Document:

exv10w6

Exhibit 10.6

THERMAL CYCLER SUPPLIER

AGREEMENT

     This Agreement, is entered into as of December 22, 2004, (the “Effective Date”) by and between
Applera Corporation, a corporation of the State of Delaware, through its Applied Biosystems Group,
having an office at 850 Lincoln Centre Drive, Foster City, California 94404 (collectively, “ABI”),
and BioTrove, Inc., having an office at 12 Gill Street, Suite 4000, Woburn, Massachusetts 01801
(“Thermal Cycler Supplier”) hereafter each a
“Party,” collectively referred to as “the Parties.”

     WHEREAS, ABI has the power to convey certain limited rights for research and in certain other
fields under U.S. Patents Nos. 4,683,195, 4,683,202 and 4,965,188, describing and claiming gene
amplification processes including, among others, a process known as the polymerase chain reaction
(“PCR”) process, which are owned by Roche Molecular Systems, Inc., and amplification process claims
in corresponding counterpart patents and patent applications in other countries, owned by F.
Hoffmann-La Roche Ltd (both of which are referred to collectively herein as “Roche”).

     WHEREAS, ABI offers to PCR users certain commercial and non-commercial license rights under
these patents and patent applications for the automated performance of the PCR process for research
and certain other fields that include, inter alia, an up-front fee component based
on the capacity of thermal cyclers used to perform the process.

     WHEREAS, ABI offers to thermal cycler suppliers license rights under those patents, namely, an
authorization to distribute their instruments with a label conveying to their customers rights
under the up-front fee component of the PCR licenses described above, and the right to promote
their instruments as “Authorized Thermal Cyclers” (as defined below) for PCR.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

 

 

     WHEREAS, ABI owns U.S. Patents Nos. 5,038,852 and 5,333,675, describing and claiming automated
apparatus suitable for performing the PCR process, and apparatus claims in corresponding
counterpart patents and patent applications in other countries.

     WHEREAS, ABI owns U.S. Patent Nos. 5,475,610 and 6,703,236 B2, describing and claiming
improvements in thermal cycling apparatus for PCR, including a pressing heated cover, and
corresponding counterpart patents and patent applications in other countries.

     WHEREAS, ABI owns U.S. Patent No. 5,656,493, describing and claiming an amplification system
comprising PCR reagents and a thermal cycler programmed to carry out a PCR protocol.

     WHEREAS, ABI owns patents and applications outside the U.S. that claim priority of U.S.
application Serial No. 899,061 (filed in 1986) and that claim automated performance of the PCR
process using certain programmed thermal cyclers.

     WHEREAS, ABI offers to PCR users license rights for research and certain other fields under
its U.S. Patent No. 5,656,493 amplification system claims and under the automated method claims of
its foreign patents and applications claiming priority of U.S. application Serial No. 899,061
respectively, and offers to thermal cycler suppliers the right to pass such rights to their thermal
cycler customers.

     WHEREAS, ABI has offered to Thermal Cycler Supplier the above Roche process rights claimed by
U.S. Patents Nos. 4,683,195; 4,683,202 and 4,965,188 and corresponding amplification process claims
in patents and patent applications in other countries claiming
priority of any of them, and the ABI systems, apparatus, automated method and pressing heated
cover rights under the other patents and patent applications enumerated above separately or in
combinations, and

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

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     WHEREAS, Thermal Cycler Supplier has requested all the foregoing license rights in
combination. No other license rights (including, without limitation, any rights under patents and
applications of Applera Corporation or Roche that cover apparatus, methods, or reagents useful for
real-time detection or for homogeneous assay) are requested by Thermal Cycler Supplier or are
granted by ABI to Thermal Cycler Supplier.

     NOW, THEREFORE, the Parties agree as follows:

     1. Definitions

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

          1.1 “Affiliate” shall mean, with respect to a Party, any Person that, directly or indirectly
through one or more intermediaries, controls, is controlled by, or is under common control with,
such Person; where “control” refers to the ownership, directly or indirectly, of at least fifty
percent (50%) (or maximum amount permitted by applicable law) of the voting securities or other
ownership interests of such a Person or Party. As used herein, the term “Person” shall mean an
individual, corporation, trust, partnership, limited liability company, joint venture,
unincorporated organization, government agency or any agency or political subdivision thereof, or
other entity.

          1.2 “Amplification Patent Rights” shall mean the nucleic acid amplification processes,
including particularly the PCR process, covered by Valid Claims of United States Patents Nos.
4,683,195, 4,683,202 and 4,965,188; and any corresponding amplification process

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

3

 

Valid Claim in
patents and patent applications in other countries claiming priority of any of them. Amplification
Patent Rights include rights only under the foregoing identified Roche
patents and applications. They do not include rights, expressly or by implication, under any
other Roche or ABI patent or application, or to any claim to reagents, apparatus, or a system of
reagents and apparatus.

          1.3 “Amplification System Patent Rights” shall mean Valid Claims of U.S. Patent No. 5,656,493,
which describes and claims an amplification system comprising PCR reagents and a thermal cycler
programmed to carry out a PCR protocol. Amplification System Patent Rights include rights only
under the identified ABI patent. They do not include rights, expressly or by implication, under
any other Roche or ABI patent or application, or to any claim to reagents, apparatus, or an
amplification process, even if that process is a result of the natural and intended operation of
the system.

          1.4 “Authorized Reagent” shall mean a DNA polymerase whose use in performance of the PCR
process is covered by the running-royalty component of a PCR process license under the
Amplification Patent Rights for internal research and development. The running-royalty component of
that license may be obtained through the purchase of reagents bearing a valid label conveying the
running-royalty component; alternatively, it may be purchased from ABI. Other PCR process licenses
in the Fields also require use of Authorized Reagents.

          1.5 “Authorized Thermal Cycler” shall mean a Thermal Cycler or Temperature Cycling Instrument
whose use in automated performance of the PCR process is covered by the automated-capacity,
up-front fee component of a PCR process license under the Amplification Patent Rights for internal
research and development. The up-front fee component

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

4

 

of that license may be obtained through the
purchase of a Thermal Cycler or Temperature Cycling Instrument bearing a valid label conveying the
up-front component; alternatively, it may
be purchased from ABI. Other PCR process licenses in the Fields also require use of an
instrument whose use is similarly covered, i.e., an “Authorized Thermal Cycler.”

          1.6 “Automated Method Patent Rights” shall mean automated method Valid Claims in ABI’s patents
and applications outside the U.S. that claim priority of U.S. application Serial No. 899,061.
Automated Method Patent Rights include rights only under the identified ABI patents and
applications. They do not include rights, expressly or by implication, under any other Roche or
ABI patent or application, or to any claim to reagents, apparatus or system of reagents and
apparatus.

          1.7 “Fields” shall mean research and development, quality assurance or control, environmental
testing, plant diagnostics, identity testing (other than parentage testing for humans) and
forensics. The term Fields specifically excludes human and veterinary diagnostics.

          1.8 “Net Sales Price” shall mean

	 	(a)	 	the gross invoice price for an arm’s-length
sale of royalty-bearing (pursuant to Article 3 herein) product to an
unrelated, third-party end user by Thermal Cycler Supplier, its
Affiliates or distributors, minus the following deductions where
applicable: (i) discounts allowed and taken, in amounts customary in
the trade, and (ii) sales and/or use taxes and/or duties for particular
sales. No allowance or deduction shall be made for commissions or
collections, by whatever name known.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

5

 

     For the purposes of this definition, an arms-length sale to an unrelated third-party end-user
is one in which (i) such end-user does not enjoy any special course of dealing with Thermal Cycler
Supplier, its Affiliates or distributors, (ii) such end-user does not provide any
nonmonetary consideration for a royalty bearing product (under Article 3 herein), and (iii)
the gross invoice price in such sale of product is not affected by any other purchase of goods or
services or any license of intellectual property (other than the end-user rights conveyed in
Article 2 herein).

	 	(b)	 	Net Sales Price shall be calculated as set
forth in this Section 1.8(b) in the case of a transfer (e.g., sale,
loan, lease, consignment, gift or distribution) of royalty-bearing
products (under Article 3 herein) not within the scope of Section
1.8(a), including, without limiting the foregoing, in the event of any
transfer (i) to an end user that is Thermal Cycler Supplier itself, an
Affiliate or a distributor, (ii) to an end user that enjoys a special
course of dealing with one or more of the Thermal Cycler Supplier, an
Affiliate or distributor, or (iii) under a reagent rental agreement.
Net Sales Price for transfer of royalty-bearing products that are
subject to this Section 1.8(b) shall equal the Average Net Sales Price
(as such term is defined below). As used herein the term “Average Net
Sales Price” shall mean

	 	(A)	 	the average Net Sales Price
calculated for sales under Section 1.8(a) over the one-year
period preceding the date of such transfer that is within this
Section 1.8(b) of the same type and model of product and in the
same country as such transferee;

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

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	 	(B)	 	if such one-year average Net
Sales Price data is unavailable, then the Thermal Cycler
Supplier’s, Affiliate’s or distributor’s published list price of
such product for end-users in the same country as the
transferee, or
	 
	 	(C)	 	if data is unavailable under part
(A) or (B), then the fair market value (with reference to the
sales price of comparable products).

               In the event Thermal Cycler Supplier is [***], the Net Sales Price shall be calculated as the price
to the [***] (as determined in Section [***] or
[***] ) [***] margin [***].

          1.9 “Pressing Heated Cover Patent Rights” shall mean Valid Claims within claims 160-163 and
167 of U.S. Patent No. 5, 475,610 and Valid Claims within claims 1-6 of U.S. Patent No. 6,703,236
B2, and foreign equivalent Valid Claims of any said claims in other countries. Pressing Heated
Cover Patent Rights include rights only under the identified ABI patents and applications. They do
not include rights under any other claims of said patents and applications. They do not include
rights, expressly or by implication, under any other patent or application of Roche or ABI or
rights to any process, reagents, thermal cycler or system of reagents and a thermal cycler.

          1.10 “Pressing Heated Cover” shall mean a product that but for the licenses granted hereunder
would infringe the Pressing Heated Cover Patent Rights.

          1.11 “Temperature Cycling Instrument” as used in this Agreement, shall mean an instrument,
whether in single or multiple modules, that includes a Thermal Cycler and additional structure for
performing one or more other functions.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

7

 

          1.12 “Territory” shall mean worldwide.

          1.13 “Thermal Cycler,” as used in this Agreement, shall mean an instrument, whether in single
or multiple modules, that is capable in itself of automatically thermally cycling samples in the
PCR process.

          1.14 “Thermal Cycling Instrument Patent Rights” shall mean Valid Claims of U.S. Patent Nos.
5,038,852 and 5,333,675; and foreign equivalent Valid Claims of any such apparatus claims in other
countries. Thermal Cycling Instrument Patent Rights include rights only under the identified ABI
patents and applications. They do not include rights, expressly or by implication, under any other
ABI or Roche patent claim to reagents, an amplification process or a system of reagents and
apparatus.

          1.15 “Third Party” shall mean a party other than the Parties.

          1.16 “Valid Claim” shall mean a claim of a patent or pending patent application that has not
been held unpatentable, invalid or unenforceable pursuant to a final and unappealable decision of a
court or other applicable administrative agency with appropriate jurisdiction.

     2. Grant

          2.1 Thermal Cycling Instrument Patent Rights and Pressing Heated Cover Patent Rights.
Upon the terms and subject to the exceptions and conditions of this Agreement, ABI grants to
Thermal Cycler Supplier under the Thermal Cycling Instrument Patent Rights and the Pressing Heated
Cover Patent Rights a personal, non-transferable, royalty-bearing, non-exclusive license in the
Fields and in the Territory to make but not have made, to use and to sell Thermal Cyclers,
Temperature Cycling Instruments and add-on and substitute sample blocks to end users solely under
Thermal Cycler Supplier’s name and trademarks but not otherwise to manufacture for, or to sell or
distribute to, thermal cycler suppliers.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

8

 

     The grant of this Section 2.1 conveys no right or immunity, express or implied, under the
Amplification Patent Rights, the Automated Method Patent Rights or the Amplification System Patent
Rights.

          2.2 Amplification Patent Rights. Upon the terms and subject to the exceptions and
conditions of this Agreement, ABI grants to Thermal Cycler Supplier the following personal,
non-transferable, royalty-bearing, non-exclusive rights in the Territory under the Amplification
Patent Rights:

	 	(a)	 	Thermal Cycler Supplier is hereby authorized to
sell and distribute to end users solely under Thermal Cycler Supplier’s
name and trademarks Thermal Cyclers and Temperature Cycling Instruments
manufactured by Thermal Cycler Supplier, but not otherwise to sell or
distribute to thermal cycler suppliers, with a label conveying to end
users (including Thermal Cycler Supplier itself) in the Fields the
up-front rights of PCR process licenses under the Amplification Patent
Rights as specified in the label set forth in Section 5.1 below, that
is, with an Authorized Thermal Cycler label;
	 
	 	(b)	 	Thermal Cycler Supplier may advertise and
promote Thermal Cyclers and Temperature Cycling Instruments so labeled
as “Authorized Thermal Cyclers for PCR.”

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

9

 

     The grant of this Section 2.2 conveys no right or immunity, express or implied, under the
Thermal Cycling Instrument Patent Rights, the Amplification System Patent Rights, the Automated
Method Patent Rights or the Pressing Heated Cover Patent Rights.

          2.3 Amplification System Patent Rights and Automated Method Patent Rights. Upon the
terms and subject to the exceptions and conditions of this Agreement, ABI grants to Thermal Cycler
Supplier a personal, non-transferable, royalty-bearing, non-exclusive right under the Amplification
System Patent Rights and the Automated Method Patent Rights to convey to end-user customers
(including Thermal Cycler Supplier itself) of Thermal Cycler Supplier’s Thermal Cyclers and
Temperature Cycling Instruments sold or distributed solely under Thermal Cycler Supplier’s name and
trademarks a non-exclusive license to use the same in the Fields in the Territory. The grant of
this Section 2.3 includes no right or immunity, express or implied, under the Amplification Patent
Rights, Thermal Cycling Instrument Patent Rights or the Pressing Heated Cover Patent Rights.

          2.4 No Implied Rights. Except as expressly provided under Sections 2.1 through 2.3,
no right, immunity, authorization or license is granted, expressly by implication or by estoppel,
for any other purpose, or in any other field. Without limiting the foregoing, no right, immunity,
authorization or license is granted to make, have made, use or sell any polymerase (such as Taq),
amplification reagent or kit; or to perform PCR or nucleic acid amplification that is not fully
licensed under the Amplification Patent Rights. No right,

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

10

 

immunity, authorization or license is
granted, expressly, by implication, or by estoppel, under any patent or patent application that is
not expressly included in the Amplification Patent Rights, the Amplification System Patent Rights,
the Pressing Heated Cover Patent Rights, the Automated Method Patent Rights or the Thermal Cycling
Instrument Patent Rights. No right, immunity, authorization or license is granted, expressly, by
implication or by estoppel, under patents and applications of Applera Corporation or Roche that
cover apparatus, methods, or reagents for real-time detection (including, without limitation, U.S.
Patents Nos. 5,928,907 and
6,814,934 B1 or Applera’s Japanese Patent No. JP 3136129, European Patent No. EP 0 872 562 Bl,
and claims in Applera’s patents and applications that claim priority of United States patent
application Serial No. 08/968,208 or EP 0 512 334 B1) or for homogeneous assay (including, without
limitation, U.S. Patents Nos. 5,210,015; 5,487,972; 5,538,848, all related to the 5’ nuclease
assay).

          2.5 Exceeding Scope of License. Rights granted to Thermal Cycler Supplier by this
Agreement are personal to Thermal Cycler Supplier alone. Thermal Cycler Supplier shall have no
right to sublicense, assign or otherwise transfer or share its rights hereunder except as set forth
in Section 2.3 of this Agreement. Without limiting other acts or omissions constituting material
breach hereof, any breach of Article 2 (including without limitation, any act, omission or sale by
Thermal Cycler Supplier that infringes or induces infringement of one or more of the patents
licensed hereunder, which act, omission, or sale exceeds the scope of the license set forth in
Section 2.1, including without limitation the field limitations or the prohibition on selling
instruments that bear the trademarks of a party other than those of Thermal Cycler Supplier) by
Thermal Cycler Supplier shall (without limiting any other causes of action ABI or Roche may have)
be deemed a material breach of this Agreement.

          2.6 Sales by Affiliates or Distributors. Notwithstanding the prohibition of Section
2.5, Thermal Cycler Supplier’s rights to sell to end users under the grants of Sections 2.1 through
2.3 include the right to sell through Affiliates (so long as Thermal Cycler Supplier reports and
pays under this Agreement on their behalf) and through distributors of Thermal Cycler Supplier and
such Affiliates, as well as directly.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

11

 

          2.7 Thermal Cycler Supplier Obligations. The Parties understand and agree that
Thermal Cycler Supplier shall have no obligation to monitor or police its customers’ use of
Authorized Reagents in the performance of PCR. Thermal Cycler Supplier’s obligations under
this Agreement in regard to Authorized Reagents shall be limited to providing the notice as
specified in Sections 5.1 and 5.2. However, Thermal Cycler Supplier agrees not to knowingly
promote, directly or through its distributors or Affiliates, the unlicensed performance of PCR
through the use of reagents which are not Authorized Reagents or, in the Fields, by means of
Thermal Cyclers for which the up-front license fee has not been paid (i.e. a thermal cycler that is
not an Authorized Thermal Cycler). Further, Thermal Cycler Supplier shall not sell thermal cyclers
or thermal cycling instruments of a Third Party that infringe the Thermal Cycling Instrument Patent
Rights or the Pressing Heated Cover Patent Rights.

     3. Fees, Royalties, Records and Reports

          3.1 Fees; Royalties. For the licenses and rights granted under Article 2, Thermal
Cycler Supplier shall pay to ABI:

	 	(a)	 	[***];
	 
	 	(b)	 	for each Thermal Cycler (including all modules
and components) or Temperature Cycling Instrument delivered, invoiced
or otherwise transferred by Thermal Cycler Supplier or an Affiliate
after the Effective Date, [***];

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

12

 

	 	(c)	 	for each add-on or substitute block delivered,
invoiced or otherwise transferred by Thermal Cycler Supplier or an
Affiliate after the Effective Date, [***];
	 
	 	(d)	 	[***] for each Pressing Heated Cover delivered,
invoiced or otherwise transferred by Thermal Cycler Supplier or an
Affiliate after the Effective Date, irrespective of whether said
Pressing
Heated Cover is transferred separately or included in a larger module
or in a Thermal Cycler or Temperature Cycling Instrument.

     ABI agrees that there shall be only one payment under each of subsections 3.1(b), 3.1(c) and
3.1(d), for each Thermal Cycler or Temperature Cycling Instrument placed as a no-charge “loaner” or
demonstration instrument. Thermal Cycler Supplier shall pay for such an instrument based on the
Average Net Sales Price when it is first put into use as a loaner or demonstration instrument.
However, if any module, or component is subsequently added or substituted, payment under
subsections 3.1(c) and 3.1(d) shall be made for such module or component.

     Payments specified in this Section 3.1(b)-(d) shall be paid as specified in Section 3.4 and
3.5. Each Thermal Cycler and Temperature Cycling Instrument for which those payments are paid shall
be an Authorized Thermal Cycler and shall be so designated pursuant to Article 5 hereof.

          3.2 Currency. All amounts payable hereunder shall be payable in United States
Dollars. Royalties invoiced or received by Thermal Cycler Supplier in currencies other than U.S.
Dollars shall be converted to U.S. Dollars based on the New York rate of exchange as quoted in the
Wall Street Journal for the last business day of the applicable quarter (as per

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

13

 

Section 3.4 herein)
in which the sale or transfer occurred. If not so published, the Parties may agree on a substitute
publication. In the event there is no comparable publication, the applicable rate for such date by
the appropriate governmental agency in such country shall apply.

          3.3 Maintenance of Records; Audit. Thermal Cycler Supplier shall keep and maintain
(and shall require its Affiliates to keep and maintain) complete and accurate records and in
sufficient detail to enable an independent certified public accountant or auditor retained by
ABI to validate Thermal Cyclers Supplier’s compliance with this Agreement and verify amounts
payable by Thermal Cycler Supplier. To the extent such records are financial in nature or relate
to royalty obligations, such records shall be compiled and maintained in accordance with Generally
Accepted Accounting Principles (“GAAP”). Thermal Cycler Supplier shall keep and maintain such
records and supporting data during the term of this Agreement hereof and for a period of [***]
thereafter. Such records and the supporting data shall be available for inspection and copying,
for a period of [***] (and access shall not be denied thereafter, if reasonably available), during
regular business hours by an independent certified public accountant or auditor retained by ABI.
ABI shall enter into a confidentiality agreement with such accountant or auditor that will require
such accountant or auditor to use such data and records solely for the purposes of verifying
Thermal Cycler Supplier’s compliance with its royalty obligations. Such confidentiality agreement
shall require that such accountant or auditor agrees not to disclose such records or data to any
party other than ABI or Thermal Cycler Supplier. If in dispute, such records shall be kept at
least until the dispute is settled. Inspection and auditing shall be at ABI’s expense, unless the
audit demonstrates that the amount payable that is stated in a report is understated by [***], in
which case Thermal Cycler Supplier shall reimburse ABI for the expense of such audit.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

14

 

          3.4 Mode of Royalty Payments; Royalty Reports. Thermal Cycler Supplier shall within
thirty (30) days after the first of January, April, July and October

	 	(a)	 	pay ABI royalties due under this Agreement for
each preceding three (3) month period, and
	 
	 	(b)	 	provide ABI with a true and accurate written
royalty report detailing the amount of royalties due for each such
three (3) month
period. Such royalty report shall be on a country-by-country basis
and shall detail for such period

	 	 	 	i            the quantity and
type of Thermal Cycler, Temperature Cycling Instrument
or other products subject to royalty obligations
pursuant to Article 3 herein sold or transferred;
	 
	 	 	 	ii            for sales within
Section 1.8(a) the gross amounts invoiced by Thermal
Cycler Supplier, its Affiliates and distributors on
account of such sales of such Thermal Cycler,
Temperature Cycling Instrument or other royalty-bearing
products, and all deductions (that are permitted
pursuant to the Net Sales Price definition) applied to
such gross receipts, and the Net Sales Price for all
such sales;
	 
	 	 	 	iii            for sales or
transfers within Section 1.8(b) such reports shall
indicate how the royalty obligation was determined, with
sufficient detail to allow ABI to verify the method and
accuracy of such determination.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

15

 

     Without limiting the foregoing, such royalty reports shall he in accordance with, and include
all information specified in, the royalty report form attached hereto as Appendix A.

     The correctness and completeness of each royalty report shall be attested to in writing by the
responsible financial officer of Thermal Cycler Supplier or by Thermal Cycler Supplier’s external
auditor.

     Each royalty report and payment shall be sent by the due date to the following address:

Applied Biosystems

850 Lincoln Centre Drive

Foster City, California, 94404 U.S.A.

Attention: Director of Licensing

or to any address that ABI may advise in writing.

          3.5 Interest. If Thermal Cycler Supplier shall fail to pay any amount owing under
this Agreement by the due date, the amount owed shall bear interest at [***] from the due date
until paid, provided, however, that if this interest rate is held to be unenforceable for any
reason, the interest rate shall be the maximum rate allowed by law at the time the payment is due.

          3.6 Termination. Failure of Thermal Cycler Supplier to pay any amount specified under
this Agreement within thirty (30) days after the due date will automatically terminate this
Agreement.

          3.7 Expiration of Patent Rights. For the purpose of this Agreement, upon expiration
of all patents included in the [***], the dollar amount stated in Section [***] shall be [***] thereafter to [***], at which point the dollar amount stated in Section [***] shall be [***] thereafter to [***] under Section [***] under Sections [***]
and [***] shall not be affected.

     After expiration of the [***] under Sections [***] and [***] shall
be [***] to the amount [***] for the remaining [***].

     Royalties under Section [***] for [***] under the [***] shall be due only so long as at least [***] is in effect and shall not be[***].

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

16

 

     4. Past Sales and Activities

          4.1 Covenant Not to Assert; Retroactive License. Subject to Section 4.2 herein, in
consideration of the payments as set forth in parts (a) and (b) of this Section 4.1, Prior Sales
shall be deemed to have been licensed pursuant to this Agreement. As used herein, the term “Prior
Sales” shall mean products that were delivered, invoiced, sold or otherwise
transferred, prior to the Effective Date, by Thermal Cycler Supplier solely under Thermal
Cycler Supplier’s own name and trademarks to end-user customers, directly or through its Affiliates
or distributors, which products would be within the scope of the licenses granted pursuant to
Article 2 herein had such products been invoiced, sold or otherwise transferred by Thermal Cycler
Supplier after the Effective Date. Thermal Cycler Supplier shall pay ABI the royalties and other
fees set forth in Section 3.1(b) through 3.1 (d) with respect to Prior Sales according to the
following schedule:

	 	(a)	 	for such products so delivered, invoiced or
otherwise transferred by Thermal Cycler Supplier up to thirty (30) days
before the Effective Date of this Agreement, such sums shall be paid on
the Effective Date, and
	 
	 	(b)	 	for such products so delivered, invoiced or
otherwise transferred by Thermal Cycler Supplier after such thirty (30)
day period but prior to the Effective Date, the royalties and other
fees due under Section 3.1(b)-3.1(d) of this Agreement shall be paid
within fifteen (15) days following the Effective Date.

     In consideration of all such payments Thermal Cyclers and Temperature Cycling Instruments
covered by this section shall be considered Authorized Thermal Cyclers subject to

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

17

 

the conditions of Section 4.2 and 5.4; and all earlier use of such Thermal Cyclers or
Temperature Cycling Instruments by customers, direct or indirect, of Thermal Cycler Supplier shall
be deemed to have been use of a Thermal Cycler or Temperature Cycling Instrument within the grant
of this Agreement. The payments and obligations of this section do not apply to Thermal Cyclers or
Temperature Cycling Instruments already authorized by PCR users.

          4.2 Notification to End Users. Thermal Cycler Supplier shall send to the original
end-user customers of the Thermal Cyclers or Temperature Cycling Instruments that are the subject
of Section 4.1, Authorized Thermal Cycler notices in accord with Sections 5.1, and 5.2 with a means
reasonably satisfactory to ABI to relate each such notice to the appropriate Thermal Cycler or
Temperature Cycling Instrument. Any such Thermal Cycler or Temperature Cycling Instrument not
having an authorization notice within one-hundred and twenty (120) days after the Effective Date of
this Agreement shall cease to be an Authorized Thermal Cycler unless Thermal Cycler Supplier
establishes to the reasonable satisfaction of ABI that (a) the Thermal Cycler or Temperature
Cycling Instrument falls within Section 4.1 and (b) the Authorized Thermal Cycler notice for the
Thermal Cycler or Temperature Cycling Instrument has not been applied to another instrument.

     5. Authorization Notice

          5.1 Patent Notice. Thermal Cycler Supplier agrees to include prominently in the front
of the user’s manual for each Authorized Thermal Cycler, and for no other Thermal Cycler or
Temperature Cycling Instrument, a notice (“Notice”) as specified from time to time by ABI. Unless
and until ABI reasonably instructs differently, the Notice shall be:

Authorized Thermal Cycler

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act.

18

 

This instrument, Serial No.                     , is an Authorized Thermal Cycler. Its
purchase price includes the up-front fee component of a license under United
States Patent Nos. 4,683,195, 4,683,202 and 4,965,188, owned by Roche
Molecular Systems, Inc., and under corresponding claims in patents outside
the United States, owned by F. Hoffmann-La Roche Ltd, covering the
Polymerase Chain Reaction (“PCR”) process, to practice the PCR process for
internal research and development using this instrument. The running
royalty component of that license may be purchased from Applied Biosystems
or obtained by purchasing Authorized Reagents. This instrument is also an
Authorized Thermal Cycler for use with applications licenses available from
Applied Biosystems. Its use with Authorized Reagents also provides a
limited PCR license in accordance with the label rights accompanying such
reagents. Purchase of this product does not itself convey to the purchaser
a complete license or right to perform the PCR process. Further information
on purchasing licenses to practice the PCR process may be obtained by
contacting the Director of Licensing at Applied Biosystems, 850 Lincoln
Centre Drive, Foster City, California 94404, USA.

No rights are conveyed expressly, by implication or estoppel to any patents
on real-time methods, including but not limited to 5’ nuclease assays, or to
any patent claiming a reagent or kit.

Applied Biosystems does not guarantee the performance of this instrument.

          5.2 Sample Block User Manuals. If Thermal Cycler Supplier sells add-on or substitute
sample blocks with separate user manuals, the Notice specified in this Section 5.2 shall be in the
user manual for each base unit. Unless and until ABI reasonably instructs differently, the Notice
shall be:

Authorized Thermal Cycler

This base unit, Serial No.                     , in combination with its immediately
attached sample block modules, comprise an Authorized Thermal Cycler. The
purchase price of this base unit includes the up-front fee component of a
license under United States Patent Nos. 4,683,195, 4,683,202 and 4,965,188,
owned by Roche Molecular Systems, Inc., and under corresponding claims in
patents outside the United States, owned by F. Hoffmann-La Roche Ltd,
covering the Polymerase Chain Reaction (“PCR”) process, to practice the PCR
process for internal

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act.

19

 

research and development using this instrument. The running royalty
component of that license may be purchased from Applied Biosystems or
obtained by purchasing Authorized Reagents. This instrument is also an
Authorized Thermal Cycler for use with applications licenses available from
Applied Biosystems. Its use with Authorized Reagents also provides a
limited PCR license in accordance with the label rights accompanying such
reagents. Purchase of this product does not itself convey to the purchaser
a complete license or right to perform the PCR process. Further information
on purchasing licenses to practice the PCR process may be obtained by
contacting the Director of Licensing at Applied Biosystems, 850 Lincoln
Centre Drive, Foster City, California 94404, USA.

No rights are conveyed expressly, by implication or estoppel to any patents
on real-time methods, including but not limited to 5’ nuclease assays, or to
any patent claiming a reagent or kit.

Applied Biosystems does not guarantee the performance of this instrument.

5.3 Labeling. Thermal Cycler Supplier agrees to affix permanently and prominently to
each complete Thermal Cycler that is an Authorized Thermal Cycler the designation “Authorized
Thermal Cycler”, its Serial Number and a direction to consult the user’s manual for license
information.

5.4 Transfer without Authorization Notice. Thermal Cycler Supplier further agrees to
instruct the ultimate purchaser that transfer of the Thermal Cycler or Temperature Cycling
Instrument without the Serial Number or the Notice shall automatically terminate the authorization
granted by this Agreement and the authorization granted hereunder for or in connection with such
product shall expire.

5.5 Designation as “Licensed.” To avoid confusion among thermal cycler users, Thermal
Cycler Supplier agrees not to designate or refer to Thermal Cyclers or Temperature Cycling
Instruments covered by this Agreement as “licensed” unless it fully and simultaneously explains
that the Thermal Cyclers or Temperature Cycling Instruments or other such products do not convey with their purchase a complete license under the Amplification
Patent Rights.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act.

20

 

          5.6 No Authorization Notice. No Authorization Notice shall be supplied with any
instrument, module or component other than a complete Thermal Cycler or Temperature Cycling
Instrument.

     6. Term and Termination

          6.1 Term. This Agreement, unless sooner terminated, shall continue until the
expiration of the last-to-expire of the patents under which rights are granted in this Agreement.

          6.2 Patent Invalidation. This Agreement shall terminate upon a holding of invalidity
or unenforceability of all patent claims licensed hereunder by a final court decision from which no
appeal is or can be taken.

          6.3 Termination by Thermal Cycler Supplier. Thermal Cycler Supplier may terminate
this Agreement for any reason by giving written notice to ABI and ceasing to label, advertise or
promote its Thermal Cyclers or Temperature Cycling Instruments as Authorized Thermal Cyclers. Such
termination shall be effective ninety (90) days after said notice or cessation, whichever is later.

          6.4 Termination by ABI. Without limiting its other contractual, legal or equitable
rights or remedies, ABI shall have the right to terminate this Agreement immediately upon notice to
Thermal Cycler Supplier in the event that a court finds ABI liable for any damages or causes of
action resulting from Thermal Cycler Supplier’s Manufacture of Thermal Cyclers or Temperature
Cycling Instruments or associated modules or components thereof covered by this Agreement or due to
the sale or distribution of those Thermal Cyclers or Temperature Cycling Instruments by Thermal
Cycler Supplier, an Affiliate or a distributor.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act.

21

 

          6.5 Insolvency. This Agreement shall terminate immediately and automatically without
any requirement of notice or any other action by ABI upon (i) an adjudication of Thermal Cycler
Supplier as bankrupt or insolvent, or Thermal Cycler Supplier’s admission in writing of its
inability to pay its obligations as they mature; (ii) an assignment by Thermal Cycler Supplier for
the benefit of creditors; (iii) the appointment of, or Thermal Cycler Supplier’s applying for or
consenting to the appointment of, a receiver, trustee or similar officer for a substantial part of
its property; (iv) the institution of or any act of Thermal Cycler Supplier instituting any
bankruptcy, insolvency arrangement, or similar proceeding; or (v) the issuance or levy of any
judgment, writ, warrant of attachment or execution or similar process against a substantial part of
the property of Thermal Cycler Supplier. Such termination shall be deemed to have occurred
immediately prior to the events set forth in parts (i) through (v) of this Section triggering such
termination.

          6.6 Change of Control. ABI may terminate this Agreement immediately on notice upon
any change in the ownership or control of Thermal Cycler Supplier or of its assets. For such
purposes, a “change in ownership or control” shall mean that, with the exception of an Initial
Public Offering, thirty percent (30%) or more of the voting stock of Thermal Cycler Supplier becomes subject to the
ownership or control of a person or entity, or any related group of persons or entities acting in
concert, which person(s) or entity(ies) (i) did not own or control such portion of voting stock on
the Effective Date hereof, and (ii) are manufacturers of Thermal Cyclers or consumable products
including reagents that run on Thermal Cyclers. ABI shall have the same right to terminate upon any
transfer of thirty percent (30%) or more of the assets of Thermal Cycler Supplier to such manufacturers set forth in part
(ii) above. For the purposes of this Section, Initial Public Offering shall mean the initial
underwritten public offering of voting equity of Thermal Cycler

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act.

22

 

Supplier after the Effective Date of this Agreement pursuant to which (i) Thermal Cycler
Supplier raises at least US $20 million gross proceeds and (ii) such voting equity is listed or traded on
the New York Stock Exchange or the NASDAQ National Market.

          6.7 Termination for Licensee’s Material Breach. Except as otherwise provided in
Section 3.6 of this Agreement, in the event of a material breach or default under this Agreement by
Thermal Cycler Supplier, this Agreement shall terminate automatically thirty (30) days after ABI
provides written notice of such breach or default, provided that such breach or default has not
been cured by Thermal Cycler Supplier within such thirty (30) day period of time.

          6.8 Effect of Termination or Expiration. Upon expiration or termination of this
Agreement, all licenses granted under this Agreement to Thermal Cycler Supplier shall terminate.

          Thermal Cycler Supplier’s obligations under Article 3 or Article 4 accruing prior to
termination or expiration shall survive termination or expiration. Termination of this Agreement
for any reason shall be without prejudice to any rights that shall have accrued to the benefit of a
Party prior to or on account of such termination or expiration. All remedies provided hereunder or
elsewhere are cumulative.

     7. Confidentiality — Publicity

          7.1 Markings. Unless and until ABI reasonably instructs differently, in
advertisements, catalogs, brochures, sales literature and promotional literature for Authorized
Thermal Cyclers, Thermal Cycler Supplier, Affiliates and distributors shall state the following
prominently in type and location:

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act.

23

 

Practice of the patented polymerase chain reaction (PCR)
process requires a license. The <Supplier’s Model>
Thermal Cycler is an Authorized Thermal Cycler and may be
used with PCR licenses available from Applied Biosystems.
Its use with Authorized Reagents also provides a limited PCR
license in accordance with the label rights accompanying
such reagents.

          7.2 Publicity. With respect to Thermal Cycler Supplier’s distribution of any written
information to Third Parties, including but not limited to advertising, brochures, catalogs,
promotional and sales material, and public relations material, ABI shall have the right to
prescribe changes regarding references to, or descriptions of: ABI, PCR, the patents under which
rights are granted in this Agreement, PCR licenses or authorizations, or this Agreement. Thermal
Cycler Supplier agrees to comply with ABI’s reasonable prescriptions.

          7.3 Confidentiality. Except as provided in Sections 7.1 and 7.2, Thermal Cycler
Supplier shall maintain the confidentiality of the provisions of this Agreement, its terms and
conditions, and shall refrain from disclosing without ABI’s written consent the same to anyone
except employees with a need to know and who are bound by confidentiality obligations consistent
with this Agreement. Notwithstanding the foregoing, Thermal Cycler Supplier shall have the right
to make such disclosure solely to the extent such disclosure is required pursuant to court order or
applicable law or regulation, in which case Thermal Cycler Supplier shall promptly notify ABI in
writing of such requirement thirty (30) days in advance of any disclosure. Notwithstanding the
foregoing, if Thermal Cycler Supplier has less than thirty (30) days notice (or if such disclosure
is required less than thirty (30) days after Thermal Cycler Supplier becomes aware of such
disclosure requirement) of such disclosure requirement, then Thermal Cycler Supplier shall promptly
notify ABI in writing of such disclosure requirement within two (2) days after the date Thermal
Cycler Supplier becomes aware of or receives notice of such

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act.

24

 

disclosure requirement. Thermal Cycler Supplier shall in any event provide ABI a reasonable
opportunity to comment upon, object to or seek a protective order with respect to the disclosure or
to redact the proposed disclosure copy of the Agreement. Should Thermal Cycler Supplier conclude
in good faith that such disclosure is in fact required pursuant to applicable law, Thermal Cycler
Supplier shall notify ABI in writing at least thirty (30) days before such disclosure is made to
permit ABI to comment upon or object to the disclosure, or to redact the disclosure copy of the
Agreement such that the disclosure is limited to such information as is required by law.

     8. Compliance and Quality

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

          8.2 No Endorsement. ABI does not approve or endorse Thermal Cyclers or Temperature
Cycling Instruments, or other modules and components of Thermal Cycler Supplier in any way or for
any purpose, including PCR. Quality and quality control with respect to suitability for PCR,
according to standards and requirements that may exist in the marketplace from time to time, are
the sole responsibility of Thermal Cycler Supplier.

     9. Assignment

          9.1 Assignment by Thermal Cycler Supplier. This Agreement and the licenses granted
hereunder are personal in nature. This Agreement and the rights hereunder are non-delegable and
nonassignable by Thermal Cycler Supplier (including without limitation by

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act.

25

 

any attempted assignment or transfer that would arise from a sale or transfer of Thermal
Cycler Supplier’s assets or business, or acquisition of all of the equity of Thermal Cycler
Supplier). Any such assignment or attempted assignment shall be void ab initio and result in
automatic termination of this Agreement without any requirement or notice or other action by ABI.
Without limiting the foregoing, this Agreement cannot be assumed or assumed and assigned by a
trustee or debtor-in-possession in bankruptcy as set forth in section 365(c)(1) of the of the
United States Bankruptcy Code or any similar provisions of state or federal law.

          9.2 Assignment by ABI. ABI may assign all or any part of its rights and obligations
under this Agreement at any time without the consent of Thermal Cycler Supplier. Thermal Cycler
Supplier agrees to execute such further acknowledgments or other instruments as ABI may reasonably
request in connection with such assignment.

     10. Negation of Warranties and Indemnity

          10.1 No Warranty. ABI MAKES NO EXPRESS OR IMPLIED WARRANTIES INCLUDING, WITHOUT
LIMITATION, ANY EXPRESS OR IMPLIED WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR
NONINFRINGEMENT. Nothing in this Agreement shall be construed as: (a) a warranty or representation
by ABI as to the validity or scope of any patent; (b) a warranty or representation that the
practice under the Amplification Patent Rights, the Amplification System Patent Rights, the Thermal
Cycling Instrument Patent Rights, the Automated Method Patent Rights or the Pressing Heated Cover
Patent Rights is or will be free from infringement of patents of Third Parties; (c) an obligation
to sue Third Parties for infringement; (d) except as expressly set forth herein, conferring the
right to use in advertising, publicity or otherwise, in any form, the name of, or any trademark or
trade name of, ABI or Roche; (e) conferring by implication, estoppel or

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act.

26

 

otherwise any license, immunity or right under any patent owned by or licensed to ABI or Roche
other than those expressly licensed pursuant to Article 2 herein, regardless of whether such patent
is dominant or subordinate to the patents licensed to Thermal Cycler Supplier under Article 2 of
this Agreement; (f) an obligation to furnish any know-how; or (g) creating any agency, partnership,
joint venture or similar relationship between ABI or Roche and Thermal Cycler Supplier.

          10.2 Indemnification. Thermal Cycler Supplier shall take all reasonable precautions
to prevent death, personal injury, illness and property damage from the use of Thermal Cyclers,
Temperature Cycling Instruments, modules and components. Thermal Cycler Supplier shall assume all
risk and full responsibility for Thermal Cycler Supplier making, using or selling such products.
Thermal Cycler Supplier shall defend, indemnify and hold ABI and Roche harmless from and against
all liability, demands, damages, expenses (including attorneys’ fees) and losses arising or
resulting from Thermal Cycler Supplier’s (or its Affiliates’ or distributors’) making, using or
selling Thermal Cyclers, Temperature Cycling Instruments, modules and components, including without
limitation any claims asserted by third parties for infringement, personal injury, property damage
or any other injury or damage.

     11. [***]

          11.1 [***]. [***].

     12. General

          12.1 Integration. This Agreement constitutes the entire agreement between the Parties
as to the subject matter hereof, and supersedes and replaces all prior negotiations,
representations, agreements and understandings with respect to the subject matter hereof. This

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act.

27

 

Agreement may be modified or amended only by a writing executed by authorized officers of each
of the Parties.

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

If to ABI:

Applied Biosystems

850 Lincoln Centre Drive

Foster City, California 94404 U.S.A.

Attn.: Director of Licensing

Fax No.: (650) 638-6071

If to Thermal Cycler Supplier:

BioTrove, Inc.

12 Gill Street, Suite 4000

Woburn, MA 01801

Attn.: Mr. Patrick Carroll

Fax No.: +781 721 3601

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

          12.3 Governing Law and Venue. This Agreement shall be deemed made in the State of
California, and it shall be construed and enforced in accordance with the law of the State of
California. The Parties agree that the exclusive jurisdiction and venue for any dispute or
controversy arising from this Agreement shall be in the state or federal courts in California.

          12.4 Conflicting Provisions. Nothing in this Agreement shall be construed to require
the commission of any act contrary to law, and wherever there is any conflict between

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act.

28

 

any provision of this Agreement or concerning the legal right of the Parties to enter into
this contract and any statute, law or ordinance, the latter shall prevail, but the provision shall
be limited only to the extent necessary.

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

          12.6 Construction. Except where the context otherwise requires, wherever used, the
singular shall include the plural and the word “or” is used in the inclusive sense. The captions
and headings of this Agreement are for convenience of reference only and in no way define,
describe, extend or limit the scope or intent of this Agreement or the intent of any provision
contained in this Agreement. Each Party hereto and its counsel have participated equally in the
formation of this Agreement; the language of this Agreement shall not be presumptively construed
against either Party.

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

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act.

29

 

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

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

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

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act.

30

 

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

	 	 	 	 	 	 	 	 	 	 	 
	APPLIED BIOSYSTEMS	 	 	 	BIOTROVE, INC.
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Illegible
 

	 	 	 	By:
	 	/s/ Robert Ellis
 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	V.P., Intellectual Property
 

	 	 	 	Title:
	 	CEO
 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	1/5/05
 

	 	 	 	Date:
	 	12/22/2004
 

	 	 

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act.

31

 

APPENDIX A

Summary Royalty/Fee Report

THERMAL CYCLER SUPPLIER AGREEMENT

for the Period:                      to                      for Sales in the country of                     

Thermal Cycler (TC) Supplier: BioTrove, Inc. Effective Date:                      Royalty/Fee Rate: $280 + 12% Net Sales Price;
$50/PHC

o Check here if there were no sales for this period.

	 	 	 	 	 	 	 	 	 	 	 
	TC/PHC/blocks	 	# of	 	Gross Invoice Price	 	Deductions Allowed	 	Net Sales Price	 	 
	Model #	 	TCs/PHCs/blocks	 	(actual)	 	(explain)	 	(actual)	 	Royalty/Fee Due
	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 
	 	 
	 	 
	 	 

	 	 	 	 	 	 	 	 	 
	TC/PHC/blocks	 	# of	 	 	 	Calculated Net	 	 
	Model #	 	TCs/PHCs/blocks	 	Price to Distributor	 	Sales Price	 	Royalty/Fee Due
	 
	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 
	 	 
	 	 
	 	 

Total Royalty/Fee Earned:                     

Royalty/Fee Payment Due:                     

I hereby certify the information set forth above is correct and complete with respect to the
amounts due under the applicable license agreement.

By                                         Title                     
                     Date                                         

Name (please print)                                         

Applera Corporation Send report to: Director of Licensing, Applied Biosystems, 850
Lincoln Centre Drive, Foster City, CA 94404 USA

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the Commission pursuant to the Company’s application requesting confidential treatment under Rule 406 of the Securities Act.

32Exhibit 10.1

FINANCING AGREEMENT

This Financing Agreement (this “Agreement”), dated as of May 22, 2008, is entered into by and between AXS-One Inc. (“Client”), and Sand Hill Finance, LLC (“SHF”).

1. Purchase of Accounts.

1.1 Schedule of Accounts. Client may request that SHF purchase Accounts by delivering to SHF a Schedule of Accounts (the “Schedule of Accounts”) in the form of Exhibit A, and, if requested by SHF, an invoice for each of the listed Accounts, signed by an authorized representative of Client. SHF is authorized to act upon the written or oral directions of any person that SHF believes is an authorized representative. SHF reasonably may, in its sole discretion, elect to purchase any Account included in a Schedule of Accounts, but is under no obligation to purchase any such Account.

1.2 Purchased Account; Creation of a Book Reserve. Upon acceptance of any such Account (a “Purchased Account”), SHF shall pay to Client Eighty percent (80%) of the face amount of the Purchased Account (the “Advance”). The aggregate outstanding Advances under this Agreement shall not exceed One Million Dollars ($1,000,000) (the “Credit Limit”). Client sells, transfers and assigns to SHF, all of Client’s right, title and interest in and to each Purchased Account, together with all of the goods represented by each Purchased Account, all of Client’s rights and remedies as an unpaid Client under applicable law, and all of Client’s rights in and to all security for each such Purchased Account and guaranties thereof, and all rights against third parties with respect thereto. Any goods recovered or received by Client shall be set aside, marked with SHF’s name, and held for SHF’s account as owner. The amount of Purchased Accounts outstanding at any time shall constitute the “Account Balance”. Upon payment of the Advance to Client, SHF shall also create a reserve on SHF’s books and records with respect to each Purchased Account in an
amount equal to the face amount of the Purchased Account minus the Advance for such Purchased Account (the “Reserve”). Notwithstanding the foregoing, in no event shall the Reserve with respect to all Purchased Accounts outstanding at any time be less than Twenty percent (20%) of the Account Balance. SHF may, in its discretion, change the percentage of the Advance and the Reserve at any time, but only with respect to any future Purchased Account that SHF acquires following SHF’s disclosure to Client in writing of any different percentage applicable to such future Advance or the Reserve related thereto.

1.3 Collection of Accounts. SHF may directly collect each Purchased Account. At the request of SHF, Client and SHF shall notify each person liable on a Purchased Account (an “Account Debtor”) by letter in a form acceptable to SHF that Purchased Accounts owed by such Account Debtor have been assigned and are payable to SHF. Client shall not take or permit any action to change or revoke any notification without SHF’s prior written consent and shall not request any Account Debtor to pay any Purchased Account to Client. If Client receives any payments of any Purchased Accounts despite this Agreement, Client shall (i) immediately notify SHF of such payment, (ii) hold such payment in trust and safekeeping for SHF, and (iii) immediately turn over to
SHF the identical checks, monies or other forms of payment received, with any necessary endorsement or assignment. SHF shall have the right to endorse Client’s name on all payments received in connection with each Purchased Account and on any other proceeds of Collateral (as defined in Section 6). SHF shall apply payments received first to the Purchased Accounts and, so long as there does not then exist an Event of Default or an event that with notice or lapse of time would constitute an Event of Default, at SHF’s option, SHF shall credit the Reserve or remit to Seller the excess; provided, that if any Event of Default or event that with notice or lapse of time or otherwise would constitute an Event of Default then exists, SHF shall have no duty to remit any such collections, which collections constitute Collateral, and may apply such collections to reduce the Obligations (as defined in Section
6). Any excess beyond that which is required to repay the Obligations shall be remitted to the party entitled to it under applicable law. Client shall indemnify and hold SHF harmless from any expenses, damages and claims arising out of SHF’s collection of any Accounts.

1.4 Full Recourse. The purchase by SHF of Purchased Accounts from Client shall be with full recourse against Client. Client shall be liable for any deficiency in the event the Obligations exceed the amount of Purchased Accounts and the other Collateral.

 

 

-1-

 

2. Fees and Customer Payments.

2.1 Fees. On the date of this Agreement, and on each anniversary of the date of this Agreement, Client shall pay SHF a commitment fee equal to One percent (1.00%) of the Credit Limit. Client shall pay to SHF on the last day of each calendar month (the “Settlement Date”), a finance fee (the “Finance Fees”) in an amount equal to one and fifty eight hundredths percent (1.58%) per month of the average daily Obligations outstanding during the month ending on such Settlement Date (the “Settlement Period”). In the event the Reserve (as described in Section 1.2) is deficient for three consecutive business days the Client shall pay SHF a fee equal to two percent (2.0%) of the amount by which the Reserve is deficient (“Over-Advance Fee”). Such accrued fees shall be netted against the Reserve as described in Section 3.3. Client shall pay SHF a fee of $40.00 for each check or item of payment that is returned to SHF for insufficient funds and $25.00 for each wire, sent or received by SHF at the request of Client. In no event shall any charges that may constitute interest hereunder exceed the highest rate permitted under applicable law. In the event that a court of competent jurisdiction makes a final determination that SHF has received
interest hereunder in excess of the maximum lawful rate, then such excess shall be deemed a payment of principal and the interest payable hereunder deemed amended to the amount payable under the maximum lawful rate.

2.2 Crediting Customer Payments. Within one business day after SHF’s receipt of payment of a Purchased Account, SHF shall credit that payment (the “Customer Payments”) to the amount outstanding with respect to the Purchased Account, provided that if any Customer Payment is subsequently dishonored or SHF does not receive good funds for any reason, the amount of such uncollected Customer Payment shall be included in the Account Balance as if such Customer Payment had not been received, and Finance Fees shall accrue thereon, and the credit to the specific Purchased Account shall be reversed. Notwithstanding the foregoing, upon the occurrence of an Event of Default, SHF
shall apply all Customer Payments to Client’s Obligations under this Agreement in such order and manner as SHF shall, in its sole discretion, determine.

2.3 Accounting. SHF shall deliver to Client after each Settlement Date, a statement of Client’s account which shall include an accounting of the transactions for that Settlement Period, including the amount of all Finance Fees, Adjustments (as defined in Section 3.1), Chargeback Amounts (as defined in Section 3.2), Customer Payments and Purchased Accounts. The accounting shall constitute an account stated and shall be binding on Client and deemed correct in the absence of manifest error unless Client delivers to SHF a written objection within thirty (30) days after such accounting is received by Client.

3. Adjustment, Chargebacks and Remittances.

3.1 Adjustments. If any Account Debtor asserts any offset, right or claim with respect to a Purchased Account, or pays less than the face amount of such Purchased Account (each, an “Adjustment”), SHF may, in its sole discretion, either (A) deduct the amount of the Adjustment in calculating any amount owed to Client, or (B) chargeback to Client the Purchased Account with respect to which the Adjustment is asserted. Client shall advise SHF immediately upon learning of any Adjustment asserted by any Account Debtor.

3.2 Chargebacks. SHF shall have the right to chargeback to Client any Purchased Account:

(a) that remains unpaid ninety (90) calendar days after the invoice date;

(b) with respect to which there has been a breach of any warranty, representation, covenant or agreement set forth in this Agreement;

(c) with respect to which the Account Debtor asserts any Adjustment, or

(d) that is owed by an Account Debtor who has filed, or has had filed against it, any bankruptcy case, insolvency proceeding, assignment for the benefit of creditors, receivership or insolvency

 

 

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proceeding, or who has become insolvent (as defined in the United States Bankruptcy Code) or who is generally not paying its debts as such debts become due.

Upon demand by SHF, Client shall pay to SHF the full face amount of any Purchased Account that has been charged back pursuant to this Section, or to the extent partial payment has been made, the amount by which the face amount of such Purchased Account exceeds such partial payment, together with any reasonable attorneys’ fees and costs incurred by SHF in connection with collecting such Purchased Account (collectively, the “Chargeback Amount”), SHF shall advise Client regarding how the Chargeback Amount shall be paid, which may be by any one or a combination of the following, in SHF’s sole discretion: (1) payment in cash immediately upon demand; (2) deduction from or offset against any Remittance (as defined in Section 3.3) that would otherwise be payable to Client;
(3) payment from any Advances that may otherwise be made to Client; (4) adjustment to the Reserve pursuant to Section 1.2 hereof; or (5) delivery of substitute Accounts and a Schedule of Accounts acceptable to SHF, which Accounts shall constitute Purchased Accounts.

3.3 Remittance. SHF shall remit to Client within one business day after the Settlement Date, the amount, if any, that SHF owes to Client at the end of the Settlement Period based on the following calculations set forth below (the “Remittance”); provided, that if there then exists any Event of Default, and while the Event of Default is continuing, SHF shall not be obligated to remit any payments to Client. If the amount resulting from the following calculation is a positive number, such amount is the amount of the Remittance for such Settlement Period. If the resulting amount is a negative number, such amount is the amount owed by Client to SHF.

The calculations to be used are as follows:

(a) The sum of the following:

(1) The Reserve as of the beginning of the subject Settlement Period, plus

(2) The Reserve created for each Account purchased during the subject Settlement Period;

MINUS

(b) The sum of the following:

(1) Finance Fees accrued during the subject Settlement Period; plus

(2) Adjustments during the subject Settlement Period; plus

(3) Chargeback Amounts, to the extent SHF has agreed to accept payment of any such Chargeback Amount by deduction from the Remittance: plus

(4) All professional fees and expenses as set forth in Section 9 for which oral or written demand has been made by SHF during the subject Settlement Period; plus

(5) The Reserve for the Account Balance as of the first day of the following Settlement Period in the minimum percentage set forth in Section 1.2 hereof.

If the foregoing calculations result in a Remittance payable to Client, SHF shall make such payment subject to SHF’s rights of offset and recoupment, and its right to deduct any Chargeback Amount as set forth in Section 3.2. If the foregoing calculations result in an amount due to SHF from Client, Client shall make such payment by any one or a combination of the methods set forth in Section 3.2 hereof for chargebacks, as determined by SHF in its discretion.

4. Representations and Warranties. Client represents to SHF as follows: (a) Client is not in default under any agreement under which Client owes any money, or any agreement, the violation or termination of which could

 

 

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have a material adverse effect on Client; (b) Client has taken all action necessary to authorize the execution, delivery and performance of this Agreement; (c) except for liens approved in writing by SHF, there are no liens, security interests or other encumbrances on the Collateral; (d) the execution and performance of this Agreement do not conflict with, or constitute a default under, any agreement to which Client is party or by which Client is bound; (e) the information provided to SHF on or prior to the date of this Agreement is true and correct in all material respects; (f) all financial statements and other information provided to SHF fairly present Client’s financial condition as of the applicable dates or periods, and there has not been a material adverse change in the financial condition of Client since the date of the most recent of the financial statements submitted to SHF; (g)
Client is in compliance with all laws and orders applicable to it; (h) Client is not party to any litigation and is not, to its knowledge, the subject of any government investigation, and Client has no knowledge of any pending litigation or investigation or the existence of circumstances that reasonably could be expected to give rise to such litigation or investigation; (i) no representation or other statement made by Client to SHF contains any untrue statement of a material fact or omits to state a material fact necessary to make any statements made to SHF not misleading; and (j) each Account described on each Schedule of Accounts is owned by Client, is correctly stated therein, is not in dispute, is unconditionally owing at the time stated in the invoice evidencing such Account as attached to the Schedule of Accounts, is not past due or subject to any offset or in default, represents a bona fide indebtedness arising from the actual sale of goods or performance of services to an
Account Debtor in the ordinary course of Client’s business which has been received and finally accepted by the Account Debtor.

5. Covenants.

(a) Reports. Upon request by SHF, Client will provide to SHF in form and substance reasonably acceptable to SHF (i) monthly unaudited financial statements within twenty-five (25) days after the last day of each month (other than the month in which Client’s fiscal year ends), prepared in accordance with GAAP, consistently applied; (ii) fiscal year end financial statements within ninety (90) days after the last day of each fiscal year; and (iii) such other information relating to Client’s operations and condition, as SHF may reasonably request from time to time. SHF shall have the right, at its sole cost and expense, to review and copy Client’s books and records and audit and inspect the Collateral, from time to time, upon reasonable written notice to Client. 

(b) Insurance. Client will maintain insurance on the Collateral and Client’s business, in amounts and of a type that are customary to businesses similar to Client’s, and SHF will be named in a lender’s loss payable endorsement in favor of SHF, in form reasonably acceptable to SHF.

(c) Negative Covenants. Without SHF’s prior written consent, Client shall not do any of the following: (i) permit or suffer a change in control of Client or a transfer of more than twenty percent (20%) of its securities; (ii) acquire any assets, except in the ordinary course of business or in a transaction involving the payment of an aggregate amount of One Hundred Thousand dollars ($100,000) or less; (iii) sell, lease, or transfer any property except for sales of inventory and equipment in the ordinary course of business; (iv) transfer, sell or license any intellectual property, except for non-exclusive licenses thereof entered into in the ordinary course of business; (v) pay or declare any dividends on Client’s stock (except for dividends payable solely in stock of Client); (vi) redeem,
purchase or otherwise acquire, any of Client’s stock, (vii) permit any Account Debtor to make payments on a Purchased Account other than to SHF; (viii) make any investments in, or loans or advances to, any person other than in the ordinary course of business as currently conducted; (ix) directly or indirectly enter into any material transaction with any affiliate of Client except for transactions that are in the ordinary course of Client’s business, and on fair and reasonable terms that are no less favorable to Client than would be obtained in an arm’s length transaction with a non-affiliated person; (x) make any payment on any indebtedness that is subordinate to the Obligations, other than in accordance with the subordination agreement, if any, in favor of SHF relating thereto; (xi) incur any indebtedness other than trade credit incurred in the ordinary course of business, (xii) permit any lien or security interest to attach to any Property other than in favor of SHF,
(xiii) fail to make any tax payment on or before the due date; or (xiv) agree to do any of the foregoing.

6. Grant of Security Interest. To secure the prompt payment and performance of all fees, amounts and obligations of Client now or hereafter owing to SHF under this or any other agreement, including reasonable attorneys fees, collectively, (the “Obligations”), Client hereby grants to SHF a security interest in all of Client’s property, now owned or hereafter acquired, including all accounts, inventory, chattel paper, documents, instruments, letters of credit, securities, general intangibles, deposit accounts, patents, trademarks, copyrights, goodwill,

 

 

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 inventory, equipment, investment property, financial assets, and all proceeds of the foregoing (collectively, the “Collateral”).

7. Events of Default; Remedies. Any one or more of the following shall constitute an Event of Default under this Agreement: (a) Client’s failure (i) to pay all or any part of the principal or interest hereunder on the date due and payable or (ii) to comply with any agreement or covenant set forth in this Agreement, (iii) to comply with the terms of any material contract to which Client is a party and any agreement pursuant to which Client has incurred indebtedness, or (iv) to comply with any law to which Client is subject; (b) Any of Client’s assets are attached or become subject to levy or legal proceeding, or if Client becomes insolvent, or becomes the subject of any case or proceeding under the United States Bankruptcy Code or any other law relating to the reorganization or restructuring of debt (an “Insolvency Event”); or (c) any representation made to SHF in this Agreement, the Schedule of Accounts, the Warrant issued of even date herewith, or any information given to SHF by or on behalf of Client shall be incorrect in any material respect; or (d) the occurrence of a material adverse change in Client’s condition. Upon the occurrence of an Event of Default, (a) all fees and other amounts owing hereunder shall, at the option of SHF, be immediately due and payable; (b) the Finance Fee shall be increased at a per annum rate equal to five percentage points above the rate in effect immediately prior to the Event of Default; (c) and SHF may exercise all of the rights of a secured party under the Uniform Commercial Code. Upon the occurrence and during the continuance of an Event of Default, SHF shall have a right to dispose of the Collateral in any commercially reasonable manner, and shall have a royalty-free
license to use any name, trademark, advertising matter or any property of a similar nature to complete production of, advertisement for, and disposition of any Collateral. Upon the occurrence and during the continuance of an Event of Default, SHF shall have a license to enter into, occupy and use Client’s premises and the Collateral without charge to exercise any of SHF’s rights or remedies under this Agreement. All rights are cumulative and may be exercised in SHF’s discretion singularly or together with any other rights.  

8. Power of Attorney 

8.1 Client appoints SHF and its designees as Client’s true and lawful attorney in fact, to exercise in SHF’s discretion, and regardless of whether an Event of Default is then existing, all of the following powers, such powers being coupled, with an interest: (A) to receive, deposit, and endorse Client’s name on all checks, drafts, money orders and other forms of payment relating to the Accounts; (B) to compromise, prosecute, or defend any action, claim, case, or proceeding relating to the Purchased Accounts, including the filing of a claim or the voting of such claims in any bankruptcy case, all in SHF’s name or Client’s name, as SHF may elect; (C) to receive, open, and redirect to Client all mail addressed to Client for the purpose of collecting the Purchased Accounts and to take all the actions
permitted in subsection (A) above with respect to any payment in any such mail; and (D) to do all acts and things necessary or expedient, in furtherance of any such purposes. 

8.2 Furthermore, after the occurrence of an Event of Default and during continuance thereof, Client appoints SHF and its designees as Client’s true and lawful attorney in fact, to exercise in SHF’s discretion, all of the following powers, such powers being coupled, with an interest: (1) to notify all Account Debtors to make payment directly to SHF; (2) to receive, deposit, and endorse Client’s name on all checks, drafts, money orders and other forms of payment relating to the Accounts; (3) to demand, collect, receive, sue, and give releases to any Account Debtor for the monies due or which may become due on or in connection with the Accounts; (4) to compromise, prosecute, or defend any action, claim, case, or proceeding relating to the Accounts, including the filing of a claim or the voting of such claims in any
bankruptcy case, all in SHF’s name or Client’s name, as SHF may elect; (5) to sell, assign, transfer, pledge, compromise, or discharge any Accounts; (6) to receive, open, and redirect to Client all mail addressed to Client for the purpose of collecting the Accounts and to take all the actions permitted in subsection (2) above with respect to any payment in any such mail; (7) to dispose of any Collateral, and (8) to do all acts and things necessary or expedient, in furtherance of any such purposes. Upon the occurrence of an Event of Default, all of the power of attorney rights granted by Client to SHF hereunder shall be applicable with respect to all Collateral. 

9. Administrative Expenses and Attorneys’ Fees. Client shall pay to SHF immediately upon demand, all costs and expenses, including reasonable fees and expenses of attorneys and other professionals, that SHF incurs in connection with any and all of the following (other than general administrative expenses): (A) preparing, administering and enforcing this Agreement, or any other agreement executed in connection herewith;

 

 

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(B) perfecting, protecting or enforcing SHF’s interest in the Purchased Accounts and the other Collateral; (C) collecting the Purchased Accounts and the Obligations; (D) defending or in any way addressing claims made or litigation initiated by or against SHF as a result of SHF’s relationship with Client or any guarantor; and (E) representing SHF in connection with any bankruptcy case or insolvency proceeding involving Client, any Purchased Account, any other Collateral or any Account Debtor. Any attorneys’ fees and expenses may, at SHF’s option, be netted against the reserve as set forth in Section 3.3.

10. Term and Termination. The term of this Agreement shall be for one (1) year from the date hereof, and from year to year thereafter unless terminated in writing by SHF or Client. Notwithstanding the foregoing, any termination of this Agreement shall not affect SHF’s security interest in the Collateral and SHF’s ownership of the Purchased Accounts, and this Agreement shall continue to be effective, and SHF’s rights and remedies hereunder shall survive such termination, until all transactions entered into and Obligations incurred hereunder or in connection herewith have been completed and satisfied in full.

11. Miscellaneous.

11.1 Severability. In the event that any provision of this Agreement is held to be invalid or unenforceable, this Agreement will be construed as not containing such provision and the remainder of the Agreement shall remain in full force and effect.

11.2 Choice of Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of California, without giving effect to principles of conflicts of law. Unless otherwise defined, capitalized terms shall have the meaning assigned in the Uniform Commercial Code.

11.3 Notices. All notices shall be given to SHF and Client at the addresses set forth in this Agreement and shall be deemed to have been delivered and received: (A) if mailed, three (3) calendar days after deposited in the United States mail, first class, postage prepaid; (B) one (1) calendar day after deposit with an overnight mail or messenger service; or (C) on the same date of transmission if sent by hand delivery or fax.

11.4 Jury Waiver; Arbitration; Jurisdiction. SHF AND CLIENT IRREVOCABLY WAIVE ANY RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, INCLUDING CONTRACT CLAIMS, TORT CLAIMS AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. IF THIS JURY WAIVER IS FOR ANY REASON NOT ENFORCEABLE, THEN SHF AND CLIENT AGREE TO RESOLVE AL CLAIMS, CAUSES AND DISPUTES THROUGH FINAL AND BINDING ARBITRATION TO BE HELD IN SANTA CLARA COUNTY, CALIFORNIA IN ACCORDANCE WITH THE THEN-CURRENT COMMERCIAL ARBITRATION RULES OF THE AMERICAN ARBITRATION ASSOCIATION. JUDGMENT UPON ANY AWARD RESULTING FROM ARBITRATION MAY BE ENTERED INTO AND ENFORCED BY ANY STATE OR FEDERAL COURT HAVING JURISDICTION THEREOF. SHF and Client submit to the jurisdiction of the state and Federal courts
located in Santa Clara County, California.

11.5 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original and all of which shall constitute one instrument. Facsimile or other electronic transmission of a signature page shall be valid and binding for all purposes.

11.6 Integration. This Agreement and the documents executed in connection herewith constitute the entire agreement of the parties, and supercedes any prior discussions or agreements, oral or written. This Agreement may not be amended except by written instrument signed by both parties. No waiver shall be effective unless in writing and signed by SHF. Any waiver on one occasion is not a waiver on any subsequent occasion

11.7 Assignment. Client may not assign any interests or rights, or delegate any duties, hereunder. SHF may grant participations in, assign its rights, and grant one or more security interests, in its rights hereunder.

 

 

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11.8 General Authorization. Client hereby authorizes SHF to use Client’s name, logo, and information relating to this financing relationship in its marketing and advertising campaigns which is intended for SHF’s customers, prospects and shareholders. 

IN WITNESS WHEREOF, Client and SHF have executed this Agreement on the day and year written above.

 

	
                        “SHF”
 	
                         
 	
                        “CLIENT”
 
	
                         
 	
                         
 	
                         
 
	
                        SAND HILL FINANCE, LLC
 	
                         
 	
                        AXS-One Inc.
 
	
      By: 
 	
                        
 /s/ Ron Ernst
 	
                         
 	
      By: 
 	
                        
 /s/ Joseph P. Dwyer
 
	
                         
 	
                         
 	
                         
 	
                         
 	
                         
 
	
                        Title: 
 	
                        Chief Financial Officer
 	
                         
 	
                        Title: 
 	
                        Chief Financial Officer
 

 

	
                         
 	
                         
 	
                        Address of Client, Chief Executive Office and Location of Collateral
 
	
                        901 Campisi Way, Ste 250
 Campbell, CA 95008
 Telephone No: (408) 447-8530
 Facsimile No: (408) 447-8535
 	
                         
 	
                        Street: 301 Route 17, North  
 
	 	 	 
	
                         
 	
                         
 	
                        City: Rutherford
 
	 	 	 
	
                        Other Locations of Collateral, if any, in Addition to Above:
 	
                         
 	
                        State: New Jersey
 
	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Zip Code: 07070
 
	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Telephone No.: (201) 372-6055
 
	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Facsimile No.: (631) 980-4253
 
	
                         
 	
                         
 	
                         
 
	
                         
 	
                         
 	
                        Email Address: jdwyer@axsone.com
 
	
                         
 	
                         
 	
                         
 

 

 

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