Document:

Exclusive License Agrmnt - Indiana University Research & Technology Corporation

 Exhibit 10.10 

Confidential Treatment Requested by 

Pacific Biosciences of California, Inc. 

IURTC Tech No. [...***...] 

EXCLUSIVE LICENSE AGREEMENT 

Between 

INDIANA UNIVERSITY RESEARCH AND TECHNOLOGY 

CORPORATION 

Licensor 

And 

NANOFLUIDICS, INC. 

Licensee 
  

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 Introduction: This Exclusive License Agreement (“Agreement”) is
made and entered into on the Effective Date by and between the Indiana University Research and Technology Corporation, a nonprofit corporation organized under the laws of the state of Indiana, having its principal offices at 351 West
10th Street, Indianapolis, Indiana 46202 (hereinafter
“IURTC”), and Nanofluidics, Inc., a corporation organized under the laws of the State of Delaware, having its address at 1505 Adams Drive, Menlo Park, CA 94025 (hereinafter “Nanofluidics”). 

 

	1	Background: Through a Memorandum of Agreement between Indiana University (IU) and the Advanced Research and Technology Institute (ARTI), the predecessor
corporation to IURTC, dated January 1, 1997, IU assigns its intellectual property to IURTC and IURTC is responsible for managing the intellectual property through its Office of Technology Transfer. IURTC is the owner of certain Intellectual
Property that is the subject of this Agreement and has the right to grant licenses. IURTC wishes to allow the Intellectual Property to be used to further scientific research and for new product development and other applications in the public
interest and is willing to grant a license for such uses. Nanofluidics represents to IURTC that it has the necessary product development, manufacturing and marketing capabilities to commercialize products based on such Intellectual Property.
Nanofluidics desires to obtain a license to use these properties and information for its own commercial research and development endeavors upon the terms and conditions set forth in this Agreement. In consideration of these premises and the mutual
promises contained herein, the Parties further agree as follows. 

  

	2	Definitions: For the purposes of this Agreement, the following words and phrases will have the meanings assigned to them below. 

 

	 	2.1	Calendar Half: Each six-month period, or portion thereof, beginning on January 1 or July 1. 

 

	 	2.2	Calendar Year: Each twelve month period, or portion thereof, beginning on January 1. 

 

	 	2.3	Confidential Information: All terms of this agreement and any information provided by a Party to the other Party pursuant to this Agreement, which is identified as
“Confidential Information” at the time provided. 

  

	 	2.4	Development Plan: Nanofluidics’ good faith, bona fide plan for the development, manufacture, promotion, importation, sale and/or marketing of Licensed Products.

  

	 	2.5	Diagnostic: A Licensed Product which is intended to diagnose or ascertain clinical condition(s) of a patient, wherein information is to be reported to a patient and/or
his/her caregiver for use in a therapeutic decision. 

  

	 	2.6	Effective Date: May 15, 2005. 

  

	 	2.7	Field: [...***...] 

  

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	 	2.8	First Commercial Sale: The earliest date on which Nanofluidics or any of its Sublicensees executes a Sale (including equivalent cash value for trades or other non-cash
payments). The transfer of Licensed Products by Nanofluidics or its Sublicensees strictly for their own laboratory research and development purposes, beta-testing and/or clinical testing does not constitute a First Commercial Sale for the purposes
of this Agreement, provided that Nanofluidics or its Sublicensees receive no payment or other compensation or value for such Licensed Product in excess of the fully burdened (i.e., direct and indirect) costs of producing and transporting such
materials. 

  

	 	2.9	Intellectual Property: Any and all rights under the Patent Rights. 

  

	 	2.10	Licensed Product: Any product made, made for, used, sold or imported by Nanofluidics or any Sublicensees that: (a) in the absence of this Agreement would infringe
at least one Valid Claim, or (b) uses a process covered by a Valid Claim. 

  

	 	2.11	Nanofluidics: Nanofluidics, Inc. and its affiliates which are exercising the rights granted in Article 3. For the purpose of this definition, affiliate is any person or
entity that, directly or indirectly, owns or controls a Party or that is controlled by or under common control with a Party. Control(s) or controlled by means (a) direct or indirect ownership of at least 50% of the outstanding voting securities
of a corporation, (b) the right to receive at least 50% of the earnings of the person, corporation, or other entity in question, or (c) the right to control the business decisions of the person, corporation, or other entity in question.

  

	 	2.12	Net Sales: The total of all value, compensation, and payments received for Sales of Licensed Products, it being understood that Net Sales will include only Sales of
[...***...], less the following: 

  

	 	2.12.1	Trade, quantity and cash discounts on Licensed Products actually provided to third parties. 

 

	 	2.12.2	Credits, allowances or refunds, not to exceed the original invoice amount, for actual claims, damaged goods, rejections or returns of Licensed Products.

  

	 	2.12.3	Excise, sale, use, value added or other taxes, other than income taxes, paid by Nanofluidics or its Sublicensees due to the Sale of Licensed Products.

  

	 	2.12.4	Freight, transport packaging, or insurance charges associated with transportation. 

 

	 	2.13	Party: IURTC or Nanofluidics. Collectively, IURTC and Nanofluidics are referred to as the “Parties.” 

 

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	 	2.14	Patent Rights: Any and all rights in and to United States Patent No. [...***...], as well as all patents or applications claiming priority thereto or common
priority with United States Patent No. [...***...], including all divisions, continuations, continuations-in-part, reissues, reexaminations, and any foreign counterparts to the foregoing patents or applications. 

 

	 	2.15	Sale: Any transaction in which a Licensed Product is exchanged or transferred for value. A Sale of a Licensed Product will be deemed to have been made at the time
Nanofluidics (or anyone acting on behalf of or for the benefit of Nanofluidics) first invoices, ships, or receives value for a Licensed Product. 

  

	 	2.16	Sublicensee: A person or entity to whom Nanofluidics has granted a sublicense pursuant to and in accordance with Article 3 of this Agreement. 

 

	 	2.17	Sublicensing Revenue: All payments received by Nanofluidics from its Sublicensees specifically attributable to the licensing of Intellectual Property, including upfront
cash payments, minimum royalties and royalties on Net Sales on the account of the importation, manufacture, sale, or use of Licensed Products in the Territory during the Term of this Agreement. 

 

	 	2.18	Term: Commencing on the Effective Date and continuing until the expiration of the last to expire patents included in the Patent Rights unless earlier terminated in
accordance with this Agreement. 

  

	 	2.19	Territory: Anywhere in the world, except those countries to which export of technology or goods is prohibited by applicable U.S. export control laws or regulations.

  

	 	2.20	Valid Claim: A claim of an issued and unexpired patent included in the Patent Rights that has not been disclaimed, or has not been held invalid or unenforceable by a
court or other governmental agency of competent jurisdiction in a decision or order that is not subject to appeal. 

  

	3	License Grant: Subject to the terms and conditions set forth in this Agreement, IURTC hereby grants to Nanofluidics and Nanofluidics hereby accepts, the
following license during the Term in the Territory: 

  

	 	3.1	An exclusive, fee- and royalty-bearing license, including the right to enforce the Patent Rights and the right to grant sublicenses as set forth herein, under the
Intellectual Property, to make, have made, sell, offer for sale, have sold, use, import and have imported Licensed Products in the Field. 

  

	 	3.2	Nanofluidics may grant sublicenses under this Agreement only in strict compliance with the following terms and conditions: 

 

	 	3.2.1	Only Nanofluidics is permitted to grant sublicenses. Any sublicense granted by Nanofluidics under this Agreement shall provide that Sublicensees:

  

	 	3.2.1.1	Indemnify and hold harmless IURTC Indemnitees (as defined in Article 11) to the same extent and under terms no less favorable to IURTC Indemnitees as Nanofluidics’
obligations under Article 11 of this Agreement. 

  

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	 	3.2.1.2	Maintain insurance for IURTC’s benefit to the same extent and under terms no less favorable to IURTC as Nanofluidics’ obligations under Article 12 of this
Agreement. 

  

	 	3.2.1.3	Maintain books and records and allow audits for IURTC’s benefit to the same extent and under terms no less favorable to IURTC as Nanofluidics’ obligations
under Section 6.4 of this Agreement. 

  

	 	3.2.1.4	Use commercially reasonable efforts to comply with those parts of Nanofluidics’ Development Plan referred to in Article 4 of this Agreement which are relevant to
the activities of the Sublicensee. 

  

	 	3.2.1.5	Will pay directly to IURTC the Sublicensing Revenue then due or thereafter due to Nanofluidics upon receipt of notice from IURTC and only after Nanofluidics enters
bankruptcy or receivership, voluntarily or involuntarily. IURTC will remit to Nanofluidics any amounts received that exceed the sum actually owed by Nanofluidics to IURTC. 

 

	 	3.2.1.6	Will become direct licensees of IURTC under the rights originally sublicensed to them by Nanofluidics if this Agreement is terminated prior to expiration, provided that
(i) the Sublicensee did not cause the termination of this Agreement and (ii) the Sublicensee agrees to reasonably comply with the relevant terms of this Agreement and to fulfill all the responsibilities of Nanofluidics hereunder including
reasonable obligations to continue with product development. In no event, however, shall a person or entity who becomes a direct licensee pursuant to this provision have any right to grant sublicenses under this Agreement. Sublicensing agreements
will remain in effect if this Agreement is terminated prior to expiration. 

  

	 	3.2.2	Within thirty (30) days of the effective date of any sublicense, Nanofluidics shall provide IURTC a complete copy of the sublicense and all exhibits thereto. If
the original sublicense is written in a language other than English, the copy of the sublicense and all exhibits thereto shall be accompanied by a complete translation written in English. Nanofluidics represents and warrants that such translation
will be a true and accurate translation of the sublicense agreement and its exhibits. 

  

	 	3.2.3	Nanofluidics will be primarily liable to IURTC for all of Nanofluidics’ obligations contained in this Agreement. Any act or omission by a Sublicensee that would be
a breach of this Agreement if not unreasonably imputed to Nanofluidics will be deemed to be a breach by Nanofluidics of this Agreement. 

  

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	 	3.2.4	If IURTC becomes aware of the breach, IURTC will provide Nanofluidics reasonable advance notice of such act or omission by a Sublicensee, and afford Nanofluidics the
opportunity to cure the breach within ninety (90) days after Nanofluidics receives the notice from IURTC. 

  

	 	3.3	The license “to have made” granted in Articles 3.1 and 3.2 means that the Nanofluidics may contract with one or more third parties to manufacture Licensed
Products for Nanofluidics for sale or offer for sale by Nanofluidics or Sublicensees within the scope of its (or their) sales operations. Nanofluidics shall require all such third parties to assume confidentiality obligations consonant with Article
7 of this Agreement. 

  

	 	3.4	IURTC and IU may use the Intellectual Property for non-commercial educational and research purposes and permit other universities and non-profit research institutes to
do the same, it being understood that no rights will be extended to commercial entities pursuant to this section. 

  

	 	3.5	Except with respect to Confidential Information provided by Nanofluidics under this Agreement, Nanofluidics may not in any way restrict the rights of IU, other
universities or non-profit institutions, or their faculty, staff, students, or employees from publishing the results of their research related to the Intellectual Property. 

 

	 	3.6	This Agreement provides Nanofluidics and Sublicensees no ownership rights of any kind in the Intellectual Property. All ownership rights remain the property of IURTC.

  

	 	3.7	In accordance with Public Laws 96-517, 97-256 and 98-620, codified at 35 U.S.C. §§ 200-212, the United States government retains certain rights to inventions
arising from federally supported research or development. Under these laws and implementing regulations, the government may impose requirements on such inventions. Licensed Products embodying inventions subject to these laws and regulations sold in
the United States must be substantially manufactured in the United States. The license rights granted in this Agreement are expressly made subject to these laws and regulations as they may be amended from time to time. Nanofluidics shall be required
to abide by all such laws and regulations and shall ensure that all sublicenses under this Agreement impose a similar requirement upon all Sublicensees. 

  

	 	3.8	Nanofluidics shall ensure that appropriate markings, such as the patent number included in the Patent Rights, appears in accordance with each country’s patent
laws, on all Licensed Products (or their packaging, as appropriate) sold by or on behalf of Nanofluidics and all Sublicensees. 

  

	4	Diligence: Nanofluidics agrees to use commercially reasonable efforts to develop, manufacture, promote and sell Licensed Products (including sales through agents
or distributors) in accordance with the Development Plan. 

  

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	 	4.1	Within sixty days of the Effective Date of this Agreement, Nanofluidics will provide IURTC with a Development Plan that contains Nanofluidics’ good faith, bona
fide plans for commercializing Licensed Products as rapidly and extensively as practicable. The Development Plan will contain the following information: 

  

	 	4.1.1	A summary of work completed as of the submission date of the Development Plan relating to development of Licensed Products and a description of each Licensed Product
planned for development. 

  

	 	4.1.2	Tasks to be performed by Nanofluidics, its contractors and/or Sublicensees to develop Licensed Product to the point of commercialization, including estimated time
schedules for specific tasks to be accomplished. 

  

	 	4.1.3	Tasks to be performed to achieve regulatory approval or other certification of Licensed Product, including estimated time schedules for each. 

 

	 	4.1.4	Identification of the primary country(ies) in which the Licensed Product(s) will be sold and a good faith estimate of time of First Commercial Sale in the primary
country(ies). 

  

	 	4.2	Nanofluidics will update the Development Plan and report progress against the Plan in writing to IURTC no later than January 31 of the Calendar Year following the
Calendar Year in which the Effective Date falls and no later than January 31 of each subsequent Calendar Year. The updates and reports will summarize in reasonable detail the progress achieved and any problems encountered in the development,
evaluation, testing, manufacture, initial sale, and/or initial marketing of each Licensed Product. Upon reasonable request by IURTC, Nanofluidics will consult with IURTC about tasks, schedules and progress. 

 

	 	4.3	Prior to the First Commercial Sale of any Licensed Product, Nanofluidics will be considered diligent developing any Licensed Product so long as Nanofluidics timely
provides the required updates and progress reports to the Development Plan and so long as Nanofluidics: 

  

	 	4.3.1	Provides financial and other resources required to maintain progress in accomplishing the Development Plan as to any Licensed Product. 

 

	 	4.3.2	Uses commercially reasonable efforts to conduct and/or enable others to conduct all activities required to maintain scheduled progress to accomplish the Development
Plan as to any Licensed Product. 

  

	 	4.4	Within [...***...] after the First Commercial Sale of a Licensed Product Nanofluidics will be considered diligent if [...***...]. 

 

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	 	4.5	If Nanofluidics has ceased to develop, manufacture, promote and sell Licensed Products (including sales through agents or distributors) in accordance with the
provisions of this Article, for reasons other than: (a) a governmental agency has withheld regulatory approval notwithstanding Nanofluidics’ diligent efforts to obtain such approval; (b) Nanofluidics encountered unanticipated
technical or scientific problems that have been promptly reported in writing to IURTC; or (c) Nanofluidics encountered other causes beyond its reasonable control, notwithstanding its diligent efforts to overcome them, and which have been
promptly reported in writing to IURTC; then IURTC must notify Nanofluidics of its belief that Nanofluidics has not reasonably fulfilled the diligence obligations pursuant to any provisions in Article 4 and provide reasonable justification for such
belief. Upon provision of such notice and at the request of IURTC, Nanofluidics must show cause why the exclusivity granted hereunder should not be terminated. If within ninety (90) days after IURTC’s service of notice, Nanofluidics has
not provided IURTC with reasonable evidence that Nanofluidics has met the diligence obligations of this Article 4, then IURTC may immediately terminate the exclusive license granted hereunder. Notwithstanding the foregoing, the Parties agree to
engage in good faith discussions, and negotiations as necessary, prior to any early termination of this Agreement as provided herein. 

  

	5	Fees, Payments, and Royalties 

  

	 	5.1	Nanofluidics shall pay to IURTC a non-refundable, non-creditable license issue fee of [...***...]. The license fee of [...***...] shall be paid in three separate
installments, each payable on or before [...***...], [...***...], and [...***...]. 

  

	 	5.2	Within fifteen (15) days after the Effective Date, Nanofluidics shall pay to IURTC [...***...] as reimbursement for documented expenses incurred for preparing,
filing, and prosecuting patents and patent applications prior to the Effective Date. 

  

	 	5.3	Beginning on the first anniversary of the Effective Date until the Calendar Half of the First Commercial Sale that occurs in a primary country designated in the
Development Plan, Nanofluidics shall pay to IURTC a non-refundable, non-creditable license maintenance fee of [...***...] per Calendar Half. 

  

	 	5.4	Nanofluidics shall pay to IURTC a non-refundable minimum royalty during the Term of this Agreement. The first calendar period for which the minimum royalty will be paid
will begin on the first day of the Calendar Half following the Calendar Half in which the First Commercial Sale occurs. Payments under this Section 5.3 will be due in the following amounts for the corresponding periods:

  

			
	 Period
	  	Minimum Royalty
	 [...***...]
	  	[...***...]
	 [...***...] 
	  	[...***...]
	 [...***...] 
	  	[...***...]
	 [...***...] 
	  	[...***...]

  

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	 	5.4.1	Minimum royalties will be paid within thirty (30) days of the end of each respective Calendar Half. 

 

	 	5.4.2	Minimum royalties will be creditable against earned royalties for the Calendar Year in which they were or are to be paid. 

 

	 	5.5	Nanofluidics shall pay to IURTC an earned royalty of: 

  

	 	5.5.1	[...***...] of Net Sales of a sequencing service provided by Nanofluidics to a third party, excluding services promoted as a Diagnostic. 

 

	 	5.5.2	[...***...] of Net Sales of Nanofluidics to a third party, excluding Diagnostic products and services, and sequencing services under Section 5.5.1.

  

	 	5.5.3	[...***...] of Net Sales of a Diagnostic product or service sold by Nanofluidics to a third party. 

 

	 	5.5.4	In the event the [...***...] are offered in combination with other product(s), service(s) or component(s) for a single price, then the Net Sales of the [...***...] will
be calculated by multiplying the gross invoice price of the combination by the fraction A/(A+B), where A is the catalog price, during the royalty period in question, of the [...***...] sold separately, and B is the total catalog price, during the
royalty period in question, of the other product(s), service(s) or component(s) sold separately. If the [...***...] or the other product(s), service(s) or component(s) are not offered separately during that royalty period, then the gross invoice
price on the combination will be reasonably allocated between the [...***...] and other product(s), service(s) or component(s), based on their relative cost of goods determined by Generally Accepted Accounting Principles (GAAP).

  

	 	5.5.5	Earned royalties will be accumulated and reported each Calendar Half. Nanofluidics will pay to IURTC earned royalties accumulated during a Calendar Half within thirty
(30) days of the end of said Calendar Half. 

  

	 	5.6	In the event Nanofluidics is obligated to pay, pursuant to any bona fide, arm’s length contract or any judgment effective after the Effective Date of this
Agreement, any amounts to any third parties with respect to a Licensed Product, Nanofluidics may deduct [...***...] percent [...***...] of the amounts owing to such third party from the royalties owing to IURTC pursuant to Section 5.5 for
such Licensed Product. However, such royalties to be paid to IURTC pursuant to Section 5.5 shall not be so reduced to less than [...***...] of the amounts that would have otherwise be due IURTC with respect to such Licensed Product.

  

	 	5.7	 In the event any patent or any claim thereof included within the Patent Rights is disclaimed through reissue or reexamination, or held invalid or
unenforceable by a court 

  

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or other government agency of competent jurisdiction, and no other Valid Claim covers the Licensed Product in the Territory, then all obligation to pay royalties based on such patent or claim
will cease as of the date of such decision, provided that if such decision is vacated or overruled, royalty payments shall then be resumed. 

  

	 	5.8	Nanofluidics shall pay to IURTC [...***...] percent [...***...] of all Sublicensing Revenue. 

 

	 	5.8.1	Sublicensing Revenue is fully creditable against minimum royalties in the Calendar Year in which they were or are to be paid. 

 

	 	5.8.2	Sublicensing Revenue will be accumulated and reported on a Calendar Half basis. Nanofluidics will pay to IURTC sublicense fees accumulated during a Calendar Half within
thirty (30) days of the end of said Calendar Half. 

  

	 	5.9	Nanofluidics will pay IURTC the following milestone payments: 

  

	 	5.9.1	A one time payment of [...***...] due after annual Net Sales equals or exceeds [...***...]. 

 

	 	5.9.2	A one time payment of [...***...] upon regulatory approval of a Diagnostic Product. 

 

	 	5.10	No multiple royalty will be required to be paid because a Licensed Product or its manufacture, use, sale or importation is covered by more than one Valid Claim.

  

	6	Place and Method of Payment; Reports and Records; Audit; Interest 

  

	 	6.1	All dollar ($) amounts referred to in this Agreement are expressed in United States dollars. All payments to IURTC shall be made in United States dollars by check
or electronic transfer payable to “Indiana University Research and Technology Institute”. Any Sales revenues for Licensed Products in currency other than United States dollars shall be converted to United States dollars at the conversion
rate for the foreign currency as published in the Eastern edition of The Wall Street Journal as of the last business day in the United States of the applicable Calendar Half. 

 

	 	6.2	Checks shall be sent to: 

Indiana University Research and Technology Corporation 

2455 Reliable Parkway 

Chicago, IL 60686-2455 

The IURTC Tech No. [...***...] and purpose of payment must be included with the check. 

 

	 	6.3	Wire transfer payments should be sent to: 

[...***...] 

[...***...] 

[...***...] 

[...***...] 
  

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 The IURTC Tech No. [...***...] and purpose of the payment must be included with
the wire transfer information. Nanofluidics must add wire transfer fees to the payment. 
  

	 	6.4	Nanofluidics shall deliver to IURTC, within forty-five (45) days of the end of each Calendar Half in which earned royalties and/or sublicense fees are owed and
payable, a written report setting forth the calculation of the payments made to IURTC for that Calendar Half, including at least the following: 

  

	 	6.4.1	The number of Licensed Products sold and amount of Sales by country. 

  

	 	6.4.2	Gross receipts for Sales of Licensed Products including total amounts invoiced and received. 

 

	 	6.4.3	Deductions, as defined in Section 2.11, giving totals by each type. 

  

	 	6.4.4	Net Sales of Licensed Products by country. 

  

	 	6.4.5	Earned royalty amounts credited against minimum royalty payments or vice versa. 

 

	 	6.5	Nanofluidics shall maintain, and shall require its Sublicensees to maintain, complete and accurate books of account and records that would enable an independent auditor
to verify the amounts paid as royalties, fees and payments under this Agreement. Nanofluidics must also require its Sublicensees to file reports to Nanofluidics to enable Nanofluidics to comply with all record keeping and reporting obligations in
this Agreement. The books and records must be maintained for three years following the Calendar Half after submission of the reports required by this Article. Upon reasonable notice by IURTC, Nanofluidics must give IURTC (or auditors or inspectors
appointed by and representing IURTC) access to all books and records in Nanofluidics’ possession relating to Sales of Licensed Products by Nanofluidics and its Sublicensees to conduct, at IURTC’s expense, an audit or review of those books
and records. This access must be available at least once every six (6) months, during regular business hours, during the Term of the Agreement and for the three Calendar Years following the year in which termination or expiration occurs. Any
audit or review by or on behalf of IURTC shall not extend to books and records previously examined hereunder or to books and records relating to a period more than three years prior to the audit date. However, if the audit or review reports that
Nanofluidics has underpaid royalties by [...***...] or more for any Calendar Half, Nanofluidics shall reimburse IURTC for the costs and expenses of the accountants and auditors in connection with the review and audit. 

 

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	 	6.6	Any amounts not paid by Nanofluidics to IURTC when due shall accrue interest, from the due date until payment is made, at an annual rate equal to [...***...] (or the
maximum allowed by law, if less than the amount specified herein). 

  

	7	Confidentiality 

  

	 	7.1	Nanofluidics and IURTC will maintain in secrecy and not disclose to any third party any Confidential Information. Nanofluidics and IURTC will ensure that their
respective employees have access to the Confidential Information only on a need-to-know basis and are obligated by written agreement to keep the Parties’ confidentiality obligations under this Agreement. As used in this Section, IURTC is a
“Disclosing Party” of its Confidential Information and a “Receiving Party” of Nanofluidics’ Confidential Information, and Nanofluidics is a “Disclosing Party” of its Confidential Information and a “Receiving
Party” of IURTC’s Confidential Information. 

  

	 	7.2	The obligations of confidentiality specified in this Article will not extend to Confidential Information that: 

 

	 	7.2.1	Becomes part of the public domain through no fault of either Party; 

  

	 	7.2.2	Was known to the Recipient Party before disclosure by the Disclosing Party as established by written records in the Recipient Party’s possession;

  

	 	7.2.3	Comprises identical subject matter to that which had been originally and independently developed by the Recipient Party without knowledge or use of any Confidential
Information; or 

  

	 	7.2.4	Was disclosed to the Recipient Party by a third party having a right to make the disclosure. 

 

	 	7.3	Notwithstanding the other terms of this Article 7, Nanofluidics may, to the extent necessary, use Confidential Information to secure governmental approval to clinically
test or market a Licensed Product, to comply with a court order or governmental rule or regulation, or to show to a potential sublicensee or contractor subject to an appropriate confidentiality agreement. Nanofluidics may use and disclose
Confidential Information to the extent necessary to carry out its obligations and exercise its rights under this Agreement, and (without limiting the foregoing) may disclose this Agreement to its investors and prospective investors. Nanofluidics
will, in any such use, take all reasonably available steps to maintain confidentiality of the disclosed Information and to guard against any further disclosure. 

 

	 	7.4	IURTC also may disclose the existence of this Agreement and only to the extent of the grant in Article 3 to a third party that inquires whether a license to the
Intellectual Property is available. However, IURTC shall not disclose the name of Nanofluidics as the Licensee, unless Nanofluidics has already made such disclosure publicly or unless Nanofluidics agrees in writing that IURTC may disclose such
information. 

  

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	8	Representations and Warranties 

  

	 	8.1	IURTC represents and warrants that: 

  

	 	8.1.1	It is a corporation organized, existing, and in good standing under the laws of Indiana. 

 

	 	8.1.2	It has the authority to enter into this Agreement and that the person signing on its behalf has the authority to do so. 

 

	 	8.1.3	To the best of its knowledge, it is the owner (subject to any rights retained by the U.S. government by operation of law) of the Intellectual Property licensed in this
Agreement and that it has the authority to grant the licenses set forth herein. 

  

	 	8.1.4	To the best of its knowledge, as of the Effective Date of the Agreement, there are no threatened or pending actions, suits or claims against IURTC challenging
IURTC’s ownership or control of the Intellectual Property licensed in this Agreement. 

  

	 	8.1.5	To the best of its knowledge, all inventors named in patents within the Patent Rights have, unless indicated otherwise to the contrary, have an obligation to assign to
IURTC their right, title and interest in and to the patents describing and claiming their invention(s) and have already made such an assignment. 

  

	 	8.1.6	It has not previously granted and will not grant during the Term, any right, license or interest in or to the Intellectual Property, or any portion thereof,
inconsistent with the rights and licenses granted to Nanofluidics herein. 

  

	 	8.1.7	There are no threatened or pending actions, suits, claims or arbitration proceedings in any way relating to the validity or enforceability of U.S. Patent
No. 6,399,335. 

  

	 	8.1.8	It is not a party to any agreement or arrangement that would prevent it from performing its duties and fulfilling its obligations to Nanofluidics under this Agreement.

  

	 	8.2	Nanofluidics represents and warrants that: 

  

	 	8.2.1	It is a corporation duly organized, existing, and in good standing under the laws of Delaware. 

 

	 	8.2.2	The execution, delivery and performance of this Agreement have been authorized by all necessary corporate action on the part of Nanofluidics and that the person signing
the Agreement on behalf of Nanofluidics has the authority to do so. 

  

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	 	8.2.3	The making or performance of this Agreement would not violate any separate agreement it has with a third party. 

 

	 	8.2.4	It is not a party to any agreement or arrangement that would prevent it from performing its duties and fulfilling its obligations to IURTC under this Agreement.

  

	 	8.2.5	It has, or will obtain at the time specified in Article 12, the insurance coverage called for in Article 12. 

 

	 	8.2.6	It will obtain any additional licenses from any third party needed to perform and fulfill its duties and obligations under this Agreement, including, but not limited
to, the Development Plan. 

  

	 	8.2.7	There is no pending litigation and no threatened claims against it that could impair its ability or capacity to perform and fulfill its duties and obligations under
this Agreement, including, but not limited to, the Development Plan. 

  

	 	8.3	Nothing in this Agreement shall be construed as: 

  

	 	8.3.1	A warranty or representation by IURTC or IU as to the validity, scope, or efficacy of Intellectual Property. 

 

	 	8.3.2	A grant, by implication, estoppel, or otherwise, of any licenses or rights under patents or other intellectual property rights of IURTC or other persons, other than the
rights expressly granted above to Intellectual Property. 

  

	 	8.3.3	A grant of rights to either Party to use the name of the other in advertising, publicity, or otherwise, except as expressly authorized herein, without the written
permission of the other Party. 

  

	 	8.3.4	A grant of rights to Licensee to use the name of IU in advertising publicity, or otherwise without the written permission of IU. 

 

	 	8.4	 IURTC PROVIDES THE INTELLECTUAL PROPERTY “AS IS” AND MAKES NO REPRESENTATIONS AND EXTENDS NO WARRANTIES OF ANY KIND, EITHER EXPRESS OR
IMPLIED. THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS OF THE INTELLECTUAL PROPERTY OR LICENSED PRODUCTS DERIVED FROM OR INCLUDING IT FOR A PARTICULAR PURPOSE, OR THAT THE USE OF THE INTELLECTUAL PROPERTY OR ANY LICENSED
PRODUCT WILL NOT INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK OR OTHER RIGHTS, OR ANY OTHER EXPRESS OR IMPLIED WARRANTIES. IURTC MAKES NO REPRESENTATION OR WARRANTY WITH RESPECT TO THE PERFORMANCE OF THE INTELLECTUAL PROPERTY OR ANY LICENSED PRODUCT,
INCLUDING THEIR SAFETY, EFFECTIVENESS, OR COMMERCIAL VIABILITY. IURTC WILL NOT BE 

  

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LIABLE TO NANOFLUIDICS, OR ITS SUCCESSORS, ASSIGNS, CONTRACTORS, OR SUBLICENSEES, OR ANY THIRD PARTY REGARDING ANY CLAIM ARISING FROM OR RELATING TO NANOFLUIDICS’ USE OF THE INTELLECTUAL
PROPERTY, ANY LICENSED PRODUCT, OR FROM THE MANUFACTURE, USE, IMPORTATION OR SALE OF LICENSED PRODUCTS, OR FOR ANY CLAIM FOR LOSS OF PROFITS, LOSS OR INTERRUPTION OF BUSINESS, OR FOR INDIRECT, SPECIAL, EXEMPLARY, PUNITIVE, OR CONSEQUENTIAL DAMAGES
OF ANY KIND. 

  

	9	Application, Prosecution, and Maintenance of Patent Rights 

  

	 	9.1	IURTC shall control the preparation, filing, prosecution, issue and maintenance of patents within the Patent Rights. IURTC will select qualified outside patent counsel
reasonably acceptable to Nanofluidics and corresponding foreign associates to prepare, file, prosecute and maintain U.S. patents/applications and foreign counterparts within the Patent Rights. IURTC will consult with Nanofluidics regarding the
prosecution of patent applications including, without limitation, by providing Nanofluidics a reasonable opportunity, and sufficiently in advance, to review and comment on proposed submissions to any patent office, before the submission is filed and
will reasonably consider the advice of Nanofluidics with respect to patent prosecution. IURTC will keep Nanofluidics reasonably informed of the status of Patent Rights patents and applications by timely giving Nanofluidics copies of communications
relating to such Patent Rights that are received from any patent office or outside patent counsel of record or foreign associate. 

  

	 	9.2	During the Term of the Agreement, Nanofluidics will reimburse IURTC for all reasonable and documented costs and expenses incurred by IURTC in the preparation, filing,
prosecution, issue and maintenance of patents and applications within the Patent Rights within thirty (30) days of receipt from IURTC of copies of billing invoices for such costs and expenses; provided, however, that IURTC will have provided
Nanofluidics reasonable advance notice of such activities and the estimated costs expected to be incurred if those costs exceed those specified in the IURTC Outside Counsel Guidelines, and afforded Nanofluidics the opportunity to provide input
regarding such activities and estimated costs. 

  

	 	9.3	IURTC will diligently prosecute and maintain the applications and patents within the Patent Rights as long as Nanofluidics timely satisfies its reimbursement
obligations hereunder. IURTC will prepare, file and prosecute additional applications within the Patent Rights as Nanofluidics may reasonably request, in IURTC’s name at Nanofluidics’ sole expense. 

 

	 	9.4	 If Nanofluidics elects not to reimburse IURTC for any fees or expenditures relating to any Patent Rights, Nanofluidics shall give IURTC written notice
of such election at least ninety (90) days in advance of the date on which such expenditure is to be made or such fee is due to be paid. Upon IURTC’s receipt of such notice, the license to those patent applications or patents in the
Patent Rights granted to Nanofluidics under Sections 3.1 

  

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and 3.2 for which IURTC has not been reimbursed shall be free, at IURTC’s sole discretion and without any further obligation to Nanofluidics, to continue prosecution or maintenance, for
IURTC’s sole use and benefit or to abandon the patent applications. 

  

	 	9.5	Nanofluidics’ failure to reimburse IURTC for patent expenses incurred in connection with filing, prosecution, issue, and maintenance of patent applications or
patents in the Patent Rights without notification pursuant to Section 9.4 shall be considered a material breach subject to the termination provisions of this Agreement. 

 

	10	Infringement, Enforcement, and Defense 

  

	 	10.1	The Parties shall give prompt written notice (the “Infringement Notice”) to each other of (a) any known or suspected infringement of the Intellectual
Property by a third party, and (b) any claim that a Licensed Product infringes the intellectual property rights of a third party that dominate the inventions claimed in the Patent Rights patent. 

 

	 	10.2	In the event either party becomes aware of a suspected infringement of the Intellectual Property that is of substantial commercial significance in the Field by a third
party, Nanofluidics at its sole expense may attempt to abate such suspected infringement. Nanofluidics shall have the right, but shall not be obligated, to initiate and prosecute an infringement action at its own expense, in its own name and
entirely under its own direction and control. In such event, Nanofluidics shall also be entitled to all recoveries in any such action or proceeding. Nanofluidics shall consult with IURTC prior to and in conjunction with all significant issues, shall
keep IURTC informed of all proceedings, and shall provide copies to IURTC of all pleadings and other papers related to such actions. IURTC will provide reasonable assistance to Nanofluidics in prosecuting any such actions, and shall lend its name to
such actions or proceedings if requested by Nanofluidics or required by law. IURTC shall have the right to participate and be represented in any such actions or proceedings by its own counsel at its own expense. 

 

	 	10.3	Nanofluidics at its sole expense shall defend third party claims for (a) patent or intellectual property infringement and injury, and (b) death, bodily
injury, property damage, damage to business, or product liability brought against Nanofluidics and IURTC arising from or relating to Intellectual Property or a Licensed Product. Nanofluidics will have the right to conduct the defense of such actions
through outside counsel of its choice who are reasonably acceptable to IURTC. Nanofluidics shall consult with IURTC prior to and in conjunction with all significant issues, shall keep IURTC informed of all proceedings, and shall provide copies to
IURTC of all pleadings, legal analyses, and other papers related to such actions. IURTC will provide reasonable assistance to Nanofluidics in defending any such actions. In such event, Nanofluidics shall also be entitled to all recoveries in any
such actions. 

  

	 	10.4	Notwithstanding anything herein to the contrary and absent IURTC’s prior written consent, Nanofluidics shall not settle or compromise any claim or action in a
manner that imposes restrictions or obligations on IURTC, requires any financial payment by IURTC, or grants rights or concessions to a third party to Intellectual Property or a Licensed Product. 

 

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	 	10.5	Nanofluidics will be entitled to offset against royalties and fees due under Sections 5.4 and 5.5 fifty percent (50%) of its reasonable and necessary
attorney’s fees and expenses incurred in abating, bringing, or defending against third party claims of infringement or unfair trade practices against Intellectual Property, or in bringing or defending an action against a third party under this
Article, provided, however, that in no event shall the royalty and fee payments due to IURTC be reduced by more than fifty percent (50%) in any Calendar Year. 

 

	 	10.6	If Nanofluidics fails or declines to take any action under Section 10.2 within a reasonable time after learning of third party infringement or unfair trade
practices, IURTC shall have the right, but not the obligation, to take appropriate actions against any such third party at its own expense. If Nanofluidics fails to defend a claim or action under Section 10.3 within twenty (20) days of
learning of the same, IURTC may assume the defense at its own expense for the account of and at the risk of Nanofluidics and any resulting liability will be deemed conclusively to be a liability of Nanofluidics. 

 

	11	Indemnification. 

  

	 	11.1	Nanofluidics shall indemnify, defend, and hold harmless IURTC, its Board of Directors, and employees, IU’s faculty, staff, employees, students, and IURTC and
IU’s successors, assigns, and agents (collectively, “IURTC Indemnitees”) from and against any and all judgments, liabilities, losses, damages, actions, claims, or expenses (including all attorney’s fees and costs incurred by
IURTC Indemnitees) arising out of, relating to, or incidental to (a) the use of any Intellectual Property in the design, development, production, manufacture, sale or offer for sale, use, importation, lease, marketing or promotion of any
Licensed Product by Nanofluidics or its contractors, employees, Sublicensees, assigns, or agents, (b) injury or death to any person, damage to property, or any injury to business, including, but not limited to, business interruption or damage
to reputation, arising out of, relating to, or incidental to the use of Intellectual Property or a Licensed Product, (c) any third party claim that any use or licensing of Intellectual Property or development of Licensed Products by
Nanofluidics violates or infringes a third party’s intellectual property rights. 

  

	 	11.2	Nanofluidics’ indemnification obligations shall not apply to any liability, damage, loss or expense to the extent that it is attributable to (a) the willful
misconduct of the IURTC Indemnitees, or (b) any breach of IURTC’s warranties or obligations under this Agreement. 

  

	12	Insurance 

  

	 	12.1	Nanofluidics will at all times comply, through insurance or self-insurance, with all statutory workers’ compensation and employers’ liability requirements
covering all employees with respect to activities undertaken in performance of this Agreement. This requirement may be met by insurance or self-insurance coverage provided to Nanofluidics by a Sublicensee. 

 

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	 	12.2	In addition to the foregoing, Nanofluidics will at appropriate times obtain and maintain occurrence-based Broad Form Comprehensive General Liability (BFCGL) insurance
with a reputable and financially secure insurance carrier(s). The BFCGL insurance will include, among all other coverages standing in such BFCGL policies, coverage for product liability and contractual liability. 

 

	 	12.3	The insurance policy shall identify IURTC as an additional insured and shall provide to Nanofluidics, its Affiliates, for the express benefit and protection of IURTC
Indemnitees and in order to satisfy Nanofluidics’ indemnity obligations in Article 11, minimum annual limits of [...***...]. 

  

	 	12.4	Insurance policies purchased to comply with this Article shall be kept in force for two years after the last sale the last Licensed Product is sold.

  

	 	12.5	Nanofluidics will provide IURTC with a certificate of insurance and notices of subsequent renewals. The certificates and policies must provide that Nanofluidics’
carrier will notify IURTC in writing at least thirty (30) days prior to cancellation or material change in coverage. 

  

	 	12.6	The specified minimum coverages do not constitute a limitation on Nanofluidics’ obligation to indemnify IURTC under this Agreement. 

 

	13	Termination 

  

	 	13.1	Nanofluidics may terminate this Agreement with or without cause on ninety (90) days advance written notice to IURTC. The license rights granted in Article 3 shall
terminate at the end of the 90-day period. 

  

	 	13.2	IURTC may terminate this Agreement as provided in Article 4.5 for Nanofluidics’ failure to [...***...]. 

 

	 	13.3	Subject to Section 13.3.8, IURTC may terminate this Agreement on sixty (60) days advance written notice to Nanofluidics upon Nanofluidics’ material
breach of the Agreement. The termination becomes effective at the end of the sixty-day period unless Nanofluidics has fully cured the breach within that time. A material breach includes, but is not limited to, material failure of one or more of the
following: 

  

	 	13.3.1	Failure to pay timely any fee, royalty, or other payment required under this Agreement. 

 

	 	13.3.2	Failure to keep accurate and complete books and records, failure to require that Sublicensees keep accurate books and records, and failure to allow reasonable audit and
inspection, all as required by Article 6. 

  

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	 	13.3.3	Failure to comply with the confidentiality requirements of Article 7. 

  

	 	13.3.4	Failure to obtain, maintain, and/or timely report levels of insurance, as required in Article 12. 

 

	 	13.3.5	Breach or falsity of any of Nanofluidics’ representations or warranties made in this Agreement. 

 

	 	13.3.6	Failure to indemnify in accordance with Article 11 of this Agreement. 

  

	 	13.3.7	Failure to include all necessary and required terms in all sublicenses, or inclusion of any prohibited terms. 

 

	 	13.3.8	Notwithstanding the foregoing, if Nanofluidics disputes that it is in breach concerning the amount of payment to be made hereunder (for purpose of clarity, the breach
concerning the amount of payment to be made as used in this Section 13.3.8 does not include the situation in which Nanofluidics refuses to make any payment under this Agreement), IURTC shall not have the right to terminate this Agreement unless
it has been determined in an arbitration proceeding that this Agreement was breached, and Nanofluidics fails to cure such breach within sixty (60) days after such determination. The Parties agree that the arbitration proceeding shall be
conducted by a sole arbitrator selected by the Parties in accordance with the licensing rules of the American Arbitration Association, and be completed within thirty (30) days. During the arbitration proceeding, each party shall submit a
proposal setting forth the terms of a proposed resolution. The arbitrator is empowered only to select one of the proposed resolutions in whole. The arbitrator may not modify the terms of this Agreement. The award rendered thereon by the arbitrator
shall be final and binding on the Parties thereto. In the event that Nanofluidics is found in such arbitration proceeding to be in breach for failure to fulfill its payment obligations under this Agreement, Nanofluidics shall cure such breach by
paying the damage owed to IURTC with interest at the rate set forth in Section 6.6, and by reimbursing IURTC the attorney’s fees that IURTC incurred in the arbitration proceeding. 

 

	 	13.4	If Nanofluidics enters bankruptcy or receivership, voluntarily or involuntarily, all obligations of IURTC and all rights (but not obligations) of Nanofluidics terminate
immediately without the need for either IURTC or Nanofluidics to take any action. 

  

	 	13.5	Upon the date of termination of this Agreement for any reason, Nanofluidics shall return, and shall cause all Sublicensees, if sublicensing agreements are also
terminated, to return to IURTC all Confidential Information of IURTC (as defined in Article 7) received during the Term of this Agreement. 

  

	 	13.6	As of the date of termination of this Agreement by either Party for any reason pursuant to the terms herein, all license rights granted to Nanofluidics under Article 3
shall terminate. Nanofluidics’ obligations to pay fees, royalties, or other payments and patent expenses (Article 10) accruing prior to termination shall survive termination. 

 

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	14	Use of Names: Neither Party may use the name of the other for any commercial, advertisement, or promotional purpose without the prior written consent of the
other. Nanofluidics may not use the name of IU for any commercial, advertisement, or promotional purpose without the prior written consent of IU. 

  

	15	Assignment or Pledge of the Agreement: This Agreement, in whole or in part, shall not be assigned by either Party to any third party without the written consent
of the non-assigning Party. However, Nanofluidics may assign the entire Agreement, without IURTC’s consent, to a third party that acquires substantially all of Nanofluidics’ business or assets through merger, sale, acquisition, or other
similar transaction, provided that the successor agrees in writing (with a copy of such assent to IURTC within ten (10) days of the effective date of the transaction) to assume all obligations and liabilities of Nanofluidics to IURTC. The
rights granted in this Agreement may not be pledged or hypothecated in any way by Nanofluidics or any Sublicensee to secure any purchase, lease, or loan. 

  

	16	Notice: Any required or permissive notice under this Agreement will be sufficient if in writing and delivered personally, by recognized national overnight
courier, or by registered or certified mail, postage prepaid and return receipt requested, to the address below and will be deemed to have been given as of the date shown on the receipt if by certified or registered mail, or the day following
dispatch if by overnight courier. 

 If to IURTC: 

Vice President of Technology Transfer 

Attn: IURTC Tech No. 0009 

Indiana University Research and Technology Corporation 

351 W.
10th Street 

Indianapolis, IN 46202 
 If
to Nanofluidics: 
 [...***...] 

Nanofluidics, Inc. 

1505 Adams Drive 

Menlo Park, CA 94025 
  

	Cc:	[...***...] 

 Wilson Sonsini
Goodrich and Rosati 
 650 Page Mill Road 

Palo Alto, CA 94304 
  

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	17	General Provisions 

  

	 	17.1	This Agreement shall be governed by and interpreted according to the laws of the State of Indiana. 

 

	 	17.2	No waiver of any breach of this Agreement shall constitute a waiver of any other breach of the same or any other provision of this Agreement, and no waiver shall be
effective unless made in writing by the Party against whom the waiver is sought to be asserted. 

  

	 	17.3	The Parties acknowledge that they have read this Agreement in its entirety and agree that this instrument comprises the entire agreement, contract, and understanding of
the Parties relating to the subject matter of the Agreement. 

  

	 	17.4	This Agreement cannot be changed, modified or amended except by a written instrument subscribed by authorized representatives of the respective Parties.

  

	 	17.5	Neither Party is an agent or contractor of the other as a result of any transaction under or related to this Agreement. Neither Party may in any way pledge the other
Party’s credit or incur any obligation on behalf of the other Party. 

  

	 	17.6	IURTC shall not be liable to Nanofluidics for any special, consequential, incidental, or indirect damages arising out of or relating to this Agreement, however caused,
under any theory of liability. 

  

	 	17.7	The provisions of this Agreement are severable in that if any provision in the Agreement is finally determined by a court of competent jurisdiction to be invalid or
unenforceable, the remaining provisions of the Agreement shall remain in full force and effect. 

  

	 	17.8	If the performance of any obligation under this Agreement is prevented or impaired by acts of war, riot, acts or defaults of common carriers, or governmental laws or
regulations, a Party will be excused from performance so long as such cause continues to prevent or impair that Party’s performance. The Party claiming such force majeure excuse must promptly notify the other Party of the existence of the cause
and must at all times use diligent efforts to resume and complete performance. This Section 18.8 will not excuse Nanofluidics’ obligation to pay fees, payments and royalties under Article 5 of the Agreement. 

 

	 	17.9	IURTC has no responsibility and assumes no liability for product design, development, pre- or post-market regulatory approval, servicing, distribution, or marketing of
any Licensed Product, or for any decisions made or strategies devised relating to any Licensed Product. 

  

	 	17.10	 Nanofluidics agrees, that in the event an IU faculty or staff member serves Nanofluidics or any sublicensee in the capacity of consultant, officer,
employee, board member, advisor, or other designation, pursuant to contract or otherwise, such IU faculty or staff member shall serve in his or her individual capacity, as an independent contractor, and

  

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not as an agent or representative of IURTC or IU, that IURTC or IU exercises no authority or control over such faculty or staff member while acting in such capacity, that IURTC or IU receives no
benefit from such activity, and that IURTC or IU assume no liability or obligation in connection with any such work or service undertaken by such faculty or staff member. Nanofluidics further agrees that any breach, error, or omission by an IU
faculty or staff member acting in the capacity set forth above in this paragraph shall not be imputed or otherwise attributed to IURTC or IU, and shall not constitute a breach of this Agreement by IURTC. 

 

	 	17.11	All representations, warranties, covenants, and agreements made herein that, by their express terms or by implication, are to be performed after the execution or
termination of this Agreement, or are prospective in nature, shall survive such execution and/or termination, as the case may be. This shall include, but not be limited to, the provisions in Articles 5, 6, 7, 8, 11, 12 and 14.

  

	 	17.12	Each Party shall, at the reasonable request of the other, execute and deliver to the other such instruments and/or documents and shall take such actions as may be
required to more effectively carry out the terms of this Agreement. 

  

	 	17.13	This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which when taken together shall be deemed one instrument.

  

	 	17.14	This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which when taken together shall be deemed one instrument.

 Witness: The Parties have caused this Agreement to be executed in duplicate by their duly qualified representatives.

  

					
	Nanofluidics, Inc.	 		  	IURTC
			
	 /s/ Stephen Turner, Ph.D.
	 		  	 /s/ Jack H. Pincus, Ph.D.

	Signature	 		  	Signature
			
	 Stephen Turner, Ph.D.
	 		  	 Jack H. Pincus, Ph.D.

	Name	 		  	Name
			
		 		  	 Vice President of Technology Transfer

Indiana University Research & Technology

	 CTO
	 		  	 Corporation

	Title	 		  	Title
			
	 6/14/05
	 		  	 6/15/05

	Date	 		  	Date

  

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22Employment Agreement - Hugh Martin

 Exhibit 10.17 

PACIFIC BIOSCIENCES OF CALIFORNIA, INC. 

EMPLOYMENT AGREEMENT 

This Employment Agreement (the “Agreement”) is entered into as of September 16, 2010 (the
“Effective Date”) by and between Pacific Biosciences of California, Inc. (the “Company”) and Hugh Martin (“Executive”). 

1.        Duties and Scope of Employment. 

(a)      Position and Duties. As of the Effective Date, Executive will continue to
serve as the Company’s Chief Executive Officer and President. Executive will render such business and professional services in the performance of his duties, consistent with Executive’s position within the Company, as shall reasonably be
assigned to him by the Company’s Board of Directors (the “Board”). The Board may modify Executive’s job title and duties as it deems necessary and appropriate in light of the Company’s needs and interests from time to
time. The period of Executive’s employment under this Agreement is referred to herein as the “Employment Term.” 

(b)      Board Membership. During the Employment Term, Executive will serve as a
member and Chairman of the Board, subject to any required Board and/or stockholder approval. Upon termination of the Employment Term, Executive will resign from the Board. 

(c)      Obligations. During the Employment Term, Executive will perform his duties
faithfully and to the best of his ability and will devote his full business efforts and time to the Company. For the duration of the Employment Term, Executive agrees not to actively engage in any other employment, occupation or consulting activity
for any direct or indirect remuneration without the prior approval of the Board. 

2.        At-Will Employment. The parties agree that Executive’s
employment with the Company will be “at-will” employment and may be terminated at any time with or without cause or notice. Executive understands and agrees that neither his job performance nor commendations, bonuses or the like from the
Company give rise to or in any way serve as the basis for modification, amendment, or extension, by implication or otherwise, of the at-will nature of his employment with the Company. As described in this Agreement, however, Executive may be
entitled to severance and other benefits depending upon the circumstances of Executive’s termination of employment with the Company. 

3.        Term of Agreement. Subject to Section 2 above, this
Agreement will have an initial term of three (3) years, commencing on the Effective Date. On the third anniversary of the Effective Date, this Agreement will automatically renew for additional one (1) year terms unless either party
provides the other party with written notice of non-renewal at least sixty (60) days prior to the date of automatic renewal. If Executive becomes entitled to benefits under Section 8 during the term of this Agreement, this Agreement will
not terminate until all of the obligations under this Agreement have been satisfied. 

4.        Compensation. 

 (a)      Base Salary. During the
Employment Term, the Company will pay Executive as compensation for his services a base salary (the “Base Salary”) at the annualized rate of three hundred thousand dollars ($300,000). The Base Salary will be paid in installments in
accordance with the Company’s normal payroll practices for senior executives and be subject to the usual, required withholding. Executive’s salary will be subject to review and adjustments will be made based upon the Company’s normal
performance review practices, though the Company does not expect to review or otherwise adjust the Base Salary prior to 2012. 

(b)      Bonus. Executive will be eligible to participate in any bonus plans or
programs maintained from time to time by the Company on such terms and conditions as determined by the Board. Any bonus, or any portion thereof, will be paid as soon as practicable after the Board determines that the bonus has been earned, but in no
event will the bonus be paid after the later of (i) the fifteenth (15th) day of the third (3rd) month following the close of the Company’s fiscal year in which the bonus is earned or (ii) March 15 following the calendar year
in which the bonus is earned. 
 (c)      Stock Options. 

(i)      First Option. On August 12, 2010 the Board granted Executive a stock
option to purchase 500,000 shares of the Company’s common stock (“Shares”) at an exercise price per Share equal to the fair market value of a Share on the date of grant (the “First Option”). The First Option
will vest as to twenty percent (20%) of the Shares subject to the First Option on the one (1) year anniversary of August 12, 2010, and as to
1/60th of the Shares subject to the First Option monthly
thereafter, so that the First Option will be fully vested and exercisable five (5) years from August 12, 2010, subject to Executive continuing to provide services to the Company through the relevant vesting dates. 

(ii)      Second Option. Effective on the date of the Company’s initial public
offering of its Shares (the “IPO”), subject to Executive’s continued employment through the IPO, Executive will be granted a stock option to purchase 300,000 Shares at an exercise price per Share equal to the fair market
value of a Share on the date of grant which shall be the initial price to the public as set forth in the final prospectus included within the registration statement on Form S-1 filed with the Securities and Exchange Commission for the IPO (the
“Second Option”). The Second Option will vest upon achievement of certain performance targets in 2011 and 2012, as established by the Board, based on the Company’s operating plan for fiscal years 2011 and 2012. Executive will
not be eligible to earn any portion of the Second Option until after the Company completes its determination of the results for fiscal 2011, as approved by the Board. Executive will be eligible to earn up to fifty percent (50%) of the Shares
subject to the Second Option based on the Company’s performance in fiscal 2011 and up to fifty percent (50%) of the Shares subject to the Second Option based on the Company’s performance in fiscal 2012. 

(iii)      The First Option is subject to the terms and conditions of the Company’s
2005 Equity Incentive Plan and stock option agreements by and between Executive and the Company. The Second Option will be subject to the terms and conditions of the Company’s 2010 Equity Incentive Plan and stock option agreements by and
between Executive and the Company. 
  

 -2- 

 (d)      Equity Awards. Executive will
be eligible to receive awards of stock options, restricted stock or other equity awards covering Shares pursuant to any plans or arrangements the Company may have in effect from time to time, including but not limited to any focal grants. The Board
or its committee will determine in its discretion whether Executive will be granted any such equity awards and the terms of any such award in accordance with the terms of any applicable plan or arrangement that may be in effect from time to time.

 5.        Employee Benefits.  During the Employment
Term, Executive will be entitled to participate in the employee benefit plans currently and hereafter maintained by the Company of general applicability to other senior executives of the Company, as in effect from time to time. The Company reserves
the right to cancel or change the benefit plans and programs it offers to its employees at any time. 

6.        Vacation.  Executive will be entitled to paid vacation
in accordance with the Company’s vacation policy for senior executive officers, with the timing and duration of specific vacations mutually and reasonably agreed to by the parties hereto. Upon Executive’s termination of employment,
Executive will be entitled to receive Executive’s accrued but unpaid vacation through the date of Executive’s termination. 

7.      Expenses.  The Company will reimburse Executive for reasonable
travel, entertainment or other expenses incurred by Executive in the furtherance of or in connection with the performance of Executive’s duties hereunder, in accordance with the Company’s expense reimbursement policy as in effect from time
to time. 
 8.      Termination of Employment.  In the event
Executive’s employment with the Company terminates for any reason, Executive will be entitled to any (a) unpaid Base Salary accrued up to the effective date of termination; (b) pay for accrued but unused vacation; (c) benefits or
compensation as provided under the terms of any employee benefit and compensation agreements or plans applicable to Executive; and (d) unreimbursed business expenses required to be reimbursed to Executive. 

9.      Severance. 

(a)      Termination (other than for Cause, Death or Disability) or Resignation for
Good Reason. If (i) the Company terminates Executive’s employment with the Company other than for (x) Cause, (y) death or (z) Disability, or (ii) Executive resigns from his employment with the Company for Good
Reason, then, subject to Section 9(b) below, Executive will be entitled to: 

(i)    A lump sum payment equal to six (6) months of Executive’s Base Salary (unless such
termination occurs as a result of clause (ii) of the definition of “Good Reason” under Section 13(e) below, in which case the amount will be equal to six (6) months of Executive’s Base Salary as in effect immediately
prior to such Base Salary reduction), less applicable withholding taxes, payable within thirty (30) days following Executive’s termination of employment; 

 

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 (ii)      the immediate vesting of each of
Executive’s then-outstanding stock options and restricted stock or other equity awards as to the number of shares subject to each such equity award that otherwise would have vested had he remained an employee of the Company through the six
(6) month anniversary of the date of Executive’s termination of employment; and 

(iii)      if Executive elects continuation coverage pursuant to the Consolidated Omnibus
Budget Reconciliation Act of 1985, as amended (“COBRA”) for Executive and Executive’s eligible dependents (as applicable), within the time period prescribed pursuant to COBRA, the Company will reimburse Executive for, or pay
directly on Executive’s behalf, the COBRA premiums for such coverage (at the coverage levels in effect immediately prior to Executive’s termination of employment) until the earlier of (A) a period of six (6) months from the last
date of employment of the Executive with the Company, or (B) the date upon which Executive and/or Executive’s eligible dependents becomes covered under similar plans. 

(b)      Termination for Cause, Death or Disability; Resignation without Good
Reason. If Executive’s employment with the Company terminates voluntarily by Executive (other than for Good Reason), terminates as a result of Executive’s death or Disability, or is terminated for Cause by the Company, then
(i) all vesting will terminate immediately with respect to Executive’s then-outstanding equity awards, (ii) all payments of compensation by the Company to Executive hereunder will terminate immediately (except as to amounts already
earned), and (iii) Executive will only be eligible for severance benefits in accordance with the Company’s established policies, if any, as then in effect. 

10.        Non-Duplication of Benefits.  In the event that
Executive is entitled to benefits pursuant to the Change in Control Severance Agreement entered into between Executive and the Company of even date herewith, the payments and benefits set forth therein are intended to be and are exclusive and in
lieu of any payments or benefits set forth under Section 8 of this Agreement and, in such case, Executive will be entitled to no payments or benefits under Section 8 of this Agreement. 

11.        Conditions to Receipt of Severance. 

(a)      Release of Claims Agreement.    The receipt of any
severance or benefits pursuant to this Agreement is subject to Executive signing and not revoking a separation agreement and release of claims in a form reasonably acceptable to the Company (the “Release”), which must become
effective and irrevocable no later than the sixtieth
(60th) day following the termination of employment
(the “Release Deadline”). If the Release does not become effective and irrevocable by the Release Deadline, Executive will forfeit any rights to severance payments or benefits under this Agreement. No severance payments and
benefits under this Agreement will be paid or provided until the Release becomes effective and irrevocable, and any such severance payments and benefits otherwise payable between the date of Executive’s termination of employment and the date
the Release becomes effective and irrevocable will be paid on the date the Release becomes effective and irrevocable. 

(b)    Confidential Information and Invention Assignment
Agreements.  Executive’s receipt of any payments or benefits under Section 8 will be subject to Executive continuing to 

 

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comply with the terms of any confidential information and invention assignment agreement executed by Executive in favor of the Company and the provisions of this Agreement. 

(c)      Section 409A. 

(i)      Notwithstanding anything to the contrary in this Agreement, no severance pay or
benefits to be paid or provided to Executive, if any, pursuant to this Agreement that, when considered together with any other severance payments or separation benefits, are considered deferred compensation under Internal Revenue Code
Section 409A (together, the “Deferred Payments”) will be payable until Executive has a “separation from service” within the meaning of Section 409A (“Section 409A”) of the Internal Revenue Code
of 1986, as amended (the “Code”). Similarly, no severance payable to Executive, if any, pursuant to this Agreement that otherwise would be exempt from Section 409A pursuant to Treasury Regulation Section 1.409A-1(b)(9)
will be payable until Executive has a “separation from service” within the meaning of Section 409A. 

(ii)      Any severance payments or benefits under this Agreement that would be considered
Deferred Payments will be paid on, or, in the case of installments, will not commence until, the sixtieth
(60th) day following Executive’s separation from
service, or, if later, such time as required by Section 11(c)(iii). Except as required by Section 11(c)(iii), any installment payments that would have been made to Executive during the sixty (60) day period immediately following
Executive’s separation from service but for the preceding sentence will be paid to Executive on the sixtieth
(60th) day following Executive’s separation from
service and the remaining payments will be made as provided in this Agreement. 

(iii)      Further, if Executive is a “specified employee” within the meaning of
Section 409A at the time of Executive’s separation from service (other than due to death), any Deferred Payments that otherwise are payable within the first six (6) months following Executive’s separation from service will become
payable on the first payroll date that occurs on or after the date six (6) months and one (1) day following the date of Executive’s separation from service. All subsequent Deferred Payments, if any, will be payable in accordance with
the payment schedule applicable to each payment or benefit. Notwithstanding anything herein to the contrary, in the event of Executive’s death following Executive’s separation from service but prior to the six (6) month anniversary of
Executive’s separation from service (or any later delay date), then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of Executive’s death and all
other Deferred Payments will be payable in accordance with the payment schedule applicable to each payment or benefit. Each payment and benefit payable under the Agreement is intended to constitute a separate payment for purposes of
Section 1.409A-2(b)(2) of the Treasury Regulations. 
 (iv)      Any amount
paid under this Agreement that satisfies the requirements of the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations will not constitute Deferred Payments for purposes of clause (i) above.
Any amount paid under this Agreement that qualifies as a payment made as a result of an involuntary separation from service pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that does not exceed the
Section
  

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409A Limit (as defined below) will not constitute Deferred Payments for purposes of clause (i) above. 

(v)      The foregoing provisions are intended to comply with, or be exempt from, the
requirements of Section 409A so that none of the severance payments and benefits to be provided under the Agreement will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so
comply or be exempt. Executive and the Company agree to work together in good faith to consider amendments to the Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax
or income recognition prior to actual payment to Executive under Section 409A. In no event will the Company reimburse Executive for any taxes that may be imposed on Executive as result of Section 409A. 

(d)      No Duty to Mitigate. Executive will not be required to mitigate the amount
of any payment contemplated by this Agreement, nor will any such payment be reduced by any earnings that Executive may receive from any other source. 

12.      Limitation on Payments. In the event that the severance and other benefits
provided for in this Agreement or otherwise payable to Executive (i) constitute “parachute payments” within the meaning of Section 280G of the Code and (ii) but for this Section 12, would be subject to the excise tax
imposed by Section 4999 of the Code, then Executive’s severance benefits under Section 8 will be either: 

(a)      delivered in full, or 

(b)      delivered as to such lesser extent which would result in no portion of such
severance benefits being subject to excise tax under Section 4999 of the Code, 
 whichever of the foregoing amounts,
taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999, results in the receipt by Executive on an after-tax basis, of the greatest amount of severance benefits, notwithstanding that
all or some portion of such severance benefits may be taxable under Section 4999 of the Code. If a reduction in severance and other benefits constituting “parachute payments” is necessary so that benefits are delivered to a lesser
extent, reduction will occur in the following order: (i) reduction of cash payments; (ii) cancellation of awards granted “contingent on a change in ownership or control” (within the meaning of Code Section 280G),
(iii) cancellation of accelerated vesting of equity awards; (iv) reduction of employee benefits. In the event that acceleration of vesting of equity award compensation is to be reduced, such acceleration of vesting will be cancelled in the
reverse order of the date of grant of Executive’s equity awards. 
 Unless the Company and Executive
otherwise agree in writing, any determination required under this Section 12 will be made in writing by the Company’s independent public accountants immediately prior to the Change in Control (the “Accountants”), whose
determination will be conclusive and binding upon Executive and the Company for all purposes. For purposes of making the calculations required by this Section 12, the Accountants may make reasonable assumptions and approximations concerning
applicable taxes and may rely on reasonable, good faith 
  

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interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and Executive will furnish to the Accountants such information and documents as the Accountants may
reasonably request in order to make a determination under this Section. The Company will bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 12. 

13.        Definition of Terms.  The following terms referred to
in this Agreement will have the following meanings: 

  (a)      Cause. “Cause” means (i) conviction of
any felony; (ii) conviction of any crime involving moral turpitude or dishonesty that causes, or is likely to cause, material harm to the Company; (iii) participation in a fraud or willful act of dishonesty against the Company that causes,
or is likely to cause, material harm to the Company; (iv) intentional and material damage to the Company’s property; or (v) material breach of the Company’s Proprietary Information and Inventions Agreement. 

  (b)      Change in Control. “Change in Control” means
the occurrence of any of the following: 
 (i)      A change in the ownership of
the Company which occurs on the date that any one person, or more than one person acting as a group (“Person”), acquires ownership of the stock of the Company that, together with the stock held by such Person, constitutes more than
50% of the total voting power of the stock of the Company; provided, however, that for purposes of this subsection (i), the acquisition of additional stock by any one Person, who is considered to own more than 50% of the total voting power of the
stock of the Company will not be considered a Change in Control; or 

(ii)      A change in the effective control of the Company which occurs on the date that a
majority of members of the Board (each, a “Director”) is replaced during any twelve (12) month period by Directors whose appointment or election is not endorsed by a majority of the members of the Board prior to the date of the
appointment or election. For purposes of this subsection (ii), if any Person is considered to be in effective control of the Company, the acquisition of additional control of the Company by the same Person will not be considered a Change in Control;
or 
 (iii)      A change in the ownership of a substantial portion of the
Company’s assets which occurs on the date that any Person acquires (or has acquired during the twelve (12) month period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total
gross fair market value equal to or more than 50% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; provided, however, that for purposes of this subsection (iii), the
following will not constitute a change in the ownership of a substantial portion of the Company’s assets: (A) a transfer to an entity that is controlled by the Company’s stockholders immediately after the transfer, or (B) a
transfer of assets by the Company to: (1) a stockholder of the Company (immediately before the asset transfer) in exchange for or with respect to the Company’s stock, (2) an entity, 50% or more of the total value or voting power of
which is owned, directly or indirectly, by the Company, (3) a 
  

 -7- 

 
Person, that owns, directly or indirectly, 50% or more of the total value or voting power of all the outstanding stock of the Company, or (4) an entity, at least 50% of the total value or
voting power of which is owned, directly or indirectly, by a Person described in this subsection (iii)(B)(3). For purposes of this subsection (iii), gross fair market value means the value of the assets of the Company, or the value of the assets
being disposed of, determined without regard to any liabilities associated with such assets. 
 For purposes of
this definition of Change in Control, persons will be considered to be acting as a group if they are owners of a corporation that enters into a merger, consolidation, purchase or acquisition of stock, or similar business transaction with the
Company. 
 Notwithstanding the foregoing, a transaction will not be deemed a Change in Control unless the
transaction qualifies as a change in control event within the meaning of Code Section 409A, as it has been and may be amended from time to time, and any proposed or final Treasury Regulations and Internal Revenue Service guidance that has been
promulgated or may be promulgated thereunder from time to time. 
 Further and for the avoidance of doubt, a
transaction will not constitute a Change in Control if: (i) its sole purpose is to change the state of the Company’s incorporation, or (ii) its sole purpose is to create a holding company that will be owned in substantially the same
proportions by the persons who held the Company’s securities immediately before such transaction. 

(c)      Code. For purposes of this Agreement, “Code” is defined
as the Internal Revenue Code of 1986, as amended. 

(d)      Disability.    “Disability” means
Executive is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than
twelve (12) months. 
 (e)      Good
Reason.      “Good Reason” means Executive’s termination of employment within thirty (30) days following the expiration of any cure period (discussed below) following the occurrence of one
or more of the following, without Executive’s express written consent: 
 (i)    a
material reduction of Executive’s duties, authority, or responsibilities, relative to Employee’s duties, authority, or responsibilities as in effect immediately prior to such reduction, or any change which results in Executive ceasing to
serve as the Chief Executive Officer of the Company, provided that, for the avoidance of doubt, Executive ceasing to serve as President of the Company or Chairman of the Board shall not constitute “Good Reason”; 

(ii)      a material reduction by the Company in Executive’s annualized base pay as
in effect immediately prior to such reduction (in other words, a reduction of more than ten percent (10%) of Executive’s annualized base compensation in any one year, other than a reduction applicable to executives generally that does not
adversely affect Executive to a greater extent than other similarly situated executives); 
  

 -8- 

 (iii)    the relocation of Executive’s principal
place of performing his or her duties as an employee of the Company by more than fifty (50) miles; or 

(iv)    the failure of the Company to obtain the assumption of this Agreement by a successor.

 In order for an event to qualify as Good Reason, Executive must not terminate employment with the Company
without first providing the Company with written notice of the acts or omissions constituting the grounds for “Good Reason” within ninety (90) days of the initial existence of the grounds for “Good Reason” and a reasonable
cure period of not less than thirty (30) days following the date of such notice. 

(f)      Section 409A Limit. “Section 409A Limit” means the
lesser of two (2) times: (i) Executive’s annualized compensation based upon the annual rate of pay paid to Executive during the Executive’s taxable year preceding the Executive’s taxable year of Executive’s termination
of employment as determined under, and with such adjustments as are set forth in, Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto; or (ii) the maximum amount that may be
taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Executive’s employment is terminated. 

14.        Assignment. This Agreement will be binding upon and inure to
the benefit of (a) the heirs, executors and legal representatives of Executive upon Executive’s death and (b) any successor of the Company. Any such successor of the Company will be deemed substituted for the Company under the terms
of this Agreement for all purposes. For this purpose, “successor” means any person, firm, corporation or other business entity which at any time, whether by purchase, merger or otherwise, directly or indirectly acquires all or
substantially all of the assets or business of the Company. None of the rights of Executive to receive any form of compensation payable pursuant to this Agreement may be assigned or transferred except by will or the laws of descent and distribution.
Any other attempted assignment, transfer, conveyance or other disposition of Executive’s right to compensation or other benefits will be null and void. 

15.        Notices.    All notices, requests, demands
and other communications called for hereunder shall be in writing and shall be deemed given (i) on the date of delivery if delivered personally, (ii) one (1) day after being sent by a well established commercial overnight service, or
(iii) four (4) days after being mailed by registered or certified mail, return receipt requested, prepaid and addressed to the parties or their successors at the following addresses, or at such other addresses as the parties may later
designate in writing: 
 If to the Company: 

Pacific Biosciences of California, Inc. 

1380 Willow Road 

Menlo Park, CA 94025 

Attn: General Counsel 

If to Executive: 
  

 -9- 

   at the last residential address known by the Company.

 16.        Severability.  In the event that any
provision hereof becomes or is declared by a court of competent jurisdiction to be illegal, unenforceable or void, this Agreement will continue in full force and effect without said provision. 

17.        Integration.    This Agreement, together
with the Confidentiality Agreement and the Change in Control Severance Agreement, represents the entire agreement and understanding between the parties as to the subject matter herein and supersedes all prior or contemporaneous agreements whether
written or oral, including but not limited to the Employment Agreement entered into between Executive and the Company dated March 13, 2004, as amended December 17, 2008. No waiver, alteration, or modification of any of the provisions of
this Agreement will be binding unless in writing and signed by duly authorized representatives of the parties hereto. 

18.        Withholding.    All payments made pursuant
to this Agreement will be subject to withholding of applicable income and employment taxes. 

19.        Choice of Law.    The validity,
interpretation, construction, and performance of this Agreement will be governed by the laws of the State of California (with the exception of its conflict of laws provisions). Any claims or legal actions by one party against the other arising out
of the relationship between the parties contemplated herein (whether or not arising under this Agreement) will be commenced or maintained in any state or federal court located in San Mateo County, California, and Executive and the Company hereby
submit to the jurisdiction and venue of any such court. 

20.        Acknowledgment.    Executive acknowledges
that he has had the opportunity to discuss this matter with and obtain advice from his private attorney, has had sufficient time to, and has carefully read and fully understands all the provisions of this Agreement, including, but not limited to,
Section 16 regarding arbitration, and is knowingly and voluntarily entering into this Agreement. 

21.        Headings.    All captions and section
headings used in this Agreement are for convenient reference only and do not form a part of this Agreement. 

22.        Counterparts. This Agreement may be executed in counterparts,
each of which will be deemed an original, but all of which together will constitute one and the same instrument. 

[Signature Page Follows] 

 

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 IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the
case of the Company by their duly authorized officers, as of the day and year first above written. 
  

 

									
	COMPANY:	 		 	
			
	PACIFIC BIOSCIENCES OF CALIFORNIA, INC.	 		 	
					
	By:	 	 /s/ Susan Barnes
	 		 	Date:	 	9/17/10
		 	  Susan Barnes	 		 		 	
					
	Title:	 	   Chief Financial Officer
	 		 		 	
			
	EXECUTIVE:	 		 	
				
	 /s/ Hugh Martin
	 		 	Date:	 	9/1710
	Hugh Martin	 		 		 	

  

 -11-

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