Document:

exv10w4

 

Exhibit 10.4

LIMITED EXCLUSIVE

PATENT LICENSE AGREEMENT

For

DIELECTRIC WALL ACCELERATOR TECHNOLOGY

For Particle and Radiotherapy

Between

THE REGENTS OF THE UNIVERSITY OF CALIFORNIA

and

TOMOTHERAPY INCORPORATED

LLNL Case No. TL02168-0.0

Lawrence Livermore National Laboratory

University of California

P.O. Box 808, L-795, Livermore, CA 94551

Industrial Partnerships and Commercialization

February 23,
2007

Confidential treatment has been
requested for portions of this exhibit.  The copy filed herewith omits the information subject
to the confidentiality request.  Omissions are designated as [ * ].  A complete version of this
exhibit has been filed separately with the Securities and Exchange Commission.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	1.

	 	BACKGROUND
	 	 	1	 
	2.

	 	DEFINITIONS
	 	 	4	 
	3.

	 	LICENSE GRANT
	 	 	9	 
	4.

	 	SUBLICENSING RIGHTS AND OBLIGATIONS
	 	 	9	 
	5.

	 	FEES, ROYALTIES, AND PAYMENTS
	 	 	10	 
	6.

	 	DUE DILIGENCE
	 	 	13	 
	7.

	 	ROYALTY AND PROGRESS REPORTS
	 	 	15	 
	8.

	 	BOOKS AND RECORDS
	 	 	17	 
	9.

	 	LIFE OF THE AGREEMENT
	 	 	17	 
	10.

	 	TERMINATION
	 	 	18	 
	11

	 	DISPOSITION OF LICENSED PRODUCTS ON HAND UPON TERMINATION
	 	 	19	 
	12.

	 	PATENT PROSECUTION AND MAINTENANCE
	 	 	20	 
	I3.

	 	PATENT INFRINGEMENT
	 	 	22	 
	14.

	 	USE OF NAMES AND TRADEMARKS
	 	 	25	 
	15.

	 	LIMITED WARRANTY
	 	 	25	 
	16.

	 	INDEMNIFICATION
	 	 	26	 
	17.

	 	INSURANCE
	 	 	27	 
	18.

	 	WAIVER
	 	 	28	 
	19.

	 	ASSIGNABILITY
	 	 	28	 
	20.

	 	LATE PAYMENTS
	 	 	29	 
	21.

	 	NOTICES
	 	 	29	 
	22.

	 	GOVERNING LAWS; VENUE; ATTORNEYS FEES
	 	 	30	 
	23.

	 	PATENT MARKING
	 	 	31	 
	24.

	 	GOVERNMENT APPROVAL OR REGISTRATION
	 	 	31	 
	25.

	 	COMPLIANCE WITH LAWS
	 	 	31	 
	26.

	 	FORCE MAJEURE
	 	 	32	 
	27.

	 	UNITED STATES PREFERENCE
	 	 	32	 
	28.

	 	PROPRIETARY INFORMATION
	 	 	33	 
	29.

	 	MISCELLANEOUS
	 	 	33	 
	EXHIBIT A — LICENSED PATENTS	 	 	35	 
	EXHIBIT B — RIGHTS GRANTED AND PERFORMANCE OBLIGATIONS	 	 	38	 
	EXHIBIT C — FEES AND ROYALTIES	 	 	43	 
	EXHIBIT D — MUTUAL NONDISCLOSURE AGREEMENT	 	 	46	 
	EXHIBIT E — SCHEDULE	 	 	47	 

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LIMITED EXCLUSIVE PATENT LICENSE AGREEMENT

For DIELECTRIC WALL ACCELERATOR

For Particle and Radiotherapy

This license agreement (“Agreement”) is effective on the Effective Date by and between The Regents
of the University of California (“THE REGENTS”), under its United States Department of Energy
(“DOE”) Contract No. W-7405-ENG-48 to manage and operate Lawrence Livermore National Laboratory
(“LLNL”), and TomoTherapy Incorporated (“LICENSEE”) a Wisconsin corporation having its principal
place of business at 1240 Deming Way, Madison, Wisconsin 53717. THE REGENTS is a corporation
organized and existing under the laws of the State of California, with its principal office at 1111
Franklin Street, 12th Floor, Oakland, California 94607-5200. THE REGENTS and LICENSEE are referred
to jointly as “Parties.” This Agreement and the resulting license are subject to overriding
obligations to the Federal Government pursuant to the provisions of THE REGENTS’ Contract No.
W-7405-ENG-48 with the DOE for the operation of the LLNL and DOE’s grant of patent rights to THE
REGENTS.

	1.	 	BACKGROUND
	 
	1.1	 	Certain inventions characterized as Dielectric Wall Accelerator (“DWA”) technology
(“Invention”) described in LLNL patent applications and patents listed in Exhibit A (LICENSED
PATENTS), which may be useful for the production of Particle and Radiotherapy systems, were
made at LLNL and are covered by THE REGENTS’ Patent Rights as defined in Article 2
(DEFINITIONS).
	 
	1.2	 	LICENSEE entered into a Mutual Nondisclosure Agreement provided in Exhibit D (MUTUAL
NONDISCLOSURE AGREEMENT), which is incorporated herein, that allowed LICENSEE to
evaluate its interest in taking a license to the Invention.
	 
	1.3	 	THE REGENTS grants to the U.S. Government a nontransferable, paid-up, nonexclusive,
irrevocable license to use the Invention by, or on behalf of, the U.S. Government throughout
the world.

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	1.4	 	LICENSEE and THE REGENTS are parties to a cooperative research and development
agreement referred to hereafter as the “CRADA” Agreement No. TC02109.0 as amended, for
purposes of developing a Particle and Radiotherapy System based on LLNL’s DWA technology.
	 
	1.5	 	LICENSEE is interested in acquiring certain rights to
those patents and patent applications listed in Exhibit A (LICENSED PATENTS) of this Agreement, and any additional
patents, patent applications, and copyrightable works developed under the Statement of Work
of the CRADA and by the LLNL DWA team on related projects that would be useful for the
development, manufacture, and use of the technology. THE REGENTS is willing to grant such
rights so that the DWA technology may be developed and used to the fullest extent for the
benefit of the U.S. economy and the general public.
	 
	1.6	 	The Field of Use of this Agreement is Particle and Radiotherapy. LICENSEE will initially
develop a proton therapy system incorporating Licensed Patents, and LICENSEE submitted to THE
REGENTS an acceptable commercialization plan for proton therapy on June 30, 2006. LICENSEE
understands and agrees that in order to maintain exclusivity for Particle and Radiotherapy
that it must submit additional acceptable commercialization plans to THE REGENTS as required
by Exhibit B of this Agreement.
	 
	1.7	 	THE REGENTS wishes to grant the following rights to LICENSEE so that the products and
other benefits derived from the Invention can be enjoyed by the general public.
	 
	1.8	 	The scope of such rights granted by THE REGENTS is intended to extend to the scope of
the patents and patent applications pertaining to the Invention (but only to the extent that
THE REGENTS has Valid Claims of such Patent Rights) and to that material which is otherwise
necessary to utilize the Patent Rights, as described herein, which may include copyrightable
material.
	 
	1.9	 	THE REGENTS has informed LICENSEE, and LICENSEE understands that the Invention is a
research product from a national laboratory and requires additional development for its
commercialization. Other than as may be agreed to by the Parties pursuant to agreements other
than this Agreement, as between THE REGENTS and

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LICENSEE, LICENSEE agrees it is solely responsible for the additional development of
the Invention for commercialization purposes.

	1.10	 	LICENSEE is a “small entity” as defined in 37 CFR § 1.27.
	 
	1.11	 	LICENSEE is a “small business firm” as defined at Section 2 of Pub. L. 85-536 (15
U.S.C. § 632).
	 
	1.12	 	The Parties intend that royalties due under this Agreement will be calculated and paid on
Sales of the Licensed Products or Licensed Services by LICENSEE.
	 
	1.13	 	LICENSEE recognizes the need to practice due diligence
in the development of Licensed Patents in accordance with the Agreement’s terms and conditions to maintain the
license. In addition, both Parties acknowledge that the U.S. Government has certain march-in
rights in accordance with 48 CFR 27.304-1 (g) and 15 USC 3710a(b)(l)(B) and (C).
	 
	1.14	 	As of the Effective Date, THE REGENTS has no knowledge of any
pending or threatened claim related to the Licensed Patents or the Licensed Method, and it has not
granted to any third party any license, option, or other right that conflicts with, or
could conflict with, if exercised, the license, options, and other rights granted by it
under this Agreement.
	 
	1.15	 	LICENSEE and THE REGENTS will assess and amend Exhibit A (LICENSED
PATENTS) after completion and full testing of the sub-scale prototype of the DWA in order to
determine the Licensed Patents needed for commercialization. The Parties will continue to
assess and amend Exhibit A (LICENSED PATENTS) during the course of the CRADA that is
currently negotiated with LICENSEE. During this period, THE REGENTS agree to add additional
rights to Category 1 Patents, Category 2 Patents, and Category 3 Patents as reasonably
necessary to commercialize the Invention in accordance with the provisions herein.

THEREFORE, the Parties agree as follows:

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	2.	 	DEFINITIONS
	 
	 	 	As used in this Agreement, the following terms, whether used in the singular or plural,
will have the following meanings:
	 
	2.1	 	“Affiliate” of LICENSEE means any entity which, directly or indirectly, Controls
LICENSEE, is Controlled by LICENSEE, or is under common Control with LICENSEE. “Control” means
(i) having the actual, present capacity to elect a majority of the directors of such
affiliate, (ii) having the power to direct at least fifty percent (50%) of the voting rights
entitled to elect directors, or (iii) in any country where the local law will not permit
foreign equity participation of a majority, ownership or control, directly or indirectly, of
the maximum percentage of such outstanding stock or voting rights permitted by local law.
LICENSEE does not include “Affiliate.”
	 
	2.2	 	“Effective Date” means the date of execution by the last signing Party and
payment of the License Issue Fee pursuant to Paragraph C. 1.1 in Exhibit C (FEES AND
ROYALTIES).
	 
	2.3	 	“Field of Use” is the application or use defined in Exhibit B (RIGHTS GRANTED AND
PERFORMANCE OBLIGATIONS).
	 
	2.4	 	“Joint Venture” means any separate legal entity established pursuant to an
agreement between a third party and LICENSEE and/or sublicensee to constitute a vehicle
for a joint effort, in which the separate entity manufactures, uses, purchases, Sells, or
acquires Licensed Products from LICENSEE. LICENSEE does not include “Joint Venture.”
	 
	2.5	 	“Licensed Method” means any process or method the use or practice of which, but
for the license granted in this Agreement, would infringe, or contribute to, or induce
the infringement of, any Patent Rights.
	 
	2.6	 	“Licensed Patents” means:

	 	2.6.1	 	U.S. patents and U.S. patent applications specified in Exhibit A (LICENSED
PATENTS), and U.S. patents resulting from these applications, continuations of
these applications, divisionals, and continuation-in-part applications resulting
from these applications only to the extent, however, that Valid Claims in the

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continuation-in-part applications are entirely supported in the specification
and entitled to the priority date of the parent application;

	 	2.6.2	 	reissues of 2.6.1.
	 
	 	2.6.3	 	foreign patent applications filed under Article 12 (PATENT PROSECUTION
AND MAINTENANCE) and patents resulting from these applications, continuations of these
applications, divisionals, and continuation-in-part applications only to the extent,
however, that Valid Claims in the continuation-in-part are entirely supported in the
specification and entitled to the priority date of the patent application; provided
LICENSEE has not breached any obligation to pay foreign fees set forth in this
Agreement.

	2.7	 	“Licensed Product” means all kits, compositions of matter, materials, articles of
manufacture, and products the manufacture, use, Sale, offer for Sale, or import of which,
but for the license granted in this Agreement, would infringe, or contribute to or induce
the infringement of any Patent Rights, or would require the performance of the Licensed
Method.
	 
	2.8	 	“Licensed Service” means the use of Licensed Products or Licensed Method to provide a
service. Neither Licensed Service nor Licensed Method includes the maintenance or servicing of
a Licensed Product.
	 
	2.9	 	“Net Invoice Price” means the gross invoice selling price by the ultimate seller
(whether LICENSEE or a sublicensee) for the Sale of a Licensed Product or Licensed Service,
less the following items, but only to the extent that they actually pertain to the Sale of
such Licensed Product or Licensed Service:

	 	2.9.1	 	Allowances actually granted to customers for rejections, returns, and
prompt payment and volume discounts (in amounts customary to the trade);
	 
	 	2.9.2	 	Freight, transport packing, insurance charges associated with transportation; and

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	 	2.9.3	 	Taxes (including without limitation, sales and use taxes), tariffs or
import/export duties based on Sales when included in the gross invoice price, but not
value-added taxes or taxes assessed on income derived from Sales.

	2.10	 	“Net Sale” means the Net Invoice Price, except in the instances described in
Subparagraphs (2.10.1), (2.10.2), (2.10.3) and (2.10.4) of this Paragraph.

	 	2.10.1	 	For any Relationship-Influenced Sale of a Licensed Product or Licensed Service, Net
Sales will be based on the Net Invoice Price at which the Relationship-Influenced Sale
Purchaser resells such Licensed Product or Licensed Service;
	 
	 	2.10.2	 	In those instances where Licensed Product or Licensed Service is not Sold, but is
otherwise exploited, the Net Sales for such Licensed Product or Licensed Service will
be the Net Invoice Price of products or services of similar kind and quality, Sold in
similar quantities, currently being offered for Sale by LICENSEE and/or any
sublicensee. Where such products or services are not currently Sold or offered for Sale
by LICENSEE and any sublicensees, or others, then the Net
Sales will be LICENSEE’s
and/or any sublicensee’s cost of manufacture of Licensed Product or the cost of
conducting the service, determined by LICENSEE’s and/or any sublicensee’s customary
accounting procedures, plus LICENSEE’s average gross margin less any amounts
attributable to the items set forth in Paragraphs 2.9.1 through 2.9.3 above;
	 
	 	2.10.3	 	In those instances where LICENSEE or a sublicensee acquires and subsequently Sells
Licensed Product or Licensed Service previously Sold to which an earned royalty accrued
hereunder, Net Sales will mean the Net Invoice Price upon Sale of such Licensed Product
or Licensed Service, as applicable, by LICENSEE or the sublicensee, less the Net
Invoice Price of the immediately preceding Sale to LICENSEE or such sublicensee.
	 
	 	2.10.4	 	In those instances where LICENSEE or a sublicensee leases Licensed Products or
otherwise provides Licensed Products or Licensed Services to a third party for
consideration paid over a period of time, Net Sales will mean the Net Invoice

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Price of each such discrete payment actually made by the third party to
LICENSEE, less any amounts attributable to the items set forth in Paragraphs 2.9.1
through 2.9.3 above.

	2.11	 	“New Developments” means inventions, or claims to inventions, which constitute
advancements, developments or improvements, whether or not patentable and whether or not the
subject of any patent application, which are: (a) not sufficiently supported by the
specification of a previously-filed patent or patent application within the Patent Rights to
be entitled to the priority date of the previously-filed patent or patent application; and
(b) not otherwise commercially valuable to LICENSEE’s commercialization of the Licensed
Patents within the Field of Use.
	 
	2.12	 	“Patent Rights” means the Valid Claims of, to the extent assigned to, or otherwise
obtained by, THE REGENTS, in Licensed Patents. This definition of Patent Rights excludes
any rights in and to New Developments.
	 
	2.13	 	“Related Party” means a corporation, firm or other entity with which, or individual with
whom, LICENSEE and or any sublicensee (or any of their respective stockholders, subsidiaries
or Affiliates) have an agreement, understanding, or arrangement (for example, but not by way
of limitation, an option to purchase stock or other equity interest, or an arrangement
involving a division of revenue, profits, special discounts, rebates, or allowances) which is
entirely unrelated to the Sale or exploitation of the Licensed Products or Licensed Services
without which such other agreement, understanding, or arrangement, the amounts, if any,
charged by LICENSEE or sublicensee to such entity or individual for the Licensed Product or
Licensed Service would be higher than the Net Invoice Price actually received.
	 
	2.14	 	“Relationship-Influenced Sale” means a Sale of a Licensed Product, or any exploitation of
the Licensed Product or Licensed Method, by LICENSEE and/or any sublicensee to (i) an
Affiliate; (ii) a Joint Venture; or (iii) a Related Party.
	 
	2.15	 	“Relationship-Influenced Sale Purchaser” means the purchaser of Licensed Product or
Licensed Service in a Relationship-Influenced Sale.

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	2.16	 	“Sale” means the act of selling, leasing or otherwise transferring, providing, or
furnishing for use for any consideration. Correspondingly, “Sell” means to make or cause to be
made a Sale, and “Sold” means to have made or caused to be made a Sale. It shall not be deemed
a Sale under this Agreement for LICENSEE to transfer any Licensed Products to a customer,
where the customer utilized the Licensed Products predominantly for research purposes and
LICENSEE receives for such Licensed Products an amount equal
to or less than LICENSEE’s actual
cost to manufacture such Licensed Products.
	 
	2.17	 	“Valid Claim” means a claim of a patent or patent application in any country that (i) has
not expired; (ii) has not been disclaimed; (iii) has not been cancelled or superseded, or if
cancelled or superseded, has been reinstated; and (iv) has not been revoked, held invalid,
or otherwise declared unenforceable or not allowable by a tribunal or patent authority of
competent jurisdiction over such claim in such country from which no further appeal has or
may be taken.
	 
	2.18	 	“Particle and Radiotherapy” means the medical use of x-rays, protons, and light and
heavy ion charged particles in therapeutic applications.
	 
	2.19	 	“Isotope generation” means the production of
radioisotopes, e.g., F-18 fluorodeoxygluscose (F-18 FDG) and other radiopharmaceuticals for diagnostic
applications.
	 
	2.20	 	“Category 1 Patents” means patents resulting from patent applications and records of
invention in the Field of Use that were generated by the LLNL DWA team and in existence
prior to the Effective Date of this Agreement.
	 
	2.21	 	“Category 2 Patents” means patents resulting from patent applications and records of
invention in the Field of Use that were generated by the LLNL DWA team during the course of
the CRADA, but funded by parties other than LICENSEE. LICENSEE understands that since Category
2 Patents are generated by funds from parties other than LICENSEE, access to Category 2
Patents entails the possibility of additional license fees due at the time that Category 2
Patents may be added to this Agreement by amendment, such additional license fees being
subject to the limitations described in this Agreement.

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	2.22	 	“Category 3 Patents” means patents resulting from patent applications and records
of invention generated by the LLNL DWA team during the course of the CRADA in the Field
of Use funded by LICENSEE.
	 
	2.23	 	“First Commercial Acceptance” means the first sign-off of an acceptance of a Licensed
Product by a customer of LICENSEE that is not an Affiliate.
	 
	3.	 	LICENSE GRANT
	 
	3.1	 	The license rights granted to LICENSEE by THE REGENTS are set forth in Exhibit B
(RIGHTS GRANTED AND PERFORMANCE OBLIGATIONS).
	 
	3.2	 	The license granted hereunder will be subject to the
overriding obligations to the U.S. Government including those set forth in 35 U.S.C. §200-212 and applicable governmental
implementing regulations and the obligation to report on utilization of the Invention set
forth in 37 CFR §401.14(h).
	 
	3.3	 	Subject to its compliance with the terms of Exhibit D (MUTUAL NONDISCLOSURE AGREEMENT),
nothing in this Agreement will be deemed to limit the right of THE REGENTS to publish any and
all technical data resulting from any research performed by THE REGENTS relating to the
Licensed Patents and to make, use or practice the Invention, Licensed Product, Licensed
Service, Licensed Method, and associated technology, and allow other educational and
non-profit institutions to do so solely for educational and research purposes.
	 
	4.	 	SUBLICENSING RIGHTS AND OBLIGATIONS
	 
	4.1	 	The sublicensing rights granted to LICENSEE by THE
REGENTS are set forth in Exhibit B (RIGHTS GRANTED AND PERFORMANCE OBLIGATIONS), Paragraph B.2 (Sublicensing Rights).
	 
	4.2	 	LICENSEE must include in any sublicense all the rights and obligations due THE
REGENTS and the Government set forth in Paragraphs 1.13 and 3.2 of this Agreement.

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	4.3	 	LICENSEE must require sublicensees to provide it with copies of all progress
reports and royalty reports in accordance with the provisions of this Agreement, and LICENSEE will
collect and deliver to THE REGENTS all such reports due from sublicensees.
	 
	4.4	 	LICENSEE must include in all sublicenses the notice that upon termination of this
Agreement for any reason, THE REGENTS, at its sole discretion, will determine whether any
or all sublicenses will be canceled or assigned to THE REGENTS.
	 
	4.5	 	LICENSEE will notify THE REGENTS of each sublicense granted hereunder and
provide THE REGENTS with a complete copy of each executed sublicense within thirty (30)
days of issuance of the sublicense.
	 
	4.6	 	Consideration owed to THE REGENTS will be paid to THE REGENTS on or before the due date
of the royalty report applicable to the quarter in which consideration was finally due and
owing to LICENSEE under the sublicense. LICENSEE will collect from the sublicensees and will
pay to THE REGENTS all fees, royalties, and the cash equivalent of any consideration due THE
REGENTS.
	 
	5.	 	FEES, ROYALTIES, AND PAYMENTS
	 
	5.1	 	Fees and royalties due on Net Sales of Licensed Products or Licensed Services will be
as specified in this Article 5, Exhibit C (FEES AND ROYALTIES), and Article 7 (ROYALTY AND
PROGRESS REPORTS) of this Agreement.
	 
	5.2	 	As partial consideration for the rights granted to LICENSEE, LICENSEE will pay to THE
REGENTS a license issue fee as set forth in Exhibit C.
	 
	5.3	 	As partial consideration for the rights granted to LICENSEE, LICENSEE will pay to THE
REGENTS milestone payments as set forth in Exhibit C.
	 
	5.4	 	As partial consideration for all the rights granted to LICENSEE, LICENSEE will pay THE
REGENTS minimum annual royalties as set forth in Exhibit C.
	 
	5.5	 	As partial consideration for all the rights granted to LICENSEE, LICENSEE will pay to
THE REGENTS earned royalties at the rate set forth in Exhibit C.

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	5.6	 	Earned royalties shall accrue when LICENSEE receives payment for Licensed Products or
Licensed Services, or if no such payment is to be received, when such Licensed Products or
Licensed Services are delivered in a manner constituting a Net Sale as defined in Article 2
(DEFINITIONS), Paragraph 2.10, and no further deliverables are due to the customer by LICENSEE
or sublicensee.
	 
	5.7	 	Payment for earned royalties will include all royalties accrued up to the last day of the
most recently completed calendar quarter, and such payment shall be made on the dates
specified below:
	 
	 	 	February 28 for the calendar quarter ending December 31;
	 
	 	 	May 31 for the calendar quarter ending March 31; 
	 
	 	 	August 31 for the calendar quarter ending June 30; and 
	 
	 	 	November 30 for the calendar quarter ending September 30.
	 
	5.8	 	All consideration due THE REGENTS shall be payable in United States dollars. When Licensed
Products or Licensed Services are sold for monies other than United States dollars, earned
royalties will first be determined in the foreign currency of the country in which such
Licensed Products or Licensed Services were Sold and then converted into equivalent United
States dollars. The exchange rate will be the one actually used by LICENSEE to record such
sale on its financial statements.
	 
	5.9	 	Earned royalties on Sales of Licensed Products or Licensed Services occurring in any country
outside the United States shall not be reduced by any taxes, fees, or other charges imposed by
the government of such country except those taxes, fees, and charges allowed under the
provisions of Paragraph 2.9 (Net Invoice Price). LICENSEE also will be responsible for all
bank transfer charges.
	 
	5.10	 	Notwithstanding the provisions of Article 26 (FORCE MAJEURE), if at any time legal
restrictions prevent prompt remittance of any earned royalties or other consideration owed to
THE REGENTS by LICENSEE with respect to any country where a sublicense is issued or a Licensed
Product or Licensed Service is Sold, then LICENSEE will convert the amount owed to THE REGENTS
into United States dollars and will pay THE

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	 	 	REGENTS directly from another source of funds in order to remit the entire amount owed to
THE REGENTS. Notwithstanding the previous sentence, if LICENSEE is prohibited itself by
such legal restrictions from collecting the Net Invoice Price for the sale of any Licensed
Product or Licensed Service or any royalty or fee from a sublicense, LICENSEE shall not be
obligated to convert such amount owed, but rather will send written notice to THE REGENTS
of such legal restrictions and of the amount owed. Upon removal of such legal restrictions,
LICENSEE will convert said amount owed to THE REGENTS into United States dollars and will
remit the entire amount owed to THE REGENTS.
	 
	5.11	 	No earned royalties will be collected or paid hereunder to THE REGENTS on Licensed Products
or Licensed Services Sold to the account of the U.S. Government. LICENSEE and its sublicensee
will reduce the amount charged for Licensed Products or Licensed Services Sold to the U.S.
Government by an amount equal to the royalty for such Licensed Products or Licensed Services
otherwise due THE REGENTS. LICENSEE will provide THE REGENTS with U.S. Government contract
numbers and a written statement by LICENSEE’s contracting officer that Sale of Licensed
Products to the U.S. Government were reduced by the amount of royalty due THE REGENTS.
	 
	5.12	 	If THE REGENTS must pursue legal means to obtain payments owed by LICENSEE, LICENSEE will pay
THE REGENTS for all reasonable legal costs and any other related costs expended by THE REGENTS
to collect payments owed by LICENSEE.
	 
	5.13	 	In the event that any patent or any claim thereof included within the Patent Rights is held
invalid in a final decision by a court of competent jurisdiction and last resort and from
which no appeal has or can be taken, all obligation to pay royalties based on such patent or
claim or any claim patentably indistinct there from will cease as of the date of such final
decision. LICENSEE will not, however, be relieved from paying any royalties that accrued
before such final decision and LICENSEE will be obligated to pay the full amount of royalties
due hereunder to the extent that THE REGENTS licenses one or more Valid Claims within the
Patent Rights to LICENSEE with respect to Licensed Products or Licensed Services.

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	6.	 	DUE DILIGENCE
	 
	6.1	 	LICENSEE, upon execution of this Agreement, will use all commercially reasonable efforts to
diligently proceed with the development, manufacture, and Sale of Licensed Products and
Licensed Services and use of Licensed Methods, and will use all commercially reasonable
efforts to earnestly and diligently market the same after execution of this Agreement and in
quantities sufficient to meet the market demands therefore.
	 
	6.2	 	LICENSEE will meet the specific performance obligations and milestones specified in Exhibit B
(RIGHTS GRANTED AND PERFORMANCE OBLIGATIONS), in accordance with the terms and conditions
therein (including, without limitation, the cure periods and potential modifications to such
time periods therein). If LICENSEE is unable to meet such milestones in accordance with
Exhibit B, the Parties will use all reasonable efforts to negotiate a new schedule and the
conditions for continuation of a limited exclusive license.

	 	6.2.1	 	If the missed milestone occurs within [ * ] of the Effective Date,
the Parties will agree on a new schedule.
	 
	 	6.2.2	 	If the missed milestone occurs between the[ * ] and[ * ] year after the
Effective Date, and the Parties are unable to reach agreement on a new schedule, THE
REGENTS will have the right to convert the limited exclusive license for Licensed
Patents to a nonexclusive license.
	 
	 	6.2.3	 	If the missed milestone occurs [ * ]  years after the Effective Date, THE
REGENTS will have the right and option to: (a) convert the limited exclusive license
for Licensed Patents to a nonexclusive license; or (b) terminate this Agreement per
Article 10 (TERMINATION), Paragraph 10.1 (Termination by THE REGENTS), subject to the
provisions described in Article 11 (DISPOSITION OF LICENSED PRODUCTS ON HAND UPON
TERMINATION).

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	6.3	 	LICENSEE will comply with all applicable governmental laws and obtain all necessary
governmental approvals in each country where Licensed Products or Licensed Services are
manufactured, used, Sold, imported, or offered for Sale.
	 
	6.4	 	THE REGENTS will notify LICENSEE if THE REGENTS is approached by a third party seeking a
license to make, use, or sell the Invention or the Licensed Products
in LICENSEE’s Field of
Use because commercial demand is not then being met. LICENSEE will negotiate in good faith
with that third party to grant a sublicense for any Licensed Patents in the market for which
LICENSEE and existing sublicensees are not meeting commercial demand. The determination to
grant a sublicense may be based on LICENSEE’s business interests, and may be granted or denied
in LICENSEE’s reasonable business judgment, provided, however, that LICENSEE provides THE
REGENTS with a justification (which shall be treated as Proprietary Information) for denying
any such sublicense.
	 
	6.5	 	During the term of this Agreement, LICENSEE will conduct normal, continuous business
operations. If LICENSEE seeks protection under any United States bankruptcy proceedings during
the term of this Agreement, LICENSEE will notify THE REGENTS in writing no later than
seventy-two (72) hours after the bankruptcy filing. Upon filing bankruptcy, the license
terminates at THE REGENTS’s option as stated in Article 9 (LIFE OF THE AGREEMENT), Paragraph
9.2.
	 
	6.6	 	To exercise either the right to terminate this Agreement or to reduce the exclusive licenses
granted to LICENSEE to nonexclusive licenses for lack of diligence required in this Article 6,
THE REGENTS will give LICENSEE written notice, setting forth specific details as to the nature
of the alleged deficiency. LICENSEE thereafter has sixty (60) days to cure the deficiency. If
THE REGENTS has not received written tangible evidence satisfactory to THE REGENTS that the
deficiency has been cured by the end of the sixty-(60) day period, then THE REGENTS may, at
its option, terminate this Agreement immediately without the obligation to provide sixty (60)
days’ notice as set forth in Paragraph 10.1 or reduce the exclusive licenses granted to
LICENSEE to nonexclusive licenses by giving written notice to LICENSEE.

14

 

	7.	 	ROYALTY AND PROGRESS REPORTS
	 
	7.1	 	LICENSEE will submit to THE REGENTS an annual progress report as described in Paragraph 7.2
below covering activities by LICENSEE and its sublicensees related to the development and
testing of all Licensed Products and Licensed Services. Such progress report will be signed by
LICENSEE’s President or his/her designee attesting to the accuracy of the information in the
report. If LICENSEE fails to submit a timely progress report to THE REGENTS, THE REGENTS will
be entitled to terminate this Agreement in accordance with the material breach provision set
forth in Paragraph 10.1. If either party terminates this Agreement before any Licensed
Products or Licensed Services are Sold or before this Agreement’s expiration, a final progress
report covering the period prior to termination must be submitted within thirty (30) days of
termination.
	 
	7.2	 	The progress reports submitted under Paragraph 7.1 above will include, but not be limited to,
a reasonably detailed summary of the following topics:

	 	•	 	Summary of work completed toward commercialization of Licensed Patents;
	 
	 	•	 	Schedule of anticipated events or milestones, including status of those
events or milestones. Should LICENSEE wish to change the schedule of events or
milestones specified in Exhibit B (RIGHTS GRANTED AND PERFORMANCE OBLIGATIONS),
LICENSEE must request advance written approval from THE REGENTS;
	 
	 	•	 	A financial statement showing the investments made in the commercialization
effort to date;
	 
	 	•	 	Anticipated and actual market introduction dates of each Licensed
Product or Licensed Service;
	 
	 	•	 	Summary of marketing and sales activities, including copies of marketing and
sales literature; and
	 
	 	•	 	activities of the sublicensees, if any.

	7.3	 	LICENSEE also will report to THE REGENTS in its immediately subsequent progress
report the date of first Sale or other exploitation of a Licensed Product or Licensed
Service in each country.

15

 

	7.4	 	Beginning with the quarter following First Commercial Acceptance, LICENSEE will
provide quarterly royalty reports and payments to THE REGENTS on or before each
February 28, May 31, August 31, and November 30 of each year. If there were no Sale of
Licensed Products or Licensed Services, the report will state that. Royalty reports will be
signed by LICENSEE’s President or Chief Financial Officer, or their designee, attesting
to the accuracy of the report. Each such royalty report will cover the most recently
completed calendar quarter (October through December covered in the February
28th report, January through March in the May 31st report, April through June in the
August 31st report, and July through September in the November 30th report)
and will show:

	 	7.4.1	 	the gross invoice prices and Net Sales of Licensed Products or Licensed
Services Sold or otherwise exploited by LICENSEE and its sublicensees during the
most recently completed calendar quarter;
	 
	 	7.4.2	 	the number of Licensed Products or Licensed Services Sold or otherwise
exploited by LICENSEE and its sublicensees during the most recently completed calendar
quarter;
	 
	 	7.4.3	 	the place of manufacture of Licensed Products or practice of Licensed Services;
	 
	 	7.4.4	 	the royalties, in U.S. dollars, payable hereunder with respect to Net Sales;
	 
	 	7.4.5	 	the method used to calculate the royalty, specifying all deductions
taken and the dollar amount of each such deduction; and
	 
	 	7.4.6	 	the exchange rates used, if any.

	7.5	 	LICENSEE will provide THE REGENTS with an annual statement of royalty accounts
within sixty (60) days after the financial closing of
LICENSEE’s fiscal year. THE
REGENTS will protect such statements, and any of the other reports provided to THE
REGENTS pursuant to Article 7, as Proprietary Information and not disseminate them
unless required by law. If a disclosure is required by law, THE REGENTS will give
LICENSEE the opportunity to seek a protective order preventing or limiting such
disclosure.

16

 

	8.	 	BOOKS AND RECORDS
	 
	8.1	 	LICENSEE will keep books and records accurately showing all payments due THE REGENTS and all
Licensed Products and Licensed Services manufactured (including place of manufacture), used,
offered for Sale, imported, and/or Sold under the terms of this Agreement. Such books and
records will be preserved for at least five (5) years after the date of the payment to which
they pertain and will be open to inspection by representatives or agents of THE REGENTS at
reasonable times and upon reasonable prior notice to determine their accuracy and assess
LICENSEE’s compliance with the terms of this Agreement.
	 
	8.2	 	The fees and expenses of representatives of THE REGENTS performing such an examination will
be borne by THE REGENTS. If, however, an underpayment error in royalties of more than five
percent (5%) of the total royalties due for any year is discovered, LICENSEE will bear the
reasonable costs associated with the examination and will remit such underpayment to THE
REGENTS within thirty (30) days of the examination result.
	 
	8.3	 	LICENSEE will provide THE REGENTS with an annual audited financial statement of LICENSEE,
including at a minimum a balance sheet and operating statement or LICENSEE’s annual report,
and THE REGENTS will treat such reports as Proprietary Information to the extent the same is
not part of a public filing. Such statement will be due to THE REGENTS within one hundred
twenty (120) days following the close of LICENSEE’s fiscal year to which such statement
relates.
	 
	9.	 	LIFE OF THE AGREEMENT
	 
	9.1	 	Unless otherwise terminated by operation of law, Paragraph 9.2, or by acts of the Parties in
accordance with the terms of this Agreement, this Agreement will remain in effect from the
Effective Date until the expiration or abandonment of last of the Patent Rights licensed
hereunder, at which point this Agreement will expire.
	 
	9.2	 	This Agreement will terminate at THE REGENTS’s option upon the filing of a petition for
relief under the United States Bankruptcy Code by LICENSEE. If the bankruptcy

17

 

	 	 	petition is filed against LICENSEE by a third party, LICENSEE has sixty (60) days from the
date of the petition to have such third-party bankruptcy filing dismissed. If at the end of
the sixty (60) day period, LICENSEE fails to have the third party filing dismissed, this
Agreement will automatically terminate.
	 
	9.3	 	Any termination of this Agreement will not affect the rights and obligations set forth in the
following Articles: Article 2 (DEFINITIONS), Article 5 (FEES, ROYALTIES, AND PAYMENTS),
Article 8 (BOOKS AND RECORDS), Article 9 (LIFE OF THE AGREEMENT), Article 11 (DISPOSITION OF
LICENSED PRODUCTS ON HAND UPON TERMINATION), Article 14 (USE OF NAMES AND TRADEMARKS), Article
15 (LIMITED WARRANTY), Article 16 (INDEMNIFICATION), Article 17 (INSURANCE), Article 21
(NOTICES), Article 22 (GOVERNING LAWS; VENUE; ATTORNEYS’ FEES), and Article 28 (PROPRIETARY
INFORMATION), subject to any time limitations set forth in those Articles. Notwithstanding
anything herein to the contrary, LICENSEE shall have no obligation to pay any amount under
this Agreement unless such amount was due and owing prior to the termination or expiration of
this Agreement.
	 
	9.4	 	The termination or expiration of this Agreement will not relieve LICENSEE of its obligation
to pay any fees, royalties, and reimbursements for foreign filing costs, or other payments
owed to THE REGENTS at the time of such termination or expiration and will not impair any
accrued right of THE REGENTS.
	 
	10.	 	TERMINATION
	 
	10.1	 	Termination by THE REGENTS: If LICENSEE fails to perform any material term or covenant of
this Agreement, except for failure to meet a performance obligation which is specifically
addressed in Paragraph 6.2, THE REGENTS may give written notice to LICENSEE that if LICENSEE
has not cured such failure within sixty (60) days after the effective date of receipt of the
notice, this Agreement will terminate at the end of such sixty- (60) day period or at the end
of such longer period as may be set forth in THE REGENTS’ notice.

18

 

	10.2	 	Termination by LICENSEE: LICENSEE will have the right at any time to terminate this
Agreement by providing a Notice of Termination to THE REGENTS and paying any outstanding fees
owed THE REGENTS. Termination of this Agreement will be effective sixty (60) days after the
date such notice takes effect.
	 
	10.3	 	This Agreement will terminate, effective ten (10) days after the effective date of notice
by THE REGENTS, if LICENSEE is dissolved or liquidated.
	 
	11.	 	DISPOSITION OF LICENSED PRODUCTS ON HAND UPON TERMINATION
	 
	11.1	 	Upon termination of this Agreement pursuant to Article 10 (TERMINATION), LICENSEE may Sell
all previously made or partially made Licensed Products (and such partially made Licensed
Products may be completed prior to Sale), but will not make or Sell additional Licensed
Products, provided, however, that the Sale of such Licensed Products will be subject to the
terms of this Agreement including, but not limited to, the payment of earned royalties at the
rates and at the times provided herein and the rendering of reports in connection therewith
LICENSEE will also be permitted to provide Licensed Services for so long as is reasonably
necessary to complete those contractual obligations of LICENSEE accruing prior to termination
or expiration of this Agreement, provided that LICENSEE’s providing of such Licensed Services
will be subject to the terms of this Agreement, including, but not limited to, the payment of
earned royalties at the rates and at the times provided herein and the rendering of reports in
connection herewith.
	 
	11.2	 	Within thirty (30) days after termination of this Agreement by either Party pursuant to
Article 10 (TERMINATION), LICENSEE will provide THE REGENTS with a written inventory of all
Licensed Products in process of manufacture or in stock on the date of termination. LICENSEE
may complete Licensed Products in the process of manufacture at the time of termination, and
may dispose of Licensed Products provided that LICENSEE pays royalties to THE REGENTS on such
dispositions.
	 
	11.3	 	Upon termination of this Agreement pursuant to Article 10 (TERMINATION), LICENSEE may
not practice Licensed Methods after the date of termination of this

19

 

	 	 	Agreement except as necessary to complete the manufacture of Licensed Products as
permitted under Paragraph 11.2 and to provide Licensed Services as described in
Paragraph 11.1.
	 
	12.	 	PATENT PROSECUTION AND MAINTENANCE
	 
	12.1	 	THE REGENTS will prosecute U.S. patent applications and
maintain U.S. patents licensed under this Agreement. In accordance with Paragraph 1.15, upon completion of the
sub-scale prototype of the DWA (estimated to be [ * ]), LICENSEE and THE REGENTS
will review and amend Exhibit A (LICENSED PATENTS) in this License so that the amended list
of Licensed Patents will be those that both Parties believe are necessary for
commercialization of Licensed Products. THE REGENTS recognizes that the list of Licensed
Patents may be amended periodically during the course of the CRADA and subsequent related
research conducted at LLNL. The cost to file and prosecute U.S. Licensed Patents will be as
follows:

	 	12.1.1	 	Category 1 Patents: Costs will be shared by THE REGENTS and LICENSEE. LICENSEE will
reimburse THE REGENTS $[ * ] for each Category 1 Patent that both Parties believe is
necessary for the commercialization of Licensed Products. Payment will be made
following the successful completion and testing of the sub-scale prototype (estimated
to be [ * ]).
	 
	 	12.1.2	 	Category 2 Patents: THE REGENTS will pay for the filing and prosecution of U.S.
patents except that LICENSEE may be required to pay an additional fee for Category 2
Patents added to this License.
	 
	 	12.1.3	 	Category 3 Patents LICENSEE is responsible for filing and prosecution costs of U.S.
patents.
	 
	 	12.1.4	 	For all Categories 1, 2, and 3 Patents, LICENSEE will pay for its share of foreign
filing fees which may be the entire cost (in the event that LICENSEE is exclusively
licensed all the rights hereunder) or a partial share if THE REGENTS has other
licensees in other fields of use. The amount of such partial share will be apportioned
based upon the number of other licensees for such foreign rights.

20

 

	12.2	 	As the party solely responsible for the commercialization of the Invention, LICENSEE
will pay all of the expenses associated with patent interferences, patent appeals to the
USPTO Board of Appeals, patent appeals to a Federal Court, patent re-examinations, and patent
re-issues, as long as the Licensed Patent remains on Exhibit A (LICENSED PATENTS), and such
expenses shall be shared among all current licensees of the Licensed Patents.

	12.3	 	LICENSEE may request foreign rights in Licensed Patents, if such rights are available.
LICENSEE must request such rights in writing, and specify the countries in which it wants
rights, within seven (7) months after the filing date of the U.S. applications. Failure to
request such rights will be considered an election not to seek foreign rights. THE REGENTS
may file patent applications at its own expense in any country in which LICENSEE has not
elected to secure foreign rights, and LICENSEE has no rights to any such foreign applications
and resultant patents, unless such foreign rights are still available and LICENSEE pays for
such rights.

	12.4	 	All costs of preparing, filing, prosecuting, and maintaining foreign patent applications
and patents covering the Inventions listed in Exhibit A (LICENSED PATENTS) will be borne by
LICENSEE, subject to the terms of this Agreement. All such patents will be held in the name
of THE REGENTS and obtained using counsel selected by THE REGENTS. The costs of any
interferences and oppositions for foreign patents will be considered prosecution expenses and
also will be borne by LICENSEE. An advance fee (Fee) will be invoiced to LICENSEE by THE
REGENTS for any future foreign filing of Licensed Patents listed in Exhibit A (LICENSED
PATENTS). THE REGENTS is authorized to pay the incurred fees from the Fee. As evidence of
expenses incurred, THE REGENTS will supply invoices for foreign filing requested by LICENSEE
to LICENSEE. THE REGENTS shall credit to LICENSEE any remaining balance of the Fee not used
for foreign filing expenses incurred. The Fee is not an advance against any other fees or
royalties due THE REGENTS under this Agreement.

	12.5	 	Notwithstanding anything to the contrary in this Article 12, in the event that other third
parties are licensees of the Licensed Patents (for a field of use other than Field of Use)
for which foreign rights are sought, THE REGENTS will use all reasonable efforts to share

21

 

all of the foreign filing costs and expenses described in this Article 12 between and
amongst any other such licensees, and shall not license the Licensed Patents to any third
party in any foreign jurisdiction for which LICENSEE has paid for such foreign rights
without providing LICENSEE with credits for LICENSEE’s previously incurred expenses.

	12.6	 	The preparation, filing, and prosecution of foreign patent applications, as well as
the maintenance of the resulting patents, shall be at the expense of LICENSEE. THE REGENTS
shall invoice LICENSEE for payment of costs for foreign patent application preparation,
filing, prosecution, and maintenance. If such payment is not received within ninety (90)
days, such foreign license rights shall be excluded from this license agreement, unless
such foreign license rights are still available and LICENSEE pays for such rights. THE
REGENTS shall not be liable in any manner for the loss of such foreign license rights
arising due to LICENSEE’s failure to pay such fees on a timely manner. Any overpayments by
LICENSEE for foreign patent filing and maintenance costs shall be credited towards
LICENSEE’s future foreign patent cost obligations.

	12.7	 	Notwithstanding any previous payment of fees or election to pursue such rights,
LICENSEE may, at its sole discretion, terminate its license to any foreign patent
application(s) or patent(s), and its obligation to pay any further costs for those
corresponding foreign rights, upon thirty (30) days written notice to THE REGENTS. THE
REGENTS or the U.S. Government may, at its sole discretion and expense, continue
prosecution and/or maintenance of any patents or applications for which LICENSEE has
relinquished rights.

	12.8	 	LICENSEE will notify THE REGENTS of any change of its status as a small entity (as
defined by the United States Patent and Trademark Office) and of the first sublicense
granted to an entity that does not qualify as a small entity.

	13.	 	PATENT INFRINGEMENT

	13.1	 	In the event that THE REGENTS or LICENSEE learns of infringement that it believes may
have potential commercial significance to any Licensed Patent, the knowledgeable

22

 

party will provide the other (i) with written notice of such infringement and (ii)
with any evidence of such infringement available to it (the “Infringement Notice”).
During the period in which, and in the jurisdiction where, LICENSEE has exclusive
rights under this Agreement, neither THE REGENTS nor LICENSEE will notify a third
party (including the infringer) of infringement or put such third party on notice of
the existence of any Patent Rights without first obtaining consent of the other. THE
REGENTS shall have the right to terminate this Agreement immediately without the
obligation to provide 60 days’ notice as set forth in Paragraph 10.1 if LICENSEE
notifies a third party in writing of infringement or puts such third party on notice
in writing of the existence of any Patent Rights with respect to such infringement
without first obtaining the written consent of THE REGENTS. Both THE REGENTS and
LICENSEE will use their diligent efforts to cooperate with each other to terminate
such infringement without litigation.

	13.2	 	If infringing activity of potential commercial significance by the infringer has
not been abated within ninety (90) days following the date the Infringement Notice
takes effect, LICENSEE may institute suit for patent infringement against the
infringer. THE REGENTS may voluntarily join such suit at its own expense, but may not
thereafter commence suit against the infringer for the acts of infringement that are
the subject of LICENSEE’s suit or any judgment rendered in that suit. LICENSEE may not
join THE REGENTS in a suit initiated by LICENSEE without THE REGENTS’ prior written
consent, unless otherwise required to do so by law or by court order. If, in a suit
initiated by LICENSEE, THE REGENTS is involuntarily joined, LICENSEE will pay any
reasonable costs and expenses incurred by THE REGENTS arising out of such suit,
including but not limited to, any legal fees of counsel that THE REGENTS selects and
retains to represent it in the suit, provided, however, that THE REGENTS shall be
obligated to coordinate any such retention and representation with the activities of
LICENSEE in an effort to minimize such costs and expenses.

	13.3	 	If, within a hundred and twenty (120) days following the date the Infringement
Notice takes effect, infringing activity of potential commercial significance by the
infringer has not been abated and if LICENSEE has not brought suit against the
infringer, THE

23

 

REGENTS may institute suit for patent infringement against the infringer. If THE REGENTS
institutes such suit, LICENSEE may not join such suit without THE REGENTS’ consent and may
not thereafter commence suit against the infringer for the acts of infringement that are the
subject of THE REGENTS’ suit or any judgment rendered in that suit.

	13.4	 	Any recovery or settlement received in connection with any suit will first be allocated to
cover the litigation costs incurred by THE REGENTS and LICENSEE and required to be paid under
this Agreement. Any recovery in excess of litigation costs will be shared between LICENSEE and
THE REGENTS as follows: (a) for any recovery other than amounts paid for willful infringement:
(i) the initiating Party will receive one hundred percent (100%) of the recovery if the other
Party was not a party in the litigation and did not incur any litigation costs, (ii) the
initiating Party will receive seventy-five percent (75%) of the recovery and the other Party,
twenty-five percent (25%), if the other Party was a party in the litigation, but did not incur
any litigation costs, and (iii) each Party will receive fifty percent (50%) of the recovery if
both Parties were active participants in the litigation and both Parties incurred material
litigation costs in connection with the litigation (taking into account the entire expense of
pursuing such litigation); and (b) for any recovery for willful infringement, each Party will
receive fifty percent (50%) of the recovery. THE REGENTS and LICENSEE agree to be bound by all
determinations of patent infringement, validity, and enforceability (but no other issue)
resolved by any final, non-appealable adjudicated judgment in a suit brought in compliance
with this Article 13. Notwithstanding anything else to the contrary herein, the amounts
payable to THE REGENTS under this paragraph, after all litigation costs have been allocated,
shall approximate amounts that would have been payable as earned royalties on the revenues
lost as a result of the actions of the infringing party.

	13.5	 	Any agreement made by LICENSEE for purposes of settling litigation or other dispute shall
comply with the requirements of Article 4 (SUBLICENSING RIGHTS AND OBLIGATIONS) of this
Agreement.

24

 

	13.6	 	Each party will cooperate with the other in litigation proceedings instituted
hereunder but at the expense of the party who initiated the suit (unless such suit is
being jointly prosecuted by the parties).
	 
	13.7	 	Any litigation proceedings will be controlled by the party bringing the suit.
	 
	14.	 	USE OF NAMES AND TRADEMARKS
	 
	 	 	Nothing contained in this Agreement will be construed as conferring any right to
either Party to use in advertising, publicity, or other promotional activities any
name, trade name, trademark, or other designation of the other Party (including a
contraction, abbreviation or simulation of any of the foregoing). Unless consented to
in writing by THE REGENTS the use by LICENSEE of the name “Lawrence Livermore
National Laboratory,” or “The Regents of the University of California,” or the name
of any University of California campus by LICENSEE in advertising, publicity, or
other promotional activities is expressly prohibited.
	 
	15.	 	LIMITED WARRANTY
	 
	15.1	 	THE REGENTS warrants to LICENSEE that it has the lawful right to grant this license.
	 
	15.2	 	Except as expressly set forth in this Agreement, the licenses and the associated
Invention, Patent Rights, Licensed Products, Licensed Services, and Licensed Methods
are provided by THE REGENTS WITHOUT WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OR ANY OTHER WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED. THE
REGENTS MAKES NO EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY THAT THE INVENTION,
PATENT RIGHTS, LICENSED PRODUCTS, OR LICENSED METHODS WILL NOT INFRINGE ANY PATENT,
COPYRIGHT, TRADEMARK OR OTHER RIGHTS.
	 
	15.3	 	Nothing in this Agreement is or will be construed as:

	 	15.3.1	 	a warranty or representation by THE REGENTS as to the validity,
enforceability, or scope of any Patent Rights; or

25

 

	 	15.3.2	 	a warranty or representation that anything made, used, sold, or otherwise
disposed of under any license granted in this Agreement is or will be free from
infringement of patents, copyrights, or other rights of third parties; or

	 	15.3.3	 	an obligation to bring or prosecute actions or suits against third parties for
patent infringement except as provided in Article 13 (PATENT INFRINGEMENT); or

	 	15.3.4	 	conferring by implication, estoppel, or otherwise any license or rights under
any patents or other rights of THE REGENTS other than Patent Rights, regardless
of whether such patents are dominant or subordinate to Patent Rights; or

	 	15.3.5	 	an obligation to furnish any New Developments, know-how, technology, or
technological information not provided in Patent Rights.

	15.4	 	LIMITATION OF LIABILITY — THE REGENTS OR DOE WILL NOT BE LIABLE FOR ANY LOST
PROFITS, COSTS OF PROCURING SUBSTITUTE GOODS OR SERVICES, LOST BUSINESS, ENHANCED
DAMAGES FOR INTELLECTUAL PROPERTY INFRINGEMENT, OR FOR ANY INDIRECT, INCIDENTAL,
CONSEQUENTIAL, PUNITIVE, OR OTHER SPECIAL DAMAGES SUFFERED BY LICENSEE, SUBLICENSEES,
JOINT VENTURES, OR AFFILIATES ARISING OUT OF OR RELATED TO THIS AGREEMENT, FOR ALL
CAUSES OF ACTION OF ANY KIND (INCLUDING TORT, CONTRACT, NEGLIGENCE, STRICT LIABILITY
AND BREACH OF WARRANTY) EVEN IF THE REGENTS HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH
DAMAGES.
	 
	16.	 	INDEMNIFICATION
	 
	 	 	LICENSEE will, and will require its sublicensees to (to the extent permitted by
Federal or applicable State law without the consent of a legislative body, an elected
official, or governmental unit), indemnify, hold harmless, and defend THE REGENTS,
DOE, their officers, employees, and agents; the sponsors of the research that led to
the invention; and the inventors of any invention claimed in the patent under Patent
Rights (including the Licensed Products, Licensed Services, and Licensed Methods
contemplated thereunder) and their employers against any and all amounts paid
pursuant to any claims, suits, losses,

26

 

damage, costs, fees, and expenses alleging that any Licensed Product or Licensed Service
infringes the intellectual property of another party or has injured any other party. THE
REGENTS will, and will require all other parties to be indemnified pursuant to this
paragraph, immediately surrender to LICENSEE the prosecution or defense of any such claim
or suit, and LICENSEE will pay any and all costs, including reasonable attorneys’ fees,
incurred by THE REGENTS in enforcing this indemnification. This indemnification will
include, but will not be limited to, any product liability.

	17.	 	INSURANCE

	17.1	 	LICENSEE will insure its activities relating to this Agreement at its own cost
with an insurance company reasonably acceptable to THE REGENTS. LICENSEE will obtain,
keep in force, and maintain insurance as follows with an insurance company reasonably
acceptable to THE REGENTS or an equivalent program of self-insurance: Comprehensive or
Commercial Form General Liability Insurance, including contractual liability and product
liability, with coverage as follows:

	 	17.1.1	 	Each occurrence coverage of not less than Five Million Dollars ($5,000,000);
and
	 
	 	17.1.2	 	Product Liability Insurance: Completed operations aggregate coverage of not
less than Ten Million Dollars ($10,000,000); and
	 
	 	17.1.3	 	Personal and Advertising Injury: Coverage of not less than Five Million
Dollars ($5,000,000); and
	 
	 	17.1.4	 	General Aggregate (Commercial Form only): Coverage of not less than Ten Million
Dollars ($10,000,000).

	17.2	 	These coverages do not limit the liability of LICENSEE to THE REGENTS in any way.
LICENSEE will provide THE REGENTS, upon request, with certificates of insurance or
self-insurance, including renewals that show compliance with these
requirements. LICENSEE’s
failure to maintain such required insurance will be considered a material breach of this
Agreement.

27

 

	17.3	 	If the required insurance is written on a claims-made form, coverage must
provide a retroactive date of placement before or coinciding with the Effective
Date of this Agreement.

	17.4	 	LICENSEE will maintain the general liability insurance specified in this
Article 17 during the period that the Licensed Patents of THE REGENTS are being used
and/or Licensed Products are being sold or otherwise commercially distributed by
LICENSEE, and for a period of not less than three (3) years thereafter.

	17.5	 	LICENSEE’s insurance coverage must:

	 	17.5.1	 	Provide for at least thirty (30) days advance written notice to THE REGENTS
of cancellation or any modification; and
	 
	 	17.5.2	 	Indicate that DOE, THE REGENTS, and their respective officers, employees,
students, and agents, are endorsed on the policy as additional insureds; and
	 
	 	17.5.3	 	Include a provision that the coverage is primary and does not participate
with or is in excess of any valid and collectible insurance, program, or
self-insurance carried or maintained by THE REGENTS.

	18.	 	WAIVER

	18.1	 	No provision of this Agreement is deemed waived and no breach excused unless
such waiver or consent is made in writing and signed by the waiving or consenting
Party.

	18.2	 	Failure on the part of either Party to exercise or enforce any right of such
Party under this Agreement will not be a waiver by such Party of any right, or operate
to bar the enforcement or exercise of the right at any time thereafter.

	19.	 	ASSIGNABILITY

	19.1	 	This Agreement is binding on and inures to the benefit of THE REGENTS, its
successors and assigns, but is personal to LICENSEE. Except as provided in Paragraph
19.2, any assignment of this Agreement for any reason including but not limited to
merger or sale

28

 

of majority assets is at the sole discretion of THE REGENTS and requires prior
written consent of THE REGENTS, which will not be unreasonably withheld. Except as
provided in Paragraph 19.2, should THE REGENTS approve such assignment, LICENSEE
will pay THE REGENTS an Assignment Fee as set forth in Exhibit C (FEES AND
ROYALTIES) of this Agreement.

	19.2	 	Notwithstanding Paragraph 19.1 above, an assignment to a wholly-owned United
States subsidiary of LICENSEE will not require the consent of THE REGENTS or the
payment of an Assignment Fee.
	 
	20.	 	LATE PAYMENTS
	 
	 	 	In the event that royalty payments, fees, or other monies owed to THE REGENTS are
not received by THE REGENTS when due, LICENSEE will pay to THE REGENTS interest at
a rate of ten percent (10%) simple interest per annum. Such interest will be
calculated from the date payment was due until actually received by THE REGENTS.
Such accrual of interest will be in addition to, and not in lieu of, enforcement
of any other rights of THE REGENTS due to such late payment. LICENSEE will pay any
reasonable costs incurred by THE REGENTS in collecting late payments.
	 
	21.	 	NOTICES
	 
	21.1	 	Any notice or payment required to be given to either Party will be deemed to
have been properly given and to be effective:

	 	21.1.1	 	on the date of delivery if delivered in person; or
	 
	 	21.1.2	 	on the date of mailing if mailed by first-class certified mail, postage paid; or
	 
	 	21.1.3	 	on the date of mailing if mailed by any global express carrier service that
requires the recipient to sign the documents demonstrating the delivery of
such notice of payment;

to the respective addresses given below, or to another address as designated in
writing by the Party changing its address.

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	In the case of LICENSEE:

	 	TOMOTHERAPY INCORPORATED
	 

	 	1240 Deming Way
	 

	 	Madison, WI 53717
	 

	 	Phone: (608) 824-2800
	 

	 	Fax: (608) 824-2996
	 

	 	Attention: Vice President and General Counsel
	 
	 	 
	In the case of THE REGENTS:
	 	 
	 
	 	 
	All correspondence, original
	 	 
	progress reports, and royalty
	 	 
	reports:

	 	Lawrence Livermore National Laboratory
	 

	 	Industrial Partnerships and Commercialization
	 

	 	P.O. Box 808, L-795
	 

	 	7000 East Avenue, L-795
	 

	 	Livermore, CA 94550
	 

	 	Attention: Director, IPAC
	 

	 	Fax: (925) 423-8988
	 
	 	 
	Payments and copies of
	 	 
	corresponding royalty reports:

	 	Lawrence Livermore National Laboratory
	 

	 	P.O. Box 5517
	 

	 	Livermore, CA 94551

	22.	 	GOVERNING LAWS; VENUE; ATTORNEYS FEES

	22.1	 	The Parties will attempt to jointly and promptly resolve any disputes arising from
this Agreement. If the Parties are unable to resolve a dispute within a reasonable time
from one Party’s written notice to the other that dispute resolution has begun, then
either Party may commence proceedings in a court of competent jurisdiction.
	 
	22.2	 	THIS AGREEMENT WILL BE INTERPRETED AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA, excluding any choice of law rules
that would direct the application of the laws of another jurisdiction, but the scope
and validity of any patent or patent application will be governed by the applicable
laws of the country of such patent or patent application. Any legal action related to
this Agreement will be conducted in the State of California.

30

 

	23.	 	PATENT MARKING
	 
	 	 	LICENSEE will mark all Licensed Products and their containers that are made, used, Sold, or
otherwise disposed of under this Agreement in accordance with applicable patent marking
laws.
	 
	24.	 	GOVERNMENT APPROVAL OR REGISTRATION
	 
	 	 	If this Agreement or any associated transaction is required by the law of any nation to be
either approved, permitted, or registered with any governmental agency, LICENSEE will
assume all legal obligations to do so. LICENSEE will notify THE REGENTS if LICENSEE becomes
aware that this Agreement is subject to a United States or foreign government reporting,
permitting, or approval requirement. LICENSEE will make all necessary filings and pay all
costs including fees, penalties, and all other out-of-pocket costs associated with such
reporting, permitting, or approval process, unless otherwise specified in this Agreement.
	 
	25.	 	COMPLIANCE WITH LAWS
	 
	25.1	 	LICENSEE will comply with all applicable international, national, state, regional and
local laws and regulations in performing its obligations hereunder and in its use,
manufacture, Sale, or import of the Licensed Products, Licensed Services, or practice of
the Licensed Method.
	 
	25.2	 	LICENSEE will comply with all applicable United States and foreign laws with respect
to the transfer of Licensed Products and related technical data and the provision of
Licensed Services to foreign countries, including, without limitation, the International
Traffic in Arms Regulations (ITAR) and the Export Administration Regulations (EAR).
	 
	25.3	 	LICENSEE will manufacture Licensed Products and practice the Licensed Method in
compliance with applicable government importation laws and regulations of a particular
country for Licensed Products made outside the particular country in which such Licensed
Products are used or Sold.

					
	 	 	 	 	 
	 
	 	31
	 	 

 

 

	25.4	 	THE REGENTS will provide reasonable assistance to
LICENSEE, at LICENSEE’s
expense, in completing any applications or seeking any approvals of the type described in
this Article 25.
	 
	26.	 	FORCE MAJEURE
	 
	26.1	 	Except for LICENSEE’s obligation to make any payments to THE REGENTS
hereunder, the Parties will not be responsible for any failure to perform due to the
occurrence of any events beyond their reasonable control which render their performance
impossible or onerous, including, but not limited to: accidents (environmental, toxic
spill, etc.); acts of God; biological or nuclear incidents; casualties; earthquakes; fires;
floods; governmental acts, orders or restrictions; inability to obtain suitable and
sufficient
labor, transportation, fuel and materials; local, national, or state emergency; power
failure
and power outages; acts of terrorism; strike; and war.
	 
	26.2	 	Either Party to this Agreement, however, will have the right to terminate this Agreement
upon thirty (30) days’ prior written notice if either Party is unable to fulfill its
obligations
under this Agreement due to any of the causes mentioned in Paragraph 26.1, where such
identified cause has prevented the performance of its obligations for a consecutive period
of one (1) year.
	 
	26.3	 	In the event that an event described in Paragraph 26.1 occurs, the Parties agree that any
time-sensitive obligations, including, without limitation, the Performance Obligations set
forth in Exhibit E and the payment of minimum annual royalties set forth in Exhibit C,
shall be tolled for a mutually agreed upon time, taking into account the nature of the
occurrence, but in no event, for a time period shorter than the duration of the event giving
rise to such tolling.
	 
	27.	 	UNITED STATES PREFERENCE
	 
	 	 	LICENSEE agrees that any Licensed Products embodying the Invention or produced through the
use thereof will be manufactured substantially in the United States.

					
	 	 	 	 	 
	 
	 	32
	 	 

 

 

	28.	 	PROPRIETARY INFORMATION
	 
	 	 	Other than as specified hereunder, the existence and terms of this Agreement shall be
considered proprietary information. THE REGENTS shall not disclose the royalties paid,
royalty reports, or development reports submitted by LICENSEE, or any of the information
contained in those reports, without LICENSEE’s prior written consent. THE REGENTS may
release to the inventors and senior administrators employed by THE REGENTS the terms of this
Agreement upon their request. If such release is made, THE REGENTS will give notice of the
proprietary nature of the terms and require that the recipient maintain the confidentiality.
If a third party inquires whether a license to Licensed Patents is available, THE REGENTS
may disclose the existence of this Agreement and the extent of the grant in Article 3
(LICENSE GRANT) to the third party, but will not disclose the name of
LICENSEE or any other
terms, except with LICENSEE’s consent or as required under a government audit, the
California Public Records Act, the Freedom of Information Act, or other applicable law. THE
REGENTS agree to provide written notice to LICENSEE of any disclosure made by THE REGENTS to
a third party pursuant to this Article 28, including the identity of the third party and the
information disclosed.
	 
	29.	 	MISCELLANEOUS
	 
	29.1	 	The headings of the several sections are inserted for convenience of reference only and
are not intended to affect the meaning or interpretation of this Agreement.
	 
	29.2	 	No amendment or modification of this Agreement will be valid or binding upon the
Parties unless made in writing and signed on behalf of each Party.
	 
	29.3	 	This Agreement with the attached Exhibits A, B, C, D and E embodies the entire
understanding of the Parties and supersedes all previous communications,
representations, or understandings, whether oral or written, between the Parties relating to
the subject matter hereof.
	 
	29.4	 	If any of the provisions contained in this Agreement are held to be invalid, illegal, or
unenforceable in any respect, such invalidity, illegality, or unenforceability will not
affect

					
	 	 	 	 	 
	 
	 	33
	 	 

 

 

	 	 	any other provisions hereof, and this Agreement will be construed as if such invalid or
illegal or unenforceable provisions had never been contained herein.
	 
	29.5	 	No provisions of this Agreement are intended or will be construed to confer upon or give
to any person or entity other than THE REGENTS and LICENSEE any rights, remedies,
or other benefits under, or by reason of, this Agreement.
	 
	29.6	 	In performing their respective duties under this Agreement, each of the Parties will be
operating as an independent contractor. Nothing contained herein will in any way
constitute any association, partnership, or joint venture between the Parties hereto, or be
construed to evidence the intention of the Parties to establish any such relationship.
Neither Party will have the power to bind the other Party or incur obligations on the other
Party’s behalf without the other Party’s prior written consent.

In witness whereof, both THE REGENTS and LICENSEE have executed this Agreement, in duplicate
originals, by their respective officers hereunto duly authorized, on the date and year
hereinafter written.

	 	 	 	 	 	 	 
	TOMOTHERAPY INCORPORATED	 	THE REGENTS OF THE

UNIVERSITY OF CALIFORNIA
	 
	 	 	 	 	 	 
	 	 	 	 	LAWRENCE LIVERMORE

NATIONAL LABORATORY
	 
	 	 	 	 	 	 
	By:

	 	/s/ Paul J. Reckwerdt
	 	By:	 	/s/ George H. Miller
	 

	 	 
	 	 	 	 
	 

	 	(Signature)
	 	 	 	(Signature)
	Name:

	 	Paul J. Reckwerdt
	 	Name:
	 	George H. Miller
	Title:

	 	President
	 	Title:
	 	 Director, LLNL
	 
	Date signed: Feb 27,
2007	 	Date signed: Feb. 27, 2007

					
	 	 	 	 	 
	 
	 	34
	 	 

 

 

EXHIBIT A — LICENSED PATENTS

CATEGORY 1 PATENTS

UNITED STATES PATENTS:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Invention	 	 	 	 	 	 	 	 
	Disclosure	 	Patent	 	 	 	 	 	 
	Number	 	Number	 	Title	 	Inventors	 	Filing Date	 	Issue
Date
	IL-9938

	 	 	6,331,194	 	 	Process for Manufacturing

Hollow Fused-Silica

Insulator Cylinder
	 	Stephen E. Sampayan,

Michael L. Krogh,

Steven C. Davis

Non-LLNL: Ben

Rosenblum
	 	07/08/97
	 	12/18/01
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	IL-10368

	 	 	7,173,385	 	 	Compact Accelerator
	 	George J. Caporaso,

Stephen E. Sampayan,

Hugh C. Kirbie
	 	01/14/05
	 	02/06/07

UNITED STATES PATENT APPLICATIONS:

	 	 	 	 	 	 	 	 	 
	Invention	 	Patent	 	 	 	 	 	 
	Disclosure	 	Application	 	 	 	 	 	 
	Number	 	Number	 	Title	 	Inventors	 	Filing Date
	IL-11372

	 	11/586,377
	 	Single Pulse Traveling Wave

Accelerator
	 	George J. Caporaso, Scott

D. Nelson, Brian R. Poole
	 	10/24/06
	 
	 	 	 	 	 	 	 	 
	IL-11425

	 	11/450,429
	 	Bipolar Pulse Forming Line
	 	Mark A. Rhodes
	 	06/09/06
	 
	 	 	 	 	 	 	 	 
	IL-11482

	 	11/586,468
	 	Method of Controlling the Spatial
Distribution of Large Electric
Fields at Conductor Insulator
Junctions
	 	James S. Sullivan, George
Caporaso, Stephen E.
Sampayan, David M. Sanders
	 	10/24/06
	 
	 	 	 	 	 	 	 	 
	IL-11514

	 	11/599,797
	 	Castable Dielectric Composite

Linear Wall Accelerator
	 	David M. Sanders, 
Stephen
E. Sampayan

Non-LLNL: H.M. Stoller, 

Kirk Slenes
	 	11/14/06
	 
	 	 	 	 	 	 	 	 
	[ * ]

	 	[ * ]
	 	[ * ]
	 	[ * ]
	 	[ * ]

35

 

FOREIGN PATENT APPLICATIONS:

	 	 	 	 	 	 	 	 	 
	Invention	 	 	 	 	 	 	 	 
	Disclosure	 	International	 	 	 	 	 	 
	Number	 	Serial Number	 	Title	 	Inventors	 	Filing Date
	IL-10368

	 	PCT/US05/01548
[EP05722455.2]
	 	Improved Compact Accelerator
	 	George J. Caporaso, 
Stephen E. Sampayan,

Hugh C. Kirbie
	 	01/18/05
	 
	 	 	 	 	 	 	 	 
	IL-10368

	 	PCT/US05/01548

[JP]
	 	Improved Compact Accelerator
	 	George J. Caporaso, 

Stephen E. Sampayan,

Hugh C. Kirbie
	 	01/18/05
	 
	 	 	 	 	 	 	 	 
	IL-10368

	 	PCT/US05/01548

[CA]
	 	Improved Compact Accelerator
	 	George J. Caporaso, 

Stephen E. Sampayan,

Hugh C. Kirbie
	 	01/18/05
	 
	 	 	 	 	 	 	 	 
	IL-11372

	 	PCT/US06/4154
	 	Sequentially Pulsed Traveling Wave

Accelerator
	 	George J. Caporaso, 

Scott D. Nelson
	 	10/24/06
	 
	 	 	 	 	 	 	 	 
	IL-11482

	 	PCT/US06/41814
	 	Optically-Initiated Silicon Carbide

High Voltage Switch
	 	James Sullivan, 
George Caporaso, 
Stephen E. Sampayan, 
David
Sanders
	 	10/24/06
	 
	 	 	 	 	 	 	 	 
	IL-11514

	 	PCT/US06/44297
	 	Castable Dielectric Wall

Accelerator
	 	David M. Sanders, 

Stephen E. Sampayan 

Non-LLNL: H.M.
Stoller, 
Kirk Slenes
	 	11/14/06

The following Records of Inventions (ROIs) are to be included as Category 1 Patents upon
filing of the associated patent application with the USPTO.

INVENTION DISCLOSURES

[ * ]

 

CATEGORY 2 PATENTS 

NONE CURRENTLY

CATEGORY
3 PATENTS 

NONE CURRENTLY

37

 

EXHIBIT B — RIGHTS GRANTED AND PERFORMANCE OBLIGATIONS

NOTICE 

LICENSEE considers information in this Exhibit B to be Proprietary.

	 	 	 
	B.1

	 	Rights Granted
	 
	 	 
	B.1.1

	 	Subject to the limitations set forth in this Agreement, THE REGENTS hereby grants to
LICENSEE an exclusive, nontransferable (other than in accordance with the terms and conditions
contained herein), royalty-bearing, license under Patent Rights (a) to make, use, Sell, offer
for Sale, and import or export, subject to compliance with Article 25, Licensed Products and
Licensed Services in the Field of Use; and (b) to practice Licensed Methods in the Field of
Use.
	 
	 	 
	B.1.2

	 	“Field of Use” means Particle and Radiotherapy

	 	 	 	 	 
	 

	 	B.1.2.1
	 	To maintain exclusivity in the Particle therapy field of use, LICENSEE will have
to submit a commercialization plan for each particle therapy application (e.g.,
carbon-12, heavy ion particle, etc.) even if the plan simply involves
sublicensing. The first of these commercialization plans beyond proton therapy
will be required [ * ] years after First Commercial Acceptance, so as not to
distract the development of the proton therapy system. If LICENSEE fails to submit a
commercialization plan for any particle therapy application within
the required [ * ] years after First Commercial Acceptance, the Field of Use would be reduced to
Proton and Radiotherapy.
	 
	 	 	 	 
	 

	 	B.1.2.2
	 	LICENSEE will have an option to negotiate to expand the Field of Use to
include Isotope Generation, provided that LICENSEE submits a separate
commercialization plan within the same time required for it to maintain
exclusivity in particle therapies other than proton therapy, as specified in
Paragraph B.1.2.1.

38

 

	 	 	 	 	 
	 

	 	B.1.2.3
	 	THE REGENTS will ensure that so long as LICENSEE retains exclusive rights in the
Particle and Radiotherapy Field of Use, no other sponsored research agreement,
license, or any other type of agreement or arrangement in the future shall encumber
Category 1 Patents, Category 2 Patents, and Category 3 Patents in the Particle and
Radiotherapy Field of Use.

	 	 	 
	B.2

	 	Sublicensing Rights
	 
	 	 
	 

	 	THE REGENTS also grants to LICENSEE the right to issue sublicenses of the rights granted to
it in Paragraph B.1.1 above to Affiliates, Joint Ventures, and third parties
(“sublicensees”) in the Field of Use, having rights no greater than those granted to
LICENSEE, provided that, at the time of sublicensing, LICENSEE retains exclusive rights in
the Field of Use for the Licensed Patents, Licensed Services, or Licensed Methods that are
the subject of such sublicense. For the avoidance of doubt, Affiliates and Joint Ventures
shall have no licenses under the Patent Rights unless such Affiliates and Joint Ventures are
granted a sublicense.
	 
	 	 
	B.3

	 	Rights Excluded
	 
	 	 
	 

	 	Rights that are not specifically granted elsewhere in this Agreement are specifically
excluded from the License.
	 
	 	 
	B.4

	 	Future Rights
	 
	 	 
	B.4.1

	 	LICENSEE may make a written request to THE REGENTS to add some Category 2 Patents to
this License, and THE REGENTS agrees to amend Exhibit A of this License accordingly provided
that LICENSEE pays any additional fees if required, as provided in Paragraph 12.1.2 of this
Agreement.
	 
	 	 
	B.4.2

	 	LICENSEE may make a written request to THE REGENTS to add Category 3 Patents to this
Agreement for no additional license fees, except that LICENSEE will be required to pay
patenting costs in accordance with Article 12 of this License. To the extent that
copyrightable material maybe needed to successfully commercialize the Invention, such
copyrights will be included in Exhibit A.

39

 

	 	 	 
	B.4.3

	 	Pursuant to B.1 .2.2, if LICENSEE submits a commercialization plan for the Field of Use of
Isotope Generation within [ * ] years after First Commercial Acceptance, the future rights
to the Field of Use of Isotope Generation would be included in this Agreement.
	 
	 	 
	B.4.4

	 	At the conclusion of the CRADA, either through termination or six (6) months after
completion, LICENSEE will have the opportunity to review all inventions generated during the
course of the CRADA, to decide which inventions are needed to commercialize the Invention, and
to amend Exhibit A to include such inventions, at which time all the future rights identified
in this Section B.4 would have been listed in Exhibit A. Other Future Rights beyond those
discussed herein must be negotiated in a separate Agreement.
	 
	 	 
	B.5

	 	Performance Obligations
	 
	 	 
	B.5.1

	 	LICENSEE will develop with THE REGENTS by the completion of the DWA subscale prototype
(estimated to be [ * ], a more detailed schedule (Exhibit E “SCHEDULE”) that
provides dates for each of the following obligations. To maintain exclusivity, specific dates
must be mutually agreed to by THE REGENTS and LICENSEE by the later of (a) [ *
] or that date when the DWA subscale prototype is completed (“DWA Subscale Completion”). This
Agreement must be amended with the SCHEDULE within sixty (60) days of the DWA Subscale
Completion. It is expected that the SCHEDULE will be updated at least once annually using a
form provided in the SCHEDULE during the course of the CRADA as new information is developed.
Both parties signing the updated SCHEDULE form will be considered an amendment to the
SCHEDULE.

	 	 	 	 	 
	 

	 	B.5.1.1
	 	A [ * ] milestone that is related to the full-scale development of the DWA
	 
	 	 	 	 
	 

	 	B.5.1.2
	 	A [ * ] milestone that is related to the full-scale development of the DWA
	 
	 	 	 	 
	 

	 	B.5.1.3
	 	The estimated time after the successful testing of the full-scale DWA when the
first therapy system incorporating the DWA will be installed at a location to be
determined by the Parties.

40

 

	 	 	 	 	 
	 

	 	B.5.1.4
	 	The date when LICENSEE will submit the required Federal Drug
Administration (“FDA”) notification/application
	 
	 	 	 	 
	 

	 	B.5.1.5
	 	The date when LICENSEE will achieve First Commercial Acceptance, estimated
to be one year after FDA approval
	 
	 	 	 	 
	 

	 	B.5.1.6
	 	A mutually-agreed process to jointly amend the SCHEDULE

	 	 	 
	B.5.2

	 	LICENSEE will hire or contract with the people it believes to be reasonably necessary to
commercialize the DWA technology within sixty (60) days of the DWA Subscale Completion.
	 
	 	 
	B.5.3

	 	LICENSEE will negotiate in good faith with the University of California Davis Health
System (“UCDHS”) and Lawrence Livermore National Laboratory (“LLNL”) for a period not to
exceed six (6) months after the Effective Date, regarding the timing, budget for,
specifications, and location of the space required to house the prototype therapy system
incorporating the DWA. On or before the closure of the six-month negotiation period following
the Effective Date, UCDHS shall determine whether the prototype therapy system will be housed
at UCDHS. Notwithstanding anything else to the contrary in this Agreement, failure to reach
agreement within the six (6) month period shall not affect this Agreement in any way, except
that LICENSEE shall work in good faith with THE REGENTS to locate the first prototype therapy
system at another facility.
	 
	 	 
	B.5.4

	 	LICENSEE will achieve cumulative commercial acceptances of [ *
] units of proton therapy systems three years after First Commercial Acceptance, subject to Paragraph 5.6 below.
	 
	 	 
	B.5.5

	 	Other performance obligations for applications beyond proton therapy based on
LICENSEE’s commercialization plan pursuant to Paragraphs B.1.2.1 and B.1.2.2.
	 
	 	 
	B.5.6

	 	The sales requirements specified above may, by mutual written consent of LICENSEE and THE
REGENTS, be amended and/or extended at the written request of LICENSEE to THE REGENTS, based
upon legitimate business reasons specified in reasonable detail in such written request. THE
REGENTS shall not unreasonably withhold, condition, or

41

 

	 	 	 
	 

	 	delay their consent to an amendment or extension provided that LICENSEE can provide a good
business reason for the delay. Any delay beyond the reasonable control of LICENSEE will be
deemed reasonable cause for amendment or extension of a Performance Obligation. Any delay
resulting in an extension of the First Commercial Acceptance shall be accompanied by a
corresponding extension of payments required of LICENSEE, including payments for milestones,
earned royalties, and minimum royalties.
	 
	 	 
	B.5.7

	 	Pursuant to Paragraph 7.1, the first progress report will be due on February 28, 2008.
	 
	 	 
	B.5.8

	 	LICENSEE will proceed commercially diligently to develop, file relevant regulatory
applications for and attempt to obtain relevant regulatory commercialization approvals with
respect to the manufacturing, marketing, and sale of Licensed Products.
	 
	 	 
	B.5.9

	 	LICENSEE will submit a commercialization plan for applications beyond proton therapy,
as provided in Paragraphs B.1.2.1 and B.1.2.2.

42

 

EXHIBIT C — FEES AND ROYALTIES

NOTICE

LICENSEE considers information in this Exhibit C to be Proprietary.

C.1 License Issue Fee

	C.1.1	 	As partial consideration for this Agreement, LICENSEE will pay to THE REGENTS a
nonrefundable issue fee of $[ * ] (License Issue Fee), to be paid when LICENSEE executes the Agreement, and pay Milestone Payments based on the following
schedule of events:

	 	C.1.1.1	 	$[ * ], within thirty (30) days of the
date on which the parties mutually agree they have completed a working sub-scale
prototype of the DWA.
	 
	 	C.1.1.2	 	$[ * ], within thirty (30) days of the date on
which the parties mutually agree they have completed a working SiC or comparable
switching prototype (which may be completed with the sub-scale prototype).
	 
	 	C.1.1.3	 	$[ * ], within thirty (30) days of
the date on which the parties mutually agree they have completed a working full-scale
prototype of the DWA

	C.1.2	 	THE REGENTS will execute the Agreement after receipt of LICENSEE’s executed copies
of the Agreement and payment of the License Issue Fee.

	C.1.3	 	The License Issue Fee and Milestone Payments will not be credited against any other
royalty or fee due from LICENSEE to THE REGENTS.

C.2 Earned Royalties

	C.2.1	 	Earned Royalties on Licensed Products. In addition to the License Issue Fee and Milestone
Payments, LICENSEE will pay THE REGENTS an earned royalty of [ * ]% on Net Sales of Licensed Products. Payments of earned royalties will be in

43

 

	 	 	accordance with the requirements of Article 5 (FEES, ROYALTIES AND PAYMENTS) and Article 7
(PROGRESS AND ROYALTY REPORTS) of this Agreement.

	C.2.2 	 	Earned Royalties on Licensed Services. In addition to the License Issue Fee and
Milestone Payments, LICENSEE will pay THE REGENTS an earned royalty of [ * ]%
on Net Sales of Licensed Services. Payments of earned royalties will be in accordance with
the requirements of Article 5 (FEES, ROYALTIES AND PAYMENTS) and Article 7 (PROGRESS AND
ROYALTY REPORTS) of this Agreement.

C.2.3 Provisions for Earned Royalty Re-Evaluation

	 	C.2.3.1	 	Uncertainty of Clinical System Development Costs at UCDHS. In the event that
LICENSEE’s sole combined costs (outside of funds contributed by THE REGENTS) to
develop the full-scale DWA and the clinical system at UCDHS exceed $[ * ], the Parties agree to re-evaluate the Earned Royalty Rate provided in Paragraph C.2.1 and amend it
as mutually agreed to by the Parties.
	 
	 	C.2.3.2 	 	Uncertainty of Production Costs of Licensed Products. In the event that the
current earned royalties put the Licensed Products at a competitive disadvantage, the
Parties agree to re-evaluate the Earned Royalty Rate provided in Paragraph C.2.1 and
amend it as mutually agreed to by the Parties, taking into account the production
costs, the commercial market of the DWA, and the likely price modifications necessary
to make the Licensed Products more competitive in the marketplace.

	C.2.4	 	In the event that LICENSEE grants sublicenses, LICENSEE will pay to THE
REGENTS earned royalties from such sublicensing in accordance with the terms and
conditions in this Agreement.

C.3 Minimum Annual Royalties

	C.3.1	 	Subject to the terms and conditions of this Agreement, LICENSEE will pay to THE
REGENTS a minimum annual royalty according to the requirements of Article 5 and the schedule
below. The minimum annual royalty paid to THE REGENTS during a calendar

44

 

	 	 	year will be credited against the earned royalty due and owing for the calendar year in
which the minimum payment was made.

	 	 	 	 	 
	Calendar year	 	Minimum annual royalty	 	Due date
	2008
	 	$[ * ]	 	February 28, 2008
	2009
	 	$[ *
]	 	February 28, 2009
	2010
	 	$[ *
]	 	February 28, 2010
	2011
	 	$[ *
]	 	February 28, 2011
	2012
	 	$[ *
]	 	February 28, 2012
	[ *
]
	 	 	 	 
	2013
	 	$[ *
]	 	February 28, 2013
	2014
	 	$[ *
]	 	February 28, 2014
	2015
	 	$[ *
]	 	February 28, 2015
	2016
	 	$[ *
]	 	February 28, 2016
	2017
	 	$[ *
]	 	February 28, 2017 and
 every February 28 thereafter
 for the life of this Agreement

	C.3.2	 	The dates for First Commercial Acceptance and beyond, and the corresponding minimum annual
royalties starting with $[ * ], may be modified pursuant to Exhibit E (SCHEDULE). If the
First Commercial Acceptance is modified to a later year, then the minimum annual royalty for
the original year that had the First Commercial Acceptance would be $[ * ] more than that of the year immediately preceding the original year that had the First Commercial Acceptance. For
example, if the First Commercial Acceptance has been modified to [ * ], then the $[ *
] minimum annual royalty would start in [ * ], and [ * ] will have a minimum annual royalty of
$[ * ] ($[ * ] more than the [ * ] minimum annual royalty).

C.4  Assignment Fee

	 	 	Except as provided in Paragraph 19.2, LICENSEE will pay THE REGENTS an Assignment
Fee of $[ * ] as per Article 19 (ASSIGNABILITY)
prior to such assignment being approved by THE REGENTS.

45

 

EXHIBIT D — MUTUAL NONDISCLOSURE AGREEMENT

46

 

MUTUAL NONDISCLOSURE AGREEMENT FOR EXCHANGE OF INFORMATION 
WITH
LAWRENCE LIVERMORE NATIONAL LABORATORY

This Agreement, effective on the date the last party signs, is made by and between TOMOTHERAPY,
INC. located at 1240 Deming Way, Madison, WI 53717-1954 and THE REGENTS OF THE UNIVERSITY OF
CALIFORNIA, located at 1111 Franklin Street, Oakland, CA 94607 (“THE REGENTS”), under its Contract
No. W-7405-ENG-48 with the U.S. DEPARTMENT OF ENERGY (“DOE”), as operators of the LAWRENCE
LIVERMORE NATIONAL LABORATORY, located at 7000 East Avenue, Livermore, CA 94550 (“LLNL”).

WHEREAS, THE REGENTS, as operators of LLNL, and TOMOTHERAPY, INC. (hereinafter individually
referred to as the “PARTY” or collectively as the “PARTIES”) wish to exchange certain confidential
and proprietary information relating to LLNL’s Dielectric Wall Accelerator technology and research
plans and TomoTherapy, Inc.’s radiotherapy technology, business, and commercialization plans
(“PROPRIETARY INFORMATION”), this Agreement will govern the conditions of mutual disclosure of
PROPRIETARY INFORMATION by the PARTIES.

The PARTIES hereby agree:

	 	(1)	 	To perform all terms of this Agreement and to maintain the PROPRIETARY INFORMATION in
confidence, giving it the same degree of care, but no less than a reasonable degree of
care, as the receiving PARTY exercises with its own proprietary information to prevent its
unauthorized disclosure.
	 
	 	(2)	 	To exchange and use the PROPRIETARY INFORMATION solely for the purpose of evaluation,
testing, and development of potential collaborations, joint ventures, and/or license of the
technology between the PARTIES.
	 
	 	(3)	 	That neither PARTY, without the prior written consent of the other, will disclose any
portion of the PROPRIETARY INFORMATION to others except to their employees, agents,
consultants, subcontractors or Government personnel having a need to know in order to
accomplish the sole purpose stated above, and who are bound by a like obligation of
confidentiality under this Agreement.
	 
	 	(4)	 	That neither PARTY will have any obligation, nor will the DOE, assume any
liability with respect to any portion of the PROPRIETARY INFORMATION that:

	 	(a)	 	the receiving PARTIES can demonstrate by written record was previously known to
them;
	 
	 	(b)	 	is, or becomes, available to the public through no fault of the PARTIES;
	 
	 	(c)	 	is lawfully obtained by the PARTIES from a third party who
is not under an obligation of confidentiality with respect to the
information disclosed; or
	 
	 	(d)	 	is independently developed by or for the PARTIES independent of any
disclosure hereunder, as demonstrated by written record, and such development was
begun prior to any disclosure under this agreement.

	 	(5)	 	That PROPRIETARY INFORMATION disclosed by the PARTIES will be in writing and clearly
marked “PROPRIETARY INFORMATION” or its equivalent. If such PROPRIETARY INFORMATION is
initially disclosed orally or by demonstration, it will be identified as PROPRIETARY
INFORMATION or its equivalent at the time of disclosure. The disclosing PARTY will, within
thirty (30) days thereafter: (a) reduce such PROPRIETARY INFORMATION to writing or other
tangible form, referencing the date and type of PROPRIETARY INFORMATION disclosed, and mark
it as PROPRIETARY INFORMATION or its equivalent; and (b) deliver a copy to the receiving
PARTY. All protections and restrictions as to use and disclosure will apply during such
thirty (30) day period.
	 
	 	(6)	 	That all rights and title to the PROPRIETARY INFORMATION disclosed under this Agreement
will remain the property of disclosing PARTY unless otherwise agreed to in writing by the
PARTIES.
	 
	 	(7)	 	That PROPRIETARY INFORMATION provided by any disclosing PARTY to any receiving PARTY
shall be returned to the disclosing PARTY within five (5) days of written request for such
return by the disclosing PARTY.
	 
	 	(8)	 	That no copies shall be made by a receiving PARTY of any PROPRIETARY INFORMATION
without the express written consent of the disclosing PARTY. Any copies so authorized shall
be returned to the disclosing PARTY or destroyed in accordance with the term and demand
provisions of this Agreement.

 

 

	 	(9)	 	That the receiving PARTY agrees that with regard to any patent application provided
as PROPRIETARY INFORMATION under this Agreement that no protest, public use proceeding,
copied claims for provoking interference, or other action impeding issuance of any
patent based on the disclosed application shall be filed by the receiving PARTY prior
to issuance of such patent.
	 
	 	(10)	 	The PARTIES agree that any photocopy or facsimile copy of this fully-executed
Agreement shall have the same legal force and effect as any copy bearing original
signatures of the PARTIES.

	 	 	 	 	 	 	 
	Technical Contact for Company:	 	Technical Contact for LLNL:
	 
	 	 	 	 	 	 
	Name:

	 	T. Rockwell Mackie
	 	Name:
	 	George Caporaso
	Company:

	 	TomoTherapy, Inc.
	 	Company:
	 	Lawrence Livermore National Laboratory
	Address:

	 	1240 Deming Way
	 	Address:
	 	7000 East Avenue, L-645
	 

	 	Madison, WI 53717-1954
	 	 	 	P.O. Box 808
	 

	 	 	 	 	 	Livermore, CA 94550
	Phone:

	 	608 824 2800
	 	Phone:
	 	925 422 7852
	Fax:

	 	608 824 2996
	 	Fax:
	 	925 4221767
	Email:

	 	trmackie@facstaff.wisc.edu
	 	Email:	 	 

It is further agreed that the furnishing of PROPRIETARY INFORMATION does not constitute any
grant or license to the other PARTY for any legal rights now or hereinafter held by either
PARTY.

This Agreement will be subject to, and interpreted in accordance with, the laws of the State of
California,

Unless terminated earlier by thirty (30) days written notice by either PARTY to the other, this
Agreement will remain in effect for two (2) year(s) from the effective date first written above, at
which time the receiving PARTY will return or destroy the PROPRIETARY INFORMATION within thirty
(30) days of the termination of this Agreement. If the PROPRIETARY INFORMATION is destroyed, a
certificate of destruction must be furnished to the disclosing PARTY within the thirty (30) days.
The secrecy and non-use obligations of the receiving PARTY set forth above will remain in effect
for five (5) years from the effective date. Notwithstanding the forgoing, the secrecy and non-use
obligations of the receiving PARTY set forth above will remain in effect indefinitely for any
PROPRIETARY INFORMATION that is identified to the receiving party as a trade secret.

The receiving PARTY acknowledges its obligations to control access to technical data under the
U.S. Export Laws and Regulations and agrees to adhere to such Laws and Regulations with regard
to any technical data received under this Agreement;

Any modification to this Agreement must be in writing and signed by the duly authorized
representative of each PARTY.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	THE REGENTS OF THE UNIVERSITY OF CALIFORNIA,	 	 
	TOMOTHERAPY, INC.	 	LAWRENCE LIVERMORE NATIONAL LABORATORY	 	 
	 
	 	 	 	 	 	 	 	 
	Signature :

	 	/s/ Shawn D. Guse
 

	 	Signature:
	 	/s/ Kathryn Rauhut
 

	 	 
	Type Name:

	 	Shawn D. Guse
	 	Name:
	 	Kathryn Rauhut	 	 
	Title: Vice
President and General Counsel

	 	Title: Assistant Laboratory Counsel
Office of Laboratory Counsel
	 	 
	 
	Date: January 11, 2006

	 	Date:
	 	1/11/06	 	 

			
	RETURN TO:	 	Lawrence Livermore National
Laboratory 
ATTN: Terry Contreras
 7000 East
Avenue 
P.O. Box 808, L-795 
Livermore, CA 94551

			
	 	 	 
	cc: Genaro Mempin L-795; George Caporaso L-645
	 	 
	PAT Directorate	 	 

 

 

EXHIBIT
E - SCHEDULE

NOTICE 

LICENSEE considers information in this Exhibit E to be Proprietary.

Pursuant to Paragraph B.5.1 of Exhibit B (RIGHTS GRANTED AND PERFORMANCE OBLIGATIONS), LICENSEE
will develop with THE REGENTS by December 31, 2007, a more detailed schedule (“SCHEDULE”) that
provides for the following, each of which shall be a Performance Obligation.

	 	 	 
	E.1

	 	Milestones

	 	 	 	 	 
	Reference	 	Milestone	 	Date
	 
	 	 	 	 
	B.5.1.1

	 	A [ * ] milestone related to DWA full-scale development
	 	[ *
]
	 
	 	 	 	 
	B.5.1.2

	 	A [ * ] milestone related to DWA full-scale development
	 	[ *
]
	 
	 	 	 	 
	B.5.1.3

	 	Installation of the first therapy system incorporating
the DWA at the location to be determined by both
Parties
	 	[ *
]
	 
	 	 	 	 
	B.5.1.4

	 	Submission of required FDA notification/application
	 	[ *
]
	 
	 	 	 	 
	B.5.1.5

	 	First Commercial Acceptance
	 	[ *
]

	 	 	 
	E.2

	 	Amendment Process (Reference B.5.1.6)
	 
	 	 
	E.2.1

	 	Periodic reviews of the development of both the DWA and the proton therapy system will
be conducted by Parties, who will jointly appoint the members of the reviewing body.
	 
	 	 
	E.2.2

	 	Parties will review and update this schedule during the course of the CRADA at least
once annually by September 30 and amend this Agreement accordingly.
	 
	 	 
	E.2.3

	 	By the termination or completion of the CRADA, dates must be furnished, mutually
agreed to, and entered into this License Schedule.

47exv10w5

 

Exhibit 10.5

AMENDMENT ONE

To

LIMITED EXCLUSIVE PATENT LICENSE AGREEMENT

For

DIELECTRIC WALL ACCELERATOR TECHNOLOGY

For Particle and Radiotherapy

Between

LAWRENCE LIVERMORE NATIONAL SECURITY, LLC

and

TOMOTHERAPY INCORPORATED

LLNL Case No. TL02168-0.1

Lawrence Livermore National Laboratory

Industrial Partnerships Office 
P.O. Box 808, L-795, Livermore, CA 94551

April 8, 2008

Confidential treatment has been requested for portions of this exhibit.
The copy filed herewith omits the information subject to the confidentiality request.
Omissions are designated as [ * ].
A complete version of this exhibit has been filed separately with the
Securities and Exchange Commission.

 

 

AMENDMENT ONE 
April 8,
2008

to

License Agreement — LLNL Case Number TL02168-0.0

For Dielectric Wall Accelerator Technology

Between TomoTherapy Incorporation and

Lawrence Livermore National Security, LLC

Effective February 23, 2007

This Amendment One to the License Agreement by and between Lawrence Livermore National
Security, LLC (“LLNS”) and TomoTherapy Incorporated (“LICENSEE”) will be effective as of the
date of execution of this Amendment by the last signing Party. This Amendment and the
associated License Agreement are subject to overriding obligations to the Federal Government
pursuant to the provisions of LLNS’s Contract No DE-AC52-07NA27344 with the United States
Department of Energy (“DOE”) for the operation of the Lawrence Livermore National Laboratory
(“LLNL”).

This Amendment One will: 1) update Exhibit A (LICENSED PATENTS); 2) provide the terms under
which LICENSEE can expand the Field of Use in Exhibit B (RIGHTS GRANTED AND PERFORMANCE
OBLIGATIONS; 3) update Exhibit E (SCHEDULE); and 4) add the correspondences between LLNS and
LICENSEE that discuss the rationale for expanding the Field of Use, as Exhibit F (TERMS FOR
FIELD OF USE EXPANSION). All other terms and conditions remain the same.

Therefore, in consideration of the mutual covenants and obligations recited herein, LLNS and
LICENSEE hereby amend the License Agreement as follows:

	1.	 	Article 1 (BACKGROUND)

Amend to add:

	1.16	 	LICENSEE formally requested an expansion of the field of use of this Agreement on
January 29, 2008, to which LLNS formally replied on February 1, 2008, listing the terms

1

 

	 	 	under which the expansion would be granted. Both letters are incorporated
in this Agreement as Exhibit F (TERMS FOR FIELD OF USE EXPANSION).

	2.	 	Article 2 (DEFINITIONS)

Replace:

	 	2.19	 	“Isotope generation” means the production of radioisotopes, e.g., F-18
fluorodeoxygluscose (F-18 FDG) and other radiopharmaceuticals for diagnostic
applications.

With:

	 	2.19	 	“Commercial DWA,” as opposed to “National Security DWA,” means
the use of the DWA for all commercial applications, both medical and
industrial, other than the “National Security DWA” field of use. Such
applications include, but are not limited to, particle and radiotherapy,
isotope generation, radiology, radiography, and other applications where
particle accelerators are commercially used. “National Security DWA,” as
opposed to “Commercial DWA,” means the use of the DWA for applications in the
fulfillment of the national security mission of the United States. Such
applications include, but are not limited to, flash x-ray radiography, compact
neutron sources, and other applications where compact accelerators are
strategically used for the fulfillment of the national security mission.

	3.	 	EXHIBIT A (LICENSED PATENTS)

Exhibit A is deleted in its entirety and replaced with the following:

Intentionally Left Blank

2

 

EXHIBIT A — LICENSED PATENTS

CATEGORY 1 PATENTS

UNITED STATES PATENTS:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Invention	 	 	 	 	 	 	 	 	 	 
	Disclosure	 	Patent	 	 	 	 	 	Filing	 	Issue
	Number	 	Number	 	Title	 	Inventors	 	Date	 	Date
	IL-9938

	 	 	6,331,194	 	 	Process for Manufacturing
Hollow
Fused-Silica Insulator
Cylinder
	 	Stephen E. Sampayan,

Michael L. Krogh,

Steven C. Davis

Non-LLNL: Ben

Rosenblum
	 	07/08/97
	 	12/18/01
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	IL- 10368

	 	 	7,173,385	 	 	Compact Accelerator
	 	George J. Caporaso,

Stephen E. Sampayan,

Hugh C. Kirbie
	 	01/14/05
	 	02/06/07

UNITED STATES PATENT APPLICATIONS:

	 	 	 	 	 	 	 	 	 
	Invention	 	Patent	 	 	 	 	 	 
	Disclosure	 	Application	 	 	 	 	 	 
	Number	 	Number	 	Title	 	Inventors	 	Filing Date
	IL-11372

	 	11/586,377
	 	Single Pulse Traveling Wave Accelerator
	 	George J. Caporaso,

Scott D. Nelson,

Brian R. Poole
	 	10/24/06
	 
	 	 	 	 	 	 	 	 
	IL-11425

	 	11/450,429
	 	Bipolar Pulse Forming Line
	 	Mark A. Rhodes
	 	06/09/06
	 
	 	 	 	 	 	 	 	 
	IL-11482

	 	11/586,468
	 	Method of Controlling the Spatial Distribution of
Large Electric Fields at Conductor Insulator
Junctions
	 	James S. Sullivan,

George Caporaso,

Stephen E. Sampayan,

David M. Sanders
	 	10/24/06
	 
	 	 	 	 	 	 	 	 
	IL-11514

	 	11/599,797
	 	Castable Dielectric Composite Linear Wall Accelerator
	 	David M. Sanders,

Stephen E. Sampayan

Non-LLNL: H.M. Stoller,

Kirk Slenes
	 	11/14/06
	 
	 	 	 	 	 	 	 	 
	[ * ]

	 	[ * ]
	 	[ * ]
	 	[ * ]
	 	[ * ]

PROVISIONAL PATENT APPLICATIONS:

[ * ]

3

 

FOREIGN PATENT APPLICATIONS:

	 	 	 	 	 	 	 	 	 
	Invention	 	 	 	 	 	 	 	 
	Disclosure	 	International	 	 	 	 	 	 
	Number	 	Serial Number	 	Title	 	Inventors	 	Filing Date
	IL-10368
	 	PCT/US05/01548	 	Improved Compact Accelerator	 	George J. Caporaso,
	 	01/18/05
	 
	 	 	 	 	 	Stephen E. Sampayan,
	 	 
	 
	 	 	 	 	 	Hugh C. Kirbie
	 	 
	 
	 	 	 	 	 	 	 	 
	IL-10368
	 	05722455.2 EP	 	Improved Compact Accelerator	 	George J. Caporaso,
	 	01/18/05
	 
	 	 	 	 	 	Stephen E. Sampayan,
	 	 
	 
	 	 	 	 	 	Hugh C. Kirbie	 	 
	 
	 	 	 	 	 	 	 	 
	IL-10368
	 	2006-549689 JP	 	Improved Compact Accelerator	 	George J. Caporaso,	 	01/18/05
	 
	 	 	 	 	 	Stephen E. Sampayan,
	 	 
	 
	 	 	 	 	 	Hugh C. Kirbie	 	 
	 
	 	 	 	 	 	 	 	 
	IL-10368
	 	2550552 CA	 	Improved Compact Accelerator	 	George J. Caporaso,	 	01/18/05
	 
	 	 	 	 	 	Stephen E. Sampayan,
	 	 
	 
	 	 	 	 	 	Hugh C. Kirbie	 	 
	 
	 	 	 	 	 	 	 	 
	IL-11372
	 	PCT/US06/41548	 	Sequentially Pulsed Traveling Wave Accelerator	 	George J. Caporaso,
	 	10/24/06
	 
	 	 	 	 	 	Scott D. Nelson	 	 
	 
	 	 	 	 	 	 	 	 
	IL-11482
	 	PCT/US06/41814	 	Optically-Initiated Silicon Carbide High Voltage Switch	 	James Sullivan,
	 	10/24/06
	 
	 	 	 	 	 	George Caporaso, 
	 	 
	 
	 	 	 	 	 	Stephen E. Sampayan,
	 	 
	 
	 	 	 	 	 	David Sanders	 	 
	 
	 	 	 	 	 	 	 	 
	IL-11514
	 	PCT/US06/44297	 	Castable Dielectric Wall Accelerator	 	David M. Sanders,
	 	11/14/06
	 
	 	 	 	 	 	Stephen E. Sampayan
	 	 
	 
	 	 	 	 	 	Non-LLNL: H.M. Stoller,
	 	 
	 
	 	 	 	 	 	Kirk Slenes	 	 
	 
	 	 	 	 	 	 	 	 
	[ * ]
	 		 		 		 	
	 
	 	 	 	 	 		 	 
	 
	 	 	 	 	 		 	 
	 
	 	 	 	 	 		 	 
	 
	 	 	 	 	 		 	 
	 
	 	 	 	 	 	 	 	 
	[ * ]
	 		 		 		 	
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 		 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 		 	 

The following Records of Inventions (ROIs) are to be included as Category 1 Patents upon
filing of the associated patent application with the USPTO.

4

 

INVENTION DISCLOSURES:

[ *
]

CATEGORY 2 PATENTS
NONE CURRENTLY

CATEGORY 3 PATENTS

NONE CURRENTLY

5

 

	4.	 	EXHIBIT B (RIGHTS GRANTED AND PERFORMANCE OBLIGATIONS)

Replace:

			
	          B.I.2.2	 	LICENSEE will have an option to negotiate to expand the Field of Use to
include Isotope Generation, provided that LICENSEE submits a separate
commercialization plan within the same time required for it to maintain
exclusivity in particle therapies other than proton therapy, as specified in
Paragraph B.1.2.1.

With:

			
	           B.I.2.2	 	LICENSEE has the right of first refusal to expand the Field of Use to include
“Commercial DWA” and/or “National Security DWA,” provided that LICENSEE complies with
the terms listed in Exhibit F (TERMS FOR FOU EXPANSION).

Replace:

			
	B.4.3	 	Pursuant to B. 1.2.2, if LICENSEE submits a commercialization plan for the Field of Use of
Isotope Generation within [ * ] years after First Commercial Acceptance, the future rights
to the Field of Use of Isotope Generation would be included in this Agreement.

With:

			
	B.4.3	 	Pursuant to B. 1.2.2, if LICENSEE complies with the terms listed in Exhibit F (TERMS FOR
FIELD OF USE EXPANSION), the future rights to the expanded Field of Use would be included in
this Agreement.

Replace:

			
	B.5.1	 	LICENSEE will develop with THE REGENTS by the completion of the DWA subscale prototype
(estimated to be [ * ]), a more detailed schedule (Exhibit E “SCHEDULE”) that
provides dates for each of the following obligations. To maintain exclusivity, specific dates
must be mutually agreed to by THE REGENTS and

6

 

LICENSEE
by the later of (a) [ * ] or that date when the DWA subscale prototype
is completed (“DWA Subscale Completion”). This Agreement must be amended with the SCHEDULE
within sixty (60) days of the DWA Subscale Completion. It is expected that the SCHEDULE
will be updated at least once annually using a form provided in the SCHEDULE during the
course of the CRADA as new information is developed. Both parties signing the updated
SCHEDULE form will be considered an amendment to the SCHEDULE.

			
	     B.5.1.1	 	A [ * ] milestone that is related to the full-scale development of the DWA

			
	     B.5.1.2	 	A [ * ] milestone that is related to the full-scale development of the DWA

			
	     B.5.1.3	 	The estimated time after the successful testing of the full-scale DWA when the
first therapy system incorporating the DWA will be installed at a location to be
determined by the Parties.

			
	     B.5.1.4	 	The date when LICENSEE will submit the required Federal Drug
Administration (“FDA”) notification/application

			
	     B.5.1.5	 	The date when LICENSEE will achieve First Commercial Acceptance, estimated
to be one year after FDA approval

			
	     B.5.1.6	 	A mutually-agreed process to jointly amend the SCHEDULE

With:

B.5.1 LICENSEE will develop with LLNS by the completion of the DWA subscale prototype, a more
detailed schedule (Exhibit E “SCHEDULE”) that provides dates for each of the following
obligations. To maintain exclusivity, specific dates must be mutually agreed to by LLNS and
LICENSEE by the later of [ * ] or that date when the DWA subscale prototype is
completed (“DWA Subscale Completion”). This Agreement must be amended with the SCHEDULE within
sixty (60) days of the DWA Subscale Completion. It is expected that the SCHEDULE will be
updated at least once annually using a form provided in the SCHEDULE during the course of the
CRADA as new

7

 

information is developed. Both parties signing the updated SCHEDULE form will be considered
an amendment to the SCHEDULE.

			
	       B.5.1.1	 	A [ * ] milestone that is related to the full-scale development of the DWA

			
	       B.5.1.2	 	The estimated time after the successful testing of the full-scale DWA when the
first therapy system incorporating the DWA will be installed at a location to be
determined by the Parties

			
	       B.5.1.3	 	The date when LICENSEE will submit the required Federal Drug
Administration (“FDA”) notification/application

			
	       B.5.1.4	 	The date when LICENSEE will achieve First Commercial Acceptance, estimated to be
one year after FDA approval

			
	       B.5.1.5	 	A mutually-agreed process to jointly amend the SCHEDULE

	5.	 	EXHIBIT E (SCHEDULE)

Exhibit E is deleted in its entirety and replaced with the following:

Intentionally Left Blank

8

 

EXHIBIT E — SCHEDULE

NOTICE 

LICENSEE considers information in this Exhibit E to be Proprietary.

Pursuant to Paragraph B.5.1 of Exhibit B (RIGHTS GRANTED AND PERFORMANCE OBLIGATIONS), LICENSEE
will develop with LLNS by DWA Subscale Completion, a more detailed schedule (“SCHEDULE”) that
provides for the following, each of which shall be a Performance Obligation.

	E.l	 	Milestones

	 	 	 	 	 
	Reference	 	Milestone	 	Date
	B.5.1.1

	 	A [ * ] milestone related to DWA full-scale development
	 	[ * ]
	B.5.1.2

	 	Installation of the first therapy system incorporating
the DWA at the location to be determined by both
Parties
	 	[ * ]
	B.5.1.3

	 	Submission of required FDA notification/application
	 	[ * ]
	B.5.1.4

	 	First Commercial Acceptance
	 	[ * ]

	E.2 	 	Amendment Process (Reference B.5.1.5)
	 
	E.2.1	 	Periodic reviews of the development of both the DWA and the proton therapy system will
be conducted by Parties, who will jointly appoint the members of the reviewing body.
	 
	E.2.2	 	Parties will review and update this schedule during the course of the CRADA at least
once annually by September 30 and amend this Agreement accordingly.
	 
	E.2.3	 	 By the termination or completion of the CRADA, dates must be furnished, mutually
agreed to, and entered into this License Schedule.

Intentionally Left Blank

9

 

6. EXHIBIT F (TERMS FOR FIELD OF USE EXPANSION)

Add Exhibit F to this Agreement.

Intentionally Left Blank

10

 

EXHIBIT F — TERMS FOR FIELD OF USE EXPANSION

11

 

January 29, 2008

Genaro Mempin

Business Development Executive

Industrial Partnerships & Commercialization

Lawrence Livermore National Laboratory

PO Box 808, L-795

Livermore CA 94551-0808

Dear Genaro,

We have discussed on several occasions the expansion of the fields of use
for license LLNL Case No. TL02168-0.0. We are formally requesting an
expansion of that license to an exclusive license in all fields of use.

I understand that there may be a desire to limit the licensing of
technologies on an exclusive basis where they may have a national defense
application. We believe that limiting exclusivity for this purpose is not
necessary given the government’s retention of its march-in rights to gain
access to the technology. But we would accept a limitation on the
exclusivity with regards to applications that may be required for national
defense after some period of time.

We believe that this expansion is both necessary and desirable for several
important reasons. We are currently funding a substantial amount of basic
research on the technologies within the scope of this license. In fact, we
believe that we are the sole source of funds for this research at the
moment, following the initial investments that LLNL and UC Davis put in
prior to 2007. We anticipate that we will spend in excess of $[ * ] million
by the time this research program is concluded; in addition, we are also
spending addition money to place our personnel in your lab and conduct
other symbiotic projects in order to further the research. In light of our
substantial investment, we believe that it is not only logical, but also
equitable that we be able to exploit the inventions that arise from our
funding and collaboration. This also closely ties to how our collaboration
will be structured and pursued. Limiting the fields of use also limits our
ability to continue cooperative research and development in the lab,
because we realize that if we were carrying on such work outside of the
lab, we would have complete and full ability to all fields of use without
restriction. Therefore, limiting the fields of use creates a substantial
disincentive to continue the research within the lab.

					
	 	 	 	 	 
	www.TomoTherapy.com
	 	1240 Deming Way Madison, WI 53717-2911 608-824-2800 Fax 608-824-2996
	 	 

 

 

Perhaps most importantly, expanding the fields of use will allow for us to be a more powerful
commercial partner that will generate greater royalties for the licensor. Having access to
additional fields of use gives us a greater incentive to accelerate the pace of development for the
dielectric-wall accelerator (DWA), since we will have the assurance that we will have an
opportunity to exploit the results of that work to the fullest extent. That greater investment will
deepen our expertise in the application of the DWA, thereby putting us in the best position to seek
commercial partners most effectively.

We anticipate that expanding the license in this manner will alter our focus from being just a
medical accelerator company to being a DWA commercialization company. This is consistent with our
plans to place the DWA development in a TomoTherapy subsidiary that is funded and sponsored by
TomoTherapy and by other investors. We still believe that the development of the DWA for a medical
application should take the first priority because TomoTherapy will be a ready buyer for the DWA
for its proton therapy system. But this initial work will put TomoPro much further along in
understanding the other potential applications and would then facilitate expanding into other
markets more quickly. A company focused on the full development and exploitation of the DWA is the
best way to maximize its potential and the return on the licensed technology.

Please advise as soon as possible when we may discuss these modifications. I look forward to
moving this ahead with you.

Best regards,

TomoTherapy Incorporated

Shawn Guse

	 	 	 
	cc:

	 	Erik Stenehjem, Director of Industrial Partnerships
	 

	 	Roger Werne, Deputy Director of Industrial Partnerships

 

 

			
	
	 	Lawrence Livermore National Laboratory

Industrial Partnerships Office

February 1, 2008

08508.02AA

Shawn Guse

Vice President and General Counsel

TomoTherapy Incorporated

1240 Deming Way

Madison, WI 53717-2911
 

Dear Shawn,

Thank you for your January 29, 2008 letter formally requesting an expansion of the
licensed fields of use in License Agreement No. 

TL02168-0.0.

LLNL is delighted that TomoTherapy decided to continue funding the joint development of
the Dielectric Wall Accelerator (DWA) for proton therapy. When you presented the business
model at the January 18th Quarterly Review, we understood the project’s need to expand
the fields of use: (1) to attract investors, (2) to justify the significant investment in
excess of $[ * ] million required, and (3) to fully exploit all the inventions and
applications that arise from your investment. Most importantly, we share your hope that
expanding the fields of use will accelerate the pace of development of the DWA, not just
for proton therapy, but also for other applications, including those for national
security.

Along this path then, LLNL would agree to expand the fields of use subject to the
following terms.

General Licensing Restrictions

	 	1.	 	LLNL requires a business plan for commercializing inventions.
	 
	 	2.	 	Limited exclusive (field of use) licensing is allowable when a technology is
in its early stages of development and will require considerable corporate
investment in additional research and development before commercialization is
possible.
	 
	 	3.	 	Performance Obligations based on the commercialization plan are necessary to
maintain exclusivity in that specific field.

National Security Applications

There is a strong desire not to grant exclusive licenses for fields covering national
security applications. LLNL suggests that we limit the exclusivity terms for these fields
and that the license becomes non-exclusive after the expiration of such terms.

	 	 	 
	

	 	An Equal Opportunity Employer • Lawrence Livermore National Security, LLC • Operated for the US 
Department of Energy
	 

	 	P.O. Box 808, L-795 • Livermore, CA 94551-0808 • 7000 East Ave., L-795 • Livermore, CA 94550-9234
	 

	 	Telephone (925) 422-6416 • Fax (925) 423-8988
	 

	 	Email: ipac@llnl.gov • Website: https://ipo.llnl.gov

 

 

			
	Mr. Shawn Guse
	 	 
	February 1, 2008
	 	 
	Page 2 of 3	 	 

Dual-Use Components

The DWA has a lot of components that can be used outside the DWA, e.g., high gradient insulators,
photoconductive switches, castable dielectric materials, etc., and the basic technologies of these
components were developed prior to the CRADA. LLNL suggests that the field of use cover only the
use of these components inside the DWA, regardless of application. Consequently, we suggest using
the term “DWA Fields of Use.”

Proposed Implementation Terms

Exhibit B (Rights Granted and Performance Obligations) of the current License Agreement No.
TL02168-0.0 contains terms to maintain the broad “Particle Therapy” field of use and to include
“Isotope Generation” field of use in the future. I suggest the following modifications:

Redefine Field of Use as “Commercial DWA Field of Use” with the following terms:

	 	1.	 	Submission of commercialization plan for the Commercial DWA Field of Use. Such plan
can be a supplement to the original commercialization plan for proton therapy submitted
June 30, 2006.
	 
	 	2.	 	Addition of Performance Obligations consistent with the submitted plan.
	 
	 	3.	 	Modification of Exhibit A (Licensed Patents) consistent with the proposed field of
use and the reimbursement of the patent costs associated with added patents.
	 
	 	4.	 	Execution of Amendment to License Agreement TL02168-0.0.

Define the new field of “National Security DWA Field of Use” with the following terms:

	 	1.	 	Submission of commercialization plan for the National Security DWA Field of Use.
TomoTherapy has the option to submit a commercial plan for “DWA Fields of Use” to include
both the Commercial and National Security fields.
	 
	 	2.	 	Addition of Performance Obligations consistent with the submitted plan.
	 
	 	3.	 	Addition of a fourth milestone payment (License Issue Fee) of $[ * ] worth of
TomoPro stock, in Exhibit C (Fees and Royalties) to be paid “within thirty (30) days of the
date on which the parties mutually agree they have completed a working full-scale prototype
of a DWA for national security applications”. The ownership of TomoPro stock would be
evidence of LLNS’s commitment to development of the DWA.
	 
	 	4.	 	Conversion from exclusive to non-exclusive of “National Security DWA Field of Use” by
the earlier of either [ * ] or [ * ] years after First Commercial Acceptance.
	 
	 	5.	 	Modification of Exhibit A (Licensed Patents) consistent with the proposed field of use and the reimbursement of the patent costs associated with added patents.
	 
	 	6.	 	Execution of Amendment to License Agreement TL02168-0.0.

All other terms remain the same.

 

 

			
	Mr. Shawn Guse
	 	 
	February 1, 2008
	 	 
	Page 3 of 3	 	 

Conclusion

As you can see, we have given a lot of thought to your request since you first brought it up last
year following the DTRA Call for Proposals. We understand the urgency facing you in attracting
more investors and customers, and you understand the urgency facing us in keeping the DWA team
together to continue the development of this life-saving technology.

I’d like for us to meet as soon as you are able to discuss this with your management.

Sincerely,

Genaro Mempin

Business Development Executive

Industrial Partnerships Office

	 	 	 
	cc:

	 	Erik Stenehjem, Director of Industrial Partnerships
	 

	 	Roger Werne, Deputy Director of Industrial Partnerships
	 

	 	Rupert Xu, Manager of Technology Commercialization, Industrial Partnerships

 

 

LLNS and LICENSEE execute this Amendment, in duplicate originals, by their respective
officers who are duly authorized on the day and year that is written.

	 	 	 	        	 	 	 
	TOMOTHERAPHY INCORPORATED	 	LAWRENCE LIVERMORE
	 

	 	 	 	NATIONAL SECURITY, LLC
	 
	 	 	 	 	 	 
	 

	 	 	 	LAWRENCE LIVERMORE
	 

	 	 	 	NATIONAL
LABORATORY
	 
	 	 	 	 	 	 
	By:

	 	/s/ Shawn D Guse
	 	By:	 	/s/ Erik J. Stenehjem
	 

	 	 
	 	 	 	 
	 

	 	Signature
	 	 	 	Signature 
	Name:

	 	Shawn D Guse
	 	Name:
	 	Erik J. Stenehjem
	 

	 	 
	 	 	 	 
	Title

	 	VP, Secretary and General Counsel
	 	Title:
	 	Director, Industrial Partnerships
	 

	 	 	 	 	 	 
	 
	Date signed:
April 10, 2008	 	Date signed:
April 20, 2008

12

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