Document:

Exhibit 10.18

 

* Confidential Treatment Requested by Celera Corporation*

 

LICENSE
AGREEMENT

 

For

MEASUREMENT
OF LIPOPROTEIN SUBSPECIES

Between

BERKELEY HEARTLAB, INC.

and

THE REGENTS OF THE UNIVERSITY OF CALIFORNIA

through the

Ernest
Orlando Lawrence

BERKELEY NATIONAL LABORATORY

 

 

* Confidential
Treatment Requested by Celera Corporation*

 

TABLE OF CONTENTS

 

	
  1.
  BACKGROUND

  	
  1

  
	
  2.
  DEFINITIONS

  	
  1

  
	
  3.
  LICENSE GRANT

  	
  3

  
	
  4.
  LICENSE ISSUE FEE

  	
  3

  
	
  5.
  ROYALTIES AND PAYMENTS

  	
  3

  
	
  6.
  PERFORMANCE REQUIREMENTS

  	
  5

  
	
  7. PROGRESS
  AND ROYALTY REPORTS

  	
  6

  
	
  8.
  BOOKS AND RECORDS

  	
  7

  
	
  9.
  LIFE OF THE AGREEMENT

  	
  7

  
	
  10.
  TERMINATION BY BERKELEY LAB

  	
  7

  
	
  11.
  TERMINATION BY HEARTLAB

  	
  7

  
	
  12.
  DISPOSITION OF LICENSED PRODUCTS ON HAND UPON TERMINATION

  	
  8

  
	
  13.
  USE OF NAMES AND TRADEMARKS AND NONDISCLOSURE OF AGREEMENT

  	
  8

  
	
  14.
  LIMITED WARRANTY

  	
  8

  
	
  15.
  PATENT PROSECUTION AND MAINTENANCE

  	
  9

  
	
  16.
  PATENT INFRINGEMENT

  	
  10

  
	
  17.
  WAIVER

  	
  10

  
	
  18.
  ASSIGNMENT

  	
  10

  
	
  19.
  INDEMNIFICATION

  	
  11

  
	
  20.
  LATE PAYMENTS

  	
  11

  
	
  21.
  NOTICES

  	
  12

  
	
  22.
  U.S. MANUFACTURE

  	
  12

  
	
  23.
  PATENT MARKING

  	
  12

  
	
  24.
  GOVERNMENT APPROVAL OR REGISTRATION

  	
  12

  
	
  25.
  EXPORT CONTROL LAWS

  	
  13

  
	
  26.
  FORCE MAJEURE

  	
  13

  
	
  27.
  MISCELLANEOUS

  	
  13

  

 

 

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LICENSE AGREEMENT FOR

MEASUREMENT OF LIPOPROTEIN SUBSPECIES

 

This license
agreement (the “Agreement”) is entered into by The Regents of the University of
California (“The Regents”), Department of Energy contract-operators of the
Ernest Orlando Lawrence Berkeley National Laboratory, 1 Cyclotron Road,
Berkeley, CA 94720, (jointly, “Berkeley Lab”), and Berkeley Heartlab, Inc.,
a California corporation (“HeartLab”) having its principal place of business at
1875 South Grant Ave, Suite 700, San Mateo, CA 94402.

 

1.  BACKGROUND

 

1.1           Certain inventions, generally characterized as measurement of
lipoprotein subspecies (Berkeley Lab reference number IB-1054), (the “Invention”),
were made in the course of research at Berkeley Lab and are covered by a U.S.
patent application and other proprietary rights.

 

1.2           The United States Department of Energy (“DOE”) sponsored
development of the Invention under Contract DE-AC03-76SF00098 between DOE and
The Regents (the “DOE Contract”). 
Consequently, this Agreement and the resulting license are subject to
overriding obligations to the federal government pursuant to the provisions of
the applicable law or regulations.

 

1.3           Berkeley Lab wants the Invention developed and used to the
fullest extent so that the general public enjoys the benefits.

 

1.4           HeartLab wants to obtain certain rights from Berkeley Lab for
the commercial development, manufacture, use, and sale of the Invention.

 

1.5           HeartLab is a “small business firm” as defined at Section 2
of Public Law 85-536 (15 U.S.C. 632).

 

Therefore the parties agree
as follows:

 

2.  DEFINITIONS

 

2.1           “Affiliate” of a party means any entity that, directly or
indirectly, controls that party, is controlled by that party or is under common
control with that party; “control” for these purposes means the actual, present
capacity to elect a majority of the directors or other managing authority of
such entity.

 

2.2           “Alternative Methodology Product” means any product or
service of HeartLab that performs substantially similar functions to inventions
claimed in a Licensed Patent (whether more highly automated or not) and whose
use, approval by the Federal Drug Administration, or attractiveness to the
market depends at least in a material part on Proprietary Rights.  Nothing in this Agreement shall create any
Berkeley Lab ownership interest to such Alternative Methodology Products, but
such products are subject to royalties to the extent provided in Section 5.1.

 

2.3           ‘‘Effective Date” means
April 30, 1997.

 

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2.4           “Highly Inflationary Currency” means the currency of any
economy with a cumulative inflation rate of 100% or more over the most recent
three calendar years, as measured by consumer price indices published by the
International Monetary Fund (International Financial Statistics), Washington,
D.C.

 

2.5           “Licensed Method” means any method, procedure, process or
other subject matter whose use or practice would constitute, but for the
license Berkeley Lab grants to HeartLab under this Agreement, an infringement
of any claim in the Licensed Patents.

 

2.6           “Licensed Patent” means US Patent Application Serial Number
[***]; any corresponding foreign patent application or patent for which
HeartLab has met the requirements of Article 15; any division,
reexamination, continuation, continuation-in-part (excluding new matter
contained and claimed in that continuation-in-part),application of any of the
foregoing or of which such application is a successor; any patents issuing on
any of the foregoing, and all renewals, reissues and extensions thereof.

 

2.7           “Licensed Product” means any product or service that employs
or is produced by the practice of inventions claimed in a Licensed Patent and
whose manufacture, use or sale would constitute, but for the license Berkeley
Lab grants to HeartLab under this Agreement, an infringement of any Valid Claim
in the Licensed Patents.

 

2.8           “Proprietary Rights” means information related to the
Invention, including data, drawings and sketches, designs, test results, and
information of a like nature, whether patentable or not, developed by [***] or
others working under their direct supervision at Ernest Orlando Lawrence
Berkeley National Laboratory. 
Proprietary Rights also includes copyright in the foregoing, to the
extent Berkeley Lab obtains the right to assert copyright under its DOE
Contract.

 

2.9           “Selling Price” for the purpose of computing royalties means [***]

 

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2.10         “Valid Claim” means either (a) a claim in a pending
patent application that has not been pending for more than [***] from its
filing date and that has not been abandoned; or (b) a claim of an issued
and unexpired patent that has not been held unenforceable, unpatentable or
invalid by a decision of a court or government agency of competent
jurisdiction, unappealable or unappealed within the time allowed for appeal and
that has not been admitted by the holder of the patent to be invalid or
unenforceable through reissue, disclaimer or otherwise.

 

3.  LICENSE GRANT

 

3.1           Subject to the limitations set forth in this Agreement,
Berkeley Lab grants to HeartLab the limited (by the terms of Sections 3.2
and 3.7) exclusive, royalty-bearing license, under the Licensed Patents and
Proprietary Rights, to make, use, and sell Licensed Products and Alternative
Methodology Products and to practice Licensed Methods.

 

3.2           Any license under this Agreement is subject to the
following:  (a) DOE’s royalty-free
license for federal government practice only, and (b) DOE’s option to
grant licenses either if reasonable steps to commercialize the Invention are
not carried out or in order to meet federal regulations.  HeartLab shall use commercially reasonable
best efforts to commercialize Licensed Products.

 

3.3           Berkeley Lab also grants to HeartLab the right to issue
royalty-bearing sublicenses to make, use, and sell Licensed Products,
Alternative Methodology Products or to practice Licensed Methods; provided,
however, that HeartLab may issue such sublicenses only if HeartLab has current
exclusive rights under this Agreement.

 

3.4           Any sublicense HeartLab grants must be consistent with all
the rights and obligations due Berkeley Lab and the United States Government
under this Agreement, including, without limitation, the license back to the
United States Government.

 

3.5           HeartLab shall provide Berkeley Lab with a copy of each
sublicense issued under this Agreement; collect payment of all royalties due
Berkeley Lab from sublicensees; and summarize and deliver all reports due
Berkeley Lab from sublicensees under Article 7 (PROGRESS AND ROYALTY
REPORTS).

 

3.6           If this Agreement terminates for any reason, Berkeley Lab, at
its sole discretion, shall determine whether HeartLab must cancel or assign to
Berkeley Lab any or all sublicenses.

 

3.7           Berkeley Lab expressly reserves the right to use the
Invention and associated technology solely for noncommercial educational and
research purposes.

 

4.  LICENSE ISSUE FEE

 

4.1           HeartLab shall pay Berkeley Lab a license issue fee of [***]
payable as follows:  (a) [***]
within [***]; (b) an additional [***]
by [***]

 

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; (c) and the remaining [***] by [***].

 

4.2           This fee is non-refundable and is not an advance against
royalties.

 

5.  ROYALTIES AND PAYMENTS

 

5.1           HeartLab shall pay to Berkeley Lab an earned royalty of [***]
of the Selling Price of each Licensed Product HeartLab sells.  That [***] royalty represents a royalty of
[***] of Selling Price for the license of Licensed Patents and [***] of Selling
Price for the license of Proprietary Rights. 
The parties understand that the [***] royalty rate only applies to sales
in countries where there is a Valid Claim in the Licensed Patents that claims
the manufacture, use or sale of the Licensed Product; in all other countries,
the [***] royalty rate applies.  In
addition, HeartLab shall pay to Berkeley Lab an earned royalty of [***] of the
Selling Price of each Alternate Methodology Product HeartLab or its sublicensee
or Affiliate sell.

 

5.2           Under this Agreement a Licensed Product is considered to be
sold when reimbursed, or if not invoiced, when delivered to a third party.  But when the last patent covering a Licensed
Product expires or when the license terminates, any shipment made on or before
the day of that expiration or termination that has not been billed out before
is considered as sold (and therefore subject to royalty).  Berkeley Lab shall credit royalties that
HeartLab pays on a Licensed Product that the customer later rejects, returns or
does not accept.

 

5.3           For each sublicense, HeartLab shall pay Berkeley Lab the same
royalties it would pay if HeartLab was making, using, or selling Licensed
Products under this Agreement.  The
royalties paid to HeartLab may exceed the royalties paid to Berkeley Lab.

 

5.4           HeartLab shall pay to Berkeley Lab by August 31 of each
year the difference between the earned royalties for that calendar year already
paid to Berkeley Lab and the minimum annual royalty set forth in the following
schedule.  Berkeley Lab shall credit that
minimum annual royalty paid against the earned royalty due and owing for the
calendar year in which HeartLab made the minimum payment.

 

	
  Calendar Year

  	
   

  	
  Minimum Annual Royalty

  	
   

  
	
  1997

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  1998

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  1999

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  2000 and each year thereafter

  	
   

  	
  $

  	
  [***]

  	
   

  

 

If HeartLab’s rights convert to non-exclusive, the
minimum annual royalty amounts set forth in this Section 5.4 shall [***].

 

5.5           HeartLab shall send payment for royalties accruing to
Berkeley Lab quarterly together with its royalty report under
paragraph 7.4.

 

5.6           HeartLab shall make checks payable to “The Regents of the
University of California (Berkeley Lab/L-97-1203).”  HeartLab shall pay Berkeley Lab only in
United States dollars.  If a Licensed
Product is sold for moneys other than United States dollars (not including
Highly Inflationary Currency), HeartLab shall first determine the earned roy-

 

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alties in the foreign currency of
the country in which the Licensed Product was sold and then convert them into
equivalent United States dollars at the closing exchange rate published by The Wall Street Journal on the last
business day of the reporting period.  If
a Licensed Product is sold for a Highly Inflationary Currency, HeartLab shall
convert the sales subject to royalties into equivalent United States funds
using the closing exchange rates in effect on the date of invoicing (or if no
invoicing, of delivery) as published by The
Wall Street Journal.  HeartLab
shall quote the exchange rate in the Continental method (local currency per
U.S. dollar).

 

5.7           HeartLab may not reduce royalties payable by any taxes, fees,
or other charges imposed on the remittance of royalty income, except for
applicable withholding taxes imposed for Berkeley Lab’s account, if any.
HeartLab is also responsible for all bank transfer charges.

 

5.8           If HeartLab cannot promptly remit any royalties for sales in
any country where a Licensed Product is sold because of legal restrictions,
HeartLab may deposit in United States funds royalties due Berkeley Lab to
Berkeley Lab’s account in a bank or other depository in that country.  If HeartLab is not permitted to deposit those
payments in U.S. funds under the laws of that country, HeartLab may deposit
those payments in the local currency to Berkeley Lab’s account in a bank or
other depository in that country.

 

5.9           If a court of competent jurisdiction and last resort holds
invalid any patent or any of the patent claims within Berkeley Lab’s Patent
Rights in a final decision from which no appeal has or can be taken, HeartLab’s
obligation to pay royalties based on that patent or claim will cease as of the
date of that final decision.  HeartLab,
however, shall pay any royalties that accrued before that decision or that are
based on another patent or claim not involved in that decision or that are
based on Proprietary Rights.

 

5.10         HeartLab has no duty to pay Berkeley Lab royalties under this
Agreement on a Licensed Product HeartLab sells to the United States Government
including any United States Government agency. 
HeartLab shall reduce the amount charged for a Licensed Product sold to
the United States Government by an amount equal to the royalty otherwise due
Berkeley Lab.

 

6.  PERFORMANCE REQUIREMENTS

 

6.1           HeartLab shall diligently proceed with the development,
manufacture and sale of Licensed Products and/or Alternate Methodology Products
and shall diligently endeavor to market them within a reasonable time after the
Effective Date in quantities sufficient to meet the market demand.

 

6.2           HeartLab shall make commercially reasonable efforts to obtain
all necessary governmental approvals for the manufacture, use and sale of
Licensed Products and/or Alternate Methodology Products.

 

6.3           HeartLab is entitled to exercise prudent and reasonable business
judgment in meeting its performance requirements under this Agreement.

 

6.4           Subject to Section 6.3, if HeartLab is unable to perform
any of the following, then Berkeley Lab upon 60 days notice may either
terminate this Agreement or reduce this

 

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limited exclusive license to a
nonexclusive license, which is Berkeley Lab’s sole and exclusive remedy for
such failure:

 

[***]

 

6.5           If Berkeley Lab has the right under Section 6.4 and
grants a non-exclusive license to any other party upon royalty rates more
favorable than those of this Agreement after reducing this license to a
non-exclusive license, then [***]

 

6.6           HeartLab and Berkeley Lab by mutual written consent may amend
or extend the requirements of paragraph 6.4.1 at the written request of
HeartLab in response to legitimate business reasons, including changes in
regulatory requirements, market conditions, or other reasonably unforseeable
circumstances.

 

7.  PROGRESS AND ROYALTY REPORTS

 

7.1           Beginning November 30, 1997 and semi-annually
thereafter, HeartLab shall submit to Berkeley Lab a summary progress report
covering HeartLab’s activities related to the development and testing of all
Licensed Products and/or Alternate Methodology Products.

 

7.2           The progress reports HeartLab submits under
Paragraph 7.1 must include, but not be limited to, the following topics:

 

7.2.1        market plans for introduction of new Licensed Products and
Alternate Methodology Products; and

 

7.2.2        number of full-time equivalent (FTEs) employees or agents
working on the development or marketing of Licensed Products and/or Alternate
Methodology Products.

 

7.3           HeartLab shall also report to Berkeley Lab in its immediately
subsequent royalty report on the date of first commercial sale of each Licensed
Product and/or Alternate Methodology Products in the U.S. and in each other
country.

 

7.4           After the first commercial sale of a Licensed Product and/or
Alternate Methodology Products anywhere in the world, HeartLab shall make
quarterly royalty reports to Berkeley Lab on or before February 28, May 31,
August 31 and November 30 of each year.  Each royalty report must cover the most
recently completed calendar quarter and must show:

 

7.4.1        the Selling Price of each type of Licensed Product and/or
Alternate Methodology Products sold by HeartLab;

 

7.4.2        the number of each type of Licensed Product and/or Alternate
Methodology Products sold;

 

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7.4.3        the royalties, in U.S. dollars, payable under this Agreement
on those sales;

 

7.4.4        the exchange rates used in calculating the royalty due;

 

7.4.5        the royalties on government sales that otherwise would have
been due under Paragraph 5.10; and

 

7.4.6        for each sublicense, if any:

 

(1)           the sublicensee;

 

(2)           the number, description, and aggregate Selling Prices of
Licensed Products that the sublicensee sold or otherwise disposed of;

 

(3)           the exchange rates used in calculating the royalties due
Berkeley Lab from the sublicensee’s sales.

 

7.5           If no sales of Licensed
Products have been made during any reporting period, HeartLab shall make a
statement to this effect.

 

8.  BOOKS AND RECORDS

 

8.1           HeartLab shall keep books and records accurately showing all
Licensed Products manufactured, used, or sold under the terms of this
Agreement.  HeartLab shall preserve those
books and records for at least five years from the date of the royalty payment to
which they pertain and shall open them to inspection by representatives or
agents of Berkeley Lab at reasonable times.

 

8.2           Berkeley Lab shall bear the fees and expenses of Berkeley Lab’s
representatives performing the examination of the books and records.  But if the representatives discover an error
in royalties of more than 5% of the total royalties due for any year, then
HeartLab shall bear the fees and expenses of these representatives and the
difference between the earned royalties and the reported royalties (which shall
be subject to the provisions of Article 20 (LATE PAYMENTS)).

 

9.  LIFE OF THE AGREEMENT

 

9.1           Unless otherwise terminated by operation of law or by acts of
the parties in accordance with the terms of this Agreement, this Agreement commences
on the Effective Date and expires concurrently with the last-to-expire issued
Licensed Patent, or if no such Licensed Patent issues, at ten (10) years
from the Effective Date.

 

9.2           Any termination of this Agreement shall not affect the rights
and obligations set forth in the following Articles:

 

Article 8              Books and Records

 

Article 12            Disposition of Licensed
Products on Hand upon Termination

 

Article 13            Use of Names and Trademarks
and Nondisclosure of Agreement

 

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Article 19            Indemnification

 

Article 25            Export Control Laws

 

9.3           Termination does not affect in any manner any rights of
Berkeley Lab arising under this Agreement before the termination. After
expiration of the Agreement as provided in  9.1, HeartLab shall retain a
nonexclusive, royalty-free license under the Proprietary Rights for all
purposes.

 

10.  TERMINATION BY BERKELEY LAB

 

10.1         If HeartLab violates or fails to perform any material term of
this Agreement, then Berkeley Lab may give written notice of such default
(“Default Notice”) to HeartLab. 
If HeartLab fails to cure that default and provide Berkeley Lab with
tangible evidence of the cure within [***] of the Default Notice, Berkeley Lab
may terminate this Agreement and the licenses granted by a second written
notice (“Termination Notice”) to HeartLab. 
If Berkeley Lab sends a Termination Notice to HeartLab, this Agreement
automatically terminates on the effective date of the Termination Notice.

 

11.  TERMINATION BY HEARTLAB

 

11.1         HeartLab at any time may terminate this Agreement in whole or
as to any portion of the Licensed Patents or Proprietary Rights by giving
written notice to Berkeley Lab.  HeartLab’s
termination of this Agreement will be effective [***] after its
notice.

 

12.  DISPOSITION OF LICENSED PRODUCTS

ON HAND UPON TERMINATION

 

12.1         Within [***] of
termination of this Agreement for any reason, HeartLab shall
provide Berkeley Lab with a written inventory of all Licensed Products in
process of manufacture or in stock. 
HeartLab shall dispose of those Licensed Products within [***] of
termination.  The sale of any Licensed
Product within the [***] is subject to the terms of this Agreement.

 

13.  USE OF NAMES AND TRADEMARKS AND

NONDISCLOSURE OF AGREEMENT

 

13.1         In accordance with California Education Code Section 92000,
HeartLab shall not use the name, “University of California, Ernest Orlando
Lawrence Berkeley National Laboratory, Department of Energy National Laboratory”
or shortened forms or adaptations of it (the “UC Name”), or make reference or
allusion to it in any advertisement, labeling or publicity relating to a
Licensed Product, except with the prior written permission of Berkeley Lab.

 

13.2         Neither party may disclose the terms of this Agreement to a
third party without express written permission of the other party, except when
required under either the California Public Records Act or other applicable law
or court order.  Notwithstanding the
foregoing, Berkeley Lab may disclose the existence of this Agreement and the
extent of the grant in Article 3, but shall not otherwise disclose the
terms of this Agreement, except to the DOE, and HeartLab may disclose the
Agreement in confidence to bona fide potential investors or acquirers.

 

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14.  LIMITED WARRANTY

 

14.1         Berkeley Lab warrants to HeartLab that it has the lawful
right to grant this license.

 

14.2         This license and the associated Invention are provided
WITHOUT WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY
OTHER WARRANTY, EXPRESS OR IMPLIED. BERKELEY LAB MAKES NO REPRESENTATION OR WARRANTY
THAT LICENSED PRODUCTS OR LICENSED METHODS WILL NOT INFRINGE ANY PATENT OR
OTHER PROPRIETARY RIGHT.

 

14.3         IN NO EVENT WILL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY
INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES RESULTING FROM EXERCISE OF THIS
LICENSE OR THE USE OF THE INVENTION OR LICENSED PRODUCTS.

 

14.4         Nothing in this Agreement may be construed as:

 

	
  14.4.1

  	
  a
  warranty or representation by Berkeley Lab as to the validity or scope of any
  of Berkeley Lab’s rights in Licensed Patents;

  
	
   

  	
   

  
	
  14.4.2

  	
  a warranty
  or representation that anything made, used, sold or otherwise disposed of
  under any license granted in this Agreement is or will be free from
  infringement of patents of third parties;

  
	
   

  	
   

  
	
  14.4.3

  	
  an
  obligation to bring or prosecute actions or suits against third parties for
  patent infringement, except as specifically provided for in Article 16
  (Patent Infringement); or

  
	
   

  	
   

  
	
  14.4.4

  	
  a grant
  by implication, estoppel or otherwise of any license or rights under any
  patents of Berkeley Lab other than Licensed Patents, regardless of whether
  such patents are dominant or subordinate to Licensed Patents;

  
	
   

  	
   

  
	
  14.4.5

  	
  an
  obligation to furnish any know-how not provided in Licensed Patents other
  than Proprietary Rights existing on the Effective Date.

  

 

15.  PATENT PROSECUTION AND MAINTENANCE

 

15.1         Berkeley Lab shall diligently maintain the United States
patents for Licensed Patents using counsel of its choice.  Berkeley Lab shall bear the cost of
preparing, filing, prosecuting and maintaining any United States patent covered
by this Agreement.

 

15.2         HeartLab may request that Berkeley Lab seek patent protection
on the Invention in foreign countries if available.  Berkeley Lab has no obligation to take action
to file foreign patent applications on behalf of HeartLab until the following
occurs:

 

	
  15.2.1

  	
  HeartLab
  makes that request in writing to Berkeley Lab by May 1, 1997. The
  absence of the required notice from HeartLab to Berkeley Lab acts as an
  election not to secure foreign rights.

  
	
   

  	
   

  
	
  15.2.2

  	
  That
  notice also identifies the countries HeartLab desires.

  

 

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  15.2.3

  	
  HeartLab
  pays Berkeley Lab the foreign license fee as set forth in paragraph 15.3.

  

 

15.3         The foreign license fee for each foreign counterpart to a
United States patent application shall be as follows:

 

	
  [***]

  	
   

  

 

15.4         Berkeley Lab shall bear the expense of preparing, filing and
prosecuting all foreign patent applications that Berkeley Lab files at
HeartLab’s request.  HeartLab shall bear
the expense of maintaining all resulting patents.  Berkeley Lab will hold those patents in its
name and obtain them using counsel of its choice.

 

15.5         Berkeley Lab may file patent applications at its own expense
in any country in which HeartLab has not elected to secure patent rights.  Those applications and resultant patents
shall not be subject to this Agreement.

 

15.6         Berkeley Lab shall provide HeartLab in a timely fashion with
copies of all relevant documentation so that HeartLab is informed of the
continuing prosecution of Licensed Patents and any foreign patent applications
Berkeley Lab files under paragraph 15.2 and has the opportunity to make
suggestions regarding such prosecution. 
HeartLab shall keep this documentation confidential. Berkeley Lab shall
use all reasonable efforts to amend any patent application to include claims
reasonably requested by Heart-Lab to protect the products contemplated to be
sold under this Agreement.

 

16.  PATENT INFRINGEMENT

 

16.1         If HeartLab learns of the substantial infringement of any of
Berkeley Lab’s Patent Rights, HeartLab shall so inform Berkeley Lab in writing
and shall provide Berkeley Lab with reasonable evidence of the
infringement.  During the period and in a
jurisdiction where HeartLab has exclusive rights under this Agreement, neither
party may notify a third party of the infringement of any of Berkeley Lab’s
Patent Rights without first obtaining written consent of the other party, which
consent shall not be unreasonably denied. 
Both parties shall use their best efforts in cooperation with each other
to terminate such infringement without litigation.

 

16.2         HeartLab may request that Berkeley Lab take legal action
against the infringement of Berkeley Lab’s Patent Rights.  HeartLab shall make that request in writing
and include reasonable evidence of the infringement and damages to
HeartLab.  If the infringing activity has
not been abated within [***] of that request, Berkeley Lab may elect to:  (a) commence suit on its own account; or
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shall give written notice of its
election to HeartLab by [***] after receiving notice of the request from
HeartLab. HeartLab may thereafter bring suit for patent infringement only if
Berkeley Lab elects not to commence suit and if the infringement occurred
during the period and in a jurisdiction where HeartLab has exclusive rights
under this Agreement.  If, however,
HeartLab elects to bring suit in accordance with this paragraph, Berkeley Lab
may thereafter join such suit at its own expense.

 

16.3         Such legal action as is decided upon must be at the expense
of the party on account of whom suit is brought and all consequent recoveries
belong to that party. But if Berkeley Lab and HeartLab jointly bring legal
action and fully participate in it, the parties must jointly share both the
expense and all recoveries in proportion to the share of expense each party
pays.

 

16.4         Each party shall cooperate with the other in litigation
proceedings instituted under this Agreement but at the expense of the party on
account of whom suit is brought.  The party
bringing the suit will control that litigation, except that Berkeley Lab may
elect to be represented by counsel of its choice in any suit brought by
HeartLab.

 

17.  WAIVER

 

17.1         The waiver of any breach of any term of this Agreement does
not waive any other breach of that or any other term.

 

18.  ASSIGNMENT

 

18.1         This Agreement is binding upon and
shall inure to the benefit of Berkeley Lab, its successors and assigns.  HeartLab may assign this Agreement upon
notice to Berkeley Lab to a HeartLab Affiliate or to a successor in interest by
way of acquisition, merger or sale of all or substantially all of HeartLab’s
assets.  Any other attempt by HeartLab to
assign this Agreement is void unless HeartLab obtains the prior written consent
of Berkeley Lab; Berkeley Lab shall not unreasonably withhold that consent.

 

19.  INDEMNIFICATION

 

19.1         HeartLab agrees to indemnify, hold harmless and defend
Berkeley Lab, its officers, employees, and agents; the sponsors of the research
that led to the Invention; and the inventors of the patents and patent
applications in Licensed Patents and their employers against any and all
claims, suits, losses, damage, costs, fees, and expenses resulting from or
arising out of exercise of this license or any sublicense except to the degree
attributable to Berkeley Lab’s own negligence or willful misconduct.  HeartLab shall pay all costs incurred by
Berkeley Lab in enforcing this indemnification, including reasonable attorney
fees.

 

19.2         HeartLab, at its sole expense, shall insure its activities in
connection with the work under this Agreement and obtain and keep in force
Comprehensive or Commercial Form General Liability Insurance (contractual
liability and products liability included) with limits as follows:

 

	
  19.2.1

  	
  Each
  Occurrence

  	
   

  	
  $

  	
  [***]

  
	
  19.2.2

  	
  Products/Completed
  Operations Aggregate

  	
   

  	
  $

  	
  [***]

  

 

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* Confidential Treatment
Requested by Celera Corporation*

 

	
  19.2.3

  	
  Personal
  and Advertising Injury

  	
   

  	
  $

  	
  [***]

  
	
  19.2.4

  	
  General
  Aggregate (commercial form only)

  	
   

  	
  $

  	
  [***]

  

 

19.3         The coverages and limits referred to in this Article 19
do not in any way limit the liability of HeartLab. HeartLab shall furnish
Berkeley Lab with certificates of insurance, including renewals, evidencing
compliance with all requirements at least 30 days prior to the first commercial
sale, use or distribution of a Licensed Product or Licensed Method.

 

	
  19.3.1

  	
  If such
  insurance is written on a claims-made form, coverage shall provide for a
  retroactive date of placement on or before the Effective Date.

  
	
   

  	
   

  
	
  19.3.2

  	
  HeartLab
  shall maintain the general liability insurance specified during: (a) the
  period that the Licensed Product or Method is being commercially distributed
  or sold (other than for the purpose of obtaining regulatory approvals) by
  HeartLab or by a sublicensee, Affiliate, or agent of HeartLab, and (b) a
  reasonable period thereafter, but in no event less than five years.

  

 

19.4         The insurance coverage of paragraph 19.2 must:

 

	
  19.4.1

  	
  Indicate
  that DOE, “The Regents of the University of California” and its officers,
  employees, students, and agents, are endorsed as additional insureds.

  
	
   

  	
   

  
	
  19.4.2

  	
  Include a
  provision that the coverages are primary and do not participate with, nor are
  excess over, any valid and collectible insurance or program of self-insurance
  carried or maintained by Berkeley Lab.

  

 

20.  LATE PAYMENTS

 

20.1         If HeartLab is late in making a payment to Berkeley Lab by
more than [***] after the payment is due, HeartLab shall pay to Berkeley Lab
such reasonable administrative fees and interest as Berkeley Lab
generally charges third parties on overdue accounts.

 

21.  NOTICES

 

21.1         Any payment, notice or other communication this Agreement
requires or permits either party to give must be in writing to the appropriate
address given below, or to such other address as one party designates by
written notice to the other party.  The
parties deem payment, notice or other communication to have been properly given
and to be effective (a) on the date of delivery if delivered in person; (b) on
the fourth day after mailing if mailed by first-class mail, postage paid; (c) on
the second day after delivery to an overnight courier service such as Federal
Express, if sent by such a service; or (d) upon confirmed transmission by
telecopier.  The parties’ addresses are
as follows:

 

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  For payments to Berkeley Lab:

  

  Ernest O. Lawrence

  Berkeley National
  Laboratory

  Accounting/Financial Management

  P.O. Box 528

  Berkeley, California 94701

  Attention: Licensing
  Accountant

  Fax: 510/486-5995

  Telephone: 510/486-7113

  	
   

  	
  For all other notices to Berkeley Lab:

  

  Ernest O. Lawrence

     Berkeley National Laboratory

  Technology Transfer Department

  Mailstop 90-1070

  One Cyclotron Road
 Berkeley, California 94720

  Attention: Licensing Manager

  Fax: 510/486-6457

  Telephone: 510/486-6467

  
	
   

  	
   

  	
   

  
	
  In the case of HeartLab:

  

  1875 South Grant Ave, Suite 700

  San Mateo, CA 94402

  Attention: Dr. Robert Swift, CEO

  Fax: 415/372-1948

  Telephone: 415/372-1941

  	
   

  	
   

  

 

22.  U.S. MANUFACTURE

 

22.1         HeartLab
shall have Licensed Products produced for sale in the United States
manufactured substantially in the United States so long as HeartLab has current
exclusive rights.

 

23.  PATENT MARKING

 

23.1         HeartLab
shall mark all Licensed Products made, used or sold under this Agreement, or
their containers, in accordance with the applicable patent marking laws.

 

24.  GOVERNMENT APPROVAL OR REGISTRATION

 

24.1         If the law of any nation requires that any governmental
agency either approve or register this Agreement or any associated transaction,
HeartLab shall assume all legal obligation to do so.  HeartLab shall notify Berkeley Lab if it
becomes aware that this Agreement is subject to a U.S. or foreign government
reporting or approval requirement. 
HeartLab shall make all necessary filings and pay all costs, including
fees, penalties, and all other costs associated with such reporting or approval
process.

 

25.  EXPORT CONTROL LAWS

 

25.1         HeartLab shall observe all applicable United States and
foreign laws and regulations with respect to the transfer of Licensed Products
and related technical data, including, without limitation, the International
Traffic in Arms Regulations (ITAR) and the Export Administration Regulations.

 

4/29/97;
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L-97-1203

 

* Confidential Treatment
Requested by Celera Corporation*

 

26.  FORCE MAJEURE

 

26.1         If a party’s performance required under this Agreement is
rendered impossible or unfeasible due to any catastrophes or other major events
beyond its reasonable control, including, without limitation, the following,
the parties are excused from performance: 
war, riot, and insurrection; laws, proclamations, edicts, ordinances or
regulations; strikes, lockouts or other serious labor disputes; and floods,
fires, explosions, or other natural disasters. 
When such events abate, the parties’ respective obligations under this
Agreement must resume.

 

27.  MISCELLANEOUS

 

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

 

27.2         This Agreement is not binding upon the parties until it is
signed below on behalf of each party.

 

27.3         No amendment or modification hereof shall be valid or binding
upon the parties unless made in writing and signed on behalf of each party.

 

27.4         This Agreement embodies the entire and final understanding of
the parties on this subject. It supersedes any previous representations,
agreements, or understandings, whether oral or written.

 

27.5         If a court of competent jurisdiction holds any provision of
this Agreement invalid, illegal or unenforceable in any respect, this Agreement
must be construed as if that invalid or illegal or unenforceable provision is
severed from the Agreement.  All other
provisions of this Agreement must continue without regard to the severed
provision, provided that the remaining provisions of the Agreement are in
accordance with the intention of the parties.

 

27.6         This Agreement must be interpreted under California law.

 

Berkeley Lab and HeartLab
execute this Agreement in duplicate originals through their duly authorized
respective officers in one or more counterparts, that taken together, are but
one instrument.

 

	
  THE REGENTS OF THE
  UNIVERSITY OF CALIFORNIA, THROUGH THE ERNEST ORLANDO LAWRENCE BERKELEY
  NATIONAL LABORATORY

  	
   

  	
  BERKELEY HEARTLAB, INC.

  
	
   

  	
   

  	
   

  
	
  By 

  	
  /s/ Piermaria Oddone

  	
   

  	
  By 

  	
  /s/ Robert L. Swift

  
	
   

  	
  (Signature)

  	
   

  	
   

  	
  (Signature)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By 

  	
  Piermaria Oddone

  	
   

  	
  By 

  	
  Robert Swift

  
	
   

  	
  (Please Print)

  	
   

  	
   

  	
  (Please Print}

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title

  	
  Deputy Laboratory Director

  	
   

  	
  Title

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date 

  	
  April 30/97

  	
   

  	
  Date

  	
  April 30, 97

  
	
   

  	
   

  	
   

  
	
  Approved as to form

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
                    /s/
  Glenn R. Woods

  	
   

  	
   

  
	
  GLENN R. WOODS

  	
   

  	
   

  
	
  LAWRENCE BERKELEY
  LABORATORY

  	
   

  	
   

  
									

 

4/29/97;
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14Exhibit 10.22

 

* Confidential
Treatment Requested by Celera Corporation*

 

 

LICENSE AGREEMENT

 

This License Agreement (the “Agreement”),
effective as of July 1, 2007  (the “Effective Date”), is by and between Applera Corporation, a
Delaware corporation, through its Celera Group, having offices at 1401 Harbor
Bay Parkway, Alameda, California 94502 (“Celera”), and
Siemens Medical Solutions Diagnostics, a California corporation, having offices
at 511 Benedict Avenue, Tarrytown, New York 10591 (“Siemens”).
Each of Celera and Siemens hereafter shall be referred to individually as a “Party” and, collectively, as the “Parties”.

 

WHEREAS, Celera owns Real-Time Apparatus Patent Rights and Livak Patent
Rights as defined below;

 

WHEREAS, Siemens has requested worldwide license rights under the
foregoing patent rights; and

 

WHEREAS, Celera is prepared to grant license rights under the foregoing
patent rights in the HIVD Field, as defined below.

 

NOW, THEREFORE, in consideration of the recitals set forth above and
the terms and conditions set forth below, the Parties agree as follows:

 

1.                                      Definitions

 

For the purpose of this Agreement the terms set forth hereinafter shall
be defined as follows:

 

1.1                                 “Affiliate” means:

 

(a)                                  a Person of which
fifty percent (50%) or more of the voting stock is controlled or owned directly
or indirectly by either Party;

 

(b)                                 a Person which
directly or indirectly owns or controls fifty percent (50%) or more of the
voting stock of either Party;

 

(c)                                  a Person, the
majority ownership of which is directly or indirectly common to the majority
ownership of either Party to this Agreement; and

 

(d)                                 an organization under
(a), (b), or (c) above in which the amount of said ownership is less than
fifty percent (50%) and that amount is the maximum amount permitted pursuant to
the law governing the ownership of said organization.

 

1.2                                 “Arm’s-Length Sale” means a sale of
Licensed Reagent Products to an unrelated Third Party end-user in which (a) such
end-user does not enjoy any special course of dealing with Siemens or its
Affiliates, (b) such end-user does not provide any non-monetary
consideration for the Licensed Reagent Products, and (c) the gross invoice
price of the Licensed Reagent Products is not affected by any other purchase of
goods or services or any license of intellectual property other than the
end-user rights conveyed in Article 2 of this Agreement.

 

1.3                                 “First Commercial Sale” shall mean the first sale, placement or lease of
the first Licensed Real-Time Thermal Cycler or Licensed Reagent Product by Siemens,
or an 

 

1

 

* Confidential
Treatment Requested by Celera Corporation*

 

Affiliate
or a distributor, anywhere in the world to a Third Party, excluding any sale,
placement or lease for experimental, test marketing, or promotional purposes.

 

1.4                                 “Human In Vitro Diagnostic Field”  or “HIVD Field” means the in vitro measurement, observation, and/or determination of
attributes, characteristics, diseases, traits or other conditions of a human
being for the medical management of a human being, including without
limitation:  (a) genetic testing,
including determinations of genetic predisposition, for such medical
management; (b) oncology and cancer predisposition testing for such
medical management; (c) testing for tissue typing for such medical
management; (d) infectious disease detection, screening, confirmation and
monitoring for such medical management; (e) therapeutic drug monitoring;
and (f) blood screening for blood intended to be introduced into a live
human for therapeutic or diagnostic purposes. 
The HIVD Field excludes all other fields, including but not limited to,
research (except for research solely for uses reasonably related to the
development of a diagnostic product under a United States Food and Drug
Administration regulation), epidemiology (i.e., the screening or testing of
groups of people or populations for control of disease in groups of people or
for the study of patterns or causes of disease or medical conditions),
biosecurity, identity testing, forensic testing, testing and monitoring of
environmental and food samples, and, with respect to products other than
products licensed hereunder, quality assurance and quality control.

 

1.5                                 “Licensed Components” means substitute
components, modules and software that (a) are for Licensed Real-Time
Thermal Cyclers on which Siemens paid royalties to Celera pursuant to this
Agreement, and (b) the manufacture, use, sale, offer for sale or import of
which, but for the license granted herein, would infringe or contribute to the
infringement of at least one Valid Claim of any Real-Time Apparatus Patent
Right.

 

1.6                                 “Licensed Patent Rights” means Real-Time Apparatus Patent
Rights and Livak Patent Rights.

 

1.7                                 “Licensed Reagent Product” means a reagent product the manufacture,
use, importation, offer for sale or sale of which, but for the license granted
herein, would infringe or contribute to the infringement of a Valid Claim of
any Livak Patent Right. Specifically, “Licensed Reagent Product” includes any
kit, reagent or group of reagents, sold together or separately, which provides
an end-user with the essential reagents necessary to perform the process of
Livak Patent Rights. For example, (a) analyte specific reagents (defined
in 21 C.F.R. 809.10(e), 809.30, and 864.4020(a)) such as primers and probes,
and general purpose reagents (defined in 21 C.F.R. 864.4010(a)) such as DNA
polymerases, and (b) diagnostic devices or diagnostic products designed
and intended for use in accordance with 21 C.F.R. 812.2(c)(3) and/or 809.10(c)(2),
are Licensed Reagent Products which are used in performing nucleic acid
amplification and detection in a real-time process.

 

1.8                                 “Licensed Real-Time Thermal Cycler” means a
Real-Time Thermal Cycler the manufacture, importation, offer for sale, sale or
use of which, but for the license granted herein, would infringe or contribute
to the infringement of at least one Valid Claim of any Real-Time Apparatus
Patent Right.

 

1.9                                 “Livak Patent Rights” means U.S. Patent Nos. 5,538,848;
5,723,591; 5,876,930; 6,030,787; 6,258,569 and 6,821,727 and all patents and
patent applications claiming 

 

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Treatment Requested by Celera Corporation*

 

common priority with any
of the foregoing and all foreign counterparts of any of the foregoing patents
and patent applications.

 

1.10                           “Net Sales Price” means:

 

(a)                                  For an Arm’s-Length
Sale for money only of a Licensed Reagent Product to an unrelated Third Party
end-user by Siemens or its Affiliate, the gross invoice price to the end-user
minus the following deductions where applicable, to the extent included in the
invoice price and paid by seller: (i) actual
credited allowances to the end-user for spoiled, damaged, outdated or returned
Licensed Reagent Product, (ii) discounts allowed and taken, in
amounts customary in the trade, and (iii) sales or use taxes and duties
for particular sales.  No allowance or
deduction shall be made for commissions or collections, by whatever name known.

 

(b)                                 For a sale of a Licensed
Reagent Product to a distributor rather than an end-user, the Net Sales Price
shall be the product of (i) the Net Sales Price determined pursuant to Section 1.10(a) using
the gross invoice price to the final distributor, multiplied by (ii) a
factor of 1.50.

 

(c)                                  For a sale of a
Licensed Reagent Product to an end-user for use on an instrument under a
reagent rental program, the Net Sales Price of the Licensed Reagent Product
shall be determined pursuant to Section 1.10(a) using the gross
invoice price less twenty-five percent (25%) (“RAP Deduction”).  The RAP Deduction will only apply to sales to
end-users under a reagent rental program and only during the term of such
reagent rental program and will not apply to sales to such end-users after the
reagent rental program has expired.

 

(d)                                 For a sale or other
distribution of a Licensed Reagent Product that is not subject to Section 1.10(a),
(b) or (c) (including, but not limited to, transfer to a Third Party
end-user that is not an Arm’s-Length Sale), the Net Sales Price shall be the “Average
Net Sales Price.”  As used herein the
term “Average Net Sales Price” means:

 

(i)                                     the
average of Net Sales Price for transfers under Section 1.10(a) over
the one year period preceding the date of the transfer subject to this Section 1.10(d) of
the same type and model of Licensed Reagent Product and in the same country as
such transferee; or

 

(ii)                                  if
data is unavailable under subpart (i), then the fair market value (with
reference to the sales price of comparable products).

 

In the event that Licensed Reagent Product is consumed by Siemens or
its Affiliate as an end-user, then Section 3.3(c) applies.

 

1.11                           “Person” means a(n) individual,
corporation, trust, partnership, limited liability company, joint venture,
unincorporated organization or other entity.

 

1.12                           “Real-Time Apparatus Patent Rights” means
those particular claims or pending claims of U.S. patents and pending patent
applications owned by Celera as of the Effective Date that claim a Real-Time
Thermal Cycler or a component thereof, and/or, to the extent not expressly
excluded pursuant to Section 1.12(1)-(5), any method of 

 

3

 

* Confidential
Treatment Requested by Celera Corporation*

 

manufacturing a Real-Time
Thermal Cycler or a component thereof or any method of testing, calibrating or
operating a Real-Time Thermal Cycler or a component thereof.  Real-Time Apparatus Patent Rights expressly
includes, without limitation:

 

(a)                                  all claims in each of
U.S. Patent Nos. 6,814,934; 6,703,236; 5,656,493; 5,475,610; 5,333,675; and
5,038,852;

 

(b)                                 claims 12-24, 27 and
28 in U.S. Patent No. 5,928,907;

 

(c)                                  any claims in foreign
counterpart patents and patent applications directed to the subject matters of
the claims referred to in Section 1.12(a) and 1.12(b) above,
including, without limitation, EP 0872562 B1; and

 

(d)                                 any and all claims in continuations, continuations-in-part (except for claimed subject
matter outside the scope of  Sections
1.12(a)-(c) above), divisions, and additions of the aforesaid patent applications, and any and all patents issuing
from the aforesaid patent applications, and any reexaminations,
reissues, substitutions, and extensions of the foregoing, all to the extent
they are directed to the subject matters of the claims referred to in Sections
1.12(a) and 1.12(b) above.

 

Notwithstanding anything herein to the contrary, “Real-Time
Apparatus Patent Rights” expressly excludes:

 

(1)                                  any
claims of any patents and patent applications that cover real-time chemistry, reagents,
reagent-containing kits, reagent-containing systems, and methods employing
particular real-time chemistry, that an instrument user, including Siemens, may
otherwise wish or need for the performance of amplification and detection
methods, including without limitation, real-time detection methods, utilizing
Licensed Real-Time Thermal Cyclers;

 

(2)                                  all claims in each of
(i) U.S. Patent Nos. 6,153,426; 6,818,437; 6,638,761; and RE39,566; (ii) U.S.
Patent Application 2005-0151972; and (iii) European Patent EP 1216098;

 

(3)                                  claims 1-11, 25 and
26 in U.S. Patent No. 5,928,907;

 

(4)                                  any claims in foreign
counterpart patents and patent applications directed to the subject matters of
the claims referred to in Sections 1.12(2) and 1.12(3) above; and

 

(5)                                  any and all claims in continuations, continuations-in-part (to the extent they claim
subject matter within the scope of Sections 1.12(2)-(4) above), divisions,
and additions of the aforesaid patent
applications, and any and all patents issuing from the aforesaid patent
applications, and any reexaminations, reissues, substitutions, and
extensions of the foregoing, all to the extent they are directed to the subject
matters of the claims referred to in Section 1.12(2) and 1.12(3) above.

 

1.13                           “Real-Time Thermal Cycler” means an
instrument, whether in single or multiple modules, that includes a Thermal
Cycler and a detector which can be used to detect a fluorescence optical signal
while the Thermal Cycler is in operation and without 

 

4

 

* Confidential
Treatment Requested by Celera Corporation*

 

opening the reaction
chambers (e.g. tubes, microtitre plates, wells or depressions) in which nucleic
acid amplification is occurring.  In
addition, a Real-Time Thermal Cycler in the HIVD Field must fulfill the
following criteria:

 

(A)(i) when sold or used in the United States, it
is designed, developed and manufactured in accordance with the Quality System
Regulation (as promulgated by the United States Food and Drug Administration,
and set forth in 21 C.F.R. Part 820, and as may be amended from time to
time), (ii) when sold or used in the European Union, it is designed,
developed and manufactured in accordance with the ISO 13485 standard (as
promulgated by the International Organization for Standardization, and as may
be amended from time to time) and is certified to be compliant with European
Directives on in vitro diagnostic medical devices, including, without
limitation, European Directive 98/79/EC (collectively, IVD-D), and (iii) when
sold or used in other jurisdictions, it satisfies the applicable regulatory
requirements relating to human in vitro diagnostic products;

 

(B) it is designed, configured, promoted,
intended for use, and used with a menu of Siemens-provided diagnostic kits that
(i) when sold or used in the United States, have been cleared under 21
U.S.C. 360(k) or approved under 21 U.S.C. 360e for diagnostic purposes by
the United States Food and Drug Administration and are promoted, intended for
use, and sold only for the cleared or approved purpose(s), (ii) when sold
or used in the European Union, are designed, developed and manufactured in
accordance with the ISO 13485 standard (as promulgated by the International
Organization for Standardization, and as may be amended from time to time) and
are certified to be compliant with European Directives on in vitro diagnostic
medical devices, including, without limitation, European Directive 98/79/EC
(collectively, IVD-D), and (iii) when sold or used in other jurisdictions,
are approved, compliant or are otherwise cleared by the appropriate regulatory
authority that regulates in vitro diagnostic devices for the designated
diagnostic uses in each other jurisdiction where such diagnostic kits are sold;
and

 

(C) in the United States, it may also be designed, configured,
promoted and intended for use with Siemens-provided analyte specific reagents
(with or without general purpose reagents), and with diagnostic devices that
are reagents and/or diagnostic products that are reagents, as such terms are
defined in 21 C.F.R. 809.10(e), 809.30, 864.4020(a), 864.4010(a), 812.2(c)(3) and/or
809.10(c)(2).

 

1.14                           “Thermal Cycler” means an instrument,
whether in single or multiple modules, that is capable in itself of
automatically cycling samples in the polymerase chain reaction (PCR) process,
including any controlling hardware and software.

 

1.15                           “Territory” means worldwide.

 

1.16                           “Third Party” means a Person other than
Siemens or Celera or their Affiliates.

 

1.17                           “Valid Claim” means a claim of an issued
unexpired patent that has not been disclaimed or revoked or held unpatentable,
invalid or unenforceable pursuant to a final and unappealable decision of a
court or other applicable administrative agency with appropriate jurisdiction.

 

5

 

* Confidential Treatment
Requested by Celera Corporation*

 

2.                                      Grant

 

2.1                                 Rights
for Licensed Real-Time Thermal Cyclers. 
Upon the terms and subject to the exceptions and conditions of this
Agreement, Celera grants to Siemens a nonexclusive license under Real-Time
Apparatus Patent Rights to develop, make, use, import, offer for sale, and sell
Licensed Real-Time Thermal Cyclers and Licensed Components in the HIVD Field
and in the Territory.  The license
granted in this Section 2.1 does not include the right to have Licensed
Real-Time Thermal Cyclers or Licensed Components made by Third Parties,
provided, however, that Siemens may have its first to be commercialized
Licensed Real-Time Thermal Cycler and upgrades thereof (which do not change the
fundamental operating principle of such first to be commercialized Licensed
Real-Time Thermal Cycler), made by Stratagene Corporation or its successor(s),
e.g., the successor in the announced acquisition by Agilent Technologies Inc.

 

2.2                                 Rights
for Licensed Reagent Products.  Upon
the terms and subject to the exceptions and conditions of this Agreement,
Celera grants to Siemens a nonexclusive license under Livak Patent Rights to
make, have made, use, import, offer for sale, and sell Licensed Reagent
Products in the HIVD Field and in the Territory.

 

2.3                                 Sale
and Distribution.  Under the licenses
granted in Sections 2.1 and 2.2, Siemens may only offer for sale, sell and
otherwise distribute Licensed Real-Time Thermal Cyclers, Licensed Components
and Licensed Reagent Products: (a) directly to end-users, (b) to
end-users through Siemens’ Affiliates, or (c) to end-users through one or
more local Third Party distributors that are neither (i) engaged in the
global sales of products in the HIVD Field, nor (ii) Affiliates of any
Person that is engaged in the global sales of products in the HIVD Field, nor (iii) engaged
in activities that infringe Licensed Patent Rights in the United States,
Canada, the United Kingdom, France, Germany, Italy, the Netherlands, Spain or
Portugal.

 

2.4                                 Trademark;
Co-Marketing.  Under the licenses
granted in Sections 2.1 and 2.2, Siemens may only offer for sale, sell and
otherwise distribute Licensed Real-Time Thermal Cyclers, Licensed Components
and Licensed Reagent Products under Siemens’ name and trademarks, provided,
however, that Siemens’ first to be commercialized Licensed Real-Time Thermal
Cycler, and upgrades thereof, may be
co-branded with Stratagene Corporation or its successor(s), e.g., the successor
in the announced acquisition by Agilent Technologies Inc.  Siemens shall not make any arrangement or
enter into any agreement with a Third Party or an Affiliate of a Third Party,
either of which is engaged in the global sales of products in the HIVD Field,
in order for such Third Party or its Affiliate to act as a co-marketer with
Siemens of Licensed Real-Time Thermal Cyclers or Licensed Reagent Products or
both.

 

2.5                                 No
Sublicense.  The licenses granted in
Sections 2.1 and 2.2 do not include any right to grant sublicenses.  Notwithstanding the foregoing, Siemens may
exercise the rights granted under this Agreement through one or more Affiliates
as long as they remain Affiliates and abide by the obligations of this Agreement,
except that Siemens shall report and pay royalties under this Agreement on
behalf of such Affiliates.

 

2.6                                 Covenant
for Licensed Reagent Products. 
Celera hereby covenants not to assert against Siemens, its Affiliates,
distributors or customers any patent owned, or issuing from a patent application
owned, by Celera as of the Effective Date that would 

 

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necessarily be infringed
(i.e., no non-infringing alternatives) by the practice of the Livak Patent
Rights in the HIVD Field pursuant to the license granted under this Agreement.

 

2.7                                 No
Other Patent Rights Granted.  Other
than the Licensed Patent Rights and subject to the covenant in Section 2.6,
no rights are granted expressly, by implication or by estoppel under any other
patents owned by Celera or its Affiliates.

 

3.                                      Fees,
Royalties, Records and Reports

 

3.1                                 Issuance
Fee.  Siemens shall pay to Celera a
fee of twenty-four million U.S. dollars (US $24,000,000), not creditable
against royalties (defined below), payable in ten (10) quarterly
installments of two million, four hundred thousand U.S. dollars (US $2,400,000)
each (such quarterly installments once made shall be non-refundable).  Siemens shall pay the first installment
(which is due for the quarterly period commencing July 1, 2007) to Celera
within fifteen (15) days after the date the last Party signs this Agreement and
pay each subsequent installment on the 10th day of each subsequent
calendar quarter until all ten installments have been paid (“Payment Period”).  For the avoidance of doubt, assuming the
Agreement is signed in September 2007, the second installment will be
payable on 10 October 2007, the third installment will be payable on 10 January 2008,
and so on.

 

3.2                                 Licensed
Real-Time Thermal Cycler.

 

(a)                                  Siemens shall pay to
Celera a royalty of [***] for each Licensed Real-Time Thermal Cycler that (i) is
sold, placed, leased or otherwise transferred by or for Siemens after the
Effective Date and (ii) the manufacture, use, sale or placement of which
is covered by a Valid Claim in U.S. Patent No. 6,814,934 (the “ ‘934
Patent”), European Patent EP 0872562 B1 (the “ EP ‘562 Patent”), or any patent
in other countries directly or indirectly claiming priority to or having common
priority with (“Counterpart”) either of the foregoing patents (the ‘934 Patent,
the EP ‘562 Patent, and any Counterparts together constituting “Principal
Patent Rights”) .  To be clear, such
royalty payment under this Section 3.2(a) is triggered by sale, placement,
lease or transfer of each operable Real-Time Thermal Cycler unit covered by a
Valid Claim of  Principal Patent Rights
in the country of manufacture or in the country of use, sale, placement, lease
or transfer or in both countries.  As
provided in greater detail in Sections 3.2(d) and (e) below, Licensed
Real-Time Thermal Cyclers that are manufactured and sold where neither
manufacture nor sale (a) is covered by a Valid Claim of a Principal Patent
Right, but (b) is covered by a Valid Claim in any remaining Real-Time
Apparatus Patent Rights, shall be subject to a royalty of [***] per Licensed
Real-Time Thermal Cycler unit. 
[***]  will be payable on each
Licensed Real-Time Thermal Cycler regardless of the number of Real-Time
Apparatus Patent Rights implicated.

 

(b)                                 A sale, placement, lease or other transfer of a
Licensed Real-Time Thermal Cycler shall be deemed to have been made when such
transaction is invoiced to a Third Party or otherwise recorded by Siemens,
whichever occurs first.  Sales,
placement, leases or other transfers of Licensed Real-Time Thermal Cyclers
between or among Siemens and its Affiliates shall not be subject to the royalty

 

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                                                obligation of Section 3.2(a) (except as
provided in Section 3.2(h)); however, such Licensed Real-Time Thermal
Cycler once sold, placed, leased or otherwise transferred by Siemens or an
Affiliate to a Third Party shall be subject to the royalty obligation of Section 3.2(a).

 

(c)                                  No royalty will be
payable on Licensed Components sold or transferred by or for Siemens for
Licensed Real-Time Thermal Cyclers on which Siemens paid royalties pursuant to Section 3.2(a) or
3.2(h).

 

(d)                                 Upon the expiration of
the ‘934 Patent, or in the event that there is no longer a Valid Claim in the ‘934
Patent covering a particular Licensed Real-Time Thermal Cycler or its
manufacture, the royalty amount specified in Section 3.2(a) shall be
reduced to [***] for each such Licensed Real-Time Thermal Cycler that
thereafter is made in the United States and sold or placed in a country
(including the United States) where there is a Valid Claim under any remaining
Real-Time Apparatus Patent Rights that covers such Licensed Real-Time Thermal
Cycler.  For the avoidance of doubt, even
after the ‘934 Patent expires or no longer contains a Valid Claim covering such
particular Licensed Real-Time Thermal Cycler or its manufacture, the [***] per
unit royalty under Section 3.2(a) shall nonetheless continue to apply
to any such Licensed Real-Time Thermal Cycler made in the United States but
sold or placed in a country where the EP ‘562 Patent or a Counterpart contains
a Valid Claim covering such Licensed Real-Time Thermal Cycler.

 

(e)                                  Upon the date of
expiration of the EP ‘562 Patent, or in the event that there is no longer a
Valid Claim in the EP ‘562 Patent covering a particular Licensed Real-Time
Thermal Cycler or its manufacture, the royalty amount specified in Section 3.2(a) will
be reduced to [***] for each such Licensed Real-Time Thermal Cycler that
thereafter is made in a Designated Contracting State (i.e., country in which
the EP ‘562 Patent had effect) and sold or placed in a country (including such
Designated Contracting State) where there is a Valid Claim under any remaining
Real-Time Apparatus Patent Rights that covers such Licensed Real-Time Thermal
Cycler.  For the avoidance of doubt, even
after the EP ‘562 Patent expires or no longer contains a Valid Claim covering
such particular Licensed Real-Time Thermal Cycler or its manufacture, the [***]
per unit royalty under Section 3.2(a) shall nonetheless continue to
apply to any such Licensed Real-Time Thermal Cycler made in a Designated
Contracting State but sold or placed in a country where the ‘934 Patent or a
Counterpart contains a Valid Claim covering such Licensed Real-Time Thermal
Cycler.

 

(f)                                    Reduction of the
royalty amount pursuant to Section 3.2(d) or (e) will not affect
the royalty amount payable on sales or transfers in other territories.  Thus, for example, after expiration of the ‘934
Patent, sales of Licensed Real-Time Thermal Cyclers in Europe will be subject
to the full payment required by Section 3.2(a) if covered by a Valid
Claim in the EP ‘562 Patent.

 

(g)                                 Nothing in this Section 3.2
is intended to require payment of royalties on any Real-Time Thermal Cycler the
manufacture, use or sale of which is not covered by a Valid Claim of a
Real-Time Apparatus Patent Right. Thus, for 

 

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                                                example, if, after expiration of the EP
‘562 Patent, no remaining Real-Time Apparatus Patent Right covers the manufacture, use or sale of Real-Time
Thermal Cyclers in Europe, no royalties will be payable on sales, lease or placement
in Europe of Real-Time Thermal Cyclers unless they are made under a Valid Claim
of a Real-Time Apparatus Patent Right in another territory.

 

(h)                                 In the event that
Siemens or an Affiliate operates a laboratory which bills Third Parties for
performance of assays by Siemens or such Affiliate using a Licensed Real-Time
Thermal Cycler in the HIVD Field, Siemens shall pay to Celera a royalty of
[***] for each such Licensed Real-Time Thermal Cycler upon transfer of any
Licensed Real-Time Thermal Cycler to such laboratory.

 

3.3                                 Licensed
Reagent Product.

 

(a)                                  Siemens shall pay to
Celera [***] of the Net Sales Price of all Licensed Reagent Products sold,
transferred, used or otherwise disposed of by or for Siemens.

 

(b)                                 A sale shall be deemed to have been made when
such transaction is invoiced to a Third Party. 
Except as provided in Section 3.3(c), sales of Licensed Reagent
Product between or among Siemens and its Affiliates shall not be included in
Net Sales Price; however, such Licensed Reagent Product once sold by Siemens or
an Affiliate to a Third Party shall be included in Net Sales Price.

 

(c)                                  In the event that
Siemens or an Affiliate operates a laboratory which bills Third Parties for
performance of an assay by Siemens or such Affiliate using a Licensed Reagent
Product in the HIVD Field, the Net Sales Price for such Licensed Reagent
Product shall be equal to the average per unit Net Sales Price for sales of
such Licensed Reagent Product in the country in which such assay is performed
during the quarter in which such assay is performed, or, if such Licensed
Reagent Product is not sold for commercial use in such country during such
quarter, the worldwide average per unit Net Sales Price for sales of such
Licensed Reagent Product for such quarter, or, if such Licensed Reagent Product
is not sold commercially in any country, 25% of the gross revenue invoiced by
the laboratory for performance of the assay. 
For purposes of this Section 3.3(c), the Licensed Reagent Product
will be deemed sold on the date that its use by the laboratory is invoiced to
the Third Party.

 

3.4                                 Currency.  All amounts payable hereunder shall be
payable in United States dollars.  Sales
in other countries shall be converted to U.S. dollars using the method used by Siemens for internal
financial reporting purposes in accordance with United States generally
accepted accounting principles, consistently applied.

 

3.5                                 Maintenance
of Records; Audit.  Siemens shall
keep, and shall require its pertinent Affiliates to keep, full, true and
accurate records containing all particulars necessary to calculate the amount
payable to Celera under this Agreement and to demonstrate Siemens’ (and its
Affiliates’) compliance with its obligations under this Agreement for five (5) years
after the close of each calendar year. 
Upon thirty (30) days prior written request of Celera, and not more than
once per calendar year, such records and the 

 

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                                                supporting
data shall be open during ordinary business hours, for five (5) years
following the end of the calendar year to which they pertain (and access shall
not be denied thereafter, if reasonably available), to the inspection of an
independent certified public accounting firm retained by Celera (and reasonably
approved in advance by Siemens).  Such
accounting firm will hold such records and supporting data in strict
confidence, and shall provide to Celera only the information necessary to
verify the calculation of amounts due hereunder, providing to Siemens a copy of any preliminary and final
reports contemporaneously with providing such reports to Celera.  Such reports to Celera shall be limited to a
description of the procedures performed, whether Siemens’ calculations are
accurate, and a description of any discrepancies in sufficient detail to permit
the Parties to discuss appropriate remedies while preserving to the greatest
extent possible the confidentiality of business sensitive information of
Siemens.  If in dispute, such records
shall be kept until the later of five (5) years or the dispute is
settled.  Inspection shall be at Celera’s
expense, unless the inspector concludes that the amount payable over the entire
period audited is understated by five percent (5%) or more, in which case the
reasonable cost of the audit shall be paid by Siemens.

 

3.6                                 Royalty
Payments and Royalty Reports. 
Beginning after the First Commercial Sale, Siemens shall within thirty
(30) days after the first of January, April, July and October deliver
to Celera the monies then due under Sections 3.2 and 3.3 for the preceding
quarter and a true and accurate accounting report in accordance with this Section 3.6.  The report shall state for the relevant
calendar quarter:

 

(a) For Licensed
Real-Time Thermal Cyclers (i) the number sold, placed, leased or
transferred (x) under a reagent rental program in each of the United
States, Europe, and the rest of the world, (y) not under a reagent rental
program in each of the United States, Europe, and the rest of the world, and (z) to
laboratories operated by Siemens or its Affiliates, and (ii) the
calculation of royalties due on Licensed Real-Time Thermal Cyclers in each of
the United States, Europe and the rest of the world, and

 

(b) For Licensed
Reagent Products (i) the Net Sales Price for Arm’s-Length Sales pursuant
to Section 1.10(a) for those sales not made under then current
reagent rental program, (ii) the calculation of Net Sales Price for
distributors pursuant to Section 1.10(b), (iii) the calculation of
Net Sales Price pursuant to Section 1.10(c), (iv) the calculation of
the Average Net Sales Price pursuant to Section 1.10(d), and (v) the
calculation of Net Sales Price pursuant to Section 3.3(c), and (vi) the
calculation of royalties due on Licensed Reagent Products.

 

3.7                                 Tax
Withholding.  Withholding tax, if
any, levied by a government of any country on amounts received by Siemens,
shall be borne by Siemens. No payment made by Siemens to Celera pursuant to the
terms of this Agreement shall be reduced for any taxes.

 

3.8                                 Royalty
Report and Payment Address.  Each
report shall be sent by the due date to the following address:

 

Celera

1401 Harbor Bay Parkway

Alameda, California, 94502 U.S.A.

Attention: Controller, Finance Department

 

 

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or to any
address that Celera may advise in writing. 
In addition, Siemens agrees to promptly provide an electronic copy of
any such report by e-mail upon written request by Celera.

 

Each payment
shall be sent by wire transfer on the due date to the following account:

 

	
  Beneficiary
  Bank:

  	
   

  	
  JPMorgan
  Chase

  
	
   

  	
   

  	
  New York, NY

  
	
  ABA No.

  	
   

  	
  021-000-021

  
	
  Swift Code:

  	
   

  	
  CHASUS33

  
	
  Account
  Name:

  	
   

  	
  Applera
  Corporation

  
	
  Account No.

  	
   

  	
  304-165-255

  
	
  For Benefit
  Of:

  	
   

  	
  Celera

  
	
  Reference:

  	
   

  	
  License
  Agreement

  

 

3.9                                 Interest.  If Siemens fails to pay any amount owing
under this Agreement by the due date, the amount owed shall bear interest,
compounded quarterly, at the relevant 90 Day LIBOR lending rate as published by
the Wall Street Journal from the due date until paid, provided, however, that
if this interest rate is held to be unenforceable for any reason, the interest
rate shall be the maximum rate allowed by law at the time the payment is due.

 

4.                                      License
Notice

 

4.1                                 Patent
Notice.  Siemens shall mark each
Licensed Real-Time Thermal Cycler and include prominently in the front of the
corresponding user’s manual, but not any other Thermal Cycler or manual
therefor, a Notice to User as follows:

 

NOTICE TO USER

 

This
instrument is licensed for use solely in the field of human in vitro
diagnostics under Applera Corporation’s United States Patent No. 6,814,934
and corresponding claims in non-U.S. counterparts thereof.  No other field of use is permitted. No right
is conveyed expressly, by implication or by estoppel under any other patent
claim, such as claims to apparatus, reagents, kits, or methods such as 5’
nuclease methods.

 

From time to
time during the term hereof, Celera may request reasonable changes to such
Notice, and Siemens shall implement such reasonable changes in a manner and in
such time as is reasonable in the context of the Siemens products and
processes.

 

4.2                                 Patent
Marking.  Siemens shall mark each
Licensed Real-Time Thermal Cycler, each Licensed Component and each Licensed
Reagent Product with the applicable patent numbers in Licensed Patent Rights in
accordance with applicable law.

 

5.                                      Term
and Termination

 

5.1                                 Term.  This Agreement (and the licenses and royalty
obligations hereunder), unless sooner terminated pursuant to this Article 5,
shall continue until the date of expiration 

 

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                                                of
the last-to-expire of the Licensed Patent Rights and the patent rights that are
the subject of the covenant set forth in Section 2.6.

 

5.2                                 Termination
by Siemens.  Siemens may terminate
this Agreement for any reason by giving written notice to Celera and ceasing to
label, advertise or promote its Real-Time Thermal Cyclers as Licensed Real-Time
Thermal Cyclers and ceasing to distribute Licensed Components and Licensed
Reagent Products.  Such termination shall
be effective forty-five (45) days after said notice (“Sec. 5.2 Effective
Termination Date”), during which time Siemens shall either sell or destroy its
remaining inventory of Licensed Real-Time Thermal Cyclers, Licensed Components
and Licensed Reagent Products.  Within
fifteen (15) days after such termination, Siemens shall provide Celera with a
royalty report and payment as per Article 4 along with a certification
signed by a company officer that Siemens no longer has any inventory of
Licensed Real-Time Thermal Cyclers, Licensed Components or Licensed Reagent Products.  In the event Siemens terminates this
Agreement pursuant to this Section 5.2, all installments due pursuant to Section 3.1
after the Sec. 5.2 Effective Termination Date will be cancelled, provided,
however, that Siemens pays to Celera all installments due before the Sec. 5.2
Effective Termination Date.

 

5.3                                 Partial
Termination.  In the event there is
no Valid Claim in U.S. Patent No. 6,814,934 or in European Patent EP
0872562 B1, Siemens may elect to terminate the license in the territory covered
by either patent (U.S. or Europe) without terminating this Agreement in its
entirety by providing written notice to Celera. 
Such termination shall be effective forty-five (45) days after said
notice (“Sec. 5.3 Effective Termination Date”). In the event Siemens partially
terminates this Agreement in a territory (U.S. or Europe) pursuant to this Section 5.3,
all installments due pursuant to Section 3.1 after the Sec. 5.3 Effective
Termination Date will be reduced by [***], provided, however, that Siemens pays
to Celera the full amount of all installments due before the Sec. 5.3 Effective
Termination Date.  Partial termination by
Siemens of the license under U.S. Patent No. 6,814,934 in the U.S. or
European Patent EP 0872562 B1 in Europe will not affect the license under
remaining Real-Time Apparatus Patent Rights in the same territory, the
Real-Time Apparatus Patent Rights in the other territory, and the Livak Patent
Rights in either territory.

 

5.4                                 Insolvency.  This Agreement shall terminate immediately
without Siemens having a right to cure upon (i) an adjudication of Siemens
as bankrupt or insolvent, or Siemens’ admission in writing of its inability to
pay its obligations as they mature; (ii) an assignment of any of its
rights or obligations under this Agreement by Siemens for the benefit of
creditors; (iii) the appointment of, or Siemens’ applying for or
consenting to the appointment of, a receiver, trustee or similar officer for a
substantial part of its property; (iv) the institution of or any act of
Siemens instituting any bankruptcy, insolvency arrangement, or similar
proceeding; or (v) the issuance or levy of any judgment, writ, warrant or
attachment or execution or similar process against a substantial part of the
property of Siemens.

 

5.5                                 Termination
for Siemens’ Material Breach.  In the
event Siemens materially breaches this Agreement, then without limiting Celera’s
legal or equitable remedies, this Agreement shall terminate automatically sixty
(60) days after Celera provides notice thereof to Siemens provided that Siemens
fails to cure such material breach within such sixty (60) day period.  Any failure by Siemens to perform any payment
obligation, or provide a timely and compliant royalty report, as and when due under

 

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this Agreement, shall be
deemed a material breach of this Agreement, subject to cure as stated herein,
except that the third or any subsequent occurrence of a material failure under
this sentence shall not be subject to cure, if Celera so specifies in its
notice to Siemens.

 

5.6           Termination
on Challenge.  Celera may terminate
this Agreement in all countries in the Territory where such termination is
legally permissible and enforceable under applicable  law, effective immediately upon written
notice of termination to Siemens, in the event that Siemens, either directly or
indirectly, initiates, engages, assists others or participates in a challenge
to the validity, enforceability or priority (whether by or through a
declaratory judgment action, interference, reexamination, opposition, nullity
or other action or proceeding) of any of the Licensed Patent Rights in any
country in the Territory.

 

5.7           Effect
of Termination or Expiration.  Upon
termination or expiration of this Agreement, all rights granted to Siemens
shall revert to or be retained by Celera.

 

5.8           Siemens’
Obligations Surviving Termination. 
The following rights and obligations shall survive termination or
expiration of this Agreement:  (a) Siemens’
obligations to (i) report and pay accrued fee installments and royalties
under this Agreement, (ii) maintain
confidentiality as provided under Section 6.2, and (iii) maintain
records required for the purposes of Section 3.5; and (b) Celera’s
right to audit under Section 3.5.

 

6.             Advertisements;
Publicity; Confidentiality

 

6.1           Advertisements.  Siemens shall not promote, e.g., in
advertisements, catalogs, brochures, sales literature and promotional
literature, the use of Licensed Real-Time Thermal Cyclers or Licensed Reagent
Products in fields outside of the HIVD Field. In the event that Siemens learns
or is given notice that Licensed Real-Time Thermal Cyclers or Licensed Reagent
Products are being used substantially by a Third Party purchaser outside of the
HIVD Field, Siemens must, within thirty (30) days after learning of such use,
send written notice to such Third Party purchaser, with a copy to Celera, that
such off-label use is contrary to the Section 4.1 Notice to User. Nothing
herein is intended to, or should be construed to, restrict Celera and its
Affiliates in enforcing its patents rights against such Siemens’ Third Party
purchaser for any off-label use at any time.

 

6.2           Confidentiality.  Each Party shall maintain the confidentiality
of the provisions of this Agreement and shall refrain from disclosing the terms
of this Agreement without the prior written consent of the other Party, except
to the extent: (a) such disclosure is required under applicable law or
regulation, or by subpoena, order or other requirement of a court,
administrative agency, or other competent governmental body, provided that (i) such
disclosure is limited to the information that must be so disclosed under such
applicable law or regulation or subpoena, order or other requirement; and (ii) the
affected Party notifies the other Party of such requirement and the text of the
proposed disclosure at least thirty (30) days before such proposed disclosure
is required or in any event as far in advance of the date of disclosure as is
reasonably possible and allows such other Party a reasonable opportunity to
comment upon, object or seek a 

 

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protective
order or other injunctive relief to prevent or limit such disclosure, or (b) reasonably necessary to be disclosed in
connection with due diligence related to a possible acquisition, merger,
consolidation, substantial asset transfer, or similar transaction of a Party,
provided that the Third Party recipient is bound to respect to the confidential
information disclosed by legal obligations no less restrictive that those set
forth herein. The Parties have agreed to the text of an initial press
release regarding the grant of the license hereunder, a copy of which is
attached hereto as Exhibit 6.2. 
Notwithstanding the above, the Parties may disclose to any Third Party
for any reason the existence of this Agreement and its scope as embodied in
Sections 1.4, 1.6, 1.7, 1.8, 1.9, 1.12, 1.13, 1.14, 2.1, 2.2, 2.3, 2.3,  2.5, and 2.6.

 

7.             Compliance
and Quality

 

7.1           Compliance
with Applicable Law.  In the exercise
of any and all rights and in performance hereunder, it shall be the duty of
Siemens, not Celera, to comply fully with all applicable laws, regulations and
ordinances and to obtain and keep in effect licenses, permits and other
governmental approvals (federal, state or local) necessary or appropriate to
carry on activities hereunder.

 

7.2           No
Endorsement.  Celera does not approve
or endorse any Real-Time Thermal Cycler of Siemens in any way or for any
purpose, including for real-time PCR. 
Quality and quality control with respect to suitability for real-time
PCR, according to standards and requirements that may exist in the marketplace
from time to time, are the sole responsibility of Siemens.

 

8.             Assignment

 

8.1           Assignment
by Siemens.  This Agreement (and the
licenses granted hereunder) is personal in nature.  This Agreement and the rights hereunder are
non-delegable and non-assignable by Siemens without the prior written approval
of Celera, provided, however, that Siemens may assign this Agreement, without
Celera’s prior approval, to an Affiliate or to a Third Party that acquires all
or substantially all of the assets and business of Siemens relating to the
detection, measurement or other determination of nucleic acid sequences in the
HIVD Field.  Such assignment will be
effective upon written agreement by the Affiliate or Third Party to be bound by
all terms of this Agreement and to assume all Siemens liabilities accrued as of
the date of such assignment.  Siemens
shall give Celera notice of the assignment and the original of such agreement
by the Affiliate or Third Party within thirty (30) days after such assignment.
Siemens’ failure to deliver to Celera notice of the assignment and the original
of such agreement by the Affiliate or Third Party within thirty (30) days of
the assignment renders such assignment void. Without limiting the foregoing,
this Agreement cannot be assumed or assumed and assigned by a trustee or
debtor-in-possession in bankruptcy as set forth in Section 365(c)(1) of
the United States Bankruptcy Code or any similar provisions of state or federal
law.  Any assignment or attempted
assignment (except as permitted under this Section 8.1) shall be void ab initio and result in the immediate and automatic
termination of this Agreement without any requirement or notice or other action
by Celera.

 

8.2           Assignment
by Celera.  Celera may assign all or
any part of its rights and obligations under this Agreement at any time without
the consent of Siemens.  Siemens agrees
to 

 

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execute such
further acknowledgements or other instruments as Celera may reasonably request
in connection with such assignment.

 

9.                                      Warranties,
Representations and Indemnification

 

9.1                                 No
Warranty; No Implied Rights.  Nothing
in this Agreement shall be construed as

 

	
  (a)

  	
   

  	
  a warranty or representation by Celera as
  to the validity, enforceability or scope of any patent;

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  a warranty or representation that anything
  made, used, sold, or otherwise disposed of pursuant to this Agreement is or
  will be free from infringement of patents or other intangible rights of Third
  Parties;

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  an obligation by Celera to file any patent
  application, secure any patent, or maintain any patent in force;

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  any obligation of Celera to prosecute,
  enforce or license its patent rights to (or against) Third Party infringers;

  
	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  except as expressly set forth herein,
  conferring upon Siemens the right to use in advertising, publicity or
  otherwise, in any form, the name of, or any trademark or trade name of,
  Applera, Celera or any of its Affiliates;

  
	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  granting by implication, estoppel, or
  otherwise, any license, immunity or rights under patents, trade secrets,
  know-how, copyrights, or other intangible rights of Celera other than the
  Licensed Patent Rights and any patent rights subject to the covenant in
  Section 2.6 regardless of whether any such patent or intangible right is
  dominant or subordinate to the patents under which rights are granted in this
  Agreement;

  
	
   

  	
   

  	
   

  
	
  (g)

  	
   

  	
  an obligation to furnish any know-how or
  technical information; or

  
	
   

  	
   

  	
   

  
	
  (h)

  	
   

  	
  creating any agency, partnership, joint
  venture or similar relationship between Celera and Siemens.

  

 

9.2                                 EXCEPT
AS EXPRESSLY STATED HEREIN (INCLUDING SIEMENS’ INDEMNIFICATION OBLIGATIONS
UNDER SECTION 9.3 BELOW), EACH PARTY, RESPECTIVELY, DOES NOT MAKE AND EXPRESSLY
DISCLAIMS ANY EXPRESS OR IMPLIED WARRANTIES OF ANY KIND (INCLUDING, WITHOUT
LIMITATION, ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE
OR NONINFRINGEMENT) WITH RESPECT TO THE LICENSED PATENT RIGHTS, THE PRACTICE OF
THE LICENSE HEREUNDER OR THE MAKING, USING OR SELLING OF PRODUCTS LICENSED
HEREUNDER.  IN NO EVENT WILL EITHER PARTY
OR ITS AFFILIATES BE LIABLE FOR ANY SPECIAL, PUNITIVE, INCIDENTAL OR
CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT LIMITATION LOST PROFITS).

 

9.3                                 Indemnification.  Siemens shall assume full responsibility for
its operation under the Licensed Patent Rights, the manufacture of Licensed
Real-Time Thermal Cyclers, Licensed Components and Licensed Reagent Products
and the use thereof, and shall 

 

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defend, indemnify and
hold Celera harmless from and against all liability, demands, damages, expenses
(including attorneys’ fees) and losses resulting or arising from (a) claims
by Third Parties of infringement or misappropriation of intellectual property rights,
or (b) claims of death, personal injury, illness, property damage or any
other injury or damage, including any damages or expenses arising in connection
with state or federal regulatory action, in view of the use by Siemens, its
officers, directors, agents and employees of the Licensed Patent Rights and the
manufacture and use of Licensed Real-Time Thermal Cyclers, Licensed Components
and Licensed Reagent Products, except that Siemens shall not be liable to
Celera for injury or damage arising solely because of Celera’s negligence.

 

9.4                                 Celera
Representations and Warranties.  Celera represents and warrants to Siemens that
Celera is the sole and exclusive owner of all right, title and interest in the
Licensed Patent Rights, and such Licensed Patent Rights are not subject to any
encumbrance, lien or claim of ownership by any Third Party that would encumber
the rights granted to Siemens in this Agreement.  Celera warrants that it has the
unrestricted right and power to enter into this Agreement and to grant the
licenses provided hereunder to Siemens without conflict or creating breach or
default of any law, order of a court or governmental agency, contract, or other
obligation with any Third Party.  Celera
shall defend, indemnify and hold Siemens harmless from and against all
liability, demands, damages, expenses (including attorneys’ fees) and losses
arising from any failure or other breach of
the representations and warranties by Celera as set forth in this Section 9.4.

 

9.5                                 Siemens
Warranties.  Siemens represents and
warrants that it will not promote, e.g., in advertisements, catalogs,
brochures, sales literature and promotional literature, the use of Licensed Real-Time
Thermal Cyclers or Licensed Reagent Products in fields outside of the HIVD
Field.  Any violation of the foregoing
representation and warranty is a material breach of this Agreement. Further,
Siemens acknowledges and agrees that except for the license as set forth herein
Siemens does not have any valid licenses or valid license defense to or under
any of the Licensed Patent Rights.

 

10.                               General

 

10.1         Integration.  This Agreement and a letter to Bayer
HealthCare LLC relating to the consent from Celera to Bayer HealthCare LLC (a
copy of which is attached hereto as Exhibit 10.1) for assignment of the
Sequence Analysis License Agreement, dated April 20, 2000, as amended on July 1,
2003 and September 8, 2003, to Siemens constitutes the entire agreement
between the Parties as to the subject matter hereof, and all prior
negotiations, representations, agreements and understandings are merged into,
extinguished by and completely expressed by it. 
This Agreement may be modified or amended only by a writing executed by
authorized officers of each of the Parties.

 

10.2                           Notices.  Any notice required or permitted to be given
by this Agreement shall be given by postpaid, first class, registered or
certified mail, or by overnight courier or by facsimile, properly addressed to
the other Party at the respective address as shown below:

 

16

 

* Confidential Treatment
Requested by Celera Corporation*

 

If to Celera:

 

Celera

1401 Harbor Bay Parkway

Alameda, California 94502 U.S.A.

Attention: Chief Business Officer

Fax No.:  510-749-6200

 

If to Siemens:

 

Siemens Medical Solutions Diagnostics

511 Benedict Avenue

Tarrytown, New York 10591 U.S.A.

 

Attention: Law & Patents

 

Fax No.:  914-524-3594

 

Either Party
may change its address by providing notice to the other.  A notice shall be deemed given four (4) full
business days after the day of mailing, or one full day after the date of
delivery to the courier, or the date of facsimile transmission, as the case may
be.

 

10.3         Governing
Law and Venue.  This Agreement shall
be deemed made in the State of New York, and it shall be construed and enforced
in accordance with the law of the State of New York.  The Parties agree that the exclusive
jurisdiction and venue for resolving disputes arising from this Agreement shall
be in the state or federal courts in New York.

 

10.4         Conflicting
Provisions.  Nothing in this
Agreement shall be construed to require the commission of any act contrary to
law, and wherever there is any conflict between any provision of this Agreement
or concerning the legal right of the Parties to enter into this contract and
any statute, law or ordinance, the latter shall prevail, but the provision
shall be limited only to the extent necessary.

 

10.5         Severability.  If any provision hereof should be held
invalid, illegal or unenforceable in any respect, then, to the fullest extent
permitted by applicable law: (a) all other provisions hereof shall remain
in full force and effect and shall be liberally construed in order to carry out
the intent of the Parties as nearly as may be possible, and (b) the
Parties agree to negotiate in good faith a provision, in replacement of the
provision held invalid, illegal or unenforceable, that is consistent with
applicable law and accomplishes, as nearly as possible, the original intention
of the Parties with respect thereto.  To
the fullest extent permitted by applicable law, each Party hereby waives any
provision of law that would render any provision hereof prohibited or
unenforceable in any respect.

 

10.6         Construction.  The captions and headings of this Agreement
are for convenience of reference only and in no way define, describe, extend or
limit the scope or intent of this Agreement or the intent of any provision
contained in this Agreement.  Each Party
hereto and its counsel have participated fully in the review and negotiation of
this Agreement.  Both Parties have
participated equally in the formation of this Agreement; the language of this
Agreement shall not be presumptively construed against either Party.

 

17

 

* Confidential
Treatment Requested by Celera Corporation*

 

10.7         Independent
Contractors.  It is expressly agreed
that the Parties, shall be independent contractors and that the relationship
between the Parties shall not constitute a partnership, joint venture or
agency.

 

10.8         Waiver.  The waiver by either Party hereto of any
right hereunder or the failure to perform or a breach by the other Party shall
not be deemed a waiver of any other right hereunder or of any other breach or
failure by said other Party whether of a similar nature or otherwise.

 

10.9         Counterparts.  This Agreement may be executed (including via
facsimile) in two (2) or more counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same
instrument.

 

10.10       No
Third Party Beneficiaries.  The
representations, warranties, covenants, rights and obligations set forth in
this Agreement are for the sole benefit of the Parties and their successors and
permitted assigns, and they shall not be construed as conferring any rights on
any Third Parties.

 

10.11       Bankruptcy
Code 365(n).  The Parties acknowledge
and agree that this Agreement is a license of rights to “intellectual property”
as defined under Section 101(56) of the United States Bankruptcy
Code.  Except as expressly permitted by
this Agreement, this Agreement cannot be assumed and assigned by a trustee or
debtor-in-possession in bankruptcy as set forth in Section 365(c)(1) of
the United States Bankruptcy Code, or any similar provisions of state or
federal law.

 

10.12       Export
Control Regulations.  The rights and
obligations of the Parties under this Agreement shall be subject in all
respects to United States laws and regulations as shall from time to time
govern the license and delivery of technology and products abroad, including
the United States Foreign Assets Control Regulations, Transaction Control
Regulations and Export Control Regulations, as amended, and any successor legislation
issued by the Department of Commerce, International Trade Administration, or
Office of Export Licensing.  Without in
any way limiting the provisions of this Agreement, each Party agrees that,
unless prior authorization is obtained from the Office of Export Licensing, it
will not export, re-export, or transship, directly or indirectly, to any
country, any of the technical data disclosed to it by the other Party hereto if
such export would violate the laws of the United States or the regulations of any
department or agency of the United States Government.

 

18

 

* Confidential Treatment
Requested by Celera Corporation*

 

IN WITNESS WHEREOF, The Parties
hereto have duly executed this Agreement on the date(s) indicated below.

 

 

	
   

  	
  APPLERA
  CORPORATION

  	
   

  
	
   

  	
  through its
  CELERA GROUP

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Joel Jung

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  Assistant
  Controller, Applera Corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
      9/26/07

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SIEMENS
  MEDICAL SOLUTIONS DIAGNOSTICS

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
    /s/
  Anthony Bihl

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
  CEO

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Date:

  	
      9/28/07

  	
   

  
						

 

19

Exhibit 6.2 [to Agreement]

 

* Confidential Treatment
Requested by Celera Corporation*

 

Celera
(NYSE:CRA), an Applera Corporation business, announced today that it has
entered into agreements with Siemens Medical Solutions Diagnostics which
include a license conferring rights in the human in vitro
diagnostics field to the Applera patents for real time PCR thermalcycling
instruments and reagents.  The financial details of these agreements were
not disclosed.

 

20

Exhibit 10.1 [to Agreement]

 

* Confidential Treatment Requested by Celera Corporation*

 

	
   

  	
   

  	
  CELERA

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  An
  Applera Corporation Business

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1401
  Harbor Bay Parkway, Alameda, CA 94502

  
	
   

  	
   

  	
  phone
  510 749 4200  fax 510 749 5200

  
	
   

  	
   

  	
  www.celera.com

  

 

Bayer HealthCare LLC

555
White Plains Road

Tarrytown, NY 10591

Attention: General Counsel

 

September 27, 2007 

Dear Sir:

 

With reference to Section 10.1
of the Sequence Analysis License Agreement, dated April 20, 2000, as
amended on July 1, 2003 and September 8, 2003 (“Agreement”), and
subject only to the following paragraph, Applera Corporation (successor in
interest to PE Corporation), acting through
its Celera Group, hereby grants Bayer HealthCare LLC the right to assign the Agreement to Siemens Medical Solutions Diagnostics
in conjunction with transfer of the assets of the diagnostics business
of Bayer HealthCare LLC to Siemens Medical Solutions Diagnostics. Such
assignment shall be retroactively effective as of January 1, 2007.

 

The right to assign the Agreement as granted herein is subject to
receipt by Celera of a written agreement by Siemens Medical Solutions
Diagnostics to be bound by the terms and conditions of the Agreement from and after January 1, 2007, including without
limitation, prompt reporting and payment of any royalties accruing since
January 1, 2007.

 

Sincerely,

 

/s/ Joel R. Jung

Joel R. Jung

Assistant Controller,
Applera Corporation

 

 

	
  cc:

  	
  Siemens Medical
  Solutions Diagnostics

  
	
   

  	
  Law &
  Patents

  
	
   

  	
  511 Benedict
  Avenue

  
	
   

  	
  Tarrytown, NY
  10591

  
	
   

  	
   

  
	
   

  	
  Attn: Vice
  President, Patents & Licensing

  

 

21

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