Document:

Statement of Work #3, Dated June 29, 2010

 Exhibit 10.18(b) 

Confidential 

STATEMENT OF WORK # 3 

FORD SYNC SYSTEM GEN 2 

BETWEEN 

FORD MOTOR COMPANY 

AND 

BSQUARE CORPORATION 
 This
“Statement of Work # 3” (herein referred to as “Statement of Work # 3”) is entered into as of June 29, 2010 and shall hereby amend the terms provided under the SYNC Generation 2 Hardware Design and System Integration
Services Global Terms & Conditions, dated December 30, 2009 (the “GTC”), by and between BSQUARE Corporation (“Supplier” or “BSQUARE”) and Ford Motor Company (“Buyer”, “Ford” or
“Company”), concerning the products and services provided herein. The GTC, Statement of Work # 3, and the Purchase Order corresponding to this Statement of Work # 3 (the “PO”) are collectively referred to as the “Ford
Competency Center Agreement” or as “FCC”. Unless otherwise specified herein, all definitions, terms and conditions of the GTC only shall apply to this Statement of Work # 3 and none of the terms in any prior Amendment, SOW, or
Purchase Order shall apply to work done pursuant to the FCC and this Statement of Work # 3. The “Effective Date” of this Statement of Work # 3 shall be June 14, 2010. 

WHEREAS, Buyer and Supplier have negotiated to restructure their working relationship in the form of the FCC, the structure of which they intend to
govern work performed for Buyer by Supplier beginning on Effective Date; 
 WHEREAS, Supplier has committed to providing certain resources for a
minimum period of time for work performed under this Statement of Work # 3, including resources specifically requested by Buyer and, in return, Buyer is committing to pay for those resources for the same minimum period of time; and 

NOW, THEREFORE, in consideration of the obligations of each of the parties set forth in this Statement of Work # 3, the parties hereto agree as follows:

  

	1.	Purchase Order. By executing this Statement of Work # 3 Ford agrees to issue a purchase order for the FCC in accordance with the Fees and Terms in Attachment A
of this Statement of Work # 3, which is incorporated herein by this reference and to pay the fees invoiced by Bsquare in accordance with this Statement of Work # 3. 

 

	2.	Terms. The terms of the FCC shall be defined in Attachment A. 

  

	3.	GTC Modifications. The following modifications are made to the GTC’s with respect to all work performed by Bsquare pursuant to this Statement of Work # 3:

  

	 	a.	The “Term” of the Agreement as specified by Section 8 of the GTC’s shall be modified and amended as set forth in Attachment A, for purposes of this
Statement of Work #3. 

  

	 	b.	Section 10.04 of the GTC’s is amended, for purposes of this Statement of Work #3, as follows: 

10.04 Total Price and Taxes Buyer will be responsible for duty, if applicable, and tax unless otherwise specified in the Tax
Web-Guide. The Supplier will separately show on its invoice any duties, and any sales tax, which includes the State of Michigan’s modified gross receipts tax, use tax, value-added tax (VAT) or similar turnover taxes, levied on the Goods. The
Supplier will provide whatever documents and information the Buyer may require to support taxes paid, tax reporting, or recovery of VAT. The Supplier will comply with the requirements of the Tax Web-Guide. The Supplier will pay duty if the delivery
term specified on the Purchase Order requires the Supplier to pay it (see the Delivery Terms Web-Guide for more details). 
  

	 	c.	Section 14 of the GTC’s is deleted and replaced in its entirety with the following: 

SECTION 14. DELIVERY OF NONCONFORMING GOODS 

14.01 Delivery The Buyer agrees that there shall be no conformity requirements for Goods delivered under the FCC and all
modifications or corrections shall be made by Supplier pursuant to and in accordance with the other provisions of the FCC. 
  

 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

 Confidential 

 

 14.02 No Other Rights The provisions of this Section 14 shall apply
regardless of when such nonconformity is discovered, even if the nonconformity does not become apparent until after delivery of the Goods. 
  

	 	d.	Immediately following the Acceptance (as defined in Amendment # 1), Section 22 of the GTC’s is deleted in its entirety and replaced with the following:

 SECTION 22. WARRANTY 

Supplier Warrants that the work performed under this Statement of Work #3 shall be performed in a professional and workmanlike manner and
that the Goods delivered under this Statement of Work #3 will substantially conform to accepted quality standards in the software industry. Buyer’s sole remedy for a failure of Supplier’s warranty obligation is for Supplier to repair or
replace. ‘Repair or replace’ means as the case may be, creating and delivering a software update or patch if related to software, re-doing work if related to services, or replacement of hardware if related to hardware and includes paying
for the actual costs of re-manufacture, re-distribution, or re-installation as applicable, whether incurred by Supplier or by Buyer. Ford has the right at any time to request removal and replacement of any developer whose work covered by this
Statement of Work #3, does not meet the standards above. 
  

	 	e.	Section 25 of the GTC’s is deleted in its entirety. 

  

	 	f.	Section 26.09 is deleted in its entirety and replaced with the following: 

Supplier will be liable for all direct losses, costs, and expenses incurred by the Buyer resulting from any failure by the Supplier to
comply with any of the requirements of the Purchase Order (even if the Supplier has cured the noncompliance under Section 26.02), or from termination by the Buyer under Section 26.01 or 26.04, and termination under those
sections does not relieve the Supplier from this liability. Such liability is limited to a maximum of eleven million US dollars ($11,000,000). 
  

	 	g.	Section 27 is deleted in its entirety and any additional termination rights not specified in Section 26 shall be delineated in Attachment A of this Statement
of Work # 3. 

  

	 	h.	Section 29 is deleted and does not apply in its entirety to this Statement of Work #3. 

 

	 	i.	Section 48.01 of the GTC’s with respect to this Statement of Work #3 is deleted and replaced in its entirety with the following:

 48.01 Supplier’s total liability arising under this Agreement for work performed under the FCC shall
be limited to eleven million US dollars ($11,000,000). In no event shall Supplier be liable to Buyer for any indirect, incidental or consequential or special losses, costs, damages or expenses, including without limitation any lost profits, lost
savings, or other incidental damages arising out of the Agreement even if the Supplier has been notified of the potential for such damages. 
  

	4.	Other Terms. All other terms and conditions of the GTC are unchanged and remain in full force and effect. In case of a conflict, the terms of this Statement of
Work # 3 (including its attachments and amendments) will control and prevail over those contained in the GTC. 

  

	5.	This Statement of Work # 3 shall be effective on the Effective Date. This Statement of Work # 3 shall not be valid or effective unless and until it is signed by both
Supplier and Buyer. This Statement of Work # 3 may be executed in counterparts as, for example, by exchanging signed copies by fax machine. 

  

 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

 Confidential 

 

 IN WITNESS WHEREOF, this Statement of Work # 3 has been duly executed by the parties hereto, as
of the Effective Date. 
  

									
	FORD MOTOR COMPANY:	  		  	BSQUARE CORPORATION:
					
	By:	  	 /s/ Jason Rodriguez
	  		  	By:	  	 /s/ Scott C. Mahan

					
	Name:	  	 Jason Rodriguez
	  		  	Name:	  	 Scott C. Mahan

					
	Title:	  	 Buyer
	  		  	Title:	  	 Chief Financial Officer

					
	Date:	  	 June 29, 2010
	  		  	Date:	  	 June 29, 2010

 

 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

 Confidential 

 

 Attachment A 

Ford Competency Center (the “FCC”) will be a Staff Augmentation model, Buyer will be managing the resultant output and this will supersede all
other agreements. However, as stated in the terms of this Statement of Work #3, commercial terms will be still governed by the “GTC” as amended. 
  

	 	1.	FCC Phase 1 Rates & Resources 

TABLE A 
 The table below reflects the
annual rate for the Phase 1 personnel for the 1 year commitment for each person. 
  

											
	 Name
	  	 Practice Area
	  	 Location
	  	FCC
Rate	 	 	Annual Rate
Total	 
	FCC 1 year core	  		  		  			 		
	 ***
	  	Applications	  	Akron	  	*	** 	 	*	** 
	 ***
	  	Applications	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Applications	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Platform	  	Akron	  	*	** 	 	*	** 
	 ***
	  	Platform	  	Akron	  	*	** 	 	*	** 
	 ***
	  	Platform	  	Akron	  	*	** 	 	*	** 
	 ***
	  	Quality Assurance	  	Akron	  	*	** 	 	*	** 
	 ***
	  	Platform	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Applications	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Applications	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Program Management	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Applications	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Program Management	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Exec Mgt	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Applications	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Platform	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Platform	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Quality Assurance	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Quality Assurance	  	Dallas	  	*	** 	 	*	** 
	 ***
	  	Platform	  	UK	  	*	** 	 	*	** 
		  		  		  			 	*	** 

  

 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

 Confidential 

 

 TABLE B 

The table below reflects the quarterly rate for the additional Phase 1 FCC personnel for the 90 day commitment for each person. 

 

											
	 Name
	  	 Practice Area
	  	 Location
	  	FCC Rate	 	 	90 Day Total	 
	FCC 90 day transition Team	  		  		  			 		
	 ***
	  	Applications	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Hardware	  	Akron	  	*	** 	 	*	** 
	 ***
	  	Quality Assurance	  	Akron	  	*	** 	 	*	** 
	 ***
	  	Quality Assurance	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Platform	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Platform	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Quality Assurance	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Quality Assurance	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Applications	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Applications	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Applications	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Build	  	Longmont	  	*	** 	 	*	** 
	 ***
	  	Quality Assurance	  	Longmont	  	*	** 	 	*	** 
	 ***
	  	Applications	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  	Applications	  	Bellevue	  	*	** 	 	*	** 
	 ***
	  		  		  			 		

  

 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

 Confidential 

 

	 	2.	FCC Terms 

  

	 	a)	Buyer is committed to fund and pay for the FCC 1 Year Core Team individuals as provided in Table A above (a minimum of 20 individuals) for a period of one year and the
FCC 90 Day Transition Team individuals as provided in Table B above (a minimum of 15 individuals) for a period of 90 days. For clarity, Buyer is committing to pay for each individual for the specified period of time. If an FCC resource is removed
from the program by Buyer because of termination or other reasons, and a suitable replacement cannot be found and approved by Buyer, Buyer’s commitment shall be reduced by that headcount(s). Buyer acknowledges, that to the extent an FCC
resource is made available to it, that it is obligated to pay the fees associated with the resources in Tables A and B for either one (1) year in the case of Table A resources and 90 days in the case of Table B resources regardless of whether
Buyer is requesting these resources to perform work on Buyer’s programs; 

  

	 	b)	Commencing on the Effective Date, all FCC personnel shall be deployed to remedy the Sev 1-2 Bugs (as defined in Amendment # 1). If all Sev 1-2 Bugs are not remediated
on or prior to June 28, 2010, Buyer shall not be responsible for FCC personnel working on Sev 1-2 Bugs under this Statement of Work #3 from the Effective Date until Acceptance (as defined in Amendment #1). In such event, the term of this
Statement of Work # 3 for the affected individuals shall be extended for a length of time equal to the time between June 28, 2010 and the Acceptance date. FCC personnel requested by Buyer to work on non – Sev 1-2 Bugs shall be billable
under this Statement of Work 3; 

  

	 	c)	 Buyer will pre-pay an amount approximating the costs and expenses for the first six (6) months of the FCC program, in advance. This pre-payment
amount shall be $3,000,000. Buyer shall issue a Purchase Order and pay this amount on or before June 30, 2010. Supplier shall provide Buyer with a monthly statement showing a reconciliation of the prepaid amount against un-invoiced
charges. Once the prepaid amount has been exceeded, further fees and expenses due under the FCC shall be invoiced monthly. The fees for the resources specified in Table A shall be invoiced at
1/12th of the Annual Rate Total specified above. The fees
for the resources specified in Table B shall be invoiced at 1/3rd of the 90 Day Rate Total specified above. Fees for partial months shall be prorated based on total calendar days in the month; 

 

	 	d)	Buyer acknowledges that the Annual Rate Total and 90 Day Rate Total are inclusive of time spent by engineering resources on activities other than Buyer’s programs,
up to and including paid-time off, Supplier-related company meetings etc. provided that if overall utilization (i.e. time charged to Buyer’s programs as evidenced by Supplier’s time-keeping records as measured by the time charged divided
by total available hours in the period excluding weekends) falls below 80%, Buyer will receive a credit for every hour below the 80% utilization level using the FCC Hourly Rate. For purposes of this section, the utilization calculation shall be
performed on a quarterly basis beginning with the week ending on the first Friday of the calendar quarter and ending on the last Friday of the calendar quarter. Further, the calculation shall be aggregated to include all resources assigned to
Buyer’s programs under this Amendment #2. Buyer further acknowledges that if program resources aren’t being utilized on Buyer’s programs (i.e. there is downtime on the program, by election of Buyer), the time spent by program
resources on other activities shall be included in the utilization calculation as Buyer project time; 

  

	 	e)	Buyer may request additional personnel and Supplier will use commercially reasonable efforts to add the requested personnel within the time period specified by Buyer.
Buyer will specify whether additional resources will be considered Table A (1 year commitment) or Table B (90 day commitment) resources. For convenience, Buyer’s commitment for these additional resources shall be only the time remaining on the
original commitment under this Amendment #2. Example, if on July 11, 2010, Buyer adds an engineering resource under Table B, Buyer’s remaining firm commitment on that resource shall be two calendar months. Buyer will pay the rates agreed
to in the Tables above for all additional personnel; 

  

	 	f)	Buyer approves all Supplier resources assigned to the FCC; 

  

 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

 Confidential 

 

	 	g)	Program assignments for FCC resources shall be managed by Buyer Product Development Engineers; including but not limited to SYNC product development daily &
project tasks, development, and support of deliverables selected by Buyer. Administrative and/or Human Resource tasks are excluded and should be handled by Supplier; 

 

	 	h)	Buyer may request that FCC resources work overtime. FCC resources are under no obligation to work overtime. Maximum overtime that Buyer may request of FCC resources is
32 additional hours per month in the case of a calendar month in which there are four (4) Fridays in that month or 40 additional hours in which there are five (5) Fridays in a month. For clarify, overtime is any time requested above a
standard 40 hour work week, excluding holidays; Supplier must have written approval (which may include email) from Buyer for FCC resources prior to commencing overtime; 

 

	 	i)	Hourly rates, where applicable in terms of fee calculation under this Amendment #2, shall not exceed the rate tables above at anytime, including overtime. However,
Buyer shall be obligated to pay all additional cost incurred by Supplier as a result of any overtime, holiday or other extraordinary work commitments required and approved in writing (which may include email) by Buyer in advance. These additional
costs will include, but are not limited to, the additional fees or bonuses that Supplier pays employees and other overtime-related expenses incurred by Supplier including overtime meal expense; 

 

	 	j)	Buyer will be liable for travel related expenses including transportation, meals lodging, and other travel related expenses. Travel must be pre-approved in writing
(which may include email) by Buyer before commencing. Supplier will invoice Buyer for travel time at the hourly rates specified in the tables above to the extent Supplier’s engineering resources are requested to travel outside normal business
hours. Travel related expenses will generally be invoiced monthly; 

  

	 	k)	Time involved with monthly reporting, hours analysis, paid time-off (“PTO”) requests, FCC resource management, purchasing etc. and administration of the FCC
and FCC personnel shall be provided by the dedicated FCC personnel; 

  

	 	l)	Except as otherwise stated herein, all fees and expenses will be paid in accordance with the GTC; 

 

	 	m)	Any expenses related to attendance by Supplier personnel at Supplier related events and/or training; shall be the responsibility of Supplier; 

 

	 	n)	Supplier will provide one development desktop machine or laptop with appropriate development software for each FCC personnel. Build, SVN and TestTrack servers and or
Stability Lab equipment currently utilized by Supplier on Ford programs will be made available to Buyer, free of charge, for a period of 90 days from the Effective Date; 

 

	 	o)	Supplier shall use best efforts to require its employee performing work under this Statement of Work #3 to execute Non Disclosure Agreement acceptable to Buyer.

  

	 	p)	Supplier will inform Buyer in writing of a Resource’s request for PTO (for non-emergency use) or training time off 30 days in advance of scheduled time-off
provided that PTO previously approved by Supplier prior to the start date of the FCC does not require approval by Buyer. Buyer will not withhold approval without good cause. Conflicts between Supplier and Buyer’s representatives will be
escalated to those representative’s managers. Infrequent Supplier Company meetings and Supplier’s annual holiday schedule do not require approval by Buyer. Note: PTO has been previously approved by Supplier for certain FCC Resources prior
to the start date of the FCC that must be honored; 

  

	 	q)	Supplier will use commercially reasonable efforts to inform Buyer within 30 days (for 1-year FCC) and 14 days (for 90 day FCC) of personnel changes to the FCC team,
including removal of previously assigned FCC resources. Buyer must approve all FCC team resource additions beyond those specified in the Tables above. Supplier will use commercially reasonable efforts to provide the personnel requested by Buyer.
Supplier shall have no obligation to maintain any individual who’s employment with Supplier is terminated or who is injured, disabled or unable to perform work functions; 

 

 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission. 

 Confidential 

 

	 	r)	Buyer agrees that it will not hire or offer employment to any Supplier employee engaged in the FCC without Supplier’s prior written approval, for a period of one
year following the date Supplier ceases to perform work for Buyer. However, if a Supplier employee resigns or leaves without inducement from the Buyer, Buyer has the right to offer employment and to hire such an individual at anytime; and

  

	 	s)	The Supplier may terminate or stop work under the FCC if Buyer fails to make payments when due and fails to remedy such non-payment within 45 days of receipt of written
notice of such failure, during which time, Supplier will participate in good faith in all dispute resolution and governance processes defined in the GTC. If Buyer fails to pay any amount due within 45 days of receipt of written notice of such
failure, Supplier may then terminate or stop work under the FCC if any future payment is not made within 10 days of receipt of written notice of a failure to pay. 

 

	 	3.	FCC Contingency Resource Plan 

  

	 	a)	In the event of a warranty claim pursuant to the GTC, (as amended by Amendment # 1), the following contingency plan will govern warranty-related work:

  

	 	i.	Buyer will establish a contingency fund to pay for warranty-related work; 

  

	 	ii.	The contingency fund will contain a minimum of $250,000 and a maximum of $500,000 for all warranty work for the warranty claim period specified in the GTC;

  

	 	iii.	For FCC resources re-assigned to address warranty claims, Buyer can assign approved resources to supplement the FCC; supplemental resources may include existing FCC
resources; 

  

	 	iv.	Quality and improvement actions shall not be covered in the contingency fund; 

 

	 	v.	Buyer must approve release of funding and/or payment based on approved warranty actions and/or campaigns; 

 

	 	vi.	Any costs exceeding the contingency fund will be the responsibility of Supplier; and 

 

	 	vii.	Supplier shall still be liable per the terms of the Agreement (between Buyer Motor Company and Supplier). 

 

 Confidential treatment has been requested for portions of this agreement. This agreement omits the
information subject to the confidential treatment request. Omissions are designated as ***. A complete version of this agreement has been filed separately with the Securities and Exchange Commission.Patent Assignment and License Agreement, dated May 21, 2008

 Exhibit 10.1 

EXECUTION COPY 

This PATENT ASSIGNMENT AND LICENSE AGREEMENT, dated May 21, 2008 (“Effective Date”), is entered into by and between
Ribotask ApS, having its offices at Søndre Boulevard 44, 3, 5000 Odense C, Denmark, being a corporation established under the laws of Denmark (“Assignor”), and Nastech Pharmaceutical Company Inc., having its offices at 3830
Monte Villa Parkway, Bothell, WA 98021, being a corporation established under the laws of the State of Delaware, United States of America (“Assignee”). 

WHEREAS, Assignor has the right to assign the Assigned Patents (as defined below) and Assignee desires to acquire ownership of the
Assigned Patents; and 
 WHEREAS, Assignor desires to obtain a certain license from Assignee to the Assigned Patents;

 NOW THEREFORE, in consideration of the premises and mutual covenants herein contained, Assignor and Assignee agree as
follows: 
 Section 1. Certain Definitions; Interpretation  

1.1 For the purposes of this Agreement, unless the context otherwise requires, the following terms will have the respective meanings set
out below and grammatical variations of such terms will have corresponding meanings: 

“Agreement” means this Patent Assignment and License Agreement. 

“Assigned Patents” means all patents and applications for patent identified in Exhibit A hereto and
any existing or future foreign counterpart patents or patent applications claiming priority from any of the patents listed on Exhibit A and any substitutes, divisions, continuations, continuations-in-part, reissues,
renewals, extensions, supplementary protection certificates, and the like of any of such patents listed on Exhibit A or foreign counterparts. 

“Affiliate” means a corporation or business entity that directly or indirectly (1) is controlled by, controls, or
is under common control with any entity (which solely for the purpose of this definition means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a corporation or other business
entity, whether through the ownership of fifty percent (50%) or more (or the maximum ownership interest permitted by law) of the voting securities or other interest in the corporation or business, by contract, or otherwise) or (2) has the
right to be allocated net income or to receive payment of cash equal to fifty percent (50%) or more (or the maximum interest permitted by law) of such net income or cash. 

 “Confidential Information” means all proprietary and non-public business or
technical information, whether or not patentable, disclosed by one Party to the other Party either in writing and marked “confidential” or disclosed orally and reduced to a writing marked “confidential” within 30 days after the
initial oral disclosure and shall include, without limitation, all Patent-Related Information, which shall be deemed Confidential Information of Assignee from and after the Effective Date. Notwithstanding the foregoing, “Confidential
Information” shall not include any information that: (i) was in the public domain as of the Effective Date or comes into the public domain during the term of this Agreement through no act of the receiving Party; (ii) was independently
known to the receiving Party as shown by the receiving Party’s written records prior to receipt from the disclosing Party, or made available to the receiving Party by a Third Party without any violation of the obligations of such Third Party or
the receiving Party to the other Party; (iii) is independently conceived, invented, or acquired by the receiving Party by persons who were not exposed to Confidential Information. 

“Cover” (including variations thereof such as “Covered” or “Covering”) means that the manufacture,
use, importation or sale of a product or material of any kind (whether in the form of a kit, reagent, testing material, or otherwise) would infringe a Valid Claim of an Assigned Patent in the absence of ownership of or a grant of rights under such
Assigned Patent. The determination of whether an item is Covered by a Valid Claim shall be made on a country by country basis. 

“Covered Product” means a product or material of any kind (whether in the form of a kit, reagent, testing material, or
otherwise), the manufacture, use, importation or sale of which is Covered by a Valid Claim contained in an Assigned Patent. 

“Net Sales” means the gross invoice price of each Covered Product invoiced by a Party or such Party’s Related
Parties to the first Third Party, after deducting (if not previously deducted) from the amount invoiced or received the following (provided such deductions shall be incurred reasonably for the benefit of the Covered Product): 

(a) trade and quantity discounts other than early pay cash discounts; 

(b) returns, rebates, chargebacks and allowances; 

(c) discounts pursuant to indigent patient programs and patient discount programs to include coupons; 

(d) retroactive price reductions that are actually allowed or granted; 

(e) sales commissions paid to Third Party distributors and/or selling agents (which shall not include sales organizations, whether
contracted or internal to the Assignee); and 
 (f) sales or excise taxes, custom duties, and other governmental charges,
to the extent separately stated on the applicable invoice. 
 “New Drug Application” means the procedure
defined by the United States Food and Drug Administration, which must be adhered to in order to obtain FDA approval of a new drug. 

“Party” or “Parties” means Assignor or/and Assignee. 

 

 2 

 “Patent Agency” means any federal, national, multinational,
state, provincial or local regulatory agency, department, bureau or other governmental entity with authority to grant legally enforceable protection to inventions or discoveries. 

“Patent-Related Information” means, for each Assigned Patent, the file wrapper and file history for such Assigned
Patent, any and all correspondence with any Patent Agency with respect to an Assigned Patent (including any application, whether or not a patent issued), and all internal disclosures, memoranda, legal opinions, prior art, data, lab notes, and other
documentation and materials relating to or implementing each invention disclosed in such Assigned Patent. 
 “Quarterly
Net Sales” shall mean the Net Sales invoiced during a calendar quarter (January-March, April-June, July-September and October-December). 

“Related Parties” means the Affiliates and sublicensees of a Party. 

“Third Party” means any individual, estate, trust, partnership, joint venture, association, firm, corporation, company
or other entity which is not a Party hereto or an Affiliate of such Party (or solely for purposes of calculating Net Sales, is not a sublicensee of such Party). 

“Valid Claim” shall mean (as to whether a molecule, formulation, method of use or other activity is Covered) any claim
set forth in an issued and unexpired Assigned Patent or application which Patent or application (i) has not been revoked or held unenforceable, unpatentable or invalid by a final decision of a court or a governmental agency of competent
jurisdiction (including without limitation any competent patent office), from which decision no further appeal is possible (ii) has not been withdrawn, disclaimed, denied or admitted by the holder of the application or the patent to be invalid
or unenforceable through reissue, re-examination, disclaimer or otherwise and (iii) with respect to a pending Patent application, has not been pending for more than ten (10) years. 

1.2 The division of this Agreement into sections and subsections and the insertion of headings are for convenience of reference only and
will not affect the interpretation of this Agreement. Unless otherwise indicated, any reference in this Agreement to a section or subsection refers to the specified section or subsection of this Agreement. 

1.3 In this Agreement, words importing the singular number only will include the plural and vice versa, words importing gender will
include all genders and words importing persons will include individuals, corporations, partnerships, associations, trusts, unincorporated organizations, governmental bodies and other legal or business entities of any kind whatsoever. 

1.4 In this Agreement “hereof”, “herein”, “hereby”, “hereto” and similar terms refer to this
Agreement and not to any particular clause, paragraph or other part of this Agreement. References to particular clauses are to clauses of this Agreement unless another document is specified. 

 

 3 

 1.5 In this Agreement “including” means including without limitation or prejudice
to the generality of any description, definition, term or phrase preceding that word, and the word “include” and its derivatives will be construed accordingly. 

Section 2. Assignment of Assigned Patents 

2.1 For and in consideration of the payments specified in Section 3 and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged by the Assignor, the Assignor hereby (subject to the terms of this Agreement) by these presents does sell, assign and transfer to Assignee all right, title and interest in the United States of America and
throughout the world in and to the Assigned Patents existing now or in the future, the inventions claimed in such Assigned Patents and the Patent-Related Information, including without limitation: 

(a) the right to prosecute the Assigned Patents with any Patent Agency, and to do so in its own name; 

(b) all right, title and interest in the United States of America and in the world, in, to and under all patents granted directly or
indirectly on or as a result of the Assigned Patents and any reissues, reexaminations, renewals or extensions of any thereof; 

(c) the right to claim any and all benefits with respect to the Assigned Patents which are or may be available in any country under the
International Convention For The Protection of Industrial Property, and any like treaties or laws; 
 (d) the right to claim
and to enjoy the benefit of any priority dates established by the Assigned Patents; and 
 (e) the right to sue for past,
present and future infringements of the Assigned Patents. 
 Assignor’s rights, title and interest (including in each case with respect to
clauses (a) through (e) above) are sold, assigned and transferred free and clear of all encumbrances, said Assigned Patents and the Patent-Related Information to be owned, held and enjoyed by the Assignee and its successors and assigns as
fully and exclusively as it would have been held and enjoyed by the Assignor had this assignment and transfer not been made. 

2.1.1 As promptly as practicable following the execution of this Agreement, Assignor shall deliver to Assignee all copies and other
physical embodiments of the Patent-Related Information in Assignor’s possession or control in such form as they may exist on the Effective Date. 

2.1.2 From and after the Effective Date, Assignee shall be solely responsible for all actions and all costs whatsoever, including
attorney’s fees, arising after the Effective Date and associated with the perfection of rights, title, and interest in and to the Assigned Patents, 

 

 4 

 
provided however, that promptly upon request by Assignee but in any event not later than thirty (30) business days after the Effective date, Assignor shall deliver to Assignee
an executed recordable assignment document having the form and substance of Exhibit B (including Attachment A thereto). Upon Assignee’s written request, Assignor shall execute and deliver to Assignee any written documents
necessary or appropriate, in Assignee’s sole discretion, to effectuate the assignment to Assignee of any and all of Assignor’s rights to the Assigned Patents as provided above, and will, at Assignee’s sole expense, execute all papers
and perform any other lawful acts requested by Assignee for the preparation, prosecution, procurement, maintenance, enforcement and defense of the Assigned Patents throughout the world, and will execute all documents and perform any other lawful act
necessary to vest in Assignee all of Assignor’s right, title and interest in and to the Assigned Patents. To the extent that, for any reason or no reason, the Assignor fails to comply with Assignor’s obligations described above, Assignor
hereby appoints Assignee as the Assignor’s attorney in fact to execute and deliver any documents, and perform any acts, that the Assignor would otherwise lawfully be obligated to execute and deliver or perform pursuant to this Section 2.1.

 2.1.3 Assignee’s representatives shall be responsible for preparing, perfecting, recording and translating any
documents that Assignee records to perfect its right, title and interest in Assigned Patents with the Patent Agencies in any jurisdiction. Assignee shall provide Assignor from time to time with any documents requiring Assignor’s signature to
the extent necessary for recording (together with an English translation thereof, if requested), in a form similar to Exhibit B except for any additional or different terms and conditions as may commonly exist or would be necessitated by law
in patent assignments by Assignor under the laws of the local jurisdiction. 
 2.1.4 Subject to Section 6.4 and 6.5, from
and after the Effective Date, Assignee shall have the sole and absolute discretion to control the preparation, filing, prosecution and maintenance of the Assigned Patents, using counsel of its choice, and the Assignor shall cooperate, at the sole
expense of the Assignee, with all reasonable requests of the Assignee for assistance in the preparation, filing, prosecution and maintenance of the Assigned Patents. Assignee shall be solely responsible for all costs whatsoever, including
attorney’s fees, arising after the Effective Date and associated with the preparation, filing, prosecution and maintenance of the Assigned Patents, including any maintenance fees which become due for the Assigned Patents after the Effective
date. Assignor agrees to assist Assignee in implementing such rights as follows: 
 (a) On or prior to the Effective Date,
Assignor shall have provided to Assignee a report listing all patent dockets and the names of attorneys, law firms or foreign patent agents, as the case may be, currently assigned to the preparation and prosecution of all Assigned Patents in the
United States and foreign jurisdictions. Such report shall accurately identify (i) all Assigned Patents that have foreign statutory bar dates (i.e., dates by which foreign or international patent applications must be filed), but which have not,
as of the Effective Date, been filed in the relevant foreign jurisdictions, and (ii) all maintenance and/or annuity fees (United States and foreign) on Assigned Patents that are due between the Effective Date and March 31, 2009.

  

 5 

 (b) Promptly following execution hereof, Assignor shall notify the attorneys, law firms and
foreign patent agents identified on the list referred to in Section 2.1.4(a) of the transactions contemplated by this Agreement, including the assignment hereunder to Assignee to all Assigned Patents. 

(c) Upon the written request of Assignee and at Assignee’s expense, Assignor will, through its foreign patent agents, provide
communications to, and receive communications from, foreign Patent Agencies regarding authorizations, patent filings and prosecution responses for a period of up to ninety (90) days after the Effective Date. 

(d) Assignee hereby grants to Assignor a power of attorney to act on behalf of Assignee and to direct attorneys and agents on behalf of
Assignee with respect to preparation, filing, prosecution and maintenance, as the case may be, for Assigned Patents for a period of ninety (90) days after the Effective Date to the extent necessary or appropriate to carry out the transition
activities contemplated by this Section 2.1.4. This power of attorney may be implemented by any of the patent counsel of Assignor or through the attorneys, law firms and foreign patent agents retained by Assignor (including those persons or law
firms expressly identified on the list referred to in Section 2.1.4(a)) such that those persons and law firms are authorized to rely upon this power of attorney. Unless there is insufficient time, prior to exercising a power of attorney,
Assignee shall be given the opportunity to comment on any pending action and such comments must be accepted by the person exercising the Power of Attorney. 

(e) Except as expressly provided in this Section 2.1.4, all patent application filing costs, all prosecution costs for pending
applications and all maintenance and annuity costs for the Assigned Patents shall be borne by Assignor if due or incurred prior to the Effective Date and shall be borne by Assignee if incurred after the Effective Date. However, the Parties agree
that Assignee shall reimburse Assignor for all patent application filing costs and all prosecution costs for pending applications reasonably incurred by Assignee with respect to the Assigned Patents during the period from May 1, 2008 through
the Effective Date. 
 2.1.5 The Assignor will execute all such documents and do all such acts as may be necessary or proper to
support the acceptance of any application included in the Assigned Patents and for procuring the grant of a patent pursuant to such application. In the event that the United States Patent and Trademark Office (“USPTO”) or any other Patent
Agency sends to either Party an objection, rejection, office action, a query, or a request demanding further information, clarification or explanation, the Assignor shall make available to the Assignee all information and render reasonable
assistance with a view to satisfying the USPTO or such Patent Agency that a patent should issue on the disclosed invention in the form applied for. 

2.1.6 In the event that the validity, enforceability or ownership of any Assigned Patent is challenged on any point upon which the
Assignor has or can procure information or advice which may assist in meeting and defeating or reducing the effect of such challenge, the Assignor agrees and/or undertakes to supply or procure the supply of such information and/or advice without
unreasonable delay but subject to the right to charge the Assignee out-of-pocket expenses properly and reasonably incurred in pursuance of this provision. 
  

 6 

 2.1.7 In support of the patenting and utilization of the inventions disclosed in the
Assigned Patents by Assignee, Assignor agrees, upon the written request of Assignee, to make corresponding assignments to Assignee, as may be appropriate, of its rights and remedies against the inventors thereof, or any of them, so far as relating
to such inventions and arising by operation of law, estoppel, implication or express contract, including, without limitation, those rights as expressed in contracts between Assignor and present and past employees and consultants. 

2.1.8 If the assignment of any Assigned Patents would impose or result in any obligation of Assignor to make any payments under
applicable law or by reason of agreement existing prior to the Effective Date to inventors under the laws of any country, Assignee hereby undertakes to make such payment in the place and stead of Assignor. Exhibit C hereto sets forth each
such obligation of Assignor in effect on the Effective Date, and Assignor agrees to notify Assignee in writing at least sixty (60) days in advance of incurring any additional obligation(s) to make such payments. 

2.2 In the event that Assignee shall contemplate or commence any judicial or administrative proceedings under any Assigned Patents,
Assignor shall cooperate with Assignee in respect of such proceeding or contemplated proceeding. Assignor’s cooperation shall include providing relevant information and documents that are in Assignor’s possession and making personnel
available on reasonable request for interview by counsel, and for execution of affidavits, depositions and trial testimony if reasonably deemed necessary or desirable. Assignee shall reimburse Assignor for all of Assignor’s out-of-pocket
expenses with respect to the foregoing. 
 2.3 Notwithstanding the above, Assignor shall without compensation assist in the
assignment of the Assigned Patents to the Assignee to a reasonable extent based on a comparable assignment within the industry. If Assignor assists Assignee beyond such reasonable extent, Assignor shall be entitled to charge Assignee a fee for the
assistance based on extra time used in compliance with industry standards. Any out-of-pocket expenses incurred by Assignor shall be reimbursed, if such expense prior was approved by Assignee. 

Section 3. Consideration 

3.1 As an inducement to Assignor to execute this Patent Assignment Agreement, Assignee hereby grants to Assignor a royalty-bearing,
worldwide, exclusive (even as to Assignee) license (with the right to sublicense) to use the inventions, ideas and information embodied in the Assigned Patents to develop, make, use and sell products intended solely for use as reagents or products
and methods intended solely for use in testing for and diagnosing Conditions in humans, animals or organisms, as well as products and methods intended for predicting or testing the effect of treatment of Conditions in humans or animals. The term
“Conditions” includes but is not limited to conditions which are classified as “diseases”. 
  

 7 

 3.1.1 All rights under the Assigned Patents other than those expressly provided in this
Section 3.1 are hereby reserved to Assignee. For the avoidance of doubt, Assignor shall have no right under such license to develop, make, use and sell products intended for therapeutic use. 

3.1.2 Assignor will use commercially reasonable efforts to commercialize (and shall cause its sublicensees, if any, to use commercially
reasonable efforts to commercialize) the Assigned Patents in accordance with the scope of its license hereunder. Assignor shall pay royalties on Net Sales of Covered Products under such license at the same rates and on the same basis as specified in
Section 3.2.6 hereof and the provisions of Section 3.2.7 and Sections 3.3 through 3.7 (with suitable modifications reflecting the reversal of roles of the Parties and the diagnostic nature of the Covered Products included in the license)
shall be deemed to constitute obligations of Assignor under such license. 
 3.1.3 Assignor’s obligation to make the
royalty payments on sales of Covered Products shall continue, on a country by country basis, until expiration of the last Assigned Patent with a Valid Claim Covering such Covered Product in such country. 

3.2 As consideration for the sale, assignment and transfer of the Assigned Patents and the Patent-Related Information to Assignee by
Assignor, Assignee agrees to pay to Assignor: 
 3.2.1 $500,000, payable in the following four installments: 

 

				
	 Date
	  	 Amount

	 Execution of Definitive Agreement
	  	$	50,000
	 August 1, 2008
	  	$	50,000
	 November 1, 2008
	  	$	200,000
	 February 1, 2009
	  	$	200,000

 3.2.2 within
thirty (30) days following presentation to Assignee of suitable documentation, all of Assignor’s costs and expenses relating to the prosecution of the Assigned Patents which first become due after May 1, 2008; 

3.2.3 a onetime milestone payment of $250,000 within thirty (30) days following the dosing of the first patient in the first
clinical trial in the United States or the European Union of the first Covered Product; 
 3.2.4 a onetime milestone
payment of $2,000,000 within thirty (30) days following the first approval obtained by Assignee or its Related Parties from the United States Food and Drug Administration (“FDA”) of a New Drug Application (“NDA”) for a
Covered Product; 
  

 8 

 3.2.5 a onetime milestone payment of $1,000,000 within thirty (30) days following
FDA approval of each NDA covering an additional Covered Product; 
 3.2.6 for each calendar quarter until the calendar
quarter in which the last Assigned Patent expires, royalties on aggregate worldwide Net Sales for such quarter according to the following schedule: 
  

				
	 Royalty Tier
	  	Royalty	 
	 On Quarterly Net Sales less than and including $100 million
	  	1	% 
	 On Quarterly Net Sales greater than $100 million and equal to or less than $200 million
	  	1.5	% 
	 On Quarterly Net Sales in excess of $200 million
	  	2	% 

 Royalty payments payable
hereunder will be paid to Assignor not later than forty-five (45) calendar days following the end of the calendar quarter in which the obligation to make such payment obligation accrues. The obligation to make the royalty payments on sales of
Covered Products shall continue, on a country by country basis, until expiration of the last Assigned Patent with a Valid Claim Covering such Covered Product in such country; and 

3.2.7 five percent (5%) of any license or milestone payments paid to Assignee by a Third Party under any exclusive or non-exclusive
license of the therapeutic rights under the Assigned Patents granted by Assignee to any Third Party; provided, however, that if the event giving rise to such license or milestone payment by a Third Party is the same as an event
specified in Sections 3.2.2, 3.2.3 or 3.2.4, Assignee’s obligation shall be to pay the greater of the milestone specified in such Section or such five percent (5%), but not both. 

3.3 Assignee shall obtain from each of its Related Parties all information with respect to sales of Covered Products made by such
Related Parties to Third Parties necessary to calculate Net Sales by such Related Party (and include such information in the calculation of Net Sales reported in the royalty reports described in Section 3.4). Any such sales by Related Parties
will be deemed sales by Assignee for purposes of computing Net Sales. 
 3.4 Each payment made hereunder shall be
accompanied by a report in writing showing the period and/or the milestone to which such payment applies and, for each royalty report, the amount billed to Third Parties for each Covered Product during the relevant calendar quarter, the deductions
from the amount billed for each Covered Product to arrive at Net Sales, the total Net Sales for the calendar quarter for each Covered Product, the conversion rate (determined in accordance with Section 3.5) for the calendar quarter used to
convert any currency other than U.S. Dollars (“Dollars”) into Dollars and the royalties due on account of such Net Sales. 

3.5 Where customers in any country are billed in a currency other than Dollars, then for purposes of computing royalty payments on
Net Sales for any calendar quarter, the aggregate of Net Sales billed in such currency for such quarter shall be converted into Dollars at the commercial rate at which Dollars could be purchased with such foreign currency (the “Dollar

  

 9 

 
Purchase Rate”) on the last business day of such quarter, based on the Dollar Purchase Rate on such date as quoted by Citibank, N.A. in New York or other such valid source as agreed by the
Parties if Citibank, NA in New York no longer exists. Net Sales in such country for such quarter as so converted shall be included in aggregate worldwide Net Sales for purposes of determining the royalty due to Assignor under Section 3.1.

 3.6 Except as otherwise provided in this Section 3.6, (a) all amounts of royalties and milestone payments payable
by Assignee pursuant to this shall be paid in Dollars without deducting therefrom any tax, duty, charge, conversion or remittance fee, commission, discount or other fee payable in respect of such royalty payment and (b) if any tax, however
denominated, is levied against Assignor in the Territory solely because of Assignee business conducted pursuant to this Agreement, then Assignee shall pay such tax timely without deduction from any royalty payment. Notwithstanding the foregoing, any
and all taxes levied by a proper taxing authority required to be withheld by Assignee on account of royalties accruing to Assignor under this Agreement may be deducted from such royalty payment; provided that (x) such amount is promptly paid
for on behalf of Assignor to the appropriate tax authorities and (y) Assignee furnishes Assignor with official tax receipts or other appropriate evidence of payment issued by the appropriate tax authorities. Assignor shall be solely responsible
for filing any returns or information with the relevant tax authorities in order to secure a reduction in withholding tax to the appropriate rate prevailing taxation treaty between the relevant jurisdiction and the United States, and Assignee shall
undertake to cooperate with all reasonable requests of Assignor, if requested, in this respect. 
 3.7 Assignee shall keep
all records relating to sales of Covered Products in any period for not less than three (3) years from the date of the royalty report for such period. 

3.7.1 From time to time until three (3) years following expiration of the last Assigned Patent with a Valid Claim Covering any
Covered Product, Assignor and its designated representatives or advisors shall have the right, at Assignor’s expense, to have an independent certified public accounting firm of nationally recognized standing selected by Assignor and reasonably
acceptable to Assignee, at the Assignor’s expense, examine such of the records of Assignee as may be reasonably necessary to verify the accuracy of the royalty reports hereunder, but Assignor shall not be allowed to audit any single calendar
year more than once absent a demonstration of a reasonable basis for such additional audit. Assignee shall make such records available for inspection during regular business hours at such place or places where such records are customarily kept, upon
reasonable notice from Assignor. 
 3.7.2 All information learned by such accounting firm in the course of any audit or
inspection hereunder shall be deemed Confidential Information of Assignee. The accounting firm shall disclose to Assignor only whether the royalty reports are correct or incorrect and the specific details concerning any discrepancies, including
sufficient information to enable Assignor to pursue the correction of any discrepancies. No other information shall be provided to Assignor. 
  

 10 

 3.7.3 If the audit reveals an error in Assignor’s favor (i.e., an underpayment)
which is greater than five percent (5%) of the amounts due from Assignee specified in Assignee’s royalty report for such quarter, Assignee shall, in addition to immediately remitting to Assignor the amount of underpayment, (i) pay for
the cost of such audit and (ii) pay interest to Assignor on such underpayment from the date such amounts were accrued until the date such amounts are paid at a rate per annum that is one percent (1%) higher than the prime rate reported in
the New York edition of The Wall Street Journal (or if The Wall Street Journal is no longer published, then such other leading daily business and financial periodical of general circulation as the Parties may reasonably agree) on the
last date of publication preceding the date payment was due (the “Late Payment Rate”). In the event the audit shows that Assignee has overpaid any royalties or milestone payments due to Assignor hereunder, Assignee shall be allowed to
deduct the amount of such overpayment (plus interest on such overpayment at the Late Payment Rate from the date of such overpayment) from the next royalty payment due to Assignor, provided, however, that the next royalty payment shall
not be reduced by such deduction to less than 75% of the royalties due as reflected on the royalty report for such quarter. Amounts not deducted in any calendar quarter as a result of the limitation in the preceding sentence may be deducted (subject
to such limitation) in subsequent quarters. 
 3.8 Assignee shall have the right, at any time during the period commencing
October 1, 2008 and ending November 1, 2008 (the date on which the third installment of $200,000 is due under Section 3.1.1), to re-assign to Assignor the Assigned Patents and all Patent-Related Information, whether initially obtained
by Assignee from Assignor or created or developed by Assignee during the period after the Effective Date and prior to the date on which notice of such assignment is delivered to Assignor (the “Assignment Notice”). The Assignment Notice
shall be accompanied by a Patent Assignment Agreement substantially in the form of this Agreement (subject to suitable modification relating to the change in the Parties’ respective roles thereunder) (the “Re-Assignment Agreement”),
except that neither Assignee nor Assignor shall have any obligation to make any payments to the other of any kind, including of the type specified in Section 3 of this Agreement. Assignee shall not incur any liability or penalty as a result of
exercising its rights under this Section 3.8. Assignor shall promptly execute and return to Assignee a copy of the Re-Assignment Agreement. Upon delivery to Assignor of the Assignment Notice and an executed version of the Re-Assignment
Agreement, Assignee shall be relieved of any further liability or responsibility with respect to the Assigned Patents and the Covered Products except as expressly provided in the Re-Assignment Agreement. 

3.9 Assignee will use commercially reasonable efforts to commercialize (and shall cause its sublicensees, if any, to use commercially
reasonable efforts to commercialize) the Assigned Patents. For each year, a short report on the activities of the Assignee on its activities towards commercialization of the Assigned Patents shall be provided to the Assignor. The first report is due
by February 1, 2010 covering the activities in the year 2009, the second report is due by February 1, 2011 covering the activities in the year 2010, etc. Commercially reasonable efforts means that Assignee will take such actions, will
exert such effort and will employ such resources as are consistent with efforts that would be employed by a pharmaceutical company with resources equivalent to Assignee’s with respect to research activities seeking to exploit specific
proprietary scientific knowledge, taking into consideration the results to date of the research and the anticipated commercial opportunity. If such efforts are hindered or delayed due to reasons beyond the control of Assignee; the Parties agree to
discuss the situation in good faith. If, however, Assignor believes that such efforts have been halted for other reasons (such as 

 

 11 

 
changed priorities by the Assignee), Assignor shall provide notice to Assignee of Assignor’s belief and the reasons for such belief and the parties shall promptly meet to discuss the
situation in good faith. If the Assignee is unable within 60 days of Assignor’s notice to satisfy the Assignor to its reasonable satisfaction that halting commercialization is justified, the Assignee agrees to submit the reasonableness of
halting commercialization to arbitration under Section 8 and, if halting commercialization is found to be unreasonable, to reassign the Assigned Patents and all Patent-Related Information, whether initially obtained by Assignee from Assignor or
created or developed by Assignee during the period after the Effective Date and prior to the date on which notice of such assignment is delivered to Assignor (the “Assignment Notice”). The Assignment Notice shall be accompanied by a Patent
Assignment Agreement substantially in the form of this Agreement (subject to suitable modification relating to the change in the Parties’ respective roles thereunder) (the “Re-Assignment Agreement”). Assignee shall promptly execute
and return to Assignor a copy of the Re-Assignment Agreement. Assignee shall be relieved of any further liability or responsibility with respect to the Assigned Patents and the Covered Products except as expressly provided in the Re-Assignment
Agreement. 
 Section 4. Representations and Warranties of the Assignor 

4.1 Assignor represents and warrants to the Assignee as of the Effective Date as follows: 

4.1.1 Assignor is a corporation duly incorporated, validly existing, and in good standing under the laws of the Kingdom of Denmark and
has the power, authority, and capacity to enter into this Agreement and to carry out its terms. 
 4.1.2 The execution and
delivery of this Agreement and the completion of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate action on the part of the Assignor, and this Agreement constitutes a valid and binding obligation
of the Assignor enforceable against the Assignor in accordance with its terms. 
 4.1.3 Assignor is the legal and beneficial
owner of the Assigned Patents and the Patent-Related Information, free and clear of all encumbrances whatsoever, and is not a party to or bound by any contract or any other obligation whatsoever that limits or impairs its ability to sell, transfer,
assign or convey, or that otherwise affects, the Assigned Patents and the Patent-Related Information. 
 4.1.4 Assignor has the
right to convey, assign and transfer all of the right, title and interest in the Assigned Patents and the Patent-Related Information in the manner provided herein. 

4.1.5 Assignor has not granted any person other than Assignee any interest in or right to use the Assigned Patents. 

 

 12 

 4.1.6 Assignor is not aware of any claim of infringement (or the inducing of or
contribution to the infringement) of any intellectual property rights of any other person arising from the practice of the Assigned Patents or the use of any inventions, technology or ideas disclosed therein, nor has Assignor received any notice
that use of the Assigned Patents infringes upon or breaches or will infringe upon or breach any intellectual property rights of any other person. 

4.1.7 Assignor, including its officers, employees and agents, makes no representations or warranties to Assignee that the Assigned
Patents are or will be held valid or enforceable, or that the manufacture, importation, use, offer for sale, sale or other distribution of any Covered Products will not infringe any patent or other rights. 

Section 5. Representations of Assignee 

5.1 Assignee represents and warrants to Assignor as follows: 

5.1.1 Assignee is a corporation duly incorporated, validly existing, and in good standing under the laws of State of Delaware, and has
the power, authority, and capacity to enter into this Agreement and to carry out its terms. 
 5.1.2 The execution and delivery
of this Agreement and the License Agreement and the completion of the transactions contemplated hereby and thereby has been duly and validly authorized by all necessary corporate action on the part of Assignee, and this Agreement constitutes (and
the License Agreement assuming due execution and delivery thereof by Assignor will constitute) a valid and binding obligation of the Assignee, enforceable against the Assignee in accordance with its terms. 

5.1.3 Assignee, including its officers, employees and agents, makes no representations or warranties to Assignor that the Assigned
Patents are or will be held valid or enforceable, or that the manufacture, importation, use, offer for sale, sale or other distribution of any Covered Products will not infringe any patent or other rights. 

Section 6. Enforcement  

6.1 Assignor agrees to promptly notify Assignee in writing of any infringement or misappropriation or claim of infringement of Third Party
rights in respect of any of the Assigned Patents of which Assignor becomes aware and will provide Assignee with any and all evidence in its possession, if any, of such infringement, misappropriation or breach. 

6.2 Assignee agrees to promptly notify Assignor in writing of any infringement or misappropriation or claim of infringement of Third
Party rights in respect of any of the Assigned Patents of which Assignee becomes aware and will provide Assignor with any and all evidence in its possession, if any, of such infringement, misappropriation or breach. 

6.3 Each Party shall, upon request, provide the other Party with all available evidence in its possession relevant to such infringement
or suspected infringement. From and after the Effective Date, Assignee shall have the sole and absolute discretion to control the assertion and defense of the Assigned Patents, using counsel of its choice, and the Assignor shall cooperate, at

  

 13 

 
the sole expense of the Assignee, with all reasonable requests of the Assignee for assistance in the assertion and defense of the Assigned Patents. Assignee shall be solely responsible for all
costs whatsoever, including attorney’s fees, arising after the Effective Date and associated with the assertion and defense of the Assigned Patents, and in cases of assertion of the Assigned Patents, shall retain all recoveries with respect
thereto. 
 6.4 Notwithstanding Sections 2 and 6.3, the Assignee agrees to prosecute, maintain and defend all Assigned Patents
until November 1, 2008. During such period and thereafter, the Parties will cooperate in good faith in connection with the prosecution, maintenance and defense of all Valid Claims claiming subject matter relevant to Assignor’s exercise of
the license granted in Section 3.1. 
 6.5 Consistent with its obligations under Section 6.4, Assignee will prosecute,
maintain and defend the Assigned Patents in the following countries: United States, Canada, Australia, Japan, Korea, China, India, Germany, France, Switzerland, United Kingdom and Denmark (the “Obligatory Patent Maintenance Territories”).
Assignee may maintain patents in other countries or regions at own discretion. 
 Section 7. Breach of Contract  

The Parties expressly agree that, in the event a Party violates, defaults or fails to perform any of its respective covenants,
obligations, agreements, representations or warranties contained herein, full legal remedy shall remain available to the non-defaulting Party for redress of such violation, default or failure, including the right to recover monetary damages or to
secure such other relief appropriate to the circumstances. 
 Section 8. Resolution of Disputes 

Subject to the rights of the Parties under Section 8.5, if the Parties do not fully settle, within thirty (30) days after notice
thereof, any dispute, claim or controversy arising out of or in connection with this Agreement, such dispute, claim or controversy shall be finally resolved by binding arbitration in accordance with the following provisions: 

8.1 All disputes arising out of or in connection with the interpretation, execution and/or resolution of the present contract shall be
settled under the Rules of Arbitration of the International Chamber of Commerce (“ICC”) and all expedited procedures prescribed by the ICC rules shall apply. A single arbitrator who is knowledgeable about and experienced in pharmaceutical
research and development shall conduct the arbitration under the then current rules of the ICC, unless otherwise provided herein. The arbitrator shall be chosen in accordance with ICC procedures from a list of qualified people maintained by the ICC.
In the event the Parties fail to agree on a single arbitrator, each Party shall select one arbitrator and the two so selected shall select a third and the arbitration shall be conducted by such panel of three arbitrators. In no event shall any such
arbitrator be a resident or domiciled in any country in which either Party is domiciled or has its principal place of business. 
  

 14 

 8.2 Any arbitration shall take place in London, England and shall be conducted in the
English language. The award of the arbitrators shall be final and binding on both Parties and judgment on the arbitration award may be entered in any court having jurisdiction thereof. The Parties bind themselves to carry out the awards of the
arbitrators. The arbitrators may grant any legal or equitable remedy or relief that the arbitrators deem just and equitable, to the same extent that remedies or relief could be granted by a state or federal court; provided, however, that no punitive
damages, or damages expressly excluded in accordance with Section 9.2 may be awarded and no court action may be maintained seeking such damages. The decision of any two of the three arbitrators appointed shall be binding upon the Parties and
final. 
 8.3 Each Party shall bear its own expenses incurred in connection with the arbitration, including, without limitation,
attorneys fees, costs of bringing in consultants and experts (including deposition costs) as well as travel, food and lodging. The costs of the ICC arbitration itself, including fees payable to the ICC, the arbitrators as well as payments for the
venue, shall, subject to the award of the arbitrators, be divided equally between the Parties. The arbitrators shall have the power to award recovery of all costs of the arbitration (including reasonable attorneys’ fees, administrative fees,
arbitrators’ fees and court costs) as they so determine. 
 8.4 Except as set forth below, the Parties shall keep
confidential the fact of the arbitration, the dispute being arbitrated, and the decision of the arbitrators. Notwithstanding the foregoing, the Parties may disclose information about the arbitration to persons who have a need to know, such as
directors, trustees, management employees, witnesses, experts, investors, attorneys, lenders, insurers, and others who may be directly affected. Additionally, if a Party has stock that is publicly traded, the Party may make such disclosures as are
required by applicable securities laws or the rules of any stock exchange on which such Party’s stock is publicly traded. Further, if a Party is expressly asked by a Third Party about the dispute or the arbitration, the Party may disclose and
acknowledge in general and limited terms that there is a dispute with the other Party which is being (or has been) arbitrated. Once the arbitration award has become final, if the arbitration award is not promptly satisfied, then these
confidentiality provisions shall not be applicable to any disclosures made or required to be made in connection with proceedings to enforce the arbitration award. 

8.5 No provision of, nor the exercise of any rights under, this Section 8 shall limit the right of either Party to request and
obtain from a court of competent jurisdiction before or during the pendency of any arbitration, provisional or ancillary remedies and relief including, but not limited to, injunctive or mandatory relief or the appointment of a receiver. Any
proceedings between the Parties pursuant to this Section 8.5 shall be conducted in the English language. The institution and maintenance of such proceedings shall not constitute a waiver of the right of any Party, even if it is the plaintiff,
to submit the dispute to arbitration if such Party would otherwise have such right. For purposes of this provision, the Party named defendant in any such proceedings hereby submits unconditionally to the exclusive jurisdiction of the Courts and
Tribunals of the city of London, England to commence such proceedings, waives any objection to the venue of any such proceedings in any such court and any objection that any such court provides an inconvenient forum and consents to the service of
process upon it in connection with any such proceedings in the same manner as provided for the giving of notice hereunder. 
  

 15 

 Section 9. Miscellaneous  

9.1 Nothing contained in this Agreement shall be construed as conferring upon either Party any right to use in advertising, publicity, or
other promotional activities any name, trade name, trademark, trade dress or other designation of the other hereto (including any contraction, abbreviation or simulation of any of the foregoing), save as expressly stated herein. Except as otherwise
required by applicable law or regulation, each Party hereto agrees not to use or refer to this Agreement or any provision hereof in any promotional activity without the express written approval of the other Party. In the event any Party proposes to
issue any press release or public announcement concerning any provisions of this Agreement or the transactions contemplated hereby, such Party shall so advise the other Parties hereto, and the Parties shall thereafter use all commercially reasonable
efforts to cause a mutually agreeable release or announcement to be issued. Except as otherwise required by law or applicable stock exchange regulations, neither Party will publicly or privately disclose or divulge any provisions of this Agreement
or the transactions contemplated hereby without the other Party’s written consent. 
 9.2 Neither Assignee nor Assignor
shall be liable, whether in contract, tort (including negligence and strict liability) or otherwise, for any special, indirect, incidental, punitive, or consequential damages arising hereunder, including, but not limited to, loss of profits or
goodwill, business interruptions or claims of customers, even if advised of the possibility of such damages. Notwithstanding anything to the contrary in this Agreement, the Parties agree that, if the Assignee fails to prosecute, maintain and defend
the Assigned Patents until November 1, 2008 or if either Party fails to cooperate in the prosecution, maintenance or defense of the Valid Claims claiming subject matter relevant to Assignor’s exercise of the license granted in
Section 3.1, the damages suffered by other Party, pursued and defended, may be considerable but very difficult to measure and document. Accordingly, the Party which is alleged to have failed its obligation agrees that the other Party shall have
the right to equitable relief (including by injunction or order of specific performance) from any court of competent jurisdiction for such failure. 

9.3 No amendment, modification or alteration of the terms or provisions of this Agreement will be binding unless the same is in writing
and duly executed by each of the Parties hereto, except that any of the terms or provisions of this Agreement may be waived in writing at any time by the Party which is entitled to the benefits of such waived terms or provisions. No waiver of any of
the provisions of this Agreement will be deemed to, or will, constitute a waiver of any other provision hereof (whether or not similar) or of any other present or future right or obligation hereunder. No delay on the part of any Party to this
Agreement in exercising any right, power or privilege hereunder will operate as a waiver thereof. 
 9.4 If any provision of
this Agreement or the application of any such provision to any person, Party or circumstance will be held invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or unenforceability will not
affect any other provision of this Agreement and this Agreement will remain in full force and effect and will be effectuated as if such illegal, invalid or unenforceable provision is not part thereof; provided, however, that if such
provision is held to be invalid or unenforceable because overbroad as written, such provision shall be deemed amended to narrow its application to the extent necessary to make the provision enforceable according to applicable law and shall be
enforced as amended. 
  

 16 

 9.5 This Agreement (including the Exhibits attached hereto) constitutes the entire agreement
between the Parties with respect to the subject matter hereof and supersedes all prior agreements and understandings, oral and written, between the Parties. 

9.6 The terms and conditions of this Agreement will inure to the benefit of, and be binding upon, the respective successors and assigns
of the Parties hereto. This Agreement and the license and other rights granted or created hereunder may not be assigned, in whole or in part by either Party without the prior written consent of the other Party, and any attempted assignment shall be
null and void; provided, however, that either Party may assign or otherwise transfer its rights and obligations under this Agreement to any Affiliate or to any successor in interest to the entire business conducted by the assigning
party to which this Agreement relates (whether by merger, share exchange, sale or issuance of stock, sale or other transfer of assets, combination or consolidation of any type, operation of law, purchase, assignment or otherwise), but only if such
assignee or successor agrees in writing to be bound by the terms hereof. 
 9.7 Nothing in this Agreement, express or implied,
is intended to confer any rights or remedies hereunder on any person other than Assignee or Assignor or any of their respective successors and permitted assigns. 

9.8 The Parties hereto acknowledge and agree that the Exhibits attached hereto are an integral part of this Agreement, and are hereby
incorporated by reference herein and made a part hereof. 
 9.9 The Recitals and the headings of the articles, sections and
paragraphs contained in this Agreement are inserted for convenience only and will not be deemed to constitute part of this Agreement or to affect the construction thereof. 

9.10 The laws of the State of New York (without regard to its conflict of laws rules) will govern the interpretation, construction,
validity, performance and enforcement of this Agreement. 
 9.11 Assignee and Assignor each acknowledge that this Agreement has
been prepared jointly by the Parties and shall not be strictly construed against either Party. 
 9.12 This Agreement may be
executed by facsimile or original signature in two or more counterparts, each of which will for all purposes be deemed to be an original but all of which together will constitute one and the same instrument. 

9.13 Each Party shall do and execute, or arrange for the doing and executing of, each necessary act, document and thing to implement this
Agreement, including without limitation executing and delivering and recording any license required by local law, with terms consistent with this Agreement to the extent permitted by such local law, in the relevant country or jurisdictions.

  

 17 

 9.14 All notices which are required or permitted hereunder shall be in writing and
sufficient if delivered personally, sent by facsimile or electronic mail (and promptly confirmed by personal delivery, registered or certified mail or overnight courier), sent by nationally-recognized overnight courier or sent by registered or
certified mail, postage prepaid, return receipt requested, addressed as follows: 
 if to Assignee, to: 

Nastech Pharmaceutical Company Inc. 

3450 Monte Villa Parkway 

Bothell, WA 98021 

Attention: Office of the Chief Executive Officer and President 

Facsimile No.: (425) 908-3650 

with a copy to: 

Pryor Cashman Sherman & Flynn LLP 

410 Park Avenue 

New York, NY 10022 

Attention: Lawrence Remmel 

Facsimile No.: (212) 326-0806 

if to Assignor, to: 

Ribotask ApS 

Sdr. Boulevard 44-3. sal 

DK-5000, Odense C 

Denmark 

Attention: Suzy Lena 

Facsimile No: + 45 65 50 43 85 

or to such other address(es) as the Party to whom notice is to be given may have furnished to the other Party in writing in accordance herewith. Any such
notice shall be deemed to have been given: (a) when delivered if personally delivered or sent by facsimile or electronic mail on a business day (or if delivered or sent on a non-business day, then on the next business day); (b) on the
business day after dispatch if sent by nationally-recognized overnight courier; or (c) on the fifth (5th) business day following the date of mailing if sent by mail. 

9.15 The Parties hereto are independent contractors and nothing contained in this Agreement shall be deemed or construed to create the
relationship of a partnership or joint venture or of any association or relationship between the Parties. Assignor and Assignee each acknowledges that it does not have the authority to make (and agrees not to make) any representation to any Third
Party, either directly or indirectly, indicating that it has the authority to act for or on behalf of the other Party nor does it have the authority to obligate (nor shall it obligate or purport to obligate) the other Party in any manner whatsoever,
beyond authority expressly granted herein. 
  

 18 

 9.16 Following the Effective Date, each Party may make a public announcement with respect to
the existence of this Agreement subject to the approval of the other Party, which approval shall not be unreasonably withheld, conditioned or delayed. The substance of any such public announcement, once made, may be republished by either Party
without the further approval of the other Party. Except with respect to such press release announcing execution and subject matter of this Agreement by the Parties, and except as otherwise required by law or the applicable regulations of any
securities exchange, neither Party shall use the name of the other Party or of any staff member or employee of the other Party in any announcement publication, or presentation which relates to the subject matter of this Agreement without the prior
written consent of the other Party. Except as expressly provided above, each Party shall keep this Agreement and all of its terms and conditions confidential. 

9.17 Each Party shall hold in confidence any Confidential Information of the other Party hereunder, and agrees not to disclose any such
Confidential Information to any Third Party without the express written consent of the other Party; provided, however, that either Party may disclose such information: (a) in confidence, to its employees, consultants, attorneys,
auditors and professional advisors with a need to know and who agree to appropriate restrictions on use or disclosure other than to further the purposes of this Agreement or (b) to a court or tribunal as necessary to enforce this Agreement.

 9.17.1 The Parties shall use the same degree of care in protecting Confidential Information as each uses for its own
information of like importance, but not less than a reasonable degree of care. Each Party will use Confidential Information only for purposes of furthering the purposes of this Agreement. With respect to any Confidential Information that is revealed
by a Party to the other Party, this confidentiality requirement will remain in force for a period of five years following the expiration or termination of this Agreement. 

9.17.2 Notwithstanding any other provision of this Agreement, a Party may disclose Confidential Information which is required to be
disclosed by law, rule or regulation (including applicable regulations of any securities exchange), or any, administrative or legal process; provided, however, that the Party proposing to make such disclosure shall give prompt prior written notice
to the other Party and agrees to consult with the other Party in good faith regarding the scope of such disclosure. Furthermore, in the case of any administrative or legal process, the Party proposing to make such disclosure shall provide reasonable
cooperation to the other Party, at the other Party’s expense, in the latter Party’s efforts to challenge the basis for such compelled disclosure or limit the scope of disclosure of such information, as the disclosing Party may deem
appropriate. 
 [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.] 

 

 19 

 IN WITNESS WHEREOF, each of the Parties hereto has caused this Agreement to be duly
executed in duplicate originals by their duly authorized representatives as of the day and year first above written. 
 ASSIGNOR: 

Ribotask ApS 
  

			
	By:	 	 /s/ Jesper Wengel

	Name:	 	Jesper Wengel, Ph.D.
	Title:	 	Chairman of the Board
		
	By:	 	 /s/ Suzy Lena

	Name:	 	Suzy Lena
	Title:	 	CEO

 ASSIGNEE: 

NASTECH PHARMACEUTICAL COMPANY, INC. 
  

			
	By:	 	 /s/ Bruce York

	Name:	 	Bruce York
	Title:	 	CFO

 Exhibits 

A     –     Assigned Patents 

B     –     Form of Assignment 

C     –     Obligations to Inventors 

 

 20 

 EXHIBIT A 

ASSIGNED PATENTS  

[Hydroxymethyl substituted RNA oligonucleotides and RNA complexes – See attached] 

 

 21 

 EXHIBIT B 

Form of Recordable Patent Assignment 

For good and valuable consideration, the receipt of which is hereby acknowledged, Ribotask ApS, a company established under the laws of Denmark,
(hereinafter “Assignor”), hereby grants and assigns to Nastech Pharmaceutical Company Inc., a company established under the laws of the State of Delaware, United States of America (hereinafter “Assignee”), all of
Assignor’s right, title and interest in and to the Assigned Patents identified in Attachment A hereto, to have and to hold the same, unto Assignee for its own use and enjoyment and for the use and enjoyment of its successors and assigns,
for the full term or terms of all such rights. 
 IN WITNESS WHEREOF, Assignor has caused this Patent Assignment to be duly signed on its
behalf. 
 Ribotask ApS 
  

			
	By:	 	  

	Name:	 	Jesper Wengel, Ph.D.
	Title:	 	Chairman of the Board
		
	By:	 	  

	Name:	 	Suzy Lena
	Title:	 	CEO

 Date:
                     
  

			
	State of	  	)
		  	) S.S.
	County of	  	)

 Before me this     
day of             , 20     , personally appeared
                            , to me known to be the person(s) who are described in and who
signed the foregoing Assignment and acknowledged to me that they signed the same of their own free will for the purpose therein expressed. 
  

	
	  

Notary Public

 

 22 

 ATTACHMENT A [TO EXHIBIT B] 

ASSIGNED PATENTS  
  

					
	 Patent Number
	  	 Issue Date
	  	 Expiration Date

		  		  	
		  		  	
		  		  	

  

 23 

 EXHIBIT C 

OBLIGATIONS TO INVENTORS 
  

 24

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