Document:

Exhibit 10.2

 

DEVELOPMENT AGREEMENT

 

This Development
Agreement (this “Agreement”) executed this 29th day of October,
2014, effective as of March 28, 2014 (the “Effective Date”), is by and between Point Medical, Inc., a Delaware corporation
(“PMI”), and Leveraged Developments LLC, a New Hampshire limited liability company (“LD”). PMI
and LD are individually a “Party”, and together are the “Parties,” to this Agreement.

 

WITNESSETH

 

WHEREAS,
LD and PMI are parties to the Point Medical, Inc. Leveraged Developments LLC License/Development/Intellectual Property and Collaboration
Agreement Terms dated 28 March 2014 (the “Term Sheet”), which contemplates this Agreement as well as the Asset
Purchase and Intellectual Property Assignment Agreement (as hereafter defined), and the Parties have been performing pursuant
to terms thereof, it being understood that this Agreement and the Asset Purchase and Intellectual Property Assignment Agreement
will supersede and terminate the Term Sheet effective as the date hereof to the extent of the matters contemplated by this Agreement
and effective as of the Closing to the extent of the matters contemplated by the Asset Purchase and Intellectual Property Agreement;

 

WHEREAS,
PMI and LD are simultaneously entering into an Asset Purchase and Intellectual Property Assignment Agreement (the “Asset
Purchase and Intellectual Property Assignment Agreement”) pertaining to the transfer by LD to PMI of tangible and intangible
assets pertaining to the Product;

 

WHEREAS,
certain personnel of LD have expertise in the engineering and development of the Product, PMI desires for such personnel to continue
to carry out the engineering, development and Regulatory Approval of the Product pursuant to the Development Program, on behalf
of and for the benefit of PMI;

 

WHEREAS,
in entering into this Agreement, it is in the best interest of both PMI and LD to support the market entry, validation, market
approval and market acceptance of the Product as the best-in-class technology that enables a new clinical standard of care, and
for LD to collaborate with and assist PMI in negotiations with Third Parties to secure acceptable transfer costs, margins and
other business objectives;

 

WHEREAS,
it is the intent and expectation of the Parties to collaborate on marketing initiatives such as trade shows, expert panels/advisors,
and trade organization involvement as appropriate in supporting the mutual interest of both Parties to the extent determined by
PMI; and,

 

     

     

    

 

NOW
THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties agree as follows:

 

1.            Recitals.
The representations contained in the foregoing ‘WHEREAS clauses’ are incorporated into this Agreement as if fully set forth herein.

 

2.            Definitions.
For the purpose of this Agreement, the following definitions shall be applicable:

 

2.1           “Affiliates”
shall have the meaning as set forth within the Asset Purchase and Intellectual Property Assignment Agreement.

 

2.2           “Assigned
Intellectual Property Rights” shall have the meaning as set forth within the Asset Purchase and Intellectual Property
Assignment Agreement.

 

2.3           “Assigned
Patent Rights” shall have the meaning as set forth within the Asset Purchase and Intellectual Property Assignment Agreement.

 

2.4           “Assigned
Trademark Rights” shall have the meaning as set forth within the Asset Purchase and Intellectual Property Assignment
Agreement.

 

2.5           “Carlisle
Intellectual Property Assignment Agreement” shall have the meaning set forth in the Asset Purchase and Intellectual Property
Assignment Agreement.

 

2.6           “Closing”
shall have the meaning as set forth within the Asset Purchase and Intellectual Property Assignment Agreement.

 

2.7           “Closing
Date” shall mean that date on which the Closing occurs.

 

2.8           “Competing
Product” means any product, item or Improvement which competes or potentially competes with the Product including any
Product Accessory or any product or item conceived of in connection with the Research and Development Agreement or which constitutes
an Improvement to the Product including any Product Accessory or other improvement to any product or item conceived of in connection
with the Research and Development Agreement.

 

2.9           “Commercially
Reasonable Efforts” shall mean, with respect to the development or commercialization of the Product, efforts and resources
commonly used in the medical device industry for a product of similar commercial potential at a similar stage in its lifecycle,
taking into consideration its safety and efficacy, its cost to develop, the competitiveness of alternative products, its proprietary
position, the likelihood of regulatory approval, its profitability, and all other relevant factors. Commercially Reasonable Efforts
shall be determined on a market-by market basis without regard to the particular circumstances of a Party, including any other
product opportunities of such Party.

 

2.10         “Confidential
Information” shall have the meaning set forth in the Confidential Disclosure Agreement by and between the Parties dated
February 28, 2014, except as modified by Section 8 of this Agreement.

 

2.11         “Control”
or “Controlled” shall mean Information and Inventions, Patent Rights or other intellectual property right, possession
of the ability, whether directly or indirectly, and whether by ownership, license or otherwjse, to assign, or grant a license,
sublicense or other right to or under, as provided for herein without violating the tenns of any agreement or other arrangement
with any Third Party.

 

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2.12         “Development”
shall have the meaning ascribed to it in the Carlisle Intellectual Property Assignment Agreement.

 

2.13         “Development
Plan” means the plan for the development of the Product, including requirements, features, specifications, priorities,
milestones, constraints and time schedule and other infonnation delivered and agreed to by the parties from time to time. The
Development Plan as of the date of the execution of this Agreement is attached as Exhibit A. Beginning not later than thirty (30)
days after the date of the signing of this Agreement and thereafter on a monthly basis or more frequently as shall be mutually
agreed, LD and PMI will, in good faith, meet, discuss and update the Development Plan. The Development Plan shall be based upon
the application by LD of Commercially Reasonable Efforts to the Development Program in order to apply for Regulatory Approval
for the optimized Product at the earliest possible date.

 

2.14         “Development
Program” shall mean the program for designing, engineering, developing, optimizing, testing, initiating manufacturing
and obtaining Regulatory Approval for commercial marketing of the Product pursuant to the Development Plan and Product Accessories
checklist.

 

2.15         “Field”
shall mean any and all commercial use, commercial markets and any research applications related to the field of medicine, including
but not limited to (i) any and all hospital-based applications for the Product, (ii) any and all clinic or clinical-based applications
for the Product, and (iii) any and all non-hospital sites or non-hospital markets, nursing facilities, veterinary facilities,
including but in no way limited to alternate site, alternate care, emergency care, and home care markets.

 

2.16         “First
Commercial Sale” shall mean the date on which PMI or its designated agent, in a commercial transaction, first sells the
Product to a Third Party following Regulatory Approval, including but limited to FDA approval.

 

2.17         “FDA”
shall mean The Food and Drug Administration of the United States Department of Health and Human Services, or any successor agency(ies)
thereof performing similar functions.

 

2.18         “Gross
Margin” shall mean Net Sales minus cost of goods sold (“COGS”).

 

2.19         “Improvement”
shall mean any modification, variation or revision to an apparatus, method, product or technology, or any discovery, technology,
device, process or formulation related to an apparatus, method, product or technology, whether or not patented or patentable,
including any enhancement in the manufacture or steps or processes thereof, ingredients, preparation, presentation, formulation,
method, product or technology, any discovery or development of any new or expanded indications for an apparatus, method, product
or technology, or any discovery or development that improves the stability, safety or efficacy of an apparatus, method, product
or technology), in each case, to the extent related to the Technology or the Product including without limitation the Product
Accessories and/or Assigned Intellectual Property Rights.

 

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2.20         “Information
and Inventions” shall mean all technical, scientific and other know how and information, trade secrets, knowledge, technology,
means, methods, processes, practices, formulas, instructions, skills, techniques, procedures, experiences, ideas, technical assistance,
designs, drawings, assembly procedures, computer programs, apparatuses, specifications, data, results and other material, including
pre-clinical and clinical trial results, manufacturing procedures and test procedures and techniques, (whether or not confidential,
proprietary, patented or patentable) in written, electronic or any other form now known or hereafter developed, and all Improvements,
whether to the foregoing or otherwise, and other discoveries, developments, inventions, and other intellectual property (whether
or not confidential, proprietary, patented or patentable), in each case, to the extent related to the Technology or the Product
including without limitation the Product Accessories and/or Assigned Intellectual Property Rights.

 

2.21         “Intellectual
Property Rights” shall have the meaning set forth in the Carlisle Intellectual Property Assignment Agreement.

 

2.22         “LD
Note to PMI” shall have the meaning set forth within the Asset Purchase and Intellectual Property Assignment Agreement.

 

2.23         “LD
Post-Effective Date Know-How” shall mean all proprietary knowledge, information and expertise obtained, developed or
created by LD after the Effective Date or as to which LD has rights relating to the Technology, whether or not covered by any
patent, patent application or future patent application, software, derivative works, and other works, whether copyrightable or
not, copyright design, trademark, trade secret or other industrial or intellectual property rights, including without limitation
the Technology Intellectual Property, Improvements, Information and Inventions.

 

2.24         “Multi-Source
Selector” shall mean the planned device referenced in Exhibit B for selecting and directing different fluid sources to
the Pump for administering infusion therapy.

 

2.25         “Net
Sales” shall mean the gross amounts invoiced for sales of the Product in the Territory by PMI, its Affiliates and/or
its sublicensees to Third Parties, less deductions for the following costs actually allowed or incurred:

 

(i)          freight,
postage and transportation charges on shipment of such Product to the customer, including handling and insurance on such shipment;

 

(ii)         sales
(such as VAT or its equivalent) and excise taxes, other consumption taxes, customs duties and other governmental charges imposed
upon the sale of the Product to the customer;

 

(iii)        charge-back
payments, rebates, and similar product- specific payments paid to a governmental entity specifically with respect to sales of
the Product under a governmental rebate program;

 

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(iv)        trade,
quantity and cash discounts actually granted to the customer with respect to the Product;

 

(v)         credits,
rebates and charge-backs, and allowances or credits to the customer on account of damaged products, rejection or returns of the
Product or on account of retroactive price reductions affecting the Product;

 

(vi)        actual
bad debt expense not to exceed 3% of gross amounts invoiced; and

 

(vii)       any
item similar in character or substance to any of the foregoing prevailing at the time and customary in the medical device industry
at the time as determined by PMI.

 

Notwithstanding
the foregoing, sales among a Party and its Affiliates or permitted sublicensees for resale shall be excluded from the computation
of Net Sales; provided, however, that the subsequent resale shall be included in Net Sales hereunder. If
a Product is sold for consideration other than cash, the Net Sales from such sale or transfer shall be deemed the then
fair market value of such Product. The supply of the Product without charge (i) as commercial samples, (ii) as charitable donations
or (iii) for use in development and post-marketing studies shall be excluded from the computation of Net Sales.

 

In
the event that a Product is sold as part of a Combination Product (as defined in Section 5.7), Net Sales from sales of such Combination
Product shall be determined pursuant to this same Section 5.7.

 

2.26         “Patent”
shall mean a patent or a patent application, including any divisions, continuations, continuations-in-part, invention certificates,
substitutions, reissues, reexaminations, extensions, registrations, patent term extensions, supplementary protection certificates
and renewals of any of the above, and any foreign equivalents of any of the foregoing.

 

2.27         “Patent
Rights” shall mean any of the following: (a) United States patents; (b) United States patent applications (both provisional
and non-provisional), PCT patent applications, and divisionals, continuations and claims of continuation-in-part applications
which shall be directed to subject matter specifically described in such United States and/or PCT patent applications, and the
resulting patents (whether such divisionals, continuations or continuation in-part applications are based upon a United States
patent, United States patent application or PCT application); (c) any patents resulting from reissues or reexaminations of the
United States patents described in (a) and (b) above; (d) foreign patents; (e) foreign patent applications and, to the extent
applicable, divisionals, continuations and claims of continuation-in-part applications which shall be directed to subject matter
specifically described in such foreign patent applications, and the resulting patents (whether such divisionals, continuations
or continuation in-part applications are based upon a foreign patent application or a foreign patent); (f) any foreign patents,
resulting from foreign procedures similar to United States reissues and reexaminations, of the foreign patents and applications
described in (d) and (e) above as disclosed within Assigned Patent Rights, Improvements, and Information and Inventions;
and, (g) any additional inventions conceived after the Effective Date and during the Term of this Agreement ) which relate to
the Technology which are not covered under subparts (a) -(g).

 

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2.28         “Product”
shall have the meaning as set forth within the Asset Purchase and Intellectual Property Assignment Agreement.

 

2.29         “Product
Accessories” shall have the meaning as set forth within the Asset Purchase and Intellectual Property Assignment Agreement.

 

2.30         “Pump”
shall mean the infusion pump Product based on the IP conveyed in the Asset Purchase and Intellectual Property Assignment Agreement.

 

2.31         “Regulatory
Approval” shall mean any approval, licenses, registrations, or authorizations of any applicable supra-national, federal,
national, regional, state, provincial or local regulatory agencies, departments, bureaus, commissions, councils or other government
Regulatory Authority regulating or otherwise exercising authority with respect to the Product in the Territory and required for
the manufacture, use, storage, import, transport or sale of any such Product in any country of the Territory, including but not
limited Pre-Market Notifications (“510(k)”) European Commission (“EC”) Annex II CE Mark certifications,
Doctor and Dentist Exemption Certificates (“DDX”), Clinical Trials in Marketed Products (“CTMP”),
Drug Master Files (“DMF”), national filings, Manufacturing Authorization Applications (“MAA”),
MAA dossiers, MAA renewals, MAA variations and Clinical Trials Exemptions (“CTX”).

 

2.32         “Regulatory
Authority” shall mean any applicable supra-national, federal, national, regional, state, provincial or local regulatory
agencies, departments, bureaus, commissions, councils or other government entities regulating or otherwise exercising authority
with respect to the Technology or the Product in the Territory.

 

2.33         “Regulatory
Changes” shall mean any changes in or to a Product, its components or its Regulatory Approval imposed by the applicable
Regulatory Authority subsequent to Regulatory Approval. For the avoidance of doubt, changes which LD makes for product quality,
compliance requirements, and productivity improvements not imposed by the applicable Regulatory Agency shall not be considered
Regulatory Changes.

 

2.34         “Research
and Development Agreement” shall mean the Research and Development Agreement of even date herewith.

 

2.35         “Specifications”
shall mean the minimum specification for the manufacture and performance of the Product, which shall be established by LD and
agreed upon by the Parties and documented in the Development Plan and additionally through Product Accessories.

 

2.36         “Technology”
shall have the meaning as set forth within the Asset Purchase and Intellectual Property Assignment Agreement.

 

2.37         “Technology
Intellectual Property” shall mean any Patent, Patent Rights or Trademark that at any applicable time after the Effective
Date during the Term is Controlled by LD that is necessary or useful to make, use, sell, offer for sale, import or export
the Product including without limitation Product Accessories for use in the Field within the Territory.

 

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2.38         “Term”
shall have the meaning set forth in Section 6.

 

2.39         “Territory”
shall mean worldwide.

 

2.40         “Third
Party” shall mean any entity other than PMI or LO and their respective Affiliates.

 

2.41         “Trademark”
shall mean any word, name, symbol, device, or any combination thereof used by a person or any other entity or which a person or
any other entity has a bona fide intention to use in commerce to identify and distinguish the goods produced or distributed, including
a unique product, from those manufactured or sold by others to indicate the source of those goods.

 

2.42         “Transferred
Assets” shall have the meaning ascribed to it by the Asset Purchase and Intellectual Property Assignment Agreement.

 

2.43         “Valid
Claim” shall mean, with respect to a particular country, either: (i) a claim of an issued and unexpired patent included
within the Patent Rights that has not been held permanently revoked, unenforceable ·or invalid by a decision of a court
or other governmental agency of competent jurisdiction, unappealable or unappealed within the time allowed for appeal, and that
has not been admitted to be invalid or unenforceable through reissue or disclaimer or otherwise; or (ii) a claim of a pending
patent application included within the Patent Rights that claim was filed in good faith and has not been abandoned or finally
disallowed without the possibility of appeal or refiling of said application. In the event that a claim of an issued and unexpired
patent within the Patent Rights is held by a court or other governmental agency of competent jurisdiction to be unenforceable,
unpatentable or invalid, and such holding is reversed on appeal by a higher court or agency of competent jurisdiction, such claim
shall be reinstated thereafter as a Valid Claim hereunder.

 

		3.	Development Program.

 

3.1           Purpose
and Scope. The Parties wish to and hereby agree pursuant to the terms hereof to collaborate in the development and commercialization
of the Product within the Field. LD under this Agreement will have responsibility for engineering and developing the initial Product
and Product Accessories, subject to the terms hereof. PMI under this Agreement will provide consideration to LD for specific deliverables,
including all technical development activities, pre-production activities, regulatory filings and completed product readiness
for product launch and shipments. LD will be the development party in this Agreement and PMI will be the commercial party with
all title and rights to the assigned technology and Product as defined in the Asset Purchase and Intellectual Property Assignment
Agreement. To that end, the Parties will embark on a Development Program with each party bearing specified responsibilities, all
as further described herein. This Agreement contemplates the development, support of PMI’s filing and otherwise for obtaining
Regulatory Approval, and manufacturing preparations completed by LD and the marketing and commercial sale of the Product by PMI.
PMI, at its sole discretion, may fund additional product development programs with LD beyond the Product and/or within
the time frame and payment schedule currently set forth in Section 3.6, and nothing in this Agreement shall be deemed to extend
beyond or to apply to anything other than the Product, or to limit or obligate PMI in any way with respect to products other than
the Product. Notwithstanding the foregoing, PMI agrees to reasonably consult with LO as to its interest in and capabilities with
respect to the development of products in addition to the Product.

 

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3.2           Development
of the Product. The Parties each agree that they will use Commercially Reasonable Efforts to develop the Product as set forth
by the Development Program in view of the specified responsibilities of each Party. To this end, the Parties shall develop mutually
agreeable Specifications for the Product based on the parameters as set forth in the Development Plan (attached to this Agreement
and included herein as Exhibit A) and Product Accessories checklist (attached to this Agreement as Exhibit B) and pursuant to
the results of activities undertaken during the course of the Development Program. The Parties will work constructively together
to insure all options necessary for a minimally marketable Product having gained Regulatory Approval are planned for and completed
under the Development Program.

 

		3.3	Conduct of
                                         Development Program.

 

3.3.1           LD’s
Obligations. LO shall use its good faith business and scientific judgment as applied to commercial development projects, to
allocate sufficient time, effort, equipment and facilities to carry out the Development Program in accordance with the timelines
set forth therein, including but not necessarily limited to the timeline pursuant to the Development Plan. LD shall work diligently,
consistent with accepted business practices and legal requirements, to develop the Product. Such LD obligations shall at least
include (i) use Commercially Reasonable Efforts to diligently complete development of the Product as indicated through the Development
Program, (ii) prepare for and initiate manufacturing of the Product in conjunction with a selected Third Party manufacturer (including
with Mack Holding Company), (iii) support of PMI’s efforts to obtain Regulatory Approval for the Product, including without limitation
by way of creating and preparing all Product related material needed in conjunction with the filing for Regulatory Approval, (iv)
advise and assist PMI on negotiations with MACK Group Corporation (MACK) or any other proposed Third Party manufacturer of the
Product or any Product Accessory, to the extent requested by PMI, and (v) advise PMI on PMI’s plans for successful commercial
Product launch and execution, to the extent requested by PMI. LD shall conduct its efforts hereunder in strict accordance with
all applicable laws, regulations and guidelines, including without limitation, the requirements for Regulatory Approval. For the
avoidance of doubt, LD shall not, in any capacity, directly or indirectly engage in the marketing or commercial sale of the Product
or any Product Accessory or any other product pertaining to the Transferred Assets or any LD Post-Closing Know-How, other than
providing assistance to PMI or an authorized PMI licensee as indicated in this subsection.

 

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3.3.2           PMI’s
Obligations. PMI shall use its good faith business and scientific judgment as applied to commercial development projects,
to allocate sufficient time and effort to carry out its obligations under the Development Program, including but not necessarily
limited to the timeline pursuant to the Development Plan. Such PMI obligations shall at least include (i) securing the capital
reasonably needed to support the Development Program, (ii) develop and prepare critical go-to-market elements for successful Product
commercial release, (iii) file for Regulatory Approval for the Product; (iv) develop and implement a product support/tracking
and customer clinical support plan, (v) work with LO as required in collaboration on final design and market readiness for the
first Product given Regulatory Approval, (vi) engage new customers and partners as appropriate in preparation for the launch of
the Product upon Regulatory Approval, and (vii) engage in the offer for sale, sale, export or import of the Product either directly
or through an authorized PMI licensee or other distribution channel, and manage the process and be solely responsible for the
cost of any recall or field remediation action for any Product which is sold. PMI shall also promptly evaluate each iteration
of the Product prototype to enable LO to meet its performance deadlines pursuant to the Development Plan and obligations pursuant
to Section 3.3.1. PMI shall conduct its efforts hereunder in strict accordance with all applicable laws, regulations and guidelines,
including without limitation, the requirements for Regulatory Approval.

 

3.3.3           Expenses.
In any collaborative activity pursuant to development of a Product, reasonable travel expenses may be reimbursed from one Party
to the other Party as appropriate and standard in the industry. As a default understanding, each Party will be responsible for
its own expenses, unless mutually agreed otherwise on a case by case basis.

 

		3.4	Clinical Trials
                                         and Regulatory Approval.

 

3.4.1           Clinical
Trials. Subject to the terms of the Development Plan and further pursuant to Section 3.3.1, in the Territory, LD shall (i)
use its Commercially Reasonable Efforts to conduct required clinical trials of the Product and support PMI’s efforts to obtain
Regulatory Approval for the Product and for applicable regulatory compliance, and (ii) be responsible for all activities related
to the development and quality assurance/quality control relating to the Product and (iii) include PMI in such efforts in a consultative
capacity at PMI’s sole discretion.

 

3.4.2           Regulatory
Approval. Subject to the terms of the Development Plan and further pursuant to Section 3.3.1, LD shall use its Commercially
Reasonable Efforts to prepare all Product related materials needed for Regulatory Approval, including supporting any Pre Market
Notifications (“51O(k)”) submitted by PMI to the FDA, and shall have primary responsibility for: (i) all clinical data
and reports related to Product studies, and (ii) data support for all Regulatory Approvals covering the Product in the Territory.
LD and PMI shall consult with each other, to the extent determined by PMI, with respect to communications with the FDA, and LD
shall provide copies to PMI of all proposed FDA data and other material for submission to FDA, as much as in advance of the proposed
submission or delivery as reasonably practicable. The Parties shall cooperate in good faith with respect to all such submissions
and meetings with the FDA relating to regulatory approval of the Product. All regulatory dossiers or other regulatory filings
pursuant to this Section 3.4.2 for the Product shall be the sole and exclusive property of PMI.

 

3.5           PMI
Site Visits to LD. Upon the delivery of five (5) days prior written notice, PMI shall have the right to visit the facilities
of LD to meet with LD representatives for any purpose whatsoever relating to this Agreement and/or the Development Program, including
without limitation status conferences, development updates and oversight of the Development Program.

 

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3.6           Development
Costs. PMI shall fund the development of the Product through the Regulatory Approval process and Product release according
to the following payment schedule, with the first payment due to LD on the l st day of the month following the Effective Date,
with subsequent monthly payments due to LD on the 1st day of each succeeding month until the cumulative payment total equals One
Million Dollars ($1,000,000), with a sliding monthly payment scale as indicated in this Section 3.6; provided, however, that such
payment obligations shall cease in the event that the Closing under the Asset Purchase and Intellectual Property Assignment Agreement
shall not occur as provided for therein. Provided that such Closing shall occur, an additional payment of $200,000 from PMI to
LO shall occur upon the latter of (i) the 1st day of month twelve ( 12) following the Effective Date or (ii) obtaining Regulatory
Approval of a Product. PMI may, at its sole discretion, accelerate payment of development costs pursuant to this Section 3.6 to
coincide with an accelerated completion of a first Product under the Development Program. Any such accelerated payment schedule
shall be memorialized as an amendment to this Agreement.

 

	Month	 	Monthly Payment Due 

(US$, in OOO’s)	 	 	Cumulative Amount

 (US$, in OOO’s)	 
	1	 	 	40	 	 	 	40	 
	2	 	 	30	 	 	 	70	 
	3	 	 	50	 	 	 	120	 
	4	 	 	120	 	 	 	240	 
	5	 	 	120	 	 	 	360	 
	6	 	 	120	 	 	 	480	 
	7	 	 	120	 	 	 	600	 
	8	 	 	120	 	 	 	720	 
	9	 	 	120	 	 	 	840	 
	10	 	 	120	 	 	 	960	 
	11	 	 	40	 	 	 	1000	 
	Latter of Month 12 or Regulatory Approval	 	 	200	 	 	 	1200	 

 

3.7           Regulatory
Inspections. LD, or any entity contracted by LD to manufacture the Product, shall cooperate with any inspection of its facilities
by a Regulatory Authority in the Territory, including but not limited to any inspection by such Regulatory Authority prior to
the granting of Regulatory Approval to market the Products in the Territory. LD shall notify PMI as soon as possible of any notification
received by LD from any Regulatory Authority in the Territory to conduct an inspection of its manufacturing or other facilities
used in the manufacturing, packaging, storage or handling of the Product, or relating to any claim of non compliance with regulatory
requirements. Copies of all correspondence and notices relevant to the Product to and from the Regulatory Authority in the Territory
will be provided by LD to PMI.

 

3.8           Regulatory
Changes. The Parties each agree that any Regulatory Changes shall automatically become part of the Project including the Development
Plan.

 

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3.9           Records.
LD will maintain for the longer of a period of ten (10) years or per regulatory requirements all records generated in the course
of its performance under this Agreement and necessary to evidence compliance with such laws and regulations as are applicable
to the design and manufacture of the Product. All such records shall be deemed the property of PMI, and a true and correct copy
of any such records shall promptly made available to PMI whenever requested by PMI.

 

3.10         Consultants
and Subcontractor§.. LD shall, as part of its regular project management communication to PMI, identify any consultant
or subcontractor who is to provide services under this Agreement prior to the retention of same. Except as may be otherwise approved
by PMI, such consultant or subcontractor shall not be retained unless they have entered into a written agreement with the Parties
whereby the consultant or subcontractor agrees to (i) hereby assign to PMI all rights, title and interest in any intellectual
property, know-how and the like (which shall be deemed LD Post-Closing Know-How under this Agreement) developed as a result of
their providing such services, (ii) agree to execute any documents and take all actions that are reasonably necessary to perfect
such assignment in the future; and (iii) provide to PMI any licenses in any intellectual property owned, controlled or utilized
by such consultant or subcontractor that may be required in order for PMI to utilize LD Post-Closing Know-How developed by the
consultants or subcontractors as a result of their providing such services.

 

		4.	Intellectual Property
                                         and License Grants.

 

4.1           Ownership
of Intellectual Property Rights. LD hereby assigns and agrees to assign to PMI all Intellectual Property Rights created or arising
after the Effective Date in the Development including without limitation all Improvements to the Technology and/or Technology
Intellectual Property and Assigned Intellectual Property Rights including LO Post Effective Date Know-How and other Information
and Inventions that are conceived, discovered, developed or otherwise made by or on behalf of LD during the Term of this Agreement
(or its Affiliates or its licensors or sublicensees), whether or not patented or patentable.

 

4.2           Disclosure
and Assignment. LD shall promptly disclose to PMI in writing, the conception or reduction to practice, or the discovery, development
or making of all Intellectual Property Rights created or arising after the Effective Date in the Development including without
limitation all Improvements to the Technology and/or Technology Intellectual Property and Assigned Intellectual Property Rights
including LO Post-Effective Date Know-How and other Information and Inventions that are conceived, discovered, developed or otherwise
made by or on behalf of LD during the Term of this Agreement (or its Affiliates or its licensors or sublicensees), whether or
not patented or patentable, and shall, and does hereby, assign, and shall cause its Affiliates or its sublicensees to so assign,
to PMI, without additional compensation, all of their respective rights, titles and interests in and to any and all of the foregoing.
To the extent necessary to assign any such intellectual property rights, LD shall enter into and execute all reasonable and appropriate
assignments, transfers and other agreements, and enter into all agreements with its employees, contractors, and Affiliates or
sublicensees, that are necessary or appropriate to ensure the assignment of such intellectual property and intellectual property
rights to PMI.

 

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4.3           lnventorship.
The determination of whether Improvement and/or Information and Inventions are conceived, discovered, developed or otherwise made
by a Party for the purpose of identifying initial proprietary rights (including any patent, trademark, copyright or other intellectual
property rights) therein, shall, for purposes of this Agreement, be made in accordance with applicable United States law.

 

		4.4	Grant of Licenses to LD.

 

4.4.1           License
Grant to LD Within the Field. Pursuant to the transfer of all rights, title and interest in the Intellectual Property Rights
from LD to PMI as described in Section 4.1 and, following the Closing, the Assigned Intellectual Property Rights, PMI hereby grants
back to LD an exclusive right and license within the Field to use the foregoing to the extent necessary to conduct the Development
Program and pursuant to the LD obligations as set forth in Section 3.3.1 during the Term of this Agreement. For the avoidance
of doubt, this grant to LD within the Field during the Term of the Agreement shall not, in any capacity, extend to the commercial
sale, offer for sale, import or export of the Product relating to any such sale, other than providing assistance to PMI or an
authorized PMI sublicensee.

 

4.4.2           License
Grant to LD Outside the Field. Pursuant to the transfer of all rights, title and interest in the Intellectual Property Rights
from LD to PMI as described in Section 4.1 and following the Closing in the Assigned Intellectual Property Rights, PMI hereby
grants back to LD a non-exclusive, royalty free, perpetual, fully paid-up right and license under the Intellectual Property Rights
and after the Closing under the Assigned Intellectual Property Rights to make, have made, use, sell, offer for sale, import and
export products solely outside the Field; provided, however, that PMI shall have a right of refusal to market, sell, commercialize
and distribute any such product. Such right of first refusal shall be triggered by written notice by LD to PMI given in accordance
with this Agreement detailing the nature, scope and other material information relating to the opportunity, whereupon PMI shall
have a 90 day right to exclusively negotiate with LD pertaining thereto. In the event that LD and PMI shall fail to reach agreement
prior to the expiration of such 90 day period, LD shall not enter into any agreement with any third party that is materially more
favorable to such third party than the last written offer made by PMI without first offering PMI such terms and PMI not having
accepted same within 90 days of being so offered by LD in writing, following which the foregoing provisions of this sentence shall
continue to apply.

 

4.4.3           Sublicenses
by LD. LD shall have the right to grant sublicenses under the rights and licenses granted pursuant to Section 4.4.1 and Section
4.4.2, including express restrictions thereof, with the prior written consent of PMI, which shall not be unreasonably withheld,
conditioned or delayed, to Third Parties.

 

4.4.4           No
Implied License to LD. LD acknowledges that the rights and licenses granted to LD under Section 4.4.1 and Section 4.4.2 is
limited to the scope expressly granted, and all other rights under the Assigned Intellectual Property Rights are expressly reserved
by PMI.

 

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		4.5	Patent Prosecution and Maintenance.

 

4.5.1           Patent
Prosecution. The prosecution, filing and maintenance of all Patent Rights and applications shall be the responsibility of
PM I. All decisions with respect to prosecution of the Patent Rights are reserved to PMI.

 

4.5.2           Patent
Counsel and Expenses of Patent Right Prosecution. Ifrequested by PMI, LD shall transfer responsibility of prosecution and
maintenance of Assigned Patent Rights to an outside law firm agreeable to PMI, which shall also be designated to prosecute any
patent applications relating to prosecution of Improvements or Information and Inventions. Payment of all fees and costs, including
without limitation attorneys’ fees, relating to the filing, prosecution, and maintenance of the Patent Rights shall be the responsibility
of LD prior to the date of execution of this Agreement, and after the date of the execution of this Agreement, shall be the responsibility
of PMI.

 

		4.6	Infringement.

 

4.6.1           Infringement
by a Product. In the event of the institution of any suit in the Territory by a Third Party against PMI or LD or its sublicensees
for patent infringement involving the manufacture, use, sale, distribution or marketing of the Product, the party sued shall promptly
notify the other party in writing. PMI shall have the right to defend such suit at its expense. Each party shall assist and cooperate
in any such litigation without expense to the other party.

 

4.6.2           Infringement
by a Third Party. In the event that PMI or LD become aware of actual or threatened infringement of a Patent, that party shall
promptly notify the other party and confirm it in writing. PMI shall have the sole right to bring, at its own expense, an infringement
action against any Third Party and to use LD’s name in connection therewith, holding LD harmless in such event. If
PMI does not commence a particular infringement action within six (6) months, LD, after notifying
PMI in writing, shall be entitled to bring such infringement action at its own expense. The Party conducting such action shall
have full control over its conduct. In any event, LD and PMI shall
assist one another and cooperate in any such litigation at the other’s request without expense to the requested party.

 

4.6.3           Recovery.
PMI and LD shall recover their respective actual out-of-pocket expenses, or equitable proportions thereof, associated with any
litigation or settlement thereof from any recovery made by either Party (“Expenses”), with the Party conducting the
action first being entitled to full recovery of their Expenses, followed by recovery of Expenses incurred by the non-conducting
Party. Any excess amounts (after Expenses) shall be the sole and exclusive property of the party who brought and financed the
infringement action.

 

4.6.4           Status.
The Parties shall keep one another informed of the status of and of their respective activities regarding any litigation or settlement
thereof concerning the Product. LD may not settle any such infringement action if the settlement adversely impacts on the validity
or scope of any Patent without the prior written consent of PMI.

 

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		4.7	Trademark Registration,
                                         Maintenance and Enforcement.

 

4.7.1           Original
Trademark. Upon the Closing under the Asset Purchase and Intellectual Property Assignment Agreement, PMI may use the “BreezeTM”
for commercialization of the Product in the Field within the Territory.

 

4.7.2           Additional
Trademarks. In the event that applicable legal requirements should necessitate the use of a trademark other than the original
trademark pursuant to Section 4.8.1 for the Product, the Parties shall cooperate in proposing and designating an additional suitable
trademark or, in the alternative, select a suitable additional Trademark for use with the Product through utilization of an international
branding institute, whereby PMI shall bear costs related to branding/rebranding of the Product. Each such additional Trademark
shall be owned by PMI.

 

4.7.3           Registration
and Maintenance of the Trademark(s). As soon as is practicable after the Closing, PMI shall use Commercially Reasonable Efforts
to apply for, obtain, and maintain registration of the original trademark BreezeTM in its name with the United States Patent
and Trademark Office using trademark counsel engaged by PMI.

 

4.7.4           Defense
of Trademark Against Third Party Infringement. LO agrees to notify PMI in writing of any known or suspected conflicting use
of any Trademark, and the application for registration or use of trademarks confusingly similar thereto, or of any known or suspected
infringements or of unfair competition involving the Trademark in the Territory promptly after it acquires knowledge thereof.
PMI shall be responsible for the defense of the Trademark and will use Commercially Reasonable Efforts to defend the Trademark.
At the reasonable request of PMI, LD shall cooperate with PMI and render PMI its commercially reasonable assistance in the defense
of the Trademark, subject to reimbursement of the related out of pocket expenses of LD. Any damages and costs recovered shall
be for PMl’s sole benefit. In case PMI decides not to defend the Trademark within thirty (30) days of LD’s written request to
do so, LD shall be entitled to do so at its own expense in cooperation and with the commercially reasonable assistance of PMI
and, in such case, any damages and costs recovered shall be for LD’s sole benefit, subject to reimbursement of the out of pocket
expenses of PMI related to PMl’s assistance.

 

4.7.5           Goodwill
of Trademark(s). Each Party shall use its Commercially Reasonable Efforts to establish and maintain the goodwill in the Territory
of the Trademarks in the course of performing its obligations under this Agreement. LD agrees that all use of original or additional
trademarks will inure to the benefit of PMI. Without limitation, to the extent permitted by law, all goodwill deriving from the
use of the either the original or additional trademark pursuant to the terms of this Agreement or otherwise arising out of this
Agreement shall accrue solely and exclusively to PMI.

 

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5.          Additional
Payments. In addition to the development costs payable by PMI to LD pursuant to Section 3.8, PMI shall make the following
additional payments to LD, under the terms hereof:

 

5.1           Success
Fees. PMI shall pay to LD a success fee in the amount of (i) $100 for each Pump and (ii) $120 for each Multi-Source Selector
(the “Success Fee”) beginning on the latter of (x) the date of the First Commercial Sale of a Product or (y) receipt
by LO of the final payment of Two Hundred Thousand U.S. Dollars ($200,000) paid by PMI pursuant to Section 3.6, on a quarterly
basis within 45 days of the quarter close. The Success Fee shall be payable for each Pump and Multi-Source Selector sold by PMI
directly or indirectly through any licensee, distributor or OEM anywhere in the world; provided, however, that any particular
Pump or Multi-Source Selector shall be subject to only one Success Fee payment obligation, nor shall used or reconditioned Pumps
or Multi-Source Selectors be subject to a Success Fee.

 

5.2           Success
Fee Shares. PMI shall issue 50,000 shares of PMI common stock to LO or its nominee to be held in escrow with PMI’s attorneys
which shall vest and be released from escrow to LD if Regulatory Approval for the Product shall be granted by FDA prior to July
1, 2015. In the event such Regulatory Approval shall not be granted prior to July 1, 2015, such shares shall not vest and shall
be released from escrow back to PMI.

 

5.3           Offset
Relating to the Mack Loan. PMI may withhold twenty five percent (25%) of amounts due to LD under Section 5.1 and apply
such amount to the LD Note to PMI. Amounts withheld shall be applied first to interest due under the LO Note to PMI, and
thereafter to principal.

 

5.4           Advance
Payments. In order to promote acceleration of Product development, or for any other purpose to advance development, commercialization
or marketing aspects under this Agreement, PMI, at its sole discretion, may provide additional cash payments beyond the amounts
payable by PMI to LD pursuant to the timed development costs pursuant to Section 3.6. Any
such advance payments shall be credited to PMI against any other payments due LD pursuant
to Sections 3.6, 5.1, or pursuant to the Research and Development Agreement.

 

5.5           Transfer
Payments. It is contemplated
that MACK will serve as the original equipment manufacturer (“OEM”) to supply the Product. LD agrees that PMI may negotiate
the OEM transfer prices with MACK. PMI shall purchase Product directly from MACK at transfer prices specified in MACK agreements
with LD, or as subsequently agreed to by PMI with Mack. LD and PMI will cooperate in any commercially reasonable strategy to lower
manufacturing costs through constructive negotiations with MACK and continuous process improvements.

 

5.6           Success
Fee Term. The obligation of PMI to pay the Success Fee pursuant to Section 5.1 shall continue for the Product and country-by-country
basis, until the latest of:

 

(a)          Expiration
of the last to expire Valid Claim covering the use, importation, or sale of the Product in the country of sale; or

 

(b)          Fifteen
(15) years after the First Commercial Sale of the Product in such country.

 

Notwithstanding
the foregoing terms of this Section 5.6, upon the closing of the sale of all or substantially all of the assets of PMI relating
to the Product (the “PMI Product Assets”), the Success Fees provided for in Section 5.1 will terminate effective immediately
on the effective date of such transaction. In consideration of such termination, PMI will pay LD the greater of (i) three percent
(3.0%) of the “Net Proceeds” attributable to the PMI Product Assets, when and to the extent received, or (ii) ten million
dollars ($10,000,000). “Net Proceeds” shall mean gross proceeds from such transaction less all debts, obligations (including
without limitation indemnification obligations) and payables relating to such assets including the
fees, costs expenses of such transaction. “Received” means not subject to escrow and when otherwise available without
restriction.

 

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5.7           Taxes.
PMI shall pay, without limitation any tax, levy, income fee withholding tax or charge required by any statute, law, rule or
regulation now in effect or hereafter enacted including, without limitation, sales, use, value-added, property, fees and excise
or other similar taxes, licenses, import permits, state, county, city or other taxes arising out of or relating to this Agreement.
Notwithstanding the foregoing, if (a) the appropriate governmental entity imposes a withholding tax on any sums payable to LD
by PMI in connection with this Agreement and (b) such tax is paid by PMI on LD’s behalf, then PMI may deduct the amount of any
such tax paid from the fees due to LD under this Section 5, provided that PMI provides LD with an accounting of any and all such
payments prior to such deduction. Notwithstanding the foregoing, LD is responsible for the payment of all income and other taxes
due upon receipt of any payments made to it pursuant to this Agreement.

 

5.8           Method
of Payment. All payments required to be made by PMI hereunder shall be made by electronic transfer of immediately available
funds in United States Dollars through a bank designated by LD. In determining the proper rate of exchange to be applied to the
payments due hereunder, it is agreed that PMI shall calculate Success Fees on a quarterly basis in local currency (with each such
month considered to be a separate accounting period for the purpose of computing the Success Fees) and that PMI shall compute
a conversion of each such monthly total into United States currency utilizing the selling rate of exchange in effect on the last
day of each relevant calendar quarter as listed in the Wall Street Journal.

 

5.9           Payment
of Success Fees; Reports. Within forty five (45) days following each quarter after the Closing Date, PMI shall make an accounting
of all units sold for which a Success Fee is payable under Section 5.1 accrued during each such quarter, together with payment
for the Success Fee which is due for such quarter under the terms of this Agreement.

 

5.10         Audit.
During the Term and for one (1) year thereafter PMI shall maintain complete and accurate books and records relating to this
Agreement. LD shall, at its own expense upon no less than ten (10) days’ notice to PMI, have the right to cause independent auditors,
designated by LD, to audit the records of PMI for the purpose of verifying the accuracy of the amounts due to LD under this Agreement;
provided that PMI shall be obligated to pay such expenses if the auditor determines that PMI prepared such reports incorrectly
resulting in underpayment of the Success Fees by more than five percent (5%) for the period being audited. PMI shall immediately
pay any such underpayments to LD.

 

		6.	Term and Termination.

 

6.1           Term.
Unless otherwise terminated pursuant to this Section 6, this Agreement shall remain in full force and effect on a country-by-country
basis until the later of (a) expiration date of the last to expire of any issued Patent Right that includes at least one Valid
Claim and (b) the twentieth (20th) anniversary of the Closing Date (the “Term”), at which time PMI will be entitled
to exploit all Products and Technology without restriction or payment, unless this agreement is earlier terminated in accordance
with the following provisions of this Section 6.

 

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		6.2	Termination.

 

6.2.1           Termination
for Material Breach. Each Party shall have the right to terminate this Agreement and its obligations hereunder in the event
of a material breach by the other party, or materially fails to perform, its obligations under this A!:J, J’eement and fails to
cure such breach or nonperformance within twenty (20) days after receiving from the non-breaching Party written notice thereof,
the non-breaching Party in its sole discretion may terminate this Agreement upon prior notice to the defaulting Party.

 

6.2.2           Termination
by Mutual Consent. This Agreement may be terminated by the mutual consent of PMI and LD.

 

6.2.3           Termination
for Failure to Close. PMI in its sole discretion may terminate this Agreement in the event that the Closing under the Asset
Purchase and Intellectual Property Transfer Agreement shall fail to occur through no default on the part of PMI.

 

6.2.4           Termination
Upon Sale of PMI. This Agreement shall terminate upon the sale of all or substantially all of the assets of PMI, provided
that PMI pays to LD the Success Fee in accordance with Section 5.6 of this Agreement.

 

6.2.5           Termination
Upon Insolvency. Termination by the non insolvent or non breaching party in the event of the liquidation or dissolution of
the other party, the filing by or against the other party of a petition in bankruptcy or insolvency, the assignment by the other
party of its assets for the benefit of its creditors, the admission by the other party of its inability to pay its debts as they
come due, the appointment of a receiver or trustee for the assets of the other, or the making of any voluntary arrangement by
the other party with its creditors, which event is not discharged, waived or cured within sixty (60) days after the occurrence
thereof. Without limiting any of any party’s rights under any other provision of this Agreement, each party’s rights under this
Agreement will include those rights afforded by 11 U.S.C. 365(n) and any successor statute thereto (the “Code”).
If the bankruptcy trustee of a party as a debtor or such party
as a debtor-in-possession rejects this Agreement under 11 U.S.C. 365, either other party may elect to retain its rights hereunder
for the duration of this Agreement and avail itself of all rights and remedies to the full extent contemplated by this Agreement,
11 U.S.C. 365(n), and any other relevant sections of the Code or other relevant non-bankruptcy law.

 

6.3           Accrued
Obligations. Notwithstanding any termination under this Section 6, any obligation to pay payments which had accrued or become
payable as of the date of termination shall survive termination of this Agreement.

 

6.4           Ownership
of Intellectual Property. No termination of this Agreement shall modify, limit or affect PMI’s ownership interest in the Intellectual
Property Rights and other rights provided for by Article IV hereof nor limit or affect LD’s obligations to PMI with respect thereto.

 

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6.5           Force
Majeure Events. If either Party is prevented from performing
any of its obligations hereunder (other than payment obligations) due to any cause which is beyond the non-performing Party’s
reasonable control, including, without limitation, fire, explosion, flood, or other acts of God; acts, regulations, or laws of
any government; war, terrorist act or civil commotion; strike, lock-out or labor disturbances; or failure of public utilities
or common carriers (a “Force Maieure Event”), such non-performing Party shall not be liable for breach of this
Agreement with respect to such non-performance to the extent such non-performance is due to a Force Majeure Event. Such non-performance
will be excused for as long as such event shall be continuing (whichever period is shorter),
provided that the non-performing Party gives immediate written notice to the other Party of the Force Majeure Event. Such non-performing
Party shall exercise all reasonable efforts to eliminate the Force Majeure Event and to resume performance of its affected obligations
as soon as practicable. Should the event of Force Majeure continue unabated for a period of 60 days or more, the Parties shall
enter into good faith discussions with a view to alleviating its affects or to agreeing upon such alternative arrangements as
may be fair and reasonable having regard to the circumstances prevailing at that time.

 

6.6           Survival.
All rights granted and obligations undertaken by the Parties hereunder shall terminate immediately upon the event of any termination
or expiration of this Agreement, except for the following which shall survive according to their terms: Sections 3.9, 4.1, 4.2,
4.3, 6.3, 6.4, 6.6, 7, 8, 9, 10.1, 10.2, 10.3, 10.4, 10.5, 10.8, 10.9, 10.10 and 10.11. For the avoidance of doubt, LD shall not
grant or sublicense to any Third Party any rights granted pursuant to Section 4.4.1 and Section 4.4.2 subsequent to termination
or expiration of this Agreement.

 

		7.	Indemnification.

 

7.1           Indemnification
by PMI. PMI hereby agrees to indemnify, hold harmless and defend LD against any and all expenses, costs of defense (including
without limitation attorneys’ fees, witness fees, damages, judgments, fines and amounts paid in settlement) and any amounts LD
becomes legally obligated to pay because of any Third Party claim or claims against it to the extent that such claim or claims
(i) arise out of the breach or alleged breach of any representation or warranty by PMI hereunder, or (ii) arise from a Third Party
claim of injury or death or damage to property resulting from such Third Party’s use of the Product and not caused by LD’s negligence
or misconduct in the performance of its obligations under this Agreement, or (iii) are due to the negligence or misconduct of
PMI; provided that such indemnification obligation shall not apply to the extent such claims are covered by LD’s indemnity set
forth in Section 7.2 below.

 

7.2           Indemnification
by LD. LD hereby agrees to indemnify, hold harmless and defend PMI against any and all expenses, costs of defense (including
without limitation attorneys’ fees, witness fees, damages, judgments, fines and amounts paid in settlement) and any amounts PMI
becomes legally obligated to pay because of any claim or claims against it to the extent that such claim or claims (i) arise out
of the breach or alleged breach of any representation or warranty by LD hereunder, (ii) are due to the negligence or misconduct
of LD, or (iii) arise from a Third Party claim of injury or death or damage to property resulting from such Third Party’s use
of the Product to the extent caused by LD’s negligence or misconduct in the performance of its obligations under this Agreement;
provided that, such indemnification shall not apply to the extent such claims are covered by PMI’s indemnity set forth in Section
7.1 above.

 

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7.3           Procedure. Each
Party’s agreement to indemnify, defend and hold the other harmless under Sections 7.1 and 7.2 is conditioned on the
indemnified party (a) providing written notice to the indemnifying party of any claim arising out of the indemnified
activities within thirty (30) days after the indemnified party has knowledge of such claim; (b) permitting the indemnifying
party to assume full responsibility to investigate, prepare for and defend against any such claim; (c) assisting the
indemnifyi ng party, at the indemnifying party’s reasonable expense, in the investigation of, preparation for and defense of
any claim; and (d) not compromising or settling such claim without the indemnified party’s written consent. In the event that
the parties cannot agree as to the application of Sections 7.1 and 7.2 above to any particular loss or claim, the parties may
conduct separate defenses of such claim. Each Party further reserves the right to claim indemnity from the other in
accordance with Sections 7.1 and 7.2 above upon resolution of the underlying claim, notwithstanding subsection (b) above.

 

7.4           Insurance Coverage. Each Party represents and warrants that it is covered and will continue to be covered by a comprehensive
insurance program which covers all of each Party’s activities and obligations hereunder. Each Party shall provide the other party
with written notice at least fifteen (15) days prior to any cancellation or material change in such insurance program that reduces
coverage thereunder. Each Party shall maintain such insurance program, or other program with comparable coverage, beyond the expiration
or termination of this Agreement during (i) the period that any Product produced pursuant to this Agreement is intended to be
used in a clinical trial and (ii) to be sold commercially following Regulatory Approval.

 

		8.	Confidentiality;
                                         Restrictive Covenants.

 

8.1           Confidential
Information. The Party’s rights and obligations with respect to Confidential Information disclosed under this Agreement shall
be governed by the Confidential Disclosure Agreement executed between the Parties dated as February 18, 2014, except as set forth
below.

 

8.2           Authorized
Disclosure. The Parties agree that the terms, but not the mere existence, of this Agreement and the Asset Purchase and Intellectual
Property Assignment Agreement will be considered Confidential Information of both Parties. Notwithstanding the foregoing, either
Party may make disclosures required by law or regulation, provided prior notice is given to the other Party whenever possible,
and may disclose the general terms of this Agreement and the Asset Purchase and Intellectual Property Assignment Agreement to
bona fide potential corporate partners, and to financial underwriters, prospective investors, acquirers and merger partners, and
other Parties with a need to know such information. Any such disclosures, and any disclosure of the development of Products or
other developments under this Agreement, including but not limited to press releases, will be reviewed and consented to by each
party prior to such disclosure. Such consent shall not be untimely or unreasonably withheld by either party. All such disclosures
shall be made only to Parties under an obligation of confidentiality.

 

Notwithstanding
any other provision of this Agreement, each party may disclose Confidential Information if such disclosure:

 

(a)          is
in response to a valid order of a court or other governmental body of the United States or a foreign country, or any
political subdivision thereof; provided, however, that the responding party shall first have given notice to the other party
hereto and shall have made a reasonable effort to obtain a protective order requiring that the Confidential Information so
disclosed be used only for the purposes for which the order was issued;

 

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		(b)	is otherwise required by law or regulation, including SEC
related documents; or ·

 

(c)          is
otherwise necessary to file or prosecute patent applications, prosecute or defend litigation or comply with applicable governmental
regulations or otherwise establish rights or enforce obligations under this Agreement, but only to the extent that any such disclosure
is necessary.

 

8.3           Return
of Confidential Information. Upon termination of this Agreement, each Party shall use diligent efforts (including without
limitation a diligent search of files and computer storage devices) to return all Confidential Information received by it from
the other party, provided, however, that the receiving party may keep one copy of such Confidential Information for legal archival
purposes. Access to the copy so retained by the receiving party’s legal department shall be restricted to counsel and such Confidential
Information shall not be used except in the resolution of any claims or disputes arising out of this Agreement.

 

8.4           Publications.
Except as required by law, neither party shall publish or present the results of studies carried out with respect to Products
without the opportunity for prior review by the other party. Each party shall provide to the other the opportunity to review any
proposed abstracts, manuscripts or presentations which relate to Products at least thirty (30) days prior to their intended submission
for publication and such submitting party agrees, upon written request from the other party, not to submit such abstract or manuscript
for publication or to make such presentation until the other party is given a reasonable period of time to seek patent protection
for any material in such publication or presentation that it believes
is patentable.

 

8.5           Restrictive
Covenants. LD and Jeffrey Carlisle (the “Executive”) each agree beginning with Effective Date until the later of
(i) the one year anniversary of the Effective Date, (ii) Regulatory Approval for the Product, or (iii) May 30, 2017 (such
date being 30 days after the date of the last payment which will be due under the Research and Development Agreement) (such time
period, the “Restrictive Covenant Period”) that:

 

(a)          Neither
LD nor the Executive will, directly or indirectly, individually or as a consultant to, or an employee, officer, director, manager,
member, stockholder, partner, member, investor, lender or other owner or participant in any business entity (other than through
PMI as provided for herein), engage in or assist any other person or entity to engage in any business which competes with any
business in which PMI is engaging or in which PMI actively plans to engage (as evidenced by meaningful efforts by PMI with respect
thereto), anywhere in the world, including without limitation providing any design or development work for any Competing Product;
provided, that, this Section 8.5(a) shall not prohibit the Executive from acquiring, solely as a passive investment, up to 1%
of the securities of any publicly traded company whose activities may be in breach of the foregoing;

 

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(b)          Neither
LD nor the Executive will, directly or indirectly, (i) solicit in competition with PMI, divert or take away, or attempt to solicit
in competition with PMI, divert or take away, the business or relationship of PMI with any of its customers, clients, distributors,
OEMs, licensees, licensors, dealers, referral sources, business partners, suppliers, vendors, service providers, consultants,
lenders, investors, or any other person or entity with whom PMI does business (collectively, “Business Partners”), or
(ii) otherwise interfere with PMI’s business relationship with any of its Business Partners;

 

(c)          Neither
LD nor the Executive will, directly or indirectly, solicit, recruit, hire or engage, or otherwise interfere with the business
relationship of PMI with, any current or former employee of PMI, other than any person who ceased to be employed by PMI for a
period of at least six (6) months; and

 

(d)          Neither
LD nor the Executive will, directly or indirectly, intentionally assist any person or entity in performing any activity prohibited
by Sections 8.5(a), (b) or (c).

 

(e)          Notwithstanding
anything in the foregoing provisions of Section 8.5 to the contrary, Section 8.5 shall be not be deemed to apply to, or to
restrict LD or the Executive from his involvement in, (i) Our Health Connector, a medical records provider, as described in
Exhibit 8.5(e)(i), and (ii) continuation of his activities in the field of patient care monitoring, also known as patient
monitoring, as described in Exhibit 8.5(e)(ii).

 

8.6           Right
of First Refusal on any Competing Product. PMI shall have a right of refusal to market, sell, commercialize and distribute
any Competing Product which is developed by LD or the Executive or any Affiliate of his, directly or indirectly (such person or
entity, the “Developer”), during the three (3) year period following the end of the Restrictive Covenant Period. Such
right of first refusal shall be triggered by written notice by the Developer to PMI given in accordance with this Agreement detailing
the nature, scope and other material information relating to the Competing Product, whereupon PMI shall have a 90 day right to
exclusively negotiate with the Developer pertaining thereto. In the event that the Developer and PMI shall fail to reach agreement
prior to the expiration of this 90 day period, the Developer shall not enter into any agreement with any third party that is materially
more favorable to such third party than the last written offer made by PMI without first offering PMI such terms and PMI not having
accepted same within 90 days of being so offered by the Developer in writing, following which the foregoing provisions of this
sentence shall continue to apply.

 

9.          Representation
and Warranties.

 

9.1           Representations
and Warranties of Both Parties. Each Party hereby represents, warrants, and covenants to the other Party, as of the date of
the execution of this Agreement, that:

 

9.1.1           Duly
Organized. Each Party is duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation
and has full corporate power and authority to enter into this Agreement and to carry out the provisions hereof;

 

9.1.2           Due
Authorization. Each Party has taken all necessary action on its part to authorize the execution and delivery of this Agreement
and the performance of its obligations hereunder;

 

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9.1.3           Binding
Agreement. This Agreement has been duly executed and delivered on behalf of such Party, and constitutes a legal, valid, binding
obligation, enforceable against it in accordance with the terms hereof;

 

9.1.4           No
Conflict. The execution, delivery and performance of this Agreement by such Party does not conflict with any agreement, instrument
or understanding, oral or written, to which it is a party or by which it is bound, nor violate any law or regulation of any court,
governmental body or administrative or other agency having jurisdiction over such Party;

 

9.1.5           Government
Authorization. No government authorization, consent, approval, license, exemption of or filing or registration with any court
or governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, under any applicable laws,
rules or regulations currently in effect, is or will be necessary for, or in connection with, the transaction contemplated by
this Agreement or any other agreement or instrument executed in connection herewith, or for the performance by it of its obligations
under this Agreement and such other agreements except as may be required under the Merger Agreement or to obtain HSR clearance;
and,

 

9.1.6           Infringement.
Neither Party received any notice or other communication from a Third Party that the practice of the Technology, the Product,
or the Technology Intellectual Property infringes such Third Party’s intellectual property rights.

 

9.1.7           FDA
Debarment. To the best of its knowledge, it has not employed (and, to the best of its knowledge without further duty of inquiry,
has not used a contractor or consultant that has employed) and in the future will not employ (or, to the best of its knowledge
without further duty of inquiry, use any contractor or consultant that employs) any individual or entity debarred by the FDA (or
subject to a similar sanction of EMA), or, to the best of its knowledge without further duty of inquiry, any individual who or
entity which is the subject of an FDA debarment investigation or proceeding (or similar proceeding of EMA), in the conduct of
the pre-clinical activities or clinical trials of the Product.

 

10.         Miscellaneous.

 

10.1         Agency.
Neither party is, nor will be deemed to be, an employee, agent or legal representative of the other party for any purpose. Neither
party will be entitled to enter into any contracts in the name of, or on behalf of the other party, nor will a party be entitled
to pledge the credit of the other party in any way or hold itself out as having authority to do so. This Agreement is an arm’s-length
agreement between the parties and shall not constitute or be construed as a joint venture.

 

10.2         No
Third Party Beneficiaries. Except as specifically provided in this Agreement, this Agreement shall not confer any rights or
remedies upon any Person other than the Parties and their respective successors and permitted assigns.

 

10.3         Entire
Agreement. Except as agreed to by the parties in writing, this Agreement, and Exhibits hereto, together with the Asset Purchase
and Intellectual Property Assignment Agreement and its attachments and schedules and the Research and Development Agreement, constitute
the entire agreement among the Parties and supersedes any prior understandings, agreements or representations by or among the
Parties, whether written or oral, with respect to the subject matter hereof, including. without limitation, as to the matters
contemplated by this Agreement, the Term Sheet.

 

    22 

     

    

 

10.4         Successors
and Assigns. Neither this Agreement nor the rights or obligations of the Parties under this Agreement shall be assignable
without the written consent of the non assigning Party and any such purported assignment without the written consent of the non
assigning Party shall be void and without effect; provided, however that PMI may assign its rights hereunder at the closing of
a sale of all or substantially all of the assets relating to the Technology or a change of control transaction in which the holders
of the voting securities of PMI immediately before such transaction own less than 50% of the voting securities of the surviving
entity immediately after giving effect to such transaction. Except as otherwise provided herein, this Agreement and all covenants
and agreements contained herein shall be binding upon and inure to the benefit of the Parties hereto, their permitted successors,
permitted representatives and permitted assigns.

 

10.5         Severability.
Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending
term or provision in any other situation or in any other jurisdiction. In the event that any term or provision of this Agreement
would, under applicable law, be invalid or unenforceable in any respect, each Party intends that such provision will be construed
by modifying or limiting it so as to be valid and enforceable to the maximum extent compatible with, and possible under, applicable
law. For any such invalid or unenforceable provision, the Parties shall use commercially reasonable efforts to negotiate a substitute
valid and enforceable provision while preserving to the fullest extent possible the intent and agreements of the Parties set forth
herein.

 

10.6         Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together
shall constitute one and the same instrument, notwithstanding variations in format or file designation which may result from the
electronic transmission, storage and printing of copies of this Agreement from separate computers or printers. Facsimile signatures
and signatures transmitted via PDF shall or by any other electronic means shall be treated as original signatures.

 

10.7         Headings.
The Section headings contained in this Agreement are inserted for convenience only and shall not affect in any way the meaning
or interpretation of this Agreement.

 

10.8         Notices.
All communications between LD and PMI relating to this Agreement and the subject matter hereof shall be directed to the persons
designated to receive notices set forth in this Section 10.8 or such other individuals as they may designate. All notices, requests,
demands, Claims and other communications under this Agreement shall be in writing. Any notice, request, demand, Claim or other
communication under this Agreement shall be deemed duly given (i) when delivered personally to the recipient, (ii) upon confirmation
of facsimile (with a confirmation copy to be sent by overnight delivery) or (iii) one business day following the date sent when
sent by overnight delivery, at the following address:

 

    23 

     

    

 

If to
LO:

Jeffrey
Carlisle, Member

Leveraged Developments LLC

75 Congress Street

Portsmouth,
NH 03801

 

If
to PMI:

Jerry
Ruddle, President and COO

Point Medical, Inc.

665
Martinsville Road, Suite 219

Basking Ridge, NJ 07920

 

Either
Party may change the named party and address to which notices, requests, demands, Claims and other communications under this Agreement
are to be delivered by giving the other Party notice in the manner herein set forth.

 

10.9         Governing
Law. This Agreement shall be governed by and construed in accordance with the domestic laws of the State of Delaware without
giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction)
that would cause the application of the laws of any jurisdiction other than the State of Delaware. The Parties hereto submit to
the exclusive jurisdiction of the State and Federal courts in the State of Delaware and New Castle County with respect to any
dispute.

 

10.10         Amendments
and Waivers. No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed
by PMI and LO. No waiver by any Party of any provision of this Agreement or any default, misrepresentation or breach of warranty
or covenant under this Agreement, whether intentional or not, shall be valid unless the same shall be in writing and signed by
the Party making such waiver nor shall such wavier be deemed to extend to any prior or subsequent default, misrepresentation or
breach of warranty or covenant under this Agreement or affect in any way any rights arising by virtue of any prior or subsequent
such occurrence. Any consent, waiver or amendment signed by LO shall be deemed the consent, waiver or amendment of LO and its
Affiliates and any consent, waiver or amendment signed by PMI shall be deemed the consent, waiver or amendment of PMI’s and its
Affiliates pursuant hereto.

 

10.11         Expenses.
Except as expressly stated otherwise, each of the Parties will bear his or its own costs and expenses (including legal and accounting
fees and expenses) incurred in connection with this Agreement and transactions contemplated hereby and thereby.

 

10.12         Export
Control. This Agreement is made subject to any restrictions concerning the export of products or technical information from
the United States of America or other countries that may be imposed upon or related to PMI or LO from time to time ach party agrees
that it will comply with all applicable export laws and regulations in connection with its activities under this Agreement.

 

    24 

     

    

 

IN
WITNESS WHEREOF, PMI and LD intending legally to be bound hereby have caused this Development Agreement to be duly executed as
of the date first above written.

 

[Signature
Page Follows]

 

    25 

     

    

 

	POINT MEDICAL,INC.	 
	By /s/ Jerry C. Ruddle	 
	 	 
	Name: Jerry C. Ruddle	 
	 	 
	Title:President
    and COO	 
	 	 
	Date: 10/24/14	 
		 
	LEVER.AGED DEVELOPMENTS LLC	 
	By:
    	/s/
    Jeffrey Carlisle	 
	 	 
	Name: Jeffrey Carlisle	 
	 	 
	Title: Member	 
	 	 
	Date: 10/24/14	 
	Jeffrey Carlisle, individually, as to
    Section 8.5 and Section 8.6	 
	 	 
	/s/
    Jeffrey Carlisle	 

 

     

     

    

 

EXHIBIT
A

 

DEVELOPMENT
PLAN

 

     

     

    

 

 

     

     

    

 

 

     

     

    

 

 

     

     

    

 

 

     

     

    

 

 

 

     

     

    

  

EXHIBIT
B

 

PRODUCT ACCESSORIES

 

Development
Plan Options/Accessory Product Development Priorities:

 

		•	Pump casing design·,
includ ing rugged ized option

		•	IV
pump holder

		•	Multi-pump bolder

		•	IOS Simple
Control Application

		•	Multi-Sensor Remote

		•	Active Syringe Holder

		•	MRI Compatibili
ty Kit

		•	Multi-Pump IOS/Android App

		•	Multi-Source Selector

		•	PCA IOS/Android
AppExhibit 10.3

 

RESEARCH AND DEVELOPMENT
AGREEMENT

 

This
Research and Development Agreement (this "Agreement") executed this 29th
day of October, 2014, is by and between Point Medical, Inc., a Delaware corporation ("PMI"), and Leveraged
Developments LLC, a New Hampshire limited liability company ("LD"). PMI and LD are individually a "Party",
and together are the "Parties," to this Agreement.

 

WITNESSETH

 

WHEREAS,
LD and PMI are parties to that certain Development Agreement of even date herewith ("Initial Development Agreement"),
it being understood that this Agreement will, upon the completion of the Development Plan under the Initial Development Agreement,
extend the research and product and technology development relationship between LD and PMI, upon and subject to the terms and provisions
hereof;

 

NOW
THEREFORE, in consideration of the foregoing recitals and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties agree as follows:

 

1.          Recitals.
The representations contained in the foregoing 'WHEREAS clauses'
are incorporated into this Agreement as if fully set forth herein.

 

2.          Terms
Used Herein But Not Defined Herein. Terms used but not defined herein shall have the meaning ascribed to them in the Initial
Development Agreement or in the Asset Purchase and Intellectual Property Assignment Agreement of even date therewith (collectively
the "Other Agreements"). However, if a term is
defined in this Agreement and that same term also is used and defined in the Other Agreements, such term shall have the specific
meaning ascribed to it by this Agreement, and not the meaning ascribed to it in the Other Agreements.

 

3.          Definitions.
For the purpose of this Agreement, the following definitions shall be applicable:

 

3.1           "LD
R&D Agreement Know-How" shall mean all proprietary knowledge, information and expertise obtained, developed or created
by LD in connection with this Agreement or as to which LD has rights, whether or not covered by any patent, patent application
or future patent application, software, derivative works, and other works, whether copyrightable or not, copyright design, trademark,
trade secret or other industrial or intellectual property rights, including without limitation the R&D Agreement Technology,
R& D Agreement Improvements and R&D Agreement Information and Inventions.

 

3.2           "R&D
Agreement Development Plan" means the plan for the development of the R&D Agreement Products, including requirements,
features, specifications, priorities, milestones, time schedule, constraints and other information delivered and agreed to by
the parties. Each quarter or more frequently as may be mutually agreed, LD and PMI will, in good faith, meet, discuss, agree and
put in writing the R&D Development Plan for the upcoming four quarters or such lesser period as shall remain in the Term.
The R&D Agreement Development Plan shall be based upon the application by LD of Commercially Reasonable Efforts to the R&D
Development Agreement Development Program. This revised/rolling R&D Agreement
Development Plan will precede the start of the quarter by three months. For example, for the June 1, 2015 plan, LD and PMI will
complete this planning session in February 2015.

 

     

     

    

  

3.3           "R&D
Agreement Development Program" shall mean the program for designing, engineering, developing, optimizing, testing, initiating
manufacturing and obtaining Regulatory Approval for commercial marketing of the R&D Agreement Products, to the extent specified
by PMI.

 

3.4           "R&D
Agreement Improvement" shall mean any modification, variation or revision to an apparatus, method, product or technology,
or any discovery, technology, device, process or formulation related to an apparatus, method, any product or technology, whether
or not patented or patentable, including any enhancement in the manufacture or steps or processes thereof, ingredients, preparation,
presentation, formulation, method, any product or technology, any discovery or development of any new or expanded indications for
an apparatus, method, any product or technology, or any discovery or development that improves the stability, safety or efficacy
of an apparatus, method, any product or technology), in each case, to the extent related to the R&D Agreement Technology and
any R&D Agreement Product.

 

3.5           "R&D
Agreement Information and Inventions" shall mean all technical, scientific and other know-how and information, trade secrets,
knowledge, technology, means, methods, processes, practices, formulas, instructions, skills, techniques, procedures, experiences,
ideas, technical assistance, designs, drawings, assembly procedures, computer programs, apparatuses, specifications, data, results
and other material, including pre-clinical and clinical trial results, manufacturing procedures and test procedures and techniques,
(whether or not confidential, proprietary, patented or patentable and whether or not Confidential Information) in written, electronic
or any other form now known or hereafter developed, and all Improvements, whether to the foregoing or otherwise, and other discoveries,
developments, inventions, and other intellectual property (whether or not confidential, proprietary, patented or patentable), in
each case, to the extent related to the R&D Agreement Technology and any R&D Agreement Product.

 

3.6           "R&D
Agreement Intellectual Property" shall mean any LD R&D Agreement Know-How, R&D Agreement Information and Inventions,
R&D Agreement Confidential Information, Patent, Patent Rights or Trademark that at any applicable time after the date of the
execution of this Agreement which during the Term is Controlled by LD that is necessary or useful to make, use, sell, offer for
sale, import or export any R&D Agreement Product.

 

3.7           "R&D
Agreement Products" shall mean the technologies, products, items, improvements, inventions and ideas, to be defined by
statements of work and planned developments communicated in writing in the course of this Agreement which are the subject of LD's
development and other activities under the terms of this Agreement (which may include the "Product" including without
limitation "Product Accessories" as defined by the Initial Development Agreement). The selection of the R&D Agreement
Products shall be determined by PMI, as the customer. 

 

    2 

     

    

 

3.8           "R&D
Agreement Specifications" shall mean the minimum specification for the manufacture and performance of any R&D Agreement
Product, which shall be established by LD and agreed upon by the Parties and documented in the R&D Agreement Development Plan.

 

3.9           "Term"
shall have the meaning set forth in Section 6.

 

4.          R&D
Agreement Development Program.

 

4.1           Purpose
and Scope. The Parties wish to and hereby agree pursuant to the terms hereof to collaborate in the development and commercialization
of R&D Agreement Products. LD under this Agreement will have responsibility for engineering and developing R&D Agreement
Products, subject to the terms hereof. PMI will own all title and rights to all R&D Agreement Intellectual Property. To that
end, the Parties will embark on the R&D Agreement Development Program with each party bearing specified responsibilities, all
as further described herein.

 

4.2           Development
of the R&D Agreement Products. The Parties each agree that they will use Commercially Reasonable Efforts to develop the
R&D Agreement Products as set forth by the R&D Agreement Development Program in view of the specified responsibilities
of each Party under this Agreement. If requested by PMI, LD shall
develop mutually agreeable Specifications for the R&D Agreement Products based on the parameters as set forth in the R&
D Agreement Development Plan and pursuant to the results of activities undertaken during the course of the R&D Agreement Development
Program and will work with PMI to obtain Regulatory Approval for a minimally marketable R&D Agreement Product.

 

4.3           Conduct
of Development Program.

 

4.3.1           LD's
Obligations. LD shall use its good faith business and scientific judgment as applied to commercial development projects, to
allocate sufficient time, effort, equipment and facilities to carry out the R&D Agreement Development Program in accordance
with the timelines set forth therein, including but not necessarily limited to the timeline pursuant to the R&D Agreement
Development Plan. LD shall work diligently, consistent with accepted business practices and legal requirements, to develop the
R&D Agreement Products. LD's obligations shall include without limitation, to the extent requested by PMI, (i) use Commercially
Reasonable Efforts to diligently pursue development of the R&D Agreement Products as indicated through the R&D Agreement
Development Program, (ii) prepare for and initiate manufacturing of the R&D Agreement Products in conjunction with a selected
Third Party manufacturer selected by PMI (iii) support of PMI's efforts to obtain Regulatory Approval for any R&D Agreement
Product, including without limitation by way of creating and preparing all product related material needed in conjunction with
the filing for Regulatory Approval, (iv) advise and assist PMI on negotiations with any proposed third party manufacturer of a
R&D Agreement Product, and (e) advise PMI on PMI's plans for successful commercial product launch and execution.
LD shall conduct its efforts hereunder in strict accordance with all applicable laws, regulations
and guidelines, including without limitation, the requirements for Regulatory Approval. For the avoidance of doubt, LD shall not,
in any capacity, directly or indirectly engage in the marketing or commercial sale of any R&D Agreement Product other than
providing assistance to PMI or an authorized PMI licensee as indicated in this subsection. 

 

    3 

     

    

 

4.3.2           PMI's
Obligations. PMI shall use its good faith business and scientific judgment as applied to commercial development projects, to
allocate sufficient time and effort to carry out its obligations under the R&D Agreement Development Program, including but
not necessarily limited to the timeline pursuant to the R&D Agreement Development Plan. PMI shall promptly evaluate each iteration
of any R&D Agreement Product prototype to enable LO to meet its performance deadlines pursuant to the R&D Agreement Development
Plan and obligations pursuant to Section 4.3.1.

 

4.3.3           Expenses.
Each Party will be responsible for its own expenses, unless agreed otherwise on a case by case basis in advance in writing.

 

4.4           Clinical
Trials and Regulatory Approval.

 

4.4.1           Clinical
Trials. Subject to the terms of the R&D Agreement Development Plan and further pursuant to Section 3.3.1, LO shall, to
the extent requested by PMI (i) use its Commercially Reasonable Efforts to conduct required clinical trials of any R&D Agreement
Product and support PMI's efforts to obtain Regulatory Approval for any R&D Agreement Product and for applicable regulatory
compliance, and (ii) be responsible for all activities related to the development and quality assurance/quality control relating
to a R&D Agreement Product and (c) include PMI in such efforts in a consultative capacity at PMI's sole discretion.

 

4.4.2           Regulatory
Approval. Subject to the terms of the Development Plan and further pursuant to Section 3.3.1, LD shall, to the extent requested
by PMI, use its Commercially Reasonable Efforts to prepare all product related materials needed for Regulatory Approval, including
supporting any Pre-Market Notifications ("510{k)") submitted by PMI to the FDA, and shall have primary responsibility
for: (i) all clinical data and reports related to R&D Agreement Product studies, and (b) data support for all Regulatory Approvals
covering any R&D Agreement Product. LD and PMI shall consult with each other, to the extent determined by PMI, with respect
to communications with the FDA, and LD shall provide copies to PMI of all proposed FDA data and other material for submission to
FDA, as much as in advance of the proposed submission or delivery as reasonably practicable. The Parties shall cooperate in good
faith with respect to all such submissions and meetings with the FDA relating to regulatory approval of the R&D Agreement Product.
All regulatory dossiers or other regulatory filings pursuant to this Section 4.4.2 for the R&D Agreement Product shall be the
sole and exclusive property of PMI.

 

4.5           PMI
Site Visits to LD. Upon the delivery of five (5) days prior written notice, PMI shall have the right to visit the facilities
of LD to meet with LD representatives for any purpose whatsoever relating to this Agreement and/or the R&D Agreement Development
Program, including without limitation status conferences, development updates and oversight of the R&D Agreement Development
Program.

 

4.6           Development
Costs. PMI shall pay LD on account of its activities hereunder the monthly amount of One Hundred Twenty Thousand Dollars ($120,000),
with the first payment due to LD on the 1st day of the month of June 2015, with subsequent monthly payments due to LD on the 1st
day of each succeeding month for twenty four (24) months
until the cumulative payment total equals Two Million Eight Hundred Eighty Thousand Dollars ($2,880,000), subject first to the
completion of all commitments and payments due under the Initial Development Agreement. PMI may, at its
sole discretion, accelerate payment of development costs pursuant to this Section 4.6. Any such accelerated payment schedule shall
be memorialized as an amendment to this Agreement.

 

    4 

     

    

  

4.7           Regulatory
Inspections. LD, or any entity contracted by LD to manufacture a R&D Agreement Product, shall cooperate with any inspection
of its facilities by a regulatory agency or authority, including but not limited to any inspection by such regulatory agency or
authority prior to the granting of Regulatory Approval to market the R&D Agreement Products. LD shall notify PMI as soon as
possible of any notification received by LD from any regulatory authority to conduct an inspection of its manufacturing or other
facilities used in the manufacturing, packaging, storage or handling of a R&D Agreement Product, or relating to any claim of
non-compliance with regulatory requirements. Copies of all correspondence and notices relevant to any R&D Agreement Product
to and from the regulatory authority in the Territory will be provided by LD to PMI.

 

4.8           Records.
LD will maintain for the longer of a period of ten (10) years or per regulatory requirements all records generated in the course
of its performance under this Agreement and necessary to evidence compliance with such laws and regulations as are applicable to
the design and manufacture of a R&D Agreement Product. All such records shall be deemed the property of PMI, and a true and
correct copy of any such records shall promptly made available to PMI whenever requested by PMI.

 

4.9           Consultants
and Subcontractors. LD shall, as part of its regular project management communication to PMI, identify any consultant or subcontractor
who is to provide services under this Agreement. Except as may be otherwise approved by PMI, such consultant or subcontractor shall
not be retained unless they have entered into a written agreement with the Parties whereby the consultant or subcontractor agrees
to (i) hereby assign to PMI all rights, title and interest in any intellectual property, know-how and the like (which shall be
deemed LD R&D Agreement Know-How under this Agreement) developed as a result of their providing such services, (ii) agree to
execute any documents and take all actions that are reasonably necessary to perfect such assignment in the future; and (iii) provide
to PMI any licenses in any intellectual property owned, controlled or utilized by such consultant or subcontractor that may be
required in order for PMI to utilize LD R&D Agreement Know-How developed by the consultants or subcontractors as a result of
their providing such services.

 

4.10         Key
Man Life Insurance. LD shall cause Jeffrey Carlisle to consent to PMl's obtaining of key man life or other insurance on Jeffrey
Carlisle, in such amounts and upon such terms as determined by PMI in its sole discretion, and to cause him to take all such actions
as are reasonable and customary in connection therewith.

 

5.          Intellectual
Property Ownership and Related Issues.

 

5.1           Ownership
of Intellectual Property Rights. LD hereby assigns and agrees to assign to PMI all Intellectual Property Rights created or
arising pursuant to or in connection with the performance of this Agreement and the R&D Agreement Development Plan including
without limitation all R&D Agreement Intellectual Property that are conceived, discovered, developed
or otherwise made by or on behalf of LD during the Term of this Agreement (or its Affiliates or its licensors or sublicensees),
whether or not patented or patentable.

 

    5 

     

    

  

5.2           Disclosure
and Assignment. LD shall promptly disclose to PMI in writing, the conception or reduction to practice, or the discovery, development
or making of all Intellectual Property Rights including without limitation all R&D Agreement Intellectual Property created
or arising pursuant to or in connection with the performance of this Agreement and the R&D Agreement Development Plan that
are conceived, discovered, developed or otherwise made by or on behalf of LO during the Term of this Agreement (or its Affiliates
or its licensors or sublicensees), whether or not patented or patentable, and shall, and does hereby, assign, and shall cause its
Affiliates or its sublicensees to so assign, to PMI, without additional compensation, all of their respective rights, titles and
interests in and to any and all of the foregoing. To the extent necessary to assign any such intellectual property rights, LD shall
enter into and execute all reasonable and appropriate assignments, transfers and other agreements, and enter into all agreements
with its employees, contractors, and Affiliates or sublicensees, that are necessary or appropriate to ensure the assignment of
such intellectual property and intellectual property rights to PMI.

 

5.3           Inventorship.
The determination of whether Improvement and/or Information and Inventions are conceived, discovered, developed or otherwise made
by a Party for the purpose of identifying initial proprietary rights (including any patent, trademark, copyright or other intellectual
property rights) therein, shall, for purposes of this Agreement, be made in accordance with applicable United States law.

 

5.4           Patent
Prosecution and Maintenance.

 

5.4.1           Patent
Prosecution. The prosecution, filing and maintenance of all Patent Rights and applications relative to R&D Agreement Intellectual
Property shall be the responsibility of PMI. All decisions with respect to prosecution of the Patent Rights are reserved to PMI.

 

6.          Term
and Termination.

 

6.1           Term.
Unless otherwise terminated pursuant to this Section 6, this Agreement shall remain in full force and effect until the date of
the last payment under Section 4.6 hereof, unless this agreement is earlier terminated in accordance with the following provisions
of this Section 6; provided that no such termination or expiration of this Agreement shall terminate the obligations of the Parties
which have accrued prior to the date of such termination or the provisions hereof which are intended to survive the termination
or expiration of this Agreement.

 

6.2           Termination.

 

6.2.1           Termination
for Material Breach. Each Party shall have the right to terminate this Agreement and its obligations hereunder in the event
of a material breach by the other party, or materially fails to perform, its obligations under this Agreement and fails to cure
such breach or nonperformance within twenty (20) days after receiving from the non-breaching Party written notice thereof, the
non-breaching Party in its sole discretion may terminate this Agreement upon prior notice to the defaulting Party. 

 

    6 

     

    

 

6.2.2           Termination
by Mutual Consent. This Agreement may be terminated by the mutual consent of PMI and LO.

 

6.2.3           Failure
to Close. PMI in its sole discretion may terminate this Agreement in the event that the Closing under the Asset Purchase and
Intellectual Property Transfer Agreement shall fail to occur through no default on the part of PMI.

 

6.2.4           Termination
Upon Insolvency. Termination by the non insolvent or non breaching party in the event of the liquidation or dissolution of
the other party, the filing by or against the other party of a petition in bankruptcy or insolvency, the assignment by the other
party of its assets for the benefit of its creditors, the admission by the other party of its inability to pay its debts as they
come due, the appointment of a receiver or trustee for the assets of the other, or the making of any voluntary arrangement by the
other party with its creditors, which event is not discharged, waived or cured within sixty (60) days after the occurrence thereof.
Without limiting any of any party's rights under any other provision of this Agreement, each party's rights under this Agreement
will include those rights afforded by 11 U.S.C. 365(n) and any successor statute thereto (the "Code"). If
the bankruptcy trustee of a party as a debtor or such party as a debtor-in-possession
rejects this Agreement under 11 U .S.C. 365,
either other party may elect to retain its rights hereunder for the duration of this Agreement and avail itself of all rights and
remedies to the full extent contemplated by this Agreement, 11 U.S.C. 365(n), and any other relevant sections of the Code or other
relevant non-bankruptcy law.

 

6.3           Accrued
Obligations. Notwithstanding any termination under this Section 6, any obligation to pay payments which had accrued or become
payable as of the date of termination shall survive termination of this Agreement.

 

6.4           Ownership
of Intellectual Property. No termination of this Agreement shall modify, limit or affect PMI's ownership interest in the Intellectual
Property Rights and other rights provided for by Article V hereof nor limit or affect LD's obligations to PMI with respect thereto.

 

6.5           Force
Majeure Events. If either
Party is prevented from performing any of its obligations hereunder (other than payment obligations) due to any cause which is
beyond the non-performing Party's reasonable control, including, without limitation, fire, explosion, flood, or other acts of
God; acts, regulations, or laws of any government; war, terrorist act or civil commotion; strike, lock-out or labor disturbances;
or failure of public utilities or common carriers (a "Force Majeure
Event"), such non-performing Party shall not be liable for breach
of this Agreement with respect to such non-performance to the extent such non-performance is due to a Force Majeure Event. Such
non-performance will be excused for as long as such event shall be continuing (whichever period is shorter), provided that the
non-performing Party gives immediate written notice to the other Party of the Force Majeure Event. Such non-performing Party shall
exercise all reasonable efforts to eliminate the Force Majeure Event and to resume performance of its affected obligations as
soon as practicable. Should the event of Force Majeure continue unabated for a period of 60 days or more, the Parties shall enter
into good faith discussions with a view to alleviating its affects or to agreeing upon such alternative arrangements as may be
fair and reasonable having regard to the circumstances prevailing at that time. 

 

    7 

     

    

 

6.6           Survival.
All rights granted and obligations undertaken by the Parties hereunder shall terminate immediately upon the event of any termination
or expiration of this Agreement, except for the following which shall survive according to their terms: Sections 4.8, Article
V, 6.3, 6.4, 6.6, Article VII, Article VIII, and Article IX.

 

7.          Indemnification.

 

7.1           Indemnification
by PMI. PMI hereby agrees to indemnify, hold harmless and defend LD against any and all expenses, costs of defense (including
without limitation attorneys' fees, witness fees, damages, judgments, fines and amounts paid in settlement) and any amounts LD
becomes legally obligated to pay because of any Third Party claim or claims against it to the extent that such claim or claims
(i) arise out of the breach or alleged breach of any representation or warranty by PMI hereunder, or (ii) arise from a Third Party
claim of injury or death or damage to property resulting from such Third Party's use of the R&D Agreement Product and not
caused by LD's negligence or misconduct in the performance of its obligations under this Agreement, or (iii) are due to the negligence
or misconduct of PMI in the promotion, marketing or sale of the R&D Agreement Product; provided that such indemnification
obligation shall not apply to the extent such claims are covered by LD's indemnity set forth in Section 7.2 below.

 

7.2           Indemnification
by LD. LD hereby agrees to indemnify, hold harmless and defend PMI against any and all expenses, costs of defense (including
without limitation attorneys' fees, witness fees, damages, judgments, fines and amounts paid in settlement) and any amounts PMI
becomes legally obligated to pay because of any claim or claims against it to the extent that such claim or claims (i) result from
LD's activities under this Agreement, (ii) arise out of the breach or alleged breach of any representation or warranty by LD hereunder,
(iii) are due to the negligence or misconduct of LD, or (iv) arise from a Third Party claim of injury or death or damage to property
resulting from such Third Party's use of the R&D Agreement Product to the extent caused by LD's negligence or misconduct in
the performance of its obligations under this Agreement; provided that, such indemnification shall not apply to the extent such
claims are covered by PMI' s indemnity set forth in Section 7.1 above.

 

7.3           Procedure.
Each Party's agreement to indemnify, defend and hold the other harmless under Sections 7.1 and 7.2 is conditioned on the indemnified
party (a) providing written notice to the indemnifying party of any claim arising out of the indemnified activities within thirty
(30) days after the indemnified party has knowledge of such claim; (b) permitting the indemnifying party to assume full responsibility
to investigate, prepare for and defend against any such claim; (c) assisting the indemnifying party, at the indemnifying party's
reasonable expense, in the investigation of, preparation for and defense of any claim; and (d) not compromising or settling such
claim with the indemnifying party's written consent. In the event that the parties cannot agree as to the application of Sections
7.1 and 7.2 above to any particular loss or claim, the parties may conduct separate defenses of such claim. Each Party further
reserves the right to claim indemnity from the other in accordance with Sections 7.1 and 7.2 above upon resolution of the underlying
claim, notwithstanding subsection (b) above.

 

    8 

     

    

  

7.4           Insurance
Coverage. Each Party represents and warrants that it is covered and will continue to be covered by a comprehensive insurance
program which covers all of each Party's activities and obligations hereunder. Each Party shall provide the other party with written
notice at least fifteen (15) days prior to any cancellation or material change in such insurance program that reduces coverage
thereunder. Each Party shall maintain such insurance program, or other program with comparable coverage, beyond the expiration
or termination of this Agreement during (i) the period that any R&D Agreement Product produced pursuant to this Agreement is
intended to be used in a clinical trial and (ii) to be sold commercially following Regulatory
Approval.

 

8.          Confidentiality.

 

8.1           Confidential
Information. The Party's rights and obligations with respect to Confidential Information disclosed under this Agreement shall
be governed by the Confidential Disclosure Agreement executed between the Parties dated as February 18, 2014, except as set forth
below.

 

8.2           Authorized
Disclosure. The Parties agree that the terms, but not the mere existence, of this Agreement and the Other Agreements will be
considered Confidential Information of both Parties. Notwithstanding the foregoing, either Party may make disclosures required
by law or regulation, provided prior notice is given to the other Party whenever possible, and may disclose the general terms of
this Agreement and the other Agreements to bona fide potential corporate partners, and to financial underwriters, prospective investors,
acquirers and merger partners, and other Parties with a need to know such information. Any such disclosures, and any disclosure
of the development of R&D Agreement Products or other developments under this Agreement, including but not limited to press
releases, will be reviewed and consented to by each party prior to such disclosure. Such consent shall not be untimely or unreasonably
withheld by either party. All such disclosures shall be made only to persons under an obligation of confidentiality.

 

Notwithstanding
any other provision of this Agreement, each party may disclose the other party's Confidential Information if such disclosure:

 

(a)          is
in response to a valid order of a court or other governmental body of the United States or a foreign country, or any political
subdivision thereof; provided, however, that the responding party shall first have given notice to the other party hereto and shall
have made a reasonable effort to obtain a protective order requiring that the Confidential Information so disclosed be used only
for the purposes for which the order was issued;

 

(b)          is
otherwise required by law or regulation, including SEC related

documents; or

 

(c)          is
otherwise necessary to file or prosecute patent applications, prosecute or defend litigation or comply with applicable governmental
regulations or otherwise establish rights or enforce obligations under this Agreement, but only to the extent that any such disclosure
is necessary.

 

    9 

     

    

  

8.3           Return
of Confidential Information. Upon termination of this Agreement, each Party shall use diligent efforts (including without limitation
a diligent search of files and computer storage devices) to return all Confidential Information received by it from the other party,
provided, however, that the receiving party may keep one copy of such Confidential Information for legal archival purposes. Access
to the copy so retained by the receiving party's legal department shall be restricted to counsel and such Confidential Information
shall not be used except in the resolution of any claims or disputes arising out of this Agreement.

 

8.4           Publications.
Except as required by law, neither party shall publish or present the results of studies carried out with respect to R&D Agreement
Products without the opportunity for prior review by the other party. Each party shall provide to the other the opportunity to
review any proposed abstracts, manuscripts or presentations which relate to R&D Agreement Products at least thirty (30) days
prior to their intended submission for publication and such submitting party agrees, upon written request from the other party,
not to submit such abstract or manuscript for publication or to make such presentation until the other party is given a reasonable
period of time to seek patent protection for any material in such publication or presentation that it believes is patentable.

 

9.          Miscellaneous.

 

9.1           Agency.
Neither party is, nor will be deemed to be, an employee, agent or legal representative of the other party for any purpose.
Neither party will be entitled to enter into any contracts in the name of, or on behalf of the other party, nor will a party be
entitled to pledge the credit of the other party in any way or hold itself out as having authority to do so. This Agreement is
an arm's-length agreement between the parties and shall not constitute or be construed as a joint venture.

 

9.2           No
Third Party Beneficiaries. Except as specifically provided in this Agreement, this Agreement shall not confer any rights or
remedies upon any Person other than the Parties and their respective successors and permitted assigns.

 

9.3           Entire
Agreement. Except as agreed to by the parties in writing, this Agreement, and Exhibits hereto, together with the Other Agreements,
constitute the entire agreement among the Parties and supersedes any prior understandings, agreements or representations by or
among the Parties, whether written or oral, with respect to the subject matter hereof.

 

9.4           Successors
and Assigns. Neither this Agreement nor the rights or obligations of the Parties under this Agreement shall be assignable without
the written consent of the non assigning Party and any such purported assignment without the written consent of the non assigning
Party shall be void and without effect; provided, however that PMI may assign its rights hereunder at the closing of a sale of
all or substantially all of the assets relating to the Technology or a change of control transaction in which the holders of the
voting securities of PMI immediately before such transaction own less than 50% of the voting securities of the surviving entity
immediately after giving effect to such transaction. Except as otherwise provided herein, this Agreement and all covenants and
agreements contained herein shall be binding upon and inure to the benefit of the Parties hereto, their permitted successors, permitted
representatives and permitted assigns.

 

    10 

     

    

  

9.5           Severability.
Any term or prov1s10n of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or the validity
or enforceability of the offending term or provision in any other situation or in any other jurisdiction. In the event that any
term or provision of this Agreement would, under applicable law, be invalid or unenforceable in any respect, each Party intends
that such provision will be construed by modifying or limiting it so as to be valid and enforceable to the maximum extent compatible
with, and possible under, applicable law. For any such invalid or unenforceable provision, the Parties shall use commercially reasonable
efforts to negotiate a substitute valid and enforceable provision while preserving to the fullest extent possible the intent and
agreements of the Parties set forth herein.

 

9.6          Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original but all of which together
shall constitute one and the same instrument, notwithstanding variations in format or file designation which may result from the
electronic transmission, storage and printing of copies of this Agreement from separate computers or printers. Facsimile signatures
and signatures transmitted via PDF shall or by any other electronic means shall be treated as original signatures.

 

9.7           Headings.
The Section headings contained in this Agreement are inserted for convemence only and shall not affect in any way the meaning or
interpretation of this Agreement.

 

9.8           Notices.
All communications between LD and PMI relating to this Agreement and the subject matter hereof shall be directed to the persons
designated to receive notices set forth in this Section 9.8 or such other individuals as they may designate. All notices, requests,
demands, Claims and other communications under this Agreement shall be in writing. Any notice, request, demand, Claim or other
communication under this Agreement shall be deemed duly given (i) when delivered personally to the recipient, (ii) upon confirmation
of facsimile (with a confirmation copy to be sent by overnight delivery) or (iii) one business day following the date sent when
sent by overnight delivery, at the following address:

 

lf to LD:

Jeffrey Carlisle, Member

Leveraged Developments
LLC

75 Congress Street

Portsmouth, NH 03801

 

lf to PMI:

Jerry Ruddle, President
and COO

Point Medical, Inc.

665 Martinsville
Road, Suite 219

Basking Ridge, NJ 07920

 

Either
Party may change the named party and address to which notices, requests, demands, Claims and other communications under this Agreement
are to be delivered by giving the other Party notice in the manner herein set forth. 

 

    11 

     

    

 

9.9           Governing
Law. This Agreement shall be governed by and construed in accordance with the domestic laws of the State of Delaware without
giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the State of Delaware. The Parties hereto submit to the
exclusive jurisdiction of the State and Federal courts in the State of Delaware and New Castle County with respect to any dispute.

 

9.10         Amendments
and Waivers. No amendment of any provision of this Agreement shall be valid unless the same shall be in writing and signed
by PMI and LD. No waiver by any Party of any provision of this Agreement or any default, misrepresentation or breach of warranty
or covenant under this Agreement, whether intentional or not, shall be valid unless the same shall be in writing and signed by
the Party making such waiver nor shall such wavier be deemed to extend to any prior or subsequent default, misrepresentation or
breach of warranty or covenant under this Agreement or affect in any way any rights arising by virtue of any prior or subsequent
such occurrence. Any consent, waiver or amendment signed by LD shall be deemed the consent, waiver or amendment of LD and its Affiliates
and any consent, waiver or amendment signed by PMI shall be deemed the consent, waiver or amendment of PMI's and its Affiliates
pursuant hereto.

 

9.11         Expenses.
Except as expressly stated otherwise, each of the Parties will bear his or its own costs and expenses (including legal and accounting
fees and expenses) incurred in connection with this Agreement and transactions contemplated hereby and thereby.

 

9.12         Export
Control. This Agreement is made subject to any restrictions concerning the export of R&D Agreement Products or technical
information from the United States of America or other countries that may be imposed upon or related to PMI or LD from time to
time ach party agrees that it will comply with all applicable export laws and regulations in connection with its activities under
this Agreement.

 

IN
WITNESS WHEREOF, PMI and LD intending legally to be bound hereby have caused this Development Agreement to be duly executed as
of the date first above written.

 

[Signature
Page Follows] 

 

    12 

     

    

 

	POINT MEDICA L, INC.	 
	By:	/s/ Jerry Ruddle	 
	Name:	Jerry Ruddle	 
	Title;	President and COO	 
	 	 	 
	LEVERAGED  DEVELOPM ENTS LLC’	 
	 	 	 
	By:	/s/
    Jeffrey Carlisle	 
	Name;	Jeffrey Carlisle	 
	Title:	Member

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