Exhibit 10.4

 

Confidential Treatment Requested

 

SUPPLY AGREEMENT

 

This SUPPLY AGREEMENT (the “Agreement”), effective the 14th day of March, 2016
(the “Effective Date”) is between Greatbatch Ltd., located at 10000 Wehrle
Drive, Clarence, New York 14031, (“Greatbatch”) and QiG Group, LLC, a Delaware
limited liability company, located at 5700 Granite Parkway, Suite 960, Plano,
Texas, 75024 (“QiG Group”). Greatbatch and QiG Group are referred to
collectively as the “Parties” and individually as a “Party”.

 

RECITALS:

 

WHEREAS, QiG Group desires to purchase the Relevant Project Components (as
defined below) exclusively from Greatbatch;

 

WHEREAS, Greatbatch is in the business of supplying Relevant Project Components;
and

 

WHEREAS, the Parties desire to terminate, replace and supersede the Umbrella
Agreement between Greatbatch and QiG Group, dated August 28, 2009 and hereby
establish the new terms and conditions that shall apply to QiG Group’s exclusive
purchase of Relevant Project Components from Greatbatch.

 

NOW, THEREFORE, in consideration of the mutual covenants contained herein,
Greatbatch and QiG Group hereby agree as follows:

 

I.

DEFINITIONS

 

As used in this Agreement, the following capitalized terms, whether used in the
singular or plural, shall have the meanings set forth in this Article I:

 

A.

“Acknowledged Order” has the meaning set forth in Section VIII.A.

 

B.

“Affiliate” means, with respect to any Person, any other Person which controls,
is controlled by or is under common control with such Person. A Person shall be
deemed to control another Person if such Person possesses, directly or
indirectly, the power to direct or cause the direction of the management and
policies of such Person, whether through the ownership of voting securities, by
contract or otherwise. Without limiting the generality of the foregoing, a
Person shall be deemed to control another Person if any of the following
conditions is met: (a) in the case of corporate entities, direct or indirect
ownership of at least fifty percent (50%) of the stock or shares having the
right to vote for the election of directors, and (b) in the case of
non-corporate entities, direct or indirect ownership of at least fifty percent
(50%) of the equity interest with the power to direct the management and
policies of such non-corporate entities. For purposes of this Agreement, in no
event shall QiG Group or any of its Affiliates be deemed Affiliates of
Greatbatch (or any of its Affiliates) nor shall Greatbatch or any of its
Affiliates be deemed Affiliates of QiG Group (or any of its Affiliates).

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
 

--------------------------------------------------------------------------------

 

 

C.

“Agreement” has the meaning as described in the Preamble.

 

D.

“Change of Control” means (i) a consolidation or merger of a Party or other
change of control transaction (other than a merger to reincorporate a party in a
different jurisdiction) in which the shareholders or members, as applicable, of
a Party immediately prior to such transaction do not continue to hold a greater
than 50% interest in the successor or survivor entity immediately following such
transaction, (ii) a transaction or series of transactions that results in the
transfer of more than 50% of the voting power of a Party to an unaffiliated
Person or (iii) the sale, lease, transfer or other disposition of all or
substantially all of the assets of a Party (which shall include any effective
transfer of such assets regardless of the structure of any such transaction as a
license or otherwise).

 

E.

“Confidential Information” of a Party means any and all information of a
confidential or proprietary nature disclosed by a Party under this License
Agreement, whether in oral, written, graphic or electronic format, which
includes, but is not limited to, Trade Secrets, discoveries, ideas, concepts,
know-how, techniques, designs, specifications, drawings, diagrams, data,
business activities and operations, customer lists, reports, studies and other
technical and business information.

 

F.

“Consigned Products” has the meaning set forth in Section VIII.A.

 

G.

“Consignment Inventory” has the meaning set forth in Section VIII.B.

 

H.

“Consignment Orders” has the meaning set forth in Section VIII.A.

 

I.

“Exercise Period” has the meaning set forth in Section II.C.

 

J.

“Effective Date” has the meaning as described in the Preamble.

 

K

“Facility Approval Notice” has the meaning set forth in Section IV.B.

 

L.

“FDA” means the U.S. Food & Drug Administration or any successor entity thereto.

 

M.

“Field of Use” means spinal cord stimulation.

 

N.

“Force Majeure” has the meaning set forth in Section V.N.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 2 -

--------------------------------------------------------------------------------

 

 

O.

“Greatbatch” has the meaning as described in the Preamble.

 

P.

“Greatbatch Indemnitees” has the meaning set forth in Section X.C.

 

Q.

“Improvements” has the meaning set forth in Section XII.B.

 

R.

“Initial Term” has the meaning set forth in Section II.B.

 

S.

“Intellectual Property” means all rights held by a Party in its technology,
products and business information, all or some of which may constitute
Confidential Information, and including but not limited to: patent rights,
copyrights, trademark rights, goodwill, inventions, improvements, discoveries,
designs, modifications, data, business information, financial information,
clinical information and data, regulatory information, trade secret rights, mask
work, know how rights and other intellectual property and proprietary rights.

 

T.

“Joint IP” has the meaning set forth in Section XII.B.

 

U.

“Legal Requirements” means any federal, state, local, provincial, foreign,
international, multinational or other statute, law, treaty, rule, regulation,
guideline, administrative order, directives, ordinance, constitution or
principle of common law (or any interpretation thereof by a governmental
entity).

 

V.

“Licensed IP” has the meaning set forth in the Restricted License Agreement and
the Unrestricted License Agreement.

 

W.

“Manufacturing Request” has the meaning set forth in Section II.C.

 

Y.

“Person” means an individual, a partnership, a corporation, an association, a
joint stock company, a trust, a joint venture, an unincorporated organization,
or a governmental entity (or any department, agency, or political subdivision
thereof).

 

Z.

“Product” means QiG Group’s Algovita spinal cord stimulation system and its
related parts and components that are based on, use or incorporate the Licensed
IP (the “Algovita System”) and such other products, parts and components,
including replacement parts and components, that may be incorporated within,
used in conjunction with or sold as part of the Algovita System as may be
mutually agreed upon by the parties from time to time.

 

AA.

“QiG Group” has the meaning as described in the Preamble. For purposes of this
Agreement, unless the context requires otherwise, any reference herein to QiG
Group shall mean QiG Group, LLC and each of its Affiliates

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 3 -

--------------------------------------------------------------------------------

 

 

BB.

“QiG Group Indemnitees” has the meaning set forth in Section X.D.

 

CC.

“Relevant Project Components” means the parts and components for the Product set
forth in Appendix A, which may be amended by the Parties from time-to-time in
accordance with this Agreement to incorporate additional Relevant Project
Components.

 

DD.

“Renewal Term” has the meaning set forth in Section II.B.

 

EE.

“Restricted License Agreement” means that certain Restricted License Agreement,
dated March 14, 2016, by and between Greatbatch and QiG Group whereby QiG Group
has licensed certain of its intellectual property to Greatbatch.

 

FF.

“Restricted Period” has the meaning set forth in Section XI.B(iv).

 

GG.

“Resultant Patents” means any rights under United States and foreign patents and
patent applications, including, but not limited to, divisions, continuations,
continuations-in-part, reissues, and reexaminations thereof that arise from any
Joint IP (as defined below).

 

HH.

“ROFR Notice” has the meaning set forth in Section II.C.

 

II.

“ROFR Period” has the meaning set forth in Section II.C.

 

JJ.

“Safety Stock” has the meaning set forth in Section VII.

 

KK.

“Specifications” has the meaning set forth in Section IV.A.

 

LL.

“Term” has the meaning set forth in Section II.B.

 

MM.

“Third Party Supply Agreement” has the meaning set forth in Section II.C.

 

NN.

“Trade Secrets” means trade secrets as they are defined in the Uniform Trade
Secrets Act, as amended (UTSA).

 

OO.

“Unrestricted License Agreement” means that certain Unrestricted License
Agreement, dated March 14, 2016, by and between Greatbatch and QiG Group whereby
QiG Group has licensed certain of its intellectual property to Greatbatch.

 

PP.

“Transfer Date” has the meaning set forth in Section VIII.D.

 

QQ.

“Validation Documentation” has the meaning set forth in Section IV.B.

 

RR.

“Warranty Period” has the meaning set forth in Section X.A(i).

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 4 -

--------------------------------------------------------------------------------

 

 

SS.

“WIP” has the meaning set forth in Section III.B.

 

II.

SUPPLY AND CONTRACT PERIOD:

 

A.            Sale and Purchase Obligations. Subject to all of the terms and
conditions of this Agreement:

 

 

(i)

Greatbatch agrees that during the Term, it shall have the exclusive right to
manufacture and sell to QiG Group all Relevant Project Components (as described
in or added to Appendix A) that may be ordered by QiG Group in accordance with
the terms of this Agreement; and

 

 

(ii)

QiG Group agrees to purchase exclusively from Greatbatch during the Term its
requirements for Relevant Project Components to be used by QiG Group in the
Products.

 

During the Term, if QiG Group desires to have an item manufactured that replaces
or is intended to replace a Relevant Project Component and such item is based
on, or that incorporates, Licensed IP and such item falls within the Field of
Use, and if Greatbatch elects to be the manufacturer of such item, then such
item shall be included as a “Relevant Project Component” under this Agreement
and Appendix A will be amended to include such item.

 

Subject to the immediately preceding paragraph, during the Term, if QiG Group
desires to have an item manufactured that is based on, or that incorporates,
Licensed IP and such item falls within the Field of Use, and if Greatbatch
elects to be the manufacturer of such item, then QiG Group and Greatbatch each
agree to negotiate exclusively, reasonably and in good faith with each other for
up to [***] days regarding the terms of a manufacturing and supply agreement
including, but not limited to, pricing, acceptable margins for each party and
any other unique manufacturing or quality requirements related to such item. In
the event that the parties are unable to agree on terms within [***] days, QiG
Group shall be free to negotiate a manufacturing and supply agreement with any
other third party suppliers for such item. QiG Group agrees that prior to
executing any such third party manufacturing and supply agreement, it will
notify Greatbatch of the key terms of such manufacturing and supply agreement
and will, for a period of at least [***] days after Greatbatch’s receipt of such
terms, give Greatbatch the opportunity to enter into a manufacturing and supply
agreement with QiG Group for such item on terms substantially consistent with
such third party manufacturing and supply agreement.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 5 -

--------------------------------------------------------------------------------

 

 

During the Term, if QiG Group desires to have an item manufactured that is not
based on or does not incorporate any Licensed IP but QiG Group intends that such
item will be used within the Field of Use, then QiG Group will be permitted to
negotiate a manufacturing and supply agreement with any third party with respect
to such item. QiG Group agrees that prior to executing any such third party
manufacturing and supply agreement, it will notify Greatbatch of the key terms
of such manufacturing and supply agreement and will, for a period of at least
[***] days after Greatbatch’s receipt of such terms, give Greatbatch the
opportunity to enter into a manufacturing and supply agreement with QiG Group on
terms substantially consistent with such third party manufacturing and supply
agreement. Further, if at the time QiG Group is initially seeking to have such
item manufactured, (a) Greatbatch is unable to manufacture the item so that the
item and its manufacture are at least equivalent in terms of technology,
quality, ramp-up times, lead times and capacity to manufacture in accordance
with this Agreement, (b) Greatbatch is unable to provide at least equivalent in
terms of price to manufacture as an offering made by a third party, or (c) the
Parties otherwise agree in writing, QiG Group will be free to enter into or
negotiate with any other third party supplier for the manufacture of such
item(s).

 

Notwithstanding Greatbatch’s exclusive right to manufacture and sell to QiG
Group all Relevant Project Components, the parties hereby agree that QiG Group
shall have the right to have a third party manufacture the external devices that
are currently manufactured by Minnetronix, Inc. and that are listed under the
heading “External Devices” on Appendix A; provided, that in the event that QiG
Group elects to have a third party manufacture the external devices, QiG Group
shall (i) provide Greatbatch [***] ([***]) months’ written notice prior to any
purchase of such external devices from such third party, (ii) purchase 100% of
its requirements for such external devices from a party other than Greatbatch
after the completion of the [***] ([***]) month notice period and Greatbatch
shall have no obligation to sell any external devices to QiG Group; and (iii)
purchase from Greatbatch, and be responsible for, all finished product, WIP, raw
material, components, all Safety Stock held in accordance with Section VII, all
Consignment Products, and any non-cancelable purchase orders outstanding with
suppliers related to such external devices.

 

B.     Term of Agreement. This Agreement will be in full force and effect from
the date of its execution until the earliest to occur of (i) the fifth
anniversary of the date of FDA approval that permits QiG Group to sell the
Products in the United States (the “Initial Term”), (ii) termination by the
mutual agreement of the Parties, or (iii) termination in accordance with the
following terms of this Agreement. This Agreement shall automatically be renewed
after the Initial Term for successive terms of one (1) year each (each a
“Renewal Term”) unless either Party gives written notice of non-renewal or
termination not less than three (3) months prior to the expiration of the
Initial Term or any such Renewal Term (the Initial Term and all Renewal Terms
being collectively the “Term”).

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 6 -

--------------------------------------------------------------------------------

 

 

C.     Right of First Refusal. During the period beginning one hundred eighty
(180) days prior to the expiration of the Term and ending on the date that is
six (6) months after the expiration of the Term (the “ROFR Period”), in the
event that QiG Group determines to seek to purchase its requirements for any
Relevant Project Components from a third party (a “Manufacturing Request”), QiG
Group shall promptly, and prior to taking any material steps towards engaging
any third party with respect to such Manufacturing Request, notify Greatbatch of
such Manufacturing Request (the “ROFR Notice”). During the ninety (90) day
period following Greatbatch’s receipt of the ROFR Notice (the “Exercise
Period”), (A) QiG Group and Greatbatch shall negotiate reasonably and in good
faith, on an exclusive basis, regarding entry into a definitive manufacturing
and supply agreement with respect to such Manufacturing Request and (B) QiG
Group shall not initiate any negotiations regarding a definitive manufacturing
and supply agreement with any third party regarding such Manufacturing Request.

 

If Greatbatch and QiG Group do not execute and deliver a definitive
manufacturing and supply agreement prior to the expiration of the Exercise
Period, QiG Group shall be free to negotiate a manufacturing and supply
agreement with any third party with respect to such Manufacturing Request (a
“Third Party Supply Agreement”) during the [***] ([***]) month period following
the expiration of the Exercise Period; provided that QiG Group, prior to
execution of any such Third Party Supply Agreement, provides Greatbatch with the
key terms of such Third Party Supply Agreement and offers it, for a period
lasting at least [***] ([***]) days after receipt of the Third Party Supply
Agreement by Greatbatch, the opportunity to enter into a manufacturing and
supply agreement with QiG Group on terms substantially consistent with such
Third Party Supply Agreement before executing such Third Party Supply Agreement.

 

For the avoidance of the doubt, the Parties hereby acknowledge that each
Manufacturing Request that occurs during the ROFR Period separately triggers QiG
Group’s right of first refusal obligations pursuant to this Section II.C;
provided that in the event that this Agreement has been terminated by QiG Group
pursuant to Section III.A(i) or Section III.A(ii), Greatbatch’s right of first
refusal under this Section II.C will be void and QiG Group may freely negotiate
with any third party to enter into a Third Party Supply Agreement.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 7 -

--------------------------------------------------------------------------------

 

 

III.          TERMINATION:

 

 

A.

Termination. Notwithstanding the provisions of Section II.B above, this
Agreement may be terminated in accordance with the following provisions:

 

 

(i)

Either Party may terminate this Agreement for cause by giving the other Party
thirty (30) days’ prior written notice of such termination if the other Party
materially breaches or defaults under any of the material terms or conditions of
this Agreement and fails to cure such material breach or default within sixty
(60) days after receiving notice thereof.

 

 

(ii)

Either Party shall have the right to terminate this Agreement in its entirety
if, at any time, (i) the other Party shall file in any court or agency pursuant
to any Legal Requirement of any state or country, a petition in bankruptcy or
insolvency or for reorganization or for an arrangement or for the appointment of
a receiver or trustee of the Party or of its assets, (ii) if the other Party
shall be served with an involuntary petition against it, filed in any insolvency
proceeding, and such petition shall not be dismissed within sixty (60) days
after the filing thereof, (iii) if the other Party shall propose or be a party
to any dissolution or liquidation, or (iv) if the other Party shall make an
assignment for the benefit of creditors. In the event that this Agreement is
terminated or rejected by a Party or its receiver or trustee under applicable
bankruptcy or other Legal Requirements due to such Party’s bankruptcy, then all
rights and licenses granted under or pursuant to this Agreement by such Party to
the other Party are, and shall otherwise be deemed to be, for purposes of
Section 365(n) of the U.S. Bankruptcy Code and any similar state or foreign
Legal Requirements, licenses of rights to “intellectual property” as defined
under Section 101(52) of the U.S. Bankruptcy Code. The Parties agree that all
intellectual property rights licensed hereunder, including, without limitation,
any patents or patent applications in any country of a Party covered by the
license grants under this Agreement, are part of the “intellectual property” as
defined under Section 101(52) of the Bankruptcy Code subject to the protections
afforded the non-terminating Party under Section 365(n) of the Bankruptcy Code,
any similar law or regulation in any other country; or

 

 

(iii)

A Party may terminate this Agreement by giving written notice to the other Party
if such other Party has given notice as to an event of Force Majeure and such
other Party has suspended its performance hereunder for more than [***] ([***])
consecutive days.

 

Nothing herein shall be construed to allow either Party the right to terminate
this Agreement for any inadvertent error or minor violation of any law or
regulation by the other Party; provided that such error or violation does not
have a material adverse effect on the other Party.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 8 -

--------------------------------------------------------------------------------

 

 

 

B.

Effect of Termination. In the event of termination by Greatbatch under Section
III.A, QiG Group will be responsible for paying for (i) raw materials and other
items subject to existing non-cancellable purchase orders that cannot otherwise
be reasonably used by Greatbatch, (ii) all work-in-process (“WIP”) costs
specific to QiG Group custom designs, (iii) all Safety Stock held in accordance
with Section VII, and (iv) all Consignment Products.

 

In the event of termination by QiG Group under Section III.A, QiG Group will be
responsible for paying for (i) all Safety Stock held in accordance with Article
VII and (ii) all Consignment Products. Greatbatch agrees to cooperate in good
faith to return, in a timely manner, any and all materials, documentation,
tooling, masks, capital and/or other equipment due to QiG Group. Any and all
expenses and/or shipping arrangements will be borne or made by the receiving
Party. Further, for the avoidance of doubt, the Parties agree that in the event
QiG Group terminates this Agreement under Section III.A(i) or Section III.A(ii),
QiG Group will have the right to have the Relevant Product Components
manufactured by another third party supplier and all right of first refusal
obligations of QiG Group under this Agreement will be void and not applicable.

 

 

C.

Amendment to Agreement. This Agreement may not be modified, changed or
terminated orally. No change, modification, addition, or amendment shall be
valid unless in writing indicating an intent to modify this Agreement and signed
by an authorized officer of each Party.

 

IV.           SUPPLY

 

 

A.

The Relevant Project Components shall be manufactured in accordance with the
specifications attached hereto as Appendix A (the “Specifications”) and in
accordance with the terms of the Quality Agreement between the parties,
effective as of September 22, 2015, as may be amended from time to time by the
mutual written agreement of the parties (the “Quality Agreement”).

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 9 -

--------------------------------------------------------------------------------

 

 

 

B.

During the Term, Greatbatch will manufacture the Relevant Project Components at
its Plymouth, Minnesota facility and then likely transfer the manufacturing to
another Greatbatch facility. If Greatbatch desires to relocate the manufacturing
of the Relevant Project Components to another Greatbatch facility, Greatbatch
shall provide written notice to QiG Group at least [***] months prior to
Greatbatch’s proposed date of such relocation, and shall provide such other
information reasonably required by QiG Group with respect to such proposed new
location. Following the notice, Greatbatch shall deliver to QiG Group a final
qualification report and final qualification parts in connection with the
relocation indicating Relevant Project Component equivalence at the new location
(“Validation Documentation”). Greatbatch shall not ship any Relevant Project
Component manufactured at the new facility until Greatbatch’s receipt of a
written notice from QiG Group that it is ready to receive Relevant Project
Components manufactured at the new facility (the “Facility Approval Notice”).
QiG Group will use best efforts to achieve all necessary regulatory approvals as
soon as possible after QiG Group’s approval of the Validation Documentation. If
QiG Group does not issue the Facility Approval Notice within [***] days after
all regulatory approvals necessary to manufacture the Relevant Project Component
at the new location have been obtained and Greatbatch has reasonably
demonstrated that it can manufacture the Relevant Project Components in
accordance with this Agreement at such new location, then all prices for the
Relevant Project Components will automatically increase by [***] percent
([***]%) unless and until QiG Group issues the Facility Approval Notice. QiG
Group shall provide reasonable cooperation to Greatbatch in connection with the
qualification of such new facility. Notwithstanding anything in this Agreement
to the contrary, QiG Group understands and agrees that the relocation of the
manufacturing facility from the Plymouth, Minnesota facility is accounted for in
the pricing in Appendix B, and therefore, no pricing adjustments will be made as
result of such relocation.

 

V.             PRICE; ORDERS, DELIVERY, PAYMENT, INSPECTION:

 

 

A.

The prices for the Relevant Project Components shall be as set forth in Appendix
B of this Agreement and such prices will be fixed for the Initial Term unless
otherwise mutually agreed upon by the Parties in writing, or as may be adjusted
in accordance with this Section V, or as may be reduced in accordance with
Section V.P below. Notwithstanding anything in this Agreement to the contrary,
the price for any Relevant Project Component may be increased from time-to-time
during the Term if Greatbatch’s cost for any individual material or all of the
materials used in the manufacture of such Relevant Project Component increases
by [***]% or more.  If Greatbatch determines that there has been such a change
to its cost, it will provide QiG Group with at least 30 days’ written notice
before adjusting the price for such Relevant Project Component; provided, that
the change in price shall not exceed the increased cost to Greatbatch.

 

 

B.

Simultaneous with the execution of this Agreement, and on each January 1st
thereafter, QiG Group will deliver to Greatbatch a blanket purchase order by
product category described on Exhibit B for the Relevant Project Components to
be purchased by QiG Group for the remaining calendar year (a “Firm Purchase
Order”).

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 10 -

--------------------------------------------------------------------------------

 

 

 

C.

To the extent that the price for a Relevant Project Component is based on a
volume pricing table set forth in Appendix B (a “Volume Priced Component”), the
price for such Volume Priced Component shall be based on the amount of such
Volume Priced Components ordered pursuant to the Firm Purchase Order. In the
event that QiG Group has not, in any calendar year, purchased and accepted
delivery of a Volume Priced Component in such an amount that equals or exceeds
the amount of such Volume Priced Components ordered pursuant to the Firm
Purchase Order for such calendar year, then QiG Group shall, within [***] days
after the end of such calendar year, pay to Greatbatch an amount equal to (i)(A)
the number of such Volume Priced Components ordered pursuant to the Firm
Purchase Order, minus (B) the actual number of such Volume Priced Components
purchased and accepted by QiG Group during such calendar year, multiplied by
(ii) the price of such Volume Priced Component. For illustrative purposes only,
if QiG Group ordered [***] IPGs pursuant to the Firm Purchase Order for 2016,
but only purchased and accepted [***] IPGs in 2016, QiG Group would pay $[***]
to Greatbatch by [***] (i.e. [***] – [***] x $[***] = $[***]).

 

 

D.

In the event that QiG Group, in any calendar year, purchases and accepts
delivery of a Volume Priced Component in an amount that exceeds the amount of
such Volume Priced Components ordered pursuant to the Firm Purchase Order for
such calendar year, and the purchased and accepted amount would have caused a
different price to be applicable if such amount would have been included in the
Firm Purchase Order for such calendar year, then Greatbatch shall, within [***]
days after the end of such calendar year, issue a rebate to QiG Group in an
amount equal to (i)(A) the actual number of such Volume Priced Components
purchased and accepted by QiG Group during such calendar year, multiplied by (B)
the price of such Volume Priced Component as dictated by the amount set forth in
the Firm Purchase Order, minus (ii)(A) the actual number of such Volume Priced
Components purchased and accepted by QiG Group during such calendar year,
multiplied by (B) what the price of such Volume Priced Component would have been
if the actual number of such Volume Priced Components purchased and accepted by
QiG Group would have been included in the Firm Purchase Order. For illustrative
purposes only, if QiG Group ordered [***] IPGs pursuant to the Firm Purchase
Order for 2016, but purchased and accepted [***] IPGs in 2016, Greatbatch would
issue a rebate of $[***] to QiG Group by [***] (i.e. [[***] x $[***]] – [[***] x
$[***]] = $[***]).

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 11 -

--------------------------------------------------------------------------------

 

 

 

E.

QiG Group may lock in the price for a precious metal used in a Relevant Project
Component as follows:

 

 

(i)

QiG Group will provide written notification to its Greatbatch Account Manager
and customer service representative when it wants to lock in the price for a
precious metal used in a Relevant Project Component.  In addition, forecast
information and duration of the “price-lock” needs to be specified.

 

 

(ii)

Within 48 hours of receiving such notification, Greatbatch will lock in the
price of the precious metal.  Upon locking in the price, Greatbatch will notify
QiG Group of the locked-in price.

 

 

(iii)

A locked-in price will become effective for the Relevant Project Component
beginning the following January 1 (unless the notice provided by QiG Group under
Section V.E.(ii) above is given on December 31, then the locked-in price will
not become effective until the following January 2).  If QiG Group does not
notify Greatbatch to lock in the price for a precious metal, the cost of the
precious metal will be the market price of the precious metal at the time of
Greatbatch’s receipt of the applicable purchase order.

 

 

(iv)

In the event that any precious metal that is part of such “price-lock” is unused
during the applicable “price-lock” period (“Unused Precious Metal”), the cost of
such Unused Precious Metal will remain the “price-lock” price until the
inventory of such Unused Precious Metal is fully depleted. In the event that QiG
Group elects to lock the price for a precious metal that is the same metal as
the Unused Precious Metal, such requested “price-lock” price will not be
effective until the inventory of such Unused Precious Metal is fully depleted.
Notwithstanding anything in this Section V.E.(iv) to the contrary, all Unused
Precious Metals will be purchased by QiG Group within ninety (90) days of the
end of the applicable “price-lock” period at Greatbatch’s cost for such Unused
Precious Metals.

 

 

(v)

In the event that Greatbatch’s inventory of any precious metal that is part of
such “price-lock” is fully depleted prior to the completion of the applicable
“price-lock” period, the “price-lock” shall be terminated and the cost of the
precious metal will be the market price of the precious metal at the time of
Greatbatch’s next purchase of such precious metal.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 12 -

--------------------------------------------------------------------------------

 

 

 

F.

Greatbatch will provide Relevant Project Components to QiG Group pursuant to
purchase orders to be issued by QiG Group. The general terms and conditions of
sale for Relevant Project Components sold by Greatbatch to QiG Group hereunder
are set forth in this Agreement. The Parties expressly agree that none of the
terms and conditions of any standard purchase preprinted forms used by either
Greatbatch or the QiG Group in effectuating the purchase and sale transactions
contemplated by this Agreement (including, but not limited to, purchase orders,
acknowledgements and acceptance forms, invoices, labels and shipping documents)
will apply, except insofar as a purchase order or acknowledgement establishes
the quantity, destination, shipping information and the desired delivery date
(which must satisfy the standard lead times identified for the applicable
Relevant Project Component).

 

 

G.

QiG Group’s purchase order form shall set forth, at a minimum, the quantity of
Relevant Project Components ordered, the address of the facility of QiG Group
(or its affiliate) to which the Relevant Project Components should be shipped
and requested delivery dates (which shall be no less than the lead time set
forth in Section VI below).

 

 

H.

Unless QiG Group gives Greatbatch written instructions as to the method of
shipment and carrier, Greatbatch shall select the methods of shipment and the
carrier for the respective purchase order. Greatbatch shall prepay
transportation and similar charges upon shipment. Title to all Relevant Project
Components conforming to QiG Group’s purchase order shall pass, free and clear
of all encumbrances, at the EXW shipping point, which shall be Greatbatch’s
facility. QiG Group assumes and agrees to bear all risk of damage or loss to the
Relevant Project Components after delivery by Greatbatch to the carrier at the
EXW shipping point. QiG Group hereby releases Greatbatch from any and all claims
and liability with respect to any such in-transit damages or losses to the
goods. QiG Group shall be responsible for securing insurance coverage to cover
shipments and deliveries hereunder.

 

 

I.

Greatbatch shall perform testing to ensure that certain Relevant Project
Components delivered to QiG Group meet all applicable Specifications and such
testing will be at Greatbatch’s cost, except as set forth below.  QiG Group
inspection of incoming Relevant Project Components will rely upon Greatbatch
testing and may consist of an examination of Greatbatch’s testing documentation
as well as independent testing by QiG Group.  Notwithstanding the foregoing, QiG
Group shall attempt to inspect all Relevant Project Components within thirty
(30) days, but not to exceed sixty (60) days, and notify Greatbatch if any of
the Relevant Project Components fail to meet the Specifications and quality
standards for such Relevant Project Components.  Prior to the Effective Date,
QiG Group has provided, at no cost to Greatbatch, one (1) IPG board level
testing station, one (1) IPG Charging 6 Bay station, one (1) IPG Fine Tune
station, one (1) IPG final functional testing station and one (1) EPG board
level testing station (the “Generation 1 Stations”). On or prior to March 31,
2016, QiG Group shall provide, to Greatbatch, one (1) IPG board level testing
station and one (1) IPG final functional testing station (the “Generation 1A
Stations”).  To the extent that Greatbatch requests QiG Group to provide new or
additional testing stations in addition to the Generation 1 or Generation 1A
Stations (the “New Testing Stations”), QiG Group will use commercially
reasonable efforts to develop, design and provide such New Testing Stations on
the delivery schedule requested by Greatbatch. Greatbatch will be responsible
for the hardware costs of the Generation 1A Stations and New Testing Stations
and such costs shall be negotiated in good faith between the parties. Greatbatch
will be responsible for its costs to validate and implement the Generation 1A
Stations and New Testing Stations.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 13 -

--------------------------------------------------------------------------------

 

 

If QiG Group provides (i) periodic revisions or improvements, both software
related and mechanical/structural, to any testing stations or (ii) new testing
stations as a result of a QiG Group initiated redesign or modification,
including, without limitation the Generation 2 Testing Stations expected to be
delivered by QiG Group to Greatbatch in the first quarter of 2017 (collectively,
the “QiG Initiated Stations”), QiG Group will be solely responsible for the cost
of such revisions or improvements or such QiG Initiated Stations and QiG Group
will reimburse Greatbatch for Greatbatch’s costs to validate and implement such
revisions or improvements or QiG Initiated Stations. QiG Group will be
responsible for all labor costs associated with developing, designing and
providing the Generation 1A Stations, New Testing Stations, and QiG Initiated
Stations. QiG Group agrees that it will provide, at no cost to Greatbatch,
reasonable and necessary training, technical support and troubleshooting
assistance for the Generation 1A Stations, New Testing Stations, and QiG
Initiated Stations until such time that the Generation 1A Stations, New Testing
Stations or QiG Initiated Stations, as applicable, perform to a mutually agreed
upon level that is to be negotiated in good faith between the Parties.  Within
thirty (30) days of the expiration or termination of this Agreement, QiG Group
shall purchase from Greatbatch all testing stations provided to, or purchased
by, Greatbatch under this Section V.I. and the purchase price shall be the net
book value of all such testing stations at the date of expiration or termination
of this Agreement.

 

 

J.

QiG Group and Greatbatch agree to use their best efforts to mutually agree on
(i) a testing protocol for the Relevant Project Components and (ii) a resolution
with the suppliers of the [***] to reduce the “[***]” rate of the applicable
[***], in order to achieve a “[***]” for the Relevant Project Components
(including, all underlying [***]) of at least [***]% as soon as possible.
Greatbatch and QiG Group hereby appoint Mauricio Arellano and Norbert Kaula as
their respective representatives to achieve such agreement.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 14 -

--------------------------------------------------------------------------------

 

 

 

K.

Commencing on [***], QiG Group shall pay to Greatbatch, in addition to the price
for the IPGs and EPGs set forth in Appendix B of this Agreement, a surcharge for
each IPG and EPG purchased by QiG Group during the next [***] ([***]) months
(the “[***] Surcharge”). Greatbatch and QiG Group agree to calculate the [***]
Surcharge on [***] and [***] (each the “[***] Surcharge Calculation Date”), and
such [***] Surcharge shall remain in effect for [***] ([***]) months after the
applicable [***] Surcharge Calculation Date. The [***] Surcharge for each IPG
and EPG, as applicable, shall be calculated as follows (i)(A)(I) [***]% minus
(II) the IPG or EPG [***] before final assembly, as applicable, multiplied by
(B) the cost of the IPG or EPG [***], as applicable, multiplied by (ii) [***]
percent ([***]%). For purposes of calculating the [***], Greatbatch (i) will not
include [***] that failed the Greatbatch incoming inspection process, that were
returned to the [***] supplier, and for which Greatbatch was issued a refund,
and (ii) will include [***] that failed the [***] testing in calculating
previous [***] Surcharges but that pass the [***] testing in calculating the
current [***] Surcharge and that Greatbatch will use in the production of the
IPGs and EPGs, as determined in its sole reasonable discretion. For purposes of
calculating the [***] Surcharge, the cost of the IPG [***] is $[***] and the
cost of the EPG [***] is $[***]. For illustrative purposes only, if an IPG has a
[***] of [***]%, then QiG Group will pay a [***] Surcharge of $[***] to
Greatbatch for each IPG purchased by QiG Group during the next [***] ([***])
month period (i.e. ([[***]% - [***]%) * $[***]] * [***]% = $[***]). For
illustrative purposes only, if an EPG has a [***] of [***]%, then QiG Group will
pay a [***] Surcharge of $[***] to Greatbatch for each EPG purchased by QiG
Group during the next [***] ([***]) month period (i.e. ([[***]% - [***]%) *
$[***]] * [***]% = $[***]). The [***] Surcharge for the IPG will be discontinued
once the IPG [***] before final assembly and the IPG [***] after final assembly
each achieve [***]% or [***], whichever occurs first. The [***] Surcharge for
the EPG will be discontinued once the EPG [***] before final assembly and the
EPG [***] after final assembly each achieve [***]% or [***], whichever occurs
first.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 15 -

--------------------------------------------------------------------------------

 

 

 

L.

Commencing on [***], QiG Group shall pay to Greatbatch, in addition to the price
for the IPGs and EPGs set forth in Appendix B of this Agreement, a surcharge for
each IPG and EPG purchased by QiG Group during the next [***] ([***]) months
(the “IPG/EPG Level Surcharge”); provided, that in the event that an IPG/EPG
Level Surcharge is payable with regards to the EPGs and the manufacturing of the
EPGs has not yet been moved to Greatbatch’s Tijuana, Mexico facility, then the
[***] Surcharge for the EPGs shall be paid in lieu of the IPG/EPG Level
Surcharge. Greatbatch and QiG Group agree to calculate the IPG/EPG Level
Surcharge on [***] and every [***] ([***]) months thereafter (each calculation
date, the “IPG/EPG Level Surcharge Calculation Date”), and such IPG/EPG Level
Surcharge shall remain in effect until the next IPG/EPG Level Surcharge
Calculation Date. The IPG/EPG Level Surcharge for each IPG and EPG, as
applicable, shall be calculated as follows (i)(A)(I)(x) [***]% minus (y) the IPG
or EPG [***] before final assembly, as applicable, multiplied by (II) the cost
of the IPG or EPG [***], as applicable, multiplied by (B) [***] percent
([***]%), plus (ii)(A)(I) [***]% minus (II) the IPG or EPG [***] after final
assembly, as applicable, multiplied by (B) the price of the IPG or EPG, as
applicable. For purposes of calculating the [***], Greatbatch (i) will not
include [***] that failed the Greatbatch incoming inspection process, that were
returned to the [***] supplier, and for which Greatbatch was issued a refund,
and (ii) will include [***] that failed the [***] testing in calculating
previous [***] Surcharges or IPG/EPG Level Surcharges but that pass the [***]
testing in calculating the current IPG/EPG Level Surcharge and that Greatbatch
will use in the production of the IPGs and EPGs, as determined in its sole
reasonable discretion. For purposes of calculating the IPG/EPG Level Surcharge,
the cost of the IPG [***] is $[***], the cost of the EPG [***] is $[***], the
price of the IPG is $[***], and the price of the EPG is $[***]. For illustrative
purposes only, if an IPG has a [***] of [***]%, and a [***] of [***]%, then QiG
Group will pay an IPG/EPG Level Surcharge of $[***] to Greatbatch for each IPG
purchased by QiG Group during the next [***] ([***]) month period (i.e. [([***]%
- [***]%) * $[***] * [***]%] + [([***]% - [***]%) * $[***]] = $[***]). For
illustrative purposes only, if an EPG has a [***] of [***]%, and a [***] of
[***]%, then QiG Group will pay an IPG/EPG Level Surcharge of $[***] to
Greatbatch for each EPG purchased by QiG Group during the next [***] ([***])
month period (i.e. [([***]% - [***]%) * $[***] * [***]%] + [([***]% - [***]%) *
$[***]] = $[***]).The IPG/EPG Level Surcharge for the IPG will be discontinued
once the IPG [***] before final assembly and the IPG [***] after final assembly
each achieve [***]%. The IPG/EPG Level Surcharge for the EPG will be
discontinued once the EPG [***] before final assembly and the EPG [***] after
final assembly each achieve [***]%. In the event that QiG Group is paying an
IPG/EPG Level Surcharge on [***], QiG Group and Greatbatch agree to use their
best efforts to reduce the effects of a “[***]” for the Relevant Project
Components (including, all underlying [***]) of less than [***]%.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 16 -

--------------------------------------------------------------------------------

 

 

 

M.

QiG Group may reject any shipments or deliveries of Relevant Project Components,
which are short, nonconforming, defective or deficient and may request
correction and/or replacement. Rejected shipments or deliveries of Relevant
Project Components shall at the request of Greatbatch be set aside for
Greatbatch inspection, or at the request of Greatbatch shipped freight prepaid
to Greatbatch. Within 48 hours of receiving returns of Relevant Project
Components, Greatbatch will host a joint call with QiG Group to discuss the
return, product history and investigational plan. All Relevant Project
Components returned to Greatbatch shall be accompanied by a copy of their
original shipping documents and the name and phone number of the person at QiG
Group to be contacted regarding such return. Promptly upon receipt of notice of
such shortage, non-conformance, defect or deficiency, Greatbatch shall
immediately notify QiG Group:

 

 

(i)

as to how Greatbatch will replace the defective or deficient Relevant Project
Components upon return to Greatbatch, ship replacement Relevant Project
Components, or otherwise promptly correct such shortage, non-conformance, or
deficiency; and/or

 

 

(ii)

whether such shipment of Relevant Project Components shall be set aside and held
by QiG Group or returned to Greatbatch and the address to which such affected
Relevant Project Components should be returned, or whether such Relevant Project
Components should otherwise be disposed of.

 

If QiG Group elects to cancel or rescind such purchase, Greatbatch shall
promptly refund and reimburse QiG Group the price paid by QiG Group for such
purchase, including freight and shipping costs incurred by QiG Group in
connection with such purchase, prior to the return of the same to Greatbatch. If
QiG Group elects to have the Relevant Project Component replaced, Greatbatch
shall bear or shall reimburse QiG Group for all costs and expenses incurred by
QiG Group to repackage, ship and return affected Relevant Project Components to
Greatbatch and shall issue a credit memo for the amount of the purchase price of
the returned Relevant Project Components.

 

 

N.

In the event of any act of God or any other causes beyond the control of
Greatbatch, including, but not limited to, fire, explosion, strikes, war, act of
any governmental agency, material or labor shortage (excluding those related to
Greatbatch’s workforce), or a delay or default caused by a common carrier
(“Force Majeure”), Greatbatch shall not be liable for any delay in shipment or
non-delivery of Relevant Project Components covered by this Agreement arising
from Force Majeure, and QiG Group shall be bound to accept the delayed shipment
or delivery made within a reasonable time. In the event of Force Majeure, QiG
Group shall be excused for the failure to take and pay for Relevant Project
Components ordered under this Agreement, until such Force Majeure condition is
removed. In the event such conditions cannot be corrected by the Party affected
within [***] days of the date of the occurrence of a Force Majeure event, then
the other Party shall have the option to terminate this Agreement upon one (1)
month prior notice.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 17 -

--------------------------------------------------------------------------------

 

 

 

O.

For the three year period commencing upon the Effective Date, payment terms are
net [***], EXW Greatbatch’s shipping point. Commencing upon the three year
anniversary of the Effective Date through the end of the Term, payment terms
will become net [***], EXW Greatbatch’s shipping point.

 

 

P.

The Parties will collaborate to identify cost reduction initiatives relating to
the supply of the Relevant Project Components under this Agreement. Subject to
Section IV.B. above, all savings and cost reductions (other than those
recognized in connection with any relocation of a manufacturing facility,
including, without limitation, a relocation of the manufacturing facility from
the Plymouth, Minnesota facility), regardless of whether identified
collaboratively or independently by either party, will be shared by the parties
as set forth below and each party will disclose to the other any such savings
that it acquires or generates. Subject to Section IV.B. above, in the event that
Greatbatch and QiG Group are willing to share the expenses associated with the
implementation of any such cost proposal (other than any relocation of a
manufacturing facility, including, without limitation, a relocation of the
manufacturing facility from the Plymouth, Minnesota facility), cost savings
shall be split [***] percent ([***]%) to Greatbatch and [***] percent ([***]%)
to QiG Group; provided, that any such cost savings shall not be split until each
Party has fully recovered its expenses associated with any such cost proposal.
The Parties will recover their expenses [***] (e.g. if Greatbatch invests $[***]
and QiG Group invests $[***] in the cost proposal, Greatbatch will receive
$[***] for every $[***] recovered by QiG Group prior to the split of the cost
savings). Greatbatch shall give QiG Group notice of the implementation of cost
reductions as soon as practicable, but in any event within thirty (30) days of
the accomplished reduction. Thereafter, all invoices shall reflect the
applicable reduced pricing and the Parties shall work to update Appendix B
accordingly.

 

VI.           LEAD TIME:

 

Standard lead time for the manufacturing of the Relevant Project Components is
twelve (12) weeks unless the Parties otherwise agree in writing. Greatbatch will
use commercially reasonable efforts to deliver the Relevant Project Components
in accordance with the foregoing lead time.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 18 -

--------------------------------------------------------------------------------

 

 

VII.          FORECAST PLANNING:

 

On a monthly basis, QiG Group will provide [***] ([***]) months firm orders and
an additional [***] ([***]) months forecasts stating its anticipated needs for
Relevant Project Components. This will provide Greatbatch with a total of [***]
months projected requirements for planning purposes at all times. A new firm
order requirement and the next month forecasted quantity will be provided each
succeeding month. Forecasts covering QiG Group’s [***]-month anticipated needs
are non-binding and are for planning purposes only.

 

Greatbatch will hold at least [***] ([***]) weeks of supply of the Relevant
Project Components, [***] ([***]) of which will be in the form of finished goods
and [***] ([***]) of which will be in the form of WIP (collectively, the “Safety
Stock”). This [***] ([***]) week amount will be determined based on the rolling
[***] ([***]) month forecast described in the preceding paragraph. The Safety
Stock will satisfy any purchase order according to FIFO (First In First Out)
unless otherwise agreed to by the Parties in writing. QiG Group will be
responsible for purchasing any Relevant Project Component that remains in Safety
Stock for at least [***] ([***]) months.

 

 

VIII.          CONSIGNMENT

 

 

A.

Simultaneous with the execution of the Agreement, and on a monthly basis
thereafter, QiG Group will provide Greatbatch with a [***] ([***]) month rolling
forecast of QiG Group’s reasonably expected monthly order volume for the
Relevant Project Components to be consigned at QiG Group’s Blaine, Minnesota
location (the “Consigned Products”) for the forthcoming [***] ([***]) month
period. QiG Group will update the forecast monthly. QiG Group shall order
Consignment Product by issuance of a purchase and/or blanket order (each, a
“Consignment Order”) to Greatbatch. Consignment Orders which conform to the
terms of this Agreement shall be deemed to be accepted by Greatbatch and
Greatbatch will acknowledge receipt of such Consignment Order by written notice
to QiG Group, (“Acknowledged Order”). Greatbatch will use commercially
reasonable efforts to accept any orders or blanket orders that do not conform to
the terms of this Agreement. Greatbatch shall deliver such Consignment Products
in accordance with the delivery schedule specified by QiG Group in the
Consignment Order.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 19 -

--------------------------------------------------------------------------------

 

 

 

B.

Upon receipt of a Consigned Product, QiG Group shall track the Consignment
Products received (“Consignment Inventory”) and copies of the tracking reports
shall be furnished to Greatbatch upon request. Consignment Inventory shall be
identified as the property of Greatbatch. The Consignment Products shall be
segregated from other goods either of the same or different character belonging
either to QiG Group or to any third party and shall be stored in an area in QiG
Group’s (or its designee’s) facility separate from and not mingled with other
goods of QiG Group or of any third party. Upon reasonable advance written notice
and no more than once in any calendar quarter, Greatbatch shall have reasonable
access to the Consignment Products at QiG Group’s facility for the purposes of
verifying tracking reports or inspecting the condition of the Consignment
Products. In the event of a threatened or actual breach of the Agreement by QiG
Group, Greatbatch shall have immediate access to the Consignment Products for
the purposes of verifying tracking reports or inspecting the condition of the
Consignment Products. The Parties agree that the volume of Consignment Inventory
will be taken into account when calculating the amount of Greatbatch’s Safety
Stock. Notwithstanding anything in this Agreement to the contrary, in no event
will the Consignment Inventory exceed [***] ([***]) weeks of supply of the
Relevant Project Components and Greatbatch shall have no obligation to deliver
any Relevant Project Components to QiG Group for so long as the Consignment
Inventory equals or exceeds [***] ([***]) weeks of supply of the Relevant
Project Components. This [***] ([***]) week amount will be determined based on
the rolling [***] ([***]) month forecast described in Section VIII.A. above.

 

 

C.

If QiG Group receives any Consignment Products which do not meet the applicable
Specifications, QiG Group shall notify Greatbatch within two weeks of discovery
or determination that the Consignment Products do not meet Specifications, and
Greatbatch shall retrieve such Consignment Products from QiG Group at
Greatbatch’s sole expense, and QiG Group shall not be required to pay for any
such Consignment Products. Notwithstanding the immediately preceding sentence,
QiG Group may not return, and QiG Group will be responsible for paying the
applicable price for, any Consignment Product if any repair, alteration,
modification or work has been performed on such Consignment Product, or if the
alleged defect is the result of abuse, misuse, improper maintenance or storage,
accident, action or inaction on the part of any QiG Group, its agents or
representatives or any third party after delivery of the Consignment Products to
QiG Group or its designee.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 20 -

--------------------------------------------------------------------------------

 

 

 

D.

Upon QiG Group transferring any Consignment Product out of Consignment Inventory
and (i) into QiG Group’s or its designee’s manufacturing area or (ii) out of QiG
Group’s Blaine, Minnesota facility (“Transfer Date”) such Consignment Product
shall become the property of QiG Group and title to such Consignment Product
shall pass to QiG Group. QiG Group shall notify Greatbatch every Monday (or the
next business day, if Monday is not a business day) of the quantity of
components and part numbers of Consignment Products transferred the prior week
via a consignment reconciliation document, and Greatbatch shall send QiG Group
an invoice for the transferred Consignment Products. QiG Group shall pay such
invoice within [***] days for invoices issued during the three year period
commencing upon the Effective Date and within [***] days for invoices issued
during the period commencing upon the three year anniversary of the Effective
Date through the end of the Term. All reconciliations and payments will be in US
dollars.

 

 

E.

All Consignment Products stored on QiG Group’s or its designee’s premises shall
be Greatbatch’s property until the Transfer Date, and QiG Group may return
Consignment Product to Greatbatch at any time prior to such Transfer Date. QiG
Group shall withdraw the Consignment Products on a FIFO (First In First
Out)basis for each type of Consignment Product. QiG Group will be responsible
for purchasing any Consignment Product that remains in Consignment Inventory for
at least six (6) months. QiG Group shall be responsible for, and shall indemnify
and hold harmless Greatbatch against, any loss, damage, shrinkage or spoilage,
to the Consignment Products while at QiG Group’s or its designee’s facility. QiG
Group shall maintain insurance, which may include a program of self insurance,
covering such losses.

 

 

F.

QiG Group will not sell, transfer, assign, pledge, grant a security interest in
or otherwise encumber or allow any third party to obtain an interest in any
Consignment Products in Consignment Inventory. QiG Group shall comply with all
Legal Requirement which might in any way affect Greatbatch’s ownership of the
Consignment Products and shall defend, indemnify and hold harmless Greatbatch
from and against all losses, damages and expenses arising out of any levy,
attachment, lien or process involving the Consignment Products to the extent
caused by QiG Group, its agents or representatives.

 

 

G.

If the quantity of any Consignment Product ordered by QiG Group for any month is
collectively less than [***] percent ([***]%) of the quantity ordered for the
preceding month, the Parties shall participate in a telephone conference to
discuss the reason for QiG Group’s decrease in consumption of such Consignment
Product. If in the month immediately following such decrease in consumption of
such Consignment Product, the quantity ordered is collectively less than or
equal to the quantity ordered for the preceding month, Greatbatch and QiG Group
may agree on a new level of Consignment Inventory for such Consignment Product.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 21 -

--------------------------------------------------------------------------------

 

 

 

H.

Subject to the first sentence of Section VIII.C, all charges and expenses for
shipping, receiving, handling and storing the Consignment Products shall be paid
by QiG Group. All public charges, whether in the nature of sales, occupational
or other taxes (excluding taxes levied on the income of Greatbatch) or
assessment or license fees, which shall be levied or assessed against the
Consignment Products at QiG Group’s or its designee’s facility, or against QiG
Group or Greatbatch by reason hereof, by any federal, state or municipal
authority, shall be paid by QiG Group.

 

 

I.

QiG Group shall provide Greatbatch with at least [***] ([***]) days’ written
notice if any Consignment Product shall be discontinued or replaced. The Parties
shall discuss in good faith any needed adjustment in the rolling forecast and in
any Consignment Order for such Product or Products as a result of such planned
discontinuance or replacement.

 

IX.           CANCELLATION CHARGES:

 

In the event that QiG Group cancels a purchase order inside the agreed upon lead
time, QiG Group will be responsible for all finished Relevant Project
Components, WIP and raw materials and components. In the event that QiG Group
cancels a purchase order outside of agreed upon lead time, QiG Group and
Greatbatch will negotiate resulting costs.

 

X.            WARRANTY, INDEMNITY AND LIABILITY LIMITATION:

 

A.     Limited Warranty:

 

 

(i)

Greatbatch warrants that all of the Relevant Project Components sold to QiG
Group under this Agreement shall be in conformance with the Specifications and
the Quality Agreement applicable to such Relevant Project Components and shall
be free from defects in material and workmanship for a period of eighteen (18)
months from the date of delivery (the “Warranty Period”). Subject to the
limitations set forth in the following sentence, if any Relevant Project
Components do not meet the applicable Specifications and QiG Group shall have
timely notified Greatbatch, Greatbatch will replace such Relevant Project
Components free of charge and will reimburse QiG Group for reasonable
out-of-pocket expenses (including freight and customs clearance, if any)
incurred by QiG Group in connection with (a) shipment of replacement Relevant
Project Components to the same location and (b) shipment of the nonconforming
Relevant Project Components back to Greatbatch (if so requested by Greatbatch).

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 22 -

--------------------------------------------------------------------------------

 

 

The warranty provided in this Section X.A. shall not apply to any Relevant
Project Component failure occurring as a result of any of the following: (x) any
abuse, misuse, neglect or attempted disassembly of a Relevant Project Component,
or any alteration or modification of a Relevant Project Component without the
express written consent of Greatbatch; (y) any improper operation, improper
installation, or any other use inconsistent with any applicable law, rule,
regulation or governmental directive; or (z) any use inconsistent with the then
current specifications of Greatbatch for the Relevant Project Components or with
any warning or recommended operating practice specific to the Relevant Project
Components that may be provided to QiG Group from time to time by Greatbatch in
writing.

 

 

(ii)

THE WARRANTY PROVIDED IN SECTION X.A(i) ABOVE IS THE SOLE AND EXCLUSIVE WARRANTY
GIVEN BY GREATBATCH WITH RESPECT TO THE RELEVANT PROJECT COMPONENTS. GREATBATCH
MAKES NO OTHER WARRANTY AND HEREBY EXPRESSLY DISCLAIMS ALL OTHER REPRESENTATIONS
OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY
IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE, AND
NO IMPLIED WARRANTY SHALL ARISE BY USAGE OF TRADE, COURSE OF DEALING OR COURSE
OF PERFORMANCE. NO REPRESENTATIVE OF GREATBATCH IS AUTHORIZED TO GIVE OR MAKE
ANY OTHER REPRESENTATION OR WARRANTY OR TO MODIFY THE FOREGOING WARRANTY IN ANY
WAY.

 

 

B.

LIMITATION OF LIABILITY.  NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE
CONTRARY, IN NO EVENT SHALL GREATBATCH BE LIABLE TO QIG GROUP (X) FOR BREACH OF
WARRANTY OR BASED UPON ANY OTHER THEORY UNDER THIS AGREEMENT FOR AN AMOUNT IN
EXCESS OF THE TOTAL AMOUNT THAT QIG GROUP HAS PAID OR THAT IS PAYABLE TO
GREATBATCH UNDER THIS AGREEMENT FOR THE IMMEDIATELY PRECEDING 12 MONTH PERIOD,
BUT IN NO EVENT MORE THAN $10 MILLION, BUT SUCH LIMITATION WILL NOT APPLY TO
GREATBATCH’S INDEMNIFICATION OBLIGATIONS UNDER SECTION X.D OR (Y) FOR ANY LOST
PROFITS OR ANY CONSEQUENTIAL, INDIRECT, INCIDENTAL, EXEMPLARY OR SPECIAL DAMAGES
OF ANY KIND.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 23 -

--------------------------------------------------------------------------------

 

 

 

C.

QiG Group hereby agrees to indemnify and hold harmless Greatbatch and any
officer, director, employee, or stockholder of Greatbatch (the “Greatbatch
Indemnitees”) from and against any and all losses, damages, liabilities,
expenses, costs or damages arising out of or related to any claim or lawsuit
against any Greatbatch Indemnitees:

 

 

(i)

on account of personal injury or death to any person, resulting from the use of
any Product of QiG Group in which any Relevant Project Components are used,
unless both of the following facts are present:  (a) one of the Relevant Project
Components was not manufactured by Greatbatch within the Specifications for such
Relevant Project Components provided for in this Agreement, and (b) such
Relevant Project Components was the sole and direct cause in the failure of any
Product that gives rise to any such personal injury or death;

 

 

(ii)

for infringement of any patent or intellectual property rights of any third
party as a result of Greatbatch’s use of a QiG Group design for the Relevant
Project Component or Product;

 

 

(iii)

for any violation of law by QiG Group; and

 

 

(iv)

for the gross negligence or willful misconduct of QiG Group.

 

QiG Group will defend, manage and assume all costs of any lawsuit or claim
related to the indemnification provided for in this Section X.C.  Greatbatch
will notify QiG Group promptly after Greatbatch becomes aware of any claim by
any third party with respect to which Greatbatch would be entitled to
indemnification hereunder.  Greatbatch will not settle or offer to settle any
such claim or lawsuit without QiG Group’s prior written approval.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 24 -

--------------------------------------------------------------------------------

 

 

 

D.

Greatbatch hereby agrees to indemnify and hold harmless QiG Group from and
against any and all losses, damages, liabilities, expenses, costs or damages
arising out of or related to any claim or lawsuit against QiG Group or any
officer, director, employee, stockholder or agent of QiG Group (the “QiG Group
Indemnitees”):

 

 

(i)

on account of personal injury or death to any person, resulting from the use of
any Relevant Project Components in any Product of QiG Group, unless either of
the following facts are present: (a) the Relevant Project Component(s) were
manufactured by Greatbatch within the Specifications for such Relevant Project
Components provided by QiG Group, and (b) the Relevant Project Component(s) was
not the sole and direct cause in the failure of the Product that gives rise to
any such personal injury or death;

 

 

(ii)

for infringement of any patent or intellectual property rights of any third
party as a result of QiG Group’s use of a Greatbatch design for a Relevant
Project Component;

 

 

(iii)

for any violation of law by Greatbatch; and

 

 

(iv)

for the gross negligence or willful misconduct of Greatbatch.

 

Greatbatch will defend, manage and assume all costs of any lawsuit or claim
related to the indemnification provided for in this Section X.D. QiG Group will
notify Greatbatch promptly after QiG Group becomes aware of any claim by any
third party with respect to which QiG Group would be entitled to indemnification
hereunder. QiG Group will not settle or offer to settle any such claim or
lawsuit without Greatbatch’s prior written approval

 

E.     Insurance.

 

 

(i)

Each Party shall procure and maintain products liability and completed products
insurance and cause each of its insurers to issue an endorsement to the
following insurance policies adding the other Party as an additional insured. 
The insurance required under this Section X.E. must include the following
coverage limits:

 

(a)           Bodily Injury:

 

$[***]  Each Occurrence

$[***]  General Aggregate

 

(b)           Property Damage:

 

$[***]  Each Occurrence

$[***]  General Aggregate.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 25 -

--------------------------------------------------------------------------------

 

 

 

(ii)

The insurance must be maintained at all times during this Agreement and for a
minimum period of two years after this Agreement is terminated, and each Party
must continue to provide evidence of such coverage to the other Party on an
annual basis during that period. In addition:

 

 

(a)

The coverage afforded under any insurance policy a Party obtains must be primary
to any valid and collectible insurance that the other Party may carry; any
insurance policies issued to the other Party shall only apply, if at all, as
excess insurance. 

 

 

(b)

Any insurance policy a Party obtains must provide that at least 30 days prior
written notice shall be given to the other Party in the event of any material
change, cancellation or expiration of the coverage under the policy.

 

 

(c)

A Party must deliver to the other Party, within 10 days after the date the Party
executes this Agreement, copies of all insurance policies required to be
procured by the Party under this Agreement.  If any insurance required under
this Agreement expires or is replaced, the Party must supply the other Party
with declarations pages, mandatory riders and endorsements listing the other
Party as an additional insured and evidencing the continuation of all required
coverages.  The other Party’s failure to receive copies of the insurance
policies required under Section X.E(ii) above, or to demand such copies before
the other Party begins work, shall not be construed as the other Party’s waiver
of the first Party’s obligations to obtain the required insurance.

 

 

(d)

If a Party or its insurer(s) make(s) any payment toward any loss covered under
any policy of insurance that the other Party is required to procure under this
Agreement, the Party’s insurer(s) shall be subrogated to all of the other
Party’s rights of recovery against any person or organization including, but not
limited to, the other Party’s insurer(s), and the other Party must execute and
deliver all papers and anything else that is necessary to secure those rights.

 

 

F.

The Parties will cooperate fully with each other with respect to any mandatory
safety related formal recall of any Product ordered by, or in consultation with,
any regulatory authority. In the event of any such recall, replacement or field
corrective action resulting from a product defect in any Related Project
Component, Greatbatch will repair or replace such defective Related Project
Component at its own cost and expense.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 26 -

--------------------------------------------------------------------------------

 

 

XI.           CONFIDENTIALITY

 

 

A.

Identification of Confidential Information. Confidential Information provided by
one Party (as applicable, the “disclosing party”) to any other Party (as
applicable, the “receiving party”) and entitled to protection under this
Agreement shall be identified as such by appropriate markings on any documents
exchanged. If the disclosing party provides information other than in written
form, such information shall be considered Confidential Information only if (i)
the information by its nature would reasonably be considered of a confidential
nature or if the receiving party, due to the context in which the information
was disclosed, should have reasonably known it to be confidential, and (ii)
either the disclosing party gives written notice within thirty (30) days of
disclosure that such information is to remain confidential or the disclosing
party had previously confirmed in writing that such information was
confidential.

 

 

B.

Protection of Confidential Information. Each Party acknowledges that the other
Party claims its Trade Secrets and other Confidential Information as special,
valuable and unique assets. During the Restricted Period (as defined below) for
itself and on behalf of its officers, directors, agents, and employees, each
Party agrees to the following:

 

 

(i)

The receiving party will not disclose any Confidential Information to any third
party or disclose to an employee unless such third party or employee has a need
to know such Confidential Information in order to enable the disclosing party to
exercise its rights or perform its obligations under this Agreement and such
third party or employee is subject in writing to substantially the same
confidentiality obligations as the Parties. The receiving party will use the
Confidential Information only for the purposes of exercising its rights or
fulfilling its obligations under this Agreement and will not otherwise use it
for its own benefit. In no event shall the receiving party use less than the
same degree of care to protect the Confidential Information as it would employ
with respect to its own information of like importance which it does not desire
to have published or disseminated.

 

 

(ii)

If the receiving party faces legal action or is subject to legal proceedings
requiring disclosure of Confidential Information, then, prior to disclosing any
such Confidential Information, the receiving party shall promptly notify the
disclosing party and, upon the disclosing party’s request, shall cooperate with
the disclosing party in contesting such request or in obtaining a protective
order or other similar injunctive relief.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 27 -

--------------------------------------------------------------------------------

 

 

 

(iii)

The Parties acknowledge that monetary damages may not be sufficient remedy for a
breach of obligation of confidentiality in this Agreement and agree that each
Party shall be entitled to seek appropriate equitable remedies, including
injunctive relief, to prevent the unauthorized use or disclosure of any
Confidential Information.

 

 

(iv)

For purposes hereof, the term “Restricted Period” means (a) in the case of the
Trade Secrets of a disclosing party, in perpetuity; and (b) in the case of other
Confidential Information of a disclosing party, during the term of this
Agreement and for five years thereafter.

 

 

C.

Return of Confidential Information. All information furnished under this
Agreement shall remain the property of the disclosing party and shall be
returned to it or destroyed or purged promptly as its request upon termination
of this Agreement; provided, however, that (i) QiG Group may retain Confidential
Information of Greatbatch as reasonably necessary for QiG Group to be able to
complete the use of Relevant Project Components on order or in inventory at the
time of termination and to support Relevant Project Components already used by
QiG Group in the Products, and (ii) Greatbatch may retain Confidential
Information of QiG Group as reasonably necessary to fulfill its obligations
under this Agreement. All documents, memoranda, notes and other tangible
embodiments whatsoever prepared by the receiving party based on or which
includes Confidential Information shall be destroyed to the extent necessary to
remove all such Confidential Information upon the disclosing party’s request. An
authorized officer of the receiving party shall, upon written request of the
disclosing party, certify all destruction under this Section XI.C in writing to
the disclosing party.

 

 

D.

Limitations. The confidentiality obligations in this Article XI shall not apply
to disclosed information which the receiving party can prove: (a) was already
part of the public domain at the time of the disclosure by the disclosing party;
(b) becomes part of the public domain through no fault of the receiving party
(but only after and only to the extent that it is published or otherwise becomes
part of the public domain); (c) was in the receiving party’s possession prior to
the disclosure by the disclosing party and was not acquired, directly, or
indirectly, from the disclosing party or from a third party who was under a
continuing obligation of confidence to the disclosing party; (d) is received
(after the disclosure by the disclosing party) by the receiving party from a
third party who did not require the receiving party to hold it in confidence and
did not acquire it directly or indirectly, from the disclosing party under a
continuing obligation of confidence; or (e) is disclosed by the receiving party
pursuant to judicial compulsion, provided that the receiving party uses
reasonable effort to notify the disclosing party at the time such judicial
action is initiated.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 28 -

--------------------------------------------------------------------------------

 

 

 

E.

Public Announcements. Notwithstanding anything to the contrary contained in this
Agreement, neither Party may initiate or make any public announcement or other
disclosure concerning the terms and conditions or the subject matter of this
Agreement to any third party without the prior written approval of the other
Party except as may be required by law. In those circumstances where either
Party believes that any such disclosure is required by law, it shall (i) notify
the other Party on a timely basis in advance, and (ii) use its best efforts to
seek confidential treatment of the material provisions of this Agreement to the
greatest extent permitted by law.

 

XII.          INTELLECTUAL PROPERTY

 

 

A.

Background Intellectual Property. All Intellectual Property of QiG Group first
conceived and reduced to practice either prior to the Effective Date or
independent of performance of this Agreement will remain the exclusive property
of QiG Group. All Intellectual Property of Greatbatch first conceived and
reduced to practice either prior to the Effective Date or independent of
performance of this Agreement will remain the exclusive property of Greatbatch.

 

 

B.

Ownership of Newly Created Intellectual Property.

 

 

(i)

All Intellectual Property developed solely by a Party or acquired from a third
party by a Party during the Term, whether in connection with this Agreement or
otherwise, (“Improvements”) will be owned solely by such Party.

 

 

(ii)

The Parties agree that:

 

 

(a)

Any Intellectual Property resulting from the joint contributions of Greatbatch
and QiG Group personnel or contractors during the Term will be “Joint IP”. For
purposes hereof, the sole standard for establishing whether or not any
Intellectual Property is Joint IP will be that if the Intellectual Property in
question were going to be patented under the laws of the United States (whether
patentable or not), an employee of each Party would be required to be named as
an inventor in order for the patent to be legally valid and enforceable. All
Joint IP will be owned jointly by the Parties. Joint IP will be subject to all
of the terms and conditions of this Agreement. There will be no duty to account
to the other Party for any use, sale or license of any Joint IP owned jointly by
the Parties. Each Party will execute, and will cause its employees and
contractors and its Affiliates’ employees and contractors to execute, such
assignments as may be necessary or advisable under law to effectuate the intent
of this Section XII.B.(ii).

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 29 -

--------------------------------------------------------------------------------

 

 

 

(b)

To the extent that any right, title or interest in or to any Intellectual
Property vests in a Party, by operation of Legal Requirement or otherwise, in a
manner contrary to the agreed upon ownership as set forth in this Agreement,
such Party shall, and hereby does, irrevocably assign to the other Party any and
all such right, title and interest in and to such Intellectual Property to the
other Party, in a manner consistent with this Agreement without the need for any
further action by any Party.

 

 

(c)

Each Party will be solely responsible for determining whether to file and
prosecute any patent application for any of its exclusively owned Intellectual
Property, including, but not limited to, existing Intellectual Property, in any
jurisdiction, paying all legal expenses, filing fees and maintenance fees
relating thereto, and for determining whether and when to enforce its rights in
any such Intellectual Property..

 

 

(d)

The Parties shall jointly determine whether or not to file and prosecute a
patent application for any Resultant Patents covering Joint IP, and, if so, in
which jurisdictions and for how long. Greatbatch shall be entitled to propose
patent counsel for any such application and patent prosecution, subject to QiG
Group’s approval which shall not be unreasonably withheld. All legal expenses,
filing fees and maintenance fees for all Resultant Patents shall be shared
equally both during the Term and after the termination of this Agreement for
Joint IP. After termination of this Agreement, if a Party no longer desires to
contribute to the fees or expenses for any Resultant Patent that is jointly
owned, it shall notify the other Party on a timely basis, who shall have the
option to elect to maintain such patent. In such event, the Party desiring not
to pay fees or expenses shall assign such patent to the other Party and have no
right to make, use or sell a product covered by a Resultant Patent.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 30 -

--------------------------------------------------------------------------------

 

 

 

(e)

Each Party shall promptly notify the other Party of any infringement or
threatened infringement of any Joint IP, including, but not limited to, a
Resultant Patent. During the Term, the Parties shall determine what enforcement
actions are appropriate with respect to jointly owned, Joint IP and shall
cooperate with respect thereto. After the termination of this Agreement, each
Party may enforce its rights to any jointly owned, Joint IP, and agrees and
consents to be named by the other Party as a nominal party plaintiff in
connection therewith.

 

 

(f)

The provisions governing Joint IP set forth in this Article XII shall survive
the expiration or termination of this Agreement.

 

XIII.         MISCELLANEOUS:

 

 

A.

No Waiver. The failure of any Party to enforce at any time or for any period any
of the provisions of this Agreement shall not be construed to be waiver of those
provisions or of the right of that Party thereafter to enforce each and every
provision hereof.

 

 

B.

Assignment. This Agreement shall be binding upon, and shall inure to the benefit
of, the Parties’ respective successors and permitted assigns. This Agreement
shall not be assignable by any Party without the prior written consent of the
other Party; provided, however, that, upon thirty (30) days’ prior written
notice to the other Party but without the other Party’s prior consent, a Party
(i) may assign this Agreement, in whole or in part, to any of its Affiliates
provided that the assigning Party shall remain primarily liable under this
Agreement and/or (ii) shall assign this Agreement to the successor to such Party
in connection with a Change of Control of such Party provided that such
successor, in the reasonable judgment of the other Party, is able to perform the
assigning Party’s obligations under this Agreement.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 31 -

--------------------------------------------------------------------------------

 

 

 

C.

Notices. Unless otherwise provided in this Agreement, any notice to be given
hereunder shall be in writing and (a) delivered personally (to be effective when
so delivered), (b) mailed by registered or certified mail, return receipt
requested (to be effective four days after the date it is mailed) or (c) sent by
Federal Express or other overnight courier service (to be effective when
received by the addressee), to the following addresses (or to such other
addresses which any Party shall designate in writing to the other Party):

 

If to Greatbatch:

 

   Greatbatch Ltd.

   10000 Wehrle Drive

   Clarence, NY 14031

   Attention: General Counsel

 

If to QiG Group:

 

   QiG Group LLC

  5830 Granite Parkway, Suite 1100

   Plano, Texas, 75024

   Attention: Chief Executive Officer

 

 

D.

Routine Communication. Notwithstanding the provisions of Section XIII.C, routine
communications may be sent by first-class mail, postage prepaid.

 

 

E.

Successors and Assigns. This Agreement is binding on and inures to the benefit
of the Parties and their respective permitted successors and permitted assigns.

 

 

F.

Injunctive Relief. The Parties hereto agree that irreparable harm would occur in
the event that any of the agreements or provisions of this Agreement were not
performed fully by the Parties hereto in accordance with their specific terms or
conditions or were otherwise breached, and that money damages are an inadequate
remedy for breach of the Agreement because of the difficulty of ascertaining and
quantifying the amount of damage that will be suffered by the Parties hereto in
the event that this Agreement is not performed in accordance with its terms or
conditions or is otherwise breached. It is accordingly hereby agreed that the
Parties hereto shall be entitled to seek an injunction or injunctions, without
the necessity of proving actual damages, to restrain, enjoin and prevent
breaches of this Agreement by the other Parties and to enforce specifically the
terms and provisions of this Agreement in any court of the United States or any
state having jurisdiction, such remedy being in addition to, and not in lieu of,
any other rights and remedies to which the other Parties are entitled to at law
or in equity.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 32 -

--------------------------------------------------------------------------------

 

 

 

G.

Governing Law. This Agreement shall be construed in accordance with and governed
by the laws of the State of New York, without giving effect to the provisions,
policies or principles thereof relating to choice or conflict of laws.

 

 

H.

Waiver of Jury Trial. Each Party acknowledges and agrees that any controversy
that may arise under this Agreement, including any appendices attached to this
Agreement, is likely to involve complicated and difficult issues and, therefore,
each such Party irrevocably and unconditionally waives any right it may have to
a trial by jury in respect of any legal action arising out of or relating to
this Agreement, including any appendices attached to this Agreement, or the
transactions contemplated hereby.

 

 

I.

No Third-Party Beneficiaries. This Agreement benefits solely the Parties to this
Agreement and their respective permitted successors and permitted assigns and
nothing in this Agreement, express or implied, confers on any other Person any
legal or equitable right, benefit or remedy of any nature whatsoever under or by
reason of this Agreement.

 

 

J.

Titles of Sections. The section and other headings contained in this Agreement
are for reference purposes only and shall not affect the meaning or
interpretation of this Agreement.

 

 

K.

Entire Agreement. This Agreement constitutes the entire agreement among the
Parties hereto with respect to the subject matter hereof, and supersedes any
prior agreement or understanding among the Parties hereto with respect to the
subject matter hereof. Except as provided otherwise herein, this Agreement may
not be amended nor may any rights hereunder be waived except by an instrument in
writing signed by the Party sought to be charged with such amendment or waiver.
The recitals hereto are true and correct, and are part of this Agreement.

 

 

L.

Counterparts. This Agreement may be executed either directly or by an
attorney-in-fact, in any number of counterparts of the signature pages, each of
which shall be considered an original. Facsimile or pdf transmission of an
executed counterpart of this Agreement shall be deemed to constitute due and
sufficient delivery of such counterpart, and such facsimile or pdf signatures
shall be deemed original signatures for purposes of enforcement and construction
of this Agreement.

 

 

M.

Separability. Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective
to the extent of such prohibition or unenforceability without invalidating the
remaining portions hereof or affecting the validity or enforceability of such
provision in any other jurisdiction.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 33 -

--------------------------------------------------------------------------------

 

 

 

N.

Purchases Prior to Effective Date. While this Agreement is being executed as of
the Effective Date, the Parties agree that the terms of this Agreement,
including, without limitation, Article X hereof, shall apply to all Relevant
Project Components sold by Greatbatch to QiG Group prior to the Effective Date.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 
- 34 -

--------------------------------------------------------------------------------

 

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed
by their authorized representatives.

 

 

QiG Group, LLC

Greatbatch Ltd.

 

 

 

 

By:  /s/ Scott F. Drees   By:  /s/ Thomas J. Hook   Title: CEO   Title: CEO  

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

--------------------------------------------------------------------------------

 

 

LIST OF APPENDICES

 

 

 

Appendix A     -     Description of Relevant Project Components and
Specifications

 

Appendix B     -     Prices

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

--------------------------------------------------------------------------------

 

 

APPENDIX A

TO SUPPLY AGREEMENT

 

Description of Relevant Project Components and Specifications

 

Implantables

 

Greatbatch

US Number

Greatbatch

OUS

Number

QiG

Model

Number

QiG

Catalogue

Number

Specification

Specification

Revision

Device Description

Geography

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

--------------------------------------------------------------------------------

 

 

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

--------------------------------------------------------------------------------

 

 

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

--------------------------------------------------------------------------------

 

 

Accessories

 

Greatbatch

US Number

Greatbatch

OUS

Number

QiG

Model

Number

QiG

Catalogue

Number

Specification

Specification

Revision

Device

Description

Geography

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

--------------------------------------------------------------------------------

 

 

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

 

* Models 5600, 5410, 5301, 5311, 5401, 5420, 5530, 5501, 5511, 5520-45, 5520-60,
5520-75, 5520-90, 5526-45, and 5526-60  have not transferred from Development
(QiG) to Production (PLY)

 

** Catalogue rev 1.9 indicates models 5410 and 5500 are Obsolete, but items have
forecasted volumes in forecast dated
11NOV2015                                   

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

--------------------------------------------------------------------------------

 

 

External Devices***

 

Greatbatch

US

Number

Greatbatch

OUS

Number

QiG

Model

Number

QiG

Catalogue

Number

Specification

Specification

Revision

Device

Description

Geography

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

[***]

***External Devices are currently manufactured by Minnetronix               

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

--------------------------------------------------------------------------------

 

 

APPENDIX B

TO SUPPLY AGREEMENT

 

Prices

 

IPG Pricing

 

Annual Volume

2016

2017

2018

2019

2020

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

 [***]+ 

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

 

The parties hereby acknowledge and agree that they will be negotiating in good
faith an amendment to this Agreement to add the Pelvistim product line to this
Agreement (the “Pelvistim Amendment”). The parties hereby agree that so long as
the specifications of the Pelvistim IPG are materially and substantially similar
to the Specifications of the Algovita IPG (with the exception of the firmware),
the price for the Pelvistim IPG will be [***] as the Algovita IPG pricing set
forth above; provided, that in the event that the specifications of the
Pelvistim IPG are not materially and substantially similar to the Specifications
of the Algovita IPG (with the exception of the firmware), the parties will
negotiate in good faith an adjustment to the price of the Pelvistim IPG. For
purposes of calculating the annual volumes above, the total quantities of the
Algovita IPGs and the Pelvistim IPGs purchased and delivered in the relevant
calendar year shall be combined.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

--------------------------------------------------------------------------------

 

 

Leads/Extensions Pricing

  

Annual Volume

2016

2017

2018

2019

2020

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]+

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

 

The parties hereby agree that the price for the Pelvistim Leads/Extensions with
the specifications set forth in that certain [***] (the “Pelvistim
Lead/Extension Specifications”) will [***] the Algovita Leads/Extensions pricing
set forth above; provided, that in the event that the Pelvistim Lead/Extension
Specifications materially change prior to the execution of the Pelvistim
Amendment, the parties will negotiate in good faith an adjustment to the price
of the Pelvistim Leads/Extensions. For purposes of calculating the annual
volumes above, the total quantities of the Algovita Leads/Extensions and the
Pelvistim Leads/Extensions purchased and delivered in the relevant calendar year
shall be combined.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

--------------------------------------------------------------------------------

 

 

Minnetronix Externals Pricing

 

ALL VOLUMES/ALL YEARS

PPC

$[***] 

POP

$[***] 

Clinician Programmers

$[***] 

Patient Feedback Tool

$[***] 

EPG

$[***] 

Charging Paddle

$[***] 

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

--------------------------------------------------------------------------------

 

 

GMM Externals Pricing

 

 

PPC

Annual Volume

2016

2017

2018

2019

2020

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]+

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

 

 

POP

Annual Volume

2016

2017

2018

2019

2020

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

[***]+

$[***] 

$[***] 

$[***] 

$[***] 

$[***] 

 

ALL VOLUMES/ALL YEARS

Clinician Programmers

$[***] 

Patient Feedback Tool

$[***] 

EPG

$[***] 

Charging Paddle

$[***] 

 

The parties hereby agree that so long as the specifications of the Pelvistim EPG
are materially and substantially similar to the Specifications of the Algovita
EPG (with the exception of the firmware), the price for the Pelvistim EPG will
be [***] as the Algovita EPG pricing set forth above; provided, that in the
event that the specifications of the Pelvistim EPG are not materially and
substantially similar to the Specifications of the Algovita EPG (with the
exception of the firmware), the parties will negotiate in good faith an
adjustment to the price of the Pelvistim EPG. The parties hereby agree that so
long as the specifications of the Pelvistim externals (other than the Pelvistim
EPG) are materially and substantially similar to the Specifications of the
Algovita externals (with the exception of the software for such externals), the
price for the Pelvistim externals will be [***] as the Algovita externals
pricing set forth above; provided, that in the event that the specifications of
the Pelvistim externals (other than the Pelvistim EPG) are not materially and
substantially similar to the Specifications of the Algovita externals (with the
exception of the software for such externals), the parties will negotiate in
good faith an adjustment to the price of the Pelvistim externals. For purposes
of calculating the annual volumes above, the total quantities of the Algovita
externals and the Pelvistim externals purchased and delivered in the relevant
calendar year shall be combined.

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

 

--------------------------------------------------------------------------------

 

 

Purchased Components Pricing

 

ALL VOLUMES/ALL YEARS

Cable

$[***] 

Tunneling Tool

$[***] 

 

 

Accessories

Price

Anchor (Box of [***]) 5400

$[***] 

Torque Wrench(Box [***]) 5500

$[***] 

Port Plug(Box [***]) 5510

$[***] 

Needle (St) [***] ea 5300

$[***] 

Needle (Lng) [***] ea 5310

$[***] 

Passing Elevator 5600

$[***] 

Adhesive Anchor 5410

$[***] 

Magnet 4900

$[***] 

Adhesive Patches 4240

$[***] 

Adjustable Belt 4220

$[***] 

Prog. Power Cord 4010

$[***] 

Trial Stim Pouch 4320

$[***] 

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR PORTIONS OF THIS EXHIBIT. THE COPY
FILED HEREWITH OMITS THE INFORMATION SUBJECT TO A CONFIDENTIALITY REQUEST.
OMISSIONS ARE DESIGNATED WITH [***]. A COMPLETE VERSION OF THIS EXHIBIT HAS BEEN
FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.