Document:

PATENT SUBLICENSE AGREEMENT

 Exhibit 10.3 
 [CONFIDENTIAL TREATMENT REQUESTED] /*/ INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 
 PATENT SUBLICENSE AGREEMENT, 

This Agreement, by and between IMPRA, Inc., an Arizona corporation (hereinafter called LICENSOR), and Endomed, Inc., also an Arizona corporation
(hereinafter called LICENSEE), effective as of Match 7, 2003, 
 WITNESSETH THAT: 
 WHEREAS, LICENSOR holds certain license rights under United States Patent No. 6,436,135, including the right to grant sublicenses; and 

WHEREAS, LICENSEE desires to acquire a nonexclusive sublicense under said Patent; 
 NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained. LICENSOR and LICENSEE agree as follows: 
 Section 1. Definitions. 
 1.1. “Sublicensed Patent” shall mean United States Patent No. 6,436,135 issued to David Goldfarb, MD. on August 20, 2002, and any reissues and/or any reexaminations thereof. 
 1.2. “Licensed Products” shall mean products (i) that LICENSEE makes, has made, uses, imports, sells, leases, or offers for
sale, (ii) that are covered by a Valid Claim of the Sublicensed Patent, and (iii) that are within the Field of Use. 
 1.3. “End User(s)” shall mean the hospital or other entity or person that purchases a Licensed Product for intended use in a human patient. 
 1.4. “Distributor(s)” shall mean any entity or other person, other than an Affiliate of Licensee, which purchases finished
Licensed Products from LICENSEE or an Affiliate of LICENSEE solely for the purpose of resale to an End User without any addition, modification or alteration to the Licensed Product or its packaging. 
 1.5. “OEM Customer(s)” shall mean (i) any entity or other person which purchases or otherwise obtains from LICENSEE or an
Affiliate of LICENSEE a product or product component for the purpose of adding to, modifying, altering, or finishing such product or its packaging, or combining it with other products, prior to sale thereof by said OEM Customer, or (ii) any
entity or other person which purchases or otherwise obtains from LICENSEE or an Affiliate of LICENSEE a product made to specifications that are particular to that entity or person. 

 1.6. “Field of Use” shall mean the field of endovascular products: i.e.,
medical products that are placed within the arteries or veins of the human body. The Field of Use expressly excludes any surgical prosthetic device intended in whole or in part to replace any portion of any artery, vein or other vessel or conduit
within the human body, including but not limited to bypass grafts, dialysis grafts, aortic grafts or thoracic grafts. 
 1.7.
“Net Annual Sales” shall mean the total of Net Annual Domestic Sales and Net Annual Foreign Sales as hereinafter defined. 
 1.7.1 Except as provided in section 1.7.3, “Net Annual Domestic Sales” shall mean the total of: 
 (i) the
total gross invoiced price of all Licensed Products sold or otherwise transferred by LICENSEE or any Affiliate of LICENSEE to an End User in the United States during a specific calendar year, less (a) any discounts or rebates actually allowed
and taken, (b) any separately stated taxes, freight, insurance, customs duties or other similar charges, and (c) any credits actually issued for rejected or returned products; and 
 (ii) in the case of all Licensed Products that are sold to a Distributor located in the United States or to any Distributor located
outside the United States who resells Licensed Products to any End Users in the United States, the Distributor’s total gross invoiced price to its End User customers for such Licensed Products, less (a) any discounts or rebates actually
allowed and taken, (b) any separately stated taxes, freight, insurance, customs duties or other similar charges, and (c) any credits actually issued for rejected or returned products. 
 1.7.1.2 If any Licensed Products are sold or otherwise transferred by LICENSEE, any Affiliate of Licensee or a Distributor to End Users
as part of a kit or other assemblage of products, then in such cases “Net Annual Domestic Sales” shall be calculated on the basis of the total gross invoiced price to the End User for such kits or other product assemblage. 
 1.7.1.3 In the event that Licensed Products are transferred by LICENSEE, any Affiliate of LICENSEE, or a Distributor to an End User other
than by an outright sale requiring full payment within thirty (30) days of shipment, and under circumstances other than those listed in section 1.7.3, said Licensed Products shall be deemed to have been “sold” at the transferor’s
then-current list price for sale of such products to End Users. 
 1.7.1.4 “Net Annual Domestic Sales” shall
exclude (a) the gross invoiced price of Licensed Products supplied by LICENSEE exclusively for use in clinical trials being conducted in the United States pursuant to an approved investigational device exemption (IDE) for the purpose of
obtaining U.S. Food & Drug Administration approval for the sale of such Licensed Products for particular indications, and (b) any Licensed Products supplied free of charge solely to comply with LICENSEE’s warranty obligations.

 1.7.1.5 In the event that any Licensed Products (or kits or other product assemblages including Licensed Products)
(hereinafter “royalty-bearing products”) are 

  

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sold or otherwise transferred as part of a group or “bundle” of products that includes products which are not royalty-bearing products, or pursuant
to a discount arrangement or other price adjustment that includes products which are not royalty-bearing products, the “Net Annual Domestic Sales” of such royalty-bearing products shall be computed as follows. (i) The actual average
discount (in percentage terms) for the royalty-bearing products sold or otherwise transferred as part of such an arrangement during the course of the royalty period at issue shall be determined. (ii) The actual average discount (in percentage
terms) for the other, non-royalty-bearing sold or otherwise transferred as part of such an arrangement during the course of the royalty period at issue shall also be determined. (iii) If the average percentage discount for such royalty-bearing
products (D 1) is greater than the average percentage discount for the non-royalty-bearing products (D2), the actual Net Annual Domestic Sales of the royalty-bearing products so sold or transferred shall be adjusted by multiplying that figure by the
following fraction: [CONFIDENTIAL TREATMENT REQUESTED] /*/. The resulting figure shall be included in the Net Annual Domestic Sales reported by LICENSEE and shall form the royalty base for royalty payments due on such sales or transfers. 

1.7.2 “Net Annual Foreign Sales” 
 1.7.2.1 Except as provided in section 1.7.2.3, “Net Annual Foreign Sales” shall mean 
 (i) the total gross invoiced price of all Licensed Products sold or otherwise transferred by LICENSEE or an Affiliate of LICENSEE to an
End User located outside the United States, less (a) any discounts or rebates actually allowed and taken, (b) any separately stated taxes, freight, insurance, customs duties or other similar charges, and (c) any credits actually
issued for rejected or returned products; and 
 (ii) in the case of Licensed Products sold or otherwise transferred by
LICENSEE or an Affiliate of LICENSEE to a Distributor located outside the United States for resale to End Users located outside the United States, LICENSEE’s or its Affiliate’s total gross invoiced price to such Distributor, less
(a) any discounts or rebates actually allowed and taken, (b) any separately stated taxes, freight, insurance, customs duties or other similar charges, and (c) any credits actually issued for rejected or returned products. 

1.7.2.2 If any Licensed Products are sold or otherwise transferred by LICENSEE, or any Affiliate of Licensee to an End User or a
Distributor located outside the United States as part of a kit or other assemblage of products, then in such cases “Net Annual Foreign Sales” shall be calculated on the basis of the total gross invoiced price to the End User for such lilts
or other product assemblage. 
 1.7.2.3 In the event that Licensed Products are transferred by LICENSEE or any Affiliate of
LICENSEE to an End User or a Distributor located outside the United States other than by an outright sale requiring fill payment within thirty (30) days of shipment, said Licensed Products shall be deemed to have been “sold” at the
transferor’s then-current list price for sale of such products to End Users. 
  

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 1.7.2.4 In the event that any Licensed Products (or kits or other product assemblages
including Licensed Products) (hereinafter “royalty-bearing products”) are sold or otherwise transferred to End Users or Distributors outside the United States as part of a group or “bundle” of products that includes products
which are not royalty-bearing products, or pursuant to a discount arrangement or other price adjustment that includes products which are not royalty bearing products, the “Net Annual Foreign Sales” of such royalty-bearing products shall be
computed as follows. (i) The actual average discount (in percentage terns) for the royalty-bearing products sold or otherwise transferred as part of such an arrangement during the course of the royalty period at issue shall be determined.
(ii) The actual average discount (in percentage terms) for the other, non-royalty-bearing sold or otherwise transferred as part of such an arrangement during the course of the royalty period at issue shall also be determined. (iii) If the
average percentage discount for such royalty-bearing products (D1) is greater than the average percentage discount for the non-royalty-bearing products (D2), the actual Net Annual Foreign Sales of the royalty-bearing products so sold or transferred
shall be adjusted by multiplying that figure by the following fraction: [CONFIDENTIAL TREATMENT REQUESTED] /*/. The resulting figure shall be included in the Net Annual Foreign Sales reported by LICENSEE and shall form the royalty base for royalty
payments due on such sales or transfers. 
 1.8. “Affiliate” shall mean any person or entity that LICENSEE or any
shareholder(s) of LICENSEE directly or indirectly controls, through one or more intermediaries or otherwise, or which is controlled by or is under common control with LICENSEE. As used herein, “control” means the possession, directly or
indirectly, of the power to director cause the direction of the management or policies of the controlled entity, whether through ownership of capital stock, by contract, or otherwise. “Affiliate” shall also include, but not be limited to,
the entities identified as “Insiders” in that certain Stock Purchase Agreement of even date herewith by and between Endomed, Inc. and C.R. Bard, Inc. 
 1.9. “Valid Claim” shall mean a claim of the Sublicensed Patent which, at the time a sale is made has not been held
unenforceable or invalid or otherwise finally rejected by a decision of a court or other governmental agency of competent jurisdiction, which decision is no longer subject to a right of appeal or other judicial review, and which has not been
disclaimed or admitted to be invalid by LICENSOR. 
 1.10. “United States” shall mean all fifty states and all
foreign possessions or dependencies of the United States, including Puerto Rico, the U.S. Virgin Islands and Guam. 
 Section 2. Scope of
License. 
 2.1. LICENSOR hereby grants to LICENSEE a personal, nonexclusive sublicense under the Sublicensed Patent to
make, have made for its own account, use, and import Licensed Products, and to sell, lease, offer for sale and otherwise transfer Licensed Products as hereinafter provided. LICENSEE or an Affiliate of Licensee may sell or transfer Licensed Products
directly to End Users. LICENSEE or, in the event that LICENSEE first sells or transfers Licensed Products to any Affiliate of LICENSEE, such Affiliate, may also sell or transfer Licensed Products to Distributors for resale to End Users; provided,
however, that any such Distributor must resell the Licensed Products to End Users in unchanged form, and 

  

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provided further, that there shall be [CONFIDENTIAL TREATMENT REQUESTED] /*/ distribution channel for Licensed Products ([CONFIDENTIAL TREATMENT REQUESTED]
/*/) in any specific country in the world. This sublicense specifically excludes any right of LICENSEE (or any Affiliate or Distributor of LICENSEE) to sell or otherwise transfer Licensed Products to OEM Customers. 
 2.1.1 This Agreement and all rights granted hereunder are personal to LICENSEE except to the extent specifically hereinafter provided.
LICENSEE shall have no right to further sublease its rights hereunder. 
 2.1.2 LICENSEE understands and agrees that,
notwithstanding the License Agreement between LICENSEE and its Affiliate Transform Technologies, L.L.C. (“Transform”), neither Transform nor any successor-in-intent or assignee or transferee of Transform has or will hereafter acquire any
rights with respect to the Sublicensed Patent or any rights or licenses under this Agreement. 
 2.2. This Agreement shall not
be construed to grant LICENSEE any license or other rights except as specifically contained herein, and is strictly limited to the defined Field of Use. No license or other right is granted herein to either party, directly or by implication,
estoppel or otherwise, with respect to any trade secrets or know-how of the other, and no such license or other right shall arise from the execution or performance of this Agreement or from any acts, statements or dealings loading to such execution
or performance. Except as specifically stated herein, neither party is required to furnish o r disclose to the other any technical or other information. Neither party shall use or refer to the name, logo or trademarks of the other in any form of
advertising or promotion, written or oral. 
 Section 3. Royalty Obligations. 
 3.1. Except as hereinafter provided, LICENSEE shall pay to LICENSOR a royalty on the Net Annual Sales of all Licensed Products during each
calendar year in accordance with the following royalty rate schedule: 
  

			
	 [*] $[*] /*/million of Net Annual Sales
	    	[*] /*/%
	 [*] $[*] /*/million (to $[*] million)
	    	[*] /*/%
	 [*] $[*] /*/million (to $[*] million)
	    	[*] /*/%
	 [*] $[*] /*/million (to $[*] million)
	    	[*] /*/%
	 [*] $[*] /*/million (to $[*] million)
	    	[*] /*/%
	 [*] $[*] /*/million (to $[*] million)
	    	[*] /*/%
	 [*] sales over $[*] /*/million
	    	[*] /*/%

 [*] [CONFIDENTIAL TREATMENT REQUESTED] 
  

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 The above schedule shall start anew on January 1 of each calendar year. 
 3.1.1 Minimum Royalties on Sales to Distributors Located Outside the U.S. for Resale to End Users outside the U.S. Notwithstanding the
foregoing, if the per-unit royalty calculated on any sale of Licensed Products by LICENSEE or an Affiliate of LICENSEE to a Distributor pursuant to Sections 1.7.2.1(ii), 1.7.2.2 and/or 1.7.2.4 is less than the minimum royalty applicable to such sale
as set forth below, then LICENSEE shall pay to LICENSOR such minimum royalty in lieu of the calculated royalty: 
 Minimum Royalties on
Foreign Distributor Sales: 
  

			
	 [CONFIDENTIAL TREATMENT REQUESTED] /*/ Products
	  	 $[CONFIDENTIAL TREATMENT REQUESTED] /*/ per unit

	 [CONFIDENTIAL TREATMENT REQUESTED] /*/ Products
	  	 $[CONFIDENTIAL TREATMENT REQUESTED] /*/ per unit

	 [CONFIDENTIAL TREATMENT REQUESTED] /*/ Products
	  	 $[CONFIDENTIAL TREATMENT REQUESTED] /*/ per unit

	 [CONFIDENTIAL TREATMENT REQUESTED] /*/ Products (for [CONFIDENTIAL TREATMENT REQUESTED] /*/ uses)
	  	 $[CONFIDENTIAL TREATMENT REQUESTED] /*/ per unit

	 [CONFIDENTIAL TREATMENT REQUESTED] /*/ Products
	  	 $[CONFIDENTIAL TREATMENT REQUESTED] /*/ per unit

	 [CONFIDENTIAL TREATMENT REQUESTED] /*/ Products
	  	 $[CONFIDENTIAL TREATMENT REQUESTED] /*/ per tout

 If an adjustment is hereafter made to the royalty schedule pursuant to Section 3.4 hereof, the minimum
royalties set forth in this Section 3.1.1 shall be proportionately adjusted to the extent that the adjusted royalty rate is less than [CONFIDENTIAL TREATMENT REQUESTED] /*/%. In the event that LICENSEE sells or develops a Licensed Product that
does not fall within any of the above categories (a “Nora-Listed Licensed Product”), LICENSOR and LICENSEE shall negotiate in good faith an appropriate minimum royalty for sales of such Non-Listed Licensed Product that are subject to
Section 1.7.2.1(ii), 1.7.2.2 and/or 1.7.2.4. Such minimum royalty shall in no event be less than the greater of (1) [CONFIDENTIAL TREATMENT REQUESTED] /*/% of the Net Annual Foreign Sales for such Non-Listed Licensed Product, or
(2) [CONFIDENTIAL TREATMENT REQUESTED] /*/% of the applicable Distributor’s average End User selling price for such Non-Listed Licensed Product (subject to any adjustment made pursuant to Section 3.4, if applicable). 
  

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 3.2. LICENSEE’s obligation to pay royalties with respect to the products currently
being sold by LICENSEE shall be retroactive to the issuance of the Sublicensed Patent, notwithstanding the later execution of this Agreement. 
 3.3. Royalty payments shall be due and payable no later than [CONFIDENTIAL TREATMENT REQUESTED] /*/ ([CONFIDENTIAL TREATMENT REQUESTED] /*/) days following the end of each calendar quarter with respect to sales made
(or deemed to have been made pursuant to Sections 1.7.2 or 4.1 hereof) during said calendar quarter and any prior sales on which a royalty due hereunder has not been paid. Except as provided in Section 1.7.2, sales to an End User shall be
deemed to have been made on the date of shipment. 
 3.4. LICENSEE shall have, at its option, the right to replace the royalty
schedule set forth in Section 3.1 hereof or the method of calculating the royalty base (defined in this Agreement as “Net Annual Sales”) with any more favorable sublicense royalty rate or royalty base calculation method hereafter
granted in the same Field of Use by LICENSOR or any assignee or successor of LICENSOR for sales to End Users, except that (i) such right shall not extend to any royalty rate or royalty base calculation method contained in any sublicense granted
to any affiliate of LICENSOR or to [CONFIDENTIAL TREATMENT REQUESTED] /*/ or in any sublicense granted as part of a bona fide cross-licensing arrangement or in settlement of a claim, and (ii) to the extent that LICENSOR or its assignee or
successor grants a more favorable sublicense royalty rate or royalty base calculation method that is limited to some portion of the Field of Use, LICENSEE shall be entitled to such more favorable rate or method only with respect to products sold in
said limited portion of the Field of Use. Any cross-licensing arrangement shall be deemed to be bona fide unless LICENSOR’s purpose in entering such cross-license was to avoid its obligations under this subparagraph. LICENSEE shall have the
burden of establishing that a cross-licensing arrangement was not bona fide. 
 3.4.1 In the event that LICENSOR grants any
sublicense to another entity or person that includes all or any portion of the Field of Use, LICENSOR shall provide its outside auditors with a copy of said sublicense and this Agreement, and shall request said auditors to determine whether, as a
result of said sublicense, LICENSEE is entitled to a more favorable sublicense rate or more favorable royalty base calculation method pursuant to the provisions of Section 3.4 above. Upon completion of their review, the auditors will provide
LICENSEE with a letter notifying LICENSEE that a sublicense has been entered (but not disclosing the name of the sublicensee thereunder or the terms of said sublicense) and stating whether or not LICENSEE is entitled to an adjustment of its
sublicense rate or to the method of calculating its royalty base and, if so, the amount of that adjustment. The comparison between the third party sublicense and this Agreement shall be made on the basis of the royalty obligations viewed as a whole.

 3.5. LICENSEE shall be liable for interest on any overdue royalty payments, commencing on the date any such payment becomes
due, at an annual rate which is the greater of ten percent (10%) or one percentage point higher than the prime interest rate as quoted by the head office of Citibank, New York, New York, at the close of banking on such date, or on the fast business
day thereafter if such date falls on a non-business day. If such interest rate exceeds the maximum legal rate in the jurisdiction where a claim therefor is being asserted, the interest rate shall be reduced to such maximum legal rate, to the extent
that such interest rates are subject to the laws of such jurisdiction. 
  

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 3.6. In the event an audit under the provisions of Section 4 hereof identifies an
underpayment of royalties by LICENSEE, LICENSEE shall pay an amount equal to such underpayment within [CONFIDENTIAL TREATMENT REQUESTED] /*/ days of LICENSOR’s written request together with the interest due on such amount pursuant to the
provisions of Section 3.5 above. 
 Section 4. Royalty Accruals, Payment, Reports and Records. 
 4.1. Royalties shall accrue when a Licensed Product is first sold or otherwise transferred to an End User. However, if a Distributor shall
not have sold or otherwise transferred any Licensed Products to an End User within [CONFIDENTIAL TREATMENT REQUESTED] /*/ ([CONFIDENTIAL TREATMENT REQUESTED] /*/) days of shipment by LICENSEE or any Affiliate of LICENSEE to the Distributor, such
Licensed Products shall be deemed to have been sold by such Distributor on the [CONFIDENTIAL TREATMENT REQUESTED] /*/ ([CONFIDENTIAL TREATMENT REQUESTED] /*/) day at a price equivalent to the Distributor’s average selling price to End Users
during the prior calendar quarter, or, if such price cannot be determined, at LICENSEE’s actual average or recommended selling price to End Users. 
 4.2. LICENSEE shall make all royalties and other payments due hereunder in United States dollars. All royalties for an accounting period computed in other currencies shall be converted into United States dollars at
the exchange rate for bank transfers from such currency to United States dollars as quoted by the head office of Citibank, New York, New York, at the close of banking on the last day of such accounting period (or the first business day thereafter if
such last day shall be a non-business day). 
 4.3. The accounting period for royalty payments shall be each calendar quarter
within a calendar year Within [CONFIDENTIAL TREATMENT REQUESTED] /*/ ([CONFIDENTIAL TREATMENT REQUESTED] /*/) days after the end of each such quarter LICENSEE shall furnish to LICENSOR a written report containing the information specified in
Section 4.4 and shall pay to LICENSOR all unpaid royalties accrued hereunder through the end of each such quarter. 
 4.4. LICENSOR’s written report shall be certified by an officer of LICENSEE and shall contain the following information. 
 4.4.1 The report shall (i) identify by verbal description and product code number of each Licensed Product upon which royalty has accrued, and with respect to each such Licensed Product, (ii) shall set forth
separately the gross and net quantities, by units and invoiced amount, sold or otherwise transferred by each of LICENSEE, any Affiliate of LICENSEE and any Distributor(s) dining the accounting period, and (iii) shall set forth the manner in
which the royalties due with respect thereto has been calculated, identifying any situations to which the royalty provisions of Section 3.1.1 are applicable, and 
 4.4.2 The report shall also provide an explanation or other reconciliation of the gross and pet data for units transferred and invoiced
amounts. 
  

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 4.4.3 In the event no royalties are due, LICENSEE’s report shall so state and
explain why. 
 4.5. Payment shall be made by electronic funds transfer on or before, the date that payment is due. All
payments shall be made in U.S. dollars, with payments of royalties based on sales made in other currencies to be calculated, as of the end of the calendar quarter for which royalties are being calculated, based on the applicable average exchange
rate quoted by the Wall Street Journal for the last business day of the calendar quarter for which such royalty payments are being calculated. 
 4.6. If LICENSEE shall contend that any endovascular product that LICENSEE makes, has made or imports and that is comprised in whole or in part of ePTFE should not be considered a Licensed Product for purposes of this
Agreement, LICENSEE shall promptly so notify LICENSOR and shall provide LICENSOR with a detailed statement of reasons explaining LICENSEE’s position. Such notification shall be accompanied by full and complete copies of any technical reports or
other technical data on which LICENSEE is relying. Thereafter, within [CONFIDENTIAL TREATMENT REQUESTED] /*/ ([CONFIDENTIAL TREATMENT REQUESTED] /*/) days of a written request by LICENSOR, LICENSEE shall (i) provide to LICENSOR or its designee
a copy of any materials (including, but not limited to manufacturing specifications, manufacturing drawings, manufacturing process, information, brochures and service, use and other technical manuals) relevant to determining whether any such product
identified by LICENSOR is subject to this Agreement; and (ii) deliver to LICENSOR or its designee a reasonable number of representative examples of the product at issue. 
 4.6.1 Information and materials provided to LICENSOR pursuant to this Section 4.6 shall be deemed to be confidential, and their
dissemination may, at LICENSEE’s request, be limited to designated persons, provided that under no circumstances shall LICENSOR be prevented from obtaining outside technical or legal assistance to determine whether the product at issue is
subject to this Agreement. 
 4.7. LICENSEE shall prepare and retain records in sufficient detail to permit the determination
of products subject to this Agreement, the royalties due LICENSOR, and the accuracy of the information on LICENSEE’s written reports. Such records shall include, but not be limited to, detailed sales records supporting the information provided
under Section 4.4. To the extent such records are prepared in the ordinary course of LICENSEE’s business, they shall be prepared in accordance with generally accepted accounting principles. Any records of a financial nature shall be
retained for a minimum period of [CONFIDENTIAL TREATMENT REQUESTED] /*/ ([CONFIDENTIAL TREATMENT REQUESTED] /*/) years following the reporting period to which they pertain. 
 Section 5. Audit Rights. 
 5.1. Upon LICENSOR’s written request for an audit on at least [CONFIDENTIAL TREATMENT REQUESTED] /*/ ([CONFIDENTIAL TREATMENT REQUESTED] /*/) business days’ notice prior to the date on which such audit would commence, LICENSEE
will permit LICENSOR’s outside auditors, working with such outside legal and technical support personnel as said auditors deem necessary, to examine, during ordinary business hours, any documents or other information reasonably necessary to
enable such auditors to determine whether LICENSEE has complied with its royalty obligations 

  

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hereunder. LICENSOR shall not be entitled to invoke its audit rights more than once each calendar year, provided that any previous audit was satisfactory.

 5.1.1 LICENSEE agrees to provide full cooperation in such audit. 
 5.1.2 LICENSOR shall pay the cost of such audit. However, in the event that the audit reveals underpayment by five percent (5%) or more of
the royalties which should have been paid for any of the accounting periods being audited, then LICENSEE shall pay for the reasonable cost of such audit. LICENSEE shall have the burden of establishing that the actual cost assigned by the auditor was
unreasonable. 
 5.1.3 LICENSOR and its auditors shall treat as confidential to LICENSEE any information which LICENSOR or its
auditors obtain from LICENSEE in connection with sections 4.4, 4.6 and 5.1 hereof. However: 
 5.1.3.1 LICENSOR’s
outside auditors shall have the right to discuss such information which pertains to a customer or supplier of LICENSEE with such customer or supplier, and 
 5.1.3.2 LICENSOR shall have the right to use such information in a court of law, in or in other similar proceedings to establish its rights to royalties due. 
 Section 6. Restrictions on Sublicensing, Transfer and Assignment. 
 6.1. LICENSEE shall have not have the right to grant any further sublicense hereunder. 
 6.2. This Agreement is personal to LICENSEE, and shall not be transferred or assigned except in connection with (i) the sale of all
of the stock of LICENSEE or (ii) the sale of all or substantially all of the assets of LICENSEE. LICENSOR shall be given at least [CONFIDENTIAL TREATMENT REQUESTED] /*/ ([CONFIDENTIAL TREATMENT REQUESTED] /*/) days’ written notice of any
such proposed or contemplated transfer or assignment In the event of a permitted transfer or assignment, the royalty schedule set forth in section 3.1 hereof shall be of no further force or effect and the royalty thereafter payable hereunder shall
be a flat [CONFIDENTIAL TREATMENT REQUESTED] /*/ % on Net Annual Sales, subject only to the [CONFIDENTIAL TREATMENT REQUESTED] /*/ set forth in Section [CONFIDENTIAL TREATMENT REQUESTED] /*/ hereof. 
 6.2.1 Except as hereinafter provided, this Section 6.2 permits only a one-time transfer or assignment of this Agreement by LICENSEE
and only under the aforesaid conditions. Thereafter, the transferee or assignee shall have no further right to transfer or assign this Agreement, or any interest herein, without the prior express written consent of LICENSOR. For purposes of the
preceding sentence, any sale or transfer by such transferee or assignee of more than 30% of its stock or capital interest to any person or entity, or to any affiliated group of persons or entities, shall be deemed a transfer requiring the prior
consent of LICENSOR. Notwithstanding the first two sentences of this Section 6.2.1., this Agreement may be further transferred or assigned to a single surviving successor LICENSEE (a “Permitted Successor”); provided, however, that
upon the occurrence of the first such further transfer or assignment, the 

  

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Field of Use within which any such Permitted Successor may exercise its rights hereunder shall, without further action by or notification from LICENSOR, be
thenceforth be limited to endovascular products that are solely for abdominal and/or thoracic indications and that have an internal diameter of more than 12 millimeters. 
 6.2.2 Any transferee or assignee shall, following a transfer or assignment, be deemed to be the LICENSEE, and shall have the same
obligations as LICENSEE had prior thereto, and its rights shall be subject to all limitations set forth herein. Any affiliate of such transferee or assignee shall be deemed an Affiliate of Licensee for purposes of this Agreement. 
 Section 7. Limited Warranty; Enforcement of Patent. 
 7.1. LICENSOR represents and warrants that it has the full right and power to grant the sublicense described in Section 2. Except for the foregoing, LICENSOR makes no other representations or warranties, express
or implied, including without limitation any representation or warranty with respect to the scope, validity or enforceability of any patent rights licensed hereunder, or any representation or warranty that anything made, sold or otherwise disposed
of under the sublicense granted by this Agreement is or will be free from infringement of patent or other rights of third parties. LICENSOR does not assume any liability in respect of any infringement of patents or other rights of third parties due
to LICENSEE’s operation under the sublicense herein granted. 
 7.2. In the event that LICENSEE is sued by a third party
for alleged infringement of a third party patent, LICENSEE shall defend such action at its sole cost and expense and shall be solely responsible for paying such damages or other amounts as may be awarded. 
 7.3. LICENSEE agrees to bring promptly to the attention of LICENSOR any conduct by a third party that LICENSEE believes may constitute
infringement of the Sublicensed Patent by such third party. However, LICENSOR shall not have any obligation hereunder to institute any action or suit against third parties for infringement of the Sublicensed Patent or to defend any action or suit
brought by a third party which challenges or concerns the validity of the Sublicensed Patent. LICENSOR’s election not to institute or defend such action shall not be deemed to constitute any admission with respect to the scope of the
Sublicensed Patent or otherwise, and shall not create any right that is enforceable by LICENSEE. 
 7.4. In the event that
LICENSOR shall institute an action for infringement against any third party with respect to the Sublicensed Patent or shall defend an action for declaratory judgment with respect thereto, LICENSEE shall fully cooperate with LICENSOR and provide such
assistance as may be reasonably requested. 
 7.5. LICENSEE shall not have any right to institute any action or suit against
third parties for infringement of the Sublicensed Patent. 
 7.6. LICENSEE acknowledges the validity and enforceability of the
Sublicensed Patent. 
  

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 Section 8. Limitation of Liability. 
 8.1. Under no circumstances shall either party be entitled to recover from the other any incidental, consequential, indirect, special,
exemplary or punitive damages in connection with any action arising out of or relating to this Agreement, whether based on contract, tort or any other theory of action, even if such patty has been informed or should have known of the possibility of
such damages. 
 Section 9. Term and Termination. 
 9.1. Unless sooner terminated as hereinafter provided, and subject to the provisions of Section 9.8 below, this Sublicense Agreement
shall have a term co-extensive with the term of the Sublicensed Patent. 
 9.2. LICENSOR may terminate this went for cause if
(i) LICENSEE shall fail at any time to make any report, pay any royalties that are due and payable hereunder, permit or cooperate with a requested audit, or otherwise fail to comply with its obligations hereunder, unless such failure is cured
(and any applicable interest is paid) within sixty (60) days after written notice from LICENSOR to LICENSEE specifying the nature of such failure or (ii) LICENSEE or any of its Affiliates shall at any time and in any way, formally or
informally, directly or indirectly through their attorneys or otherwise, initiate or voluntarily participate in or provide any assistance in connection with legal or administrative proceedings by any person or entity challenging the validity or
enforceability of the Sublicensed Patent, or (iii) if LICENSEE fails to respect the limitations on its rights set forth in Section 2 hereof. 
 9.2.1 Any such termination shall be effected by LICENSOR’s giving written notice to LICENSEE, and shall be effective on the fifteenth day after the termination notice is given. The fifteen (15) day delay in the
effectiveness of termination shall not extend the cure period. 
 9.2.2 LICENSEE shall not be deemed responsible for decisions
by individual physicians to use a Licensed Product outside the Field of Use, provided that LICENSEE has designed, intended and promoted such Licensed Product solely for use within such Field of Use, and provided further that LICENSEE has not, after
learning of such use, knowingly supplied or continued to supply Licensed Product to any such physician or other End User with which such physician is associated. 
 9.3. LICENSEE may terminate the license granted herein in the event that all claims of the Sublicensed Patent are finally determined,
after entry of a final judgment which is no longer subject to appeal or judicial review, to be invalid or unenforceable. Such termination shall be effective on the date that written notice of such termination is mailed. LICENSEE shall not, however,
be entitled to any refund of any royalties paid prior to the date of such notice, nor shall LICENSEE be entitled to withhold payment of royalties pending the outcome of any proceedings relating to the validity or enforceability of the Sublicensed
Patent. Any such withholding shall constitute a for-cause basis for termination of this Agreement. 
  

 12 

 9.4. In the event that more than thirty percent (30%) of LICENSEE’s securities
representing the right to vote for the election of directors are now, or hereafter become, owned or controlled, directly or indirectly, by any persons or entities other than the present shareholders of LICENSEE, LICENSEE shall promptly give written
notice to LICENSOR of such acquisition. Unless the acquisition is permitted by section 6.2 hereof, LICENSOR may terminate the license by giving written notice to be effective fifteen (15) days after the date thereof. For purposes of this
Section 9.4, transfers of securities originally issued to C.R. Bard, Inc. or its affiliates in connection with the stock purchase being undertaken by Bard simultaneously with the execution of this Agreement shall not be taken into account
unless such stock is then owned by LICENSEE, any Affiliates of LICENSEE, or any of the present shareholders of LICENSEE. 
 9.5. No termination pursuant to this Section 9 shall relieve LICENSEE of any obligation or liability accrued hereunder prior to such termination, or rescind or give rise to any right to rescind anything done by LICENSEE or any payments
made or other consideration given to LICENSOR hereunder prior to the time such termination becomes effective, and such termination shall not affect in any manner any rights of LICENSOR arising under this Agreement prior to such termination.

 9.6. No failure or delay by either party in exercising its right of termination hereunder shall be construed to prejudice
its right of termination for any continuing default or for any other or subsequent default. In the event of the termination of this Agreement for any reason whatsoever LICENSEE shall forthwith cease to exploit all of its sublicense rights hereunder
and shall not thereafter exploit any such rights in any manner whatsoever, except that if on termination LICENSEE has any stock of Licensed Products, it will have a period of six (6) months to sell such Licensed Products to End Users, provided that
this is done in the normal course of business and on normal commercial terms, and any such sale shall be subject to all the tam and conditions of this Agreement as though it were in full force and effect, including payment of royalties hereunder. In
the event that, following termination, LICENSEE sells any Licensed Products to any person or entity other than an End User, royalties shall due on such sales as if such sales had been made at LICENSEE’s average U.S. selling price to hospital
customers during the year immediately prior to termination. 
 9.7. No termination of this Agreement shall release LICENSEE
from its obligation to report and to pay to LICENSOR any royalties or other consideration which shall have accrued up to the time such termination becomes effective, nor shall such termination release either party hereto from any other liability
which at said time had already accrued to the other party, nor rescind anything done or any payment or other consideration made or given to either party, nor effect in any way the survival of any right, duty or obligation which is expressly stated
elsewhere in this agreement to survive termination. 
 9.8. The provisions of Sections 3.5, 3.6, 4.1 through 4.7, 5, 7.2, 7.6,
8, 9.7, 10, 11 and 12 shall survive termination of this Agreement in addition to those provisions that survive by their terms. 
  

 13 

 Section 10. Confidentiality. 
 10.1. Except as maybe required bylaw, legal processor a regulatory authority, neither party shall disclose to any third party any of the
terms or conditions of this Agreement without the prior written consent of the other, provided, however, that LICENSOR or LICENSEE may represent to others that the parties have executed a sublicense agreement with respect to the Sublicensed Patent,
and that either party may disclose the content of the Agreement to its outside legal counsel or its outside auditors provided that it does so in confidence. Either party may also disclose the Agreement to a bank in connection with bank financing,
provided that the bank first agrees in writing to maintain the confidentiality of the Agreement. 
 Section 11. Dispute Resolution.

 11.1. The parties agree to use their best efforts to handle all disputes, claims or controversies arising under, out of, or
in connection with this Agreement in good faith and in an expeditious and cost-effective manner. The parties shall first attempt to resolve any dispute amicably between themselves by arranging an in-person meeting between executives with
decision-making authority within 45 days of a request by either party for such a meeting. 
 11.2. If the parties fail to
resolve such dispute, then either party may take such other action as such party deems appropriate in its sole discretion, except that the party alleged to have breached its obligations hereunder shall not file suit for declaratory judgment for a
period of at least sixty (60) days following the conclusion of the parties’ discussions. 
 Section 12. Miscellaneous
Provisions. 
 12.1. This Agreement shall be construed, and the legal relations between the parties hereto shall be
determined, in accordance with the law of the State of Arizona, except to the except that performance of this Agreement involves issues of patent law, in which case such issues shall be resolved in accordance with the patent law of the United
States. 
  

 14 

 12.2. Any notice or other communication required or permitted to be made or given to
either party hereto pursuant to this Agreement shall be sent to such party both by facsimile and by overnight delivery by Federal Express or other recognized courier service addressed to the address set forth below, or to such other address as it
may hereafter designate by written notice given to the other party. Payments shall be deemed to be made on the date of electronic funds transfer. Notices or other communications shall be deemed to have been given or provided on the date of sending.
The addresses are as follows: 
 12.2.1 For electronic funds transfers to LICENSOR: 
 Wells Fargo Bank 
 64 East Broadway 
 Tempe, AZ 85281 
 Account name: [CONFIDENTIAL TREATMENT REQUESTED] /*/ 
 Account: [CONFIDENTIAL TREATMENT REQUESTED] /*/ 
 Routing #[CONFIDENTIAL TREATMENT REQUESTED] /*/ 
 Swift #[CONFIDENTIAL TREATMENT REQUESTED] /*/ 
 12.2.2 For overnight delivery to LICENSOR 
 President 
 IMPRA, Inc. 
 1625 West 3 Street 
 Tempe, AZ 85280-1740 
 with a copy to 
 General Counsel 
 C.R Bard, Inc. 
 731 Central Avenue 
 Murray Hill, NJ 07974 
 12.2.3 For facsimile transmission to LICENSOR: 
 (480) 966-7062 
 Attention: President, IMPRA, Inc. 
 with a copy to 
 (908) 277-8025 
 Attention: General Counsel, C.R. Bard, Inc. 
 12.2.4 For overnight delivery to LICENSEE: 
 William M. Colone, President 
 Endomed, Inc. 
 10220 South 51st Street, #1 
 Phoenix, AZ 85044 
 with a copy to: 
 Michael A. Sitzman, Esq. 
 Gibson, Dunn & Crutcher 
 1 Montgomery Street 
 San Francisco, CA 94101 
  

 15 

 12.2.5 For facsimile transmission to LICENSEE: 
 (480) 753-1271 
 Attention: William Colone 
 with a copy to: 
 (415) 986-5309 
 Attention: Michael A. Sitzman, Esq. 
 12.3. Nothing contained in this Agreement shall be construed as conferring on
either party any license or other right to copy or imitate the exterior design or packaging of the products of the other party. 
 12.4. The parties hereto are independent contractors, and nothing herein shall be construed as establishing any agency, partnership, joint venture or employment relationship between the parties. 
 12.5. Nothing contained in this Agreement shall be construed as conferring any right to use in advertising, publicity, or other
promotional activities any name, trade name, trademark or other designation of either party hereto (including any contraction, abbreviation or simulation of any of the foregoing). Each party hereto agrees not to use or refer to this Agreement or any
provision thereof in any promotional activity associated with apparatus licensed hereunder, without the express written approval of the other party. 
 12.6. Nothing contained in this Agreement shall be construed as limiting the rights which the parties have outside the scope of the sublicense granted hereunder. 
 12.7. Neither party nor any of its subsidiaries or affiliates shall be required hereunder to file any patent application, or to secure any
patent or patent rights, or to maintain any patent in force, or to provide copies of patent applications to the other party or its subsidiaries or affiliates, or to disclose any inventions described or claimed in such patent applications.

 12.8. This Agreement will not be binding upon the parties until it has been signed by or on behalf of each party, in which
event it shall be effective as of the date of this Agreement first above written. No amendment or modification hereof shall be valid or binding upon the patties unless made in writing and signed by the party sought to be charged. 
 12.9. This Agreement embodies the entire understanding of the parties with respect to subject matter of this Agreement and/or the
Sublicensed Patent, and merges all prior discussion between them, and neither of the parties shall be bound by any conditions, definitions, understandings or representations with respect to the subject matter hereof other than as provided herein.

 12.10. No act or omission by either party hereto shall be deemed to be a waiver of any right hereunder unless such act or
omission represents an express, intentional and 

  

 16 

 
unambiguous surrender of such right, and no such waiver on any one or more occasions shall be deemed to constitute a waiver with respect to any other similar
occasions. 
 12.11. If any provision of this Agreement is found by competent authority to be invalid, illegal or
unenforceable in any respect for any reason, there shall be substituted in lieu of each vision a valid, legal and enforceable provision which shall be as similar as possible in its and business objectives to those explicit or implicit in the
original. If the intent of the parties cannot be preserved, this Agreement shall be either renegotiated or terminated. 
 12.12. The heading of the several Sections are inserted for convenience of reference only are not intended to be a part of or to affect the meaning or interpretation of this Agreement. 
  

 17 

 IN WITNESS WHEREOF, the parties, by their officers duly authorized thereunto, have executed this
Agreement as of the date first above written. 
  

									
		 		 	 IMPRA, Inc., an Arizona Corporation
 (“LICENSOR”)

					
	Witness 	 	/S/    [ILLEGIBLE]        	 		 	 By
	 	/s/    Timothy M. Ring        
		 		 		 		 	 Name: Timothy M. Ring

		 		 		 		 	 Title: Vice President

			
		 		 	 Endomed, Inc., an Arizona Corporation
 (“LICENSEE”)

					
	Witness 	 	/S/    [ILLEGIBLE]        	 		 	 By
	 	/s/    Edward B. Diethrich        
					
		 		 		 	 Title
	 	     Secretary

  

 18LICENSE AGREEMENT

 Exhibit 10.5 
 [CONFIDENTIAL TREATMENT REQUESTED] /*/ INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE
COMMISSION PURSUANT TO RULE 406 PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. 
 LICENSE AGREEMENT 
 This AGREEMENT (hereinafter “Agreement”) effective as of February 11, 1992 (“Effective Date”), by and between United States
Surgical Corporation, a corporation organized and existing under the laws of the State of Delaware, having executive offices at 150 Glover Avenue, Norwalk, Connecticut 06856 (hereinafter “USSC”) and SPINNAKER R&D ASSOCIATES, a general
partnership organized and existing under the laws of the State of New Mexico, having offices at 5300 DTC Parkway, Suite 270, Englewood, Colorado, 80111, on behalf of itself, the University of New Mexico, and the Inventors, Wolff M. Kirsch, M.D.,
Yong Hua Zhu, M.D., and Robert B. Cushman, (hereinafter “INVENTORS”), together owners of all of the PATENTS RIGHTS and other rights herein transferred, (altogether hereinafter referred to as “LICENSOR”). 
 W I T N E S S E T H: 
 WHEREAS, LICENSOR has developed and is continuing to develop surgical clips for joining vessels and the like and applicators useful in applying such
clips and has filed U.S. and foreign patent applications and has received certain U.S. and foreign patents relating to such clips and applicators; 
 WHEREAS, LICENSOR is desirous of continuing the development of such clips and applicators to see that such products are placed in the marketplace through an appropriate licensing arrangement; 
 WHEREAS, USSC develops and markets surgical products, including wound closure products; 

 WHEREAS, USSC desires to manufacture, distribute and sell new surgical products and expand the
availability of such surgical products; 
 WHEREAS, both parties desire to work together, calling on their respective areas of expertise, in
order to develop and hopefully market such clips and applicators under the terms and conditions hereinafter set forth; and 
 WHEREAS, the
parties desire to enter into a license agreement; 
 NOW, THEREFORE, in consideration of the premises and faithful performance of the
covenants herein contained, the parties follows. 
 ARTICLE I - DEFINITIONS 
 For the purposes of this Agreement, the terms set forth in Article I hereof shall be defined as follows: 
 A. “SURGICAL CLIP TECHNOLOGY” means all of the patented or unpatented, patentable or unpatentable, scientific and technical information
and know-how created and developed by the INVENTORS during or previous to this Agreement relating to arrangements and techniques for surgical clips and applicators therefor, and includes, but is not limited to, the technology shown, described, and
claimed in the patents and patent applications set forth in Exhibit A, attached hereto and incorporated herein. 
 B. “LICENSED
PRODUCT” means any apparatus, product, or device within the SURGICAL CLIP TECHNOLOGY which includes or encompasses intellectual property rights which will be or have been transferred from LICENSOR to USSC under this Agreement. 

C. “LICENSED PROCESS” means any process, method, or technique within the SURGICAL CLIP TECHNOLOGY which includes or encompasses
intellectual property rights which will be or have been transferred from LICENSOR to USSC under this Agreement. 
  

 2 

 D. The terms “MICRO CLIP,” “MEZZO CLIP,” and “MACRO
CLIP” and relate only to sizes and dimensions of surgical clips. 
 E. “IMPROVEMENTS” shall mean any development,
refinement or modification of the SURGICAL CLIP TECHNOLOGY first conceived and reduced to practice solely by the INVENTORS. 
 F.
“PATENT” OR “PATENT RIGHTS” are equivalent terms and shall mean any patent issuing on a patent application existing as of the EFFECTIVE DATE drawn to an invention within the SURGICAL CLIP TECHNOLOGY and covering a
LICENSED PRODUCT, a LICENSED PROCESS or TECHNICAL INFORMATION including, without limitation, the patents and patent applications set forth on Exhibit A and any reissue, reexamination, revalidation or registration patents and patents of addition
based thereon and any later filed divisional, continuation, or reissue applications claiming priority therefrom and any patents issuing on said applications, and also any patent issuing on any later filed continuation-in-part application directed to
substantially the same type of invention as that claimed in any patent or patent application listed on Exhibit A. 
 G.
“IMPROVEMENT PATENT” means any patent issuing on a patent application which comes into existence on or after the EFFECTIVE DATE drawn to an invention within the SURGICAL CLIP TECHNOLOGY covering a LICENSED PRODUCT, a LICENSED
PROCESS or TECHNICAL INFORMATION and any reissue, reexamination, revalidation or registration patents and patents of addition based thereon and any later filed divisional, continuation, or reissue applications claiming priority therefrom and any
patents issuing on said applications, and also any patent issuing on a later filed patent application which is a 

  

 3 

 
continuation in part of any of the aforesaid patent applications and directed to substantially the same type of invention as that claimed in any such patent
application. 
 H. “TECHNICAL INFORMATION” shall mean all proprietary, trade secret information and knowledge of a
scientific or technical nature, whether or not patentable, within the SURGICAL CLIP TECHNOLOGY originated by and in the possession of the LICENSOR previous to or during the term of this Agreement. 
 I. “AFFILIATE” shall mean any corporation or organization which directly or indirectly controls, is or will be controlled by or is or
will be under common control with a party to this Agreement by means of the ownership, directly or indirectly, of 50% or more of the voting stock or analogous interest in such corporation or organization. 
 J. “NET SALES” shall mean the aggregate of sales of ROYALTY PRODUCTS by USSC and by any AFFILIATE and/or sublicensee of USSC calculated
as the gross sales invoiced and shipped to customers for sales, leases or uses of ROYALTY PRODUCTS, less discounts actually allowed, invoices written off as uncollectible, credits for returns and allowances, restocking charges, transportation
charges, transit insurance, duties and taxes added to the face of the invoice, sales by independent distributors, and sales between USSC and its Affiliates, subsidiaries, sublicensees or permitted assignees. NET SALES shall be subject to the
exclusions set forth in Article II, Paragraph G. The portion of the gross sales price of any package, tray or other group of items consisting of one or more ROYALTY PRODUCTS and non-ROYALTY PRODUCTS (“Package”) to be included in
NET SALES shall be deemed to be the gross sales price of the Package multiplied by the ratio of the individual retail list price of the ROYALTY PRODUCTS contained in the Package to the sum of all individual retail list prices of every item in the
Package (if all of such items were sold separately). If all such items are not 

  

 4 

 
sold separately, any item not sold separately shall have a price attributed to it for purposes of this Paragraph consistent with pricing of similar products
or their functional equivalents. 
 K. “CALENDAR QUARTERS” shall mean the three month periods during a CALENDAR YEAR
beginning with the first day of January, April, July and October. 
 L. “CALENDAR YEAR” shall mean a year beginning
January 1 and ending the following December 31. 
 M. “TERRITORY” shall mean all countries of the world.

 N. “ROYALTY PRODUCTS” mean products sold by USSC and by any AFFILIATE and/or sublicensee which are either
(a) LICENSED PRODUCTS and/or a LICENSED PROCESS which are covered by one or more valid, enforceable patent claims in or which issue on or from the PATENTS or IMPROVEMENT PATENTS; or (b) LICENSED PRODUCTS and/or a LICENSED PROCESS which are
covered by one or more valid, enforceable patent claims in or which issue on or from the PATENTS or IMPROVEMENT PATENTS, in combination with one or more USSC INVENTIONS. 
 O. “USSC INVENTION” shall have, the meaning set forth in Article III, Paragraph R hereof. 
 P. “CONFIDENTIAL INFORMATION” shall have the meaning set forth in Article III, Paragraph A hereof. 
 ARTICLE II - LICENSE 
 A. Grant of License. On the Effective Date, LICENSOR agrees to grant
and does hereby grant to USSC an exclusive, worldwide license (with right to sublicense) upon the terms and conditions hereinafter specified to evaluate, make, have made, use and sell in the TERRITORY the SURGICAL CLIP TECHNOLOGY, the LICENSED
PRODUCTS, the 

  

 5 

 
LICENSED PROCESSES and the TECHNICAL INFORMATION and including, without limitation, IMPROVEMENTS, PATENTS and IMPROVEMENT PATENTS. LICENSOR shall retain the
right to permit Wolff M. Kirsch, M.D. and Yong Hua Zhu, M.D. to use any of the SURGICAL CLIP TECHNOLOGY, the LICENSED PRODUCTS, LICENSED PROCESSES and TECHNICAL INFORMATION, and including, without limitation, IMPROVEMENTS, PATENTS and
IMPROVEMENT PATENTS for human, neurosurgical procedures performed only by them in their existing neurosurgical practice and only until USSC has developed a potential ROYALTY PRODUCT for clinical field testing. Such usage shall be without
compensation to or liability on the part of USSC; but all of the same shall be treated by LICENSOR as CONFIDENTIAL INFORMATION of USSC during the term of this Agreement. 
 B. Extension of License to AFFILIATES. USSC may, upon terms and conditions hereinafter specified, extend the rights and licenses granted under this Agreement to AFFILIATES of USSC provided USSC agrees in
writing to be responsible for the performance by such AFFILIATES of all USSC obligations hereunder including payment of royalties by the AFFILIATES to whom the rights and licenses have been extended. USSC may on the same conditions also sublicense
the rights and licenses granted hereunder to other third parties. 
 C. Terms of License. The term of the rights and licenses granted
by this Agreement shall commence on the Effective Date and terminate upon the expiration of the last to expire patent issuing on or from the PATENTS and the IMPROVEMENT PATENTS and which provide claim coverage of a commercial embodiment of said
ROYALTY PRODUCTS, or twenty (20) years after the commencement of the rights and licenses granted by this Agreement, whichever is the later, unless earlier terminated by reason of termination of this Agreement. 
  

 6 

 D. USSC’s Initial Payment. USSC will pay to LICENSOR on the Effective Date the sum of
[CONFIDENTIAL TREATMENT REQUESTED] /*/ Dollars ($[CONFIDENTIAL TREATMENT REQUESTED]/*/). This payment will be made to Spinnaker R&D Associates. 
 E. LICENSOR’s Initial Disclosures. LICENSOR shall furnish to USSC (1) on or prior to the Effective Date, a copy of its files and its attorney’s files concerning the PATENTS including all opinions of counsel;
(2) within forty-five (45) days after the Effective Date, Five Hundred (500) each of the MICRO CLIPS, MEZZO CLIPS and MACRO CLIPS, plus five (5) applicators for each size, each suitable for placing the MICRO CLIPS, MEZZO CLIPS
and MACRO CLIPS. USSC shall reimburse LICENSOR for the time and materials required to supply USSC with said clips and applicators but the total cost to USSC is not to exceed Fifteen Thousand Dollars ($15,000); and (3) within forty-five
(45) days after the Effective Date, full and complete disclosure of all information and knowledge of whatever kind or description relating to the LICENSED PRODUCTS, the LICENSED PROCESSES and TECHNICAL INFORMATION which LICENSOR has on the
Effective Date. Such disclosure shall include, without limitation, a copy of all histological,, biochemical or other written studies, clinical or other trials, tests, prototypes, models, videos, photographic film or slides, reports, computerized
data, drawings, patent applications, opinions of patent and FDA (defined below) counsel, testimonials of surgeons and any other material, documentary or otherwise, relating to any of the foregoing. LICENSOR covenants and agrees to promptly furnish
to USSC all IMPROVEMENTS together with the foregoing types of information and knowledge conceived or developed by the INVENTORS during the term of this Agreement. 
  

 7 

 F. Earned Royalties. USSC shall pay royalties to LICENSOR in the manner provided hereunder, such
payments shall be based on NET SALES of ROYALTY PRODUCTS in accordance with the following schedule: 
  

			
	 CALENDAR YEAR
NET SALES (U.S. DOLLARS)
	  	 Royalty Rate as Percent of
NET SALES

	 Up to and including
 [CONFIDENTIAL
 TREATMENT REQUESTED] /*/
	  	 [CONFIDENTIAL
 TREATMENT
 REQUESTED] /*/

		
	 Over [CONFIDENTIAL
 TREATMENT REQUESTED] /*/
	  	 [CONFIDENTIAL
 TREATMENT
 REQUESTED] /*/

 G. Exceptions to Royalties. It is agreed that royalties shall not be due under this
Agreement for any ROYALTY PRODUCTS which are used by USSC solely for the purpose of clinical testing, market testing, product testing, promotion or advertising. 
 H. Single Payment. In no event shall more than a single royalty payment be due on any ROYALTY PRODUCT. 
 I. Minimum Royalties. Subject to the terms of this Agreement and for so long as this License is in effect, USSC shall be obligated to pay to LICENSOR the following minimum royalty according to the following schedule and subject to
the stated conditions: 
  

			
	 1993 CALENDAR YEAR
	  	 $[CONFIDENTIAL
 TREATMENT
 REQUESTED] /*/

		
	 1994 CALENDAR YEAR
	  	 $[CONFIDENTIAL
 TREATMENT
 REQUESTED] /*/

		
	 1995 CALENDAR YEAR and
 remaining CALENDAR YEARS
 until termination of this Agreement
	  	 $[CONFIDENTIAL
 TREATMENT
 REQUESTED] /*/

 The payments called for above shall be prorated on a CALENDAR QUARTERLY basis. A CALENDAR
QUARTER’s minimum royalty payment shall be due and payable within sixty 

  

 8 

 
(60) days after the end of such CALENDAR QUARTER. USSC shall be deemed to satisfy in full the foregoing obligation if such amounts are timely paid whether or
not there are any NET SALES. 
 J. Duration and Timing of Payments. Royalties on a ROYALTY PRODUCT shall be due and payable to
LICENSOR during the term of the License, as set forth in this Agreement. At the expiration of the term or upon the earlier termination of the license granted by this Agreement, no further royalties will be required to be made by USSC to LICENSOR
hereunder. Royalties which are payable under Article II, Section F above (“Earned Royalties”) shall be paid on a quarterly basis within sixty (60) days after the end of the CALENDAR QUARTER. To the extent Earned Royalties
are in excess of the Article II, Section I minimum royalty in a CALENDAR QUARTER, such CALENDAR QUARTER’s minimum royalty obligation shall be deemed to have been satisfied in full and such excess shall be credited against minimum
royalty in other CALENDAR QUARTERS of that CALENDAR YEAR, but not be carried forward or credited against minimum royalty in any other CALENDAR YEAR. To the extent a CALENDAR QUARTER’s minimum royalty exceeds Earned Royalties for such CALENDAR
QUARTER, USSC shall be entitled to carry forward and credit such excess against Earned Royalties in subsequent CALENDAR QUARTERS of that CALENDAR YEAR, but no part of the minimum royalty for a CALENDAR YEAR shall be carried forward or credited
against Earned Royalties in a subsequent CALENDAR YEAR. 
 K. Manner of Payments. All royalty payments under this Agreement will be
made to Spinnaker R&D Associates. 
 L. Record Keeping. USSC shall keep complete and accurate records of the sale of ROYALTY
PRODUCTS with respect to which royalty is payable according to this Agreement 

  

 9 

 
and, within sixty (60) days following each quarterly period of a CALENDAR YEAR during which royalties are due under this Agreement, USSC shall render to
LICENSOR a written report setting forth the amount of royalty due and payable on such ROYALTY PRODUCTS during such quarterly period, and USSC shall, upon rendering such report, remit to LICENSOR the amount of royalty shown thereby to be due.

 M. Inspection. USSC shall provide to LICENSOR each CALENDAR YEAR and at USSC’s expense a letter (“Verification
Letter”) from an independent accounting firm verifying the calculation of periodic royalties due under this Agreement. In lieu of the aforesaid letter, LICENSOR shall have the right to nominate an independent accounting firm of nationally
recognized standing acceptable to and approved by USSC (such approval not to be unreasonably withheld), who shall have access to the records of USSC and those of its AFFILIATES having a license or separate agreement pursuant to this Agreement. Such
examination shall occur during business hours and not more than once a year and solely for the purpose of verifying the royalties payable as provided for in this Agreement. Unless written objection is made by LICENSOR and delivered to USSC within
sixty (60) days after delivery to LICENSOR of the Verification Letter or the completion of examination by the accountants selected by LICENSOR, then calculation of periodic royalties paid by USSC prior to the date of such Verification Letter or
date of such examination shall be final and binding on the parties, except insofar as adjusted or corrected as a result of USSC’s regular annual audit. Any information provided to or inspected by LICENSOR’s accountants shall be treated as
USSC’s Confidential Information subject to Article IV Paragraph A. The accountants shall disclose to LICENSOR only information relating to the accuracy of the royalty report and the royalty payments made according to this Agreement.
The fees and expenses of such accountants selected by LICENSOR shall be borne solely by LICENSOR. 
  

 10 

 N. Royalties in U.S. Dollars. Royalties on United States sales and all other payments to be made
to LICENSOR by USSC under this Agreement shall be made in U.S. Dollars, or in such other currency (“foreign currency”) as both parties mutually agree upon. Any royalties payable hereunder on sales outside the United States by USSC will be
payable to LICENSOR in United States Dollars and will be computed by multiplying the foreign currency sales by the average rate of exchange for the previous quarter of the currency of the country to the U.S. Dollar for the quarter in which the
sales are made based on the daily foreign currency exchange rates reported in the New York Times. Such U.S. Dollar translated sales will then be included with other sales for computation of the royalties. In the event that USSC extends its
license under this Agreement to any AFFILIATE of USSC or other party, or LICENSOR enters into a separate agreement with any AFFILIATE of USSC or other party pursuant to this Agreement, such AFFILIATE or other party shall pay the royalty to USSC in
accordance with the provisions of this Agreement (or the separate agreement) in United States Dollars in the same manner as previously set forth. If the law or regulations of any country shall at any time operate or prohibit the transfer of funds
therefrom to the United States, LICENSOR shall have the option to require USSC to make payment hereunder on account of sales in such country by depositing local currency to the account of LICENSOR in a bank in said country acceptable to LICENSOR and
notify LICENSOR to such effect and, in such case, USSC shall thereafter cooperate with LICENSOR by all lawful means to obtain lawful release of said funds to LICENSOR (provided that LICENSOR shall reimburse USSC for all out of pocket expenses
incurred by it in providing such assistance) but shall have no further responsibility therefor. 
  

 11 

 O. Taxes. Any sum required under United States tax laws (or the tax laws of any other government)
to be withheld by USSC from payment for the account of LICENSOR shall be promptly paid by USSC for and on behalf of LICENSOR to the appropriate tax authorities, and USSC shall, furnish LICENSOR with official tax receipts or other appropriate
evidence issued by the appropriate tax authorities sufficient to enable LICENSOR to support a claim for income tax credit in respect of any sum so withheld. This same provision shall also apply to any AFFILIATE of USSC or other party sublicensed
pursuant to this Agreement with relation to the tax laws of the respective country or countries in which such AFFILIATE is doing business. 
 P. Direct License to AFFILIATE. USSC may request at any time to have LICENSOR grant the applicable rights in any particular country to an AFFILIATE of USSC, and LICENSOR shall, whenever requested by USSC enter into direct agreements
with such designated AFFILIATES whereby said AFFILIATE will be obligated to remit its payments due for sales in such country directly to LICENSOR, and LICENSOR shall execute such formal direct agreement documents as USSC may request which may be
necessary to effect such purposes, provided that in any such case USSC shall guarantee the performance of its AFFILIATE under such direct agreement, and further provided that the formal direct agreement shall provide for the same terms as this
Agreement insofar as such terms are lawful under the applicable laws and regulations of the particular country. In the event that laws of a particular country require any deviation from the terms of this Agreement, LICENSOR and USSC shall negotiate
such appropriate substitute terms as may be required. 
 Q. Third Party Patents. If the manufacture, use or sale of LICENSED PRODUCT,
LICENSED PROCESS, TECHNOLOGICAL INFORMATION, PATENT, and IMPROVEMENTS in connection with a ROYALTY PRODUCT by USSC, its affiliates, 

  

 12 

 
subsidiaries or permitted assigns pursuant to Article 3, Paragraph G results in a claim, lawsuit or other legal action by a third party for
infringement, the party receiving such claim, lawsuit or other legal action shall immediately notify the other party in writing. Subject to fulfillment by LICENSOR of its notice obligations pursuant to the immediately preceding sentence, and the
correctness of LICENSOR’s representation and warranty, set forth in Article III, Paragraph Q(5), USSC shall defend LICENSOR against such claim, lawsuit or other legal action. USSC shall have the right to conduct the legal defense, or
to enter into any settlement agreements, as it, in its sole discretion, deems appropriate. LICENSOR may participate in the lawsuit or other legal action through its own attorney at LICENSOR’S sole cost and expense. LICENSOR agrees to cooperate
with USSC in its defense of any such claim. During the pendency of such claim, lawsuit or other legal action, USSC shall have the right after giving LICENSOR the above described notice to pay over to an escrow agent one hundred percent (100%) of the
1993 minimum royalty and earned royalties on 1993 worldwide NET SALES of the allegedly infringing ROYALTY PRODUCT, and, with respect to each subsequent year, fifty percent (50%) of minimum royalties and earned royalties on worldwide NET SALES of the
allegedly infringing ROYALTY PRODUCT. The escrow agent shall have binding instructions to invest such amounts in an interest-bearing account and to release same as follows: (a) to third party(s), if, any, for awarded damages, costs and expenses
in such lawsuit or legal action pursuant to such award, (b) to third party(s), if any, with whom USSC settles any such claim, lawsuit or other legal action to the extent required by the terms of such settlement, and (c) to pay fifty
percent (50%) of USSC’s legal costs and expenses as and when billed to USSC in connection with any such claim, lawsuit or other legal action, with the balance, if any, 

  

 13 

 
to be released to LICENSOR after final determination of and reduction for all of the foregoing. Any other instructions to the escrow agent shall be mutually
agreed upon by LICENSOR and USSC. Assuming LICENSOR has not breached or defaulted on this Agreement, LICENSOR’s liability for such award, amounts paid in settlement and USSC’s legal costs and expenses shall be limited to one hundred
percent (100%) of the amounts in escrow pursuant to this Paragraph, plus fifty percent (50%) of all future minimum and earned royalties payable to LICENSOR under this Agreement. Such future minimum and earned royalties shall be subject to escrow in
accordance with this Paragraph. 
 R. Third Party Infringement. In the event it appears any third party infringes any patent comprised
within the PATENTS OR IMPROVEMENT PATENTS, USSC shall notify LICENSOR in writing or, as the case may be, LICENSOR shall notify USSC in writing, and the parties shall discuss the possible courses of action. USSC, upon written notice to LICENSOR,
shall have the primary right to initiate a legal action or proceeding for infringement against the unlicensed party or parties at USSC’s own cost and expense and for its own benefit. LICENSOR agrees to render reasonable assistance to USSC in
any legal action or proceeding instituted by USSC under this paragraph. Furthermore, USSC shall keep LICENSOR informed of any legal action or proceeding brought by USSC pursuant to this Paragraph and provide LICENSOR the opportunity to participate
in such action or proceeding and any proposed settlement thereof; provided however, the final decision with regard to such action or proceeding or settlement shall be in USSC’s discretion. The right to sue infringers accorded to USSC is limited
to USSC and shall not belong to any sublicensee or AFFILIATE of USSC, although USSC shall retain the right to Join any AFFILIATE or sublicensee to any legal action or proceeding contemplated by this Paragraph. Notwithstanding the right of USSC to
sue patent infringers, this Agreement shall 

  

 14 

 
not be construed as assigning any proprietary rights in LICENSED PRODUCTS, LICENSED PROCESSES or TECHNICAL INFORMATION to USSC. USSC expressly acknowledges
that LICENSOR retains full ownership of all proprietary rights in LICENSED PRODUCTS, LICENSED PROCESSES, and TECHNICAL INFORMATION, except as to such improvements as may be originated and owned by USSC or may be jointly originated and owned by
LICENSOR and USSC. 
 Any monetary recovery in any patent infringement action or proceeding brought by USSC for infringement of any PATENTS
or IMPROVEMENT PATENTS, shall inure solely to the benefit of USSC. If there is a monetary recovery, LICENSOR shall be reimbursed for its out of pocket expenses, excluding attorneys fees and expenses, in rendering assistance to USSC. In the event
that USSC shall fail, within a period of six (6) months after receiving or issuing written notice of an apparent infringement, to initiate a legal action or proceeding or to commence settlement negotiations with respect to such apparent
infringement, LICENSOR shall have the right but not the obligation to initiate a legal action or proceeding for infringement against the unlicensed party or parties at LICENSOR’s own cost and expense. USSC agrees to render reasonable assistance
to LICENSOR in any legal action or proceeding instituted by LICENSOR under this Paragraph. LICENSOR shall keep USSC informed of any legal action or proceeding brought by LICENSOR pursuant to this Paragraph and provide USSC the opportunity to
participate in such action or proceeding and any proposed settlement thereof; provided however, the final decision with regard to such action or proceeding or settlement shall be in LICENSOR’s discretion. 
 Any monetary recovery in any such action or proceeding brought by LICENSOR for infringement of any PATENTS or IMPROVEMENT PATENTS shall inure solely to
the benefit 

  

 15 

 
of LICENSOR. If there is a monetary recovery, USSC shall be reimbursed for its out of pocket expenses, excluding attorneys fees and expenses, in rendering
assistance to LICENSOR. 
 S. Products Liability. USSC will indemnify LICENSOR against all losses, liabilities, lawsuits, claims,
expenses (including attorneys’ fees), costs, and judgments incurred through personal injury, property damage (excluding third party patent claims), or other claims of third parties, arising from the design, manufacture, use, or sale of ROYALTY
PRODUCTS under this Agreement. 
 ARTICLE III - GENERAL PROVISIONS 
 A. Confidentiality. Both parties. agree to retain in confidence TECHNICAL INFORMATION and any other proprietary, trade secret information
(collectively, “CONFIDENTIAL INFORMATION”) received from the other party and clearly marked as proprietary for a period of five (5) years from the date this Agreement is terminated. The existence, terms and conditions of this
Agreement shall be deemed CONFIDENTIAL INFORMATION of each of the parties subject to Article III, Paragraph L. Both parties agree not to disclose CONFIDENTIAL INFORMATION to third parties and not use CONFIDENTIAL INFORMATION except in
accordance with this Agreement. Both parties’ obligation of non-disclosure and non-use shall not apply to CONFIDENTIAL INFORMATION which (a) at the time of disclosure is in the public domain, (b) after disclosure is published or
otherwise becomes part of the public domain through no fault of the receiving party but only after it is published or otherwise becomes part of the public domain, (c) the receiving party can show was in its possession at the time of disclosure,
(d) the receiving party can show was received by it from a third party having the right to disclose CONFIDENTIAL INFORMATION to the receiving party or, (e) was obtained by inspection of a product which is or becomes available in 

  

 16 

 
the open market or otherwise, as demonstrated by documentation was developed independently of the CONFIDENTIAL INFORMATION. 
 USSC may disclose during the period of this Agreement LICENSOR’S CONFIDENTIAL INFORMATION to third parties provided that prior to such disclosure,
USSC shall obtain from said third party a signed agreement of non-disclosure and non-use (except for the purposes of this Agreement) covering CONFIDENTIAL INFORMATION. 
 B. FDA Interaction; Government Approvals and Marketing. Following USSC’s exercise of its option under this Agreement, interaction with the U.S. Food and Drug Administration (“FDA”) concerning the
ROYALTY PRODUCTS shall be conducted solely by USSC and that for purposes of any filings with the FDA concerning the ROYALTY PRODUCTS, USSC shall be the sole official company sponsor. LICENSOR shall, upon USSC’s request, assist USSC with FDA
interaction concerning the ROYALTY PRODUCTS provided that USSC shall reimburse LICENSOR for all out of pocket expenses (other than attorneys’ fees and expenses unless USSC expressly requests such legal assistance) in connection therewith.
[CONFIDENTIAL TREATMENT REQUESTED] /*/ shall have the [CONFIDENTIAL TREATMENT REQUESTED] /*/, at [CONFIDENTIAL TREATMENT REQUESTED] /*/, for obtaining any government approvals that may be required for the investigation or marketing of ROYALTY
PRODUCTS in the TERRITORY. Notwithstanding anything contained in this Agreement to the contrary, USSC shall have no liability to LICENSOR for delay or failure to develop, manufacture, have manufactured, use, sell or otherwise dispose of or
commercialize the SURGICAL CLIP TECHNOLOGY or for failure to seek or procure any FDA approvals. USSC shall have the unqualified right at any time to cease all marketing efforts or all efforts to obtain FDA approvals. Nothing herein shall prevent

  

 17 

 
USSC from setting its own prices for ROYALTY PRODUCTS or determining USSC’s marketing policies and practices in its sole discretion. 
 C. Patents. On and after the Effective Date, USSC shall be responsible (including payment of all costs and fees, including attorneys’ fees)
for prosecution and maintenance of all Patents and Patent Rights plus the preparation, filing, and prosecution of any other patent applications and maintenance of patents covering IMPROVEMENTS reported to USSC by LICENSOR after the Effective Date
during the term of this Agreement. During the term of this Agreement, in the event LICENSOR wishes to publish TECHNICAL INFORMATION, LICENSOR shall report to USSC with reasonable promptness and, in any event, no less than six (6) months prior
to any intended publication date,, all inventions made by the INVENTORS within the SURGICAL CLIP TECHNOLOGY. The decision whether to file a patent application or maintain a patent on such inventions shall be solely that of the LICENSOR who shall
consult with USSC and reasonably take USSC’s recommendations into consideration. If USSC fails to reasonably concur in a decision to file a patent application, continue prosecution of a patent application, use reasonable efforts to obtain
patent issuance, or timely pay to maintain a patent and thus pay for all of the costs and fees connected there with, the invention covered thereby shall not be deemed part of this Agreement in the involved country, and USSC and its sublicensees, if
any, shall have no rights whatsoever, in the involved country. 
 It is specifically understood by the parties that not all of the ROYALTY
PRODUCTS, LICENSED PRODUCTS or LICENSED PROCESS (other than those PATENTS specifically represented by LICENSOR in Exhibit A as issued in the specifically named jurisdiction) may be patentable either in the United States or in any foreign
country. No party to this Agreement is relying upon any expectation of the issuance of any patent, as a basis for its decision to execute 

  

 18 

 
this Agreement. It is the intent of the parties that this Agreement shall be fully valid and enforceable for any LICENSED PRODUCTS and LICENSED PROCESSES for
which no patents are obtained. 
 USSC shall see to it that all patented ROYALTY PRODUCTS sold by USSC or any AFFILIATE or sublicensee of
USSC shall be appropriately marked with the applicable patent numbers, in conformity with applicable law. 
 D. Trademarks. USSC as it
deems appropriate, shall originate, select and apply to register one or more trademarks under which the ROYALTY PRODUCTS shall be solely and distributed by USSC or its subsidiaries, Affiliates and licensees. Such trademarks shall be the exclusive
property of USSC or its designees, which shall be solely responsible for all prosecution, defense, maintenance and costs relating to same. All decisions relative to such trademarks shall be made by USSC. LICENSOR shall bear no responsibility for any
of the costs and efforts associated with the selection, searching, registration, licensing and protection of such trademarks. LICENSOR shall not use, or assert any claim in, any of such trademarks or any trademark confusingly similar to any of such
trademarks. 
 E. Publications. The INVENTORS shall submit, and shall cause everyone under their direction to submit, all proposed
publications of any data or information involving or relating to Surgical Clip Technology to USSC at least (30) days prior to submission for publication or disclosure to a third party, for review by USSC. If USSC, for good reason, (such as
disclosure of critical information or possible conflict with USSC development and commercialization program), requests the postponement of such publication, the authors of the publication will postpone such publication for at least sixty days. If
USSC requests a delay of publication for more than sixty days, which request is not acceded to by the authors, the dispute 

  

 19 

 
will be submitted to arbitration in accordance with this Agreement for resolution, after consultation with Spinnaker. 
 F. Termination. 
 (1)
USSC shall have the right to terminate this Agreement in its entirety and without penalty at any time upon the giving of notice set forth in Paragraph F(3) of this Article. Upon termination of this Agreement, USSC shall have no further rights
to the LICENSED PRODUCTS, LICENSED PROCESS, PATENTS and IMPROVEMENT PATENTS or TECHNICAL INFORMATION or any further royalty or other obligations with respect thereto, including without limitation any future minimum royalty otherwise payable
hereunder. However, USSC shall pay to LICENSOR all accrued and unpaid earned or minimum royalty due upon as of the termination date including, with respect to the minimum royalties, a pro rata portion thereof based on the number of days in such
calendar quarter. However, USSC shall be allowed to sell any existing inventory of ROYALTY PRODUCTS at time of termination and for six (6) months thereafter provided USSC accounts for such sales and pays LICENSOR the appropriate royalty payments for
such sales as set forth in this Agreement. 
 (2) LICENSOR shall have the right to terminate the License any time the minimum
royalty or earned royalty required to be paid pursuant to this Agreement is not paid or otherwise satisfied in accordance with this Agreement. The length of the notice period for purposes of this Paragraph F(2) only shall be ten (10) days.

 (3) If USSC elects to terminate this Agreement pursuant to Paragraph F(l) of this Article, USSC shall provide to
LICENSOR written notice of the termination at least sixty (60) days prior to the termination. 
  

 20 

 (4) Except as set forth in Paragraph F(2) above, either party may terminate this
Agreement upon sixty (60) days written notice for any material breach or default of the other party hereto which shall include, without limitation, if any of the representations and warranties of the other party shall be incorrect in any material
respect. Said notice shall become effective at the end of said period unless during said period the party in breach shall cure such breach or default, if such breach or default can be cured within such period. 
 (5) LICENSOR may terminate this Agreement if USSC is involved in insolvency, dissolution, bankruptcy or receivership proceedings affecting
the operation of its business, except in the event a petition is filed against USSC in which event the LICENSOR’s right to terminate this Agreement shall accrue only if such petition is not dismissed or stayed within sixty (60) days after
filing. 
 G. Assignment. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their successors to
the entire assets and business of the respective parties hereto. This Agreement or part thereof may be assigned by either party to an AFFILIATE of such party provided that the assigning party guarantees the full performance by such AFFILIATE of the
Agreement. USSC may further assign its rights and obligations under this Agreement to a financially responsible third party in connection with a complete transfer of the business to which this Agreement pertains. The assigning party will so inform
the other party to this Agreement without delay of any assignment made in accordance with the conditions of this Agreement. This Agreement shall not otherwise be assignable by either party without the prior written consent of the other party. Any
and all assignments of this Agreement or any interest therein not made in accordance with this paragraph shall be void. 
  

 21 

 H. Force Majeure. Neither party shall be liable for failure to perform as required by any
provision of this Agreement where such failure results from a cause beyond such party’s reasonable control such as acts of God, regulation or other acts of civil or military authority, required approval of government bodies, fires, strikes,
floods, epidemics, quarantine restrictions, riot, delays in transportation and inabilities to obtain necessary labor, materials, or manufacturing facilities: In the event of any delay attributable to any of the foregoing causes, the time for
performance affected thereby shall be extended for a period equal to the time lost by reason of such delay. 
 I. Notice. Any notice
required or permitted to be given by this Agreement shall, unless otherwise provided for in this Agreement, be given by registered or certified mail or an equivalent form of mailing with postage prepaid and addressed to the proper party as follows:

  

			
	If to LICENSORS:	  	Spinnaker R&D Associates
		  	5300 DTC Parkway
		  	Suite 270
		  	Englewood, Colorado 80111
		  	Attn: Lowell A. Hare
		  	          Managing General Partner
		
	If to USSC:	  	United States Surgical Corporation
		  	150 Glover Avenue
		  	Norwalk, CT 06856
		  	Attn: Thomas R. Bremer
		  	          Vice President & General Counsel

 J. Failure to Enforce. Failure of a party to enforce at any time for any period any of the
provisions of this Agreement shall not be construed to be a waiver of such provision or the right of such party thereafter to enforce each such provision. 
 K. Inoperable Provision. In the event any provision or provisions of this Agreement shall be inoperable either by operation of law or otherwise, the remainder of this Agreement shall remain in full force and
effect. 
  

 22 

 L. Publicity. Both parties agree not to publicize or advertise the existence of this Agreement to
third parties without the prior written consent of the other party hereto except if required by a bona fide order of a court or competent government authority. 
 M. Entire Agreement. This Agreement sets forth the entire understanding between the parties in respect to the subject matter hereof and supercedes all prior agreements, arrangements, or understandings related
to said subject matter, and there are no promises, representations, conditions, provisions or terms related thereto other than these set forth in this Agreement. This Agreement may not be changed, modified or amended except by a writing signed by
both parties hereto. 
 N. Arbitration. Any controversy or claim arising out of or relating to this Agreement, or the breach thereof,
shall be settled by arbitration in Chicago, Illinois in accordance with the Rules of the American Arbitration Association, and judgment upon the award rendered by the Arbitrator(s) may be entered in the Court having jurisdiction thereof. Arbitration
proceedings must be instituted within [CONFIDENTIAL TREATMENT REQUESTED] /*/ ([CONFIDENTIAL TREATMENT REQUESTED] /*/) after the aggrieved party knew or reasonably should have known of such claimed breach. The failure to institute arbitration
proceedings within such period shall constitute an absolute bar to the institution of proceedings and a waiver of such breach. A party contesting any payment or issue under this Agreement, (i) who continues to comply with all other payment
obligations and provisions of this Agreement, and (ii) who pays over any such contested amount to a bank escrow agent (with binding instructions to invest such amount in an interest-bearing account and to release same only pursuant to agreement
of the parties or final unappealable judgment of a court of competent jurisdiction) shall not be considered in breach of this Agreement for purposes of giving rise to any right of termination in the other party until there is 

  

 23 

 
a final judgment of a court of competent jurisdiction adverse to such contesting party with which judgment such party has failed to comply within fifteen
(15) after written notice thereof. 
 O. Governing Law. This Agreement shall be governed by, and construed in accordance with the
laws of the State of Delaware. 
 P. Warranties. LICENSOR hereby represents and warrants as follows: 
 (1) No patent application (that has not been abandoned) has been filed by it or on its behalf on or prior to the date of this Agreement
for any device intended or suitable for clinical applications to vessels or any device intended or suitable for use in connection with any such device, other than as set forth in Exhibit A. 
 (2) LICENSOR is the owner of full legal and beneficial title to all rights pertaining to the LICENSED PRODUCTS, the LICENSED PROCESSES and
TECHNICAL INFORMATION including, without limitation, the Patents and patent application set forth in Exhibit A attached, hereto and incorporated herein. This Agreement has been approved and ratified in form and substance by each of Spinnaker
R&D Associates, the University of New Mexico, Wolff M. Kirsch, M.D., Yong Hua Zhu, M.D., and Robert B. Cushman. Spinnaker R&D Associates is duly authorized to enter into this Agreement on behalf of each of the foregoing persons and entities.
LICENSOR has delivered to USSC on or prior to the Effective Date letters from Drs. Kirsch and Zhu, Mr. Cushman and the University of New Mexico in the form set forth in Exhibit B. 
 (3) LICENSOR shall have delivered to USSC prior to the Effective Date of, this Agreement copies of all third party confidentiality
agreements with respect to the SURGICAL CLIP TECHNOLOGY. All such copies and the documents delivered and to be delivered to USSC pursuant to Article II Paragraph E shall be true and complete. 
  

 24 

 (4) USSC shall not be liable to any person as a result of any action taken by LICENSOR or
its agents, for any fee, commission or claim of any sort as a result of that person acting as a broker, finder or intermediary in connection with the subject matter of this Agreement. 
 (5) LICENSOR has no agreement with any third party which, if enforceable and enforced, terminated or modified might adversely affect the
rights granted to USSC hereunder, except as set forth in Exhibit C, but none of such parties shall have any rights hereunder or be deemed a third party beneficiary hereof. LICENSOR represents and warrants that to the best of its knowledge there
are no actions, suits, proceedings, investigations or claims, pending or threatened, to the proprietary rights of LICENSOR or the rights granted to USSC pursuant to this Agreement and that it has no knowledge and has received no legal opinion that
the manufacture, use or sale of the LICENSED PRODUCTS, LICENSED PROCESS or TECHNICAL INFORMATION infringes the patent rights of any third party. 
 Except as set forth above, LICENSOR EXPRESSLY DISCLAIMS ANY OTHER WARRANTIES OF ANY KIND REGARDING THE SUBJECT MATTER OF THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION OF THE GENERALITY OF THE FOREGOING, ANY WARRANTIES AS TO UTILITY OR
PATENTABILITY OF ANY LICENSED PRODUCTS, LICENSED PROCESS OR TECHNICAL INFORMATION ANY WARRANTIES OF NONINFRINGEMENT OF ANY THIRD PARTY PATENTS, OR ANY WARRANTIES OF MERCHANTABILITY OR OF FITNESS FOR ANY PARTICULAR PURPOSE, FOR ANY OF THE ROYALTY
PRODUCTS, LICENSED PRODUCTS, LICENSED PROCESS or TECHNICAL INFORMATION WHICH MAY BE MADE AND DISTRIBUTED BY OR FOR USSC. 
  

 25 

 Q. Proprietary Rights. USSC and LICENSOR affirm their understanding that the LICENSED PRODUCTS,
LICENSED PROCESS and TECHNICAL INFORMATION defined in this Agreement reflect, and are the product of, trade secrets and confidential intellectual property of the LICENSORS and that any new invention, modification or improvement, relating to the
ROYALTY PRODUCTS, the LICENSED PRODUCTS, LICENSED PROCESS or TECHNICAL INFORMATION independently developed or conceived and reduced to practice solely by USSC either prior to or during the term of this Agreement (each a “USSC Invention”)
shall be the exclusive property of USSC, although to the extent same shall be part of a ROYALTY PRODUCT a royalty shall be due to LICENSOR as set forth in this Agreement. 
 R. No Agency. Nothing in this Agreement authorizes either LICENSOR or USSC to act as agent for the other as to any matter, or to make any representations to any third party indicating or implying the existence
of any such agency relationship. LICENSOR and USSC shall each refrain from any such representations. The relationship between LICENSOR and USSC is that of independent contractors. 
 IN WITNESS WHEREOF, the parties hereto have caused these presents to be signed by their respective duly authorized officers the day and year first above
written. 
  

									
		 		 	 LICENSEE:

			
		 		 	 UNITED STATES SURGICAL CORPORATION

				
	 Date: January 31, 1992
	 		 	 By:
	 	 /s/ Robert A. Knarr

		 		 		 		 	 Robert A. Knarr,
 Vice President Marketing

  

 26 

 STATE OF CONNECTICUT 
 COUNTY OF FAIRFIELD 
 On this
31st day of January, 1992 before me, a notary public, personally appeared Robert A. Knarr to me known who by
me duly sworn, did depose and say that he is the Vice President, Marketing of United States Surgical Corporation, the corporation described in and which executed the foregoing instrument for the purposes and the consideration therein
expressed in the capacity therein stated and as the act and deed of the Corporation. 
  

	
	
	 /s/ Luanne M. Meade

	 Luanne M. Meade
 Notary Public
 My Commission Expires: 3/31/92

  

 27 

									
		 		 	 LICENSOR:

			
		 		 	SPINNAKER. R&D ASSOCIATES, on behalf of itself and the University of New Mexico, Wolff M. Kirsch, M.D., Yong. Hua Zhu, M.D. and Robert B. Cushman
				
	 Date: February 10, 1992
	 		 	 By:
	 	 /s/ Lowell A. Hare

		 		 		 		 	 Lowell A. Hare,
 Managing General Partner

 STATE OF COLORADO 
 COUNTY OF ARAPAHOE 
 On this
10th day of February, 1992 before me, a notary public, personally appeared Lowell A. Hare to me known, who by me duly sworn, did depose and say that he is the Managing General Partner of Spinnaker R & D Associates, the New Mexico general
partnership described in and which executed the foregoing instrument for the purposes and the consideration therein expressed in the capacity therein stated and as the act and deed of said general partnership. 
  

	
	
	 /s/ Ann W. Thomas

	 Notary Public
 My Commission Expires: June 26, 1992

  

 28 

 03/27/91 (AMENDED) 
 KIRSCH, ET AL. INVENTIONS RELATING TO SURGICAL MICROCLIP 
  

											
	HWG No.	  	Country	 	Serial No.	  	Filing
Date	  	Patent No.	  	Issue Date
	SURGICAL MICROCLIP (MC-002)	  		  		  	
	A-1613	  	USA	 	556,917	  	12/01/83	  	4,586,503	  	05/06/86
	F-1825	  	Britain	 	8,428,755	  	11/14/84	  	2,150,440B	  	02/18/87
	F-1832	  	Canada	 	469,012	  	11/30/84	  	1,251,113	  	03/14/89
	F-1826	  	France	 	84 18256	  	11/30/84	  	84 18256	  	03/30/90
	F-1831	  	Germany	 	P3443367.8	  	11/28/84	  	34 43 367	  	03/09/89
	F-1827	  	Italy	 	84146 A/84	  	11/30/84	  	1,181,465	  	09/30/87
	F-1828	  	Sweden	 	8406053-2	  	11/30/84	  	454,321	  	08/04/88
	
	SURGICAL CLIP, APPLIER AND METHOD (MC-013)
	A-2021	  	USA	 	787,101	  	10/15/05	  	4,733,664	  	03/29/88
	A-2808	  	USA (Div)	 	135,445	  	12/21/87	  	4,929,240	  	05/29/90
	F-2491	  	Australia	 	63250/86	  	09/30/86	  	593581	  	09/30/86
	F-2492	  	Brazil	 	PI86 05015	  	10/14/86	  		  	
	F-2501	  	Britain	 	8623961	  	10/06/06	  	2,181,356	  	09/27/89
	F-2493	  	Canada	 	519,371	  	09/30/86	  	1,280,329	  	02/19/91
	F-2494	  	France	 	86 14243	  	10/14/86	  	86,14243	  	12/29/89
	F-2495	  	Germany	 	P3633124.4	  	09/30/86	  		  	
	F-2496	  	India	 	268/BOM/86	  	09/24/86	  	165,360	  	09/24/86
	F-2497	  	Italy	 	84144 A/86	  	10/15/86	  	1,218,121	  	04/12/90
	F-2498	  	Japan	 	61-243339	  	10/15/86	  		  	
	F-2499	  	S. Africa	 	86/7462	  	09/30/86	  	86/1462	  	08/26/87
	F-2500	  	Sweden	 	86 04346-0	  	10/14/86	  		  	
	F-2500.D	  	Swed (Div)	 	90 00183-5	  	01/19/90	  		  	
	
	SYSTEM FOR APPLYING A DEFORMABLE PLASTIC CLIP (MC-036)
	A-3093	  	USA	 	07/319,297	  	03/06/89	  	4,983,176	  	01/08/91
	F-3806	  	China	 	90101229.7	  	03/06/90	  		  	
	
	F-3809.PCT – PCT/US90/01043 was filed 03/06/90 in Austria, Belgium, Federal Republic of Germany, France, United
Kingdom, Italy, Luxembourg, Netherlands, Sweden, and
Japan.
	
	EVERTING FORCEPS (MC-047)
	A-3293	  	USA	 	309,372	  	02/13/89	  	4,950,281	  	08/21/90
	F-3808	  	China	 	90100824.9	  	02/10/90	  		  	
	
	F-3811.PCT. – PCT/US90/01044 was filed 03/06/90. in Austria, Belgium, Switzerland and Liechtenstein, Federal Republic
of Germany, France, United Kingdom, Italy, Luxembourg,
Netherlands, Sweden, and Japan.
	
	MULTIPURPOSE SURGICAL TOOL (MC-048)
	A-3292	  	USA	 	07/479,567	  	02/14/90	  		  	
	
	F-3292.PCT – PCT/US91/00844 was filed 02/12/91 in Austria, Belgium, Switzerland and Liechtenstein, Federal Republic
of Germany, France, United Kingdom, Italy, Luxembourg,
Netherlands, Sweden, Canada, and Japan.
	
	NERVE ANASTOMOSIS SLING AND METHOD (MC-063)
	A-4032	  	USA	 	07/631,954	  	12/21/90	  		  	

  

 29

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