Document:

exhibit_4-10.htm

Exhibit 4.10

 

January 18, 2013

 

	
To:

	
Mazor Robotics Ltd. 7 

HaEshel St.

Caesarea Park, ISRAEL

 

Re: Extension and Term under Sub-Contracting Agreement

 

Reference is made to that certain Sub-Contracting Agreement dated September 28, 2005 by and between the undersigned (the "Agreement"). All capitalized terms used herein, which are not otherwise defined herein, shall have the meaning ascribed to them in the Agreement.

 

Whereas the term of the Agreement has previously expired, and notwithstanding such expiration, we have continued to manufacture the Robots which are the subject matter of the Agreement; and

 

Whereas the Parties wish that we will continue to manufactured the Robots under the terms and conditions of the Agreement;

 

Both parties hereby agree to extend the terms of the Agreement for a period of 24 months from the date of this letter, subject to prior termination in accordance with the terms and conditions of the Agreement, as applicable (the "Extended Agreement").

 

Notwithstanding to the abovementioned and to Section 11 of the Agreement, MPS hereby agree not to terminate the Extended Agreement in case that during any year of the extended period of 24 months the total quantity of Robots ordered by Mazor shall be less then 20, subject to MPS commitment to continue to manufacture all Robots with Mazor.

 

Both parties agree to change clauses 5.1 and 5.2 in order to reflect the fact that the Robots are a medical device and not a drug packaging device. Therefore the new clause 5.1 will be formulated as follows:

 

	
5.1

	
All Robots manufactured by MPS must (1) conform with the Specifications and (2) be manufactured, labeled, packaged, stored and tested (while in possession of, stored by, or under the control of MPS) in accordance with ISO 13485.

 

And the new clause 5.2 will be formulated as follows:

 

	
5.2

	
The Robot shall be manufactured, assembled and tested in compliance with the MPS's internal quality system, the Specifications, the Acceptance Criteria and to ISO 13485.

 

  

  

  

 

Please confirm your consent by fixing your signature below.

 

MPS Micro Precision System AG

 

By:  /s/ Nicola Thibaudeao

Name: Nicola Thibaudeao

Dated: January 18, 2013

 

By:  /s/ Gregoire Bagnoud

Name: Gregoire Bagnoud

Dated: January 21, 2013

 

Agreed and accepted:

 

Masor Robotics Ltd.

 

By:  /s/ Ori Hadomi

Name: Ori Hadomi

Title: CEO

Dated: January 18, 2013

 

By:  /s/ Eli Zehavi

Name: Eli Zehavi

Title: COO

Dated:  January 18, 2013

 

- 2 -exhibit_4-11.htm

Exhibit 4.11

 

Portions of this exhibit were omitted and filed separately with the Secretary of the Securities and Exchange Commission (the “SEC”) pursuant to an application for confidential treatment filed with the SEC pursuant to Rule 24b-2 under the Securities Exchange Act of 1934. Such portions are marked by [****].

Manufacturing Agreement

Between

 Mazor Surgical Technologies ("Mazor", or “the Client”)

and

Yizrael Tamuz Ltd. (“Tamuz" or "the Manufacturer”)

This agreement regarding the SpineAssist – Workstation (hereafter: "the system") including any version or successive device.

Both parties agree to the following:

	
  

	
1.

	
General

Tamuz will manufacture, assemble, test, pack and deliver the Systems to Mazor, ready for shipment.

 

For that purpose, Tamuz will establish manufacturing and assembly lines, as well as a sufficient storage area.

 

The Manufacturer will also train its personnel in the above activities including engineers, quality assurance personnel, material and assembly specialists.

Tamuz is obligated to sell the System solely to Mazor and accordingly, Mazor is obligated to purchase all requirements of the System solely from the Manufacturer, during the term of this agreement.

	
  

	
2.

	
Terms of Agreement

This agreement is in effect for a period of 48 months from the Signing Date, unless earlier terminated as explained below (see paragraph 10). At the end of 48 months, the Agreement will be automatically extended for an additional year, unless either party notifies of an alternate intention in a written notice, 90 days prior to the end of the 48 months. Renewal will be upon mutual agreement of both parties.

	
  

	
3.

	
System Specifications

Mazor will provide to Manufacturer any and all available information required for the manufacturing of the System, including drawings, specifications, samples, current supplier details, testing equipment and any other information needed. Tamuz is obligated to manufacture the System according to Mazor's specifications and drawings. In the event that the Manufacturer requires changes or modifications to specifications or drawings, they must first be approved in writing by Mazor's ECO process. Mazor will also provide training for Tamuz project personnel for as long as needed.

 

  

  

  

 

	
  

	
4.

	
Pricing

Following is a pricing schedule for the SpineAssist System:

 

Unit price for first 10 units: $[****] each.

 

Unit price for consecutive 10 units manufactured by Tamuz: $[****] each (for an order for no less than 10 units).

 

For each of the Systems ordered after the first 20 units, the target price will be $[****].

The cost reduction, to be implemented after the purchase of first 20 units, will be divided between Mazor ($[****]) and Tamuz ($[****]), to be achieved through reduction of purchase and engineering changes. The above prices exclude the MSG (Miniature Surgical Guidance) Robot (hereafter: "the Robot"), which will be manufactured solely by Mazor.

	
  

	
5.

	
Price Linking, Payment Terms and Guarantee

The System pricing is NIS and will be linked to the USD rate at the date of payment (last known).

 

In case of a rise of more than 10% in the total cost of off shelf components or raw material, despite Tamuz's efforts to avoid such a rise, the system price will be raised accordingly.

In the event that the Tamuz raise the prices more than 10%, Mazor reserves the right to suggest an alternative supplier. Notification of such a raise and an alternative suggestion must be in writing before purchasing the raised cost part.

Payment terms: 30 days from end of invoice month 

 

The invoice will be issued with the supplied system to Mazor.  In case the Systems or part of the order will not be demand by Mazor,  an invoice will be issued after 6 month from the required date according to Mazor PO.

 

	
  

	
6.

	
Current Component Stock

Mazor will sell to Tamuz the entire stock of components in its possession which is coherent to the System's bill of material.

 

  

2

  

 

The above mentioned stock components will be suitable for the assembly of no more than 10 Systems.

The price of components will be cost price – based on the price list attached hereto as Exhibit A.

 

Payment by the Manufacturer for components will be concurrent with payment by Mazor for the first 10 Systems.

 

	
  

	
7.

	
Win/Win Cost Reduction Mechanism

Tamuz will act to reduce the cost of the System in one or more of the following ways:

 

	
  

	
·

	
Engineering changes

	
  

	
·

	
Component changes

	
  

	
·

	
Use of alternative suppliers

Following Mazor's approval to any change and subsequent to that change being applied to the System, Tamuz will reduce the price of the System by 50% of the total cost reduction.

If one of the parties invests in an NRE for cost reduction, the amount saved will compensate the party for their investment. The above mentioned win/win method will be effective after the Return of Investment is complete.

	
  

	
8.

	
Engineering Change Orders

Tamuz will provide Mazor with engineering services at the following prices (to take effect after the first 10 Systems):

	
  

	
  ·

	
Up to 10 ECO's per year, up to 10 rows per ECO – no charge

	
  

	
  ·

	
For ECO's over 10, up to 10 rows per ECO - $[****] per ECO

	
  

	
  ·

	
For each row over 10 rows - $[****] per row

 

        With exception to Revision change, Documentation changes which means Instructions comments and etc.

 

	
  

	
9.

	
Orders and Delivery

Mazor will place Purchase Orders in a lead time that will be determined by both parties.

 

The lead time for the Systems will be in accordance with the maximum lead time of the purchased items (LLI's).

 

  

3

  

 

If Mazor cannot commit to such lead time, it will give Tamuz a binding forecast with a longer lead time for firm Purchase Orders.

 

The System will be delivered to Mazor after all Mazor's QA requirements have been met. Mazor has the right to change the QA requirements from time to time.

 

The System will be shipped with the proper documents according to Mazor regulations.

 

	
  

	
10.

	

Liability

Mazor will test and approve the Systems from Tamuz prior to shipment.

 

In the event of a quality complaint from an end-user, Tamuz will ship replacement parts, a complete System or repair a System at Tamuz, as Mazor deems appropriate. No further actins or compensation will be required from the Manufacturer.

 

For the elimination of doubt, Mazor claims that the System is a Mazor proprietary product and as so, Mazor carries responsibility for its operation.

 

	
  

	
11.

	

Termination

 

This Agreement can be terminated by written notice by either party due to one or more of the following circumstances:

	
  

	
·

	
Essential breach of contract by either side

	
  

	
·

	
Cease of business activity by either side

	
  

	
·

	
In the event that Tamuz does not meet the price of the delivery schedule as committed.

	
  

	
·

	
In case of significant deterioration in the System manufacturing and assembly quality, as will be defined by the Mazor QA Manager and after being presented to the Tamuz team and a fair opportunity for improvement takes place.

	
  

	
·

	
Tamuz may terminate this Agreement if during any year the total quantity of Systems ordered by Mazor is less than 20, starting from year 2006.

In the event of Agreement termination by Mazor for any reason, Mazor will immediately purchase from the Manufacturer, all the Systems, parts and spare parts in stock or in purchase orders from suppliers.

 

  

4

  

 

	
Mazor Surgical Technologies, Ltd

	
Yizrael Tamuz Ltd.

	
__________________

	
_____________

 

	
By: /s/ Eli Zehavi

Name: Eli Zehavi

Title:COO

	
By: /s/ Ilan Alfia

Name: Ilan Alfia

Title: CEO

	  	  
	
Address:

7 HaEshel St.

Caesarea Park, 38900

P.O.Box 3104

Israel

	
Address:

Kibbutz Yizrael

19350

Israel

	
Tel: +972-4-6270171

Fax: +972-4-6377234

	
Tel: +972-4-6598333

Fax: +972-4-6492406

	  	  
	
Date: February 15, 2005

	 

 

5

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