Common use of Operations and Expenses Clause in Contracts

Operations and Expenses. 2.1 The detailed operations of Sinopharm under this Agreement are subject to the sole control and management of Sinopharm. Sinopharm shall be responsible for all of its own employees and expenses, including, without limitation, postage, cable expenses, shipping, insurance, financing, costs and taxes of complying with the exportation or importation of the Products. Sinopharm shall provide, at its own expense, such office space and facilities, hire and train such personnel, and maintain sufficient capital or credit as may be required to carry out its obligations under this Agreement. Sinopharm agrees that it shall incur no expense chargeable to Company, except as may be specifically authorized in advance and in writing by Company. 2.2 The Company will engage in a process aiming to gain regulatory approval for the ADI pump and its disposables in the Chinese market. Said process will be financed by the Company and the Company will retain ownership in the approval. 2.3 The parties agree to cooperate in jointly creating an agreed marketing, sales and operation plan to roll out the commercialization activities in the Chinese market. The plan will be based on the content and principles as set forth in Sinopharm’s attached Marketing Plan – Appendix 2.3. 2.2 The Company will engage in a process aiming to gain regulatory approval for the ADI pump and its disposables in the Chinese market Said process will be financed by the Company and the Company will retain ownership in the approval. 2.3 The parties agree to cooperate in jointly creating an agreed marketing, sales and operation plan to roll out the commercialization activities in the Chinese market. The plan will be based on the content and principles as set forth in Sinopharm’s attached Marketing Plan – Appendix 2.3. 2.4 The parties will cooperate in the execution of the plan, monitoring of the process and the periodical adaptations that will be required. 2.5 Sinopharm’s investments in executing the marketing plan reach in the first four years a total of at least 1,280,000 USD as detailed in Appendix 2.3, and will include the following items: 2.5.1 Set up cost nationwide network and initial clinical background work - ^^ USD (based on items 3, 4, & 5 in Appendix 2.3. 2.5.2 ^^ $ per year for trade shows marketing etc (based on items 1, 2, & 7 to Appendix 2.3 per 4 years period. Combined a total of ^^ USD. 2.5.3 ^^ designated employees dedicated to the diabetes business – at a cost of ^^ USD per year combined a total of ^^ USD.