Document:

Exhibit

CONTRACT MANUFACTURING SERVICE AGREEMENT
This Agreement, dated and effective as of 2012/11/06 (“Effective Date”) is between Miramar Labs, Inc., a corporation located at 445 Indio Way, Sunnyvale, CA 94085, USA, the Manufacturer (“MFR”), and Healthcare Technology International Limited, located at 15/F, Block B, Veristrong Industrial Centre, 36 Au Pui Wan Street, Fotan, Hong Kong, the Contract Manufacturer (“CM”).
Whereas MFR has expertise in designing and marketing of devices as Manufacturer; CM has expertise in tool making, plastic part molding and electronic product assembly.  CM is offering contract manufacturing service to MFR to manufacture the miraDry bioTip (sterile disposable dermatologic treatment accessory) subassembly (“Product”) under the following terms.
		
	1.
	Scope

		
	1.1.
	This Agreement applies to all Purchase Orders issued by MFR to CM.

		
	1.2.
	This Agreement also applies to all products provided by CM to MFR.

		
	2.
	Product Design

		
	2.1.
	CM will manufacture the Product in accordance to the specifications provided by MFR (see Addendum C).  MFR will maintain the Design History File and all associated documents (input, output, design FMEA, verification, and validation).  Copies of relevant Design History File documentation will be provided to CM upon project commencement.  The original Design History File will be maintained by MFR.

		
	2.2.
	MFR shall inspect samples from each pilot lot in accordance with the incoming inspection criteria specified in Addendum C and provide inspection report to CM within 5 business days after receipt.

		
	2.3.
	The CM is not allowed to make any modification to the Product that would cause it to be non‐conformant to the specifications or design, including but not limited to modifications that affect external appearance, functionality, regulatory approbation or performance, changes in components, materials, sub‐suppliers, engineering or production process, or manufacturing location without MFR’s written consent.  MFR’s written consent to changes may include effective date and or implementation timeline.

		
	2.4.
	CM will obtain MFR’s written approval on all proposed design changes.

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[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

		
	3.
	Quality & Regulatory

		
	3.1.
	Quality System Requirements

		
	3.1.1.
	CM will maintain an FDA registered facility and ISO 13485 quality system certified by a Notified Body or CMDCAS Registrar for the manufacture of Products.

		
	3.1.2.
	MFR shall evaluate Supplier’s quality system to initially qualify CM and at appropriate intervals to ensure continued suitability.  Evaluations include review of CM’ s documented procedures, quality system records and on-site audits/inspections relevant to this Agreement.

		
	3.1.3.
	MFR shall re‐evaluate CM’ s quality system at least once annually through a written quality survey and conduct on-site audits at least once every 3 years.  MFR reserves the right to evaluate the CM’s quality system and operations, including on-site audits/inspections relevant to MFR’s Product at any time during CM’s normal business hours, with 7 calendar days of prior notice.

		
	3.1.4.
	CM shall address any deficiencies identified during evaluations in a timeline approved by the MFR.

		
	3.1.5.
	MFR will provide the Quality regulation before tooling and quality specification, specimen, special purpose test equipment for prototype, and functional prototypes to CM for building engineering samples, engineering pilot, production pilot (PP) and mass production.  Both parties review PP statistics after corrective and preventive actions to agree on quality specification and counter-sign marginal specimens to govern outgoing quality and internal cost of mass production.

		
	3.2.
	Quality Control

		
	3.2.1.
	CM will manufacture Products in an ISO Class 8 compliant controlled environment to minimize Product exposure to airborne particulates.  CM shall establish and maintain procedures including maintenance, adjustment, and inspection procedures to adequately control conditions to minimize risk of Product exposure to particulates and bioburden in a manner acceptable to MFR and compliant with ISO 14644‐1: 1999, Cleanrooms and associated controlled environments – Part 1: 

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Classification of air cleanliness; ISO 14644‐2: 2000, Part 2; Specifications for testing and monitoring to prove continued compliance with ISO 14644‐1; ISO 14644‐3: 2005, Part 3: Test methods; ISO 14644‐5: 2004, Part 5: Operations, and 14698‐1:2003 Cleanrooms and associated controlled environments – Biocontamination control, Part 1 – General principles and methods.  Initial environmental specifications include temperature and humidity, and any subsequent changes must be approved in writing by MFR.
		
	3.2.2.
	CM shall establish and maintain requirements for the health, cleanliness, personal practices, and clothing of personnel to minimize Product exposure to particulates and bioburden and adequately control contact between personnel and Product.

		
	3.2.3.
	In accordance with ISO 13485, CM will allow MFR audits and random process and Product inspections to evaluate CM processes and verify Product conformance.  MFR reserves the right to conduct audits during CM’s normal work hours with 7 calendar days of prior notice.  CM shall, either upon request by MFR or in the normal course of business, carry out similar audits to their suppliers.

		
	3.2.4.

	CM shall address any non‐conformances to FDA regulations, ISO requirements or this agreement identified during MFR audits in a timeline approved in writing by the MFR.

		
	3.3.
	Incoming Inspection

		
	3.3.1.
	MFR shall inspect Product in accordance with the incoming inspection criteria specified in Addendum C.

		
	3.3.2.
	MFR shall notify CM and provide defect statistics and samples within 10 business days after determining that a lot has failed incoming inspection.

		
	3.3.3.
	In the event of a disagreement between MFR and CM, a mutually agreed upon third party investigator shall be utilized.  The expense for this service shall be paid by the party determined to be at fault by the investigator.

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[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

		
	3.4.
	Remedies for Defective Product

		
	3.4.1.
	The CM shall remedy defective goods as soon as possible, but not to exceed 30 calendar days after confirmation of defect.  If requested by CM, MFR shall return defective Product to CM at CM’s cost.

		
	3.5.
	Regulatory Inspection

		
	3.5.1.
	MFR shall be solely responsible for all contacts and communications with the FDA and other Governmental Authorities with respect to all matters relating to the Product and regulatory approvals.  The MFR and CM shall coordinate activities necessary to ensure ongoing readiness for regulatory inspections pertaining to Products or the services provided hereunder by CM.

		
	3.5.2.
	CM shall notify MFR and provide MFR with copies of any notices or communications of any inspection, investigation, inquiry, regulatory action, or other material Governmental notice or communication by or from the FDA or other Governmental Authorities relating to the Product or the services provided hereunder promptly, but in no case later than 3 business days after CM becomes aware of such notices or communications.  MFR shall have the right to be present at and to participate in any such inspection or other regulatory action with respect to the Product.  CM shall provide MFR with copies of any inspection; findings or observations and any other documentation received by CM from the FDA or any other Governmental Authority, including, without limitation, any FDA Form 483 or Warning Letters up to the condition allowed by law.  CM shall provide any proposed response thereto 3 business days prior to required response for MFR’s review and approval prior to submission.  No such responses shall include any false or misleading information with respect to the Product or MFR.

		
	3.5.3.
	CM shall provide immediate notice to MFR upon notice of debarment, suspension, or other regulatory restriction on their ability to provide services contemplated hereunder.

		
	3.5.4.

	To the extent MFR determines it necessary for regulatory 

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compliance, CM shall grant MFR full access to CM’s Master File and all other manufacturing and shipment records associated with MFR.
		
	3.6.
	Records for Lot Traceability

		
	3.6.1.
	CM will maintain the Device History Record (“DHR”).  A copy of the DHR for each production lot will be provided to MFR for final review and product release.  The DHR will contain the following:

		
	a)
	Lot number and Quantity released for Shipment

		
	b)
	Certificate of Compliance (C of C) showing product release authorization

		
	c)
	Label Records including Label Line Clearance Form

		
	d)
	Device History Records including Router Sheets (work order) and Production Records including Test and Inspection data as requested in writing by MFR and Component Traceability information as requested in writing by MFR

		
	e)
	Final Inspection Record including Completed Inspection Forms

		
	f)
	Shipping Documents

		
	g)
	All Non-Conforming Material Reports

		
	3.6.2.
	CM will maintain all Records for a period of seven (7) years or forward original records to MFR upon request by MFR.  CM will notify MFR at least 30 days prior to destroying any records and will not destroy such records without approval from MFR.  

		
	3.7.
	Change Control

		
	3.7.1.
	CM will have the primary role in designing processes to carry out the terms of this Agreement and shall maintain all associated documents, including, without limitation, the DHR, MFR related drawings, the Device Specifications, test specifications and procedures, process FMEA, process verification, process validation and all other documents required to 

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maintain full compliance with the terms of this Agreement (“Records”).  All such records shall be confidential to and the sole property of MFR.  MFR will review and approve process changes proposed by CM prior to implementation.
		
	3.7.2.
	CM will maintain a specification and revision control system for all MFR related drawings.  CM will obtain prior written approval by MFR for any changes to Device Specification.  CM will generate and maintain the Device Master Records (“DMRs”) for the devices and provide copies of such DMRs to MFR within ten (10) calendar days after request.

		
	3.7.3.

	CM will maintain the specifications and procedures for test methods developed by MFR.  CM shall obtain MFR’s written approval for any changes in MFR’s specifications, procedures or methods.  CM shall validate all test methods used on Devices and provide MFR with written proof of such validation, including validation data collected, within ten (10) calendar days of MFR’s request for such proof.

		
	3.8.
	Regulatory Reporting Obligations

		
	3.8.1.
	MFR shall be solely responsible for (i) receiving all Product complaints and reports of Product adverse events and malfunctions, and all communications with complainants and provide appropriate information to CM; and (ii) filing all required regulatory reports for the Product or the Regulatory Approvals, including, without limitation, any medical device reports or other adverse event reports relating to the Product.

		
	3.8.2.
	CM shall provide information regarding any complaints, reports of adverse events or malfunctions relating to the Product due to manufacturing fault to MFR within 5 business days of receipt.

		
	3.8.3.
	When requested by MFR, CM will conduct complaint investigations for the Product manufactured by CM (including investigation of products or services purchased by CM for use in MFR’s Product) and will follow‐up as soon as possible, but no later than twenty-one (21) calendar days.  CM will respond to requests for corrective action in writing as soon as possible 

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after receipt, but within fourteen (14) calendar days of request.  Responses to Corrective Actions shall address the following:
		
	a)
	Root cause of nonconformity

		
	b)
	Correction required to address existing nonconformities

		
	c)
	Corrective action plan to prevent recurrence of nonconformities

		
	d)
	Implementation timeline (correction and corrective action)

		
	e)
	Effectiveness check of corrective action

		
	3.9.
	Quality Reports

		
	3.9.1.
	CM shall provide a report to MFR on a monthly basis containing mutually agreed upon quality information and metrics.  The report shall be provided no later than the 10th calendar day of each month with information current to the last calendar day of the preceding month.

		
	3.10.
	Approved Supplier List

		
	3.10.1.
	CM will maintain an Approved Supplier List.  Approved suppliers will be selected and qualified under the CM’s supplier management process, compliant with FDA QSR and ISO 13485 requirements.  Suppliers providing products or services used in MFR’s Product must be approved in writing by MFR.

		
	3.10.2.
	CM will have purchasing authority for all materials and services associated with materials used in the production of the Product.  CM will maintain appropriate procedures in accordance with applicable ISO and QSR regulations, including component identification and traceability.  CM will only purchase products and services used in MFR’s Products from suppliers on the Approved Supplier List.

		
	4.
	Tooling and Equipment

		
	4.1.
	A list of tooling and equipment (including fixtures) needed to manufacture the MFR’s Product is listed in Addendum A.  The list distinguishes between items being consigned to CM by MFR free of charge, and items to be developed by CM per quotation and Purchase Order.  All tooling and equipment developed for the manufacture and testing of MFR’s Products shall be the sole and exclusive 

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property of MFR.  Addendum A may be modified by mutual consent of CM and MFR to add or remove items as necessary.
		
	4.2.
	Any costs associated with Product design changes requiring modifications to any of the items listed in Addendum A shall be agreed to in writing and paid by MFR.

		
	4.3.
	Tooling and equipment to be developed by CM shall be quoted with the following minimum payment terms:

		
	a)

	Up front deposit of 50% of tooling and development cost plus 100% of equipment and fixture cost

		
	b)

	2nd progress payment of 30% of tooling and development cost

		
	c)

	Balance payment of remaining 20% of tooling and development cost

		
	4.4.
	Maintenance and Calibration

		
	4.4.5.
	CM assures all tooling and equipment used in the manufacture and test of MFR Product shall be maintained fit for production at all times in good working order and under calibration control if it is determined necessary by both parties.

		
	4.4.6.
	CM shall ensure all inspection, measuring, and test equipment is suitable for its intended purposes and is capable of producing valid results.  Suitability includes limits for accuracy and precision.  CM shall establish and maintain schedules for the calibration and preventive maintenance in accordance with the manufacturer’s recommendations.  Calibration standards shall be traceable to recognized standards.

		
	4.4.7.
	MFR shall specify maintenance and calibration schedule to CM for MFR owned tooling and equipment and shall pay for associated costs.  Payment terms to be agreed to in writing by CM and MFR.

		
	4.4.8.
	CM owned tools, furniture, and processing equipment shall be maintained and calibrated by CM at their own cost.

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	4.4.9.
	Consumable items used in the manufacture of the Product are the responsibility of CM.

		
	4.5.
	Disposition

		
	4.5.3.
	For any MFR owned tooling or equipment which has not been utilized in the manufacture of Product within the past 12 months, CM shall notify MFR that the tooling or equipment shall be withdrawn from service.  MFR shall have 30 calendar days from this notice to tell CM what to do with the tooling and equipment.  CM shall provide options for disposition and costs.  Tooling or equipment returned to MFR will be shipped at MFR’s cost.

		
	5.
	Forecast and Ordering

		
	5.1.
	MFR will use its commercially reasonable efforts to provide CM with a 12 month rolling non-binding forecast of its intended purchases and requested deliveries.  This non-binding forecast will be updated quarterly with subsequent updates as needed.  Such forecast will be for used for planning purposes only and will in no way create an obligation on MFR’s part to purchase Product.

		
	5.2.
	CM will use provided forecast to plan their capacity and advise MFR of long lead materials, capital requirements such as tooling and resources needed to support the plan.  MFR may choose to purchase specific long lead materials to support the extended forecast, but will do so only with an expressly written Purchase Order (“P.O.”) for said material.  MFR will ensure that the amount of finished goods inventory, work in process, and raw materials (“Inventory”) is limited to that amount required to support the agreed upon lead times and Purchase Orders, unless otherwise agreed to by MFR purchase order.  The costs associated with any excess inventory not authorized in writing by MFR will be borne by CM.

		
	5.3.
	If and when MFR desires to commit to purchase a product or material, MFR shall issue a P.O. in written or electronic form describing the Product, identifying the product by MFR product number, specifying the quantity, price, delivery date, shipping and any other information required.  CM shall make its best efforts to accept each MFR P.O. unless such P.O. is inconsistent with applicable terms of this Agreement and will respond to MFR within 3 business days after receipt of the Purchase Order.  When written or electronic acknowledgment of receipt and 

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acceptance of a P.O. is made by CM, the P.O. shall be deemed a commitment to purchase and sell the specified Products pursuant to the applicable terms of this Agreement.  In the event of any conflict between the terms of this agreement and the terms of any P.O., the terms of this Agreement shall control.
		
	5.4.
	Upon acceptance of P.O., CM shall provide immediate notice to MFR if they are unable to deliver to the terms, either quantity or delivery date.

		
	5.5.
	The MFR shall have the option to defer delivery of all or part of any binding P.O. up to 2 months subject to written notice 30 calendar days before scheduled delivery.

		
	5.6.
	Cancellation notice

		
	5.6.4.

	CM shall periodically update MFR with order lead-time for long lead-time material and cancellation lead-time for those cancellable materials.

		
	5.7.
	Obsolete and Unused Material

		
	5.7.2.

	In the event of P.O. cancellation and design changes that result in obsolete material, the MFR agrees to pay for materials committed to in open Purchase Orders for raw material, work-in-process and finished goods, except to the extent that CM has a readily available use for such materials, for example they can be used for another customer.  CM will send an invoice for the cost of the obsolete material plus 10% material overhead charge to MFR.  MFR to pay invoice within 30 days.

		
	5.7.3.

	If material is unused for over 2 months and without open P.O. for product the material is used for, CM will send an invoice for the cost of the unused material plus 10% material overhead charge to MFR.  MFR to pay invoice within 30 days.  The unused material will be kept as MFR’s consigned material for deposition.

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	5.8.
	Stop Production Notice

		
	5.8.3.
	MFR may, in writing, direct CM to stop the production of Products during any stage of the manufacturing process (a “Stop Production Notice”).  MFR has the right to direct CM to prepare Products up through a particular level of the manufacturing process and to hold such partially completed Products pending resolutions to be implemented as a result of error correction activities.  If such a Stop Production Notice from MFR is not due to CM’ s negligence or failure to perform its obligations under this Agreement, MFR shall be responsible for the actual and reasonable costs of downtime and idle capacity charges incurred by CM resulting from a Stop Production Notice and for the actual and reasonable costs associated with the holding of partially completed Products and any required rework of Product.

		
	6.
	Logistics & Shipping

		
	6.1.
	CM will pack and package Product using agreed upon methods or best practices to protect the Product from deterioration or damage during processing, storage, handling, and shipment.

		
	6.2.

	Products manufactured under this agreement will be packaged with labeling that states “Manufactured for MIRAMAR LABS, Inc.” or equivalent.

		
	6.3.
	Delivery

		
	6.3.4.
	Delivery terms: FOB Hong Kong.

		
	6.3.5.
	CM shall quote a delivery date in writing upon acceptance of each Purchase Order from MFR.

		
	6.3.6.

	CM agrees to meet this delivery date within a tolerance of +/-10 business days for sea freight and +/-3 business days for airfreight.

		
	6.3.7.
	MFR shall specify the shipping method at least 2 weeks prior to the shipment date.

		
	6.3.8.
	In the event the CM is unable to ship Product in time for the agreed upon delivery date due to CM’s fault, then CM shall pay for the additional 

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incurred cost for expedited freight to make up delay for minimal urgent quantity requested by MFR and agreed to by CM.  CM’s liability is limited to less than 10% of the Product price of the portion of the shipment that is 31 or more days late according to CM’s confirmed schedule.
		
	6.3.9.
	CM shall deliver Product in accordance with the Delivery Date set forth in the relevant Purchase Order.  TIME IS OF THE ESSENCE IN MEETING THE REQUIREMENTS OF ALL PURCHASE ORDERS AND IN DELIVERY OF ALL PRODUCTS.

		
	6.3.10.
	If MFR requests to expedite a shipment of Product on CM’s confirmed schedule, CM is entitled to charge an expedite fee and will provide MFR a quotation for the fee.

		
	6.4.
	CM’s Export Documents (License(s))

		
	6.4.4.
	CM is responsible for obtaining and maintaining all export license(s) required for delivery of the Product to MFR under this Agreement to MFR’s designated location.

		
	6.4.5.
	CM shall issue all documentation that may be required by law or regulation regarding the export or re‐export of the Product to the MFR’s designated location.

		
	6.5.
	MFR’s Import Documents

		
	6.5.5.
	MFR is responsible for obtaining and maintaining any regulatory compliance and import license(s) required for delivery of the Product to MFR.

		
	6.5.6.
	CM shall reasonably cooperate with MFR to the extent required to sell the Product.

		
	7.
	Pricing and Credit Payment

		
	7.1.
	Initial pricing for Product is set forth in Addendum B.  The price(s) set forth in Addendum B shall be itemized to include the costs of materials, labor, overhead and profit.  When MFR places a P.O., CM will confirm price changes if costs exceed 3% of previous quote.  Both parties will review cost every 6 months.

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	7.2.
	The pricing shall be forecast for six (6) months and shall be updated by CM on a quarterly basis, or more frequently if requested in writing by MFR.  As volumes of Purchase Orders and experience with the Product increase, it is anticipated that the costs to supply Products will decline and, in connection with that decline, CM agrees to negotiate in good faith reductions to the initial price set forth in Addendum B.  If there are price increases in transportation, components or labor costs, MFR agrees to negotiate in good faith increases to the initial price set forth in Addendum B to reflect such additional costs.

		
	7.3.
	Any design change for the Products required by MFR shall be subject to mutual agreement of the parties on the effect of such design change on pricing of the Product.  If there is no agreement reached regarding pricing, MFR and CM each has the right to terminate this Agreement pursuant to Clause 8.1.

		
	7.4.
	Invoice & Payment

		
	7.4.7.
	MFR agrees to pay all invoices within 7 business days of receipt for Engineering and Tooling charges and Pilot Production shipments; and net 45 calendar days from date of invoice within bank credit limit.  For invoices exceeding credit limit, MFR agrees to pay 50% deposit upon placing order and the remaining balance before CM ships Product.

		
	7.5.
	Payment Reduction or Deferment

		
	7.5.4.
	No Set Off clause.  MFR agrees to settle valid payment according to Purchase Order terms for the delivery of finished goods and any counter claims shall be paid instead of offsetting by CM after agreement on responsibility.

		
	7.6.
	Currency & Taxes

		
	7.6.4.
	All money terms shall be in US Dollars.

		
	7.6.5.
	Payment to CM shall incur no tax withholding.  Provided, however, that payments shall be made in accordance with applicable law agreed to in Clause 22.

		
	7.7.
	Reimbursable Expenses

		
	7.7.1.
	MFR will reimburse CM only for expenses which are expressly authorized in this Agreement or authorized in writing by MFR prior to being incurred 

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by CM.  EXCEPT AS EXPRESSLY SET FORTH HEREIN, NO OTHER COSTS OR EXPENSES ARE REIMBURSABLE UNDER THIS AGREEMENT.
		
	7.8.
	CM must pay all refunds to MFR in full within 30 business days of receiving notice of MFR request for refund, provided that such refunds are justified under the terms of this Agreement.  Payment by refund will be either by credit towards MFR’ s payment, or by Telegraph Transfer, or by Electronic Funds Transfer, at sole discretion of MFR.

		
	8.
	Terms and Termination of Agreement

		
	8.1.
	The term of this Agreement shall commence on the Effective Date upon exchange of signed copies from both parties and remain in effect for at least 3 calendar years ending December 31st, and will renew automatically unless terminated by either party by giving following written notices to the other party:

		
	a)
	immediately if bankrupt, Insolvent; or

		
	b)
	immediately after failure to cure breach due to other than Force Majeure within 30 calendar days after written notice sent; or

		
	c)
	immediately after failure to cure breach due to Force Majeure within 60 calendar days after written notice sent; or

		
	d)
	at least six (6) months written notice in all other cases.

		
	8.2.
	If CM desires to terminate this agreement, CM agrees to accept and fulfill one end‐of‐life P.O. from MFR.

		
	8.3.
	Effects of Termination

		
	8.3.8.
	Obligations.  All obligations that accrued prior to the effective date of termination (including without limitation, payment obligations) shall survive termination.

		
	8.3.9.
	Return of Confidential Information.  Each party shall promptly destroy with certification of destruction or return to the other party all Confidential Information from the disclosing party.

		
	8.3.10.
	Survival.  The following provisions shall survive any termination of this Agreement: Clauses 9, 11, 12, 13, 14, 16, 17 and 23.

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	9.
	Notices

		
	9.1.
	All Notices must be made in writing and delivered personally, by courier, via registered mail with acknowledgement of receipt, or by electronic means with printed acknowledgement of receipt, and addressed:

		
	a)
	To the CM: 
 
Attn: Division General Manager 
Healthcare Technology International Limited 
15/F, Block B, Veristrong Industrial Centre 
36 Au Pui Wan Street  
Fotan, Hong Kong  
Fax: (852) 2343-7310

		
	b)
	To the MFR: 
 
Attn: Vice President of Manufacturing 
Miramar Labs, Inc.  
445 Indio Way 
Sunnyvale, CA 94085, USA 
Fax: 408-940-8795

		
	10.
	Insurance

		
	10.1.
	MFR shall maintain product liability insurance covering MFR and CM.  CM’s quotation excludes product liability insurance.

		
	11.
	Indemnification

		
	11.1.
	MFR Indemnification Obligations.  MFR shall indemnify, defend and hold CM harmless from and against any third party claims, losses, liabilities, damages, cost (including court or arbitration costs) and expense (collectively, “Losses”) incurred by CM as a result of (i) any defect in MFR’s design of the Product; (ii) any Intellectual Property (“IP”) infringement or product liability claim directly resulting from CM’s compliance with MFR’s Product specifications (Clause 2); (iii) a material breach by MFR of its representations, warranties, covenants or obligations under this Agreement, or (iv) any gross negligence or willful 

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misconduct of MFR, except Losses to the extent resulting from any action or inaction of CM for which CM is required to indemnify MFR pursuant to Clause 11.2 hereof.
		
	11.2.
	CM Indemnification Obligations.  CM shall indemnify, defend and hold MFR harmless from and against any third party Losses incurred by MFR as a result of (i) any failure of the Product to meet the Product specifications (Clause 2) or comply with MFR’s written instructions; (ii) CM’s violation of GMP or any other applicable Laws; (iii) a material breach by CM of its representations, warranties, covenants or obligations under this Agreement; or (iv) any gross negligence or willful misconduct of CM, except Losses to the extent resulting from any action or inaction of MFR for which MFR is required to indemnify CM pursuant to Section 11.1 hereof.

		
	12.
	Warranty Disclaimer

		
	12.1.
	CM warrants Product for 13 months from the date code for repair or replacement.  

		
	12.2.
	Except as set forth in this Agreement, CM does not provide any warranty of:

		
	c)
	Merchantability and fitness for any particular use;

		
	d)
	Compatibility with any other product; or

		
	e)
	Misuse by user or design fault.

		
	12.3.
	Notwithstanding the foregoing disclaimer, CM warrants that the Products shall be:

		
	a)
	manufactured in accordance with U.S. 21 CFR 820 FDA Good Manufacturing Practices and in accordance with all other regulatory requirements applicable for the Products for sale in the United States as notified by MFR, and for such other countries as MFR shall specify from time to time as notified by MFR;

		
	b)
	manufactured in accordance with the agreed upon Product specifications (Clause 2);

		
	c)
	shall operate in accordance with the Product design (Clause 2); and

		
	d)
	all versions of its Products which are sold and licensed to MFR comply with Directive 2011/65/EU Restriction of Hazardous Substances (RoHS), and will be documented for MFR and its 

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customers as meeting the RoHS Compliance definition per the directive.
		
	13.
	Limitation of Liability

		
	13.1.
	Neither party shall be liable hereunder for any indirect, punitive, incidental or consequential loss or damages of the counter-party or third party.

		
	14.
	Field Failure and Recalls

		
	14.1.
	All regulatory assessments including complaint investigations, Medical Device Reports (“MDRs”) to FDA and all applicable Regulatory Jurisdictions determination and decisions to recall Product will be the responsibility of MFR.  MFR shall make reasonable efforts to notify CM within two (2) business days of becoming aware that any regulatory agency has issued a recall of Products.  CM is responsible for acknowledging receipt of MFR’s notification and taking the actions listed below as soon as reasonably possible.  In no event shall MFR’s failure to notify CM of a recall within two (2) business days relieve CM of any of its responsibilities hereunder.  However, CM shall not be liable for the cost of any product built that could have been avoided by CM had timely notification been provided to CM, when such information was available and known.

		
	14.2.
	MFR is responsible for field returns due to design defects; while CM will be responsible for manufacturing defects and restricted to remedy under Clause 3.4.  CM will be liable for any additional out of pocket costs incurred by MFR as a result of CM’s failure to meet its warranty obligations.

		
	14.3.
	For purposes of this Agreement, “Epidemic Failures” shall mean Product failures within thirteen (13) months after the date of delivery of the Product, equal to or in excess of 1% of any particular lot, 1% of all shipments within a particular timeframe, or any defect that may result in a safety related concern, resulting from substantially similar defects including without limitation components with inherent or latent defects.  Notwithstanding the foresaid, the Epidemic Failure shall not include any Product failure that is directly caused by Product designs and specification solely provided by MFR or materials provided or assigned by MFR, manufacturing process or quality control procedure instructed by MFR, or sub-supplier designated by MFR.

-17-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

		
	14.4.
	In the event that any of the Products are recalled because of Epidemic Failure where such Epidemic failure results from CM failing to meet its obligations under this Agreement including without limitation due to CM’s failure to meet its warranty, negligence or use of non-conforming parts, CM agrees to indemnify MFR in relation to all losses, actions, proceedings, liabilities, claims, demands, expenses, and costs (including legal costs, but excluding loss of profit or loss due to consequential, incidental, or indirect damage) arising or relating in any way to the recall, and CM will replace the affected lot and pay a maximum of 20% of the FOB value of the lot for recall cost compensation.

		
	15.
	Force Majeure

		
	15.1.
	Both parties are not liable for damage of breach owing to acts of God or other causes beyond its reasonable control.  The breaching party has to notify the other party of the breach within 5 business days the force majeure event begins or ends.  In case the breaching party cannot recover after 60 calendar days, the other party may terminate the Agreement with written notice to the affected party.

		
	16.
	Intellectual Property

		
	16.1.
	MFR Intellectual Property.  All intellectual property, tangible and intangible including without limitation, and any and all data, results, analyses, techniques, inventions, improvements, discoveries, ideas, processes, know-how, patents, patent applications, copyrights, trademarks, formulations, trade secrets and other proprietary information and rights (collectively, “Intellectual Property”) that is invented solely by MFR before and during the term of this agreement shall be the sole and exclusive property of MFR.

		
	16.2.
	CM Intellectual Property.  Except as expressly set forth herein, all intellectual property, tangible and intangible including without limitation, and any and all data, results, analyses, techniques, inventions, improvements, discoveries, ideas, processes, know-how, patents, patent applications, copyrights, trade secrets and other proprietary information and rights (collectively, “Intellectual Property”) that is invented solely by CM or its’ associated companies before and during the term of this agreement shall be the sole and exclusive property of CM or the assigned and associated entities.

-18-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

		
	16.3.
	Product Intellectual Property.  CM acknowledges the MFR’s exclusive ownership of all Intellectual Property Rights related to the Product and ownership of the Product (including any modifications thereto) whether created by MFR or CM separately or jointly, the unique processes used in the manufacture of the Product, all unique documentation used in the manufacture of the Product and the tooling for the Product (“Product Intellectual Property”).  CM further acknowledges that all such Intellectual Property, unique processes, unique documentation and tooling are confidential to MFR and shall be treated as Confidential Information under this Agreement.  Any Product Improvements shall be the property of MFR.  CM hereby assigns to MFR all right, title and interest in and to all Product Intellectual Property, Product Improvements and all intellectual property rights therein.  CM shall promptly notify MFR of all Product Improvements of which CM is aware and shall assist MFR, at MFR’s request and expense, to seek and maintain intellectual property protection for all Product Improvements.  As used herein, “Product Improvements” means all design information and all improvements, enhancements or changes to any Product, processes for manufacturing such Product or tooling for such Product.  Product Improvements excludes any improvements made by CM to its generally applicable manufacturing methods.

		
	16.4.
	CM will deliver all tooling and equipment (including fixtures) paid by MFR to MFR within thirty (30) calendar days of MFR’s request.  CM acknowledges that CM received no right to, and CM covenants that CM will not, supply Products to any third party.

		
	16.5.
	Infringement

		
	a)
	In the event there is proven infringement by one party the Infringed Party is entitled to injunctive relief and compensation.

		
	b)
	Each party shall provide the other with prompt written notice of any claims made (or threatened) by third parties alleging invalidity or infringement of CM or MFR Intellectual Property.

		
	16.6.
	Confidential Information & Trade Secret

		
	a)
	As used herein, Confidential Information means all information or data (including all oral and visual information and all information 

-19-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

or data recorded in writing or electronic writing) which is clearly identified by a Party as confidential at the time of disclosure;
		
	b)
	During the continuance of this Agreement and for a period of four (4) years after the termination or expiration of this Agreement, each Party agrees: i) not to disclose or cause to be disclosed either directly or indirectly to any person, any Confidential Information of the other Party without the prior written approval of the other Party other than to its affiliates and its and their employees, officers, directors, contractors and agents who need to know such information to exercise the receiving party’s rights and perform its obligations under this Agreement, if such representatives are bound to protect the other party’s proprietary and confidential information on terms no less protective of such information than the terms herein and the receiving party shall be responsible for any breach of this Clause by any such representatives; ii) to safeguard the Confidential Information of the other Party in the same manner the receiving party safeguards its own proprietary and confidential information of like character (but using no less than reasonable care); and iii) only use such Confidential Information of the other Party except to exercise its rights and perform its obligations under this Agreement.  For the avoidance of doubt, all specifications and tooling for the Products are the Confidential Information of the Purchaser.

		
	c)
	The obligations imposed on the Parties by Clause a) do not apply to any information which:

		
	1)
	is in, or after the date of this Agreement enters into, the public domain;

		
	2)
	was received lawfully by the receiving Party from a third party not being subject to any obligation or confidence regarding such information;

		
	3)
	is required by law to be disclosed; provided that if a court or any other governmental entity orders the receiving Party to produce any of the disclosing Party’s Confidential 

-20-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Information, the receiving Party shall (i) to the extent permitted by law, promptly notify the disclosing Party of such order, (ii) produce only the information specifically required to be disclosed, and (iii) cooperate with the disclosing Party’s objections regarding the disclosure.
		
	17.
	Non-Solicitation/Non-Compete

		
	17.1.
	No Party or its directors, employees or agents shall directly or indirectly solicit, divert or engage any business partners, directors, employees or agents of the other party for a period of 2 years after the termination of this Agreement.

		
	17.2.
	During the term of this Agreement and for two years after expiration or termination, CM shall not manufacture competing products for any party other than those expressly approved in writing by MFR.  In no event shall CM, either during the term of this Agreement thereafter manufacture any products which incorporate MFR’s Intellectual Property or confidential information or which are designed to be used with MFR’s products for itself or any third party.

		
	18.
	Relationship of Parties

		
	18.1.
	The relationship between the MFR and CM established in this Agreement is that of independent contractors, and nothing contained herein shall be deemed to create a relationship of employer and employee, principal and agent, partners, or otherwise.  Neither party shall have any authority to obligate the other in any respect nor hold itself out as having any such authority.  All personnel of either party shall not represent themselves as employees of the counter party.

		
	18.2.
	MFG hereby grants to CM a limited license to use MFR’s Intellectual Property and Confidential Information solely for the purpose of manufacturing Products in China for MFR under the terms of this Agreement.  No other right or license is granted or may be implied by the terms of this Agreement.  All licenses granted hereunder shall expire upon the termination of this Agreement.

		
	19.
	Assignment

		
	19.1.
	A Party may not assign any of its rights under this Agreement without the prior written consent of the other Party; provided however that MFR may assign this Agreement to an acquirer of all or substantially all of the business or assets of MFR.  CM shall not subcontract or delegate any of its obligations under this 

-21-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Agreement to any affiliate or third party without MFR’s prior written consent and provided that such affiliate or third party agrees in writing to be bound by provisions no less protective of MFR’s Confidential Information than Clause 16 hereof and provisions which assign to CM all Product Improvements so that such Product Improvements shall be assigned to MFR hereunder.  Any assignment, transfer, subcontracting or delegation not in accordance with the foregoing shall be void.
		
	20.
	Severability

		
	20.1.
	If any provision of this Agreement shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable.  If such provision could be limited to become valid and enforceable, then such provision shall be deemed to be written, construed, and enforced as so limited.

		
	21.
	Waiver

		
	21.1.
	The failure of either Party to enforce any provision of this Agreement shall not be construed as a waiver or limitation of that Party’s right to subsequently enforce and compel strict compliance with every provision of this Agreement.

		
	22.
	Interpretation and Applicable Law

		
	22.1.
	The provisions of this Agreement shall be interpreted according to the laws of England, notwithstanding its conflict of laws provisions.

		
	23.
	Dispute Resolution

		
	23.1.
	Arbitration.  Any controversy or claim arising out of or relating to this Agreement shall be determined by arbitration in accordance with the International Arbitration Rules of the International Centre for Dispute Resolution.  The number of arbitrators shall be three (3).  The place of arbitration shall be London, England.  The language(s) of the arbitration shall be English.  The official text of the Agreement or any notices given shall be in English.  In the event of any dispute concerning the construction or meaning of this Agreement, reference shall be made only to this Agreement as written in English, and not to any other translation into any other language.  The award shall be rendered within two (2) months of the commencement of the arbitration, unless such time limit is extended by the arbitrator(s).  It is the intent of the Parties that, barring extraordinary circumstances, arbitration proceedings will be concluded within 

-22-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

thirty (30) calendar days from the date the arbitrator(s) are appointed.  The arbitrator(s) may extend this time limit in the interests of justice.  Failure to adhere to this time limit shall not constitute a basis for challenging the award.  Consistent with the expedited nature of arbitration, pre-hearing information exchange shall be limited to the reasonable production of relevant, non-privileged documents explicitly referred to by a party for the purpose of supporting relevant facts presented in its case, carried out expeditiously.  This Agreement, and any and all disputes arising in connection with this Agreement, will be governed by the laws of England.
		
	23.2.
	Mediation.  Once the demand for arbitration is initiated, the parties agree to attempt to settle any controversy or claim arising out of or relating to this Agreement, or a breach thereof by mediation, administered by the International Centre for Dispute Resolution under its International Mediation Rules at the request of either party.  The number of mediators shall be one.  The place of mediation shall be London, England.  The language of the mediation shall be English.  Mediation may proceed concurrently with arbitration and shall not be a condition precedent to any stage of the arbitration process.

		
	23.3.
	Costs.  Each Party must bear its own costs of and incidental to the preparation, execution, and completion of this Agreement.

		
	23.4.
	Injunctive Relief.  Notwithstanding anything to the contrary herein, in the event of any actual or imminent infringement of MFR’s Intellectual Property rights or disclosure of MFR’s Confidential Information, MFR shall have the right to seek, obtain and enforce injunctive relief from any court of competent jurisdiction.

		
	24.
	Entire Agreement

		
	24.1.
	This Agreement, together with any Addendums, comprises the entire agreement between the Parties with respect to the subject matter of this Agreement, and supersedes all prior understandings, agreements, representations, and correspondence with respect to the subject matter hereof.

		
	25.
	Amendment

		
	25.1.
	No modification, alteration or waiver of this Agreement, together with any Addendums, shall be binding upon the Parties unless made in writing and signed and exchanged by the duly authorized representative of the Parties.

-23-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

		
	26.
	Further Assurance

		
	26.1.
	Each Party Agrees to execute such further papers, agreements, documents, instruments and the like as may be necessary or desirable to effect the purpose of this Agreement and to carry out its provisions.

-24-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
			
	EXECUTED AS AN AGREEMENT

	 
	 
	 

	SIGNED for and on behalf of Healthcare Technology International Limited (CM)

	By:
	/s/ James Li
	 

	 
	 
	 

	Name:
	James Li
	 

	 
	 
	 

	Title:
	Division General Manager
	 

By executing this Agreement, the signatory warrants that the signatory is duly authorized to execute this agreement on behalf of CM.
 	
			
	SIGNED for and behalf of Miramar Labs, Inc. (MFR)

	 
	 
	 

	By:
	/s/ Steve Higa
	 

	 
	 
	 

	Name:
	Steve Higa
	 

	 
	 
	 

	Title:
	VP, Manufacturing
	 

By executing this Agreement, the signatory warrants that the signatory is duly authorized to execute this agreement on behalf of MFR.

-25-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Addendum A
Tooling and Equipment List

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

MMR Equipment & Fixture Control List
	
										
	Item
	Control No.
	Equipment/Fixture Description
	E/F/M
	Owned by
	Location
	Chinese Name
	No.
	Photo
	Remark/ [Chinese]

	1
	[***]
	[***]
	Fixture
	MMR
	[Chinese]
	[***]
	[***]
	[***]
	Remake New in AML

	2
	[***]
	[***]
	Fixture
	MMR
	[Chinese]
	[***]
	[***]
	[***]
	Remake New in AML

	3
	[***]
	[***]
	Fixture
	MMR
	[Chinese]
	[***]
	[***]
	[***]
	Remake New in AML

	4
	[***]
	[***]
	Machine
	Factory
	[Chinese]
	[***]
	[***]
	[***]
	Use AML's

	5
	[***]
	[***]
	Fixture
	MMR
	[Chinese]
	[***]
	[***]
	[***]
	Reuse current fixture

	6
	[***]
	[***]
	Equipment
	Factory
	[Chinese]
	[***]
	[***]
	[***]
	Remake New with conveyor in AML

	7
	[***]
	[***]
	Fixture
	MMR
	[Chinese]
	[***]
	[***]
	[***]
	Remake New with conveyor in AML

	8
	[***]
	[***]
	Fixture
	MMR
	[Chinese]
	[***]
	[***]
	[***]
	MMR's fixture transfer to AML

	9
	[***]
	[***]
	Fixture
	MMR
	[Chinese]
	[***]
	[***]
	[***]
	Transfer to AML (may need to remake new in AML)

	10
	[***]
	[***]
	Fixture
	MMR
	[Chinese]
	[***]
	[***]
	[***]
	Transfer to AML (may need to remake new for AMLs USW machine)

	11
	[***]
	[***]
	Fixture
	MMR
	[Chinese]
	[***]
	[***]
	[***]
	Transfer to AML

	12
	[***]
	[***]
	Fixture
	MMR
	QC1
	[***]
	[***]
	[***]
	Transfer to AML

	13
	[***]
	[***]
	Fixture
	MMR
	QC1
	[***]
	[***]
	[***]
	Transfer to AML (maybe need to remake to suit AML's pull force equipment)

	14
	[***]
	[***]
	Machine
	MMR
	[Chinese]
	[***]
	[***]
	[***]
	Transfer to AML

	15
	[***]
	[***]
	Equipment
	Factory
	[Chinese]
	[***]
	[***]
	[***]
	Transfer to AML

	16
	[***]
	[***]
	Equipment
	MMR
	[Chinese]
	[***]
	[***]
	[***]
	Transfer to AML

	17
	[***]
	[***]
	Equipment
	MMR
	[Chinese]
	[***]
	[***]
	[***]
	Transfer to AML

	18
	[***]
	[***]
	Equipment
	MMR
	[Chinese]
	[***]
	[***]
	[***]
	Transfer to AML

	19
	[***]
	[***]
	Equipment
	MMR
	[Chinese]
	[***]
	[***]
	[***]
	Transfer to AML

	20
	[***]
	[***]
	Fixture
	MMR
	[Chinese]
	[***]
	[***]
	[***]
	Transfer to AML

	21
	[***]
	[***]
	Equipment
	Factory
	[Chinese]
	[***]
	[***]
	[***]
	AML to supply

	22
	[***]
	[***]
	Equipment
	Factory
	[Chinese]
	[***]
	[***]
	[***]
	AML to supply

	23
	[***]
	[***]
	Machine
	Factory
	[Chinese]
	[***]
	[***]
	[***]
	AML to supply

	24
	[***]
	[***]
	Machine
	Factory
	[Chinese]
	[***]
	[***]
	[***]
	AML to supply

	25
	[***]
	[***]
	Equipment
	Factory
	[Chinese]
	[***]
	[***]
	[***]
	AML to supply

	26
	[***]
	[***]
	Machine
	Factory
	[Chinese]
	[***]
	[***]
	[***]
	AML to supply

	27
	[***]
	[***]
	Equipment
	Factory
	QC1
	[***]
	[***]
	[***]
	AML to supply

	28
	[***]
	[***]
	Equipment
	Factory
	QC1
	[***]
	[***]
	[***]
	AML to supply

	29
	[***]
	[***]
	Machine
	Factory
	[Chinese]
	[***]
	[***]
	[***]
	AML to supply

	30
	[***]
	[***]
	Machine
	Factory
	[Chinese]
	[***]
	[***]
	[***]
	AML to supply

-2-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
										
	31
	[***]
	[***]
	Machine
	Factory
	[Chinese]
	[***]
	[***]
	[***]
	AML to supply

	32
	[***]
	[***]
	Machine
	Factory
	[Chinese]
	[***]
	[***]
	[***]
	AML to supply

	33
	[***]
	[***]
	Equipment
	Factory
	[Chinese]
	[***]
	[***]
	[***]
	AML to supply

	34
	[***]
	[***]
	Equipment
	Factory
	QC1
	[***]
	[***]
	[***]
	AML to supply

	35
	[***]
	[***]
	Equipment
	Factory
	QC1
	[***]
	[***]
	[***]
	Transfer to AML & AML to supply

-3-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Addendum B
Initial Pricing
	
					
	Product
	Reference Specification
	Lead Time from Purchase Order to Delivery
	Minimum Order Quantity (MOQ)
	Unit Price

	G4 bioTip  
Assy
	PN2091,  
Revision E
	3 months
	[***]
	[***]

Remark:
All of the Lead-time from purchasing order to delivery, Minimum order quantity, unit price will be amended due to the change of the material suppliers.
The minimum order quantity of GLS pre-color resin is [***].  The MOQ of purchasing order of G4 biotip will be increased after MFR approves to use the GLS pre-color resin.  CM will charge the rest of the resin to MFR if the resin cannot use up within one year.

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

HEALTHCARE TECHNOLOGY INTERNATIONAL LIMITED
15/F., Blk B, Veristrong Ind, Centre, 34-36 Au Pui Wan Street, Fotan, NT, HK
Tel: 852-23424148
Fax: 852-23437310

Date    :    15th Feb 2012
TO    :    Miramar Labs
FM    :    Felix Yu / Raymond Lau
CC    :    Peter Mok, Michelle Lum, James Li
Subject    :    Quotation for G4 BioTip
	
			
	Revision
	Description
	Date

	A
	Initial Quote
	9th April 2011

	B
	Revised Quote
	13th Sept 2011

	C
	Revised NRE and PCB Tooling
	23rd Sept 2011

	D
	Revised Production setup cost
	11th  Nov 2011

	E
	Revised Unit Price
	15th Feb 2012

Dear Sir,
G4 BioTip is an OEM project from Miramar Labs. This quote is based on discussion with Miramar Labs & ZaoTech on 10th Feb 2012. The unit price was amended due to the material price changed. Enclosed is the update quotation for G4 BioTip.
Quotation
1.    G4 BioTip Unit Price
	
			
	Stage
	MOQ (Units)
	FOB HK Unit Price (USD)

	G4 Bio Tip
	[***]
	[***]

Remarks:
Pls refer the details breakdown in appendix A.
The price for the ES/EP/PP will quote separate after confirmation on the qty that required.
Confidential & Proprietary Information of Healthcare Technology International Ltd.
Page 1 of 5

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

HEALTHCARE TECHNOLOGY INTERNATIONAL LIMITED
15/F., Blk B, Veristrong Ind, Centre, 34-36 Au Pui Wan Street, Fotan, NT, HK
Tel: 852-23424148
Fax: 852-23437310

2    Tooling
	
				
	Item
	Description
	Amount
	Total

	1
	[***]
	[***]
	[***]

	2
	[***]
	[***]

	3
	[***]
	[***]

	4
	[***]
	[***]

	5
	[***]
	[***]

	[***]

	6
	[***]
	[***]

	7
	[***]
	[***]

	8
	[***]
	[***]

	8
	[***]
	[***]

Remark : [***]
3.    Production Jig & Fixture Setup
	
			
	Item
	Description
	Cost (USD)

	1
	[***]
	[***]

	2
	[***]

	3
	[***]

Remark: The production setup cost didn't include any specified equipment. If there is require specified equipment which will quote separately
Assume following equipment is consigned by customer.
		
	•
	[***]

		
	•
	[***]

		
	•
	[***]

		
	•
	[***]

		
	•
	[***]

		
	•
	[***]

If it is not fit to use in HTI's equipment, separate charge on the re-build fixture will be provided.
Confidential & Proprietary Information of Healthcare Technology International Ltd.
Page 2 of 5

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

HEALTHCARE TECHNOLOGY INTERNATIONAL LIMITED
15/F., Blk B, Veristrong Ind, Centre, 34-36 Au Pui Wan Street, Fotan, NT, HK
Tel: 852-23424148
Fax: 852-23437310

4.    Testing Fixture
	
					
	Item
	Test station Description
	Equipment
	Qty
	total

	A
	[***]
	[***]
	[***]
	[***]

	B
	[***]
	[***]
	[***]

*Remarks:
a) The quote is not including the [***].
b) Assume following testers are consigned by Miramar Labs.
		
	•
	[***]

		
	•
	[***]

		
	•
	[***]

		
	•
	[***]

		
	•
	[***]

5.    NRE
Engineering follow up from ES to MP stage    [***]
Confidential & Proprietary Information of Healthcare Technology International Ltd.
Page 3 of 5

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

HEALTHCARE TECHNOLOGY INTERNATIONAL LIMITED
15/F., Blk B, Veristrong Ind, Centre, 34-36 Au Pui Wan Street, Fotan, NT, HK
Tel: 852-23424148
Fax: 852-23437310

	
					
	 
	TASK
	DELIVERABLES
	Resp.
	Applicable

	1
	[***]
	[***]
	AML
	Yes

	2
	[***]
	[***]
	AML
	Yes

	3
	[***]
	[***]
	AML
	Yes

	4
	[***]
	[***]
	AML
	Yes

	5
	[***]
	[***]
	AML
	Yes

	6
	[***]
	[***]
	AML
	Yes

	7
	[***]
	[***]
	AML
	Yes

	8
	[***]
	[***]
	AML
	Yes

	9
	[***]
	[***]
	AML
	Yes

	10
	[***]
	[***]
	AML
	Yes

	11
	[***]
	[***]
	AML
	Yes

	12
	[***]
	[***]
	AML
	Yes

	13
	[***]
	[***]
	AML
	Yes

	14
	[***]
	[***]
	AML& Cust
	 

	15
	[***]
	[***]
	AML
	Yes

	16
	[***]
	[***]
	AML
	Yes

	17
	[***]
	[***]
	AML
	Yes

Remark :
If customer issue order with [***], HTI will absorb [***] on the NRE cost.
6.    Preliminary Schedule — Pls refer to Appendix B
Confidential & Proprietary Information of Healthcare Technology International Ltd.
Page 4 of 5

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Addendum C
 
PN2091 bio Tip Assembly, ev. C (Drawing/BOM)
Cosmetic Specification (Zao Tech., Dated 5/22/12)
W10050 G4 Bio Tip Incoming Inspection (Work Instruction)

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Notes:
		
	1.
	USE IN CONJUNCTION WITH [***].

		
	2.
	COSMETIC REQUIREMENTS FOR INDIVIDUAL PARTS

ALSO APPLY AT THE ASSEMBLY LEVEL.
		
	3.
	INSPECTION REQUIREMENTS:

		
	1.
	MIRAMAR LABS: INSPECT PER W10050.

		
	4.
	ASSEMBLY COSMETIC REQUIREMENTS:

		
	2.
	[***]

		
	3.
	[***]

		
	4.
	[***]

		
	5.
	[***]

		
	6.
	[***]

		
	5.
	PACKAGING:

		
	1.
	[***]

		
	2.
	[***]

		
	3.
	[***]

		
	6.
	C OF C REQUIRED INCLUDING PART NUMBER, REV, QTY, LOT NUMBER

		
	7.
	COPY OF WORK ORDER/LOT HISTORY RECORD ESTABLISHING MATERIAL/COMPONENT TRACEABILITY REQUIRED.

[***]

2

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

[***]

3

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

[***]

-4-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

G4 BIOTIP ASSEMBLY
Miramar Labs  
PN2091 Rev. C 
EO 11-1484

	
								
	Item
	Qty
	Description
	Miramar Labs P/N
	Miramar Labs Sub-Part
	MFG  
MFG P/N
	Vendor 
Vendor P/N
	Remarks

	1
	[***]
	[***]
	PN2045
	 
	 
	 
	 

	2
	[***]
	[***]
	PN2090
	 
	 
	 
	 

	 
	[***]
	[***]
	 
	PN1782
	PALL
	PTF045LROP
	PROVIDED BY ML

	3
	[***]
	[***]
	PN2089
	 
	 
	 
	 

	 
	[***]
	[***]
	 
	PN2118
	POLYZEN
	N/A
	PROVIDED BY ML

	4
	[***]
	[***]
	PN2010
	 
	 
	 
	 

	 
	[***]
	[***]
	 
	PN2009
	 
	 
	 

	 
	[***]
	[***]
	 
	PN2011
	 
	 
	 

	5
	[***]
	[***]
	PN2328
	 
	 
	 
	 

	6
	[***]
	[***]
	PN2097
	 
	 
	 
	 

	 
	[***]
	[***]
	 
	PN2096
	 
	 
	 

	 
	[***]
	[***]
	 
	PN2098
	 
	 
	 

	7
	[***]
	[***]
	PN2329
	 
	 
	 
	 

	8
	[***]
	[***]
	PN2087
	 
	 
	 
	 

	9
	[***]
	[***]
	PN2088
	 
	 
	 
	 

	10
	[***]
	[***]
	PN2109
	 
	 
	 
	 

	 
	[***]
	[***]
	 
	PN2030
	 
	 
	 

	11
	[***]
	[***]
	PN2110
	 
	 
	 
	 

	 
	[***]
	[***]
	 
	PN2029
	 
	 
	 

	12
	[***]
	[***]
	PN2226
	 
	 
	 
	 

-5-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

6

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Surface definition- A Class
[***]

-7-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Zao Tech Confidential

-8-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Surface definition- B Class
[***]

-9-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Zao Tech Confidential

-10-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Surface definition- C Class
[***]

-11-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Zao Tech Confidential

-12-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

-13-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Cosmetic Specification

Miramar G4 BioTip Cosmetic Specification
	
							
	Defects description
	Acceptance Criteria
	Classification

	A
	B
	C
	D
	Major
	Minor

	Surface cosmetic

	[***]
	[***]
	[***]
	X
	 

	[***]
	[***]
	[***]
	 
	X

	[***]
	[***]
	 
	X

	[***]
	[***]
	 
	X

	[***]
	[***]
	 
	X

	[***]
	[***]
	X
	 

	[***]
	[***]
	 
	X

	[***]
	[***]
	 
	X

	[***]

	[***]
	[***]
	 
	X

	[***]
	[***]
	 
	X

	[***]
	[***]
	 
	X

	[***]
	[***]
	 
	X

	[***]
	[***]
	 
	X

	[***]
	[***]
	X
	 

	[***]
	[***]
	 
	X

	[***]
	[***]
	 
	X

	[***]
	[***]
	 
	X

-14-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

Cosmetic Specification

Part Level Cosmetic Specification
	
							
	Defects description
	Acceptance Criteria
	Classification

	A
	B
	C
	D
	Major
	Minor

	[***]
	[***]
	X
	 

	[***]
	[***]
	 
	X

	[***]
	[***]
	X
	 

	[***]
	[***]
	X
	 

	[***]
	[***]
	 
	X

	[***]
	[***]
	 
	X

	[***]
	[***]
	X
	 

Checking criteria:
Class A: [***]
Class B: [***]
Class C: [***]
light source: [***]

-15-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

-16-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

-17-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

-18-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

-19-

[***] Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the omitted portions.

	
					
	
	Document Name
	Document Number
	Revision
	Date Effective

	Work Instruction, G4 bioTip Incoming Inspection
	WIOO50
	B
	10/5/11

Page  1 of 2

	
				
	Revision
	EO#
	Initiator
	Summary of Changes

	A
	11-1365
	P. Bentley
	New release

	B
	11-1580
	P Bentley
	Change 6.7.4 from 35mmHg. Typo corrections and other clarifications.

1.0PURPOSE:
This document describes the procedure for inspecting and acceptance of incoming lots of G4 bioTips from contract manufacturers.
2.0    REFERENCES:
PN2091 G4 bioTip Assembly Drawing 
OP0007 Material Controls
3.0    RESPONSIBILITIES:
Manufacturing, Quality Assurance and Research and Development are responsible for performing the functions described in this procedure.
4.0    EQUIPMENT/MATERIALS:
		
	4.1

	[***]

		
	4.2

	[***]

		
	4.3

	[***]

		
	4.4

	[***]

		
	4.5

	[***]

		
	4.6

	[***]

5.0    AQL LEVEL
		
	5.1

	[***]

		
	5.2

	[***]

Note. Remove qty to be inspected from the lot under the flow hood to prevent contamination of the balance of the lot.
6.0    PROCEDURE:
		
	6.1

	Receive lots of bioTips per OP0007

		
	6.2

	Record all inspection data on form FM0011.

Confidential - Do not photocopy without permission from Miramar Labs.

	
					
	
	Document Name
	Document Number
	Revision
	Date Effective

	Work Instruction, G4 bioTip Incoming Inspection
	WIOO50
	B
	10/5/11

Page  2 of 2

		
	6.3
	Inspect assemblies for any cosmetic defects:

6.3.1    Per PN2091 drawing note section 4.
6.3.2    Ensure labels and PCBs are in the proper orientation.
6.3.3    [***]
6.3.4    Any other anomalies
		
	6.4
	Per [***]. Note: Non-circled FAI dimensions may be measured using any appropriate method.

		
	6.5
	Using [***]

		
	6.6
	[***]

		
	6.7
	Place [***] and run test as follows: 

6.7.1    [***]
6.7.2    [***]
6.7.3    [***]
6.7.4    [***]
6.7.5    [***]
		
	6.8
	Place [***] and run test as follows: 

6.8.1    [***]
6.8.2    [***]
6.8.3    [***]
6.8.4    [***]
6.8.5    [***]
		
	6.9
	Record pass/fail status and process per OP0007.

		
	6.10
	Label inspected units with their lot number and store them as Retain Samples.

		
	6.11
	Send an additional [***] testing. Results are for informational purposes only.

Confidential - Do not photocopy without permission from Miramar Labs.SECURED
PROMISSORY NOTE

 

	$900,000.00	May 31, 2016

 

 

FOR
VALUE RECEIVED, each
of the undersigned
parties, jointly, severally, individually
and collectively (collectively
the “Company”), hereby
promises to pay
to the order of
COMPUTERLAW GROUP LLP,
a limited liability
law partnership of
the State of
California (“Payee”; Payee
and any subsequent
holders hereof are
hereinafter referred to
collectively as “Holder”), at
the address of
Computerlaw Group LLP,
attention to its
Managing Member, at
Jack Russo c/o Computerlaw Group LLP, 401 Florence Street, Palo Alto, California 94301, or at such other
place as Holder
may designate to
Company in writing
from time to
time, the principal
sum of Nine Hundred Thousand
and 00/100 Dollars
($900,000.00), together with
interest on the outstanding
principal balance hereof
at the rate
set forth herein
and all other
amounts that shall be payable herein
(collectively, the “Indebtedness”), in lawful money of the United States of America, which shall at the time of payment
be legal tender in payment of all debts and dues, public and private.

 

All
payments hereon shall
be made in
collected funds and
shall be applied
to principal, accrued interest,
and charges and
expenses owing on
or in connection
with this Secured Promissory
Note (this “Note”),
in such order
as Holder elects,
except that payment
shall be applied to
accrued interest before
principal.

 

Simple
interest shall accrue
on the outstanding
unpaid principal balance
of this Note
at a rate of
interest equal to
the statutory rate
of ten percent
(10%) per annum;
provided that no additional
interest shall be
due and this
Note will be
discounted to a
face amount of
$750,000 if payment in
full is made
in 15 monthly
installments of $50,000
per month commencing
on June 1, 2016
and continuing each
month for fourteen
additional monthly payments
of $50,000 on
July 1, August 1,
September 1, October 1,
November 1, December
1, 2016 and
January 1, February
1,

March
1, April 1,
May 1, June
1, July 1,
and August 1,
2017 but if
timely monthly payments
are not made then
the principal balance
shall remain at
$900,000 and the
interest thereon shall
accrue on the outstanding
unpaid principal balance
of this Note
at a rate
of interest equal
to ten percent (10%)
per annum commencing
on June 1,
2016. Interest hereunder
shall accrue daily
and be calculated on
the basis of
a 365-day year
for actual days
elapsed.

 

To
the extent not
earlier paid, all
principal and interest
under this Note
shall be due
and payable in full
on August 1,
2017 (the “Maturity
Date”); provided, if
all such principal
and interest is not
paid by or
on August 1,
2017, all principal
and interest not
previously paid under this
Note shall instead
be due and
payable in full
on August 2,
2017. The maturity
of the obligations may
be accelerated as
provided herein.

 

If
any payment is
due under this
Note on a
day that is
not a business
day on which national
banks are open
for business in
San Francisco, California,
then the payment
due hereunder shall be
payable on the
next such business
day on which
national banks are
open for business in
San Francisco, California.

 

The
Indebtedness evidenced by
this Note may
be prepaid in
whole or in
part without

    	 	1	 

     

    

permission
of the Holder.
Any such prepayment
shall be first
applied to all
charges and expenses owing
Holder in connection
with this Note,
then all accrued
and unpaid interest,
and then to unpaid
principal.

 

This
Note shall be
in default upon
the occurrence of
any of the
following events (each,
an “Event of Default”):

 

1. 
Any failure
to pay the
Indebtedness, or any
part thereof, when
and as the
same shall become due
and payable.

 

2. 
Any of the
undersigned parties shall
individually or collectively
(i) voluntarily commence any
proceeding or file
any petition or
any notice of
its intent to
commence or file
any proceeding, petition or
proposal, seeking relief
under Title 11
of the United
States Code or
any other federal or
state bankruptcy, insolvency
or similar law,
(ii) apply for
or consent to
the appointment of a
receiver, trustee, custodian,
sequestrator or similar
official for Company
or for any substantial
part of its
property or assets,
(iii) make a
general assignment for
the benefit of creditors,
or (iv) take
any corporate or
stockholder action in
furtherance of any
of the foregoing.

 

3.   
An involuntary
proceeding shall be
commenced or an
involuntary petition shall
be filed in a
court of competent
jurisdiction seeking (i)
relief in respect
of any undersigned
party or of any
substantial part of
the property or
assets thereof, under
Title 11 of
the United States
Code or any other
federal or state
bankruptcy, insolvency or
similar law, (ii)
the appointment of
a receiver, trustee, custodian,
sequestrator or similar
official for Company
or any substantial
part of its property
or (iii) the
winding-up or liquidation of
any of the
undersigned parties, and
such proceeding, petition or
order shall continue
unstayed and in
effect for a
period of 30
consecutive days.

 

4. 
Any entry
of a final
judgment, decree, levy,
attachment, garnishment or
other process, or the
filing of any
lien against Company
with respect to
any obligation in
excess of $25,000
and which is not
substantially covered by
insurance, or such
judgment or other
process shall not
have been, within sixty
(60) days from
the entry hereof,
(i) bonded over
to the satisfaction
of Holder and appealed,
(ii) vacated or
(iii) discharged.

 

5. 
Any liquidation
or dissolution by
any of the
undersigned parties or
any adoption by any
of the undersigned
parties of any
plan of liquidation
or dissolution.

 

6. 
Any resignation
or removal of
either or both
Ben Change and/or
Richard Change as executives
of any of
the undersigned parties
that is not
approved in writing
by the Holder.

 

If
any Event of
Default described in
Paragraphs 2 and
3 above occurs
all of the
unpaid principal, interest and
other amounts under
this Note shall
automatically become immediately
due and payable
in full. If
any other Event
of Default occurs
and continues without
cure for a period
of ten (10)
days after the
date of receipt
of written notice
of such Event
of Default, then the
entire principal sum
outstanding, together with
accrued interest thereon,
fees, charges and costs,
if any, after
the expiration of
said ten (10)
day cure period,
if applicable, shall
become immediately due and
payable upon the
election of the
Holder and notice
by the Holder
to the undersigned parties
of such election.
Each of the
undersigned parties agrees
to promptly give

    	 	2	 

     

    

written
notice to Holder
in reasonable detail
of any of
the foregoing defaults
in the event Company
becomes aware thereof.

 

Terms
used herein and
not defined herein
shall have the
meanings given such
terms in the Uniform
Commercial Code as
in effect in
the State of
California (the “UCC”).
As security for the
payment and performance
of the Indebtedness,
each of the
undersigned parties does
hereby pledge, assign, transfer,
deliver and grant
to Holder a
continuing and unconditional
security interest in and
to any and
all personal and
real property, of
any kind or
description, tangible or intangible,
wheresoever located and
whether now existing
or hereafter arising
or acquired, including, without
limitation, the following
(all of which
property existing now
and/or in the future,
along with the
products and all
proceeds therefrom existing
now or hereafter
in the future, are
individually and collectively
referred to as
the “Collateral”):

 

(a) 
all customer
agreements including all
Accounts and all
Goods whose sale,
lease, licensing or other
delivery or disposition
by Company has
given rise to
Accounts and have
been returned to, or
repossessed or stopped
in transit by,
or rejected or
refused by an
Account Debtor;

 

		(b)	all Inventory,
including raw materials,
work-in-process and finished
goods;

 

(c) 
all Goods
(other than Inventory),
including embedded software,
Equipment, vehicles, furniture and
Fixtures;

 

(d)  
All Software
and computer programs
and all other
electronically stored information
(“ESI”) including but
not limited to
all web sites,
web programming, and
all other associated assets
as well as
all patents, patent
applications, copyrights, copyright
applications, trademarks, trademark applications,
trade dress, trade
secrets, customer lists,
compilations, and all
other intellectual property rights
of all types
and kinds in
the United States
and throughout the
world

(collectively
the “IP Rights”);
Only secondary security interest granted where first priority security interest was already granted to others by Rich Pharmaceuticals,
Inc.

 

		(e)	All Securities,
Investment Property, Financial
Assets and Deposit
Accounts;

 

(f) 
all Chattel
Paper, Electronic Chattel
Paper, Instruments, Documents,
Letter of Credit Rights,
all proceeds of
letters of credit,
Health-Care-Insurance Receivables, Supporting
Indebtedness, notes secured
by real estate,
Commercial Tort Claims
and General Intangibles, including
Payment Intangibles; and,

 

(g)   
all other
personal property of
each of the
undersigned parties however
or wherever situated and
whether in the
possession of employees,
contractors or other
agents including but not
limited to all
documents of item,
certificates of ownership,
or other evidences
of rights which the
Company owns in
all personal property
now existing or
hereafter coming into
existence; and,

 

(h)  
all other
real property of
each of the
undersigned parties whether
located in California, New
Jersey or any
other location in
the United States
and each of
the undersigned parties agrees
to timely and
promptly execute such
mortgages, trust deeds
or other liens
thereon;

 

(h) 
all Proceeds
(whether Cash Proceeds
or Noncash Proceeds)
of the foregoing
personal property and/or real
property, including all
insurance policies and
proceeds of insurance
payable

    	 	3	 

     

    

by
reason of loss
or damage to
the foregoing property,
including unearned premiums,
and of eminent domain
or condemnation awards;

 

(i) 
any other
assets of any
type or nature
now existing or
which come into
existence in favor of
any of the
undersigned parties in
any respect and
for which the
intention hereby is
to have a first
priority security interest
and lien rights
as granted herein
to extend to
all such personal property,
real property or
other assets of
each and all
of the undersigned
parties.

 

Unless
an Event of
Default exists hereunder
and except as
otherwise provided herein, each
of the undersigned
parties in the
ordinary course of
business (and without
liquidation or other disposition
or transfer) shall
be entitled to
possession or use
of the Collateral;
however, in no event
shall any of
the undersigned parties
commit waste, bulk
sell, deposit into
“open source” (such as
SourceForge) or otherwise
take any action
which injures or
otherwise diminishes the value
of the Collateral
in any manner.

 

Each
of the undersigned
parties shall maintain
its existence and
shall not, except
upon 30 days’ prior
written notice to
the Holder and
the delivery of
any documents required
by Holder under the
next two paragraphs
in connection therewith,
(i) change its
name, jurisdiction of organization
or the location,
or (ii) change
its legal identity
or corporate structure.

 

Each
of the undersigned
parties shall, at
Holder’s request, at
any time and
from time to time,
execute and deliver
to Holder such
financing statements, amendments
and other documents and
do such acts
as Holder deems
necessary in order
to establish and
maintain valid, attached and
perfected security interests
in the Collateral
in favor of
Holder, free and
clear of all
liens, encumbrances and claims
and rights of
third parties whatsoever.
Each of the
undersigned parties hereby irrevocably
authorizes Holder at
any time, and
from time to
time, to file
in any jurisdiction any
initial financing statements
and amendments thereto
without the signature
of that party or
any of the
undersigned parties that
indicate the Collateral
is comprised of
all assets of that
party or each
of the undersigned
parties or words
of similar effect.
Each of the
undersigned parties further hereby
ratifies and affirms
its authorization for
any financing statements
and/or amendments thereto, executed and
filed by Holder in any
jurisdiction prior to the date of
this Note. Company represents
and warrants that
it has filed
UCC-1s on all
of the Collateral
(i) in and with the Secretary
of State of the State of Delaware, and (ii) with the United States Patent Office with respect
to any patents,
patent applications or
other patent rights,
whether choate or
inchoate, of any of the undersigned parties, and (iii) with the United States Trademark Office as to all of the applicable
Collateral that is a patent or patent application owned by any of the undersigned parties.

 

Each
of the undersigned
parties further agrees
to take any
other action reasonably requested
by the Holder
to ensure the
attachment, perfection and
priority of, and
the ability of
the Holder to enforce,
Holder’s security interest
in any and
all the Collateral,
including (a) causing Holder’s
name to be
noted as secured
party on any
certificate of title
for a titled
good if such notation
is a condition
to attachment, perfection
or priority of,
or ability of
Holder to enforce, Holder’s
security interest in
such Collateral, (b)
complying with any
provision of any
statute, regulation or treaty
of the United
States as to
any Collateral if
compliance with such
provision is a condition
to attachment, perfection
or priority of,
or ability of
Holder to enforce,
Holder’s security interest in
such Collateral, (c)
obtaining governmental and
other third party
consents and

    	 	4	 

     

    

approvals,
including any consent
of any licensor,
lessor or other
person or entity
obligated on Collateral, (d)
obtaining waivers from
mortgagees and landlords
in form and
substance satisfactory to Holder,
and (e) taking
all actions required
by the UCC
in effect from
time to time or
by other law,
as applicable in
any relevant UCC
jurisdiction, or by
other law as
applicable to such Collateral
or in any
such foreign jurisdiction.
Each of the
undersigned parties further
agrees to indemnify and
hold Holder harmless
against claims of any
persons or entities
concerning disputes arising over
the Collateral.

 

The
validity, construction and
enforceability of, and
the rights and
obligations of Company and
Holder under this
Note shall be
governed by, construed
and enforced in accordance
with, the laws
of the State
of California.

 

Time
is of the
essence of each
obligation of Company
hereunder. Each of
the undersigned parties represents
and warrants that
it has filed
UCC-1s with each
governmental entity necessary and/or
appropriate for the
perfection of all
security interests herein
and that all security
interests are first
priority security interests
granted and perfected
as of the
date of the Closing;
no other liens
exist.

 

Notwithstanding
anything to the
contrary contained herein,
the effective rate
of interest on the
Indebtedness shall not
exceed the lawful
maximum rate of
interest permitted to
be paid. Without limiting
the generality of
the foregoing, in
the event the
interest charged hereunder results
in an effective
rate of interest
higher than that
lawfully permitted to
be paid, then
such charges shall be
reduced by the
sum sufficient to
result in an
effective rate of
interest permitted, and any
amount which would
exceed the highest
lawful rate already
received and held
by Holder shall be
applied to a
reduction of principal
(without premium or
penalty) and not
to the payment of
interest.

 

In
the event any
provision of this
Note (or any
part of any
provision hereof) is
held by a court
of competent jurisdiction
to be invalid,
illegal or unenforceable
in any respect,
such invalidity, illegality or
unenforceability shall not
affect any other
provision (or remaining
part of the affected
provision) of this
Note; but this
Note shall be
construed as if
such invalid, illegal
or unenforceable provision (or
part thereof) had
not been contained
in this Note,
but only to
the extent it is
invalid, illegal or
unenforceable.

 

Each
of the undersigned
parties, for himself,
herself and itself
and his, her
and its successors and
assigns, waives presentment,
protest and demand,
notice of protest,
demand, dishonor and nonpayment
of this Note,
and expressly agrees
that this Note,
or any payment hereunder,
may be extended
from time to
time without in
any way affecting
the liability of
any of the undersigned
parties, individually, jointly
or severally, or
any endorser or
guarantor hereof.

 

This
Note may not
be changed orally,
but only by
an agreement in
writing signed by
the party against whom
enforcement of any
waiver, change, modification
or discharge is
sought.

Each
of the undersigned
parties, jointly and
severally and individually
and collectively agrees
to pay all reasonable
attorneys’ fees, expenses,
court costs and
all other costs
of whatever kind incident
to the collection,
enforcement, protection and
defense of this
Note, and the
collection, enforcement, protection and
defense of any
security for this
Note and the
perfection and priority of
Holder’s interest in
any security for
this note, and
all attorneys’ fees,
expenses, costs,

    	 	5	 

     

    

recording
fees, and other
costs of whatever
kind incident to
and necessary to
document, record, perfect and
continue the priority
and perfection of
the security interests
in personal property
and the mortgages, trust
deeds and/or other
lien interests in
any and all
real property of
each of the undersigned
parties. Each of
the undersigned parties
shall execute such
further documents including mortgages,
trust deeds or
other instruments as
may be reasonably
necessary or appropriate to
further perfect any
of the rights
granted Holder under
the terms and conditions
of the foregoing Secured
Promissory Note including
such notarized signatures
as may be
requested from time to
time by the
Holder hereof until
the indebtedness including
all principal, all
interest, and all fees,
costs and expenses
are paid in
full hereunder. The
undersigned parties hereby
agree that any legal
action or other
proceedings hereunder may
be brought in
the Courts in
Santa Clara County, California
and each hereby
consent to the
jurisdiction of said
Courts and further
that reasonable attorney’s fees,
costs and expenses
shall be added to
all amounts due
hereunder if default occurs
and is not
cured within 10
days of written
notice thereof. The
signature of each individual
below extends to
any limited liability
company, corporation, trust,
or other entity which
is owned or
controlled by or
under common control
with said individual
and each such affiliate
of each undersigned
party is bound
by this Secured
Promissory Note.

 

IN
WITNESS WHEREOF, the
undersigned has duly
executed this Secured
Promissory Note as of
the date first
set forth above.

 

 

Ben
Chang, individually: /s/ Ben Chang

 

Richard
Chang, individually: /s/ Richard Chang

 

 

RICH
PHARMACEUTICALS, INC.

 

By: /s/ Ben Chang

Name:
Ben Chang

Title:CEO
& President

Email:
b.chang@richpharmaceuticals.com

    	 	6

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