Document:

exv10w1

Exhibit 10.1

MANAGEMENT PERFORMANCE SHARE AGREEMENT

     MetLife, Inc. confirms that, on [grant date] (the “Grant Date”), it granted you, [name],
[number] Performance Shares (your “Performance Shares”). Your Performance Shares are subject to
the terms and conditions of this Management Performance Share Agreement (this “Agreement”) and the
MetLife, Inc. 2005 Stock and Incentive Compensation Plan (the “Plan”).

     1. Standard Performance Terms.

     (a) The terms of this Section 1 shall be referred to as the “Standard Performance Terms” and
will apply to your Performance Shares except in so far as Sections 2 (Change of Status) or 3
(Change of Control) apply.

     (b) The Performance Period for your Performance Shares will begin on [date], [year] and end
on the December 31 immediately preceding the third anniversary of the beginning of the Performance
Period. After the conclusion of the Performance Period, the Committee shall certify in writing the
number of Performance Shares payable in accordance with this Section 1 (your “Final Performance
Shares”), and your Final Performance Shares will be due and payable in Shares at the time specified
in Section 8.

     (c) If the Committee determines in writing that the Company met one or more of the Section
162(m) Goals, then you will be eligible for a payment of up to 200% of your Performance Shares.
The “Section 162(m) Goals” shall be the following:

     (1) Positive Company income from continuing operations before provision for income
tax, excluding  net investment gains (losses)  (determined in accordance with Section 3(a)
of Article 7.04 of SEC Regulation S-X), which includes total net investment gains (losses) and net derivatives gains (losses), as presented in the financial statements in the
Company’s Annual Report on Form 10-K for the calendar year preceding the beginning of the
Performance Period (“Adjusted Income”), for the Performance Period.

     (2) Positive Adjusted Income for the third calendar year of the Performance Period.

     (3) Positive Company Proportionate Total Shareholder Return for the Performance
Period, as defined for the Company in Section 1(d)(2).

     (4) Positive Company Proportionate Total Shareholder Return for the third calendar
year of the Performance Period, as defined for the Company in Section 1(d)(2) with respect
to the third calendar year of the Performance Period.

     (d) If, under Section 1(c), you are eligible for a payment, the Committee will determine your
Final Performance Shares by multiplying your Performance Shares by the “Performance Factor.” The
Performance Factor means a percentage (from zero to 200%) which is the sum of two other percentages
(each from zero to 100%), described in (1) and (2) below, multiplied by the factor determined by
(3) below, if applicable.

     (1) The first percentage will be based on the Company’s average percentile performance
with respect to Change in Annual Net Operating Income Available to Common Shareholders Per
Share during the Performance Period relative to the other companies in the Index, determined
in the following manner:

 

 

     (a) First, the Net Operating Income Available to Common Shareholders Per Share
will be determined for the Company and for each of the other companies in the Index,
for each calendar year of the Performance Period and the calendar immediately
preceding the first calendar year of the Performance Period. For this purpose, “Net
Operating Income Available to Common Shareholders Per Share” for each calendar year
will have the meaning of that term, or its substantial equivalent, defined in or
derived from the Company’s quarterly financial supplement for the fourth quarter of
the prior year filed with or furnished to the United States Securities and Exchange
Commission.

     (b) Second, the Change in Annual Net Operating Income Available to Common
Shareholders Per Share will be determined for the Company and for each of the other
companies in the Index for each calendar year of the Performance Period. For this
purpose, “Change in Annual Net Operating Income Available to Common Shareholders Per
Share” means Net Operating Income Available to Common Shareholders Per Share for each
calendar year of the Performance Period divided by Net Operating Income Available to
Common Shareholders Per Share in the immediately preceding calendar year.

     (c) Third, the Company’s Change in Annual Net Operating Income Available to
Common Shareholders Per Share for each calendar year of the Performance Period will
be compared to the Change in Annual Net Operating Income Available to Common
Shareholders Per Share for each of the other companies in the Index for the same
calendar year            to determine the percentage of the other companies in the
Index whose performance was less than that of the Company, rounded down to the
nearest whole number percentile appearing on the left-hand column of Table 1 of
Schedule A to this Agreement (Company performance greater than every other company in
the Index being deemed to be performance in the ninety-ninth percentile), producing
the Company’s percentile performance relative to the other companies in the Index.

     (d) Fourth, a percentage for each calendar year of the Performance Period will
be determined using the percentile determined under Section 1(d)(1)(c) and the
corresponding percentage on the right-hand column of Table 1 of Schedule A to this
Agreement.

     (e) Finally, the three percentages referenced in Section (1)(d)(1)(d) will be
averaged.

     (2) The second percentage will be based on the Company’s performance with respect to
Proportionate Total Shareholder Return during the Performance Period as a percentage of that
of the Index, determined according to Table 2 of Schedule A to this Agreement, determined in
the following manner:

     (a) First, the Initial Closing Price of the Company and the Index will each be
determined. For this purpose, “Initial Closing Price” means, in the case of the
Company the average Closing Price, and in the case of the Index the value of the
Index,

2

 

in each case for the twenty (20) trading days prior to the first day of the
Performance Period.

     (b) Second, the Final Closing Price of the Company and the Index will each be
determined. For this purpose, “Final Closing Price” means, in the case of the
Company the average Closing Price, and in the case of the Index the value of the
Index, in each case for the twenty (20) trading days prior to and including the final
day of the Performance Period.

     (c) Third, the Total Shareholder Return of the Company and the Index will each
be determined, and expressed as a percentage. For this purpose, “Total Shareholder
Return” means the change (plus or minus) from the Initial Closing Price to the Final
Closing Price, plus (in the case of the Company) dividends (if any) actually paid on
Shares on a reinvested basis from the first day of the Performance Period to and
including the last day of the Performance Period.

     (d) Fourth, the Proportionate Total Shareholder Return of the Company and the
Index will each be determined. For this purpose, “Proportionate Total Shareholder
Return” means Total Shareholder Return divided by Initial Closing Price.

     (e) Fifth, the Proportionate Total Shareholder Return of the Index will be
subtracted from the Company’s Proportionate Total Shareholder Return, and the result
rounded up or down to the nearest percentage appearing on the left-hand column of
Table 2 of Schedule A to this Agreement (any result precisely halfway between two
percentages being rounded up to the next highest percentage).

     (f) Finally, a percentage will be determined using the result produced under
Section 1(d)(2)(e) and the corresponding percentage on the right-hand column of Table
2 of Schedule A to this Agreement.

     (3) If the Total Shareholder Return of the Company, as determined under Section
(1)(d)(2)(c), is zero percent or less, then the sum of the percentages described under
Sections (1)(d)(1) and (1)(d)(2) will be multiplied by a factor of seventy-five hundredths
(0.75) and rounded up or down to the nearest whole percentage (any result precisely halfway
between two percentages being rounded up to the next highest percentage) to determine the
Performance Factor.

     (e) For purposes of Section 1(d)(1), the companies in the Index refers to each company, other
than the Company and other than Berkshire Hathaway Inc. (and any company that the Committee
determines in its discretion is a successor to Berkshire Hathaway Inc.), that:

     (1) does not adopt International Financial Reporting Standards with respect to a
reporting period earlier than the reporting period with respect to which the Company does
so,

     (2) has publicly reported its earnings in conformity with accounting principles
generally accepted in the United States of America for each of the two calendar years being
compared under Section 1(d)(1)(b); and

3

 

     (3) is included in the Standard & Poor’s Insurance Index derived from Fortune 500
companies for the entirety of the second of the two calendar years being compared under
Section 1(d)(1)(b).

     (f) For purposes of Section 1(d)(2), the Index refers to the Standard & Poor’s Insurance
Index derived from Fortune 500 companies, excluding Berkshire Hathaway Inc. (and any company that
the Committee determines in its discretion is a successor to Berkshire Hathaway Inc.), including
any weighting of the stock of the companies included in that index that is applied by Standard &
Poor’s, from time to time.

     2. Change of Status. For purposes of this Section 2, your transfer between the
Company and an Affiliate, or among Affiliates, will not be a termination of employment. In the
event of a Change of Control, any applicable terms of Section 3 (Change of Control) will supersede
the terms of this Section 2.

     (a) Long-Term Disability. In the event you qualify for long-term disability benefits
under a plan or arrangement offered by the Company or an Affiliate for its Employees, the Standard
Performance Terms will continue to apply to your Performance Shares. Once this provision applies,
no other change of status described in this Section 2 (except the provision regarding termination
for Cause) will affect your Performance Shares, even if you subsequently return to active service
or your employment with the Company or an Affiliate terminates other than for Cause.

     (b) Death. In the event that your employment with the Company or an Affiliate
terminates due to your death, your Performance Shares will be due and payable in Shares (or cash at
a value equal to the Closing Price on the date of your death, if so determined by the Committee).
Any payment will be made at the time specified in Section 8.

     (c) Retirement. If your employment with the Company or an Affiliate terminates
(other than for Cause) on after your early retirement date or normal retirement date (in each case
determined under any ERISA qualified pension plan offered by the Company or an Affiliate in which
you participate) (“Retirement”), the Standard Performance Terms will continue to apply to your
Performance Shares.

     (d) Bridge Eligibility. If your employment with the Company or an Affiliate
terminates (other than for Cause) with bridge eligibility for retirement-related medical benefits
(determined under an ERISA qualified benefit plan offered by the Company or an Affiliate in which
you participate, if any) (“Bridge Eligibility”), and your separation agreement (offered to you
under the severance program offered by the Company or an Affiliate to its Employees) becomes final,
the Standard Performance Terms will continue to apply to your Performance Shares.

     (e) Termination for Cause. In the event that your employment with the Company or an
Affiliate terminates for Cause, your Performance Shares will be forfeited immediately.

     (f) Other Termination of Employment. Unless the Committee determines otherwise, if
no other provision in this Section 2 regarding change of status applies, including, for example,
your voluntary termination of employment, your termination without Retirement or Bridge
Eligibility, or your termination by the Company or an Affiliate without Cause, your Performance
Shares will be forfeited immediately unless you are offered a separation agreement by the Company
or an Affiliate under a severance program. To the extent your separation agreement becomes final,
your Prorated Performance Shares will be due and payable to you. Any payment will be made at the
time specified

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in Section 8. The number of your “Prorated Performance Shares” will be determined by dividing
the number of calendar months in the Performance Period that have ended as of the end of the month
of the termination of your employment by thirty-six (36), multiplying the result by the number of
your Performance Shares, and rounding to the nearest whole number, and, if you were an Insider or
an “executive officer” of the Company under the Securities Exchange Act of 1934, as amended, and
the rules promulgated thereunder, at any time during the Performance Period, further multiplying
the result by the lesser of 100% or the Performance Factor; provided, however, that if the
date of the termination of your employment is prior to the first anniversary of the beginning of
the Performance Period, then the number of your Prorated Performance Shares shall be zero (0).
Payment for each of your Prorated Performance Shares will be made in cash at a value equal to the
Closing Price on the Grant Date, and shall be rounded to the nearest one-hundred dollars ($100.00);
provided, however, that if you were an Insider or an “executive officer” of the Company
under the Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder, at any
time during the Performance Period, payment for each of your Prorated Performance Shares will be
made in cash at a value equal to the lesser of the Closing Price on the Grant Date or the Closing
Price on the date the Committee determines the Performance Factor, and shall be rounded to the
nearest one-hundred dollars ($100.00). If your separation agreement does not become final, your
Performance Shares will be forfeited.

     3. Change of Control.

     (a) Except as provided in Section 3(b), and unless otherwise prohibited under law or by
applicable rules of a national security exchange, if a Change of Control occurs, your Performance
Shares will be due and payable in the form of cash equal to the number of your Performance Shares
multiplied by the Change of Control Price. Any payment will be made at the time specified in
Section 8.

     (b) The terms of Section 3(a) will not apply to your Performance Shares if the Committee
reasonably determines in good faith, prior to the Change of Control, that you have been granted an
Alternative Award for your Performance Shares pursuant to Section 15.2 of the Plan. Any such
Alternative Award shall not accelerate the timing of payment or otherwise violate Code Section
409A.

     4. Nontransferability of Awards. Except as provided in Section 5 or as otherwise
permitted by the Committee, you may not sell, transfer, pledge, assign or otherwise alienate or
hypothecate any of your Performance Shares, and all rights with respect to your Performance Shares
are exercisable during your lifetime only by you.

     5. Beneficiary Designation. You may name any beneficiary or beneficiaries (who may
be named contingently or successively) who may then exercise any right under this Agreement in the
event of your death. Each beneficiary designation for such purpose will revoke all such prior
designations. Beneficiary designations must be properly completed on a form prescribed by the
Committee and must be filed with the Company during your lifetime. If you have not designated a
beneficiary, your rights under this Agreement will pass to and may be exercised by your estate.

     6. Tax Withholding. The Company will withhold from payment made under this Agreement
an amount sufficient to satisfy the minimum statutory Federal, state, and local tax withholding
requirements relating to payment on account of your Performance Shares.

5

 

     7. Adjustments. The Committee will make appropriate adjustments in the terms and
conditions of your Performance Shares in recognition of unusual or nonrecurring events affecting
the Company or its financial statements (such as a Common Stock dividend, Common Stock split,
recapitalization, payment of an extraordinary dividend, merger, consolidation, combination,
spin-off, distribution of assets to stockholders other than ordinary cash dividends, exchange of
shares, or other similar corporate change), or in recognition of changes to applicable laws,
regulations, or accounting principles, to prevent unintended dilution or enlargement of the
potential benefits of your Performance Shares. The Committee’s determinations in this regard will
be conclusive.

     8. Timing of Payment.

     (a) This Agreement is intended to comply with Code Section 409A and shall be interpreted
accordingly. If Shares are to be paid to you, you will receive evidence of ownership of those
Shares.

     (b) If payment is due and payable under Section 2(b), it will be made upon your death.

     (c) If payment is due and payable under Section 2(f), it will be made six (6) months after
the termination of your employment (or six (6) months after your “separation from service” under
Code Section 409A, if that is a different date); provided, however, that if you were an
Insider or an “executive officer” of the Company under the Securities Exchange Act of 1934, as
amended, and the rules promulgated thereunder, at any time during the Performance Period, payment
will be made in the calendar year after the end of the Performance Period but in no event earlier
than six (6) months after the termination of your employment (or six months after your “separation
from service” under Code Section 409A, if that is a different date).

     (d) If payment is due and payable under Section 3(a), and the Change of Control that causes
payment to be due and payable is a “change of control” as defined under Code Section 409A, such sum
shall be paid to you within thirty (30) days of the Change of Control. If payment is due and
payable under Section 3(a), and the Change of Control that causes payment to be due and payable is
not a “change of control” as defined under Code Section 409A, such sum shall be paid to you at the
time determined under Section 8(e).

     (e) If payment is due and payable under the Standard Performance Terms and you have chosen to
defer payment under an applicable deferred compensation plan offered by the Company or an
Affiliate, payment will be made at the time determined under that plan. If payment is due and
payable under the Standard Performance Terms and you have not chosen to defer payment under an
applicable deferred compensation plan offered by the Company or an Affiliate, payment will be made
in the calendar year after the end of the Performance Period.

     9. Closing Price. For purpose of this Agreement, “Closing Price” will mean the
closing price of a Share as reported in the principal consolidated transaction reporting system for
the New York Stock Exchange (or on such other recognized quotation system on which the trading
prices of the Shares are quoted at the relevant time), or in the event that there are no Share
transactions reported on such tape or other system on the applicable date, the closing price on the
immediately preceding date on which Share transactions were reported. Closing Price shall
constitute “Fair Market Value” under the Plan for all purposes related to your Performance Shares.

     10. No Guarantee of Employment. This Agreement is not a contract of employment and
it is not a guarantee of employment for life or any period of time. Nothing in this Agreement
interferes

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with or limits in any way the right of the Company or an Affiliate to terminate your
employment at any time. This Agreement does not give you any right to continue in the employ of
the Company or an Affiliate.

     11. Governing Law; Choice of Forum. This Agreement will be construed in accordance
with and governed by the laws of the State of Delaware, regardless of the law that might be applied
under principles of conflict of laws. Any action to enforce this Agreement or any action otherwise
regarding this Agreement must be brought in a court in the State of New York, to which jurisdiction
the Company and you consent.

     12. Miscellaneous. For purposes of this Agreement, “Committee” includes any direct
or indirect delegate of the Committee as defined in the Plan and (unless otherwise indicated) the
word “Section” refers to a Section in this Agreement. Any other capitalized word used in this
Agreement and not defined in this Agreement, including each form of that word, is defined in the
Plan. Any determination or interpretation by the Committee pursuant to this Agreement will be
final and conclusive. In the event of a conflict between any term of this Agreement and the terms
of the Plan, the terms of the Plan control. This Agreement and the Plan represent the entire
agreement between you and the Company, and you and all Affiliates, regarding your Performance
Shares. No promises, terms, or agreements of any kind regarding your Performance Shares that are
not set forth, or referred to, in this Agreement or in the Plan are part of this Agreement. In the
event any provision of this Agreement is held illegal or invalid, the rest of this Agreement will
remain enforceable. If you are an Employee of an Affiliate, your Performance Shares are being
provided to you by the Company on behalf of that Affiliate, and the value of your Performance
Shares will be considered a compensation obligation of that Affiliate. Your Performance Shares are
not Shares and do not give you the rights of a holder of Shares. You will not be credited with
additional Performance Shares on account of any dividend paid on Shares. The issuance of Shares or
payment of cash pursuant to your Performance Shares is subject to all applicable laws, rules and
regulations, and to any approvals by any governmental agencies or national securities exchanges as
may be required. No Shares will be issued or no cash will be paid if that issuance or payment
would result in a violation of applicable law, including the federal securities laws and any
applicable state or foreign securities laws. Your Performance Shares are subject to the Company’s
performance-based compensation recoupment policy (which currently covers only officers or
officer-equivalent employees of the Company and its Affiliates) in effect from time to time.

     13. Amendments. The Committee has the exclusive right to amend this Agreement as
long as the amendment does not adversely affect any of your previously-granted Awards in any
material way (without your written consent) and is otherwise consistent with the Plan. The Company
will give written notice to you (or, in the event of your death, to your beneficiary or estate) of
any amendment as promptly as practicable after its adoption.

7

 

     14. Agreement to Protect Corporate Property. If you have not previously executed an
Agreement to Protect Corporate Property (“Property Agreement”), the grant of your Performance
Shares is subject to your execution of the Property Agreement provided to you by the Company with
respect to this Agreement, and if you do not return a signed copy of the Property Agreement then
this Agreement and the Performance Shares granted to you will be void. The Company may in its sole
discretion allow an extension of time for you to return your signed Property Agreement.

     IN WITNESS WHEREOF, the Company has caused its duly authorized officer to execute this
Agreement, and you have executed this Agreement.

	 	 	 	 	 	 	 	 	 

	METLIFE, INC.
	 	 	 	EMPLOYEE	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	C. Robert Henrikson
	 	 	 	[name]	 	 
	 

	 	 

Name
	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Chairman of the Board,	 	 	 	 	 	 
	 

	 	President, and Chief Executive Officer	 	 	 	 	 	 
	 

	 	 

Title
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 

Signature
	 	 	 	 

Signature
	 	 
	 

	 	 	 	 	 	Date:                                                             	 	 

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Schedule A

to Management Performance Share Agreement

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Table 1	 	Table 2
	Company Change in Annual	 	 	 	 	 	 	 	 	 	 	 
	Net Operating Income	 	First Percentage (Averaged	 	Index Proportionate Total	 	 
	Available to Common	 	For Each Year of	 	Shareholder Return	 	 
	Shareholders Percentile	 	Performance Period) For	 	subtracted from Company	 	Second Percentage For
	Relative to Other Companies	 	Purposes of Determining	 	Proportionate Total	 	Purposes of Determining
	in the Index	 	Performance Factor*	 	Shareholder Return	 	Performance Factor*
	 
	 	 	0-24	 	 	 	0	 	 	-26.0% or less	 	 	0	 
	 
	 	 	25	 	 	 	25	 	 	 	-25.0	%	 	 	25	 
	 
	 	 	26	 	 	 	26	 	 	 	-24.0	%	 	 	26	 
	 
	 	 	27	 	 	 	27	 	 	 	-23.0	%	 	 	27	 
	 
	 	 	28	 	 	 	28	 	 	 	-22.0	%	 	 	28	 
	 
	 	 	29	 	 	 	29	 	 	 	-21.0	%	 	 	29	 
	 
	 	 	30	 	 	 	30	 	 	 	-20.0	%	 	 	30	 
	 
	 	 	31	 	 	 	31	 	 	 	-19.0	%	 	 	31	 
	 
	 	 	32	 	 	 	32	 	 	 	-18.0	%	 	 	32	 
	 
	 	 	33	 	 	 	33	 	 	 	-17.0	%	 	 	33	 
	 
	 	 	34	 	 	 	34	 	 	 	-16.0	%	 	 	34	 
	 
	 	 	35	 	 	 	35	 	 	 	-15.0	%	 	 	35	 
	 
	 	 	36	 	 	 	36	 	 	 	-14.0	%	 	 	36	 
	 
	 	 	37	 	 	 	37	 	 	 	-13.0	%	 	 	37	 
	 
	 	 	38	 	 	 	38	 	 	 	-12.0	%	 	 	38	 
	 
	 	 	39	 	 	 	39	 	 	 	-11.0	%	 	 	39	 
	 
	 	 	40	 	 	 	40	 	 	 	-10.0	%	 	 	40	 
	 
	 	 	41	 	 	 	41	 	 	 	-9.0	%	 	 	41	 
	 
	 	 	42	 	 	 	42	 	 	 	-8.0	%	 	 	42	 
	 
	 	 	43	 	 	 	43	 	 	 	-7.0	%	 	 	43	 
	 
	 	 	44	 	 	 	44	 	 	 	-6.0	%	 	 	44	 
	 
	 	 	45	 	 	 	45	 	 	 	-5.0	%	 	 	45	 
	 
	 	 	46	 	 	 	46	 	 	 	-4.0	%	 	 	46	 
	 
	 	 	47	 	 	 	47	 	 	 	-3.0	%	 	 	47	 
	 
	 	 	48	 	 	 	48	 	 	 	-2.0	%	 	 	48	 
	 
	 	 	49	 	 	 	49	 	 	 	-1.0	%	 	 	49	 
	 
	 	 	50	 	 	 	50	 	 	 	0.0	%	 	 	50	 
	 
	 	 	51	 	 	 	52	 	 	 	1.2	%	 	 	52	 
	 
	 	 	52	 	 	 	54	 	 	 	2.4	%	 	 	54	 
	 
	 	 	53	 	 	 	56	 	 	 	3.6	%	 	 	56	 
	 
	 	 	54	 	 	 	58	 	 	 	4.8	%	 	 	58	 
	 
	 	 	55	 	 	 	60	 	 	 	6.0	%	 	 	60	 
	 
	 	 	56	 	 	 	62	 	 	 	7.2	%	 	 	62	 
	 
	 	 	57	 	 	 	64	 	 	 	8.4	%	 	 	64	 
	 
	 	 	58	 	 	 	66	 	 	 	9.6	%	 	 	66	 
	 
	 	 	59	 	 	 	68	 	 	 	10.8	%	 	 	68	 
	 
	 	 	60	 	 	 	70	 	 	 	12.0	%	 	 	70	 
	 
	 	 	61	 	 	 	72	 	 	 	13.2	%	 	 	72	 
	 
	 	 	62	 	 	 	74	 	 	 	14.4	%	 	 	74	 
	 
	 	 	63	 	 	 	76	 	 	 	15.6	%	 	 	76	 
	 
	 	 	64	 	 	 	78	 	 	 	16.8	%	 	 	78	 
	 
	 	 	65	 	 	 	80	 	 	 	18.0	%	 	 	80	 
	 
	 	 	66	 	 	 	82	 	 	 	19.2	%	 	 	82	 
	 
	 	 	67	 	 	 	84	 	 	 	20.4	%	 	 	84	 
	 
	 	 	68	 	 	 	86	 	 	 	21.6	%	 	 	86	 
	 
	 	 	69	 	 	 	88	 	 	 	22.8	%	 	 	88	 
	 
	 	 	70	 	 	 	90	 	 	 	24.0	%	 	 	90	 
	 
	 	 	71	 	 	 	92	 	 	 	25.2	%	 	 	92	 
	 
	 	 	72	 	 	 	94	 	 	 	26.4	%	 	 	94	 
	 
	 	 	73	 	 	 	96	 	 	 	27.6	%	 	 	96	 
	 
	 	 	74	 	 	 	98	 	 	 	28.8	%	 	 	98	 
	 
	 	 	75-99	 	 	 	100	 	 	30.0% or greater	 	 	100	 

 

			
	*	 	First percentage is determined for each calendar year of the Performance Period and
averaged, and added to second percentage. The total is multiplied by 0.75 if the Total
Shareholder Return of the Company is zero percent or less, and then multiplied by the number
of Performance Shares granted to determine the number of Final Performance Shares. See
Section 1 of this Agreement.exv10w32

Exhibit 10.32

MASTER CONSULTING AND ENGINEERING SERVICES AGREEMENT

This First Amendment to Master Consulting and Engineering Services Agreement (“Amendment”) is made
effective as of April 23, 2009 by and between KLATU Networks, LLC, an Oregon Limited Liability
Company located in Canby, Oregon (“KLATU”), and Cryoport, Inc., a California Corporation located in
Lake Forest, California (“Cryoport”). KLATU and Cryoport may each be referred to herein as a
“Party” and collectively as the “Parties.”

     A. WHEREAS, the Parties have entered into that certain Master Consulting and Engineering
Services Agreement (the “Agreement”) effective as of October 9, 2007, whereby KLATU agrees to
provide certain design, development, manufacturing, and marketing services for Cryoport, and
Cryoport agrees to compensate KLATU for such services;

     B. WHEREAS, the Agreement provides that KLATU shall be the exclusive owner of any and all
rights in and to the Background Technology and Developed Technology, as those terms are defined in
the Agreement;

     C. WHEREAS, the Agreement does not expressly address the license granted from KLATU to
Cryoport to the technology developed pursuant to the Agreement;

     D. WHEREAS, the Parties now wish to amend the Agreement to reflect the following principles:

	 	i.	 	KLATU Holding Company, LLC, (“KLATU Holding Company”) an Oregon
limited liability company owned and controlled by KLATU shall own all Developed
Technology, as that term is defined herein, and shall file or cause to be filed
patent applications on patentable inventions developed pursuant to the
Agreement;
	 
	 	ii.	 	KLATU Holding Company shall grant an non-exclusive, world-wide,
royalty-free license to Cryoport to use such Developed Technology within
Cryoport’s Field of Use, as that term is defined herein;
	 
	 	iii.	 	At such times as are provided herein, KLATU Holding Company shall
assign to Cryoport certain patent rights in and to the Developed Technology, as
that term is defined herein, expressly and exclusively limited to Cryoport’s
Field of Use and subject to certain reversionary interests held by KLATU and
KLATU Holding Company;
	 
	 	iv.	 	KLATU or KLATU Holding Company, LLC shall at all times retain
exclusive ownership of any and all rights in and to the Background Technology
and any Developed Technology not licensed or assigned to Cryoport as
contemplated by Recitals D(ii) and D(iii).

 

 

NOW, THEREFORE, the parties hereto agree to amend the Agreement as follows:

Article 1, Definitions:

     1.1 “Background Technology” means all schematics, development tools, objects, routines,
subroutines, specifications, methodologies, algorithms, designs, drawings, Source Code, Object
Code, data files, concepts, ideas, best practices, and inventions (whether patentable or not),
know-how, trade secret or other technology or materials and the Intellectual Property Rights
related to or arising from any of the foregoing conceived owned or controlled by KLATU prior to the
Effective Date.

Section 1.5 is hereby amended as follows:

     1.5 “Developed Technology” means all schematics, development tools, objects, routines,
subroutines, methodologies, algorithms, specifications, designs, drawings, software programs (in
both Source Code and Object Code form), including, without limitation, the Developed Software,
Developed Hardware, data files, inventions (whether patentable or not), know-how, trade secret or
other technology or materials and the Intellectual Property Rights related to or arising from any
of the foregoing created, developed, or otherwise reduced to practice, whether developed by KLATU
alone or jointly with Cryoport, pursuant to a Statement of Work under the Agreement, and which has
been fully funded and paid for by Cryoport as provided in the applicable Statement of Work. It is
understood and agreed to by the Parties that the Cryoport Dewar and related physical shipping
materials have been developed solely by Cryoport, and are thus expressly excluded from the
Developed Technology.

Section 1.10 is hereby added as follows:

     1.10 Field of Use” shall mean applications where the primary use of the Developed Technology
is to provide order entry, order management and logistic services or, condition status and health
monitoring of any material contained within a temperature stabilized shipping container, when used
in connection with shipments through third-party shipping companies; provided, however, that the
Field of Use shall exclude any application where the weight of the materials contained within the
shipping container exceeds 30 kilograms.

Article 4, Ownership and Licensing:

Article 4 is hereby replaced in its entirety by the following:

4. Ownership and Licensing.

     4.1 Background Technology. KLATU or its licensors shall retain and are the sole and exclusive
owners of any and all rights in and to the Background Technology.

     4.2 Developed Technology. The Developed Technology, including all inventions, whether
patentable or not, arising from the services performed and to be performed under this Agreement,
shall be owned exclusively by KLATU Holding Company, LLC, except as provided in Section 4.10.

     4.3 KLATU Holding Company. KLATU Holding Company is an Oregon limited liability, controlled
and owned by KLATU. The Parties agree that KLATU Holding Company shall exclusively

2

 

hold and own all Intellectual Property Rights to the Developed Technology, and each Party
hereby agrees to assign their entire interests in the Developed Technology to KLATU Holding
Company, and shall take such steps as are necessary or appropriate to affect or confirm such
assignment. KLATU Holding Company shall not assign or license any Developed Technology within the
Field of Use to third parties without the written consent of Cryoport.

     4.4 KLATU Holding Company Patent Filings. KLATU agrees to cause KLATU Holding Company (a) to
cooperate with Cryoport to promptly execute and file, or to cause to be executed and filed any and
all patent applications covering any of the patentable Developed Technology, and (b) to require the
inventors of such Developed Technology who are employees, independent contractors, or
representatives of KLATU to assign such patent applications and the inventions disclosed therein to
KLATU Holding Company and to execute all such other documents as may be reasonably necessary to
confirm the ownership rights of KLATU Holding Company in the subject matter of the Developed
Technology. Cryoport agrees (a) to require the inventors of any Developed Technology who are
employees, independent contractors, or representatives of Cryoport to assign their rights to such
Developed Technology to Cryoport, and (b) to assign such Developed Technology to KLATU Holding
Company.

     4.5 Patent Filing Costs and Expenses. With respect to any patent applications and patents
covering the Background Technology, KLATU shall be responsible for all costs and expenses related
to preparing, filing and prosecuting such patent applications and paying all maintenance fees
related to any such preparing, filing and prosecuting such patent applications and paying all
maintenance fees related to any such issued patents. With respect to any patent applications and
patents covering the Developed Technology or Assigned Technology (as hereinafter defined), Cryoport
shall be responsible for all costs and expenses related to preparing, filing and prosecuting such
patent applications and paying all maintenance fees related to any such issued patents.

     4.6 Cooperation.

          4.6.1 Product Marking. Cryoport will use commercially reasonable efforts to affix
and/or to require its or their distributors to affix to packaging, or in the case of bulk
distribution to the accompanying documents, for products embodying the Background Technology or the
Developed Technology a notice complying with all applicable patent marking laws in the country or
countries in which the products are made and the country or countries in which the products are
distributed and sold.

          4.6.2 Patent Applications. Each Party agrees to cooperate fully in the preparation,
filing, and prosecution of any patent applications under this Agreement. Such cooperation
includes, but is not limited to: (a) executing all papers and instruments, or requiring its
employees or agents, to execute such papers and instruments, so as to effectuate the ownership of
such patent applications (and inventions covered by such patent applications) and to enable the
relevant Party to apply for and to prosecute patent applications in any country, and (b) promptly
informing the other Party of any matters coming to such Party’s attention that may affect the
preparation, filing, or prosecution of any such patent applications.

          4.6.3 Infringement Alleged by Third Parties. Each Party shall promptly notify the
other in writing of any allegation by a third party that the activity of either of the Parties
under this Agreement infringes or may infringe the Intellectual Property Rights of such third party
(including, if applicable,

3

 

opposition proceedings related to any foreign patents, re-examination of issued patents,
interference proceedings and declaratory judgments, and judgments regarding invalidity of any
patents.) KLATU shall have the right to control the defense of any claims with respect to the
Background Technology or Developed Technology outside the Field of Use by counsel of its own
choice. If KLATU fails to proceed in a timely fashion with regard to the defense of any claims
with respect to the Developed Technology, Cryoport shall have the right to control any such defense
of such claim by counsel of its own choice, and KLATU shall have the right to be represented in any
such action by counsel of its own choice. Cryoport shall have the right to control the defense of
any claims with respect to the Developed Technology within the Field of Use or the Assigned
Technology by counsel of its own choice. If Cryoport fails to proceed in a timely fashion with
regard to the defense of any claims with respect to the Developed Technology, KLATU shall have the
right to control any such defense of such claim by counsel of its own choice, and Cryoport shall
have the right to be represented in any such action by counsel of its own choice. Neither Party
shall have the right to settle any infringement litigation in a manner that diminishes the rights
or interests of the other Party or obligates the other Party to make any payment or take any action
without the consent of such other Party. The costs of defending such claims shall be borne by
Cryoport if the claimed infringement falls within the Field of Use, or is made with respect to the
Assigned Technology. The costs shall be borne equally by the Parties if the claimed infringement
is made with respect to the Developed Technology outside the Field of Use. The costs shall be
borne by KLATU if the claimed infringement is made with respect to the Background Technology.
Neither Party shall be obligated under this section to incur costs or engage in defense efforts
unless such costs or efforts are commercially reasonable in light of the relevant circumstances.

          4.6.4 Third Party Infringement. KLATU and Cryoport shall promptly notify the other in
writing of any alleged or threatened infringement of any Intellectual Property Rights arising from
the Developed Technology of which they become aware. Both parties shall use their best efforts in
cooperating with each other to terminate such infringement without litigation. KLATU shall have
the right to bring and control any action or proceeding with respect to infringement of any
Intellectual Property Rights owned by KLATU or KLATU Holding Company and included in the Developed
Technology outside the Field of Use by counsel of its own choice. With respect to infringement of
any Intellectual Property Rights owned by KLATU or KLATU Holding Company and included in the
Developed Technology outside the Field of Use, if KLATU fails to bring an action or proceeding
within (a) 90 days following the notice of alleged infringement or (b) 10 days before the time
limit, if any, set forth in the appropriate laws and regulations for the filing of such actions,
whichever comes first, Cryoport shall have the right to bring and control any such action by
counsel of its own choice, and KLATU shall have the right to be represented in any such action by
counsel of its own choice. With respect to infringement of any Intellectual Property Rights owned
by Cryoport or included in the Developed Technology within the Field of Use or the Assigned
Technology, if Cryoport fails to bring an action or proceeding within (a) 90 days following the
notice of alleged infringement or (b) 10 days before the time limit, if any, set forth in the
appropriate laws and regulations for the filing of such actions, whichever comes first, KLATU shall
have the right to bring and control any such action by counsel of its own choice, and Cryoport
shall have the right to be represented in any such action by counsel of its own choice. In the
event a party brings an infringement action, the other party shall cooperate fully, including if
required to bring such action, the furnishing of a power of attorney. Neither party shall have the
right to settle any infringement litigation in a manner that diminishes the rights or interests of
the other party without the prior written consent of such other party. The costs of enforcement
proceedings shall be borne by Cryoport if the suspected infringement falls within the Field of Use,
or is made with respect to the Assigned Technology. The costs shall be borne equally by the
Parties if the suspected infringement is made with respect to the Developed Technology outside
the Field of Use. The costs shall be borne by KLATU if the suspected infringement is made with
respect to

4

 

the Background Technology. Except as otherwise agreed to by the parties as part of a cost
sharing arrangement, any recovery realized as a result of such litigation, after reimbursement of
any litigation expenses of KLATU, KLATU Holding Company, and Cryoport, shall belong to the party
who brought the action. Neither Party shall be obligated under this section to incur costs or
engage in enforcement efforts unless such costs or efforts are commercially reasonable in light of
the relevant circumstances.

     4.7 Trade Secrets. If Cryoport and KLATU mutually decide to protect some or all of the
Developed Technology under laws relating to trade secrets, the parties shall cooperate with one
another in achieving and maintaining such trade secret protection.

     4.8 Post-Issuance Assignment. After patent claims have issued on Developed Technology, KLATU
shall cause KLATU Holding Company to assign to Cryoport the issued patent claims arising out of
certain of the Developed Technology if such claims fall entirely within the Field of Use (the
“Assigned Technology”). KLATU shall promptly notify Cryoport in writing of the issuance of any
Notice of Allowance upon patent claims arising out of the Developed Technology. Within two (2)
weeks of such issuance, the Parties shall determine in good faith which patent claims fall entirely
within the Field of Use. Claims falling entirely within the field of use shall be assigned to
Cryoport, and KLATU shall cause KLATU Holding Company to take such actions as are necessary or
appropriate to affect such assignment. In the event a dispute should arise between the Parties
with respect to the determination of which claims fall entirely within the Field of Use, and should
be deemed Assigned Technology, the Parties agree to mediate the dispute before a single mediator,
chosen at the mutual consent of the Parties. The mediator shall be knowledgeable in patent
prosecution issues, and in the technical aspects of the Field of Use. The parties agree to share
equally in the costs of the mediation.

          4.8.1 Transferability of Assigned Technology. Cryoport may not assign or otherwise transfer
the Assigned Technology at any time without the prior written consent of KLATU, provided that
Cryoport may assign or otherwise transfer the Assigned Technology to a parent, subsidiary, or
successor-in-interest to its business (whether by merger, acquisition, consolidation, or sale of
substantially all of the assets of Cryoport) if such assignee complies with, and agrees to be bound
by, the provisions of Section 4.14. Cryoport may grant licenses in the Assigned Technology to
third parties for the following purposes: i) in support of third party business partners who are
prior to such grant regular suppliers or customers of CryoPort, CryoPort may grant such parties
personal, non-transferable, non-exclusive licenses to use the Assigned Technology within the Field
of Use provided that the license prohibit the transfer, assignment, modifying, translating,
renting, reverse engineering, or creation of derivative works of the Assigned Technology; ii)
pursuant to limited End User License Agreements granting retail customers within the Field of Use a
personal, non-transferable, non-exclusive right to use the Assigned Technology in connection with
the service or product embodying the Assigned Technology, and prohibiting the transfer, assignment,
modifying, translating, renting, reverse engineering, creation of derivative works, or copying of
the Assigned Technology; (iii) granting third-party shipping companies and their affiliate
companies a personal, non-transferable, non-exclusive license to use the Assigned Technology within
the Field of Use and prohibiting the transfer, assignment, modifying, translating, renting, reverse
engineering, or creation of derivative works of the Assigned Technology. If Cryoport licenses the
Assigned Technology to third parties for other purposes, or assigns the Assigned Technology to
third parties outside of the parameters set forth in the first sentence of this paragraph, KLATU
shall be entitled to compensation for such licensing or assignment in an amount equal to one-half
(1/2) of the proceeds received by Cryoport as consideration for such licensing or assignment, minus
Cryoport’s development costs paid to develop such Assigned Technology, payable
on the same terms as Cryoport is paid, provided if Cryoport accepts non-cash consideration
KLATU

5

 

shall be entitled to the cash equivalent. Cryoport understands and agrees that these
restrictions on transferability of the Assigned Technology are reasonable and necessary given the
Parties relationship and the harm that would be caused to KLATU, the Background Technology, and the
Developed Technology in the absence of such restrictions.

     4.9 License — Background Technology. Subject to the terms and conditions of this Agreement,
KLATU hereby grants to Cryoport a non-exclusive, worldwide, royalty-free license under the
Background Technology to use, make, have made, offer to sell and sell services or products
embodying the Background Technology in Cryoport’s Field of Use for use solely in conjunction with
the Developed Technology.

     4.10 License — Developed Technology. Subject to the terms and conditions of this Agreement,
KLATU and KLATU Holding Company hereby grant to Cryoport a worldwide, royalty-free license under
the Developed Technology to use, make, have made, offer to sell and sell services or products
embodying the Developed Technology within Cryoport’s Field of Use. Except as provided in Section
4.14, this license shall be exclusive to Cryoport within the Field of Use, but KLATU and KLATU
Holding Company shall be free to license, assign, or otherwise transfer any Intellectual Property
Rights arising from Developed Technology outside of the Field of Use.

     4.11 License — Assigned Technology. Without implying that any Developed Technology outside
the Field of Use is to be assigned to Cryoport, to the extent that any Developed Technology outside
the Field of Use is assigned to Cryoport, Cryoport hereby grants to KLATU an exclusive, worldwide,
royalty-free license under the Assigned Technology to use, make, have made, offer to sell and sell
services or products embodying the Assigned Technology outside the Field of Use.

     4.12 Limitation on Licenses. No license granted to Cryoport under this Agreement shall
include the right to assign the license or grant sublicenses to third parties covering Background
Technology or Developed Technology, provided that Cryoport may assign the license to a parent,
subsidiary, or successor-in-interest to its business (whether by merger, acquisition,
consolidation, or sale of substantially all of the assets of Cryoport) if such assignee complies
with the provisions of Section 4.14.5, and provided further that Cryoport shall have limited rights
to sublicense the Background Technology and/or Developed Technology within the Field of Use, and
only within the Field of Use, as described in this Section 4.12. Cryoport may grant licenses in the
Background Technology and/or Developed Technology, only within the Field of Use, to third parties
for the following purposes: i) in support of third party business partners who are prior to such
grant regular suppliers or customers of CryoPort, CryoPort may grant such parties personal,
non-transferable, non-exclusive licenses to use the Background Technology and/or Developed
Technology within the Field of Use provided that the license prohibit the transfer, assignment,
modifying, translating, renting, reverse engineering, or creation of derivative works of the
Background Technology and Developed Technology; ii) pursuant to limited End User License Agreements
granting retail customers within the Field of Use a personal, non-transferable, non-exclusive right
to use the Background and/or Developed Technology in connection with the Service or product
embodying the Background Technology and/or Developed Technology, and prohibiting the transfer,
assignment, modifying, translating, renting, reverse engineering, creation of derivative works, or
copying of the Background Technology and Developed Technology; (iii) granting third-party shipping
companies and their affiliate companies a personal, non-transferable, non-exclusive license to use
the Background Technology and/or Developed Technology within the Field of Use and prohibiting the
transfer, assignment, modifying, translating, renting, reverse engineering, or creation of
derivative
works of the Background and Developed Technology. If Cryoport licenses the Background
Technology

6

 

and/or Developed Technology to third parties for other purposes within the Field of Use, KLATU
shall be entitled to compensation for such licensing or assignment in an amount equal to one-half
(1/2) of the proceeds received by Cryoport as consideration for such licensing or assignment, minus
Cryoport’s development costs paid to develop such Developed Technology, payable on the same terms
as Cryoport is paid, provided if Cryoport accepts non-cash consideration KLATU shall be entitled to
the cash equivalent. No license granted to Cryoport under this Agreement shall include the right to
modify, translate, reverse engineer, or create derivative works of the Background Technology or
Developed Technology, or otherwise perform any acts not expressly granted to Cryoport in this
Section 4, without the written consent of KLATU.

     4.13 Right of First Negotiation. KLATU shall have the right to develop and enhance any
technology or services or products embodying Background Technology in any field of use or Developed
Technology outside the Field of Use for its own use or for third parties. KLATU shall have the
right but not the obligation to provide written notice to Cryoport in the event KLATU desires to
develop a technology or product with a third party, or is approached by a third party to develop a
technology or product utilizing the Background Technology within Cryoport’s Field of Use. Such
notice shall include sufficient detail for Cryoport to understand the nature of the service or
product and an outline of anticipated funding needs. Cryoport shall have 30 days following
receipt of such notice to advise KLATU whether Cryoport is interested in such service or product.
Cryoport shall have another 30 days thereafter to negotiate a Statement of Work on terms and
conditions acceptable to KLATU, including financial terms under which Cryoport will fund such
development. If the Parties cannot agree to such terms and conditions within such 30 day period
or if Cryoport does not express interest in such a service or product within the initial 30 day
period, (i) KLATU may proceed with such a third party development and Cryoport shall have no rights
in connection with development or with respect to any product developed thereunder (hereinafter a
“Developed Product”), and (ii) it shall be conclusively presumed that the Developed Product does
not infringe upon Cryoport’s Intellectual Property Rights in the Developed Technology or Assigned
Technology, and (iii) KLATU shall have the right to grant a license to a third party under the
Background Technology to make, have made, use or sell such Developed Product. Any such third
party license shall be limited to such Developed Product and shall not otherwise diminish
Cryoport’s rights with respect to the Background Technology or Developed Technology under this
Agreement.

     4.14 Reversion.

          4.14.1 Definitions. For the purposes of this section, a “Pending Application” is a patent
application that is currently pending in the U.S. Patent Office or in the patent office of a
foreign state; a “Related Application” of the Pending Application is patent application that is
entitled to the priority afforded the Pending Application, is based on at least one patent
application in common with the Pending Application, includes disclosures of all of the subject
matter described in the Pending Application and can reasonably claim the subject matter recited in
the claims of the Pending Application in the same patent office in which the Pending Application is
being prosecuted; and a “Final Application” is a Pending Application which has no co-pending
Related Applications. For the purposes of this section, the right to prosecute and maintain a
Patent Application includes the right to file one or more continuation applications,
continuation-in-part applications and divisional applications.

          4.14.2 Status Reports. During KLATU or Cryoport’s (in this case the “Prosecuting Party”)
prosecution of any Pending Application, Related Application, or Final Application, or
maintenance of any Patents covering Developed Technology (in this case, collectively, the “Filings

7

 

Requiring Action”), or Cryoport’s prosecution or maintenance of any Filings Requiring Action
covering Assigned Technology, the Prosecuting Party shall provide written status reports to the
other Party describing: i) the current Filings Requiring Action; ii) the status of the Filings
Requiring Action; (iii) any office actions, responses, fees, or any filings or other actions
necessary or appropriate to preserve the Parties’ rights to the Filings Requiring Action (each a
“Required Action); and (iv) the due date for the taking of those Required Actions. Status Reports
shall be sent by the Prosecuting Party within ten (10) days of any initial filings for a Filing
Requiring Action, and shall thereafter be sent on or before the date thirty (30) days prior to the
due date for any Required Action, provided that no more than one status report shall be required in
any thirty (30) day period. For the purpose of this paragraph the “due date” shall be defined as
that date by which an action may be taken without the payment of any extension fees, requests for
extensions, or similar actions, and without in any way diminishing the Parties’ rights to a Filing
Requiring Action.

     4.14.3 Abandonment by Cryoport. In the event that: (i) Cryoport desires to abandon any Final
Application covering the Assigned Technology or the Developed Technology; (ii) Cryoport later
declines responsibility for any such Final Application or patent; or (iii) Cryoport declines to
share costs for any Final Application or patent covering the Assigned Technology or the Developed
Technology, Cryoport shall provide reasonable prior written notice to KLATU of such intention to
abandon or, decline responsibility or not share costs, and upon KLATU’s request shall assign all
rights to and in such Final Application or patent to KLATU. KLATU shall have the right, at its own
expense, to file, prosecute and maintain such Final Application or patent. In addition, KLATU
shall have the right, at its own expense, to file, prosecute and maintain such Final Application or
patent upon or after the bankruptcy, dissolution or winding up of Cryoport. If Cryoport fails to
notify KLATU of its intention to take action necessary to prevent abandonment of a Final
Application or Patent at least one month before the final date available to respond to a patent
office communication or payment of a fee required by the patent office, KLATU shall notify Cryoport
of its intent to assume control over such patent or Final Application, and Cryoport shall have five
(5) business days to affirm or disaffirm the abandonment and take such actions as are necessary to
preserve the Parties rights in the Final Patent or patent application.

     4.14.4 Cessation of Use. In the event that Cryoport substantially discontinues business
operations and/or ceases to substantially use the Assigned Technology or Developed Technology for a
period of six (6) months or more, upon KLATU’s request Cryoport shall assign all rights in and to
such Assigned Technology or Developed Technology to KLATU or its assigns. Upon such cessation of
use, and up to and until such assignment is made, the licenses granted to Cryoport under Sections
4.9 and 4.10 shall become non-exclusive, and Cryoport hereby grants to KLATU or its assigns an
irrevocable, exclusive, worldwide, royalty-free license under the Assigned Technology or Developed
Technology to use, make, have made, offer to sell and sell services or products embodying the
Assigned Technology or Developed Technology, including the right to assign or grant sublicenses
under this license to third parties.

     4.14.5 Failure to Protect. Cryoport shall take such actions as are reasonably necessary or
prudent to acquire, enforce, and protect the Intellectual Property Rights in the Assigned
Technology and Developed Technology. Without limiting the generality of the foregoing, Cryoport
shall also take such actions as are reasonably necessary to protect and maintain confidential the
source code, scripts, programming code, data, information, algorithms, trade secrets and other
confidential and proprietary information of KLATU related to the Background Technology, Developed
Technology, and services provided or contemplated by this Agreement. If Cryoport fails to do so,
in addition to all other remedies
available to KLATU, upon KLATU’s request Cryoport shall assign all of Cryoport’s rights in and
to the

8

 

Assigned Technology or Developed Technology to KLATU or its assigns. Upon such failure to
protect, and up to and until such assignment is made, the licenses granted to Cryoport under
Sections 4.9 and 4.10 shall become non-exclusive, and Cryoport hereby grants to KLATU or its
assigns an irrevocable, exclusive, worldwide, royalty-free license under the Assigned Technology or
Developed Technology to use, make, have made, offer to sell and sell services or products embodying
the Assigned Technology or Developed Technology, including the right to assign or grant sublicenses
under this license to third parties.

Article 6, Confidentiality

Section 6.1 is hereby amended as follows:

6.1 Confidential Information. The parties acknowledge that in the course of performance of their
obligations under this Agreement, each party (the “Recipient”) may obtain certain confidential and
proprietary information of the other party (the “Disclosing Party”), including without limitation,
information concerning copyrighted works, patents or patent pending investigations, development, or
general information regarding such party’s technology, customers, financial, business, or marketing
matters. All such information, whether given in writing or provided verbally, shall be referred to
hereafter as “Confidential Information.” Without in any way limiting the generality of the
foregoing, the Confidential Information shall specifically include the source code, scripts,
programming code, data, information, algorithms, trade secrets and other confidential and
proprietary information of KLATU related to the Background Technology, Developed Technology, and
services provided or contemplated by this Agreement. All such Confidential Information shall be
protected and held in the strictest confidence and trust by the Recipient and not disclosed to any
third parties; provided however, that Recipient may disclose the Disclosing Party’s Confidential
Information to employees, agents, or subcontractors who have executed non-disclosure agreements
with terms at least as restrictive as those set forth herein and who have a need to know such
Confidential Information without the prior written permission of the Disclosing Party. Further,
Confidential Information shall only be used for the purpose of performing obligations under this
Agreement. The obligations set forth in this Section 6.1 shall remain in effect for a period of
five (5) years after termination of this Agreement.

Article 7, Term and Termination

Section 7.1 is hereby amended as follows (additions are double-underlined, deletions are stricken):

7.1 Term. Unless earlier terminated as set forth below, the term of this Agreement shall
begin on the Effective Date and shall continue until December 31, 2009 2008, and shall thereafter
automatically renew for subsequent one (1) year terms.

Section 7.6 is hereby amended and replaced by the following paragraph:

7.6 Survival. Article 4 (Ownership and Licensing), Section 5.5 (Payments and Taxes), Article 6
(Confidentiality), Section 7.5 (Effect of Termination), Article 8 (Arbitration), Article 9
(Governing Law), Article 10 (Warranty) and Article 11 (Miscellaneous) shall survive any termination
of this Agreement.

Section 7.7 is hereby added as follows:

9

 

7.7 Post Termination Rights. Upon the expiration or termination of this Agreement, all license
rights granted to Cryoport under this Agreement shall terminate and immediately revert to KLATU,
and Cryoport shall discontinue all use of the Background Technology and Developed Technology. Upon
the expiration or termination of this Agreement, KLATU may require that Cryoport transmit to KLATU,
at no cost, all material relating to the Background Technology and Developed Technology.

Article 11, Miscellaneous

Section 11.14 is hereby added as follows:

11.4 Indemnification. Cryoport shall indemnify, defend and hold harmless KLATU and its employees,
officers, directors, members and agents from and against any and all claims, demands, expenses,
costs and damages for liability arising out of or in connection with the use of the Developed
Technology and/or the Assigned Technology by or through Cryoport, including, without limitation,
all attorneys’ fees and other legal expenses associated with defending against such claims and
demands, to the fullest extent permitted by applicable law in effect on the date hereof and to such
greater extent as applicable law may hereafter from time to time permit. KLATU shall indemnify,
defend and hold harmless Cryoport and its employees, officers, directors, members and agents from
and against any and all claims, demands, expenses, costs and damages for liability to third parties
arising out of third parties’ claim(s) that the Developed Technology or Cryoport’s use thereof
constitutes an infringement upon any patent or other intellectual property right, including,
without limitation, all attorneys’ fees and other legal expenses associated with defending against
such claims and demands, to the fullest extent permitted by applicable law in effect on the date
hereof and to such greater extent as applicable law may hereafter from time to time permit.
Notwithstanding the foregoing, KLATU may, in its discretion: i) procure the continued right to use
the infringing Developed Technology; or ii) modify the Developed Technology in a manner that makes
it non-infringing, which may include procurement of the rights to alternative technology; provided,
that, such modification does not materially diminish the functionality or performance of the
infringing Developed Technology. Cryoport agrees to implement such changes or modifications in a
reasonable manner so as to limit the Parties’ potential liabilities for infringement.

10

 

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed and delivered by their
duly authorized officers as of the day and year first set forth above.

	 	 	 	 	 	 	 	 	 

	KLATU NETWORKS, LLC	 	CRYOPORT, INC.	 	 
	an Oregon limited liability company	 	a California corporation	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Richard Kriss
 

	 	By:
	 	/s/ Larry G. Stambaugh
 

	 	 
	 
	 	 	 	 	 	 	 	 
	Name:

	 	Richard Kriss
	 	Name:
	 	Larry G. Stambaugh	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Its:

	 	Managing Director
	 	Its:
	 	Chief Executive Officer	 	 
	 

	 	 
	 	 	 	 	 	 

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]