definiens: Bare Probe 3 . Section 2.18 is amended to read as follows : Human In Vitro Diagnostics Field ( UHIVD Field " ) means products and processes for the measurement of attributes, characteristics . diseases . traits or other conditions of a human being for the medical management of that human being . " OOCS0C\9 14811 v ! \l1@tOOOO 4 . Section 5.04{a ) 1S amended, clIective for all Net Sales after September 30, 200L to read as follows ; " 5.04 ( a ) Percentage Rovalties . ABGwiLl pay to Epoch percentage royalties on the Net Sales ofllcensed Products sold or otherwise disposed of under the license granted under Sections 4,01 alld 4.02 of this AgreemenL rot purposes of determining the royally payable wHh respect to a given llcensed Product, Licensed Products ( other than algorithms and related software ) shall be classit1cd into three categories as j'uHuws : Category 1 Category 2 Category 3 A Licensed Product comprising an MGB Oligonucleotide ( with or without a lluoresccnt label and / nr a l1uorcscent quencher ) for which an ABO customer specifics primer ( if any ) and probe sequences ( except in the e, lse of certain reorders described under Category 2 belmv ) . Bare Probes \vilL be cOllSldered Category 1 Licensed Products " ABCi 's current TagManTM .MOB Probes product is an example of a Calegol ) 1 Licensed Product A Licensed Product comprising an MGB Oligonucleotide ( with orwlthouta fluorescent label and/or a l1uorescent quenche : r ) fur which an ABG customer spcctncs a target sequence to ABG, and ABG detennilles primer and probe sequences . 111 are·ordcr siluation where the customer provides prime ) " and probe sequences, wluch prirner and probe sequences \Vere originaHy determined by ABO as part of an original order, then such reordered Licensed Product shall also be deemed a Category 2 Licensed Product . AB 's eUfrent .. Assay - by ~ Design " product is an example of a Category 2 Licensed Product A Licensed Product comprising an MGB Oligonucleotide ( ' Nitll or without a fluorescentlabcl and/or a l1uorescent quellcher ) for which an ABO customer chooses from a menu ofprc ~ dcfiJ1cd primers and probes, and ABG chooses a tafget and dctennincs primer and probe sequences . Also included within the definition ofCr1tcgory 3 Licensed Products arc aU microfluidic devices containing or packaged with MOB Oligonucleotides, regardless of who provides primer, probe or target sequences . AB 's current product is an example of a Category 3 Licensed Product The applicablcroyalty rates for each Licensed Product for all Net Sales fron ] October 1, 2001 to December 31, 2002 shall be as foUows : Category i Licensed Products covered by a Valid Claim Category 2 Licensed Products covered by a Valid . Claim Category 3 Licensed Products covered by a Valid Claim Categot ) ' I Licensed Products not covered by a VahdClaim fXKSOC\91 t;J { 11 iii " 17631 : U))60 Ottegory 2 Licensed Products not covered by a Valid Claim Category 3 Licensed Products not covered by a Valid Claim Algorithms and related software The applicable royalty rates tor each Licensed Product for aU Net Sales commencing January I, 2()03 shaU be as follows : Category 1 Licensed Products covered by a Valid Claim Category 2 Licensed PI'oducts covered by a VaLid Claim Category 3 Licensed Products covered by a Valid Claim Category I LicensedProdncts not covered by a Valid Claim Category 2 Licensed Products not covered bya Valid Claim Category 3 Licensed Products notcovcrcd by a Valid Claim Algorithms and related soHware No percentage royalties wiHbc awed under this Scction 5,04 ( a ) forthe s ~ lle by ABO of any Category 1, 2 or 3 Licensed Products not covered bya Valid Claim in the everiuhat ( i ) ' he Licensed Know - How becomes publicly available, ( il ) ABG is placed at a commercial disadvantage as a result of such knawIDhow becoming : publicly available, and ( iii ) such know - how was not made publicly aval1able by ABG . In addition . no percentage royalties will be owed under this Section 5.04(a ) for the salt by ABG of any Bare Probes purchased by A8 G from Epoch purSlHHlt to Section 6.02."5.04(b ) Quarterlv Minimum Royalties . Notwithstanding the foregoing :, ABG shan pay minimum quarterly royalties ( each a ) with respect to each calendar quarter as follows : FOR THE CALENDArs QUARTER ENDlNG December 3 - t, 2002 March 3 L 2003 JUl1e 3Q, 2(0 ) September 30, 2003 December 31, 2003 March 3 L 2004 June 30,2004 September 30, 2()04 December 3 L 2004 March 31, 2005 June 30 . 2005 September 30, 2005 QUARTERLY MINIMUM ROYALTY Total : Total Total If lotal royalties paid by ABG under Seetinn : i04{a ) above for Net Safes in any applicable calendar quarter are less than the QUa!1erlyMiniinum Royalty for such quarter, th < m ABG shall pay to Epoch the difference between actual royalties paid and the Qum1erlyMinimum Royalty within forty ~ five ( 45 ) days after the end of each sucll caicndat quarter, alollg \xiith the paYli1ent and statement under Section 5.06 for such quarter . " nm : sm>'J14f1 ! Iv j\11C1SJ)(l(J ' 6, Section 6.02 is amended, effective October L 2002, to read us follows : '' ' 6.02 PurclHlses of Btlre Probes . Subject to the tenus and conditions ofthis Agreement, ABG may purchase Bare Probes from Epoch _ " The Parties acknowledge that pursuant to this Section 6, after October 1, 2002, i\BG shall have no obligation to purchase Bare Probes from Epoch pursuant [ 0 Section 6,02 of the CoHaboration Agreement 7 . The Parties acknowledge that the terms ofScction6.02 of the Collaboration Agreement and the First Side Agreement shall remam in eftccl until September 30, 2002, and that ABG shaH pay to Epoeh all ( as defined in the First Side i\greement ) with respect to Bare Probe purchase obligations lor all quarters through the quarter ell ding September 30, 2002, with the last such payment due by September 30, 2002 ( i.e., fur example, ftssumtng that ABG has purchased no Bare Probes from Epoch during the period of 1,2001 to September 30, 2002, ABG shall have paid Epoch an ' Remainder Payments tor such period ), No Remainder Payments will be to Epoch after September 30, 2002