UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 14, 2022
SPINE INJURY SOLUTIONS, INC.
(Exact name of registrant as specified in its charter)
Delaware | 000-27407 | 98-0187705 | ||
(State or other jurisdiction of incorporation or organization) |
(Commission File No.) |
(IRS Employee Identification No.) |
600 Anton Boulevard, Suite 1100
Costa Mesa, CA 92626
(Address of principal executive offices)
(Registrant’s telephone number, including area code: (855) 777-0888
Not applicable.
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
Title of each class | Trading Symbol(s) |
Name of each exchange on which registered | ||
None. |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
On April 14, 2022, William F. Donovan, M.D. and Peter L. Dalrymple tendered their resignations as members of the Board of Directors of Spine Injury Solutions, Inc. (the “Company”). Dr. Donovan and Mr. Dalrymple have advised the Company that their resignations were not the result of any disagreement with the Company on any matter relating to its operation, policies (including accounting or financial policies) or practices.
Following the resignations of Dr. Donovan and Mr. Dalrymple, the Board appointed Robert J. Brilon who is the Company’s Chief Financial Officer as a member of the Company’s Board of Directors.
Mr. Brilon has served as the Company’s Chief Financial Officer since October 1, 2021. He also has served as Chief Financial Officer for Iveda Solutions, Inc. (NASDAQ: IVDA) since December 2013. He was also Iveda’s President from February 2014 to July 2018 and Treasurer from December 2013 to July 2018 and was appointed Treasurer again on December 15, 2021. Mr. Brilon served as Iveda’s Executive Vice President of Business Development from December 2013 to February 2014 and as Iveda’s interim Chief Financial Officer and Treasurer from December 2008 to August 2010. Mr. Brilon joined New Gen Management Services, Inc. in July 2017 as the CFO (subsequently becoming President and CFO of New Gen in July 2018). Mr. Brilon was the President, Chief Financial Officer, Corporate Secretary, and Director of both Vext Science, Inc and New Gen until he resigned in February 2020. Mr. Brilon served as Chief Financial Officer and Executive Vice President of Business Development of Brain State Technologies, a brainwave optimization software licensing and hardware company, from August 2010 to November 2013. From January 2010 to August 2010, Mr. Brilon served as Chief Financial Officer of MD Helicopters, a manufacturer of commercial and light military helicopters. Mr. Brilon also served as Chief Executive Officer, President, and Chief Financial Officer of InPlay Technologies (NASDAQ: NPLA), formerly, Duraswitch (NASDAQ: DSWT), a company that licensed patented electronic switch technology and manufactured digital pen technology, from November 1998 to June 2007. Mr. Brilon served as Chief Financial Officer of Gietz Master Builders from 1997 to 1998, Corporate Controller of Rental Service Corp. (NYSE: RRR) from 1995 to 1996, Chief Financial Officer and Vice President of Operations of DataHand Systems, Inc. from 1993 to 1995, and Chief Financial Officer of Go-Video (AMEX:VCR) from 1986 to 1993. Mr. Brilon is a certified public accountant and practiced with several leading accounting firms, including McGladrey Pullen, Ernst and Young and Deloitte and Touche. Mr. Brilon holds a Bachelor of Science degree in Business Administration from the University of Iowa.
On April 19, 2022, the Company and Mr. Brilon entered into an Independent Contractor Agreement whereby Mr. Brilon (the “Independent Contractor Agreement”) agreed to serve as the Chief Financial Officer of the Company and shall have such duties and authorities consistent with such position as are customary for the position of chief financial officer of a company of the size and nature of the Company, and such other duties and authorities as shall be reasonably determined from time to time by the Board of Directors of the Company consistent with such position and to serve as an officer of any subsidiary of the Company as may be reasonably requested from time to time by the Board of Directors. In addition, Mr. Brilon agreed to serve as a member of the Company’s Board of Directors. The Independent Contractor Agreement may be terminated by either party on 15 days prior written notice without cause or five days after written notice in the event of a breach of the agreement by either party.
Mr. Brilon also signed a Proprietary Information and Inventions Agreement whereby he agreed that any proprietary information developed during the term of his service will be owned by the Company and that such information will be held in strict confidence and not disclosed to anyone outside the Company. In addition, Mr. Brilon agreed to, during the term of his service to the Company, refrain from engaging in or assisting anyone from engaging in any activity that is competitive with or similar to the business or proposed business of the Company and from soliciting any employees or consultants to the Company during the term of his engagement and thereafter for a period of one year from leaving or terminating their engagement with the Company.
As Compensation for Mr. Brilon’s service to the Company, the Company awarded him 4,635,720 shares of Common Stock which vest 25% on each April 18 commencing on April 18, 2023 so long as Mr. Brilon is providing services to the Company or one of its subsidiaries.
The Company confirms that (1) there is no family relationship between Mr. Brilon and any director or executive officer of the Company, (2) there was no arrangement or understanding between Mr. Brilon and any other person pursuant to which he was elected to his position with the Company, and (3) there is no transaction between Mr. Brilon and the Company that would require disclosure under Item 404(a) of Regulation S-K.
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Item 8.01 Other Events.
On April 14, 2022, the Company appointed Roy Bao as its Chief Technology Officer. In this role, Mr. Bao will develop a plan to implement the Company’s Bitech Intellisys-8 technology in order to deploy it to operators of cryptocurrency miners and data centers, define a new product roadmap, introduce additional revenue sources, recruit and lead a planned engineering taskforce and develop new product lines for the Company with a focus in cryptocurrency mining and data centers.
Mr. Bao has deep technical knowledge in Green Energy fields with a record of managing complex engineering projects and demonstrated leadership in facilitating, structuring, negotiating, and bringing complex technical issues to closure including projects involving production and storage of clean, cost-effective power solutions designed to increase energy efficiency. Mr. Bao has been an entrepreneur, developer and manager with companies such as Cisco Systems, Fujitsu Network Communications, Alcatel Network Systems, among others for more than 30 years. Mr. Bao received a Bachelor of Science in Electrical Engineering, Summa Cum Laude, and a Master of Science in Electrical Engineering both from the University of Texas.
Item 9.01 Financial Statements and Exhibits.
(d) | The following exhibits are filed with this Current Report: |
Exhibit No. | Description | |
10.1† | Form of Independent Contractor Agreement. | |
10.2† | Form of Proprietary Information and Inventions Agreement. | |
10.3† | Form of Restricted Stock Agreement. | |
17.1 | Resignation Letter of William F. Donovan, M.D. dated April 14, 2022. | |
17.2 | Resignation Letter of Peter L. Dalrymple dated April 14, 2022. | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
† | Includes management contracts and compensation plans and arrangements |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.
SPINE INJURY SOLUTIONS, INC. | ||
Dated: April 20, 2022 | By: | /s/ Benjamin Tran |
Benjamin Tran | ||
Chief Executive Officer |
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Exhibit 10.1
INDEPENDENT CONSULTANT AGREEMENT
THIS INDEPENDENT CONSULTANT AGREEMENT (the “Agreement”) is made effective as of [__] (the “Effective Date”) above by and between Spine Injury Solutions, Inc., a Delaware corporation located at 600 Anton Boulevard, Suite 1100, Costa Mesa, CA 92626 (the “Company”), and [__] (the “Consultant”). For purposes hereof, the Company and Consultant may collectively be referred to as the “Parties”.
BACKGROUND INFORMATION
A. | WHEREAS, the Company desires to retain Consultant to act as the Company’s Chief Technology Officer to provide the services as described on the attached Schedule A pursuant to the terms and conditions of this Agreement (the “Services”); and |
B. | WHEREAS, Consultant desires to provide the Services to the Company upon the terms and subject to the conditions of this Agreement. |
PROVISIONS
NOW, THEREFORE, in consideration of the foregoing, of the mutual promises herein contained, and of other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree as follows:
1. | SERVICES, COMPENSATION, WARRANTY, REPRESENTATION. |
1.1 | Consultant agrees to provide the as set forth in the attached Schedule A (collectively, the “Services”). In addition, Consultant agrees to abide by the terms and conditions of all policies applicable to employees and consultant of the Company as may be adopted by the Company from time to time. |
1.2 | As full and complete compensation for the Services to be performed by Consultant pursuant to this Agreement, the Company agrees to award Consultant [__] shares of the Company’s common stock, par value $0.001 per share in accordance with the Restricted Award Agreement with a Grant date of [__]. The Company will also pay those expenses of Consultant which are incurred in connection with Consultant’s delivery of Services hereunder, provided such expenses are approved in advance by the Company. Consultant shall deliver to the Company copies of all expense receipts at the time of submission of invoices. |
1.3 | Consultant warrants that the Services to be provided under this Agreement shall be performed by Consultant in a professional manner conforming to generally accepted industry standards and practices. |
2. | STATUS OF CONSULTANT. In performing the Services, nothing in this Agreement shall be construed to create the relationship of employer-employee, principal-agent or master-servant, either expressed or implied. Further, the relationship between the Parties is that of contract, Consultant being an independent contractor, free from interference or control by the Company in the performance of Services, subject only to the terms of this Agreement. Neither the Company nor Consultant has the authority to bind or incur any obligation for the other, and each agrees that Consultant will not hold itself out to any third party as having, or act toward any third party in any manner which would suggest that they have, any such authority. |
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3. | TAX AND INSURANCE. Consultant acknowledges that, as an independent contractor, Consultant is not covered by the Company’s workers’ or unemployment compensation insurance. Additionally, Consultant agrees that no withholding will be made by the Company for any Federal, state, local, Social Security, Medicare or other taxes (for any governmental or other agency) from any amounts paid to Consultant by the Company under this Agreement. Consultant further agrees to be solely and personally responsible for the payment of all such taxes from the compensation or other remuneration paid Consultant under this Agreement. |
4. | TERM AND TERMINATION OF THE AGREEMENT. |
4.1 | The term of this Agreement shall commence as of the Effective Date and shall remain in effect until fifteen (15) days following the date that either Party gives the other written notice of termination. In the event of a breach of this Agreement by either Party which is not cured within five (5) days of its receipt of written notice thereof, this Agreement shall be immediately terminated. |
4.2 | In the event of the termination or expiration of this Agreement, the following provisions shall apply: |
(a) | Unless otherwise agreed upon in writing by the Parties, Consultant shall cease performing Services; | |
(b) | Consultant shall deliver to the Company all “Proprietary Information” (as defined in the Proprietary Information and Inventions Agreement between the Parties dated as of the Effective Date (the “Proprietary Information Agreement”), together with all copies thereof, in Consultant’s possession or under Consultant’s control and to certify in writing to the Company that all of such materials have so been returned; and | |
(c) | The Parties agree to cooperate fully and to provide promptly all information necessary or useful relating to the Proprietary Information. |
4.3 | The duties and obligation of Sections 3, 4 and 5 of this Agreement shall survive the termination of this Agreement. Consultant will indemnify the Company for damages, liabilities and costs associated with Consultant’s breach of any of the provisions of this Agreement or the intentional acts of Consultant. |
5. | MISCELLANEOUS. |
5.1 | Notices. Any notice or other communications required or permitted hereunder shall be in writing and shall be sufficiently given if personally delivered to it or sent by email, overnight courier or registered mail or certified mail, postage prepaid, addressed as follows: |
If to the Company, to:
c/o Benjamin Tran
Spine Injury Solutions, Inc.
600 Anton Boulevard, Suite 1100
Costa Mesa, CA 92626
Email: ben@btcmcorp.com
With a copy to:
Laura Anthony and Lazarus Rothstein
Anthony L.G., PLLC
625 North Flagler Drive, Suite 600
West Palm Beach, FL 33401
Email: lanthony@anthonypllc.com and lrothstein@anthonypllc.com
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If to Consultant to:
[__]
Email: [__]
or such other addresses as shall be furnished in writing by any Party in the manner for giving notices hereunder, and any such notice or communication shall be deemed to have been given (i) upon receipt, if personally delivered, (ii) on the day after dispatch, if sent by overnight courier, (iii) upon dispatch, if transmitted by telecopy and receipt is confirmed by telephone and (iv) three (3) days after mailing, if sent by registered or certified mail.
5.2 | This Agreement is based on the professional services of Consultant. No Services or rights or obligations associated therewith may be assigned or transferred by Consultant without the prior written consent of the Company. Any attempt by Consultant to assign or transfer any of the rights, duties, or obligations of this Agreement without the Company’s written consent is void. |
5.3 | Consultant understands and agrees that the Company may suffer irreparable harm in the event that Consultant breaches any of Consultant’s obligations under this Agreement or the Proprietary Information Agreement. Accordingly, Consultant agrees that, in the event of said breach, the Company, in addition to any other rights, remedies or damages available to it at law or in equity, the Company may be entitled to a temporary restraining order, preliminary injunction and permanent injunction in order to prevent or to restrain any such breach by Consultant. |
5.4 | This Agreement shall be interpreted and enforced in accordance with the laws of the State of Delaware. Each of the parties submits to the jurisdiction of any state or federal court sitting in Orange County, California, in any action or proceeding arising out of or relating to this Agreement and agrees that all claims in respect of the action or proceeding may be heard and determined by any such court. Each party also agrees not to bring any action or proceeding arising out of or relating to this Agreement in any other court. Each of the parties waives any defense of inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond, surety, or other security that might be required of any other party with respect thereto. Consultant agrees and consents to venue in Orange County, California and to the in personam jurisdiction of the aforementioned courts. |
5.5 | This Agreement and the agreements referenced herein represent the sole and entire agreement between the parties and supersedes any and all prior agreements, negotiations, and discussions between the parties or their respective counsel with respect to the subject matters covered in this Agreement. This Agreement may be modified only by a writing signed by both parties. |
5.6 | If either party initiates proceedings for the other’s breach of this Agreement, the prevailing party shall recover attorneys’ fees and costs, including such fees and costs on any enforcement or appeal proceedings. |
5.7 | This Agreement may be executed in two counterparts, each of which shall constitute an original, but all of which together shall constitute one and the same document. |
5.8 | The term “Consultant” refers to the Consultant named above, the Consultant’s heirs, executors, guardians, administrators, successors, and assigns, and each of them, jointly and severally. |
(Signatures appear on following page.)
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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized representatives as of the Effective Date.
SPINE INJURY SOLUTIONS, INC. | |||
By: | |||
[__] | [__] |
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INDEPENDENT CONSULTANT AGREEMENT
SCHEDULE A
Description of Services: | The following services will be performed on behalf the Company’s subsidiary, Bitech Mining Corporation:
(a) [__] |
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Exhibit 10.2
STATEMENT REGARDING PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT
Attached to this statement is your Proprietary Information and Inventions Agreement (the “Agreement”).
Please take the time to review the Agreement carefully. It contains material restrictions on your right to disclose or use, during or after your engagement, certain information and technology learned by you during your engagement.
The Company considers this Agreement to be very important to the protection of its business. It intends to enforce the terms of the Agreement and to pursue appropriate injunctions, restraining orders, and money damages, should you violate the Agreement.
If you have any questions concerning this Agreement, you may wish to consult an attorney of your own choice. The employees and agents of the Company are not authorized to give you, and will not give you, any legal advice concerning this Agreement.
If you have read and understand the Agreement, and if you agree to its terms and conditions, please return a fully executed copy of it to the Company, retaining one copy for yourself.
PROPRIETARY
INFORMATION AND INVENTIONS AGREEMENT
(INCLUDING NON-COMPETITION DURING ENGAGEMENT TERM)
In consideration of the Company retaining me to provide services to the Company (as such term is defined below in Subsection A of Section I), and/or the compensation I receive from the Company, and for other good and valuable consideration, the receipt and sufficiency of which I hereby acknowledge, I hereby agree to the terms, conditions and other provisions of this Agreement.
I understand that, but for my agreement to and execution of this Agreement (and the delivery by me to the Company of my signed copy of this Agreement), the Company would not hire me as a consultant and/or continue to retain me. I, however, also understand that my retention with the Company is “at-will” (as further addressed in Section X below) and that my agreement to and my execution and delivery of this Agreement do not in any way alter the at-will nature of my retention by the Company.
I understand that, during the course of my work as an employee of the Company, I have had and will have access to Proprietary Information (as such term is defined below in Subsection B of Section I) concerning the Company, its employees, its operations, its vendors and its clients. I acknowledge that the Company has developed, compiled, and otherwise obtained, often at great expense, this information and that this information has great value to the Company’s business. I agree to hold in strict confidence all Proprietary Information and I will not disclose any Proprietary Information to anyone outside of the Company, and I will not use any such Proprietary Information, except to the extent expressly and unambiguously permitted by this Agreement.
I. | CERTAIN Definitions |
A. The Company
As used in this Proprietary Information and Inventions Agreement (“Agreement”), the term “Company” refers to Spine Injury Solutions, Inc., a Delaware corporation, and each of its subsidiaries and affiliated companies. I recognize and agree that my obligations under this Agreement and all terms of this Agreement apply to me regardless of whether I provide services to or work for Spine Injury Solutions, Inc. or any of its subsidiaries or affiliated companies. Furthermore, I understand and agree that the terms of this Agreement will continue to apply to me even if I transfer at some time from Spine Injury Solutions, Inc. to a subsidiary or affiliate of Spine Injury Solutions, Inc. or from one subsidiary or affiliate of Spine Injury Solutions, Inc. to another subsidiary or affiliate of Spine Injury Solutions, Inc.
B. Proprietary Information: Definition and Ownership
I understand that the Company possesses and will continually obtain and possess Proprietary Information (as defined below) that is critical to its business. I also understand that the services I provide to the Company creates a relationship of confidence and trust between me and the Company with respect to the possession, disclosure and use of Proprietary Information. For purposes of this Agreement, “Proprietary Information” is information that was or will be developed, created, or discovered by or on behalf of the Company, or that became or will become known by, or was or is conveyed by a third party to, the Company, in each case that has commercial value to or in the Company’s business or the business of a third party disclosing such information.
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Subject to the last sentence of this paragraph, Proprietary Information includes, but is not limited to, information (whether or not patentable, copyrightable, or registrable under any intellectual property laws or industrial property laws in the United States or elsewhere) relating to, comprising, containing, summarizing, describing, reflecting or in any way referencing: software programs and subroutines; source and object code; databases; database criteria; user profiles; scripts; algorithms; processes; trade secrets; designs; methodologies; technology; know-how; processes; data; ideas; techniques; inventions; modules; features and modes of operation; internal documentation; works of authorship; technical, business, financial, client, marketing, and product development plans; forecasts; other employees’ positions, skill levels, duties, compensation and all other terms of their engagement (unless the restriction on disclosure is not permitted by law); employee and consultant lists (unless the restriction on disclosure is not permitted by law); client and supplier lists; contacts at or knowledge of clients or prospective clients of the Company; contacts at or knowledge of suppliers or prospective suppliers of the Company; other information concerning the Company’s or its any of its clients’ actual or anticipated products or services, business, research or development; and any information that is received in confidence by or on behalf of the Company from any other person or entity. However, Proprietary Information does not include any information to the extent: (1) the information is or becomes publicly known through lawful means; (2) the information was rightfully in my possession or part of my general knowledge prior to my engagement by the Company as specifically identified and disclosed by me in Exhibit A; or (3) the information is disclosed to me without confidential or proprietary restriction by a third party who rightfully possesses the information (without confidential or proprietary restriction).
All Proprietary Information and all title, patents, patent rights, copyrights, trade secret rights, trademarks, trademark rights, and other intellectual property and rights anywhere in the world (collectively “Rights”) in connection therewith will be the sole and exclusive property of the Company. I hereby assign to the Company any and all rights (including, without limitation, any and all Rights) I have or acquire in Proprietary Information.
C. Company Materials
I understand that the Company possesses or will possess Company Materials (as defined below) that are important to its business. For purposes of this Agreement, “Company Materials” are documents or other media or tangible items that comprise, contain, summarize, describe, reflect, embody or in any way reference Proprietary Information and/or any other information or materials concerning the business, operations, finances or plans of the Company, whether such documents, media or items have been prepared by me or by others.
Company Materials include, but are not limited to: blueprints; drawings; photographs; charts; graphs; notes; notebooks; client lists; supplier lists; emails; manuals; presentation materials; computers; computer disks, tapes and printouts; computer hard drives; zip or thumb drives; PDAs and similar devices; sound recordings; and other printed, typewritten and/or handwritten documents, sample products, prototypes and models, of any kind.
II. | OBLIGATIONS TO PROTECT PROPRIETARY INFORMATION |
I represent and warrant that from the time of my first contact or communication with the Company, I have held in strict confidence all Proprietary Information and have not disclosed any Proprietary Information to anyone outside of the Company, or used, copied, published, or summarized any Proprietary Information, except in each instance only to the extent necessary to carry out my responsibilities as an employee of the Company for and on behalf of the Company.
At all times, both during the period of time in which I perform services for and on behalf of the Company and after its termination, I will (A) keep in confidence and trust and will not disclose any Proprietary Information except to other Company employees, agents and representatives who have a legitimate need to know, or to third parties who are bound by written confidentiality agreements to the extent necessary to carry out my responsibilities as an employee of the Company and in a manner consistent with any such third party confidentiality agreements, and (B) use Proprietary Information only for the benefit of the Company.
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III. | Maintenance and Return of Company Materials |
All Company Materials are and will be and remain the sole property of the Company. I agree that during my engagement by the Company, I will not remove any Company Materials from the business premises of the Company or deliver any Company Materials to any person or entity outside the Company, except as I am required to do in connection with performing the duties of my engagement. I further agree that, immediately upon the termination of my engagement by me or by the Company for any reason, or during my engagement if so requested by the Company, I will return all Company Materials, apparatus, equipment and other physical property, or any reproduction of such property, excepting only (A) my personal copies of records relating to my compensation; (B) my personal copies of any materials previously distributed generally to stockholders of the Company; and (C) my copy of this Agreement.
IV. | Disclosure of INVENTIONS to the Company |
As used in this Agreement, “Inventions” mean any work of authorship, discovery, improvement, invention, design, graphic, source, HTML and other code, trade secret, technology, algorithms, computer program or software, audio, video or other files or content, idea, design, process, technique, formula or composition, know-how and data, whether or not patentable or copyrightable. I agree to maintain adequate and current written records and promptly disclose in writing to my immediate supervisor or as otherwise designated by the Company, all Inventions, made, discovered, conceived, reduced to practice or developed by me, either alone or jointly with others, during the term of my engagement.
I will also disclose to the Chief Executive Officer of the Company all Inventions made, discovered, conceived, reduced to practice, or developed by me, either alone or jointly with others, within six (6) months after the termination of my engagement with the Company that resulted, in whole or in part, from my prior engagement by the Company. Such disclosures will be received by the Company in confidence (to the extent such Inventions are not assigned to the Company pursuant to Section V below) and do not extend the assignment made in Section V below. I represent and warrant that I have not disclosed any of the Inventions covered by this Section IV to any person outside the Company except to the extent I was requested to do so by management personnel of the Company, and that I will not disclose any of the Inventions covered by this Section IV to any person outside the Company unless I am requested to do so by management personnel of the Company.
V. | OWNERSHIP OF INVENTIONS |
A. Generally
I agree that all Inventions that I have made, discovered, conceived, reduced to practice or developed during my engagement, and all Inventions that I make, discover, conceive, reduce to practice or develop (in whole or in part, either alone or jointly with others) during my engagement, will be the sole property of the Company to the maximum extent permitted by Section 2870 of the California Labor Code, a copy of which is attached hereto as Exhibit B, or any other similar law in any other applicable state of the United States, and I hereby assign such Inventions and all Rights therein to the Company. No assignment in this Agreement will extend to inventions, the assignment of which is prohibited by Labor Code Section 2870 or any other similar law in any other applicable state of the United States. The Company will be the sole owner of all Rights in connection therewith.
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B. Works Made for Hire
The Company will be the sole owner of all rights (including, without limitation, all Rights), title and interest in and to any and all Inventions. I further acknowledge and agree that such Inventions, including, without limitation, any computer programs, programming documentation, and other works of authorship, are “works made for hire” for purposes of the Company’s rights under copyright laws. To the extent that any Inventions may not be considered a “work made for hire”, I hereby assign to the Company such Inventions and all Rights therein, except those Inventions, if any, the assignment of which is prohibited under California Labor Code Section 2870 or any other similar law in any other applicable state of the United States.
C. License
If any Inventions assigned hereunder are based on, or incorporated, or are improvements or derivatives of, or cannot be reasonably made, used, reproduced and distributed without using or violating technology or rights owned or licensed by me and not assigned hereunder, I hereby grant the company a perpetual, worldwide, royalty-free, non-exclusive and sub-licensable right and license to exploit and exercise all such technology and rights in support of the Company’s exercise or exploitation of any assigned Inventions (including any modifications, improvements and derivatives thereof).
D. List of Inventions
I have set forth on Exhibit A to this Agreement a complete list of all existing Inventions to which I claim ownership as of the date of this Agreement and that I desire to specifically clarify are not subject to this Agreement, and I acknowledge and agree that such list is complete. If no such list is attached to this Agreement or if I have not added to Exhibit A any Inventions or other information responsive to Exhibit A, then I represent that I have no such Inventions at the time of signing this Agreement.
E. Cooperation
I agree to perform, during and after my engagement, all acts deemed necessary or desirable by the Company to permit and assist it in further evidencing and perfecting the assignments made to the Company under this Agreement and in obtaining, maintaining, defending and enforcing Rights in connection with such Inventions and improvements thereto in any and all countries. Such acts may include, but are not limited to, execution of documents and assistance or cooperation in legal proceedings. I hereby irrevocably designate and appoint the Company and its duly authorized officers and agents, as my agents and attorney-in-fact to act for and on my behalf and instead of me, to execute and file any documents, applications or related findings and to do all other lawfully permitted acts to further the purposes set forth above in this Subsection E, including, without limitation, the perfection of assignment and the prosecution and issuance of patents, patent applications, copyright applications and registrations, trademark applications and registrations or other rights in connection with such Inventions and improvements thereto with the same legal force and effect as if executed by me.
F. Assignment or Waiver of Moral Rights
Any assignment of copyright hereunder (and any ownership of a copyright as a work made for hire) includes all rights of paternity, integrity, disclosure and withdrawal and any other rights that may be known as or referred to as “moral rights” (collectively “Moral Rights”). To the extent such Moral Rights cannot be assigned under applicable law and to the extent the following is allowed by the laws in the various countries where Moral Rights exist, I hereby waive such Moral Rights and consent to any action of the Company that would violate such Moral Rights in the absence of such consent.
VI. | Non-competition DURING TERM OF ENGAGEMENT |
I agree that, during the term of my engagement with the Company, I will not engage in any engagement, employment, business, or activity that is in any way competitive with or similar to the business or proposed business of the Company, and I will not assist any other person, entity or organization in competing with the Company or in preparing to engage in competition with the business or proposed business of the Company. The provisions of this paragraph will apply both during normal working hours and at all other times including, without limitation, nights, weekends and vacation time, while I am employed with the Company.
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VII. | Non-solicitation of employees and consultants |
I agree that, during the term of my engagement and for one (1) year thereafter, I will not: (A) encourage any employee of or consultant to the Company, in each case who was employed by or in the service of the Company on the date of termination of my engagement, to leave or terminate such engagement or service with the Company, nor will I solicit any such person’s services; or (B) assist any other person or entity in any such encouragement or solicitation; or (C) hire or assist in hiring or retaining any such employee or consultant.
VIII. | Company Authorization for Publication |
Prior to my submitting, or disclosing for possible publication or general dissemination outside the Company (such as through public speaking engagements or literature), any material prepared by me that incorporates information that concerns the Company’s business or anticipated research, I agree to deliver a copy of such material to an officer of the Company for his or her review. Within twenty (20) days following such submission, the Company agrees to notify me in writing whether the Company believes such material contains any Proprietary Information or Inventions, and I agree to make such deletions and revisions as are reasonably requested by the Company to protect its Proprietary Information and Inventions. I further agree to obtain the written consent of the Company prior to any review of such material by persons outside the Company.
IX. | Former Employer Information |
I represent and warrant that my performance of the terms of this Agreement and as an employee of the Company does not breach and will not cause me to breach any agreement to keep in confidence proprietary information, knowledge or data acquired by me in confidence or in trust prior to my engagement by the Company, and I will not disclose to the Company or induce the Company to use any confidential or proprietary information or material belonging to any previous employer or any other third person. I further represent and warrant that I have not brought to the Company, and that I will not bring to the Company, any proprietary information, knowledge or data acquired by me from any previous employer or any other third person. I have not entered into and I agree I will not enter into any agreement, either written or oral, in conflict herewith or in conflict with my engagement with the Company. I further agree to conform to the rules and regulations of the Company.
X. | At-Will Engagement |
I agree and understand that engagement with the Company is “at-will,” meaning that it is not for any specified period of time and can be terminated by me or by the Company at any time, with or without advance notice, and for any or no particular reason or cause. I agree and understand that it also means that job duties, title and responsibility and reporting level, compensation and benefits, as well as the Company’s personnel policies and procedures, may be changed at any time at-will by the Company. I understand and agree that nothing about the fact or the content of this Agreement is intended to, nor should be construed to, alter the at-will nature of my engagement with the Company.
XI. | Severability |
If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provisions will be modified to the minimum extent necessary to comply with applicable law and the intent of the parties. If any provision of this Agreement, or application of it to any person, place, or circumstances, will be held by a court of competent jurisdiction to be invalid, unenforceable, or void, the remainder of this Agreement and such provisions as applied to other persons, places, and circumstances will remain in full force and effect.
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XII. | Authorization to Notify New Employer |
I hereby authorize the Company to notify my new employer about my rights and obligations under this Agreement following the termination of my engagement with the Company.
XIII. | Entire Agreement |
This Agreement sets forth the entire agreement and understanding between the Company and me relating to the subject matter herein and supersedes all prior discussions between us. I understand and acknowledge that (A) no other representation or inducement has been made to me, (B) I have relied on my own judgment and investigation in accepting my engagement with the Company, and (C) I have not relied on any representation or inducement made by any officer, employee or representative of the Company. No modification of or amendment to this Agreement nor any waiver of any rights under this Agreement will be effective unless in a writing signed by the Chief Executive Officer of the Company and me. I understand and agree that any subsequent change or changes in my duties, salary or compensation will not affect the validity or scope of this Agreement.
XIV. | Effective Date AND BINDING UPON SUCCESSORS |
This Agreement will be effective as of the day and year set forth below and will be binding upon me, my heirs, executors, legal representatives and administrators and will inure to the benefit of the Company, its subsidiaries, successors and assigns.
XV. | Governing Law |
Although I may work for the Company outside of California or the United States, I understand and agree that this Agreement will be interpreted and enforced in accordance with the laws of the State of California without regard to the conflict of laws provisions thereof. I hereby submit to the exclusive jurisdiction and venue of the federal and state courts located in Los Angeles, California.
XVI. | REMEDIES |
I recognize that nothing in this Agreement is intended to limit any remedy of the Company under the California Uniform Trade Secrets Act. I recognize that my violation of this Agreement could cause the Company irreparable harm, the amount of which may be extremely difficult to estimate, making any remedy at law or in damages inadequate. Thus, I agree that the Company will have the right to apply to any court of competent jurisdiction for an order restraining and/or enjoining any breach or threatened breach of this Agreement and for any other interim and/or pre-judgment relief the Company deems appropriate. This right will be in addition to any other rights or remedies available to the Company.
XVII. | APPLICATION OF THIS AGREEMENT |
I agree that my obligations set forth in this Agreement, along with the Agreement’s definitions of Proprietary Information, Company Materials, Rights and Inventions, will be equally applicable to any work performed by me for the Company prior to the execution of this Agreement and to any Proprietary Information, Company Materials, Rights or Inventions related to such work. Furthermore, I agree and acknowledge that this Agreement imposes on me obligations that by their nature will survive the termination of my engagement with the Company, regardless of the reasons for such termination and whether such termination is voluntary or involuntary on my part.
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I HAVE READ THIS AGREEMENT CAREFULLY AND I UNDERSTAND ITS TERMS. I ACCEPT THE OBLIGATIONS THAT IT IMPOSES UPON ME WITHOUT RESERVATION. NO PROMISES OR REPRESENTATIONS HAVE BEEN MADE TO ME TO INDUCE ME TO SIGN THIS AGREEMENT, EXCEPT TO THE EXTENT OTHERWISE SET FORTH IN THIS AGREEMENT. I SIGN THIS AGREEMENT VOLUNTARILY AND FREELY. I HAVE FULLY AND ACCURATELY DESCRIBED ON EXHIBIT A TO THIS AGREEMENT ANY PROPRIETARY INFORMATION THAT I DESIRE TO EXCLUDE FROM THIS AGREEMENT.
Dated: ___________ 2022 | ||
Independent Contractor Signature | ||
Independent Contractor Name (Please Print) |
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EXHIBIT A
1. | The following is a complete list of all Inventions relevant to the subject matter of my engagement with the Company that have been made, discovered, conceived, first reduced to practice or developed by me or jointly with others prior to my engagement by the Company that I desire to remove from the operation of the Proprietary Information and Inventions Agreement: |
____ | No Inventions. |
____ | See below: Any and all Inventions regarding: |
____ | Additional sheets attached. |
2. | I propose to bring to my engagement the following materials and documents of a former employer: |
____ | No materials or documents |
____ | See below: |
Date: ___________ 2022 | ||
Independent Contractor Signature |
EXHIBIT B
California Labor Code Section 2870
2870. (a) Any provision in an employment agreement that provides that an employee will assign, or offer to assign, any of his or her rights in an invention to his or her employer will not apply to an invention that the employee developed entirely on his or her own time without using the employer’s equipment, supplies, facilities, or trade secret information except for those inventions that either:
(1) Relate at the time of conception or reduction to practice of the invention to the employer’s business, or actual or demonstrably anticipated research or development of the employer; or
(2) Result from any work performed by the employee for the employer.
(b) To the extent a provision in an engagement agreement purports to require an employee to assign an invention otherwise excluded from being required to be assigned under subdivision (a), the provision is against the public policy of this state and is unenforceable.
Exhibit 10.3
RESTRICTED STOCK AWARD AGREEMENT
Name of Grantee: |
[__] |
|||
No. of Shares: |
[__] |
|||
Grant Date: |
[__] |
Spine Injury Solutions, Inc., a Delaware corporation (the “Company”) hereby grants a Restricted Stock Award (an “Award”) to the Grantee named above. Upon acceptance of this Award, the Grantee shall receive the number of shares of Common Stock, par value $0.001 per share (the “Stock”) of the Company specified above, subject to the restrictions and conditions set forth herein and in the Plan. The Company acknowledges the receipt from the Grantee of consideration with respect to the par value of the Stock in the form of cash, past or future services rendered to the Company by the Grantee or such other form of consideration as is acceptable to the Company.
1. Award. The shares of Restricted Stock awarded hereunder shall be issued and held by the Company’s transfer agent in book entry form, and the Grantee’s name shall be entered as the stockholder of record on the books of the Company. Thereupon, the Grantee shall have all the rights of a stockholder with respect to such shares, including voting and dividend rights, subject, however, to the restrictions and conditions specified in Paragraph 2 below. The Grantee shall (i) sign and deliver to the Company a copy of this Award and (ii) deliver to the Company a stock power endorsed in blank.
2. Restrictions and Conditions.
(a) Any book entries for the shares of Restricted Stock granted herein shall bear an appropriate legend, as determined by the Company in its sole discretion, to the effect that such shares are subject to restrictions as set forth herein.
(b) Shares of Restricted Stock granted herein may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of by the Grantee prior to vesting.
(c) If the Grantee’s services with the Company and its Subsidiaries is voluntarily terminated by Grantee for any reason or by the Company for “cause” prior to vesting of shares of Restricted Stock granted herein or in the event Grantee’s services with the Company and its Subsidiaries is voluntarily terminated by the Company without “cause” (as hereinafter defined) prior to vesting of shares of Restricted Stock granted herein, the Restricted Stock will vest with respect to a number of shares of Restricted Stock equal to the product of (i) a fraction the numerator of which is the number of completed months elapsed after the Grant Date to the date of termination of services with the Company, and the denominator of which is forty eight (48) and (ii) the number of shares of Restricted Stock set forth above that have not vested as provided for in Section 3 of this Award. As to any shares of Restricted Stock then remaining, all such shares of Restricted Stock shall be forfeited to the Company.
As used in this Award, termination for “Cause” shall mean a termination based upon: (i) a violation of any written rule or policy of the Company which the Grantee fails to correct within 10 days after the Grantee receives written notice from the Company of such violation; (ii) misconduct by the Grantee to the detriment of the Company; (iii) the Grantee’s conviction (by a court of competent jurisdiction, not subject to further appeal) of, or pleading guilty to, a felony; (iv) the Grantee’s continued and ongoing gross negligence in the performance of Grantee’s duties and responsibilities to the Company as prescribed from time to time by the Company; or (v) the Grantee’s failure to perform Grantee’s duties and responsibilities to the Company as required by the Company from time to time, in either case after written notice from the Company to the Grantee of the nature of such failure and the Grantee’s failure to cure such failure within ten (10) days following receipt of such notice.
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(d) Investment Representations.
(i) Investment Purpose. Grantee hereby represents that the Restricted Stock granted herein is being acquired for investment and not for sale or with a view to distribution thereof. Grantee acknowledges and agrees that any sale or distribution of shares of Restricted Stock which have vested may be made only pursuant to either (a) a registration statement on an appropriate form under the Securities Act of 1933, as amended (the “Securities Act”), which registration statement has become effective and is current with regard to the shares being sold, or (b) a specific exemption from the registration requirements of the Securities Act that is confirmed in a favorable written opinion of counsel, in form and substance satisfactory to counsel for the Company, prior to any such sale or distribution. Grantee hereby consents to such action as the Company deems necessary or appropriate from time to time to prevent a violation of, or to perfect an exemption from, the registration requirements of the Securities Act or to implement the provisions of this Award, including but not limited to placing restrictive legends on certificates evidencing shares of Restricted Stock (whether or not the Restrictions applicable thereto have lapsed) and delivering stop transfer instructions to the Company’s stock transfer agent.
(ii) Accredited Investor Status. Grantee represents and warrants that he is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D (an “Accredited Investor”).
(iii) Reliance on Exemptions. Grantee understands that the Restricted Stock is being awarded to Grantee in reliance upon specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of, and the Grantee’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Grantee set forth herein in order to determine the availability of such exemptions and the eligibility of the Grantee to acquire the Restricted Stock.
(iv) Information. Grantee and its advisors, if any, have been furnished with all materials relating to the business, finances and operations of the Company and materials relating to the award of the Restricted Stock which have been requested by the Grantee or Grantee’s advisor. Grantee and Grantee’s advisors, if any, have been afforded the opportunity to ask questions of the Company. Notwithstanding the foregoing, the Company has not disclosed to the Grantee any material nonpublic information and will not disclose such information unless such information is disclosed to the public prior to or promptly following such disclosure to the Grantee. Grantee understands that Grantee’s investment in the Restricted Stock involves a significant degree of risk.
(v) Governmental Review. Grantee understands that no United States federal or state agency or any other government or governmental agency has passed upon or made any recommendation or endorsement of the Restricted Stock.
(vi) Legends. Grantee understands that the shares of the Company’s common stock that comprise the Restricted Stock and, until such time as the Restricted Stock has been registered under the Securities Act, may be sold pursuant to Rule 144 or Regulation S, the Restricted Stock may bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of the certificates for such Restricted Stock):
“THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL MAY BE SELECTED BY THE SELLER), IN A FORM REASONABLY SATISFACTORY TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD OR ELIGIBLE TO BE SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.”
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3. Vesting of Restricted Stock. The restrictions and conditions in Paragraph 2 of this Award shall lapse on the Vesting Date or Dates specified in the following schedule so long as the Grantee remains an employee of the Company or a Subsidiary on such Dates. If a series of Vesting Dates is specified, then the restrictions and conditions in Paragraph 2 shall lapse only with respect to the number of shares of Restricted Stock specified as vested on such date.
Incremental Number of Shares Vested | Vesting Date | |||||
[__] ([__])% | [__] | |||||
[__] ([__])% | [__] | |||||
[__] ([__])% | [__] | |||||
[__] ([__])% | [__] | |||||
[__](100.00)% | Total |
Subsequent to such Vesting Date
or Dates, the shares of Stock on which all restrictions and conditions have lapsed shall no longer be deemed Restricted Stock. The Company
may at any time accelerate the vesting schedule specified in this Paragraph 3.
4. Dividends. Dividends on shares of Restricted Stock shall be paid currently to the Grantee.
5. Transferability. This Award is personal to the Grantee, is non-assignable and is not transferable in any manner, by operation of law or otherwise, other than by will or the laws of descent and distribution.
6. Tax Withholding. The Grantee shall, not later than the date as of which the receipt of this Award becomes a taxable event for Federal income tax purposes, pay to the Company or make arrangements satisfactory to the Company for payment of any Federal, state, and local taxes required by law to be withheld on account of such taxable event. Except in the case where an election is made pursuant to Paragraph 8 below, the Company shall have the authority to cause the required minimum tax withholding obligation to be satisfied, in whole or in part, by withholding from shares of Stock to be issued or released by the transfer agent a number of shares of Stock with an aggregate Fair Market Value that would satisfy the minimum withholding amount due.
7. Election Under Section 83(b). The Grantee and the Company hereby agree that the Grantee may, within 30 days following the Grant Date of this Award, file with the Internal Revenue Service and the Company an election under Section 83(b) of the Internal Revenue Code. In the event the Grantee makes such an election, he or she agrees to provide a copy of the election to the Company. The Grantee acknowledges that he or she is responsible for obtaining the advice of his or her tax advisors with regard to the Section 83(b) election and that he or she is relying solely on such advisors and not on any statements or representations of the Company or any of its agents with regard to such election.
8. No Obligation to Continue Services. Neither the Company nor any Subsidiary is obligated by or as a result of the Plan or this Award to continue the Grantee in services and neither the Plan nor this Award shall interfere in any way with the right of the Company or any Subsidiary to terminate the services of the Grantee at any time.
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9. Integration. This Award constitutes the entire agreement between the parties with respect to this Award and supersedes all prior agreements and discussions between the parties concerning such subject matter.
10. Data Privacy Consent. In order to administer the Plan and this Award and to implement or structure future equity grants, the Company, its subsidiaries and affiliates and certain agents thereof (together, the “Relevant Companies”) may process any and all personal or professional data, including but not limited to Social Security or other identification number, home address and telephone number, date of birth and other information that is necessary or desirable for the administration of the Plan and/or this Award (the “Relevant Information”). By entering into this Award, the Grantee (i) authorizes the Company to collect, process, register and transfer to the Relevant Companies all Relevant Information; (ii) waives any privacy rights the Grantee may have with respect to the Relevant Information; (iii) authorizes the Relevant Companies to store and transmit such information in electronic form; and (iv) authorizes the transfer of the Relevant Information to any jurisdiction in which the Relevant Companies consider appropriate. The Grantee shall have access to, and the right to change, the Relevant Information. Relevant Information will only be used in accordance with applicable law.
11. Notices. Notices hereunder shall be mailed or delivered to the Company at its principal place of business and shall be mailed or delivered to the Grantee at the address on file with the Company or, in either case, at such other address as one party may subsequently furnish to the other party in writing.
Spine Injury Solutions, Inc. | ||
|
||
By: |
| |
[__] |
The foregoing Award is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned. Electronic acceptance of this Award pursuant to the Company’s instructions to the Grantee (including through an online acceptance process) is acceptable.
Dated: | [__] | ||
Grantee’s Signature | |||
Grantee’s name and address: | |||
[__] | |||
[__] | |||
[__] | |||
Address |
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Exhibit 17.1
April 14, 2022
Spine Injury Solutions, Inc.
600 Anton Boulevard, Suite 1100
Costa Mesa, CA 92626
To the Board of Directors of Spine Injury Solutions, Inc.:
This letter confirms that I hereby resign from the Board of Directors of Spine Injury Solutions, Inc., a Delaware corporation (the “Company”) effective immediately. My resignation is not the result of any disagreement with the Company on any matter relating to its operation, policies (including accounting or financial policies) or practices.
Sincerely, | |
/s/ William F. Donovan, M.D. | |
William F. Donovan, M.D. |
Exhibit 17.2
April 14, 2022
Spine Injury Solutions, Inc.
600 Anton Boulevard, Suite 1100
Costa Mesa, CA 92626
To the Board of Directors of Spine Injury Solutions, Inc.:
This letter confirms that I hereby resign from the Board of Directors of Spine Injury Solutions, Inc., a Delaware corporation (the “Company”) effective immediately. My resignation is not the result of any disagreement with the Company on any matter relating to its operation, policies (including accounting or financial policies) or practices.
Sincerely, | |
/s/ Peter L. Dalrymple | |
Peter L. Dalrymple |