Document:

exv10w8

 

Exhibit 10.8

*** Confidential Treatment Requested. Confidential portions of this document have been redacted and have been separately filed with the Commission.

PCR

Patent
License Agreement

BY AND BETWEEN

Roche Molecular Systems, Inc.

AND

Genomic Health, Inc.

 

 

PATENT LICENSE AGREEMENT

(HUMAN)

CONTENTS

	 	 	 	 	 
	 	 	 	 	Page
	Background
	 	 	 	2
	 
	 	 	 	 
	Section 1
	 	Definitions 	 	3
	 
	 	 	 	 
	Section 2
	 	Grant 	 	5
	 
	 	 	 	 
	Section 3
	 	Additional Limitations & Acknowledgment re Diagnostic Products	 	6
	 
	 	 	 	 
	Section 4
	 	Royalties, Records and Reports 	 	6
	 
	 	 	 	 
	Section 5
	 	Technology Notification 	 	8
	 
	 	 	 	 
	Section 6
	 	Diligence 	 	8
	 
	 	 	 	 
	Section 7
	 	Term and Termination 	 	9
	 
	 	 	 	 
	Section 8
	 	Confidentiality-Publicity 	 	10
	 
	 	 	 	 
	Section 9
	 	Compliance 	 	11
	 
	 	 	 	 
	Section 10
	 	Assignment 	 	12
	 
	 	 	 	 
	Section 11
	 	Negation of Warranties and Indemnity 	 	12
	 
	 	 	 	 
	Section 12
	 	General 	 	13

	 	 	 
	Attachments:
	 	 
	 
	 	 
	Attachment I

	 	List of Licensed Technology
	 
	 	 
	Attachment II

	 	Combination Services
	 
	 	 
	Attachment III

	 	Summary Royalty Report Form
	 
	 	 
	Attachment IV

	 	Collection Rate

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PATENT LICENSE AGREEMENT

. (Human)

This Agreement is made by and between

Roche Molecular Systems, Inc., 4300 Hacienda Drive, Pleasanton, California 94588

(hereafter referred to as “RMS”)

and

Genomic Health, Inc., 301 Penobscot Drive, Redwood City, California 94604

(hereafter referred to as “GH”)

hereafter individually referred

to as a “Party” or collectively as “The Parties”

********

BACKGROUND

	A.  	RMS owns and has the right to grant licenses to practice under certain United States Patents
describing and claiming, inter alia, nucleic acid amplification processes known as polymerase
chain reaction (“PCR”), homogeneous PCR, and RT-PCR (“reverse transcription PCR”).
	 
	B.  	GH desires to obtain a non-exclusive license from RMS to use the Licensed Technology to
perform certain PCR-based human in vitro clinical laboratory services, and RMS is
willing to grant such a license to GH on the terms and subject to the conditions provided
exclusively in this Agreement.

NOW, THEREFORE, for and in consideration of the mutual covenants contained herein, RMS and GH agree
as follows:

 

 

	1.  	Definitions

For the purpose of this Agreement, and solely for that purpose, the terms set forth hereinafter
shall be defined as follows:

	1.1  	The term “Affiliate” shall mean with respect to a given Party:

	 	a)  	an organization which, directly or indirectly, controls such Party;
	 
	 	b)  	an organization which is, directly or indirectly, controlled by such Party; or
	 
	 	c)  	an organization which is controlled, directly or indirectly, by the ultimate
parent company which controls, directly or indirectly, such Party.

	   	For purposes of this paragraph, “control” shall mean the ownership of fifty percent (50%) or
more of the voting stock or equity interests of an organization or otherwise having the
power to govern or direct the financial and the operating policies or to appoint the
management of such organization.
	 
	   	With respect to RMS, the term “Affiliate” shall not include Genentech, Inc., 1 DNA Way,
South San Francisco, California 94080-4990, U.S.A. (“Genentech”) nor Chugai Pharmaceutical
Co., Ltd, 1-9, Kyobashi 2-chome, Chuo-ku, Tokyo, 104-8301 Japan (“Chugai”).
	 
	1.2  	“Combination Service” shall mean a Licensed Service offered in combination with another
non-PCR testing service or together with a non-testing service(s) such as a specialized
interpretive service or a consultative service (e.g., genetic counseling) as part of a
package, where the Licensed Service is not separately billed.
	 
	1.3  	“Diagnostic Product” shall mean an assemblage of reagents, including but not limited to
reagents packaged in the form of a kit, useful in performing a Licensed Service.
	 
	1.4  	“Effective Date” shall mean the date on which the last signatory to this Agreement signs
this Agreement.
	 
	1.5  	“Licensed Field” shall mean the field of clinical laboratory services that detect the
presence, absence and/or quantity of a nucleic acid sequence for the detection, diagnosis,
confirmation, prognosis, management and/or treatment of a human disease or condition,
including, but not limited to, such services: to identify predisposition to disease, disease
susceptibility, confirm disease, predict therapeutic effectiveness or monitor disease
progress; used in the course of human clinical trials; for Parentage Determination; and for
tissue transplant typing, including testing performed on animal tissue intended for use in
xenotransplantation. Licensed Field shall specifically exclude any services performed for the
screening of blood and/or blood products.

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	1.6  	“Licensed Service(s)” shall mean the performance by GH of an in vitro procedure
within the Licensed Field which utilizes the Licensed Technology. Licensed Services include,
but are not limited to, any combination of the steps of collecting a sample for analysis,
isolating nucleic acid sequences from the sample, amplifying one or more desired sequences,
analyzing the amplified material, including sequence analysis, and reporting the results.
	 
	1.7  	“Licensed Technology” shall mean, subject to the following limitations, the Valid Claims of
the United States patents listed in Attachment I to this Agreement and any reissue or
reexamination patents thereof. No rights under any kit claims of such patents are included
in this definition or licensed under this Agreement. With the exception of the reaction
mixture claims of United States Patents Nos. 5,804,375, 5,693,517, 5,476,774 and 6,127,155,
the plasmid claims of the 5,476,774 patent, the primer claims of United States Patent No.
5,573,906, and the probe claims of United States Patent No. 5,110,920, no rights under any
apparatus, device, composition of matter, reagent or substance claims of such patents are
included in this definition or licensed under this Agreement.
	 
	1.8  	“Net Service Revenues” shall mean the gross invoice price for the Licensed Services
performed by GH (or the fair market value for any nonmonetary consideration which
GH agrees to receive in exchange for Licensed Services), less the following deductions where
they are factually applicable and are not already reflected in the gross invoice price:

	 	a)  	discounts allowed and taken, in amounts customary in the trade (which shall
include the difference between the dollar amount charged by GH for a Licensed Service
and the Medicare and/or Medicaid Limits of Allowance and/or reimbursement limitations of
a Third Party insurance program); and
	 
	 	b)  	actual bad debt which bad debt GH can prove and document that it was reasonable
and diligent in its efforts to collect payment.

	 	1.8.1  	The Net Service Revenues of those Licensed Services that are
performed by GH for any person, firm or corporation controlling, controlled by
or under common control with GH, or enjoying a special course of dealing with
GH, shall be determined based on the average selling price of such Licensed
Services to all Third Parties during the period in question.
	 
	 	1.8.2  	It is hereby understood and agreed that, to the extent feasible,
Licensed Services and Combination Services shall at all times be invoiced,
listed and billed by GH as. a separate item in GH’s invoices, bills
and reports to customers. Net Service Revenues for determining royalties with
respect to a Licensed Service which is part of a Combination Service shall be
determined by multiplying the gross invoice price of the Combination Service,
less applicable deductions, by the appropriate fraction in Attachment II hereto.
The fraction specified in Attachment II for a particular Licensed Service
included in a Combination Service shall be set by RMS after consultation

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	 	   	with GH, as accurately reflecting the value contributed by the Licensed
Service to the overall value of the Combination Service as offered by GH, and
as provided in Section 2.4. Attachment II hereto shall be modified as new
Combination Services are identified and new royalty-bearing fractions set,
and as set forth in Section 2.4.

	1.9  	“Parentage Determination” shall mean analysis of human genetic material to ascertain
whether two or more individuals are biologically related, but specifically excludes analysis
of forensic evidence for a sexual assault investigation.
	 
	1.10  	“Territory” shall mean the United States and its possessions and the Commonwealth of Puerto
Rico.
	 
	1.11  	“Third Party” shall mean an entity other than an Affiliate of either Party to this
Agreement.
	 
	1.12  	"Valid Claim” shall mean a claim of a patent which has not expired or been disclaimed,
cancelled, held invalid or held unenforceable by a decision of a court or other governmental
agency of competent jurisdiction, from which no further appeal is possible or has
been taken within the time period provided under applicable law for such an appeal.

	2.  	Grant
	 
	2.1  	Grant. Upon the terms and subject to the conditions and restrictions of this
Agreement, RMS hereby grants to GH, and GH hereby accepts from RMS, a royalty-bearing,
non-exclusive, personal, non-transferable license under the Licensed Technology solely to
perform Licensed Services within the Territory.
	 
	2.2  	Performance of Licensed Services Only. The Licensed Technology may be used solely
for the performance of Licensed Services and for no other purpose whatsoever, and no other
right, immunity or license is granted to GH expressly, impliedly or by estoppel.
	 
	2.3  	Personal License. GH expressly acknowledges and agrees that the license granted
hereunder is personal to GH alone and GH shall have no right to sublicense, assign or
otherwise transfer or share its rights under the foregoing license.
	 
	2.4  	Combination Service(s). For each Combination Service that GH intends to offer
pursuant to this Agreement, and at least sixty (60) days before GH intends to offer any such
Combination Service, GH shall:

	 	a)  	notify RMS of such proposed Combination Service, such notice to include a
complete and detailed description of the proposed Combination Service; and
	 
	 	b)  	obtain from RMS a duly authorized agreement, in the form of Attachment II
hereto, for such Combination Service, which agreement shall indicate the fraction or

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*** Confidential material
redacted and filed separately with the Commission.

	 	   	percentage of the package price of such Combination Service, less appropriate
deductions, on which royalties shall be paid hereunder.

	   	For any Combination Service(s) for which GH has not satisfied the criteria set forth in
subsections (a) and (b) above, the royalty payable on such Combination Service shall be
assessed on 100% of the package price of such Combination Service, less applicable
deductions. As to all other Licensed Services offered by GH which are not part of a
Combination Service, GH agrees to inform RMS of the availability from GH of each such
Licensed Service within thirty (30) days after GH commences offering the Licensed Service.
	 
	2.5  	Credit for Licensed Technology Rights. RMS hereby grants to GH the right and GH
accepts and agrees to credit RMS as the source of its Licensed Technology rights in GH’s
promotional materials and any other materials intended for distribution to Third Parties as
follows:
	 
	   	“This service is performed pursuant to an agreement with Roche Molecular Systems, Inc.”
	 
	3.  	Additional Limitations and Acknowledgment Regarding Diagnostic Products

GH acknowledges and agrees that the license rights granted hereunder are for the performance of
Licensed Services only and do not include any right to make, have made, import, offer to sell or
sell any products, including apparatuses, devices, PCR reagents, kits or Diagnostic Products. GH
further acknowledges and agrees that RMS and its Affiliates are in the business of providing
clinical laboratory testing services and the commercial sale of diagnostic testing systems, kits
and reagents and therefore may compete directly with GH’s business.

	4.  	Royalties, Records and Reports
	 
	4.1  	Royalties. For the rights and privileges granted under Section 2.1 of this
Agreement, GH shall pay to RMS royalties equal to *** percent (***%) of GH’s Net Service Revenues.
	 
	   	No royalty is due on PCR-based assays performed solely for the purpose of evaluating a
procedure to be used as a Licensed Service after validation.
	 
	   	No royalty is due on assays performed with Roche labeled diagnostic kits or Third Party
diagnostics kits licensed by Roche, which convey human diagnostic label license rights to
end users.
	 
	4.2  	Reports. GH shall deliver to RMS, within forty-five (45) days after the end of and
for each quarterly calendar period during the Term, i.e. the three (3) month periods that are
January 1 through March 31, April 1 through June 30, July 1 through September 30, and October
1 through December 31 (each a “Reporting Period”), a true and accurate royalty report
(“Royalty Report”). Each Royalty Report shall indicate the number of Licensed Services
performed during the relevant Reporting Period and the detail specified on the “Summary

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	   	Royalty Report,” a copy of which is attached hereto as Attachment III, or on a form generated
by GH which duplicates the format of the Summary Royalty Report. If no royalties are due for
a given Royalty Period, it shall be so reported. The correctness and completeness of each
Royalty Report shall be attested to in writing by an authorized representative of GH.
	 
	   	In the event GH is unable to calculate Net Service Revenues as prescribed in Section 1.8, GH
shall so inform RMS, and upon RMS’s written consent, GH shall calculate royalties as follows:
	 
	   	Upon receipt by RMS of satisfactory documentation verifying GH’s actual percentage of gross
billings for Licensed Services and/or Combination Services collected for GH’s most recently
ended fiscal year (the “Collection Rate”), subject to the provisions of Section 2.4 above, GH
shall be permitted to calculate Net Service Revenues taking into account the Collection Rate.
As of the Effective Date, GH hereby represents and confirms to RMS that its Collection Rate
for its fiscal year ending  NA  was  NA  percent ( NA %), which rate
is specified in Attachment IV. During the Term of this Agreement, and within ninety (90)
days after the end of each GH fiscal year, GH shall deliver to RMS satisfactory documentation
that verifies the then Collection Rate. If GH’s Collection Rate varies by at least five
percent (5%) from the rate stated in Attachment IV, RMS shall amend Attachment IV
accordingly. Should GH fail to provide the required updated documentation, GH shall
calculate Net Service Revenues and royalties due as prescribed in Sections 1.8 and 2.4 for
the remaining Term of the Agreement.
	 
	   	Simultaneously with the delivery of each Royalty Report, GH shall pay to RMS the royalty due
under this Agreement for the period covered by such report. All payments due RMS hereunder
shall be payable in United States currency and sent together with the Royalty Report by the
due date to the following address:

	 	 	 
	

	 	Roche Molecular Systems, Inc.
	

	 	P.O. Box 100858
	

	 	Pasadena, CA 91189-0858

or to any other address that RMS may advise in writing.

	4.3  	Inspection. Within ten (10) days after RMS’s written request to GH, RMS or an
accounting firm selected by RMS (including, but not limited to, RMS’s normal certified public
accounting firm), may, at RMS’s own expense (except as provided below), inspect the
records, books of account and any other materials of GH pertaining to the Royalty Reports,
including without limitation any documentation supporting the royalty reports, required in
Section 4.2 above, provided that any accounting firm will hold such records in strict
confidence, except as necessary to report to RMS and GH on GH’s compliance with the terms,
conditions and restrictions of this Agreement. If such an inspection shows an underpayment by
GH to RMS by more than ten percent (10%) for any Reporting Period, GH will pay, in addition to
the amount due, plus interest, the accounting firm’s reasonable fees and expenses.

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	4.4  	Prior Licensed Services. Licensed Services performed by GH prior to execution of
this Agreement shall be subject to the royalties described in this Agreement and shall be
reported and due to RMS with the first Royalty Report due provided under Section 4.2.
Provided, however, that where this Agreement replaces an existing license agreement, the
royalty obligations of GH under this Agreement commence the first day of the month in which
this Agreement is executed.
	 
	4.5  	Past Due Amounts Bear Interest. If GH shall fail to pay any amount specified under
this Agreement after the due date thereof, the amount owed shall bear interest at the lower of
(i) the Citibank, N.A. base lending rate (aka, the “Prime
Rate”), or (ii) the maximum rate allowed by applicable law, from the due date until paid.
	 
	4.6  	Survival. The provisions of this Section 4 shall survive any termination or
expiration of this Agreement.
	 
	5.  	Technology Notification
	 
	5.1  	Notification. With respect to any invention, improvement or discovery (hereinafter
referred to as “Discoveries” in this Section) of GH made after entering into this Agreement
and resulting from work conducted under or in conjunction with this Agreement and being
applicable to the Licensed Technology, if GH decides to license said Discoveries to Third
Parties, then GH agrees to provide to RMS, unless not possible due to GH’s pre-existing
commitments to Third Parties relating to said Discoveries, a reasonable opportunity to
negotiate a license to use said Discoveries in PCR-based Diagnostic Products and services.
In such event, GH will provide written notice to RMS and GH and RMS will negotiate in good
faith for a period not to exceed six (6) months from the date of receipt by RMS of such
notice, reasonable commercial terms for such a license. If notwithstanding the good faith
efforts of the parties to reach agreement upon such terms, the parties are unable to agree
within such six (6) month period, then neither party will have any liability to the other for
failure to agree. Such Discoveries may include, but are not limited to, improvements of the
Licensed Technology or in the performance of Licensed Services, modifications to or new
methods of performing the Licensed Services, including the automation of the PCR process or of
the Licensed Services.
	 
	5.2  	Agreement re Discovery. Any agreement reached between The Parties as a result of
GH’s notification to RMS of a Discovery pursuant to Section 5.1 hereto shall be upon terms and
conditions negotiated in good faith by The Parties.
	 
	6.  	Diligence.
	 
	   	GH shall exercise reasonable diligence in developing, testing, validating, documenting,
promoting and performing the Licensed Services. In the course of such diligence, GH shall
implement appropriate procedures and take appropriate steps including, upon reasonable
written request of RMS, furnishing RMS with representative copies of all promotional material
relating to the Licensed Services.

7

 

	7.  	Term and Termination
	 
	7.1  	Term of Agreement. This Agreement shall commence on the Effective Date and, unless
terminated earlier as provided herein, shall terminate on the date of expiration of the last
to expire of the patents included within the -Licensed Technology, which patent contains at
least one Valid Claim covering the performance of a Licensed Service.
	 
	7.2  	GH Termination for Convenience. Notwithstanding any other Section of this Agreement,
GH may terminate this Agreement for any reason on thirty (30) days’ written notice to RMS.
	 
	7.3  	Termination for Change of Control, Etc. RMS shall have the right to terminate this
Agreement and the license rights granted herein immediately upon written notice to GH upon any
change in the ownership or control of GH or of its assets or in the event GH breaches the
provisions of Section 10 below. For such purposes, a “change in ownership or control” shall
mean that 50% or more of the voting stock of GH becomes subject to the control of a person or
entity, or any related group of persons or entities acting in concert, which person(s) or
entity(ies) did not control such proportion of voting stock as of the Effective Date of the
Agreement. Without limiting the foregoing, RMS shall have the right to terminate this
Agreement upon any transfer or sale of 50% or more of the assets of GH to another party.
	 
	7.4  	Termination for Insolvency, Etc. This Agreement and the license rights granted
hereunder to GH shall automatically terminate upon: (a) an adjudication of GH as bankrupt or
insolvent, or GH’s admission in writing of its inability to pay its obligations as they
mature; or (b) an assignment by GH for the benefit of creditors; or (c) GH’s applying for or
consenting to the appointment of a receiver, trustee or similar officer for any substantial
part of its business or property, or such a receiver, trustee or similar officer’s appointment
without the application or consent of GH, if such appointment shall continue in effect for a
period of ninety (90) days; or (d) GH’s instituting (by petition, application, answer, consent
or otherwise) any bankruptcy, insolvency arrangement or similar proceeding relating to GH or
its business or property under the laws of any jurisdiction; or (e) the institution of any
such proceeding (by petition, application, answer, consent or otherwise) against GH, if such
proceeding shall remain in effect for a period of ninety (90) days; or (f) the issuance or
levy of any judgment, writ, warrant of attachment or execution or similar process against a
substantial part of the property of GH, if such judgment, writ, or similar process shall not
be released, vacated or fully bonded within ninety (90) days after its issue or levy; or (g)
the loss of GH’s federal or state licenses, permits or accreditation necessary for the
operation of GH as a health care institution.
	 
	7.5  	Termination for Change of Status. If GH is a government institution or a non-profit
entity, this Agreement and the license rights granted to GH herein shall automatically
terminate within thirty (30) days of GH’s reclassification as a non-government institution, or
as a for-profit entity pursuant to the applicable provisions of the United States Internal
Revenue

8

 

	   	Code, 26 U.S.C. Upon such termination, GH may request a new license pursuant to the same
terms and conditions then being offered to other for-profit institutions, although RMS is not
obligated by anything contained in this Agreement to grant such a license.
	 
	7.6  	Termination for Breach. Upon any breach of or default by GH of a material term under
this Agreement, RMS may terminate this Agreement upon thirty (30) days’ written notice to GH.
Said termination shall
become effective at the end of the thirty-day period, unless during said period GH fully
cures such breach or default.
	 
	7.7  	Effects of Termination. Upon termination of this Agreement as provided herein, all
license rights and immunities granted to GH hereunder shall terminate and revert to or be
retained by RMS. To the extent RMS has licensed technology or know-how of GH pursuant to
Section 5 hereto; those licenses shall remain in force according to their terms. Other
provisions of this Agreement which by their nature would reasonably be expected to survive
termination shall so survive. Termination of this Agreement shall not relieve either Party
from any duty or obligation that had accrued prior to termination. Each Party shall retain
all of its rights and remedies in respect of any breach or default by the other party of the
terms, conditions and provisions of this Agreement.
	 
	7.8  	Duty to Report and Pay Royalties Survives. GH’s obligations to report to and pay
royalties to RMS as to the Licensed Services performed under the Agreement prior to
termination or expiration of the Agreement shall survive such termination or expiration.
	 
	8.  	Confidentiality-Publicity
	 
	8.1  	Publicity. Except as otherwise specifically provided in Section 2.5, GH agrees to
obtain RMS’s written approval before distributing any written information, such as a press
release, to Third Parties which contains references to RMS or this Agreement, with the
exception of filings required by securities law whether in connection with issuance of
securities or otherwise. RMS’s approval shall not be unreasonably withheld or delayed and, in
any event, RMS’s decision shall be rendered within three (3) weeks of receipt of the written
information. Once approved, such materials, or abstracts of such materials, which do not
materially alter the context of the material originally approved may be reprinted during the
Term of the Agreement without further approval by RMS unless RMS has notified GH in writing of
its decision to withdraw permission for such use.
	 
	8.2  	Confidentiality Obligations. Each Party agrees that any financial, legal or business
information or any technical information marked “Confidential” or “Proprietary” and disclosed
to it (the “Receiving Party”) by the other (the “Disclosing Party”) in connection with this
Agreement, shall be considered the confidential and proprietary information of the Disclosing
Party, and the Receiving Party shall not disclose same to any Third Party and shall hold it in
confidence for a period of five (5) years and will not use it other than in the performance of
this Agreement, provided, however, that any information, know-how or data which is orally
disclosed to the Receiving Party shall not be considered confidential and

9

 

	   	proprietary unless such oral disclosure is stated to be confidential or proprietary prior to
disclosure and is reduced to writing and given to the Receiving Party in written form within
thirty (30) days after the oral disclosure thereof. Such confidential and proprietary
information shall include, without limitation, marketing and sales information,
commercialization plans and strategies, research and development work plans, and technical
information such as patent applications, inventions, trade secrets, systems, methods,
apparatus, designs, tangible material, organisms and products and derivatives thereof.

	8.3  	Exceptions. The above obligations of confidentiality and restrictions on use shall
not be applicable to the extent:

	 	a)  	such information is general public knowledge or, after disclosure hereunder,
becomes general or public knowledge through no fault of the Receiving Party;
	 
	 	b)  	such information can be shown by the Receiving Party by its written records to have
been in its possession, with no obligation of confidentiality to a Third Party, prior to
receipt thereof hereunder;
	 
	 	c)  	such information is received by the Receiving Party from any Third Party for use or
disclosure by the Receiving Party without any obligation of confidentiality or
restriction on use, provided, however, that information received by the Receiving Party
from any Third Party funded by the Disclosing Party (e.g. consultants, subcontractors,
etc.) shall not be released from confidentiality under this exception;
	 
	 	d)  	such information was independently developed by the Receiving Party without use of
the information of the Disclosing Party; or
	 
	 	e)  	the disclosure of such information is required or desirable to comply with or
fulfill applicable law or court process, governmental requirements, submissions to
governmental bodies, or the securing of regulatory approvals.

	8.4  	Confidentiality of Agreement. Each Party shall, to the extent reasonably
practicable, maintain the confidentiality of this Agreement and its provisions and shall
refrain from making any public announcement or disclosure of the terms of this Agreement
without the prior written consent of the other Party, except to the extent a Party concludes
in good faith that such disclosure is required under applicable law or regulations, in which
case the other Party shall be notified in advance. The Parties hereby acknowledge that this
Agreement may be deemed a “material agreement” by GH, and accordingly must be disclosed in an
appropriate public filing or filings with the Securities and Exchange Commission, and/or other
regulatory agencies, including on Forms 8-K, 10-Q and 10-K. Furthermore, The Parties
acknowledge and agree that GH may file the text of this Agreement in conjunction with such
regulatory filings. GH agrees to take reasonable measures to seek confidential treatment of
the Agreement in such filings, and redact certain provisions, including the

10

 

	   	removal of the royalty rate, as appropriate. No further prior notification to RMS shall be
required by GH under this Section 8.4
	 
	9.  	Compliance with Law

In exercising any and all rights and in performing its obligations hereunder, GH shall comply fully
with any and all applicable laws, regulations and ordinances and shall obtain and keep in effect
all applicable licenses, permits and other governmental approvals, whether at the federal, state or
local levels, necessary or appropriate to perform the Licensed Services and carry on its activities
hereunder and GH hereby agrees to defend, indemnify and hold RMS and its Affiliates harmless from
and against any and all liability, demands, damages, expenses (including attorneys’ and experts’
fees) and losses suffered or incurred by RMS or its            Affiliates            arising from, resulting
from or otherwise concerning any breach by GH of its obligations under this Section 9. GH further
agrees to refrain from any activities that would have an adverse effect on the business reputation
of RMS. RMS may advise GH of any such activities and GH will have thirty (30) days to correct any
such activity.

	10.  	Assignment

This Agreement shall not be assigned or transferred by GH (including by merger, operation of law or
in any other manner including, without limitation, any purported assignment or transfer that might
arise from a sale or transfer of GH’s business or assets) without the express written consent of
RMS. RMS may assign all or any part of its rights and obligations under this Agreement at any time
without the consent of GH. GH agrees to execute such further acknowledgments or other instruments
as RMS may reasonably request in connection with any such assignment.

	11.  	Negation of Warranties and Indemnity
	 
	11.1  	Nothing in this Agreement shall be construed as:

	 	a)  	a warranty or representation by RMS as to the validity or scope of
any patent included within the Licensed Technology;
	 
	 	b)  	a warranty or representation that the use of the Licensed
Technology and/or the performance of Licensed Services are or will be free from
infringement of patents of Third Parties;
	 
	 	c)  	an obligation to bring or prosecute actions or suits against Third
Parties for infringement; or
	 
	 	d)  	conferring by implication, estoppel or otherwise any license, right
or immunity under any patents or patent applications of RMS other than those
patents specified in Licensed Technology, regardless of whether such other

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	 	   	patents and patent applications are dominant or subordinate to the patents in
Licensed Technology.

	11.2  	RMS MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE OR NON-INFRINGEMENT.
	 
	11.3  	GH shall assume full responsibility for its use of the Licensed Technology and shall defend,
indemnify and hold RMS and its Affiliates harmless from and against all liability, demands,
damages, expenses (including attorneys’ and experts’ fees) and losses for death, personal
injury, illness, errors, property damage or any other injury or damage, including any damages
or expenses arising in connection with state or federal regulatory action (collectively
“Damages”), arising or resulting from or otherwise concerning the use by GH, including its
officers, directors, agents and employees, of the Licensed Technology or the performance of
the Licensed Services except, and only to the extent, that such Damages are caused solely by
the negligence or willful misconduct of RMS.
	 
	12.  	General
	 
	12.1  	Entire Agreement. This Agreement constitutes the entire agreement between The
Parties as to the subject matter hereof, and all prior negotiations, representations,
agreements and understandings are merged into, extinguished by and completely expressed by it.
This Agreement may be modified or amended only by a writing executed by an authorized officer
of each of The Parties.
	 
	12.2  	Notice. Any notice required or permitted to be sent hereunder shall be given by hand
delivery, by registered, express or certified mail, return receipt requested, postage prepaid,
or by nationally recognized private express courier or by confirmed facsimile to the other
Party at the address listed below, or to such other addresses of which a Party may so notify
the other. Notices will be deemed given when hand delivered if by hand delivery, or when
received if by any other authorized method.

	 	 	 
	If to RMS:

	 	Roche Molecular Systems, Inc.
	

	 	1145 Atlantic Avenue, Suite 100
	

	 	Alameda, California 94501
	

	 	Attn: Licensing Department
	 
	 	 
	RMS cc:

	 	Roche Molecular Systems, Inc.
	

	 	1145 Atlantic Avenue, Suite 100
	

	 	Alameda, California 94501
	

	 	Attn: Sr. Vice President, General Counsel
	 
	 	 

	 	 	 	 	 	 	 
	If to GH:	 	Genomic Health, Inc.	 	 
	 	 	301 Penobscot Drive	 	 
	 	 	Redwood City, California 94063	 	 
	

	 	Attn:	 	 	 	 
	

	 	 	 	 	 	 

12

 

	12.3  	No Conflict with Law. Nothing in this Agreement shall be construed so as to require
the commission of any act contrary to law, and wherever there is any conflict between any
provision of this Agreement or concerning the legal right of The Parties to enter into this
Agreement and any statute, law, ordinance or treaty, the latter shall prevail, but in such
event the affected provisions of the Agreement shall be curtailed and limited only to the
extent necessary to bring it within the applicable legal requirements. In any event, all other
provisions of this Agreement shall be deemed valid and enforceable to the fullest extent
possible.
	 
	12.4  	Superceding Agreement. Concurrent with the execution of this Agreement, and
effective as of the Effective Date herein, the Expanded PCR Diagnostic Services Agreement
effective October 1, 2002, is hereby superceded and replaced in its entirety by this
Agreement.

IN WITNESS WHEREOF, The Parties hereto have set their hands and seals and duly executed this
Agreement on the date(s) indicated below, to be effective as of the Effective Date as defined
herein.

	 	 	 	 	 	 	 	 	 	 	 
	Roche Molecular Systems, Inc.	 	 	 	Genomic Health, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Melinda Griffith
	 	 	 	By:
	 	/s/ Randy Scott
	 	 
	

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Melinda Griffith
	 	 	 	Name:
	 	Randy Scott	 	 
	

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	Sr. Vice President & General Counsel
	 	 
	 	Title:
	 	CEO	 	 
	

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	Feb. 21, 2005
	 	 	 	Date:
	 	2/25/05	 	 
	

	 	 
	 	 	 	 	 	 	 	 

Apprv’d As to Form

RMS LAW DEPT.

By: [signature illegible]

13exv10w9w1

 

Exhibit 10.9.1

Master Security Agreement

MASTER SECURITY AGREEMENT

No. 5081084

Dated as of March 30, 2005 (“Agreement”)

     THIS AGREEMENT is between Oxford Finance Corporation (together with its successors and
assigns, if any, “Secured Party”) and Genomic Health, Inc. (“Debtor”). Secured Party has an office
at 133 N. Fairfax Street, Alexandria, VA 22314. Debtor is a corporation organized and existing
under the laws of the state of Delaware. Debtor’s mailing address and chief place of business is
301 Penobscot Drive, Redwood City, CA 94063.

1. CREATION OF SECURITY INTEREST.

     Debtor grants to Secured Party, its successors and assigns, a security interest in and against
the Collateral (as that term is defined herein). This security interest is given to secure the
payment and performance of all debts, obligations and liabilities of any kind whatsoever of Debtor
to Secured Party, now existing or arising in the future, including but not limited to the payment
and performance of certain Promissory Notes from time to time executed by Debtor (collectively
“Notes” and each a “Note”), and any renewals, extensions and modifications of such debts, obligations and liabilities (such Notes, debts, obligations and liabilities are called
the “Indebtedness”). Unless otherwise provided by applicable law, notwithstanding anything to the
contrary contained in this Agreement, to the extent that Secured Party asserts a purchase money
security interest in any items of Collateral (the “PMSI Collateral”): (i) the PMSI Collateral shall
secure only that portion of the Indebtedness which has been advanced by Secured Party to enable
Debtor to purchase, or acquire rights in or the use of such PMSI Collateral (the “PMSI
Indebtedness”), and (ii) no other Collateral shall secure the PMSI Indebtedness.

2. REPRESENTATIONS, WARRANTIES AND COVENANTS OF DEBTOR.

     Debtor represents, warrants and covenants as of the date of this Agreement and as of the date
of each Note that:

	 	(a)  	Due Organization. Debtor’s exact legal name is as set forth in the
preamble of this Agreement and Debtor is, duly organized, existing and in good standing
under the laws of the State set forth in the preamble of this Agreement, has its chief
executive offices at the location specified in the preamble, and is, and will remain
duly qualified and licensed in every jurisdiction wherever necessary to carry on its
business and operations;
	 
	 	(b)  	Power and Capacity to Enter Into and Perform Obligations. Debtor has
adequate power and capacity to enter into, and to perform its obligations under this
Agreement, each Note and any other documents evidencing, or given in connection with,
any of the Indebtedness (all of the foregoing are called the “Debt Documents”);
	 
	 	(c)  	Due Authorization. This Agreement and the other Debt Documents have been
duly authorized, executed and delivered by Debtor and constitute legal, valid and
binding agreements enforceable in accordance with their terms, except to the extent that
the enforcement of remedies may be limited under applicable bankruptcy and insolvency
laws;
	 
	 	(d)  	Approvals and Consents. No approval, consent or withholding of
objections is required from any governmental authority or instrumentality with respect
to the entry into, or performance by Debtor of any of the Debt Documents, except any
already obtained;
	 
	 	(e)  	No Violations or Defaults. The entry into, and performance by, Debtor of
the Debt Documents will not (i) violate any of the organizational documents of Debtor or
any judgment, order, law or regulation applicable to Debtor, or (ii) result in any
material breach of or constitute a material default under any contract to which Debtor
is a party, or result in the creation of any lien, claim or encumbrance on any of
Debtor’s property (except for liens in favor of Secured Party) pursuant to any
indenture, mortgage, deed of trust, bank loan, credit agreement, or other agreement or
instrument to which Debtor is a party;
	 
	 	(f)  	Litigation. There are no suits or proceedings pending in court or before
any commission, board or other administrative agency against or affecting Debtor which
could, in the aggregate, have a material adverse effect on Debtor, its business or
operations, or its ability to perform its obligations under the Debt Documents (a
“Material Adverse Effect”), nor does Debtor have reason to believe that any such suits
or proceedings are threatened;
	 
	 	(g)  	Solvency. The fair salable value of Debtor’s assets (including goodwill
minus disposition costs) exceeds the fair value of its liabilities; Debtor is not left
with unreasonably small capital after the transactions in this Agreement or any Notes
and Debtor is able to pay its debts (including trade debts) as they mature.
	 
	 	(h)  	Financial Statements Prepared In Accordance with GAAP. All financial
statements delivered to Secured Party in connection with the Indebtedness have been
prepared in accordance with generally accepted accounting principles, and since the date
of the most recent financial statement, there has been no Material Adverse Change (as
hereinafter defined) in Debtors financial condition;
	 
	 	(i)  	Use of Collateral. The Collateral is not, and will not be, used by
Debtor for personal, family or household purposes;
	 
	 	(j)  	Collateral in Good Condition and Repair. The Collateral is, and will
remain, in good condition and repair and Debtor will not be negligent in its care and
use;
	 
	 	(k)  	Ownership of Collateral. Debtor is, and will remain, the sole and lawful
owner, and in possession of the Collateral, and has the sole right and lawful authority
to grant the security interest described in this Agreement;
	 
	 	(l)  	Encumbrances. The Collateral is, and will remain, free and clear of all
liens, claims and encumbrances of any kind whatsoever, except for (i) liens in favor of
Secured Party, (ii) liens for taxes not yet due or for taxes being contested in good
faith and which do not involve, in the reasonable judgment of Debtor, any material risk
of the sale, forfeiture or loss of any of the Collateral and for which adequate reserves
have been established, and (iii) inchoate material men’s, mechanic’s, repairmen’s and
similar liens arising by operation of law in the normal course of business for amounts
which are not delinquent (all of such liens are called “Permitted Liens”);

	 	 	 
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Master Security Agreement

	 	(m)  	Taxes. All federal, state and local tax returns required to be filed by
Debtor have been filed with the appropriate governmental agencies and all taxes due and
payable by Debtor have been timely paid. Debtor will pay when due all taxes, assessments
and other liabilities except as contested in good faith and by appropriate proceedings
and for which adequate reserves have been established;
	 
	 	(n)  	No Defaults. No event or condition exists under any material agreement,
instrument or document to which Debtor is a party or may be subject, or by which Debtor
or any of its properties are bound, which constitutes a default or an event of default
thereunder, or will, with the giving of notice, passage of time, or both, would
constitute a default or event of default thereunder, where such default or event of
default would have a Material Adverse Change;
	 
	 	(o)  	Certification of Financial Information. All reports, certificates,
schedules, notices and financial information submitted by Debtor to the Secured Party
pursuant to this Agreement shall be certified as true and correct by the president or
chief financial officer of Debtor; and
	 
	 	(p)  	Notice of Material Adverse Change. Debtor shall give the Secured Party
prompt written notice of any event, occurrence or other matter which has resulted or may
result in a material adverse change in its financial condition, business operations,
prospects, product development, technology, or business or contractual relations with
third parties of Debtor which change would impair the ability of Debtor to perform its
obligations hereunder or under any of the other Debt Documents or of Secured Party to
enforce the Indebtedness or realize upon the Collateral (a “Material Adverse Change”).
	 
	 	(q)  	Transactions with Affiliates. Debtor shall not, without the prior
written consent of Security Party, directly or indirectly enter into or permit to exist
any material transaction with any Affiliate of Debtor except for transactions that are
in the ordinary course of Debtor’s business, upon fair and reasonable terms that are no
less favorable to Debtor than would be obtained in an arm’s length transaction with a
nonaffiliated Person.
	 
	 	(r)  	Subsidiary. Debtor hereby represents and warrants that it has only one
subsidiary, while subsidiary’s exact legal name is Oncotype Laboratories, Incorporated
(the “Subsidiary”. Debtor further represents and warrants that the Subsidiary is
not currently an active business and owns no assets. The Debtor covenants and agrees
not to cause or allow the Subsidiary to become an active business or to owning assets
without providing the Secured Party with not less than thirty days’ prior written
notice and executing and delivering such documents, agreements and instruments as
Secured Party requests in order to, at Secured Party’s option, join the Subsidiary as
a co-Debtor hereunder and under the other Debt Documents or cause the Subsidiary to
become a guarantor of the Indebtedness, and to grant a lien on all of the Subsidiary’s
assets in favor of Secured Party.
	 
	 	(s)  	Primary Account and Wire Transfer Instructions. Debtor maintains its
Primary Account (the “Primary Operating Account”) and the Wire Transfer Instructions for
the Primary Operating Account are as follows:

	 	   	Silicon Valley Bank

3003 Tasman Drive

Santa Clara, CA 95054

ABA No.: 121140399

Account No.: 3300248193

Account Name: Genomic Health, Inc.

	   	Debtor hereby agrees that Loans will be advanced to the account specified above and regularly
scheduled payments will be automatically debited from the same account. In addition to the
Primary Operating Account identified hereinabove, Debtor maintains the following other
deposit and investment accounts:

	 	a.  	Silicon Valley Bank Securities
	 	 	3003 Tasman Drive

Santa Clara, CA 95054

ABA No.: 121000358 (SVB Securities clears through B of A)

Account No.: 886-00767-1-3ZGQ

Account Name: Genomic Health, Inc.
	 
	 	   	Bank of America

530 Lytton Avenue, 2nd Floor

Palo Alto, CA 94301-1539

ABA No.: 121000358

Account No.: 14996-08284

Account Name: Genomic Health, Inc.

3. COLLATERAL.

The Debtor, covenants and agrees that, so long as any of the Debt Documents shall remain in
effect, or unless the Secured Party shall otherwise consent in writing:

	 	(a)  	Possession or Control of Collateral; Inspection of Collateral. Except to the
extent Secured Party exercises any remedy it may have in connection with a default by
Debtor, Debtor shall remain in possession of the Collateral; except that Secured Party
shall have the right to possess (i) any chattel paper or instrument that constitutes a
part of the Collateral, and (ii) any other Collateral in which Secured Party’s security
interest may be perfected only by possession. Secured Party may inspect any of the
Collateral during normal business hours after giving Debtor reasonable prior notice.
	 
	 	(b)  	Maintenance. Debtor shall (i) use the Collateral only in its trade or
business, (ii) maintain all of the Equipment in good operating order and repair, normal
wear and tear excepted, (iii) use and maintain the Equipment only in compliance with
manufacturers recommendations and all applicable laws, and (iv) keep all of the Collateral
free and clear of all liens, claims and encumbrances (except for Permitted Liens).
	 
	 	(c)  	Disposition of Collateral. Secured Party does not authorize and Debtor agrees
it shall not (i) part with posession of any of the Collateral (except to Secured Party),
(ii) remove any of the Collateral from the continental United States, or (iii) sell, rent,
lease, mortgage, license, grant a security interest in or otherwise transfer or encumber
(except for Permitted Liens) any of the Collateral.

	 	 	 
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	 	(d)  	Taxes. Debtor shall pay promptly when due all taxes, license fees, assessments
and public and private charges levied or assessed on any of the Collateral, on its use, or
on this Agreement or any of the other Debt Documents, excluding any of the foregoing
measured by the income of Secured Party. At its option, while any default hereunder has
occurred and is continuing, Secured Party may discharge taxes, liens, security interests or
other encumbrances at any time levied or placed on the Collateral and may pay for the
maintenance, insurance and preservation of the Collateral and effect compliance with the
terms of this Agreement or any of the other Debt Documents. Debtor agrees to reimburse
Secured Party, on demand, for all reasonable costs and expenses incurred by Secured Party
in connection with such payment or performance and agrees that such reimbursement
obligation shall constitute Indebtedness.
	 
	 	(e)  	Books and Records. Debtor shall, at all times, keep accurate and complete
records of the Collateral, and Secured Party shall have the right to inspect and make
copies of all of Debtor’s books and records relating to the Collateral during normal
business hours, after giving Debtor reasonable prior notice.
	 
	 	(f)  	Third Party Possession of Collateral. Debtor agrees and acknowledges that any
third person who may at any time possess all or any portion of the Collateral shall be
deemed to hold, and shall hold, the Collateral as the agent of, and as pledge holder for,
Secured Party. Secured Party may at any time give notice to any third person described in
the preceding sentence that such third person is holding the Collateral as the agent of,
and as pledge holder for, the Secured Party.
	 
	 	(g)  	Change of Address. All of the Collateral is located in and will in the future
be in the possession of the Debtor at its address stated above or at such other addresses
as may be set forth on the attached Schedule A. The Debtor has not at any time within the
past four (4) months either (a) maintained Equipment or (b) maintained its chief executive
office or its records with respect to the Collateral at any other location and shall not do
so hereafter except with the prior written consent of the Secured Party. The Secured Party
shall be entitled to rely upon the foregoing unless it receives 14 days’ advance written
notice of a change in the address of the Debtor’s executive offices or location of the
Collateral.
	 
	 	(h)  	Fixtures. Not permit any item of the Equipment to become a fixture to real
estate or an accession to other property without the prior written consent of the Secured
Party, and the Equipment is now and shall at all times remain personal property except with
the Secured Party’s prior written consent. If any of the Collateral is or will be attached
to real estate in such a manner as to become a fixture under applicable state law and if
such real estate is encumbered, the Debtor will obtain from the holder of each Lien or
encumbrance a written consent and subordination to the security interest hereby granted, or
a written disclaimer of any interest in the Collateral, in a form acceptable to the Secured
Party. Notwithstanding the forgoing, Secured Party waives the requirement to obtain a
waiver from each and every landlord in connection with the first advance and may, at its
option, require a waiver for future advances.
	 
	 	(i)  	Chattel Paper. Promptly, upon request by the Secured Party, deliver, assign,
and endorse to the Secured Party all chattel paper and all other documents included in the
Collateral held by the Debtor in connection therewith.
	 
	 	(j)  	Cost Accounting and Procurement Systems. The Debtor’s cost accounting and
procurement systems are and at all times have been, and will continue to be, in compliance
with all applicable requirements.
	 
	 	(k)  	Domain Name. Take the necessary or appropriate steps to ensure that the
identity and location of the servers used in connection with the Debtor’s domain name and
the identity of the party having control over the domain name server and of the
administrative contact with the registry have been disclosed to the Secured Party. The
Debtor shall not change the domain name server without notification to the Secured Party.
The Debtor shall maintain the trademark of the domain name by defending against any
infringement suits and by policing the trademark. The Debtor shall renew the domain name
registration during the loan term. The Debtor shall make all payments to the domain name
registrar necessary to maintain the domain name.

4. INSURANCE.

	 	(a)  	Risk of Loss. Debtor shall at all times bear the entire risk of any loss,
theft, damage to, or destruction of, any of the Collateral from any cause whatsoever.
	 
	 	(b)  	Insurance Requirements. Debtor agrees to maintain general liability insurance
and to keep the Collateral insured against loss or damage by fire and extended coverage
perils, theft, burglary, risk of loss by collision (for any or all Collateral which are
vehicles) and such other risks as Secured Party may reasonably require. The liability
insurance coverage shall be in an amount standard for companies similar to Debtor in
Debtor’s industry in Debtor’s geographic region. The property insurance coverage shall be
in an amount no less than the full replacement value of the Collateral. All insurance
policies shall be in a form, with companies and with deductible amounts, acceptable to
Secured Party. Debtor shall deliver to Secured Party policies or certificates of insurance
evidencing such coverage. Each policy shall name Secured Party as a loss payee and an
additional insured, shall provide for coverage to Secured Party regardless of the breach by
Debtor of any warranty or representation made therein, shall not be subject to
co-insurance, and shall provide that coverage may not be canceled or altered by the insurer
except upon thirty (30) days prior written notice to Secured Party. Debtor appoints
Secured Party as its attorney-in-fact to make proof of loss, claim for insurance and
adjustments with insurers, and to receive payment of and execute or endorse all documents,
checks or drafts in connection with insurance payments. Secured Party shall not act as
Debtor’s attorney-in-fact unless Debtor is in default. Proceeds of insurance shall be
applied, at the option of Secured Party, to repair or replace the Collateral or to reduce
any of the Indebtedness.

5. REPORTS.

	 	(a)  	Notice of Events. Debtor shall promptly notify Secured Party of (i) any change
in the name of Debtor, (ii) any change in the state of its incorporation or registration,
(iii) any relocation of its chief executive offices, (iv) any of the Collateral being
lost, stolen, missing, destroyed, materially damaged or worn out, or (v) any lien, claim or
encumbrance other than Permitted Liens attaching to or being made against any of the
Collateral.
	 
	 	(b)  	Financial Statements, Reports and Certificates. Debtor will deliver to Secured
Party within one hundred fifty (150) days of the close of each fiscal year of Debtor,
Debtor’s complete financial statements including a balance sheet, income statement,
statement of shareholders’ equity and statement of cash flows, each prepared in accordance
with generally accepted accounting principles consistently applied, certified by a
recognized firm of certified public accountants satisfactory to Secured Party. Debtor will
deliver to Secured Party copies of Debtor’s quarterly financial statements including a
balance sheet, income statement and statement of cash flows, each prepared by Debtor in
accordance with generally accepted accounting principles consistently applied by Debtor and
certified by Debtor’s chief financial officer, within ninety (90) days after the close of
each of Debtor’s fiscal quarter. Debtor will deliver to Secured Party copies of all Forms
10-K and 10-Q, if any, within 30 days after the dates on which they are filed with the
Securities and Exchange Commission. Debtor will deliver to Secured Party copies of
Debtor’s monthly financial statements including a balance sheet and income statement, each
prepared by Debtor in

	 	 	 
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	   	accordance with generally accepted accounting principles consistently applied by Debtor and
certified by Debtor’s chief financial officer, within forty-five (45) days after the close of
each month. Concurrently with delivery of the foregoing information, and from time to time
promptly upon request of Secured Party, Debtor will deliver to Secured Party a Compliance
Certificate substantially consistent with the form of the document attached hereto as
Schedule B. Debtor will deliver to Secured Party promptly upon request of Secured Party, in
form satisfactory to Secured Party, such other and additional information as Secured Party
may reasonably request from time to time.

6. FURTHER ASSURANCES.

	 	(a)  	Further Assurances Regarding Security Interests. Debtor shall, upon request of
Secured Party, furnish to Secured Party such further information, execute and deliver to
Secured Party such documents and instruments (including, without limitation, Uniform
Commercial Code financing statements) and shall do such other acts and things as Secured
Party may at any time reasonably request relating to the perfection or protection of the
security interest created by this Agreement or for the purpose of carrying out the intent
of this Agreement. Without limiting the foregoing, Debtor shall cooperate and do all acts
reasonably deemed necessary or advisable by Secured Party to continue in Secured Party a
perfected first security interest in the Collateral, and shall obtain and furnish to
Secured Party any subordinations, releases, landlord waivers, lessor waivers, mortgagee
waivers, or control agreements, and similar documents as may be from time to time requested
by, and in form and substance satisfactory to, Secured Party.
	 
	 	(b)  	Authorization To File Financial Statements. Debtor shall perform any and all
acts reasonably requested by the Secured Party to establish, maintain and continue the
Secured Party’s security interest and liens in the Collateral, including but not limited
to, executing or authenticating financing statements and such other instruments and
documents when and as reasonably requested by the Secured Party. Debtor hereby authorizes
Secured Party through any of Secured Party’s employees, agents or attorneys to file any and
all financing statements, including, without limitation, any original filings,
continuations, transfers or amendments thereof required to perfect Secured Party’s security
interest and liens in the Collateral under the UCC without authentication or execution by
Debtor. Debtor hereby irrevocably authorizes the Secured Party at any time and from time to
time to (a) file in any filing office in any Uniform Commercial Code jurisdiction any
initial financing statement(s) and amendments thereto that covers the Collateral and (b)
provide any other information required by part 5 of Article 9 of the Uniform Commercial
Code of the State or such other jurisdiction for the sufficiency or filing office
acceptance of any financing statement or amendment, including (i) whether the Debtor is an
organization, the type of organization and any organization identification number issued to
the Debtor, and (ii) in the case of a financing statement filed as a fixture filing, a
sufficient description of real property to which the Collateral relates. The Debtor agrees
to furnish any such information to the Secured Party promptly upon the Secured Party’s
request.
	 
	 	(c)  	Indemnification. Debtor shall indemnify and defend the Secured Party, its
successors and assigns, and their respective directors, officers and employees (each an
“Indemnified Party”), from and against all claims, actions and suits (including, without
limitation, related reasonable attorneys’ fees) of any kind whatsoever arising, directly or
indirectly, in connection with any of the Collateral, except to the extent any such claim,
action or suit arises out of the gross negligence or willful misconduct of an Indemnified
Party.

7. DEFAULT AND REMEDIES.

	 	(a)  	Defaults. Debtor shall be in default under this Agreement and each of the
other Debt Documents if any of the following events or conditions cannot be cured within 5
days of when the event or condition occurred:

	 	i.  	Debtor breaches its obligation to pay when due any installment or other amount
due or coming due under any of the Debt Documents;
	 
	 	ii.  	Debtor, without the prior written consent of Secured Party, attempts to or does
sell, rent, lease, license, mortgage, grant a security interest in, or otherwise
transfer or encumber (except for Permitted Liens) any of the Collateral;
	 
	 	iii.  	Debtor breaches the covenant set forth in the fourth sentence of Section 4(b)
within 5 days after the written request for such policies or certificate of insurance by
Secured Party or Debtor breached any of its other insurance obligations under Section 4;
	 
	 	iv.  	Debtor breaches any of its other non-payment obligations under any of the Debt
Documents and fails to cure that breach within thirty (30) days after written notice
from Secured Party;
	 
	 	v.  	Any warranty, representation or statement made by Debtor in any of the Debt
Documents or otherwise in connection with any of the Indebtedness shall be false or
misleading in any material respect;
	 
	 	vi.  	Any of the Collateral is subjected to attachment, execution, levy, seizure or
confiscation in any legal proceeding or otherwise, or if any legal or administrative
proceeding is commenced against Debtor or any of the Collateral, which in the good faith
judgment of Secured Party subjects any of the Collateral to a material risk of
attachment, execution, levy, seizure or confiscation and no bond is posted or protective
order obtained to negate such risk;
	 
	 	vii.  	Debtor breaches or is in default under any other agreement between Debtor and
Secured Party and fails to cure that breach within thirty (30) days after written notice
from Secured Party;
	 
	 	viii.  	Debtor or any guarantor or other obligor for any of the Indebtedness
(collectively “Guarantor”) dissolves, terminates its existence, becomes insolvent or
ceases to do business as a going concern;
	 
	 	ix.  	Debtor or any Guarantor is a natural person, Debtor or any such Guarantor dies or
becomes incompetent;
	 
	 	x.  	A receiver is appointed for all or of any part of the property of Debtor or any
Guarantor, or Debtor or any Guarantor makes any assignment for the benefit of creditors;
	 
	 	xi.  	Debtor or any Guarantor files a petition under any bankruptcy, insolvency or
similar law, or any such petition is filed against Debtor or any Guarantor and is not
dismissed within forty-five (45) days;
	 
	 	xii.  	Debtor’s improper filing of an amendment or termination statement relating to a
filed financing statement describing the Collateral.

	 	 	 
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	 	xiii.  	Debtor shall merge with or consolidate into any other entity or sell all or
substantially all of its assets or in any manner terminate its existence;
	 
	 	xiv.  	If Debtor is a privately held corporation, more than 50% of Debtor’s voting
capital stock, or effective control of Debtor’s voting capital stock, issued and
outstanding from time to time, is not retained by the holders of such stock on the date
the Agreement is executed;
	 
	 	xv.  	If Debtor is a publicly held corporation, there shall be a change in the
ownership of Debtor’s stock such that Debtor is no longer subject to the reporting
requirements of the Securities Exchange Act of 1934 or no longer has a class of equity
securities registered under Section 12 of the Securities Act of 1933;
	 
	 	xvi.  	Debtor defaults under any other financing arrangement between Debtor and a third
party which results in a Material Adverse Change;
	 
	 	xvii.  	Secured Party shall have determined in its sole and good faith judgment that (a)
it is the clear intention of Debtor’s investors to not continue to fund the Debtor in
the amounts and timeframe necessary to enable Debtor to satisfy the Indebtedness as it
becomes due and payable or (b) there is a material impairment in the perfection or
priority of the Secured Party’s security interest in the Collateral; or
	 
	 	xviii.  	Secured Party shall have determined in its sole and good faith judgment that there has
been a material adverse change in the financial condition, business, operations,
prospects, product development, technology, or business or contractual relations with
third parties of Debtor from the date hereof, or a change or event shall have occurred
which would impair the ability of Debtor to perform its obligations hereunder or under
any of the other financing agreements to which it is a party or of Secured Party to
enforce the Indebtedness or realize upon the Collateral;

	 	(b)  	Acceleration. If Debtor is in default, the Secured Party, at its option, may
declare any or all of the Indebtedness to be immediately due and payable, without demand or
notice to Debtor or any guarantor. The accelerated obligations and liabilities shall bear
interest (both before and after any judgment) until paid in full at the lower of eighteen
percent (18%) per annum or the maximum rate not prohibited by applicable law.
	 
	 	(c)  	Rights and Remedies. Secured Party shall have all of the rights and remedies
of a Secured Party under the Uniform Commercial Code, and under any other applicable law.
Without limiting the foregoing, Secured Party shall have the right to (i) notify any
account debtor of Debtor or any obligor on any instrument which constitutes part of the
Collateral to make payment to the Secured Party, (ii) with or without legal process, enter
any premises where the Collateral may be and take possession of and remove the Collateral
from the premises or store it on the premises, (iii) sell the Collateral at public or
private sale, in whole or in part, and have the right to bid and purchase at said sale,
(iv) to instruct the bank maintaining any Deposit Account to transfer the funds in the
Deposit Account to any account of the Secured Party, or (v) lease or otherwise dispose of
all or part of the Collateral, applying proceeds from such disposition to the obligations
then in default. If requested by Secured Party, Debtor shall promptly assemble the
Collateral and make it available to Secured Party at a place to be designated by Secured
Party, which is reasonably convenient to both parties. Secured Party may also render any
or all of the Collateral unusable at the Debtor’s premises and may dispose of such
Collateral on such premises without liability for rent or costs. Any notice that Secured
Party is required to give to Debtor under the Uniform Commercial Code of the time and place
of any public sale or the time after which any private sale or other intended disposition
of the Collateral is to be made shall be deemed to constitute reasonable notice if such
notice is given to the last known address of Debtor at least five (5) days prior to such
action. Upon the occurrence and during the continuation of an Event of Default, Debtor
hereby appoints Secured Party as Debtor’s attorney-in-fact, with full authority in Debtor’s
place and stead and in Debtor’s name or otherwise, from time to time in Secured Party’s
sole and arbitrary discretion, to take any action and to execute any instrument which
Secured Party may deem necessary or advisable to accomplish the purpose of this Agreement.
	 
	 	(d)  	Application of Proceeds. Proceeds from any sale or lease or other disposition
shall be applied: first, to all costs of repossession, storage, and disposition including
without limitation attorneys’, appraisers’, and auctioneers’ fees; second, to discharge the
obligations then in default; third, to discharge any other Indebtedness of Debtor to
Secured Party, whether as obligor, endorser, guarantor, surety or indemnitor; fourth, to
expenses incurred in paying or settling liens and claims against the Collateral; and
lastly, to Debtor, if there exists any surplus. Debtor shall remain fully liable for any
deficiency.
	 
	 	(e)  	Fees and Costs. Debtor agrees to pay all reasonable attorneys’ fees and other
costs incurred by Secured Party in connection with the enforcement, assertion, defense or
preservation of Secured Party’s rights and remedies under this Agreement, or if prohibited
by law, such lesser sum as may be permitted. Debtor further agrees that such fees and costs
shall constitute Indebtedness.
	 
	 	(f)  	Remedies Cumulative. Secured Party’s rights and remedies under this Agreement
or otherwise arising are cumulative and may be exercised singularly or concurrently.
Neither the failure nor any delay on the part of the Secured Party to exercise any right,
power or privilege under this Agreement shall operate as a waiver, nor shall any single or
partial exercise of any right, power or privilege preclude any other or further exercise of
that or any other right, power or privilege. SECURED PARTY SHALL NOT BE DEEMED TO HAVE
WAIVED ANY OF ITS RIGHTS UNDER THIS AGREEMENT OR UNDER ANY OTHER AGREEMENT, INSTRUMENT OR
PAPER SIGNED BY DEBTOR UNLESS SUCH WAIVER IS EXPRESSED IN WRITING AND SIGNED BY SECURED
PARTY. A waiver on any one occasion shall not be construed as a bar to or waiver of any
right or remedy on any future occasion.
	 
	 	(g)  	WAIVER OF JURY TRIAL. DEBTOR AND SECURED PARTY UNCONDITIONALLY WAIVE THEIR
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS
AGREEMENT, ANY OF THE OTHER DEBT DOCUMENTS, ANY OF THE INDEBTEDNESS SECURED HEREBY, ANY
DEALINGS BETWEEN DEBTOR AND SECURED PARTY RELATING TO THE SUBJECT MATTER OF THIS
TRANSACTION OR ANY RELATED TRANSACTIONS, AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED
BETWEEN DEBTOR AND SECURED PARTY. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL
ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT. THIS WAIVER IS
IRREVOCABLE. THIS WAIVER MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING. THE WAIVER ALSO
SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS
AGREEMENT, ANY OTHER DEBT DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO
THIS TRANSACTION OR ANY RELATED TRANSACTION. THIS AGREEMENT MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL BY THE COURT.

8. MISCELLANEOUS.

	 	(a)  	Assignment. This Agreement, any Note and/or any of the other Debt Documents
may be assigned, in whole or in part, by Secured Party without notice to Debtor, and Debtor
agrees not to assert against any such assignee, or assignee’s assigns, any defense,
set-off, recoupment claim or counterclaim which Debtor has or may at any time have against
Secured Party for any reason whatsoever. Debtor agrees that if Debtor receives written
notice of an assignment from

	 	 	 
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	   	Secured Party, Debtor will pay all amounts payable under any assigned Debt Documents to such
assignee or as instructed by Secured Party. Debtor also agrees to confirm in writing receipt
of the notice of assignment as may be reasonably requested by Secured Party or assignee.

	 	(b)  	Notices. All notices to be given in connection with this Agreement shall be in
writing, shall be addressed to the parties at their respective addresses set forth in this
Agreement (unless and until a different address may be specified in a written notice to the
other party), and shall be deemed given (i) on the date of receipt if delivered in hand or
by facsimile transmission, (ii) on the next business day after being sent by overnight
express mail, and (iii) on the fourth business day after being sent by regular, registered
or certified mail. As used herein, the term “business day” shall mean and include any day
other than Saturdays, Sundays, or other days on which commercial banks in New York, New
York are required or authorized to be closed.
	 
	 	(c)  	Correction of Errors. Secured Party may correct patent errors and fill in all
blanks in this Agreement or in any Note consistent with the agreement of the parties.
	 
	 	(d)  	Time is of the Essence; Consents. Time is of the essence of this Agreement.
This Agreement shall be binding, jointly and severally, upon all parties described as the
“Debtor” and their respective heirs, executors, representatives, successors and assigns,
and shall inure to the benefit of Secured Party, its successors and assigns. Whenever the
consent or approval of Debtor or Secured Party is required hereunder or under any other
Debt Document, such consent shall not be unreasonably withheld or delayed.
	 
	 	(e)  	Entire Agreement. This Agreement and its Collateral Schedules constitute the
entire agreement between the parties with respect to the subject matter of this Agreement
and supersede all prior understandings (whether written, verbal or implied) with respect to
such subject matter. THIS AGREEMENT AND ITS COLLATERAL SCHEDULES SHALL NOT BE CHANGED OR
TERMINATED ORALLY OR BY COURSE OF CONDUCT, BUT ONLY BY A WRITING SIGNED BY BOTH PARTIES.
Section headings contained in this Agreement have been included for convenience only, and
shall not affect the construction or interpretation of this Agreement.
	 
	 	(f)  	Termination of Agreement. This Agreement shall continue in full force and
effect until all of the Indebtedness has been indefeasibly paid in full to Secured Party or
its assignee. The surrender, upon payment or otherwise, of any Note or any of the other
documents evidencing any of the Indebtedness shall not affect the right of Secured Party to
retain the Collateral for such other Indebtedness as may then exist or as it may be
reasonably contemplated will exist in the future. This Agreement shall automatically be
reinstated if Secured Party is ever required to return or restore the payment of all or any
portion of the Indebtedness (all as though such payment had never been made).
	 
	 	(g)  	CHOICE OF LAW. THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE COMMONWEALTH OF VIRGINIA. DEBTOR ACKNOWLEDGES THAT THIS AGREEMENT IS
BEING SIGNED BY THE SECURED PARTY IN PARTIAL CONSIDERATION OF SECURED PARTY’S RIGHT TO
ENFORCE IN THE JURISDICTION STATED ABOVE. DEBTOR CONSENTS TO JURISDICTION IN THE
COMMONWEALTH OF VIRGINIA, VENUE IN ANY FEDERAL OR STATE COURT IN THE COMMONWEALTH OF
VIRGINIA FOR SUCH PURPOSES AND WAIVES ANY AND ALL RIGHTS TO CONTEST SAID JURISDICTION AND
VENUE AND ANY OBJECTION THAT SAID JURISDICTION IS NOT CONVENIENT. DEBTOR WAIVES ANY RIGHTS
TO COMMENCE ANY ACTION AGAINST SECURED PARTY IN ANY JURISDICTION EXCEPT VIRGINIA.
	 
	 	(h)  	Loss, Depreciation or Other Damage. The Secured Party shall not be liable
for or prejudiced by any loss, depreciation or other damage to Receivables or other
Collateral unless caused by the Secured Party’s willful or negligent act, and the Secured
Party shall have no duty to take any action to preserve or collect any Collateral.

9. DEFINITIONS.

     As used herein, the following terms, when initial capital letters are used, shall have the
respective meanings set forth below. In addition, all terms defined in the Virginia Uniform
Commercial Code (including revised Article 9 thereof) shall have the meanings given therein unless
otherwise defined herein.

Defined Terms. As used in this Agreement, the following terms shall have the following meanings,
unless the context otherwise requires:

“Account Debtor” shall mean the account debtor or any customer of the Debtor who is obligated or
indebted to the Debtor with respect to any of the Receivables and/or the prospective purchaser with
respect to any contract right, and/or any party or organization who enters into or proposes to
enter into any contract or other arrangement with the Debtor pursuant to which the Debtor is to
deliver any personal property or perform any service.

“Affiliate” of a Person is a Person that owns or controls directly or indirectly the Person, any
Person that controls or is controlled by or is under common control with the Person, and each of
that Person’s senior executive officers, directors, partners and, for any Person that is a limited
liability company, that Person’s managers and members.

“Collateral” shall mean all Equipment, instruments, documents, commercial tort claims, investment
property and letter of credit rights now owned or hereafter acquired by the Debtor; all guarantees,
or other agreements or property securing or relating to any of the items referred to above, or
acquired for the purpose of securing and enforcing any of such items; all books of account and
documents related thereto; computer tapes, programs, discs and other material, media or documents
relating to the recording, billing or analyzing of any of the above; all computers, word
processors, printers, switches, interfaces, source codes, mask works, software, web servers,
website service contracts, internet connection contract or line lease, website hosting service
contract, website license agreements, back-up copies of website content, contracts with website
advertisers, scripts, codes or Active-X controls, technology escrow agreements, website content
development agreements, all rights, of whatever form, in and to domain names, instructional
material, and connectors and all parts, accessories, additions, substitutions, or options together
with all property or equipment used in connection with any of the above or which are used to
operate or cause to operate any features, special applications, format controls, options or
software of any or all of the above- mentioned items; contractual rights, literary rights, all
amounts received as an award in or settlement of a suit in damages, proceeds of loans, interests in
joint ventures or general or limited partnerships, the sale by the Debtor of any of the foregoing
and all proceeds (cash and non- cash) of the foregoing; proceeds of property received wholly or
partly in trade or exchange for any of the above and all rents, revenues, issues, profits and
proceeds in any form, including cash, insurance proceeds, distributions on stock, negotiable
instruments and other evidences of indebtedness, chattel paper, security agreements and other
documents arising from the sale, lease, license, encumbrance, collection of, or any other temporary
or permanent disposition of, any of the above or any interest therein.

Notwithstanding the foregoing, the Collateral shall not be deemed to include any (i) Receivables,
(ii) Government Contracts or Government Accounts, (iii) Inventory, or (iv) any copyrights,
copyright applications, copyright registration and like protection in each work of authorship and
derivative work thereof, whether published or

	 	 	 
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unpublished, now owned or hereafter acquired; any patents, patent applications and like protections
including without limitation improvements, divisions, continuations, renewals, reissues, extensions
and continuations-in-part of the same, trademarks, servicemarks and applications therefor, whether
registered or not, and the goodwill of the business of Debtor connected with and symbolized by such
trademarks, any trade secret rights, including any rights to unpatented inventions, know-how,
operating manuals, license rights and agreements and confidential information, now owned or
hereafter acquired; or any claims for damage by way of any past, present and future infringement of
any of the foregoing (collectively, the “Intellectual Property”).

“Cash Equivalents” means the sum outstanding, at any one time, of (i) all cash (in United States
dollars) owned by Debtor at such time plus (ii) the fair market value of all cash equivalents and
short term investments (as those terms are defined by GAAP) owned by Debtor at such time.

“Deposit Account” means a demand, time, savings, passbook, or similar account maintained with a
bank.

“Equipment” shall mean (a) all goods and equipment of the Debtor of every type and description, now
owned and hereafter acquired and wherever located, including, without limitation, all imbedded
software, machinery, motor vehicles and other rolling stock, furniture, furnishings, tools, dies,
fittings, accessories, all substitutions therefore, leasehold improvements, fixtures, and materials
and supplies relating to any of the foregoing; (b) all present and future documents of title and
trust receipts relating to any of the foregoing; (c) all present and future rights, claims and
causes of action of Debtor in connection with purchases of (or contracts for the purchase of), or
warranties relating to, or damages to, goods held or to be held by the Debtor as equipment; (d) all
present and future warranties, manuals and other written materials (and packaging thereof or
relating thereto) relating to any of the foregoing; and (e) all present and future general
intangibles of the Debtor in any way relating to any of the foregoing. Notwithstanding the
foregoing, Equipment shall not include the tradeshow booth.

“Government Accounts” shall mean all accounts arising out of any Government Contract.

“Government Contract” shall mean any contract between the Debtor and the United States Government,
any state or local government or any agency thereof, and all amendments thereto.

“Inventory” shall mean and include (a) all goods now owned or hereafter acquired by the Debtor,
which are held for sale or lease by the Debtor or are furnished or to be furnished by the Debtor
under contracts of service, (b) all raw materials, work in process, finished goods, packaging
materials, and other materials and supplies of every kind used or consumed in connection with the
manufacture, production, packing, shipping, advertising or sale of such goods, (c) all proceeds and
products from the sale or other disposition of such goods, including all goods returned,
repossessed, or acquired by the Debtor by way of substitution or replacement, and all additions and
accessions thereto, and all documents and instruments (as those terms are defined in the Uniform
Commercial Code) covering such goods; (d) all the Debtor’s rights as an unpaid seller, including
stoppage in transit, detinue and reclamation; and (e) all of the above owned by the Debtor or in
which the Debtor now has or in which the Debtor may hereafter acquire an interest, whether in
transit or in the Debtor’s constructive or actual possession or held by the Debtor or others for
the Debtor’s account (including any of the above held on consignment), including, without
limitation, all of the above which may be located on the Debtor’s premises or upon the premises of
any carriers, forwarding agents, truckers, warehousemen, vendors, selling agents, finishers,
converters or other third parties who may have possession, temporary or otherwise, thereof.

“Lien(s)” shall mean any mortgage, pledge, deed of trust, assignment, security interest,
encumbrance, hypothecation, lien, or charge of any kind (including any conditional sale or other
title retention agreement, any financing lease having substantially the same economic effect as any
of the foregoing, and the filing of, or agreement to give, any financing statement under the
Uniform Commercial Code or comparable law of any jurisdiction).

“Payment” or “Payments” shall mean any check, draft, cash or any other remittance or credit in
payment or on account of any or all of the Receivables and the cash proceeds of any returned,
rejected or repossessed goods, the sale or lease of which gave rise to a Receivable.

“Person” is any individual, sole proprietorship, partnership, limited liability company, joint
venture, company association, trust, unincorporated organization, association, corporation,
institution, public benefit corporation, firm, joint stock company, estate, entity or government
agency.

“Receivables” shall mean in addition to the definition of account as contained in the Uniform
Commercial Code (a) all of the Debtor’s present and future accounts, contract rights, receivables,
promissory notes and other instruments, chattel paper (including tangible and electronic chattel
paper), tax refunds, general intangibles (excluding the Intellectual Property) and all rights to
receive the payment of money or other consideration under present or future contracts including,
without limitation, all of the Debtor’s rights under each Government Contract and all related
Government Accounts now owned or hereafter acquired by the Debtor; (b) all present and future cash
of the Debtor; (c) all present and future judgments, orders, awards and decrees in favor of the
Debtor and causes of action in favor of the Debtor; (d) all present and future contingent and
noncontingent rights of the Debtor to the payment of money for any reason whatsoever, whether
arising in contract, tort or otherwise including, without limitation, all rights to receive
payments under presently existing or hereafter acquired or created letters of credit; (e) all
present and future claims, rights of indemnification and other rights of the Debtor under or in
connection with any contracts or agreements to which the Debtor is or becomes a party or third
party beneficiary; (f) all goods previously or hereafter returned, repossessed or stopped in
transit, the sale, lease or other disposition of which contributed to the creation of any account,
instrument or chattel paper of the Debtor; (g) all present and future rights of the Debtor as an
unpaid seller of goods, including rights of stoppage in transit, detinue and reclamation; (h) all
rights which the Debtor may now or at any time hereafter have, by law or agreement, against any
Account Debtor or other obligor of the Debtor, and all rights, liens and security interests which
the Debtor may now or at any time hereafter have, by law or agreement, against any property of any
Account Debtor or other obligor of the Debtor; (i) all invoices and shipping documents; and (j) all
present and future interests and rights of the Debtor, including rights to the payment of money,
under or in connection with all present and future leases and subleases of real or personal
property to which the Debtor is a party, as lessor, sublessor, lessee or sublessee.

     IN WITNESS WHEREOF, Debtor and Secured Party, intending to be legally bound hereby, have
duly executed this Agreement in one or more counterparts, each of which shall be deemed to be an
original, as of the day and year first aforesaid.

	 	 	 
	SECURED PARTY:

	 	DEBTOR:
	 
	 	 
	Oxford Finance Corporation

	 	Genomic Health, Inc.
	 
	 	 
	By: /s/ Michael J. Altenburger

	 	By: /s/ Brad Cole
	 
	 	 

	 
	 	 
	Name: Michael J. Altenburger

	 	Name: Brad Cole
	 
	 	 
	Title: Chief Financial Officer

	 	Title: Chief Financial Officer

	 	 	 
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SCHEDULE A

(Collateral Locations)

	 	 	 
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SCHEDULE B

(Compliance Certificate)

FORM OF

COMPLIANCE CERTIFICATE

Oxford Finance Corporation

133 N. Fairfax Street

Alexandria, VA 22314

     Re: <Debtor>

     Gentlemen:

     Reference is made to the Master Security Agreement dated as of ___, 200___(as the
same have been and may be amended from time to time, the “Loan Agreement”, the capitalized terms
used herein as defined therein), between Oxford Finance Corporation and <Debtor> (the
“Company”).

     The undersigned authorized representative of the Company hereby certifies that in accordance
with the terms and conditions of the Loan Agreement, the Company is in complete compliance for the
financial reporting period ending ___with all required financial reporting under the Loan
Agreement, except as noted below. Attached herewith are the required documents supporting the
foregoing certification. The undersigned further certifies that the accompanying financial
statements have been prepared in accordance with Generally Accepted Accounting Principles, and are
consistent from one period to the next, except as explained below.

Indicate compliance status by circling Yes/No under “Complies”

	 	 	 	 	 
	REPORTING REQUIREMENT	 	REQUIRED	 	COMPLIES
	Interim Financial Statements

	 	Quarterly within 90 days
	 	YES/NO
	Monthly Financial Statements

	 	Monthly within 45 days	 	 
	Audited Financial Statements

	 	FYE within 150 days	 	 
	 
	 	 	 	 
	Date of most recent Board-approved
	 	 	 	 
	  budget/plan ___
	 	 	 	 
	Submitted with Borrowing Request

	 	 	 	YES/NO
	 
	 	 	 	 
	Any change in budget/plan since prior Borrowing Request

	 	YES / NO	 	 

EXPLANATIONS

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	Genomic Health, Inc.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	Name:	 	 
	

	 	 	 	 
	

	 	Title:*	 	 
	

	 	 	 	 

	*	 	Must be executed by Debtor’s Chief Financial Officer.

	 	 	 
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