Document:

EX-10.9

      

Exhibit 10.9 to the Registration Statement

Agreement No. 07-M0001

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
ASTERISKS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED.

EXCLUSIVE LICENSE AGREEMENT

     This Agreement is made effective the 15th day of October, 2007, by and between
Marshfield Clinic (hereinafter called "MARSHFIELD CLINIC”), a nonstock, nonprofit
Wisconsin corporation, and Osmetech Molecular Diagnostics (hereinafter called “Licensee”), a
corporation organized and existing under the laws of Delaware;

     WHEREAS, MARSHFIELD CLINIC owns certain intellectual property rights to the inventions
described in the “Licensed Patents” defined below, and MARSHFIELD CLINIC is willing to grant a
license to Licensee under any one or all of the Licensed Patents and Licensee desires a license
under all of them;

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth below, the
parties covenant and agree as follows:

     Section 1. Definitions.

     For the purpose of this Agreement, the Appendix A definitions shall apply.

     Section 2. Grant.

          A. License and Option.

               (i) MARSHFIELD CLINIC hereby grants to Licensee under the Licensed Patents an exclusive
license to make, use and sell Products in the Licensed Field and Licensed Territory.

               (ii) MARSHFIELD CLINIC grants to Licensee an exclusive option to license any warfarin
molecular markers identified by inventors of MARSHFIELD CLINIC and solely owned by MARSHFIELD
CLINIC that are identified before January 1, 2011. MARSHFIELD CLINIC also grants a non-exclusive
option to non-exclusively license warfarin molecular markers jointly owned by MARSHFIELD CLINIC,
provided MARSHFIELD CLINIC is not restricted from doing so by agreement with joint owner. Such
offer is conditional on Licensee’s satisfactory progress towards market launch of Licensed
Products, including receiving FDA approval (Appendix E), as determined by MARSHFIELD CLINIC.
MARSHFIELD CLINIC shall notify Licensee in writing of any such markers in a timely manner, after
such markers are disclosed by the inventors to MARSHFIELD CLINIC. Upon receipt of notification,
Licensee shall have thirty (30) days to provide written notice to MARSHFIELD CLINIC that Licensee
desires to exercise such option. Upon MARSHFIELD CLINIC’s receipt of such notice, MARSHFIELD
CLINIC and Licensee shall enter into good faith negotiations regarding the terms of a license agreement and shall have ninety (90) days
from the date of notice to negotiate such a license. If MARSHFIELD CLINIC and Licensee fail to
enter a license within such time period, the option granted shall terminate, unless extended by

 

 

a written agreement signed by both parties, but only with respect to the specific warfarin molecular
marker disclosed.

               (iii) In consideration of establishing a long-term collaboration, Licensee agrees to place an
Osmetech eSensor XT-8 instrument at MARSHFIELD CLINIC and provide necessary training on or before
March 31, 2008. The Licensee retains all rights to the equipment and may terminate the arrangement
after a six (6) month advance notice.

          B. Sublicenses.

               (i) Licensee may grant written, nonexclusive sublicenses to third parties. Any agreement
granting a sublicense shall state that the sublicense is subject to the termination of this
Agreement. Licensee shall have the same responsibility for the activities of any sublicensee as if
the activities were directly those of Licensee. Licensee shall provide MARSHFIELD CLINIC with the
name, contact information and address of each sublicensee, as well as information regarding the
number of full-time employees of any such sublicensee to allow MARSHFIELD CLINIC to determine
whether it can maintain its small entity filing status for patent prosecution and maintenance
purposes.

               (ii) With respect to sublicenses granted by Licensee under this Section 2B, Licensee shall pay
to MARSHFIELD CLINIC an amount equal to what Licensee would have been required to pay to MARSHFIELD
CLINIC had Licensee sold the amount of Products sold by such sublicensee. In addition, Licensee
shall pay to MARSHFIELD CLINIC * (*%) of all upfronts, milestone
payments, penalties, or other payments in consideration of the sublicense, exclusive of royalties
owed. Licensee shall not receive from its sublicensees anything of value in lieu of cash payments
in consideration for any sublicense granted under this Agreement without the express prior written
consent of MARSHFIELD CLINIC.

          C. Reservation of Rights.

     MARSHFIELD CLINIC hereby reserves the right to grant non-profit research institutions and
governmental agencies non-exclusive licenses to practice and use the inventions of the Licensed
Patents for Non-Commercial Research Purposes. Marshfield Clinic and the inventors of the Licensed
Patents shall have the right to publish any information included in the Licensed Patents.

          D. License to MARSHFIELD CLINIC.

               (i) Licensee hereby grants, and shall require its sublicensee(s) to grant, to MARSHFIELD
CLINIC a nonexclusive, royalty-free, irrevocable, paid-up license, with the right to grant
sublicenses to non-profit research institutions and governmental agencies, to practice and use of
the Licensed Patents and “Improvements” for Non-Commercial Research Purposes. “Improvements” shall
mean any patented modification of an invention described in the Licensed Patents that (1) would be
infringed by the practice of an invention claimed in the
Licensed Patents; or (2) if not for the license granted under this Agreement, would infringe
one or more claims of the Licensed Patents. Licensee shall provide MARSHFIELD CLINIC with a

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written, enabling disclosure of each such invention, unambiguously identifying it as an invention
governed by this paragraph, within six (6) months of the issuance of a patent thereon.

               (ii) In the event that Licensee and its sublicensee(s) discontinue the use or
commercialization of the Licensed Patents or any Improvements provided for under this Agreement,
Licensee shall grant, and shall require its sublicensee(s) to grant, to MARSHFIELD CLINIC an option
to obtain a nonexclusive, royalty bearing license, with the right to grant sublicenses, to practice
and use said Improvements for commercial purposes. Licensee shall provide to MARSHFIELD CLINIC
written notice that Licensee and its sublicensee(s) intend to discontinue such use or
commercialization immediately upon making such a decision. Marshfield Clinic’s option with respect
to each Improvement shall expire sixty (60) days after Marshfield Clinic’s receipt of said written
notice from Licensee. The failure of MARSHFIELD CLINIC to timely exercise its option under this
paragraph shall be deemed a waiver of Marshfield Clinic’s option, but only with respect to the
Improvement so disclosed.

     Section 3. Development.

          A. Licensee shall diligently develop, manufacture, market and sell Products in each Licensed
Field and Licensed Territory throughout the term of this Agreement. Such activities shall
include, without limitation, those activities listed in the Development Plan attached hereto as
Appendix E. Licensee agrees that said Development Plan is reasonable and that it shall take all
reasonable steps to meet the development program as set forth therein.

          B. Beginning in calendar year 2008 and until the Date of First Commercial Sale, Licensee
shall provide MARSHFIELD CLINIC with a written Development Report summarizing Licensee’s
development activities since the last Development Report and any necessary adjustments to the
Development Plan. Licensee agrees to provide each Development Report to MARSHFIELD CLINIC on or
before thirty (30) days from the end of each semi-annual period ending June 30 and December 31 for
which a report is due, and shall set forth in each Development Report sufficient detail to enable
MARSHFIELD CLINIC to ascertain Licensee’s progress toward the requirements of the Development
Plan. MARSHFIELD CLINIC reserves the right to audit Licensee’s records relating to the
development activities required hereunder. Such record keeping and audit procedures shall be
subject to the procedures and restrictions set forth in Section 6 for auditing the financial
records of Licensee.

          C. Licensee agrees to and warrants that it has, or will obtain, the expertise necessary to
independently evaluate the inventions of the Licensed Patents and to develop Products for sale in
the commercial market and that it so intends to develop Products for the commercial market.
Licensee acknowledges that any failure by Licensee to reasonably implement the Development Plan,
or to make timely submission to MARSHFIELD CLINIC of any Development Report, or the providing of
any false information to MARSHFIELD CLINIC regarding Licensee’s development activities hereunder,
shall be a material breach of this Agreement.

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     Section 4. Consideration.

          A. License Fee.

     Licensee
agrees to pay to MARSHFIELD CLINIC a one-time upfront license fee of $* US
within thirty (30) days of Licensee’s execution of this Agreement

          B. Royalty.

     In addition to the Section 4A license fee, Licensee agrees to pay to MARSHFIELD CLINIC as
“earned royalties” a royalty calculated as a percentage of the Selling Price of Products in
accordance with the terms and conditions of this Agreement. The royalty is deemed earned as of the
earlier of the date the Product is actually sold, leased or otherwise transferred for
consideration, the date an invoice is sent by Licensee, or the date a Product is transferred to a
third party for any promotional reasons. The royalty shall remain fixed while this Agreement is in
effect at a rate of *(*%) of the Selling Price of Products.

          C. Minimum Royalty.

     Licensee
further agrees to pay to MARSHFIELD CLINIC a minimum royalty of $* per calendar
year or part thereof during which this Agreement is in effect starting in calendar year 2009
against which any earned royalty paid for the same calendar year will be credited provided that
MARSHFIELD CLINIC proves clinical utility for its SNP rs2108622 in the gene CYP4F2 through clinical
validation studies. Such validation studies are being conducted at MARSHFIELD CLINIC now in
partnership with external collaborators. Positive results of such studies will be considered as
proof of clinical validation. Unless and until Marshfield Clinic secures such validation, no
obligation will exist for Licensee to pay such minimum royalty. The minimum royalty for a given
year shall be due at the time payments are due for the calendar quarter ending on December 31. It
is understood that the minimum royalties will apply on a calendar year basis, and that sales of
Products requiring the payment of earned royalties made during a prior or subsequent calendar year
shall have no effect on the annual minimum royalty due MARSHFIELD CLINIC for any other given
calendar year.

          D. Patent Fees and Costs.

     MARSHFIELD CLINIC has authorized WiSys Technology Foundation to file, prosecute and maintain
patent coverage of the Licensed Patent or patent application on its behalf. Therefore, WiSys
Technology Foundation shall be the contact agency for Licensee regarding all matters described in
this Section 4D.

      
         (i) Licensee also agrees to
reimburse MARSHFIELD CLINIC for * (*%) of all
reasonable costs incurred by MARSHFIELD CLINIC in filing, prosecuting and maintaining the Licensed
Patents in US, EU and Japan. All such costs for each Licensed Patent shall come due only after the
applicable patent office has issued a notification of allowance (or its equivalent), and shall be
paid by Licensee within thirty (30) days of receipt of an invoice from MARSHFIELD CLINIC, or WiSys
Technology Foundation, acting on behalf of MARSHFIELD CLINIC.

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               (ii) MARSHFIELD CLINIC is not obligated to make or maintain any foreign filing of the Licensed
Patents other than agreeing that it shall make and maintain US, EU (7 selected countries in Europe)
and Japan filings of the Licensed Patents. If Licensee desires MARSHFIELD CLINIC to make or
maintain other foreign filings, Licensee must notify MARSHFIELD CLINIC in writing three (3) months
prior to the expiration of the deadline for making such foreign filings, indicating those countries
in which Licensee desires MARSHFIELD CLINIC to pursue foreign patent protection. Licensee agrees
to pay all reasonable patenting costs for additional countries within thirty (30) days of receiving
an invoice from MARSHFIELD CLINIC. Any country for which MARSHFIELD CLINIC files for such patent
protection at Licensee’s request shall be included in the Licensed Territory under this Agreement.
MARSHFIELD CLINIC reserves the right to file a patent application, at its own expense, in any
countries not requested by Licensee pursuant to this Section 4D. Licensee acknowledges that if the
United States Government (through any of its agencies or otherwise) has funded research, during the
course of or under which any of the inventions of the Licensed Patents were conceived or made, the
United States Government is entitled, as a right, under the provisions of 35 U.S.C. § 200-212 and
applicable regulations of Chapter 37 of the Code of Federal Regulations, to make and maintain
foreign filings in those countries not selected by Licensee and/or MARSHFIELD CLINIC.

               (iii) MARSHFIELD CLINIC will prosecute all national applications it files at Licensee’s
request pursuant to this Section 4D until MARSHFIELD CLINIC determines that continued prosecution
is unlikely to result in the issuance of a patent in that country. If MARSHFIELD CLINIC decides to
abandon prosecution or maintenance of any patent or patent application under the Licensed Patents
in a country in which Licensee has requested MARSHFIELD CLINIC to make and maintain such filing,
MARSHFIELD CLINIC shall provide Licensee notice of Marshfield Clinic’s intent to abandon such
application. In such event, Licensee shall have the right to continue prosecution of said
application, at its own expense, on behalf of MARSHFIELD CLINIC and Licensee, to the extent allowed
under applicable law.

          E. Accounting; Payments.

               (i) Amounts owing to MARSHFIELD CLINIC under Sections 2B and 4B shall be paid on a quarterly
basis, with such amounts due and received by MARSHFIELD CLINIC on or before the thirtieth
(30th) day following the end of the calendar quarter ending on March 31, rune 30,
September 30 or December 31 in which such amounts were earned. The balance of any amounts which
remain unpaid more than thirty (30) days after they are due to MARSHFIELD CLINIC shall accrue
interest until paid at the rate*. However, in no event shall this interest provision be construed as a
grant of permission for any payment delays.

               (ii) Except as otherwise directed, all amounts owing to MARSHFIELD CLINIC under this Agreement
shall be paid in U.S. dollars to MARSHFIELD CLINIC at the address provided in Section 16(a). All
royalties owing with respect to Selling Prices stated in currencies other than U.S. dollars shall
be converted at the rate shown in the Federal Reserve Noon Valuation — Value of Foreign Currencies
on the day preceding the payment. MARSHFIELD CLINIC is exempt from paying income taxes under U.S.
law. Therefore, all payments due under this Agreement shall be made without deduction for taxes,

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assessments, or other charges of any kind which may be imposed on MARSHFIELD CLINIC by any
government outside of the United States or any political subdivision of such government with
respect to any amounts payable to MARSHFIELD CLINIC pursuant to this Agreement. All such taxes,
assessments, or other charges shall be assumed by Licensee.

               (iii) A full accounting showing how any amounts owing to MARSHFIELD CLINIC under Sections 2B
and 4B have been calculated shall be submitted to MARSHFIELD CLINIC on the date of each such
payment. Such accounting shall be on a per-country and product line, model or trade name basis and
shall be summarized on the form shown in Appendix C of this Agreement. In the event no payment is
owed to MARSHFIELD CLINIC, a statement setting forth that fact shall be supplied to MARSHFIELD
CLINIC.

     Section 5. Certain Warranties.

          A. MARSHFIELD CLINIC warrants that except as otherwise provided under Section 14 of this
Agreement with respect to U.S. Government interests, it is the Owner of the Licensed Patents or
otherwise has the right to grant the licenses granted to Licensee in this Agreement. However,
nothing in this Agreement shall be construed as:

               (i) a warranty or representation by MARSHFIELD CLINIC as to the validity or scope of any of
the Licensed Patents;

               (ii) a warranty or representation that anything made, used, sold or otherwise disposed of
under the license granted in this Agreement will or will not infringe patents of third parties; or

               (iii) an obligation to furnish any know-how not provided in the Licensed Patents or any
services other than those specified in this Agreement.

          B. MARSHFIELD CLINIC MAKES NO REPRESENTATIONS, EXTENDS NO WARRANTIES OF ANY KIND, EITHER
EXPRESS OR IMPLIED, AND ASSUMES NO RESPONSIBILITIES WHATSOEVER WITH RESPECT TO THE USE, SALE, OR
OTHER DISPOSITION BY LICENSEE, ITS SUBLICENSEE(S), OR THEIR VENDEES OR OTHER TRANSFEREES, OF
PRODUCTS INCORPORATING OR MADE BY USE OF INVENTIONS LICENSED UNDER THIS AGREEMENT.

          C. Licensee represents and warrants that Products produced under the license granted herein
shall be manufactured substantially in the United States as required by 35 U.S.C § 204 and
applicable regulations of Chapter 37 of the Code of Federal Regulations.

     Section 6. Recordkeeping.

          A. Licensee and its sublicensee(s) shall keep books and records sufficient to verify the
accuracy and completeness of Licensee’s and its sublicensee(s)’s accounting referred to above,
including, without limitation, inventory, purchase and invoice records relating to the Products or
their manufacture. In addition, Licensee shall maintain documentation evidencing that Licensee is
in fact pursuing the development of Products as required herein. Such documentation may include,
but is not limited to, invoices for studies advancing the

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development of Products, laboratory notebooks, internal job cost records, and filings made to
the Internal Revenue Department to obtain tax credit, if available, for research and development
of Products. Such books and records shall be preserved for a period not less than six (6) years
after they are created during and after the term of this Agreement.

          B. Licensee and its sublicensee(s) shall take all steps necessary so that MARSHFIELD CLINIC
may within thirty (30) days of its request review and copy all the books and records at a single
U.S. location to allow MARSHFIELD CLINIC to verify the accuracy of Licensee’s royalty reports and
Development Reports and the royalty reports of its sublicensee(s). Such review may be performed
by any employee of MARSHFIELD CLINIC as well as by any attorney or registered CPA designated by
MARSHFIELD CLINIC, upon reasonable notice and during regular business hours.

          C. If a royalty payment deficiency is determined, Licensee and its sublicensee(s), as
applicable, shall pay the royalty deficiency outstanding within thirty (30) days of receiving
written notice thereof, plus interest on outstanding amounts as described in Section 4E(i).

          D. If a royalty payment deficiency for a calendar year exceeds the lesser of
*(*%) of the royalties paid for that year or $*, then Licensee or its sublicensee(s) shall be
responsible for paying Marshfield Clinic’s out-of-pocket expenses incurred with respect to such
review.

     Section 7. Term and Termination.

          A. The term of this license shall begin on the effective date of this Agreement and continue
until this Agreement is terminated as provided herein or until the earlier of the date that no
Licensed Patent remains an enforceable patent or the payment of earned royalties under Sections 2B
and 4B, once begun, ceases for more than eight (8) calendar quarters.

          B. Licensee may terminate this Agreement at any time by giving at least ninety (90) days
written and unambiguous notice of such termination to MARSHFIELD CLINIC. Such a notice shall be
accompanied by a statement of the reasons for termination.

          C. MARSHFIELD CLINIC shall have the right to terminate this Agreement if Licensee fails to
offer for sale to the retail market a diagnostic Product (APPENDIX A) by January 1, 2011 by giving
Licensee at least ninety (90) days written notice.

          D. If Licensee at any time defaults in the timely payment of any monies due to MARSHFIELD
CLINIC or the timely submission to MARSHFIELD CLINIC of any Development Report, fails to actively
pursue the development plan, or commits any breach of any other covenant herein contained, and
Licensee fails to remedy any such breach or default within ninety (90) days after written notice
thereof by MARSHFIELD CLINIC, or if Licensee commits any act of bankruptcy, becomes insolvent, is
unable to pay its debts as they become due, files a petition under any bankruptcy or insolvency
act, or has any such petition filed against it which is not dismissed within sixty (60) days, or
if Licensee or its sublicensee(s)

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offer any component of the Licensed Patents to their creditors, MARSHFIELD CLINIC may, at its
option, terminate this Agreement by giving notice of termination to Licensee.

          E. Upon the termination of this Agreement, Licensee and its sublicensee(s) shall remain
obligated to provide an accounting for and to pay royalties earned up to the date of the
termination, and any minimum royalties shall be prorated as of the date of termination by the
number of days elapsed in the applicable calendar year.

          F. Waiver by either party of a single breach or default, or a succession of breaches or
defaults, shall not deprive such party of any right to terminate this Agreement in the event of
any subsequent breach or default.

     Section 8. Assignability.

     This Agreement may not be transferred or assigned by Licensee without the prior written
consent of MARSHFIELD CLINIC, except upon the sale of substantially all of the Licensee’s assets,
in which case no consent for such assignment is required.

     Section 9. Contest of Validity.

     In the event Licensee or its sublicensee(s) contest the validity or enforceability of any
Licensed Patent, Licensee and its sublicensee(s) shall continue to pay royalties with, respect to
that patent as if such contest were not underway until the patent is adjudicated invalid or
unenforceable by a court of last resort.

     Section 10. Enforcement.

     MARSHFIELD CLINIC intends to protect the Licensed Patents against infringers or otherwise act
to eliminate infringement when, in Marshfield Clinic’s sole judgment, such action may be necessary,
proper, justified and makes reasonable business sense considering all factors. In the event that
Licensee or its sublicensee(s) believe there is infringement of any Licensed Patent under this
Agreement which is to its substantial detriment, Licensee shall provide MARSHFIELD CLINIC with
notification and reasonable evidence of such infringement.

      Section 11. Patent Marking.

     Licensee and its sublicensee(s) shall mark all Products or Product packaging with the
appropriate patent number reference in compliance with the requirements of U.S. law, 35 U.S.C. §
287.

     Section 12. Product Liability; Conduct of Business.

               A. Licensee shall, at all times during the term of this Agreement and thereafter, indemnify,
defend and hold MARSHFIELD CLINIC and the inventors of the Licensed Patents harmless against all
claims and expenses, including legal expenses and reasonable attorneys fees, arising out of the
death of or injury to any person or persons or out of any damage to property and against any other
claim, proceeding, demand, expense and liability of any kind whatsoever resulting from the
production, manufacture, sale, use, lease,

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consumption or advertisement of Products arising from any right or obligation of Licensee or
its sublicensee(s) hereunder. MARSHFIELD CLINIC at all times reserves the right to select and
retain counsel of its own to defend Marshfield Clinic’s interests.

               B. Licensee warrants that it now maintains and will continue to maintain liability insurance
coverage appropriate to the risk involved in marketing the products subject to this Agreement and
that such insurance coverage lists MARSHFIELD CLINIC and the inventors of the Licensed Patents as
additional insureds. Within ninety (90) days after the execution of this Agreement and thereafter
annually between January 1 and January 31 of each year, Licensee will present evidence to
MARSHFIELD CLINIC that the coverage is being maintained with MARSHFIELD CLINIC and its inventors
listed as additional insureds. In addition, Licensee shall provide MARSHFIELD CLINIC with at
least thirty (30) days prior written notice of any change in or cancellation of the insurance
coverage.

     Section 13. Use of Names.

     Neither Licensee nor its sublicensee(s) shall use Marshfield Clinic’s name, the name of any
inventor of inventions governed by this Agreement, in sales promotion, advertising, or any other
form of publicity without the prior written approval of the entity or person whose name is being
used; except that one or more press releases evidencing the existence of this Agreement may be
undertaken by the parties, said releases to be jointly-approved between them prior to release.

     Section 14. United States Government Interests.

     It is understood that if the United States Government (through any of its agencies or
otherwise) has funded research, during the course of or under which any of the inventions of the
Licensed Patents were conceived or made, the United States Government is entitled, as a right,
under the provisions of 35 U.S.C. §§ 200-212 and applicable regulations of Chapter 37 of the Code
of Federal Regulations, to a nonexclusive, nontransferable, irrevocable, paid-up license to
practice or have practiced the invention of such Licensed Patents for governmental purposes. Any
license granted under this Agreement to Licensee or any of its sublicensee shall be subject to such
right.

     Section 15. Miscellaneous.

     This Agreement shall be governed by and construed in all respects in accordance with the laws
of the State of Wisconsin. If any provisions of this Agreement are or shall come into conflict
with the laws or regulations of any jurisdiction or any governmental entity having jurisdiction
over the parties or this Agreement, those provisions shall be deemed automatically deleted, if such
deletion is allowed by relevant law, and the remaining terms and conditions of this Agreement shall
remain in full force and effect. If such a deletion is not so allowed or if such a deletion leaves
terms thereby made clearly illogical or inappropriate in effect, the parties agree to substitute
new terms as similar in effect to the present terms of this Agreement as may be allowed under the
applicable laws and regulations. The parties hereto are independent contractors and not joint
venturers or partners.

     Section 16. Notices.

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

	 	(a)	 	WiSys Technology Foundation

Attn: Contracts Manager

614 Walnut Street

Madison, Wisconsin 53726
	 
	 	(b)	 	Licensee Osmetech Molecular

Diagnostics Inc Attn: Legal Department

757 S. Raymond Ave

Pasadena, CA 91105

     Section 17. Integration.

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

     Section 18. Confidentiality.

     The parties hereto agree to keep any information identified as confidential by the disclosing
party confidential using methods at least as stringent as each party uses to protect its own
confidential information. “Confidential Information” shall include Licensee’s development plan and
development reports, the Licensed Patents and all information concerning them and any other
information marked confidential or accompanied by correspondence indicating such information is
exchanged in confidence between the parties. Except as may be authorized in advance in writing by
MARSHFIELD CLINIC, Licensee shall only grant access to Marshfield Clinic’s Confidential Information
to its sublicensee(s) and those employees of Licensee and its sublicensee(s) involved in research
relating to the Licensed Patents. Licensee shall require its sublicensee(s) and all such employees
to be bound by terms of confidentiality no less restrictive than those set forth in this Section
18. Licensee and its sublicensee(s) shall not use any Confidential Information to Marshfield
Clinic’s detriment, including, but not limited to, claiming priority to the Licensed Patents in any
patent prosecution. The confidentiality and use obligations set forth above apply to all or any
part of the Confidential Information disclosed hereunder except to the extent that:

               (i) MARSHFIELD CLINIC, Licensee or its sublicensee(s) can show by written record that it
possessed the information prior to its receipt from the other party;

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               (ii) the information was already available to the public or became so through no fault of
MARSHFIELD CLINIC, Licensee or its sublicensee(s);

               (iii) the information is subsequently disclosed to MARSHFIELD CLINIC, Licensee or its
sublicensee(s) by a third party that has the right to disclose it free of any obligations of
confidentiality; or

               (iv) five (5) years have elapsed from the expiration of this Agreement.

     Section 19. Authority.

     The persons signing on behalf of MARSHFIELD CLINIC and Licensee hereby warrant and represent
that they have authority to execute this Agreement on behalf of the party for whom they have
signed.

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement on the dates
indicated below.

	 	 	 	 	 
	MARSHFIELD CLINIC

 	 	 
	By:  	/s/ Robert Carlson	 	Date: Oct. 29, 2007 
	 	Name and Office: Director Applied Sciences 	 	 
	 	 	 	 
	 
	OSMETECH MOLECULAR DIAGNOSTICS

 	 	 
	By:  	/s/ James White 	 	Date: Oct. 23, 2007 
	 	Name and Office: James White CEO 	 	 
	 	 	 	 
	 	 	 
	 	 	 	 
	Reviewed by Marshfield Clinic’s Attorney:

 	 	 
	/s/ 	 	Oct. 22, 2007 

(Marshfield Clinic’s attorney shall not be deemed a signatory to this Agreement.)

Marshfield Clinic Ref: Caldwell — M07015US

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APPENDIX A

     A. “Licensed Patents” shall refer to and mean those patents and patent applications listed on
Appendix B attached hereto in countries in the Licensed Territory and any subsequent patent
application owned by MARSHFIELD CLINIC in a country in the Licensed Territory but only to the
extent it claims priority to an invention claimed in a patent application listed on Appendix B.
This includes but is not limited to continuation applications, continuation-in-part applications to
the extent they relate back to a parent Licensed Patent, divisional applications, reissue
applications, utility model applications or registrations,

     B. “Products” shall refer to and mean any and all products that employ or are in any way
produced by the practice of an invention claimed in the Licensed Patents or that would otherwise
constitute infringement of any claims of the Licensed Patents.

     C. “Selling Price” shall mean, in the case of Products that are sold or leased, the invoice
price to the end user of Products (regardless of uncollectible accounts) less any shipping costs,
allowances because of returned Products, or sales taxes. The “Selling Price” for a Product that is
transferred to a third party for promotional purposes without charge or at a discount shall be the
average invoice price to the end user of that type of Product during the applicable calendar
quarter.

     D. “Development Report” shall mean a written account of Licensee’s progress under the
development plan having at least the information specified on Appendix D to this Agreement, and
shall be sent to the address specified on Appendix D.

     E. “Licensed Field” shall be limited to the field of human diagnostic and research
applications, expressly excluding any pharmaceutical drug development and therapeutic uses.

     F. “Licensed Territory” shall be Worldwide.

     G. “Non-Commercial Research Purposes” shall mean the use of the inventions of the Licensed
Patents and/or Improvements for academic research purposes or other not-for-profit or scholarly
purposes not involving the use of the inventions of the Licensed Patents or Improvements to perform
services for a fee or for the production or manufacture of products for sale to third parties.

 

APPENDIX B

LICENSED PATENTS

	 	 	 	 	 	 	 	 	 
	REFERENCE	 	 	 	PATENT	 	ISSUE	 	APPLICATION
	NUMBER	 	COUNTRY	 	NUMBER	 	DATE	 	SERIAL NUMBER
	 	 	 	 	 	 	 	 	 

Technology Title (Inventors...)

* “Test of rs2108622 in the gene CYP4F2 for predicting a patient’s starting does of
warfarin and subsequent dose adjustments”

This invention provides a method for improving warfarin dosing and dose adjustment models by adding
data from a genetic test about single nucleotide polymorphism rs2108622 in the gene CYP4F2
(Cytochrome P450 4F2.

	 	 	 	 	 	 	 	 	 
	 *
	 	 UNITED STATES	 	 	 	 	 	 

A provisional US application will be filed by October 22, 2007. Licensee has instructed WiSys to
file in US, Europe and Japan. US, Europe and Japan applications are included in the “Licensed
Patents”

 

APPENDIX C

MARSHFIELD CLINIC ROYALTY REPORT

	 	 	 
	Licensee:     
                  
                      
                                    
	 	Agreement No.     
                  
                      
                                    
	Inventor:     
                  
                      
                                    

	 	P#:                 
                   
         
                      
                                 
	Period Covered: From     
                /    
                /    
                
	 	Through:     
                /    
                /    
                
	Prepared By:     
                  
                     
                    
                 
	 	Date:     
                  
                     
                    
                 
	Approved By:     
                  
                     
                    
                 

	 	Date:     
                  
                     
                    
                 

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

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

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

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

The following royalty forecast is non-binding and for Marshfield Clinic’s internal planning
purposes only:

Royalty Forecast Under This Agreement: Next Quarter:     
                
Q2:     
                
Q3:     
                 Q4:     
                

 

 

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

     Also note any unusual occurrences that affected royalty amounts during this period.

To assist Marshfield Clinic’s forecasting, please comment on any significant expected trends in
sales volume.

 

APPENDIX D

DEVELOPMENT REPORT

	A.	 	Date development plan initiated and time period covered by this report.
	 
	B.	 	Development Report (4-8 paragraphs).

	 	1.	 	Activities completed since last report including the object and parameters of
the development, when initiated, when completed and the results.
	 
	 	2.	 	Activities currently under investigation, i.e., ongoing activities including
object and parameters of such activities, when initiated, and projected date of
completion.

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

	 	1.	 	Activities to be undertaken before next report including, but not limited to,
the type and object of any studies conducted and their projected starting and
completion dates.
	 
	 	2.	 	Estimated total development time remaining before a product will be commercialized.

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

	 	1.	 	Reasons for change.
	 
	 	2.	 	Variables that may cause additional changes.

	E.	 	Items to be provided if applicable:

	 	1.	 	Information relating to Product that has become publicly available, e.g.,
published articles, competing products, patents, etc.
	 
	 	2.	 	Development work being performed by third parties other than Licensee to
include name of third party, reasons for use of third party, planned future uses of
third parties including reasons why and type of work.
	 
	 	3.	 	Update of competitive information trends in industry, government compliance (if
applicable) and market plan.

PLEASE SEND DEVELOPMENT REPORTS TO:

WiSys Technology Foundation

Attn.: Contract Coordinator

614 Walnut Street

P.O. Box 7365

Madison, WI 53707-7365

 

APPENDIX E

DEVELOPMENT PLAN

	 	 	 	 	 	 	 	 	 
	4F2 Development Plan Activities	 	Timing	 	Status
	 
	 	 	 	 	 	 	 	 
	*
	 	 	 	 	 	 	 	 
	*
	 	 	*	 	 	*
	*
	 	 	*	 	 	*
	*
	 	 	*	 	 	*
	*
	 	 	*	 	 	*
	*
	 	 	*	 	 	*
	*
	 	 	*	 	 	*
	*
	 	 	*	 	 	*
	*
	 	 	 	 	 	 	 	 
	*
	 	 	*	 	 	*
	*
	 	 	*	 	 	 	 	 
	*
	 	 	 	 	 	 	 	 
	*
	 	 	*	 	 	 	 	 
	*
	 	 	*	 	 	 	 	 
	*
	 	 	 	 	 	 	 	 
	*
	 	 	*	 	 	 	 	 
	*
	 	 	*	 	 	 	 	 
	*
	 	 	 	 	 	 	 	 
	*
	 	 	*	 	 	 	 	 
	*
	 	 	*	 	 	 	 	 
	*
	 	*	 	 	 	 
	*
	 	 	 	 	 	 	 	 
	*
	 	 	*	 	 	 	 	 
	*
	 	 	*	 	 	 	 	 

 

			
	*	 	 
	 
	*	 	*
	 
	**	 	*EX-10.10

Exhibit 10.10 to the Registration Statement

NON-EXCLUSIVE PATENT LICENSE AGREEMENT

BETWEEN

OSMETECH

AND

THE UNIVERSITY OF WASHINGTON

UW REFERENCE: 7063-18921A

UW TECHTRANSFER, INVENTION LICENSING

NEGOTIATED BY CHRISTINE HAN, PH.D., M.P.H.

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page
	 	 	 	 	 	 	 
	 	1.	 	 	Definitions

	 	 	1	 
	 	2.	 	 	Term

	 	 	2	 
	 	3.	 	 	Grant of License

	 	 	2	 
	 	4.	 	 	Applications and Patents

	 	 	3	 
	 	5.	 	 	Commercialization

	 	 	4	 
	 	6.	 	 	Payments, Reimbursements, Reports, and Records

	 	 	5	 
	 	7.	 	 	Third Party Infringement of Licensed Patent

	 	 	6	 
	 	8.	 	 	Termination

	 	 	7	 
	 	9.	 	 	Release, Indemnification, and Insurance

	 	 	7	 
	 	10.	 	 	Warranties

	 	 	8	 
	 	11.	 	 	Damages

	 	 	9	 
	 	12.	 	 	Amendment and Waiver

	 	 	9	 
	 	13.	 	 	Assignment

	 	 	10	 
	 	14.	 	 	Applicable Law

	 	 	10	 
	 	15.	 	 	Confidentiality

	 	 	10	 
	 	16.	 	 	Consent and Approvals

	 	 	11	 
	 	17.	 	 	Construction

	 	 	11	 
	 	18.	 	 	Enforceability

	 	 	11	 
	 	19.	 	 	Entire Agreement; No Third-Party Beneficiaries

	 	 	11	 
	 	20.	 	 	Language and Currency

	 	 	12	 
	 	21.	 	 	Notices

	 	 	12	 
	 	22.	 	 	Publicity

	 	 	12	 
	 	23.	 	 	Relationship of Parties

	 	 	13	 
	 	24.	 	 	Security Interest

	 	 	13	 
	 	25.	 	 	Survival

	 	 	13	 
	 	26.	 	 	Collection Costs and Attorneys’ Fees

	 	 	13	 
	 	27.	 	 	Forum Selection

	 	 	13	 
	 	28.	 	 	Patent Marking

	 	 	13	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	 	 	 	 	 
	 	 	Signatures

	 	 	14	 

-ii-

 

CERTAIN
CONFIDENTIAL INFORMATION CONTAINED IN THIS DOCUMENT, MARKED BY
ASTERISKS, HAS BEEN OMITTED AND FILED SEPARATELY WITH THE SECURITIES
AND EXCHANGE COMMISSION PURSUANT TO RULE 406 UNDER THE SECURITIES ACT
OF 1933, AS AMENDED.

NON-EXCLUSIVE PATENT LICENSE AGREEMENT

     This Agreement (“Agreement”) is dated and effective as of the date of last signature (the
“Effective Date”), and is made by and between the University of Washington, a public institution of
higher education and an agency of the state of Washington (the “University”), and Osmetech
Molecular Diagnostics, an entity consisting solely of Clinical Micro Sensors, Inc. and Osmetech,
Inc., both Delaware Corporations (the “Company”), (individually a “Party” or collectively the
“Parties”).

Purpose

     The University owns the right to license to others certain rights to the Licensed Patents, as
that term is defined and used in this Agreement. The Company desires that the University grant it
a license to use, develop, and commercialize the inventions claimed in the Licensed Patents. The
University is willing to grant such a license on the terms set forth below.

     NOW, THEREFORE, the Parties agree that:

1. Definitions. For purposes of interpreting this Agreement, the following terms shall have the
meanings ascribed to them below in this Article 1:

	1.1.	 	“Affiliate” means (i) a Third Party that owns fifty percent (50%) or more of the voting
capital stock, or like equity security, of the Company, or (ii) a Third Party in which the
Company owns fifty percent (50%) or more of the voting capital stock, or like equity security.
	 
	1.2.	 	“Confidential Information” means any information or materials (biological, chemical, or
otherwise) of the Parties not generally known to the public, including any information
comprised by those materials and including without limitation, Licensed Technology.
	 
	1.3.	 	“Field of Use” means the fields of use described in section Al of attached Exhibit A.
	 
	1.4.	 	“Licensed Patent” means the patents and patent applications listed in section A2 of attached
Exhibit A along with any further related patent issued during the term of this Agreement by
the United States Patent and Trademark Office or any like foreign body with respect to patent
applications. The term “Licensed Patent” also includes any divisionals, continuations,
reissues, renewals, substitutions, re-examinations or extensions and foreign equivalents
thereof or substitute therefore of a Licensed Patent.
	 
	1.5.	 	“Licensed Product” means any product, good or service in the Field of Use that is used, made
by, made for, sold, transferred, offered for sale, or otherwise disposed of by the Company
during the term of this Agreement that, but for the granting of the rights set forth in this
Agreement, would infringe (including under the doctrine of equivalents) one or more Valid
Claims of a Licensed Patent in the country where such product, good or service is sold or
provided, or any product or good that is made using a process or

 

 

	 	 	machine that is covered by a Valid Claim of a Licensed Patent in the country where such
product or good is sold or manufactured.
	 
	1.6.	 	“Licensed Technology” means collectively the inventions claimed in each Licensed Patent.
	 
	1.7.	 	“Net Sales Price” means the gross amount invoiced for sales, leases, services, and other
dispositions of Licensed Products less (i) all trade, quantity, and cash discounts actually
allowed, including (ii) all credits and allowances actually granted due to rejections,
returns, billing errors, and retroactive price reductions, (iii) duties, and (iv) excise, sale
and use taxes, and equivalent taxes. In the event the Company sells, leases, or disposes of a
Licensed Product to an Affiliate, the “Net Sales Price” for that transaction for purposes of
this Agreement shall be equal to the price the Company charges non-Affiliate Third Parties for
the Licensed Product or if the Company does not offer to sell the Licensed Product to the
public, the price charged by the Company for a product of similar kind, quality, and quantity.
	 
	1.8.	 	“Payment” means a payment to be made by the Company to the University specified in section
6.1 of this Agreement and described in section A3 of attached Exhibit A.
	 
	1.9.	 	“Territory” means worldwide.
	 
	1.10.	 	“Third Party” means any individual or entity other than the University or the Company.
	 
	1.11.	 	“Valid Claim” means (a) a claim in an issued and unexpired patent included in the Licensed
Patents that: (i) has not been held unenforceable, unpatentable or invalid by a decision of a
court or other governmental agency of competent jurisdiction, and not subject to appeal, (ii)
has not been admitted to be invalid or unenforceable through reissue or disclaimer or
otherwise, (iii) has not been lost through an interference, reexamination or reissue
proceeding; or (b) a claim of a pending patent application included in the Licensed Patents.

2. Term. The term of this Agreement shall commence on the Effective Date and, unless terminated
earlier as provided below in Article 8, this Agreement shall expire on the date on which no Valid
Claim in a Licensed Patent is pending or subsisting in any country in the Territory.

3. Grant of License.

	3.1.	 	The Company’s Rights.

     3.1.1. Grant. Subject to the terms and conditions of this Agreement, the
University hereby grants to the Company, and the Company hereby accepts, a nonexclusive
license to make, have made on its behalf, use, offer to sell or sell, offer to lease or
lease, import, or otherwise offer to dispose or dispose of Licensed Products in the

-2-

 

Territory. The Parties acknowledge and agree that the license granted in this
Agreement shall be limited to the inventions in the Field of Use that are expressly claimed
in each Licensed Patent. No provision of this Agreement shall be construed to grant the
Company, by implication, estoppel or otherwise, any rights other than the rights expressly
granted it in this Agreement to the Licensed Technology, a Licensed Patent, or to any other
University-owned technology, patent applications, or patents.

     3.1.2. Sublicensing. Notwithstanding any term of this Agreement to the
contrary, the Company shall not, and shall not have the right to, sublicense its rights
under this Agreement.

	3.2.	 	The United States Government’s Rights. The Parties acknowledge and agree that the
federal government of the United States of America has certain rights in and to any
government-funded Licensed Technology as those rights are described in Chapter 18, Title 35 of
the United States Code and accompanying regulations, including Part 401, Chapter 37 of the
Code of Federal Regulations, and that the Parties’ rights and obligations under this Agreement
to any government-funded Licensed Technology, including the grant of license set forth above
in subsection 3.1.1, are subject to the applicable terms of the aforementioned United States
laws.

	3.3.	 	The University’s Rights. The University retains an irrevocable, nonexclusive license
to make, have made, and use products, processes, and other subject matter covered by the
Licensed Patents or the Licensed Technology for research, medical, instructional, or any other
academic purpose, including publications.

4. Applications and Patents.

	4.1.	 	Cost Reimbursement. The Company shall pay, or shall reimburse the University for
paying, reasonable and necessary costs (including attorneys’ and application fees) incurred
prior to, on, or after the Effective Date to apply for, prosecute, enforce, and maintain each
Licensed Patent in those countries where the Company intends to commercialize Licensed
Product, as provided for in section A3.6 of attached Exhibit A. For the avoidance of doubt,
the Company shall pay, or shall reimburse the University for paying, costs related to Licensed
Patents unless and until the Company notifies the University in writing of its decision to
opt-out of patent protection for a specific country in the Territory. In this event, the
Company shall not be responsible for reimbursing those costs and lose rights in that country.

	4.2.	 	Pre-Agreement Licensed Product Sales. The Company agrees to pay royalties in the
amounts set forth in this Agreement for any Licensed Products it has sold in the Territory
prior to the Effective Date.

-3-

 

	4.3.	 	Patent Application Filings during the Term of this Agreement.

     4.3.1. The University retains the sole and exclusive right to file or otherwise
prosecute patent applications with respect to the Licensed Technology. In no event shall
the Company file a patent application with respect to the Licensed Technology if a
University employee is an inventor on the patent application.

     4.3.2. The University shall determine in which countries the University will file, or
cause to be filed, a patent application with respect to the Licensed Technology. The
Company may request patent prosecution to be pursued in any given country. The Company will
specify in writing which of these countries it wishes to receive license from and shall pay
pro-rata share of patent costs as specified in section A3.6 of attached Exhibit A. For the
avoidance of doubt, Company shall pay, or shall reimburse the University for paying costs
related to Licensed Patents in all countries until the Company notifies the University in
writing of its decision to opt-out of said cost reimbursement for any specific country.

     4.3.3. For each patent application with respect to the Licensed Technology filed in a
particular country, the University shall retain counsel of its choice to file and prosecute
such patent application; the University shall take all commercially reasonable steps to
cause a patent application to be filed and a patent to be issued in that country. The
Company promptly shall reimburse the University for the University’s out-of-pocket costs,
including application and attorneys’ fees, to file, prosecute and maintain such patent
application and issued patent during the term of this Agreement as provided for in section
A3.4 of attached Exhibit A.

     4.3.4. No provision of this Agreement limits, conditions, or otherwise affects the
University’s right to prosecute a patent application with respect to the Licensed Technology
in any country.

	4.4.	 	Maintenance of Licensed Patents. The University shall take all commercially
reasonable steps to cause each Licensed Patent to remain or be valid and subsisting.

	4.5.	 	Ownership of the Licensed Patents. No provision of this Agreement grants the Company
any rights, titles, or interests (except for the grant of license in subsection 3.1.1 of this
Agreement) in the Licensed Patents, notwithstanding the Company’s payment of all or any
portion of the patent prosecution, maintenance, and related costs.

5. Commercialization.

	5.1.	 	Commercialization Efforts. The Company shall use its commercially reasonable
efforts, consistent with sound and reasonable business practices and judgment, to
commercialize the Licensed Technology and to manufacture and offer to make and sell Licensed
Products as soon as practicable and to maximize sales thereof.

-4-

 

	5.2.	 	Covenants Regarding the Manufacture of Licensed Products. The Company hereby
covenants and agrees that the manufacture, use, sale, or transfer of Licensed Products shall
comply with all applicable federal and state laws, including all federal export laws and
regulations. The Company hereby further covenants and agrees that, to the extent required by
35 United States Code Section 204, it shall substantially manufacture in the United States of
America all products embodying or produced through the use of an invention that is subject to
the rights of the federal government of the United States of America.

	5.3.	 	Commercialization Reports. Throughout the term of this Agreement, the Company shall
deliver to the University written reports of the Company’s efforts and plans to commercialize
the Licensed Technology and to manufacture, offer to sell, or sell Licensed Products,
including a projected timeline of development and sales. Prior to product introduction, these
reports will be delivered to the University every six (6) months from the first anniversary of
the Effective Date, and then annually, within thirty (30) days of the anniversary of the
Effective Date, after first product sale.

	5.4.	 	Use of the University’s Name and Trademarks or the Names of University Faculty, Staff, or
Students. No provision of this Agreement grants the Company any right or license to use
the name or trademarks of the University or the names, or identities of any member of the
faculty, staff, or student body of the University. The Company shall not use any such
trademarks, names, or identities without the University’s and, as the case may be, such
member’s prior written approval.

6. Payments, Reimbursements, Reports, and Records.

	6.1.	 	Payments. The Company shall deliver to the University the payment or payments
specified in section A3 of attached Exhibit A. The Company shall make such payments by check,
wire transfer, or any other mutually agreed-upon and generally accepted method of payment.
All checks to the University shall be made payable to “University of Washington” and shall be
mailed to the address specified in Article 21 of this Agreement and shall include the
University agreement number 18921A. Upon request, the University shall deliver to the Company
written wire transfer instructions.

	6.2.	 	Late Payments. Company agrees to pay a late fee for all amounts owed to the
University that are overdue by thirty (30) days or more. The late fee shall be computed as
the United States prime rate plus *(*%), compounded monthly, as set forth by The
Wall Street Journal (Western edition) on the date on which such payment is due, of the
outstanding, unpaid balance. The payment of such a late fee shall not foreclose or limit
University from exercising any other rights it may have as a consequence of the lateness of
any payment.

	6.3.	 	Sales Reports. Within thirty (30) days after the last day of a calendar quarter
during the term of this Agreement, the Company shall deliver to the University a written sales
report (a copy of the form of which is attached as Exhibit B) recounting the number and Net

-5-

 

	 	 	Sales Price amount (expressed in U. S. dollars) of all
sales, leases, or other dispositions of Licensed Products
made by the Company during such calendar quarter. The
Company shall deliver such written report to the University
even if the Company is not required hereunder to pay to the
University a payment for sales, leases, or other
dispositions of Licensed Products during the calendar
quarter.

	6.4.	 	Records Retention and Audit Rights.

     6.4.1. Throughout the term of this Agreement and for five (5) years thereafter, the
Company, at its expense, shall keep and maintain complete and accurate records of all sales,
leases, and other dispositions of Licensed Products during the term of this Agreement and
all other records related to this Agreement.

     6.4.2. The University, at its expense except as set forth below in this subsection,
shall have the right to inspect and audit the Company’s records referred to in subsection
6.4.1 hereof at the Company’s address as set forth in Article 21 of this Agreement or such
other locations as the Parties shall mutually agree during the Company’s normal business
hours. The University shall have the right to determine the Company’s compliance with the
terms of this Agreement. The Company shall reimburse the University for all its
out-of-pocket expenses to inspect and audit such records if the University, in accordance
with the results of such inspection and audit, determines that the Company has underpaid
amounts owed to the University by at least * (*%), in a reporting period. In
connection with, and prior to the commencement of, an audit, if the Company so requests in
writing to the University, the Company, the University and the auditor shall enter into an
agreement prohibiting the auditor and the University from disclosing the Company’s
nonpublic, proprietary information to any Third Party without the Company’s prior written
consent; provided, however, that consistent with generally accepted auditing standards and
the auditor’s professional judgment, the auditor may disclose such information to the
University and its agents, counsel, or consultants. The Company acknowledges that such an
agreement is adequate to protect its legitimate interests, and the Parties agree that there
shall be no additional nondisclosure agreement demanded as a condition to the commencement
of an audit and the University’s exercising its rights under this subsection.

	6.5.	 	Currency and Checks. All computations and payments made under this Agreement shall
be in United States dollars. The exchange rate for the currency into dollars as reported in
the Wall Street Journal as the New York foreign exchange mid-range rate on the last business
day of the month in which the transaction was entered into shall be used for determining the
dollar value of transactions conducted in non-United States dollar currencies.

7. Third Party Infringement of Licensed Patent.

	7.1.	 	Notice of Third Party’s Infringement. In the event the Company learns of
substantial, credible evidence that a Third Party is making, using, or selling a product in a
Field of

-6-

 

	 	 	Use in the Territory that infringes a Licensed Patent, the Company promptly thereafter shall
deliver written notice of the possible infringement to the University, describing the
information suggesting infringement of the Licensed Patent.

	7.2.	 	Legal Action to Enforce a Licensed Patent. The University shall have no obligation
under this Agreement to commence or maintain a suit against any alleged infringer of Licensed
Patents. The University reserves the right to grant a license to the infringer to settle a
University-initiated action. No provision of this Agreement shall limit, condition, or
otherwise affect the University’s statutory and common-law rights to commence an action to
enforce a Licensed Patent.

8. Termination.

     8.1. By the University.

     8.1.1. If the Company breaches or fails to perform one or more of its duties under this
Agreement, the University may deliver to the Company a written notice of default. The
University may terminate this Agreement by delivering to the Company a written notice of
termination if the default has not cured in full within sixty (60) days of the delivery to
the Company of the notice of default.

     8.1.2. The University may terminate this Agreement by delivering to the Company a
written notice of termination at least ten (10) days prior to the date of termination if the
Company (i) becomes insolvent; (ii) voluntarily files or has filed against it a petition
under applicable bankruptcy or insolvency laws that the Company fails to have released
within thirty (30) days after filing; (iii) proposes any dissolution, composition, or
financial reorganization with creditors or if a receiver, trustee, custodian, or similar
agent is appointed; or (iv) makes a general assignment for the benefit of creditors.

	8.2.	 	By the Company. The Company may terminate this Agreement at any time by delivering
to the University a written notice of termination at least sixty (60) days prior to the
effective date of termination.

	8.3.	 	Post-termination Period. The Company shall not use, or permit others to use, the
Licensed Technology or manufacture or have manufactured Licensed Products after the
termination of this Agreement under section 8.1 or 8.2. After the termination of this
Agreement under section 8.1 or 8.2, the Company shall not offer to sell and sell, offer to
lease and lease, and otherwise offer to dispose of or dispose of Licensed Products in the
Territory that were manufactured prior to the of this Agreement.

9. Release, Indemnification, and Insurance.

	9.1.	 	The Company’s Release. For itself and its employees, the Company hereby releases the
University and its regents, employees, and agents forever from any and all suits, actions,

-7-

 

	 	 	claims, liabilities, demands, damages, losses, or expenses (including reasonable attorneys’
and investigative expenses) relating to or arising out of (i) the manufacture, use, lease,
sale, or other disposition of a Licensed Product; (ii) the assigning or licensing of the
Company’s rights under this Agreement; or (iii) with the exception of the warranties set
forth in section 10.1 of this Agreement, the University’s performance of its obligations
hereunder.

	9.2.	 	Indemnification. Throughout the term of this Agreement and thereafter, the Company
shall indemnify, defend, and hold the University and its regents, employees, and agents
harmless from all suits, actions, claims, liabilities, demands, damages, losses, or expenses
(including reasonable attorneys’ and investigative expenses), relating to or arising out of
any default in the performance of any material term or provision herein. In addition,
throughout the term of this Agreement and thereafter, the Company shall indemnify, defend, and
hold the University and its regents, employees, and agents harmless from all suits, actions,
claims, liabilities, demands, damages, losses, or expenses (including reasonable attorneys’
and investigative expenses), relating to or arising out of the manufacture, use, lease, sale,
or other disposition of a Licensed Product, including, without limitation, breach of contract
and warranty and products-liability claims relating to a Licensed Product.
	 
	9.3.	 	The Company’s Insurance. Throughout the term of this Agreement, or during such
period as the Parties shall agree in writing, the Company shall maintain in full force and
effect comprehensive general liability (CGL) insurance, consistent with sound business
practices. Such insurance policy shall include coverage for claims that may be asserted by
the University against the Company under section 9.2 of this Agreement and for claims by a
Third Party against the Company or the University arising out of the purchase or use of a
Licensed Product. Such insurance policy shall name the University as an additional insured.
Such insurance policy shall require the insurer to deliver written notice to the University at
the address set forth in Article 21 of this Agreement, at least forty-five (45) days prior to
the termination of the policy. The Company shall deliver to the University a copy of the
certificate of insurance for such policy.

10. Warranties.

	10.1.	 	Authority. Each Party represents and warrants to the other Party that it has full
corporate power and authority to execute, deliver, and perform this Agreement, and that no
other corporate proceedings by such Party are necessary to authorize the Party’s execution or
delivery of this Agreement.

	10.2.	 	Disclaimers.

     10.2.1. EXCEPT FOR THE EXPRESS WARRANTIES SET FORTH IN SECTION 10.1 OF THIS AGREEMENT,
THE UNIVERSITY DISCLAIMS AND EXCLUDES ALL WARRANTIES, EXPRESS AND IMPLIED, CONCERNING THE
LICENSED TECHNOLOGY, EACH LICENSED PATENT, EACH PATENT

-8-

 

APPLICATION, AND EACH LICENSED PRODUCT, INCLUDING, WITHOUT LIMITATION, WARRANTIES OF
NON-INFRINGEMENT, NON-INTERFERENCE AND THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS
FOR A PARTICULAR PURPOSE.

     10.2.2. The University expressly disclaims any warranties concerning and makes no
representations:

     10.2.2.1. that the Licensed Patents will be approved or will issue;

     10.2.2.2. concerning the validity or scope of any Licensed Patent; or

     10.2.2.3. that the manufacture, use, sale, lease or other disposition of a
Licensed Product will not infringe a Third Party’s patent or violate its
intellectual property rights.

     10.2.3. The Company specifically acknowledges the existence of possibly interfering
patent rights of Third Parties, including, without limitation, certain patent rights of
University of North Carolina (Patent Application Number WO2005030039A2) and Academica Sinica
(Patent Application Number WO2006069339A2).

11. Damages.

	11.1.	 	Remedy Limitation. EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, IN NO EVENT
SHALL THE UNIVERSITY BE LIABLE FOR (A) PERSONAL INJURY OR PROPERTY DAMAGES ARISING IN
CONNECTION WITH THE ACTIVITIES CONTEMPLATED IN THIS AGREEMENT OR (B) LOST PROFITS, LOST
BUSINESS OPPORTUNITY, INVENTORY LOSS, WORK STOPPAGE, LOST DATA OR ANY OTHER RELIANCE OR
EXPECTANCY, DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, OF ANY KIND.

	11.2.	 	Damage Cap. IN NO EVENT SHALL THE UNIVERSITY’S TOTAL LIABILITY FOR THE BREACH OR
NONPERFORMANCE OF THIS AGREEMENT EXCEED THE AMOUNT OF PAYMENTS PAID TO THE UNIVERSITY UNDER
SECTION 6.1 OF THIS AGREEMENT. THIS LIMITATION SHALL APPLY TO CONTRACT, TORT, AND ANY OTHER
CLAIM OF WHATEVER NATURE.

12. Amendment and Waiver. This Agreement may be amended from time to time only by a written
instrument signed by the Parties. No term or provision of this Agreement shall be waived and no
breach excused unless such waiver or consent shall be in writing and signed by the Party claimed to
have waived or consented. No waiver of a breach shall be deemed to be a waiver of a different or
subsequent breach.

-9-

 

13. Assignment. The Company, without the prior approval of the University, may assign all, but no
less than all, its rights and delegate all, but no less than all, its duties under this Agreement
to another if (i) the Company or its successors delivers to the University written notice of the
actual assignment at least ninety (90) days prior to the effective date of the event described
below in part (ii) of this paragraph, and (ii) the assignment is made as a part of and in
connection with (A) the sale by the Company of all or substantially all of its assets to a single
purchaser, (B) the sale, transfer, or exchange by the shareholders, partners, or equity owners of
the Company of a majority interest in the Company to a single purchaser, or (C) the merger of the
Company into another corporation or other business entity. Any assignment made in violation of
this subsection shall be void and shall, without further act, cause the immediate termination of
this Agreement.

     This Agreement shall inure to the benefit of the Company and the University and trustees.

14. Applicable Law. The internal laws of the state of Washington shall govern the validity,
construction, and enforceability of this Agreement, without giving effect to the conflict of laws
principles thereof.

15. Confidentiality.

	15.1.	 	Form of transfer. Confidential Information may be conveyed in written, graphic, oral,
physical, or electronic form. Confidential Information shall include, without limitation,
Licensed Technology as well as Company’s business plan or reports. Company and University
must clearly mark its Confidential Information “confidential.” If a disclosing Party
communicates Confidential Information orally, the disclosing Party shall reduce such oral
communications to writing of disclosure to the receiving Party and clearly mark it
“confidential” and provide a copy to the receiving Party within thirty (30) days at the
address in Article 21.

	15.2.	 	Exceptions. Confidential Information does not include: any information that: is required by
law to be disclosed; is or becomes part of the public domain through no fault of recipient; is
known to recipient prior to the disclosure by the disclosing Party, as evidenced by
documentation; is publicly released as authorized under this Agreement by the University, its
employees or agents; is subsequently obtained by a Party from a Third Party who is authorized
to have such information; or is independently developed by a Party without reliance on any
portion of the Confidential Information received from the disclosing Party and without any
breach of this Agreement as evidenced by documentation.

	15.3.	 	No Unauthorized Disclosure of Confidential Information. Beginning on the Effective Date and
continuing throughout the term of this Agreement and thereafter for a period of five (5) years
(“Confidentiality Period”), neither Party shall disclose or otherwise make known or available
to any Third Party or Affiliate any Confidential Information, without the express prior
written consent of the other. In no event shall either Party incorporate

-10-

 

or otherwise use Confidential Information in connection with any patent application filed by
or on behalf of the other. Both Parties shall utilize reasonable procedures to safeguard
the Confidential Information.

	15.4.	 	Access to University Information. The University is an agency of the State of Washington
and is subject to the Washington Public Records Act, RCW 42.56 et seq., (“Act”), and no
obligation assumed by the University under this Agreement shall be deemed to be inconsistent
with the University’s obligations as defined under the Act and as interpreted by the
University in its sole discretion. In the event the University receives a request for public
records under the Act for documents containing Confidential Information, and if the University
concludes that the documents are not otherwise exempt from public disclosure, the University
will provide the Company notice of the request before releasing such documents. Such notice
shall be provided in a timely manner to afford the Company sufficient time to review such
documents and/or seek a protective order, at the Company’s expense utilizing the procedures
described in RCW 42.56.540. The University shall have no obligation to protect the
Confidential Information from disclosure in response to a request for public records.

16. Consent and Approvals. Except as otherwise expressly provided, all consents or approvals
required under the terms of this Agreement shall be in writing and shall not be unreasonably
withheld or delayed.

17. Construction. The headings preceding and labeling the sections of this Agreement are for the
purpose of identification only and shall not in any event be employed or used for the purpose of
construction or interpretation of any portion of this Agreement. As used herein and where
necessary, the singular shall include the plural and vice versa, and masculine, feminine, and
neuter expressions shall be interchangeable.

18. Enforceability. If a court of competent jurisdiction adjudges a provision of this Agreement
unenforceable, invalid, or void, such determination shall not impair the enforceability of any of
the remaining provisions hereof and such provisions shall remain in full force and effect.

19. Entire Agreement; No Third-Party Beneficiaries. This Agreement (including all attachments,
exhibits, and amendments hereto) is intended by the Parties as the final and binding expression of
their contract and agreement and as the complete and exclusive statement of the terms thereof.
This Agreement cancels, supersedes, and revokes all prior negotiations, representations and
agreements among the Parties, whether oral or written, relating to the subject matter of this
Agreement.

Company has evaluated the Licensed Technology under a Confidentiality Agreement (“Confidentiality
Agreement”) with University (UWIL # 18127A) with an effective date of August 2, 2006.
Confidentiality Agreement is hereby supplanted entirely by this Agreement.

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No provision of this Agreement, express or implied, is intended to confer upon any person other
than the Parties to this Agreement any rights, remedies, obligations, or liabilities hereunder.

20. Language and Currency. Unless otherwise expressly provided in this Agreement, all notices,
reports, and other documents and instruments that a Party hereto elects or is required by the terms
of this Agreement to deliver to the other Party hereto shall be in English, and all notices,
reports, and other documents and instruments detailing revenues and earned under this Agreement or
expenses chargeable to a Party hereto shall be United States dollar denominated.

21. Notices. All notices, requests, and other communications that a Party is required or elects to
deliver shall be in writing and shall be delivered personally, or by facsimile or electronic mail
(provided such delivery is confirmed), or by a recognized overnight courier service or by United
States mail, first-class, certified or registered, postage prepaid, return receipt requested, to
the other Party at its address set forth below or to such other address as such Party may designate
by notice given pursuant to this article:

	 	 	 	 	 
	 

	 	If to the University:
	 	UW TechTransfer Invention Licensing
	 

	 	 	 	ATTN: Director
	 

	 	 	 	4311 11th Avenue NE, Suite 500
	 

	 	 	 	Seattle, WA 98105-4608
	 

	 	 	 	Facsimile No.: 206-685-4767
	 
	 	 	 	 
	 

	 	For notices sent
	 	University of Washington
	 

	 	pursuant to Article
	 	Office of the Attorney General
	 

	 	8, with a copy to:
	 	101 Gerberding Hall
	 

	 	 	 	Seattle, WA 98105
	 

	 	 	 	Facsimile No.: 206-543-0779
	 
	 	 	 	 
	 

	 	If to the Company:
	 	Osmetech
	 

	 	 	 	ATTN: Legal Department
	 

	 	 	 	757 S. Raymond Ave.
	 

	 	 	 	Pasadena, CA 91105
	 

	 	 	 	Facsimile: 626 463 2012

22. Publicity. Nothing contained in this Agreement shall be construed as conferring any right to
use in advertising, publicity or other promotional activities any name, trade name, trademark, or
other designation of the University without the express written permission of the University,
unless such listing is required under local laws or regulations, provided that the Company may
state the existence of this Agreement and the fact that both Parties entered into it. For any use
other than the foregoing, the Company hereby expressly agrees not to use the name “University of
Washington” or any contraction, abbreviation, or simulation thereof without prior written approval
from an authorized representative of the University. The University shall have the right to report
in its customary publications and presentations that the University and the

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Company have entered into a license agreement for the Licensed Technology and the University may
use the Company logos in such publications and presentations provided that the University does not
modify the Company’s logos and does not through such use imply any endorsement by the Company of
the University.

23. Relationship of Parties. In entering into, and performing their duties under, this Agreement,
the Parties are acting as independent contractors and independent employers. No provision of this
Agreement shall create or be construed as creating a partnership, joint venture, or agency
relationship between the Parties. No Party shall have the authority to act for or bind the other
Party in any respect.

24. Security Interest. In no event shall the Company grant, or permit any person to assert or
perfect, a security interest in the Company’s rights under this Agreement.

25. Survival. Immediately upon the termination or expiration of this Agreement, all the Company’s
rights under this Agreement shall terminate; provided, however, the Company’s obligations that have
accrued prior to the effective date of termination or expiration of this Agreement (e.g., the
obligation to report and make payments on sales, leases, or dispositions of Licensed Products and
to reimburse the University for costs) and the obligations specified in sections 6.1, 6.2, and A3.1
of the Agreement shall survive. The obligations and rights set forth in sections 6.4 and 8.3 and
articles 9, 10, and Il of this Agreement shall survive the termination or expiration of this
Agreement.

26. Collection Costs and Attorneys’ Fees. If a Party shall fail to perform an obligation or
otherwise breaches one or more of the terms of this Agreement, the other Party may recover from the
non-performing breaching Party all its costs (including actual attorneys’ and investigative fees)
to enforce the terms of this Agreement.

27. Forum Selection. A suit, claim, or other action to enforce the terms of this Agreement shall
be brought exclusively in the state courts of King County, Washington. The Company hereby submits
to the jurisdiction of that court and waives any objections it may have to that court asserting
jurisdiction over the Company or its assets and property.

28. Patent Marking. Company shall mark any and all material forms of Licensed Product or packaging
pertaining thereto made and sold by Company in the Territory with patent marking conforming to 35
U.S.C. §287(a), as amended from time to time. Such marking shall further identify the pendency
of any U.S. patent application and/or any issued U.S. or foreign patent forming any part of the
License by rights. All Licensed Product shipped to or sold in other countries shall be marked
in such a manner as to provide notice to potential infringers pursuant to the patent law and
practice of the country of manufacture or sale.

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     IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed by their
respective authorized representatives.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	University of Washington	 	 	 	Osmetech Molecular Diagnostics	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Fiona Wills	 	 	 	By:	 	/s/ Edward Kreusser	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Fiona Wills
	 	 	 	 	 	Name:
	 	Edward O. Kreusser, Esq.	 	 
	 

	 	Title:
	 	 Interim Director
	 	 	 	 	 	Title:
	 	VP, IP and Legal Affairs	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Date:                                     	 	 	 	 Date:                                     	 	 

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Exhibit A

Non-Exclusive Patent License Schedule

	1.	 	Fields of Use (sections 1.2 and 3.1.1):

Fields of Use: Human clinical diagnostics field, including Research Use Only (RUO),
Investigational Use Only, (NO), Analyte Specific Reagents (ASR), and In Vitro Diagnostic
(IVD) fields of use for anticoagulant dosing. IVD field of use expressly excludes market for
tests performed in the home. Any reagents or kits sold under this Agreement are not for
remanufacture, re-kitting, or resale to any Third Party, in whole or part.

	2.	 	Licensed Patents (section 1.4):

	 	 	 	 	 	 	 	 	 
	Patent Application	 	 	 	 	 	 	 	Application
	No.:	 	UW Reference#	 	Inventors	 	Assignee	 	Date
	US 10/967,879

	 	7063P.1US
	 	Mark Rieder

Allan Rettie
	 	University of
Washington
	 	10/18/2004
	 
	 	 	 	 	 	 	 	 
	PCT/US2005/037058

	 	7063P. 1PCT
	 	Mark Rieder

Allan Rettie
	 	University of
Washington
	 	10/17/2005
	 
	 	 	 	 	 	 	 	 
	US 11/141,288

	 	7063P.1USCIP1
	 	Mark Rieder

Allan Rettie
	 	University of
Washington
	 	05/31/2005

	3.	 	Payments (section 6.1):

	A3.1.	 	 Up-front Payment. The Company shall pay to the
University *
dollars($*) as an up-front payment. This up-front payment shall be due as of the Effective
Date and payable in three equal installments of * dollars ($*). The first
installment shall be payable within thirty (30) days of the Effective Date. The next installment
shall be payable within thirty (30) days of the first anniversary of the Effective Date and the
last installment shall be payable within thirty (30) days of the second anniversary of the
Effective Date. This up-front payment shall be non-refundable and not creditable against future
royalty obligations and shall survive termination or expiration of this Agreement.

	A3.2.	 	 Running Royalty Payments. The Company shall pay to the University within thirty
(30) days after the last day of each calendar quarter during the term of this Agreement an
amount equal to * (*%) of the Net Sales Price of all sales, leases, or
dispositions of Licensed Products made by the Company during such quarter as a running
royalty payment. In the event that Company is required to pay royalties to one or more Third
Parties as necessary to avoid infringement thereof by the manufacture, use, or sale of any
Licensed Products, or to avoid infringement-related litigation with respect to such patents,
then the running royalty rate specified shall be reduced by an amount equal to one-half of
the royalties actually paid to the Third Party, provided that in

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	 	 	no event shall the royalties otherwise due to the University
be less than * (*%) of the royalties that would be payable to the University were the University the sole
licensor with respect to such licensed Products. For the avoidance of doubt, under no
circumstance shall the royalty to the University be less than * (*%) of Net Sales
Price following such reduction.
	A3.3.	 	 Combination Products. If a Licensed Product is sold in combination with one or more
other products or components that is not a Licensed Product, Net Sales Price shall be
calculated by multiplying Net Sales Price for such combination product by the fraction A/(A+B)
where A is the invoice price if the Licensed Product is sold separately, and B is the
aggregate invoice price of any other active component or components, or devices, in the
combination if sold separately, or,; if either of the products are not sold separately, than
the allocation shall be commercially reasonable and determined by good faith negotiation
between the University and the Company. Notwithstanding the foregoing, in no event shall the
royalties due the University be less than * (*%) of what would otherwise be due
if the Licensed Product was sold as an individual product.
	 
	A3.4. 	 	Annual Minimum Royalty Payments. The Company shall pay to the University within
thirty (30) days after each anniversary of the Effective Date, annual minimum royalties, to be
creditable against running royalties for the preceding year on a non-cumulative basis, as set
forth in the following table:

	 	 	 	 	 
	Due on Anniversary Date of Year	 	$ Amount in USD
	#:
	 	 	 	 
	*
	 	 	*	 
	*
	 	 	*	 
	*
	 	 	*	 
	*
	 	 	*	 
	* and each year thereafter
	 	 	*	 

	A3.6 	 	Patent Prosecution Reimbursements:, The Company shall pay to the
University within thirty (30) days after the Effective Date, *
($*)
in full satisfaction of costs (including attorneys’ and application fees) incurred prior to
the Effective Date to apply for, prosecute, enforce, and maintain each Licensed Patent in
those countries where Company intends to commercialize licensed Product pursuant to section
4.1 of this Agreement. This payment shall be non-refundable and not creditable against the
Company’s other patent prosecution payment obligations. The Company shall be responsible for
its pro-rata share of ongoing patent costs, determined by the number of other licensees at the
time such fees and costs were incurred, for such patent or patent application. Pro-rata share
shall be calculated for each country the Company requests a license.

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