Document:

Exhibit

 MIRAMAR LABS, INC
EMPLOYMENT AGREEMENT
This Employment Agreement (the “Agreement”) is entered into, effective as of May 27, 2016 (the “Effective Date”), by and between Miramar Labs, Inc. (the “Company”) and R. Michael Kleine (“Executive”).   
W I T N E S S E T H:
WHEREAS, the Company and the Executive entered into an offer letter agreement on November 25, 2013 (the “Offer Letter”), pursuant to which Executive agreed to serve as the Company’s President and Chief Executive Officer (“CEO”), reporting to the Chairman of the Company’s Board of Directors (the “Board”). 
WHEREAS, the Company desires for Executive to continue to serve as the Company’s CEO, and Executive desires and is willing to continue employment with the Company in such capacity; and
WHEREAS, the Company and Executive desire to embody the terms and conditions of Executive’s employment in a written employment agreement, which will supersede all prior agreements of employment, whether written or oral, between the Company and Executive, including, without limitation, the Offer Letter.
NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree as follows:
1.Duties and Scope of Employment.
(a)Positions and Duties.  As of the Effective Date, Executive will continue to serve as the Company’s CEO reporting to the Chairman of the Board.  Executive will render such business and professional services in the performance of his duties, consistent with Executive’s position within the Company, as will reasonably be assigned to him by the Board.  The period Executive is employed by the Company under this Agreement is referred to herein as the “Employment Term”.  
(b)Obligations.  During the Employment Term, Executive will devote Executive’s full business efforts and time to the Company and will use good faith efforts to discharge Executive’s obligations under this Agreement to the best of Executive’s ability and in accordance with each of the Company’s corporate guidance and ethics guidelines, conflict of interests policies and code of conduct, including, without limitation, Company policy not to disclose any information regarding salary, bonuses, or stock purchase or option allocations to other employees, either directly or indirectly.  For the duration of the Employment Term, Executive agrees not to actively engage in any other employment, occupation, or consulting activity for any direct or indirect remuneration without the prior approval of the Board, which approval will not be unreasonably withheld; provided, however, that Executive may, without the 

approval of the Board, serve in any capacity with any civic, educational, social, or charitable organization, provided such services do not interfere with Executive’s obligations to the Company.
(c)Prior Agreements.  Executive hereby represents and warrants to the Company that he is not party to any contract, understanding, agreement or policy, written or otherwise, which would be breached by her entering into, or performing services under, this Agreement.  Executive further represents that he has disclosed to the Company in writing all threatened, pending, or actual claims against Executive of which he is aware, that are unresolved and still outstanding as of the Effective Date, in each case, as a result of his employment with any previous employer or his membership on any boards of directors.  
(d)Other Entities.  Executive agrees to serve and may be appointed, without additional compensation, as an officer and director for any of the Company’s subsidiaries, partnerships, joint ventures, limited liability companies and other affiliates, including entities in which the Company has a significant investment as determined by the Company.  As used in this Agreement, the term “affiliates” will include any entity controlled by, controlling, or under common control of the Company.  
2.At-Will Employment.  Executive and the Company agree that Executive’s employment with the Company constitutes “at-will” employment.  Executive and the Company acknowledge that this employment relationship may be terminated at any time, upon written notice to the other party, with or without good cause or for any or no cause, at the election of either the Company or Executive.  Executive understands and agrees that neither her job performance nor promotions, commendations, bonuses or the like from the Company give rise to or in any way serve as the basis for modification, amendment, or extension, by implication or otherwise, of her employment with the Company
3.Compensation.
(a)    Base Salary.  As of the Effective Date, the Company will pay Executive an annual salary of $453,000 as compensation for his services (such annual salary, as is then effective, to be referred to herein as “Base Salary”), paid periodically in accordance with the Company’s normal payroll practices, but not less than monthly, and be subject to the usual, required withholdings.  Executive will not be eligible for overtime pay.
(b)    Target Bonus.  Executive will be eligible to receive an annual bonus of up to forty percent (40%) of Executive’s Base Salary, less applicable withholdings, upon achievement of performance objectives to be mutually agreed upon by Executive and the Board, provided that the Board will determine whether such performance objectives have been achieved in its sole discretion (the “Target Bonus”).  The Target Bonus, or any portion thereof, will be paid in Quarter 1 of the calendar year following the year in which the Board determines that the Target Bonus has been earned, but in no event shall the Target Bonus be paid after the later of (i) the fifteenth (15th) day of the third (3rd) 

month following the close of the Company’s fiscal year in which the Target Bonus is earned or (ii) March 15 following the calendar year in which the Target Bonus is earned. 
(c)    Housing Allowance.  The Company will reimburse Executive through payroll, in an amount not to exceed $5,000 per month, for housing expenses in the Bay Area.  Each such reimbursement shall be made by the Company to Executive in the next regularly scheduled payroll following sufficient proof of such expenses, as determined in Company’s sole judgment.
(d)    Review and Adjustments. Executive’s Base Salary, Target Bonus, and other compensatory arrangements will be subject to review and adjustment in accordance with the Company’s applicable policies.
4.Stock Options.
(a)    Option Grant.  On July 17, 2014, the Board granted Executive a stock option to purchase 2,969,439 shares of the Company’s common stock (the “First Option”). On October 9, 2014, the Board granted Executive a stock option to purchase an additional 559,615 shares of the Company’s common stock (the “Second Option,” and together with the First Option, the “Options”). The Options represent five and one-half percent (5.50%) of the Company’s total outstanding shares calculated on a fully-diluted basis as of the post-closing of the Series D financing.  The exercise price per share for each Option is $0.49, which is equal to the fair market value per share of an underlying share of Company common stock on the date of grant, as determined by the Board.  The vesting schedule of each Option will remain as follows:  Twenty-five percent (25%) of the shares subject to the Option shall vest on the one (1) year anniversary of the vesting commencement date for the Option, subject to Executive’s continued service with the Company through such date, and the remaining shares subject to the Option will vest monthly over the next thirty-six (36) months in equal monthly amounts subject to Executive’s continued service with the Company through each such vesting date.  Each Option shall continue to be subject to the terms, definitions and conditions, including vesting requirements, of the Company’s 2006 Stock Plan (the “Equity Plan”) and a stock option agreement between Executive and the Company (each an “Option Agreement”), both of which are incorporated herein by reference.  No right to any stock is earned or accrued until such time that vesting occurs, nor does the grant confer any right to continue vesting or employment.  
(b)    Change in Control.  If, during the twelve (12)-month period after a Change in Control, (i) Executive terminates her employment with the Company (or any affiliate) for Good Reason or (ii) the Company (or any affiliate) terminates Executive’s employment without Cause, Executive will be entitled to accelerated vesting as to one hundred percent (100%) of the then unvested portion of all of Executive’s outstanding stock options, including, for the avoidance of any doubt, the Options.
5.Limitation on Payments.  In the event that the benefits provided for in this Agreement or otherwise payable to Executive (x) constitute “parachute payments” within the meaning of Section 

280G of the Code and (y) but for this Section 5 would be subject to the excise tax imposed by Section 4999 of the Code, then Executive’s benefits will be either (i) delivered in full, or (ii) delivered as to such lesser extent which would result in no portion of such benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code.  If a reduction in amounts to be paid must be made, any non-cash amounts will be reduced prior to the reduction of any cash amounts.  Unless the Company and Executive otherwise agree in writing, any determination required under this Section 5 will be made in writing by a well-recognized independent public accounting firm chosen by the Company (the “Accountants”), whose determination will be conclusive and binding upon Executive and the Company for all purposes.  For purposes of making the calculations required by this Section 5, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code.  The Company and Executive will furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section 5. The Company will bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 5.
6.Employee Benefits.  
(a)    Generally.  During the Employment Term, Executive is entitled to participate in the employee benefit plans currently and hereafter maintained by the Company, without limitation, the medical, dental, vision, life, flexible spending account and disability plans.  The Company may cancel or change the benefit plans and programs it offers to the Company’s employees at any time.  Accordingly, Executive will be able to participate in any Company-sponsored retirement plan, subject to the provisions of the applicable plan.
(b)    Paid Time Off.  During the Employment Term, Executive will be entitled to fifteen (15) days of paid time off (“PTO”), which will accrue at a rate of ten (10) hours per month, in accordance with the Company’s PTO policy.  PTO shall be taken at such time as mutually and reasonably agreed by Executive and the Company.  Executive will receive paid holidays in accordance with the Company’s regular holiday practices.
(c)    Expenses.  The Company will reimburse Executive for reasonable travel, entertainment and other expenses incurred by Executive in the furtherance of the performance of Executive’s duties hereunder, in accordance with the Company’s expense reimbursement policy as in effect from time to time.

7.Termination of Employment.  In the event Executive’s employment with the Company terminates for any reason, Executive will be entitled to any (a) unpaid Base Salary accrued up to the effective date of termination; (b) pay for accrued but unused PTO; (c) benefits or compensation as provided under the terms of any employee benefit and compensation agreements or plans applicable to Executive; and (d) unreimbursed business expenses required to be reimbursed to Executive; and (e) rights to indemnification Executive may have under the Company’s Certificate of Incorporation, Bylaws, the Agreement, or separate indemnification agreement, as applicable.
8.Code Section 409A.  Notwithstanding anything to the contrary in this Agreement solely with respect to the timing of the payment of any severance payments or benefits other than payment on account of Executive’s termination due to Executive’s death, if Executive is a “specified employee” within the meaning of Section 409A of the Code and any regulations and guidance promulgated thereunder (“Section 409A”) at the time of Executive’s termination of employment, then to the extent any severance payments payable to Executive pursuant to this Agreement, and any other severance payments or separation benefits are a plan or part of a plan providing for the “deferral of compensation” under Section 409A (together, the “Deferred Compensation Separation Benefits”) otherwise due to Executive on or within the six (6) month period following Executive’s termination of employment will accrue during such six (6) month period and will become payable in a lump sum payment on the date six (6) months and one (1) day following the date of Executive’s termination of employment, unless Executive dies following the termination of her employment, in which case, the Deferred Compensation Separation Benefits will be paid to the personal representative of Executive’s estate (which shall be Executive’s living trust, or if there is none, her probate estate) as soon as practicable following her death.  All subsequent Deferred Compensation Separation Benefits, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit.  It is the intent of this Agreement to comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply.
9.Definitions.
(a)    Cause.  For purposes of this Agreement, “Cause” shall mean:
(i)Executive’s continued failure to perform her assigned duties or responsibilities after notice thereof from the Company describing the failure to perform such duties or responsibilities, and the executive has been provided a reasonable cure period of not less than sixty (60) days; 
(ii)Executive engaging in any act of dishonesty, fraud or misrepresentation; 
(iii)Executive’s violation of any federal or state law or regulation applicable to the business of the Company or its affiliates; 

(iv)Executive’s breach of any confidentiality agreement or invention assignment agreement between Executive and the Company (or any affiliate of the Company); or 
(v)Executive being convicted of, or entering a plea of nolo contendere to, any crime or committing any act of moral turpitude.
(b)    Change in Control.  For purposes of this Agreement, “Change in Control” shall have the same meaning as such term is defined in the Equity Plan.
(c)    Good Reason.  For purposes of this Agreement, “Good Reason” shall mean Executive’s resignation within thirty (30) days following the expiration of any Company cure period (discussed below) following the occurrence of any of the following, without Executive’s express written consent:
(i)    a material reduction in Executive’s Base Salary or Target Bonus opportunity; 
(ii)    a material diminution of Executive’s job duties or responsibilities; or
(iii)    a change in the location of Executive’s employment of more than fifty (50) miles.
Executive’s resignation will not be deemed to be for Good Reason unless Executive has first provided the Company with written notice of the acts or omissions constituting the grounds for    “Good Reason” within ninety (90) days of the initial existence of the grounds for “Good Reason” and a reasonable cure period of not less than thirty (30) days following the date the Company receives such notice, and such condition has not been cured during such period.
10.Indemnification.  Subject to applicable law, Executive will be provided indemnification to the maximum extent permitted by the Company’s Certificate of Incorporation or Bylaws, including, if applicable, any directors and officers insurance policies, with such indemnification to be on terms determined by the Board or any of its committees, but on terms no less favorable than provided to any other Company executive officer or director and subject to the terms of any separate written indemnification agreement.
11.Confidential Information, Invention Assignment, and Arbitration.  Executive agrees to continue to be subject to the terms and conditions of the At-Will Employment, Confidential Information, Invention Assignment, and Arbitration Agreement executed by Executive and the Company.
12.Assignment.  This Agreement will be binding upon and inure to the benefit of (a) the heirs, executors and legal representatives of Executive upon Executive’s death, and (b) any successor of the Company.  Any such successor of the Company will be deemed substituted for the Company 

under the terms of this Agreement for all purposes.  For this purpose, “successor” means any person, firm, corporation, or other business entity which at any time, whether by purchase, merger, or otherwise, directly or indirectly acquires all or substantially all of the assets or business of the Company.  None of the rights of Executive to receive any form of compensation payable pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution.  Any other attempted assignment, transfer, conveyance, or other disposition of Executive’s right to compensation or other benefits will be null and void.
13.Notices.  All notices, requests, demands and other communications called for hereunder will be in writing and will be deemed given (i) on the date of delivery if delivered personally; (ii) one (1) day after being sent overnight by a well-established commercial overnight service; or (iii) four (4) days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors at the following addresses, or at such other addresses as the parties may later designate in writing:
	
		
	If to the Company:
	Miramar Labs, Inc

	 
	Attn: Chairman of the Board, c/o Mark Deem

	 
	2790 Walsh Avenue

	 
	Santa Clara, CA 95051

	 
	 

	If to Executive:
	R. Michael Kleine

	 
	at the last residential address known by the Company.

14.Severability.  If any provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable, or void, this Agreement will continue in full force and effect without said provision.
15.Integration.  This Agreement, together with the At-Will Employment, Confidential Information, Invention Assignment, and Arbitration Agreement and the Option Agreement, represents the entire agreement and understanding between the parties as to the subject matter herein and supersedes all prior or contemporaneous agreements whether written or oral, including, without limitation, the Offer Letter  No waiver, alteration, or modification of any of the provisions of this Agreement will be binding unless in a writing and signed by duly authorized representatives of the parties hereto.  In entering into this Agreement, no party has relied on or made any representation, warranty, inducement, promise, or understanding that is not in this Agreement.  To the extent that any provisions of this Agreement conflict with those of any other agreement to be signed upon Executive’s hire, the terms in this Agreement will prevail.

16.Waiver of Breach.  The waiver of a breach of any term or provision of this Agreement, which must be in writing, will not operate as or be construed to be a waiver of any other previous or subsequent breach of this Agreement.
17.Headings.  All captions and Section headings used in this Agreement are for convenient reference only and do not form a part of this Agreement.
18.Taxation.  All payments made pursuant to this Agreement will be subject to withholding of any applicable taxes.  Executive acknowledges that she has reviewed with her own tax advisors the federal, state, local and foreign tax consequences of payments and transactions described in this Agreement and she is relying solely on such advisors and not on any statements or representations of the Company or any of its agents.  Executive understands that the she (and not the Company) shall be responsible for any tax liability (other than employment tax liability owed by the Company) that may arise as a result of the payments and transactions contemplated by this Agreement.
19.Governing Law.  This Agreement will be governed by the laws of the state of California without regard to its conflict of laws provisions.
20.Acknowledgment.  Executive acknowledges that she has had the opportunity to discuss this matter with and obtain advice from her private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, and is knowingly and voluntarily entering into this Agreement.
21.Counterparts.  This Agreement may be executed in counterparts, and each counterpart will have the same force and effect as an original and will constitute an effective, binding agreement on the part of each of the undersigned.

IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by a duly authorized officer, as of the day and year written below.

COMPANY:
MIRAMAR LABS, INC.
	
		
	/s/ Mark Deem
	Date:  June 5, 2016

	Mark Deem
	 

	Chairman of the Board of Directors
	 

	 
	 

	EXECUTIVE:
	 

	 
	 

	/s/ R. Michael Kleine
	Date:  June 1, 2016

	R. Michael Kleine
	 

[SIGNATURE PAGE TO R. MICHAEL KLEINE EMPLOYMENT AGREEMENT]Exhibit

SUPPLY AGREEMENT
This SUPPLY AGREEMENT (this “Agreement”), effective as of November 13th, 2014 (the “Effective Date”), is made by and between Miramar Labs, Inc., having a place of business at 2790 Walsh Ave., Santa Clara, Ca., (“Company”), and Broadband Wireless, LLC., having a place of business at 280 Greg St. Reno, NV 89502 (“Supplier”).  Company and Supplier may be referred to herein each, individually, as a “Party” or, collectively, as the “Parties”.
BACKGROUND
A.    Company has a need for and desires to purchase Product(s) (as defined herein) for use in its microwave console; and
B.    Supplier produces, supplies, and desires to sell such Product(s) to Company for use in Company’s microwave console, all on the terms and conditions set forth herein below.
NOW THEREFORE, for and in consideration of the covenants, conditions, and undertakings hereinafter set forth, it is agreed by and between the Parties as follows:
ARTICLE 1 
DEFINITIONS
As used in this Agreement, the following capitalized terms shall have the meanings indicated below:
1.1
    “Applicable Laws” shall mean all laws, ordinances, rules and regulations of any governmental or regulatory authority within the United States that apply to the manufacture and supply of Products, including without limitation (a) all applicable federal, state and local laws and regulations; (b) the U.S. Federal Food, Drug and Cosmetic Act (“FDCA”), (c) regulations and guidelines of the FDA and other Regulatory Agencies and (d) current Quality System Regulations (QSR) promulgated by the FDA.
1.2
    “Facility” shall mean the QSR manufacturing facility located at 280 Greg St. Reno, NV 89502.
1.3
    “FDA” shall mean the United States Food and Drug Administration, or any successor agency thereto.
1.4
    Intellectual Property Rights means all rights (including rights of ownership, rights of license to use, rights arising through use and rights the subject of applications to register) in and to: Trademarks; Trade Secrets; Copyrights, Patents; and all designs, patents, copyright, processes, methods, inventions, product formulations, eligible layout rights and other intellectual property 

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rights of all kinds whether or not registered and protected by law and applications for any of the foregoing.
1.5
    “Product” shall mean the product described in Exhibit A hereto, which is manufactured and supplied to Company by Supplier under this Agreement.
1.6
    “Regulatory Agency” shall mean any governmental regulatory authority in the United States involved in regulating any aspect of the conduct, development, manufacture, market approval, sale, distribution, packaging or use of pharmaceutical products, including the FDA.
1.7
    “Specifications” shall mean the specifications set forth and in Company’s Amplifier Specifications PN0514D and PN0514E.
ARTICLE 2
     
SUPPLY
2.1
    Product Supply.  Subject to the terms and conditions of this Agreement, Supplier shall supply to Company all quantities of the Product ordered by Company under this Agreement.
2.2
    Form of Orders.  Company’s orders for Product shall be made pursuant to a written purchase order on its standard form, and will provide for shipment in accordance with reasonable delivery schedules and lead times as may be agreed upon from time to time by Supplier and Company so long as the maximum lead time shall not exceed sixty (60) days unless otherwise agreed to by the Parties.  ANY ADDITIONAL OR INCONSISTENT TERMS OR CONDITIONS OF ANY PURCHASE ORDER, ACKNOWLEDGMENT OR SIMILAR STANDARDIZED FORM GIVEN OR RECEIVED PURSUANT TO THIS AGREEMENT WILL HAVE NO EFFECT AND SUCH TERMS AND CONDITIONS ARE HEREBY EXCLUDED.
2.3
    Acceptance.  Supplier shall accept and fill purchase orders that have been issued by Company in compliance with this Article 2.  Supplier shall confirm its receipt of purchase orders submitted by Company by notifying Company or its designees, as the case may be, within three (3) business days after receiving such purchase order.  For the avoidance of doubt, in the event Supplier does not so notify Company within such three (3) day period, then such purchase order shall be deemed received and accepted.
2.4
    Packaging.  All Product delivered hereunder shall be suitably packed for shipment by Supplier in accordance with good commercial practice with respect to protection of such Product 

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during transportation and marked for shipment to Company’s specified receiving point.  Each package will be individually labeled with a description of its contents, including the manufacturer lot number, quantity of Product, date of manufacture and expiration date as applicable.
2.5
    Price.  Prices for Products hereunder may only be changed by express written consent of the parties.  Price increases of more than 3% must be supported by evidence of cost increases.
ARTICLE 3
     
PAYMENTS
3.1
    Price.  The price to be paid by Company per unit of Product shall be as set forth on Exhibit B hereto and Company shall pay such price in accordance with the payment schedule described therein.
3.2
    Invoicing; Payment.
3.2.1
    Product Invoices.  Supplier shall submit an invoice to Company upon shipment of Product ordered by Company under this Agreement for all amounts due with respect to such shipment.  All invoices will be sent to the address specified in the applicable purchase order, and each invoice will state the aggregate and unit price for Product in a given shipment, plus any insurance, taxes, or other costs incident to the purchase or shipment initially paid by Supplier but to be borne by Company under this Agreement.  Amounts payable shall be adjusted to reflect amounts advanced for subcomponent purchases.  All undisputed invoices shall be due and payable within thirty (30) days of Company’s acceptance of the Product.
3.2.2
    Subcomponent Invoices.  Supplier shall submit an invoice to Company upon receipt of a Subcomponent Purchase Order (“Subcomponent Invoice”).  All Subcomponent Invoices will be sent to the address specified in the applicable Subcomponent Purchase Order, and each invoice will state the aggregate and unit price for subcomponents in a given order.  All undisputed subcomponent invoices shall be due and payable within thirty (30) days of Company’s receipt of proof of purchase of such subcomponents.
3.3
    Taxes.  All taxes (and any related penalties or interest) imposed on any payment by Company to Supplier shall be the sole responsibility of Supplier.
3.4
    Currency.  All amounts payable by Company hereunder will be made in United States 

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Dollars.  Unless otherwise set forth, all amounts specified in any purchase order shall be deemed specified in United States Dollars.
ARTICLE 4
     
SUBCOMPONENTS
4.1
    Subcomponent Purchases.  Company may, from time to time, issue purchase orders to Supplier for the purchase of subcomponents used in the manufacture of Product, including, without limitation, Company’s Purchase Order Number 15731 issued prior to the execution of this Agreement (“Subcomponent Purchase Order”).  In the event Company issues such Subcomponent Purchase Order, Supplier shall purchase such subcomponents, properly store and retain such subcomponents in inventory for use solely in the manufacture of Products.  Company shall own and have title to such subcomponents.
4.2
    Title Transfer.  Upon payment by Company of any Subcomponent Invoice, the materials purchased under the associated Subcomponent Purchase Order shall, notwithstanding their physical location, become the property of Company (“Company Subcomponents”).
4.3
    Security Interests.  Company shall have a security interest in all Company Subcomponents stored at Supplier’s facilities or facilities under Supplier’s control.  On request of Company, Supplier will execute financing statements and other instruments that Company may request to perfect Company’s security interest.
4.4
    Delivery.  Supplier shall, upon request by Company, deliver all Company Subcomponents to Company or Company’s designee.
ARTICLE 5
     
DELIVERY; ACCEPTANCE
5.1
    Delivery.  Supplier shall deliver the quantities of Product ordered by Company on the dates specified in Company’s purchase orders submitted.  All Product shipments shall be delivered FOB Company’s Dock, freight collect.  The carrier shall be selected by agreement between Company and Supplier, except that if no such agreement is reached, Company shall select the carrier.  Each shipment shall be insured for the benefit of Company.
5.2
    Acceptance.  Acceptance by Company of Product delivered by Supplier shall be subject to inspection by Company or its designee.  If on such inspection or testing Company or its designee discovers (a) visible damage to the Products, (b) that the Products are degraded due to heat or 

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instability, or (c) that any Product fails to conform with the Specifications therefor or otherwise fails to conform to the warranties given by Supplier under this Agreement.  Company or such designee may reject such Product, which rejection will be accomplished by giving written notice to Supplier.  Upon request from Supplier, Company shall return the rejected Product in accordance with Supplier’s reasonable instructions and at Supplier’s expense.  In the event that Supplier and Company agree (or there is an independent finding) that any Products failed to comply with the Specification, the Warranties set forth herein or Applicable Law.  Supplier shall use its best efforts to replace properly rejected Product within the shortest possible time and in any event within thirty (30) days after Supplier’s receipt of notice thereof.  In the event all or part of a shipment of Product is rejected prior to Company’s payment therefor.  Company may withhold such payment until receipt of replacement Product that conform with the Specifications therefor and to the warranties given by Supplier under this Agreement.
5.3
    Latent Defects.  Notwithstanding anything to the contrary herein, if Company first discovers that any Product fails to conform with the Specifications or is otherwise defective only after Company’s acceptance thereof, and such failure would not have been readily discoverable from a reasonable inspection or review of the Products or its associated documentation provided by Supplier (collectively, “Latent Defects”).  Company shall have the continuing right to reject the Products, provided it notifies Supplier of the Latent Defect within fifteen (15) business days after the discovery of the Latent Defect.
ARTICLE 6
     
QUALITY
6.1
    Quality System.  Supplier shall establish, document, and maintain a quality system compliant with 21 CFR Part 820 (US FDA) and EN ISO 13485:2012 (ISO 13485:2003) as applicable and including, but not limited to the following elements:
6.1.1
    Document and Records Control (21 CFR 820.40, 820.184; ISO 13458 4.2): Supplier shall maintain a document and revision control system for all specifications and procedures associated with product to be delivered to company.  Records shall be maintained as described below.
6.1.2
    Management Responsibility (21 CFR 820.20; ISO 13458 5.1, 5.3, 5.5, 5.6, 4.2.2): Supplier’s top management shall provide evidence of its commitment to the development and implementation of the quality system and maintain its effectiveness.
6.1.3
    Personnel/Training (21 CFR 820.25; ISO 13458 6.2): Personnel performing work affecting product quality shall be competent on the basis of appropriate education, training, skills, and experience.

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6.1.4
    Equipment Control (21 CFR 820.70(g); ISO 13458 7.6): Supplier shall ensure all equipment used in manufacturing, test, and inspection of product meets specified requirements and is appropriately designed, constructed, maintained, and when necessary, verified or calibrated at specified intervals.
6.1.5
    Work Environment (21 CFR 820.70(f); ISO 13458 6.3, 6.4): Supplier shall determine and manage the work environment needed to achieve conformity to product requirements.
6.1.6
    Purchasing and Material Controls (21 CFR 820.50, 820.60, 820.140, 820.150, 8.20.80; ISO 13458 7.4, 7.5.3.3): Supplier shall establish criteria for selection, evaluation, and reevaluation of suppliers to ensure ability to supply product in accordance with requirements.  Records of results of evaluations and any necessary actions arising from evaluations shall be maintained.  Change control shall be applied to all suppliers.  Any changes from original product supplied (material, source, manufacturing processes, etc.) must be approved by Customer.  Supplier shall ensure purchased products and services meet applicable requirements upon receipt.
6.1.7
    Production and Process Control (21 CFR 820.70; ISO 13458 6.2, 7.5.1.1, 7.5.1.2.1, 7.5.2): Supplier shall develop, conduct, control, and monitor production processes to ensure product conforms to specifications.
6.1.8
    Control of Nonconforming Product (21 CFR 820.90; ISO 13458 8.3): Supplier shall ensure material not conforming to specified requirements is appropriately identified, segregated to prevent inadvertent use, documented, evaluated, and dispositioned.
6.1.9
    Internal Audits (21 CFR 820.22; ISO 13458 8.2.2): Supplier shall establish procedures for quality audits and conduct such audits at planned intervals to ensure the quality system is in compliance with established requirements, is effectively implemented, and maintained.
6.1.10
    Corrective and Preventive Action (21 CFR 820.100; ISO 13485 8.5.2, 8.5.3): Supplier shall establish and maintain documented procedures for implementing corrective and preventive action.  Supplier shall take action to eliminate cause of nonconformities in order to prevent recurrence (corrective action) and determine action to eliminate causes of potential nonconformities to prevent occurrence (preventive action).
6.2
    Product Quality.  All Product delivered by Supplier hereunder shall meet the applicable Specifications and shall be manufactured at the Facility in accordance with the Applicable Laws.

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6.3
    Quality Control.  Prior to each shipment of Product, Supplier shall perform quality control testing procedures and inspections to verify that the Product to be shipped conforms fully to the applicable Specifications.  Each shipment of Product shall be accompanied by a certificate of analysis in a form acceptable to Company and describing all current requirements of the Specifications, results of test performed certifying that the Product supplied have been manufactured, controlled and released at the Facility in accordance with the Specifications and Applicable Laws.
6.4
    Inspections.  Supplier shall permit Company or its representatives and Company’s Notified Body under European Council Directive 93/42/EEC to inspect and audit at any time during Supplier’s normal business hours and work shifts, the facilities used, production lines, in‐process and finished goods and relevant books and records relevant to Company’s products in order to determine Supplier’s compliance with Applicable Laws and this Agreement.
6.5
    Recalls.  Any decision by Company to recall any Product shall be made by Company, provided, however, that if Supplier reasonably believes a recall may be necessary with respect to any Product provided under this Agreement, Supplier shall immediately notify Company in writing.  Company will promptly notify Supplier of any such decision to recall the Products.  Supplier shall bear all costs and expenses arising out or resulting from any recall of Products resulting from (a) Supplier’s breach of its representation and warranties, (b) Supplier’s gross negligence or willful misconduct, or (c) the Product otherwise presenting a possible safety risk.
6.6
    Records.  Supplier shall maintain a Device History Record (“DHR”) for all products delivered to Company.
6.6.1
    Content.  The DHR will contain the following:
a)
    Serial/Lot number and Quantity released for Shipment
b)
    A copy of the Certificate of Analysis for the associated serial/lot number
c)
    Production Records including Test and Inspection data and Component Traceability

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

d)
    Final Inspection Record including Completed Inspection and Test Form(s)
e)
    Identification of all Non-Conforming Material Reports, Deviations, and Corrective or Preventive Actions associated with the lot
6.6.2
    Maintenance.  Supplier shall maintain DHR’s for a period of ten (10) years from date of product shipment or forward original records to Company upon request.  Supplier will notify Company at least 30 days prior to destroying any records and will not destroy such records without approval from Company.
ARTICLE 7
     
REPRESENTATIONS AND WARRANTIES
7.1
    Product Warranties.  Supplier represents and warrants that:
7.1.1
    Specifications.  All Product supplied hereunder shall comply with the applicable Specifications and, if applicable, shall conform with the information shown on the certificate of analysis provided for the particular shipment above for a minimum of twenty-four (24) months;
7.1.2
    Applicable Laws.  The Facility, the manufacturing and supply activities contemplated herein, and all Product supplied hereunder shall comply with all Applicable Laws.  Without limiting the foregoing, at the time of delivery to Company, none of the Product shall be adulterated or misbranded within the meaning of the FDCA, as amended and in effect at the time of shipment.
7.1.3
    No Encumbrance.  Title to all Product provided to Company under this Agreement shall pass as provided in this Agreement, free and clear of any security interest, lien, or other encumbrance.
7.2
    Disclaimer.  EXCEPT AS PROVIDED IN THIS ARTICLE 6, NEITHER PARTY MAKES ANY WARRANTIES OR CONDITIONS (EXPRESS, IMPLIED, STATUTORY OR OTHERWISE) WITH RESPECT TO THE SUBJECT MATTER HEREOF AND EACH PARTY EXPRESSLY DISCLAIMS ANY SUCH ADDITIONAL WARRANTIES.
ARTICLE 8
     
TERM AND TERMINATION

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

8.1
    Term.  The term of this Agreement shall commence on the Effective Date and continue in full force until the 5th anniversary of the Effective Date, unless terminated earlier in accordance with the terms of this Agreement.
8.2
    Miramar shall have the right to terminate this Agreement at any time, in its sole discretion, by giving Distributor nine (9) months prior written notice of such termination.
8.3
    Termination for Breach.  Either Party may terminate this Agreement upon written notice in the event that the other Party shall have materially breached this Agreement, and such breach is not cured within thirty (30) days after receiving written notice of such breach.  Notwithstanding the foregoing, if during such thirty (30) day period, the allegedly breaching Party disputes that it has materially breached this Agreement, then the other Party shall not have the right to terminate this Agreement until it has been finally determined in accordance with the terms of this Agreement that the allegedly breaching Party has materially breached this Agreement, and such Party fails to comply herewith within thirty (30) days thereafter.
8.4
    Effect of Expiration or Termination.
8.4.3
    Rights and Obligations.  Termination or expiration of this Agreement shall not relieve a Party from any liability that, at the time of such termination or expiration, has already accrued to the other Party.
8.4.4
    Survival.  The provisions of Article 7 (Representations and Warranties), Article 9 (“Confidentiality and Intellectual Property”), Article 10 (Indemnification”), and Article 11 (“General”) of this Agreement shall survive the termination of this Agreement for any reason.
ARTICLE 9
     
CONFIDENTIALITY AND INTELLECTUAL PROPERTY
9.1
    Confidential Information.  Company may from time to time disclose to Supplier Confidential Information.  “Confidential Information” means any information disclosed by Company to Supplier that, if disclosed in tangible form, is marked “confidential” or with other similar designation to indicate its confidential or proprietary nature or, if disclosed orally, is indicated orally to be confidential or proprietary by the Party disclosing the information at the time of the disclosure and is confirmed in writing as confidential or proprietary by Company within forty-five (45) days after such disclosure.  Notwithstanding the foregoing or anything herein to the contrary, Confidential Information shall not include any information that, in each case as demonstrated by written 

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documentation: (a) was already known to Supplier. other than under an obligation of confidentiality, at the time of disclosure; (b) was generally available to the public or otherwise part of the public domain at the time of its disclosure to the Supplier; (c) became generally available to the public or otherwise part of the public domain after its disclosure and other than through any act or omission of the Supplier in breach of this Agreement; or (d) was subsequently lawfully disclosed to the Supplier by a person other than Company.
9.2
    Confidentiality.  Supplier shall hold and maintain in strict confidence all Confidential Information of Company.  Without limiting the foregoing, Supplier shall use or disclose the Confidential Information of Company, except as otherwise permitted by this Agreement or as may be necessary or useful to exercise its rights or perform its obligations under this Agreement.  Nothing contained in this Article shall prevent Supplier from disclosing any Confidential Information of the other Party to the extent required by court order; provided that if Supplier is so required by court order to make any such disclosure, other than pursuant to a confidentiality agreement, it will give reasonable advance notice to Company of such disclosure and will use its reasonable efforts to secure confidential treatment of such information.
9.3
    License.  Supplier acknowledges that the Products are the products of Company and Supplier shall not manufacture Products for, or supply Products to, any third party.  Company’s patents or other intellectual property rights, which cover the Products, are licensed to Supplier solely to manufacture the Products for supply to Company under this Agreement and for no other purpose.  Further, during the term of this Agreement and the two (2) year period commencing on the end of the term of this Agreement, Supplier will not, without Company’s express written consent develop, tool or sell any product that uses technology substantially similar to the unique technology of Company (i.e. microwave for dermatology) or substantially similar construction as the Product.
9.4
    Intellectual Property.  The Supplier acknowledges the Company’s exclusive ownership of all Intellectual Property Rights and ownership of the Product, including any modifications or improvements thereto (“Product Improvements”) and the tooling for the Product.  Any product improvements shall be the property of Company.  Supplier hereby assigns to Company all right, title and interest in and to all Product Improvements and all intellectual property rights therein.  Supplier shall promptly notify Company of all Product Improvements of which Supplier is aware and shall assist Company, at Company’s request and expense, to seek and maintain intellectual property protection for all Product Improvements.  As used herein, Product Improvements shall include all design information and all improvements, enhancements or changes to the Product.  Product Improvements excludes any improvements made by Supplier to its generally applicable manufacturing methods.  Supplier will deliver all tooling paid by the Company relating to the Products to Company within thirty (30) days of Company’s request.  Supplier acknowledges that Supplier received no right to, and Supplier covenants that Supplier will not, supply the Products to any third party.

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ARTICLE 10
     
INDEMNIFICATION
Supplier shall indemnify, defend, and hold harmless Company, its directors, officers, employees, agents, successors and assigns from and against all liabilities, expenses, and costs (including reasonable attorneys’ fees and court costs) arising out of any claim, complaint, suit, proceeding, or cause of action brought against any of them by a third party resulting from: (a) use of the Products; (b) the negligent or intentionally wrongful acts or omissions of Supplier; or (c) breach by Supplier of any of its representations and warranties under this Agreement.
ARTICLE 11
     
GENERAL
11.1
    Governing Law.  This Agreement shall be governed by, and construed and interpreted in accordance with, the laws of the United States and the State of California, without reference to conflict of laws principles and excluding the 1980 U.N. Convention on Contracts for the International Sale of Goods.
11.2
    Disputes.  In the event of any dispute or claim arising out of or in connection with this Agreement, or the performance, breach or termination thereof, either Supplier or Company may, by written notice to the other Party, have such dispute referred to the Chief Executive Officers (or equivalent) of Supplier and Company, for attempted resolution by good faith negotiations within thirty (30) days after such notice is received by such other Party.  If the Parties are unable to resolve such dispute within such thirty (30) day period, such dispute shall be finally settled by binding arbitration by Judicial Arbitration and Mediation Services, Inc. (JAMS) under its rules of arbitration, by three (3) arbitrators appointed in accordance with said rules, unless the Parties to the dispute have agreed to have only one (1) arbitrator.  The decision and/or award rendered by the arbitrator(s) shall be written, final and non-appealable, and judgment on such decision and/or award may be entered in any court of competent jurisdiction.  The arbitral proceedings and all pleadings and evidence shall be in the English language.  Any evidence originally in a language other than English shall be submitted with a certified English translation accompanied by an original or true copy thereof.  The place of arbitration shall be in the State of Delaware, U.S.A.  The costs of any arbitration, including administrative fees and fees of the arbitrator(s), shall be shared equally by the Parties to the dispute, unless otherwise determined by the arbitrator(s).  Each Party shall bear the cost of its own attorneys’ and expert fees.  The Parties agree that, any provision of applicable law notwithstanding, they will not request, and the arbitrator shall have no authority to award, punitive or exemplary damages against any Party.
11.3
    Implied Obligations.  This Agreement sets forth all of the rights and obligations of the Parties with respect to the subject matter hereof.

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11.4
    Assignment.  The rights and obligations of each Party under this Agreement may not be assigned or otherwise transferred to a third party without the prior written consent of the other Party.  Any assignment in violation of this Article shall be null and void.  Notwithstanding the foregoing, either Party may transfer or assign its rights and obligations under this Agreement, without the consent of the other Party, to a successor to all or substantially all of its business or assets relating to this Agreement whether by sale, merger, operation of law or otherwise if the assignee or transferee has agreed to be bound by the terms and conditions of this Agreement.
11.5
    Notices.  Any notice or report required or permitted to be given or made under this Agreement by either Party shall be in writing and delivered to the other Party at its address indicated in this Agreement (or to such other address as a Party may specify by notice under this Agreement) by courier or by registered or certified airmail, postage prepaid, courier service, or by facsimile, which facsimile is promptly confirmed, in writing, by registered or certified airmail, postage prepaid.  All notices shall be effective as of the date received by the addressee.
		
	If to Supplier:
	Broadband Wireless, LLC 
280 Greg St. 
Reno, NV  89502 
Attn: Jim McKee, President  
Fax: 775 329-5545

		
	If to Company:
	Miramar Labs 
2790 Walsh Avenue 
Santa Clara, CA  95051 
Attn: CEO 
Fax: 408-579-8795

11.6
    Limitation of Liability.  EXCEPT TO THE EXTENT SUPPIER MAY BE REQUIRED TO INDEMNIFY THE OTHER PARTY UNDER THIS AGREEMENT OR ANY WILLFUL BREACH OF THIS AGREEMENT, NEITHER PARTY WILL BE LIABLE TO THE OTHER PARTY OR ANY THIRD PARTY FOR ANY SPECIAL, CONSEQUENTIAL, EXEMPLARY, OR INCIDENTAL DAMAGES (INCLUDING LOST OR ANTICIPATED REVENUES OR PROFITS RELATING TO THE SAME), ARISING FROM ANY CLAIM RELATING TO THIS AGREEMENT, WHETHER SUCH CLAIM IS BASED ON CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE, EVEN IF AN AUTHORIZED REPRESENTATIVE OF SUCH PARTY IS ADVISED OF THE POSSIBILITY OR LIKELIHOOD OF SAME.
11.7
    Headings.  Headings included herein are for convenience only, do not form a part of this Agreement, and shall not be used in any way to construe or interpret this Agreement.

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11.8
    Non-Waiver.  Any waiver of the terms and conditions hereof must be explicitly in writing.  The waiver by either of the Parties of any breach of any provision hereof by the other shall not be construed to be a waiver of any succeeding breach of such provision or a waiver of the provision itself.
11.9
    Severability.  Should any section, or portion thereof, of this Agreement be held invalid by reason of any law, statute, or regulation existing now or in the future in any jurisdiction by any court of competent authority or by a legally enforceable directive of any governmental body, such section or portion thereof will be validly reformed so as to approximate the intent of the Parties as nearly as possible and, if unreformable, will be deemed divisible and deleted with respect to such jurisdiction, but the Agreement will not otherwise be affected.
11.10
    Independent Contractors.  The relationship of Company and Supplier established by this Agreement is that of independent contractors.  Nothing in this Agreement shall be construed to create any other relationship between Company and Supplier.  Neither Party shall have any right, power, or authority to assume, create or incur any expense, liability. or obligation, express or implied, on behalf of the other.
11.11
    Entire Agreement.  This Agreement, together with the Exhibits hereto, constitutes and contains the entire understanding and agreement of the Parties respecting the subject matter hereof and cancels and supersedes any and all prior and contemporaneous negotiations, correspondence, understandings and agreements between the Parties, whether oral or written, regarding such subject matter.  Notwithstanding the foregoing, to the extent the terms and conditions of the body of this Agreement conflict with the terms and conditions of any Exhibit hereto, the terms and conditions of the body of this Agreement shall govern.  No agreement or understanding varying or extending this Agreement shall be binding upon either Party, unless set forth in a writing which specifically refers to the Agreement that is signed by duly authorized officers or representatives of the respective Parties, and the provisions of the Agreement not specifically amended thereby shall remain in full force and effect.
11.12
    Counterparts.  This Agreement may he executed in counterparts, each of which shall be deemed an original, but which together shall constitute one and the same instrument.

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IN WITNESS WHEREOF, the Parties have caused their duly authorized representatives to execute this Agreement.
COMPANY        SUPPLIER
By:     /s/ B.E. Shay        By:     /s/ J. McKee    
Name: Bernard Shay        Name: James McKee    
Title: General Counsel        Title: President    

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

EXHIBIT A
PRODUCT DESCRIPTION
		
	1.
	PN0514-D Amplifier.  [***] meeting the specifications in Miramar Labs PN0514D Drawing.

		
	2.
	PN0514-E Amplifier.  [***] meeting the specifications in Miramar Labs PN0514E Drawing.

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

EXHIBIT B
PRICES
		
	A.
	For Delivery Schedules of [***], the following pricing shall apply:

		
	1.
	PN0514-D Amplifier:

In order quantities of [***], the price would be:     [***]
In order quantities of [***], the price would be     [***]
In order quantities of [***], the price would be     [***]
In order quantities of [***], the price would be     [***]
		
	2.
	PN0514-E Amplifier:

In order quantities of [***], the price would be:     [***]
In order quantities of [***], the price would be     [***]
In order quantities of [***], the price would be     [***]
In order quantities of [***], the price would be     [***]
		
	B.
	For Delivery Schedules of [***], the following pricing shall apply:

		
	1.
	PN0514-D Amplifier:

In order quantities of [***], the price would be:     [***]
In order quantities of [***], the price would be     [***]
In order quantities of [***], the price would be     [***]
In order quantities of [***], the price would be     [***]
		
	2.
	PN0514-E Amplifier:

In order quantities of [***], the price would be:     [***]
In order quantities of [***], the price would be     [***]
In order quantities of [***], the price would be     [***]
In order quantities of [***], the price would be     [***]

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

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