individually or in the aggregate, material to the
business or the assets of the obligor.

 

“Person”
means an individual, corporation, partnership, joint venture, limited liability company, Governmental Authority, unincorporated
organization, trust, association or other entity.

 

“Pre-Closing
Tax Period” means any taxable period ending on or before the Closing Date and, with respect to any taxable period beginning
before and ending after the Closing Date, the portion of such taxable period ending on and including the Closing Date.

 

“Purchase
Price” has the meaning set forth in Section 2.05.

 

“Purchased
Assets” has the meaning set forth in Section 2.01.

 

“Qualified
Medovex Benefit Plan” has the meaning set forth in Section 5.19(c).

 

“Qualified
Seller Benefit Plan” has the meaning set forth in Section 4.17(c).

 

“Release”
means any actual or threatened release, spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping,
leaching, dumping, abandonment, disposing or allowing to escape or migrate into or through the environment (including, without
limitation, ambient air (indoor or outdoor), surface water, groundwater, land surface or subsurface strata or within any building,
structure, facility or fixture).

 

“Representative”
means, with respect to any Person, any and all directors, officers, employees, consultants, financial advisors, counsel, accountants
and other agents of such Person.

 

    	 	8	 

     

    

 

“Restricted
Period” has the meaning set forth in Section 6.07(a).

 

“Restricted
Persons” has the meaning set forth in Section 6.07(a).

 

“RMS”
has the meaning set forth in the preamble.

 

“RMS
Balance Sheet” has the meaning set forth in Section 4.04.

 

“RMS
Balance Sheet Date” has the meaning set forth in Section 4.04.

 

“RMS
Financial Statements” has the meaning set forth in Section 4.04.

 

“RMS
Insurance Policies” has the meaning set forth in Section 4.13.

 

“RMS
Management” has the meaning set forth in the preamble.

 

“RMS
Material Contracts” has the meaning set forth in Section 4.07(a).

 

“RMS
Shareholder” has the meaning set forth in the preamble.

 

“Securities
Act” has the meaning set forth in Section 4.21.

 

“Seller”
has the meaning set forth in the preamble.

 

“Seller
Benefit Plan” means any pension, benefit, retirement, compensation, employment, consulting, profit-sharing, deferred
compensation, incentive, bonus, performance award, phantom equity, stock or stock-based, change in control, retention, severance,
vacation, paid time off (PTO), medical, vision, dental, disability, welfare, Code Section 125 cafeteria, fringe-benefit and other
similar agreement, plan, policy, program or arrangement (and any amendments thereto), in each case whether or not reduced to writing
and whether funded or unfunded, including each “employee benefit plan” within the meaning of Section 3(3) of ERISA,
whether or not tax-qualified and whether or not subject to ERISA, which is or has been maintained, sponsored, contributed to,
or required to be contributed to by Seller for the benefit of any current or former employee, officer, director, retiree, independent
contractor or consultant of Seller or any spouse or dependent of such individual, or under which Seller or any of its ERISA Affiliates
has or may have any Liability, or with respect to which Buyer or any of its Affiliates would reasonably be expected to have any
Liability, contingent or otherwise.

 

“Seller
Business” has the meaning set forth in the recitals.

 

“Seller
Closing Certificate” has the meaning set forth in Section 7.02(j).

 

“Seller
Fundamental Reps” has the meaning set forth in Section 8.01.

 

“Seller
Indemnitees” has the meaning set forth in Section 8.03.

 

“Seller’s
Knowledge” or any other similar knowledge qualification means the actual knowledge of any officer of Seller, after reasonable
inquiry.

 

    	 	9	 

     

    

 

“Series
B Preferred Stock” has the meaning set forth in Section 5.03(a).

 

“Series
C Preferred Stock” has the meaning set forth in Section 5.03(a).

 

“Single
Employer Plan” has the meaning set forth in Section 4.17(c).

 

“Seller
Leased Real Property” has the meaning set forth in Section 4.10(a).

 

“Seller
Leases” has the meaning set forth in Section 4.10(a).

 

“Tampa
Litigation” means collectively, (a) that certain Case No. 8:17-cv-3113-7-23-MAP styled Tammy Rivero and Howard Bennett
v. Lung Institute, LLC, filed in the U.S. District Court, Middle District of Florida, Tampa Division, (b) that certain case
styled Charles Dolson v. Regenerative Medicine Solutions, LLC, Mark Flood, DO, Michael Perry, MD, filed in the Circuit
Court of the Thirteenth Judicial Circuit in and for Hillsborough County, Florida, Civil Division, (c) claims alleged against Lung
Institute, LLC and Regenerative Medicine Solutions, LLC by Joseph Conti, Bill Boyuk, Beverly McCord, Robert Worrell, Evelyn Taylor,
Robert Shafer, David Piccari, and David Mansell all by separate letters dated August 6, 2018, each from Vinson Law, and (d) any
subsequent Action resulting from, related to or in connection with said litigation or any facts or circumstances that gave rise
to said litigation.

 

“Tampa
Litigation Resolution Date” has the meaning set forth in Section 6.10(a).

 

“Tangible
Personal Property” has the meaning set forth in Section 2.01(d).

 

“Taxes”
means all federal, state, local, foreign and other income, gross receipts, sales, use, production, ad valorem, transfer, documentary,
franchise, registration, profits, license, lease, service, service use, withholding, payroll, employment, unemployment, estimated,
excise, severance, environmental, stamp, occupation, premium, property (real or personal), real property gains, windfall profits,
customs, duties or other taxes, fees, assessments or charges of any kind whatsoever, together with any interest, additions or
penalties with respect thereto and any interest in respect of such additions or penalties.

 

“Tax
Clearance Certificate” has the meaning set forth in Section 6.18.

 

“Tax
Return” means any return, declaration, report, claim for refund, information return or statement or other document relating
to Taxes, including any schedule or attachment thereto, and including any amendment thereof.

 

“Territory”
means the United States.

 

“Third
Party Claim” has the meaning set forth in Section 8.05(a).

 

“Union”
has the meaning set forth in Section 4.18(b).

 

“Voting
Agreement” has the meaning set forth in Section 3.02(b)(v).

 

    	 	10	 

     

    

 

“WARN
Act” means the federal Worker Adjustment and Retraining Notification Act of 1988, and similar state, local and foreign
laws related to plant closings, relocations, mass layoffs and employment losses.

 

“Warrants”
has the meaning set forth in Section 5.03(a)(v).

 

ARTICLE
II

PURCHASE AND SALE

 

Section
2.01 Purchase and Sale of Assets. Subject to the terms and conditions set forth herein, at the Closing, each Seller shall
sell, assign, transfer, convey and deliver to Buyer, and Buyer shall purchase from each Seller, free and clear of any Encumbrances
other than Permitted Encumbrances, all of Sellers’ right, title and interest in and good and marketable title to all of
the assets, properties and rights of every kind and nature, whether real, personal or mixed, tangible or intangible (including
goodwill), wherever located and whether now existing or hereafter acquired (other than the Excluded Assets), which relate to,
or are used or held for use in connection with, the Seller Business (collectively, the “Purchased Assets”),
including, without limitation, the following:

 

(a)
all accounts or notes receivable held by Seller, and any security, claim, remedy or other right related to any of the foregoing
(“Accounts Receivable”);

 

(b)
all Contracts, including Intellectual Property Agreements, set forth on Schedule 2.01(b) attached hereto (the “Assigned
Contracts”);

 

(c)
all Intellectual Property Assets;

 

(d)
all furniture, fixtures, equipment, machinery, tools, vehicles, office equipment, supplies, computers, telephones and other tangible
personal property (the “Tangible Personal Property”);

 

(e)
all Seller Leased Real Property;

 

(f)
all Permits, including Environmental Permits, to the extent transferable, which are held by Seller and required for the conduct
of the Seller Business as currently conducted or for the ownership and use of the Purchased Assets, including, without limitation,
those listed on Section 4.16 of the Disclosure Schedules;

 

(g)
all rights to recover under any Actions of any nature available to or being pursued by Seller to the extent related to the Seller
Business, the Purchased Assets or the Assumed Liabilities, whether arising by way of counterclaim or otherwise; provided, however,
such Actions shall not include any Actions attributable to the Tampa Litigation;

 

(h)
all prepaid expenses, credits, advance payments, claims, security, refunds, rights of recovery, rights of set-off, rights of recoupment,
deposits, charges, sums and fees (excluding any such item relating to the payment of Taxes);

 

    	 	11	 

     

    

 

(i)
all of Seller’s rights under warranties, indemnities and all similar rights against third parties to the extent related
to any Purchased Assets;

 

(j)
except as provided in Section 2.02(h), all insurance benefits, including rights and proceeds, arising from or relating to the
Seller Business, the Purchased Assets or the Assumed Liabilities;

 

(k)
originals, or where not available, copies, of all books and records, including, but not limited to, financial and accounting records,
equipment maintenance files, patient information (to the extent lawfully transferable), quality control records and procedures,
patient complaints and inquiry files, research and development files, all correspondence with any Governmental Authority, sales
and marketing materials, strategic plans, and records relating to the Intellectual Property Assets and the Intellectual Property
Agreements (“Books and Records”); and

 

(l)
the name “Lung Institute” and all derivatives thereof, and all goodwill and the going concern value of the Seller
Business.

 

Section
2.02 Excluded Assets. Notwithstanding the foregoing, the Purchased Assets shall not include the following assets (collectively,
the “Excluded Assets”):

 

(a)
Cash and cash equivalents;

 

(b)
Contracts that are not Assigned Contracts (the “Excluded Contracts”), as set forth on Schedule 2.02(b) attached
hereto;

 

(c)
the organizational documents, minute books, stock books, Tax Returns or other records having to do with the corporate organization
of Seller;

 

(d)
all Seller Benefit Plans and assets attributable thereto;

 

(e)
all credits, advance payments, claims, refunds, rights of recovery, rights of set-off, rights of recoupment and fees to the extent
relating to the payment of Taxes;

 

(f)
the assets, properties and rights and liabilities of (i) any and all operations, treatment protocols or businesses of Seller which
have been discontinued prior to the Closing Date; provided that Buyer and Medovex shall have the right to use all data and information
derived therefrom and related thereto, and (ii) such other assets specifically set forth on Schedule 2.02(f) attached hereto;

 

(g)
the rights which accrue or will accrue to Seller under this Agreement and the Ancillary Documents;

 

(h)
the issued and outstanding ownership interests of and all operations by the entities listed on Schedule 2.02(h) attached hereto;
and

 

    	 	12	 

     

    

 

(i)
all directors and officers liability insurance and related insurance benefits, and all insurance held by one or more of the Sellers
providing benefits related to the Tampa Litigation, and such related insurance benefits.

 

Section
2.03 Assumed Liabilities. Subject to the terms and conditions set forth herein, Buyer shall assume and agree to pay, perform
and discharge only the following Liabilities of Seller (collectively, the “Assumed Liabilities”), and no other
Liabilities:

 

(a)
the trade accounts payable of Seller to third parties in connection with the Seller Business that remain unpaid and are not more
than sixty days (60) past due as of the Closing Date and which are set forth on Schedule 2.03(a) attached hereto; and

 

(b)
all Liabilities in respect of the Assigned Contracts but only to the extent that such Liabilities thereunder are required to be
performed after the Closing Date, were incurred in the ordinary course of business, and do not relate to any failure to perform,
improper performance, warranty or other breach, default or violation by Seller on or prior to the Closing.

 

Section
2.04 Excluded Liabilities. Notwithstanding the provisions of Section 2.03 or any other provision in this Agreement to the
contrary, Buyer shall not assume and shall not be responsible to pay, perform or discharge any Liabilities of Seller or any of
its Affiliates of any kind or nature whatsoever other than the Assumed Liabilities (the “Excluded Liabilities”).
Seller shall, and shall cause each of its Affiliates to, timely pay and satisfy in due course all Excluded Liabilities which they
are obligated to pay and satisfy. Without limiting the generality of the foregoing, the Excluded Liabilities shall include, but
not be limited to, the following:

 

(a)
any Liabilities of Seller arising or incurred in connection with the negotiation, preparation, investigation and performance of
this Agreement, the Ancillary Documents and the transactions contemplated hereby and thereby, including, without limitation, fees
and expenses of counsel, accountants, consultants, advisers and others;

 

(b)
any Liability for (i) Taxes of Seller (or any stockholder or Affiliate of Seller) or relating to the Seller Business, the Purchased
Assets or the Assumed Liabilities for any Pre-Closing Tax Period; (ii) Taxes that arise out of the consummation of the transactions
contemplated hereby or that are the responsibility of Seller pursuant to Section 6.17; or (iii) other Taxes of Seller (or any
stockholder or Affiliate of Seller) of any kind or description (including any Liability for Taxes of Seller (or any stockholder
or Affiliate of Seller) that becomes a Liability of Buyer under any common law doctrine of de facto merger or transferee or successor
liability or otherwise by operation of contract or Law);

 

(c)
any Liabilities relating to or arising out of the Excluded Assets;

 

(d)
any Liabilities in respect of any pending or threatened Action arising out of, relating to or otherwise in respect of the operation
of the Seller Business or the Purchased Assets to the extent such Action relates to such operation on or prior to the Closing
Date, including, but not limited to, the Tampa Litigation;

 

    	 	13	 

     

    

 

(e)
any Liabilities of Seller arising under or in connection with any Seller Benefit Plan providing benefits to any present or former
employee of Seller;

 

(f)
any Liabilities of Seller for any present or former employees, officers, directors, retirees, independent contractors or consultants
of Seller, including, without limitation, any Liabilities associated with any claims for wages or other benefits, bonuses, accrued
vacation, workers’ compensation, severance, retention, termination or other payments;

 

(g)
any Environmental Claims, or Liabilities under Environmental Laws, to the extent arising out of or relating to facts, circumstances
or conditions existing on or prior to the Closing or otherwise to the extent arising out of any actions or omissions of Seller;

 

(h)
any Liabilities associated with debt, loans or credit facilities of Seller and/or the Seller Business owing to financial institutions;
and

 

(i)
any Liabilities arising out of, in respect of or in connection with the failure by Seller or any of its Affiliates to comply with
any Law or Governmental Order.

 

Section
2.05 Purchase Price. Pursuant to the requirements of Section 368(a)(1)(C) of the Code and the regulations promulgated thereunder,
as full consideration for the Purchased Assets:

 

(a)
Medovex will issue and Buyer will deliver to Seller at the Closing that number of shares of Series C Preferred Stock (defined
below, such Series C Preferred Stock, as adjusted pursuant to Section 2.05(f) being referred to as the “Exchange Shares”)
which shall represent the right to convert into and acquire without further consideration, the excess of:

 

(i)
fifty-five percent (55%) of the outstanding Common Stock (defined below) of Medovex on the Closing Date:

 

(A)
including for purposes of calculating the outstanding shares of Common Stock on the Closing Date (1) all shares of Common Stock
that are reserved for issuance upon conversion of the outstanding Series A Preferred Stock, the Series B Preferred Stock, and
the Series C Preferred Stock (other than the Exchange Shares), and (2) all shares of Common Stock that are reserved for issuance
upon conversion of the 12% Senior Secured Convertible Notes; but

 

(B)
excluding for purposes of calculating the outstanding shares of Common Stock on the Closing Date (1) all shares of Common Stock
that are reserved for issuance upon exercise of outstanding Warrants (defined below) of Medovex, (2) all shares of Common Stock
that are reserved for issuance upon exercise of outstanding options to purchase Common Stock under the 2013 Stock Option Plan,
(3) all shares of Common Stock that are reserved for future grants pursuant to the 2013 Stock Option Plan, and (4) the shares
of Common Stock issued and issuable to William Horne pursuant to the Horne Employment Agreement, less

 

(ii)
583,333 shares of Common Stock;

 

    	 	14	 

     

    

 

(b)
Medovex will pay to RMS the sum of $350,000;

 

(c)
Buyer will assume the Assumed Liabilities; and

 

(d)
on each Additional Share Issue Date (defined below), Buyer will issue the then required Additional Exchange Shares (defined below)
and deliver them to Seller (collectively, the “Purchase Price”).

 

(e)
For purposes of this Agreement, the “Additional Share Issue Dates” shall be each date following the Closing
Date that Medovex or any Medovex Member sells or otherwise issues any of its capital stock, or any obligations, options, warrants
or other rights to acquire shares of any class of capital stock of Medovex, or any outstanding securities or other instruments
convertible into shares of capital stock of Medovex until all of the Additional Exchange Shares have been issued and delivered
to Seller.

 

(f)
The “Additional Exchange Shares” shall be determined on each Additional Share Issue Date as follows:

 

(i)
RMS and Medovex shall determine the aggregate number of shares of Common Stock that (i) was issued on such date, (ii) could be
issued as the result of the conversion of any Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock, and
any other security or other instrument convertible into shares of Common Stock issued on such date, and (iii) could be issued
upon the exercise of each option, warrant or other right to acquire Common Stock or capital stock convertible into Common Stock
on such date (collectively, the “New Securities”).

 

(ii)
The aggregate number of Exchange Shares shall be re-calculated pursuant to Section 2.05(a) by including in Section 2.05(a)(i)(A)
the aggregate number of shares of Common Stock issued or issuable as part of the New Securities determined for the then current
Additional Share Issue Date and all prior Additional Share Issue Dates.

 

(iii)
Buyer will deliver to Seller on such Additional Share Issue Date additional Exchange Shares in an amount equal to the excess of
the aggregate Exchange Shares calculated for the then current Additional Share Issue Date, less the number of Exchange Shares
calculated for the immediately preceding Additional Share Issue Date (“Additional Exchange Shares”).

 

    	 	15	 

     

    

 

(iv)
Notwithstanding the foregoing provisions of this Section 2.05(f), Seller shall not be entitled to receive, and Buyer shall not
be obligated to issue to Seller, any Additional Exchange Shares following such time as an aggregate of five million dollars ($5,000,000)
of New Securities and shares of capital stock sold pursuant to Section 7.03(d) (on a fully diluted basis) have been sold by Medovex
or a Medovex Member and included in the calculation of Exchange Shares or Additional Exchange Shares. For purposes of clarity,
it is the intent of Seller and Buyer that Seller’s Exchange Shares shall not be diluted by the issuance and sale of New
Securities, including shares of capital stock sold pursuant to Section 7.03(d) (calculated on a fully diluted basis), until $5,000,000
of New Securities and shares of capital stock sold pursuant to Section 7.03(d) have been sold by Medovex or a Medovex Member.
Thereafter, Seller and the shareholders of Medovex shall dilute pro rata based upon their respective ownership percentages.

 

(v)
Following the date that the Series C Preferred Stock is convertible into shares of Common Stock in accordance with its terms,
Buyer shall issue to Seller shares of Common Stock and not Series C Preferred stock as the Additional Exchange Shares pursuant
to this Section 2.05.

 

Attached
as Schedule 2.05 is an example of the calculation of the Exchange Shares based upon the capitalization of Medovex as set forth
in Section 5.03 and assuming the subsequent issuance of New Securities. The Purchase Price shall be paid as provided in Section
3.02. Immediately after the exchange, Buyer shall have acquired substantially all of the assets (as required by in Section 368(a)(1)(C)
of the Code) of Seller and the Seller Business.

 

Section
2.06 Allocation of Purchase Price. Seller and Buyer agree that the Purchase Price shall be allocated among the Purchased Assets
for all purposes (including Tax and financial accounting) in accordance with their respective fair market values, as agreed upon
in good faith by RMS and Buyer.

 

Section
2.07 Tax Effect; Withholding Tax. Each Seller acknowledges that it has received its own independent tax advice with respect
to the transactions contemplated by this Agreement and is not relying on any representations made by Medovex or Buyer, its counsel
or accountants with respect thereto. Buyer shall be entitled to deduct and withhold from the Purchase Price all Taxes that Buyer
may be required to deduct and withhold under any provision of Tax Law. All such withheld amounts shall be treated as delivered
to Seller hereunder.

 

Section
2.08 Third Party Consents. To the extent that Seller’s rights under any Contract or Permit constituting a Purchased
Asset, or any other Purchased Asset, may not be assigned to Buyer without the consent of another Person which has not been obtained,
this Agreement shall not constitute an agreement to assign the same if an attempted assignment would constitute a breach thereof
or be unlawful, and Seller, at its expense, shall use its reasonable best efforts to obtain any such required consent(s) as promptly
as possible. If any such consent shall not be obtained or if any attempted assignment would be ineffective or would impair Buyer’s
rights under the Purchased Asset in question so that Buyer would not in effect acquire the benefit of all such rights, Seller,
to the maximum extent permitted by law and the Purchased Asset, shall act after the Closing as Buyer’s agent in order to
obtain for it the benefits thereunder and shall cooperate, to the maximum extent permitted by Law and the Purchased Asset, with
Buyer in any other reasonable arrangement designed to provide such benefits to Buyer. Notwithstanding any provision in this Section
2.08 to the contrary, Buyer shall not be deemed to have waived its rights under Section 7.02(c) hereof unless and until Buyer
either provides written waivers thereof or elects to proceed to consummate the transactions contemplated by this Agreement at
Closing.

 

    	 	16	 

     

    

 

ARTICLE
III

CLOSING

 

Section
3.01 Closing. Subject to the terms and conditions of this Agreement, the consummation of the transactions contemplated by
this Agreement (the “Closing”) shall take place at a location and time mutually agreed upon by Buyer and RMS
on the second Business Day after all of the conditions to Closing set forth in ARTICLE VII are either satisfied or waived (other
than conditions which, by their nature, are to be satisfied on the Closing Date). The date on which the Closing is to occur is
herein referred to as the “Closing Date”.

 

Section
3.02 Closing Deliverables.

 

(a)
At the Closing, RMS shall deliver to Buyer the following:

 

(i)
a bill of sale in form and substance satisfactory to Buyer (the “Bill of Sale”) and duly executed by each Seller,
transferring the Tangible Personal Property included in the Purchased Assets to Buyer or its designated subsidiary;

 

(ii)
an assignment and assumption agreement in form and substance satisfactory to Buyer (the “Assignment and Assumption Agreement”)
and duly executed by each Seller, effecting the assignment to and assumption by Buyer, or its designated subsidiary, of the Purchased
Assets and the Assumed Liabilities;

 

(iii)
with respect to each Lease, an Assignment and Assumption of Lease in form and substance satisfactory to Buyer (each, an “Assignment
and Assumption of Lease”) and duly executed by Seller;

 

(iv)
the Seller Closing Certificate;

 

(v)
the FIRPTA Certificate;

 

(vi)
the Voting Agreement, executed by RMS Shareholder; and

 

(vii)
such other customary instruments of transfer, assumption, filings or documents, in form and substance reasonably satisfactory
to Buyer, as may be required to give effect to this Agreement.

 

    	 	17	 

     

    

 

(b)
At the Closing, Buyer shall deliver to RMS the following:

 

(i)
a stock certificate representing the Exchange Shares issued to RMS, and $350,000 by wire transfer of immediately available funds
to an account designated in writing by RMS to Buyer;

 

(ii)
the Assignment and Assumption Agreement duly executed by Buyer, or its designated subsidiary;

 

(iii)
with respect to each Lease, an Assignment and Assumption of Lease duly executed by Buyer or its designated subsidiary;

 

(iv)
the Buyer Closing Certificate; and

 

(v)
a voting agreement (the “Voting Agreement”) among RMS Shareholder and holders of at least 30% of the Common
Stock outstanding on the date hereof, agreeing to vote in favor of (1) the authorization of additional shares of Common Stock
of no less than the amount needed for Medovex to issue Common Stock upon the conversion of all outstanding securities convertible
into Common Stock, including, without limitation, the Series C Preferred Stock, and (2) the directors for Medovex in accordance
with Section 6.11.

 

Section
3.03 Liquidation. Prior to but in conjunction with the Closing, RMS agrees to adopt a plan of liquidation and distribution
that will be effectuated upon the complete resolution of the Tampa Litigation, and pursuant to which, prior to the resolution
of the Tampa Litigation, the board of managers of RMS agrees (a) not to acquire any assets or undertake any operations or activities
other than as necessitated by the Tampa Litigation, (b) to distribute to RMS Shareholder the Exchange Shares, (c) to change Seller
names to ones that shall not be confused with the present name of RMS or any other Seller, and (d) to dissolve its corporate existence
and liquidate its affairs as soon as practical following the resolution of the Tampa Litigation. RMS shall liquidate in accordance
with the plan of liquidation and distribution to be adopted before the Closing Date by the board of directors of RMS (a copy of
which shall be supplied to Buyer’s counsel before the Closing Date).

 

ARTICLE
IV

REPRESENTATIONS AND WARRANTIES OF SELLER

 

Except
as set forth in the correspondingly numbered Section of the Disclosure Schedules, Seller represents and warrants to Buyer that
the statements contained in this ARTICLE IV are true and correct as of the date hereof and as of the Closing Date.

 

Section
4.01 Organization and Qualification of Seller. Each of RMS, the Operating Subsidiaries and any other entity selling or assigning
Purchased Assets pursuant to this Agreement is a limited liability company duly formed, validly existing and in good standing
under the Laws of the state of Delaware and has full limited liability company power and authority to own, operate or lease the
properties and assets now owned, operated or leased by it and to carry on the Seller Business as currently conducted. Section
4.01 of the Disclosure Schedules sets forth each jurisdiction in which such Seller is licensed or qualified to do business, and
each Seller is duly licensed or qualified to do business and is in good standing in each jurisdiction in which the ownership of
the Purchased Assets or the operation of the Seller Business as currently conducted makes such licensing or qualification necessary.

 

    	 	18	 

     

    

 

Section
4.02 Authority of Seller. Each of RMS, the Operating Subsidiaries and any other entity selling or assigning Purchased Assets
pursuant to this Agreement has full limited liability company power and authority to enter into this Agreement and the Ancillary
Documents to which each of them is a party, to carry out its obligations hereunder and thereunder and to consummate the transactions
contemplated hereby and thereby. The execution and delivery by each such entity of this Agreement and any Ancillary Document to
which it is a party, the performance by such entity of its obligations hereunder and thereunder and the consummation by such entity
of the transactions contemplated hereby and thereby have been duly authorized by all requisite action on the part of such entity.
The sole shareholder of RMS has approved the transactions contemplated hereby and no shareholder of RMS has any statutory right
to dissent or right of appraisal arising out of the transactions contemplated hereby. This Agreement has been duly executed and
delivered by RMS, the Operating Subsidiaries and any other entity selling or assigning Purchased Assets pursuant to this Agreement,
and (assuming due authorization, execution and delivery by Buyer and Medovex) this Agreement constitutes a legal, valid and binding
obligation of each of them enforceable against each of them in accordance with its terms. When each Ancillary Document to which
RMS, the Operating Subsidiaries and any other entity selling or assigning Purchased Assets pursuant to this Agreement is or will
be a party has been duly executed and delivered by them (assuming due authorization, execution and delivery by each other party
thereto), such Ancillary Document will constitute a legal and binding obligation of each of them enforceable against each of them
in accordance with its terms.

 

Section
4.03 No Conflicts; Consents. The execution, delivery and performance by each Seller of this Agreement and the Ancillary Documents
to which it or any of them is a party, and the consummation of the transactions contemplated hereby and thereby, do not and will
not: (a) conflict with or result in a violation or breach of, or default under, any provision of the organizational documents
of any Seller; (b) conflict with or result in a violation or breach of any provision of any Law or Governmental Order applicable
to any Seller, the Seller Business or the Purchased Assets; (c) require the consent, notice or other action by any Person under,
conflict with, result in a violation or breach of, constitute a default or an event that, with or without notice or lapse of time
or both, would constitute a default under, result in the acceleration of or create in any party the right to accelerate, terminate,
modify or cancel any Contract or Permit to which a Seller is a party or by which a Seller or the Seller Business is bound or to
which any of the Purchased Assets are subject (including any Assigned Contract), except as set forth in Section 4.03 of the Disclosure
Schedules; or (d) result in the creation or imposition of any Encumbrance other than Permitted Encumbrances on the Purchased Assets.
Except as set forth in Section 4.03 of the Disclosure Schedules, no consent, approval, Permit, Governmental Order, declaration
or filing with, or notice to, any Governmental Authority is required by or with respect to any Seller in connection with the execution
and delivery of this Agreement or any of the Ancillary Documents and the consummation of the transactions contemplated hereby
and thereby.

 

Section
4.04 Financial Statements. Complete copies of the audited financial statements consisting of the balance sheet of the Seller
Business as of December 31, 2016 and December 31, 2017 and the related statements of income and retained earnings, stockholders’
equity and cash flow for the years then ended (the “Audited RMS Financial Statements”), and unaudited financial
statements consisting of the balance sheet of the Seller Business as at June 30, 2018 and the related statements of income and
retained earnings, stockholders’ equity and cash flow for the period then ended (the “Interim RMS Financial Statements”
and together with the Audited Financial Statements, the “RMS Financial Statements”) have been delivered to
Buyer. The RMS Financial Statements have been prepared in accordance with GAAP applied on a consistent basis throughout the period
involved, subject, in the case of the Interim RMS Financial Statements, to normal and recurring year-end adjustments (the effect
of which will not be materially adverse) and the absence of notes (that, if presented, would not differ materially from those
presented in the Audited RMS Financial Statements). The RMS Financial Statements are based on the books and records of the Seller
Business, and fairly present in all material respects the financial condition of the Seller Business as of the respective dates
they were prepared and the results of the operations of the Seller Business for the periods indicated. The balance sheet of the
Seller Business as of December 31, 2017 is referred to herein as the “RMS Balance Sheet” and the date thereof
as the “RMS Balance Sheet Date” and the balance sheet of the Seller Business as of June 30, 2018 is referred
to herein as the “Interim RMS Balance Sheet” and the date thereof as the “Interim RMS Balance Sheet
Date”. Except as set forth in Section 4.04 of the Disclosure Schedules, Seller maintains a standard system of accounting
and internal controls over financial reporting that is sufficient to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements in accordance with GAAP.

 

    	 	19	 

     

    

 

Section
4.05 Undisclosed Liabilities. Seller has no Liabilities, except (a) those which are adequately reflected or reserved against
in the RMS Balance Sheet as of the RMS Balance Sheet Date, and (b) those which have been incurred in the ordinary course of business
consistent with past practice since the RMS Balance Sheet Date and which are not, individually or in the aggregate, material in
amount.

 

Section
4.06 Absence of Certain Changes, Events and Conditions. Since the RMS Balance Sheet Date, there has not been any:

 

(a)
event, occurrence or development that has had, or could reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect;

 

(b)
declaration or payment of any distributions on or in respect of any of Seller’s limited liability company interests or redemption,
purchase or acquisition of Seller’s limited liability company interests;

 

(c)
material change in any method of accounting or accounting practice for the Seller Business;

 

(d)
material change in cash management practices and policies, practices and procedures with respect to collection of Accounts Receivable,
establishment of reserves for uncollectible Accounts Receivable, accrual of Accounts Receivable, prepayment of expenses, payment
of trade accounts payable, accrual of other expenses and deferral of revenue;

 

    	 	20	 

     

    

 

(e)
entry into any Contract that would constitute a RMS Material Contract;

 

(f)
incurrence, assumption or guarantee of any indebtedness for borrowed money in connection with the Seller Business except unsecured
current obligations and Liabilities incurred in the ordinary course of business consistent with past practice;

 

(g)
transfer, assignment, sale or other disposition of any of the Purchased Assets shown or reflected in the RMS Balance Sheet;

 

(h)
cancellation of any debts or claims or amendment, termination or waiver of any rights constituting Purchased Assets;

 

(i)
transfer or assignment of or grant of any license or sublicense under or with respect to any Intellectual Property Assets or Intellectual
Property Agreements except non-exclusive licenses or sublicenses granted in the ordinary course of business consistent with past
practice;

 

(j)
abandonment or lapse of or failure to maintain in full force and effect any Intellectual Property Registration, or failure to
take or maintain reasonable measures to protect the confidentiality or value of any Trade Secrets included in the Intellectual
Property Assets;

 

(k)
material damage, destruction or loss, or any material interruption in use, of any Purchased Assets, whether or not covered by
insurance;

 

(l)
acceleration, termination, material modification to or cancellation of any Assigned Contract or Permit;

 

(m)
material capital expenditures which would constitute an Assumed Liability;

 

(n)
imposition of any Encumbrance upon any of the Purchased Assets;

 

(o)
(i) grant of any bonuses, whether monetary or otherwise, or increase in any wages, salary, severance, pension or other compensation
or benefits in respect of any current or former employees, officers, directors, independent contractors or consultants of the
Seller Business, other than as provided for in any written agreements or required by applicable Law or other than in the ordinary
course of business consistent with past practice, (ii) change in the terms of employment for any employee of the Seller Business
or any termination of any employees, or (iii) action to accelerate the vesting or payment of any compensation or benefit for any
current or former employee, officer, director, consultant or independent contractor of the Seller Business;

 

(p)
adoption, modification or termination of any: (i) employment, severance, retention or other agreement with any current or former
employee, officer, director, independent contractor or consultant of the Seller Business, other than in the ordinary course of
business consistent with past practice, or (ii) Seller Benefit Plan;

 

    	 	21	 

     

    

 

(q)
any loan to (or forgiveness of any loan to), or entry into any other transaction with, any current or former directors, officers
or employees of the Seller Business;

 

(r)
adoption of any plan of merger, consolidation, reorganization, liquidation or dissolution or filing of a petition in bankruptcy
under any provisions of federal or state bankruptcy Law or consent to the filing of any bankruptcy petition against it under any
similar Law;

 

(s)
purchase, lease or other acquisition of the right to own, use or lease any property or assets in connection with the Seller Business;

 

(t)
any Contract to do any of the foregoing, or any action or omission that would result in any of the foregoing.

 

Section
4.07 Material Contracts.

 

(a)
Section 4.07(a) of the Disclosure Schedules lists each of the following Contracts (x) by which any of the Purchased Assets are
bound or affected or (y) to which any Seller is a party or by which it is bound in connection with the Seller Business or the
Purchased Assets (such Contracts, together with all Contracts concerning the occupancy, management or operation of any Seller
Leased Real Property (including without limitation, brokerage contracts) listed or otherwise disclosed in Section 4.10 of the
Disclosure Schedules and all Intellectual Property Agreements being “RMS Material Contracts”):

 

(i)
all Contracts which, in each case, cannot be cancelled without penalty or without more than 90 days’ notice;

 

(ii)
all Contracts that provide for the indemnification of any Person or the assumption of any Tax, environmental or other Liability
of any Person;

 

(iii)
all Contracts that relate to the acquisition or disposition of any business, a material amount of stock or assets of any other
Person or any real property (whether by merger, sale of stock, sale of assets or otherwise);

 

(iv)
all broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing,
consulting and advertising Contracts;

 

(v)
all employment agreements and Contracts with independent contractors or consultants (or similar arrangements) and which are not
cancellable without material penalty or without more than 30 days’ notice;

 

(vi)
except for Contracts relating to trade receivables, all Contracts relating to indebtedness (including, without limitation, guarantees);

 

    	 	22	 

     

    

 

(vii)
all Contracts that limit or purport to limit the ability of Seller to compete in any line of business or with any Person or in
any geographic area or during any period of time;

 

(viii)
all joint venture, partnership or similar Contracts;

 

(ix)
all Contracts for the sale of any of the Purchased Assets or for the grant to any Person of any option, right of first refusal
or preferential or similar right to purchase any of the Purchased Assets;

 

(x)
all powers of attorney with respect to the Seller Business or any Purchased Asset; and

 

(xi)
all other Contracts that are material to the Purchased Assets or the operation of the Seller Business and not previously disclosed
pursuant to this Section 4.07.

 

(b)
Each RMS Material Contract is valid and binding on Seller in accordance with its terms and is in full force and effect. None of
Seller or, to Seller’s Knowledge, any other party thereto is in breach of or default under (or is alleged to be in breach
of or default under), or has provided or received any notice of any intention to terminate, any RMS Material Contract. No event
or circumstance has occurred that, with notice or lapse of time or both, would constitute an event of default under any RMS Material
Contract or result in a termination thereof or would cause or permit the acceleration or other changes of any right or obligation
or the loss of any benefit thereunder. Complete and correct copies of each RMS Material Contract (including all modifications,
amendments and supplements thereto and waivers thereunder) have been made available to Buyer. There are no material disputes pending
or, to Seller’s Knowledge, threatened under any Material Contract included in the Purchased Assets.

 

Section
4.08 Title to Purchased Assets. Seller has good and valid title to, or a valid leasehold interest in, all of the Purchased
Assets. All such Purchased Assets (including leasehold interests) are free and clear of Encumbrances, other than Permitted Encumbrances.

 

Section
4.09 Condition and Sufficiency of Assets. The Tangible Personal Property included in the Purchased Assets are structurally
sound, are in good operating condition and repair, and are adequate for the uses to which they are being put, and none of such
Tangible Personal Property is in need of maintenance or repairs except for ordinary, routine maintenance and repairs that are
not material in nature or cost. The Purchased Assets are sufficient for the continued conduct of the Seller Business after the
Closing in substantially the same manner as conducted prior to the Closing and constitute all of the rights, property and assets
necessary to conduct the Seller Business as currently conducted. None of the Excluded Assets are material to the Seller Business.

 

    	 	23	 

     

    

 

Section
4.10 Seller Leased Real Property.

 

(a)
Section 4.10(a) of the Disclosure Schedules sets forth each parcel of real property leased by Seller and used in or necessary
for the conduct of the Seller Business as currently conducted (together with all rights, title and interest of Seller in and to
leasehold improvements relating thereto, including, but not limited to, security deposits, reserves or prepaid rents paid in connection
therewith, collectively, the “Seller Leased Real Property”), and a true and complete list of all leases, subleases,
licenses, concessions and other agreements (whether written or oral), including all amendments, extensions renewals, guaranties
and other agreements with respect thereto, pursuant to which Seller holds any Seller Leased Real Property (collectively, the “Seller
Leases”). Seller has delivered to Buyer a true and complete copy of each Seller Lease. With respect to each Seller Lease:

 

(i)
such Seller Lease is valid, binding, enforceable and in full force and effect, and Seller enjoys peaceful and undisturbed possession
of the Seller Leased Real Property;

 

(ii)
Seller is not in breach or default under such Lease, and no event has occurred or circumstance exists which, with the delivery
of notice, passage of time or both, would constitute such a breach or default, and Seller has paid all rent due and payable under
such Lease;

 

(iii)
Seller has not received nor given any notice of any default or event that with notice or lapse of time, or both, would constitute
a default by Seller under any of the Seller Leases and, to Seller’s Knowledge, no other party is in default thereof, and
no party to any Lease has exercised any termination rights with respect thereto;

 

(iv)
Seller has not subleased, assigned or otherwise granted to any Person the right to use or occupy such Seller Leased Real Property
or any portion thereof; and

 

(v)
Seller has not pledged, mortgaged or otherwise granted an Encumbrance on its leasehold interest in any Seller Leased Real Property.

 

(b)
Seller has not received any written notice of (i) material violations of building codes and/or zoning ordinances or other governmental
or regulatory Laws affecting the Seller Leased Real Property, (ii) existing, pending, or, to Seller’s Knowledge, threatened
condemnation proceedings affecting the Seller Leased Real Property, or (iii) existing, pending or threatened zoning, building
code or other moratorium proceedings, or similar matters which could reasonably be expected to adversely affect the ability to
operate the Seller Leased Real Property as currently operated. Neither the whole nor any material portion of any Seller Leased
Real Property has been damaged or destroyed by fire or other casualty.

 

(c)
The Seller Leased Real Property is sufficient for the continued conduct of the Seller Business after the Closing in substantially
the same manner as conducted prior to the Closing and constitutes all of the real property necessary to conduct the Seller Business
as currently conducted.

 

    	 	24	 

     

    

 

Section
4.11 Intellectual Property.

 

(a)
Section 4.11(a) of the Disclosure Schedules contains a correct, current and complete list of: (i) all Intellectual Property Registrations,
(ii) all unregistered Trademarks and Trade Secrets included in the Intellectual Property Assets; (iii) all proprietary Software
included in the Intellectual Property Assets; and (iv) all other Intellectual Property Assets that are used or held for use in
the conduct of the Seller Business as currently conducted or proposed to be conducted. All required filings and fees related to
the Intellectual Property Registrations have been timely filed with and paid to the relevant Governmental Authorities and authorized
registrars, and all Intellectual Property Registrations are otherwise in good standing. Seller has provided Buyer with true and
complete copies of file histories, documents, certificates, office actions, correspondence and other materials related to all
Intellectual Property Registrations.

 

(b)
Section 4.11(b) of the Disclosure Schedules contains a correct, current and complete list of all Intellectual Property Agreements.
Seller has provided Buyer with true and complete copies (or in the case of any oral agreements, a complete and correct written
description) of all such Intellectual Property Agreements, including all modifications, amendments and supplements thereto and
waivers thereunder.

 

(c)
Seller is the sole and exclusive legal and beneficial, and with respect to the Intellectual Property Registrations, record, owner
of all right, title and interest in and to the Intellectual Property Assets, and has the valid and enforceable right to use all
other Intellectual Property used or held for use in or necessary for the conduct of the Seller Business as currently conducted
or as proposed to be conducted, in each case, free and clear of Encumbrances other than Permitted Encumbrances. Seller has entered
into binding, valid and enforceable written Contracts with each current and former employee and independent contractor whereby
such employee or independent contractor (i) acknowledges Seller’s exclusive ownership of all Intellectual Property Assets
invented, created or developed by such employee or independent contractor within the scope of his or her employment or engagement
with Seller; (ii) grants to Seller a present, irrevocable assignment of any ownership interest such employee or independent contractor
may have in or to such Intellectual Property; and (iii) irrevocably waives any right or interest, including any moral rights,
regarding such Intellectual Property, to the extent permitted by applicable Law. Seller has provided Buyer with true and complete
copies of all such Contracts.

 

(d)
Neither the execution, delivery or performance of this Agreement, nor the consummation of the transactions contemplated hereunder,
will result in the loss or impairment of, or payment of any additional amounts with respect to, nor require the consent of any
other Person in respect of, Buyer’s right to own or use any Intellectual Property Assets or any Intellectual Property subject
to any Intellectual Property Agreement.

 

    	 	25	 

     

    

 

(e)
All of the Intellectual Property Assets are valid and enforceable, and all Intellectual Property Registrations are subsisting
and in full force and effect. Seller has taken all necessary steps to maintain and enforce the Intellectual Property Assets and
to preserve the confidentiality of all Trade Secrets included in the Intellectual Property Assets, including by requiring all
Persons having access thereto to execute binding, written non-disclosure agreements.

 

(f)
To Seller’s Knowledge, the conduct of the Seller Business as currently and formerly conducted and as proposed to be conducted,
including the use of the Intellectual Property Assets and any Intellectual Property licensed under the Intellectual Property Agreements
in connection therewith, and the products, processes, and services of the Seller Business have not infringed, misappropriated,
or otherwise violated and will not infringe, misappropriate, or otherwise violate the Intellectual Property or other rights of
any Person. To Seller’s Knowledge, no Person has infringed, misappropriated, or otherwise violated any Intellectual Property
Assets or any Intellectual Property licensed under the Intellectual Property Agreements.

 

(g)
There are no Actions (including any opposition, cancellation, revocation, review, or other proceeding) settled, pending or, to
Seller’s Knowledge, threatened (including in the form of offers to obtain a license): (i) alleging any infringement, misappropriation,
or other violation of the Intellectual Property of any Person by Seller in the conduct of the Seller Business; (ii) challenging
the validity, enforceability, registrability, patentability, or ownership of any Intellectual Property Assets; or (iii) by Seller
or any other Person alleging any infringement, misappropriation, or violation by any Person of any Intellectual Property Assets.
Seller is not aware of any facts or circumstances that could reasonably be expected to give rise to any such Action. Seller is
not subject to any outstanding Governmental Order (including any motion or petition therefor) that does or could reasonably be
expected to restrict or impair the use of any Intellectual Property Assets.

 

Section
4.12 Accounts Receivable. The Accounts Receivable reflected on the Interim RMS Balance Sheet and the Accounts Receivable arising
after the date thereof (a) have arisen from bona fide transactions entered into by Seller involving the sale of goods or the rendering
of services in the ordinary course of business consistent with past practice; (b) constitute only valid, undisputed claims of
Seller not subject to claims of set-off or other defenses or counterclaims other than normal cash discounts accrued in the ordinary
course of business consistent with past practice; and (c) subject to a reserve for bad debts shown on the Interim RMS Balance
Sheet or, with respect to Accounts Receivable arising after the Interim RMS Balance Sheet Date, on the accounting records of the
Seller Business, are collectible in full within 90 days after billing. The reserve for bad debts shown on the Interim RMS Balance
Sheet or, with respect to Accounts Receivable arising after the Interim RMS Balance Sheet Date, on the accounting records of the
Seller Business have been determined in accordance with GAAP, consistently applied, subject to normal year-end adjustments and
the absence of disclosures normally made in footnotes.

 

Section
4.13 Insurance. Section 4.13 of the Disclosure Schedules sets forth (a) a true and complete list of all current policies or
binders of fire, liability, malpractice, umbrella liability, real and personal property, workers’ compensation, vehicular,
fiduciary liability and other casualty and property insurance maintained by Seller or its Affiliates and relating to the Seller
Business, the Purchased Assets or the Assumed Liabilities (collectively, the “RMS Insurance Policies”); and
(b) with respect to the Seller Business, the Purchased Assets or the Assumed Liabilities, a list of all pending claims and the
claims history for Seller since December 31, 2016. There are no claims related to the Seller Business, the Purchased Assets or
the Assumed Liabilities pending under any such RMS Insurance Policies as to which coverage has been questioned, denied or disputed
or in respect of which there is an outstanding reservation of rights. Neither Seller nor any of its Affiliates has received any
written notice of cancellation of, premium increase with respect to, or alteration of coverage under, any of such RMS Insurance
Policies. All premiums due on such RMS Insurance Policies have either been paid or, if not yet due, accrued. All such RMS Insurance
Policies (a) are in full force and effect and enforceable in accordance with their terms; (b) are provided by carriers who are
financially solvent; and (c) have not been subject to any lapse in coverage. None of Seller or any of its Affiliates is in default
under, or has otherwise failed to comply with, in any material respect, any provision contained in any such RMS Insurance Policy.
The RMS Insurance Policies are of the type and in the amounts customarily carried by Persons conducting a business similar to
the Seller Business and are sufficient for compliance with all applicable Laws and Contracts to which Seller is a party or by
which it is bound. True and complete copies of the RMS Insurance Policies have been made available to Buyer.

 

    	 	26	 

     

    

 

Section
4.14 Legal Proceedings; Governmental Orders. Except for the Tampa Litigation, there are no Actions pending or, to Seller’s
Knowledge, threatened against or by Seller (a) relating to or affecting the Seller Business, the Purchased Assets or the Assumed
Liabilities; or (b) that challenge or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement.
No event has occurred or circumstances exist that may give rise to, or serve as a basis for, any such Action. There are no outstanding
Governmental Orders and no unsatisfied judgments, penalties or awards against, relating to or affecting the Seller Business.

 

Section
4.15 Compliance With Laws; Permits.

 

(a)
To Seller’s Knowledge, Seller has complied, and is now complying, with all Laws applicable to the conduct of the Seller
Business as currently conducted or the ownership and use of the Purchased Assets.

 

(b)
All Permits required for Seller to conduct the Seller Business as currently conducted or for the ownership and use of the Purchased
Assets have been obtained by Seller and are valid and in full force and effect. All fees and charges with respect to such Permits
as of the date hereof have been paid in full. Section 4.15(b) of the Disclosure Schedules lists all current Permits issued to
Seller which are related to the conduct of the Seller Business as currently conducted or the ownership and use of the Purchased
Assets, including the names of the Permits and their respective dates of issuance and expiration. No event has occurred that,
with or without notice or lapse of time or both, would reasonably be expected to result in the revocation, suspension, lapse or
limitation of any Permit set forth in Section 4.15(b) of the Disclosure Schedules.

 

    	 	27	 

     

    

 

Section
4.16 Environmental Matters. The operations of Seller with respect to the Seller Business and the Purchased Assets are currently
and have been in compliance with all Environmental Laws. Seller has not received from any Person, with respect to the Seller Business
or the Purchased Assets, any: (i) Environmental Notice or Environmental Claim; or (ii) written request for information pursuant
to Environmental Law, which, in each case, either remains pending or unresolved, or is the source of ongoing obligations or requirements
as of the Closing Date. Seller has obtained and is in material compliance with all Environmental Permits (each of which is disclosed
in Section 4.16 of the Disclosure Schedules) necessary for the conduct of the Seller Business as currently conducted or the ownership,
lease, operation or use of the Purchased Assets and all such Environmental Permits are in full force and effect and shall be maintained
in full force and effect by Seller through the Closing Date in accordance with Environmental Law, and Seller is not aware of any
condition, event or circumstance that might prevent or impede, after the Closing Date, the conduct of the Seller Business as currently
conducted or the ownership, lease, operation or use of the Purchased Assets. Seller has not retained or assumed, by contract or
operation of Law, any liabilities or obligations of third parties under Environmental Law.

 

Section
4.17 Employee Benefit Matters.

 

(a)
Section 4.17(a) of the Disclosure Schedules contains a true and complete list of each Seller Benefit Plan.

 

(b)
With respect to each Seller Benefit Plan, Seller has made available to Buyer accurate, current and complete copies of each of
the following: (i) where the Seller Benefit Plan has been reduced to writing, the plan document together with all amendments;
(ii) where the Seller Benefit Plan has not been reduced to writing, a written summary of all material plan terms; (iii) where
applicable, copies of any trust agreements or other funding arrangements, custodial agreements, insurance policies and contracts,
administration agreements and similar agreements, and investment management or investment advisory agreements, now in effect or
required in the future as a result of the transactions contemplated by this Agreement or otherwise; (iv) copies of any summary
plan descriptions, summaries of material modifications, summaries of benefits and coverage, COBRA communications, employee handbooks
and any other written communications (or a description of any oral communications) relating to any Seller Benefit Plan; (v) in
the case of any Seller Benefit Plan that is intended to be qualified under Section 401(a) of the Code, a copy of the most recent
determination, opinion or advisory letter from the Internal Revenue Service and any legal opinions issued thereafter with respect
to such Seller Benefit Plan’s continued qualification; (vi) in the case of any Seller Benefit Plan for which a Form 5500
must be filed, a copy of the two most recently filed Forms 5500, with all corresponding schedules and financial statements attached;
(vii) actuarial valuations and reports related to any Seller Benefit Plans with respect to the most recently completed plan years;
(viii) the most recent nondiscrimination tests performed under the Code; and (ix) copies of material notices, letters or other
correspondence from the Internal Revenue Service, Department of Labor, Department of Health and Human Services, Pension Benefit
Guaranty Corporation or other Governmental Authority relating to the Seller Benefit Plan.

 

    	 	28	 

     

    

 

(c)
Each Seller Benefit Plan and any related trust (other than any multiemployer plan within the meaning of Section 3(37) of ERISA
(each a “Multiemployer Plan”)) has been established, administered and maintained in accordance with its terms
and in compliance with all applicable Laws (including ERISA, the Code and any applicable local Laws). Each Seller Benefit Plan
that is intended to be qualified within the meaning of Section 401(a) of the Code (a “Qualified Seller Benefit Plan”)
is so qualified and received a favorable and current determination letter from the Internal Revenue Service with respect to the
most recent five year filing cycle, or with respect to a prototype or volume submitter plan, can rely on an opinion letter from
the Internal Revenue Service to the prototype plan or volume submitter plan sponsor, to the effect that such Qualified Seller
Benefit Plan is so qualified and that the plan and the trust related thereto are exempt from federal income taxes under Sections
401(a) and 501(a), respectively, of the Code, and nothing has occurred that could reasonably be expected to adversely affect the
qualified status of any Qualified Seller Benefit Plan. Nothing has occurred with respect to any Seller Benefit Plan that has subjected
or could reasonably be expected to subject Seller or any of its ERISA Affiliates or, with respect to any period on or after the
Closing Date, Buyer or any of its Affiliates, to a penalty under Section 502 of ERISA or to tax or penalty under Sections 4975
or 4980H of the Code.

 

No
pension plan (other than a Multiemployer Plan) which is subject to minimum funding requirements, including any multiple employer
plan, (each a “Single Employer Plan”) in which employees of the Seller Business or any ERISA Affiliate participate
or have participated has an “accumulated funding deficiency,” whether or not waived, or is subject to a lien for unpaid
contributions under Section 303(k) of ERISA or Section 430(k) of the Code. No Single Employer Plan covering employees of the Seller
Business which is a defined benefit plan has an “adjusted funding target attainment percentage,” as defined in Section
436 of the Code, less than 80%. All benefits, contributions and premiums relating to each Seller Benefit Plan have been timely
paid in accordance with the terms of such Seller Benefit Plan and all applicable Laws and accounting principles, and all benefits
accrued under any unfunded Seller Benefit Plan have been paid, accrued or otherwise adequately reserved to the extent required
by, and in accordance with GAAP.

 

(d)
Neither Seller nor any of its ERISA Affiliates has (i) incurred or reasonably expects to incur, either directly or indirectly,
any material Liability under Title I or Title IV of ERISA or related provisions of the Code or applicable local Law relating to
employee benefit plans; (ii) failed to timely pay premiums to the Pension Benefit Guaranty Corporation; (iii) withdrawn from any
Seller Benefit Plan; (iv) engaged in any transaction which would give rise to liability under Section 4069 or Section 4212(c)
of ERISA; (v) incurred taxes under Section 4971 of the Code with respect to any Single Employer Plan; or (vi) participated in
a multiple employer welfare arrangements (MEWA).

 

(e)
With respect to each Seller Benefit Plan (i) except as set forth in Section 4.17(e) of the Disclosure Schedules, no such plan
is a Multiemployer Plan, and (A) all contributions required to be paid by Seller or its ERISA Affiliates have been timely paid
to the applicable Multiemployer Plan, (B) neither Seller nor any ERISA Affiliate has incurred any withdrawal liability under Title
IV of ERISA which remains unsatisfied, and (C) a complete withdrawal from all such Multiemployer Plans at the Effective Time would
not result in any material liability to Seller and no Multiemployer Plan is in critical, endangered or seriously endangered status
or has suffered a mass withdrawal]; (ii) except as set forth in Section 4.17(e) of the Disclosure Schedules, no such plan is a
“multiple employer plan” within the meaning of Section 413(c) of the Code or a “multiple employer welfare arrangement”
(as defined in Section 3(40) of ERISA); (iii) no Action has been initiated by the Pension Benefit Guaranty Corporation to terminate
any such plan or to appoint a trustee for any such plan; (iv) no such plan or the plan of any ERISA Affiliate maintained or contributed
to within the last six (6) years is a Single Employer Plan subject to Title IV of ERISA; and (v) no “reportable event,”
as defined in Section 4043 of ERISA, with respect to which the reporting requirement has not been waived, has occurred with respect
to any such plan.

 

    	 	29	 

     

    

 

(f)
Other than as required under Sections 601 to 608 of ERISA or other applicable Law, no Seller Benefit Plan or other arrangement
provides post-termination or retiree health benefits to any individual for any reason.

 

(g)
There is no pending or, to Seller’s Knowledge, threatened Action relating to a Seller Benefit Plan (other than routine claims
for benefits), and no Seller Benefit Plan has within the three years prior to the date hereof been the subject of an examination
or audit by a Governmental Authority or the subject of an application or filing under, or is a participant in, an amnesty, voluntary
compliance, self-correction or similar program sponsored by any Governmental Authority.

 

(h)
There has been no amendment to, announcement by Seller or any of its Affiliates relating to, or change in employee participation
or coverage under, any Seller Benefit Plan or collective bargaining agreement that would increase the annual expense of maintaining
such plan above the level of the expense incurred for the most recently completed fiscal year (other than on a de minimis basis)
with respect to any director, officer, employee, consultant or independent contractor of the Seller Business, as applicable. Neither
Seller nor any of its Affiliates has any commitment or obligation or has made any representations to any director, officer, employee,
consultant or independent contractor of the Seller Business, whether or not legally binding, to adopt, amend, modify or terminate
any Seller Benefit Plan or any collective bargaining agreement.

 

(i)
Each Seller Benefit Plan that is subject to Section 409A of the Code has been administered in compliance with its terms and the
operational and documentary requirements of Section 409A of the Code and all applicable regulatory guidance (including, notices,
rulings and proposed and final regulations) thereunder. Seller does not have any obligation to gross up, indemnify or otherwise
reimburse any individual for any excise taxes, interest or penalties incurred pursuant to Section 409A of the Code.

 

(j)
Except as set forth in Section 4.17(e) of the Disclosure Schedules, neither the execution of this Agreement nor any of the transactions
contemplated by this Agreement will (either alone or upon the occurrence of any additional or subsequent events): (i) entitle
any current or former director, officer, employee, independent contractor or consultant of the Seller Business to severance pay
or any other payment; (ii) accelerate the time of payment, funding or vesting, or increase the amount of compensation (including
stock-based compensation) due to any such individual; (iii) increase the amount payable under or result in any other material
obligation pursuant to any Seller Benefit Plan; (iv) result in “excess parachute payments” within the meaning of Section
280G(b) of the Code; or (v) require a “gross-up” or other payment to any “disqualified individual” within
the meaning of Section 280G(c) of the Code. Seller has made available to Buyer true and complete copies of any Section 280G calculations
prepared (whether or not final) with respect to any disqualified individual in connection with the transactions.

 

    	 	30	 

     

    

 

Section
4.18 Employment Matters.

 

(a)
Section 4.18(a) of the Disclosure Schedules contains a list of all persons who are employees, independent contractors or consultants
of the Seller Business as of the date hereof, including any employee who is on a leave of absence of any nature, paid or unpaid,
authorized or unauthorized, and sets forth for each such individual the following: (i) name; (ii) title or position (including
whether full-time or part-time); (iii) hire or retention date; (iv) current annual base compensation rate or contract fee; (v)
commission, bonus or other incentive-based compensation; and (vi) a description of the fringe benefits provided to each such individual
as of the date hereof. As of the date hereof, all compensation, including wages, commissions, bonuses, fees and other compensation,
payable to all employees, independent contractors or consultants of the Seller Business for services performed on or prior to
the date hereof have been paid in full and there are no outstanding agreements, understandings or commitments of Seller with respect
to any compensation, commissions, bonuses or fees.

 

(b)
Seller is not, and has not been a party to, bound by, or negotiating any collective bargaining agreement or other Contract with
a union, works council or labor organization (collectively, “Union”), and there is not, and has not been any
Union representing or purporting to represent any employee of Seller, and no Union or group of employees is seeking or has sought
to organize employees for the purpose of collective bargaining. There has never been, nor has there been any threat of, any strike,
slowdown, work stoppage, lockout, concerted refusal to work overtime or other similar labor disruption or dispute affecting Seller
or any employees of the Seller Business. Seller has no duty to bargain with any Union.

 

(c)
Seller is and has been in compliance with all applicable Laws pertaining to employment and employment practices to the extent
they relate to employees, consultants and independent contractors of the Seller Business, including all Laws relating to labor
relations, equal employment opportunities, fair employment practices, employment discrimination, harassment, retaliation, reasonable
accommodation, disability rights or benefits, immigration, wages, hours, overtime compensation, child labor, hiring, promotion
and termination of employees, working conditions, meal and break periods, privacy, health and safety, workers’ compensation,
leaves of absence, paid sick leave and unemployment insurance. All individuals characterized and treated by Seller as consultants
or independent contractors of the Seller Business are properly treated as independent contractors under all applicable Laws. All
employees of the Seller Business classified as exempt under the Fair Labor Standards Act and state and local wage and hour laws
are properly classified. Seller is in compliance with and has complied with all immigration laws, including Form I-9 requirements
and any applicable mandatory E-Verify obligations. There are no Actions against Seller pending, or to Seller’s Knowledge,
threatened to be brought or filed, by or with any Governmental Authority or arbitrator in connection with the employment of any
current or former applicant, employee, consultant or independent contractor of the Seller Business, including, without limitation,
any charge, investigation or claim relating to unfair labor practices, equal employment opportunities, fair employment practices,
employment discrimination, harassment, retaliation, reasonable accommodation, disability rights or benefits, immigration, wages,
hours, overtime compensation, employee classification, child labor, hiring, promotion and termination of employees, working conditions,
meal and break periods, privacy, health and safety, workers’ compensation, leaves of absence, paid sick leave, unemployment
insurance or any other employment related matter arising under applicable Laws.

 

(d)
Seller has complied with the WARN Act, and it has no plans to undertake any action in the future that would trigger the WARN Act.

 

    	 	31	 

     

    

 

Section
4.19 Taxes.

 

(a)
Except as set forth in Section 4.19(a) of the Disclosure Schedules, all Tax Returns with respect to the Seller Business required
to be filed by Seller for any Pre-Closing Tax Period have been, or will be, timely filed. Such Tax Returns are, or will be when
filed, true, complete and correct in all respects. All Taxes due and owing by Seller (whether or not shown on any Tax Return)
have been, or will be, timely paid. No claim has ever been made by a taxing authority in a jurisdiction where Seller does not
file Tax Returns that Seller is or may be subject to taxation by that jurisdiction.

 

(b)
Seller has withheld and paid each Tax required to have been withheld and paid in connection with amounts paid or owing to any
Employee, independent contractor, creditor, patient, shareholder or other party, and complied with all information reporting and
backup withholding provisions of applicable Law.

 

(c)
No extensions or waivers of statutes of limitations have been given or requested with respect to any Taxes of Seller.

 

(d)
All deficiencies asserted, or assessments made, against Seller as a result of any examinations by any taxing authority have been
fully paid.

 

(e)
Seller is not a party to any Action by any taxing authority. There are no pending or, to Seller’s Knowledge, threatened
Actions by any taxing authority.

 

(f)
There are no Encumbrances for Taxes upon any of the Purchased Assets nor, to Seller’s Knowledge, is any taxing authority
in the process of imposing any Encumbrances for Taxes on any of the Purchased Assets (other than for current Taxes not yet due
and payable).

 

(g)
Seller is not a “foreign person” as that term is used in Treasury Regulations Section 1.1445-2.

 

(h)
Seller is not, and has not been, a party to, or a promoter of, a “reportable transaction” within the meaning of Section
6707A(c)(1) of the Code and Treasury Regulations Section 1.6011 4(b).

 

(i)
Seller (i) has not been a member of an affiliated group within the meaning of Code Section 1504(a), or any similar group defined
under a similar provision of state, local, or non-U.S. law, filing a consolidated income Tax Return, and (ii) does not have any
liability for the Taxes of any Person under Treasury Regulation Section 1.1502-6, or any similar provision of state, local, or
non-U.S. law, as a transferor or successor, by contract or otherwise.

 

(j)
Seller is not (nor will be as of the Closing Date) subject to levies or assessments for unclaimed property under applicable escheat
or unclaimed property laws.

 

Section
4.20 Brokers. No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission
in connection with the transactions contemplated by this Agreement or any Ancillary Document based upon arrangements made by or
on behalf of Seller.

 

    	 	32	 

     

    

 

Section
4.21 Issuance of Exchange Shares. Seller acknowledges that the Exchange Shares are offered pursuant to an exemption from registration
under the Securities Act of 1933, as amended (the “Securities Act”), and applicable State securities laws.
These securities have not been approved or disapproved by the United States Securities and Exchange Commission, nor has said Commission
passed upon the accuracy or adequacy of any information supplied to Seller. Seller has consulted its own counsel, accountant and/or
other advisors concerning its acquisition of the Exchange Shares. Seller represents that it is acquiring the Exchange Shares for
its own account for investment purposes. Seller must bear the economic risk of the investment for an indefinite period of time,
as the Common Stock has not been registered under applicable securities laws and therefore cannot be sold unless it is subsequently
so registered or a registration exemption is available. A legend will be placed on the stock certificate representing the Exchange
Shares indicating that the Common Stock has not been registered under any securities law and is subject to restrictions on transferability
and sale and stop transfer instructions will be issued to the Company’s Transfer Agent with respect to the Common Stock.

 

ARTICLE
V

REPRESENTATIONS AND WARRANTIES OF MEDOVEX

 

Except
as set forth in the correspondingly numbered Section of the Disclosure Schedules, Medovex represents and warrants to Seller that
the statements contained in this ARTICLE V are true and correct as of the date hereof and as of the Closing Date.

 

Section
5.01 Organization and Qualification of Buyer. Buyer is a corporation duly formed, validly existing and in good standing under
the Laws of the state of Nevada. Medovex is a corporation duly formed, validly existing and in good standing under the Laws of
the state of Nevada and has full corporate power and authority to own, operate or lease the properties and assets now owned, operated
or leased by each Medovex Member and to carry on the Medovex Business as currently conducted. Section 4.01 of the Disclosure Schedules
sets forth each jurisdiction in which a Medovex Member is licensed or qualified to do business, and each Medovex Member is duly
licensed or qualified to do business and is in good standing in each jurisdiction in which the ownership of its respective assets
or the operations as currently conducted makes such licensing or qualification necessary.

 

Section
5.02 Authority of Buyer. Each of Buyer and Medovex has full corporate power and authority to enter into this Agreement and
the Ancillary Documents to which each of them is a party, to carry out their respective obligations hereunder and thereunder and
to consummate the transactions contemplated hereby and thereby. The execution and delivery by each of Buyer and Medovex of this
Agreement and any Ancillary Document to which each of them is a party, the performance by Buyer and Medovex of their respective
obligations hereunder and thereunder and the consummation by Buyer and Medovex of the transactions contemplated hereby and thereby
have been duly authorized by all requisite corporate action on the part of Buyer and Medovex. This Agreement has been duly executed
and delivered by Buyer and Medovex, and (assuming due authorization, execution and delivery by Seller) this Agreement constitutes
a legal, valid and binding obligation of each of Buyer and Medovex enforceable against each of Buyer and Medovex in accordance
with its terms. When each Ancillary Document to which Buyer or Medovex is or will be a party has been duly executed and delivered
by Buyer or Medovex, as the case may be (assuming due authorization, execution and delivery by each other party thereto), such
Ancillary Document will constitute a legal and binding obligation of Buyer or Medovex, as the case may be, enforceable against
each of them in accordance with its terms.

 

    	 	33	 

     

    

 

Section
5.03 Capitalization. 

 

(a)
The authorized capital stock of Medovex consists of (i) 49,500,000 shares of voting common stock, par value $0.001 per share (the
“Common Stock”), and (ii) 1,000,000 shares of preferred stock, par value $0.001 per share, of which (A) 45,000
shares of Series A Preferred Stock (the “Series A Preferred Stock”) have been authorized, (B) 10,000 shares
of Series B Preferred Stock (the “Series B Preferred Stock”) have been authorized, and (C) 45,000 shares of
Series C Convertible Preferred Stock (the “Series C Preferred Stock”) have been authorized. As of the date
of this Agreement:

 

(i)
24,642,327 shares of Common Stock are issued and outstanding, all of which have been duly authorized and validly issued and are
fully paid and nonassessable;

 

(ii)
All shares of Series A Preferred Stock that were issued and outstanding, have been converted to shares of Common Stock and are
included in Section 5.03(a)(i);

 

(iii)
9,250 shares of Series B Preferred Stock are issued and outstanding, all of which have been duly authorized and validly issued
and are fully paid and nonassessable;

 

(iv)
No shares of Series C Preferred Stock are issued and outstanding prior to the consummation of the Closing, but such number of
shares of Series C Preferred Stock calculated in accordance with Section 2.05 will be issued and outstanding as a part of the
Closing, all of which have been duly authorized and validly issued and are fully paid and nonassessable;

 

(v)
925,000 shares of Common Stock are reserved for issuance upon conversion of the outstanding Series B Preferred Stock;

 

(vi)
9,337,548 shares of Common Stock are reserved for issuance upon exercise of warrants of Medovex that are outstanding as of October
12, 2018 (the “Warrants”);

 

(vii)
1,960,324 shares of Common Stock are reserved for issuance upon exercise of outstanding options to purchase Common Stock under
the 2013 Stock Option Plan and 689,676 shares of Common Stock are reserved for future grants pursuant to the 2013 Stock Option
Plan; and

 

    	 	34	 

     

    

 

(viii)
1,875,000 shares of Common Stock are reserved for issuance upon conversion of 12% Senior Secured Convertible Notes.

 

(b)
The authorized capital stock of Buyer consists of 1,000 shares of voting common stock, par value $0.001 per share, of which 1,000
shares are issued and outstanding and owned by Medovex.

 

Other
than as set forth above and as contemplated by Section 6.04(b), as of the date of this Agreement and as of the Closing Date there
are no outstanding obligations, options, warrants or other rights to acquire shares of any class of capital stock of Medovex or
a Medovex Member or any outstanding securities or other instruments convertible into shares of capital stock of Medovex or a Medovex
Member.

 

Section
5.04 Series C Preferred Stock of Medovex to be Delivered. The Series C Preferred Stock and all other Additional Exchange Shares
to be delivered by Buyer to RMS pursuant to this Agreement, when delivered, shall have been duly and validly authorized and issued
by Medovex and shall be fully paid and nonassessable.

 

Section
5.05 No Conflicts; Consents. The execution, delivery and performance by each of Buyer and Medovex of this Agreement and the
Ancillary Documents to which each of them is a party, and the consummation of the transactions contemplated hereby and thereby,
do not and will not: (a) conflict with or result in a violation or breach of, or default under, any provision of the certificate
of incorporation, by-laws or other organizational documents of any Medovex Member; (b) conflict with or result in a violation
or breach of any provision of any Law or Governmental Order applicable to a Medovex Member; (c) require the consent, notice or
other action by any Person under, conflict with, result in a violation or breach of, constitute a default or an event that, with
or without notice or lapse of time or both, would constitute a default under, result in the acceleration of or create in any party
the right to accelerate, terminate, modify or cancel any Contract or Permit to which a Medovex Member is a party or by which a
Medovex Member or its respective business is bound or to which any of their respective assets are subject (including any contract);
or (d) result in the creation or imposition of any Encumbrance other than Permitted Encumbrances on any assets of a Medovex Member.
Except as set forth in Section 5.05 of the Disclosure Schedules, no consent, approval, Permit, Governmental Order, declaration
or filing with, or notice to, any Governmental Authority is required by or with respect to any Medovex Member in connection with
the execution and delivery of this Agreement or any of the Ancillary Documents and the consummation of the transactions contemplated
hereby and thereby.

 

Section
5.06 Brokers. No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission
in connection with the transactions contemplated by this Agreement or any Ancillary Document based upon arrangements made by or
on behalf of any Medovex Member.

 

    	 	35	 

     

    

 

Section
5.07 Legal Proceedings. There are no Actions pending or, to Medovex’s Knowledge, threatened against or by any Medovex
Member or any Affiliate of a Medovex Member (a) relating to or affecting their business, operations, or assets, or (b) that challenge
or seek to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement. No event has occurred or circumstances
exist that may give rise or serve as a basis for any such Action. There are no outstanding Governmental Orders and no unsatisfied
judgments, penalties or awards against, relating to or affecting any Medovex Member.

 

Section
5.08 Financial Statement. Buyer and Medovex have provided Seller true and complete copies of the Medovex audited consolidated
financial statements consisting of the balance sheet of the Medovex Business as of December 31, 2016 and December 31, 2017 and
the related statements of income and retained earnings, stockholders’ equity and cash flow for the years then ended (the
“Audited Medovex Financial Statements”), and Medovex unaudited consolidated financial statements consisting
of the balance sheet of the Medovex Business as of June 30, 2018 and the related statements of income and retained earnings, stockholders’
equity and cash flow for the period then ended (the “Interim Medovex Financial Statements” and together with
the Audited Medovex Financial Statements, the “Medovex Financial Statements”) have been delivered to Seller.
The Medovex Financial Statements have been prepared in accordance with GAAP applied on a consistent basis throughout the period
involved, subject, in the case of the Interim Medovex Financial Statements, to normal and recurring year-end adjustments (the
effect of which will not be materially adverse) and the absence of notes (that, if presented, would not differ materially from
those presented in the Audited Medovex Financial Statements). Except as set forth on Schedule 5.08, the Medovex Financial Statements
are based on the books and records of the Medovex Business, and fairly present in all material respects the financial condition
of the Medovex Business as of the respective dates they were prepared and the results of the operations of the Medovex Business
for the periods indicated. Medovex maintains a standard system of accounting and internal controls over financial reporting that
is sufficient to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial
statements in accordance with GAAP. The consolidated balance sheet of Medovex as of December 31, 2017 is referred to herein as
the “Medovex Balance Sheet” and the date thereof as the “Medovex Balance Sheet Date” and
the consolidated balance sheet of Medovex as of June 30, 2018 is referred to herein as the “Interim Medovex Balance Sheet”
and the date thereof as the “Interim Medovex Balance Sheet Date.”

 

Section
5.09 Undisclosed Liabilities. No Medovex Member has any Liabilities, except (a) those which are adequately reflected or reserved
against in the Medovex Balance Sheet as of the Medovex Balance Sheet Date, and (b) those which have been incurred in the ordinary
course of business consistent with past practice since the Medovex Balance Sheet Date and which are not, individually or in the
aggregate, material in amount.

 

Section
5.10 Current Ratio. On the Closing Date, Medovex will have a ratio on a consolidated basis of current assets to current liabilities
of 1:1, as such ratio is defined and calculated, on Schedule 7.03, determined without including the cash on hand required of Medovex
to satisfy the requirements of Section 7.03(d). Current ratio is calculated by dividing current assets by current liabilities,
and measures Medovex’s liquidity or ability to pay off short-term debts.

 

    	 	36	 

     

    

 

Section
5.11 Absence of Certain Changes, Events and Condition. Except as set forth on Schedule 5.11, since the Medovex Balance Sheet
Date, there has not been any:

 

(a)
event, occurrence or development that has had, or could reasonably be expected to have, individually or in the aggregate, a Material
Adverse Effect;

 

(b)
declaration or payment of any distributions on or in respect of any Medovex Member’s corporate interests or acquisition
or disposition of any Medovex Member’s business (whether by merger, sale of equity, sale of assets, or otherwise);

 

(c)
material change in any method of accounting or accounting practice for the business of any Medovex Member;

 

(d)
material change in cash management practices and policies, practices and procedures with respect to collection of accounts receivable,
establishment of reserves for uncollectible accounts receivable, accrual of accounts receivable, prepayment of expenses, payment
of trade accounts payable, accrual of other expenses and deferral of revenue;

 

(e)
entry into any Contract by any Medovex Member that would constitute a Medovex Material Contract;

 

(f)
incurrence, assumption or guarantee of any indebtedness for borrowed money in connection with the business of any Medovex Member
except unsecured current obligations and Liabilities incurred in the ordinary course of business consistent with past practice;

 

(g)
transfer, assignment, sale or other disposition of any Medovex Member’s assets shown or reflected in the Medovex Balance
Sheet;

 

(h)
cancellation of any debts or claims or amendment, termination or waiver of any rights constituting a Medovex Member’s assets;

 

(i)
transfer or assignment of or grant of any license or sublicense under or with respect to any Medovex Member’s Intellectual
Property Assets or Intellectual Property Agreements (except non-exclusive licenses or sublicenses granted in the ordinary course
of business consistent with past practice);

 

(j)
abandonment or lapse of or failure to maintain in full force and effect any Medovex Member’s Intellectual Property Registration,
or failure to take or maintain reasonable measures to protect the confidentiality or value of any Medovex Member’s Trade
Secrets included in the Intellectual Property Assets;

 

(k)
material damage, destruction or loss, or any material interruption in use, of any Medovex Member’s assets, whether or not
covered by insurance;

 

(l)
acceleration, termination, material modification to or cancellation of any Medovex Material Contract or Permit;

 

    	 	37	 

     

    

 

(m)
imposition of any Encumbrance upon any assets of a Medovex Member;

 

(n)
(i) grant of any bonuses, whether monetary or otherwise, or increase in any wages, salary, severance, pension or other compensation
or benefits in respect of any current or former employees, officers, directors, independent contractors or consultants of any
Medovex Member, other than as provided for in any written agreements or required by applicable Law or other than in the ordinary
course of business consistent with past practice, (ii) change in the terms of employment for any employee of any Medovex Member
or any termination of any employees, or (iii) action to accelerate the vesting or payment of any compensation or benefit for any
current or former employee, officer, director, consultant or independent contractor of any Medovex Member;

 

(o)
adoption, modification or termination of any: (i) employment, severance, retention or other agreement with any current or former
employee, officer, director, independent contractor or consultant of a Medovex Member, other than in the ordinary course of business
consistent with past practice, or (ii) a Medovex Benefit Plan;

 

(p)
any loan to (or forgiveness of any loan to), or entry into any other transaction with, any current or former directors, officers
or employees of any Medovex Member;

 

(q)
adoption of any plan of merger, consolidation, reorganization, liquidation or dissolution or filing of a petition in bankruptcy
under any provisions of federal or state bankruptcy Law or consent to the filing of any bankruptcy petition against it under any
similar Law;

 

(r)
purchase, lease or other acquisition of the right to own, use or lease any property or assets in connection with the business
of any Medovex Member; or

 

(s)
any Contract to do any of the foregoing, or any action or omission that would result in any of the foregoing;

 

(t)
modification, amendment or restatement of any outstanding option, warrant, stock options, or other security convertible into Common
Stock or Series B Preferred Stock except as permitted pursuant to Section 6.04(b); or

 

(u)
issuance of any capital stock, option, warrant, security, or other right to acquire capital stock of Medovex that is not Common
Stock, or convertible into or a right to acquire only Common Stock.

 

Section
5.12 Material Contracts.

 

(a)
Section 5.12(a) of the Disclosure Schedules lists each of the following Contracts (x) by which any of the assets of a Medovex
Member are bound or affected or (y) to which any Medovex Member is a party or by which it is bound in connection with the business
of any Medovex Member or the assets of any Medovex Member (such Contracts, together with all Contracts concerning the occupancy,
management or operation of any Medovex Leased Real Property (including without limitation, brokerage contracts) listed or otherwise
disclosed in Section 5.13 of the Disclosure Schedules and all Medovex Intellectual Property Agreements being “Medovex
Material Contracts”):

 

    	 	38	 

     

    

 

(i)
all Contracts which, in each case, cannot be cancelled without penalty or without more than 90 days’ notice;

 

(ii)
all Contracts that provide for the indemnification of any Person or the assumption of any Tax, environmental or other Liability
of any Person;

 

(iii)
all Contracts that relate to the acquisition or disposition of any business, a material amount of stock or assets of any other
Person or any real property (whether by merger, sale of stock, sale of assets or otherwise);

 

(iv)
all broker, distributor, dealer, manufacturer’s representative, franchise, agency, sales promotion, market research, marketing,
consulting and advertising Contracts;

 

(v)
all employment agreements and Contracts with independent contractors or consultants (or similar arrangements) and which are not
cancellable without material penalty or without more than 30 days’ notice;

 

(vi)
except for Contracts relating to trade receivables, all Contracts relating to indebtedness (including, without limitation, guarantees);

 

(vii)
all Contracts that limit or purport to limit the ability of any Medovex Member to compete in any line of business or with any
Person or in any geographic area or during any period of time;

 

(viii)
all joint venture, partnership or similar Contracts; and

 

(ix)
all other Contracts that are material to the operation of the Medovex Business and not previously disclosed pursuant to this Section
5.12.

 

(b)
Each Medovex Material Contract is valid and binding on the applicable Medovex Member in accordance with its terms and is in full
force and effect. No Medovex Member or, to Medovex’s Knowledge, any other party thereto is in breach of or default under
(or is alleged to be in breach of or default under), or has provided or received any notice of any intention to terminate, any
Medovex Material Contract. No event or circumstance has occurred that, with notice or lapse of time or both, would constitute
an event of default under any Medovex Material Contract or result in a termination thereof or would cause or permit the acceleration
or other changes of any right or obligation or the loss of any benefit thereunder. Complete and correct copies of each Medovex
Material Contract (including all modifications, amendments and supplements thereto and waivers thereunder) have been made available
to Seller. There are no material disputes pending or, to Medovex’s Knowledge, threatened under any Medovex Material Contract.

 

    	 	39	 

     

    

 

Section
5.13 Medovex Leased Real Property.

 

(a)
Section 5.13(a) of the Disclosure Schedules sets forth each parcel of real property leased by any Medovex Member and used in or
necessary for the conduct of the business of any Medovex Member as currently conducted (together with all rights, title and interest
of any Medovex Member in and to leasehold improvements relating thereto, including, but not limited to, security deposits, reserves
or prepaid rents paid in connection therewith, collectively, the “Medovex Leased Real Property”), and a true
and complete list of all leases, subleases, licenses, concessions and other agreements (whether written or oral), including all
amendments, extensions renewals, guaranties and other agreements with respect thereto, pursuant to which any Medovex Member holds
any Medovex Leased Real Property (collectively, the “Medovex Leases”). Medovex has delivered to Seller a true
and complete copy of each Medovex Lease. With respect to each Medovex Lease:

 

(i)
such Medovex Lease is valid, binding, enforceable and in full force and effect, and the applicable Medovex Member enjoys peaceful
and undisturbed possession of the Medovex Leased Real Property;

 

(ii)
the applicable Medovex Member is not in breach or default under such Medovex Lease, and no event has occurred or circumstance
exists which, with the delivery of notice, passage of time or both, would constitute such a breach or default, and the applicable
Medovex Member has paid all rent due and payable under such Medovex Lease;

 

(iii)
the applicable Medovex Member has not received nor given any notice of any default or event that with notice or lapse of time,
or both, would constitute a default by the applicable Medovex Member under any of the Medovex Leases and, to the Knowledge of
Medovex, no other party is in default thereof, and no party to any Medovex Lease has exercised any termination rights with respect
thereto;

 

(iv)
No Medovex Member has subleased, assigned or otherwise granted to any Person the right to use or occupy such Medovex Leased Real
Property or any portion thereof; and

 

(v)
No Medovex Member has pledged, mortgaged or otherwise granted an Encumbrance on its leasehold interest in any Medovex Leased Real
Property.

 

(b)
No Medovex Member has received any written notice of (i) material violations of building codes and/or zoning ordinances or other
governmental or regulatory Laws affecting the Medovex Leased Real Property, (ii) existing, pending, or, to Medovex’s Knowledge,
threatened condemnation proceedings affecting the Medovex Leased Real Property, or (iii) existing, pending or threatened zoning,
building code or other moratorium proceedings, or similar matters which could reasonably be expected to adversely affect the ability
to operate the Medovex Leased Real Property as currently operated. Neither the whole nor any material portion of any Medovex Leased
Real Property has been damaged or destroyed by fire or other casualty.

 

    	 	40	 

     

    

 

(c)
The Medovex Leased Real Property is sufficient for the continued conduct of the business of the applicable Medovex Member after
the Closing in substantially the same manner as conducted prior to the Closing and constitutes all of the real property necessary
to conduct the business of the applicable Medovex Member as currently conducted.

 

Section
5.14 Intellectual Property.

 

(a)
Section 5.14(a) of the Disclosure Schedules contains a correct, current and complete list of: (i) all Medovex Intellectual Property
Registrations, (ii) all unregistered Medovex Trademarks and Medovex Trade Secrets included in the Medovex Intellectual Property
Assets; (iii) all proprietary software included in the Medovex Intellectual Property Assets; and (iv) all other Medovex Intellectual
Property Assets that are used or held for use in the conduct of the business of any Medovex Member as currently conducted or proposed
to be conducted. All required filings and fees related to the Medovex Intellectual Property Registrations have been timely filed
with and paid to the relevant Governmental Authorities and authorized registrars, and all Medovex Intellectual Property Registrations
are otherwise in good standing. Medovex has provided Seller with true and complete copies of file histories, documents, certificates,
office actions, correspondence and other materials related to all Medovex Intellectual Property Registrations.

 

(b)
Section 5.14(b) of the Disclosure Schedules contains a correct, current and complete list of all Medovex Intellectual Property
Agreements. Medovex has provided Seller with true and complete copies (or in the case of any oral agreements, a complete and correct
written description) of all such Medovex Intellectual Property Agreements, including all modifications, amendments and supplements
thereto and waivers thereunder.

 

(c)
The applicable Medovex Member is the sole and exclusive legal and beneficial, and with respect to the Medovex Intellectual Property
Registrations, record, owner of all right, title and interest in and to the Medovex Intellectual Property Assets, and has the
valid and enforceable right to use all other Medovex Intellectual Property used or held for use in or necessary for the conduct
of the business of the applicable Medovex Member as currently conducted or as proposed to be conducted, in each case, free and
clear of Encumbrances other than Permitted Encumbrances. The applicable Medovex Member has entered into binding, valid and enforceable
written Contracts with each current and former employee and independent contractor whereby such employee or independent contractor
(i) acknowledges the applicable Medovex Member’s exclusive ownership of all Medovex Intellectual Property Assets invented,
created or developed by such employee or independent contractor within the scope of his or her employment or engagement with the
applicable Medovex Member; (ii) grants to the applicable Medovex Member a present, irrevocable assignment of any ownership interest
such employee or independent contractor may have in or to such Medovex Intellectual Property; and (iii) irrevocably waives any
right or interest, including any moral rights, regarding such Medovex Intellectual Property, to the extent permitted by applicable
Law. Medovex has provided Seller with true and complete copies of all such Contracts.

 

    	 	41	 

     

    

 

(d)
Neither the execution, delivery or performance of this Agreement, nor the consummation of the transactions contemplated hereunder,
will result in the loss or impairment of, or payment of any additional amounts with respect to, nor require the consent of any
other Person in respect of, the applicable Medovex Member’s right to own or use any Medovex Intellectual Property Assets
or any Medovex Intellectual Property subject to any Medovex Intellectual Property Agreement.

 

(e)
All of the Medovex Intellectual Property Assets are valid and enforceable, and all Medovex Intellectual Property Registrations
are subsisting and in full force and effect. Medovex has taken all necessary steps to maintain and enforce the Medovex Intellectual
Property Assets and to preserve the confidentiality of all Medovex Trade Secrets included in the Medovex Intellectual Property
Assets, including by requiring all Persons having access thereto to execute binding, written non-disclosure agreements.

 

(f)
To Medovex’s Knowledge, the conduct of the Medovex Business as currently and formerly conducted and as proposed to be conducted,
including the use of the Medovex Intellectual Property Assets and any Medovex Intellectual Property licensed under the Medovex
Intellectual Property Agreements in connection therewith, and the products, processes, and services of the Medovex Business have
not infringed, misappropriated, or otherwise violated and will not infringe, misappropriate, or otherwise violate the Medovex
Intellectual Property or other rights of any Person. To Medovex’s Knowledge, no Person has infringed, misappropriated, or
otherwise violated any Medovex Intellectual Property Assets or any Medovex Intellectual Property licensed under the Medovex Intellectual
Property Agreements.

 

(g)
There are no Actions (including any opposition, cancellation, revocation, review, or other proceeding) settled, pending or, to
Medovex’s Knowledge, threatened (including in the form of offers to obtain a license): (i) alleging any infringement, misappropriation,
or other violation of the Medovex Intellectual Property of any Person by a Medovex Member in the conduct of a Medovex Member’s
business; (ii) challenging the validity, enforceability, registrability, patentability, or ownership of any Medovex Intellectual
Property Assets; or (iii) by a Medovex Member or any other Person alleging any infringement, misappropriation, or violation by
any Person of any Medovex Intellectual Property Assets. Medovex is not aware of any facts or circumstances that could reasonably
be expected to give rise to any such Action. No Medovex Member is subject to any outstanding Governmental Order (including any
motion or petition therefor) that does or could reasonably be expected to restrict or impair the use of any Medovex Intellectual
Property Assets.

 

Section
5.15 Accounts Receivable. Subject to Section 5.15 of the Disclosure Schedule, the Medovex Accounts Receivable reflected on
the Interim Medovex Balance Sheet and the Medovex Accounts Receivable arising after the date thereof (a) have arisen from bona
fide transactions entered into by the applicable Medovex Member involving the sale of goods or the rendering of services in the
ordinary course of business consistent with past practice; (b) constitute only valid, undisputed claims of the applicable Medovex
Member not subject to claims of set-off or other defenses or counterclaims other than normal cash discounts accrued in the ordinary
course of business consistent with past practice; and (c) subject to a reserve for bad debts shown on the Interim Medovex Balance
Sheet or, with respect to Medovex Accounts Receivable arising after the Interim Medovex Balance Sheet Date, on the accounting
records of the Medovex Business, are collectible in full within 90 days after billing. The reserve for bad debts shown on the
Interim Medovex Balance Sheet or, with respect to Medovex Accounts Receivable arising after the Interim Medovex Balance Sheet
Date, on the accounting records of the Medovex Business have been determined in accordance with GAAP, consistently applied, subject
to normal year-end adjustments and the absence of disclosures normally made in footnotes.

 

    	 	42	 

     

    

 

Section
5.16 Insurance. Section 5.16 of the Disclosure Schedule sets forth (a) a true and complete list of all current policies or
binders of fire, liability, malpractice, umbrella liability, real and personal property, workers’ compensation, vehicular,
fiduciary liability and other casualty and property insurance maintained by a Medovex Member and relating to the Medovex Business
(collectively, the “Medovex Insurance Policies”); and (b) with respect to the Medovex Business, a list of all
pending claims and the claims history for each Medovex Member since December 31, 2016. There are no claims related to the Medovex
Business pending under any such Medovex Insurance Policies as to which coverage has been questioned, denied or disputed or in
respect of which there is an outstanding reservation of rights. No Medovex Member nor any of its Affiliates has received any written
notice of cancellation of, premium increase with respect to, or alteration of coverage under, any of such Medovex Insurance Policies.
All premiums due on such Medovex Insurance Policies have either been paid or, if not yet due, accrued. All such Medovex Insurance
Policies (a) are in full force and effect and enforceable in accordance with their terms; (b) are provided by carriers who are
financially solvent; and (c) have not been subject to any lapse in coverage. No Medovex Member is in default under, or has otherwise
failed to comply with, in any material respect, any provision contained in any such Medovex Insurance Policy. The Medovex Insurance
Policies are of the type and in the amounts customarily carried by Persons conducting a business similar to the Medovex Business
and are sufficient for compliance with all applicable Laws and Contracts to which the applicable Medovex Member is a party or
by which it is bound. True and complete copies of the Medovex Insurance Policies have been made available to Seller.

 

Section
5.17 Compliance with Laws; Permits.

 

(a)
To Medovex’s Knowledge, each Medovex Member has complied, and is now complying, with all Laws applicable to the conduct
of the Medovex Business as currently conducted or the ownership and use of its assets.

 

(b)
All Permits required for a Medovex Member to conduct its business as currently conducted or for the ownership and use of its assets
have been obtained by the applicable Medovex Member and are valid and in full force and effect. All fees and charges with respect
to such Permits as of the date hereof have been paid in full. Section 5.17(b) of the Disclosure Schedules lists all current Permits
issued to the Medovex Members which are related to the conduct of the Medovex Business as currently conducted, including the names
of the Permits and their respective dates of issuance and expiration. No event has occurred that, with or without notice or lapse
of time or both, would reasonably be expected to result in the revocation, suspension, lapse or limitation of any of the Medovex’s
Permits.

 

    	 	43	 

     

    

 

Section
5.18 Employee Benefit Matters.

 

(a)
The only Medovex Benefit Plan maintained by any Medovex Member is a for health benefits.

 

(b)
With respect to the Medovex Benefit Plan, Medovex has made available to Seller accurate, current and complete copies of each of
the following: (i) the plan document together with all amendments; (ii) copies of any funding arrangements, custodial agreements,
insurance policies and contracts, administration agreements and similar agreements; (iii) copies of any summary plan descriptions,
summaries of material modifications, summaries of benefits and coverage, COBRA communications, employee handbooks and any other
written communications relating to the Medovex Benefit Plan; and (iv) copies of material notices, letters or other correspondence
from the Internal Revenue Service, Department of Labor, Department of Health and Human Services, Pension Benefit Guaranty Corporation
or other Governmental Authority relating to the Medovex Benefit Plan.

 

(c)
The Medovex Benefit Plan has been established, administered and maintained in accordance with its terms and in compliance with
all applicable Laws (including ERISA, the Code and any applicable local Laws). All benefits, contributions and premiums relating
to the Medovex Benefit Plan have been timely paid in accordance with the terms of such Medovex Benefit Plan and all applicable
Laws and accounting principles, and all benefits accrued under any unfunded Medovex Benefit Plan have been paid, accrued or otherwise
adequately reserved to the extent required by, and in accordance with GAAP.

 

(d)
Neither Medovex nor any of its ERISA Affiliates has (i) incurred or reasonably expects to incur, either directly or indirectly,
any material Liability under Title I or Title IV of ERISA or related provisions of the Code or applicable local Law relating to
employee benefit plans; (ii) withdrawn from any Benefit Plan; (iii) engaged in any transaction which would give rise to liability
under Section 4069 or Section 4212(c) of ERISA; (iv) incurred taxes under Section 4971 of the Code with respect to any Single
Employer Plan; or (v) participated in a multiple employer welfare arrangements (MEWA).

 

(e)
With respect to the Medovex Benefit Plan (i) such plan is not a Multiemployer Plan; (ii) except as set forth in Section 5.18(e)
of the Disclosure Schedules, no such plan is a “multiple employer plan” within the meaning of Section 413(c) of the
Code or a “multiple employer welfare arrangement” (as defined in Section 3(40) of ERISA); (iii) no Action has been
initiated by the Pension Benefit Guaranty Corporation to terminate any such plan or to appoint a trustee for any such plan; (iv)
no such plan or the plan of any ERISA Affiliate maintained or contributed to within the last six (6) years is a Single Employer
Plan subject to Title IV of ERISA; and (v) no “reportable event,” as defined in Section 4043 of ERISA, with respect
to which the reporting requirement has not been waived, has occurred with respect to any such plan.

 

    	 	44	 

     

    

 

(f)
Other than as required under Sections 601 to 608 of ERISA or other applicable Law, the Medovex Benefit Plan does not provide post-termination
or retiree health benefits to any individual for any reason.

 

(g)
There is no pending or, to Medovex’s Knowledge, threatened Action relating to the Medovex Benefit Plan (other than routine
claims for benefits), and the Medovex Benefit Plan has not within the three years prior to the date hereof been the subject of
an examination or audit by a Governmental Authority or the subject of an application or filing under, or is a participant in,
an amnesty, voluntary compliance, self-correction or similar program sponsored by any Governmental Authority.

 

(h)
There has been no amendment to, announcement by Medovex or any of its Affiliates relating to, or change in employee participation
or coverage under, the Medovex Benefit Plan or collective bargaining agreement that would increase the annual expense of maintaining
such plan above the level of the expense incurred for the most recently completed fiscal year (other than on a de minimis basis)
with respect to any director, officer, employee, consultant or independent contractor of the business, as applicable. No Medovex
Member has any commitment or obligation or has made any representations to any director, officer, employee, consultant or independent
contractor of the business of any Medovex Member, whether or not legally binding, to adopt, amend, modify or terminate any Medovex
Benefit Plan or any collective bargaining agreement.

 

(i)
The Medovex Benefit Plan is not subject to Section 409A of the Code. No Medovex Member has any obligation to gross up, indemnify
or otherwise reimburse any individual for any excise taxes, interest or penalties incurred pursuant to Section 409A of the Code.

 

(j)
Neither the execution of this Agreement nor any of the transactions contemplated by this Agreement will (either alone or upon
the occurrence of any additional or subsequent events): (i) entitle any current or former director, officer, employee, independent
contractor or consultant of the business of any Medovex Member to severance pay or any other payment; (ii) accelerate the time
of payment, funding or vesting, or increase the amount of compensation (including stock-based compensation) due to any such individual;
(iii) increase the amount payable under or result in any other material obligation pursuant to any Medovex Benefit Plan; (iv)
result in “excess parachute payments” within the meaning of Section 280G(b) of the Code; or (v) require a “gross-up”
or other payment to any “disqualified individual” within the meaning of Section 280G(c) of the Code.

 

Section
5.19 Employment Matters.

 

(a)
Section 5.19(a) of the Disclosure Schedules contains a list of all persons who are employees, independent contractors or consultants
of the Medovex Members as of the date hereof, including any employee who is on a leave of absence of any nature, paid or unpaid,
authorized or unauthorized, and sets forth for each such individual the following: (i) name; (ii) title or position (including
whether full-time or part-time); (iii) hire or retention date; (iv) current annual base compensation rate or contract fee; (v)
commission, bonus or other incentive-based compensation; and (vi) a description of the fringe benefits provided to each such individual
as of the date hereof. As of the date hereof, all compensation, including wages, commissions, bonuses, fees and other compensation,
payable to all employees, independent contractors or consultants of any Medovex Member for services performed on or prior to the
date hereof have been paid in full and there are no outstanding agreements, understandings or commitments of any Medovex Member
with respect to any compensation, commissions, bonuses or fees.

 

    	 	45	 

     

    

 

(b)
No Medovex Member is, and has not been a party to, bound by, or negotiating any collective bargaining agreement or other Contract
with a union, works council or labor organization (collectively, “Union”), and there is not, and has not been
any Union representing or purporting to represent any employee of any Medovex Member, and no Union or group of employees is seeking
or has sought to organize employees for the purpose of collective bargaining. There has never been, nor has there been any threat
of, any strike, slowdown, work stoppage, lockout, concerted refusal to work overtime or other similar labor disruption or dispute
affecting any Medovex Member or any employees of any Medovex Member. No Medovex Member has any duty to bargain with any Union.

 

(c)
To Medovex’s Knowledge, each Medovex Member is and has been in compliance with all applicable Laws pertaining to employment
and employment practices to the extent they relate to employees, consultants and independent contractors of any Medovex Member,
including all Laws relating to labor relations, equal employment opportunities, fair employment practices, employment discrimination,
harassment, retaliation, reasonable accommodation, disability rights or benefits, immigration, wages, hours, overtime compensation,
child labor, hiring, promotion and termination of employees, working conditions, meal and break periods, privacy, health and safety,
workers’ compensation, leaves of absence, paid sick leave and unemployment insurance. All individuals characterized and
treated by a Medovex Member as consultants or independent contractors of a Medovex Member are properly treated as independent
contractors under all applicable Laws. All employees of a Medovex Member classified as exempt under the Fair Labor Standards Act
and state and local wage and hour laws are properly classified. Each Medovex Member is in compliance with and has complied with
all immigration laws, including Form I-9 requirements and any applicable mandatory E-Verify obligations. There are no Actions
against any Medovex Member pending, or to the Medovex’s Knowledge, threatened to be brought or filed, by or with any Governmental
Authority or arbitrator in connection with the employment of any current or former applicant, employee, consultant or independent
contractor of any Medovex Member, including, without limitation, any charge, investigation or claim relating to unfair labor practices,
equal employment opportunities, fair employment practices, employment discrimination, harassment, retaliation, reasonable accommodation,
disability rights or benefits, immigration, wages, hours, overtime compensation, employee classification, child labor, hiring,
promotion and termination of employees, working conditions, meal and break periods, privacy, health and safety, workers’
compensation, leaves of absence, paid sick leave, unemployment insurance or any other employment related matter arising under
applicable Laws.

 

    	 	46	 

     

    

 

(d)
Each Medovex Member has complied with the WARN Act, and it has no plans to undertake any action in the future that would trigger
the WARN Act.

 

Section
5.20 Taxes.

 

(a)
All Tax Returns with respect to each Medovex Member required to be filed by a Medovex Member for any Pre-Closing Tax Period have
been, or will be, timely filed. Such Tax Returns are, or will be when filed, true, complete and correct in all respects. All Taxes
due and owing by each Medovex Member (whether or not shown on any Tax Return) have been, or will be, timely paid. No claim has
ever been made by a taxing authority in a jurisdiction where no Medovex Member files Tax Returns that a Medovex Member is or may
be subject to taxation by that jurisdiction.

 

(b)
Each Medovex Member withheld and paid each Tax required to have been withheld and paid in connection with amounts paid or owing
to any Employee, independent contractor, creditor, patient, shareholder or other party, and complied with all information reporting
and backup withholding provisions of applicable Law.

 

(c)
No extensions or waivers of statutes of limitations have been given or requested with respect to any Taxes of any Medovex Member.

 

(d)
All deficiencies asserted, or assessments made, against any Medovex Member as a result of any examinations by any taxing authority
have been fully paid.

 

(e)
No Medovex Member is a party to any Action by any taxing authority. There are no pending or, to Medovex’s Knowledge, threatened
Actions by any taxing authority.

 

(f)
There are no Encumbrances for Taxes upon any assets of any Medovex Member nor, to Medovex’s Knowledge, is any taxing authority
in the process of imposing any Encumbrances for Taxes (other than for current Taxes not yet due and payable).

 

(g)
No Medovex Member is a “foreign person” as that term is used in Treasury Regulations Section 1.1445-2.

 

(h)
No Medovex Member is, and has not been, a party to, or a promoter of, a “reportable transaction” within the meaning
of Section 6707A(c)(1) of the Code and Treasury Regulations Section 1.60114(b).

 

(i)
No Medovex Member is (nor will be as of the Closing Date) subject to levies or assessments for unclaimed property under applicable
escheat or unclaimed property laws.

 

    	 	47	 

     

    

 

ARTICLE
VI

COVENANTS

 

Section
6.01 Conduct of Business Prior to the Closing. From the date hereof until the Closing, except as otherwise provided in this
Agreement or consented to in writing by Seller or Medovex as the case may be (which consent shall not be unreasonably withheld
or delayed), Seller and Medovex shall each (x) conduct their Seller Business and Medovex Business, as applicable in the ordinary
course of business consistent with past practice; and (y) use reasonable best efforts to maintain and preserve intact its current
business organization, operations and franchise and to preserve the rights, franchises, goodwill and relationships of its employees,
contractors, patients, lenders, suppliers, regulators and others having relationships with their business. Seller and Medovex
acknowledge and agree that Medovex may incur accounts payable in the ordinary course of the Medovex Business that are not paid
until Closing; subject to the obligations of Medovex as set forth in Sections 5.10, 7.03(d) and 7.03(e). Without limiting the
foregoing, from the date hereof until the Closing Date, Seller and Medovex shall:

 

(a)
preserve the ownership and use of their respective assets and maintain all Permits required for the conduct of their business
as currently conducted;

 

(b)
pay the debts, Taxes and other obligations of their business when due, except as otherwise agreed to in this Section 6.01;

 

(c)
continue to collect Accounts Receivable in a manner consistent with past practice, without discounting such Accounts Receivable;

 

(d)
maintain their properties and assets in the same condition as they were on the date of this Agreement, subject to reasonable wear
and tear;

 

(e)
continue in full force and effect without modification all RMS Insurance Policies and Medovex Insurance Policies, as applicable,
except as required by applicable Law;

 

(f)
defend and protect its properties and assets from infringement or usurpation;

 

(g)
perform all of its obligations under all RMS Material Contracts and Medovex Material Contracts, as the case may be;

 

(h)
maintain its Books and Records in accordance with past practice;

 

(i)
comply in all material respects with all Laws applicable to the conduct of its business or the ownership and use of its assets;
and

 

(j)
not take or permit any action that would cause any of the changes, events or conditions described in Section 4.06 or Section 5.11,
as applicable, to occur.

 

Section
6.02 Access to Information. From the date hereof until the Closing, Seller and Medovex shall each (a) afford the other and
its Representatives full and free access to and the right to inspect all of the RMS Leased Real Property and Medovex Leased Real
Property, as applicable, properties, assets, premises, Books and Records, Contracts and other documents and data related to its
business; (b) furnish the other and its Representatives with such financial, operating and other data and information related
to its business as reasonably requested, and (c) instruct each of their Representatives to cooperate with the other in its investigation
of the Seller Business or Medovex Business, as applicable. Any investigation pursuant to this Section 6.02 shall be conducted
in such manner as not to interfere unreasonably with the conduct of the Seller Business or Medovex Business, as applicable. No
investigation by RMS or Medovex, or other information received by RMS or Medovex shall operate as a waiver or otherwise affect
any representation, warranty or agreement given or made by Seller, Medovex or Buyer in this Agreement.

 

    	 	48	 

     

    

 

Section
6.03 No Solicitation of Other Bids.

 

(a)
Seller shall not, and shall not authorize or permit any of its Affiliates or any of its or their Representatives to, directly
or indirectly, (i) encourage, solicit, initiate, facilitate or continue inquiries regarding an Acquisition Proposal; (ii) enter
into discussions or negotiations with, or provide any information to, any Person concerning a possible Acquisition Proposal; or
(iii) enter into any agreements or other instruments (whether or not binding) regarding an Acquisition Proposal. Seller shall
immediately cease and cause to be terminated, and shall cause its Affiliates and all of its and their Representatives to immediately
cease and cause to be terminated, all existing discussions or negotiations with any Persons conducted heretofore with respect
to, or that could lead to, an Acquisition Proposal. For purposes hereof, “Acquisition Proposal” means any inquiry,
proposal or offer from any Person (other than Buyer or any of its Affiliates) relating to the direct or indirect disposition,
whether by sale, merger or otherwise, of all or any portion of the Seller Business or the Purchased Assets.

 

(b)
In addition to the other obligations under this Section 6.03, Seller shall promptly (and in any event within three Business Days
after receipt thereof by Seller or its Representatives) advise Buyer orally and in writing of any Acquisition Proposal, any request
for information with respect to any Acquisition Proposal, or any inquiry with respect to or which could reasonably be expected
to result in an Acquisition Proposal, the material terms and conditions of such request, Acquisition Proposal or inquiry, and
the identity of the Person making the same.

 

(c)
Seller agrees that the rights and remedies for noncompliance with this Section 6.03 shall include having such provision specifically
enforced by any court having equity jurisdiction, it being acknowledged and agreed that any such breach or threatened breach shall
cause irreparable injury to Medovex and Buyer and that money damages would not provide an adequate remedy to Medovex and Buyer.

 

Section
6.04 Notice of Certain Events.

 

(a)
From the date hereof until the Closing, each of Seller and Buyer shall promptly notify the other in writing of:

 

(i)
any fact, circumstance, event or action with respect to such party, the existence, occurrence or taking of which (A) has had,
or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect with respect to such party,
(B) has resulted in, or could reasonably be expected to result in, any representation or warranty made by such party hereunder
not being true and correct or (C) has resulted in, or could reasonably be expected to result in, the failure of any of the conditions
set forth in Section 7.02 to be satisfied;

 

(ii)
any notice or other communication from any Person to such party alleging that the consent of such Person is or may be required
in connection with the transactions contemplated by this Agreement;

 

    	 	49	 

     

    

 

(iii)
any notice or other communication from any Governmental Authority to such party in connection with the transactions contemplated
by this Agreement; and

 

(iv)
any Actions commenced or, to Seller’s Knowledge or Medovex’s Knowledge, as applicable, threatened against, relating
to or involving or otherwise affecting such party or its business, its assets or its liabilities that, if pending on the date
of this Agreement, would have been required to have been disclosed pursuant to this Agreement or that relates to the consummation
of the transactions contemplated by this Agreement.

 

(b)
Subsequent to the execution date of this Agreement, RMS and Medovex agree as follows:

 

(i)
Until such time as all of the Additional Exchange Shares have been issued and delivered to RMS, Medovex may issue and sell only
its Common Stock, warrants to acquire its Common Stock, Series C Preferred Stock, or warrants to acquire its Series C Preferred
Stock (but not any other series of its capital stock, or any option, warrant, security, or other right to acquire or convertible
into any other series of capital stock of Medovex; and

 

(ii)
If Medovex desires to modify, amend or restate any outstanding option, warrant, stock option, or other security convertible into
Common Stock, Series A Preferred Stock, Series B Preferred Stock, or Series C Preferred Stock (exclusive of Exchange Shares),
outstanding on the date of this Agreement, then it can only do so if it first obtains the written consent of the Seller to such
change (with any corresponding conditions imposed by Seller for its consent, if given), and the Seller agrees to respond to such
request within forty-eight hours of it being presented in writing to the Seller;

 

(c)
A party’s receipt of information pursuant to this Section 6.04 shall not operate as a waiver or otherwise affect any representation,
warranty or agreement given or made by another party in this Agreement (including Section 8.02 and Section 9.01(b)) and shall
not be deemed to amend or supplement the Disclosure Schedules.

 

Section
6.05 Employees and Employee Benefits.

 

(a)
Commencing on the Closing Date, Seller shall terminate all employees of the Seller Business who are actively at work on the Closing
Date, and, Buyer will offer employment, on an “at will” basis, to any or all of such employees who meet Buyer’s
standard employment requirements. Seller shall bear any and all obligations and liability under the WARN Act resulting from employment
losses pursuant to this Section 6.05.

 

(b)
Seller shall be solely responsible, and Buyer shall have no obligations whatsoever for, any compensation or other amounts payable
to any current or former employee, officer, director, independent contractor or consultant of the Seller Business, including,
without limitation, hourly pay, commission, bonus, salary, accrued vacation, fringe, pension or profit sharing benefits or severance
pay for any period relating to the service with Seller at any time on or prior to the Closing Date and Seller shall pay all such
amounts to all entitled persons on or prior to the Closing Date.

 

    	 	50	 

     

    

 

(c)
Seller shall remain solely responsible for the satisfaction of all claims for medical, dental, life insurance, health accident
or disability benefits brought by or in respect of current or former employees, officers, directors, independent contractors or
consultants of the Seller Business or the spouses, dependents or beneficiaries thereof, which claims relate to events occurring
on or prior to the Closing Date. Seller also shall remain solely responsible for all worker’s compensation claims of any
current or former employees, officers, directors, independent contractors or consultants of the Seller Business which relate to
events occurring on or prior to the Closing Date. Seller shall pay, or cause to be paid, all such amounts to the appropriate persons
as and when due.

 

(d)
Effective as soon as practicable following the Closing Date, Seller, or any applicable Affiliate, shall effect a transfer of assets
and liabilities (including outstanding loans) from the defined contribution retirement plan that it maintains, to the defined
contribution retirement plan maintained by Buyer, with respect to those employees of the Seller Business who become employed by
Buyer, or an Affiliate of Buyer, in connection with the transactions contemplated by this Agreement. Any such transfer shall be
in an amount sufficient to satisfy Section 414(l) of the Code. Upon the transfer of assets and liabilities into Buyer’s
plan, all transferred account balances from Seller’s plan shall become fully vested.

 

Section
6.06 Confidentiality. From and after the Closing, Seller shall, and shall cause its Affiliates to, hold, and shall use its
reasonable best efforts to cause its or their respective Representatives to hold, in confidence any and all information, whether
written or oral, concerning the Seller Business, except to the extent that Seller can show that such information (a) is generally
available to and known by the public through no fault of Seller, any of its Affiliates or their respective Representatives; or
(b) is lawfully acquired by Seller, any of its Affiliates or their respective Representatives from and after the Closing from
sources which are not prohibited from disclosing such information by a legal, contractual or fiduciary obligation. If Seller or
any of its Affiliates or their respective Representatives are compelled to disclose any information by judicial or administrative
process or by other requirements of Law, Seller shall promptly notify Buyer in writing and shall disclose only that portion of
such information which Seller is advised by its counsel in writing is legally required to be disclosed, provided that Seller
shall use reasonable best efforts to obtain an appropriate protective order or other reasonable assurance that confidential treatment
will be accorded such information.

 

Section
6.07 Non-Competition; Non-Solicitation.

 

(a)
For a period of two years commencing on the Closing Date (the “Restricted Period”), the individuals listed
on Schedule 6.07 attached hereto (the “Restricted Persons”) shall not, and shall not permit any of their respective
Affiliates to, directly or indirectly, (i) engage in or assist others in engaging in the business of any Medovex Member in the
Territory; (ii) have an interest in any Person that engages directly or indirectly in the business of any Medovex Member in the
Territory in any capacity, including as a partner, shareholder, member, employee, principal, agent, trustee or consultant; or
(iii) cause, induce or encourage any actual or prospective patient, supplier or licensor of the business of any Medovex Member
(including any existing or former patient of Seller and any Person that becomes a patient of any Medovex Member after the Closing),
or any other Person who has a material business relationship with the business of any Medovex Member, to terminate or modify any
such actual or prospective relationship. Notwithstanding the foregoing, the Restricted Persons or their respective Affiliates
may own, directly or indirectly, solely as an investment, securities of any Person traded on any national securities exchange
if the Restricted Person or such Affiliate is not a controlling Person of, or a member of a group which controls, such Person
and does not, directly or indirectly, own 5% or more of any class of securities of such Person.

 

    	 	51	 

     

    

 

(b)
During the Restricted Period, the Restricted Persons shall not, and shall not permit any of their respective Affiliates to, directly
or indirectly, hire, engage or solicit any person who is offered employment or engaged as a contractor by Buyer pursuant to Section
6.05(a) or is or was an employee or contractor of the Medovex Business during the Restricted Period, or encourage any such person
to leave such employment or engagement or hire any such employee or contractor who has left such employment except pursuant to
a general solicitation which is not directed specifically to any such individuals.

 

(c)
The Restricted Persons each acknowledge that a breach or threatened breach of this Section 6.07 would give rise to irreparable
harm to Buyer and Medovex, for which monetary damages would not be an adequate remedy, and hereby each agree that in the event
of a breach or a threatened breach by any Restricted Person of any such obligations, Buyer and Medovex shall, in addition to any
and all other rights and remedies that may be available to it in respect of such breach, be entitled to equitable relief, including
a temporary restraining order, an injunction, specific performance and any other relief that may be available from a court of
competent jurisdiction (without any requirement to post bond).

 

(d)
Each Restricted Person acknowledges that the restrictions contained in this Section 6.07 are reasonable and necessary to protect
the legitimate interests of Medovex and Buyer and constitute a material inducement to Buyer, Medovex and Seller to enter into
this Agreement and consummate the transactions contemplated by this Agreement. In the event that any covenant contained in this
Section 6.07 should ever be adjudicated to exceed the time, geographic, product or service or other limitations permitted by applicable
Law in any jurisdiction, then any court is expressly empowered to reform such covenant, and such covenant shall be deemed reformed,
in such jurisdiction to the maximum time, geographic, product or service or other limitations permitted by applicable Law. The
covenants contained in this Section 6.07 and each provision hereof are severable and distinct covenants and provisions. The invalidity
or unenforceability of any such covenant or provision as written shall not invalidate or render unenforceable the remaining covenants
or provisions hereof, and any such invalidity or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such covenant or provision in any other jurisdiction.

 

    	 	52	 

     

    

 

Section
6.08 Approvals and Consents.

 

(a)
Each party hereto shall, as promptly as possible, (i) make, or cause or be made, all filings and submissions required under any
Law applicable to such party or any of its Affiliates; and (ii) use reasonable best efforts to obtain, or cause to be obtained,
all consents, authorizations, orders and approvals from all Governmental Authorities that may be or become necessary for its execution
and delivery of this Agreement and the performance of its obligations pursuant to this Agreement and the Ancillary Documents.
Each party shall cooperate fully with the other party and its Affiliates in promptly seeking to obtain all such consents, authorizations,
orders and approvals. Notwithstanding the foregoing, nothing in this Section 6.08 shall require, or be construed to require, Buyer
or any of its Affiliates to agree to any material modification or waiver of the terms and conditions of this Agreement. The parties
hereto shall not willfully take any action that will have the effect of delaying, impairing or impeding the receipt of any required
consents, authorizations, orders and approvals.

 

(b)
Seller and Buyer shall use reasonable best efforts to give all notices to, and obtain all consents from, all third parties that
are described in Section 4.03 and Section 5.05 of the Disclosure Schedules, respectively.

 

Section
6.09 Securities Laws.

 

(a)
Medovex shall arrange for and manage all necessary procedures under the requirements of federal and state securities laws and
the rules and regulations promulgated thereunder, and Seller will cooperate with all reasonable requests of Medovex related to
such standards, to the end that the transactions contemplated by this Agreement take full advantage of any appropriate exemptions
from registration, and to otherwise be in accord with all antifraud restrictions set forth in such securities laws.

 

(b)
Seller understands and agrees that the Exchange Shares to be issued pursuant to this Agreement will not be registered under the
Securities Act in reliance on exemptions contained in the Securities Act.

 

(c)
Seller represents and warrants that it is not acquiring the Exchange Shares to be issued pursuant to this Agreement with a view
to distribution, except for distribution to RMS Shareholder in liquidation and to RMS Shareholder’s shareholders as contemplated
and permitted hereby. Seller and RMS Shareholder agree to indemnify Medovex against any liabilities, costs, or expenses, including
counsel fees, that shall arise as a result of a sale or distribution by Seller or RMS Shareholder of the shares of Exchange Shares
in violation of, or that is claimed to be in violation of, the Securities Act.

 

(d)
Seller agrees to deliver to Medovex on the Closing Date a letter in form satisfactory to Medovex, signed by each of the shareholders
of RMS Shareholder:

 

(i)
Certifying to Buyer the names of such shareholders;

 

    	 	53	 

     

    

 

(ii)
Representing and warranting that the Exchange Shares, when distributed to such shareholders, shall be acquired by them for investment
and not with a view to distribution; and

 

(iii)
Indemnifying Buyer and Medovex against all liabilities, costs, or expenses, including counsel fees, arising as a result of any
distribution of any of the Exchange Shares by such shareholders in actual or claimed violation of the Securities Act.

 

(e)
Medovex is authorized to notify its transfer agent of the status of the Exchange Shares issued pursuant to the terms of this Agreement,
and to take such other action as shall be reasonable and proper to prevent any violation of the Securities Act, including, but
not limited to, requiring the share certificates for the Exchange Shares to be endorsed with a legend deemed appropriate by Buyer
and the issuance of stop transfer instructions.

 

(f)
RMS Shareholder’s shareholders shall not transfer any of the Exchange Shares received by them under the provisions of this
Agreement without first having presented to Medovex a written opinion of counsel, in form and substance satisfactory to Medovex,
specifying the nature and circumstances of the proposed transfer and that the proposed transfer shall not be in violation of any
of the provisions of the Securities Act, specifying the applicable exemption.

 

Section
6.10 Books and Records.

 

(a)
In order to facilitate the resolution of any claims made by or against or incurred by Seller, Medovex or Buyer prior to the Closing,
or for any other reasonable purpose, for a period which is the later of (a) the date that the Tampa Litigation is resolved by
final, non-appealable adjudication or settlement, both without liability or the creation of a financial or other obligation on
the part of any Medovex Member or its Affiliates and that provides, in customary form, for the unconditional release of each Medovex
Member and its Affiliates from all liabilities and obligations in connection with such Tampa Litigation (the “Tampa Litigation
Resolution Date”), and (b) two year following the Closing Date, Seller and Buyer shall each:

 

(i)
retain Books and Records (including personnel files) of the Seller Business relating to periods prior to the Closing in accordance
with customary business practices; and

 

(ii)
upon reasonable notice, afford the Seller’s Representatives or Buyer’s Representatives, as the case may be, reasonable
access (including the right to make, at its own expense, photocopies), during normal business hours, to such Books and Records.

 

(b)
Neither Buyer nor Seller shall be obligated to provide the other party with access to any books or records (including personnel
files) pursuant to this Section 6.10 where such access would violate any Law.

 

    	 	54	 

     

    

 

Section
6.11 Medovex Board of Directors. Subject to the fiduciary duties of the Board of Directors of Medovex, Medovex shall take
all necessary corporate action to cause the Board of Directors of Medovex to consist of five directors as of the Closing, and
Medovex shall take all commercially reasonable actions necessary to fill any vacancies on the Medovex Board so that immediately
following the Closing, the Board of Medovex shall consist of:

 

(a)
Two directors previously elected by the shareholders of Medovex;

 

(b)
Two directors chosen by RMS Shareholder; and

 

(c)
William Horne.

 

Section
6.12 Management Employment Agreement. Upon the Closing, subject to the approval of the Medovex Board of Directors appointed
as provided in Section 6.11 above, Medovex shall enter into an employment agreement with James St. Louis in form and substance
satisfactory to both Medovex and Mr. St. Louis (the “Management Employment Agreement”).

 

Section
6.13 Closing Conditions From the date hereof until the Closing, each party hereto shall use commercially reasonable efforts
to take such actions as are necessary to satisfy the closing conditions set forth in ARTICLE VII hereof.

 

Section
6.14 Public Announcements. Unless otherwise required by applicable Law or stock exchange requirements (based upon the reasonable
advice of counsel), no party to this Agreement shall make any public announcements in respect of this Agreement or the transactions
contemplated hereby or otherwise communicate with any news media without the prior written consent of the other party (which consent
shall not be unreasonably withheld or delayed), and the parties shall cooperate as to the timing and contents of any such announcement.

 

Section
6.15 Bulk Sales Laws. The parties hereby waive compliance with the provisions of any bulk sales, bulk transfer or similar
Laws of any jurisdiction that may otherwise be applicable with respect to the sale of any or all of the Purchased Assets to Buyer;
it being understood that any Liabilities arising out of the failure of Seller to comply with the requirements and provisions of
any bulk sales, bulk transfer or similar Laws of any jurisdiction which would not otherwise constitute Assumed Liabilities shall
be treated as Excluded Liabilities.

 

Section
6.16 Receivables. From and after the Closing, if Seller or any of its Affiliates receives or collects any funds relating to
any Accounts Receivable or any other Purchased Asset, Seller or its Affiliate shall remit such funds to Buyer within five Business
Days after its receipt thereof. From and after the Closing, if Buyer or its Affiliate receives or collects any funds relating
to any Excluded Asset, Buyer or its Affiliate shall remit any such funds to Seller within five Business Days after its receipt
thereof.

 

Section
6.17 Transfer Taxes. All transfer, documentary, sales, use, stamp, registration, value added and other such Taxes and fees
(including any penalties and interest) incurred in connection with this Agreement and the Ancillary Documents (including any real
property transfer Tax and any other similar Tax) shall be borne and paid by Seller when due. Seller shall, at its own expense,
timely file any Tax Return or other document with respect to such Taxes or fees (and Buyer shall cooperate with respect thereto
as necessary).

 

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Section
6.18 Tax Clearance Certificates. If requested by Buyer, Seller shall notify all of the taxing authorities in the jurisdictions
that impose Taxes on Seller or where Seller has a duty to file Tax Returns of the transactions contemplated by this Agreement
in the form and manner required by such taxing authorities, if the failure to make such notifications or receive any available
tax clearance certificate (a “Tax Clearance Certificate”) could subject Buyer to any Taxes of Seller. If any
taxing authority asserts that Seller is liable for any Tax, Seller shall promptly pay any and all such amounts and shall provide
evidence to Buyer that such liabilities have been paid in full or otherwise satisfied.

 

Section
6.19 Further Assurances. Following the Closing, each of the parties hereto shall, and shall cause their respective Affiliates
to, execute and deliver such additional documents, instruments, conveyances and assurances and take such further actions as may
be reasonably required to carry out the provisions hereof and give effect to the transactions contemplated by this Agreement and
the Ancillary Documents.

 

Section
6.20 Employee Tax Withholding and Reporting. Buyer and Seller agree to use the standard procedure set forth in Revenue Procedure
2004-53 with respect to wage withholding and reporting.

 

ARTICLE
VII

CONDITIONS
TO CLOSING

 

Section
7.01 Conditions to Obligations of All Parties. The obligations of each party to consummate the transactions contemplated by
this Agreement shall be subject to the fulfillment, at or prior to the Closing, of each of the following conditions:

 

(a)
No Governmental Authority shall have enacted, issued, promulgated, enforced or entered any Governmental Order which is in effect
and has the effect of making the transactions contemplated by this Agreement illegal, otherwise restraining or prohibiting consummation
of such transactions or causing any of the transactions contemplated hereunder to be rescinded following completion thereof.

 

(b)
Seller shall have received all consents, authorizations, orders and approvals from the Governmental Authorities referred to in
Section 4.03 and Buyer shall have received all consents, authorizations, orders and approvals from the Governmental Authorities
referred to in Section 5.05, in each case, in form and substance reasonably satisfactory to Buyer and Seller, as the case may
be, and no such consent, authorization, order or approval shall have been revoked.

 

(c)
No Action shall have been commenced against Buyer, Medovex or Seller, which would prevent the Closing. No injunction or restraining
order shall have been issued by any Governmental Authority, and be in effect, which restrains or prohibits any transaction contemplated
hereby.

 

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Section
7.02 Conditions to Obligations of Buyer. The obligations of Buyer to consummate the transactions contemplated by this Agreement
shall be subject to the fulfillment or Buyer’s waiver, at or prior to the Closing, of each of the following conditions:

 

(a)
Other than the representations and warranties of Seller contained in Section 4.01, Section 4.02, Section 4.03 and Section 4.20,
the representations and warranties of Seller contained in this Agreement, the Ancillary Documents and any certificate or other
writing delivered pursuant hereto shall be true and correct in all respects (in the case of any representation or warranty qualified
by materiality or Material Adverse Effect) or in all material respects (in the case of any representation or warranty not qualified
by materiality or Material Adverse Effect) on and as of the date hereof and on and as of the Closing Date with the same effect
as though made at and as of such date (except those representations and warranties that address matters only as of a specified
date, the accuracy of which shall be determined as of that specified date in all respects). The representations and warranties
of Seller contained in Section 4.01, Section 4.02, Section 4.03 and Section 4.20 shall be true and correct in all respects on
and as of the date hereof and on and as of the Closing Date with the same effect as though made at and as of such date (except
those representations and warranties that address matters only as of a specified date, the accuracy of which shall be determined
as of that specified date in all respects).

 

(b)
Seller shall have duly performed and complied in all material respects with all agreements, covenants and conditions required
by this Agreement and each of the Ancillary Documents to be performed or complied with by it prior to or on the Closing Date;
provided, that, with respect to agreements, covenants and conditions that are qualified by materiality, Seller shall have
performed such agreements, covenants and conditions, as so qualified, in all respects.

 

(c)
All approvals, consents and waivers that are listed on Section 4.03 of the Disclosure Schedules shall have been received, and
executed counterparts thereof shall have been delivered to Buyer at or prior to the Closing.

 

(d)
From the date of this Agreement, there shall not have occurred any Material Adverse Effect with respect to Seller, nor shall any
event or events have occurred that, individually or in the aggregate, with or without the lapse of time, could reasonably be expected
to result in such a Material Adverse Effect.

 

(e)
Prior to the Closing, Buyer shall have received the opinion of Willamette Management Associates to the effect that, as of the
date of this Agreement and based upon and subject to the qualifications and assumptions set forth therein, the Purchase Price
is fair, from a financial point of view, to the holders of shares of the Medovex Common Stock, and, as of the date of this Agreement,
such opinion has not been withdrawn, revoked, or modified.

 

(f)
Prior to the Closing, Seller shall have obtained an appraisal of the Seller Business and the Purchased Assets which shall be prepared
by a reputable appraisal firm utilizing industry standard valuation methodologies.

 

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(g)
Seller shall have delivered to Buyer duly executed counterparts to the Ancillary Documents and such other documents and deliveries
set forth in Section 3.02(a).

 

(h)
Buyer shall have received all Permits that are necessary for it to conduct the Seller Business as conducted by Seller as of the
Closing Date.

 

(i)
All Encumbrances relating to the Purchased Assets shall have been released in full, other than Permitted Encumbrances, and Seller
shall have delivered to Buyer written evidence, in form satisfactory to Buyer in its sole discretion, of the release of such Encumbrances.

 

(j)
Buyer shall have received a certificate, dated the Closing Date and signed by a duly authorized officer of each Seller (the “Seller
Closing Certificate”), certifying that:

 

(i)
each of the conditions set forth in Section 7.02(a) and Section 7.02(b) have been satisfied;

 

(ii)
attached thereto are true and complete copies of all resolutions adopted by the board of directors of each Seller authorizing
the execution, delivery and performance of this Agreement and the Ancillary Documents and the consummation of the transactions
contemplated hereby and thereby, and that all such resolutions are in full force and effect and are all the resolutions adopted
in connection with the transactions contemplated hereby and thereby; and

 

(iii)
the names and signatures of the officers of each Seller authorized to sign this Agreement, the Ancillary Documents and the other
documents to be delivered hereunder and thereunder.

 

(k)
Buyer shall have received a certificate pursuant to Treasury Regulations Section 1.1445-2(b) (the “FIRPTA Certificate”)
that Seller is not a foreign person within the meaning of Section 1445 of the Code duly executed by each Seller.

 

(l)
Seller shall have delivered to Buyer such other documents or instruments as Buyer reasonably requests and are reasonably necessary
to consummate the transactions contemplated by this Agreement.

 

Section
7.03 Conditions to Obligations of Seller. The obligations of Seller to consummate the transactions contemplated by this Agreement
shall be subject to the fulfillment or Seller’s waiver, at or prior to the Closing, of each of the following conditions:

 

(a)
Other than the representations and warranties of Buyer contained in Section 5.01, Section 5.02, Section 5.05, and Section 5.06,
the representations and warranties of Buyer and Medovex contained in this Agreement, the Ancillary Documents and any certificate
or other writing delivered pursuant hereto shall be true and correct in all respects (in the case of any representation or warranty
qualified by materiality or Material Adverse Effect) or in all material respects (in the case of any representation or warranty
not qualified by materiality or Material Adverse Effect) on and as of the date hereof and on and as of the Closing Date with the
same effect as though made at and as of such date (except those representations and warranties that address matters only as of
a specified date, the accuracy of which shall be determined as of that specified date in all respects). The representations and
warranties of Buyer contained in Section 5.01, Section 5.02, Section 5.05, and Section 5.06 shall be true and correct in all respects
on and as of the date hereof and on and as of the Closing Date with the same effect as though made at and as of such date.

 

    	 	58	 

     

    

 

(b)
Buyer shall have duly performed and complied in all material respects with all agreements, covenants and conditions required by
this Agreement and each of the Ancillary Documents to be performed or complied with by it prior to or on the Closing Date; provided,
that, with respect to agreements, covenants and conditions that are qualified by materiality, Buyer shall have performed such
agreements, covenants and conditions, as so qualified, in all respects.

 

(c)
All approvals, consents and waivers that are listed on Section 5.05 of the Disclosure Schedules shall have been received, and
executed counterparts thereof shall have been delivered to Seller at or prior to the Closing.

 

(d)
As of the Closing, Medovex shall have $1,650,000 of cash on its balance sheet (which amount shall include the $350,000 payable
to Seller, and all of which shall be treated as a credit against the $5,000,000 referenced in Section 2.05(f)(iv)), and binding
commitments from Persons satisfactory to RMS to invest cash in Medovex by November 15, 2018, of at least an additional $1,000,000.

 

(e)
As of the last calendar day immediately prior to Closing, Medovex shall have a consolidated balance sheet current ratio of 1:1,
as such term is defined, and such ratio is calculated on Schedule 7.03 attached hereto, determined without including the cash
on hand required of Medovex to satisfy the requirements of Section 7.03(d).

 

(f)
Buyer shall have delivered to Seller duly executed counterparts to the Ancillary Documents and such other documents and deliveries
set forth in Section 3.02(b).

 

(g)
Seller shall have received a certificate, dated the Closing Date and signed by a duly authorized officer of Buyer (the “Buyer
Closing Certificate”), certifying that:

 

(i)
each of the conditions set forth in Section 7.03(a) and Section 7.03(b) have been satisfied.

 

(ii)
attached thereto are true and complete copies of all resolutions adopted by the board of directors of Buyer and Medovex authorizing
the execution, delivery and performance of this Agreement and the Ancillary Documents and the consummation of the transactions
contemplated hereby and thereby, and that all such resolutions are in full force and effect and are all the resolutions adopted
in connection with the transactions contemplated hereby and thereby; and

 

    	 	59	 

     

    

 

(iii)
the names and signatures of the officers of Buyer and Medovex authorized to sign this Agreement, the Ancillary Documents and the
other documents to be delivered hereunder and thereunder.

 

(h)
Medovex shall have reduced the number of its Board of Directors to five members and received the resignations of three board members,
to be effective as of the Closing.

 

(i)
From the date hereof until the Closing, no Medovex Member shall amend or restate any outstanding stock options, warrants, convertible
securities, incentive plans or contracts related thereto.

 

(j)
Seller has approved the terms of the Exchange Shares as set forth in the amended Articles of Incorporation of Medovex.

 

(k)
All corporate action required to be taken by Medovex’s board of directors and shareholders has been taken to authorize and
issue the Exchange Shares at the Closing.

 

(l)
Buyer shall have delivered to Seller such other documents or instruments as Seller reasonably requests and are reasonably necessary
to consummate the transactions contemplated by this Agreement.

 

ARTICLE
VIII

INDEMNIFICATION

 

Section
8.01 Survival. Subject to the limitations and other provisions of this Agreement, the representations and warranties herein
(other than those contained in Sections 4.01, 4.02, 4.03, 4.08, 4.19 and 4.20 (the “Seller Fundamental Reps”)
and Sections 5.01, 5.02, 5.03, 5.04, 5.05 and 5.20 (the “Buyer Fundamental Reps”)) shall survive the Closing
and shall remain in full force and effect until the date that is 18 months from the Closing Date. The Seller Fundamental Reps
and Buyer Fundamental Reps shall survive the Closing and shall remain in full force and effect until the expiration of the applicable
statute of limitations for making a claim thereunder. All covenants and agreements of the parties contained herein shall survive
the Closing indefinitely or for the period explicitly specified therein. The covenants and agreements contained in Section 2.05
and Section 6.04(b) shall survive the Closing until all Additional Exchange Shares are issued and delivered to Seller. Notwithstanding
the foregoing, any claims asserted in good faith with reasonable specificity (to the extent known at such time) and in writing
by notice from the non-breaching party to the breaching party prior to the expiration date of the applicable survival period shall
not thereafter be barred by the expiration of the relevant representation or warranty and such claims shall survive until finally
resolved.

 

    	 	60	 

     

    

 

Section
8.02 Indemnification By Seller. Subject to the other terms and conditions of this ARTICLE VIII, Seller and RMS Shareholder
shall indemnify and defend each of Medovex, Buyer and their Affiliates and Representatives (collectively, the “Buyer
Indemnitees”) against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them
for, any and all Losses incurred or sustained by, or imposed upon, Buyer Indemnitees based upon, arising out of, with respect
to or by reason of:

 

(a)
any inaccuracy in or breach of any of the representations or warranties of Seller or RMS Shareholder contained in this Agreement,
the Ancillary Documents or in any certificate or instrument delivered by or on behalf of Seller or RMS Shareholder pursuant to
this Agreement;

 

(b)
any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Seller or RMS Shareholder pursuant to
this Agreement, the Ancillary Documents or any certificate or instrument delivered by or on behalf of Seller or RMS Shareholder
pursuant to this Agreement;

 

(c)
any Excluded Asset or any Excluded Liability;

 

(d)
any Third Party Claim based upon, resulting from or arising out of the business, operations, properties, assets or obligations
of Seller or any of their Affiliates conducted, existing or arising on or prior to the Closing Date;

 

(e)
any Third Party Claim for commissions, finder’s fees or broker’s fees arising out of the consummation of the transaction
contemplated hereby based on an engagement by Seller; and

 

(f)
the Tampa Litigation.

 

Section
8.03 Indemnification By Buyer. Subject to the other terms and conditions of this ARTICLE VIII, Medovex and Buyer shall indemnify
and defend Seller, RMS Shareholder, and their Affiliates and Representatives (collectively, the “Seller Indemnitees”)
against, and shall hold each of them harmless from and against, and shall pay and reimburse each of them for, any and all Losses
incurred or sustained by, or imposed upon, the Seller Indemnitees based upon, arising out of, with respect to or by reason of:

 

(a)
any inaccuracy in or breach of any of the representations or warranties of Buyer or Medovex contained in this Agreement or in
any certificate or instrument delivered by or on behalf of Medovex or Buyer pursuant to this Agreement;

 

(b)
any breach or non-fulfillment of any covenant, agreement or obligation to be performed by Medovex or Buyer pursuant to this Agreement,
the Ancillary Documents or any certificate or instrument delivered by or on behalf of Buyer or Medovex pursuant to this Agreement
on or prior to the Closing Date or during any period of time that RMS Shareholder or its owners do not control Medovex;

 

(c)
any Assumed Liability; and

 

    	 	61	 

     

    

 

(d)
any Third Party Claim for commissions, finder’s fees or broker’s fees arising out of the consummation of the transaction
contemplated hereby based on an engagement by Medovex or Buyer.

 

Section
8.04 Certain Limitations. The indemnification provided for in Section 8.02 and Section 8.03 shall be subject to the following
limitations:

 

(a)
Seller and RMS Shareholder shall not be liable to Buyer Indemnitees for indemnification under Section 8.02(a) until the aggregate
amount of all Losses in respect of indemnification under Section 8.02(a) exceeds $157,000 (the “Basket”), in
which event Seller and RMS Shareholder shall be required to pay or be liable for all Losses in excess of the Basket. The aggregate
amount of all Losses for which Seller shall be liable pursuant to Section 8.02(a) shall not exceed the Purchase Price.

 

(b)
Buyer and Medovex shall not be liable to the Seller Indemnitees for indemnification under Section 8.03(a) until the aggregate
amount of all Losses in respect of indemnification under Section 8.03(a) exceeds the Basket, in which event Buyer and Medovex
shall be required to pay or be liable for all such Losses in excess of the Basket. The aggregate amount of all Losses for which
Buyer shall be liable pursuant to Section 8.03(a) shall not exceed the Purchase Price.

 

(c)
For purposes of this ARTICLE VIII, any inaccuracy in or breach of any representation or warranty shall be determined without regard
to any materiality, Material Adverse Effect or other similar qualification contained in or otherwise applicable to such representation
or warranty.

 

Section
8.05 Indemnification Procedures. The party making a claim under this ARTICLE VIII is referred to as the “Indemnified
Party”, and the party against whom such claims are asserted under this ARTICLE VIII is referred to as the “Indemnifying
Party”.

 

(a)
Third Party Claims. If any Indemnified Party receives notice of the assertion or commencement of any Action made or brought
by any Person who is not a party to this Agreement (a “Third Party Claim”) against such Indemnified Party with
respect to which the Indemnifying Party is obligated to provide indemnification under this Agreement, the Indemnified Party shall
give the Indemnifying Party reasonably prompt written notice thereof, but in any event not later than 30 calendar days after receipt
of such notice of such Third Party Claim. The failure to give such prompt written notice shall not, however, relieve the Indemnifying
Party of its indemnification obligations, except and only to the extent that the Indemnifying Party forfeits rights or defenses
by reason of such failure. Such notice by the Indemnified Party shall describe the Third Party Claim in reasonable detail, shall
include copies of all material written evidence thereof and shall indicate the estimated amount, if reasonably practicable, of
the Loss that has been or may be sustained by the Indemnified Party. The Indemnifying Party shall have the right to participate
in, or by giving written notice to the Indemnified Party, to assume the defense of any Third Party Claim at the Indemnifying Party’s
expense and by the Indemnifying Party’s own counsel, and the Indemnified Party shall cooperate in good faith in such defense;
provided that no Indemnifying Party shall have the right to defend any Third Party Claim that seeks an injunction or other equitable
relief against the Indemnified Party In the event that the Indemnifying Party assumes the defense of any Third Party Claim, subject
to Section 8.05(b), it shall have the right to take such action as it deems necessary to avoid, dispute, defend, appeal or make
counterclaims pertaining to any such Third Party Claim in the name and on behalf of the Indemnified Party. The Indemnified Party
shall have the right to participate in the defense of any Third Party Claim with counsel selected by it subject to the Indemnifying
Party’s right to control the defense thereof. The fees and disbursements of such counsel shall be at the expense of the
Indemnified Party, provided, that if in the reasonable opinion of counsel to the Indemnified Party, (A) there are legal
defenses available to an Indemnified Party that are different from or additional to those available to the Indemnifying Party;
or (B) there exists a conflict of interest between the Indemnifying Party and the Indemnified Party that cannot be waived, the
Indemnifying Party shall be liable for the reasonable fees and expenses of counsel to the Indemnified Party in each jurisdiction
for which the Indemnified Party determines counsel is required. If the Indemnifying Party elects not to compromise or defend such
Third Party Claim, fails to promptly notify the Indemnified Party in writing of its election to defend as provided in this Agreement,
or fails to diligently prosecute the defense of such Third Party Claim, the Indemnified Party may, subject to Section 8.05(b),
pay, compromise, defend such Third Party Claim and seek indemnification for any and all Losses based upon, arising from or relating
to such Third Party Claim. Seller and Buyer shall cooperate with each other in all reasonable respects in connection with the
defense of any Third Party Claim, including making available (subject to the provisions of Section 6.06) records relating to such
Third Party Claim and furnishing, without expense (other than reimbursement of actual out-of-pocket expenses) to the defending
party, management employees of the non-defending party as may be reasonably necessary for the preparation of the defense of such
Third Party Claim.

 

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(b)
Settlement of Third Party Claims. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not
enter into settlement of any Third Party Claim without the prior written consent of the Indemnified Party, except as provided
in this Section 8.05(b). If a firm offer is made to settle a Third Party Claim without leading to liability or the creation of
a financial or other obligation on the part of the Indemnified Party and provides, in customary form, for the unconditional release
of each Indemnified Party from all liabilities and obligations in connection with such Third Party Claim and the Indemnifying
Party desires to accept and agree to such offer, the Indemnifying Party shall give written notice to that effect to the Indemnified
Party. If the Indemnified Party fails to consent to such firm offer within ten days after its receipt of such notice, the Indemnified
Party may continue to contest or defend such Third Party Claim and in such event, the maximum liability of the Indemnifying Party
as to such Third Party Claim shall not exceed the amount of such settlement offer. If the Indemnified Party fails to consent to
such firm offer and also fails to assume defense of such Third Party Claim, the Indemnifying Party may settle the Third Party
Claim upon the terms set forth in such firm offer to settle such Third Party Claim. If the Indemnified Party has assumed the defense
pursuant to Section 8.05(a), it shall not agree to any settlement without the written consent of the Indemnifying Party (which
consent shall not be unreasonably withheld or delayed).

 

    	 	63	 

     

    

 

(c)
Direct Claims. Any Action by an Indemnified Party on account of a Loss which does not result from a Third Party Claim (a
“Direct Claim”) shall be asserted by the Indemnified Party giving the Indemnifying Party reasonably prompt
written notice thereof, but in any event not later than 30 days after the Indemnified Party becomes aware of such Direct Claim.
The failure to give such prompt written notice shall not, however, relieve the Indemnifying Party of its indemnification obligations,
except and only to the extent that the Indemnifying Party forfeits rights or defenses by reason of such failure. Such notice by
the Indemnified Party shall describe the Direct Claim in reasonable detail, shall include copies of all material written evidence
thereof and shall indicate the estimated amount, if reasonably practicable, of the Loss that has been or may be sustained by the
Indemnified Party. The Indemnifying Party shall have 30 days after its receipt of such notice to respond in writing to such Direct
Claim. The Indemnified Party shall allow the Indemnifying Party and its professional advisors to investigate the matter or circumstance
alleged to give rise to the Direct Claim, and whether and to what extent any amount is payable in respect of the Direct Claim
and the Indemnified Party shall assist the Indemnifying Party’s investigation by giving such information and assistance
(including access to the Indemnified Party’s premises and personnel and the right to examine and copy any accounts, documents
or records) as the Indemnifying Party or any of its professional advisors may reasonably request. If the Indemnifying Party does
not so respond within such 30-day period, the Indemnifying Party shall be deemed to have accepted such claim.

 

Section
8.06 Payments. Once a Loss is agreed to, or deemed to be agreed to, by the Indemnifying Party or finally adjudicated to be
payable pursuant to this ARTICLE VIII, the Indemnifying Party shall satisfy its obligations within ten Business Days of such final,
non-appealable adjudication.

 

Section
8.07 Exclusive Source of Recovery.

 

(a)
Escrow of Exchange Shares. RMS shall distribute the Exchange Shares to RMS Shareholder. Except as otherwise provided in
this Section 8.07(a), the Exchange Shares are required to be held by RMS Shareholder and may not be sold or transferred by RMS
Shareholder. Possession of the Exchange Shares shall be retained by RMS Shareholder for a period of 48 months following the Closing
Date (or such longer period thereafter as the applicable statute of limitations would allow Medovex to be named as a party in
the Tampa Litigation or any similar case based upon the activities of Seller) for purposes of satisfying the indemnification obligations
of Seller and RMS Shareholder pursuant to this Agreement; provided, however, if and only if the Tampa Litigation Resolution
Date occurs prior to the date that is 18 months following the Closing Date, then all of the Exchange Shares which are not then
subject to a claim by a Buyer Indemnitee in excess of that number of shares equal to five percent (5%) of the total Exchange Shares
issued at Closing, may be distributed by RMS Shareholder to its owners free and clear of any further claims under this Article
VIII, and said remaining shares shall continue to be held by RMS Shareholder for purposes hereof. Further, if the Tampa Litigation
Resolution Date occurs on or after 18 months following the Closing Date, then all of the Exchange Shares which are not then subject
to a claim by a Buyer Indemnitee may be distributed by RMS Shareholder to its owners free and clear of any further claims under
this Article VIII. The Exchange Shares shall serve as Buyer’s sole recourse for any indemnification claims made pursuant
to this Article VIII. For purposes of satisfying any such claims, the Exchange Shares shall be valued at a per share value equal
to $0.60 per share. Notwithstanding anything to the contrary contained in this Section 8.07 or elsewhere in this Agreement, RMS
Shareholder may, at any time, contribute up to the excess of (a) the entire balance of the Exchange Shares, less (b) the sum of
(i) the Exchange Shares which are not then subject to an indemnification claim by a Buyer Indemnitee (or the proceeds from their
sale), plus (ii) that number of shares equal to five percent (5%) of the total Exchange Shares issued at Closing, to RMS if and
only if and to the extent such shares, or the net proceeds from their sale, are used to settle or otherwise resolve all or a portion
of the Tampa Litigation. If it is necessary for all or any portion of the Exchange Shares to be sold to fully and finally settle
or otherwise resolve all or a portion of the Tampa Litigation, RMS Shareholder and RMS will use their commercially best efforts
to avoid a block sale of such shares that materially and adversely affects the publicly traded price of the Common Stock. For
purposes of this Section 8.07, the Exchange Shares shall be deemed to reference the shares of Common Stock into which the Exchange
Shares are converted, following such conversion.

 

    	 	64	 

     

    

 

(b)
Issuance of Additional Shares. As the sole recourse of any Seller Indemnitee related to and for the recovery of any Losses
arising out of this Agreement, including the indemnification obligations under this Article VIII, a Seller Indemnitee shall be
entitled to receive additional unregistered shares of Common Stock of Medovex as compensation for such Loss. For purposes of satisfying
any such claims, the Medovex Common Stock shall be valued at a per share value equal to $0.60 per share. A Seller Indemnitee’s
right to receive such additional shares shall be subject to the full compliance with all applicable securities laws related to
such issuance. Notwithstanding anything to the contrary herein, the total number of shares of Common Stock issuable to the Seller
Indemnitees for any and all Losses shall not exceed a number of shares equal to fifteen percent (15%) of the total Exchange Shares
issued to Seller (or the Common Shares into which such Exchange Shares are convertible, once converted); provided, however,
if the Tampa Litigation Resolution Date occurs prior to 18 months following the Closing Date, then the total number of shares
of Common Stock issuable to the Seller Indemnitees for any and all Losses shall not exceed a number of shares equal to the sum
of (i) such number of shares which are then subject to an indemnification claim by a Seller Indemnitee, plus (ii) that number
of shares equal to five percent (5%) of the total Exchange Shares issued at Closing (or the Common Shares into which such Exchange
Shares are convertible, once converted).

 

Section
8.08 Tax Treatment of Indemnification Payments. All indemnification payments made under this Agreement shall be treated by
the parties as an adjustment to the Purchase Price for Tax purposes, unless otherwise required by Law.

 

Section
8.09 Effect of Investigation. The representations, warranties and covenants of the Indemnifying Party, and the Indemnified
Party’s right to indemnification with respect thereto, shall not be affected or deemed waived by reason of any investigation
made by or on behalf of the Indemnified Party (including by any of its Representatives) or by reason of the fact that the Indemnified
Party or any of its Representatives knew or should have known that any such representation or warranty is, was or might be inaccurate
or by reason of the Indemnified Party’s waiver of any condition set forth in Section 7.02 or Section 7.03, as the case may
be.

 

    	 	65	 

     

    

 

Section
8.10 Exclusive Remedies. Subject to Section 6.07, Section 6.09(c), Section 9.02 and Section 10.11, the parties acknowledge
and agree that their sole and exclusive remedy with respect to any and all claims (other than claims arising from fraud, criminal
activity or willful misconduct on the part of a party hereto in connection with the transactions contemplated by this Agreement)
for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating to the
subject matter of this Agreement, shall be pursuant to the indemnification provisions set forth in this ARTICLE VIII. In furtherance
of the foregoing, each party hereby waives, to the fullest extent permitted under Law, any and all rights, claims and causes of
action for any breach of any representation, warranty, covenant, agreement or obligation set forth herein or otherwise relating
to the subject matter of this Agreement it may have against the other parties hereto and their Affiliates and each of their respective
Representatives arising under or based upon any Law, except pursuant to the indemnification provisions set forth in this ARTICLE
VIII. Nothing in this Section 8.10 shall limit any Person’s right to seek and obtain any equitable relief to which any Person
shall be entitled or to seek any remedy on account of any party’s fraudulent, criminal or intentional misconduct.

 

ARTICLE
IX

TERMINATION

 

Section
9.01 Termination. This Agreement may be terminated at any time prior to the Closing:

 

(a)
by the mutual written consent of Seller and Buyer;

 

(b)
by Buyer by written notice to Seller if:

 

(i)
Buyer is not then in material breach of any provision of this Agreement and there has been a breach, inaccuracy in or failure
to perform any representation, warranty, covenant or agreement made by Seller pursuant to this Agreement that would give rise
to the failure of any of the conditions specified in ARTICLE VII and such breach, inaccuracy or failure has not been cured by
Seller within ten days of Seller’s receipt of written notice of such breach from Buyer; or

 

(ii)
any of the conditions set forth in Section 7.01 or Section 7.02 shall not have been, or if it becomes apparent that any of such
conditions will not be, fulfilled by the 90th day following the effective date of this Agreement, unless such failure
shall be due to the failure of Buyer to perform or comply with any of the covenants, agreements or conditions hereof to be performed
or complied with by it prior to the Closing;

 

(c)
by Seller by written notice to Buyer if:

 

    	 	66	 

     

    

 

(i)
Seller is not then in material breach of any provision of this Agreement and there has been a breach, inaccuracy in or failure
to perform any representation, warranty, covenant or agreement made by Buyer pursuant to this Agreement that would give rise to
the failure of any of the conditions specified in ARTICLE VII and such breach, inaccuracy or failure has not been cured by Buyer
within ten days of Buyer’s receipt of written notice of such breach from Seller; or

 

(ii)
any of the conditions set forth in Section 7.01 or Section 7.03 shall not have been, or if it becomes apparent that any of such
conditions will not be, fulfilled by the 90th day following the effective date of this Agreement, unless such failure
shall be due to the failure of Seller to perform or comply with any of the covenants, agreements or conditions hereof to be performed
or complied with by it prior to the Closing; or

 

(d)
by Buyer or Seller in the event that (i) there shall be any Law that makes consummation of the transactions contemplated by this
Agreement illegal or otherwise prohibited or (ii) any Governmental Authority shall have issued a Governmental Order restraining
or enjoining the transactions contemplated by this Agreement, and such Governmental Order shall have become final and non-appealable.

 

Section
9.02 Effect of Termination. In the event of the termination of this Agreement in accordance with this Article, this Agreement
shall forthwith become void and there shall be no liability on the part of any party hereto except:

 

(a)
as set forth in this ARTICLE IX and Section 6.06 and ARTICLE X hereof;

 

(b)
Buyer shall pay to Seller an amount equal to $300,000 if this Agreement is terminated by Seller pursuant to Section 9.01(c)(i)
hereof;

 

(c)
Seller shall pay to Buyer an amount equal to $300,000 if this Agreement is terminated by Buyer pursuant to Section 9.01(b)(i)
hereof; and

 

(d)
that nothing herein shall relieve any party hereto from liability for any willful breach of any provision hereof.

 

ARTICLE
X

MISCELLANEOUS

 

Section
10.01 Expenses. Except as otherwise expressly provided herein, all costs and expenses, including, without limitation, fees
and disbursements of counsel, financial advisors and accountants, incurred in connection with this Agreement and the transactions
contemplated hereby shall be paid by the party incurring such costs and expenses, whether or not the Closing shall have occurred.

 

Section
10.02 Notices. All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing
and shall be deemed to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by
the addressee if sent by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail
of a PDF document (with confirmation of transmission) if sent during normal business hours of the recipient, and on the next Business
Day if sent after normal business hours of the recipient or (d) on the third day after the date mailed, by certified or registered
mail, return receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses
(or at such other address for a party as shall be specified in a notice given in accordance with this Section 10.02):

 

    	 	67	 

     

    

 

If
to Seller or RMS Shareholder:

 

201
E. Kennedy Blvd

Suite
325

Tampa,
Florida 33602

Attn:
Jimmy St. Louis

 

with
a copy to:

 

9115
Galleria Court

Suite
105

Naples,
Fl. 34109

Attn:R.
Grammen

 

If
to Medovex or Buyer:

 

3060
Royal Blvd South, Suite 150

Alpharetta,
GA 30022

Attn:
Jesse Crowne

 

with
a copy to:

 

Womble
Bond Dickinson

Atlantic
Station

271
17th Street, NW

Atlanta,
GA 30363-1017

Attn:
Sharon McBrayer Johnson

 

Section
10.03 Interpretation. For purposes of this Agreement, (a) the words “include,” “includes” and “including”
shall be deemed to be followed by the words “without limitation”; (b) the word “or” is not exclusive;
and (c) the words “herein,” “hereof,” “hereby,” “hereto” and “hereunder”
refer to this Agreement as a whole. Unless the context otherwise requires, references herein: (x) to Articles, Sections, Disclosure
Schedules and Exhibits mean the Articles and Sections of, and Disclosure Schedules and Exhibits attached to, this Agreement; (y)
to an agreement, instrument or other document means such agreement, instrument or other document as amended, supplemented and
modified from time to time to the extent permitted by the provisions thereof and (z) to a statute means such statute as amended
from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Agreement shall
be construed without regard to any presumption or rule requiring construction or interpretation against the party drafting an
instrument or causing any instrument to be drafted. The Disclosure Schedules and Exhibits referred to herein shall be construed
with, and as an integral part of, this Agreement to the same extent as if they were set forth verbatim herein.

 

    	 	68	 

     

    

 

Section
10.04 Headings. The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

Section
10.05 Severability. If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such
invalidity, illegality or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render
unenforceable such term or provision in any other jurisdiction. Except as provided in Section 6.07(d), upon such determination
that any term or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify
this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order
that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible.

 

Section
10.06 Entire Agreement. This Agreement and the Ancillary Documents constitute the sole and entire agreement of the parties
to this Agreement with respect to the subject matter contained herein and therein, and supersede all prior and contemporaneous
understandings and agreements, both written and oral, with respect to such subject matter. In the event of any inconsistency between
the statements in the body of this Agreement and those in the Ancillary Documents, the Exhibits and Disclosure Schedules (other
than an exception expressly set forth as such in the Disclosure Schedules), the statements in the body of this Agreement will
control.

 

Section
10.07 Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and
their respective successors and permitted assigns. Neither party may assign its rights or obligations hereunder without the prior
written consent of the other party, which consent shall not be unreasonably withheld or delayed; provided, however, that
prior to the Closing Date, Buyer may, without the prior written consent of Seller, assign all or any portion of its rights under
this Agreement to one or more of its direct or indirect wholly-owned subsidiaries. No assignment shall relieve the assigning party
of any of its obligations hereunder.

 

Section
10.08 No Third-party Beneficiaries. Except as provided in ARTICLE VIII, this Agreement is for the sole benefit of the parties
hereto and their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer
upon any other Person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of
this Agreement.

 

Section
10.09 Amendment and Modification; Waiver. This Agreement may only be amended, modified or supplemented by an agreement in
writing signed by each party hereto. No waiver by any party of any of the provisions hereof shall be effective unless explicitly
set forth in writing and signed by the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect
of any failure, breach or default not expressly identified by such written waiver, whether of a similar or different character,
and whether occurring before or after that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or
privilege arising from this Agreement shall operate or be construed as a waiver thereof; nor shall any single or partial exercise
of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege.

 

    	 	69	 

     

    

 

Section
10.10 Governing Law; Submission to Jurisdiction; Waiver of Jury Trial.

 

(a)
This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware without giving
effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction).

 

(b)
ANY LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE ANCILLARY DOCUMENTS OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY MAY BE INSTITUTED IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE
OF FLORIDA IN EACH CASE LOCATED IN THE CITY OF TAMPA, AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH
COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH PARTY’S
ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT IN ANY SUCH COURT.
THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION OR ANY PROCEEDING IN
SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT
IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

(c)
EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE ANCILLARY DOCUMENTS IS LIKELY
TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE ANCILLARY DOCUMENTS
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE
OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER
IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS WAIVER
VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS
IN THIS SECTION 10.10(c).

 

    	 	70	 

     

    

 

Section
10.11 Specific Performance. The parties agree that irreparable damage would occur if any provision of this Agreement were
not performed in accordance with the terms hereof and that the parties shall be entitled to specific performance of the terms
hereof, in addition to any other remedy to which they are entitled at law or in equity.

 

Section
10.12 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of
which together shall be deemed to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail
or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy
of this Agreement.

 

[SIGNATURE
PAGE FOLLOWS]

 

    	 	71	 

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective
officers thereunto duly authorized.

 

	 	Regenerative
    Medicine Solutions, LLC
	 	 	 
	 	By:
    	/s/
    James St. Louis
	 	Name: 
    	James
    St. Louis
	 	Title:
    	Chief
    Executive Officer
	 	 	 
	 	RMS
    Shareholder, LLC
	 	 	 
	 	By:
    	/s/
    James St. Louis
	 	Name:
    	James
    St. Louis
	 	Title:
    	Chief
    Executive Officer
	 	 	 
	 	Lung
    Institute LLC
	 	 	 
	 	By:
    	/s/
    James St. Louis
	 	Name:
    	James
    St. Louis
	 	Title:
    	Chief
    Executive Officer
	 	 	 
	 	RMS
    Lung Institute Management LLC
	 	 	 
	 	By:
    	/s/
    James St. Louis
	 	Name:
    	James
    St. Louis
	 	Title:
    	Chief
    Executive Officer
	 	 	 
	 	Cognitive
    Health Institute Tampa, LLC
	 	 	 
	 	By:
    	/s/
    James St. Louis
	 	Name:
    	James
    St. Louis
	 	Title:
    	Chief
    Executive Officer
	 	 	 
	 	Medovex
    Corp.
	 	 	 
	 	By:
    	/s/
    Jesse W. Crowne
	 	Name: 
    	Jesse W. Crowne
	 	Title:
    	Executive
    Co-Chairman of the Board
	 	 	 
	 	RMS
    Acquisition Corp.
	 	 	 
	 	By:
    	/s/
    Jesse W. Crowne
	 	Name:
    	Jesse
    W. Crowne
	 	Title:
    	Executive
    Co-Chairman of the Board

 

    	 	72Microsoft Word - Consolidated comments EQUITY FINANCING AGREEMENT APPLIFE.doc

EQUITY FINANCING AGREEMENT

 

This EQUITY FINANCING AGREEMENT (the “Agreement”), dated as of April 4, 2018 (the “Execution Date”), is entered into by and between Applife Digital Solutions, Inc., a Nevada corporation with its principal executive office at 338 N. Market St., #161, San Jose, CA 95110 (the “Company”),and GHS Investments LLC, a Nevada limited liability company, with offices at 420 Jericho Turnpike, Suite 207, Jericho, NY 11753. (the “Investor”).

March __,

April 4th

 

RECITALS:

 

WHEREAS, the parties desire that, upon the terms and subject to the conditions contained herein, the Investor shall invest up to Five Million Dollars ($5,000,000) (the "Commitment Amount"), through the purchase of shares of the Company’s common stock, par value $0.001 per share (the “Common Stock”) from time to time over the course of twenty-four (24) months following an effective registration of the underlying shares (the “Contract Period”);

 

WHEREAS, such investments will be made in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the “1933 Act”), Rule 506 of Regulation D promulgated by the SEC under the 1933 Act, and/or upon such other exemption from the registration requirements of the 1933 Act as may be available with respect to any or all of the investments in Common Stock to be made hereunder; and

 

WHEREAS, contemporaneously with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration Rights Agreement substantially in the form attached hereto as Exhibit A (the “Registration Rights Agreement”) pursuant to which the Company has agreed to provide certain registration rights under the 1933 Act, and the rules and regulations promulgated thereunder, and applicable state securities laws.

 

NOW THEREFORE, in consideration of the foregoing recitals, which shall be considered an integral part of this Agreement, the covenants and agreements set forth hereafter, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and the Investor hereby agree as follows:

 

SECTION I. DEFINITIONS

 

For all purposes of and under this Agreement, the following terms shall have the respective meanings below, and such meanings shall be equally applicable to the singular and plural forms of such defined terms.

 

“1933 Act” shall have the meaning set forth in the recitals.

 

“1934 Act” shall mean the Securities Exchange Act of 1934, as amended, or any similar federal statute, and the rules and regulations of the SEC thereunder, all as the same will then be in effect.

 

“Affiliate” shall have the meaning set forth in Section 5.7.

 

“Agreement” shall have the meaning set forth in the preamble.

 

“Articles of Incorporation” shall have the meaning set forth in Section 4.3.

1

 

“By-laws” shall have the meaning set forth in Section 4.3.

 

“Closing” shall have the meaning set forth in Section 2.4.

 

“Commitment Note” shall have the meaning set forth in Section 2.7.

 

“Closing Date” shall have the meaning set forth in Section 2.4.

 

“Common Stock” shall have the meaning set forth in the recitals. “Control” or “Controls” shall have the meaning set forth in Section 5.7.

“Effective Date” shall mean the date the SEC declares effective under the 1933 Act the Registration Statement covering the Securities.

 

“Environmental Laws” shall have the meaning set forth in Section 4.13.

 

“Execution Date” shall have the meaning set forth in the preamble. “Indemnified Liabilities” shall have the meaning set forth in Section 10.

“Indemnitees” shall have the meaning set forth in Section 10.

 

“Indemnitor” shall have the meaning set forth in Section 10.

 

“Ineffective Period” shall mean any period of time that the Registration Statement or any supplemental registration statement becomes ineffective or unavailable for use for the sale or resale, as applicable, of any or all of the Registrable Securities (as defined in the Registration Rights Agreement) for any reason (or in the event the prospectus under either of the above is not current and deliverable) during any time period required under the Registration Rights Agreement.

 

“Investor” shall have the meaning set forth in the preamble.

 

“Market Price” shall mean the lowest traded price of the Company's Common Stock during the Pricing Period.

 

“Material Adverse Effect” shall have the meaning set forth in Section 4.1.

 

“Maximum Common Stock Issuance” shall have the meaning set forth in Section 2.5.

 

“Open Period” shall mean the period beginning on and including the Trading Day immediately following the Effective Date and ending on the earlier to occur of (i) the date which is twenty four

(24) months from the Effective Date; or (ii) termination of the Agreement in accordance with Section 8.

 

“Pricing Period” shall mean ten (10) consecutive trading days preceding the receipt of the applicable Put Notice.

2

“Principal Market” shall mean the New York Stock Exchange, the NYSE Amex, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market or the OTC Markets, whichever is the principal market on which the Common Stock is listed.

 

“Prospectus” shall mean the prospectus, preliminary prospectus and supplemental prospectus used in connection with the Registration Statement.

 

“Purchase Amount” shall mean the total amount being paid by the Investor on a particular Closing Date to purchase the Securities.

 

“Purchase Price” shall mean eighty percent (80%) of the Market Price.

 

“Put” shall mean the Company is entitled to request equity investments (the “Put” or “Puts”) by the Investor during the Contract Period, pursuant to which the Company will issue Common Stock to the Investor with an aggregate Purchase Price equal to the value of the Put, subject to a price per share calculation based on the Market Price.

 

“Put Amount” shall mean the total dollar amount requested by the Company pursuant to an applicable Put. The timing and amounts of each Put shall be at the discretion of the Company. The maximum dollar amount of each Put will not exceed two hundred percent (200%) of the average daily trading dollar volume for the Company’s Common Stock during the ten (10) trading days preceding the Put Date. No Put will be made in an amount greater than three hundred thousand dollars ($300,000). Puts are further limited to the Investor owning no more than 9.99% of the outstanding stock of the Company at any given time.

 

“Put Notice” shall mean a written notice sent to the Investor by the Company stating the Put Amount in U.S. dollars that the Company intends to sell to the Investor pursuant to the terms of the Agreement and stating the current number of Shares issued and outstanding on such date.

 

“Put Notice Date” shall mean the Trading Day, as set forth below, on which the Investor receives a Put Notice.

 

 

“Put Restriction” shall mean a minimum of ten (10) days following a Put Notice Date. During this time, the Company shall not be entitled to deliver another Put Notice.

 

“Put Shares Due” shall have the meaning set forth in Section 2.4.

 

“Registered Offering Transaction Documents” shall mean this Agreement, the Commitment Note and the Registration Rights Agreement between the Company and the Investor as of the date herewith.

 

“Registration Rights Agreement” shall have the meaning set forth in the recitals.

 

“Registration Statement” means the registration statement of the Company filed under the 1933 Act covering the Securities issuable hereunder.

 

“Related Party” shall have the meaning set forth in Section 5.7.

 

“Resolution” shall have the meaning set forth in Section 7.5.

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“SEC” shall mean the U.S. Securities and Exchange Commission. “SEC Documents” shall have the meaning set forth in Section 4.6.

“Securities” shall mean the shares of Common Stock issued pursuant to the terms of this Agreement.

 

“Settlement Date” shall have the meaning set forth in Section 6.2.

 

“Shares” shall mean the shares of the Company’s Common Stock. “Subsidiaries” shall have the meaning set forth in Section 4.1.

“Trading Day” shall mean any day on which the Principal Market for the Common Stock is open for trading, from the hours of 9:30 am until 4:00 pm.

 

“Transaction Documents” shall mean this Agreement, the Commitment Note, the Registration Rights Agreement and supporting documents between the Company and the Investor as of the date hereof.

 

“Waiting Period” shall have the meaning set forth in Section 2.2.

 

SECTION II

PURCHASE AND SALE OF COMMON STOCK

 

2.1PURCHASE AND SALE OF COMMON STOCK. Subject to the terms and conditions set forth herein, the Company shall issue and sell to the Investor, and the Investor shall purchase from the Company, up to that number of Shares having an aggregate Purchase Price of Five Million Dollars ($5,000,000). 

 

2.2DELIVERY OF PUT NOTICES. Subject to the terms and conditions herein, and from time to time during the Open Period, the Company may, in its sole discretion, deliver a Put Notice to the Investor, which states the dollar amount (designated in U.S. Dollars), which the Company intends to sell to the Investor on a Closing Date (the “Put”). The Put Notice shall be in the form attached hereto as Exhibit C and incorporated herein by reference. The price of the Put shall be eighty (80%) percent of the “Market Price”, which is the lowest traded price of the Company’s Common Stock for ten (10) consecutive trading days preceding the Put Date. During the Open Period, the Company shall not be entitled to submit a Put Notice until after the previous Closing has been completed. There will be a minimum of ten (10) trading days between Put Notices. 

 

2.3CONDITIONS TO INVESTOR’S OBLIGATION TO PURCHASE SHARES. Notwithstanding anything to the contrary in this Agreement, the Company shall not be entitled to deliver a Put Notice and the Investor shall not be obligated to purchase any Shares at a Closing unless each of the following conditions are satisfied: 

 

i.a Registration Statement shall have been declared effective and shall remain effective and available for the resale of all the Registrable Securities (as defined in the Registration Rights Agreement) at all times until the Closing with respect to the subject Put Notice; 

 

ii.at all times during the period beginning on the related Put Notice Date and ending on and including the related Closing Date, the Common Stock shall have been listed or quoted 

4

for trading on the Principal Market and shall not have been suspended from trading thereon for a period of two (2) consecutive Trading Days during the Open Period and the Company shall not have been notified of any pending or threatened proceeding or other action to suspend the trading of the Common Stock;

 

iii.the Company has complied with its obligations and is otherwise not in breach of or in default under, this Agreement, the Registration Rights Agreement or any other agreement executed between the parties, which has not been cured prior to delivery of the Investor’s Put Notice Date; 

 

iv.no injunction shall have been issued and remain in force, or action commenced by a governmental authority which has not been stayed or abandoned, prohibiting the purchase or the issuance of the Securities; and 

 

v.the issuance of the Securities will not violate any shareholder approval requirements of the Principal Market. 

 

If any of the events described in clauses (i) through (v) above occurs during a Pricing Period, then the Investor shall have no obligation to purchase the Put Amount of Common Stock set forth in the applicable Put Notice.

 

2.4MECHANICS OF PURCHASE OF SHARES BY INVESTOR. Subject to the satisfaction of the conditions set forth in Sections 2.5, 7 and 8 of this Agreement, at the end of the Pricing Period, the Purchase Price shall be established and the number of Put Shares shall be delivered for a particular Put. In the event that (i) the lowest volume-weighted average price (the “VWAP”) of the Company’s Common Stock for any given trading day during the ten (10) trading days following a Put Notice (the “Trading Period”) is less than 80% of the Market Price used to determine the Purchase Price in connection with the Put and (ii) as of the end of such Trading Period, the Investor holds Shares issued pursuant to such Put Notice (the “Trading Period Shares”), then the Company shall issue such additional Shares, on the Trading Day immediately following the Trading Period, as may be necessary to adjust the Purchase Price for that portion of the Put represented by the Trading Period Shares to equal the lowest VWAP during the Trading Period. 

 

The Closing of a Put shall occur upon the first Trading Day following the receipt and approval by Investor's broker of the Put Shares, whereby the Company shall have caused the Transfer Agent to electronically transmit, prior to the applicable Closing Date, the applicable Put Shares by crediting the account of the Investor's broker with DTC through its Deposit Withdrawal Agent Commission ("DWAC") system. The Investor shall deliver the Investment Amount specified in the Put Notice by wire transfer of immediately available funds to an account designated by the Company within twenty four (24) business hours of receipt and approval by the Investor’s Broker ("Closing Date" or "Closing"). In addition, on or prior to such Closing Date, each of the Company and Investor shall deliver to each other all documents, instruments and writings required to be delivered or reasonably requested by either of them pursuant to this Agreement in order to implement and effect the transactions contemplated herein.

 

2.5OVERALL LIMIT ON COMMON STOCK ISSUABLE. Notwithstanding anything contained herein to the contrary, if during the Open Period the Company becomes listed on an exchange which limits the number of shares of Common Stock that may be issued without shareholder approval, then the number of Shares issuable by the Company and purchasable by the Investor, shall not exceed that number of the shares of Common Stock that may be issuable without shareholder approval (the “Maximum Common Stock Issuance”). If such issuance of shares of Common Stock could cause a delisting on the Principal Market, then the Maximum Common Stock Issuance shall first be approved by 

5

the Company’s shareholders in accordance with applicable law and the By-laws and the Articles of Incorporation of the Company, if such issuance of shares of Common Stock could cause a delisting on the Principal Market. The parties understand and agree that the Company’s failure to seek or obtain such shareholder approval shall in no way adversely affect the validity and due authorization of the issuance and sale of Securities or the Investor’s obligation in accordance with the terms and conditions hereof to purchase a number of Shares in the aggregate up to the Maximum Common Stock Issuance, and that such approval pertains only to the applicability of the Maximum Common Stock Issuance limitation provided in this Section 2.5.

 

2.6LIMITATION ON AMOUNT OF OWNERSHIP. Notwithstanding anything to the contrary in this Agreement, in no event shall the Investor be entitled to purchase that number of Shares, which when added to the sum of the number of shares of Common Stock beneficially owned (as such term is defined under Section 13(d) and Rule 13d-3 of the 1934 Act), by the Investor, would exceed 9.99% of the number of shares of Common Stock outstanding on the Closing Date, as determined in accordance with Rule 13d-1(j) of the 1934 Act. 

 

2.7COMMITMENT NOTE. Upon the execution of the Transaction Documents, the Company shall issue to the Investor a $67,500 Promissory Note, maturing nine (9) months from execution, as a Commitment Note ("Commitment Note"). The Commitment Note shall be deemed earned upon the execution of this Agreement. 

 

 

 

SECTION III

 

INVESTOR’S REPRESENTATIONS, WARRANTIES AND COVENANTS

 

The Investor represents and warrants to the Company, and covenants, that to the best of the Investor's knowledge:

 

3.1SOPHISTICATED INVESTOR. The Investor has, by reason of its business and financial experience, such knowledge, sophistication and experience in financial and business matters and in making investment decisions of this type that it is capable of (I) evaluating the merits and risks of an investment in the Securities and making an informed investment decision; (II) protecting its own interest; and (III) bearing the economic risk of such investment for an indefinite period of time. 

 

3.2AUTHORIZATION; ENFORCEMENT. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Investor and is a valid and binding agreement of the Investor enforceable against the Investor in accordance with its terms, subject as to enforceability to general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. 

 

3.3SECTION 9 OF THE 1934 ACT. During the term of this Agreement, the Investor will comply with the provisions of Section 9 of the 1934 Act, and the rules promulgated thereunder, with respect to transactions involving the Common Stock. 

 

3.4ACCREDITED INVESTOR. Investor is an “Accredited Investor” as that term is defined in Rule 501(a) of Regulation D of the 1933 Act. 

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3.5NO CONFLICTS. The execution, delivery and performance of the Documents by the Investor and the consummation by the Investor of the transactions contemplated hereby and thereby will not result in a violation of Partnership Agreement or other organizational documents of the Investor. 

 

3.6OPPORTUNITY TO DISCUSS. The Investor has received all materials relating to the Company’s business, finance and operations, which it has requested. The Investor has had an opportunity to discuss the business, management and financial affairs of the Company with the Company’s management. 

 

3.7INVESTMENT PURPOSES. The Investor is purchasing the Securities for its own account for investment purposes and not with a view towards distribution and agrees to resell or otherwise dispose of the Securities solely in accordance with the registration provisions of the 1933 Act (or pursuant to an exemption from such registration provisions). 

 

3.8NO REGISTRATION AS A DEALER. The Investor is not required to be registered as a “dealer” under the 1934 Act, either as a result of its execution and performance of its obligations under this Agreement or otherwise. 

 

3.9GOOD STANDING. The Investor is a limited liability company, duly organized, validly existing and in good standing in the State of its Nevada. 

 

3.10TAX LIABILITIES. The Investor understands that it is liable for its own tax liabilities. 

 

3.11REGULATION M. The Investor will comply with Regulation M under the 1934 Act, if applicable. 

 

3.12NO SHORT SALES. No short sales shall be permitted by the Investor or its affiliates during the period commencing on the Execution Date and continuing through the termination of this Agreement. 

 

SECTION IV

REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

Except as set forth in the Schedules attached hereto, or as disclosed on the Company’s SEC Documents, the Company represents and warrants to the Investor that:

 

4.1ORGANIZATION AND QUALIFICATION. The Company is a corporation duly organized and validly existing in good standing under the laws of the State of Nevada and has the requisite corporate power and authorization to own its properties and to carry on its business as now being conducted. Both the Company and the companies it owns or controls (“Subsidiaries”) are duly qualified to do business and are in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect” means a change, event, circumstance, effect or state of facts that has had or is reasonably likely to have, a material adverse effect on the business, properties, assets, operations, results of operations, financial condition or prospects of the Company and its Subsidiaries, if any, taken as a whole, or on the transactions contemplated hereby or by the agreements and instruments to be entered into in connection herewith, or on the authority or ability of the Company to perform its obligations under the Registered offering Transaction Documents. 

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4.2AUTHORIZATION; ENFORCEMENT; COMPLIANCE WITH OTHER INSTRUMENTS. 

 

i.The Company has the requisite corporate power and authority to enter into and perform this Investment Agreement and the Registration Rights Agreement (collectively, the “Registered Offering Transaction Documents”), and to issue the Securities in accordance with the terms hereof and thereof. 

 

ii.The execution and delivery of the Registered Offering Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby, including without limitation the issuance of the Securities pursuant to this Agreement, have been duly and validly authorized by the Company’s Board of Directors and no further consent or authorization is required by the Company, its Board of Directors, or its shareholders. 

 

iii.The Registered Offering Transaction Documents have been duly and validly executed and delivered by the Company. 

 

iv.The Registered Offering Transaction Documents constitute the valid and binding obligations of the Company enforceable against the Company in accordance with their terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of creditors’ rights and remedies. 

 

4.3CAPITALIZATION. As of the date hereof, the authorized capital stock of the Company consists of 510,000,000 shares of the Common Stock, par value $0.001 per share, of which as of the date hereof ares are issued and outstanding. All of such outstanding shares have been, or upon issuance will be, validly issued and are fully paid and nonassessable. 

_________sh

0

 

Except as disclosed in the Company’s publicly available filings with the SEC or as otherwise set forth on Schedule 4.3:

 

i.no shares of the Company’s capital stock are subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company; 

 

ii.there are no outstanding debt securities; 

 

iii.there are no outstanding shares of capital stock, options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries; 

 

iv.there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act (except the Registration Rights Agreement); 

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v.there are no outstanding securities of the Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries; 

 

vi.there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities as described in this Agreement; 

 

vii.the Company does not have any stock appreciation rights or “phantom stock” plans or agreements or any similar plan or agreement; and 

 

viii.there is no dispute as to the classification of any shares of the Company’s capital stock. 

 

The Company has furnished to the Investor, or the Investor has had access through EDGAR to, true and correct copies of the Company’s Articles of Incorporation, as in effect on the date hereof (the “Articles of Incorporation”), and the Company’s By-laws, as in effect on the date hereof (the “By-laws”), and the terms of all securities convertible into or exercisable for Common Stock and the material rights of the holders thereof in respect thereto.

 

4.4ISSUANCE OF SHARES. The Company has reserved the amount of Shares included in the Company’s registration statement for issuance pursuant to the Registered Offering Transaction Documents, which have been duly authorized and reserved (subject to adjustment pursuant to the Company’s covenant set forth in Section 5.5 below) pursuant to this Agreement. Upon issuance in accordance with this Agreement, the Securities will be validly issued, fully paid for and non-assessable and free from all taxes, liens and charges with respect to the issuance thereof. In the event the Company cannot register a sufficient number of Shares for issuance pursuant to this Agreement, the Company will use its best efforts to authorize and reserve for issuance the number of Shares required for the Company to perform its obligations hereunder as soon as reasonably practicable. 

 

4.5NO CONFLICTS. The execution, delivery and performance of the Registered Offering Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby will not (i) result in a violation of the Articles of Incorporation, any Certificate of Designations, Preferences and Rights of any outstanding series of preferred stock of the Company or the By-laws; or (ii) conflict with, or constitute a material default (or an event which with notice or lapse of time or both would become a material default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any material agreement, contract, indenture mortgage, indebtedness or instrument to which the Company or any of its Subsidiaries is a party, or to the Company’s knowledge result in a violation of any law, rule, regulation, order, judgment or decree (including United States federal and state securities laws and regulations and the rules and regulations of the Principal Market or principal securities exchange or trading market on which the Common Stock is traded or listed) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected. Neither the Company nor its Subsidiaries is in violation of any term of, or in default under, the Articles of Incorporation, any Certificate of Designations, Preferences and Rights of any outstanding series of preferred stock of the Company or the By-laws or their organizational charter or by-laws, respectively, or any contract, agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or order or any statute, rule or regulation applicable to the Company or its Subsidiaries, except for possible conflicts, defaults, terminations, amendments, accelerations, cancellations and violations that would not individually or in the aggregate have or constitute a Material Adverse Effect. The business of the Company and its Subsidiaries is not being conducted, and shall not be conducted, in violation of any law, statute, ordinance, rule, order or regulation 

9

of any governmental authority or agency, regulatory or self-regulatory agency, or court, except for possible violations the sanctions for which either individually or in the aggregate would not have a Material Adverse Effect. Except as specifically contemplated by this Agreement and as required under the 1933 Act or any securities laws of any states, to the Company’s knowledge, the Company is not required to obtain any consent, authorization, permit or order of, or make any filing or registration (except the filing of a registration statement as outlined in the Registration Rights Agreement between the parties) with, any court, governmental authority or agency, regulatory or self-regulatory agency or other third party in order for it to execute, deliver or perform any of its obligations under, or contemplated by, the Registered Offering Transaction Documents in accordance with the terms hereof or thereof. All consents, authorizations, permits, orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the date hereof and are in full force and effect as of the date hereof. The Company and its Subsidiaries are unaware of any facts or circumstances, which might give rise to any of the foregoing. The Company is not, and will not be, in violation of the listing requirements of the Principal Market as in effect on the date hereof and on each of the Closing Dates and is not aware of any facts which would reasonably lead to delisting of the Common Stock by the Principal Market in the foreseeable future.

 

4.6 SEC DOCUMENTS; FINANCIAL STATEMENTS. As of the date hereof, the Company has filed all reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial statements and schedules thereto and documents incorporated by reference therein, and amendments thereto, being hereinafter referred to as the “SEC Documents”). The Company has delivered to the Investor or its representatives, or they have had access through EDGAR to, true and complete copies of the SEC Documents. As of their respective filing dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC or the time they were amended, if amended, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. As of their respective dates, the financial statements of the Company included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles, by a firm that is a member of the Public Companies Accounting Oversight Board (“PCAOB”) consistently applied, during the periods involved (except (i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of the Company as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). No other written information provided by or on behalf of the Company to the Investor which is not included in the SEC Documents, including, without limitation, information referred to in Section 4.3 of this Agreement, contains any untrue statement of a material fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstance under which they are or were made, not misleading. Neither the Company nor any of its Subsidiaries or any of their officers, directors, employees or agents have provided the Investor with any material, nonpublic information which was not publicly disclosed prior to the date hereof and any material, nonpublic information provided to the Investor by the Company or its Subsidiaries or any of their officers, directors, employees or agents prior to any Closing Date shall be publicly disclosed by the Company prior to such Closing Date. 

 

4.7ABSENCE OF CERTAIN CHANGES. Except as otherwise set forth in the SEC Documents, the Company does not intend to change the business operations of the Company in any 

10

material way. The Company has not taken any steps, and does not currently expect to take any steps, to seek protection pursuant to any bankruptcy law nor does the Company or its Subsidiaries have any knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy proceedings.

 

4.8ABSENCE OF LITIGATION AND/OR REGULATORY PROCEEDINGS. Except as set forth in the SEC Documents, there is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of Company or any of its Subsidiaries, threatened against or affecting the Company, the Common Stock or any of the Company’s Subsidiaries or any of the Company’s or the Company’s Subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a Material Adverse Effect. 

 

4.9ACKNOWLEDGMENT REGARDING INVESTOR’S PURCHASE OF SHARES. The Company acknowledges and agrees that the Investor is acting solely in the capacity of an arm’s length Investor with respect to the Registered Offering Transaction Documents and the transactions contemplated hereby and thereby. The Company further acknowledges that the Investor is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Registered Offering Transaction Documents and the transactions contemplated hereby and thereby and any advice given by the Investor or any of its respective representatives or agents in connection with the Registered Offering Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to the Investor’s purchase of the Securities, and is not being relied on by the Company. The Company further represents to the Investor that the Company’s decision to enter into the Registered Offering Transaction Documents has been based solely on the independent evaluation by the Company and its representatives. 

 

4.10NO UNDISCLOSED EVENTS, LIABILITIES, DEVELOPMENTS OR CIRCUMSTANCES. Except as set forth in the SEC Documents, as of the date hereof, no event, liability, development or circumstance has occurred or exists, or to the Company’s knowledge is contemplated to occur, with respect to the Company or its Subsidiaries or their respective business, properties, assets, prospects, operations or financial condition, that would be required to be disclosed by the Company under applicable securities laws on a registration statement filed with the SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly announced. 

 

4.11EMPLOYEE RELATIONS. Neither the Company nor any of its Subsidiaries is involved in any union labor dispute nor, to the knowledge of the Company or any of its Subsidiaries, is any such dispute threatened. Neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that relations with their employees are good. No executive officer (as defined in Rule 501(f) of the 1933 Act) has notified the Company that such officer intends to leave the Company’s employ or otherwise terminate such officer’s employment with the Company. 

 

4.12INTELLECTUAL PROPERTY RIGHTS. The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals, governmental authorizations, trade secrets and rights necessary to conduct their respective businesses as now conducted. Except as set forth in the SEC Documents, none of the Company’s trademarks, trade names, service marks, service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals, government authorizations, trade secrets or other intellectual property rights necessary to conduct its business as now or as proposed to be conducted have expired or terminated, or are expected to expire or terminate within two (2) years from the date of this Agreement. 

11

The Company and its Subsidiaries do not have any knowledge of any infringement by the Company or its Subsidiaries of trademark, trade name rights, patents, patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations, trade secret or other similar rights of others, or of any such development of similar or identical trade secrets or technical information by others and, except as set forth in the SEC Documents, there is no claim, action or proceeding being made or brought against, or to the Company’s knowledge, being threatened against, the Company or its Subsidiaries regarding trademark, trade name, patents, patent rights, invention, copyright, license, service names, service marks, service mark registrations, trade secret or other infringement; and the Company and its Subsidiaries are unaware of any facts or circumstances which might give rise to any of the foregoing. The Company and its Subsidiaries have taken commercially reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties.

 

4.13TITLE. The Company and its Subsidiaries have good and marketable title to all personal property owned by them which is material to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects except such as are described in the SEC Documents or such as do not materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by the Company or any of its Subsidiaries. Any real property and facilities held under lease by the Company or any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company and its Subsidiaries. 

 

4.14INSURANCE. Each of the Company’s Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as management of the Company reasonably believes to be prudent and customary in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company nor any of its Subsidiaries has been refused any insurance coverage sought or applied for and neither the Company nor its Subsidiaries has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect. 

 

4.15REGULATORY PERMITS. The Company and its Subsidiaries have in full force and effect all certificates, approvals, authorizations and permits from the appropriate federal, state, local or foreign regulatory authorities and comparable foreign regulatory agencies, necessary to own, lease or operate their respective properties and assets and conduct their respective businesses, and neither the Company nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, approval, authorization or permit, except for such certificates, approvals, authorizations or permits which if not obtained, or such revocations or modifications which, would not have a Material Adverse Effect. 

 

4.16INTERNAL ACCOUNTING CONTROLS. Except as otherwise set forth in the SEC Documents, the Company and each of its Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles by a firm with membership to the PCAOB and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. The Company’s management has determined that the 

12

Company’s internal accounting controls were not effective as of the date of this Agreement as further described in the SEC Documents.

 

4.17NO MATERIALLY ADVERSE CONTRACTS, ETC. Neither the Company nor any of its Subsidiaries is subject to any charter, corporate or other legal restriction, or any judgment, decree, order, rule or regulation which in the judgment of the Company’s officers has or is expected in the future to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is a party to any contract or agreement, which in the judgment of the Company’s officers has or is expected to have a Material Adverse Effect. 

 

4.18TAX STATUS. The Company and each of its Subsidiaries has made or filed all United States federal and state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject (unless and only to the extent that the Company and each of its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all unpaid and unreported taxes) and has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and has set aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim. 

 

4.19CERTAIN TRANSACTIONS. Except as set forth in the SEC Documents filed at least ten (10) days prior to the date hereof and except for arm’s length transactions pursuant to which the Company makes payments in the ordinary course of business upon terms no less favorable than the Company could obtain from disinterested third parties , none of the officers, directors, or employees of the Company is presently a party to any transaction with the Company or any of its Subsidiaries (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any corporation, partnership, trust or other entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, such that disclosure would be required in the SEC Documents.. 

 

4.20DILUTIVE EFFECT. The Company understands and acknowledges that the number of shares of Common Stock issuable upon purchases pursuant to this Agreement will increase in certain circumstances including, but not necessarily limited to, the circumstance wherein the trading price of the Common Stock declines during the period between the Effective Date and the end of the Open Period. The Company’s executive officers and directors have studied and fully understand the nature of the transactions contemplated by this Agreement and recognize that they have a potential dilutive effect on the shareholders of the Company. The Board of Directors of the Company has concluded, in its good faith business judgment, and with full understanding of the implications, that such issuance is in the best interests of the Company. The Company specifically acknowledges that, subject to such limitations as are expressly set forth in the Registered Offering Transaction Documents, its obligation to issue shares of Common Stock upon purchases pursuant to this Agreement is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other shareholders of the Company. 

 

4.21NO GENERAL SOLICITATION. Neither the Company, nor any of its affiliates, nor any person acting on its behalf, has engaged in any form of general solicitation or general advertising (within 

13

the meaning of Regulation D) in connection with the offer or sale of the Common Stock to be offered as set forth in this Agreement.

 

4.22NO BROKERS, FINDERS OR FINANCIAL ADVISORY FEES OR COMMISSIONS. No brokers, finders or financial advisory fees or commissions will be payable by the Company, its agents or Subsidiaries, with respect to the transactions contemplated by this Agreement. 

 

4.23EXCLUSIVITY. The Company shall not pursue a similar Equity Financing transaction with any other party unless and until good faith negotiations have terminated between the Investor and the Company or until such time as the registration statement has been declared effective by the SEC. 

 

SECTION V COVENANTS OF THE COMPANY

 

5.1BEST EFFORTS. The Company shall use all commercially reasonable efforts to timely satisfy each of the conditions set forth in Section 7 of this Agreement. 

 

5.2REPORTING STATUS. Until one of the following occurs, the Company shall file all reports required to be filed with the SEC pursuant to the 1934 Act, and the Company shall not terminate its status, or take an action or fail to take any action, which would terminate its status as a reporting company under the 1934 Act: (i) this Agreement terminates pursuant to Section 8 and the Investor has the right to sell all of the Securities without restrictions pursuant to Rule 144 promulgated under the 1933 Act, or such other exemption, or (ii) the date on which the Investor has sold all the Securities and this Agreement has been terminated pursuant to Section 8. 

 

5.3USE OF PROCEEDS. The Company will use the proceeds from the sale of the Shares (excluding amounts paid by the Company for fees as set forth in the Registered Offering Transaction Documents) for general corporate and working capital purposes and acquisitions or assets, businesses or operations or for other purposes that the Board of Directors, in good faith deem to be in the best interest of the Company. 

 

5.4FINANCIAL INFORMATION. During the Open Period, the Company agrees to make available to the Investor via EDGAR or other electronic means the following documents and information on the forms set forth: (i) within five (5) Trading Days after the filing thereof with the SEC, a copy of its Annual Reports on Form 10-K, its Quarterly Reports on Form 10-Q, any Current Reports on Form 8-K and any Registration Statements or amendments filed pursuant to the 1933 Act; (ii) copies of any notices and other information made available or given to the shareholders of the Company generally, contemporaneously with the making available or giving thereof to the shareholders; and (iii) within two 

(2) calendar days of filing or delivery thereof, copies of all documents filed with, and all correspondence sent to, the Principal Market, any securities exchange or market, or the Financial Industry Regulatory Association, unless such information is material nonpublic information.

 

5.5RESERVATION OF SHARES. The Company shall take all action necessary to at all times have authorized, and reserved the amount of Shares included in the Company’s registration statement for issuance pursuant to the Registered Offering Transaction Documents. In the event that the Company determines that it does not have a sufficient number of authorized shares of Common Stock to reserve and keep available for issuance as described in this Section 5.5, the Company shall use all commercially reasonable efforts to increase the number of authorized shares of Common Stock by seeking shareholder approval for the authorization of such additional shares. 

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5.6LISTING. The Company shall promptly secure and maintain the listing of all of the Registrable Securities (as defined in the Registration Rights Agreement) on the Principal Market and each other national securities exchange and automated quotation system, if any, upon which shares of  Common Stock are then listed (subject to official notice of issuance) and shall maintain, such listing of all Registrable Securities from time to time issuable under the terms of the Registered Offering Transaction Documents. Neither the Company nor any of its Subsidiaries shall take any action, which would be reasonably expected to result in the delisting or suspension of the Common Stock on the Principal Market (excluding suspensions of not more than one (1) Trading Day resulting from business announcements by the Company). The Company shall promptly provide to the Investor copies of any notices it receives from the Principal Market regarding the continued eligibility of the Common Stock for listing on such automated quotation system or securities exchange. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 5.6. 

 

5.7TRANSACTIONS WITH AFFILIATES. The Company shall not, and shall cause each of its Subsidiaries not to, enter into, amend, modify or supplement, or permit any Subsidiary to enter into, amend, modify or supplement, any agreement, transaction, commitment or arrangement with any of its or any Subsidiary’s officers, directors, persons who were officers or directors at any time during the previous two (2) years, shareholders who beneficially own 5% or more of the Common Stock, or Affiliates or with any individual related by blood, marriage or adoption to any such individual or with any entity in which any such entity or individual owns a 5% or more beneficial interest (each a “Related Party”), except for (i) customary employment arrangements and benefit programs on reasonable terms, 

(ii) any agreement, transaction, commitment or arrangement on an arms-length basis on terms no less favorable than terms which would have been obtainable from a disinterested third party other than such Related Party, or (iii) any agreement, transaction, commitment or arrangement which is approved by a majority of the disinterested directors of the Company. For purposes hereof, any director who is also an officer of the Company or any Subsidiary of the Company shall not be a disinterested director with respect to any such agreement, transaction, commitment or arrangement. “Affiliate” for purposes hereof means, with respect to any person or entity, another person or entity that, directly or indirectly, (i) has a 5% or more equity interest in that person or entity, (ii) has 5% or more common ownership with that person or entity, (iii) controls that person or entity, or (iv) is under common control with that person or entity. “Control” or “Controls” for purposes hereof means that a person or entity has the power, directly or indirectly, to conduct or govern the policies of another person or entity.

 

5.8FILING OF FORM 8-K. On or before the date which is four (4) Trading Days after the Execution Date, the Company shall file a Current Report on Form 8-K with the SEC describing the terms of the transaction contemplated by the Registered Offering Transaction Documents in the form required by the 1934 Act, if such filing is required. 

 

5.9CORPORATE EXISTENCE. The Company shall use all commercially reasonable efforts to preserve and continue the corporate existence of the Company. 

 

5.10NOTICE OF CERTAIN EVENTS AFFECTING REGISTRATION; SUSPENSION OF RIGHT TO MAKE A PUT. The Company shall promptly notify the Investor upon the occurrence of any of the following events in respect of a Registration Statement or related prospectus in respect of an offering of the Securities: (i) receipt of any request for additional information by the SEC or any other federal or state governmental authority during the period of effectiveness of the Registration Statement for amendments or supplements to the Registration Statement or related prospectus; (ii) the issuance by the SEC or any other federal or state governmental authority of any stop order suspending the effectiveness of any Registration Statement or the initiation of any proceedings for that purpose; (iii) receipt of any notification with respect to the suspension of the qualification or exemption from 

15

qualification of any of the Securities for sale in any jurisdiction or the initiation or notice of any proceeding for such purpose; (iv) the happening of any event that makes any statement made in such Registration Statement or related prospectus or any document incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any changes in the Registration Statement, related prospectus or documents so that, in the case of a Registration Statement, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading, and that in the case of the related prospectus, it will not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; and (v) the Company’s reasonable determination that a post-effective amendment or supplement to the Registration Statement would be appropriate, and the Company shall promptly make available to Investor any such supplement or amendment to the related prospectus. The Company shall not deliver to Investor any Put Notice during the continuation of any of the foregoing events in this Section 5.10.

 

5.11TRANSFER AGENT. The Company shall deliver instructions to its transfer agent to issue Shares to the Investor that are issued to the Investor Pursuant to the Transactions contemplated herein. 

 

5.12ACKNOWLEDGEMENT OF TERMS. The Company hereby represents and warrants to the Investor that: (i) it is voluntarily entering into this Agreement of its own freewill, (ii) it is not entering this Agreement under economic duress, (iii) the terms of this Agreement are reasonable and fair to the Company, and (iv) the Company has had independent legal counsel of its own choosing review this Agreement, advise the Company with respect to this Agreement, and represent the Company in connection with this Agreement. 

 

SECTION VI

CONDITIONS OF THE COMPANY’S OBLIGATION TO SELL

 

The obligation hereunder of the Company to issue and sell the Securities to the Investor is further subject to the satisfaction, at or before each Closing Date, of each of the following conditions set forth below. These conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion.

 

6.1The Investor shall have executed this Agreement and the Registration Rights Agreement and delivered the same to the Company. 

6.2The Investor shall have delivered to the Company the Purchase Price for the Securities being purchased by the Investor. 

6.3No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by  this Agreement. 

 

SECTION VII

FURTHER CONDITIONS OF THE INVESTOR’S OBLIGATION TO PURCHASE

 

The obligation of the Investor hereunder to purchase Securities is subject to the satisfaction, on or before each Closing Date, of each of the following conditions set forth below.

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7.1The Company shall have executed the Registered Offering Transaction Documents and delivered the same to the Investor. 

 

7.2The representations and warranties of the Company shall be true and correct as of the date when made and as of the applicable Closing Date as though made at that time and the Company shall have performed, satisfied and complied with the covenants, agreements and conditions required by the Registered Offering Transaction Documents to be performed, satisfied or complied with by the Company on or before such Closing Date. The Investor may request an update as of such Closing Date regarding the representation contained in Section 4.3. 

 

7.3The Company shall have executed and delivered to the Investor the certificates representing, or have executed electronic book-entry transfer of, the Securities (in such denominations as the Investor shall request) being purchased by the Investor at such Closing. 

 

7.4The Board of Directors of the Company shall have adopted resolutions consistent with Section 4.2(ii) (the “Resolutions”) and such Resolutions shall not have been amended or rescinded prior to such Closing Date. 

 

7.5No statute, rule, regulation, executive order, decree, ruling or injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of competent jurisdiction which prohibits the consummation of any of the transactions contemplated by this  Agreement. 

 

7.6Pursuant to the terms of the Registration Rights Agreement, within thirty (30) days after the Agreement is executed, the Company agrees to use its best efforts to file with the SEC the Registration Statement covering the shares of stock underlying the Equity Financing contemplated herein. Such Registration Statement shall conform to the requirements of the rules and regulations of the SEC and the terms and conditions of Equity Financing this agreement as expressed in the Registration Statement shall be reviewed and approved by the Investor. The Company will take any and all steps necessary to have the Registration Statement declared effective by the SEC within 30 days but no more than 90 days after the Company has filed the Registration Statement. Such Registration Statement shall conform to the requirements of the rules and regulations of the SEC and the terms and conditions of the equity financing as expressed in the Registration Statement and shall be reviewed and approved by the Investor. The Registration Statement shall be effective on each Closing Date and no stop order suspending the effectiveness of the Registration Statement shall be in effect or to the Company’s knowledge shall be pending or threatened. Furthermore, on each Closing Date (I) neither the Company nor the Investor shall have received notice that the SEC has issued or intends to issue a stop order with respect to such Registration Statement or that the SEC otherwise has suspended or withdrawn the effectiveness of such Registration Statement, either temporarily or permanently, or intends or has threatened to do so (unless the SEC’s concerns have been addressed), and (II) no other suspension of the use or withdrawal of the effectiveness of such Registration Statement or related prospectus shall exist. 

 

7.7At the time of each Closing, the Registration Statement (including information or documents incorporated by reference therein) and any amendments or supplements thereto shall not contain any untrue statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading or which would require public disclosure or an update supplement to the prospectus. 

 

7.8If applicable, the shareholders of the Company shall have approved the issuance of any Shares in excess of the Maximum Common Stock Issuance in accordance with Section 2.5 or the 

17

Company shall have obtained appropriate approval pursuant to the requirements of applicable state and federal laws and the Company’s Articles of Incorporation and By-laws.

 

7.9The conditions to such Closing set forth in Section 2.3 shall have been satisfied on or before such Closing Date. 

 

7.10The Company shall have certified to the Investor the number of Shares of Common Stock outstanding when a Put Notice is given to the Investor. The Company’s delivery of a Put Notice to the Investor constitutes the Company’s certification of the existence of the necessary number of shares of Common Stock reserved for issuance. 

 

SECTION VIII TERMINATION

 

This Agreement shall terminate upon any of the following events:

 

8.1when the Investor has purchased an aggregate of Five Million Dollars ($5,000,000) worth of the Common Stock of the Company pursuant to this Agreement; or 

 

8.2on the date which is twenty four (24) months after the Effective Date; or 

 

8.3at such time that the Registration Statement is no longer in effect. 

 

Any and all shares, or penalties, if any, due under this Agreement shall be immediately payable and due upon termination of this Agreement.

 

SECTION IX SUSPENSION

 

This Agreement shall be suspended upon any of the following events, and shall remain suspended until such event is rectified:

 

i.The trading of the Common Stock is suspended by the SEC, the Principal Market or FINRA for a period of two (2) consecutive Trading Days during the Open Period; or 

 

ii.The Common Stock ceases to be quoted, listed or traded on the Principal Market or the Registration Statement is no longer effective (except as permitted hereunder). Immediately upon the occurrence of one of the above-described events, the Company shall send written notice of such event to the Investor. 

 

SECTION X INDEMNIFICATION

 

In consideration of the parties mutual obligations set forth in the Transaction Documents, the Company ( the “Indemnitor”) shall defend, protect, indemnify and hold harmless the Investor and all of the investor’s shareholders, officers, directors, employees, counsel, and direct or indirect investors and any of the foregoing person’s agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the “Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs, penalties,  fees, liabilities and damages, and reasonable expenses in connection therewith (irrespective of whether any

18

such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys’ fees and disbursements (the “Indemnified Liabilities”), incurred by any Indemnitee as a result of, or arising out of, or relating to (I) any misrepresentation or breach of any representation or warranty made by the Indemnitor or any other certificate, instrument or document contemplated hereby or thereby; (II) any breach of any covenant, agreement or obligation of the Indemnitor contained in the Registered Offering Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby; or (III) any cause of action, suit or claim brought or made against such Indemnitee by a third party and arising out of or resulting from the execution, delivery, performance or enforcement of the Registered Offering Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, except insofar as any such misrepresentation, breach or any untrue statement, alleged untrue statement, omission or alleged omission is made in reliance upon and in conformity with information furnished to Indemnitor which is specifically intended for use in the preparation of any such Registration Statement, preliminary prospectus, prospectus or amendments to the prospectus. To the extent that the foregoing undertaking by the Indemnitor may be unenforceable for any reason, the Indemnitor shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. The indemnity provisions contained herein shall be in addition to any cause of action or similar rights Indemnitor may have, and any liabilities the Indemnitor or the Indemnitees may be subject to.

 

SECTION XI

GOVERNING LAW; DISPUTES SUBMITTED TO ARBITRATION.

 

11.1LAW GOVERNING THIS AGREEMENT. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state or federal courts located in New York City, New York State. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The parties executing this Agreement and other agreements referred to herein or delivered in connection herewith on behalf of the Company agree to submit to the in personam jurisdiction of such courts and hereby irrevocably waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other Transaction Documents by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. 

 

11.2LEGAL FEES; AND MISCELLANEOUS FEES. Except as otherwise set forth in the Registered Offering Transaction Documents (including but not limited to Section V of the Registration Rights Agreement), each party shall pay the fees and expenses of its advisers, counsel, the accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. Any attorneys’ fees and expenses incurred by either the Company or the Investor in connection with the preparation, negotiation, execution and delivery of any amendments to this Agreement or relating to the enforcement of the rights of any 

19

party, after the occurrence of any breach of the terms of this Agreement by another party or any default by another party in respect of the transactions contemplated hereunder, shall be paid on demand by the party which breached the Agreement and/or defaulted, as the case may be. The Company shall pay all stamp and other taxes and duties levied in connection with the issuance of any Securities.

 

11.3COUNTERPARTS. This Agreement may be executed in any number of counterparts and by the different signatories hereto on separate counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument. This Agreement may be executed by facsimile transmission, PDF, electronic signature or other similar electronic means with the same force and effect as if such signature page were an original thereof. 

 

11.4HEADINGS; SINGULAR/PLURAL. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement. Whenever required by the context of this Agreement, the singular shall include the plural and masculine shall include the feminine. 

 

11.5SEVERABILITY. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the validity or enforceability of any provision of this Agreement in any other jurisdiction. 

 

11.6ENTIRE AGREEMENT; AMENDMENTS. This Agreement is the FINAL AGREEMENT between the Company and the Investor with respect to the terms and conditions set forth herein, and, the terms of this Agreement may not be contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the Parties. No provision of this Agreement may be amended other than by an instrument in writing signed by the Company and the Investor, and no provision hereof may be waived other than by an instrument in writing signed by the party against whom enforcement is sought. The execution and delivery of the Registered Offering Transaction Documents shall not alter the force and effect of any other agreements between the Parties, and the obligations under those agreements. 

 

11.7NOTICES. Any notices or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered (I) upon receipt, when delivered personally; (II) upon receipt, when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (III) one (1) day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be: 

 

 

If to the Company:

Applife Digital Solutions, Inc Attn: Matthew Reid

338 N. Market St., #161

San Jose, CA 95110__________ Fax:

 

 

 

With a copy to:

via email: m_re_id_@_ap_p_lif_e_di_gi_ta_l.c_o_m_, m__at_tr_ei_d._email@gmail.com

Attn:

____________________

____________________ Fax:

20

 

If to the Investor:GHS Investments, LLC 

420 Jericho Turnpike,

Suite 207

Jericho, NY 11753

 

 

Each party shall provide five (5) days prior written notice to the other party of any change in address or facsimile number.

 

11.8NO ASSIGNMENT. This Agreement may not be assigned. 

 

11.9NO THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit of the parties hereto and is not for the benefit of, nor may any provision hereof be enforced by, any other person, except that the Company acknowledges that the rights of the Investor may be enforced by its general partner. 

 

11.10SURVIVAL. The representations and warranties of the Company and the Investor contained in Sections 3 and 4, the agreements and covenants set forth in Sections 5 and 6, and the indemnification provisions set forth in Section 10, shall survive each of the Closings and the termination of this Agreement. 

 

11.11PUBLICITY. The Investor acknowledges that this Agreement and all or part of the Registered Offering Transaction Documents may be deemed to be “material contracts” as that term is defined by Item 601(b)(10) of Regulation S-K, and that the Company may therefore be required to file such documents as exhibits to reports or registration statements filed under the 1933 Act or the 1934 Act. The Investor further agrees that the status of such documents and materials as material contracts shall be determined solely by the Company, in consultation with its counsel. 

 

11.12FURTHER ASSURANCES. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby. 

 

11.13PLACEMENT AGENT. If so required, the Company agrees to pay a registered broker dealer, to act as placement agent, a percentage of the Put Amount on each Put toward the fee as outlined in that certain placement agent agreement entered into between the Company and the placement agent. The Investor shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other persons or entities for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by the Registered Offering Transaction Documents. The Company shall indemnify and hold harmless the Investor, their employees, officers, directors, agents, and partners, and their respective affiliates, from and against all claims, losses, damages, costs (including the costs of preparation and attorney’s fees) and expenses incurred in respect of any such claimed or existing fees, as such fees and expenses are incurred. 

 

11.14NO STRICT CONSTRUCTION. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party, as the parties mutually agree that each has had a full and fair opportunity to review this Agreement and seek the advice of counsel on it. 

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11.15REMEDIES. The Investor shall have all rights and remedies set forth in this Agreement and the Registration Rights Agreement and all rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights which the Investor has by law. Any person having any rights under any provision of this Agreement shall be entitled to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any default or breach of any provision of this Agreement, including the recovery of reasonable attorneys fees and costs, and to exercise all other rights granted by law. 

 

11.16PAYMENT SET ASIDE. To the extent that the Company makes a payment or payments to the Investor hereunder or under the Registration Rights Agreement or the Investor enforces or exercises its rights hereunder or thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred. 

 

11.17PRICING OF COMMON STOCK. For purposes of this Agreement, the price of the Common Stock shall be as reported by Quotestream Media. 

 

SECTION XII

NON-DISCLOSURE OF NON-PUBLIC INFORMATION

 

The Company shall not disclose non-public information to the Investor, its advisors, or its representatives.

 

Nothing herein shall require the Company to disclose non-public information to the Investor or its advisors or representatives, and the Company represents that it does not disseminate non-public information to any investors who purchase stock in the Company in a public offering, to money managers or to securities analysts, provided, however, that notwithstanding anything herein to the contrary, the Company will, as hereinabove provided, immediately notify the advisors and representatives of the Investor and, if any, underwriters, of any event or the existence of any circumstance (without any obligation to disclose the specific event or circumstance) of which it becomes aware, constituting non- public information (whether or not requested of the Company specifically or generally during the course of due diligence by such persons or entities), which, if not disclosed in the prospectus included in the Registration Statement would cause such prospectus to include a material misstatement or to omit a material fact required to be stated therein in order to make the statements, therein, in light of the circumstances in which they were made, not misleading. Nothing contained in this Section 12 shall be construed to mean that such persons or entities other than the Investor (without the written consent of the Investor prior to disclosure of such information) may not obtain non-public information in the course of conducting due diligence in accordance with the terms of this Agreement and nothing herein shall prevent any such persons or entities from notifying the Company of their opinion that based on such due diligence by such persons or entities, that the Registration Statement contains an untrue statement of material fact or omits a material fact required to be stated in the Registration Statement or necessary to make the statements contained therein, in light of the circumstances in which they were made, not misleading.

 

SECTION XIII ACKNOWLEDGEMENTS OF THE PARTIES

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Notwithstanding anything in this Agreement to the contrary, the parties hereto hereby acknowledge and agree to the following: (i) the Investor makes no representations or covenants that it will not engage in trading in the securities of the Company, other than the Investor will not short the Company’s common stock at any time during this Agreement; (ii) the Company shall, by 8:30 a.m. EST on the second Trading Day following the date hereof, file a current report on Form 8-K disclosing the material terms of the transactions contemplated hereby and in the other Registered Offering Transaction Documents; (iii) the Company has not and shall not provide material non-public information to the Investor unless prior thereto the Investor shall have executed a written agreement regarding the confidentiality and use of such information; and (iv) the Company understands and confirms that the Investor will be relying on the acknowledgements set forth in clauses (i) through (iii) above if the Investor effects any transactions in the securities of the Company.

 

[Signature page follows]

23

 

 

Your signature on this Signature Page evidences your agreement to be bound by the terms and conditions of the Investment Agreement as of the date first written above. The undersigned signatory hereby certifies that he has read and understands the Investment Agreement, and the representations made by the undersigned in this Investment Agreement are true and accurate, and agrees to be bound by its terms.

 

GHS INVESTMENTS, LLC

 

 

By: /s/ Sarfraz Hajee_________________ 

Name: _S_a_rfr_az_H_a_je_e____

Title: __M_e_m_b_er_______

 

APPLIFE DIGITAL SOLUTIONS, INC.

 

By: /s/ Matt Reid_____________________ Name: ____M_at_th_e_w_R_ei_d _

Title: ______c_eo_____

 

 

 

 

[SIGNATURE PAGE OF EQUITY FINANCING AGREEMENT]

24

 

LIST OF EXHIBITS

 

 

 

EXHIBIT ARegistration Rights Agreement EXHIBIT BNotice of Effectiveness EXHIBIT CPut Notice 

EXHIBIT DPut Settlement Sheet 

25

 

EXHIBIT A REGISTRATION 
RIGHTS AGREEMENT

See attached.

26

 

 

EXHIBIT B

 

FORM OF NOTICE OF EFFECTIVENESS OF REGISTRATION STATEMENT

 

Date: __________

 

[TRANSFER AGENT]

 

Re: Applife Digital Solutions, Inc., Ladies and Gentlemen:

We are counsel to Applife Digital Solutions, Inc., a Nevada corporation (the “Company”), and have represented the Company in connection with that certain Equity Financing Agreement (the “Investment Agreement”) entered into by and among the Company and GHS Investments, LLC(the “Investor”) pursuant to which the Company has agreed to issue to the Investor shares of the Company’s common stock, $0.001 par value per share (the “Common Stock”) on the terms and conditions set forth in the Investment Agreement. Pursuant to the Investment Agreement, the Company also has entered into a Registration Rights Agreement with the Investor (the “Registration Rights Agreement”) pursuant to which the Company agreed, among other things, to register the Registrable Securities (as defined in the Registration Rights Agreement), including the shares of Common Stock issued or issuable under the Investment Agreement under the Securities Act of 1933, as amended (the “1933 Act”). In connection with the Company’s obligations under the Registration Rights Agreement, on    , 20__, the Company filed a Registration Statement on Form S- ___ (File No. __-________) (the “Registration Statement”) with the Securities and Exchange Commission (the “SEC”) relating to the Registrable Securities which names the Investor as a selling shareholder thereunder.

In connection with the foregoing, we advise you that a member of the SEC's  staff has  advised  us by telephone that the SEC has entered an order declaring the Registration Statement effective under  the 1933 Act at on  , 20 and we have no knowledge, after telephonic inquiry of a member of the SEC's staff, that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and  the  Registrable Securities are available for sale under the 1933 Act pursuant to the Registration Statement

 

 

 

 

Very truly yours,

 

 

 

[Company Counsel]

27

 

EXHIBIT C
FORM OF PUT NOTICE

 

 

Date:

 

RE: Put Notice Number

 

 

Dear Mr./Ms.__________,

 

This is to inform you that as of today, Applife Digital Solutions, Inc., a _______ corporation (the “Company”), hereby elects to exercise its right pursuant to the Equity Financing Agreement to require GHS Investments LLC to purchase shares of its common stock. The Company hereby certifies that:

 

The amount of this put is $. 

 

 

The Pricing Period runs from ________ until _______________. The Purchase Price is: $  

The number of Put Shares Due: . 

 

The current number of shares of common stock issued and outstanding is: _________________. The number of shares currently available for issuance on the S-1 is: . 

 

 

Regards,

 

Applife Digital Solutions, Inc.,

 

By: __________________________________ Name:

Title:

28

 

 

 

EXHIBIT D

 

PUT SETTLEMENT SHEET

 

Date: ________________ Dear Mr. ________,

Pursuant to the Put given by Applife Digital Solutions, Inc., to GHS Investments LLC (“GHS”) on

_________________ 201_, we are now submitting the amount of common shares for you to issue to GHS.

 

 

Please have a certificate bearing no restrictive legend totaling immediately and send via DWAC to the following account:

 

[INSERT]

 

If not DWAC eligible, please send FedEx Priority Overnight to:

 

[INSERT ADDRESS]

__________ shares issued to GHS

 

 

Once these shares are received by us, we will have the funds wired to the Company. Regards,

GHS INVESTMENTS LLC

 

 

By: _________________________________ Name:

Title

29

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