Document:

exv10w5

Exhibit 10.5

CONFIDENTIAL PORTIONS OF THIS EXHIBIT HAVE BEEN OMITTED AND FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION UNDER A
CONFIDENTIAL TREATMENT REQUEST, PURSUANT TO RULE 406 OF THE
SECURITIES ACT OF 1933, AS AMENDED, AND RULE 24b-2 OF THE SECURITIES
EXCHANGE ACT OF 1934, AS AMENDED. THE REDACTED TERMS HAVE BEEN MARKED
IN THIS EXHIBIT AT THE APPROPRIATE PLACE WITH THREE ASTERISKS
[***].

THE CHANCELLOR, MASTERS AND SCHOLARS OF THE UNIVERSITY OF

CAMBRIDGE

        

          (“the University”)           

    
(1)

     and

  CAMBRIDGE UNIVERSITY

        

TECHNICAL SERVICES LIMITED  
(2)

      (“CUTS”)

     and

     PSYNOVA LIMITED

          
          
         

(“Psynova”)                     

 (3)

 

FRAMEWORK AGREEMENT

 

 

 

THIS
AGREEMENT is made the 3rd day of March 2006

BETWEEN

	(1)	 	THE CHANCELLOR, MASTERS AND SCHOLARS OF THE UNIVERSITY OF
CAMBRIDGE of The Old Schools, Trinity Lane, Cambridge, CB2 ITS (the “University”); and
	 
	(2)	 	CAMBRIDGE UNIVERSITY TECHNICAL SERVICES LIMITED a company
incorporated under the laws of England whose registered office is at
The Old Schools, Trinity Lane, Cambridge CB2 ITS (“CUTS”); and
	 
	(3)	 	PSYNOVA LIMITED a company incorporated under the laws of England (company number 05524107)
whose registered office is situated at St John’s Innovation
Centre, Cowley Road,
Cambridge, Cambridgeshire CB4 0WS (“Psynova”).

BACKGROUND

	(A)	 	Dr Sabine Bahn and her Group (as defined below) in the Institute of Biotechnology at the University of
Cambridge have certain expertise and research programmes in the field of
diagnosis and treatment of psychiatric disorders.
	 
	(B)	 	Psynova is a company that has been incorporated for the purpose of commercialising the Intellectual
Property (as defined below) developed in the Field (as defined below) by Dr
Sabine Bahn and other members of her Group.
	 
	(C)	 	CUTS, the University and Psynova now wish to enter into an agreement that grants Psynova the first
right of refusal to an exclusive option to take a licence to new
Intellectual Property to be developed by or on behalf of the University in the Field by
Dr Sabine Bahn and her Group, subject to the terms of this Agreement.

IT IS NOW HEREBY AGREED AS FOLLOWS:

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	1.1	 	In this Agreement unless the context otherwise requires the following terms will bear
the following meanings: -

	 	 	 
	“Commencement Date”

	 	the date of this Agreement as set out above;
	 
	 	 
	“Field”

	 	biomarkers and targets for the diagnosis and treatment
of psychiatric disorders and related disorders of the
central nervous system, which are developed under the
direction or under the direct control of Dr
Sabine Bahn or other members of the Group;

 

 

	 	 	 
	“Framework IP”

	 	all Intellectual Property in the Field developed
during the Term which comes into the
possession of CUTS or the University, and
which is at the free disposal of CUTS and/or the
University and not subject to or otherwise
controlled by any present agreement between the
University and a third party;
	 
	 	 
	“Group”

	 	the members from time to time of Dr Sabine Bahn’s
research group at the Institute of
Biotechnology at the University, who are not
employed by Psynova and who have stated in
writing that they are happy to enter into this
arrangement;
	 
	 	 
	“Intellectual Property”

	 	all Patents, claims in Patents,
trademarks, service marks, registered designs,
applications for any of the foregoing and the
right to apply for any of the foregoing in any
part of the world, copyright, database
rights, semiconductor topography rights,
design rights, inventions, confidential
information (including without limitation
Know-how) and all other similar or equivalent
rights, whether registrable or not, situated in
any country in the world;
	 
	 	 
	“IDF”

	 	the invention disclosure form that inventors at
the University use to notify the University of
inventions that they may have made from time to
time;
	 
	 	 
	“Know-how”

	 	all information not in the public domain of
whatsoever nature, including all data
and databases, ideas, concepts,
discoveries, inventions, formulae, techniques,
procedures for experiments and tests,
designs, methods, research plans,
sketches, records, results of research
and testing, processes, laboratory records,
reports, materials, and analyses and
interpretations of information which is in the
public domain;
	 
	 	 
	“Notified Framework IP”

	 	any Framework IP notified to Psynova under clause
2.2;
	 
	 	 
	“Option”

	 	any option granted by CUTS to Psynova as
provided in clause 4.1;

 

 

	 	 	 
	“Patents”

	 	all patents or letters patent, claims in any patent and
applications for the same in any part of the world
including, without limitation, all author certificates,
inventor certificates, utility certificates,
improvement patents and models and certificates of
addition and all foreign counterparts of them,
including any divisional applications and patents,
reissues, refilings, renewals, continuations,
continuations in part and divisions thereof,
patents of addition, extensions, substitutions, confirmations, registrations,
revalidation and additions of or to any of them, as well
as any supplementary protection certificates, and
equivalent protection rights in respect of any of them;
and
	 
	 	 
	“SMRI”

	 	Stanley Medical Research Institution of 5430 Grosvenor
Lane, Suite 200, Bethesda, MD 20814-2142, USA.
	 
	 	 
	“Term”

	 	the term of this Agreement as set out in clause 8.1.

	1.2	 	In this Agreement:

	 	(i)	 	reference to the words ‘include’ or ‘including’ are to be construed
without limitation to the generality of the preceding words;
	 
	 	(ii)	 	reference to any statute or regulation includes any modification or
re-enactment of that statute or regulation;
	 
	 	(iii)	 	headings are for convenience only and do not affect the interpretation
of any provision of this Agreement; and
	 
	 	(iv)	 	unless the contrary intention appears, words denoting persons include
any individual, partnership, company, corporation, joint venture, trust,
association, organisation or other entity, in each case whether or not having a
separate legal personality.

	2.	 	CONDUCT
	 
	2.1	 	CUTS does not undertake, warrant, guarantee or otherwise agree that there will be any
Framework IP arising during the Term. CUTS will, bearing in mind University
intellectual property policy, use all reasonable endeavours to obtain an assignment to
it of all Intellectual Property in the Field which is developed during the Term.

 

 

	2.2	 	The University will provide to CUTS and CUTS will provide to Psynova written
notification (“Notification”) of receipt of an IDF disclosing any Framework IP
(including without limitation any data comprising Framework IP), or once it has
obtained the co-operation of any third party with an interest in Framework IP in
accordance with clause 2.4, within ten (10) working days of either receipt of the said
IDF from members of the Group or the date it obtains co-operation of the third party
(as applicable).
	 
	2.3	 	Psynova shall have twenty eight (28) days from the date of Notification by CUTS to inform CUTS in
writing whether it wishes to take an Option to the Notified
Framework IP. If Psynova notifies CUTS that it wishes to take an
Option, CUTS will
grant to Psynova an Option in accordance with clause 4. If Psynova notifies CUTS
that it does not wish to take an Option or does not notify CUTS within twenty eight
(28) days of Notification (i) the Notified Framework IP shall be deemed to no longer
be Framework IP and (ii) CUTS and the University shall be free to manage and
exploit the Notified Framework IP without recourse to Psynova.
	 
	2.4	 	Where an invention is disclosed to CUTS that, but for third party rights, would be Framework IP
(“Third Party Rights IP”), CUTS shall use all reasonable endeavours to
procure the co-operation of the third parties with an interest in such Third Party Rights
IP to join with CUTS in granting Options and licences to Psynova under this
Agreement. If CUTS is successful in procuring the right to grant Options and licenses
to Psynova in connection with the Third Party Rights IP, then the Third Party Rights
IP shall be deemed to be included in Framework IP and where such Third Party
Rights IP is:

	 	i)	 	not patented it shall be subject to the provisions of clauses 2.2 and 2.3.
	 
	 	ii)	 	patented the University will provide to Psynova written notification of the
Third Party Rights IP within ten (10) working days of entering into an agreement with
the third parties who have an interest in the Third Party Rights IP (“Notification of
Third Party Agreement”). Psynova shall have twenty eight (28) days from the date of
Notification of Third Party Agreement by the University to inform CUTS in writing
whether they wish to take an Option to the Third Party Rights IP. If Psynova notifies
CUTS that they wish to take an Option, CUTS will grant to Psynova an Option subject to
clause 4. If Psynova notifies CUTS that they do not wish to take an Option or does not
notify CUTS within twenty eight (28) days of Notification (i) the Third Party Rights
IP shall be deemed to no longer be Framework IP and (ii) CUTS and the University shall
be free to manage and exploit the Third Party Rights IP without recourse to Psynova.

	3.	 	RESERVATION OF RIGHTS
	 
	3.1.	 	Subject to clause 6, but notwithstanding any other terms of
this Agreement, CUTS hereby
reserves and excepts from the Option and the licences granted to Psynova

 

 

	 	 	under this Agreement, a worldwide, perpetual and irrevocable right in and to Framework IP
for CUTS, the University and SMRI to:

	 	3.1.1	 	use Framework IP for the purpose of non-commercial scientific research and
teaching carried out by or for or under the direction of CUTS and/or the
University and/or SMRI in accordance with their charitable and/or academic
status, whether alone or in collaboration with a third party; and
	 
	 	3.1.2	 	make publications in relation to the Framework IP and any results of
research in accordance with clause 6.4, and use the same in accordance with generally
accepted academic practice (including without limitation student theses and
dissertations) provided that upon request by Psynova, CUTS and the
University shall request students to request to the Board of Graduate Studies
that their student theses or dissertations be kept on restricted access in
accordance with the relevant University regulations where necessary to avoid
prejudice to any patent application in respect of Framework IP described in
such thesis or dissertation.; and
	 
	 	3.1.3	 	transfer materials covered by Framework IP to academic or other third
parties solely for the purpose of non-commercial research; and
	 
	 	3.1.4	 	grant licences under, and make available, the Framework IP solely to the
extent necessary to exercise its rights pursuant to clauses 3.1.1, 3.1.2 and 3.1.3.

	4	 	GRANT OF RIGHTS AND CONSIDERATION
	 
	4.1	 	CUTS grants to Psynova an Option to take a world-wide licence of all Notified Framework IP
generated from time to time during the Term and notified to CUTS pursuant to clause 2.3
subject to the following conditions:

	 	4.1.1	 	Psynova shall pay [***] to CUTS upon the
filing of a provisional patent application protecting Notified Framework IP,
provided that Psynova has agreed to the filing of the patent application under
clause 5.2; and
	 
	 	4.1.2	 	Psynova shall pay [***]  to CUTS upon the
entering into the first National Phase filing of a patent application protecting
the Notified Framework IP, provided that Psynova has agreed to the patent
application entering National Phase under clause 5.2; and
	 
	 	4.1.3	 	each such Option shall be exercisable by service of notice in writing by
Psynova to CUTS during the following periods (“Option Period”):

	 	(i)	 	for Notified Framework IP for which a patent application has
been lodged, within 18 (eighteen) months of the priority date of that patent
application; and
	 
	 	(ii)	 	for all other Notified Framework IP, within 18 (eighteen) months of the

 

 

	 	 	 	date Psynova notifies CUTS under clause 2.3 that it wishes to take the Option.

	 	4.1.4	 	if Psynova exercises an Option under clause 4.1.3, CUTS will grant to
Psynova a world-wide, licence to use and exploit (including rights to sub-licence) that Notified Framework IP:

	 	(i)	 	on an exclusive basis for any Patents comprising the Notified Framework IP;
and
	 
	 	(ii)	 	on a non-exclusive basis for all other Intellectual Property comprising
the Notified Framework IP, including without limitation all Know-how,

	 	 	 	and will deliver to Psynova the Notified Framework IP for which the Option
has been exercised.
	 
	 	4.1.5	 	the parties undertake to negotiate at arms length and in good faith the other
terms of the licence referred to in clause 4.1.4, which licence will include the
terms referred to in clause 4.1.7 below, and if such negotiations are successful
execute within a period of 90 days of the date of exercise of the Option, a
licence agreement incorporating the agreed terms;
	 
	 	4.1.6	 	in the event that the terms of the licence agreement have not been determined
within such 90 day period (or any extended period agreed to in writing):

	 	(i)	 	the parties shall promptly refer the matter to the Chief
Executive Officer of Psynova and a nominated representative of CUTS
(collectively “Referees”) and the matter shall be dealt with in accordance with
clause 12.

	 	4.1.7	 	any licence granted under clause 4.1.4 shall:

	 	(i)	 	provide for royalties and milestone payments (or their equivalent) to CUTS at
a reasonable commercial rate for the particular application, taking into account
prevailing market conditions and the commercial potential of the Notified Framework IP
in question, save that the parties agree that any royalty rate will not exceed [***] of
the net sales price of any products sold by Psynova comprising the Notified Framework
IP and in relation to any licence granted for diagnostic and therapeutic applications
there shall be no more than two and three milestone payments (or their equivalents)
respectively. No minimum sales criteria shall be imposed on Psynova in any such
licence;
	 
	 	(ii)	 	provide that if Psynova considers it necessary to obtain a licence from any
third party (“Third Party Licence”) in order to avoid infringing such third party’s
patent(s) in the course of manufacture or sale of products the royalties payable to
CUTS will be reduced by a predetermined reasonable and commercial amount taking into
account prevailing market conditions and the level of payment required of Psynova
under the terms of the Third Party Licence.

 

 

	 	(iii)	 	provide for Psynova to account for any royalties due to CUTS on a
regular basis (which will be agreed at the time each Option is exercised),
to permit CUTS or its authorised representative to inspect such records as
are reasonably necessary to validate royalty calculations and include
appropriate remedies for CUTS for nonpayment. Finally, CUTS shall be
entitled to terminate any such licence if Psynova does not meet appropriate
and agreed performance criteria;
	 
	 	(iv)	 	require Psynova to diligently develop and exploit Notified
Framework IP and give CUTS an annual update on such development and
exploitation of the Notified Framework IP; and
	 
	 	(v)	 	require Psynova to prosecute and maintain any Patents for the
Notified Framework IP at its own expense, save that Psynova may notify CUTS
and the University if it no longer wishes to prosecute or maintain any Patent
in any country, in which case:

	 	(a)	 	CUTS and the University may continue to
prosecute or maintain the Patent in that country at their own expense; and
	 
	 	(b)	 	for Patents in the US, Japan or Europe (being
those member countries of the Europe Patent Convention as amended from
time to time) will no longer form part of the exclusive licence
granted to Psynova under clause 4.1.4(i). Patents in any other
countries will no longer form part of the exclusive licence
granted to Psynova under clause 4.1.4(i) but shall form part of
the non-exclusive licence granted to Psynova under clause
4.1.4(ii).

	 	4.1.8	 	If Psynova does not exercise its Option under clause 4.1.3, CUTS and the
University shall be absolutely free to manage, use, deal or exploit that Notified
Framework IP without recourse to Psynova.

	5.	 	PATENT COSTS
	 
	5.1	 	Subject to clauses 5.2 and 5.3, Psynova shall reimburse all patent costs incurred by the
University or CUTS as agreed by the parties under clause 5.2 during the currency of
the Option period referred to in clause 4, in respect of all patent filings that protect
Notified Framework IP. In the event that Psynova opts not to exercise its Option
under clause 4.1.3 neither CUTS nor the University shall reimburse Psynova for
patent costs incurred by Psynova under this clause. CUTS and the University will be
solely responsible for paying all patent costs which arise after the date the Option
expires, or from one month after the date that Psynova notifies CUTS that it does not
wish to exercise its Option (whichever occurs first).
	 
	5.2	 	During the Option period, the parties must consult with each other and agree whether
to:

 

 

	 	(i)	 	file any patent applications in connection with Notified Framework IP and the
scope of the relevant patent claims;
	 
	 	(ii)	 	proceed to National Phase for any patent applications filed in connection with
Notified Framework IP, and in which countries to proceed; and
	 
	 	(iii)	 	incur any other costs in connection with the prosecution of a patent application
relating to Notified Framework IP.

	5.3	 	If the parties are not able to reach agreement in connection with any of the matters
referred to in clause 5.2, CUTS and the University will proceed to file or prosecute the
relevant patent application in accordance with the instructions of Psynova. If Psynova
notifies CUTS and the University under clause 5.2 that it does not wish to file or
prosecute a patent application in a particular country, CUTS and the University may
proceed to file or prosecute the relevant patent application in that country at their own
expense, and Psynova will not be responsible for payment of any costs in connection
with such patent application in that country, including without limitation under
clauses 5.1, 4.1.1 or 4.1.2, provided that if Psynova proceeds to exercise its Option in
relation to that patent application, Psynova will reimburse the patent costs incurred by
CUTS and the University for those countries in which Psynova elects to take and is
granted an exclusive licence under clause 4.1.4(i).
	 
	5.4	 	CUTS and the University must use their reasonable endeavours during the Option
period to prosecute and obtain registration of any patent applications lodged in
connection with Notified Framework IP (except where Psynova has notified CUTS
and the University that it does not wish to continue to prosecute a patent application).

	6.	 	CONFIDENTIALITY

	6.1.	 	In this clause, “Confidential Information” means:

	 	6.1.1.	 	all confidential information of a party or parties which comes into the
possession or control of another party in connection with or arising
from this
Agreement; and
	 
	 	6.1.2.	 	in the case of Psynova’s Confidential Information, includes all Framework IP.

	6.2.	 	Each party undertakes that it will keep the Confidential Information of each other
party secret and confidential and will not at any time, for any reason whatsoever,
disclose or permit the same to be disclosed to any third party (save as provided in
clauses 6.3 and 6.4 below).
	 
	6.3.	 	The obligations of confidentiality contained in this clause 6 shall not extend to any
part of the Confidential Information of the disclosing party which
the recipient party
can show by documentary evidence:

 

 

	 	6.3.1.	 	has or shall (otherwise than by reason of any default by the recipient party)
become freely available to the general public; or
	 
	 	6.3.2.	 	was legally in its possession or control prior to the date upon which it was
received from the other party free of any obligation of confidentiality; or
	 
	 	6.3.3.	 	came into its possession or control legally from a third party free of any
obligation of confidentiality and otherwise than by reason of any breach of any
obligation of confidentiality by such third party subsequent to the date of this
Agreement; or
	 
	 	6.3.4.	 	the parties have agreed should be disclosed in order to publicise, promote or
seek further investment for the Intellectual Property and business of
Psynova;
or
	 
	 	6.3.5.	 	the recipient party is required to disclose by any law or regulation provided
that it informs the disclosing party of the extent and nature of any disclosure so
required and limits it to what is absolutely necessary.

	6.4.	 	In the event that CUTS or the University wishes to publish or otherwise disclose any Framework IP, they will first
send to Psynova a completed manuscript of the proposed publication in the form to be submitted or a full description of
any unpublished research results forming part of the Framework IP to be presented or otherwise disclosed. On receipt of
any proposed publication or description, Psynova will review the same
within 30 days. If within the 30 day period,
Psynova either approves the publication or disclosure in writing, or provides no response, then the publication or
disclosure may proceed. If Psynova gives written notice within the 30 day period requesting delay of the proposed
publication or disclosure, CUTS and the University must:

	 	6.4.1.	 	work with Psynova to ensure that a patent application is
promptly filed to
protect any Framework IP disclosed in the proposed publication; and
	 
	 	6.4.2.	 	ensure that the manuscript is not submitted for publication and
any unpublished research results are not presented or otherwise disclosed until a
patent application is filed to protect any Framework IP disclosed in the
proposed publication.

	6.5	 	The obligations of all of the parties under this clause 6 shall remain in force for the
term of this Agreement and continue thereafter for five years.

	7.	 	WARRANTIES

	 	 	7.1.	CUTS and the University each warrant that:

 

 

	 	7.1.1.	 	they are free to enter into this Agreement which will upon its due execution
constitute legal and binding obligations upon them enforceable against each of CUTS
and the University in accordance with its terms; and
	 
	 	7.1.2.	 	they have not and will not during the Term of this Agreement enter into any
agreement, arrangement or understanding with any other person which may prevent them
from performing their obligations under this Agreement.

	8.	 	DURATION AND TERMINATION
	 
	8.1.	 	This Agreement shall begin on the Commencement Date and continue thereafter for three years
unless extended by mutual consent of the parties in accordance with the provisions of clause
8.2.
	 
	8.2.	 	Not less than three (3) months prior to the expiry of
this Agreement, Psynova may request of
CUTS and the University in writing that the Term be extended for a further year from the
expiry date in effect at the time of such request. In the event of such a request, then CUTS
and the University may agree to extend the Term in accordance with this clause 8.2. The Term
may be extended to a maximum of 5 (five) years from the
Commencement Date.
	 
	8.3.	 	Either Psynova or CUTS (as the case may be) (“the Non Defaulting Party”) may terminate this
Agreement forthwith by written notice if:

	 	8.3.1.	 	the other party (“the Defaulting Party”) commits a material breach of its obligations
under this Agreement which (if capable of remedy) is not remedied within 28 days of
written notice requiring it to be remedied being received by the
Defaulting Party; or
	 
	 	8.3.2.	 	the Defaulting Party becomes insolvent within the meaning of Section 123 of the
Insolvency Act 1986 (or any equivalent legislation) or goes into either compulsory or
voluntary liquidation (except for the purposes of reconstruction or amalgamation) or a
receiver, administrative receiver or administrator is appointed in respect of the whole
or any part of its assets or if it makes an assignment for the benefit of or
composition with its creditors generally.

	8.4.	 	Where Psynova no longer intends to continue and/or expand its business in the Field it shall
inform CUTS promptly of such intention by notice in writing, whereupon CUTS may terminate this
Agreement by giving 30 days written notice.
	 
	8.5.	 	If this Agreement expires or terminates for whatever reason:

	 	8.5.1.	 	any licences entered into under clause 4.1.4 will continue in accordance with their
terms; and
	 
	 	8.5.2.	 	clauses 6, 8.5, 8.6 and 15 continue in full force and effect.

 

 

	8.6.	 	Termination or expiry of this Agreement will not affect any accrued rights or
remedies any party may have.
	 
	9.	 	ENTIRE AGREEMENT
	 
	 	 	This Agreement shall be deemed to have effect from the Commencement Date and shall
supersede any other agreement between the parties, written or oral, with respect to the
subject matter of this Agreement.
	 
	10.	 	ASSIGNMENT
	 
	 	 	A party may not assign, transfer, charge or deal in any other manner with its rights or
obligations under this Agreement nor purport to do so without the prior written consent
of the other party.
	 
	11.	 	NATURE OF THE AGREEMENT
	 
	11.1.	 	Each party acknowledges that in entering into this Agreement it does not do so on the basis
of and does not rely on any representation, warranty or other provision (except as expressly
provided herein) and all conditions, warranties and other terms implied by statute or common
law are hereby excluded to the fullest extent permitted by law.
	 
	11.2.	 	Any agreement to amend, vary or modify the terms of this Agreement in any manner shall be
valid only if made in writing and signed by duly authorised representatives of each of the
parties.
	 
	12.	 	DISPUTE RESOLUTION
	 
	12.1.	 	If any dispute arises out of or in connection with this Agreement the parties will attempt
in good faith to settle it by negotiation.
	 
	12.2.	 	If the parties are unable to settle any dispute by negotiation under clause 12.1 within 14
days, the parties will promptly refer the matter to the Chief Executive Officer of Psynova and
a nominated representative of each of CUTS and the University.
	 
	12.3.	 	If the parties have not been able to resolve the dispute under clause 12.2 after a further
14 days, the parties may agree to refer the dispute to mediation conducted in accordance with
the Centre for Effective Dispute Resolution (CEDR) Model Mediation Procedure.
	 
	12.4.	 	The cost of any mediator and premises used to conduct a mediation under this clause 12 will
be borne equally between the parties.
	 
	13.	 	THIRD PARTIES
	 
	 	 	No term of this Agreement shall be enforceable under the Contracts (Rights of Third Parties)
Act 1999 by any third party, except for terms to be for the benefit of SMRI. This

 

 

does not affect any right or remedy of a third party which exists or is available apart from
under that Act. Notwithstanding the foregoing this Agreement may be amended in any respect,
or suspended, cancelled or terminated by agreement in writing between the parties, in each
case without the consent of, or notification to, SMRI.

	14.	 	ANNOUNCEMENTS
	 
	 	 	A party may not make press or other announcements or releases relating to this Agreement
without the approval of the other parties to the form and manner of the announcement or
release unless and to the extent that the announcement or release is (i) required to be
made by a party by law, rule, regulation or by a stock exchange or (ii) subject to clause
6, is made in the annual report of CUTS, the University or one of the University’s
departments.
	 
	15.	 	LAW AND JURISDICTION
	 
	15.1.	 	Any controversy or claim of whatsoever nature arising out of or relating in any manner
whatsoever to this Agreement or any breach of any terms of this Agreement shall be governed by
and construed in all respects in accordance with the laws of England.
	 
	15.2.	 	Each party hereby irrevocably acknowledges and agrees that the Courts of England shall have
exclusive jurisdiction to resolve any controversy or claim of whatsoever nature arising out of
or in connection with this Agreement, any terms of this Agreement or any breach of this
Agreement, except that a party may seek an injunction in any court of competent jurisdiction.
	 
	16.	 	WAIVER
	 
	16.1.	 	Save as expressly provided in this Agreement, neither party will be deemed to have waived
any of its rights or remedies howsoever arising, unless the waiver is made in writing and
signed by a duly authorised representative of that party.
	 
	16.2.	 	No delay or failure of any party in exercising or enforcing any of its rights or remedies
whatsoever will operate as a waiver of those rights or remedies or so as to preclude or impair
the exercise or enforcement of those rights or remedies nor will any partial exercise or
enforcement of any right or remedy by any party preclude or impair any other exercise or
enforcement of that right or remedy by that party.
	 
	17.	 	SEVERENCE
	 
	 	 	If any part of this Agreement is or becomes or is declared illegal, invalid or unenforceable
in any jurisdiction for any reason (including both by reason of the provisions of any
legislation and also by reason of any decision of any court which either has jurisdiction
over this Agreement or has jurisdiction over any of the parties):

	 	(a)	 	in the case of illegality, invalidity or unenforceability of the whole of this

 

 

Agreement, this Agreement will terminate in relation to the jurisdiction in
question; or

	 	(b)	 	in the case of the illegality, invalidity or unenforceability of part of this
Agreement, that part will be severed from this Agreement in the jurisdiction in
question, and that illegality, invalidity or unenforceability will not in any way
prejudice or affect the remaining parts of this Agreement which will continue in
full force and effect:

	18.	 	NOTICES

Any notice to be given under this Agreement shall be in writing and delivered by hand,
pre-paid registered post or facsimile to the other party at the address or fax number set
out below or to such other address or fax number as a party may specify in writing to the
other parties.

	 	 	 
	Notices to CUTS

	 	c/o Cambridge Enterprise,
	 

	 	University of Cambridge,
	 

	 	10 Trumpington Street,
	 

	 	Cambridge, CB2 1QA
	 

	 	Fax number: +44(0) 1223 764888
	 
	 	 
	Notices to the University

	 	c/o University of Cambridge
	 

	 	10 Trumpington Street,
	 

	 	Cambridge, CB2 1QA
	 

	 	Fax number: +44(0) 1223 764888
	 
	 	 
	Notices to the Licensee

	 	Psynova Limited
	 

	 	St John’s Innovation Centre,
	 

	 	Cowley Road,
	 

	 	Cambridge
	 

	 	CB4 0WS
	 

	 	Fax number: 01223 703146

Notices are deemed to have been given:

	 	(a)	 	if delivered by hand, at the time of the delivery unless delivered after 5.00pm
or on a non-business day in the place of receipt, in which case the notice is deemed to
have been given at 9.00am the next business day;
	 
	 	(b)	 	if sent by registered post from within the United Kingdom, three business days
after posting (or seven business days if posted from outside the United Kingdom); and
	 
	 	(c)	 	if sent by facsimile, at the time the facsimile is received as shown in the
transmission report as the time that the whole facsimile was sent unless received after
5.00pm or on a non-business day in the place of receipt, in which case the notice is
deemed to have been given at 9.00am the next business day.

 

 

	19	 	AGENCY

Nothing contained or implied in this Agreement constitutes a party the partner, agent, or
legal representative of another party for any purpose or creates any partnership, agency or
trust, and no party has any authority to bind the other party in any way.

	20	 	COUNTERPARTS

This Agreement may be executed in any number of counterparts and by the different parties
by separate counterparts, each of which when so executed shall be an original, and all of
which will constitute one and the same instrument. Complete sets of counterparts shall be
lodged with each party.

	21.	 	FURTHER ASSURANCE

Each party must do or cause to be done all things necessary to give effect to this
Agreement, and must refrain from doing anything that would hinder performance of this
Agreement or prevent a party from obtaining the full benefit of this Agreement.

IN WITNESS whereof this Agreement has been entered into the day and year first above written.

	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 
	duly authorised for and on behalf of

	 	 	)	 	 	/s/ Edna Murphy
	THE CHANCELLOR MASTERS AND SCHOLARS

	 	 	)	 	 	 
	OF THE UNIVERSITY OF CAMBRIDGE

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 
	duly authorised for and on behalf of

	 	 	)	 	 	/s/ Richard Jennings
	CAMBRIDGE UNIVERSITY TECHNICAL

	 	 	)	 	 	 
	SERVICES LIMITED

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	 
	duly authorised for and on behalf of

	 	 	)	 	 	 
	PSYNOVA LIMITED

	 	 	)	 	 	 
	 
	 	 	 	 	 	 
	SIGNED by SABINE BAHN

	 	 	)	 	 	/s/ Sabine Bahn

I
acknowledge that I have read and understood the terms of this Agreement

 

 

EXHIBIT TO FRAMEWORK AGREEMENT

FORM
OF EXISTING ROYALTY-BEARING EXCLUSIVE PATENT
 AND NON-EXCLUSIVE
KNOW-HOW LICENCE AGREEMENTS

CAMBRIDGE ENTERPRISE LIMITED

(“CE”)

and

PSYNOVA
NEUROTECH LIMITED

(“Licensee”)

EXCLUSIVE PATENT AND

NON-EXCLUSIVE KNOW-HOW

LICENCE AGREEMENT

Case No:

Copyright © 2003-8 University of Cambridge

Page 1 of 30

 

	1	 	Definitions and Interpretations

	 	1.1	 	Definitions

	 	1.2	 	Interpretation

	 	1.3	 	Schedules

	2	 	Grant of rights

	 	2.1	 	Licences

	 	2.2	 	Formal licences

	 	2.3	 	Sub-licensing

	 	2.4	 	Reservation of rights

	 	2.5	 	Business Difficulties

	3	 	Non Disclosure

	 	3.1	 	Provision of Know-how

	 	3.2	 	Licensee to treat Know-how as confidential

	 	3.3	 	Confidentiality

	 	3.4	 	Use of Confidential Information

	 	3.5	 	Disclosing Information

	 	3.6	 	Exceptions to confidentiality obligations

	 	3.7	 	Return of information and survival of confidentiality obligations

	4	 	Payments

	 	4.1	 	Non-monetary and inadequate consideration

	 	4.2	 	Royalties on all Net Sales of a Licensed Product by Psynova Neurotech and any
Sub-Licensees

	 	4.3	 	Milestone payments

	 	4.4	 	Other Income (other than Royalties)

	 	4.5	 	Payment terms and price index

	 	4.6	 	Reimbursement of patent costs

	 	4.7	 	Financial reports

	 	4.8	 	Records

	5	 	Commercialisation obligations and reports

	 	5.1	 	Commercialisation

	 	5.2	 	Commercialisation Report

	 	5.3	 	Independent Expert — Reference

	 	5.4	 	Independent Expert — appointment and decision

	 	5.5	 	CE’s right to terminate

	 	5.6	 	Sub-licensing of undeveloped applications

	 
	6	 	Intellectual property               

	 	6.1	 	Patent protection

	 	6.2	 	Infringement of the Patents

	 	6.3	 	Infringement of third party rights

	7	 	Warranties and liability

	 	7.1	 	Status of Licensed Technology and responsibility for development of Licensed
Products

	 	7.2	 	No representations or warranties

	 	7.3	 	Liability and indemnity

	8	 	Duration and termination

	 	8.1	 	Commencement and termination by expiry

	 	8.2	 	Early termination by the Licensee

	 	8.3	 	Early termination by CE

	 	8.4	 	Early termination by either party

	 	8.5	 	Consequences of termination

	9	 	Dispute resolution

	10	 	General

	 	10.1	 	Force majeure.

	 	10.2	 	Assignment.

	 	10.3	 	Waiver

	 	10.4	 	Invalid clauses

	 	10.5	 	No agency

	 	10.6	 	Notices

	 	10.7	 	Law and jurisdiction

	 	10.8	 	Further action

	 	10.9	 	Announcements

	 	10.10	 	Entire agreement

	 	10.11	 	Third party rights

	 	10.12	 	Export Control Regulations

	 	10.13	 	Non-use of names and marking of Licensed Products

	 	10.14	 	Insurance

	 	10.15	 	Legal Compliance

Schedule 1

Schedule 2

Schedule 3

Copyright © 2003-8 University of Cambridge

Page 2 of 30

 

THIS AGREEMENT dated ________________________ is between:

	(1)	 	CAMBRIDGE ENTERPRISE LIMITED (“CE”), a company incorporated
	 
	 	 	in England and Wales (registered number 1069886) whose registered address is at The Old
Schools, Trinity Lane, Cambridge CB2 1TN, UK;
	 
	 	 	and
	 
	(2)	 	PSYNOVA NEUROTECH LIMITED (the “Licensee” or “Psynova”) a company incorporated in England and
Wales (registered number 05524107) whose registered office is at St John’s Innovation Centre,
Cowley Road, Cambridge, CB4 0WS.

RECITALS:

	A.	 	CE is a company wholly owned by The Chancellor, Masters and Scholars of the University of
Cambridge.
	 
	B.	 	The University inventors specified in Schedule 1 have developed technology relating to
biomarkers and targets for the diagnosis and treatment of psychiatric disorders and related
disorders of the central nervous system, including the Patents and the Know-how and they and
the University have assigned to CE all their intellectual property rights in the Patents and
the Inventors have granted a licence to CE in respect of the Know-how.
	 
	C.	 	By an option agreement dated                                          CE granted Psynova an option to take an exclusive
licence under the Patent.
	 
	D.	 	The Licensee wishes to acquire rights under the Patents and to use the Know-how for the
development and commercialisation of Licensed Products in the Field and in the Territory, in
accordance with the provisions of this Agreement.

IT IS AGREED as follows:

	1	 	Definitions and Interpretations
	 
	1.1	 	Definitions
	 
	 	 	In this Agreement, the following words shall have the following meanings:

	 	 	 	 	 
	Anniversary	 	An anniversary of the Commencement Date.
	 
	 	 	 	 
	Commencement Date
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Confidential Information	 	Any information marked confidential obtained directly or indirectly by one Party from the other Party.
	 
	 	 	 	 
	Continuation in Part	 	Any continuation-in-part patent application provided
	 
	 	 	 	 

	 	(a)	 	it was filed within two years of the original application;

Copyright © 2003-8 University of Cambridge

Page 3 of 30

 

	 	(b)	 	it only names one or more
of the Inventors;
	 
	 	(c)	 	the technology covered
was disclosed, claimed in and dominated by the original
application; and
	 
	 	(d)	 	is not burdened by, for
example, sponsored research or any other collaboration
between the University and a third party.

	 	 	 	 	 
	Field

	 	 	.	 
	 

	 	 	 	 
	 
	 	 	 	 
	Know-how

	 	Technical information of the Principal Investigator in
the Field which exists at the Commencement Date and
which relates directly to the inventions claimed in
the Patents.
	 
	 	 	 	 
	Inventor(s)

	 	The inventors named in Schedule 1.
	 
	 	 	 	 
	Licensed Product

	 	Any product, process or use which the Licensee or
Sub-Licensees sell, supply or make available
(including to a Sub-Licensee) and which incorporates
or their development makes use of any of the Licensed
Technology.
	 
	 	 	 	 
	Licensed Technology

	 	The Patents and the
Know-how.
	 
	 	 	 	 
	Net Sales Value

	 	Either;

	 	(a)	 	the price of Licensed
Products invoiced in arm’s length transactions to
independent third parties exclusively for money or;
	 
	 	(b)	 	the price that would have
been invoiced if it had been such a transaction
	 
	 	 	 	and in both cases without deduction of any commission
paid to a third party but less the following permitted
deductions:

	 	(ii)	 	arm’s
length trade discounts or credits given; and
	 
	 	(iii)	 	provided the amounts are separately charged on the
relevant invoice, any costs of packaging,
insurance, carriage and freight, any value added
tax or other sales tax, and any import duties or
similar applicable government levies.

	 	 	 
	Parties

	 	CE and the Licensee, and “Party” shall mean either of them.

Copyright © 2003-8 University of Cambridge

Page 4 of 30

 

	 	 	 
	Patents

	 	Any and all of the patents and patent applications referred to in Schedule 1 together with any patents
granted pursuant to the applications and any continuations, Continuations in Part, extensions, reissues,
divisions and supplementary protection certificates that derive priority from the foregoing.
	 
	 	 
	Payment Period

	 	The payment periods specified in Schedule 3.
	 
	 	 
	Planned Sales

	 	Projected annual sales for Licensed Products.
	 
	 	 
	Principal Investigator

	 	Dr Sabine Bahn
	 
	 	 
	RBM

	 	Rules Based Medicine, Inc., whose registered office is at 300 Duval Road, Austin, Texas 78759, USA.
	 
	 	 
	Royalty

	 	The royalty specified in clause 4.2
	 
	 	 
	Other Income

	 	Any payment (other than Royalties)
and, without prejudice to clause 4.1, the value of any non-monetary
receipt or benefit which the Licensee obtains in connection with the rights granted by clause 2.1 less
any value added tax but including

	 	(a)	 	consideration for any
option or any sub or cross-licence;
	 
	 	(b)	 	research or development
funding exceeding a reasonable level of remuneration as
defined in clause 4.4(d);
	 
	 	(c)	 	up front, milestone,
success, bonus, maintenance, minimum royalty or periodic
(including annual) payments;
	 
	 	(d)	 	shares, options or other
securities obtained from third parties;
	 
	 	(e)	 	the amount by which any
premium paid for shares, options or other securities exceeds
fair market value, to be determined on the assumption that
CE has not granted or agreed to grant any rights to the
Licensee in respect of the Licensed Technology;
	 
	 	(f)	 	any loan guarantee or
other financial benefit made or given other than on normal
market terms

Copyright © 2003-8 University of Cambridge

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	Sub-Licensee

	 	Any third party granted a sub-licence of the rights in
clause 2.1 by the Licensee whether directly by the Licensee or
through multiple levels of sub-licensing.
	 
	 	 
	Term

	 	The period specified in clause 8.1.
	 
	 	 
	Territory

	 	World-wide.
	 
	 	 
	University

	 	The Chancellor, Masters and Scholars of the University of Cambridge.

	1.2	 	Interpretation
	 
	 	 	In this Agreement (except where the context otherwise requires):

	 	(a)	 	any reference to a clause or schedule is to the relevant clause or schedule
of or to this Agreement and any reference to a sub-clause or paragraph is to the
relevant sub-clause or paragraph of the clause or schedule in which it appears;
	 
	 	(b)	 	the clause headings are included for convenience only and shall not affect
the interpretation of this Agreement;
	 
	 	(c)	 	any reference to “person” or “persons” includes natural persons, firms,
partnerships, companies, corporations, associations, organisations, governments,
states, foundations and trusts (in each case whether or not having separate legal
personality);
	 
	 	(d)	 	the singular includes the plural and vice versa; and
	 
	 	(e)	 	words preceding “include”, “includes”, “including” and “included” shall be
construed without limitation by the words which follow those words.

	1.3	 	Schedules
	 
	 	 	The schedules form part of this Agreement. If a provision of a schedule is inconsistent
with a provision of this Agreement, the latter prevails.
	 
	2	 	Grant of rights
	 
	2.1	 	Licences
	 
	 	 	CE hereby grants to the Licensee subject to the provisions of this Agreement:

	 	(a)	 	an exclusive licence under the Patents, with the right to sub-license,
subject to clause 2.3 below, to develop, manufacture, have manufactured, sell, supply,
use, promote, market and make available Licensed Products only in the Field in the
Territory; and
	 
	 	(b)	 	a non-exclusive licence to use the Know-how, with the right to
sub-license,
subject to clause 2.3 below, to develop, manufacture, have manufactured, sell, supply,
use, promote, market and make available Licensed Products only in the Field in the
Territory.

Copyright © 2003-8 University of Cambridge

Page 6 of 30

 

	2.2	 	Formal licences
	 
	 	 	The Parties shall execute such formal licences as may be necessary or appropriate for
registration with Patent Offices and other relevant authorities in particular territories.
In the event of any conflict in meaning between any such licence and the provisions of this
Agreement, the provisions of this Agreement shall prevail. Prior to the execution of the
formal licence(s) (if any) referred to in this clause, the Parties shall so far as possible
have the same rights and obligations towards one another as if such licence(s) had been
granted. The Parties shall use reasonable endeavours to ensure that, to the extent
permitted by relevant authorities, this Agreement shall not form part of any public record.
	 
	2.3	 	Sub-licensing
	 
	  2.3.1	 	The Licensee shall be entitled to grant a sub-licence of its rights under this Agreement
to RBM provided that:

	 	(a)	 	the sub-licence shall include terms which are equivalent to the obligations
and limitations (including limitations of liability) which apply to the Licensee under
this Agreement and that RBM shall be subject to clause 4 of this agreement;
	 
	 	(b)	 	the sub-licence shall terminate automatically on the termination of this
Agreement for any reason save that CE shall in good faith negotiate with RBM the terms
of a new sub-licence upon substantially equivalent terms;
	 
	 	(c)	 	within 30 days of the grant of the sub-licence the Licensee shall provide to
CE a true copy of it;
	 
	 	(d)	 	the Licensee shall be responsible for any breach by RBM, as if the breach had
been that of Licensee under this Agreement, and the Licensee shall indemnify CE
against any loss, damages, costs, claims or expenses which are awarded against or
suffered by CE as a result of any such breach by RBM;
	 
	 	(e)	 	for the avoidance of doubt, all Sub-Licensees of RBM shall be treated as
sub-licensees of the Licensee for the purposes of this Agreement, whether the rights
are granted directly by the Licensee or by any Sub-Licensee; and
	 
	 	(f)	 	in respect of clause 4 of this agreement all actions of RBM shall be
considered those of the Licensee and the Licensee shall be responsible for making
payments to CE.

	  2.3.2	 	The Licensee shall be entitled to grant sub-licences of its rights under this Agreement
and to permit multiple levels of Sub-licensing by Sub-Licensees, provided that:

	 	(a)	 	each sub-licence shall include terms which are equivalent to the obligations
and limitations (including limitations of liability) which
apply to the Licensee under this Agreement;

Copyright © 2003-8 University of Cambridge

Page 7 of 30

 

	 
	 	(b)	 	each sub-licence shall terminate automatically on the termination of this
Agreement for any reason save that CE shall in good faith negotiate with the
sub-licensee the terms of a new sub-licence upon substantially equivalent terms and
substantially equivalent financial terms to those between Psynova and the
Sub-Licensee;
	 
	 	(c)	 	within 30 days of the grant of any sub-licence the Licensee shall provide to
CE a true copy of it;
	 
	 	(d)	 	the Licensee shall be responsible for any breach by any Sub-Licensee, as if
the breach had been that of Licensee under this Agreement, and the Licensee shall
indemnify CE against any loss, damages, costs, claims or expenses which are awarded
against or suffered by CE as a result of any such breach by a Sub-Licensee; and
	 
	 	(e)	 	for the avoidance of doubt, all Sub-Licensees shall be treated as
sub-licensees of the Licensee for the purposes of this Agreement, whether the rights
are granted directly by the Licensee or by any Sub-Licensee.

	2.4	 	Reservation of rights

	 	(a)	 	CE reserves for itself, (and also grants to the University and any wholly
owned subsidiary of the University and any sponsor of the research which created the
subject matter of the Patents) an irrevocable, world-wide,
royalty-free, non-exclusive
right to use and to license other academic institutions to use the Patents in the
Field for publication, teaching, clinical patient care, provision of biological
materials for internal academic research purposes and academic research, including as
background intellectual property for collaborative research pursuant to EC or other
government research funding and for applications for funding for such research. The
Licensee agrees that, notwithstanding any other provision of this Agreement, it has no
right to enforce the Patents against any academic institution or restrict publication
of any research by an academic institution relating to or using the Licensed
Technology for not for profit purposes.
	 
	 	(b)	 	Except for the rights expressly set out in this Agreement, no licence is
granted in respect of the Licensed Technology or any other technology or patents of CE
regardless of whether such technology or patents are dominant or subordinate to the
Licensed Technology and all rights, title and interest in and to the Licensed
Technology throughout the world now or hereafter are and shall remain the exclusive
property of CE.

	2.5	 	Business Difficulties
	 
	 	 	Without prejudice to any other right or remedy which CE may have, if any of the events
contemplated in clause 8.4(b) apply to the Licensee, the exclusivity
of licence granted in clause 2.1(a) shall cease and the licence shall
become non-exclusive.

Copyright © 2003-8 University of Cambridge

Page 8 of 30

 

	3	 	Non Disclosure
	 
	3.1	 	Provision of Know-how
	 
	 	 	Upon the Licensee’s reasonable request, CE shall arrange for the Principal Investigator to
supply the Licensee with all Know-how in his possession that CE is at liberty to disclose
and that has not previously been disclosed and which is reasonably necessary or desirable
to enable the Licensee to undertake the further development of the Patents. The method of
such supply shall be agreed between the Principal Investigator and the Licensee but shall
not require the Principal Investigator to undertake any man-days of work, unless otherwise
agreed in writing between the Parties. If it is agreed that the Principal Investigator
shall travel to the Licensee’s premises in connection with such supply, the Licensee shall
reimburse all travel (at business class rates), accommodation and subsistence costs
incurred.
	 
	3.2	 	Licensee to treat Know-how as confidential
	 
	 	 	The Licensee receives the Know-how as Confidential Information. The Licensee shall not use
the Know-how for any purpose except as expressly licensed hereby and in accordance with the
provisions of this Agreement. The Licensee shall observe the provisions of clauses 3.3 to
3.6 and 8.5(b)(iv) in relation to the Know-how.
	 
	3.3	 	Confidentiality
	 
	 	 	No Confidential Information disclosed by one party (“Disclosing Party”) to the other party
(“Recipient Party”) under this Agreement may be disclosed by the Recipient Party to any
person except:

	 	(a)	 	employees, officers, directors, auditors, or subcontractors of the Recipient
Party or the University requiring the Confidential Information for the purposes of
this Agreement;
	 
	 	(b)	 	with the prior written consent of the Disclosing Party which consent may be
given or withheld in its absolute discretion;
	 
	 	(c)	 	to actual or potential customers or sub-licensees for Licensed Products in so
far as such disclosure is necessary to promote the sale or use of Licensed Products;
	 
	 	(d)	 	if the Recipient Party is required to do so by law (including the Freedom of
Information Act 2000) or stock exchange; or
	 
	 	(e)	 	if the Recipient Party is required to do so in connection with legal
proceedings relating to this Agreement.

Copyright © 2003-8 University of Cambridge

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	3.4	 	Use of Confidential Information
	 
	 	 	No Confidential Information of the Disclosing Party may be used by the Recipient Party for
any purpose other than the performance of the Recipient Party’s obligations or the exercise
of the Recipient Party’s rights under this Agreement.
	 
	3.5	 	Disclosing Information
	 
	 	 	Any party disclosing information under clause 3.3(a) (b) or (c) must use all reasonable
endeavours to ensure that persons receiving Confidential Information from it

	 	(a)	 	do not disclose or use the information except in the circumstances permitted
in clauses 3.3 and 3.4 and
	 
	 	(b)	 	sign a written confidentiality undertaking in terms at least as restrictive
as that binding the Recipient Party.

	3.6	 	Exceptions to confidentiality obligations

	 	(a)	 	Clauses 3.3, 3.4 and 3.5 do not apply to Confidential Information which:

	 	(i)	 	is in or becomes part of the public domain other than
through breach of this Agreement or an obligation of confidence owed to the
Disclosing Party;
	 
	 	(ii)	 	the Recipient Party can prove by contemporaneous
written documentation was already known to it at the time of disclosure by
the Disclosing Party (unless that knowledge arose from disclosure of
information in breach of an obligation of confidence).

	 	(b)	 	For the avoidance of doubt the Licensee acknowledges that

	 	(i)	 	CE is required to inform those inventors and others entitled to a share in CE
receipts under this Agreement (including persons other than CE employees) of the basis
of CE’s calculation of the share due; and
	 
	 	(ii)	 	for the purpose of academic publication any academic who contributed to the
creation or development of the Licensed Technology may have to declare to the publisher
and in publications that the Licensee is licensed in respect of the Licensed Technology
and that he or she has received or may receive income from exploitation of the Licensed
Technology.
	 
	 	 	 	If a disclosure described in this clause 3.6(b)(i) or (ii) includes Confidential
Information, CE and the academic disclosing will be deemed to have permission to
make such disclosure.

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	3.7	 	Return of information and survival of confidentiality obligations

	 	(a)	 	The Recipient Party must return to the Disclosing Party all documents or
other materials containing or referring to Confidential Information
(other than the Know-how) which are in its possession, power or control or in the
possession, power or control of persons who have received Confidential Information
from it under clause 3.3(a), (b) or (c) at any time if requested to do so by the
Disclosing Party.
	 
	 	(b)	 	The provisions of clauses 3.2 to 3.7 inclusive will survive the expiry or
earlier termination (for whatever reason) of this Agreement for a period of five years
for Know How and three years for other Confidential Information beginning on the date
of last disclosure of the information.

	4	 	Payments
	 
	4.1	 	Non-monetary and inadequate consideration
	 
	 	 	The Licensee shall not accept and shall ensure that Sub Licensees do not accept, without
the prior written consent of CE, any indirect or non-monetary consideration for any
Licensed Product. The Licensee acknowledges that CE has granted the rights in clause 2.1
in consideration of the Licensee paying CE a share of the income the Licensee receives from
any exploitation of those rights. The Licensee shall act in good faith towards CE in its
commercial exploitation of the Licensed Technology. For the avoidance of doubt it is
agreed that the Licensee has no licence to provide Licensed Products free or for inadequate
consideration, including in order to avoid the obligation to pay CE a return under this
Agreement or to derive any monetary or non-monetary receipt or benefit through other
activity for itself, any party associated with it, any business partner, or (as defined in
the Companies Act 2006) any subsidiary or holding company of the Licensee or subsidiary of
any such holding company.
	 
	4.2	 	Royalties on all Net Sales of a Licensed Product by Psynova Neurotech and any Sub-Licensees
	 
	 	 	Psynova Neurotech and any Sub-Licensee shall pay CE a royalty for each Licensed Product or
part of one at the following rates:

	 	(a)	 	on Psynova Neurotech sales: £___% of the Net Sales Value invoiced by Psynova
Neurotech; and
	 
	 	(b)	 	on Sub-Licensee sales: £___% of the Net Sales Value invoiced by a
Sub-Licensee.

If a Licensed Product would, but for the existence of suitable licences, infringe n patents and/or
know-how licences from CE to Psynova then the total royalty due to CE
(“TCER”) = ___+ (n-)/___

If a Licensed Product would, but for the existence of suitable licences, infringe y patents and/or
know-how licences from a third party to Psynova then the royalty due to CE = TCER x n/(n+y)

The minimum TCER shall be ___%.

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	4.3	 	Milestone payments
	 
	 	 	The Licensee shall pay CE the milestone payment(s) set out in the table below in respect of
each Licensed Product when the relevant milestone is achieved.

	 	 	 
	Milestone	 	Payment
	 
	First national phase filing of the Patent
	 	 
	Incorporation into a clinical product
	 	 
	Licensed Produce reaching regulatory approval
	 	 

	 	 	The milestone payment of ___due to CE upon entering into the first National Phase
filing of the patent application that is part of the option terms will remain.
	 
	4.4	 	Other Income (other than Royalties)

	 	(a)	 	The Licensee shall pay to CE:

	 	(i)	 	___% of all upfront fees received as Other Income
	 
	 	(ii)	 	___% of milestone payments received as Other Income
	 
	 	(iii)	 	___% of any Other Income not included in
sub-clauses 4.4(a)(i) or 4.4(a)(ii);
	 
	 	(iv)	 	a milestone of ___for each sub-licence contract
with the exception of any sub-licence granted to RBM

	 	(b)	 	The Licensee shall not arrange to receive Other Income rather than Royalties
where this has the effect of reducing the total sum payable to CE by way of Royalty
and Other Income.
	 
	 	(c)	 	The Licensee shall also pay CE the percentage payments specified in clause
4.4(a) on any difference between Other Income received and that which would have been
received had the transaction been an arm’s length transaction with an independent
third party exclusively for money.
	 
	 	(d)	 	Other Income shall not be due on development services to the extent that such
payments represent a market rate payment for such activities and provided that
separate payment is received for any use of or access to the Licensed Technology.

	4.5	 	Payment terms and price index

	 	(a)	 	Payments shall be made in accordance with Schedule 3 Part A.

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	 	(b)	 	The Licensee shall be responsible for collecting and paying to CE all
payments due to CE in respect of sub-licensing, including Royalties.
	 
	 	(c)	 	All consideration and any other monies due under this Agreement are exclusive
of Value Added Tax which where applicable shall be paid by the Licensee to CE. All
payments shall:

	 	(i)	 	be made in pounds sterling by telegraphic transfer to
the account of Cambridge Enterprise Ltd at Barclays Bank of Bene’t Street,
Business Centre, PO Box No 2, Cambridge CB2 3PZ, sort code: 201719, account
number 90532215;
	 
	 	(ii)	 	in the event of a change in the national currency of
the United Kingdom, be converted from pounds sterling into the new national
currency of the United Kingdom at the buying rate of such new currency as
quoted by Barclays Bank plc in London on the day when such currency change
comes into force;
	 
	 	(iii)	 	in the case of monies received by the Licensee from
sales or sub-licensing in a currency other than pounds sterling, be
calculated in the other currency and then converted into the national
currency of the United Kingdom at the buying rate of such other currency as
quoted by Barclays Bank plc in London as at the close of business on the
last business day of the Payment Period with respect to which the payment
is made;
	 
	 	(iv)	 	be made by the due date, failing which CE may charge
reasonable debt recovery costs together with interest on any outstanding
amount on a daily basis, compounded quarterly, from the day after the due
date until payment at the statutory rate in force on the due date under the
Late Payment of Commercial Debts (Interest) Act 1998; and
	 
	 	(v)	 	be made in full without deduction of taxes, charges or
duties, including bank charges or income tax.

	 	(d)	 	The payments due under clauses 4.3 and 4.4 shall be adjusted on each
Anniversary by the percentage change if any between RPI published in the month
immediately preceding such anniversary and the month immediately preceding the
Commencement Date. RPI means the Retail Prices Index published monthly by the U.K.
Office for National Statistics or such other index as may be published in
substitution.

	4.6	 	Reimbursement of patent costs
	 
	 	 	The Licensee shall be responsible for paying any outstanding external receipted costs in
connection with obtaining patent protection prior to the Commencement Date and any ongoing
patent costs from the Commencement Date.

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	4.7	 	Financial reports

	 	(a)	 	Each payment shall be accompanied by a financial report in the form set out
in Schedule 3 Part B. Such reports shall include details of payments due in respect
of sub-licensing.

	(b)	 	The Licensee shall report to CE the date of first sale of a Licensed Product
within 60 days of occurrence.

	4.8	 	Records

	 	(a)	 	The Licensee shall keep at its normal place of business and cause
Sub-Licensees to keep all information used to calculate payments due to CE under this
Agreement including detailed and up to date records and accounts showing the quantity,
description and value of Licensed Products sold by it and Sub-Licensees, on a country
by country basis. The Licensee shall keep these records separate or otherwise make
them extractable easily from its other business records and shall not dispose of them
until after the sixth anniversary of their creation.
	 
	 	(b)	 	The Licensee shall make such information available, on reasonable notice, for
audit during business hours by a CE’s duly authorised representative for the purpose
of verifying the accuracy of any report given by the Licensee to CE under this clause
4. The representative shall be required to keep confidential all information learnt
during any such inspection, and to disclose to CE only such details as may be
necessary to report on the accuracy of the Licensee’s financial reports. CE shall be
responsible for the representative’s professional charges unless the representative
certifies that there is an inaccuracy of more than 5% in any financial statement, in
which case the Licensee shall pay his charges in respect of that inspection. The
Licensee shall pay any underpayment reported by the representative within 30 days of
receipt of a CE’s invoice requiring payment for the same.
	 
	 	(c)	 	The Licensee shall ensure that CE has the same rights as those set out in
this clause 4.8 in any sub-licence of the Licensed Technology granted pursuant to this
Agreement.

	5	 	Commercialisation obligations and reports
	 
	5.1	 	Commercialisation
	 
	 	 	The Licensee shall proceed diligently to develop and commercially exploit the Licensed
Technology. The Licensee shall commit the necessary funding and personnel in order to
maximise the return for both parties. The Licensee shall use reasonable endeavours to
comply with project dates and activities contemplated in the commercialisation report
submitted in accordance with clause 5.2.

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	5.2	 	Commercialisation Report
	 
	 	 	Without prejudice to the generality of the Licensee’s obligations under clause
5.1, the Licensee shall send CE within 30 days of each Anniversary an updated, written
commercialisation report, covering as a minimum the 12 months preceding the Anniversary and
the 12 months following it. The report shall include:

	 	(a)	 	the projected and actual dates of first sale of a Licensed Product;
	 
	 	(b)	 	Planned Sales during the period covered by the report;
	 
	 	(c)	 	milestone progression (dates for projected and achieved milestones);
	 
	 	(d)	 	sub-licences granted during the period covered by the report;
	 
	 	(e)	 	all past, current and projected activities taken or to be taken by the
Licensee to bring Licensed Products to market and maximise the sale of Licensed
Products in the Territory; and
	 
	 	(f)	 	any Other Income invoiced or received during the period covered by the
report.

	 	 	CE’s receipt or approval of any such report shall not be taken to waive or qualify the
Licensee’s obligations under clause 5.1.
	 
	5.3	 	Independent Expert — Reference
	 
	 	 	If CE considers at any time during the Term that the Licensee has without legitimate reason
failed to proceed diligently to develop and commercially exploit the Licensed Technology,
CE shall be entitled to refer to an independent expert the following questions:

	 	(a)	 	whether the Licensee has acted diligently; and if not
	 
	 	(b)	 	what specific action the Licensee should have taken (“Specific Action”) in
order to have acted diligently.

	5.4	 	Independent Expert — appointment and decision
	 
	 	 	The independent expert shall be appointed in accordance with the provisions of Schedule 2
and his decision shall be final and binding on the Parties.
	 
	5.5	 	CE’s right to terminate
	 
	 	 	If the expert determines that the Licensee has failed to comply with its obligations under
this clause 5, and if the Licensee fails to take the Specific Action within 3 months of the
expert giving his decision in accordance with Schedule 2, CE shall be entitled, by giving,
at any time within 3 months after the end of that 3 month period, not less than 21 days’
notice to terminate this Agreement and the licences granted to the Licensee under clause 2.

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	5.6	 	Sub-licensing of undeveloped applications
	 
	 	 	If CE becomes aware (or if a third party becomes aware and notifies CE) that any of the
Patents are useful for an application covered by the Field but for
which Licensed Products have not been developed or are not currently under development by
the Licensee, then the CE may give written notice to the Licensee. Within ninety (90) days
following the Licensee’s receipt of CE’s notification the Licensee shall give CE written
notice stating whether the Licensee elects to develop Licensed Products for the
application. If the Licensee elects to develop and commercialise the proposed Licensed
Products for the new application, the Licensee shall submit a progress report describing
Licensee’s commercialisation efforts in developing the new application as part of the
commercialisation report required by clause 5.2. If the Licensee does not so elect, then
CE may at its discretion

	 	(a)	 	direct the Licensee (subject to appropriate due diligence) to grant or
	 
	 	(b)	 	itself grant

	 	 	a licence in a specific sub-field of the Field and such a sub-field will be removed from
the Field. CE shall give the Licensee an opportunity to comment on these options and will
consider these comments before making its decision. CE’s sub-licensee will be required to
reimburse the Licensee for such portion of the patent cost reimbursement fee paid to CE on
the Commencement Date as may be reasonable in the circumstances.
	 
	6	 	Intellectual property
	 
	6.1	 	Patent protection
	 
	 	 	The Licensee shall at its own cost and expense:

	 	(a)	 	endeavour to obtain valid patents in the name of CE pursuant to each patent
application listed in Schedule 1 so as to secure the broadest monopoly reasonably
available including the filing of divisional applications where appropriate; and
	 
	 	(b)	 	pay all renewal fees in respect of the Patents as and when due; and
	 
	 	(c)	 	ensure that CE receives copies of all correspondence concerning each patent
application listed in Schedule 1

	 	 	provided that if the Licensee wishes to abandon any such application or not to maintain any
such Patent in the whole of any part of the Territory (or to cease funding such application
or Patent) it shall give 3 months’ prior written notice to CE and on the expiry of such
notice period unless CE notifies the Licensee otherwise the Licensee shall cease to be
licensed for the whole or part of the Territory under the patent application or patent
identified in the notice.
	 
	6.2	 	Infringement of the Patents

	 	(a)	 	Each Party shall inform the other Party promptly if it becomes aware of any
infringement or potential infringement of any of the Patents in the Field.

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	 	(b)	 	Subject to clause 6.2(c), the Licensee shall be entitled to take legal or
other action against any third party to enforce the Patents at its sole expense. If
the alleged infringement is both within and outside the Field, the Parties shall
also co-operate with CE’s other licensees (if any) in relation to any such action.
	 
	 	 	 	If required by law CE shall agree to be joined in any such legal action (and may
elect to take part in the proceedings) subject to being indemnified and secured in a
reasonable manner as to any costs, damages, expenses or other liability and having
the right to be separately represented by its own counsel at its own expense.
	 
	 	(c)	 	Before starting legal action in accordance with sub-clause 6.2(b) or agreeing
to any settlement, the Licensee shall consult CE and take its views into account about
the advisability of the action or settlement, its effect on the University and CE’s
reputation and good name, the effect on any other CE licensees of any of the Licensed
Technology, the public interest and how the action should be conducted. Any monetary
recovery from any legal or other action shall be dealt with as follows: Each Party
shall be reimbursed any expenses reasonably incurred in securing the sums recovered.
Except where the Licensee is permitted to sublicense when the balance shall be deemed
to be Other Income, CE shall receive 25% of the balance. Clause 2.3 specifies the
extent to which the Licensee may grant a sub-licence to an infringer.
	 
	 	(d)	 	In the event that the Licensee is unsuccessful in persuading the alleged infringer to
desist or fails to have initiated an infringement action within six months of the Licensee
first becoming aware of the basis for such action, CE shall have the right, at its sole
discretion, to prosecute such infringement under its sole control and its sole expense,
and any recovery obtained shall belong to CE.

	6.3	 	Infringement of third party rights

	 	(a)	 	If any warning letter or other notice of infringement is received by a Party,
or legal action is brought against a Party, alleging infringement of third party
rights in the manufacture, use or sale of any Licensed Product or use of any Patents,
that Party shall promptly provide full details to the other Party, and the Parties
shall discuss the best way to respond.
	 
	 	(b)	 	The Licensee shall have the right but not the obligation to defend such
action and shall have the right to settle with such third party, provided that if any
action or proposed settlement involves the making of any statement, express or
implied, concerning the validity of any Patent, the consent of CE must be obtained
before taking such action or making such settlement.

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	7	 	Warranties and liability
	 
	7.1	 	Status of Licensed Technology and responsibility for development of Licensed Products
	 
	 	 	The Licensee acknowledges that the Licensed Technology is at an early stage
of development, that it is provided “as is” and specific results cannot be guaranteed. The
Licensee shall be exclusively responsible for the technical and commercial development and
manufacture of Licensed Products and for incorporating any modifications or developments
thereto that may be necessary or desirable and for all Licensed Products sold or supplied.
	 
	7.2	 	No representations or warranties

	 	(a)	 	The Licensee acknowledges that CE has not performed any searches or
investigations into the existence of any third party rights, which may affect any of
the Licensed Technology and that in entering into this Agreement it does not do so in
reliance on (and shall have no remedy in respect of) any representation, warranty or
other provision, except as expressly provided in this Clause, in which case any remedy
shall be limited to an action for breach of contract under the terms of this
Agreement.
	 
	 	(b)	 	CE warrants that the University and the Inventors have assigned to CE all
their intellectual property rights in the Patents.
	 
	 	(c)	 	Except as provided by Clause 7.2(b) CE makes no representations or warranties
of any kind, express or implied, concerning the Licensed Technology including (i) as
to the satisfactory quality or fitness for a particular purpose (ii) as to the absence
of latent or other defects, whether or not discoverable (iii) as to the validity or
scope of the Patents or (iv) that the exploitation of the Licensed Technology or any
Licensed Product will not infringe any patents or other intellectual property rights
of a third party and all conditions, warranties or other terms implied by statute or
common law are excluded from this Agreement to the fullest extent permitted by law.

	7.3	 	Liability and indemnity

	 	(a)	 	The limitations and exclusions in this Agreement shall not apply in respect
of claims for personal injury or death caused by negligence of CE, the University, the
University’s employees or students, the Inventors or the Principal Investigator or in
respect of fraud or fraudulent misrepresentation.
	 
	 	(b)	 	In respect of any damages or expenses of whatsoever nature and howsoever
arising (including in contract, tort, negligence or for breach of statutory duty or
misrepresentation) in connection with any use of the Licensed Technology or the
manufacture, use or sale of or any other dealing in the Licensed Products or otherwise
in connection with this Agreement or any relationships established by it:

	 	(i)	 	the aggregate liability of CE, the University, the
University’s employees and students, the Inventors and the Principal
Investigator shall be limited to the total income which CE has received
from the Licensee (less any expenses which CE has incurred in obtaining,
maintaining or defending the Patents) during the six years, preceding the
year of the Term in which the liability arises or ___whichever shall be the higher; and

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	 	(ii)	 	in no circumstances shall CE, the University, the
University’s employees or students, the Inventors or the Principal
Investigator be liable for any indirect, incidental or consequential
damages including any loss of profits, revenue, business opportunity or
goodwill.

	 	(c)	 	The Licensee shall indemnify CE, the University, the University’s employees
and students and the Inventors and Principal Investigator up to ___against all
direct, indirect, incidental, consequential or special liability, loss, damages or
expenses, including legal and other professional fees and expenses, howsoever arising
(including in contract, tort, negligence or for breach of statutory duty or
misrepresentation) from or in connection with any claim or threatened claim by any
third party relating to or arising from the use by the Licensee or any Sub-Licensee of
the Licensed Technology or otherwise in connection with the manufacture, use or sale
of or any other dealing in any of the Licensed Products by the Licensee or any
Sub-Licensee. Nothing in this sub-clause shall prevent the Licensee recovering from
CE, subject to the exclusions and limitations set out this Agreement, damages due to
the Licensee for default by CE of any of its obligations under this Agreement.

	8	 	Duration and termination
	 
	8.1	 	Commencement and termination by expiry
	 
	 	 	This Agreement, and the licences granted hereunder, shall come into effect on the
Commencement Date and, unless terminated earlier in accordance with this clause 8, shall
continue in force on a country by country basis until the date on which all the Patents
have expired or been revoked without a right of further appeal.
	 
	8.2	 	Early termination by the Licensee
	 
	 	 	The Licensee may terminate this Agreement at any time on 90 days’ notice in writing to CE.
	 
	8.3	 	Early termination by CE
	 
	 	 	CE may terminate this Agreement

	 	(a)	 	forthwith by giving written notice to the Licensee if the Licensee or any
Sub-Licensee commence(s) legal proceedings, or assist(s) any third party to commence
legal proceedings, to challenge the validity or ownership of any of the Patents; and
	 
	 	(b)	 	as provided in clause 5.

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	8.4	 	Early termination by either party
	 
	 	 	Without prejudice to any other right or remedy, either Party may by written notice to the
other Party terminate this Agreement at any time if

	 	(a)	 	the other Party has materially breached this Agreement (and for the avoidance
of doubt non-payment by the Licensee under clause 4 shall be deemed a material breach)
and, in case of a remediable breach other than a persistent breach, has failed to
remedy that breach within thirty days of the date of service of a written notice from
the other Party specifying the breach and requiring that it be remedied; or
	 
	 	(b)	 	the other Party ceases to carry on business, is unable to pay its debts when
they fall due, is declared bankrupt, or an order is made or a resolution passed for
the winding up of that other Party or the appointment of an administrator, receiver,
liquidator or manager of that other Party.

	8.5	 	Consequences of termination

	 	(a)	 	Upon termination of this Agreement by expiry under clause 8.1 above, the
licence of the Patents in clause 2.1(a) shall terminate.
	 
	 	(b)	 	Upon termination of this Agreement for any reason otherwise than in
accordance with clause 8.1:

	 	(i)	 	the Licensee and its Sub-Licensees shall be entitled to
sell, use or otherwise dispose of (subject to payment of royalties under
clause 4.2) any unsold or unused stocks of the Licensed Products for a
period of 6 months following the date of termination;
	 
	 	(ii)	 	subject to paragraph (i) above, the Licensee shall no
longer be licensed to use or otherwise exploit in any way, either directly
or indirectly, the Patents or the Know-how, in so far and for as long as
any of the Patents remains in force;
	 
	 	(iii)	 	subject to paragraph (i) above, the Licensee shall
consent to the cancellation of any formal licence granted to it, or of any
registration of it in any register, in relation to any of the Patents;
	 
	 	(iv)	 	each Party shall return to the other (or destroy at the
other’s request) all Confidential Information disclosed to it by the other
and all materials containing any Confidential Information in its possession
or control (including, in the case of the Licensee, in the possession or
control of its Sub-Licensees); and
	 
	 	(v)	 	upon CE’s request, the Parties shall negotiate in good
faith the terms of an agreement between them on reasonable commercial terms
to enable CE to arrange for the further exploitation of the Licensed
Technology and Licensed Products as they exist at the date of termination
including to provide CE with all improvements, information, know-how and
results created or
developed by the Licensee or its Sub-Licensees.

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	 	(c)	 	If the Parties are unable to agree the terms of an agreement as described in
clause 8.5(b)(v) CE may initiate the procedure in clause 9.
	 
	 	(d)	 	The expiry or termination of this Agreement does not affect any rights or
obligations of either Party which have arisen or accrued up to and including the date
of expiry or termination including the right to payment under this Agreement.
	 
	 	(e)	 	Clauses 2.3(d), 2.4, 3.2 to 3.7, 4 (in respect of payments due on or before
termination or under clause 8.5(b)(i)), 7, 8.5, 9 and 10 survive expiry or termination
(for whatever reason).

	9	 	Dispute resolution
	 
	 	 	The Parties agree that should any dispute arise between them in relation to this Agreement
(other than under clause 5), they shall meet as soon as practicable and negotiate in good
faith with a view to resolving the dispute.
	 
	 	 	If the Parties are unable to settle any dispute by negotiation within 28 days the Parties
will attempt to settle it by mediation in accordance with the Centre for Effective Dispute
Resolution (CEDR) Model Mediation Procedure.
	 
	 	 	To initiate a mediation a party must give notice in writing to the other party, requesting
a mediation in accordance with this clause 9.
	 
	 	 	Nothing in this Clause 9 shall prevent either party from applying for urgent injunctive
relief to restrain any actual or potential breach of this Agreement.
	 
	10	 	General
	 
	10.1	 	Force majeure.

	 	(a)	 	Notwithstanding any other provision of this Agreement, no Party need act if
it is impossible to act due to force majeure, meaning any cause beyond its control
(including war, riot, natural disaster, labour dispute, or law taking effect after the
date of this Agreement). A Party affected by force majeure agrees to notify the other
Party promptly after it determines that it is unable to act.
	 
	 	(b)	 	A Party has no responsibility or liability for any loss or expense suffered
or incurred by the other Party as a result of its not acting for so long as the force
majeure under clause 10.1 continues. However, the non-performing Party agrees to make
reasonable efforts to avoid or remove the circumstances giving rise to the force
majeure and agrees to continue performance under this Agreement promptly when they are
removed.

	10.2	 	Assignment.

	 	(a)	 	Save as provided by clause 10.2(b) and 10.2(c) neither party may assign,
transfer, charge or deal in any other manner with this Agreement nor
purport to do so without the prior written consent of the other party.

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	 	(b)	 	CE may assign the whole or any of its rights and obligations under this
Agreement provided that CE’s assignee shall undertake to be bound by and perform CE’s
obligations under this Agreement. CE shall notify the Licensee of any assignment under
this Agreement.
	 
	 	(c)	 	The Licensee may assign its rights and obligations under this Agreement where
the assignment is connected with the transfer of all or substantially all of the
Licensee’s assets to a single purchaser and provided such purchaser undertakes to CE
to be bound by and perform the obligations of the Licensee under this Agreement and is
capable of performing such obligations. The Licensee shall notify CE of any such
assignment.

	10.3	 	Waiver
	 
	 	 	A provision of this Agreement or any right created under it cannot be waived or varied
except in writing signed by the Parties.
	 
	10.4	 	Invalid clauses
	 
	 	 	If the whole or any part of a provision of this Agreement is void, unenforceable or illegal
in a jurisdiction it is severed for that jurisdiction. The remainder of this Agreement has
full force and effect and the validity or enforceability of that provision in any other
jurisdiction is not affected. This clause has no effect if the severance alters the basic
nature of this Agreement or is contrary to public policy.
	 
	10.5	 	No agency
	 
	 	 	Nothing in this Agreement shall be construed as creating any agency, partnership or other
form of joint enterprise between the Parties and neither Party has the authority to act for
or bind the other Party in any way.
	 
	10.6	 	Notices
	 
	 	 	Any notice to be given under this Agreement shall be in writing and delivered by hand,
prepaid registered post or facsimile to the other Party at the address or fax number set
out below or to such other address or fax number as either Party may specify in writing to
the other.

	 	 	 
	Notices to CE

	 	10 Trumpington Street,
	 
	 	 
	 

	 	Cambridge
	 
	 	 
	 

	 	CB2 1QA.
	 
	 	 
	 

	 	Fax number: +44 (0) 1223 332988.

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	Notices to the Licensee

	 	Psynova Neurotech Limited
	 
	 	 
	 

	 	St John’s Innovation Centre,
	 
	 	 
	 

	 	Cowley Road,
	 
	 	 
	 

	 	Cambridge
	 
	 	 
	 

	 	CB4 0WS
	 
	 	 
	 

	 	Fax 01223 703146

	 	 	Notices are deemed to have been given:

	 	(a)	 	if delivered by hand, at the time of the delivery unless delivered after 5pm
in the place of receipt or on a non-business day, in which case the notice is deemed
to have been given at 9am the next business day;
	 
	 	(b)	 	if sent by registered post from within the United Kingdom, three business
days after posting (or seven business days if posted from outside the United
Kingdom); and
	 
	 	(c)	 	if sent by facsimile, at the time the facsimile is received shown in the
transmission report as the time that the whole facsimile was sent unless received
after 5pm in the place of receipt or on a non-business day, in which case the notice
is deemed to have been given at 9am the next business day.

	10.7	 	Law and jurisdiction
	 
	 	 	This Agreement and any documents to be entered into pursuant to it shall be governed by and
construed in accordance with English law and each Party irrevocably submits to the
exclusive jurisdiction of the courts of England over any claim or matter arising under or
in connection with this Agreement and the documents entered into pursuant to it except that
a Party may seek an interim injunction as described in Clause 9 in any court of competent
jurisdiction.
	 
	10.8	 	Further action
	 
	 	 	Each Party agrees to execute, acknowledge and deliver such further instruments, and do all
further similar acts, as may be necessary or appropriate to carry out the purposes and
intent of this Agreement.
	 
	10.9	 	Announcements
	 
	 	 	A Party may not make press or other announcements or releases relating to this Agreement or
the transactions the subject of this Agreement without the approval of the other Party to
the form and manner of the announcement or release unless and to the extent that the
announcement or release:

	 	(a)	 	is required to be made by law or by a stock exchange; or

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	 	(b)	 	is made in the annual report of CE, the University or one of the
University’s departments.

	10.10	 	Entire agreement
	 
	 	 	This Agreement constitutes the entire agreement and understanding of the Parties and
supersedes all negotiations, understandings or previous agreement between the Parties
relating to the subject matter of this Agreement. Nothing in this Agreement, including
this clause and clause 7.2, shall operate to limit or exclude liability for fraud or
fraudulent misrepresentation.
	 
	10.11	 	Third party rights
	 
	 	 	The University, any University wholly owned subsidiary, the University’s employees or
students, the Inventors and the Principal Investigator may enforce those terms of this
Agreement which expressly confer rights on them, subject to and in accordance with the
Contracts (Rights of Third Parties) Act 1999. Save as aforesaid no term of this Agreement
shall be enforceable under that Act by a person who is not a party to this Agreement, but
this shall not affect any right or remedy of any third party which exists or is available
other than under that Act. Notwithstanding that any term of this Agreement may be or
become enforceable under that Act by a person which is not a party to it, this Agreement
may be amended in any respect, or suspended, cancelled or terminated by agreement in
writing between the Parties, in each case without the consent of such third party.
	 
	10.12	 	Export Control Regulations

	 	(a)	 	“Export Control Regulations” mean any United Nations trade sanctions or EU or
UK legislation or regulation, from time to time in force, which impose arms embargoes
or control the export from the United Kingdom of goods, technology or software,
including weapons of mass destruction and arms, military, paramilitary and security
equipment and dual-use items (items designed for civil use but which can be used for
military purposes) and certain drugs and chemicals.
	 
	 	(b)	 	The Licensee shall ensure that, in using the Licensed Technology and in
selling Licensed Products, it shall not and nor shall its employees
or sub-contractors
or any Sub-Licensee directly or indirectly breach or compromise compliance with any
Export Control Regulations.

	10.13	 	Non-use of names and marking of Licensed Products

	(a)	 	The Licensee shall not use and shall ensure that Sub-Licensees do not use the
name, any adaptation of the name, any logo, trademark or other device of the
“University of Cambridge”, “Cambridge Enterprise Limited” nor of the Inventors or
Principal Investigator in any advertising, promotional or sales materials without
prior written consent obtained from CE in each case, except that Licensee may state
that it is licensed by CE to use the Licensed Technology and to make and supply the
Licensed Products.

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	(b)	 	To the extent commercially feasible the Licensee shall mark and cause
Sub-Licensees to mark each patented product with the number of each issued Patent
which applies to it.

	10.14	 	Insurance
	 
	 	 	Without limiting its liability under clause 7.3(c) the Licensee shall take out with a
reputable insurance company and maintain at all times during the Term public and product
liability insurance including against all loss of and damage to property (whether real
personal or intellectual) and injury to persons including death arising out of or in
connection with this Agreement and the Licensee’s and Sub-Licensees’ use of the Licensed
Technology and use, sale of or any other dealing in any of the Licensed Products. Such
insurances may be limited in respect of one claim provided that such limit must be at least
£5 million. Product liability insurance shall continue to be maintained for a further 6
years from the end of the Term.
	 
	10.15	 	Legal Compliance
	 
	 	 	The Licensee shall comply with all statutes, bye laws, regulations, codes of practice,
European and other directives, and other provisions (and any
amendment or re-enactment) and
all professional rules and standards to be observed and performed in connection with the
development, manufacture and sale or making available of Licensed Products.

Copyright © 2003-8 University of Cambridge

Page 25 of 30

 

AGREED by the parties through their authorised signatories:

	 	 	 
	For and on behalf of

	 	For and on behalf of
	 
	 	 
	CAMBRIDGE ENTERPRISE LIMITED

	 	PSYNOVA NEUROTECH LIMITED
	 
	 	 
	 
	 	 
	 

	 	 
	 	 	 
	signed

	 	signed
	 
	 	 
	 

	 	 
	 	 	 
	print name

	 	print name
	 
	 	 
	 

	 	 
	 	 	 
	title

	 	title
	 
	 	 
	 

	 	 
	 	 	 
	date

	 	date

Copyright © 2003-8 University of Cambridge

Page 26 of 30

 

Schedule 1

Part A The Patents

	 	 	 
	Title:

	 	 
	 
	 	 
	Inventors:
	 	 
	 
	 	 
	Filing Number(s):
	 	 
	 
	 	 
	Filing Date:
	 	 
	 
	 	 
	 
	 	 
	 
	 	 
	Title:
	 	 
	 
	 	 
	Inventors:
	 	 
	 
	 	 
	Filing Number(s):
	 	 
	 
	 	 
	Filing Date:
	 	 

Page 27 of 30

 

Schedule 2

Appointment of Expert

	1	 	Pursuant to clause 5.3, CE may serve notice on the Licensee (“Referral Notice”) that it
wishes to refer to an expert (the “Expert”) the questions set out in clause 5.3.
	 
	2	 	The parties shall agree the identity of a single independent, impartial expert to determine
such questions. In the absence of such agreement within 30 days of the Referral Notice, the
questions shall be referred to an expert appointed by the President of Law Society of England
and Wales.
	 
	3	 	60 days after the giving of a Referral Notice, both parties shall exchange simultaneously
statements of case in no more than 10,000 words, in total, and each side shall simultaneously
send a copy of its statement of case to the Expert.
	 
	4	 	Each party may, within 30 days of the date of exchange of statement of case pursuant to
paragraph 3 above, serve a reply to the other side’s statement of case of not more than 10,000
words. A copy of any such reply shall be simultaneously sent to the Expert.
	 
	5	 	The Expert shall make his decision on the said questions on the basis of written statements
and supporting documentation only and there shall be no oral hearing. The Expert shall issue
his decision in writing within 30 days of the date of service of the last reply pursuant to
paragraph 4 above or, in the absence of receipt of any replies, within 60 days of the date of
exchange pursuant to paragraph 3 above.
	 
	6	 	The Expert’s decision shall be final and binding on the parties.
	 
	7	 	The Expert’s charges shall be borne equally by the parties.

Page 28 of 30

 

Page 29 of 30

 

Page 30 of 30exv10w20

Exhibit 10.20

FOURTH AMENDMENT TO LEASE AGREEMENT

     THIS FOURTH AMENDMENT TO LEASE AGREEMENT (this “Amendment”) is entered into between CFO2
AUSTIN, LLC, a Delaware limited liability company (“Landlord”), and RULES-BASED MEDICINE, INC., a
Delaware corporation (“Tenant”), as of March ___, 2010 (the “Effective Date”), with reference to
the following:

     A. STAG Investors 2000, Ltd. (predecessor-in-interest to Landlord) and Tenant entered into
that certain Lease Agreement dated March 18, 2003; and Landlord and Tenant entered into that
certain First Amendment to Lease Agreement dated April 2007 (the “First Amendment”), that certain
Second Amendment to Lease Agreement dated September 2, 2008 (the “Second Amendment”), and that
certain Third Amendment to Lease Agreement dated September 1, 2009 (the “Third Amendment”) (as
amended, the “Lease”), currently covering approximately 14,614 rentable square feet on the first
floor (the “Premises”) and the Temporary Space (as defined in Paragraph 2 of the Third Amendment)
consisting of 1,282 rentable square feet on the first floor of the building known as Stonecreek
Park, and located in Austin, Texas (the “Building”).

     B. Landlord and Tenant now desire to further amend the Lease as set forth below. All
capitalized terms used in this Amendment and not defined herein shall have the same meanings set
forth in the Lease.

     NOW, THEREFORE, in consideration of the above recitals which by this reference are
incorporated herein, the mutual covenants and conditions contained herein and other GOOD AND
VALUABLE CONSIDERATION, the receipt and sufficiency of which are acknowledged by the parties
hereto, the parties agree this Amendment shall amend and modify the Lease as follows:

1. Second Extension Period. The expiration date of the term of the Lease is extended for a
period of thirty-seven (37) months (the “Second Extension Period”) and the term will now expire on
June 30, 2015. Tenant acknowledges that it has no further extension or renewal rights or options
under the Lease, except as provided in Paragraph 14 (Option to Extend) of this Amendment.

2. Premises.

     (a) Temporary Space. As of March 1, 2010, the Temporary Space shall become a part of the
Premises under the Lease, and the term “Premises” as used in the Lease shall mean and include
approximately 15,896 rentable square feet, being the sum of the rentable square feet of the
current Premises (14,614 square feet) and the Temporary Space (1,282 square feet) (the “Current
Premises”).

     (b) Third Expansion Space. Commencing on the Third Expansion Space Commencement Date (as
defined in Paragraph 4(b) below), Landlord leases to Tenant and Tenant leases from Landlord
approximately 20,429 rentable square feet (the “Third Expansion Space”) located on the first floor
of the Building and known as Suite 100 as shown on the attached Exhibit A, which is
incorporated into this Amendment for all purposes. As of the Third Expansion Space Commencement
Date, the term “Premises” as used in the Lease shall mean and

1

 

include approximately 36,325 rentable square feet, being the sum of the rentable square feet of the
Current Premises, as described in Paragraph 2(a) above (15,896 rentable square feet) and the Third
Expansion Space (20,429 rentable square feet). The lease of the Third Expansion Space is subject to
all of the terms and conditions of the Lease currently in effect, except as modified in this
Amendment.

3.  Rent.

     (a) Current Premises. Notwithstanding the Base Rent amounts set forth in Paragraph 2 of the
First Amendment and Paragraph 2 of the Second Amendment, commencing on March 1, 2010, and
continuing through the Second Extension Period, Tenant shall, at the time and in the manner
provided in the Lease, pay to Landlord as Base Rent for the Current Premises the amounts set forth
in the following rent schedule:

CURRENT PREMISES

	 	 	 	 	 	 	 
	 	 	 	 	ANNUAL RATE PER	 	 
	 	 	 	 	RENTABLE SQUARE	 	MONTHLY
	FROM	 	THROUGH	 	FOOT	 	BASE RENT
	March 1, 2010
	 	June 30, 2010
	 	$14.00
	 	$18,545.33
	July 1, 2010
	 	June 30, 2011
	 	$14.50
	 	$19,207.67
	July 1, 2011
	 	June 30, 2012
	 	$15.00
	 	$19,870.00
	July 1, 2012
	 	June 30, 2013
	 	$15.50
	 	$20,532.33
	July 1, 2013
	 	June 30, 2014
	 	$16.50
	 	$21,857.00
	July 1, 2014
	 	June 30, 2015
	 	$17.50
	 	$23,181.67

 

			
	*	 	Based on 14,614 rentable square feet. Tenant shall pay Base Rent for the Temporary
Space for February 2010 as described in Paragraph 3 of the Third Amendment.

     (b) Third Expansion Space. Commencing on July 1, 2010 (“Third Expansion Space
Commencement Date”), and continuing through the Second Extension Period, Tenant shall, at the time
and place and in the manner provided in the Lease, pay to Landlord as Base Rent for 14,000 rentable
square feet of the Third Expansion Space (“Space A”) and Base Rent for 6,429 rentable square feet
of the Third Expansion Space (“Space B”) the amounts set forth in the following rent schedules:

THIRD EXPANSION SPACE – Space A

	 	 	 	 	 	 	 
	 	 	 	 	ANNUAL RATE PER	 	 
	 	 	 	 	RENTABLE SQUARE	 	MONTHLY
	FROM	 	THROUGH	 	FOOT	 	BASE RENT
	July 1, 2010
	 	August 31, 2010
	 	$14.00
	 	Abated Rent***
	September 1, 2010
	 	June 30, 2011
	 	$14.00
	 	$16,333.33
	July 1, 2011
	 	June 30, 2012
	 	$14.50
	 	$16,916.67
	July 1, 2012
	 	June 30, 2013
	 	$15.50
	 	$18,083.33
	July 1, 2013
	 	June 30, 2014
	 	$16.50
	 	$19,250.00
	July 1, 2014
	 	June 30, 2015
	 	$17.50
	 	$20,416.67

 

			
	**	 	TESCD = Third Expansion Space Commencement Date
	 
	***	 	Subject to the terms specified in Paragraph 3(c) below, the monthly Base Rent and
Tenant’s Proportionate Share of Tenant Costs for Space A for the months of July 2010 and
August 2010 shall be abated.

2

 

THIRD EXPANSION SPACE – Space B

	 	 	 	 	 	 	 
	 	 	 	 	ANNUAL RATE PER	 	 
	 	 	 	 	RENTABLE SQUARE	 	MONTHLY
	FROM	 	THROUGH	 	FOOT	 	BASE RENT
	July 1, 2010
	 	June 30, 2011
	 	$14.00
	 	Abated Rent****
	July 1, 2011
	 	June 30, 2012
	 	$14.50
	 	$7,768.38
	July 1, 2012
	 	June 30, 2013
	 	$15.50
	 	$8,304.13
	July 1, 2013
	 	June 30, 2014
	 	$16.50
	 	$8,839.88
	July 1, 2014
	 	June 30, 2015
	 	$17.50
	 	$9,375.63

 

			
	****	 	Subject to the terms specified in Paragraph 3(c) below, the monthly Base Rent
and Tenant’s Proportionate Share of Tenant Costs for Space B from July 1, 2010 through
June 30, 2011 shall be abated.

     (c) Abated Rent. Notwithstanding anything contained herein or in the Lease to the
contrary, Base Rent in the monthly amount of $16,333.33 for Third Expansion Space-A, and $7,500.50
for Third Expansion Space-B, and Tenant’s Proportionate Share of Taxes, utilities and other
services, and other costs collectively referred to as Tenant Costs in Paragraph 2C of the Lease
shall be abated for the time periods specified above. All such amounts are referred to herein as
the “Abated Rent”. If, at the time any Abated Rent is due to Tenant, there is an uncured Event of
Default under the Lease and Landlord has not terminated the Lease as provided for in Paragraph
20(a) of the Lease, Landlord shall provide Tenant with a second written notice of such Event of
Default, unless the original Event of Default was pursuant to Paragraph 19C or Paragraph 19D of the
Lease in which case the above-described notice is not required, and Tenant shall have the same
right to cure such Event of Default as Tenant had when Tenant was first notified of the Event of
Default as provided for in Paragraph 19 of the Lease, as modified by Paragraph 21 of this
Amendment. No further Rent shall be abated unless, following such second written notice, Tenant
cures such Event of Default within applicable cure period described in the Lease. Notwithstanding
anything to the contrary in this Paragraph 3(c), in the event of termination of the Lease as a
result of Tenant’s failure to cure an Event of Default, in addition to any other amounts
recoverable by Landlord pursuant to the terms of the Lease, Tenant shall pay to Landlord an amount
equal to the unamortized portion (as of the date of such default) of any Abated Rent realized by
Tenant pursuant to this Amendment based on a sixty
(60) month straight line amortization schedule with the first month of such period being July,
2010.

3

 

4. Condition of the Third Expansion Space.

     (a) Tenant accepts the Third Expansion Space in its “as-is” condition as of the Effective
Date, except for latent defects in the Third Expansion Space of which Tenant notifies Landlord
within one hundred eighty (180) days after the Third Expansion Space Commencement Date other than
work performed by Tenant, or any of its contractors, subcontractors, agents or employees (“Latent
Defects”), and subject to the terms of the Lease and this Amendment. However, any necessary
construction of leasehold improvements shall be accomplished and the cost of such construction
shall be paid in accordance with the “Work Letter” between Landlord and Tenant attached to this
Amendment as Exhibit B. Tenant hereby agrees that the Third Expansion Space is
in good order and satisfactory condition and that, except as otherwise expressly set forth
in the Lease, there are no representations or warranties of any kind, express or
implied, by Landlord regarding the Third Expansion Space, the Building or the
Project. Tenant acknowledges that Landlord has not undertaken to perform any modification,
alteration or improvement to the Third Expansion Space or the Current Premises. By taking
possession of the Third Expansion Space, Tenant waives (i) any claims due to
defects in the Third Expansion Space except for Latent Defects; and (ii)
all express and implied warranties of suitability, habitability and fitness for any
particular purpose. Tenant’s right to terminate the Lease due to the condition of the Third
Expansion Space or the Current Premises shall be limited to those rights, if any, contained in the
Lease or this Amendment. Landlord hereby represents that, to Landlord’s current actual knowledge,
Landlord has received no written notice from any applicable governmental authority of any current
violation of any laws, including, without limitation, the Americans with Disability Act, with
respect to the Third Expansion Space.

     (b) The term “Third Expansion Space Commencement Date” means July 1, 2010. However, Landlord
shall make the Third Expansion Space available to Tenant’s general contractor (who is subject to
approval pursuant to the terms of this Amendment and the Lease) for the commencement of the Tenant
Work (as defined in Exhibit B of this Amendment which is incorporated into this
Amendment for all purposes) upon the (i) execution of this Amendment and (ii) receipt by Landlord
of a certificate evidencing the insurance required to be carried by Tenant and Tenant’s general
contractor as required herein. Thereafter and subject to the terms conditions set forth below,
Landlord shall reasonably cooperate with Tenant and Tenant’s general contractor in the performance
of the Tenant Work, including, but not limited to: (A) providing access to Tenant’s general
contractor on a twenty-four (24) hour basis, if required by Tenant and reasonably necessary for
Tenant to complete such work by July 1, 2010, and (B) allowing Tenant’s general contractor access
to other areas of the Building and common areas as may be reasonably necessary to complete the
Tenant Work. If Tenant’s general contractor requires access as described in the previous sentence,
then Tenant shall provide Landlord with at least twenty-four (24) hours’ prior written notice and
a representative of Tenant shall be present during the performance of the Tenant Work at all times
after normal business hours; for the purposes of this Paragraph 4(b), normal business hours are
deemed to be 8:00 a.m. to 6:00 p.m. Monday through Friday. If any portion of the Tenant Work being
performed after normal business hours requires the Landlord’s building engineer to be present, as
reasonably determined by Landlord or Tenant, Tenant shall pay Landlord for the cost of such
engineer at a rate equal to $40.00 per hour for which the engineer is present, or a prorated
amount for periods of less than

4

 

an hour, within fifteen (15) days of Tenant’s receipt of Landlord’s invoice for such service which
shall specify the day(s) and hour(s) or portion of such hour the engineer was present. Landlord
shall permit Tenant and/or its vendors, and contractors to enter the Third Expansion Space subject
to the terms of this Amendment and the Lease, at the same time Tenant’s general contractor is in
the space in order to complete all other work Tenant requires to make such space ready for Tenant’s
occupancy including, but not limited to, installation of telephone and data cabling, and
dismantling and removal or reconstruction of Tenant’s furniture which is currently located in the
space.

5. Escrow Deposits.

     (a) Tenant’s Proportionate Share. Notwithstanding anything in Paragraph 1B of the Lease to the
contrary, as of the Effective Date, the Rentable Square Footage of the Project is 76,910 square
feet. Commencing on March 1, 2010, Tenant’s Proportionate Share of Tenant Costs payable under
Paragraph 2C of the Lease shall be increased to 20.67% based on the Temporary Space becoming part
of the Premises. Commencing on the Third Expansion Space Commencement Date, Tenant’s Proportionate
Share of Tenant Costs shall be increased to 47.23% based on the Third Expansion Space becoming part
of the Premises.

     (b) Tenant Costs. As of the Effective Date and continuing through the Second Extension
Period, Tenant shall continue to pay Tenant’s Proportionate Share of Tenant Costs (as modified
herein) except during those periods in which Tenant receives Abated Rent, as more particularly
described herein.

     (c) Controllable Costs. Notwithstanding anything in the Lease or this Amendment to the
contrary, during the Second Extension Period, Landlord agrees that future increases in the Tenant’s
Proportionate Share of actual Controllable Costs (which costs are defined below) above the actual
Controllable Costs for 2010 and for any subsequent year during any calendar year during the term of
the Lease shall be limited to the lesser of (i) the increase in the actual Controllable Costs for
such year from the preceding year or (ii) a four percent (4%) annual increase, on a cumulative,
compounded basis, over Tenant’s Proportionate Share of actual Controllable Costs for 2010. The term
“Controllable Costs” means all Tenant Costs excluding the cost of utilities, insurance and Taxes
(as more particularly described in Paragraph 3A of the Lease and modified by Paragraph 3(b) of the
Second Amendment and Paragraph 5(d) of this Amendment).

     (d) Taxes. Additionally, Landlord and Tenant agree that, notwithstanding anything to the
contrary contained in the Lease, as amended, the term “Taxes” shall include (i) all reasonable
expenses and fees incurred by Landlord in connection with the negotiation or protest of real estate
taxes for the Project that results in lower real estate taxes for the Project, provided that
Landlord shall credit against Taxes any refunds received from such negotiations or protest to the
extent originally included in Taxes (less Landlord’s costs), and (ii) taxes under Chapter 171 of
the Texas Tax Code, as may be renumbered from time to time, but only to the extent and for so long
as such taxes are determined by reference to the “taxable margin” of Landlord, such taxes to be
apportioned as provided by the Texas Tax Code and determined using elections or methods applicable
to Landlord that result in the lowest taxable margin, with such taxes being allocated to the
Project under generally accepted accounting principles based on the portion of

5

 

the taxable margin of Landlord from the Project relative to the taxable margin from other sources
of Landlord and its Affiliates included in any combined group report.

     (e) Capital Improvements. As of February 1, 2010, subject to the limitation stated below
Tenant Costs shall include the amortization of capital expenditures incurred by Landlord as
follows: (i) to conform with laws which are amended, become effective, or are interpreted or
enforced differently, after May 1, 2010, amortized uniformly over the estimated useful life of the
improvement in accordance with generally accepted accounting principles; and (ii) for the purpose
of reducing or controlling increases in Tenant Costs (such as energy savings equipment) amortized
uniformly over the anticipated payback period; provided, however, the maximum amount which is
added to Tenant Costs for any given calendar year for a capital improvement(s) installed for the
purpose of reducing or controlling increases in Tenant Costs shall not exceed the lesser of (a)
the annual amortization of the cost of the item(s) or (b) the actual costs saved as a result of
the installation thereof.

     (f) Adjustments to Tenant Costs. As of February 1, 2010, the last three (3) sentences of
Paragraph 2C on page 4 of the Lease are deleted in their entirety, and adjustments to Tenant Costs
shall be made in accordance with the terms and conditions of this Paragraph 5(f). If the average
amount of Rentable Square Footage leased in the Project during any calendar year during the term of
the Lease is less than ninety-five percent (95%) of the Rentable Square Footage of the Project on
an average annualized basis, and Landlord estimates in its reasonable discretion that the expense
actually incurred by Landlord for the cost of (i) utilities, and (ii) janitorial services for the
Project are lower than what would be incurred for each item if at least ninety-five percent (95%)
of the Rentable Square Footage of the Project were leased, then at Landlord’s election, appropriate
adjustments using reasonable cost projections based on industry standards (calculated in a manner
which is consistent with the methodology set forth in the example shown on Exhibit C, which
is incorporated into this Amendment for all purposes) may be made by Landlord to increase the
actual cost of each item to the amount Landlord would project to incur for such calendar year if
ninety-five percent (95%) of the Rentable Square Footage of the Project were leased.
Notwithstanding Landlord’s right to adjust the expenses as provided above or anything contained in
the Lease or this Amendment to the contrary, in no event will Landlord bill tenants of the Project
or collect from tenants of the Project more than one hundred percent (100%) of the actual amount
incurred by Landlord for any calendar year for each item specified above. In the event an
adjustment is made pursuant to this Paragraph 5(f), Landlord shall provide Tenant with written
notice specifying in reasonable detail the adjustment which was made (including the specifics of
the calculation) at the same time Landlord provides Tenant a written statement detailing the actual
Tenant Costs for such calendar year; provided, however, for purposes of this Paragraph 5(f), the
amount of Rentable Square Footage leased shall be determined by the total amount of rentable square
feet specified in all of the leases in the Project for which the commencement date of each lease
term has begun for each such calendar year during the term of the Lease.

     (g) Substantiation of Tenant Costs. Within ten (10) days of Landlord’s receipt of Tenant’s
written request, Landlord shall provide (i) a reasonably detailed accounting, as determined by
Landlord, of all Tenant Costs for the preceding year that is capable of being generated by
Landlord’s then-current accounting software, and (ii) Tenant with access to all supporting
documentation for such costs.

6

 

     (h) Audit Rights. Within one hundred eighty (180) days after Landlord furnishes a statement of
actual Tenant Costs for any calendar year (the “Audit Election Period”), Tenant may, at its expense
or Landlord’s expense as specified below, elect to audit Tenant Costs for such calendar year only,
subject to the following conditions: (i) there is no uncured Event of Default under this Lease;
(ii) the audit shall be prepared by an independent certified public accounting firm of reputable
local, regional or national standing; (iii) in no event shall any audit be performed by a firm
retained on a “contingency fee” basis; (iv) the audit shall commence within thirty (30) days after
Landlord makes Landlord’s books and records available in Austin, Texas to Tenant’s auditor and
shall conclude within sixty (60) days after commencement; (v) the audit shall be conducted during
Landlord’s normal business hours at the location where Landlord makes its books and records
available in Austin, Texas, and shall not unreasonably interfere with the conduct of Landlord’s
business; (vi) Tenant and its accounting firm shall treat any audit in a confidential manner and
shall each execute a commercially reasonable confidentiality agreement for Landlord’s benefit prior
to commencing the audit; and (vii) the accounting firm’s audit report shall, at no charge to
Landlord, be submitted in draft form for Landlord’s review and comment before the final approved
audit report is delivered to Landlord, and any reasonable comments by Landlord shall be
incorporated into the final audit report. Landlord shall have a period of ten (10) days after its
receipt of the draft form to review the draft and provide its reasonable written comments, if any,
to Tenant. If Tenant does not receive Landlord’s reasonable written comments within the ten (10)
day time period, Tenant shall have no obligation to incorporate Landlord’s comments into the final
audit report. In the event Tenant’s audit discloses overcharges of Tenant Costs made during the
prior calendar year which, when totaled, establish that the sum overcharged to and paid by Tenant
for the calendar year covered by such audit exceeds five percent (5%) of the actual (as
distinguished from estimated) amount of Tenant’s Proportionate Share of Tenant Costs, Landlord
shall pay up to $4,000.00 of Tenant’s actual out-of-pocket audit and inspection fees (but
specifically excluding any travel and lodging expenses) applicable to the review of Tenant Costs
for said calendar year within twenty (20) days after receipt of Tenant’s invoice therefor. This
paragraph shall not be construed to limit, suspend, or abate Tenant’s obligation to pay Rent when
due, including estimated Tenant Costs. Landlord shall credit any overpayment determined by the
final approved audit report against the next Rent due and owing by Tenant or, if no further Rent is
due, refund such overpayment directly to Tenant within thirty (30) days of determination. Likewise,
Tenant shall pay Landlord any underpayment determined by the final approved audit report within
thirty (30) days of determination. The foregoing obligations shall survive the expiration or
termination of this Lease. If Tenant does not give written notice of its election to audit Tenant
Costs during the Audit Election Period, Tenant Costs for the applicable calendar year shall be
deemed approved for all purposes, and Tenant shall have no further right to review or contest the
same. The right to audit granted hereunder is personal to the Tenant named in this Amendment and to
any assignee under a Permitted Transfer (defined below) and shall not be available to any subtenant
under a sublease of the Premises.

6. Parking. As of the Third Expansion Space Commencement Date, (a) the first sentence
of Paragraph 8C of the Lease and any other reference in the Lease to a parking ratio and/or the
number of parking spaces Tenant may use shall no longer be applicable and (b) subject to all
reasonable rules and regulations promulgated by Landlord from time to time and uniformly applied
by Landlord to all tenants of the Building and/or others utilizing the surface parking lot or the
parking area beneath the Building, Tenant, and its employees, customers, licensees

7

 

invitees and/or any other entity or person authorized by Tenant shall have the non-exclusive right
to use, free of charge, 4.65 parking spaces per 1,000 rentable square feet in the Premises now or
at any point in the future during the Term of the Lease. Based on Tenant’s occupancy of 37,356
rentable square feet, Tenant is entitled to use one hundred seventy-four (174) parking spaces. All
such parking spaces shall be located in the surface parking lot within the Project, except for
thirty (30) spaces, which shall be reserved in the parking area beneath the Building (the “Covered
Parking Area”). The thirty (30) spaces shall be marked as reserved for Tenant in a mutually
acceptable manner at Landlord’s cost and shall be in the locations specified on the attached
Exhibit D, which is incorporated into this Amendment for all purposes. In the event the
ratio specified above does not provide Tenant with fifty percent (50%) of the unreserved and fifty
percent (50%) of the reserved parking spaces for the Building in the parking areas within the
Project, and Tenant continues to occupy at least forty-five percent (45%) of the Project, the ratio
shall be adjusted to provide Tenant with fifty percent (50%) of such spaces. Notwithstanding
anything in the foregoing to the contrary, subject to the terms and conditions specified below in
this Paragraph 6, Landlord has an ongoing right to convert the Covered Parking Area into leasable
space and construct a separate covered parking area within the Project (the “New Covered Parking
Area”). In the event Landlord elects to convert all of the parking spaces in the Covered Parking
Area into leasable space, Landlord shall have the right to do so upon Landlord’s satisfaction of
the following conditions precedent: (i) Landlord completes construction of the New Covered Parking
Area and obtains a certificate of occupancy and/or any other required authorization(s) from the
City of Austin and/or other applicable governmental authority to utilize such area for parking,
(ii) each parking space within the New Covered Parking Area is equal to or greater in size to each
parking space in the Covered Parking Area , (iii) the amount of cover provided for each parking
space in the New Covered Parking Area is comparable to the amount of cover for each space within
the Covered Parking Area, (iv) Tenant has the same number of reserved parking spaces in the New
Covered Parking Area as they have in the Covered Parking Area at the time the relocation of spaces
occurs unless some of the reserved spaces are still located in the Covered Parking Area as provided
for in the following sentence, (v) the number of reserved spaces provided to Tenant in the New
Covered Parking Area shall increase in the event Tenant expands the Premises per the ratio
specified above unless there are still additional spaces in the Covered Parking Area, (vi) the
location of the reserved spaces provided to Tenant in the New Covered Parking Area shall be
mutually acceptable to Landlord and Tenant, (vii) Landlord pays for the cost of signage to
designate the reserved spaces provided to Tenant in the New Covered Parking Area and any other
costs associated with the relocation of Tenant’s reserved spaces from the Covered Parking Area to
the New Covered Parking Area, and (viii) all such spaces are provided free of charge during the
Term of the Lease and any extension(s) thereof. In the event Landlord elects to convert a portion
of the parking spaces in the Covered Parking Area into leasable space, Tenant shall have the right
to use all remaining reserved spaces in the Covered Parking Area up to thirty (30) spaces or the
increased number of spaces Tenant is entitled to utilize in the event of an expansion of the
Premises.

7. Surrender of Premises. At the expiration or earlier termination of the Lease or Tenant’s
right of possession, Tenant shall remove Tenant’s Removable Property (defined below) from the
Premises, and quit and surrender the Premises to Landlord, broom clean, and in good order,
condition and repair, ordinary wear and tear and damage by casualty or condemnation excepted. As
used herein, the term “Tenant’s Removable Property” shall mean:(a) any improvements, materials and
equipment used in connection with Tenant’s laboratories which are not affixed to a

8

 

portion of the Leased Premises and/or the Project; (b) any improvements to the Premises
(collectively, “Leasehold Improvements”) that are installed by or for the benefit of Tenant, which
are of a nature that, in Landlord’s reasonable judgment (based on competitive pricing from a
minimum of two general contractors and related subcontractors, which pricing shall be made
available to Tenant at the same time such pricing is provided to Landlord) would require removal
and repair costs that are materially in excess of the removal and repair costs associated with
improvements typically found in other office tenant spaces in comparable buildings in close
proximity to the Project (exclusive of the items described in (a) and (c) of this Paragraph 7)
(“Special Installations”); and (c) Tenant’s personal property. Notwithstanding the foregoing,
Landlord may, in Landlord’s sole discretion and at no cost to Landlord, require Tenant to leave any
of its Special Installations in the Premises by providing Tenant with written notice (the “Special
Installations Notice”) on or before May 1, 2015, stating that Landlord has elected to require
Tenant to leave all or some of its Special Installations. If Landlord elects for a portion of
Tenant’s Special Installations to remain, the Special Installations Notice shall include a detailed
description and itemization of which Special Installations Landlord elects to have Tenant leave. If
Landlord does not provide Tenant with the Special Installations Notice on or before May 1, 2015,
Tenant shall not be obligated to leave any of its Special Installations in the Premises. If Tenant
fails to remove any of Tenant’s Removable Property (other than Special Installations which Landlord
has designated to remain in the Premises) within two (2) business days after the expiration date of
the term of the Lease or early termination of the Lease or of Tenant’s right to possession,
Landlord, at Tenant’s sole cost and expense, shall be entitled (but not obligated) to remove and
store Tenant’s Removable Property. Landlord shall not be responsible for the value, preservation or
safekeeping of Tenant’s Removable Property. Tenant shall pay Landlord, upon demand, the reasonable
expenses and reasonable storage charges incurred for Tenant’s Removable Property. To the fullest
extent permitted by applicable law, any unused portion of the Security Deposit may be applied to
offset Landlord’s costs set forth in the preceding sentence. In addition, if Tenant fails to remove
Tenant’s Removable Property from the Premises or storage, as the case may be, within thirty (30)
days after written notice, Landlord may deem all or any part of Tenant’s Removable Property to be
abandoned, and title to Tenant’s Removable Property (except with respect to any Hazardous
Substances) shall be deemed to be immediately vested in Landlord, subject to any written agreement
between Landlord and a lender for Tenant whereby Landlord has subordinated its rights to such
lender to Tenant’s Removable Property and the lender then has a valid lien on Tenant’s Removable
Property. Except for Special Installations designated by Landlord to remain in the Premises,
Tenant’s Removable Property shall be removed by Tenant within two (2) business days after the
expiration date of the term of the Lease or early termination of the Lease or of Tenant’s right to
possession; provided that upon Landlord’s prior written consent (which must be requested by Tenant
at least thirty (30) days in advance of the expiration of the term of the Lease and which shall not
be unreasonably withheld), Tenant may remain in the Premises for up to five (5) days after the
expiration of the term of the Lease for the sole purpose of removing Tenant’s Removable Property.
Tenant’s possession of the Premises for such purpose shall be subject to all of the terms and
conditions of this Lease, including t
he obligation to pay Base Rent and Tenant’s Proportionate
Share of Tenant Costs on a per diem basis at the rate in effect for the last month of the term of
the Lease. In the event the Lease is terminated prior to the Expiration Date, Tenant’s Removable
Property (except for Special Installations designated by Landlord to remain in the

9

 

Premises) shall be removed by Tenant on or before such earlier date of termination. Tenant shall
repair damage caused by the installation or removal of Tenant’s Removable Property.

8. Assignment. In addition to Tenant’s rights under the Lease, as of the Effective Date of
this Amendment, Tenant may assign its entire interest under the Lease to its Affiliate or Tenant’s
Successor (as defined herein) without the consent of Landlord, provided that at all times during
the twelve (12) month period following any such assignment, the aggregate net worth of the
assigning party and the assignee shall be, at a minimum, equal to the aggregate amount of the Base
Rent and Tenant’s Proportionate Share of Tenant Costs (based on the estimates of such costs
prepared in accordance with the Lease) that are scheduled to become due under the Lease during such
twelve (12) month period. Tenant shall provide Landlord with written notice of any such assignment
no later than thirty (30) days following the effective date of such assignment.

9. Termination Option. Tenant shall have the option to terminate the Lease with respect to
the Third Expansion Space as of 11:59 p.m. on June 30, 2013 (the “Termination Date”), provided
Tenant gives written notice thereof to Landlord on or before September 30, 2012, and provided that
no Event of Default remains uncured under the Lease at the time of the giving of such notice or on
the Termination Date. Notwithstanding anything to the contrary contained in the immediately
preceding sentence, in the event an Event of Default remains uncured under the Lease at the time
of the giving of such notice or on the Termination Date, Landlord shall notify Tenant in writing
of such default, and the Termination Date shall be extended by an amount of time equal to the cure
period applicable to the default as provided for in Paragraph 19 of the Lease, as modified by
Paragraph 21 of this Amendment. In the event Tenant fails to cure such Event of Default during the
applicable cure period specified in the preceding sentence, this termination option shall be null
and void and the Lease shall continue in full force and effect as if Tenant had not delivered the
Termination Notice to Landlord. In the event Tenant cures such Event of Default during the
applicable cure period specified above, the Lease shall terminate on the Termination Date, as
extended pursuant to the provisions of this Paragraph 9. Additionally, Tenant’s right to terminate
hereunder is conditioned upon the payment in full by Tenant, simultaneously with the delivery of
the notice of termination, of a termination payment in the amount of $269,453.69 (the “Termination
Payment”). After Landlord’s receipt of the full Termination Payment, and Landlord’s receipt of all
Rent due hereunder through and including the Termination Date (as it may be extended as set forth
in this Paragraph 9), as and when such Rent was due, neither party shall have any rights,
liabilities or obligations under the Lease for the period accruing after the Termination Date,
except those which, by the provisions of the Lease, expressly survive the termination of the
Lease.

10. Signage. During the term of the Lease, Tenant shall have rights to the signage
described in (a) – (c) below (collectively, the “Signage”):

     (a) Building Signage. Tenant shall have the right to install and maintain, at Tenant’s sole
expense, one exterior sign identifying the name of either Tenant, an Affiliate (as defined below)
of Tenant or Tenant’s Successor on the south elevation of the Building (the “Building Signage”) in
the approximate location shown on the attached Exhibit E which is incorporated into this
Amendment for all purposes, so long as the party named on the Building Signage occupies all or a
portion of the Premises; provided, however, this right shall terminate if, at any time after the
Third Expansion Space Commencement Date, the Premises is less than 25,000

10

 

rentable square feet or Tenant, an Affiliate of Tenant or Tenant’s Successor no longer occupy at
least 25,000 rentable square feet in the Project. If the right to Building Signage terminates, or
following the expiration or termination of the Lease, Landlord may cause the Building Signage to
be removed, at Tenant’s sole cost and expense. Tenant acknowledges that there is currently no
signage identifying a tenant or an occupant on the Building and that Landlord makes no
representation as to whether such signage is permitted by applicable law. Tenant shall be solely
responsible, at Tenant’s cost, for investigating whether the Building Signage is permitted by
applicable law and for obtaining all required permits and approval from all applicable
governmental authorities in connection with such signage.

     (b) Monument Signage. Following the expiration of the lease between Landlord and Ultra
Electronics, Landlord shall, at Tenant’s sole cost and expense, relocate the panel identifying
Tenant’s name on the existing monument sign to the top position on such monument sign.

     (c) Additional Signage. Tenant shall have the right to Tenant’s name on any additional
multi-tenant signage Landlord adds to the Project outside of the Building.

The term “Affiliate” means any person or entity controlling, controlled by or under common control
with Tenant or Landlord, as applicable. The term “Tenant’s Successor” means a successor to Tenant
by purchase, merger, consolidation or reorganization.

The rights to Signage granted herein are personal to the specific party originally identified as
the “Tenant” under the Lease and may not be transferred, shared or assigned in whole or in part to
any assignee, subtenant or other tenant in the Project, except as otherwise described herein. As of
the Third Expansion Space Commencement Date, with respect to the Monument Signage and Additional
Signage, Tenant shall be entitled to an amount of space on such signage approximately equal to
Tenant’s Proportionate Share (as such amount on the signage is reasonably determined by Landlord),
and Tenant may grant the right to utilize all or a portion of such signage to an Affiliate of
Tenant, Tenant’s Successor or a subtenant of all or a portion of the Premises, so long as the party
granted the right and named on such signage occupies all or a portion of the Premises and subject
to the following paragraph.

The location, size, material, construction, font, color, lighting (including, but not limited to,
the intensity thereof) and design of the Signage described in this Paragraph 10 shall be subject
to (i) the prior written approval of Landlord, which shall not be unreasonably withheld,
conditioned or delayed, and (ii) compliance with applicable law and any recorded restrictive
covenants applicable to the Project.

11. Compliance with Law. Landlord shall comply with all laws regarding the use, condition
or occupancy of the portions of the Project that are available for the common use of tenants and
others, as determined by Landlord from time to time (the “Common Areas”), which shall in any event
include areas within the Building such as common corridors, vending areas, lobby areas and, with
respect to multi-tenant floors, restrooms and elevator foyers, and the parking areas within the
Project. In the event such Common Areas do not comply with such laws, following written notice
from an applicable governmental authority of such non-compliance, Landlord

11

 

shall remedy such non-compliance, at no cost to Tenant, except for any amount included in Tenant
Costs pursuant to the terms of the Lease and this Amendment.

12. Non-Disturbance Agreement. Landlord agrees to obtain and deliver to Tenant an executed
version of the Non-Disturbance and Attornment Agreement attached hereto as Exhibit F (the
“NDA”), which is incorporated into this Amendment for all purposes, signed by Landlord and
Landlord’s mortgagee (“Landlord’s Mortgagee”) on or before the later of (a) the date such
Landlord’s Mortgagee gives its consent to this Amendment and (b) fifteen (15) days after this
Amendment is executed by Landlord and Tenant, and Tenant shall, within ten (10) business days of
delivery of such signed NDA, execute the NDA and deliver the fully executed NDA to Landlord.
Landlord’s Mortgagee charges a fee of $1,500 for such an agreement, and Tenant agrees to promptly
reimburse Landlord for Landlord’s payment of the fee. In addition, the Lease shall not be
subordinate to any mortgage or ground lease affecting the Project and/or the Premises executed
after the Effective Date of this Amendment unless Tenant and the holder of any such mortgage or the
ground lessor under any such ground lease execute a mutually agreeable subordination and
non-disturbance agreement. Landlord agrees to use commercially reasonable efforts to obtain from
any future holder of any mortgage or ground lease its then-current form of subordination and
non-disturbance agreement for the review and consideration of Tenant.

13. Additional HVAC Units. As a part of the Tenant Work, Tenant shall install additional
heating, ventilation and air conditioning units (the “Additional HVAC Units”) in the location(s)
determined in accordance with the Work Letter. Such Additional HVAC Units shall solely serve the
Premises and shall be connected to either the existing submeter or another submeter(s) to be
installed by Tenant, at Tenant’s sole discretion and at Tenant’s cost which cost may be paid for
out of the Reimbursement Allowance as defined in Paragraph 2 of Exhibit B of this
Amendment, to measure the electrical consumption of the Additional HVAC Units. Notwithstanding
anything contained in the Lease to the contrary, but in addition to Tenant’s obligation to pay
Tenant’s Proportionate Share of Tenant Costs, Tenant shall pay Landlord for the direct cost only of
the electricity consumed by the Additional HVAC Units and/or any other HVAC units serving the
Premises exclusively and which are connected to either the existing submeter or another submeter(s)
(the “Separate HVAC Units”). Monthly, on or about the fifteenth (15th) day of each
month, during the term of the Lease and any extensions thereof, Landlord shall read the submeter(s)
to determine the amount of the electricity consumed by the Separate HVAC Units since the last
reading of the submeter(s) and then compute the cost of the electricity consumed by multiplying the
cost per kilowatt hour charged by the electric utility provider to Landlord for that period by the
amount of kilowatt hours consumed. On or before the twentieth (20th) day of each month
during the term and any extensions thereof, the Landlord shall invoice the Tenant for the cost of
the electricity consumed by the Separate HVAC Units and such amount shall be due and payable on the
later of (i) the first (1st) day of the month after Tenant’s receipt of the invoice from
Landlord, or (ii) fifteen (15) days after the invoice was received by the Tenant, if the Tenant
received it after the twentieth (20th) day of the month. Notwithstanding anything in the
Lease to the contrary, Tenant shall be responsible for the reasonable maintenance, repair, upkeep
and replacement of the Separate HVAC Units with all such maintenance, repair, upkeep and
replacement being performed at Tenant’s sole cost and expense. In connection with Tenant’s
obligations in the foregoing sentence, Tenant shall replace the air filter(s) for each of the units
as required to keep the filter relatively clean based on typical

12

 

industry standards for similar sized units in a comparable commercial application in comparable
office buildings in close proximity to the Building. In the event that one or more of the Additional
HVAC Units is installed on the roof of the Building, as more particularly described in the Work
Letter, and Tenant needs access to the roof to fulfill its obligations under this Paragraph 13,
Tenant shall provide Landlord with twenty-four (24) hours advance notice, where practical, and in
all events, Landlord may accompany Tenant, its agents, contractors or employees on to the roof.
Landlord agrees to provide such access in a timely manner upon Tenant’s request. Tenant may be
required to compensate Landlord for reasonable overtime labor expenses incurred by Landlord in
providing a representative to accompany Tenant or provide Tenant with access to the Additional HVAC
Units if such accompaniment is needed or access is provided after normal business hours (as
described in Paragraph 4(b) above) at Tenant’s request. In the event that Landlord determines that
any maintenance, repair or replacement of any items on the roof of the Building needs to be
performed which will result in a bona fide requirement that one or more of the Additional HVAC
Units located on the roof will need to be temporarily moved, Landlord shall provide Tenant with no
less than thirty (30) days prior written notice (except in the event of an emergency) of such
maintenance, repair or replacement, and Tenant shall temporarily move the Additional HVAC Unit(s),
at Tenant’s sole cost and expense, until any such maintenance, repair and replacement has been
performed. Landlord agrees to complete any such maintenance, repair and replacement in a
commercially reasonable time frame so as to minimize the amount of time the unit(s) must be
temporarily relocated. Except to the extent of Landlord’s gross negligence or willful misconduct,
Landlord shall not be liable for any loss or damage that may be incurred by Tenant in connection
with Tenant’s moving the Additional HVAC Units.

14. Option to Extend. Tenant shall have the option to extend the term of the Lease as set
forth in the Option to Extend in the attached Rider No. 1, which is incorporated into this
Amendment for all purposes.

15. Right of First Offer. Tenant shall have a preferential right to lease certain space in
the Building as set forth in the Right of First Offer in the attached Rider No. 2, which
is incorporated into this Amendment for all purposes.

16. Must Take Space. Tenant shall have the obligation to lease the “Must Take Space” as
set forth in the attached Rider No. 3, which is incorporated into this Amendment for all
purposes.

17. OFAC List Representation. Tenant hereby represents and warrants to Landlord that
neither Tenant nor any of its officers, directors, shareholders, partners, members or affiliates is
or will be an entity or person: (a) that is listed in the annex to, or is otherwise subject to the
provisions of, Executive Order 13224 issued on September 24, 2001 (“EO 13224”); (b) whose name
appears on the United States Treasury Department’s Office of Foreign Assets Control (“OFAC”) most
current list of “Specifically Designated National and Blocked Persons” (which list may be published
from time to time in various mediums including, but not limited to, the OFAC website,
http:www.treas.gov/ofac/t11sdn.pdf); (c) who commits, threatens to commit or supports “terrorism,”
as that term is defined in EO 13224; or (d) who is otherwise affiliated with any entity or person
listed above.

13

 

18. Consent. This Amendment is subject to, and conditioned upon, any required consent or
approval being unconditionally granted by Landlord’s Mortgagee. If any such consent shall be
denied, or granted subject to an unacceptable condition, this Amendment shall be null and void and
the Lease shall remain unchanged and in full force and effect. Landlord shall provide Tenant with
written notice within fifteen (15) days after this Amendment is executed by Landlord and Tenant
specifying that the Landlord’s Mortgagee has or has not provided the unconditional consent or
approval specified in this Paragraph 18. In the event (i) the Landlord’s Mortgagee has not provided
such approval or consent within the fifteen (15) day period described in the previous sentence,
and/or (ii) Landlord has not obtained and delivered to Tenant an executed version of the NDA signed
by Landlord and Landlord’s Mortgagee within such fifteen (15) day period and/or (iii) Landlord has
not provided the notice required in this Paragraph 18 within such fifteen (15) day period, Tenant
may terminate this Amendment within five (5) days after the fifteen (15) day period has elapsed,
but prior to Landlord’s Mortgagee providing its approval or consent and Landlord delivering (a) an
executed version of the NDA signed by Landlord and Landlord’s Mortgagee, and (b) the notice
required in this Paragraph 18, and thereafter neither party shall have any rights, liabilities or
obligations under this Amendment.

19. Broker. Tenant represents and warrants that it has not been represented by any broker
or agent in connection with the execution of this Amendment, other than Oxford Alliance Services
LLC (“Oxford”). Tenant shall indemnify and hold harmless Landlord and its designated property
management, construction and marketing firms, and their respective partners, members, affiliates
and subsidiaries, and all of their respective officers, directors, shareholders, employees,
servants, partners, members, representatives, insurers and agents from and against all claims
(including costs of defense and investigation) of any broker or agent or similar party other than
Oxford claiming by, through or under Tenant a leasing commission in connection with this
Amendment. Landlord acknowledges its obligation to pay a commission to Oxford pursuant to the
terms of a separate written agreement between Landlord and Oxford, and Landlord agrees that Tenant
has no obligation to pay a commission pursuant to such agreement since Tenant is not a party to
such agreement.

20. Time of the Essence. Time is of the essence with respect to Tenant’s and Landlord’s
execution and delivery of this Amendment to the other party. If Tenant fails to execute and deliver
a signed copy of this Amendment to Landlord or Greg Johnson, with Transwestern, by 5:00 p.m. in
Austin, Texas on March ___, 2010, this Amendment shall be deemed null and void and shall have no
force or effect, unless otherwise agreed in writing by Landlord. Landlord’s acceptance, execution
and return of this Amendment by March ___, 2010, shall constitute Landlord’s agreement to waive
Tenant’s failure to meet such deadline. In the event Landlord has not executed and returned this
Amendment to Tenant or Rick Whiteley, with Oxford, by 5:00 p.m. in Austin, Texas on March ___,
2010, this Amendment shall be deemed null and void and shall have no force or effect.

21. Events of Default. Paragraph 19E on page 11 of the Lease is hereby deleted in its
entirety, and replaced with the following:

“E. Tenant shall fail to comply with any term, provision or covenant of this Lease
(other than those listed above in this Paragraph) and shall not cure such

14

 

failure within twenty (20) days after written notice thereof from Landlord;
provided however, that if such failure is not curable by Tenant within such twenty
(20) day period, then Tenant shall have such additional time to cure as may be
commercially reasonable so long as Tenant commences to cure in an expeditious
manner within such twenty (20) day period and thereafter diligently and
continuously pursues completion of the cure.”

22. Storage Space. Subject to all terms and conditions of the Lease, except as otherwise
set forth in this Paragraph 22, during the Second Extension Period, Tenant shall have the right to
use the storage space currently utilized by Ultra Electronics and located in the parking area
beneath the Building (the “Storage Space”). Tenant shall not be obligated to pay Base Rent or
Tenant’s Proportionate Share of Tenants Costs for the Storage Space. Tenant shall use the Storage
Space for storage of personal property only and for no other purpose. Tenant agrees to keep the
Storage Space clean and orderly and not to use the Storage Space for the purpose of storing refuse,
trash, garbage and the like. In addition, Tenant shall not store any flammable materials,
explosives, or any other inherently dangerous material in the Storage Space. Tenant shall accept
possession of the Storage Space in “as is” condition and Landlord shall have no obligation
whatsoever to furnish, render, or supply any money, work, labor, material, fixture, decoration, or
equipment with respect to the Storage Space. Except for the electrical supply for the lights in the
Storage Space, Tenant acknowledges and agrees that there shall be no services whatsoever provided
to the Storage Space.

23. Miscellaneous. This Amendment shall become effective only upon full execution and
delivery of this Amendment by Landlord and Tenant. This Amendment contains the parties’ entire
agreement regarding the subject matter covered by this Amendment, and supersedes all prior
correspondence, negotiations, and agreements, if any, whether oral or written, between the parties
concerning such subject matter. There are no contemporaneous oral agreements, and there are no
representations or warranties between the parties not contained in this Amendment. Except as
modified by this Amendment, the terms and provisions of the Lease shall remain in full force and
effect, and the Lease, as modified by this Amendment, shall be binding upon and shall inure to the
benefit of the parties hereto, their successors and permitted assigns.

[Remainder of page intentionally left blank.]

15

 

LANDLORD AND TENANT enter into this Amendment as of the Effective Date.

	 	 	 	 	 
	 	LANDLORD:

CFO2 AUSTIN, LLC,

a Delaware limited liability company

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	TENANT:

RULES-BASED MEDICINE, INC.,

a Delaware corporation

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

16

 

EXHIBIT A 

THIRD EXPANSION SPACE

A-i

 

EXHIBIT B 

WORK LETTER

     This Work Letter is attached as an Exhibit to that certain Fourth Amendment to Lease Agreement
(the “Amendment”) between CFO2 Austin, LLC, as Landlord, and Rules-Based Medicine, Inc., as Tenant,
that amends that certain Lease Agreement dated March 18, 2003 (as amended, the “Lease”) and
relating to the lease by Landlord to Tenant of that certain Third Expansion Space in Stonecreek
Park. Unless otherwise specified, all capitalized terms used in this Work Letter shall have the
same meanings as in the Lease as amended by the Amendment. In the event of any conflict between the
Lease and this Work Letter, the latter shall control.

1. Construction. Tenant agrees to have its contractors and subcontractors construct
leasehold improvements (the “Tenant Work”) in a good and workmanlike manner in and upon the Current
Premises and/or the Third Expansion Space and/or the Must Take Space (as defined herein), at
Tenant’s sole cost and expense, in accordance with the following provisions and in accordance with
the floor plans attached as Schedule 1 to this Exhibit B (the “Floor Plans”), which
have been approved by Landlord. Tenant may make changes to the Floor Plans without having to obtain
Landlord’s approval, so long as any such changes would not cause Tenant’s use of the Current
Premises and/or the Third Expansion Space and/or the Must Take Space to violate the terms and
conditions of Paragraph 12 of the Lease or such changes would not violate any other terms and
conditions of the Lease. Tenant shall submit to Landlord for Landlord’s approval, which shall not
be unreasonably withheld, conditioned or delayed in accordance with the following sentence,
complete plans and specifications for the construction of the Tenant Work (“Tenant’s Plans”).
Within three (3) business days after receipt of Tenant’s Plans, Landlord shall review and either
approve or disapprove Tenant’s Plans, provided that (i) Landlord’s approval shall not be
unreasonably withheld, conditioned or delayed and (ii) Landlord’s approval/disapproval rights shall
be limited to items affecting (A) any structural elements of the Building, (B) any Building systems
located outside of the Premises, (C) any components of the fire and life safety systems of the
Building and (D) the exterior of the Building, including the placement of any equipment outside of
the Premises, such as the Additional HVAC Units. If Landlord disapproves Tenant’s Plans, or any
portion thereof, Landlord shall notify Tenant thereof and of the revisions Landlord requires before
Landlord will approve Tenant’s Plans. In a timely manner following receipt of Landlord’s notice,
Tenant shall submit to Landlord, for Landlord’s review and approval, plans and specifications
incorporating the required revisions. The final plans and specifications approved by Landlord are
hereinafter referred to as the “Approved Construction Documents”. Tenant may make changes to the
Approved Construction Documents without having to obtain Landlord’s approval, so long as any such
changes would not cause Tenant’s use of the Premises and/or the Third Expansion Space and/or the
Must Take Space to violate the terms and conditions of Paragraph 12 of the Lease or such changes
would not violate any other terms and conditions of the Lease. In the event Landlord’s approval is
required to changes to the Approved Construction Documents, (i) Landlord’s approval shall not be
unreasonably withheld, conditioned or delayed and (ii) Landlord’s approval/disapproval rights shall
be limited to items affecting (A) any structural elements of the Building, (B) any Building systems
located outside of the Premises, (C) any components of the fire and life safety systems of the
Building and (D) the exterior of the Building, including the placement of any equipment outside of
the Premises, such as the

B-i

 

Additional HVAC Units. With respect to the installation and location of the Additional HVAC Units,
Landlord and Tenant shall make good faiths efforts to find a suitable location(s) on the ground
outside the Building to install the Additional HVAC Units. However, if any or all of the Additional
HVAC Units cannot be installed in such location(s), the Additional HVAC Units shall be installed on
the roof of the Building in location(s) mutually agreed upon by Landlord and Tenant.
Notwithstanding anything in the Lease or this Amendment to the contrary, in the event any or all of
Additional HVAC Units are required to be installed on the roof, any work which is required to
modify the roof shall be performed by a roofing contractor selected by Landlord, in Landlord’s sole
discretion, provided the cost charged by such contractor is commercially reasonable based on the
cost which would be charged by a similarly qualified contractor. Once the Tenant’s Plans and
Approved Construction Documents have been approved in accordance with this Paragraph, the
authorized representatives of Landlord and Tenant shall each sign Tenant’s Plans and Approved
Construction Documents to signify their respective approval of each set of documents. Tenant will
employ experienced, contractors and licensed subcontractors, and architects, engineers and other
consultants, approved by Landlord except as otherwise provided herein, to design and construct the
Tenant Work and will require in the applicable contracts that such parties (a) carry insurance in
such amounts and types of coverages as are reasonably required by Landlord, and (b) design and
construct the Tenant Work in a good and workmanlike manner and in compliance with applicable law,
excepting where such compliance is Landlord’s obligation under the terms of the Lease and/or this
Amendment. Landlord does hereby approves Trimbuilt Construction, Drolette Construction, Spaw
Maxwell and Burt Watts as contractors to perform the Tenant Work, so long as each such contractors
agrees to (i) comply with Landlord’s responsible contractor policy attached hereto as Schedule
2, which is incorporated into this Exhibit for all purposes, and (ii) carry the type and amount
of liability insurance reasonably required by Landlord, which shall include coverage sufficient to
cover work in the Premises, Third Expansion Space and the Must Take Space performed by the
subcontractors. In addition, Landlord hereby approves any licensed subcontractors that such
contractors may utilize to perform the Tenant Work. Unless otherwise agreed to in writing by
Landlord and Tenant, all work involved in the construction and installation of the Tenant Work
shall be carried out by Tenant’s contractor under the sole direction of Tenant, in compliance with
all reasonable Building rules and regulations and in such a manner so as not to unreasonably
interfere with or disturb the operations, business, use and enjoyment of the Project by other
tenants in the Building or the structural calculations for imposed loads. Tenant shall obtain from
its contractors and provide to Landlord a list of all subcontractors providing labor or materials
in connection with any portion of the Tenant Work prior to commencement of the Tenant Work. Tenant
warrants that the design, construction and installation of the Tenant Work shall conform to the
requirements of all applicable law, including building, plumbing and electrical codes and the
requirements of any authority having jurisdiction over, or with respect to, such Tenant Work.

2. Costs. Subject to the terms and conditions of this Paragraph 2, Landlord will provide
Tenant with an allowance in the amount of $485,628.00 (the “Reimbursement Allowance”) to be
applied towards the cost of constructing the Tenant Work, any architectural and engineering fees
related to such work, a construction management fee, if any, paid by Tenant to its construction
manager, and all other costs related to such work, including, but not limited to, application and
permit fees and permit expediter fee, and all of the items specified in Paragraph 2A below.

B-ii

 

     A. Landlord’s obligation to reimburse Tenant for the construction of the Tenant Work shall be:
(ii) limited to $485,628.00 which is based on the following: $13.00 multiplied by the rentable
square footage of the Premises after the Must-Take Space (as defined herein) is added to the
Premises (i.e., $13.00 x 37,356 = $485,628.00); and (iii) conditioned upon Landlord’s receipt of
written notice (which notice shall be accompanied by invoices and documentation set forth below)
from Tenant that the applicable portion of the Tenant Work covered by such invoices and
documentation has been completed and accepted by Tenant. The cost of (a) all space planning,
design, consulting or review services and construction drawings, (b) purchasing and installing all
building equipment for the Current Premises and/or Third Expansion Space (including any submeters
and other above building standard electrical equipment approved by Landlord), (c) required
metering, re-circuiting or re-wiring for metering, equipment rental, engineering design services,
consulting services, studies, construction services, cost of billing and collections, (d) materials
and labor, and (e) an asbestos survey of the Current Premises and/or Third Expansion Space if
required by applicable law, shall all be included in the cost of the Tenant Work and may be paid
out of the Reimbursement Allowance, to the extent sufficient funds are available for such purpose.
All improvements which are currently in the Premises and/or the Third Expansion Space and/or the
Must Take Space may be utilized by Tenant and/or their contractor(s) and/or subcontractors at
Tenant’s sole discretion to complete the Tenant Work and any cost related to such utilization of
the improvements shall not be applied against the Reimbursement Allowance. Any reimbursement
obligation of Landlord under this Work Letter shall be applied solely to the purposes specified
above on or before December 31, 2010. Any portion of the Reimbursement Allowance not used or
requested by Tenant for such use by December 31, 2010 shall be applied as a credit against Base
Rent and Tenant’s Proportionate Share of Tenant Costs due on or after January 1, 2011, and
continuing thereafter until the portion of the Reimbursement Allowance not used has been fully
credited to Tenant.

     B. Landlord shall make payments of the Reimbursement Allowance to Tenant within twenty (20)
days following Landlord’s receipt of (i) copies of invoices from any contractor and or vendor for
costs incurred by Tenant in constructing any portion of the Tenant Work; (ii) evidence that Tenant
has paid the invoices for such costs; and (iii) commercially reasonable lien waivers from any
contractor or supplier who has constructed or supplied materials for the Tenant Work. If the costs
incurred by Tenant in constructing the Tenant Work exceed the Reimbursement Allowance, then Tenant
shall pay all such excess costs and Tenant agrees to keep the Premises and the Property free from
any liens arising out of the non-payment of such costs.

3. Electrical Design Capacity. The following parameters constitute building standard
electrical design capacity: (i) the total connected electrical load of all electrical equipment
serving the Premises (excluding Building mechanical systems and other Building equipment) shall
not exceed an average of approximately 7.0 watts multiplied by the usable square footage of the
Premises, which is hereby deemed to be 34,380 usable square feet, delivered through the electrical
riser to the electrical room(s) on the floor where the Premises are located; (ii) in addition to
the approximate 7.0 watts stated above, the connected electrical load for lighting shall not
exceed an average of approximately 3.0 watts multiplied by the usable square footage of the
Premises; (iii) emergency power shall be limited to egress lighting only and at Landlord’s option
shall be provided by Tenant’s battery backup fixtures or Landlord’s emergency power system; and
(iv) no electrical equipment shall exceed the safe and lawful capacity of the existing

B-iii

 

electrical circuit(s) and facilities serving the Premises which capacity is hereby deemed to be no
less than 7.0 watts multiplied by the usable square footage of the Premises. Any requirements,
services or equipment in excess or contravention of the foregoing parameters (or any combination
thereof) shall constitute above building standard electrical services subject to Landlord’s
approval and Tenant’s compliance with the other applicable provisions of the Lease. However, the
cost of purchasing and installing any above building standard electrical equipment approved by
Landlord (including submeters) shall be paid at Tenant’s expense from the Reimbursement Allowance
or out-of-pocket if said allowance has been fully utilized by Tenant.

4. ADA Compliance. Tenant shall, at its expense from the Reimbursement Allowance or
out-of-pocket if said allowance has been fully utilized by Tenant, be responsible for compliance in
the Premises with the Americans with Disabilities Act and any other law pertaining to disabilities
and architectural barriers (collectively, the “ADA”) for any new installations or improvements
which occur as part of the Tenant Work, but Landlord shall, at its expense, correct any existing
condition in the Third Expansion Space and/or Must Take Space which does not comply with ADA as of
the Effective Date of this Amendment. Following Landlord’s receipt of written notice from an
applicable governmental authority that all or a portion of (i) the Third Expansion Space,
including, but not limited to, the existing men’s and women’s lavatories/restrooms and shower
stalls and facilities, (ii) the Must Take Space and/or (iii) the existing men’s and women’s
lavatories/restrooms in the Premises does not comply with the ADA, as described in the previous
sentence, Landlord shall commence performing the improvements or other work necessary and shall
thereafter diligently pursue the completion of such improvements or work. Landlord shall use
commercially reasonable efforts to bring any such condition(s) into compliance with the ADA on or
before the Third Expansion Commencement Date. Landlord shall not be responsible for determining
whether Tenant is a public accommodation under ADA or whether the Approved Construction Documents
comply with ADA requirements. Such determinations, if desired by Tenant, shall be the sole
responsibility of Tenant. Landlord’s approval of the Approved Construction Documents shall not be
deemed a statement of compliance with applicable law, nor of the accuracy, adequacy,
appropriateness, functionality or quality of the improvements to be made according to the Approved
Construction Documents.

5. Landlord’s Oversight and Coordination. Construction of the Tenant Work shall be subject
to oversight and coordination by Landlord pursuant to this Paragraph as well as Paragraph 4(b) of
this Amendment, but such oversight and coordination shall not subject Landlord to any liability to
Tenant, Tenant’s contractors or any other person. Landlord has the right to inspect construction of
the Tenant Work from time to time. Landlord or any party related thereto shall not receive any fee
from Tenant for Landlord’s oversight and coordination of the construction of the Tenant Work.

6. Assumption of Risk and Waiver. Tenant hereby assumes any and all risks involved with
respect to the Tenant Work and hereby releases and discharges all Landlord Parties from any and all
liability or loss, damage or injury suffered or incurred by Tenant or third parties in any way
arising out of or in connection with the Tenant Work.

B-iv

 

Schedule No. 1 to Exhibit B 

FLOOR PLANS

Schedule No. 1 to Exhibit B-i

 

Schedule No. 1 to Exhibit B-ii

 

Schedule No. 2 to Exhibit B 

CONTRACTOR POLICY

CERTIFICATION
OF RESPONSIBLE CONTRACTOR STATUS

  GENERAL INFORMATION

 

  Company Name

 

  Address

 

	 	 	 	 	 

	  City

	 	State
	 	Zip Code

 

	 	 	 

	  Telephone Number (     )

	 	Fax Number (     )

 

  Ownership Structure (Please check one)

	 	 	 	 	 	 	 	 	 

	  o Sole Proprietorship

	 	o Partnership
	 	o Corporation
	 	o Joint Venture
	 	o Other         
                  

 

  Description of Service(s) Provided

 

  Contractor’s License #

 

  RESPONSIBLE
CONTRACTOR STATUS (Refer to definitions on reverse)
 

     Please check one of the following boxes:

	 	1.	 	o Meets all Responsible Contractor requirements
	 
	 	2.	 	o Meets none of the Responsible Contractor requirements
	 
	 	3.	 	o Meets certain of the Responsible Contractor requirements (provide explanation below)

  If
you have checked box 3 above, please provide an explanation below (attach additional pages if
necessary):

	 	 	 

	  Explanation:
	 	 
	 

	 	 

	 
	 	 
	 

	 
	 	 
	 

	 
	 	 
	 

	 
	 	 

  OWNER’S CERTIFICATION OF RESPONSIBLE CONTRACTOR STATUS
 

On behalf of the above-named company, the undersigned certifies that the information and
response provided herein are true, complete and accurate as of this date, and he/she is aware
that any intentionally misrepresented or falsified information may result in disqualification
from future contracting opportunities.

	 	 	 	 	 

	  Signature

	 	Date
	 	 
	 
	 	 	 	 
	 
	 	 
	 	 
	  Name (please print)

	 	Title	 	 
	 
	 	 
	 	 
	 
	 	 	 	 

This form was prepared for use in compliance with the Responsible Contractor Program Policy of the California

State Teachers’ Retirement System (“CalSTRS”).

Any contractor or subcontractor with a minimum contract size of
$25,000 should complete this form.

Schedule No. 2 to Exhibit B-i

 

 

INTRODUCTION: The California State Teachers’ Retirement System (“System”) has a deep interest
in the condition of workers employed by the System and its advisors. The System, through the
Responsible Contracting Policy, supports and encourages fair wages and fair benefits for workers
employed by its contractors and subcontractors, subject to fiduciary principles concerning duties
of loyalty and prudence, both of which further require competitive returns on the System’s real
estate investments. The System endorses small business development, market competition and control
of operating costs. The System supports many of the ideals espoused by labor unions and encourages
participation by labor unions and their signatory contractors in the development and management of
the System’s real estate investments. The System believes that an adequately compensated and
trained worker delivers a higher quality product and service. This policy is intended
to complement and in no manner detract from existing System policy regarding service-disabled
California veteran owned business enterprises.

DEFINITIONS:

Responsible Contractor: A contractor or subcontractor who pays workers a fair wage and a
fair benefit as evidenced by payroll and employee records. “Fair Benefits” are defined as
including, but not limited to, employer paid family health care coverage, pension benefits, and
apprenticeship programs. What constitutes a “fair wage” and “fair benefit” depends on the wages and
benefits paid on comparable real estate projects based upon local market factors, that include the
nature of the project (e.g. residential or commercial, public or private) comparable job or trade
classifications, and the scope and complexity of the services provided.

Schedule No. 2 to Exhibit B-ii

 

 

EXHIBIT C

EXAMPLE GROSS UP CALCULATION

Stonecreek Park

Gross Up Example

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

	2009Reforecast-OPEX 95% GU	 	Gross Up Method:
	 	Utilities	 	Occupied RSF:	 	 	69,463	 
	52010-Electricity	 	Occpancy %:
	 	 	90.32	%	 	Building RSF:	 	 	76,910	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	Total SF:	 	 	76,910	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Building Square Footage:
	 	 	76,910	 	 	 	 	 	 	 	 	 
	 	 	 	 	Gross Up %:
	 	 	95.00	%	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	73,065	 	 	 	 	 	 	 	 	 
	 	 	 	 	Less Occupied RSF:
	 	 	69,463	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Average Vacant SF:
	 	 	3,602	 	 	 	 	 	 	 	 	 
	 	 	 	 	Vacant Space Consumption Rate:
	 	 	20.00	%	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Adjusted
Vacant RSF:
	 	 	720	 	 	 	 	 	 	 	 	 
	 	 	 	 	Plus Occupied RSF:
	 	 	69,463	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Adjusted SF
Consuming Utility:
	 	 	70,183	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Utility Costs:
	 	 	225,535	 	 	 	 	 	 	 	 	 
	 	 	 	 	Adjusted
Occupied Cost PSF:
	 	 	3.214	 	*Utility Costs / Adjusted SF	 	 	 
	 	 	 	 	Less Vacant Cost PSF:
	 	 	0.643	 	*Occ.Cost PSF x Vac.Sp.Cons	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Utility
Occupancy Adj. PSF:
	 	 	2.571	 	 	 	 	 	 	 	 	 
	 	 	 	 	x Average
Vacant SF:
	 	 	3,602	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Utility Occupancy Adjustment:
	 	 	9,259	 	 	 	 	 	 	 	 	 

Exhibit C-i

 

EXHIBIT D 

LOCATION OF RESERVED SPACES UNDER BUILDING

Exhibit D-i

 

EXHIBIT E 

LOCATION OF BUILDING SIGNAGE

The location and size of the Tenant’s sign as shown above are approximate. The final location
and size, among other things, are subject to (i) recommendations by the sign company selected by
Tenant regarding the best location and size for the sign for maximum visibility, and (ii) the
approvals provided for in the Lease.

Exhibit E-i

 

EXHIBIT F

NON-DISTURBANCE AND ATTORNMENT AGREEMENT

Record and return to:

Principal Bank

801 Grand Avenue

Des Moines, IA 50392-1360

ATTN:                     

NON-DISTURBANCE

AND ATTORNMENT AGREEMENT

 

     THIS
AGREEMENT, made and entered into as of the ___ day of March, 2010, by and between
PRINCIPAL BANK, a federal savings bank, with an address for purposes of notice at c/o Principal
Real Estate Investors, LLC, 801 Grand Avenue, Des Moines, Iowa 50392-1450 (hereinafter called
“Lender”) and RULES-BASED MEDICINE, INC., a Delaware corporation, with its principal office at 3300
Duval Road, Suite 110, Austin, Texas 78759 (hereinafter called “Lessee”), and CFO2 AUSTIN, LLC, a
Delaware limited liability company, with its principal office at 100 Waugh, Suite 600, Houston,
Texas 77007;

WITNESSETH:

     WHEREAS, Lessee has by that certain Lease Agreement dated March 18, 2003, as amended by that
certain First Amendment to Lease Agreement dated April 2007, that certain Second Amendment to Lease
Agreement dated September 2, 2008, that certain Third Amendment to Lease Agreement dated September
1, 2009, and that certain Fourth Amendment to Lease Agreement dated March ___, 2010 (the “Fourth
Amendment”) (collectively, hereinafter called the “Lease”), leased from CFO2 Austin, LLC
(hereinafter called “Lessor”), all or part of certain real estate and improvements thereon located
at the building known as Stonecreek Park, and located in Austin, Texas, as more particularly
described in Exhibit A attached hereto (the “Demised Premises”); and

     WHEREAS, Lessor is encumbering (or has previously encumbered) the Demised Premises as
security for a loan (the “Loan”) from Lender to Lessor (the “Mortgage”); and

     WHEREAS, Lessee and Lender have agreed to the following with respect to their mutual rights
and obligations pursuant to the Lease and the Mortgage;

     NOW, THEREFORE, for and in consideration of Ten Dollars ($10.00) paid by each party to the
other and the mutual covenants and agreements herein contained and other good and

Exhibit F-i

 

-ii-

valuable consideration, the receipt whereof is hereby acknowledged, the parties hereto do hereby
covenant and agree as follows:

     (1) In the event of any foreclosure of the Mortgage or any conveyance in lieu of foreclosure,
provided that the Lessee shall not then be in default beyond any grace period under the Lease and
that the Lease shall then be in full force and effect, then Lender shall neither terminate the
Lease nor join Lessee in foreclosure proceedings, nor disturb Lessee’s possession, and the Lease
shall continue in full force and effect as a direct lease between Lessee and Lender. Lender further
agrees not to join Lessee in any foreclosure proceeding except to the extent necessary under
applicable law, but such joinder shall not be in derogation of the rights of Lessee as set forth in
this Agreement.

     (2) After the receipt by Lessee of notice from Lender of any foreclosure of the Mortgage or
any conveyance of the Demised Premises in lieu of foreclosure, Lessee will thereafter attorn to and
recognize Lender or any purchaser at any foreclosure sale or otherwise as its substitute lessor on
the terms and conditions set forth in the Lease.

     (3) Lessee hereby agrees that if Lessee has the right to terminate the Lease or to claim a
partial or total eviction, or to abate or reduce rent due to a Lessor default under the Lease,
Lessee will not exercise such right until it has given written notice to Lender, and Lender has
failed within thirty (30) days after both receipt of such notice, to commence to cure such default
and thereafter diligently prosecute such cure to completion within thirty (30) days of Lender’s
commencement to cure such default.

     (4) Lessee agrees that if Lessee exercises its option to terminate the Lease pursuant to the
terms of the Paragraph 9 of the Fourth Amendment, Lessee will remit any payments made in connection
with such termination directly and immediately to Lender when any such payments are due. Lessor
hereby agrees that such payments shall be held by Lender as additional security for the Loan, and
the funds shall be governed by the terms of that certain Property Reserves Agreement between Lessor
and Lender.

     (5) This Agreement and its terms shall be governed by the laws of the state where the Demised
Premises are located and shall be binding upon and inure to the benefit of Lender and Lessee and
their respective successors and assigns, including, without limitation, any purchaser at any
foreclosure sale or otherwise. This Agreement may not be modified orally or in any manner other
than by an agreement, in writing, signed by the parties.

     (6) This Agreement may be executed in counterparts, each of which shall be deemed to be an
original, and such counterparts when taken together shall constitute but one agreement.

(SIGNATURES ON NEXT PAGE)

Exhibit F-ii

 

 

-iii-

	 	 	IN WITNESS WHEREOF, this Agreement has been fully executed under seal on the day and year
first above written.

	 	 	 	 	 	 	 	 	 

	PRINCIPAL BANK, a federal savings bank	 	 
	 
	 	 	 	 	 	 	 	 
	By:	 	PRINCIPAL REAL ESTATE

INVESTORS, LLC, a Delaware limited liability
company, as attorney-in-fact	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 

	RULES-BASED MEDICINE, INC.,	 	 
	a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	By
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	By
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	CFO2 AUSTIN, LLC,	 	 
	a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	By
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

Exhibit F-iii

 

-iv-

[>Insert Client Notary Form here & below with final version of amendment]>

Exhibit F-iv

 

 

-v-

Tenant – Please insert Notary Form in place of this page.

Exhibit F-v

 

-vi-

Landlord – Please insert Notary Form in place of this page.

Exhibit F-vi

 

 

Exhibit A

Legal Description will be inserted by Lender with final version of amendment.

Exhibit F-vii

 

 

RIDER NO. 1 

OPTION TO EXTEND

A. Renewal Period. Tenant or its Affiliate or a successor to Tenant by purchase, merger,
consolidation or reorganization may, at its option, extend the term of the Lease for all, but not a
portion, of the Premises for one (1) renewal period of sixty (60) months commencing on July 1, 2015
(the “Renewal Period”) by written notice to Landlord (the “Renewal Notice”) given no earlier than
July 1, 2014, nor later than January 31, 2015,, provided that at the time of such notice and at the
commencement of such Renewal Period, (i) Tenant, an Affiliate or Tenant’s Successor remains in
occupancy of the Premises, and (ii) no uncured Event of Default exists under the Lease subject to
the terms in the following sentence. If an uncured Event of Default exists under the Lease as
described in the previous sentence, and Landlord has not exercised either of the remedies provided
to Landlord in Paragraph 20(a) or Paragraph 20(b) of the Lease, Landlord shall provide Tenant with
a second written notice of such Event of Default, unless the original Event of Default was pursuant
to Paragraph 19C or Paragraph 19D of the Lease in which case the above-described notice is not
required, and Tenant shall have the same right to cure such Event of Default as Tenant had when
Tenant was first notified of the Event of Default as provided for in Paragraph 19 of the Lease, as
modified by Paragraph 21 of the Amendment. This Option to Extend shall be void and of no further
force and effect unless, following such second written notice, Tenant cures such Event of Default
within applicable cure period described in the Lease and this Amendment. All terms and conditions
of the Lease shall be the same for the Renewal Period except the Base Rent rate payable during the
Renewal Period shall be at the Market Rental Rate (as defined below) for the Premises. Except as
provided in this Rider No. 1, all terms and conditions of the Lease shall continue to apply
during the Renewal Period, except that Tenant shall have no further Option to Extend the term of
the Lease.

B. Acceptance. Within thirty (30) days of the Renewal Notice, Landlord shall provide written
notice to Tenant of the Market Rental Rate proposed by Landlord (“Landlord’s Rate”) for such
Renewal Period (the “Rental Notice”). Tenant shall accept or reject the Landlord’s Rateby written
notice (the “Tenant’s Notice”) to Landlord given within fifteen (15) days after receipt of the
Rental Notice (the “Renewal Notice Period”). If Tenant delivers the Tenant’s Notice and accepts
the terms set forth in the Rental Notice during the Renewal Notice Period, Tenant shall, within
fifteen (15) days after its receipt of an executable lease amendment from Landlord, execute a said
amendment provided it conforms to the conditions specified herein and incorporates the Landlord’s
Rate into the Lease for the Renewal Period. If Tenant fails to deliver its Tenant’s Notice during
the Renewal Notice Period, then this Option to Extend shall automatically expire and be of no
further force or effect. If Tenant delivers the Tenant’s Notice during the Renewal Notice Period
and rejects the Landlord’s Rate set forth in the Rental Notice, Landlord and Tenant shall endeavor
for a period of thirty (30) days after Landlord’s receipt of Tenant’s Notice (the “Negotiation
Period”) to reach an agreement on the Market Rental Rate for the Renewal Period. If, at the end of
the Negotiation Period, Landlord and Tenant are unable to agree on the Market Rental Rate,
Landlord shall deliver to Tenant written notice within ten (10) days after the end of the
Negotiation Period specifying Landlord’s second proposed Market Rental Rate (the “Landlord’s
Revised Rate”). Tenant shall have a period of ten (10) days after its receipt of Landlord ’s
Revised Rate (the “Tenant’s Decision Period”) to elect to (i) accept the Landlord’s Revised Rate
by written notice (the “Acceptance Notice”) to Landlord or (ii) notify

Rider No. 1-i

 

 

-ii-

Landlord that it has elected to renew the term of the Lease and have the Market Rental Rate
determined in accordance with Paragraph D of this Rider No. 1 (the “Arbitration Notice”).
If Tenant fails to deliver either an Acceptance Notice or an Arbitration Notice within Tenant’s
Decision Period, then Tenant shall be deemed to have accepted Landlord’s Revised Rate. If Tenant
delivers its Acceptance Notice within Tenant’s Decision Period or fails to deliver either an
Acceptance Notice or an Arbitration Notice within Tenant’s Decision Period, Landlord and Tenant
shall, within fifteen (15) days after Tenant’s receipt of an executable lease amendment from
Landlord, execute said amendment provided it conforms to the conditions specified herein and
incorporates the Landlord’s Revised Rate into the Lease for the Renewal Period. In addition, this
Option to Extend shall terminate upon assignment of the Lease or subletting of all or any part of
the Premises, unless such subletting or assignment is to an Affiliate or to Tenant’s Successor.
Furthermore, this Option to Extend shall be voidable at either party’s election if the other party
fails to execute and return the aforementioned lease amendment within the fifteen (15) day period
specified above, so long as the electing party provides the other party with written notice of the
electing party’s election prior to the other party’s execution of such lease amendment.

C. Market Rental Rate. The “Market Rental Rate” shall mean (i) the annual net rental rate
(excluding that portion of the rate associated with operating expenses) per square foot of
rentable floor area then being charged, and (ii) the associated tenant improvement allowance per
square foot of rentable floor area then being given a willing tenant would pay and a willing
landlord would accept and (ii) the associated tenant improvement allowance per square foot of
rentable floor area then being given for a comparable renewal transaction in comparable space and
in comparable buildings not owned by Landlord or any entity related thereto) in close proximity to
the Project as of the commencement date of the applicable term, neither being under any compulsion
to lease and both having reasonable knowledge of the relevant facts, with a reasonable period of
time in which to consummate a transaction. In calculating the Market Rental Rate, all relevant
factors will be taken into account, including the location and quality of the buildings, lease
term, parking charges if any, amenities of the building and/or property, condition of the spaces,
any concessions and allowances commonly being offered by landlords for comparable transactions in
the buildings, the time the particular rate under consideration became effective, size of tenant,
relative operating expenses, relative services provided, whether the tenant improvement allowance
relates to first generation space or second generation space, and similar considerations.

D. Arbitration. If Tenant delivers an Arbitration Notice to Landlord prior to the expiration of
Tenant’s Decision Period, then the term of the Lease shall be extended for the Renewal Period
based on the Market Rental Rate being established in accordance with the procedure set forth
below. If the following arbitration process is not completed prior to the commencement of the
applicable Renewal Period, Tenant shall continue to pay Base Rent and parking charges at the rates
in effect prior to such Renewal Period until such time as the arbitration process is complete, at
which time Tenant will pay Landlord, or Landlord will pay Tenant, the amounts necessary to adjust
the payments made prior to such date to be equal to the Market Rental Rate determined by such
arbitration process.

Rider No. 1-ii

 

 

-iii-

	(i)	 	Each party shall deliver to the other, within ten (10) days after Tenant delivers the
Arbitration Notice, such party’s determination of the Market Rental Rate and associated
tenant improvement allowance then in question, which determinations shall be used by the
arbitrator pursuant to subparagraph (iv) below to determine the Market Rental Rate and
associated tenant improvement allowance.

	(ii)	 	Tenant and Landlord shall mutually and promptly select a person who has had not less than
ten (10) years’ experience in the metropolitan Austin, Texas area in commercial office
leasing matters, to act as arbitrator hereunder. If a selection is not made within thirty
(30) days after an Arbitration Notice has been delivered to Landlord, the arbitrator shall,
upon the request of either party, be appointed by the American Arbitration Association, but
in any case said arbitrator will have at least ten (10) years experience as specified above.
The arbitration proceedings shall take place at a mutually acceptable location in the City of
Austin, Texas.

	(iii)	 	In determining any controversy or dispute, the arbitrator shall apply the pertinent
provisions of this Amendment without departure therefrom in any respect. The arbitrator shall
not have the power to add to, modify or change any of the provisions of this Amendment, but
this provision shall not prevent in any appropriate case the interpretation, construction and
determination by the arbitrator of the applicable provisions of this Amendment to the extent
necessary in applying the same to the matters to be determined by arbitration.

	(iv)	 	Subject to subparagraph (iii) above, the arbitrator shall determine which of the Market
Rental Rates proposed by Landlord and Tenant is closest to the Market Rental Rate as
determined by the arbitrator, and such Market Rental Rate chosen by Landlord or Tenant, which
is closest to the rate determined by the arbitrator, shall be deemed to be the Market Rental
Rate hereunder. The decision of the arbitrator shall be final and binding upon the parties
hereto.

	(v)	 	During any arbitration proceedings pursuant to this Paragraph D, the parties hereto shall
continue to perform and discharge all their respective obligations under the Lease. In the
event the decision of the arbitrator has not been made prior to the commencement of the
Renewal Period, Tenant shall continue to pay Base Rent at the rate in effect prior to such
Renewal Period until such time as the arbitration process is complete, at which time Tenant
will pay Landlord, or Landlord will pay Tenant, the amounts necessary to adjust the payments
made prior to such date to be equal to the Market Rental Rate determined by such arbitrator.

Rider No. 1-iii

 

 

RIDER NO. 2 

RIGHT OF FIRST OFFER

Subject to the terms and conditions of this Rider No. 2, Landlord hereby grants Tenant an
ongoing right of first offer, exercisable by Tenant at any time during the Term of the Lease, to
expand the Premises to include any rentable floor space available for leasing on the second
(2nd) floor of the Building (the “ROFO Space”) as set forth in and on the same terms and
conditions contained in (1) a written bona fide, arms-length offer (which shall specify the terms
and conditions of the proposed lease) received by and acceptable to Landlord or (2) a written bona
fide, arms-length offer (which shall specify the terms and conditions of the proposed lease) made
by Landlord to a third party and acceptable to such third party, although such writings need not be
signed by Landlord or the proposed tenant, and Landlord is otherwise prepared to draft a lease or
amendment, as applicable, for such third party reflecting such terms (each, a “Bona Fide Offer”).
Within three (3) business days following Landlord’s determination that there has been a Bona Fide
Offer, Landlord shall deliver to Tenant a written notice of same (the “Offer Notice”), including
the identity of the third party that is involved in the Bona Fide Offer and a complete copy of the
Bona Fide Offer. Notwithstanding anything else herein to the contrary, Landlord shall not be
required to give the Offer Notice, nor may Tenant exercise its rights in this Paragraph, if at the
time Landlord receives or would otherwise deliver the Offer Notice or Tenant would otherwise accept
a Bona Fide Offer, (i) there is an uncured Event of Default under the Lease, or (ii) Tenant, an
Affiliate of Tenant or Tenant’s Successor is not the “Tenant” under the Lease or such parties are
not in occupancy of at least 30,000 rentable square feet on the first (1st) floor of the
Building.

Tenant shall have five (5) business days after receipt of the Office Notice and copy of the Bona
Fide Offer to accept same by written notice given to Landlord. If Tenant accepts such Bona Fide
Offer, all of the ROFO Space that was subject of such Bona Fide Offer shall be automatically added
to the Premises then being leased by Tenant on the terms set forth in the Bona Fide Offer and
otherwise on the terms and conditions contained in the Lease. Should Tenant fail to exercise its
right to lease the ROFO Space covered by the Bona Fide Offer by providing written notice thereof to
Landlord within five (5) business days of Landlord’s delivery to Tenant of the Bona Fide Offer, or
there is an uncured Event of Default under the Lease, Tenant shall be deemed to have waived its
rights under this Rider No. 2 with respect to the ROFO Space that is covered by the Bona
Fide Offer, and Landlord thereafter shall have a period of two hundred seventy (270) days to lease
the ROFO Space on terms materially consistent with the terms of such Bona Fide Offer to the third
party named in the Bona Fide Offer. If Landlord does not enter into a lease agreement with the
aforementioned third party in the time period specified, Tenant’s right of first offer for such
space shall be reinstated at the end of such time period. If Tenant exercises its right of first
offer with respect to a Bona Fide Offer, within thirty (30) days of Landlord’s deliver of the
notice of the Bona Fide Offer to Tenant, Landlord and Tenant shall enter into and execute an
appropriate amendment to the Lease.

Rider No. 2-i

 

 

RIDER NO. 3 

MUST TAKE SPACE

     1. Lease. Effective on the first (1st) Business Day after the date that
(a) the existing tenant has vacated the Must Take Space (as defined below), (b) the existing
tenant has removed its personal property from the Must Take Space, (c) the Must Take Space Work
(as defined below) has been completed, if applicable as described below, and (d) Landlord notifies
Tenant (“Must Take Space Notice”) that such conditions have been satisfied (the “Must Take
Commencement Date”), which Landlord estimates to be approximately September 1, 2010, the Premises
shall be automatically expanded subject to the terms specified in this Rider No. 3 to
include approximately 1,031 rentable square feet located on the 1st floor of the Building adjacent
to the Third Expansion Space, as shown on the attached Schedule 1 (the “Must Take Space”).
The lease of the Must Take Space is subject to all of the terms and conditions of the Lease,
except as provided in this Rider No. 3.

     2. Must Take Space Work. As of the Effective Date of this Amendment, there is certain
elevator equipment located in the Must Take Space that is utilized by the current tenant of such
space (the “Elevator Equipment”). Landlord and Tenant agree that Landlord may, at no cost to
Tenant, remove, or cause to be removed, the Elevator Equipment at any time prior to the date
Landlord delivers the Must Take Space Notice to Tenant. Notwithstanding anything in the foregoing
sentence to the contrary, if an applicable governmental authority provides written notice that the
Elevator Equipment must be removed, whether such notice is delivered on or after the Must Take
Commencement Date, Landlord shall, at no cost to Tenant, remove, or cause to be removed, the
Elevator Equipment within reasonable time after Landlord’s receipt of such notice based on a
schedule which is reasonably approved by Tenant with all work being performed after normal
business hours (as described in Paragraph 4(b) of this Amendment). Landlord does hereby
acknowledge and agree that Tenant shall not be required to construct or perform any improvement,
alteration or other work to separate the Elevator Equipment from the Must Take Space. However,
Tenant may elect, in its sole discretion, to construct a sheetrock enclosure to separate the
Elevator Equipment from the Must Take Space. In the event the Elevator Equipment is removed for
any reason (except by Tenant) and such an enclosure has been constructed, Landlord shall also, at
no cost to Tenant, (i) repair any damage to the enclosure caused by the removal of the Elevator
Equipment, and (ii) perform any other work necessary in the Must Take Space required by any
applicable governmental authority to comply with all applicable codes related to the removal of
the Elevator Equipment and the conditions which exists after such removal including, but not
limited to, filling in the hole in the floor above the Must Take Space, installing a finished
ceiling, and installing fire sprinklers (if required to be installed under applicable law). All
such work shall be performed on a schedule which is reasonably approved by Tenant with all work
being performed after normal business hours (as described in Paragraph 4(b) of this Amendment).

     3. Amendment. Within ten (10) business days of delivery of the Must Take Space,
Landlord and Tenant shall execute a lease amendment adding the Must Take Space as part of the
Premises for all purposes under the Lease (including any extensions or renewals) effective as of
the delivery date of the same and confirming the Must Take Commencement Date, Base Rent and other
terms applicable to the Must Take Space (some of which are specified in this Rider

Rider No. 3-i

 

 

-ii-

No. 3) (the “Must Take Space Amendment”); provided, however, notwithstanding anything
contained herein to the contrary, Tenant shall not be required to pay Base Rent or any other costs
related to the Must Take Space for a period of thirty (30) days after the Must Take Commencement
Date. Such lease amendment shall contain a work letter (“MTS Work Letter”) substantially in the
form of Exhibit B to the Amendment regarding the construction of leasehold
improvements in the Must Take Space, except that Landlord shall have no obligation to provide
Tenant with any allowance in the MTS Work Letter for any improvements Tenant intends to perform in
the Must Take Space.

     4. Condition of Must Take Space. Except as provided for in Section 2 of this Rider No.
3, Tenant shall accept the Must Take Space in its “as-is” condition as of the Must Take
Commencement Date, except for (a) Latent Defects in the Must Take Space of which Tenant notifies
Landlord within one hundred eighty (180) days after the Must Take Commencement Date and (b) any
material changes occurring to the condition of the Must Take Space between the Effective Date of
this Amendment and the Must Take Space Commencement Date, and subject to the terms of the Lease and
the Must Take Space Amendment. However, any necessary construction of leasehold improvements which
Tenant, in its sole discretion, elects to perform shall be accomplished and the cost of such
construction shall be paid by Tenant subject to reimbursement, if any, of such costs by Landlord as
provided for in Paragraph 2 of Exhibit B of this Amendment. Tenant’s right to
terminate the Lease due to the condition of the Must Take Space or the Premises shall be limited to
those rights, if any, contained in the Lease or the Must Take Space Amendment. Landlord hereby
represents that, to Landlord’s current actual knowledge, Landlord has received no written notice
from any applicable governmental authority of any current violation of any laws, including, without
limitation, the Americans with Disability Act, with respect to the Must Take Space. In addition to
the other terms and conditions of the Must Take Space Amendment, Landlord and Tenant agree that the
following language shall be included with respect to the condition of the Must Take Space:
“Tenant hereby agrees that the Must Take Space is in good order and satisfactory condition and
that, except as otherwise expressly set forth in the Lease, there are no
representations or warranties of any kind, express or implied, by Landlord
regarding the Must Take Space, the Building or the Project. Except for the Must Take
Space Work, if applicable, Tenant acknowledges that Landlord has not undertaken to perform any
modification, alteration or improvement to the Must Take Space or the Premises. By taking
possession of the Must Take Space, Tenant waives (i) any claims due to defects in
the Must Take Space except for Latent Defects in the Must Take Space of which Tenant notifies
Landlord within one hundred eighty (180) days after the Must Take Commencement Date;
(ii) any claims due to material changes occurring to the condition of the Must Take Space
between the Effective Date and the Must Take Space Commencement Date except those of which Landlord
has been notified in writing prior to Tenant’s taking possession of the Must Take
Space; and (iii) all express and implied warranties of suitability,
habitability and fitness for any particular purpose.”

     5. Base Rent. Commencing thirty (30) days after the Must Take Commencement Date and
continuing through the term of the Lease, Tenant shall, at the time and place and in the manner
provided in the Lease, pay to Landlord as Base Rent for the Must Take Space a rate per

Rider No. 3-ii

 

 

-iii-

square foot equal to the rentable square foot rate set forth in the Base Rent payable for the Third
Expansion Space – Space A, as described in Paragraph 3(b) of this Amendment, and will increase in
accordance with such schedule.

     6. Tenant Costs. Commencing thirty (30) days after the Must Take Commencement Date,
Tenant’s Proportionate Share of Tenant Costs shall be increased to 48.57% to include the Must Take
Space, so that Tenant is also paying Tenant’s Proportionate Share of Tenant Costs on the Must Take
Space commencing on such date.

Rider No. 3-iii

 

 

Schedule No. 1 to Rider No. 3 

Outline and Location of Must Take Space

Schedule No. 1 to Rider No. 3-i

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