Document:

exv10w33

Exhibit 10.33

 

ARADIGM CORPORATION

and

COMPUTERSHARE TRUST COMPANY, N.A.

as Rights Agent

Amended and Restated Rights Agreement

Dated as of September 5, 2008

 

 

 

Amended and Restated Rights Agreement

     This Amended and Restated Rights Agreement (“Agreement”), dated as of September 5, 2008,
between Aradigm Corporation, a California corporation (the “Company”), and Computershare Trust
Company, N.A. (“Rights Agent”).

     The Board of Directors of the Company (the “Board of Directors”) has authorized and declared a
dividend of one preferred share purchase right (a “Right”) for each Common Share (as such term is
hereinafter defined) outstanding at the close of business on September 8, 1998 (the “Record Date”),
each Right representing the right to purchase one one-hundredth of a Preferred Share (as such term
is hereinafter defined), upon the terms and subject to the conditions herein set forth, and has
further authorized and directed the issuance of one Right with respect to each Common Share that
shall become outstanding between the Record Date and the earliest to occur of the Distribution
Date, the Redemption Date and the Final Expiration Date (as such terms are hereinafter defined);
provided, however, that Rights may be issued with respect to Common Shares that shall become
outstanding after the Distribution Date and prior to the earlier of the Redemption Date and the
Final Expiration Date in accordance with the provisions of Section 22 hereof.

     This Agreement amends and restates that certain Rights Agreement, dated as of August 31, 1998,
as amended, between the Company and the Rights Agent.

     Accordingly, in consideration of the premises and the mutual agreements herein set forth, the
parties hereby agree as follows:

	Section 1.	 	 Certain Definitions. For purposes of this Agreement, the following terms have the
meanings indicated:

	 	(a)	 	“Acquiring Person” shall mean any Person (as such term is
hereinafter defined) who or which, together with all Affiliates and Associates
(as such terms are hereinafter defined) of such Person, shall be the Beneficial
Owner (as such term is hereinafter defined) of 15% or more of the Common Shares
then outstanding. Notwithstanding the foregoing, (A) the term Acquiring Person
shall not include (i) the Company, (ii) any Subsidiary (as such term is
hereinafter defined) of the Company, (iii) any employee benefit or compensation
plan of the Company or any Subsidiary of the Company, (iv) any entity holding
Common Shares for or pursuant to the terms of any such employee benefit or
compensation plan, (v) any Person, together with all Affiliates and Associates
of such Person, who is the Beneficial Owner of 15% or more of the Common Shares
outstanding as of the date of this Agreement until such time after the date of
this Agreement that such Person, together with all Affiliates and Associates of
such Person, shall become the Beneficial Owner of any additional Common Shares
(other than by means of a dividend made by the Company on the Common Shares
outstanding or pursuant to a split, subdivision or other reclassification of
the Common Shares undertaken by the Company) and shall then beneficially own
more than 15% of the Common Shares outstanding, and (B) no Person shall become
an

1

 

	 	 	 	“Acquiring Person” either (x) as the result of an acquisition of Common
Shares by the Company which, by reducing the number of shares outstanding,
increases the proportionate number of shares beneficially owned by such
Person to 15% or more of the Common Shares then outstanding; provided,
however, that if a Person shall become the Beneficial Owner of 15% or more
of the Common Shares then outstanding by reason of share purchases by the
Company and shall, following written notice from, or public disclosure by
the Company of such share purchases by the Company, become the Beneficial
Owner of any additional Common Shares without the prior consent of the
Company and shall then Beneficially Own more than 15% of the Common Shares
then outstanding, then such Person shall be deemed to be an “Acquiring
Person,” (y) if the Board of Directors determines in good faith that a
Person who would otherwise be an “Acquiring Person,” as defined pursuant to
the foregoing provisions of this paragraph (a), has become such
inadvertently, and such Person divests, as promptly as practicable (as
determined in good faith by the Board of Directors), but in any event within
five Business Days, following receipt of written notice from the Company of
such event, of Beneficial Ownership of a sufficient number of Common Shares
so that such Person would no longer be an Acquiring Person, as defined
pursuant to the foregoing provisions of this paragraph (a), then such Person
shall not be deemed to be an “Acquiring Person” for any purposes of this
Agreement; provided, however, that if such Person shall again become the
Beneficial Owner of 15% or more of the Common Shares then outstanding, such
Person shall be deemed an “Acquiring Person,” or (z) as the result of the
acquisition of Common Shares directly from the Company or through one or
more underwriters or dealers participating in an underwritten public
offering by the Company; provided, however, that if a Person shall become
the Beneficial Owner of 15% or more of the Common Shares then outstanding by
reason of share purchases directly from the Company or through one or more
underwriters or dealers participating in an underwritten public offering by
the Company and shall, after that date, become a Beneficial Owner of any
additional Common Shares without the prior written consent of the Company
and shall then Beneficially Own more than 15% of the Common Shares then
outstanding, then such Person shall be deemed to be an “Acquiring Person.”
	 
	 	(b)	 	“Affiliate” and “Associate” shall have the respective meanings
ascribed to such terms in Rule 12b-2 of the General Rules and Regulations under
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as in
effect on the date of this Agreement; provided, however, that the limited
partners of a limited partnership shall not be deemed to be Associates of such
limited partnership solely by virtue of their limited partnership interests.
	 
	 	(c)	 	A Person shall be deemed the “Beneficial Owner” of and shall be
deemed to “beneficially own” any securities:

2

 

	 	(i)	 	that such Person or any of such Person’s
Affiliates or Associates is deemed to beneficially own, within the
meaning of Rule 13d-3 of the General Rules and Regulations under the
Exchange Act as in effect on the date of this Rights Agreement;
	 
	 	(ii)	 	that such Person or any of such Person’s
Affiliates or Associates has (A) the right to acquire (whether such
right is exercisable immediately or only after the passage of time)
pursuant to any agreement, arrangement or understanding (other than
customary agreements with and between underwriters and selling group
members with respect to a bona fide public offering of securities), or
upon the exercise of conversion rights, exchange rights, rights (other
than these Rights), warrants or options, or otherwise; provided,
however, that a Person shall not be deemed the Beneficial Owner of, or
to beneficially own, securities tendered pursuant to a tender or
exchange offer made by or on behalf of such Person or any of such
Person’s Affiliates or Associates until such tendered securities are
accepted for purchase or exchange; or (B) the right to vote pursuant to
any agreement, arrangement or understanding; provided, however, that a
Person shall not be deemed the Beneficial Owner of, or to beneficially
own, any security if the agreement, arrangement or understanding to
vote such security (1) arises solely from a revocable proxy or consent
given to such Person in response to a public proxy or consent
solicitation made pursuant to, and in accordance with, the applicable
rules and regulations promulgated under the Exchange Act and (2) is not
also then reportable on Schedule 13D under the Exchange Act (or any
comparable or successor report); or
	 
	 	(iii)	 	that are beneficially owned, directly or
indirectly, by any other Person with which such Person or any of such
Person’s Affiliates or Associates has any agreement, arrangement or
understanding (other than customary agreements with and between
underwriters and selling group members with respect to a bona fide
public offering of securities) for the purpose of acquiring, holding,
voting (except to the extent contemplated by the proviso to Section
1(c)(ii)(B) hereof) or disposing of any securities of the Company.

	 	 	 	Notwithstanding anything in this definition of Beneficial Ownership to the
contrary, the phrase, “then outstanding,” when used with reference to a
Person’s Beneficial Ownership of securities of the Company, shall mean the
number of such securities then issued and outstanding together with the
number of such securities not then actually issued and outstanding which
such Person would be deemed to own beneficially hereunder.
	 
	 	(d)	 	“Business Day” shall mean any day other than a Saturday, a
Sunday, or a day on which banking institutions in the Commonwealth of
Massachusetts

3

 

	 	 	 	are authorized or obligated by law or executive order to close.
	 
	 	(e)	 	“Close of Business” on any given date shall mean 5:00 p.m.,
Eastern Time, on such date; provided, however, that if such date is not a
Business Day it shall mean 5:00 p.m., Eastern Time, on the next succeeding
Business Day.
	 
	 	(f)	 	“Common Shares” shall mean the shares of common stock, no par
value, of the Company; provided, however, that, “Common Shares,” when used in
this Agreement in connection with a specific reference to any Person other than
the Company, shall mean the capital stock (or equity interest) with the
greatest voting power of such other Person or, if such other Person is a
Subsidiary of another Person, the Person or Persons which ultimately control
such first-mentioned Person.
	 
	 	(g)	 	“Distribution Date” shall have the meaning set forth in Section
3 hereof.
	 
	 	(h)	 	“Final Expiration Date” shall have the meaning set forth in
Section 7 hereof.
	 
	 	(i)	 	“Interested Shareholder” shall mean any Acquiring Person or any
Affiliate or Associate of an Acquiring Person or any other Person in which any
such Acquiring Person, Affiliate or Associate has an interest, or any other
Person acting directly or indirectly on behalf of or in concert with any such
Acquiring Person, Affiliate or Associate.
	 
	 	(j)	 	“Person” shall mean any individual, firm, corporation or other
entity, and shall include any successor (by merger or otherwise) of such
entity.
	 
	 	(k)	 	“Preferred Shares” shall mean shares of Series A Junior
Participating Preferred Stock, without par value, of the Company having the
designations and the powers, preferences and rights, and the qualifications,
limitations and restrictions set forth in the form of Certificate of
Determination filed with the Secretary of State of the State of California on
August 31, 1998, as subsequently amended.
	 
	 	(l)	 	“Purchase Price” shall have the meaning set forth in Section
7(b) hereof.
	 
	 	(m)	 	“Redemption Date” shall have the meaning set forth in Section 7
hereof.
	 
	 	(n)	 	“Shares Acquisition Date” shall mean the first date of public
announcement by the Company or an Acquiring Person that an Acquiring Person has
become such; provided, however that, if such Person is determined not to have
become an Acquiring Person pursuant to clause (y) of Subsection 1(a)(B) hereof,
then no Shares Acquisition Date shall be deemed to have occurred.
	 
	 	(o)	 	“Subsidiary” of any Person shall mean any corporation or other
entity of which a majority of the voting power of the voting equity securities
or equity interest is owned, directly or indirectly, by such Person.

4

 

	 	(p)	 	“Transaction” shall mean any merger, consolidation or sale of
assets
described in Section 13(a) hereof or any acquisition of Common Shares which
would result in a Person becoming an Acquiring Person or a Principal Party
(as such term is hereinafter defined).
	 
	 	(q)	 	“Transaction Person” with respect to a Transaction shall mean
(i) any Person who (x) is or will become an Acquiring Person or a Principal
Party (as such term is hereinafter defined) if the Transaction were to be
consummated and (y) directly or indirectly proposed or nominated a director of
the Company which director is in office at the time of consideration of the
Transaction, or (ii) an Affiliate or Associate of such a Person.

	Section 2.	 	 Appointment of Rights Agent. The Company hereby appoints the
Rights Agent to act as agent for the Company in accordance with
the terms and conditions hereof, and the Rights Agent hereby
accepts such appointment. The Company may from time to time
appoint such co-Rights Agents as it may deem necessary or
desirable, upon ten (10) days’ prior written notice to the
Rights Agent. The Rights Agent shall have no duty to
supervise, and in no event be liable for, the acts or omissions
of any such co-Rights Agent.
	 
	Section 3.	 	 Issue of Right Certificates.

	 	(a)	 	Until the earlier of the Close of Business on (i) the Shares
Acquisition Date or (ii) the tenth Business Day (or such later date as may be
determined by action of the Board of Directors prior to such time as any Person
becomes an Acquiring Person) after the date of the commencement (determined in
accordance with Rule 14d-2 under the Exchange Act) by any Person (other than
the Company, any Subsidiary of the Company, any employee benefit plan of the
Company or of any Subsidiary of the Company or any entity holding Common Shares
for or pursuant to the terms of any such plan) of, or of the first public
announcement of the intention of any Person (other than the Company, any
Subsidiary of the Company, any employee benefit plan of the Company or of any
Subsidiary of the Company or any entity holding Common Shares for or pursuant
to the terms of any such plan) to commence, a tender or exchange offer (which
intention to commence remains in effect for five Business Days after such
announcement), the consummation of which would result in any Person becoming an
Acquiring Person (including any such date which is after the date of this
Agreement and prior to the issuance of the Rights, the earlier of such dates
being herein referred to as the “Distribution Date”), (x) the Rights will be
evidenced by the certificates for Common Shares registered in the names of the
holders thereof (which certificates shall also be deemed to be Right
Certificates) and not by separate Right Certificates, and (y) the Rights (and
the right to receive Right Certificates therefor) will be transferable only in
connection with the transfer of Common Shares. As soon as practicable after
the Distribution Date, the Company will prepare and execute, the Rights Agent
will countersign, and the Company will send or cause to be sent (and the

5

 

	 	 	 	Rights Agent will, if requested, send) by first-class, insured,
postage-prepaid mail, to each record holder of Common Shares as of the Close
of Business on the Distribution Date, at the address of such holder shown on
the records of the Company, a Right Certificate, in substantially the form
of Exhibit A hereto (a “Right Certificate”), evidencing one Right for each
Common Share so held, subject to the adjustment provisions of Section 11 of
this Rights Agreement. As of the Distribution Date, the Rights will be
evidenced solely by such Right Certificates.
	 
	 	(b)	 	On the Record Date, or as soon as practicable thereafter, the
Company will send (directly or through the Rights Agent or its transfer agent)
a copy of a Summary of Rights to Purchase Preferred Shares, in substantially
the form of Exhibit B hereto (the “Summary of Rights”), by first-class,
postage-prepaid mail, to each record holder of Common Shares as of the Close of
Business on the Record Date, at the address of such holder shown on the records
of the Company. With respect to certificates for Common Shares outstanding as
of the Record Date, until the Distribution Date, the Rights will be evidenced
by such certificates registered in the names of the holders thereof. Until the
Distribution Date (or the earlier of the Redemption Date and the Final
Expiration Date), the surrender for transfer of any certificate for Common
Shares outstanding on the Record Date shall also constitute the transfer of the
Rights associated with the Common Shares represented thereby.
	 
	 	(c)	 	Certificates for Common Shares which become outstanding
(including, without limitation, reacquired Common Shares referred to in the
last sentence of this paragraph (c)) after the Record Date but prior to the
earliest of the Distribution Date, the Redemption Date or the Final Expiration
Date shall have impressed on, printed on, written on or otherwise affixed to
them the following legend:

This certificate also evidences and entitles the holder
hereof to certain rights as set forth in an amended and
restated Rights Agreement between Aradigm Corporation (the
“Company”) and Computershare Trust Company, N.A. as Rights
Agent (the “Rights Agent”), dated as of September 5, 2008, as
amended from time to time (the “Rights Agreement”), the terms
of which are hereby incorporated herein by reference and a
copy of which is on file at the principal executive offices
of the Company. Under certain circumstances, as set forth in
the Rights Agreement, such Rights will be evidenced by
separate certificates and will no longer be evidenced by this
certificate. The Company will mail to the holder of this
certificate a copy of the Rights Agreement without charge
after receipt of a written request therefor. As described in
the Rights Agreement, Rights issued to any Person who becomes
an Acquiring Person or an Affiliate or Associate thereof (as
defined in the Rights Agreement) and certain related persons,
whether

6

 

currently held by or on behalf of such Person or by any
subsequent holder, shall become null and void.

	 	 	 	With respect to such certificates containing the foregoing legend, until the
Distribution Date (or, if earlier, the earlier of the Redemption Date or the
Final Expiration Date), the Rights associated with the Common Shares
represented by such certificates shall be evidenced by such certificates
alone, and the surrender for transfer of any such certificate shall also
constitute the transfer of the Rights associated with the Common Shares
represented thereby. In the event that the Company purchases or acquires
any Common Shares after the Record Date but prior to the Distribution Date,
any Rights associated with such Common Shares shall be deemed canceled and
retired so that the Company shall not be entitled to exercise any Rights
associated with the Common Shares which are no longer outstanding.
Notwithstanding this Section 3(c), the omission of a legend shall not affect
the enforceability of any part of this Rights Agreement or the rights of any
holder of the Rights.

	Section 4.	 	 Form of Right Certificates.

	 	(a)	 	The Right Certificates (and the form of election to purchase
Preferred Shares, the form of assignment and the form of certification to be
printed on the reverse thereof) shall be substantially the same as Exhibit A
hereto and may have such marks of identification or designation and such
legends, summaries or endorsements printed thereon as the Company may deem
appropriate and as are not inconsistent with the provisions of this Agreement,
or as may be required to comply with any applicable law or with any rule or
regulation made pursuant thereto or with any rule or regulation of any stock
exchange or quotation system on which the Rights may from time to time be
listed, or to conform to usage. Subject to the provisions of Sections 7, 11
and 22 hereof, the Right Certificates shall entitle the holders thereof to
purchase such number of one one-hundredths of a Preferred Share as shall be set
forth therein at the Purchase Price (as defined in Section 7(b)), but the
number of such one one-hundredths of a Preferred Share and the Purchase Price
shall be subject to adjustment as provided herein.
	 
	 	(b)	 	Any Right Certificate issued pursuant to Section 3(a) or
Section 22 hereof that represents Rights which are null and void pursuant to
the second paragraph of Section 11(a)(ii) hereof and any Right Certificate
issued pursuant to Section 6 or Section 11 hereof upon transfer, exchange,
replacement or adjustment of any other Right Certificate referred to in this
sentence, shall contain (to the extent feasible) the following legend:

The Rights represented by this Right Certificate are
or were beneficially owned by a Person who was or
became an Acquiring Person or an Affiliate or
Associate of an Acquiring Person (as such terms are
defined in the Rights Agreement). Accordingly, this

7

 

Right Certificate and the Rights represented hereby
are null and void.

The provisions of Section 11(a)(ii) hereof shall be operative whether or not
the foregoing legend is contained on any such Right Certificate.

	Section 5.	 	 Countersignature and Registration. The Right Certificates shall be executed on behalf
of the Company by its Chairman of the Board, its Chief Executive Officer, its President, its
Vice Chairman of the Board, its Chief Financial Officer, or any of its Vice Presidents, either
manually or by facsimile signature, shall have affixed thereto the Company’s seal or a
facsimile thereof, and shall be attested by the Secretary or an Assistant Secretary of the
Company, either manually or by facsimile signature. The Right Certificates shall be
countersigned by the Rights Agent, either manually or by facsimile signature and shall not be
valid for any purpose unless countersigned. In case any officer of the Company who shall have
signed any of the Right Certificates shall cease to be such officer of the Company before
countersignature by the Rights Agent and issuance and delivery by the Company, such Right
Certificates, nevertheless, may be countersigned by the Rights Agent and issued and delivered
by the Company with the same force and effect as though the person who signed such Right
Certificates had not ceased to be such officer of the Company; and any Right Certificate may
be signed on behalf of the Company by any person who, at the actual date of the execution of
such Right Certificate, shall be a proper officer of the Company to sign such Right
Certificate, although at the date of the execution of this Agreement any such person was not
such an officer.
	 
	 	 	Following the Distribution Date, the Rights Agent will keep or cause to be kept, at
its office designated for such purpose, books for registration and transfer of the
Right Certificates issued hereunder. Such books shall show the names and addresses
of the respective holders of the Right Certificates, the number of Rights evidenced
on its face by each of the Right Certificates and the date of each of the Right
Certificates.
	 
	Section 6.	 	 Transfer, Split Up, Combination and Exchange of Right Certificates; Mutilated,
Destroyed, Lost or Stolen Right Certificates. Subject to the provisions of Section 11(a)(ii),
Section 14 and Section 24 hereof, at any time after the Close of Business on the Distribution
Date, and at or prior to the Close of Business on the earlier of the Redemption Date or the
Final Expiration Date, any Right Certificate or Right Certificates may be transferred, split
up, combined or exchanged for another Right Certificate or Right Certificates, entitling the
registered holder to purchase a like number of one one-hundredths of a Preferred Share as the
Right Certificate or Right Certificates surrendered then entitled such holder to purchase.
Any registered holder desiring to transfer, split up, combine or exchange any Right
Certificate or Right Certificates shall make such request in writing delivered to the Rights
Agent, and shall surrender the Right Certificate or
Right Certificates to be transferred, split up, combined or exchanged at the office
of the Rights Agent designated for such purpose. Neither the Rights Agent nor the
Company shall be obligated to take any action whatsoever with respect to the
transfer of any such surrendered Right Certificate until the registered holder shall

8

 

	 	 	have completed and signed the certificate contained in the form of assignment on the
reverse side of such Right Certificate and shall have provided such additional
evidence of the identity of the Beneficial Owner (or former Beneficial Owner) or
Affiliates or Associates thereof as the Company shall reasonably request. Thereupon
the Rights Agent shall, subject to Section 11(a)(ii), Section 14 and Section 24
hereof, countersign and deliver to the person entitled thereto a Right Certificate
or Right Certificates, as the case may be, as so requested. The Company may require
payment of a sum sufficient to cover any tax or governmental charge that may be
imposed in connection with any transfer, split up, combination or exchange of Right
Certificates.
	 
	 	 	Upon receipt by the Company and the Rights Agent of evidence reasonably satisfactory
to them of the loss, theft, destruction or mutilation of a Right Certificate, and,
in case of loss, theft or destruction, of indemnity or security reasonably
satisfactory to them, and, at the Company’s request, reimbursement to the Company
and the Rights Agent of all reasonable expenses incidental thereto, and upon
surrender to the Rights Agent and cancellation of the Right Certificate if
mutilated, the Company will issue, execute and deliver a new Right Certificate of
like tenor to the Rights Agent for countersignature and delivery to the registered
holder in lieu of the Right Certificate so lost, stolen, destroyed or mutilated.
	 
	 	 	Notwithstanding any other provisions hereof, the Company and the Rights Agent may
amend this Rights Agreement to provide for uncertificated Rights in addition to or
in place of Rights evidenced by Rights Certificates.

	Section 7.	 	 Exercise of Rights; Purchase Price; Expiration Date of Rights.

	 	(a)	 	The registered holder of any Right Certificate may exercise the
Rights evidenced thereby (except as otherwise provided herein) in whole or in
part at any time after the Distribution Date upon surrender of the Right
Certificate, with the form of election to purchase on the reverse side thereof
duly executed, to the Rights Agent at the office of the Rights Agent designated
for such purpose, together with payment of the Purchase Price for each one
one-hundredth of a Preferred Share (or such other number of shares or other
securities) as to which the Rights are exercised, at or prior to the earliest
of (i) the Close of Business on September 8, 2018 (the “Final Expiration
Date”), (ii) the time at which the Rights are redeemed as provided in Section
23 hereof (the “Redemption Date”), or (iii) the time at which such Rights are
exchanged as provided in Section 24 hereof.
	 
	 	(b)	 	The purchase price for each one one-hundredth of a Preferred
Share pursuant to the exercise of a Right shall initially be $9.00 (the
“Purchase Price”) and shall be subject to adjustment from time to time as
provided in
Sections 11 and 13 hereof and shall be payable in lawful money of the United
States of America in accordance with paragraph (c) below.
	 
	 	(c)	 	Upon receipt of a Right Certificate representing exercisable
Rights, with the form of election to purchase duly executed, accompanied by
payment

9

 

	 		 	of the Purchase Price for the shares to be purchased and an amount
equal to any applicable transfer tax required to be paid by the holder of such
Right Certificate in accordance with Section 9 hereof by certified check,
cashier’s check, bank draft or money order payable to the order of the Company,
the Rights Agent shall thereupon promptly (i) (A) requisition from any transfer
agent for the Preferred Shares certificates for the number of Preferred Shares
to be purchased and the Company hereby irrevocably authorizes its transfer
agent to comply with all such requests, or (B) if the Company, in its sole
discretion, shall have elected to deposit the Preferred Shares issuable upon
exercise of the Rights hereunder into a depository, requisition from the
depositary agent depositary receipts representing such number of one
one-hundredths of a Preferred Share as are to be purchased (in which case
certificates for the Preferred Shares represented by such receipts shall be
deposited by the transfer agent with the depositary agent) and the Company
hereby directs the depositary agent to comply with such request, (ii) when
appropriate, requisition from the Company the amount of cash to be paid in lieu
of issuance of fractional shares in accordance with Section 14 hereof, (iii)
after receipt of such certificates or depositary receipts, cause the same to be
delivered to or upon the order of the registered holder of such Right
Certificate, registered in such name or names as may be designated by such
holder and (iv) when appropriate, after receipt, deliver such cash to or upon
the order of the registered holder of such Right Certificate. In the event
that the Company is obligated to issue securities of the Company other than
Preferred Shares (including Common Shares) of the Company pursuant to Section
11(a) hereof, the Company will make all arrangements necessary so that such
other securities are available for distribution by the Rights Agent, if and
when appropriate.
	 
	 	 	 	In addition, in the case of an exercise of the Rights by a holder pursuant
to Section 11(a)(ii) hereof, the Rights Agent shall return such Right
Certificate to the registered holder thereof after imprinting, stamping or
otherwise indicating thereon that the rights represented by such Right
Certificate no longer include the rights provided by Section 11(a)(ii)
hereof, and, if fewer than all the Rights represented by such Right
Certificate were so exercised, the Rights Agent shall indicate on the Right
Certificate the number of Rights represented thereby which continue to
include the rights provided by Section 11(a)(ii) hereof.
	 
	 	(d)	 	In case the registered holder of any Right Certificate shall
exercise fewer than all the Rights evidenced thereby (other than a partial
exercise of rights pursuant to Section 11(a)(ii) as described in Section 7(c)
hereof), a new Right Certificate evidencing Rights equivalent to the Rights
remaining unexercised shall be issued by the Rights Agent to the
registered holder of such Right Certificate or to his duly authorized
assigns, subject to the provisions of Section 14 hereof.
	 
	 	(e)	 	The Company covenants and agrees that it will cause to be
reserved and kept available out of its authorized and unissued Preferred Shares
or any

10

 

	 	 	 	Preferred Shares held in its treasury the number of Preferred Shares
that will be sufficient to permit the exercise in full of all outstanding
Rights in accordance with this Section 7.
	 
	 	(f)	 	Notwithstanding anything in this Agreement to the contrary,
neither the Rights Agent nor the Company shall be obligated to undertake any
action with respect to a registered holder upon the occurrence of any purported
exercise as set forth in this Section 7 unless such registered holder shall
have (i) completed and signed the certification following the form of election
to purchase set forth on the reverse side of the Rights Certificate surrendered
for such exercise, (ii) tendered the Purchase Price (and an amount equal to any
applicable transfer tax required to be paid by the holder of such Right
Certificate in accordance with Section 9 to the Company in the manner set forth
in Section 7(c), and (iii) provided such additional evidence of the identity of
the Beneficial Owner (or former Beneficial Owner) or Affiliates or Associates
thereof as the Company shall reasonably request.

	Section 8.	 	 Cancellation and Destruction of Right Certificates. All Right
Certificates surrendered for the purpose of exercise, transfer,
split up, combination or exchange shall, if surrendered to the
Company or to any of its agents, be delivered to the Rights
Agent for cancellation or in canceled form, or, if delivered or
surrendered to the Rights Agent, shall be canceled by it, and
no Right Certificates shall be issued in lieu thereof except as
expressly permitted by any of the provisions of this Agreement.
The Company shall deliver to the Rights Agent for cancellation
and retirement, and the Rights Agent shall so cancel and
retire, any other Right Certificate purchased or acquired by
the Company otherwise than upon the exercise thereof. The
Rights Agent shall deliver all canceled Right Certificates to
the Company, or shall, at the written request of the Company,
destroy such canceled Right Certificates, and in such case
shall deliver a certificate of destruction thereof to the
Company.
	 
	Section 9.	 	 Availability of Preferred Shares. The Company covenants and
agrees that so long as the Preferred Shares (and, after the
time a person becomes an Acquiring Person, Common Shares or any
other securities) issuable upon the exercise of the Rights may
be listed on any national securities exchange or quotation
system, the Company shall use its best efforts to cause, from
and after such time as the Rights become exercisable, all shares reserved for such issuance to be listed on such exchange
or quotation system upon official notice of issuance upon such
exercise.
	 
	 	 	The Company covenants and agrees that it will take all such action as may be
necessary to ensure that all Preferred Shares (or Common Shares and other
securities, as the case may be) delivered upon exercise of Rights shall, at the time
of delivery of the certificates for such Preferred Shares (subject to payment of the
Purchase Price), be duly and validly authorized and issued and fully paid and
nonassessable shares or other securities.
	 
	 	 	The Company further covenants and agrees that it will pay when due and payable any
and all federal and state transfer taxes and charges which may be payable in

11

 

	 	 	respect
of the issuance or delivery of the Right Certificates or of any Preferred Shares
upon the exercise of Rights. The Company shall not, however, be required to pay any
transfer tax which may be payable in respect of any transfer or delivery of Right
Certificates to a person other than, or the issuance or delivery of certificates or
depositary receipts for the Preferred Shares in a name other than that of, the
registered holder of the Right Certificate evidencing Rights surrendered for
exercise or to issue or to deliver any certificates or depositary receipts for
Preferred Shares upon the exercise of any Rights until any such tax shall have been
paid (any such tax being payable by the holder of such Right Certificate at the time
of surrender) or until it has been established to the Company’s reasonable
satisfaction that no such tax is due.
	 
	 	 	As soon as practicable after the Distribution Date, the Company shall use its best
efforts to:

	 	(i)	 	prepare and file a registration statement under
the Securities Act of 1933, as amended (the “Act”), with respect to the
securities purchasable upon exercise of the Rights on an appropriate
form, will use its best efforts to cause such registration statement to
become effective as soon as practicable after such filing and will use
its best efforts to cause such registration statement to remain
effective (with a prospectus at all times meeting the requirements of
the Act) until the Final Expiration Date; and
	 
	 	(ii)	 	use its best efforts to qualify or register the
Rights and the securities purchasable upon exercise of the Rights under
the blue sky laws of such jurisdictions as may be necessary or
appropriate.

	Section 10.	 	 Preferred Shares Record Date. Each person in whose name any certificate for Preferred
Shares or other securities is issued upon the exercise of Rights shall for all purposes be
deemed to have become the holder of record of the Preferred Shares or other securities
represented thereby on, and such certificate shall be dated, the date upon which the Right
Certificate evidencing such Rights was duly surrendered with the forms of election and
certification duly executed and payment of the Purchase Price (and any applicable transfer
taxes) was made; provided, however, that if the date of such surrender and payment is a date
upon which the Preferred Shares or other securities transfer books of the Company are closed,
such person shall be deemed to have become the record holder of such shares on, and such
certificate shall be dated, the next succeeding Business Day on which the Preferred Shares or
other securities transfer books of the Company are open. Prior to the exercise of the Rights
evidenced thereby, the holder of a Right
Certificate, as such, shall not be entitled to any rights of a holder of
Preferred Shares for which the Rights shall be exercisable, including, without
limitation, the right to vote, to receive dividends or other distributions or
to exercise any preemptive rights, and shall not be entitled to receive any
notice of any proceedings of the Company, except as provided herein.

	Section 11.	 	 Adjustment of Purchase Price, Number of Shares or
Number of Rights. The Purchase Price, the number of
Preferred Shares covered by each Right and the

12

 

	 	 	 number
of Rights outstanding are subject to adjustment from
time to time as provided in this Section 11.

	 	 	(a)

	 	(i)	 	In the event the Company shall at any time
after the date of this Agreement (A) declare a dividend on the
Preferred Shares payable in Preferred Shares, (B) subdivide the
outstanding Preferred Shares, (C) combine the outstanding Preferred
Shares into a smaller number of Preferred Shares or (D) issue any
shares of its capital stock in a reclassification of the Preferred
Shares (including any such reclassification in connection with a
consolidation or merger in which the Company is the continuing or
surviving corporation), except as otherwise provided in this Section
11(a), the Purchase Price in effect at the time of the record date for
such dividend or of the effective date of such subdivision, combination
or reclassification, and the number and kind of shares of capital stock
issuable on such date, shall be proportionately adjusted so that the
holder of any Right exercised after such time shall be entitled to
receive the aggregate number and kind of shares of capital stock which,
if such Right had been exercised immediately prior to such date and at
a time when the Preferred Shares transfer books of the Company were
open, such holder would have owned upon such exercise and been entitled
to receive by virtue of such dividend, subdivision, combination or
reclassification; provided, however, that in no event shall the
consideration to be paid upon the exercise of one Right be less than
the aggregate par value of the shares of capital stock of the Company
issuable upon exercise of one Right. If an event occurs which would
require an adjustment under both Section 11(a)(i) and Section 11(a)(ii)
hereof, the adjustment provided for in this Section 11(a)(i) shall be
in addition to, and shall be made prior to any adjustment required
pursuant to Section 11(a)(ii) hereof.
	 
	 	(ii)	 	Subject to Section 24 hereof and the provisions
of the next paragraph of this Section 11(a)(ii), in the event any
Person shall become an Acquiring Person, each holder of a Right shall,
for a period of 60 days after the later of such time any Person becomes
an Acquiring Person or the effective date of an appropriate
registration statement filed under the Act pursuant to Section 9
hereof (provided, however that, if at any time prior to the
expiration or termination of the Rights there shall be a temporary
restraining order, a preliminary injunction, an injunction, or
temporary suspension by the Board of Directors, or similar obstacle
to exercise of the Rights (the “Injunction”) which prevents exercise
of the Rights, a new 60-day period shall commence on the date the
Injunction is removed), have a right to receive, upon exercise
thereof at a price equal to the then current Purchase Price
multiplied by the number of one one-hundredths of a Preferred 

13

 

	 	 	 	Share
for which a Right is then exercisable, in accordance with the terms
of this Agreement and in lieu of Preferred Shares, such number of
Common Shares as shall equal the result obtained by (A) multiplying
the then current Purchase Price by the number of one one-hundredths
of a Preferred Share for which a Right is then exercisable and
dividing that product by (B) 50% of the then current per share market
price of the Common Shares (determined pursuant to Section 11(d)
hereof) on the date such Person became an Acquiring Person; provided,
however, that if the transaction that would otherwise give rise to
the foregoing adjustment is also subject to the provisions of Section
13 hereof, then only the provisions of Section 13 hereof shall apply
and no adjustment shall be made pursuant to this Section 11(a)(ii).
In the event that any Person shall become an Acquiring Person and the
Rights shall then be outstanding, the Company shall not take any
action which would eliminate or diminish the benefits intended to be
afforded by the Rights.
	 
	 	 	 	Notwithstanding anything in this Agreement to the contrary, from and
after the time any Person becomes an Acquiring Person, any Rights
beneficially owned by (i) such Acquiring Person or an Associate or
Affiliate of such Acquiring Person, (ii) a transferee of such
Acquiring Person (or of any such Associate or Affiliate) who becomes
a transferee after the Acquiring Person became such, or (iii) a
transferee of such Acquiring Person (or of any such Associate or
Affiliate) who becomes a transferee prior to or concurrently with the
Acquiring Person’s becoming such and receives such Rights pursuant to
either (A) a transfer (whether or not for consideration) from the
Acquiring Person to holders of equity interests in such Acquiring
Person or to any Person with whom the Acquiring Person has any
continuing agreement, arrangement or understanding regarding the
transferred Rights or (B) a transfer which the Board of Directors of
the Company has determined is part of a plan, arrangement or
understanding which has as a primary purpose or effect the avoidance
of this Section 11(a)(ii), shall become null and void without any
further action and no holder of such Rights shall have any rights
whatsoever with respect to such Rights, whether under any provision
of this Agreement or otherwise. The Company shall use all reasonable
efforts to insure that the provisions of this Section 11(a)(ii) and
Section 4(b) hereof are complied with, but shall have no liability to
any holder of Right Certificates or other Person as a result of its
failure to make any determinations with respect to an Acquiring
Person or its Affiliates, Associates or transferees hereunder. No
Right Certificate shall be issued at any time upon the transfer of
any Rights to an Acquiring Person whose Rights would be void pursuant
to the preceding sentence or any Associate or Affiliate thereof or to
any nominee of such Acquiring

14

 

Person, Associate or Affiliate; and any Right Certificate delivered
to the Rights Agent for transfer to an Acquiring Person whose Rights
would be void pursuant to the preceding sentence shall be canceled.

	 	(iii)	 	In lieu of issuing Common Shares in accordance
with Section 11(a)(ii) hereof, the Company may, if a majority of the
Board of Directors then in office determines that such action is
necessary or appropriate and not contrary to the interests of holders
of Rights, elect to (and, in the event that the Board of Directors has
not exercised the exchange right contained in Section 24(c) hereof and
there are not sufficient treasury shares (if applicable) and authorized
but unissued Common Shares to permit the exercise in full of the Rights
in accordance with the foregoing subparagraph (ii), the Company shall)
take all such action as may be necessary to authorize, issue or pay,
upon the exercise of the Rights, cash (including by way of a reduction
of the Purchase Price), property, Common Shares, other securities or
any combination thereof having an aggregate value equal to the value of
the Common Shares which otherwise would have been issuable pursuant to
Section 11(a)(ii) hereof, which aggregate value shall be determined by
a nationally recognized investment banking firm selected by a majority
of the Board of Directors then in office. For purposes of the
preceding sentence, the value of the Common Shares shall be determined
pursuant to Section 11(d) hereof. Any such election by the Board of
Directors must be made within 60 days following the date on which the
event described in Section 11(a)(ii) hereof shall have occurred.
Following the occurrence of the event described in Section 11(a)(ii)
hereof, a majority of the Board of Directors then in office may suspend
the exercisability of the Rights for a period of up to 60 days
following the date on which the event described in Section 11(a)(ii)
hereof shall have occurred to the extent that such directors have not
determined whether to exercise their rights of election under this
Section 11(a)(iii). In the event of any such suspension, the Company
shall issue a public announcement stating that the exercisability of
the Rights has been temporarily suspended.

	 	(b)	 	In case the Company shall fix a record date for the issuance of
rights, options or warrants to all holders of Preferred Shares entitling them
(for a period expiring within 45 calendar days after such record date) to
subscribe for or purchase Preferred Shares (or shares having the same
designations and the powers, preferences and rights, and the qualifications,
limitations and restrictions as the Preferred Shares (“equivalent preferred shares”)) or securities convertible into Preferred Shares or equivalent
preferred shares at a price per Preferred Share or equivalent preferred share
(or having a conversion price per share, if a security convertible into
Preferred Shares or equivalent preferred shares) less than the then current per
share market price of the Preferred Shares (as such term is hereinafter

15

 

	 	 	 	defined) on such record date, the Purchase Price to be in effect after such
record date shall be determined by multiplying the Purchase Price in effect
immediately prior to such record date by a fraction, the numerator of which
shall be the number of Preferred Shares outstanding on such record date plus the number of Preferred Shares which the aggregate offering price
of the total number of Preferred Shares and/or equivalent preferred shares
so to be offered (and/or the aggregate initial conversion price of the
convertible securities so to be offered) would purchase at such current
market price and the denominator of which shall be the number of Preferred
Shares outstanding on such record date plus the number of additional
Preferred Shares and/or equivalent preferred shares to be offered for
subscription or purchase (or into which the convertible securities so to be
offered are initially convertible); provided, however, that in no event
shall the consideration to be paid upon the exercise of one Right be less
than the aggregate par value of the shares of capital stock of the Company
issuable upon exercise of one Right. In case such subscription price may be
paid in a consideration part or all of which shall be in a form other than
cash, the value of such consideration shall be as determined in good faith
by the Board of Directors, whose determination shall be described in a
statement filed with the Rights Agent. Preferred Shares owned by or held
for the account of the Company shall not be deemed outstanding for the
purpose of any such computation. Such adjustment shall be made successively
whenever such a record date is fixed; and in the event that such rights,
options or warrants are not so issued, the Purchase Price shall be adjusted
to be the Purchase Price which would then be in effect if such record date
had not been fixed.
	 
	 	(c)	 	In case the Company shall fix a record date for the making of a
distribution to all holders of the Preferred Shares (including any such
distribution made in connection with a consolidation or merger in which the
Company is the continuing or surviving corporation) of evidences of
indebtedness or assets (other than a regular quarterly cash dividend or a
dividend payable in Preferred Shares) or subscription rights or warrants
(excluding those referred to in Section 11(b) hereof), the Purchase Price to be
in effect after such record date shall be determined by multiplying the
Purchase Price in effect immediately prior to such record date by a fraction,
the numerator of which shall be the then current per share market price of the
Preferred Shares (as such term is hereinafter defined) on such record date,
less the fair market value (as determined in good faith by the Board of
Directors, whose determination shall be described in a statement filed with the
Rights Agent) of the portion of the assets or evidences of indebtedness so to
be distributed or of such subscription rights or warrants applicable to one
Preferred Share and the denominator of which shall be such current per share
market price of the Preferred Shares; provided, however, that in no event shall
the consideration to be paid upon the exercise of one Right be less than the
aggregate par value of the shares of capital stock of the Company to be issued
upon exercise of one Right. Such adjustments shall be made successively
whenever such a record date

16

 

is fixed; and in the event that such distribution
is not so made, the Purchase Price shall again be adjusted to be the Purchase
Price which would then be in effect if such record date had not been fixed.

	 	(d)	 	 

	 	(i)	 	For the purpose of any computation hereunder,
the “current per share market price” of any security (a “Security” for
the purpose of this Section 11(d)(i)) on any date shall be deemed to be
the average of the daily closing prices per share of such Security for the 30
consecutive Trading Days (as such term is hereinafter defined)
immediately prior to such date; provided, however, that in the event
that the current per share market price of the Security is determined
during a period following the announcement by the issuer of such
Security of (A) a dividend or distribution on such Security payable
in shares of such Security or securities convertible into such shares, or (B) any subdivision, combination or reclassification of
such Security or securities convertible into such shares, or (C) any
subdivision, combination or reclassification of such Security and
prior to the expiration of 30 Trading Days after the ex-dividend date
for such dividend or distribution, or the record date for such
subdivision, combination or reclassification, then, and in each such
case, the current per share market price shall be appropriately
adjusted to reflect the current market price per share equivalent of
such Security. The closing price for each day shall be the last sale
price, regular way, or, in case no such sale takes place on such day,
the average of the closing bid and asked prices, regular way, in
either case as reported in the principal consolidated transaction
reporting system with respect to securities listed or admitted to
trading on the New York Stock Exchange or, if the Security is not
listed or admitted to trading on the New York Stock Exchange, as
reported in the principal consolidated transaction reporting system
with respect to securities listed on the principal national
securities exchange on which the Security is listed or admitted to
trading or as reported on the Nasdaq Capital Market or Nasdaq Global
Market or, if the Security is not listed or admitted to trading on
any national securities exchange or reported on the Nasdaq Capital
Market or Nasdaq Global Market, the last quoted price or, if not so
quoted, the average of the high bid and low asked prices in the
over-the-counter market, as reported by the National Association of
Securities Dealers, Inc. Automated Quotations System (“Nasdaq”) or
such other system then in use, or, if on any such date the Security
is not quoted by any such organization, the average of the closing
bid and asked prices as furnished by a professional market maker
making a market in the Security selected by the Board of Directors of
the Company or, if on any such date no professional market maker is
making a market in the Security, the price as determined in good
faith by the Board of Directors. The term “Trading Day” shall mean a
day on which

17

 

	 	 	 	the principal national securities exchange on which the
Security is listed or admitted to trading is open for the transaction
of business or, if the Security is not listed or admitted to trading
on any national securities exchange, a Business Day.
	 
	 	(ii)	 	For the purpose of any computation hereunder,
the “current per share market price” of the Preferred Shares shall be
determined in accordance with the method set forth in Section 11(d)(i)
hereof. If the Preferred Shares are not publicly traded, the “current
per share market price” of the Preferred Shares shall be conclusively
deemed to be the current per share market price of the Common Shares as
determined pursuant to Section 11(d)(i) hereof (appropriately adjusted
to reflect any stock split, stock dividend or similar
transaction occurring after the date hereof) multiplied by one
hundred. If neither the Common Shares nor the Preferred Shares are
publicly held or so listed or traded, “current per share market
price” shall mean the fair value per share as determined in good
faith by the Board of Directors of the Company, whose determination
shall be described in a statement filed with the Rights Agent.

	 	(e)	 	No adjustment in the Purchase Price shall be required unless
such adjustment would require an increase or decrease of at least 1% in the
Purchase Price; provided, however, that any adjustments which by reason of this
Section 11(e) are not required to be made shall be carried forward and taken
into account in any subsequent adjustment. All calculations under this
Section 11 shall be made to the nearest cent or to the nearest one
one-hundredth of a Preferred Share or one ten-thousandth of any other share or
security as the case may be. Notwithstanding the first sentence of this
Section 11(e), any adjustment required by this Section 11 shall be made no
later than the earlier of (i) three years from the date of the transaction
which requires such adjustment or (ii) the date of the expiration of the right
to exercise any Rights.
	 
	 	(f)	 	If as a result of an adjustment made pursuant to Section 11(a)
hereof, the holder of any Right thereafter exercised shall become entitled to
receive any shares of capital stock of the Company other than Preferred Shares,
thereafter the number of such other shares so receivable upon exercise of any
Right shall be subject to adjustment from time to time in a manner and on terms
as nearly equivalent as practicable to the provisions with respect to the
Preferred Shares contained in Sections 11(a) through 11(c) hereof, inclusive,
and the provisions of Sections 7, 9, 10, 13 and 14 hereof with respect to the
Preferred Shares shall apply on like terms to any such other shares.
	 
	 	(g)	 	All Rights originally issued by the Company subsequent to any
adjustment made to the Purchase Price hereunder shall evidence the right to
purchase, at the adjusted Purchase Price, the number of one one-hundredths of a
Preferred Share purchasable from time to time hereunder upon exercise of

18

 

	 	 	 	the Rights, all subject to further adjustment as provided herein.
	 
	 	(h)	 	Unless the Company shall have exercised its election as
provided in Section 11(i) hereof, upon each adjustment of the Purchase Price as
a result of the calculations made in Section 11(b) and Section 11(c) hereof,
each Right outstanding immediately prior to the making of such adjustment shall
thereafter evidence the right to purchase, at the adjusted Purchase Price, that
number of one one-hundredths of a Preferred Share (calculated to the nearest
one one-millionth of a Preferred Share) obtained by (i) multiplying (x) the
number of one one-hundredths of a Preferred Share covered by a Right
immediately prior to this adjustment by (y) the Purchase Price in effect
immediately prior to such adjustment of the Purchase Price and (ii) dividing
the product so obtained by the Purchase Price in effect immediately after such
adjustment of the Purchase Price.
	 
	 	(i)	 	The Company may elect on or after the date of any adjustment of
the Purchase Price to adjust the number of Rights, in substitution for any
adjustment in the number of one one-hundredths of a Preferred Share
purchasable upon the exercise of a Right. Each of the Rights outstanding
after such adjustment of the number of Rights shall be exercisable for the
number of one one-hundredths of a Preferred Share for which a Right was
exercisable immediately prior to such adjustment. Each Right held of record
prior to such adjustment of the number of Rights shall become that number of
Rights (calculated to the nearest one ten-thousandth) obtained by dividing
the Purchase Price in effect immediately prior to adjustment of the Purchase
Price by the Purchase Price in effect immediately after adjustment of the
Purchase Price. The Company shall make a public announcement of its
election to adjust the number of Rights, indicating the record date for the
adjustment, and, if known at the time, the amount of the adjustment to be
made. This record date may be the date on which the Purchase Price is
adjusted or any day thereafter, but, if the Right Certificates have been
issued, shall be at least 10 days later than the date of the public
announcement. If Right Certificates have been issued, upon each adjustment
of the number of Rights pursuant to this Section 11(i), the Company shall,
as promptly as practicable, cause to be distributed to holders of record of
Right Certificates on such record date Right Certificates evidencing,
subject to Section 14 hereof, the additional Rights to which such holders
shall be entitled as a result of such adjustment, or, at the option of the
Company, shall cause to be distributed to such holders of record in
substitution and replacement for the Right Certificates held by such holders
prior to the date of adjustment, and upon surrender thereof, if required by
the Company, new Right Certificates evidencing all the Rights to which such
holders shall be entitled after such adjustment. Right Certificates so to
be distributed shall be issued, executed and countersigned in the manner
provided for herein and shall be registered in the names of the holders of
record of Right Certificates on the record date specified in the public
announcement.
	 
	 	(j)	 	Irrespective of any adjustment or change in the Purchase Price
or the

19

 

	 	 	 	number of one one-hundredths of a Preferred Share issuable upon the
exercise of the Rights, the Right Certificates theretofore and thereafter
issued may continue to express the Purchase Price and the number of one
one-hundredths of a Preferred Share which were expressed in the initial Right
Certificates issued hereunder.
	 
	 	(k)	 	Before taking any action that would cause an adjustment
reducing the Purchase Price below one one-hundredth of the then par value, if
any, of the Preferred Shares issuable upon exercise of the Rights, the Company
shall take any corporate action which may, in the opinion of its counsel, be
necessary in order that the Company may validly and legally issue fully paid
and nonassessable Preferred Shares at such adjusted Purchase Price.
	 
	 	(l)	 	In any case in which this Section 11 shall require that an
adjustment in the Purchase Price be made effective as of a record date for a
specified event, the Company may elect to defer until the occurrence of such
event the issuing to the holder of any Right exercised after such record date
of the Preferred Shares and other capital stock or securities of the Company,
if any, issuable upon such exercise on the basis of the Purchase Price in
effect prior to such adjustment; provided, however, that the Company shall
deliver to such holder a due bill or other appropriate instrument evidencing
such holder’s right to receive such additional shares upon the
occurrence of the event requiring such adjustment.
	 
	 	(m)	 	The Company covenants and agrees that, after the Distribution
Date, it will not, except as permitted by Section 23 or Section 27 hereof, take
(or permit any Subsidiary to take) any action the purpose of which is to, or if
at the time such action is taken it is reasonably foreseeable that the effect
of such action is to, materially diminish or eliminate the benefits intended to
be afforded by the Rights. Any such action taken by the Company during any
period after any Person becomes an Acquiring Person but prior to the
Distribution Date shall be null and void unless such action could be taken
under this Section 11(m) from and after the Distribution Date.
	 
	 	(n)	 	Anything in this Section 11 to the contrary notwithstanding,
the Company shall be entitled to make such reductions in the Purchase Price, in
addition to those adjustments expressly required by this Section 11, as and to
the extent that it in its sole discretion shall determine to be advisable in
order that any consolidation or subdivision of the Preferred Shares, issuance
wholly for cash of any Preferred Shares at less than the current market price,
issuance wholly for cash of Preferred Shares or securities which by their terms
are convertible into or exchangeable for Preferred Shares, dividends on
Preferred Shares payable in Preferred Shares or issuance of rights, options or
warrants referred to hereinabove in Section 11(b), hereafter made by the
Company to holders of its Preferred Shares shall not be taxable to such
shareholders.
	 
	 	(o)	 	In the event that at any time after the date of this Agreement
and prior to the Distribution Date, the Company shall (i) declare or pay any
dividend

20

 

	 	 	 	on the Common Shares payable in Common Shares or (ii) effect a
subdivision, combination or consolidation of the Common Shares (by
reclassification or otherwise than by payment of dividends in Common Shares)
into a greater or lesser number of Common Shares, then in any such case (A) the
number of one one-hundredths of a Preferred Share purchasable after such event
upon proper exercise of each Right shall be determined by multiplying the
number of one one-hundredths of a Preferred Share so purchasable immediately
prior to such event by a fraction, the numerator of which is the number of
Common Shares outstanding immediately before such event and the denominator of
which is the number of Common Shares outstanding immediately after such event,
and (B) each Common Share outstanding immediately after such event shall have
issued with respect to it that number of Rights which each Common Share
outstanding immediately prior to such event had issued with respect to it. The
adjustments provided for in this Section 11(o) shall be made successively
whenever such a dividend is declared or paid or such a subdivision, combination
or consolidation is effected.
	 
	 	(p)	 	The exercise of Rights under Section 11(a)(ii) hereof shall
only result in the loss of rights under Section 11(a)(ii) hereof to the extent
so exercised and shall not otherwise affect the rights represented by the
Rights under this Agreement, including the rights represented by Section 13
hereof.

	 	 	 
	Section 12.

	 	Certificate of Adjusted Purchase Price or Number of Shares. Whenever an adjustment is
made as provided in Sections 11 and 13 hereof, the Company shall promptly (a) prepare a
certificate setting forth such adjustment, and a brief statement of the facts accounting for
such adjustment, (b) file with the Rights Agent and with each transfer agent for the Common Shares or the Preferred Shares a copy of
such certificate and (c) mail a brief summary thereof to each holder of a Right Certificate in
accordance with Section 25 hereof. The Rights Agent shall be fully protected in relying on
any such certificate and on any adjustment therein contained and shall not be deemed to have
knowledge of any adjustment unless and until it shall have received such certificate.

	 	 	 
	Section 13.

	 	Consolidation, Merger or Sale or Transfer of Assets or Earning Power.

	 	(a)	 	In the event that, following the Shares Acquisition Date or, if
a Transaction is proposed, the Distribution Date, directly or indirectly
(x) the Company shall consolidate with, or merge with and into, any Interested
Shareholder, or if in such merger or consolidation all holders of Common Stock
are not treated alike, any other Person, (y) any Interested Shareholder, or if
in such merger or consolidation all holders of Common Stock are not treated
alike, any other Person shall consolidate with the Company, or merge with and
into the Company, and the Company shall be the continuing or surviving
corporation of such merger (other than, in the case of either transaction
described in (x) or (y), a merger or consolidation which would result in all of
the voting power represented by the securities of the Company outstanding
immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into

21

 

	 	 	 	securities of the surviving entity) all of the voting power represented by the securities of the Company or such
surviving entity outstanding immediately after such merger or consolidation and
the holders of such securities not having changed as a result of such merger or
consolidation), or (z) the Company shall sell, mortgage or otherwise transfer
(or one or more of its subsidiaries shall sell, mortgage or otherwise
transfer), in one or more transactions, assets or earning power aggregating
more than 50% of the assets or earning power of the Company and its
subsidiaries (taken as a whole) to any Interested Shareholder or Shareholders,
or if in such transaction all holders of Common Stock are not treated alike,
any other Person, (other than the Company or any Subsidiary of the Company in
one or more transactions each of which individually and the aggregate does not
violate Section 13(d) hereof) then, and in each such case, proper provision
shall be made so that (i) each holder of a Right, subject to Section 11(a)(ii)
hereof, shall have the right to receive, upon the exercise thereof at a price
equal to the then current Purchase Price multiplied by the number of one
one-hundredths of a Preferred Share for which a Right is then exercisable in
accordance with the terms of this Agreement and in lieu of Preferred Shares,
such number of freely tradeable Common Shares of the Principal Party (as such
term is hereinafter defined), free and clear of liens, rights of call or first
refusal, encumbrances or other adverse claims, as shall be equal to the result
obtained by (A) multiplying the then current Purchase Price by the number of
one one-hundredths of a Preferred Share for which a Right is then exercisable
(without taking into account any adjustment previously made pursuant to
Section 11(a)(ii) hereof) and dividing that product by (B) 50% of the then
current per share market price of the Common Shares of such Principal Party
(determined pursuant to Section 11(d) hereof) on the date of consummation of
such consolidation, merger, sale or transfer; (ii) such Principal Party shall
thereafter be liable for, and shall assume, by virtue of such consolidation,
merger, sale or transfer, all the obligations and duties of the Company
pursuant to this Agreement; (iii) the term “Company” shall thereafter be
deemed to refer to such Principal Party, it being specifically intended that
the provisions of Section 11 hereof shall apply to such Principal Party; and
(iv) such Principal Party shall take such steps (including, but not limited
to, the reservation of a sufficient number of shares of its Common Shares in
accordance with Section 9 hereof) in connection with such consummation as
may be necessary to assure that the provisions hereof shall thereafter be
applicable, as nearly as reasonably may be, in relation to its Common Shares
thereafter deliverable upon the exercise of the Rights.

	 	(b)	 	“Principal Party” shall mean:

	 	(i)	 	in the case of any transaction described in
clause (x) or (y) of the first sentence of Section 13(a) hereof, the
Person that is the issuer of any securities into which Common Shares
are converted in such merger or consolidation, and if no securities are
so issued, the Person that is the other party to the merger or
consolidation (or, if

22

 

	 	 	 	applicable, the Company, if it is the surviving corporation); and
	 
	 	(ii)	 	in the case of any transaction described in
clause (z) of Section 13(a) hereof, the Person that is the party
receiving the greatest portion of the assets or earning power
transferred pursuant to such transaction or transactions;

provided, however, that in any case, (1) if the Common Shares of such Person
are not at such time and have not been continuously over the preceding
12-month period registered under Section 12 of the Exchange Act, and such
Person is a direct or indirect subsidiary or Affiliate of another Person the
Common Shares of which are and have been so registered, “Principal Party”
shall refer to such other Person; (2) if such Person is a subsidiary,
directly or indirectly, or Affiliate of more than one Person, the Common
Shares of two or more of which are and have been so registered, “Principal
Party” shall refer to whichever of such Persons is the issuer of the Common
Shares having the greatest aggregate market value; and (3) if such Person is
owned, directly or indirectly, by a joint venture formed by two or more
Persons that are not owned, directly or indirectly, by the same Person, the
rules set forth in (1) and (2) above shall apply to each of the chains of
ownership having an interest in such joint venture as if such party were a
“subsidiary” of both or all of such joint venturers and the Principal
Parties in each such chain shall bear the obligations set forth in this
Section 13 in the same ratio as their direct or indirect interests in such
Person bear to the total of such interests.

	 	(c)	 	The Company shall not consummate any such consolidation,
merger, sale or transfer unless the Principal Party shall have a sufficient
number of authorized Common Shares that have not been issued or reserved for
issuance to permit the exercise in full of the Rights in accordance with this
Section 13 and unless prior thereto the Company and each Principal Party and
each other Person who may become a Principal Party as a result of such
consolidation, merger, sale or transfer shall have (i) executed and delivered
to the Rights Agent a supplemental agreement providing for the terms set forth
in paragraphs (a) and (b) of this Section 13 and (ii) prepared, filed and had
declared and remain effective a registration
statement under the Act on the appropriate form with respect to the Rights
and the securities exercisable upon exercise of the Rights and further
providing that, as soon as practicable after the date of any consolidation,
merger, sale or transfer of assets mentioned in paragraph (a) of this
Section 13, the Principal Party at its own expense will:

	 	(i)	 	cause the registration statement under the Act
with respect to the Rights and the securities purchasable upon exercise
of the Rights on an appropriate form to remain effective (with a
prospectus at all times meeting the requirements of the Act) until the
Final Expiration Date;
	 
	 	(ii)	 	use its best efforts to qualify or register the
Rights and the

23

 

	 	 	 	securities purchasable upon exercise of the Rights under the blue sky laws of such jurisdictions as may be necessary or
appropriate;
	 
	 	(iii)	 	list the Rights and the securities purchasable
upon exercise of the Rights on each national securities exchange on
which the Common Shares were listed prior to the consummation of such
consolidation, merger, sale or transfer or on the Nasdaq Capital Market
or Nasdaq Global Market if the Common Shares were listed on the Nasdaq
Capital Market or Nasdaq Global Market or, if the Common Shares were
not listed on a national securities exchange or the Nasdaq Capital
Market or Nasdaq Global Market prior to the consummation of such
consummation of such consolidation, merger, sale or transfer, on a
national securities exchange or the Nasdaq Capital Market or Nasdaq
Global Market; and
	 
	 	(iv)	 	deliver to holders of the Rights historical
financial statements for the Principal Party and each of its Affiliates
which comply in all material respects with the requirements for
registration on Form 10 under the Exchange Act.

The provisions of this Section 13 shall similarly apply to successive mergers or
consolidations or sales or other transfers.

	 	(d)	 	After the Distribution Date, the Company covenants and agrees
that it shall not (i) consolidate with, (ii) merge with or into, or (iii) sell
or transfer to, in one or more transactions, assets or earning power
aggregating more than 50% of the assets or earning power of the Company and its
subsidiaries taken as a whole, any other Person (other than a Subsidiary of the
Company in a transaction which does not violate Section 11(m) hereof), if
(x) at the time of or after such consolidation, merger or sale there are any
charter or bylaw provisions or any rights, warrants or other instruments or
securities outstanding, agreements in effect or any other action taken which
would diminish or otherwise eliminate the benefits intended to be afforded by
the Rights or (y) prior to, simultaneously with or immediately after such
consolidation, merger or sale, the shareholders of the Person who constitutes,
or would constitute, the “Principal Party” for purposes of Section 13(a) hereof
shall have received a distribution of Rights previously owned by such Person or
any of its Affiliates and Associates. The Company shall not consummate any
such consolidation, merger, sale or transfer unless prior thereto the Company
and such other Person shall have executed and delivered to the Rights Agent a supplemental
agreement evidencing compliance with this Section 13(d).

	 	 	 
	Section 14.

	 	Fractional Rights and Fractional Shares.

	 	(a)	 	The Company shall not be required to issue fractions of Rights
or to distribute Right Certificates which evidence fractional Rights. In lieu
of such fractional Rights, there shall be paid to the registered holders of the

24

 

	 	 	 	Right Certificates with regard to which such fractional Rights would otherwise
be issuable, an amount in cash equal to the same fraction of the current market
value of a whole Right. For the purposes of this Section 14(a), the current
market value of a whole Right shall be the closing price of the Rights for the
Trading Day immediately prior to the date on which such fractional Rights would
have been otherwise issuable. The closing price for any day shall be the last
sale price, regular way, or, in case no such sale takes place on such day, the
average of the closing bid and asked prices, regular way, in either case as
reported in the principal consolidated transaction reporting system with
respect to securities listed or admitted to trading on the New York Stock
Exchange or, if the Rights are not listed or admitted to trading on the New
York Stock Exchange, as reported in the principal consolidated transaction
reporting system with respect to securities listed on the principal national
securities exchange on which the Rights are listed or admitted to trading or as
reported on the Nasdaq Capital Market or Nasdaq Global Market or, if the Rights
are not listed or admitted to trading on any national securities exchange or
reported on the Nasdaq Capital Market or Nasdaq Global Market, the last quoted
price or, if not so quoted, the average of the high bid and low asked prices in
the over-the-counter market, as reported by Nasdaq or such other system then in
use or, if on any such date the Rights are not quoted by any such organization,
the average of the closing bid and asked prices as furnished by a professional
market maker making a market in the Rights selected by the Board of Directors.
If on any such date no such market maker is making a market in the Rights, the
fair value of the Rights on such date as determined in good faith by the Board
of Directors shall be used.
	 
	 	(b)	 	The Company shall not be required to issue fractions of
Preferred Shares (other than fractions which are integral multiples of one
one-hundredth of a Preferred Share) upon exercise of the Rights or to
distribute certificates which evidence fractional Preferred Shares (other than
fractions which are integral multiples of one one-hundredth of a Preferred
Share). Fractions of Preferred Shares in integral multiples of one
one-hundredth of a Preferred Share may, at the election of the Company, be
evidenced by depositary receipts; provided, however, that holders of such
depositary receipts shall have all of the designations and the powers,
preferences and rights, and the qualifications, limitations and restrictions to
which they are entitled as beneficial owners of the Preferred Shares
represented by such depositary receipts. In lieu of fractional Preferred
Shares that are not integral multiples of one one-hundredth of a Preferred
Share, the Company shall pay to the registered holders of Right Certificates at
the time such Rights are exercised as herein provided an amount in cash equal
to the same fraction of the current market value of one Preferred Share. For
the purposes of this Section 14(b), the current market value of a
Preferred Share shall be the current per share market price of the Preferred
Shares (as determined pursuant to the second sentence of Section 11(d)(i)
hereof) for the Trading Day immediately prior to the date of such exercise

25

 

	 	 	 	(or, if not publicly traded, in accordance with Section 11(d)(ii) hereof).
	 
	 	(c)	 	Following the occurrence of one of the transactions or events
specified in Section 11 hereof giving rise to the right to receive Common
Shares, capital stock equivalents (other than Preferred Shares) or other
securities upon the exercise of a Right, the Company shall not be required to
issue fractions of Common Shares or units of such Common Shares, capital stock
equivalents or other securities upon exercise of the Rights or to distribute
certificates which evidence fractional Common Shares, capital stock equivalents
or other securities. In lieu of fractional Common Shares, capital stock
equivalents or other securities, the Company shall pay to the registered
holders of Right Certificates at the time such Rights are exercised as herein
provided an amount in cash equal to the same fraction of the current market
value of one Common Share or unit of such Common Shares, capital stock
equivalents or other securities. For purposes of this Section 14(c), the
current market value shall be the current per share market price (as determined
pursuant to Section 11(d)(i) hereof) for the Trading Day immediately prior to
the date of such exercise and, if such capital stock equivalent is not traded,
each such capital stock equivalent shall have the value of one one-hundredth of
a Preferred Share.
	 
	 	(d)	 	The holder of a Right by the acceptance of the Right expressly
waives his right to receive any fractional Rights or any fractional shares upon
exercise of a Right (except as provided above).

	 	 	 
	Section 15.

	 	Rights of Action. All rights of action in respect of this
Agreement, excepting the rights of action given to the Rights
Agent under Sections 18 and 20 hereof, are vested in the
respective registered holders of the Right Certificates (and,
prior to the Distribution Date, the registered holders of the
Common Shares) and any registered holder of any Right
Certificate (or, prior to the Distribution Date, of the Common
Shares), without the consent of the Rights Agent or of the
holder of any other Right Certificate (or, prior to the
Distribution Date, of the Common Shares), may, in his own
behalf and for his own benefit, enforce, and may institute and
maintain any suit, action or proceeding against the Company to
enforce, or otherwise act in respect of, his right to exercise
the Rights evidenced by such Right Certificate in the manner
provided in such Right Certificate and in this Agreement.
Without limiting the foregoing or any remedies available to
the holders of Rights, it is specifically acknowledged that
the holders of Rights would not have an adequate remedy at law
for any breach of this Agreement and will be entitled to
specific performance of the obligations under, and injunctive
relief against actual or threatened violations of the
obligations of any Person subject to, this Agreement. Holders
of Rights shall be entitled to recover the reasonable costs
and expenses, including attorneys fees, incurred by them in
any action to enforce the provisions of this Agreement.
	 
	 	 
	Section 16.

	 	Agreement of Right Holders. Every holder of a Right, by
accepting the same, consents and agrees with the Company and
the Rights Agent and with every other holder of a Right that:

26

 

	 	(a)	 	prior to the Distribution Date, the Rights will be transferable
only in connection with the transfer of the Common Shares;
	 
	 	(b)	 	after the Distribution Date, the Right Certificates are
transferable (subject to the provisions of this Rights Agreement) only on the
registry books of the Rights Agent if surrendered at the principal office of
the Rights Agent, duly endorsed or accompanied by a proper instrument of
transfer; and
	 
	 	(c)	 	the Company and the Rights Agent may deem and treat the person
in whose name the Right Certificate (or, prior to the Distribution Date, the
associated Common Shares certificate) is registered as the absolute owner
thereof and of the Rights evidenced thereby (notwithstanding any notations of
ownership or writing on the Right Certificates or the associated Common Shares
certificate made by anyone other than the Company or the Rights Agent) for all
purposes whatsoever, and neither the Company nor the Rights Agent shall be
affected by any notice to the contrary.

	 	 	 
	Section 17.

	 	Right Certificate Holder Not Deemed a Shareholder. No holder,
as such, of any Right Certificate shall be entitled to vote,
receive dividends or be deemed for any purpose the holder of
the Preferred Shares or any other securities of the Company
which may at any time be issuable on the exercise of the
Rights represented thereby, nor shall anything contained
herein or in any Right Certificate be construed to confer upon
the holder of any Right Certificate, as such, any of the
rights of a shareholder of the Company or any right to vote
for the election of directors or upon any matter submitted to
shareholders at any meeting thereof, or to give or withhold
consent to any corporate action, or to receive notice of
meetings or other actions affecting shareholders (except as
provided in Section 25 hereof), or to receive dividends or
subscription rights, or otherwise, until the Right or Rights
evidenced by such Right Certificate shall have been exercised
in accordance with the provisions hereof.
	 
	 	 
	Section 18.

	 	Concerning the Rights Agent. The Company agrees to pay to the
Rights Agent reasonable compensation for all services rendered
by it hereunder and, from time to time, on demand of the
Rights Agent, its reasonable expenses and counsel fees and
other disbursements incurred in the administration and
execution of this Agreement and the exercise and performance
of its duties hereunder. The Company also agrees to indemnify
the Rights Agent for, and to hold it harmless against, any
loss, liability, or expense, incurred without gross
negligence, bad faith or willful misconduct on the part of the
Rights Agent, for anything done or omitted by the Rights Agent
in connection with the acceptance and administration of this
Agreement, including the costs and expenses of defending
against any claim of liability in the premises. The indemnity
provided herein shall survive the expiration of the Rights and
the termination of this Agreement.
	 
	 	 
	 

	 	The Rights Agent shall be protected and shall incur no liability for, or in respect
of any action taken, suffered or omitted by it in connection with, its
administration of this Agreement in reliance upon any Right Certificate or
certificate for the Preferred Shares or Common Shares or for other securities of

27

 

	 	 	 
	 

	 	the Company, instrument of assignment or transfer, power of attorney, endorsement,
affidavit, letter, notice, direction, consent, certificate, statement, or other
paper or document believed by it to be genuine and to be signed, executed and, where
necessary, verified or acknowledged, by the proper person or persons, or otherwise
upon the advice of counsel as set forth in Section 20 hereof. In no case will the
Rights Agent be liable for special, indirect, incidental or consequential or
consequential loss or damage at any kind whatsoever (including but not limited to
lost profits), even if the Rights Agent has been advised of such loss or damage.

	 	 	 
	Section 19.

	 	Merger or Consolidation or Change of Name of Rights Agent.
Any corporation into which the Rights Agent or any successor
Rights Agent may be merged or with which it may be
consolidated, or any corporation resulting from any merger or
consolidation to which the Rights Agent or any successor
Rights Agent shall be a party, or any corporation succeeding
to the shareholder services or corporate trust business of the
Rights Agent or any successor Rights Agent, shall be the
successor to the Rights Agent under this Agreement without the
execution or filing of any paper or any further act on the
part of any of the parties hereto, provided that such
corporation would be eligible for appointment as a successor
Rights Agent under the provisions of Section 21 hereof. In
case at the time such successor Rights Agent shall succeed to
the agency created by this Agreement any of the Right
Certificates shall have been countersigned but not delivered,
any such successor Rights Agent may adopt the countersignature
of the predecessor Rights Agent and deliver such Right
Certificates so countersigned; and in case at that time any of
the Right Certificates shall not have been countersigned, any
successor Rights Agent may countersign such Right Certificates
either in the name of the predecessor Rights Agent or in the
name of the successor Rights Agent; and in all such cases such
Right Certificates shall have the full force provided in the
Right Certificates and in this Agreement.
	 
	 	 
	 

	 	In case at any time the name of the Rights Agent shall be changed and at such time
any of the Right Certificates shall have been countersigned but not delivered, the
Rights Agent may adopt the countersignature under its prior name and deliver Right
Certificates so countersigned; and in case at that time any of the Right
Certificates shall not have been countersigned, the Rights Agent may countersign
such Right Certificates either in its prior name or in its changed name; and in all
such cases such Right Certificates shall have the full force provided in the Right
Certificates and in this Agreement.

	 	 	 
	Section 20.

	 	Duties of Rights Agent. The Rights Agent undertakes the duties and obligations imposed
by this Agreement upon the following terms and conditions, by all of which the Company and the
holders of Right Certificates, by their acceptance thereof, shall be bound:

	 	(a)	 	The Rights Agent may consult with legal counsel of its choice
(who may be legal counsel for the Company), and the opinion of such counsel
shall be full and complete authorization and protection to the Rights Agent as
to any action taken or omitted by it in good faith and in accordance with such
opinion.

28

 

	 	(b)	 	Whenever in the performance of its duties under this Agreement
the Rights Agent shall deem it necessary or desirable that any fact or matter
be proved or established by the Company prior to taking or suffering any action
hereunder, such fact or matter (unless other evidence in respect thereof be
herein specifically prescribed) may be deemed to be conclusively proved and
established by a certificate signed by any one of the Chairman of the Board,
the Chief Executive Officer, the President, the Chief Financial Officer, any
Vice President, the Treasurer or the Secretary of the Company and delivered to
the Rights Agent; and such certificate shall be full authorization to the
Rights Agent for any action taken or
suffered in good faith by it under the provisions of this Agreement in
reliance upon such certificate.
	 
	 	(c)	 	The Rights Agent shall be liable hereunder to the Company and
any other Person only for its own gross negligence, bad faith or willful
misconduct.
	 
	 	(d)	 	The Rights Agent shall not be liable for or by reason of any of
the statements of fact or recitals contained in this Agreement or in the Right
Certificates (except its countersignature thereof) or be required to verify the
same, but all such statements and recitals are and shall be deemed to have been
made by the Company only.
	 
	 	(e)	 	The Rights Agent shall not be under any responsibility in
respect of the validity of this Agreement or the execution and delivery hereof
(except the due execution hereof by the Rights Agent) or in respect of the
validity or execution of any Right Certificate (except its countersignature
thereof); nor shall it be responsible for any breach by the Company of any
covenant or condition contained in this Agreement or in any Right Certificate;
nor shall it be responsible for any change in the exercisability of the Rights
(including the Rights becoming void pursuant to Section 11(a)(ii) hereof) or
any adjustment in the terms of the Rights (including the manner, method or
amount thereof) provided for in Sections 3, 11, 13, 23 or 24 hereof, or the
ascertaining of the existence of facts that would require any such change or
adjustment (except with respect to the exercise of Rights evidenced by Right
Certificates after receipt of a certificate pursuant to Section 12 hereof
describing such change or adjustment); nor shall it by any act hereunder be
deemed to make any representation or warranty as to the authorization or
reservation of any Preferred Shares to be issued pursuant to this Agreement or
any Right Certificate or as to whether any Preferred Shares will, when issued,
be validly authorized and issued, fully paid and nonassessable.
	 
	 	(f)	 	The Company agrees that it will perform, execute, acknowledge
and deliver or cause to be performed, executed, acknowledged and delivered all
such further and other acts, instruments and assurances as may reasonably be
required by the Rights Agent for the carrying out or performing by the Rights
Agent of the provisions of this Agreement.
	 
	 	(g)	 	The Rights Agent is hereby authorized and directed to accept
instructions

29

 

	 	 	 	with respect to the performance of its duties hereunder from any
one of the Chairman of the Board, the Chief Executive Officer, the President,
the Chief Financial Officer, any Vice President, the Secretary or the Treasurer
of the Company, and to apply to such officers for advice or instructions in
connection with its duties, and it shall not be liable for any action taken or
suffered by it in good faith in accordance with instructions of any such
officer or for any delay in acting while waiting for those instructions. Any
application by the Rights Agent for written instructions from the Company may,
at the option of the Rights Agent, set forth in writing any action proposed to
be taken or omitted by the Rights Agent with respect to its duties or
obligations under this Agreement and the date on and/or after which such action
shall be taken or omitted and the Rights Agent shall not be liable for any
action taken or omitted in accordance with a proposal included in any such
application on or after the date specified therein (which date shall not be
less than three business days after the date indicated in such application
unless any such officer shall have consented in writing to an earlier date)
unless, prior to taking or omitting any such action, the Rights Agent has
received written instructions in response to such application specifying the
action to be taken or omitted.
	 
	 	(h)	 	The Rights Agent and any shareholder, director, officer or
employee of the Rights Agent may buy, sell or deal in any of the Rights or
other securities of the Company or become pecuniarily interested in any
transaction in which the Company may be interested, or contract with or lend
money to the Company or otherwise act as fully and freely as though it were not
Rights Agent under this Agreement. Nothing herein shall preclude the Rights
Agent from acting in any other capacity for the Company or for any other legal
entity.
	 
	 	(i)	 	The Rights Agent may execute and exercise any of the rights or
powers
hereby vested in it or perform any duty hereunder either itself or by or
through its attorneys or agents, and the Rights Agent shall not be
answerable or accountable for any act, default, neglect or misconduct of any
such attorneys or agents or for any loss to the Company resulting from any
such act, default, neglect or misconduct, provided reasonable care was
exercised in the selection and continued employment thereof.
	 
	 	(j)	 	No provision of this Agreement shall require the Rights Agent
to expend or risk its own funds or otherwise incur any financial liability in
the performance of any of its duties hereunder or in the exercise of its rights
if there shall be reasonable grounds for believing that repayment of such funds
or adequate indemnification against such risk or liability is not reasonably
assured to it.
	 
	 	(k)	 	If, with respect to any Right Certificate surrendered to the
Rights Agent for exercise or transfer, the certificate attached to the form of
assignment or form of election to purchase, as the case may be, has not been
executed, the Rights Agent shall not take any further action with respect to
such requested exercise of transfer without first consulting with the Company.

30

 

	Section 21. 	 	Change of Rights Agent. The Rights Agent or any successor Rights Agent may resign and
be discharged from its duties under this Agreement upon 30 days’ notice in writing mailed to
the Company and to each transfer agent for the Common Shares or Preferred Shares by registered
or certified mail, and to the holders of the Right Certificates by first-class mail. In the
event the transfer agency relationship in effect between the Company and the Rights Agent
terminates, the Rights Agent will be deemed to have resigned automatically and be discharged
from its duties under this Agreement as of the effective date of such termination, and the
Company shall be responsible for sending any required notice. The Company may remove the
Rights Agent or any successor Rights Agent upon 30 days’ notice in writing, mailed to the
Rights Agent or successor Rights Agent, as the case may be, and to each transfer agent for the
Common Shares or Preferred Shares by registered or certified mail, and to the holders of the
Right Certificates by first-class mail. If the Rights Agent shall resign or be removed or
shall otherwise become incapable of acting, the Company shall appoint a successor to the
Rights Agent. If the Company shall fail to make such appointment within a period of 30 days
after giving notice of such removal or after it has been notified in writing of such
resignation or incapacity by the resigning or incapacitated Rights Agent or by the holder of a
Right Certificate (who shall, with such notice, submit his Right Certificate for inspection by
the Company), then the registered holder of any Right Certificate may apply to any court of
competent jurisdiction for the appointment of a new Rights Agent. Any successor Rights Agent,
whether appointed by the Company or by such a court, shall be a corporation, trust company or
limited liability company organized and doing business under the laws of the United States, in
good standing, which is authorized under such laws to exercise corporate trust or stock
transfer powers and is subject to supervision or examination by federal or state authority and
which has individually or combined with an affiliate at the time of its appointment as a
Rights Agent a combined
capital and surplus of at least $50 million dollars. After appointment, the
successor Rights Agent shall be vested with the same powers, rights, duties and
responsibilities as if it had been originally named as Rights Agent without
further act or deed; but the predecessor Rights Agent shall deliver and
transfer to the successor Rights Agent any property at the time held by it
hereunder, and execute and deliver any further assurance, conveyance, act or
deed necessary for the purpose. Not later than the effective date of any such
appointment the Company shall file notice thereof in writing with the
predecessor Rights Agent and each transfer agent for the Common Shares or
Preferred Shares, and mail a notice thereof in writing to the registered
holders of the Right Certificates. Failure to give any notice provided for in
this Section 21, however, or any defect therein, shall not affect the legality
or validity of the resignation or removal of the Rights Agent or the
appointment of the successor Rights Agent, as the case may be.
	 
	Section 22. 	 	Issuance of New Right Certificates. Notwithstanding
any of the provisions of this Agreement or of the
Rights to the contrary, the Company may, at its
option, issue new Right Certificates evidencing
Rights in such form as may be approved by its Board
of Directors to reflect any adjustment or change in
the Purchase Price and the number or kind or class of shares or other securities or property 

31

 

	 	 	 	purchasable
under the Right Certificates made in accordance with
the provisions of this Agreement. In addition, in
connection with the issuance or sale of Common Shares
following the Distribution Date and prior to the
earlier of the Redemption Date and the Final
Expiration Date, the Company (a) shall with respect
to Common Shares so issued or sold pursuant to the
exercise of stock options or under any employee plan
or arrangement in existence prior to the Distribution
Date, or upon the exercise, conversion or exchange of
securities, notes or debentures issued by the Company
and in existence prior to the Distribution Date, and
(b) may, in any other case, if deemed necessary or
appropriate by the Board of Directors, issue Right
Certificates representing the appropriate number of
Rights in connection with such issuance or sale;
provided, however, that (i) the Company shall not be
obligated to issue any such Right Certificates if,
and to the extent that, the Company shall be advised
by counsel that such issuance would create a
significant risk of material adverse tax consequences
to the Company or the Person to whom such Right
Certificate would be issued, and (ii) no Right
Certificate shall be issued if, and to the extent
that, appropriate adjustment shall otherwise have
been made in lieu of the issuance thereof.

	Section 23. 	 	Redemption.

	 	(a)	 	The Rights may be redeemed by action of the Board of Directors
pursuant to Section 23(b) hereof and shall not be redeemed in any other manner.
	 
	 	(b)	 	 

	 	(i)	 	The Board of Directors may, at its option, at
any time prior to the earlier of (A) such time as any Person becomes an
Acquiring Person or (B) the Final Expiration Date, redeem all but not
less than all of the then outstanding Rights at a redemption price of
$0.001 per Right, appropriately adjusted to reflect any stock split,
stock dividend or similar transaction occurring after the date hereof
(such redemption price being hereinafter referred to as the
“Redemption Price”), and the Company may, at its option, pay the
Redemption Price in Common Shares (based on the “current per-share
market price,” as such term is defined in Section 11(d) hereof, of
the Common Shares at the time of redemption), cash or any other form
of consideration deemed appropriate by the Board of Directors. The
redemption of the Rights by the Board of Directors may be made
effective at such time, on such basis and subject to such conditions
as the Board of Directors in its sole discretion may establish.
Notwithstanding anything contained in this Agreement to the contrary,
the Rights shall not be exercisable pursuant to Section 11(a)(ii)
hereof prior to the expiration or termination of the Company’s right
of redemption under this Section 23(b)(i).
	 
	 	(ii)	 	In addition, the Board of Directors may, at its
option, at any time after the time a Person becomes an Acquiring Person
and after the

32

 

	 	 	 	expiration of any period during which the holder of
Rights may exercise the rights under Section 11(a)(ii) hereof but prior
to any event described in clause (x), (y) or (z) of the first sentence
of Section 13 hereof, redeem all but not less than all of the then
outstanding Rights at the Redemption Price (x) in connection with any
merger, consolidation or sale or other transfer (in one transaction or
in a series of related transactions) of assets or earning power
aggregating 50% or more of the assets or earning power of the Company
and its subsidiaries (taken as a whole) in which all holders of Common
Shares are treated alike and not involving (other than as a holder of
Common Shares being treated like all other such holders) an Interested
Shareholder or a Transaction Person or (y)(A) if and for so long as the
Acquiring Person is not thereafter the Beneficial Owner of 15% or more
of the then outstanding Common Shares, and (B) at the time of
redemption no other Persons are Acquiring Persons.

	 	(c)	 	Immediately upon the action of the Board of Directors ordering
the redemption of the Rights pursuant to Section 23(b) hereof, and without any
further action and without any notice, the right to exercise the Rights will
terminate and the only right thereafter of the holders of Rights shall be to
receive the Redemption Price. The Company shall promptly give public notice of
any such redemption; provided, however, that the failure to give, or any defect
in, any such notice shall not affect the validity of such redemption. Within
10 days after such action of the Board of Directors ordering the redemption of
the Rights pursuant to Section 23(b) hereof, the Company shall mail a notice of
redemption to all the holders of the then outstanding Rights at their last
addresses as they appear upon the registry books of the Rights Agent or, prior
to the Distribution Date, on the registry books of the transfer agent for the
Common Shares, provided,
however, that failure to give, or any defect in, any such notice shall not
affect the validity of such redemption. Any notice which is mailed in the
manner herein provided shall be deemed given, whether or not the holder
receives the notice. Each such notice of redemption will state the method
by which the payment of the Redemption Price will be made. Neither the
Company nor any of its Affiliates or Associates may redeem, acquire or
purchase for value any Rights at any time in any manner other than that
specifically set forth in this Section 23 or in Section 24 hereof, and other
than in connection with the purchase of Common Shares prior to the
Distribution Date.
	 
	 	(d)	 	The Company may, at its option, discharge all of its
obligations with respect to any redemption of the Rights by (i) issuing a press
release announcing the manner of redemption of the Rights and (ii) mailing
payment of the Redemption Price to the registered holders of the Rights at
their last addresses as they appear on the registry books of the Rights Agent
or, prior to the Distribution Date, on the registry books of the transfer agent
for the Common Shares, and upon such action, all outstanding Right Certificates
shall be null and void without any further 

33

 

	 	 	 	action by the Company.

	Section 24. 	 	Exchange.

	 	(a)	 	The Board of Directors may, at its option, at any time after
any Person becomes an Acquiring Person, exchange all or part of the then
outstanding and exercisable Rights (which shall not include Rights that have
become void pursuant to the provisions of Section 11(a)(ii) hereof) for Common
Shares at an exchange ratio of one Common Share per Right, appropriately
adjusted to reflect any stock split, stock dividend or similar transaction
occurring after the date hereof (such exchange ratio being hereinafter referred
to as the “Exchange Ratio”). Notwithstanding the foregoing, the Board of
Directors shall not be empowered to effect such exchange at any time after any
Person (other than the Company, any Subsidiary of the Company, any employee
benefit plan of the Company or any such Subsidiary, or any entity holding
Common Shares for or pursuant to the terms of any such plan), together with all
Affiliates and Associates of such Person, becomes the Beneficial Owner of 50%
or more of the Common Shares then outstanding.
	 
	 	(b)	 	Immediately upon the action of the Board of Directors ordering
the exchange of any Rights pursuant to Section 24(a) hereof and without any
further action and without any notice, the right to exercise such Rights shall
terminate and the only right thereafter of a holder of such Rights shall be to
receive that number of Common Shares equal to the number of such Rights held by
such holder multiplied by the Exchange Ratio. The Company shall promptly give
public notice of any such exchange; provided, however, that the failure to
give, or any defect in, such notice shall not affect the validity of such
exchange. The Company promptly shall mail a notice of any such exchange to all
of the holders of such
Rights at their last addresses as they appear upon the registry books of the
Rights Agent; provided, however, that the failure to give, or any defect in,
such notice shall not affect the validity of such exchange. Any notice
which is mailed in the manner herein provided shall be deemed given, whether
or not the holder receives the notice. Each such notice of exchange will
state the method by which the exchange of the Common Shares for Rights will
be effected and, in the event of any partial exchange, the number of Rights
which will be exchanged. Any partial exchange shall be effected pro rata
based on the number of Rights (other than Rights which have become void
pursuant to the provisions of Section 11(a)(ii) hereof) held by each holder
of Rights.
	 
	 	(c)	 	In lieu of issuing Common Shares in accordance with Section
24(a) hereof, the Company may, if a majority of the Board of Directors then in
office determines that such action is necessary or appropriate and not contrary
to the interests of the holders of Rights, elect to (and, in the event that
there are not sufficient treasury shares (if applicable) and authorized but
unissued Common Shares to permit any exchange of the Rights in accordance with
Section 24(a) hereof, the Company shall) take all such 

34

 

	 	 	 	action as may be
necessary to authorize, issue or pay, upon the exchange of the Rights, cash
(including by way of a reduction of the Purchase Price), property, Common
Shares, other securities or any combination thereof having an aggregate value
equal to the value of the Common Shares which otherwise would have been
issuable pursuant to Section 24(a) hereof, which aggregate value shall be
determined by a nationally recognized investment banking firm selected by a
majority of the Board of Directors then in office. For purposes of the
preceding sentence, the value of the Common Shares shall be determined pursuant
to Section 11(d) hereof. Any election pursuant to this Section 24(c) by the
Board of Directors must be made by resolution within 60 days following the date
on which the event described in Section 11(a)(ii) hereof shall have occurred.
Following the occurrence on the event described in Section 11(a)(ii) hereof, a
majority of the Board of Directors then in office may suspend the
exercisability of the Rights for a period of up to 60 days following the date
on which the event described in Section 11(a)(ii) hereof shall have occurred to
the extent that such directors have not determined whether to exercise their
rights of exchange under this Section 24(c). In the event of any such
suspension, the Company shall issue a public announcement stating that the
exercisability of the Rights has been temporarily suspended.

	 	(d)	 	The Company shall not be required to issue fractions of Common
Shares or to distribute certificates which evidence fractional Common Shares.
In lieu of such fractional Common Shares, the Company shall pay to the
registered holders of the Right Certificates with regard to which such
fractional Common Shares would otherwise be issuable an amount in cash equal to
the same fraction of the current market value of a whole Common Share. For the
purposes of this Section 24(d), the current market value of a whole Common
Share shall be the closing price of a Common Share (as
determined pursuant to the second sentence of Section 11(d)(i) hereof) for
the Trading Day immediately after the date of the first public announcement
by the Company that an exchange is to be effected pursuant to this
Section 24.

	 	(e)	 	The Company shall not be required to issue fractions of
Preferred Shares (other than fractions which are integral multiples of one
one-hundredth of a Preferred Share) upon exchange of the Rights or to
distribute certificates which evidence fractional Preferred Shares (other than
fractions which are integral multiples of one one-hundredth of a Preferred
Share). Fractions of Preferred Shares in integral multiples of one
one-hundredth of a Preferred Share may, at the election of the Company, be
evidenced by depositary receipts; provided, however, that holders of such
depositary receipts shall have all of the rights, privileges, and preferences
to which they are entitled as beneficial owners of the Preferred Shares
represented by such depositary receipts. In lieu of fractional Preferred
Shares that are not integral multiples of one one-hundredth of a Preferred
Share, the Company shall pay to the registered holders of Right Certificates at
the time such Rights are exercised as herein provided an amount in cash equal

35

 

	 	 	 	to the same fraction of the current market value of one Preferred Share. For
the purposes of this Section 24(e), the current market value of a Preferred
Share shall be one hundred (100) times the closing price of a Common Share (as
determined pursuant to the second sentence of Section 11(d)(i) hereof) for the
Trading Day immediately after the date of the first public announcement by the
Company that an exchange is to be effected pursuant to this Section 24.

	Section 25. 	 	Notice of Certain Events.

	 	(a)	 	In case the Company shall propose (i) to pay any dividend
payable in stock of any class to the holders of its Preferred Shares or to make
any other distribution to the holders of its Preferred Shares (other than a
regular quarterly cash dividend), (ii) to offer to the holders of its Preferred
Shares rights or warrants to subscribe for or to purchase any additional
Preferred Shares or shares of stock of any class or any other securities,
rights or options, (iii) to effect any reclassification of its Preferred Shares
(other than a reclassification involving only the subdivision of outstanding
Preferred Shares), (iv) to effect any consolidation or merger into or with, or
to effect any sale or other transfer (or to permit one or more of its
Subsidiaries to effect any sale or other transfer), in one or more
transactions, of 50% or more of the assets or earning power of the Company and
its Subsidiaries (taken as a whole), to any other Person, (v) to effect the
liquidation, dissolution or winding up of the Company, or (vi) to declare or
pay any dividend on the Common Shares payable in Common Shares or to effect a
subdivision, combination or consolidation of the Common Shares (by
reclassification or otherwise than by payment of dividends in Common Shares),
then, in each such case, the Company shall give to each holder of a Right
Certificate, in accordance with Section 26 hereof, a notice of such proposed
action, which shall specify
the record date for the purpose of such stock dividend, or distribution of
rights or warrants, or the date on which such reclassification,
consolidation, merger, sale, transfer, liquidation, dissolution, or winding
up is to take place and the date of participation therein by the holders of
the Common Shares and/or the Preferred Shares, if any such date is to be
fixed, and such notice shall be so given in the case of any action covered
by clause (i) or (ii) above at least 10 days prior to the record date for
determining holders of the Preferred Shares for purposes of such action, and
in the case of any such other action, at least 10 days prior to the date of
the taking of such proposed action or the date of participation therein by
the holders of the Common Shares and/or the Preferred Shares, whichever
shall be the earlier.
	 
	 	(b)	 	In case the event set forth in Section 11(a)(ii) hereof shall
occur, then the Company shall as soon as practicable thereafter give to each
holder of a Right Certificate, in accordance with Section 26 hereof, a notice
of the occurrence of such event, which notice shall describe the event and the
consequences of the event to holders of Rights under Section 11(a)(ii) hereof.

36

 

	Section 26. 	 	Notices.  Notices or demands authorized by this Agreement to be given or made
by the Rights Agent or by the holder of any Right Certificate to or on the Company shall be
sufficiently given or made if sent by first-class mail or overnight delivery service, postage
prepaid, addressed (until another address is filed in writing with the Rights Agent) as
follows:

Aradigm Corporation

3929 Point Eden Way

Hayward, CA 94545

Attn: Chief Financial Officer

	 	 	 	Subject to the provisions of Section 21 hereof, any notice or demand authorized by
this Agreement to be given or made by the Company or by the holder of any Right
Certificate to or on the Rights Agent shall be sufficiently given or made if sent by
first-class mail or overnight delivery service, postage prepaid, addressed (until
another address is filed in writing with the Company) as follows:

Computershare Trust Company, N.A.

250 Royall Street

Canton, MA 02021

Attn: Client Administration

	 	 	 	Notices or demands authorized by this Agreement to be given or made by the Company
or the Rights Agent to the holder of any Right Certificate shall be sufficiently
given or made if sent by first-class mail or overnight delivery service, postage
prepaid, addressed to such holder at the address of such holder as shown on the
registry books of the Company.

	Section 27. 	 	Supplements and Amendments. Prior to the Distribution Date,
the Company and the Rights Agent shall, if the Company so
directs, supplement or amend any provision of this Agreement
without the approval of any holders of the Rights. From and
after the Distribution Date, the Company and the Rights Agent
shall, if the Company so directs, from time to time supplement
or amend any provision of this Agreement without the approval
of any holders of Right Certificates in order to (i) cure any
ambiguity, (ii) correct or supplement any provision contained
herein which may be defective or inconsistent with any other
provisions herein, or (iii) change any other provisions with
respect to the Rights which the Company may deem necessary or
desirable; provided, however, that no such supplement or
amendment shall be made which would adversely affect the
interests of the holders of Rights (other than the interests
of an Acquiring Person or its Affiliates or Associates). Any
supplement or amendment adopted during any period after any
Person has become an Acquiring Person but prior to the
Distribution Date shall become null and void unless such
supplement or amendment could have been adopted by the Company
from and after the Distribution Date. Any such supplement or
amendment shall be evidenced by a writing signed by the
Company and the Rights Agent. Upon delivery of a certificate
from an appropriate officer of the Company which states that
the proposed supplement or amendment is in compliance with the
terms of this Section 27, the Rights Agent shall execute such
supplement or amendment unless the Rights Agent shall have

37

 

	 	 	determined in good faith that such supplement or amendment
would adversely affect its interest under this Agreement.
Prior to the Distribution Date, the interests of the holders
of Rights shall be deemed coincident with the interests of the
holders of Common Shares.
	 
	Section 28. 	 	Determination and Actions by the Board of Directors, etc. For
all purposes of this Agreement, any calculation of the number
of Common Shares outstanding at any particular time, including
for purposes of determining the particular percentage of such
outstanding Common Shares or any other securities of which any
Person is the Beneficial Owner, shall be made in accordance
with the last sentence of Rule 13d-3(d)(1)(i) of the General
Rules and Regulations under the Exchange Act as in effect on
the date of this Agreement. The Board of Directors of the
Company shall have the exclusive power and authority to
administer this Agreement and to exercise all rights and
powers specifically granted to the Board, or the Company, or
as may be necessary or advisable in the administration of this
Agreement, including without limitation, the right and power
to (i) interpret the provisions of this Agreement, and
(ii) make all determinations deemed necessary or advisable for
the administration of this Agreement (including a
determination to redeem or not redeem the Rights or to amend
the Agreement). All such actions, calculations,
interpretations and determinations (including, for purposes of
clause (y) below, all omissions with respect to the foregoing)
which are done or made by the Board in good faith, shall
(x) be final, conclusive and binding on the Rights Agent and
the holders of the Rights, and (y) not subject the Board to
any liability to the holders of the Rights.
	 
	Section 29. 	 	Successors. All the covenants and provisions of this
Agreement by or for the benefit of the Company or the Rights
Agent shall bind and inure to the benefit of their respective successors and assigns hereunder.
	 
	Section 30. 	 	Benefits of this Agreement. Nothing in this Agreement shall be construed to
give to any person or corporation other than the Company, the Rights Agent and
the registered holders of the Right Certificates (and, prior to the
Distribution Date, the Common Shares) any legal or equitable right, remedy or
claim under this Agreement; but this Agreement shall be for the sole and
exclusive benefit of the Company, the Rights Agent and the registered holders
of the Right Certificates (and, prior to the Distribution Date, the Common
Shares).
	 
	Section 31. 	 	Severability. If any term, provision, covenant or restriction of this
Agreement is held by a court of competent jurisdiction or other authority to
be invalid, void or unenforceable, the remainder of the terms, provisions,
covenants and restrictions of this Agreement shall remain in full force and
effect and shall in no way be affected, impaired or invalidated.
	 
	Section 32. 	 	Governing Law. This Agreement and each Right Certificate issued hereunder
shall be deemed to be a contract made under the laws of the State of
California and for all purposes shall be governed by and construed in
accordance with the laws of such State applicable to contracts to be made and
performed entirely within such State.

38

 

	Section 33. 	 	Counterparts. This Agreement may be executed in any number of counterparts
and each of such counterparts shall for all purposes be deemed to be an
original, and all such counterparts shall together constitute but one and the
same instrument.
	 
	Section 34. 	 	Descriptive Headings. Descriptive headings of the several Sections of this
Agreement are inserted for convenience only and shall not control or affect
the meaning or construction of any of the provisions hereof.
	 
	Section 35. 	 	 Force Majeure. Notwithstanding anything to the contrary contained herein, the
Rights Agent shall not be liable for any delays or failures in performance
resulting from acts beyond its reasonable control, including, without
limitation, acts of God, terrorist acts, shortage of supply, breakdowns or
malfunctions, interruptions or malfunction of computer facilities, or loss of
data due to power failures or mechanical difficulties with information storage
or retrieval systems, labor difficulties, war, or civil unrest.

39

 

     In Witness Whereof, parties whereto have caused this Agreement to be duly executed, all as of
the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	Attest:	 	 	 	Aradigm Corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ D. Jeffery Grimes
	 	 	 	By:
	 	/s/ Igor Gonda	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 	 	D. Jeffery Grimes	 	 	 	 	 	Igor Gonda, Ph.D.	 	 
	 	 	Vice President of Legal Affairs,	 	 	 	 	 	President and Chief Executive Officer	 	 
	 

	 	General Counsel and Secretary	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 
	Attest:	 	 	 	Computershare Trust Company, N.A.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ James Walsh
	 	 	 	By:
	 	/s/ Katherine Anderson	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	Relationship Manager
	 	 	 	Title:
	 	Managing Director	 	 

40

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	Section 1. Certain Definitions
	 	 	1	 
	 
	Section 2. Appointment of Rights Agent
	 	 	5	 
	 
	Section 3. Issue of Right Certificates
	 	 	5	 
	 
	Section 4. Form of Right Certificates
	 	 	7	 
	 
	Section 5. Countersignature and Registration
	 	 	8	 
	 
	Section 6.
Transfer, Split Up, Combination and Exchange of RighCertificates;
Mutilated, Destroyed, Lost or Stolen Right Certificates
	 	 	8	 
	 
	
Section 7. Exercise of Rights; Purchase Price; Expiration Date of Rights
	 	 	9	 
	 
	Section 8. Cancellation and Destruction of Right Certificates
	 	 	11	 
	 
	Section 9. Availability of Preferred Shares
	 	 	11	 
	 
	Section 10. Preferred Shares Record Date
	 	 	12	 
	 
	Section 11. Adjustment of Purchase Price, Number of Shares or Number of Rights
	 	 	12	 
	 
	Section 12. Certificate of Adjusted Purchase Price or Number of Shares
	 	 	21	 
	 
	Section 13. Consolidation, Merger or Sale or Transfer of Assets or Earning Power
	 	 	21	 
	 
	Section 14. Fractional Rights and Fractional Shares
	 	 	24	 
	 
	Section 15. Rights of Action
	 	 	26	 
	 
	Section 16. Agreement of Right Holders
	 	 	26	 
	 
	Section 17. Right Certificate Holder Not Deemed a Shareholder
	 	 	27	 
	 
	Section 18. Concerning the Rights Agent
	 	 	27	 
	 
	Section 19. Merger or Consolidation or Change of Name of Rights Agent
	 	 	28	 
	 
	Section 20. Duties of Rights Agent
	 	 	28	 
	 
	Section 21. Change of Rights Agent
	 	 	31	 
	 
	Section 22. Issuance of New Right Certificates
	 	 	31	 
	 
	Section 23. Redemption
	 	 	32	 
	 
	Section 24. Exchange
	 	 	34	 
	 
	Section 25. Notice of Certain Events
	 	 	36	 
	 
	Section 26. Notices
	 	 	37	 
	 
	Section 27. Supplements and Amendments
	 	 	37	 
	 
	Section 28. Determination and Actions by the Board of Directors, etc.
	 	 	38	 
	 
	Section 29. Successors
	 	 	38	 
	 
	Section 30. Benefits of this Agreement
	 	 	38	 

 

 

	 	 	 	 	 
	 	 	Page	 
	Section 31. Severability
	 	 	38	 
	 
	Section 32. Governing Law
	 	 	38	 
	 
	Section 33. Counterparts
	 	 	39	 
	 
	Section 34. Descriptive Headings
	 	 	39	 
	 
	Section 35. Force Majeure 
	 	 	39	 
	 
	 	 	 	 
	Section 36.
	 	 	 	 
	 
	 	 	 	 
	Exhibit A —  Form of Right Certificate
	 	 	 	 
	 
	Exhibit B —  Summary of Rights to Purchase Preferred Shares
	 	 	 	 

 

 

(Exhibit A to Amended and Restated Rights agreement)

Form of Right Certificate

			
	 	 	 
	Certificate No. R-
	 	                     Rights

NOT EXERCISABLE AFTER SEPTEMBER 8, 2018, OR EARLIER IF REDEMPTION OR EXCHANGE
OCCURS. THE RIGHTS ARE SUBJECT TO REDEMPTION AT $0.001 PER RIGHT AND TO EXCHANGE ON
THE TERMS SET FORTH IN THE RIGHTS AGREEMENT.

Right Certificate

ARADIGM CORPORATION

     This certifies that                      or registered assigns, is the registered owner of the
number of Rights set forth above, each of which entitles the owner thereof, subject to the terms,
provisions and conditions of the Amended and Restated Rights Agreement, dated as of September 5,
2008 (the “Rights Agreement”), between Aradigm Corporation, a California corporation (the
“Company”), and Computershare Trust Company, N.A. (the “Rights Agent”), to purchase from the
Company at any time after the Distribution Date (as such term is defined in the Rights Agreement)
and prior to 5:00 p.m., Eastern Time, on September 8, 2018 at the office of the Rights Agent
designated for such purpose, or at the office of its successor as Rights Agent, one one-hundredth
of a fully paid non-assessable share of Series A Junior Participating Preferred Stock (the
“Preferred Shares”), of the Company, at a purchase price of $9.00 per one one-hundredth of a
Preferred Share (the “Purchase Price”), upon presentation and surrender of this Right Certificate
with the Form of Election to Purchase duly executed. The number of Rights evidenced by this Right
Certificate (and the number of one one-hundredths of a Preferred Share which may be purchased upon
exercise hereof) set forth above, and the Purchase Price set forth above, are the number and
Purchase Price as of                     , based on the Preferred Shares as constituted at such date.

     From and after the time any Person becomes an Acquiring Person, (as such terms are defined in
the Rights Agreement), if the Rights evidenced by this Right Certificate are beneficially owned by
(i) an Acquiring Person or an Affiliate or Associate of any such Acquiring Person (as such terms
are defined in the Rights Agreement), (ii) a transferee of any such Acquiring Person, Associate or
Affiliate who becomes a transferee after the Acquiring Person becomes such, or (iii) under certain
circumstances specified in the Rights Agreement, a transferee of any such Acquiring Person,
Associate or Affiliate who becomes a transferee prior to or concurrently with the Acquiring Person
becoming such, such Rights shall become null and void without any further action and no holder
hereof shall have any right with respect to such Rights from and after the time any Person becomes
an Acquiring Person.

 

 

     As provided in the Rights Agreement, the Purchase Price and the number of one one-hundredths
of a Preferred Share which may be purchased upon the exercise of the Rights evidenced by this Right
Certificate are subject to modification and adjustment upon the happening of certain events.

     This Right Certificate is subject to all of the terms, provisions and conditions of the Rights
Agreement, as amended from time to time, which terms, provisions and conditions are hereby
incorporated herein by reference and made a part hereof and to which Rights Agreement reference is
hereby made for a full description of the rights, limitations of rights, obligations, duties and
immunities hereunder of the Rights Agent, the Company and the holders of the Right Certificates.
Copies of the Rights Agreement are on file at the principal executive offices of the Company and
the above-mentioned offices of the Rights Agent.

     This Right Certificate, with or without other Right Certificates, upon surrender at the office
of the Rights Agent designated for such purpose, may be exchanged for another Right Certificate or
Right Certificates of like tenor and date evidencing Rights entitling the holder to purchase a like
aggregate number of Preferred Shares as the Rights evidenced by the Right Certificate or Right
Certificates surrendered shall have entitled such holder to purchase. If this Right Certificate
shall be exercised in part, the holder shall be entitled to receive upon surrender hereof another
Right Certificate or Right Certificates for the number of whole Rights not exercised.

     Subject to the provisions of the Rights Agreement, the Rights evidenced by this Certificate
(i) may be redeemed by the Company at a redemption price of $0.001 per Right or (ii) may be
exchanged in whole or in part for shares of the Company’s Common Stock, no par value per share, or,
upon circumstances set forth in the Rights Agreement, cash, property or other securities of the
Company, including fractions of a share of Preferred Stock.

     No fractional Preferred Shares will be issued upon the exercise of any Right or Rights
evidenced hereby (other than fractions which are integral multiples of one one-hundredth of a
Preferred Share, which may, at the election of the Company, be evidenced by depositary receipts)
but in lieu thereof a cash payment will be made, as provided in the Rights Agreement.

     No holder of this Right Certificate shall be entitled to vote or receive dividends or be
deemed for any purpose the holder of the Preferred Shares or of any other securities of the Company
which may at any time be issuable on the exercise hereof, nor shall anything contained in the
Rights Agreement or herein be construed to confer upon the holder hereof, as such, any of the
rights of a shareholder of the Company or any right to vote for the election of directors or upon
any matter submitted to shareholders at any meeting thereof, or to give or withhold consent to any
corporate action, or to receive notice of meetings or other actions affecting shareholders (except
as provided in the Rights Agreement), or to receive dividends or subscription rights, or otherwise,
until the Right or Rights evidenced by this Right Certificate shall have been exercised as provided
in the Rights Agreement.

     This Right Certificate shall not be valid or obligatory for any purpose until it shall have
been countersigned by the Rights Agent.

     Witness the facsimile signature of the proper officers of the Company and its corporate seal.
Dated as of                     .

 

 

	 	 	 	 	 	 	 	 	 
	Attest:	 	ARADIGM COPORATION	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	[Signing Company Secretary’s Name]	 	[Signing Company Officer’s Name]	 	 
	[Title]	 	[Title]	 	 
	 
	 	 	 	 	 	 	 	 
	Countersigned:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	COMPUTERSHARE TRUST COMPANY, N.A.,	 	 	 	 
	as Rights Agent	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	[Authorized Signature]	 	 	 	 	 	 

 

 

Form of Reverse Side of Right Certificate

FORM OF ASSIGNMENT

(To be executed by the registered holder if such

holder desires to transfer the Right Certificate.)

     FOR VALUE RECEIVED                                          hereby sells, assigns and transfers
unto

	 	 	 
	 
	 	 
	                    (Please print name and address of transferee)

	 	 

                                         this Right
Certificate, together with all right, title and interest therein, and does hereby irrevocably
constitute and appoint                      Attorney, to transfer the within Right Certificate
on the books of the within-named Company, with full power of substitution.

Dated:                     

                                        

Signature

Form of Reverse Side of Right Certificate — continued

 

 

Signature Guaranteed:

     Signatures must be guaranteed by an “eligible guarantor institution” as defined in Rule
17Ad-15 promulgated under the Securities Exchange Act of 1934, as amended.

     The undersigned hereby certifies that (1) the Rights evidenced by this Right Certificate are
not being sold, assigned or transferred by or on behalf of a Person who is or was an Acquiring
Person, an Interested Shareholder or an Affiliate or Associate thereof (as such terms are defined
in the Rights Agreement); and (2) after due inquiry and to the best of the knowledge of the
undersigned, the undersigned did not acquire the Rights evidenced by this Right Certificate from
any Person who is or was an Acquiring Person, an Interested Shareholder, or an Affiliate or
Associate thereof.

                                        

Signature

 

 

FORM OF ELECTION TO PURCHASE

(To be executed if holder desires to exercise

Rights represented by the Right Certificate.)

To
              
[Rights Agent]               

     The undersigned hereby irrevocably elects to exercise                                          Rights
represented by this Right Certificate to purchase the Preferred Shares issuable upon the exercise
of such Rights and requests that certificates for such Preferred Shares be issued in the name of:

Please insert social security

or other identifying number:                     

	 	 	 
	 
	 	 
	                    (Please print name and address)

	 	 
	 
	 	 
	 
	 	 

If such number of Rights shall not be all the Rights evidenced by this Right Certificate, a new
Right Certificate for the balance remaining of such Rights shall be registered in the name of and
delivered to:

Please insert social security

or other identifying number:                     

	 	 	 
	 
	 	 
	                    (Please print name and address)

	 	 
	 
	 	 
	 
	 	 
	 
	Dated:                     
	 	 

                                        

Signature

Form of Reverse Side of Right Certificate — continued

 

 

Signature Guaranteed:

     Signatures must be guaranteed by an “eligible guarantor institution” as defined in Rule
17Ad-15 promulgated under the Securities Exchange Act of 1934, as amended.

     The undersigned hereby certifies that (1) the Rights evidenced by this Right Certificate are
not beneficially owned by nor are they being exercised on behalf of an Acquiring Person, an
Interested Shareholder or an Affiliate or Associate thereof (as such terms are defined in the
Rights Agreement); and (2) after due inquiry and to the best of the knowledge of the undersigned,
the undersigned did not acquire the Rights evidenced by this Right Certificate from any Person who
is or was an Acquiring Person, an Interested Shareholder, or an Affiliate or Associate thereof.

                                        

Signature

NOTICE

     The signature in the Form of Assignment or Form of Election to Purchase, as the case may be,
must conform to the name as written upon the face of this Right Certificate in every particular,
without alteration or enlargement or any change whatsoever.

     In the event the certification set forth above in the Form of Assignment or the Form of
Election to Purchase, as the case may be, is not completed, the Company and the Rights Agent will
deem the beneficial owner of the Rights evidenced by this Right Certificate to be an Acquiring
Person or an Affiliate or Associate thereof (as defined in the Rights Agreement) and such
Assignment or Election to Purchase will not be honored.

 

 

(Exhibit B to Amended and Restated Rights agreement)

ARADIGM CORPORATION

Summary of Rights to Purchase

Preferred Shares

     On August 4, 1998, the Board of Directors of ARADIGM CORPORATION (the “Company”) declared a
dividend of one preferred share purchase right (a “Right”) for each outstanding share of common
stock, without par value per share, (the “Common Shares”) of the Company. The dividend is
effective as of September 8, 1998 (the “Record Date”) with respect to the shareholders of record on
that date. The Rights will also attach to new Common Shares issued after the Record Date. Each
Right entitles the registered holder to purchase from the Company one one-hundredth of a share of
Series A Junior Participating Preferred Stock, without par value per share, (the “Preferred
Shares”) of the Company at a price of $9.00 per one one-hundredth of a Preferred Share (the
“Purchase Price”), subject to adjustment. Each Preferred Share is designed to be the economic
equivalent of 100 Common Shares. The description and terms of the Rights are set forth in an
amended and restated Rights Agreement dated as of September 5, 2008 (the “Rights Agreement”),
between the Company and Computershare Trust Company, N.A. (the “Rights Agent”).

Detachment and Transfer of Rights

     Initially, the Rights will be evidenced by the stock certificates representing Common Shares
then outstanding, and no separate Right Certificates will be distributed. Until the earlier to
occur of (i) a public announcement that a person or group of affiliated or associated persons, has
become an “Acquiring Person” (as such term is defined in the Rights Agreement) or (ii) 10 business
days (or such later date as the Board may determine) following the commencement of, or announcement
of an intention to make, a tender offer or exchange offer which would result in the beneficial
ownership by an Acquiring Person of 15% or more of the outstanding Common Shares (the earlier of
such dates being called the “Distribution Date”), the Rights will be evidenced, with respect to any
of the Common Share certificates outstanding as of the Record Date, by such Common Share
certificate. In general, an “Acquiring Person” is a person, the affiliates or associates of such
person, or a group, which has acquired beneficial ownership of 15% or more of the outstanding
Common Shares.

     The Rights Agreement provides that, until the Distribution Date (or earlier redemption or
expiration of the Rights), the Rights will be transferable with and only with the Common Shares.
Until the Distribution Date (or earlier redemption or expiration of the Rights), new Common Share
certificates issued after the Record Date upon transfer or new issuance of Common Shares will
contain a notation incorporating the Rights Agreement by reference. Until the Distribution Date
(or earlier redemption or expiration of the Rights) the surrender or transfer of any certificates
for Common Shares outstanding as of the Record Date, even without such notation or a copy of this
Summary of Rights being attached thereto, will also constitute the transfer of the Rights
associated with the Common Shares represented by such certificate. As soon as practicable
following the Distribution Date, separate certificates evidencing the Rights (“Right Certificates”)
will be mailed to holders of record of the Common Shares as of the close of

 

 

business on the Distribution Date and such separate Right Certificates alone will evidence the
Rights.

Exercisability of Rights

     The Rights are not exercisable until the Distribution Date. The Rights will expire on
September 8, 2018 (the “Final Expiration Date”), unless the Final Expiration Date is extended
or unless the Rights are earlier redeemed or exchanged by the Company, in each case as described
below. Until a Right is exercised, the holder thereof, as such, will have no rights as a
shareholder of the Company, including, without limitation, the right to vote or to receive
dividends.

     The Purchase Price payable, and the number of Preferred Shares or other securities or property
issuable or payable, upon exercise of the Rights are subject to adjustment from time to time to
prevent dilution. The number of outstanding Rights and the number of one one-hundredths of a
Preferred Share issuable upon exercise of each Right are also subject to adjustment in the event of
a stock split of the Common Shares or a stock dividend on the Common Shares payable in Common
Shares, or subdivisions, consolidations or combinations of the Common Shares occurring, in any such
case, prior to the Distribution Date. With certain exceptions, no adjustment in the Purchase Price
will be required until cumulative adjustments require an adjustment of at least 1% in such Purchase
Price. No fractional Preferred Shares will be issued (other than fractions which are integral
multiples of one one-hundredth of a Preferred Share, which may, at the election of the Company, be
evidenced by depositary receipts) and in lieu thereof, an adjustment in cash will be made based on
the market price of the Preferred Shares on the last trading day prior to the date of exercise.

Terms of Preferred Shares

     Preferred Shares purchasable upon exercise of the Rights will not be redeemable. Each
Preferred Share will be entitled to a minimum preferential quarterly dividend payment of $l per
share but will be entitled to an aggregate dividend of 100 times the dividend declared per Common
Share. In the event of liquidation, the holders of the Preferred Shares will be entitled to a
minimum preferential liquidation payment of $100 per share but will be entitled to an aggregate
payment of 100 times the payment made per Common Share. Each Preferred Share will have 100 votes,
voting together with the Common Shares. Finally, in the event of any merger, consolidation or
other transaction in which Common Shares are exchanged, each Preferred Share will be entitled to
receive 100 times the amount received per Common Share. These rights are protected by customary
anti-dilution provisions. Because of the nature of the Preferred Shares’ dividend, liquidation and
voting rights, the value of the one one-hundredth interest in a Preferred Share purchasable upon
exercise of each Right should approximate the value of one Common Share. The Preferred Shares
would rank junior to any other series of the Company’s preferred stock.

 

 

Trigger of Flip-In and Flip-Over Rights

     In the event that any person or group of affiliated or associated persons becomes an Acquiring
Person, proper provision shall be made so that each holder of a Right, other than Rights
beneficially owned by the Acquiring Person or any affiliate or associate thereof (which will
thereafter be void), will thereafter have the right to receive upon exercise that number of Common
Shares having a market value of two times the exercise price of the Right. This right will
commence on the date of public announcement that a person has become an Acquiring Person (or the
effective date of a registration statement relating to distribution of the rights, if later) and
terminate 60 days later (subject to adjustment in the event exercise of the rights is enjoined).

     In the event that the Company is acquired in a merger or other business combination
transaction or 50% or more of its consolidated assets or earning power are sold to an Acquiring
Person, its affiliates or associates or certain other persons in which such persons have an
interest, proper provision will be made so that each such holder of a Right will thereafter have
the right to receive, upon the exercise thereof at the then current exercise price of the Right,
that number of shares of common stock of the acquiring company which at the time of such
transaction will have a market value of two times the exercise price of the Right.

Redemption and Exchange of Rights

     At any time prior to the earliest of (i) the close of business on the day of the first public
announcement that a person has become an Acquiring Person, or (ii) the Final Expiration Date, the
Board of Directors of the Company may redeem the Rights in whole, but not in part, at a price of
$0.001 per Right (the “Redemption Price”). In general, the redemption of the Rights may be made
effective at such time on such basis with such conditions as the Board of Directors in its sole
discretion may establish. Immediately upon any redemption of the Rights, the right to exercise the
Rights will terminate and the only right of the holders of Rights will be to receive the Redemption
Price.

     At any time after any Person becomes an Acquiring Person and prior to the acquisition by such
person or group of 50% or more of the outstanding Common Shares, the Board of Directors of the
Company may exchange the Rights (other than Rights owned by such person or group which will have
become void), in whole or in part, at an exchange ratio of one Common Share, or, under
circumstances set forth in the Rights Agreement, cash, property or other securities of the Company,
including fractions of a Preferred Share (or of a share of a class or series of the Company’s
preferred stock having equivalent designations and the powers, preferences and rights, and the
qualifications, limitations and restrictions), per Right (with value equal to such Common Shares).

Amendment of Rights

     The terms of the Rights generally may be amended by the Board of Directors of the Company
without the consent of the holders of the Rights, except that from and after such time as the
Rights are distributed no such amendment may adversely affect the interests of the holders of the
Rights (excluding the interest of any Acquiring Person).

 

 

Additional Information

     A copy of the Rights Agreement will be filed with the Securities and Exchange Commission as an
exhibit to the Company’s next quarterly report on Form 10-Q. A copy of the Rights Agreement is
available from the Company by writing to: D. Jeffery Grimes, Aradigm Corporation, 3929 Point Eden
Way, Hayward, CA 94545. This summary description of the Rights is not intended to be complete and
is qualified in its entirety by reference to the Rights Agreement, which is hereby incorporated
herein by reference.exv10w27

EXHIBIT 10.27

NON-EXCLUSIVE RESELLER AGREEMENT

     This Agreement (the “Agreement”), effective as of June 1, 2008 (the “Effective Date”), is by
and between Applera Corporation, a Delaware corporation acting through its Applied Biosystems
Group, having a place of business at 850 Lincoln Centre Drive, Foster City, California 94404
(“ABI”), and BioTrove, Inc., a Delaware corporation having its principal place of business at 12
Gill St., Suite 4000, Woburn, MA 01801 (“BT”). ABI and BT are collectively referred to herein as
the “Parties” and each individually as a “Party.”

Background

     A. ABI, through its joint venture partner MDS Analytical Technologies, develops, manufactures,
markets and sells mass spectrometers and provides services in connection with such mass
spectrometers;

     B. BT is in the business of making and selling drug discovery systems known collectively as
the RapidFire System (defined below) which are used in conjunction with mass spectrometers from ABI
and other vendors, and provides drug discovery services using said RapidFire System with mass
spectrometers;

     C. ABI is willing to appoint BT as a non-exclusive reseller, within the Field and in the
Territory (as both terms are defined herein), of certain of ABI’s mass spectrometers, as further
described herein, and certain ABI services in relation to such mass spectrometers, but only to the
extent such mass spectrometers are resold in conjunction with BT’s RapidFire System, all subject to
and in accordance with the terms and conditions of this Agreement.

     NOW, THEREFORE, in consideration of these premises, the mutual covenants contained herein, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:

1. DEFINITIONS

     1.1 “Affiliate” means any corporation, firm, partnership, joint venture or other business
entity that controls, or is controlled by, or is under common control with, a Party. For purposes
of this Section 1.1, the term “control” means in the case of corporate entities, direct or indirect
ownership of more than fifty percent (50%) of the stock or shares having the right to vote for the
election of directors, and in the case of non-corporate entities, direct or indirect ownership of
more than fifty percent (50%) of the equity interest having the right to elect or appoint the
managers of the subject entity, or otherwise establish the management and policies of such entity.
Notwithstanding the foregoing, the term “Affiliate” shall include ABI’s joint venture with MDS Inc.
known as Applied Biosystems/MDS Analytical Technologies.

     1.2 “ABI MS” means the mass spectrometer system including mass spectrometer instrumentation
and software developed, manufactured and/or otherwise marketed and sold by or on behalf of ABI or
its Affiliates (and/or ABI joint venture partner MDS Analytical Technologies) which ABI and BT
mutually agree in writing is suitable for use with BT’s

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

 

 

RapidFire System and may be resold by BT under the terms and conditions of this Agreement, all
of which are listed in Exhibit A attached hereto and made a part hereof, along with the North
American price lists for such mass spectrometer instrumentation and the ABI Services related
thereto. Any mass spectrometers and/or related services in addition to those listed in Exhibit A
that ABI and BT agree are suitable for use with BT’s RapidFire System and may be resold by BT under
the terms and conditions of this Agreement shall be listed in Exhibit A pursuant to a formal
written amendment to this Agreement. For the purposes of this Agreement, ABI MS shall mean only
those mass spectrometers that are to be used in conjunction with the RapidFire System as set forth
in section 2.1.

     1.3 “ABI Services” means those aftermarket repair service packages to repair and maintain
performance of any ABI MS resold by BT for use in conjunction with the RapidFire System, which ABI
Services are listed in Exhibit A.

     1.4 “Accessories” means those products that are to be used in conjunction with any ABI MS that
is resold by BT pursuant to this Agreement.

     1.5 “Field” means high throughput screening of compounds for drug discovery including hut not
limited to primary screening, lead optimization, and ADMET profiling.

     1.6 “RapidFire System” means the front end system used in conjunction with mass spectrometers
and containing BT software, BT robotic liquid handling system, and other components designed by BT
for use in high throughput screening applications and sold by BT.

     1.7 “Territory” means North America (United States and Canada).

2. NON-EXCLUSIVE RESELLER GRANT

     2.1 Grant of Rights. ABI grants to BT the non-exclusive right to use, market, promote
and resell the ABI MS and related ABI Services and the Accessories in the Field and in the
Territory, but only to the extent the ABI MS is resold in conjunction with the RapidFire System in
the Field in the Territory. For clarity this right does not allow BT to resell any ABI MS or any
ABI Services or Accessories on a standalone basis as instruments, products or service contracts.
Therefore, BT shall incorporate the RapidFire System into each ABI MS that is resold hereunder,
within [***] after such ABI MS is installed by ABI at the end-user customer site and
tested and accepted by the customer in accordance with ABI’s procedures therefor. ABI’s
proprietary Analyst Software is included in the ABI MS sold by ABI to BT hereunder, and it is
understood and agreed that BT acquires no rights or licenses whatsoever to the Analyst Software
other than the right to resell such software as part of the ABI MS hereunder. The Analyst
Software, when resold to BT’s customers with the ABI MS hereunder, is subject to the terms and
conditions of the Software License Agreement for Applied Biosystems/MDS Sciex Analyst® Software
covering the specific version of Analyst Software included in the ABI MS sold by AB to BT hereunder
(the “Software License”). A copy of the Software license covering an earlier version 1.4 of the
Analyst Software, the terms and conditions of which shall also apply

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

2

 

to the version 1.5 of the Analyst Software that is included in the ABI MS sold by ABI to BT
hereunder, is attached hereto as Attachment 1 to Exhibit B and made a part hereof. Among other
things, BT acknowledges and agrees (and shall ensure that its customers acknowledge and agree) that
the Software License is a limited license that is personal to BT’s customers, and that BT’s
customers may not and shall not transfer, assign or sublicense the Software License to any third
party, even if such third party purchases the aforementioned ABI MS, and any third party purchaser
would be required to obtain a separate Software License from ABI.

     2.2 No Implied Rights. Except as set forth expressly and specifically in this
Agreement, BT shall not acquire any right or license by implication, estoppel or otherwise under
any intellectual property rights of ABI in any ABI MS or other ABI property.

     2.3 BT shall resell the ABI MS on the terms and conditions set forth in the Applied Biosystems
General Terms and Conditions of Sale attached hereto as Exhibit B and made a part hereof (the “ABI
MS Terms and Conditions”). Accordingly, BT is not authorized and shall not market, promote, offer
to resell or resell any ABI MS on terms and conditions other than the ABI MS Terms and Conditions
and any other terms and conditions on which the ABI MS is marketed, promoted, offered for sale or
resold shall be void and of no force and effect, and BT’s marketing, promotion, offer to resell or
resale of any ABI MS on terms and conditions other than the ABI MS Terms and Conditions shall be a
material breach of this Agreement. ABI in its sole discretion may modify the ABI MS Terms and
Conditions at any time on ninety (90) days prior written notice to BT. Such modification shall not
affect the resales of ABI MS which are already contracted for by BT and all such changes shall be
consistent with the terms of this Reseller Agreement.

     2.4 BT shall resell the ABI Services on the terms and conditions set forth in the Applied
Biosystems Performance Agreement Terms and Conditions attached hereto as Exhibit C and made a part
hereof (the “ABI Performance Agreement”). Accordingly, BT is not authorized and shall not market,
promote, offer to resell or resell any ABI Services on terms and conditions other than the terms
and conditions set forth in the ABI Performance Agreement and any other terms and conditions on
which the ABI Services are marketed, promoted, offered for sale or resold shall be void and of no
force and effect, and BT’s marketing, promotion, offer to resell or resale of any ABI Services on
terms and conditions other than the ABI Performance Agreement shall be a material breach of this
Agreement. ABI in its sole discretion may modify the ABI Performance Agreement at any time on
ninety (90) days prior written notice to BT. Such modification shall not affect the resales of ABI
Services which are already contracted for by BT and all such changes shall be consistent with the
terms of this Reseller Agreement.

3. BT’s OBLIGATIONS

     3.1 Beginning as soon as practicable after the Effective Date, BT shall commence using
commercially reasonable efforts to resell the ABI MS, Accessories and ABI Services in the Field in
the Territory pursuant to the grant of rights in Section 2.1, and in performance of these duties BT
shall:

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

3

 

          (a) resell ABI MS and ABI Services consistent with the terms and conditions as set forth in
the ABI MS Terms and Conditions and ABI Performance Agreement set forth in Exhibits B and C,
respectively, including without limitation, the terms and conditions of the Software License
attached hereto as Attachment 1 to Exhibit B;

          (b) market, promote and resell ABI MS in a manner consistent with the specifications therefor
as set forth in Exhibit D attached hereto and made a part hereof (“ABI MS Specifications”), which
ABI MS Specifications may be modified by ABI in its sole discretion at any time on ninety (90) days
prior written notice to BT.

          (c) be solely responsible for managing the initial customer interface for the ABI MS through
the point at which the resale and installation (including any testing and acceptance by the
customer) of the ABI MS, and the integration of the ABI MS with the RapidFire System, have been
completed. BT agrees to provide to ABI on a timely basis all relevant customer contact information
to allow ABI to coordinate the timing of the delivery and installation of the ABI MS, and to
provide support to customers for the ABI MS, Accessories and ABI Services as such support is
requested by BT. For clarity, it is understood and agreed that ABI, and not BT, shall be solely
responsible for the servicing, maintenance and repair of all ABI MS resold under this Agreement,
all of which shall be carried out by ABI pursuant to the ABI Services contracts that are resold by
BT pursuant to this Agreement;

          (d) provide ABI with prompt written notification of all orders for the RapidFire System that
are received by BT, that include ABI MS, and provide ABI with copies of bona fide written purchase
orders for the ABI MS sold in conjunction with the RapidFire system, within five (5) business days
of BT’s receipt of such order(s);

          (e) provide ABI with prompt written notification of all orders for the ABI Services that are
received by BT in conjunction with sales of ABI MS sold with a RapidFire System, and provide ABI
with copies of bona fide written purchase orders for the ABI Services, within five (5) business
days of BT’s receipt of such order(s);

          (f) work with ABI to enable shipment of the ABI MS to the end user customer site as soon as
possible following BT’s receipt of the purchase order for each RapidFire System that includes an
ABI MS, such shipment to be within the desired installation timeframe specified by the end user,
subject to ABI’s ordering, delivery and installation procedures and schedules. Shipment of the ABI
MS and any Accessories shall be Ex Works (Incoterms 2000) by ABI directly to the end user customer
site. BT shall be solely responsible for shipping, in accordance with ABI’s handling and shipping
instructions, the ABI MS and any Accessories from the facility where such ABI MS or Accessories
have been manufactured or are stored on behalf of ABI, to the end user customer site, and BT shall
assume title and risk of loss and damage to the ABI MS and any Accessories upon delivery of the ABI
MS or Accessories by ABI to the common carrier at the loading dock of ABI or its manufacturer or
other designee. Accordingly, BT shall be solely responsible for the payment of any and all costs
and expenses associated with the shipment of the ABI MS and any Accessories from ABI or its
manufacturer

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

4

 

or other designee to the end user customer site, including without limitation, any and all
transportation charges, and BT shall insure the replacement cost of the ABI MS and any Accessories
while in transit. For clarity, it is understood and agreed that on and after the transfer of title
of an ABI MS or any Accessories from ABI to BT hereunder, BT shall assume all responsibility
associated with owning such ABI MS or Accessories, even if such ABI MS or Accessories are not
resold by BT to a third party, and regardless of whether a third party pays or fails to pay BT for
such ABI MS or Accessories;

          (g) coordinate with ABI the installation, testing and acceptance of the ABI MS at the end user
customer site (which installation, testing and acceptance procedures shall be carried out solely by
ABI at the end user customer site);

          (h) coordinate with ABI the provision of ABI Services to BT’s end user customers pursuant to
ABI Services contracts;

          (i) maintain appropriate levels of personnel and resources for effective marketing, promotion
and resale of the AB MS in conjunction with the RapidFire System, and the ABI Services, including
the initial and on-going training of BT’s sales, marketing, and support personnel in the Territory,
all of whom shall be qualified and trained to perform the marketing, promotion and resale of the AB
MS in conjunction with the RapidFire System, and the ABI Services, in accordance with all
applicable laws and regulations, industry standards and exercising the highest levels of
professionalism and integrity;

          (j) use commercially reasonable efforts to promote or market the use of ABI MS on a
non-exclusive basis in conjunction with the RapidFire System to BT’s customers and prospective
customers for mass spectrometry instrument systems in BT’s demonstration centers, at company
sponsored seminars, and other venues, and promote or market the use of ABI Services in connection
therewith;

          
(k) not disparage any ABI MS, Accessories, ABI Services or ABI
in any manner and refrain from
[***] regarding any [***] that are
not [***] in this Agreement, and shall [***] to [***] only those
[***] that are [***] for in this Agreement;

          (l) communicate with ABI representatives on a regular basis as reasonably requested by ABI
(but no less frequently than quarterly), to discuss sales volumes, forecasts, unmet market needs,
competitive intelligence and general market conditions;

          (m) be solely responsible for marketing, promotion and sales of the RapidFire System whether
alone or in conjunction with ABI MS, and associated contract drug discovery services in the
Territory; and

          (n) within ninety (90) days of signing this Agreement, meet with representatives of ABI to
develop logistics for handling customer complaints and other customer

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

5

 

issues in a seamless fashion which would, at a minimum, include coordination of installations,
planned maintenance, cross training, customer escalation (from first line support to second line
support) and customer tracking and notification. The Parties shall, as a result of such meeting,
amend this Agreement accordingly to address: ABI’s ordering, delivery and installation procedures
and schedules for ABI MS, ABI’s installation, testing and acceptance procedures for ABI MS, and
first line and second line support to be provided to BT’s customers by BT and ABI, respectively.

4. ABI OBLIGATIONS

     4.1 ABI shall supply BT’s customers with ABI MS, Accessories and ABI Services in accordance
with the terms and conditions of this Agreement, and ABI’s duties as supplier of the ABI MS,
Accessories and ABI Services shall be as follows:

          (a) ABI agrees to manufacture (or have manufactured) and sell to BT, ABI MS meeting the ABI MS
Specifications, and Accessories, at the price(s) set forth in Section 5.1;

          (b) ABI will be solely responsible for providing the ABI Services directly to BT’s end user
customers;

          (c) ABI will be solely responsible for installing the ABI MS, working directly with the end
user customer with respect to the testing and acceptance of the ABI MS, all in accordance with
ABI’s installation, testing and acceptance procedures;

          (d) ABI will provide training at its own expense on the ABI MS and ABI Services to BT sales,
marketing, and support personnel as needed in the Territory in a format agreed by the Parties in
writing;

          (e) ABI shall provide BT with suitable technical documentation to support the marketing,
promotion and resale of ABI MS and ABI Services; and

          (f) ABI shall supply sales leads to BT in the Territory for prospective resales of the ABI MS
in conjunction with the RapidFire System; and

          (g) within ninety (90) days of signing this Agreement, meet with representatives of BT to
develop logistics for handling customer complaints and other customer issues in a seamless fashion
which would, at a minimum, include coordination of installations, planned maintenance, cross
training, customer escalation (from first line support to second line support) and customer
tracking and notification. The Parties shall, as a result of such meeting, amend this Agreement
accordingly to address: ABI’s ordering, delivery and installation procedures and schedules for ABI
MS, ABI’s installation, testing and acceptance procedures for ABI MS, and first line and second
line support to be provided to BT’s customers by BT and ABI, respectively.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

6

 

          (h) work with BT to ship, deliver and install the ABI MS to the end user customer site as soon
as commercially practicable following ABI’s receipt of the purchase order for each RapidFire System
that includes an ABI MS, such that ABI shall endeavor in good faith to make such shipment and
installation to be within the desired timeframe specified by the customer, provided that such
delivery and installation timeframe is agreed by ABI.

          (i) ABI will agree to abide by the general terms and conditions set forth in Exhibits B and C.

5. PRICING AND PAYMENTS

     5.1 Pricing. ABI will sell the ABI MS to BT at a price that is [***] for such ABI MS
(which North American list price for the ABI MS is set forth in Exhibit A), exclusive of
Accessories. Should ABI agree to sell an ABI MS to a customer at a
price that is [***], ABI will [***] of the [***] to
the [***]. ABI will sell Accessories for the ABI MS to BT [***] at a [***], as and when
Accessories are requested by BT. ABI will sell ABI Services to BT at a price that is [***] for
such ABI Services (which North American list price for the ABI Services is set forth in Exhibit A).
BT will [***] of the [***]. BT shall resell Accessories at [***]. ABI reserves the right to
make adjustments to the North American list price for ABI MS and/or
ABI Services [***], and will provide BT written
notice of any such adjustment at least [***] prior to
making such adjustment. No such price adjustment will affect any products or services for which orders have already been received by ABI
pursuant to this Agreement.

     5.2 Payments.
All payments to be made hereunder shall be due and payable within
[***] from the date of the invoice issued by ABI to BT. All payments shall be made
in U.S. Dollars, without deduction or offset. Any amounts which remain unpaid more than thirty
(30) days after the date on which they are due shall accrue interest until paid at the rate of the
lesser of one half of one percent (0.5%) per month or the maximum amount allowed under applicable
law. However, in no event shall this interest provision be construed as a grant of permission for
any payment delays.

     5.3 Taxes. BT shall be solely responsible and liable for the payment of any and all
taxes (other than income taxes of ABI) and other governmental fees, charges, levies and assessments
(including any interest or penalties for late payment thereof) (collectively, “Taxes”) that are
incurred in connection with the marketing, promotion and/or resale of the ABI MS and ABI Services,
and BT shall defend, indemnify and hold ABI and its Affiliates and their respective directors,
officers, agents and employees from and against any such Taxes, including without limitation the
payment of any reasonable attorneys fees and costs of litigation regardless of outcome.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

7

 

6. ABI LIMITED WARRANTY AND LIMITATION OF LIABILITY

     6.1 ABI warrants that the ABI MS and Accessories, in the form it is sold to BT hereunder, will
upon delivery to the common carrier at the dock of ABI or its manufacturer or other designee, be
free of defects in materials and workmanship for a period of one (1) year from the date of the
installation of the ABI MS at the customer facility (the “Warranty Period”). ABI at its sole
election, will either: (i) replace free of charge, any ABI MS parts and Accessories not meeting the
above warranty, or (ii) refund the purchase price paid by BT to ABI for the ABI MS or Accessories,
in each case if BT notifies ABI in writing of a claim for breach of the foregoing warranty
(“Warranty Claim”) within the Warranty Period. If BT makes a Warranty Claim within the Warranty
Period, then prior to exercising its election as provided for herein, ABI shall have the right to
request that BT return to ABI the allegedly defective ABI MS or part thereof at ABI’s cost, or ABI
may visit the end user customer site where the allegedly defective ABI MS or part thereof is
located, in order to verify the Warranty Claim. For clarity, all Warranty Claims shall be made by
BT to ABI on behalf of any BT customer. Any returns of ABI MS or Accessories hereunder shall be
made only with the prior written consent of ABI, and the issuance by ABI to BT of a valid return
authorization number for such ABI MS or Accessories. Upon obtaining a valid return authorization
number for such ABI MS or Accessories from ABI, BT shall have its customer return the ABI MS or
Accessories that is the subject of the valid return authorization number, to ABI in accordance with
ABI’s written instructions. The remedies set forth in this Section 6.1 shall be ABI’ s sole and
exclusive liabilities, and BT’s and its customers’ sole and exclusive remedies, with respect to any
defects or non-performance of any ABI MS.

     6.2 In addition to any exclusions, conditions, exceptions, or limitations set forth in Section
6.1 above, ABI’s warranty does not and shall not cover, and ABI has no obligation to replace or
refund the purchase price of, any ABI MS or part thereof which is damaged by BT or any third party
(including any BT customer or other end user thereof) or is serviced, maintained or repaired by any
person or entity other than ABI or its designee, nor shall ABI’s warranty cover, and ABI has no
obligation to replace or refund the purchase price of any ABI MS or part thereof, if there is a
defect or failure or other performance or non-performance related issue that arises out of or is
caused by the operation, handling, storage or use of the ABI MS (including any software associated
therewith) other than in accordance with ABI’s written instructions. Use of the ABI MS with the
Rapid Fire System in accordance with BT’s specifications shall not violate this warranty.

     6.3 BT acknowledges and agrees that (i) any Warranty Claims made by BT following the end of
the Warranty Period are hereby forfeited and ABI shall have no responsibility or liability with
respect thereto, and (ii) the Warranty provided for in Section 6.1 is limited to BT and its
customers and is not assignable or transferable. ABI agrees that all warranties hereunder shall
survive the termination of this Agreement.

     6.4 THE WARRANTY SET FORTH IN SECTION 6.1 IS THE SOLE AND EXCLUSIVE WARRANTY WITH RESPECT TO
ABI MS, AND IS IN LIEU OF ALL OTHER WARRANTIES, EXPRESSED OR IMPLIED, ALL OF WHICH OTHER

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

8

 

WARRANTIES ARE EXPRESSLY DISCLAIMED, INCLUDING WITHOUT LIMITATION THOSE OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT, OR REGARDING RESULTS OBTAINED THROUGH THE
USE OF ANY ABI MS (INCLUDING WITHOUT LIMITATION, ANY CLAIM OF INACCURATE, INVALID OR INCOMPLETE
RESULTS) WHETHER ARISING FROM A STATUTE OR OTHERWISE IN LAW OR FROM A COURSE OF PERFORMANCE,
DEALING OR USAGE OF TRADE . ABI MAKES NO WARRANTIES OR REPRESENTATIONS WHATSOEVER WITH RESPECT TO
THE ACCESSORIES OR ABI SERVICES, ALL OF WHICH ARE EXPRESSLY DISCLAIMED, INCLUDING WITHOUT
LIMITATION THOSE OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NON-INFRINGEMENT, WHETHER
ARISING FROM A STATUTE OR OTHERWISE IN LAW OR FROM A COURSE OF PERFORMANCE, DEALING OR USAGE OF
TRADE.

     6.5 IN NO EVENT SHALL ABI BE LIABLE, WHETHER IN CONTRACT OR TORT OR OTHERWISE, FOR INDIRECT,
INCIDENTAL, SPECIAL EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES, WHETHER OR NOT ABI KNOWS, SHOULD
HAVE KNOWN OR IS OTHERWISE ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, INCLUDING WITHOUT
LIMITATION, DAMAGES ARISING FROM OR RELATED TO LOSS OF USE, LOSS OF DATA, DOWNTIME, PROCUREMENT OF
SUBSTITUTE GOODS OR SERVICES, OR FOR LOSS OF REVENUE, PROFITS, INCOME, GOODWILL, OR BUSINESS OR
OTHER FINANCIAL LOSS.

     6.6 If BT makes any warranty or representation that is inconsistent with or in addition to the
warranty provided for in Section 6.1, BT shall defend, indemnify and hold ABI and its Affiliates
and their respective directors, officers, agents and employees from and against any claim based
thereon, including without limitation the payment of any reasonable attorneys fees and costs of
litigation regardless of outcome.

7. TERM AND TERMINATION

     7.1 This Agreement
shall have an Initial Term of one (1) year from the Effective Date and
shall be renewed automatically for subsequent twelve (12) month terms (“Terms”) unless written
notice of termination provided by one party or the other no less than ninety (90) days prior to the
end of the then current term.

     7.2 Notwithstanding anything herein contained to the contrary, and in addition and without
prejudice to any other rights or remedies in equity or at law, a party shall have the right to
terminate this Agreement on written notice to the other party as follows:

          (a) if, during the Initial Term or any Term thereafter, one party is in material breach of any
of the terms hereof and does not cure such breach within thirty (30) days after receiving notice
thereof from the non-breaching party specifying the breach (in the case of non-payment, such breach
is not required to be material and must be cured within ten (10) days);

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

9

 

provided, however, that the foregoing provisions permitting a cure within thirty (30) days
shall not apply to any breach of Section 10 of this Agreement; or

          (b) either party may terminate this Agreement effective immediately upon written notice if (i)
all or a substantial portion of the assets of the other party are transferred to an assignee for
the benefit of creditors, a receiver, or a trustee in bankruptcy, (ii) a proceeding is commenced by
or against the other party for relief under bankruptcy or similar laws and such proceeding is not
dismissed within thirty (30) days, (iii) the other party is adjudged insolvent or bankrupt; or (iv)
if the other party shall cease to carry on business.

     7.3 Either party may terminate this Agreement for convenience effective upon ninety (90) days
prior written notification to the other party, after the end of the Initial Term.

     7.4 No termination of this Agreement shall in any way affect BT’s obligations to pay any
amounts accrued prior to such termination of this Agreement, or any of BT’s other liabilities
accrued up to the date of such termination.

     7.5 The following shall survive any expiration or termination of this Agreement: (a) any
provision intended to survive or plainly indicating that it should survive; (b) any benefits or
rights that have accrued prior to or on account of such termination; and (c) Sections 1, 2.2, 5,
6,,7, 8, 10 and 11.

     7.6 Notwithstanding anything to the contrary contained in this Agreement, it is expressly
agreed that the expiration or termination of this Agreement for any reason shall not terminate or
diminish in any way the obligations under ABI Services contracts covering ABI MS purchased prior to
the date of termination or expiration of this Agreement and ABI shall continue to service those
agreements.

     7.7 On any termination or expiration of this Agreement: (i) all rights granted hereunder shall
automatically terminate and revert in their entirety to ABI, and (ii) the receiving Party shall
promptly return to the disclosing Party or destroy (at the disclosing Party’s election) any and all
Confidential Information and any copies or embodiments thereof, in whatever form including
electronic form, except that a receiving Party may retain one (1) copy of the disclosing Party’s
Confidential Information in its legal files for the sole purpose of meeting its ongoing obligations
hereunder.

8. INDEMNIFICATION AND INSURANCE

     8.1 BT shall defend, indemnify and hold harmless ABI, and its Affiliates and their respective
officers, directors, employees, agents, successors and assigns, from and against any and all third
party liabilities, suits, claims, losses, damages, settlements, awards or judgments, and shall pay
all costs and expenses thereof (including without limitation reasonable attorney’s fees and costs
of litigation, regardless of outcome) (collectively, “Liabilities”) up to the total dollar amount
received by BioTrove for the sale of the complete RapidFire, ABI MS, and ABI

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

10

 

Accessories system giving rise to such Liabilities, to the extent resulting from (i) any
negligence, misconduct, violation of law or regulation or breach of this Agreement by BT or its
employees, agents or contractors, (ii) the manufacture, use or sale of the RapidFire System,
whether alone or in conjunction with any ABI MS, or (iii) the use of any ABI MS in conjunction with
the RapidFire System, except to the extent such Liabilities are caused by the negligence,
misconduct, violation of law or regulation or breach of this Agreement by ABI or its employees,
agents or contractors.

     8.2 During the Term, BT shall at its cost and expense, maintain in full force and effect, a
policy or policies of insurance commensurate with industry standards for services substantially
similar to the services performed hereunder, including maintaining insurance coverage in types and
amounts sufficient to cover its obligations under this Agreement including under this Section 8.
Such policies shall name ABI as an additional insured and BT shall promptly notify ABI in the event
of any cancellation or material change in coverage. BT shall provide ABI with certificates of
insurance on request.

     8.3 ABI shall defend, indemnify and hold harmless BT, and its Affiliates and their respective
officers, directors, employees, agents, successors and assigns, from and against any and all third
party liabilities, suits, claims, losses, damages, settlements, awards or judgments, and shall pay
all costs and expenses thereof (including without limitation reasonable attorney’s fees and costs
of litigation, regardless of outcome) (collectively, “Liabilities”) up to the total dollar amount
received by ABI for the sale of the ABI MS and/or ABI Accessories giving rise to such Liabilities,
to the extent resulting from (i) any negligence, misconduct, violation of law or regulation or
breach of this Agreement by ABI or its employees, agents or contractors, or (ii) the manufacture,
use or sale of the ABI MS, Accessories or any ABI Services , except to the extent such Liabilities
are caused by the negligence, misconduct, violation of law or regulation or breach of this
Agreement by BT or its customers or their respective employees, agents or contractors.

     8.4 Each party’s obligations under Sections 8.1 and 8.3, respectively, shall be conditioned
upon the following: the party seeking indemnification (the “Indemnitee”) shall give the other party
(the “Indemnitor”) prompt written notice of the claim; the Indemnitee shall fully cooperate as
requested by the Indemnitor in the defense against or settlement of the claim; the Indemnitor shall
have the sole control over and right to defend, settle or otherwise dispose of the claim on such
terms as the Indemnitor, in its sole discretion, shall deem appropriate; and the Indemnitee shall
not enter into or agree to any settlement, judgment or award, or to any other disposition of the
claim, without the prior written consent of the Indemnitor.

9. TRADEMARKS AND TRADE NAMES

     9.1 ABI MS will be resold with no changes to its existing ABI Marks (defined below). BT’s
RapidFire System components will carry marks, labels and branding of BT.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

11

 

     9.2 Subject to Section 9.3, ABI grants to BT a non-exclusive right in the Field and in the
Territory to use the trademarks, trade names and logos that ABI may adopt from time to time with
respect to the ABI MS (“ABI Marks”) in connection with BT’s marketing, promotion and resale of ABI
MS with the RapidFire System as provided for under this Agreement. BT will indicate clearly in any
and all materials in which the ABI MS are advertised, marketed, resold or otherwise promoted that
such RapidFire System contains mass spectrometer instrumentation developed by ABI and is sold by BT
with ABI’s permission. Except as expressly set forth in this Section 9, nothing contained in this
Agreement will grant to BT any right, title or interest in ABI Marks. BT recognizes the validity
of ABI Marks and acknowledges the same are the sole and exclusive property of ABI. At no time
during or after the Term will BT challenge or assist others to challenge ABI Marks or the
registration thereof or attempt or assist others to attempt to register any trademarks, marks,
trade names or logos confusingly similar to those of ABI.

     9.3 All representations of ABI Marks that BT intends to use will first be submitted to one of
the ABI Principal Contacts listed in Exhibit E attached hereto and made a part hereof (which
Principal Contacts may be modified by ABI at any time on written notice to BT) for prior written
approval (which will not be unreasonably withheld) of design, color and other details or will be
exact copies of those used by ABI. In addition, BT shall follow the instructions issued by ABI
from time to time for the purpose of protecting the standards of quality established for the goods
and services sold under ABI Marks. In addition to the foregoing, during the Term, at ABI’s
request, BT shall provide ABI with access to copies of all materials in which the ABI Marks are
used, to verify BT is in compliance with its obligations under this Section 9.

     9.4 BT acknowledges and agrees that the use of ABI Marks as set forth in Section 9.1, and any
review or approval by ABI as set forth in Section 9.3 do not represent the endorsement or approval
by ABI of BT’s marketing, promotion, resale or use of ABI MS or ABI Services, in any form.

10. CONFIDENTIALITY AND PUBLIC ANNOUNCEMENTS

     10.1 For the purposes of this Agreement, confidential information of a Party means by way of
example but not limitation: trade secrets, proprietary information, inventions, know-how, technical
information, data, databases, designs, specifications, protocols, manufacturing methods, software,
algorithms, customer lists, business or financial information, or other non-public information,
whether or not any of the foregoing is patentable or copyrightable and whether in written, visual,
oral, electronic or any other form including, without limitation, models, prototypes, tools,
drawings, samples or other material, which is marked as such (“Confidential Information”).
Confidential Information also includes the existence and terms and conditions of this Agreement.
The parties agree that, for the Term of this Agreement and for five (5) years thereafter, each
Party, including contractors, agents and representatives, receiving hereunder any Confidential
Information (thus becoming the receiving Party) of the other Party (thus becoming the disclosing
Party) shall keep such Confidential Information confidential and shall not publish or otherwise
disclose to any third party or use such Confidential Information for any purpose other than as
provided for in this Agreement. Any such Confidential Information

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

12

 

shall be identified at the time of disclosure and, if provided in written form, shall bear an
appropriate legend and, if disclosed orally, shall be submitted in writing to the receiving Party
within thirty (30) days after the oral disclosure. Confidential Information of a disclosing Party
and copies and derivations thereof are and shall be solely owned by the disclosing Party. No
obligation shall be imposed with respect to any information designated “Confidential Information”
that the receiving Party can establish:

          (a) was already known to the receiving party or its Affiliates (other than under an obligation
of confidentiality), at the time of disclosure by the disclosing party and such receiving party has
documentary evidence to that effect;

          (b) was generally available to the public or otherwise part of the public domain at the time
of its disclosure to the receiving party;

          (c) became generally available to the public or otherwise part of the public domain after its
disclosure or development, as the case may be, and other than through any act or omission of a
party in breach of this confidentiality obligation;

          (d) was disclosed to the receiving party or its Affiliates, other than under an obligation of
confidentiality, by a third party who had no obligation to the disclosing party not to disclose
such information to others; or

          (e) is developed by the receiving Party or its Affiliates independently of the disclosure by
the disclosing Party, and such receiving Party has documentary evidence to that effect.

     10.2 Authorized Disclosure and Use.

          (a) Notwithstanding the foregoing Section 10.1, each Party may disclose Confidential
Information belonging to the other Party to the extent such disclosure is reasonably necessary to:

               (i) prosecute or defend litigation, or

               (ii) comply with applicable governmental laws and regulations; provided, however, that in each
case, prior to making such disclosure, the Party that is required to make such disclosure notifies
the other Party of its intended disclosure and use reasonable efforts consistent with such legal
requirements to allow the other Party to take whatever appropriate measures may be taken to
maintain the confidentiality of the Confidential Information including requesting confidential
treatment thereof or a protective order therefor.

          (b) Notwithstanding the foregoing Section 10.2(a), (i) each party shall have the right to use
the other party’s Confidential Information solely for the purpose of carrying out the receiving
party’s responsibilities under this Agreement, and (ii) the receiving Party shall not

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

13

 

use any Confidential Information of the disclosing Party in applying for or securing any
intellectual property rights including patents.

     10.3 Regulatory Filings. Either party may disclose the terms of this Agreement to the
extent required or deemed necessary, in the reasonable opinion of such Party’s legal counsel, to
comply with applicable laws, including without limitation the rules and regulations promulgated by
the United States Securities and Exchange Commission and any exchange or listing requirements.
Notwithstanding the foregoing, before disclosing this Agreement or any of the terms hereof pursuant
to this Section 10.3, the Parties will consult with one another on the terms of this Agreement to
be redacted in making any such disclosure. If a Party discloses this Agreement or any of the terms
hereof in accordance with this Section 10.3, such party agrees, at its own expense, to seek
confidential treatment of portions of this Agreement or such terms, as may be reasonably requested
by the other Party.

     10.4 Public Announcements. Except as otherwise expressly and specifically set forth
in this Agreement, neither Party shall make any press release or other public announcement
concerning any aspect of this Agreement, or make any use of the name of the other Party in
connection with or in consequence of this Agreement, without the prior written consent of the other
Party. In the event such announcement is required or deemed necessary by a Party under applicable
laws or regulations, the Party making such announcement shall use reasonable efforts to notify the
other Party prior to such disclosure.

11. MISCELLANEOUS

     11.1 Notices. All notice, requests, demands and other communications hereunder shall
be in English and shall be given in writing and shall be: (a) personally delivered; (b) sent by
facsimile transmission or other electronic means of transmitting written documents with
confirmation of receipt; or (c) sent to the Parties at their respective addresses indicated herein
by registered or certified mail, return receipt requested and postage prepaid, or by private
overnight mail courier services with confirmation of receipt. The respective addresses to be used
for all such notices, demands or requests are as follows:

     If to BT:

BioTrove, Inc,

12 Gill St., Suite 4000

Woburn, MA 01801

Attn: Legal Department

Phone No.: (781) 721 3600

Fax No.: (781) 721 3601

     If to Applied Biosystems:

Applera Corporation

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

14

 

Applied Biosystems Group

850 Lincoln Centre Drive

Foster City, CA 94404

Attn: Legal Department

Phone No.: (650) 638-5846

Fax No.: (650) 638-6677

If personally delivered, such communication shall be deemed delivered upon actual receipt by the
“attention” addressee or a person authorized to accept for such addressee; if transmitted by
facsimile pursuant to this paragraph, such communication shall be deemed delivered the next
business day after transmission, provided that sender has a transmission confirmation sheet
indicating successful receipt at the receiving facsimile machine; if sent by overnight courier
pursuant to this paragraph, such communication shall be deemed delivered upon receipt by the
“attention” addressee or a person authorized to accept for such addressee; and if sent by mail
pursuant to this Section 11.1, such communication shall be deemed delivered as of the date of
delivery indicated on the receipt issued by the relevant postal service, or, if the addressee fails
or refuses to accept delivery, as of the date of such failure or refusal. Any Party to this
Agreement may change its address for the purposes of this Agreement by giving notice thereof in
accordance with this Section 11.1.

     11.2 Entire Agreement. This Agreement and the Exhibits hereto sets forth the complete
agreement of the Parties concerning the subject matter hereof and supersedes all prior agreements,
understandings, promises and representations with respect to such subject matter, including without
limitation, the Term Sheet for Resellers Agreement for ABI Mass Spectrometers and Service between
the Parties. No claimed oral agreement in respect thereto shall be considered as any part hereof.
No amendment or change in any of the terms hereof subsequent to the execution hereof shall have any
force or effect unless agreed to in writing by duly authorized representatives of the Parties.

     11.3 Waiver. No waiver of any provision, of this Agreement shall be effective unless
in writing. No waiver shall be deemed to be, or shall constitute, a waiver of a breach of any
other provision of this Agreement, whether or not similar, nor shall such waiver constitute a
continuing waiver of such breach unless otherwise expressly provided in such waiver.

     11.4 Severability. Each provision contained in this Agreement is declared to
constitute a separate and distinct covenant and provision and to be severable from all other
separate, distinct covenants and provisions. It is agreed that should any clause, condition or
term, or any part thereof, contained in this Agreement be unenforceable or prohibited by law or by
any present or future legislation then: (a) such clause, condition, term or part thereof, shall be
amended, and is hereby amended, so as to be in compliance therewith the legislation or law; but (b)
if such clause, condition or term, or part thereof, cannot be amended so as to be in compliance
with the legislation or law, then such clause, condition, term or part thereof shall be severed
from this Agreement all the rest of the clauses, terms and conditions or parts thereof contained in
this Agreement shall remain unimpaired.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

15

 

     11.5 Construction. The headings in this Agreement are inserted for convenience only
and shall not constitute a part hereof or affect the interpretation of the Agreement. This
Agreement shall not be construed against either Party. Except where the context otherwise
requires, wherever used, the singular shall include the plural and the word “or” is used in the
inclusive sense.

     11.6 Counterparts/Facsimiles. This Agreement may be executed (including via facsimile
or other reliable electronic means of transmitting signed copies) in two or more counterparts, each
of which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

     11.7 Governing Law. This Agreement and any dispute arising out of or in connection
herewith shall be governed by the laws of the state of California, regardless of its or any other
jurisdiction’s choice of law principles.

     11.8 Transferability. Except as provided below, neither party may assign, transfer or
delegate any of the rights or obligations under this Agreement or this Agreement, without the prior
written consent of the other party, except in the event of a merger, consolidation, reorganization
or transfer to an entity that has acquired all or substantially all of the assigning party’s assets
as successor to the business. In the event of the sale or transfer by ABI of all or substantially
all of its assets related to this Agreement to an Affiliate or to a third party, whether by sale,
merger, or change of control, ABI would have the right to assign any or all rights and obligations
contained herein and the Agreement to such Affiliate or third party without the consent of BT and
the Agreement shall be binding upon such acquirer and would remain in full force and effect, at
least until the expiration of the then current Term, unless earlier terminated by BT as provided
for in Section 7. In the event that all or substantially all of BT’s assets are acquired, whether
by sale, merger, or change of control, BT would have the right to assign any or all rights and
obligations contained herein and the Agreement to such Affiliate or third party without the consent
of ABI and the Agreement shall be binding upon such acquirer and would remain in full force and
effect, at least until the expiration of the then current Term, unless earlier terminated by ABI as
provided for in Section 7. Any permitted assignee of either Party shall succeed to all of the
rights and assume all of the obligations of BT or ABI, respectively, under this Agreement.
Notwithstanding the foregoing, if BT is acquired by a competitor to ABI in the mass spectrometer
instrumentation market, ABI reserves the right to terminate this Agreement immediately on written
notice to BT in such an event.

     11.9 Export Controls. This Agreement is subject in all respects to the laws and
regulations of the United States of America, including relevant export control laws or regulations.
Neither Party shall export, re-export, resell, ship, divert, or cause to be exported, re-exported,
resold, shipped, or diverted, directly or indirectly, to any country, person or entity for which
the United States Government or any agency thereof requires governmental approval without first
obtaining such license or approval.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

16

 

     11.10 Force Majeure. Neither Party shall lose any rights hereunder or be liable to
the other Party for damages or losses (except for payment obligations) on account of failure of
performance (other than in connection with payment) by the defaulting Party if the failure is
occasioned by war, strike, fire, Act of God, earthquake, flood, lockout, embargo, governmental acts
or orders or restrictions, failure of suppliers, or any other reason where failure to perform is
beyond the reasonable control and not caused by the negligence or intentional conduct or misconduct
of the nonperforming Party, and such Party has exerted all reasonable efforts to avoid or remedy
such force majeure; provided, however, that in no event shall a Party be required to settle any
labor dispute or disturbance.

     11.11 Further Undertakings. Each Party shall duly execute and deliver, or cause to be
duly executed and delivered, such further instruments and do and cause to be done such further acts
and things, including, without limitation, the filing of such assignments, agreements, documents
and instruments, as may be necessary or as the other Party may reasonably request in connection
with this Agreement or to carry out more effectively the provisions and purposes hereof, or to
better assure and confirm unto such other Party its rights and remedies under this Agreement.

     11.12 Conflicts. If there is a conflict between this Agreement and any Exhibit
hereto, the terms and conditions of this Agreement shall apply.

     IN WITNESS WHEREOF, the undersigned have executed and delivered this Agreement by their duly
authorized representatives as of the Effective Date.

	 	 	 	 	 	 	 	 	 
	APPLERA CORPORATION, acting 

through its Applied Biosystems Group	 	BIOTROVE	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Laura Lauman 	 	By:
	 	/s/ Can Ozbal 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Name:

	 	Laura Lauman 	 	Name:	 	Can Ozbal 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Title:

	 	President, PDM dir. 	 	Title:	 	VP & GM, Rapid Fire 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	6/1/08 	 	Date:	 	6/1//08 	 	 
	 

	 	 
	 	 	 	 	 	 

Approved for Signature

By: KAS

Kent A. Stormer

Date: 6-1-08

Applied Biosystems Legal Department

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

17

 

EXHIBIT A

ABI MS and ABI Service Product and Price List

	 	 	 	 	 	 	 
	 	 	(U.S. Dollars)	 
	API 4000 LC/MS/MS System	 	 	 
	 
	 	 
	WC026992	 	API 4000 LC/MS/MS System, Complete Install Package (for Small Molecule
	 	 	395,000	 
	 	 	Applications) Enhanced high performance triple quadrupole mass spectrometer
system with a mass range of m/z 5 to 3000.
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	Tuition for one person for an Operator Training Class at an Applied Biosystems
facility (does not include travel and living expenses). This training session
is valid for one year from installation and is not transferable.
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	Standard parts and labour warranty for one year starting from the completion
of instrument commissioning. One no-charge Preventative Maintenance (PM)
during the one-year warranty period.
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	Turbo V Source that accepts either the TurboIonSpray Probe or APCI Probe
(1025134)
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	TurboIonSpray Probe (P/N WCO27461)
	 	 	 	 
	 	 	Heated IonSpray probe for use in the Turbo V Source. Accepts flow rates from
5 to 3000 μl/min without splitting. Ideal for quantitation at high
sensitivity and high flow rates.
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	APCI Probe (P/N WCO27460)
	 	 	 	 
	 	 	Atmospheric Pressure Chemical Ionization probe for use in the Turbo V Source.
Useful for ionization of small polar and neutral molecules. Accepts flow
rates from 50 to 3000 μl/min.
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	Analyst 1.5 Software Kit with 2 Licenses (P/N 1032729)
	 	 	 	 
	 	 	Core software for control, data acquisition, and data processing on AB/SCIEX
QqQ and QTRAP® mass spectrometers. Includes 2 licenses: 1 license
for the instrument workstation and 1 processing-only license for an extra
non-instrument PC. Compatible with Windows XP or 2000.
	 	 	 	 

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

18

 

	 	 	 	 	 	 	 
	 	 	(U.S. Dollars)	 
	Includes:	 	T3400 QQQ/Traps with GPIB (P/N 1030762)
	 	 	 	 
	 	 	Dell Precision T3400 Dual Core computer, 2.66GHz processor, 2 GB RAM, 2x320GB
hard drives with RAID 1 configuration, DVD RW (CD RW capable), mouse and
keyboard. The internal video card supports a maximum resolution of 1920x1200
(DVI) and 2048 x 1536 (Analog). The computer is imaged with Windows XP
Professional (licensed with Vista Business), includes drivers for GPIB, ADC,
Digi and Edgeport USB to Serial Expansion box. A PCI GPIB communications
card, used to interface Data Acquisition Workstation with the instrument, is
pre-installed. The Edgeport USB to Serial Expansion Box which is external to
the computer is a component within the Instrument system package, and not
included with this PC. This computer and card are RoHS compliant.
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	Dell 19” LCD Monitor (P/N 1011572)
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	Edgeport USB to Serial Expansion Kit (P/N 1008592)
Required to control more than 2 peripheral devices (i.e. pumps and
autosamplers). Includes Edgeport converter box with 8 port connections, and 1
meter USB cable. Not recommended for use with Windows NT O/S. Requires the
purchase of appropriate peripheral cables.
	 	 	 	 
	 	 	 
	 	 	 	 
	1029120	 	Line Transformer
	 	 	1,000	 
	 	 	One required in areas where line voltage is out of specification (208- 240VAC).
	 	 	 	 
	 	 	 
	 	 	 	 
	API 5000 LC/MS/MS System	 	 	 	 
	 	 	 
	 	 	 	 
	4363754	 	API 5000
LC/MS/MS System, Complete Install Package (for Small Molecule Applications)
	 	 	450,000	 
	 	 	Enhanced high performance triple quadrupole mass spectrometer system with a
mass range of m/z 5 to 1250. Requires minimum of Analyst 1.4.1 Software.
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	Tuition for one person for an Operator Training Class at an Applied Biosystems
facility (does not include travel and living expenses). This training session
is valid for one year from installation and is not transferable.
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	Standard parts and labour warranty for one year starting from the completion
of instrument commissioning. One no-charge Preventative Maintenance (PM)
during the one-year warranty period.
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	Turbo V Source that accepts either the TurboIonSpray Probe or APCI Probe
(1025134)
	 	 	 	 

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

19

 

	 	 	 	 	 	 	 
	 	 	(U.S. Dollars)	 
	Includes:	 	TurboIonSpray Probe (WCO27461)
	 	 	 	 
	 	 	Heated IonSpray probe for use in the Turbo V Source. Accepts flow rates from
5 to 3000 μl/min without splitting. Ideal for quantitation at high
sensitivity and high flow rates.
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	APCI Probe (WCO27460)
	 	 	 	 
	 	 	Atmospheric Pressure Chemical Ionization probe for use in the Turbo V Source.
Useful for ionization of small polar and neutral molecules. Accepts flow
rates from 50 to 3000 μl/min.
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	Analyst 1.5 Software Kit with 2 Licenses (P/N 1032729)
	 	 	 	 
	 	 	Core software for control, data acquisition, and data processing on AB/SCIEX
QqQ and QTRAP® mass spectrometers. Includes 2 licenses: 1 license for the
instrument workstation and 1 processing-only license for an extra
non-instrument PC. Compatible with Windows XP or 2000.
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	T3400 QQQ/Traps with GPIB (P/N 1030762)
	 	 	 	 
	 	 	Dell Precision T3400 Dual Core computer, 2.66GHz processor, 2 GB RAM, 2x320GB
hard drives with RAID 1 configuration, DVD RW (CD RW capable), mouse and
keyboard. The internal video card supports a maximum resolution of 1920x1200
(DVI) and 2048 x 1536 (Analog). The computer is imaged with Windows XP
Professional (licensed with Vista Business), includes drivers for GPIB, ADC,
Digi and Edgeport USB to Serial Expansion box. A PCI GPIB communications
card, used to interface Data Acquisition Workstation with the instrument, is
pre-installed. The Edgeport USB to Serial Expansion Box which is external to
the computer is a component within the Instrument system package, and not
included with this PC. This computer and card are RoHS compliant.
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	Dell 19” LCD Monitor (1011572)
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	Edgeport USB to Serial Expansion Kit (1008592)
	 	 	1,000	 
	 	 	Required to control more than 2 peripheral devices (i.e. pumps and
autosamplers). Includes Edgeport converter box with 8 port connections, and 1
meter USB cable. Not recommended for use with Windows NT 0/S. Requires the
purchase of appropriate peripheral cables.
	 	 	 	 
	 	 	 
	 	 	 	 
	1029120	 	Line Transformer
	 	 	 	 
	 	 	Two required in areas where line voltage is out of specification (208- 240VAC).
	 	 	 	 
	 	 	 
	 	 	 	 
	4000 QTRAP LC/MS/MS System	 	 	 	 

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

20

 

	 	 	 	 	 	 	 
	 	 	(U.S. Dollars)	 
	4345261	 	4000 QTRAP System, Complete Install Package (appropriate for small molecule applications)
Enhanced high performance hybrid triple quadrupole/linear ion trap
LC/MS/MS mass spectrometer with a mass range of m/z 5 to 2800.
	 	 	430,000	 
	 	 	 
	 	 	 	 
	Includes:	 	Tuition for one person for an Operator Training Class at an Applied Biosystems facility (does not include travel and living
expenses). This training session is valid for one year from installation and is not transferable.
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	Standard parts and labour warranty for one year starting from the completion of instrument commissioning. One no-charge
Preventative Maintenance (PM) during the one-year warranty period.
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	Turbo V Source that accepts either the TurboIonSpray Probe or APCI Probe (1025134)
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	TurboIonSpray Probe (WCO27461)
	 	 	 	 
	 	 	Heated IonSpray probe for use in the Turbo V Source. Accepts flow rates from 5 to 3000 μl/min without splitting. Ideal
for quantitation at high sensitivity and high flow rates.
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	APCI Probe (WCO27460)
	 	 	 	 
	 	 	Atmospheric Pressure Chemical Ionization probe for use in the Turbo V Source. Useful for ionization of small polar and
neutral molecules. Accepts flow rates from 50 to 3000 μl/min.
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	Analyst 1.5 Software Kit with 2 Licenses (P/N 1032729)
	 	 	 	 
	 	 	Core software for control, data acquisition, and data processing on AB/SCIEX QqQ and QTRAP® mass spectrometers. Includes 2
licenses: 1 license for the instrument workstation and 1 processing-only license for an extra non-instrument PC. Compatible
with Windows XP or 2000.
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	60-Day Demo CD for LightSightTM
Software (1030981)
	 	 	 	 
	 	 	60-day demo CD for LightSightTM Software. Includes demo software CD and the LightSightTM license key for a
single computer. For full description and requirements, see LightSightTM product description.
	 	 	 	 

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

21

 

	 	 	 	 	 	 	 
	 	 	(U.S. Dollars)	 
	Includes:	 	T3400 QQQ/Traps with GPIB (P/N 1030762)
	 	 	 	 
	 	 	Dell Precision T3400 Dual Core computer, 2.66GHz processor, 2 GB RAM, 2x320GB hard drives with RAID 1 configuration, DVD RW
(CD RW capable), mouse and keyboard. The internal video card supports a maximum resolution of 1920x1200 (DVI) and 2048 x
1536 (Analog). The computer is imaged with Windows XP Professional (licensed with Vista Business), includes drivers for
GPIB, ADC, Digi and Edgeport USB to Serial Expansion box. A PCI GPIB communications card, used to interface Data
Acquisition Workstation with the instrument, is pre-installed. The Edgeport USB to Serial Expansion Box which is external
to the computer is a component within the Instrument system package, and not included with this PC. This computer and card
are RoHS compliant.
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	Dell 19” LCD Monitor (1011572)
	 	 	 	 
	 	 	 
	 	 	 	 
	Includes:	 	Edgeport USB to Serial Expansion Kit (1008592)
	 	 	 	 
	 	 	Required to control more than 2 peripheral devices (i.e. pumps and autosamplers). Includes Edgeport converter box with 8
port connections, and 1 meter USB cable. Not recommended for use with Windows NT 0/S. Requires the purchase of appropriate
peripheral cables.
	 	 	 	 
	 	 	 
	 	 	 	 
	1029120	 	Line Transformer
	 	 	1,000	 
	 	 	One required in areas where line voltage is out of specification (208- 240VAC).
	 	 	 	 

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

22

 

ABI Services performed under its Service Plans

1. BIOASSURANCE PERFORMANCE PLAN

Inclusions:

A. Parts, labor and travel for remedial repair

B. One (1) Planned Maintenance visit for routine maintenance each year designated by Applied
Biosystems for the instrument covered by the Plan.

C. Telephone access to technical support.

D. Priority repair service response time.

E. Access to AB Smart Services remote instrument monitoring

2. PRICE LIST (North America)

A. Price List:

	 	 	 	 	 	 	 	 	 
	AB Instrument	 	Plan Type	 	US List
	API 4000
	 	AB Assurance	 	$	36,960	 
	API 4000 QTRAP
	 	AB Assurance	 	$	38,000	 
	API 5000
	 	AB Assurance	 	 	39,398	 

B. Prices effective as of January 1, 2008.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

23

 

EXHIBIT B

APPLIED BIOSYSTEMS GENERAL TERMS AND CONDITIONS OF SALE

These General Terms and Conditions of Sale (“Terms”) shall govern all orders for and purchases of
all products (“Product(s)”) that have been originally sold by Applied Biosystems (“ AB”) to
BioTrove, Inc. (“BT”), and that have been resold by to BT to its customers (“Buyer(s)”), including
installation of equipment, unless other terms are specifically designated in writing by AB to apply
to a specific Product, or AB and Buyer have entered into a master purchase agreement or other
written agreement that expressly provides that its terms supersede and replace these Terms with
respect to the products or services covered by the master purchase or other agreement (See Section
9, SOLE TERMS, INCONSISTENCIES, ORDER OF PRECEDENCE).

	 	1.	 	ACCEPTANCE OF ORDERS, DELIVERY, INSTALLATION. Upon AB’s acceptance of a BT
purchase order, AB will use reasonable efforts to ship tangible Product, including
equipment installation if agreed to by AB, subject to the purchase order within a
reasonable time after ordered. If AB has undertaken to install a Product, it is
Buyer’s responsibility, at Buyer’s cost, to have the installation site prepared and
available for installation free of hazardous or unsafe conditions and, unless AB
otherwise agrees, to move the Product, uncrated, from the Buyer’s delivery dock or
receiving location to the table top or other place of installation. Buyer shall not
assign AB personnel to work in biosafety level 3 or level 4 laboratories without prior
written notice to AB and obtaining AB’s prior written consent.
	 
	 	2.	 	CANCELLATION AND DEFERRAL. BUYER MAY NOT CANCEL ANY PURCHASE ORDER. However,
Buyer may defer the shipment date one time for up to sixty (60) days for instruments
and other hardware, by giving written notice to AB at least thirty (30) days before the
scheduled shipment date for instruments and other hardware.
	 
	 	3.	 	REJECTION AND RETURN OF GOODS. Any claims for damaged, missing or defective
Product must be reported in writing by Buyer to BT within fifteen (15) days from the
date of Buyer’s receipt of the Product. In addition, in order for Buyer to return
damaged or defective Product, Buyer must obtain a valid return authorization number
from AB and, upon obtaining such valid return authorization number, Buyer shall
promptly return a rejected Product to AB in accordance with AB’s written instructions.
Any returned Product shall be unused and in a condition no worse than that delivered to
Buyer and in the Product’s original containers and packing material, accompanied by a
valid return authorization number obtained from AB. For any valid claim timely made,
AB, at its option, may repair the Product (or part thereof) or replace the Product (or
part thereof) with an identical or substantially similar Product (or part thereof).
Shipping charges will not be credited. THESE ARE BUYER’S SOLE AND EXCLUSIVE REMEDIES
FOR DAMAGED OR MISSING OR DEFECTIVE

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

24

 

	 		 	PRODUCT. AB may require that Buyer sign and deliver a properly completed
certificate of decontamination prior to returning any Product.
	 
	 	4.	 	LIMITED WARRANTY. AB warrants that the Product, in the form it is sold to
Buyer hereunder, will upon delivery to the common carrier at the dock of AB or its
manufacturer or other designee, be free of defects in materials and workmanship for a
period of one (1) year from the date of such delivery (the “Warranty Period”). Buyer
shall notify BT in writing of a claim for breach of the foregoing warranty (`Warranty
Claim”) within the Warranty Period. If Buyer makes a Warranty Claim within the
Warranty Period, AB shall have the right to request that Buyer return to AB the
allegedly defective Product or part thereof, AB may visit Buyer’s site where the
allegedly defective Product or part thereof is located, or AB may require Buyer to
provide AB with documentation, in each case in order to verify the Warranty Claim. For
clarity, all Warranty Claims shall be made by Buyer to BT and not to AB within the
Warranty Period. Buyer acknowledges and agrees that (i) any Warranty Claims made by
Buyer following the end of the Warranty Period are hereby forfeited and AB shall have
no responsibility or liability with respect thereto, and (ii) the Warranty provided for
in this Paragraph 4 is limited to Buyer and is not assignable or transferable. Buyer’s
sole and exclusive remedies with respect to Product not meeting the foregoing warranty
are as set forth in Paragraph 3 above. AB’s warranty does not and shall not cover, and
AB has no obligation to replace or repair Product (or part thereof), which is damaged
by BT, Buyer or any other party or is serviced, maintained or repaired by any person or
entity other than AB or its designee, nor shall AB’s warranty cover, and AB has no
obligation to replace or repair any Product (or part thereof), if there is a defect or
failure or other performance or non-performance related issue that arises out of or is
caused by the operation, handling, storage or use of the Product (including any
software associated therewith) other than in accordance with AB’s written instructions.
Any written description of a Product is for the sole purpose of identifying Product,
and any such description is not part of any contract between AB and Buyer and does not
constitute a warranty that Product shall conform to that description. No affirmation
of fact or promise made by AB or BT shall constitute a warranty that Product will
conform to the affirmation or promise. Unless otherwise specified in writing in
documentation shipped with Product or otherwise agreed by AB in writing, AB does not
provide service or support for custom products or other products made to Buyers
specifications. THE WARRANTY IDENTIFIED IN THE FIRST SENTENCE OF THIS PARAGRAPH ARE
AB’S SOLE AND EXCLUSIVE WARRANTIES WITH RESPECT TO PRODUCT AND ARE IN LIEU OF ALL OTHER
WARRANTIES, STATUTORY, EXPRESS OR IMPLIED, ALL OF WHICH OTHER WARRANTIES ARE EXPRESSLY
DISCLAIMED, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

25

 

	 	 	 	PURPOSE, NON-INFRINGEMENT, OR REGARDING RESULTS OBTAINED THROUGH THE USE OF ANY
PRODUCT (INCLUDING, WITHOUT LIMITATION, ANY CLAIM OF INACCURATE, INVALID OR
INCOMPLETE RESULTS), WHETHER ARISING FROM A STATUTE OR OTHERWISE IN LAW OR FROM A
COURSE OF PERFORMANCE, DEALING OR USAGE OF TRADE.
	 
	 	5.	 	INDEMNIFICATION BY BUYER FOR BUYER’S MODIFICATIONS OR SPECIFICATIONS. If Buyer
modifies any Product or furnishes AB with specifications or designs or requests for
specific labeling or branding, Buyer agrees to defend, indemnify and hold AB harmless
from and against all liabilities, losses, damages, costs, expenses and claims
(including without limitation attorney’s fees and costs or litigation regardless of
outcome) arising from or based upon Buyer’s modifications or AB’s manufacture and/or
sale of Product or other performance in compliance with such specifications or designs
or requests for labeling or branding.
	 
	 	6.	 	COMPLIANCE WITH LAWS, USE OF PRODUCT, VALIDATION. Without limiting the
generality of the paragraph above entitled “LIMITED WARRANTY,” unless otherwise
expressly stated in writing by AB, no claim or representation is made or intended (i)
as to any clinical use of any Product (whether diagnostic, prognostic, therapeutic,
blood banking or any other clinical use), (ii) that any Product has been cleared,
approved, registered or otherwise qualified (collectively, “Approval”) by AB with any
regulatory agency for use in any clinical procedure or for other use requiring
compliance with any federal, state, provincial, European or any other governmental
agency or regulatory body regulating diagnostic, therapeutic, blood or other clinical
products, medical devices or similar products (collectively, “Regulatory Laws”), (iii)
that any Product will satisfy the requirements of any governmental body or other
organization, including, but not limited to, the United States Food and Drug
Administration or the International Organization for Standardization, or (iv) that any
Product or its performance is suitable or has been validated for any specific use or
application. Product should not be used for any purpose that would require Approval
unless proper Approval is obtained, or, in the case of use in diagnostic laboratory
systems and then only to the extent permitted by law, the laboratory has validated its
complete system as required by the Clinical Laboratory Improvements Act of 1988, as
amended, in the United States or equivalents in other countries. Buyer agrees that if
it elects to use Product for a purpose that would subject Buyer, its customers or any
Product to the jurisdiction of Regulatory Laws or other applicable law, Buyer shall be
solely responsible for obtaining any required Approvals or other approvals and
otherwise ensuring that its use of any Product complies with such laws. Unless
otherwise expressly stated in writing, Products have not been tested by or for AB for
any particular use or purpose, or for safety or efficacy. Buyer agrees that it is
Buyer’s responsibility,

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

26

 

	 	 	 	and not AB’s, to validate the performance of Products for any specific use or
application and to ensure that Products meet applicable regulatory, certification,
validation or its other requirements, since the use and performance characteristics
of Products have not been validated by AB for any specific use or application,
except as may be otherwise expressly set forth by AB in writing. Product should be
used in strict accordance with applicable instructions, warnings and other
information in user manuals and other Product documentation.
	 
	 	7.	 	FORCE MAJEURE. AB shall not be liable for any delay or failure of performance,
including without limitation failure to deliver or failure to install, where such delay
or failure arises or results from any cause beyond AB’s reasonable control, including
but not limited to, flood, fire, explosion, natural catastrophe, military operations,
blockade, sabotage, revolution, riot, civil commotion, war or civil war, plant
breakdown, computer or other equipment failure, unusually severe weather, earthquake or
other act of God, power loss or reduction, strike, lock-out, boycott or other labor
disputes of any kind (whether relating to its own employees or others), embargo,
governmental regulation or an inability or delay in obtaining materials. In the event
of any such delay or failure of performance, AB shall have such additional time within
which to perform its obligations hereunder as may be reasonably necessary under the
circumstances; and AB shall also have the right, to the extent necessary in AB’s
reasonable judgment, to apportion Product then available for delivery fairly among its
various customers in such manner as AB may consider equitable.
	 
	 	8.	 	LIMITATION OF LIABILITY. TO THE FULLEST EXTENT ALLOWED BY LAW, IN NO EVENT
SHALL AB BE LIABLE, WHETHER IN CONTRACT, TORT, STRICT LIABILITY, NEGLIGENCE, WARRANTY,
OR UNDER ANY STATUTE OR ON ANY OTHER BASIS FOR ANY SPECIAL, INCIDENTAL, INDIRECT,
EXEMPLARY, PUNITIVE, MULTIPLE OR CONSEQUENTIAL DAMAGES SUSTAINED BY BUYER OR ANY OTHER
PERSON OR ENTITY ARISING OUT OF OR CAUSED BY PRODUCT, AB’S PERFORMANCE OR FAILURE TO
PERFORM ITS OBLIGATIONS RELATING TO THE PURCHASE OF PRODUCT OR PERFORMANCE OF ANY
SERVICES, AB’S BREACH OF THESE TERMS, THE POSSESSION OR USE OF ANY PRODUCT, OR THE
PERFORMANCE BY AB OF ANY SERVICES, WHETHER OR NOT FORESEEABLE AND WHETHER OR NOT AB IS
ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, INCLUDING WITHOUT LIMITATION DAMAGES
ARISING FROM OR RELATED TO LOSS OF USE, LOSS OF DATA, DOWNTIME, PROCUREMENT OF
SUBSTITUTE GOODS OR SERVICES, OR FOR LOSS OF REVENUE, PROFITS, GOODWILL, OR BUSINESS OR
OTHER FINANCIAL LOSS.
	 
	 	9.	 	SOLE TERMS; INCONSISTENCIES; ORDER OF PRECEDENCE. These Terms, together with
any applicable label license or patent statement or other

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

27

 

	 	 	 	written conditions of use, any other terms and conditions expressly agreed to in
writing by an authorized representative of AB (collectively, “AB’s, Terms”), and
Buyer’s statement on its purchase order (if accepted in writing by AB) of the name
or identity of the Product(s) purchased, quantity, delivery date, bill to and ship
to address and, if accurate, price (and only such information on Buyer’s purchase
order), constitute the complete, exclusive and entire agreement between AB and Buyer
with respect to purchases of Product (unless other terms and conditions are
expressly designated to be applicable by AB in writing), and AB’s offer to sell
Product is expressly limited to such terms. Such terms shall take precedence over
and supersede and replace all prior or contemporaneous understandings or agreements,
written or oral, and any of Buyer’s additional or different terms and conditions,
which are hereby rejected and shall be void. Buyer’s submission of a purchase order
or other instrument for or regarding the purchase of Product, shall be deemed
acceptance of and agreement to AB’s Terms to the exclusion of any other terms and
conditions appearing in or referenced in such purchase order (except the name or
identity of products purchased, quantity, delivery date, bill to and ship to address
and, if accurate, price) or other instrument, which are hereby deemed to be material
alterations and notice of objection to which is hereby given, notwithstanding
anything contained to the contrary in Buyer’s purchase order or other instrument or
elsewhere. Any acceptance by AB of any offer of Buyer is expressly conditioned on
Buyer’s assent to and acceptance of AB’s Terms to the extent they are additional or
different terms from those of Buyer’s offer. Except as otherwise provided in these
Terms, in the event of an inconsistency between these Terms and the terms appearing
in any other agreement signed by an authorized representative of AB, the terms
appearing in such other agreement shall supersede and take precedence over the
inconsistent provision(s) of these Terms, and all other provisions of these Terms
shall remain in full force and effect.
	 
	 	10.	 	NO IMPLIED RIGHTS. Nothing in these Terms shall be deemed or construed (i) as
a license or grant of any intellectual property rights, whether express, implied, by
estoppel or otherwise; (ii) to limit AB’s rights to enforce its patent or other
intellectual property rights, including, without limitation, as to use of any Product
beyond that granted under any patent or other intellectual property label license or
statement applicable to the Product; (iii) as granting Buyer any right to be supplied
with any Product or component thereof beyond those ordered by Buyer and supplied by AB
in accordance with these Terms; or (iv) as a license or grant of any right to buyer to
manufacture or to have manufactured any Product.
	 
	 	11.	 	CHOICE OF LAW. Any contract between AB and Buyer relating to Product,
including these Terms, and any disputes relating thereto, shall be governed by and
construed in accordance with the laws of the State of California, U.S.A., excluding
both its and any other jurisdiction’s choice of law provisions and the United Nations
Convention on Contracts for the International Sale of Goods.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

28

 

	 	12.	 	EXPORT CONTROLS. Buyer agrees that it will not export or transfer Product for
re-export in violation of any United States laws or the laws of any other jurisdiction,
or to any denied or prohibited person, entity, or embargoed country in violation of
such laws.
	 
	 	13.	 	ANALYST SOFTWARE LICENSE. Buyer understands and agrees that Product includes
AB’s proprietary Analyst software and, by signing these Terms, Buyer hereby agrees to
all of the terms and conditions of the Software License Agreement for Applied
Biosystems/MDS Sciex
Analyst®
[1.4] Software (the “Software License”), a copy of which
is attached hereto as Attachment 1 and made a part hereof. Among other things, Buyer
further agrees that the Software License is a limited license that is personal to
Buyer, and Buyer may not and shall not transfer, assign or sublicense the Software
License to any third party, even if such third party purchases Product, and any third
party purchaser would be required to obtain a separate Software License from AB.
	 
	 	14.	 	MISCELLANEOUS. No amendment of these Terms or modification thereof shall be
binding unless in writing and signed by a duly authorized representative of both AB and
Buyer. AB’s failure to exercise any rights hereunder shall not constitute or be deemed
a waiver or forfeiture of such rights or any other rights hereunder. Headings are
included herein for convenience of reference only and shall not constitute a part of
these Terms for any other purpose. If any provision of these Terms shall be held to be
invalid or unenforceable for any reason, such provisions shall, to the extent of such
invalidity or enforceability, be severed without in any way affecting the remainder of
such provision or any other provision thereof, all of which shall continue in full
force and effect.

	 	 	 	 	 	 	 	 	 
	ACCEPTED AND AGREED TO:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	APPLERA CORPORATION	 	[BUYER]	 	 
	 
	 	 	 	 	 	 	 	 
	THROUGH ITS
APPLIED BIOSYSTEMS GROUP	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:
	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Print
Name:

	 	 	 	Print
Name:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Title:

	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	Date:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

29

 

ATTACHMENT 1

SOFTWARE LICENSE AGREEMENT FOR

Applied Biosystems/MDS SCIEX

ANALYST® 1.4 Software

IMPORTANT: THIS IS AN AGREEMENT BETWEEN YOU AND APPLIED BIOSYSTEMS/MDS SCIEX INSTRUMENTS. PLEASE
READ IT CAREFULLY BEFORE INSTALLING THE SOFTWARE.

BY PROCEEDING WITH THE INSTALLATION, YOU AGREE TO BE LEGALLY BOUND BY THE TERMS OF THIS AGREEMENT.
IF YOU DO NOT ACCEPT THE TERMS OF THIS AGREEMENT, DO NOT SELECT ACCEPT OR PROCEED WITH THE
INSTALLATION. RETURN IT, ALONG WITH ALL OTHER ASSOCIATED ITEMS (INCLUDING SHIPPING CONTAINER AND
OTHER CONTENTS WHICH FORM PART OF THE PRODUCT) WITHIN TEN (10) DAYS TO APPLIED BIOSYSTEMS/MDS SCIEX

“Software” includes all Analyst software components and manuals, including version 1.4 and any
previous versions of Analyst Software. “Computer” refers to a computer system used for data
processing or data acquisition and may contain one or more CPU’s. Instrument refers to an Applied
Biosystems/MDS Sciex LC/MS or LC/MS/MS system.

	1.	 	AB/MDS SCIEX grants you a non-transferable and non-exclusive right to use the Software solely
in object code format and solely for your own internal business. The Software may be
installed on one or more Computers for the purposes of data acquisition or data processing,
according to the following conditions:

	 	a)	 	The Software may be installed on the Computer physically connected to and
controlling the Instrument for the purpose of data acquisition
	 
	 	b)	 	OR the software may be installed on one Computer for the purpose of processing
data
	 
	 	c)	 	OR the software may be installed on more than one Computer for the purposes of
making the Software available to occasional users for processing data. It is your
responsibility to ensure that the Software in use at processing stations concurrently
does not exceed the number of available licenses.
	 
	 	d)	 	OR the software may be distributed for use, i.e. “published”, in a network
environment using presentation server software. It is your responsibility to ensure
that the Software in use at processing stations concurrently does not exceed the number
of available licenses.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

30

 

	2.	 	A separate license is required for use of the Software on any additional Computer except on a
temporary basis during a malfunction of the Computer that renders the Software inoperable.
	 
	3.	 	You may make copies of the Software for back up purposes, for archive purposes, or for
internal distribution purposes, but no more than two such copies shall exist per license at
any one time and such copies shall be used only as permitted herein. You will maintain
records of the number and location of all such copies. All such copies shall prominently
include the Applied Biosystems/MDS SCIEX proprietary and copyright notice: “Copyright (c)
1999, 2000, 2001, 2002, 2003 by Applied Biosystems/MDS SCIEX Instruments. All Right Reserved.
This Software is proprietary to Applied Biosystems/ MDS SCIEX Instruments”, or other such
reasonable notice as Applied Biosystems/MDS SCIEX may specify.
	 
	4.	 	You shall not provide or otherwise make available the Software in any form to any third party
(except for your employees or agents directly concerned with your licensed use of the
Software). You must not assign this Agreement or transfer, lease, export or grant a
sublicense of the Software or the license contained herein to any other party except as and
when authorized to do so by Applied Biosystems/MDS SCIEX in writing. In addition, you must
not reverse engineer, decompile or disassemble the Software.
	 
	5.	 	You may modify the Software or merge the Software into other program material, but on
discontinuance of this license the Software will be completely removed from the modified
Software or other program material and dealt with as if permission to modify or merge had not
been granted. Any portion of the Software included in such modified Software or other program
material will continue to be subject to the terms of this agreement.
	 
	6.	 	The Software is the property of Applied Biosystems/MDS SCIEX and no title to or ownership of
the Software is transferred to you, and all copies of the Software are and shall be the
property of Applied Biosystems/MDS SCIEX.
	 
	7.	 	THE SOFTWARE IS PROVIDED “AS IS” WITHOUT WARRANTY OR CONDITION OF ANY KIND, INCLUDING BUT NOT
LIMITED TO THE IMPLIED WARRANTIES OR CONDITIONS OF MERCHANTABLE QUALITY AND FITNESS FOR A
PARTICULAR PURPOSE.
	 
	8.	 	IN NO EVENT SHALL APPLIED BIOSYSTEMS/MDS SCIEX BE LIABLE TO YOU OR ANY THIRD PARTY FOR LOSS
OF PROFITS, LOSS OF BUSINESS REVENUE, FAILURE TO REALIZE EXPECTED SAVINGS, OTHER SIMILAR
ECONOMIC LOSS OR FOR ANY INDIRECT, SPECIAL OR CONSEQUENTIAL DAMAGES EVEN IF ADVISED OF THE
POSSIBILITY THEREOF.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

31

 

	9.	 	This agreement shall remain in force until terminated as follows. You may terminate this
agreement upon one month prior written notice. Applied Biosystems/MDS SCIEX may immediately
terminate this agreement if you fail to comply with any of the terms and conditions hereof.
Upon termination you shall immediately return or destroy the Software and shall within one
month from such termination furnish to Applied Biosystems/MDS SCIEX a signed certificate
certifying that, through your best efforts and to the best of your knowledge, the original and
all copies of the Software have been returned or destroyed.
	 
	10.	 	For U.S. Government End Users. If the Software is being acquired on behalf of any unit or
agency of the United States Government (“Government”), the following provisions apply. The
Government agrees that:

	 	a)	 	if the Software is supplied to the Department of Defense (DoD), the Software is
classified as “Commercial Computer Software” and the Government is acquiring only
“restricted rights” in the Software and its documentation as that term is defined in
Clause 252.227-7013(c)(1) of the DFARS; and
	 
	 	b)	 	if the Software is supplied to any unit or agency of the Government other than
DoD, the Government’s rights in the Software and its documentation will be as defined
in Clause 52 227-19(c)(2) of the FAR or, in the case of NASA, in Clause 18-52.227-86(d)
of the NASA Supplement to the FAR.

	11.	 	This License Agreement shall be governed by the laws of the Province of Ontario, Canada.
	 
	12.	 	If and to the extent that any court of competent jurisdiction holds any part of this
Agreement to be invalid or unenforceable, such holding shall in no way affect the validity of
the remainder of this Agreement.

D1000036793 1/2

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

32

 

EXHIBIT C

APPLIED BIOSYSTEMS PERFORMANCE AGREEMENT TERMS AND CONDITIONS

	 	1.	 	These Performance Agreement Terms and Conditions shall govern the provision of
all services by Applied Biosystems (herein called “AB”) to customers of BioTrove, Inc.
(“BT”) under Performance Plans and other agreements for services relating to
instruments and other equipment that have been originally sold by AB
to BT, and that
have been resold by BT to its customers (“Customer(s)”), including the maintenance,
repair, installation, relocation or servicing of such instruments and other equipment,
and sets forth the agreement between AB and Customer regarding the performance of such
services, unless other terms are specifically designated in writing by AB to apply to a
specific service pursuant to Section 19 below.
	 
	 	2.	 	Services under all Performance Plans are provided during normal working hours
(Monday through Friday, 8:00 AM to 5:00 PM Pacific Standard Time, excluding holidays).
Telephone support hours are 8:00 AM to 5:00 PM Pacific Standard Time, excluding
holidays. Planned maintenance (“Planned Maintenance”) will be performed in accordance
with AB’s Planned Maintenance procedures and checklist for the instrument or component
being serviced.
	 
	 	3.	 	The decision to repair or replace any parts of the instrument will be made by
AB on the basis of which approach will provide the Customer with the best service.
Parts and components replaced or otherwise utilized in the repair of the instrument may
be either new or refurbished at the discretion of AB.
	 
	 	4.	 	AB will use reasonable efforts under the circumstances to provide service as
quickly as possible. The service will be scheduled at a time mutually agreed upon by
AB and the Customer.
	 
	 	5.	 	AB warrants that it will provide its services at least in accordance with
generally accepted standards prevailing in the instrument repair industry at the time
and place performed. Warranty claims must be made within ninety (90) days after
services are performed. AB MAKES NO OTHER WARRANTIES OF ANY KIND WHATSOEVER, EXPRESS
OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF FITNESS FOR A PARTICULAR PURPOSE
OR MERCHANTABILITY WITH RESPECT TO ITS SERVICES, WHICH WARRANTIES ARE EXPRESSLY
DISCLAIMED. AB’S SOLE LIABILITY AND RESPONSIBILITY UNDER THIS AGREEMENT FOR BREACH OF
WARRANTY IS RE-PERFORMANCE OF THE SERVICES WITHIN A REASONABLE TIME OR RETURN OF THE
FEE PAID BY THE CUSTOMER FOR THE DEFECTIVE

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

33

 

	 	 	 	SERVICES AT AB OPTION. THESE ARE BT’S AND CUSTOMER’S SOLE AND EXCLUSIVE REMEDIES
FOR ANY BREACH OF WARRANTY.
	 
	 	6.	 	Performance Plans do not cover replacement of parts, costs, repairs or
adjustments due to defects caused by or repairs necessitated by acts of nature, misuse,
damage not caused by AB, carelessness or unauthorized changes to the instrument made by
BT or the Customer, or any of BT’s or Customer’s employees, agents or an unauthorized
contractor, or intrusive activity, including without limitation computer viruses,
hackers or other unauthorized interactions with instrument or software that
detrimentally affects normal operations. Performance Plans also do not cover repair or
replacement of parts that are radioactive or contaminated with biological, toxic or
other dangerous materials or substances.
	 
	 	7.	 	Performance Plans do not cover costs, repairs, or adjustments made necessary by
connection of the instrument to electrical services or other utilities not in
accordance with the installation requirements for the instrument, or by any
interruption or surge in voltage (see Instruction Manual for specifications).
	 
	 	8.	 	Unless otherwise expressly stated by AB in writing or under the terms of the
purchased Performance Plan, the initial term of a Performance Plan and this Agreement
is the one (1) year period of the Performance Plan purchased by the Customer,
commencing on the date designated by AB in its quotation or otherwise specified to
Customer. A Performance Plan and this Agreement may be terminated by either party upon
at least thirty (30) days written notice to the other party. Termination will be
effective thirty (30) days after the receipt of such notice, or at a later date if one
is so specified in the notice (“Termination Date”). Termination cannot be made
effective prior to thirty (30) days after notice is received. AB will cease
performance under this Agreement and underlying Performance Plan on the Termination
Date unless the Customer specifies a separate, earlier date in writing (“Cessation
Date”). In that event, AB will cease performance under this Agreement and underlying
Performance Plan on such Cessation Date. No refunds or credits will be made on account
of the early termination of any Performance Plan or other agreement for services.
	 
	 	9.	 	IN NO EVENT SHALL AB BE RESPONSIBLE OR LIABLE, WHETHER IN CONTRACT, TORT,
WARRANTY OR UNDER ANY STATUTE OR ON ANY OTHER BASIS, FOR SPECIAL, INDIRECT, INCIDENTAL,
MULTIPLE, PUNITIVE OR CONSEQUENTIAL DAMAGES ARISING OUT OF OR IN CONNECTION WITH THE
PERFORMANCE OR FAILURE TO PERFORM SERVICES OR OTHERWISE, EVEN IF AB IS ADVISED IN
ADVANCE OF THE POSSIBILITY OF SUCH DAMAGES; AND IN NO EVENT SHALL AB BE LIABLE FOR ANY
LOSS OR INJURY THAT IS THE RESULT OF INSTRUMENT OR PRODUCT

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

34

 

	 	 	 	ERROR OR THE FAILURE OF AN INSTRUMENT OR OTHER PRODUCT TO PERFORM IN ACCORDANCE WITH
ITS SPECIFICATIONS. WITHOUT LIMITING THE FOREGOING. AB’s total cumulative
liability in connection with this Performance Agreement and any underlying
performance plan, including without limitation SERVICES RENDERED thereunder, in
contract, tort, WARRANTY or otherwise, will not exceed the amount of fees paid to AB
for the underlying performance plan.
	 
	 	10.	 	Parts in contact with any liquid are considered wetted and may be deemed user
replaceable and not covered by any Performance Plan, including, but not limited to
seals, filters, gaskets, etc.
	 
	 	11.	 	Use of any non-AB’s parts or reagents that deposit or cause to be deposited
residual matter in the instrument flow path or that otherwise interrupt the flow path
that are reasonably determined by AB to have caused instrument failure will require
remedial repairs of the effected parts to be completed outside a Performance Plan at
AB’s then prevailing rates for billable service.
	 
	 	12.	 	Ancillary equipment not manufactured by AB, such as third party computers, may
be excluded from any Performance Plan, at AB’s discretion. AB will pass on to the
Customer any manufacturer’s warranty of any such ancillary
equipment, to the extent
permitted by the manufacturer.
	 
	 	13.	 	AB makes no representation whatsoever that services under any Performance Plan
or this Agreement satisfy or will satisfy any requirements of any governmental body or
other organization, including, but not limited to, any requirement of the United States
Food and Drug Administration or the International Organization for Standardization.
Customer agrees that it is the Customer’s responsibility to ensure that such services
are adequate to meet its regulation/certification requirements and that all
requirements of any governmental body or other organization,
including, but not
limited to, any requirement of the United States Food and Drug Administration or the
International Organization for Standardization are the responsibility of Customer.
	 
	 	14.	 	Neither this Performance Agreement nor any Performance Plan is assignable or
otherwise transferable by Customer. Any assignment or transfer or attempt to assign or
to transfer by Customer shall be void.
	 
	 	15.	 	AB may require a completed Certificate of Decontamination, or transfer of an
instrument to a suitable safe and secure location, as a condition to servicing any
instrument. Customer warrants that any instrument or component to be
serviced will be
fully decontaminated of radioactive, biological, toxic or other dangerous

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

35

 

	 	 	 	materials or substances prior to servicing so that the service technician will not
be exposed to any such materials.
	 
	 	16.	 	Performance Plans do not include customer training or services related to the
relocation of instruments unless otherwise specifically stated in writing by AB in any
particular case.
	 
	 	17.	 	Neither party shall be liable for delays in performance or nonperformance in
whole or in part, or for loss, injury, delay, expenses, damages or other casualty
suffered or incurred on account of or due to, any causes that are beyond its reasonable
control, such as, without limiting the generality of the foregoing, acts of God,
fires, strikes, trade disputes, riots, embargos, earthquakes, storms, acts of the
government, power losses or shortages, or inability to obtain parts or supplies,
provided that the foregoing shall not apply to any obligation to pay money due.
	 
	 	18.	 	This Performance Agreement, together with AB’s quotation regarding the
Performance Plan(s) or other services subject to these terms and conditions, and AB’s
description of the services provided under the Performance Plan purchased by the
Customer (collectively, “AB’s Terms”), represents the entire agreement between the
parties with respect to the subject matter herein and supersedes and entirely replaces
(i) any previous agreements between the parties with respect to the subject matter
herein and (ii) any pre-printed, standard or other terms set forth in customer
purchase order or any other document not signed by an authorized
representative of AB,
which are hereby rejected and shall be void. Customer’s submission of a purchase order
or other instrument regarding the purchase of a Performance Plan in response to AB’s
quotation or any other AB document that includes or incorporates
these terms shall be
deemed acceptance of these terms to the exclusion of any other terms and conditions
appearing in or referenced in such purchase order or other instrument, which are hereby
deemed to be material alterations and notice of objection to which is
hereby given,
notwithstanding anything contained to the contrary in such purchase order or other
instrument or elsewhere. Any acceptance by AB of any offer of Customer is expressly
conditioned on Customer’s assent to and acceptance of AB’s Terms to the extent they are
additional or different terms. Except as otherwise provided in these terms, in the
event of an inconsistency between these terms and the terms appearing on AB’s quotation
or other agreement signed by an authorized representative of AB, the terms appearing on
AB’s quotation or such other agreement shall supersede and take precedence over the
inconsistent provision(s) of these terms, and all other provisions of these terms shall
remain in full force and effect.
	 
	 	19.	 	No amendment of these terms or modification thereof shall be binding unless in
writing and signed by a duly authorized representative of both AB and Customer. AB’s
failure to exercise any rights hereunder shall not constitute or he deemed a

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

36

 

	 	 	 	waiver or forfeiture of such rights or any other rights hereunder. Headings are
included herein for convenience of reference only and shall not constitute a part of
these terms for any other purpose. If any provision of these terms shall be held to
be invalid or unenforceable for any reason, such provisions shall, to the extent of
such invalidity or enforceability, be severed without in any way affecting the
remainder of such provision or any other provision thereof, all of which shall
continue in full force and effect. No additions or modifications to this
Performance Agreement shall be valid unless specifically agreed to in writing by
both parties. This Performance Agreement and any underlying Performance Plan shall
be governed by the laws of the State of California, exclusive of its or any other
jurisdiction’s conflict of laws rules.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

37

 

TERMS OF INDIVIDUAL PERFORMANCE PLANS

Applied Biosystems Performance Agreement Terms and Conditions set forth above are incorporated into
and are an integral part of each of the Plans listed below.

1. BIOASSURANCE PERFORMANCE PLAN

Inclusions:

A. Parts, labor and travel for remedial repair and the one Planned Maintenance visit(s) each year
designated by Applied Biosystems for the instrument covered by the Plan.

B. Telephone access to technical support.

C. Priority repair service response time.

	 	 	 	 	 	 	 	 	 
	ACCEPTED AND AGREED TO:	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	APPLERA CORPORATION	 	[CUSTOMER]	 	 
	 
	 	 	 	 	 	 	 	 
	THROUGH ITS
APPLIED BIOSYSTEMS GROUP	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	By:
	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Print
Name:

	 	 	 	Print
Name:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Title:

	 	 	 	Title:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	Date:	 	 	 	 
	 

	 	 
	 	 	 	 	 	 

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

38

 

EXHIBIT D

ABI MS Specifications

API 4000 LC/MS/MS System — Sole Source Specifications

Description: [***].

[***]

[***]

A [***] to [***]. [***] the [***] and [***] as [***], but [***] an [***] whose [***] and
[***] are
[***]. [***] at [***].

	 	 	 
	[***]:

	 	+/- [***].
	 
	 	 
	[***]:

	 	[***] to [***].
	 
	 	 
	[***]:

	 	[***]
	 
	 	 
	[***]:

	 	Zero [***]
	 
	 	 
	[***]

	 	[***]
	 
	 	 
	[***]:

	 	Zero [***]
	 
	 	 
	[***]:

	 	Up to [***]
	 
	 	 
	[***]

	 	one [***]
	 
	 	 
	[***]

	 	All the [***] are [***].

[***]

[***]. [***].

	 	 	 
	[***]:

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

	 	[***]
	 
	 	 
	[***]:

	 	[***]
	 
	 	 
	[***]:

	 	[***]

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

39

 

	 	 	 
	[***]:

	 	[***] to [***]
	 
	 	 
	[***]:

	 	[***] to [***]
	 
	 	 
	[***]:

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

	 	All [***] are [***].
	 
	 	 
	[***]:

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

	 	[***] for [***].
	 
	 	 
	[***]
	 	 
	 
	 	 
	[***]:

	 	All [***] can be [***] and can be [***].
	 
	 	 
	[***]:

	 	[***] to [***] the [***] to [***].
	 
	 	 
	[***]:

	 	All [***] are [***] to [***] of [***].
	 
	 	 
	[***]
	 	 

     [***]

The [***] of a [***] by a [***]. A [***] is placed between the [***] and the [***] to [***] the
[***]. A [***] and [***] the [***] and is used for [***]. The [***] is also a [***].

     [***]

[***] to [***] with [***] and [***] for maintaining [***] and [***]. [***] of [***], [***] and
[***] of [***] or [***].

     [***]

[***]. [***] with [***] and [***].

     [***]

[***] operated in the [***] and capable of [***] between [***] and [***]. The [***] is [***].

     [***]

[***] with [***] ([***] may be [***] as it is [***]).

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

40

 

	 	 	 	[***]

[***] and [***] a [***] for [***] and [***]. [***]:

	 	•	 	Rapid [***]
	 
	 	•	 	Alternate [***] capability for [***] and [***] from a [***]
	 
	 	•	 	[***] for [***]
	 
	 	•	 	[***] and [***]
	 
	 	•	 	[***] of [***] from a [***] ([***] and [***])
	 
	 	•	 	Fully [***]
	 
	 	•	 	Completely [***] and [***] capabilities
	 
	 	•	 	Compatible with [***] all [***] available [***] and [***]
	 
	 	•	 	Easy, [***]. Compatible with [***]: [***].
	 
	 	•	 	[***] and [***] to [***] such as [***], [***], [***], [***].
	 
	 	•	 	[***] and [***] between [***]
	 
	 	•	 	[***] of [***] and [***] to [***] and [***]
	 
	 	•	 	[***] for [***] of the [***]

[***]

	 	 	 	[***]

[***] to [***] in [***] and [***]

	 	 	 	[***]

[***]

	 	 	 	[***]

The [***] will be able to [***] from [***] to [***] in [***] and [***] to [***] in another [***].
The [***] will be able to do this in a [***] the [***] and [***] to [***].

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

41

 

     [***]

[***] to [***].

     [***]

[***] over [***] with [***] and [***] has [***] and [***].

     [***]

All [***] in the [***] of the [***] of [***] will [***] without [***] to [***] or [***] with [***].
This shall be [***] by [***] a [***] of [***] to [***] and [***] of [***] at [***] in [***]
([***]).

A [***] be [***] between the [***] of the [***] at [***] from the [***] of [***] at [***]. This
[***] shall be [***] when [***] a [***] of [***] of [***] at [***], with [***] to [***] all [***]
of the [***].

     [***]

When [***] of [***] at [***], the [***] of all [***] ([***] the [***]) of the [***] will be [***]
to or [***] than the [***] ([***] and [***]) but without [***]. [***] be [***] at [***] ([***]).

     [***]

The [***] using the [***] in [***] on the [***] of [***] through a [***] at a [***] of [***] ([***]
and [***]), [***] ([***]), [***] ([***]), [***] and [***] on ([***] and [***]) will be greater than
[***] ([***]) with the [***] less than [***].

The [***] the [***] in [***] on the [***] to [***] of [***] of a [***] of [***] at a [***] of
[***]
([***] and [***]), [***] ([***]), [***] ([***] at [***]), [***] and [***] on ([***] and [***]) will
be greater than [***] ([***]) with the [***] less than [***].

The [***] the [***] in [***] on the [***] to [***] on [***] of [***] of a [***] of [***] at a
[***]
of [***] ([***] and [***]), [***] ([***]), [***] ([***] at [***]), [***] and [***], will be [***]
([***]) with the [***] less than [***].

The [***]-to-[***] using the [***] in [***] on the [***] on [***] of [***] ([***] of a [***]) of
[***] at a [***] of [***] ([***] and [***]), [***] ([***]), [***] ([***] at [***]), [***] and
[***], will be [***]. The [***]-to-[***] will be calculated [***] the [***] of the [***].

[***] of [***] will produce a [***] ([***]) with a [***] at least [***] the [***].

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

42

 

     [***]

The [***] of [***] ([***]) will be determined to an [***] of [***] introduced through the [***] in
[***].

[***]

     [***]

The [***] is [***] by [***] by [***].

     [***]

The [***] weighs approximately [***], [***] the [***] and the [***].

     [***]

Two [***] to [***], [***] with two [***] are [***] to [***] the [***].

     [***]

High [***] at [***] ([***] of [***]) is used for the [***]. [***] is used for the [***]. [***] is
[***] at [***]. [***], [***] ([***]) at [***] is used for the [***] ([***] of [***]).

     [***]

A [***] is [***] to remove [***] and [***] from the [***].

     [***]

To ensure the [***] for the [***], the [***] must be maintained [***] and [***] ([***] to [***])
[***] ([***]) with a [***] of [***] and [***]. The [***] is [***] ([***]) for the [***], [***] and
[***] from the [***] or [***].

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

43

 

API 5000TM LC/MS/MS System — Sole Source Specifications

Description: [***].

[***]

     [***]

The [***] is an advanced [***] ([***]) [***] and [***] ([***]) [***]. The [***] features [***] for
[***] and [***] for [***]:

	 	 	 
	[***]:

	 	[***] and [***]. Each [***] is [***] for [***] by the [***] of the
[***].
	 
	 	 
	[***]:

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

	 	[***], [***] with [***].
	 
	 	 
	[***]:

	 	Two [***] one [***] and one [***] for best [***].
	 
	 	 
	[***]:

	 	Easy [***] in [***]. The [***] can be [***] from the [***] without
[***] and be [***] with a [***] one in [***] than [***].
	 
	 	 
	[***]:

	 	[***] fully [***] to [***] of [***].
	 
	 	 
	[***]:

	 	Fully [***]. All [***] and [***] to the [***] are [***] the [***]
is [***] from the [***].
	 
	 	 
	[***]
	 	 

A [***] compatible with the [***]. When [***] in the [***], the [***] a [***] of [***] in
the [***], [***] for [***].

	 	 	 
	[***]:

	 	From [***] to [***], [***] selectable.
	 
	 	 
	[***]:

	 	From [***] to [***], without [***].
	 
	 	 
	[***]:

	 	From [***] to [***], with [***].
	 
	 	 
	[***]:

	 	From [***] to [***] ([***]), [***] selectable. [***] or [***].
	 
	 	 
	[***]:

	 	From [***] to [***] and from [***] to [***], [***]. [***] or [***].

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

44

 

	 	 	 
	[***]:

	 	[***] and [***].
	 
	 	 
	[***]:

	 	[***] for [***] by [***].
	 
	 	 
	[***]:

	 	All [***] except [***] positioning are under [***].

[***] for [***]

A [***] compatible with the [***]. When inserted in the [***], the [***] via [***] a [***],
[***] for optimum [***] and reduced [***]. [***] in [***] is achieved at the [***] of the
[***] by a [***].

	 	 	 
	[***]:

	 	From [***] to [***], [***].
	 
	 	 
	[***]:

	 	From [***] to [***], without [***].
	 
	 	 
	[***]:

	 	From [***] to [***], with [***].
	 
	 	 
	[***]:

	 	From [***] to [***] ([***]), [***]. [***].
	 
	 	 
	[***]:

	 	From [***] to [***], [***].
	 
	 	 
	[***]:

	 	[***] and [***].
	 
	 	 
	[***]:

	 	[***] for [***] by [***].
	 
	 	 
	[***]:

	 	All [***] except [***] are [***].
	 
	 	 
	[***]

	 	 

The [***] is a [***] that offers the [***] to [***] the [***] during a [***] for each individual
[***] or [***] group.

[***] the [***] of the [***], the [***] the [***] and [***]. The [***] enhances [***] over a
[***], improves [***] and accelerates [***].

	 	 	 
	[***]:

	 	One [***] and one [***] for [***], with [***] for [***] by [***].
	 
	 	 
	[***]:

	 	[***] or [***]. [***] can be [***] at a [***] of one [***] ([***]).
	 
	 	 
	[***]:

	 	Sample [***] to the [***] or [***] by an [***] ([***]) [***].

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

45

 

	 	 	 
	[***]:

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

	 	Two [***], [***] with [***].
	 
	 	 
	[***]:

	 	[***]: from [***] to [***]; [***]: from [***] to [***]; without
[***].
	 
	 	 
	[***]:

	 	From [***] to [***], with [***].
	 
	 	 
	[***]:

	 	From [***] to [***] ([***]), [***]. [***].
	 
	 	 
	[***]:

	 	From [***] to [***] and from [***] to [***] for the [***], [***].
[***].
	 
	 	 
	[***]:

	 	[***] and [***]. [***] (at [***]).
	 
	 	 
	[***]:

	 	Two [***] one [***] and [***] — for best performance [***].
	 
	 	 
	[***]:

	 	Easy [***]. [***] removed [***] without [***] less than [***].
	 
	 	 
	[***]:

	 	[***] to eliminate [***] of [***].
	 
	 	 
	[***]:

	 	Fully [***]. All [***] and [***] to the [***] are automatically
[***] when the [***] is [***] from the [***].
	 
	 	 
	[***]:

	 	All [***] except [***] are [***].
	 
	 	 
	[***]
	 	 

The [***] uses a [***] and [***] to [***] by [***] or [***] and can be used for [***] and [***].

The [***] features a [***] and [***] similar to the [***] for high [***] and [***].

	 	 	 
	[***]:

	 	[***] for [***] with [***] for [***] by [***].
	 
	 	 
	[***]:

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

	 	One [***], [***] with [***].
	 
	 	 
	[***]:

	 	[***] ([***]).
	 
	 	 
	[***]:

	 	From [***] to [***], [***]. [***] recommended for [***].

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

46

 

	 	 	 
	[***]:

	 	[***] ([***] or [***]) or other [***] with appropriate [***].
	 
	 	 
	[***]:

	 	From [***] to [***], without [***].
	 
	 	 
	[***]:

	 	From [***] to [***], with [***].
	 
	 	 
	[***]:

	 	From [***] to [***], [***].
	 
	 	 
	[***]

	 	From [***] to [***] ([***]), [***] selectable. [***]
recommended for best [***].
	 
	 	 
	[***] and [***]:

	 	[***] and [***]. [***].
	 
	 	 
	[***]:

	 	Two [***] — one [***] and one [***] — for best performance
[***].
	 
	 	 
	[***]:

	 	Easy [***] in [***]. The [***] can be [***] from the [***]
without [***] and be [***] with a [***] in [***] than [***].
	 
	 	 
	[***]:

	 	[***] to eliminate [***] of [***].
	 
	 	 
	[***]:

	 	Fully [***]. All [***] and [***] to the [***] are [***] the
[***] is [***] from the [***].
	 
	 	 
	[***]:

	 	All [***] except [***] are [***].

[***]

     [***]

The [***] must [***] a single [***] from [***] into the [***], followed immediately by a [***] for
[***] and [***]. This must be followed by a [***] followed by a [***]. A [***] must be located
between the [***] and the [***] to help further [***] the [***]. A [***] with [***] must follow
the [***] and be used for [***]. The [***] must also be a [***].

     [***]

The [***] must have a [***]-to-[***] with a [***] for maintaining [***] and [***]. It must be
[***] of [***] of [***], [***], and [***] over long periods of time without [***] or [***].

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

47

 

     [***]

     The [***] must have a [***] with [***]. It must automatically [***] and [***] after [***].

     [***]

     The [***] must have a [***] that is operated in the [***] and is [***] of [***] and [***].

     The [***] must be able to [***].

[***] and [***]

     [***]

The [***] must feature a [***] system with [***] (e.g. [***] may be [***] as it is [***]).

     [***]

The [***] must include a [***] and [***] that incorporates a [***] for [***] and [***]. [***]
should [***]:

	 	•	 	[***] ([***])
	 
	 	•	 	Alternate [***] and [***] for [***] and [***] from a single [***]
	 
	 	•	 	Product [***] for [***]
	 
	 	•	 	[***] and [***]
	 
	 	•	 	[***] of each [***] from a [***] ([***] and [***])
	 
	 	•	 	Compatible with a [***] of [***], [***], [***] and [***]
	 
	 	•	 	[***] of and [***] of [***] from an [***]
	 
	 	•	 	Data [***] of [***], [***] and [***] to [***] and [***]
	 
	 	 	 	[***]
	 
	 	 	 	The [***] must have or be able to [***] the [***]:
	 
	 	•	 	A [***] and [***] ([***] based on [***] and [***] and [***])
	 
	 	•	 	[***] for [***] and [***]

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

48

 

	 	•	 	[***]
	 
	 	•	 	[***] and [***]
	 
	 	•	 	[***] and easy [***] to [***] such as [***], [***], [***], etc.
	 
	 	•	 	[***], [***] utilizing [***]

[***]

     [***]

The [***] must have a [***] of [***] in [***] and [***]

     [***]

There must be a [***] of [***].

     [***]

The [***] must be able to [***] from [***] to [***] in [***] and [***] to [***] in another
[***]. The [***] must be able to do this in a [***], [***] the [***] and [***] to [***].

     [***]

The [***] must have a [***] of [***] to [***] ([***]).

     [***]

     The [***] must have a [***] of [***] at [***] with [***] and after it has [***] and [***].

[***]

The [***] that must be [***] of the [***] should [***] those stated in “[***]” of the [***]

     The [***] below are taken from the [***].

     [***]

[***] — When [***] ([***]) [***] at [***] in [***], the [***] ([***]) of the [***] be equal to
or
greater than [***] at [***] ([***]).

[***] — When [***] ([***]) [***] at [***] in [***], the ([***]) [***] of the [***] must be
equal to
or greater than [***] at [***] ([***]).

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

49

 

     [***]

[***] — When [***] ([***]) [***] at [***] in [***], the ([***]) [***] of the [***] must be
equal to
or greater than [***] at [***] ([***]).

[***] — When [***] ([***]) [***] at [***] in [***], the ([***]) [***] of the [***] must be
equal to
or greater than [***] at [***] ([***]).

     [***]

[***] of [***] at [***], the [***] of the [***] shall be equal to or greater than [***] of the
[***] ([***]) [***] at [***] ([***]).

     [***] and [***]

The [***] using the [***] in [***] on the [***] to [***] on [***] of [***] through a [***] at a
[***] of [***] ([***] and [***]), [***] ([***]), [***] ([***] at [***]), [***] and [***] on ([***]
and [***] fully [***]) will be greater than [***].

The [***] using the [***] in [***] on the [***] to [***] on [***] of [***] of a [***] of [***] at a
[***] of [***] ([***] and [***]), [***] ([***]), [***] ([***] at [***]), [***] and[***], will be
[***] than [***].

[***]

The following additional [***] will not be [***] during a standard [***] but may be [***] by [***].
[***] have [***] the [***]. To [***] these [***] and/or [***], that are not [***] at [***], may
be required. Since these [***] require additional [***], [***] and [***] there may be an [***] in
order to have any of these [***] of the [***] and/or at the [***].

[***] for [***] and [***]

[***] and [***] on [***], increase [***] are [***] in [***] ([***]) and in [***] below
[***]
([***]).

[***]

The [***] using the [***] in [***] on the [***] to [***] on a [***] through a [***] at a
[***] of [***] ([***] and [***]) [***], [***] ([***] at [***]) will be greater than [***].

[***]

[***]

[***] ([***]) and [***] and [***] with a [***] dwell time. Specs: [***].

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

50

 

[***]

[***] and [***] and [***] with a [***]. [***].

[***] with [***] in [***]

The difference in [***] for [***] ([***], [***], [***]) [***] with [***].

[***]

[***] in [***]

The [***] for [***] ([***], [***], [***]) at [***] ([***]) [***] ([***]), while
[***] a
[***] by [***], should be similar within [***].

[***] in [***]

The [***] for [***] ([***], [***], [***], [***], [***]), [***] shall have a [***].

[***] in [***]

The [***] for [***] ([***], [***], [***], [***]), [***], shall have a [***].

[***] in [***]

The [***] for [***] ([***], [***], [***], [***]), [***], shall have a [***].

[***]

[***]

The [***] must be around [***] by [***] by [***]. It should be [***] in a [***] with [***]
by [***] by [***].

[***]

The [***] must weigh approximately [***], excluding the [***] and the [***].

[***]

The [***] must be [***] by two [***], to [***], [***] single [***] with two [***] each.

[***]

The [***], including [***], must only [***].

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

51

 

[***]

[***] at [***] ([***] of [***]) must be used for the [***] for the [***] be used for the
[***]. [***] must be [***] at [***]. [***] ([***]) at [***] must be used for the [***]
(with a [***]).

[***]

The [***] must use a [***] to [***] and [***] from the [***] and [***].

[***]

To ensure the [***] for the [***], the [***] must be [***] and [***] ([***]) [***] ([***])
with a [***] between [***]. The [***] must be around [***] ([***]) for the [***] and [***]
from the [***].

Patents

     The [***] may [***] some or all of the following [***]:

	 	•	 	[***] (U.S. patent numbers [***] and [***])
	 
	 	•	 	[***] (U.S. patent numbers [***], [***] and [***])

For Research Use Only. Not for use in [***].

© 2005 Applera Corporation and MDS Inc. All Rights Reserved. Information subject to change
without notice.

Applera, AB (design), iScience, and iScience (design) are trademarks and Applied Biosystems
is a registered trademark of Applera Corporation or its subsidiaries in the US and/or
certain other countries.

API 5000, Curtain Gas, DuoSpray, PhotoSpray, and Turbo V are trademarks and LINAC, Q TRAP.
QSTAR and TurboIonSpray are registered trademarks of Applied Biosystems/MDS SCEIX, a joint
venture between Applera Corporation and MDS Inc.

Windows is a registered trademark of Microsoft Corporation.

All other trademarks are the property of their respective owners.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

52

 

Differentiating Features and Benefits of the 4000 Q TRAP® LC/MS/MS System

Description: [***].

     [***]

[***]

The [***] is an advanced [***] ([***]) [***] and [***] ([***]) [***]. The [***] features [***] for
[***] and [***] for improved [***]:

	 	 	 
	[***]:

	 	[***] and [***] available. Each [***] is [***] for [***] by the
[***] of the [***].
	 
	 	 
	[***]:

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

	 	Three [***], [***] with [***].
	 
	 	 
	[***]:

	 	Two [***] — one [***] and one [***] — for best [***].
	 
	 	 
	[***]:

	 	Easy [***] in [***]. The [***] can be [***] from the [***] without
[***] and be [***] with a [***] in less than [***].
	 
	 	 
	[***]:

	 	[***] to [***] of [***].
	 
	 	 
	[***]:

	 	Fully [***]. All [***] and [***] to the [***] are automatically
[***] when the [***] is [***] from the [***].

[***] for [***]

A [***] compatible with the [***]. When [***] in the [***], the [***] via [***] a [***] of
[***] located in the [***], [***] for optimum [***].

	 	 	 
	[***]:

	 	From [***], [***] selectable.
	 
	 	 
	[***]:

	 	From [***] to [***], without [***].
	 
	 	 
	[***]:

	 	From [***] to [***], with [***] gradient capability.
	 
	 	 
	[***]:

	 	From [***] to [***] ([***]), [***] selectable. [***] or [***].
	 
	 	 
	[***]:

	 	From [***] to [***] and from [***] to [***], [***]. [***] or [***].

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

53

 

	 	 	 
	[***]:

	 	[***] and [***].
	 
	 	 
	[***]:

	 	[***] for [***] by [***].
	 
	 	 
	[***]:

	 	All [***] are under [***].

[***] for [***]

A [***] compatible with the [***]. [***] in the [***], the [***] via [***] a [***], [***]
for optimum [***] and reduced [***]. [***] in [***] is [***] at the [***] of the [***] by a
[***].

	 	 	 
	[***]:

	 	From [***] to [***], [***].
	 
	 	 
	[***]:

	 	From [***] to [***], without [***].
	 
	 	 
	[***]:

	 	From [***] to [***], with [***].
	 
	 	 
	[***]:

	 	From [***] to [***] ([***]), [***] selectable. [***].
	 
	 	 
	[***]:

	 	From [***] to [***], [***] selectable.
	 
	 	 
	[***]:

	 	[***] and [***].
	 
	 	 
	[***]:

	 	[***] for [***] by [***].
	 
	 	 
	[***]:

	 	All [***] source [***] except [***] are under [***].
	 
	 	 
	 
	 	     
   [***]

The [***] is a [***] system that offers the ability to select the [***] during a [***] for each
[***] or [***].

[***] the [***] of the advanced [***], the [***] the [***] and [***]. The [***] enhances [***]
over a [***], [***] and [***].

	 	 	 
	[***]:

	 	One [***] and [***] for [***], with [***] for [***] by [***].
	 
	 	 
	[***]:

	 	[***] or [***]. [***] can be [***] at a [***] of [***] ([***]).
	 
	 	 
	[***]:

	 	[***] to the [***] or [***] by an [***] ([***]) under [***].
	 
	 	 
	[***]:

	 	[***].

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

54

 

	 	 	 
	[***]:

	 	Two [***], [***] with [***].
	 
	 	 
	[***]:

	 	[***]: from [***] to [***]; [***]: from [***] to [***]; without
[***].
	 
	 	 
	[***]:

	 	From [***] to [***], with full [***].
	 
	 	 
	[***]:

	 	From [***] to [***] ([***]), [***] selectable. [***].
	 
	 	 
	[***]:

	 	From [***] to [***] and from [***] to [***] for the [***], [***]
selectable. [***].
	 
	 	 
	[***]:

	 	[***] and [***]. [***] ([***]).
	 
	 	 
	[***]:

	 	Two [***] one [***] and one [***] for best [***].
	 
	 	 
	[***]:

	 	Easy [***]-in [***]. The [***] can be [***] from the [***] without
[***] and be [***] with a [***] in less than [***].
	 
	 	 
	[***]:

	 	[***] fully [***] to eliminate [***] of [***].
	 
	 	 
	[***]:

	 	Fully [***]. [***] and [***] to the [***] are [***] when the [***]
is [***] from the [***].
	 
	 	 
	[***]:

	 	All [***] except [***] are under [***].

[***]

The [***] uses a [***] and [***] to [***] by [***] or [***] and can be used for [***] and [***].
The [***] features a [***] and [***] to the [***] for [***] and improved [***].

	 	 	 
	[***]:

	 	[***] for [***] with [***] for [***] by [***].
	 
	 	 
	[***]:

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

	 	One [***], [***] with [***].
	 
	 	 
	[***]:

	 	[***] ([***]).
	 
	 	 
	[***]:

	 	From [***] to [***], [***] selectable. [***] recommended
for [***].
	 
	 	 
	[***]:

	 	[***] ([***] or [***] recommended) or other [***] with
appropriate [***].

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

55

 

	 	 	 
	[***]:

	 	From [***] to [***], without [***].
	 
	 	 
	[***]:

	 	From [***] to [***], with full [***].
	 
	 	 
	[***]:

	 	From [***] to [***], [***] selectable.
	 
	 	 
	[***]:

	 	From [***] to [***] ([***]), [***] selectable. [***]
recommended for [***].
	 
	 	 
	[***] and [***]:

	 	[***] and [***]. [***] adjustable [***].
	 
	 	 
	[***]:

	 	Two [***] — one [***] and one [***] — for best [***].
	 
	 	 
	[***]:

	 	Easy [***]-in [***]. The [***] can be [***] from the
[***] and be [***] with a [***] in less than [***].
	 
	 	 
	[***]:

	 	[***] to eliminate [***] of [***].
	 
	 	 
	[***]:

	 	Fully [***]. All [***] and [***] to the [***] are [***]
the [***] is [***] from the [***].
	 
	 	 
	[***]:

	 	All [***] except [***] are [***].

[***]

[***] for [***] and [***] at [***], [***]. [***], [***], and [***] for [***] and on-[***]
as [***]
as [***] of [***] up to [***]. Three [***] allow for maximum [***] for [***] as well as [***] and
[***].

	 	 	 
	[***]:

	 	[***] from [***] to [***], [***] on the [***] of [***].
	 
	 	 
	[***]:

	 	From [***] to [***], [***] selectable.
	 
	 	 
	[***]:

	 	From [***] to [***], with full [***].
	 
	 	 
	[***]:

	 	[***] for [***], [***] of [***].
	 
	 	 
	[***]:

	 	Easy [***]-in [***]. The [***] can be removed from the
[***] without [***] and be [***] with a [***] one in less
than [***].
	 
	 	 
	[***]:

	 	[***] at [***], [***] and [***] off-[***].
	 
	 	 
	[***]:

	 	Two [***] and [***] for best [***].

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

56

 

	 	 	 
	[***]:

	 	Fully [***]. All [***] and [***] to the [***] are [***]
when the [***] is [***] from the [***]. The [***] to the
[***] is [***] when the [***] for [***] or for [***].
	 
	 	 
	[***]:

	 	All [***] are [***].
	 
	 	 
	[***]:

	 	[***] with [***] for [***] of [***] in the [***]. [***]
from [***] to [***].
	 
	 	 
	[***]:

	 	[***] or [***], [***] on the [***] and [***].
	 
	 	 
	[***] of [***]:

	 	Three [***] for [***] of [***].
	 
	 	 
	[***]:

	 	[***] for
[***] at [***] from [***] to
[***]
	 
	 	 
	[***]:

	 	[***] for [***] at [***] from [***] to [***]
	 
	 	 
	[***]:

	 	[***] for [***] from [***] to [***]

[***]

     [***]

The [***] a [***] from [***] into the [***], [***] by a [***] followed by a [***]. A [***] is
located between the [***] and the [***] to [***]. A [***] with [***] follows the [***] is [***]
for [***]. The [***] is also a [***].

     [***]

The [***] has a [***] to [***] with [***] for [***] and [***]. It is capable of [***] of [***]
such as [***], [***] and [***] over [***] of [***] without [***] or [***].

     [***]

The [***] has a [***] with [***]. It [***] and [***] after [***].

     [***]

[***] ([***]) [***] in the [***] and [***] of [***] and [***]. The [***] is
[***].

     [***] and [***]

          [***]

     [***] with [***] (e.g. [***] be [***] as it is [***]).

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

57

 

               [***] and [***]

The system includes a [***] and [***] that [***] a [***] user [***] for [***] and [***]. [***]
include:

	 	•	 	[***] (up to [***] and [***])
	 
	 	•	 	Combine [***] and [***], [***] and [***] ([***]) for [***] and [***] from a single [***]
	 
	 	•	 	[***] for [***]
	 
	 	•	 	[***] and [***]
	 
	 	•	 	Automatic [***] of [***] from a [***] ([***])
	 
	 	•	 	Compatible with a [***] of [***], [***], [***] and [***]
	 
	 	•	 	[***] of and [***] of [***] from an [***]
	 
	 	•	 	[***] of [***], [***] and [***] to [***] and [***]

These [***] enable the following [***]:

	 	•	 	[***] — [***] ([***]) [***] with ([***]) [***], [***] and [***] through [***] ([***])
for [***] and [***] in a single [***] or [***].
	 
	 	•	 	[***] — Combine [***] and/or [***] with [***] and [***] through [***] ([***]) [***] to
[***] and [***] with [***] as [***] or [***] in a [***] at the [***]
	 
	 	•	 	[***] — [***] and/or [***] with [***] and [***] ([***]) [***]
	 
	 	•	 	[***] — [***] with [***] and [***] ([***]) [***] to [***] for, [***], [***] and [***] in
a [***] at a [***] of [***].

               [***]

The [***] is [***] to [***] the [***]:

	 	•	 	[***] for [***], [***]
	 
	 	•	 	[***] the [***] in a [***].
	 
	 	•	 	[***] for [***], [***]
	 
	 	•	 	[***] for [***] and [***] and/or [***]

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

58

 

	 	•	 	[***] for [***]
	 
	 	•	 	[***] for [***] to [***]
	 
	 	•	 	[***] to [***] the [***] of [***] in a [***]

               
[***]

The [***] contains and is able to [***] the [***]:

	 	•	 	A [***] and [***] ([***] on [***] and [***] at [***] and [***])
	 
	 	•	 	[***] for [***] and [***]
	 
	 	•	 	[***]
	 
	 	•	 	[***] and [***]
	 
	 	•	 	[***] and [***] to [***] as [***], [***], [***], [***].
	 
	 	•	 	[***], [***]

For [***]

	 	•	 	[***] for [***] and [***] in [***].

For [***]

	 	•	 	Complete set of [***] and [***], [***] and [***] and [***] and [***] on the [***].
	 
	 	•	 	[***], [***] for [***] of [***] and [***] on a [***]
	 
	 	•	 	[***], [***] for [***] from [***] and [***]
	 
	 	•	 	[***] that [***] and [***] in [***] with [***] or [***] or [***]

[***]

     [***]

The [***] has a [***] of [***] in [***] and [***] in [***] and [***] to [***] in [***]

     [***]

There is a [***] of [***] in [***] and [***] of [***], [***] and [***] in [***].

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

59

 

     [***]

The [***] is able to [***] from [***] to [***] in [***] and back to [***] in [***]. The [***] is
able to do [***] and [***], [***] the [***] and [***] to [***].

     [***]

The [***] has a [***] of [***] to [***] ([***]).

     [***]

     The [***] has a [***] of [***] with [***] and [***] the [***] has [***] and
[***].

               [***]

     The [***] that [***] be [***] of the [***] in “[***]” of the [***]

     [***].

     [***]

At
[***], [***] of [***] in [***] at [***] will [***] as [***] in the [***].

[***]

	 	 	 	 	 	 	 
	[***] ([***])
	 	[***]
	 	[***]
	 	[***]
	[***]
	 	[***]
	 	[***]
	 	[***]
	[***]
	 	[***]
	 	[***]
	 	[***]
	[***]
	 	[***]
	 	[***]
	 	[***]

     [***]

All singly [***] in the [***] of the [***] of [***] ([***]) will [***] unit [***] without [***] to
[***] or [***] with [***]. This [***] be [***] by [***]
a [***] of [***], [***] to [***] all [***]
of [***], and [***] of [***] at [***] in [***] ([***]).

A [***] will be [***] between the [***] of the [***] at [***] from the [***] of [***] at [***].
[***] shall be [***] when [***] a [***] of [***] of [***] at [***], with [***] adjusted to [***]
of the [***].

     [***]

[***] of [***] at [***], the [***] of [***] ([***] the [***]) of the [***] will be equal to or
greater than the [***] ([***] and [***]) but [***]. [***] shall be [***] at [***] ([***]).

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

60

 

     [***]

[***] of [***] will [***] a [***] ([***]) with a [***] at [***] the [***].

     [***]

The [***] using the [***] in [***] on the [***] to [***] on [***] of [***] through a [***] at a
[***] of [***] ([***] and
[***]), [***] ([***]), [***] ([***] at [***]), [***]
and [***] on ([***]
and [***] fully [***]) will be greater than [***] ([***]) with the [***] less than [***].

The [***] using the [***] in [***] on the [***] to [***] on [***] of [***] through a [***] at a
[***] of [***] ([***] and
[***]), [***] ([***]), [***] ([***] at [***]), [***] and [***] on ([***]
and [***]) will be greater [***] ([***]) with the [***] less than [***].

The [***] using the [***] in [***] on the [***] to [***] on [***] of [***] of a [***] of [***] at a
[***] of [***] ([***] and
[***]), [***] ([***]), [***] ([***] at [***]), [***] and [***], will be
[***] ([***]) with the [***].

The [***] using the [***] in [***] on the [***] to [***] on [***] of [***] ([***]) of [***] at a
[***] of [***] ([***] and [***]), [***] ([***]), [***] ([***] at [***]), [***] and [***], will be
[***]. The [***] will be [***] the [***] of the [***].

[***] — When [***] at a [***] and [***] with [***], the [***] of [***] at [***] from [***] of
the
[***] at [***] is [***] than [***] for [***] and [***] of the [***] of the [***] ([***]). [***] at
a [***] and [***] at [***] with [***], the [***] of the [***] at [***] [***] from [***] of the
[***] at [***] is [***].

     [***]

[***] at [***], the [***] of the [***] (a [***] of the [***]) for a [***] will [***] of the [***]
of [***] ([***]) from the [***].

     [***]

The [***] of [***] ([***]) will be [***] to an [***] of [***] when [***] the [***] in [***].

     [***]

The following [***] will not be [***] during a [***] but [***] be [***] by [***]. These
[***] have [***] the [***]. To [***] these [***], [***] and/or [***], [***] are not [***]
at [***], [***] be [***]. Since these [***] require [***], [***] and [***] be an [***] in
[***] to [***] any of [***] of the [***] and/or at the [***].

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

61

 

     [***] for [***] and [***]

[***] and [***] on [***], [***] are [***] in [***] > [***] ([***]) and in [***]
([***]).

     [***]

The [***] using the [***] in [***] on the [***] to [***] on [***] of a [***] of [***] through a
[***] at a [***] of [***] ([***] and [***]) [***], [***] ([***]) is [***].

     [***]

     [***]

[***] ([***]) and [***] and [***] with a [***]. [***]: [***].

     [***]

[***] and [***] and [***] with a [***]. [***]: [***].

     [***] with [***] in [***]

The [***] in [***] for [***] ([***], [***], [***]) [***] with [***] is [***].

     [***]

     [***] in [***]

The [***] for [***]
([***], [***], [***], [***] and [***]) at [***] on-[***] ([***])
[***] on-[***]
([***]), while [***] a [***] by [***], will be [***].

     [***] in [***]

The [***] for [***] ([***], [***], [***], [***], [***]), [***] has a [***].

     [***] in [***]

The [***] for [***]
([***], [***], [***], [***] and [***]), [***], has a [***].

     [***] in [***]

The [***] for [***] ([***],
[***], [***], [***]), monitoring [***], has a [***].

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

62

 

[***]

     [***]

The [***] is [***] by [***] by [***].

     [***]

The [***], [***] the [***] and the [***].

     [***]

The [***] is [***] by [***] to [***], [***] with [***] are used to [***] the [***].

     [***]

[***] at [***] ([***] of [***]) is [***] for the [***] for the [***]. [***] should be used for the
[***]. [***] is [***] at [***]. [***], [***] ([***]) at [***] is used for the [***] (with a [***]
of [***]).

     [***]

The [***] uses a [***] to [***] and [***] from the [***] and [***].

     [***]

To [***] the [***] for the [***], the [***] should be [***] between [***]
and [***] ([***]) [***]
([***]) with a [***] of [***] and [***]. The [***] should be [***] ([***])
for the [***], [***] and
[***] from the [***].

Patents

The instrument is covered by one or more of the following U.S. Patent Numbers: [***], [***],
[***], [***], [***], [***], [***], [***], [***], [***], [***], [***], [***], [***], [***],
[***], [***], [***], [***] and corresponding claims in patents and patent applications
outside the U.S.A.

Applera) and iTRAQ are trademarks and Applied Biosystems and AB (design) are registered
trademarks of Applera Corporation or its subsidiaries in the US and/or certain other
countries.

Curtain Gas, DuoSpray, MIDAS and Turbo V are trademarks and LINAC, Q TRAP, PhotoSpray,
NanoSpray, MicroIonSpray and TurboIonSpray are registered trademarks of Applied
Biosystems/MDS SCIEX, a joint venture between Applera Corporation and MDS Inc.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

63

 

ICAT is a registered trademark of the University of Washington and is exclusively licensed
to the Applied Biosystems group of Applera Corporation.

Windows is a registered trademark of Microsoft Corporation.

All other trademarks are the property of their respective owners.

© 2006 Applera Corporation and MDS Inc. All Rights Reserved. Information subject to change
without notice.

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

64

 

EXHIBIT E

ABI Principal Contacts

[***] — for ABI Services

[***] — for ABI MS

Portions of this Exhibit were omitted and have been filed separately with the Secretary of the
Commission pursuant to the Company’s application requesting confidential treatment under Rule 406
of the Securities Act.

65

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00149-of-00352.parquet"}]]