Document:

Development Agreement, dated 06/01/2005

 Exhibit 10.3 
  
 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  
 ATRICURE-STELLARTECH DEVELOPMENT AGREEMENT 
  
 This Development Agreement (the “Agreement”) is made and entered
into as of June 1, 2005 (the “Effective Date”) by and between Stellartech Research Corporation (“Stellartech”), a California corporation, whose business address is 1346 Bordeaux Drive, Sunnyvale, California 94089, USA, and
AtriCure, Inc, (“AtriCure”) a Delaware corporation whose business address is 6033 Schumacher Park Drive, West Chester, Ohio, USA. 
  
 WITNESSETH: 
  
 WHEREAS, AtriCure is in the business of developing and manufacturing RF atrial ablation devices; and 
  
 WHEREAS, Stellartech is in the business of providing development,
engineering, and manufacturing of RF generators for medical and other applications; and 
  
 WHEREAS, AtriCure requires the development and enhancement of an RF generator to work with its handpieces and desires Stellartech to develop and enhance this RF generator; and 
  
 WHEREAS, AtriCure desires to acquire the rights to the processes and
technology required to manufacture and commercialize products that incorporate such RF generators; 
  
 NOW, THEREFORE, the parties agree as follows: 
  

	1.	DEFINITIONS 

  
 For the purposes of this Agreement, the terms defined in this Article 1 shall have the respective meanings set forth below: 
  
 (a) “Stellartech Technology” shall mean the Stellartech
intellectual property rights to certain intellectual properties, design, know-how, trade secrets, patents and or inventions that it may utilize in the provision of the Services (as hereinafter defined). 
  
 (b) “AtriCure Technology” shall mean the AtriCure intellectual
property, rights to certain intellectual properties, design, know-how, trade secrets, patents and or inventions. 
  
 (c) “Cardiac Arrhythmia Treatment” shall mean the therapeutic treatment of cardiac arrhythmias. 
  
 (d) “Confidential information” shall mean collectively, any
technological, business, product or marketing-related information of the Disclosing Party and any documentation, information and intellectual property rights related thereto, or any part or component thereof, as well as all specifications,
processes, drawings, memoranda, data, technical or business information or trade secrets, confidential knowledge, data or other proprietary information relating to products, processes, inventions, developments, improvements, know-how, designs,
formulas, developmental or experimental work, computer programs, data bases, other original works or authorship, customer lists, business plans, financial information or other subject matter pertaining to or of possible use in any present or
prospective business of either party or any of either party’s other clients, Stellartech’s, or licensees, provided that: (a) disclosures in written or other tangible form are expressly marked with a confidential or proprietary legend; and
(b) oral disclosures and tangible embodiments in a form other than written are identified as confidential or proprietary at the time of disclosure and are thereafter reduced to writing and provided to the Receiving Party within 30 days after the
oral disclosure. This Section shall not apply to 
  
  

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information received from the Disclosing Party which (i) is or becomes publicly available (ii) is declared not confidential by the Disclosing Party in
writing (iii) is lawfully obtained without violation of any confidentiality obligations from third parties or (iv) is required by law to be disclosed by Receiving Party. 
  

	2.	DEVELOPMENT 

  
 Stellartech agrees to provide the “Development Services” to AtriCure as set forth in Exhibit A. 
  

	3.	TERM 

  
 3.1 Completion of Services. This Agreement will become effective on the Effective Date and shall continue in effect until December 31, 2006, unless terminated earlier as set forth in Section 3.2. This Agreement can be
renewed for additional periods upon written agreement by AtriCure and Stellartech. 
  
 3.2 Termination. This Agreement may be terminated as follows: 
  
 (a) by either party by giving the other party written notice of termination if any of the following events should occur: (i) if the other party becomes insolvent or admits in writing its inability to pay its debts as
they mature or makes an assignment for the benefit of creditors; (ii) if a petition under the United States Bankruptcy Act, as it now exists or as it may be amended, or any similar law of any other jurisdiction, is filed concerning the other party;
or (iii) if a petition is filed by any third party, or an application for a receiver of the other party, is made by anyone and such petition or application is not resolved favorably to that party within sixty (60) days. 
  
 (b) if either party defaults in the performance of any obligation or
provision of this Agreement and, assuming such default is capable of cure, fails to cure such default within thirty (30) days after written notice specifying the default, the non-defaulting party giving notice may, at its option, terminate this
Agreement immediately upon written notice to the defaulting party. 
  
 (c) by AtriCure, at any time by providing written notice to Stellartech at least 30 days prior to such termination. 
  
 (d) at any time, upon the mutual written consent of the parties. 
  

(e) Termination by AtriCure. In the event of termination by AtriCure other than for Stellartech’s material breach or bankruptcy, AtriCure will pay
Stellartech for any Services rendered up to the date of termination in accordance with Exhibit B, and all licenses granted hereunder, with the exception of such licenses granted under Section 6.3, shall terminate, except as expressly set forth in
Exhibit A hereto. In the event of termination for cause upon material breach by Stellartech that is not cured according to (b) above, or termination under the bankruptcy provisions of section (a) above, AtriCure will retain all license rights
granted by this Agreement and all licenses will become fully paid up licenses. For purposes of this Agreement, termination for cause upon a material breach includes (i) termination under the provisions of section 3.2 (a) above and (ii) termination
if RF generators manufactured for AtriCure continue to exhibit defects causing serious disruption of supply, notwithstanding Stellartech’s remedial efforts, over a continuous period of three (3) months or more. 
  
 (f) Termination by Stellartech. In. the event of termination by Stellartech
for other than for AtriCure’s material breach or bankruptcy, AtriCure will retain all license rights granted by this Agreement upon payment for the amount of work performed by Stellartech. In the event of termination for cause upon material
breach by AtriCure that is not cured according to (b) above, or termination under the bankruptcy provisions of section (a) above, AtriCure will have no further right to use, manufacture or sell any device which includes the Stellartech Technology.

  

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	4.	COMPENSATION 

  
 Stellartech shall be paid compensation in the amount and at the times set forth in Exhibit B. 
  

	5.	RESPONSIBILITIES 

  
 5.1 Stellartech shall use commercially reasonable best efforts to perform and promptly complete the Services set forth in Exhibit A. 
  
 5.2 Stellartech, in conjunction with AtriCure, will determine the method,
details and means of performing the Services described above. 
  
 5.3 Stellartech agrees to accept exclusive liability for the payment of payroll taxes, self-employment taxes, and social security and other contributions that are based on the compensation to be paid to Stellartech under this Agreement and
on the wages or other compensation paid to any agents or employees of Stellartech which AtriCure has authorized Stellartech to engage. Stellartech agrees to indemnify and defend AtriCure against all such taxes or contributions. 
  
 5.4 Stellartech shall comply with Design Control requirements as required in
the US FDA QSR, ISO 13485 and the Medical Device Directive (MDD). 
  

	6.	OWNERSHIP OF INVENTIONS: GRANT OF LICENSE 

  
 6.1 Invention and Original Works Assigned to AtriCure. Stellartech will promptly make full disclosure to AtriCure, will hold in trust for the sole right
and benefit of AtriCure, and will assign, and does hereby assign, to AtriCure all Stellartech’s right, title, and interest in and to any and all inventions, original works of authorship, developments, designs, improvements, or trade secrets
developed in the course of Stellartech’s performance of the Services hereunder (collectively “Inventions”), together with all patent and other rights therein Stellartech has or may acquire in all countries. 
  
 6.2 Obtaining Letters of Patent and Copyright Registration. Stellartech
agrees to assist AtriCure in every lawful way to obtain, prepare and prosecute applications for, to perfect AtriCure’s title to, and to protect and enforce AtriCure’s rights in the United States or foreign countries, letters patent, and
copyright registrations covering Inventions, assigned hereunder to AtriCure. Such obligations shall continue beyond the termination of Stellartech’s engagement, but AtriCure shall compensate Stellartech at a reasonable rate for time actually
spent by Stellartech at AtriCure’s request on such assistance. 
  
 6.3 Grant of Licenses. Stellartech grants to AtriCure a license to use its technology exclusively for the use in the AtriCure, Inc. ASU product – either made by Atricure as provided for in Exhibit A, or made by Stellartech for
AtriCure, Inc. It is usable by AtriCure, Inc. only in the field of Cardiac Arrhythmia Treatment. AtriCure hereby grants to Stellartech an unlimited, nonexclusive, irrevocable, worldwide, royalty-free license to us, license, sublicense, incorporate
into products, manufacture or otherwise commercially exploit any Inventions for use in applications outside of the field of Cardiac Arrhythmia Treatment. It is understood by and between the parties that Stellartech owns and may in the future own
certain intellectual property rights to certain intellectual properties, design, know-how, trade secrets, patents and/or inventions that it may utilize in the provision of the Services (collectively, the “Stellartech Technology”).
Stellartech is free to continue to use it’s technology to develop products for customers in any field. AtriCure shall not otherwise be entitled to use, license or commercially exploit the Stellartech Technology without Stellartech’s prior
written consent, which may be withheld at Stellartech’s sole discretion. Nothing in this paragraph shall prohibit AtriCure from exercising any make or have-made rights arising from AtriCure’s manufacturing permitted under the provisions of
the Manufacturing Services section of Exhibit A. 
  

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	7.	WARRANTIES, LIMITATIONS OF LIABILITY, INDEMNIFICATION 

  
 EXCEPT AS EXPRESSLY SET FORTH HEREIN, STELLARTECH MAKES NO WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPLIED, WITH RESPECT TO THIS AGREEMENT,
STELLARTECH’S TECHNOLOGY, OR ANY SERVICES, GOODS OR DEVELOPMENTS TO BE PROVIDED IN CONNECTION WITH THIS AGREEMENT, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS OR DESCRIPTION. 
  
 IN NO EVENT SHALL STELLARTECH BE LIABLE FOR ANY SPECIAL, INDIRECT,
INCIDENTAL, CONSEQUENTIAL OR EXEMPLARY DAMAGES ARISING OUT OF, PURSUANT TO OR IN CONNECTION WITH THIS AGREEMENT, INCLUDING, BUT NOT LIMITED TO, LOSS OF PROFIT OR OTHER MONETARY LOSS, EVEN IF ATRICURE IS ADVISED IN WRITING IN ADVANCE OF THE
POSSIBILITY OF SUCH DAMAGES. STELLARTECH’S LIABILITY FOR DAMAGES TO ATRICURE FOR ANY CAUSE WHATSOEVER, AND REGARDLESS OF FORM, WHETHER IN CONTRACT OR IN TORT, INCLUDING NEGLIGENCE, SHALL IN NO EVENT EXCEED THE LESSER OF THE TOTAL AMOUNT OF
MONIES PAID BY ATRICURE TO STELLARTECH PURSUANT TO THIS AGREEMENT OR $50,000 FOR DEVELOPMENT WORK UP TO DECEMBER 1, 2003, AND FOR DEVELOPMENT WORK AFTER DECEMBER 1,2003, NO MORE THAN 50% OF THE AMOUNT OF AN GIVEN PROJECT. 
  
 Stellartech warrants that it is not aware that the Stellartech Technology was
created in violation of the protected trade secrets of any third party, and further represents and warrants that it is not aware that the Stellartech Technology infringes or misappropriates any patent, copyright or trade secret, or of any claim
asserting the same. 
  
 Stellartech warrants that the Stellartech
Quality System meets U.S. Food and Drug Administration Quality System Regulations, ISO 9000/13485 requirements and standards, and CE marking requirements governing the manufacture of devices for human medical uses. Stellartech farther agrees that it
will assist AtriCure, at AtriCure’s expense, in obtaining CE marking approval for any products developed during the term of this Agreement. 
  
 AtriCure will indemnify Stellartech and hold it harmless from and against all claims, damages, losses and expenses (including reasonable attorneys’
fees) arising out of or resulting from or otherwise related to the performance of the Services to be provided by Stellartech pursuant to this Agreement (including, without limitation, claims related to product liability or breach of warranty),
except to the extent any such claims, damages, losses and expenses are attributable to (i) a breach by Stellartech of any of its express obligations or warranties pursuant to this Agreement, (ii) Stellartech’s negligence or willful misconduct,
(iii) infringement claims relating to any Stellartech intellectual property rights (including the Stellartech Technology) (a) in existence prior to the date hereof or (b) not incorporated into the Inventions, or (iv) Stellartech’s fraud.

  
 Stellartech will indemnify AtriCure and hold it harmless from
and against all claims, damages, losses and expenses (including reasonable attorneys’ fees) arising out of or resulting from or otherwise related to the items addressed in clauses (i) through (iv) of the previous paragraph. 
  

	8.	VENDOR STATUS 

  
 The parties agree that the relationship between Stellartech and AtriCure is that of vendor and purchaser, respectively, and that included in the work to
be done under this Agreement is defining the custom requirements for products to be sold by Stellartech to AtriCure. No joint venture, partnership or similar relationship is formed by this Agreement, and neither party shall have any authority to
bind the other. 
  

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	9.	COOPERATION AFTER TERMINATION 

  
 Following (i) any notice of termination of this Agreement given pursuant to Paragraph 3.2 above, or (ii) upon expiration of the term of this Agreement, or
(iii) upon election of AtriCure to manufacture during the Stellartech 50% Period as defined in Exhibit A, “Manufacturing Services”, Stellartech shall fully cooperate with AtriCure in all matters relating to the winding up of
Stellartech’s pending work on behalf of AtriCure and AtriCure’s efforts, if any, to manufacture the Products, and will be compensated at the rates set forth in Exhibit B; provided that such obligations shall be contingent upon AtriCure
having paid to Stellartech all amounts owing to Stellartech hereunder. Without the prior written consent of AtriCure, Stellartech shall not be entitled to retain and shall not retain copies of any information owned by AtriCure at any time designated
by AtriCure as confidential or proprietary, except for one copy for archival purposes, or copies as may be required by law or regulation. 
  
 Stellartech agrees that, at the time of terminating Stellartech’s agreement with AtriCure and at any other time AtriCure requests, Stellartech will
deliver to AtriCure (and will not keep in Stellartech’s possession or deliver to anyone else) any and all devices, materials, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches,
equipment, other documents or property, or reproductions of any aforementioned items belonging to AtriCure, its successors, or assigns, except for one copy for archival purposes, or copies as may be required by law or regulation. Stellartech will
not, during or after Stellartech’s engagement with AtriCure, deliver or transfer to any person, or use, without authorization by AtriCure any property owned by AtriCure. 
  

	10.	ASSIGNMENT 

  
 The rights and obligations of the parties hereto are personal in nature and may not be assigned without the other party’s prior written consent,
except in connection with a sale or transfer of all or substantially all of the business or assets of the assigning party pertaining to the subject matter hereof, whether by merger, reorganization, acquisition or otherwise. 
  

	11.	CONFIDENTIAL INFORMATION 

  
 The parties hereby agree that: (a) any Confidential Information received by either party (the “Receiving Party”) from the other (the
“Disclosing Party”) under this Agreement, whether for the Receiving Party’s own internal use or otherwise, and whether provided orally, in writing or in any other medium, is and shall be treated as the confidential property of the
Disclosing Party; if the Confidential Information is disclosed orally or visually, it shall be identified as such at the time of disclosure; (b) the Receiving Party shall hold such Confidential Information in strictest confidence and shall exercise
at least the same degree of care to safeguard the confidentiality of the Confidential Information; and (c) except as provided in this Agreement, the Confidential Information shall not be duplicated or in any way disclosed to others in whole or in
part without the prior express written permission of Disclosing Party. 
  
 The prohibition on disclosure set forth above shall not apply to disclosures by the Receiving Party based on a need to know provided such disclosures are reasonably necessary to the Receiving Party’s performance hereunder or use of
products delivered hereunder in accordance with this Agreement, and provided further that the Receiving Party shall take all reasonable steps to insure that such persons or entities to whom disclosure is made shall have been advised of the
confidential nature thereof and shall be under an express written obligation to maintain such confidentiality and to be bound by the obligations of this Section. 
  
 Each Receiving Party agrees to indemnify and hold harmless the Disclosing Party from and against any expenses (including
court costs and reasonable fees of attorneys, accountants and expert witnesses), claim, costs, action, demand, proceeding, award, liability, loss and damages suffered by the Disclosing Party in connection with any failure by the Receiving Party to
(a) satisfy any of their obligations under this Section and (b) to undertake whatever action is necessary to remedy any such failure. 
  

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 This Section shall not apply to information received from the Disclosing Party which (a) is or becomes
publicly available (b) is declared not confidential by the Disclosing Party in writing (c) is lawfully obtained without violation of any confidentiality obligations from third parties or (d) is required by law to be disclosed by Receiving Party.

  

	12.	GOVERNING LAW: DISPUTE RESOLUTION 

  
 This Agreement shall be governed by and interpreted in accordance with the internal laws of the State of California. In the event of a dispute between the
parties to this Agreement, the parties agree to promptly meet and confer with the goal of settling such dispute. If the parties are unable to reach a prompt, amicable agreement concerning such dispute, the parties agree to submit the matter to
non-binding mediation. If the parties cannot agree on a mediator, the Judicial Arbitration and Mediation Service, Inc., San Francisco, California office (“J.A.M.S.”) will be requested to provide a mediator with expertise in technology
license and consulting agreements. The mediation fee, if any, shall be divided equally between the parties. Failing the resolution of their dispute by mediation, each party hereto hereby submits to the jurisdiction of any state or federal court
located in Santa Clara County, California. If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees, costs and necessary
disbursements in addition to any other relief to which such party may be entitled. 
  

	13.	ENTIRE AGREEMENT 

  
 This Agreement constitutes the entire agreement between the parties respecting the Services expected to be rendered by Stellartech to AtriCure, and there
are no representations, warranties, or commitments which may be relied upon by either party except as specifically set forth in this Agreement. This Agreement supersedes all prior or contemporaneous agreements, commitments, representations,
writings, and discussions between AtriCure and Stellartech, whether oral or written. This Agreement may be amended only by an instrument in writing executed by the parties hereto. Stellartech expressly acknowledges that Stellartech has read the
terms of this Agreement, has had the opportunity to discuss those terms with his own legal counsel, and understands that this is a legally binding contract. AtriCure expressly acknowledges that AtriCure has read the terms of this Agreement, has had
the opportunity to discuss those terms with his own legal counsel, and understands that this is a legally binding contract. 
  

	14.	NOTICES 

  
 Any notice, request, demand or other communication hereunder shall be in writing and shall be deemed to be duly given when delivered by registered or
certified mail, return actually delivered, personal delivery, nationally recognized overnight courier, or facsimile. If to AtriCure, at Attention: President, AtriCure, Inc., 6033 Schumacher Park Drive, West Chester, Ohio 45069, or if to Stellartech,
at Attention: President, Stellartech Research Corporation, 1346 Bordeaux Drive, Sunnyvale, California 94089, or to such other address as either party may specify by notice to the other as provided in the Paragraph. 
  

	15.	SAVINGS CLAUSE 

  
 Should any valid federal or state law or final determination of any administrative agency or court of competent jurisdiction invalidate or otherwise
affect any provision of this Agreement, the provision or provisions so affected shall be conformed automatically and to the extent possible to the law or determination in question, and in all events the remaining provisions of this Agreement shall
continue in full force and effect. 
  

	16.	COUNTERPARTS 

  
 This Agreement and the other agreements referred to above may be executed in counterparts, each of which shall be deemed to be an original. 
  

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	17.	NO WAIVER 

  
 The failure of either party at any time to require performance by the other party of any provision hereof shall not affect or limit the full rights to
require such performance at any time thereafter. The waiver by either party of a breach of any provision hereof shall not be taken, construed or held to be a waiver of the provision itself or a waiver of any breach thereafter or any other provision
hereof. 
  
 IN WITNESS WHEREOF, the parties hereto have caused
this Agreement to be duly executed as of the first date written above. 
  

									
	 AtriCure, Inc.
	 	 	 	 Stellartech Research Corporation

					
	By:	 	

	 	 	 	By:	 	

	 	 	David J. Drachman	 	 	 	 	 	Roger A. Stern, Ph.D.
	 	 	Chief Executive Officer	 	 	 	 	 	President
					
	Date:	 	 6/16/05
	 	 	 	Date:	 	 June 16, 2005

  

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 Exhibit A 
  

Development Services 
  

	 	1.	Support of ASU2/3 product manufacturing 

  

	 	a.	Cost reductions 

  

	 	i.	Cost reduction efforts may be initiated by AtriCure or by Stellartech. Stellartech initiated cost reduction compensation must be have prior approval by AtriCure.

  

	 	ii.	Stellartech will be compensated for design and development efforts intended to reduce the manufacturing cost of the product as set forth in exhibit B.

  

	 	b.	Obsolescence 

  

	 	i.	Any redesign required to replace obsolete components unique to AtriCure products must have prior approval by AtriCure. 

  

	 	ii.	Stellartech will be compensated for design and development efforts required to replace obsolete components unique to AtriCure products as set forth in exhibit B.

  

	 	2.	Enhancements to ASU2/3 product design 

  

	 	a.	Changes to the features and performance of the ASU2/3 

  

	 	i.	AtriCure may request minor enhancements to the product features and performance that are not included in the current product specification. AtriCure will provide specification
revisions covering such changes. 

  

	 	ii.	Stellartech will provide cost and delivery estimates for such changes. 

  

	 	iii.	Stellartech will be compensated for such design changes as set forth in exhibit B. 

  

	 	3.	Development of new products 

  

	 	a.	Separate contracts will be developed for each engineering or design effort that is beyond the scope of 1. and 2. above. 

  
 For Licenses see Section 6.3. 
  

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 Exhibit B 
  

A. Engineering, Design, and Prototyping Rates. Stellartech will bill for design and development services at the following rates. 
  

											
	 Administrative Services
	  	$	[	*]/hr	 	 	  	 	 	 
	 Assembly
	  	$	[	*]/hr	 	 Documentation/Drafting
	  	$	[	*]/hr
	 Technician
	  	$	[	*]/hr	 	 Industrial/Graphic Design
	  	$	[	*]/hr
	 Engineer
	  	$	[	*]/hr	 	 Senior Engineer
	  	$	[	*]/hr
	 Senior Project Manager
	  	$	[	*]/hr	 	 Senior Executive Manager
	  	$	[	*]/hr

  
 Stellartech agrees to
hold these prices constant through December 31, 2006. Rate increases may not exceed [*] percent ([*]%) in any given twelve (12) month period without prior written consent of Company. Materials and components, out-of-pocket expenses, and outside
services are billed at cost plus [*]%. Out-of-town trips are charged at ten (10) hours per day. 
  
 B. Payments; Late Fees. All payments shall be due within thirty (30) days of invoicing. Company shall pay a late fee equal to the lesser of 12% per annum
or the maximum amount permitted by law upon any amounts which have not been received within sixty (60) days of invoicing. 
  

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

  
  

 9 of 9Manufacturing Agreement, dated 06/01/2005

 Exhibit 10.4 
  
 Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the
confidentiality request. Omissions are designated as [*]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission pursuant to Rule 406 of the Securities Act of 1933, as amended. 
  
 ATRICURE-STELLARTECH MANUFACTURING AGREEMENT 
  
 THIS MANUFACTURING AGREEMENT (this “Agreement”) is entered as of
the first day of June 1, 2005 (the “Effective Date”) by and between AtriCure, Inc., a Delaware corporation, with a place of business at West Chester, Ohio and Stellartech Research Corporation, a California corporation, with its principal
place of business at 1346 Bordeaux Dr., Sunnyvale, California 94089 (“Stellartech”). 
  
 RECITALS 
  

	A.	AtriCure, Inc. is a developer and manufacturer of medical products and devices; in particular, electrosurgical devices used in general and thoracic surgery.

  

	B.	Stellartech is a contract developer and manufacturer of medical products, systems, and catheters and surgical tools; in particular, electronic hardware and software systems for
interfacing with medical catheters, and catheters and surgical tools. 

  

	C.	This Agreement describes the terms and conditions under which Stellartech shall manufacture such electronic hardware and software systems, and catheters and surgical tools, for
AtriCure, Inc. 

  
 NOW, THEREFORE, in consideration
of the mutual promises provided herein, the parties agree to the following. 
  

	1.	DEFINITIONS. In addition to the other capitalized terms used throughout this Agreement, the following terms shall have these meanings ascribed to them:

  
 1.1. “Acceptance Criteria” shall have
the meaning set forth in Section 6.2. 
  
 1.2. “Confidential
Information” shall mean any and all information, data, know-how, whether written, oral or computer readable, technical or non-technical, including without limitation, financial information, software, models, designs, devices, methods, and
drawings or diagrams; provided that such information is labeled “Confidential” or “Proprietary” or words of similar import, or if provided orally, such information is disclosed as confidential at the time of disclosure.

  
 1.3. “FDA” shall mean the U.S. Food and Drug
Administration. 
  
 1.4. “Product” shall mean electronic
hardware and software systems, as developed by Stellartech for AtriCure, Inc. under the Development Agreement dated September 15, 2001, including any derivative improvements or modifications that Stellartech may make thereto under this Agreement,
and as manufactured by Stellartech in accordance with the Specifications hereunder. 
  
 1.5. “Intellectual Property” shall mean patents, copyrights, trade secrets, trade marks, trade names, applications or registrations for any of the foregoing and any other form of intellectual property as may
be recognized in any jurisdiction in the world. 
  
 1.6.
“Manufacturing License” shall mean the exclusive, nontransferable (except as provided in Section 13.8 below), worldwide, royalty-free license to use the Stellartech Technology (as defined in the Development Agreement) solely in connection
with the use, sale and distribution of products manufactured by AtriCure, Inc., or manufactured for AtriCure, Inc. by Stellartech, as provided for in Section 3.1 below, for use in the field of Cardiac Arrhythmia Treatment. AtriCure, Inc. shall not
otherwise be entitled to use, license or commercially exploit the Stellartech Technology without Stellartech’s prior written consent, which may be withheld at Stellartech’s sole discretion. 
  
  

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 1.7. “Parts” shall mean any component incorporated in or on, or constructed to work in
conjunction with, a Product. 
  
 1.8. “Regulatory Body”
shall mean the governing or controlling entity which regulates and/or approves the manufacture, sale, or use of Products in a given country, including for example the FDA in the United States. 
  
 1.9. “Second Source” shall mean AtriCure, Inc. or any third party
other than Stellartech who manufactures and/or supplies Products to or for AtriCure, Inc. 
  
 1.10. “Specifications” shall mean the Product specifications developed by the parties under the Development Agreement and/or as may be modified by mutual agreement of the parties. 
  
 1.11. “Quality Systems Audit” shall mean a formal audit, performed
by AtriCure, Inc.’s Supplier Quality Management department, of Stellartech’s quality systems for determining compliance with FDA and ISO regulations, and compliance with the requirements of an approved supplier. 
  

	2.	PRODUCT DEVELOPMENT. 

  
 2.1. Development Conditions. The rights and obligations related to Stellartech’s manufacture and supply of Products under this Agreement are
contingent upon the expiration or termination of the Development Agreement, subject to certain rights to terminate this Agreement under Section 11 below. 
  
 2.2. New Developments by Stellartech. During the term of this Agreement, Stellartech shall: 
  
 (a) Awareness of New Developments. Keep AtriCure, Inc. apprised of new developments in Stellartech products or technologies
which Stellartech believes have potential application to the Products or Parts and which are not confidential to or subject to exclusive rights of any third party or parties, wherein Stellartech’s disclosures of such new developments shall be
subject to the confidentiality provisions of Section 8; and 
  
 (b) Availability of New Developments to AtriCure, Inc, Make available such new developments for incorporation into the Products, subject to written agreement between AtriCure, Inc. and Stellartech as to such incorporation into the Products,
and to commercially appropriate adjustments, if any, in the purchase price for the Products to AtriCure, Inc. as the parties may agree in writing. 
  

	3.	MANUFACTURE AND SUPPLY OF PRODUCTS BY STELLARTECH. 

  
 3.1. Manufacture and Supply of Products by Stellartech. Subject to the terms and conditions hereof, Stellartech shall manufacture and supply Products to
AtriCure, Inc. AtriCure, Inc. shall satisfy the following apportioned share of its requirements from Stellartech: (i) all of the first four hundred (400) Products required by AtriCure, Inc. subsequent to the manufacture of all Products under the
Development Agreement; and (ii) no less than 75% of AtriCure, Inc.’s additional requirements for Products after completion of the first four hundred (400) Products, since January 2004, for the period of time up to and including twenty four (24)
months after delivery of the 400 units (“Stellartech 75% Period”). AtriCure, Inc. may manufacture or have manufactured, by Stellartech or otherwise, any and all Products beyond those allocated exclusively for Stellartech to manufacture
under this Section, in any manner, and at AtriCure, Inc.’s sole discretion. Notwithstanding AtriCure, Inc.’s requirements allocation to Stellartech as provided for herein, nothing in this Section 3.1 shall be construed as requiring
AtriCure, Inc. to have any Products manufactured or supplied, by Stellartech or otherwise. AtriCure, Inc. may buy out Stellartech’s right to manufacture Products at any time during the Stellartech 75% Period, after taking delivery of the first
four hundred (400) Products, by paying Stellartech either [*]% of the gross margin Stellartech would have received if it had manufactured the Products during the Stellartech 75% Period, or $[*]. 
  

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

  

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 3.2. Repair and Replacement. (See Section 9.3 for Product Warranty) During the term hereof, and as may be
reasonably required from time to time by AtriCure, Inc., its customers, agents, or transferee of AtriCure, Inc.’s rights hereunder, Stellartech shall perform any and all reasonable repairs to, or where necessary shall replace, any returned
Products (including without limitation relevant Parts) that had been previously manufactured by Stellartech for or on behalf of AtriCure, Inc. Unless a returned Product falls under the product warranty provisions provided under Section 9, such
repair and replacement by Stellartech shall be at AtriCure, Inc.’s expense according to rates for labor and materials not to exceed the rates charged by Stellartech for the labor and materials in the manufacture of such Products, per Exhibit A.
The minimum charge for such repair and replacement shall be $[*]. At AtriCure, Inc.’s request, Stellartech shall furnish vendor and part number information for commercially available Parts. Responsibility for receiving and processing any
complaints from AtriCure, Inc. customers or other end-users regarding the performance or use of any returned Products shall be as provided in Section 3.4 below. Stellartech will make a diligent effort to determine the root cause of failures found in
units returned for repair and will provide a root cause report. 
  
 3.3. Manufacturing Standards. All Products ordered by AtriCure, Inc. hereunder from Stellartech shall be manufactured by Stellartech or by such regulatory-qualified subcontractor(s) as may be appointed by Stellartech. Such manufacture shall
be conducted according to mutually agreed-upon standards and under applicable Regulatory Body standards, guidelines, or requirements, including without limitation applicable regulations of the FDA and of all other applicable U.S. agencies governing
manufacturing of the Products for such sale within or export from the United States, in addition to any applicable CE regulations. 
  
 3.4. Regulatory Approval/Compliance. Stellartech shall diligently assist AtriCure, Inc. in obtaining and maintaining, to the extent required by law as to
Products and Parts manufactured or sold under this Agreement, all regulatory approvals and/or market clearances as may be required by any Regulatory Body for the manufacture, sale, and use of Products and relevant Parts, including without limitation
obtaining and maintaining compliance with related FDA and CE mark approvals. AtriCure, Inc. shall pay Stellartech for such regulatory assistance in accordance with standard “time and materials” rates as provided in EXHIBIT A. Stellartech
shall maintain its facilities and operation for manufacturing Products and related Parts in full compliance with applicable regulatory standards (minimum US FDA QSR and ISO 13485 or 13488) as required by any such Regulatory Body. AtriCure, Inc.
shall be responsible for receiving and processing any complaints from AtriCure, Inc. customers or other end-users regarding the performance or use of any Products. The parties shall as promptly as possible inform each other in writing with respect
to, and shall furnish the other with a copy of, all such approvals, clearances, or other regulatory compliance information related to the manufacture and sale of Products and Parts. AtriCure, Inc. shall, to the extent lawfully permitted, supply
promptly to Stellartech all AtriCure, Inc. information in AtriCure, Inc.’s possession, within a reasonable time after such information is requested by Stellartech in writing, as is necessary to enable Stellartech to perform its obligations
hereunder including with respect to regulatory compliance. 
  
 3.5. AtriCure, Inc. Inspection/Audit of Stellartech Facilities/Operation; Right to Cure. AtriCure, Inc. shall have the right, but not the duty, to inspect any and all Stellartech facilities and/or operations manufacturing Products or
related Parts, upon reasonable written notice provided to Stellartech. To the extent relevant to this Agreement, Stellartech shall make available any and all of its facilities, operations, and documents or other relevant information, in addition to
at least one designated employee, contractor, or agent of Stellartech in order to assist AtriCure, Inc. in any such inspection. In the event that AtriCure, Inc. determines that Stellartech’s facilities or manufacturing operations do not comply
with the terms of this Agreement, including but not limited to failing to comply with any applicable regulatory standard of a Regulatory Body, then AtriCure, Inc. shall promptly notify Stellartech as to the nature of such finding, including without
limitation any specific defects discovered, and Stellartech shall have: fifteen (15) days to respond to such notice to AtriCure, Inc.; and thirty (30) days to cure any actual defect(s) and to provide a writing to AtriCure, Inc. identifying the steps
taken to cure the defect(s) and attesting to Stellartech’s substantial compliance with this Agreement. 
  

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

  

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 3.6. Product Marking/Trademark License. Products and Parts manufactured by Stellartech for AtriCure, Inc.
under this Agreement shall be marked according to marking specifications provided by AtriCure, Inc. to Stellartech, which marking specifications shall be established at AtriCure, Inc.’s sole discretion; provided, however, that AtriCure, Inc.
shall not unreasonably deny any Stellartech request to provide with or on any Product any mark identifying Stellartech or otherwise, such as for example, but not limited, to providing adequate warnings on or with Products, as is necessary to prevent
Stellartech from incurring any liability arising from the manufacture, sale, or use of Products. AtriCure, Inc. grants to Stellartech a nonexclusive, royalty-free, non-transferable worldwide license during the term of this Agreement, revocable for
the failure of Stellartech to perform its obligations under this Agreement, to use AtriCure, Inc.’s trademarks, which are to be described and provided by AtriCure, Inc. to Stellartech during the course of performing under this Agreement, which
trademarks are to be used in accordance with usage guidelines as AtriCure, Inc. may provide from time to time and to the extent necessary for Stellartech to perform it’s obligations hereunder. Stellartech may apply AtriCure, Inc.’s
trademarks only to Products and Parts, instruction manuals for Products and Parts, cartons for Products and Parts and other relevant documents and packaging provided by Stellartech to AtriCure, Inc., or to any third party designated by AtriCure,
Inc. in its sole discretion, under the terms hereof or as may be otherwise authorized in writing by AtriCure, Inc. from time to time. AtriCure, Inc. may, at AtriCure, Inc.’s election, market the Products and/or Parts, as incorporated in
AtriCure, Inc. products, or on a stand-alone basis, under AtriCure, Inc.’s own name and trademarks. 
  
 3.7. AtriCure, Inc.’s Manufacturing Rights. In addition to other rights hereunder this Agreement and the Development Agreement, and subject to
AtriCure, Inc. first satisfying the requirements of Section 3.1 of this Agreement, Stellartech acknowledges and agrees that AtriCure, Inc. may manufacture, have manufactured and/or sublicense the manufacture of Products, and Stellartech shall not
hinder, nor otherwise interfere with, AtriCure, Inc.’s rights with regards thereto. Stellartech shall use commercially reasonable efforts to effect any technology or information transfer associated with the Manufacturing License to AtriCure,
Inc. (and/or its designees and sublicensees) as may be necessary in order for AtriCure, Inc. to fully exploit such Manufacturing License. AtriCure, Inc. shall pay Stellartech for such assistance in accordance with standard “time and
materials” rates as provided in Exhibit A. 
  
 3.8. No Other
License Rights. Other than the specific license rights granted herein and under the Development Agreement by the parties to each other, neither party shall have any express or implied license or other rights to any confidential or proprietary rights
of the other. Other than those rights which are explicitly granted in this Agreement, this Agreement grants neither party any rights to use the other party’s trademarks, trade names or service marks. Neither party shall, nor shall attempt to,
acquire the other’s names, marks, logos, symbols, or the like, or any that are confusingly similar thereto. 
  

	4.	ORDER AND ACCEPTANCE. 

  
 4.1. AtriCure, Inc. Forecast. To facilitate Stellartech’s production scheduling, AtriCure, Inc. shall provide Stellartech with a quarterly rolling
forecast of AtriCure, Inc’s. anticipated quarterly requirements of Products for the following twelve (12) month period commencing on the date of such forecast. This forecast shall be for Stellartech’s planning purposes only. It is
understood that AtriCure, Inc. shall use reasonable efforts to make each forecast as accurate as possible. 
  
 4.2. Form of Purchase Orders. AtriCure, Inc. will submit written purchase orders for Products or spare parts to Stellartech with a lead time of at least
ninety (90) days prior to the specified delivery date with respect to Products or Parts ordered therein, and Stellartech shall use best efforts to deliver any such Products or Parts in accordance with the terms of the corresponding purchase order.
All orders for Products and Parts submitted by AtriCure, Inc. to Stellartech during the term hereof shall be subject to the terms and conditions of this Agreement, except as otherwise agreed to in a writing signed by both parties. In the event of a
conflict between the terms of any AtriCure, Inc. purchase order or Stellartech acknowledgment and the terms of this Agreement, the terms of this Agreement shall control. 
  

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 4.3. Acceptance or Rejection of Orders By Stellartech. No purchase order placed by AtriCure, Inc. shall
be binding upon Stellartech until accepted by Stellartech in writing, which may be by facsimile, and Stellartech shall have no liability to AtriCure, Inc. with respect to purchase orders, or portions thereof, that are not so accepted. Stellartech
shall notify AtriCure, Inc. promptly of the acceptance or rejection by Stellartech of a AtriCure, Inc. purchase order, or portion thereof, and of the agreed assigned delivery date for accepted orders. Stellartech shall be deemed to have accepted a
AtriCure, Inc. purchase order, or any portion thereof, to which Stellartech has not objected to AtriCure, Inc. in writing: (i) no later than fifteen (15) business days after the date of such AtriCure, Inc. purchase order, if sent first by AtriCure,
Inc. by facsimile; or (ii) no later than twenty (20) business days after the date of such AtriCure, Inc. purchase order, if such purchase order is first sent by AtriCure, Inc. by airmail or courier. 
  
 4.4. Delivery Dates; Partial Shipments. Stellartech shall use best efforts to
deliver Products and Parts on the dates specified in its written acceptance of AtriCure, Inc.’s purchase orders. Partial shipments shall be allowed only to the extent agreed in writing by AtriCure, Inc. before such partial shipment is shipped.

  
 4.5. Assurances; Substitute Performance. 
  
 (a) Assurance of Performance. In the event that AtriCure, Inc. reasonably
believes that Stellartech will not perform any obligation under this Agreement, including but not limited to its obligation to deliver compliant Products or Parts in accordance with any purchase order, AtriCure, Inc. shall have the right to demand
reasonable assurances that Stellartech is ready, willing, and able to perform such obligation, including but not limited to delivering such compliant Products or Parts on the delivery date provided for under the respective purchase order
(“Assurance of Performance”). 
  
 (b) Substitute
Performance; Second Source. In the event that Stellartech fails to provide adequate Assurance of Performance under Section 4.5(a), then AtriCure, Inc. shall have the right, but not the obligation, to use a Second Source in order to perform
Stellartech’s obligations as to such purchase order (“Substitute Performance”), in addition to performing any other Stellartech obligation under this Agreement as determined by AtriCure, Inc. in its sole discretion. Stellartech shall
cooperate with AtriCure, Inc. in identifying, training, or transferring any information, documents, materials, products, processes or methods, or manufacturing and test equipment (to the extent specifically developed under this Agreement or under
the Development Agreement) as may be necessary in order to enable such Second Source to provide the Substitute Performance of Stellartech’s relevant obligations; provided, however, that such Second Source shall be obligated to protect
Stellartech’s Confidential Information in a manner consistent with this Agreement. AtriCure, Inc. shall pay Stellartech for such Second Source assistance in accordance with standard “time and materials” rates as provided in Exhibit A.

  
 (c) Other Second Source Rights; Stellartech Assistance. Upon
request from AtriCure, Inc. at any time during this Agreement, and at AtriCure, Inc.’s expense according to rates provided in Exhibit A, Stellartech shall assist AtriCure, Inc. in establishing, training, and maintaining a Second Source for the
purpose of manufacturing and/or supplying Products required by AtriCure, Inc. over and above Stellartech’s rights and obligations to manufacture and supply Products to AtriCure, Inc. as provided hereunder. In addition to other material terms,
it is contemplated that such Second Source Rights and related Stellartech obligations as provided hereunder this Section 4.5 are material terms to this Agreement. 
  

	5.	PRICING AND PAYMENT. 

  
 5.1. General Pricing Conditions. The price for Products manufactured and supplied by Stellartech under this Agreement shall be in accordance with Exhibit
A, attached hereto, and incorporated herewith. All Product and Part pricing shall be in United States dollars unless the parties otherwise agree in writing. The price for Parts shall be reasonable as agreed in good faith negotiation between the
parties. Any other charges to AtriCure, Inc. which are to be determined on a time-and-materials basis shall be in accordance with Exhibit A. 
  

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 5.2. Taxes. The purchase price for Products and Parts from Stellartech shall include without limitation
any taxes or duties that may be applicable to the Products. Where Stellartech has the legal obligation to collect such taxes, the appropriate amount shall be clearly identified in Stellartech’s invoice to AtriCure, Inc. and shall be paid by
AtriCure, Inc. unless AtriCure, Inc. provides Stellartech with a valid tax exemption certificate authorized by the appropriate taxing authority. Stellartech shall be solely liable for the proper and accurate accounting and payments on any such taxes
or duties to any third party, governmental agency or other controlling body. 
  
 5.3. Payment. Except as the parties may otherwise specifically agree in writing, Stellartech shall issue an invoice, or multiple invoices where appropriate such as for multiple serial orders of Products from AtriCure,
Inc., and AtriCure, Inc. shall pay Stellartech pursuant to such invoice for Products and/or Parts delivered to AtriCure, Inc. or its designated customer and accepted as specified hereunder, subject to the terms and conditions of this Agreement.

  
 5.4. Service Charges. Any invoiced amount not received by
Stellartech within thirty (30) days after its due date thereafter shall be subject, until paid, to a service charge of the lesser of one percent (1%) per month or the maximum permissible rate under applicable law. 
  
 5.5. Financial Records and Audit Rights. Stellartech shall keep complete and
accurate records reflecting all information necessary or useful in verifying the accuracy of each invoice. AtriCure, Inc. shall have the right to inspect all such records or to hire an independent certified public accountant to inspect all such
records (which accountant shall be reasonably acceptable to Stellartech and shall agree in writing to keep all information confidential except as needed to disclose any discovered discrepancies); provided that such audit: (i) is conducted during
normal business hours; (ii) is conducted no more often than semi-annually; and (iii) is conducted only after AtriCure, Inc. has given Stellartech ten (10) days prior written notice. AtriCure, Inc. shall bear the full cost and expense of such audit,
unless a discrepancy in excess of five percent (5%) of the overage in favor of Stellartech is discovered, in which event Stellartech shall bear the full cost and expense of such audit. Regardless of the amount of discrepancy discovered, all
discrepancies (and interest thereon, at the rate described in Section 5.4) shall be immediately due and payable or reimbursable, as the case may be. Stellartech shall provide itemized cost breakdowns, such as copies of materials invoices, to
AtriCure as requested by AtriCure. 
  

	6.	DELIVERY; INSTALLATION, INSPECTION AND ACCEPTANCE; TRAINING. 

  
 6.1. Shipping. All Products and Parts delivered by Stellartech pursuant to the terms of this Agreement shall be: 
  
 (a) Acceptance Criteria. Products and Parts which have passed the Acceptance
Criteria; 
  
 (b) Packaging. Suitably packed for freight shipment,
or other appropriate common carrier as may be communicated by AtriCure, Inc. in writing to Stellartech reasonably in advance of Stellartech’s planned shipment date, in Stellartech’s standard shipping cartons for such items, or in custom
packaging as may be agreed to between the parties, which in either case shall meet all packaging validation requirements worldwide for shipment of Products and Parts as communicated by AtriCure, Inc. to Stellartech in writing reasonably in advance
of Stellartech’s planned shipment date; 
  
 (c) Marking.
Marked for shipment to AtriCure, Inc.’s address set forth above, or to the address of such customer or other third party as AtriCure, Inc. may designate; and 
  
 (d) Delivery. FOB shipping point; wherein risk of loss and title are transferred from Stellartech to the purchasing party
upon shipment from Stellartech. All freight, insurance, and other shipping expenses shall be paid by Stellartech and invoiced to AtriCure, Inc.. 
  

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 6.2. Inspection and Acceptance. Products and Parts shall be delivered to AtriCure, Inc., or to the
respective AtriCure, Inc. customer or other third party, pursuant to, and along with a written copy of, commercially reasonable receiving and inspection protocols and acceptance criteria (collectively, the “Acceptance Criteria”), including
without limitation EN/ISO 13485 and Medical Device Directives or “MDD”, and installation procedures, as shall be agreed upon in writing by AtriCure, Inc. and Stellartech. Such written Acceptance Criteria shall provide, at a minimum, that:

  
 (a) Products and Parts conform to the Specifications; and

  
 (b) Unless otherwise specified by AtriCure, Inc. and agreed to
by Stellartech, inspection and acceptance testing under the Acceptance Criteria shall be performed at Stellartech’s facilities, by an individual or individuals who have received the inspection protocols for the Acceptance Criteria and are
properly trained with respect thereto; and 
  
 (c) Which of
AtriCure, Inc., Stellartech and/or third party personnel shall perform such inspection and testing; and 
  
 (d) Stellartech shall notify AtriCure, Inc., as soon as commercially possible, after a given Product or Part has met such Acceptance Criteria. 

 
 (e) AtriCure, Inc. may inspect Product upon receipt at AtriCure,
Inc.’s facilities according to AtriCure, Inc.’s quality system acceptance criteria. 
  
 The installation procedures and Acceptance Criteria shall contain Stellartech’s standard inspection testing procedures for such Product or Part, subject to such lawful modifications thereto as AtriCure, Inc. may
reasonably and in good faith request of Stellartech in writing. No Acceptance Criteria shall be established that call for conformance to requirements that are more stringent than the Specifications established for the Product. 
  
 6.3. Training. Stellartech shall provide, at AtriCure, Inc.’s expense
(charged at rates for labor and materials not to exceed the corresponding rates provided for the manufacture of Products per Exhibit A): (i) at AtriCure, Inc.’s premises, at reasonable periodic intervals, training as to proper installation,
use, service and repair of the Products and Parts; and (ii) at Stellartech’s premises, at the specific request of AtriCure, Inc., full access to all processes and methods, manufacture and test equipment, and any related information in relation
Stellartech’s manufacture and supply of Products and Parts. The frequency, format and content of the training shall be determined by the parties in consultation with each other. Such training with respect to the manufacturing processes shall be
designed to enable AtriCure, Inc. to be able to use and to instruct its subcontractor and sublicensee manufacturers to manufacture Products. AtriCure, Inc. shall pay its own costs of its personnel for travel, food, and lodging during such training
at Stellartech’s premises. 
  

	7.	POST DEVELOPMENT PRODUCT CHANGES. 

  
 7.1. Requested Modifications. After the Development Program, AtriCure, Inc. may request or Stellartech may suggest changes in the design or operation of
the Products relating to improvements, or the reliability or serviceability thereof. The parties shall promptly discuss such modifications in good faith and Stellartech shall make any modifications requested or approved by AtriCure, Inc., provided
AtriCure, Inc. agrees to pay the reasonable costs of implementing such changes (including possible scrapping or reworking of existing Products and Parts) in accordance with standard “time and materials” rates as provided in Exhibit A. It
is understood that such modifications may alter the Product prices hereunder as agreed to by the parties. 
  
 7.2. Mandatory Modifications. In the event any changes must be made in the Products (including any such changes required to comply with official
requirements such as governmental regulations or industrial standards), Stellartech shall make any such changes thereto. Any such changes, other than those due to Stellartech’s negligence, shall be paid for by AtriCure, Inc. in accordance with
standard “time and materials” rates as provided 

  

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in Exhibit A. It is understood that this may result in schedule changes, non-recurring expenses or Product price adjustments, which will be negotiated by the
parties in good faith at such time. With respect to Products changed to comply with such requirements that have been ordered but not yet delivered, an appropriate adjustment of the delivery date shall be agreed by the parties. 
  
 7.3. Validation Units. In the event any change effecting form, fit, function,
safety, reliability, or performance of the Product is made at AtriCure, Inc.’s request, AtriCure, Inc. shall pay Stellartech in accordance with standard “time and materials” rates as provided in Exhibit A for effecting such change(s)
and Stellartech shall ship to AtriCure, Inc. one or more validation units incorporating such changes. Within 30 days after receipt of such validation unit(s), AtriCure, Inc. shall notify Stellartech of whether it approves or disapproves of the
proposed changes. Stellartech shall not implement any proposed change(s) in any additional Products until the end of such 30 day period, or until AtriCure, Inc. provides notice of its approval of such change(s), whichever occurs earlier. 

 

	8.	CONFIDENTIALITY. 

  
 8.1. Duty. Each party may give the other party (hereinafter, respectively “Disclosing Party” and “Receiving Party”) access to its
Confidential Information. The parties, on behalf of itself and its employees, agree that any Confidential Information disclosed by Disclosing Party shall be disclosed on the following terms: 
  
 (a) Confidential Information disclosed by Disclosing Party to Receiving Party
hereunder shall be received and held in strict confidence until the later of (i) a period of three (3) years from the date of the expiration or termination of this Agreement; or (ii) for a period of three (3) years from the date of disclosure of
such Confidential Information to the Receiving Party; or (iii) in regards to particular Confidential Information which is protected by the Disclosing Party as “trade secret” information, as those terms are defined by the laws of the State
of California, and to the extent that the Disclosing Party notifies the Receiving Party of the trade secret status of such particular Confidential Information, the date upon which such particular Confidential Information loses its trade secret
status; and 
  
 (b) Receiving Party shall take all reasonable
steps as are necessary to prevent the unauthorized disclosure of Confidential Information to third parties; and 
  
 (c) Receiving Party shall not utilize Confidential Information except for the express purposes of: (i) performing or exercising its rights under this
Agreement; (ii) for use in obtaining approval by the FDA and any other governmental approval entities; or (iii) as otherwise expressly permitted in this Agreement, unless it obtains Disclosing Party’s prior written consent to such utilization
and 
  
 (d) Receiving Party may disclose Confidential Information
to its agents, consultants, collaborators and clinical investigators only to the extent necessary to fulfill its obligations and exercise its rights under this Agreement, file and prosecute patent applications, comply with governmental and
regulatory standards, guidelines, or requirements, or as otherwise expressly provided in this Agreement, provided such party(s) agrees to be bound by the terms of this Section 8.1. 
  
 8.2. Exceptions. The commitments set forth in Section 8.1 shall not extend to any information disclosed by one party to the
other party if one or more of the following conditions should exist: 
  
 (a) information which is now or becomes a part of the public domain without the fault of Receiving Party; 
  
 (b) information which Receiving Party can reasonably demonstrate through written documentation was already known to Receiving Party at the time of
disclosure; 
  

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 (c) information which is subsequently disclosed to Receiving Party by a third party having no obligation
of confidentiality to Disclosing Party or its representatives; 
  
 (d) information which is independently developed by or for Receiving Party and Receiving Party can prove this by documentary evidence; or 
  
 information which is required by law, regulation, rule, act or order of any governmental authority to be disclosed. Receiving Party shall give Disclosing Party timely,
prior notification if it intends to disclose any Confidential Information pursuant to the terms of the preceding sentence in order that Disclosing Party shall have an opportunity to intervene to limit or prevent disclosure of such Confidential
Information; Receiving Party shall disclose only the minimum Confidential Information required to be disclosed in order to comply with its disclosure obligations. 
  
 8.3. Transfer of Confidential Information. Any Confidential Information disclosed or otherwise developed by the Disclosing
Party and which by operation of assignment, exclusive license or otherwise, becomes the property of or may be solely used by or on behalf of the Receiving Party shall be treated thereafter as the Confidential Information of the Receiving Party for
all purposes hereof, including without limitation in accordance with Section 8. 
  

	9.	REPRESENTATIONS AND WARRANTIES. 

  
 9.1. Representations and Warranties of Stellartech. Stellartech hereby represents and warrants to AtriCure, Inc. as follows: 
  
 (a) Organization and Good Standing. Stellartech is a corporation duly
organized and validly existing under the laws of California, has the corporate power and authority to own, operate and lease its properties and to carry on its business as now conducted. 
  
 (b) Power, Authorization and Validity. No filing, authorization or approval with or from governmental authorities by
Stellartech, other than as provided hereunder or under the Development Agreement, is necessary to enable Stellartech to enter into, and to perform, its obligations under this Agreement. This Agreement is the valid and binding obligation of
Stellartech, enforceable in accordance with its terms. Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby, shall conflict with, or (with or without notice or lapse of time, or both)
result in a termination, breach, impairment or violation of: (i) any provision of the Articles of Incorporation or Bylaws of Stellartech, as currently in effect; (ii) any Product or contract to which Stellartech is a party or by which Stellartech is
bound; or (iii) to the best knowledge of Stellartech, any judgment, writ, decree, order, statute, rule or regulation applicable to Stellartech or its assets or properties in any material respect including without limitation the FDA rules and
regulations. 
  
 (c) Litigation. Stellartech has not received
notice of any action, proceeding, claim or investigation pending against Stellartech before any court or administrative agency that if determined adversely to Stellartech may be expected to have a material adverse effect on the present or future
operations or financial condition of Stellartech. To the best knowledge of Stellartech, no such action, proceeding, claim or investigation has been threatened. 
  

(d) Intellectual Property. Stellartech to the best of its knowledge owns or has sufficient rights, and/or has transferred to AtriCure, Inc. sufficient
rights under the Development Agreement, to use all Intellectual Property rights as shall be required for the performance by Stellartech of its obligations hereunder. To the best of Stellartech’s knowledge, the business of Stellartech as shall
be required for the performance by Stellartech of its obligations hereunder does not cause Stellartech, and shall not cause AtriCure, Inc., by use of Stellartech as an Product and Parts manufacturer and supplier to AtriCure, Inc. as provided herein,
to infringe or violate any of the Intellectual Property rights of any other person, and Stellartech has not received any claim or notice of infringement or potential infringement of the Intellectual Property of any other person. To the best
knowledge of Stellartech, Stellartech is not using any confidential information or trade secrets of any former employer of any past or present Stellartech employees or consultants. 
  

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 9.2. Representations and Warranties of AtriCure, Inc.. AtriCure, Inc. hereby represents and warrants to
Stellartech as follows: 
  
 (a) Organization and Good Standing.
AtriCure, Inc. is a corporation duly organized and validly existing under the laws of Delaware, has the corporate power and authority to own, operate and lease its properties and to carry on its business as now conducted. 
  
 (b) Power, Authorization and Validity. No filing, authorization or approval
with or from governmental authorities by AtriCure, Inc., other than as provided hereunder this Agreement or under the Development Agreement, is necessary to enable AtriCure, Inc. to enter into, and to perform, its obligations under this Agreement.
This Agreement is the valid and binding obligation of AtriCure, Inc., enforceable in accordance with its terms. Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby, shall conflict with,
or (with or without notice or lapse of time, or both) result in a termination, breach, impairment or violation of: (i) any provision of the Articles of Incorporation or Bylaws of AtriCure, Inc., as currently in effect; (ii) any Product or contract
to which AtriCure, Inc. is a party or by which AtriCure, Inc. is bound; or (iii) to the best knowledge of AtriCure, Inc., any judgment, writ, decree, order, statute, rule or regulation applicable to AtriCure, Inc. or its assets or properties in any
material respect. 
  
 (c) Litigation. AtriCure, Inc. has not
received notice of any action, proceeding, claim or investigation pending against AtriCure, Inc. before any court or administrative agency that if determined adversely to AtriCure, Inc. may be expected to have a material adverse effect on the
present or future operations or financial condition of AtriCure, Inc.. To the best knowledge of AtriCure, Inc., no such action, proceeding, claim or investigation has been threatened. 
  
 (d) Intellectual Property. AtriCure, Inc. to the best of its knowledge, and subject to Section 9.1(d), owns or has
sufficient rights to use all Intellectual Property rights as shall be required for the performance by AtriCure, Inc. of its obligations hereunder. To the best of AtriCure, Inc.’s knowledge, the business of AtriCure, Inc. as shall be required
for the performance by AtriCure, Inc. of its obligations hereunder does not cause AtriCure, Inc., and shall not cause Stellartech, by AtriCure, Inc.’s use of Stellartech as an Product and Parts manufacturer and supplier to AtriCure, Inc. as
provided herein, to infringe or violate any of the Intellectual Property rights of any other person, and AtriCure, Inc. has not received any claim or notice of infringement or potential infringement of the Intellectual Property of any other person.
To the best knowledge of AtriCure, Inc., AtriCure, Inc. is not using any confidential information or trade secrets of any former employer of any past or present AtriCure, Inc. employees or consultants. 
  
 9.3. Product Warranty. In conjunction with and in addition to, where
appropriate, Stellartech’s obligations to repair and replace Products or Parts as set forth in Section 3.2, Stellartech shall extend to AtriCure, Inc. and its end-user customers a products warranty on the intended use for Products and Parts,
which warranty shall be according to the terms set forth in a separate Service Agreement. Warranty information is covered under a separate Service Agreement. Such warranty shall provide, at a minimum, that Stellartech shall, at the expense of
Stellartech, including outbound shipping and insurance costs, repair or replace Products and Parts found defective upon receipt by AtriCure, Inc. or found defective by the end-user during the relevant warranty period. 
  

	10.	REMEDIES. 

  
 10.1. Indemnity by AtriCure, Inc. AtriCure, Inc. shall, at its expense, defend and indemnify Stellartech and Stellartech’s directors, officers,
employees, consultants, agents, shareholders and customers (“Stellartech Indemnitee(s)”), in any suit, claim or proceeding brought against any such Stellartech Indemnitee that is: (i) due to a breach of AtriCure, Inc.’s
representations or warranties hereunder; or (ii) due to the sale or use of any Product or Part, including but not limited to such liability arising from a defect in the manufacture or design of such Product or Part or arising from a claim of
Intellectual Property rights infringement unless there is evidence of gross negligence by Stellartech. Stellartech shall promptly notify AtriCure, Inc. of any such suit, claim, 

  

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proceeding or related allegation known to Stellartech. AtriCure, Inc. shall be given reasonable assistance from Stellartech and shall be permitted the
exclusive control of the defense. Further, to the extent AtriCure, Inc. is required hereunder to indemnify such Stellartech Indemnitees, AtriCure, Inc. shall pay any damages and costs finally awarded against any such Stellartech Indemnitee in any
such suit, claim, or proceeding by reason of any such liability, but AtriCure, Inc. shall have no liability for settlements or costs incurred without its written consent. 
  
 10.2. Insurance. Stellartech shall at all times during the term hereof obtain and maintain, at Stellartech’s expense,
fire and casualty, general liability, business interruption, and product liability insurance relating to the business of Stellartech, taking into account Stellartech’s respective obligations under this Agreement, and taking into account the
nature of the Products and Parts, in amounts (including without limitation, tail coverage) customary for its industry and size, with reputable insurers, with respect to such product liability insurance. In particular, Stellartech shall obtain and
maintain product liability coverage with respect to the Products in an amount, and with such coverage, and for such periods of time, as are customary, within the industry within which the Products would be considered to be included by national-level
United States medical products insurers, according to the type of product so considered and according to the particular use (i.e., clinical or commercial) to which the Products shall be used in the jurisdiction to which such insurance
relates. 
  

	11.	TERM AND TERMINATION. 

  
 11.1. Term. The initial term of this Agreement shall be for the period commencing on the Effective Date hereof, and, unless sooner terminated as provided
in this Agreement, continuing for a period of three (3) years thereafter, and the term hereof shall be automatically renewed thereafter for successive one (1) year terms, unless either AtriCure, Inc. or Stellartech gives the other written notice of
termination at least one hundred and eighty (180) days before the end of the then-current term, or unless otherwise sooner terminated as provided in this Agreement. 
  
 11.2. AtriCure, Inc.’s Right to Terminate Upon Occurrence of Triggering Events. AtriCure, Inc. may, at its sole
election, and upon notice to Stellartech terminate this Agreement immediately upon occurrence of any of the following events: 
  
 (a) Chronic Failure to Comply with Terms. As reasonably determined by AtriCure, Inc., in its sole discretion, Stellartech repeatedly fails to perform as
contemplated under this Agreement, including but not limited to: repeatedly manufacturing and supplying defective Products or Parts to AtriCure, Inc. or to other third parties on AtriCure, Inc.’s behalf; or repeatedly failing to provide such
Products or Parts according to the terms of purchase orders accepted by Stellartech; or repeatedly failing to accept reasonable purchase orders in accordance with prior purchase orders or in accordance with prospective manufacturing and/or supply
forecasts agreed to between the parties prior to such repeated failures. 
  
 (b) Completion of Requirements Period. AtriCure, Inc. completes its performance in acquiring the apportioned share of Products from Stellartech, as provided under Section 3.1 above; or 
  
 (c) Failure to Provide Adequate Assurance of Performance. Stellartech fails
to provide an adequate Assurance as provided under Section 4.5(a) above; or 
  
 (d) Development Agreement. Development Agreement is terminated for any reason prior to completion; or 
  
 (e) Stellartech Discontinue Notice. Stellartech delivers to AtriCure, Inc. a Stellartech Discontinue Notice under Section 11.5; or 
  
 (f) Bankruptcy. Proceedings are commenced by or against Stellartech for
bankruptcy, insolvency or debtor’s relief or Stellartech is liquidated or dissolved; or 
  

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 (g) Regulatory Issues. Stellartech fails to comply with regulatory standards, guidelines, or requirements
as contemplated under this Agreement and as determined by either (1) AtriCure, Inc., or any of its employees, consultants, or agents vested by AtriCure, Inc. with the responsibility for auditing and/or inspecting for Stellartech’s regulatory
compliance, subject to Stellartech’s right to cure under Section 3.5; or (2) an agent of any Regulatory Body. Stellartech shall be considered to fail to comply with a regulatory standard, guideline, or requirement for the purpose of this
Section 10.2(g) in the following circumstances (without limitation): (i) Stellartech loses any certification, approval, or clearance necessary to lawfully manufacture and/or supply the Products and/or any Part; or (ii) Stellartech’s
manufacturing operations relating to Products and/or Parts are shut down, suspended, or delayed by a Regulatory Body for failure to comply with applicable regulations, and either any such interruption exceeds 30 consecutive calendar days or there
more than five (5) separate occurrences of such interruption in any one year period; or (iii) Stellartech’s conduct or inaction with relation to regulatory compliance does or could impair or endanger the ability of AtriCure, Inc. to obtain,
sell, or use Products and/or Parts from Stellartech, or otherwise conduct its business, as contemplated by this Agreement. 
  
 11.3. Stellartech’s Right to Terminate Upon Occurrence of Triggering Events. Stellartech may, at its sole election, and upon notice to AtriCure, Inc.
terminate this Agreement if proceedings are commenced by or against AtriCure, Inc. for bankruptcy, insolvency or debtor’s relief, or if AtriCure, Inc. is liquidated or dissolved. 
  
 11.4. Rights to Terminate for Material Breach. Except as otherwise provided expressly herein to the contrary, either party
hereto may terminate this Agreement by notice to the other if the other party materially breaches this Agreement and such breach remains uncured for a reasonable period not to exceed sixty (60) days following delivery to the breaching party of a
written notice of such breach and setting forth in reasonable detail the nature of the breach. 
  
 11.5. Rights to Terminate for Convenience. Stellartech may terminate this Agreement and discontinue the manufacture or supply of Products hereunder at any time, provided however that Stellartech shall give at least
six (6) months prior written notice thereof to AtriCure, Inc. (“Stellartech Discontinue Notice”). AtriCure, Inc. may terminate this Agreement at any time, subject to the following limitations: 
  
 (a) AtriCure, Inc. shall give Stellartech written notice at least six (6)
months prior to such termination (“AtriCure, Inc. Discontinue Notice”); and 
  
 (b) so long as AtriCure, Inc. continues in the business of manufacturing or supplying Products, and unless another ground for termination may be established other than under this Section 11.5, then AtriCure, Inc. may
not terminate under this Section 11.5 until after meeting all of its obligations to order Products from Stellartech as provided under Section 3.1 and otherwise hereunder. 
  
 11.6. Fulfillment of Orders Upon Termination or Expiration; Payments Upon Termination. Any termination of this Agreement, or
expiration of the term hereof, shall not relieve Stellartech from the obligation of fulfilling all outstanding purchase orders from AtriCure, Inc. accepted by Stellartech prior to the date of termination; provided, however, that if termination is as
a result of breach by AtriCure, Inc. of its obligation to pay amounts due hereunder to Stellartech, which amounts are accounted for and invoiced to AtriCure, Inc. according to the terms of this Agreement, Stellartech may demand from AtriCure, Inc.
commercially reasonable assurance of payment, such as prepayment or letters of credit, prior to shipment of Products and/or Parts by Stellartech, to ensure payment for such post-termination fulfillment of orders. 
  
 11.7. Transition Assistance. In the event of any termination of this
Agreement for any reason, including without limitation any breach by Stellartech or by AtriCure, Inc., except excluding any termination by AtriCure, Inc. for convenience under Section 11.5, and if after such termination AtriCure, Inc. is not, by
virtue of the application of the terms of this Agreement, able to manufacture, or have manufactured Products or relevant Parts without active assistance from Stellartech, then Stellartech shall render such commercially reasonable assistance, as
AtriCure, Inc. may reasonably request of Stellartech, in order to assist AtriCure, Inc. in identifying qualified 

  

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manufacturers of Products and relevant Parts, and in transitioning any and all materials, methods, equipment, and supporting documentation necessary to
manufacture of such substitute Products or relevant Parts as soon as possible. All trade secret and proprietary technologies including, but not limited to, software source code shall be placed into escrow with an escrow agent acceptable to both
Stellartech and AtriCure. Such Stellartech assistance shall be paid for by AtriCure, Inc. according to the cost basis provided under Exhibit A. 
  
 11.8. Survival. The rights and obligations under the following Sections, and as limited hereunder, shall survive termination of this Agreement and shall
remain in effect into perpetuity in accordance with their terms: Sections 1, 3.4 (to the extent AtriCure, Inc. requires information from Stellartech in relation to Products manufactured by Stellartech), Section 3.5 (only in relation to information
regarding Products manufactured under this Agreement), 3.6, 3.7, 8, 9, 10,11,12, and 13. 
  

	12.	DISPUTE RESOLUTION. 

  
 12.1. Any controversy or claim arising out of or relating to this Agreement or the validity, inducement, or breach thereof except for the matters
addressed in Section 13.11, shall be settled by arbitration before a single arbitrator in accordance with the Commercial Arbitration Rules of the American Arbitration Association (“AAA”) then pertaining, except where those rules conflict
with this provision, in which case this provision controls. The parties hereby consent to the jurisdiction of the federal district court for the district in which the arbitration is held for the enforcement of this provision and the entry of
judgment on any award rendered hereunder. Should such court for any reason lack jurisdiction, any court with jurisdiction shall enforce this clause and enter judgment on any award. The arbitrator shall be an attorney who has at least 15 years of
experience with a law firm or corporate law department of over 25 lawyers or was a judge of a court of general jurisdiction. The arbitration shall be held in California, and in rendering the award the arbitrator must apply the substantive law of
California (except where that law conflicts with this clause), except that the interpretation and enforcement of this arbitration provision shall be governed by the Federal Arbitration Act. The arbitrator shall be neutral, independent,
disinterested, impartial and shall abide by The Code of Ethics for Arbitrators in Commercial Disputes approved by the AAA. Within 45 days of initiation of arbitration, the parties shall reach agreement upon and thereafter follow procedures assuring
that the arbitration will be concluded and the award rendered within no more than eight months from selection of the arbitrator. Failing such agreement, the AAA will design and the parties will follow procedures that meet such a time schedule. Each
party has the right before or, if the arbitrator cannot hear the matter within an acceptable period, during the arbitration to seek and obtain from the appropriate court provisional remedies such as attachment, preliminary injunction, replevin,
etc., to avoid irreparable harm, maintain the status quo or preserve the subject matter of the arbitration. THE ARBITRATOR SHALL NOT AWARD ANY PARTY PUNITIVE, EXEMPLARY, MULTIPLIED OR CONSEQUENTIAL DAMAGES, AND EACH PARTY HEREBY IRREVOCABLY WAIVES
ANY RIGHT TO SEEK SUCH DAMAGES. NO PARTY MAY SEEK OR OBTAIN PREJUDGMENT INTEREST OR ATTORNEYS’ FEES OR COSTS. 
  

	13.	GENERAL. 

  
 13.1. Amendment; Waiver. Except as otherwise expressly provided herein, any provision of this Agreement may be amended and the observance of any provision
of this Agreement may be waived (either generally or in any particular instance and either retroactively or prospectively) only with the written consent of the parties. Waivers and amendments shall be effective only if made by non-pre-printed
agreements clearly understood by both parties to be an amendment or waiver. The failure of either party to enforce its rights under this Agreement at any time for any period shall not be construed as a waiver of such rights. 
  
 13.2. Governing Law and Legal Actions. This Agreement shall be governed by
and construed under the laws of the State of California and the United States without regard to conflicts of laws provisions thereof. In any action or proceeding to enforce rights under this Agreement, the prevailing party shall be entitled to
recover costs and attorneys’ fees. 
  

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 13.3. Notices. Notices, consents, requests or approvals under this Agreement shall be sufficient only if
made in writing and personally delivered; or delivered by a major commercial rapid delivery courier service; or mailed by certified or registered mail, return receipt requested; or faxed and subsequently followed by delivery of an original writing;
in each case to the parties’ addresses first set forth above or as amended by notice pursuant to this Section 13.3. If not received sooner, notice by mail shall be deemed received five (5) days after deposit in the U.S. mails. 
  
 13.4. Entire Agreement. This Agreement supersedes all proposals, oral or
written, all negotiations, conversations, or discussions between or among parties relating to the subject matter of this Agreement and all past dealing or industry custom. 
  
 13.5. Reformation. If any provision of this Agreement is held by any court of competent jurisdiction to be invalid or
unenforceable as applied to any particular facts or circumstances, then: (i) the validity and enforceability of such provision as applied to any other particular facts or circumstances shall not in any way be affected or impaired thereby; and (ii)
such provision shall be reformed without further action by the parties and only to the extent necessary to make such provision valid and enforceable when applied to such particular facts and circumstances. 
  
 13.6. Relationship of Parties. The parties hereto expressly understand and
agree that the other party is an independent contractor in the performance of each and every part of this Agreement. Each party (the “Indemnifying Party”) is solely responsible for all of its employees and its labor costs and expenses
arising in connection with this Agreement and is responsible for and shall indemnify the other party from any and all claims, liabilities, damages, debts, settlements, costs, attorneys’ fees, expenses, and liabilities arising out of conduct or
omissions of the Indemnifying Party’s employees relating to personal injury or workman’s compensation. 
  
 13.7. Assignment. The rights and obligations of the parties hereto are personal in nature and may not be assigned without the other party’s prior
written consent, except in connection with a sale or transfer of all or substantially all of the business or assets of the assigning party pertaining to the subject matter hereof, whether by merger, reorganization, acquisition or otherwise.

  
 13.8. Publicity and Press Releases. Except to the extent
necessary under applicable laws the parties agree that no press releases or other publicity relating to the substance of the matters contained herein shall be made without joint approval, which approval shall not be unreasonably withheld.

  
 13.9. Force Majeure. No liability or loss of rights hereunder
shall result to either party from delay or failure in performance (other than payment) caused by force majeure, that is, circumstances beyond the reasonable control of the party affected thereby, including, without limitation, acts of God, fire,
flood, war, government action, compliance with laws or regulations (including without limitation, those related to infringement), strikes, lockouts or other serious labor disputes, or shortage of or inability to obtain material or equipment.

  
 13.10. Remedies. Except as otherwise expressly stated in this
Agreement, the rights and remedies of a party set forth herein with respect to failure of the other to comply with the terms of this Agreement (including, without limitation, rights of full termination of this Agreement) are not exclusive, the
exercise thereof shall not constitute an election of remedies and the aggrieved party shall in all events be entitled to seek whatever additional remedies may be available in law or in equity. 
  
 13.11. The parties contemplate and agree that irreparable injury may result
and damages may be difficult to ascertain in the event that certain provisions of this Agreement are breached, and therefore agree that equitable relief such as injunctions or specific performance may be sought, in addition to other remedies
available under law or equity, in order to adequately enforce such provisions, including but not limited to the following: (i) enforcing the provisions protecting Confidential Information under Section 8; and (ii) compelling Stellartech’s

  

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performance according to Section 3 in the event that AtriCure, Inc. can not adequately seek Substitute Performance or can not otherwise find adequate cover
such that AtriCure, Inc. would be otherwise unable to conduct business as contemplated hereunder. 
  
 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their authorized representatives below as of the date first written above.

  

									
	 Stellartech Research Corporation
	 	 	 	 AtriCure, Inc.

					
	By	 	

	 	 	 	By	 	

	 Name
	 	Roger A. Stern, Ph.D.	 	 	 	 Name
	 	David J. Drachman
	 Title
	 	President	 	 	 	 Title
	 	Chief Executive Officer
					
	 Date:
	 	 June 16, 2005
	 	 	 	 Date:
	 	 6/16/05

  

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 EXHIBIT A 
  

TIME-AND-MATERIALS COST BASIS 
  
 A. Engineering, Design, and Prototyping Rates. Stellartech will bill for design and development services at the following rates. 
  

											
	 Administrative Services
	  	$	[	*]/hr	 	 	  	 	 	 
	 Assembly
	  	$	[	*]/hr	 	 Documentation/Drafting
	  	$	[	*]/hr
	 Technician
	  	$	[	*]/hr	 	 Industrial/Graphic Design
	  	$	[	*]/hr
	 Engineer
	  	$	[	*]/hr	 	 Senior Engineer
	  	$	[	*]/hr
	 Senior Project Manager
	  	$	[	*]/hr	 	 Senior Executive Manager
	  	$	[	*]/hr

  
 Stellartech agrees to
hold these prices constant through December 31, 2006. Rate increases may not exceed [*] percent ([*]%) in any given twelve (12) month period without prior written consent of Company. AtriCure has the option to deal directly with Stellartech vendors
on non operational issues when agreed upon by Stellartech in writing. Materials and components, out-of-pocket expenses, and outside services are billed at cost plus [*]%. Out-of-town trips are charged at ten (10) hours per day. 
  

	 	•	 	Product Transfer Pricing 

  
 Atricure will commit to ordering at least 400 units during an 18 month calendar period (starting on January 2004). Stellartech will commit to a transfer
price of $[*] per unit for units shipped during the term of this agreement. 
  

	 	•	 	Pricing will be $[*] per unit after 400 units are purchased for the balance of 2005. 

  

	 	•	 	Pricing will remain at $[*] per unit for 2006, if AtriCure maintains a quarterly purchase quantity of (50) units. 

  

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

  

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