Document:

Letter Agmt. Re: Closing of Term Loan with Lakeside Management Financial, LLC

 Exhibit 10.17 
 February 28, 2003 
 Applied Precision, LLC 
 1040 12th Avenue NW 
 Issaquah, WA 98027-8929 
  

	 	Re:	Closing of Term Loan 

 Gentlemen: 
 We refer to the Secured Promissory Note dated as of even date herewith made payable to the undersigned in the original principal amount of $522,215.00
(the “Note”). All capitalized terms used without definition herein shall have the meanings ascribed to such terms in the Note. 
 Borrow agrees to pay Lakeside a closing fee in the amount of $10,000. 
 The Note provides that an Event of Default under and as
defined in the SVB Credit Agreement is also an Event of Default under the Note. The undersigned acknowledges that it is not in compliance with the Minimum Tangible Net Worth and EBITDA covenants under the SVB Credit Agreement on the date hereof (the
“Existing Defaults”), but that the Existing Defaults shall not be an Event of Default under the Note unless and until SVB accelerates the indebtedness or exercises remedies under the SVB Credit Agreement. 
 If you are in agreement with the foregoing, please so indicate by executing this letter in the space provided for that purpose below. 
  

			
	Very truly yours,
	
	Lakeside Management Financial, L.L.C.
		
	By:	 	/s/ Ronald C. Seubert
	Name:	 	Ronald C. Seubert
	Title:	 	Manager

 Accepted and agreed as of the first date written above. 
  

			
	Applied Precision, LLC
		
	By:	 	 Applied Precision Holdings,
 LLC, its sole
member

		
	By:	 	/s/ Ronald C. Seubert
	Name:	 	Ronald C. Seubert
	Title:	 	Manager, CEOAmendment to Secured Promissory Note with Lakeside Management Financial, LLC

 Exhibit 10.18 
 Lakeside Management Financial, LLC 
 Amendment to Secured Promissory Note 
 Reference is made to the Secured Promissory Note between Applied Precision LLC and Lakeside Management Financial, LLC dated February 28th, 2003, in
the amount of $522,215.00 (the “Note”). 
 The Note provided that principal was to be paid in nineteen monthly installments of
principal payable on the first day of each month (commencing March 1, 2003), with the first eighteen installments of principal being in the amount of $20,085 and the nineteenth and final installment of all unpaid principal due on
October 1, 2004. 
 The parties hereby agree that beginning on October 1, 2004 principal payments shall continue to be made on the
first day of each month in the amount of $20,085 through March 1, 2005, with the final payment of all unpaid principal due on April 1, 2005. 
 All other terms and conditions of the Note and the related Security Agreement are unchanged, and shall continue in full force and effect. 
 Applied Precision, LLC 
  

			
	By:	 	 Applied Precision Holdings, LLC, its
 sole
member

		
	By	 	/s/ Ronald C. Seubert
	Title	 	CEO
	Date	 	April 23, 2004

 Lakeside Management Financial, LLC 
  

			
	By:	 	/s/ Ronald C. Seubert
	Title	 	CEO
	Date	 	April 23, 2004Addendum to Secured Promissory Note with Lakeside Management Financial, LLC

 Exhibit 10.19 
 Lakeside Management Financial, LLC 
 ADDENDUM TO 
 SECURED PROMISSORY NOTE 
 On
February 28, 2003, Lakeside management Financial, LLC (“Lakeside”) loaned Applied Precision LLC (the “Borrower”) $522,215.00 pursuant to a Secured Promissory Note dated February 28, 2003 (the
“Original Note”) at 9.0% interest with a payment schedule of nineteen monthly installments of $20,085 commencing on March 1, 2003 (the “Original Loan”). The Original Loan has $180,767.01 in outstanding
principal as of August 31, 2004. 
 Lakeside and the Borrower desire to memorialize certain additional indebtedness owed by Borrower to
Lakeside pursuant to this Addendum (the “New Loans”). Except as specifically set forth herein, the New Loans shall be governed by the same terms and conditions as the Original Loan, as amended from time to time. This Addendum
together with the Original Note attached hereto as Exhibit A shall evidence the New Loans. 
 The first such New Loan is $150,000 in
principal amount (of which $131,375 was loaned on February 12th, 2004 and $18,625 was loaned on March 10th, 2004) at 12% per annum with a payment schedule of 24 monthly installments of $6,250, and a final payment due February 1, 2006.
Interest during an Event of Default shall be 12% per annum. This New Loan has $113,558.36 in outstanding principal as of August 31, 2004. 
 The second such new Loan is $300,000 in principal amount loaned September 9, 2004 at 25% per annum with a maturity date of October 22, 2004, with all accrued interest and principal payable at maturity. Interest during an
Event of Default shall be 25% per annum. 
  

			
	 Applied Precision, LLC

		
	 By:
	 	 Applied Precision Holdings, LLC, its
 sole
member

		
	 By
	 	 /s/ Ronald C. Seubert

	 Title
	 	 CEO

  

			
	 Agreed and acknowledged:

	
	 Lakeside Management Financial, LLC

		
	 By:
	 	 /s/ Ronald C. Seubert

	 Title:
	 	 ManagerSecurity Agreement with Lakeside Management Financial, LLC

 Exhibit 10.20 
 SECURITY AGREEMENT 
 THIS SECURITY AGREEMENT (“Agreement”) is made and entered into as of
February 28, 2003, by Applied Precision, LLC, a Delaware limited liability company (“Borrower”), for the benefit of Lakeside Management Financial, LLC (“Lender”). 
 R E C I T A L S: 
 A. Concurrently with the execution hereof, Borrower has
executed and delivered to Lender a Secured Promissory Note in the original principal amount of $522,215 (the “Note”) to evidence a loan in such amount made by Lender to Borrower (the “Loan”). 
 B. Borrower wishes to grant to Lender a security interest in all its assets as security for all the Secured Obligations (as defined below), which
security interest will be subordinate in certain respects to the security interest of Silicon Valley Bank (the “Bank”) pursuant to that certain Mutual Subordination Agreement dated as of even date herewith, between Lender and the Bank (the
“Intercreditor Agreement”). 
 NOW, THEREFORE, in order to induce Lender to make the Loan, Borrower agrees as follows: 

ARTICLE I.    DEFINITIONS 
 The
terms “Account,” “Chattel Paper,” “Deposit Account,” “Document,” “Electronic Chattel Paper,” “Equipment,” “Financial Assets,” “General Intangible,” “Goods,”
“Health-Care-Insurance Receivables,” “Instrument,” “Inventory,” “Investment Property,” “Letter of Credit Rights,” “Payment Intangible” and “Supporting Obligation,” shall have the
meanings defined in the Uniform Commercial Code as enacted in Washington, as amended from time to time. 
 When used in this Agreement, the
following terms shall have the following meanings: 
 “Account Debtor” means the party who is obligated on or under any Account,
Chattel Paper or General Intangible. 
 “Collateral” means all property, real, personal and mixed, tangible and intangible,
wherever located, now owned or hereafter acquired by Borrower, or in which Borrower has or later obtains an interest, and all products, profits, rents and proceeds of such property, including but not limited to Accounts, Chattel Paper (including
Electronic Chattel Paper), Deposit Accounts, Documents, Equipment, Financial Assets, General Intangibles (including Payment Intangibles), Goods, Health-Care-Insurance Receivables, Instruments, Inventory, 

  

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Investment Property, Letter of Credit Rights, Supporting Obligations, Patents, Copyrights and Trademarks, all claims for tax refund, whether now existing or
hereafter arising, of Borrower against any city, county, state or federal government or any agency or authority or other subdivision thereof, and the proceeds thereof and all of Borrower’s drawings, designs, blueprints and sketches, used or
usable in connection with Borrower’s business; all customer lists, ledger and account cards, computer tapes, discs and printouts, and books and records of Borrower; and any and all other properties and assets of Borrower of whatever nature,
tangible or intangible, wherever located and whether now or hereafter existing. 
 “Copyrights” means any copyrights, rights and
interests in copyrights, works protectable by copyrights, copyright registrations and copyright applications, including, without limitation, the copyright registrations and the applications listed on Schedule I attached hereto, and all renewals of
any of the foregoing, all income, royalties, damages and payments now and hereafter due and/or payable under or with respect to any of the foregoing, including, without limitation, damages and payments for past, present and future infringements of
any of the foregoing and the right to sue for past, present and future infringements of any of the foregoing. 
 “Credit Agreement”
means the Loan and Security Agreement among Borrower, Applied Precision Holdings, LLC and Silicon Valley Bank dated as of September 30, 2002, as amended from time to time. 
 “Event of Default” is defined in Section 6.1 hereof. 
 “Patents” means any patents and patent applications, including, without limitation, the inventions and improvements described and claimed therein, all patentable inventions and those patents and patent
applications listed on Schedule II attached hereto, and the reissues, divisions, continuations, renewals, extensions and continuations-in-part of any of the foregoing, and all income, royalties, damages and payments now or hereafter due and/or
payable under or with respect to any of the foregoing, including, without limitation, damages and payments for past, present and future infringements of any of the foregoing and the right to sue for past, present and future infringements of any of
the foregoing. 
 “Secured Obligations” means all obligations and liabilities of every nature of Borrower now or hereafter existing
under or arising out of or in connection with the Note and this Agreement, whether for principal, interest (including without limitation interest that, but for the filing of a petition in bankruptcy with respect to Borrower, would accrue on such
obligations), fees, expenses, indemnities or otherwise, whether voluntary or involuntary, direct or indirect, absolute or contingent, liquidated or unliquidated, whether or not jointly owned with others, and whether or not from time to time
decreased or extinguished and later increased, created, or incurred, and all or any portion of such obligations or liabilities that are paid, to the extent all or any part of such payment is avoided or recovered directly or indirectly from Lender as
a preference, fraudulent transfer, or otherwise, all attorneys’ fees and other costs and expenses incurred by Lender in connection with the enforcement of the 

  

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rights and remedies reserved in the Note and this Agreement, through all appeals, and all obligations of every nature of Borrower now or hereafter existing
under this Agreement. 
 “Trademark” means (a) any trademark, trade name, corporate name, company name, business name,
fictitious business name, trade style, service mark, logo or other source or business identifier, including, without limitation, any of the aforementioned items referred to in Schedule III attached hereto, and the goodwill associated therewith, now
existing or hereafter adopted or acquired, any registration or recording thereof, and any application in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States or of any
state thereof or any other country or any political subdivision thereof, or otherwise, and (b) all renewals thereof. 
 ARTICLE
II.    GRANT OF SECURITY INTEREST 
  

	 	2.1	General Grant of Interest 

 As security for the
payment and satisfaction of the Secured Obligations, Borrower hereby grants to Lender a continuing security interest in and assigns to Lender all of Borrower’s right, title and interest in the Collateral and all products, profits, rents and
proceeds thereof. 
  

	 	2.2	Limitation on Lender’s Rights 

 Lender
acknowledges the liens and security interests and other rights granted hereunder are subject to the Intercreditor Agreement. 
 ARTICLE
III.    COVENANTS OF BORROWER 
 Borrower shall fully perform each of the covenants set forth below. 
  

	 	3.1	Obligations to Pay 

 (a) Borrower shall pay to
Lender, as and when due and in full, all amounts payable by Borrower pursuant to the Note; and 
 (b) Borrower shall pay and reimburse Lender
for other Secured Obligations including reasonable attorneys’ fees and legal expenses incurred in connection with the exercise by Lender of any of its rights or remedies under this Agreement or the Note. 
  

	 	3.2	Performance 

 Borrower shall fully perform in a
timely fashion every covenant, agreement and obligation set forth in the this Agreement and the Note. 
  

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	 	3.3	Further Documentation 

 Upon the written request of
Lender, Borrower will promptly execute and deliver such further instruments and documents and take such further actions as Lender may deem desirable to obtain the full benefits of this Agreement and of the rights and powers herein granted,
including, without limitation, filing of any financing statement under the Uniform Commercial Code, execution of assignments of General Intangibles, delivery of appropriate stock or bond powers, transfer of Collateral (other than Inventory, Accounts
and Equipment) to Lender’s possession if necessary to perfect Lender’s security interest therein. Borrower hereby authorizes Lender to file any such financing statement without the signature of Borrower to the extent permitted by
applicable law, and to file a copy of this Agreement in lieu of a financing statement. 
  

	 	3.4	Filing Fees 

 Borrower shall pay to Lender all costs
of filing this Agreement with the U.S. Patent and Trademark Office and any financing, continuation or termination statement with respect to the security interests granted herein. 
  

	 	3.5	Maintenance of Records 

 Borrower shall keep and
maintain at its own cost and expense satisfactory and complete records of the Collateral including but not limited to a record of all payments received and all credits granted with respect to the Collateral and all other dealings with the
Collateral. Borrower shall deliver and turn over to Lender all books and records pertaining to the Collateral at any time after the occurrence and during the continuation of an Event of Default, if so demanded by Lender. 
  

	 	3.6	Further Identification of Collateral 

 Borrower will
furnish to Lender from time to time statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral as Lender may reasonably request, all in reasonable detail. 
  

	 	3.7	Notices 

 Borrower will advise Lender promptly in
reasonable detail at its address set forth in Section 7.9 hereof (a) of any lien (other than liens created hereby or permitted under the Credit Agreement) on or claim asserted against any of the Collateral; (b) of the occurrence of
any other event that could reasonably be expected to have a material adverse effect on the Collateral or on the liens created hereunder; and (c) of any notice provided to Silicon Valley Bank pursuant to the SVB Credit Agreement referred to in
the Note. 
  

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 Borrower will not (a) change its state of organization, (b) change the location of its chief
executive office/chief place of business or remove its books and records from the location specified in this Agreement, (c) permit any of the Inventory or Equipment to be kept at locations other than those identified to Lender, or
(d) change its name, identity or structure to such an extent that any financing statement filed by Lender in connection with this Agreement would become ineffective or seriously misleading, unless it shall have given Lender at least thirty
(30) days’ prior written notice thereof. 
  

	 	3.9	Intellectual Property 

 (a) Borrower (either itself
or through licensees) will (i) continue to use each Trademark material to its business in order to maintain such Trademark in full force free from any claim of abandonment for nonuse, (ii) employ such Trademark with the appropriate notice
of registration, (iii) not adopt or use any mark that is confusingly similar to or a colorable imitation of such Trademark unless Lender shall obtain a perfected security interest in such mark pursuant to this Agreement and (iv) not (and
not permit any licensee or sublicensee thereof to) do any act or knowingly omit to do any act whereby any Trademark may become invalidated. 
 (b) Borrower will notify Lender immediately if it knows, or has reason to know, of (i) any application or registration relating to any Trademark, Copyright or Patent material to its business that may become abandoned or dedicated or
(ii) any adverse determination or development (including but not limited to the institution of, or any adverse determination or development in, any proceeding in the United States Patent and Trademark Office, the United States Copyright Office
or any court or tribunal in any country) regarding Borrower’s ownership of any material Trademark, Copyright or Patent or its right to register, keep or maintain the same. 
 (c) Whenever Borrower, either by itself or through any Lender, employee, licensee or designee, shall file an application for the registration of any
material Trademark, Copyright or Patent with the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency in any other country or any political subdivision thereof, Borrower shall report such
filing to Lender within five (5) business days after the last day of the calendar month in which such filing occurs. Borrower shall execute and deliver to Lender all agreements, instruments, powers of attorney, documents and papers that Lender
may request to evidence Lender’s security interest in any Trademark, Copyright or Patents and in the goodwill and general intangibles of Borrower relating to or represented by such Trademark, Copyright or Patent. Borrower hereby constitutes
Lender its attorney-in-fact to execute and file all such writings for the foregoing purposes, including pursuant to Section 3.3, with all acts of such attorney being hereby ratified and confirmed; and such power, being coupled with an interest,
is irrevocable until all Secured Obligations are paid in full. 
  

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 (d) Borrower will take all reasonable and necessary steps, including but not limited to all reasonable
and necessary steps in any proceeding before the United States Patent and Trademark Office, United States Copyright Office or any similar office or agency in any other country or any political subdivision thereof, to maintain and pursue each
application, to obtain the relevant registration, and to maintain each registration of material Trademarks, Copyrights and Patents, including but not limited to filing applications for renewal, affidavits of use and affidavits of incontestability.

 (e) If any Trademark, Copyright or Patent that is included in the Collateral is infringed, misappropriated or diluted by a third party,
Borrower shall promptly notify Lender after it learns thereof and shall take such action as Borrower reasonably deems appropriate under the circumstances to protect such Trademark, Copyright or Patent. 
  

	 	3.10	Insurance 

 Borrower agrees to maintain commercially
reasonable insurance policies to insure the Collateral against all hazards. If Borrower fails to obtain such insurance, Lender shall have the right, but not the obligation, to obtain either insurance covering both Borrower’s and Lender’s
interest in the Collateral or insurance covering only Lender’s interest in the Collateral. Borrower agrees to pay any premium charged for such insurance. Any unpaid insurance premium advanced by Lender shall be secured under the terms of this
Agreement. Lender will not have any liability whatsoever for any loss which may occur by reason of the omission or lack of coverage of any such insurance. Borrower hereby assigns to Lender the right to receive proceeds of such insurance to the full
amount of the Secured Obligations and hereby directs any insurer to pay all proceeds directly to Lender, and authorizes Lender to endorse any draft. In Lender’s discretion, Lender may apply any insurance proceeds either toward repair of the
property or reduction of the balance of the Secured Obligations. 
  

	 	3.11	Other Liens; Disposition of Collateral 

 Except with
respect to liens permitted by the Credit Agreement, Borrower will not create, permit or suffer to exist, and will defend the Collateral against and take such other action as is necessary to remove, any lien on the Collateral except as contemplated
by the Credit Agreement, and will defend the right, title and interest of Lender in and to the Collateral and in and to all proceeds thereof against the claims and demands of all persons whatsoever. Except as permitted by the Credit Agreement,
Borrower will not sell, assign, transfer or otherwise convey an interest in the Collateral. 
  

	 	3.12	Taxes 

 Borrower will pay promptly before delinquent
all property and other taxes, assessments, and governmental charges or levies imposed upon, and all claims (including claims for labor, materials, and supplies) against, the Collateral, and all income and other taxes imposed upon Borrower, except to
the extent the validity thereof is being contested diligently and in good faith by proper proceedings by Borrower. 
  

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 ARTICLE IV.    REPRESENTATIONS AND WARRANTIES 
 Borrower hereby makes the following representations and warranties: 
  

	 	4.1	Title to Collateral 

 Borrower has good and
marketable title to all the Collateral, free and clear of all liens excepting only the security interests created pursuant to this Agreement or permitted by the Credit Agreement. Subject to bankruptcy, insolvency and similar laws affecting the
enforceability of creditors’ rights generally and to general principles of equity, this Agreement is effective to create in favor of Lender for the benefit of Lender a valid and enforceable security interest in and lien upon all of
Borrower’s right, title and interest in and to the Collateral, and, upon the filing of appropriate Uniform Commercial Code financing statement with the Delaware Secretary of State, such security interest will be duly perfected in all the
Collateral that may be perfected by filing. 
  

	 	4.2	No Impairment of Collateral 

 None of the Collateral
shall be impaired or jeopardized because of the security interest herein granted. 
  

	 	4.3	Location of Records 

 The address of the office
where the books and records of Borrower are kept concerning the Collateral is Borrower’s principal office at 1040 12th Avenue NW Issaquah, WA 98027-8929 or such other address as Borrower may subsequently designate to Lender in writing.

  

	 	4.4	Location of Collateral 

 The locations of all
Inventory and Equipment of Borrower are Borrower’s principal place of business described in Section 4.3 and such other addresses in the United States and Canada as Borrower may subsequently designate to Lender in writing. 
  

	 	4.5	Name 

 Borrower’s legal name is “Applied
Precision, LLC”. 
  

	 	4.6	State of Organization 

 Borrower’s state of
organization is Delaware. 
  

	 	4.7	Chief Executive Office 

 Borrower’s chief
executive office and chief place of business is located at the address set forth in Section 4.3. 
  

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 ARTICLE V.    RIGHTS WITH RESPECT TO THE COLLATERAL 
  

	 	5.1	No Duty on the Lender’s Part 

 Lender shall not
be required (except at its option upon the occurrence and during the continuation of any Event of Default) to realize upon any Accounts, Financial Assets, Instruments, Investment Property, Chattel Paper or General Intangibles; collect the principal,
interest or payment due thereon, exercise any rights or options of Borrower pertaining thereto; make presentment, demand or protest; give notice of protest, nonacceptance or nonpayment; or do any other thing for the protection, enforcement or
collection of such Collateral. The powers conferred on Lender hereunder are solely to protect Lender’s interests in the Collateral and shall not impose any duty upon Lender to exercise any such powers. Except as otherwise agreed by Lender,
Lender shall be accountable only for amounts that Lender actually receives as a result of the exercise of such powers; and neither Lender nor any of its officers, directors, members, or employees shall be responsible to Borrower for any act or
failure to act hereunder. 
  

	 	5.2	Negotiations with Account Borrowers 

 Upon the
occurrence and during the continuation of any Event of Default, Lender may extend or consent to the extension of the time of payment or maturity of any Instruments, Accounts, Chattel Paper or General Intangibles that are included in the collateral.

  

	 	5.3	Right to Assign 

 Lender may transfer the whole or
any part of the Secured Obligations and may transfer therewith as collateral security the whole or any part of the Collateral; and all obligations, rights, powers and privileges herein provided shall inure to the benefit of the assignee and shall
bind the successors and assigns of the parties hereto. 
  

	 	5.4	Duties Regarding Collateral 

 Beyond the safe
custody thereof, Lender shall not have any duty as to any Collateral in its possession or control, or as to any preservation of any rights of or against other parties. 
  

	 	5.5	Collection From Account Debtors 

 Upon the
occurrence and during the continuation of any Event of Default, Borrower shall, upon demand by Lender (and without any grace or cure period), notify all Account Debtors to make payment to Lender of any amounts due or to become due. Borrower
authorizes Lender to contact the Account Debtors for the purpose of having all or any of them pay their obligations directly to Lender. Upon demand by Lender, Borrower shall enforce collection of any indebtedness owed to it by Account Debtors.

  

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	 	5.6	Inspection 

 Lender, from time to time at reasonable
times and intervals, may inspect the Equipment and Inventory and inspect, audit and make copies of and extracts from all records and all other papers in the possession of Borrower. 
 ARTICLE VI.    LENDER’S RIGHTS AND REMEDIES 
  

	 	6.1	General 

 Any material breach of this Agreement
which is reasonably capable of being cured within 30 days of such breach but is not cured within such time shall constitute an “Event of Default” under this Agreement. Any Event of Default under the Note shall also constitute an
“Event of Default” under this Agreement. During any such Event of Default, Lender may exercise the rights and remedies granted under the Note or and under this Agreement and may exercise any other rights and remedies at law and in equity,
including without limitation remedies available under the Uniform Commercial Code, simultaneously or consecutively, all of which rights and remedies shall be cumulative. The choice of one or more rights or remedies shall not be construed as a waiver
or election barring other rights and remedies. Borrower hereby acknowledges and agrees that Lender is not required to exercise all rights and remedies available to it equally with respect to all the Collateral and that Lender may select less than
all the Collateral with respect to which the rights and remedies as determined by Lender may be exercised. 
  

	 	6.2	Notice of Sale; Duty to Assemble Collateral 

 In
addition to or in conjunction with the rights and remedies referred to in Section 6 1 hereof: 
 (a) Written notice mailed to Borrower
at the address designated herein ten (10) days or more prior to the date of public or private sale of any of the Collateral shall constitute reasonable notice. 
 (b) If Lender requests, Borrower will assemble the Collateral and make it available to Lender at places that Lender shall reasonably select, whether on Borrower’s premises or elsewhere. 
  

	 	6.3	Disposition of Collateral 

 In addition to all
rights and remedies provided in this Agreement or by law, if an Event of Default occurs, Lender may dispose of any of the Collateral at public auction or private sale in its then present condition or following such preparation and processing as
Lender deem commercially reasonable. Lender has no duty to Borrower to prepare or process the Collateral prior to sale. Lender may disclaim warranties of title, possession, quiet enjoyment and the like. Such actions by Lender shall not affect the
commercial reasonableness of the sale. Further, Lender may comply with any applicable state or federal 

  

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law requirements in connection with a disposition of the Collateral and compliance will not be considered adversely to affect the commercial reasonableness
of any sale of the Collateral. 
 ARTICLE VII.    GENERAL PROVISIONS 
  

	 	7.1	Entire Agreement 

 This Agreement together with the
Note and the other documents executed in connection herewith and therewith, sets forth all the promises, covenants, agreements, conditions and understandings between the parties hereto with respect to the subject matter hereof, and supersedes all
prior and contemporaneous agreements and understandings, inducements or conditions, express or implied oral or written, with respect thereto, except as contained or referred to herein. This Agreement may be amended or terminated only by an
instrument signed by Borrower and Lender. 
  

	 	7.2	Invalidity 

 If any provision of this Agreement
shall for any reason be held to be invalid or unenforceable, such invalidity or unenforceability shall not affect any other provision hereunder, but this Agreement shall be construed as if such invalid or unenforceable provision had never been
contained herein. 
  

	 	7.3	Nonwaiver and Nonexclusive Rights and Remedies 

 (a)
No right or remedy herein conferred upon or reserved to Lender is intended to be to the exclusion of any other right or remedy, but each and every such right or remedy shall be cumulative and shall be in addition to every other right or remedy given
hereunder and now or hereafter existing at law or in equity. 
 (b) No delay or omission by remedy, or shall be construed to be a waiver of
any such Event of Default or an acquiescence Lender in exercising any right or remedy accruing upon an Event of Default shall impair any such right or therein, nor shall it affect any subsequent Event of Default of the same or of a different nature.

  

	 	7.4	Termination of Security Interest 

 When all the
Secured Obligations have been paid in full, the security interest provided herein shall terminate and Lender shall return to Borrower all Collateral then held by Lender, if any, and shall file termination statements of the security interests herein
granted, in each case at the expense of Borrower. Thereafter, no party hereto shall have any further rights or obligations hereunder. 
  

	 	7.5	Assignment 

 Borrower may not assign this Agreement
nor any of its rights, interests or obligations hereunder without the prior written consent of Lender; provided, that no such consent will be 

  

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required in the event of: (a) the acquisition of all or substantially all the assets of Borrower or (b) the acquisition of Borrower by another
corporation or entity by consolidation, merger or other reorganization in which the holders of Borrower’s outstanding equity interests immediately prior to such transaction own, immediately after such transaction, securities representing less
than fifty percent (50%) or more of the voting power of the corporation or other entity surviving such transaction. Except as otherwise provided herein, all rights of Lender hereunder shall inure to the benefit of its successors and assigns,
and all obligations of Borrower shall be binding upon its successors and assigns. 
  

	 	7.6	Lender’s Appointment as Attorney-in-Fact 

 (a)
Borrower hereby irrevocably constitutes and appoints Lender and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact, which shall be deemed coupled with an interest and shall be irrevocable, with
full power and authority in the place and stead of Borrower and in the name of Borrower or in its own name, from time to time in Lender discretion, for the purpose of carrying out the terms of this Agreement, to take any and all appropriate action
and to execute any and all documents and instruments that may be necessary or desirable to accomplish the purposes of this Agreement, including, without limitation: (i) to demand, sue for, and give an effectual discharge of any sum payable to
Borrower for Collateral assigned to Lender; (ii) to endorse in Lender’s favor any negotiable instrument drawn in Borrower’s favor in payment of the Collateral assigned to Lender; (iii) to execute on behalf of Borrower any UCC
financing statements, amendments thereto and continuations thereof (or similar statements of notice, registration, amendment or continuation under the laws of any jurisdiction), or other writing in connection with this Agreement or the Collateral as
Lender may require for the purpose of protecting, maintaining or enforcing the Collateral or the security interest granted to Lender in the Collateral; (iv) to adjust, make, pursue, settle and collect any insurance claim in connection with this
Agreement; and (v) to discharge taxes and encumbrances at any time levied or placed on the Collateral, except to the extent such as being contested by Borrower in good faith, or otherwise protect the Collateral, and to make repairs thereof.
Borrower agrees to reimburse Lender on demand for any and all expenditures made in connection with any of the foregoing powers exercised by Lender hereunder. Lender may only utilize this power of attorney during an Event of Default. 
 (b) Borrower also authorizes Lender, at any time and from time to time, to execute, in connection with the sale provided for in Article VI hereof, any
endorsements, assignments or other instruments of conveyance or transfer with respect to the Collateral. 
 (c) The powers conferred on
Lender hereunder are solely to protect Lender’s interests in the Collateral and shall not impose any duty upon Lender to exercise any such powers. Lender shall be accountable to Borrower only for amounts that they actually receive as a result
of the exercise of such powers, and neither Lender nor any of its members, officers, directors, employees or Lenders shall be responsible to Borrower for any act or failure to act hereunder (except in the case of negligence or willful misconduct).

  

 -11- 

	 	7.7	Performance by Lender of Borrower’s Obligations 

 If Borrower fails to perform or comply with any of its agreements contained herein and Lender, as provided for by the terms of this Agreement, shall perform or comply, or otherwise cause performance or compliance, with such agreement, the
expense of Lender incurred in connection with such performance or compliance, together with interest thereon at the rate provided for in the Note upon the occurrence of an Event of Default, shall be payable by Borrower to Lender and shall constitute
Secured Obligations. 
  

	 	7.8	Governing Law 

 This Agreement and the rights and
obligations of the parties hereunder shall be construed and enforced in accordance with and shall be governed by the laws of the State of Washington, without regard to the choice of law rules thereof. 
  

	 	7.9	Notices 

 Unless otherwise provided, any notice
required or permitted under this Agreement shall be given in writing and shall be deemed effectively delivered (a) upon personal delivery to the party to be notified, (b) upon confirmation of receipt by fax by the party to be notified,
(c) one (1) business day after deposit with a reputable overnight courier, prepaid for overnight delivery and addressed as set forth in (d), or (d) three (3) days after deposit with the United States Post Office, postage prepaid,
registered or certified with return receipt requested and addressed to the party to be notified at the address indicated below, or at such other address as such party may designate by ten (10) days’ advance written notice to the other
party given in the foregoing manner. 
  

			
	 If to Borrower:
	  	Applied Precision, LLP
		  	1040 12th Avenue NW
		  	Issaquah, WA 98027-8929
		
	 If to Lender:
	  	Lakeside Management Financial, LLC
		  	1040 12th Avenue NW
		  	Issaquah, WA 98027-8929
		
	 With a copy to:
	  	John Robertson
		  	Venture Law Group
		  	4750 Carillon Point
		  	Kirkland, WA 98033

  

 -12- 

	 	7.10	Counterparts 

 This Agreement may be executed in one
or more counterparts, each of which shall constitute an original Agreement, but all of which together shall constitute one and the same instrument. 
  

	 	7.11	Intercreditor Agreement 

 This Agreement and the
rights granted and agreements made by Borrower hereunder are subject to the terms of the Mutual Subordination Agreement among Borrower, Lender, and Silicon Valley Bank (the “Intercreditor Agreement”). 
 IN WITNESS WHEREOF, Borrower and Lender have caused these presents to be duly executed by their respective duly authorized signatories as of the day and
year first above written. 
  

			
	APPLIED PRECISION, LLC
		
	By:	 	 Applied Precision Holdings, LLC, its sole member

		 	

  

			
	 By:
	 	 /s/ Ronald C. Seubert

	 Title:
	 	 Manager, CEO

  

			
	LENDER
		
	ACCEPTED BY:	 	LAKESIDE MANAGEMENT FINANCIAL, LLC

  

			
		
	 By:
	 	 /s/ Ronald C. Seubert

	 Title:
	 	 Manager

	

  

 -13- 

 SCHEDULE I 
 COPYRIGHTS 
 Borrower possesses all necessary trademarks, trade names, service marks, copyrights,
patents, patent rights and licenses to conduct its businesses as now and as proposed to be conducted, without conflict with the rights or claimed rights of others. 
  

 -14- 

 SCHEDULE II 
 PATENTS 
 APPLIED PRECISION INTELLECTUAL PROPERTY PATENTS 
 Updated 03/06/03 
 2002 Activity 
 2003 Activity 
  

							
	  
 PATENT FILES
	  	INVENTOR	  	PATENT NUMBER	  	DATE ISSUED
				
	 PENDING PATENTS
	  		  		  	
				
	 1.      COORDINATE CALIBRATION FOR SCANNING SYSTEMS
	  	 CARL BROWN
 RAY KRAFT
 JOHN STROM
 MARK CAVELERO
	  	 Prov. Application
     Filed 1/16/01 – 60,262,000
 Utility Application
     Filed 1/14/02 – 10/047,458
 PCDT Application

    Filed 1/15/02 – USO2/01082
	  	
				
	 2.      PRECISION CONTROLLED
          FAST VALVE
	  	 STEVE QUARRE
	  	 Prov. Application
     Filed 3/29/01 – 60/280,314
 Utility Application
     Filed 03/27/02 – 10/106,803
 PCT Application

    Filed 03/26/02 – USO2/09448
	  	  
  
 Published 10/03/02
  
 Published 10/10/02

				
	 3.      FLAT FIELD, PANEL FLATTENING, AND PANEL CONNECTING METHODS
	  	 CARL BROWN
	  	 Prov. Application
     Filed 1/26/00 – 60/178,476
 Utility Application
     Filed 1/26/01 – 09/771,343
 PCT Application

    Filed 1/26/01 – PCT/USO1/02639
 PCT Filed in:
     Canada (#2,397,817)
     Europe
(#0190673.1)
     Japan
	  	 Published 11/8/01
  
 Published 11/6/0___
  

				
	 4.      IMAGE METRICS IN THE STATISTICAL ANALYSIS OF DNA MICROARRAY DATA
	  	 CARL BROWN
 PAUL GOODWIN
	  	 Utility Application
     Filed 1/25/01 – 09/770,833
 PCT Application
     Filed 1/26/01 – US01/02593
 PCT Filed In:
     Canada
     Europe (#01903346.3)
     Japan
	  	
				
	 5.      METHOD AND APPARATUS FOR DETERMINING THE RELATIVE POSITIONS OF PROBE TIPS ON A PRINTED CIRCUIT BOARD
PROVE CARD
	  	 RON HERSHEL
 RICH CAMPBELL
 TIMOTHY
 KILLEEN
 DON SNOW
	  	 Utility Patent
     Filed 3/9/99 – 09/265,105
 German Reg. (20,004,439.7)
 Japanese App. (2000-064415
	  	  
 Issued 10/5/00
 Filed 3/9/00

				
	 6.      METHOD AND PROCESS OF APPLYING THE ANALYSIS OF SCRUB MARK MORPHOLOGY
	  	 JOHN STROM
	  	 Prov. Application
     Filed 10/30/00 – 60/244,432
 Utility Application
     Filed 10/27/01 – 10/046,559
	  	
				
	 7.      Z-AXIS FRAME FOR A HIGH ACCURACY ORTHOGONAL MOTION STAGE
	  	 GARY GUNDERSON
	  	 Prov. Application
     Filed 12/29/00 – 60/259,150
 Utility Application
     Filed 12/31/01 – 10/037,439
 PCT Application

    Filed 12/31/01 – USO1/50007
	  	Name change 2/02 for Utility Filing. Was “Method for Mounting Bearings in Precision Stage”
				
	 8.      METHOD FOR OPTIMIZING
          PROBE CARD ANALYSIS AND SCRUB MARK ANALYSIS DATA PATENT ISSUED
7/2/02
	  	 JOHN STROM
	  	 Utility Patent
     Issued: 7/2/02 – 6,414,477
 European Filing (6/7/00) 112260.5
 Japanese Filing (6/7/00) 2000-210553
	  	  
 Pending
 Pending

				
	 METHOD FOR OPTIMIZIN PROBE CARD ANALYSIS AND SCRUB MARK ANALYSIS DATA (Continuation Patent on Application 09,327,106 – Patent #6,414,477)
	  	 JOHN STROM
	  	 Continuation Patent On Above
 7/2/02 - Application
	  	
				
	 9.      OPTICAL AXIS INTEGRATION
	  	 CARL BROWN
 PAUL GOODWIN
	  	 Prov. Application
     Filed 12/6/01 – 60/338,404
 New Provisional
     Filed 12/6/02 – 60/431,692
	  	
				
	 10.    OPTICAL COMPONENTS FOR MICROARRAY ANALYSIS
	  	 STEVE REESE
 CARL BROWN
 PAUL GOODWIN
 STEVE QUARRE
	  	 Prov. Application
     Filed 4/4/00 – 60/194,574
 Utility Patent
     Filed 4/4/01 – 09/826,561
	  	  
 Published
01/17/02

							
	  
 PATENT FILES
	  	INVENTOR	  	PATENT NUMBER	  	DATE ISSUED
				
	 11.    SYSTEM AND METHOD FOR DETECTING WITH HIGH RESOLUTION A LARGE, HIGH CONTENT FIELD
	  	 CARL BROWN
 PAUL GOODWIN
	  	 Utility Patent
     Filed 4/9/99 – 09/289,799
	  	
				
	 12.    TIME-DELAY INTEGRATION IMAGING OF BIOLOGICAL SPECIMENS
	  	 CARL BROWN
 JOE VICTOR
	  	 Prov. Application
     Filed 08/08/01 – 60/311,060
 Utility Patent Application
     Filed 11/8/02 – (10/215,265)
 PCT Patent
Application
     Filed 8/6/02
	  	

							
	 13.    LOW BACKLASH LINEAR ACTUATOR
	  	 STEVE QUARRE
	  	 Prov. Application
     Filed 12/19/01 – 60/343,301
 Utility Patent Application
     Filed 12/6/02
	  	
				
	 14.    STEREOSCOPIC THREE-DIMENSIONAL METROLOGY SYSTEM AND METHOD
	  	 DON SNOW
 JOHN STROM
 RAY KRAFT
	  	 Prov. Application
     Filed 12/28/01 – 60/346,447
 Utility Application
     Filed 12/18/02
	  	
				
	 15.    DUAL-AXIS SCANNING SYSTEM AND METHOD
	  	 JOHN STROM
	  	 Prov. Application
     Filed 12/28/01 – 60/346,313
 Utility Application
     Filed 12/18/02
	  	
				
	 16.    METHOD FOR MULTI-AXIS INTEGRATION (MAI) IMAGING OF THICK SPECIMENS
	  	 STEVE RESE
 CARL BROWN
 PAUL GOODWIN
	  	 Prov. Application
     Filed 03/13/02 – 60/364,762
 Utility Application
     Being filed by P/W 2/14/03
	  	
				
	 17.    METHOD AND APPARATUS FOR OTPIMIZING FLOURESCENCE ILLUMINATION FOR THE THREE-DIMENSIONAL MICROSCOPY
	  	 CARL BROWN
 PAUL GOODWIN
 PETE LOMBROZO
 JIM ROECKER
	  	 Provisional Application
     Filed 06/11/02 – 60/388,126
	  	
				
	 18.    THERMALLY EFFICIENT CCD CAMERA HOUSING
	  	 STEVE QUARRE
	  	 Provisional Application
     Filed 12/04/02
	  	
				
	 19.    SUBSTRATE HOLDER
	  	 STEVE REESE
 PETE LOMBROZO
 JAMES ROECKER
 PAUL GOODWIN
	  	 Prov. Application
     Filed 09/06/02 – 60/408,804
	  	
				
	 20.    SYSTEM & METHOD FOR ILLUMINATING LIVING CELLS FOR IMAGING
	  	 PAUL GOODWIN
	  	 Provisional. Application
     Filed 12/26/02
	  	
				
	 21.    NEAR-IR PHASE MICROSCOPY SYSTEM AND METHOD
	  	 PAUL GOODWIN
	  	 Provisional Application
     Filed 12/31/02 –60/437-269
	  	
				
	 22.    DECONVOLUTION FOR THE REDUCTION OF BLURRING INDUCED BY INTERNAL REFLECTIONS
	  	 CARL BROWN
	  	 Provisional Application
     Filed 12/31/02 – 60/437,264
	  	

							
	  
 PATENT FILES
	  	INVENTOR	  	PATENT NUMBER	  	DATE ISSUED
	 ISSUED PATENTS
	  		  		  	
				
	 1.      CAM ACTUATED VALVE PATENT APPLICATION
	  	STEVE QUARRE	  	5,899,437	  	5/4/1999
				
	 2.      LINEAR MOTION MICROPOSITIONING APPARATUS AND METHOD
	  	 GREGORY
 GERHARD
	  	5,744,884	  	4/28/1998
				
	 3.      METHOD AND APPARATUS FOR INSPECTING INTEGRATED CIRCUIT PROBE CARDS
	  	 JOHN STEWART
 DON SNOW
 RON SEUBERT
	  	5,508,629	  	4/16/1996
				
	 4.      METHOD AND APPARATUS FOR INSPECTING INTEGRATED CIRCUIT PROBE CARDS
	  	 JOHN STEWART
 DON SNOW
 RON SEUBERT
	  	4,918,374	  	4/17/1990
				
	 5.      METHOD OF MAKING PROBE CARDS
	  	 JOHN STEWART
 DON SNOW
 RON SEUBERT
	  	5,060,371	  	10/29/1991
				
	 6.      METHOD FOR OPTIMIZING PROBE CARD ANALYSIS AND SCRUB MARK ANALYSIS DATA
	  	JOHN STROM	  	6,414,477	  	7/2/2002
				
	 7.      ORTHOGONAL HIGH ACCURACY MICROSCOPE STAGE
	  	 JOHN STEWART
 THURMOND SMITH
 GARY GUNDERSON
	  	5,812,310	  	9/22/1996
				
	 8.      ORTHOGONAL MOTION MICROSCOPE STAGE
	  	GREGORY GERHARD	  	5,684,628	  	11/4/1997
				
	 9.      PROBE CARD ARRAY CHECKPLATE WITH TRANSITION ZONES
	  	 STEVE QUARRE
 JOHN STEWART
	  	5,831,443	  	11/3/1998

 SCHEDULE III 
 TRADEMARKS 
 APPLIED PRECISION INTELLECTUAL PROPERTY TRADEMARKS 
 Updated 03/06/03 
 2002 Activity 
 2003 Activity 
  

									
	TRADEMARK FILES	  	SERIAL NO.	  	STATUS	  	DATE FILED
OR
REGISTERED	  	  
 PUBLISHED
FOR
OPPOSITION

	 APPLIED PRECISION (European CTM)
	  	638999	  	Registered	  	10/2/2000	  	
					
	 APPLIED PRECISION (Japan)
	  	4429782	  	Registered	  	11/2/2000	  	
					
	 APPLIED PRECISION (Korea Class 39)
 APPLIED PRECISION (Korea Class 34)
	  	447425
426922	  	Registered
Registered	  	5/8/1999
10/27/1998	  	
					
	 APPLIED PRECISION (Malaysia)
	  	97/14955	  	Pending	  	10/20/1997	  	
					
	 APPLIED PRECISION (Singapore)
	  	T97/13038C	  	Registered	  	4/28/1997	  	
					
	 APPLIED PRECISION (Taiwan)
	  	00905261	  	Registered	  	9/16/2000	  	
					
	 APPLIED PRECISION (United States)
	  	2,197,420	  	Registered	  	10/20/1998	  	
					
	 ARRAYWORX (Germany)
	  	30 107 434.8	  	Registered	  	6/5/2001	  	
					
	 ARRAYWORX (Japan)
	  	11-65935	  	Pending	  	7/22/1999	  	
					
	 ARRAYWORX (United Kingdom)
	  	2260935	  	Registered	  	12/7/2001	  	
	 ARRAYWORX (United Kingdom – Stylized)
	  	2203553	  	Registered	  	7/21/2001	  	
					
	 ARRAYWORX (United States)
	  	2,485,093
TMK-02-00011	  	Registered
U.S. Customs	  	9/4/2001
1/31/2002	  	
					
	 CELLWORX (United States)
	  		  	Abandoned	  		  	
	 CELLWORX (United States – Stylized)
	  		  	Abandoned	  		  	
					
	 DELTAVISION (Germany)
	  	395 33 726.7	  	Registered	  	4/8/1996	  	
					
	 DELTAVISION (Japan)
	  	4119172	  	Registered	  	2/27/1998	  	

									
	TRADEMARK FILES	  	SERIAL NO.	  	STATUS	  	DATE FILED
OR
REGISTERED	  	  
 PUBLISHED
FOR
OPPOSITION

	 DELTAVISION (UNITED KINGDOM)
	  	2,031,510	  	Registered	  	8/24/1995	  	
					
	 DELTAVISION (United States)
	  	1,951,203	  	Registered	  	1/23/1996	  	
					
	 DELTAVISION SPECTRIS (United States)
	  	76/458,062	  	Pending	  	10/15/2002	  	
					
	 FLOW POINT (European Union CTM – Stylized)
	  	2,319,978	  	Pending	  	7/23/2001	  	5/27/2002
					
	 FLOW POINT (Japan – Stylized)
	  	2001-69698	  	Pending	  	7/31/2001	  	
					
	 FLOW POINT (Malaysia – Stylized)
	  	2001-09975	  	Pending	  	8/2/2001	  	
					
	 FLOW POINT (Singapore – Stylized)
	  	TO1/09097J	  	Registered	  	3/6/2001	  	
					
	 FLOW POINT (South Korea – Stylized)
	  	40-2001-0039558	  	Pending	  	9/6/2001	  	
					
	 FLOW POINT (Taiwan – Stylized)
	  	01006968	  	Registered	  	7/16/2002	  	
					
	 FLOW POINT (United States)
	  	2,492,914	  	Registered	  	9/25/2001	  	
					
	 FLOW POINT (United States Customs Service)
	  	TMK 02-00208	  	Registered	  	3/26/2002	  	
					
	 FLOW POINT (United States – Stylized)
	  	2639935	  	Registered	  	10/15/2002	  	
					
	 MICROBURST (United States)
	  	2,332,280	  	Registered	  	3/21/2000	  	
					
	 NANOMOTION (United States)
	  	2,068,384	  	Reigstered	  	6/10/1997	  	
					
	 NANOMOVER (United States)
	  	2,068,385	  	Registered	  	6/10/1997	  	
					
	 NANOVALVE (United States)
	  	2,166,349	  	Registered	  	6/16/1998	  	
					
	 PRECISIONWARE (European Union CTM)
	  	2073880	  	Pending	  	1/24/2001	  	10/22/2001

									
	TRADEMARK FILES	  	SERIAL NO.	  	STATUS	  	DATE FILED
OR
REGISTERED	  	  
 PUBLISHED
FOR
OPPOSITION

					
	 PRECISIONWARE (United States)
	  	76/117/957	  	Pending	  	8/28/2000	  	Notice of
Allowance
8/27/02
					
	 PRECISIONWORX (Japan)
	  	2002-39616	  	Pending	  	5/15/2002	  	
					
	 PRECISIONWORX (Singapore)
	  	T02/11578J	  	Pending	  	7/26/2002	  	
					
	 PRECISIONWORX (South Korea)
	  	40-2002-0034673	  	Pending	  	7/29/2002	  	
					
	 PRECISIONWORX (United States)
	  	76/364,759	  	Pending	  	1/28/2002	  	11/26/2002
					
	 PRECISIONWORX ZBA (United States)
	  	76/484,501	  	Pending	  	1/23/2003	  	
					
	 RESTORATION
	  		  	Proposed	  		  	
					
	 SOFTWORX (European Union CTM)
	  	2073807	  	Registered	  	11/26/2002	  	
					
	 SOFTWORX (United States)
	  	76/117,602	  	Pending	  	8/28/2000	  	
					
	 WAFERWORX (European Union CTM)
	  	2073948	  	Registered	  	3/19/2002	  	
					
	 WAFERWORX (United States)
	  	2568361	  	Registered	  	5/7/2002	  	
	 WAFERWORX (United States Customs Service)
	  	TMK 02-00685	  	Registered	  	5/7/2002	  	
					
	 WAVETUNER (United States)
	  	76/146,933	  	Pending	  	10/12/2000	  	
					
	 WAVETUNER (European Union CTM)
	  	2141521	  	Registered	  	7/15/2002	  	
					
	 WORX (Germany)
	  	399 42 609.4	  	Registered	  	9/13/1999	  	
					
	 WORX AS ARRAYWORX (Japan)
	  	11-65935	  	Pending	  	Ext. of Time
until 11/21/00	  	
					
	 WORX (United States – Stylized)
 (See also ArrayWoRx above)
	  	2489831	  	Registered	  	9/18/2001

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00106-of-00352.parquet"}]]