Exhibit 10.3
 
PLEXERA BIOSCIENCE LLC

CONTRIBUTION AGREEMENT
 
This Contribution Agreement (the “Agreement”) is effective as of July 1, 2007
(the “Effective Date”), by and among Plexera Bioscience LLC, a Delaware limited
liability company (the “Company”) and Lumera Corporation, a Delaware corporation
(the “Founder”).
 
Recitals

WHEREAS, Founder desires to transfer the business and the assets used in the
business of the bioscience division of the Founder (the “Business”) and certain
liabilities as set forth herein, in exchange for the Company’s sole membership
unit (the “Membership Unit”), and the Company desires to sell such unit to
Founder;
 
WHEREAS, the Founder and the Company shall enter into the Ancillary Agreements,
including an Intercompany Services Agreement dated as of the Effective Date (the
“Intercompany Services Agreement”) in order to effectuate the Contemplated
Transactions; and
 
NOW THEREFORE, in consideration of the mutual covenants and agreements contained
herein, the benefits to accrue to the parties hereto and other good and valuable
consideration, the receipt of which is hereby acknowledged, the parties agree as
follows:
 
1.  Issuance of Shares. The Company hereby agrees to issue and sell to the
Founder, and the Founder agrees to purchase, the sole Membership Unit (the
“Unit”) in the Company in exchange for the consideration described in the
recitals above.
 
2.  Transfer of Assets. The Founder hereby assigns, transfers, conveys and
delivers to the Company all of its right, title and interest in and to all of
the assets, other than the Excluded Assets (as defined below) used in and
relating solely to the Business, including, without limitation, all rights in
and to the business plan of the Founder as it relates to the Business
(collectively, the “Transferred Assets”), including, without limitation, the
assets listed on Schedule I and the following assets and property to the extent
not otherwise listed on Schedule I:
 
(a)    the Subject Intellectual Property, including, without limitation, all
Intellectual Property listed on Schedule I(a), goodwill associated therewith and
licenses and sublicenses granted in respect thereto and rights thereunder;
 
(b)    all rights under the contracts, instruments and other agreements listed
on Schedule I(b) (collectively, the “Contracts”);
 
(c)    all rights under all licenses, permits, authorizations, orders,
registrations, certificates, variances, approvals, consents and franchises used
or useful solely in connection with the operation of the Business or any pending
applications relating to any of the foregoing, including, without limitation,
all governmental permits, licenses, authorizations, approvals and consents
listed on Schedule I(c);
 

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(d)    all computer applications, programs and other software, whether in source
or object code and including all related data and documentation, including,
without limitation, operating software, network software, firmware, middleware,
design software, design tools, systems documentation and instructions listed on
Schedule I(d) other than such software as set forth in Section 3(b) below;
 
(g)    all rights to and in respect of any telephone numbers, websites, e-mail
addresses and Internet domain names used solely in the Business (including the
telephone numbers, websites, e-mail addresses and Internet domain names;
 
(h)    all cost information, sales and pricing data, customer lists, customer
prospect lists, supplier and reseller lists, supplier and reseller records,
customer and vendor data, correspondence and lists, product literature, artwork,
design, development and manufacturing files, vendor and customer drawings,
formulations and specifications, and quality records and reports used or useful
solely in the conduct of the Business; and
 
(i)    all business and financial records, books, ledgers, files, plans,
documents, correspondence, lists, plats, architectural plans, drawings,
notebooks, written technical information, data, specifications, research and
development information, engineering drawings, operating and maintenance
manuals, creative materials, advertising and promotional materials, marketing
materials, materials and analyses prepared by consultants and other third
parties, studies, reports, equipment repair, maintenance or service records,
whether written or electronically stored or otherwise recorded, used or useful
solely in the conduct of the Business.
 
3.  Excluded Assets. The Transferred Assets shall not include any of the
following:
 
(a) office furniture and fixtures, other than personal computers;
 
(b) all commercial software licensed according to standard terms; and
 
(c) assets necessary for continuing the Lumera Business.
 
4.  Assumed Liabilities. The Company hereby assumes, and agrees to pay, perform
and satisfy when due all of the liabilities and obligations of the Business,
including, but not limited to, the following liabilities and obligations
(collectively, the “Assumed Liabilities”):
 
(a) all liabilities and obligations under the Contracts arising or attributable
to the Business;
 
(b) all liabilities in respect of salaries, wages and other amounts payable to
employees of the Business;
 
(c) all liabilities payable on behalf of the Business; and
 
(c) the liabilities set forth on Schedule II.
 
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5.  Nontransferability of Units. The Unit acquired by the Founder pursuant to
this Agreement shall not be sold, transferred, pledged, assigned or otherwise
encumbered or disposed of except as provided below. Any purported transfer in
contravention of any of the provisions of this Agreement shall be null and void.
 
6.  Representations; Restrictive Legend.
 
a.  The Founder represents, warrants and covenants that: (i) the Unit is being
acquired for the Founder’s account for investment only, and not with a view to,
or for sale in connection with, any distribution of the Unit in violation of the
federal Securities Act of 1933, as amended (the “1933 Act”), or any rule or
regulation under the 1933 Act, (ii) the Founder has had such opportunity as the
Founder has deemed adequate to obtain from representatives of the Company such
information as is necessary to permit the Founder to evaluate the merits and
risks of the Founder’s investment in the Company, (iii) the Founder is able to
bear the economic risk of holding the Unit for an indefinite period, and (iv)
the Founder understands that (A) the Unit will not be registered under the 1933
Act; (B) the Unit cannot be sold, transferred or otherwise disposed of unless it
is subsequently registered under the 1933 Act or an exemption from registration
is then available; and (C) there is now no registration statement on file with
the SEC with respect to any securities of the Company and the Company has no
obligation or firm current plan to register the Unit under the 1933 Act.
 
b.  The Founder represents and warrants that it is entitled to retain the Unit
for its own account and that the Founder is not obligated (by contract,
applicable law or otherwise) to (i) sell, transfer, pledge, assign, encumber or
otherwise dispose of the Unit to, or (ii) share voting or dispositive power over
the Unit with, any third party.
 
c.  Any certificates representing the Unit shall have affixed thereto a legend
substantially in the following form, in addition to any other legends required
by applicable state law or by the by-laws of the Company, as in effect from time
to time:
 
“The membership unit represented by this certificate has not been registered
under the Securities Act of 1933, as amended, and may not be transferred, sold,
or otherwise disposed of in the absence of an effective registration statement
with respect to the membership unit evidenced by this certificate, filed and
made effective under the Securities Act of 1933, or an opinion of counsel
satisfactory to the Company to the effect that registration under such Act is
not required.”
 
7.  Representations and Warranties of the Founder.
 
The Founder makes the following representations and warranties to the Company:
 
a.  Due Organization. The Founder is a Delaware corporation, and is validly
existing and in good standing under the laws of the jurisdiction of its
organization.
 
b.  Authorization. The execution, delivery and performance by the Founder of
this Agreement and each Ancillary Agreement to which it is (or will be) a party
and the consummation of the Contemplated Transactions are within the power and
authority of the Founder and have been duly authorized by all necessary action
on the part of the Founder. This Agreement and each Ancillary Agreement to which
it is (or will be) a party (i) has been (or in the case of Ancillary Agreements
to be entered into after the Effective Date, will be) duly executed and
delivered by the Founder and (ii) is (or in the case of Ancillary Agreements to
be entered into after the Closing, will be) a legal, valid and binding
obligation of the Founder, enforceable against the Founder in accordance with
its terms except as the enforceability thereof may be limited by bankruptcy,
insolvency, moratorium or other laws affecting the enforcement of creditors’
rights or the availability of equitable remedies. 
 
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c.  No Conflicts; Approvals. No action by (including any authorization, consent
or approval), or in respect of, or filing with, any Governmental Authority is
required for, or in connection with, the valid and lawful (i) authorization,
execution, delivery and performance by the Founder of this Agreement and each
Ancillary Agreement to which it is (or will be) a party or (ii) the consummation
of the Contemplated Transactions by the Founder. No provision of any applicable
Legal Requirement and no Government Order will prohibit the consummation of the
Contemplated Transactions.
 
d.  Non-Contravention. Neither the execution, delivery or performance of this
Agreement or any Ancillary Agreement to which it is (or will be) a party, nor
the consummation by the Founder of the obligations contemplated hereby or
thereby (i) will violate any Legal Requirement applicable to the Founder, (ii)
result in the creation or imposition of an encumbrance upon, or the forfeiture
of, any Transferred Asset, or (iii) result in a breach or violation of, or
default under, the Organizational Documents of the Founder.
 
8.  Representations and Warranties of the Company.
 
a.  Due Organization. The Company is a Delaware limited liability company, and
is validly existing and in good standing under the laws of the jurisdiction of
its organization.
 
b.  Authorization. The execution, delivery and performance by the Company of
this Agreement and each Ancillary Agreement to which it is (or will be) a party
and the consummation of the Contemplated Transactions are within the power and
authority of the Company and have been duly authorized by all necessary action
on the part of the Company. This Agreement and each Ancillary Agreement to which
it is (or will be) a party (i) has been (or in the case of Ancillary Agreements
to be entered into after the Effective Date, will be) duly executed and
delivered by the Company and (ii) is (or in the case of Ancillary Agreements to
be entered into after the Closing, will be) a legal, valid and binding
obligation of the Company, enforceable against the Company in accordance with
its terms except as the enforceability thereof may be limited by bankruptcy,
insolvency, moratorium or other laws affecting the enforcement of creditors’
rights or the availability of equitable remedies.
 
c.  No Conflicts; Approvals. No action by (including any authorization, consent
or approval), or in respect of, or filing with, any Governmental Authority is
required for, or in connection with, the valid and lawful (i) authorization,
execution, delivery and performance by the Company of this Agreement and each
Ancillary Agreement to which it is (or will be) a party or (ii) the consummation
of the Contemplated Transactions by the Company. No provision of any applicable
Legal Requirement and no Government Order will prohibit the consummation of the
Contemplated Transactions.
 
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d.  Non-Contravention. Neither the execution, delivery or performance of this
Agreement or any Ancillary Agreement to which it is (or will be) a party, nor
the consummation by the Company of the obligations contemplated hereby or
thereby (i) will violate any Legal Requirement applicable to the Company, (ii)
result in the creation or imposition of an encumbrance upon, or the forfeiture
of, any Transferred Asset, or (iii) result in a breach or violation of, or
default under, the Organizational Documents of the Company.
 
9.  Definitions.
 
a.  “Agreement” has the meaning set forth in the introductory paragraph hereof.
 
b.  “Ancillary Agreements” means the Bill of Sale, Patent Assignment, Marks
Assignment, Assignment and Assumption Agreement, Contribution Note, Services
Note and Intercompany Services Agreement.
 
c.  “Applicable Law” means, with respect to any party to this Agreement, all
domestic or foreign federal, state or local statute, law, ordinance, rule,
administrative interpretation, regulation, order, writ, injunction, directive,
judgment, decree, policy, guideline or other Legal Requirement (whether
legislatively, judicially, or administratively promulgated) applicable to such
party or its Affiliates, properties, assets, officers, directors, employees or
agents.
 
d.  “Business” has the meaning set forth in the Recitals hereof.
 
e.  “Business Day” means any day that is not a Saturday, Sunday or other day on
which banks are authorized to close in the State of Washington.
 
f.  “Contemplated Transactions” means, collectively, the transactions
contemplated by this Agreement, including (a) the sale and purchase of the
Transferred Assets and (b) the execution, delivery and performance of the
Ancillary Agreements.
 
g.  “Equipment” means machines, devices, and transmission facilities used in
information processing, such as computers, word processors, terminals,
telephones, and cables used in the Business.
 
h.  “Government Order” means any order, writ, judgment, injunction, decree,
stipulation, ruling, determination or award entered by or with any Governmental
Authority.
 
i.  “Governmental Authority” means any United States federal, state or local or
any foreign government, or political subdivision thereof, or any multinational
organization or authority or any authority, agency or commission entitled to
exercise any administrative, executive, judicial, legislative, police,
regulatory or taxing authority or power, any court or tribunal (or any
department, bureau or division thereof), or any arbitrator or arbitral body.
 
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j.  “Intellectual Property” means all embodiments of, and the entire right,
title and interest in and to all proprietary rights of every kind and nature in,
including all rights and interests pertaining to or deriving from, any of: (a)
patents, patent applications, patent disclosures, copyrights, copyrightable
works of expression, derivative works thereof, mask work rights, technology,
know-how, processes, trade secrets, algorithms, inventions, innovations,
information (including ideas, research and development, know-how, formulas,
compositions, processes and techniques, data, designs, drawings, specifications,
customer lists, supplier lists, licensor lists, pricing and cost information,
business and marketing plans and proposals, documentation and manuals), works,
proprietary data, databases, formulae and research and development data; (b)
distinctive identifiers, corporate names, trademarks, trade names, service
marks, service names, brands, trade dress and logos, together with all
translations, adaptations, derivations and combinations thereof, and the
goodwill and activities associated therewith and all improvements thereto; (c)
all computer software (whether in source or object code and including all
related data and documentation); (d) any and all registrations, applications,
recordings, licenses, common-law rights and contracts relating to any of the
foregoing; (e) all copies and tangible embodiments thereof, in any and all forms
and mediums now known or hereinafter created; and (f) any and all legal actions
and rights to sue at law or in equity for any past or future infringement or
other impairment of any of the foregoing, including the right to receive all
proceeds and damages therefrom, and all rights to obtain renewals, reissuances,
revisions, reexaminations, continuations, divisions or other extensions of legal
protections pertaining thereto.
 
k.  “Legal Requirement” means any United States federal, state or local or
foreign law, statute, standard, ordinance, code, rule, regulation, resolution or
promulgation, or any Government Order, or any license, franchise, permit or
similar right granted under any of the foregoing, or any similar provision
having the force or effect of law.
 
l.  “Lumera Business” means the business conducted by the Lumera Corporation
other than the business conducted by its bioscience division.
 
m.  “Organizational Documents” means, with respect to any Person (other than an
individual), (a) the certificate or articles of incorporation or organization
and any joint venture, limited liability company, operating or partnership
agreement and other similar documents adopted or filed in connection with the
creation, formation or organization of such Person and (b) all by-laws, limited
liability company agreements, voting agreements and similar documents,
instruments or agreements relating to the organization or governance of such
Person, in each case, as amended or supplemented.
 
n.  “Person” means any individual or corporation, association, partnership,
limited liability company, joint venture, joint stock or other company, business
trust, trust, organization, Governmental Authority or other entity of any kind.
 
o.  “Subject Intellectual Property” means all Intellectual Property owned or
licensed by the Founder that is related to or arose from the Business.
 
10.  Ancillary Agreements. Founder shall execute and deliver to the Company a
Bill of Sale in substantially the form of Exhibit A (“Bill of Sale”), Patent
Assignment in substantially the form of Exhibit B (“Patent Assignment”), Marks
Assignment in substantially the form of Exhibit C (“Marks Assignment”) and
Assignment and Assumption Agreement in substantially the form of Exhibit D
(“Assignment and Assumption Agreement”), and such other instruments of
conveyance and assignment as are reasonably requested by the Company to vest in
the Company title to the Transferred Assets.
 
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11.  Further Assurances. Each party hereto shall execute, deliver, file and
record, or cause to be executed, delivered, filed and recorded, such further
agreements, instruments and other documents, and take, or cause to be taken,
such further actions, as the other party hereto may reasonably request as being
necessary or advisable to effect or evidence the transactions contemplated by
this Agreement.
 
12.  Transition Services. Founder shall supply certain transition services to
the Company in such manner as set forth in the Intercompany Services Agreement,
which is attached hereto as Exhibit E. Nothing herein shall affect the right of
the Company to terminate the Founder’s services as provided in the Intercompany
Services Agreement or be deemed a waiver or modification of any provision
contained in the Intercompany Services Agreement or any other agreement between
the Founder and the Company.
 
13.  Succession and Assignment. Subject to the immediately following sentence,
this Agreement will be binding upon and inure to the benefit of the parties
hereto and their respective successors and permitted assigns, each of which such
successors and permitted assigns will be deemed to be a party hereto for all
purposes hereof. No party may assign, delegate or otherwise transfer either this
Agreement or any of its rights, interests, or obligations hereunder without the
prior written approval of the other party.
 
14.  Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware (without giving any effect to
conflicts of laws principles thereof that would apply the laws of another
jurisdiction).
 
15.  Amendment. No change, modification or amendment of this Agreement shall be
valid or binding on the parties unless such change or modification shall be in
writing signed by the party or parties against whom the same is sought to be
enforced.
 
[Remainder of page intentionally left blank.]

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IN WITNESS WHEREOF, the parties hereto have caused this Contribution Agreement
to be duly executed as of the date first hereinabove written.
 

      The Company: Plexera Bioscience LLC  
 

 
 
      By:   

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  Name:  

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  Title:  

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      The Founder Lumera Corporation  
 

 
 
      By:   

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  Name:  

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  Title:  

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[Signature Page to Contribution Agreement]

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Schedule I
Transferred Assets

The Transferred Assets shall include:
 
Fixed Assets, net of Depreciation
       
$
330,726.22
                 
Prepaid Expenses
         
26,430.74
                 
            Subscriptions
   
12,275.00
       
            Prepaid Software Expense
   
6,155.74
       
            Other Prepaid Expenses
   
8,000.00
                                 
$
357,156.96
 

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Schedule I(a)
Intellectual Property
 
Patents
 
Status
 
Filing Date
 
Application Number
 
Patent Number
                 
A Method of Chemical Analysis Using Microwells
               
Patterned from Self Assembled Monolayers and
 
Filed
 
6/17/2003
 
10/463,174
   
Substrates
               
Fiber optic Bio-Sensor
 
Filed
 
7/1/2005
 
11/174,123
   
Plasmon Resonance Biosensor and Method
 
Filed
 
11/18/2005
 
11/282,272
   
Microarrays Having Multi-functional, Compartmentalized
 
Filed
 
3/15/2006
 
11/375,885
   
Analysis Areas and Methods of Use
               
MEMS Micromirror Surface Plasmon Resonance
               
Biosensor and Method
 
Filed
 
6/7/2006
 
11/422,698
   
Surface Plasmon Resonance Spectrometer with an
               
Actuator Driven Angle Scanning Mechanism
 
Filed
 
11/21/2006
 
11/562,197
   
Highly Stable Plasmon Resonance Plates, Microarrays,
               
and Methods
 
Filed
 
12/6/2005
 
11/296,659
   
Label Free Kinase Assay and Reagents
 
Filed
 
4/3/2007
 
60/909,885
   
Microfluidic Apparatus for Wide Area Microarrays
 
In Preparation
           
Method for Uniform Analyte Fluid delivery to Microarrays
 
In Preparation
                                 
Lisensed IP from Helix/Sensium:
                             
Biosensor device and method
 
Issued
 
4/24/1997
     
6,165,335
Biosensor device and method
 
Issued
 
7/27/2000
     
6,461,490
Biosensor device and method
 
Issued
 
5/24/2000
     
6,478,939
Method and device for integrated protein expression,
               
purification and detection
 
Filed
 
8/22/2002
 
10/225,788
   
Protein interaction method and composition
 
Filed
 
4/23/2003
 
10/422,561
   

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Schedule I(b)

Signed Agreements 

1.  
Dyax Corp. - Materials Transfer Agreement between Dyax Corp. and Lumera
Corporation, entered in as of June 20, 2007

2.  
Institute for Systems Biology - Collaborative Research Agreement between the
Institute for Systems Biology and Lumera Corporation, entered into as of June 1,
2006 and First Amendment to the Collaborative Research Agreement between Lumera
Corporation and the Institute for Systems Biology, effective as of June 1, 2007

3.  
Medical University of South Carolina - Collaborative Research Agreement between
the Medical University of South Carolina and Lumera Corporation, entered into as
of January 24, 2006 and First Amendment to Collaboration Agreement between
Lumera Corporation and the Medical University of South Carolina, effective as of
April 25, 2007

4.  
Zyomyx, Inc. - Development Services Agreement between Lumera Corporation and
Zyomyx Inc., entered into as of April 19, 2007

 
Schedule I(c)
Licenses

1.  
Sensium Technologies, Inc. - License Agreement between Sensium Technologies Inc.
and Lumera Corporation, made as of January 20, 2005

 
Schedule I(d)
Computer Applications and Software

None.

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Schedule II

Assumed Liabilities

The Assumed Liabilities shall include:

Accounts Payable and Accruals
         
(240,273.90
)
Accounts Payable
   
(20,596
)
     
Accrued Liabilities
             
Trade A/P
   
(88,325.27
)
     
Bonus
   
(65,551.80
)
     
Legal
   
(5,800.00
)
     
License
   
(50,000
)
     
Warranty
   
(10,000
)
                     
Accumulated Deficit, 4/03 thru 6/07
         
16,428,612.56
 
2003
   
179,300.00
       
2004
   
829,665.78
       
2005
   
4,369,905.27
       
2006
   
6,965,598.60
       
2007, through 6/30
   
4,084,142.91
       

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Exhibit A
 
BILL OF SALE

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Exhibit B
 
PATENT ASSIGNMENT

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Exhibit C

MARKS ASSIGNMENT

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Exhibit D

ASSIGNMENT AND ASSUMPTION AGREEMENT

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Exhibit E
Intercompany Services Agreement
 

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