Document:

CONFIDENTIAL
TREATMENT

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED AS TO CERTAIN PORTIONS OF THIS DOCUMENT. EACH SUCH PORTION, WHICH HAS BEEN OMITTED HEREIN AND REPLACED
WITH AN ASTERISK [*], HAS BEEN FILED SEPERATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

SUPPLY
AGREEMENT

 

THIS
SUPPLY AGREEMENT (this “Agreement”) is made and entered into as of September_1_, 2017 (the “Effective
Date”), by and between Polyzen, Inc., a North Carolina corporation with its principal office located at 1041 Classic
Road, Apex, North Carolina 27539 (“Polyzen”), and Motus GI Medical Technologies Ltd., an, Israeli company
with its principal office located at Keren Hayesod 22, Tirat Carmel, Israel, 3902638 (“Company”).

 

RECITALS

 

WHEREAS,
Company is in the business of marketing and selling Food and Drug Administration (“FDA”) cleared or approved
medical devices;

 

WHEREAS,
Polyzen is in the business of developing, manufacturing and supplying products related to Company’s business; and

 

WHEREAS,
Polyzen desires to develop manufacture and supply to Company, and Company desires to purchase from Polyzen, the Products (as defined
below) according to the terms and conditions set forth herein.

 

NOW
THEREFORE, in consideration of the mutual covenants and promises contained herein, and of other good and valuable consideration,
the receipt and sufficiency of which hereby are acknowledged, Polyzen and Company hereby agree as follows:

 

1. Definitions.

 

1.1 “Affiliate”
means with respect to any party, any person/entity which, directly or indirectly through one or more intermediaries, controls,
is controlled by, or is under common control with, such party. A person/entity shall be deemed to control a corporation (or other
entity) if such person or entity possesses, directly or indirectly, more than fifty percent (50%) of the outstanding voting securities
or other equity or voting interest of such corporation (or other entity) or has the power to vote, by contract or otherwise, or
to control in fact, the management decisions of such entity.

 

1.2 “Product”
or “Products” shall mean those products consisting of (i) component parts and packaged assemblies developed
and manufactured by Polyzen; and (ii) fully assembled Medical Devices (as defined below) assembled by Polyzen, in each case, in
accordance with the Specifications, and described in, Exhibit A attached hereto and incorporated herein by reference, which
may be modified from time to time to add or remove products, in each case, with the written approval of an authorized representative
of each party hereto. The parties shall negotiate in good faith with regard to any appropriate written amendment of, or addendum
to, this Agreement or any exhibit attached hereto, to accommodate such additional products, as the case may be, and to modify
the Specifications, pricing and delivery requirements, as applicable, therefor.

 

1.3 “Medical
Device” shall mean the FDA cleared device Pure-Vu Product manufactured by Company.

 

1.4 “Regulatory
Authority” shall mean an authorized agent of any federal, state or local or international regulatory agency, department,
bureau or other governmental entity, including the FDA, that is responsible for issuing approvals, licenses, registrations or
authorizations necessary for the production, use, storage, import, transport or sale of Products in any jurisdiction as part of
the Services.

 

1.5 “Specifications”
shall mean the written specifications for the Products set forth in Exhibit A attached hereto.

 

    	 

     

    

 

2. Manufacture
and Supply of Products. Subject to the terms and conditions set forth herein, Polyzen shall manufacture and assemble Products
in accordance with the Specifications, and supply and deliver (collectively, the “Services”) to Company the
Products in such quantities as are required to fulfill Purchase Orders (as defined below) issued by Company or its Affiliates
from time to time. Any use of secondary suppliers or other outsourcing of the Services to third parties by Polyzen shall be approved
in writing in advance by Company and set forth in Exhibit C attached hereto and incorporated herein by reference. Polyzen
shall ensure that any approved secondary suppliers and other third parties are bound by written agreements with substantially
similar provisions as contained herein; provided that with respect to suppliers of components that are “off-the-shelf”,
Polyzen’s obligation under this section shall be to ensure that there are quality agreements in place with such suppliers
that ensure that Polyzen can meet its obligations under this Agreement. In the event that Polyzen subcontracts all or part of
the Services hereunder to a third party supplier or other third party, Polyzen shall be responsible for such secondary supplier’s
or other third parties’ compliance with the terms of this Agreement and will retain primary liability vis-à-vis Company
for the performance of all obligations of such secondary suppliers and other third parties.

 

2.1 Based
on the quality control standards developed mutually by the parties and incorporated herein by reference in the Quality Agreement
attached hereto as Exhibit B, which shall meet but in no event exceed the applicable standards set forth in ISO 9001, ISO
13485 and 21 C.F.R. Part 820 for contract manufacturers, Polyzen shall manufacture the Products in accordance with the Specifications
and shall perform all quality control and testing of the Products to ensure that they comply with the Specifications. To the extent
that any specialized tooling or equipment (as outlined in Exhibit D attached hereto and incorporated herein by reference)
is necessary to provide the Services, the parties shall negotiate in good faith the costs of such specialized tooling and/or equipment
and agree on the use and ownership of such tooling and/or equipment in writing in advance in accordance with Section 10.8
of this Agreement. At or prior to the purchase of a new tool, Polyzen and Company will discuss in good faith the cost
and payment options for such tools. Exhibit D attached hereto lists the owner of, and the purchase price paid for, each
tool.

 

2.2 Purchase
Orders. Polyzen’s performance of the Services shall be subject to Polyzen’s receipt from Company or its Affiliates,
and Polyzen’s written acceptance (except as provided below), of a written purchase order, each of which will set forth the
requested quantity of Product, price per the terms of this Agreement, and the desired delivery dates (each, a “Delivery
Date”), for the Products then ordered (each, a “Purchase Order”). Company shall have the right, but
not the obligation, to deliver Purchase Orders as provided herein. Each Purchase Order shall cover a period of three (3) months
(the “Order Period”) and, except for the Initial Purchase Order, which shall be delivered as set forth in Section
2.4.1 below, shall be delivered by no later than 5:00 p.m. (EST) on the last business day of the second (2nd) month
of the then current Order Period. Polyzen will consider in good faith accepting any Purchase Order delivered by Company or its
Affiliate at any other point. Each Purchase Order shall include the requested amount of Product to be delivered in each month
of the subsequent Order Period (each, a “Monthly Order”). Within five (5) business days after Polyzen’s
receipt of each Purchase Order, Polyzen shall notify Company in writing either of its acceptance of such Purchase Order or of
its rejection thereof and the reason therefor. Any Purchase Order that reflects Monthly Orders that are within twenty percent
(20%) of the amount forecasted for such month in the most recent Forecast (as defined below) for the given period shall be deemed
accepted by Polyzen. Except as provided in the previous sentence, no Purchase Order submitted by Company shall be deemed to be
accepted by Polyzen unless and until confirmed in writing by an authorized representative of Polyzen. Polyzen shall deliver all
Products pursuant to an accepted Purchase Order on the desired Delivery Dates specified in the subject Purchase Order, provided
that such date is no less than forty-five (45) days from the date of the Purchase Order is received by Polyzen. Company, at its
option, may upon prior written notice to Polyzen, delay the acceptance of any Monthly Order in an Order Period for up to three
(3) months (an “Order Delay”). Written notice of an Order Delay must be given to Polyzen at least fifteen (15)
calendar days in advance of the subject Delivery Date and must include new Delivery Dates for the delayed delivery. Products subject
to an Order Delay will be invoiced as follows: 50% of the total purchase price for the subject Products on the original Delivery
Date, as provided in the subject Purchase Order; and the remaining 50% of the purchase price at time of shipment of the Products
subject to the Order Delay. By way of example, if a Purchase Order for the third calendar quarter of 2017 specified a Monthly
Order of 100 units of Product in July 2017, Company will have the option of having the subject 100 units of Product delivered
through October 2017 without incurring any penalty. Further, any subsequent Monthly Orders will be subject to the same delivery
standards; the Monthly Orders for August 2017 and September 2017 could then be similarly delayed as requested by Company and delivered
through November 2017 and December 2017 respectively.

 

2.3 Order
Interruption. In the event that the Company desires to deliver a Purchase Order subsequent to a calendar quarter in which
there have not been any deliveries of Product from Polyzen, Company shall provide Polyzen not less than sixty (60) days’
notice of the next anticipated Delivery Date and a restart fee equal to $50,000 to resume production of the Products.

 

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2.4 Forecasts.

 

		2.4.1	Rolling
                                         Forecasts. Company shall provide Polyzen with a quarterly, rolling, written non-binding
                                         twelve (12) month forecast of its purchase requirements for the Products (each, a “Forecast”).
                                         Company’s initial Forecast shall be provided to Polyzen on the Effective Date.
                                         Company’s initial Purchase Order (the “Initial Purchase Order”)
                                         shall reflect the initial three months of the Forecast and shall be subject to the terms
                                         and conditions as provided in Section 2.2 of this Agreement. Thereafter,
                                         Company shall deliver to Polyzen its updated Forecast by no later than 5:00p.m. (EST)
                                         of the last business day of the second (2nd) month of the then current Order
                                         Period. For example, since the Effective Date of this Agreement is in July 2017, the
                                         initial Forecast delivered on the Effective Date would cover August 2017 through July
                                         2018. Polyzen will use commercially reasonable efforts to maintain sufficient production
                                         capacity and redundancy to satisfy Company’s then forecasted requirements for the
                                         Products, which, in no event, will equal less than three (3) months of orders plus twenty
                                         percent (20%) upside flexibility.

 

		2.4.2	Material
                                         Planning Meeting. Within five (5) business days of receipt of a Forecast, Company
                                         and Polyzen shall have a materials planning meeting to determine the appropriate volume
                                         of raw materials to order. Based on the determined volumes, Polyzen will place purchase
                                         orders with vendors to obtain the appropriate level of pricing and lead times. Upon receipt
                                         and acceptance of all raw materials, Polyzen will invoice Company for raw materials as
                                         set forth in Section 3.1. Polyzen shall ensure that all raw materials are of good quality,
                                         free from defects, meet applicable specifications, are sourced in accordance with applicable
                                         law and fit for the purpose intended prior to acceptance. In the event of termination
                                         or expiration of this Agreement, other than a termination of this Agreement by Company
                                         pursuant to Section 8.2 or 8.4 below, all non-cancellable purchase orders
                                         to vendors or sources component manufacturers will be binding and paid for by Company
                                         with no mark-up by Polyzen; provided that in the event of a termination pursuant to Section
                                         8.4 below as contemplated in this sentence, the Company will be obligated to
                                         pay for such non-cancelable purchase orders to the extent provided under Section
                                         8.5(a). Such payments will be subject to the invoicing and payment provisions
                                         set forth in Section 3 below.

 

2.5 Acceptance
and Rejection of Products. Upon Company’s receipt of each delivery of Product delivered in accordance with the terms
and conditions set forth herein, Company shall inspect such Product for non- conformance, defects and damages as per its Specifications
(“Non-conforming Products”) and furnish to Polyzen in a reasonably detailed writing any bona fide claim Company
has in connection with such Non-conforming Products within thirty (30) days after its receipt thereof (“Non-conforming
Products Notice Period”). Failure to give written notice within the Non-conforming Products Notice Period shall constitute
acceptance of Products by Company as delivered, except in the case of latent Non-conforming Products that: (i) would not have
been revealed by a timely inspection in accordance with customary and reasonable procedures (“Latent Non-Conforming Products”),
and (ii) are the subject of a written notice to Polyzen in reasonable detail within seven (7) business days of Company’s
initial knowledge thereof (“Latent Non-conforming Products Notice Period”), provided however that COMPANY shall
provide notice of such Latent Non-Conforming Products no later than the shelf-life of the product as defined in the FDA approved
Product labeling. If Company submits a claim to Polyzen within the Non-conforming Products Notice Period or the Latent Non-conforming
Products Notice Period, as applicable, Polyzen will, promptly upon receipt of such claim, contact Company to discuss and evaluate
the validity of such claim. At Polyzen’s sole discretion, it may request that Company deliver to Polyzen a sample of the
potentially defective Product for evaluation. If, upon concluding its evaluation of such Product, Polyzen reasonably determines
that such Product is Non-conforming Product, Polyzen shall send Company a return material authorization, and at its sole expense,
arrange for, and accept from Company, the return of any Non-conforming Product and ship to Company compliant, non-damaged and
non-defective Product as replacement for such returned Non-conforming Product. If Polyzen disagrees with Company’s determination
that a Product is a defective Non-conforming Product, the parties will first use good faith efforts to settle such dispute within
twenty (20) business days of Company’s claim. If the parties are unable to resolve such dispute within such twenty (20)-business
day period, such Product shall be submitted to a mutually acceptable third party testing service, which shall determine whether
such Product meets the Specifications, and the parties agree that such testing service’s determination shall be final and
binding on the parties. The party against whom the testing services rules shall bear all costs of the third party testing service.
If the third party testing service determines that the Products are Non-conforming Products, Polyzen shall send Company a return
material authorization, and at its sole expense, arrange for, and accept from Company, the return of any non-compliant, damaged
or defective Non-conforming Product and ship to Company compliant, non-damaged and non-defective Product as replacement for such
returned Non-conforming Product. In the event Polyzen becomes aware that any Product supplied may be Non-conforming Products despite
quality assurance activities, Polyzen shall immediately notify Company in writing.

 

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2.6 Change
in Specifications. From time to time during the Term (as defined below), either party may propose modifications to the Specifications,
including, without limitation, modifications that may enhance the Products’ performance, safety or reliability, or that
may make it easier or more economical to manufacture, handle or repair the Products, or that otherwise may be an improvement thereof.
All such changes shall be agreed to in accordance with Section 10.8 of this Agreement. Such proposals shall be made in writing
describing the modification in reasonable detail. Any such proposal by Polyzen shall also include a written estimate of the resulting
change in the price, if any, for the Product affected by such modification. If Polyzen receives a proposal from Company to modify
the Specifications, Polyzen shall promptly provide Company with a written estimate of the resulting change in the price, if any,
for the Product affected by such modification. The parties shall negotiate in good faith with regard to any appropriate written
amendment of, or addendum to, this Agreement or any exhibit attached hereto, to accommodate such agreed to modifications, as the
case may be, and to modify the pricing and delivery requirements, as applicable, therefore.

 

2.7 Technology
Transfer. Subject to the terms and conditions set forth herein, Polyzen agrees that it will transfer to Company or its designee
such intellectual property or other information as is necessary for Company or its designee to manufacture the Products and provide
such other reasonable assistance to be billed at Polyzen’s then current FTE rate, and Company agrees to pay such FTE rates
and, in the event such transfer includes Polyzen’s Confidential Information and/or Polyzen’s Background Intellectual
Property, the compensation described herein, all in furtherance of an efficient and smooth transfer of the production of the Product
(a “Technology Transfer”); provided that, in the event that Polyzen terminates this Agreement under Section
8.2 below, it will have no obligation in connection with the Technology Transfer. Company may request a Technology Transfer
at any time during the Term (provided Company is not then in breach of any term or condition set forth herein) or upon the expiration
or termination of this Agreement for any reason (except as set forth in the proviso to the previous sentence). Company shall provide
Polyzen with not less than thirty (30) days’ prior written notice of a request for a Technology Transfer. In the event that
any Polyzen’s Background Intellectual Property is included in the Technology Transfer, the Parties shall negotiate in good
faith fair compensation for Polyzen in respect of any licenses granted by Polyzen in connection with such Technology Transfer.
Polyzen shall not incorporate any Polyzen’s Background Intellectual Property in the development, manufacture or supply of
Products in a manner that would restrict Company’s freedom to develop, manufacture or commercialize a Product without a
license from Polyzen without first receiving Company’s written consent. In no event will Polyzen will be responsible for
any equipment or tooling replacement costs or material costs associated with such Technology Transfer.

 

3. Pricing;
Payment Terms; Title.

 

3.1 Pricing
and Payment Terms. The price payable by Company or its Affiliates, as the case may be, to Polyzen for each Product purchased
during the Term (as defined below) is set forth in Exhibit C attached hereto and incorporated herein by reference. Company
will pay Polyzen for the Products purchased according to the prices set forth in Exhibit C attached hereto. Polyzen shall
invoice Company for the Product upon shipment. Invoices shall be submitted by e-mail to the following address: finance@motusgi.com.
All payments for undisputed invoices are due thirty (30) days from the date of the e-mail containing the invoice. In the event
Company disputes one or more items in an invoice, such dispute must be in good faith, and Company will pay the undisputed portion
within thirty (30) days from the date of the e- mail containing the invoice and notify Polyzen in writing within ten (10) days
of receipt of an invoice of the items being disputed and the basis therefor. The parties will use good faith efforts to resolve
any such disputes within twenty (20) days. Once resolved, payment will be made by Company within twenty (20) days from the date
on which resolution was reached by the parties. Any payment not received by Polyzen by the due date may be subject, at Polyzen’s
sole discretion, to a late fee equal to one and one half percent (1.5%) (or the maximum rate permitted by law) of the amount then
due, for each month overdue. Also, Polyzen may, at its election, discontinue, terminate or suspend the Services without incurring
any liability to Company, provided that Polyzen provides written notice to Company at least seven (7) business days in advance
of any discontinuation, termination or suspension of Services. For amounts outstanding after sixty (60) days from the date of
the e-mail containing the invoice therefor, Company shall be responsible for, and agrees to pay, reasonable costs and expenses
of collection, including, but not limited to court and reasonable attorneys’ fees and expenses. Prices do not include any
governmental taxes (including, without limitation, sales, use, excise, withholding, consumption or other VAT), or duties imposed
by governmental authorities that are applicable to the import or purchase of the Products, and Company shall bear all such taxes
and duties.

 

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3.2 Price
Adjustments. During the twelve (12)-month period that starts on the Effective Date, the parties shall undertake a review of
pricing for the Products once every ninety (90) days (“Quarterly Pricing Review”) beginning on the first business
day that is no less than fifteen (15) days prior to the ninety (90)-day anniversary of the Effective Date, considering all relevant
costs to Polyzen reflected in determining the pricing including, but not limited to, labor costs, material and supplier component
costs (“Pricing Review Criteria”), and to use commercially reasonable efforts to reach agreement on any future
pricing adjustments, reflecting both reductions and increases in cost, (“Pricing Adjustment(s)”). After the
twelve (12)-month anniversary of the Effective Date, the parties shall undertake an annual pricing review based on the Pricing
Review Criteria beginning on the first business day that is no more than thirty (30) days before the end of each subsequent twelve
(12)-month anniversary of the Effective Date (“Annual Pricing Review”). Any Pricing Adjustments agreed to by
the Parties in a Quarterly Pricing Review or an Annual Pricing Review shall become effective when agreed to in writing in an amendment
to Exhibit C in accordance with Section 10.8 of this Agreement. Polyzen shall make available to Company all
supporting documentation reasonably necessary to calculate any Pricing Adjustments including labor costs and material and supplier
component costs and will reasonably cooperate with Company in negotiating any Pricing Adjustments. For clarity sake, any future
Pricing Adjustments resulting in an increase to Company will be limited to situations where the underlying documented costs to
Polyzen increased. Polyzen agrees that any price increase associated with Polyzen labor costs shall be capped at two percent (2%);
any agreed to reduction in the then current pricing set forth in Exhibit C shall be retained by Company provided Company
pre-purchases inventory as outlined in Section 2.4.2 above. If Polyzen purchases inventory, such increases / decreases
and mark-ups will be reasonably negotiated with Company.

 

3.3 Shipping
Terms and Title to Product. All standard shipments of Product shall be shipped (via air or water) F.O.B. Origin using the
Company’s Shipping Account Number. All shipments shall be accompanied by a packing slip which describes the Products and
states the Purchase Order number. Title and risk of loss with respect to any shipment of Products shall pass to the Company or
its Affiliates after delivery of the shipment by Polyzen to the agreed upon carrier. Polyzen shall assist Company, at Company’s
risk and expense, in obtaining any required export or import license or other official authorization necessary for the export
from the United States of Products imported to Israel or such other location designated in writing by Company If there is any
conflict or inconsistency between this Agreement and any Purchase Order, Purchase Order release, confirmation, acceptance or any
similar document, the terms of this Agreement shall govern.

 

4. Confidentiality;
Intellectual Property.

 

4.1 Restrictions
on Use and Disclosure of Confidential Information. Any Confidential Information (as defined below) of a party shall: (i) be
maintained by the receiving party in strict confidence using the same degree of care such party would use to protect its own Confidential
Information (but in any event, using no less than a reasonable degree of care); (ii) not be disclosed, directly or indirectly,
to any third party; and (iii) not be used for any purpose not expressly set forth in this Agreement; provided, however, that the
parties may disclose Confidential Information to their respective employees and agents requiring access to such information for
purposes of this Agreement, so long as, prior to such disclosure, each such person: (a) is advised of his/her obligation under
this Section 4.1; and (b) shall have entered into a written agreement with confidentiality and non-use restrictions,
which are at least as restrictive as those restrictions contained in this Section 4.

 

4.2 Definition
of Confidential Information. “Confidential Information,” means all confidential, non-public or proprietary
information that is disclosed or made available by one party to the other party in connection with this Agreement, that is labeled
as “confidential” or with a similar designation, or that the receiving party should reasonably know if confidential
or proprietary under the circumstances of disclosure, including, without limitation, all inventions, discoveries, improvements,
developments, ideas, know-how, trade secrets, technical and non-technical data, specifications, formulae, compounds, formulations,
assays, methods, processes, techniques, practices, procedures, manufacturing techniques, designs, works of authorship, trade names,
logos and other intellectual property, whether or not patentable or protectable by copyright or trademark, business and product
plans, research and development plans or results, and sales, marketing, financial and pricing information, in each case, whether
disclosed or made available in visual, oral, written, electronic, graphic or any other form. Confidential Information includes
all copies, reproductions, notes and repositories thereof or based thereon, whether in written, electronic, graphic or any other
form, including in the form of samples. Confidential Information shall not include any information that:

 

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(a) at
the time of disclosure is/was generally available to the public; or

 

(b) after
disclosure becomes generally available to the public, except through breach of this Agreement by the receiving party; or

 

(c) is/was
already possessed by the receiving party, as evidenced by its written records, predating receipt thereof from the disclosing party,
so long as the receiving party did not receive such information directly or indirectly from a third party under an obligation
of confidentiality to the disclosing party; or

 

(d) is/was
independently developed by or on behalf of the receiving party, as evidenced by written records, without direct or indirect use
of any Confidential Information of the disclosing party and without access to or knowledge of any Confidential Information of
the disclosing party; or

 

(e) is
required by law to be disclosed; provided, however, that receiving party shall promptly provide the disclosing party with written
notice of such legal requirement and shall cooperate with the disclosing party to seek and obtain a protective order or other
appropriate remedy prior to the disclosure of such Confidential Information.

 

4.3 Return
of Confidential Information. All Confidential Information and copies and reproductions thereof (in whatever form, including
information stored on readable media) shall be promptly returned to the disclosing party upon the expiration or termination of
this Agreement for any reason, or at any time at the disclosing party’s request, except one copy of it can be retained for
archival purposes. All information related to the production of Products that is not Polyzen’s Background Intellectual Property
shall be deemed Confidential Information of Company regardless of the party that discloses such Confidential Information.

 

4.4 Injunctive
Relief. Each party acknowledges and agrees that any breach by the other party of any provision of this Section 4
would result in irreparable harm to the non-breaching party for which money damages would be an inadequate remedy and, therefore,
agrees that the non-breaching party shall be entitled to injunctive relief to prevent or restrain any breach or threatened breach
of the provisions of this Section 4, in addition to any other remedies available to the non-breaching party at law
or in equity.

 

4.5 Intellectual
Property. Except to the extent set forth herein, all right and title to any inventions, improvements or discoveries (“Inventions”),
whether patentable or not, developed, discovered, designed, produced or manufactured by Polyzen, any of its agents, employees
or subcontractors or by Company in connection with its obligations under this Agreement or using Confidential Information of Company,
shall be and remain the exclusive property of the Company, upon Polyzen’s receipt of payment for Services performed in connection
therewith; provided, however, that inventions, ideas, know how, data, intellectual property, improvements and discoveries that
are developed, discovered, designed, conceived of, produced or manufactured by Polyzen: (i) before the Term; (ii) during the Term
and outside of the scope of this Agreement; and (iii) during the Term in connection with the performance of its obligations hereunder
but, in each case that are not unique to the Products, which includes, for illustrative purposes, certain intellectual properties,
processes, and improvements relating to Polyzen’s business developed before or during the Term without the use of Company’s
Confidential Information or Company Intellectual Property (as defined below), in each case, as evidenced by Polyzen’s records,
shall be and remain the property of Polyzen, including such intellectual property used in connection with the Services as of the
Effective Date as is outlined in Exhibit E attached hereto (collectively, “Polyzen’s Background Intellectual
Property”). In connection with Polyzen’s Background Intellectual Property, and upon Company’s payment to
Polyzen of all then outstanding amounts due in accordance herewith for Products delivered by Polyzen, Polyzen grants to Company
a limited, non-exclusive, non-sub licensable, fully-paid, royalty-free license to use Polyzen’s Background Intellectual
Property solely to the extent comprising, and only in connection with, Product delivered to Company hereunder. Except for such
license or as Polyzen may agree otherwise in writing, no right, title or interest in or to the Polyzen’s Background Intellectual
Property is granted by Polyzen to Company, whether expressly, by implication, estoppel, or otherwise. Company hereby agrees not
to derive or attempt to derive by reverse engineering, disassembling, decompiling or otherwise, any portion of Polyzen’s
Background Intellectual Property. If Company requests, and at Company’s expense, Polyzen will provide Company with all reasonable
assistance to obtain patents, and other intellectual property protection on such Inventions, except to the extent comprising Polyzen’s
Background Intellectual Property, including procurement of written assignments and title commitments, in forms acceptable to Company,
from all affiliates, personnel and agents of Company. Polyzen acknowledges and agrees that Company has the exclusive right to
file patent applications and own patents in connection with any Inventions to the extent not comprised of Polyzen’s Background
Intellectual Property. Polyzen shall be free to use any Invention that it develops, discovers, designs, produces or manufacturers
for the sole purpose of fulfilling its obligation under this Agreement. Polyzen shall promptly disclose all Inventions pertinent
to the Products to Company.

 

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4.6 Company
Intellectual Property. Intellectual property, processes and improvements relating to Company’s business and/or the Products
or production of the Products, including all Inventions, in each case developed before or during the Term by Company and/or Polyzen
or its agents, employees or subcontractors and that are not Polyzen’s Background Intellectual Property, shall be and remain
the property of Company (“Company Intellectual Property”). Company hereby grants to Polyzen a non-exclusive,
non-sub licensable, fully-paid, royalty-free license to use Company Intellectual Property solely to the extent necessary to provide
the Services. Except as provided in the previous sentence, no right, title or interest in or to the Company Intellectual Property
is granted by Company to Polyzen, whether expressly, by implication, estoppel, or otherwise.

 

5. Representations
and Warranties. Each party represents and warrants to the other party that: (i) it is a company duly organized and validly
existing in good standing under the laws of the state of its formation or incorporation; (ii) it has all requisite right, power
and authority to enter into and execute this Agreement, and to perform and consummate the transactions contemplated hereby; (iii)
this Agreement, when executed by it, constitutes a legal, valid and binding obligation enforceable against it in accordance with
the terms hereof; (iv) its execution, delivery and performance of this Agreement will not result in any violation of any other
contract or agreement; and (v) it shall comply with and shall not take any action which would violate or cause the other party
to violate the provisions of: (a) the United States Foreign Corrupt Practices Act of 1977; or (b) The Bribery Act 2010 (c.23)
of the United Kingdom; or (c) the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions
of the Organization for Economic Co-operation and Development. Neither party nor any of its affiliates or their respective directors,
officers, shareholders, employees or agents shall make or offer, in respect of the performance of its obligations hereunder, any
loan, gift or other payment, directly or indirectly, whether in cash or in kind, for the use or benefit of a Foreign Official
(as defined herein) for the purposes of influencing any act or decision of such Foreign Official in its official capacity, or
inducing such Foreign Official to do or omit to do any act in order to obtain or retain business or otherwise to secure any improper
advantage. The term “Foreign Official” shall mean (A) any officer or employee of a foreign government, department
(whether executive, legislative, judicial or administrative), agency or instrumentality of such foreign government, including
a regional governmental body or a government-owned business, or of a public international organization; (B) any person acting
in an official capacity for or on behalf of such foreign government, department, agency, instrumentality, or public international
organization; (C) any candidate for a foreign political office; or (D) any foreign political party. Polyzen further represents
and warrants to the Company that: (1) it shall provide the Services in compliance with all applicable international, federal and
state laws and regulations (“Applicable Laws”); (2) except to the extent arising in connection with Company’s
payment obligations hereunder, Products, at the time received by Company at its end destination, will be free and clear from all
liens, encumbrances, and defects of title; (3) neither it nor any of its officers or directors or employees or agents providing
Services hereunder has been debarred pursuant to the Federal Food Drug and Cosmetic Act (“FDCA”) or excluded
from participating in a federal health care program, including without limitation the Medicare or Medicaid programs and shall
notify the Company promptly in writing in the event Polyzen or its officers, directors or employees or agents providing Services
hereunder subsequently becomes debarred under the FDCA or excluded from a federal healthcare program; and (4) it possesses all
required licenses, permits and registration of any relevant governmental authority required to provide the Services hereunder.
Company further represents and warrants to Polyzen: (aa) neither it nor any of its officers or directors or employees or agents
providing Services hereunder has been debarred pursuant to the FDCA or excluded from participating in a federal health care program,
including without limitation the Medicare or Medicaid programs; (bb) it controls all rights to Products, the Specifications and
the intellectual property rights associated therewith and has the right to grant to Polyzen the rights and licenses granted herein;
and (cc) the Products, the Specifications, the intellectual property rights associated therewith, and any trademarks, logos and
trade dress provided to Polyzen hereunder do not, and will not, infringe, violate or misappropriate the intellectual property
or other rights of any third party.

 

EXCEPT
AS SET FORTH IN THIS SECTION 5, THE SERVICES AND THE PRODUCTS ARE PROVIDED “AS IS” WITHOUT REPRESENTATION
OR WARRANTY OF ANY KIND. EXCEPT AS SET FORTH IN THIS SECTION 5, POLYZEN MAKES NO REPRESENTATION OR WARRANTY UNDER
THIS AGREEMENT, ORAL OR WRITTEN, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION, ANY WARRANTY OF MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE, USE OR TITLE OR NONINFRINGEMENT. EXCEPT AS SET FORTH IN THIS SECTION 5, POLYZEN DOES NOT
WARRANT THAT THE SERVICES WILL MEET COMPANY’S REQUIREMENTS NOR DOES IT GIVE ANY WARRANTY ABOUT THE RESULTS THAT MAY BE OBTAINED
BY USING THE SERVICES.

 

    	-7-

    	 

    

 

6. Limitation
of Liability. NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY FOR ANY DIRECT, INDIRECT, INCIDENTAL, SPECIAL, LOST PROFITS,
PUNITIVE, EXEMPLARY, REMOTE OR CONSEQUENTIAL DAMAGES (INCLUDING BUT NOT LIMITED TO LOSS OF REVENUE OR PROFITS) ARISING FROM OR
CAUSED, DIRECTLY OR INDIRECTLY, BY THE PERFORMANCE OR FAILURE TO PERFORM UNDER THIS AGREEMENT, OR BY ANY OTHER ACT OR OMISSION
OF THE PARTIES, OR BY ANY OTHER CAUSE. POLYZEN’S TOTAL CUMULATIVE LIABILITY TO COMPANY FOR ANY CLAIM, LOSS OR DAMAGE OF
ANY KIND ARISING UNDER THIS AGREEMENT, WHETHER BASED ON CONTRACT, TORT, NEGLIGENCE, OR OTHERWISE WILL NOT EXCEED TWO (2) TIMES
THE ACTUAL AMOUNT INVOICED BY POLYZEN FOR SERVICES RENDERED FOR THE COST OF PRODUCT RESPONSIBLE FOR SUCH CLAIMS, PROVIDED THAT
SUCH CLAIMS ARE NEITHER AS A RESULT OF POLYZEN’S GROSS NEGLIGENCE, OR WILLFUL OR FRAUDULENT MISCONDUCT IN THE PERFORMANCE
OF THE SERVICES NOR ARE SUCH CLAIMS AN INDEMNIFICATION OBLIGATION OF POLYZEN UNDER SECTION 7. IN CONNECTION WITH
POLYZEN’S INDEMNIFICATION OBLIGATIONS HEREUNDER, EXCEPT WITH RESPECT TO CLAIMS FOR FRAUD, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT,
IN NO EVENT WILL POLYZEN’S TOTAL LIABILITY TO COMPANY OR TO ANY THIRD PARTY EXCEED ONE MILLION DOLLARS ($1,000,000) PER
INCIDENT PROVIDED THAT POLYZEN’S TOTAL AGGREGATE LIABILITY HEREUNDER WILL NOT EXCEED THE GREATER OF (A) THREE MILLION DOLLARS
($3,000,000) OR (B) TWELVE MONTHS OF PAYMENTS TO POLYZEN UNDER THIS AGREEMENT (EXCLUDING EXPENSES).

 

7. Indemnification
and Insurance.

 

7.1 Indemnity
Obligations. In addition to its other indemnification obligations set forth herein, at its sole cost, each party (in such
capacity, the “Indemnifying Party”) hereby agrees to indemnify, defend and hold harmless the other party and
its shareholders, officers, directors, employees, agents, representatives, subcontractors, invitees, successors and assigns (each,
an “Indemnitee”) from and against any and all claims, suits, actions, liabilities, losses, costs and expenses
(including reasonable attorneys’ fees), judgments and damages (“Claims”) brought against any Indemnitee
by a third party which results or arises from, or is attributable to, (i) the Indemnifying Party’s gross negligence, intentional
misconduct, or failure to comply with Applicable Laws; or (ii) any breach of this Agreement or any term or condition set forth
herein by the Indemnifying Party, or its employees or agents, or any breach of any of such Indemnifying Party’s representations
or warranties set forth herein. In addition to its other indemnification obligations hereunder, and except to the extent Polyzen
is the Indemnifying Party pursuant to this Section 7.1, Company hereby agrees to indemnify, defend and hold harmless
Polyzen and its Indemnitees from and against any and all Claims related to the sale, resale, licensing or registration, distribution
or use by Company or any of its end-users of any Product accepted by Company pursuant to Section 2.5 above.

 

7.2 Procedure
for Indemnity. If any claim or action is asserted that would entitle Indemnitee to indemnification pursuant to Section
7.1 (a “Proceeding”), the Indemnitee will give written notice thereof to the Indemnifying Party promptly
of any demand, claim, loss, cost or damage or the commencement of any legal proceeding for which indemnification is sought hereunder
(but in no event later than 15 days from such event); provided, however, that the failure of the Indemnitee seeking
indemnification to give timely notice hereunder will not affect its rights to indemnification hereunder, except to the extent
the Indemnifying Party demonstrates actual damage any Proceeding without obtaining the prior written consent of the Indemnitee
seeking indemnification hereunder, such consent not to be unreasonably withheld. The parties will fully cooperate with each other
in any such Proceeding and will make available to each other any books or records useful for the defense of any such Proceeding

 

7.3 Insurance.
Each party shall maintain general liability insurance, including products liability coverage, and professional/ errors &
omissions liability insurance each in a minimum amount of $1,000,000 per occurrence or claims and $3,000,000 in the annual aggregate,
with deductibles not exceeding $250,000 per occurrence or claim that provides coverage for the Products and the Services, as applicable
contemplated by this Agreement. At a minimum, such party shall maintain such insurance coverage required hereunder for the entire
Term and for a period of not less than three (3) years following expiration or termination of the Agreement. If any such policy
shall provide coverage on a claims made basis, the party holding such policy shall be required to maintain a claims made policy
providing such coverage for an additional period of not less than three (3) years following the expiration or termination of this
Agreement. Each party shall deliver to the other party a certificate from the insurance carrier or broker evidencing such coverage
and noting any exclusions and agreeing to provide no less than thirty (30) days’ prior written notice to such other party
in the event of a material change in coverage or policy cancellation.

 

    	-8-

    	 

    

 

8. Term
and Termination.

 

8.1 Term.
The term of this Agreement shall commence on the Effective Date and shall continue for a period of five (5) years unless earlier
terminated in accordance with this Section 8 (the “Term”). At the end of the Term, this Agreement
will automatically renew for a period of one (1) year unless terminated in accordance with this Section 8. Prior to the end of
the Term, the parties may mutually agree in writing to renew this Agreement for such period as they may mutually agree on the
same, or substantially similar, terms and conditions as those terms and conditions set forth herein.

 

8.2 Termination
for Breach. A party may terminate immediately this Agreement upon written notice to the other party, if such other party commits
a material breach of this Agreement and fails to cure such material breach to the sole satisfaction of the non-breaching party
within thirty (30) days after receiving written notice thereof.

 

8.3 Termination
for Any Reason. Company may terminate this Agreement for any reason, upon providing Polyzen with one hundred eighty (180)
days’ prior written notice of its intention to terminate. For purposes of avoiding doubt, in the event of a termination
of this Agreement under this Section 8.3, Company agrees to purchase the amount of Products it is required to purchase
under Section 2.2 (as modified by Section 2.3) during the one hundred eighty (180)-day notice period
based on the most recent Forecast provided by Company.

 

8.4 Termination
for Force Majeure. Company may terminate this Agreement as provided in Section 10.5.

 

8.5 Effect
of Termination.

 

(a) Expiration
or termination of this Agreement for any reason shall not release any party hereto from any liability which, at the time thereof,
has already accrued to such party. Except in the event of Company’s termination of this Agreement pursuant to Section
8.2 or Section 8.4 above, Polyzen shall be entitled to payment of all fees incurred up to the date of termination
and all non-cancellable obligations, including all purchased inventory, work-in-progress inventory, incurred in connection with
any open and non-cancellable purchase order with a third-party vendor and all work-in-progress inventory and finished goods inventory
at Polyzen, in each case, that is the subject of a Purchase Order; provided that, in the event of a termination under Section
8.4 by Company, Polyzen shall be eligible for the payment of all purchased inventory and materials that were procured
in connection with a binding Purchase Order and that Polyzen actually delivers to the Company.

 

(b) Within
ten (10) days after the effective date of the termination or expiration of this Agreement, each party shall return to the other
party such other party’s Confidential Information in accordance with Section 4.3 above, except to the extent
such Confidential Information would be required in connection with a Technology Transfer.

 

(c) Any
and all provisions, promises and warranties contained herein which by their nature or effect are required or intended to be observed,
kept or performed after termination of this Agreement will survive the termination of this Agreement and remain binding upon and
for the benefit of the parties hereto, including, without limitation, the provisions of Sections 1, 2.7, 3, 4, 6, 7, 8, 9 and
10.

 

9. Recalls.
Company shall have sole responsibility for and shall make all decisions with respect to any recall, market withdrawals or
any other corrective action related to the Medical Device. If any Medical Device is recalled as a result of the gross negligence
or intentionally wrongful acts or omissions of Polyzen or its representatives in the manufacture of the Products, then Polyzen
shall bear and reimburse the Company for all of the costs and expenses of such recall, including reasonable attorney fees, expenses
related to communications and meetings with Regulatory Authorities, expenses of replacement Products, the cost of notifying users
of the Medical Devices, including costs associated with shipment of recalled Product from customers and shipment of an equal amount
of replacement Product to those same customers (collectively, “Recall Costs”). If any Product is recalled as
a result of the negligent or intentionally wrongful acts or omissions of the Company or its representatives, or is not due to
the fault of either party, then the Company shall bear all Recall Costs including any outstanding inventory costs such as raw
goods, work in progress and finished goods that cannot not be used by Polyzen in future manufacturing of the Products that may
be related to such Recall. To the extent that the reason for any recall of the Medical Device is in part the responsibility of
the Company or its agents and in part the responsibility of Polyzen, then the Recall Costs shall be allocated in an equitable
manner between the parties. Any liability of Polyzen hereunder shall be subject to the limitation of liability set forth in Section
6 of this Agreement.

 

    	-9-

    	 

    

 

10. Miscellaneous.

 

10.1 Governing
Law. This Agreement shall be governed and construed by, and enforced in accordance with, the laws of the State of New York,
without reference to its conflicts of laws principles. The U.N Convention on Contracts for the International Sale of Goods shall
not apply.

 

10.2 Financial
Audit. During the Term and during the one (1)-year period thereafter, Polyzen agrees to allow the Company and its representatives,
including its external auditors, access to its records solely to conduct an invoice reconciliation related to Polyzen’s
provision of the Services hereunder, provided that: (i) access will be provided no more than one (1) time per year; (ii) Company
provides Polyzen with reasonable prior written notice of its need for access; (iii) access will not disrupt unreasonably Polyzen’s
normal business operations and will be provided only during Polyzen’s standard business hours; and (iv) if access is granted
to Company’s representatives, such representatives must enter into a confidentiality and non-disclosure agreement reasonably
acceptable to Polyzen. If any reconciliation reveals that Polyzen has overcharged Company, Polyzen shall promptly reimburse the
Company for such overcharge and in the event that any such overcharge equals an amount equal to or greater than five percent (5%)
of the amount that should have been charged under the terms of this Agreement”), then Polyzen shall promptly reimburse Company
for fifty percent (50%) of reasonable costs and expenses incurred to third parties in the conduct of the audit, up to a maximum
amount of five thousand dollars ($5,000) per audit.

 

10.3 Relationship
of the Parties. The parties agree that they are independent contractors and that neither of them has any fiduciary duty to
the other. Neither party is the agent of the other. Neither party may represent to any person that it has the power to bind the
other party on any service contract or other agreement, or take any action reasonably likely to lead a third party to believe
that it is the agent or representative of the other party.

 

10.4 Notices.
All notices hereunder shall be in writing and delivered: (i) personally; (ii) by registered or certified mail, postage prepaid,
return receipt request; or (iii) by overnight courier service; in each case, to the following addresses of the respective parties:

 

	 	If
    to Company:	Motus
    GI Medical Technologies Ltd.
	 	 	Keren
    Hayesod 22,
	 	 	Tirat
    Carmel, Israel, 3902638
	 	 	Attn:
     General Manager
	 	 	 
	 	 	with
    a copy to:
	 	 	 
	 	 	Motus
    GI Medical Technologies Ltd.
	 	 	1301
    E. Broward Blvd.
	 	 	Suite
    310
	 	 	Ft.
    Lauderdale, FL 33301
	 	 	Attn:
    CFO
	 	 	 
	 	If
    to Polyzen:	Polyzen,
    Inc.
	 	 	1041
    Classic Road
	 	 	Apex,
    North Carolina 27539
	 	 	Attn:
    Executive Management

 

Notices
shall be effective upon receipt if personally delivered, on the fifth (5th) business day following the date of mailing if mailed,
and upon receipt if sent by overnight courier service. A party may change its address listed above by notice to the other party.

 

10.5 Force
Majeure. Except with respect to payments of money, neither party shall be liable to the other party for delays or failures
in performance resulting from causes beyond its reasonable control, including, without limitation, acts of God; fires, floods
or explosions; actions of governing or Regulatory Authorities; judicial orders; strikes or other labor disputes or disturbances;
power disruptions or equipment malfunctions; acts of terrorism or war; riots or civil disturbances; or communication, utility
or transportation failures (“Force Majeure Event”), provided, that the affected party promptly notifies the other
of the cause and its effects on the Services to be performed hereunder and shall resume performance as soon as practicable following
the end of the Force Majeure Event causing the delay. In the event that a Force Majeure Event continues for ninety (90) days,
Company may terminate this Agreement immediately upon providing notice to Polyzen.

 

    	-10-

    	 

    

 

10.6 Severability.
In case any one or more of the provisions of this Agreement shall be held by a court with proper jurisdiction to be invalid,
illegal, or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein
shall not in any way be affected or impaired thereby.

 

10.7 Assignment.
This Agreement may not be assigned by either party without first obtaining the prior written consent of other party; provided,
however, that no such consent shall be required for assignments to an Affiliate or the successor or the transferee of all or substantially
all of a party’s business or assets to which this Agreement relates. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective permitted successors and assigns. Any assignment by a party in violation of
this section shall be null and void.

 

10.8 Waiver;
Modification of Agreement. No waiver, amendment or modification of any of the terms of this Agreement shall be valid unless
in writing and signed by authorized representatives of both parties hereto. No modification to this Agreement shall be affected
by the acknowledgment or acceptance of any Purchase Order, invoice or similar documents containing terms or conditions at variance
with or in addition to those set forth herein. Failure by either party to enforce any rights under this Agreement shall not be
construed as a waiver of such rights nor shall a waiver by either party in one or more instances be construed as constituting
a continuing waiver or as a waiver in other instances.

 

10.9 Counterparts.
This Agreement and any exhibit attached hereto may be executed in one or more counterparts, each of which shall for all purposes
be deemed to be an original and all of which shall constitute one and the same Agreement and shall become effective when signed
by each of the Parties hereto and delivered to the other Party in accordance with the terms of this Agreement. Facsimile or a
Portable Document Format (i.e., PDF) data file signatures of any original document shall be considered the same as delivery of
an original.

 

10.10 Entire
Agreement. This Agreement is the final, complete and exclusive agreement of the parties with respect to subject matter hereof
and supersedes and merges all prior discussions between the parties.

 

10.11 Export
Restrictions. Each party acknowledges that any Product sold under this Agreement is subject to customs and export controls
laws and regulations of the United States and other countries. Each party agrees to abide by those laws and regulations. Further,
under the laws of the United States, the Product shipped pursuant to this Agreement may not be sold, leased or otherwise transferred
to restricted end-users or to restricted countries. Such shipped Product may not be sold, leased or otherwise transferred to,
or utilized by, an end-user engaged in activities related to weapons of mass destruction, including without limitation, activities
relating to the design, development, production or use of nuclear weapons, materials, or facilities, missiles or the support of
missile projects, and chemical or biological weapons.

 

[Signature
page follows]

 

    	-11-

    	 

    

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly authorized officers as of the Effective Date.

 

	POLYZEN,
    INC.	 	MOTUS
    GI MEDICAL TECHNOLOGIES, LTD
	 	 	 	 	 
	By:	/s/
    Nikin Shah	 	By:	/s/
    Mark Pomeranz
	 	 	 	 	 
	Name:	Nikin
    Shah	 	Name:	Mark
    Pomeranz
	 	 	 	 	 
	Title:	CFO
    / COO	 	Title:	CEO
    
	 	 	 	 	 
	Date:	August
    31, 2017	 	Date:	August
    31, 2017

 

    	-12-

    	 

    

 

Exhibit
A

 

Products
and Specifications

 

    	 

    	 

    

 

 

QAF
403a Customer Specification Template Rev C 

 

POLYZEN,
INC

CONTROLLED
DOCUMENT – CONFIDENTIAL

CS
510254

Rev
A   

	Part
    Description:	Motus
    GI Add-On Assembly - Packaged	 
	Polyzen
    P/N:	510254	Customer
    P/N: PV-OSK-001 Rev: A
	 	 	Customer
    Drawing: PV-OSK-001 Rev: A
	 	 	Customer
    Contracts: FQA00006p

 

Polyzen
P/N 410015 correlates to Motus GI Drawing PV-OS-001

 

Inspection
Tools:

Reverse
Vacuum Tube Fixture MF00046 (TL0154) 800476

Sleeve
Clamp (TL0188) 800477

Inflation
Fixture MF00046 (TL0045)

Inflation
Hub Tester (TL0151) PZ0977

Rigid
Head Clamping Jig (TL0183) 800485

Microscope
PZ

USON
(TL0153) PZ0955 / PZ1013

 

Specifications:

 

	 	●	*
	 	●	*
	 	●	*
	 	●	*
	 	●	*

 

Packaging
and Labeling Requirements Add-On 

 

	 	●	The
    IFU shall be included in the final packaging
	 	●	The
    Add-on outer and primary packaging shall be labeled with the following information: product name, lot number, product code,
    expiry date, company name & contact information, latex or phthalate content, international symbols can be used as appropriate.
	 	●	All
    package labels must be legible, with no obvious wear or smudging 
	 	●	Each
    single disposable shall be primary packaged in a pouch or a lidded box within a secondary shipper box
	 	●	Each
    shipper box shall contain up to 5 single disposable units.

 

Regulatory
& Safety Requirements

 

	 	●	The
    Add-on shall be manufactured in a clean room
	 	●	Bioburden
    requirement: as per Motus GI’s specifications (< * CFU)

 

 

    	1
                                         of 5

    	 

    

 

 

QAF
403a Customer Specification Template Rev C 

 

POLYZEN,
INC

CONTROLLED
DOCUMENT – CONFIDENTIAL

CS
510254

Rev
A   

	Part
    Description:	Motus
    GI Add-On Assembly - Packaged	 
	Polyzen
    P/N:	510254	Customer
    P/N: PV-OSK-001 Rev: A
	 	 	Customer
    Drawing: PV-OSK-001 Rev: A
	 	 	Customer
    Contracts: FQA00006p

 

Labeling

 

	 	●	Labels
    printed through Kodit system, content per spec PV-OS-001, PV-OSK-001
	 	●	Label
    will contain at a minimum 
	 	 	o	Product
    Description
	 	 	o	Reference
    Number (Customer PN)
	 	 	o	Polyzen
    Lot Number
	 	 	o	Manufacture
    Date
	 	 	o	Expiration
    Date

 

Certificate
of Conformance Requirements:

 

	 	●	Date
    	variable
	 	●	Supplier
    Name: 	Polyzen,
    Inc.
	 	●	Customer
    PO#: 	variable
	 	●	Quantity
    Shipped: 	variable
	 	●	Product
    Description: 	Motus
    GI Add-On Assembly – Packaged
	 	●	Customer
    Part No.: 	PV-OSK-001    Rev.
    A
	 	●	Polyzen
    Part No.: 	510254
	 	●	Polyzen
    Lot No.: 	variable
	 	●	The
    COC shall be approved by Quality Assurance.

 

Packaging
(single part per PV-OS-001, Box of 5 per PV-OSK-001)

 

	 	●	Assemblies
    to be packaged in five (5) individual In-patient Add-On boxes
	 	●	One
    (1) IFU – Add-On Assembly
	 	●	One
    (1 set) In-Patient Shipper Box Die Cut Foam Pad 
	 	●	One
    (1) Pure Vu Add-On Label on Shipper Box

 

Note:
parts to be sold will always be as a box of 5 (PV-OSK-001)

 

 

    	2 of 5

    	 

    

 

 

QAF
403a Customer Specification Template Rev C

 

POLYZEN,
INC

CONTROLLED
DOCUMENT – CONFIDENTIAL

CS
510254

Rev
A   

	Part
    Description:	Motus
    GI Add-On Assembly - Packaged	 
	Polyzen
    P/N:	510254	Customer
    P/N: PV-OSK-001 Rev: A
	 	 	Customer
    Drawing: PV-OSK-001 Rev: A
	 	 	Customer
    Contracts: FQA00006p

 

In
process inspection type and level:

 

	 	●	Visual
    100% QC Inspection
	 	 	o	410016
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	o	410017
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	o	410010
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	 	 
	 	 	o	410011
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	o	410012
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	o	410013	 
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	o	410014
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	o	410015
	 	 	 	▪	*
	 	 	 	▪	*

 

 

    	3
                                         of 5

    	 

    

 

 

QAF
403a Customer Specification Template Rev C

 

POLYZEN,
INC

CONTROLLED
DOCUMENT – CONFIDENTIAL

CS
510254

Rev
A   

	Part
    Description:	Motus
    GI Add-On Assembly - Packaged	 
	Polyzen
    P/N:	510254	Customer
    P/N: PV-OSK-001 Rev: A
	 	 	Customer
    Drawing: PV-OSK-001 Rev: A
	 	 	Customer
    Contracts: FQA00006p

 

	 	 	 	▪	100%
    visually inspect Add-On assembly as per table below:
	 	 	 	 	●	External
    Sensor Line Red 
	 	 	 	 	 	o	Red
    luer
	 	 	 	 	 	o	Filter
	 	 	 	 	●	Internal
    Sensor Line Blue
	 	 	 	 	 	o	Blue
    Luer
	 	 	 	 	 	o	Filter
	 	 	 	 	●	Irrigation
    line
	 	 	 	 	 	o	Clear
    Luer
	 	 	 	 	●	Pumping
    Line
	 	 	 	 	 	o	Cone
    x2
	 	 	 	 	 	o	Strain
    Relief x2
	 	 	 	 	 	o	Silicone
    tubes according to length x2
	 	 	 	 	●	Head
	 	 	 	 	 	o	*
	 	 	 	 	 	o	*
	 	 	 	 	 	o	*
	 	 	 	 	●	Complete
    Seal.
	 	 	 	 	●	No
    folds in seal area.
	 	 	 	 	●	Anchoring
    points are closed in trays.

 

Final
Release Testing:

 

	 	●	410015
    
	 	 	o	Sampling
    Plan:
	 	 	 	▪	*	 	 
	 	 	 	▪	*	 	 
	 	 	 	▪	*	 	 
	 	 	o 	 100% Visual Inspection
	 	 	 	▪ 	 Ensure the seal seam is:
	 	 	 	 	●	 Complete
	 	 	 	 	●	 Clear
	 	 	 	 	●	 No Folds
	 	 	 	 	●	 Ensure the tubes inside the package are not kinked

 

Sterilization:

 

	 	●	This
    product is not sterile
	 	●	Sterilization
    is not required for this product

 

Contract
agreements

 

	 	●	Customer
    Contract: FQA00006p

 

 

    	4
                                         of 5

    	 

    

 

 

QAF 403a Customer Specification Template Rev C

 

POLYZEN, INC

CONTROLLED DOCUMENT
-  CONFIDENTIAL

CS 510254

Rev A   

 

	Part Description:	Motus GI Cartridge Assembly - Packaged	 
	Polyzen P/N:	 510254 	Customer P/N: PV-WSCK-001 Rev: A
	 	 	Customer Drawing: PV-WSCK-001 Rev: A
	 	 	Customer Contracts: FQA00006p

 

Revision
History

 

	Date	DCO
    #	Rev	Initiator	Changes
	19Jan2018	18-023	A	————	Initial
    release of document

 

 

    	 	5 of 5	 

     

    

 

 

QAF
403a Customer Specification Template Rev C

 

POLYZEN,
INC

CONTROLLED
DOCUMENT – CONFIDENTIAL

CS
510255

Rev
A   

	Part
    Description:	Motus
    GI Cartridge Assembly - Packaged	 
	Polyzen
    P/N:	510255	Customer
    P/N: PV-WSCK-001 Rev: A
	 	 	Customer
    Drawing: PV-WSCK-001 Rev: A
	 	 	Customer
    Contracts: FQA00006p

 

Polyzen
P/N 410018 correlates to Motus GI Drawing PV-WSC-001

 

Inspection
Tools:

 

Cartridge
testing Device TL0152 PZ0978

USON
TL0153 PZ0955 / PZ1013

 

Specifications:

 

Packaging
and Labeling Requirements Add-On 

 

	 	●	All
    package labels must be legible, with no obvious wear or smudging
	 	●	Each
    single disposable shall be primary packaged in a pouch or a lidded box within a secondary shipper box
	 	●	Each
    shipper box shall contain up to 5 single disposable units.

 

Regulatory
& Safety Requirements

 

	 	●	WS
    Connector shall be manufactured in a Cleanroom
	 	●	Bioburden
    requirement: as per Motus GI specifications (< * CFU)

 

Labeling

 

	 	●	Labels
    printed through the Kodit system per spec PV-WSC-001, and PV-WSCK-001
	 	●	Label
    will contain at a minimum 
	 	 	o	Product
    Description
	 	 	o	Reference
    Number (Customer PN)
	 	 	o	Polyzen
    Lot Number
	 	 	o	Manufacture
    Date
	 	 	o	Expiration
    Date

 

Certificate
of Conformance Requirements:

 

	 	●	Date
    	variable
	 	●	Supplier
    Name: 	Polyzen,
    Inc.
	 	●	Customer
    PO#: 	variable
	 	●	Quantity
    Shipped: 	variable
	 	●	Product
    Description: 	Motus
    GI Cartridge Assembly – Packaged
	 	●	Customer
    Part No.: 	PV-WSCK-001    Rev.
    A
	 	●	Polyzen
    Part No.: 	510255
	 	●	Polyzen
    Lot No.: 	variable
	 	●	The
    COC shall be approved by Quality Assurance. 

 

 

    	1 of 3

    	 

    

 

 

QAF
403a Customer Specification Template Rev C

 

POLYZEN,
INC

CONTROLLED
DOCUMENT – CONFIDENTIAL

CS
510255

Rev
A   

	Part
    Description:	Motus
    GI Cartridge Assembly - Packaged	 
	Polyzen
    P/N:	510255	Customer
    P/N: PV-WSCK-001 Rev: A
	 	 	Customer
    Drawing: PV-WSCK-001 Rev: A
	 	 	Customer
    Contracts: FQA00006p

 

Packaging
(single part per PV-WSC-001, Box of 5 per PV-WSCK-001)

 

	 	●	Packaged
    Five (5) WS Cartridge Assemblies in Cartridge Boxes 
	 	●	One
    (1 set) Cartridge Shipper Box Die Cut Foam Pad
	 	●	One
    (1) Pure Vu WS Cartridge Label
	 	●	One
    (1) Cartridge Shipper Box

 

Note:
Parts to be sold will always be as a box of 5 (PV-WSCK-001)

 

In
process inspection type and level:

 

	 	●	Visual
    100% QC Inspection
	 	 	o	410018
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*

 

Final
Release Testing:

 

	 	●	410018
	 	 	o	Sampling
    Plan:
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	 	▪	*
	 	 	o	100%
    Visual Inspection
	 	 	 	▪	Complete
    Seal
	 	 	 	▪	No
    folds in seal area
	 	 	 	▪	Anchoring
    points are closed in trays

 

Sterilization:

 

		●	This
                                         product is not sterile

		●	Sterilization
                                         is not required for this product

 

Contract
agreements

 

		●	Customer
                                         Contract: FQA00006p

 

 

    	2 of 3

    	 

    

 

    
 

QAF
403a Customer Specification Template Rev C

 

POLYZEN,
INC

CONTROLLED
DOCUMENT – CONFIDENTIAL

CS
510255

Rev
A   

	Part
    Description:	Motus
    GI Cartridge Assembly - Packaged	 
	Polyzen
    P/N:	510255	Customer
    P/N: PV-WSCK-001 Rev: A
	 	 	Customer
    Drawing: PV-WSCK-001 Rev: A
	 	 	Customer
    Contracts: FQA00006p

 Revision
History

 

	Date	DCO
    #	Rev	Initiator	Changes
	19Jan2018	18-023	A	——-	Initial
    release of document

 

    	 	3 of 3	 

     

    

 

Exhibit
B

 

Quality
Agreement

 

[Attached]

 

    	 

    	 

    

 

		Title:

                                                                                Quality Agreement Form

	Document No:

                                                                                FQA00006p
	Rev:

                                                                                3.0
	Page:

                                                                                2
                                         of 4

 

Quality
Agreement – Suppliers of Materials

 

MOTUS
GI Medical Technologies Ltd. has entered into a technical supply agreement with Polyzen, (the “Supplier”),
dated 6/30/17 (the “Agreement”), for the provision of Services. Capitalized terms used but not defined herein
shall have the respective meanings given to such terms in the Agreement.

 

	1.1	The
    supplier will establish and maintain a quality system in accordance with the relevant standards and regulations. A copy of
    any quality system certification will be sent to MOTUS GI Medical Technologies Ltd (i.e., ISO: 9001, ISO: 13485, etc.).
	 	 
	1.2	The
    supplier agrees to supply only products complying with the purchasing specification developed and maintained by MOTUS GI Medical
    Technologies Ltd for the specific material.
	 	 
	1.3	The
    Company will provide Supplier with copies of all material filings, submissions and correspondence with and to Regulatory Authorities
    with respect to issues reasonably related to the performance of the Services by Supplier. Supplier will maintain pertinent
    Products documents, as applicable, to support the Company’s ongoing regulatory activities required for the manufacture
    of the Medical Devices all in accordance with applicable laws and industry standards, including 21 C.F.R. Part 820 and ISO
    9001, ISO 13485.
	 	 
	1.4	During
    the term of the Agreement and for a period of time equivalent to the design and expected life of the Medical Device, but in
    no case, less than five years after the last product has been manufactured, Supplier shall keep complete records related to
    the manufacture of the Products at the Facility
	 	 
	1.5	The
    supplier agrees not to make any design changes, including, but not limited to changes to the material, such as changes to
    manufacturing process, testing methods, facility, site of manufacture etc., that may have impact on the quality system before
    the change is implemented for the materials sourced without the prior approval of MOTUS GI Medical Technologies Ltd. Requests
    for changes shall be submitted by supplier on FQA00006q - Supplier Change Request (SCR) form.
	 	 
	1.6	The
    supplier agrees to inform MOTUS GI Medical Technologies Ltd immediately of any errors or deviations to manufacture of the
    material that may have impact on the quality of the materials supplied.
	 	 
	1.7	The
    supplier agrees not to pass any information regarding the supply of materials to a 3rd party without the prior
    approval of MOTUS GI Medical Technologies Ltd.
	 	 
	1.8	Supplier
    will promptly advise the Company if a Regulatory Authority visits the Facility and requests or requires information or changes
    that directly pertain to the Product(s). Supplier shall supply the Company with copies of any correspondence provide by the
    Regulatory Authority, as well as any other documents related thereto requested by the Company. Supplier agrees to permit access
    to its Facility and records to any Regulatory Authority and to cooperate with such Regulatory Authority.

 

This
document is property of MOTUS Gl Medical Technologies LTD, its contents are CONFIDENTIAL and shall not be disclosed,

disseminated,
copied or used, without a written permission.

 

     

     

    

 

		Title:

                                                                                Quality Agreement Form

	Document No:

                                                                                FQA00006p
	Rev:

                                                                                3.0
	Page:

                                                                                3
                                         of 4

 

	 	Supplier
    will, to the extent possible, allow a representative of the Company to be present during any such inspection, investigation
    or inquiry.
	 	 
	1.9	Each
    party shall promptly (and in any event, within three (3) business days of the date of receipt of notice unless otherwise set
    forth herein) notify the other party in writing of, and shall provide the other party with copies of any correspondence and
    other documentation received or prepared by such party in connection with any of the following events: receipt of a letter
    from a Regulatory Authority including a Warning Letter or Untitled Letter related to the Product(s), FDA Form 483 (list of
    inspectional observations) or similar item, from the FDA or any other Regulatory Authority directed to the Product(s), or
    in connection with any general inspection applicable to the Facility that is impactful upon the Services or the Product(s)
    (“Regulatory Notices”). The parties shall cooperate with each other in responding to any such Regulatory Notices
    and shall provide copies to the other party of any documentation submitted to the Regulatory Authority in connection therewith.
	 	 
	1.10	The
    Company or its representatives, including its external auditors, may perform on site quality assurance audits and audit any
    records of Supplier related to the performance of the Services at any time during the Term of this Agreement and for the one
    (1) year period following the expiration or termination of this Agreement during normal business hours and without notice
    to Service Provider (unannounced audits). Supplier shall make any records readily available for such audit, and the Company
    or its designees may copy any and all such records in connection with any such audit.
	 	 
	1.11	In
    case non-conformance are found during the audit, the supplier undertakes to correct them within a reasonable time frame and
    acceptable by MOTUS GI Medical Technologies Ltd. If deficiencies are such that hinder safety, performance or compliance with
    regulatory requirements, for the supplier to stop production of the MOTUS GI Medical Technologies Ltd products and correct
    the deficiencies immediately. Beginning of remanufacturing is subject to approval in writing from the MOTUS GI Medical Technologies
    Ltd.
	 	 
	1.12	All
    parts supplied should be procured only from official distributors.
	 	 
	1.13	All
    the processes performed in the supplier facilities that are not verifiable by audits, are required to pass validation. MOTUS
    GI Medical Technologies Ltd will receive a copy of the final validation report concerning its products.
	 	 
	1.14	Electronic
    parts will not exceed the date code of 24 month. Older part will be provided only after coordination and written approval
    of MOTUS GI Medical Technologies Ltd quality management.
	 	 
	1.15	The
    supplier agrees to supply with each shipment a Certificate of Assurance or Certificate of Compliance or Certificate of Tests
    as applicable for the material.
	 	 
	1.16	The
    supplier agrees to investigate complaints regarding the purchased materials and issue a written report to MOTUS GI Medical
    Technologies Ltd detailing the findings and applicable corrective actions.

 

This
document is property of MOTUS Gl Medical Technologies LTD, its contents are CONFIDENTIAL and shall not be disclosed,

disseminated,
copied or used, without a written permission.

 

     

     

    

 

		Title:

                                                                                Quality Agreement Form

	Document No:

                                                                                FQA00006p
	Rev:

                                                                                3.0
	Page:

                                                                                4
                                         of 4

 

	1.17	The
    Company will be solely responsible for interacting with the public or third parties with respect to complaints regarding the
    Medical Devices. Supplier will cooperate with the Company in investigating any such complaints to the extent that such complaint
    involves Products manufactured by Supplier for the Company pursuant to this Agreement.
	 	 
	1.18	The
    Company will be solely responsible for all medical device reporting required under applicable laws for the Medical Device.
    To the extent, Supplier receives a report of any adverse experience related to the Medical Device, Supplier will immediately,
    and in no event later than two (2) calendar days of receipt, forward the report to the Company.

 

Records
and Traceability

 

	1.19	If
    the validity of the agreement with MOTUS GI Medical Technologies Ltd expires, the supplier agrees to transfer to MOTUS GI
    Medical Technologies Ltd all records related to the company orders at least the last seven years.

 

The
agreement scope is listed bellow:

 

Material
/ service description: Manufacturing of finished disposable Oversleevcs, Work station Connectors, including all packaging,
labeling and shipping. Finished good lot packages to be provided & approved to MOTUS GI prior to release I shipping.

 

	This
    supplier Quality agreement has been signed by:
	 
	for
    MOTUS GI Medical Technologies Ltd	 	for
    Polyzen (supplier)
	 	 	 
	By:	Mado
    Otzri	 	By:	 John
    Allgood 
	Job
    Description:	QA
    Director	 	Job
    Description:	Director
    of Quality
	Date:	4-Jul-2017	 	Date:	3-Jul-2017
	Signature:	/s/
    Mado Otzri	 	Signature:	 /s/ John Allgood  

 

This
document is property of MOTUS Gl Medical Technologies LTD, its contents are CONFIDENTIAL and shall not be disclosed,

disseminated,
copied or used, without a written permission.

 

     

     

    

 

Exhibit
C

 

Price
and Suppliers

Polyzen
Sleeve Assembly

Component: Sleeve Assembly

Supplier: Polyzen

 

	Motus Part Number	 	Volume / Capacity	 	Price
	ASM100016	 	* sleeve assemblies per week	 	 $ * / sleeve 
Pricing as of October 2016

 

Other
Polyzen Components

Component: Leaf Seals

Supplier: Polyzen

 

	Motus Part
 Number
	 	Description	 	Quantity Per Device	 	Volume / Capacity	 	Price
	 	 	Leaf Seals – *	 	*	 	 	 	 
	 	 	Leaf Seals – *	 	*	 	 	 	 

 

Polyzen
Sourced Components

 

Pricing
Methodology for Sourced Components: Polyzen will provide open-book pricing on all sourced components, provided that Polyzen charge
a mark-up all sourced components by * % to account for purchasing, incoming inspection / quality, and supplier management costs.

 

	●	Component:
    Injection Molded Parts
	 	Supplier:
    Medacys
	 	Address:
________

 

Note:
Pricing is based on validations being complete. Thus, any additional inspections will be charged as a separate line item.

 

	 	 	 	 	 	 	 	 	Price
    Breaks
	Motus
    Part Number	 	Rev	 	Part
    Description	 	Quantity
    Per Device	 	MOQ
    = 1,000	 	2,000	 	5,000
	ASM100003	 	A	 	 *	 	2	 	 $  *	 	 $  *	 	 $  *
	ASM100043	 	N/A	 	*	 	1	 	 $  *	 	 $  *	 	 $  *
	ASM100002	 	A	 	 *	 	1	 	 $  *	 	 $  *	 	 $  *
	 	 	 	 	 	 	 	 	10,000	 	50,000	 	100,000
	ASM100003	 	A	 	 *	 	2	 	 $  *	 	 $  *	 	 $  *
	ASM100043	 	N/A	 	*	 	1	 	 $  *	 	 $  *	 	 $  *
	ASM100002	 	A	 	*	 	1	 	 $  *	 	 $  *	 	 $  *

 

	 	 	 	 	 	 	 	 	Price
    Breaks
	Motus
    Part Number	 	Rev	 	Part
    Description	 	Quantity
    Per Device	 	MOQ
    = 1,000	 	2,000	 	5,000
	MFR000388	 	A	 	*	 	1	 	 $  *	 	 $  *	 	 $  *
	MFR000212	 	A	 	*	 	1	 	 $  *	 	 $  *	 	 $  *
	MFR000213	 	N/A	 	*	 	1	 	 $  *	 	 $  *	 	 $  *
	MFR000334	 	A	 	*	 	2	 	 $  *	 	 $  *	 	 $  *
	 	 	 	 	 	 	 	 	10,000	 	50,000	 	100,000
	MFR000388	 	A	 	*	 	1	 	 $  *	 	 $  *	 	 $  *

 

    	 

    	 

    

 

	MFR000212	 	A	 	*	 	1	 	 $  *	 	 $  *	 	 $  *
	MFR000213	 	N/A	 	*	 	1	 	 $  *	 	 $  *	 	 $  *
	MFR000334	 	A	 	*	 	2	 	 $  *	 	 $  *	 	 $  *

 

	●	Component: Tubing
	 	Supplier:
    Natvar
	 	Address: _______

 

	Motus Part Number	 	Description	 	Price (per unit)	 	Quantity per

 Device
	MFR000214	 	*	 	 $  *	 	2
	ASM100028	 	*	 	 $  *	 	1
	TUB000052-01	 	*	 	 $  *	 	1
	TUB000052-02	 	*	 	 $  *	 	1
	TUB000052-03	 	*	 	 $  *	 	1
	TUB000051-07	 	*	 	 $  *	 	1
	TUB000051-04	 	*	 	 $  *	 	1
	TUB000051-05	 	*	 	 $  *	 	1
	TUB000051-06	 	*	 	 $  *	 	1

 

Supplier:
Vesta

Address:
_______

 

	Motus Part Number	 	Description	 	Price (per unit)	 	Quantity per
 Device

	TBD	 	*	 	TBD	 	 

 

Other
Sourced Components

 

	Vendor	 	Motus Part
 Number
	 	Description	 	Price (per unit)	 	Quantity per
 Device

	Borla	 	STP000195	 	*	 	 $ *	 	2
	Borla	 	STP000196	 	*	 	 $ *	 	1
	Borla	 	STP000194	 	*	 	 $ *	 	1
	Pall	 	STP000183	 	*	 	 $  *	 	1

 

Full
Medical Device Assembly

 

Supplier:
Polyzen

 

Pricing
will be determined and agreed to by the parties once full assembly transfer process has been determined, setup and confirmed.
Initial estimates can be provided based on current time-studies and process in Motus Israel.

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

 

    	 

    	 

    

 

Exhibit
E

 

Polyzen’s
Background Intellectual Property as of the Effective Date

 

	1.	Polyzen
    Add-On Sleeve Assembly, Coated
	 	a.	*
	 	b.	*
	 	c.	*Exhibit 10.10

COLUMBIA BANK

STOCK-BASED DEFERRAL PLAN

 

		1.	Purpose.

 

The Columbia Bank Stock-Based Deferral
Plan provides eligible key executives and members of the Board of Directors of Columbia Bank with the opportunity to elect to defer
compensation received from Columbia Bank for their services and make deemed investments of that deferred compensation in shares
of Columbia Financial, Inc. common stock. The Columbia Bank Stock-Based Deferral Plan is intended to constitute a deferred compensation
plan that satisfies the requirements of Section 409A of the Internal Revenue Code of 1986, as amended.

 

		2.	Definitions.

 

As used in the Plan, the following terms
have the meanings indicated:

 

Bank means Columbia Bank, a federal
savings bank.

 

Beneficiary has the meaning set
out in Section 14.

 

Board means the Board of Directors
of the Bank.

 

Change in Control means (a) with
respect to an Eligible Director, a “Change in Control” within the meaning of the Director Deferral Plan, and (b) with
respect to an Eligible Executive, a “Change in Control” within the meaning of the SIM.

 

Code means the Internal Revenue
Code of 1986, as amended.

 

Committee means the Compensation
Committee of the Board.

 

Company means Columbia Financial,
Inc., the holding company for the Bank.

 

Company Stock means the common stock
of the Company.

 

Compensation means, for an eligible
Executive or Director, the Executive’s or Director’s Base Compensation, Bonus Compensation and LTI Compensation, as
follows:

 

		(a)	Base Compensation for an Executive means the Executive’s base salary earned from the
Employer.

 

		(b)	Base Compensation for a Director means the Director’s total cash compensation (including
retainers and meeting fees) earned from the Employer.

 

		(c)	Bonus Compensation for an Executive means the Executive’s annual incentive award earned
under the Employer’s annual incentive plan, as applicable to the Executive.

 

		(d)	LTI Compensation for an Executive means the Executive’s long-term incentive award
earned under the Employer’s long-term incentive plan, as applicable to the Executive.

 

     

     

    

 

Deferred Stock Account means a bookkeeping
account reflecting the investment of a Participant’s deferred Compensation in Company Stock Units and any adjustments thereto.

 

Director means a member of the Board
of Directors of the Company, the Bank, or any other Employer.

 

Director Deferral Plan means the
Columbia Bank Director Deferred Compensation Plan.

 

Effective Date means March 1, 2018.

 

Election Form shall have the meaning
set out in Section 4(b)(v).

 

Eligible Director means a Director
eligible to participate in the Plan pursuant to Section 3(c).

 

Eligible Executive means an Executive
eligible to participate in the Plan pursuant to Section 3(c).

 

Employer means the Company and its
controlled group of organizations, as defined by Code section 414(b) and (c) and the regulations issued thereunder, including,
but not limited to, the Bank. An entity shall be considered a member of the Company’s controlled group only during the period
it is one of the group of organizations described in the preceding sentence.

 

Executive means any person who is
employed in a salaried classification by the Employer and receiving remuneration for personal services rendered in the employment
of the Employer.

 

Participant means an Eligible Executive
or Eligible Director who is a Participant pursuant to Section 3 of the Plan.

 

Performance Period means, with respect
to Bonus Compensation or LTI Compensation, the period for which such Bonus Compensation or LTI Compensation is calculated and determined.
For deferral election purposes under the Plan, a Performance Period shall be deemed to relate to the Plan Year in which the Performance
Period begins.

 

Plan means this Columbia Bank Stock-Based
Deferral Plan.

 

Plan Administrator means the Committee
or its delegate or delegates, which shall have the authority to administer the Plan. As of the Effective Date, the Committee has
delegated the responsibility for the operational administration of the Plan to the Bank’s Retirement Plan Committee. In turn,
the Bank’s Retirement Plan Committee has delegated the responsibility for the operational administration of the Plan to the
Bank’s Executive Vice President, Human Resources Officer. The Committee and Retirement Committee are authorized to rescind
such delegations and re-delegate operational responsibilities to other persons or parties at any time. References in this document
to the Plan Administrator shall be understood as referring to the party to which the Bank’s Retirement Plan Committee has
delegated its responsibility hereunder at the applicable time.

 

Plan Year means the calendar year.

 

    	 	2	 

     

    

 

Separation from Service means Participant’s
separation from service as defined in Section 409A. In the event a Participant who is an Eligible Executive also provides services
other than as an Executive for the Employer, as determined under the prior sentence, such other services shall not be taken into
account in determining when a Separation from Service occurs to the extent permitted under Treas. Reg. § 1.409A-1(h)(5). The
term may also be used as a verb (i.e., “Separates from Service”) with no change in meaning.

 

SIM means the Columbia Bank Savings
Income Maintenance Plan.

 

Specified Employee means one of
the individuals identified in accordance with the principles set forth below.

 

		(a)	General. Any Participant who at any time during the applicable year is:

 

		(i)	An officer of any member of the Employer having annual compensation greater than $175,000 (as adjusted
for the applicable year under Section 416(i)(1) of the Code);

 

		(ii)	A 5-percent owner of any member of the Employer; or

 

		(iii)	A 1-percent owner of any member of the Employer having annual compensation of more than $150,000.

 

For purposes of (1) above, no
more than 50 employees identified in the order of their annual compensation shall be treated as officers. For purposes of this
Section, annual compensation means compensation as defined in Treas. Reg. §1.415(c)-2(a), without regard to Treas. Reg. §§1.415(c)-2(d),
1.415(c)-2(e), and 1.415(c)-2(g). The Plan Administrator shall determine who is a Specified Employee in accordance with Section
416(i) of the Code and the applicable regulations and other guidance of general applicability issued thereunder or in connection
therewith (provided, that Section 416(i)(5) of the Code shall not apply in making such determination), and provided further that
the applicable year shall be determined in accordance with Section 409A and that any modification of the foregoing definition that
applies under Section 409A shall be taken into account.

 

		(e)	Applicable Year. The Plan Administrator shall determine Specified Employees as of the last
day of each calendar year, based on compensation for such year, and such designation shall be effective for purposes of this Plan
for the twelve month period commencing on April 1st of the next following calendar year.

 

Stock Unit means a hypothetical
share of Company Stock. Each Stock Unit held in a Deferred Stock Account shall be deemed to have the same value, from time to time,
as a share of Company Stock.

 

30-Day Election Period shall have
the meaning set out in Section 4(b)(i).

 

Trust means a trust created for
the purposes specified in Section 7.

 

    	 	3	 

     

    

 

Unforeseeable Emergency means a
severe financial hardship to the Participant resulting from (a) an illness or accident of the Participant, the Participant’s
spouse, the Participant’s Beneficiary or the Participant’s dependent (as defined in Code Section 152(a), without
regard to Code Sections 152(b)(1), 152(b)(2) and 152(d)(1)(B)); (b) loss of the Participant’s property due to casualty; or
(c) any other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant.
The Plan Administrator shall determine the occurrence of an Unforeseeable Emergency in accordance with Treas. Reg. §1.409A-3(i)(3)
and any guidelines established by the Plan Administrator.

 

		3.	Participation in the Plan.

 

		(a)	Eligibility to Participate. The Committee shall designate the Executives who shall be eligible
to participate in the Plan. The Executives who are eligible to participant in the Plan on the Effective Date are named on Appendix
A hereto. Each Director shall automatically be eligible to participate in the Plan. Participation in the Plan shall commence
upon the Eligible Executive’s or Eligible Director’s submission of a timely Election Form to the Plan Administrator
in the manner prescribed below.

 

		(b)	Termination of Deferral Eligibility and Termination of Participation. A Participant’s
eligibility to make and/or receive deferrals under the Plan shall cease on the earlier of: (i) the date the Participant incurs
a Separation from Service, or (ii) the date the Plan Administrator determines the Participant is no longer eligible to make deferrals
under the Plan, in either case the Participant’s “Election Termination Date.” A Participant’s having an
Election Termination Date shall not affect any election already made that otherwise has become irrevocable in accordance with the
rules of this Plan. An individual, who has been an active Participant under the Plan, ceases to be a Participant on the date his
or her Deferred Stock Account is fully paid out.

 

		4.	Deferrals.

 

		(a)	Elective Deferrals.

 

		(i)	Each Eligible Executive may make an election to defer under the Plan any whole percentage up to
100% or any specified dollar amount of his or her Base Compensation in the manner described in subsection (b)(i). Each Eligible
Director may make an election to defer under the Plan any whole percentage up to 100% of his or her Base Compensation in the manner
described in subsection (b)(i). Any Base Compensation deferred by an Eligible Executive or Eligible Director for a Plan Year shall
be deducted each pay period during the Plan Year for which he or she has Base Compensation and is an Eligible Executive or Eligible
Director. Base Compensation paid after the end of a Plan Year for services performed during the final payroll period beginning
in the preceding Plan Year shall be treated as Base Compensation for services in the subsequent Plan Year.

 

    	 	4	 

     

    

 

		(ii)	Each Eligible Executive may make an election to defer under the Plan any whole percentage up to
100% of his or her Bonus Compensation in the manner described in subsection (b)(ii). Any Bonus Compensation deferred by an Eligible
Executive for a Plan Year will be deducted from his or her payment under the applicable bonus program at the time it would otherwise
be paid, provided he or she satisfies all conditions for payment that would apply in the absence of a deferral.

 

		(iii)	Each Eligible Executive may make an election to defer under the Plan any whole percentage up to
100% of his or her LTI Compensation in the manner described in subsection (b)(iii). Any LTI Compensation deferred by an Eligible
Executive for a Plan Year will be deducted from his or her payment under the applicable long-term incentive program at the time
it would otherwise be paid, provided he or she satisfies all conditions for payment that would apply in the absence of a deferral.

 

		(b)	Content and Timing of Deferral Election.

 

		(i)	Ordinarily an Eligible Executive or Eligible Director must make a deferral election for a Plan
Year with respect to Base Compensation no later than December 31 of the calendar year prior to the Plan Year in which the
Base Compensation is earned for services performed in such Plan Year (although the Plan Administrator may adopt policies that encourage
or require earlier submission of Election Forms). If December 31 is not a business day, the deadline shall be the last preceding
business day. However, an individual who newly becomes an Eligible Executive or Eligible Director will have 30 days from the date
the individual becomes an Eligible Executive or Eligible Director to make a deferral election with respect to Base Compensation
that is earned for services performed after the election is received (the “30-Day Election Period”). The 30-Day Election
Period may be used to make an election for Base Compensation earned in the Plan Year in which the individual becomes an Eligible
Executive. If a Base Compensation deferral election for a Plan Year is made in reliance on the 30-day rule, the Plan Administrator
shall apply the election only apply to Base Compensation earned for services performed after the date the election is received.

 

		(ii)	An Eligible Executive must make a deferral election with respect to his or her Bonus Compensation
for a Performance Period no later than December 31 of the calendar year prior to the Plan Year in which the Performance Period
begins (although the Plan Administrator may adopt policies that encourage or require earlier submission of Election Forms). If
December 31 is not a business day, the deadline shall be the last preceding business day for the applicable Bonus Compensation.
The 30-Day Election Period does not apply to Bonus Compensation.

 

		(iii)	An Eligible Executive must make a deferral election with respect to his or her LTI Compensation
for a Performance Period no later than December 31 of the calendar year prior to the Plan Year in which the Performance Period
begins (although the Plan Administrator may adopt policies that encourage or require earlier submission of Election Forms). If
December 31 is not a business day, the deadline shall be the last preceding business day for the applicable LTI Compensation. The
30-Day Election Period does not apply to LTI Compensation.

 

    	 	5	 

     

    

 

		(iv)	Generally, an Eligible Executive must make a separation deferral election under (i), (ii) and (iii)
above for each category of a Plan Year’s compensation that is eligible for deferral. If a properly completed and executed
Election Form is not actually received by the Plan Administrator by the prescribed time in (i), (ii), or (iii) above, as applicable,
the Eligible Executive or Eligible Director will be deemed to have elected not to defer any Base Compensation, Bonus Compensation
or LTI Compensation, as the case may be, for the applicable Plan Year. Except as provided in the next sentence, an election is
irrevocable once received and determined by the Plan Administrator to be properly completed (and such determination shall be made
not later than the last date for making the election in question). Increases or decreases in the amount or percentage a Participant
elects to defer shall not be permitted during a Plan Year; provided that if a Participant receives a hardship distribution under
a cash or deferred profit sharing plan that is sponsored the Employer and such plan requires that deferrals under such plan be
suspended for a period of time following the hardship distribution, the Plan Administrator may cancel the Participant’s deferral
election under this Plan so that no deferrals shall be made during such suspension period. If an election is cancelled because
of a hardship distribution in accordance with the foregoing, such cancellation shall permanently apply to the deferral election
or elections for any Plan Year covered by such suspension period and the Participant will only be eligible to make a new deferral
election for the Plan Year that begins after the end of the suspension period pursuant to the rules in this Section 4.

 

		(v)	All deferral elections shall be made on a form or forms prescribed by the Plan Administrator (an
“Election Form”). The applicable Election Form may impose administrative requirements and limitations for deferral
elections (i.e., it may limit the amount of compensation subject to deferral as necessary to coordinate deferrals under multiple
plans of the Employer).

 

		(c)	Special Transfer Rule. Each Eligible Executive with an account balance under the SIM and
each Eligible Director with an account balance in the Director Deferral Plan may elect, not later than 30 days after the Effective
Date, to effect a one-time transfer of amounts accrued on his or her behalf under such plan to this Plan on an Election Form prescribed
by the Plan Administrator for this purpose. All transferred amounts shall thereafter be treated in the same manner as any other
Compensation deferred under this Plan and shall, for all purposes, be subject to the provisions of this Plan. Notwithstanding the
foregoing or any other provision of this Plan, all amounts transferred from the SIM and the Director Deferral Plan to this Plan
will be subject to the vesting schedule and time and form of payment in effect for the transferred amounts at the time of the corresponding
original deferral election under the SIM or Director Deferral Plan, as applicable.

 

		(d)	Non-Elective Deferrals. In addition to any elective deferrals made by a Participant under
subsections (a) – (c) above, the Employer, in its sole discretion, may, but shall not be required to, credit to a Participant’s
Account as a non-elective deferral contribution (a “Employer Contribution”) any amount it determines appropriate and
under such terms and conditions as established by the Plan Administrator. The amount so credited, if any, may vary from Participant
to Participant and may be zero even if a contribution is made on behalf of another Participant. The Employer may also express an
Employer Contribution as a matching contribution equal to a percentage of the Participant’s annual elective deferral contributions,
if any.

 

    	 	6	 

     

    

 

		5.	Stock Unit Accounting.

 

		(a)	Stock Units. All amounts deferred under the Plan shall be held as Stock Units. With respect
to all amounts for which a deferral election is made, the Company shall transfer such amounts to the Trust as soon as is reasonably
practicable after the time when the Compensation otherwise would have been payable in cash to the Participant or at such other
times as the Plan Administrator shall determine in its sole discretion. Thereafter, the trustee of the Trust shall determine the
number of Stock Units to be credited to an individual Participant’s Deferred Stock Account by reference to the total number
of shares of Company Stock acquired by the Trust with the proceeds of each transfer and the proportion that the Compensation included
in such transfer bears to the total of all Compensation transferred to the Trust.

 

		(b)	No Segregation of Assets. A Participant’s Deferred Stock Account is a bookkeeping
device used to track the value of the Participant’s deferred Compensation (and the Employer’s liability therefor).
No assets shall be reserved or segregated in connection with any Deferred Stock Account, and no Deferred Stock Account shall be
insured or otherwise secured.

 

		(c)	Dividends. All Stock Units credited to a Participant’s Deferred Stock Account shall
be credited with hypothetical cash dividends equal to the cash dividends that are declared and paid on Company Stock. On each record
date, the Plan Administrator shall determine the amount of cash dividends to be paid per share of Company Stock. On the payment
date of such dividend, the Plan Administrator shall credit an equal amount of hypothetical cash dividends to each Stock Unit. The
hypothetical cash dividends shall be converted into Stock Units by reference to the reinvestment of such dividends by the trustee
of the Trust as set forth in Section 7.

 

		(d)	No Assignment. Stock Units may not be sold, assigned, transferred, disposed of, pledged,
hypothecated or otherwise encumbered.

 

		6.	Distribution of Accounts.

 

		(a)	Executives. An Executive’s Deferred Stock Account shall be distributed to the Executive
(or, in the event of the Executive’s death, the Executive’s Beneficiary(ies)) in a lump sum upon the first to occur
of the Executive’s Separation from Service or the date of a Change in Control. In the event distribution is triggered by
the occurrence of a Change in Control, distribution will be made on the first day of the month next following the date of the Change
in Control. In the event distribution is triggered by the Executive’s Separation from Service, distribution will be made
on the first day of the third month following the date of the Executive’s Separation from Service; provided, however, that
if the Executive is a Specified Employee on the date of the Director’s Separation from Service, distribution shall instead
be made on the six month anniversary of the date of the Executive’s Separation from Service.

 

    	 	7	 

     

    

 

		(b)	Directors. A Director’s Deferred Stock Account shall be distributed to the Director
(or, in the event of the Director’s death, the Director’s Beneficiary(ies)) in a lump sum upon the first to occur of
the Director’s Separation from Service or the date of a Change in Control. In the event distribution is triggered by the
occurrence of a Change in Control, distribution will be made on the first day of the month next following the date of the Change
in Control. In the event distribution is triggered by the Director’s Separation from Service, distribution will be made on
the first day of the third month following the date of the Executive’s Separation from Service; provided, however, that if
the Executive is a Specified Employee on the date of the Director’s Separation from Service, distribution shall instead be
made on the six month anniversary of the date of the Executive’s Separation from Service.

 

		(c)	Medium of Payment. All payments shall be made in a number of shares of Company Stock equal
to the number of whole Stock Units credited to the Participant’s Deferred Stock Account on the distribution date. Fractional
shares shall be disregarded.

 

		(d)	Distribution on Account of Unforeseeable Emergency. Prior to the time that an amount would
become distributable under subsection (a) or (b), a Participant or Beneficiary may file a written request with the Plan Administrator
for accelerated payment of all or a portion of the amount credited to the Participant’s Deferred Stock Account based upon
an Unforeseeable Emergency. After an individual has filed a written request pursuant to this subsection (b), along with all supporting
material that may be required by the Plan Administrator from time to time, the Plan Administrator shall determine within sixty
(60) days (or such other number of days that is necessary if special circumstances warrant additional time) whether the individual
meets the criteria for an Unforeseeable Emergency. If the Plan Administrator determines that an Unforeseeable Emergency has occurred,
the Participant or Beneficiary shall receive a distribution from his or her Deferred Stock Account as of the day the Plan Administrator
finalizes the determination. However, such distribution shall not exceed the dollar amount necessary to satisfy the Unforeseeable
Emergency (plus amounts necessary to pay taxes reasonably anticipated as a result of the distribution) after taking into account
the extent to which the Unforeseeable Emergency is or may be relieved through reimbursement or compensation by insurance or otherwise
or by liquidation of the Participant’s assets (to the extent the liquidation of such assets would not itself cause severe
financial hardship).

 

		(e)	Withholding. The Employer shall withhold from amounts due under this Plan, any amount necessary
to enable the Employer to remit to the appropriate government entity or entities on behalf of the Participant as may be required
by the federal income tax provisions of the Code, by an applicable state’s income tax provisions, and by an applicable city,
county or municipality’s earnings or income tax provisions. Further, the Employer shall withhold from the payroll of, or
collect from, a Participant the amount necessary to remit on behalf of the Participant any Social Security or Medicare taxes which
may be required with respect to amounts deferred or accrued by a Participant hereunder, as determined by the Employer.

 

    	 	8	 

     

    

 

		(f)	Section 409A. The Plan is intended to comply with the applicable requirements of Section
409A of the Code and its corresponding regulations and related guidance, and shall be administered in accordance with Section 409A
of the Code to the extent Section 409A of the Code applies to the Plan. Notwithstanding anything in the Plan to the contrary, elections
to defer Compensation under the Plan, and distributions from the Plan, may only be made in a manner and upon an event permitted
by Section 409A of the Code. To the extent that any provision of the Plan would cause a conflict with the requirements of section
409A of the Code, or would cause the administration of the Plan to fail to satisfy the requirements of Section 409A of the Code,
such provision shall be deemed null and void to the extent permitted by applicable law.

 

		(g)	Vesting. In the event a Participant’s Separation from Service prior to becoming fully
vested in his or her Deferred Stock Account, the Participant shall forfeit the unvested portion of the Participant’s Deferred
Stock Account.

 

		7.	Trust.

 

		(a)	Grantor Trust. As soon as practicable after the Effective Date, the Bank shall establish
a grantor trust for the purposes set forth in this Plan. The Bank from time to time shall transfer to the Trust cash in an amount
equal to Participant’s deferred Compensation for the purpose of acquiring shares of Company Stock. In no event shall the
Bank issue or contribute shares of Company Stock directly to the Trust.

 

		(b)	General Unsecured Creditor. The Trust and its assets shall remain subject to the claims
of the Bank’s creditors. All benefit obligations under this Plan shall be paid from the general assets of the Bank, which
shall include the assets of the Trust in the event of the Bank’s insolvency. Any interest that the Participant may be deemed
to have under this Plan may not be sold, hypothecated or transferred (including, without limitation, transfer by gift), except
by will or the laws of descent and distribution. Shares issued to the Trust shall be issued in the name of the trustee. The trustee
shall invest all cash dividends on Company Stock in additional shares of Company Stock. The Company shall direct the trustee as
to the voting of Company Stock held in the Trust.

 

		(c)	Expenses. The Bank shall bear all expenses associated with the acquisition of Company Stock
by the Trust and the maintenance of the Trust.

 

		(d)	Unfunded Plan. The Plan is intended to be an unfunded plan which is maintained primarily
to provide deferred compensation benefits for a select group of “management or highly compensated employees” within
the meaning of Sections 201, 301, and 401 of ERISA, and to therefore be exempt from the provisions of Parts 2, 3, and 4 of Title
1 of ERISA.

 

		8.	No Acceleration of Benefits.

 

Notwithstanding any other provision in
this Plan to the contrary, the time or schedule for any payment of a Participant’s Deferred Stock Account under this Plan
shall not be accelerated under any circumstances.

 

    	 	9	 

     

    

 

		9.	Effect of Stock Dividends and Other Changes to Company Stock.

 

In the event of a stock dividend, stock
split or combination of shares, recapitalization or merger in which the Company is the surviving corporation or other change in
the Company’s capital stock, the number and kind of shares of Company Stock to be subject to the Plan and the maximum number
of shares which are authorized for distribution under the Plan shall be appropriately adjusted by the Plan Administrator, whose
determination shall be binding on all persons.

 

		10.	Interpretation and Administration of the Plan.

 

The Plan Administrator has the exclusive
and discretionary authority to construe and to interpret the Plan, to decide all questions of eligibility for benefits, to determine
the amount and manner of payment of such benefits and to make any determinations that are contemplated by (or permissible under)
the terms of this Plan, and its decisions on such matters will be final and conclusive on all parties. Any such decision or determination
shall be made in the absolute and unrestricted discretion of the Plan Administrator, even if (1) such discretion is not expressly
granted by the Plan provisions in question, or (2) a determination is not expressly called for by the Plan provisions in question,
and even though other Plan provisions expressly grant discretion or call for a determination. As a result, benefits under this
Plan will be paid only if the Plan Administrator decides in its discretion that the applicant is entitled to them. In the event
of a review by a court, arbitrator or any other tribunal, any exercise of the Plan Administrator’s discretionary authority
shall not be disturbed unless it is clearly shown to be arbitrary and capricious. The Plan Administrator may consult with counsel,
who may be counsel to the Employer, and shall not incur any liability for action taken in good faith in reliance upon the advice
of counsel. The Plan Administrator shall interpret this Plan for all purposes in accordance with Code Section 409A and the regulations
thereunder and any provision of the Plan shall be deemed modified to the extent necessary to comply with Code Section 409A and
the regulations thereunder.

 

		11.	Term of the Plan.

 

The Plan shall become effective as of the
Effective Date and continue in effect unless terminated by action of the Board. Any termination of the Plan by the Board shall
not alter or impair any of the rights or obligations for any benefit previously deferred under the Plan.

 

		12.	Amendment and Termination of the Plan.

 

		(a)	Amendment. The Board has the right in its sole discretion to amend this Plan in whole or
in part at any time and in any manner, including the manner of making deferral elections, the terms on which distributions are
made, and the form and timing of distributions. However, except for mere clarifying amendments necessary to avoid an inappropriate
windfall, no Plan amendment shall reduce the amount credited to a Participant’s Deferred Stock Account as of the date such
amendment is adopted. Any amendment shall be in writing and adopted by the Board. All Participants and Beneficiaries shall be bound
by such amendment. Any amendments made to the Plan shall be subject to any restrictions on amendment that are applicable to ensure
continued compliance under Section 409A.

 

    	 	10	 

     

    

 

		(b)	Termination. The Company expects to continue this Plan, but does not obligate itself to
do so. The Board has the right in its sole discretion to discontinue and terminate the Plan at any time, in whole or in part, for
any reason (including a change, or an impending change, in the tax laws of the United States or any State). Termination of the
Plan will be binding on all Participants (and a partial termination shall be binding upon all affected Participants) and their
Beneficiaries, but in no event may such termination reduce the amounts credited at that time to any Participant’s Deferred
Stock Account. If this Plan is terminated (in whole or in part), the termination resolution shall provide for how amounts theretofore
credited to affected Participants’ Deferred Stock Accounts will be distributed.

 

		(c)	Section 409A Restrictions. This Section is subject to the same restrictions related to compliance
with Section 409A that generally apply to the Plan. In accordance with these restrictions, the Company intends to have the maximum
discretionary authority to terminate the Plan and make distributions in connection with a Change in Control, and the maximum flexibility
with respect to how and to what extent to carry this out following a Change in Control as is permissible under Section 409A. The
previous sentence contains the exclusive terms under which a distribution may be made in connection with any change in control
with respect to deferrals made under the Plan.

 

		13.	Rights Under the Plan.

 

The Plan shall not constitute or be evidence
of any agreement or understanding, express or implied, that the Employer will retain any Participant as an Executive or Director
for any period of time.

 

		14.	Beneficiary.

 

A Participant may designate in a writing
delivered to the Plan Administrator, one or more Beneficiaries (which may include a trust) to receive any distributions under the
Plan after the Participant’s death. If some but not all of the persons designated by a Participant to receive his or her
Deferred Stock Account at death predecease the Participant, the Participant’s surviving Beneficiaries shall be entitled to
the portion of the Participant’s Deferred Stock Account intended for such pre-deceased persons in proportion to the surviving
Beneficiaries’ respective shares. If no designation is in effect at the time of a Participant’s death (as determined
by the Plan Administrator) or if all persons designated as Beneficiaries have predeceased the Participant, then the payments to
be made pursuant to this Section shall be distributed as follows:

 

		(a)	If the Participant is married at the time of his/her death, all payments made pursuant to this
Section shall be paid to the Participant’s spouse; and

 

		(b)	If the Participant is not married at the time of his/her death, all payments made pursuant to this
Section shall be paid to the Participant’s estate.

 

The Plan Administrator shall determine
whether a Participant is “married” and shall determine a Participant’s “spouse” based on the state
or local law where the Participant has his or her primary residence at the time of death. The Plan Administrator is authorized
to make any applicable inquires and to request any documents, certificates or other information that it deems necessary or appropriate
in order to make the above determinations. Prior to the time the Participant’s Deferred Stock Account is distributed under
Section 4(a), the Participant’s Beneficiary may apply for a distribution under Section 4(b) (relating to a distribution on
account of an Unforeseeable Emergency). Any claim to be paid any amounts standing to the credit of a Participant in connection
with the Participant’s death must be received by the Plan Administrator at least fourteen (14) days before any such amount
is paid out by the Plan Administrator. Any claim received thereafter is untimely, and it shall be unenforceable against the Plan,
the Company, the Plan Administrator or any other party acting for one or more of them.

 

    	 	11	 

     

    

 

		15.	Notice.

 

All notices and other communications required
or permitted to be given under this Plan shall be in writing and shall be deemed to have been duly given if delivered personally
or mailed first class, postage prepaid, as follows: (a) if to the Plan Administrator - at the Bank’s principal business address
to the attention of the Bank’s Executive Vice President, Human Resources Officer; (b) if to any Participant - at the home
address of the Participant as reflected in the records of the Bank at the time of sending the notice or other communication.

 

		16.	Construction.

 

The Plan shall be construed and enforced
according to the laws of the State of New Jersey, unless federal law applies. All transactions under this Plan shall also be subject
to compliance with applicable securities laws. Headings and captions are for convenience only and have no substantive meaning.
Reference to one gender includes the other, and references to the singular and plural include each other.

 

		17.	Claims Procedure.

 

		(a)	Claim. A person who believes that he is being denied a benefit to which he is entitled under
this Plan (hereinafter referred to as a “Claimant”) may file a written request for such benefit with the Plan Administrator,
setting forth his claim. The request must be addressed to the Bank’s Executive Vice President, Human Resources Officer, at
the Bank’s then principal place of business.

 

		(b)	Claim Decision. Upon receipt of a claim, the Plan Administrator shall advise the Claimant
that a reply will be forthcoming within ninety (90) days and shall, in fact, deliver such reply within such period. The Plan Administrator
may, however, extend the reply period for an additional ninety (90) days for reasonable cause. If the claim is denied in whole
or in part, the Plan Administrator shall adopt a written opinion, using language calculated to be understood by the Claimant, setting
forth:

 

		(i)	The specific reason or reasons for such denial;

 

		(ii)	The specific reference to pertinent provisions of this Plan on which such denial is based;

 

		(iii)	A description of any additional material or information necessary for the Claimant to perfect his
claim and an explanation why such material or such information is necessary;

 

		(iv)	Appropriate information as to the steps to be taken if the Claimant wishes to submit the claim
for review; and

 

    	 	12	 

     

    

 

		(v)	The time limits for requesting a review of the decision and for review of the decision.

 

		(c)	Request for Review. With sixty (60) days after the Claimant receives the written
opinion described above, the Claimant may request in writing that the Plan Administrator review its initial determination. The
request must be addressed to the Bank’s Executive Vice President, Human Resources Officer, at the Bank’s then principal
place of business. The Claimant or his duly authorized representative may, but need not, review the pertinent documents and submit
issues and comments in writing for consideration by the Plan Administrator. If the Claimant does not request a review of the Plan
Administrator’s initial determination within such sixty (60) day period, the Claimant shall be barred and stopped from challenging
the Plan Administrator’s initial determination.

 

		(d)	Review of Decision. Within sixty (60) days after receipt of a request for review, the Plan
Administrator shall review its initial determination. After considering all materials presented by the Claimant, the Plan Administrator
shall provide the Claimant with a written opinion, written in a manner calculated to be understood by the Claimant, setting forth
the specific reasons for the decision and containing specific references to the pertinent provisions of this Plan on which the
decision is based. If special circumstances require that the sixty (60) day time period be extended, the Plan Administrator shall
so notify the Claimant and shall render the decision as soon as possible, but no later than one hundred twenty (120) days after
receipt of the request for review.

 

    	 	13

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