Document:

Exhibit 10.7

 

SALES REPRESENTATIVE AGREEMENT

 

This Sales Representative Agreement ("Agreement")
is effective as of this January 1st, 2013 ("Effective Date") between Semler Scientific, Inc. an Oregon
corporation with principal offices at 2330 NW Everett Street, Portland, OR 97210 ("Supplier"), and Doug Murphy-Chutorian,
an individual with principal offices at 335 Churchill Avenue, Palo Alto, CA 94301 ("Sales Representative").

 

The parties agree as follows:

 

1.           DEFINITIONS

 

a         "Products"
means those products listed in Exhibit A. Products may be changed, abandoned or added by Supplier in Supplier's sole
discretion at any time.

 

b         "Territory"
means the geographical areas set forth in Exhibit A attached hereto.

 

2.           APPOINTMENT
AND AUTHORITY OF SALES REPRESENTATIVE

 

a         Sales
Representative Appointment.  Subject to the terms and conditions of this Agreement, Supplier hereby appoints Sales Representative
as Supplier's non-exclusive Sales Representative for the Products only in the Territory, and Sales Representative hereby accepts
such appointment. Sales Representative's sole authority will be to solicit orders for the Products in the Territory in accordance
with the terms of this Agreement. Sales Representative will have no power or authority, expressed or implied, to make any commitment
or incur any obligations on behalf of the Supplier.

 

b         Territorial
Limitation.  Sales Representative shall neither advertise the Products outside the Territory nor solicit purchase orders from
outside the Territory without the prior written consent of Supplier. Sales Representative shall promptly submit to Supplier, for
Supplier's attention and handling, the originals of all inquiries received by Sales Representative from potential customers outside
the Territory.

 

c         Independent
Contractors.  The relationship of Supplier and Sales Representative established by this Agreement is that of independent contractors,
and nothing contained in this Agreement will be construed to give either party the power to direct or control the day-to-day activities
of the other. All financial and other obligations associated with Sales Representative's business are the sole responsibility of
Sales Representative. Neither Sales Representative nor any individual whose compensation for services is paid for by Sales

 

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Representative, is in any way employed by the
Supplier, nor will any of them be deemed to be employed by the Supplier for any purpose. Sales Representative accepts exclusive
liability for any and all payroll taxes or contributions according to Federal, state or local tax laws with respect to sales agents
and/or other individuals whose compensation is paid by Sales Representative.

 

3.           SALES
REPRESENTATIVES RESPONSIBILITIES

 

a         Promotion.
 Sales Representative shall use its best efforts to promote the sale of the Products in the Territory.

 

b         Competition.
 During the term of hereof, Sales Representative shall not promote, solicit, obtain orders for the sale of, distribute and/or sell
any products that are directly or indirectly competitive with the Products.

 

c         Promotional
Material.  Without the prior written consent of Supplier, Sales Representative shall not produce promotional advertising and/or
similar material to be used in connection with the sale of the Products other than such materials as may be provided by Supplier.
Supplier will retain all right, title, and interest in and to all promotional advertising, marketing, or similar materials that
it provides to Sales Representative.

 

d         Representation
and Warranties.  Sales Representative is not authorized to, and shall not, make any representations or warranties with respect
to the Products, except as expressly set forth in writing by Supplier, no representations or warranties are made with respect to
the Products.

 

e         Reports.
 At least one per calendar month, Sales Representative shall furnish the Company with a sales report for the previous month, which
sales report shall include a list of customer inquiries, contacts, orders, and sales for the previous month, and such other information
as Supplier may request from time to time. All such information shall be the property and confidential information of Supplier
and subject to the terms of Section 8 hereof.

 

f         Product
Complaints.  Sales Representative must report all product complaints and patient injuries within 24 hours of receiving such
information. Sales Representative will also use best efforts to provide customer feedback related to product safety, efficacy and
useability of the Products.

 

g         Compliance
with Laws.  Sales Representative shall comply with all applicable federal, state and local laws and regulations as well as all
applicable industry ethical codes and guidelines in performing its responsibilities hereunder.

 

h         No
Advice or Recommendations.  Sales Representative agrees that it shall not at any time provide any advice, guidance, or consultation
to any customer or potential customer regarding billing, reimbursement, or the location at which a patient should receive treatment.

 

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4.           COMMISSIONS

 

a         Amount
of Commission.  Sales Representative's sole compensation under the terms of this Agreement will be a commission computed in
accordance with this Section 3 and the schedule set forth in Exhibit B.

 

b         Basis
of Commission.  The commission will apply to all purchase orders solicited by Sales Representative from the Territory that have
been accepted by Supplier and for which shipment has occurred (a “Completed Order”). No commissions will be
paid on (i) purchase orders solicited by Supplier within the Territory from the reserved accounts listed in Exhibit C,
or (ii) purchase orders received from outside the Territory (even if Sales Representative receives the initial inquiry from
outside the Territory) unless otherwise agreed in writing by Supplier. Commissions will be computed on the amounts received by
Supplier from the customer, less (i) freight, packaging, handling or other shipment expenses; (ii) sales, use, value-added,
excise and other taxes; (iii) C.O.D. charges; (iv) insurance; (v) customs duties and other governmental charges;
(vi) cash or trade discounts; (vii) Product returns or credits; (viii) bad debt; and (ix) other similar costs
and expenses. No commission will be paid with respect to repairs or other services provided by Supplier to Sales Representative.

 

c         Payment
Terms.  The commission on a given purchase order will be due and payable net 30 days after the end of the calendar month in
which Supplier receives payment from the customer. Commissions will be earned and paid pro rata on partial payments received. Payment
of commissions will be subject to all applicable governmental regulations and rulings, including the withholding of any taxes required
by law.

 

d         Commission
Charge-Back.  Supplier may, in its sole discretion, set cash discounts, make such allowances and adjustments, accept such returns
from its customers, and write off as bad debts such overdue customer accounts. In each such case, Supplier may charge back to Sales
Representative's account any amounts previously paid or credited to it with respect to such cash discounts, allowances, adjustments,
returns or bad debts.

 

e         Statements.
 Supplier shall submit to Sales Representative periodic statements of the commissions due and payable to Sales Representative under
the terms of this Agreement, with reference to the specific invoices on which the commissions are being paid.

 

5.           SALE
OF THE PRODUCTS

 

a         Prices
and Terms of Sale.  Supplier shall provide Sales Representative with copies of its current price lists, its delivery schedules,
and its standard terms and conditions of sale, as established from time to time. Sales Representative shall quote to customers
only those authorized prices, delivery schedules, and other terms and conditions of sale. Supplier may alter at will the prices,
delivery schedules, and terms and conditions, provided only that it gives prior written notice to Sales Representative of any changes.
Each purchase order will be governed by Supplier's prices, delivery schedules, and other terms and conditions of sale in effect
at the time the purchase order is accepted by Supplier, and all quotations by Sales Representative must contain a statement to
that effect.

 

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b         Acceptance.
 All purchase orders obtained by Sales Representative will be subject to acceptance by Supplier at its principal office currently
located at the address listed for Supplier at the beginning of this Agreement, and all quotations by Sales Representative must
contain a statement to that effect. Sales Representative will have no authority to make any acceptance or delivery commitments
to customers. Supplier specifically reserves the right to reject any purchase order or any part thereof for any reason.

 

c         Credit
and Payment.  Supplier shall render all invoices directly to the customers and shall send copies of all invoices subject to
commission to Sales Representative. Payments will be made directly to Supplier.

 

6.           PRODUCT
WARRANTY AND PRODUCT AVAILABILITY

 

a         Product
Warranty.  Any warranty for the Products will run directly from Supplier to the customer. Sales Representative will have no
authority to accept any returned Products.

 

b         No
Other Warranties.  Sales Representative shall not make any representation, guarantee or warranty concerning the Products except
as expressly authorized in writing by Supplier.

 

c         DISCLAIMER.
 SUPPLIER MAKES NO WARRANTIES TO SALES REPRESENTATIVE, EXPRESS, STATUTORY, IMPLIED, OR OTHERWISE, AND SUPPLIER SPECIFICALLY DISCLAIMS
THE IMPLIED WARRANTIES AND CONDITIONS OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

 

7.           LIMITATION
ON LIABILITY 

SUPPLIER WILL NOT BE LIABLE TO SALES REPRESENTATIVE OR ANY THIRD
PARTY FOR COSTS OF PROCUREMENT OF SUBSTITUTE GOODS, LOST PROFITS OR ANY OTHER SPECIAL, CONSEQUENTIAL, INCIDENTAL, OR INDIRECT DAMAGES,
HOWEVER CAUSED, AND WHETHER BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE), PRODUCTS LIABILITY OR ANY OTHER THEORY OF LIABILITY,
REGARDLESS OF WHETHER SUPPLIER HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.

 

8.          CONFIDENTIALITY

Sales Representative acknowledges that by reason of its relationship
to Supplier hereunder it will have access to certain information and materials concerning Supplier's business, plans, customers,
technology, and products that are confidential and of substantial value to Supplier, which value would be impaired if such information
were disclosed to third parties. Sales Representative shall not use in any way for its own account or the account of any third
party other than to fulfill its express obligations under this Agreement, nor disclose to any third party, any such confidential
information revealed to it by Supplier. Sales Representative shall take every reasonable precaution to protect the confidentiality
of such information. Upon request by Sales Representative, Supplier shall advise whether or not it considers any particular information
or materials to be confidential. All marketing

 

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and financial information, business plans, and technical information
disclosed to Sales Representative by Supplier whether orally or in writing, and all customer lists, will be deemed confidential
information of Supplier. Sales Representative shall not publish any technical description of the Products beyond the description
published by Supplier. In the event of termination of this Agreement, there will be no use or disclosure by Sales Representative
of any confidential information of Supplier, and Sales Representative shall not manufacture or have manufactured any devices, components
or assemblies utilizing Supplier's confidential information.

 

9.           TRADEMARKS
AND TRADE NAMES

 

a         Trademarks.
 During the term of this Agreement, Sales Representative may indicate to the public that it is an authorized Sales Representative
of Supplier's Products and to advertise such Products under the trademarks, marks, and trade names of Supplier that Supplier may
adopt from time to time ("Supplier's Trademarks") and in the promotion of the Products; provided, however, that
upon 30 days prior written notice to Sales Representative, Supplier may substitute alternative marks for any or all of the Supplier's
Trademarks. All representations of Supplier's Trademarks that Sales Representative intends to use must first be submitted to Supplier
for approval (which must not be unreasonably withheld) of design, color and other details or will be exact copies of those used
by Supplier. In addition, Sales Representative shall fully comply with all reasonable guidelines, if any, communicated by Supplier
concerning the use of Supplier's Trademarks.

 

b         Use.
 Sales Representative shall not alter or remove any of Supplier's Trademarks affixed to the Products by Supplier. Except as set
forth in this Section 9, nothing contained in this Agreement will grant or will be deemed to grant to Sales Representative
any right, title or interest in or to Supplier's Trademarks. All uses of Supplier's Trademarks will inure solely to Supplier and
Sales Representative will obtain no rights with respect to any of Supplier's Trademarks, other than the right to distribute Products
as set forth herein, and Sales Representative irrevocably assigns to Supplier all such right, title and interest, if any, in any
of Supplier's Trademarks. At no time during or after the term of this Agreement shall Sales Representative challenge or assist
others to challenge Supplier's Trademarks (except to the extent expressly prohibited by applicable law) or the registration thereof
or attempt to register any trademarks, marks or trade names confusingly similar to those of Supplier.

 

10.         TERM
AND TERMINATION

 

a         Term.
 This Agreement will commence on the Effective Date and will remain in full force and effect for an initial term of one (1) year.
Thereafter, this Agreement shall automatically renew for additional one (1) year terms, unless terminated by either party upon
at least thirty (30) days written notice prior to the expiration of the then-current term.

 

b         Termination
for Convenience.  Either party may terminate this Agreement for any or no reason upon 30 days prior written notice to the other
party.

 

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c         Termination
for Cause.  If either party defaults in the performance of any provision of this Agreement, then the non-defaulting party may
give written notice to the defaulting party that if the default is not cured within 10 days, the Agreement will be terminated.
If the non-defaulting party gives such notice and the default is not cured during the thirty-day period, then the non-defaulting
party may terminate this Agreement by written notice effective immediately at the end of that period.

 

d         Additional
Commissions.  Upon termination, subject to all the provisions of this Agreement and to Sales Representative's compliance with
Section 10(e) below, Supplier shall pay commissions to Sales Representative on all purchase orders meeting all of the following
requirements: (i) the purchase order was solicited by Sales Representative, and (ii) the purchase order was accepted
by Supplier prior to the date of termination of this Agreement, and (iii) Supplier receives payment under the purchase order
within 90 days after the date of termination of this Agreement for use of the Product prior to the date of termination. Supplier's
obligation to pay commissions during any period after the effective date of termination is subject to and conditional upon Sales
Representative's cooperation with any replacement Sales Representative organization. If Supplier is owed any amounts by Sales Representative,
Supplier will have the right, in its absolute discretion, to offset any commission payable by Supplier to Sales Representative
by such obligation owed to Supplier by Sales Representative.

 

e         Return
of Materials.  All trademarks, trade names, patents, copyrights, designs, drawings, formulas or other data, financial information,
business plans, photographs, samples or demonstration units, literature, and sales aids of every kind will remain the property
of Supplier. No later than 30 days after the termination of this Agreement, Sales Representative shall prepare all such items in
its possession for shipment, as Supplier may direct, at Supplier's expense. Sales Representative shall not make or retain any copies
of any confidential items or information that may have been entrusted to it. Effective upon the termination of this Agreement,
Sales Representative shall cease to use Supplier's Trademarks. Any listing by Sales Representative of Supplier's name in any telephone
book, directory, public record or like publication will be removed by Sales Representative as soon as possible, but no later than
the subsequent issue of such publication.

 

f         Survival.
 The provisions of Sections 1, 3, 6, 7, 8, 9, 10, and 11 will survive the termination or expiration of this Agreement for any reason.
All other rights and obligations of the parties will cease upon termination of this Agreement.

 

11.         MISCELLANEOUS

 

a         Miscellaneous.
 No amendment or modification hereof will be valid or binding upon the parties unless made in writing and signed by the duly authorized
Sales Representatives of both parties. In the event that any provision or provisions of this Agreement will be held to be unenforceable,
this Agreement will continue in full force and effect without said provision and will be interpreted to reflect the original intent
of the parties. This Agreement will be governed by the laws of the State of Oregon, without regard to its conflict of laws principles.
The parties consent to the personal and exclusive jurisdiction of courts located in Oregon. Waiver by

 

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either party of a breach of any provision of this
Agreement or the failure by either party to exercise any right hereunder will not operate or be construed as a waiver of any subsequent
breach of that right or as a waiver of any other right.

  

b         Non-Assignability
and Binding Effect.  A mutually agreed consideration for Supplier's entering into this Agreement is the reputation, business
standing, and goodwill already honored and enjoyed by Sales Representative under its present ownership, and, accordingly, Sales
Representative agrees that its rights and obligations under this Agreement may not be transferred or assigned directly, indirectly
or by a change in control without Supplier's prior written consent. Subject to the foregoing, this Agreement will be binding upon
and inure to the benefit of the parties hereto, their successors and assigns.

 

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IN WITNESS WHEREOF, the parties hereto have caused their duly authorized
Sales Representatives to execute this Agreement, effective as of the Effective Date.

 

	AGREED BY SUPPLIER:	 	AGREED BY SALES REPRESENTATIVE:
	 	 	 
	SEMLER SCIENTIFIC, INC.	 	DOUG MURPHY-CHUTORIAN
	 	 	 	 	 
	Signature: 	/s/ Dan E. Conger	 	Signature: 	/s/ Doug Murphy-Chutorian

 

	Name: 	Daniel E. Conger	 	Name: 	Doug Murphy-Chutorian
	 	 	 	 	 
	Title: 	VP, Finance	 	Title: 	Chief Executive Officer

  

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EXHIBIT A

 

PRODUCTS AND TERRITORY

 

Products

FloChecTM
system

 

Territory

 

Worldwide

 

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EXHIBIT B

 

COMMISSION SCHEDULE

 

Sales Representative shall accrue the following commissions: 

 

		1.	For each calendar month during which this Agreement is effective, CEO will receive a $16,000.00 stipend.

 

		2.	For each of the products that are installed with a customer pursuant to a Completed Order, CEO will receive $15.00 per calendar
month during which the applicable customer has an active and effective service agreement with Supplier.

 

No Commission will be paid after one year from the termination
of this Agreement.

 

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EXHIBIT C

 

Reserved accounts in the Territory:

 

None

  

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                                                                                                                                                                                            PageExhibit 10.8

 

SEMLER
SCIENTIFIC, INCORPORATED

 

SERVICE
& SUPPLY AGREEMENT

 

THIS
SERVICE AND SUPPLY AGREEMENT (the “Agreement”) is
made and entered into as of April 28, 2011 (the “Effective
Date”) by and between Phoenix DeVentures, Inc., a California corporation with principal offices at 18655 Madrone
Pkwy Suite 180, Morgan Hill, CA 95037 (the “Supplier”),
and Semler Scientific Inc., a Oregon corporation with principal offices at 2330 NW Everett St, Portland, OR 97210 (“SSI”).

 

RECITALS

 

A.         WHEREAS,
the Supplier has significant experience in the design, development and manufacturing of medical devices; and

 

B.         WHEREAS,
SSI wishes to engage the Supplier as a manufacturer of certain SSI products, subject to the terms and conditions of this Agreement,
and wishes to set forth the terms and conditions under which it will purchase such products from the Supplier, and the Supplier
wishes to accept such engagement by SSI;

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the foregoing premises and the mutual covenants set forth herein, and intending to be legally bound,
THE PARTIES AGREE AS FOLLOWS:

 

		1)	Supplier
                                                                   Obligations.

 

		a)	The
                                                                  Supplier shall plan, purchase, inspect, manufacture, test, package,
                                                                  label, store, and ship the products set forth in Schedule
                                                                  1 attached hereto, as such schedule may be amended
                                                                  from time to time by mutual written agreement of the parties
                                                                  (each a “Product”)
                                                                  for SSI on a non-exclusive basis, in accordance with
                                                                  the terms and conditions set forth in this Agreement and with
                                                                  each Product’s Specifications (defined below). In addition,
                                                                  Supplier shall provide other services as described in this Agreement,
                                                                  including, but not limited to: Engineering Services, Document
                                                                  Control, Warehousing, and non-Product fulfillment.

 

		b)	Facility
                                                                  Registration.
                                                                  The Supplier shall maintain registration of any facility manufacturing
                                                                  any Products with the U.S. FDA and any other required State
                                                                  or Local agencies. The Supplier shall maintain its Quality System
                                                                  registrations with an accredited body in accordance with the
                                                                  U.S. FDA-QSR (Quality System Regulation), and other applicable
                                                                  State and Local regulations.

 

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		c)	Facility
                                                            Audit.
                                                            At mutually acceptable times, SSI may: (i) audit the areas of the
                                                            Supplier’s facility that directly affect the design, development,
                                                            manufacture, testing, packaging, labeling, storage, and shipment of
                                                            any Products; (ii) observe the design, development, manufacture, testing,
                                                            packaging, labeling, storage, and shipment of any Products; (iii)
                                                            observe any inspection of any such areas by the U.S. FDA or any other
                                                            regulatory or certification authorities; and (iv) inspect copies of
                                                            the manufacturing and related records for the purposes of assuring
                                                            quality of the Products and compliance with Specifications; provided
                                                            in each case that SSI is responsible for the acts of its own personnel
                                                            or any auditors, and that such personnel and auditors are subject
                                                            to the Supplier’s security requirements and confidentiality
                                                            restrictions.

 

		d)	Notification.
                                                                                                                            The
                                                                                                                            Supplier shall notify SSI within 1 week of: (i) any change in its
                                                                                                                            Quality System that relates to the Product; (ii) any change or loss
                                                                                                                            in certification status, including but not limited to changes in FDA/FDB registration(s) or ISO 13485 certification; (iii)
                                                                                                                            any new or changed                                                             instructions or specifications required by the
                                                                                                                            U.S. FDA or other applicable                                                             governmental or regulatory agencies
                                                                                                                            in the U.S. or any other jurisdictions                                                             in which SSI has informed
                                                                                                                            the Supplier any Products are intended for                                                             distribution, (iv) any
                                                                                                                            changes to the facilities used to manufacture                                                             Products, or (v)
                                                                                                                            Supplier files for liquidation, bankruptcy, reorganization,
                                                                                                                            compulsory composition, dissolution.

 

		e)	Supplier
                                                            shall maintain a minimum of two trained personnel for the manufacture
                                                            of Products.

 

		f)	Supplier
                                                            shall report SSI’s inventory (Products and SSI provided materials)
                                                            on a monthly basis by the 7th of each month. This report
                                                            shall include part number, description, and quantity. SSI shall have
                                                            the right to perform quarterly physical inventory of Products at Supplier’s
                                                            facility.

 

	2)		Engagement
                                                                                    Overview.

 

		a)	Quality
                                                            Agreement.
                                                            Responsibility, coordination, and execution of the Quality Requirements
                                                            set forth in Schedule
                                                            2 attached hereto, as such schedule may be amended from
                                                            time to time by mutual written agreement of the Parties.

 

		b)	Manufacturing
                                                            Services: Supplier shall plan, purchase, inspection, inventory, manufacture,
                                                            test, and warehouse finished Product. Supplier shall also provide
                                                            returned Product analysis & refurbishment services for the Products.
                                                            In support of these Manufacturing Services, Supplier shall also fulfill
                                                            all applicable quality requirements as outlined in Schedule 2.

 

		c)	Fulfillment
                                                            Services: Supplier shall ship Product upon orders from SSI. Additionally,
                                                            Supplier shall purchase, warehouse, and ship non-Product items (e.g.,
                                                            marketing & sales materials) as specified by and on the behalf
                                                            of SSI.

 

		d)	Engineering
                                                              Services: From time to time, SSI may request the Supplier to provide
                                                              process engineering, product development and modification, and other
                                                              services related to existing Products or new products in development,
                                                              other than the Manufacturing Services. Supplier may also propose
                                                              such Engineering Services to SSI. All Engineering Services will
                                                              be provided by the Supplier in accordance with the provisions listed
                                                              below.

 

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		e)	Document
                                                              Control Services: Supplier shall serve as SSI’s Document Control
                                                              departmental function. SSI shall use Suppliers procedures and forms
                                                              to initiate document changes. Supplier shall process SSI’s
                                                              document changes according to Suppliers normal procedure.

 

	3)		Specifications.

 

	a)		Specifications.

 

The
term “Specifications” shall mean, with respect to a Product, the Product’s
“Device Master Record” (“DMR”) within the meaning
of the Quality System Regulations (QSR) promulgated by the United States Food and Drug Administration (the “U.S.
FDA”) from time to time and all the information contained in such DMR, such as but not limited to: device
specifications (e.g. drawings, composition, formulation, and component specifications); production process specifications (e.g.
equipment specifications, production methods, production procedures, and production environment specifications); quality assurance
procedures and specifications (e.g. acceptance and reject criteria, test methods, and quality assurance equipment to be used);
and packaging and labeling specifications (e.g. labels and packaging to be used, and methods and processes to be used). The Specifications
comprise all documents transferred to the Supplier at the time of engagement.

 

	b)		Specification
                                                                                      Changes.

 

		i)	Either
                                                            party may request a “Specification Change” by submitting
                                                            a change request in accordance with the Supplier’s Quality System.

 

		ii)	All
                                                             Specification Changes must be approved by both parties, in writing,
                                                             in accordance with both party’s Quality Systems.

 

		iii)	All
                                                              Specification Changes must be validated and/or verified by the Supplier
                                                              as not affecting the ability of the Supplier to meet any other Specifications
                                                              in accordance with the Supplier’s Quality System.

 

	4)		Forecasts,
                                                                                    Orders, Prices, Invoicing & Payment.

 

		a)	Forecasts.
                                                                SSI shall provide Supplier a rolling non-binding 6-month forecast,
                                                                which is updated on a monthly basis. The initial forecast is provided
                                                                in Schedule 4.

 

		b)	Purchase
                                                                Orders.
                                                                SSI shall issue written Blanket Purchase Orders for its Product
                                                                requirements from time to time.

 

		c)	Order
                                                                                   Cancellation.

 

		i)	If
                                                            SSI cancels a Purchase Order after it has been accepted by the Supplier
                                                            other than as a result of any negligence, intentional misconduct,
                                                            or breach of this Agreement by the Supplier or on the Supplier’s
                                                            behalf, SSI shall pay the Supplier for completed Products made in
                                                            fulfillment of the cancelled Purchase Order and any raw materials
                                                            or work in progress inventory purchased for the fulfillment of the
                                                            cancelled Purchase Order, and all other non-cancellable costs or charges
                                                            to which the Supplier may become subject (provided that the Supplier
                                                            has used commercially reasonable efforts to minimize all such costs
                                                            and charges), including only the following:

 

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		(1)	Transfer
                                                             Cost to SSI for all such finished units of Products in the Supplier’s
                                                             possession per Schedule 1;

 

		(2)	Supplier’s
                                                             cost of all such inventory in the Supplier’s possession procured
                                                             for SSI under this Agreement and not accepted by the Supplier for
                                                             return (following a commercially reasonable attempt to return such
                                                             inventory at expense to SSI) or selected by the Supplier for use
                                                             with other customers, whether in raw form or work in progress;

 

		(3)	Purchase
                                                             Order cost of such inventory on order, not cancelable and not selected
                                                             by the Supplier for use with other customers, whether in raw form
                                                             or work in progress;

 

		(4)	Any
                                                             cancellation and restocking and other similar charges of the Supplier’s
                                                             vendors incurred by the Supplier with respect to any such inventory
                                                             accepted for cancellation or return by such vendors; and

 

		(5)	Costs
                                                             of labor (pro rata of Transfer Cost based on percent complete) incurred
                                                             by the Supplier related to such work in progress for SSI’s canceled
                                                             Purchase Order, and the storage, management, packaging, labeling,
                                                             processing, insurance, shipment, etc. of such inventory and work
                                                             in progress.

 

		ii)	The
                                                             Supplier shall prepare one or more statements invoicing cancellation
                                                             costs and such invoices shall be due and payable within thirty (30)
                                                             days of receipt by SSI. Upon
such payment, all finished units of Products and inventory (including raw materials and work in progress) shall be delivered to
and become the sole property of SSI.

 

		iii)	The
                                                              above liabilities shall be SSI’s sole and exclusive liability
                                                              for cancellation of a Purchase Order and, notwithstanding anything
                                                              herein to the contrary, under no condition shall SSI’s liability
                                                              exceed the purchase price of the cancelled Products.

 

		(1)	In
                                                             addition, SSI’s total liability of inventory shall be limited
                                                             to 3-months historical demand for each item.

 

		d)	Order
                                                                               Changes.

 

		i)	The
                                                            Supplier will make commercially reasonable efforts to accommodate
                                                            changes to SSI’s Purchase Orders, provided that the Supplier
                                                            shall notify SSI of the predicted costs of such accommodation, and
                                                            if SSI still desires the changes, SSI shall be liable to the Supplier
                                                            for the actual costs of such accommodation not to exceed the predicted
                                                            costs.

 

		ii)	The
                                                             Supplier will notify SSI immediately if it believes that it may be
                                                             unable to fulfill all or any portion of an accepted Purchase Order.

 

    	Mfg Supply Agreement v6.0 [CLEAN]	CONFIDENTIAL	Page 4 of 25

    	 

    

 

		e)	Packaging,
                                                            Shipping and Delivery.
                                                            The Supplier shall ship the Products in accordance with the Specifications
                                                            and any other packaging, labeling, and shipping instructions provided
                                                            by SSI. Unless otherwise specified in the Purchase Order, all Product
                                                            deliveries shall be shipped F.C.A. (Incoterms 2000) the Supplier’s
                                                            shipping point to the destination specified by SSI for delivery, and
                                                            the Supplier shall (at SSI’s request and reasonable expense)
                                                            insure such shipments against any loss or damage to the goods caused
                                                            during shipment. The Supplier shall not be liable for any costs or
                                                            expenses, which might be incurred by SSI as a result of any delays
                                                            in delivery by the shipper, unless caused by the negligence, intentional
                                                            misconduct, or failure to adhere to the Specifications or SSI’s
                                                            other shipping instructions of the Supplier or on the Supplier’s
                                                            behalf. Title and risk of loss to the Products shall pass to SSI upon
                                                            the Supplier’s delivery to the shipper.

 

		f)	Manufacturing
                                                                                      Services:

 

		i)	For
                                                            the first three lots (“Qualification Lots”), Supplier
                                                            shall invoice SSI on a time and materials basis. Invoices shall indicate
                                                            part number, the number of Product units, hours & rate, and extended
                                                            cost for each Product. At the conclusion of the Qualification Lots,
                                                            the Parties shall negotiate in good faith to complete the monetary
                                                            parts of Schedule 1, which shall serve as an addendum to this Agreement.

 

		ii)	Thereafter,
                                                             the Supplier shall issue invoices to SSI on a calendar monthly basis
                                                             for Manufacturing Services. The Manufacturing Services will be billed
                                                             based on the number of Products manufactured and put to stock (net
                                                             of yield) during the calendar month and the Transfer Cost per Schedule
                                                             1. Invoices shall indicate part number, the number of Product units,
                                                             respective Transfer Cost, and extended cost for each Product.

 

		(1)	The
                                                             parties agree to review Transfer Cost promptly after the second month
                                                             of invoicing on a per unit basis and negotiate in good faith any
                                                             cost changes caused by labor, overhead, or materials.

 

		iii)	In
                                                              the event SSI provides materials, Supplier shall provide a credit
                                                              memo for the mutually agreed upon value of such materials. To the
                                                              degree possible & practicable, supplied materials will be credited
                                                              toward the Product (as listed in Schedule 1) to which the material
                                                              belongs (“Product Total Credit”). The cost of the supplied
                                                              materials by Product may be determined by summing the product of
                                                              unit cost and usage (“Product Unit Credit”). This Product
                                                              Unit Credit shall be applied to each unit invoiced until the Product
                                                              Total Credit is exhausted. If supplied materials that are scrapped,
                                                              obsoleted, or replaced with another material at the direction of
                                                              SSI the representative amount shall be removed from the Product
                                                              Total Credit, and the Product Unit Credit shall be updated.

 

		(1)	For
                                                             example, if SSI provides several different materials to assemble
                                                             the Sensor, which aggregate to $2500 and $25 per sensor, the Product
                                                             Unit Credit would be $25 per sensor and would apply for 100 sensors.

 

		iv)	Supplier
                                                             shall not exceed and SSI’s maximum liability shall be limited
                                                             by the maximum inventory targets established in Schedule 1.

 

    	Mfg Supply Agreement v6.0 [CLEAN]	CONFIDENTIAL	Page 5 of 25

    	 

    

  

		v)	Returned
                                                            Product Analysis and Refurbishment shall be performed on a time and
                                                            materials basis per Schedule 3.

 

		g)	Fulfillment
                                                                               Services

 

		i)	Unless
                                                            otherwise specified, Supplier shall use SSF's shipping accounts.

 

		ii)	Supplier
                                                             shall provide appropriate warehousing with appropriate security and
                                                             environmental conditions, considering the goods. The Fulfillment
                                                             Services shall include 192 cubic feet (e.g., a 3’ x 8’
                                                             x 8’ rack) of storage. Space beyond that will be invoiced at
                                                             a rate of $0.375 per cubic foot.

 

		iii)	The
                                                              Supplier shall issue invoices to SSI on a calendar monthly basis
                                                              for Fulfillment Services. The Fulfillment Services will be billed
                                                              based on the number of shipments during the calendar month at the
                                                              rate as detailed in Schedule 1. Invoices shall clearly indicate
                                                              the number of shipments, per Shipment Cost, and extended cost.

 

	h)		Engineering
                                                                                     Services:

 

		i)	Prior
                                                            to commencement of any Engineering Services, the Supplier shall provide
                                                            SSI an estimate of all fees, costs, and expenses to SSI for all Services,
                                                            which shall include a description of the Engineering Services to be
                                                            performed, number of hours, and billing rate.

 

		ii)	SSI’s
                                                             approval of the Engineering Services will be through the issue of
                                                             a SSI purchase order.

 

		iii)	Supplier
                                                              shall notify SSI prior to commencing any Engineering Services when
                                                              significant changes (+20% of estimate) in fees, costs, or expenses
                                                              are anticipated. In such an event, SSI shall have the option to
                                                              approve in writing the excess expenses.

 

		iv)	Under
                                                             no circumstance will SSI be financially liable to the Supplier or
                                                             any other person or entity for more than the SSI approved fees, costs,
                                                             and expenses, as expressed on the purchase order for such Engineering
                                                             Services.

 

		v)	The
                                                            Supplier shall issue invoices to SSI on a weekly basis for any accrued
                                                            Engineering Services. The Engineering Services will be billed on the
                                                            “percent-of-completion” basis with payment due within
                                                            thirty (30) days of receipt of an invoice.

 

		vi)	Engineering
                                                             Services shall be performed on a time and materials basis, according
                                                             to the rates detailed in Schedule 3.

 

	i)		Document
                                                                              Control Services

 

		i)	The
                                                            Supplier shall issue invoices to SSI on a calendar monthly basis for
                                                            Document Control Services. The Document Control Services will be billed
                                                            based on the number of hours during the calendar month and the Transfer
                                                            Cost per Schedule 3. Invoices shall clearly indicate the number of
                                                            hours, billing rate, and extended cost.

 

    	Mfg Supply Agreement v6.0 [CLEAN]	CONFIDENTIAL	Page 6 of 25

    	 

    

  

		j)	Forms.
                                                            SSI
                                                            expressly rejects all terms and conditions with respect to any order
                                                            for or delivery of any Products proposed by the Supplier (through
                                                            a preprinted invoice or packing slip or otherwise) that are different
                                                            from or in addition to those contained in this Agreement and to which
                                                            SSI does not expressly agree in a writing identifying the specific
                                                            terms and conditions agreed upon and signed by an authorized representative
                                                            of SSI, and such terms and conditions shall not become a part of this
                                                            Agreement or such order.

 

	5)		Specific
                                                                                     Manufacturing Quality Requirements.

 

		a)	Traceability.

 

		i)	The
                                                            Supplier shall maintain inventory, work order, and distribution systems
                                                            such that complete lot and serial number traceability can be maintained
                                                            for lot and serial number controlled components and Products as specified
                                                            in the Specifications.

 

		b)	Quality
                                                            Records.

 

		i)	Supplier
                                                            shall maintain all quality records associated with the services provided
                                                            under this Agreement in compliance with all applicable regulatory
                                                            requirements. Such records, include, but are not limited to: Device
                                                            Master Records, purchasing records, receiving inspection records,
                                                            Lot History Records, in-process and final inspection records, shipping
                                                            records, material review board, non-conforming material records, corrective
                                                            and preventive action records, and document changes. Supplier shall
                                                            make quality records available to SSI within 48-hrs of request.

 

		ii)	Supplier
                                                             shall retain records of manufacture of all Products for no less than
                                                             five (5) years after such manufacture, after which Supplier shall
                                                             records are returned to SSI or disposed of, whichever SSI prefers.
                                                             Records shall be maintained according to the Supplier’s Quality
                                                             System requirements.

 

		iii)	Supplier
                                                              shall provide SSI quarterly quality reports on the following that
                                                              relate the Product: number of Products built, number of Products
                                                              shipped, number & nature of CAPAs, Pareto analysis of non-conformances,
                                                              Pareto analysis on in-process & final yield, and Pareto analysis
                                                              on complaint analysis.

 

	6)		Post
                                                                                     market responsibilities.

 

		a)	SSI
                                                            will initiate and Supplier will investigate and handle complaints
                                                            and Product returns from end-users regarding any Products.

 

		b)	The
                                                            Supplier shall complete the returned Product investigation in a timely
                                                            manner.

 

		c)	SSI
                                                            is responsible for conducting product recalls of all Products, which
                                                            SSI will control in its sole and absolute discretion. SSI will reimburse
                                                            the Supplier for all reasonable, out-of-pocket direct costs and expenses
                                                            incurred by the Supplier in cooperation of such recall except if the
                                                            recall was due to negligence, intentional misconduct, or failure to
                                                            meet any Specifications of the Supplier or on the Supplier’s
                                                            behalf, in which case the Supplier shall reimburse SSI for all reasonable,
                                                            out-of-pocket direct costs and expenses of such recall.

 

		d)	The
                                                            Supplier is responsible for maintaining manufacturing, inventory,
                                                            and distribution identification and traceability records of all Products
                                                            and to make such records available to SSI if needed for any recall
                                                            or advisory notices.

 

    	Mfg Supply Agreement v6.0 [CLEAN]	CONFIDENTIAL	Page 7 of 25

    	 

    

 

		7)	Tools
                                                                and Fixtures.
                                                                SSI may purchase some tooling and fixtures that are required for
                                                                development and production of any Products which the Supplier
                                                                does not own. All such tooling and fixtures shall be for SSI's
                                                                exclusive use unless otherwise agreed upon by both parties in
                                                                writing. Such tooling and fixtures shall be owned by SSI and identified
                                                                as SSI assets consigned to the Supplier.

 

	8)		Limited
                                                                                     Warranties.

 

		a)	General
                                                            Warranty.
                                                            The Supplier warrants to SSI that: (i) the Supplier shall perform
                                                            the Services and its other obligations hereunder in a professional
                                                            manner, in conformity with the Supplier’s written specifications
                                                            or instructions, and in compliance with all applicable laws and regulations;
                                                            (ii) the Supplier has all requisite authority and permits to enter
                                                            into, deliver, and perform its obligations under this Agreement; and
                                                            (iii) this Agreement does not conflict with any contractual commitment
                                                            or other legal obligation of the Supplier.

 

		b)	Product
                                                                                                                            Warranty.
                                                                                                                            The
                                                                                                                            Supplier
                                                                                                                            warrants
                                                                                                                            to
                                                                                                                            SSI
                                                                                                                            that
                                                                                                                            each
                                                                                                                            unit
                                                                                                                            of
                                                                                                                            the
                                                                                                                            Products
                                                                                                                            shall
                                                                                                                            be
                                                                                                                            manufactured,
                                                                                                                            tested,
                                                                                                                            packaged,
                                                                                                                            labeled,
                                                                                                                            and
                                                                                                                            stored
                                                                                                                            in
                                                                                                                            accordance
                                                                                                                            with
                                                                                                                            the
                                                                                                                            procedures
                                                                                                                            set
                                                                                                                            forth
                                                                                                                            in
                                                                                                                            the
                                                                                                                            Specifications
                                                                                                                            and
                                                                                                                            the
                                                                                                                            Supplier’s
                                                                                                                            Quality
                                                                                                                            System,
                                                                                                                            shall
                                                                                                                            be
                                                                                                                            free
                                                                                                                            from
                                                                                                                            defects
                                                                                                                            in
                                                                                                                            materials
                                                                                                                            and
                                                                                                                            workmanship,
                                                                                                                            and
                                                                                                                            shall
                                                                                                                            conform
                                                                                                                            to
                                                                                                                            all
                                                                                                                            applicable
                                                                                                                            Specifications
                                                                                                                            for
                                                                                                                            a
                                                                                                                            period
                                                                                                                            of
                                                                                                                            two
                                                                                                                            (2)
                                                                                                                            years
                                                                                                                            commencing
                                                                                                                            from
                                                                                                                            the
                                                                                                                            date
                                                                                                                            of
                                                                                                                            manufacture
                                                                                                                            of
                                                                                                                            such
                                                                                                                            unit
                                                                                                                            by
                                                                                                                            or
                                                                                                                            on
                                                                                                                            behalf
                                                                                                                            of
                                                                                                                            the
                                                                                                                            Supplier
                                                                                                                            (the
                                                                                                                            “Product
                                                                                                                            Warranty
                                                                                                                            Period”).
                                                                                                                            This
                                                                                                                            Product
                                                                                                                            warranty
                                                                                                                            shall
                                                                                                                            apply
                                                                                                                            provided;

 

		i)	SSI
                                                            notifies the Supplier in writing within thirty (30) days after discovering
                                                            or being made aware of a defect or non-conformity;

 

		ii)	the
                                                             defective/non-conforming units of Product are returned to the Supplier
                                                             no later than thirty (30) days following the expiration of the Product
                                                             Warranty Period;

 

		iii)	this
                                                              Product warranty in no case shall exceed the standard shelf life
                                                              for the applicable Product; and

 

		iv)	this
                                                             Product warranty shall not include or cover defects that can be shown
                                                             to result from errors in Specifications or Specification Changes
                                                             approved by SSI;

 

		v)	this
                                                            Product warranty shall be null and void as to any unit of Product
                                                            if such unit is abused, used in contravention of the applicable Specifications,
                                                            modified by any person or entity other than the Supplier, damaged
                                                            after being shipped by the Supplier due to an accident, Act of God
                                                            or otherwise, is placed in an unsuitable physical or operating environment
                                                            by any person or entity other than the Supplier, is not properly maintained
                                                            by any person or entity other than the Supplier, or fails due to use
                                                            by any person or entity other than the Supplier with products not
                                                            described in the Specifications;

 

		vi)	at
                                                             the end of the Product Warranty Period, this Product warranty will
                                                             expire and any liability of the Supplier under this Product warranty,
                                                             in relation to any units of Products for which warranty claims are
                                                             not made during the Product Warranty Period will terminate.

 

    	Mfg Supply Agreement v6.0 [CLEAN]	CONFIDENTIAL	Page 8 of 25

    	 

    

 

		c)	Limitation
                                                            of Liability.
                                                            Except for claims arising out of the Supplier’s negligence or
                                                            intentional misconduct, SSI’s sole and exclusive remedy in the
                                                            event of a breach of the Product warranty above shall be (i) repair
                                                            or, at the SSI’s sole discretion, replacement of the affected
                                                            units of Product at the Suppliers cost, in either of which cases,
                                                            the Product Warranty Period shall expire on the date that is two (2)
                                                            years from the date the repaired or replaced units of Product were
                                                            manufactured by or on behalf of the Supplier or (ii) if the Supplier
                                                            is unable to repair the affected units so that they are no longer
                                                            defective or non-conforming or replace the affected units with units
                                                            that are not defective or non-conforming within thirty (30) days
                                                            from the date the warranty claim is made, a full refund of all amounts
                                                            paid by SSI for such units. This paragraph is not intended, and shall
                                                            not be construed, to limit the Supplier’s liability or SSI’s
                                                            rights with respect to an investigation or recall under Section 6
                                                            or any indemnification under Section 10 below.

 

	9)		Confidentiality.

 

		a)	General
                                                                                                                            Obligation.
                                                                                                                            All
                                                                                                                            information
                                                                                                                            provided
                                                                                                                            by
                                                                                                                            either
                                                                                                                            party
                                                                                                                            (“Disclosing
                                                                                                                            Party”)
                                                                                                                            to
                                                                                                                            the
                                                                                                                            other
                                                                                                                            party
                                                                                                                            (“Recipient”)
                                                                                                                            shall
                                                                                                                            be
                                                                                                                            governed
                                                                                                                            by
                                                                                                                            this
                                                                                                                            Section.

 

		b)	Proprietary
                                                            Information.
                                                            The term “Proprietary
                                                            Information” shall mean: (i) all trade secrets or
                                                            confidential or proprietary information designated as such in writing
                                                            by the Disclosing Party, prior to or at the time any such trade secret,
                                                            confidential or proprietary information initially is disclosed by
                                                            the Disclosing Party to the Recipient; and (ii) all other information
                                                            that is otherwise disclosed in circumstances of confidence or should
                                                            be understood by the Recipient, exercising reasonable business judgment,
                                                            to be a trade secret, confidential, or proprietary. Without limiting
                                                            the generality of the foregoing: (x) all information that is disclosed
                                                            without an appropriate proprietary designation shall constitute Proprietary
                                                            Information if the Disclosing Party, within thirty (30) days after
                                                            such disclosure, delivers to the Recipient a written document or documents
                                                            describing such Proprietary Information and referencing the place
                                                            and date of such disclosure and the names of the employees or officers
                                                            of the Recipient to whom such disclosure was made; and (y) all Work
                                                            Product shall be deemed to be SSI’s Proprietary Information
                                                            from the moment of its creation, for which SSI is the Disclosing Party
                                                            and the Supplier is the Recipient hereunder, whether or not it actually
                                                            has been disclosed to or by SSI. The Recipient acknowledges that Proprietary
                                                            Information of the Disclosing Party may include, without limitation,
                                                            information regarding the Intellectual Property, proposed products,
                                                            research or development activities, marketing plans, business plans,
                                                            specifications, costs of production, prices, volume of sales, actual
                                                            or prospective customers and suppliers, personnel, business opportunities,
                                                            or financial condition of the Disclosing Party or its licensors, licensees,
                                                            customers, suppliers, consultants, or other contracting parties.

 

    	Mfg Supply Agreement v6.0 [CLEAN]	CONFIDENTIAL	Page 9 of 25

    	 

    

 

		c)	Disclosure.
                                                           The
                                                           Recipient shall hold in confidence, and shall not disclose to any person
                                                           outside its organization, any Proprietary Information. The Recipient
                                                           shall use such Proprietary Information only for the purpose of fulfilling
                                                           its obligations or exercising its rights under this Agreement and shall
                                                           not use such Proprietary Information for any other purpose, for its
                                                           own benefit, or the benefit of any other person or entity without the
                                                           prior written consent of the Disclosing Party, which may be withheld
                                                           in the Disclosing Party’s sole and absolute discretion. The Recipient
                                                           shall disclose Proprietary Information received by it only to persons
                                                           within its organization who have a need to know such Proprietary Information
                                                           in the course of the performance of their duties under this Agreement,
                                                           are informed of the confidentiality of the Proprietary Information,
                                                           and are legally bound to protect the confidentiality of such Proprietary
                                                           Information.

 

	d)		Limitation
                                                                              on Obligations.

 

		i)	The
                                                            obligations of the Recipient specified above shall not apply, and
                                                            the Recipient shall have no further obligations, with respect to any
                                                            Proprietary Information to the extent that such Proprietary Information:

 

		(1)	is
                                                             generally known to the public at the time of initial disclosure by
                                                             the Disclosing Party to the Recipient (or, in the case of any Work
                                                             Product, at the time of initial development by the Supplier) or becomes
                                                             generally known through no wrongful act on the part of the Recipient
                                                             at the time of an alleged breach hereof;

 

		(2)	is
                                                             in the Recipient's possession at the time of disclosure free of any
                                                             confidentiality, fiduciary, or similar obligation, otherwise than
                                                             as a result of Recipient's breach of any confidentiality, fiduciary,
                                                             or other legal obligation, provided that this exception shall not
                                                             apply where the Recipient is the Supplier and the Proprietary Information
                                                             is any Work Product; or

 

		(3)	becomes
                                                             known to the Recipient free of any confidentiality, fiduciary, or
                                                             similar obligation through disclosure by sources other than the Disclosing
                                                             Party having the legal right to disclose such Proprietary Information
                                                             without any such obligations.

 

		ii)	This
                                                             Section shall not be construed as prohibiting the independent development
                                                             of any information by or for Recipient by persons without access
                                                             or reference to, or reliance upon, the Proprietary Information.

 

		iii)	Notwithstanding
                                                              anything in this Agreement to the contrary, the Recipient may disclose
                                                              Proprietary Information to the extent necessary to comply with applicable
                                                              laws or governmental regulations, provided that the Recipient provides
                                                              prior written notice of such disclosure to the Disclosing Party
                                                              and takes reasonable and lawful actions to avoid and/or minimize
                                                              the extent of such disclosure or cooperates with the Disclosing
                                                              Party’s attempts to do so (in each case at the expense of
                                                              the Disclosing Party for the Recipient’s reasonable, out-of-pocket
                                                              direct costs and expenses).

 

    	Mfg Supply Agreement v6.0 [CLEAN]	CONFIDENTIAL	Page 10 of 25

    	 

    

  

		e)	Ownership
                                                            of Proprietary Information.
                                                            The Recipient agrees that, except as otherwise set forth in this Agreement
                                                            (including without limitation Section 9(d) above), as between the
                                                            Recipient and the Disclosing Party, the Disclosing Party is and shall
                                                            remain the exclusive owner of its Proprietary Information and all
                                                            Intellectual Property embodied therein.

 

		f)	Return
                                                            of Documents.
                                                            The Recipient shall, upon the request of the Disclosing Party, return
                                                            to the Disclosing Party all tangible manifestations of Proprietary
                                                            Information received by the Recipient (and all copies and reproductions
                                                            thereof) in the Recipient’s possession and shall erase all digital
                                                            records of Proprietary Information received or created by the Recipient
                                                            and in the Recipient’s possession; provided that the Recipient’s
                                                            attorneys may keep one archival copy of the same for the sole purpose
                                                            of evidencing the information provided and provided further that Recipient
                                                            may retain copies of Proprietary Information solely to the extent
                                                            required by applicable law (such as but not limited to the U.S. FDA-QSR).

 

	10)		Indemnification.

 

		a)	To
                                                            the extent Supplier provides services associated SSI’s Quality
                                                            System in the capacity as SSI’s Regulatory function (“Regulatory
                                                            Services”) SSI absolves Supplier of any liabilities. SSI shall
                                                            indemnify and hold Supplier harmless from and against all losses,
                                                            liabilities, damages and expenses (including reasonable attorneys’
                                                            fees and costs) resulting from all claims, demands, actions and other
                                                            proceedings by any third party arising from such Regulatory Services.

 

		b)	SSI
                                                                                                                            Indemnification
                                                                                                                            of
                                                                                                                            the
                                                                                                                            Supplier.
                                                                                                                            SSI
                                                                                                                            shall
                                                                                                                            defend
                                                                                                                            and
                                                                                                                            hold
                                                                                                                            harmless
                                                                                                                            the
                                                                                                                            Supplier
                                                                                                                            and
                                                                                                                            its
                                                                                                                            officers,
                                                                                                                            directors,
                                                                                                                            and
                                                                                                                            employees,
                                                                                                                            from
                                                                                                                            and
                                                                                                                            against
                                                                                                                            any
                                                                                                                            and
                                                                                                                            all
                                                                                                                            claims,
                                                                                                                            demands,
                                                                                                                            causes
                                                                                                                            of
                                                                                                                            action,
                                                                                                                            suits,
                                                                                                                            or
                                                                                                                            proceedings
                                                                                                                            brought
                                                                                                                            by
                                                                                                                            a
                                                                                                                            third
                                                                                                                            party
                                                                                                                            (each
                                                                                                                            a
                                                                                                                            “Third
                                                                                                                            Party
                                                                                                                            Claim”)
                                                                                                                            and
                                                                                                                            will
                                                                                                                            indemnify
                                                                                                                            and
                                                                                                                            hold
                                                                                                                            harmless
                                                                                                                            each
                                                                                                                            of
                                                                                                                            the
                                                                                                                            foregoing
                                                                                                                            from
                                                                                                                            and
                                                                                                                            against
                                                                                                                            any
                                                                                                                            and
                                                                                                                            all
                                                                                                                            Losses
                                                                                                                            that
                                                                                                                            result
                                                                                                                            from
                                                                                                                            such
                                                                                                                            Third
                                                                                                                            Party
                                                                                                                            Claims,
                                                                                                                            in
                                                                                                                            each
                                                                                                                            case
                                                                                                                            only
                                                                                                                            to
                                                                                                                            the
                                                                                                                            extent
                                                                                                                            that
                                                                                                                            such
                                                                                                                            Third
                                                                                                                            Party
                                                                                                                            Claims
                                                                                                                            and
                                                                                                                            corresponding
                                                                                                                            Losses
                                                                                                                            are
                                                                                                                            based
                                                                                                                            upon
                                                                                                                            allegations
                                                                                                                            that:

 

		i)	there
                                                            exists a defect in the design specified by SSI to the Supplier of
                                                            any Products (including a defect in any materials existing as of the
                                                            time such materials were provided to the Supplier by a third party
                                                            with respect to which materials SSI’s Specifications required to be
                                                            purchased from such third party, unless such defect was not detected
                                                            by the Supplier as a result of the negligence, intentional misconduct,
                                                            or failure to adhere to the Specifications or the Supplier’s
                                                            Quality System, of the Supplier or on its behalf);

 

		ii)	the
                                                             manufacture, sale, or use of any Product in accordance with its Specifications,
                                                             infringes a patent, copyright, trade secret or other proprietary
                                                             right of a third party, except as provided in Section 10(b) below;
                                                             or

 

		iii)	are
                                                              based upon any death, injury to any person, or damage to any property
                                                              if alleged or found to be caused by any Product, unless such death,
                                                              injury, or damage is alleged or found to have resulted from the
                                                              negligence, intentional misconduct, or failure to adhere to the
                                                              Specifications or the Supplier’s Quality System, of the Supplier
                                                              or on its behalf.

 

    	Mfg Supply Agreement v6.0 [CLEAN]	CONFIDENTIAL	Page 11 of 25

    	 

    

  

		c)	Supplier
                                                            Indemnification of SSI.
                                                            The Supplier shall defend and hold harmless SSI and its officers,
                                                            directors, employees, and agents from and against any and all Third
                                                            Party Claims and shall indemnify and hold harmless each of the foregoing
                                                            from and against any Losses resulting from such Third Party Claims,
                                                            in each case only to the extent that such claim and corresponding
                                                            Losses are based upon allegations that:

 

		i)	if
                                                            true, would constitute a breach of any of the Supplier’s representations,
                                                            warranties, or covenants in this Agreement or any Certificate of Conformance;

 

		ii)	the
                                                             performance of any Services or the manufacturing, testing, packaging,
                                                             labeling, storage, or other processes used by the Supplier or on
                                                             its behalf (other than as a necessary result of an instruction from
                                                             SSI) infringe the Intellectual Property of a third party; or

 

		iii)	are
                                                              based upon any death, injury to any person, or damage to any property
                                                              alleged or found to have resulted from the negligence, intentional
                                                              misconduct, or failure to adhere to the Specifications or the Supplier’s
                                                              Quality System, of the Supplier or on its behalf.

 

		d)	Indemnification
                                                                                                                            Procedure.
                                                                                                                            A
                                                                                                                            party
                                                                                                                            claiming
                                                                                                                            indemnification
                                                                                                                            (each
                                                                                                                            an
                                                                                                                            “Indemnified
                                                                                                                            Party”)
                                                                                                                            shall
                                                                                                                            provide
                                                                                                                            prompt
                                                                                                                            written
                                                                                                                            notice
                                                                                                                            to
                                                                                                                            the
                                                                                                                            other
                                                                                                                            party
                                                                                                                            (each
                                                                                                                            an
                                                                                                                            “Indemnifying
                                                                                                                            Party”)
                                                                                                                            of
                                                                                                                            any
                                                                                                                            and
                                                                                                                            all
                                                                                                                            Third
                                                                                                                            Party
                                                                                                                            Claims
                                                                                                                            for
                                                                                                                            which
                                                                                                                            indemnification
                                                                                                                            is
                                                                                                                            sought
                                                                                                                            and
                                                                                                                            all
                                                                                                                            notices,
                                                                                                                            claims,
                                                                                                                            demands,
                                                                                                                            pleadings,
                                                                                                                            and
                                                                                                                            other
                                                                                                                            facts
                                                                                                                            or
                                                                                                                            circumstances
                                                                                                                            that
                                                                                                                            may,
                                                                                                                            in
                                                                                                                            the
                                                                                                                            Indemnified
                                                                                                                            Party’s
                                                                                                                            reasonable
                                                                                                                            judgment,
                                                                                                                            be
                                                                                                                            likely
                                                                                                                            to
                                                                                                                            result
                                                                                                                            in
                                                                                                                            a
                                                                                                                            claim
                                                                                                                            for
                                                                                                                            indemnification.
                                                                                                                            The
                                                                                                                            Indemnified
                                                                                                                            Party’s
                                                                                                                            failure
                                                                                                                            to
                                                                                                                            provide
                                                                                                                            such
                                                                                                                            prompt
                                                                                                                            written
                                                                                                                            notice
                                                                                                                            shall
                                                                                                                            reduce
                                                                                                                            the
                                                                                                                            indemnification
                                                                                                                            obligation
                                                                                                                            of
                                                                                                                            the
                                                                                                                            Indemnifying
                                                                                                                            Party
                                                                                                                            to
                                                                                                                            the
                                                                                                                            extent
                                                                                                                            that
                                                                                                                            such
                                                                                                                            failure
                                                                                                                            resulted
                                                                                                                            in
                                                                                                                            demonstrable
                                                                                                                            prejudice
                                                                                                                            to
                                                                                                                            the
                                                                                                                            Indemnifying
                                                                                                                            Party.
                                                                                                                            The
                                                                                                                            Indemnified
                                                                                                                            Party
                                                                                                                            shall
                                                                                                                            promptly
                                                                                                                            tender
                                                                                                                            defense
                                                                                                                            of
                                                                                                                            any
                                                                                                                            litigation
                                                                                                                            or
                                                                                                                            other
                                                                                                                            formal
                                                                                                                            dispute
                                                                                                                            to
                                                                                                                            the
                                                                                                                            Indemnifying
                                                                                                                            Party,
                                                                                                                            and
                                                                                                                            the
                                                                                                                            Indemnifying
                                                                                                                            Party
                                                                                                                            shall
                                                                                                                            select
                                                                                                                            counsel
                                                                                                                            of
                                                                                                                            its
                                                                                                                            choice,
                                                                                                                            reasonably
                                                                                                                            acceptable
                                                                                                                            to
                                                                                                                            the
                                                                                                                            Indemnified
                                                                                                                            Party
                                                                                                                            for
                                                                                                                            such
                                                                                                                            litigation
                                                                                                                            or
                                                                                                                            dispute.
                                                                                                                            The
                                                                                                                            Indemnified
                                                                                                                            Party
                                                                                                                            shall
                                                                                                                            cooperate
                                                                                                                            completely
                                                                                                                            with
                                                                                                                            the
                                                                                                                            Indemnifying
                                                                                                                            Party,
                                                                                                                            including
                                                                                                                            without
                                                                                                                            limitation
                                                                                                                            providing
                                                                                                                            timely
                                                                                                                            responses
                                                                                                                            to
                                                                                                                            all
                                                                                                                            discovery
                                                                                                                            requests
                                                                                                                            and
                                                                                                                            providing
                                                                                                                            expert
                                                                                                                            and
                                                                                                                            factual
                                                                                                                            witnesses
                                                                                                                            as
                                                                                                                            necessary
                                                                                                                            or
                                                                                                                            desirable.
                                                                                                                            The
                                                                                                                            Indemnifying
                                                                                                                            Party
                                                                                                                            shall
                                                                                                                            have
                                                                                                                            the
                                                                                                                            sole
                                                                                                                            authority
                                                                                                                            to
                                                                                                                            negotiate
                                                                                                                            and
                                                                                                                            settle
                                                                                                                            such
                                                                                                                            claims
                                                                                                                            to
                                                                                                                            the
                                                                                                                            extent
                                                                                                                            of
                                                                                                                            the
                                                                                                                            applicable
                                                                                                                            indemnification
                                                                                                                            obligation,
                                                                                                                            provided
                                                                                                                            that
                                                                                                                            any
                                                                                                                            such
                                                                                                                            settlement
                                                                                                                            that
                                                                                                                            does
                                                                                                                            not
                                                                                                                            include
                                                                                                                            a
                                                                                                                            full
                                                                                                                            and
                                                                                                                            irrevocable
                                                                                                                            release
                                                                                                                            of
                                                                                                                            all
                                                                                                                            known
                                                                                                                            and
                                                                                                                            unknown
                                                                                                                            claims
                                                                                                                            against
                                                                                                                            any
                                                                                                                            and
                                                                                                                            all
                                                                                                                            Indemnified
                                                                                                                            Parties
                                                                                                                            is
                                                                                                                            otherwise
                                                                                                                            reasonably
                                                                                                                            acceptable
                                                                                                                            in
                                                                                                                            form
                                                                                                                            and
                                                                                                                            substance
                                                                                                                            to
                                                                                                                            the
                                                                                                                            Indemnified
                                                                                                                            Parties.
                                                                                                                            If
                                                                                                                            any
                                                                                                                            Indemnified
                                                                                                                            Party
                                                                                                                            does
                                                                                                                            not
                                                                                                                            agree
                                                                                                                            to
                                                                                                                            any
                                                                                                                            settlement
                                                                                                                            proposed
                                                                                                                            by
                                                                                                                            the
                                                                                                                            Indemnifying
                                                                                                                            Party,
                                                                                                                            the
                                                                                                                            Indemnifying
                                                                                                                            Party
                                                                                                                            shall
                                                                                                                            thereafter
                                                                                                                            be
                                                                                                                            liable
                                                                                                                            to
                                                                                                                            such
                                                                                                                            Indemnified
                                                                                                                            Party
                                                                                                                            only
                                                                                                                            up
                                                                                                                            to
                                                                                                                            the
                                                                                                                            monetary
                                                                                                                            amount
                                                                                                                            of
                                                                                                                            the
                                                                                                                            proposed
                                                                                                                            settlement.

 

	11)		Term
                                                                                      and Termination.

 

		a)	Term:
                                                            This
                                                            Agreement is effective from the Effective Date and shall remain in
                                                            force until terminated by one of the parties as provided herein.

 

		b)	Termination
                                                            for Convenience.
                                                            SSI may terminate this Agreement by giving the Supplier not less than
                                                            three months written notice prior to the effective date of such termination.

 

		c)	Termination
                                                                               for Cause.
                                                                               The term of this Agreement shall terminate:

 

    	Mfg Supply Agreement v6.0 [CLEAN]	CONFIDENTIAL	Page 12 of 25

    	 

    

 

		i)	automatically,
                                                            if one of the parties fails to perform any material obligations hereunder,
                                                            and such material obligations remain uncured thirty (30) days following
                                                            the date that the other party delivers to the defaulting party written
                                                            notice describing such performance failures; or

 

		ii)	immediately
                                                             upon notice by either party if the other party shall file for liquidation,
                                                             bankruptcy, reorganization, compulsory composition, dissolution,
                                                             or if the other party has entered into liquidation, bankruptcy, reorganization,
                                                             compulsory composition or dissolution (and such action has not been
                                                             dismissed or discharged within ninety (90) days), or if the other
                                                             party is generally not paying its debts as they become due (unless
                                                             such debts are the subject of a bona fide dispute).

 

		d)	Effect
                                                                               of Termination/Survival.
                                                                               Upon expiration or termination of this Agreement:

 

		i)	the
                                                            following provisions shall survive along with all definitions and
                                                            all other provisions that by their nature or terms should survive:
                                                            Sections 4(c), 4(d), 4(j), 6, 8, 9,
10, 11(d), 11(e), and 13 through 25.

 

		ii)	SSI
                                                             shall immediately pay all unpaid amounts due to the Supplier, other
                                                             than any amounts that are the subject of a good faith dispute between
                                                             the parties; and

 

		iii)	the
                                                              Supplier shall cease all Services and all manufacturing activities
                                                              except as necessary to complete any accepted Purchase Orders hereunder;
                                                              and

 

		iv)	the
                                                             Supplier shall remove and ship all Product, all associated quality
                                                             records, un-returnable inventory, SSI-owned tooling and fixtures
                                                             to SSI or its designee at SSI’s expense for the reasonable,
                                                             out-of-pocket direct costs incurred by the Supplier as a result thereof,
                                                             unless termination was caused by Supplier’s breach, in which
                                                             case the Supplier shall bear all such costs.

 

		e)	Transition.
                                                            Upon
                                                            termination of this Agreement, and for a period of ninety (90) days
                                                            thereafter, the Supplier shall use its commercially reasonable efforts
                                                            to provide reasonable cooperation and assistance (including without
                                                            limitation knowledge, materials sourcing, and transfer of unused materials
                                                            and unfinished inventory) to transition production of the Products
                                                            and performance of any Services to a party designated by SSI. The
                                                            Supplier may invoice SSI for reasonable, out-of-pocket direct costs
                                                            incurred by the Supplier in rendering such transition services, unless
                                                            termination was caused by the Supplier’s breach, in which case
                                                            the Supplier shall bear all such costs.

 

		12)	Required
Approvals. Each party shall obtain all domestic
and foreign governmental licenses, permits and approvals required for such party's performance in fulfilling this Agreement. Without
limiting the generality of the foregoing:

 

		a)	SSI
                                                            shall be responsible for complying with all applicable foreign and
                                                            U.S. federal, state and local laws, rules, regulations and orders
                                                            and for obtaining all applicable U.S. FDA, international ISO/CE and
                                                            other governmental agency product and design approvals and applicable
                                                            foreign agency approval for sale of the Products;

 

    	Mfg Supply Agreement v6.0 [CLEAN]	CONFIDENTIAL	Page 13 of 25

    	 

    

  

		b)	The
                                                            Supplier shall be responsible for complying with all applicable foreign
                                                            and U.S. federal, state and local laws, rules, regulations and orders
                                                            applicable to the performance of any Services or the design, development,
                                                            manufacture, packaging, labeling, storage, and shipping of the Product;
                                                            and

 

		c)	Supplier
                                                                               shall obtain and maintain an ISO 13485 certification
                                                                               by a notified body.

 

		13)	Insurance. The Supplier shall maintain during the term
of this Agreement and for five (5) years thereafter, at its expense: (a) not less than two million dollars ($2,000,000) of property
insurance covering all raw materials and work in progress inventory, all finished units of Products, and all tooling and equipment
owned by SSI hereunder while on the Supplier’s premises or under the Supplier’s control; and (b) not less than two
million dollars ($2,000,000) of products liability insurance, on an aggregate and per incident basis. The Supplier will provide
to SSI certificates of such insurance within five (5) days of any request by SSI. The Supplier will notify SSI promptly of any
cancellation of or change in such insurance.

 

		14)	Relationship
                                                                   of Parties.
                                                                   The relationship of SSI and the Supplier is that of buyer and
                                                                   seller/manufacturer, respectively, of goods. Nothing in this
                                                                   Agreement is intended to, or shall be deemed to, constitute
                                                                   a partnership, joint venture, agency, fiduciary, employment,
                                                                   or third-party beneficiary relationship or a transfer of any
                                                                   Intellectual Property of SSI to Supplier, and neither party
                                                                   hereto shall be authorized to act in the name of the other
                                                                   or enter into any contract or other agreement, which binds
                                                                   or creates a liability or obligation on the other, or hold
                                                                   itself out as having the authority to do any of the same. The
                                                                   Supplier’s employees will not be eligible for any employee
                                                                   benefits from SSI, and SSI will not make any deductions from
                                                                   the Supplier’s fees for taxes (except as otherwise required
                                                                   by applicable statute, regulation, order, or other law). Any
                                                                   taxes imposed on the Supplier due to activities performed hereunder
                                                                   will be the sole responsibility of the Supplier.

 

		15)	Enforceability. If any of the provisions of this Agreement,
or portions thereof, are found to be invalid or unenforceable by any court of competent jurisdiction the remainder of this Agreement
shall nevertheless remain in full force and effect and the parties will negotiate to replace such provision with a new valid,
enforceable provision that most closely approximates the economic effect of the provision found invalid or unenforceable.

 

		16)	Force
                                                                   Maieure.
                                                                   Neither SSI nor the Supplier shall be liable for any failure
                                                                   to perform obligations under this Agreement if prevented so
                                                                   by acts of God, fires, floods, storms, epidemics, earthquakes,
                                                                   riots, civil disobedience, wars or war operations, or restraint
                                                                   of government, provided that the affected party promptly notifies
                                                                   the other party of the cause of the failure and uses and continues
                                                                   to use best efforts to overcome such cause. If such cause continues
                                                                   for a period of one month and is not overcome by the affected
                                                                   party, the other party may cancel this Agreement without liability
                                                                   for such cancellation.

 

		17)	Waiver. No breach of any provision of this Agreement
may be waived except by a writing signed by an authorized representative of the waiving party. The waiver of any breach of any
provision of this Agreement shall not operate or be construed as a waiver of any other provision or of any subsequent breach of
the same provision.

 

    	Mfg Supply Agreement v6.0 [CLEAN]	CONFIDENTIAL	Page 14 of 25

    	 

    

  

		18)	Assignment. The rights and liabilities of the parties hereto
shall bind and inure to the benefit of their respective successors, heirs, executors, administrators and assigns; provided however
that as SSI has specifically contracted for the services to be provided by the Supplier hereunder, the Supplier may not assign,
delegate, or otherwise transfer the Supplier’s obligations under this Agreement or assign, pledge, hypothecate, mortgage,
encumber, or otherwise transfer any finished units of Products, any work in progress inventory, or any equipment or tooling owned
by SSI hereunder either in whole or in part without the prior written consent of SSI, which may be withheld in SSI’s sole
and absolute discretion. Any attempt to do any of the foregoing in violation of this Section shall be null and void.

 

		19)	Governing
                                                                   Law. This
                                                                   Agreement shall be governed by and construed in accordance
                                                                   with the laws of the State of California without regard to
                                                                   any conflicts of laws principles.

 

		20)	Dispute
                                                                   Resolution, Consent to Arbitration and Venue. The
                                                                   parties agree that upon the written demand of either party,
                                                                   whether made before or after the institution of any legal proceedings,
                                                                   but prior to the rendering of any judgment in that proceeding,
                                                                   all disputes, claims, and controversies between them (but excluding
                                                                   disputes, claims and controversies in which a third party is
                                                                   a necessary party), arising from this Agreement, including
                                                                   without limitation contract disputes and tort claims, shall
                                                                   be arbitrated in either San Francisco County, San Mateo County,
                                                                   or Santa Clara County, California, at the election of the party
                                                                   seeking arbitration, pursuant to the Commercial Rules of the
                                                                   American Arbitration Association by a panel of three arbitrators.
                                                                   The provisions of California Code of Civil Procedure Section
                                                                   1283.05 shall apply to any such arbitration. All expenses of
                                                                   such arbitration shall be borne equally by the parties, except
                                                                   as otherwise provided below. Any arbitration decision shall
                                                                   be final and non-appealable unless the parties mutually agree
                                                                   otherwise in writing before a final decision by the panel of
                                                                   arbitrators. Any arbitration order or award may be enforceable
                                                                   in an appropriate court as provided herein. Each party shall
                                                                   select one arbitrator and those two arbitrators shall select
                                                                   the third arbitrator to form the panel. Each party reserves
                                                                   the right, notwithstanding the foregoing, to seek equitable
                                                                   relief in a court of competent jurisdiction in any appropriate
                                                                   state or federal court. The prevailing party in any arbitration
                                                                   or court proceeding is entitled to be reimbursed for any and
                                                                   all reasonable attorney’s fees, expert fees, and costs of suit
                                                                   from the losing party. The Supplier acknowledges and agrees
                                                                   that damages will not be an adequate remedy in the event of
                                                                   any breach of any of the Supplier’s confidentiality or
                                                                   Intellectual Property related obligations under this Agreement.
                                                                   Accordingly, the Supplier agrees that SSI shall be entitled
                                                                   (without limitation of any other rights or remedies otherwise
                                                                   available to SSI and without the necessity of posting a bond)
                                                                   to obtain an injunction from any court of competent jurisdiction
                                                                   prohibiting the occurrence, continuance, or recurrence of any
                                                                   breach of this Agreement.

 

		21)	Retained
                                                                   Rights. Nothing
                                                                   in this Agreement is intended to limit the ability of either
                                                                   party to engage in any business or activity with any other
                                                                   person or entity, subject to performing its obligations hereunder.
                                                                   Notwithstanding the foregoing, during the term of this Agreement
                                                                   and for three (3) years after its termination, the Supplier
                                                                   will not, directly or indirectly, recruit, solicit, or induce
                                                                   any employee or contractor of SSI to terminate his or her relationship
                                                                   with SSI.

 

    	Mfg Supply Agreement v6.0 [CLEAN]	CONFIDENTIAL	Page 15 of 25

    	 

    

  

		22)	Notices. Any notice, report, approval, consent or other
correspondence required or permitted to be given hereunder will be in writing and shall be deemed received when delivered personally
or on the first business day on or after being sent by facsimile, or on the first business day that is at least 72 hours after
being deposited in the U.S. mail or courier service postage prepaid. The parties agree that all such notices will be sent to the
address or facsimile number of the party set forth on the signature page hereto or to such other address or number as such party
may provide to the other by written notice.

 

		23)	Entire
                                                                   Agreement; Modifications.
                                                                   Except as expressly provided herein with respect to the Consulting
                                                                   Agreement, this Agreement represents the entire understanding
                                                                   between the parties with respect to the subject matter of this
                                                                   Agreement, and this Agreement supersedes any and all prior
                                                                   and contemporaneous understandings, agreements, plans, and
                                                                   negotiations, whether in written, oral, electronic, or other
                                                                   form, with respect to the subject matter hereof. This Agreement
                                                                   may be amended only by a writing signed by authorized representatives
                                                                   of each of the parties hereto.

 

	24)		Definitions.

 

		a)	“Improvements”
                                                                shall
                                                                mean all improvements to inventions disclosed or claimed in SSI
                                                                Patents and all Know-How hereafter created or acquired during
                                                                the fulfillment of this Agreement by the Supplier or jointly by
                                                                one or more employees of SSI and the Supplier, including without
                                                                limitation advances, developments, modifications, enhancements,
                                                                variations, revisions, adaptations, extensions or any element
                                                                thereof, utilizing or incorporating, or based on, any existing
                                                                Know-How or any inventions disclosed or claimed in any Patents,
                                                                whether such improvements are patentable or not.

 

		b)	“Intellectual
                                                                Property” shall
                                                                mean trade secrets, ideas, inventions, designs, developments,
                                                                devices, methods or processes (whether or not patented or patentable
                                                                and whether or not reduced to practice) and all patents and patent
                                                                applications related thereto; copyrights; copyrightable works
                                                                and mask works (whether or not registered); trademarks, service
                                                                marks and trade dress; and all registrations and applications
                                                                for registration related thereto; and all other intellectual or
                                                                industrial property rights.

 

		c)	“Know-How”
                                                                shall
                                                                mean the know-how, technical information and confidential technical
                                                                data, together with all trade secrets, unpatented technical knowledge
                                                                and inventions, confidential manufacturing procedures and methods
                                                                that are related to the Products.

 

		d)	“Losses”
                                                                shall
                                                                mean any and all damages, liabilities, judgments, costs, and expenses
                                                                (including reasonable attorneys' fees and expenses), and amounts
                                                                paid in settlement.

 

		e)	“Patents”
                                                                shall
                                                                mean those patents and patent applications that are now or hereafter
                                                                owned or acquired by SSI that are infringed by the Products.

 

		f)	“Quality
                                                                System” shall
                                                                include the following processes and procedures and quality requirements:

 

		i)	Design
                                                               Controls: The U.S. FDA-QSR and all other applicable rules and regulations
                                                               of governmental or regulatory agencies in those jurisdictions throughout
                                                               the world in which SSI informs the Supplier any Products are intended
                                                               for distribution;

 

    	Mfg Supply Agreement v6.0 [CLEAN]	CONFIDENTIAL	Page 16 of 25

    	 

    

  

		ii)	Procedures:
                                                             Mutually agreed upon document with procedures for manufacturing,
                                                             testing, packaging, labeling, storing, and shipping Products;

 

		iii)	Quality
                                                              Plans: Mutually agreed upon document outlining component quality
                                                              plans and assembly quality plans for Product; and

 

		iv)	Specification
                                                             Change: Document approved by the Supplier and SSI for changes in
                                                             Specifications.

 

		25)	Counterparts. This Agreement may be executed in one or more
original or facsimile counterparts, each of which shall be deemed an original and all of which, taken together, shall constitute
one and the same instrument.

 

    	Mfg Supply Agreement v6.0 [CLEAN]	CONFIDENTIAL	Page 17 of 25

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by duly authorized persons as of the Effective Date
indicated above.

 

	SUPPLIER:
    Phoenix DeVentures, Inc.	Supplier
    Contact Information for Notices:

 

	By: 	/s/ Jeff
Christian	 	Address:
    	18655
    Madrone Pkwy

 

	Name: 	Jeff
    Christian	 	 	Suite
    180
	 	 	 	 	 
	Title: 	President	 	 	Morgan
    Hill, Ca 95037

 

	 	Facsimile:
    	408-779-2385
	 	 	 
	 	Telephone:
    	408-786-5094

 

	SSI,
    Inc.	SSI
    Contact Information for Notices:

 

	By:
    	/s/
Bob McRae	 	Address:
    	2330
    NW Everett St

 

	Name:
    	Bob
    McRae	 	 	Portland,
    OR 97210
	 	 	 	 	 
	Title:
    	Chief
    Operating Officer	 	 	 

 

	 	Facsimile:
    	800-303-7259
	 	 	 
	 	Telephone:
    	877-774-4211

 

    	Mfg Supply Agreement v6.0 [CLEAN]	CONFIDENTIAL	Page 18 of 25

    	 

    

 

Schedule
1

 

Products
& Shipping

 

	Part

        Number
	Product	Unit Transfer

        Cost
	Inventory
                                                                                                       Target

        Range
        [weeks of

        Forecasted
        Demand]

	44-0003	FloChec Printer	Cost*
    +     $3.50	3
    –     6
	44-0001	FloChec     Configured Laptop	Cost*
    +     $30.25	2
    –     4
	42-0001	FloChec
    Reusable Sensor	$108.52/each	3
    – 6
	43-0001	FloChec
    USB Interface	$165.64/each	3
    –     6
	91-0002	USB
    Cable + FloChec Box	$6.77/each	n/a
	 	Each
                                                           Product above may also

        have
        a corresponding

        refurbished part number
	n/a
                                                                           (time
                                                                           &

        materials)
	n/a
	*Cost
is the Supplier’s average cost during the calendar quarter

 

Shipping
Service Charges

 

Shipping
Services shall be charged per the schedule below. A shipment is defined by a single destination.

 

	Description	Fee
	Planned
    Shipment Services	 	time
    basis per schedule 3
	Per
    Un-planned* Shipment Fee	$	30/shipment
	*Unplanned
is a shipment that is requested with less than 48-hrs notice.

 

	SUPPLIER:
    Phoenix DeVentures, Inc.	 	SSI,
    Inc.

 

	By:	/s/
Jeff Christian	 	By:	/s/
Bob McRae

 

	Name:
    	Jeff
    Christian	 	Name:	Bob
    McRae
	 	 	 	 	 
	Title:
    	President	 	Title:	Chief
    Operating Officer
	 	 	 	 	 
	Date:	9/12/2011	 	Date:	9/4/11

 

    	Mfg Supply Agreement v6.0 [CLEAN]	CONFIDENTIAL	Page 19 of 25

    	 

    

 

Schedule
2

 

Quality
Responsibility Matrix

 

	DUTIES	SSI	Supplier	N/A	COMMENTS
	1.
    RAW MATERIAL AND COMPONENTS	 	 	 	 
	-Specifications
    Development	X	 	 	 
	&
    Maintenance	 	X	 	 
	-Specifications
    Control in Plant/SOPs	 	X	 	 
	-Ordered
    from Approved Suppliers	 	X	 	 
	-Receipt/Warehousing/Segregation
    of Materials	 	X	 	 
	-Incoming
    inspection, sampling & testing	 	X	 	 
	-Retest
    as necessary for release	 	X	 	 
	-Retest
    for expiration	 	 	X	No
    expiration date on product
	-Inventory
    Management & Accountability	 	X	 	 
	-Destruction
    of Waste Materials	 	X	 	 
	-Retain
    Samples (Active RM)	 	 	X	 
	-Labeling
    Control & Accountability	 	X	 	 
	-Disposition
    of Materials (Release/Reject)	 	X	 	 
	-Use
    of Materials out of Specifications – Deviations	 	X	 	With
    approval from SSI
	-Suppliers
    Audits	 	X	 	 
	-Approved
    Supplier List	 	X	 	 
	2.
    WORK-IN-PROGRESS	 	 	 	 
	-Specifications
    Development	X	 	 	 
	&
    Maintenance	 	X	 	 
	-Manufacturing
    Directions Development	 	X	 	 
	&
    Maintenance	 	X	 	 
	-Specifications
    Control in Plant	 	X	 	 
	-Area/Equipment
    Set Up & inspection	 	X	 	 

  

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	DUTIES	SSI	Supplier	N/A	COMMENTS
	-Sanitization
    - Manufacturing Areas	 	 	X	Product
    non-sterile
	-Filling
    Machinery & Equipment Sanitization	 	 	X	Product
    non-sterile
	-Line
    Clearance Procedure	 	X	 	 
	-Lot
    records/DHR issuance & maintenance	 	X	 	 
	-Equipment
    -maintenance, integrity & calibration	 	X	 	 
	-Environmental
    & Personnel monitoring	 	 	X	Not
    assembled in a CER
	-Lot
    record/DHR review	 	X	 	 
	-Cleaning
    records & Logs	 	 	X	Not
    assembled in a CER
	-Dispensing
    records & Logs	 	X	 	 
	-in-Process
    sampling analysis & testing	 	X	 	 
	-Deviations
    from Bulk Parameters Specifications	 	 	X	No
    bulk materials in Product
	-Development
    of Bulk and WIP Parameters/Annual Rev.	 	 	X	No
    bulk materials in Product
	-Documentation
    System and SOPs	 	X	 	 
	-Changes
    to Process Parameters	 	X	 	With
    approval from SSI
	-Final
    Product sampling and testing	 	X	 	 
	-Disposition
    of Product (release/reject)	 	X	 	 
	-Destruction
    of Waste Materials	 	X	 	 
	3.
    PACKAGING	 	 	 	 
	-Specifications
    Development	X	 	 	 
	&
    Maintenance	 	X	 	 
	-Specifications
    Control in Plant	 	X	 	 
	-Line
    Clearance Procedure	 	X	 	 
	-Environmental
    & Personnel monitoring	 	 	X	Not
    assembled in a CER
	-Labeling
    controls & reconciliation	 	X	 	 
	-Lot
    number, Control	 	X	 	 
	-Expiration
    Date Control	 	 	X	No
    expiration date on product

 

    	Mfg Supply Agreement v6.0 [CLEAN]	CONFIDENTIAL	Page 21 of 25

    	 

    

 

	DUTIES	SSI	Supplier	N/A	COMMENTS
	-Expiration
    Dating Development	 	 	X	No
    expiration date on product
	-Cartoning
    & Bundling	 	X	 	 
	-Palletizing
    and Storage	 	X	 	 
	-Quarantine
    and Storage SOPs	 	X	 	 
	-Deviations
    from Packaging Specifications	 	X	 	With
    approval from SSI
	-Product
    sampling, inspection and testing	 	 	X	No
    sterile barrier
	4.
    PRODUCT RELEASE	 	 	 	 
	-Specifications
    Development and	X	 	 	 
	&
    Maintenance	 	X	 	 
	-Quarantine
    release SOPs	 	X	 	 
	-Product
    release SOPs	 	X	 	 
	-Standard
    Analytical & Microbiological Tests	 	 	X	Product
    non-sterile
	-Lot
    record/DHR review	 	X	 	 
	-Environmental
    monitoring review (air, water, steam, pressure)	 	 	X	Not
    required for product manufacturing
	-Tests
    Problem Resolution procedures	 	X	 	 
	-Deviation(s)
    reporting, investigations & Documentation	 	X	 	With
    approval from SSI
	-Finished
    Goods Retesting	 	X	 	With
    notification to SSI
	-Disposition
    of Product (release/rejection)	 	X	 	 
	-Evaluation
    of Finished Product with Deviations from specs	 	X	 	With
    approval from SSI
	-Destruction
    of Waste Materials	 	X	 	 
	-Quarantine
    & Quarantine release procedures	 	X	 	 
	-Certificates
    of Compliance	 	 	X	 
	5.
    STABILITY PROGRAM	 	 	X	No
    expiration date on product
	6.
    CUSTOMER COMPLAINTS	 	 	 	 
	-Standard
    Operating Procedure-in Plant	X	X	 	 
	-Logging/Receipt	X	 	 	 

  

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	DUTIES	SSI	Supplier	N/A	COMMENTS
	-Retain
    sampling/returned Product, handling & testing	 	X	 	 
	-analysis	 	X	 	 
	-in
    Plant laboratory	 	X	 	 
	-outside
    laboratory	 	X	 	 
	-Synchrony
    on records with Company	X	X	 	 
	-Reporting
    (Internal & External)	X	X	 	SSI
    External; Supplier Internal
	7.
    GENERAL & FACILITY	 	 	 	 
	-SOPs,
    Guidelines, Practices and Policies	 	X	 	 
	-monitoring,
    maintenance, calibration of	 	 	 	 
	-ESD	 	X	 	 
	-water
    Systems (Dl, WFI)	 	 	X	Product
    not sensitive to these systems
	-Clean
    air System	 	 	X	Product
    not sensitive to these systems
	-HVAC
    System	 	 	X	Product
    not sensitive to these systems
	-steam
    System	 	 	X	Product
    not sensitive to these systems
	-pressure
    System	 	 	X	Product
    not sensitive to these systems
	-Periodic
    Product review	 	 	 	 
	-Data
    Collection	 	X	 	 
	-Written
    Report (Process, Analytical & Complaint Data)	 	X	 	 
	-General
    records Systems	X	X	 	 
	-Documentation
    System in Plant	 	 	 	 
	-Records
    Retention (Lot records/DHRs)	 	X	 	 
	-Change
    Control in Plant	 	X	 	 
	-Retain
    Samples Management	 	 	X	Retained
    samples not necessary
	-Training
    and Education	 	X	 	 
	-Process
    and Product Validation	 	 	 	 
	-Facility
    and Systems	 	X	 	 

  

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	DUTIES	SSI	Supplier	N/A	COMMENTS
	-Equipment	 	X	 	 
	-Product	X	 	 	SSI:
    Product Validation; Supplier: Process Validation
	-Revalidation	X	X	 	SSI:
    Product Validation; Supplier: Process Validation
	-New
    Products	X	 	 	 
	-Quality
    Alert System	X	X	 	 

  

    	Mfg Supply Agreement v6.0 [CLEAN]	CONFIDENTIAL	Page 24 of 25

    	 

    

 

Schedule
3

 

Engineering Services
Fee Schedule

  

	Role	Rate
	Management	$175/hr
	Engineering	$135/hr
	Assembly	$65/hr
	Document
    Control	$95/hr
	Shipping	$95/hr
	 	 

 

Schedule
4

 

Initial
[draft] Forecast

  

	Month	Units
	June-2011	25
	July-2011	25
	August-2011	25
	September-2011	25
	October-2011	25
	November-2011	25
	December-2011	25
	 	 

  

    	Mfg Supply Agreement v6.0 [CLEAN]	CONFIDENTIAL	Page 25 of 25

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