Document:

DEVELOPMENT AND MANUFACTURING AGREEMENT

 

This Development and Manufacturing Agreement
(“Agreement”) is made and entered into as of the ___ day of October, 2012, by and between MIS-Robotics GmbH, a German
corporation with offices at Am Technologiepark 12, 82229 Seefeld, HRB 200457 Amtsgericht München (“MIS”), and
RG Mechatronics GmbH, a German corporation with offices at Am Technologiepark 12, 82229 Seefeld, HRB 172994 Amtsgericht München
(“RGM”).

 

RECITALS

 

WHEREAS, RGM is a specialist in the development
of intelligent actuators and manipulators for commercial applications, including automotive, aeronautics, space, medical and general
engineering; and

 

WHEREAS, MIS is a company 80% owned by AVRA
Surgical Robotics, Inc. (“AVRA”), a U.S. company that is developing intelligent manipulators for medical applications
for worldwide distribution; and

 

WHEREAS, MIS and RGM want to enter into
a long-term agreement under which RGM will provide to MIS all engineering services to develop and initially manufacture robotic
components and systems for medical applications, and the infrastructure to initially manufacture these products (the “Products”);

 

NOW, THEREFORE, MIS and RGM (hereinafter:
“the Parties”) agree as follows:

 

1.          Purpose
of this Agreement. The purpose of this Agreement is to develop and initially manufacture robotic systems for medical applications
under a detailed plan that includes specifications, budgets and timeframes in accordance with the terms of the Agreement (the “Purpose”).

 

    	 

    	 	

    
 

2.          Term
of this Agreement. The term of this Agreement shall be the longer of 2 years from the date it is signed by both parties or
upon the fulfillment of the Purpose for each Product, the development of which commences with 2 years from the date this Agreement
is signed by both parties. It ends automatically for each robotic system or other produce without requiring notice once the Purpose
is fulfilled for a Product. The Agreement can be terminated as follows:

 

		a.	If the Parties cannot reach an agreement, within one
(1) month, on any issue presented to them by the JDC (Sec. 4), each Party may to terminate the Agreement with one (1) month notice.

 

		b.	A Party is entitled to terminate this Agreement without
notice in the event of any material breach of this Agreement attributable to the other Party which is not cured within one (1)
month after the non-breaching party has given the other Party a written notice of the breach.

 

Nothing in this Agreement is intended to affect the statutory
right of each Party to terminate this agreement for just cause ("'aus wichtigem Grund'').

 

3.          Role
of Each Party. MIS shall establish the specifications for each robotic system. RGM shall provide all work, labor and services
required to realize the development of the Products.

 

4.          Joint
Development Committee. The parties shall establish a joint development committee (“JDC”) consisting of a representative
of each party to specify, in sufficient detail to carry out the Purpose, the following:

 

		a.	The performance and design specifications of the Products;

 

    	 

    	 	

    
 

		b.	The budget for development of the Products (the “Budget”),
such budget is to specify RGM’s remuneration pursuant to Sec. 13 lit. a; and

 

		c.	The time frames, including milestones, within which the
Products will be developed.

 

The JDC shall have the authority to amend the performance and
design specifications, budgets and timeframes as necessary to achieve the Purpose. The JDC will hold regular meetings at least
once a month. The written minutes of the meetings will be kept and signed by each member of the JDC. All decisions of the JDC including
(without limitation) specifications pursuant to this Sec. 4 or approvals of Change Orders pursuant to Sec. 5 hereof shall be made
unanimously. If the JDC cannot reach a decision on any issue, the Parties will act in good faith and use their best efforts to
resolve it.

 

5.          Change
Orders. In performing its work, RGM shall comply with reasonable requests by MIS for changes and additions. Changes and additions
shall be presented to the JDC for approval. Where change orders result in additional costs of modifications of the development,
RGM shall submit a statement of changes for approval by the JDC, by which approval they shall be deemed incorporated into the development,
budget, timeframes and milestones.

 

6.          Obligation
to Share and Exchange Information. Each party shall make available to the other all relevant information necessary or appropriate
to carry out the project which is within its possession, custody or control.

 

7.          Compliance
with Specifications. RGM will carry out its work to comply with the specifications, budget and timeframes established by the
JDC.

 

    	 

    	 	

    
 

8.          Delivery.
When completed, RGM shall turn over for acceptance by MIS each Product to MIS together with all drawings, designs and specifications,
as well as any tooling and other things purchased by RGM under the budget or with MIS’s approval (Sec. 13 lit. f), save to
the extent such toolings and other things continue to be necessary for the completion by RGM of the Purpose. The Purpose is deemed
to occur for each Product upon Acceptance and the delivery of the null series of the Product ready for manufacturing.

 

9.          Acceptance
Procedure. During the course of development of a Product and after RGM delivers a finished Product, MIS shall perform, in the
presence of RGM representatives,

 

such procedures it deems necessary to confirm that each system
meets the specifications established for it. The results of the Acceptance Procedure, including the defects (if any) of the Products
having become apparent during the Acceptance Procedure, shall be recorded in written minutes, such minutes to be signed by both
Parties.

 

10.          Cooperation.
The parties agree that the performance of this Agreement requires the parties to cooperate in good faith, and to use their best
efforts and deal fairly with one another in order to carry out the Purpose.

 

11.          
Exclusivity. Except with the express prior written consent of MIS, during the time of this Agreement is in effect and for a
period of two years thereafter, RGM shall not engage in any other development or manufacturing work in the area of robotic systems
and tools for medical applications, including surgery, diagnostics and other medical applications relating to the treatment of
a patient, whether for its own agent or for any third-party.

 

12.          Confidentiality.
MIS and RGM shall keep confidential the existence and terms of this Agreement and information exchanged by the parties,
vis-a-vis third parties, and shall require its employees to acknowledge in writing that each will maintain this
confidentiality to the extent the law allows. RGM shall obtain prior written approval of MIS to engage third parties or
freelancers to carry out any part of the development work and require any of them to acknowledge in writing the obligation to
maintain confidentiality. Notwithstanding the obligation to maintain confidentiality, this Agreement may be disclosed to the
extent required by the rules and regulations of the U.S. Securities and Exchange Commission and any other governmental
agency. The obligation to maintain confidentiality shall survive the expiration of this Agreement as long as the information
has not become public.

 

    	 

    	 	

    
 

13.          Remuneration.

 

		a.	MIS shall pay RGM for its work, labor and services on
a time and material basis that will be stated in the budget for development established by the JDC.

 

		b.	Charges for the work will be adjusted from time-to-time
and at least once a year by the JDC for significant increases or decreases in costs RGM incurs.

 

		c.	Charges for the work will be increased to account for
the obligation to pay statutory VAT in effect at the time the work is performed or costs related to the work are incurred.

 

		d.	RGM shall present invoices to MIS monthly and may include
the cost of materials and components as incurred. All invoices shall be payable within 30 days as from the invoice date.

 

		e.	Reservation of Title: Title to all tools, materials,
components, samples and prototypes delivered to MIS by RGM pursuant to Sec. 8, and to any intellectual property relating thereto,
passes to MIS with full payment of all invoices issued by RGM in relation to the works so delivered by RGM.

 

    	 

    	 	

    
 

		f.	Any costs not included in a budget approved by the JDC
must be approved in writing by MIS in advance.

 

		g.	RGM represents and warrants that the robotic systems
that it delivers will comply with the specifications established by the JDC. Except for this representation of warranty, RGM assumes
no liability, legal or factual, to MIS.

 

		h.	RGM does not make any representation or warranty that
the results of its work will not infringe on any third-party intellectual property rights.

 

Excepts for losses resulting from
a risk of liability that can be insured, the liability of RGM and MIS on any basis will be limited to 20 percent of the amounts
MIS pays to RGM for its work.

 

14.          Third-Party
Intellectual Rights: RMG is not aware of any third-party intellectual property rights that may be necessary to acquire in order
to have the freedom to manufacture, distribute and sell the systems it is developing for MIS. If, during RGM's works, it becomes
apparent that the successful realization of the Project requires the use of third-party intellectual property rights, RGM shall
promptly inform MIS. MIS will decide whether such intellectual property shall be licensed or whether the work shall be modified
to the effect that the results do not infringe any third-party intellectual property rights.

 

15.          Prior
Intellectual Property Rights. Each party remains owner of the inventions made, the intellectual property rights owned and the
knowhow developed by it prior to the Project (hereinafter jointly “Prior Intellectual Property Rights”). To the extent
that Prior Intellectual Property Rights of RGM are necessary for the use of the results of RGM’s works for medical purposes,
RGM shall grant MIS an indefinite, nonexclusive, sub-licenseable worldwide license to use such Prior Intellectual Property Rights
at fair arms-length terms.

 

    	 

    	 	

    
 

16.          New
Intellectual Property Rights. All rights to an intellectual property resulting from RGM's works under this Agreement
shall be MIS's property, subject only to Sec. 13 lit. e hereof (Reservation of Title). To the extent this intellectual
property cannot be transferred (such as. e.g., copyrights governed by German law), RGM shall grant MIS an indefinite,
exclusive, sub-licenseable, transferrable, unlimited worldwide right to use and exploit such intellectual property, this
right shall be exclusive and save as stipulated in Sec. 17 even RGM shall not be entitled to use and exploit such
intellectual property. To the extent that any inventions made in the course of RGM’ s works under this Agreement are
employee inventions, as defined in the German Employee Inventions Act. RGM shall assume such inventions without reservation
and in a timely manner, and shall transfer them to MIS. MIS shall hold RGM free and harmless of any claims to compensation
based on the German Employee Inventions Act by RGM·s employees.

 

17.          Exploitation
Rights to New Intellectual Property Rights. MIS shall grant RGM a worldwide nonexclusive, nontransferable,
sub-licenseable right to use and exploit the results of its works under this Agreement, free of charge, in any area other
than for medical purposes.

 

18.          Non-Contest
Clause. RGM shall not seek to invalidate, whether by way of nullity action or by way of opposition. any intellectual property
rights arising under this Agreement, nor shall RGM support any third party in such challenge.

 

19.          Effective
Day. This agreement shall be in effect on the date on which the last party hereto signs this Agreement.

 

    	 

    	 	

    
 

20.          Entire
Agreement. This Agreement contains all the agreements and understandings between the parties. In particular, there are no side-agreement
between the parties, whether oral or otherwise.

 

21.          Changes
and Supplements. Any changes and supplements to this Agreement must be in writing in order to be valid. This shall also apply
with regard to any changes to the requirement of writing in this Paragraph 21.

 

22.          
Successors. This Agreement shall bind any successors of the parties.

 

23.          Applicable
Law. This Agreement is governed by the laws of the Federal Republic of Germany. Any disputes under this Agreement or in connection
with its implementation shall, if possible, be resolved amicably by the parties. If an amicable resolution cannot be reached, the
forum for the dispute shall be determined by statutory law.

 

24.          Severability.
Should a provision of this Agreement violate statutory law or be or become otherwise void, the remainder of this Agreement shall
remain valid. The parties shall agree on a valid provision which implements the purpose of the affected provision as closely as
possible.

 

In
Witness Whereof, the Parties have executed this Agreement by their duly authorized officers as of the Effective Date.

 

	MIS-Robotics Gmbh	 	RG Mechatronics GmbH
	 	 	 
	By:	 	 	By:	 
	 	 	 	 	 
	Name:	 	 	Name:	 
	 	 	 	 	 
	Title:	 	 	Title:VIA EMAIL TO:	October , 2012

 

ernd Gombert

Am Technologiepark 12

D-82229 Seefeld

(Ammersee bei Munchen)

Germany

 

bernd.gombert@web.de

 

		Re:	Chief Scientist and Technical Officer
	 	 	Employment Agreement - AVRA
Surigical Robotics, Inc.

 

Dear Mr. Gombert:

 

AVRA Surgical Robotics,
Inc. (“AVRA” or the “Company”) agrees to employ you as its Chief Scientist and Technical Officer (“CSTO”).
This letter, when counter-signed by you, will constitute the terms of our agreement governing your employment (the “Agreement”).

 

The specific terms
of your employment with the Company are as follows:

 

		1.	Term: This Agreement shall commence on or about August 2, 2012 and shall continue thereafter
for a period of 5 years, unless earlier terminated as herein provided.

 

		2.	Compensation: Beginning on or about August 2, 2012, you will receive a base salary rate
of €300,000 gross per year. This salary will be subject to annual review and increases as the Company’s board of directors
deems appropriate in its sole and absolute discretion. The salary will be paid monthly. You are responsible to pay all taxes required
by law.

 

		3.	Benefits: During the term of your employment hereunder, the Company will pay for the following
expenses:

 

(a)   
Social Security, Health Insurance and Taxes: The Company will pay you a total of €15,000
per year, paid monthly at the end of each month, in full compensation to you for any Social Security assessments, health insurance
and any analogous charges assessed based on income. You agree to be responsible to pay the actual amounts due.

 

(b)  
Private Pension Fund: The Company will contribute at the end of each calendar year €48,000 gross into a private
pension fund for your benefit.

 

    	 

    	 

    
 

	Mr. Bernd Gombert	Page 2

 

(c)   
Company Car: The Company will reimburse you for leasing an Audi Q7 or equivalent, which includes the right to use
the car privately. All running costs (petrol, insurance, maintenance/repairs) will be paid by the Company. Taxes shall be paid
by you.

 

(d)  
Paid Vacation: The Company will pay you for four weeks’ vacation per year.

 

(e)   
Other Expenses: In accordance with any rules and policies established from time to time for its officers and employees,
AVRA will reimburse you for business expenses reasonably incurred in the performance of your duties. You are authorized to incur
reasonable business expenses for promoting the business of AVRA, including reasonable expenditures for travel, lodging, meals,
and client or business associate entertainment. Requests for reimbursement for such expenses must be accompanied by appropriate
documentation.

 

(f)   
Disability Insurance: The Company will provide, by insurance or otherwise, continued base salary for up to twelve
months in the event you are disabled because of serious illness or accident. To the extent the Company provides additional benefits
to all executives for life, accidental death, dismemberment and disability, by insurance, you will receive those benefits as well.

 

		(g)	Severance Benefits: In the event the Company terminates you as an executive during the initial
two years of your employment, you will be entitled to severance pay for six months at your base salary rate, plus accrued benefits,
including all vested stock options. Thereafter, severance will be paid for twelve months at the base salary rate, plus accrued
benefits.

 

		(h)	Long-Term Equity Compensation: Equity compensation for executives may be in the form of shares of stock, or options
to purchase shares of stock or both. You will be entitled to options or shares, or both, made under a long-term equity compensation
plan that the Company intends to adopt.

 

		4.	Confidentiality; Non-Solicitation: You acknowledge that AVRA possesses confidential information
that is peculiar to the businesses in which AVRA is or may be engaged. You hereby affirm that such confidential information is
the exclusive property of AVRA and that AVRA has proprietary interests in such Confidential Information. You will use confidential
information solely for the purpose of performing your duties on behalf of AVRA and for no other purpose, and you will not disclose
confidential information to any other person, except to AVRA’s officers as part of your duties as CSTO, or use it to the
detriment of AVRA. At the end of your employment, you agree to return to AVRA all confidential information in your possession.
If you terminate your employment with AVRA, you agree that for a two-year period thereafter, you will not own, manage or control
any business that competes with AVRA, its subsidiaries and affiliates. If AVRA terminates your employment, the non-compete period
will then be co-extensive with the number of months for which you are entitled to severance pay.

 

		5.	Termination: Your employment may be terminated by your resignation, discharge by Company
or death. When your employment ends, you will be entitled to unpaid accrued salary and benefits to the date of termination. No
salary or benefits will accrue after termination.

 

    	 

    	 

    
 

	Mr. Bernd Gombert	Page 3

 

		6.	Governing Law: This Agreement will be governed by and construed in accordance with the law
of the State of New York without giving effect to the rules of conflicts of law.

 

		7.	Successors; Binding Agreement: AVRA and you agree that any successor company may assume
and agree to perform this Agreement in the same manner that AVRA is required to perform if no succession had taken place, such
as the planned merger of AVRA into a public company.

 

		8.	Entire Agreement: This Agreement embodies the entire understanding and agreement between
the parties concerning the subject matter hereof. It may not be changed, except by a writing signed by both parties.

 

		9.	Severability: If any provision, or portion thereof, of this Agreement, or its application
to any party or circumstances, shall be invalid, illegal or unenforceable to any extent, the remainder of this Agreement, such
provision and their application shall not be affected thereby, but shall be interpreted without such unenforceable provision or
portion thereof so as to give effect, insofar as is possible, to the original intent of the parties, and shall otherwise be enforceable
to the fullest extent permitted by law.

 

[Remainder
of this Page Intentionally Left Blank]

   

    	 

    	 

    

 

	Mr. Bernd Gombert	Page 4

 

If this letter accurately
reflects your understanding of our employment agreement, please indicate your acceptance of the aforementioned terms by signing
your name in the space below and return one fully-executed copy of this letter to the Company within ten (10) business days.

 

We look forward to working with you.

 

	 	Very truly yours,
	 	 
	 	AVRA SURGICAL ROBOTICS, INC.
	 	 
	 	By: 	 
	 	 	Jared B. Stamell
 Vice President and General Counsel

 

AGREED TO AND ACCEPTED:

 

The undersigned hereby agrees to and accepts
the terms of the offer set forth above.

 

                                                                  

Bernd Gombert

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