Document:

Filed by sedaredgar.com - Response Biomedical Corporation - Exhibit 4.6

ROCHE DIAGNOSTICS,
SALES AND DISTRIBUTION AGREEMENT
V.12 06_19_2008 
Certain
Information in this exhibit has been omitted as confidential, as indicated by
[***]. This information has been filed separately with the Commission.

SALES AND DISTRIBUTION AGREEMENT 

This Supply Agreement (the “Agreement”), effective as of
June 25th, 2008 (the “Effective Date”), is by and between Response
Biomedical Corporation, a Canadian corporation having its principal place of
business at 1781-75th Avenue W., Vancouver, BC V6P 6P2 Canada (the
“Supplier”), Roche Diagnostics Ltd, a Swiss corporation having its
registered office at Forrenstrasse, 6343 Rotkreuz, Switzerland (“RDR”) and Roche
Diagnostics Operations, Inc., a Delaware corporation having its principal place
of business at 9115 Hague Road, Indianapolis, Indiana 46250 (“RDO”). RDR,
RDO and Supplier are collectively referred to herein as the “Parties” and
each individually as a “Party.” 

R E C
I T A
L S: 

  
    WHEREAS, Supplier manufactures and
      sells certain cardiac marker products for in-vitro diagnostics, including
      instruments, reagents, controls, parts, accessories and service more particularly
      described on Exhibit A attached hereto (the “Products”);
      and

    WHEREAS, RDR and RDO desire to purchase
      the Products from Supplier, and Supplier is willing to sell and supply the
      Products to RDR and RDO (and/or certain designated Ordering Entities), all
      in accordance with the pricing and other terms and conditions set forth
      in this Agreement. 

  

NOW, THEREFORE,
in consideration of these premises, of the mutual covenants contained
herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties agree as follows: 

1.      
 DEFINITIONS 

For purposes of this Agreement, capitalized terms not otherwise
defined in this Agreement shall have the meanings set forth in this Article
1. 

	1.1 	
      “Affiliate” – with respect to a specified Party to
      this Agreement, any individual, association or other entity that directly
      or indirectly controls, is directly or indirectly controlled by, or is
      directly or indirectly under common control with such specified Party. For
      purposes of this definition, “control” (including
      “controlling,” “controlled by,” and “under common control
      with”) means owning fifty percent (50%) or more of the outstanding
      voting securities of an entity, or otherwise possessing, directly or
      indirectly, the power to direct or cause the direction of the management
      and policies of an individual, association, or other entity, whether
      through the ownership of voting securities, by contract or otherwise.
      Notwithstanding the foregoing, for purposes of this Agreement, Genentech,
      Inc., a Delaware corporation, 1 DNA Way, South San Francisco, California
      94080-4990, U.S.A. and Chugai Pharmaceutical Co., Ltd, 1-9, Kyobashi
      2-chome, Chuo-ku, Tokyo, 104-8301, Japan, shall not be considered
      Affiliates of RDO or RDR unless RDO or RDR opts for such inclusion of
      either of the foregoing entities by giving written notice to
    Supplier.

	 	 
	1.2 	
      “Applicable Laws” means all applicable common law,
      statutes, ordinances, rules, regulations, codes, requirements, laws or
      orders of any Governmental Authority, including Regulatory Laws.

	 	 
	1.3 	
      “Assay(s)” means those tests for cardiac markers
      set forth on Exhibit A.

	 	 
	1.4 	
      “Business Day” – any day other than (a) Saturday
      or Sunday or (b) a day on which banks in the United States, Germany,
      Switzerland or Canada are permitted or required to be
  closed.

	1.5 	
      “CLIA” means the Clinical Laboratory Improvement
      Amendments pursuant to which the Centers for Medicare & Medicaid
      Services regulate U.S. laboratories.

	SUPPLY AGREEMENT 	PAGE 1
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

ROCHE DIAGNOSTICS, SALES AND DISTRIBUTION AGREEMENT V.12 06_19_2008 

	
1.6 		
“Competitive Product” means any assay for the detection of cardiovascular disease, including, but not limited to, NT-proBNP Assay, Troponin I Assay, CK-MB Assay, or Myoglobin Assay.

	
	 	 	 
	
1.7 		
“Confidential Information” – any and all information of a confidential and proprietary nature that may be hereafter disclosed in any form, whether in writing, orally, electronically, or otherwise made
available by observation, inspection or otherwise by or on the behalf of RDO, its Affiliates or any Ordering Entity on the one hand, and Supplier on the other hand (each a “Disclosing Party”) to the other Party or any Ordering Entity (each
a “Receiving Party”), including without limitation:

	
	 	 	 
		
(a) 		
all information that is a trade secret under applicable trade secret law or other legal requirement and any other information that the Disclosing Party treats as confidential or proprietary and that should reasonably be understood
to be confidential and proprietary to the Disclosing Party;

	
	 	 	 
		
(b) 		
all information concerning product specifications, data, know-how, formulae, compositions, processes, designs, sketches, photographs, graphs, drawings, samples, inventions and ideas, past, current and planned research and
development, current and planned manufacturing or distribution methods and processes, customer lists, current and anticipated customer requirements, price lists, market studies, business plans, computer hardware, computer software, database
technologies, systems, structures and architectures;

	
	 	 	 
		
(c) 		
all information concerning the business and affairs of the Disclosing Party, its Affiliates or any third party in the possession of the Disclosing Party under an obligation of confidentiality (which includes historical and current
financial statements, financial projections and budgets, historical, current and projected sales, capital spending budgets and plans, business plans, strategic plans, marketing and advertising plans, publications, client and customer lists and
files, contracts, the names and backgrounds of key personnel and personnel training techniques and materials, however documented), and all information obtained from review of the Disclosing Party’s documents or property or discussions with the
Disclosing Party regardless of the form of the communication, including any information regarding third party business partners of the Disclosing Party possessed by such Disclosing Party under an obligation of confidentiality; and

	
	 	 	 
		
(d) 		
all notes, analyses, compilations, studies, summaries and other material prepared by the Receiving Party to the extent containing or based, in whole or in part, upon any information included in the foregoing.

	
	 	 	 
			
For purposes of this Agreement, “RDR Confidential Information” shall mean Confidential Information that is disclosed by RDR (or its Affiliates or any Ordering Entity) to Supplier, “RDO Confidential
Information” shall mean Confidential Information that is disclosed by RDO (or its Affiliates or any Ordering Entity) to Supplier, and “Supplier Confidential Information” shall mean Confidential Information that is disclosed
by Supplier to RDR or RDO (or their Affiliates or any Ordering Entity).

	
	 	 	 
	
1.8 		
“EMT” means the Executive Management Team.

	
	 	 	 
	
1.9 		
“FDA” - the United States Food and Drug Administration or any successor agency having the administrative authority to regulate the sale or marketing of medical devices in the United States.

	
	 	 	 
	
1.10 		
“GMPs” - current good manufacturing practices as specified in the FDA’s Quality System Regulation at 21 CFR Part 820, or similar Regulatory Laws of any applicable Regulatory Authority, as such Regulatory Laws
are in effect at the time of design, manufacturing, and supply, and as such regulations and similar Regulatory Laws are interpreted at that time by the relevant Regulatory Authority.

	

	SUPPLY AGREEMENT 	PAGE 2
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

	
1.11 		
“Governmental Authority” - all agencies, commissions, officials, courts and other governmental and regulatory authorities and instrumentalities of the United States and any other countries in which the Products
are manufactured, marketed, sold, tested, investigated or regulated, and all states or other political subdivisions thereof and supranational bodies applicable thereto.

	
	 	 
	
1.12 		
“JPSC” means Joint Program Steering Committee.

	
	 	 
	
1.13 		
“Lifetime Buy” – a purchase option available to RDR or RDO under certain circumstances contemplated by this Agreement, covering whatever quantity of Product(s) RDR or RDO elects to purchase, in its sole
discretion, up to the equivalent of [***] of Product(s) from Supplier under this Agreement, but only for the purposes of Sections 8.3 and 8.4. The terms and conditions of this Agreement shall be applicable to all Product(s) purchased under such
option.

	
	 	 
	
1.14 		
“Manufacturing Processes” – the methods, processes, materials (including, without limitation, raw materials and manufacturing materials), controls and facilities (including, without limitation, the equipment
and equipment location) used in the manufacturing operations to produce the Product(s), including without limitation, the design, manufacture, packaging, labeling, handling, storage, distribution, installation and servicing of the Product(s), as
applicable, given the nature of the Product.

	
	 	 
	
1.15 		
“Ordering Entity” – RDR, RDO, an Affiliate of RDR or RDO or any other entity designated by RDR or RDO to purchase Product(s) pursuant to the terms of this Agreement. The initial Ordering Entities other than
RDR and RDO under this Agreement are identified on Exhibit B.

	
	 	 
	
1.16 		
“POL” - laboratories owned or operated for the purpose of testing specimens from patients seen by the physicians who own, operate, or are affiliated with that practice.

	
	 	 
	
1.17 		
“Product(s)” – the cardiac marker products identified on Exhibit A attached hereto and manufactured, packaged, and labeled for and provided to RDR and/or RDO in accordance with the Specifications,
Quality Requirements and other requirements of this Agreement.

	
	 	 
	
1.18 		
“Purchase Order” – the written orders for the manufacturing and delivery of the Product(s) submitted by Purchaser to Supplier in form and content complying with the terms and conditions of this Agreement.

	
	 	 
	
1.19 		
“Purchaser” – RDR and/or RDO and/or an Ordering Entity, as applicable.

	
	 	 
	
1.20 		
“Quality Requirements”- the quality standards, procedures, practices and requirements set forth on Exhibit E.

	
	 	 
	
1.21 		
“Recall” – any correction or removal of, field action, or customer notification or communication with respect to, a device manufactured, marketed, sold, or distributed by RDR, RDO or their Affiliates that is
initiated (a) at the direction of the FDA or other Regulatory Authority, or (b) voluntarily by RDR, RDO, its Affiliates or Supplier to reduce a risk to health posed by such device or to remedy a violation of the Federal Food, Drug and Cosmetic Act
(the “Act”) or other Regulatory Law caused by the device which may present a risk to health.

	
	 	 
	
1.22 		
“Regulatory Authority” - with respect to any country or jurisdiction, any Governmental Authority involved in granting approval of or regulating of the investigation, manufacture, distribution, marketing, sale,
pricing or reimbursement of the Products in that country or jurisdiction, including the FDA in the United States.

	
	 	 
	
1.23 		
“Regulatory Laws” - all Applicable Laws governing (i) marketing approval or clearance, import, export, testing, investigation, design, manufacture, packaging, labeling, handling, storage, distribution,
installation, servicing, marketing, or sale, (ii) recordkeeping and reporting obligations,

	

	SUPPLY AGREEMENT 	PAGE 3
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

		
      (iii) Recalls, or (iv) similar regulatory matters, with
      respect to the Products, including without limitation, GMPs.

	 	 
	1.24 	
      “Specifications” – the complete and accurate
      description of the shape, appearance, features, functionality and other
      characteristics of a Product and the Manufacturing Processes, standard
      procedures, formulae, specifications, tests (and testing protocols),
      labeling, packaging and other standards pertaining to such Products all as
      described in Exhibit C attached hereto, all or any of which may be
      modified from time-to-time in accordance with Exhibit E hereof. To
      clarify, Specifications may only be modified in accordance with Exhibit
      E. Any modification of the Specification pursuant to Exhibit E
      shall be incorporated into this Agreement.

	 	 
	1.25 	
      “Territory” means any and all jurisdictions
      world-wide, but excluding Japan with respect to the NT- proBNP Assay
      listed in Exhibit A. If during the term of this Agreement, Supplier
      acquires the right to extend the Territory to include such NT-proBNP Assay
      in Japan, it shall promptly notify Purchaser and at such time the
      Territory shall be deemed to include the NT-proBNP Assay in Japan without
      further action by the Parties. Supplier shall use commercially reasonable
      efforts to obtain for Purchaser in Japan non-exclusive rights to the
      NT-proBNP assay listed in Exhibit A.

	 	 
	2. 	
      SUPPLY OF PRODUCTS,
      PRODUCT PRICE AND PAYMENT
      TERMS

	 	 
	2.1 	
      Supply. Supplier agrees to manufacture and supply
      the Product(s) to Purchaser in accordance with the Specifications as set
      forth in Exhibit C, the Quality Requirements set forth in
      Exhibit E and the other requirements of this Agreement, and
      Purchaser agrees to purchase the Product(s) from Supplier, subject to the
      terms and conditions set forth herein.

	 	 
	
      2.2 
	
      Price. The prices for the Products ordered by
      Purchaser hereunder shall be as set forth in Exhibit D (the
      “Prices”). The Prices detailed in Exhibit D shall represent
      the maximum prices for the Products ordered by Purchaser during the
      Initial Term of this Agreement; provided, however, in the event of
      material cost savings to Supplier due to economies of scale resulting from
      increased orders of the Ramp 200 Test Module, the Ramp 200 Control Module,
      the Printer, the Bar Code Scanner, and controls, whether pursuant to this
      Agreement or other agreements, shall be automatically passed on to
      Purchaser and the Prices in Exhibit D revised accordingly. In the event of
      material cost increases to Supplier due to increases in the cost of
      materials, labor, regulatory requirements or subcontractor costs, a Party
      may submit to the JPSC for consideration in good faith whether the Prices
      should be adjusted, and if no agreement is reached, the discussion will be
      escalated to the EMT. Subsequent to the Initial Term, the Prices shall be
      established pursuant to good faith negotiations between the
  Parties.

	 	 
	2.3 	
      Payment Terms. Unless disputed by either Party,
      Purchaser shall pay Supplier for each shipment of Product(s) within [***]
      calendar days after the later of (a) Purchaser’s receipt of a complete
      invoice and (b) the shipment of Product(s) (such date, the “Receipt
      Date”). In consideration of Purchaser’s expedited payment to Supplier,
      Purchaser shall be entitled to a [***] cash discount on all payments made
      to Supplier within [***] calendar days of the Receipt Date.

	 	 
	2.4 	
      Taxes. To the extent that Products supplied
      hereunder are subject to any sales, use, value added or any other taxes,
      payment of said taxes, if any, is Purchaser’s responsibility and said
      taxes are included in the Prices. Supplier shall be liable for any and all
      taxes on any and all income resulting from payments by Purchaser under
      this Agreement.

	 	 
	2.5 	
      Tooling. To the extent that RDR, RDO or one of
      their Affiliates reimburses Supplier for tooling for the production of
      Products, Supplier agrees that it shall comply with RDO’s tooling
      requirements attached hereto as Exhibit G.

	 	 
	
      2.6 
	
      Closed System Requirement. Supplier agrees that
      instruments and/or systems identified on Exhibit A
      (including any subsequent versions or improvements) will only be able to
      read the cardiac tests

	SUPPLY AGREEMENT 	PAGE 4
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

		
      identified on Exhibit A (including subsequent versions,
      improvements and additional cardiac tests added to Exhibit A). In
      addition, Supplier agrees that the tests identified on Exhibit A
      and manufactured after the Effective Date (including any subsequent
      versions, improvements and additional cardiac tests added to Exhibit
      A) will not be capable of being read by any instrument and/or system
      manufactured by Supplier, other than the instruments/systems identified on
      Exhibit A.

	 	 
	2.7 	
      Exclusivity. Supplier grants RDR and RDO the
      exclusive rights in the Territory, excluding [***] to market, sell and/or
      distribute the Products. Supplier shall not market, sell or distribute the
      Products itself, or through any other party and shall not develop, market
      or sell any Competitive Products in the Territory, [***] For the avoidance
      of doubt, the foregoing provisions of this Section 2.7 shall be
      subject to implementation of a plan to be established by the JPSC to
      address the intended phase- out of distributors which at the Effective
      Date are distributing Products. If Purchaser’s total purchases (by RDR,
      RDO and any Ordering Entity) fail to meet the Worldwide Minimum Purchase
      Quantities of a Product(s), as specified in Exhibit D, the Parties
      agree that Supplier will be released from its exclusivity obligations
      under this Section 2.7.

	 	 
	2.8 	
      CLIA Waiver. Promptly, but no longer than
      forty-five (45) days, following the Effective Date, Supplier shall propose
      to the JPSC for comment and approval a plan and budget pertaining to a
      CLIA waiver program. The budget shall cover direct and indirect costs of
      Supplier in performing the plan. While the budget to be agreed upon by the
      JPSC shall govern the amounts to be spent, it is currently anticipated
      that such budget will be approximately [***] per assay. The Parties agree
      to work jointly on the CLIA waiver development programs for the
      Product(s), but for the avoidance of doubt, such program shall be
      undertaken by Supplier. RDR will bear all of Supplier’s budgeted costs.
      Supplier shall not incur costs under such development programs without the
      approval of the JPSC. [*** Further, the Parties will explore obtaining
      equivalent waiver status in markets outside the U.S. If RDR wishes to
      obtain such status, RDR will also bear the expenses of any such programs
      and, if desired by RDR, Supplier will use its reasonable commercial
      efforts to complete such programs. The Parties recognize that in countries
      outside the U.S. and Canada, it may be beneficial for RDR to undertake
      such programs and Supplier agrees to cooperate fully with RDR with respect
      to these programs and to provide information and analysis and conduct such
      follow-up activities as reasonably requested by RDR. The Parties
      acknowledge that there is no assurance that any waiver will be obtained,
      and Supplier shall not be obligated to engage in non-budgeted
      activities.

	 	 
	2.9 	
      Production Requirements. Promptly, [***] following
      the Effective Date, Supplier shall propose to the JPSC for comment and
      approval a plan to achieve the following two (2) production requirements:
      [***]. Supplier is responsible for the plan and will bear all associated
      costs

	 	 
	2.10 	
      Additional Products.

(a)          
New Versions or Improvements/Enhancements. Minor improvements (including
minor software updates) and/or enhancements to the Products by Supplier shall
automatically be included as Products in Exhibit A at the prices set
forth in Exhibit D. Before the development or implementation of a new
version of a Product, that incorporates more than a minor improvement or
enhancement to the Product, the Parties shall discuss in good faith at the EMT
the development plan and an appropriate price therefore. 

(b)          
New Products Developed Independently by Supplier. During the term of this
Agreement, Supplier agrees to notify RDR and RDO in writing as soon as
commercially reasonable, of any new product developed by Supplier in the field
of assays for the detection of cardiovascular disease, including, but not
limited to, new test parameters. The Purchasers through their representatives on
the EMT shall have the first right of refusal to add such new products to this
Agreement and the Parties agree to negotiate in good faith the pricing and other
terms for these products and shall execute amended Exhibits A, C and D to
include the new products, specifications, terms and agreed-upon pricing. If the
Parties are unable to reach definitive agreement on such product, 

	SUPPLY AGREEMENT 	PAGE 5
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

specifications, terms and pricing
within sixty (60) days of notice RDR and RDO, shall have no further rights to
such product under this Section 2.10(b) and Supplier shall be free to deal in
respect of such product as it sees fit. 

(c)          
  New Products Developed by Supplier at RDR/RDO’s Request. In the
  event RDR and RDO desire improvements to the Products or new cardiac products,
  RDR or RDO shall notify the EMT. If Supplier, RDR and RDO agree to proceed,
  the Parties shall negotiate in good faith a separate development agreement covering
  the desired improvements/new products.

(d)          
Connectivity Solutions. In the event RDR and RDO desire a connectivity
solution to enable the Products to connect to a hospital or POL information
system, RDR or RDO shall notify the EMT. Supplier agrees to cooperate fully with
RDR, RDO and the third party software supplier selected by RDR and RDO, with
respect to the development of this solution and to provide information and
analysis and conduct such follow-up activities as reasonably requested by RDR,
RDO and the third party supplier. The JPSC shall in good faith establish a plan
and budget for the development of a connectivity solution. The Parties agree to
cooperate in good faith in the implementation of such plan. 

	3. 	
      PURCHASE ORDERS,
      FORECASTS, WARRANTY OF SUPPLY,
      AND FIRM
    LEAD-TIME

	 	 
	3.1 	
      Purchase Orders. During the Term of this
      Agreement, Purchaser may issue Purchase Orders containing instructions for
      performance under this Agreement, specifying the Specification number
      (i.e., change number) and quantities (and type, if applicable) of the
      Products desired. Supplier shall notify Purchaser promptly if the
      Specification number (change number) on the Purchase Order does not match
      the Specification number (change number) of the Product that Supplier has
      agreed to produce. Such Purchase Orders shall constitute the only
      authorization for Supplier to provide Products to Purchaser, and Purchaser
      shall accept only that performance that has been pre-authorized as
      evidenced by a Purchase Order. Supplier shall confirm its receipt and
      acceptance of each Purchase Order. Supplier shall not be entitled to
      reject an order which complies as a Purchase Order under this Agreement.
      For clarification, nothing in this Agreement requires Purchaser to submit
      any Purchase Orders or obligates Purchaser to purchase any quantity of
      Products other than as reflected in those portions of the Rolling Monthly
      Forecasts which are binding. Purchaser may make changes to the identity of
      Products, quantities, and/or delivery dates or delivery locations
      specified in issued Purchase Orders without penalty, additional cost, or
      the consent of the Supplier, provided that such changes are made
      outside of the Firm Lead-Time (as established in Section 3.4) and
      are otherwise in compliance with this Agreement. Supplier shall reference
      the Purchase Order number on all packing slips (and/or bills of lading)
      and invoices (including commercial invoices) for Product(s) delivered
      hereunder. Any term or condition of any Purchase Order, packing slip, bill
      of lading, or invoice that is different from or contrary to the terms and
      conditions of this Agreement shall be void and of no force and
    effect.

	 	 
	3.2 	
      Forecasts. In order to facilitate Supplier’s
      forward planning process for Products, and to assist Supplier in making
      certain decisions relative to inventory of long lead-time raw materials,
      by the first of each month during the Term of this Agreement, Purchaser
      shall provide Supplier with a written, rolling twelve-month forecast of
      its monthly estimated requirements for the Products (each a “Rolling
      Monthly Forecast”), of which only the first three (3) months will be
      binding. While the non- binding portion of each Rolling Monthly Forecast
      shall constitute the good faith beliefs of RDO and RDR, respectively, RDO
      and RDR may make such changes to the non-binding portion of each Rolling
      Monthly Forecast as it sees fit; provided, however, (i) the quantities
      forecasted for the sixth month of any Rolling Monthly Forecast shall not
      be increased by more than 25% prior to entering the Firm Order Period and
      (ii) the quantities forecasted for the ninth month of any Rolling Monthly
      Forecast shall not be increased by more than 50% prior to entering the
      Firm Order Period. In the event that RDO or RDR submit purchase orders in
      excess of those permitted pursuant to the forecasting mechanism set forth
      in this Section 3.2, Supplier shall not be obligated to accept that
      portion of the quantities set forth in such purchase orders that
      represents the overage (the “Excess Order Quantity”) .
      Nevertheless, to the extent Supplier accepts a purchase order reflecting
      an

	SUPPLY AGREEMENT 	PAGE 6
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

		
Excess Order Quantity, it shall use commercially reasonable efforts to fulfill the Excess Order Quantity.

	
	 	 
	
3.3 		
Warranty of Supply. Supplier hereby represents and warrants to RDR and RDO that it will use commercially reasonable efforts to have the capacity to manufacture and supply the Product(s) required by Purchaser pursuant to the
forecasting mechanism of Section 3.2 during the Term of the Agreement. Furthermore, Supplier hereby represents and warrants to RDR and RDO that (a) it will have the capacity to manufacture and supply the Product(s) (a) for any three (3) month
period during the Term in quantities equal to [***] of the quantity forecast for the three (3) month period prior thereto and [***] of the quantity forecast for the three (3) month period commencing six (6) months prior thereto, and (b) it will use
commercially reasonable efforts to have the capacity during the period specified in Section 8.3 for any Lifetime Buy. Purchaser may submit Purchase Orders for any quantity of Product(s), although Supplier shall not be obligated to accept any
Purchase Order that exceeds the quantity or other requirements of this Agreement. In the event Supplier’s manufacturing capacity is insufficient to meet the quantity of Products requested by Purchaser in a Purchase Order or the quantity set
forth in a Rolling Monthly Forecast, Supplier shall notify Purchaser of such circumstances as soon as possible, but in no event later than ten (10) Business Days from the date of receipt of such Purchase Order or Rolling Monthly Forecast, and RDR
and/or RDO shall be entitled to reduce the Worldwide Minimum Purchase Quantities specified in Exhibit D. Such reduction in the annual Minimum Purchase Quantity shall apply only to the year of such capacity shortage, and shall be a fraction
equal to the ratio of (i) the aggregate, cumulative Prices of Products covered by Purchase Orders or Rolling Monthly Forecasts as to which Supplier has notified Purchaser that it does not have capacity, over (ii) the aggregate, cumulative Prices of
all Products covered by Purchase Orders submitted by Purchaser to Supplier during such year. Such calculation shall not include Excess Order Quantities. If the capacity shortfall occurs during the first three years under Exhibit D, the annual
Minimum Purchase Quantity shall be deemed to be [***] units, but only for purposes of calculating the reduction. Supplier agrees that in the event Supplier’s manufacturing capacity is insufficient to meet the quantity of Products requested by
Purchaser in a Purchase Order, and not in excess of those permitted pursuant to the forecasting mechanism set forth in Section 3.2, or the quantity set forth in a Rolling Monthly Forecast, Supplier will equitably allocate its manufacturing capacity
based upon the quantities of products set forth in firm purchase orders received from its customers, until the shortfall issue is corrected.

	
	 	 
	
3.4 		
Firm Lead-Time. Firm lead-time for Products ordered hereunder shall be ninety (90) days (the “Firm Lead-Time”). Purchaser may not make changes to any Purchase Orders issued hereunder within the Firm
Lead-Time without the consent of Supplier.

	
	 	 
	
3.5 		
No Volume Guarantee. Supplier acknowledges that Purchaser is not guaranteeing that any volume of Assays will be ordered by Purchaser during any period during the Term of this Agreement.

	
	 	 
	
4. 		
DELIVERY

	
	 	 
	
4.1 		
Delivery. Supplier shall deliver the Product(s) Ex Works (ICC Incoterms 2000) Supplier facility in accordance with the Specifications, Quality Requirements, Purchaser’s shipping policies and Purchaser’s Purchase
Order on the dates specified in the delivery schedules attached to such Purchase Order. Purchaser shall select the designated freight carrier(s).

	
	 	 
	
4.2 		
On-Time Delivery. Supplier shall manufacture and deliver [***] of the Product covered by Purchase Orders in full compliance with the Specifications, the Quality Requirements and the other terms and conditions of this
Agreement; provided, however, in the event that Supplier delivers at least [***] of the Product ordered hereunder with respect to a given Purchase Order, it shall not be deemed to be in breach of this Agreement if it delivers any shortfall within
sixty (60) days of the initial delivery date. For purposes of this Agreement, “on-time” delivery shall be deemed to be five (5) calendar days before to zero (0) calendar days after the date of delivery to the facility specified in the
applicable Purchase Order.

	

	SUPPLY AGREEMENT 	PAGE 7
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

	
4.3 		
Remedies. In the event Supplier breaches Section 4.2, the sole remedies of RDO and RDR shall be replacement of defective Product or refund, at the option of Supplier together with the direct costs of (a)
Purchaser’s administration of the backorder situation caused by such breach and (b) Purchaser’s customers reimbursed by Purchaser to cover the incremental increased cost of cover that Purchaser is obligated to provide its customers as a
result of Supplier’s breach of Section 4.2. In the event of chronic breaches of Section 4.2, as set forth in Section 8.2 (b)(ii) or Section 8.2(b)(iii), Purchaser shall have the remedies set forth therein. Purchaser shall
have the obligation to maintain such inventories of Products as a reasonably prudent similarly situated company would maintain and to mitigate the amounts due from Supplier under this Section 4.2 in respect of its customers’ costs.
	
	 	 	 
	
5. 		
REPRESENTATIONS, WARRANTIES, AND COVENANTS
	
	 	 	 
	
5.1 		
Representations, Warranties, and Covenants of Supplier. In addition to all of the representations, warranties, and covenants of Supplier set forth herein, Supplier hereby represents, warrants, and covenants to Purchaser as
follows:
	
	 	 	 
		
(a) 		
Corporate Power and Authority. Supplier has all necessary power and authority to enter into and be bound by the terms and conditions of this Agreement, and that the execution, delivery, and performance of this Agreement by
Supplier have been duly authorized by all necessary corporate or company action on the part of Supplier. All persons executing this Agreement on Supplier’s behalf have been duly authorized to do so by all necessary corporate or company
action.
	
	 	 	 
		
(b) 		
Enforceability; No Conflict. This Agreement, when executed and delivered by Supplier in accordance with the provisions hereof, will be its legal, valid and binding obligation, enforceable against it in accordance with the
terms of this Agreement. This Agreement and Supplier’s performance hereunder does not and shall not violate any agreements that Supplier has with any third party.
	
	 	 	 
		
(c) 		
Product Specifications and Quality Requirements. All Products supplied by Supplier under this Agreement shall be manufactured and delivered in full compliance with the Quality Requirements, the Specifications, and the
Applicable Laws of the United States and of the place of manufacture, as well as Applicable Laws in those jurisdictions where Purchaser has given reasonable notice to Supplier of an intention to sell sufficient to enable Supplier to ascertain the
requirements of such Applicable Laws and to then comply therewith, and all other terms and conditions of this Agreement. Purchaser agrees to give Supplier reasonable notice of jurisdictions in which it plans to cease sales of the Products.
	
	 	 	 
		
(d) 		
Process Capability. Supplier will demonstrate, through reasonable documentation of validation, a process capability (CpK) of 1.33 or greater on any Purchaser-identified critical characteristics, dimensions or attributes, as
applicable and set forth in the Exhibits to this Agreement.
	
	 	 	 
		(e) 	
Intellectual Property. Supplier warrants that it has engaged in a thoughtful patent infringement clearance process, including conducting searches for third party patents and published applications relevant to products
it supplies under this Agreement. Based upon the infringement clearance process and thoughtful, well reasoned factual and legal analysis of the results of the patent searches, Supplier has cleared the products supplied under this Agreement for sale
from a patent infringement clearance perspective. Further, as of the Effective Date, no third party has raised any claim of patent infringement regarding products supplied under this Agreement.
	
	 	 	 
	
5.2 		
Representations, Warranties, and Covenants of RDR and RDO. In addition to all of the representations, warranties, and covenants of RDR and RDO set forth herein, RDR and RDO hereby represents, warrants, and covenants to
Supplier as follows:
	

	SUPPLY AGREEMENT 	PAGE 8
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

	 	(a) 	
      Corporate Power and Authority. RDR and RDO have
      all necessary power and authority to enter into and be bound by the terms
      and conditions of this Agreement, and that the execution, delivery, and
      performance of this Agreement by RDR and RDO have been duly authorized by
      all necessary corporate or company action on the part of RDR and RDO. All
      persons executing this Agreement on RDR and RDO’s behalf have been duly
      authorized to do so by all necessary corporate or company
action.

	 	 	 
	 	(b) 	
      Enforceability; No Conflict. This Agreement, when
      executed and delivered by RDR and RDO in accordance with the provisions
      hereof, will be its legal, valid and binding obligation, enforceable
      against it in accordance with the terms of this Agreement. This Agreement
      and RDR and RDO’s performance hereunder does not and shall not violate any
      agreements that RDR or RDO have with any third party.

	 	 	 
	 	(c) 	
      Compliance with Applicable Laws. RDR and RDO will
      store, handle, distribute, offer to sell, promote, advertise and sell the
      Products in full compliance with all Applicable
Laws.

	6. 	
      RECORDS AND
  AUDITS

	6.1 	
      Records. In compliance with Regulatory Laws and
      its own internal quality systems, Supplier shall maintain reproducible
      records of all information, data and documentation and retention samples
      relating to the Manufacturing Processes, Products, Quality Requirements,
      Specifications and its performance under this Agreement (the
      “Records”) until five (5) years after the later of the expiration
      or early termination of this Agreement and the period required by
      Applicable Laws. If Supplier is required to be registered with the FDA,
      Supplier shall comply with the requirements set forth in 21 C.F.R. Part 11
      regarding electronic records and signatures.

	 	 
	6.2 	
      Audit of Manufacturing Processes, Products and
      Records. Within ten (10) Business Days after a request is made by RDR
      or RDO, Supplier’s Manufacturing Processes, Products and Records shall be
      open to audit, inspection, examination and evaluation during normal
      working hours, but not more frequently than twice each year (other than by
      way of a follow-up audit to measure remedial measures to be taken
      following a finding of material deficiency during a regular audit), with
      the understanding that any audit(s) may be divided up into separate audits
      of specific business function, by RDR, RDO or their authorized
      representatives to the extent reasonably necessary to evaluate Supplier’s
      compliance with Applicable Laws and/or other requirements in connection
      with its performance under this Agreement. Without limiting the generality
      of the foregoing, Supplier shall permit RDR, RDO or their authorized
      representative, to enter the manufacturing, packaging, and quality control
      facilities to inspect and audit all the Manufacturing Processes (including
      without limitation equipment, facilities, operations and procedures),
      Products (including without limitation by sampling of such Products) and
      Records (including without limitation Records relating to quality
      assurance and regulatory compliance as they pertain to the Product(s) or
      to the system support and processes used to manufacture, process and/or
      package the Product(s)). For the purpose of such audits, inspections,
      examinations, and evaluations, RDR, RDO or their authorized
      representatives shall have access to such Manufacturing Processes,
      Products and Records beginning on the Effective Date and continuing until
      five (5) years after the later of (i) the termination or expiration of the
      Agreement or (ii) the satisfaction of Supplier’s obligations under this
      Agreement. In addition, Supplier shall provide adequate and appropriate
      workspace for RDO or its authorized representatives, which shall be
      reasonable in number, to conduct such audits, inspections, examinations
      and evaluations. Access to areas of Supplier’s facilities shall be subject
      to considerations of confidentiality pertaining to Supplier and its
      customers. Auditing personnel shall be subject to the standard facility
      procedures of Supplier and Purchaser shall be responsible for the conduct
      of its representatives while on the premises of Supplier.

	 	 
	6.3 	
      Ownership and Maintenance of Records. Supplier
      shall notify RDR and RDO in writing at the expiration of the time period
      specified for access to the Records set forth in Section 6.2 or at
      any time thereafter, if it does not intend to maintain the Records. RDR
      and RDO shall have sixty (60)

	SUPPLY AGREEMENT 	PAGE 9
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

		
      calendar days thereafter to respond to such notice. If
      RDR or RDO determines that it requires such Records, RDR or RDO shall
      notify Supplier and such Records pertaining to the Products shall be
      shipped to RDR or RDO, as specified, within a reasonable period of time,
      but in no event later than sixty (60) days after such notification from
      RDR or RDO. RDR and RDO agree to pay for reasonable retrieval and shipping
      costs associated with such Records.

	 	 	 	 
	7. 	
      PRODUCT RECALLS

	 	 	 	 
	7.1 	
      Recalls. If any Party, in good faith, determines
      that a Recall of one or more Products or its labeling may be warranted,
      such Party shall immediately notify the other Parties in writing and shall
      advise such other Parties of the reasons underlying its determination that
      a Recall may be warranted. The Parties shall consult with each other as to
      any action to be taken regarding such Recall. Notwithstanding the
      foregoing, RDR or RDO shall have the right to Recall one or more Products
      or its labeling at any time. Supplier agrees to reimburse RDR and RDO for
      the actual direct costs of a Recall, including but not limited to,
      freight, sorting, reworking or replacing Product, customer bulletins and
      direct administration of the Recall, but only with respect to and to the
      extent such Recall was a direct result of Supplier’s breach of this
      Agreement.

	 	 	 	 
	8. 	
      TERM AND
TERMINATION

	 	 	 	 
	8.1 	
      Initial Term. The “Initial Term” of this
      Agreement shall begin on the Effective Date and shall, unless earlier
      terminated pursuant to Section 8.2 below, continue in full force
      and effect for five (5) years thereafter. Subsequent to the Initial Term,
      this Agreement may be renewed in writing by the Parties. For purposes of
      this Agreement, the Initial Term and any renewal period thereafter shall
      be referred to herein as the “Term.” RDO and RDR shall notify
      Supplier, and Supplier shall notify RDO and RDR within [***] prior to the
      expiration of this Agreement of their intention whether or not to renew
      this Agreement.

	 	 	 	 
	8.2 	
      Termination.

	 	 	 	 
		(a) 	
      Termination for Cause.

	 	 	 	 
			(i) 	
      Any Party shall have the right to terminate this
      Agreement upon immediate written notice if the other Party is in material
      breach or default of any of its representations, warranties, covenants, or
      other obligations set forth in this Agreement and such Party fails to cure
      such breach or default within thirty (30) calendar days following receipt
      of written notice of such breach. In the event of such termination, the
      non-breaching Party shall be entitled to seek all available remedies at
      law or in equity in addition to exercising its right to terminate, unless
      such termination relates to Supplier’s failure to timely supply Product in
      accordance with this Agreement, in which case the remedies in Section 4.3
      are applicable.

	 	 	 	 
			(ii) 	
      Any Party may, at its sole option, immediately terminate
      this Agreement, or exercise the remedies set forth in Exhibit F,
      upon written notice, but without prior advance notice, to the other Party
      in the event that (A) the other Party is or becomes insolvent or is
      declared bankrupt by a court of competent jurisdiction; (B) a voluntary
      petition of bankruptcy is filed in any court of competent jurisdiction by
      such other Party; (C) an involuntary petition for bankruptcy is filed in
      any court of competent jurisdiction against such other Party; (D) a
      receiver or trustee is appointed for such other Party; or (E) this
      Agreement is assigned by such other Party for the benefit of creditors.
      For purposes of this Agreement, a Party shall be deemed to be
      “insolvent” when such Party has ceased to pay its debts in the
      ordinary course of business, cannot pay its debts as they become due, or
      is insolvent within the meaning of the federal bankruptcy law.

	 	 	 	 
		(b) 	
      Termination for Failure to Meet Certain
      Obligations.

	SUPPLY AGREEMENT 	PAGE 10
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

(i) Supplier shall have the right to
terminate this Agreement if Purchaser fails to meet the Worldwide Minimum
Purchase Quantities of the specified Product, as set forth in Exhibit D,
in years 4 or 5 of this Agreement. 

(ii) RDR or RDO shall have the right
to terminate this Agreement if Supplier fails to meet the quantity requirements
of any one Product, for any two (2) consecutive quarters (beginning in the first
year of the launch of the applicable Product launch with or without invocation
of the remedy set forth in Exhibit F. 

(iii) RDR or RDO shall have the right
to terminate this Agreement if Supplier fails to meet the Specifications set
forth in Exhibit C for a given Product for two (2) consecutive orders
and/or two (2) consecutive quarters with or without invocation of the remedy set
forth in Exhibit F. 

(iv) RDR or RDO shall have the right
to terminate this Agreement if Supplier fails to receive from FDA by the end of
Q3 2008 510(k) clearance on the NT-proBNP assay currently pending review.

	8.3 	
      Lifetime Buy. If either (a) Supplier provides
      notice of intent not to renew this Agreement after the Initial Term or any
      subsequent renewal period in accordance with Section 8.1, or (b)
      RDR or RDO terminates this Agreement pursuant to Section 8.2, then
      in addition to any other rights RDO or RDR may have hereunder, RDO or RDR
      shall be entitled to make a Lifetime Buy of Product(s). RDR or RDO shall
      have the option to submit a Purchase Order for prior to the expiration of
      this Agreement, and take delivery of, the Lifetime Buy of Products from
      Supplier for up to nine (9) months following the date of expiration or
      termination of this Agreement, as the case may be, but only for the
      purpose of covering outstanding tenders or purchase commitments and bona
      fide activities directed at the prompt, but orderly discontinuation of
      sales, marketing and distribution activities under this Agreement. RDR and
      RDO shall promptly discontinue all promotional and active sales and
      marketing activities related to Products. RDR’s or RDO’s Purchase Order
      for the Lifetime Buy shall constitute a binding obligation to purchase the
      quantities of Product referenced therein. Supplier shall update RDR or RDO
      periodically (but no less frequently than semi-weekly) regarding its
      status and progress on the Lifetime Buy build. RDR or RDO may, by written
      notice to Supplier, modify the specific Product(s) or quantities requested
      in the Lifetime Buy for any Product(s) or quantity for which manufacturing
      has not yet commenced by the time Supplier receives RDR’s or RDO’s notice.
      If RDR or RDO notifies Supplier of a reduction in the Lifetime Buy
      quantities for Products for which manufacture has not then commenced, RDR
      or RDO shall nonetheless be liable to Supplier for any Product-specific
      raw materials and/or components purchased by Supplier prior to such
      notification in furtherance of the Lifetime Buy build. Supplier shall
      provide to RDR or RDO or destroy such Product specific raw materials and
      components upon RDR’s or RDO’s request and RDR’s or RDO’s expense and in
      accordance with RDR’s or RDO’s written instructions.

	 	 
	8.4 	
      Post-Expiration/Termination Supply Obligations.
      Following expiration or termination of this Agreement, Supplier shall
      continue to sell to Purchaser, for those customers who have purchased a
      Hospital System or POL System in those jurisdictions where required by law
      or the sales terms by which RDR or RDO is obligated, reagents, parts,
      controls, disposables, accessories and service for [***] following the
      termination or expiration of this Agreement under the same terms and
      conditions set forth in this Agreement. The Parties agree that with
      respect to [***] such period will be [***] Neither RDR nor RDO shall
      institute any new promotion, advertisement or marketing of such items and
      shall use commercially reasonable efforts to cease existing promotion,
      advertisement and/or marketing of such items.

	 	 
	8.5 	
      Intellectual Property. If any Product or process
      used in the manufacture of Products by Supplier shall be held by a court
      of a competent jurisdiction in a final non-appealable judgment to infringe
      any patent, copyright or trademark or other intellectual property right,
      Supplier shall, or if Supplier, reasonable determines that there exists a
      material risk of infringement of a third party intellectual property
      right, whether or not a third party has made such a claim, Supplier may,
      at its expense use commercially reasonable efforts to (i) modify the
      Product or process in a manner reasonably

	SUPPLY AGREEMENT 	PAGE 11
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

acceptable to RDR and RDO to be
non-infringing (or acceptably reduce the material risk of infringement) or (ii)
obtain for RDR and RDO (without cost to RDR or RDO) a license to continue using
the Product or process or to reduce the material risk, as the case may be.
Supplier shall have thirty (30) calendar days following such a holding by a
court of competent jurisdiction to remedy said infringement. If Supplier is
unable to remedy said infringement to RDR’s and RDO’s satisfaction, or to
eliminate the material risk of infringement, this Agreement shall terminate with
respect to the affected Product without further cost or liability to either
Supplier, RDR or RDO; provided, however, Supplier shall (i) refund to RDR or
RDO, as the case may be, the price paid by them for any unsold inventory of
Products in their possession or under their control, and they shall promptly
return such Products to Supplier and (ii) reimburse to RDR and RDO any amounts
actually paid by them to their customers in satisfaction of claims made against
RDR or RDO by their customers due to the infringement of Products sold by RDR or
RDO to their customers, including, but not limited to, claims for breach of
contract due to failure to supply the Products. If one Party notifies the other
Party in writing, pursuant to Section 16.8, of a potential material risk of
infringement, and the Parties agree in writing that no license is required or to
be sought from a third party, the indemnity set forth in Section 9.1(a)(iii)
shall not apply after such agreement. 

8.6        Transfer of
Regulatory Filings. Upon expiration of this Agreement or termination by
Supplier pursuant to Section 8.1(a)(i), Section 8.1(a)(2) or Section 8.2(a)(1),
RDR and RDO shall promptly transfer to Supplier or its designee any regulatory
filings, approvals or authorizations pertaining to Products owned or controlled
by them, their Affiliates or any sublicensee.

	9. 	
      INDEMNIFICATION

	 	 	 
	9.1 	
      General Indemnification.

	 	 	 
		(a) 	
      Supplier’s Indemnification. Supplier shall
      protect, defend, indemnify, and hold harmless RDR, RDO, their Affiliates
      and each of their respective directors, officers, employees and agents and
      their respective permitted successors and assigns ( collectively, “RD
      Indemnitees”) from and against any and all claims, actions, and causes of
      action of third parties together with liabilities, losses, costs, expenses
      or damages resulting therefrom, including reasonable attorney’s fees
      (collectively, “Claims”) incurred by RD Indemnitees which directly or
      indirectly arise out of or relate to (i) the breach by Supplier of any of
      its representations, warranties, covenants, agreements, or obligations set
      forth in this Agreement, (ii) the negligence, recklessness, or willful
      misconduct of Supplier or its employees or agents in connection with its
      performance of its obligations set forth in this Agreement, or (iii)
      Claims (including treble damages for willful infringement) that any
      Product or any process utilized by Supplier to manufacture the Product
      infringes or misappropriates a copyright, patent or other intellectual
      property right of another person or entity.

	 	 	 
		(b) 	
      RDR/RDO’s Indemnification. RDR and/or RDO shall
      protect, defend, indemnify, and hold Supplier, its Affiliates and each of
      their respective directors, officers, employees, and agents, and their
      respective successors and permitted assigns (“Supplier Indemnitees”),
      harmless from and against any and all Claims incurred by Supplier which
      directly or indirectly arise out of or relate to (i) the breach by RDR or
      RDO of any of its representations, warranties, covenants, agreements, or
      obligations set forth in this Agreement, or (ii) the negligence,
      recklessness, or willful misconduct of RDR or RDO or its employees or
      agents in connection with its performance of its obligations set forth in
      this Agreement.

	 	 	 
		(c) 	
      Notice of Third-Party Claims. Any person or entity
      entitled to indemnification hereunder (each, an “Indemnified
      Person”) shall give to the party obligated to indemnify (the
      “Indemnifying Party”) (i) prompt written notice of any third-party
      claim(s) made against the Indemnified Person for which the Indemnified
      Person knows or reasonably should know that the Indemnifying Party may be
      liable hereunder, and (ii) the opportunity to defend, negotiate, and
      settle such third-party claim(s). The Indemnified Person shall provide the
      Indemnifying

	SUPPLY AGREEMENT 	PAGE 12
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

Party with all information in its
possession reasonably related to such third-party claim, all authority, and all
assistance necessary to enable the Indemnifying Party to carry on the defense of
such suit; provided, however, the Indemnified Person reserves the
right to retain its own counsel to defend itself in such suit. Notwithstanding
the foregoing, the Indemnified Person shall not be bound by any settlement made
without its prior written consent. 

	9.2 	
      LIMITATION OF LIABILITIES. NOTWITHSTANDING ANY
      OTHER PROVISION OF THIS AGREEMENT EXCEPT WITH RESPECT THIRD PARTY CLAIMS
      REQUIRED TO BE INDEMNIFIED PURSUANT TO SECTION 9.1 OR ANY CLAIM
      ARISING OUT OF A BREACH OF CONFIDENTIALITY, NEITHER PARTY SHALL BE LIABLE
      FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL, INDIRECT OR PUNITIVE DAMAGES
      WHETHER ARISING OUT OF SAID PARTY’S PERFORMANCE OR NON- PERFORMANCE OF
      THIS AGREEMENT, TORT (INCLUDING NEGLIGENCE), WARRANTY, OR OTHERWISE, EVEN
      IF THE EXCLUSIVE REMEDIES PROVIDED HEREIN FAIL OF THEIR ESSENTIAL PURPOSE
      AND EVEN IF A PARTY IS ADVISED OF THE POSSIBILITY OF SUCH
  DAMAGES.

	 	 	 
	10. 	
      RISK MANAGEMENT

	 	 	 
	10.1 	
      Disaster Recovery Plan. In order to demonstrate
      supply risk management to RDR and RDO, Supplier shall establish within one
      hundred eighty (180) days of the Effective Dated and maintain a disaster
      recovery plan (the “Disaster Recovery Plan”), which Disaster
      Recovery Plan would be implemented in the event of on an insolvency of
      Supplier as defined in this Agreement or a significant or catastrophic
      event affecting the supply of Products. As a provision of the Disaster
      Recovery Plan, Supplier shall grant to RDR and/or RDO an exclusive license
      to manufacture the Products or to sublicense a third-party approved by RDR
      and/or RDO to do the same to prevent an interruption in supply of Products
      (the “License”). The License shall be subject to the applicable terms and
      conditions of any license under which Supplier is sublicensing Purchaser
      and to the terms and conditions set forth in a license agreement
      negotiated in good faith on commercially reasonable terms by the Parties.
      Upon such occurrence, Supplier shall immediately provide to RDR and/or RDO
      written detailed information and technical assistance sufficient for RDR
      and/or RDO or a third party to manufacture the Products (collectively, the
      “Detailed Manufacturing Instructions”). The Detailed Manufacturing
      Instructions shall include, without limitation and as applicable, the
      following:

	 	 	 
		(a) 	
      an approved raw material vendor list;

		(b) 	
      raw material specifications;

		(c) 	
      machine-readable materials (e.g. software);

		(d) 	
      operating manuals;

		(e) 	
      quality control procedures; and

		(f) 	
      detailed manufacturing instructions.

	 	 	 
		
      In the event the License to make or have made becomes
      effective as provided in this Section 10.1, or Section 8.2,
      the Parties will cooperate in the transition of manufacturing, including
      the transfer of Detailed Manufacturing Instructions to enable RDR and RDO
      or another supplier to manufacture the Products.

	 	 	 
		
      Supplier shall enter into an escrow agreement (“Escrow
      Agreement”) with a mutually agreeable escrow agent (“Escrow Agent”), such
      Escrow Agreement providing for the deposit of one complete copy of the
      Detailed Manufacturing Instructions. Once every year following the deposit
      of the Detailed Manufacturing Instructions, RDR and RDO shall have the
      right, but not the obligation, to audit such Detailed Manufacturing
      Instructions through an independent third party auditor reasonably
      agreeable to the Parties, upon prior written notice to Supplier. Any such
      auditor shall treat the escrowed information as Confidential Information
      of Supplier. The scope of such audit shall be limited to ensuring that the
      obligations of this Section 10.1 have been met. Any such
    audit

	SUPPLY AGREEMENT 	PAGE 13
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

		
shall take place at the premises of the Escrow Agent. Supplier shall be entitled to have at least one employee of its choosing present at all times during any said audit. If the Detailed Manufacturing Instructions are found to be
inaccurate or incomplete, Supplier shall supplement the Detailed Manufacturing Instructions within twenty (20) Business Days to restore accuracy and completeness, and Supplier shall bear the cost and expense of supplementing the Detailed
Manufacturing Instructions. Otherwise, RDR and RDO shall bear the expense of any such audit. Supplier represents and warrants to RDR and RDO that the Detailed Manufacturing Instructions shall be kept current and complete, and shall be updated by or
on behalf of Supplier from time to time and in no event more than sixty (60) days after Supplier has made one or more material modifications to any of the Detailed Manufacturing Instructions. In the event of implementation of the Disaster Recovery
Plan pursuant to Section 10.1 or upon termination of this Agreement by RDR or RDO pursuant to Section 8(a) or 8(b)(ii) or (iii) (the “Triggering Event”), Supplier agrees that (i) RDR, RDO or a designated
affiliate is entitled to possession of the Detailed Manufacturing Instructions unless Supplier is disputing the basis for the occurrence of the Triggering Event, and (ii) RDR or RDO may give written notice to both Supplier and the Escrow Agent
requesting release of the Detailed Manufacturing Instructions. The Escrow Agent shall release and make the Detailed Manufacturing Instructions available to RDR, RDO or the designated Affiliate on the earlier of (1) the Escrow Agent’s receipt of
written notice form Supplier agreeing to and authorizing the release or (2) the date that is thirty (30) days after the Escrow Agent’s receipt of the written notice from RDR or RDO under clause (ii) above, unless, during such 30-day period, the
Escrow Agent receives written notice from Supplier disputing the basis for the occurrence of the Triggering Event. If Supplier disputes that a Triggering Event has rightfully occurred, Supplier may initiate the Dispute Resolution procedures set
forth in Section 16.9 and Supplier shall give written notice to the Escrow Agent, RDR and RDO within thirty (30) days after RDR or RDO gives written notice under clause (ii) above. If the Escrow Agent receives such notice of dispute form
Supplier within such 30-day period, the Escrow Agent shall release and make the Detailed Manufacturing Instructions available to RDR and RDO on the date that is sixty (60) days after the Escrow Agent’s receipt of the written notice from RDR or
RDO under clause (ii) above; provided, however, that the Escrow Agent shall not release or make the Detailed Manufacturing Instructions available to RDR or RDO if, prior to the expiration of such 60-day period, all the Parties give written notice to
the Escrow Agent that the Detailed Manufacturing Instructions should not be released. If Supplier disputes the release of the Detailed Manufacturing Instructions and it is finally determined that the Detailed Manufacturing Instructions should not
have released to RDR or RDO hereunder, RDR’s and RDO’s sole responsibility shall be to cease any further use of the Detailed Manufacturing Instructions (and cause any third party to cease further use of the Detailed Manufacturing
Instructions) and to return all copies of the Detailed Manufacturing Instructions to the Escrow Agent. All Detailed Manufacturing Instructions shall be the Confidential Information of Supplier and use and disclosure of the Detailed Manufacturing
Instructions shall be subject to the provisions of Section 11. The agreement with the Escrow Agent shall provide that all Detailed Manufacturing Instructions shall be returned to Supplier and the Escrow Agreement shall be terminated within
thirty (30) days after termination of this Agreement for any reason other than a Triggering Event, as certified in writing by all the Parties. Except as otherwise stated herein, all costs and expenses associated with the escrow of the Detailed
Manufacturing Instructions, including the costs of the Escrow Agent, shall be paid by Supplier.

	
	 	 
		
If Supplier can resume supplying Product(s) to Purchaser(s) in the quantities as Purchaser requires, and in full compliance with all of the terms and conditions of this Agreement, RDR and RDO (or a third party, as applicable)
shall discontinue manufacturing the Product(s) following production restart, where Supplier warrants and provides reasonable and satisfactory assurances that Supplier has the capacity and capability of satisfying Purchaser’s full demand for
Products. In such case the manufacturing license with RDR and/or RDO and any sublicense with a third party shall terminate and all Detailed Manufacturing Instructions shall be promptly returned to Supplier. RDR, RDO and any sublicensee shall treat
all Detailed Manufacturing Instructions as Confidential Information of Supplier.

	
	 	 
	
10.2 		
Insurance Requirements:

	

	SUPPLY AGREEMENT 	PAGE 14
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

	 	(a) 	
      Amounts and Types. During the Term of this
      Agreement and at all times that Supplier performs work hereunder, the
      Supplier shall maintain in full force and effect, at Supplier’s own
      expense, insurance coverage by insurers acceptable to RDR and RDO
      including:

	 	 	 	 
	 		(i) 	
      Worker’s Compensation. Worker’s compensation
      insurance shall be provided as required by law or regulation. Where
      permitted by law, such policies shall contain waivers of the insurer’s
      subrogation rights against RDR and RDO.

	 	 	 	 
	 		(ii) 	
      Employer’s Liability Insurance. Employer’s
      liability insurance shall be provided in amounts not less than $100,000
      per accident for bodily injury by accident, $500,000 policy limit by
      disease, and $100,000 per employee for bodily injury by disease.

	 	 	 	 
	 		(iii) 	
      Commercial General Liability. Commercial General
      Liability insurance with minimum combined single limits for bodily injury
      and property damage of $1,000,000. Commercial General Liability coverage
      shall also include contractual liability with a minimum of $2,000,000. RDR
      and RDO are to be named as additional insureds on Supplier’s General
      Liability policy, with respect to all operations performed by or on behalf
      of Supplier.

	 	 	 	 
	 	(b) 	
      Liability. Nothing contained in this Section
      10.2 shall be deemed in any way to either limit or increase the
      liability of either Party or their insurers under this Agreement.
      Notwithstanding anything to the contrary contained herein, Supplier’s and
      its insurers’ liability and obligations to RDR and RDO shall be limited to
      coverage for claims for which Supplier is liable pursuant to this
      Agreement.

	10.3 	
      Security of Manufacturing Facility Located Outside the
      United States. Supplier represents and warrants that Supplier’s
      facility (or facilities) located outside of the United States that are
      utilized to manufacture the Product(s) are in compliance during the Term
      of the Agreement with the security guidelines set forth in Exhibit
      H. A copy of Supplier’s security compliance plan that is compliant
      with Exhibit H will be provided to RDO within one hundred eighty
      (180) days following the Effective Date. In addition, Supplier shall
      provide to RDO, upon request, any additional information that is necessary
      for RDO’s continued compliance with the guidelines set forth in the
      Customs-Trade Partnership Against Terrorism (“C-TPAT”) program
      established by U.S. Customs and Border Protection.

	 	 	 
	11. 	
      CONFIDENTIALITY

	 	 	 
	11.1 	
      Confidential Information.

	 	 	 
		(a) 	
      Confidentiality and Restricted Use. Each Receiving
      Party of Confidential Information hereunder acknowledges the confidential
      and proprietary nature of the Confidential Information of the Disclosing
      Party and agrees that during the Term and for the greater of: (a) five (5)
      years following its disclosure to the Receiving Party; or (b) the period
      of time that the Disclosing Party is entitled to claim a proprietary
      interest and/or trade secret protection in the Confidential Information,
      such Confidential Information (i) shall be kept confidential by the
      Receiving Party; (ii) shall not be used for any reason or purpose other
      than in furtherance of such Party’s performance of its obligations
      hereunder; and (c) without limiting the foregoing, shall not be disclosed
      by the Receiving Party to any person or entity, except in each case as
      otherwise expressly permitted by the terms of this Agreement or with the
      prior written consent of an authorized representative of the Disclosing
      Party.

	 	 	 
		(b) 	
      Exceptions. The restrictions set forth in
      Section 11.1(a) do not apply to that part of the Confidential
      Information of a Disclosing Party that the Receiving Party demonstrates
      (i) was, is or becomes generally available to the public other than as a
      result of a breach of this

	SUPPLY AGREEMENT 	PAGE 15
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

	 		
      Article 11 by the Receiving Party; (ii) was or is
      developed by the Receiving Party independently of and without reference to
      any Confidential Information of the Disclosing Party; or (iii) was, is or
      becomes available to the Receiving Party on a non-confidential basis from
      a third party not bound by a confidentiality agreement or any legal,
      fiduciary, or other obligation restricting disclosure.

	 	 	 
	 	(c) 	
      Legal Proceedings. If the Receiving Party becomes
      compelled in any legal proceeding or is requested by a Governmental
      Authority having the requisite legal or regulatory jurisdiction and
      authority to make any disclosure that is prohibited or otherwise
      constrained by this Article 11, the Receiving Party shall provide
      the applicable Disclosing Party with prompt notice of such compulsion or
      request so that it may seek an appropriate protective order or other
      appropriate remedy or waive compliance with the provisions of this
      Article 11. In the absence of a protective order or other remedy,
      the Receiving Party may disclose that portion (and only that portion) of
      the Confidential Information of the Disclosing Party that, based upon
      advice of the Receiving Party’s counsel, the Receiving Party is legally
      compelled to disclose or that has been requested by such governmental
      body; provided, however, that the Receiving Party shall use
      reasonable efforts to obtain reliable assurance that confidential
      treatment will be accorded by any person, entity or governmental body to
      whom any Confidential Information is so disclosed. The provisions of this
      Section 11.1(c) do not apply to any legal proceedings between the
      Parties to this Agreement.

	 	 	 
	 	(d) 	Public Document
Requirements. The Parties hereby agree to work together to review and agree
upon a redacted version of this Agreement for filing by Supplier with securities
authorities where required to do so by virtue of its status as a public company.
The Parties shall commence such activity in advance of the Effective Date in
acknowledgement that such filings must take place within ten (10) days
thereafter. This Section 11.1(d) shall not be construed to prevent Supplier from
making any such filing in a timely manner. To the extent Supplier is required to
file or disclose any additional information related to this Agreement by virtue
of its status as a public company, Supplier shall (i) seek, to the extent
permitted by law, confidential treatment for the financial and other business
terms hereof and (ii) give RDR and RDC at least ten (10) Business Days prior
written notice, or if that is not possible, as much prior written notice as
possible using commercially reasonable procedures and methods, so as to permit
RDR and RDC to take all possible action to protect and/or safeguard its rights
in the Confidential Information. 

	11.2 	
      Return or Destruction of Confidential Information.
      Upon expiration or earlier termination of this Agreement, the Receiving
      Party shall promptly deliver to the Disclosing Party all Confidential
      Information of the Disclosing Party, together with all copies thereof, in
      the possession, custody or control of the Receiving Party or,
      alternatively, with the written consent of the Disclosing Party, destroy
      all such Confidential Information and certify such destruction in writing
      to the Disclosing Party; provided, however, that the
      Receiving Party may retain one copy of the Confidential Information that
      it has returned or destroyed to facilitate the resolution of any
      controversies after the Disclosing Party’s Confidential Information is
      returned.

	 	 
	12. 	
      INTELLECTUAL
  PROPERTY

	 	 
	12.1 	
      Supplier Intellectual Property. Supplier hereby
      grants to RDR and RDO a non-exclusive, world- wide, perpetual and royalty
      free license to all pre-existing intellectual property of Supplier that is
      a component of, or may benefit RDR’s or RDO’s use of, the Products
      purchased hereunder. Said license shall inure to the benefit of RDR, RDO,
      their Affiliates, and the Ordering Entities and each of their successors
      and assigns, and the customers of each of the foregoing. For the avoidance
      of doubt, the foregoing grant of rights shall not be construed to convey
      any rights separate form those embodied in Products purchased by RDR or
      RDO pursuant to this Agreement.

	SUPPLY AGREEMENT 	PAGE 16
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

	12.2 	
      RDR/RDO Intellectual Property. Unless specifically
      granted otherwise, nothing contained in this Agreement shall be construed
      to grant Supplier a license or in any way give ownership to any RDR or
      RDO-owned intellectual property, except that Supplier shall have access to
      such RDR or RDO- owned intellectual property as required for Supplier to
      fulfill, and solely for the purpose of fulfilling, its contractual
      obligations herein.

	 	 	 
	13. 	
      PACKAGING AND
    TRADEMARKS

	 	 	 
		
      Product packaging, labeling and inserts, Product
      literature, and other advertising and promotional materials will be
      co-branded with RAMP® and Roche. Supplier will package the Products
      in accordance with the Specifications and shall be responsible for the
      content of all labels other than camera ready art pertaining to Purchaser
      trademarks and trade dress. Purchaser shall be responsible for all Product
      literature, advertising and promotional materials pertaining to Products.
      The Parties agree that in the event country-specific labeling is required
      by Applicable Laws, Supplier will package the Product(s) with the
      country-specific labeling. The Parties contemplate that there will be
      two (2) different packaging versions; one version for the United States
      and Canada, and a separate version for the rest of the world.
      Purchaser shall pay all direct and indirect costs associated with
      country specific labeling, preparing and translating Product packaging,
      labeling, inserts in languages other than English, Spanish, French,
      Chinese and German.

	 	 	 
	14. 	
      MANAGEMENT OF COOPERATION.
      The Parties agree that the success of their cooperation depends on
      trustful, regular exchanges of information and a fast decision making
      process. For such purposes, the Parties agree to establish two (2) working
      committees, each comprised of equal numbers of representatives of Supplier
      and Purchaser, being responsible for specific tasks in the management of
      the cooperation between the Parties, namely:

	 	 	 
		(a) 	
      An Executive Management Team (“EMT”) shall meet at
      least once per year or upon the request of one Party within two (2) months
      of the request. The EMT shall have the primary responsibility to
      facilitate and oversee the cooperation between the Parties, and act as an
      alternative decision maker for any matter unsettled by the JPSC or any
      other unsettled matter resulting out of this cooperation. Each Party,
      within thirty (30) days of the Effective Date, shall designate its
      respective members participating in the EMT meetings.

	 	 	 
		(b) 	
      A Joint Program Steering Committee (“JPSC”) shall
      meet at least four (4) times per year with the primary responsibility to
      address: supply chain topics, customer support topics, quality
      assurance/regulatory affairs topics including which Party shall be
      responsible for pursuing and which Party shall own regulatory filings in
      jurisdictions where they do not exist on the Effective Date, and otherwise
      perform a program management function. Each Party, within thirty (30) days
      of the Effective Date, shall designate its respective members
      participating in the JPSC meetings.

	 	 	 
		
      Every meeting shall be documented in minutes prepared by
      RDO/RDR and signed by all Parties. Decisions shall be made by consensus
      with Supplier having one vote and RDO and RDR collectively having one
      vote.

	 	 	 
	15. 	
      COMPLIANCE WITH
      LAWS

	 	 	 
	15.1 	
      Compliance with Laws. Supplier shall comply with,
      and give all notices required by, all Applicable Laws of any Governmental
      Authority bearing on the performance of this Agreement as existing on the
      Effective Date and/or as enacted or amended during the Term hereof,
      including, without limitation, all requirements relating to human health,
      safety, and the environment. Supplier shall notify RDR and RDO if it
      becomes aware of any non-compliance by it of any Applicable Laws and shall
      take all appropriate action necessary to comply with such Applicable
      Laws.

	SUPPLY AGREEMENT 	PAGE 17
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

	15.2 	
      Federal Contractor Status. RDO is a federal
      contractor with obligations from various federal laws, rules, regulations,
      and executive orders, including without limitation, Equal Employment
      Opportunity and the utilization of small, disadvantaged, woman-owned,
      veteran and HUB zone businesses. Supplier agrees to comply with such
      obligations contained in the Applicable Laws. Supplier agrees to provide,
      at RDO’s request, any and all documentation required to substantiate such
      compliance.

	 	 	 
	15.3 	
      Compliance with Import and Export Regulations. The
      Parties shall cooperate to comply with all export control regulations of
      the places of manufacture of the Products. In order for RDO and RDR to
      comply with U.S. and EU import and export regulations, Supplier
    shall:

	 	 	 
		(a) 	
      provide RDO with the proper Export Control Classification
      Number (“ECCN”) for Products (15 CFR 730-774);

		(b) 	
      notify RDO immediately of any change in its ECCN, whether
      such change was made voluntarily by Supplier or whether such change was
      made at the direction of a government authority;

		(c) 	
      notify RDO if any Product is listed or becomes listed on
      the U.S. Munitions List (22 CFR 121);

		(d) 	
      mark Products with the correct country of
  origin;

		(e) 	
      provide all relevant information required by RDO in order
      to obtain a license or classify the Product for import or export;
    and,

		(f) 	
      provide RDR with respective numbers/codes of the Products
      according to the EU Dual Use List and/or the US Commerce Control List or
      any other EU and US export control regulation, and, further, notify RDR of
      the percentage (%) of the US originated contents in the Products
      delivered.

	16. 	
      MISCELLANEOUS

	 	 
	16.1 	
      Assignability. Supplier shall not assign or
      otherwise transfer (including by operation of law or pursuant to a merger,
      consolidation or sale of all or substantially all of the assets relating
      to this Agreement) this Agreement or its obligations hereunder to any
      third party without prior written consent from RDR and RDO, which consent
      shall not be unreasonably withheld.

	 	 
	16.2 	
      Subcontractors. In the event Supplier determines
      that subcontractors are required to perform any of Supplier’s obligations
      pursuant to this Agreement, Supplier shall require such subcontractor to
      comply with all Applicable Laws and the requirements of this Agreement,
      including without limitation the FDA’s Quality System Regulation set forth
      at 21 C.F.R. Part 820, to the extent applicable and the Quality
      Requirements. Supplier shall hold RDR and RDO harmless from any loss or
      liability incurred by RDR and RDO as a result of Supplier’s failure to
      comply with this Section 14.2. Supplier shall be liable for any
      acts or omissions of any subcontractor to the same extent as if they were
      the acts or omissions of Supplier.

	 	 
	16.3 	
      Survivability. The rights and obligations of
      Section 2.5 (Tooling), Section 5 (Representations,
      Warranties and Covenants), Section 6 (Records and Audits),
      Section 7 (Product Recalls), Section 8.3 (Lifetime Buy),
      Section 9 (Indemnification), Section 11 (Confidentiality),
      Section 12 (Intellectual Property), Section 15 (Compliance
      with Laws), Section 16 (Miscellaneous), Exhibit E (Quality
      & Change Control Requirements) and Exhibit F (Additional
      Remedies for Delays and Non-Conforming Products) shall survive any
      termination of this Agreement and shall bind the Parties and their legal
      representatives, successors, and assigns.

	 	 
	16.4 	
      Entire Agreement. This Agreement embodies the
      entire understanding and agreement among the Parties and supersedes all
      previous negotiations, representations, writings and agreements, written,
      or oral, with respect to the subject matter herein. Any additional terms
      or conflicting terms or conditions contained in any other document
      pursuant to the subject matter herein are hereby superceded. Supplier, RDR
      and RDO agree that this Agreement shall not be altered, amended
  or

	SUPPLY AGREEMENT 	PAGE 18
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

		
      modified, except in writing that is signed by an
      authorized representative of both Parties. The Exhibits attached hereto
      are an integral part of this Agreement and all references to the term
      Agreement include all Exhibits attached hereto.

	 	 
	16.5 	
      Non-Waiver. No term or provision hereof shall be
      deemed waived and no breach excused unless such waiver or consent shall be
      in writing and signed by a duly authorized representative of the Party
      claimed to have waived or consented.

	 	 
	16.6 	
      Severability. If any provision of this Agreement
      is invalid or unenforceable under any Applicable Laws, the provision is to
      that extent to be deemed omitted, and the remaining provisions shall not
      be affected in any way. To the extent any provision is invalid or
      unenforceable in a particular Jurisdiction under Applicable Laws of that
      jurisdiction, the provisions is to that extent deemed omitted with respect
      to the affected jurisdiction, but remains in full force and effect in the
      remaining jurisdictions.

	 	 
	16.7 	
      Independent Relationship of the Parties. Supplier,
      RDR and RDO intend that an independent contractor relationship shall be
      created by this Agreement, and nothing herein shall be construed as
      creating an employer/employee relationship, partnership, joint venture, or
      concerted action. Personnel assigned by either Party to provide
      deliverables under this Agreement will be employees of said Party and will
      not for any purpose be considered employees or agents of the other Party.
      Each Party assumes full responsibility for the actions of such personnel
      while performing all its obligations hereunder, either at Supplier’s or
      Purchaser’s facility, and shall be solely responsible for their
      supervision, daily direction and control, payment of salary (including
      withholding of income taxes and social security), workmen’s compensation
      and occupational disease insurance as required by law, comprehensive
      public liability insurance, compensation, disability benefits and the
      like. Supplier agrees that, while its personnel are on Purchaser’s
      premises, they will conform to all Purchaser’s work rules, safety
      regulations and its standard practices governing behavior of its own
      employees. Also, Supplier agrees to require such personnel to work in a
      manner which will comply with all Applicable Laws governing said work
      practices.

	 	 
	16.8 	
      Notices. All notices, consents, waivers and other
      communications required or permitted by this Agreement shall be in writing
      and shall be deemed given to a Party when (a) delivered to the appropriate
      address by hand or by nationally recognized overnight courier service
      (costs prepaid); (b) sent by facsimile with confirmation of transmission
      by the transmitting equipment; or (c) received or rejected by the
      addressee, if sent by certified mail, return receipt requested, in each
      case to the following addresses, facsimile numbers and marked to the
      attention of the person (by name or title) designated below (or to such
      other address, facsimile number, e- mail address or person as a Party may
      designate by notice to the other Parties):

	 	if to RDO to: 	Roche Diagnostics Operations,
      Inc. 
	 	  	9115 Hague Road 
	 	  	Indianapolis, Indiana 46250

	 	  	Attn: Purchasing Manager 
	 	  	Fax No.: (317) 521-3080 
	 	  	  
	 	  	  
	 	with a copy to: 	Law Department 
	 	  	Roche Diagnostics Corporation
  
	 	  	9115 Hague Road 
	 	  	Indianapolis, Indiana 46250

	 	  	Fax No.: (317) 521-2840 
	 	  	  
	 	if to RDR to: 	Roche Diagnostics Ltd. 
	 	  	Forrenstrasse 
	 	  	6343 Rotkreuz 
	 	 	Switzerland
  

	SUPPLY AGREEMENT 	PAGE 19
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

	 	  	Attn: Joachim Doepper 
	 	  	Fax No.: +41 (41) 798-5215 
	 	  	  
	 	  	  
	 	with a copy to: 	Legal Department 
	 	  	Roche Diagnostics Ltd. 
	 	 	Forrenstrasse

	 	 	6343 Rotkreuz

	 	 	Switzerland 
	 	  	Fax No.:+ 41 (41) 798 5280 
	 	  	  
	 	  	  
	 	  	  
	 	if to Supplier to: 	Response Biomedical Corporation
    
	 	  	1781 – 75th Avenue W.
    
	 	  	Vancouver, British Columbia V6P
      6P2 
	 	  	Canada 
	 	  	Attn: Chief Executive Officer
  
	 	  	Fax No.: (604) 456-6066 
	 	  	  
	 	  	  
	 	with a copy to: 	Heller Ehrman LLP 
	 	  	701 Fifth Avenue, Suite 6100
  
	 	  	Seattle, Washington 98104 
	 	  	Attn: Alison Freeman-Gleason
  
	 	  	Fax No.: (206) 447-0849
  

16.9 Governing Law; Dispute Resolution. The Parties agree
  to use reasonable efforts in a good faith attempt to settle as promptly as possible
  any and all disputes arising from this Agreement or a transaction conducted
  pursuant to this Agreement, in the following order of preference: (a) good faith
  negotiation between executives of Purchaser and Supplier who have authority
  to fully and finally resolve the dispute; and then (b) non-binding mediation
  at a location acceptable to the Parties using a neutral mediator having experience
  with the industry (with the costs therefore shared equally). All negotiations
  pursuant to this clause shall be treated as Confidential Information in accordance
  with the provisions of Article 21 of this Agreement. Finally, as a last resort,
  either Party may commence litigation. Each Party consents to the New York courts'
  personal jurisdiction. Any questions, claims, disputes, remedies or procedural
  matters shall be governed exclusively by the laws of the State New York and
  of the United States of America, without regard to its principles of conflicts
  of law. The exclusive venue for any and all litigation relating to this Agreement
  shall be in the city of New York in the state or federal court having subject
  matter jurisdiction. The Parties hereby waive their right to a jury trial.

	16.10 	
      Use of Trademark and Name. Except as otherwise set
      forth in this Agreement, Supplier may not use RDR’s or RDO’s name or
      trademarks, or refer to or disclose the existence of this Agreement or the
      obligations performed hereunder, directly or indirectly, without the prior
      written consent of RDR’s or RDO’s Corporate Communications department.
      Except as otherwise set forth in this Agreement, RDR and/or RDO may not
      use Supplier’s name or trademarks, or refer to or disclose the existence
      of this Agreement or the obligations performed hereunder, directly or
      indirectly, without the prior written consent of Supplier.

	 	 
	16.11 	
      Cumulative Rights and Remedies. The rights and
      remedies provided in this Agreement and all other rights and remedies
      available to either Party at law or in equity are, to the extent permitted
      by law, cumulative and not exclusive of any other right or remedy now or
      hereafter available at law or in equity. Neither asserting a right nor
      employing a remedy shall preclude the
concurrent

	SUPPLY AGREEMENT 	PAGE 20
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

assertion of any other right or
employment of any other remedy, nor shall the failure to assert any right or
remedy constitute a waiver of that right or remedy. 

16.12 Force Majeure. Except as to payments
required under this Agreement, if any default or delay occurs which prevents or
materially impairs a Party’s performance and is due to a cause beyond the
Party’s reasonable control, and provided that the default or delay is not caused
by or the fault of such Party, including but not limited to an act of God,
flood, fire, explosion, earthquake, casualty, accident, war, revolution, civil
commotion, terrorism, blockade or embargo, injunction, law, proclamation, order,
regulation or governmental demand, the affected Party shall promptly notify the
other Party in writing of such cause and shall exercise diligent efforts to
resume performance under this Agreement as soon as possible. Neither Party will
be liable to the other Party for any loss or damage due to such cause and the
Term will not be extended thereby. No Party may terminate this Agreement because
of such default or delay except upon thirty (30) days prior written notice to
the other Party if the default or delay has existed for six (6) months and is
continuing at the end of the thirty (30) day notice period. 

[signature page follows] 

	SUPPLY AGREEMENT 	PAGE 21
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

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

	“RDO” 	 	“Supplier” 
	 	 	 	 	 
	ROCHE DIAGNOSTICS OPERATIONS, INC. 	 	RESPONSE BIOMEDICAL CORP 
	 	 	 	 	 
	By: 	/s/ Mary
      McCain 	 	By: 	/s/ S. Wayne Kay 
	  	Mary McCain 	 	  	S. Wayne Kay 
	 	 	 	 	 
	Title: 	Vice President, Supply Chain 	 	Title: 	Chief Executive Officer 
	Date: 	 
                       “June
      23, 2008” 	 	Date: 	                   “June
      24, 2008” 
	  		 	  	  
	 	 	 	 	 
	“RDR” 	 	  	  
	 	 	 	 	 
	ROCHE DIAGNOSTICS LTD. 	 	  	  
	 	 	 	 	 
	By: 	/s/ Verena
      Passauer 	 	  	  
	  	Verena Passauer 	 	  	  
	  	  	 	  	  
	 	 	 	 	 
	Title: 	Legal Counsel 	 	  	  
	Date: 	“June
      26, 2008” 	 	  	  
	 	 	 	 	 
	  	  	 	  	  
	By: 	/s/ Dirk
      Ehlers 	 	  	  
	  	Dirk Ehlers 	 	  	  
	 	 	 	 	 
	  	  	 	  	  
	Title: 	Head of Professional Diagnostics 	 	  	  
	Date: 	 
                       “26/6/08”
    	 	  	  

	SUPPLY AGREEMENT 	PAGE 22
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

EXHIBIT A 

Products 

  	Group 	Item 	Detail 	Qty 	Dexcription
	Roche Branded RAMP®
      200 CONTROL MODULE 	Control Module 	Top Assembly, Control Module 	1 	   
	  	Box
	Packaging, CM Box 	1 	 
	   	Box Insert 	Packaging, Korrvu Box Insert Set
    	1 	   
	  	Box
      Filler 	Packaging, CM Box Filler Insert 	1 	 
	   	USB Drive / Manual 	Partner branded 256MB USB Drive
      (containing English version of the manual, any other language versions of
      the manual, and the File Conversion Utility (FCU) 	1 	   
	   	Manual 	Printed copy of the US version
      manual 	1 	   
	   	Label 	Label, Serial & Model number
      label 	1 	   
	   	Power Supply 	Universal Power Supply 100-240
      VAC 50-60Hz) 	1 	   
	   	Cable 	Accessory, Cable, AC Line, NA
      (North American Plug and Cable) 	1 	   
	   	Box Label 	Label, Box Label (RCU) 	1 	   
	   	CD-ROM Label 	CD-ROM disk containing the Reader
      Configuration Utility Technical Service label 	1 	   
	   	DVD 	Training DVD (provided by Roche)
    	1 	   
	  	Card
    	Warranty card 	1 	 
	  	Label
    	Content label 	1 	 
	  	Label
    	Shipping/ storage conditions label 	1 	 

	SUPPLY AGREEMENT 	PAGE 23
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

Exhibit A 

Products 

  	Group 	Item 	Detail 	Qty. 	Description 
	Roche Branded RAMP® 200
      TEST MODULE 	Test Module 	Top Assembly, Test Module 	1 	   
	   	Label 	Label, Serial & Model number
      label 	1 	   
	  	Box
	Packaging, TM Box 	1 	 
    
	   	Box Insert 	Packaging, Korrvu Box Insert Set
    	1 	   
	   	Label 	Label, Serial & Model number
      label 	1 	   
	   	Cable 	Connection cable to RAMP®
      200 CONTROL MODULE 	1 	   
	   	Box Label 	Label, Box Label 	1 	   
	  	Label
    	Technical Service label 	1 	 
    
	  	Card
    	Warranty card 	1 	 
    
	  	Label
    	Content label 	1 	 
    
	   	Label 	Shipping/ storage conditions
      label 	1 	   

	SUPPLY AGREEMENT 	PAGE 24
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

Exhibit A 

Products 

  	Group 	Item 	Detail 	Qty. 	Description 
	PRINTER 	Printer 	Zebra
      Printer, TLP2824 	1 	 
    
	   	USB Cable 	Cable, USB, 6ft, A-Male to B-Male, Molded,
      24AWG, Beige with Ferrite, clip on 	1 	   
	   	Power Supply 	Universal switching power supply 	1 	   
	   	Labels 	Accessory, 500 Printer Labels, 2.5” x 3”, Zebra
      Technologies 	1 	   
	   
      	Ribbon
    	Accessory, Printer Ribbon, Wax 	1 	 
    
	   	Plug Sets 	Plug Sets for US/Canada, EU 	2 	1 US/Canada 1 EU 
	  	Box
	Packaging, TM Box 	1 	 
    
	  	Card
    	Warranty card 	1 	 
    
	  	Label
    	Content label 	1 	 
    
	  	Label
    	Shipping/ storage conditions label 	1 	 
    
	  	Box
      Label 	Label,
      Box Label 	1 	 
    
	  	Manual
    	Printed copy of the printer manual 	1 	 
    

	SUPPLY AGREEMENT 	PAGE 25
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

Exhibit A 

Products 

  	Group 	Item 	Detail 	Qty. 	Description 
	BAR CODE SCANNER 	Bar Code Scanner 	Symbol Tech. LS 9208 Bar Code
      Scanner 	1 	   
	   	USB Cable 	Cable, USB, Sym. Bar Code
      Scanner, 7ft with Ferrite, clip on 	1 	   
	   	Quick Start Card 	From Symbol 	   	   
	  	Manual
    	Symbol Manual 	1 	 
    
	  	Box
	  	1 	 
    
	   	Third party Warranty 	Symbol Warranty Card 	1 	   

	SUPPLY AGREEMENT 	PAGE 26
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

Exhibit A 

Products 

  	Group 	Item
      	Detail
      	Qty. 	Description 
	NT- proBNP ASSAY 	   	Each 	RAMP® NT-proBNP Assay
        kit contains all the reagents necessary for the quantification of NT-proBNP
        in EDTA whole blood using the RAMP 200 Control and Test Modules 
	   	Cartridges 	RAMP® NT- proBNP Test
        Cartridges 	25 	RAMP® NT-proBNP Test
        Cartridges contain nitrocellulose strips with antibodies, as well as sample
        and wicking pads 
	   	Tips 	RAMP® NT-BNP Assay Tips
        (pouched with Test cartridges) 	25 	RAMP® NT-proBNP Assay
        Tips contain fluorescent-dyed latex conjugated with antibodies. 
	   	Vials 	RAMP® NT- proBNP Sample
        Buffer Vials2 	25 	RAMP® NT-proBNP Sample
        Buffer contains phosphate buffer, animal protein, surfactant, and ProClin®
        300 / ProClin® 950 as preservatives (ProClin is a registered trademark
        of Rohm and Haas Company) 
	   	Drying agent 	Drying agent (pouched with Test cartridges) 	25 	Desiccant pack 
	   	Aluminum foil lined pouch 	Aluminum foil lined pouch for cartridge and tips
      	25 	   
	   	Transfer Device 	Assay Transfer Device (75μL minipipette)
      	1 	   
	   	Lot Card 	Lot Card in antistatic bag 	1 	Proprietary EPROM programmed with lot-specific
        calibration data. 
	   	Package insert 	Package Insert 	1 	   
	  	Box
      	Packaging, Box 	1 	  
	  	Box
        Insert 	Packaging 	1 	  
	   	Label 	Content / Lot / expiry label 	1 	   
	   	Label 	Shipping/ storage conditions label 	1 	   

	SUPPLY AGREEMENT 	PAGE 27
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

Exhibit A 

Products 

  	Group 	Item
      	Detail
      	Qty. 	Description 
	TROPONIN I ASSAY 	   	Each 	RAMP® Troponin I Assay
        kit contains all the reagents necessary for the quantification of Troponin
        I in EDTA whole blood using the RAMP 200 Control and Test Modules 
	   	Cartridges 	RAMP® Troponin I Test
        Cartridges 	25 	RAMP® Troponin I Test
        Cartridges contain nitrocellulose strips with antibodies, as well as sample
        and wicking pads 
	   	Tips 	RAMP® Troponin I Assay
        Tips (pouched with Test cartridges) 	25 	RAMP® Troponin I Assay
        Tips contain fluorescent-dyed latex conjugated with antibodies. 
	   	Vials 	RAMP® Troponin I Sample
        Buffer Vials 	25 	RAMP® Troponin I Sample
        Buffer contains phosphate buffer, animal protein, surfactant, and ProClin®
        300 / ProClin® 950 as preservatives (ProClin is a registered trademark
        of Rohm and Haas Company) 
	   	Drying agent 	Drying agent (pouched with Test cartridges) 	25 	Desiccant pack 
	   	Aluminum foil lined pouch 	Aluminum foil lined pouch for cartridge and tips
      	25 	   
	   	Transfer Device 	Assay Transfer Device (75μL minipipette)
      	1 	   
	   	Lot Card 	Lot Card in antistatic bag 	1 	Proprietary EPROM programmed with lot-specific
        calibration data. 
	   	Package insert 	Package Insert 	1 	   
	  	Box
      	Packaging, Box 	1 	  
	  	Box
        Insert 	Packaging 	1 	  
	   	Label 	Content / Lot / expiry label 	1 	   
	   	Label 	Shipping/ storage conditions label 	1 	   

	SUPPLY AGREEMENT 	PAGE 28
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

Exhibit A 

Products 

  	Group 	Item
      	Detail
      	Qty. 	Description 
	CK-MB ASSAY 	   	Each 	RAMP® CK-MB Assay kit
        contains all the reagents necessary for the quantification of NT-proBNP
        in EDTA whole blood using the RAMP 200 Control and Test Modules 
	   	Cartridges 	RAMP® CK-MB Test Cartridges
      	25 	RAMP® CK-MB Test Cartridges
        contain nitrocellulose strips with antibodies, as well as sample and wicking
        pads 
	   	Tips 	RAMP® CK-MB Assay Tips
        (pouched with Test cartridges) 	25 	RAMP® CK-MB Assay Tips
        contain fluorescent-dyed latex conjugated with antibodies. 
	   	Vials 	RAMP® CK-MB Sample Buffer
        Vials 	25 	RAMP® CK-MB Sample Buffer
        contains phosphate buffer, animal protein, surfactant, and ProClin®
        300 / ProClin® 950 as preservatives (ProClin is a registered trademark
        of Rohm and Haas Company) 
	   	Drying agent 	Drying agent (pouched with Test cartridges) 	25 	Desiccant pack 
	   	Aluminum foil lined pouch 	Aluminum foil lined pouch for cartridge and tips
      	25 	   
	   	Transfer Device 	Assay Transfer Device (75μL minipipette)
      	1 	   
	   	Lot Card 	Lot Card in antistatic bag 	1 	Proprietary EPROM programmed with lot-specific
        calibration data. 
	   	Package insert 	Package Insert 	1 	   
	  	Box
      	Packaging, Box 	1 	  
	  	Box
        Insert 	Packaging 	1 	  
	   	Label 	Content / Lot / expiry label 	1 	   
	   	Label 	Shipping/ storage conditions label 	1 	   

	SUPPLY AGREEMENT 	PAGE 29
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

Exhibit A 

Products 

  	Group 	Item
      	Detail
      	Qty. 	Description
      
	MYOGLOBIN ASSAY 	   	Each 	RAMP® Myoglobin Assay kit contains
        all the reagents necessary for the quantification of NT-proBNP in EDTA
        whole blood using the RAMP 200 Control and Test Modules 
	   	Cartridges 	RAMP® Myoglobin Test Cartridges
      	25 	RAMP® Myoglobin Test Cartridges
        contain nitrocellulose strips with antibodies, as well as sample and wicking
        pads 
	   	Tips 	RAMP® Myoglobin Assay
        Tips (pouched with Test cartridges) 	25 	RAMP® Myoglobin Assay
        Tips contain fluorescent-dyed latex conjugated with antibodies. 
	   	Vials 	RAMP® Myoglobin Sample
        Buffer Vials 	25 	RAMP® Myoglobin Sample
        Buffer contains phosphate buffer, animal protein, surfactant, and ProClin®
        300 / ProClin® 950 as preservatives (ProClin is a registered trademark
        of Rohm and Haas Company) 
	   	Drying agent 	Drying agent (pouched with Test cartridges) 	25 	Desiccant pack 
	   	Aluminum foil lined pouch 	Aluminum foil lined pouch for cartridge and tips
      	25 	   
	   	Transfer Device 	Assay Transfer Device (75μL minipipette)
      	1 	   
	   	Lot Card 	Lot Card in antistatic bag 	1 	Proprietary EPROM programmed with lot-specific
        calibration data. 
	   	Package insert 	Package Insert 	1 	   
	  	Box
      	Packaging, Box 	1 	  
	  	Box
        Insert 	Packaging 	1 	  
	   	Label 	Content / Lot / expiry label 	1 	   
	   	Label 	Shipping / storage conditions label 	1 	   

	SUPPLY AGREEMENT 	PAGE 30
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

Exhibit A 

Products 

  	Group 	Item 	Detail 	Qty. 	Description 
	Controls 	   	Each 	RAMP® Cardiac Controls are supplied
        in two levels, 2 x 1 mL each level per box. The Controls are supplied
        as a ready-to-use frozen liquid, requiring no reconstitution or dilution.
        They are prepared in a human EDTA plasma matrix fortified to target levels
        with human source materials at different concentrations for each level.
        Sodium Azide < 0.1% has been added as a preservative to inhibit microbial
        growth 
	   	Low Control 	Bottle 1 ml, TnI, CK-MB, Myoglobin and NT- proBNP
      	2 	   
	   	High Control 	Bottle 1 ml, TnI, CK-MB, Myoglobin and NT- proBNP
      	2 	   
	   	Package insert 	Package Insert 	1 	   
	   	Box 	Packaging, Box 	1 	   
	   	Box Insert 	Packaging, Box Insert 	1 	   
	   	Label 	Content / Lot / expiry label 	1 	   
	   	Label 	Shipping/ storage conditions label 	1 	   

	SUPPLY AGREEMENT 	PAGE 31
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

Exhibit A 

Products 

  	   
             Group 	Item
      	Detail
      	 Qty. 	Description 
	Calibration Verification Controls 	   	Each 	RAMP® Cardiac CalVer Controls are
        supplied as a four-level set, 2 x 1 mL each level per box. The Controls
        are supplied as a ready-to-use frozen liquid, requiring no reconstitution
        or dilution. They are prepared in a human EDTA plasma matrix fortified
        to target levels with human source materials at different concentrations
        for each level. Sodium Azide < 0.1% has been added as a preservative
        to inhibit microbial growth. 
	   	Level 1 	Bottle 1 ml, TnI, CK-MB, Myoglobin and NT-proBNP
      	2 	      
	   	Level 2 	Bottle 1 ml, TnI, CK-MB, Myoglobin and NT-proBNP
      	2 	   
	   	Level 3 	Bottle 1 ml, TnI, CK-MB, Myoglobin and NT-proBNP
      	2 	   
	   	Level 4 	Bottle 1 ml, TnI, CK-MB, Myoglobin and NT-proBNP
      	2 	   
	   	Package insert 	Package Insert 	1 	   
	   	Box 	Packaging, Box 	1 	   
	   	Box Insert 	Packaging, Box Insert 	1 	   
	   	Label 	Content / Lot / expiry label 	1 	   
	   	Label 	Shipping/ storage conditions label 	1 	   

	SUPPLY AGREEMENT 	PAGE 32
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

Exhibit A 

Products 

  	Configuration 	Group
      	Qty. 	Description
      
	Hospital
      System 	RAMP® 200 CONTROL MODULE 	•	  
	  	RAMP® 200 TEST MODULE 	•	  
	  	PRINTER 	•	  
	  	BAR CODE
        SCANNER 	•	  
	POL System
    	RAMP® 200 CONTROL MODULE 	•	  
	  	RAMP® 200 TEST MODULE 	•	  
	  	PRINTER 	•	  
	  	BAR CODE
        SCANNER 	•	  
	Cardiac Marker
      Tests 	TROPONIN I ASSAY 	•	  
	  	MYOGLOBIN ASSAY 	•	  
	  	CK-MB
        ASSAY 	•	  
	  	NT-proBNP ASSAY 	•	  

•    [***]

	SUPPLY AGREEMENT 	PAGE 33
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

EXHIBIT B 

Ordering Entities 

Roche Diagnostics GmbH, Sandhofer Strass 116, 68305
Mannheim, Federal Republic of Germany 

Roche Diagnostics Ltd. Forrenstrasse 6343 Rotkreuz,
Switzerland 

Roche Diagnostics Operations, Inc., 9115 Hague Road, Indianapolis,
  Indiana 46250 

	SUPPLY AGREEMENT 	PAGE 34
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

EXHIBIT C 

Specifications 

RAMP® 200 CONTROL MODULE 

The RAMP® 200 CONTROL Module and
RAMP® 200 TEST Module are specified as in 

RAMP® 200 product description version
1.0
RAMP® 200 Software Requirement document version 1.0

Reference Instrument

Control Module 
Model: RAMP®200 CM 
Hardware Revision:
1.1 

Test Module 
Model: RAMP®200 TM 
Hardware Revision: 1.1

 

TROPONIN I ASSAY 

The TROPONIN I ASSAY is specified as in: 

Product claims from package insert #50117 rev8 
Fullfills
the quality release criteria: 

Troponin I 

	QC Release Criteria 	Specification 
	Barcode / Lot Card
      recognition 	•
	Accuracy – “Spike”
      Std* 	•
	Precision –
      “Spike” Std 	•
	Standard Curve parameters 
-    
      RAMP® Ratio increases with [TnI] 
-    
      R2 
-     Slope linear fit 	

        •

	External
      Controls** 	•
	Blood Samples 	•
	Correlation to
      RAMP® QC Ref. 	•

* the internal “Spike” standard is at a concentration of [***]
and is in a proprietary matrix. 
** expected values for external controls
are vendor-lot specific 

•    [***] 

	SUPPLY AGREEMENT 	PAGE 35
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

MYOGLOBIN ASSAY 

The MYOGLOBIN ASSAY is specified as in: 

Product claims from package insert #50066 rev14 
Fullfills
the quality release criteria: 

Myoglobin

	QC Release Criteria 	Specification 
	Barcode / Lot Card
      recognition 	•
	Accuracy – 0 ng/mL
      Std* 	•
	Accuracy – “Spike”
      Std* 	•
	Precision –
      “Spike” Std 	•
	Standard Curve parameters 
-    
      RAMP® Ratio increases with [Myo] 
-     Mean
      conversion factor (200 ng/mL) 
-     R2
    	

        •

        

	External
      Controls** 	•
	Blood Samples 	•
	Correlation to
      RAMP® QC Ref. 	•

* The internal “0” standard is in a proprietary matrix. The
internal “Spike” standard is at a concentration of [***] and is in a proprietary
matrix. 
** Expected values for external controls are vendor-lot specific

•    [***] 

CK-MB ASSAY 

The CK-MB ASSAY is specified as in: 

Product claims from package insert #50067 rev14 
Fullfills
the quality release criteria: 

CK-MB

  	QC Release Criteria 	Specification 
	Barcode / Lot Card
      recognition 	•
	Accuracy – 0 ng/mL
      Std* 	•
	Accuracy – “Spike”
      Std* 	•
	Precision –
      “Spike” Std 	•
	Standard Curve parameters 
-    
      RAMP® Ratio increases with [CK-MB] 
-     Mean
      conversion factor (5/10/20 ng/mL) 
-    
      R2 	

        •

        

	External
      Controls** 	•
	Blood Samples 	•
	Correlation to
      RAMP® QC Ref. 	•

* The internal “0” standard is in a proprietary matrix.
  The internal “Spike” standard is at a concentration of [***] and is
  in a proprietary matrix. 

	SUPPLY AGREEMENT 	PAGE 36
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

** Expected values for external controls are vendor-lot
specific 

•    [***] 

NT proBNP ASSAY 

The NT proBNP ASSAY is specified as in: 

Product claims from package insert #50174 rev3 
Fullfills
the quality release criteria: 

NT-proBNP

	QC Release Criteria 	Specification 
	Barcode / Lot Card
      recognition 	•
	Accuracy – 0 ng/mL
      Std* 	•
	Accuracy – “Spike”
      Std* 	•
	Precision –
      “Spike” Std 	•
	Standard Curve parameters 
-    
      RAMP® Ratio increases with [NT- 
      
      proBNP] 
-     Mean conversion factor
      
-     R2 	

        •

        

	External
      Controls** 	•
	Blood Samples 	•
	Correlation to
      RAMP® QC Ref. 	•

* the value of the internal “Spike” standard is currently
  under revision but is expected to be at a concentration approximately [***]
  and is in a proprietary matrix. 

  ** Expected values for external controls are vendor-lot specific 

  •    [***] 

TROPONIN I CONTROL 

The TROPONIN I CONTROL is specified as in 

Product claims from package inserts #50256 rev1 / 50257 rev1

Fulfills the quality release criteria (see below): 

MYOGLOBIN CONTROL 

The MYOGLOBIN CONTROL is specified as in 

Product claims from package inserts #50256 rev1 / 50257 rev1

Fulfills the quality release criteria (see below): 

CK-MB CONTROL 

The CK-MB CONTROL is specified as in 

	SUPPLY AGREEMENT 	PAGE 37
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

Product claims from package inserts #50256 rev1 / 50257 rev1

Fulfills the quality release criteria (see below): 

NT proBNP CONTROL 

The NT proBNP CONTROL is specified as in 

Product claims from package inserts #50256 rev1 / 50257 rev1

Fulfills the quality release criteria (see below): 

  	 	 	 	 	 
	  	 CalVer Controls 
	  	  	
        Controls 	  
	  	Level 0 	Level I 	Level 2 	Level 3 
	CK-MB 	  	  	  	  
	Troponin I 	  	  	  	  
	Myoglobin 	•	•	•	•
	NT- 	  	  	  	  
	proBNP 	  	  	  	  
	Reported ranges for each analyte / level are not to
        exceed [***] of the mean value. 

•    [***] 

The minimum shelf lives for cardiac tests reaching RDO in
Indianapolis are: 

Troponin          
[***] 

CK-MB             
[***] 

Myoglobin        [***] 

NT-proBNP       [***] 

The minimum shelf life for the cardiac tests reaching other
Ordering Entities will be defined later in good faith by the JPSC. 

The minimum shelf life will be revised in good faith by the
JPSC with the availability of additional stability data. 

The minimum shelf life for Cardiac and Cal/Ver controls will be
  [***] upon receipt in Indianapolis under 

  specified storage conditions of [***]

	SUPPLY AGREEMENT 	PAGE 38
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

EXHIBIT D 

1) Prices for Hospital & POL System Configuration

  	Configuration 	Group 	Price per 

        Unit 
(USD) 	Qty. 	Total Price 

        (USD) 	Total 

        Configuration 
Price
      
(USD) 
	Hospital System 	RAMP 200 CONTROL MODULE
      1) 	•	•	•	  
	  	RAMP 200 TEST MODULE 1) 	•	•	•	  
	  	PRINTER 1) 	•	•	•	  
	  	BAR CODE SCANNER 1) 	•	•	•	  
	  	  	•	•	•	•
	POL System
    	RAMP 200 CONTROL MODULE 1) 	•	•	•	  
	  	RAMP 200 TEST MODULE 1) 	•	•	•	  
	  	PRINTER 1) 	•	•	•	  
	  	BAR CODE SCANNER 1) 	•	•	•	  
	  	  	  	  	  	•

•    [***] 

  1)for details see Exhibit A – Products 

	SUPPLY AGREEMENT 	PAGE 39
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

2) Prices for Assay Kits (volume dependent) 

  	  	 Purchasing
        Prices (USD) 
	Assay Kit
        	•Single Tests p.a. 4)	•Single Tests p.a. 4)	•Single Tests p.a. 4)	•Single Tests p.a. 4)
	NT-proBNP 5)
        	•
      	•	•	•
      
	Troponin I 5),
        6) 	•
      	•
      	•
      	•
      
	CK-MB 5), 6)
      	•
      	•
      	•
      	•
	Myoglobin 5),
        6) 	•
      	•
      	•	•
      

•    [***] 

4) Volumes to depend on single assay quantities 

  5) for details see Exhibit A – Products 

  6) Troponin I, CK-MB, and Myoglobin volumes to be cumulative

	SUPPLY AGREEMENT 	PAGE 40
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

3) Prices for Spare Parts

  	Reference Group 7)	Item 	Qty. 	Total Price 

        (USD) 
	NT-proBNP, Troponin I, CK-MB, Myoglobine Assay Kits 	Assay Transfer Device (75μL
      minipipette) 	•	•
	Ramp
      200 Control Module 	USB Drive, preloaded and
      branded 	•	•
	Ramp
      200 Control Module 	Power Supply 	•	•
	Ramp
      200 Test Module 	Cord from Test Module to Control
      Module 	•	•
	Printer 	Printer Ribbon Roll, Zebra
      Technologies 	•	• 8) 
	Printer 	Accessory, 500 Printer Labels,
      2.5” x 3”, Zebra Technologies 	•	• 8) 

•    [***] 

7) for details see Exhibit A – Products 

  8) not to be sold/stocked by RBC, third party price 

	SUPPLY AGREEMENT 	PAGE 41
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

4) Prices for Controls 

  	Kit 	Purchasing 

        Prices
      (USD) 

	RAMP® Cardiac 
Controls 	•

	RAMP® Cardiac 
CalVer Controls 	•

•    [***] 

	SUPPLY AGREEMENT 	PAGE 42
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

5) Worldwide Minimum Purchase Quantities 

TABLE 1: Hospital System 

  	
	 Worldwide
        Minimum Purchase Quantities 

        [***] 
	Configuration
      	•
      	•	•	•	•
      
	Hospital 	•	•	•
      	•
      	•
      

•    [***] 

TABLE 2: POL System 

  	 	Worldwide Minimum Purchase
        Quantities 

        [***] 
	Configuration
      	•	•	•
      	•
      	•
      
	POL 	•
      	•	•
      	•
      	•
      

•    [***] 

	SUPPLY AGREEMENT 	PAGE 43
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

EXHIBIT E 

QUALITY & CHANGE CONTROL

	1. 	
      Roles. Supplier is the manufacturer of the
      Product(s), as defined in 21 CFR 820.3(o). Supplier shall comply with all
      Regulatory Laws applicable to a manufacturer of finished medical devices,
      including without limitation, pre-market notification and quality system
      requirements, if applicable.

	 	 
	2. 	
      Changes to Products or Specifications Requested by RDR
      or RDO. RDR and RDO reserve the right to request changes to the
      Product or Specifications upon written notice delivered to Supplier. Upon
      receiving such written request from RDR or RDO, Supplier shall deliver to
      RDR or RDO within a reasonable time, but in no event more than fifteen
      (15) business days following receipt of the request, a report setting
      forth Supplier’s best judgment as to the probable effect on the proposed
      changes (the “Change Report”). Depending on the extent of the
      impact of the proposed changes to the Products or Specifications, RDR, RDO
      and Supplier agree to cooperate and negotiate, in good faith, an amendment
      to this Agreement, if required, to address the terms and conditions in
      this Agreement that are affected by the requested change. Notwithstanding
      anything to the contrary in this Agreement, no change shall be implemented
      by Supplier until an amendment is negotiated or until final written
      approval by RDR and RDO is provided regarding such change. If such written
      approval is provided by RDR and RDO or an amendment is negotiated,
      Supplier shall maintain control records that demonstrate appropriate
      validation of all engineering and process changes in accordance with the
      standards set forth in Paragraph 5 of this Exhibit E. Supplier
      shall, in addition, maintain control records that document the effective
      dates, lot numbers, and/or serial numbers of all engineering and process
      changes in accordance with the standards set forth in Paragraph 5 of
      this Exhibit E. The document control system must ensure that obsolete
      drawings and Specifications are removed from all areas of use.

	 	 
	3. 	
      Changes to Manufacturing Processes, Product or
      Specifications Requested by Supplier. Supplier must have written
      authorization from RDR or RDO prior to incorporating any change into the
      Manufacturing Processes or Product(s) that affects the Specifications, or
      the Specifications themselves (including without limitation, changes
      incorporated by Supplier’s vendors, manufacturers, and/or subcontractors).
      No Products shall be manufactured with such changes and no shipments shall
      be delivered incorporating such changes until written authorization is
      received from RDR’s or RDO’s Source Development Group. All requested
      changes by Suppler shall be provided to RDR or RDO in a form reasonably
      acceptable to RDR or RDO. RDR or RDO shall respond to the change request
      in writing within 60 days. Supplier shall maintain control records that
      demonstrate appropriate validation of all engineering and process changes
      in accordance with the standards set forth in Paragraph 5 of this
      Exhibit E. Supplier shall, in addition, maintain control records that
      document the effective dates, lot numbers, and/or serial numbers of all
      engineering and process changes in accordance with the standards set forth
      in Paragraph 5 of this Exhibit E. The document control system must
      ensure that obsolete drawings and specifications are removed from all
      areas of use.

	 	 
	4. 	
      Product Quality. Supplier expressly covenants and
      warrants that all Products furnished under this Agreement shall conform to
      all Specifications, will be new, will be free from defects in materials
      and workmanship, will be merchantable, will be fit for their intended
      purposes, and will be properly packaged and labeled. This warranty shall
      apply for a period of five years following receipt of Products by
      Purchaser, for Product(s) that are instruments manufactured by Supplier,
      unless otherwise expressly provided for herein. This warranty shall apply
      for a period of fifteen (15) months for the following Product(s): printer,
      bar code scanner and USB devices. Supplier shall promptly correct, repair
      or replace defective Products to RDR’s and RDO’s satisfaction. At RDR’s or
      RDO’s sole discretion, RDR, RDO or a third party at their direction, may
      make corrections, repairs or replacements necessary to cure Supplier’s
      breach of this warranty, whenever time or other market conditions prevent
      RDR or RDO from waiting for Supplier to cure such breach or in the event
      Supplier fails to satisfactorily make such corrections, repairs
  or

	SUPPLY AGREEMENT 	PAGE 44
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

		
      replacement within a commercially reasonable time or
      provide adequate assurances that it will do so. In the event of a breach
      of this warranty, Supplier agrees to reimburse RDR and RDO for any and all
      damages associated with such breach including any and all costs incurred
      for freight, sorting, reworking, replacement product, customer bulletins
      and Product Recalls.

	 	 
	5. 	
      Compliance with Quality Assurance and Quality System
      Regulations. Supplier represents and warrants as follows: (a) the
      Manufacturing Processes used to produce the Products comply with all
      Applicable Laws, including GMPs, and have been validated in compliance
      with the FDA’s Quality System Regulations at 21 C.F.R. Part 820, (b) the
      Manufacturing Processes comply with ISO 900x or ISO 13485 series standard
      in the most current version, including all future changes and
      substitutions, and (c) the Manufacturing Processes comply with the
      requirements of European IVD directive (98/79/EC). Supplier further
      represents and warrants that Supplier shall maintain purchasing controls
      in accordance with all Applicable Laws, including but not limited to 21
      C.F.R. Part 820.50, and shall establish and maintain procedures to ensure
      that Supplier’s subcontractors, vendors and manufacturers comply with all
      such Applicable Laws. Supplier shall provide RDR and RDO with any
      applicable validation certificates upon request. Supplier represents and
      warrants that an installation qualification, operational qualification,
      and performance qualification has been performed on all applicable aspects
      of the Manufacturing Processes. Without limiting the warranty in this
      Paragraph, Supplier guarantees that none of the Products, at the
      time of delivery, are adulterated or misbranded within the meaning of the
      Federal Food, Drug, and Cosmetic Act, as amended (21 U.S.C. 321-394) (the
      “Act”), or similar law of any other jurisdiction. All warranties
      and commitments set forth in this Paragraph shall be deemed to be
      made and given by Supplier on a continuing basis throughout the Term of
      this Agreement and until all of Supplier’s obligations have been
      satisfied.

	 	 
	6. 	
      Incoming Quality Control Tests/Inspections.
      Supplier shall perform appropriate incoming quality control tests and/or
      inspections to determine that the quality of the component parts and/or
      raw materials used in the manufacture of the Product(s) meets Supplier’s
      requirements. Supplier shall keep complete, accurate, and reproducible
      records of all data relating to such component parts and/or raw materials.
      Supplier shall maintain an appropriate system for auditing its
      subcontractors, vendors or manufacturers (if any).

	 	 
	7. 	
      Compliance with European IVD Directives. For the
      Product(s) supplied under this Agreement, Supplier shall maintain
      comprehensive technical documentation (including complete production
      process documents and testing documentation and a listing of associated
      operating procedures and drawings for the manufacture of the Product(s) to
      support the Product(s) submission for IVDD compliance) as required by the
      European IVD Directive. Supplier and Supplier’s Affiliates shall maintain
      reproducible records of all such technical information and shall make such
      information available to RDR and RDO within 48 hours of its requests to
      assure compliance with the European IVD Directive. Supplier warrants the
      correctness and completeness of this technical documentation and is aware
      that RDR and RDO may rely on it.

	 	 
	8. 	
      Final Inspection of Lots. Supplier shall use a
      statistically valid sampling plan to test and/or inspect every lot of
      Product(s) to be delivered to Purchaser for compliance with the
      Specifications and the other terms and conditions of this Agreement prior
      to shipment, and shall issue a certificate of analysis in a form
      reasonably satisfactory to RDR and RDO in respect thereof.

	 	 
	9. 	
      Reports, Complaints and Inquiries from Governmental
      Authority.

(a) Adverse Event Reports. RDR
or RDO shall report any adverse device events, malfunctions, incidents, near
incidents and other reportable events for the Product to the Supplier within 48
hours of the occurrence of the event. Supplier shall be responsible for
reporting adverse device events, malfunctions, incidents, near incidents and
other reportable events for the Product to relevant Regulatory Authorities
pursuant to the Regulatory Laws of any jurisdiction in which the Product is
marketed or sold, including the FDA’s medical device reporting requirements set
forth in 21 C.F.R. Part 803. RDR and RDO shall provide such assistance and
information as Supplier reasonably 

	SUPPLY AGREEMENT 	PAGE 45
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

requests to fulfill its reporting
obligations for the Product. Supplier shall deliver to RDR and RDO a copy of any
such report within two (2) business days after submitting the report to a
Regulatory Authority. Supplier shall maintain files and records as required by
21 C.F.R. § 803.18 (or similar provisions of other Regulatory Laws, as
applicable). 

(b) Complaints. Each Party shall
  cooperate fully with the other Party in dealing with customer complaints concerning
  the Product(s) and shall take reasonable action to promptly resolve and follow
  up with regard to such complaints. Without limiting the generality of the foregoing,
  Supplier shall: (1) keep and maintain records of all customer complaints received
  by Supplier relating to the Product(s) as required by 21 C.F.R. § 820.198
  (or similar provisions of other Regulatory Laws); (2) notify RDR and RDO of
  all such complaints; and (3) otherwise cooperatively undertake investigations,
  provide information and analysis, and conduct such follow-up activities as reasonably
  requested by RDR and RDO, including providing to RDR and RDO an explanation
  or summary of each response to a complaint within fifteen (15) days. RDR and
  RDO shall: 1) keep and maintain records of all customer complaints received
  by RDR and RDO relating to the Product(s) as required by RDR and RDO; 2) notify
  Supplier upon receipt of any information that indicates a potentially significant
  effect on the safety or efficacy of the Product(s); and (3) otherwise cooperatively
  undertake investigations, provide information and analysis, and conduct such
  follow-up activities as reasonably requested by Supplier. 

(c) Inquiries from Governmental
Authority. If either Supplier, RDR or RDO receives notice of an inspection,
audit, or inquiry by a Governmental or Regulatory Authority relating to the
Product(s), arising from the any activities under this Agreement, or concerning
either Party's compliance with Regulatory Laws in connection with its activities
under this Agreement, the Party receiving such notice of inspection, audit, or
inquiry will notify the other Party as soon as possible, but in no event later
than 48 hours after receipt of such notice or notification, and provide to the
other Party, within 72 hours, copies of any documents received from or supplied
to the Governmental Authority or Regulatory Authority that are relevant to the
inspection or inquiry. Supplier, RDR and RDO agree to cooperate with each other
during any inspection, investigation or other inquiry, including providing
information and/or documentation as requested by the Regulatory Authority. 

(d) Right to Participate in
Regulatory Inspections or Audits. Supplier shall permit RDR or RDO or any
representative designated by them to be present during any inspection or audit
by a Governmental or Regulatory Authority of Supplier’s facilities or records if
the inspection or audit is reasonably expected to relate to the Product(s) or
the manufacture thereof or otherwise arise from or relate to any activities
under this Agreement. RDR and RDO shall have the right to review and participate
in drafting any response to any such inspection or audit, or any other request
for information from a Regulatory Authority pertaining to the Product(s) or any
activities under this Agreement, prior to Supplier’s submission of such response
to the Regulatory Authority. Supplier shall provide to RDR and RDO copies of all
information furnished to or received from any Regulatory Authority prior to,
during, or following any audit or inspection of Supplier’s facilities, within
the time frames set forth in Paragraph 9(c). 

	10. 	
      Regulatory Approval. Supplier represents and
      warrants to RDR and RDO that Supplier has obtained any marketing approvals
      or clearances for the Products required by applicable Regulatory
      Authorities in the United States and other applicable jurisdictions.
      Supplier hereby grants to RDR and RDO the fully paid-up right during the
      Term of this Agreement to use any and all regulatory approvals and
      clearances related to the Products owned by or licensed to Supplier. RDR
      and RDO shall have a right of reference to any and all technical,
      scientific and clinical data in any application for marketing approval or
      clearance for the Product.

	 	 
		
      The decision to seek regulatory or marketing approvals in
      any jurisdictions not in place on the effective date and the
      responsibility to obtain such approvals and clearances will be addressed
      by the joint Executive Management Team.

	SUPPLY AGREEMENT 	PAGE 46
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

	
11. 		
Supplier Corrective Action Request. If, during the Term of this Agreement, RDR or RDO reasonably identifies an issue that may affect the quality of a Product(s), its components or raw materials, Supplier’s
Manufacturing Processes or quality control processes or procedures, RDR or RDO may at its sole discretion, issue to Supplier a Supplier Correction Action Request (each a “SCAR”). Within fifteen (15) Business Days after the issue
date of the SCAR, Supplier shall deliver to RDR and RDO a detailed response to the SCAR (a “SCAR Response”). If final closure and verification on the issue or issues identified in the SCAR cannot be achieved within fifteen (15)
Business Days of Supplier’s receipt of the SCAR, as part of the SCAR Response, Supplier shall submit to RDR and RDO an action plan detailing its proposed plan to correct the issues identified in the SCAR. RDR and RDO shall have the right to
review and propose revisions to any such action plans, and all such action plans are subject to RDR’s and RDO’s written approval. Following RDR’s and RDO’s approval and Supplier’s initial implementation of the corrective
action plan, Supplier shall provide bi-weekly status reports, upon request, to RDR and RDO until final verification of the corrective action is accomplished and RDR and RDO accept the corrective action by written notice to Supplier.

	
	 	 
	
12. 		
Regulatory Documentation. Supplier shall accurately prepare and maintain all necessary and customary records related to the Manufacturing Processes undertaken by Supplier pursuant to this Agreement in compliance with all
Applicable Laws, including, but not limited to, 21 C.F.R. Part 820, Subpart M (or similar provisions of other Regulatory Laws, as applicable). RDR and RDO shall have access to and the right to reference, copy, retain copies of, and use for any
purpose all such records, upon request and without charge.

	
	 	 
	
13. 		
Violations. Supplier shall notify RDR and RDO promptly after becoming aware of any violation of any Applicable Laws or Quality Requirements, relating to the Product(s), the Manufacturing Processes, or otherwise relating to
or arising out of Supplier’s activities pursuant to this Agreement.

	

	SUPPLY AGREEMENT 	PAGE 47
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

EXHIBIT F 
ADDITIONAL
REMEDIES FOR DELAYS, AND
NON-CONFORMING PRODUCTS 

Technology Transfer: 

In the event that this Agreement is terminated by RDR or RDO
pursuant to Section 8(a) or 8(b)(ii) or (iii), Supplier shall grant to RDR and
RDO the license required as part of the Disaster Recovery Plan set forth in
Section 10.1 of the Agreement for the unexpired portion of the Initial Term, and
shall provide all assistance and other obligations therein as if a significant
or catastrophic event occurred affecting the supply of Products.

Supplier further agrees to use commercially reasonable efforts
  to assist in a transition of supply chain requirements, including the continuation
  of manufacturing until either RDR or RDO are capable of manufacturing demanded
  volumes. RDR and RDO will pay all reasonable costs incurred by Supplier in the
  one-time transfer of manufacturing technology and ongoing support for a reasonable
  time, not longer than six (6) months. If RDR or RDO requests additional assistance
  in connection with the transferred manufacturing technology beyond that set
  forth above, RDR and RDO will request the assistance in writing and pay Supplier
  for all such assistance. 

  

	SUPPLY AGREEMENT 	PAGE 48
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

EXHIBIT G 

Tooling Requirements 

The Parties agree that all tooling, including but not limited
to equipment, fixtures, molds, dies, knifestacks, print cylinders, inspection
cameras, etc. that are provided by RDO to Supplier (hereinafter
“Tooling”) will be used exclusively by Supplier to produce Products for
RDO and title to such Tooling shall, during the Term of the Agreement remain
with RDO. In addition, Supplier agrees, at its sole cost and expense, to the
following:

	1. 	
      To keep the Tooling fully insured at replacement value
      against loss arising from fire, theft, damage and extended coverage as
      appropriate.

	 	 	 
	2. 	
      To provide a Certificate of Insurance evidencing the
      coverage set forth herein.

	 	 	 
	3. 	
      To store the Tooling at Supplier’s facility, as specified
      in the quarterly report described to Section 12 of this
      Exhibit, in a safe and secure condition consistent with Supplier’s
      current policy or industry standards. Should transportation of the Tooling
      to another facility be necessary, Supplier must obtain RDO’s prior
      approval. Tooling shall not be transported to another facility or
      location without RDO approval. When such approval is granted, Supplier
      shall pack and ship per RDO’s approved standards.

	 	 	 
	4. 	
      To maintain the Tooling in a state of repair, which will
      render parts, manufactured from the tooling, fit for their intended
      purpose and meets all applicable RDO specifications. Notwithstanding the
      foregoing, Supplier shall provide RDO immediate notice in the event the
      Tooling is required to be repaired, altered or modified.

	 	 	 
	5. 	
      To keep the Tooling free of all liens and encumbrances.
      To the extent required by RDO, Customer shall also consent to RDO filing a
      UCC Financing Statement for the Tooling and shall cooperate and complete
      all documentation required to evidence RDO’s ownership in the
    Tooling.

	 	 	 
	6. 	
      To allow RDO the right, at all reasonable times, upon
      reasonable notification to enter Supplier’s premises to inspect any and
      all Tooling.

	 	 	 
	7. 	
      To surrender or return the Tooling upon receipt of RDO’s
      written notice, at which time RDO agrees to pay only for the packing,
      transportation costs and insurance costs to the specified destination.
      Supplier agrees to return the Tooling in as good condition as when
      Supplier received it except for ordinary wear and tear.

	 	 	 
	8. 	
      To indemnify and hold RDO harmless from any personal
      injury or property damage, including attorney’s fees and cost of defense
      that results from Supplier’s use or custody of the Tooling.

	 	 	 
	9. 	
      To clearly mark all Tooling “Property of Roche
      Diagnostics Operations, Inc.” and clearly identify by the appropriate RDO
      part number.

	 	 	 
	10. 	
      To provide RDO nine (9) month prior written notice in the
      event the Tooling is required to be scrapped or destroyed.

	 	 	 
	11. 	
      To provide the following information to RDO’s Source
      Development Department in writing upon execution of the Agreement and
      thereafter on a quarterly basis, after the Tooling has been approved for
      production:

	 	 	 
		 •
	
      Tooling description.

		 •
	
      Specific location of Tooling.

		 •
	
      RDO part number.

		 •
	
      Estimated life of Tooling from date approved.

		 •
	
      The maintenance and repairs performed while the Tooling
      is in the Supplier’s possession.

		 •
	
      Remaining life of Tooling.

		 •
	
      Estimated maintenance cost for the next 24 month period
      divided into annual increments.

		 •
	
      Estimated replacement cost of the Tooling.

	 	 	 
	13. 	
      If the Tooling is used to produce a Product that is
      imported into the United States, Supplier shall document the Tooling as a
      separate line item in the first invoice in order to document the value for
      purposes of entry for U.S. Customs.

	SUPPLY AGREEMENT 	PAGE 49
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05 

 ROCHE DIAGNOSTICS, SALES
  AND DISTRIBUTION AGREEMENT V.12 06_19_2008
  

EXHIBIT H 

Security Guidelines for Manufacturing Facilities Located
Outside of the United States 

RDO has been accepted as a Customs-Trade Partnership Against
Terrorism (“C-TPAT”) supplier with U.S. Customs & Border Protection.
As a C-TPAT importer, RDO is required to maintain effective security processes
in its supply chain. Therefore, RDO requires each Supplier with manufacturing
facilities located outside the United States to provide RDO with a comprehensive
written security plan that includes the following items:

Physical Security: All buildings should be constructed
of materials, which resist unlawful entry and protect against outside intrusion.
Physical security should include: adequate locking devices for external and
internal doors, windows, gates and fences, segregation and marking of
international, domestic, high-value and dangerous goods cargo within the
facility by a safe, caged or otherwise fenced-in area, adequate lighting
provided inside and outside the facility to include parking areas, separate
parking area for private vehicles separate from the shipping/loading dock and
cargo areas, and internal/external communications systems in place to contact
internal security personnel or local law enforcement. 

Access Controls: Unauthorized access to the shipping,
loading dock and cargo areas should be prohibited. Controls should include: the
positive identification, recording and tracking of all employees, visitors and
vendors, and procedures for challenging unauthorized/unidentified persons. 

Procedural Security: Measures for the handling of
incoming and outgoing goods should include the protection against the
introduction, exchange, or loss of any legal or illegal material. Security
controls should include: properly marked, weighed, counted and documented
products, procedures for affixing, replacing, recording, tracking and verifying
seals on containers, trailers and railcars, procedures for detecting and
reporting shortages and overages, procedures for tracking the timely movement of
incoming and outgoing goods, proper storage of empty and full
containers/trailers/railcars to prevent unauthorized access, and procedures to
notify Customs and Border Protection in cases where anomalies or illegal
activities are detected or suspected by the company. 

Personnel Security: Companies should conduct employment
screening and interviewing of prospective employees to include periodic
background checks and application verifications in accordance with
applicable statutes and regulations.

Education and Training Awareness: A security awareness
program shall be provided to employees and include instruction on how to
recognize internal conspiracies, maintaining product integrity, and determining
and addressing unauthorized access. Provide details in the security plan
regarding this education and training awareness program.

Threat Awareness: A threat awareness program shall be
  established and maintained by security personnel to recognize and foster an
  awareness of the threat posed by terrorists and contraband smugglers at each
  point in the foreign-based logistical chain. Provide details in the security
  plan regarding this threat awareness program. 

	SUPPLY AGREEMENT 	PAGE 50
      OF 50 	CONFIDENTIAL 
	  	  	VER. 8.20.05Filed by sedaredgar.com - Response Biomedical Corporation - Exhibit 4.9

Certain information in this exhibit has been omitted as
confidential, as indicated by [***]. This information
has been filed separately with the Commission. 

MASTER MANUFACTURING AND SUPPLY AGREEMENT 

                THIS
MASTER MANUFACTURING AND SUPPLY AGREEMENT (“Master Agreement”) dated
November 30, 2006 (“Effective Date”) is between 3M Company acting through its
Medical Division (“3M”) and Response Biomedical Corporation, 100-8900 Glenlyon
Parkway, Burnaby, B.C., Canada (“RBC”). 3M and RBC are referred to jointly as
“Parties” and individually as a “Party”. 

1.            
SCOPE; EXCLUSIVITY; DEFINITIONS. 

1.1          
Concurrently with the execution of this Agreement, 3M and RBC are
entering into an Amended and Restated Joint Development Agreement (the “JDA”)
pursuant to which 3M and RBC will jointly develop Products (as defined in the
JDA) and an Equity Agreement under which 3M has agreed to purchase from RBC, and
RBC has agreed to sell 3M, Shares at agreed upon terms and conditions as
described therein The Parties also wish to establish a business relationship in
which 3M may request that RBC produce certain products. When the Parties
identify product(s) that 3M will purchase from RBC on a recurring basis, they
will sign a sub-agreement to this Master Agreement (a “Subcontract”) describing
those products (the "Products"), such Product prices, and any variations from
this Master Agreement. All Products will be made or processed in accordance with
the packaging and product specifications referenced in the applicable
Subcontract (as more fully defined below, the “Specifications”). This Master
Agreement and all Subcontracts are collectively referred to as "the Agreement."
3M’s global affiliates may purchase under the Agreement and RBC will sell
Products and/or Product Services (as the same may be defined in an applicable
Subcontract) to them under the Agreement's terms. On 3M's request, RBC will sell
any Product and/or Product Service under the Agreement's terms to the next
supplier in 3M's supply chain, who will use such Products and/or Product
Services to manufacture or process products for 3M. 

1.2          
Unless the applicable Subcontract provides otherwise:

         
  (a) During the Term, 3M and its affiliates shall purchase exclusively
  from RBC all of their commercial requirements of Products for Targets. 

         
(b) During the Term, RBC will supply all Products for Targets
exclusively to 3M and its affiliates (other than the Product described in
Exhibit A-1 hereto which shall be supplied non-exclusively).

         
(c) “Target” means a causative agent of a human infectious
disease that causes (i) hospital-acquired infections or (ii) community-acquired
infections [***]

 

 

 

 

1.3          
In addition to other terms defined throughout this Agreement, the
following initially capitalized terms in this Agreement, whether used in the
singular or plural, shall have the

1 

	1.4 	
      respective meanings set forth below:

	 	 
		
      “Deliver ” or “Delivery”
      means the transfer of possession of a tangible item, including the
      Product, to 3M FCA (Incoterms 2000) RBC’s Site or such other Incoterm
      which the Parties may agree to in writing.

	 	 
		
      “Escrow Material” means the information and data
      described in Section 23(d) hereof. “Firm Order” means a Purchase Order
      that cannot be cancelled or amended by 3M without RBC’s consent
..

	 	 
		
      “Forecast” means 3M’s written forecast of its monthly
      purchase requirements of Product for a rolling twelve (12) month
      period.

	 	 
		
      “Purchase Order” means a written request submitted by 3M
      to RBC for a specific quantity of Product by a specific Delivery date to a
      specific location.

	 	 
		
      “RBC’s Site” means RBC’s manufacturing facility at
      100-8900 Glenlyon Parkway, Burnaby, BC Canada, or such other site at which
      Product is manufactured as designated in a Subcontract .

	 	 
		
      “Specifications” means all written specifications for
      measurable and verifiable qualities, characteristics and attributes of a
      Product and all other written requirements, standards, specifications,
      quality assurance/quality control testing and other attributes pertaining
      to a Product or manufacturing or packaging of a Product that are agreed
      upon in writing by the Parties and set forth in the applicable
      Subcontract, as the same may be amended in writing from time to time by
      the Parties.

	 	 
		
      “Subcontract” means each written agreement signed by the
      Parties for the manufacture and supply of a Product, which may include the
      identification of Product, Specifications, pricing and payment terms,
      schedules, manufacturing plans, and any special conditions/requirements
      with respect to a Product, as the same may be amended from time to time in
      writing by the Parties. The Parties intend for this Agreement to be a
      master agreement governing multiple Products and agreed-upon Subcontracts
      governing each separate Product. Each fully executed Subcontract shall be
      incorporated herein by reference, made a part of this Agreement, and
      attached hereto as an exhibit .

2.          
TERM AND TERMINATION:

(a)         This
Agreement begins on the Effective Date and continues for [***] years,
unless terminated earlier as provided for herein (the “Term”). The Term may be
renewed for additional [***] year periods upon the mutual written
agreement of the Parties. 3M shall have the right to terminate this Agreement in
whole or in part upon  days prior written notice to[***] RBC at any
time after the first  [***] years of the Term. The termination of this
Agreement for any reason shall automatically terminate any and all Subcontracts,
unless the Parties otherwise agree in writing.

	(b) 	
      Either Party may terminate this Agreement or any
      Subcontract as follows:

	 	 
		
      (i) if a Party has materially breached any of its
      obligations under this Agreement or becomes unable to pay its bills and
      debts in the ordinary course of business, and such material breach (in the
      case of a breach capable of remedy) has continued for [***] days
      (or [***] days in the case of a breach resulting from
      non-payment of any

2 

amounts due) after written notice of
such breach was provided to the breaching Party by the nonbreaching Party, the
nonbreaching Party shall have the right at its option to terminate this
Agreement or any Subcontract effective upon giving written notice of such
termination to the breaching Party at the end of such [***] (or
)[***] day period. 

(ii) notwithstanding the foregoing, if
a Party materially breaches Section 21 (Confidentiality), the nonbreaching Party
may immediately terminate this Agreement or any Subcontract upon giving written
notice of such termination to the breaching Party. 

(iii) 3M shall have the right
  to terminate an applicable Subcontract following a Supply Failure as provided in
  Section 4. 

(c)        
Termination of this Agreement for any reason will not relieve the Parties of any
obligation accruing prior thereto and will be without prejudice to the rights
and remedies of either Party with respect to any antecedent breach of the
provisions of this Agreement. Sections 14 (Warranties), 15 (3M Materials), 16
(3M Equipment), 17 (Tooling), 18 (Indemnification), 20 (Limitation of
Liability), 21 (Confidentiality), 22 (Intellectual Property and Developments)
and Section 23 (Technology Transfer and License) survive termination of this
Agreement or any Subcontract.

(d)        
In the event the initial Term of this Agreement is not renewed despite
good faith negotiations between the Parties for at least  days, 3M
or[***] its designated affiliate shall have the right to receive the license
contemplated in Section 23. During the negotiation period and during the
transition time contemplated by the license, the Parties will work together to
ensure a continued supply of Products. 

(e)        [***]

 

 

 

 

 

 

 

3.          
FORECASTS; FIRM ORDER: 3M will provide RBC with a written, rolling
twelvemonth forecast of 3M’s Product purchases that 3M may revise up or down on
a monthly basis (a "Forecast") and which is not binding on 3M, except as may
otherwise be specified in the applicable Subcontract. If RBC believes it cannot
meet a Forecast, it must notify 3M within five (5) business days of receipt of
such Forecast. 

3 

4.          
ORDERS:

(a)         3M
shall submit to RBC Purchase Orders from time to time. 3M shall be obligated to
place Purchase Orders for the full amount of Product in the Firm Order.

(b)        
Each Purchase Order shall specify a Delivery date that is no earlier
than the lead-time specified in the applicable Subcontract for the Product. The
only function of 3M's Purchase Order shall be to communicate the desired
quantities of Product, shipment instructions and Delivery dates. All other terms
of the Purchase Order and all terms of any acknowledgment form or invoice of RBC
shall be void and of no effect, and the terms of this Agreement shall control
over such forms, or any other forms, unless otherwise specifically agreed to in
writing by both Parties.

(c)        
RBC shall supply 3M with Product pursuant to the Purchase Orders
submitted by 3M in accordance with the Firm Orders. RBC will accept all Purchase
Orders within  of the[***] Forecast. TIME AND RATE OF DELIVERY ARE OF
THE ESSENCE FOR ALL PRODUCTS. If RBC receives a Purchase Order in excess of
 of Forecast, RBC will[***] make all commercially reasonable efforts
to manufacture and Deliver on time that amount exceeding  of the
Forecast. [***] 3M may request in writing a modification of the Delivery date,
shipping instructions or quantity of Product in a Purchase Order. Such written
request shall be effective and binding on RBC only upon the written approval of
RBC. 

(d)        
If RBC is unable, at any time, to meet its obligation to supply 3M on a
timely basis with the quantity of Product reflected in Firm Orders for any
reason, including an event of excused performance under Section 27, RBC shall
immediately notify 3M of such inability to supply and the estimated extent of
the supply failure (including delay time and the quantity of Product involved),
and shall use commercially reasonable efforts to cure the supply problem as soon
as possible. If RBC fails, during any [***] period, to supply on a
timely basis and in accordance with the applicable Purchase Order that RBC is
required to accept pursuant to Section 4(c), at least  of the quantity
of Product set forth in such Purchase Order or if[***] RBC fails, during any
 period, to supply on a timely basis and in accordance with the[***]
applicable Purchase Order that RBC is required to accept pursuant to Section
4(c), at least  of the quantity of Product set forth in such Purchase
Order (either such occurrence, a[***] “Supply Failure”), 3M shall have, as its
sole and exclusive remedy, the right to terminate the Subcontract applicable to
the Product that is the subject of a Supply Failure upon giving written notice
to RBC of such termination and the right to exercise the license contemplated in
Section 23 through its designated affiliate.

5.          
PRICES:

(a)        
All prices of Products shall be set forth in the Subcontracts. Unless
the applicable Subcontract provides otherwise, Product prices stated in a
Subcontract include all amounts payable by 3M, other than amounts that are
payable by 3M in accordance with Incoterms 2000 (FCA, RBC’s Site). RBC will
absorb all overhead and labor cost increases without adjusting Product pricing
unless otherwise stated in this Agreement or a Subcontract. All cost savings
from the use of 3M Materials will be passed through to 3M in the form of a lower
price. 

(b)        
During the Term of this Agreement, both Parties agree they will make efforts to
reduce costs. The price for Products may be adjusted by RBC if a significant
price increase (5% or greater) to a raw material or any other bought-in
component is received. RBC agrees to provide 

4 

documentation, which may be redacted, which indicates the
percent of increase in the price of raw material or other bought-in component,
along with documentation which indicates the effect on the final Product
pricing. If the event giving rise to the price increase ceases to exist, RBC
will reduce the price back to its original price in effect prior to the price
increase. Pricing for increases in RBC’s cost of raw materials and other Product
components purchased by RBC will be adjusted no more than once per calendar
year.

(c) [***] 

6.          
PAYMENT: Payment terms are Net [***]  days. Invoices must
reference the Purchase Order number, match the Purchase Order and be issued on
or after the Delivery date. Payment of an invoice is not acceptance of any
Products. 3M may, at its discretion, on 60 days’ advance written notice require
implementation of Electronic Data Interchange, Electronic Funds Transfer, or
other electronic data communication or payment procedures. RBC will provide at
its cost the necessary technical interfaces to complete this implementation.

7.          
SHIPMENT: (a) Shipments must comply with Purchase Order instructions. All
shipments are FCA (Incoterms 2000) RBC’s Site. 3M will select transportation
modes and carriers. RBC will pay any excess freight costs caused by RBC’s
non-compliance with 3M’s reasonable instructions set forth in Purchase Orders or
in the event that RBC chooses to air freight Product in order to meet its
obligations in this Agreement, including those set forth in Section 7(b) below.
RBC will provide all shipment information to 3M within 24 hours after
Products are Delivered to 3M’s carrier.

(b)        
RBC will secure its facilities and all of its shipments made to a 3M-designated
site in accordance with the then-current U.S. Customs-Trade Partnership Against
Terrorism ("C-TPAT") security guidelines available at the U.S. Customs
website (www.cbp.gov). 

8.          
PACKAGING AND TRADEMARKS: (a) Unless a Subcontract provides otherwise,
RBC must package Products in accordance with the Specifications, as the same may
be modified from time to time by written agreement of the Parties. Product
packaging, labeling and inserts, product literature, and other advertising and
promotional materials will make reference to RAMP® and/or RBC as agreed upon by
the Parties subject to the applicable laws in a given country where Product is
marketed and sold. Each Party will comply with the other Party’s instructions
for use of the other Party’s trademarks (“Trademarks”) and disposal of Product
bearing Trademarks. A Party may only use the other Party’s Trademarks for
Product packaging and in accordance with the other Party’s written instructions.
Neither Party is licensed to use the other Party’s Trademarks for any other
purpose. Neither Party will claim any rights to the other Party’s Trademarks and
or do anything to lessen the significance of the other Party’s Trademarks.
Except as may be required (i) in order to respond to an inquiry by any
regulatory authority, (ii) in connection with any legal proceeding or (iii) as
approved in writing by the other Party, neither Party shall use the other
Party’s name in any promotional activity or suggest any affiliation with the
other Party. Neither Party will adopt, use or register any marks, businesses or
domain names confusingly similar to Trademarks of the other Party or any marks
for the Product owned or licensed by the other Party or the other Party’s
affiliates, or the other Party’s name.

(b)         RBC
will provide all information necessary for labels, packaging and package inserts
for Products, provided, however, 3M shall be finally responsible for the content
of all labels, 

5 

packaging and package inserts for Product, except to the extent
that RBC supplied inaccurate or incomplete information. 3M shall be responsible
for ensuring that the content of the label, package and package insert for each
country where the Product is marketed complies with the regulatory requirements
for that country. All artwork will be provided by 3M and will be used by RBC
only as authorized by 3M in this Agreement or as otherwise authorized by 3M in
writing. 3M shall reimburse RBC for RBC’s reasonable out-of-pocket costs and
expenses incurred in connection with labeling or packaging that becomes obsolete
for any reason other than RBC’s error or negligence, provided that in no event
shall 3M be responsible for any such costs or expenses in excess of the amount
of packaging required to fulfill 3M's then-current Firm Orders. 

9.          
SAFETY: RBC is solely responsible for safely performing its obligations
under this Agreement and for the safety of anyone working at or visiting RBC’s
facilities. 

10.         QUALITY:
RBC will comply with all terms of any quality agreement, quality plan or
other quality requirements relating to the Products referenced in the applicable
Subcontract or otherwise agreed in writing by the Parties (“Quality Agreement").
If this Agreement's terms conflict in any manner with a Quality Agreement’s
terms, this Agreement's terms will govern. RBC shall permit 3M’s personnel and
representatives, upon at least five (5) business days advance written notice and
for reasonable duration during regular business hours, to enter RBC’s Site to
inspect and audit RBC’s processes and documentation pertaining to manufacture of
Product and RBC’s compliance with this Agreement; provided, however, that such
audits shall be conducted not more than once in any twelve (12) month period,
other than "for cause" audits. “For cause” audits do not include any audit
relating to 3M Material, issues relating to quality of Product or otherwise to
confirm RBC’s compliance with this Agreement, including RBC’s obligations under
Section 23. All information obtained by 3M in any such audit which is RBC’s
Confidential Information under Section 21 shall be maintained as RBC’s
Confidential Information in accordance with Section 21. None of these
inspections or audits will relieve RBC of its obligations under this Agreement.
RBC will maintain quality assurance and quality controls as appropriate. For
Products classified as medical devices by the FDA, RBC will maintain a quality
system compliant with International Organization for Standardization standard
ISO 13485 and Quality Systems Requirements, 21 CFR Part 820 (“QSR”). 

11.         RECORDS:
RBC will, at its cost, take samples, perform inspections and issue
certificates as required by a Subcontract, Quality Plan or Specifications. RBC
will provide 3M with current Materials Safety Data Sheets for Products,
certificates of analysis, identification of materials covered by California
Proposition 65, and other related information, such as toxicological data, that
3M may reasonably request to enable 3M to comply with all applicable federal,
state, and municipal statutes, regulations, rules, and ordinances relating to
3M’s use of Products. RBC will maintain, and will make available to 3M during
any inspection and audit performed in accordance with Section 10, each Product's
design history file, device history record, and device master record, including
all documents required by Laws or reasonably requested by 3M, which may include,
but are not limited to: (a) Specifications, including all control test
specifications and release specifications; (b) in-process controls; (c) quality
audits; (d) production schedules; (e) environmental controls; (f) material
history records for each lot; (g) equipment maintenance and calibration records;
(h) process validation procedures and data; (i) defect analysis and corrective
action; (j) management reviews; (k) complaint history; (l) change histories for
documents generated by RBC; and (m) copies of all notices or correspondence
regarding any regulatory actions or filings relating to that Product, including,
without limitation, 

6 

recalls, safety alerts, medical device reports, adverse event
reports, and warning letters. RBC will promptly notify 3M of corrective actions
involving Products or any RBC’s Site.

12.        
REGULATORY COMPLIANCE: (a) RBC will cooperate with 3M to enable 3M to
meet regulatory requirements and international standards governing the
manufacture, sale and use of Products. Each Party will comply with all
applicable laws, regulations and ordinances, including, but not limited to,
laws, regulations, ordinances and rules governing environmental, hazardous waste
disposal, employee safety and health, and labor matters (collectively the
“Laws”), in performing its obligations under this Agreement. Such Laws may
include but are not limited to, as applicable, FDA regulations, Comprehensive
Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601, et
seq., as amended, the Resource Conservation and Recovery Act, 42 U.S.C. § 6901,
et seq., as amended, the Toxic Substances Control Act, 15 U.S.C. § 2601, et
seq., as amended, the Clean Water Act, 33 U.S.C. § 1251, et seq., as amended,
and the Occupational Safety and Health Act, 29 U.S.C. § 651, et seq., as
amended. RBC will also properly handle, store, transport and dispose of all
waste generated in the manufacture of Products in compliance with applicable
federal, state and local statutes, regulations, rules and ordinances and sound
environmental, health and safety practices. 3M is not, and has no
responsibilities of, a generator, handler, arranger for disposal, or disposer of
hazardous or toxic substances generated at RBC’s facilities. RBC certifies that
Products have not been produced using forced, indentured or convict labor or
using labor of persons in violation of the minimum working age law in the
country of manufacture. 

(b)        
Products, or the 3M products into which they are incorporated, may need
to comply with Laws that restrict product content, including, but not limited
to, the European Union's Directive on the Restriction of the Use of Certain
Hazardous Substances in Electrical and Electronic Equipment, known as "RoHS". If
3M notifies RBC in writing that a Product must comply with the RoHS or if a
Subcontract requires compliance with RoHS, then (i) RBC warrants to 3M that such
Product (exclusive of any 3M Materials) is either exempt from such regulation or
that such Product will not contain any the following substances in excess of the
following maximum concentration values in any homogeneous material (“Restricted
Values") unless the applicable Specifications specifically permit that substance
in a higher concentration value: (y) 0.1% (by weight) for each of lead, mercury,
hexavalent chromium, polybrominated biphenyls or polybrominated diphenyl ethers;
or (z) 75 parts per million for cadmium and (ii) for Product that is not exempt
from such regulation, RBC will provide to 3M: (1) documentation that all non-3M
Materials in such Product do not exceed the Restricted Values; (2) certification
of the exact concentration of each substance subject to the Restricted Values in
all non-3M Materials in such Product so 3M can determine if 3M Materials
combined with non-3M Materials do not exceed the Restricted Values; and (3)
completed supplier questionnaires provided by 3M for reporting on the occurrence
of other substances that may require disclosure to governmental bodies,
customers and/or recyclers. If 3M gives RBC written notice that the Restricted
Values are changed in a manner that may negatively affect RBC's obligations
("Revised Restricted Values"), then RBC warrants that Product (exclusive of 3M
Material) will be exempt from or will meet the Revised Restricted Values and,
for any Product that is not exempt from such regulation, RBC will provide to 3M
the foregoing documentation as it pertains to the Revised Restricted Values. If
any Product that is not exempt from the RoHS fails to meet the initial or
Revised Restricted Values, then 3M may, in addition to other available remedies
and at its discretion, immediately on written notice to RBC, discontinue
purchasing that Product and any 3M purchase commitment, Forecast, or Purchase
Order relating to that Product will be 

7 

automatically revised to reflect 3M's discontinuation of that
purchase; provided, however, that RBC may thereafter terminate the Subcontract
pertaining to the Product that 3M discontinues purchasing, upon giving written
notice to 3M of such termination.

(c)         RBC
certifies that, as of the Effective Date and throughout the Term, RBC has not
been and will not be, and, to the knowledge of RBC, no RBC employee, affiliate,
agent, or subcontractor performing services in any way relating to this
Agreement has been or will be, suspended or debarred or proposed to be suspended
or debarred by any federal agency for any purpose including but not limited to:
(a) participation in any U.S. federal health care program; or (b) by the U.S.
Food and Drug Administration ("FDA") under 21 U.S.C. 335. Within three business
days after the occurrence of any change affecting this certification, RBC will
give 3M written notice of the change and its impact on this certification. 

(d)        
3M shall be responsible for obtaining regulatory approval of Products
in its own name. RBC shall provide 3M with any and all information regarding the
manufacturing of Product that is reasonably necessary to enable 3M to make
regulatory submissions for regulatory approval of the Product (the “RBC
Technology Information”) for inclusion in 3M’s regulatory filings. At 3M’s
expense, RBC shall assist 3M in answering questions from regulatory authorities
concerning 3M’s regulatory submissions, insofar as such questions relate to
RBC’s activities hereunder or the RBC Technology Information.

13.         ENGINEERING
  CHANGES: Any change to a Product in any way, including but not limited to,
  raw materials, sources of supply of raw materials, equipment, tooling, contact
  materials (including but not limited to lubricants, or process aids), the manufacturing
  process or the manufacturing site is referred to as “Engineering Changes”.
  If (i) either Party seeks any Engineering Changes, or (ii) there is a material
  change in Laws that would necessitate a change in Specifications or the means
  or methods of performance under this Agreement by RBC, the Parties will meet
  and confer in good faith to determine whether and what changes, if any, should
  be made to the Specifications and the respective responsibilities of the Parties
  therefor. All Specifications and any changes thereto and other Engineering Changes
  agreed to by the Parties from time to time shall be in writing, dated and signed
  by the Parties. No change in the Specifications shall be implemented by RBC,
  whether initiated by RBC or requested by 3M, until the Parties have agreed in
  writing to such change, the implementation date of such change, and any increase
  to the price of Products to reflect additional costs, expenses or fees associated
  with such change. In the event of (i) a change to the Specifications requested
  by 3M, a governmental authority or as necessary or required to meet a change
  in the Laws or (ii) obsolescence of the Products or components needed to make
  the Products that are rendered obsolete by Engineering Changes, 3M shall bear
  RBC’s actual out-of-pocket cost of obsolete Products and components needed
  to make such Products, but not exceeding the quantity of Products and components
  needed to make such Products indicated in the then-current Firm Order. 

14.        
WARRANTIES: (a) RBC warrants at the time of Delivery and for the duration of
the warranty period stated in the applicable Subcontract (the “Warranty Period”)
that (i) all Products will strictly conform to the Specifications; (ii) all
Products will be free from any encumbrance or any defect in design (to the
extent the design was provided by RBC), materials, manufacture and workmanship;
(iii) all Products will have been manufactured and packaged (to the extent
packaged by RBC and not 3M) in accordance with all applicable Laws, all QSRs,
and the Quality Agreement; (iv) no Products will be misbranded or adulterated as
defined by the FDA or 

8 

similar regulatory bodies and all labelling information
provided by RBC to 3M is complete, accurate and in compliance with applicable
Laws. The foregoing warranties shall be void to the extent the Products are:
abused, damaged or adulterated after Delivery, whether by fault, negligence or
otherwise; or used or stored in a manner for which the Products were not
specifically labeled.

(b)        
In addition to 3M’s other remedies, 3M may reject any Products that fail to meet
the foregoing warranties (referred to herein as “Allegedly Non-Conforming
Products”), subject to the following: In the event 3M rejects Allegedly
Non-Conforming Products, RBC shall promptly replace such Allegedly
Non-Conforming Products. Even though RBC has replaced such Allegedly
Non-Conforming Products, RBC shall still have the right to inspect and test the
Allegedly Non-Conforming Products. In the event of a discrepancy between 3M’s
and RBC’s test results such that one Party’s results meet the warranties and the
other Party’s test results fail to meet the warranties, or there exists a
dispute over whether such failure is due (in whole or in part) to any warranty
voiding circumstance set forth in Section 14(a), the Parties shall cause an
independent testing laboratory agreeable to both RBC and 3M to perform
comparative tests and/or analyses of the Allegedly Non-Conforming Products. The
testing laboratory’s results shall be in writing and shall be final and binding
save for manifest error on the face of its report. Unless otherwise agreed to by
the Parties in writing, the costs associated with such testing and review shall
be borne by the Party against whom the testing laboratory rules. The testing
laboratory shall be required to enter into written undertakings of
confidentiality no less burdensome than set forth herein. If RBC or the testing
laboratory confirms the nonconformity of the Allegedly Non-Conforming Products,
3M will have paid or will pay for the Allegedly Non-Conforming Products in
accordance with the terms of this Agreement and 3M will have already received
replacement Product free of any additional charge. RBC shall have no further
obligations or liability (whether in contract, tort (including negligence,
strict liability in tort and breach of statutory duty), statute or otherwise) to
3M, other than its obligations of indemnification pursuant to Section 18(a), in
relation to such Allegedly Non-Conforming Products. Allegedly Non-Conforming
Products shall, at RBC’s option, be returned to RBC or disposed of by 3M. In the
event of any disposal of Allegedly Non-Conforming Products, 3M shall, if
requested by RBC, deliver to RBC an appropriate written confirmation of
disposal. The cost of return or disposal of Allegedly Non-Conforming Products
shall be borne by RBC. If the testing laboratory confirms that the Allegedly
Non-Conforming Products do in fact meet the warranties and are conforming, 3M
will have paid or will pay for such conforming Products, and will also pay for
the replacement Products that 3M will have already received, in accordance with
the terms of this Agreement.

(c)         RBC
further represents and warrants that as of the Effective Date RBC has not
received a written notice of infringement from a third Party. 

(d)         RBC
will use commercially reasonable efforts to obtain for 3M the benefit of all
warranties from RBC’s suppliers. RBC will use commercially reasonable efforts to
assist 3M in the prompt investigation of, and corrective action for, Product
complaints by 3M customers. 3M’s acceptance of Delivery, inspection, or payment
for any Products does not waive any of RBC’s warranties.

(e)         Each
Party hereby represents and warrants to the other Party that it has full
authority to enter into this Agreement, and there is no provision contained in
any other agreement to which it is a party that prohibits or restricts it from
entering into or performing under this Agreement. 

9 

OTHER THAN AS SPECIFICALLY SET FORTH IN THIS SECTION, NO
EXPRESS OR IMPLIED WARRANTIES ARE GIVEN BY EITHER PARTY UNDER THIS AGREEMENT,
INCLUDING WITH RESPECT TO (1) PRODUCT SOLD BY RBC AND PURCHASED BY 3M AND/OR ITS
AFFILIATES PURSUANT TO THIS AGREEMENT; (2) THE PERFORMANCE OR NONPERFORMANCE OF
THE PRODUCTS, INCLUDING BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE; OR (3) NONINGRINGEMENT OF
ANY THIRD PARTY PATENTS OR OTHER INTELLECTUAL PROPERTY RIGHTS. 

15.         3M
MATERIALS: 3M may provide materials to be used in making Products (“3M
Materials”). 3M owns all 3M Materials and will only be used by RBC to make
Products for 3M unless consented to in writing by 3M in each instance. RBC will
inspect all 3M Materials and promptly inform 3M of any non-compliance with
Specifications. RBC authorizes 3M to file any and all appropriate documentation
(including UCC financing statements) without RBC's signature to acknowledge 3M's
ownership interest in 3M Materials. RBC will also provide on request inventory
and other reports to account for 3M Materials. RBC (i) will keep all 3M
Materials, semi-finished and finished Products in a secure area and will use
commercially reasonable efforts to prevent them from being lost, destroyed or
damaged. Loss allowances for 3M Materials may be established by mutual written
agreement of the Parties. RBC will reimburse 3M for any losses by RBC of 3M
Materials in excess of those allowances. RBC shall not remove 3M Materials from
RBC’s facility prior to use of 3M Materials for making Products and RBC shall
return 3M Materials on 3M’s request or upon termination of this Agreement. If
this occurs, 3M will pay shipping costs and RBC will be responsible for all
other expenses.

16.         3M
EQUIPMENT: 3M may provide equipment for use in making Products (“3M
Equipment”). All 3M Equipment belongs to 3M, shall not be removed from RBC’s
facility other than by 3M and, unless consented to in writing by 3M, will only
be used by RBC to make Products for 3M. RBC authorizes 3M to file any and all
appropriate documentation (including UCC financing statements) without RBC's
signature to acknowledge 3M's ownership interest in 3M Equipment. RBC uses 3M
Equipment at its own risk and must make certain that 3M Equipment is in safe and
proper condition for the intended use. RBC shall not alter 3M Equipment without
3M’s written consent. RBC will keep all 3M Equipment in good condition,
reasonable wear excepted, and will use 3M Equipment only to provide Products to
3M. RBC assumes all risk of loss or damage to 3M Equipment. RBC will indemnify
and defend 3M against all claims arising out of RBC’s use of 3M Equipment. 3M
DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTIES REGARDING 3M EQUIPMENT, INCLUDING
BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR
PURPOSE. 3M is not a “merchant” of 3M Equipment under UCC 2-104(1). All
3M Equipment must be returned on 3M’s request or upon termination of this
Agreement, with 3M paying crating and shipping costs and RBC responsible for
other expenses. 

17.       TOOLING:
RBC may acquire tools exclusively to make Products for 3M pursuant to one or
more Subcontracts (“Tooling”). If 3M reimburses RBC for any Tooling, such
Tooling becomes 3M Equipment. Otherwise, RBC continues to own the Tooling but,
unless consented to in writing by 3M, RBC shall not use the Tooling for any
purpose other than the manufacture of Products for 3M. RBC will maintain Tooling
in good condition and will keep all Tooling for its lifetime or until it reaches
design cycle limits. 

10 

18.         INDEMNIFICATION:

(a)         RBC
Indemnification: RBC agrees to indemnify, defend and hold harmless 3M, its
affiliates and their respective directors, officers, employees, subcontractors
and agents (“Indemnitees”) from any and all claims, actions, demands, losses,
costs, expenses, damages and liabilities, including but not limited to
reasonable attorneys fees and other expenses of litigation, (hereinafter
“Indemnifiable Losses”) brought, asserted, commenced or pursued by any Third
Party (hereinafter “Third Party Claims”) to the extent such Third Party Claims
are based on property damage or sickness, bodily injury, personal injury or
death of any person relating to or arising from (a) the manufacture of any
Products or components thereof by or for RBC, its affiliates or its Indemnitees;
or (b) breach by RBC or its Indemnitees of the express warranties under this
Agreement; or (c) the design, manufacture or use of the Reader by RBC or its
Indemnitees; or (d) the handling, packaging, labeling, storage, treatment,
removal, transportation, and disposal by RBC or its Indemnitees of any waste
material generated in the manufacture of Products under any environmental laws,
including the Comprehensive Environmental Response, Compensation and Liability
Act (42 U.S.C. Sections 9601 et seq. as amended (“CERCLA”)), the Hazardous
Materials Transportation Act (49 U.S.C. Sections 5101 et seq.), the Resource
Conservation and Recovery Act (42 U.S.C. Sections 6901 et seq. (“RCRA”)), or any
other current or future federal, state or local environmental laws of similar
effect; or (e) gross negligence or willful misconduct of RBC in its performance
or the performance of its affiliates under this Agreement or failure of RBC to
perform any of its obligations under this Agreement. RBC’s obligations to
indemnify 3M hereunder shall not apply to the extent any such Indemnifiable
Losses arise out of or are based on the inactions or actions of 3M, its
affiliates or its Indemnitees for which 3M is obligated to indemnify RBC under
Section 18(b). 

In the case of a third party claim of patent infringement or
misappropriation of a third party’s intellectual property rights based on the
manufacture, use, sale, offer for sale or importation of Products, in addition
to 3M’s other rights and remedies, the terms of Section 2(e) shall apply. In
addition, the Parties shall bear responsibility for, and shall cooperate with
each with respect to, handling such third party claim in accordance with Article
8.8 of the JDA.

(b) 3M Indemnification: 3M agrees to indemnify, defend and hold
harmless RBC, its affiliates and their respective Indemnitees from any and all
Third Party Claims for Indemnifiable Losses against RBC or any of its
Indemnitees to the extent such Third Party Claims are based on property damage
or sickness, bodily injury, personal injury or death of any person relating to
or arising from (a) the marketing, sale, distribution or disposal of any
Products or components thereof by or for 3M, its affiliates or its Indemnitees;
or (b) breach by 3M or its affiliates or Indemnitees of the express warranties
under this Agreement; or (c) gross negligence or willful misconduct of 3M in its
performance or the performance of its affiliates under this Agreement or failure
of 3M to perform any of its obligations under this Agreement. 3M’s obligations
to indemnify RBC hereunder shall not apply to the extent any such Indemnifiable
Losses arise out of or are based on the inactions or actions of RBC or its
Indemnitees for which RBC is obligated to indemnify 3M under Section 18(a).

(c) Scope of Indemnification: The parties agree that the
indemnities stated in this section should be construed and applied in favor of
indemnification. The Parties agree that the indemnities (a) apply only to
Indemnifiable Losses brought, asserted, commenced or pursued by any 

11 

Third Party, and (b) will not apply to claims between the
Parties or their affiliates arising out of or connected to this Agreement.

(d) Procedure for Indemnification: The following subparagraphs
of this paragraph 18(d) lay out the procedure for indemnification. 

(i) Notice of Claim: If either 3M or
RBC shall receive notice of any Third Party Claim, with respect to which the
other Party is or may be obligated to make a payment in accordance with this
Article 18 (hereinafter an “Indemnity Payment”), it (the “Indemnified Party”)
shall give such other Party (the “Indemnifying Party”) prompt notice thereof
(including any pleadings relating thereto) after becoming aware of such Third
Party Claim, specifying in such reasonable detail as is known to it, the nature
of such Third Party Claim and the amount or estimated amount thereof to the
extent then feasible (which estimate shall not be conclusive of the final amount
of such claim); provided, however, that the failure of the Indemnified Party to
give notice as provided in this paragraph shall not relieve the Indemnifying
Party of its indemnification obligations under this Article, except to the
extent that the Indemnifying Party is actually prejudiced by such failure to
give notice. 

(ii) Defense of Claims. For any Third
Party Claim concerning which notice is required to be given, and, in fact,
given, under paragraph 18(d)(i) of this Article, the Indemnifying Party shall
defend in a timely manner, to the extent permitted by law, such Third Party
Claim through counsel appointed by the Indemnifying Party and reasonably
acceptable to the Indemnified Party. The Indemnified Party shall have the right
to participate in the defense of the Third Party Claim by employing separate
counsel at its own expense, provided that the Parties enter into a Joint Defense
Agreement or Joint Representation and Defense Agreement, as appropriate. 

(iii) Denial of Obligation or Failure
to Defend: If a Party responds to a notice of a Third Party Claim by denying its
obligation to indemnify the person or entity claiming a right of defense and
indemnification under this Agreement (“Indemnification Claimant”), or if the
Indemnifying Party fails to defend in a timely manner, the Indemnified Party
shall be entitled to defend such Third Party Claim through counsel appointed by
it. In addition, if it is later determined, through procedures referenced in
Article 25 of this Agreement, or agreement of the Parties, that said Party
wrongfully denied such claim, or the Indemnifying Party failed to timely defend,
then the Indemnifying Party shall (a) reimburse the Indemnified Party for all
costs and expenses (other than salaries of officers and employees) incurred
reasonably by the Indemnified Party in connection with its defense of such Third
Party Claim, and (b) be estopped from challenging a judgment, order, settlement,
compromise, or consent judgment resolving the Third Party Claim entered into in
good faith by the Indemnified Party (if such claim has been resolved prior to
the conclusion of the proceeding between the Indemnified Party and Indemnifying
Party). An Indemnifying Party, after initially rejecting a claim for defense or
indemnification by an Indemnification Claimant, may defend and indemnify the
Indemnification Claimant, at any time prior to the resolution of said Third
Party Claim, for such claim, provided that (a) the Indemnifying Party reimburses
the Indemnified 

12 

Party for all costs and expenses (other
than salaries of officers and employees) incurred reasonably by the Indemnified
Party in connection with its defense of such Third Party Claim up to the time
the Indemnifying Party assumes control of the defense of such claim (including
costs incurred in the transition of the defense from the Indemnified Party to
the Indemnifying Party) and (b) the assumption of the defense of the Third Party
Claim will not prejudice or cause harm to the Indemnified Party. 

(iv) Release: With respect to any Third
Party Claim relating to any matter subject to a claim for indemnification
hereunder, no Party shall enter into any compromise or settlement or consent to
the entry of any judgment which (a) does not include as a term thereof the
giving by the third party of a release to the Indemnified Party from all further
liability concerning such Third Party Claim on terms no less favorable than
those obtained by the party entering into such compromise, settlement or consent
or (b) imposes any obligation on the Indemnified Party without said Indemnified
Party’s written consent (such consent not to be unreasonably withheld), except
an obligation to pay money which the Indemnifying Party has agreed to pay on
behalf of the Indemnified Party. In the event that an Indemnified Party enters
into any such compromise, settlement or consent without the written consent of
the Indemnifying Party (other than as contemplated by this paragraph 18(d)(iv)
the entry of such compromise, settlement or consent shall relieve the
Indemnifying Party of its indemnification obligation related to the claims
underlying such compromise, settlement or consent. 

(v) Payments: Upon final judgment,
determination, settlement or compromise of any Third Party Claim, and unless
otherwise agreed by the Parties in writing, the Indemnifying Party shall pay
promptly on behalf of the Indemnified Party, or to the Indemnified Party in
reimbursement of any amount theretofore required to be paid by it, the amount so
determined by final judgment, determination, settlement or compromise. Upon the
payment in full by the Indemnifying Party of such amount, the Indemnifying Party
shall succeed to the rights of such Indemnified Party to the extent not waived
in settlement, against the third party who made such Third Party Claim and any
other person who may have been liable to the Indemnified Party with respect to
the indemnified matter. 

(vi) Cooperation: In connection with
defending against Third Party Claims, the Parties shall cooperate with and
assist each other by making available all employees, books, records,
communications, documents, items and matters within their knowledge, possession
or control that are necessary, appropriate or reasonably deemed relevant with
respect to defense of such claims; provided, however, that nothing in this
Article 12 shall be deemed to require the waiver of any privilege, including the
attorney-client privilege, or protection afforded by the attorney work product
doctrine. In addition, regardless of the Party actually defending a Third Party
Claim for which there is an indemnity obligation under Sections 18(a) or 18(b)
of this Article, the Parties shall give each other regular status reports
relating to such action with detail sufficient to permit the other Party to
assert and protect its rights and obligations under this Agreement. 

13 

(vii) Survival: The provisions of this
Section 18(d) shall survive in perpetuity and shall be the exclusive procedures
for any claims subject to the provisions of Sections 18(a) or 18(b) above. 

19.         INSURANCE:
3M and RBC shall maintain liability insurance in an amount and for a time
period which is reasonable and customary in the medical device industry for
companies of comparable size and activities at the respective place of business
of each Party, intended to cover the liability assumed by that Party under this
Agreement, provided that each Party may be self-insured for at least a portion
of such amount. During the Term, RBC will obtain and maintain comprehensive
general liability (“CGL”) insurance (including premises - operations, products,
completed operations and contractual liability) with coverage of [***]
 per occurrence, employer’s liability coverage of [***] per
occurrence and worker’s compensation as required by applicable Laws. The CGL
policy must name 3M as an additional insured, with all coverage primary for 3M
regardless of other 3M insurance. 3M does not represent that this is sufficient
coverage for RBC. Each Party will provide the other certificates of insurance
within ten (10) days of a written request from the other Party showing
compliance with the insurance specifications. Each Party must keep the
certificates current and must in any event file a new certificate each year
while this Agreement is in effect. Neither Party’s failure to require or to
insist upon certificates or other evidence of insurance, nor either Party’s
acceptance of a certificate or other evidence of insurance showing a variance
from the specified coverage changes each Party’s obligation to maintain the
required insurance. 

20.        
LIMITATION OF LIABILITY: NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY
FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES RESULTING FROM OR IN
ANY WAY RELATED TO PRODUCT, THIS AGREEMENT OR THE TERMINATION OF THIS AGREEMENT.
THIS LIMITATION APPLIES REGARDLESS OF LEGAL OR EQUITABLE THEORY.

21.         CONFIDENTIAL
INFORMATION: 

(a) During the Term, either Party may receive information, in
whatever form, that, subject to Section 21(b), the disclosing Party considers to
be confidential and that is not generally known to the public relating to: (1)
the development and design of Products, including but not limited to Product
formulations, Product composition, research and development and Product
specifications; (2) the manufacturing and production of Products, including but
not limited to manufacturing techniques, production equipment, and rates and
quantities of production; (3) other aspects of either Party’s business relating
to Products including, without limitation, marketing, sales, customer
information and non-public financial information (all collectively referred to
as “Confidential Information”). Confidential Information also includes the
existence of this Agreement and all of this Agreement’s terms. During the Term,
except as provided under Section 23 or as otherwise consented to in writing by
the disclosing Party, each Party will keep secret all Confidential Information
of the other Party, using such care as each Party uses in maintaining the
confidentiality of its own secret information, but no less than a reasonable
degree of care, and will use Confidential Information of the other Party only as
is necessary to perform its obligations under this Agreement. Both Parties will
assure that its employees, agents and contractors abide by these confidentiality
obligations. Upon written request of the disclosing Party or at the expiration
or earlier termination of this Agreement, each Party will, at the discretion of
the disclosing Party, either destroy or return to the disclosing Party all
tangible 

14 

materials that are or contain the disclosing Party’s
Confidential Information. Any destruction of Confidential Information of the
disclosing Party pursuant to the foregoing shall be promptly confirmed by a
written certificate executed by an authorized officer of the receiving Party.
The foregoing obligations shall remain in force until five (5) years following
expiration or termination of this Agreement, unless disclosed pursuant to
Section 23(d).

(b) Confidential Information does not include information that
is: (1) published in any publication or otherwise is or becomes generally
available to the public, other than as a result of a breach of this Agreement;
(2) known to the receiving Party prior to its receipt from the other Party as
evidenced by the receiving Party’s contemporaneous written records; (3)
available to the receiving Party from another source without any breach of any
agreement or violation of any law; or (4) is independently developed by the
receiving Party without access to or use of the Confidential Information of the
disclosing Party, as evidenced by the receiving Party’s contemporaneous written
records. 

(c) If a Party is required by judicial or administrative
process or by governmental laws or regulations or other legal requirements,
including filings with the U.S. Securities Exchange Commission and comparable
governmental agencies applicable to the Parties, to disclose Confidential
Information of the other Party, the Party that is so required to disclose the
Confidential Information will: (1) promptly notify the other Party with
sufficient advance notice to allow the other Party the opportunity to oppose
such process; and (2) seek to have the third party treat the information
confidentially, including seeking confidential treatment of such Confidential
Information, to the extent legally permissible.

22.         INTELLECTUAL
PROPERTY AND DEVELOPMENTS: The following shall apply to RBC Developments
that are conceived after expiration or termination of, or are otherwise not
covered by, the JDA:

 (a) “RBC Developments” are all analyses, specifications,
  proposals, reports or other information, data or documents (in raw, preliminary
  or final form) and all inventions, discoveries and improvements, whether or not
  patentable, conceived by RBC, its employees and agents and resulting from the
  performance of RBC's obligations under this Agreement. RBC will promptly notify
  3M of all RBC Developments and will (at 3M’s request) pursue protection of RBC
  Developments with patent or other intellectual property filings for RBC
  Developments throughout the world.

(b) Nothing in this Agreement grants 3M or any of its
affiliates rights to RBC Developments, except as follows: (i) if RBC, its
employees or agents conceive of a RBC Development using 3M Confidential
Information (which Confidential Information, if written, has been marked as
confidential or proprietary, or, if disclosed orally or visually has been
confirmed in writing as confidential or proprietary within thirty (30) days
after the first disclosure), as shown by contemporaneous written records, RBC
hereby grants to 3M or its designated affiliate a non-exclusive, fully paid-up,
permanent, transferable, royalty-free license, with the right to sublicense, to
make, have made, import, use, offer for sale and sell any product using that RBC
Development; and (ii) if 3M provides payment or other consideration to RBC to
create a RBC Development and the Parties acknowledge that consideration and its
purpose in writing, RBC hereby agrees to grant to 3M or its designated affiliate
a license as provided under article 23 to all rights and interests in that RBC
Development.

15 

23.         TECHNOLOGY
TRANSFER AND LICENSE:

(a) Subject to the terms and conditions of the Agreement, RBC
hereby grants 3M or its designated affiliate an exclusive license solely to
make, have made, use, sell, offer to sell, import, buy, or transfer the Products
other than the Products defined in Exhibit A-1 hereto, and a non-exclusive
license solely to make, have made, use, sell, offer to sell, import, buy or
transfer the Product defined in Exhibit A-1 hereto, for the detection of Targets
(“License”). Notwithstanding the foregoing, the License to make or have made
Products shall not be effective except upon termination of this Agreement by 3M
pursuant to Section 2(b) for RBC’s breach, or 4(d) for Supply Failure, or upon
non-renewal of this Agreement as provided in Section 2(d). In the event the
License to make or have made Products becomes effective, RBC shall thereupon
provide (i) to 3M a copy of all data, or information generated during RBC’s
performance of this Agreement that is reasonably necessary to make and have made
Product, including but not limited to the Escrow Materials, and (ii) reasonable
assistance required to enable 3M to manufacture Product for itself or through a
third party manufacturer; provided, however, that any such data, know-how,
technology, or information that is Confidential Information shall continue to be
the Confidential Information of RBC, but may be disclosed by 3M to bona fide
third party manufacturers pursuant to a written agreement containing
confidentiality and non-use provisions no less restrictive than those set forth
herein. 3M shall indemnify RBC under the same terms as paragraph 18(b) for any
Indemnifiable Losses arising from the manufacture of any Products by or for 3M
under the License granted in this paragraph 23. 

(b) The License is a worldwide, royalty bearing license, including
  a right to sublicense to 3M or its designated affiliate, to all intellectual
  property owned by RBC (e.g., patents, patent applications, manufacturing know-how)
  necessary or useful for the manufacture of the Products. The earned royalty
  rate payable to RBC and additional minimum terms of the License will be set
  forth in the applicable Subcontract, provided that such terms may be modified
  or other terms may be added as mutually agreed upon in writing by 3M and RBC
  and provided further that no such royalty shall be payable by 3M or its designated
  affiliate so long as RBC is manufacturing the Product to which the royalty would
  otherwise apply. In the event the parties fail to negotiate a Subcontract for
  Product for detection of a specified Target, the terms of Articles 7 and 9 of
  the JDA shall apply. The License shall terminate upon: termination of this Agreement
  by RBC pursuant to Section 2(b) for 3M’s breach; termination of this Agreement
  by 3M after the first three years of the Term pursuant to Section 2(a); or expiration
  of the Term or any renewal thereof. If the License to make or have made becomes
  effective as provided in Section 23(a), the License shall terminate in accordance
  with the terms of the applicable Subcontract. 

(c) In the event the License to make or have made becomes
effective as provided in Section 23(a) (i.e., 3M becomes the manufacturer of
Products or elects to move the manufacture of Products to a third party
following termination of this Agreement by 3M pursuant to Section 2(b) or 4(d)
or upon non-renewal of this Agreement as provided in Section 2(d)), the Parties
will cooperate in the transition of manufacturing, including the transfer of
Escrow Materials sufficient to enable 3M or another supplier to manufacture the
Products. RBC also agrees to assist in a seamless transition of supply chain
requirements, including the continuation of manufacturing until either 3M or the
designated third party are capable of manufacturing demanded volumes, or to
build no less than 3-months of inventory to assist in the transition in
manufacturing. 3M will pay for all reasonable costs incurred by RBC in the
one-time transfer of manufacturing technology and ongoing support for a
reasonable time, not longer than six (6) 

16 

months. If 3M requests additional assistance in connection with
the transferred manufacturing technology beyond that set forth above, 3M will
request the assistance in writing and pay RBC for all such assistance. 

(d) RBC shall enter into an escrow agreement ("Escrow
Agreement") with a mutually agreeable escrow agent ("Escrow Agent"), such Escrow
Agreement providing for the deposit of one complete copy of all materials
relating to the manufacture of Products, including all relevant written
materials (e.g., operating manuals, written processes, process conditions,
information relating to RBC’s sources of component or raw materials and related
information) and all machine-readable materials (e.g., software) sufficient to
enable 3M to manufacture Product or to have Product manufactured for 3M (“Escrow
Materials”). Once every year following the deposit of the Escrow Materials, 3M
shall have the right, but not the obligation, to audit such Escrow Materials
through an independent third party auditor reasonably agreeable to both Parties,
upon prior written notice to RBC. The scope of such audit shall be limited to
ensuring that the obligations of this Section 23(d) have been met. Any such
audit shall take place at the premises of the Escrow Agent. RBC shall be
entitled to have at least one employee of its choosing present at all times
during any said audit. If the Escrow Materials are found to be inaccurate or
incomplete, RBC shall supplement the Escrow Material within ten (10) business
days to restore accuracy and completeness, and RBC shall bear the cost and
expense of supplementing the Escrow Material. Otherwise, 3M shall bear the
expense of any such audit. RBC represents and warrants to 3M that the Escrow
Materials shall be kept current and complete, and shall be updated by or on
behalf of RBC from time to time and in no event more than sixty (60) days after
RBC has made one or more material modifications to any of the Escrow Materials.
Upon termination of this Agreement by 3M pursuant to Section 2(b) or 4(d) or
upon non-renewal of this Agreement as provided in Section 2(d) (the “Triggering
Event”), RBC agrees that (i) 3M or its designated affiliate is entitled to
possession of the Escrow Materials unless RBC is disputing the basis for the
occurrence of the Triggering Event, and (ii) 3M may give written notice to both
RBC and the Escrow Agent requesting release of the Escrow Materials. The Escrow
Agent shall release and make the Escrow Materials available to 3M or its
designated affiliate on the earlier of (1) the Escrow Agent’s receipt of written
notice from RBC agreeing to and authorizing the release or (2) the date that is
thirty (30) days after the Escrow Agent’s receipt of the written notice from 3M
under clause (ii) above, unless, during such 30-day period, the Escrow Agent
receives written notice from RBC disputing the basis for the occurrence of the
Triggering Event. If RBC disputes that a Triggering Event has rightfully
occurred, RBC may initiate the Dispute Resolution procedures set forth in
Section 26 and RBC shall give written notice of such dispute to both the Escrow
Agent and 3M within thirty (30) days after 3M gives written notice under clause
(ii) above. If the Escrow Agent receives such notice of dispute from RBC within
such 30-day period, the Escrow Agent shall release and make the Escrow Materials
available to 3M on the date that is sixty (60) days after the Escrow Agent’s
receipt of the written notice from 3M under clause (ii) above; provided,
however, that the Escrow Agent shall not release or make the Escrow Materials
available to 3M if, prior to the expiration of such 60-day period, the Parties
jointly give written notice to the Escrow Agent that the Escrow Materials should
not be released. If RBC disputes the release of the Escrow Materials and it is
finally determined that the Escrow Materials should not have been released to 3M
hereunder, 3M’s sole responsibility shall be to cease any further use of the
Escrow Materials (and cause any third party to cease further use of the Escrow
Materials) and to return all copies of the Escrow Materials to the Escrow Agent.
All Escrow Materials shall be the Confidential Information of RBC and use and
disclosure of the 

17 

Escrow Materials shall be subject to the provisions of Section
21. For the sake of clarity, 3M or its designated affiliate shall have the right
to use or disclose the Escrow Materials solely to make or have made Products
pursuant to the License under Section 23(a) and shall only disclose the Escrow
Materials to third party manufacturers that are bound by obligations of
confidentiality at least as stringent as those set forth herein. The agreement
with the Escrow Agent shall provide that all Escrow Materials shall be returned
to RBC and the escrow agreement shall be terminated within thirty (30) days
after termination of this Agreement for any reason other than a Triggering
Event, as certified in writing jointly by both Parties. Except as otherwise
stated herein, all costs and expenses associated with the escrow of the Escrow
Materials, including the costs of the Escrow Agent, shall be paid by RBC. 

24.         NOTICES:
Any notice permitted or required under this Agreement must be in writing and
personally delivered, including via any internationally recognized overnight
service: (a) to 3M at: 3M Sourcing Operations, Building 0216-02N-007, 3M Center,
St. Paul, Minnesota USA 55144-1000, Attention: Vice President, with a copy to 3M
Medical Division, 3M Center Building 275-5E-01, St. Paul MN 55144 Attention:
Supply Director, and (b) to RBC at: 100-8900 Glenlyon Parkway, Burnaby, B.C.,
Canada, Attention: Vice President, Business Development,. Notice of any change
in a Party's address will be given as stated above. 

25.         GOVERNING
  LAW: DISPUTE RESOLUTION: Disputes arising between the Parties relating to
  the making or performance of this Agreement shall be resolved in the following
  order of preference: (a) by good faith negotiation between executives of 3M
  and RBC who have authority to fully and finally resolve the dispute; and then
  (b) by non-binding mediation at a location acceptable to the Parties using a
  neutral mediator having experience with the industry (with the costs therefore
  shared equally). All negotiations pursuant to this clause shall be treated as
  Confidential Information in accordance with the provisions of Article 21 of
  this Agreement. Finally, as a last resort, either Party may commence litigation.
  Each Party consents to the New York courts' personal jurisdiction. Any questions,
  claims, disputes, remedies or procedural matters shall be governed exclusively
  by the laws of the State New York and of the United States of America, without
  regard to its principles of conflicts of law. The exclusive venue for any and
  all litigation relating to this Agreement shall be in the city of New York in
  the state or federal court having subject matter jurisdiction. The foregoing
  notwithstanding, nothing in this Agreement shall preclude a Party from taking
  whatever actions are necessary to prevent irreparable harm to its interests.

26.         GENERAL:
Neither this Agreement nor any right or obligation hereunder shall be
assignable by a Party without the prior written consent of the other Party and
any purported assignment without such consent shall be void; provided that 3M or
RBC may assign this Agreement without consent of the other Party to a successor
of all or substantially all of 3M’s or RBC’s (as the case may be) assets, stock
or business to which this Agreement relates (whether by sale, acquisition,
merger, reorganization, recapitalization, operation of law or otherwise). No
assignment shall relieve any Party of responsibility for the performance of any
accrued obligation which such Party then has hereunder. The Parties are
independent contractors and neither can make any commitments for the other. The
employees of a Party are not employees of the other. Either Party may waive a
breach without waiving performance later. This Agreement supersedes all prior
agreements concerning Subcontracts, except for any prior confidentiality
agreement between the parties. This Agreement may be executed in any number of
counterparts, each of which when delivered, either in original or facsimile
form, shall be deemed to be an 

18 

original and all of which together shall constitute one and the
same document. 

27.         EVENTS
OF EXCUSED PERFORMANCE: Neither 3M nor RBC shall be considered in default or
be liable to the other Party for any delay in performance or non-performance
caused by circumstances beyond the reasonable control of such Party and not
related to its fault or negligence, including but not limited to acts of God,
explosion, fire, flood, earthquake, war whether declared or not, accident,
sabotage, transportation, strike, labor disturbance or interference, order or
decrees of any court or action of governmental authority or shortages in or an
inability to procure materials; provided, however, that diligent efforts are
made to resume performance as quickly as possible. Delays involving governmental
authorities shall include but are not limited to, withdrawal, suspension or
delays in regulatory approval of a Product by a competent authority or other
causes, whether similar or dissimilar to those specified. 

28.         GOVERNMENT
CONTRACTS: To the extent required by applicable U.S. federal Laws, the
following Federal Acquisition Regulation clauses (“FARs”) and Department of
Defense FAR Supplement clauses (“DFARs”), as in effect on an Order’s date, are
hereby incorporated: (a) FAR 52.219 -8, Utilization of Small Business Concerns;
(b) FAR 52.219 -9, Small Business Subcontracting Plan; (c) FAR 52.222 -26, Equal
Opportunity; (d) FAR 52.222-35, Equal Opportunity for Special Disabled Veterans,
Veterans of the Vietnam Era, and Other Eligible Veterans; (e) FAR 52.222 -36,
Affirmative Action for Workers with Disabilities; (f) FAR 52.222 -39,
Notification of Employee Rights Concerning Payment of Union Dues or Fees; (g)
FAR 52.222 -41, Service Contract Act of 1965, as amended; (h) FAR 52.247 -64,
Preference for Privately Owned U.S.-Flag Commercial Vessels; (i) DFARS 252.225
-7014, Preference for Domestic Specialty Metals, Alternate I; (j) DFARS 252.247
-7023, Transportation of Supplies by Sea; and (k) DFARS 252.247 -7024,
Notification of Transportation of Supplies by Sea. Prior to RBC filling any
Purchase Order under any Subcontract, RBC certifies that, to the extent
applicable and required: (i) it will comply with FAR 52.203 -12, Limitation on
Payments to Influence Certain Federal Transactions, and FAR 52.222 -21,
Prohibition of Segregated Facilities; (ii) if RBC participated in a previous
contract or subcontract subject to the Equal Opportunity clause referenced
above, it will have filed all required compliance reports; (iii) before any
subcontracts are awarded, it will obtain representations signed by proposed
subcontractors indicating submission of required compliance reports; (iv) it
will have developed and have on file at each establishment, affirmative action
compliance programs required by the rules and regulations of the Secretary of
Labor (41 CFR 60-1 and 60-2); and (v) neither RBC nor any of its principals will
have been debarred, suspended, or proposed for debarment, from the award of
contracts by the U.S. government. If RBC cannot provide any of these
certifications, or subsequently becomes aware that any certification is
incorrect for any reason, RBC must immediately notify 3M in writing.

	ACCEPTED AND AGREED TO: 	  
	 	 
	3M COMPANY 	RESPONSE BIOMEDICAL CORPORATION 
	 	 
	  	  
	By: /s/ [Authorized
      Signatory]                                           
       	By: /s/ Bill
      Radvak                                                   
       
	 	 
	Title: ______________________________________	Title: “President &
      CEO”                                       
       

19 

EXHIBIT A- 1 

SUBCONTRACT TO 

MANUFACTURING AND SUPPLY AGREEMENT 

MEDICAL DIVISION

(Reader and Accessories) 

This Subcontract dated November 30, 2006 (“Subcontract
Effective Date”) is between 3M Company, acting through its Medical Division
(“3M”) and Response Biomedical Corp. (“RBC”) and is made pursuant to the
Manufacturing and Supply Agreement dated November 30, 2006 (“Agreement”) between
3M and RBC. All capitalized terms used but not defined in this Subcontract have
the meanings given in the Agreement. 

1.          
SCOPE: The Agreement governs this Subcontract except for any amendments
described below. If any term or condition in this Subcontract conflicts with the
Agreement, this Subcontract shall govern. The Products covered by this
Subcontract, including their Specifications, are listed in Schedule 1.

2.          
SUBCONTRACT TERM: This Subcontract begins on the Subcontract Effective Date
and continues for [***] years, unless terminated earlier as provided
for herein (the “Subcontract Term”). The Subcontract Term may be renewed for
additional [***]  year periods upon the mutual written agreement of
RBC and 3M. 3M shall have the right to terminate this Agreement in whole or in
part upon  days prior written notice to RBC at any time[***] after the
first  years of the Term.[***]

3.          
PRODUCT; EXCLUSIVITY: “Product” means the Reader and accessories listed on
and further defined by the Specifications referenced in Schedule 1 hereto.
During the Subcontract Term, (a) 3M and its affiliates shall purchase
exclusively from RBC all of their commercial sale requirements for the
3MTM Rapid Detect Reader Products listed on Schedule 1 and shall
purchase non-exclusively from RBC the Accessory Products listed on Schedule 1;
and (b) RBC will supply all Products listed on Schedule 1 non-exclusively to 3M
and its affiliates. 

4.          
  FORECAST; LEAD TIME: The first three (3) months of each Forecast shall be
  binding on 3M and shall constitute a Firm Order. 3M shall be entitled to revise
  the Forecast for the second three (3) months of each Forecast, but the quantity
  of Products may not be increased by more than . [***] The Forecast
  for the last six (6) months may be revised by 3M without restriction. The lead-time
  for product shall be ninety (90) days.

5.          
CAPACITY COMMITMENT: RBC will provide capacity information regarding the
Product to the JSC so that the JSC can discuss it on a quarterly basis. This
capacity information is shared with 3M for 3M’s planning purposes only.

6.          
PRICES: Product prices are listed in Schedule One. Section 5 of the
Agreement shall apply to the pricing in this Subcontract.

7.          
WARRANTY PERIOD: The warranty period for Products shall be as stated in
the Service Plan to be attached as Schedule 3.

8.          
PARTS; SERVICE PLAN; TECHNICAL SUPPORT: RBC will provide to 3M technical
support for Products as set forth on Schedule Two to this Subcontract. 

1 

9.          
LICENSE: In the event the license to make or have made Products contemplated
in Section 23 of the Agreement goes into effect under the terms of Section 23(a)
of the Agreement, the earned royalty rate and other minimum terms for such
license to Products covered by this Subcontract will be as set out in Schedule 2
hereto, provided that such terms may be modified or other terms may be added as
mutually agreed upon in writing by 3M and RBC.

10.         COUNTERPARTS:
This Subcontract may be executed in any number of counterparts, each of
which when delivered, either in original or facsimile form, shall be deemed to
be an original and all of which together shall constitute one and the same
document. 

	ACCEPTED AND AGREED TO: 	 
	 	 
	3M COMPANY 	RESPONSE BIOMEDICAL CORPORATION 
	  	 
	 	 
	By: /s/ [Authorized Signatory]                                           
       	By: /s/ Bill Radvak                                                   
       
	 	 
	Title: ______________________________________	Title: “President & CEO”                                       
       

2 

Schedule One 

To 

Exhibit A-1 

Products, Specifications and Prices

I. Products and Specifications: Products shall mean the Reader
Product and the Accessory Products as further defined by the below referenced
Specifications.

	Product 	Specification 
	3MTM
      Rapid Detect Reader: 	 
    
	Accessories: 	 
    
	         
      1. Dot Matrix Printer, 120VAC 	 
    
	         
      2. Dot Matrix Printer, CE, 230VAC 	 
    
	         
      3. Bar Code Wand Scanner 	 
    
	         
      4. Reader to Reader Serial Cable 	 
    

II. Prices: The following Prices shall apply to Products:

	Product 	Part/Catalogue # 	Price 
	3MTM Rapid Detect Reader: 	91001 	 [***] 
	Accessories: 	 	 
    
	         
      1. Dot Matrix Printer, 120VAC 	RA 3030 	 [***] 
	         
      2. Dot Matrix Printer, CE, 230VAC 	RA 3047 	 [***] 
	         
      3. Bar Code Wand Scanner 	RA 3035 	 [***] 
	         
      4. Reader to Reader Serial Cable 	RA 3046 	 [***] 

3 

Schedule Two 

To 

Exhibit A-1 

License Terms 

1.          
Royalty 

3M or its designee shall pay a royalty of  per Net
Unit Sale of the 3M [***] TM Rapid Detect Reader, the manufacture or
sale of which infringes a claim in an unexpired patent [***] within
Sponsored Rights or Background Rights owned or controlled by RBC (as those terms
are defined in the JDA) in the country where 3MTM Rapid Detect Reader
is made or sold.

“Net Unit Sale” means a Reader manufactured and shipped
for commercial use by a non-affiliated third party. Se1ling, leasing, lending,
consigning, or an other activity by means of which a third party acquires the
right to possession or use of a Reader shall be included in Net Unit
Sales. 

2.          
Sublicenses 

3M or its designee shall have the right to sublicense to its
affiliates. 3M will unconditionally guarantee the performance of any such
Affiliates hereunder as if they were signatories to the license to the extent
the performance or lack of performance is a breach of the license. A breach by
any such affiliate of any such obligation shall constitute a breach by 3M of the
license.

The license grant also includes the right for any customers
(ultimate or in privity or other) of 3M, its designee, or its Affiliates to use
and/or sell (for further use or resale) the 3MTM Rapid Detect Reader
so made. 

3.          
Reports and Payment 

3M shall deliver to RBC within sixty (60) days after the end of
each calendar quarter a written report showing its computation of royalties due
under the license based on the number of units sold by 3M and its affiliates and
its sublicensees during such calendar quarter.

4.          
Records, Audit 

3M shall keep, and shall require all affiliates and
sublicensees to keep, full, true and accurate books of accounts and other
records containing all information and data which may be necessary to ascertain
and verify the royalties payable hereunder for a period of three (3) years after
the date such royalties became payable. During the term of this Agreement after
the first commercial sale of Subject Product and for a period of one year
following termination of this Agreement, RBC shall have the right from time to
time (not to exceed once during each calendar year) to have an independent firm
of accountants (i.e., a certified public accountant or like person 

4 

reasonably acceptable to 3M) inspect such books, records and
supporting data, provided such shall not cover such records for more than the
preceding three (3) years. Such independent firm of accountants shall perform
these audits at RBC’s expense upon reasonable prior notice and during 3M’s
regular business hours, and shall agree as a condition to such audit to maintain
the confidentiality of all information of 3M disclosed or observed in connection
with such audit and to disclose to RBC only whether 3M has complied with its
obligations under this Agreement with respect to the accuracy of the royalty
statements and payments. If the result of such audit demonstrates an
underpayment to RBC of 5% or more, 3M shall pay the full amount of the
underpayment and for the reasonable costs of such audit. 

5.          
Assignment 

The license granted shall be binding upon and inure to the
benefit of the successors in interest of the respective parties. Except as
otherwise provided in the license, neither the license nor any of the rights or
obligations thereunder may be assigned by either Party without the prior written
consent of the other Party, except either Party may assign the license or any of
the rights or obligations hereunder to an affiliate or to a Third Party with
which a Party may merge or consolidate, or to which it may transfer all or
substantially all of its assets to which the license relates, without obtaining
the prior written consent of the other Party. 

6.          
Competitive Activity 

The license shall provide for the enforcement by either Party
of Intellectual Property Rights granted under the license. 

The license shall provide a mechanism for reduction of royalty
in at least the following circumstances: 

	 	(a) 	
      During any period wherein 3M or its designee is
      prosecuting any legal action to enforce Intellectual Property Rights
      granted under the license,  [***] with respect to any country in which the legal action is
  being prosecuted.

	 	 	 

	 	
      (b) 
	
      If any third party shall make, use, sell, offer for sale
      or import 3MTM Rapid DetectReader in any country in which RBC
      has an actionable right against such third party, and
    [***]

	 	 	 
	 		
      with respect to such country until any such activity in
      such country has ceased.

7.          
Termination 

The license shall terminate on the happening of one of the
following events: 

5 

	 	(a) 	
      If not terminated sooner, the Agreement shall terminate
      with the expiration of the last to expire of an issued patent in the
      Intellectual Property Rights;

	 	(b) 	
      3M or its designee shall have the right to terminate the
      license agreement in its entirety or with respect to any country or with
      respect to any patent application or patent in any country by giving three
      (3) months prior written notice,

	 	(c) 	
      default by either Party.

 

 

 

 

6 

Schedule Three 

To 

Exhibit A-1 

Service Plan 

[To be added by amendment] 

 

 

 

 

 

7 

EXHIBIT A- 2 

SUBCONTRACT TO 

MANUFACTURING AND SUPPLY AGREEMENT 

MEDICAL DIVISION

(Cartridge for Staph aureus) 

This Subcontract dated November 30, 2006 (“Subcontract
Effective Date”) is between 3M Company acting through its Medical Division
(“3M”) and Response Biomedical Corp. (“RBC”) and is made pursuant to the
Manufacturing and Supply Agreement dated November 30, 2006 (“Agreement”) between
3M and RBC. All capitalized terms used but not defined in this Subcontract have
the meanings given in the Agreement. 

1.          
SCOPE: The Agreement governs this Subcontract except for any amendments
described below. If any term or condition in this Subcontract conflicts with the
Agreement, this Subcontract shall govern. The Products covered by this
Subcontract are defined below in section 3. The Specifications for Products are
listed in Schedule 1.

2.          
SUBCONTRACT TERM: This Subcontract begins on the Subcontract Effective Date
and continues for [***]  years, unless terminated earlier as provided
for herein (the “Subcontract Term”). The Subcontract Term may be renewed for
additional [***] year periods upon the mutual written agreement of RBC
and 3M. 3M shall have the right to terminate this Agreement in whole or in part
upon  days prior written notice to RBC at any time[***] after the
first  years of the Term. [***] 

3.          
DEFINITIONS: 

(a)          
“Product” means the disposable, single-use immunoassay test kit
and components thereof (e.g., sample handling device, reagents, lot card), as
listed on and further defined by the Specifications referenced in Schedule 1
hereto, and used in conjunction with the Reader (defined in Exhibit A-1 to the
Agreement) for detection of the Target.

(b)          
“Target” means the microorganism Staphylococcus aureus in anterior
nares swab specimens.

4.          
FORECAST; LEAD TIME: The first three (3) months of each Forecast shall be
binding on 3M and shall constitute a Firm Order. 3M shall be entitled to revise
the Forecast for the second three (3) months of each Forecast, but the quantity
of Products may not be increased by more than . [***] The Forecast for
the last six (6) months may be revised by 3M without restriction. The lead-time
for product shall be  days. [***] 

5.          
CAPACITY COMMITMENT: RBC will provide capacity information regarding the
Product to the JSC so that the JSC can discuss it on a quarterly basis. This
capacity information is shared with 3M for 3M’s planning purposes only.

6.          
  PRICES: Product prices are listed in Schedule One. Section 5(b) and 5(c)
  of the Agreement shall not apply to this Subcontract. 

7.          
INSPECTION: 3M shall conduct inspections of each shipment of Product for
patent defects and may reject all or any portion of such shipment that 3M
reasonably believes do not conform to the Specifications (such Product
quantities are hereinafter referred to as the 

1 

“Allegedly Non-Conforming Products”) by giving written notice
to RBC within thirty (30) days after receipt of shipment of the Allegedly
Non-Conforming Products at the Delivery destination set forth in the applicable
Purchase Order. Such notice shall identify in reasonable detail the nature of
the nonconformity. If 3M fails to provide RBC with written notice of Allegedly
NonConforming Products within such thirty (30) day period, 3M will be deemed to
have accepted the Products, but no such acceptance shall limit RBC’s warranties
or other obligations with respect to such Products.

8.          
WARRANTY PERIOD: The warranty period for the Product shall be from the
date of delivery of the Product until the Product expiry date as stated in the
Product labeling.

9.          
LICENSE: In the event the license to make or have made Products contemplated
in Section 23 of the Agreement goes into effect under the terms of Section 23(a)
of the Agreement, the earned royalty rate and other minimum terms for such
license to Products covered by this Subcontract will be as set out in Schedule 2
hereto, provided that such terms may be modified or other terms may be added as
mutually agreed upon in writing by 3M and RBC.

10.         COUNTERPARTS:
This Subcontract may be executed in any number of counterparts, each of
which when delivered, either in original or facsimile form, shall be deemed to
be an original and all of which together shall constitute one and the same
document. 

	ACCEPTED AND AGREED TO: 	 
	 	 
	3M COMPANY 	RESPONSE BIOMEDICAL CORP. 
	 	 
	 	 
	By: /s/ [Authorized Signatory]                                           
       	By: /s/ Bill Radvak                                                   
       
	 	 
	Title: ______________________________________	Title: “President & CEO”                                       
       

2 

Schedule One 

To 

Exhibit A-2 

Products, Specifications, and Prices 

I. Products and Specifications: The Specification for
Products to be supplied under this Subcontract are referenced below:

	Product 	Specification 
	3MTM Rapid Detect Staph aureus Test Kit, which
      includes a Cartridge, reagent, conjugated latex and a lot card. 	[Reference to Spec] 

II. Prices: 

A. Defined Terms. For purposes of this
Schedule One, the terms defined in this Section 1 shall have the
respective meanings set forth below. Other capitalized terms used in this
Schedule One without definition shall have the meanings assigned to them
in the Agreement. 

“Market Price” means the average price per unit of an
finished product or kit that incorporates Product (“Finished 3M Product”)
invoiced by 3M and its affiliates for all units of Finished 3M Product that is
commercially sold by 3M or its affiliates in the Representative Countries during
a 6-Month Period, that is equal to the quotient of: (i) the total amount
invoiced from the commercial sale of all units of the Finished 3M Product in the
Representative Countries during such 6-Month Period (including all units deemed
commercially sold under Section 4 of this Schedule One), less (x) charges
included in such invoiced amount for sales taxes, value added taxes and/or use
taxes, and/or duties in connection with import or export, (y) amounts repaid by
reason of rebates, rejections, credits or returns directly related to the
Finished 3M Product during the 6-Month Period and (z) charges included in such
invoiced amount for freight and/or insurance, each as determined in accordance
with 3M’s standard accounting practices for products it commercially sells,
which accounting practices shall be consistent with general practices in its
industry; divided by (ii) the number of units of such Finished 3M Product
commercially sold in the Representative Countries during such 6-Month Period.
Market Price shall be denominated in U.S. Dollars. For purposes of establishing
Market Price, all commercial sales of Finished 3M Products made in other
currencies shall be translated to U.S. Dollars in accordance with 3M’s standard
currency translation practices, which practices shall be consistent with general
practices in its industry. In the event that any commercial sale by 3M or its
affiliates during any year is made at a preferential price to any Third Party as
a result of an understanding or arrangement unrelated to the commercialization
of a Finished 3M Product (including a revenue-sharing arrangement) or for
compensation other than cash, such Finished 3M Product shall be deemed to have
been commercially sold to the Third Party at the Market Price otherwise in
effect for such Finished 3M Product (excluding the preferential transfers)
during such 6-Month Period. 

3 

“Initial Transfer Price” shall be calculated in
accordance with paragraph B of this Schedule One. 

“Representative Countries” means the following countries
and their respective territories and possessions: . [***]

“Transfer Price” shall be calculated in accordance with
paragraph C of this Schedule One, but in no event shall be less than
..[***]

“6-Month Period” shall mean the calendar six (6) month
periods starting with commercial launch and each successive calendar six (6)
month period. 

B. Initial Transfer Price and Reconciliation.
The Initial Transfer Price for the first 6-Month Period following launch
of any Finished 3M Product shall be calculated based upon the calculations
outlined in paragraph C below utilizing 3M’s estimated sales and volume amounts
for the first 6-Month Period following launch. Thirty (30) days following the
expiration of the first 6-Month Period following such launch of a Finished 3M
Product, the Parties will calculate the Transfer Price based on the formula
given below in paragraph C of Schedule One and determine whether a difference
between that Transfer Price and the Initial Transfer Price exists. If the
Transfer Price is greater than the Initial Transfer Price, 3M shall make a
reconciliation payment to the RBC in the amount of the difference. If the
Transfer Price is lesser than the Initial Transfer Price, RBC shall make a
reconciliation payment to 3M in the amount of the difference. 

C. On-going Calculation of Transfer
Price. At the same time as the Reconciliation payment referenced
in Paragraph B of Schedule One is calculated and thereafter thirty (30) calendar
days following each 6-Month Period the Parties will recalculate Transfer Price.
This recalculated Transfer Price, using actual sales and volume data from the
previous 6-Month Period will govern orders of Collaboration Assays placed during
the subsequent 6-Month Period. For example, utilizing sales and volume data from
January through June the Parties will calculate a Transfer Price on July
31st that will govern orders placed in from August 1st –
January 31st. The Transfer Price shall be calculated based on the
Market Price which is set solely by 3M and such calculation shall be in
accordance with the following table: 

	 
[***] 	 
[***] 	 
[***] 	 
[***] 
	 
[***] 	 
[***] 	 
[***] 	 
[***] 

For clarity, the following two examples of Transfer Price are
given: 

[***] 

[***]

4 

D.          
Payment of Transfer Price.

RBC’s sales of Product to 3M hereunder shall be at a price per
unit equal to the Transfer Price in effect at the time the Product is ordered by
3M from RBC.

 

 

 

 

5 

Schedule Two 

To 

Exhibit A-2 

License Terms 

1.          
Royalty 

	Royalty based on annual net sales of 	Rate 
	3MTM
      Rapid Detect Staph aureus Test 	 
    
	Kit 	 
    
	Net sales
      Million [***] 	[***] 
	 	  
	Net sales 
      Million [***] - 	 [***] 
	                 
      Million [***]	 
    
	Net sales  Million [***] 	 [***] 

“Net Sales Price” means the total price for a
3MTM Rapid Detect Staph aureus Test Kit invoiced by 3M or any
Affiliate, sublicensee or permitted assign for sale to a third party, less:

	 	(a) 	
      applicable taxes (e .g., sales, excise or use taxes) or
      duties;

	 	(b) 	
      separately stated charges for transportation or customs
      clearance;

	 	(c) 	
      credits for defective or returned 3MTM Rapid
      Detect Staph aureus Test Kit; and

	 	(d) 	
      discounts, rebates, refunds, marketing allowances or
      other promotional fees.

3M or its designee shall pay the royalty on the Net Sales Price
  of 3MTM Rapid Detect Staph aureus Test Kit, the manufacture or sale
  of which infringes a claim in an unexpired patent [***] within Sponsored
  Rights or Background Rights owned or controlled by RBC (as those terms are defined
  in the JDA) in the country where 3MTM Rapid Detect Staph aureus Test
  Kit is made or sold.

	2. 	
      Sublicenses

	 	 
		
      3M or its designee shall have the right to sublicense to
      its affiliates. 3M will unconditionally guarantee the performance of any
      such affiliates hereunder as if they were signatories to the license to
      the extent the performance or lack of performance is a breach of the
      license . A breach by any such affiliate of any such obligation shall
      constitute a breach by 3M of the license.

The license grant also includes the right for any customers
(ultimate or in privity or other) of 3M, its designee, or its affiliates to use
and/or sell (for further use or resale) the 3MTM Rapid Detect Staph
aureus Test Kit so made. 

3.          
Reports and Payment 

6 

3M shall deliver to RBC within sixty (60) days after the end of
each calendar quarter a written report showing its computation of royalties due
under the license upon net sales by 3M and its affiliates and its sublicensees
during such calendar quarter. All net sales shall be segmented in each such
report according to sales by 3M, each affiliate and each sublicensee, as well as
on a country-by-country basis, including the rates of exchange used to convert
such royalties to United States dollars from the currency in which such sales
were made. The rates of exchange to be used for converting royalties to United
States dollars shall be those in effect for the purchase of dollars as certified
by CitiBank, N.A., New York, New York, U.S.A., on the last business day of the
quarter with respect to which the payment is due. 3M, simultaneously with the
delivery of each such report, shall tender payment in United States dollars of
all royalties shown to be due thereon. 

4.          
Records, Audit 

3M shall keep, and shall require all affiliates and
sublicensees to keep, full, true and accurate books of accounts and other
records containing all information and data which may be necessary to ascertain
and verify the royalties payable hereunder for a period of three (3) years after
the date such royalties became payable. During the term of this Agreement after
the first commercial sale of Subject Product and for a period of one year
following termination of this Agreement, RBC shall have the right from time to
time (not to exceed once during each calendar year) to have an independent firm
of accountants (i.e., a certified public accountant or like person reasonably
acceptable to 3M) inspect such books, records and supporting data, provided such
shall not cover such records for more than the preceding three (3) years. Such
independent firm of accountants shall perform these audits at RBC’s expense upon
reasonable prior notice and during 3M’s regular business hours, and shall agree
as a condition to such audit to maintain the confidentiality of all information
of 3M disclosed or observed in connection with such audit and to disclose to RBC
only whether 3M has complied with its obligations under this Agreement with
respect to the accuracy of the royalty statements and payments. If the result of
such audit demonstrates an underpayment to RBC of 5% or more, 3M shall pay the
full amount of the underpayment and for the reasonable costs of such audit. 

5.          
Assignment 

The license granted shall be binding upon and inure to the
benefit of the successors in interest of the respective parties. Except as
otherwise provided in the license, neither the license nor any of the rights or
obligations thereunder may be assigned by either Party without the prior written
consent of the other Party, except either Party may assign the license or any of
the rights or obligations hereunder to an affiliate or to a Third Party with
which a Party may merge or consolidate, or to which it may transfer all or
substantially all of its assets to which the license relates, without obtaining
the prior written consent of the other Party. 

6.          
Competitive Activity 

The license shall provide for the enforcement by either Party
of Intellectual Property Rights granted under the license. 

7 

The license shall provide a mechanism for reduction of royalty
in at least the following circumstances: 

	 	(d) 	
      During any period wherein  [***] with respect to any country in which the legal action is
  being prosecuted.

	 	 	 
	 	(b) 	
      If any third party shall make, use, sell, offer for sale
      or import 3MTM Rapid Detect Staph aureus Test Kit in any
      country in which RBC has an actionable right against such third party, and
      [***] with respect to such country until any such activity in
      such country has ceased.

7.          
Termination 

The license shall terminate on the happening of one of the
following events: 

	 	(a) 	
      If not terminated sooner, the Agreement shall terminate
      with the expiration of the last to expire of an issued patent within the
      Intellectual Property Rights;

	 	(e) 	
      3M or its designee shall have the right to terminate the
      license agreement in its entirety or with respect to any country or with
      respect to any patent application or patent in any country by giving three
      (3) months prior written notice,

	 	(f) 	
      default by either Party.

8 

EXHIBIT A- 3 

SUBCONTRACT TO 

MANUFACTURING AND SUPPLY AGREEMENT 

MEDICAL DIVISION 

(Cartridges for Flu A/B) 

This Subcontract dated November 30, 2006 is between 3M Company,
acting through its Medical Division (“3M”) and Response Biomedical Corp. (“RBC”)
and is made pursuant to the Manufacturing and Supply Agreement dated November
30, 2006 (“Agreement”) between 3M and RBC. All capitalized terms used but not
defined in this Subcontract have the meanings given in the Agreement. 

1.          
SCOPE: The Agreement governs this Subcontract except for any amendments
described below. The Products covered by this Subcontract are defined below in
section 3. The Specifications for Products are listed in Schedule 1.

2.          
SUBCONTRACT TERM: This Subcontract begins on the Subcontract Effective Date
and continues for  years, unless terminated earlier as provided for
herein (the “Subcontract[***] Term”). The Subcontract Term may be renewed for
additional  year periods upon the[***] mutual written agreement of RBC
and 3M. 3M shall have the right to terminate this Agreement in whole or in part
upon ninety (90) days prior written notice to RBC at any time after the first
 years of the Term.[***]

3.          
DEFINITIONS: 

(a)          
“Product” means the disposable, single-use immunoassay test kit and
components thereof (e.g., sample handling device, reagents, lot card), as listed
on and further defined by the Specifications referenced in Schedule 1 hereto,
and used in conjunction with the Reader (defined in Exhibit A-1 to the
Agreement) for detection of the Target. 

(b)          
“Target” means the microorganisms influenza A and influenza B.

4.          
FORECAST; LEAD TIME: The first three (3) months of each Forecast shall be
binding on 3M and shall constitute a Firm Order. 3M shall be entitled to revise
the Forecast for the second three (3) months of each Forecast, but the quantity
of Products may not be increased by more than . [***] The Forecast for
the last six (6) months shall be non-binding on 3M. The lead-time for product
shall be ninety (90) days.

5.          
CAPACITY COMMITMENT: RBC will provide capacity information regarding the
Product to the JSC so that the JSC can discuss it on a quarterly basis. This
capacity information is shared with 3M for 3M’s planning purposes only.

6.          
PRICES: Product prices are listed in Schedule One. Section 5(b) and 5(c) of
the Agreement shall not apply to this Subcontract.

7.          
  WARRANTY PERIOD: The warranty period for the Product shall be from
  the date of delivery of the Product until the Product expiry date as stated
  in the Product labeling. 

8.          
Regulatory Filings. RBC shall be responsible for obtaining regulatory
approval, in its own name, to market Products and allow 3M to market such
Products in the United States, Canada and Japan. RBC agrees to provide to 3M
such information as it may deem reasonably 

1 

necessary to seek regulatory approval, marketing
authorizations, or similar approval to sell Products in any other countries in
accordance with paragraph 13.6 of the JDA. Further, RBC agrees to maintain such
regulatory filings in the United States, Canada and Japan for the Term of this
Agreement and to inform 3M of any changes to those filings or any correspondence
with the relevant regulatory agency regarding those filings.

9.          
LICENSE: In the event the license to make or have made Products contemplated
in Section 23 of the Agreement goes into effect under the terms of Section 23(a)
of the Agreement, the earned royalty rate and other minimum terms for such
license to Products covered by this Subcontract will be as set out in Schedule 2
hereto, provided that such terms may be modified or other terms may be added as
mutually agreed upon in writing by 3M and RBC.

10.       
 COUNTERPARTS: This Subcontract may be executed in any number of
counterparts, each of which when delivered, either in original or facsimile
form, shall be deemed to be an original and all of which together shall
constitute one and the same document. 

	ACCEPTED AND AGREED TO: 	 
	 	 
	3M COMPANY 	RESPONSE BIOMEDICAL CORP. 
	 	 
	 	 
	By: /s/ [Authorized Signatory]                                           
       	By: /s/ Bill Radvak                                                   
       
	 	 
	Title: ______________________________________	Title: “President & CEO”                                       
       

2 

Schedule One 

To 

Exhibit A-3 

Products, Specifications and Prices 

 

I. Products and Specifications: The Specification for Products
to be supplied under this Subcontract are referenced below:

	Product 	Specification 
	3MTM Rapid Detect Flu A/B Test Kit, which
      includes a Cartridge, reagent, conjugated latex and a lot card. 	[Reference to Spec] 

II. Prices: 

A. Defined Terms. For purposes of this
Schedule One, the terms defined in this Section 1 shall have the
respective meanings set forth below. Other capitalized terms used in this
Schedule One without definition shall have the meanings assigned to them
in the Agreement. 

“Market Price” means the average price per unit of an
finished product or kit that incorporates Product (“Finished 3M Product”)
invoiced by 3M and its affiliates for all units of Finished 3M Product that is
commercially sold by 3M or its affiliates in the Representative Countries during
a 6-Month Period, that is equal to the quotient of: (i) the total amount
invoiced from the commercial sale of all units of the Finished 3M Product in the
Representative Countries during such 6-Month Period (including all units deemed
commercially sold under Section 4 of this Schedule One), less (x) charges
included in such invoiced amount for sales taxes, value added taxes and/or use
taxes, and/or duties in connection with import or export, (y) amounts repaid by
reason of rebates, rejections, credits or returns directly related to the
Finished 3M Product during the 6-Month Period and (z) charges included in such
invoiced amount for freight and/or insurance, each as determined in accordance
with 3M’s standard accounting practices for products it commercially sells,
which accounting practices shall be consistent with general practices in its
industry; divided by (ii) the number of units of such Finished 3M Product
commercially sold in the Representative Countries during such 6-Month Period.
Market Price shall be denominated in U.S. Dollars. For purposes of establishing
Market Price, all commercial sales of Finished 3M Products made in other
currencies shall be translated to U.S. Dollars in accordance with 3M’s standard
currency translation practices, which practices shall be consistent with general
practices in its industry. In the event that any commercial sale by 3M or its
affiliates during any year is made at a preferential price to any Third Party as
a result of an understanding or arrangement unrelated to the commercialization
of a Finished 3M Product (including a revenue-sharing arrangement) or for
compensation other than cash, such Finished 3M Product shall be deemed to have
been commercially sold to the Third Party at the Market Price otherwise in
effect for such Finished 3M Product (excluding the preferential transfers)
during such 6-Month Period. 

3 

“Initial Transfer Price” shall be calculated in
accordance with paragraph B of this Schedule One. 

“Representative Countries” means the following countries
and their respective territories and possessions: . [***]

“Transfer Price” shall be calculated in accordance with
paragraph C of this Schedule One, but in no event shall be less than
..[***]

 “6-Month Period” shall mean the calendar six (6)
month periods starting with commercial launch and each successive calendar six
(6) month period. 

B. Initial Transfer Price and Reconciliation.
The Initial Transfer Price for the first 6-Month Period following launch
of any Finished 3M Product shall be calculated based upon the calculations
outlined in paragraph C below utilizing 3M’s estimated sales and volume amounts
for the first 6-Month Period following launch. Thirty (30) days following the
expiration of the first 6-Month Period following such launch of a Finished 3M
Product, the Parties will calculate the Transfer Price based on the formula
given below in paragraph C of Schedule One and determine whether a difference
between that Transfer Price and the Initial Transfer Price exists. If the
Transfer Price is greater than the Initial Transfer Price, 3M shall make a
reconciliation payment to the RBC in the amount of the difference. If the
Transfer Price is lesser than the Initial Transfer Price, RBC shall make a
reconciliation payment to 3M in the amount of the difference. 

C. On-going Calculation of Transfer
Price. At the same time as the Reconciliation payment referenced
in Paragraph B of Schedule One is calculated and thereafter thirty (30) calendar
days following each 6-Month Period the Parties will recalculate Transfer Price.
This recalculated Transfer Price, using actual sales and volume data from the
previous 6-Month Period will govern orders of Collaboration Assays placed during
the subsequent 6-Month Period. For example, utilizing sales and volume data from
January through June the Parties will calculate a Transfer Price on July
31st that will govern orders placed in from August 1st –
January 31st. The Transfer Price shall be calculated based on the
Market Price which is set solely by 3M and such calculation shall be in
accordance with the following table: 

	 
[***] 	 
[***] 	 
[***] 	 
[***] 
	 
[***] 	 
[***] 	 
[***] 	 
[***] 

For clarity, the following two examples of Transfer Price are
given: 

[***] 

[***]

4 

D.        Payment
of Transfer Price.

RBC’s sales of Product to 3M hereunder shall be at a price per
unit equal to the Transfer Price in effect at the time the Product is ordered by
3M from RBC. 

 

 

 

 

 

5 

Schedule Two 
To 
Exhibit A-3 
License Terms

1.        Royalty

	Royalty based on annual net sales of 	Rate 
	3MTM
      Rapid Detect Flu A/B Test Kit 	 
    
	Net sales
      Million 	[***] 
	 	  
	Net sales
      Million     [***] - 	[***]
       
	                
      Million     [***] 	 
    
	Net sales Million     [***] 	[***]  

“Net Sales Price” means the total price for a
3MTM Rapid Detect Flu A/B Test Kit invoiced by 3M or any Affiliate,
sublicensee or permitted assign for sale to a third party, less:

	 	(a) 	
      applicable taxes (e .g., sales, excise or use taxes) or
      duties;

	 	(b) 	
      separately stated charges for transportation or customs
      clearance;

	 	(c) 	
      credits for defective or returned 3MTM Rapid
      Detect Flu A/B Test Kit; and

	 	(d) 	
      discounts, rebates, refunds, marketing allowances or
      other promotional fees.

3M or its designee shall pay the royalty on the Net Sales Price
  of 3MTM Rapid Detect Flu A/B Test Kit, the manufacture or sale of
  which infringes a claim in an unexpired patent [***] within Sponsored
  Rights or Background Rights owned or controlled by Response (as those terms
  are defined in the JDA) in the country where 3MTM Rapid Detect Flu
  A/B Test Kit is made or sold. 

	2. 	
      Sublicenses

	 	 
		
      3M or its designee shall have the right to sublicense to
      its affiliates. 3M will unconditionally guarantee the performance of any
      such affiliates hereunder as if they were signatories to the license to
      the extent the performance or lack of performance is a breach of the
      license . A breach by any such affiliate of any such obligation shall
      constitute a breach by 3M of the license.

The license grant also includes the right for any customers
(ultimate or in privity or other) of 3M, its designee, or its affiliates to use
and/or sell (for further use or resale) the 3MTM Rapid Detect Flu A/B
Test Kit so made. 

6 

B 

3.        Reports and
Payment 

3M shall deliver to RBC within sixty (60) days after the end of
each calendar quarter a written report showing its computation of royalties due
under the license upon net sales by 3M and its affiliates and its sublicensees
during such calendar quarter. All net sales shall be segmented in each such
report according to sales by 3M, each affiliate and each sublicensee, as well as
on a country-by-country basis, including the rates of exchange used to convert
such royalties to United States dollars from the currency in which such sales
were made. The rates of exchange to be used for converting royalties to United
States dollars shall be those in effect for the purchase of dollars as certified
by CitiBank, N.A., New York, New York, U.S.A., on the last business day of the
quarter with respect to which the payment is due. 3M, simultaneously with the
delivery of each such report, shall tender payment in United States dollars of
all royalties shown to be due thereon. 

4.        Records,
Audit 

3M shall keep, and shall require all affiliates and
sublicensees to keep, full, true and accurate books of accounts and other
records containing all information and data which may be necessary to ascertain
and verify the royalties payable hereunder for a period of three (3) years after
the date such royalties became payable. During the term of this Agreement after
the first commercial sale of Subject Product and for a period of one year
following termination of this Agreement, RBC shall have the right from time to
time (not to exceed once during each calendar year) to have an independent firm
of accountants (i.e., a certified public accountant or like person reasonably
acceptable to 3M) inspect such books, records and supporting data, provided such
shall not cover such records for more than the preceding three (3) years. Such
independent firm of accountants shall perform these audits at RBC’s expense upon
reasonable prior notice and during 3M’s regular business hours, and shall agree
as a condition to such audit to maintain the confidentiality of all information
of 3M disclosed or observed in connection with such audit and to disclose to RBC
only whether 3M has complied with its obligations under this Agreement with
respect to the accuracy of the royalty statements and payments. If the result of
such audit demonstrates an underpayment to RBC of 5% or more, 3M shall pay the
full amount of the underpayment and for the reasonable costs of such audit. 

5.        Assignment

The license granted shall be binding upon and inure to the
benefit of the successors in interest of the respective parties. Except as
otherwise provided in the license, neither the license nor any of the rights or
obligations thereunder may be assigned by either Party without the prior written
consent of the other Party, except either Party may assign the license or any of
the rights or obligations hereunder to an affiliate or to a Third Party with
which a Party may merge or consolidate, or to which it may transfer all or
substantially all of its assets to which the license relates, without obtaining
the prior written consent of the other Party. 

7 

6.        Competitive
Activity 

The license shall provide for the enforcement by either Party
of Intellectual Property Rights granted under the license. 

The license shall provide a mechanism for reduction of royalty
in at least the following circumstances: 

	 	(g) 	
      During any period wherein [***] for such period with respect to any country in which the
  legal action is being prosecuted.

	 	 	 
	 	(b) 	
      If any third party shall make, use, sell, offer for sale
      or import 3MTM Rapid Detect Flu A/B Test Kit in any country in
      which RBC has an actionable right against such third party, and
      [***] with respect to such country until any such activity in
      such country has ceased.

7.        Termination

The license shall terminate on the happening of one of the
following events: 

	 	(a) 	
      If not terminated sooner, the Agreement shall terminate
      with the expiration of the last to expire of any issued patent in the
      Intellectual Property Rights;

	 	(h) 	
      3M or its designee shall have the right to terminate the
      license agreement in its entirety or with respect to any country or with
      respect to any patent application or patent in any country by giving three
      (3) months prior written notice,

	 	(i) 	
      default by either Party.

8

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00156-of-00352.parquet"}]]