Document:

Standard Equity Agreement

 Exhibit 10.2 
 Agreement No. 99-0248 
 STANDARD EQUITY AGREEMENT 
 This Agreement is made effective the 27th day of September, 1999, by and between Wisconsin Alumni Research Foundation (hereinafter called
“WARF”), a nonstock, nonprofit Wisconsin corporation, and NimbleGen Systems LLC (hereinafter called “NimbleGen”), a limited liability company organized and existing under the laws of Wisconsin; 
 WHEREAS, WARF and NimbleGen have entered into a License Agreement, as defined below, with respect to certain inventions owned by WARF; 

WHEREAS, as an accommodation to NimbleGen, WARF is willing to accept Units in lieu of charging NimbleGen certain fees under the License
Agreement; 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, the parties covenant and agree
as follows: 
 Section 1. Definitions. 
 For the purpose of this Agreement, the Appendix A definitions shall apply. 
 Section 2. Issuance of
Units to WARF. 
 A. Issuance of Units. 
 (i) NimbleGen shall issue to WARF, within thirty (30) days after the execution of this Agreement, Units representing ten percent
(10%) of the then outstanding Equity Interests of NimbleGen. Within such period, NimbleGen shall deliver or cause to be delivered to WARF such documentation, duly signed by appropriate officers of NimbleGen, as may be necessary to establish
WARF’s ownership of such Units. 
 (ii) All Units shall be fully-paid and non-assessable upon their issuance to WARF and
shall have the same rights and preferences granted other holders of Units. NimbleGen agrees that WARF’s percentage interest shall be maintained through the first round of equity financing and until the cash investment in or net worth of
NimbleGen is greater than $1,000,000. Thereafter, WARF’s percentage interest shall be subject to dilution in the same manner as the most favored of the other holders of NimbleGen’s Units. 
 B. Certain Adjustments. 
 In the event
of any transaction as a result of which Equity Interests in NimbleGen are issued in respect of the outstanding Units, or any recapitalization, reorganization, or other similar action with respect to its Units, between the date of this Agreement and
the date that Units are issued to WARF pursuant to this Agreement, then appropriate adjustments shall be made to the number of Units to be issued to WARF pursuant to Section 2A so that WARF receives an equivalent percentage of NimbleGen’s
issued and outstanding Units. 

 Section 3. Put Option. 
 A. Grant of Put Option. 
 NimbleGen
hereby agrees to repurchase the Units issued to WARF pursuant to this Agreement, at the option of WARF, on the terms contained in this Section 3. 
 B. Period for Exercise. 
 WARF shall have the right to exercise part or all of its put option under
this Section 3 after the fifth anniversary of the effective date of this Agreement, unless prior to such date NimbleGen (or a successor entity to NimbleGen) has undergone an initial public offering. Such right shall expire on the earlier of the
date NimbleGen (or a successor entity to NimbleGen) undergoes an initial public offering or the tenth anniversary of the effective date of this Agreement. 
 C. Price Per Unit. 
 NimbleGen shall pay WARF consideration for each Unit put to it hereunder in cash
in an amount equal to the Fair Market Value of the Units being put as of the date WARF exercises its put option. 
 D.
Exercise of Option. 
 WARF may exercise its put option only by its delivery of a written notice to NimbleGen that WARF is exercising
its rights under this Section 3. In WARF’s sole discretion, WARF may exercise its rights to either some or all of the Units with respect to which it has a put option under this Section 3 at any time after the date the option becomes
exercisable as specified in Section 3B of this Agreement and prior to its expiration date as set forth in Section 3B. 
 E. Certain Adjustments. 
 In the event of any transaction as a result of which Equity Interests in NimbleGen are issued in
respect of the outstanding Units, or any recapitalization, reorganization, or other similar action with respect to its Units, this put option shall apply to any new Units issued to WARF pursuant to such corporate action and appropriate adjustments
shall be made to the number of Units subject to this put option (including any new Units) and the price per Unit under this option so that the value of this option to WARF is not diminished by such action. 
 F. Inability of NimbleGen to Purchase. 
 If NimbleGen is unable to lawfully purchase all of the Units which it is required or permitted to purchase pursuant to this Agreement because such purchase is not legally permitted (including under
Wis.Stats. §183.0607), then until such time as NimbleGen is legally able to purchase the Units pursuant to this Agreement at the original purchase price provided herein, or, if applicable, the 

  

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value redetermined as hereinafter set forth, the purchase thereof shall be considered to be deferred, and the rights of NimbleGen to purchase or demand
purchase hereunder shall not be considered to commence until that time. Notwithstanding the forgoing, if WARF shall so request, NimbleGen shall purchase as many Units as it is legally able to purchase as requested by WARF on the date originally
required by this Section 3 (the “Original Closing Date”) and at such times as WARF may thereafter reasonably request. Any deferral of the purchase of Units hereunder shall not change, defer or otherwise affect the date as of which the
value of each Unit to be purchased is to be determined as provided herein (the “Original Valuation Date”) with respect to deferred purchases occurring during the one (1) year period following the Original Closing Date. Thereafter, the
value per Unit of any Units, the purchase of which has been deferred hereunder (the “Deferred Units”) shall be redetermined on each successive one (1) year anniversary (“Redetermination Date”) of the Original Closing Date
and the value of each Deferred Unit remaining to be purchased at any time shall be the greater of (a) the value thereof determined on the Original Valuation Date, or (b) the value thereof determined on the Redetermination Date last
preceding the purchase of such Units. 
 Section 4. Representations and Warranties. 
 A. Representations and Warranties by NimbleGen. 
 NimbleGen represents and warrants to WARF that: 
 (i) NimbleGen was duly organized and is a
validly existing limited liability company under the laws of the State of Wisconsin with adequate power and authority to conduct the business in which it is now engaged, and NimbleGen is duly qualified to do business as a foreign limited liability
company and is in good standing in such other states or jurisdictions as is necessary to enable it to carry on its business. 
 (ii) There are no actions, suits, or proceedings pending or threatened against NimbleGen, its properties, or its patents in any court or before any governmental or administrative agency, which can have any material or adverse effect on the
business as now conducted or on the properties, the financial condition, or income of NimbleGen, and NimbleGen is not in default under any order or judgment of any court or governmental or administrative agency. 
 (iii) NimbleGen is not a party to any agreement or instrument, or subject to any restrictions in its charter documents, materially or
adversely affecting its business and operations, present or prospective, or its property, assets, or condition, financial or otherwise. 
 (iv) NimbleGen is not in default in the performance, observance, or fulfillment ; of any of the obligations, covenants, or conditions contained in any bond, debenture, note, or other evidence of indebtedness or any
contract or other agreement of NimbleGen. 
 (v) This Agreement has been duly authorized, executed and delivered on behalf of
NimbleGen and constitutes the valid and binding agreement of NimbleGen, enforceable in accordance with its terms, and NimbleGen has full power and lawful authority to issue, sell, and repurchase the Units on the terms and conditions herein set
forth. 
  

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 (vi) Consummation of the transactions contemplated by this Agreement in compliance with
provisions of this agreement will not result in any breach of any of the terms, conditions, or provisions of, or constitute a default under, or result in the creation of any lien, charge, or encumbrance on, any property or assets of NimbleGen
pursuant to any indenture, mortgage, deed of trust, agreement, charter document, contract, or other instrument to which NimbleGen is a party or by which NimbleGen may be bound. 
 (vii) NimbleGen is in compliance with all federal, state and local environmental laws and there are no conditions currently existing or
contemplated which are likely to subject NimbleGen to damages, penalties, injunctive relief, removal costs, remedial costs or cleanup costs under any such laws or assertions thereof. 
 (viii) Attached hereto as Appendix B and hereby made a part hereof are the Articles of Organization (including any amendments thereto) and
the Operating Agreement (including any amendments thereto) of NimbleGen. 
 (ix) As of the date of this Agreement, 200 Units
are validly issued and outstanding and not subject to any other parties’ preemptive rights. There are no other authorized or outstanding Equity Interests of NimbleGen of any class, kind, or character, and there are no outstanding subscriptions,
options, warrants, or other agreements, or commitments obligating NimbleGen to issue any additional Equity Interests of any class, or any options or rights with respect thereto, or any securities convertible into any Units of stock of any class.

 (x) Attached hereto as Appendix C and hereby made a part hereof is a list of all restrictions on the transfer of any Units
or other securities of NimbleGen and all agreements between any members or convertible debtholders of NimbleGen regarding the valuation or transfer of any Units or other securities of NimbleGen. 
 (xi) Attached hereto as Appendix D and hereby made a part hereof are the Financial Statements of NimbleGen which are provided to WARF as
of the date of this Agreement. 
 (xii) Since the date of the most recent Financial Statements provided to WARF under this
Agreement, there has been no: (a) material adverse change in the condition, financial or otherwise, of NimbleGen other than changes in the ordinary course of business; (b) damage or loss, whether or not covered by insurance, materially and
adversely affecting NimbleGen’s properties or business taken as a whole; and (c) declaration or setting aside, or payment of any dividend or other distribution in respect of the Units of NimbleGen or any direct or indirect redemption,
purchase or other acquisition of such Units. 
 (xiii) All Financial Statements provided or to be provided to WARF under this
Agreement are true and complete and have been prepared in accordance with generally accepted accounting principles. As of the date of the most recent Financial 

  

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Statements provided to WARF under this Agreement, NimbleGen had no material liabilities, absolute or contingent, that are not reflected in such Financial
Statements except obligations incurred in the ordinary course of business. : 
 (xiv) NimbleGen has filed all tax returns and
reports required to be filed by it. NimbleGen has paid all taxes, interest and penalties required to be paid pursuant to said returns or otherwise required to be paid by it. 
 (xv) NimbleGen will not dilute the Units provided to WARF under this Agreement through $1,000,000 in capitalization. 
 B. Representations and Warranties by WARF. 
 WARF represents and warrants to NimbleGen that: 
 (i) WARF is acquiring the Units for
investment for its own account and not with a view to resale or distribution within the meaning of the Securities Act, and WARF does not intend to divide its participation with others or to resell or otherwise dispose of all or any part of the Units
without registration under the Securities Act, except to NimbleGen or unless and until it determines at some future date that changed circumstances, not now in its contemplation, make such disposition advisable. 
 (ii) This Agreement has been duly authorized, executed, and delivered on behalf of WARF and constitutes the valid and binding Agreement of
WARF, enforceable in accordance with its terms, and WARF has full power and lawful authority to purchase and sell the Units on the terms and conditions herein set forth. 
 C. Survival and Timing of Warranties. 
 The warranties and representations made in this Section 4 shall survive the closing of any issuance of Units to WARF. The warranties and representations made in this Section 4 shall be true and correct as of
the date of this Agreement and as of the date the Units are issued to WARF. 
 Section 5. Miscellaneous Covenants. 
 A. Financial Statements and Other Information. 
 As long as WARF owns any Units, NimbleGen shall promptly provide to WARF such Financial Statements, amendments to or restatements of its Articles of Organization or Operating Agreement, Unit transfer restrictions and
agreements between its members with respect to the valuation or transfer of Units and amendments thereto, and such other information respecting the business, affairs, and financial condition of NimbleGen as WARF may reasonably request and
WARF’s representatives may visit and inspect any of the properties, books and information of NimbleGen. 
  

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 B. Preemptive Rights. 
 In addition to its other rights under this Agreement, WARF shall have a preemptive right during the term of this Agreement to acquire such Equity
Interests of NimbleGen as may be issued from time to time in accordance with the terms of this Agreement. Such preemptive right shall apply with respect to all such interests issued by NimbleGen after the effective date of this Agreement, whether
such additional interests constitute a part of the Units presently or subsequently authorized. WARF shall have the right to acquire Equity Interests of the type being issued in an amount equal to WARF’s Unit Percentage immediately before the
issuance multiplied by the total interests of that type that are to be issued to all persons or entities pursuant to that issuance. The terms and conditions of WARF’s exercise of its preemptive rights, including the consideration to be paid for
such interests, shall be no less favorable to WARF than the most favorable terms and conditions offered to any other member or prospective member with respect to the interests then being issued. WARF may, at its option, exercise such preemptive
rights to some or all of the Units or other interests to which it has preemptive rights under this Section 5B. 
 C.
Issuance of Units to Affiliates. 
 NimbleGen shall not issue any Equity Interests of NimbleGen (including Units) to any Affiliate,
except for interests granted as compensation for services of employees or directors approved by WARF, which approval shall not be unreasonably withheld for less than the fair market value of that security. NimbleGen shall have the burden of proving
that it received consideration for any such issuance equal to the fair market value of the interests issued. 
 D.
Registration Rights. 
 (i) If NimbleGen (or a successor entity to NimbleGen) has previously undergone an initial
public offering, WARF shall have a one-time right to require NimbleGen (or such successor) to Register (including any related qualification under state securities laws) its Units (or its equity securities in such successor entity), for an effective
period of up to three (3) months, provided such Registration is necessary under the Securities Act to permit WARF to sell such Units (or equity securities) in the public market, and provided further that such Registration shall not be effective
prior to one year after the date of the initial public offering. In connection with any such Registration, the parties agree to cooperate with each other and execute such agreements and other documents as shall be reasonably requested. NimbleGen (or
such successor) may delay commencement of any Registration for up to six (6) months if, in its judgment, such delay is in the best interests of the company. In the event of any registered public offering by NimbleGen (or a successor), WARF
agrees that, if requested by the underwriters, it will not sell any of its equity securities for a period commencing thirty (30) days prior and ending six (6) months following the public offering. 
 (ii) All Registration Expenses incurred in connection with any registration pursuant to Section 7D(i) shall be borne by NimbleGen.

  

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 E. Notice of Fundamental Corporate Transactions. 
 During the term of this Agreement, NimbleGen shall provide WARF with written notice of any of the following fundamental transactions: (i) merger with
another entity, consolidation, reorganization, liquidation, or dissolution of NimbleGen; (ii) sale, lease, exchange or other disposal of all or substantially all of the property or assets of NimbleGen; or (iii) adoption of any plan or
agreement to do any of the foregoing. 
 F. Board Meetings. 
 NimbleGen agrees that WARF shall be allowed to attend all meetings of the Board of Directors as a non-voting observer. WARF shall be provided advance
notice of all meetings and shall be provided the same materials provided to members of the Board. 
 Section 6. Termination.

 A. Unless terminated sooner by either party as provided below, this Agreement shall terminate on the date that WARF, after
having been issued Units hereunder, no longer owns any Equity Interest of NimbleGen or any equity securities in a successor entity to NimbleGen. If this Agreement terminates automatically as provided in this Section 6A, the License Agreement
shall remain in effect according to the terms specified therein. 
 B. If NimbleGen at any time fails to issue Units to WARF
on a timely basis, fails to timely repurchase Units from WARF under the terms of this Agreement, or otherwise commits a material breach of this Agreement, or if any of the representations or warranties made by NimbleGen are untrue in any material
respect as of any date on which they are required to be true and correct, and NimbleGen fails to remedy any such breach or default within thirty (30) days after written notice thereof by WARF, WARF may, at its option, terminate either this
Agreement, the License Agreement, or both. 
 C. If WARF at any time commits a material breach of this Agreement or any of the
representations or warranties made by WARF are untrue in any material respect as of any date on which they are required to be true and correct, and WARF fails to remedy any such breach or default within thirty (30) days after written notice
thereof by NimbleGen, NimbleGen may, at its option, terminate either this Agreement, the License Agreement, or both. 
 Section 7.
Assignability. 
 NimbleGen may not assign its rights or obligations hereunder or under the License Agreement to any entity without
WARF’s prior written consent, other than an assignment in connection with a transfer of all or substantially all of the assets of NimbleGen to a corporation owned at the time of the assignment, directly or indirectly, by the same persons or
entities as own NimbleGen provided such ownership is in substantially the same proportions as their ownership interests in NimbleGen. In the event of such an assignment, such corporation shall become subject to all of the obligations of NimbleGen
under this Agreement, and the references herein to NimbleGen shall be deemed to refer to such corporation, the references herein to Units, Equity Interests of NimbleGen or 

  

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other equity securities of NimbleGen shall refer to the stock or other equity securities of such corporation, and all other terms used herein shall be
modified as appropriate to reflect that NimbleGen is a corporation as opposed to a limited liability company. WARF may not assign its rights or obligations hereunder without the prior written consent of NimbleGen. 
 Section 8. Miscellaneous. 
 This
Agreement shall be governed by and construed in all respects in accordance with the laws of the State of Wisconsin without application of conflict of law principles. If any provisions of this Agreement are or shall come into conflict with the laws
or regulations of any jurisdiction or any governmental entity having jurisdiction over the parties or this Agreement, those provisions shall be deemed automatically deleted, if such deletion is allowed by relevant law, and the remaining terms and
conditions of this Agreement shall remain in full force and effect. If such a deletion is not so allowed or if such a deletion leaves terms thereby made clearly illogical or inappropriate in effect, the parties agree to substitute new terms as
similar in effect to the present terms of this Agreement as may be allowed under the applicable laws and regulations. 
 Section 9.
Notices. 
 Any notice required to be given pursuant to the provisions of this Agreement shall be in writing and shall be deemed to
have been given at the earlier of the time when actually received as a consequence of any effective method of delivery, including but not limited to hand delivery, transmission by telecopier, or delivery by a professional courier service or the time
when sent by certified or registered mail addressed to the party for whom intended at the address below or at such changed address as the party shall have specified by written notice, provided that any notice of change of address shall be effective
only upon actual receipt. 
  

	 	(a)	Wisconsin Alumni Research Foundation 

 Attn: Managing
Director 
 614 Walnut Street 
 Madison,Wisconsin 53705 
  

	 	(b)	NimbleGen Systems LLC :. 

 c/o Kenneth C. Hunt 

Godfrey & Kahn, S.C. 
 780 North
Water Street 
 Milwaukee, Wisconsin 53202 
 Section 10. Integration. 
 This Agreement constitutes the full understanding between the parties
with reference to the subject matter hereof, and no statements or agreements by or between the parties, whether orally or in writing, except as provided for elsewhere in this Section 10, made prior to or at the signing hereof, shall vary or
modify the written terms of this Agreement. Neither party shall claim any amendment, modification, or such release from any provisions of this Agreement by mutual agreement, acknowledgement, or otherwise, unless: such mutual agreement is in writing,
signed by the other party, and specifically states that it is an amendment to this Agreement. 
  

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 Section 11. Authority. 
 The persons signing on behalf of WARF and NimbleGen hereby warrant and represent that they have authority to execute this Agreement on behalf of the
party for whom they have signed. 
 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the dates indicated
below. 
  

							
	 WISCONSIN ALUMNI RESEARCH FOUNDATION
	  	
				
	By:	 	 /s/Richard H. Leazer
	 	Date:	  	September 29, 1999
		 	Richard H. Leazer, Manager Director	 		  	
			
	NIMBLEGEN SYSTEMS LLC	 		  	
				
	By:	 	 /s/Robert J. Palay
	 	Date:	  	September 27, 1999

  

					
	Name and Title:	 	 Robert J. Palay, Managing Member
	  	

  

					
	Reviewed by WARF’s Attorney:	  	
		
	 /s/Elizabeth L.R. Donley
	  	
	Elizabeth L. R. Donley	  	

 September 27, 1999 
 (WARF’s attorney shall not be deemed a signatory to this Agreement.) 
  

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 APPENDIX A 
 A. “Unit” shall mean a capital and profits interest in NimbleGen. 
 B. “Equity Interest”
shall mean any interest in profits or capital or any option or right, including any convertible indebtedness to acquire such an interest. 
 C. “License Agreement” shall mean the license agreement entered into by WARF and NimbleGen of even date herewith. 
 D.
“Affiliate” shall mean any person who is related by blood or marriage to any person or entity who owns more than twenty percent of the issued and outstanding Units of NimbleGen or to any manager, director, or employee of NimbleGen or any
entity in which any such person has a direct or indirect beneficial ownership interest or for which any such person serves as a director, officer or employee. 
 E. “Financial Statements” shall mean a balance sheet, statement of earnings, stockholders’ equity and cash flow as of the end of the last fiscal year that has been completed when the statements are to
be provided to WARF and a balance sheet and income statement as of the end of the last fiscal quarter that has been completed when the statements are to be provided to WARF. If NimbleGen’s Financial Statements have been audited, then NimbleGen
shall provide WARF with such audited statements. 
 F. “WARF’s Unit Percentage” shall mean the percentage derived by dividing
the sum of the number of Units then Owned by WARF by the total number of issued and outstanding Units at such time. 
 G.
“Register,” “Registered,” and “Registration” shall refer to a registration effected by preparing and filing a Registration Statement in compliance with the Securities Act, and the declaration or ordering of the
effectiveness of such Registration Statement. 
 H. “Securities Act” shall mean the Securities Act of 1933, as amended, or any
similar federal statute, and the rules and regulations of the Securities and Exchange Commission issued under such act, as they each may, from time to time, be in effect. 
 I. “Registration Statement” shall mean a registration statement on Form S-1 or Form S-3 filed by NimbleGen with the Securities and Exchange Commission for a public offering and sale of securities of
NimbleGen or successor entity to NimbleGen. 
 J. “Registration Expenses” shall mean all expenses incurred by NimbleGen in
complying with Section 5D(i) of this Agreement. including, without limitation, all registration and filing fees, printing expenses, and fees and disbursements of counsel for NimbleGen. 
 K. “Fair Market Value” shall mean the value of the Units as determined, if possible, by the mutual consent of the parties. If the parties
cannot agree on such value, the fair market value of the Units shall be determined by an independent appraiser who shall be jointly appointed by the parties, but whose fees and expenses shall be paid by each party in equal Units. The independent
appraiser shall make his appraisal based on a hypothetical sale of all of the Units of NimbleGen on a fully diluted basis to a willing third party buyer who intends to continue NimbleGen as a going concern, and such appraisal shall not contain any
minority interest discount, any discount for lack of marketability or any other discount that would not apply uniformly to all Units of NimbleGen with respect to such a hypothetical sale. 

 NimbleGen Systems LLC 
 505 S. Rosa Road 
 Madison, Wisconsin 53719 
 August 30, 2000 
 Wisconsin Alumni Research Foundation 
 Attn: Managing Director 
 614 Walnut Street 
 Madison, Wisconsin 53705 
 Please refer to that certain
Standard Exclusive License Agreement made September 27, 1999, by and between Wisconsin Alumni Research Foundation (“WARF”) and NimbleGen Systems LLC (“NimbleGen LLC”) as amended by an Amendment to License Agreement made
April 24, 2000 (as amended, the “License Agreement”), and that certain Standard Equity Agreement made September 27, 1999, by and between WARF and NimbleGen LLC (the “Equity Agreement”). 
 As you know, we anticipate that the holders of the outstanding membership interests in NimbleGen LLC (including WARF) will be exchanging these interests
for stock in a new corporation, NimbleGen Systems Inc. (the “Corporation”), under the terms of an Exchange Agreement to be dated on or about August 30, 2000, and that certain entities (including WARF) and individuals will be
purchasing additional stock in the Corporation for cash under the terms of a Preferred Stock Purchase Agreement and a Common Stock Purchase Agreement to be dated on or about August 30, 2000. In connection with these transactions, this will
confirm our agreement as follows: 
  

	1.	WARF consents to the dissolution of NimbleGen LLC following the acquisition by the Corporation of the membership interests in NimbleGen LLC and, in connection with such dissolution,
the assignment by NimbleGen LLC of its interests in the License Agreement and the Equity Agreement to the Corporation. Following such assignment of the License Agreement, the Corporation will become subject to all of the rights and obligations of
NimbleGen LLC under such agreement and the references in such agreement to NimbleGen LLC will be deemed to refer to the Corporation. With regard to the Equity Agreement, following the acquisition by the Corporation of the membership interests in
NimbleGen LLC, and notwithstanding any provision to the contrary contained in such agreement, any references to “Units” in such agreement will be deemed to refer to Common Stock of the Corporation, and the references to “Equity
Interests” in such agreement will be deemed to refer to capital stock of the Corporation or any option or right, including convertible indebtedness, to acquire such stock. 

 Wisconsin Alumni Research Foundation 
 August 30, 2000 
 Page 2 
  

	2.	WARF confirms that NimbleGen LLC is in compliance with all of its obligations under the License Agreement to be performed by it prior to the date of this letter or that such
compliance has been waived (and that WARF has no present right to terminate the License Agreement due to any failure to comply with any such obligation), including without limitation the obligation to supply written development reports specified in
Section 3 of such agreement or the obligation to provide evidence of insurance coverage under Section 12B of such agreement. Notwithstanding the foregoing, the parties acknowledge that NimbleGen LLC has not provided WARF with a development
report for the period ending June 30, 2000, or the business plan described in Section 7D of such agreement. WARF agrees that it will not exercise any right it may have to terminate the License Agreement as a result of such failure to
comply. However, the obligation to provide such report and business plan will remain in effect and will be assumed by the Corporation upon the assignment of the License Agreement to the Corporation. 

  

	3.	WARF confirms that NimbleGen LLC is in compliance with all of its obligations under the Equity Agreement to be performed by it prior to the date of this letter or that such
compliance has been waived (and that WARF has no present right to terminate the Equity Agreement or the License Agreement due to any failure to comply with any such obligation). Without intending to limit the foregoing, WARF confirms that its rights
have been satisfied or waived: 

  

	 	(a)	with respect to the maintenance of its percentage interest required under Section 2A(ii) and 4A(xv) of such agreement; 

  

	 	(b)	with respect to its preemptive rights under Section 5B of such agreement, including any such rights in connection with the issuance by the Corporation of its Preferred Stock
and Common Stock pursuant to the Preferred Stock Purchase Agreement and Common Stock Purchase Agreement referred to above; and 

  

	 	(c)	with respect to its approval rights under Section 5C of such agreement concerning the prior issuance of Units in NimbleGen LLC to Roland Green and Emile Nuwaysir.

  

	4.	Upon the execution and delivery of the Stockholders Agreement to be entered in connection with these transactions, the Equity Agreement will be amended as follows:

  

	 	(a)	Section 5B of such agreement, regarding preemptive rights, will be deleted in view of the preemptive rights granted in the Stockholders Agreement; and 

 Wisconsin Alumni Research Foundation 
 August 30, 2000 
 Page 3 
  

	 	(b)	in Section 5C of such agreement, regarding issuance of Units to Affiliates, the phrase “approved by WARF, which approval shall not be unreasonably withheld” will be
deleted. 

 If this letter correctly sets forth your understanding of our agreement, please so indicate by having a copy
executed on behalf of WARF in the place indicated below and returning it to us. 
  

			
	NIMBLEGEN SYSTEMS LLC
		
	By:	 	 /s/ Robert J. Palay

 The undersigned confirms its agreement to the foregoing this 30th day of August, 2000. 
  

			
	WISCONSIN ALUMNI RESEARCH FOUNDATION
		
	By:	 	 /s/ 

		
	By:	 	 /s/Standard Exclusive License Agreement

 Exhibit 10.3 
 NOTE: The information designated by a bracketed asterisk [*] has been omitted pursuant to a request for confidential treatment and has been filed separately with the Securities and Exchange Commission. 
 Agreement No. 99-0247 
 STANDARD
EXCLUSIVE LICENSE AGREEMENT 
 This Agreement is made effective the
27th day of September, 1999, by and between Wisconsin Alumni Research Foundation (hereinafter called
“WARF”), a nonstock, nonprofit Wisconsin corporation, and NimbleGen Systems LLC (hereinafter called “NimbleGen”), a limited liability company organized and existing under the laws of Wisconsin; 
 WHEREAS, WARF owns certain inventions that are described in the “Licensed Patents” defined below, and WARF is willing to grant a license
to NimbleGen under any one or all of the Licensed Patents and NimbleGen desires a license under all of them; 
 NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth below, the parties covenant and agree as follows: 
 Section 1.
Definitions. 
 For the purpose of this Agreement, the Appendix A definitions shall apply. 
 Section 2. Grant. 
 A.
License. 
 WARF hereby grants to NimbleGen an exclusive license, limited to the Licensed Field and the Licensed Territory, under the
Licensed Patents to make, use and sell Products. 
 B. Sublicenses. 
 (i) NimbleGen may grant written, nonexclusive or limited term exclusive sublicenses to third parties during the period in which this license is
exclusive. Any agreement granting a sublicense shall terminate with the termination of this Agreement and shall state that the sublicense is subject to the termination of this Agreement. NimbleGen shall have the same responsibility for the
activities of any sublicensee as if the activities were directly those of NimbleGen. 
 (ii) In respect to sublicenses granted by NimbleGen
under this Section 2B, NimbleGen shall pay to WARF an amount equal to what NimbleGen would have been required to pay to WARF had NimbleGen sold the amount of Products sold by such sublicensee. In addition, if NimbleGen receives any fees,
minimum royalties, or other payments in consideration for any rights granted under a sublicense, and such payments are not based directly upon the amount of value of Products sold by the sublicensee, then NimbleGen shall pay WARF twenty-five percent
(25%) of such payments in the manner specified in Section 4E. NimbleGen 
  

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 shall not receive from sublicensees anything of value in lieu of cash payments in consideration for any sublicense under
this Agreement without the express prior written permission of WARF. 
 C. Inventions. 
 To the extent permitted by applicable law, NimbleGen hereby grants, and shall require its sublicensee(s) to grant, to WARF an option to obtain a
nonexclusive, royalty-free, irrevocable, paid-up license, with the right to grant sublicenses, under any and all inventions hereafter made or acquired by NimbleGen (or its sublicensee(s)) to the extent any such inventions are Improvements, but only
for research or educational purposes and not for any commercial purpose. “Improvements” shall mean any modification of an invention described in Licensed Patents which, if unlicensed, would infringe one or more claims of the Licensed
Patents. NimbleGen shall provide WARF with a written, enabling disclosure of each such invention (such as a U.S. patent application), unambiguously identifying it as an invention governed by this paragraph, as soon as practicable but no later than
six (6) months after the filing of a patent application thereon. If WARF does not exercise its option to receive a license thereunder within sixty (60) days of the date of the disclosure, its option under this paragraph shall be deemed
terminated (but only with respect to the invention so disclosed). 
 Section 3. Development. 
 NimbleGen agrees to and warrants that: it has, or will obtain, the expertise necessary to independently evaluate the inventions of the Licensed Patents;
it will establish and actively and diligently pursue the development plan (see Appendix E) to the end that the inventions of the Licensed Patents will be utilized to provide Products for sale in the commercial market; and within one month following
the end of each semi-annual period ending on June 30 and December 31 and until the Date of First Commercial Sale of Products, it will supply WARF with a written Development Report. All development activities and strategies and all aspects
of Products design and decisions to market and the like are entirely at the discretion of NimbleGen, and NimbleGen shall rely entirely on its own expertise with respect thereto. WARF’s review of NimbleGen’s development plan is solely to
verify the existence of NimbleGen’s commitment to development activity and to assure compliance with NimbleGen’s obligations to utilize the inventions of the Licensed Patents to commercialize Products for the marketplace, as set forth
above. 
 Section 4. Consideration. 
 A. License Fee. 
 NimbleGen agrees to provide WARF with a ten percent (10%) share of the
outstanding Equity Interests (as the term is defined in the Equity Agreement) in NimbleGen in accordance with the terms of the Equity Agreement. 
 B. Royalty. 
 In addition to the Section 4A License Fee, NimbleGen agrees to pay to WARF as “earned royalties”
a royalty calculated as a percentage of the Selling Price of Products in accordance with the terms and conditions of this Agreement. The royalty is deemed 
  

 Page 2 of 15 

 earned as of the earlier of the date the Product is actually sold and paid for, the date an invoice is sent by NimbleGen
or its sublicensee(s), or the date a Product is transferred to a third party for any promotional reasons. The royalty shall remain fixed while this Agreement is in effect at the rate of [*] of the Selling Price of Products. 
 C. Minimum Royalty. 
 NimbleGen
further agrees to pay to WARF a minimum royalty of $25,000 per calendar year or part thereof during which this Agreement is in effect starting in calendar year 2002, against which any earned royalty paid for the same calendar year will be credited.
The minimum royalty for a given year shall be due at the time payments are due for the calendar quarter ending on December 31. It is understood that the minimum royalties will apply on a calendar year basis, and that sales of Products requiring
the payment of earned royalties made during a prior or subsequent calendar year shall have no effect on the annual minimum royalty due WARF for any given calendar year. 
 D. Patent Fees and Costs. 
 (i) NimbleGen also agrees to reimburse WARF for all reasonable costs
associated with filing, prosecuting and maintaining the Licensed Patents in the Licensed Territory. On or before
                        ,             , NimbleGen shall
provide WARF with a list of countries in which NimbleGen desires patent protection, and WARF shall file patent applications and pursue prosecution of patents in such countries as well as the patent applications listed in Appendix B. WARF reserves
the right to file patent applications and to pursue prosecution of such patents in additional countries at its own expense. WARF will provide NimbleGen with an invoice of the costs associated with the Licensed Patents in the Licensed Territory
annually beginning on August 31, 2001. NimbleGen shall reimburse WARF within thirty (30) days of the date of such invoice. NimbleGen shall pay all costs incurred in such patent prosecution through the date of termination of the Agreement
regardless of whether NimbleGen actually succeeds in selling a Product. 
 (ii) WARF has the right to control the filing, prosecution and
maintenance of the Licensed Patents with NimbleGen having the right to review and comment on such patent prosecution in the Licensed Territory. WARF agrees to furnish NimbleGen with copies of any documentation to be submitted in connection with the
filing or prosecution of any of the Licensed Patents reasonably in advance of such submission so as to give sufficient time for review and to incorporate reasonable modifications in such documentation proposed by NimbleGen which are not materially
adverse to WARF. WARF also agrees to promptly furnish NimbleGen with copies of any written communications received from the authorities handling such prosecutions. WARF will prosecute and validate all international, regional-phase and national
patent applications it files, until WARF reasonably determines that the continued prosecution is unlikely to result in the issuance of a patent in the relevant region or country, or that continued maintenance of such patent applications, or any
Licensed patent, is not merited. If WARF determines not to continue prosecution or maintenance of any patent, NimbleGen will have the right to do so at its expense, and WARF will give NimbleGen notice of such determination in reasonable time to
permit NimbleGen to meet any deadline with respect to such prosecution or maintenance. 
  

 Page 3 of 15 

 E. Accounting Payments. 
 (i) Amounts owing to WARF under Sections 2B or 4B shall be paid on a semi-annual basis, with such amounts due and received by WARF on or before the
sixtieth day following the end of the semi-annual period ending June 30 or December 31 in which such amounts were earned. The balance of any amounts which remain unpaid more than sixty (60) days after they are due to WARF shall accrue
interest until paid at the rate of the lesser of one percent (1%) per month or the maximum amount allowed under applicable law. However, in no event shall this interest provision be construed as a grant of permission for any payment delays.

 (ii) Except as otherwise directed, all amounts owing to WARF under this Agreement shall be paid in U.S. dollars to WARF at the address
provided in Section 16(a). All royalties owing with respect to Selling Prices stated in currencies other than U.S. dollars shall be converted at the rate shown in the Federal Reserve Noon Valuation – Value of Foreign Currencies on the day
preceding the payment. 
 (iii) A full accounting showing how any amounts owing to WARF under Section 2B and 4B have been calculated
shall be submitted to WARF on the date of each such payment. Such accounting shall be on a per country and product line, model or trade name basis and shall be summarized on the form shown in Appendix C of this Agreement. In the event no payment is
owed to WARF, a statement setting forth that fact shall be supplied to WARF. 
 Section 5. Certain Warranties of WARF.

 A. WARF warrants that except as otherwise provided under Section 14 of this Agreement with respect to U.S. Government interests, it is
the owner of the Licensed Patents or otherwise has the right to grant the licenses granted to NimbleGen in this Agreement. However, nothing in this Agreement shall be construed as: 
 (i) a warranty or representation by WARF as to the validity or scope of any of the Licensed Patents; 
 (ii) a warranty or representation that anything made, used, sold or otherwise disposed of under the license granted in this Agreement will or will not
infringe patents of third parties; or 
 (iii) an obligation to furnish any know-how not provided in the Licensed Patents or any services
other than those specified in this Agreement. 
 B. WARF MAKES NO REPRESENTATIONS, EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR
IMPLIED, AND ASSUMES NO RESPONSIBILITIES WHATSOEVER WITH RESPECT TO USE, SALE, OR OTHER DISPOSITION BY NIMBLEGEN, ITS SUBLICENSEES, OR THEIR VENDEES OR OTHER TRANSFEREES OF PRODUCTS INCORPORATING OR MADE BY USE OF INVENTIONS LICENSED UNDER THIS
AGREEMENT. 
  

 Page 4 of 15 

 Section 6. Recordkeeping. 
 A. NimbleGen and its sublicensee(s) shall keep books and records sufficient to verify the accuracy and completeness of NimbleGen’s and its
sublicensee(s)’s accounting referred to above, including without limitation inventory, purchase and invoice records relating to the Products of their manufacture. Such books and records shall be preserved for a period not less than six
(6) years after they are created during and after the term of this Agreement. WARF shall initially have a right to review the three (3) years records prior to the date of audit and, if a material discrepancy is discovered in such records,
to review the records of the three (3) years prior to the period audited for additional information or discrepancy. 
 B. NimbleGen and
its sublicensee(s) shall take all steps necessary so that WARF may within sixty (60) days of its request review and copy all the books and records at a single U.S. location to verify the accuracy of NimbleGen’s and its
sublicensee(s)’s accounting. Such review may be performed by any employee of WARF as well as by any attorney or registered CPA designated by WARF, upon reasonable notice and during regular business hours. 
 C. If a royalty payment deficiency is determined, NimbleGen and its sublicensee(s) shall pay the royalty deficiency outstanding within sixty
(60) days of receiving written notice thereof, plus interest on outstanding amounts as described in Section 4E(i). 
 D. If a
royalty payment deficiency for a calendar year exceeds five percent (5%) of the royalties paid for that year, then NimbleGen or its sublicensee(s) shall be responsible for paying WARF’s reasonable out-of-pocket expenses incurred with
respect to such review. 
 Section 7. Term and Termination. 
 A. The term of this license shall begin on the effective date of this Agreement and continue until this Agreement is terminated as provided herein or
until the earlier of the date that no Licensed Patent remains an enforceable patent or the payment of earned royalties under Section 2B and Section 4B, once begun, ceases for more than eight (8) calendar quarters. 
 B. NimbleGen may terminate this Agreement at any time by giving at least ninety (90) days’ written and unambiguous notice of such termination
to WARF. Such a notice shall be accompanied by a statement of the reasons for termination. 
 C. WARF may terminate this Agreement by giving
NimbleGen at least ninety (90) days’ written notice if the Date of First Commercial Sale does not occur on or before December 31, 2002. 
 D. WARF is required to conduct a certain level of due diligence to assess whether a licensee is a viable prospect for licensing and marketing products created with WARF owned patents. To that end, WARF customarily
requires, prior to execution of a license agreement, a business plan satisfactory to WARF setting forth at least the following: three years of projections, a reasonable 
  

 Page 5 of 15 

 plan for bringing products to market, an analysis of the competition and barriers to entry into the marketplace and a
summary of the talents of the people who will make up the organization. In this particular circumstance, it was not possible to obtain such a document prior to execution of the Agreement; however, WARF will require such a document. Therefore, WARF
may terminate this Agreement by giving NimbleGen at least ninety (90) days’ written notice if NimbleGen does not provide WARF with a business plan as described in this Section 7D on or before December 31, 1999. 
 E. WARF may terminate this Agreement by giving NimbleGen at least ninety (90) days’ written notice if, after Robert J. Palay is no longer the
principal executive officer (“CEO”) of NimbleGen, NimbleGen does not hire a Qualified CEO to serve as its CEO within six (6) months after the date Robert Palay ceases to be CEO. A Qualified CEO shall refer to and mean a person having
at least 3 years of experience as either a Vice-President, President, Chief Executive Officer, or other high level executive, with management responsibility in a business having capital assets in excess of $2,000,000, and a revenue stream in excess
of $5,000,000 per year. 
 F. WARF may terminate this Agreement by giving NimbleGen at least ninety (90) days’ written notice if
NimbleGen does not have capitalization of $2,000,000 on or before December 31, 2001. 
 G. If NimbleGen at any time defaults in the
timely payment of any monies due to WARF or the timely submission to WARF of any Development Report, fails to actively pursue the development plan, or commits any breach of any other covenant herein contained, and NimbleGen fails to remedy any such
breach or default within ninety (90) days after written notice thereof by WARF, or if NimbleGen commits any act of bankruptcy, becomes insolvent, is unable to pay its debts as they become due, files a petition under any bankruptcy or insolvency
act, or has any such petition filed against it which is not dismissed within sixty (60) days, or offers any component of the Licensed Patents to its creditors, WARF may, at its option, terminate this Agreement by giving notice of termination to
NimbleGen. 
 H. Upon the termination of this Agreement, NimbleGen and its sublicensee(s) shall remain obligated to provide an accounting for
and to pay royalties earned up to the date of the termination and any minimum royalties shall be prorated as of the date of termination by the number of days elapsed in the applicable calendar year. 
 Section 8. Assignability. 
 This
Agreement may not be transferred or assigned by NimbleGen except with the prior written consent of WARF, other than an assignment in connection with a transfer of all or substantially all of the assets of NimbleGen to a corporation owned at the time
of the assignment, directly or indirectly, by the same persons or entities as own NimbleGen provided such ownership is in substantially the same proportions as their ownership interests in NimbleGen. In the event of such an assignment, such
corporation shall become subject to all of the obligations of NimbleGen under this Agreement, and the references herein to NimbleGen shall be deemed to refer to such corporation. 
  

 Page 6 of 15 

 Section 9. Content of Validity. 
 In the event NimbleGen or its sublicensee(s) contests the validity of any Licensed Patent, NimbleGen and its sublicensee(s) shall continue to pay
royalties with respect to that patent as if such contest were not underway until the patent is adjudicated invalid or unenforceable by a court of last resort. 
 Section 10. Enforcement. 
 WARF intends to protect the Licensed Patents against infringers or
otherwise act to eliminate infringement, when, in WARF’s sole judgment, such action may be reasonably necessary, proper, and justified. In the event that NimbleGen believe there is infringement of any Licensed Patent under this Agreement which
is to NimbleGen’s substantial detriment, NimbleGen shall provide WARF with written notice that such infringement is occurring including reasonable evidence of the infringement. In the event that WARF does take action to abate the infringement,
it shall do so at its own expense. Upon request by WARF, NimbleGen shall take action, join in an action, and otherwise provide WARF with such assistance and information as may be useful to WARF in connection with WARF’s taking such action (if
the cause of action arose during the term of this Agreement and WARF reimburses NimbleGen for NimbleGen’s reasonable out-of-pocket expenses). Any recovery or damages for infringement derived through WARF taking such action shall be applied as
follows: (a) first, to WARF to reimburse WARF for the expenses of the litigation, including reasonable attorneys’ fees and any expenses of NimbleGen which have been or are to be reimbursed by WARF, and (b) second, to NimbleGen to
reimburse NimbleGen for its reasonable attorney’s fees, and the balance of any recovery or damages, except enhanced damages, shall be divided thirty percent (30%) to NimbleGen and seventy percent (70%) to WARF. If WARF does not take
action to abate the infringement of the Licensed Patents within six (6) months of receiving the notice described above, NimbleGen may either reduce the royalty owed on sales of Products under Section 3C in the country where the
infringement is occurring by fifty percent (50%) until such infringement is abated or NimbleGen may, with WARF’s written consent, bring an action to enforce the Licensed Patents. If NimbleGen chooses to bring an action against the
infringer of the Licensed Patents, it shall do so at its own expense and NimbleGen shall be entitled to seventy percent (70%) of any recovery or damages after repayment of NimbleGen and WARF’s reasonable out-of-pocket expenses and WARF
shall receive thirty percent (30%) of such net recovery or damages. 
 Section 11. Patent Marking. 
 NimbleGen and its sublicensee(s) shall insure that they apply patent markings that meet all requirements of U.S. law, 35 U.S.C. § 287, with respect
to all Products subject to this Agreement. 
 Section 12. Product Liability; Conduct of Business. 
 A. NimbleGen shall, at all times during the term of this Agreement and thereafter, indemnify, defend and hold WARF and the inventors of the Licensed
Patents harmless against all claims and expenses, including legal expenses and reasonable attorneys fees, arising out of the death of or injury to any person or persons or out of any damage to property and against any other claim, 
  

 Page 7 of 15 

 proceeding, demand, expense and liability of any kind whatsoever (other than patent infringement claims) resulting from
the production, manufacture, sale, use lease, consumption or advertisement of Products arising from any right or obligation of NimbleGen or any sublicensee hereunder. WARF at all times reserves the right to select and retain counsel of its own to
defend WARF’s interests. 
 B. NimbleGen warrants that it now maintains and will continue to maintain liability insurance coverage
appropriate to the risk involved in marketing the products subject to this Agreement and that such insurance coverage lists WARF and the inventors of the Licensed Patents as additional insureds. Within ninety (90) days after the execution of
this Agreement and thereafter annually between January 1 and January 31 of each year, NimbleGen will present evidence to WARF that the coverage is being maintained with WARF and its inventors listed as additional insureds. In addition,
NimbleGen shall provide WARF with at least thirty (30) days’ prior written notice of any change in or cancellation of the insurance coverage. 
 Section 13. Use of Names. 
 NimbleGen and its sublicensee(s) shall not use WARF’s name, the
name of any inventor of inventions governed by this Agreement, or the name of the University of Wisconsin in sales promotion, advertising, or any other form of publicity without the prior written approval of the entity or person whose name is being
used. 
 Section 14. United States Government Interests. 
 It is understood that if the United States Government (through any of its agencies or otherwise) has funded research, during the course of or under which
any of the inventions of the Licensed Patents were conceived or made, the United States Government is entitled, as a right, under the provisions of 35 U.S.C. § 200-212 and applicable regulations of Chapter 37 of the Code of Federal Regulations,
to a nonexclusive, nontransferable, irrevocable, paid-up license to practice or have practiced the invention of such Licensed Patents for governmental purposes. Any license granted to NimbleGen in this Agreement shall be subject to such right.

 Section 15. Miscellaneous. 
 This Agreement shall be governed by and construed in all respects in accordance with the laws of the State of Wisconsin without application of conflict of law principles. If any provisions of this Agreement are or
shall come into conflict with the laws or regulations of any jurisdiction or any governmental entity having jurisdiction over the parties of this Agreement, those provisions shall be deemed automatically deleted, if such deletion is allowed by
relevant law, and the remaining terms and conditions of this Agreement shall remain in full force and effect. If such a deletion is not so allowed or if such a deletion leaves terms thereby made clearly illogical or inappropriate in effect, the
parties agree to substitute new terms as similar in effect to the present terms of this Agreement as may be allowed under the applicable laws and regulations. The parties hereto are independent contractors and not joint venturers or partners.

  

 Page 8 of 15 

 Section 16. Notices. 
 Any notice required to be given pursuant to the provisions of this Agreement shall be in writing and shall be deemed to have been given at the earlier of
the time when actually received as a consequence of any effective method of delivery, including but not limited to hand delivery, transmission by telecopier, or delivery by a professional courier service or the time when sent by certified or
registered mail addressed to the party for whom intended at the address below or at such changed address as the party shall have specified by written notice, provided that any notice of change of address shall be effective only upon actual receipt.

  

			
	(a)	  	Wisconsin Alumni Research Foundation
		  	Attn: Managing Director
		  	614 Walnut Street
		  	Madison, Wisconsin 53705
		
	(b)	  	NimbleGen Systems LLC
		  	c/o Kenneth C. Hunt
		  	Godfrey & Kahn, S.C.
		  	780 North Water Street
		  	Milwaukee, Wisconsin 53202

 Section 17. Integration. 
 This Agreement constitutes the full understanding between the parties with reference to the subject matter hereof, and no statements or agreements by or
between the parties, whether orally or in writing, except as provided for elsewhere in this Section 17, made prior to or at the signing hereof, shall vary or modify the written terms of this Agreement. Neither party shall claim any amendment,
modification, or release from any provisions of this Agreement by mutual agreement, acknowledgement, or otherwise, unless such mutual agreement is in writing, signed by the other party, and specifically states that it is an amendment to this
Agreement. 
  

 Page 9 of 15 

 Section 18. Authority. 
 The persons signing on behalf of WARF and NimbleGen hereby warrant and represent that they have authority to execute this Agreement on behalf of the party
for whom they have signed. 
 IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the dates indicated below.

  

							
	WISCONSIN ALUMNI RESEARCH FOUNDATION	 		 	
				
	By:	 	 /s/ Richard H. Leazer
	 		 	Date: 9/29, 99
		 	Richard H. Leazer, Managing Director	 		 	
			
	NIMBLEGEN SYSTEMS LLC	 		 	
				
	By:	 	 /s/ Robert J. Palay
	 		 	Date: Sept 27, 99
			
	Name and Office: Robert J. Palay, Managing Member	 		 	
			
	Received by WARF’s Attorney:	 		 	
			
	 /s/ Elizabeth L.R. Donley
	 		 	Date: 9/27, 1999
	Elizabeth L. R. Donley, Esq.	 		 	

 (WARF’s attorney shall not be deemed a signatory to this Agreement.) 
 WARF Ref: Cerrina-P98077US/WO 
  

 Page 10 of 15 

 APPENDIX A 
 A. “Licensed Patents” shall refer to and mean those patents and patent applications listed on Appendix B attached hereto that are in countries in the Licensed Territory and any subsequent patent application
owned by WARF in a country in the Licensed Territory but only to the extent it claims an invention claimed in a patent application listed on Appendix B. 
 B. “Products” shall refer to and mean any and all machines, apparatus or other products that employ or are in any way produced by the practice of an invention claimed in the Licensed Patents or that would
otherwise constitute infringement of any claims of the Licensed Patents. 
 C. “Date of First Commercial Sale” shall mean the date
when cumulative sales to the retail market of Products exceeds $200,000. 
 D. “Selling Price” shall mean [*]. The “Selling
Price” for a Product that is transferred to a third party for promotional purposes without charge or at a discount shall be the average invoice price to the retail customer of that type of Product during the applicable calendar quarter. WARF is
exempt from paying income taxes under U.S. law. Therefore, all payments due under this Agreement shall be made without deduction for taxes, assessments, or other charges of any kind which may be imposed on WARF by an government outside of the United
States or any political subdivision of such government with respect to any amounts payable to WARF pursuant to this Agreement. All such taxes, assessments, or other charges shall be assumed by NimbleGen. 
 E. “Development Report” shall mean a written account of NimbleGen’s progress under the development plan having at least the information
specified on Appendix D to this Agreement, and shall be sent to the address specified in Appendix D. 
 F. “Licensed Field” shall
be limited to the field of machines, apparatus, or other products that employ or are in any way produced by the practice of an invention claimed in the Licensed Patents or that would otherwise constitute infringement of any claims of the Licensed
Patents. 
 G. “Licensed Territory” shall be worldwide unless WARF files its own patent application(s) in countries outside those
chosen and paid for by NimbleGen under Section 4D. In such case, those countries shall be excluded from the Licensed Territory hereunder. 
 H. “Equity Agreement” shall mean the Agreement entered into by WARF and NimbleGen of even date herewith containing terms and conditions under which the Units shall be issued to WARF as required by Section 4A. 
  

 Page 11 of 15 

 APPENDIX B 
 LICENSED PATENTS 
  

									
	 REFERENCE
 NUMBER
	 	COUNTRY	 	 PATENT
 NUMBER
	 	ISSUE DATE	 	 APPLICATION
 SERIAL
 NUMBER

	
	Method and Apparatus for Synthesis of Arrays of DNA Probes (Francesco Cerrina,
Michael R. Sussman, Frederick R.
Blattner, Sangeet Singh-Gasson, Roland D. Green)
					
	P98077US	 	United States	 		 		 	09/253,460
	P98077WO	 	PCT-All	 		 		 	US99/03807
	
	Flow Cell Reaction Chamber for Maskless Imaging DNA Array Synthesizer (Sangeet
Singh-Gasson, Yongjian Yue, Roland
D. Green)
					
	P99318US	 	United States	 		 		 	

  

 Page 12 of 15 

 APPENDIX C 
 WARF ROYALTY REPORT 
  

									
	Licensee:
                                        
                           	  	Agreement No.:
                                        
                       
	Inventor:
                                        
                           	  	P#:
        P                                
                                        
  
	Period Covered:        From            /            / 
           	  	Through:
                    /            /       
                                 
	Prepared By:
                                        
                    	  		  	Date:
                             
	Approved By:
                                        
                   	  		  	Date:
                             

 If license covers several major product lines, please prepare a separate report 
 for each line. Then combine all product lines into a summary report. 
  

					
	Report Type:	  	 ̈	  	Single Product Line
Report:                                       
                                        
             
		  	 ̈	  	Multiproduct Summary Report.   Page             1 of      Pages
		  	 ̈	  	Product Line Detail. Line:        
Tradename:                 Page:    
	Report Currency:	  	 ̈	  	U.S. Dollars              ̈   Other
                                        
                                        
        

  

													
	 Country
	  	Gross
Sales	  	Less
Allowances	  	Net Sales	  	Royalty
Rate	  	Period Royalty Amount
	  	  	  	  	  	This Year	  	Last Year
	 U.S.A.
	  		  		  		  		  		  	
	 Canada
	  		  		  		  		  		  	
	 Europe:
	  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
	 Japan
	  		  		  		  		  		  	
	 Other:
	  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  		  		  		  		  		  	
		  	 	  	 	  	 	  	 	  	 	  	 
	TOTAL:	  		  		  		  		  		  	
		  	 	  	 	  	 	  	 	  	 	  	 

 Total
Royalty:                     Conversion
Rate:                     Royalty in U.S. Dollars: $            

 The following royalty forecast is non-binding and for WARF’s internal planning purposes only: 
 Royalty Forecast Under This Agreement:   Next Quarter:     Q2:     Q3:    
Q4:     
  

	*	On a separate page, please indicate the reasons for returns or other adjustments if significant. 

 Also note any unusual occurrences that affected royalty amounts during this period. 
 To assist WARF’s forecasting, please comment on any significant expected trends in sales volume. 
  

 Page 13 of 15 

 APPENDIX D 
 DEVELOPMENT REPORT 
  

	A.	Date development plan initiated and time period covered by this report. 

  

	B.	Development Report (4-8 paragraphs). 

  

	 	1.	Activities completed since last report including the object and parameters of the development, when initiated, when completed and the results. 

  

	 	2.	Activities currently under investigation, i.e., ongoing activities including object and parameters of such activities, when initiated, and projected date of completion.

  

	C.	Future Development Activities (4-8 paragraphs). 

  

	 	1.	Activities to be undertaken before next report including, but not limited to, the type and object of any studies conducted and their projected starting and completion dates.

  

	 	2.	Estimated total development time remaining before a product will be commercialized. 

  

	D.	Changes to initial development plan (2-4 paragraphs). 

  

	 	1.	Reasons for change. 

  

	 	2.	Variables that may cause additional changes. 

  

	E.	Items to be provided if applicable: 

  

	 	1.	Information relating to Product that has become publicly available, e.g., published articles, competing products, patents, etc. 

  

	 	2.	Development work being performed by third parties other than NimbleGen to include name of third party, reasons for use of third party, planned future uses of third parties including
reasons why and type of work. 

  

	 	3.	Update of competitive information trends in industry, government compliance (if applicable) and market plan. 

 PLEASE SEND DEVELOPMENT REPORTS TO: 
 Wisconsin
Alumni Research Foundation 
 Attn: Contract Coordinator 
 614 Walnut Street 
 P. O. Box 7365 
 Madison, WI 53707-7365 
  

 Page 14 of 15 

 APPENDIX E 
 DEVELOPMENT PLAN 
 A development plan of the scope outline below shall be submitted to WARF by
NimbleGen prior to the execution of this agreement. In general, the plan should provide WARF with a summary overview of the activities that NimbleGen believes are necessary to bring Products to the marketplace. 
  

					
	 	 	Estimated
Start Date	  	Finish Date

  

	I.	Development Program 

  

	 	A.	Development Activities to be Undertaken 

 (Please break
activities into subunits with the date of completion in major milestones) 
 1. 
 2. 
 . 
 . 
  

	 	B.	Estimated Total Development Time 

  

	II.	Governmental Approval 

  

	 	A.	Types of submissions required 

  

	 	B.	Government agency e.g. FDA, EPA, etc. 

  

	III.	Proposed Market Approach 

  

	IV.	Competitive Information 

  

	 	A.	Potential Competitors 

  

	 	B.	Potential Competitive Devices/Compositions 

  

	 	C.	Known Competitor’s plans, developments, technical achievements 

  

	 	D.	Anticipated Date of Product Launch 

 Total Length: approximately 2-3
pages 
  

 Page 15 of 15

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