Document:

Exhibit
10.20

 

CONFIDENTIAL
TREATMENT

 

CERTAIN
IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE COMPANY
TREATS AS PRIVATE OR CONFIDENTIAL. THE REDACTED TERMS HAVE BEEN MARKED WITH ONE ASTERISK [*]

 

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.

 

    	-2-

    	 

    

 

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.

 

    	-3-

    	 

    

 

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.

 

    	-4-

    	 

    

 

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:

 

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

 

    	-5-

    	 

    

 

(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.

 

    	-6-

    	 

    

 

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 caused by such failure. An Indemnifying Party will not settle or consent to any entry of judgment in connection
with 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 
	 	 	○	Product
    Description
	 	 	○	Reference
    Number (Customer PN)
	 	 	○	Polyzen
    Lot Number
	 	 	○	Manufacture
    Date
	 	 	○	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
	 	 	○	410016
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	○	410017
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	○	410010
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
    
	 	 	○	410011
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	○	410012
	 	 	 	■	*
	 	 	 	■	*
	 	 	○	410013	 
	 	 	 	■	*
	 	 	 	■	*
	 	 	○	410014
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	○	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 
	 	 	 	 	 	○	Red
    luer
	 	 	 	 	 	○	Filter
	 	 	 	 	●	Internal
    Sensor Line Blue
	 	 	 	 	 	○	Blue
    Luer
	 	 	 	 	 	○	Filter
	 	 	 	 	●	Irrigation
    line
	 	 	 	 	 	○	Clear
    Luer
	 	 	 	 	●	Pumping
    Line
	 	 	 	 	 	○	Cone
    x2
	 	 	 	 	 	○	Strain
    Relief x2
	 	 	 	 	 	○	Silicone
    tubes according to length x2
	 	 	 	 	●	Head
	 	 	 	 	 	○	*
	 	 	 	 	 	○	*
	 	 	 	 	 	○	*
	 	 	 	 	●	Complete
    Seal.
	 	 	 	 	●	No
    folds in seal area.
	 	 	 	 	●	Anchoring
    points are closed in trays.

 

Final
Release Testing:

 

	 	●	410015
    
	 	 	○	Sampling
    Plan:
	 	 	 	■	*	 	 
	 	 	 	■	*	 	 
	 	 	 	■	*	 	 
	 	 	○
	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
	 	 	○	Product
    Description
	 	 	○	Reference
    Number (Customer PN)
	 	 	○	Polyzen
    Lot Number
	 	 	○	Manufacture
    Date
	 	 	○	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
	 	 	○	410018
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*

Final
Release Testing:

 

	 	●	410018
	 	 	○	Sampling
    Plan:
	 	 	 	■	*
	 	 	 	■	*
	 	 	 	■	*
	 	 	○	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:
    C6, Mingzhuo Industrial Park, Guangming New District, Shenzhen, Guangdong, China 518107 
	 	 

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:
    8720 U.S. 70, Clayton, NC 27520 

 

	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:
547 TRM Cir, Corona, CA 92879

 

	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
10.41

 

CERTAIN
IDENTIFIED INFORMATION HAS BEEN EXCLUDED FROM THIS EXHIBIT BECAUSE IT IS BOTH (I) NOT MATERIAL AND (II) IS THE TYPE THAT THE COMPANY
TREATS AS PRIVATE OR CONFIDENTIAL. THE REDACTED TERMS HAVE BEEN MARKED WITH THREE ASTERISKS [***]

 

MASTER
SUPPLY AGREEMENT

 

This
MASTER SUPPLY AGREEMENT (this “Agreement”) is effective as of this April 1, 2021 (“Effective Date”)
by and between J. STERLING INDUSTRIES LLC, a limited liability corporation, with offices located at 6825 Beatrice Drive, Kalamazoo, MI,
49009 (“Sterling”) and MOTUS GI HOLDINGS, INC., a Delaware corporation whose address is 1301 East Broward Boulevard,
Fort Lauderdale, Florida 33301 (hereinafter referred to as “Motus”).

 

Recitals

 

WHEREAS,
Sterling is engaged in the business of supplying certain products for medical devices; and

 

WHEREAS,
Motus desires to retain Sterling to manufacture and supply for Motus the products designated on Exhibit A attached hereto
subject to the terms and conditions set forth herein; and

 

WHEREAS,
it is the intention of the Parties to establish this Agreement to govern the respective rights, duties and obligations of the Parties;

 

Agreement

 

NOW
THEREFORE, in consideration of the mutual promises and benefits made and contained herein, the receipt and sufficiency of which are hereby
acknowledged, the Parties hereby agree as follows:

 

1.       Definitions.

 

When
used herein with initial capitalization, whether in the singular or in the plural, the following terms shall have the following meanings:

 

“Acquired
Entity” shall mean any corporation or business entity which becomes a Motus Affiliate after the Effective Date of this Agreement.

 

“Affiliate”
shall mean (a) any corporation or business entity fifty percent (50%) or more of the voting stock/ownership interests of which is, and
continues to be, owned directly or indirectly by any Party hereto; (b) any corporation or business entity which directly or indirectly
owns fifty percent (50%) or more of the voting stock of any Party hereto; (c) any corporation or business entity under the direct or
indirect control of such corporation or business entity as described in (a) or (b); or (d) in the case of Motus, any corporation or business
entity that satisfies the criteria set forth in (a), (b) or (c) at any time during the Term of this Agreement.

 

    	 

    	 

    

 

“AH
Categories of Intellectual Property” means, with respect to a Party, the Present Intellectual Property of that Party, the Independently
Developed Intellectual Property of that Party, and the Project Intellectual Property.

 

“Applicable
Requirements” means all applicable domestic and foreign federal, state, and local laws, statutes, acts, ordinances, rules,
codes, standards, guidelines and regulations, applicable to Sterling and the Products provided under this Agreement. Without limiting
the generality of the foregoing, “Applicable Requirements” means all rules and regulations applicable to the labeling, re-labeling,
packaging, processing, assembly, record creation, record retention, record modification, record transmission (including by electronic
means), storage, handling, transport (including exportation and importation of Products within the United States, or to or from the United
States and any other country), and reporting of medical devices, and, as applicable, human cells, tissues or human cellular or tissue-
based products (HCT/Ps, in accordance with 21 CFR 1271) in effect at a particular time and promulgated by the United States Food and
Drug Administration (“FDA”) and any foreign agency or authority equivalent to the FDA, including without limitation
21 CFR 803 and 820 (the “Quality System Regulation”, “QS Regulation” or “QSR”),
21 CFR 11 (the “Electronic Records Regulation”), Quality Management System requirements of ISO 13485:2016, ISO 14001
and ISO 13485:2016 CAN/CSA (and any amendments thereto) and all other applicable legal and regulatory requirements, including, without
limitation all requirements of the Canadian Medical Device Regulation, the Therapeutic Goods Administration, Medsafe (New Zealand regulatory
authority), European Directives (including CE marking requirements) and Japan’s Pharmaceutical Affairs Law (PAL) and Ministerial
Ordinance #169.

 

“Contract
Year” shall mean each successive twelve (12) month period commencing on the Effective Date and on each anniversary thereof.

 

“EAU”
shall mean the estimated annual usage of a Product, component or material.

 

“Independently
Developed Intellectual Property” means, with respect to a Party, any and all Patents, inventions, copyrights, trademarks, trade
secrets, know-how, and any other proprietary or confidential information invented, conceived, developed and/or reduced to practice after
the Effective Date by such Party’s employee(s), consultant(s) or other agent(s), solely or jointly with a third party but without
involvement by the other Party, or acquired by such Party.

 

“Initial
Term” shall have the meaning set forth in Section 6.1.

 

“Materials
Declaration Requirements” means any requirements, obligations, standards, duties or responsibilities pursuant to any environmental,
product composition and/or materials declaration laws, directives, or regulations, including international laws and treaties regarding
such subject matter; and any regulations, interpretive guidance or enforcement policies related to any of the foregoing.

 

“Medical
Device” means any surgical endoscope designed, developed, manufactured, marketed or distributed by Motus that incorporates
some or all of the Product(s).

 

“New
Products” shall mean any Products that Sterling does not supply to Motus as of the Effective Date of this Agreement.

 

    	-2-

    	 

    

 

“Non-Conforming
Products/Services” shall have the meaning set forth in Section 3.1.

 

“Packaging”
shall mean bags, cases, cylinders, drums, pallets and other containers.

 

“Party”
or “Parties” shall mean in the singular, either Motus or Sterling as context may so dictate, or in the plural, both
Motus and Sterling.

 

“Patent(s)”
means United States patent application(s) and foreign counterpart(s) thereof, and all United States and foreign patent(s) issued, or
issuing therefrom, including any additions, continuations and continuations-in-part, divisions, reissues, renewals and extensions thereof.

 

“Present
Intellectual Property” means, with respect to a Party, any and all Patents, inventions, copyrights and trademarks and identified
as present intellectual property of that Party, as well as inventions, trade secrets, know-how and any other proprietary or confidential
information controlled by such Party as of the Effective Date, which such Party is free to license hereunder, which directly and substantially
relate to the Products or the design and development thereof.

 

“Pricing
Schedule” shall mean the list of Prices that Sterling may charge Motus for the supply of Products, and as more fully described
in the List of Products and Pricing Schedule attached hereto as Exhibit A.

 

“Motus’s
Intellectual Property” means the design of the Products, all information related thereto and all information provided by Motus
to Sterling in connection with or otherwise under this Agreement, regardless of medium, and all rights to patents, copyrights, trademarks,
trade secrets, know-how, designs, formulae, trade names, labels, trade dress, literature, programs, advertising material or other documents,
materials or information relating to the Products or the business operations of Motus or owned by Motus.

 

“Products”
shall mean the products supplied by Sterling during the Term of this Agreement and as more fully described in the List of Products and
Pricing Schedule attached hereto as Exhibit A.

 

“Purchase
Order” shall mean a document (in hard copy or electronic form) that Motus may, from time to time, issue to Sterling after the
Effective Date of this Agreement to specify the date of delivery and the amount of Products to be delivered to the Motus facility.

 

“Quality
Agreement” shall have the meaning set forth in Section 7.3.

 

“Services”
are Program Management, design engineering, prototyping, other non-recurring engineering charges, as well as any other services specified
in a SOW.

 

“Signature”
and “Electronic Signature” shall have the meaning set forth in Section 5.4. “Specifications” shall
mean the document(s) and terms attached hereto as Exhibit B.

 

“Shipment”
shall mean the time at which Products leave a Sterling facility.

 

“Term
of this Agreement” shall have the meaning set forth in Section 6.1.

 

    	-3-

    	 

    

 

 

2.
Supply, Delivery and Inventory.

 

2.1
General.

 

2.1.1
Products. During the Term of this Agreement, Motus grants to Sterling the right to manufacture the Products described on
Exhibit A. Sterling shall make available to Motus those Products that are described in the List of Products and
Pricing Schedule attached hereto as Exhibit A and shall supply those Products at such time specified by Motus and consistent
with Section 2.3.1.

 

2.2
Purchase Orders and Invoices. Motus or its designee shall notify Sterling of its requirements for quantities of Products from
time to time by submitting Purchase Orders to Sterling. Any and all Purchase Orders submitted by Motus or its designee for Products,
and any and all invoices submitted by Sterling to Motus, shall be subject to the terms and conditions of this Agreement. NO ADDITIONAL
OR DIFFERENT TERMS OFFERED BY MOTUS IN A PURCHASE ORDER, BY STERLING IN AN INVOICE, OR OTHERWISE, SHALL BE OR BECOME PART OF THIS OR
ANY OTHER AGREEMENT BETWEEN MOTUS AND STERLING, AND ANY SUCH TERMS ARE HEREBY REJECTED, UNLESS SAID ADDITIONAL OR DIFFERENT TERMS ARE
AGREED TO IN A WRITTEN AGREEMENT SIGNED BY MOTUS AND STERLING. IF THE TERMS OF THIS AGREEMENT CONFLICT WITH ANY RELATED DOCUMENTS INCLUDING
A PURCHASE ORDER OR AN INVOICE, THE TERMS AND CONDITIONS OF THIS AGREEMENT CONTROL, UNLESS OTHERWISE AGREED TO IN WRITING BY THE PARTIES.

 

2.3
Delivery, Title and Risk of Loss.

 

2.3.1
Delivery. Unless otherwise specifically provided for in a Purchase Order, delivery shall occur Ex-Works Sterling’s
facility located in Kalamazoo, MI (FCA, Incoterms 2020) and in accordance with the Specifications in Exhibit B. Sterling
agrees to provide a numbered packing slip for Products delivered to Motus or its designee. At a minimum, Sterling’s packing slip
will contain the following information: (a) Purchase Order number, (b) part number, (c) description of the Product(s) shipped, and (d)
the quantity of Produces) shipped. Delivery of the Products is not complete until all of the Products comprising an order have been actually
received, inspected, and accepted by Motus or its designee in accordance with Section 3 of this Agreement. Additional terms of
acceptance, if any, are described in Exhibit B.

 

2.3.2
Title. Title shall pass concurrent with delivery as set forth in Section 2.3.1.

 

2.4
Packaging and Shipment.

 

2.4.1
General. Products shall be packed at no additional cost to Motus in accordance with the Purchase Order, the Specifications,
Motus’s instructions, and good commercial practices. All articles comprising each shipment hereunder, shall, as of the date of
such shipment comply with all applicable laws and the Specifications. Motus reserves the right to select the method of shipment. Unless
otherwise agreed to in writing by the Parties, the Products shall be shipped to Motus or its designee within the applicable Production
Lead Time Days specified on Exhibit A, as measured from the date of receipt by Sterling of the Purchase Order from Motus,.

 

    	-4-

    	 

    

 

2.4.2
Back Orders and Proof of Delivery. Sterling shall indicate any back-ordered items on packing slip and invoices. Signed
proof of delivery does not constitute or imply that the contents of the boxes used for delivery contain all items ordered by Motus. Signed
receipt acknowledges acceptance of number of specified boxes only and not the contents. Any subsequent order placed by Motus as a result
of items missing from a delivered shipment must be first credited then re-billed.

 

2.5
Forecasting. Exhibit A sets forth Motus’s initial forecast (EAU) for its supply requirements for Products.
Motus or its designee will provide Sterling with an updated [***] month EAU, as soon as Motus reasonably believes that the then-current
EAU is not accurate. Such EAU shall be used for planning purposes only and shall not represent a binding obligation on behalf of Motus.
Exhibit A may be updated from time to time by mutual agreement. Sterling will review supply requirements and maintain stocking
levels as appropriate to the production lead time. Any inventory levels beyond three (3) months will be approved by Motus. Sterling will
review the supply requirements on a monthly basis. Sterling will ship to meet Motus Product needs in accordance with any Purchase Order
Release form provided to Sterling by Motus or its designee. Such stock will be rotated by Sterling on a first-in, first-out basis. Motus
and Sterling may review and adjust inventory commitment levels as necessary but at a minimum on a quarterly basis.

 

2.6
Customer Support. Sterling agrees to provide a customer service representative (“CSR”) for daily contact
and coordination of needs with Motus or its designee, at Sterling’s sole cost and expense. Such CSRs shall be responsible for placing
orders, sourcing supplies, and processing returns and related account credits. Sterling shall, at its sole cost and expense, supply personnel
to provide technical information support for the Products it represents.

 

2.7
Maintenance of Inventory

 

2.7.1
Sterling shall monitor and maintain inventory of Products (more specifically described in Exhibit A) at Sterling’s
location to ensure continued Products availability and uninterrupted service to Motus. Upon request by Motus, Sterling shall provide
an accurate report of off-site maintained inventory.

 

2.7.2
Inventory obligations. In the event of obsolescence of Product or expiration, or termination of this Agreement for any
reason other than breach of this Agreement by Sterling, Motus will be responsible for purchasing Sterling’s Product inventory in
stock with Sterling but not beyond the agreed upon inventory levels as noted in section 2.5. Motus’s responsibility to purchase
Product inventory in accordance with the foregoing shall include Motus’s obligation to purchase stock of obsolete Product as a
result of, among other things, discontinuations, product design changes, and lack of demand whereby Motus has failed to issue orders
for Products for a period of [***] consecutive months; provided, however, that in all instances Motus’s obligations shall not exceed
the Maximum Inventory Commitment. The foregoing obligations of Motus shall not apply to Product inventory ordered or purchased by Sterling
following receipt of Motus’s notice of its intent to obsolete a Product or terminate or allow this Agreement to expire.

 

    	-5-

    	 

    

 

2.8
Design Services

 

2.8.1
Services. During the term of this Agreement, Sterling shall provide the Services identified in one or more Statements of
Work signed by both Parties (each, a “SOW”), pursuant to the fee schedule attached hereto as Exhibit D.
A SOW will detail the cost of Services to be provided and authorized out- of-pocket expenses. Each SOW will be automatically incorporated
into this Agreement upon execution by authorized representatives of the Parties. The Parties may from time to time amend a SOW in writing,
signed by authorized representatives of each party. A material change in a SOW may be subject to a corresponding change in the cost of
the related Services, as agreed to by the Parties in writing. Sterling will periodically consult with a designated representative of
Motus at mutually acceptable, prearranged times to keep Motus fully informed of the progress of each SOW.

 

2.8.2
Out-Of-Pocket Expenses. All out-of-pocket expenses, such as materials, travel, etc. incurred/procured by Sterling relating
to the Services will be billed at cost plus a [***] service fee to Motus. Sterling will exercise, in its sole discretion, reasonable
judgment with all expenses and will notify Motus in writing prior to incurring any cumulative expenses exceeding $[***]. Motus is responsible
for notifying Sterling in writing if an additional SOW is required to ensure payment of associated out-of- pocket expenses.

 

3.
Acceptance and Rejection of Products and Services.

 

3.1
Acceptance and Rejection Procedure.

 

3.1.1
Acceptance. Motus or its designee shall have thirty (30) days from delivery of the Products or Services to either: (a)
accept the Products/Services; or (b) notify Sterling that it has delivered Non- Conforming Products/Services. Products or Services are
“Non-Conforming” when the particular Products/Services do not meet the requirements set forth in the Specifications,
this Agreement, an applicable SOW, any applicable Purchase Order or applicable warranties. In the event that Motus does not notify Sterling
of non-conformity or non-compliance within such thirty (30) day period, then the Products/Services shall be deemed accepted.

 

3.1.2
Rejection and Replacement. In the event that Motus or its designee rejects the Products, Sterling shall, unless otherwise
agreed to by the Parties, replace Non-Conforming Products at no cost to Motus.

 

4.
Pricing and Changes.

 

4.1
Pricing. In full satisfaction for all Products provided by Sterling hereunder, Motus agrees to compensate Sterling according to
the Pricing Schedule as set forth in Exhibit A. Services shall be billed pursuant to the prices as set out in Exhibit
D unless otherwise indicated in a specific SOW. All prices are in United States Dollars.

 

4.2
Price Changes.

 

4.2.1
Prices. Subject to the provisions of Section 4.2.2 below, Sterling shall hold its prices on Products as set forth
in the Pricing Schedule attached as Exhibit A. for the duration of the Initial Term of this Agreement.

 

4.2.2
Cost Variation. Notwithstanding Section 4.2.1. in the event of a cost increase or decrease in the either the raw
materials and/or the purchased components used in the manufacture of the Products by an amount greater or less than [***], as measured
from the cost at the Effective Date, then the affected Party will notify the other Party in writing (with supporting documentation) to
request a cost variation in the price of the affected Products. The Parties will meet within 15 days to discuss cost variation and implementation
date of the price increase/decrease, which will not be unreasonably delayed or denied.

 

    	-6-

    	 

    

 

4.2.3
New Products. Any New Products to be covered by this Agreement, and the pricing thereof agreed to by the Parties through
the normal quote process, shall be documented in writing as an amendment to Exhibit A to this Agreement.

 

4.3
Taxes, Tariffs and Duties. Motus shall pay all sales, or use taxes, duties and tariffs due on the transactions hereunder or provide
Sterling customary proof that the transactions are exempt from such taxes, duties and Tariffs. Invoices shall separately identify any
taxes, duties and tariffs that are the responsibility of Motus hereunder (including value added taxes as exclusively net extra) and shall
include either Sterling’s sales tax or use tax permit number. Sterling shall pay any other taxes and charges, including without
limitation, assessments or fines arising from Sterling’s performance of the transactions under the Agreement. Sterling is solely
responsible for taxes based upon Sterling’s net income and penalties or fees imposed due to failure to file or pay collected sales
or use taxes, duties and tariffs and Sterling shall not be entitled to additional compensation in connection therewith. In all instances
where Motus purchases Products using an Incoterm requiring importation by Motus, Motus shall have the sole and exclusive right to claim
and apply for all duty drawbacks and Sterling shall reasonably assist Motus in making any such duty drawback claims.

 

4.4
Invoices. Sterling shall invoice Motus with Sterling’s shipment of Products or performance of Services with a complete,
correct and audit worthy invoice within thirty (30) days of shipment. The invoice shall include, at a minimum, the following information:

 

4.4.1
Invoices for Products shall contain: (a) purchase order number, (b) part number(s), (c) lot number(s), if applicable, (d) description
of the Produces) shipped, (e) quantity of the Product(s) shipped, (t) unit and extended price applicable, (g) date that the Product(s)
shipped, (h) Sterling’s packing slip number, (i) any applicable taxes chargeable under Section 4.3: and (j) any extraordinary
charges that have been approved by Motus. In addition, Sterling’s invoices for Products shall conform to the requirements specified
in Exhibit B. Motus shall pay such invoices net within thirty (30) days of receipt of the invoice.

 

4.4.2
Invoices for Services shall be arranged by SOW number, and contain: staff name, staff type, date, hours and rate. Invoices that include
out-of-pocket expense entries will detail: expense name, expense type, date and amount. Sterling will provide Motus with scanned copies
of original receipts. Motus shall pay all such invoices net within forty-five (45) days of receipt of the invoice. Payment hereunder
shall represent full and complete compensation for all obligations assumed by Sterling under this Agreement and for all inventions, improvements
and copyright or patent rights assigned to Motus as more fully set forth in Section 9. Sterling may delay any shipment or place
any shipments on COD when any invoice is past due.

 

    	-7-

    	 

    

 

5.
Electronic Commerce.

 

5.1
Availability. Motus shall communicate with Sterling to develop appropriate electronic commerce services as may be appropriate.

 

5.2
Proper Receipt. Transmissions shall not be deemed to have been properly received, and no transmission shall give rise to any obligation,
until accessible, during regular business hours of the receiving Party, to the receiving Party at such Party’s receipt device.

 

5.3
Garbled Transmissions. If any properly initiated transmission is received in an unintelligible or garbled form, the receiving
Party shall promptly notify the originating Party in a reasonable manner. In the absence of such notice, the originating Party’s
records of the contents of such transmission shall control.

 

5.4
Signatures. Each Party shall adopt and notify the other Party of its electronic identification consisting of symbol(s) or code(s)
which will be affixed to or contained in each transmission by such Party and which shall act as its signature (“Signature”).
Each Party agrees that any Signature of such Party affixed to or contained in any transmission shall be sufficient to verify that such
Party originated such document. Neither Party shall disclose to any unauthorized person the Signatures of the other Party, except as
required by law, court or administrative body.

 

5.4.1
Electronic Signatures. With regard to any Electronic Signatures, Sterling shall comply with all applicable provisions of
21 CFR Part 11 Subparts A and C including, without limitation, ensuring the uniqueness of Electronic Signatures; basing Electronic Signatures
upon biometrics or use of at least two distinct identification components, such as an identification code and password, that are periodically
checked or revised; following loss management procedures to electronically de authorize lost, missing, stolen, or otherwise potentially
compromised devices that bear or generate identification code or password information; initial and periodic testing of such devices;
and using transaction safeguards to detect, report, and prevent unauthorized use of passwords or identification codes.

 

5.5
Verification. Upon proper receipt of any transmission (except a confirmation), the receiving Party shall promptly and properly
transmit a confirmation in return. A confirmation shall constitute conclusive evidence a transmission has been properly received, however,
such confirmation will not be construed as acceptance of the accuracy of the data contained in the transmission.

 

5.6
System Operations. Each Party at its own expense, shall provide and maintain the equipment, software services and testing necessary
to effectively and reliably initiate and receive transmissions.

 

5.7
Security Procedures. Each Party shall properly use such security procedures that are reasonably sufficient to ensure that all
transmissions are authorized and to protect its business records and data from improper access.

 

5.8
Binding Commercial Transactions. Any commercial transaction properly transmitted pursuant to this Agreement shall be considered
to be a “writing” or “document in writing”; and any such transmission when containing, or to which there is affixed,
a Signature shall be deemed for all purposes (a) to have been “signed” and (b) to constitute an “original” when
printed from electronic files or records established and maintained in the normal course of business.

 

    	-8-

    	 

    

 

6.
Term and Termination.

 

6.1
Term. Unless earlier terminated in accordance with the provisions of this Agreement, the initial term of this Agreement shall
commence on the Effective Date and shall end five (5) years after the Effective Date (“Initial Term”); provided however,
that this Agreement shall remain in effect with respect to any Purchase Order then in effect at the time of such termination until performance
thereunder is completed to the satisfaction of Motus, unless or until such Purchase Order is itself terminated as herein provided. This
Agreement may be extended upon the mutual written agreement of the Parties for additional terms of one (1) year and for a total of five
(5) one-year extensions. The Parties agree to confer at least one hundred eighty (180) days prior to the expiration of the initial or
any renewal term regarding their intention to execute an extension. The Initial Term of this Agreement and any extensions thereof are
referred to as the “Term” in this Agreement. All references in this Agreement to “Term of this Agreement”
shall include both the Initial Term and any extensions thereof.

 

6.2
Termination.

 

6.2.1
Termination for Breach. Either Party may terminate this Agreement upon written notice to the other Party in the event the
other Party materially breaches this Agreement and fails to cure the breach within thirty (30) days after receipt of written notice thereof.
Material breaches shall include, but are not limited to: (a) the filing of bankruptcy, receivership or similar proceeding due to insolvency
(voluntarily or involuntarily); (b) dissolution, liquidation, or other discontinuation of all or a significant part of the other Party’s
business operations or the threat to cease to carry on all or a significant part of it business operations; (c) material adverse change
in the other Party’s financial condition or failure to meet any of its debt obligations when due; (d) any unapproved assignment
of or repeated non-performance of Sterling’s obligations under this Agreement; (e) any breach of a Party’s representations
and warranties. Any termination effected pursuant to this Section 6.2.1 shall be deemed effective as of the date specified in
the notice of termination.

 

6.2.2
Consequences of Termination. Upon termination of this Agreement, Sterling shall immediately cease all work, cease to represent
itself as providing Products to Motus and shall deliver to Motus: (a) a report describing Purchase Orders/SOWs outstanding as of the
date of termination; (b) all Motus Confidential Information in its possession; and (c) all work product, including, but not limited to,
programs, reports, data, flow diagrams, materials and all work in process, in whatever state of development they may exist on the date
of termination. Upon delivery and receipt of the above, Motus shall pay Sterling, within 45 days of termination, for the Products and
Services delivered to and accepted by Motus including inventory obligations as set forth in Section 2.7.2 as of the date of termination,
at the applicable prices under the terms of this Agreement.

 

6.3
Survival. The provisions of Sections 6, 7, 8, 9, 10, 11, 12, 15, 17, 18, 19, 20 and 21 hereof shall survive the expiration
or termination of this Agreement and shall be binding to the respective successors, assigns, subsidiaries, or Affiliates of the Parties.

 

    	-9-

    	 

    

 

7.
Representations and Warranties.

 

7.1
Compliance with Applicable Requirements. Sterling represents and warrants that all materials and equipment used by Sterling shall
meet the Motus Specifications and shall be used as directed by the manufacturer thereof. Sterling further represents and warrants that
Products manufactured and supplied by it to Motus (a) shall conform to the Specifications, (b) shall not be adulterated or misbranded
within the meaning of the Food, Drug and Cosmetic Act, as amended from time to time (the “Act”), and (c) shall be
manufactured, inspected and supplied in accordance with the Applicable Requirements. Sterling will cause its suppliers to undertake such
quality control and inspection procedures as set forth above. Sterling further agrees that it will be responsible for the foregoing warranties
with respect to sales made by Motus to its customers and that it will replace at no charge any Product that is found to be defective
within the warranty period indicated in Section 7.4. Sterling further agrees to provide and to cause its suppliers to provide
Motus with any manufacturing data that Motus may at any time be required to submit to the FDA, Health Canada, Therapeutic Goods Administration,
Medsafe, all European Competent Authorities or any other applicable regulatory body.

 

7.2
Compliance with Materials Declaration Requirements. Sterling represents and warrants that Sterling and any Sterling facility,
equipment, employees, sub-suppliers, and agents shall comply with Materials Declaration Requirements as applicable at all times during
its performance under this Agreement.

 

7.3
Quality Assurance Requirements. Contemporaneously with the execution of this Agreement, Sterling and Motus are entering into an
agreement with respect to quality assurance in the provision of the Products the terms of which are incorporated herein and made a part
hereof by reference (the “Quality Agreement”) [The parties will exchange and review template quality agreements].
Sterling represents and warrants that Sterling and any Sterling facility, equipment, and employees shall at all times comply with and
provide all Products set forth in this Agreement in accordance with the Quality Agreement.

 

7.4
Limited Warranty.

 

7.4.1
Products. Sterling warrants to Motus that all Products shall: (i) be of merchantable quality, (ii) be free from latent
and patent defects in material and workmanship; and (iii) comply with the requirements of this Agreement, including all drawings, and
Specifications. The foregoing warranties does not cover and specifically excludes claims resulting from normal wear and tear, misuse,
abuse, and uses by a party other than Sterling or its permitted sub-contractors exceeding Specifications. Sterling further warrants the
Products and all rights thereto (other than the Intellectual Property rights of Motus) are owned by Sterling prior to shipment and that
the Products are free and clear of all liens, security interest, and encumbrances or other adverse claims against title. The warranty
in (ii) shall be limited in time to twelve (12) months after Product acceptance by Motus.

 

7.4.2
Services. Sterling shall perform the Services in accordance with the generally accepted practices of similar professionals
performing similar services at the time the Services are performed for Motus.

 

    	-10-

    	 

    

 

7.5
Limitation of Liability, Disclaimers of Warranties. WITH THE EXCEPTION OF CLAIMS ARISING UNDER GROSS NEGLIGENCE AND WILLFUL MISCONDUCT
AND THE CONFIDENTIALITY AND INDEMNITY OBLIGATIONS SET FORTH IN THIS AGREEMENT, BOTH PARTIES HEREBY AGREE THAT REGARDLESS OF THE FORM
OF ANY CLAIM, EITHER PARTY’S LIABILITY FOR ANY DAMAGES TO THE OTHER PARTY SHALL NOT EXCEED $1,000,000 (ONE MILLION DOLLARS). EXCEPT
FOR THE WARRANTIES EXPRESSLY AND SPECIFICALLY DESCRIBED IN THIS AGREEMENT, THERE ARE NO WARRANTIES EXPRESSED OR IMPLIED AND ALL SUCH
OTHER AND ADDITIONAL WARRANTIES ARE EXPRESSLY AND SPECIFICALLY DISCLAIMED. WITH THE EXCEPTION OF CLAIMS ARISING UNDER GROSS NEGLIGENCE
AND WILLFUL MISCONDUCT AND THE CONFIDENTIALITY AND INDEMNITY OBLIGATIONS SET FORTH IN THIS AGREEMENT, IN NO EVENT UNDER ANY THEORY OF
LAW, INCLUDING BUT NOT LIMITED TO, BREACH OF WARRANTY, NEGLIGENCE, OR OTHER TORT, SHALL EITHER PARTY BE RESPONSIBLE FOR ANY INDIRECT,
SPECIAL, INCIDENTAL, OR CONSEQUENTIAL DAMAGES OR LOST PROFITS, EVEN IF THE OTHER PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

7.6
No Infringement or Misappropriation. Sterling further represents and warrants that, to the extent not reliant upon a Motus design,
the Products do not and will not violate, infringe, or misappropriate any Intellectual Property Right or proprietary right of any third
party anywhere in the world, nor has any claim of such infringement been threatened or asserted.

 

7.7
Proper Authority. Sterling and Motus each represent to the other that the execution, delivery and performance of this Agreement
by such Party: (a) has been duly authorized by all necessary corporate action; (b) does not conflict with, or result in a material breach
of, the articles of incorporation/organization or bylaws/operating agreement of such Party, and any material agreement by which such
Party is bound, or any law, regulation, rule, judgment or decree of any governmental instrumentality or court having jurisdiction over
such Party; and (c) this Agreement has been duly executed by such Party and constitutes a valid and legally binding obligation of such
Party enforceable in accordance with its terms.

 

7.8
Communications with FDA and other Notified Bodies. Sterling represents and warrants that, notwithstanding anything to the contrary
in this Agreement, Sterling shall not initiate nor participate in any communications with the United States Food & Drug Administration
(“FDA”) or and other Notified Bodies concerning the subject matter hereof without the express prior written consent
of Motus. Notwithstanding the foregoing, Sterling may communicate with the FDA, or other Notified Body, without Motus’s prior written
consent in the event such communication is expressly required by applicable federal law, rule or regulation. When legally permissible
and practicable, Sterling shall use reasonable efforts to consult with Motus prior to any such communications.

 

7.9
Warranties Cumulative. The warranties provided herein are cumulative. During the Term of this Agreement, if Sterling’s representations
in this Section 7 become untrue for any reason, then Sterling shall promptly notify Motus of the circumstances that have made
such representation(s) untrue.

 

    	-11-

    	 

    

 

8.
Confidential Information. The Parties acknowledge and agree that they are bound by that certain Non-Disclosure Agreement, dated
as of October 5, 2020, by and between Sterling and Motus (“2-Way NDA”), - and each shall comply in all respects with the
terms and conditions of the NDA during the Term of this Agreement (and thereafter as set forth in the terms thereof).

 

8.1
Ownership: No Rights Granted. Unless otherwise set forth in this Agreement, Confidential Information and all embodiments thereof
are the sole property of the Disclosing Party and no license or conveyance of any right under discovery, invention, patent, copyright,
trade secret or other proprietary right that is owned or controlled by the Disclosing Party is granted to the Receiving Party under this
Agreement, other than the limited right to use the Disclosing Party’s Confidential Information to perform this Agreement.

 

9.
Intellectual Property: Tooling and Equipment.

 

9.1
Licenses.

 

9.1.1
Sterling hereby grants to Motus a fully-paid, royalty-free, exclusive worldwide license, without the right to sublicense (except to Motus
Affiliates and as expressly provided herein), under All Categories of Intellectual Property of Sterling solely for the purposes of making,
having made, distributing and selling the Medical Device as contemplated in this Agreement. Motus shall be responsible for compliance
by its sublicensees with the terms of this Agreement. For the avoidance of doubt, the license granted to Motus herein is exclusive only
to the extent necessary for Motus to perform its obligations under this Agreement with respect to the Medical Device.

 

9.1.2
Motus hereby grants to Sterling a fully-paid, royalty-free worldwide license, without the right to sublicense (except to Sterling Affiliates
and as expressly provided herein), under All Categories of Intellectual Property of Motus solely for the purpose of making and having
made the Products for incorporation into the Medical Device as contemplated in this Agreement. Sterling shall be responsible for compliance
by its sublicensees with the terms of this Agreement. For the avoidance of doubt, the license granted to Sterling herein is solely to
the extent necessary for Sterling to perform its obligations under this Agreement with respect to the Products.

 

9.1.3
Sterling acknowledges and agrees that (i) the Products are and shall be the sole and exclusive property of Motus, (ii) hereby irrevocably
transfers and assigns to Motus any and all of its right, title and interest, inclusive of intellectual property and proprietary rights,
if any, in and to the Products, as well as any improvements or modifications to the Products as well as any All Categories of Intellectual
Property of Motus, (iii) Motus shall have the sole right to determine the treatment of the Products, including the right to keep any
of the same as a trade secret, to file and execute patent applications on it, to use and disclose it without prior patent application,
to file registrations for copyright or trademark on it in its own name, or to follow any other procedure that Motus deems appropriate,
and (iv) Sterling shall take all reasonable steps to acknowledge such ownership and assign any interest it may have in the Products and
All Categories of Intellectual Property of Motus in which it has any interest.

 

9.1.4
Except as otherwise expressly provided in this Agreement, neither Party shall have any license or other right to use the Present Intellectual
Property or Independently Developed Intellectual Property of the other Party.

 

    	-12-

    	 

    

 

9.1.5
The licenses granted above in this Section 9 shall continue for so long as this Agreement remains in full force and effect.

 

9.2
Patent Issues.

 

9.2.1
Motus and Sterling each shall have the right, in its sole discretion and at its own expense, to control the preparation, prosecution,
and maintenance of Patents covering its Present Intellectual Property and Independently Developed Intellectual Property and to select
all patent counsel or other professionals to advise, represent or act for it in all matters relating to such Patents. Each Party shall
inform the other Party at reasonable regular intervals, or at such other Party’s reasonable request, about the status of any such
Patents which are licensed to the other Party hereunder.

 

9.2.2
Motus shall be responsible for the preparation, prosecution and maintenance of Patents covering Intellectual Property arising from any
joint activities of the Parties in connection with the development and manufacture of the Products (“Project Intellectual Property”)
and to select all patent counsel or other professionals to advise, represent or act for the Parties in all matters relating to such Patents.
Sterling shall cooperate and provide reasonable assistance to Motus to facilitate Patenting or Patent maintenance, and all patent expenses
shall be borne by Motus (“Patent Expenses”). For all Patent applications on which the Parties cooperate in such fashion,
Motus shall provide Sterling with copies of all documents and correspondence associated with the preparation and prosecution of such
Patents at least fifteen (15) days prior to filing to enable Sterling to provide comments thereon.

 

9.2.3
If Motus or Sterling is threatened with suit or sued by a third party for intellectual property infringement because of activities in
connection with the Project Intellectual Property, or in connection with the development, processing and/or distribution of Products
or the Medical Device, the Party which has been threatened with suit or sued shall promptly notify the other Party in writing of such
event. Motus and Sterling agree to take whatever action Motus deems appropriate in connection with such claim or suit.

 

9.2.4
If Motus or Sterling is threatened or sued by a third party for intellectual property infringement because of activities in connection
with the Present Intellectual Property or Independently Developed Intellectual Property of any Party, then the Party which has been threatened
with suit or sued shall promptly notify the other Party in writing of such event. The Party whose intellectual property is involved shall
be responsible for defending such suit including, inter alia, (a) controlling the defense of such suit and/or (b) maintaining responsibility
for the cost of such defense, including attorneys’ fees.

 

9.2.5
In the event that Motus or Sterling learns of any third party infringement or misappropriation or suspected infringement or misappropriation
(hereinafter “infringement”) of any Intellectual Property of any Party, such Party, as the case may be, shall promptly notify
the other Party of such infringement.

 

9.2.6
Upon the distribution of any Medical Device, the Parties agree to mark any such product in accordance with the patent Laws of the United
States and/or any foreign country where such marking is required or desirable.

 

    	-13-

    	 

    

 

9.3
Tooling and Equipment. Equipment, design, tools, jigs, dies, fixtures, templates, patterns, drawings, and other information and
things (herein collectively, the “Tools”) paid for or furnished by Motus shall be Motus’s property and Sterling
shall not encumber or dispose of them in any way. Sterling shall maintain such Tools in good working condition. The Tools shall be used
exclusively for Sterling’s performance of its obligations hereunder. To the extent any equipment owned by Motus is placed at Sterling’s
facility to be used in connection with Sterling’s performance of its obligations hereunder, in addition to the foregoing terms
and conditions, such equipment and Sterling’s use thereof shall also be subject to the terms and conditions set forth in Exhibit
C.

 

9.4
Disclosure. Sterling, warranting that it has the right to do so, agrees to disclose promptly, and to cause its employees, subcontractors,
agents, or other representatives performing under this Agreement to disclose promptly, to Motus any enhancements, additions, or improvements,
to Motus’s Intellectual Property discovered, made, and/or conceived by Sterling and/or by any such employees, subcontractors, agents
or other representatives, either alone or jointly with others, both: (a) during the Term of this Agreement or within twelve (12) months
thereafter and (b) in the course of or as a result of Sterling’s performance under this Agreement or as a result of the information
revealed directly or indirectly by Motus or its Affiliates.

 

9.5
Copyrights. Where applicable, Sterling agrees that all original works of authorship prepared by or for Sterling in the performance
for Motus under this Agreement shall be works made for hire, and Motus shall own such works and all copyrights therein. For any original
works of authorship prepared by or for Sterling in the performance of this Agreement that, under the copyright laws of the United States,
may not be considered works made for hire. Sterling agrees to do everything reasonably necessary to enable Motus or its nominee to protect
its rights in such works.

 

9.6
No Conflicts. Sterling represents that it is not now under any obligation to assign inventions, which obligation would conflict
with those contained in this Section 9 and Sterling agrees not to enter into any such conflicting agreements or arrangements during
the Term of this Agreement.

 

10.
Indemnification & Insurance.

 

10.1
Indemnity.

 

10.1.1
Indemnification by Sterling. Sterling shall defend, indemnify and hold harmless Motus and its Affiliates and other subsidiaries,
and its and their shareholders, officers, directors, employees, agents, successors, and assigns from and against any and all liabilities,
claims, suits, actions, losses, costs, reasonable attorneys’ fees and expenses, judgments or damages (“Claims”),
resulting or arising (directly or indirectly) from Sterling, its Affiliates or other subsidiaries, or its or their shareholders, officers,
directors, employees, agents, successors, assigns, representatives, contractors, subcontractors or invitees performance (or failure to
perform) hereunder, including: (a) infringing, misappropriating or violating any patent, copyright, trademark, trade secret or any other
intellectual property or proprietary right; (b) acts, omissions, negligence, misconduct, or dishonesty in connection with the performance
hereunder or any defect in Products; (c) breach of a representation, warranty and/or covenant, or failure to perform its obligations
hereunder; (d) violating any federal or state law, regulation, statute or ordinance including but not limited to the transportation,
handling, disposal or processing of regulated materials; (e) failure to comply with the confidentiality obligations set forth herein;
(f) any loss or damage to persons (including death) or property, to the extent caused by any act or omission of Sterling or, where applicable,
by its employees, agents, representatives, subcontractors or invitees; (g) a claim of any lien, security interest or other encumbrance
made by a third party, (h) recalls associated with Products and required under the Quality Agreement to the extent they relate to a design,
material, manufacturing, sterilization or packaging defect in a Product and not a Product-design requirement or Specification of Motus
or (i) any Products lost by libel, condemnation or recall arising from or related to actions and proceedings brought by a government
agency. Sterling’s liability under this Section 10.1.1 shall be reduced to the extent that Sterling demonstrates, by a preponderance
of the evidence, that any portion of such Claims were caused by the negligence or culpability or willful misconduct of Motus or by the
failure of Motus to perform its duties under this Agreement.

 

    	-14-

    	 

    

 

10.1.2
Indemnification by Motus. Motus shall defend, indemnify and hold harmless Sterling and its Affiliates and other subsidiaries,
and its and their shareholders, officers, directors, employees, agents, successors, and assigns from and against any and all Claims,
resulting from Motus, and/or its Affiliates, and other subsidiaries, and its and their shareholders, officers, directors, employees,
agents, successors, assigns, representatives, contractors, subcontractors or invitees performance (or failure to perform) hereunder,
including: (a) Motus’s required Product design or Specifications infringing, misappropriating or violating any patent, copyright,
trademark, trade secret or any other intellectual property or proprietary right; (b) acts, omissions, negligence, misconduct, or dishonesty
in connection with the performance hereunder; (c) breach of a representation, warranty and/or covenant, or failure to perform its obligations
hereunder; (d) violating any federal or state law, regulation, statute or ordinance; (e) failure to comply with the confidentiality obligations
set forth herein; (f) any loss or damage to persons (including death) or property, to the extent caused by any act or omission of Motus
or, where applicable, by its employees, agents, representatives, subcontractors or invitees. Motus’s liability under this Section
10.1.2 shall be reduced to the extent that Motus demonstrates, by a preponderance of the evidence, that any portion of such Claims were
caused by the negligence or culpability or willful misconduct of Sterling or by the failure of Sterling to perform its duties under this
Agreement.

 

10.2
Indemnification Process. With respect to any third-party claims, the indemnified Party shall give the indemnifying Party prompt
written notice of any third-party claim and cooperate with the indemnifying Party at the indemnifying Party’s expense. The indemnifying
Party shall have the right to assume the defense (at its own expense) of any such claim through counsel of its own choosing by so notifying
the indemnified Party within thirty (30) calendar days of the first receipt of such notice. The indemnified Party shall have the right
to participate in the defense thereof and to employ counsel, at its own expense, separate from the counsel employed by the indemnifying
Party. The indemnifying Party shall not, without the prior written consent of the indemnified Party not to be unreasonably withheld,
agree to the settlement, compromise or discharge of such third-patty claim.

 

10.3
Intellectual Property. Notwithstanding Motus’s indemnification rights under Section 10.1.1, in the event any Products
provided under this Agreement are held or likely to be held to constitute an infringement, misappropriation, or violation, Sterling shall,
at its expense, first use reasonable and prompt efforts either (a) to procure for Motus the right to continue to use such Products; or
(b) to modify the Products so that they are non-infringing and of at least equivalent performance and functionality; or (c) upon adequate
showing to Motus that both of the foregoing options are not commercially feasible, provide functionally equivalent replacement Products,
or offer to reimburse Motus’s cost of doing so.

 

    	-15-

    	 

    

 

10.4
Insurance. The parties shall cooperate in good faith to each maintain a primary and noncontributing products liability (bodily
injury and property damage) insurance with a combined single limit for bodily injury and property damage per occurrence in an equal amount,
with the following coverage amounts: $[***] per incident. Such insurance shall have provision for at least thirty (30) days prior written
notice to the other party in the event of cancellation or material reduction of coverage. Each party shall provide evidence of such coverage
to the other, and subsequently, shall have the right to request and receive satisfactory evidence of continued insurance coverage from
the other. In the event of nonpayment of premiums or other lapse of coverage, each party shall have the right to maintain such insurance
coverage on the lapsed party’s behalf and at the lapsed party’s expense.

 

11.
Independent Contractor.

 

11.1
Relationship of the Parties. Sterling shall perform this Agreement as an independent contractor, and Sterling is not an employee,
agent, partner or representative of Motus. Sterling shall conduct its business under its own name as an independent contractor, and is
hereby expressly prohibited from holding itself out as an employee, agent, partner or representative of Motus. It is agreed that any
person employed by Sterling to perform hereunder shall not be deemed to be an employee of Motus, and Sterling and Sterling’s employees,
suppliers, subcontractors, agents or representatives shall not be, or represent themselves to be, officers, employees, agents or representatives
of Motus and shall not bind, or attempt to bind, Motus to any agreement, liability or obligation of any nature.

 

12.
Assignment. This Agreement shall be binding upon and shall inure to the benefit of each Party, its successors and assigns. No
Party shall have power to assign this Agreement without the prior written consent of the other, which shall not be unreasonably withheld
or delayed, except that any Party may assign this Agreement to any person or entity who acquires all or substantially all of its assets,
or who acquires a majority of its voting interests, or with whom it is merged, provided that the surviving entity must agree to be bound
to the terms and conditions of this Agreement.

 

13.
Permits. Sterling confirms that prior to its performance under this Agreement, Sterling holds and maintains, or will hold and
maintain, all registrations, licenses, certificates, permits, approvals and authorizations and shall obtain all inspections required
by any government agency throughout the Term of this Agreement to the extent applicable to the manufacture, inspection, transportation
or supply of the Products hereunder. Sterling agrees to obtain and maintain any registrations or licenses that may be required for its
performance in the future. Sterling shall assist Motus in obtaining additional permits and licenses that may be required by law to be
issued in Motus’s name.

 

    	-16-

    	 

    

 

14.
Force Majeure.

 

14.1
Force Majeure Events. In the event that either Party is unable to perform any of its obligations under the Agreement, or to enjoy
any of its benefits because of an unforeseen and unanticipated event such as, fire, flood, natural disaster, riot, civil commotion, terrorism,
sub-contractor/supplier bankruptcy, action or decrees of governmental bodies (a “Force Majeure Event”), the Party
who has been so affected shall immediately give written notice to the other Party and shall do everything possible to resume performance.
Upon receipt of such notice, all obligations under the Agreement shall be immediately suspended. If the period of nonperformance exceeds
ninety (90) days from the receipt of notice of the Force Majeure Event, the Party whose ability to perform has not been so affected may
by giving written notice terminate the Agreement. Delays in delivery due to Force Majeure Events shall automatically extend the delivery
date for a period equal to the duration of such Force Majeure Events. Any acceptance or warranty period affected by a Force Majeure Event
shall likewise be extended for a period equal to the duration of such Force Majeure Event. As applied to this Section 14 and to
determine whether an event is wholly beyond control of a Party, strikes, slowdowns or other labor related delays are not Force Majeure
Events. A period of Force Majeure or other event causing inability to perform shall be deemed to commence on the date that the event
of Force Majeure or other such event first occurs.

 

14.2
Exceptions. Notwithstanding the provisions set forth in Section 14.1, a Force Majeure Event shall not include any governmental
action of an enforcement nature that arises from or relates to Sterling’s failure to comply with any federal, national, state,
provincial, or local law, statute, regulation or ordinance applicable to Sterling’s performance hereunder or Sterling’s manufacture,
storage or handling of materials associated with such performance.

 

15.
Governing Law; Dispute Resolution: Waiver of Jury. The validity and interpretation of this Agreement and the legal relations of
the Parties hereto shall be governed by the laws of the State of Delaware of the United States, without regard to its rules governing
conflicts of law. In the event of a dispute between the parties relative to this Agreement or any transactions concluded hereunder, the
parties shall first use good faith efforts to amicably arrive at a settlement acceptable to both parties. If, however, a settlement cannot
be reached within a reasonable time after such dispute arises (not to exceed 60 days from receipt of written notice of the dispute),
the parties agree that any legal action based upon such a dispute or any claims arising out of this Agreement shall be exclusively brought
before and decided by the courts located within the State of Delaware. This Agreement shall not be governed by the United Nations Convention
for the Sale of International Goods. THE PARTIES HEREBY WAIVE ANY RIGHT TO A TRIAL BY JURY WITH RESPECT TO ANY DISPUTE ARISING FROM OR
RELATING TO THIS AGREEMENT.

 

16.
Country of Origin. Sterling shall maintain and provide copies to Motus of a listing accurately specifying the country of origin
of each Product to be supplied under this Agreement. The initial country of origin for the Products is set forth in Exhibit A,
and pursuant to Exhibit B, each invoice shall set forth the country of origin for Products included in each shipment. Sterling
shall provide not less than sixty (60) days’ advance written notice to Motus of any sourcing decision resulting in a change of
the country of origin of any item to be supplied pursuant to this Agreement. Sterling shall immediately update the required listing and
provide a copy of a current and complete listing to Motus whenever any item to be supplied pursuant to this Agreement has a change in
country of origin or a new item is added to the scope of this Agreement. For purposes of this Section 16 and Exhibits A
and B, the term “country of origin” shall be interpreted consistent with the “substantial transformation test”
(i.e., transforming an article into a new and different article of commerce, with a name, character, or use distinct from the original
article).

 

    	-17-

    	 

    

 

17.
Records and Inspections.

 

17.1
Records. Sterling shall keep complete and systematic written records of all Products and Services purchased by Motus. Such records
shall include records specific to Motus transactions (i.e. Purchase orders, SOWs, invoices, shipping documents) of a financial nature
(including records for compliance with federal, state and local law) and such other documentation pertaining to Sterling’s performance
under this Agreement, and Sterling shall preserve all such records until seven (7) years from creation of the record. During the Term
of this Agreement and for seven (7) years thereafter, Motus shall have the right to inspect copy and audit such records during Sterling’s
regular working hours. Sterling shall fully cooperate in any such inspection or audit of its records.

 

17.2
Control & Security Compliance. Upon fifteen (15) business days’ notice to Sterling and during normal business hours,
Motus shall be permitted to audit, inspect and/or verify relevant Sterling’s operations and other areas of Services to confirm
that (a) Sterling is maintaining controls and security measures specific to Sterling’s fulfillment of its obligations to Motus
pursuant to this Agreement (b) billings to Motus are correct, (c) reports relating to Sterling’s performance are complete and accurate,
(d) records relating to placed equipment are accurate, complete, valid and appropriately maintained, and (e) proof of shipping are accurate,
complete and valid (“Inspection(s)”).

 

17.3
Nature of Inspection. Motus shall clearly state the nature of the Inspection being requested. Such Inspections shall be limited
to information that relates directly to Sterling’s fulfillment of its obligations pursuant to this Agreement. Motus may conduct
Inspections itself or with the assistance of a third party organization acceptable to Sterling, provided that the third party organization
executes confidentiality agreement reasonably acceptable to Sterling, at Motus expense, as appropriate. Inspections may be made as frequently
as Motus reasonably deems appropriate. All Inspections will be performed in a manner and frequency intended to minimize disruption to
the Parties’ respective businesses.

 

17.4
Access. Sterling shall provide to Motus and its respective auditors (including internal audit staff), inspectors, regulators,
consultants and other representatives (collectively “Inspectors”) as Motus may from time to time designate in writing,
reasonable access: (a) Sterling’s facilities (and subcontractor facilities to extent applicable) where the Product manufacturing
and/or operations are being performed; (b) Sterling’s personnel and subcontractors performing any operations hereunder; (c) documents,
data and records related to the performance of Sterling’s obligations hereunder; and (d) operational or security audit reports
and findings including remediation plans in the possession of Sterling relating to any of its operations related to the Products. Sterling
shall provide such access to Inspectors upon reasonable written notice (not less than 72 hours in advance) by Motus during regular business
hours, provided that all such persons adhere to Sterling’s security and safety policies and have executed a confidentiality agreement
reasonably acceptable to Sterling. Upon request by Motus and with Sterling’s prior consent, not to be unreasonably withheld, delayed
or conditioned, Sterling will assist and cooperate with Motus Inspectors in connection with Inspection functions, including the review
and/or timely remediation of audit issues. Such cooperation shall extend to regulatory compliance pertaining to the Sarbanes Oxley Act
of 2002.

 

    	-18-

    	 

    

 

19.
Notices.

 

All
notices hereunder shall be delivered (i) personally, (ii) by registered or certified mail, postage prepaid or (iii) by overnight courier
service to the following addresses of the respective Parties:

 

	If
    to Sterling:	J
    Sterling Industries LLC 6825 Beatrice Drive Kalamazoo, MI, 49009
	 	ATTN:
    David Van Slingerland
	 	 
	If
    to Motus:	Motus
    GI Holdings, Inc.
	 	1301
    East Broward Boulevard
	 	Fort
    Lauderdale, Florida 33301
	 	ATTN:
    Mark Pomeranz, COO

 

Notices
shall be effective upon receipt. A Party may change its address listed above by notice to the other Party.

 

20.
Miscellaneous.

 

20.1
Remedies. No remedy herein conferred is intended to be exclusive of any other remedy, and each and every such remedy shall be
cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing at law or in equity or by statute
or otherwise.

 

20.2
Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of
which together shall be considered one and the same agreement, it being understood that all Parties need not sign the same counterpart.
The exchange of copies of this Agreement or Amendments hereto and of signature pages by facsimile transmission or by email transmission
in portable document format, or similar format, shall constitute effective execution and delivery of such instrument(s) as to the Parties
and may be used in lieu of the original Agreement or Amendment for all purposes. Signatures of the Parties transmitted by facsimile or
by email transmission in portable document format, or similar format, shall be deemed to be their original signatures for all purposes.

 

20.3
Waiver: Modification of Agreement. Waiver of any breach under this Agreement shall not constitute waiver of any other breach of
the same or any other provision. Acceptance of any items or payment therefor shall not waive any breach. No waiver or modification of
any of the terms of this Agreement shall be valid unless in writing and signed by authorized representatives of both Parties.

 

20.4
Headings. The headings in this Agreement are for convenience of reference only and in no way define or limit any of the provisions
hereof or otherwise affect their construction or effect.

 

20.5
Severability. In case any one or more of the provisions of this Agreement should 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.

 

    	-19-

    	 

    

 

20.6
Exhibits. Exhibits described below and attached hereto are incorporated into this Agreement wherever referenced.

 

	Exhibit
    A	List
    of Products and Pricing Schedule
	 	 
	Exhibit
    B	Specifications
	 	 
	Exhibit
    C	Equipment
    Placement Terms
	 	 
	Exhibit
    D	Fees
    for Services

 

21. Entire
Agreement. This Agreement, including any documents referred to herein and any exhibits attached hereto, are incorporated herein
by reference and constitute the entire agreement between the Parties, and there are no other representations, warranties, covenants
or obligations except as set forth in this Agreement and the signing by both Parties shall cause this Agreement to be valid on the
Effective Date. This Agreement supersedes all prior and contemporaneous agreements, understandings, negotiations and discussions,
written or oral, of the Parties, relating to any transaction contemplated by this Agreement (including any confidentiality
agreement(s) entered into by the Parties or their Affiliates for the purposes of effectuating this Agreement). No course of dealing
or usage of trade shall be used to modify the terms hereof. This Agreement is the product of negotiations between the Parties, and
shall be construed as if jointly prepared and drafted by them, and no provision hereof shall be construed for or against any Party
due to its actual role in the preparation or drafting hereof by reason of ambiguity in language and/or rules of construction against
the drafting Party or similar doctrine. The documents referred to herein and attached hereto shall be read together with this
Agreement to determine the Parties’ intent. In the event of a conflict between or among such documents, the documents shall
govern in this order: (1) this Agreement; (2) the Specifications; and (3) a Purchase Order/SOW, unless specifically otherwise stated
in document signed after the date of this Agreement by both Parties.

 

Signature
Page Follows

 

    	-20-

    	 

    

 

IN
WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed by their duly authorized corporate officers or representatives
as of the date first above written.

 

	MOTUS GI HOLDINGS, INC.	 	J.
    STERLING INDUSTRIES LLC.
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/
    Mark Pomeranz	 	By:	/s/
    David Van Slingerland
	Name:	Mark Pomeranz	 	Name:	David
    Van Slingerland
	Title:	Chief Operating Officer	 	Title:	Chief
    Executive Officer

 

 

    	-21-

    	 

    

 

EXHIBIT
A

 

LIST
OF PRODUCTS AND PRICING SCHEDULE

 

[***]

 

    	-22-

    	 

    

 

EXHIBIT
B

 

SPECIFICATIONS

 

1.
Product Specifications. All Specification references include and incorporate the most current revision level from which Product
is to be manufactured. All applicable Specifications references will be incorporated on each approved Motus Purchase Order for Product.

 

[***]

 

2.
Delivery Acceptance Specifications.

 

As
stated in Sections 2.3and 3.1 of this Agreement.

 

3.
Packaging and Shipment Specifications. The Parties will agree whether the packaging and shipment specifications described below
is appropriate on a Product by Product basis. In the event that the Parties agree to initiate international shipments, the following
shall apply:

 

	 	●	Advise
    Motus in advance of any shipments destined for Motus by sending an e-mail notification to [***]
	 	●	Marking-
    ensure that goods sold to Motus for import into the United States are marked legibly and permanently with their country of origin,
    as directed by Motus.
	 	●	Packing
    Materials - ensure that any wood packing material complies with the “International Standards for Phytosanitary Measures: Guidelines
    for Regulating Wood Packaging Material in International Trade” (ISPM No. 15) and is appropriately stamped.
	 	●	Special
    Programs- do not indicate the use of any special trade program (e.g., NAFTA, GSP, 9801U.S. Goods Returned, etc.) without prior instructions
    from Motus to do so.

 

4.
Warranty.

 

Sterling’s
warranty as described in the Agreement shall be for the period of thirty-six (36) months after Product acceptance at Motus.

 

5.
Invoices. For circumstances of foreign trade that require a customs declaration. Sterling shall submit commercial invoices that
shall conform to the requirements specified below. The commercial invoice shall act as the customs declaration form.

 

5.1
Every invoice must include and conform to the requirements on the attached Commercial Invoice Requirements Checklist attached to this
Exhibit B as Schedule 1.

 

5.2
Also include the following on every invoice:

 

	 	(i)	Purchase
    Order number or another unique transaction identifier if no Purchase Order number is involved.
	 	(ii)	All
    values relating to the goods, including unit price of goods, total price of goods, packing costs and freight charges.
	 	(iii)	Accurate
    county of origin information. Note: Country of origin is (1) the county of growth, manufacture, or production; or (2) for goods subject
    to multi-country production, the last country in which a substantial transformation occurs. For goods exempted from NAFTA countries,
    the NAFTA rules (19 CFR Part 102) must be consulted. If any trade agreement shall goes into effect between the United States and
    Canada during the term of this Agreement, the parties shall comply with that agreement, its rules and regulations.
	 	(iv)	Name
    of the person within your company who is responsible for the accuracy of the invoice.

 

5.3
Do not include tariff classification numbers on invoices unless they are numbers provided by or agreed to by Motus.

 

5.4
Invoices issued for Customs purposes should be identical in every way (including currency) to invoices sent to Motus for payment. Any
exceptions require prior approval from Motus.

 

    	-23-

    	 

    

 

Schedule
1

COMMERCIAL INVOICE

REQUIREMENTS CHECKLIST

 

By
statute (19 USC §1481) and by regulation (19 CFR §141.81-92), commercial invoices must provide the following information as
described below:

 

Invoice
Elements

 

	[
    ]	Date
	 	 
	[
    ]	Port
    of Entry
	 	 
	[
    ]	Names
    of buyer and seller of product. If applicable, name and address of foreign party invoicing the article.
	 	 
	[
    ]	Name
    of employee of exporter with knowledge of transaction.
	 	 
	[
    ]	Detailed
    description of product, including SKU, internal part number and product name. The description must be sufficient to determine the
    tariff classification of the goods. If available, also include any mark, number, symbol or trade name used by seller to the trade.
	 	 
	[
    ]	Quantity
    (weight and measures)
	 	 
	[
    ]	Purchase
    price
	 	 
	[
    ]	Currency
	 	 
	[
    ]	Terms
    of Sale
	 	 
	[
    ]	All
    charges upon the product, itemized by name and amount. This should include freight, insurance, commission, packing costs, and inland
    freight to port of export, if applicable.
	 	 
	[
    ]	Any
    discount, rebate, drawback or bounty.
	 	 
	[
    ]	Any
    goods or services furnished for the production of the product.
	 	 
	[
    ]	Country
    of origin.
	 	 
	[
    ]	Number
    of packages.

 

Format
Requirements

 

	[
    ]	Individual
    invoices must represent a single shipment.
	 	 
	[
    ]	Original
    invoices need not be submitted. Photocopies are acceptable substitutes.
	 	 
	[
    ]	Invoices
    must either be written in English or have an accurate translation attached to them.
	 	 
	[
    ]	Required
    information must be written on invoice itself, or as an attachment.
	 	 
	[
    ]	Where
    an entry includes multiple invoices, each invoice must be numbered sequentially, starting with the number “1”.
	 	 
	[
    ]	Pages
    within an invoice must also be numbered sequentially.
	 	 
	[
    ]	Any
    notation made by the broker on the commercial invoice must either be in blue or black ink, as other colors are reserved for the use
    of Customs personnel.

 

    	-24-

    	 

    

 

EXHIBIT
C

EQUIPMENT PLACEMENT TERMS

 

1.
Use and Location of Equipment.

 

(a)
Motus hereby agrees to place, or has already placed, the Equipment on temporary loan to Sterling at Sterling’s manufacturing facility
located at [***] (“Facility”) for the limited use by Sterling or within the terms of this Agreement. The Patties acknowledge
and agree that the Equipment may only be used by Sterling in the manufacture of the Products for Motus pursuant to the Supply Agreement.

 

(b)
Sterling shall not move or transfer the Equipment from its Facility, or make any alterations, additions or improvements to the Equipment
not approved or recommended by Motus. Sterling shall keep the Equipment in a safe and secure location and use the Equipment in accordance
with the Equipment operating manuals and instructions provided by Motus and attached to Schedule 1. Motus shall have the right,
at reasonable times and after reasonable notice to Sterling, to enter the Facility to inspect or otherwise protect Motus’s interest
in the Equipment and its rights hereunder.

 

(c)
During the term of this Agreement, Sterling shall be responsible for making all repairs and replacements required to be made in order
to maintain the Equipment in good condition, ordinary wear and tear excepted, and perform calibration and/or preventative maintenance
on all Equipment per manufacturer (or Motus) suggested maintenance schedules, including as set forth in Schedule 2 attached hereto.
Copies of documentation of calibration and/or preventative maintenance procedures shall be forwarded to Motus within five (5) business
days of Motus’s request. Sterling shall be responsible for any loss of or damage to the Equipment resulting from its use, handling
or storage of the Equipment while such Equipment is in the Facility or otherwise in Sterling’s control. Upon expiration or termination
of the Supply Agreement or at Motus’s request, the Equipment shall be removed from the Facility and returned to Motus at Motus’s
expense. Notwithstanding the foregoing provision, Motus may, at any time and for any reason, pick up or claim the Equipment from Sterling.

 

(d)
The Patties agree that additional items of equipment purchased by Motus and placed at Sterling from time to time for use in the manufacture
of the Products may be added to the “Equipment” as that term is defined herein by supplements to Schedule 1. Such
additional Equipment shall be subject to the terms and conditions of this Agreement unless otherwise specifically agreed to by the Parties
in writing.

 

2.
Ownership of Equipment.

 

During
the term of this Agreement (and until Motus’s retrieval of the Equipment), Sterling agrees as follows: (a) Sterling shall not sell,
transfer, pledge, hypothecate or allow any lien or other encumbrance of the Equipment, and shall defend Motus’s right, title, and
interest in and to the Equipment as to any lien, interest or encumbrance created by or through Sterling; (b) Sterling will allow the
Equipment to be used only by competent employees or other parties in a careful manner solely in the manner for which such Equipment was
intended to be used; (c) Sterling shall have possession of the Equipment only and title to such Equipment shall be and remain in Motus’s
name at all times; (d) if and to the extent Contractor is deemed to have any rights or interest in the Equipment, Sterling hereby grants
to Motus, its successors and assigns, a security interest in all of Sterling’s rights and interest in the Equipment, now existing
or hereafter arising, all additions to the Equipment and all proceeds of the foregoing. Such security interest shall secure all of Motus’s
rights and interest in the Equipment, Motus’s rights under this Agreement, and Sterling’s performance of its obligations
under this Agreement. Sterling authorizes Motus to file financing statements disclosing Motus’s interest in the Equipment. Sterling
shall provide Motus with at least forty-five (45) days’ prior written notice of any change to its principal place of business or
state of organization or incorporation; (e) Sterling will promptly pay all taxes, assessments and other governmental charges levied or
assessed upon the use or operation of the Equipment by Sterling; and (t) Sterling shall, at all times, comply with all applicable laws,
ordinances, regulations and standards applicable to the Equipment or the installation, use or operation thereof. Unless Motus has already
done so, Sterling will firmly affix to the Equipment, in a conspicuous place, decals or other markings showing Motus as owner of the
Equipment. Sterling shall replace any such markings that become defaced.

 

3.
Disclaimer of Warranties.

 

The
Equipment is being provided for the use of Sterling as an accommodation to Sterling. Motus makes no representations or warranties as
to the condition or operation of the Equipment.

 

4.
Survival.

 

The
operation of this Agreement shall continue for so long as the Equipment has not been returned to Motus hereunder.

 

    	-25-

    	 

    

 

SCHEDULE
1

 

EQUIPMENT
LIST

 

[***]

 

Note:
Also attach copies of equipment manuals of operation, maintenance, etc.

 

    	-26-

    	 

    

 

SCHEDULE
2

 

CALIBRATION
AND PREVENTATIVE MAINTENANCE SCHEDULE

 

[***]

 

    	-27-

    	 

    

 

EXHIBIT
D

 

Fees
for Services

 

Unless
otherwise stated in an applicable SOW, the following Fee Schedule shall apply to the Services provided by Sterling to Motus under this
Agreement:

 

	 	Program
    management	[***]
	 	Mechanical
    /Quality Engineering	[***]
	 	Technical
    Writing	[***]
	 	Expenses,
    disbursements, and travel cost	[***]

 

    	-28-

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