Document:

QuickLinks
 -- Click here to rapidly navigate through this document
Exhibit 10.7  

LICENSE AGREEMENT  

        THIS LICENSE AGREEMENT ("Agreement") is effective as of the 4th day of May, 2004 (the
"Effective Date") by and between Xtent, Inc., a Delaware corporation ("Xtent"), Sun
Biomedical, Ltd., a Bermuda corporation ("Sun"), and Occam International, B.V., a Netherlands corporation
("Occam"), a wholly owned subsidiary of Sun. Occam, Sun, and Xtent will be referred to collectively as the
"Parties". 

RECITALS  

        A.    Occam
and its Affiliates are engaged in conducting research and clinical trials relating to drug-eluting stents using various proprietary drug compounds. In
the course of such research and clinical trials, Occam has acquired and/or developed certain proprietary technologies and techniques, including Occam's Drug/Polymer Composite Formulation, Biolimus A9,
Occam's Polymer Coating, and Occam's Lubricious Coating (each as defined below). 

        B.    Xtent
is engaged in conducting research and clinical trials related to Xtent Stent Systems (as defined below) consisting of a series of short Stents on a delivery
catheter, where the angioplasty operator has the ability to selectively deploy a number of short Stents as a portion of the total number of Stents in a series to be simultaneously delivered by the
delivery catheter, and which Stent Systems are used in connection with coronary and peripheral vascular treatments (the "Xtent Stent System"). 

        C.    Xtent
desires to license from Occam, and Occam desires to license to Xtent, the right to use Occam's Drug/Polymer Composite Formulation on Xtent's Stents, in certain
circumstances, the right to use Occam's Polymer Coating or Biolimus A9, and an optional right to use Occam's Lubricious Coating on catheters within Xtent Stent Systems, in each case, subject to the
terms and conditions of this Agreement. 

        D     Xtent
desires to utilize the services of Occam or Occam's designee for the purpose of coating Xtent's Stents with Biolimus A9 or Occam's Drug/Polymer Composite
Formulation, and may desire to do so for the purpose of coating catheters within Xtent Stent Systems with Occam's Lubricious Coating, in each case subject to the terms and conditions of this
Agreement. 

        NOW,
THEREFORE, in consideration of the mutual agreements contained in this Agreement, the Parties agree as follows: 

ARTICLE I  

DEFINITIONS  

        For purposes of this Agreement, the following terms will have the meanings set forth below (such definitions to be equally applicable to both the singular and
plural forms of the terms defined). Except as otherwise indicated, all agreements or instruments defined or identified below will mean such agreements or instruments as from time to time assigned,
modified, supplemented or amended in accordance with their respective terms. 

        1.1   "Affiliate" of a Person means another Person controlled by, controlling or under common control with such Person. For
purposes of this definition, "control" means direct or indirect beneficial ownership of at least fifty percent (50%) of the voting interest or equity of such Person. 

        1.2   "Biolimus A9" means (a) the rapamycin derivative synthesized by or proprietary to Occam or its Affiliates, which
was used by Biosensors Singapore in its STEALTH trial in Europe and either (i) further described in the applicable New Drug Application or technical dossier for CE Mark submission, or
(ii) disclosed in or covered by the claims of the Licensed Patents; or (b) any prodrugs and metabolites, and all esters, salts, acids, hydrates, solvates, polymorphs, and isomers of any
of the above; or (c) if Biolimus A9 is determined not to be approvable or if development or testing of Biolimus A9 is abandoned by Occam during the first three (3) years after the
Effective Date, then any 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 

analog
of Biolimus A9 developed by Occam or made available by Occam as a substitute for or derivative of Biolimus A9, that is either (i) further described in the applicable New Drug
Application or technical dossier for CE Mark submission, or (ii) disclosed in or covered by the claims of the Licensed Patents; and any prodrugs and metabolites, and all esters, salts, acids,
hydrates, solvates, polymorphs, and isomers of any of the above. 

        1.3   "CE Mark" means the declaration of conformity according to Medical Device Directive 93/42/EEC, after receipt of all
approvals necessary or required for the commercialization in the European Union of a medical device product. 

        1.4   "Confidential Information" has the meaning set forth in Section 10.1. 

        1.5   "Coated Stents" means Xtent's Stents marketed, developed or sold by Xtent and coated with Occam's Polymer Coating,
Occam's Drug/Polymer Composite Formulation, or Biolimus A9. 

        1.6   "Covered Products" means either or both (i) Coated Stents and (ii) Xtent Stent Systems incorporating or
utilizing Occam's Lubricious Coating. 

        1.7   "Enforcement Limitations" has the meaning set forth in Section 6.2. 

        1.8   "Excluded Technology" means (i) any proprietary compound of Occam or its Affiliates other than Occam's Polymer
Coating, Occam's Drug/Polymer Composite Formulation, or Biolimus A9; (ii) any other proprietary coating of Occam for Stents, other than Occam's Lubricious Coating or Occam's Polymer Coating;
and (iii) know-how to the extent related to any proprietary Stent of Occam or its Affiliates and not related to Occam's Drug/Polymer Composite Formulation, Occam's Polymer Coating,
Biolimus A9, or Occam's Lubricious Coating. 

        1.9   "FDA" means the U.S. Food and Drug Administration. 

        1.10 "GAAP" means generally accepted accounting principles, consistently applied. 

        1.11 "Inventions" shall refer to any new or useful art, discovery, contribution, finding or improvement, whether or not
patentable, and all related know-how. Inventions include, but are not limited to, all trade secrets, designs, discoveries, formulae, processes, manufacturing techniques, improvements and
ideas. 

        1.12 "Licensed Assets" means Licensed Patents and Licensed Know-How. 

        1.13 "Licensed Know-How" means any information, concepts, data, know-how, manufacturing methods,
processes, or improvements thereto owned or controlled by Occam or any Affiliate of Occam as of the Effective Date or during the term of this Agreement which is necessary or useful for making, using
or selling Occam's Drug/Polymer Composite Formulation, Occam's Polymer Coating, Biolimus A9, or Occam's Lubricious Coating. Licensed Know-How specifically excludes know-how to
the extent comprised of or describing any Excluded Technology. 

        1.14 "Licensed Patents" means (i) those certain patents, patent applications and invention disclosures owned or
controlled by Occam or any of its Affiliates as of the Effective Date or during the term of this Agreement, any claims of which are directed to or cover Biolimus A9, Occam's Polymer Coating, or
Occam's Drug/Polymer Composite Formulation, or the use thereof, all of which filed as of the Effective Date are set forth on Exhibit 1.14, (ii) those certain patents, patent applications
and invention disclosures owned or controlled by Occam or any of its Affiliates during the term of this Agreement, any claims of which are directed to or cover Occam's Lubricious Coating, or the use
thereof; (iii) all patents that are continuations-in-part, substitutions, confirmations, divisionals, reissues, registrations, re-examinations,
revalidations, extensions, foreign counterparts or are otherwise based on or claim priority to the patents, patent applications and invention disclosures referred to in subsection (i) or
subsection (ii) hereinabove; and (iv) all patents and patent.applications covering, disclosing or directed to the Licensed Know-How, but in the case of each of (i),
(ii) and (iii) above, only to the 

2

 

extent
that claims or portions of claims cover or are directed to Occam's Drug/Polymer Composite Formulation, Biolimus A9, Occam's Polymer Coating, or Occam's Lubricious Coating or the use of any of
the foregoing, and specifically excluding any embodiments of a patented claim that are directed to or cover Excluded Technology and are not directed to or do not cover (i), (ii) or
(iii) above. 

        1.15 "Losses" means all losses, damages, demands, claims, assessments, liabilities, payments and obligations, and all
expenses related thereto. Losses will include any reasonable legal fees and costs incurred by an Indemnified Person in defense of or in connection with any alleged or asserted liability, payment or
obligation for which indemnity is provided under Article IX, whether or not such Indemnified Person is made or becomes a party to any claim or legal action. 

        1.16 "Material Adverse Effect" means any change, effect, fact, event, occurrence, state of facts or development that,
individually or together with any other changes, effects, facts, events, occurrences, states of fact or developments which materially and adversely affects the ability of the applicable Party to
perform its obligations under this Agreement. 

        1.17 "MHLW" means the Ministry of Health, Labor and Welfare in Japan. 

        1.18 "Net Sales" means the gross sales of Royalty Bearing Products by Xtent, Xtent's Affiliates and Sublicensees to third
parties in a commercial sale, specifically excluding transfers for purposes of clinical trials or evaluation and not for sale, in each case less the amount actually allowed to such third parties for
(a) allowances on account of the rejection or return of products previously sold, (b) customary trade discounts and rebates to customers to the extent actually allowed and taken,
(c) actual cost of transportation, insurance, shipping and handling charges, (d) sales, excise, turnover and similar taxes and any duties and other governmental charges imposed upon the
importation, use or sale of Royalty Bearing Products, and (e) reasonable provision for uncollectible accounts in an amount not to exceed one percent (1%) of the gross sales of each such
calendar year, consistently applied and in accordance with GAAP. If a Royalty Bearing Product is sold as part of a larger bundle or kit that incorporates or includes other products in addition to the
Royalty Bearing Product, then Net Sales will be computed using an average net selling price of the Royalty Bearing Product sold separately or, if such average net selling price is unavailable, it will
be computed using only that part of such sale as the Parties reasonably agree is reasonably allocated to the value of the Royalty Bearing Product as compared to the value of the larger bundle or kit
sold without the Royalty Bearing Product. 

        1.19 "Occam's Drug/Polymer Composite Formulation" means (i) Biolimus A9 combined with Occam's Polymer Coating in a
composite formulation, which composite formulation provides local delivery of Biolimus A9, and is described in Exhibit 1.19, and (ii) any updates or new formulations developed under
Section 3.1. 

        1.20 "Occam's Indemnified Persons" means Occam, its Affiliates and their respective directors, officers, shareholders,
employees and representatives. 

        1.21 "Occam Items" means the following, to the extent provided under this Agreement: Biolimus A9, Occam's Polymer Coating,
Occam's Drug/Polymer Composite Formulation, Occam's Lubricious Coating, and the Coating Services. 

        1.22 "Occam's Lubricious Coating" means a hydrophilic coating proprietary to Occam and described in Exhibit 1.22,
which can be applied to the shaft of a catheter to lubricate the shaft. 

        1.23 "Occam's Polymer Coating" means a biodegradable polymer coating proprietary to Occam that can be used as part of a
composite to provide local delivery of a drug on a Stent.' 

        1.24 "Pacific Rim Countries" means Japan, China, Korea, Taiwan, Hong Kong, India, Pakistan, Thailand, Malaysia, Indonesia,
Singapore, the Philippines, Australia, New Zealand, Bangladesh, Sri Lanka, Vietnam, Cambodia, and Laos. 

3

 

        1.25 "Person" means any individual, corporation, partnership, limited liability company, joint venture, estate, trust,
association, organization, labor union or other entity or governmental body, agency or authority. 

        1.26 "Royalty Bearing Product" means a Stent or Stent System sold by Xtent, an Affiliate of Xtent or a Sublicensee of Xtent,
and 

        (a)   incorporating
Occam's Drug/Polymer Composite Formulation, Biolimus A9 and/or Occam's Polymer Coating ("Full Royalty-Bearing
Product"); or 

        (b)   incorporating
Occam's Polymer Coating ("Polymer-Only Royalty Bearing Product") where Biolimus A9 is
determined not to be approvable [*] from the Effective Date; or 

        (c)   incorporating
Biolimus A9 ("Drug-Only Royalty Bearing Product") where Occam's Polymer Coating is determined
not to be approvable [*] from the Effective Date; or 

        (d)   incorporating
or utilizing pre-clinical or clinical data related to Occam's Drug/Polymer Composite Formulation, Occam's Polymer Coating and/or Biolimus A9
and/or in connection with obtaining regulatory approval of such products, which data has been provided by Occam to Xtent. 

        1.27 "Stent" means a device or graft that is implanted into a vessel to serve as scaffolding. 

        1.28 "Stent System" means a Stent mounted on a catheter. Stent System shall not include any other devices that may be
supplied with the Stent other than the delivery catheter. 

        1.29 "Sublicensee" means a permitted sublicensee or assignee of the applicable Party. 

        1.30 "Term Sheet" means the non-binding term sheet [*] executed by Xtent and Occam, 

        1.31 "Xtent's Indemnified Persons" means Xtent and its directors, officers, shareholders, employees and representatives. 

        1.32 "Xtent's Licensed Field of Use" means any applications, procedures, processes or other uses related to
drug-eluting, commonly delivered Stents that are delivered as a series of short stents on a delivery catheter wherein the operator has the ability to select the number of short stents as a
portion of the total number of stents in the series to be deployed, solely for use in coronary and peripheral vascular applications. [*] 

ARTICLE II  

GRANT OF LICENSE  

        2.1    Xtent's Licenses.    Subject to the terms of this Agreement, Occam hereby grants to Xtent, and shall cause its
Affiliates to grant to Xtent (if necessary to effectuate such grant) under the Licensed Assets: 

        (a)   A
non-exclusive, royalty-bearing, worldwide license to import, export, use, sell, and offer for sale Xtent's Stents utilizing, incorporating or coated with
Occam's Drug/Polymer Composite Formulation, Biolimus A9 and/or Occam's Polymer Coating in Xtent's Licensed Field of Use; and 

        (b)   At
Xtent's option, a non-exclusive, worldwide license to import, export, use, sell, and offer for sale Xtent Stent Systems incorporating or utilizing Occam's
Lubricious Coating. 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

4

 

        (c)   Xtent
shall not sublicense any of its rights acquired hereunder without the prior written consent of Occam, which consent may be withheld in Occam's sole discretion. 

        2.2    Grant of Distribution Rights to Occam.    Xtent hereby grants to Occam and its Affiliates the exclusive rights
to distribute the Coated Stents in Pacific Rim Countries (including Japan), for a period of five (5) years commencing upon the date in each such country on which approval is received from the
appropriate regulatory agency. The foregoing grant is subject to the following: 

        (a)   Occam
shall use commercially reasonable efforts to obtain, at its own expense, all such appropriate approvals as soon as commercially practicable in each of the Pacific
Rim Countries; provided, however, that if Occam fails to apply for such approval in any particular country [*] then the right to distribute in that country shall become
non-exclusive for that country alone and Occam shall continue to possess the exclusive rights to distribute in those countries in which approvals have been sought; 

        (b)   Commencing
with the second year after approval is received from the MHLW and continuing each year thereafter, Occam shall meet mutually agreed-upon minimum
sales requirements for each of such years. For purposes of clarity, there shall be no minimum sales requirement for the first year after such approval is received. [*] Occam
shall use commercially reasonable efforts to maximize sales of Xtent's Stents for use in Pacific Rim Countries. Occam's use of commercially reasonable efforts shall be evaluated on a
country-by-country basis within sixty (60) days of the end of each calendar year commencing after the second year. If Xtent believes Occam has failed to use commercially
reasonable efforts in any particular Pacific Rim Country, it shall notify Occam in writing, and Occam shall have thirty (30) days to challenge Xtent. If Occam does so challenge, then the
parties shall submit the matter to binding arbitration by a disinterested third party to be agreed upon by the parties. If Occam fails to challenge Xtent with thirty (30) days, it shall have
ninety (90) days in which to demonstrate that it has commenced using commercially reasonable efforts in such country, and failing such demonstration, Xtent shall have the right terminate the
exclusive distribution rights in that particular country at the end of such ninety (90) day period. Thereafter, Occam's right to distribute in such country shall be non-exclusive,
with Occam retaining exclusive distribution rights in all other Pacific Rim Countries in which it has used commercially reasonable efforts. 

        (c)   At
the time such regulatory approvals are first received, the Parties shall mutually agree upon a price to be paid by Occam for the transfer of the Coated Stents, which
transfer price will be determined in accordance with the market price and prevailing sales commissions for similar competitive products in the applicable Pacific Rim Countries; at the same time, the
Parties shall mutually agree on additional terms and conditions regarding such distribution. [*] 

        2.3    Diligence and Limited Exclusivity.    

        (a)   Xtent
hereby agrees to use commercially reasonable efforts to commercialize the Coated Stents, to conduct such tests and trials and obtain such approvals, at its own
cost, as may be necessary for the sale of the Coated Stents in the United States and other markets at Xtent's option, and to maximize royalties therefrom. 

        (b)   Subject
to Section 5.2, Section 11.2, and Section 12.6, during the term of this Agreement, Xtent shall not make, use, sell or offer to sell any drug
eluting Stent using rapamycin, or any rapamycin derivative other than Biolimus A9. 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

5

  

ARTICLE III  

COATING SERVICES  

        3.1    Cooperation Regarding Development of Process for Coating Services.    Beginning on the Effective Date, the
Parties shall work cooperatively and use commercially reasonable efforts to develop and improve a process for coating Xtent's Stents, which process meets Xtent's quality and performance requirements.
Those requirements include reproducibility of the process and results, scalability (the ability to coat a number of Xtent's Stents consistent with commercial manufacturing and sales volumes), and
cost-effectiveness (as described in Section 3.8(a)). Process development will occur at Occam's facility, to which Xtent personnel will have reasonable access, subject to Occam's
supervision, and with advance notice to Occam as necessary to carry out process development as set forth herein. 

        3.2    Purchase of Coating Services.    Subject to the terms of Section 3.8 below. Xtent shall retain the
services of Occam or its designee on a contract basis to apply Occam's Drug/Polymer Composite Formulation or, if applicable, Biolimus A9 or Occam's Polymer Coating, to Xtent Stents (the
"Coating Services"), and Xtent shall only use Occam or its designee to perform the Coating Services for Coated Stents. In the event of any shortage of
capacity or material relating to Occam's Drug/Polymer Composite Formulation (or, if applicable, Biolimus A9 or Occam's Polymer Coating), Occam shall allocate such resources to fill Xtent's orders in
the same proportion as Xtent's orders relate to orders from all customers of Occam. Such allocation does not limit or reduce each Party's obligations and rights under Section 3.8, which apply
regardless of such allocation. 

        3.3    Lubricious Coating.    Beginning on the Effective Date and continuing for a period of six (6) months
thereafter, Xtent will evaluate using Occam's Lubricious Coating for the catheter within the Xtent Stent System. If Xtent elects in its sole discretion to use such Lubricious Coating, then the Parties
will negotiate industry standard and customary purchase and supply terms for Occam's Lubricious Coating, subject to Section 3.7. Pursuant to such purchase and supply terms, Occam shall supply
sufficient quantities of Occam's Lubricious Coating for Xtent to apply or have applied to the catheters within the Xtent Stent System; application of Occam's Lubricious Coating must be according to
the manufacturing documentation and work instructions supplied by Occam. 

        3.4    Purchase Orders, Forecasts and Supply Terms for Coating Services and/or Occam's Drug/Polymer Composite
Formulation.    Commencing within sixty (60) days after the Effective Date, at the beginning of each calendar quarter, Xtent shall provide a forecast of the
number of Xtent's Stents to be coated during the following twelve (12) month period (the "Forecasts"), by month. The first three
(3) months of each Forecast shall be binding on Xtent and the balance shall be for planning purposes. In addition, Xtent shall provide Occam with purchase orders for the Coating Services (the
"Purchase Orders") corresponding with at least the binding portion of each Forecast. The Purchase Orders shall specify the number of Stents which Xtent
desires to be coated by Occam and Xtent's desired date of completion, which in any case shall not be less than thirty (30) days after the date on which the Purchase Order is delivered to Occam.
The Purchase Orders shall also include delivery dates, lead times, shipping or delivery instructions and other standard and customary terms. Each such Purchase Order shall be subject to acceptance by
Occam, except that Occam shall accept all Purchase Orders corresponding to the number of Stents in the binding portion of the Forecast for such months. To the extent any such Purchase Orders for any
month exceed 100% of the Forecast issued ninety (90) days prior to such month, Occam shall use its commercially reasonable efforts to coat such excess number of Stents. Each Purchase Order and
any acknowledgment thereof shall be governed by the terms of this Agreement and the other provisions agreed to in writing in advance, rather than any inconsistent terms which may be set forth in the
Purchase Order or acknowledgment, except for those terms specifying quantity, delivery dates, shipping or delivery instructions and other general information not inconsistent with the established
terms. Unless otherwise agreed, title to Xtent's Stents and the Xtent Stent Systems shall remain with Xtent. 

6

 

        3.5    Compliance with Laws and Regulations for Coating Services.    The Coating Services shall be performed by Occam
or its permitted designee in accordance with all applicable laws and regulations including, where applicable, the FDA rules and regulations and current Good Manufacturing Practices as promulgated by
the FDA in effect at the time the Coating Services are performed. Occam or its permitted designee shall maintain such quality control systems and procedures as shall be appropriate to allow compliance
with the requirements of International Standards Organization 9000 Series standards as applicable to Occam or its permitted designee. Occam shall keep complete and accurate records pertaining to the
Coating Services for at least three (3) years or for such longer period if and as required by applicable law or regulation. Occam shall make available such records to Xtent for its regulatory
filings, along with other information required under Section 5.7. 

        3.6    Other Services.    At the request of Xtent and subject to the further approval of Occam or its designee, Occam
may make available to Xtent (i) additional laboratory analysis services, including, characterization of the drug release characteristics of the Coated Stents, drug elution, biocompatibility,
design verification and process validation; and (ii) required animal studies and other scientific studies which may be required by regulatory authorities to obtain regulatory approvals
(collectively "Laboratory Services"). If Xtent requests Laboratory Services from Occam, Occam or its designee shall provide a price quotation and
proposed delivery schedule for the performance of such services, taking into account Occam's own testing schedule for in-house products and other commitments to third parties. If Occam is
unable to provide such Laboratory Services, then it shall provide reasonable assistance to Xtent to find an appropriate arrangement with a third party or directly with Xtent, and shall provide to
Xtent information under Occam's control that is related to analysis of processes and studies for Occam's Drug/Polymer Composite Formulation (or, if applicable, Biolimus A9 or Occam's
Polymer Coating), subject to standard confidentiality terms. Provision of data from Occam to Xtent is further addressed in Article V. 

        3.7    Payment for Coating Services.    

        (a)   In
consideration of the Coating Services performed by Occam or its designee hereunder, [*] Direct costs shall include direct material and labor
costs ("Direct Costs") calculated on a quarterly basis. Within sixty (60) days after the end of each calendar quarter, Occam shall determine
whether, as a result of changes in Occam's Direct Costs, there shall bean adjustment to the amount of the Coating Payment, and shall provide written notice to Xtent thereof including the effective
date of such change, describing the reasons for such change in its Direct Costs, which adjustment shall be effective for all future services after the effective date of such written notice. Occam will
document such Direct Costs on a quarterly basis to Xtent's reasonable satisfaction. 

        (b)   On
an ongoing basis during the term of this Agreement, Occam and Xtent shall work diligently and use commercially reasonable efforts to attempt to reduce the cost for
providing Coating Services while maintaining quality and performance of the process and materials. 

        (c)   [*]

        (d)   Occam
shall tender invoices to Xtent for all services performed and materials supplied under terms of this Article III, which invoices shall be due and payable no
later than thirty (30) days after the later of the date of invoice or date of shipment of the coated Xtent Stents or Occam's Lubricious Coating covered by such invoice, whichever is earlier. 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

7

 

        3.8    Xtent's Right to Manufacture in Certain Events.    

        (a)    Contingent Manufacturing Right.    In the event Occam fails to fill [*] of Xtent's
orders for Coating Services that it is required to fulfill pursuant to Section 3.2 and 3.4 above over a period of [*] Xtent may provide written notice to Occam of such
failure. Provided that Xtent is not in default hereunder, the parties shall meet promptly after Xtent provides such notice to negotiate in good faith and agree on (i) a plan for Occam to begin
fully fulfilling Xtent's orders in a timely manner, or (ii) a plan to grant to Xtent the right to manufacture Occam's Drag/Polymer Composite Formulation and to apply it to Xtent's Stents. If
Occam is unable to cure such default within one hundred twenty (120) days after receipt of such notice (a "Supply Failure"), and Xtent is not in
material default under this Agreement, then Xtent shall have the right to purchase from Occam the formulation it had been using in connection with the Xtent Stent System, whether Occam's Drug/Polymer
Composite Formulation, Biolimus A9, Occam's Polymer Coating or some combination thereof, and shall further have the right to perform the Coating Services on Xtent's Stents. In that case, the purchase
price for Occam's Drug/Polymer Composite Formulation (or, if applicable, Biolimus A9 or Occam's Polymer Coating) shall not exceed the price that Xtent had been paying under Section 3.7 above,
less Occam's direct costs of labor which would have been expended had Occam performed the Coating Services on such Stents. When determining whether there has been a Supply Failure, Occam shall not be
required to increase coating unit volume for the Xtent's Stents, in any given month, in excess of twenty percent (20%) above the average volume over the immediately preceding two-month
period. 

        (b)    Licensed Assets.    In the event of a Supply Failure, Occam shall grant and does hereby grant a
non-exclusive license to Xtent during the period in which Occam is unable or unwilling to perform the coating services, but not to exceed the balance of the term of this Agreement, under
the Licensed Assets, to enable Xtent to perform or have performed the Coating Services on the Xtent's Stents on its own and in its own facility or the facility of a third party, subject to
Section 12.6. If Occam possesses any tooling or fixtures made specifically to provide Coating Services for the Xtent's Stents and Xtent Stent Systems, Occam shall transfer such items to Xtent
as part of the Licensed Assets being licensed hereunder for a price which shall equal Occam's replacement costs for such tooling or fixtures, subject to Section 12.6. 

ARTICLE IV  

PAYMENTS  

        4.1    Payments.    In consideration of the licenses granted by Occam under this Agreement, on the Effective Date
Xtent will deliver to Occam the following: 

        (a)   A
cash payment of [*] as an initial licensing fee; and 

        (b)   [*]
of common stock of Xtent, pursuant to Xtent's standard stock purchase agreement, all of which shall be fully paid and
non-assessable. 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

8

 

        4.2    Royalties.    

        (a)    Royalty for Full Royalty Bearing Products.    For the Full Royalty Bearing Product (which is not a
Drug-Only or Polymer-Only Royalty Bearing Product as defined in Sections 1.26(b) and (c) above), Xtent will pay to Occam a royalty equal to [*]
of such Full Royalty Bearing Products by Xtent, its Affiliates and/or its permitted Sublicensees, including sales to Occam pursuant to Section 2.2 above. [*] For
clarity, Occam's sole remuneration with respect to Royalty Bearing Products not transferred in a commercial sale including those used in clinical trials or for evaluation.purposes shall be the amounts
paid pursuant to Article III. 

        (b)    Royalty For Drug-Only Royalty Bearing Products and Polymer-Only Royalty Bearing
Products.    For Drug-Only Royalty-Bearing Products or Polymer-Only Royalty Bearing Products (as defined in Sections 1,26(b) and
(c) above), Xtent will pay to Occam a royalty in an amount equal to [*] provided, however, that if both Biolimus A9 and Occam's Polymer Coating are approvable and Xtent
elects to use only one on the Xtent Stents, the full royalty to be paid under Subsection 4.2(a) shall be payable by Xtent. 

        (c)    Royalty Reductions.    Notwithstanding the foregoing subsections (a) and (b), Xtent may reduce the
royalties payable under subsection (a) or (b) as follows: In the event that it is determined by a court of competent jurisdiction or if Xtent determines and Occam reasonably agrees that
Xtent must pay royalties for a license to a third party for use of Biolimus A9, Occam's Polymer Coating, or Occam's Drug/Polymer Composite Formulation in order to commercialize Coated Stents, Xtent
may deduct from the royalties otherwise due to Occam the sums required to be paid to such third party(s), [*] of the royalties that otherwise would be due from Xtent, its
Affiliates and/or its permitted Sublicensees in the area covered by such licenses. 

        (d)    Annual Minimum Royalty.    Commencing with the calendar year in which Xtent Stents first receive a
CE-Mark, FDA or MHLW approval and for each calendar year thereafter so long as this Agreement remains in force and effect, Xtent shall [*] provided that in the
first year after such approval, the Minimum Annual Royalty will be prorated for the number of months during which such approval is effective. In the event that in any calendar year the royalties paid
for such year are [*] then Occam shall provide written notice to Xtent of the shortfall. Xtent may pay Occam the amount of the shortfall within forty (40) days after
such notice; if Xtent does not pay the amount of the shortfall, then Occam may terminate this Agreement and the licenses granted hereunder upon twenty (20) days' additional written notice to
Xtent. 

        (e)    Royalty Obligation.    The obligation to pay royalties hereunder will arise upon the sale by Xtent, its
Affiliates or its Sublicensees, if any, to third parties, including, without limitation, sales to Occam in its capacity as a distributor of Xtent. Sublicense Royalties due will be deemed to accrue
when Royalty Bearing Products are sold to such un-Affiliated third party, regardless of when payment has been received therefor. The obligation to pay royalties to Occam will be imposed
only once with respect to the same unit of Royalty Bearing Product. 

        (f)    Payment of Royalties.    All royalty amounts payable to Occam pursuant to this Section will be paid quarterly
within thirty (30) days following the completion of the applicable calendar quarter, will be made in United States Dollars and will be calculated in the currency of the sale and then converted
into United States Dollars at the conversion rate existing in the United States (referencing the "U.S. dollar noon buying rates" or its equivalent) published in the Wall Street Journal on the last
working day of each period during which royalties are calculated, net of applicable exchange related charges. Each royalty payment will be accompanied by a statement from Xtent showing total Net
Sales, the applicable Royalty Rate and the total royalty payment owing. 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

9

 

        (g)    Audit.    No more than twice in any twelve (12) month period, Occam shall have the right to audit the
records of Xtent pertaining to the sale of Royalty Bearing Products.- Xtent will provide Occam and its representatives with access to the records during reasonable business hours, to check, at Occam's
expense, the royalties due under this Agreement. Occam will give Xtent written notice of its election to audit the records related to the royalties due not less than ten (10) business days
prior to the proposed
date of review of Xtent's records by Occam's representatives. Xtent will maintain sufficient records to permit the audit for five (5) years after the completion of each respective reporting
period. Xtent will prepare its records and reports according to GAAP. Upon completion of any audit, the auditors will report to Occam the amount of the discrepancy in payment, if any, and Occam will
promptly provide a copy of the results to Xtent. If an audit reveals an underpayment or overpayment by Xtent, Xtent will pay, or Occam will refund or credit Xtent, as applicable, the amount due. Xtent
may, within sixty (60) days after receipt of the first audit, in good faith challenge the results of the audit by providing written records consistent with its challenge, or by having a
separate audit conducted by an independent third party, at Xtent's own cost. If an audit reveals an underpayment of more than five percent (5%), Xtent will pay all of Occam's cost associated with the
audit and interest on the underpayment computed from the date of such underpayment at an annual rate equal to the U.S. prime rate as published in The Wall Street Journal as of the date of such
underpayment plus two percent (2%), or the maximum rate allowed by applicable law, if less. 

        4.3    Payment Procedures; Taxes and Witholdings.    Each amount required to be paid under this Agreement to Occam
will be paid via wire transfer to an account designated in writing by Occam. Xtent shall pay, and shall indemnify and hold Occam harmless from, all taxes, duties and levies directly imposed by all
foreign, federal, state, local or other taxing authorities (including, without limitation, export, sales, use, excise, and value-added taxes) based on transactions or payments under this Agreement,
other than taxes imposed on Occam's net income. All amounts payable hereunder by Xtent shall be paid without deduction or withholding for or on account of Occam; provided, however, that if Xtent is
required by law to deduct or withhold any taxes, levies, or charges in respect of any amounts payable to Occam hereunder, Xtent shall pay the relevant taxation authority the minimum amounts necessary
to comply with applicable law in a timely manner prior to the date on which interest or penalties will attach thereto and shall pay to Occam such additional amounts as may be necessary so that the net
payments made to Occam after any such deduction or withholding will be equal to the amount that Occam would have received had no such deduction or withholding been required. As a condition of Xtent
paying the foregoing amounts without deduction for taxes, however, Occam shall provide to Xtent all necessary forms, statements, certifications or other documents as are required to qualify for a
reduction in or exemption from withholding, including but not limited to filing a form W8BEN prior to the date the first royalty payment is due. Occam and Xtent shall reasonably cooperate in obtaining
such reduction or exemption from withholding. 

ARTICLE V  

TESTING and CLINICAL TRIALS  

        5.1    Testing.    The Parties acknowledge that there will be a substantial amount of testing to be performed on the
Coated Stents and, if applicable, the catheter within the Xtent Stent System coated with Occam's Lubricious Coating, including, without limitation, in-vitro feasibility testing for the
combination of the Xtent Stent or Xtent Stent System, the coatings and the drug, such as drug elution, biocompatibility, design verification and process validation; and required animal studies, human
clinical studies, including a CE Mark clinical study, U.S. FDA pilot study and U.S. IDE clinical study. In addition, there will be various submissions to regulatory agencies both within and outside of
the United States to receive approval for the marketing of the Coated Stents and, if applicable, the catheter within the Xtent Stent System coated with Occam's Lubricious Coating. Xtent shall be
responsible, at its own 

10

 

expense,
for conducting all necessary testing, performing proper clinical studies and trials and preparing and filing all required submissions to the appropriate regulatory agencies in connection with
the Coated Stents, and the catheter within the Xtent Stent System coated with Occam's Lubricious Coating. Xtent shall be responsible for performing such tests and the processing, manufacturing,
packaging and provision of Xtent's Stents and Xtent Stent Systems in accordance with all applicable laws and regulatory standards (including current good manufacturing practices or the equivalent). 

        5.2    Occam Responsibility.    

        (a)   Occam
shall be responsible for the processing, manufacturing, packaging and provision of the Occam Items in accordance with all applicable laws and regulatory standards
(including current good manufacturing practices or the equivalent). At Occam's own expense, it shall perform stability testing on Biolimus A9, Occam's Polymer Coating, and Occam's Drug/Polymer
Composite Formulation as used within the Occam Items. In addition, Occam shall undertake any other necessary testing which it reasonably believes are required to develop a drug master file or
equivalent technical dossier sufficient to support an Investigational New Drug Application or equivalent regulatory filing in the United States, Japan and Europe. Occam shall use commercially
reasonable efforts to assist Xtent, at Xtent's expense, with any additional testing required for regulatory submissions which are specific to the Xtent Stent design. Occam shall keep Xtent informed of
the progress of any regulatory actions related to the Occam Items and shall provide updates at least once per calendar quarter, and more often if necessary. 

        If
any such testing required to be done by Occam is done by a third party on Occam's behalf or under license from Occam or one of its Affiliates, then with respect to any testing or
clinical data developed or gathered in such testing and relevant to obtaining, approvals of Xtent's Stent or the Xtent Stent System, Occam shall obtain access to the data which may be necessary for
Xtent pursuant to Section 5.7. To the extent such information is subject to confidentiality obligations to such a third party, Occam shall provide the data for use only by the applicable
regulatory bodies without disclosure of such third party confidential data. If Occam is unable to supply such data or provide a cross-reference to the requisite third-party data, Occam shall perform
testing and provide equivalent data for Xtent's regulatory filings. 

        (b)   If
Biolimus A9 or Occam's Drug/Polymer Composite Formulation has not met approvability requirements for approval by the MHLW or the FDA or a notified body for CE Mark
approval within thirty-six (36) months after the Effective Date, or if at any time Occam abandons development or testing of Biolimus A9 or the Drug/Polymer Composite Formulation,
then, at Xtent's option, (i) Xtent may terminate this Agreement with thirty (30) days written notice, or (ii) at Xtent's option the Agreement will continue pursuant to the
licenses under Sections 2.1(a) and (b), but Section 2.3(b) shall terminate. 

        5.3    Payment for Testing, Trials and Submissions.    Xtent shall be solely responsible for all costs and expenses in
connection with the conduct of all necessary studies, testing and trials in connection with the Coated Stents and the preparation and filing of submissions to the necessary regulatory bodies. 

        5.4    Regulatory Agencies and Interactions.    The parties understand and agree that Xtent, itself or through its
agents, shall have the sole right to correspond with and submit regulatory applications and other filings to the FDA, MHLW or other regulatory agencies to obtain approvals to import, export, sell or
otherwise commercialize the Coated Stents alone or with other products or services (collectively, "Approvals") as Xtent deems useful or necessary.
Accordingly, except as otherwise required by law, Occam shall not correspond directly with the FDA, MHLW or any other regulatory agency relating to the process of obtaining Approvals or any obtained
Approval for the Coated Stents, without Xtent's prior permission. Notwithstanding the foregoing, Occam agrees to assist Xtent, as reasonably requested by Xtent and at Xtent's expense, in preparing,
submitting and maintaining applications for such 

11

 

Approvals.
In connection with Occam's assistance therewith, Xtent agrees to provide Occam with copies of all communications and filings with regulatory agencies. 

        5.5   If
Occam desires to make a significant change in its manufacturing methods, specifications, quality systems or other related issues affecting Occam Items, Occam shall
provide Xtent with information regarding such significant change. Occam shall work with Xtent to enable it to maintain its regulatory approvals. Occam shall only make any such significant change(s)
(i) after regulatory approval for such change(s) has been obtained or (ii) Occam confirms after consultation with Xtent that approval of the change(s) is not required. For the purpose of
this section, "significant change" means any change of which Xtent needs to be informed due to applicable legal or governmental requirements or any change clearly noticeable on Occam Items or
packaging. 

        5.6    Reporting.    Pursuant to the FDA's, the MHLW's, or any other applicable regulatory agency's regulations and
policies, Xtent may be required to report to such regulatory agency information that reasonably suggests that the Coated Stents may have caused or contributed to the death or serious injury, and Occam
may be required to report to such regulatory agency information that reasonably suggests that the Occam Items may have caused or contributed to the death or serious injury. Accordingly, a Party
reporting such information to such a regulatory agency shall inform the other Party of any such information promptly after becoming aware of it so that the other Party can comply with its own
reporting requirements. 

        5.7    Information.    Without limiting the provisions of Section 3.5 above, Occam shall promptly provide Xtent
with all written and other information, in Occam's control (excluding confidential information of third parties, except to the extent such information is required to be provided or obtained pursuant
to Section 5.2), that is necessary or useful for Xtent to apply for, obtain and thereafter maintain Approvals (as defined in Section 5.4) for the Coated Stents in Europe, Japan and the
United States, including, without limitation, information relating to the facilities at which the Coating Services are performed and at which the Occam Items are manufactured, processed or packaged,
information about process, methodology or components used in such Coating Services or the manufacture, processing, or packaging of Occam Items. 

        (a)   Also,
without limiting the provisions of this Section 5.7, Occam and Xtent agree to meet at least once per quarter at which time Occam shall inform Xtent when any
information provided hereunder is no longer current or no longer reflective of current practices related to processing, manufacturing, packaging and performing the Occam Items, and shall provide
updated information to Xtent. 

        (b)   For
avoidance of doubt, to the extent such the information provided to Xtent under this Section 5.7 is Confidential Information of Occam, then the same shall be
subject to the provisions of ARTICLE X below. 

 
 

ARTICLE VI    
    
    REPRESENTATIONS AND WARRANTIES OF OCCAM    
    

        Occam represents and warrants to Xtent as follows: 

        6.1    Organization of Occam.    Occam is a corporation duly organized, validly existing and in good standing under
the laws of the Netherlands. Occam has full power and authority to own, lease and operate its properties and to conduct its business in the manner and in the places where such properties are owned or
leased or its business is conducted. 

12

  

        6.2    Authorization of Transaction.    Occam has full corporate power and authority to execute, deliver and
perform
this Agreement and to carry out the transactions contemplated herein. All necessary actions, corporate or otherwise, have been taken by Occam to authorize and approve the execution, delivery and
performance of this Agreement and the transactions contemplated herein, and this Agreement is the legal, valid and binding obligation of Occam, enforceable against Occam in accordance with its terms,
except to the extent enforceability may be limited by applicable bankruptcy, reorganization, insolvency, moratorium or other similar laws from time to time in effect affecting creditors' rights
generally or by principles governing the availability of equitable remedies (collectively, "Enforcement Limitations"). 

        6.3    No Conflict With Obligations and Laws.    Neither the execution, delivery and performance of this Agreement,
nor the performance of the transactions contemplated by this Agreement, will: (a) constitute a breach or violation of any provision of Occam's charter documents or by-laws;
(b) to the knowledge of Occam, require any authorization, approval, consent or waiver of any governmental authority or third party; (c) constitute (with or without the passage of time or
giving of notice) a default under or breach of any contract, agreement, instrument, commitment or obligation to which Occam is a party or by which Occam is bound or give any Person the right to
declare a breach, accelerate, terminate, modify or cancel any right or obligation thereunder, which in any such case would reasonably be expected to have a Material Adverse Effect; or (d) to
the knowledge of Occam, result in a violation of any law, rule, regulation, administrative order or judicial order, decree or judgment, which in any such case would reasonably be expected to have a
Material Adverse Effect. 

        6.4    Licensed Patents.    [*]. Exhibit 1.14 sets forth a complete and correct list of
all patent applications and invention disclosures currently owned by Occam or licensed by Occam from one or more of its Affiliates related to Biolimus A9, Occam's Polymer Coating, Occam's Drug/Polymer
Composite Formulation and/or Occam's Lubricious Coating. [*]. 

        6.5    Finder's Fees.    Occam has not incurred nor become liable for any broker's commission or finder's fees
relating to or in connection with the transactions contemplated by this Agreement. 

        6.6    Litigation.    Occam has received no notice of any, and Occam has no knowledge of any, pending or threatened
claim, action, suit, arbitration or other proceeding pending or, to the knowledge of Occam, threatened against Occam that will or would prevent or hinder the consummation of the transactions
contemplated by this Agreement and to Occam's knowledge there is no outstanding court order, court decree or court stipulation applicable to Occam that relates to this Agreement or affects the
transactions contemplated by this Agreement. [*]. 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

13

 

        6.7    Product Warranties.    Occam warrants and represents that: 

        (a)   Specifications. All Occam Items provided hereunder shall comply with the specifications therefor, and, for active
ingredients, shall conform with the information shown on the certificate of analysis provided for the particular shipment; 

        (b)   cGMP.    All Occam Items provided hereunder will meet all applicable regulatory requirements (including
applicable cGMP regulations) imposed by applicable regulatory agencies with respect to any Approval; 

        (c)   Compliance with FFDCA.    None of the Occam Items provided hereunder shall be adulterated or misbranded within
the meaning of the Federal Food, Drug, and Cosmetic Act, 21 U.S.C. §301 et seq., as amended and in effect of the time of shipment; 

        (d)   No Encumbrance.    Title to all Occam Items other than Coating Services provided hereunder shall pass as
provided herein free and clear of any security interest, lien, or other encumbrance. 

        6.8    Warranty Disclaimers.    Occam warrants that the Coating Services will be performed in accordance with the
specifications given to Occam by Xtent. EXCEPT AS EXPRESSLY PROVIDED IN THIS ARTICLE VI, OCCAM MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, WITH RESPECT TO THE LICENSE
GRANTED HEREUNDER OR THE PRODUCTS OR SERVICES PROVIDED BY OCCAM. EXCEPT AS EXPRESSLY PROVIDED IN THIS ARTICLE VI, OCCAM HEREBY EXPRESSLY DISCLAIMS ANY IMPLIED OR EXPRESS WARRANTIES, INCLUDING ANY
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT, WITH RESPECT TO ANY RIGHTS LICENSED HEREUNDER OR THE PRODUCTS OR SERVICES PROVIDED BY OCCAM. UNDER NO
CIRCUMSTANCES WILL OCCAM BE LIABLE TO
XTENT OR ANY OF XTENT'S INDEMNIFIED PERSONS FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, SPECIAL OR EXEMPLARY DAMAGES, INCLUDING, WITHOUT LIMITATION, LOSS OF REVENUE OR ANTICIPATED PROFITS OR LOST
BUSINESS ARISING FROM ANY USE BY XTENT OR XTENT'S INDEMNIFIED PERSONS OF THE LICENSED ASSETS EVEN IF A REPRESENTATIVE OF OCCAM HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES OCCURRING. 

 
 

ARTICLE VII    
    
    REPRESENTATIONS AND WARRANTIES OFXTENT    
    

        Xtent hereby represents and warrants to Occam as follows: 

        7.1    Organization of Xtent.    Xtent is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware with full power and authority to own, lease and operate its properties and to conduct its business in the manner and in the places where such properties are owned or
leased or such business is conducted. 

        7.2    Authorization of Transaction.    Xtent has full corporate power and authority to execute, deliver and perform
this Agreement and to carry out the transactions contemplated herein. All necessary actions, corporate or otherwise, have been taken by Xtent to authorize and approve the execution, delivery and
performance of this Agreement and the transactions contemplated herein, and this Agreement is the legal, valid and binding obligation of Xtent enforceable in accordance with its terms, except to the
extent enforceability may be limited by Enforcement Limitations. 

        7.3    No Conflict of Transaction with Obligations and Laws.    Neither the execution, delivery and performance of
this Agreement, nor the performance of the transactions contemplated by this Agreement, will: (a) constitute a breach or violation of Xtent's Articles of Incorporation or by-laws; 

14

 

(b) require
any authorization, approval, consent or waiver of any governmental authority or third party; (c) constitute (with or without the passage of time or the giving of notice) a
default under or breach of any contract, agreement, instrument, commitment or obligation to which Xtent is a party or by which Xtent is bound, which in any such case would reasonably be expected to
have a Material Adverse Effect; or (d) result in a violation of any law, rule, regulation, administrative order, judicial order, decree or judgment applicable to Xtent, which in any such case
would reasonably be expected to have a Material Adverse Effect. 

        7.4    Finder's Fee.    Xtent has not incurred nor become liable for any broker's commission or finder's fees relating
to or in connection with the transactions contemplated by this Agreement. 

        7.5    Litigation.    Xtent has received no notice of any, and Xtent has no knowledge of any, pending or threatened
claim, action, suit, arbitration or other proceeding pending or, to the knowledge of Xtent, threatened against Xtent that will or would prevent or hinder the consummation of the transactions
contemplated by this Agreement and there is no outstanding court order, court decree or court stipulation applicable to Xtent that relates to this Agreement or affects the transactions contemplated by
this Agreement. 

        7.6    Rights Limited to Field of Use.    Xtent will not practice any of the rights in, to or under the Licensed
Assets outside of Xtent's Licensed Field of Use. 

        7.7    Option to Participate in Future Financings.    Xtent shall keep Occam informed in writing of any future
financing rounds or offerings of its equity or debt securities and shall give Occam the opportunity to participate pro rata in such financing rounds or offerings at a price not to exceed the lowest
price offered to those outside investors within a sixty (60) day period, preceding and subsequent to, the time at which Occam participates in such round or offering. 

        7.8    Issuance of Xtent Common Stock.    Xtent has 20,425,000 of shares of common stock authorized, of which
3,425,000 common shares are issued and outstanding. The issuance of Xtent shares to Occam pursuant to Section 4.1 (b) has been, or prior to the execution of this Agreement shall be, duly
approved by the Xtent's Board of Directors. All of the shares to be issued to Occam shall be fully paid, non-assessable and freely transferable without restriction, except as set forth in
the stock purchase agreement under which Occam obtains such shares. 

 
 

ARTICLE VIII    
    
    RIGHTS AND OBLIGATIONS SUBSEQUENT TO EXECUTION OF AGREEMENT    
    

        8.1    Survival of Warranties.    All representations, warranties, agreements, covenants and obligations contained in
or contemplated by this Agreement will be deemed to have been relied upon by the other Party and will survive the execution of this Agreement, regardless of any investigation and will not merge in the
performance of any obligation by the Parties hereto. 

        8.2    No Hiring.    For a period of one year following the Effective Date, neither Party will hire for employment any
employee of the other Party of whom such party becomes aware as a result of the transactions contemplated by this Agreement. Xtent shall use reasonable efforts to enforce its employee agreements at
Occam's request, when breach of such agreement is causing or would cause material harm to Occam. 

        8.3    Licensed Patents; Prosecution and Defense.    

        (a)   Occam
will have the sole right, but not the obligation, to prepare, prosecute and maintain the Licensed Patents. The cost of such preparation, prosecution and
maintenance of such Licensed Patents will be paid by Occam. 

        (b)   Each
Party will promptly notify the other Party in writing of any infringement, possible infringement, misappropriation or possible misappropriation, of any of the
Licensed Assets of 

15

 

which
it becomes aware. Occam will have the sole right, but not the obligation, to enforce the Licensed Assets at its own expense against third parties for infringement or misappropriation of the
Licensed Assets; Xtent may join such enforcement action at its discretion and at its expense. Any recovery obtained as a result of such enforcement of the Licensed Assets within Xtent's Licensed Field
of Use, by settlement or otherwise, will be retained or paid over to Occam. If Occam elects not to enforce the Licensed Assets against any infringement or misappropriation, then Occam will notify
Xtent of such election within ninety (90) days after becoming aware of such infringement or misappropriation, and Xtent will then have the right, but not the obligation, to enforce the Licensed
Assets at its own expense. Any recovery obtained as a result of such enforcement conducted by Xtent will be retained or paid over to Xtent; provided that for any portion of such recovery that was for
future sales, Xtent shall pay to Occam a royalty as if those future sales were Net Sales under this Agreement. 

        8.4    Insurance.    At such time as Xtent commences human clinical trials of Coated Stents, Xtent will obtain and
maintain in force at all times during the term of this Agreement, and for a period of three years thereafter, comprehensive general liability insurance, including product liability insurance, in an
amount [*] in the aggregate with a reasonable deductible per occurrence, [*]. The limits of such policy shall be incrased to [*]
upon commercialization of the product. Occam or its successor to the rights and obligations under this Agreement, if any, will be designated as additional insureds under such policy. A copy of such
insurance policy (ies) shall be provided to Occam prior to the commencement of human clinical trials of Coated Stents and shall be maintained for the entire term of this Agreement (including any
renewals thereof) and for a period of three (3) years after the termination or expiration hereof. The policy shall provide for thirty (30) day written notice to Occam (or its designee)
by the insurer in the event of any modifications, cancellation or termination thereof. 

        8.5    Use of Word "Biolimus."    So long as this Agreement remains in full force and effect and Xtent is performing
its obligations hereunder, Xtent shall have the limited right to use the name "Biolimus A9" in connection with the marketing and promotion of the Coated Stents, as well as references to any applicable
clinical studies or other technical information made available by Occam for Xtent's marketing purposes. Except for the limited license set forth herein, Xtent shall not use the name Biolimus A9, nor
any other name or trademark of Occam and its Affiliates for any other purpose without the prior written consent of Occam and then, only as necessary in connection with Xtent's performance hereunder.
Upon expiration or termination of this Agreement, Xtent shall cease using any name or mark belonging to Occam or its Affiliates; provided, however, Xtent may continue to use the mark in connection
with the sale of remaining inventory of Coated Stents. The license granted hereby conveys no right to register any name or mark of Occam. 

        8.6    Other Occam Programs.    Xtent acknowledges that Occam and its Affiliates are engaged in the development and
commercialization of drug-eluting stents using active pharmaceutical compounds, including Biolimus A9 and other compounds, and that Occam and such Affiliates may engage in research,
development and commercialization programs that may compete with Xtent's own programs. Nothing in this Agreement shall be construed to prevent Occam and its Affiliates from, engaging in such research
and development programs and neither Occam nor its Affiliates shall have any obligation to Xtent in connection therewith, provided that Occam is complying with its obligations under this Agreement and
any other agreement between Occam (or any of its Affiliates) and Xtent (and any of its Affiliates) regarding confidential information or proprietary rights. 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

16

 

        8.7    Future Improvements.    

        (a)   The
Parties agree that, as between the Parties, any Invention conceived or developed during the term of this Agreement and related specifically to processes for coating
Stents with Occam's Drug/Polymer Composite Formulation, Occam's Polymer Coating or Biolimus A9, whether conceived or developed jointly by the Parties or solely by either Party
("Process Improvements"), and the intellectual property rights therein and thereto, shall be the sole property of Occam. To the extent Xtent becomes the
owner of such Process Improvements, Xtent agrees to.assign and hereby assigns to Occam all of its right, title and interest in and to such Process Improvements and the intellectual property rights
therein and thereto. As to Process Improvements invented solely or jointly by Xtent, Occam agrees to grant Xtent, and hereby grants Xtent, for consideration herein acknowledged, a
non-exclusive,
paid up, perpetual and irrevocable right and license, under all of the intellectual property rights in such Process Improvements, to make, use, sell and offer to sell any product, other than the Occam
Items, and to practice any method or process. The foregoing license shall survive the expiration or termination of this Agreement. It is understood that nothing in this Section creates any additional
license or right with respect to Occam Items beyond that set forth in Article II hereof. 

        (b)   The
Parties agree that except as otherwise set forth in subsection (c) below, all Inventions that are improvements of the Occam Items (including Biolimus A9,
Occam's Drug/Polymer Composite Formulation, Occam's Lubricious Coating or the processes used in performing the Coating Services), which Inventions are determined to be such because they are derived
from the Confidential Information of Occam ("Occam-Related Improvements"), and the intellectual property rights therein and thereto, shall be the sole
property of Occam (or such Affiliate of Occam, as applicable). To the extent Xtent becomes the owner of any Occam-Related Improvements, Xtent agrees to assign and hereby assigns to Occam all of its
right, title and, interest in and to such Occam-Related Improvements and the intellectual property rights therein and thereto. 

        (c)   The
Parties agree that, all Inventions that are improvements of the Xtent Stent or Xtent Stent System, which Inventions are determined to be such because they are
derived from the Confidential Information of Xtent ("Xtent-Related Improvements") and the intellectual property rights therein and thereto, shall be the
sole property of Xtent (or such Affiliate of Xtent, as applicable). To the extent Occam becomes the owner of any Xtent-Related Improvements, Occam agrees to assign and hereby assigns to Xtent all of
its right, title and interest in and to such Xtent-Related Improvements and the intellectual property rights therein and thereto. 

        (d)   For
any Occam-Related Improvements developed or conceived solely or jointly by Xtent during the term of this Agreement that have application to the Xtent Stent or Xtent
Stent System, Occam agrees to grant and does hereby grant Xtent, for consideration herein acknowledged, a non-exclusive paid up, perpetual and irrevocable license, under all of Occam's
right, title, and interest in and to such Occam-Related Improvements, to make, use, sell and offer to sell any product, other than Occam Items, and to practice any method or process. The foregoing
license shall survive the expiration or termination of this Agreement. It is understood that nothing in this Section creates any additional license or right with respect to the Occam Items beyond that
set forth in Article II hereof. 

        (e)   For
any Xtent-Related Improvements developed or conceived solely or jointly by Occam during the term of this Agreement and related to the Occam Items (i.e., Occam's
Drug/Polymer Composite Formulation, Occam's Polymer Coating or Biolimus A9), Xtent agrees to grant and does hereby grant Occam, for consideration herein acknowledged, a non-exclusive,
paid-up, perpetual and irrevocable right and license, under all of Xtent's right, title, and interest in and to such Xtent-Related Improvements, to make, use, sell and offer to sell any
product, and to practice any method or process. The foregoing license shall survive expiration or termination of this Agreement. 

17

 

        8.8    Xtent Inspections.    While it is understood that nothing herein provides Xtent the right to see, review, or
inspect production processes regarded as proprietary by Occam other than as expressly provided elsewhere (including but not limited to Section 8.9), Occam shall permit Xtent to review
periodically Occam's non-proprietary production and quality control procedures and records and to visit Occam's, or its permitted designee's, facilities at reasonable times with a
representative of Occam present in order to assure satisfaction of the requirements of this Agreement. Notwithstanding the foregoing, if an audit by a regulatory authority is required or advisable in
connection with obtaining approval by such authority, then Occam shall cooperate with such inspection, including as set forth in Section 8.9. 

        8.9    Regulatory Inspections.    Occam shall permit the FDA, MHLW or other regulatory agencies to conduct inspections
of its facilities as such regulatory agencies may request, and shall cooperate with the FDA, MHLW or such other regulatory agencies with respect to such inspections and any related matters, in each
case as related to any Occam Items. Occam shall provide Xtent with prior notice (when possible) of any such inspections, and shall keep Xtent informed about the results and conclusions of each such
regulatory inspection, including actions taken by Occam to remedy conditions cited in such inspections. In addition, Occam shall allow Xtent or its representative to be present at such inspections
with respect to those portions of the facilities and equipment used directly for providing the Coating Services for Xtent's Stents. Occam shall provide Xtent with copies of any written inspection
reports issued by such agencies and all correspondence between Occam and the relevant agency associated with such inspection, including, but not limited to, FDA Form 483, Notice of Observation,
and all correspondence relating thereto, in each case relating to the Coated Stents. Xtent and its regulatory consultants under reasonable confidentiality requirements, shall have access to all
quality assurance and cGMP audits of Occam Items for the purpose of assessment of regulatory compliance. 

        8.10    Complaints.    If either Party receives complaints, claims, or similar communications from third parties
(including, without limitation, distributors, customers, hospitals, physicians and users, collectively "Customers") of Covered Products, such party
shall promptly notify the other party of the contents thereof. If Xtent is unable to determine the cause underlying a Customer complaint regarding the Xtent Stent Systems, Xtent may request that Occam
assist Xtent in investigating the problem and Occam shall promptly take all reasonable steps to investigate it and shall notify Xtent of the results thereof as soon as practicable. 

        (a)   If
the problem in reference to the Xtent Stents or Xtent Stent Systems,-Xtent shall be responsible for first conducting all necessary investigations and shall promptly
report the results thereof to Occam. If Xtent believes that the problem is attributable to Occam Items, Occam will further investigate the problem and if both parties determine that the problem is due
to a defect attributable to Occam, Occam shall take whatever steps are reasonably necessary to correct the problem at its own cost. If the parties determine mat the problem is due to a defect
attributable to Xtent, Xtent shall take whatever steps are reasonably necessary to correct the problem at its own cost. 

        (b)   Xtent
will bear the cost of repairing or replacing all defective or non-conforming Xtent Stents and Xtent Stent Systems unless the parties determine that the
problem is attributable to
Occam. Xtent shall also be responsible for complaints arising from or attributable to the acts or omissions of Xtent's distributors and sales agents. 

        8.11    Recalls.    Xtent shall have the right to recall Xtent Stents or Xtent Stent Systems sold under this Agreement
if it is determined to be necessary or upon the direction of the competent and/or government authorities. If the parties determine that the product failure is due to a defect in Occam Items, the
reasonable costs and expenses of the investigation and recall shall be borne by Occam. If the parties determine that the product failure is due to a defect in the Xtent's Stents or Stent Systems, or 

18

 

is
a result of Xtent's manufacturing or coating, Xtent shall bear the cost and expenses of the investigation and recall. If the product failure is a result of a combination of contributing factors or
the actual cause cannot be determined, the costs and expenses of the investigation and recall shall be borne by the Parties in the same proportion as Xtent's net profit from sales of Royalty Bearing
Products (gross profits, less applicable royalties, administrative and marketing costs) bears to actual royalties received by Occam. If Xtent requests Occam to assist Xtent with the investigation or
correction procedure, Occam shall do so and all costs thereof shall be borne by Xtent unless otherwise provided herein. 

 
 

ARTICLE IX    
    
    INDEMNIFICATION    
    

        9.1    General Indemnification by Occam.    Subject to the pro visions of this Article IX, Occam will defend,
indemnify and hold harmless Xtent's Indemnified Persons from and against all Losses directly or indirectly incurred by any of them resulting from or arising out of any of the following: 

        (a)   any
breach of any of the representations or warranties made by Occam contained in this Agreement; 

        (b)   any
breach of any of the covenants or agreements made by Occam in this Agreement; and 

        (c)   any
breach of any duties or obligations respecting the use and/or disclosure of Xtent's (or its Affiliates') Confidential Information by Occam and/or its Affiliates. 

        Occam's
liability to Xtent's Indemnified Persons hereunder shall not exceed, in the aggregate, that amount paid to Occam by Xtent pursuant to the terms of this Agreement, unless and
solely to the extent such Losses arise from the gross negligence or willful misconduct of Occam. 

        9.2    General Indemnification by Xtent.    Subject to the provisions of this Article IX, Xtent will defend,
indemnify and hold harmless Occam's Indemnified Persons from and against all Losses directly or indirectly incurred by or sought to be imposed upon any of them resulting from or arising out of any of
the following: 

        (a)   any
breach of any of the representations or warranties made by Xtent in this Agreement; 

        (b)   any
breach of any of the covenants or agreements made by Xtent in this Agreement; 

        (c)   the
research, development, use, sale or commercialization by Xtent or any of its Sublicensees of any Royalty Bearing Products, or any other product utilizing any of the
Licensed Assets, except for any liability or obligation arising from Occam's work in connection therewith; 

        (d)   any
liability or obligation arising from or in connection with the tests, trials, and/or submissions conducted or performed by Xtent or its Sublicensees, except for any
liability or obligation arising from Occam's work in connection therewith; and 

        (e)   any
breach of any duties or obligations respecting the use and/or disclosure of Occam's (or its Affiliates') Confidential Information by Xtent and/or its Sublicensees. 

        Xtent's
liability to Occam's Indemnified Persons hereunder shall not exceed, in the aggregate, that amount paid to Occam by Xtent pursuant to the terms of this Agreement, unless and
solely to the extent such Losses arise from the gross negligence or willful misconduct of Xtent. 

19

  

        9.3    Limitation on General Indemnification.    Neither Occam nor Xtent will have any indemnification liability
under
this Article unless one or more of the Indemnified Persons gives written notice to the applicable Indemnifying Person asserting a claim for indemnification in accordance with the procedures set forth
in Section 9.4 of this Agreement. 

        9.4    Notice and Procedures.    

        (a)   An
Indemnified Person will give prompt written notice to the Indemnifying Person of each claim for indemnification hereunder, specifying the amount and nature of the
claim, and of any matter which in the opinion of the Indemnifying Person is likely to give rise to an indemnification claim. The omission to give such notice to an Indemnifying Person will not relieve
the Indemnifying Person of any liability under this Article except to the extent it was prejudiced thereby. As soon as practicable after the date of such notice, the Indemnified Person will provide
the Indemnifying Person all information and documentation necessary to support and verify the Losses so claimed and the Indemnifying Person and its representatives will be given access to all books
and records in the possession or control of the Indemnified Person which the Indemnifying Person reasonably determines to be related to such claim. The Indemnifying Person will have the right to
defend the Indemnified Person against such claim for Losses with counsel of its choice. 

        (b)   So
long as the Indemnifying Person is conducting the defense of the claim for Losses in accordance with this Section 9.4, (i) the Indemnified Person may
retain separate co-counsel, at its sole cost and expense, and participate in the defense of the claim, (ii) the Indemnified Person will not consent to the entry of any judgment or
enter into any settlement with respect to the claim without the prior written consent of the Indemnifying Person, which consent will not be unreasonably withheld or delayed, (iii) the
Indemnified Person will reasonably cooperate with the Indemnifying Person's defense of such claim, and (iv) the Indemnifying Person will not consent to the entry of any judgment or enter into
any settlement with respect to the claim without the prior. written consent of the Indemnified Person, which consent will not be unreasonably withheld or delayed; provided, however, that such consent
of the Indemnified Person will not be required if the judgment or settlement contains a full release of claims against the Indemnified Person. Notwithstanding any other provision of this
Section 9.4, if an Indemnified Person withholds its consent to a bona fide settlement offer, where but for such action the Indemnifying Person could have settled such claim, the Indemnifying
Person will be required to indemnify the Indemnified Person only up to a maximum of the bona fide settlement offer for which the Indemnifying Person could have settled such claim. 

        9.5    Payment of Indemnification.    Claims of indemnification under this Article will be paid or otherwise satisfied
by the Indemnifying Person within thirty (30) days after notice thereof is given by the Indemnified Person and after the parties agree on the allocation of responsibility for the items
underlying those claims of indemnification. Unless the Party receiving a claim of indemnification objects within fifteen (15) days to the amount or allocation, it will be deemed to have agreed
on the allocation represented by the claim of indemnification. Payments made after the due date will bear interest at an annual rate equal to the prime rate as published in the Wall Street Journal as
of the 30th day following such notice plus five percent (5%), or the maximum allowed by law, if less, but not to exceed twelve percent (12%), in each case on that portion of the claim
that represents actual out- of- pocket expenses paid by the Indemnified Person (if any). 

20

 
 
 

ARTICLE X    
    
    CONFIDENTIALITY    
    

        10.1    Confidentiality.    

        (a)   "Confidential Information" means, except as provided below, confidential and proprietary information of a Party, whether
in written, printed, verbal or electronic form, and whether disclosed before or after the Effective Date, including research and development activities, product design details and specifications,
molecular structures, technology and know-how, sales and marketing plans, finances and business forecasts, procurement requirements and vendor information, customer lists, personnel
information and strategic plans. Confidential Information will not include information that: (i) is now, or hereafter becomes generally known or available to the public through no act or
failure to act on the part of the receiving Party; (ii) was acquired by the receiving Party before receiving such information from the disclosing Party through no breach of any duty of
confidentiality owed to the disclosing Party and without restriction as to use or disclosure; (iii) is hereafter rightfully furnished to the receiving Party by a third party without any breach
of any duty of confidentiality owed to the disclosing Party and without restriction as to use or disclosure; or (iv) is information that the receiving Party can document was independently
developed by the receiving Party without use of the disclosing Party's Confidential Information. 

        (b)   Each
Party, when it is the receiving Party agrees: (i) to hold the disclosing Party's Confidential Information in strict confidence and not to disclose such
Confidential Information to any other person
or entity without the prior written consent of the disclosing Party; (ii) not to use, at any time following the execution of this Agreement, any Confidential Information of the disclosing Party
for its own benefit or for the benefit of any other person or entity for any purpose other than for the express purposes permitted under this Agreement; and (iii) to limit the disclosure of
Confidential Information to Permitted Persons. For purposes hereof, the term "Permitted Person" shall mean the receiving officers, directors, employees and agents who have a need to know in order to
carry out the obligations under this Agreement, provided each has agreed in writing to maintain the confidentiality of the Confidential Information in a manner no less protective than that set forth
herein and "Permitted Persons" shall be deemed to include the Affiliates of Occam. Each Party shall be responsible for ensuring compliance with the provisions contained in this Section 10.1 by
their respective officers, directors, employees and agents. 

        (c)   The
restrictions contained in this Section 10.1 will not apply to any disclosures by Occam to prospective investors, acquirers or other financing sources in
private business discussions. Occam will be permitted to disclose the existence or terms of this Agreement with any prospective investor, acquirer or other financing source, so long as such third
party has agreed in writing to be bound by confidentiality provisions substantially similar to those contained in this Section 10.1. Notwithstanding the foregoing, Occam shall not disclose,
without the prior written consent of Xtent, any Confidential Information related to Xtent's Stent or the Xtent Stent System. 

        (d)   In
the event a receiving Party is required to disclose Confidential Information of the disclosing Party by any applicable law, regulation, legal process, judicial order
or by any applicable order or requirement of any governmental or regulatory authority, it may do so only to the extent required thereby; provided, however, that the receiving Party will (i) use
reasonable efforts under the circumstances to provide advance notice to the disclosing Party of the required disclosure to allow the disclosing Party an opportunity to take steps to object to, prevent
or limit its disclosure or obtain a protective or other similar order with respect to the required disclosure and (ii) restrict disclosure to only that portion of the Confidential Information
that is required to be disclosed. 

        (e)   The
receiving Party agrees that its obligations hereunder are necessary and reasonable to protect the disclosing Party's business interests and that the unauthorized
disclosure or use of the 

21

 

disclosing
Party's Confidential Information may cause irreparable harm and significant injury, the degree of which may be difficult to ascertain. The receiving Party further acknowledges and agrees
that in the event of any actual or threatened breach of this Agreement, the disclosing Party may seek an injunction enjoining any breach or threatened breach of this Agreement, as well as the right to
pursue any and all other rights and remedies available at law or in equity for such breach or threatened breach. 

        (f)    Upon
the request of the disclosing Party and/or termination of this Agreement, the receiving Party will promptly return to the disclosing Party or destroy all material
embodying Confidential Information in its possession or under its control, including all copies thereof, provided however, the receiving Party
shall be entitled to retain any such material that it is required to maintain pursuant to applicable law or regulation. 

 
 

ARTICLE XI    
    
    TERM AND TERMINATION OF AGREEMENT    
    

        11.1    Term of Agreement.    This Agreement shall commence upon the Effective Date of this Agreement and shall
continue in force for a period of eight (8) years from the first date on which approval of the coated Xtent Stents is received from a regulatory body, unless earlier terminated pursuant to the
provisions hereof. Either party may cause this Agreement to terminate upon the expiration of the initial eight-year term by providing at least three (3) years advance written notice
to the other Party. Unless otherwise terminated, after the initial eight-year term, this Agreement shall automatically extend for up to one (1) additional three-year
term. 

        11.2    Termination or Limitation by Xtent.    

        (a)   Xtent's
exclusivity obligations under Section 2.3(b) will terminate (i) as set forth in Section 5.2(b); or (ii) if Xtent is subject to a
Change of Control (as defined in Section 12.6). 

        (b)   The
license from Xtent to Occam under Section 2.2 automatically will be converted to a non-exclusive license (i) as set forth in
Section 2.2(a), or (ii) if Occam fails to meet any minimum sales commitments agreed to under Section 2.2(b) in any period. 

        11.3    Termination for Cause.    

        (a)    By Xtent.    This Agreement may be terminated by Xtent if at any time following the Effective Date:
(i) Xtent determines that there existed a breach of any representation or warranty by Occam contained in this Agreement in any material respect at the Effective Date and Occam fails to cure
such breach within sixty (60) days after receiving written notice thereof from Xtent; or (ii) Occam fails to perform any post-execution obligation or covenant contained in
this Agreement, provided, however, that if such failure is capable of being cured, then such termination right will not exist unless
such failure has not been cured within sixty (60) days of Xtent's delivery to Occam of written notice of such failure or (iii) pursuant to the provisions of Section 5.2(b). 

        (b)    By Occam.    In addition to the termination provisions contained elsewhere in this Agreement, this Agreement
may be terminated by Occam if at any time following the Effective Date: (i) Occam determines that there existed a breach of any representation or warranty by Xtent contained in this Agreement
in any material respect at the Effective Date and Xtent fails to cure such breach within sixty (60) days after receiving written notice thereof from Occam; (ii) Xtent fails to perform
any post-execution obligation or covenant contained in this Agreement, provided, however, that if such failure is capable of being cured, then such termination right will not exist unless
such failure has not been cured within sixty (60) days of Occam's delivery to Xtent of written notice of such failure; (iii) pursuant to the provisions of Section 4.2(d), or
[*]. 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

22

 

        (c)    By Either Party for Insolvency.    In addition to the above rights to terminate, either Party may terminate on
ten (10) days' written notice to the other if that other Party makes an assignment for the benefit of creditors, files a petition in bankruptcy, is adjudicated insolvent or bankrupt, or if a
receiver or trustee is appointed with respect to a substantial part of its assets or a similar proceeding is commenced against that Party that would substantially impair its ability to perform
hereunder. 

        11.4    Effect of Termination.    Each Party's right of termination under this Article is in addition to any other
rights it may have under this Agreement or otherwise, and the exercise of a right of termination will not be an election of remedies. If this Agreement is terminated pursuant to this Article, all
further rights and obligations of the Parties under this Agreement will terminate, including, without limitation, the license granted hereunder, except that the rights and obligations set forth in
Sections 3.7(d), 4.2 (excluding 4.2(d)), 4.3, 5.4, 5.6, and 11.4, and ARTICLE VI, ARTICLE VII, ARTICLE VIII, ARTICLE IX, ARTICLE X, and ARTICLE XII, and each of their subparts, will survive in
accordance with their respective terms; provided, however, that if this Agreement is terminated by a Party because of the breach of this Agreement by another Party or because one or more of the
conditions to the terminating Party's obligations under this Agreement is not satisfied as a result of another Party's failure to comply with its obligations under this Agreement, the terminating
Party's right to pursue all remedies will survive such termination unimpaired. Notwithstanding the foregoing, in the event of a termination, Xtent shall continue to have the rights granted herein to
the extent necessary to sell any remaining inventory and to complete and sell any work-in-process, subject
to the payment of percentage royalties as set forth in Section 4.2 and all payments due to Occam shall be made by Xtent. 

 
 

ARTICLE XII    
    
    MISCELLANEOUS    
    

        12.1    Fees and Expenses.    Except as provided below, each of the Parties will bear its own legal, accounting and
all other expenses in connection with the negotiation and the consummation of the transactions contemplated by this Agreement. 

        12.2    Notices.    Any notice or other communication in connection with this Agreement must be in writing, must be
addressed as provided below and will be deemed delivered when (a) actually delivered electronically (including in the form of facsimile transmission with receipt confirmed) or in person,
provided that delivery is made during normal business hours, (b) three business days have elapsed after deposit in the United States mail, postage prepaid and registered or certified, return
receipt requested, or (c) two business days after sent by nationally recognized overnight receipted courier: 

if
to Occam, to: 

Occam
International B.V.

Beemdsrraat 23,

5653 MA Eindhoven

The Netherlands 

Telephone:
+41 (0) 40 250 2065

Facsimile: +41(0) 40 250 2099

Attention: Managing Director 

23

 

with
a copy (which will not constitute notice to either Occam) to: 

Karen
G. Krasney, Esq.

135 S. Thurston Avenue

Los Angeles, CA 90049

Telephone: (310) 471-1530

Facsimile: (310) 471-4531 

and
(which will not constitute notice to either Occam) to: 

Paul,
Hastings, Janofsky & Walker LLP

515 South Flower Street, 25th Floor

Los Angeles, CA 90071-2371

Telephone: (213) 683-6000

Facsimile: (213) 627-0705

Attention: Rob R. Carlson, Esq. 

if
to Xtent, to: 

Xtent,
Inc.

125 Constitution Drive

Menlo Park, CA 94025

Telephone: (650) 475-9400

Facsimile: (650) 475-9401

Attention: Hank Plain, Chief Executive Officer 

with
a copy (which will not constitute notice to Xtent) to: 

Jeff
Grainger, Esq.

125 Constitution Drive

Menlo Park, CA 94025

Telephone: (650) 475-9400

Facsimile: (650) 475-9401 

        and
in any case at such other address as a Party may specify by written notice. All periods of notice will be measured from the date of deemed delivery as provided in this Section. 

        12.3    Publicity and Disclosure of Agreement.    On or after the date of this Agreement, the Parties may issue press
releases substantially in the form attached hereto as Exhibit 12.3. No other press releases or any public disclosure, either written or oral, of the transactions contemplated by this Agreement
may be made that discloses additional information without the mutual consent of the Parties, except to announce the execution of this Agreement or to the extent required by applicable law, rule or
regulation (including stock exchange requirement). Either Party may disclose the existence of this Agreement, but may not disclose the terms without the other Party's written consent, except
(i) as required by law or by a court or other governmental body; (ii) in confidence to legal counsel, accountants, or banks; (iii) in confidence and using sound discretion, to
actual and potential financing sources and their advisors; (iv) in confidence, in connection with the enforcement of this Agreement or rights under this Agreement; (v) in confidence, in
connection with a merger, acquisition of stock or assets, proposed merger or acquisition, or the like; or (vi) as advisable or required in connection with any government or regulatory filings,
including without limitation filings with the SEC and in connection with an initial public offering; provided that to the extent such a release of information is required by applicable law, rule or
regulation (including stock exchange requirement), the disclosing Party will use commercially reasonable efforts to ensure that the content is accurate and in accordance with reasonable business
standards and will, to the extent practicable, provide the other Party with advance notice of the proposed disclosure and an opportunity to review and comment upon such 

24

 

disclosure.
Notwithstanding the foregoing, nothing contained herein shall be construed to permit the any disclosure by Xtent of Occam's Confidential Information related to Occam's Drug/Polymer
Composite Formulation, Biolimus A9, Occam's Polymer Costing or Occam's Lubricious Coating following the execution of this Agreement, which is hereby prohibited under all circumstances without the
prior written approval of Occam. 

        12.4    Entire Agreement.    This Agreement (including all exhibits) and all documents delivered pursuant to or
referred to in this Agreement constitute the entire agreement between the Parties with respect to the subject matter hereof and thereof, and all promises, representations, understandings, warranties,
agreements and inducements to the making of this Agreement relied upon by any Party have been expressed in this Agreement or in such documents. This Agreement (including all exhibits) supercedes and
replaces all prior agreements, written or oral, between the Parties with respect to the subject matter hereof, including the Term Sheet dated August 22, 2003 executed by the Parties. 

        12.5    Severability.    The invalidity or unenforceability of any provision of this Agreement will not affect the
validity or enforceability of any other provision of this Agreement, and such invalidity or unenforceability in any specific situation will not affect the validity or enforceability of such provision
in other situations. Additionally, to the extent any provision of this Agreement is invalid or unenforceable, it will be interpreted and applied as close to its original meaning as is permissible. 

        12.6    Assignability.    Except in connection with a Change of Control, which is subject to
Section 12.6(a)-(d), neither this Agreement, nor any right or obligation hereunder, may be assigned by Xtent without the prior written consent of Occam. In addition, except in connection with a
Change of Control, any attempted transfer by Xtent of the technology related to the Occam Items shall be subject to the prior
written approval of Occam. Unless otherwise expressly consented to by Occam, no assignment by Xtent will relieve Xtent of any obligations under any agreement, document or instrument executed and
delivered pursuant to this Agreement. Any purported assignment in violation of this Agreement will be null and void and shall give Occam the option to immediately terminate this Agreement. Occam shall
have the right to assign this Agreement in its discretion. Subject to the foregoing, this Agreement will inure to the benefit of and be binding upon the Parties and their respective successors and
permitted assigns. 

        (a)   In
the event Occam enters into an agreement for a Change of Control or grants another entity an option or right to enter into an agreement for a Change of Control, the
acquiring or surviving entity shall be bound by the terms and conditions of this Agreement. 

        (b)   In
the event Xtent enters into an agreement for a Change of Control or grants another entity an option or right to enter into an agreement for a Change of Control, the
following shall apply: 

        (i)    Such
acquiring or surviving entity shall have the right to buy-back the distribution rights granted to Occam under Section 2.2 for the Pacific Rim
Countries. In the event an acquiring or surviving entity of Xtent exercises its right to buy back distribution rights for the Pacific Rim Countries, [*] 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

25

 

        (ii)   If
at the time of such Change of Control the acquiring entity markets a Stent for coronary or peripheral applications incorporating Rapamycin or an analog thereof, then
Occam's obligations under Section 3.8 following a Supply Failure shall terminate except for the obligation to transfer to such entity tooling and fixtures developed specifically for Xtent's
Stent; provided, however, that in the event of such a Change of Control, if a Supply Failure occurs as set forth in Section 3.8 above, Occam shall supply to the acquiring or surviving entity
its requirements of Occam's Drug/Polymer Composite Formulation, Biolimus A9, Occam's Polymer Coating, and Occam's Lubricious Coating for purposes of incorporating such items with Xtent's Stents and
Xtent Stent Systems (whether in its own facility or through a third party in another facility); and further provided that the license set forth in Section 3.8 to perform or have performed the
Coating Services shall remain in force but only for the limited purpose of allowing such entity to incorporate Occam's Drug/Polymer Composite Formulation, Biolimus A9,
Occam's Polymer Coating, and Occam's Lubricious Coating with Xtent's Stents and Xtent Stent Systems without the use of Occam's Confidential Information (including the Licensed Know-How)
pertaining to the Occam Items. All licenses under ARTICLE II shall remain in force to allow such acquiring entity to import, export, use, sell, and offer for sale Xtent's Stents and Xtent Stent
Systems incorporating any of the Occam Items. 

        (iii)  In
advance of any Change of Control, Xtent shall limit disclosure of Occam's Confidential Information to only that information necessary for obtaining and maintaining
regulatory approvals for (as set forth in ARTICLE V), and for marketing or selling Xtent's Stents or Xtent Stent Systems incorporating any of the Occam Items. If Xtent reasonably believes that a
change of control may occur, Xtent shall promptly notify Occam and Xtent shall promptly return to Occam all of Occam's Confidential Information as may be requested in writing by Occam, except that
which is necessary for the foregoing. 

        (c)   In
the event Xtent enters into an agreement for a Change of Control, or grants another entity an option or right to enter into an agreement for a Change of Control,
Xtent or the surviving entity-shall have the right, but not the obligation, to either (i) terminate this Agreement and all rights hereunder upon thirty (30) days written notice to Xtent;
or (ii) terminate the exclusivity obligations under Section 2.3(b). 

        (d)   For
purposes of this Agreement, "Change of Control" means a transaction or a series of related transactions in which
(i) one or more related parties who did not previously own at least a fifty percent (50%) interest in a Party to this Agreement obtain at least a fifty percent (50%) interest in such Party, or
(ii) a third party acquires all or substantially all of the assets to which this Agreement relates, or (iii) a Party acquires, by merger, acquisition of assets or otherwise, all or any
portion of another legal entity such that either the assets or market value of such Party after the close of such transaction are greater than one hundred thirty-three percent (133%) of the assets or
market value of such Party prior to such transaction. The effective date of such a Change of Control shall be the date of the first transaction in which any of the foregoing events occurs or in which
a Party or third party acquires an option or right to cause any of the foregoing events to occur. 

        12.7    Amendment.    This Agreement may be amended only by a written agreement executed by Xtent and Occam. 

        12.8    Governing Law.    This Agreement shall be governed by, and construed in accordance with, the laws of the State
of California and the United States, as though made and to be fully performed therein without regard to conflicts of laws principles thereof. The Parties agree that any legal or equitable action
arising out of any dispute under this Agreement shall only be commenced in any federal or state court located in the State of California having subject matter jurisdiction over such action and that
any such court shall have jurisdiction over the Parties and venue of the action shall be 

26

 

appropriate
in such court. The Party prevailing in any such action shall be entitled to recover its reasonable attorneys' fees and costs incurred in connection with any such litigation. 

        12.9    Counterparts.    This Agreement may be executed in multiple counterparts, each of which will be deemed an
original but all of which together will constitute one and the same instrument, and all signatures need not appear on any one counterpart. 

        12.10    Interpretation.    The Parties acknowledge and agree that: (a) each Party and its counsel reviewed and
negotiated the terms and provisions of this Agreement and have contributed to its revision; (b) the rule of construction to the effect that any ambiguities are resolved against the drafting
party will not be employed in the interpretation of this Agreement; and (c) the terms and provisions of this Agreement will be construed fairly as to all Parties and not in favor of or against
any Party, regardless of which Party was generally responsible for the preparation of this Agreement. When used in this Agreement, the words "including" or "includes" are deemed to be followed by the
words "without limitation." 

        12.11    Headings.    Any table of contents, title or Article or Section heading is for convenience of reference only
and will not affect the meaning or construction of any of the provisions of this Agreement. 

        12.12    Currency.    Unless otherwise specified in this Agreement, all references to currency, monetary values and
dollars set forth herein will mean United States dollars and all payments hereunder will be made in United States dollars. 

        12.13    Further Assurances.    Occam and Xtent, from time to time after the execution of this Agreement at the
request of the other Party and without further consideration, will execute and deliver further instruments of transfer and assignment (in addition to those specifically contemplated in this Agreement)
and take such other action as such other Party may reasonably request to more effectively fulfill the intents and purposes of this Agreement. 

        12.14    No Third Party Beneficiaries.    Nothing in this Agreement expressed or implied is intended to confer on any
person other than the Parties or their respective Affiliates, representatives, successors and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement. 

        12.15    Waiver.    No delay or omission on the part of either Party in requiring performance by the other Party
hereunder, or in exercising any right hereunder, shall operate as a waiver of any provision hereof or of any right or rights hereunder, and the waiver or omission or delay in requiring performance or
exercising any right hereunder on one occasion shall not be construed as a bar to or waiver of such performance or right, or of any right or remedy under this Agreement, on any future occasion. 

        12.16    Force Majeure.    Neither Party shall be liable for delay or failure in the performance of any of its
obligations under this Agreement if and to the extent such delay or failure is due to circumstances beyond the reasonable control of such Party, including, but not limited to, fires, floods,
explosions, accidents, acts of God, war, riot, strike, lockout or other concerted acts of workers, acts of government; provided, however, that the Party claiming that a force majeure has affected its
performance shall give notice to the other Party within ten (10) days of becoming aware of the occurrence offeree majeure, giving full particulars of the cause or event and the date of first
occurrence thereof. The Party claiming force majeure shall use its best efforts to eliminate or prevent the cause so as to continue performing its obligations under this Agreement as soon as possible. 

        12.17    Independent Contractors.    Occam and Xtent are independent contractors and nothing contained in this
Agreement shall be construed to constitute either party as a partner, joint venturer, co-owner, or employee of the other party, and neither party shall hold itself out as such. Neither
party 

27

 

has
any right or authority to incur, assume or create, in writing or otherwise, any warranty, liability or other obligation of any kind, express or implied, in the name of or on behalf of the other
party. 

        12.18    Guaranty.    Sun hereby irrevocably and unconditionally guarantees to Xtent the full, complete and prompt
performance and observance of all of Occam's duties and obligations under this Agreement, and under all other agreements between Occam and Xtent related to this Agreement or the subject matter
thereof, as and when such duties and obligations may be or become due to Xtent from Occam, including, without limitation, delivery and manufacturing obligations, indemnity obligations, and payment of
all damages, liability, costs, expenses and other amounts that may be payable to Xtent, or recoverable by Xtent, from Occam as a result of this Agreement. In the event that Occam sub licenses,
assigns, contracts, or otherwise transfers any of its obligations under this Agreement to an Affiliate or other entity under the ownership or control of Sun, Sun further unconditionally guarantees the
performance of such obligations by such Affiliate and payment of all damages, liability, costs, expenses and other amounts that may be payable to Xtent, or recoverable by Xtent, from such Affiliate or
entity as a result of this Agreement. The foregoing is a continuing, irrevocable guaranty that remains in full force and effect for all such duties and obligations, and claims based thereon, whenever
arising, until the expiration of such duties and obligations. 

[Signature
page follows] 

28

        IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed by their duly authorized representatives as of the date set forth above. 

	 	 	XTENT, INC.
	

 	
 	

By:	

/s/ Hank Plain
 Hank Plain
	

 	
 	

Its: Chief Executive Officer
	

 	
 	

OCCAM INTERNATIONAL B.V.
	

 	
 	

By:	

/s/ Jeffrey Jump
 Jeffrey Jump
	

 	
 	

Its: Managing Director
	

 	
 	

SUNBIOMEDICAL, LTD.
	

 	
 	

By:	

/s/ Yoh-Chie Lu
 Yoh-Chie Lu
	

 	
 	

Its: Chief Executive Officer

 
 

EXHIBIT 1.14
  
    LICENSED PATENTS    
    

[*] 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 

        [*]

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

2

 
 

EXHIBIT 1.19
  
    OCCAM'S DRUG/POLYMER COMPOSITE FORMULATION    
    

        [*] 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 
 

EXHIBIT 1.22
  
    OCCAM'S LUBRICIOUS COATING    
    

        [*] 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 
 

EXHIBIT 12.3    
    
    PRESS RELEASE    
    

        [To be added upon completion of a mutually agreeable press release] 

 
 

XTENT, INC.
  
    FIRST AMENDMENT TO LICENSE AGREEMENT    
    

        This First Amendment to the License Agreement (the "Amendment") dated February 9, 2005 (the
"Effective Date") is made to the License Agreement dated May 4, 2004 (the "License Agreement"),
by and among Xtent, Inc., a Delaware corporation (the "Company"), Sun Biomedical Ltd., a Bermuda corporation
("Sun") and Occam International, B.V., a Netherlands corporation ("Occam"). All defined terms used in
this Amendment not otherwise defined herein shall have the same meaning as set forth in the License Agreement. 

        WHEREAS,
pursuant to Section 7.7 of the License Agreement, Occam has the right to participate up to its pro rata share in any financing or offering of the Company's equity or debt
securities (the "Participation Right"); 

        WHEREAS,
Occam desires to purchase up to 144,711 shares of the Company's Series C Preferred Stock pursuant to the Series C/C-1 Preferred Stock Purchase
Agreement dated February 9, 2005 (the "Purchase Agreement") at a subsequent closing (the
"Closing"); 

        WHEREAS,
pursuant to Section 4 of the Amended and Restated Investors' Rights Agreement dated February 9, 2005 by and between the Company and certain investors (the
"Rights Agreement"), certain investors have the right of first refusal (the "First Refusal Rights") to
purchase its pro rata share with respect to issuances of New Securities (as defined in the Rights Agreement) by the Company; and 

        WHEREAS,
Xtent and Occam desire to amend Section 7.7 of the License Agreement to modify Occam's Participation Right such that Occam's right of first refusal to purchase its pro
rata share of certain securities of the Company is subject to standard exceptions contained in the Rights Agreement. 

        NOW
THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree to amend the License Agreement as follows: 

        I.    Amendment.    

        A.    Section 7.7
of the License Agreement is hereby amended to read as follows: 

        "7.7    Right of First Refusal.    Xtent hereby grants to Occam the right of first refusal to purchase a pro rata
share of New Securities (as defined in this Section 7.7) which Xtent may, from time to time after the date hereof, propose to sell and issue.
Occam's pro rata share, for purposes of this right of first refusal, is the ratio of the number of shares of Common Stock of Xtent owned by Occam immediately prior to the issuance of New Securities,
assuming full conversion of any Preferred Stock held by Occam and exercise of any option or warrant held by Occam, to the total number of shares of Common Stock of Xtent outstanding immediately prior
to the issuance of New Securities, assuming full conversion of all Preferred Stock outstanding and exercise of all outstanding convertible securities, rights, options and warrants to acquire Common
Stock of Xtent. This right of first refusal shall be subject to the following provisions:(a) "New Securities" shall mean any capital stock (including Common Stock and/or Preferred Stock) of Xtent
whether now authorized or not, and rights, options or warrants to purchase such capital stock, and securities of any type whatsoever that are, or may become, convertible into capital stock; provided
that the term "New Securities" does not include: 

        (i)    Series C
Preferred Stock purchased under the Series C/C-1 Preferred Stock Purchase Agreement dated February 9, 2005 entered into by
Xtent and certain investors (the "Purchase Agreement") or Series C-1 Preferred Stock sold or issued in exchange for Series C Preferred Stock pursuant to the Purchase
Agreement; 

        (ii)   shares
of Common Stock issued or issuable upon conversion of the Preferred Stock; 

        (iii)  shares
of Common Stock issued or issuable to officers, directors and employees of, or consultants to, Xtent pursuant to stock grants, option plans, purchase plans or
other employee stock incentive programs or arrangements, in each case approved by the Board of Directors, 

including
the approval of at least two (2) of the members of the Board of Directors elected pursuant to Sections 1(b), 1(c), 1(d) and 1(e) of that certain Amended and Restated Voting Agreement
entered into by Xtent and certain holders of Xtent's voting securities dated February 9, 2005 (known hereinafter as the "Preferred Directors"), or upon exercise of options or warrants granted
to such parties pursuant to any such plan or arrangement; 

        (iv)  shares
of Common Stock issued upon the exercise or conversion of options or convertible securities of Xtent pursuant to the terms of such options or convertible
securities as outstanding and in existence as of the date of this Agreement, as amended; 

        (v)   shares
of Common Stock issued or issuable as a dividend or distribution on the Preferred Stock or pursuant to any event for which adjustment is made pursuant to
Article IV paragraph 4(e), 4(f) or 4(g) of the Certificate of Incorporation of Xtent; 

        (vi)  shares
of Common Stock issued in connection with Xtent's first sale of its Common Stock in a bona fide, firm commitment underwriting pursuant to a registration
statement filed with the Securities Exchange Commission, with aggregate net proceeds to Xtent of at least $50,000,000 (after deduction for underwriting discounts, commissions and expenses, if any) and
a per share price to the public of at least $8.00 (a "Qualified IPO"); 

        (vii) shares
of capital stock, or options, or warrants to purchase shares of capital stock issued or issuable pursuant to the acquisition of another corporation by Xtent by
merger, purchase of substantially all of the assets or other reorganization or pursuant to a joint venture agreement, other than a joint venture agreement principally for the purpose of an equity
financing, provided, that in each case, such issuances are approved by the Board of Directors, including the approval of at least two (2) of the Preferred Directors; 

        (viii) shares
of capital stock, or options, or warrants to purchase shares of capital stock issued or issuable to banks, equipment lessors or other financial institutions
pursuant to a commercial leasing or debt financing transaction or similar transaction approved by the Board of Directors, including the approval of at least two (2) of the Preferred Directors; 

        (ix)  shares
of capital stock determined by the Board of Directors, including the approval of at least two (2) of the Preferred Directors, to be exempt from the
definition of New Securities and issued or issuable in connecting with sponsored research, collaboration, technology license, development, OEM, marketing or other similar agreements or strategic
partnerships, in each case approved by the Board of Directors, including the approval of at least two (2) of the Preferred Directors; 

        (x)   shares
of Common Stock issued to suppliers or third party service providers in connection with the provision of goods or services pursuant to transaction approved by the
Board of Directors, including the approval of at least two (2) of the Preferred Directors; 

        (xi)  shares
of Common Stock or Preferred Stock of Xtent which are otherwise excluded by the affirmative vote or consent of the holders of at least sixty percent (60%) of the
Preferred Stock then outstanding; and 

        (xii) any
right, option or warrant to acquire any security convertible into the securities excluded from the definition of New Securities pursuant to subsections
(i) through (xi) above. 

        (b)   In
the event Xtent proposes to undertake an issuance of New Securities, it shall give Occam written notice of its intention, describing the type of New Securities, and
their price and the general terms upon which Xtent proposes to issue the same. Occam shall have ten (10) days after any such notice is mailed or delivered to agree to purchase it's pro rata
share of such New Securities for the price and upon the terms specified in the notice by giving written notice to Xtent and stating therein the quantity of New Securities to be purchased. 

        (c)   The
right of first refusal set forth in this Section 7.7 shall terminate and be of no further force and effect
immediately before the earlier of (i) the closing of Xtent's Qualified IPO or (ii) a Change of 

Control.
A "Change of Control" for purposes of this Section 7.7(c) shall mean (x) a consolidation or merger with or into another corporation as a result of which the stockholders of
Xtent will own less than fifty percent (50%) of the outstanding stock of the surviving corporation or (y) a sale, lease or other conveyance of all or substantially all of the assets of Xtent,
provided that in the case of either (x) or (y), the stockholders receive upon such transaction cash and/or unrestricted securities that are actively traded on a National Securities Exchange or
the Nasdaq Stock Market." 

        II.    Miscellaneous.    

        A.    Waiver.    Effective as of June 22, 2004, Occam hereby waives any rights it may
have pursuant to Section 7.7 of the License Agreement to purchase its pro rata share of options granted to certain employees and consultants of the Company to purchase an aggregate of 444,500,
86,000, 1,164,000, 14,000 and 1,087,280 shares of the Company's Common Stock pursuant to the Company's 2002 Stock Plan on June 22, 2004, August 24, 2004, October 14, 2004,
December 7, 2004 and February 1, 2005, respectively. 

        B.    Governing Law.    This Amendment shall be governed by and construed and interpreted
under the laws of the State of California without reference to conflicts of law principles. 

        C.    Modification.    This Amendment may not be altered, amended or modified in any way
except by written consent of the Company and Occam. Waiver of any term or provision of this Amendment or forbearance to enforce any term or provision by any party shall not constitute a waiver as to
any subsequent breach or failure of the same term or provision or a waiver of any other term or provision of this Amendment. 

        D.    Full Force and Effect.    Except as amended hereby, the License Agreement shall remain
in full force and effect. 

        E.    Counterparts.    This Amendment may be executed in counterparts, each of which shall be
declared an original, but all of which together shall constitute one and the same instrument. 

        [Remainder
of the page intentionally left blank] 

        This
Amendment to the License Agreement is executed as of the Effective Date. 

	 	 	XTENT, INC.
	

 	
 	

By:	

/s/ Gregory Casciaro
 Gregory Casciaro

President and Chief Executive Officer
	

 	
 	
OCCAM INTERNATIONAL B.V.
	

 	
 	

By:	

/s/ Jeffrey B. Jump

	 	 	Name:	Jeffrey B. Jump

	 	 	Title:	Managing Director

        [Signature
Page to Xtent, Inc. Amendment to License Agreement] 

QuickLinks

ARTICLE VI REPRESENTATIONS AND WARRANTIES OF OCCAM

ARTICLE VII REPRESENTATIONS AND WARRANTIES OFXTENT

ARTICLE VIII RIGHTS AND OBLIGATIONS SUBSEQUENT TO EXECUTION OF AGREEMENT

ARTICLE IX INDEMNIFICATION

ARTICLE X CONFIDENTIALITY

ARTICLE XI TERM AND TERMINATION OF AGREEMENT

ARTICLE XII MISCELLANEOUS

EXHIBIT 1.14 LICENSED PATENTS

EXHIBIT 1.19 OCCAM'S DRUG/POLYMER COMPOSITE FORMULATION

EXHIBIT 1.22 OCCAM'S LUBRICIOUS COATING

EXHIBIT 12.3 PRESS RELEASE

XTENT, INC. FIRST AMENDMENT TO LICENSE AGREEMENTQuickLinks
 -- Click here to rapidly navigate through this document

Exhibit 10.8  

 
 

MASTER LICENSE AGREEMENT    
    

        THIS AGREEMENT is by and between SurModics, Inc., a corporation of the State of Minnesota, which has an office at 9924 West 74th Street, Eden Prairie, MN
55344 (hereinafter referred to as SURMODICS), and Xtent, Inc., a Delaware corporation, which has an office at 604-D Fifth Avenue,
Redwood City, CA 94063 (hereinafter referred to as XTENT). 

        WHEREAS,
SURMODICS is engaged in biological, chemical and technical research and has developed a body of technology and know-how, including reagents, processes, and devices
which the parties believe will improve the performance of various products and processes of XTENT. 

        WHEREAS,
the technology of SURMODICS includes confidential information (including trade secrets and other know-how) which is proprietary to SURMODICS and SURMODICS is in the
process of securing patent coverage for certain items of its technology, and continues to maintain the confidentiality of other portions of its technology. 

        WHEREAS,
XTENT and SURMODICS are parties to a Mutual Confidential Disclosure Agreement dated July 24, 2002 ("Prior Disclosure Agreement"); 

        WHEREAS,
XTENT may desire to acquire additional licenses under SURMODICS' know-how and patent rights, such licenses to be added to this Master Agreement; 

        NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth below and for other good and valuable consideration of which receipt is acknowledged, the parties agree
as follows: 

        1.    DEFINITIONS    

        The
following definitions apply to this Agreement and to all addenda thereto: 

        (a)   "Affiliate"
means any entity which owns at least 50% of, is at least 50% owned by, or is under common (at least 50%) ownership with XTENT. 

        (b)   "Effective
Date" means the date upon which this Agreement is fully executed. 

        (c)   "Know-how"
means SURMODICS' trade secrets and other technical information relating to the surface treatment of medical devices and which SURMODICS has the
right to transmit to others. Know-how includes but is not limited to information contained in pending patent applications of Patent Rights and information that is Confidential Information
as defined in Paragraph 13. 

        (d)   "Licensed
Products" means each of the separately sold Medical Products specifically described in Attachment B1, B2, and so forth, and which: 

        (i)    but
for the license granted herein the manufacture, use or sale would infringe (or a surface treatment process employed to produce a product or a reagent used in such
process would infringe) any claim of Patent Rights, or 

        (ii)   are
produced through the use of SURMODICS' Know-how. 

        (e)   "Licensed
Product Effective Date" for each license granted herein shall mean the date specified in the respective Attachment B1, B2, and so forth. 

        (f)    "Manufacturer"
means a non-Affiliate third party which manufactures Licensed Products for XTENT pursuant to a separate agreement with XTENT and subject to
the execution by the Manufacturer and SURMODICS of the document entitled "Manufacturer Agreement and SurModics' Consent" attached hereto as Attachment C. 

        (g)   "Medical
Products" means products that are specifically defined in Attachment B1, B2, and so forth. 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

 

        (h)   "Net
Sales" means the total actual billing for sales of Licensed Products, less the following deductions where they are applicable with respect to such billings and when
separately shown on invoices: 

        (i)    discounts
actually allowed and taken; 

        (ii)   any
customs, duties, taxes or other governmental excise or charge upon or measured by the production, sale, transportation, delivery or use of Licensed Product and
actually paid by XTENT; 

        (iii)  amounts
allowed or credited on rejections or returns; 

        (iv)  transportation
or insurance charges prepaid or allowed. 

        Notwithstanding
the above, if any Licensed Product is sold both separately and as an integral part of a combination product containing one or more integral components in addition to that
Licensed Product, then Net Sales of that Licensed Product resulting from sales of that combination product will be calculated by multiplying the Net Sales for the combination product as calculated
above by the fraction A/B, where A is the invoice price of the Licensed Product as sold separately and B is the invoice price of the combination product. 

        A
Licensed Product shall be considered sold when it is shipped or when it is invoiced, whichever is earlier. To assure SURMODICS the full royalty payment contemplated in this Agreement,
XTENT agrees that in the event any Licensed Product is sold to an Affiliate for purposes of resale, Earned Royalties for that Licensed Product shall be computed upon the selling price at which such
Licensed Product would ordinarily be sold to a non-Affiliate, rather than on the selling price of XTENT to the Affiliate. 

        (i)    "Patent
Rights" means the patent application(s) and patent(s) identified in Attachment A hereof, together with all foreign counterparts, divisions, and continuation
applications based thereon, any patent issuing on any of said applications, and any reissues or extensions based on any of such patents. 

        (j)    "Valid
Claim" means a claim of Patent Rights that has not been held invalid by a court of competent jurisdiction beyond possibility of appeal. 

        2.    LICENSE    

        (a)   With
respect to the Licensed Product defined in each of Attachments B1, B2, and so forth, SURMODICS grants to XTENT, a separate worldwide license under SURMODICS' Patent
Rights and Know-how to make, have made for it only by a properly sublicensed Manufacturer as set forth herein, use, import, and sell that Licensed Product. The license granted herein is
expressly limited to the specific Licensed Products defined herein, and does not include the right to sublicense except as set forth in Paragraph 2(b) below. All licenses granted by SURMODICS
to XTENT under this Agreement are non-exclusive unless specifically stated otherwise for a particular Licensed Product in an Attachment B1, B2, and so forth. Additional terms of each
license are set out in the respective Attachments B1, B2, and so forth. To the extent of any inconsistency between the terms set forth in the text of this Agreement and the terms set forth in
Attachments B1, B2, and so forth, the terms set forth in the text of each Attachment B shall be controlling with respect to the Licensed Product defined in each Attachment B; however, the terms set
forth in the text of this Agreement shall otherwise control. Each such license shall be effective as of its Licensed Product Effective Date. 

        (b)   All
sublicenses by XTENT to a Manufacturer shall be subject to the following terms and conditions. No sublicense shall be effective unless and until the document
entitled "Manufacturer Agreement and SurModics' Consent" attached as Exhibit C has been executed by the 

2

 

Manufacturer,
delivered to SURMODICS, and signed by SURMODICS. XTENT shall be responsible for and hereby guarantees the performance to SURMODICS by each Manufacturer of all of the sublicensee
obligations provided herein. Each sublicense to a Manufacturer shall terminate automatically and without notice at such time as the separate agreement between XTENT and the Manufacturer expires or is
terminated. Each sublicense to a Manufacturer shall terminate automatically without notice upon termination or expiration of this Agreement or the relevant license hereunder, and XTENT's agreement
with the Manufacturer must so provide. 

        (i)    The
following non-Affiliate third party has been identified by XTENT as a possible Manufacturer: Invatec, S.r.l., Via della Stella 62/64 , 25062 Concesio
(BS), Italy "(Invatec"). If XTENT and Invatec agree on terms by which Invatec should manufacture Licensed Products for XTENT, and if Invatec signs and delivers to SURMODICS the document entitled
"Manufacturer Agreement and SurModics' Consent" attached as Exhibit C, SURMODICS will not object to Invatec as a Manufacturer for XTENT. 

        (ii)   The
licenses granted to XTENT include the right for XTENT to appoint third party distributors of finished Licensed Products which such distributors purchase from XTENT.
A properly licensed Manufacturer may also be appointed as a distributor of Licensed Products at XTENT's discretion. 

        (c)   Subject
to the limited license granted herein, SURMODICS shall retain all rights to the Patent Rights and Know-how. SURMODICS shall retain the right to use
Patent Rights and Know-how for its own research purposes. 

        (d)   Subject
to applicable confidentiality requirements, XTENT shall notify SURMODICS, in advance and in writing, of the location of the production of a Licensed Product or
any new location to be used for the production of a Licensed Product. 

        (e)   In
the event any governmental agency in a jurisdiction materially alters or hinders or prevents enforcement of the terms or provisions of any license granted herein,
SURMODICS may, at its sole discretion, immediately terminate that license with respect to such jurisdiction. 

        3.    LICENSE FEES    

        For
each license granted by SURMODICS, XTENT shall pay License Fees to SURMODICS as set out in the respective Attachment B1, B2, and so forth. 

        4.    ROYALTIES    

        For
each license granted herein, XTENT shall pay to SURMODICS a royalty for each quarter calendar year during the term of this License Agreement which will be the greater of the
royalties of Paragraphs 4(a) or 4(b). 

        (a)   Earned
Royalties shall be calculated as provided for in the respective Attachment B1, B2, and so forth. No more than one Earned Royalty shall be paid by XTENT for any
Licensed Product. However, if any Licensed Product is covered by more than one Attachment B1, B2, and so forth, then the Earned Royalty rate shall be the highest rate specified for such Licensed
Product. 

        (b)   Minimum
Royalties shall be paid for each Licensed Product as provided for in the respective Attachment B1, B2, and so forth. 

        5.    ROYALTY PAYMENTS, REPORTS, RECORDS    

        (a)   During
the term of this Agreement, and for each license granted hereunder, XTENT will make written reports and payments to SURMODICS within thirty (30) days after
the last day of each calendar quarter ending March 3 1, June 30, September 30, and December 31. Each such 

3

 

report
shall state the Net Sales, unit volumes, Earned Royalty, corrections of error in prior royalty payments, and data and calculations used by XTENT to determine such payments for each of the
licenses corresponding to the respective Attachments B1, B2, and so forth. Each report shall be accompanied by payment in full of the royalty due SURMODICS for that quarter. The December 31
quarterly report shall also include a summary forecast of projected sales of Licensed Products and a nonbinding forecast of reagent usage for the next calendar year. 

        (b)   XTENT
will maintain, for a period of three (3) years following each sale of Licensed Product, true and accurate records supporting the reports and payments made
under this Agreement. SURMODICS shall have the right to carry out an audit of such records no more frequently than once per calendar year through a certified public accountant of its choice. Such
accountant shall have reasonable access to XTENT's offices and the relevant records, files and books of account, and such accountant shall have
the right to examine any other records reasonably necessary to determine the accuracy of the calculations provided by XTENT under Paragraph 5(a). Such accountant may not have such access unless
and until such accountant signs a non-disclosure agreement acceptable to XTENT. Such audit shall be at SURMODICS' expense except that if an underpayment error is found for any twelve month
period that exceeds 5% of the payment made to SURMODICS for that period, then XTENT will bear the reasonable cost of such audit. 

        (c)   All
royalties on sales of each Licensed Product to be paid to SURMODICS by XTENT under this Agreement shall be paid in U.S. Dollars to SURMODICS in the United States.
For the purpose of calculating Earned Royalties on sales outside the United States for any calendar quarter, XTENT shall utilize the average rate of exchange on the last business day of that calendar
quarter as quoted in the Wall Street Journal. 

        (d)   Any
sum required under U.S. tax laws (or the tax laws of any other government) to be withheld by XTENT from payment for the account of SURMODICS may be deducted from
amounts due hereunder and shall be promptly paid by XTENT for and on behalf of SURMODICS to the appropriate tax authorities, and XTENT shall furnish SURMODICS with official tax receipts or other
appropriate evidence issued by the appropriate tax authorities sufficient to enable SURMODICS to support a claim for income tax credit in respect to any sum so withheld. 

        6.    TECHNICAL SUPPORT FEES    

        XTENT
agrees to pay SURMODICS for technical support that SURMODICS' provides to XTENT for XTENT's products ("Technical Support Fees") if such technical support is provided to XTENT under
a mutually agreed upon written project plan. SURMODICS shall charge XTENT for such support at SURMODICS' then-standard rates. [*] SURMODICS may change its Technical
Support Fees with thirty (30) days advance written notice to XTENT. SURMODICS' standard hourly rate includes direct labor costs plus direct labor overhead. SURMODICS shall additionally charge
XTENT for direct materials consumed in accordance with the mutually agreed project plan plus direct materials overhead of fifteen percent (15%). Direct materials may include expenses such as travel
and special equipment. SURMODICS shall invoice XTENT monthly for such Technical Support Fees, and XTENT shall make payment to SURMODICS within thirty (30) days thereafter. 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

4

 

        7.    TERM    

        (a)   Unless
earlier terminated, each license herein granted shall begin upon the Licensed Product Effective Date set out in the respective Attachment B1, B2, and so forth,
and shall extend for each Licensed Product so licensed until expiration of the last to expire patent of Patent Rights that covers that product or for a period of fifteen (15) years following
the first bona fide commercial sale of such Licensed Product, whichever is longer. 

        (b)   Upon
expiration of the full term of the license granted herein for any Licensed Product, and upon full payment by XTENT to SURMODICS of any monies due under this
Agreement, the license with respect to Know-how licensed herein for that Licensed Product shall be deemed paid up. 

        8.    PATENTS    

        (a)   XTENT
shall see to it that all Licensed Products sold by XTENT shall be appropriately marked with the applicable patent numbers, in conformity with applicable law. 

        (b)   SURMODICS
recognizes that it is an objective of XTENT to obtain patents on technology that XTENT develops. XTENT recognizes that a vital part of SURMODICS' business
includes licensing SURMODICS' technology to others under SURMODICS' patents and know-how to make, use, and sell products, and that it is an objective of SURMODICS to enable its present and
future licensees to exploit patent licenses from SURMODICS to produce and sell products without interference from any patent that XTENT might obtain. A purpose of this Paragraph 8 is to
establish a system under which each party may accomplish its respective objective. 

        (c)   Title
to all developed technology which is conceived or first reduced to practice during the term of this Agreement and which is solely an invention of employees or
agents of SURMODICS shall be in SURMODICS. SURMODICS shall have the right to determine whether patent or other intellectual property protection will be sought for any such invention and shall be
solely responsible for all costs associated with obtaining and maintaining such patent or other intellectual property protection. 

        (d)   Title
to all developed technology which is conceived or first reduced to practice during the term of this Agreement and which is solely an invention of employees or
agents of XTENT shall be in XTENT. XTENT shall have the right to determine whether patent or other intellectual property protection will be sought for any such invention and shall be solely
responsible for all costs associated with obtaining and maintaining such patent or other intellectual property protection. 

        (e)   "SURMODICS'
Technology" means (i) chemical species having latent reactive chemical groups for bonding synthetic polymers and/or biologically active materials onto
surfaces, into matrices and to other molecules, (ii) processes and methods used to apply or place synthetic polymers and/or biologically active materials onto surfaces, into matrices and to
other molecules, and (iii) processes and methods used to manufacture and test such chemical species. 

        (f)    "XTENT/SURMODICS
Technology Patent" means an issued patent which contains a claim that (A) claims an invention conceived or first reduced to practice during the
term of this Agreement solely by one or more XTENT employees or others who are required to assign inventions to XTENT, and (B) is drawn to an
invention for SURMODICS' Technology, or its use, or products or processes arising from such use. Any claim that meets the criteria of both (A) and 

5

 

(B) above
shall be considered a "XTENT/SURMODICS Technology Patent Claim". With respect to a XTENT/SURMODICS Technology Patent: 

        (i)    Determination of Rights.    At such time as SURMODICS becomes aware of a patent that may reasonably be
construed as a XTENT/SURMODICS Technology Patent, SURMODICS will send a written notice to XTENT identifying the patent in question and requesting a review of such patent by the parties to determine
(A) if such patent contains a XTENT/SURMODICS Technology Patent Claim, and, if so, (B) whether SURMODICS or a SURMODICS licensee had substantial knowledge of the thus claimed invention
as of the date of its conception by XTENT, and (C) whether the alleged XTENT/SURMODICS Technology Patent contained any SURMODICS' Confidential Information at the time of filing. As used in this
Paragraph 8(f), "substantial knowledge" shall mean, as demonstrated by written records, the possession of knowledge which, if available as prior art to the claimed invention, would render the
invention so claimed unpatentable under U.S. patent laws. XTENT will not bring or maintain any legal action against SURMODICS or a SURMODICS licensee alleging infringement of such XTENT/SURMODICS
Technology Patent until issues (A), (B), and (C) of this paragraph have been determined and agreed upon between XTENT and SURMODICS. In the event the parties can not determine and agree on such
issues, either party may seek resolution through arbitration under Paragraph 24. 

        (ii)    Grant of License.    SURMODICS shall have and is hereby granted a noncancelable, nonexclusive, worldwide
license, with the right to sublicense, to make, have made for it, use and sell products and processes covered by each XTENT/SURMODICS Technology Patent Claim, in conjunction with the use of SURMODICS'
Technology, but only to the extent that (A) such product or its manufacture or use, as of the date of issuance of such XTENT/SURMODICS Technology Patent, is also covered by any claim
of any patent that SURMODICS has the right to license to others or may have licensed to others, or (B) SURMODICS can demonstrate that SURMODICS or a SURMODICS licensee had substantial knowledge
of the claimed invention as of the date of its conception by XTENT. 

        If
SURMODICS or a SURMODICS licensee did not have substantial knowledge of the invention of an XTENT/SURMODICS Technology Patent Claim as of the date of conception of the invention so
claimed, SURMODICS' right to sublicense shall exclude the right to manufacture, use or sell Medical Products as "Medical Products" are defined in this Agreement at the date of issuance of that
XTENT/SURMODICS Technology Patent. Notwithstanding the foregoing, in the event the application for the XTENT/SURMODICS Technology Patent is filed containing SURMODICS' Confidential Information,
without the advance written permission of SURMODICS, SURMODICS' right to sublicense shall not exclude the right to manufacture, use or sell Medical Products as "Medical Products" are defined in this
Agreement. 

        (iii)    Royalties Payable by SURMODICS.    In return for the license granted under Paragraph 8(f)(ii),
SURMODICS will pay XTENT a total of five percent (5%) of the royalties (regardless of the number of XTENT/SURMODICS Technology Patent Claims that are licensed to SURMODICS or the number of licenses
involved) that SURMODICS receives from its sublicensees based on sales by its sublicensees of products that but for such sublicenses would infringe any XTENT/SURMODICS Technology Patent Claim. 

        (iv)  If
SURMODICS or a SURMODICS licensee had substantial knowledge of the invention of a XTENT/SURMODICS Technology Patent Claim as of the date of conception of the
invention, or the application for the XTENT/SURMODICS Technology Patent is filed containing SURMODICS' Confidential Information, then the license granted to SURMODICS for such XTENT/SURMODICS
Technology Patent Claim shall be considered paid-up. 

6

 

        (g)   With
respect to Joint Inventions (inventions made jointly by one or more employees of each party operating under this Agreement), the parties agree that mutually
acceptable patent counsel shall be retained at the mutual cost and expense of the parties to render an opinion as to the patentability thereof and to prepare, file, and prosecute such patent
applications as may reasonably be required to provide protection for such inventions. The joint inventors each shall be required to assign their Joint Inventions, including all patent applications
therefore and the resulting patents, if any ("Joint Patents") to SURMODICS. SURMODICS shall immediately reassign to XTENT an undivided one-half interest to the Joint Inventions, including
all patent applications thereof and resulting Joint Patents. Either party may choose at any time, upon written notice to the other, to forego any further expense of obtaining or maintaining a Joint
Patent for a Joint Invention, and will offer to assign such Joint Invention, patent application and/or Joint Patent to the other. If the prospective assignee party accepts such offer, thereafter it
shall at its own expense prepare and file the necessary
assignments and shall be solely responsible for obtaining and/or maintaining Joint Patent(s) for such Joint Invention. With respect to Joint Patents: 

        (i)    Except
as provided in Paragraphs 8(g)(iii) and 8(g)(iv) below, each party shall have the right to operate under Joint Patents and grant nonexclusive
licenses to others, as they may desire without accounting to the other party. 

        (ii)   Should
either party choose to bring suit for infringement by a third party of any Joint Patents, the party bringing suit shall have the right to join the other party as
a party to the suit to the extent required by law. 

        (iii)  SURMODICS
agrees it will not grant licenses for the manufacture, use, or sale of any products to the extent that the products are Medical Products as defined in any
Attachment B of this Agreement. 

        (iv)  XTENT
agrees it will not grant any licenses for the manufacture, use, or sale of any products relating to chemical species having photo-reactive or other latent
reactive groups for the purpose of bonding chemicals such as synthetic polymers and biologically active materials onto surfaces or into matrices or to other molecules, the use of such chemical
species, or the products resulting from such use. 

        (h)   The
parties agree to execute and exchange upon request such documents as may be necessary or desirable to carry out the provisions of Paragraphs 8(f) and 8(g). 

        (i)    Other
than as set forth herein, nothing in this Agreement shall be construed as granting either party any rights under or to any patents, know-how or other
rights of the other. 

        (j)    To
the extent that any dispute arises with respect to patents under this Paragraph 8, the disputing party shall promptly inform the other party of the nature of
the dispute and the provisions of Paragraph 24 shall apply. The parties shall execute appropriate amendments or assignment for the application if necessary to effectuate the resolution of the
dispute. 

7

 

        9.    ALLOCATION OF ROYALTIES    

        (a)   The
Earned Royalty rate with respect to any Licensed Product shall be prospectively reduced to [*] and the respective Attachments B1, B2, and so
forth, to the extent that and during the term that neither the manufacture, nor the use, nor the sale of that specific Licensed Product (or a surface treatment process or a reagent used in such
process) is covered by any Valid Claim of Patent Rights. The provisions of this Paragraph 9 shall not apply to payment of Minimum Royalties as provided in Paragraph 4(b) and the
respective Attachments B1, B2, and so forth. 

        (b)   If
XTENT is required to pay a royalty to a non-Affiliate third party solely as a result of XTENT's use of SURMODICS' Patent Rights or Know-how
licensed herein, then XTENT shall have the right to prospectively reduce the Earned Royalty calculated under Paragraph 4(a) [*] for the period for which XTENT takes a
reduction in Earned Royalties payable to SURMODICS; provided, however, that (i) XTENT shall not withhold [*] of the total Earned Royalties due to SURMODICS for any
calendar quarter, and (ii) the Earned Royalty payable to SURMODICS shall never be [*] of Licensed Products. 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

8

   
        10.    TERMINATION    

        (a)   For
each license granted herein: 

        (i)    XTENT
shall have the right to terminate each license granted with respect to each Attachment B1, B2, and so forth, under which such license was granted, but only in its
entirety, at any time upon ninety (90) days advance written notice. Upon termination of any such license, XTENT shall have no further rights under Patent Rights or Know-how with
respect to the Licensed Product of that license. However, XTENT shall be allowed to sell any inventory of Licensed Products existing at the time of termination for a period of six (6) months
thereafter (thereafter destroying any remaining inventory), provided XTENT accounts for such sales of inventory and pays SURMODICS the appropriate Earned Royalty for such sales as set out in
Paragraph 4(a) of this Agreement. 

        (ii)   SURMODICS
may terminate this Agreement in whole or with respect to any license granted herein upon thirty (30) days written notice for any material breach or
default by XTENT, or a Manufacturer sublicensed by XTENT, including without limitation, failure to comply with the confidentiality provisions of Paragraph 13, failure to make reports and
payments when due, failure to pay Minimum Royalties, and withholding or notice of intent to withhold any royalties provided for in this Agreement. Said termination under this
Paragraph 10(a)(ii) shall become effective thirty (30) days after the date of such notice unless during that period XTENT shall first cure such breach or default. 

        (iii)  Upon
termination of any license under any of the provisions of this Paragraph 10, but subject to the provisions of Paragraph 10(a)(i), referring to the
sale of inventory, XTENT shall cease making, having made for it, using, importing and selling the Licensed Products of such license that are produced through the use of SURMODICS'
Know-how. SURMODICS shall have the right to seek equitable relief to enforce the provisions of this Paragraph 10(a)(iii). 

        (b)   Either
party may terminate this Agreement if the other party hereto is involved in insolvency, dissolution, bankruptcy or receivership proceedings affecting the
operation of its business. 

        (c)   If
XTENT fails to initiate bona fide commercial sales of any Licensed Product by the date set out for that Licensed Product in the respective Attachment B1, B2, and so
forth, SURMODICS may terminate the license for that Licensed Product upon thirty (30) days written notice at any time prior to the date XTENT begins bona fide commercial sales of that Licensed
Product. However, if
SURMODICS (i) receives notice from XTENT during such thirty day period that states that XTENT has initiated bona fide commercial sales of such Licensed Product, and (ii) XTENT provides
with such notice reasonable documentary evidence that XTENT has begun commercial sales of such Licensed Product, then SURMODICS' termination under this Paragraph 10(c) shall be of no force or
effect. 

        (d)   In
the event that all licenses granted herein are terminated, SURMODICS shall have the right to terminate this Agreement in its entirety upon written notice. 

        11.    CONTINUING OBLIGATIONS SUBSEQUENT TO TERMINATION    

        (a)   Upon
any termination of this Agreement or any of the licenses granted herein, the following rights and obligations shall continue to the degree necessary to permit their
complete fulfillment or discharge: 

        (i)    SURMODICS'
right to receive and XTENT's obligation to pay royalties to the extent owed; and 

9

 

        (ii)   XTENT's
obligation to maintain records and SURMODICS' right to audit under Paragraph 5, with respect to sales made and to be made under
Paragraph 10(a)(i); and 

        (iii)  Any
cause of action or claim of either party, accrued or to accrue, because of any breach or default by the other party; and 

        (iv)  The
parties' and XTENT's sublicensed Manufacturers' obligations to maintain confidentiality under Paragraph 13; and 

        (v)   XTENT's
and XTENT's sublicensed Manufacturers' obligation to forebear from use of SURMODICS' Know-how as provided in Paragraph 10(a)(iii); and 

        (vi)  The
parties' obligations under Paragraph 8. 

        (b)   Within
thirty (30) days of the date of termination of this Agreement, each party shall return all copies of Confidential Information of the other, except one
archival copy which may be retained by the receiving party for purposes of determining its on-going obligations under this Agreement. 

10

 
[This
page left intentionally blank] 

11

 

        12.    REPRESENTATIONS AND WARRANTIES    

        (a)   Each
party warrants to the other that it has not accepted and will not accept commitments or restrictions with respect to its rights or obligations under this Agreement
which will materially affect the value of the rights granted by SURMODICS nor the obligations undertaken by XTENT. 

        (b)   Each
party warrants to the other that it has the full and unrestricted right to enter into this Agreement and carry out its obligations hereunder. 

        (c)   SURMODICS
represents and warrants that: 

        (i)    as
of the Effective Date, it has no knowledge of any pending or threatened challenge to the validity or enforceability of any Patent Rights in any court; and 

        (ii)   as
of the Effective Date, it has no knowledge of any claim of patent infringement made against it by a third party with respect to the Patent Rights or
Know-how; and 

        (iii)  as
of the Effective Date, the patents and patent applications listed on Attachment A (A) pertain to the surface-coating-component of the Licensed Product
defined in Attachment B1 (related to a stent delivery system coated with the surface-coating-components described in Attachment B I), and that (B) the patents and patent applications listed on
Attachment A constitute all of the current patents and patent applications of SURMODICS having applicability to the stent delivery system described in Attachment B1 when coated with the
surface-coating-components described in Attachment B1. 

        (d)   Except
as expressly stated in Paragraphs 12(a) through (c), nothing in this Agreement shall be construed as: 

        (i)    A
warranty or representation by SURMODICS as to the validity or scope of any Patent Rights; or 

        (ii)   A
warranty or representation that anything made, used, sold, or otherwise disposed of, or any process practiced, under any License granted in this Agreement is or will
be free from infringement of patents of third persons; or 

        (iii)  A
requirement that SURMODICS file any patent application, secure any patent, or maintain any patent in force; or 

        (iv)  An
obligation to bring or prosecute actions or suits against third parties for infringement of any patent; or 

        (v)   An
obligation to furnish any manufacturing or technical information not encompassed within Know-how; or 

        (vi)  Conferring
any right on either party to use in advertising, publicity, or otherwise any trademark or trade name of the other; or 

        (vii) Granting
by implication, estoppel, or otherwise any licenses or rights under patents or other proprietary information of SURMODICS other than those included within
Patent Rights and Know-how. 

        (e)   EXCEPT
AS EXPRESSLY STATED IN PARAGRAPH 25(D), WITH RESPECT TO REAGENTS SUPPLIED AT ANY TIME BY SURMODICS, SURMODICS DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED,
INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, NON-INFRINGEMENT AND FITNESS FOR A PARTICULAR PURPOSE. EXCEPT AS EXPRESSLY STATED IN PARAGRAPH 16(B), WITH RESPECT TO REAGENTS
SUPPLIED BY SURMODICS, SURMODICS SHALL NOT BE 

12

 

LIABLE
FOR INCIDENTAL, CONSEQUENTIAL, SPECIAL, EXTRAORDINARY OR PUNITIVE DAMAGES OF ANY DESCRIPTION, WHETHER FOR DAMAGE TO REPUTATION OR GOODWILL, LOST PROFITS, CLAIMS OF THIRD PARTIES OR OTHERWISE,
WHETHER SUCH ASSERTED DAMAGE PURPORTS TO BE BASED ON WARRANTY OR GUARANTEE, INDEMNITY OR OTHER CONTRACT, CONTRIBUTION, NEGLIGENCE OR OTHER TORT, OR OTHERWISE. 

        (f)    SURMODICS
does not make any representations, extend any warranties of any kind, either express or implied, or assume any responsibilities whatsoever with respect to use,
sale, or other disposition by XTENT or its vendees or transferees of Licensed Products incorporating or made by use of the Patent Rights and Know-how licensed under this Agreement. 

        13.    CONFIDENTIALITY    

        (a)   Each
party agrees to retain in confidence all Know-how and other information received from the other, including without limitation, information required to
be maintained in confidence under prototype development or manufacturing scale-up or post scale-up relationships between the parties ("Confidential Information"), for a period
of fifteen (15) years from the date of disclosure or five (5) years from the date of termination of this Agreement, whichever is longer. Before XTENT discloses any SURMODICS Confidential
Information to any Manufacturer, each Manufacturer to whom any SURMODICS Confidential Information will be disclosed must enter into an agreement with SURMODICS in the form of Attachment C hereto.
Except with respect to an authorized Manufacturer, each party agrees not to disclose any of such Know-how or other information to third parties nor to use the same except in accordance
with this Agreement. Each party's obligation of non-disclosure and non-use shall not apply to information which: 

        (i)    at
the time of its disclosure to the receiving party is available to the public; 

        (ii)   after
disclosure becomes available to the public through no fault of the receiving party; 

        (iii)  the
receiving party can show was in its possession at the time of disclosure to it by the other; 

        (iv)  the
receiving party can show was received by it from a third party without breach of a confidential obligation; or 

        (v)   the
receiving party is compelled by application of law or legal process to divulge, but the receiving party shall provide the disclosing party with advance written
notice before divulging the information to enable the disclosing party to seek a protective order or employ other means to preserve the confidential nature of that information. 

        Even
after any of such information becomes available to the public, each party shall not disclose without the other's prior written approval the fact that such information was furnished
by or originated with the other. 

        (b)   With
respect to any disclosures to a Manufacturer, XTENT shall ensure that the Manufacturer's personnel comply with the confidentiality obligations set forth herein and
XTENT shall be responsible for any breach of those obligations by any of the Manufacturer's personnel. 

        (c)   SURMODICS
shall assist XTENT's regulatory compliance efforts by maintaining and updating a Device Master File with the FDA containing such information about the
SURMODICS surface coating compositions as is finally agreed between SURMODICS and the FDA. At XTENT's request, SURMODICS will provide similar information to regulatory agencies of competent
jurisdiction outside the United States but SURMODICS shall not be obligated to disclose confidential information to any such foreign agencies except to the extent such agencies 

13

 

verify,
to SURMODICS' satisfaction, that such information shall be maintained in secrecy. It is agreed that the information in SURMODICS' Device Master Files with the FDA and information provided to
foreign regulatory agencies is SURMODICS Confidential Information. 

        (d)   For
the purpose of this entire Paragraph 13, Know-how or other information which is specific shall not be deemed to be within any of the specified
exceptions merely because it is embraced by more general information in such exception. In addition, any combination of features shall not be deemed to be within any of the specified exceptions merely
because individual features are in such exception, but only if the combination itself and its principle of operation are in such exception. 

        (e)   Notwithstanding
the above, XTENT specifically agrees that it will not disclose to any Affiliates or other third party any of SURMODICS' Know-how relating to
the manufacture of SURMODICS' chemical reagents, the precise chemical composition of such reagents, how such reagents are tested, how they are quality controlled, and any other specific information
concerning the production of such reagents. 

        (f)    The
provisions of this entire Paragraph 13 shall survive termination of this Agreement for any reason. 

        (g)   Nothing
herein shall in any way affect the obligations of the parties under any prior secrecy or confidential disclosure agreements, including the Prior Disclosure
Agreement, which obligations shall continue in accordance with the terms of each such agreement. However, this Agreement supersedes the Prior Disclosure Agreement between the parties with respect to
disclosures made between the parties after the Effective Date of this Agreement. 

        14.    ASSIGNMENT    

        This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their successors and permitted assigns. Either party may assign its rights and obligations under
this Agreement to a financially responsible third party, but only in connection with a complete transfer to the third party of the business to which this Agreement pertains. The assigning party will
so inform the other party to this Agreement without delay of any assignment made in accordance with the conditions of this Agreement. This Agreement shall not otherwise be assignable by either party
without the prior written consent of the other party. 

        15.    GOVERNMENT APPROVAL    

        XTENT
shall have the sole responsibility, at XTENT's sole expense, for obtaining any government approvals that may be required for the investigation or marketing of Licensed Products. 

        16.    PRODUCT LIABILITY    

        (a)   XTENT
will defend and indemnify SURMODICS against all losses, liabilities, lawsuits, claims, expenses (including attorney's fees), costs, and judgments incurred through
personal injury, property damage, or other claims of third parties, arising from the design, manufacture, use, or sale of Licensed Products. 

        (b)   SURMODICS
will defend and indemnify XTENT against all losses, liabilities, lawsuits, claims, expenses (including attorneys' fees), costs, and judgments incurred in
connection with claims of third parties for personal injury or property damage that arise solely from Reagents (as defined in Paragraph 25) that (i) are sold to XTENT by SURMODICS,
(ii) fail to conform to the specifications for those Reagents contained in master files submitted by SURMODICS to the FDA and maintained by SURMODICS for purposes of premarket approval of
medical devices, and (iii) XTENT is licensed under this Agreement to apply to Medical Products to manufacture Licensed Products therefrom. However, in no event shall SURMODICS' liability to
XTENT under 

14

 

this
Paragraph 16(b) exceed the greater of (i) the amount of SURMODICS' insurance that is applicable to such damage and is paid by SURMODICS' insurer, or (ii) Two Million Dollars
per occurrence or Ten Million Dollars in the aggregate in a calendar year. 

        (c)   A
party seeking indemnification under either Paragraph 16(a) or 16(b) shall promptly notify the party with the indemnity obligation of any such claim. The
indemnifying party shall have sole control of the defense of the claim and all proceedings, but the party seeking indemnity shall provide assistance to defend such claim at the indemnifying party's
expense. In the event of such a lawsuit or claim, the indemnifying party's right to control the litigation, includes, but is not limited to, the right to choose counsel and the right to settle any
such claims or lawsuits, provided such settlement does not (i) admit liability or negligence on the part of the party seeking indemnity, or (ii) in the case of XTENT as the indemnifying
party include (A) a license of SURMODICS' Patent Rights or Know-how to any third party, or (B) an admission of invalidity or unenforceability or any limitation of
enforceability with respect to SURMODICS' Patent Rights or Know-how. 

        17.    NO WAIVER    

        Any
waiver of any term or condition of this Agreement by either party shall not operate as a waiver of any other or continued breach of such term or condition, or any other term or
condition, nor shall any failure to enforce a provision hereof operate as a waiver of such provision or of any other provision hereof. 

        18.    NOTICES    

        All
communications or other notices required or permitted under this Agreement shall be in writing and shall be deemed to be given (i) when personally delivered, (ii) five
days after mailing when mailed by registered or certified mail, postage prepaid, (iii) on the day of sending when sent by facsimile (with recorded transmission completion), or (iv) two
days after sending when sent by reputable express courier, and addressed as follows: 

        If
to SURMODICS: 

License
Administration

SurModics, Inc.

9924 West 74th Street

Eden Prairie, MN 55344

FAX Number: (952) 829-2743 

        If
to XTENT: 

President

Xtent, Inc.

604-D Fifth Avenue

Redwood City, CA 94063

FAX Number: (650) 298-9600 

        Either
party shall have the right to change the person and/or address to which notices hereunder shall be given, by notice to the other party in the manner set out above. 

        19.    CAPTIONS    

        The
captions and headings of this Agreement are for convenience only and shall in no way limit or otherwise affect any of the terms or provisions contained herein. This Agreement shall
be construed without regard to any presumption or other rule requiring construction hereof against the party drafting this Agreement. 

15

  

        20.    FORCE MAJEURE    

        Neither
party shall be liable for failure to perform as required by any provisions of this Agreement where such failure results from a cause beyond such party's reasonable control such
as acts of God, regulation or other acts of civil or military authority, required approval(s) of government bodies, fires, strikes, floods, epidemics, quarantine restrictions, riot, delays in
transportation and inabilities to obtain necessary labor, materials, or manufacturing facilities. In the event of any delay attributable to any of the foregoing causes, the time for performance
affected thereby shall be extended for a period equal to the time lost by reason of such delay. The cumulative effect of all such delays under this Paragraph 20 shall not exceed one
(1) year. 

        21.    NO AGENCY    

        Nothing
in this Agreement authorizes either SURMODICS or XTENT to act as agent for the other as to any matter, or to make any representations to any third party indicating or implying
the existence of any such agency relationship. SURMODICS and XTENT shall each refrain from any such representations. The relationship between SURMODICS and XTENT is that of independent contractors. 

        22.    SEVERABILITY    

        Should
any provision of this Agreement, or the application thereof, to any extent be held invalid or unenforceable, the remainder of this Agreement and the application thereof other than
such invalid or unenforceable provisions shall not be affected thereby and shall continue valid and enforceable to the fullest extent permitted by law or equity. 

        23.    GOVERNING LAW    

        This
Agreement shall for all purposes be governed and interpreted in accordance with the laws of the State of Minnesota, except for its conflict of laws provisions. 

        24.    ARBITRATION    

        (a)   In
the event of any dispute concerning this Agreement, including its interpretation, performance, breach or termination, the procedures of this Paragraph 24 shall
apply; provided, however, that either party shall have the unrestricted right at any time to seek a court injunction prohibiting the other party from making unauthorized disclosure or use of
Confidential Information as provided for in Paragraph 13 or unauthorized use of SURMODICS' Know-how as provided for in Paragraph 10(a)(iii). 

        (b)   Both
parties will use good faith and reasonable efforts to resolve any dispute informally and as soon as practical. If any such dispute is not resolved informally within
a reasonable period, then an officer from each party, having authority to resolve the dispute, will meet at a mutually agreeable time and place to attempt to resolve the dispute. 

        (c)   If
the parties are unable to resolve a dispute as provided immediately above, either party may submit the dispute for resolution by mandatory, binding arbitration in the
city of 

16

 

Denver,
Colorado (or such other place as the parties may mutually agree) under the auspices of the American Arbitration Association under its Commercial Arbitration Rules. Each party shall select one
independent, qualified arbitrator and the two arbitrators so selected shall then select a third arbitrator in accordance with the Commercial Rules. Each party reserves the right to object to any
individual arbitrator (no matter by whom chosen) who has been employed by or affiliated with a competing organization. 

        (d)   The
arbitrators, who shall act by majority vote, shall be empowered to decree any and all relief of an equitable nature, including but not limited to temporary
restraining orders, temporary injunctions, and/or permanent injunctions, and shall also be able to award damages, with or without an accounting of costs. Judgment on the award rendered by the
arbitrator(s) may be entered into any court having jurisdiction thereof. Each party shall bear its own costs and divide other reasonable arbitrator costs equally. 

        25.    TERMS OF ORDERS/REAGENTS    

        (a)   SURMODICS
agrees to supply to XTENT reasonable quantities (taking into consideration XTENT's actual needs for the coating of Medical Products) of the photoreactive
reagents that XTENT
uses in the production of Licensed Products ("Reagents") pursuant to mutually agreed upon purchase orders. SURMODICS shall not unreasonably withhold acceptance of a purchase order. 

        (b)   SURMODICS
will take reasonable steps to adequately stock Reagents. Delivery by SURMODICS of Reagents to Federal Express, or to another reputable carrier in the United
States, shall constitute delivery to XTENT. 

        (c)   SURMODICS
agrees that the prices to XTENT for the Reagents shall be the same as the prices that SURMODICS ordinarily offers to its other clients for equivalent volume
consumption. Each SURMODICS invoice for Reagents shall be payable in full within thirty (30) days after the date of the invoice. 

        (d)   SURMODICS
warrants that each shipment of Reagents supplied to XTENT shall, at the time of shipment, conform to the specifications for those Reagents contained in master
files submitted by SURMODICS to the FDA and maintained by SURMODICS for purposes of premarket approval of medical devices. XTENT shall immediately notify SURMODICS of a claimed breach of the warranty
in this Paragraph 25(d). If SURMODICS confirms that the Reagents fail to meet the warranty in this Paragraph 25(d), SURMODICS' sole warranty obligation, and XTENT's sole warranty remedy,
for the nonconforming shipment of Reagents shall be (i) the replacement of the defective shipment of Reagents, or (ii) at XTENT's option a refund of the price paid by XTENT for the
defective Reagents. XTENT shall provide SURMODICS with whatever evidence XTENT has regarding the condition of the Reagents (including a sample of the Reagents) to enable SURMODICS to determine whether
the Reagents were defective at the time of shipment. 

        (e)   The
terms and conditions in this Agreement, together with additional terms and conditions which may appear in SURMODICS' written acceptance of orders from time to time
shall be the exclusive contract terms between the parties with respect to the purchase of Reagents. In 

17

 

the
event of inconsistencies between the terms of this Agreement and the terms of any order or acceptance document, the terms of this Agreement shall govern. Each party objects to any terms set forth
in orders, acknowledgements, pick slips, or invoices for Reagents which are different from or additional to the provisions of this Agreement, and no such terms shall be binding upon either party
unless such party specifically consents thereto in writing. 

        26.    ENTIRE AGREEMENT    

        This
Agreement, together with all attachments specifically referred to herein, constitutes the entire agreement between the parties with respect to the licenses granted herein, and no
party shall be liable or bound to the other in any manner by any warranties, representations or guarantees except as specifically set forth herein. This Agreement shall not be altered or otherwise
amended except by an instrument in writing signed by both parties. 

        IN
WITNESS WHEREOF, the parties have executed this Agreement on the date last written below. 

	Accepted by:	 	Accepted by:
	SurModics, Inc.	 	Xtent, Inc.
	 	 	 
	 	 	 
	/s/ Robert W. Elliott, Jr.
 Signature	 	/s/ Hank A. Plain, Jr.
 Signature
	 	 	 
	 	 	 
	Robert W. Elliott, Jr.
 Printed Name	 	Hank A. Plain, Jr.
 Printed Name
	 	 	 
	 	 	 
	VP, Licensing Counsel
 Title	 	CEO and President
 Title
	 	 	 
	 	 	 
	Dec. 30, 2002
 Date	 	12/20/02
 Date

18

 
 
 

ATTACHMENT A    
    

SurModics, Inc. U.S. Patents

(may be listed under previous name: Bio-Metric Systems, Inc. or BSI Corporation)  

	1.
	METHOD
OF IMPROVING THE BIOCOMPATIBILITY OF SOLID SURFACES

U.S. Patent No. 4,973,493 issued 11/27/1990

	2.
	BIOCOMPATIBLE
COATINGS FOR SOLID SURFACES

U.S. Patent No. 4,979,959 issued 12/25/1990

	3.
	PREPARATION
OF POLYMERIC SURFACES VIA COVALENTLY ATTACHING POLYMERS

U.S. Patent No. 5,002,582 issued 3/26/1991

	4.
	BIOCOMPATIBLE
DEVICE WITH COVALENTLY BONDED BIOCOMPATIBLE AGENT

U.S. Patent No. 5,263,992 issued 11/23/1993

	5.
	RESTRAINED
MULTIFUNCTIONAL REAGENT FOR SURFACE MODIFICATION

U.S. Patent No. 5,414,075 issued 5/9/1995

	6.
	SUBSTRATE
SURFACE PREPARATION

U.S. Patent No. 5,512,329 issued 4/30/1996

	7.
	RESTRAINED
MULTIFUNCTIONAL REAGENT FOR SURFACE MODIFICATION

U.S. Patent No. 5,637,460 issued 6/10/1997

	8.
	PHOTOACTIVATABLE
CROSS-LINKING AGENTS CONTAINING CHARGED GROUPS FOR WATER SOLUBILITY

U.S. Patent No. 6,077,698 issued 06/20/2000

	9.
	SURFACE
COATING AGENTS

U.S. Patent No. 6,278,018 B1 issued 08/21/2001 

19

 
 
 

ATTACHMENT B1
  Stent Delivery System    
    

1.     MEDICAL PRODUCTS  

        "Medical
Products" means a Standard Length Stent or Custom Length (segmented) Stent and the following components of a stent delivery system: outer sheath, pusher, inflation catheter, and
inflation balloon. As used in this Attachment B1, a Standard Length Stent, or SLS, is a stent/balloon platform
that utilizes the XTENT stent on a delivery catheter that has standard balloon lengths and diameters commonly available from OEM catheter manufacturers. The stents delivered with the SLS are
comparable in expanded diameter and length to other stents currently on the market. The Custom Length Stent, or CLS, is a stent/balloon platform that utilizes the XTENT stent and XTENT custom delivery
catheter. The stents delivered with the CLS can be customized in-situ, thus providing a customized stent length as deemed appropriate by the physician. 

        For
the avoidance of doubt, the licenses granted in this Attachment B1 shall not apply with respect to (A) any component of a heart valve, or (B) any graft prosthetic
device or surgical shunt (or component of such graft or shunt) that is used as a diversionary path for blood around a blood vessel, or (C) any device having an attached coated or uncoated body
passageway liner, or (D) any device serving as a blood vessel liner (or component of such device) wherein a primary purpose of such device is not treating occlusive vascular disease. 

2.     LICENSED PRODUCT  

        "Licensed
Products" means Medical Products which are surface-treated with photo-reactive [*] 

3.     GRANT OF LICENSE  

        The
license granted under this Attachment is non-exclusive. 

4.     LICENSE FEES  

        XTENT
shall pay SURMODICS [*] in nonrefundable fees for the license in this Attachment B1 as follows: 

        (a)   [*]
upon SURMODICS' technology transfer under this Attachment B1 to XTENT. 

        (b)   [*]
six months after the first use of Licensed Product in a human. 

        (c)   [*]
upon marketing approval of Licensed Product (the stent delivery system, with or without a stent) by a regulatory body outside of the United
States or by the U.S. FDA, whichever occurs first. 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

20

 

5.     ROYALTY PAYMENTS  

        XTENT
shall pay SURMODICS a royalty for the Patent Rights and Know-how license granted herein, which will be the greater of Paragraphs 5(a) or 5(b) as follows: 

        [*]

        (b)   Quarterly
Minimum Royalties for Licensed Products as follows: 

        If
XTENT initiates commercial sale of its Standard Length Stent system independently of its Custom Length Stent system, then the following Minimum Royalty schedule shall apply: 

	Minimum Royalty Periods
 
	 	Quarterly Minimum Royalty

	January 1, 2005 to December 31, 2005	 	$	[*]
	January 1, 2006 to December 31, 2006	 	$	[*]
	January 1, 2007 to December 31, 2007	 	$	[*]

        For
the quarter calendar year commencing with January 1, 2008, and each year thereafter, the quarter calendar year Minimum Royalty shall be the prior year's quarterly Minimum
Royalty adjusted by a percentage equal to the percentage change in the "Consumer Price Index For All Urban Consumers" for the prior calendar year as reported by the U.S. Department of Labor. 

        If
XTENT elects not to initiate commercial sale of its Standard Length Stent system independently of its Custom Length Stent system, then the following Minimum Royalty schedule shall
apply: 

	Minimum Royalty Periods
 
	 	Quarterly Minimum Royalty

	January 1, 2006 to December 31, 2006	 	$	[*]
	January 1, 2007 to December 31, 2007	 	$	[*]
	January 1, 2008 to December 31, 2008	 	$	[*]

        For
the quarter calendar year commencing with January 1, 2009, and each year thereafter, the quarter calendar year Minimum Royalty shall be the prior year's quarterly Minimum
Royalty adjusted by a percentage equal to the percentage change in the "Consumer Price Index For All Urban Consumers" for the prior calendar year as reported by the U.S. Department of Labor. 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

21

 

        6.     [*]

        7.    PERFORMANCE    

        (a)   Failure
of XTENT to begin bona-fide commercial sales [*] of any Licensed Product as defined in this Attachment, shall permit
SURMODICS to terminate the license under this Attachment upon thirty (30) days written notice at
any time prior to the date XTENT begins bona-fide commercial sales of Licensed Product. 

        (b)   If,
[*] there are four (4) consecutive quarters in which XTENT fails to generate Earned Royalties under Paragraph 5(a) of this
Attachment then upon thirty (30) days written notice given to XTENT, the license granted herein shall, at SURMODICS' option, be terminated. 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY

[*], HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE

COMMISSION PURSUANT TO RULE 406 OF THE SECURITIES ACT OF 1933, AS AMENDED. 

22

 

        The
Licensed Product Effective Date of this Attachment shall be the date last written below or the date on which SURMODICS receives all payments due upon execution of this Attachment,
whichever is later. 

	Accepted by:	 	Accepted by:
	SurModics, Inc.	 	Xtent, Inc.
	 	 	 
	 	 	 
	/s/ Robert W. Elliott, Jr.
 Signature	 	/s/ Hank A. Plain, Jr.
 Signature
	 	 	 
	 	 	 
	Robert W. Elliott, Jr.
 Printed Name	 	Hank A. Plain, Jr.
 Printed Name
	 	 	 
	 	 	 
	VP, Licensing Counsel
 Title	 	CEO and President
 Title
	 	 	 
	 	 	 
	Dec. 30, 2002
 Date	 	12/20/02
 Date

23

 
 
 

ATTACHMENT C    
    
    Manufacturer Agreement and SurModics' Consent    
    

                                        
                ("Manufacturer") which is located
at                                         
       states, that it has read and understands the Master License
Agreement between SurModics, Inc. and Xtent, Inc. and that it desires to manufacture Licensed Product as permitted in that Master License Agreement. In return for SurModics' consent to
manufacture Licensed Product solely for sale by Xtent, Inc. and for other valuable consideration of which receipt and sufficiency are acknowledged, Manufacturer agrees with SurModics that
Manufacturer shall faithfully carry out and be bound by the obligations imposed on Xtent, Inc., including, without limitation, Paragraphs 8, 10, 11, 13, 14, 16 and 24 of the Master
License Agreement. 

        Manufacturer
further agrees: 

	1.
	SURMODICS
confidential information and SURMODICS Know-how will be provided only to employees at the above identified facility who have a need to know such information for
the specific purpose of manufacturing Licensed Products.

	2.
	Photo-reactive
chemical compounds manufactured by SURMODICS shall not be transferred by Manufacturer to any other facility of Manufacturer without the express written permission of
SURMODICS.

	3.
	Employees
and agents of Manufacturer will make no attempt to reverse engineer, in whole or in part, any confidential information (including photo-reactive compounds) of SURMODICS. 

        This
Agreement shall be effective upon the last day written below, and shall terminate automatically and without notice upon the termination or expiration of the relevant license under
the Master License Agreement. 

	Consented to by

SurModics, Inc.	 	Agreed to by

Manufacturer
	 	 	 
	 	 	 
	
 Signature	 	
 Signature
	 	 	 
	 	 	 
	
 Printed Name	 	
 Printed Name
	 	 	 
	 	 	 
	
 Title	 	
 Title
	 	 	 
	 	 	 
	
 Date	 	
 Date

24

 
ATTACHMENT C  

 Manufacturer Agreement and SurModics' Consent  

        Inavatec, S.r.1. ("Manufacturer") which is located at Via della Stella 62/64, 25062 Concesio (BS), Italy states, that it has read and understands the Master
License Agreement between SurModics, Inc. and Xtent, Inc. and that it desires to manufacture Licensed Product as permitted in that Master License Agreement. In return for
(i) SurModics' consent to manufacture Licensed Product for sale by either Xtent, Inc. or Manufacturer, and for (ii) other valuable consideration of which receipt and sufficiency
are acknowledged, Manufacturer agrees with SurModics that Manufacturer shall faithfully carry out and be bound by the obligations imposed on Xtent, Inc., including, without limitation,
Paragraphs 8, 10, 11, 13, 14, 16 and 24 of the Master License Agreement. 

        Manufacturer
further agrees: 

	1.
	SURMODICS
confidential information and SURMODICS Know-how will be provided only to employees at the above identified facility who have a need to know such information for
the specific purpose of manufacturing Licensed Products.

	2.
	Photo-reactive
chemical compounds manufactured by SURMODICS shall not be transferred by Manufacturer to any other facility of Manufacturer without the express written permission of
SURMODICS.

	3.
	Employees
and agents of Manufacturer will make no attempt to reverse engineer, in whole or in part, any confidential information (including photo-reactive compounds) of SURMODICS. 

        This
Agreement shall be effective upon the last day written below, and shall terminate automatically and without notice upon the termination or expiration of the relevant license under
the Master License Agreement. 

	Consented to by	 	Agreed to by
	SurModics, Inc.	 	Invatec, S.r.l.
	 	 	 
	 	 	 
	
 Signature	 	
 Signature
	 	 	 
	 	 	 
	
 Printed Name	 	
 Printed Name
	 	 	 
	 	 	 
	
 Title	 	
 Title
	 	 	 
	 	 	 
	
 Date	 	
 Date

25

 
 

Amendment    
    
    December 30, 2002 Master License Agreement    
    

        This Amendment, effective June 30, 2006, is by and between SurModics, Inc. ("SURMODICS"), and Xtent, Inc. ("XTENT"). 

        WHEREAS,
the parties wish to amend the Master License Agreement dated December 30, 2002 between SURMODICS and XTENT (the
"Agreement"); and 

        WHEREAS,
the parties hereby agree to amend the Agreement to (i) further define SURMODICS Technology and XTENT's grant-back license obligation to SURMODICS,
(ii) modify and specify new notice periods for XTENT's right to terminate the Agreement with and without cause, and (iii) postpone SURMODICS' right to terminate the license granted under
Attachment B1 to the Agreement. 

        NOW,
THEREFORE, subject to the full execution of this Amendment, XTENT and SURMODICS hereby agree to the following: 

A.    Amendment to the Agreement  

 1.    Paragraph 8(e) of the Agreement is amended in its entirety to read as follows:  

[8]e.    "SURMODICS' Technology" means (i) chemical species having photoactivatable chemical groups for bonding synthetic polymers
and/or biologically active materials onto surfaces, into matrices and to other molecules, (ii) processes and methods that use such chemical species having photoactivatable chemical groups to
apply or place synthetic polymers and/or biologically active materials onto surfaces, into matrices and to other molecules, and (iii) processes and methods used to manufacture and test such
chemical species.

 2.    Paragraph 8(f)(ii) of the Agreement is amended in its entirety to read as follows:  

[8(f)]ii.    Grant of License.    SURMODICS shall have and is hereby granted a noncancelable, nonexclusive, worldwide license, with
the right to sublicense, to make, have made for it, use and sell products and processes covered by each XTENT/SURMODICS Technology Patent Claim, in conjunction with the use of SURMODICS' Technology,
but only to the extent that (A) such product or its manufacture or use, as of the date of issuance of such XTENT/SURMODICS Technology Patent, is also covered by any Valid Claim, or
(B) SURMODICS can demonstrate that SURMODICS or a SURMODICS licensee had substantial knowledge of the claimed invention as of the date of its conception by XTENT.

If SURMODICS or a SURMODICS licensee did not have substantial knowledge of the invention of an XTENT/SURMODICS Technology Patent Claim as of the date of conception of the
invention so claimed, SURMODICS' right to sublicense shall exclude the right to manufacture, use or sell Medical Products as "Medical Products" are defined in this Agreement at the date of issuance of
that XTENT/SURMODICS Technology Patent. Notwithstanding the foregoing, in the event the application for the XTENT/SURMODICS Technology Patent is filed containing SURMODICS' Confidential Information,
without the advance written permission of SURMODICS, SURMODICS' right to sublicense shall not exclude the right to manufacture, use or sell Medical Products as "Medical Products' are defined in this
Agreement.

 3.    Paragraph 10(a)(i) of the Agreement is amended in its entirety to read as follows:  

[a.    For each license granted herein:]

i.    XTENT
may terminate this Agreement in whole or with respect to any license granted herein upon thirty (30) days written notice for any material breach or default by SURMODICS
unless during that period SURMODICS shall first cure such breach or default. 

 

XTENT
shall also have the right to terminate each license granted herein without cause with respect to each Attachment BI, B2, and so forth, under which such license was granted, but only in its
entirety, at any time upon six (6) months advance written notice. Upon termination of any license granted herein, XTENT shall have no further rights under Patent Rights or Know-how
with respect to the Licensed Product of that license. However, XTENT shall be allowed to sell any inventory of Licensed Products existing at the time of termination for a period of six
(6) months thereafter (thereafter destroying any remaining inventory), provided XTENT accounts for such sales of inventory and pays SURMODICS the appropriate Earned Royalty for such sales as
set out in Paragraph 4(a) of this Agreement. 

 4.    Paragraph 7 of Attachment B1 to the Agreement is amended in its entirety to read as follows:  

7.    PERFORMNCE

a.    Failure
of XTENT to begin bona-fide commercial sales by March 31, 2008, of any Licensed Product as defined in this Attachment, shall permit SURMODICS to terminate
the license under this Attachment upon thirty (30) days written notice at any time prior to the date XTENT begins bona-fide commercial sales of Licensed Product. 

b.    If,
after March 31, 2008, there are four (4) consecutive quarters in which XTENT fails to generate Earned Royalties under Paragraph 5(a) of this Attachment then
upon thirty (30) days written notice given to XTENT, the license granted herein shall, at SURMODICS' option, be terminated. 

B.    Full Force and Effect  

Except
as specifically amended by this Amendment, all other terms and conditions of the Agreement shall continue in full force and effect during the term of the Agreement. 

Signature Block Follows Immediately on Next Page  

2

 

        IN
WITNESS WHEREOF, the parties hereto execute this Amendment by their duly authorized employees. 

	Accepted by:	 	Accepted by:
	SurModics, Inc.	 	Xtent, Inc.
	/s/ Charlie Olson
 Signature	 	/s/ Jeffry Grainger
 Signature
	Charlie Olson
 Printed Name	 	Jeffry J. Grainger
 Printed Name
	VP/GM, Hydrophilic Technologies
 Title	 	VP Corporate Affairs, General Counsel
 Title
	7/19/06
 Date	 	7/18/06
 Date

3

QuickLinks

MASTER LICENSE AGREEMENT

ATTACHMENT A

ATTACHMENT B1 Stent Delivery System

ATTACHMENT C Manufacturer Agreement and SurModics' Consent

Amendment December 30, 2002 Master License Agreement

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00107-of-00352.parquet"}]]