Document:

QKL STORES INC.

 

INDEPENDENT DIRECTOR AGREEMENT

 

This AMENDED AND RESTATED INDEPENDENT DIRECTOR
AGREEMENT (the “Agreement”) is made and entered into as of this 11 day of October, 2012, effective as of October 11,
2012 (the “Effective Date”), by and between QKL Stores Inc., a Delaware corporation whose shares are publicly
traded (the “Company”), and Jingyuan Gao, a citizen of the People’s Republic of China, with a permanent residence
at Suite 602, Unit 5, Building 2, Lu Gu Village, Shijingshan District, Beijing, China (the “Independent Director”).

 

WHEREAS, the Company desires to engage the
Independent Director, and the Independent Director desires to serve, as a non-employee director of the Company, subject to the
terms and conditions contained in this Agreement.

 

NOW, THEREFORE, in consideration of the mutual
promises and covenants contained herein, the receipt of which is hereby acknowledged, the Company and the Independent Director,
intending to be legally bound, hereby agree as follows:

 

1.DEFINITIONS.

 

(a)“Corporate Status”
describes the capacity of the Independent Director with respect to the Company and the services performed by the Independent Director
in that capacity.

 

(b)“Entity” shall
mean any corporation, partnership, limited liability company, joint venture, trust, foundation, association, organization or other
legal entity.

 

(c)“Proceeding” shall
mean any threatened, pending or completed claim, action, suit, arbitration, alternate dispute resolution process, investigation,
administrative hearing, appeal, or any other proceeding, whether civil, criminal, administrative or investigative, whether formal
or informal, including a proceeding initiated by the Independent Director pursuant to Section 12 of this Agreement to enforce the
Independent Director’s rights hereunder.

 

(d)“Expenses” shall
mean all reasonable fees, costs and expenses, approved by the Company in advance and reasonably incurred in connection with any
Proceeding, including, without limitation, attorneys’ fees, disbursements and retainers, fees and disbursements of expert
witnesses, private investigators, professional advisors (including, without limitation, accountants and investment bankers), court
costs, transcript costs, fees of experts, travel expenses, duplicating, printing and binding costs, telephone and fax transmission
charges, postage, delivery services, secretarial services, and other disbursements and expenses.

 

(e)“Liabilities”
shall mean judgments, damages, liabilities, losses, penalties, excise taxes, fines and amounts paid in settlement.

 

    	 

    	 

    
 

 

(f)“Parent” shall
mean any corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities ending with
the Company, if each of the corporations or entities, other than the Company, owns stock or other interests possessing 50% or more
of the economic interest or the total combined voting power of all classes of stock or other interests in one of the other corporations
or entities in the chain.

 

(g)“Subsidiary” shall
mean any corporation or other entity (other than the Company) in any unbroken chain of corporations or other entities beginning
with the Company, if each of the corporations or entities, other than the last corporation or entity in the unbroken chain, owns
stock or other interests possessing 50% or more of the economic interest or the total combined voting power of all classes of stock
or other interests in one of the other corporations or entities in the chain.

 

2.SERVICES OF INDEPENDENT DIRECTOR.
While this Agreement is in effect, the Independent Director shall perform duties as an independent director and/or a member of
the committees of the Board, be compensated for such and be reimbursed expenses in accordance with the Schedule A attached to this
Agreement, subject to the following.

 

(a)The Independent Director will
perform services as is consistent with Independent Director’s position with the Company, as required and authorized by the
By-Laws and Articles of Incorporation of the Company, and in accordance with high professional and ethical standards and all applicable
laws and rules and regulations pertaining to the Independent Director’s performance hereunder, including without limitation,
laws, rules and regulations relating to a public company.

 

(b)The Independent Director is
solely responsible for taxes arising out of any compensation paid by the Company to the Independent Director under this Agreement,
and the Independent Director understands that he/she will be issued a U.S. Treasury form 1099 for any compensation paid to him/her
by the Company. The Independent Director acknowledges and agrees that because he is not an employee of the Company the Company
will not withhold any amounts for taxes from any of his payments under the Agreement.

 

(c)The Company may offset any
and all monies payable to the Independent Director to the extent of any monies owing to the Company from the Independent Director.

 

(d)The rules and regulations
of the Company notified to the Independent Director, from time to time, apply to the Independent Director. Such rules and regulations
are subject to change by the Company in its sole discretion. Notwithstanding the foregoing, in the event of any conflict or inconsistency
between the terms and conditions of this Agreement and rules and regulations of the Company, the terms of this Agreement control.

 

3.REQUIREMENTS OF INDEPENDENT DIRECTOR.
During the term of the Independent Director’s services to the Company hereunder, Independent Director shall observe all applicable
laws and regulations relating to independent directors of a public company as promulgated from to time, and shall not: (1) be an
employee of the Company or any Parent or Subsidiary; (2) accept, directly or indirectly, any consulting, advisory, or other compensatory
fee from the Company other than as a director and/or a member of a committee of the Board; (3) be an affiliated person of the Company
or any Parent or Subsidiary, as the term “affiliate” is defined in 17 CFR 240.10A-3(e)(1), other than in his capacity
as a director and/or a member of a committee of the Board; (4) possess an interest in any transaction with the Company or any Parent
or Subsidiary, for which disclosure would be required pursuant to 17 CFR 229.404(a), other than in his capacity as a director and/or
a member of a committee of the Board committees; (5) be engaged in a business relationship with the Company or any Parent or Subsidiary,
for which disclosure would be required pursuant to 17 CFR 229.404(b), except that the required beneficial interest therein shall
be modified to be 5% hereby.

 

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4.REPORT OBLIGATION. While this
Agreement is in effect, the Independent Director shall immediately report to the Company in the event: (1) the Independent Director
knows or has reason to know or should have known that any of the requirements specified in Section 3 hereof is not satisfied or
is not going to be satisfied; and (2) the Independent Director simultaneously serves on an audit committee of any other public
company.

 

5.TERM AND TERMINATION. The term
of this Agreement and the Independent Director’s services hereunder shall be for three (3) years from the Effective Date,
unless terminated as provided for in this Section 5. This Agreement and the Independent Director’s services hereunder shall
terminate upon the earlier of the following:

 

(a)Removal of the Independent
Director as a director of the Company, upon proper Board or stockholder action in accordance with the By-Laws and Articles of Incorporation
of the Company and applicable law;

 

(b)Resignation of the Independent
Director as a director of the Company upon written notice to the Board of Directors of the Company; or

 

(c)Termination of this Agreement
by the Company, in the event any of the requirements specified in Section 3 hereof is not satisfied, as determined by the Company
in its sole discretion.

 

6.LIMITATION OF LIABILITY. In no
event shall the Independent Director be individually liable to the Company or its shareholders for any damages for breach of fiduciary
duty as an independent director of the Company, unless the Independent Director’s act or failure to act involves intentional
misconduct, fraud or a knowing violation of law.

 

7.AGREEMENT OF INDEMNITY. The Company
agrees to indemnify the Independent Director as follows:

 

(a)Subject to the exceptions
contained in Section 8(a) below, if the Independent Director was or is a party or is threatened to be made a party to any Proceeding
(other than an action by or in the right of the Company) by reason of the Independent Director’s Corporate Status, the Independent
Director shall be indemnified by the Company against all Expenses and Liabilities incurred or paid by the Independent Director
in connection with such Proceeding (referred to herein as “INDEMNIFIABLE EXPENSES” and “INDEMNIFIABLE LIABILITIES,”
respectively, and collectively as “INDEMNIFIABLE AMOUNTS”).

 

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(b)Subject to the exceptions
contained in Section 8(b) below, if the Independent Director was or is a party or is threatened to be made a party to any Proceeding
by or in the right of the Company, to procure a judgment in its favor by reason of the Independent Director’s Corporate Status,
the Independent Director shall be indemnified by the Company against all Indemnifiable Expenses.

 

(c)For purposes of this Agreement,
the Independent Director shall be deemed to have acted in good faith in conducting the Company’s affairs as an independent
director of the Company and/or a member of a committee of the Board of the Company, if the Independent Director: (i) exercised
or used the same degree of diligence, care, and skill as an ordinarily prudent man would have exercised or used under the circumstances
in the conduct of his own affairs; or (ii) took, or omitted to take, an action in reliance upon advise of counsels or other professional
advisors for the Company, or upon statements made or information furnished by other directors, officers or employees of the Company,
or upon a financial statement of the Company provided by a person in charge of its accounts or certified by a public accountant
or a firm of public accountants, which the Independent Director had reasonable grounds to believe to be true.

 

8.EXCEPTIONS TO INDEMNIFICATION.
Director shall be entitled to indemnification under Sections 7(a) and 7(b) above in all circumstances other than the following:

 

(a)If indemnification is requested
under Section 7(a) and it has been adjudicated finally by a court or arbitral body of competent jurisdiction that, in connection
with the subject of the Proceeding out of which the claim for indemnification has arisen, (i) the Independent Director failed to
act in good faith and in a manner the Independent Director reasonably believed to be in or not opposed to the best interests of
the Company, (ii) the Independent Director had reasonable cause to believe that the Independent Director’s conduct was unlawful,
or (iii) the Independent Director’s conduct constituted willful misconduct, fraud or knowing violation of law, then the Independent
Director shall not be entitled to payment of Indemnifiable Amounts hereunder.

 

(b)If indemnification is requested
under Section 7(b) and

 

(i)it has been adjudicated finally
by a court or arbitral body of competent jurisdiction that, in connection with the subject of the Proceeding out of which the claim
for indemnification has arisen, the Independent Director failed to act in good faith and in a manner the Independent Director reasonably
believed to be in or not opposed to the best interests of the Company, including without limitation, the breach of Section 4 hereof
by the Independent Director, the Independent Director shall not be entitled to payment of Indemnifiable Expenses hereunder; or

 

(ii)it has been adjudicated finally
by a court or arbitral body of competent jurisdiction that the Independent Director is liable to the Company with respect to any
claim, issue or matter involved in the Proceeding out of which the claim for indemnification has arisen, including, without limitation,
a claim that the Independent Director received an improper benefit or improperly took advantage of a corporate opportunity, the
Independent Director shall not be entitled to payment of Indemnifiable Expenses hereunder with respect to such claim, issue or
matter.

 

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9.WHOLLY OR PARTLY SUCCESSFUL.
Notwithstanding any other provision of this Agreement, and without limiting any such provision, to the extent that the Independent
Director is, by reason of the Independent Director’s Corporate Status, a party to and is successful, on the merits or otherwise,
in any Proceeding, the Independent Director shall be indemnified in connection therewith. If the Independent Director is not wholly
successful in such Proceeding but is successful, on the merits or otherwise, as to one or more but less than all claims, issues
or matters in such Proceeding, the Company shall indemnify the Independent Director against those Expenses reasonably incurred
by the Independent Director or on the Independent Director’s behalf in connection with each successfully resolved claim,
issue or matter. For purposes of this section, the termination of any claim, issue or matter in such a Proceeding by dismissal,
with or without prejudice, shall be deemed to be a successful result as to such claim, issue or matter.

 

10.ADVANCES AND INTERIM EXPENSES.
The Company may pay to the Independent Director all Indemnifiable Expenses incurred by the Independent Director in connection with
any Proceeding, including a Proceeding by or in the right of the Company, in advance of the final disposition of such Proceeding,
if the Independent Director furnishes the Company with a written undertaking, to the satisfaction of the Company, to repay the
amount of such Indemnifiable Expenses advanced to the Independent Director in the event it is finally determined by a court or
arbitral body of competent jurisdiction that the Independent Director is not entitled under this Agreement to indemnification with
respect to such Indemnifiable Expenses.

 

11.PROCEDURE FOR PAYMENT OF INDEMNIFIABLE
AMOUNTS. The Independent Director shall submit to the Company a written request specifying the Indemnifiable Amounts, for which
the Independent Director seeks payment under Section 7 hereof and the Proceeding of which has been previously notified to the Company
and approved by the Company for indemnification hereunder. At the request of the Company, the Independent Director shall furnish
such documentation and information as are reasonably available to the Independent Director and necessary to establish that the
Independent Director is entitled to indemnification hereunder. The Company shall pay such Indeminfiable Amounts within thirty (30)
days of receipt of all required documents.

 

12.REMEDIES OF INDEPENDENT DIRECTOR.

 

(a)RIGHT TO PETITION COURT. In
the event that the Independent Director makes a request for payment of Indemnifiable Amounts under Sections 7, 9-11 above, and
the Company fails to make such payment or advancement in a timely manner pursuant to the terms of this Agreement, the Independent
Director may petition the appropriate judicial authority to enforce the Company’s obligations under this Agreement.

 

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(b)BURDEN OF PROOF. In any judicial
proceeding brought under Section 12 (a) above, the Company shall have the burden of proving that the Independent Director is not
entitled to payment of Indemnifiable Amounts hereunder.

 

(c)EXPENSES. The Company agrees
to reimburse the Independent Director in full for any Expenses incurred by the Independent Director in connection with investigating,
preparing for, litigating, defending or settling any action brought by the Independent Director under Section 12 (a) above, or
in connection with any claim or counterclaim brought by the Company in connection therewith.

 

(d)VALIDITY OF AGREEMENT. The
Company shall be precluded from asserting in any Proceeding, including, without limitation, an action under Section 12 (a) above,
that the provisions of this Agreement are not valid, binding and enforceable or that there is insufficient consideration for this
Agreement and shall stipulate in court that the Company is bound by all the provisions of this Agreement.

 

(e)FAILURE TO ACT NOT A DEFENSE.
The failure of the Company (including its Board of Directors or any committee thereof, independent legal counsel, or stockholders)
to make a determination concerning the permissibility of the payment of Indemnifiable Amounts or the advancement of Indemnifiable
Expenses under this Agreement shall not be a defense in any action brought under Section 12 (a) above.

 

13.PROCEEDINGS AGAINST COMPANY.
Except as otherwise provided in this Agreement, the Independent Director shall not be entitled to payment of Indemnifiable Amounts
or advancement of Indemnifiable Expenses with respect to any Proceeding brought by the Independent Director against the Company,
any Entity which it controls, any director or officer thereof, or any third party, unless the Company has consented to the initiation
of such Proceeding. This section shall not apply to counterclaims or affirmative defenses asserted by the Independent Director
in an action brought against the Independent Director.

 

14.INSURANCE. The Company may,
at its discretion, obtain and maintain a policy or policies of director and officer liability insurance, in an amount not less
than $3,000,000, of which the Independent Director will be named as an insured, providing the Independent Director with coverage
for Indemnifiable Amounts and/or Indemnifiable Expenses in accordance with said insurance policy or policies (“D&O INSURANCE”);
provided that:

 

(a)The Independent Director agrees
that, while the Company has valid and effective D&O Insurance, and except as provided in (c) of this section, Sections 7-13
of this Agreement shall not apply, and the Company’s indemnification obligation to the Independent Director under this Agreement
shall be deemed fulfilled by virtue of purchasing and maintaining such insurance policy or policies, in accordance with the terms
and conditions thereof and subject to exclusions stated thereon. The Independent Director agrees that the Company shall have no
obligation to challenge the decisions made by the insurance carrier(s) (“INSURANCE CARRIER”) relating to any claims
made under such insurance policy or policies;

 

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(b)The Independent Director agrees
that the Company’s indemnification obligation to the Independent Director under (a) of this section shall be deemed discharged
and terminated, in the event the Insurance Carrier refused payment for any Proceedings against the Independent Director due to
the acts or omissions of the Independent Director;

 

(c)While the D&O Insurance
is valid and effective, the Company agrees that it shall indemnify the Independent Director for the Indemnifiable Amounts and Indemnifiable
Expenses, to the extent that any Proceedings are coverable by D&O Insurance, but in excess of the policy amount, in accordance
with Sections 7-13 of this Agreement; and

 

(d)While the D&O Insurance
is valid and effective, this Section 14 states the entire and exclusive remedy of the Independent Director with respect to the
indemnification obligation of the Company to the Independent Director under this Agreement.

 

15.SUBROGATION. In the event of
any payment of Indemnifiable Amounts under this Agreement or the D&O Insurance, the Company or its Insurance Carrier, as the
case may be, shall be subrogated to the extent of such payment to all of the rights of contribution or recovery of the Independent
Director against other persons, and the Independent Director shall take, at the request of the Company, all reasonable action necessary
to secure such rights, including the execution of such documents as are necessary to enable the Company to bring suit to enforce
such rights.

 

16.AUTHORITY. Each party has all
necessary power and authority to enter into, and be bound by the terms of, this Agreement, and the execution, delivery and performance
of the undertakings contemplated by this Agreement have been duly authorized by each party hereto:

 

17.SUCCESSORS AND ASSIGNMENT. This
Agreement shall (a) be binding upon and inure to the benefit of all successors and assigns of the Company (including any transferee
of all or a substantial portion of the business, stock and/or assets of the Company and any direct or indirect successor by merger
or consolidation or otherwise by operation of law), and (b) be binding on and shall inure to the benefit of the heirs, personal
representatives, executors and administrators of the Independent Director. The Independent Director has no power to assign this
Agreement or any rights and obligations hereunder.

 

18.CHANGE IN LAW. To the extent
that a change in applicable law (whether by statute or judicial decision) shall mandate broader or narrower indemnification than
is provided hereunder, the Independent Director shall be subject to such broader or narrower indemnification and this Agreement
shall be deemed to be amended to such extent.

 

19.SEVERABILITY. Whenever possible,
each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if
any provision of this Agreement, or any clause thereof, shall be determined by a court of competent jurisdiction to be illegal,
invalid or unenforceable, in whole or in part, such provision or clause shall be limited or modified in its application to the
minimum extent necessary to make such provision or clause valid, legal and enforceable, and the remaining provisions and clauses
of this Agreement shall remain fully enforceable and binding on the parties.

 

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20.MODIFICATIONS AND WAIVER. Except
as provided in Section 18 hereof with respect to changes in applicable law which broaden or narrow the right of the Independent
Director to be indemnified by the Company, no supplement, modification or amendment of this Agreement shall be binding unless executed
in writing by each of the parties hereto. No delay in exercise or non-exercise by the Company of any right under this Agreement
shall operate as a current or future waiver by it as to its same or different rights under this Agreement or otherwise.

 

21.NOTICES. All notices, requests,
demands and other communications hereunder shall be in writing and shall be deemed to have been duly given (a) when delivered by
hand, (b) when transmitted by facsimile and receipt is acknowledged, or (c) if mailed by certified or registered mail with postage
prepaid, on the third business day after the date en which it is so mailed:

 

If to Independent Director, to: Jingyuan
Gao, Suite 602, Unit 5, Building 2, Lu Gu Village, Shijingshan District, Beijing, China.

 

If to the Company, to: Zhuangyi Wang,
CEO, QKL Stores Inc., 44 Jingqi Street, Dongfeng Xincun, Sartu District, Daqing, Heilongjiang Province, China 163311, or to such
other address as may have been furnished in the same manner by any party to the others.

 

22.GOVERNING LAW. This Agreement
shall be governed by and construed and enforced under the laws of the State of New York.

 

23.CONSENT TO JURISDICTION. The
parties hereby consent to the jurisdiction of the courts having jurisdiction over matters arising in New York County, New York
for any proceeding arising out of or relating to this Agreement. The parties agree that in any such proceeding, each party shall
waive, if applicable, inconvenience of forum and right to a jury.

 

24.AGREEMENT GOVERNS. This Agreement
is to be deemed consistent wherever possible with relevant provisions of the By-Laws and Articles of Incorporation of the Company;
however, in the event of a conflict between this Agreement and such provisions, the provisions of this Agreement shall control.

 

25.INDEPENDENT CONTRACTOR. The
parties understand, acknowledge and agree that the Independent Director’s relationship with the Company is that of an independent
contractor and nothing in this Agreement is intended to or should be construed to create a relationship other than that of independent
contractor. Nothing in this Agreement shall be construed as a contract of employment/engagement between the Independent Director
and the Company or as a commitment on the part of the Company to retain the Independent Director in any capacity, for any period
of time or under any specific terms or conditions, or to continue the Independent Director’s service to the Company beyond
any period.

 

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26.ARBITRATION. Any dispute, controversy
or claim arising out of or relating to this Agreement or the breach thereof, shall be settled by arbitration, before one arbitrator
in accordance with the rules of the American Arbitration Association then in effect and judgment upon the award rendered by the
arbitrator may be entered in any court having jurisdiction. The arbitrator will be selected, by the parties, from a panel of attorney
arbitrators. The parties agree that any arbitration shall be held in New York, New York. The language of the arbitration shall
be in English. The arbitrator will have no authority to make any relief, finding or award that does not conform to the terms and
conditions of this Agreement. Each party shall bear its own attorneys’ or expert fees and any and all other party specific
costs. Either party, before or during any arbitration, may apply to a court having jurisdiction for a restraining order or injunction
where such relief is necessary to protect its interests. Prior to initiation of arbitration, the aggrieved party will give the
other party written notice, in accordance with this Agreement, describing the claim as to which it intends to initiate arbitration.

 

27.ENTIRE AGREEMENT. This Agreement
constitutes the entire agreement between the Company and the Independent Director with respect to the subject matter hereof, and
supersedes all prior understandings and agreements with respect to such subject matter.

 

IN WITNESS WHEREOF, the parties hereto have
executed this Independent Director Indemnification Agreement as of the day and year first above written.

  

	 	 
	AGREED	AGREED
	 	 
	QKL Stores Inc.	Independent Director
	 	 
	 	 
	 	 
	/s/Zhuangyi Wang_____________________	/s/Jingyuan Gao______________________
	Name:  Zhuangyi Wang	Name: Jingyuan Gao
	Title:   Chairman and CEO	 
	 	 

 

 

 

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SCHEDULE A

 

IPOSITION:

 

INDEPENDENT DIRECTOR.

 

II.COMPENSATION:

 

FEES. For all services rendered by the Independent
Director pursuant to this Agreement, both during and outside of normal working hours, including but not limited to, attending all
required meetings of the Board or applicable committees thereof, executive sessions of the independent directors, reviewing filing
reports and other corporate documents as requested by the Company, providing comments and opinions as to business matters as requested
by the Company, the Company agrees to pay to the Independent Director a fee in cash of Fifteen Thousand Dollars ($15,000) per year
during the Term (the “Base Fee”). The Base Fee shall be paid in cash to the Independent Director on a quarterly basis
in equal installments on the last day of each calendar quarter. 

 

EXPENSES. During the term of the Independent
Director’s service as a director of the Company, the Company shall promptly reimburse the Independent Director for all expenses
approved by the Company in advance and incurred by him/her in connection with attending (a) all meetings of the Board or applicable
committees thereof, (b) executive sessions of the independent directors, and (c) stockholder meetings, as a director or a member
of any committee of the Board , which are approved by the Company in advance. In addition, the Independent Director shall rely
on the Company to arrange all hotel accommodations in connection with any such meetings the Independent Director must attend. The
amount of such expenses eligible for reimbursement by the Company during a calendar year shall not affect such expenses eligible
for reimbursement by the Company in any other calendar year, and the reimbursement of any such eligible expenses shall be made
on or before the last day of the calendar year next following the calendar year in which the expense was incurred.

 

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NO OTHER BENEFITS OR COMPENSATION. The Independent
Director acknowledges and agrees that he/she is not granted and is not entitled to any other benefits or compensation from the
Company for the services provided under this Agreement except expressly provided for in this Schedule A.

 

 

	 	 
	AGREED	AGREED
	 	 
	QKL Stores Inc.	Independent Director
	 	 
	 	 
	 	 
	/s/Zhuangyi Wang                         	/s/Jingyuan Gao                   
	Name:  Zhuangyi Wang	Name:  Jingyuan Gao
	Title:   Chairman and CEO	 
	 	 

 

 

    	11Exhibit 10.1

	EXECUTION COPY

 

DISTRIBUTION AGREEMENT

 

THIS AGREEMENT is entered and executed
as of October 9th, 2012 (“Effective Date”), by and between TranS1 Inc., a Delaware corporation with
its principal place of business at 301 Government Center Drive, Wilmington, NC 28403 (“TRANS1”) and Jiade Sunshine,
a limited liability incorporated in the People’s Republic of China with its principal place of business at Room 315, West
3 Building, No.83 Fuxing Road, Haidian District Beijing China, Post code:100039 (“Distributor”).

 

WHEREAS, TRANS1
develops, manufactures and markets devices for the treatment of spine disorders;

 

WHEREAS, Distributor
provides sales, marketing and distribution services to third parties; and spine surgeons in the defined territory and or country.

 

WHEREAS, TRANS1
wishes to appoint Distributor as its sole and exclusive distributor for the marketing and promotion of the Products in the
Territory in the Field, provided, however, that TRANS1 reserves the right to sell the Products directly in the Territory
outside of the Field.

 

NOW, THEREFORE,
the parties hereto agree as follows:

 

1.          Definitions.

 

(a)          “Contract
Year” means the period beginning on the Effective Date and ending October 31, 2013, and each twelve (12) consecutive month
period thereafter.

 

(b)          “Field”
shall mean medical devices intended to access or treat degenerative disc disease and motion preservation of the lumbar spine as
applicable.

 

(c)          “Marketing
Plan” shall refer to the marketing plan for the Products developed by Distributor with input from TRANS1.

 

(d)          “Products”
shall mean all of TRANS1’s current and future AxiaLIF brand products, including all of its delivery devices and related
access devices and procedures, procedure-specific and implantable devices in the Field; the current products approved for sale
in the Territory are listed on Exhibit A, as amended from time to time by the parties.

 

(e)          “Promotional
Materials” shall have the meaning set forth in Section 3(e)(iii).

 

(f)          “Services”
shall mean the inventory management and administrative services that Distributor shall provide for TRANS1 under this
Agreement.

 

(g)          “Territory”
shall mean the geographic area set forth in Exhibit B as may be amended from time to time by mutual agreement of the parties.

 

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	EXECUTION COPY

 

2.          Appointment
and Quarterly Reviews.

 

(a)          General.
Subject to this Agreement, TRANS1 hereby appoints Distributor, and Distributor hereby accepts its appointment
as TRANS1’s sole and exclusive (subject to Section 4(a)) distributor to promote, market and sell the Products in the Territory
in the Field, provided, however, that TRANS1 reserves the right to sell the Products directly in the Territory outside of
the Field.

 

(b)          Quarterly
Review. On a quarterly basis, senior level sales or marketing representatives from TRANS1 and Distributor will
meet to review sales progress, Distributor performance, ASP (average selling price) versus target prices, product performance
issues, quality issues and to resolve in good faith outstanding strategy and tactical issues that arise during the Term, and to
review all aspects of marketing the Products. This will typically occur as part of Distributor’s quarterly reviews.

 

3.          Distributor’s
Obligations.

 

(a)          General.
Distributor will use commercial best efforts to (i) promote, market and sell the Products within the Territory; (ii) manage
distribution of the Products within the Territory and (iii) perform the Services in a good and workmanlike manner. Upon receipt
of prior written consent from TRANS1, Distributor may subcontract the performance of any of its obligations under
this Agreement to any third party distributor.

 

(b)          Orders.

 

(i)          Initial
Order. Within thirty (30) days of the Effective Date, Distributor shall submit an initial purchase order for [***] Products
and [***] Products (the “Initial Order”). TRANS1 shall deliver the quantity of Product set forth in Exhibit
G against the Initial Order in accordance with Section 4(b) on or before December 31st, 2012. The balance of the
quantity of Product in the Initial Order shall be delivered pursuant to the Quarterly Forecasts submitted by Distributor
pursuant to Section 3(e)(iv). TRANS1 may terminate this Agreement upon written notice and with immediate effect (without
Distributor having the opportunity to cure) in the event Distributor fails to submit the Initial Order in accordance
with this Section 3(b)(i).

 

(ii)         Annual
Orders. On or before each October 31 of each Contract Year, Distributor shall submit a purchase order for the quantity
of Product it wishes to purchase in the following Contract Year (each, an “Annual Order”); provided, however, that
in no event shall an Annual Order be for less than the following:

 

(A)         Distributor
shall order on or before October 31, 2013 no less than [***] Products, and on or before each October 31 during the remainder of
the term of this Agreement, Distributor shall order no less than [***]Products.

 

[***] Confidential treatment requested
pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been
filed separately with the Commission.

 

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	EXECUTION COPY

 

(B)         Distributor
shall order on or before each of October 31, 2012 and 2013 no less than [***] Products, and on or before each of October 31during
the remainder of the term of this Agreement, Distributor shall order no less than [***] Products.

 

(C)         Each
Annual Order shall provide for delivery of at least [***]% of the [***] Products and at least [***]% of the [***] Products on or
before December 31 of that Contract Year.

 

(iii)        TRANS1
shall deliver an initial quantity of Product designated in the applicable Annual Order in accordance with Section 4(b), and shall
deliver the balance of the quantity of Product in the Annual Order shall be delivered pursuant to the Quarterly Forecasts submitted
by Distributor pursuant to Section 3(e)(iv). TRANS1 may terminate this Agreement upon written notice and with immediate
effect (without Distributor having the opportunity to cure) in the event Distributor fails to submit an Annual Order
in accordance with this Section 3(b)(ii).

 

(iv)       Additional
Orders. Distributor may submit additional orders for Products during a Contract Year (each, an “Additional Order”).
TRANS1 shall deliver Product ordered pursuant to an Additional Order in accordance with Section 4(b). For the avoidance
of doubt, TRANS1 shall not be obligated to delivery of Product ordered pursuant to an Additional Order, however, if TRANSI
decides not to deliver the Additional Orders, it shall timely notify Distributor pursuant to Section5a(ii).

 

(v)        Shortfall
in Orders. If Distributor does not request delivery of all units of Product in the Initial Order or in any Annual Order by
the end of the applicable Contract Year (e.g., by October 31, 2013 in the case of the first Contract Year), then so long as Distributor
has timely paid for the order in accordance with Section 6, Distributor may request that such pre-paid units be delivered on any
date during the immediately following Contract Year and TranS1 shall ship such units in accordance with Section 4(b). Such units
shall not be credited towards or otherwise affect Distributor’s obligation to purchase [***] Products for the Contract Year
in which they are delivered. If Distributor does not make a timely request for delivery of such units by the end of the Contract
Year immediately following the Contract Year for which they were originally ordered, TranS1 shall have no further obligation to
ship such units and shall be entitled to retain the full amount invoiced for such units.

 

[***] Confidential treatment requested
pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been
filed separately with the Commission.

 

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(c)          Facilities
and Staff. Distributor will acquire and maintain the facilities and staff that it in its sole discretion deems appropriate
to effectively market and sell the Products throughout the Territory.

 

(d)          Training.
Distributor will provide, with the participation of TRANS1, each Distributor employee with the training necessary,
on two agreed-upon occasions within the ninety (90) day period from the Effective Date, for Distributor to market the Products
within the Territory. In addition, Distributor shall provide surgeon training as required by TRANS1 in the Territory
and in the Field. Distributor will be responsible for all costs of the surgeon training, product and lab expenses, less
the TRANS1 employee support and or approved US surgeon proctor that is agreed upon in writing prior to the scheduled event.
Further, TRANS1 will provide access to specific soft tissue training models at a predetermined transfer price of manufacturing
with quantity and forecasts to be provided by Distributor. TRANS1 shall not promote, market and/sell Products
directly or indirectly to the surgeons trained by Distributor or to any hospitals or institutes with which such surgeons
work or are associated.

 

(i)          SURGEON
TRAINING Distributor agrees that each customer (surgeon) will be trained and certified as trained by TRANS1
prior to any surgical procedure using Product. Failure to do so will result in immediate termination of this contract.

 

(e)          Inventory
Management and Lot Traceability. Distributor agrees to maintain records that provide for lot and serial number traceability
of Products to the end user. Distributor is required to complete a Case Inventory Form (CIF), as provided in in Exhibit
F, for EVERY case completed in Territory. Failure to do so will result in immediate termination of this contract.

 

(i)          Marketing
and Promotional Activities. Distributor will market the Products within the Territory according to the then current
Marketing Plan. A marketing plan template is provided in Exhibit E. Distributor will provide TRANS1 with an
annually completed Marketing Plan by January 31st of each year. Distributor will provide TRANS1 with notice
of upcoming trade shows and similar events within the Territory on a quarterly basis.

 

(ii)         Marketing
Support. Marketing of the Products shall be the responsibility of Distributor. Distributor shall provide marketing
support to help effectively market the Products within the Territory, including without limitation, marketing studies, marketing
communications and attendance at trade shows. Distributor shall provide a Product Manager, who is dedicated to TRANS1
Products and commercialization activities in the Territory.

 

(iii)        Promotional
Materials. Distributor will use the brochures and other sales and promotional literature describing the Products that
TRANS1 periodically approves via the TRANS1 quality systems or provides to Distributor (the “Promotional
Materials”). Distributor will translate or adapt the Promotional Materials for use within the Territory. Distributor
will provide TranS1 with copy of translated Promotion Material for review prior to distribution in Territory.  Distributor
hereby assigns to TRANS1 the copyrights that Distributor may acquire or possess in translations and adaptations of
the Promotional Materials.

 

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(iv)        Forecasts.
Distributor will provide quarterly total demand forecasts for the Territory to TRANS1 for demand planning, on a rolling
twelve-month basis, and no later than the beginning of each calendar quarter a rolling four (4) calendar quarter total demand forecast
for the Territory to TRANS1 (each, a “Quarterly Forecast”). The quarterly forecast shall be binding on Distributor.
Distributor will also provide quarterly to TRANS1 a twelve month rolling revenue forecast for the Territory. These
forecasts do not alter the agreed upon minimum sales requirements.

 

(v)         Prices.
Distributor will quote to customers the prices and terms for the Products based upon the pricing levels and discount levels
established by Distributor in its sole discretion, provided, however, that Distributor shall not quote or sell at
any price below the price floor established by TRANS1 without TRANS1’s prior written consent.

 

(vi)        Records
and Reports. Distributor will keep accurate records of its activities under this Agreement, including a record of (i)
each sale and the price of such sale; and (ii) each invoice issued to and payment received from a customer. Within 15 days of the
end of each one-month period of this Agreement, Distributor will provide TRANS1 with a report showing the sales made
of the Products and the actual sales price for such Products.

 

(vii)       Product
Complaints. Distributor will promptly provide notice to TRANS1 of the occurrence of any of the following within
the Territory: (a) receipt of any Product quality claims or complaints or other written legal claims or complaints, (b) receipt
of any medical claims, complaints or problems, or (c) receipt of any written communication from any applicable regulatory agency
pertaining to the Products. FAILURE TO MEET THIS OBLIGATION AND COMPLY WITH ANY REGULATORY AUTHORITIES AND IN COUNTRY REPORTING
REQUIREMENTS CAN RESULT IN IMMEDIATE TERMINATION FOR CAUSE AND NO CURE PERIOD WILL BE ALLOWED.

 

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4.          TRANS1’s
Obligations.

 

(a)          Distribution
Management Phase-In. TRANS1 has disclosed to Distributor all distribution agreements between TRANS1 and
distributors within the Territory as of the date hereof. The parties agree to cooperate in good faith to arrange to have an identified
third party with limited distribution rights to Products in southern China become a sub-distributor (i.e., such third party would
purchase Products from Distributor for resale in a portion of the Territory as agreed between Distributor and such third party).
Promptly following joint written notice from Distributor and the third party that they have reached agreement regarding the sub-distribution
arrangement, TRANS1 shall cease shipments of Products for use in the Field in the Territory to the third party. The third party
may continue to sell Products purchased or ordered prior to the delivery of such joint notice to TRANS1. Subject to the foregoing,
TRANS1 confirms that Distributor is the sole distributor in the Territory.

 

(b)          Orders.
TRANS1 will use its commercially reasonable efforts to promptly fill all orders received from Distributor and accepted
by TRANS1 in accordance with Section 5.

 

(c)          Provision
of Sample Units. If requested by Distributor and approved in advance by TRANS1 (such approval not to be unreasonably
withheld), TRANS1 shall supply Distributor with a reasonable number of sample Products annually at TRANS1’s
predetermined transfer price of such non-sterile Products for demonstration and marketing purposes.

 

(d)          Promotional
Materials. TRANS1 will provide to Distributor out of its existing stock the quantity and quality of Promotional
Materials in English as the parties deem reasonably sufficient for Distributor and its distributors to promote, solicit
and obtain orders for the Products within the Territory in accordance with the Marketing Plan.

 

(e)          Training.
TRANS1 will provide, with the participation of Distributor, each Distributor employee with the training necessary,
[***] within the ninety (90) day period from the Effective Date, for Distributor to market the Products within the Territory.
In addition TRANS1 shall provide additional training as requested by Distributor for any future Product introductions
and/or modifications in the Territory in the Field. TRANS1 will provide access to specific soft tissue training models at
a predetermined transfer price with forecasts to be provided by Distributor. FAILURE TO TRAIN DISTRIBUTOR EMPLOYEES WITHIN
THE 90 DAY PERIOD WILL RESULT IN TERMINATION FOR CAUSE AND NO CURE PERIOD WILL BE ALLOWED.

 

(f)          Product
Changes. Except in the case of a Product recall or other emergency, TRANS1 will provide Distributor a minimum
of 30 day notice of changes contemplated in Products or packaging, or advertising, sales or Promotional Materials relating to the
Products or any significant development planned and improvements that may affect the marketing of the Products.

 

[***] Confidential treatment requested
pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been
filed separately with the Commission.

 

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(g)          Support.
TRANS1 will provide Distributor, in the form and when reasonably required by Distributor, access to TRANS1’s
technical and marketing and sales personnel for advice, consultation and assistance in marketing, negotiation of sales of, and
providing support for the Products within the Territory. TRANS1 may provide such support by telephone or other forms of
communication or by on-site visits, as the parties deem appropriate. TRANS1 will provide executive sales support as deemed
necessary by TRANS1.

 

(h)          Leads.
TRANS1 may generate and will refer to Distributor all leads for potential customers of the Products within the Territory
in the Field. To refer a lead, TRANS1 will complete a Lead Referral form and remit it to Distributor. Distributor
will follow-up on such leads according to the Marketing Plan.

 

(i)           Sales
Strategy. When and if requested by Distributor, TRANS1 will participate in quarterly sales strategy sessions
with Distributor management.

 

(j)           Regulatory
Approvals, Compliance with Laws. TRANS1 shall be solely responsible to obtain the registrations, approvals or licenses
that may be required to sell in the Territory. TRANS1 will be solely responsible for all regulatory matters (other than
those required to import and sell the Products within the Territory) including, securing any and all regulatory approvals, performing
all clinical trials, and applying to register the TRANS1 trademarks, patents or other intellectual property within the Territory.
Distributor will cooperate with TRANS1 to obtain necessary regulatory approval and comply with all applicable local
laws and regulations. TRANS1 shall use commercially reasonable efforts to complete the registrations of the Products in
the Territory as soon as possible in order to assure that Distributor will be able to commercialize the Products as expected.

 

(k)          Product
Recalls. In the event of a recall ordered or requested by any government agency, a court or by either party of any Product
within the Territory, Distributor and TRANS1 will discuss actions that will be taken with respect to customers and
government authorities in implementing such recall, including in locating and retrieving recalled Products from customers. The
parties will agree on such actions prior to implementation of any Product recall. In the event the parties cannot agree on such
actions, TRANS1 will be solely responsible for the implementation of such Product recall. Any such recall of Products within
the Territory, whether required or voluntary, will be at TRANS1’s cost and expense, except to the extent the recall
was caused by a breach of this Agreement by Distributor or the negligence or willful misconduct of Distributor, its
employees, agents or contractors. In the event of a Product Recall, the parties to this Agreement agree to a proportionate reduction
in the Annual Order for the applicable period.

 

(l)           Product
Complaints. Each party shall, within five (5) business days of occurrence, provide notice to the other party of the occurrence
of any of the following: (a) receipt of any Product quality claims or complaints or other written legal claims or complaints, (b)
receipt of any medical claims, complaints or problems, or (c) receipt of any written communication from any applicable regulatory
agency pertaining to the Products. TRANS1 shall be responsible for handling of the complaint.

 

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(m)         Consulting
Agreements. TRANS1 shall be solely responsible for any consulting agreements it has in place, and payments under those
agreements, and the termination of any agreements that conflict with the rights and responsibilities being granted to Distributor
in this Agreement.

 

5.          Orders,
Shipment and Acceptance.

 

(a)          Standard
Purchase Orders.

 

(i)          All
orders of Products shall be on Distributor’s then current standard purchase order. The provisions of this Agreement
shall prevail over any inconsistent statements or additional statements or provisions, rights and obligations contained in any
document related to this Agreement passing between the parties hereto including, but not limited to, any purchase order, acknowledgement,
confirmation or notice.

 

(ii)         Orders
shall be submitted by mail, email or facsimile, or by other means agreed upon by the parties. All orders and modifications to orders
are subject to acceptance by TRANS1; provided, however, that TRANS1 shall accept all purchase orders by Distributor
for the Products so long as such orders are in accordance with the most recent rolling forecast in effect that have been accepted
by TRANS1. TRANS1 shall use commercially reasonable efforts to fill all orders by Distributor for the Products
hereunder. If TRANS1 believes that it will not be able to satisfy Distributor’s order for the Products, TRANS1
shall promptly, and in no event later than five (5) business days after receipt thereof, notify Distributor, specifying
the reasons for the delay and the expected duration. TRANS1 shall use its commercially reasonable efforts to deliver all
orders that are accepted in accordance with the delivery date set forth in the applicable purchase order so long as such delivery
date is in accordance with the most recent rolling forecast in effect.

 

(b)          Terms
of Shipment, Taxes and Duties. TRANS1 shall arrange for shipment and invoicing to Distributor of the Products
ordered by Distributor, via common carrier selected by Distributor, EXW (Incoterms 2010) TRANS1’s manufacturing
facility and shipped to Distributor’s facility for all deliveries. TRANS1’s title and risk of loss to
the Products shall pass to Distributor upon delivery of the Products to the carrier. Distributor shall pay all freight,
insurance, duties and other shipping expenses.

 

(c)          Product
Specifications. All Products shall conform, in all material respects, to the written specifications for the Product in effect
as of the date of delivery (“Product Specifications”) and be ready for end-user sale, including all packaging, labeling,
instructions-for-use and sterilization.

 

(d)          Return
of Product. Within five (5) days of receiving the Products, Distributor may reject any of such Products which in its
good faith determination fail to meet the applicable Product Specifications in all material respects or which do not meet the product
warranties contained herein by sending TRANS1 notice of the lot numbers of rejected Products, together with a description
of the specific reason for rejection. Distributor shall, within ten (10) days of notice, return to TRANS1, at TRANS1’s
expense, any such rejected Products, which may be replaced by TRANS1 within thirty (30) days of receipt. Distributor
shall not be required to pay TRANS1 for any Products which have been properly rejected in accordance with this Section 5.1(d),
and which have not been replaced by TRANS1. Any Product not rejected by Distributor within the thirty (30) day period
shall be deemed to have been accepted, provided that the warranties provided in Section 9 shall survive the acceptance of the Product
by Distributor for a period of [***] from delivery to Distributor; provided, however, that Distributor’s
sole remedy, and TRANS1’s sole obligation with respect to a breach of such warranty shall be to repair or replace
such Product. TRANS1 shall perform a review of the Product returned by Distributor and shall use commercially reasonably
efforts to implement necessary adjustments to the Product, if any are required, at the end of the next quarter. If TRANS1
determines the Product is within specifications and not defective, the Distributor will be responsible for the costs of
the return and reshipment of said Product.

 

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6.          Price
and Payment Terms.

 

(a)          Transfer
Price.

 

(i)          Distributor
shall pay TRANS1 the Transfer Price for the Products delivered to and not rejected by Distributor in accordance with
the terms of this Agreement. The Transfer Price for each applicable Product shall be the prices set forth opposite each product
listed on Exhibit C hereto; and provided that TRANS1 shall reserve the right to adjust the Transfer Price
for the Products at the discretion of the TRANS1 management team and or Board of Directors by delivery to Distributor
a revised Exhibit C with 90 days notice to the Distributor prior to such revised prices taking effect. All prices
quoted in Exhibit C are EXW TRANS1’s manufacturing facility. Possession transfers to Distributor once
Product leaves TranS1 location.

 

(ii)         The
Transfer Price shall remain unchanged in the first [***] (i.e., for the Initial Order and for any other Products ordered for delivery
on or before [***]) and may be evaluated and adjusted thereafter at a minimum once per year and will be based on estimated market
prices, competition and profit objectives of all parties then reconciled prior to the conclusion of each calendar year within the
term of the Agreement.

 

(iii)        All
purchases of the Product hereunder shall be paid by Distributor to TRANS1 based in US Dollars. Distributor
shall pay for Product purchased pursuant to the Initial Order and any Annual Order as follows: [***]. By way of example, the Initial
Order shall be for no less than $1,360,000 ([***] Products @ $[***] per Product plus [***] Products @ $[***] per Product), [***].
Distributor shall pay for Product purchased pursuant to an Additional Order within [***] ([***]) days of the date of invoice.
Payment by Distributor under this Agreement shall be made by wire transfer or other instrument approved by TRANS1.
If Distributor is delinquent in remitting payments to TRANS1 under the terms specified herein TRANS1 may,
at its option, (a) charge Distributor interest on past due amounts at a rate of [***] percent ([***]%) per calendar month,
provided such interest does not exceed the maximum rate allowed by law; (b) terminate and or modify the exclusivity of this Agreement;
(c) in the case of repeated and material delinquencies, require advance payment, payment on delivery, bank letter-of-credit or
bank-guaranteed payments for future shipments; and/or (d) with respect to Additional Orders, change the payment term for future
invoices from [***] ([***]) days to [***] ([***]) days. Distributor shall comply with such modified payment terms designated by
TRANS1. The foregoing remedies of TRANS1 are not exclusive, but are in addition to any and all remedies available
to TRANS1 under this Agreement and applicable law.

 

[***] Confidential treatment requested
pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been
filed separately with the Commission.

 

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(b)          Prices.
Nothing contained herein, however, shall be deemed to limit in any way the right of Distributor to determine the prices
at which the Products purchased by Distributor may be sold by Distributor to any other distributor or any other customer.
The distributor agrees not to sell products in any jurisdiction other than the Territory or knowingly sub-distribute products to
others for distribution outside the Territory.

 

7.          Confidentiality;
No Competition

 

(a)          During
the term of this Agreement, neither Distributor nor any of its employees, agents or representatives shall:

 

(i)          Manufacture,
sell, market or deliver any product, or participate in any manner in such activities, if such product is in competition with any
product manufactured, sold, marketed or distributed for sale by TRANS1; provided that if TRANS1 develops a new product
which is competitive with any product then being sold or marketed by Distributor for another person or entity, Distributor
shall have ninety days following notice from TRANS1 to cease marketing and selling the competing product;

 

(b)          Information.
Each party acknowledges that it may disclose certain confidential information (the “Information”) to the other party.
If either party discloses such Information to the other, the receiving party will (i) use at least the same degree of care to maintain
the secrecy of such Information as the receiving party uses to maintain the secrecy of its own confidential information and (ii)
use the Information only to accomplish the purposes of this Agreement. The disclosing party will mark as “confidential”
all tangible items supplied to the receiving party that contain Information of the disclosing party. Within 20 days of any oral
disclosures of Information, the disclosing party will provide the receiving party with a writing memorializing the Information
disclosed and the date of disclosure. The placement of copyright notices on such items will not constitute publication or otherwise
impair their confidential nature.

 

(c)          Disclosure.
Neither party will disclose the Information of the disclosing party to any person except those of the receiving party’s employees
or agents that require access to accomplish the purposes of this Agreement and have been made aware of the confidentiality obligations
herein. If the receiving party learns of an actual or potential unauthorized use or disclosure of the disclosing party’s
Information, the receiving party will promptly notify the disclosing party and, at the disclosing party’s request, provide
the disclosing party with reasonable assistance to recover its Information and to prevent subsequent unauthorized uses or disclosures
of such Information. Each party acknowledges that (i) the unauthorized use or disclosure of any Information of the disclosing party
will cause irreparable damage for which it will not have an adequate remedy at law and (ii) the disclosing party will be entitled
to injunctive and other equitable relief in such cases.

 

(d)          Limitations.
Neither party will have any confidentiality obligation with respect to the confidential information of the disclosing party that
(i) the receiving party independently knew or develops without using the Information of the disclosing party, (ii) the receiving
party lawfully obtains from another person under no obligation of confidentiality or (iii) is or becomes publicly available other
than as a result of an act or omission of the receiving party or any of its employees or agents.

 

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8.          Ownership.

 

All patents, copyrights,
trademarks, trade secrets, regulatory approvals and other proprietary rights in or related to the Products are and will remain
the exclusive property of TRANS1 or its licensors, whether or not specifically recognized or perfected under applicable
law. During the term of this Agreement, Distributor may use TRANS1’s trademarks to promote the Products, provided
that prior to publishing or disseminating any advertising or promotional material bearing TRANS1’s trademarks, Distributor
will deliver a sample of such materials to TRANS1 for prior approval. Nevertheless, TRANS1 shall use commercially reasonable efforts
to promptly register its trademarks with the authorities in the Territory.

 

9.          Representations
and Warranties.

 

(a)          Existence
and Authority. Each party represents and warrants that it is a corporation duly organized, validly existing and in good standing
under the laws of its jurisdiction of incorporation and has the corporate power and authority to execute, deliver and perform this
Agreement. The execution of this Agreement and the performance thereof have been duly authorized by all necessary corporate action
on its part and do not conflict with the terms or conditions of any agreement to which such party is subject.

 

(b)          Products.
TRANS1 represents and warrants that the Products will (i) conform to the Product Specifications and (ii) comply with the
requirements of any applicable law or regulation.

 

(c)          Intellectual
Property. TRANS1 represents and warrants that it has all necessary ownership rights to market, sell and distribute the
Products in the Territory, and that the manufacture, sale and use of the Products and any distribution of the Promotional Materials
will not infringe any patents, copyrights, trademarks or other intellectual or proprietary rights of any third parties.

 

(d)          Disclaimer.
EXCEPT AS OTHERWISE PROVIDED IN THIS AGREEMENT, ALL WARRANTIES, CONDITIONS AND REPRESENTATIONS WITH RESPECT TO THE PRODUCTS OR
THE PROMOTIONAL MATERIALS, WHETHER EXPRESS OR IMPLIED, ARISING BY LAW, CUSTOM, PRIOR ORAL OR WRITTEN STATEMENT BY THE PARTIES OR
OTHERWISE (INCLUDING, BUT NOT LIMITED TO ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, TITLE AND NON-INFRINGEMENT)
ARE HEREBY OVERRIDDEN, EXCLUDED AND DISCLAIMED.

 

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10.       Limitation
of Liability.

 

UNDER NO CIRCUMSTANCES
WILL EITHER PARTY BE LIABLE FOR ANY CONSEQUENTIAL, INDIRECT, SPECIAL, PUNITIVE OR INCIDENTAL DAMAGES OR DIRECT OR INDIRECT LOST
PROFITS, WHETHER FORESEEABLE OR UNFORESEEABLE, BASED ON CLAIMS OF THE OTHER PARTY OR ITS CUSTOMERS (INCLUDING, BUT NOT LIMITED
TO, CLAIMS FOR LOSS OF GOODWILL, USE OF MONEY OR USE OF THE PRODUCTS, INTERRUPTION OF STOPPAGE OF WORK OR IMPAIRMENT OF OTHER ASSETS),
ARISING OUT OF BREACH OR FAILURE OF EXPRESS OR IMPLIED WARRANTY, BREACH OF CONTRACT, MISREPRESENTATION, NEGLIGENCE, STRICT LIABILITY
IN TORT OR OTHERWISE.

 

11.       NO
DAMAGES.

 

TRANS1 SHALL NOT BE
LIABLE FOR ANY DAMAGES, WHETHER INCIDENTAL, CONSEQUENTIAL OR OTHERWISE, FOR A FAILURE TO FILL ORDERS, DELAYS IN SHIPMENT OR DELIVERY,
OR ANY ERROR IN FILLING AN ORDER.

 

12.       Audit.

 

During the term of
this Agreement and for one year after its expiration or termination, TRANS1 or its accountants may, upon 30 days’
prior notice to Distributor, audit the accounting records of Distributor during the normal working hours to verify
Distributor’s compliance with the obligations under this Agreement; provided, however, that TRANS1 will not
be entitled to conduct such audit more than once per year.

 

13.       Indemnity.

 

Except for liabilities
to the extent caused by acts of Distributor which are outside the scope of its authority under this Agreement, a breach
of this Agreement by Distributor, Distributor’s failure to comply with applicable laws, or the negligence or
willful misconduct of Distributor, its employees, agents or contractors, TRANS1 will indemnify, defend and hold harmless
Distributor from and against any and all liabilities, losses, suits, claims, damages and expenses (including attorneys’
fees and costs) to the extent based on claims arising out of or relating to (i) the manufacture, use, distribution, promotion or
sale of the Products, or (ii) the infringement of any patent, copyright, trademark or other intellectual property rights of any
third parties with respect to the Products or Promotional Materials (except to the extent caused by contributions made to the Promotional
Materials by Distributor). Distributor will (i) notify TRANS1 promptly of any such actual or potential claim;
(ii) allow TRANS1 to control the defense of the claim; (iii) cooperate in the defense of such claim and (iv) not settle
such claim without TRANS1’s consent.

 

Distributor will
indemnify, defend and hold harmless TRANS1 from and against any and all liabilities, losses, suits, claims, damages and
expenses (including attorneys’ fees and costs) to the extent based on claims arising out of or relating to (i) acts of Distributor
which are outside the scope of its authority under this Agreement, (ii) a breach of this Agreement by Distributor, (iii)
Distributor’s failure to comply with applicable laws, (iv) the negligence or willful misconduct of Distributor,
its employees, agents or contractors, and (v) the infringement by TRANS1 of any patent, copyright, trademark or other intellectual
property rights of any third parties with respect to any portion of the Promotional Materials created by Distributor. TRANS1
will (i) notify Distributor promptly of any such actual or potential claim; (ii) allow Distributor to control the
defense of the claim; (iii) cooperate in the defense of such claim and (iv) not settle such claim without Distributor’s
consent.

 

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14.       Term
and Termination.

 

(a)          Term.
This Agreement will become effective on the Effective Date and continue in effect for four (4) years thereafter, unless earlier
terminated pursuant to paragraph 14(b). This Agreement is renewable for up to four (4) subsequent one (1) year renewal periods
if both parties agree in writing at least 90 days prior to the expiration of the initial term or any renewal term of its intention
not to renew.

 

(b)          Termination
for Cause. Either party may terminate this Agreement, without judicial or administrative notice or resolution, immediately
upon notice to the other party if:

 

(i)          the
other party or any of its employees breaches any material obligation under this Agreement and such party fails to cure the breach
within thirty days, unless the clause breached expressly excludes a cure period, after receipt of written notice thereof. Failure
by TRANS1 to deliver Products in accordance with the schedule set forth in the forecast for more than three months during
any one year period will be considered breach of a material obligation;

 

(ii)         the
other party or any of its employees breaches any material obligation under this Agreement that expressly excludes a cure period.

 

(iii)        either
party ceases to conduct business in the normal course, is declared insolvent, undergoes any procedure for the suspension of payment,
makes a general assignment for the benefit of creditors or a petition for bankruptcy, reorganization, dissolution or liquidation
is filed by or against it; or

 

(iv)        the
direct or indirect ownership or control of the other party changes as follows: TRANS1 may only exercise its right of termination
under this Section in the event that the ownership of Distributor changes by more than 50%. Distributor may only
exercise its right of termination under this Section if a third party gains control of TRANS1 from, or subsequent to, the
date hereof. Control of TRANS1 will be deemed to have changed to a third party if that party acquires control over 50% or
more of the voting shares of TRANS1. If one party chooses not to terminate this Agreement upon the occurrence of the said
event of the other party with the other party’s notice, this Agreement shall be continuously binding upon both parties, and
both parties shall assure that it will continuously perform their obligations thereunder. For purposes
of this Section, an initial public offering of a party will not be considered to create a right of termination under this Agreement.

 

(c)          Termination
for Failure to Purchase Minimum Requirements. TRANS1 may terminate this Agreement, as provided for in Section 3(b) if
Distributor fails to submit the Initial Order or any Annual Order.

 

(d)          [***].

 

[***] Confidential treatment requested
pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been
filed separately with the Commission.

 

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(e)          Consequences
of Termination. Upon expiration or termination of this Agreement for any reason the parties will comply with the following
termination obligations:

 

(i)          Distributor
will pay all due and outstanding amounts.

 

(ii)         Distributor
will, at TRANS1’s option, destroy or deliver to TRANS1 or its designees all Promotional Materials within
Distributor’s possession or control, provided, if TRANS1 is the party terminating, TRANS1 shall reimburse
Distributor for all direct and indirect costs associated with producing such materials.

 

(iii)        Distributor
is required to return all Products, at TRANS1’s expense, within 30 days of termination. There will be no refund issued
for any returned Product.

 

(f)          Survival.
The provisions of Sections 3.e.(vii), 4(k) and (l), 5(d), 7, 8, 10, 11, 12, 13, 14, 15, 18 and 23 will survive the expiration or
termination of this Agreement.

 

15.       Insurance.

 

TRANS1 will
maintain product liability insurance in an amount sufficient to cover complete cost of product liability, regulatory and intellectual
property liability with an insurance company rated at least A+3 by Best’s rating guide. Distributor will maintain
insurance in an amount sufficient to cover any Distributor warehousing facilities and to cover wrongful acts by Distributor
in the distribution, sale and promotion of the Products.

 

16.       U.S.
Export Restrictions.

 

Distributor
acknowledges that the Products and related information, documents and materials may be subject to export controls under U.S. Export
Administration Regulations. Distributor will (i) comply with all legal requirements established under these controls, (ii)
cooperate with TRANS1 in any official or unofficial audit or inspection that relates to these controls and (iii) not export,
re-export, divert or transfer any such item or direct products thereof to any country to which such transfer is prohibited by such
export controls, unless Distributor has obtained the prior written authorization of TRANS1 and the U.S. Department
of Commerce.

 

    	14

    	 

    

 

	EXECUTION COPY

 

17.       Force
Majeure.

 

Neither party will
be liable for any failure or delay in performing an obligation under this Agreement that is due to causes beyond its reasonable
control, such as natural catastrophes, governmental acts or omissions, laws or regulations, labor strikes or difficulties, chaos,
terrorist activities, war or transportation stoppages. These causes will not excuse either party from paying amounts due to the
other through any available lawful means acceptable to the other party.

 

18.       Notices.

 

Any notice required
or permitted under this Agreement shall be in writing and either mailed by nationally recognized overnight courier, registered
or certified mail, return receipt requested, or by express delivery service to the other party. All notices shall be sent to the
attention of the Chief Executive Officer of such other party at the address set forth in the first paragraph of this Agreement
or at such other addresses or to such other persons as such party may previously have designated by written notice. Notice will
be deemed to have been given upon receipt.

 

19.       Foreign
Corrupt Practices Act (FCPA) Distributor is required to abide with all requirements of United States FCPA. FCPA guidelines
are available on-line at http://www.fcpa.us

 

20.       Assignment.

 

Except as otherwise
provided, neither party may assign, delegate, subcontract or otherwise transfer this Agreement or any of its rights or obligations
without the other party’s prior approval, which approval will not be unreasonably withheld.

 

21.       Waiver,
Amendment, Modification.

 

Except as otherwise
provided, any waiver, amendment or other modification of this Agreement will not be effective unless in writing and signed by the
party against whom enforcement is sought.

 

22.       Severability.

 

If any provision of
this Agreement is held to be unenforceable, in whole or in part, such holding will not affect the validity of the other provisions.

 

23.       Governing
Law and Dispute Resolution.

 

This Agreement will
be governed by and interpreted in accordance with the laws of the State of North Carolina, excluding its conflict of laws principles.
Any claim arising out of or relating to this Agreement or the existence, validity, breach or termination thereof, whether during
or after its term, will be brought in, and the parties hereby consent to the jurisdiction of, the federal courts sitting in Wilmington
or Raleigh, North Carolina.

 

    	15

    	 

    

 

	EXECUTION COPY

 

24.       Entire
Agreement.

 

This Agreement and
its Exhibits constitute the complete and entire statement of all terms, conditions and representations of the agreement between
TRANS1 and Distributor with respect to its subject matter and supersedes all prior writings or understandings.

 

25.       Copy
and Language

 

This Agreement shall
be executed in multiple copies, each of which is original and with identical legal effect. This Agreement shall be made in both
English and Chinese. In case there is any difference or conflict between the two versions, the English version shall prevail.

 

[No Text Below]

 

    	16

    	 

    

 

	EXECUTION COPY

 

[Signature Page of
DISTRIBUTION AGREEMENT]

 

IN WITNESS WHEREOF,
TRANS1 and Distributor cause this Agreement to be executed by their duly authorized representatives identified below.

 

	TranS1	 	 Jiade Sunshine	 
	 	 	 	 	 	 
	:	/s/ Ken Reali	 	:	/s/ Ming Ming Tian	 
	 	 	 	 	 	 
	:	Ken Reali	 	:	Ming Ming Tian	 
	 	 	 	 	 	 
	:	President and Chief Executive Officer	 	:	President	 

 

    	17

    	 

    
 

	EXECUTION COPY

 

EXHIBIT A

 

PRODUCT LIST AND CURRENT PRICE LISTS

 

Prices and product list is as of current
International Price List

 

		·	AxiaLIF Brand Products

 

EXHIBIT B

 

Exclusive in China

 

For the purpose of this Agreement, China or People’s Republic
of China shall not include Hong Kong Special Administrative Region, Macao Special Administrative Region and Taiwan.

 

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	EXECUTION COPY

 

EXHIBIT C

 

2012 PRICE LIST

 

	 	 	 	 	 	 	AxiaLIF 2L
	Tier	 	Units	 	AxiaLIF 1L	 	S1 Implant	 	
        L4-L5

Implant

	Tier 1	 	[***]	 	[***]	 	[***]	 	[***]
	Tier 2	 	[***]	 	[***]	 	[***]	 	[***]
	Tier 3	 	[***]	 	[***]	 	[***]	 	[***]
	Tier 4	 	[***]	 	[***]	 	[***]	 	[***]
	Tier 5	 	[***]	 	[***]	 	[***]	 	[***]

 

AXIALIF 1L

 

	Product	 	Code	 	Price
	Axialif 1L Implants	 	Refer to worksheet	 	[***]
	1L Universal Plug (per plug)	 	TR1-2346	 	[***]
	1L Single Use Instruments	 	TR1-2200	 	[***]
	1L Reusable Instruments	 	TR1-1102	 	[***]

 

AXIALIF 2L

 

	Product	 	Code	 	 
	Axialif 2L S1	 	Refer to worksheet	 	[***]
	Axialif 2L+ L4/L5 Anchor	 	Refer to worksheet	 	[***]
	1L Single Use Instruments	 	TR1-2200	 	[***]
	2L Reusable Instruments	 	 	 	[***]
	2L Single use Instruments	 	TR1-2207	 	[***]
	Facet Screws	 	Code	 	 
	Facet screws (2 per pack)	 	Refer to worksheet	 	[***]
	Axialif 360 Disposable Facet Instruments	 	TR1-2700	 	[***]
	Facet Key Wire	 	TR1-2701	 	[***]
	 	 	 	 	 
	OTHERS	 	 	 	 
	 	 	 	 	 
	Timmy training model (torso reusable Model)	 	 	 	[***]
	Inserts for reusable training model	 	 	 	[***]
	 	 	 	 	 

 

[***] Confidential treatment requested
pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been
filed separately with the Commission.

 

    	19

    	 

    

 

	EXECUTION COPY

 

EXHIBIT E

 

Marketing Plan

 

Major International Congresses attended with surgeons

 

Annual National Congresses

 

	Qty.	 	
        CATALOG 

        #
	 	DESCRIPTION	 
	 	 	TR1-2905	 	AxiaLIF® 1L Stabilization System	Regional Congresses
	 	 	TR1-2906	 	TranS1® Facet Screw System	 
	 	 	TR1-2902	 	AxiaLIF® 2L Stabilization System	 

 

Direct Marketing

 

Surgeon Training per month

 

Sales Rep Training Schedule – first training

 

Ongoing training-

 

In country workshops planned

 

Visiting surgeon travel –

 

Other Marketing activities

 

	 	 	TR1-2907	 	AxiaLIF® 2LTM PLUS Stabilization System	 
	 	 	TR1-2926	 	AxiaLIF® 1LTM PLUS Stabilization System	 
	 	 	TR1-2910	 	TranS1® VectreTM Facet Fusion System	 

 

[***] Confidential treatment requested
pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been
filed separately with the Commission.

 

    	20

    	 

    

 

	EXECUTION COPY

 

 

EXHIBIT F

  

 

	 	 	 	 	 	 
	 	 	TR1-2201	 	AxiaLIF® Tissue Extractor – 4 Pack	
	 	 	TR1-2202	 	AxiaLIF® Tissue Extractors – 2 Pack	 
	 	 	TR1-2208	 	AxiaLIF ®Tight Disc Cutters – 4 Pack	 
	 	 	TR1-2217	 	AxiaLIF® Endplate Rasps – 2 Pack	 
	 	 	TR1-2218	 	Bowel Retractor	 
	 	 	TR1-2219	 	Conformable Tip Tubular Retractor	 

 

	TranS1® Product Stickers & Lot Numbers
	
         

         
	 	 	 
	
         

         
	 	 	 
	
         

         
	 	 	 
	
         

         
	 	 	 
	
         

         
	 	 	 
	
         

         
	 	 	 

 

[***] Confidential treatment requested
pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been
filed separately with the Commission.

 

    	21

    	 

    

 

	EXECUTION COPY

 

 

EXHIBIT G

 

 

	Surgery Information	 
	 	 	
	Date of Surgery:	 	 
	 	 	 
	Surgeon/Location:	 	 
	 	 	 
	Indication	 	 
	 	 	 
	Distributor	 	 
	 	 	 
	Posterior System Use	 	 
	 	 	 
	List all biologics/ synthetic/ autograft/ allografts used	 	 

 

	1L Implants	 	 	 	 	 	 	 	 
	Catalog #	 	Description	 	Units	 	Each	 	Total
	TR1-2300	 	TR1-2300:  AXIALIF 40MM 10 X 11	 	[***]	 	[***]	 	[***]
	TR1-2309	 	TR1-2309: AXIALIF 45MM 10 X 11 IMPT	 	[***]	 	[***]	 	[***]
	TR1-2323	 	TR1-2323: AXIALIF 40MM 10 X 10 IMPT	 	[***]	 	[***]	 	[***]
	TR1-2324	 	TR1-2324: AXIALIF 45MM 10 X 10 IMPT	 	[***]	 	[***]	 	[***]
	TR1-2301	 	TR1-2301: AXIALIF 40MM 10 X 12 IMP	 	[***]	 	[***]	 	[***]
	TR1-2310	 	TR1-2310: AXIALIF 45MM 10 X 12 IMPT	 	[***]	 	[***]	 	[***]
	TR1-2325	 	TR1-2325: AXIALIF 50MM 10 X 10 IMPT	 	[***]	 	[***]	 	[***]
	TR1-2326	 	TR1-2326: AXIALIF 55MM 10 X 10 IMPT	 	[***]	 	[***]	 	[***]
	TR1-2303	 	TR1-2303: AXIALIF 50MM 10 X 11 IMPT	 	[***]	 	[***]	 	[***]
	TR1-2320	 	TR1-2320:  AXIALIF 55MM 10 X 11 IMPT	 	[***]	 	[***]	 	[***]
	TR1-2304	 	TR1-2304: AXIALIF 50MM 10 X 12 IMPT	 	[***]	 	[***]	 	[***]

 

[***] Confidential treatment requested
pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been
filed separately with the Commission.

 

    	22

    	 

    

 

	EXECUTION COPY

 

	TR1-2306	 	TR1-2306: AXIALIF 60MM 10 X 11 IMPT	 	[***]	 	[***]	 	[***]
	TR1-2321	 	TR1-2321:  AXIALIF 55MM 10 X 12 IMPT	 	[***]	 	[***]	 	[***]
	TR1-2302	 	TR1-2302: AXIALIF 40MM 9 X 12 IMPT	 	[***]	 	[***]	 	[***]
	TR1-2305	 	TR1-2305: AXIALIF 50MM 9 X 12 IMPT	 	[***]	 	[***]	 	[***]
	TR1-2307	 	TR1-2307: AXIALIF 60MM 10 X 12 IMPT	 	[***]	 	[***]	 	[***]
	TR1-2308	 	TR1-2308: AXIALIF 60MM 9 X 12 IMPT	 	[***]	 	[***]	 	[***]
	TR1-2311	 	TR1-2311: AXIALIF 45MM 9 X 12 IMPT	 	[***]	 	[***]	 	[***]
	TR1-2318	 	TR1-2318: 2L 60MM 10 X 11 L4-L5 IMP	 	[***]	 	[***]	 	[***]
	TR1-2319	 	TR1-2319: 2L 60MM 10 X 12 L4-L5 IMP	 	[***]	 	[***]	 	[***]
	TR1-2322	 	TR1-2322:  AXIALIF 55MM 9 X 12 IMPT	 	[***]	 	[***]	 	[***]
	TR1-2327	 	TR1-2327: AXIALIF 60MM 10 X 10 IMPT	 	[***]	 	[***]	 	[***]
	TR1-2328	 	TR1-2328:  REV ROD, 40MM 10 X 10	 	[***]	 	[***]	 	[***]
	TR1-2329	 	TR1-2329:  REV ROD, 40MM 10 X 11	 	[***]	 	[***]	 	[***]
	TR1-2330	 	TR1-2330:  REV ROD, 40MM 10 X 12	 	[***]	 	[***]	 	[***]
	TR1-2331	 	TR1-2331:  REV ROD, 40MM 9 X 12	 	[***]	 	[***]	 	[***]
	TR1-2332	 	TR1-2332:  REV ROD, 45MM 10 X 10	 	[***]	 	[***]	 	[***]
	TR1-2333	 	TR1-2333:  REV ROD, 45MM 10 X 11	 	[***]	 	[***]	 	[***]
	TR1-2334	 	TR1-2334:  REV ROD, 45MM 10 X 12	 	[***]	 	[***]	 	[***]
	TR1-2335	 	TR1-2335:  REV ROD, 45MM 9 X 12	 	[***]	 	[***]	 	[***]
	TR1-2336	 	TR1-2336:  REV ROD, 50MM 10 X 10	 	[***]	 	[***]	 	[***]
	TR1-2337	 	TR1-2337:  REV ROD, 50MM 10 X 11	 	[***]	 	[***]	 	[***]
	TR1-2338	 	TR1-2338:  REV ROD, 50MM 10 X 12	 	[***]	 	[***]	 	[***]
	TR1-2339	 	TR1-2339:  REV ROD, 50MM 9 X 12	 	[***]	 	[***]	 	[***]
	TR1-2340	 	TR1-2340:  REV ROD, 55MM 10 X 10	 	[***]	 	[***]	 	[***]
	TR1-2341	 	TR1-2341:  REV ROD, 55MM 10 X 11	 	[***]	 	[***]	 	[***]
	TR1-2342	 	TR1-2342:  REV ROD, 55MM 10 X 12	 	[***]	 	[***]	 	[***]
	TR1-2343	 	TR1-2343:  REV ROD, 55MM 9 X 12	 	[***]	 	[***]	 	[***]
	TR1-2344	 	TR1-2344:  REV ROD, 60MM 10 X 10	 	[***]	 	[***]	 	[***]
	TR1-2345	 	TR1-2345:  REV ROD, 60MM 10 X 11	 	[***]	 	[***]	 	[***]
	TR1-2347	 	TR1-2347:  REV ROD, 60MM 10 X 12	 	[***]	 	[***]	 	[***]
	TR1-2348	 	TR1-2348:  REV ROD, 60MM 9 X 12	 	[***]	 	[***]	 	[***]
	Sub Total for AxiaLIF 1L Implants	 	[***]	 	 	 	[***]

 

	2L Implants*	 	 	 	 	 	 	 	 
	Catalog #	 	Description	 	Units	 	Each	 	Total
	TR1-2312	 	TR1-2312: 2L 25MM S1 IMPLANT	 	[***]	 	[***]	 	[***]
	TR1-2313	 	TR1-2313: 2L 30MM S1 IMPLANT	 	[***]	 	[***]	 	[***]
	TR1-2349	 	TR1-2349 2L 35 MM S1 IMPLANT	 	[***]	 	[***]	 	[***]
	TR1-2314	 	TR1-2314: 2L 50MM 10 X 11 L4-L5 IMP	 	[***]	 	[***]	 	[***]
	TR1-2315	 	TR1-2315: 2L 50MM 10 X 12 L4-L5 IMP	 	[***]	 	[***]	 	[***]
	TR1-2316	 	TR1-2316: 2L 55MM 10 X 11 L4-L5 IMP	 	[***]	 	[***]	 	[***]

 

[***] Confidential treatment requested
pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been
filed separately with the Commission.

 

    	23

    	 

    

 

	EXECUTION COPY

 

	TR1-2317	 	TR1-2317: 2L 55MM 10 X 12 L4-L5 IMP	 	[***]	 	[***]	 	[***]
	TR1-2350	 	TR1-2350: 2L 65MM 10 X 11 L4-L5 IMP	 	[***]	 	[***]	 	[***]
	TR1-2351	 	TR1-2351: 2L 65MM 10 X 12 L4-L5 IMP	 	[***]	 	[***]	 	[***]
	Sub Total for AxiaLIF 2L Implants 	 	[***]	 		 	[***]

 

*Each 2L Implant Product consists of 1 Unit of S1 Implant and
1 Unit of L5 Implant. Accordingly, the [***] units listed here constitutes [***] of the S1 Implant units and [***]% of the L5
Implant units required to meet the obligation to purchase 100 2L Implant Products as part of the Initial Order.

 

	TR1-2200	 	1L Single use Kit (no charge for every 1L implant and for every L4-L5 2L anchor)	 	[***]	 	[***]	 	[***]
	TR1-2346	 	TR1-2346: AXIALIF UNIVERSAL PLUG	 	[***]	 	[***]	 	[***]
	TR1-2207	 	2L Single Use Kit for Every 1L S1 anchor	 	[***]	 	[***]	 	[***]
	 	 	1L resuable instrument set	 	[***]	 	[***]	 	[***]
	 	 	2L reusable instrument set	 	[***]	 	[***]	 	[***]
	Sub Total for AxiaLIF Instruments Implants	 	[***]	 	 	 	[***]

 

	Catalog #	 	Description	 	Units	 	Each	 	Total
	TR1-2700	 	TR1-2700: TRANS-FACET INSTRUMENTS	 	[***]	 	[***]	 	[***]
	TR1-2701	 	TR1-2701:  FACET K-WIRE	 	[***]	 	[***]	 	[***]
	TR1-2824	 	TR1-2824:  5MM X 25MM FAC SCRW SET	 	[***]	 	[***]	 	[***]
	TR1-2825	 	TR1-2825:  5MM X 30MM FAC SCRW SET	 	[***]	 	[***]	 	[***]
	TR1-2826	 	TR1-2826:  5MM X 35MM FAC SCRW SET	 	[***]	 	[***]	 	[***]
	TR1-2827	 	TR1-2827:  5MM X 40MM FAC SCRW SET	 	[***]	 	[***]	 	[***]
	TR1-2828	 	TR1-2828:  5MM X 25MM LAG SCREW SET	 	[***]	 	[***]	 	[***]
	TR1-2829	 	TR1-2829:  5MM X 30MM LAG SCREW SET	 	[***]	 	[***]	 	[***]
	TR1-2830	 	TR1-2830:  5MM X 35MM LAG SCREW SET	 	[***]	 	[***]	 	[***]
	TR1-2831	 	TR1-2831:  5MM X 40MM LAG SCREW SET	 	[***]	 	[***]	 	[***]
	SubTotal For Facet Screws	 	[***]
	 	 	 
	Total for AxiaLIF and Facet Screws	 	[***]

 

[***] Confidential treatment requested
pursuant to a request for confidential treatment filed with the Securities and Exchange Commission. Omitted portions have been
filed separately with the Commission.

 

    	24

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