Document:

exv10w2

 

Exhibit 10.2

ULTRATECH, INC.

SUPPLEMENTAL STOCK OPTION/STOCK ISSUANCE PLAN

AS AMENDED AND RESTATED EFFECTIVE JANUARY 29, 2008

ARTICLE ONE

GENERAL

          A. This Supplemental Stock Option/Stock Issuance Plan is intended to promote the interests of
Ultratech, Inc., a Delaware corporation, by authorizing an additional reserve of shares of the
Corporation’s common stock for issuance through long-term option grants, direct stock issuances and
other stock-based awards to individuals in the employ of the Corporation (or any Parent or
Subsidiary) who are not: (i) officers of the Corporation, (ii) employees with the title of Vice
President, General Manager or (iii) members of the Board.

          B. The Plan became effective immediately upon adoption by the Board on October 20, 1998. The
Plan was amended by the Board on January 29, 2008 to expressly authorize the issuance of restricted
stock unit awards under the Stock Issuance Program and to effect certain other technical revisions
to the Plan.

          C. The Plan shall supplement the authorized share reserve under the Corporation’s 1993 Stock
Option/Stock Issuance Plan, and share issuances under this Plan shall not reduce or otherwise
affect the number of shares of the Corporation’s common stock available for issuance under the 1993
Stock Option/Stock Issuance Plan. In addition, share issuances under the 1993 Stock Option/Stock
Issuance Plan shall not reduce or otherwise affect the number of shares of the Corporation’s common
stock available for issuance under this Plan.

          Capitalized terms shall have the meanings assigned to such terms in the attached Appendix.

     I. STRUCTURE OF THE PLAN

         A. The Plan shall be divided into two (2) separate equity programs:

               (i) the Option Grant Program under which eligible persons may, at the discretion of the
Plan Administrator, be granted options to purchase shares of Common Stock, and

               (ii) the Stock Issuance Program under which eligible persons may, at the discretion of
the Plan Administrator, be issued shares of Common Stock directly, either through the
immediate purchase of such shares or as a bonus for services rendered the Corporation (or
any Parent or Subsidiary) or the attainment of designated performance goals. Shares of
Common Stock may also be issued under the Stock Issuance Program pursuant to restricted
stock units or other stock right awards which entitle the recipients to receive the shares
underling those Awards upon the attainment of designated performance goals or the
satisfaction of specified Service requirements or upon the expiration of a designated time
period following the vesting of those Awards.

 

     II. ADMINISTRATION OF THE PLAN

          A. The Plan Administrator shall have full power and discretion (subject to the express
provisions of the Plan) to establish such rules and regulations as it may deem appropriate for the
proper administration of the Plan and to make such determinations under, and issue such
interpretations of, the provisions of the Plan and any outstanding Awards thereunder as it may deem
necessary or advisable. Decisions of the Plan Administrator shall be final and binding on all
parties who have an interest in the Option Grant or Stock Issuance Program or any outstanding Award
thereunder.

          B. The individuals serving as Plan Administrator shall serve for such period as the Board may
determine and shall be subject to removal by the Board at any time.

          C. Service as Plan Administrator shall constitute service as a Board member, and each Board
member serving as Plan Administrator shall accordingly be entitled to full indemnification and
reimbursement as a Board member for such service. No individual serving as Plan Administrator
shall be liable for any act or omission made in good faith with respect to the Plan or any option
grant or stock issuance made under the Plan.

     III. ELIGIBILITY

          A. The persons eligible to participate in the Plan shall be limited to those Employees who are
not at the time of the applicable Award: (i) officers of the Corporation, (ii) Employees with the
title of Vice President, General Manager or (iii) members of the Board.

          B. The Plan Administrator shall have full authority to determine (i) with respect to the
Option Grant Program, which eligible Employees are to receive option grants under the Plan, the
time or times when the grants are to be made, the number of shares subject to each such grant, the
time or times when each granted option is to become exercisable and the maximum term for which the
option may remain outstanding and (ii) with respect to stock issuances or other stock-based Awards
under the Stock Issuance Program, which eligible persons are to receive such Awards, the time or
times when such Awards are to be made, the number of shares subject to each such Award, the vesting
schedule (if any) applicable to the shares which are the subject of such Award and the cash
consideration (if any) payable for those shares. All options granted under the Plan shall be
Non-Statutory Options.

     IV. STOCK SUBJECT TO THE PLAN

          A. Shares of Common Stock shall be available for issuance under the Plan and shall be drawn
from either the Corporation’s authorized but unissued shares of Common Stock or from reacquired
shares of Common Stock, including shares repurchased by the Corporation on the open market. The
maximum number of shares of Common Stock reserved for issuance over the term of the Plan shall be
limited to 1,950,000 shares, subject to adjustment from time to time in accordance with the
provisions of Section IV.C. Such share reserve

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consists of (i) the 400,000 shares of Common Stock initially reserved for issuance under the
Plan plus (ii) the 400,000-share increase authorized by the Board effective October 19, 1999 plus
(iii) the additional 400,000-share increase authorized by the Board effective June 29, 2000 plus
(iv) the additional 750,000-share increase authorized by the Board effective January 29, 2002.

          B. Should one or more outstanding Awards under this Plan expire or terminate for any reason
prior to the issuance of all the shares of Common Stock subject to those Awards, then the shares
not issued under those Awards shall be available for subsequent issuance under the Plan. Unvested
shares issued under the Plan and subsequently cancelled or repurchased by the Corporation, at the
original issue price paid per share, pursuant to the Corporation’s repurchase rights under the Plan
shall be added back to the number of shares of Common Stock reserved for issuance under the Plan
and shall accordingly be available for reissuance through one or more subsequent Awards under the
Plan. Should the exercise price of an outstanding option under the Plan be paid with shares of
Common Stock, then the number of shares of Common Stock available for issuance under the Plan shall
be reduced by the gross number of shares for which the option is exercised, and not by the net
number of shares of Common Stock actually issued to the holder of such option.

          C. Should any change be made to the Common Stock issuable under the Plan by reason of any
stock split, stock dividend, recapitalization, combination of shares, exchange of shares, spin-off
transaction or other change affecting the outstanding Common Stock as a class without the
Corporation’s receipt of consideration, or should the value of the outstanding shares of Common
Stock be substantially reduced by reason of a spin-off transaction or extraordinary dividend or
distribution, equitable adjustments shall be made to (i) the maximum number and/or class of
securities issuable under the Plan, (ii) the number and/or class of securities and price per share
in effect under each Award outstanding under the Option Grant Program and (iii) the number and/or
class of securities subject to each outstanding Award under the Stock Issuance Program and the cash
consideration (if any) payable per share. Such adjustments to the outstanding Awards are to be
effected in a manner which shall preclude the enlargement or dilution of rights and benefits under
those outstanding Awards and other awards. The adjustments determined by the Plan Administrator
shall be final, binding and conclusive.

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ARTICLE TWO

OPTION GRANT PROGRAM

     I. OPTION TERMS

          Options granted under the Plan shall be authorized by action of the Plan Administrator and
shall be evidenced by one or more instruments in the form approved by the Plan Administrator;
provided, however, that each such instrument shall comply with the terms and conditions
specified below. All such granted options shall be Non-Statutory Options.

          A. Exercise Price.

               1. The exercise price per share shall be fixed by the Plan Administrator but shall not be less
than one hundred percent (100%) of the Fair Market Value per share of Common Stock on the grant
date.

               2. Full payment of the exercise price shall become immediately due upon exercise of the option
and shall be payable in one or more of the forms specified below:

                    (i) cash or check made payable to the Corporation,

                    (ii) shares of Common Stock held for the requisite period (if any) necessary to avoid a
charge to the Corporation’s earnings for financial reporting purposes and valued at Fair
Market Value on the Exercise Date, or

                    (iii) through a special sale and remittance procedure pursuant to which the Optionee
shall concurrently provide irrevocable instructions (a) to a Corporation-designated
brokerage firm to effect the immediate sale of the purchased shares and remit to the
Corporation, out of the sale proceeds available on the settlement date, sufficient funds to
cover the aggregate exercise price payable for the purchased shares plus all applicable
Federal, state and local income and employment taxes required to be withheld by the
Corporation in connection with such purchase and (b) to the Corporation to deliver the
certificates for the purchased shares directly to such brokerage firm on such settlement
date in order to complete the sale transaction.

          Except to the extent such sale and remittance procedure is utilized, payment of the exercise
price for the purchased shares must be made on the Exercise Date.

          B. Exercise and Term of Options. Each option shall be exercisable at such time or
times, during such period and for such number of shares as shall be determined by the Plan
Administrator and set forth in the documents evidencing such option. No option shall have a
maximum term in excess of ten (10) years measured from the option grant date.

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          C. Limited Transferability. Each option granted under the Plan may, in connection
with the Optionee’s estate plan, be assigned in whole or in part during the Optionee’s lifetime to
one or more members of the Optionee’s immediate family or to a trust established exclusively for
one or more such family members. The assigned portion may only be exercised by the person or
persons who acquire a proprietary interest in the option pursuant to the assignment. The terms
applicable to the assigned portion shall be the same as those in effect for the option immediately
prior to such assignment and shall be set forth in such documents issued to the assignee as the
Plan Administrator may deem appropriate.

          D. Effect of Termination of Service.

               1. The following provisions shall govern the exercise of any options held by the Optionee at
the time of cessation of Service or death:

                    (i) Any option outstanding at the time of the Optionee’s cessation of Service for any
reason shall remain exercisable for such period of time thereafter as shall be determined by
the Plan Administrator and set forth in the documents evidencing the option, but no such
option shall be exercisable after the expiration of the option term.

                    (ii) Any option exercisable in whole or in part by the Optionee at the time of death
may be subsequently exercised by the personal representative of the Optionee’s estate or by
the person or persons to whom the option is transferred pursuant to the Optionee’s will or
in accordance with the laws of descent and distribution.

                    (iii) Should the Optionee’s Service be terminated for Misconduct, then all outstanding
options held by the Optionee shall terminate immediately and cease to be outstanding.

                    (iv) During the applicable post-Service exercise period, the option may not be
exercised in the aggregate for more than the number of shares for which the option is
exercisable on the date of Optionee’s cessation of Service. Upon the expiration of such
post-Service exercise period or (if earlier) upon the expiration of the option term, the
option shall terminate and cease to be outstanding for any otherwise exercisable shares for
which the option has not been exercised. However, the option shall, immediately upon
Optionee’s cessation of Service for any reason, terminate and cease to be outstanding with
respect to any and all option shares for which the option is not otherwise at the time
exercisable.

          2. The Plan Administrator shall have the discretion, exercisable either at the time an option
is granted or at any time while the option remains outstanding, to:

                    (i) extend the period of time for which the option is to remain exercisable following
Optionee’s cessation of Service or death from the limited period otherwise in effect for
that option to such greater period of time as the Plan Administrator shall deem appropriate,
but in no event beyond the expiration of the option term, and/or

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                    (ii) permit the option to be exercised, during the applicable post-Service exercise
period, not only with respect to the number of shares of Common Stock for which such option
is exercisable at the time of the Optionee’s cessation of Service but also with respect to
one or more additional installments for which the option would have become exercisable had
the Optionee continued in Service.

          E. Stockholder Rights. No Optionee shall have any stockholder rights with respect to
any option shares until such person shall have exercised the option and paid the exercise price for
the purchased shares.

          F. Repurchase Rights.

               1. The Plan Administrator shall have discretion to authorize the issuance of unvested shares
of Common Stock under this Article Two. Should the Optionee cease Service while holding such
unvested shares, the Corporation shall have the right to repurchase any or all of those unvested
shares at the option exercise price paid per share. The terms and conditions upon which such
repurchase right shall be exercisable (including the period and procedure for exercise and the
appropriate vesting schedule for the purchased shares) shall be established by the Plan
Administrator and set forth in the instrument evidencing such repurchase rights.

               2. The Plan Administrator shall have the discretionary authority, exercisable at any time
while the Corporation’s repurchase right remains outstanding, to cancel that repurchase right with
respect to one or more shares purchased or purchasable by the Optionee under this Article Two and
thereby accelerate the vesting of those shares in whole or in part at any time.

     II. CORPORATE TRANSACTION/CHANGE IN CONTROL

          A. Each option outstanding under the Plan at the time of a Corporate Transaction shall
automatically accelerate so that each such option shall, immediately prior to the specified
effective date for the Corporate Transaction, become fully exercisable with respect to the total
number of shares of Common Stock at the time subject to that option and may be exercised for all or
any portion of those shares as fully-vested shares. However, an outstanding option under the Plan
shall not become exercisable on such an accelerated basis if and to the extent: (i) such option
is, in connection with the Corporate Transaction, either to be assumed by the successor corporation
or parent thereof or to be replaced with a comparable option to purchase shares of the capital
stock of the successor corporation or parent thereof, (ii) such option is to be replaced with a
cash incentive program of the successor corporation which preserves the option spread existing at
the time of the Corporate Transaction on the shares for which the option is not otherwise at that
time exercisable and provides for the subsequent vesting and payout if that spread in accordance
with the same vesting schedule applicable to such option or (iii) the acceleration of such option
is subject to other limitations imposed by the Plan Administrator at the time of the option grant.
The determination of option comparability under clause (i) above shall be made by the Plan
Administrator, and its determination shall be final, binding and conclusive.

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          B. All of the Corporation’s outstanding repurchase rights under this Article Two shall
automatically terminate, and the shares subject to those terminated rights shall immediately vest
in full, upon the occurrence of a Corporate Transaction, except to the extent (i) any such
repurchase right is to be assigned to the successor corporation (or parent thereof) in connection
with the Corporate Transaction or (ii) such accelerated vesting is precluded by other limitations
imposed by the Plan Administrator at the time the repurchase right is granted.

          C. The Plan Administrator shall have the discretionary authority, exercisable either at the
time the option is granted or at any time while the option remains outstanding, to provide (upon
such terms as it may deem appropriate) for the automatic acceleration of one or more outstanding
options which are assumed or replaced in the Corporate Transaction and do not otherwise accelerate
at that time (and the termination of any outstanding repurchase rights), in the event the
Optionee’s Service should subsequently terminate within a designated period following the effective
date of such Corporate Transaction.

          D. Immediately following the consummation of the Corporate Transaction, all outstanding
options under the Plan shall terminate and cease to remain outstanding, except to the extent
assumed by the successor corporation or its parent company.

          E. Each outstanding option which is assumed in connection with the Corporate Transaction shall
be appropriately adjusted, immediately after such Corporate Transaction, to apply and pertain to
the number and class of securities which would have been issued to the Optionee, in consummation of
the Corporate Transaction, had such person exercised the option immediately prior to the Corporate
Transaction. Appropriate adjustments shall also be made to the exercise price payable per share,
provided the aggregate exercise price payable for such securities shall remain the same. In
addition, the class and number of securities available for issuance under the Plan following the
consummation of the Corporate Transaction shall be appropriately adjusted.

          F. The Plan Administrator shall have the discretionary authority, exercisable either at the
time the option is granted or at any time while the option remains outstanding, to provide for the
automatic acceleration of one or more outstanding options under the Plan (and the termination of
one or more of the Corporation’s outstanding repurchase rights) upon the occurrence of any Change
in Control. The Plan Administrator shall also have full power and authority to condition any such
option acceleration (and the termination of any outstanding repurchase rights) upon the subsequent
termination of the Optionee’s Service within a specified period following the Change in Control.
Any options accelerated in connection with the Change in Control shall remain fully exercisable
until the expiration or sooner termination of the option term.

          G. The grant of options under the Plan shall in no way affect the right of the Corporation to
adjust, reclassify, reorganize or otherwise change its capital or business structure or to merge,
consolidate, dissolve, liquidate or sell or transfer all or any part of its business or assets.

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     III. CANCELLATION AND REGRANT OF OPTIONS

          The Plan Administrator shall have the authority to effect, at any time and from time to time,
with the consent of the affected optionees, the cancellation of any or all outstanding options
under this Article Two and to grant in substitution new options under the Plan covering the same or
different numbers of shares of Common Stock but with an option exercise price per share not less
than the Fair Market Value of the Common Stock on the new grant date.

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ARTICLE THREE

STOCK ISSUANCE PROGRAM

     I. TERMS AND CONDITIONS OF STOCK ISSUANCES

          Shares of Common Stock may be issued under the Stock Issuance Program through direct and
immediate issuances without any intervening stock option grants. Shares of Common Stock may also
be issued under the Stock Issuance Program pursuant to restricted stock units or other stock right
awards which entitle the recipients to receive the shares underlying those Awards upon the
attainment of designated performance goals or the satisfaction of specified Service requirements or
upon the expiration of a designated time period following the vesting of those Awards. Each Award
under the Stock Issuance Program shall be evidenced by a Stock Award Agreement which complies with
the terms and conditions of this Article Three.

          A. Consideration.

               1. Shares of Common Stock may be issued for a cash consideration per share fixed by the Plan
Administrator at the of the Award, but in no event shall such cash consideration be less than one
hundred percent (100%) of the Fair Market Value per share of Common Stock on the Award date

               2. Shares of Common Stock underlying restricted stock units or other stock rights awarded
under the Stock Issuance Program shall be issued for consideration in the form of services rendered
the Corporation (or any Parent or Subsidiary) over the term the Award remains outstanding.

          B. Vesting Provisions.

               1. Shares of Common Stock issued under the Stock Issuance Program may, in the discretion of
the Plan Administrator, be fully and immediately vested upon issuance or may vest in one or more
installments over the Participant’s period of Service or upon the attainment of specified
performance objectives. Shares of Common Stock may also be issued under the Stock Issuance Program
pursuant to restricted stock units or other stock right awards which entitle the recipients to
receive the shares underlying those Awards upon the attainment of designated performance goals or
the satisfaction of specified Service requirements or upon the expiration of a designated time
period following the vesting of those Awards, including (without limitation) a deferred
distribution date following the termination of the Participant’s Service.

               2. The Participant shall have full stockholder rights with respect to any shares of Common
Stock issued to him or her under the Plan, whether or not his or her interest in those shares is
vested. Accordingly, the Participant shall have the right to vote such shares and to receive any
regular cash dividends paid on such shares. Any new, additional or different shares of stock or
other securities or property (including money paid other than as a regular cash dividend) which the
Participant may have the right to receive with respect to his or

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her unvested shares of Common
Stock by reason of any stock dividend, stock split, reclassification, combination of shares,
exchange of shares or other change affecting the Common Stock as a class without the Corporation’s
receipt of consideration shall be issued, subject to (i) the same vesting requirements applicable
to his or her unvested shares and (ii) such escrow arrangements as the Plan Administrator shall
deem appropriate.

               3. Should the Participant cease to remain in Service while holding one or more unvested shares
of Common Stock issued under the Stock Issuance Program or should the performance objectives not be
attained with respect to one or more such unvested shares of Common Stock, then those shares shall
be immediately surrendered to the Corporation for cancellation, and the Participant shall have no
further stockholder rights with respect to those shares. To the extent the surrendered shares were
previously issued to the Participant for cash consideration, the Corporation shall repay that
consideration to the Participant at the time the shares are surrendered.

               4. The Participant shall not have any stockholder rights with respect to the shares of Common
Stock subject to restricted stock units or stock right award until that Award vests and the shares
of Common Stock are actually issued thereunder.

               5. The Plan Administrator may in its discretion waive the surrender and cancellation of one or
more unvested shares of Common Stock (or other assets attributable thereto) which would otherwise
occur upon the cessation of Participant’s Service or the non-attainment of the performance
objectives applicable to those shares. Such waiver shall result in the immediate vesting of the
Participant’s interest in the shares of Common Stock as to which the waiver applies. Such waiver
may be effected at any time, whether before or after the Participant’s cessation of Service or the
attainment or non-attainment of the applicable performance objectives.

               6. Outstanding restricted stock units or other stock right awards under the Stock Issuance
Program shall automatically terminate, and no shares of Common Stock shall actually be issued in
satisfaction of those Awards, if the performance goals or Service requirements established for such
Awards are not attained or satisfied. The Plan Administrator, however, shall have the discretionary
authority to issue vested shares of Common Stock under one or more outstanding restricted stock
units or other stock right awards as to which the designated performance goals or Service
requirements have not been attained or satisfied.

     II. CORPORATE TRANSACTION/CHANGE IN CONTROL

          A. In the event of any Corporate Transaction, all of the Corporation’s outstanding repurchase
rights under the Stock Issuance Program shall terminate automatically and all the shares of Common
Stock subject to those terminated rights shall immediately vest in full, except to the extent (i)
those repurchase rights are to be assigned to the successor corporation (or parent thereof) in
connection with such Corporate Transaction or (ii) the Plan Administrator imposes other limitations
in the Issuance Agreement which preclude such accelerated vesting in whole or in part.

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          B. The Plan Administrator shall have the discretionary authority, exercisable either at the
time the unvested shares are issued or any time while the Corporation’s repurchase rights remain
outstanding under the Stock Issuance Program, to provide that those rights shall automatically
terminate in whole or in part, and the shares of Common Stock subject to those terminated rights
shall immediately vest, upon the Participant’s termination of Service within a designated period
following the effective date of any Corporate Transaction in which those repurchase rights are
assigned to the successor corporation (or parent thereof).

          C. The Plan Administrator shall have the discretionary authority, exercisable either at the
time the unvested shares are issued or any time while the Corporation’s repurchase rights remain
outstanding under the Stock Issuance Program, to provide that those rights shall automatically
terminate in whole or in part, and the shares of Common Stock subject to those terminated rights
shall immediately vest, upon the occurrence of a Change in Control. Alternatively, the Plan
Administrator may condition such accelerated vesting upon the Participant’s termination of Service
within a designated period following the effective date of any Change in Control.

          D. Each outstanding restricted stock unit or share right award may be assumed in connection
with a Corporate Transaction or Change in Control or otherwise continued in effect. Each Award so
assumed or continued in effect shall be adjusted immediately after the consummation of that
Corporate Transaction or Change in Control so as to apply to the number and class of securities
into which the shares of Common Stock subject to the award immediately prior to the Corporate
Transaction or Change in Control would have been converted in consummation of such Corporate
Transaction or Change in Control had those shares actually been outstanding at that time, and
appropriate adjustments shall also be made to the cash consideration (if any) payable per share
thereunder, provided the aggregate cash consideration shall remain the same. If any such
restricted stock unit or other stock right award is not so assumed or otherwise continued in effect
or replaced with a cash incentive program of the successor corporation which preserves the Fair
Market Value of the underlying shares of Common Stock at the time of the Change in Control and
provides for the subsequent vesting and payout of that value in accordance with the same vesting
schedule applicable to those shares, then such Award shall vest, and the shares of Common Stock
subject to that Award shall be issued as fully-vested shares, immediately prior to the consummation
of the Corporate Transaction or Change in Control., unless provided otherwise in the applicable
Stock Award Agreement

          E. The Plan Administrator shall have the discretionary authority to structure one or more
restricted stock units or other stock right awards under the Stock Issuance Program so that the
shares of Common Stock subject to those Awards shall automatically vest and become issuable in
whole or in part immediately upon the occurrence of a Corporate Transaction or Change in Control or
upon the subsequent termination of the Participant’s Service by reason of an Involuntary
Termination within a designated period following the effective date of that Corporate Transaction
or Change in Control.

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     III. SHARE ESCROW/LEGENDS

          Unvested shares may, in the Plan Administrator’s discretion, be held in escrow by the
Corporation until the Participant’s interest in such shares vests or may be issued directly to the
Participant with restrictive legends on the certificates evidencing those unvested shares.

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ARTICLE FOUR

MISCELLANEOUS

     I. EFFECTIVE DATE AND TERM OF PLAN

          A. This Plan became effective upon approval by the Board on October 20, 1998 and shall not be
subject to stockholder approval. The Plan was amended by the Board on October 19, 1999 to increase
the number of shares of Common Stock reserved for issuance under the Plan from 400,000 shares to
800,000 shares and was further amended on June 29, 2000 to increase the number of shares of Common
Stock reserved for issuance under the Plan from 800,000 shares to 1,200,000 shares. Both
400,000-share increases were effective immediately and were not subject to stockholder approval.
On January 29, 2002, the Board amended the Plan to increase the number of shares of Common Stock
reserved for issuance under the Plan from 1, 200,000 shares to 1,950,000 shares. Such increase was
effective immediately and was not subject to stockholder approval. On January 29, 2008 the Board
amended the Plan to expressly authorized the issuance of restricted stock units and other
stock-based awards under the Stock Issuance Program which will entitle the recipient to the shares
of Common Stock underlying those Awards upon the attainment of designated performance goals or the
satisfaction of specified Service requirements or upon the expiration of a designated time period
following the vesting of those Awards. Such amendment was not subject to stockholder approval.

          B. The Plan shall terminate upon the earlier of (i) October 19, 2008 and (ii) the date on
which all shares available for issuance under the Plan shall have been issued as fully-vested
shares pursuant to the Awards made under the Plan. If the date of termination is determined under
clause (i) above, then all Awards outstanding on such date shall thereafter continue to have force
and effect in accordance with the provisions of the applicable agreements evidencing those Awards.

     II. AMENDMENT OF THE PLAN

          The Board has complete and exclusive power and authority to amend or modify the Plan in any or
all respects whatsoever. However, no such amendment or modification shall adversely affect rights
and obligations with respect to stock options, unvested stock issuances or other stock-based awards
at the time outstanding under the Plan, unless the affected Optionees or Participants consent to
such amendment.

     III. USE OF PROCEEDS

          Any cash proceeds received by the Corporation from the sale of shares pursuant to option
grants or stock issuances under the Plan shall be used for general corporate purposes.

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     IV. REGULATORY APPROVALS

          A. The implementation of the Plan, the granting of any Award under the Plan, and the issuance
of Common Stock upon the exercise or settlement of such Awards shall be subject to the
Corporation’s procurement of all approvals and permits required by regulatory authorities having
jurisdiction over the Plan, the Awards made under it and the Common Stock issued pursuant to it.

          B. No shares of Common Stock or other assets shall be issued or delivered under this Plan
unless and until there shall have been compliance with all applicable requirements of Federal and
state securities laws, including the filing and effectiveness of the Form S-8 registration
statement for the shares of Common Stock issuable under the Plan, and all applicable listing
requirements of any stock exchange (or the Nasdaq National Market, if applicable) on which the
Common Stock is then listed for trading.

     V. TAX WITHHOLDING

          The Corporation’s obligation to deliver shares of Common Stock upon the exercise of stock
options for such shares or the issuance or vesting of such shares under the Plan shall be subject
to the satisfaction of all applicable federal, state and local income and employment tax
withholding requirements.

     VI. AT WILL EMPLOYMENT/SERVICE

          Neither the action of the Corporation in establishing the Plan, nor any action taken by the
Plan Administrator hereunder, nor any provision of the Plan shall be construed so as to grant any
individual the right to remain in Service for any period of specific duration, and the Corporation
(or any Parent or Subsidiary employing such individual) may terminate such individual’s Service at
any time and for any reason, with or without cause.

     VII. MISCELLANEOUS PROVISIONS

          A. The right to acquire Common Stock or other assets under the Plan may not be assigned,
encumbered or otherwise transferred by any Optionee or Participant, except as expressly provided
herein.

          B. The provisions of the Plan relating to the exercise of options and the vesting of shares
shall be governed by the laws of the State of California, as such laws are applied to contracts
entered into and performed in such state.

          C. The provisions of the Plan shall insure to the benefit of, and shall be binding upon, the
Corporation and its successors and assigns, whether by Corporate Transaction or otherwise, and the
Participants and Optionees and the legal representatives, heirs or legatees of their respective
estates.

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APPENDIX

          The following definitions shall be in effect under the Plan:

          A. Award shall mean any of the following awards authorized for issuance or grant under
the Plan: stock options, direct stock issuances, restricted stock units or other stock right awards

          B. Board shall mean the Corporation’s Board of Directors.

          C. Change in Control shall mean a change in ownership or control of the Corporation
effected through either of the following transactions:

               (i) the acquisition, directly or indirectly by any person or related group of persons
(other than the Corporation or a person that directly or indirectly controls, is controlled
by, or is under common control with, the Corporation), of beneficial ownership (within the
meaning of Rule 13d-3 of the 1934 Act) of securities possessing more than fifty percent
(50%) of the total combined voting power of the Corporation’s outstanding securities
pursuant to a tender or exchange offer made directly to the Corporation’s stockholders, or

               (ii) a change in the composition of the Board over a period of thirty-six (36)
consecutive months or less such that a majority of the Board members ceases, by reason of
one or more contested elections for Board membership, to be comprised of individuals who
either (A) have been Board members continuously since the beginning of such period or (B)
have been elected or nominated for election as Board members during such period by at least
a majority of the Board members described in clause (A) who were still in office at the time
the Board approved such election or nomination.

          D. Code shall mean the Internal Revenue Code of 1986, as amended.

          E. Common Stock shall mean the Corporation’s common stock.

          F. Corporate Transaction shall mean any of the following stockholder-approved
transactions to which the Corporation is a party:

               (i) a merger or consolidation in which the Corporation is not the surviving entity,
except for a transaction the principal purpose of which is to change the State in which the
Corporation is incorporated,

               (ii) the sale, transfer or other disposition of all or substantially all of the assets
of the Corporation in complete liquidation or dissolution of the Corporation, or

               (iii) any reverse merger in which the Corporation is the surviving entity but in which
securities possessing more than fifty percent (50%) of the total combined voting power of
the Corporation’s outstanding securities are transferred to person or persons different from
the persons holding those securities immediately prior to such merger.

15

 

          G. Corporation shall mean Ultratech, Inc., a Delaware corporation, and its successors.

          H. Employee shall mean an individual who is in the employ of the Corporation (or any
Parent or Subsidiary), subject to the control and direction of the employer entity as to both the
work to be performed and the manner and method of performance.

          I. Exercise Date shall mean the date on which the Corporation shall have received
written notice of the option exercise.

          J. Fair Market Value per share of Common Stock on any relevant date shall be
determined in accordance with the following provisions:

               - If the Common Stock is at the time traded on the Nasdaq Global or Global Select Market, then
the Fair Market Value shall be the closing selling price per share of Common Stock on the date in
question, as such price is reported on by the National Association of Securities Dealers on such
exchange. If there is no reported closing selling price for the Common Stock on the date in
question, then the Fair Market Value shall be the closing selling price on the last preceding date
for which such quotation exists.

               - If the Common Stock is at the time listed on any other national stock exchange, then the
Fair Market Value shall be the closing selling price per share of Common Stock on the date in
question on the stock exchange determined by the Plan Administrator to be the primary market for
the Common Stock, as such price is officially quoted in the composite tape of transactions on such
exchange and published in The Wall Street Journal. If there is no closing selling price for the
Common Stock on the date in question, then the Fair Market Value shall be the closing selling price
on the last preceding date for which such quotation exists.

          K. Misconduct shall mean the commission of any act of fraud, embezzlement or
dishonesty by the Optionee or Participant, any unauthorized use or disclosure by such person of
confidential information or trade secrets of the Corporation (or any Parent or Subsidiary), or any
other intentional misconduct by such person adversely affecting the business or affairs of the
Corporation (or any Parent or Subsidiary) in a material manner. The foregoing definition shall not
be deemed to be inclusive of all the acts or omissions which the Corporation (or any Parent or
Subsidiary) may consider as grounds for the dismissal or discharge of any Optionee, Participant or
other person in the Service of the Corporation (or any Parent or Subsidiary).

          L. 1934 Act shall mean the Securities Exchange Act of 1934, as amended.

          M. Non-Statutory Option shall mean an option not intended to satisfy the requirements
of Code Section 422.

          N. Option Grant Program shall mean the option grant program in effect under the Plan.

16

 

          O. Optionee shall mean any person to whom an Award is made under the Option Grant
Program.

          P. Parent shall mean any corporation (other than the Corporation) in an unbroken chain
of corporations ending with the Corporation, provided each corporation in the unbroken chain (other
than the Corporation) owns, at the time of the determination, stock possessing fifty percent (50%)
or more of the total combined voting power of all classes of stock in one of the other corporations
in such chain.

          Q. Participant shall mean any person who receives an Award under the Stock Issuance
Program in effect under the Plan.

          R. Permanent Disability or Permanently Disabled shall mean the inability of an
individual to engage in any substantial gainful activity by reason of any medically determinable
physical or mental impairment expected to result in death or to be of continuous duration of twelve
(12) months or more.

          S. Plan shall mean the Corporation’s Supplemental Stock Option/Stock Issuance Plan, as
set forth in this document.

          T. Plan Administrator shall mean the committee comprised of one or more Board members
appointed by the Board to administer the Plan.

          U. Service shall mean the provision of services on a periodic basis to the Corporation
(or any Parent or Subsidiary) in the capacity of an Employee or an independent consultant or
advisor, except to the extent otherwise specifically provided in the applicable stock option
agreement.

          V. Stock Award Agreement shall mean the agreement entered into by the Corporation and
the Participant at the time an Award is made to such Participant under the Stock Issuance Program.

          W. Stock Issuance Program shall mean the stock issuance program in effect under the
Plan.

          X. Subsidiary shall mean any corporation (other than the Corporation) in an unbroken
chain of corporations beginning with the Corporation, provided each corporation (other than the
last corporation) in the unbroken chain owns, at the time of the determination, stock possessing
fifty percent (50%) or more of the total combined voting power of all classes of stock in one of
the other corporations in such chain.

17exv10w30

 

Exhibit 10.30

			
	 	 	 
	CONFIDENTIAL
	 	EXECUTION VERSION

PATENT LICENSE AGREEMENT

This is a license agreement (“Agreement”), effective as of the date of last signature by a Party
hereto (the “Effective Date”), between RXi Pharmaceuticals Corporation (“Licensee”), a Delaware
corporation having its registered office at One Innovation Drive, Worcester, Massachusetts 01605
and Invitrogen IP Holdings, Inc. (“IIPH”), a wholly owned subsidiary of Invitrogen Corporation
(“Invitrogen”), a Delaware corporation having its principal place of business at 1600 Faraday
Avenue, Carlsbad, CA 92008. Each of Licensee and IIPH may be referred to herein as a “Party” or
collectively as the “Parties”.

BACKGROUND

     WHEREAS, Invitrogen is the owner of the entire right, title and interest in the Licensed
Patents (as defined below);

     WHEREAS, IIPH has been authorized by Invitrogen to grant licenses under the Licensed Patents,
and has conveyed rights in the Licensed Patents sufficient to enable
IIPH to grant such licenses;

     WHEREAS, Licensee desires to acquire rights under the Licensed Patents;

     WHEREAS, IIPH is willing to grant such rights to Licensee, subject to the terms and
conditions set forth in this Agreement; and

     NOW THEREFORE, in consideration of the mutual agreements contained herein and for other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
Parties intending to be legally bound agree as follows:

	1.	 	Definitions

For the purpose of this Agreement, and solely for that purpose, the terms set forth hereinafter
shall be defined as follows:

	1.1	 	“Affiliate” means, with respect to Licensee, any entity (i) Controlling, Controlled by, or
under common Control with Licensee as of the Effective Date and (ii) Controlled by
Licensee at any time after the Effective Date. “Affiliate” means, with respect to IIPH,
any entity Controlling, Controlled by, or under common Control with IIPH at any time.
	 
	1.2	 	“Alliance Partner” means a Third Party with whom Licensee has entered into a written,
executed agreement for the research, development, and or commercialization of RNAi
products intended for use as therapeutics in humans, under which agreement Licensee
either retains the right to commercialize the resulting RNAi products or to receive at least
a material portion of the sales revenue of the resulting RNAi products from such Third

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	CONFIDENTIAL
	 	EXECUTION VERSION

	 	 	Party by way of royalty, profit participation or other mechanism, and which agreement binds
such Third Party to all obligations herein which are for the benefit of IIPH with respect to
any rights licensed hereunder which are conveyed to such Third Party.
	 
	1.3	 	“Clinical Field” means (i) in vivo administration of a Licensed Product for human
therapeutic purposes, and (ii) ex vivo administration of a Licensed Product to cells or
tissues to be implanted in a human patient. Both (i) and (ii) in the preceding sentence
shall include clinical trials.
	 
	1.4	 	“Clinical Option” has the meaning set forth in
Section 2.3.2.
	 
	1.5	 	“Clinical Option Exercise Date” has the meaning set forth in Section 2.3.2.
	 
	1.6	 	“Clinical Option Expiration Date” has the meaning set forth in Section 2.3.2.
	 
	1.7	 	“Clinical Target” means a Pre-Clinical Target for which Licensee has exercised the
Clinical Option (including payment of the corresponding fee(s) set forth in Section 4.4) to
designate such Pre-Clinical Target as a Clinical Target. Clinical Targets are set forth in
Exhibit C attached hereto.
	 
	1.8	 	“Commercial Activity” means any activity by an entity for consideration and may
include, but is not limited to: (1) use of a Licensed Product or the Licensed Patents in
manufacturing; (2) use of a Licensed Product or the Licensed Patents to provide a service,
information, or data (other than Licensee’s use on behalf of Alliance Partners in
accordance with this Agreement); (3) use of a Licensed Product for therapeutic,
diagnostic or prophylactic purposes in humans; or (4) resale or other transfer for
consideration of a Licensed Product (other than Licensee’s transfers to Alliance Partners
in accordance with this Agreement), whether or not such product or its components are
resold or otherwise transferred for use in the Research Field or Pre-Clinical Field.
	 
	1.9	 	“Consent Date” has the meaning set forth in Section 3.1.
	 
	1.10	 	“Control” means the right to determine fundamental issues relating to an entity, whether
through an ownership interest, contractual power, or otherwise.
	 
	1.11	 	“Customer” means a Third Party to whom Licensee or its Affiliates or Alliance Partners
sells a Licensed Product for such Customer’s use in the Clinical Field.
	 
	1.12	 	“FDA” shall mean the United States Food and Drug Administration, or any successor
agency having regulatory jurisdiction over the manufacture, distribution and sale of drugs
in the United States.
	 
	1.13	 	“IND” means an Investigational New Drug application filed with and accepted by the
FDA or any corresponding application filed in any country other than the United States.
	 
	1.14	 	“Licensee Technology” means patents or patent applications owned or controlled (with
the right to sublicense) by Licensee relating to RNA target
sequences, RNA chemical modifications, RNA configurations and/or RNA delivery to cells.

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	CONFIDENTIAL
	 	EXECUTION VERSION

	1.15	 	“Licensed Patents” means only U.S. Patent Application Nos. 09/156,323, 10/357,529,
10/357,826, 11/049,636, and any patent applications which are continuations,
continuations-in-part, or divisions of any of the preceding, any U.S. patents issuing from
any of the foregoing, reissues, reexaminations, extensions, and substitutions of any of the
foregoing, and all foreign patent applications and patents claiming priority from or
sharing a priority claim with any of the foregoing.
	 
	1.16	 	“Licensed Product” means an RNA or RNA analogue intended for in-vivo modulation of
the expression of a Research Target, Pre-Clinical Target, or Clinical Target and whose
manufacture, use, sale, or import would, but for the license granted hereunder, infringe one
or more Valid Claims of Licensed Patents.
	 
	1.17	 	“Net Sales” means the gross receipts of Licensee, its Affiliates, and/or Alliance Partners
from the sale to Customers of Licensed Products less deductions for (i) import, export,
excise, sales, value added and use taxes, custom duties, freight and insurance invoiced to
and/or paid by the purchaser of such Licensed Products (ii) trade discounts customarily
and actually allowed (other than advertising allowances, and fees or commissions to
Licensee’s employees); and (iii) credits for returns, allowances or trades, actually
granted.
	 
	 	 	No allowance or deduction shall be made for commissions or fees for collection, by
whatever name known.
	 
	 	 	Net Sales shall be calculated on the basis of sales or transfers to Customers by Licensee or
its Affiliates, or its Alliance Partners. Sales among Licensee and its Affiliates or
Alliance Partners for resale to Customers shall not be included in Net Sales.
	 
	1.18	 	“Pre-Clinical Field” means in vitro and in vivo laboratory animal testing to determine the
toxic and pharmacologic effects of a Licensed Product to support an IND submission for
such Licensed Product. The Pre-Clinical Field specifically excludes Commercial Activity
and the Clinical Field. The exclusion of Commercial Activity in the preceding sentence
shall not preclude Licensee from contracting with service providers to provide services
for consideration only for the benefit of Licensee, if such services require the delivery to,
and use by service provider of Licensed Products owned by Licensee.
	 
	1.19	 	“Pre-Clinical Option” has the meaning set forth in Section 2.2.
	 
	1.20	 	“Pre-Clinical Option Exercise Date” has the meaning set forth in Section 2.2.
	 
	1.21	 	“Pre-Clinical Option Expiration Date” has the meaning set forth in Section 2.2
	 
	1.22	 	“Pre-Clinical Target” means a Research Target for which Licensee has exercised the Pre-
Clinical Option (including payment of the corresponding fee(s) set forth in Section 4.3) to
designate such Research Target as a Pre-Clinical Target. Pre-Clinical Targets are set forth
in Exhibit B attached hereto.
	 
	1.23	 	“Research Field” means internal biological research and development of Licensed
Products directed to Research Targets, which research is conducted by Licensee and/or its

Page 3 of 22

 

			
	 	 	 
	CONFIDENTIAL
	 	EXECUTION VERSION

	 	 	Alliance Partners at the premises of Licensee and/or its Alliance Partners. The Research
Field specifically excludes Commercial Activity, the Pre-Clinical Field and the Clinical
Field.
	 
	1.24	 	“Research Target” means a Target that has been designated by Licensee as a Research
Target (according to the procedure in Section 3.1) and for which the fees set forth in
Section 4.2 have been received by IIPH. Research Targets are listed in Exhibit A attached
hereto.
	 
	1.25	 	“Target” means an individual gene or transcription product thereof, and includes
polymorphisms and splice variants thereof, but excludes homologs of such gene located
in a different region of the same chromosome or on a different chromosome.
	 
	1.26	 	“Term” has the meaning set forth in Section 6.1.
	 
	1.27	 	“Territory” means the entire world.
	 
	1.28	 	“Third Party” means any party or entity other than Invitrogen, Invitrogen’s Affiliates,
Licensee, and Licensee’s Affiliates.
	 
	1.29	 	“Valid Claim” means (i) an issued, unexpired claim of a patent within Licensed Patents
which has not been held invalid or otherwise unenforceable by a court from which no
appeal has or can be taken, and (ii) a claim in a pending patent application included
within the Licensed Patents that has not been cancelled, withdrawn, abandoned, or
pending for more than five (5) years after filing.
	 
	2.	 	Grant of Rights
	 
	2.1	 	Non-Exclusive Research License Subject to the terms and conditions of this Agreement,
including payment by Licensee of the amounts set forth in Sections 4.1 and 4.2, IIPH
hereby grants to Licensee, and Licensee hereby accepts from IIPH a limited,
nonexclusive, sublicensable only as provided in Section 2.6, transferable only as provided
in Section 9, license under the Licensed Patents in the Territory in the Research Field to
have made (by an Invitrogen-approved and licensed manufacturer), use, import, and have
imported Licensed Products directed to Research Targets.
	 
	2.2	 	Exclusive, Non-Renewable 3-year Option on Research Targets Subject to the terms and
conditions of this Agreement, including payment by Licensee of the amounts set forth in
Sections 4.1 and 4.2, IIPH hereby grants to Licensee, and Licensee hereby accepts from
IIPH, a limited, exclusive, non-transferable, non-renewable three (3) year option (“Pre-
Clinical Option”), for each Research Target, to (i) designate such Research Target as a
Pre-Clinical Target, (ii) activate the rights in Section 2.3.1 for pre-clinical development
of each such designated Pre-Clinical Target, and (iii) secure the option set forth in
Section 2.3.2 for clinical development of each such designated Pre-Clinical Target. The
three (3) year option term for a particular Research Target shall begin upon the Consent
Date for such Research Target and shall continue for a period of three (3) years, after
which time such option shall expire (“Pre-Clinical Option Expiration Date”) and IIPH
shall be free to grant exclusive options to Third Parties for such Research Target. To

Page 4 of 22

 

			
	 	 	 
	CONFIDENTIAL
	 	EXECUTION VERSION

	 	 	exercise the Pre-Clinical Option for a particular Research Target, Licensee shall notify
IIPH in writing (in accordance with Section 12.2) at any point during the three (3) year
option period and, simultaneous with such notice, provide the payment set forth in Section
4.3. The date of IIPH’s receipt of Licensee’s written notice and payment shall constitute
the exercise date (“Pre-Clinical Option Exercise Date”) for that particular Research Target.
	 
	2.3	 	Non-Exclusive Pre-Clinical Development License; Exclusive, Non-Renewable 2-year
Option on Pre-Clinical Targets Effective upon exercise of the Pre-Clinical Option for a
particular Research Target to be designated a Pre-Clinical Target, and subject to (i) the
terms and conditions of this Agreement, (ii) Licensee’s being current on the payment
obligations in Sections 4.1 and 4.2, and (iii) payment of the fee specified in Section 4.3,
IIPH grants to Licensee and Licensee accepts from IIPH, for each such designated Pre-Clinical Target:

	 	2.3.1	 	a limited, nonexclusive, sublicensable only as provided in Section 2.6,
transferable only as provided in Section 9, license under the Licensed Patents in
the Territory in the Pre-Clinical Field to have made (by an Invitrogen-approved
and licensed manufacturer), use, import, and have imported Licensed Products
directed to such Pre-Clinical Target; and
	 
	 	2.3.2	 	a limited, exclusive, non-transferable, non-renewable two (2) year option
(“Clinical Option”), for each Pre-Clinical Target, to (i) designate such
Pre-Clinical Target as a Clinical Target and (ii) activate the rights in Section 2.4 for
clinical development of each such designated Clinical Target. The two (2) year
option term for a particular Pre-Clinical Target shall begin upon the Pre-Clinical
Option Exercise Date and shall continue for a period of two (2) years, after which
time such option shall expire (“Clinical Option Expiration Date”) and IIPH shall
be free to grant exclusive options to Third Parties for such Pre-Clinical Target. To
exercise the Clinical Option for a particular Pre-Clinical Target, Licensee shall
notify IIPH in writing (in accordance with Section 12.2) at any point during the
two (2) year option period and, simultaneous with such notice, provide the
payment set forth in Section 4.4. The date of IIPH’s receipt of Licensee’s written
notice and payment shall constitute the exercise date (“Clinical Option Exercise
Date”) for that particular Pre-Clinical Target.

	2.4	 	Exclusive License for Clinical Development and Commercialization of Clinical Targets
Effective upon exercise of a Clinical Option for a particular Pre-Clinical Target to be
designated a Clinical Target, and subject to (i) the terms and conditions of this
Agreement, (ii) Licensee being current on all payments due in Sections 4.1, 4.2 and 4.3,
and (iii) payment of the fee specified in Section 4.4, IIPH grants to Licensee and Licensee
accepts from IIPH, for each such designated Clinical Target, a limited, exclusive,
sublicensable only as provided in Section 2.6, transferable only as provided in Section 9,
license under the Licensed Patents in the Territory in the Clinical Field to make, have
made, use, import, have imported, offer for sale, sell, and have sold Licensed Products
directed to such Clinical Targets.

Page 5 of 22

 

			
	 	 	 
	CONFIDENTIAL
	 	EXECUTION VERSION

	2.5	 	Exclusive Option and Exclusive License Acknowledgements
	 
	 	 	2.5.1 Licensee acknowledges and agrees that the exclusive options granted under
Sections 2.2 and 2.3.2 only apply to Research Targets and Pre-Clinical Targets under this
Agreement, and that such exclusive options shall not preclude IIPH from granting, for
any use and to any Third Party, exclusive options to any Targets that are not a Research
Target, Pre-Clinical Target, or Clinical Target under this Agreement.
	 
	 	 	2.5.2 Licensee acknowledges and agrees that the exclusive license granted under
Section 2.4 is limited to Clinical Targets under this Agreement, and that such exclusive
license shall not preclude IIPH from granting, for any use and to any Third Party,
exclusive licenses to any Targets that are not a Research Target, Pre-Clinical Target, or
Clinical Target under this Agreement.
	 
	2.6	 	Limited Right to Extend Certain Rights Granted Hereunder to Alliance Partners The
grant of rights to Licensee in Sections 2.1, 2.3.1, and 2.4 (in the case of Sections 2.3.1
and 2.4, only upon activation of such rights by exercise of a Pre-Clinical Option or
Clinical Option and payment therefor, respectively) includes the right for Licensee to
extend to Alliance Partners the following rights:

	 	(a)	 	the rights under Section 2.1 to use and import Licensed Products for Research
Targets, and
	 
	 	(b)	 	the rights under Section 2.3.1 to use and import Licensed Products for
Pre-Clinical Targets, and
	 
	 	(c)	 	the rights under Section 2.4 to use, import, offer for sale, and sell Licensed
Products for Clinical Targets,

	 	 	provided that in all cases such rights are extended only in conjunction with equivalent or
greater rights to Licensee Technology pursuant to a written agreement between such Alliance
Partner and Licensee, which written agreement (i) contains restrictions on the use of
Licensed Products no less stringent than those contained in this Agreement, (ii) restricts
further transfer of any Licensed Products to any Third Party (other than the sale of
Licensed Products for Clinical Targets), (iii) grants to IIPH and its Affiliates the right
to audit under the terms and conditions in Section 5.2, and (iv) requires that such Alliance
Partner agree in writing to transfer to Licensee or destroy any Licensed Products in its
possession upon completion or termination of its activities for Licensee under such written
agreement. Licensee shall promptly notify IIPH as set forth in Section 12.2 once it becomes
aware that a particular Alliance Partner is using Licensed Products other than as permitted
under this Agreement. Licensee agrees that continued extension by Licensee of rights
pursuant to this Section 2.6 to an Alliance Partner which Licensee is aware is using such
Licensed Product other than as permitted shall constitute a material breach by Licensee
under this Agreement. Notwithstanding the foregoing, Licensee shall remain responsible for
its own, its Affiliates, and its Alliance Partners’ performance under this Agreement.

Page 6 of 22

 

			
	 	 	 
	CONFIDENTIAL
	 	EXECUTION VERSION

	2.7	 	Assurance of Supply Starting from the date of Licensee’s first exercise of a
Pre-Clinical Option and continuing for the Term, IIPH agrees to make commercially reasonable
licensing terms available to at least one Third Party supplier of Licensed Products for the
Pre-Clinical Field. If Licensee is unable to obtain, from Invitrogen or a Third Party
licensed by IIPH or Invitrogen, a supply of Licensed Products that meet reasonable
specifications for quality, quantity, or timely delivery, Licensee shall notify IIPH in
writing (in accordance with Section 12.2) of such fact and shall provide a written
explanation of such issue. In the event that IIPH or its Affiliates is unable to provide,
either directly or indirectly through a licensed Third Party supplier, a supply of Licensed
Products that meet reasonable specifications for quality, quantity, or timely delivery
within one hundred twenty (120) days following receipt of such notice, Licensee shall
have the right to make (but not have made) Licensed Products for use under the terms of
this Agreement until the earlier of such time as (i) IIPH or its Affiliates is able to
provide,
either directly or indirectly through a licensed Third Party supplier, a supply of Licensed
Products that meet reasonable specifications for quality, quantity, or timely delivery, or
(ii) this Agreement is terminated.
	 
	2.8	 	No Other Rights No other rights are provided by implication or otherwise beyond those
expressly provided in this Agreement.
	 
	2.9	 	Reservation of Rights Except as is specifically provided herein, this Agreement shall
not limit the rights of IIPH itself or through its Affiliates to practice under Licensed Patents
and to license, assign or otherwise transfer such rights to others for any purpose
whatsoever.
	 
	3.	 	Research Target Addition and Removal
	 
	3.1	 	Research Target Addition. No more than once per calendar quarter, Licensee shall
have the right to request the addition of one or more Targets to the list of Research Targets
set forth in Exhibit A by notifying IIPH in writing of the gene target name and any other
information (including the Genbank accession number, if any) useful for identifying the Target
to be added. IIPH shall respond in writing within thirty (30) days of receipt of Licensee’s
request indicating its decision to grant or withhold consent for each Target identified in
such request, such consent only to be withheld if the requested Target (i) is the subject of a
license negotiation or evaluation pursuant to a license negotiation between IIPH and a Third
Party, which negotiation or evaluation was initiated prior to Licensee’s notification of IIPH
or (ii) has been licensed to a Third Party prior to Licensee’s notification of IIPH. For those
Targets, if any, for which IIPH grants the foregoing consent, the date of Licensee’s receipt
of IIPH’s written consent (“Consent Date”) shall constitute the effective date of addition of
such Target(s) as a Research Target(s) under this Agreement. In the event that IIPH refuses
consent, it shall notify Licensee in writing that the requested Target is already subject to
either (i) a license negotiation or evaluation or (ii) a license agreement with a Third Party
as previously set forth in this paragraph. Failure by IIPH to respond or decline to grant any
request within thirty (30) days of receipt shall not be interpreted as consent by IIPH to such
request. In those cases in which IIPH has already granted to a Third Party a non-exclusive
license in the Clinical Field to a Target requested by Licensee, Licensee shall have the right
to obtain a non-exclusive license in the Clinical Field to such Target under terms and

Page 7 of 22

 

			
	 	 	 
	CONFIDENTIAL
	 	EXECUTION VERSION

	 	 	conditions equivalent to such Third Party non-exclusive license for such Target. For any
exclusive licenses or exclusive license options to Targets granted by IIPH to Third Parties
under Licensed Patents in the Clinical Field, IIPH agrees hereby to use reasonable efforts,
consistent with sound business practice, to grant such licenses or license options (as the
case will be) to such Targets under terms which are comparable or greater in value on an
aggregate basis to the terms set forth in this Agreement.
	 
	3.2	 	Research Target Removal Any existing Research Target may be removed by Licensee
from the list in Exhibit A at any time upon written notice to IIPH in accordance with Section
12.2. The removal of such Research Target shall automatically terminate all licenses and
options granted for such Research Target under this Agreement and shall become effective upon
receipt by IIPH of such written notice from Licensee. Research Targets removed from this
Agreement prior to the anniversary of the Consent Date shall not be subject to the
corresponding annual fee set forth in Section 4.2.2.
	 
	4.	 	Financial Terms
	 
	4.1	 	Upfront License Fee and Annual Maintenance Fees
	 
	 	 	4.1.1 Upfront License Fee Licensee shall pay to IIPH a non-refundable Upfront
License Fee of two hundred fifty thousand U.S. dollars ($250,000.00). The obligation to
pay such Upfront License Fee vests on the Effective Date, and Licensee shall make
payment within thirty (30) days of the Effective Date. The foregoing Upfront License Fee
shall be creditable only toward those Research Target and Option Grant Fees set forth in Section 4.2
which are due and payable in the first year of this Agreement.
	 
	 	 	4.1.2 Annual Maintenance Fee Licensee shall pay to IIPH a pre-paid, non-refundable
Annual Maintenance Fee of two hundred fifty thousand U.S. dollars ($250,000.00) no
later than October 30 each year for the Term, starting in the year 2008. Annual
Maintenance Fees due in any single year shall be creditable only toward those Research
Target and Option Fees set forth in Section 4.2 which are due and payable in the twelve
(12) months subsequent to such October 30. For clarity, Annual Maintenance Fees shall
not be creditable against any milestones or fees due under this Agreement other than the
Research Target and Option Grant Fees set forth in Section 4.2.
	 
	 	 	Licensee shall have an option to make a payment to IIPH under this Section 4.1.2 of three
hundred and seventy-five thousand dollars ($375,000.00) every year (instead of $250,000),
which shall entitle Licensee to reduce the fully stacked royalty rate otherwise due to IIPH
in Section 5.1.2 to no less than one and a half percent (1.5%) for as long as Licensee’s
yearly payments under this Section 4.1.2 continue to be three hundred and seventy-five
thousand dollars ($375,000.00). If in any year Licensee fails to pay IIPH three hundred and
seventy-five thousand dollars ($375,000.00) under this Section 4.1.2, then the fully stacked
royalty rate otherwise due to IIPH in Section 5.1.2 shall remain at or revert to no less
than two percent (2%) for the remainder of the Term.
	 
	 	 	If Licensee intends to exercise the foregoing option, Licensee shall so advise Licensor in
writing no later than forty five (45) days prior to the scheduled payment date. If Licensee
elects to reduce the payments under this Section 4.1.2 to two hundred and fifty thousand

Page 8 of 22

 

			
	 	 	 
	CONFIDENTIAL
	 	EXECUTION VERSION

	 	 	dollars ($250,000.00) per year, Licensee shall provide notice to Licensor in writing no less
than forty five (45) days prior to the next scheduled payment date. If Licensee exercises
the foregoing option, and later reduces the payments under this Section 4.1.2 to two hundred
and fifty thousand dollars ($250,000.00) per year, Licensee shall thereafter have no right
to reduce the fully stacked royalty rate below two percent (2%).
	 
	4.2	 	Research Target and Option Grant Fees
	 
	 	 	4.2.1 Upfront Research Target and Pre-Clinical Option Grant Fees Licensee shall
pay to Invitrogen a non-refundable amount of twenty-five thousand U.S. dollars
($25,000.00) for each Research Target added to this Agreement. The obligation to pay
the foregoing amount vests on the Consent Date for such Research Target, and Licensee
shall make payment within thirty (30) days of such Consent Date.
	 
	 	 	4.2.2 Annual Research Target and Pre-Clinical Option Grant Fees Licensee shall pay
to Invitrogen a non-refundable amount of twenty-five thousand U.S. dollars ($25,000.00)
per Research Target at the first and second anniversaries of the Consent Date for each
such Research Target (unless the Research Target was removed pursuant to Section 3.2).
The obligation to pay the foregoing amount vests on the anniversary of such Consent
Date, and Licensee shall make payment within thirty (30) days of such anniversary.
	 
	4.3	 	Pre-Clinical Option Exercise Fees Licensee shall pay to IIPH a non-creditable,
non-refundable amount of two hundred thousand U.S. dollars ($200,000.00) for each
Research Target for which Licensee exercises the Pre-Clinical Option granted in Section 2.2.
	 
	4.4	 	Clinical Option Exercise Fees Licensee shall pay to IIPH a non-creditable, non-
refundable amount of three hundred thousand U.S. dollars ($300,000.00) for each Pre-Clinical
Target for which Licensee exercises the Clinical Option granted in Section 2.3.2.
	 
	4.5	 	Clinical Development Milestones For each Licensed Product which reaches the following
milestones, Licensee will promptly notify IIPH in writing and, within thirty (30) days of
such notification, Licensee will pay IIPH the amount corresponding to such milestone as
follows:

	 	a.	 	Five hundred thousand U.S. dollars ($500,000.00) upon initiation of a
Phase II clinical study; and
	 
	 	b.	 	Seven hundred and fifty thousand U.S. dollars ($750,000.00) upon
initiation of a Phase III clinical study; and
	 
	 	c.	 	One million five hundred thousand U,S. dollars ($ 1,500,000.00) upon
marketing approval in the United States; and
	 
	 	d.	 	Seven hundred and fifty thousand U.S. dollars ($750,000.00) upon marketing
approval in the European Union.

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	 	 	Each of the foregoing clinical development milestone payments shall only be made for the
first Licensed Product for an individual Clinical Target which reaches the milestone event
and not for any subsequent Licensed Products for that same Clinical Target which reaches the
same milestone event.
	 
	5.	 	Royalties, Records and Reports
	 
	5.1	 	Royalties
	 
	 	 	5.1.1 Royalty Rate Licensee shall pay royalties to IIPH of three percent (3.0%) of
the Net Sales of Licensed Products covered by a Valid Claim for the Term.
	 
	 	 	5.1.2 Royalty Stacking If Licensee is a party to a license agreement with any Third
Party, which license is employed in the manufacture, use and/or sale of a Licensed
Product, Licensee may reduce the royalty rate applicable hereunder by one-half percent
(1/2%) for each one percent (1%) of royalty rate payable to such Third Party; provided,
however, that the fully stacked royalty rate due to IIPH is no less than two percent
(2.0%), except that for those years in which Licensee pays IIPH annual maintenance fees
of three hundred and seventy-five thousand dollars ($375,000.00) as set forth in
Section 4.1.2, the fully stacked royalty rate due to IIPH hereunder shall be no less than one and a
half percent (1.5%).
	 
	5.2	 	Records Licensee shall keep, and shall require its Affiliates and Alliance Partners to
keep, full, true and accurate books of account containing all particulars which may be
necessary for the purpose of showing the amount payable by way of royalty or by way of
any other provision under this Agreement. Such books and the supporting data shall be
open at all reasonable times during normal business hours and upon reasonable advance
notice, for three (3) years following the end of the calendar quarter to which they pertain
(and access shall not be denied thereafter, if such records are reasonably available), to
the inspection of an independent certified public accountant retained by IIPH and reasonably
acceptable to Licensee for the purpose of verifying Licensee’s royalty statements in
respect of sales by Licensee, its Affiliates, and/or Alliance Partners, or Licensee’s, its
Affiliates, or its Alliance Partners compliance in other respects with this Agreement.
Such inspection may take place no more often than once in any calendar year. If in
dispute, such records shall be kept until the dispute is settled. IIPH acknowledges that
the information provided by Licensee, its Affiliates, and/or Alliance Partners to any such
independent certified public accountant for inspection purposes may be confidential, and
that Licensee may require such independent certified public accountant to enter into an
appropriate confidentiality agreement that protects the confidentiality of Licensee’s, its
Affiliates, and/or Alliance Partners’ confidential information. The inspection of records
shall be at IIPH’s sole cost unless the inspector concludes that royalties reported by
Licensee for the period being audited are understated by five percent (5%) or more from
actual royalties, in which case the underpayment will be due immediately and the costs
and expenses of such inspection shall be paid by Licensee.

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	5.3	 	Reports
	 
	 	 	5.3.1 Target Status Report Licensee shall, within thirty (30) days after the first day of
January, April, July, and October of each year, deliver to the address for notices set forth
in Section 12.2 a target status report detailing any changes to the information in Exhibits
A, B, and C during the preceding three (3) calendar months, which report shall include:

	 	(i)	 	the gene target name, Genbank accession number (if any) or other
appropriate identifying information, Consent Date, and Pre-Clinical Option
Expiration Date for each Research Target in Exhibit A, and
	 
	 	(ii)	 	the gene target name, Genbank accession number (if any) or other
appropriate identifying information, Pre-Clinical Option Exercise Date, and
Clinical Option Expiration Date for each Pre-Clinical Target in Exhibit B, and
	 
	 	(iii)	 	the gene target name, Genbank accession number (if any) or other appropriate
identifying information, and Clinical Option Exercise Date for each Clinical Target
in Exhibit C.

	 	 	5.3.2 Royalty Reports Beginning upon the first sale of a Licensed Product and
continuing for the Term, Licensee shall, within thirty (30) days after the first day of
January, April, July, and October of each year, deliver to the addresses provided below a
true and accurate royalty report. This report shall specify the Net Sales in the Territory
and shall give such particulars of the business conducted by Licensee, its Affiliates, and
Alliance Partners during the preceding three (3) calendar months as are pertinent to an
accounting for royalty under this Agreement and shall include at least the following:
	 
	 	 	a) itemized quantities of Licensed Products that are sold or otherwise transferred by or for Licensee during those three (3) months;
	 
	 	 	b) Net Sales of each Licensed Product, and the deductions from gross revenues taken to generate such Net Sales;
	 
	 	 	c) the calculation of net royalties required under Section 5.1; and

	 
	 	 	d) the net royalties due.
	 
	 	 	If no royalties are due, it shall be so reported.
	 
	 	 	The correctness and completeness of each royalty report required under this Agreement shall
be attested to in writing by the responsible financial officer of Licensee’s organization or
by Licensee’s external auditor or by the chairman or other head of Licensee’s internal audit
committee.
	 
	 	 	Simultaneously with the delivery of each royalty report, Licensee shall pay to IIPH the
royalty and any other payments due under this Agreement for the period covered by such
report.

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	 	 	All amounts payable hereunder by Licensee shall be payable in United States currency and
shall be wired by the due date, in accordance with the Wire Instructions listed below.
Licensee shall be responsible for all bank transfer charges. The payment by wire will
include a specific reference to this Agreement and the applicable provision in the
“comments” field. Contemporaneously, Licensee shall provide the royalty report to the
following address or to such other address as IIPH may designate from time to time:

	 	 	 	 	 
	 	 	Wire Instructions
	 

	 	Bank Name:
	 	Bank of America NT & SA
	 

	 	Bank Address:
	 	1850 Gateway Boulevard
	 

	 	 	 	Concord, CA USA 94520
	 

	 	ABA:
	 	0260-0959-3
	 

	 	S.W.I.F.T.
	 	BOFA US 3N
	 

	 	Telex:
	 	MCI 65652 BANKAMER SFO
	 

	 	For Credit:
	 	IIPH IP Holdings, Inc.
	 

	 	Account Number:
	 	14594.02945
	 
	 	 	 	 
	A copy of the royalty report shall also be sent to:
	 
	 	 	 	 
	 	 	IIPH IP Holding Inc.
	 	 	c/o Invitrogen Corporation
	 	 	1600 Faraday Avenue
	 	 	Carlsbad, California USA 92008
	 	 	Attention: Contracts Department
	 	 	Telephone: 800-955-6288
	 	 	Facsimile: 760-476-6326

	5.4	 	Currency Conversion When a Licensed Product is sold for compensation for other than
United States dollars, conversion of foreign currency to United States dollars shall be
made in the same manner as the Licensee, or if applicable, the Alliance Partner converts
all of its other revenues, provided that (a) such manner is consistent with United States
generally accepted accounting principles, and (b) the exchange rates employed are those
quoted by a reputable source, such as a recognized money center bank such as JP
Morgan, Bank of America or an equivalent, 0ANDA.com, or the Wall Street Journal.
Such payments will be made without deduction of exchange, collection or other charges.
	 
	5.5	 	Taxes Withholding tax, if any, levied on any royalty and/or on any other payments to
be paid hereunder, will be withheld from such payment and instead paid by Licensee to the
proper taxing authority, and proof of all such payments will be sent to IIPH.
	 
	5.6	 	Overdue Payments Any amount not being paid by Licensee when due will bear interest at
a rate of three percent (3%) over the prime rate then offered by Citibank N.A. from the
due date until paid.
	 
	6.	 	Term and Termination
	 
	6.1	 	Term This license is granted to Licensee as of the Effective Date and will
expire upon the expiration of the last to expire of the patents within Licensed Patents,
unless this

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	 	EXECUTION VERSION

	 	 	Agreement is earlier terminated in which case the period shall end at the date of
termination.
	 
	6.2	 	Termination by Licensee Licensee may terminate this Agreement without specification
of any reason upon sixty (60) days’ written notice to IIPH.
	 
	6.3	 	Automatic Termination The license granted hereunder to Licensee and any rights
extended by Licensee to Affiliates or Alliance Partners shall automatically terminate
upon:

	 	 	 	(a) an adjudication of Licensee as bankrupt or insolvent, or Licensee’s
admission in writing of its inability to pay its obligations as they mature; or
	 
	 	 	 	(b) an assignment by Licensee for the benefit of creditors; or
	 
	 	 	 	(c) Licensee’s applying for or consenting to the appointment of a receiver, trustee or
similar officer for any substantial part of its property or such receiver, trustee or
similar officer’s appointment without the application or consent of Licensee, if such
appointment shall continue undischarged for a period of ninety (90) days; or
	 
	 	 	 	(d) Licensee’s instituting (by petition, application, answer, consent or otherwise) any
bankruptcy, insolvency arrangement, or similar proceeding relating to Licensee under
the laws of any jurisdiction; or
	 
	 	 	 	(e) the institution of any such proceeding (by petition, application or otherwise)
against Licensee, if such proceeding shall remain undismissed for a period of ninety
(90) days or the issuance or levy of any judgment, writ, warrant of attachment or
execution or similar process against a substantial part of the property of Licensee, if
such judgment, writ, or similar process shall not be released, vacated or fully bonded
within ninety (90) days after its issue or levy.

	 	 	Any rights conveyed hereunder by Licensee to any Affiliate or Alliance Partner shall be
terminated automatically upon any such entity undergoing any of the events set forth in
(a) through (e) above.
	 
	6.4	 	Termination by IIPH Upon any material breach or default under this Agreement by
Licensee, its Affiliate, or an Alliance Partner, including the failure to pay any money
owed under this Agreement, this Agreement may be terminated by IIPH upon sixty (60)
days written notice to Licensee, provided IIPH has provided an additional notice of
pending termination no less than fifteen (15) calendar days prior to the effective
termination date. Said termination shall become effective at the end of the sixty-day
period, unless during said period Licensee fully cures or causes the breaching Affiliate or
Alliance Partner to cure, such breach or default and notifies IIPH in writing of such cure.
	 
	6.5	 	Consequences of Termination
	 
	 	 	(a) Upon termination of this Agreement as provided herein, Licensee shall immediately
stop, and shall cause its Affiliates and Alliance Partners to immediately stop,

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	 	EXECUTION VERSION

	 	 	exercising any rights under this Agreement. All rights and licenses granted to Licensee by
IIPH hereunder and all rights extended by Licensee to Affiliates or Alliance Partners shall
automatically terminate.
	 
	 	 	(b) Licensee’s obligations to report to IIPH and to pay royalties as to the sale of
Licensed Products hereunder pursuant to this Agreement prior to termination or
expiration of this Agreement shall survive such termination or expiration.
	 
	 	 	(c) Upon termination of this Agreement for material breach or default by Licensee,
Licensee and, if applicable, its Affiliates and Alliance Partners, shall destroy its and
their inventory of Licensed Products and confirm such destruction in writing within sixty (60)
days of the termination of this Agreement.
	 
	7.	 	Enforcement of Patents
	 
	7.1	 	With respect to all Targets licensed hereunder, Licensee shall advise IIPH promptly in
writing upon its becoming aware of infringement by a Third Party or Parties of a patent within
Licensed Patents in the Territory. Upon receipt of said written information, IIPH shall take
such action as it deems appropriate, in its sole discretion, with respect to such
infringement. Neither IIPH nor any of its Affiliates shall be obligated to sue any infringer.
	 
	8.	 	Confidentiality; Publicity
	 
	8.1	 	Confidentiality Each Party shall (i) maintain the terms of this Agreement
(“Confidential Information”) in confidence during and for a period of five (5) years after the termination
of this Agreement, (ii) shall limit dissemination to those of its employees, Affiliates, or
Alliance Partners who require such Confidential Information in order to perform their
respective duties under this Agreement, (iii) shall not disclose such Confidential
Information to any other person or entity, and (iv) shall use such Confidential
Information only to the extent necessary to perform this Agreement. Notwithstanding any
other provision of this Agreement, Confidential Information shall not include any item of
information which: (a) is within the public domain prior to the time of the disclosure by
the disclosing Party or thereafter becomes within the public domain other than as a result
of disclosure by the receiving Party or any of its representatives in violation of this
Agreement; (b) was, on or before the date of disclosure in the possession of the receiving
Party, as evidenced by records, however maintained; (c) is acquired by the receiving
Party from a third party having the right to disclose without burden of confidentiality; (d)
is hereafter independently developed by the receiving Party, as evidenced by records,
however maintained; or (e) the receiving Party is compelled to disclose by order of a
court of competent jurisdiction, provided that such disclosure is subject to all applicable
governmental or judicial protection available for like material and reasonable advance
notice is given to the other Party.
	 
	8.2	 	Press Release Each Party has the right to issue a press release pertaining to this
Agreement. In the event that a Party desires to issue a press release, such Party (the
“Issuing Party”) will provide the text of such press release in writing for approval by the
other Party (“Receiving Party”), such approval not to be unreasonably withheld. The

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	 	 	Receiving Party will be deemed to have assented to the text provided by the Issuing
Party, unless its objections have been received by the Issuing Party within ten (10)
business days from the Receiving Party’s receipt of the draft press release.
	 
	9.	 	Assignment/Transferability
	 
	9.1	 	Assignment by Licensee The rights and licenses granted by IIPH to Licensee in this
Agreement are specific to Licensee and may not be assigned or otherwise transferred,
except to an Affiliate, without the prior written agreement of IIPH, which agreement may
be withheld at IIPH’s sole discretion. IIPH shall have the right to terminate this
Agreement in the event that this Agreement is assigned, or otherwise transferred to any
party who is not an Affiliate of Licensee other than as set forth in this Section 9.1. When
and if Licensee undergoes a change in Control, IIPH hereby agrees to not terminate this
Agreement if, within thirty (30) days of the effective date of such change in Control,
IIPH has received a fee of two hundred fifty thousand U.S. dollars ($250,000.00). IIPH
further agrees to not withhold consent to any transfer to any non Affiliate of Licensee
upon receipt of an assignment fee of two hundred fifty thousand U.S. dollars
($250,000.00). Any permitted assignment or other transfer will be expressly conditioned
on the written agreement of the assignee/transferee to assume all of the obligations of
Licensee hereunder. Any assignment or other transfer other than as expressly set forth in
this Section 9.1 shall be null and void.
	 
	9.2	 	Assignment by IIPH IIPH may assign all or any part of its rights and obligations under
this Agreement at any time without the consent of Licensee. Licensee agrees to execute
such further acknowledgments or other instruments as IIPH may reasonably request in
connection with such assignment.
	 
	10.	 	Representations and Warranties
	 
	10.1	 	Representations Each Party represents and warrants to the other that (a) such Party
is a company or corporation duly organized, validly existing and in good standing under the
laws of the jurisdiction in which it is organized; (b) such Party has the legal power and
authority to execute, deliver and perform this Agreement; (c) the execution, delivery and
performance by such Party of this Agreement has been duly authorized by all necessary
corporate action; (d) this Agreement constitutes the legal, valid and binding obligation of
such Party, enforceable against such Party in accordance with its terms; and (e) the
execution, delivery and performance of this Agreement will not cause or result in a
violation of any law, of such Party’s charter documents, or of any contract by which such
Party is bound.
	 
	10.2	 	Negation of Warranties Nothing in this Agreement shall be construed as:
	 
	 	 	a) a warranty or representation by IIPH or its Affiliates as to the validity or scope of any

patent included within Licensed Patents; or
	 
	 	 	b) a warranty or representation by IIPH or its Affiliates that the practice of Licensed

Patents is or will be free from infringement of patents of third parties; or

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	 	EXECUTION VERSION

	 	 	c) an obligation on IIPH or its Affiliates to bring or prosecute actions or suits
against third parties for infringement; or
	 
	 	 	d) except as expressly set forth herein, conferring the right to use in advertising,
publicity
or otherwise any trademark, trade name, or names, or any contraction, abbreviation,
simulation or adaptation thereof, of IIPH or its Affiliates; or
	 
	 	 	e) conferring by implication, estoppel or otherwise any licenses, immunities or rights
under any patents or patent applications of IIPH or its Affiliates other than those
specified
in Licensed Patents, regardless of whether such other patents or patent applications are
dominant or subordinate to those in Licensed Patents; or
	 
	 	 	f) an obligation on IIPH or its Affiliates to furnish any know-how not provided in Licensed Patents.
	 
	10.3	 	No Warranty IIPH HEREBY DISCLAIMS ANY EXPRESS OR IMPLIED
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT SHALL EITHER
PARTY OR ITS AFFILIATES BE LIABLE HEREUNDER TO THE OTHER PARTY, ITS AFFILIATES, OR ANY OTHER
PERSON OR ENTITY FOR SPECIAL, INCIDENTAL, CONSEQUENTIAL, EXEMPLARY OR OTHER INDIRECT DAMAGES
(INCLUDING, BUT NOT LIMITED TO, LOSS OF PROFITS OR LOSS OF USE DAMAGES) INCURRED BY THE
OTHER AND ARISING FROM ANY USE OF LICENSED PRODUCTS EVEN IF SUCH PARTY HAS BEEN ADVISED OF
THE POSSIBILITY OF SUCH DAMAGES OR LOSSES.
	 
	11.	 	Indemnity
	 
	11.1	 	Licensee shall assume full responsibility for its, its Affiliates, and its Alliance
Partners’ use of the Licensed Patents hereunder and for the manufacture, use, and/or sale or
other transfer of Licensed Products hereunder. Licensee shall defend, indemnify and hold
harmless IIPH and its Affiliates and its and their respective officers, directors, agents,
employees and stockholders, from and against any and all liability, demands, damages, expenses
(including reasonable attorneys’ and expert witness fees and expenses) and losses for death,
personal injury, illness or property damage, infringement of intellectual property, or any
other injury or damage arising out of the preparation, use, or sale of Licensed Products,
including but not limited to, use or reliance upon such Licensed Products by Customers of
Licensee, its Affiliates, and its Alliance Partners or other Third Parties.
	 
	12.	 	General
	 
	12.1	 	Entire Agreement This Agreement and its Exhibits A, B, and C constitutes
the entire agreement between IIPH and Licensee as to the subject matter hereof, and all prior
negotiations, representations, agreements, and understandings are merged into, extinguished by
and completely expressed by it. This Agreement may be modified or amended only by a writing
executed by authorized officers of each of the Parties.

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	12.2	 	Notices Any notice required or permitted to be given by this Agreement shall be given by
postpaid, first class, registered or certified mail, or by courier or facsimile (if such
facsimile is confirmed by registered, next day delivery, certified or courier mail),
properly addressed to the other Party or Parties at the respective address as shown below.
	 
	 	 	If to Licensee:

RXi Corporation

One Innovation Drive

Worcester, Massachusetts 01605

U.S.A.

Attention: Tod Woolf, President and CEO

	 	 	If to IIPH:

Invitrogen Corporation

1600 Faraday Avenue

Carlsbad, CA 92008

U.S.A

Attention: Contracts Department

With a copy to General Counsel at the same address.

	 	 	Either Party may change its address by providing notice to the other Party. Unless otherwise
specified herein, any notice given in accordance with the foregoing shall be deemed given
within four (4) full business days after the day of mailing, or one full day after the date
of delivery to the courier, as the case will be.
	 
	12.3	 	Governing Law This Agreement and its effect are subject to and shall be construed and
enforced in accordance with the law of the State of California U.S.A., except as to any
issue which depends upon the validity, scope or enforceability of any patent within
Licensed Patents which issue shall be determined in accordance with the laws of the
territory in which such Licensed Patents exist.
	 
	12.4	 	Conflicts with Law Nothing in this Agreement shall be construed so as to require the
commission of any act contrary to law, and wherever there is any conflict between any
provision of this Agreement or concerning the legal right of the Parties to enter into this
Agreement and any statute, law, ordinance or treaty, the latter shall prevail, but in such
event the affected provisions of this Agreement shall be curtailed and limited only to the
extent necessary to bring it within the applicable legal requirements.
	 
	12.5	 	Unenforceability of Terms If any provision of this Agreement is held to be
unenforceable for any reason, it shall be adjusted rather than voided, if possible, in order
to achieve the intent of the Parties to the extent possible. In any event, all other
provisions of this Agreement shall be deemed valid and enforceable to the full extent
possible.

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	12.6	 	Counterparts This Agreement may be signed in two or more counterparts, all of which
together shall constitute one and the same Agreement, binding on the Parties as if each
had signed the same document.
	 
	12.7	 	Relationship The relationship of the Parties is that of independent contractors, and
nothing herein shall be construed as establishing one Party or its Affiliates as the agent,
legal representative, joint venturer, partner, employee, or servant of the other Party or
its Affiliates. Except as set forth herein, neither Party shall have any right, power or
authority to assume, create or incur any expense, liability or obligation, express or
implied, on behalf of the other Party or its Affiliates. Neither Party shall hold itself out
as being the agent, legal representative, joint venturer, partner, employee, or servant of the
other Party or as having authority to represent or act for the other Party in any capacity
whatsoever, except as authorized herein.
	 
	12.8	 	Bankruptcy Code 365(n) The Parties acknowledge and agree that this Agreement is for
the purposes of Section 365(n) of the United States Bankruptcy Code a license of rights
to “intellectual property” as defined under Section 101(56) of the U.S. Bankruptcy Code.
Except as expressly permitted by this Agreement, this Agreement cannot be assumed or
assumed and assigned by a trustee or debtor-in-possession in bankruptcy as set forth in
Section 365(c)(l) of the United States Bankruptcy Code or any similar provisions of state
or federal law.
	 
	12.9	 	Arbitration Any controversy or claim arising out of or relating to this Agreement, or
the breach thereof, shall be settled by arbitration in California administered by the American
Arbitration Association in accordance with its applicable rules, and judgment on the
award rendered by the arbitrator may be entered in any court having jurisdiction thereof.
The administrative charges, arbitrators’ fees, and related expenses of any arbitration shall
be paid equally by the Parties, but each Party shall be responsible for any costs or
expenses incurred in presenting such Party’s case to the arbitrators, such as attorney’s
fees or expert witness fees.
	 
	12.10	 	Export Control Licensee hereby agrees to comply with all applicable U.S. export
control and economic sanctions laws, regulations, and orders, including without limitation those
regulations maintained by the U.S. Treasury Department’s Office of Foreign Assets
Control (“OFAC”), the U.S. Commerce Department’s Bureau of Industry and Security
(“BIS”). Without limiting the foregoing, Licensee understands and covenants that it shall
not, directly or indirectly, sell, export, reexport, transfer, divert, or otherwise release
or dispose of any equipment, product, commodities, services, software, samples, materials,
information, technical data, or technology (collectively “the Items”) received under this
Agreement to or through any individual, entity, or destination, or for use prohibited by
the laws or regulations of the United States or any other applicable jurisdiction without
having obtained prior authorization from the competent governmental authorities as
required by all such laws and regulations. Licensee’s breach of this provision shall
constitute cause for immediate termination of this Agreement. Licensee agrees to indemnify
and hold harmless IIPH and its Affiliates for Licensee’s noncompliance with these
controls in connection with the Items.

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	12.11	 	Surviving Provisions All rights and obligations of the Parties set forth herein
that expressly or by their nature survive the expiration or termination of this Agreement,
including, without limitation, Article 4 to the extent that payment obligations existing
before expiration or termination of this Agreement remain unmet upon expiration or termination
of this Agreement, Articles 1, 8, 9,10, 11,12 and Sections 2.9 and 6.5 shall continue in full
force and effect subsequent to, and notwithstanding the expiration or termination of this
Agreement until they are satisfied or by their nature expire and shall bind the Parties and
their legal representatives, successors, and permitted assigns.

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

	 	 	 	 	 	 	 	 	 	 	 
	INVITROGEN IP HOLDINGS INC.	 	RXI CORPORATION
	 
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Stuart P. Hepburn
	 	 
	 	By:
	 	/s/ Tod Woolf
	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Stuart P. Hepburn
	 	 	 	Name:
	 	Tod Woolf	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	President
	 	 	 	Title:
	 	President and CEO	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	11/1/07
	 	 	 	Date:
	 	11/1/07	 	 
	 

	 	 
	 	 	 	 	 	 	 	 

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Exhibit A

Research Targets

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Gene Target Name/ID	 	GenBank Accession Number (if any)	 	Consent Date	 	Pre-Clinical Option Expiration Date
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 

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Exhibit B

Pre-Clinical Targets

	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	Gene Target Name/ID	 	GenBank Accession Number (if any)	 	Pre-Clinical Option Exercise Date	 	Clinical Option Expiration Date
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 

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	CONFIDENTIAL
	 	EXECUTION VERSION

Exhibit C

Clinical Targets

	 	 	 	 	 
	 	 	 	 	 
	Gene Target Name/ID	 	GenBank Accession Number (if any)	 	Clinical Option Exercise Date
	 

	 	 
	 	 
	 

	 	 
	 	 
	 

	 	 
	 	 
	 

	 	 
	 	 
	 

	 	 
	 	 
	 

	 	 
	 	 
	 

	 	 
	 	 
	 

	 	 
	 	 
	 

	 	 
	 	 
	 

	 	 
	 	 
	 

	 	 
	 	 

Page 22 of 22

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00135-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00135-of-00352.parquet"}]]