Document:

Exhibit 10.1

Exhibit 10.1

SETTLEMENT AGREEMENT AND

INTELLECTUAL PROPERTY PURCHASE AGREEMENT

Effective this 18th day of August, 2010 (the “EFFECTIVE DATE”), EPPENDORF AG, a corporation
organized and existing under the laws of Germany, having its principal office at Barkhausenweg 1,
22339 Hamburg, Germany, and its AFFILIATES (hereinafter “EPPENDORF”) and Nanosphere, Inc., a
corporation organized and existing under the laws of Delaware, having its principal office at 4088
Commercial Ave., Northbrook, Illinois, U.S.A., and its AFFILIATES, (hereinafter, collectively,
“NANOSPHERE”), enter into this Settlement Agreement and Intellectual Property Purchase Agreement
(hereinafter the “Agreement”) and agree as follows:

BACKGROUND

	 	A.	 	WHEREAS EPPENDORF, as a corporation developing, manufacturing and selling
life science instrumentation, consumables and kits, including microarray products,
holds the PATENT RIGHTS, as defined below, including U.S. Patent No. 7,321,829, which
was duly and legally issued on January 22, 2008 (hereinafter the ‘829 patent or the
“patent-in-suit”).

	 
	 	B.	 	WHEREAS, Eppendorf AG, Eppendorf North America, Inc. and Eppendorf Array
Technologies, S.A. filed an ACTION, as defined in Section 1.2 of this Agreement, in
the United States District Court for the District of Delaware;

	 
	 	C.	 	WHEREAS, the parties have determined to resolve and settle all claims and
disputes between them arising out of the ACTION in accordance with the terms and
conditions below, including the purchase of the PATENT RIGHTS by NANOSPHERE;

	 
	 	D.	 	WHEREAS, EPPENDORF represents and warrants that it duly and legally owns the
PATENT RIGHTS and, in order to resolve and settle the disputes between EPPENDORF and
NANOSPHERE relating to the PATENT RIGHTS, has the legal right and desires to sell the
same to NANOSPHERE in accordance with the terms and conditions set forth herein; and

	 
	 	E.	 	WHEREAS, NANOSPHERE, in order to resolve and settle the disputes between it
and EPPENDORF, relating to the PATENT RIGHTS desires to purchase the PATENT RIGHTS in
accordance with the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the recitals set forth above and the promises and covenants
contained in this Agreement, and for good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged by each party, the parties agree as follows:

 

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	1.	 	DEFINITIONS

As used in this Agreement, the following terms shall have the following meanings:

	 	1.1	 	“AFFILIATE” means: Any corporation, company, partnership, joint venture
and/or firm which controls, is controlled by or is under common control with a party
to this Agreement. As used in this Section 1.1, “control” means (a) in the case of
corporate entities, direct or indirect ownership of at least fifty percent (50%) of
the stock or shares having the right to vote for the election of directors, and (b) in
the case of non-corporate entities, direct or indirect ownership of at least fifty
percent (50%) of the equity interest with the power to direct the management policies
of such non-corporate entities.

	 
	 	1.2	 	“ACTION” means Eppendorf AG, et al., v. Nanosphere, Civil Action No.
09-504-MMB, pending in the United States District Court for the District of Delaware.

	 
	 	1.3	 	“BLOCKING PATENTS” means patents or patent applications owned and/or
controlled by EPPENDORF that cover one or more claims of the PATENT RIGHTS and which
cover making, having made, using, having used, importing, offering for sale, selling
or having sold a COVERED VERIGENE SYSTEM® (as defined below) by NANOSPHERE and its
agents, distributors, sublicensees, customers or any third party in lawful possession
of a COVERED VERIGENE SYSTEM®.

	 
	 	1.4	 	“CLONDIAG AGREEMENT” means the Agreement between Eppendorf AG, Eppendorf
Array Technologies S.A., and Eppendorf s.r.l., and Clondiag GmbH, dated on or about
November 11, 2007.

	 
	 	1.5	 	“COVERED VERIGENE SYSTEM” means collectively (i) all processes and
apparatuses of the NANOSPHERE VERIGENE SYSTEM® (as defined below) as have been used as
of the EFFECTIVE DATE for either qualitative and/or quantitative assays of any target,
and (ii) all future processes and apparatuses of the VERIGENE SYSTEM® of which at
least one component is covered by BLOCKING PATENTS for either qualitative and/or
quantitative assays of any target, which processes and apparatuses do not involve
substantial modifications to a process or apparatus included within the VERIGENE
SYSTEM® other than modifications made to permit either qualitative and/or quantitative
assays of a different target than those currently assayed using the VERIGENE SYSTEM.®

	 
	 	1.6	 	“EPPENDORF” means Eppendorf AG and all AFFILIATES, including, without
limitation, Eppendorf North America, Inc. and Eppendorf Array Technologies, S.A.

 

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	 	1.7	 	“EFFECTIVE DATE” means the date of the signature of the last party to sign
this Agreement.

	 
	 	1.8	 	“EXISTING LICENSE AGREEMENTS” means the Clondiag Agreement and the GenTel
Agreement.

	 
	 	1.9	 	“GENTEL AGREEMENT” means the License and Supply Agreement between GenTel
BioSciences, Inc., and Eppendorf, AG, dated May 20, 2008.

	 
	 	1.10	 	“NANOSPHERE” means Nanosphere, Inc., and all AFFILIATES.

	 
	 	1.11	 	“PATENT RIGHTS” means: (i) U.S. Patent No. 7,321,829 and (ii) EP 1 179 180,
together with (iii) any patent or patent application that is a divisional,
continuation, continuation in part, reissue, renewal, reexamination, substitution,
extension or foreign counterpart of the patents identified in (i) and (ii). Exhibit 2
to this Agreement is believed to be a complete list of the PATENT RIGHTS.

	 
	 	1.12	 	The “TERM” of this Agreement shall run from the EFFECTIVE DATE through the
last to expire of the PATENT RIGHTS, unless sooner terminated in accordance with
Section 5.2 of this Agreement.

	 
	 	1.13	 	“VERIGENE® SYSTEM” means the Verigene® Reader, Verigene® Processor SP,
Verigene® Processor and any and all test cartridges, sold by or for NANOSPHERE for use
with the Verigene® Reader, Processor or Processor SP. The VERIGENE® SYSTEM also
includes the processes employed in order to perform the qualitative and/or
quantitative assays performed by the foregoing apparatuses.

	2.	 	TRANSFER OF INTELLECTUAL PROPERTY

	 	2.1.	 	Agreement to Assign. Upon receipt of the Payment in accordance with Article
3 of this Agreement, EPPENDORF hereby agrees to assign, and hereby does assign, to
NANOSPHERE, and NANOSPHERE hereby agrees to accept, all of EPPENDORF’S right, title
and ownership in and to the PATENT RIGHTS.

	 
	 	2.2.	 	Assignment Document. EPPENDORF shall execute an Assignment, in substantially
the same form as shall be agreed upon by the Parties within five (5) business days of
the EFFECTIVE DATE, which shall be attached hereto as Exhibit 1, within five (5)
business days of receiving the Payment in accordance with the terms and conditions of
Article 3 of this Agreement.

 

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	 	2.3.	 	Recordation. NANOSPHERE will prepare the Assignment and assumes all
responsibility and costs for recording this assignment of the PATENT RIGHTS in any and
all domestic or foreign patent offices and elsewhere
throughout the world, as applicable. After the EFFECTIVE DATE, upon the request of
NANOSPHERE, EPPENDORF will use reasonable efforts to cooperate with NANOSPHERE to
execute and deliver further conveyance instruments as may be necessary or requested
by domestic or foreign patent offices to evidence more fully the transfer of
ownership of all the PATENT RIGHTS to NANOSPHERE.

	 
	 	2.4.	 	Grant Back License for Sales through March 31, 2011. NANOSPHERE, on behalf
of itself and its AFFILIATES, grants to EPPENDORF and its AFFILIATES, a non-exclusive,
non-assignable and non-transferable, non-sublicensable, irrevocable, worldwide, fully
paid-up and royalty-free license under the PATENT RIGHTS up to and including March 31,
2011, for making, having made, selling, offering to sell and using, the Silverquant
kits and reagents to customers and/or end users existing as of the EFFECTIVE DATE
until March 31, 2011.

	 
	 	2.5.	 	Grant Back License For GENTEL AGREEMENT.

	 	2.5.1.	 	NANOSPHERE acknowledges that it has received a copy of the GENTEL AGREEMENT.

	 
	 	2.5.2.	 	Consistent with the acknowledgement in Section 2.5.1 of this Agreement,
NANOSPHERE, on behalf of itself and its AFFILIATES, grants to EPPENDORF a
non-exclusive, non-assignable and non-transferable, non-sublicensable,
perpetual (both prospective and retro-active), irrevocable, worldwide, fully
paid-up and royalty-free license under the PATENT RIGHTS for the TERM of the
Agreement, said license being commensurate in scope with EPPENDORF’s rights
and obligations limited to the PATENT RIGHTS under the GENTEL AGREEMENT, said
license intended solely for the limited purpose of permitting EPPENDORF to
fulfill EPPENDORF’s obligations related to the PATENT RIGHTS under the GENTEL
AGREEMENT, such that the licenses and rights granted under the PATENT RIGHTS
by the GENTEL AGREEMENT shall not be disturbed, abrogated or otherwise
lessened and are limited in duration so long as the GENTEL AGREEMENT is in
full force and effect. No other rights are granted.

	 
	 	2.5.3.	 	EPPENDORF shall fully cooperate with NANOSPHERE, at NANOSPHERE’s expense,
provided that such expenses are commercially reasonable, (i) in the collection
of all royalties and payments due under the GENTEL AGREEMENT and EPPENDORF
agrees to transfer all reports, royalties and payments collected under the
GENTEL AGREEMENT to NANOSPHERE within 30 days of receipt of such items, and
(ii) in notifying NANOSPHERE of any change in status of the GENTEL
AGREEMENT, including but not limited to any amendments, the granting of
any sublicenses pursuant to section 2.2 and/or the exercise of GenTel’s
right to enter the Diagnostic Field pursuant to sections 2.1 and 3.2 of
the GENTEL AGREEMENT within 30 days of such notice from GenTel.

 

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	 	2.5.4.	 	EPPENDORF, as of the EFFECTIVE DATE, affirms that, to its knowledge, GenTel
(i) has not granted any sublicenses in accordance with section 2.2 of the
GENTEL AGREEMENT and (ii) has not exercised its rights to enter the Diagnostic
Field in accordance with sections 2.1 and 3.2 of the GENTEL AGREEMENT.

	 
	 	2.5.5.	 	EPPENDORF represents, warrants and covenants not to amend, assign, or permit
assignment of the GENTEL AGREEMENT without the written consent of NANOSPHERE,
which consent shall not be unreasonably withheld.

	 
	 	2.5.6.	 	Consistent with section 7.6 of the GENTEL AGREEMENT, NANOSPHERE shall pay
the maintenance fees due and owing to maintain the PATENT RIGHTS in the United
States in full force and effect or provide EPPENDORF with at least thirty (30)
days notice to pay the maintenance fees in the United States whereupon such
maintenance fees shall be deducted from any monies owed by GENTEL under the
GENTEL AGREEMENT and transferred to NANOSPHERE pursuant to section 2.5.3 of
this Agreement.

	 	2.6.	 	The parties agree that nothing herein prevents EPPENDORF from making, having
made, using or selling any of its products, such as, for example, the Silverquant
Reagents, buffers or blocking agents, provided that said products are not knowingly
sold for a use that would fall within the scope of the PATENT RIGHTS.

	 
	 	2.7.	 	CLONDIAG AGREEMENT.

	 	2.7.1.	 	Nanosphere acknowledges that pursuant to the Court’s Order entered August 9,
2010, two persons within its employ have received and reviewed a copy of the
CLONDIAG AGREEMENT.

	 
	 	2.7.2.	 	NANOSPHERE, on behalf of itself and its AFFILIATES, grants to EPPENDORF a
non-exclusive, non-assignable and non-transferable, non-sublicensable,
perpetual (both prospective and retro-active), irrevocable, worldwide, fully
paid-up and royalty-free license under the PATENT RIGHTS for the TERM of the
Agreement, said license being commensurate in scope with EPPENDORF’s rights
and obligations limited to the PATENT RIGHTS under the CLONDIAG AGREEMENT,
said license
intended solely for the limited purpose of permitting EPPENDORF to fulfill
EPPENDORF’s obligations related to the PATENT RIGHTS under the CLONDIAG
AGREEMENT, such that the licenses and rights granted under the PATENT
RIGHTS by the CLONDIAG AGREEMENT shall not be disturbed, abrogated or
otherwise lessened and are limited in duration so long as the CLONDIAG
AGREEMENT is in full force and effect. No other rights are granted

 

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	 	2.7.3.	 	EPPENDORF will fully cooperate with NANOSPHERE, at NANOSPHERE’S expense,
provided that such expenses are commercially reasonable, in the collection of
all royalties and payments due under the CLONDIAG AGREEMENTS and EPPENDORF
agrees to transfer all reports, royalties and payments collected under the
CLONDIAG AGREEMENT to NANOSPHERE within 30 days of receipt of such items.

	 
	 	2.7.4.	 	EPPENDORF represents, warrants and covenants not to amend or assign the
CLONDIAG AGREEMENT, and not to permit assignment, where EPPENDORF’S consent to
assign the CLONDIAG AGREEMENT is required by the CLONDIAG AGREEMENT, of the
CLONDIAG AGREEMENT without the written consent of NANOSPHERE, which consent
shall not be unreasonably withheld.

	3.	 	PAYMENT/RELEASES

	 	3.1	 	One Time Payment. In consideration for the rights granted hereunder,
including the transfer and sale of the PATENT RIGHTS to NANOSPHERE and the settlement
of the ACTION, NANOSPHERE agrees to pay to EPPENDORF, within five (5) business days of
the EFFECTIVE DATE, a net one-time, lump sum of four million U.S. Dollars ($4,000,000)
(hereinafter “Payment”), sent and received in accordance with Section 3.2 of this
Agreement.

	 
	 	3.2	 	Method of Payment. NANOSPHERE shall make the Payment by wire transfer in
accordance with the following instructions:

	 	Bank:	 	 Deutsche Bank AG

	 	BIC Code:	 	DEUTDEHHXXX

	 	IBAN:	 	DE 512007 0000 002022 0000

	 	3.3	 	Payment Final. The parties agree that all payments made pursuant to this
Agreement, and all payments that are due and owing, but yet to be paid, pursuant to
this Agreement, shall be, and are, final and non-refundable, regardless of whether any
and all of the claims of the PATENT RIGHTS either expire, lapse or will be declared
invalid or unenforceable.
NANOSPHERE waives any and all rights and defenses to challenge or defend against
EPPENDORF’S right to receive the payments due and owing pursuant to this Agreement
for any reason, including, without limitation, any contention that the PATENT
RIGHTS have either expired, lapsed, are invalid, are unenforceable, or are not
infringed.

 

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	 	3.4	 	Late Fee. In the event that NANOSPHERE fails to timely pay EPPENDORF in
accordance with this Agreement, NANOSPHERE agrees to pay interest, calculated from the
date such payment is due until such amount is paid in full, at the higher of either
(i) the rate of one and one-half percent (1 1/2 %) per month; or (ii) the maximum amount
allowable by law.

	 
	 	3.5	 	Taxes. The parties agree that each party shall bear and pay their respective
taxes (including, without limitation, sales and value added taxes) imposed by any
national or state government (including any political subdivision thereof) of any
country in which that party is doing business.

	 
	 	3.6	 	Release. Subject to the timely receipt by EPPENDORF of the Payment made by
NANOSPHERE in accordance with Sections 3.1 and 3.2 hereof and the execution of the
Assignment by EPPENDORF in accordance with Sections 2.1 and 2.2, each party hereby
releases and forever discharges the other party, such party’s past and future
AFFILIATES, such party’s directors and officers, successors and assigns, and such
party’s customers, end users, licensees, distributors, subcontractors, attorneys and
other representatives, from any and all claims demands, obligations, losses, causes of
action, damages, penalties, costs, expenses, attorneys’ fees, liabilities and
indemnities of any nature, worldwide, whether based on contract, tort, statute or
other legal or equitable theory of recovery, whether known or unknown, direct or
indirect, absolute, accrued, contingent or otherwise, which, as of the EFFECTIVE DATE,
each party had, now has, claims to have, or may hereafter have, arising out of
anything occurring prior to the EFFECTIVE DATE of this Agreement.

	 
	 	3.7	 	COVENANT NOT TO SUE FOR BLOCKING PATENTS. In addition, EPPENDORF hereby
covenants not to sue, for the TERM of the Agreement, for making, having made, using,
having used, importing, offering for sale, selling or having sold a COVERED VERIGENE
SYSTEM®, NANOSPHERE and its agents, distributors, sublicensees, customers or any third
party in lawful possession of a COVERED VERIGENE SYSTEM®. This covenant is not
assignable or transferable by NANOSPHERE to any third party, except in the event of a
change of control, the sale or transfer of substantially the entire business of
NANOSPHERE relating to the COVERED VERIGENE SYSTEM®.

 

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	4.	 	PATENT PROSECUTION 

	 	4.1	 	As of the EFFECTIVE DATE, NANOSPHERE shall control the preparation, filing,
prosecution and maintenance (including without limitation conducting or participating
in interferences or oppositions), at its own expense, of any and all patents and any
patents claiming or covering any inventions that are subject matter of the PATENT
RIGHTS.

	 
	 	4.2	 	No Responsibility. EPPENDORF shall have no responsibility for any action or
proceeding relating to any of the PATENT RIGHTS which is commenced on or after the
EFFECTIVE DATE. However, for any applications or proceedings relating to the PATENT
RIGHTS pending as of the EFFECTIVE DATE, EPPENDORF agrees to use all reasonable
efforts to cooperate with NANOSPHERE in prosecuting such pending applications or
proceedings, or transferring the prosecution files of the PATENT RIGHTS, at the
expense of NANOSPHERE, provided such expenses are commercially reasonable. Such
cooperation includes signing lawful papers, providing documents and information
relating to conception, reduction to practice, inventorship of any inventions
disclosed in the PATENT RIGHTS, and other such information as may reasonably be
requested by NANOSPHERE and lawfully provided by EPPENDORF, and performing other
lawful acts which NANOSPHERE may request to further the prosecution of any of such
PATENT RIGHTS (including any divisional, continuation, reissue, renewal,
reexamination, substitution or extensions of any application and patent within the
PATENT RIGHTS) or proceedings.

	 
	 	4.3	 	Status. Solely for informational purposes, EPPENDORF provides to NANOSPHERE
a list of the individual patents and applications that comprise the PATENT RIGHTS,
attached hereto as Exhibit 2. EPPENDORF does not warrant the accuracy of the
information contained in Exhibit 2. The parties agree to cooperate and take all
reasonable steps to assign and/or add any patent and/or application inadvertently
omitted from Exhibit 2.

	 
	 	4.4	 	Any restrictions in the STIPULATED PROTECTIVE ORDER signed by Judge Baylson
on January 21, 2010 in the ACTION pertaining to prosecution of any patent application
or any other practice before any patent office by any attorney for the parties who
received any Protected Materials designated under the STIPULATED PROTECTIVE ORDER are
as of the EFFECTIVE DATE removed and rendered null and void.

	5.	 	TERM AND TERMINATION OF AGREEMENT

	 	5.1	 	The Term of this Agreement shall run from the EFFECTIVE DATE through the last
to expire of the PATENT RIGHTS, unless sooner terminated in accordance with Section
5.2 of this Agreement.

 

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	 	5.2	 	EPPENDORF may terminate this Agreement as follows:

	 
	 	 	 	If NANOSPHERE does not make a payment due hereunder and fails to
cure such non-payment within thirty (30) days after the date of notice in
writing of such non-payment by EPPENDORF.

	 
	 	5.3	 	Sections 5.2, 6.1, 6.2, 6.3, 6.4, and Articles 3, 7, 8, 9 and 10 of this
Agreement shall survive termination.

	6.	 	WARRANTIES/RESPONSIBILITIES

	 	6.1	 	EPPENDORF does not warrant the validity of the PATENT RIGHTS and makes no
representation whatsoever with regard to the scope of the PATENT RIGHTS or that such
PATENT RIGHTS may be exploited by NANOSPHERE without infringing other patents.

	 
	 	6.2	 	EPPENDORF EXPRESSLY DISCLAIMS ANY AND ALL IMPLIED OR EXPRESS WARRANTIES AND
MAKES NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY
PARTICULAR PURPOSE OF THE PATENT RIGHTS OR INFORMATION SUPPLIED BY EPPENDORF.

	 
	 	6.3	 	Title. EPPENDORF represents, warrants and covenants that, subject to the
EXISTING LICENSE AGREEMENTS, it exclusively owns all right, title, and interest in and
to the PATENT RIGHTS, and that all right title and interest is free and clear of any
liens or security interests.

	 
	 	6.4	 	No Other Licenses. EPPENDORF represents, warrants and covenants that other
than the EXISTING LICENSE AGREEMENTS, no other license agreements relate to, encumber
or in any way grant any rights, title and/or interest to the PATENT RIGHTS.

	 
	 	6.5	 	Patent Office Proceedings. EPPENDORF represents and warrants that, to the
best of EPPENDORF’s knowledge as of the EFFECTIVE DATE, that none of the PATENT RIGHTS
are currently involved in any reexamination, reissue, opposition or interference
proceeding, excepting EPPENDORF is aware that NANOSPHERE copied the claims of the ‘829
patent in NANOSPHERE’S U.S. Patent Publication Number US2009/0325812.

	 
	 	6.6	 	Good Standing. Each party represents and warrants that it is a corporation
in good standing; that it has the authority to enter into this Agreement; and that
this Agreement is valid, binding and enforceable in accordance with its terms.

	 
	 	6.7	 	Signatory. Each signatory below to this Agreement warrants that he/she is
the authorized agent of the respective party; and that he/she has the authority to
enter into the Agreement and to bind the party thereto.

 

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	 	6.8	 	Other Intellectual Property: Nothing in this Agreement shall be construed as
conferring a right to use in advertising, publicity, or otherwise any trademark or
trade name of the other party; or granting by implication, estoppel, or otherwise any
licenses or rights under patents or other intellectual property, other than the PATENT
RIGHTS.

	 
	 	6.9	 	Dismissal of the ACTION. Within five (5) business days of receipt of the
Payment of Article 3, NANOSPHERE and EPPENDORF shall file a Stipulation of Dismissal,
with prejudice, of the ACTION, in the United States District Court for the District of
Delaware in substantially the same form as Exhibit 3. Each party shall bear its own
costs and fees related to the ACTION. The parties agree to stay, and to take such
measures required in order to stay, all proceedings in the ACTION until the case is
actually dismissed by the Court based on the foregoing Stipulation of Dismissal.

	 
	 	6.10	 	Withdrawal of European Ban. EPPENDORF agrees to take reasonable steps to
remove the importation ban on NANOSPHERE’S VERIGENE® SYSTEM within thirty (30) days of
the receipt of Payment under Article 3 of the Agreement.

	 
	 	6.11	 	Return of Protected Materials. Following the entry of the Court of the
Stipulation of Dismissal of the ACTION, the parties agree to destroy all confidential
and highly confidential information of the other party in accordance with the
Stipulated Protective Order entered by the Court in the ACTION. Notwithstanding
anything herein to the contrary, counsel for each party shall be permitted to retain
one copy of the pleadings in the ACTION for their records, and NANOSPHERE shall be
permitted to retain and use as necessary all information relating to the conception,
reduction to practice and/or inventorship of the PATENT RIGHTS, as well as all
information which in NANOSPHERE’S discretion may be reasonably useful in, and/or
required to be submitted to a patent office in connection with, the prosecution of any
of the PATENT RIGHTS or the prosecution of any of NANOSPHERE patent application(s) or
patent(s). NANOSPHERE’S counsel shall be responsible for providing NANOSPHERE with
the information to which NANOSPHERE is entitled under this Section of the Agreement
which is covered by the Stipulated Protective Order entered by the Court in the
ACTION.

	 
	 	6.12	 	EPPENDORF will not directly or indirectly aid, assist, encourage, or
participate in any action contesting the patentability, validity, or enforceability of
any of the PATENT RIGHTS in any jurisdiction.

 

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	7.	 	INDEMNIFICATION

	 	7.1	 	NANOSPHERE shall indemnify, defend and hold harmless EPPENDORF and its
current or former directors, board members, attorneys and
employees, and their respective successors, heirs and assigns (collectively, the
“EPPENDORF INDEMNITEES”) from and against any claim, liability, cost, expense,
damage, deficiency, loss or obligation or any kind or nature (including, without
limitation, reasonable attorneys’ fees and other costs and expenses of litigation)
(collectively, “Claims”), based upon or arising out of or otherwise relating
NANOSPHERE’S conduct in this ACTION or this Agreement, including without limitation
any cause of action relating to product liability concerning any product, process,
or service made, used or sold pursuant to any right or license granted under this
Agreement. However, NANOSPHERE shall not be required to indemnify EPPENDORF as a
result of any claim or action related to EPPENDORF’S transfer of the PATENT RIGHTS,
including but not limited to, any claim or action related to a breach and/or an
alleged breach of the EXISTING LICENSE AGREEMENTS.

	 
	 	7.2	 	IN NO EVENT SHALL EPPENDORF BE LIABLE FOR ANY INDIRECT, SPECIAL, INCIDENTAL
OR CONSEQUENTIAL DAMAGES (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOSS OF PROFITS
OR EXPECTED SAVINGS OR OTHER ECONOMIC LOSSES, OR FOR INJURY TO PERSONS OR PROPERTY)
ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT OR ITS SUBJECT MATTER, REGARDLESS
OF WHETHER EPPENDORF KNOWS OR SHOULD KNOW OF THE POSSIBILITY OF SUCH DAMAGES. EITHER
PARTY’S AGGREGATE LIABILITY FOR ALL DAMAGES OF ANY KIND RELATING TO THIS AGREEMENT OR
ITS SUBJECT MATTER SHALL NOT EXCEED THE AMOUNT PAID BY NANOSPHERE TO EPPENDORF UNDER
THIS AGREEMENT. The foregoing exclusions and limitations shall apply to all claims
and actions of any kind, whether based on contract, tort (including but not limited to
negligence), or any other grounds.

	 
	 	7.3	 	NANOSPHERE shall, at its own expense, provide attorneys reasonably acceptable
to EPPENDORF to defend against any actions brought or filed against any EPPENDORF
INDEMNITEE hereunder with respect to the subject of indemnity contained herein,
whether or not such actions are rightfully brought. EPPENDORF shall, at its own
expense, provide attorneys reasonably acceptable to NANOSPHERE to defend against any
actions brought or filed against any NANOSPHERE INDEMNITEE hereunder with respect to
the subject of indemnity contained herein, whether or not such actions are rightfully
brought. The obligations in this Section 7.3 are understood and acknowledged by the
parties to be limited to reasonable attorneys’ fees.

 

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	 	7.4	 	EPPENDORF shall indemnify, defend and hold harmless NANOSPHERE and its
current or former directors, board members, attorneys and employees, and their
respective successors, heirs and assigns (collectively
the “NANOSPHERE INDEMNITEES”) from and against any claim, liability, cost, expense,
damage, deficiency, loss or obligation or any kind or nature (including, without
limitation, reasonable attorneys’ fees and other costs and expenses of litigation)
(collectively, “Claims”), based upon or arising out of or otherwise relating to
EPPENDORF’S conduct in this ACTION or this Agreement, including without limitation
all claims or actions relating to the assignment of the PATENT RIGHTS to
NANOSPHERE.

	8.	 	USE OF NAMES AND PRODUCT LABELING

Neither party shall use the other party’s name or insignia, or any adaptation of them, or the
name of any of the other party’s employees in any advertising, promotional or sales literature,
including without limitation press releases, without prior written consent.

	9.	 	NOTICES

Any notices to be given hereunder shall be sufficient if signed by the party (or party’s
attorney) giving same and either

(a) Delivered in person,

(b) Mailed certified mail return receipt requested,

(c) Made by overnight delivery, or

(d) Faxed to other party if the sender has evidence of successful transmission
and if the sender promptly sends the original by ordinary mail, in any
event to the following addresses:

If to NANOSPHERE:

NANOSPHERE

4088 Commercial Avenue

Northbrook, IL 60062-1829

Attn.: William Moffitt, CEO

Facsimile: 847.400.9199 

If to EPPENDORF:

Eppendorf AG

Exec. VP of Corporate Development

Sven Buelow

Barkhausenweg 1

22339 Hamburg

Germany

Facsimile: +49 40 53801-140

By such notice either party may change their address for future notices.

 

12

 

Notices delivered in person shall be deemed given on the date delivered. Notices mailed shall
be deemed given on the date postmarked on the envelope. Notices sent by overnight carrier shall be
deemed given on the date received by such carrier, as indicated on the shipping manifest or
waybill. Notices sent by fax shall be deemed given on the date faxed.

	10.	 	MISCELLANEOUS

	 	10.1	 	Controlling Law. The interpretation and application of the provisions of
this Agreement shall be governed by the laws of the State of Delaware, irrespective of
is choice of law provisions.

	 
	 	10.2	 	Jurisdiction. For purposes of enforcing this Agreement, the parties hereby
submit to the jurisdiction of, and waive any venue objections against, the United
States District Court for the District of Delaware, which shall retain jurisdiction
with respect to enforcing this Agreement.

	 
	 	10.3	 	Confidentiality of Terms.

	 	10.3.1	 	Within five (5) business days of the EFFECTIVE DATE, the parties agree to issue
a joint press release regarding the settlement of the ACTION, in substantially
the same form as will be attached hereto as Exhibit 4. Unless otherwise
specifically excepted herein, for a period of three (3) years from the EFFECTIVE
DATE of this Agreement, neither party may issue press releases or otherwise make
public, the terms of this Agreement without the prior written approval of the
other party.

	 
	 	10.3.2	 	Notwithstanding the foregoing, each party may disclose the existence and the
terms of this Agreement as is reasonably necessary for purposes of providing
information in the ordinary course of doing business, such as, for example, to
investors, potential investors, business partners, customers and potential
customers, in seeking financing, bank credit or the like, or as required under
the law or statute, rule or regulation, including the rules and regulations of
the Securities and Exchange Commission or such other government regulatory
entity.

	 	10.4	 	Independent Legal Advice. The parties acknowledge that they have been
advised or had the opportunity to be advised by their own independently selected
counsel and other advisors in connection with this Agreement and enter into this
Agreement solely on the basis of that advice and on the basis of their own independent
investigation of all of the facts, laws and circumstances material to this Agreement
or any provision thereof, and not in any manner or to any degree based upon any
statement or omission by the other party and/or its counsel.

 

13

 

	 	10.5	 	Construction. Each party has cooperated in the drafting and preparation of
this Agreement. Hence, this Agreement shall not be construed against any party on the
basis that that party was the drafter. The headings are for the convenience of the
parties and are not to be used in construing the meaning of any provision of this
Agreement.

	 
	 	10.6	 	Waiver. Failure by either party to enforce any rights under this Agreement
shall not be construed as a waiver of such rights; nor shall a waiver by either party
in one or more instances be construed as constituting a continuing waiver or as a
waiver in other instances.

	 
	 	10.7	 	Relationship of the Parties. Nothing in this Agreement or any attachments
hereto shall be deemed or construed to constitute or create between the parties hereto
a partnership, joint venture, agency, or any other relationship between the parties.

	 
	 	10.8	 	Assignment of Agreement. Subject to the restrictions herein, either party may
assign this Agreement, provided, however, that such assignee agrees to be bound by the
terms and conditions set forth herein as if an original party hereto. This Agreement
shall be binding upon, and inure to the benefit of the successors, legal
representatives and permitted assignees of EPPENDORF and NANOSPHERE.

	 
	 	10.9	 	Assignment of PATENT RIGHTS. NANOSPHERE agrees that any assignment by
NANOSPHERE of some or all of the PATENT RIGHTS shall be made subject to this Agreement
as well as the EXISTING LICENSE AGREEMENTS. In addition, EPPENDORF consents to
disclosure of the EXISTING LICENSE AGREEMENTS on its own behalf and agrees to
cooperate if NANOSPHERE requests any third party consents for disclosure.

	 
	 	10.10	 	Export Controls. NANOSPHERE shall comply with all applicable laws and
regulations. In particular, it is understood and acknowledged that the transfer of
certain commodities and technical data is subject to United States laws and
regulations controlling the export of such commodities and technical data, including
all Export Administration Regulations of the United States Department of Commerce.
These laws and regulations among other things, prohibit or require a license for the
export of certain types of technical data to certain specified countries. By signing
this Agreement, NANOSPHERE hereby agrees and gives written assurance that it will
comply with all United States laws and regulations controlling the export of
commodities and technical data, that it will be solely responsible for any violation
of such by NANOSPHERE, and that it will defend and hold EPPENDORF harmless in the
event of any legal action of any nature occasioned by such violation.

 

14

 

	 	10.11	 	Severability. Should a court of competent jurisdiction hold any provision
of this Agreement to be invalid, illegal, or unenforceable, and such holding is not
appealed or not reversed on appeal, it shall be considered severed from this
Agreement. All other provisions, rights and obligations shall continue without regard
to the severed provision, provided that the remaining provisions of this Agreement are
in accordance with the intention of the parties.

	 
	 	10.12	 	Entire Understanding. This Agreement constitutes the entire understanding
between the parties and neither party shall be obligated by any condition or
representation other than those expressly stated herein or as may be subsequently
agreed to by the parties hereto in writing.

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

REMAINDER OF PAGE INTENTIONALLY BLANK

 

15

 

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

	 	 	 	 	 	 	 
	EPPENDORF AG

	 	 
	 	NANOSPHERE, INC.
	 	 
	 
	 	 	 	 	 	 
	/s/ Heinz Gerhard Koehn

	 	 	 	/s/ William P. Moffitt	 	 
	 

	 	 	 	 	 	 
	Name: Heinz Gerhard Koehn

	 	 	 	Name: William P. Moffitt	 	 
	Title: Board Member Technology

	 	 	 	Title: CEO	 	 
	 
	 	 	 	 	 	 
	August 18, 2010

	 	 	 	August 17, 2010	 	 
	 

	 	 	 	 	 	 
	Date

	 	 	 	Date	 	 
	 
	 	 	 	 	 	 
	/s/ Michael Schroeder

	 	 	 	/s/ Roger Moody	 	 
	 

	 	 	 	 	 	 
	Name: Michael Schroeder

	 	 	 	Name: Roger Moody	 	 
	Title: Board Member Marketing & Sales

	 	 	 	Title: CFO	 	 
	 
	 	 	 	 	 	 
	August 18, 2010

	 	 	 	August 17, 2010	 	 
	 

	 	 	 	 	 	 
	Date

	 	 	 	Date	 	 

 

16Exhibit 10.1

EXHIBIT 10.1

August 13, 2010

Irvine Sensors Corporation 

3001
Red Hill Avenue 

Costa Mesa, CA 92626 

Attn: John J. Stuart, Jr. 

Fax No.: (714) 444-8773

Gentlemen:

Reference is made to (i) that
certain Subscription Agreement (the “Subscription Agreement”) dated as of
December 29, 2006 by and between Irvine Sensors Corporation, a Delaware corporation (the
“Company”), and Longview Fund, L.P. (“Longview”) and Alpha
Capital Anstalt (“Alpha”); (ii) that certain Term Loan and Security Agreement dated
as of December 29, 2006 by and between the Company and Longview and Alpha (the “Term Loan
Agreement”); (iii) that certain Secured Promissory Note dated as of July 19, 2007 issued
by the Company to Longview (the “Secured Promissory Note”); (iv) that certain Loan
Agreement dated as of July 19, 2007 by and between the Company and Longview (the “Loan
Agreement”); (v) those certain Class A Warrants dated as of December 29, 2006 issued
by the Company to Longview and Alpha (collectively, the “Class A Warrants”);
(vi) that certain Class B Warrant dated as of August 15, 2007 issued by the Company to Longview
(the “Class B Warrant”); (vii) that certain Subscription Agreement
(Series A-1 — Debt Exchange) dated as of April 14, 2008 by and between the Company and Longview
(the “A-1 Debt Exchange Agreement”); (viii) that certain Certificate of
Designations of Rights, Preferences, Privileges and Limitations of Series A-1 10% Cumulative Convertible
Preferred Stock of the Company as filed with the Delaware Secretary of State on April 14, 2008 (the
“A-1 Certificate”); (ix) that certain Subscription Agreement (Series A-2
— Debt Exchange) dated as of March 18, 2009 by and between the Company and Longview (the
“A-2 Debt Exchange Agreement”); (x) that certain Certificate of Designations of
Rights, Preferences, Privileges and Limitations of Series A-2 10% Cumulative Convertible Preferred Stock of
the Company as filed with the Delaware Secretary of State on March 24, 2009 (the “A-2
Certificate”); and (xi) and that certain Contingent Secured Promissory Notes (Buyout) dated as
of November 28, 2007 (the “Contingent Note”).

Each of the undersigned, to the extent
applicable, hereby (i) consents to the delisting of the Company’s Common Stock from the Nasdaq Capital
Market (the “NCM”) and the Company’s failure to maintain the listing or quotation of its Common
Stock on the American Stock Exchange, NCM, Nasdaq Global Market, Nasdaq Global Select Market, or New York Stock
Exchange; (ii) agrees that such delisting and failure do not constitute a breach, default, event of default,
cross-default or other acceleration event, or a “Change in Control” under the Subscription Agreement,
Term Loan Agreement, Secured Promissory Note, Loan Agreement, Class A Warrants, Class B Warrant, A-1
Debt Exchange Agreement, A-1 Certificate, A-2 Debt Exchange Agreement, A-2 Certificate, Contingent Note or any
other agreements or instruments between the Company and Longview or Alpha; and (iii) waives, to the extent
applicable, any remedies with respect to such delisting and failure.

This waiver shall remain valid only if
(i) the Company’s Common Stock becomes quoted on the OTC Bulletin Board within thirty (30) days
after being delisted from the NCM; (ii) the Company elects to allow its Common Stock to be delisted from the
NCM in lieu of consummating the reverse stock split approved by its stockholders at the Annual Meeting of
Stockholders on July 28, 2010; and (iii) the delisting of the Company’s Common Stock from the NCM
and the Company’s failure to maintain the listing or quotation of its Common Stock on the American Stock
Exchange, NCM, Nasdaq Global Market, Nasdaq Global Select Market, or New York Stock Exchange does not constitute a
material breach, reset or the triggering of any rights, default, event of default, cross-default or other
acceleration event under any material loan, security agreement, subscription agreement, securities purchase
agreement, Certificate of Incorporation, Certificate of Designations or any other material agreement to which the
Company or its securities are subject (other than an agreement with Longview or Alpha).

[Signature Page Follows]

 

4

 

Sincerely,

LONGVIEW FUND, LP

	 	 	 
	By: 
	/s/ S. Michael Rudolph	 
	
 

	 	 
	 
	Name: S. Michael Rudolph 

Title: CFO – Viking Asset Management, LLC	 

	 	 	ALPHA CAPITAL ANSTALT	 

	 	 	 
	By: 
	/s/ Konrad Ackermann	 
	 	 	 

	 
	Name: Konrad Ackermann

Title: Director	 
	 
	cc:	Dorsey & Whitney LLP 

38 Technology Drive, Suite 100 

Irvine, CA 92618 

Attn: Ellen Bancroft, Esq. 

Fax No.: (949) 932-3601	 

 

5

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