Document:

License Agreement

 EXHIBIT 10.9 
 CONFIDENTIAL 
 NON-EXCLUSIVE SUB-LICENSE AGREEMENT 
 BETWEEN MAYO FOUNDATION FOR MEDICAL EDUCATION AND RESEARCH 
 AND AUTOGENOMICS, INC. 
 This License Agreement (“Agreement”), dated April 14, 2006, is between
AutoGenomics, Inc., a Delaware corporation having an address at 2251 Rutherford Road, Carlsbad, CA 92008, (“LICENSEE”), and Mayo Foundation for Medical Education and Research, a Minnesota corporation, having an address at 200 First Street
SW, Rochester, MN 55905, (“MAYO”). Each hereunder may be referred to separately as the (“Party”), or together as the (“Parties”). The Parties agree: 
 WHEREAS, MAYO licensed certain patents related to UGT1A1, as further identified below, from the University of Chicago (“University”) pursuant to a license agreement dated November 18, 2005
(“License Agreement”), and 
 WHEREAS, MAYO has the authority and desire to grant non-exclusive sublicenses to such patents, and 
 WHEREAS, LICENSEE desires to obtain a non-exclusive sublicense to such patents. 
 NOW THEREFORE, in consideration of the mutual promises contained herein, the sufficiency of which is hereby acknowledged, the parties have agreed as follows: 
 Section 1. Definitions 
 The following capitalized terms used in this Agreement
shall mean: 
  

	 	A.	“Affiliate” means, as to any person or entity, any other person or entity, which directly or indirectly controls, is controlled by or is under common control with such
person or entity. Control shall mean the right to control, or actual control of, management of such other entity, whether by ownership of voting securities, by agreement, or otherwise or by the direct or indirect ownership of the maximum percentage
of such stock permitted under local laws or regulations in those countries where fifty percent (50%) ownership by a foreign entity is not permitted. 

  

	 	 B.
	 “Calendar Quarter” means each of the four, three-month periods ending on March 31st, June 30th, September 30th, and December 31st. 

  

	 	C.	“Effective Date” means the date set forth on the first line of the first page of this Agreement. 

  

	 	D.	“Field” means commercial diagnostic testing services for detection of UGT1A1 in humans. Field does not include the research, development, manufacture, marketing, or sale
of therapeutic products. Commercial diagnostic testing services shall include, but not be limited to, in-house laboratory tests pursuant to CLIA, clinical trials testing, and the manufacture, use and sale of diagnostic kits.

  

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	 	E.	“Licensed Patents” means the patent applications listed on SCHEDULE A attached hereto, including all divisions, continuations, continuations-in part to the extent that
University owns or controls the patent rights, foreign counterparts, and any patents which may issue there from and any reissues, reexaminations, renewals, substitutions, or extensions of or to any such patents or patent applications.

  

	 	F.	“Licensed Product” means any product (including any apparatus or kit) or component part or testing service covered by the scope of any Valid Claim contained in any
Licensed Patent or a product made by a process, method or technique covered by the scope of any Valid Claim in any Licensed Patent or methods of using or manufacturing any product or testing service covered by the scope of any Valid Claim in any
Licensed Patent. 

  

	 	G.	“Net Sales” means: the amount billed, invoiced or received (whichever occurs first) from third parties for sales, leases or other transfers of Licensed Products less the
following amounts: 

  

	 	i.	customary trade, quantity or cash discounts and rebates, contractual allowance adjustments from third party payers, actually allowed and taken; 

  

	 	ii.	amounts repaid or credited to customers on account of rejections or returns; and 

  

	 	iii.	to the extent separately stated on purchase orders, invoices, or other documents of sale, taxes levied on and/or other governmental charges made as to production, sale,
transportation, delivery or use and paid by or on behalf of LICENSEE; and 

  

	 	iv.	reasonable charges for delivery or transportation provided by third parties, if separately stated. 

 Net Sales also includes the fair market value of any non-cash consideration received by LICENSEE for the sale of Licensed Products. Fair market value will be calculated as of the time of transfer of such non-cash
consideration to LICENSEE. The Parties shall use their commercially reasonable efforts to mutually agree to the fair market value. If the Parties do not reach a mutual agreement, the Parties within sixty (60) days shall then submit the
determination to a mutually acceptable third party. Under no circumstances shall the fair market value so determined exceed that amount that would be paid in an arm’s length transaction based on the royalty rate set forth in Section 3B as
applied to units sold of the Licensed Product. 
  

	 	H.	“Royalty(ies)” means all amounts payable under Section 3.B of this Agreement. 

  

	 	I.	“Territory” means worldwide. 

  

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	 	J.	“Valid Claim” means an issued claim of any unexpired patent which has not been held unenforceable, unpatentable or invalid by a decision of a court or governmental body of
competent jurisdiction, in a ruling that is unappealable or unappealed within the time allowed for appeal; which has not been rendered unenforceable through disclaimer or otherwise; and which has not been lost through an interference proceeding.

 Section 2. Grant 
  

	 	A.	Grant. Subject to the terms and conditions of this Agreement, MAYO hereby grants LICENSEE a non-exclusive sublicense, without the right to sublicense others, under the
Licensed Patents to make, have made, use, import, have sold, offer to sell and sell Licensed Products within the Field and within the Territory. 

  

	 	B.	U.S. Laws. The inventions claimed in the Licensed Patents were developed with the use of United States government funds. Therefore, any right granted in this Agreement
greater than that permitted under Public Law 96-517 (The Bayh-Dole Act of 1980) or Public Law 98-620 (The Trademark Clarification Act of 1984) shall be subject to modification as may be required to conform to the provisions of those laws. To the
best of its knowledge and belief, MAYO represents that as of the Effective Date no modification of any right granted is required to conform with such laws. 

  

	 	C.	No Other Rights. No rights in and to the Licensed Patents other than those provided in this Section 2, express or implied, are conveyed by MAYO or University. No rights
to any patents except those included in Licensed Patents are conveyed by University or MAYO. 

 Section 3. Payments

  

	 	A.	Upfront Payment. LICENSEE shall pay MAYO the sum of seventy five thousand dollars (US$75,000), which shall not be creditable against Royalties. Payments shall be made within
thirty-five (35) days of the Effective Date. 

  

	 	B.	Royalties. LICENSEE shall pay MAYO a Royalty equal to six percent (6%) of Net Sales of Licensed Products by LICENSEE or its Affiliates, which Royalty may be creditable
only as set forth below in Section 3D. 

  

	 	C.	FDA Approval. Upon application to the United States Food and Drug Administration for the commercial sale of an in vitro diagnostic kit developed by LICENSEE that incorporates
a Licensed Product as defined in Section 1.F.above, LICENSEE shall pay MAYO a one-time “Application Fee” of $25,000 within thirty (30) days of such FDA application by LICENSEE. Upon approval from the United States Food and Drug
Administration for the commercial sale of an in vitro diagnostic kit developed by LICENSEE that incorporates a Licensed Product as defined in Section l.F.above, LICENSEE shall pay MAYO a one-time “Approval Fee” of $25,000 within thirty
(30) days of such FDA approval. 

  

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	 	D.	“Combination Service” means a Licensed Product offered as part of a package in combination with another product or service (e.g. a screening panel of diagnostic
tests) or together with a non-testing service(s) such as a specialized interpretive service or a consultative service (e.g. genetic counseling), where the Licensed Product is not separately billed. 

 Reduction for Combination Services. For each Combination Service that SUBLICENSEE intends to offer pursuant to this Agreement: 
  

	 	i.	SUBLICENSEE shall notify MAYO of such proposed Combination Service, such notice to include a complete description of the proposed Combination Service; and 

 

	 	ii.	SUBLICENSEE may propose A commercially reasonable fraction or percentage of the fees associated with the Combination Service, that relate to the Licensed Product, that would be used
for calculation of the respective Net Sales for the calculation of the royalty due hereunder, and 

  

	 	iii.	MAYO must respond within sixty (60) days that MAYO will negotiate in good faith with SUBLICENSEE to identify a reasonable allocation of Net Sales for the Combination Service.
Otherwise, the fraction or percentage proposed by SUBLICENSEE shall be deemed accepted. 

 Notwithstanding anything to the
contrary, the fraction or percentage of the Net Sales for the Combination Service allocated to the Licensed Product shall not be lower than fifteen percent (15%) of the Net Sales. 
  

	 	E.	Payment and Reporting of Royalties. Time is of the essence with respect to all payments made by LICENSEE to MAYO. All payments shall be made in U.S. currency within
forty-five (45) days after the end of each Calendar Quarter during the term of this Agreement, beginning with the Calendar Quarter in which the first commercial sale of a Licensed Product occurs. Any necessary conversion of currency into United
States dollars shall be at the applicable rate of exchange of Citibank, N.A., in New York, New York, on the last day of the Calendar Quarter in which such transaction occurred. Payments should be mailed to the following address:

 Mayo Foundation for Medical Education and Research 
 3050 Superior Drive NW 
 Rochester, MN 55901

 Attn: Todd Lechtenberg 
  

	 	F.	Royalty Reports. Each payment shall be accompanied by a statement, verified and signed by a designated representative or officer of LICENSEE and certified as accurate,
showing Net Sales for each country in the Territory and calculation of the Royalties due. 

  

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	 	G.	Overdue Payments. Payments due to MAYO under this Agreement shall, if not paid when due under the terms of this Agreement, bear simple interest at the lower of the prime rate
of interest (as published by Citibank, N.A. on the date such payment is due) plus one and one-half percent (1.5%) or the highest rate permitted by law, calculated on the basis of a 360-day year for the number of days actually elapsed, beginning
on the due date and ending on the day prior to the day on which payment is made in full. LICENSEE shall pay for all costs and fees including reasonable attorney’s fees that MAYO must expend in order to collect any amounts due and owing to MAYO
after reasonable attempts have been made to collect the amounts or, in MAYO’S discretion, after the amounts remain outstanding for a period of ninety (90) days from the payment due date. 

 Section 4. Records and Reporting 
  

	 	A.	Full and Accurate Records. MAYO may from time to time and at any reasonable time, not exceeding once every twelve (12) months, by a professional accountant selected by
MAYO and acceptable to LICENSEE, such acceptance not to be unreasonable withheld, inspect the books and records of LICENSEE and its Affiliates in order to verify the accuracy of reported statement by LICENSEE of sums paid or payable, or of any other
material obligation under this Agreement. The MAYO representative shall treat as confidential all materials and information obtained as a result of such inspection. LICENSEE shall, and shall cause its Affiliates to keep full and accurate books and
records in sufficient detail so that LICENSEE’s obligations under this Agreement can be properly determined. Such books and records shall be maintained for at least five (5) years after the Royalty reporting period (s) to which they
relate. After completion of any such examination, MAYO shall promptly notify LICENSEE in writing of any proposed modification to LICENSEE’s statement of sums due and payable. Such examination shall be made at the expense of MAYO, unless such
examination reasonably demonstrates the amount of Royalties and other payments due MAYO have been underpaid by 5% or more. In such case LICENSEE shall be responsible for reimbursing MAYO for the reasonable examination fee and expenses charged by the
auditor. 

 Section 5. Patents 
  

	 	A.	Prosecution and Maintenance MAYO will coordinate with University in the prosecution, maintenance and enforcement of the Licensed Patents. MAYO shall use commercially
reasonable efforts to duly and punctually perform any necessary obligation related to prosecution, maintenance, and enforcement provisions under the License Agreement. 

  

	 	B.	Infringement. LICENSEE may inform MAYO if it becomes aware that a third party is infringing the Licensed Patents. 

  

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 Section 6. Term and Termination 
  

	 	A.	Term. Unless terminated earlier, this Agreement shall expire on the expiration date of the last to expire of the Licensed Patents. This Agreement shall immediately terminate
upon termination of the License Agreement for any reason. MAYO will promptly notify LICENSEE of any such termination of the License Agreement. 

  

	 	B.	MAYO’S Right to Terminate. MAYO shall have the right to terminate this Agreement as follows, in addition to all other available remedies: 

  

	 	i.	If LICENSEE fails to make any Royalty or other payment when due, this Agreement shall terminate effective thirty (30) days after MAYO’S written notice to LICENSEE to such
effect, unless LICENSEE makes such payment within the thirty (30) days. 

  

	 	ii.	If LICENSEE fails to observe any other material obligation of this Agreement, this Agreement shall terminate effective thirty (30) days after MAYO’S written notice to
LICENSEE describing such failure, unless LICENSEE cures such failure within the thirty (30) days. 

  

	 	iii.	If LICENSEE shall have filed by or against it a petition under any bankruptcy or insolvency law it shall immediately notify MAYO. If such petition is not dismissed within sixty
(60) days of its filing, or if LICENSEE makes an assignment of all or substantially all of its assets for the benefit of its creditors LICENSEE shall immediately notify MAYO and MAYO may terminate this Agreement by written notice effective as
of the (i) date of filing by LICENSEE of any such petition, (ii) date of any such assignment to creditors, or (iii) end of the sixty (60) days if a petition is filed against it and not dismissed by such time, whichever is
applicable. 

  

	 	iv.	If LICENSEE shall be dissolved, liquidated or otherwise ceases to exist, other than a because of a corporate reorganization of LICENSEE and its Affiliates, this Agreement shall
automatically terminate as of (i) the date articles of dissolution or a similar document is filed on behalf of LICENSEE with the appropriate government authority or (ii) the date of establishment of a liquidating trust or other arrangement
for the winding up of the affairs of LICENSEE. 

  

	 	C.	LICENSEE’S Right to Terminate. LICENSEE may terminate this Agreement at any time by giving MAYO ninety (90) days prior written notice. 

  

	 	D.	Survival. All causes of action accruing to either party under this Agreement shall survive termination for any reason, as well as (i) LICENSEE’s obligation to pay
Royalties on Net Sales that arose from Licensed Product transactions that occurred during the term of the Agreement under Section 3; and (ii) LICENSEE’S obligation to report Net Sales that arose from Licensed Product transactions that
occurred during the term of the Agreement and record keeping required by Section 4. Sections 6D, 6E, 7,8I, shall survive termination or expiration of this Agreement for any reason. 

  

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	 	E.	Post Termination, Post Expiration Obligations of LICENSEE. Upon the termination of this Agreement for any reason, or the expiration of this Agreement, all rights of LICENSEE
to use the Licensed Patent(s) provided to LICENSEE under this Agreement, shall immediately thereafter cease. Upon such termination or expiration, all tangible materials, including all copies shall be transferred to MAYO or, at MAYO’S
discretion, destroyed in part or in whole by LICENSEE and LICENSEE shall provide to the MAYO a certification that such partial or complete destruction has been completed. LICENSEE shall not thereafter operate or conduct business under any name or
mark and in any manner in the Territory that might tend to give the market the impression that this Agreement is still in force, or that LICENSEE has any right to use any Licensed Patent(s), any trademark or service mark of MAYO OR University,
and/or any tangible property owned by University or MAYO in the Territory. All payments including fees and costs due under this Agreement and not paid yet shall become due and payable within thirty (30) days after termination. Upon expiration
or termination, LICENSEE shall cease using University’s or MAYO’s name or any of the University’s or MAYO’S trade names under which the LICENSEE has offered Licensed Products. 

 Section 7. Warranties; Indemnification; Insurance 
  

	 	A.	Warranties. MAYO represents and warrants to LICENSEE that it may grant the sublicense set forth herein under the License Agreement with University. MAYO further represents
and warrants to LICENSEE that should the License Agreement with University terminate for any reason, except expiration of the License Agreement, that the License Agreement with University provides that University will directly sublicense LICENSEE
under similar terms and conditions set forth in this Agreement provided that LICENSEE is not in default of its obligations to MAYO. 

  

	 	B.	Disclaimer of Warranties. Except as otherwise stated in this Agreement, MAYO and University make no representations or warranties of any kind, express or implied, with
respect to the invention(s) claimed in the Licensed Patents or with respect to the Licensed Patents themselves, including but not limited to, any representations or warranties about (i) the validity, scope or enforceability of any of the
Licensed Patents; (ii) the accuracy, safety or usefulness for any purpose of any information provided by University or MAYO with respect to the invention(s) claimed in the Licensed Patents or with respect to the Licensed Patents themselves and
any products developed from or covered by them; (iii) whether the practice of any claim contained in any of the Licensed Patents will or might infringe a patent or other intellectual property right owned or licensed by a third party;
(iv) the patentability of any invention claimed in the Licensed Patents; or (v) the accuracy, safety, or usefulness for any purpose of any product or process made or carried out in accordance with or through the use of the Licensed
Patents. 

  

	 	C.	 Indemnification. LICENSEE agrees, and agrees to cause its Affiliates to defend and hold harmless University and MAYO, and their respective Affiliates and all
trustees, directors, officers, employees, fellows and agents of any of the foregoing (each an “Indemnified Person”) from and against any and all third party claims, demands, loss, damage, penalty, cost or expense (including attorneys’
and witnesses’ fees and costs) of any kind or nature, based upon, or arising out of any cause of action arising from 

  

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the development, production, use, sale or other disposition of Licensed Products and all activities associated therewith by LICENSEE and its Affiliates, or
any use of information provided by University or MAYO to LICENSEE provided however, such indemnity shall not extend to damages arising from any breach of the Agreement or willful or negligent act by MAYO and provided that: (i) MAYO promptly
notifies LICENSEE of the claim in writing;; and ii) MAYO provides LICENSEE with the assistance, information and authority necessary to perform LICENSEE’S obligations under this Section. LICENSEE agrees and agrees to cause each of its Affiliates
to agree not to sue University and its Affiliates and all trustees, directors, officers, employees, fellows and agents of University in connection with the development, production, use, sale or other disposition of Licensed Products and all
activities associated therewith. University and MAYO shall be entitled to participate at its option and expense through counsel of its own selection, and may join in any legal actions related to any such claims, demands, losses, damages, costs,
expenses and penalties. LICENSEE shall not enter into any settlement which includes an admission of negligence or wrongdoing by any Indemnified Person, without the prior written consent of such party. 
  

	 	D.	Assumption of Risk. Neither University nor any party to this Agreement, nor any of such parties’ respective trustee, directors, officers, employees, fellows or agents
shall be responsible or liable for any injury, loss, or damage of any kind, including but not limited to indirect, special, incidental consequential, punitive damages or lost profits. The above limitations on liability apply even though a party may
have been advised of the possibility of such injury, loss or damage. This Section shall not apply to LICENSEE’S obligation to indemnify in this Agreement. 

  

	 	E.	Insurance. LICENSEE agrees and agrees to cause its Affiliates to maintain liability insurance that shall cover any claims for bodily injury, property, or other damage alleged
to relate to Licensed Products. LICENSEE and Affiliates shall list University, MAYO, and their Affiliates, at LICENSEE’S or Affiliates’ expense, whichever is relevant, as additional insured under its general commercial liability insurance
policy that LICENSEE and its Affiliates have or shall obtain, that includes any coverage of claims relating to Licensed Products. Such insurance shall be primary and noncontributory to any insurance University or MAYO may have. At MAYO’S
request, LICENSEE will supply MAYO with evidence of such coverage, and will notify MAYO in writing at least thirty (30) days prior to any termination of or material change in coverage under any such policies. 

 Section 8. Miscellaneous 
  

	 	A.	Marking. If commercially feasible, LICENSEE shall and agrees to cause its Affiliates, to place in a conspicuous location on Licensed Products (or its packaging where marking
the Licensed Product is physically impossible) sold to third parties, a patent notice in accordance with the laws concerning the marking of patented articles in the country in which such articles are sold. 

  

	 	B.	US Manufacture. LICENSEE agrees that any Licensed Products will be manufactured substantially in the United States of America as required by 35 United States Code
Section 204. 

  

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	 	C.	Export Regulations. To the extent that the United States Export Control Regulations are applicable, neither LICENSEE nor University shall, without having first fully complied
with such regulations, (i) knowingly transfer, directly or indirectly, any unpublished technical data obtained or to be obtained from the other party hereto to a destination outside the United States, or (ii) knowingly ship, directly or
indirectly, any product produced using such unpublished technical data to any destination outside the United States. 

  

	 	D.	Entire Agreement, Amendment, Waiver. This Agreement together with the Schedules attached hereto constitutes the entire agreement between the parties regarding the subject
matter hereof, and supersedes all prior written or oral agreements or understandings (express or implied) between them concerning the same subject matter. This Agreement may not be amended or modified except in a document signed by duly authorized
representatives of each party. No waiver of any default hereunder by either party or any failure to enforce any rights hereunder shall be deemed to constitute a waiver of any subsequent default with respect to the same or any other provision hereof.
Notwithstanding anything to the contrary in this Agreement, the confidentiality agreement entered into between the parties and effective December 5,2005, shall remain in full force and effect. 

  

	 	E.	Notice. Any notice required or otherwise made pursuant to this Agreement shall be in writing, sent by registered or certified mail properly addressed, or by facsimile with
confirmed answer-back, to the other party at the address set forth below or at such other address as may be designated by written notice to the other party. Notice shall be deemed effective three (3) business days following the date of sending
such notice if by mail, on the day following deposit with an overnight courier, if sent by overnight courier, or upon confirmed answer-back if by facsimile. 

  

	 	    	If to LICENSEE: AutoGenomics Inc 

			
	 	  	 2251 Rutherford Road
 Carlsbad, CA 92008
 Attn: Fareed Kureshy
 Facsimile Number: 760-804-7382

  

	 	    	If to MAYO: MAYO Foundation for Medical Education and Research 

			
	 	  	 3050 Superior Drive SW
 Rochester, MN 55901

Attn: David Herbert
 Facsimile Number: 507-538-1278

  

	 	    	With copy to: MAYO Foundation for Medical Education and Research 

			
	 	  	 200 First Street SW
 Rochester, MN
55905

 Attn: Legal Department 
  

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	 	F.	Assignment. LICENSEE may not assign or delegate this Agreement or any of its obligations hereunder without the prior written consent of MAYO, which shall not be unreasonably
withheld. This Agreement shall be binding on the parties hereto and upon their permitted successors and assigns. 

  

	 	G.	Change of Control. To the extent permitted by applicable law, in the event of a Change in Control, as defined in this Section, LICENSEE shall notify MAYO at least thirty
(30) days before the effective date of such Change in Control. A “Change of Control” shall mean the occurrence of one of the following events during the term of this Agreement: (i) any transaction in which the LICENSEE is to be
consolidated with or acquired by another entity in a merger, tender offer or other reorganization in which the holders of the outstanding voting stock of the LICENSEE immediately preceding the consummation of such event, shall, immediately following
such event, hold, as a group, less than a majority of the voting securities of the surviving or successor entity, or (ii) the sale of all or substantially all of the LICENSEE’S assets. 

  

	 	H.	Governing Law. The interpretation and performance of this Agreement shall be governed by the laws of the State of Minnesota, without consideration of conflicts of laws
provisions. 

  

	 	I.	No Use of Name. Neither Party shall use the name of the other Party in any commercial activity, marketing, advertising or sales brochures except with the prior written
consent of the other Party, which consent may be granted or withheld at such Party’s sole discretion. The Parties agree not to use the name of either Party’s employee(s) in any commercial activity, marketing, advertising or sales
brochures. 

  

	 	J.	Force Maieure. No failure or omission by either party in the performance of any obligation of this Agreement shall be deemed a breach of this Agreement or create any
liability if the same shall arise from any cause or causes beyond the control of the parties, including, but not limited to, the following, which, for the purposes of this Agreement, shall be regarded as beyond the control of the party in question:
Act of God; act or omission of any government; any rule, regulation or order issued by any governmental authority or by any officer, department, agency, or instrumentality thereof; fire; storm; flood; earthquake; accident; war; rebellion;
insurrection; riot; invasion; strike; and lockout. 

  

	 	K.	Construction. This Agreement shall be construed without regard to the Party or Parties responsible for the preparation of the same and shall be deemed as prepared jointly by
the Parties. Any ambiguity or uncertainty existing herein shall not be interpreted or construed against any Party. 

  

	 	L.	Execution. This Agreement may be executed by the Parties in any number of identical counterparts, each of which, for all purposes shall be deemed to be an original, and all
of which shall constitute, collectively, one instrument. 

  

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	 	M.	Severability. If any provision of this Agreement shall be held illegal, unenforceable, or in conflict with any laws of any federal, provincial, state, or local government
that may jurisdiction over this Agreement, the validity of the remaining portions or provisions shall not be affected thereby. 

 IN WITNESS WHEREOF, the parties hereto have caused this agreement to be executed by their respective duly authorized officers or representatives on the date first above written. 
  

									
	AutoGenomics, Inc.	 		 	Mayo Foundation for Medical Education and Research
					
	By:	 	/s/ Fareed. Kureshy	 		 	By:	 	/s/ Jonathan J. Oviett
		 	Fareed. Kureshy	 		 		 	Jonathan J. Oviett
		 	President & CEO	 		 		 	Secretary
		 	Date of Signature: April 14th 2006	 		 		 	Date of Signature: 4.19.06

  

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 SCHEDULE A 
  

											
	 UCHI
	  	Domain	  	Status	  	Pat App No	  	Filing Date	  	Patent No
	 UCHI 0516
	  	US	  	Issued	  	08/423,641	  	04/17/95	  	5,786,344
	 UCHI 0516
	  	Canada	  	Pending	  	2,194,277	  	07/05/95	  	
	 UCHI 0516
	  	EPO	  	Issued	  	95 925 476.4	  	07/05/95	  	
	 UCHI 0S16
	  	UK	  	Issued	  	95 925 476.4	  	07/05/95	  	
	 UCHI 0516
	  	Ireland	  	Issued	  	95 925 476.4	  	07/05/95	  	
	 UCHI 0516
	  	Luxembourg	  	Issued	  	95 925 476.4	  	07/05/95	  	
	 UCHI 0516
	  	Japan	  	Pending	  	8-503964	  	07/05/95	  	
	 UCHI 0693
	  	US	  	Issued	  	09/251,274	  	02/16/99	  	6,395,481
	 UCHI 0693
	  	US	  	Issued	  	10/061,693	  	02/01/02	  	6,472,157
	 UCHI 0693
	  	US	  	Pending	  	10/277,160	  	10/21/02	  	
	 UCHI 1014
	  	US	  	Pending	  	10/751,606	  	01/05/04	  	
	 UCHI 1116
	  	PCT	  	Pending	  	PCT/US04/16920	  	05/28/04	  	

  

 Page 12 of 12Nonexclusive Patent License Agreement

 EXHIBIT 10.10 
 NONEXCLUSIVE PATENT LICENSE AGREEMENT 
 THIS NONEXCLUSIVE PATENT LICENSE AGREEMENT (this
“Agreement”) shall be effective as of April 14, 2006 (the “Effective Date”). The parties to this Agreement are AutoGenomics, Inc., a Delaware corporation having an address at 2251 Rutherford Road, Carlsbad, CA
92008 (“Licensor”) and the Mayo Foundation for Medical Education and Research, a Minnesota charitable corporation, located at 200 First Street SW, Rochester, Minnesota 55905-0001 (“Mayo”). 
 RECITALS 
 WHEREAS, Licensor
owns and has the right to license certain patent rights; 
 WHEREAS, Licensor desires to license to Mayo, and Mayo desires to obtain a
license from Licensor to, such patent rights; and 
 WHEREAS, Mayo believes that this Agreement is consistent with its charitable
purposes;  
 NOW, THEREFORE, the parties agree: 
  

	1.	DEFINITIONS 

  

	1.1	Capitalized terms used in this Agreement shall have the meanings set forth in this Section 1 or elsewhere herein. All definitions below or elsewhere in this Agreement apply to
both their singular and plural forms, as the context may require. The terms “herein,” “hereunder,” “hereof and similar expressions refer to this Agreement. “Section” and
“Exhibit” refer respectively to a Section herein or Exhibit attached hereto. The word “including” and its variants means “including without limitation,” unless otherwise stated. All references to
“days” are to calendar days, unless otherwise specified. 

  

	1.2	“Combination Offering” means any product which is a Licensed Product, or service which is a Licensed Service, and which contains other product(s), service(s) or
component(s) thereof, that (i) the sale, use or import by itself does not infringe or contribute to or induce the infringement of Patent Rights; (ii) can be sold separately; and (iii) enhances the market price of the final product(s)
or service(s) supplied, sold, used or imported. 

  

	1.3	“Licensed Product” means any product the manufacture, use, sale, offer for sale, or importation of which would constitute, but for the license granted to Mayo by
Licensor herein, an infringement of any Valid Claim within the Patent Rights. 

  

	1.4	“Licensed Service” means any service the provision of which would constitute, but for the license granted to Mayo by Licensor herein, an infringement of any Valid
Claim within the Patent Rights. 

  

	1.5	“Licensor Affiliate” means an entity that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with,
Licensor. For purposes of this definition, “control” will mean the direct or indirect ownership of (a) at least fifty percent (50%) or the maximum percentage, if less than fifty percent (50%), as allowed by applicable law, of the
outstanding voting securities of such entity, or (b) at least fifty percent (50%) of the decision-making authority of such entity. 

  

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	1.6	“Mayo Affiliate” means any corporation or other entity within the same “controlled group of corporations” as Mayo or its parent. For purposes of this
definition, the term “controlled group of corporations” will have the same definition as Section 1563 of the Internal Revenue Code as of November 10, 1998, but will include corporations or other entities which, if not a stock
corporation, more than fifty percent (50%) of the board of directors or other governing body of such corporation or other entity is controlled by a corporation within the controlled group of corporations of Mayo or Mayo Foundation. As of the
Effective Date, Mayo’s Affiliates include Mayo Foundation; Mayo Collaborative Services; Inc., Rochester Methodist Hospital; Saint Marys Hospital; Mayo Clinic Rochester; Mayo Clinic Jacksonville, Florida; St. Luke’s Hospital, Jacksonville,
Florida; Mayo Clinic Arizona; Mayo Clinic Hospital, Arizona; Mayo Regional Practices, P.C., Decorah, Iowa; and Mayo Health System West Central Wisconsin and controlled or wholly-owned subsidiary corporations of all of the above.

  

	1.7	“Net Sales” means the total of the gross invoice amounts received by Mayo or any Mayo Affiliate for the sale, transfer or provision of Licensed Products or Licensed
Services by Mayo or a Mayo Affiliate, less the sum of customary deductions, including: cash, trade, or quantity discounts; contractual allowance adjustments from third party payers; sales, use, tariff, import/export duties or other taxes imposed on
particular sales (except for income taxes imposed on the sales of products or provision of services in foreign countries); or credits to customers or refunds because of rejections or returns. For purposes of calculating Net Sales, any Net Sales
calculation shall not be applied to Licensed Products more than once. 

  

	1.8	“Patent Rights” means any and all patents and patent applications (including inventor’s certificates and utility models) listed on Exhibit A, including
any substitutions, extensions, reissues, reexaminations, renewals, divisions, continuations, continuation-in-parts and foreign counterparts of any of the foregoing. 

  

	1.9	“Valid Claim” means any issued patent claim within the Patent Rights that has not expired or been held invalid or unenforceable in a decision by a patent office or
by a court of competent jurisdiction in a ruling that is unappealable or unappealed within the time allowed for appeal. 

  

	2.	GRANT 

  

	2.1	License. Licensor hereby grants to Mayo and each Mayo Affiliate a worldwide, nonexclusive license, without the right to sublicense, under the Patent Rights to make, use,
sell, offer for sale and import Licensed Products and Licensed Services and practice any methods covered by the Patent Rights. 

  

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	3.	PAYMENTS 

  

	3.1	Upfront Payment. Mayo shall pay Licensor the sum of fifteen thousand dollars (US$15,000), which shall not be creditable against Royalties. Payments shall be made within ten
(10) days of the Effective Date. 

  

	3.2	Milestone Payments. Mayo shall immediately notify Licensor when the following events are accomplished and pay the Licensor the following amounts within ninety days
(90) of each respective event. 

  

	 	(a)	Upon reaching five hundred thousand dollars ($500,000) in cumulative Net Sales of Licensed Product or Service by Mayo and its affiliates: twenty five thousand dollars ($25,000).

  

	 	(b)	Upon reaching one million dollars ($1,000,000) in cumulative Net Sales of Licensed Product or Service by Mayo and its affiliates: fifty thousand dollars ($50,000).

  

	3.3	FDA Relabeling. Upon written notice from Licensor that the United States Food and Drug Administration has relabeled an existing drug or labeled a new drug to require the
Licensed Service or Licensed product prior to prescribing or as part of the clinical treatment, then, Mayo shall pay Licensor a one-time “Relabeling Fee” of $25,000 within thirty (30) days of such FDA Relabeling.

  

	3.4	Royalties. 

  

	 	(a)	Royalty Amount. Mayo shall pay to Licensor, on a calendar quarter basis, royalties equal to six percent (6 %) of the Net Sales of Licensed Products or Licensed Services.

  

	 	(b)	Royalty Reports. After the first commercial sale of a Licensed Product or a Licensed Service anywhere in the world, Mayo shall submit royalty income reports to Licensor along
with each calendar quarter payment. Each such report shall contain any information reasonably necessary to calculate accurately the amounts to be paid to Licensor. 

  

	 	(c)	 Combination Offering. In the event that a Licensed Product or a Licensed Service is also a Combination Offering, then the Net Sales on which earned royalties
are payable by Mayo shall be calculated as hereinafter set forth. The Net Sales on which an earned royalty is payable for the sale of a Combination Offering shall be the portion of the sales price of the Combination Offering equal to the fair market
value of the Licensed Product or Licensed Service (on which Net Sales Mayo shall pay the royalty rate set forth herein) as compared to the sales price of the Combination Offering. The values described above shall be determined by mutual agreement of
Mayo and Licensor based upon the then-available facts and circumstances, 

  

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particularly, for example, data as to the sale price of the distinct components when sold separately, if available, or the increased sales prices of a
Combination Offering when it has the particular component, as distinguished from the sales price of the same or similar product or service when it does not have the particular component. If Mayo and Licensor do not reach mutual agreement on such
values, then Mayo and Licensor shall submit the determination to a mutually acceptable third party. 

  

	 	(d)	Most Favored Licensee. If Licensor licenses the Patent Rights to any third party on, royalty terms based on cash payments that are more favorable to such third party than the
royalty set forth in Section 3. l(a), Licensor shall immediately notify Mayo of such more favorable royalty terms and Mayo shall be entitled to reduce the royalty amount due under Section 3.1(a) to be the same as the more favorable royalty
terms granted by Licensor to such third party. Notwithstanding the other provisions of this Section 3.4(d), Licensor shall be permitted to (i) enter into licenses for the Patent Rights with a third party for non-cash consideration,
(ii) enter into licenses for the Patent Rights with a third party fee volumes of diagnostic products or services covered by the Patent Rights and which exceed such volumes performed by Mayo and Mayo Affiliates on an annual basis,
(iii) enter into licenses for the Patent Rights with a government agency, or (iv) sell diagnostic kits to end users, each without triggering the most favored license” provisions herein. 

  

	3.5	Payment Terms. Unless otherwise expressly agreed in writing by the parties, payments due on a quarterly basis shall be due within thirty (30) days of the end of such
calendar quarter. 

  

	3.6	Overdue Payments. Payments due to Licensor under this Agreement shall, if not paid when due under the terms of this Agreement, bear simple interest at the lower of the prime
rate of interest (as published by Citibank, N.A. on the date such payment is due) plus one and one-half percent (1.5%) or die highest rate permitted by law, calculated on the basis of a 360-day year for the number of days actually
elapsed, beginning on the due date and ending on the day prior to the day on which payment is made in full. Mayo shall pay for all costs and fees including reasonable attorney’s fees that Licensor must expend in order to collect any amounts due
and owing to Licensor after reasonable attempts have been made to collect the amounts or, in Licensor’s discretion, after the amounts remain outstanding for a period of ninety (90) days from the payment due date. 

 

	4.	AUDIT RIGHTS 

  

	4.1	Records. Mayo shall use commercially reasonable efforts to keep accurate and correct records of all payments received by Mayo and Mayo’s Affiliates for Licensed Products
and Licensed Services. Such records shall be retained by Mayo for at least two (2) years following a given reporting period. 

  

	4.2	 Audits. All business records of Mayo and Mayo Affiliates shall be available during normal business hours for inspection at the expense of Licensor by a
nationally recognized certified public accountant selected by Licensor and acceptable to Mayo for the sole purpose of verifying reports and payments or other compliance issues. Prior to such inspection, Mayo may require such inspector to sign a
confidentiality agreement in a form acceptable to Mayo and consistent with this Section 4.2. Such inspector shall not disclose to Licensor any 

  

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information other than information relating to the accuracy of reports and payments made under this Agreement or other compliance issues. In the event that
any such inspection shows an underreporting and underpayment in excess of five percent (5%) for any twelve (12) month period, then Mayo shall pay the cost of the audit as well as any additional sum that would have been payable to Licensor
had Mayo reported correctly. 

  

	5.	NONDISCRIMINATORY ENFORCEMENT OF PATENT RIGHTS 

  

	5.1	Patent Infringement. 

  

	 	(a)	Each party shall notify the other party in writing of any suspected infringements of the Patent Rights. 

  

	 	(b)	As between Licensor and Mayo, Licensor shall have the sole right, but not the obligation, to institute and control the prosecution of a suit or to take any other action for any of
the Patent Rights. If, within ninety (90) days of receiving notice of a suspected infringement of the Patent Rights, Licensor has not either (i) executed a royalty-bearing license agreement with such suspected infringer, which shall be
subject to Section 4. l(e), or (ii) instituted a suit to enforce the Patent Rights against such suspected infringer, Mayo shall be entitled to reduce its royalty payments under Section 3.1 by fifty percent (50%). If Licensor
institutes but later abandons or settles a suit against a suspected infringer without requiring either (x) payment of royalties by such suspected infringer, or (y) the cessation of the allegedly infringing activities, Mayo shall also be
entitled to reduce its royalty payments under Section 3.1 by fifty percent (50%). 

  

	6.	USE OF NAME AND LOGO 

 Licensor will not use publicly for publicity, promotion, or otherwise, any logo, name, trade name, service mark, or trademark of Mayo or any Mayo Affiliate, including, but not limited to, the terms “Mayo®,” “Mayo Clinic®,” and the triple shield Mayo logo, or any simulation, abbreviation, or adaptation of the same, or the
name of any Mayo employee or agent, without Mayo’s prior, written, express consent. Mayo may withhold such consent in Mayo’s absolute discretion. Violation of this Section 6 constitutes a material breach of this Agreement.
Notwithstanding the language above, Mayo can publicize the execution of the agreement at Mayo’s discretion. 
  

	7.	RELEASE 

 Licensor irrevocably releases, acquits,
discharges, and holds harmless Mayo and each Mayo Affiliate from all asserted and unasserted claims that Licensor may have that Mayo or such Mayo Affiliate’s actions or conduct of its business prior to the Effective Date infringed, or induced
or contributed to the infringement of, any of the Patent Rights. 
  

 Page 5 of 12 

	8.	TERMINATION OF THE AGREEMENT 

  

	8.1	Term. Unless terminated earlier in accordance with this Section, this Agreement shall be effective beginning on the Effective Date and ending on the expiration date of the
longest-lived Valid Claim (the “Term”). 

  

	8.2	Termination by Licensor. If Mayo materially fails to perform or materially violates any term of this Agreement, then Licensor may give written notice of default
(“Notice of Default”) to Mayo. If Mayo fails to cure a payment default within forty-five (45) days, or a material default other than a payment default, within ninety (90) days of the Notice of Default, Licensor may
terminate this Agreement and the license granted herein by a second written notice (“Notice of Termination”) to Mayo. If a Notice of Termination is sent to Mayo, this Agreement shall automatically terminate on the effective date of
that notice. 

  

	8.3	Termination by Mayo. Mayo shall have the right at any time and for any reason, or no reason at all, to terminate this Agreement upon a thirty (30) day written notice to
Licensor. Said notice shall state Mayo’s reason, if any, for terminating this Agreement. 

  

	8.4	Survival on Termination. Sections 1 (Definitions), 4 (Audit Rights), 6 (Use of Name and Logo), 7 (Release), 8.4 (Survival), 8.5 (Disposition of Licensed Products on Hand), 10
(Limitation of Liability) and 11 (Miscellaneous) shall survive the termination or expiration of this Agreement. 

  

	8.5	Disposition of Licensed Products on Hand. Upon termination of this Agreement by either party: 

  

	 	(a)	Mayo shall return to Licensor any tangible examples and prototypes of the Patent Rights, including any schematics, diagrams, designs and molds delivered to Mayo by Licensor pursuant
to Section 2.2; and 

  

	 	(b)	Mayo and any Mayo Affiliates may dispose of all previously made or partially made Licensed Product within a period of one hundred and twenty (120) days of the effective date of
such termination provided that the sale of such Licensed Product by Mayo and any Mayo Affiliates shall be subject to the terms of this Agreement, including but not limited to the rendering of reports and payment of royalties required under this
Agreement. 

  

	9.	REPRESENTATIONS AND WARRANTY 

  

	9.1	Representations and Warranties. 

  

	 	(a)	Licensor represents and warrants as of the Effective Date: 

  

	 	(1)	that it is the sole owner or exclusive licensee of the Patent Rights and has the lawful right to grant the license set forth herein; 

  

 Page 6 of 12 

	 	(2)	that the Patent Rights constitute all of the patents, issued or pending, of Licensor and all Licensor Affiliates encompassed by the definition of the Licensed Products and Licensed
Services; 

  

	 	(3)	that none of the Patent Rights are the subject of any pending interference, opposition, cancellation or other challenge or adversarial proceeding; 

  

	 	(4)	there are no outstanding liens, encumbrances, third party rights, agreements or understandings of any kind, either written, oral or implied, regarding the Patent Rights which are
inconsistent or in conflict with any provision of this Agreement; and 

  

	 	(5)	the execution and delivery of this Agreement, and the performance by Licensor of its obligations hereunder have been duly authorized by all necessary corporate or other action on
the part of Licensor, and no consents, waivers, or permissions that have not already been granted are required for such actions. 

  

	9.2	LICENSOR HEREBY DISCLAIMS ANY IMPLIED WARRANTIES WITH RESPECT TO THE PATENT RIGHTS, INCLUDING WITHOUT LIMITATION ANY WARRANTY OF MERCHANTABILITY, NON-INFRINGEMENT OF THIRD PARTY
RIGHTS, OR WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE. 

  

	10.	LIMITATION OF LIABILITY 

 NEITHER PARTY SHALL BE
ENTITLED TO RECOVER FROM THE OTHER PARTY ANY SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES, INCLUDING WITHOUT LIMITATION, LOST PROFITS, IN CONNECTION WITH THIS AGREEMENT OR ANY LICENSE GRANTED HEREUNDER, REGARDLESS OF ANY NOTICE
OF THE POSSIBILITY OF SUCH DAMAGES. 
  

	11.	MISCELLANEOUS PROVISIONS 

  

	11.1 	No Assignment. Neither party may assign its rights hereunder to any third party without the prior written consent of the other party; provided that Mayo may assign its rights
hereunder to any Mayo Affiliate and Licensor may assign its rights hereunder to any Licensor Affiliate, without the prior written consent of the other party. Any purported assignment in violation of this clause is void. Such written consent, if
given, shall not in any manner relieve the assignor from liability for the performance of this Agreement by its assignee. In the event Licensor determines to transfer any of the Patent Rights to any entity, Licensor must notify such entity, and such
entity must acknowledge in writing, that the Patent Rights are subject to this Agreement. 

  

	11.2 	Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties, their heirs, legal representatives, successors and permitted assigns.

  

	11.3 	Failure to Perform. In the event of a failure of performance due under this Agreement and if it becomes necessary for either party to undertake legal action against the other
on account thereof, then the prevailing party shall be entitled to reasonable attorney’s fees in addition to costs and necessary disbursements. 

  

 Page 7 of 12 

	11.4	Governing Law and Jurisdiction. This Agreement is governed by Minnesota law, but specifically not including Article 2 of the Uniform Commercial Code as enacted in Minnesota.
This is not an agreement for the sale of goods. In addition, no Minnesota conflicts-of-law or choice-of-laws provisions apply to this Agreement. To the extent the substantive and procedural law of the United States would apply to this Agreement, it
supersedes the application of Minnesota law. Either party may seek (i) injunctive relief or (ii) the enforcement of judgments, in any court of competent jurisdiction, no matter where located. 

  

	11.5	Force Majeure. A party to this Agreement may be excused from any performance required herein if such performance is rendered impossible or unfeasible due to any catastrophe
or other major event beyond its reasonable control, including, without limitation, war, riot, and insurrection; laws, proclamations, edicts, ordinances, or regulations; strikes, lockouts, or other serious labor disputes; and floods, fires,
explosions, or other natural disasters. When such events have abated, the non-performing party’s obligations herein shall resume. 

  

	11.6	Headings. The headings of the several sections are inserted for convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation
of this Agreement. 

  

	11.7	Entire Agreement. This Agreement, together with the Exhibits hereto, which are hereby incorporated herein, constitutes the final, complete and exclusive agreement between the
parties with respect to its subject matter and supersedes all past and contemporaneous agreements, promises, and understandings, whether oral or written, between the parties. 

  

	11.8	Amendments. This Agreement may not be amended or modified except by a writing signed by both parties and identified as an amendment to this Agreement.

  

	11.9	Independent Contractor. It is mutually understood and agreed that the relationship between the parties is that of independent contractors. Neither party is the agent,
employee, or servant of the other. Except as specifically set forth herein, neither party shall have nor exercise any control or direction over the methods by which the other party performs work or obligations under this Agreement. Further, nothing
in this Agreement is intended to create any partnership, joint venture, lease, or equity relationship, expressly or by implication, between the parties. 

  

	11.10 	Notices. All notices and other business communications between the parties related to this Agreement shall be in writing, sent by certified mail, addressed as follows:

  
  

			
	If to Licensor:	  	AutoGenomics Inc
		
	 	  	2251 Rutherford Road
		
	 	  	Carlsbad, CA 92008
		
		  	Atta: Fareed Kureshy
		
		  	Facsimile Number: 760-804-7382

  

 Page 8 of 12 

 If to Mayo: 
  

			
	If to LICENSEE:	  	MAYO Foundation for Medical Education and Research
		
	 	  	3050 Superior Drive SW
		
	 	  	Rochester, MN 55901
		
		  	Attn: David Herbert
		
		  	Facsimile Number: 507-538-1278
		
	With copy to:	  	MAYO Foundation for Medical Education and Research
		
		  	200 First Street SW
		
		  	Rochester, MN 55905
		
		  	Attn: Legal Department

  
 Notices sent by certified mail
shall be deemed delivered on the third day following the date of mailing. Either party may change its address or facsimile number by giving written notice in compliance with this section. 
  

	11.11 	Severability. In the event any provision of this Agreement is held to be invalid or unenforceable, the remainder of this Agreement shall remain in full force and effect as if
the invalid or unenforceable provision had never been a part of the Agreement. 

  

	11.12 	Waiver. The failure of either party to complain of any default by the other party or to enforce any of such party’s rights, no matter how long such failure may continue,
will not constitute a waiver of the party’s rights under this Agreement. The waiver by either party of any breach of any provision of this Agreement shall not be construed as a waiver of any subsequent breach of the same or any other provision.
No part of this Agreement may be waived except by the further written agreement of the parties. 

  

	11.13 	Counterparts. This Agreement may be executed in any number of counterparts which, when taken together, will constitute one original, and photocopy, facsimile, electronic or
other copies shall have the same effect for all purposes as an ink-signed original. 

  

 Page 9 of 12 

	11.14 	Third Party Beneficiaries. Except as otherwise expressly stated herein or by separate written agreement signed by the parties, there shall be no third party beneficiaries of
this Agreement. This Agreement is intended only to benefit the parties hereto, and they have no intention of creating any rights, interests, or benefits whatsoever for any other parties. Notwithstanding the foregoing, the parties hereby agree each
of the Mayo Affiliates is an intended third party beneficiary of this Agreement, and shall be entitled to enforce its rights under this Agreement. 

 [Remainder of page intentionally blank] 
  

 Page 10 of 12 

 The parties have signed this Agreement as set forth below: 
  

									
	MAYO FOUNDATION FOR MEDICAL EDUCATION AND RESEARCH:	 		 	Autogenomics, Inc.:
					
	Signed:	 	/s/ Jonathan J. Oviett	 		 	Signed:	 	/s/ Fareed Kureshy
	 Printed Name:
	 	Jonathan J. Oviett	 		 	 Printed Name:
	 	Fareed Kureshy
	 Title:
	 	Secretary	 		 	 Title:
	 	President & CEO
	 Date:
	 	4.19.06	 		 	 Date:
	 	April 14th 2006

  

 Page 11 of 12 

 EXHIBIT A 
 Patent Rights 
 U.S. Patent No. 6,183,963 
  

 Page 12 of 12

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