Document:

Exhibit 10.7

 

 

August 20, 2016

 

AVRA MEDICAL ROBOTICS, INC.

 

Code of Business Conduct and Ethics

for Employees and Directors

 

Introduction

 

This is the Code of Conduct
for AVRA Medical Robotics, Inc. Employees and Directors (the “Code”). This Code sets out ten important rules that we,
as members of the Board of Directors of AVRA Medical Robotics, Inc. (the “Board”), and as employees, have chosen to
guide us during our service to AVRA Medical Robotics, Inc. The Board’s Audit Committee administers this Code. Annually, each
director and senior management employee acknowledges in writing the receipt, review, and understanding of this Code. Every employee
is expected to abide by the spirit and intent of the Code. No code can anticipate every situation that may arise nor can it replace
the thoughtful behavior of an ethical employee or director. Rather, this Code provides guidance for handling situations as they
arise.

 

We raise any questions
or concerns about this Code or any related situation to the Chair of the Audit Committee, who may consult with the Committee as
a whole, AVRA Medical Robotics, Inc. Corporate Secretary, Chief Compliance Officer or other counsel.

 

Objective—Earning and Maintaining Trust

 

This Code is part of AVRA
Medical Robotics, Inc.’s commitment to integrity. This Code focuses on areas of ethical risk, provides guidance to help us
recognize and deal with ethical issues, provides mechanisms to report unethical conduct, and helps foster a culture of honesty
and accountability. The ten rules in this Code guide our handling of ethical matters and describe
the values that guide us in our decisions, particularly the most essential value – trust. Trust means that others can rely
on us to speak truthfully, to honor our commitments, and to treat others fairly. AVRA Medical Robotics, Inc.’s reputation
for integrity is one of our most valuable assets. AVRA Medical Robotics, Inc. must earn and keep the trust of investors, consumers,
customers, business partners, employees, and the general public. Maintaining and improving this trust requires that we follow this
Code’s principles and rules. 

 

    	 	1	 

     

    

 

 

 

The Rules

 

Rule #1. Give AVRA Medical Robotics, Inc. our complete business
loyalty. 

 

While we serve the Company,
AVRA Medical Robotics, Inc. shareholders expect us to make business decisions without the influence of any improper personal interest
or gain. Therefore, we avoid situations in which our personal interests interfere, or appear to interfere, in any way with AVRA
Medical Robotics, Inc.’s interests. Conflicts arise when our personal interests make it difficult to perform our responsibilities
objectively or effectively. Conflicts of interest also may arise when we, or a family member, receive improper personal benefits
because of our positions as employees or members of the Board.

 

Situations involving a
conflict of interest are not always obvious or easy to resolve. Therefore, we bring any questions concerning potential conflicts
to the Chair of the Audit Committee. We disclose immediately to the Chair of the Audit Committee any situation that could involve
an actual or potential conflict of interest. Family members for purposes of this Code include a spouse, parents, children, siblings,
fathers and mothers-in-law, sons and daughters-in-law, brothers and sisters-in-law. and anyone who shares the employee’s
or director’s home.

 

The Chair of the Audit
Committee may consult with the Committee as a whole, the Corporate Secretary, General Counsel, Chief Compliance Officer or other
counsel regarding any potential conflicts.

 

Examples of common conflicts
that we avoid or disclose to the Chair of the Audit Committee include the following:

 

•
Personal benefits and gifts. We do not receive a personal benefit from any person or firm seeking or currently doing
business with AVRA Medical Robotics, Inc. Personal benefits include consultant fees, exercisable stock options or other remuneration,
non-cash gifts, meals or entertainment (other than those of nominal value and for ordinary business purposes), or any other benefit
that a reasonable person may conclude could affect our objectivity. We never accept cash or cash equivalents, bribes or kickbacks.

 

•
Competition. We do not compete with AVRA Medical Robotics, Inc.

 

•
Personal use of AVRA Medical Robotics, Inc. assets. We do not use AVRA Medical Robotics, Inc. assets, labor, resources,
or information except for legitimate AVRA Medical Robotics, Inc. business purposes.

 

    	 	2	 

     

    

 

 

 

•
Loans and Guarantees. We do not accept loans or guarantees from AVRA Medical Robotics, Inc.

 

•
Compensation from non-Avra Medical Robotics, Inc .sources. We do not accept compensation (in any form) for
services we perform for AVRA Medical Robotics, Inc. from any source other than AVRA Medical Robotics, Inc.

 

•
Conflicts arising from a role at other organizations. We sometimes serve as a director, officer or employee of, serve
as an advisor or consultant to, are a significant investor in, or have a similar role at another organization. If we encounter
a situation where our current role in that other organization could have the potential to conflict, or appear to conflict with
AVRA Medical Robotics, Inc. interests, we immediately:

 

(i) inform the Chair of the Audit Committee,

(ii) take appropriate action, including recusing ourselves
from participation in the Board’s or Committee’s discussion and consideration of any matter related to or giving rise
to the potential conflict,

(iii) take all actions requested by the Chair of the Audit
Committee or the Chair’s designee, and

(iv) take any other action which is necessary or appropriate
under the circumstances.

 

Prior to accepting a new
role at another organization, we consider whether that role could have the potential to conflict, or appear to conflict with AVRA
Medical Robotics, Inc. interests and follow these same steps.

 

Our family members’
activities also may create a situation involving a conflict of interest and we disclose any family member’s relationship
that involves an actual or potential conflict of interest with AVRA Medical Robotics, Inc.

 

Rule #2. Never trade on inside information. 

 

We do not trade securities
while we have material non-public information. Material information includes anything likely to influence a potential investor’s
decision to trade in securities including, but not limited to, information about mergers, earnings, projects, and changes in management.
In addition to AVRA Medical Robotics, Inc. securities, this restriction applies to the trading of the securities of AVRA Medical
Robotics, Inc. customers, suppliers, or other business partners if we have material non-public information about them. Further,
if we cannot make trades because we possess material non-public information, neither can our family members.

 

    	 	3	 

     

    

 

 

 

Rule #3. Honor Confidentiality. 

 

We maintain the confidentiality
of all information entrusted to us during our service to AVRA Medical Robotics, Inc. We share that information only when AVRA Medical
Robotics, Inc.’s Corporate Secretary or General Counsel advises that disclosure is authorized or legally mandated. Confidential
information includes all non-public information related to AVRA Medical Robotics, Inc. We also exercise due care in handling AVRA
Medical Robotics, Inc. proprietary and confidential information. We avoid discussing this information in public areas or with family
members. Our obligation to preserve AVRA Medical Robotics, Inc. confidential information is ongoing, even after our service on
the Board concludes.

 

Rule #4. Never Misappropriate Corporate Opportunities.
Ensure Proper Use of Corporate Assets. 

 

We owe a duty to AVRA Medical
Robotics, Inc. to advance its legitimate interests when the opportunity to do so arises. We do not use opportunities that we discover
using AVRA Medical Robotics, Inc. corporate property, information, or position for our personal benefit unless AVRA Medical Robotics,
Inc.’s disinterested directors determine that AVRA Medical Robotics, Inc. will not pursue such opportunity. We use corporate
property, information, or position only for legitimate business purposes; never for personal gain. We protect AVRA Medical Robotics,
Inc. assets and ensure their efficient use.

 

Rule #5. We Provide Accurate Information to AVRA Medical Robotics,
Inc. 

 

AVRA Medical Robotics,
Inc. relies on information that we provide when it prepares disclosure documents and regulatory filings and for other purposes.
We are truthful, forthright, and accurate when preparing director questionnaires, stock information forms, expense reimbursement
forms, and other documents for AVRA Medical Robotics, Inc. use.

 

Rule #6. Comply with Laws, Rules and Regulations. 

 

We do not instruct others
to commit illegal or unethical acts for any reason when they are conducting business for AVRA Medical Robotics, Inc.

 

Each of us is an AVRA Medical
Robotics, Inc. representative and we deal fairly with others (including AVRA Medical Robotics, Inc. customers, suppliers, competitors,
and employees) when conducting AVRA Medical Robotics, Inc. business. We do not take unfair advantage of anyone through manipulation,
concealment, abuse of privileged information, misrepresentation of material facts, or any other unfair dealing practice.

 

    	 	4	 

     

    

 

 

 

Rule #7. Honor AVRA Medical Robotics, Inc. Values. 

 

No set of rules could answer
every question that we face as employees. When these rules do not address a situation, we refer to AVRA Medical Robotics, Inc.
values for guidance. These are:

 

•
We inspire trust.

•
We act like owners.

•
We keep it simple.

•
We are open and inclusive.

•
We tell it like it is.

•
We lead from the head and the heart.

•
We discuss. We decide. We deliver.

 

As employees and directors
of AVRA Medical Robotics, Inc., we champion these values and encourage all AVRA Medical Robotics, Inc. employees and directors
to follow them. We ask questions when we are not sure what to do. Fortunately, we have many places to turn for help, among them,
the Corporate Secretary, the General Counsel, the Chief Compliance Officer, other counsel, and outside advisors. We never hesitate
to consult them.

 

Rule #8. Report Any Concerns. 

 

If we suspect a violation
of this Code, we promptly communicate that concern to the Chair of the Audit Committee. We communicate any concerns about the Chair
of the Audit Committee to the Chairman of the Board.

 

Rule #9. Address Reports of Concerns about Director Behavior.

 

If an employee or director
violates this Code, we all suffer consequences, especially AVRA Medical Robotics, Inc. Ignoring violations leads to greater problems
and damages trust. The Audit Committee or its designee promptly addresses reports of concerns about employee or director behavior
and carefully looks into the facts and circumstances surrounding any report. The Audit Committee or its designee conducts all investigations
fairly and considers all relevant information. The Audit Committee actively addresses any violations of this Code. Upon advice
of legal counsel, AVRA Medical Robotics, Inc. may report violations of the Code that involve illegal behavior to the appropriate
authorities.

 

    	 	5	 

     

    

 

 

 

Rule #10. We Encourage Others to Report Concerns and We Do Not
Retaliate. 

 

As employees and directors,
we support management’s efforts to promote honest behavior and an ethical environment at AVRA Medical Robotics, Inc. If anyone
suspects that there has been a violation of the law, this Code, or any AVRA Medical Robotics, Inc. policy, we encourage them to
raise that concern so that AVRA Medical Robotics, Inc. can act quickly. These concerns can be raised immediately and anonymously
by calling the AVRA Medical Robotics, Inc. Integrity HelpLine.

 

AVRA Medical Robotics,
Inc. does not tolerate retaliation against anyone for raising a concern in good faith. Raising good faith concerns is vital to
AVRA Medical Robotics, Inc.’s success.

 

Waivers and Amendments 

 

In the unlikely event that
a waiver of this Code would be in AVRA Medical Robotics, Inc.’s best interests, only the Board may grant such waiver.

 

Only the Board may amend
this Code. AVRA Medical Robotics, Inc. promptly discloses to its shareholders (by posting on www.avra medical.com or making
other required public disclosure) any waiver or amendment to this Code.

 

Barry F. Cohen

Chairman of the Board and Chief Executive Officer

 

A.   Christian
Schauer

Chief Financial Officer

 

    	 	6sbph-ex1018_487.htm

 

 

Exhibit 10.18 

	

	
 

SPRING BANK PHARMACEUTICALS, INC.

 

NON-EMPLOYEE DIRECTOR COMPENSATION POLICY

 

(Effective as of February 9, 2017)

 

The Board of Directors of Spring Bank Pharmaceuticals, Inc. (the “Company”) has approved the following Non-Employee Director Compensation Policy (this “Policy”) which establishes compensation to be paid to non-employee directors of the Company, effective as of February 9, 2017 (“Effective Time”), to provide an inducement to obtain and retain the services of qualified persons to serve as members of the Company’s Board of Directors.

 

Applicable Persons

 

This Policy shall apply to each director of the Company who is not an employee of the Company or any Affiliate (each, a “Non-Employee Director”).  “Affiliate” shall mean an entity which is a direct or indirect parent or subsidiary of the Company, as determined pursuant to Section 424 of the Internal Revenue Code of 1986, as amended.

 

Stock Option Grants 

 

All stock option amounts set forth herein shall be subject to automatic adjustment in the event of any stock split or other recapitalization affecting the Company’s common stock.

 

Annual Stock Option Grants

 

Annually, each Non-Employee Director who has served as a director for at least six (6) months shall be granted a non-qualified stock option to purchase 5,500 shares of the Company’s common stock under the Company’s 2015 Stock Incentive Plan (the “Stock Plan”) on the date of the Company’s annual meeting of stockholders (the “Annual Meeting Date”).  The shares shall be automatically and without any further action required by the Board of Directors issued as of the Annual Meeting Date.  

 

Initial Stock Option Grant for Newly Appointed or Elected Directors

 

Each new Non-Employee Director shall be granted a non-qualified stock option to purchase 11,000 shares of the Company’s common stock under the Stock Plan at the first regularly scheduled meeting of the Board of Directors on or after his or her initial appointment or election to the Board of Directors.

 

Terms for All Option Grants

 

Unless otherwise specified by the Board of Directors or the Compensation Committee at the time of grant, all options granted under this Policy shall (i) vest in equal monthly installments 

at the end of each successive month following the grant date until (a) for all initial stock option grants, the third anniversary of the grant date and (b) for all annual stock option grants, the first anniversary of the grant date, in each case subject to the Non-Employee Director’s continued service on the Board of Directors; (ii) have an exercise price equal to the fair market value of the Company’s common stock as determined in the Stock Plan on the grant date; (iii) terminate ten years after the grant date; (iv) accelerate in full upon the occurrence of of a Change in Control; and (v) contain such other terms and conditions as set forth in the form of option agreement approved by the Board of Directors or the Compensation Committee prior to the grant date.

 

“Change in Control” shall mean any of the following: 

 

	
 
	
(a)
	
the acquisition by an individual, entity or group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (the “Exchange Act”) (a “Person”) of beneficial ownership of any capital stock of the Company if, after such acquisition, such Person beneficially owns (within the meaning of Rule 13d-3 under the Exchange Act) more than 50% of either (x) the then-outstanding shares of common stock of the Company (the “Outstanding Company Common Stock”) or (y) the combined voting power of the then-outstanding securities of the Company entitled to vote generally in the election of directors (the “Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection any acquisition directly from the Company will not be a Change in Control;

 

	
 
	
(b)
	
the consummation of a merger, consolidation, reorganization, recapitalization or share exchange involving the Company or a sale or other disposition of all or substantially all of the assets of the Company (a “Business Combination”), unless, immediately following such Business Combination, the individuals and entities who were the beneficial owners of the Outstanding Company Common Stock and Outstanding Company Voting Securities immediately prior to such Business Combination beneficially own, directly or indirectly, more than 50% of the then-outstanding shares of common stock and the combined voting power of the then-outstanding securities entitled to vote generally in the election of directors, respectively, of the resulting or acquiring corporation in such Business Combination (which shall include a corporation that as a result of such transaction owns the Company or substantially all of the Company’s assets either directly or through one or more subsidiaries); or

 

	
 
	
(c)
	
the liquidation or dissolution of the Company; 

 

provided that, where required to avoid additional taxation under Section 409A of the Internal Revenue Code and the guidance issued thereunder, the event that occurs must also be a “change in the ownership or effective control of a corporation, or a change in the ownership of a substantial portion of the assets of a corporation” as defined in Treasury Reg. § 1.409A‐3(i)(5).     

 

Annual Fees

 

Each Non-Employee Director serving on the Board of Directors and the Audit Committee, Compensation Committee and/or Nominating and Corporate Governance Committee, as applicable, shall be entitled to the following annual amounts (the “Annual Fees”):   

2

 

 

 

 

			
	
Board of Directors or Committee of Board of Directors
	
Annual Retainer Amount for Member
	
Annual Retainer Amount for Chairman

	
Board of Directors
	
$35,000
	
$65,0001

	
Audit Committee
	
$7,500
	
$15,000

	
Compensation Committee
	
$5,000
	
$10,000

	
Nominating and Corporate Governance Committee
	
$3,750
	
$7,500

 

Except as otherwise set forth in this Policy, all Annual Fees shall be paid for the period from January 1 through December 31 of each year. All Annual Fees shall be paid in either cash in the amount of each Non-Employee Director’s Annual Fees or such number of shares of the Company’s common stock as is equal to the full dollar amount of each Non-Employee Director’s Annual Fees (as calculated below under “Calculation of Shares and Grant Terms”).

 

Election

 

Each Non-Employee Director shall make an annual election on a form provided by the Company, indicating whether cash or common stock is elected, prior to December 31 of the year prior to the payment of the Annual Fees; provided, however, for the fiscal year ending December 31, 2017, such election shall be made prior to March 31, 2017 for the final nine month period of fiscal 2017.  In the event that a Non-Employee Director has not submitted his or her election for the applicable year by December 31, then the election of such Non-Employee Director shall be deemed to be the same as the election made by such Non-Employee Director for the prior year, and if no election has been made, then the Non-Employee Director shall receive all Annual Fees in cash. Each newly elected or appointed Non-Employee Director shall make an election prior to the beginning of the next calendar quarter after his or her initial appointment or election.  

 

Payments

 

Payments payable to Non-Employee Directors shall be paid quarterly in arrears as of the last business day of each fiscal quarter, provided that (i) the amount of such payment shall be prorated for any portion of such quarter that such director was not serving on the Board or a committee and (ii) no fee shall be payable in respect of any period prior to the date such director was elected to the Board or a committee.

 

Calculation of Shares and Grant Terms

 

If shares of common stock are to be received as payment, the number of shares shall be calculated by dividing the applicable quarterly dollar amount that the Non-Employee Director 

	
	 

	
1 
	
 Includes $35,000 as a member plus $30,000 for service as chairman of the board.  The chairman of the board only receives an additional retainer for such service if he or she is a non-employee director. 

 

3

 

has elected to be paid in shares of common stock by the Fair Market Value (as defined in the Stock Plan) of the shares of common stock of the Company on the first business day of the quarter following the quarter in which the fees are earned (the “Calculation Date”) (rounded down to the nearest whole number so that no fractional shares shall be issued).  The shares shall be automatically and without any further action required by the Board of Directors issued as of the Calculation Date.  

 

If  the Non-Employee Director ceases providing services on the Board, the number of shares to be received by a Non-Employee Director shall be calculated by dividing the applicable prorated quarterly dollar amount that the Non-Employee Director has elected to be paid in shares of common stock by the Fair Market Value (as defined in the Stock Plan) of the shares of common stock of the Company on the last day of  service (rounded down to the nearest whole number so that no fractional shares shall be issued).  The shares shall be automatically and without any further action required by the Board of Directors issued as of such date. 

 

Expenses

 

Upon presentation of documentation of such expenses reasonably satisfactory to the Company, each Non-Employee Director shall be reimbursed for his or her reasonable out-of-pocket business expenses incurred in connection with attending meetings of the Board of Directors and committees thereof or in connection with other business related to the Board of Directors. 

 

Amendments

 

The Compensation Committee shall periodically review this Policy to assess whether any amendments in the type and amount of compensation provided herein should be made and shall make recommendations to the Board of Directors for its approval of any amendments to this Policy.

4

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