Document:

EX-10.7

Exhibit 10.7 to the Registration Statement

EXECUTION

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

LICENSE AND OPTION AGREEMENT

     THIS LICENSE AND OPTION AGREEMENT (the “Agreement”) is dated as of the 28th day of December,
1998 (the “Effective Date”), by and between MOTOROLA, INC., a Delaware corporation having an office
at 4088 Commercial Drive, Northbrook, Illinois 60062 (hereinafter, together with its SUBSIDIARIES,
“MOTOROLA”), and GENOMETRIX INCORPORATED, a Delaware corporation having its offices at 3608
Research Forest Drive, Suite B7, The Woodlands, Texas 77381
(“GENOMETRIX ”).

     WHEREAS, GENOMETRIX owns, controls or has acquired rights under various patents and
applications for patents pending, in various countries of the world, referred to herein as the
E-FIELD MANIPULATION IP, SURFACE CHEMISTRIES IP, and UNIVERSAL ARRAY IP (each as defined below);
and

     WHEREAS, MOTOROLA and GENOMETRIX have agreed to an equity arrangement as set forth in the
STOCK PURCHASE AGREEMENT (as defined below) executed concurrently with this Agreement; and

     WHEREAS, GENOMETRIX is willing to grant MOTOROLA, and MOTOROLA desires to acquire from
GENOMETRIX , the licenses and license options as provided herein.

     NOW, THEREFORE, the parties agree as follows:

SECTION
1. DEFINITIONS

     Capitalized terms used herein shall have the definitions assigned to them in this Section 1,
and shall include the singular as well as the plural.

     1.1. E-FIELD MANIPULATION IP means GENOMETRIX INTELLECTUAL PROPERTY used for the research,
development, manufacture or use of COMPLEMENTARY PRODUCTS and pertaining to the use of an electric
field property, including electrical properties and electrochemical properties, to: (a) identify
molecular structures within a sample substance applied to one or more test sites, (b) accelerate or
enhance the rate at which interaction mechanisms, such as hybridization, occur between molecules at
one or more test sites, and (c) increase the specificity and/or selectivity of the interaction
between two or more molecular structures. E-FIELD MANIPULATION IP shall exclude: (x) the use of an
electric field property to synthesize and/or deposit molecular structures onto an array to form
test sites, and (y) optical, radioisotope, chemiluminescent and thermal detection methods and
technology. By way of example, Exhibit D hereof sets forth representative claims of certain
existing GENOMETRIX PATENTS which meet the criteria for E-FIELD MANIPULATION IP.

     1.2. SURFACE CHEMISTRIES IP means GENOMETRIX INTELLECTUAL PROPERTY used for the research,
development, manufacture or use of COMPLEMENTARY PRODUCTS and pertaining to the use of specific
molecular structures to alter the ionic and/or hydrophobic properties of an array site to: (a)
accelerate the rate at which molecular interactions

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occur at the site, (b) increase the specificity
and/or selectivity of the interaction between molecular structures at the site, (c) enable
molecular interactions to occur with adequate or enhanced specificity at non-elevated temperatures,
including ambient or room temperature, and (d) enable molecular interactions to occur at minimized
salt concentrations, but excluding combinatorial chemistry approaches and associated hybridization
devices to develop and/or evaluate alternative chemistries. By way of example, Exhibit D
hereof sets forth representative claims of certain existing GENOMETRIX PATENTS which meet the
criteria for SURFACE CHEMISTRIES IP.

     1.3. UNIVERSAL ARRAY IP means GENOMETRIX INTELLECTUAL PROPERTY used for the research,
development, manufacture or use of COMPLEMENTARY PRODUCTS pertaining to the creation and
construction of self-assembling probe arrays enabling in situ configuration of the biosites,
wherein an unvarying probe array (capture probe) is activated by binding to a corresponding set of
adapters (target probes) to yield a modified probe array which is specifically configured for
analysis of a target molecular structure or mixture thereof UNIVERSAL ARRAY IP shall include
intellectual property relating to: (a) the methodology of constructing such universal arrays, (b)
the reaction substrate which defines such universal arrays, (c) sets of nucleic acid capture probes
defined to achieve the formation of a such universal arrays, and shall exclude: (x) manufacturing
methods and apparatus, (y) the application of any such universal array where the capture probe is a
hapten or a hapten-binding polypeptide, and (z) the application and manufacturing of any such
universal array where the capture probe is avidin, the capture specific domain is biotin, and the
target specific domain is an oligonucleotide. By way of example, Exhibit D hereof sets
forth representative claims of certain existing GENOMETRIX PATENTS which meet the criteria for
UNIVERSAL ARRAY IP.

     1.4. GENOMETRIX INTELLECTUAL PROPERTY means GENOMETRIX PATENTS and unpatented information
relating to the research, development, manufacture or use of COMPLEMENTARY PRODUCTS and disclosed
to MOTOROLA pursuant to Section 2.1 hereof.

     1.5. GENOMETRIX PATENTS means (i) the patents and patent applications set forth on Exhibit A
hereof, together with divisions, continuations, continuations-in-part, reissues and foreign
counterparts thereof; and (ii) patents and patent applications claiming inventions or discoveries
conceived and reduced to practice by GENOMETRIX prior to the third anniversary of the Effective
Date and which meet the criteria for E-FIELD MANIPULATION IP, SURFACE CHEMISTRIES IP or UNIVERSAL
ARRAY IP. The foregoing notwithstanding, the term GENOMETRIX PATENTS includes only such patents and
patent applications which are owned, licensed to or otherwise controlled by GENOMETRIX and with
respect to which GENOMETRIX has the right to grant the licenses set forth herein and provided,
further, GENOMETRIX PATENTS shall include such patents or patent applications only to the extent to
which and subject to the conditions under which GENOMETRIX has the right to grant licenses or
rights of the scope granted herein.

     1.6. COMPLEMENTARY PRODUCTS means (a) products and services based on arrays of size less than
twenty (20) distinct probes (excluding probes required for redundancy or calibration) or greater
than nine hundred and ninety nine (999) distinct probes, (b) products and services based on arrays
of any size for use in point of care diagnostics using portable

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instruments, and (c) such
additional products and services based on arrays of any size as MOTOROLA and GENOMETRIX may
mutually agree from time to time.

     1.7. E-FIELD PRODUCTS means COMPLEMENTARY PRODUCTS (or a portion thereof) which (a) are
covered in whole or in part by, or the use thereof is covered in whole or in party by, the E-FIELD
MANIPULATION IP; or (b) are manufactured through use of a process which is covered in whole or in
part by the E-FIELD MANIPULATION IP.

     1.8. SURFACE CHEMISTRY PRODUCTS means COMPLEMENTARY PRODUCTS which (a) are covered in whole or
in part by, or the use thereof is covered in whole or in part by, the SURFACE CHEMISTRIES IP or (b)
are manufactured through use of a process which is covered, in whole or in part, the SURFACE
CHEMISTRIES IP.

     1.9. UNIVERSAL ARRAY PRODUCTS means COMPLEMENTARY PRODUCTS which (a) are covered in whole or
in part by, or the use thereof is covered in whole or in part by, the UNIVERSAL ARRAY IP or (b) are
manufactured through use of a process which is covered, in whole or in part, by the UNIVERSAL ARRAY
IP.

     1.10. LICENSED PRODUCTS means the E-FIELD PRODUCTS, the SURFACE CHEMISTRY PRODUCTS and the
UNIVERSAL ARRAY PRODUCTS.

     1.11. NET SALES means MOTOROLA’s billings for LICENSED PRODUCTS sold, leased or transferred
hereunder, less the sum of the following:

	 	(a)	 	discounts allowed in amounts customary in the trade;
	 
	 	(b)	 	sales, tariff duties and/or use taxes directly imposed and with
reference to particular sales;
	 
	 	(c)	 	packing and crating charges separately stated;
	 
	 	(d)	 	outbound transportation prepaid or allowed; and
	 
	 	(e)	 	amounts allowed or credited on returns.

     No deductions shall be made for commissions paid to individuals whether they be with
independent sales agencies or regularly employed by MOTOROLA and on its payroll, or for cost of
collections. LICENSED PRODUCTS shall be considered “sold” when billed out or invoiced. For
LICENSED PRODUCTS disposed of other than by sale, the NET SALES of such LICENSED PRODUCTS shall be
determined based on the fair market value of such LICENSED PRODUCTS. In the event that a LICENSED
PRODUCT is sold, leased, disposed of or otherwise transferred between MOTOROLA and an entity
affiliated with MOTOROLA in a transaction which results in revenue to MOTOROLA, the NET SALES of
LICENSED PRODUCTS with respect to such transfer shall be calculated based on the price at which
similar
quantities of such LICENSED PRODUCT would have been sold to an independent third party in an
arms-length transaction as of the date of such transfer.

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     In the event that a LICENSED PRODUCT is sold in combination with one or more other integral
components not by itself a LICENSED PRODUCT, and such other integral components are not sold
separately, the parties shall arrive at a reasonable method of calculating NET SALES with respect
to such LICENSED PRODUCT, based on the relative fair market value of such LICENSED PRODUCT as
compared with the fair market value of such other integral components, and pursuant to the
procedures set forth in this paragraph. For the purposes of such NET SALES determination,
representative integral components may include: DNA sequences, reagents, micro fluidics and liquid
handling systems, and data acquisition, manipulation and display systems. In addition, royalties
paid to third parties shall be a consideration in determining fair market value. Unless otherwise
agreed by the parties, the NET SALES of a particular LICENSED PRODUCT that is sold in combination
with one or more other integral components not by itself a LICENSED PRODUCT, shall be determined as
follows: a mutually agreeable third party with experience in the relevant technology shall be
selected by the American Arbitration Association to determine the method of calculating the NET
SALES (the “Representative”). Each party shall present the Representative with a detailed written
position and have an opportunity for an oral presentation. The decision of the Representative
shall be final, binding and not appealable, and such proceeding shall be completed within sixty
(60) days of the selection of the Representative. Each of GENOMETRIX and MOTOROLA shall bear its
own costs in connection with such NET SALES determination, and each shall pay one-half of the fees
of the Representative. Notwithstanding the foregoing, the parties agree that the determination of
NET SALES of LICENSED PRODUCTS pursuant to this Section 1.11 is subject to the MIT AGREEMENT,
provided, however that GENOMETRIX agrees to use reasonable best efforts to obtain MIT’s approval of
the methods utilized by the parties pursuant to this Section 1.11 for determining such NET SALES.

     1.12. EFFECTIVE DATE means the date of this Agreement as set forth above.

     1.13. LICENSE OPTION PERIOD means the period commencing on the EFFECTIVE DATE and continuing
until three (3) years after the EFFECTIVE DATE.

     1.14.
OPTION EXERCISE FEE means a fee of * Dollars ($*), payable by
MOTOROLA to GENOMETRIX immediately prior to the granting of a license under Section 3.2, 3.3 or 3.4
hereof, and * (*%) of which shall be credited toward royalties to be paid by MOTOROLA
to GENOMETRIX with respect to applicable LICENSED PRODUCTS. By way of example but not limitation,
* (*%) of the OPTION EXERCISE FEE for the E-FIELD MANIPULATION IP shall be creditable
towards royalties to be paid by MOTOROLA to GENOMETRIX with respect to E-FIELD PRODUCTS, but shall
not be creditable towards royalties to be paid by MOTOROLA to GENOMETRIX with respect to SURFACE
CHEMISTRY PRODUCTS or UNIVERSAL ARRAY PRODUCTS.

     1.15. SUBSIDIARY means a corporation, company, or other entity more than forty-eight percent
(48%) of whose outstanding shares or securities (representing the right to vote for the election of
directors or other managing authority) are, now or hereafter, owned or controlled, directly or
indirectly by a parry hereto, but such corporation, company, or other entity shall be
deemed to be a SUBSIDIARY only so long as such ownership or control exists. Unless otherwise
specified, the term MOTOROLA includes its SUBSIDIARIES.

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     1.16. STOCK PURCHASE AGREEMENT means the Stock Purchase Agreement dated as of the date hereof
by and between GENOMETRIX and MOTOROLA.

     1.17. COLLABORATION AGREEMENT means that certain Collaboration Agreement among MIT, GENOMETRIX
and certain others, dated May 28, 1993 and amended November 5, 1993, and as subsequently amended
from time-to-time.

     1.18. BAYLOR means the Baylor College of Medicine.

     1.19. BAYLOR AGREEMENT means that certain agreement entered into by and between GENOMETRIX and
BAYLOR and having an effective date of May 31, 1998, and as amended from time-to-time. A true and
accurate copy of the BAYLOR AGREEMENT is attached hereto as Exhibit C.

     1.20. MIT means the Massachusetts Institute of Technology.

     1.21. MIT AGREEMENT means that certain agreement entered into by and between GENOMETRIX and
MIT and having an effective date of May 27, 1994, as amended April 1, 1996 (the 5722L technology
only), and as subsequently amended from time-to-time. A true and accurate copy of the MIT
AGREEMENT is attached hereto as Exhibit B.

     1.22. HARC means the Houston Advanced Research Center.

     1.23. VALID PATENT CLAIM shall mean (i) a claim of an issued patent that has not been declared
invalid by a court or administrative proceeding from which there is no appeal; and (ii) a pending
claim asserted in good faith and with respect to which GENOMETRIX has an obligation to pay a
royalty to MIT pursuant to the MIT AGREEMENT.

SECTION 2. INFORMATION UPDATES: COOPERATION

     2.1. From time to time during the term of this Agreement and prior to the third anniversary of
the Effective Date, but not more than once in any three (3) month period, a person or persons
designated by GENOMETRIX will confer with a person or persons designated by MOTOROLA, at a mutually
acceptable date and time during normal business hours, to (a) discuss the intellectual property
included in the GENOMETRIX PATENTS, and (b) provide MOTOROLA with information GENOMETRIX reasonably
believes to be relevant to MOTOROLA’s decision to exercise its option to obtain a license under
Section 3.2, 3.3 or 3.4 hereof.

     2.2. The parties hereto may pursue additional joint evaluation, research and other activities
as mutually agreed from time to time, including, without limitation, services provided by
GENOMETRIX , licenses under a party’s intellectual property in addition to the licenses granted to
MOTOROLA hereunder, and additional investments in GENOMETRIX by MOTOROLA. The parties also agree
to discuss in good faith from time to time the potential for
MOTOROLA to distribute certain GENOMETRIX products, when mutually agreed and where consistent
with the parties’ respective business models.

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SECTION 3. LICENSES

     3.1. GENOMETRIX hereby grants to MOTOROLA a non-exclusive, royalty-free, worldwide license,
without the right to grant sublicenses, under the E-FIELD MANIPULATION IP, the SURFACE CHEMISTRIES
IP and the UNIVERSAL ARRAY IP, to use the E-FIELD MANIPULATION IP, the SURFACE CHEMISTRIES IP and
the UNIVERSAL ARRAY IP, for internal evaluation and research purposes relating to the development
of LICENSED PRODUCTS (but not to sell or otherwise commercially dispose of LICENSED PRODUCTS).

     3.2. At any time during the LICENSE OPTION PERIOD and upon written notification by MOTOROLA to
GENOMETRIX and the payment by MOTOROLA of one OPTION EXERCISE FEE, GENOMETRIX shall grant to
MOTOROLA a non-exclusive, royalty-bearing, worldwide license under the E-FIELD MANIPULATION IP, to
make, have made, use, sell and import E-FIELD PRODUCTS.

     3.3. At any time during the LICENSE OPTION PERIOD and upon written notification by MOTOROLA to
GENOMETRIX and the payment by MOTOROLA of one OPTION EXERCISE FEE, GENOMETRIX shall grant to
MOTOROLA a royalty-bearing, worldwide license under the SURFACE CHEMISTRIES IP to make, have made,
use, sell and import SURFACE CHEMISTRY PRODUCTS.

     3.4. At any time during the LICENSE OPTION PERIOD and upon written notification by MOTOROLA to
GENOMETRIX and the payment by MOTOROLA of one OPTION EXERCISE FEE, GENOMETRIX shall grant to
MOTOROLA a non-exclusive, royalty-bearing, worldwide license, under the UNIVERSAL ARRAY IP, to
make, have made, use, sell and import UNIVERSAL ARRAY PRODUCTS.

     3.5. Notwithstanding any other provision of this Agreement to the contrary, the licenses
granted to MOTOROLA pursuant to Sections 3.2, 3.3 and 3.4 hereof shall include the right of
MOTOROLA to grant sublicenses to third parties only to the extent necessary to enable MOTOROLA to
contract with such third party for the manufacture of LICENSED PRODUCTS solely for MOTOROLA’s
account and not for sale or other commercial disposition by such third party provided that such
third party shall agree in writing to obligations of confidentiality and restrictions on use of the
GENOMETRIX INTELLECTUAL PROPERTY which are no less stringent than the restrictions set forth
herein.

     3.6. Notwithstanding any provision to the contrary contained in this Agreement, the licenses
and options granted to MOTOROLA hereunder shall not include the field of use of a GENOSENSOR SYSTEM
as that term is defined in the COLLABORATION AGREEMENT.

     3.7. The licenses and options granted to MOTOROLA hereunder shall be subject to the provisions
of the MIT AGREEMENT and the BAYLOR AGREEMENT to the extent forth in such agreements, and MOTOROLA
shall be bound by certain obligations (but in all cases excluding payment obligations) to MIT and
to BAYLOR, respectively, as if it were the licensee under such agreements as set forth in such
agreements. Copies of the MIT AGREEMENT and
the BAYLOR AGREEMENT are attached to this Agreement as Exhibit B and Exhibit
C,

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respectively. Copies of this Agreement shall be provided by GENOMETRIX to MIT and BAYLOR.

     3.8. MOTOROLA hereby acknowledges that GENOMETRIX has licensed certain of the GENOMETRIX
PATENTS from third parties, including without limitation MIT and BAYLOR, and the rights thereto
granted to MOTOROLA hereunder may be subject to compliance with and provisions of the terms of such
license agreements, including the right of such third parties to practice under the GENOMETRIX
PATENTS for non-commercial research and academic purposes, as further provided in GENOMETRIX ‘s
agreements with such third parties. If for any reason GENOMETRIX is in default or has failed to
comply with the terms of any agreement with third parties concerning the GENOMETRIX PATENTS, then
in such event GENOMETRIX shall promptly give notice of such default, termination, repudiation or
cancellation to MOTOROLA who shall have the option but not the obligation to take such steps and
make such payments as may be required in order to rectify the default and to bring the agreements
pursuant to which MOTOROLA holds the GENOMETRIX PATENTS into good standing, provided that any
monies expended by MOTOROLA in so doing shall be fully creditable against any royalties or other
monies due and owing to GENOMETRIX hereunder.

     3.9. GENOMETRIX hereby grants MOTOROLA a first right to negotiate a license under intellectual
property (other than the GENOMETRIX PATENTS licensed to MOTOROLA pursuant to this Agreement) owned
or controlled by GENOMETRIX and which GENOMETRIX may choose, from time-to-time, to make available
to third parties on a non-exclusive basis. In all such cases, the licensing terms offered to
MOTOROLA shall be no less favorable than those offered to such third party non-exclusive licensees,
taking into account any development funding and other consideration received from such third party
licensees.

     3.10. MOTOROLA hereby grants GENOMETRIX a first right to negotiate a license under any
intellectual property related to or useful for the practice of the GENOMETRIX PATENTS, owned or
controlled by MOTOROLA and that MOTOROLA chooses to make available from time to time to third
parties on a non-exclusive basis. In all such cases, the licensing terms offered to GENOMETRIX
shall be no less favorable than those offered to such third party licensees, taking into account
any development funding and other consideration received from such third party licensees.

     3.11. Notwithstanding any other provision of this Agreement, nothing herein shall be construed
as granting or requiring either party to grant any license or rights under its intellectual
property to any party outside this Agreement.

     3.12. MOTOROLA agrees that any LICENSED PRODUCT produced for sale in the United States will be
manufactured substantially in the United States, unless any waiver of such requirement is obtained.

     3.13. All rights reserved to the United States Government and others under Public Law 96-517
and 98-620 shall remain and shall in no way be affected by this Agreement.

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SECTION 4. RIGHTS TO FILE AND ENFORCE THE GENOMETRIX PATENTS

     4.1. GENOMETRIX shall have responsibility alone or in conjunction with its licensors, for the
preparation, filing, prosecution, maintenance and enforcement of any and all patent applications
and patents comprising the GENOMETRIX PATENTS. GENOMETRIX shall promptly inform MOTOROLA regarding
all matters directly pertaining to the prosecution, maintenance or enforcement of the GENOMETRIX
PATENTS to the extent such matters specifically relate to LICENSED PRODUCTS with respect to which
MOTOROLA has paid the OPTION EXERCISE FEE, and, to the extent permissible by its agreements with
licensors of the applicable patent or patent application, shall seek MOTOROLA’S counsel concerning
all proposed courses of action affecting the scope of such GENOMETRIX PATENTS, including, but not
limited to, the countries in which patent prosecution should be obtained and MOTOROLA shall be
provided with a reasonable opportunity to comment on any document that GENOMETRIX intends to file
or cause to be filed with the relevant intellectual property or patent office relating directly to
any such GENOMETRIX PATENTS.

     4.2. If, during the prosecution of any patent application covering any GENOMETRIX PATENT under
which MOTOROLA has obtained a license by payment of the corresponding OPTION EXERCISE FEE,
GENOMETRIX decides or is advised of a decision to discontinue prosecution of the application or
maintenance of such patent, GENOMETRIX shall promptly advise MOTOROLA of the decision and, if so
requested by MOTOROLA, shall, only to the extent permitted under GENOMETRIX’s agreements with third
parties, continue such prosecution or maintenance, provided that MOTOROLA shall bear the costs
associated with such continued prosecution or maintenance.

     4.3. If GENOMETRIX or MOTOROLA learn of the infringement or threatened infringement of any
GENOMETRIX PATENT, such party will inform the other party (GENOMETRIX or MOTOROLA, as the case may
be) in writing within thirty (30) days and provide all known evidence of the infringement.

     4.4. MOTOROLA may request in writing that GENOMETRIX take legal action against infringement or
potential infringement of a GENOMETRIX PATENT under which MOTOROLA has obtained a license by
payment of the corresponding OPTION EXERCISE FEE, upon which GENOMETRIX and MOTOROLA shall confer
to determine in good faith an appropriate course of action to enforce the GENOMETRIX PATENT, or
otherwise abate the infringement thereof, provided that, such course of action shall be permissible
under the applicable agreements between GENOMETRIX and the licensors of the applicable GENOMETRIX
PATENT.

     4.5. Each party will cooperate with the other in litigation proceedings against any third
party brought under this Agreement, except that either party may be represented, at its sole
expense, by counsel of its choice in any suit brought by the other party.

SECTION 5. PAYMENTS AND REPORTS

     5.1. In consideration for the rights and licenses granted in Section 3 hereof, MOTOROLA shall
pay GENOMETRIX a single royalty of up to *% of NET SALES of

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LICENSED PRODUCTS covered by a VALID PATENT CLAIM, except as otherwise provided in Section 5.2
below, or unless the parties hereto shall otherwise agree in writing, provided that such royalty
shall be fully paid-up, and no further royalty shall be due, (a) for any calendar year for which
the total royalty payments by MOTOROLA under this Section 5.1
equals * ($*), or (b) if the total royalties paid to GENOMETRIX by MOTOROLA under this Section 5.1
have reached * ($*). The foregoing notwithstanding, if MOTOROLA’S
royalties are fully paid up pursuant to subsection (a) or (b) hereof, and if GENOMETRIX continues
to have an obligation to pay royalties to MIT pursuant to the MIT AGREEMENT as a result of the
sale, lease transfer or other disposal of LICENSED PRODUCTS by MOTOROLA pursuant to this Agreement,
MOTOROLA shall pay GENOMETRIX * MIT by GENOMETRIX,
provided that GENOMETRIX agrees to use reasonable best efforts to obtain from MIT a waiver of the
payment of such additional royalties; and provided, further, that the term “reasonable best
efforts” shall not be interpreted to require GENOMETRIX to pay additional consideration to MIT in
order to secure such a waiver.

     5.2. If one or more claims of a GENOMETRIX PATENT issues and covers a LICENSED PRODUCT under
which MOTOROLA is not paying royalties to GENOMETRIX pursuant to this Agreement as of such issue
date, then, in addition to the royalties payable by MOTOROLA pursuant to Section 5.1 above,
MOTOROLA shall pay to GENOMETRIX a royalty of up to * (*%) of the NET SALES of the
LICENSED PRODUCTS covered by such GENOMETRIX PATENT for the period of time commencing on the date
of first sale of the applicable LICENSED PRODUCT until the issue date of the applicable GENOMETRIX
PATENT if: (a) such period does not exceed * years, and (b) full disclosure of the applicable
GENOMETRIX PATENT was made to MOTOROLA prior to the introduction of such LICENSED PRODUCT into the
commercial marketplace; and (c) no commercial product was available during the applicable period
which product was covered by the same intellectual property without license from GENOMETRIX, except
for products made available by a third party to whom GENOMETRIX has provided written notice that
such product infringes the GENOMETRIX PATENTS.

     5.3. The equivalent terms of the licensing agreement between MOTOROLA and GENOMETRIX shall in
no case be less favorable than future licensing agreements which GENOMETRIX may enter into with
other third parties, taking into account any development funding and other consideration received
from such third party licensees.

     5.4. No multiple royalties shall be payable because any LICENSED PRODUCT, its manufacture,
use, lease, sale or import are or shall be covered by more than one GENOMETRIX PATENT licensed
under this Agreement. All payments hereunder shall be paid in full, without deduction of taxes or
other fees which may be imposed by any government and which shall be paid by MOTOROLA.

     5.5. Within thirty (30) days of the close of each calendar quarter following the exercise by
MOTOROLA of its option to obtain a license pursuant to Section 3.2, 3.3 or 3.4 hereof, MOTOROLA
shall (i) deliver to GENOMETRIX a report setting forth all LICENSED PRODUCTS sold, leased or
otherwise transferred or disposed of by MOTOROLA during such calendar quarter, which report shall
indicate the NET SALES thereof and the amount of royalties

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due, including a list of all deductions therefrom, or such report shall certify that no
LICENSED PRODUCTS were sold or otherwise disposed of, and (ii) to the extent royalties are due,
MOTOROLA shall make such royalty payments to GENOMETRIX in accordance with this Section 5. In the
case of E-FIELD PRODUCTS, the reports submitted by MOTOROLA to GENOMETRIX shall contain the
information and be in the form required of GENOMETRIX pursuant to Article 5 of the MIT AGREEMENT.

     5.6. Payments of royalties by MOTOROLA shall be made in United States currency and by wire
transfer to such account as GENOMETRIX may specify in writing from time to time or by check mailed
to GENOMETRIX at the address in Section 10.11. In the event of a wire transfer, notice of payment
shall be sent by MOTOROLA to GENOMETRIX’s address in Section 10.11. Conversion of foreign currency
to United States currency shall be made at the exchange rate prevailing at the Chase Manhattan Bank
(N.A.) on the last business day of the quarterly reporting period to which such royalty payments
relate, unless otherwise agreed by GENOMETRIX and MOTOROLA.

     5.7. Any payment hereunder which shall be delayed beyond the due date shall be subject to an
interest charge at a per annum rate equal to the greater of: (i) the prime rate in effect at the
Chase Manhattan Bank (N.A.) on the due date, or (ii) the rate which GENOMETRIX is required to pay
to a third party licensor; but in any event no greater than the highest rate allowed by law on the
due date. The payment of such interest shall not foreclose GENOMETX from exercising any other
rights it may have as a consequence of the lateness of any payment.

     5.8. With respect to the royalties set forth in Section 5.1, MOTOROLA shall keep clear and
accurate records with respect to all LICENSED PRODUCTS sold or otherwise disposed of by MOTOROLA,
provided that, in the case of E-FIELD PRODUCTS, such records shall meet the requirements imposed on
GENOMETRIX by MIT pursuant to Article 5 of the MIT AGREEMENT. These records shall be retained by
MOTOROLA for a period of five (5) years from date of reporting and payment, notwithstanding the
expiration or other termination of this Agreement. GENOMETRIX shall have the right, through an
independent certified public accountant chosen by GENOMETRIX and reasonably acceptable to MOTOROLA,
and at the expense of GENOMETRIX , to examine and audit, not more than once a year, and during
normal business hours, all such records and such other records and accounts as may, under
recognized accounting practices, contain information bearing upon the amount of royalties payable
to GENOMETRIX under this Agreement. Prompt adjustment shall be made by MOTOROLA to compensate for
any errors and/or omissions disclosed by such examination or audit. Should the amount of royalties
due as determined through the audit exceed the amount of royalties reported to be due by MOTOROLA
by *% or $*, whichever is greater, then MOTOROLA shall pay the full cost of the audit.

     5.9. For a period of sixty (60) days from the Effective Date, GENOMETRIX hereby grants
MOTOROLA an exclusive first right of negotiation to obtain an exclusive, worldwide, royalty-bearing
license under the E-FIELD MANIPULATION IP, to make, use, sell and import LICENSED PRODUCTS. The
terms of such exclusive license shall be negotiated in good faith and mutually agreed by the
parties. During such sixty (60) day negotiation period, GENOMETRIX agrees not to enter into
discussions with any third party regarding the granting of rights or licenses to such third party
under the E-FIELD MANIPULATION IP.

10

 

SECTION 6. TERM, TERMINATION AND ASSIGNABILITY

     6.1. The term of this Agreement shall be from the EFFECTIVE DATE until expiration of the last
patent or disallowance of the last GENOMETRIX PATENT under which MOTOROLA has obtained a license by
payment of the corresponding OPTION EXERCISE FEE, unless earlier terminated as elsewhere provided
in this Agreement.

     6.2. In the event of any material breach of this Agreement by either party hereto, if such
breach is not corrected within thirty (30) days after written notice to the breaching party in the
case of a breach in the payment of royalties under Section 5.1, or within forty-five (45) days
after written notice to the breaching party for all other breaches, the non-breaching party may, at
its option terminate this Agreement.

     6.3. The parties hereto acknowledge and agree that (a) In the event of the termination of the
MIT AGREEMENT, this Agreement shall not terminate and MOTOROLA shall become a licensee of MIT as
set forth in Section 13.6 of the MIT AGREEMENT, and (b) in the event of the termination of the
BAYLOR AGREEMENT, the rights and obligations of MOTOROLA hereunder with respect to SURFACE
CHEMISTRIES IP and SURFACE CHEMISTRY PRODUCTS specific to the BAYLOR AGREEMENT shall be terminated,
provided that GENOMETRIX shall have no objection if MOTOROLA enters into good faith discussions
with BAYLOR in order to continue its rights and obligations under the SURFACE CHEMISTRIES IP
originally licensed to GENOMETRIX pursuant to the BAYLOR AGREEMENT.

     6.4. The rights or privileges provided for in this Agreement may be assigned or transferred by
either party only with the prior written consent of the other party, except that either party may
assign its rights under this Agreement to a successor in ownership of all or substantially all of
its assets relating to the subject matter of this Agreement.

     6.5. Sections 5.5, 5.6, 5.7 and 5.8, this Section 6.5, and Sections 7, 9 and 10 shall survive
the expiration or termination of this Agreement.

SECTION
7. PRODUCT LIABILITY, INSURANCE AND INDEMNIFICATION

     7.1.
E-FIELD MANIPULATION IP.

     (a) In the case of E-FIELD MANIPULATION IP and E-FIELD PRODUCTS, MOTOROLA shall at all
times during the term of this Agreement and thereafter, indemnify, defend and hold
GENOMETRIX, MIT, HARC, and BAYLOR, their trustees, directors, officers, employees and
affiliates, harmless against all claims, proceedings, demands and liabilities of any kind
whatsoever, including legal expenses and reasonable attorneys’ fees, arising out of the
death of or injury to any person or persons or out of any damage to property, resulting from
the production, manufacture, sale, use, lease, consumption or advertisement of an E-FIELD
PRODUCT(s) by MOTOROLA.

     (b) Prior to the first use of an E-FIELD PRODUCT for a commercial application involving
human subjects, MOTOROLA shall obtain and carry in full force and effect commercial, general
liability insurance which shall protect GENOMETRIX, MOTOROLA, MIT, HARC, and BAYLOR with
respect to events covered by Section

11

 

7.1(a) above. Such insurance shall be written by a reputable insurance company
authorized to do business in The Commonwealth of Massachusetts, shall list GENOMETRIX, MIT,
HARC, and BAYLOR as additional named insured thereunder, shall be endorsed to include
product liability coverage and shall require thirty (30) days written notice to be given to
MIT, HARC, and BAYLOR prior to any cancellation or material change thereof. The limits of
such insurance shall not be less than * ($*) per occurrence
with an aggregate of * ($*) for personal injury or death, and
* ($*) per occurrence with an aggregate of
* ($*) for property damage. MOTOROLA shall provide GENOMETRIX, MIT, HARC,
and BAYLOR with Certificates of Insurance evidencing the same.

     7.2. SURFACE CHEMISTRIES IP.

     (a) In the case of the SURFACE CHEMISTRIES IP and SURFACE CHEMISTRY PRODUCTS, each
party shall notify the other of any claim, lawsuit or other proceeding related to the
SURFACE CHEMISTRIES IP. MOTOROLA agrees that it will defend, indemnify and hold harmless
GENOMETRIX , BAYLOR, MIT, HARC, and each of their respective faculty members, scientists,
researchers, employees, officers, trustees, directors, and agents and each of them (the
“Indemnified Parties”), from and against any and all claims, causes of action, lawsuits or
other proceedings filed or otherwise instituted against any of the Indemnified Parties
related directly or indirectly to or arising out of an act or omission of MOTOROLA in the
design, manufacture, use or sale of a SURFACE CHEMISTRY PRODUCT, or any other embodiment of
the SURFACE CHEMISTRIES IP.

     (b) MOTOROLA shall, for so long as MOTOROLA manufactures, uses or sells any SURFACE
CHEMISTRY PRODUCT maintain in full force and effect policies of (i) worker’s compensation
and/or employers’ liability insurance within statutory limits and (ii) general liability
insurance (with Broad Form General Liability endorsement) with limits of not less than
* ($*) per occurrence with an annual aggregate of
* ($*) and (iii) with limits of not less than *
($*) per occurrence with an annual aggregate of *
($*). Such coverage(s) shall be purchased from a carrier or carriers reasonably
acceptable to GENOMETRIX and BAYLOR, and shall name GENOMETRIX and BAYLOR as an additional
insured. Upon request by GENOMETRIX, MOTOROLA shall provide to GENOMETRIX and/or BAYLOR
copies of said policies of insurance.

     7.3. UNIVERSAL ARRAY IP.

     (a) In the case of the UNIVERSAL ARRAY IP, each party shall notify the other of any
claim, lawsuit or other proceeding related to the UNIVERSAL ARRAY IP. MOTOROLA agrees that
it will defend, indemnify and hold harmless GENOMETRIX and its employees, officers,
trustees, directors, and agents and each of them (the “Indemnified Parties”), from and
against any and all claims, causes of action, lawsuits or other proceedings filed or
otherwise instituted against any of the Indemnified Parties

12

 

related directly or indirectly to or arising out of an act or omission of MOTOROLA in
the design, manufacture, use or sale of the UNIVERSAL ARRAY PRODUCT, or any other embodiment
of the UNIVERSAL ARRAY IP.

     (b) MOTOROLA shall, for so long as MOTOROLA manufactures, uses or sells any UNIVERSAL
ARRAY PRODUCT maintain in full force and effect policies of (i) worker’s compensation and/or
employers’ liability insurance within statutory limits and (ii) general liability insurance
(with Broad Form General Liability endorsement) with limits of
not less than * ($*) per occurrence with an annual aggregate of * ($*) and (iii) products liability insurance, with limits of not less than
* ($*) per occurrence with an annual aggregate of * ($*). Such coverage(s) shall be purchased from a carrier or carriers
reasonably acceptable to GENOMETRIX, and shall name GENOMETRIX as an additional insured.
Upon request by GENOMETRIX, MOTOROLA shall provide to GENOMETRIX with copies of said
policies of insurance.

SECTION 8. WARRANTIES

     8.1. GENOMETRIX warrants that except as- otherwise set forth herein and in the Exhibits
attached hereto, including without limitation the MIT AGREEMENT and the BAYLOR AGREEMENT, to the
best of its knowledge it owns or has license rights to the GENOMETRIX PATENTS, free and clear of
all liens, encumbrances, and claims or demands of third parties.

     8.2. Each party warrants that it has the authority to enter into this Agreement.

     8.3. GENOMETRIX warrants that, to the best of its knowledge, Exhibit A sets forth all patents
or patent applications claiming E-FIELD MANIPULATION IP, SURFACE CHEMISTRIES IP and UNIVERSAL ARRAY
IP owned, controlled, or licensed by GENOMETRIX as of the EFFECTIVE DATE. To the best of
GENOMETRIX’s knowledge, all patents listed in Exhibit A are valid and in full force and all
patent applications listed therein as pending have been prosecuted in good faith as required by law
hind are in good standing. To the best knowledge of GENOMETRIX , none of the patents or patent
applications listed in Exhibit A is involved in any interference or opposition proceeding, and
there has been no written notice received by GENOMETRIX that such proceeding will hereafter be
commenced.

     8.4. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, GENOMETRIX, ITS TRUSTEES,
DIRECTORS, OFFICERS, EMPLOYEES AND AFFILIATES MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTIES OF
ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, VALIDITY OF THE GENOMETRIC PATENTS, CLAIMS, ISSUED OR PENDING, AND THE
ABSENCE OF LATENT OR OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE. NOTHING IN THIS AGREEMENT SHALL
BE CONSTRUED AS A REPRESENTATION MADE OR WARRANTY GIVEN BY GENOMETRIX THAT THE PRACTICE BY MOTOROLA
OF THE LICENSE GRANTED HEREUNDER SHALL NOT INFRINGE THE PATENT RIGHTS OF ANY THIRD PARTY. EXCEPT
AS EXPRESSLY STATED HEREIN, IN NO EVENT SHALL

13

 

GENOMETRIX, ITS TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES AND AFFILIATES BE LIABLE FOR
INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING ECONOMIC DAMAGE OR INJURY TO PROPERTY
AND LOST PROFITS.

SECTION 9. CONFIDENTIALITY

     9.1. CONFIDENTIAL INFORMATION means any materials or information provided by a party (the
“Disclosing Party”) to the other party (the “Receiving Party”), regardless of whether such
information is provided in written, oral, electronic or other form, provided that CONFIDENTIAL
INFORMATION shall not include information or materials which:

	 	(a)	 	are in possession of the Receiving Party at the time of
disclosure thereof as demonstrated by prior written records;
	 
	 	(b)	 	are or later become part of the public domain through no fault
of the Receiving Party;
	 
	 	(c)	 	are received by the Receiving Party from a third party having a
lawful right to disclose same and having no obligation of confidentiality to
the Disclosing Party with respect thereto;
	 
	 	(d)	 	are developed independently by the Receiving Party without use
of or access to the Confidential Information, as evidenced by competent written
records; or
	 
	 	(e)	 	are required by law or regulation to be disclosed, provided,
however, that the Receiving Party has provided prompt, advance written notice
to the Disclosing Party so as to enable the Disclosing Party to seek a
protective order or otherwise prevent disclosure of such Confidential
Information.

     9.2. The Receiving Party agrees that the CONFIDENTIAL INFORMATION of the Disclosing Party
shall be maintained in strict confidence and shall not be disclosed, divulged or otherwise
communicated by the Receiving Party to any third party or used by the Receiving Party or any third
party for any purposes other than as expressly provided in this Agreement.

     9.3. Neither party shall issue any press release or make any public announcement relating to
this Agreement without the prior written approval of the other party.

SECTION 10. MISCELLANEOUS PROVISIONS

     10.1. MOTOROLA shall at all times during the term of this Agreement and for so long as it
shall practice the GENOMETRIX PATENTS or develop, make, use or sell LICENSED PRODUCTS, comply with
all laws that may control the import, export, manufacture, use, sale, marketing, distribution and
other commercial exploitation of LICENSED PRODUCTS or any other activity undertaken pursuant to
this Agreement.

14

 

     10.2. Nothing contained in this Agreement shall be construed as:

	 	(a)	 	conferring any license or other right, by implication, estoppel
or otherwise, under any patent application, patent or patent right, except as
herein expressly granted; or
	 
	 	(b)	 	conferring any license or right with respect to any trademark,
trade or brand name, a corporate name of any party, or any other name or mark,
or contraction, abbreviation or simulation thereof.

     10.3. No express or implied waiver by either of the parties to this Agreement of any breach of
any term, condition or obligation of this Agreement by the other party shall be construed as a
waiver of any subsequent breach of that term, condition or obligation or of any other term,
condition or obligation of this Agreement of the same or of a different nature.

     10.4. This Agreement is the result of negotiation between the parties and, accordingly, shall
not be construed for or against either party regardless of which party drafted this Agreement or
any portion thereof.

     10.5. Nothing in this Agreement shall be construed as creating a partnership, joint venture,
or other formal business organization of any kind.

     10.6. Except as expressly stated herein, in no event shall either party be liable to the other
party by reason of this Agreement or any breach or termination of this Agreement for any loss of
prospective profits or incidental or special or consequential damages.

     10.7. The headings and captions used in this Agreement are for convenience only, and are not
to be used in interpreting the obligations of the parties under this Agreement.

     10.8. Governing Law.

     (a) To the extent required by the BAYLOR AGREEMENT, the performance of this Agreement
as it relates to rights and licenses granted under the SURFACE CHEMISTRIES IP shall be
subject to, made under, and shall be construed and interpreted in accordance with the laws
of the State of Texas, and no conflict-of-laws rule or law that might refer such
construction and interpretation to the laws of another state, republic, or country shall be
considered. To the extent required by the BAYLOR AGREEMENT, this Agreement is performable
in part in Harris County, Texas, and the parties mutually agree that, to the extent required
by the BAYLOR AGREEMENT, personal jurisdiction and venue shall be proper in the state and
federal courts situated in Harris County, Texas, and, to the extent required by the BAYLOR
AGREEMENT, agree that any litigated dispute relating to the SURFACE CHEMISTRIES IP or
SURFACE CHEMISTRY PRODUCTS will be conducted solely in such courts.

     (b) To the extent required by the MIT AGREEMENT, this Agreement, as it relates to
rights and licenses granted under the E-FIELD MANIPULATION IP, shall be construed, governed,
interpreted and applied in accordance with the laws of the Commonwealth of Massachusetts,
U.S.A., except that questions affecting the

15

 

construction and effect of any patent shall be determined by the law of the country in
which the patent was granted.

     (c) In all cases not covered by Sections 10.8(a) and 10.8(b) above, the performance of
this Agreement as it relates to rights and licenses granted to MOTOROLA shall be subject to,
made under, and shall be construed and interpreted in accordance with the laws of the State
of Delaware.

     10.9. Dispute Resolution.

     (a) Disputes relating to the E-FIELD MANIPULATION IP and E-FIELD PRODUCTS shall be
governed by the provisions of this Section 10.9(a). Except for the right of either party to
apply to a court of competent jurisdiction for a temporary restraining order, a preliminary
injunction, or other equitable relief to preserve the status quo or prevent irreparable
harm, any and all claims, disputes or controversies arising under, out of, or in connection
with this Agreement, including any dispute relating to patent validity or infringement,
which the parties shall be unable to resolve within sixty (60) days shall be mediated in
good faith. The party raising such dispute shall promptly advise the other party of such
claim, dispute or controversy in a writing which describes in reasonable detail the nature
of such dispute. If the parties are unable to resolve such dispute within such sixty (60)
day period, either party may demand mediation by written notice to the other party. By not
later than ten (10) business days after the recipient has received such demand for
mediation, each party shall have selected for itself a representative who shall have the
authority to bind such party, and shall additionally have advised the other party in writing
of the name and title of such representative. By not later than twenty (20) business days
after the date of such demand for mediation, the party against whom the dispute shall be
raised shall select a mediation firm in the Boston area which is acceptable to the other
party (which acceptance shall not be unreasonably withheld) and such representatives shall
schedule a date with such firm for a mediation hearing. Within thirty (30) days after the
selection of the mediation firm, the parties shall enter into good faith mediation and shall
share the costs equally. If the representatives of the parties have not been able to
resolve the dispute within fifteen (15) business days after such mediation hearing, the
parties shall have the right to pursue any other remedies legally available to resolve such
dispute in either the courts of The Commonwealth of Massachusetts or in the United States
District Court for the District of Massachusetts, to whose jurisdiction for such purposes
GENOMETRIX and MOTOROLA each hereby irrevocably consents and submits. Notwithstanding the
foregoing, nothing in this Section 10.9(a) shall be construed to waive any rights or timely
performance of any obligations existing under this Agreement.

     (b) Disputes arising out of this Agreement and not covered by Section 10.9(a) above
shall be governed by this Section 10.9(b). The parties agree to attempt to settle all such
disputes amicably between them. The parties agree that any such dispute (other than
relating to the scope or validity of a patent and other than a dispute that is covered by
Section 10.9(a) above, will be submitted to non-binding arbitration in a mutually agreeable
location in accordance with the commercial rules and procedures of the American Arbitration
Association, before a single arbitrator who will be reasonably

16

 

familiar with the relevant industry. Each party shall pay its own costs in connection
with such arbitration and one half of the fees of the arbitrator While the parties agree to
attempt arbitration in good faith, nothing in this Section 10.9(b) shall be construed as
limiting the rights of either party to take legal action as it deems necessary to enforce
its rights under this Agreement.

     10.10. If any term, clause, or provision of this Agreement shall be judged to be invalid, the
validity of any other term, clause, or provision shall not be affected; and such invalid term,
clause, or provision shall be deemed deleted from this Agreement.

     10.11. This Agreement, including the Exhibits attached hereto and incorporated herein by
reference, sets forth the entire agreement and understanding between MOTOROLA and GENOMETRIX as to
the subject matter hereof, and supersedes and merges any and all prior discussions, correspondence,
agreements or understandings between the parties with respect to such matters, including without
limitation the Non-Disclosure Agreement by and between the parties and dated June 2, 1998 and the
Memorandum of Understanding dated November 4, 1998. Neither party shall be bound by any
conditions, definitions, warranties, understandings or representations with respect to such subject
matter other than as expressly provided herein (including the Exhibits attached hereto and
incorporated herein by reference) or as duly set forth on or subsequent to the date hereof in
writing and signed by a proper and duly authorized official of the party to be bound thereby.

     10.12. All notices required or permitted to be given hereunder shall be in writing and shall
be valid and sufficient if dispatched by registered mail, postage prepaid, in any post office in
the United States, or by recognized courier service providing evidence of receipt, addressed as
follows:

	 	 	 	 	 
	 

	 	If to MOTOROLA to:
	 	Motorola, Inc.

1303 East Algonquin Road

Schaumberg, Illinois 60062

Attention: Vice President for

Patents, Trademarks & Licensing
	 
	 	 	 	 
	 

	 	If to GENOMETRIX to:
	 	GENOMETRIX Incorporated

3608 Research Forest Drive, Suite B7

The Woodlands, Texas 77381

Attention: Mitchell D. Eggers, Ph.D.

Chief Executive Officer

17

 

     10.13. The date of receipt of such a notice shall be the date for the commencement of the running of
the period provided for in such notice, or the date at which such notice takes effect, as the case
may be.

     10.14. For the term of this Agreement, and for one (1) year after the expiration or
termination of this Agreement, MOTOROLA agrees not to solicit any employees of GENOMETRIX without
the prior written consent of GENOMETRIX, except through advertisements and solicitations directed
to the market generally.

REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

18

 

     IN WITNESS WHEREOF, each party hereto has caused this Agreement to be executed by its duly
authorized representatives:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	MOTOROLA, INC.	 	 	 	GENOMETRIX INCORPORATED	 	 
	 
	By:	 	/s/ Rudyard Istvan	 	 	 	By:	 	/s/ Mitchell Eggers	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	
	 	Rudyard Istvan
	 	 	 	 	 	Mitchell D. Eggers	 	 
	 

	 	Title:
	 	Corporate Vice President

and Corporate Director of Strategy
	 	 	 	 	 	Chief Executive Officer	 	 
	 
	By:	 	/s/ Jonathan Meyer	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Jonathan Meyer	 	 	 	 	 	 	 	 
	 

	 	Title:
	 	Corporate Vice President

Assistance General Counsel

and Director of Patents,
 Trademarks and
Licensing	 	 	 	 	 	 	 	 

 

 

Exhibit A

GENOMETRIX PATENTS

	1.	 	E-FIELD MANIPULATION IP.
	 
	 	 	U.S. 5,846,708

Issued 12/18/98
	 
	 	 	U.S. 5,653,939

Issued 8/5/97
	 
	 	 	U.S. 5,670,322

Issued 9/23/97
	 
	 	 	U.S. 5,532,128

Issued 7/2/98
	 
	 	 	USSN 08/511,649

Filed 8/7/95
	 
	 	 	USSN 07/872,582

Filed 4/23/92
	 
	 	 	USSN 07/794,036

Filed 11/19/91
	 
	 	 	USSN 08/353,957

Filed 12/12/94
	 
	 	 	USSN 08/457,096

Filed 6/1/95
	 
	 	 	USSN 08/633,861

Filed 4/15/96
	 
	 	 	WO 93/22678

Filed 11/11/93
	 
	 	 	PCT/US93/03829

Filed 4/23/92
	 
	 	 	EPC 92310253.7

 

 

	 	 	Filed 11/10/92

	2.	 	SURFACE CHEMISTRIES IP.
	 
	 	 	USSN 08/749,967

Filed 11/14/97
	 
	 	 	USSN 60/006,697

Filed 11/14/95
	 
	 	 	PCT/US96/18,212

Filed 11/14/96
	 
	 	 	European 96938841.2

Filed 11/14/96
	 
	 	 	Canada 2235762

11/14/96
	 
	 	 	Japanese 09-519045

Filed 11/14/96
	 
	3.	 	UNIVERSAL ARRAY IP.
	 
	 	 	USSN 60/034627

Filed 12/31/96
	 
	 	 	USSN 09/002170

Filed 12/31/97
	 
	 	 	PCT/US97/24098

Filed 12/31/97

 

 

Exhibit B

MASSACHUSETTS INSTITUTE OF TECHNOLOGY

GENOMETRIX, INCORPORATED

PATENT LICENSE AGREEMENT

(EXCLUSIVE)

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	WITNESSETH
	 	 	1	 
	DEFINITIONS
	 	 	2	 
	GRANT
	 	 	4	 
	DUE DILIGENCE
	 	 	6	 
	ROYALTIES
	 	 	7	 
	REPORTS AND RECORDS
	 	 	9	 
	PATENT PROSECUTION
	 	 	10	 
	INFRINGEMENT
	 	 	11	 
	PRODUCT LIABILITY AND WARRANTIES
	 	 	12	 
	EXPORT CONTROLS
	 	 	14	 
	NON-USE OF NAMES
	 	 	14	 
	ASSIGNMENT
	 	 	15	 
	DISPUTE RESOLUTION
	 	 	15	 
	TERMINATION
	 	 	16	 
	PAYMENTS, NOTICES AND OTHER COMMUNICATIONS
	 	 	17	 
	MISCELLANEOUS PROVISIONS
	 	 	18	 
	APPENDIX A
	 	 	20	 
	APPENDIX B
	 	 	21	 
	ATTACHMENT R
	 	 	22	 

-i-

 

MASSACHUSETTS INSTITUTE OF TECHNOLOGY

GENOMETRIX, INCORPORATED

PATENT LICENSE AGREEMENT

          This Agreement is made and entered into this
_______________, 1996, (the “Effective Date”) by
and between MASSACHUSETTS INSTITUTE OF TECHNOLOGY, a corporation duly organized and existing under
the laws of the Commonwealth of Massachusetts and having its principal office at 77 Massachusetts
Avenue, Cambridge, Massachusetts 02139, U.S.A. (hereinafter referred to as “M.I.T.”), and
GENOMETRIX, INCORPORATED, a corporation duly organized and existing under the laws of Delaware and
a company having its principal office at 3608 Research Forest Drive, Suite B-7, The Woodlands, TX
77381 (hereinafter referred to as “LICENSEE”).

WITNESSETH

          WHEREAS, M.I.T.; the Houston Advanced Research Center, having its principal address at 3608
Research Forest Dr., Suite B-7, The Woodlands, TX 77381 (hereinafter “HARC”); and the Baylor
College of Medicine, having its principal address at 1709 Dryden, Houston, TX 77030 (hereinafter
“BCM”) are the owners of and have the right to grant licenses under certain PATENT RIGHTS (as later
defined herein) relating to M.I.T. Case No. 6394L, “Methods And Apparatus For Detecting And Imaging
Particles Using Large Format Solid State Imaging Techniques,” by Mitchell Eggers, Daniel Ehrlich,
Michael Hogan, Mark Hollis, Bernard Kosicki, and Robert Reich and has the right to grant licenses
under said PATENT RIGHTS,

 

 

subject only to a royalty-free, nonexclusive license heretofore granted to the United States
Government;

          WHEREAS, HARC and BCM have appointed M.I.T. as their licensing agent for M.I.T. Case 6394L in
the Technology Transfer and Royalty Sharing Agreement by and between M.I.T., HARC and BCM effective
May 1, 1994.

          WHEREAS, LICENSEE and M.I.T. entered into an exclusive license agreement dated May 27, 1994
(attached hereto and referenced as ATTACHMENT R) which the parties now wish to terminate and
replace with two agreements, one for intellectual property related to M.I.T. Case 5722L and M.I.T.
Case 6838L the “5722L Agreement”, and one for intellectual property related to M.I.T. Case 6394L
the “6394L Agreement”, which is this agreement;

          WHEREAS, M.I.T. desires to have the PATENT RIGHTS developed and commercialized to benefit the
public and is willing to grant a license thereunder;

          WHEREAS, LICENSEE has represented to M.I.T., to induce M.I.T. to enter into this Agreement,
that LICENSEE is knowledgeable with respect to products similar to the LICENSED PRODUCT(s) (as
later defined herein) and/or the use of the LICENSED PROCESS(es) (as later defined herein) and that
it shall commit itself to a thorough, vigorous and diligent program of exploiting the PATENT RIGHTS
so that public utilization shall result therefrom; and

          WHEREAS, LICENSEE desires to obtain a license under the PATENT RIGHTS upon the terms and
conditions hereinafter set forth.

          NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein,
the parties hereto agree as follows:

-2-

 

SECTION 1. DEFINITIONS

          For the purposes of this Agreement, the following words and phrases shall have the following
meanings:

     1.1 “LICENSEE” shall mean GENOMETRIX, INCORPORATED and shall include a related company of
GENOMETRIX, INCORPORATED, the voting stock of which is directly or indirectly at least fifty
percent (50%) owned or controlled by GENOMETRIX, INCORPORATED, an organization which directly or
indirectly controls more than fifty percent (50%) of the voting stock of GENOMETRIX, INCORPORATED
and an organization, the majority ownership of which is directly or indirectly common to the
ownership of GENOMETRIX, INCORPORATED.

     1.2 “PATENT RIGHTS” shall mean all of the following M.I.T., HARC, and BCM intellectual
property:

	 	(a)	 	the United States and foreign patents and/or patent
applications listed in Appendices A and B;
	 
	 	(b)	 	United States and foreign patents issued from the applications
listed in Appendices A and B and from divisionals, continuations, revisions and
reexaminations of these applications;
	 
	 	(c)	 	claims of U.S. and foreign continuation-in-part applications,
and of the resulting patents, which are directed to subject matter specifically
described in the U.S. and foreign applications listed in Appendices A and B;
	 
	 	(d)	 	claims of all foreign patent applications, and of the resulting
patents, which are directed to subject matter specifically described in the
United States patents and/or patent applications described in a, b or c above;
and
	 
	 	(e)	 	any reissues of United States and foreign patents described in
a, b or c above.

     1.3 A “LICENSED PRODUCT” shall mean any product or part thereof which:

	 	(a)	 	is covered in whole or in part by a VALID CLAIM or a pending
claim asserted in good faith contained in the PATENT RIGHTS in the country in
which any such product or part thereof is made, used or sold; or
	 
	 	(b)	 	is manufactured by using a process which is covered in whole or
in part by a VALID CLAIM or pending claim asserted in good faith contained in
the

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	 	 	 	PATENT RIGHTS in the country in which any LICENSED PROCESS is used or in
which such product or part thereof is used or sold.

     1.4 A “LICENSED PROCESS” shall mean any process which is covered in whole or in part by a
VALID CLAIM or a pending claim asserted in good faith contained in the PATENT RIGHTS.

     1.5 “NET SALES” shall mean LICENSEE’s and its sublicensees’ billings for LICENSED PRODUCTS and
LICENSED PROCESSES sold hereunder less the sum of the following:

	 	(a)	 	discounts allowed in amounts customary in the trade;
	 
	 	(b)	 	sales, tariff duties and/or use taxes directly imposed and with
reference to particular sales;
	 
	 	(c)	 	packing and crating charges separately stated;
	 
	 	(d)	 	outbound transportation prepaid or allowed;
	 
	 	(e)	 	amounts allowed or credited on returns, and
	 
	 	(f)	 	amounts paid to third parties to collect monies due from
sublicensees.

          No deductions shall be made for commissions paid to individuals whether they be with
independent sales agencies or regularly employed by LICENSEE and on its payroll, or except as
provided above, for cost of collections. LICENSED PRODUCTS shall be considered “sold” when billed
out or invoiced.

     1.6 “TERRITORY” shall mean worldwide.

     1.7 A “VALID CLAIM” shall mean a claim of an issued, unexpired patent contained in the PATENT
RIGHTS so long as such claim shall not have been held invalid in an unappealed or unappealable
decision rendered by a court of competent jurisdiction.

     1.8 “FIELD OF USE” shall mean all fields of use except the field of use of a GENOSENSOR SYSTEM
previously licensed to Beckman Instruments, Inc. pursuant to the M.I.T. / Beckman Instruments, Inc.
patent license agreement dated May 28, 1993, which term “GENOSENSOR SYSTEM” is defined in a
Collaboration Agreement among M.I.T., Beckman

-4-

 

Instruments, Inc., GENOMETRIX and certain others, dated May 28, 1993 and amended November 5,
1993 to read:

“the system developed by the PARTIES as generally described in the AWARD proposal
for detecting hybridization of target DNA/RNA to known DNA/RNA, PNA or other nucleic
acid analog probes. The system will be used only for high and/or low resolution
sequence determination and will consist of a microfabricated semiconductor device
(“GENOSENSOR CHIP” or “CHIP”) designed to be used with an array of probes attached
to a solid support, means for exposing the array of probes to target DNA/RNA (the
sample), means for detecting whether or not (and where) hybridization has occurred
and means for reporting the results. The solid support can be the GENOSENSOR CHIP
itself or a separable support.”

     1.9 “6394L Agreement” shall mean this Agreement for the intellectual property related to
M.I.T. Case 6394L and listed in Appendices A and B.

     1.10 “5722L Agreement” shall mean a license agreement by and between M.I.T. and LICENSEE for
intellectual property related to M.I.T. Case 5722L and M.LT. Case 6838L, and executed on the
Effective Date of this Agreement.

SECTION 2. GRANT

     2.1 M.I.T. hereby grants to LICENSEE the right and license in the TERRITORY for the FIELD OF
USE to practice under the PATENT RIGHTS and, to the extent not prohibited by other patents, to
make, have made, use, lease, sell and import LICENSED PRODUCTS and to practice the LICENSED
PROCESSES, until the end of the term for which the PATENT RIGHTS are granted unless this Agreement
shall be sooner terminated according to the terms hereof.

     2.2 LICENSEE agrees that LICENSED PRODUCTS leased or sold in the United States shall be
manufactured substantially in the United States.

     2.3 In order to establish a period of exclusivity for LICENSEE, M.I.T. hereby agrees that it
shall not grant any other license to make, have made, use, lease, sell or import LICENSED PRODUCTS
or to utilize LICENSED PROCESSES in the TERRITORY for the FIELD OF USE during the period of time
commencing with the Effective Date of this Agreement and terminating with the expiration of ten
(10) years after the Effective Date of this Agreement. If at the end of the exclusive period,
LICENSEE has achieved all milestones within this agreement and has not

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breached this agreement, M.I.T. shall negotiate to extend the exclusive period, such
negotiations shall be in good faith.

     2.4 At the end of the exclusive period, the license granted hereunder shall become
nonexclusive and shall extend to the end of the term or terms for which any PATENT RIGHTS are
issued, unless sooner terminated as hereinafter provided.

     2.5 M.I.T., HARC, and BCM reserve the right to practice under the PATENT RIGHTS for
noncommercial research purposes.

     2.6 LICENSEE shall have the right to enter into sublicensing agreements for the rights,
privileges and licenses granted hereunder only during the exclusive period of this Agreement. Such
sublicenses may extend past the expiration date of the exclusive period of this Agreement, but any
exclusivity of such sublicenses shall expire upon the expiration of LICENSEE’s exclusivity. Upon
any termination of this Agreement, sublicensees’ rights shall also terminate, subject to Article
13.6 hereof.

     2.7 LICENSEE agrees that any sublicenses granted hereunder by it shall provide that the
obligations to M.I.T. of Articles 2, 5, 7, 8, 9, 10, 12, 13, and 15 of this Agreement shall be
binding upon the sublicensee as if it were a party to this Agreement. LICENSEE further agrees to
attach copies of these Articles to sublicense agreements.

     2.8 LICENSEE agrees to forward to M.I.T. a copy of any and all sublicense agreements promptly
upon execution by the parties.

     2.9 LICENSEE shall not receive from sublicensees anything of value in lieu of cash payments in
consideration for any sublicense under this Agreement, without the express prior written permission
of M.I.T., which shall not be unreasonably withheld, provided M.I.T. receives its share of value.

     2.10 The license granted hereunder shall not be construed to confer any rights upon LICENSEE
by implication, estoppel or otherwise as to any technology not specifically set forth in Appendices
A and B hereof or not otherwise within the definition of PATENT RIGHTS.

SECTION 3. DUE DILIGENCE

     3.1 LICENSEE shall use its commercially reasonable best efforts to bring one or more LICENSED
PRODUCTS or LICENSED PROCESSES to market through a thorough, vigorous and diligent program for
exploitation of the PATENT RIGHTS and to continue active,

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diligent marketing efforts for one or more LICENSED PRODUCTS or LICENSED PROCESSES throughout
the life of this Agreement.

     3.2 In addition, LICENSEE shall adhere to the following milestones.

	 	(a)	 	LICENSEE shall deliver to M.I.T. on or before January 1 of each
year of this license a business plan showing the amount of money, number and
kind of personnel and time budgeted and planned for each phase of development
of the LICENSED PRODUCTS and LICENSED PROCESSES.
	 
	 	(b)	 	LICENSEE shall make NET SALES of Licensed Products under M.I.T.
Case 6394L according to the following schedule:

	 	 	 	 	 
	1997
	 	$	*	 
	1998
	 	$	*	 
	1999 and each year thereafter
	 	$	*	 

     3.3 LICENSEE’S failure to perform in accordance with Paragraphs 3.1 and 3.2 above shall be
grounds for M.I.T. to terminate this Agreement pursuant to Paragraph 13.3 hereof.

     3.4 In addition, in order to maintain exclusive rights to the PATENT RIGHTS, LICENSEE shall
make NET SALES of Licensed Products relating to M.I.T. Case 6394L according to the following
schedule:

	 	 	 	 	 
	1997
	 	$	*	 
	1998
	 	$	*	 
	1999 and each year thereafter
	 	$	*	 

     3.5 LICENSEE’s failure to perform in accordance with Article 3.4 above shall be grounds for
M.I.T. upon written notice to terminate the exclusive provisions of this Agreement and to convert
the license granted by this Agreement to nonexclusive.

SECTION 4. ROYALTIES

     4.1 For the rights, privileges and license granted hereunder, LICENSEE shall pay royalties to
M.I.T. in the manner hereinafter provided to the end of the term of the PATENT RIGHTS or if earlier
until this Agreement shall be terminated:

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	 	(a)	 	Shares of common stock of LICENSEE equal to * (*%)
of the total outstanding common and preferred shares of LICENSEE. Said shares
shall be due within thirty (30) days of LICENSEE’s raising *
($*), cumulative of equity financing and shall be transferred to M.I.T.
at no charge to M.I.T. M.I.T. agrees to make to the LICENSEE customary
representations required of equity investors which have equity in LICENSEE.
Thereafter, no additional shares shall be due to M.I.T., provided that in
subsequent rounds of financing, M.I.T. shall have the right to invest in that
number of additional shares of common or preferred stock of the LICENSEE as are
issued by the LICENSEE in any subsequent financing in an amount equal to the
percentage of the outstanding Common Stock owned by M.I.T. immediately prior to
such financing provided that for purposes of determining such percentage, any shares of convertible preferred stock shall be included on an as converted
basis provided, however, in any event, M.I.T.’s right of participation shall
not apply to any issuance of shares of capital stock or grant of an option or
other right to purchase shares of capital stock to employees, directors,
officers, advisors or consultants of or to LICENSEE or in connection with
license, joint venture, corporate partnering or research and development
agreement or equipment or lease financing arrangements. M.I.T.’s right of
purchase shall be at the same price payable by other investors in such
financing. LICENSEE shall provide M.I.T. written notice of such a financing
and the purchase terms and M.I.T. shall have ten (10) business days to elect by
written notice to the LICENSEE to participate in such financing. M.I.T. shall
be required in the event of its participation to make customary investment
representations in connection with such purchase, including meeting any
accreditation or suitability standards imposed by federal or state securities
law. The right of purchase set forth herein shall not apply to any securities
offered in a public offering and shall terminate upon the consummation of an
initial public offering of the LICENSEE registered under the Securities Act of
1933. This stock provision applies in the aggregate to the funds raised under
the 5722L Agreement and to funds raised under this Agreement, and the funds
raised under the now terminated Agreement dated May 27, 1994.
	 
	 	(b)	 	Running Royalties in an amount equal to * (*%) of
the NET SALES of the LICENSED PRODUCTS and LICENSED PROCESSES sold by the
LICENSEE during the period of this Agreement.
	 
	 	(c)	 	* (*%) of any sublicense fee received by LICENSEE
from a sublicensee during the period of this Agreement.
	 
	 	(d)	 	* (*%) of any running and/or minimum royalty
received by LICENSEE from a sublicensee during the period of this Agreement.
In no event shall the amount due M.I.T. under the above provision be less than
* (*%) or more than * (*%) of the NET SALES of

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	 	 	 	the LICENSED PRODUCTS and LICENSED PROCESSES sold by said sublicensee.

     4.2 All payments due hereunder shall be paid in full, without deduction of taxes or other fees
which may be imposed by any government and which shall be paid by LICENSEE.

     4.3 No multiple royalties shall be payable because any LICENSED PRODUCT, its manufacture, use,
lease, sale or import are or shall be covered by more than one PATENT RIGHTS patent application
and/or PATENT RIGHTS patent licensed under this Agreement.

     4.4 If LICENSEE pays royalties to a third party for patents necessary to the manufacture, use
or sale of a LICENSED PRODUCT or LICENSED PROCESS, then LICENSEE may
credit * (*%) of
the third party royalties paid against the royalties otherwise due to M.I.T. for the LICENSED
PRODUCT or LICENSED PROCESS under Article 4.1(b) above; provided, however, that the royalties paid
to M.I.T. for that LICENSED PRODUCT or LICENSED PROCESS shall not be
less than *  (*%)
of those otherwise due under Article 4.1 above.

     4.5 Royalty payments shall be paid in United States dollars in Cambridge, Massachusetts, or at
such other place as M.I.T. may reasonably designate consistent with the laws and regulations
controlling in any foreign country. If any currency conversion shall be required in connection
with the payment of royalties hereunder, such conversion shall be made by using the exchange rate
prevailing at the Chase Manhattan Bank (N.A.) on the last business day of the calendar semiannual
reporting period to which such royalty payments relate.

SECTION 5. REPORTS AND RECORDS

     5.1 LICENSEE shall keep full, true and accurate books of account containing all particulars
that may be necessary for the purpose of showing the amounts payable to M.I.T. hereunder. Said
books of account shall be kept at LICENSEE’s principal place of business or the principal place of
business of the appropriate division of LICENSEE to which this Agreement relates. Said books and
the supporting data shall be open at all reasonable times and upon reasonable notice for three (3)
years following the end of the calendar year to which they pertain, to the inspection of M.I.T. or
by an independent auditor selected by M.I.T. who is acceptable to LICENSEE (which acceptance shall
not be unreasonably withheld) for the purpose of verifying LICENSEE’s royalty statement or
compliance in other respects with this

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Agreement. Should such inspection lead to the discovery of a greater than ten percent (10%)
discrepancy in reporting to M.I.T.’s detriment, LICENSEE agrees to pay the full cost of such
inspection. M.I.T. shall not inspect such books more than once in any twelve (12) month period and
any inspection following termination of this Agreement shall be conducted within twelve (12) months
of the effective date of such termination.

     5.2 Before the first commercial sale by LICENSEE or any sublicensee of a LICENSED PRODUCT or
LICENSED PROCESS, LICENSEE shall submit the reports due under Article 3.2(a) on January 1 of each
year. After the first commercial sale of a LICENSED PRODUCT or LICENSED PROCESS, LICENSEE, within
sixty (60) days after June 30 and December 31, of each year, shall deliver to M.I.T. true and
accurate reports, giving such particulars of the business conducted by LICENSEE and its
sublicensees during the preceding six-month period under this Agreement as shall be pertinent to a
royalty accounting hereunder. These shall include at least the following:

	 	(a)	 	number of LICENSED PRODUCTS manufactured and sold by LICENSEE
and all sublicensees;
	 
	 	(b)	 	total billings for LICENSED PRODUCTS sold by LICENSEE and all
sublicensees;
	 
	 	(c)	 	accounting for all LICENSED PROCESSES used or sold by LICENSEE
and all sublicensees;
	 
	 	(d)	 	deductions applicable as provided in Article 1.5;
	 
	 	(e)	 	royalties due on additional payments from sublicensees under
Article 4.1(c) and 4.1(d).
	 
	 	(f)	 	total royalties due; and
	 
	 	(g)	 	names and addresses of all sublicensees of LICENSEE.

     5.3 With each such report submitted, LICENSEE shall pay to M.I.T. the royalties due and
payable under this Agreement. If no royalties shall be due, LICENSEE shall so report.

     5.4 On or before the ninetieth (90th) day following the close of LICENSEE’s fiscal year,
LICENSEE shall provide M.I.T. with LICENSEE’s certified financial statements for the preceding
fiscal year including, at a minimum, a Balance Sheet and an Operating Statement.

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     5.5 The royalty payments set forth in this Agreement and amounts due under Article 6 shall, if
overdue, bear interest until payment at a per annum rate * (*%) above the prime rate in
effect at the Chase Manhattan Bank (N.A.) on the due date or the highest rate allowed by law,
whichever is less on the due date. The payment of such interest shall not foreclose M.I.T. from
exercising any other rights it may have as a consequence of the lateness of any payment.

SECTION 6. PATENT PROSECUTION

     6.1 M.I.T. shall apply for, seek prompt issuance of, and maintain during the term of this
Agreement the PATENT RIGHTS in the United States and in the foreign countries listed in Appendix B
hereto. Appendix B may be amended by verbal agreement of both parties, such agreement to be
confirmed in writing within ten (10) days. The prosecution, filing and maintenance of all PATENT
RIGHTS patents and applications shall be the primary responsibility of M.I.T.; provided, however,
LICENSEE shall have reasonable opportunities to advise M.I.T. and shall cooperate with M.I.T. in
such prosecution, filing and maintenance. M.I.T. shall promptly provide LICENSEE with (i) a copy
of all applications filed with the various patent offices (together with a translation thereof if
available and if requested by LICENSEE); (ii) a copy of each communication from a patent office
relating to each such application (together with a translation thereof if available and if
requested by LICENSEE); and, (iii) a copy of each response to the patent office communication
relating to each such application (together with a translation thereof if available and if
requested by LICENSEE). At LICENSEE’s request, LICENSEE shall have the right to file, prosecute
and maintain the patent applications for M.I.T. Case No. Case 6394L “Methods And Apparatus For
Detecting And Imaging Particles” in M.I.T.’s name in such foreign jurisdictions other than those
listed on Appendix B as it may deem appropriate, at LICENSEE’s own cost and expense. M.I.T. shall
cooperate with LICENSEE in any such filing, prosecution and maintenance.

     6.2 Payment of all fees and costs relating to the filing, normal prosecution, and maintenance
of the PATENT RIGHTS shall be the responsibility of LICENSEE, whether such fees and costs were
incurred before or after the date of this Agreement. Normal prosecution shall not include appeals,
interferences and oppositions unless separately agreed to by

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LICENSEE in each instance before expense therefor is incurred. M.I.T. is not obligated to pay
for such appeals, interferences and oppositions.

SECTION 7. INFRINGEMENT

     7.1 Each party shall inform the other party promptly in writing of any alleged infringement of
the PATENT RIGHTS by a third party and of any available evidence thereof.

     7.2 During the term of this Agreement, M.I.T. shall have the right, but shall not be
obligated, to prosecute at its own expense all infringements of the PATENT RIGHTS and, in
furtherance of such right, LICENSEE hereby agrees that M.I.T. may include LICENSEE as a party
plaintiff if required by law in any such suit, without expense to LICENSEE. The total cost of any
such infringement action commenced or defended solely by M.I.T. shall be borne by M.I.T. and M.I.T.
shall keep any recovery or damages for past infringement derived therefrom.

     7.3 If within six (6) months after having been notified of any alleged infringement, M.I.T.
shall have been unsuccessful in persuading the alleged infringer to desist and shall not have
brought and shall not be diligently prosecuting an infringement action, or if M.I.T. shall notify
LICENSEE at any time prior thereto of its intention not to bring suit against any alleged infringer
in the TERRITORY for the FIELD OF USE, then, and in those events only, LICENSEE shall have the
right, but shall not be obligated, to prosecute at its own expense any infringement of the PATENT
RIGHTS in the TERRITORY for the FIELD OF USE, and LICENSEE may, for such purposes, use the name of
M.I.T. as party plaintiff if required by law; provided, however, that such right to bring such an
infringement action shall remain in effect only for so long as the license granted herein remains
exclusive. No settlement, consent judgment or other voluntary final disposition of the suit may be
entered into without the consent of M.I.T. which consent shall not unreasonably be withheld or
delayed, but nothing herein shall require LICENSEE to continue prosecuting any such suit beyond the
time which LICENSEE deems, in its sole judgment, desirable. LICENSEE shall indemnify M.I.T. as
appropriate, against any order for costs that may be made against M.I.T. in such proceedings.

     7.4 In the event that LICENSEE shall undertake the enforcement and/or defense of the PATENT
RIGHTS by litigation, LICENSEE may withhold up to * (*%) of the payments otherwise
thereafter due M.I.T. under Article 4 hereof and apply the same toward reimbursement of up to half
of LICENSEE’s expenses, including reasonable attorneys’ fees, in

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connection therewith. Any recovery of damages by LICENSEE for each such suit shall be applied
first in satisfaction of any unreimbursed expenses and legal fees of LICENSEE relating to such
suit, and next toward reimbursement of M.I.T. for any payments under Article 4 past due or withheld
and applied pursuant to this Article 7. The balance remaining from any such recovery shall be
divided equally between LICENSEE and M.I.T.

     7.5 In the event that a declaratory judgment action alleging invalidity or noninfringement of
any of the PATENT RIGHTS shall be brought against LICENSEE, M.I.T. at its sole option, shall have
the right, within thirty (30) days after commencement of such action, to intervene and take over
the sole defense of the action at its own expense.

     7.6 In any infringement suit as either party may institute to enforce the PATENT RIGHTS
pursuant to this Agreement, the other party hereto shall, at the request and expense of the party
initiating such suit, cooperate in all respects and, to the extent possible, have its employees
testify when requested and make available relevant records, papers, information, samples,
specimens, and the like.

     7.7 LICENSEE, during the exclusive period of this Agreement, shall have the sole right in
accordance with the terms and conditions herein to sublicense any alleged infringer in the
TERRITORY for the FIELD OF USE for future use of the PATENT RIGHTS.

SECTION 8. PRODUCT LIABILITY AND WARRANTIES

     8.1 LICENSEE shall at all times during the term of this Agreement and thereafter, indemnify,
defend and hold M.I.T., HARC, and BCM, their trustees, directors, officers, employees and
affiliates, harmless against all claims, proceedings, demands and liabilities of any kind
whatsoever, including legal expenses and reasonable attorneys’ fees, arising out of the death of or
injury to any person or persons or out of any damage to property, resulting from the production,
manufacture, sale, use, lease, consumption or advertisement of the LICENSED PRODUCT(s) and/or
LICENSED PROCESS(es) by LICENSEE.

     8.2 Prior to the first use of a LICENSED PRODUCT and/or LICENSED PROCESS for a commercial
application involving human subjects LICENSEE shall obtain and carry in full force and effect
commercial, general liability insurance which shall protect LICENSEE and M.I.T., HARC, and BCM with
respect to events covered by Article 8.1 above. Such insurance shall be written by a reputable
insurance company authorized to do business in the

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Commonwealth of Massachusetts, shall list M.I.T., HARC, and BCM as additional named insured
thereunder, shall be endorsed to include product liability coverage and shall require thirty (30)
days written notice to be given to M.I.T., HARC, and BCM prior to any cancellation or material
change thereof. The limits of such insurance shall not be less than *
($*) per occurrence with an aggregate of * ($*) for personal
injury or death, and * ($*) per occurrence with an aggregate of
* ($*) for property damage. LICENSEE shall provide M.I.T., HARC, and BCM
with Certificates of Insurance evidencing the same.

     8.3 EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, M.I.T., HARC, and BCM, THEIR
TRUSTEES, DIRECTORS, OFFICERS, EMPLOYEES, AND AFFILIATES MAKE NO REPRESENTATIONS AND EXTEND NO
WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF
MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, VALIDITY OF PATENT RIGHTS CLAIMS, ISSUED OR
PENDING, AND THE ABSENCE OF LATENT OR OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE. NOTHING IN THIS
AGREEMENT SHALL BE CONSTRUED AS A REPRESENTATION MADE OR WARRANTY GIVEN BY M.I.T., HARC, AND BCM
THAT THE PRACTICE BY LICENSEE OF THE LICENSE GRANTED HEREUNDER SHALL NOT INFRINGE THE PATENT RIGHTS
OF ANY THIRD PARTY. IN NO EVENT SHALL M.I.T., HARC, AND BCM, THEIR TRUSTEES, DIRECTORS, OFFICERS,
EMPLOYEES AND AFFILIATES BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING
ECONOMIC DAMAGE OR INJURY TO PROPERTY AND LOST PROFITS, REGARDLESS OF WHETHER M.I.T., HARC, OR BCM
SHALL BE ADVISED, SHALL HAVE OTHER REASON TO KNOW, OR IN FACT SHALL KNOW OF THE POSSIBILITY.

     8.4 M.I.T. warrants and represents that it is an owner of the right, title in and to the
inventions included in the PATENT RIGHTS and that it has acquired the right to grant licenses to
the patent applications and patents included in the PATENT RIGHTS of the scope herein granted.
M.I.T.’s liability under this provision shall be limited to the total sum paid to M.I.T. by
LICENSEE under this Agreement.

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SECTION 9. EXPORT CONTROLS

          It is understood that M.I.T. is subject to United States laws and regulations controlling the
export of technical data, computer software, laboratory prototypes and other commodities (including
the Arms Export Control Act, as amended and the Export Administration Act of 1979), and that its
obligations hereunder are contingent on compliance with applicable United States export laws and
regulations. The transfer of certain technical data and commodities may require a license from the
cognizant agency of the United States Government and/or written assurances by LICENSEE that
LICENSEE shall not export data or commodities to certain foreign countries without prior approval
of such agency. M.I.T. neither represents that a license shall not be required nor that, if
required, it shall be issued.

SECTION 10. NON-USE OF NAMES

          Except as otherwise required by law LICENSEE shall not use the names or trademarks of the
Massachusetts Institute of Technology, Lincoln Laboratory, HARC or BCM, nor any adaptation thereof,
nor the names of any of their employees, in any advertising, promotional or sales literature
without prior written consent obtained from M.I.T., or said employee, in each case, except that (a)
LICENSEE may state that it is licensed by M.I.T. under one or more of the patents and/or
applications comprising the PATENT RIGHTS and (b) LICENSEE may use the name of any employee of
M.I.T., Lincoln Laboratory, HARC or BCM who is a consultant to and/or member of an advisory board
of LICENSEE, with the permission of such consultant or advisory board member, and making clear
their affiliation with LICENSEE.

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SECTION 11. ASSIGNMENT

          This Agreement is not assignable and any attempt to do so shall be void, except that any
LICENSEE may assign this Agreement to any person, firm or corporation succeeding to that portion of
its business to which this Agreement pertains as a result of sale, merger, consolidation,
reorganization or otherwise provided such person, firm or corporation shall, without delay, accept
in writing the provisions of this Agreement and agree to become in all respects bound thereby in
the place and stead of the assigning party and provided further that LICENSEE may assign this
Agreement to (or grant an exclusive license to) any special purpose entity, partnership or joint
venture in which LICENSEE has an interest or the rights to acquire developed technology.

SECTION 12. DISPUTE RESOLUTION

     12.1 Except for the right of either party to apply to a court of competent jurisdiction for a
temporary restraining order, a preliminary injunction, or other equitable relief to preserve the
status quo or prevent irreparable harm, any and all claims, disputes or controversies arising
under, out of, or in connection with the Agreement, including any dispute relating to patent
validity or infringement, which the parties shall be unable to resolve within sixty (60) days shall
be mediated in good faith. The party raising such dispute shall promptly advise the other party of
such claim, dispute or controversy in a writing which describes in reasonable detail the nature of
such dispute. If the parties are unable to resolve such dispute within such sixty (60) day period,
either party may demand mediation by written notice to the other party. By not later than ten (10)
business days after the recipient has received such demand for mediation, each party shall have
selected for itself a representative who shall have the authority to bind such party, and shall
additionally have advised the other party in writing of the name and title of such representative.
By not later than twenty (20) business days after the date of such demand for mediation, the party
against whom the dispute shall be raised shall select a mediation firm in the Boston area which is
acceptable to the other party (which acceptance shall not be unreasonably withheld) and such
representatives shall schedule a date with such film for a mediation hearing.

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Within thirty (30) days after the selection of the mediation firm, the parties shall enter
into good faith mediation and shall share the costs equally. If the representatives of the parties
have not been able to resolve the dispute within fifteen (15) business days after such mediation
hearing, the parties shall have the right to pursue any other remedies legally available to resolve
such dispute in either the Courts of the Commonwealth of Massachusetts or in the United States
District Court for the District of Massachusetts, to whose jurisdiction for such purposes M.I.T.
and LICENSEE each hereby irrevocably consents and submits.

     12.2 Notwithstanding the foregoing, nothing in this Article shall be construed to waive any
rights or timely performance of any obligations existing under this Agreement.

SECTION 13. TERMINATION

     13.1 If LICENSEE shall cease to carry on its business with respect to the rights granted in
this Agreement, this Agreement shall terminate upon notice by M.I.T.

     13.2 Should LICENSEE fail to make any payment whatsoever due and payable to M.I.T., M.I.T.
shall have the right to terminate this Agreement effective on thirty (30) days’ notice, unless
LICENSEE shall make all such payments to M.I.T. within said thirty (30) day period; provided,
however, that if LICENSEE in good faith shall dispute all or any part of such payment and shall
invoke the provisions of Article 12 hereof, M.I.T. shall have no right to terminate this Agreement
until M.I.T. shall have a favorable result from any such mediation and LICENSEE shall thereafter
continue to refuse to make any such payment. Upon the expiration of the thirty (30) day period, if
LICENSEE shall not have made all such payments to M.I.T., the rights, privileges and license
granted hereunder shall automatically terminate.

     13.3 Upon any material breach or default of this Agreement by LICENSEE (excluding Articles 3),
other than those occurrences set out in Articles 13.1 and 13.2 hereinabove, which shall always take
precedence in that order over any material breach or default referred to in this Article 13.3,
M.I.T. shall have the right to terminate this Agreement and the rights, privileges and license
granted hereunder effective on ninety (90) days’ notice to LICENSEE. Upon any material breach or
default of Article 3, M.I.T. shall have the right to terminate LICENSEE’s rights as provided in
Article 3. Such termination shall become automatically effective unless LICENSEE shall have cured
or have begun substantial efforts toward curing any such breach or default prior to the expiration
of the ninety (90) day period. If, prior to the expiration of the

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ninety (90) day notice from M.I.T. of intent to terminate LICENSEE has begun substantial
efforts toward curing such breach or default and has documented such efforts in writing to M.I.T.,
LICENSEE shall have an additional ninety (90) days to complete the cure. If the breach or default
is not cured within a total of one hundred eighty (180) days from the original notice of intent to
terminate, this Agreement shall then terminate.

     13.4 LICENSEE shall have the right to terminate this Agreement at any time on three (3)
months’ notice to M.I.T., and upon payment of all amounts due M.I.T. through the effective date of
the termination.

     13.5 Upon termination of this Agreement for any reason, nothing herein shall be construed to
release either party from any obligation that matured prior to the effective date of such
termination; and Articles 1, 8, 9, 10, 13.5, 13.6, and 16 shall survive any such termination.
LICENSEE and any sublicensee thereof may, however, after the effective date of such termination,
sell all LICENSED PRODUCTS, and complete LICENSED PRODUCTS in the process of manufacture at the
time of such termination and sell the same, provided that LICENSEE shall make the payments to
M.I.T. as required by Article 4 of this Agreement and shall submit the reports required by Article
5 hereof.

     13.6 No sublicense agreement which may have been entered into by LICENSEE hereunder prior to
any surrender or termination of this Agreement or of any of the licenses herein granted under the
provisions of this Article 13 shall be affected by any surrender or termination of the licenses
herein granted except that M.I.T. shall be substituted for LICENSEE in all of such sublicense
agreements and LICENSEE shall be discharged of all obligations accrued or to accrue thereafter
under all such sublicense agreements and under this Agreement with respect to such sublicense
agreements.

SECTION 14. PAYMENTS, NOTICES AND OTHER COMMUNICATIONS

          Any payment, notice or other communication pursuant to this Agreement shall be sufficiently
made or given if sent to such party by certified first class mail, postage prepaid, or nationally
recognized air carrier service, addressed to it at its address below or as it shall designate by
written notice given to the other party.

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          All such payments, notices or communications shall be deemed given on the date of actual
receipt or, if earlier, five (5) business days after sending in accordance with this Article 15.
All notices hereunder shall be in writing.

          In the case of M.I.T.:

Director

Technology Licensing Office

Massachusetts Institute of Technology

77 Massachusetts Avenue, Room E32-300

Cambridge, Massachusetts 02139

          In the case of LICENSEE:

President

GENOMETRIX, INCORPORATED

3608 Research Forest Drive, Suite B-7

The Woodlands, TX 77381

SECTION 15. MISCELLANEOUS PROVISIONS

     15.1 This Agreement shall be construed, governed, interpreted and applied in accordance with
the laws of the Commonwealth of Massachusetts, U.S.A., except that questions affecting the
construction and effect of any patent shall be determined by the law of the country in which the
patent was granted.

     15.2 The parties hereto acknowledge that this Agreement sets forth the entire Agreement and
understanding of the parties hereto as to the subject matter hereof, and shall not be subject to
any change or modification except by the execution of a written instrument subscribed to by the
parties hereto.

     15.3 The provisions of this Agreement are severable, and in the event that any provisions of
this Agreement shall be determined to be invalid or unenforceable under any controlling body of the
law, such invalidity or unenforceability shall not in any way affect the validity or enforceability
of the remaining provisions hereof.

     15.4 LICENSEE agrees to mark the LICENSED PRODUCTS sold in the United States with all
applicable United States patent numbers to the extent reasonably practical. All

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LICENSED PRODUCTS shipped to or sold in other countries shall be marked in such a manner as to
conform with the patent laws and practice of the country of manufacture or sale.

     15.5 The failure of either party to assert a right hereunder or to insist upon compliance with
any term or condition of this Agreement shall not constitute a waiver of that right or excuse a
similar subsequent failure to perform any such term or condition by the other party.

     15.6 The headings and captions of the various Articles of this Agreement are for convenience
of reference only and shall in no way modify or affect the meaning or construction of any of the
terms or provisions hereof.

          IN WITNESS WHEREOF, the parties have duly executed this Agreement the day and year set forth
below.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MASSACHUSETTS INSTITUTE OF
TECHNOLOGY
 	 	 	 	GENOMETRIX, INCORPORATED	 	 
	 
	By

	 	 	 	 	 	 	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name	 	 	 	 	 	 	 	Name	 	 	 	 
	 

	 	Title
	 	 	 	 	 	 	 	Title	 	 	 	 
	 

	 	Date
	 	 	 	 	 	 	 	Date	 	 	 	 

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APPENDIX A

UNITED STATES PATENT RIGHTS

M.I.T.
Case No. Case 6394L

“Methods And Apparatus For Detecting And Imaging Particles Using Large Format Solid State Imaging Techniques”

By Mitchell Eggers, Daniel Ehrlich, Michael Hogan, Mark Hollis, Bernard Kosicki, and Robert Reich

that includes patent application

USSN 08/201,651

“Methods and Apparatus for Detecting and Imaging Particles”

By Mitchell Eggers, Daniel Ehrlich, Michael Hogan, Mark Hollis, Bernard Kosicki, and Robert Reich and Barry Burke

Filed February 25, 1994

USSN 08/601,838

“Lensless Detection and Imaging of Molecular Substances”

By Mitchell Eggers, Daniel Ehrlich, Michael Hogan, Mark Hollis, Bernard Kosicki, and Robert Reich and Barry Burke

Filed February 15, 1996

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APPENDIX B

1. Foreign patent applications and patents within the PATENT RIGHTS as of Effective Date:

M.I.T.
Case No. Case 6394L

“Methods And Apparatus For Detecting And Imaging Particles Using Large Format Solid State Imaging Techniques”

By Mitchell Eggers, Daniel Ehrlich, Michael Hogan, Mark Hollis, Bernard Kosicki, and Robert Reich

that includes patent application

PCT/US95/01725, filed February 9, 1995 (based on USSN 08/201,651)

	 	Designating: 	 	 	Canada, Japan and Europe (Austria, Belgium, Switzerland,
Germany, Denmark, Spain, France, United Kingdom, Greece, Ireland,
Italy, Luxembourg, Monaco, Netherlands, Portugal, Sweden)

“Methods and Apparatus for Detecting and Imaging Particles”

By Mitchell Eggers, Daniel Ehrlich, Michael Hogan, Mark Hollis, Bernard Kosicki, and Robert Reich and Barry Burke

2. Foreign countries in which PATENT RIGHTS shall be filed, prosecuted and maintained in
accordance with Article 6:

For:

M.I.T. Case No. Case 6394L

“Methods And Apparatus For Detecting And Imaging Particles Using Large Format Solid State Imaging Techniques”

By Mitchell Eggers, Daniel Ehrlich, Michael Hogan, Mark Hollis, Bernard Kosicki, and Robert Reich

Canada, Japan and Europe (Austria, Belgium, Switzerland, Germany, Denmark, Spain,
France, United Kingdom, Greece, Ireland, Italy, Luxembourg, Monaco, Netherlands,
Portugal, Sweden)

NO ADDITIONAL COUNTRIES DESIGNATED OR FOREIGN FILINGS REQUESTED AS OF FEBRUARY 23, 1996.

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ATTACHMENT R

FIRST AMENDMENT

     This Agreement pertains to a License Agreement effective May 27, 1994 by and between the
MASSACHUSETTS INSTITUTE OF TECHNOLOGY (M.I.T.) and GENOMETRIX INCORPORATED (LICENSEE).

     WHEREAS, LICENSEE has been diligently soliciting equity financing for the purpose of
commercializing the technology licensed in the above-referenced License Agreement, and has
delivered documents to M.I.T. demonstrating their efforts; and

     WHEREAS, LICENSEE has raised Eight Hundred Thousand Dollars ($800,000) in equity financing to
date.

     NOW, THEREFORE, the parties hereby agree to modify the License Agreement by deleting paragraph
3.10 (a) in its entirety and substituting therefor the following:

3.10 In addition, in order to maintain exclusive rights to the PATENT RIGHTS relating to
MIT case 5722L, LICENSEE shall adhere to the following milestones:

	 	a.	 	LICENSEE shall raise One Million Five Hundred Thousand Dollars ($1,500,000) in
equity financing by January 31, 1996. Said financing to be used to commercialize
M.I.T. case 5722L

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MASSACHUSETTS INSTITUTE OF
TECHNOLOGY	 	 	 	GENOMETRIX, INCORPORATED	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By

	 	 	 	 	 	 	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name
	 	 	 	 	 	 	 	Name	 	 	 	 
	 

	 	Title
	 	 	 	 	 	 	 	Title	 	 	 	 
	 

	 	Date
	 	 	 	 	 	 	 	Date	 	 	 	 

 

 

Exhibit C

EXCLUSIVE LICENSE AGREEMENT

     This Exclusive License Agreement (hereinafter called “Agreement”), to be effective as of the
31st day of May, 1998 (hereinafter called “Agreement Date”), is by and between Baylor
College of Medicine (hereinafter called “BAYLOR”), a Texas nonprofit corporation having its
principal place of business at One Baylor Plaza, Houston, Texas 77030, and Genometrix, Inc, a
corporation organized under the laws of Delaware and having a principal place of business at 3608
Research Forest Drive, Suite B7, The Woodlands, Texas 77381, and its Affiliates (hereinafter,
collectively referred to as “GENOMETRIX”).

     WITNESSETH:

     WHEREAS, scientists at BAYLOR and GENOMETRIX have invented the Subject Technology (as defined
below) under and pursuant to that certain Collaboration Agreement dated May 28, 1993, as amended
November 5, 1993, among Houston Advanced Research Center (hereinafter called “HARC”), Massachusetts
Institute of Technology (hereinafter called “MIT”), BAYLOR, Beckman Instruments, Inc. (hereinafter
called “BECKMAN”), Microlab Technologies, Inc., Genosys Biotechnologies, Inc., Triplex
Pharmaceutical Corporation, Laboratories for Genetic Services and GENOMETRIX (hereinafter called
“the Collaboration Agreement”) which agreement includes as Appendix C thereto the Technology
Transfer and Royalty-Sharing Agreement dated May 28, 1993 among HARC, MIT and BAYLOR (the “Tech
Transfer Agreement”) under which inventions made by the parties thereto are jointly pooled and
administered, a copy of which agreements are attached hereto as Exhibit A; and

     WHEREAS, the aforementioned inventors have each assigned all their respective rights to the
invention to his/her respective employers; and

     WHEREAS, pursuant to the Collaboration Agreement, BAYLOR notified MIT of the making of the
invention of the Subject Technology which is defined in the Collaboration Agreement as a Foreground
Invention, and MIT by its letter of February 6, 1996, notified BECKMAN of the disclosure by BAYLOR
of the making of the invention of said Subject Technology; and

     WHEREAS, BECKMAN by its letter of September 10, 1996, notified MIT that BECKMAN had elected
not to seek patent protection for the subject matter of the Subject Technology, a copy of which
letters are attached as Exhibit B; and

     WHEREAS, pursuant to that certain Letter Agreement among BAYLOR, MIT and HARC dated April, 30
1997, a copy of which is attached hereto as Exhibit C, BAYLOR, MIT and HARC agreed: (i) that the
Subject Technology is expressly excluded from the Tech Transfer Agreement; and (ii) that BAYLOR may
in accordance therewith file patent applications on the Subject Technology and execute an exclusive
license agreement with GENOMETRIX with respect to BAYLOR’s rights in and to the Subject Technology;
and

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     WHEREAS, BAYLOR is willing to grant an exclusive, worldwide, perpetual license to BAYLOR’s
rights in and to the Subject Technology to GENOMETRIX on the terms set forth herein; and

     WHEREAS, GENOMETRIX desires to obtain said exclusive license to said rights under the Subject
Technology.

     NOW, THEREFORE, for and in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereto
expressly agree as follows:

SECTION 1. DEFINITIONS AS USED HEREIN

     1.1 The term “Subject Technology” shall mean United States Patent Application Serial No.
08/749,967, entitled “Integrated Nucleic Acid Hybridization Devices Based Upon Active Surface
Chemistry,” which was filed on November 14, 1996, on which Michael Hogan, Ph.D., Tom Powdrill,
Ph.D., Bonnie Iverson, Du Xiao and Nobuko Akiyama, employees of BAYLOR (hereinafter collectively
called “the Baylor Inventors”) and Arnab Mallik, an employee of GENOMETRIX, are listed as
inventors, together with all other pending United States patent applications or parts thereof and
any United States patent which issues from any such pending applications and any and all divisions,
reissues, re-examinations, renewals, continuations, continuations-in-part, and extensions thereof,
and all other counterpart, pending or issued patents in all other countries.

     1.2 The term “Licensed Product(s)” shall mean all products that incorporate, utilize or are
made with the use of the Subject Technology.

     1.3 The term “Research Field” shall mean the research market.

     1.4 The term “Clinical Field” shall mean the clinical diagnostic market.

     1.5 The term “Net Sales” shall mean the gross amount of monies or cash equivalent or other
consideration which is paid by unrelated third parties to GENOMETRIX for the Licensed Products by
sale or other mode of transfer, less all trade, quantity and cash discounts actually allowed,
credits, and allowances actually granted on account of rejections, returns or billing errors,
duties, transportation and insurance, taxes and other governmental charges actually paid. The term
“Net Sales” in the case of non-cash sales, shall mean the fair market value of all equivalent or
other consideration received by GENOMETRIX for the Licensed Products.

     1.6 The term “Affiliates” shall mean any corporation, partnership, joint venture or other
entity of which the common stock or other equity ownership thereof is twenty five percent (25%) or
more owned by GENOMETRIX.

     1.7 The term “the Parties” shall mean GENOMETRIX and BAYLOR.

-3-

 

SECTION 2. GRANT OF LICENSE

     2.1 BAYLOR hereby grants to GENOMETRIX an exclusive, worldwide, perpetual right and license to
BAYLOR’s rights under the Subject Technology, with the right to grant sublicenses, to make, have
made, use, market, sell and offer to sell Licensed Products.

     2.2 The grant in Section 2.1 shall be further subject to and restricted by the following
reserved rights:

     (a) the use of the Subject Technology by BAYLOR, MIT and HARC for non-commercial
research, patient care, teaching and other educationally related purposes;

     (b) the use of the Subject Technology by the Baylor Inventors for non-commercial
research purposes at academic or research institutions;

     (c) the freedom from assertion with respect to any patents issued on the Subject
Technology in-so-far as the use of the Subject Technology relates to Genosensor Systems (as
defined in the Collaboration Agreement), specifically under and pursuant to Paragraph 2.3 of
the Collaboration Agreement; and

     (d) any non exclusive license of the Subject Technology that BAYLOR, MIT, GENOMETRIX or
any other party to the Collaboration Agreement is required by law or regulation to grant to
the United States of America or any agency thereof or to a foreign state pursuant to an
existing or future treaty with the United States of America.

SECTION 3. PAYMENTS

     3.1 As full consideration for the rights conveyed by BAYLOR under this Agreement, GENOMETRIX
shall pay BAYLOR a license fee of * ($*) to recover the costs of filing the provisional patent application on the
invention included within the Subject Technology upon reaching Net
Sales of *
($*).

     3.2 Should GENOMETRIX fail to make any payment whatsoever due and payable to BAYLOR hereunder,
BAYLOR may, at its sole option, terminate this Agreement as provided in Paragraph 6.2.

     3.3 All payments due hereunder are expressed in and shall be paid by check payable in United
States of America currency, without deduction of exchange, collection or other charges, to BAYLOR,
or to the account of BAYLOR at such other bank as BAYLOR may from time to time designate by notice
to GENOMETRIX.

     3.4 All payments shall be sent to the address listed in Paragraph 10.1.

SECTION 4. SUBLICENSES

     All sublicenses granted by GENOMETRIX of its rights hereunder shall be subject to the terms of
this Agreement. GENOMETRIX shall be responsible for its sublicensees and shall not

-4-

 

grant any rights which are inconsistent with the rights granted to and obligations of
GENOMETRIX hereunder. Any act or omission of a sublicensee which would be a breach of this
Agreement if performed by GENOMETRIX shall be deemed to be a breach by GENOMETRIX of this
Agreement. No such sublicense agreement shall contain any provision which would cause it to extend
beyond the term of this Agreement. GENOMETRIX shall give BAYLOR prompt notification of the identity
and address of each sublicensee with whom it concludes a sublicense agreement and shall supply
BAYLOR with a copy of each such sublicense agreement.

SECTION 5. PATENTS AND INFRINGEMENT

     5.1 GENOMETRIX agrees to pay all costs incident to the filing, prosecuting and maintaining of
the Subject Technology in the United States and elected foreign countries, and, any and all costs
incurred in filing continuations, continuations-in-part, divisionals or related applications
thereon and any reexamination or reissue proceedings thereof.

     5.2 In the event that GENOMETRIX decides not to: (i) continue prosecution of the Subject
Technology to issuance or (ii) maintain any United States or foreign issued patent on the Subject
Technology, GENOMETRIX shall timely notify BAYLOR in writing thereof in order that BAYLOR may
continue: (i) said prosecution of such patent applications or (ii) said maintenance of issued
patents, at its own expense. GENOMETRIX’s right under this Agreement to make, have made, use,
market, sell or offer to sell the Subject Technology under this patent shall immediately terminate
upon the giving of such notice. If GENOMETRIX fails to notify BAYLOR in sufficient time for BAYLOR
to assume said costs, GENOMETRIX shall be considered in default of this Agreement.

     5.3 BAYLOR agrees to keep GENOMETRIX fully informed, at GENOMETRIX’s expense, of all
prosecutions and other actions pursuant to this Section 5, except for applications/patents for
which GENOMETRIX elects to discontinue prosecution/maintenance, including submitting to GENOMETRIX
copies of all official actions and responses thereto.

     5.4 BAYLOR agrees to reasonably cooperate with GENOMETRIX to whatever extent is reasonably
necessary to procure the Subject Technology, including executing any and all documents reasonably
required to provide GENOMETRIX the full benefit of the license granted herein.

     5.5 Each Party shall promptly inform the other of any suspected infringement of any claims in
the Subject Technology or the misuse, misappropriation, theft or breach of confidence of other
proprietary rights in the Subject Technology by a third party, and with respect to such activities
as are suspected, GENOMETRIX shall have the right, but not the obligation, to institute an action
for infringement, misuse, misappropriation, theft or breach of confidence of the proprietary rights
against such third party. If GENOMETRIX fails to bring such an action or proceeding within a period
of three (3) months after receiving notice or otherwise having knowledge of such infringement, then
BAYLOR shall have the right, but not the obligation, to prosecute the same at its own expense.
Should either BAYLOR or GENOMETRIX commence suit under the provisions of this Paragraph 5.5 and
thereafter elect to abandon the same, it shall give timely notice to the other Party who may, if it
so desires, continue prosecution of such

-5-

 

action or proceeding. All recoveries, whether by judgment, award, decree or settlement, from
infringement or misuse of Subject Technology shall be apportioned as follows: the Party bringing
the action or proceeding shall first recover an amount equal to two (2) times the costs and
expenses incurred by such Party directly related to the prosecution of such action or proceeding
and the remainder shall be divided equally between GENOMETRIX and BAYLOR.

     5.6 Neither BAYLOR nor GENOMETRIX shall settle any action covered by Paragraph 5.5 without
first obtaining the consent of the other Party, which consent will not be unreasonably withheld.

     5.7 BAYLOR shall not be liable for any losses incurred as the result of an action for
infringement brought against GENOMETRIX as the result of GENOMETRIX’s exercise of any right granted
under this Agreement. The decision to defend or not defend shall be in GENOMETRIX’s sole
discretion.

SECTION 6. TERM AND TERMINATION

     6.1 Unless earlier terminated as hereinafter provided, GENOMETRIX shall have a perpetual,
royalty-free license to the Subject Technology.

     6.2 In the event of default or failure by GENOMETRIX to perform any of the terms, covenants or
provisions of this Agreement, GENOMETRIX shall have thirty (30) days after the giving of written
notice of such default by BAYLOR to correct such default. If such default is not corrected within
the said thirty (30) day period, BAYLOR shall have the right, at its option, to cancel and
terminate this Agreement. The failure of BAYLOR to exercise such right of termination, for
non-payment of fees or otherwise, shall not be deemed to be a waiver of any right BAYLOR might
have, nor shall such failure preclude BAYLOR from exercising or enforcing said right upon any
subsequent failure by GENOMETRIX.

     6.3 BAYLOR shall have the right, at its option, to cancel and terminate this Agreement in the
event that GENOMETRIX shall (i) become involved in insolvency, dissolution, bankruptcy or
receivership proceedings affecting the operation of its business or (ii) make an assignment of all
or substantially all of its assets for the benefit of creditors, or in the event that (iii) a
receiver or trustee is appointed for GENOMETRIX and GENOMETRIX shall, after the expiration of
thirty (30) days following any of the events enumerated above, have been unable to secure a
dismissal, stay or other suspension of such proceedings. In the event of termination of this
Agreement, all of BAYLOR’s rights in and to the Subject Technology shall revert to
BAYLOR.

     6.4 At the date of any termination of this Agreement pursuant to Paragraph 6.2 hereof for
breach by GENOMETRIX, or pursuant to Paragraph 6.3 hereof, as of the receipt by GENOMETRIX of
notice of such termination, all of BAYLOR’s rights in and to the Subject Technology shall revert to
BAYLOR.

     6.5 No termination of this Agreement shall constitute a termination or a waiver of any rights
of either Party against the other Party accruing at or prior to the time of such termination. The
obligations of Sections 4 and 11 shall survive termination of this Agreement.

-6-

 

SECTION 7. ASSIGNABILITY

     This Agreement shall be binding upon and shall inure to the benefit of BAYLOR and its assigns
and successors in interest, and shall be binding upon and shall inure to the benefit of GENOMETRIX
and the successor to all or substantially all of its assets or business to which this Agreement
relates, but shall not otherwise be assignable or assigned by GENOMETRIX without prior written
approval by BAYLOR being first obtained, which approval shall not be unreasonably withheld.

SECTION 8. GOVERNMENTAL COMPLIANCE

     GENOMETRIX shall at all times during the term of this Agreement and for so long as it shall
use the Subject Technology or sell Licensed Products comply and cause its sublicensees to comply
with all laws that may control the import, export, manufacture, use, sale, marketing, distribution
and other commercial exploitation of Licensed Products or any other activity undertaken pursuant to
this Agreement.

SECTION 9. GOVERNING LAW

     This Agreement shall be deemed to be subject to, and have been made under, and shall be
construed and interpreted in accordance with the laws of the State of Texas. This Agreement is
expressly acknowledged to be subject to all federal laws including, but not limited to, the Export
Administration Act of the United States of America. No conflict-of-laws rule or law that might
refer such construction and interpretation to the laws of another state, republic, or country shall
be considered.

     This Agreement is performable in part in Harris County, Texas, and the Parties mutually agree
that personal jurisdiction and venue shall be proper in the state and federal courts situated in
Harris County, Texas, and agree that any litigated dispute will be conducted solely in such courts.

SECTION 10. ADDRESSES

     10.1 All payments should be made payable to “Baylor College of Medicine” and should be sent to
the address below:

BAYLOR Tax ID #: 74-1613878

Vice President & Director of Licensing

BCM Technologies, Inc.

1709 Dryden Road, Suite 901

Houston, TX 77030

     10.2 All notices or other communication pursuant to this Agreement shall be sufficiently made
or given on the date of mailing if sent to such Party by first class mail, postage prepaid,
addressed to it at its address below or as it shall designate by written notice given to the other
Party:

-7-

 

In the case of BAYLOR:

Senior Vice President & General Counsel 

Baylor College of Medicine

One Baylor Plaza

Houston, TX 77030

In the case of GENOMETRIX:

President

Genometrix, Inc.

3608 Research Forest Drive

Suite B7

The Woodlands, TX 77381

With a copy to:

Vice President & Director of Licensing 

BCM Technologies, Inc.

1709 Dryden Road, Suite 901

Houston, TX 77030

SECTION 11. ADDITIONAL PROVISIONS

     11.1 Use of BAYLOR/MIT/HARC Name. GENOMETRIX agrees that it shall not use in any way
the names “Baylor College of Medicine,” “Massachusetts Institute of Technology” or “Houston
Advanced Research Center” or any logotypes or symbols associated with BAYLOR, MIT or HARC or the
names of any of the scientists or other researchers at BAYLOR, MIT or HARC, respectively, without
the prior written consent of BAYLOR, MIT or HARC, as the case may be.

     11.2 Representation of GENOMETRIX. GENOMETRIX represents and warrants that as a party
thereto, it has read and understands (i) the Collaboration Agreement and all exhibits thereto, (ii)
all of the rights and obligations of the parties thereto and (iii) the Letter Agreement and the
letters referenced in the “whereas” clauses at the beginning of this Agreement.

     11.3 Indemnity. Each Party shall notify the other of any claim, lawsuit or other
proceeding related to the Subject Technology. Subject to the following sentence, GENOMETRIX
agrees that it will defend, indemnify and hold harmless BAYLOR, MIT, HARC, and each of their
respective faculty members, scientists, researchers, employees, officers trustees, directors, and
agents and each of them (the “Indemnified Parties”), from and against any and all claims, causes of
action, lawsuits or other proceedings filed or otherwise instituted against any of the Indemnified
Parties related directly or indirectly to or arising out of the design, process, manufacture or use
by any person or a party of the Subject Technology, or any other embodiment of the Subject
Technology even though claims, causes of action, lawsuits or other proceedings and the costs
(including attorney’s fees) related thereto result in whole or in part from the negligence of any
of the Indemnified Parties or are based upon doctrines of strict liability or product
liability. Notwithstanding any provisions herein to the contrary, BAYLOR shall indemnify
GENOMETRIX for any claims for injuries to persons or property damage which occur on BAYLOR premises
or premises under the exclusive control of BAYLOR. GENOMETRIX will also assume responsibility for
all costs and expenses related to such claims and lawsuits for which it is obligated to indemnify
the Indemnified Parties pursuant to this Paragraph 11.3, including, but not limited to, the payment
of all reasonable attorneys’ fees and costs of litigation or other defense.

-8-

 

     11.4 Insurance.

     (a) GENOMETRIX shall, for so long as GENOMETRIX manufactures, uses or sells any
Licensed Product(s) in the Research Field, maintain in full force and effect policies of (i)
worker’s compensation and/or employers’ liability insurance within statutory limits and (ii)
general liability insurance (with Broad Form General Liability endorsement) with limits of
not less than * ($*) per occurrence with an annual aggregate of
* ($*). Such coverage(s) shall be purchased from a carrier or
carriers deemed acceptable to BAYLOR. Upon request by BAYLOR, GENOMETRIX shall provide to
BAYLOR copies of said policies of insurance.

     (b) GENOMETRIX shall, for so long as GENOMETRIX manufactures, uses or sells any
Licensed Product(s) in the Clinical Field, maintain in full force and effect policies of (i)
worker’s compensation and/or employers’ liability insurance within statutory limits and (ii)
general liability insurance (with Broad Form General Liability endorsement) with limits of
not less than * ($*) per occurrence with an annual aggregate
of * ($*) and (iii) products liability insurance, with limits
of not less than * ($*) per occurrence with an annual
aggregate of * ($*). Such coverage(s) shall be purchased from a
carrier or carriers deemed acceptable to BAYLOR and shall name BAYLOR as an additional
insured. Upon request by BAYLOR, GENOMETRIX shall provide to BAYLOR copies of said policies
of insurance.

     11.5 BAYLOR’s Disclaimers. Neither BAYLOR, MIT, HARC nor any of their respective
faculty members, researchers, trustees, officers, employees, directors, or agents assume any
responsibility for the manufacture, product specifications, sale or use of the Subject Technology
or the Licensed Products which are manufactured by or sold by GENOMETRIX.

     11.6 Independent Contractors. The Parties hereby acknowledge and agree that each is an
independent contractor and that neither Party shall be considered to be the agent, representative,
master or servant of the other Party for any purpose whatsoever, and that neither Party has any
authority to enter into a contract, to assume any obligation or to give warranties or
representations on behalf of the other Party. Nothing in this relationship shall be construed to
create a relationship of joint venture, partnership, fiduciary or other similar relationship
between the Parties.

     11.7 DISCLAIMER OF WARRANTY. BAYLOR, MIT AND HARC MAKE NO WARRANTIES OR REPRESENTATIONS,
EXPRESS OR IMPLIED, INCLUDING, BUT NOT LIMITED TO WARRANTIES OF FITNESS OR MERCHANTABILITY,
REGARDING OR WITH RESPECT TO THE SUBJECT TECHNOLOGY OR LICENSED PRODUCTS AND BAYLOR, MIT AND HARC
MAKE NO WARRANTIES OR REPRESENTATIONS, EXPRESS OR IMPLIED, OF THE PATENTABILITY OF THE SUBJECT
TECHNOLOGY OR LICENSED PRODUCTS OR OF THE ENFORCEABILITY OF ANY PATENTS ISSUING THEREUPON, IF ANY,
OR THAT THE SUBJECT TECHNOLOGY OR LICENSED 

-9-

 

PRODUCTS ARE OR SHALL BE FREE FROM INFRINGEMENT OF ANY PATENT OR OTHER RIGHTS OF THIRD
PARTIES.

     11.8 Non-Waiver. The Parties covenant and agree that if a Party fails or neglects for
any reason to take advantage of any of the terms provided for the termination of this Agreement or
if a Party, having the right to declare this Agreement terminated, shall fail to do so, any such
failure or neglect by such Party shall not be a waiver or be deemed or be construed to be a waiver
of any cause for the termination of this Agreement subsequently arising, or as a waiver of any of
the terms, covenants or conditions of this Agreement or of the performance thereof. None of the
terms, covenants and conditions of this Agreement may be waived by a Party except by its written
consent.

     11.9 Reformation. The Parties hereby agree that neither Party intends to violate any
public policy, statutory or common law, rule, regulation, treaty or decision of any government
agency or executive body thereof of any country or community or association of countries, and that
if any word, sentence, paragraph or clause or combination thereof of this Agreement is found, by a
court or executive body with judicial powers having jurisdiction over this Agreement or any of the
Parties hereto, in a final, unappealable order to be in violation of any such provision in any
country or community or association of countries, such words, sentences, paragraphs or clauses or
combination shall be inoperative in such country or community or association of countries, and the
remainder of this Agreement shall remain binding upon the Parties hereto.

     11.10 Force Majeure. No liability hereunder shall result to a Party by reason of delay
in performance caused by force majeure, that is circumstances beyond the reasonable control of the
Party, including, without limitation, acts of God, fire, flood, war, civil unrest, labor unrest, or
shortage of or inability to obtain material or equipment.

     11.11 Entire Agreement. The terms and conditions herein constitute the entire
agreement between the Parties and shall supersede all previous agreements, either oral or written,
between the Parties hereto with respect to the subject matter hereof. No agreement of understanding
bearing on this Agreement shall be binding upon either Party hereto unless it shall be in writing
and signed by the duly authorized officer or representative of each of the Parties and shall
expressly refer to this Agreement.

     IN WITNESS WHEREOF, the Parties hereto have executed and delivered this Agreement in multiple
originals by their duly authorized officers and representatives on the respective dates shown
below, but effective as of the Agreement Date.

-10-

 

	 	 	 	 	 	 	 	 	 	 	 
	GENOMETRIX, INC.	 	 	 	BAYLOR COLLEGE OF MEDICINE	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	/s/ Pies	 	 	 	/s/ W. Dalton Tomlin	 	 
	Name: 

Title:

	 	Pies
 

CEO
	 	 
	 	Name:

Title:
	 	W. Dalton Tomlin
 

Senior Vice President & General Counsel
	 	 
	Date:

	 	07/20/1998
	 	 	 	Date:
	 	06/01/1998	 	 

-11-

 

Exhibit 10.7 to the Registration Statement

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

PATENT LICENSE AGREEMENT

     THIS PATENT LICENSE AGREEMENT dated as of the 16th day of November, 2000 (the “EFFECTIVE
DATE”), is by and between MOTOROLA, INC., a Delaware corporation having an office at 4088
Commercial Drive, Northbrook, Illinois 60062 (hereinafter, together with its SUBSIDIARIES,
“MOTOROLA”), and GENOMETRIX GENOMICS INCORPORATED, a Delaware corporation having its offices at
2700 Research Forest Drive, The Woodlands, Texas 77381 (hereinafter, together with its
SUBSIDIARIES, “GENOMETRIX”), and;

     WHEREAS, GENOMETRIX owns various patents and has applications for patents pending, in various
countries of the world, covering subject matter including that referred to herein as the PRINT IP,
(as defined below);

     WHEREAS, MOTOROLA wishes to obtain certain rights and licenses under PRINT IP and GENOMETRIX
PATENTS (as defined below), including certain rights to grant sublicenses; and

     WHEREAS, GENOMETRIX is willing to grant MOTOROLA the rights and licenses set forth below,

     NOW, THEREFORE, the parties agree as follows:

SECTION 1. DEFINITIONS

     Capitalized terms used in this Agreement shall have the definitions of this Section, and shall
include the singular as well as the plural.

     1.1. AFFILIATE means any corporation or other legal entity that controls, is controlled by, or
is under common control with the named entity. For purposes of this definition, “control” means
the ownership, directly or indirectly, of more than fifty percent (50%) of the outstanding equity
securities of the entity which are entitled to vote in the election of directors.

     1.2. EFFECTIVE DATE means the date of this Agreement as first set forth above.

     1.3. PRINT IP means methods or device(s) for making a reaction substrate for use as an assay
device through the parallel printing of biosites on the reaction substrate, using a plurality of
capillaries or capillary action in flow communication with a plurality of reagent supply chambers
and means to deliver probe containing reagent from the supply area to a biosite on the reaction
substrate.

     1.4. GENOMETRIX PATENTS means U.S. Patent No. 6,083,763 and other issued patents based on
pending patent applications, together with divisions, continuations, continuations-in-part,
reissues and foreign counterparts thereof; having an application priority date prior to the
Effective Date, to the extent the claims of such patents cover PRINT IP. The
term GENOMETRIX PATENTS includes only such patents and patent applications which are owned,
licensed to or otherwise controlled by GENOMETRIX and with respect to which GENOMETRIX has the
right to grant the licenses set forth herein; and provided, further,

 

 

GENOMETRIX PATENTS shall
include such patents or patent applications only to the extent to which and subject to the
conditions under which GENOMETRIX has the right to grant licenses or rights of the scope granted
herein.

     1.5. LICENSED PRODUCTS means (i) products and services based on arrays of any size greater
than three hundred ninety nine (399) elements (excluding elements required for redundancy or
calibration) and used for any application and (ii) products and services based on arrays of any
size that use electronic detection and used for any application, and (iii) products and services
based on arrays of any size and used for any diagnostic application, the manufacture, use or sale
of which (i) by MOTOROLA or its AFF’ILIATE(s) would, but for the license granted in Article 2
hereof, infringe a VALID PATENT CLAIM or (ii) by GENOMETRIX or its AFFILIATE(s) would, but for the
license granted in Article 3 hereof, infringe a VALID PATENT CLAIM. For purposes of this Section
1.7, an “array” may be comprised of a substrate onto which biological probes are attached, or
comparable implementations utilizing microfluidics.

     1.6. NET SALES means billings by MOTOROLA, its AFFILIATES or its sublicensees for LICENSED
PRODUCTS sold, leased or transferred hereunder, less the sum of the following: (a) discounts
allowed in amounts customary in the trade; (b) sales, tariff duties and/or use taxes directly
imposed and with reference to particular sales; (c) packing and crating charges separately stated;
(d) outbound transportation prepaid or allowed; and (e) amounts allowed or credited on returns. No
deductions shall be made for commissions paid to individuals whether they are with independent
sales agencies or regularly employed by MOTOROLA and on its payroll, or for cost of collections.
LICENSED PRODUCTS shall be considered “sold” when billed out or invoiced.

For LICENSED PRODUCTS disposed of other than by sale, the NET SALES of such LICENSED PRODUCTS shall
be determined based on the fair market value of such LICENSED PRODUCTS. In the event that a
LICENSED PRODUCT is sold, leased, disposed of or otherwise transferred between MOTOROLA and an
entity affiliated with MOTOROLA in a transaction which results in revenue to MOTOROLA, the NET
SALES of LICENSED PRODUCTS with respect to such transfer shall be calculated based on the price at
which similar quantities of such LICENSED PRODUCT would have been sold to an independent THIRD
PARTY in an arms-length transaction as of the date of such transfer.

In the event that a LICENSED PRODUCT is sold in combination with one or more other integral
components not by itself a LICENSED PRODUCT, and such other integral components are not sold
separately, the parties shall arrive at a reasonable method of calculating NET SALES with respect
to such LICENSED PRODUCT, based on the relative fair market value of such LICENSED PRODUCT as
compared with the fair market value of such other integral components, and pursuant to the
procedures set forth in this paragraph. In addition, royalties paid to THIRD PARTIES shall be a
consideration in determining fair market value. If MOTOROLA and GENOMETRIX cannot agree on the NET
SALES of a particular LICENSED PRODUCT that is sold in combination with one or more other integral
components not by itself
a LICENSED PRODUCT, such NET SALES shall be determined as follows: a mutually agreeable THIRD PARTY
with experience in the relevant technology shall be selected by the American Arbitration
Association to determine the method of calculating the NET SALES (the

2

 

“Representative”). Each
party shall present the Representative with a detailed written position and have an opportunity for
an oral presentation. The decision of the Representative shall be final, binding and not
appealable, and such proceeding shall be completed within sixty (60) days of the selection of the
Representative. Each of GENOMETRIX and MOTOROLA shall bear its own costs in connection with such
NET SALES determination, and each shall pay one-half of the fees of the Representative.

     1.7. SUBLICENSE INCOME means the cash amounts received by MOTOROLA from a THIRD PARTY
sublicensee in consideration for the grant of rights under the GENOMETRIX PATENTS, in the form of
royalties on the NET SALES of LICENSED PRODUCTS by such sublicensee, or in the form of up-front
license or other fees, milestone payments, clinical development payments and any other non-royalty
cash payments which are specifically given to MOTOROLA in return for the sublicense.

Subject to 5.3 herein, if MOTOROLA receives consideration other than cash for any such sublicense,
SUBLICENSE INCOME shall be calculated as follows: (i) the fair market value of the consideration
received from the sublicensee, based upon the cash sublicense fee, royalties and other cash
consideration which would have been paid by such sublicensee in the absence of any non-cash
consideration, will be calculated, and (ii) MOTOROLA shall pay GENOMETRIX a percentage of such fair
market value (i.e. SUBLICENSE INCOME) as provided in Section 6 hereof. For purposes of the fair
market value calculation provided for in subsection (i) above, the fair market value shall not (a)
exceed a reasonable percentage of net sales for such products (combined with license fees), as
evidenced by the levels which are negotiated with THIRD PARTIES, (b) include value derived beyond
those payments which would have arisen from the sublicensee’ s affected business and revenue
stream.

The parties agree to use their best reasonable efforts to agree upon the determination of fair
market value, and each of GENOMETRIX and MOTOROLA agrees to work with the other diligently and in
good faith to evaluate and respond to proposals and/or counterproposals of the other party with
respect to the fair market value of a contemplated sublicense under the GENOMETRIX PATENTS granted
or to be granted by MOTOROLA. If the parties are unable to agree on a fair market value
determination as provided in the first paragraph (above) of this Section 1.7, then such fair market
value shall be determined as follows: a mutually agreeable THIRD PARTY with experience in the
relevant technology shall be selected by the American Arbitration Association to determine the
method of calculating such fair market value (the “Representative”). Each party shall present the
Representative with a detailed written position and have an opportunity for an oral presentation.
The decision of the Representative shall be final, binding and not appealable, and such proceeding
shall be completed within sixty (60) days of the selection of the Representative. At any point in
this process, including once the arbitration decision has been made, MOTOROLA shall have the sole
right to determine whether or not to grant the sublicense. Each of GENOMETRIX and MOTOROLA shall
bear its own costs in connection with such fair market value determination, and each shall pay
one-half of the fees of the Representative.

     1.8. THIRD PARTY means any individual or entity other than MOTOROLA and its AFFILIATES and
other than GENOMETRIX and its AFFILIATES.

3

 

     1.9. VALID PATENT CLAIM means a claim of an issued GENOMETRIX PATENT that has not expired or
been declared invalid by a court or administrative proceeding from which there is no appeal.

SECTION 2. GRANTS TO MOTOROLA UNDER THE GENOMETRIX PRINT IP

     2.1. GENOMETRIX hereby grants to MOTOROLA an exclusive, royalty-bearing, world-wide license
under the GENOMETRIX PATENTS, to make, have made, use, offer to sell, sell and import LICENSED
PRODUCTS. GENOMETRIX shall retain all other rights to GENOMETRIX PATENTS and to PRINT IP.
Provided MOTOROLA makes the payments set forth in Section 5 hereof, this license shall include the
grant to MOTOROLA of exclusive sublicensing rights in the field of LICENSED PRODUCTS, and
GENOMETRIX agrees not to grant any THIRD PARTY rights under the GENOMETRIX PATENTS to make, have
made, use, offer to sell, sell or import LICENSED PRODUCTS.

     2.2. Any sublicense granted by MOTOROLA to a third party shall be consistent with the grants
made to MOTOROLA, and the other terms of this Agreement.

     2.3. Notwithstanding any other provision of this Agreement, nothing herein shall be construed
as granting or requiring either party to grant any license or rights under its intellectual
property to any party outside this Agreement.

SECTION 3. GRANT BACK TO GENOMETRTIX

     3.1. MOTOROLA hereby grants to GENOMETRIX a non-exclusive, world-wide license under GENOMETRIX
PATENTS to make, have made, use, offer to sell, sell and import LICENSED PRODUCTS, provided
GENOMETRIX makes the annual payments to MOTOROLA set forth in 5.10 herein.

SECTION 4. RIGHTS TO FILE. AND ENFORCE THE GENOMETRIX PATENTS

     4.1. GENOMETRIX shall have the sole right to prepare, file, prosecute and maintain GENOMETRIX
PATENTS covering PRINT IP. If, during the prosecution of any patent application covering any
GENOMETRIX PATENT in PRINT IP under which MOTOROLA has obtained a license hereunder, GENOMETRIX
decides or is advised of a decision to discontinue prosecution of the application or maintenance of
such patent, GENOMETRIX shall promptly advise MOTOROLA of the decision and, if so requested by
MOTOROLA, shall, at its sole discretion, continue such prosecution or maintenance; provided, that,
MOTOROLA shall bear all the costs associated with such continued prosecution or maintenance.

     4.2. If GENOMETRIX or MOTOROLA learn of the infringement or threatened infringement of any
GENOMETRIX PATENT such party will inform the other party (GENOMETRIX or MOTOROLA, as the case may
be) in writing within thirty (30) days and provide all known evidence of the infringement. In the
event MOTOROLA’s actions or attempts to license or enforce or defend the GENOMETRIX PATENTS results
in any legal action, and
MOTOROLA is required to incur outside legal fees and actual expenditures for any legal action
related to any GENOMETRIX PATENT, then MOTOROLA shall be entitled to
offset * (*%) of
such expenditures from any monetary damages received in such action, or, in

4

 

the event such damages
are insufficient to cover such costs, offset any such unrecovered amount against any royalties due
GENOMETRIX. If MOTOROLA takes a lead role in any litigation involving any GENOMETRIX PATENT,
MOTOROLA shall cause its counsel to also represent GENOMETRIX (at MOTOROLA’s expense), so long as
GENOMETRIX does not have an active role in the litigation, nor an adverse position to MOTOROLA in
the litigation, and so long as GENOMETRIX agrees that MOTOROLA may control the litigation strategy.

SECTION 5. PAYMENTS AND REPORTS

     5.1. In consideration for the rights and license granted to MOTOROLA pursuant to this
Agreement, MOTOROLA shall pay GENOMETRIX an initial license fee of *
($*). Such amount shall be paid by MOTOROLA to GENOMETRIX
within 24 hours of execution of this Agreement.

     5.2. In further consideration for the rights and licenses granted hereunder, MOTOROLA shall
pay GENOMETRIX a single royalty of * (*%) of NET SALES of LICENSED PRODUCTS sold by
MOTOROLA or its AFFILIATES.

     5.3. In consideration of the rights and licenses granted hereunder, MOTOROLA shall pay
GENOMETRIX * (*%) of any SUBLICENSE INCOME received by MOTOROLA in consideration for
the grant of a sublicense under the GENOMETRIX PATENTS.

     In
the event any sublicense requires, and MOTOROLA pays to GENOMETRIX,
at least *% running
royalty on NET SALES of LICENSED PRODUCTS, then only cash payments and royalties are considered
SUBLICENSE INCOME for such sublicense. If running royalties of at
least *% of NET SALES of
LICENSED PRODUCTS do not exist in such sublicense agreement, or are not paid by Motorola, then all
cash, non-cash payments and other value received shall be considered SUBLICENSE INCOME.

     5.4. Within thirty (30) days of the close of each calendar quarter following the EFFECTIVE
DATE, MOTOROLA shall (i) deliver to GENOMETRIX a report setting forth all LICENSED PRODUCTS sold,
leased or otherwise transferred or disposed of by MOTOROLA or its AFFILIATES during such calendar
quarter, which report shall indicate the NET SALES thereof and the amount of royalties due,
including a list of all deductions therefrom, or such report shall certify that no LICENSED
PRODUCTS were sold or otherwise disposed of, and (ii) to the extent royalties are owed, MOTOROLA
shall make such royalty payments to GENOMETRIX in accordance with this Section 5.

     5.5. Within thirty (30) days of the grant of a sublicense under the GENOMETRIX PATENTS,
MOTOROLA shall deliver to GENOMETRIX a report setting forth the type and amounts of consideration
received in connection with the grant of such sublicense, together with the amount of SUBLICENSE
INCOME due GENOMETRIX hereunder and the calculation of such amounts, and (ii) payment of all such
SUBLICENSE INCOME owed by MOTOROLA to
GENOMETRIX as of such date. The foregoing notwithstanding, to the extent all or a portion of
such SUBLICENSE INCOME is based on non-cash consideration received by MOTOROLA,

5

 

GENOMETRIX and
MOTOROLA shall mutually agree in good faith to reasonable payment terms consistent with Section
1.7.

     5.6. Within forty-five (45) days of the close of each calendar quarter following the EFFECTIVE
DATE, MOTOROLA shall: (i) deliver to GENOMETRIX a report setting forth all LICENSED PRODUCTS sold,
leased or otherwise transferred or disposed of by MOTOROLA’s sublicensees during such calendar
quarter, which report shall indicate the NET SALES of LICENSED PRODUCTS sold by such sublicensees,
and the amount of SUBLICENSE INCOME due in connection with such sales, including a list of all
deductions therefrom, or such report shall certify that no LICENSED PRODUCTS were sold or otherwise
disposed of by sublicensees of MOTOROLA; and (ii) deliver to GENOMETRIX a report setting forth all
other SUBLICENSE INCOME received by MOTOROLA during such calendar quarter, which report shall
indicate the amount of SUBLICENSE INCOME received by MOTOROLA and the amount of such SUBLICENSE
INCOME owed to GENOMETRIX and the calculations therefore; and (iii) to the extent SUBLICENSE INCOME
is owed to GENOMETRIX, including SUBLICENSE INCOME based on the sale of LICENSED PRODUCTS by a
sublicensee of MOTOROLA, MOTOROLA shall make such SUBLICENSE INCOME payments to GENOMETRIX in
accordance with this Section 5.

     5.7. Payments of royalties or SUBLICENSE INCOME by MOTOROLA shall be made in United States
currency and by wire transfer to such account as GENOMETRIX may specify in writing from time to
time or by check mailed to GENOMETRIX at the address set forth below. In the event of a wire
transfer, notice of payment shall be sent by MOTOROLA to GENOMETRIX’s address as listed below.
Conversion of foreign currency to United States currency shall be made at the exchange rate
prevailing at the Chase Manhattan Bank (N.A.) on the last business day of the reporting period to
which such royalty or SUBLICENSE INCOME payments relate, unless otherwise agreed in writing by
GENOMETRIX and MOTOROLA.

     5.8. Any payment hereunder which shall be delayed beyond the due date shall be subject to an
interest charge at a per annum rate equal to the greater of: (i) the prime rate in effect at the
Chase Manhattan Bank (N.A.) on the due date, or (ii) the rate which GENOMETRIX is required to pay
to a THIRD PARTY licensor, but in any event no greater than the highest rate allowed by law on the
due date. The payment of such interest shall not foreclose GENOMETRIX from exercising any other
rights it may have as a consequence of the lateness of any payment.

     5.9. With respect to the payments set forth in this Section 5, MOTOROLA shall keep clear and
accurate records with respect to all LICENSED PRODUCTS sold or otherwise disposed of by MOTOROLA,
its AFFILIATES or sublicensees. These records shall be retained by MOTOROLA for a period of five
(5) years from the date of reporting and payment, notwithstanding the expiration or other
termination of this Agreement. GENOMETRIX shall have the right, through an independent certified
public accountant chosen by GENOMETRIX and reasonably acceptable to MOTOROLA, and at the expense of
GENOMETRIX, to examine and audit, not more than once a year, and during normal business hours, all
such records and such other records and accounts as may, under recognized accounting practices,
contain
information bearing upon the amount of royalties, nature and amount of consideration or value
received from sublicenses, and SUBLICENSE INCOME payable to GENOMETRIX under this

6

 

Agreement.
Prompt adjustment shall be made by MOTOROLA to compensate for any errors and/or omissions disclosed
by such examination or audit. Should the amount of royalties or SUBLICENSE INCOME due as
determined through the audit exceed the amount of royalties and/or SUBLICENSE INCOME reported to be
due by MOTOROLA by * (*%) or * ($*),
whichever is greater, then MOTOROLA shall pay the full cost of the audit.

     5.10. ANNUAL PAYMENT BY GENOMETRIX. In consideration of the rights and license granted to
MOTOROLA in Section 2, GENOMETRIX shall be only required to pay
an annual amount equal to * ($*), due on each anniversary of EFFECTIVE DATE, to maintain the
non-exclusive license granted back to GENOMETRIX in Paragraph 3.1 herein. Such payment shall be
due on November 1, of each calendar year beginning November 1, 2001, and continuing
for * years, with a final payment due on November 1, 2015, after which the non-exclusive license
granted to GENOMETRIX shall be fully paid. MOTOROLA shall notify GENOMETRIX in writing at least 20
days prior to each annual due date and any late or missed payment by GENOMETRIX shall not
constitute a default or non-payment until GENOMETRIX has been so notified of non-payment, and after
ninety (90) days have therefore elapsed.

SECTION 6. TERM, TERMINATION AND ASSIGNABILITY

     6.1. The term of this Agreement shall be from the EFFECTIVE DATE until expiration of the last
patent or disallowance of the last GENOMETRIX PATENT unless earlier terminated as provided
elsewhere in this Agreement.

     6.2. In the event of any material breach of this Agreement by either party hereto, if such
breach is not corrected within thirty (30) days after written notice to the breaching party in the
case of a breach in the payment of royalties or SUBLICENSE INCOME under Section 6, or within
forty-five (45) days after written notice to the breaching party for all other breaches, the
non-breaching party may, at its option terminate this Agreement.

     6.3. The rights or privileges provided for in this Agreement may be assigned or transferred by
either party only with the prior written consent of the other party, except that either party may
assign its rights under this Agreement, to a successor in ownership of all or substantially all of
its assets relating to the subject matter of this Agreement.

     6.4. Sections in this Agreement with respect to payment and reporting obligations covering the
sale, lease, transfer or sublicensing of intellectual property, products or services prior to the
effective date of such expiration or termination, this Section 6.4, and Sections 7, 8 and 9 shall
survive the expiration or termination of this Agreement. The termination, relinquishment or
expiration of this Agreement for any reason shall be without prejudice to any rights which shall
have accrued to the benefit of either party under this Agreement prior to such termination,
relinquishment or expiration. Such termination, relinquishment or expiration shall not relieve
either party from obligations which are expressly indicated to survive termination or expiration of
this Agreement.

7

 

SECTION 7. PRODUCT LIABILITY, INSURANCE AND INDEMNIFICATION

     7.1. MOTOROLA shall at all times during the term of this Agreement and thereafter, indemnify,
defend and hold GENOMETRIX, their trustees, directors, officers, employees and affiliates harmless
against all claims, proceedings, demands and liabilities of any kind whatsoever, including legal
expenses and reasonable attorneys’ fees, arising out of the death of or injury to any person or
persons or out of any damage to property, resulting from the production, manufacture, sale, use,
lease, consumption or advertisement of LICENSED PRODUCT(s) by MOTOROLA.

     7.2. GENOMETRIX shall at all times during the term of this Agreement and thereafter,
indemnify, defend and hold MOTOROLA, their trustees, directors, officers, employees and affiliates
harmless against all claims, proceedings, demands and liabilities of any kind whatsoever, including
legal expenses and reasonable attorneys’ fees, arising out of the death of or injury to any person
or persons or out of any damage to property, resulting from the production, manufacture, sale, use,
lease, consumption or advertisement of LICENSED PRODUCT(s) by GENOMETRIX.

SECTION 8. WARRANTIES

     8.1. GENOMETRIX warrants that, to the best of its knowledge it owns or has license rights to
the GENOMETRIX PATENTS, free and clear of all liens, encumbrances, and claims or demands of THIRD
PARTIES.

     8.2. Each party warrants that it has the authority to enter into this Agreement.

     8.3. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, GENOMETRIX, ITS TRUSTEES,
DIRECTORS, OFFICERS, EMPLOYEES AND SUBSIDIARIES MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTIES OF
ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, VALIDITY OF THE GENOMETRIX PATENTS, CLAIMS, ISSUED OR PENDING, AND THE
ABSENCE OF LATENT OR OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE. NOTHING IN THIS AGREEMENT SHALL
BE CONSTRUED AS A REPRESENTATION MADE OR WARRANTY GIVEN BY GENOMETRIX THAT THE PRACTICE BY MOTOROLA
OF THE LICENSES GRANTED HEREUNDER SHALL NOT INFRINGE THE PATENT RIGHTS OF ANY THIRD PARTY. EXCEPT
AS EXPRESSLY STATED HEREIN, IN NO EVENT SHALL GENOMETRIX, ITS TRUSTEES, DIRECTORS, OFFICERS,
EMPLOYEES OR SUBSIDIARIES BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING
ECONOMIC DAMAGE OR INJURY TO PROPERTY AND LOST PROFITS.

     8.4. DISPUTE RESOLUTION. Except for the right of either party to apply to a court of
competent jurisdiction for a temporary restraining order, a preliminary injunction, or other
equitable relief to preserve the status quo or prevent irreparable harm, any and all claims,
disputes or controversies arising under, out of, or in connection with this Agreement, including
any dispute relating to patent validity or infringement, which the parties shall be unable to

8

 

resolve within sixty (60) days shall be mediated in good faith. The party raising such
dispute shall promptly advise the other party of such claim, dispute or controversy in a writing
which describes in reasonable detail the nature of such dispute. If the parties are unable to
resolve such dispute within such sixty (60) day period, either party may demand mediation by
written notice to the other party. By not later than ten (10) business days after the recipient
has received such demand for mediation, each party shall have selected for itself a representative
who shall have the authority to bind such party, and shall additionally have advised the other
party in writing of the name and title of such representative. By not later than twenty (20)
business days after the date of such demand for mediation, the party against whom the dispute shall
be raised shall select a mediation firm in the Houston area which is acceptable to the other party
(which acceptance shall not be unreasonably withheld) and such representatives shall schedule a
date with such firm for a mediation hearing. Within thirty (30) days after the selection of the
mediation firm, the parties shall enter into good faith mediation and shall share the costs
equally. If the representatives of the parties have not been able to resolve the dispute within
fifteen (15) business days after such mediation hearing, the parties shall have the right to pursue
any other remedies legally available to resolve such dispute in any court having jurisdiction.

SECTION 9. MISCELLANEOUS PROVISIONS

     9.1. MOTOROLA shall at all times during the term of this Agreement and for so long as it shall
practice the GENOMETRIX PATENTS or the PRINT IP, or develop, make, use or sell LICENSED PRODUCTS,
comply with all laws that may control the import, export, manufacture, use, sale, marketing,
distribution and other commercial exploitation of LICENSED PRODUCTS or any other activity
undertaken pursuant to this Agreement.

     9.2. Nothing contained in this Agreement shall be construed as:

	 	(a)	 	conferring any license or other right, by implication, estoppel
or otherwise, under any patent application, patent or patent right, except as
herein expressly granted; or
	 
	 	(b)	 	conferring any license or right with respect to any trademark,
trade or brand name, a corporate name of any party, or any other name or mark,
or contraction, abbreviation or simulation thereof.
	 
	 	(c)	 	conferring any license or right with respect to any
confidential, trade secret or technical information of either party.

     9.3. No express or implied waiver by either of the parties to this Agreement of any breach of
any term, condition or obligation of this Agreement by the other party shall be construed as a
waiver of any subsequent breach of that term, condition or obligation or of any other term,
condition or obligation of this Agreement of the same or of a different nature.

     9.4. This Agreement is the result of negotiation between the parties and, accordingly, shall
not be construed for or against either party regardless of which party drafted this Agreement or
any portion thereof.

9

 

     9.5. Neither party shall issue any press release or make any public announcement relating to
this Agreement without the prior written approval of the other party.

     9.6. Nothing in this Agreement shall be construed as creating a partnership, joint venture, or
other formal business organization of any kind.

     9.7. Except as expressly stated herein, in no event shall either party be liable to the other
party by reason of this Agreement or any breach or termination of this Agreement for any loss of
prospective profits or incidental or special or consequential damages.

     9.8. The headings and captions used in this Agreement are for convenience only, and are not to
be used in interpreting the obligations of the parties under this Agreement.

     9.9. This License Agreement shall be subject to, made under, and shall be construed and
interpreted in accordance with the laws of the State of Delaware.

     9.10. If any term, clause, or provision of this Agreement shall be judged to be invalid, the
validity of any other term, clause, or provision shall not be affected, and such invalid term,
clause, or provision shall be deemed deleted from this Agreement.

     9.11. This Agreement sets forth the entire agreement and understanding between MOTOROLA and
GENOMETRIX as to the subject matter hereof, and supersedes and merges any and all prior
discussions, correspondence, agreements or understandings between the parties with respect to such
matters.

10

 

IN WITNESS WHEREOF, each party hereto has caused this Patent License Agreement to be executed by
its duly authorized representatives:

	 	 	 	 	 	 	 	 	 	 	 
	MOTOROLA, INCORPORATED	 	 	 	GENOMETRIX GENOMICS INCORPORATED
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Nicholas Naclerio
 

Nicholas Naclerio 

Vice President and General Manager
	 	  
	 	By:
	 	/s/ David Jorden
 

David Jorden

Vice president & Chief Financial Officer
	 	  
	 
	 	 	 	 	 	 	 	 	 	 

	 	 	 	 	 
	 	 	 
	By:  	/s/  Jonathan Meyer
 	 	 
	 	Jonathan Meyer 	 	 
	 	Title:  	Corporate Vice President,

Assistant General Counsel,

and Director of Patents, Trademarks and Licensing 	 	 
	 

 

 

Exhibit 10.7 to the Registration Statement

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

AMENDED AND RESTATED

LICENSE AND RESEARCH AGREEMENT

     THIS AMENDED AND RESTATED LICENSE AND RESEARCH AGREEMENT (the “Agreement”), dated October 31,
2000, amends and restates that LICENSE AND RESEARCH AGREEMENT dated as of the 2 day of July, 1999
(the “EFFECTIVE DATE”), by and between MOTOROLA, INC., a Delaware corporation having an office at
4088 Commercial Drive, Northbrook, Illinois 60062 (hereinafter, together with its SUBSIDIARIES,
“MOTOROLA”), and GENOMETRIX INCORPORATED, a Delaware corporation having its offices at 3608
Research Forest Drive, Suite B7, The Woodlands, Texas 77381 (hereinafter, together with its
SUBSIDIARIES, “GENOMETRIX”), as previously amended by that FIRST AMENDMENT TO LICENSE AND RESEARCH
AGREEMENT dated March 15, 2000, between MOTOROLA and GENOMETRIX.

     WHEREAS, GENOMETRIX owns, controls or has acquired rights under various patents and
applications for patents pending, in various countries of the world, referred to herein as the
E-FIELD MANIPULATION IP, SURFACE CHEMISTRIES IP and OPTICAL DETECTION IP (each as defined below);

     WHEREAS, GENOMETRIX and MOTOROLA previously entered into the LICENSE AND OPTION AGREEMENT (as
hereinafter defined), whereby GENOMETRIX granted MOTOROLA rights, including certain option rights,
under the E-FIELD MANIPULATION IP and the SURFACE CHEMISTRIES IP;

     WHEREAS, MOTOROLA wishes to obtain certain additional rights and certain co-exclusive, (with
GENOMETRIX) licenses under the E-FIELD MANIPULATION IP and the SURFACE CHEMISTRIES IP, including
certain rights to grant sublicenses, and in addition thereto, MOTOROLA wishes to obtain rights
under the OPTICAL DETECTION IP and MOTOROLA desires that GENOMETRIX conduct certain research
relating to the SURFACE CHEMISTRIES IP; and

     WHEREAS, GENOMETRIX is willing to grant MOTOROLA the licenses set forth herein, and GENOMETRIX
is willing to conduct the SURFACE CHEMISTRIES RESEARCH PROGRAM (as hereinafter defined).

     NOW, THEREFORE, the parties agree as follows:

SECTION 1. DEFINITIONS

     Capitalized terms used herein shall have the definitions assigned to them in this Section 1,
and shall include the singular as well as the plural.

     1.1 AFFILIATE means any corporation or other legal entity that controls, is controlled by, or
is under common control with the named entity. For purposes of this definition, “control” means
the ownership, directly or indirectly, of more than fifty percent (50%) of the outstanding equity
securities of the entity which are entitled to vote in the election of directors.

1

 

     1.2 BAYLOR means the Baylor College of Medicine, a Texas nonprofit corporation having its
principal place of business at One Baylor Plaza, Houston, Texas 77030.

     1.3 BAYLOR AGREEMENT means that certain agreement entered into by and between GENOMETRIX and
BAYLOR and having an effective date of May 31, 1998, and as amended from time-to-time. A true and
accurate copy of the BAYLOR AGREEMENT is attached hereto as Exhibit C.

     1.4 COLLABORATION AGREEMENT means that certain Collaboration Agreement among MIT, GENOMETRIX
and certain others, dated May 28, 1993 and amended November 5, 1993, and as subsequently amended
from time-to-time.

     1.5 COMPLEMENTARY PRODUCTS means (a) products and services based on arrays of size less than
twenty (20) distinct probes (excluding probes required for redundancy or calibration) or greater
than nine hundred and ninety nine (999) distinct probes; (b) portable products and services based
on arrays of any size for use at a single general point of sample collection and analysis; (c)
portable or non-portable products and services based on arrays of any size for use in clinical
diagnostics at any location, so long as such diagnostic tests do not compete with pharmacogenomic
genotyping products or services, produced, provided or commercialized by GENOMETRIX (the
“GENOMETRIX EXCLUSION”), where allowed products and services shall include but are not limited to
tests for viral load, bacterial or viral identification, drug or toxin presence, allergies,
immunoassays and disease state monitoring; (d) for E-FIELD MANIPULATION IP, products and services
based on arrays of any size and used for any application field; or (e) such additional products and
services based on arrays of any size as MOTOROLA and GENOMETRIX may mutually agree in writing from
time to time. For purposes of this Section 1.5, an “array” may be comprised of a substrate onto
which biological probes are attached, or comparable implementations utilizing microfluidics.

     1.6 EFFECTIVE DATE means the date of this Agreement as set forth above.

     1.7 E-FIELD MANIPULATION IP means GENOMETRIX INTELLECTUAL PROPERTY used for the research,
development, manufacture or use of COMPLEMENTARY PRODUCTS and pertaining to the use of an electric
field property, including electrical properties and electrochemical properties, including without
limitation, (a) identify or detect molecular structures within a sample substance applied to one or
more test sites, (b) accelerate or enhance the rate at which interaction mechanisms, such as
hybridization, occur between molecules at one or more test sites, (c) increase the specificity
and/or selectivity of the interaction between two or more molecular structures, (d) the use of an
electric field property to synthesize and/or deposit molecular structures onto an array to form
test sites, and (e) optical, radioisotope, chemiluminescent, electrochemical and thermal detection
methods and technology. By way of example but not limitation, Exhibit D hereof sets forth
representative claims of certain existing GENOMETRIX PATENTS which meet the criteria for E-FIELD
MANIPULATION IP.

     1.8 E-FIELD PRODUCTS means COMPLEMENTARY PRODUCTS (or a portion thereof) which (a) are covered
in whole or in part by, or the use thereof is covered in whole or in

2

 

party by, the E-FIELD MANIPULATION IP; or (b) are manufactured through use of a process which
is covered in whole or in part by the E-FIELD MANIPULATION IP.

     1.9 GENOMETRIX INTELLECTUAL PROPERTY means GENOMETRIX PATENTS and unpatented information
relating to the research, development, manufacture or use of COMPLEMENTARY PRODUCTS heretofore
disclosed to MOTOROLA pursuant to Section 2.1 of the LICENSE AND OPTION AGREEMENT.

     1.10 GENOMETRIX PATENTS means (i) the patents and patent applications set forth on Exhibit
A hereof, together with divisions, continuations, continuations-in-part, reissues and foreign
counterparts thereof; (ii) patents and patent applications other than PROGRAM PATENTS claiming
inventions or discoveries conceived and reduced to practice by GENOMETRIX prior to December 28,
2001, and, with respect to all of the patents and patent applications identified in (i) and (ii),
which meet the criteria for E-FIELD MANIPULATION IP or SURFACE CHEMISTRIES IP. The foregoing
notwithstanding, the term GENOMETRIX PATENTS includes only such patents and patent applications
which are owned, licensed to or otherwise controlled by GENOMETRIX and with respect to which
GENOMETRIX has the right to grant the licenses set forth herein; and provided, further, GENOMETRIX
PATENTS shall include such patents or patent applications only to the extent to which and subject
to the conditions under which GENOMETRIX has the right to grant licenses or rights of the scope
granted herein.

     1.11 GENOMETRIX PRINCIPAL INVESTIGATOR has the meaning set forth in Section 2.2.

     1.12 HARC means the Houston Advanced Research Center, having its principal offices at 4800
Research Forest Drive, The Woodlands, Texas, 77381.

     1.13 LICENSE AND OPTION AGREEMENT means the License and Option Agreement entered into between
MOTOROLA and GENOMETRIX dated December 8, 1998. A true and accurate copy of the LICENSE AND OPTION
AGREEMENT is attached hereto as Exhibit G.

     1.14 LICENSED PRODUCTS means, collectively, the E-FIELD PRODUCTS, the SURFACE CHEMISTRIES
PRODUCTS and the OPTICAL DETECTION PRODUCTS.

     1.15 MIT means the Massachusetts Institute of Technology, a corporation duly organized and
existing under the laws of the Commonwealth of Massachusetts and having its principal offices at 74
Massachusetts Avenue, Cambridge, Massachusetts, 02139.

     1.16 MIT AGREEMENT means that certain agreement entered into by and between GENOMETRIX and MIT
and having an effective date of May 27, 1994, as amended April 1, 1996 (the 5722L technology only),
and as subsequently amended from time-to-time. A true and accurate copy of the MIT AGREEMENT is
attached hereto as Exhibit B.

     1.17 MOTOROLA REPRESENTATIVE has the meaning set forth in Section 2.2.

3

 

     1.18 MOTOROLA TECHNOLOGY means technology relating to GEL BASED MICROARRAY which is provided
by MOTOROLA to GENOMETRIX for use in the conduct of the SURFACE CHEMISTRIES RESEARCH PROGRAM. The
term “GEL BASED MICROARRAY shall mean a device on which an array of biomolecules have been or are
intended to be immobilized (as in the case of a blank array), whereby the biomolecules are
immobilized in a porous matrix.

     1.19 NET SALES means billings by MOTOROLA, its SUBSIDIARIES or its sublicensees for LICENSED
PRODUCTS sold, leased or transferred hereunder, less the sum of the following:

     (a) discounts allowed in amounts customary in the trade;

     (b) sales, tariff duties and/or use taxes directly imposed and with reference to
particular sales;

     (c) packing and crating charges separately stated;

     (d) outbound transportation prepaid or allowed; and

     (e) amounts allowed. or credited on returns.

     No deductions shall be made for commissions paid to individuals whether they be with
independent sales agencies or regularly employed by MOTOROLA and on its payroll, or for cost of
collections. LICENSED PRODUCTS shall be considered “sold” when billed out or invoiced. For
LICENSED PRODUCTS disposed of other than by sale, the NET SALES of such LICENSED PRODUCTS shall be
determined based on the fair market value of such LICENSED PRODUCTS. In the event that a LICENSED
PRODUCT is sold, leased, disposed of or otherwise transferred between MOTOROLA and an entity
affiliated with MOTOROLA in a transaction which results in revenue to MOTOROLA, the NET SALES of
LICENSED PRODUCTS with respect to such transfer shall be calculated based on the price at which
similar quantities of such LICENSED PRODUCT would have been sold to an independent THIRD PARTY in
an arms-length transaction as of the date of such transfer.

     In the event that a LICENSED PRODUCT is sold in combination with one or more other integral
components not by itself a LICENSED PRODUCT, and such other integral components are not sold
separately, the parties shall arrive at a reasonable method of calculating NET SALES with respect
to such LICENSED PRODUCT, based on the relative fair market value of such LICENSED PRODUCT as
compared with the fair market value of such other integral components, and pursuant to the
procedures set forth in this paragraph. For the purposes of such NET SALES determination,
representative integral components may include: DNA sequences, reagents, microfluidics and liquid
handling systems, and data acquisition, manipulation and display systems. In addition, royalties
paid to THIRD PARTIES shall be a consideration in determining fair market value. If MOTOROLA and
GENOMETRIX cannot agree on the NET SALES of a particular LICENSED PRODUCT that is sold in
combination with one or more other integral components not by itself a LICENSED PRODUCT, such NET
SALES shall be

4

 

determined as follows: a mutually agreeable THIRD PARTY with experience in the relevant
technology shall be selected by the American Arbitration Association to determine the method of
calculating the NET SALES (the “Representative”). Each party shall present the Representative with
a detailed written position and have an opportunity for an oral presentation. The decision of the
Representative shall be final, binding and not appealable, and such proceeding shall be completed
within sixty (60) days of the selection of the Representative. Each of GENOMETRIX and MOTOROLA
shall bear its own costs in connection with such NET SALES determination, and each shall pay
one-half of the fees of the Representative. Notwithstanding the foregoing, the parties agree that
the determination of NET SALES of LICENSED PRODUCTS pursuant to this Section 1.19 is subject to the
MIT AGREEMENT (to the extent the MIT AGREEMENT applies); provided, however, that GENOMETRIX agrees
(where applicable) to use reasonable best efforts to obtain MIT’s approval of the methods utilized
by the parties pursuant to this Section 1.19 for determining such NET SALES.

     1.20 OPTICAL DETECTION IP means GENOMETRIX INTELLECTUAL PROPERTY pertaining to the use of
radiation to detect the presence of molecular structures, including, without limitation, claims
20-27 of United States Patent Number 5,653,939 and claims 36, 39 and 41 of United States Patent
Number 5,846,708, together with divisions, continuations, continuations-in-part, reissues and
foreign counterparts thereof. The foregoing notwithstanding, the term OPTICAL DETECTION IP
includes only such patents and patent applications which are owned, licensed to or otherwise
controlled by GENOMETRIX and with respect to which GENOMETRIX has the right to grant the licenses
set forth herein; and provided, further, OPTICAL DETECTION IP shall include such patents or patent
applications only to the extent to which and subject to the conditions under which GENOMETRIX has
the right to grant licenses or rights of the scope granted herein.

     1.21 OPTICAL DETECTION PRODUCTS means (a) COMPLEMENTARY PRODUCTS (or the optical sensor
contained in such products) which are covered in whole or in part by, or the use thereof is covered
in whole or in part by, the OPTICAL DETECTION IP; or (b) COMPLEMENTARY PRODUCTS (or the optical
sensor contained in such products) which are manufactured through use of a process which is
covered, in whole or in part, by the OPTICAL DETECTION IP.

     1.22 PROGRAM PATENTS means all patent applications and patents covering PROGRAM TECHNOLOGY,
together with divisions, continuations, continuations-in-part, reissues and foreign counterparts
thereof. MOTOROLA PROGRAM PATENTS, GENOMETRIX PROGRAM PATENTS and JOINT PROGRAM PATENTS have the
respective meanings assigned to them in Section 5.1 hereof.

     1.23 PROGRAM TECHNOLOGY means all inventions, discoveries, data, information, know-how,
improvements, developments or discoveries, whether or not patentable, conceived and reduced to
practice pursuant to the conduct of the SURFACE CHEMISTRIES RESEARCH PROGRAM: (i) solely by
employees or others acting on behalf of GENOMETRIX; (ii) solely by employees or others acting on
behalf of MOTOROLA, or (iii) jointly by employees or others acting on behalf of GENOMETRIX together
with employees or others acting on behalf of MOTOROLA. MOTOROLA PROGRAM TECHNOLOGY,

5

 

GENOMETRIX PROGRAM TECHNOLOGY and JOINT PROGRAM TECHNOLOGY have the respective meaning
assigned to them in Section 2.8 hereof.

     1.24 RESEARCH PLAN means the detailed description of the activities to be conducted by
GENOMETRIX pursuant to the SURFACE CHEMISTRIES RESEARCH PROGRAM, as described in Exhibit E.
Exhibit E may be amended from time to time during the RESEARCH TERM upon the mutual
agreement of the parties.

     1.25 RESEARCH TERM has the meaning set forth in Section 2.1 hereof.

     1.26 SUBLICENSE INCOME means the amounts received by MOTOROLA from a THIRD PARTY sublicensee
as cash consideration for the grant of rights under the GENOMETRIX PATENTS, in the form of
royalties on the NET SALES of LICENSED PRODUCTS by such sublicensee, or in the form of up-front
license fees, milestone payments, clinical development payments and any other non-royalty cash
payments which are specifically given to MOTOROLA in return for the sublicense. The foregoing
provisions notwithstanding, MOTOROLA and GENOMETRIX recognize and agree that the prior written
consent of MIT may be required (as provided in Section 2 of the MIT AGREEMENT) in
connection with any sublicense of the E-FIELD MANIPULATION IP in cases where MOTOROLA is to receive
anything of value other than cash in consideration for the grant of such sublicense, and both
parties agree to work together and use reasonable best efforts to obtain MIT’s approval of such
licensing arrangements.

     1.27 SUBSIDIARY means a corporation, company, or other entity more than forty-eight percent
(48%) of whose outstanding shares or securities (representing the right to vote for the election of
directors or other managing authority) are, now or hereafter, owned or controlled, directly or
indirectly by a party hereto, but such corporation, company, or other entity shall be deemed to be
a SUBSIDIARY only so long as such ownership or control exists. Unless otherwise specified, the
term MOTOROLA includes its SUBSIDIARIES and the term GENOMETRIX includes its SUBSIDIARIES.

     1.28 SURFACE CHEMISTRIES IP means GENOMETRIX INTELLECTUAL PROPERTY used for the research,
development, manufacture or use of COMPLEMENTARY PRODUCTS and pertaining to the use of specific
molecular structures to alter the ionic and/or hydrophobic properties of an array site to: (a)
accelerate the rate at which molecular interactions occur at the site, (b) increase the specificity
and/or selectivity of the interaction between molecular structures at the site, (c) enable
molecular interactions to occur with adequate or enhanced specificity at non-elevated temperatures,
including ambient or room temperature, and (d) enable molecular interactions to occur at minimized
salt concentrations, but excluding combinatorial chemistry approaches and associated hybridization
devices to develop and/or evaluate alternative chemistries. By way of example and without
limitation, Exhibit D hereof sets forth representative claims of certain existing
GENOMETRIX PATENTS which meet the criteria for SURFACE CHEMISTRIES IP.

     1.29 SURFACE CHEMISTRIES PRODUCTS means COMPLEMENTARY PRODUCTS which (a) are covered in whole
or in part by, or the use thereof is covered in whole

6

 

or in part by, the SURFACE CHEMISTRIES IP or (b) are manufactured through use of a process
which is covered, in whole or in part, the SURFACE CHEMISTRIES IP.

     1.30 SURFACE CHEMISTRIES RESEARCH PROGRAM means the program of research to be conducted by
GENOMETRIX and funded by MOTOROLA pursuant to this Agreement, as described in detail in Section 2
of this Agreement and in the RESEARCH PLAN.

     1.31 THIRD PARTY means any individual or entity other than MOTOROLA and its SUBSIDIARIES and
other than GENOMETRIX and its SUBSIDIARIES.

     1.32 VALID PATENT CLAIM means (i) a claim of an issued patent that has not expired or been
declared invalid by a court or administrative proceeding from which there is no appeal; and (ii) a
pending claim asserted in good faith and with respect to which GENOMETRIX has an obligation to pay
a royalty to MIT pursuant to the MIT AGREEMENT.

     1.33 UNIVERSAL ARRAY IP has the meaning set forth in Section 1.3 of the LICENSE and OPTION
AGREEMENT.

     1.34 UNIVERSAL ARRAY PRODUCTS has the meaning set forth in Section 1.9 of the LICENSE and
OPTION AGREEMENT.

SECTION 2. THE SURFACE CHEMISTRIES RESEARCH PROGRAM; RIGHTS TO PROGRAM TECHNOLOGY AND
PROGRAM PATENTS.

     2.1 MOTOROLA and GENOMETRIX have agreed that GENOMETRIX will conduct the SURFACE CHEMISTRIES
RESEARCH PROGRAM for the purpose of adapting the technology embodied in the SURFACE CHEMISTRIES IP
to MOTOROLA’s biochip platform. The SURFACE CHEMISTRIES RESEARCH PROGRAM shall commence on or
before July 31, 1999 and, unless extended by the mutual written agreement of the parties, or unless
this Agreement is earlier terminated, shall expire on the later of (i) January 31, 2000, or (ii)
the date of completion by GENOMETRIX of the tasks set forth in Exhibit E (hereinafter the
“RESEARCH TERM”). Payment of research funding by MOTOROLA and completion of the SURFACE
CHEMISTRIES RESEARCH PROGRAM shall be based upon the reasonable best efforts of GENOMETRIX to
perform the tasks specified in the RESEARCH PLAN, rather than the results generated. A draft of
the RESEARCH PLAN, describing the activities of GENOMETRIX pursuant to the SURFACE CHEMISTRIES
RESEARCH PROGRAM, is attached hereto as Exhibit E. On or before July 31, 1999, MOTOROLA
shall disclose to GENOMETRIX all MOTOROLA TECHNOLOGY necessary or useful to initiate the conduct of
the SURFACE CHEMISTRIES RESEARCH PROGRAM. Further MOTOROLA TECHNOLOGY shall subsequently be
disclosed in a timely manner as needed to complete the SURFACE CHEMISTRIES RESEARCH PROGRAM. Such
MOTOROLA TECHNOLOGY shall be deemed to be the CONFIDENTIAL INFORMATION of MOTOROLA hereunder, and
shall be treated as such pursuant to Section 10 hereof.

Upon execution of the First Amendment, the parties extended the SURFACE CHEMISTRIES RESEARCH
PROGRAM until December 31, 2000. The parties have agreed upon an amended

7

 

RESEARCH PLAN, a draft of which is attached as Exhibit E-1. GENOMETRIX shall commit
resources equivalent to at least three (3) full-time qualified employees to the SURFACE CHEMISTRIES
RESEARCH PROGRAM for the duration of the extended SURFACE CHEMISTRIES RESEARCH PROGRAM. MOTOROLA
shall pay GENOMETRIX * ($*) for this extension: * ($*) upon execution of this Amendment and each of August
1, 2000 and December 31, 2000; all subject to the completion by GENOMETRIX of the relevant
milestones set forth in the amended RESEARCH PLAN. GENOMETRIX acknowledges MOTOROLA has made the
first two payments.

     2.2 GENOMETRIX will use commercially reasonable efforts to conduct the SURFACE CHEMISTRIES
RESEARCH PROGRAM as provided in the RESEARCH PLAN. Thomas Powdrill, D.V.M (the “GENOMETRIX
PRINCIPAL INVESTIGATOR”) shall serve as the project leader, and shall keep MOTOROLA’s
representative Charles Brush, Ph.D. (the “MOTOROLA REPRESENTATIVE”) reasonably informed of the
progress of the RESEARCH PROGRAM, as set forth herein. Modifications to the RESEARCH PLAN may be
made from time to time during the RESEARCH TERM, upon the mutual written agreement of MOTOROLA and
GENOMETRIX.

     2.3 As provided in Section 2.1, completion of the SURFACE CHEMISTRIES RESEARCH PROGRAM, and
payment by MOTOROLA of the amounts set forth in Section 2.1, shall be based upon the reasonable
best efforts of GENOMETRIX to perform the specified tasks set forth in the RESEARCH PLAN, rather
than the results generated. Throughout the RESEARCH TERM, both parties shall review the results
generated, and if future tasks do not appear to be appropriate, shall in good faith and upon mutual
agreement either (i) determine an alternate course of action or (ii) terminate the SURFACE
CHEMISTRIES RESEARCH PROGRAM.

     2.4 The GENOMETRIX PRINCIPAL INVESTIGATOR, the MOTOROLA REPRESENTATIVE, and any others working
on the SURFACE CHEMISTRIES RESEARCH PROGRAM will maintain accurate scientific records relating to
the SURFACE CHEMISTRIES RESEARCH PROGRAM. It is understood that such records shall include
laboratory notebooks sufficient to document any PROGRAM TECHNOLOGY developed pursuant to the
conduct of the SURFACE CHEMISTRIES RESEARCH PROGRAM.

     2.5 Commencing on the EFFECTIVE DATE, and thereafter during the RESEARCH TERM, joint
scientific meetings between the GENOMETRIX PRINCIPAL INVESTIGATOR and the MOTOROLA REPRESENTATIVE
shall occur at least monthly by telephone or videoconference and at least once in person at
GENOMETRIX’s facilities in The Woodlands, Texas, to discuss the results generated under the SURFACE
CHEMISTRIES RESEARCH PROGRAM and to consider modifications to or an expansion of the RESEARCH PLAN
based upon such results.

     2.6 GENOMETRIX and MOTOROLA shall promptly disclose to each other all PROGRAM TECHNOLOGY
developed pursuant to the conduct of the SURFACE

8

 

CHEMISTRIES RESEARCH PROGRAM. Such PROGRAM TECHNOLOGY shall be considered as CONFIDENTIAL
INFORMATION pursuant to Section 10 hereof.

     2.7 GENOMETRIX and MOTOROLA shall require the GENOMETRIX PRINCIPAL INVESTIGATOR and the
MOTOROLA REPRESENTATIVE, respectively, and any other employees, agents or consultants of GENOMETRIX
or MOTOROLA (as the case may be) conducting activities under the SURFACE CHEMISTRIES RESEARCH
PROGRAM, to be subject to an obligation to assign to GENOMETRIX or MOTOROLA, respectively, all of
the right, title and interest of the GENOMETRIX PRINCIPAL INVESTIGATOR, the MOTOROLA
REPRESENTATIVE, or any such other employee of GENOMETRIX or MOTOROLA in the PROGRAM TECHNOLOGY.

     2.8 PROGRAM TECHNOLOGY conceived and reduced to practice solely by employees or others acting
on behalf of GENOMETRIX shall be owned solely by GENOMETRIX (hereinafter “GENOMETRIX PROGRAM
TECHNOLOGY”). PROGRAM TECHNOLOGY conceived and reduced to practice solely by employees or others
acting on behalf of MOTOROLA shall be owned solely by MOTOROLA (hereinafter “MOTOROLA PROGRAM
TECHNOLOGY”). PROGRAM TECHNOLOGY conceived and reduced to practice jointly by employees or others
acting on behalf of GENOMETRIX together with employees or others acting on behalf of MOTOROLA shall
be owned jointly by MOTOROLA and GENOMETRIX (hereinafter “JOINT PROGRAM TECHNOLOGY”). Use of any
PROGRAM TECHNOLOGY, regardless of whether such PROGRAM TECHNOLOGY is owned solely or jointly by
such party, shall be subject to the terms and conditions of this Agreement, and in particular the
provisions of Sections 2.9 and 2.10 below, and neither party shall have the right to use the
PROGRAM TECHNOLOGY, except as set forth in this Section 2.

     2.9 GENOMETRIX shall have the right to use all PROGRAM TECHNOLOGY for any purposes (including
to support the filing and prosecution of patent applications owned or controlled by GENOMETRIX)
other than use in conjunction with GEL BASED MICROARRAYS, including without limitation for
GENOMETRIX’s internal research purposes and to develop, make, use sell and import products other
than GEL BASED MICROARRAY products or microfluidic products covered by a patent or other
intellectual property right of MOTOROLA. MOTOROLA hereby grants GENOMETRIX a perpetual,
world-wide, royalty-free right and license under its interest in the PROGRAM TECHNOLOGY and under
any PROGRAM PATENT RIGHTS, for GENOMETRIX’s internal research purposes, and to develop, make, use,
offer for sale, sell and import products other than GEL BASED MICROARRAY products or microfluidic
products covered by a patent or other intellectual property right of MOTOROLA. Such license shall
include the right to grant sublicenses, except that in no event shall GENOMETRIX have the right to
grant sublicenses to any THIRD PARTY in the field of COMPLEMENTARY PRODUCTS unless GENOMETRIX first
obtains the written consent of MOTOROLA, such consent not to be unreasonably withheld or delayed.

     2.10 (a) MOTOROLA shall have the right to use the MOTOROLA PROGRAM TECHNOLOGY for its
research, development and commercial purposes in all fields of use.

9

 

     (b) MOTOROLA shall have the right to use the JOINT PROGRAM TECHNOLOGY and the
GENOMETRIX PROGRAM TECHNOLOGY for its research, development and commercial purposes in the
field of COMPLEMENTARY PRODUCTS, including to develop, make, use, sell and import E-FIELD
PRODUCTS and SURFACE CHEMISTRIES PRODUCTS. GENOMETRIX hereby grants MOTOROLA a perpetual,
worldwide, royalty-free right and license under its interest in the PROGRAM TECHNOLOGY and
the PROGRAM PATENTS to use such PROGRAM TECHNOLOGY for research and development purposes in
the field of COMPLEMENTARY PRODUCTS, and to develop, make, use, offer for sale, sell and
import COMPLEMENTARY PRODUCTS. Such license shall include the right to grant sublicenses to
one or more THIRD PARTIES in the field of COMPLEMENTARY PRODUCTS.

SECTION 3. LICENSES UNDER THE E-FIELD MANIPULATION IP, THE SURFACE CHEMISTRIES IP AND
THE OPTICAL DETECTION IP. 

     3.1 GENOMETRIX hereby grants to MOTOROLA a royalty-bearing, worldwide license under the
E-FIELD MANIPULATION IP, to make, have made, use, offer to sell, sell and import E-FIELD PRODUCTS.
GENOMETRIX shall retain the right to use the E-FIELD MANIPULATION IP only for pharmacogenomic,
genotyping and gene expression services provided by GENOMETRIX or their AFFILIATES; provided, that,
so long as MOTOROLA makes the payments set forth in Section 6.4 hereof, this license shall be
co-exclusive (with GENOMETRIX) whereby MOTOROLA shall have exclusive sublicensing rights in the
field of COMPLEMENTARY PRODUCTS, and GENOMETRIX agrees not to grant any THIRD PARTY rights under
the E-FIELD MANIPULATION IP to make, have made, use, offer to sell, sell or import E-FIELD
PRODUCTS. The foregoing notwithstanding, MOTOROLA recognizes that the rights granted to it
pursuant to this Section 3.1 are subject to the MIT AGREEMENT, and the exclusivity period set forth
therein (hereinafter the “MIT Exclusivity Period”). Prior to April 1, 2006 GENOMETRIX agrees to
use its reasonable best efforts to meet its obligations under the MIT AGREEMENT and to maintain the
MIT Exclusivity Period until April 1, 2006. Upon the expiration or early termination of the MIT
Exclusivity Period, MIT shall have the right to grant sublicenses under the E-FIELD MANIPULATION
IP. Notwithstanding the foregoing, GENOMETRIX agrees to use commercially reasonable efforts to
obtain MIT’s consent to extend the MIT Exclusivity Period so that it continues for the life of the
GENOMETRIX PATENTS comprising the E-FIELD MANIPULATION IP licensed from MIT to GENOMETRIX;
provided, that, such efforts shall not be construed to require GENOMETRIX to pay any additional
fees to MIT.

     3.2 GENOMETRIX hereby grants to MOTOROLA a royalty-bearing, perpetual, worldwide license under
the SURFACE CHEMISTRIES IP to make, have made, use, offer to sell, sell and import SURFACE
CHEMISTRIES PRODUCTS. GENOMETRIX shall retain the right to use the SURFACE CHEMISTRIES IP for any
and all purposes, including without limitation, for use in COMPLEMENTARY PRODUCTS and to make, have
made, use, offer to sell, sell and import SURFACE CHEMISTRIES PRODUCTS; provided, that, so long as
MOTOROLA makes the payments set forth in Section 6.4 hereof this license shall be co-exclusive
(with GENOMETRIX) whereby MOTOROLA shall have exclusive sublicensing

10

 

rights in the field of COMPLEMENTARY PRODUCTS, and GENOMETRIX agrees not to grant any THIRD
PARTY rights under the SURFACE CHEMISTRIES IP to make, use, sell or import SURFACE CHEMISTRIES
PRODUCTS.

     3.3 The licenses granted to MOTOROLA pursuant to Sections 3.1 and 3.2 hereof shall include the
right of MOTOROLA to grant sublicenses to THIRD PARTIES. MOTOROLA shall provide GENOMETRIX with
prompt written notice of any such sublicense, and any such sublicensee shall agree in writing to
obligations of confidentiality and restrictions on use of the GENOMETRIX INTELLECTUAL PROPERTY
which are no less stringent than the restrictions set forth herein and shall agree to be subject to
(where applicable) the MIT AGREEMENT and/or the BAYLOR AGREEMENT.

     3.4 Intentionally Omitted.

     3.5 GENOMETRIX hereby grants to MOTOROLA a non-exclusive royalty-bearing worldwide license
under the OPTICAL DETECTION IP, to make, have made, use, offer to sell, sell and import OPTICAL
DETECTION PRODUCTS. GENOMETRIX retains the exclusive right to grant further licenses and
sublicenses under the OPTICAL DETECTION IP. GENOMETRIX agrees to use commercially reasonable
efforts to negotiate and grant sublicense(s) under the OPTICAL DETECTION IP to any and all third
parties identified by MOTOROLA.

     3.6 Notwithstanding any provision to the contrary contained in this Agreement, the licenses
and options granted to MOTOROLA hereunder shall not include the field of use of a GENOSENSOR SYSTEM
as that term is defined in the COLLABORATION AGREEMENT.

     3.7 The licenses granted to MOTOROLA hereunder shall be subject to the provisions of the MIT
AGREEMENT and/or the BAYLOR AGREEMENT, to the extent set forth in such agreements, and MOTOROLA
shall be bound by certain obligations (but in all cases excluding payment obligations) to MIT and
to BAYLOR, respectively, as if it were the licensee under such agreements, only to the extent set
forth and as required in such agreements. Copies of the MIT AGREEMENT and the BAYLOR AGREEMENT are
attached to this Agreement as Exhibit B and Exhibit C, respectively. Copies of
this Agreement shall be provided by GENOMETRIX to MIT and BAYLOR under confidentiality.

     3.8 MOTOROLA hereby acknowledges that GENOMETRIX has licensed certain of the GENOMETRIX
PATENTS and the OPTICAL DETECTION IP from THIRD PARTIES, including without limitation MIT and
BAYLOR, and the rights thereto granted to MOTOROLA hereunder may be subject to compliance with and
provisions of the terms of such license agreements, including the right of THIRD PARTIES to
practice under the GENOMETRIX PATENTS and the OPTICAL DETECTION IP for non-commercial research and
academic purposes, as further provided in GENOMETRIX’s agreements with such THIRD PARTIES. If for
any reason GENOMETRIX is in default or has failed to comply with the terms of any agreement with
THIRD PARTIES concerning the GENOMETRIX PATENTS, then GENOMETRIX shall promptly give notice of such
default, termination, repudiation or cancellation to MOTOROLA who shall have the option but not the
obligation to take such steps

11

 

and make such payments as may be required in order to rectify the default and to bring the
agreements pursuant to which MOTOROLA holds the GENOMETRIX PATENTS and/or the OPTICAL DETECTION IP
into good standing; provided, that, any monies expended by MOTOROLA in so doing shall be fully
creditable against any royalties or other monies due and owing to GENOMETRIX hereunder.

     3.9 If GENOMETRIX grants a non-exclusive license or sublicense under the SURFACE CHEMISTRIES
IP to any THIRD PARTY for a field of use other than the field of COMPLEMENTARY PRODUCTS licensed to
MOTOROLA hereunder, then GENOMETRIX shall provide MOTOROLA with written notification thereof, and
MOTOROLA shall have the right, but not the obligation, to obtain the same license on terms which
are no less favorable (when taken as a whole) to MOTOROLA than the most favorable terms offered to
and accepted by any non-exclusive licensee or sublicensee, taking into account any development
funding and other consideration.

     3.10 If GENOMETRIX determines to grant an exclusive license or sublicense under the SURFACE
CHEMISTRIES IP to a THIRD PARTY in a field of use outside the field of COMPLEMENTARY PRODUCTS,
GENOMETRIX shall provide MOTOROLA with prompt written notification thereof prior to offering such
license or sublicense to a THIRD PARTY, and MOTOROLA shall have an exclusive first right and option
(the “Option”) to obtain an exclusive, world-wide, royalty-bearing license under the SURFACE
CHEMISTRIES IP, and on reasonable terms and conditions, in the field of use contemplated by
GENOMETRIX for licensing to a THIRD PARTY. MOTOROLA shall exercise such Option by providing
GENOMETRIX with written notice thereof within thirty (30) days after GENOMETRIX’s notification to
MOTOROLA hereunder (the “Option Period”). If MOTOROLA exercises the Option within the Option
Period, GENOMETRIX and MOTOROLA shall promptly thereafter commence good faith negotiations to
arrive at and execute a definitive exclusive license agreement with respect to the additional field
of use for the SURFACE CHEMISTRIES IP within sixty (60) days from the date MOTOROLA exercises the
Option hereunder (the “Negotiation Period”). If MOTOROLA fails to exercise the Option within the
Option Period, or if MOTOROLA and GENOMETRIX are unable to execute the definitive license agreement
within the Negotiation Period, GENOMETRIX shall be free to exclusively license or sublicense the
applicable field of the SURFACE CHEMISTRIES IP to a THIRD PARTY, and GENOMETRIX shall have no
further obligations to MOTOROLA with respect to thereto so long as the exclusive license has
actually been granted to a THIRD PARTY.

     3.11 Notwithstanding any other provision of this Agreement, nothing herein shall be construed
as granting or requiring either party to grant any license or rights under its intellectual
property to any party outside this Agreement.

     3.12 MOTOROLA agrees that any LICENSED PRODUCT produced for sale in the United States will be
manufactured substantially in the United States, unless any waiver of such requirement is obtained.

     3.13 All rights reserved to the United States Government and others under Public Law 96-517
and 98-620 shall remain and shall in no way be affected by this Agreement.

12

 

SECTION 4. GENOMETRIX ACCESS TO HIGH DENSITY ARRAYS.

     MOTOROLA agrees, beginning January 1, 2001 and subject to its capacity constraints, to provide
to GENOMETRIX high density arrays (i.e. arrays having more than 999 distinct probes) employing the
SURFACE CHEMISTRIES technologies developed by the extended SURFACE CHEMISTRIES RESEARCH PROGRAM on
preferred terms. GENOMETRIX shall have the right to use such high density arrays for its internal
research purposes, its genomics services businesses or as otherwise agreed. The rights granted to
GENOMETRIX in this Section 4 shall not be transferred to a THIRD PARTY without the written
permission of MOTOROLA. In addition, MOTOROLA agrees to make GENOMETRIX a preferred provider of
genomics services, and GENOMETRIX agrees to provide to MOTOROLA genomics services, such as “DNA
sample banking services,” at preferred pricing.

SECTION 5. RIGHTS TO FILE AND ENFORCE THE PROGRAM PATENTS AND THE GENOMETRIX
PATENTS

     5.1 (a) GENOMETRIX shall have the sole right to prepare, file, prosecute and maintain PROGRAM
PATENTS covering GENOMETRIX PROGRAM TECHNOLOGY (hereinafter the “GENOMETRIX PROGRAM PATENTS”).
MOTOROLA shall have the sole right to prepare, file, prosecute and maintain PROGRAM PATENTS
covering MOTOROLA PROGRAM TECHNOLOGY (hereinafter “MOTOROLA PROGRAM PATENTS”). The parties shall
jointly determine whether to prepare, file, prosecute and maintain PROGRAM PATENTS covering JOINT
PROGRAM TECHNOLOGY (hereinafter “JOINT PROGRAM PATENTS”), and in such case the parties shall
mutually agree on an acceptable patent attorney who will be responsible for the preparation,
filing, prosecution and maintenance of any such JOINT PROGRAM PATENTS. The parties agree to share
equally in all reasonable costs associated with the procurement and maintenance of any such JOINT
PROGRAM PATENTS. The parties shall consult with each other as to the preparation, filing,
prosecution and maintenance of the JOINT PROGRAM PATENTS reasonably prior to any deadline or action
with the U.S. Patent & Trademark Office or its foreign equivalent, and shall furnish to the other
party copies of relevant documents in its possession reasonably in advance of such consultation.
In the event of any disagreement relating to the preparation, filing, prosecution and maintenance
of the JOINT PROGRAM PATENTS, the dispute shall be resolved pursuant to the dispute resolution
provisions of Section 11.9 hereof. In the event that either party decides to abandon the JOINT
PROGRAM PATENTS or later declines responsibility for the prosecution or maintenance of the JOINT
PROGRAM PATENTS, on a country-by-country basis, such party shall provide reasonable prior written
notice to the other party of such intention to abandon or decline responsibility, and such other
party shall have the right, at its expense, to prepare, file, prosecute and maintain such JOINT
PROGRAM PATENTS in such country.

     (b) GENOMETRIX shall have the right to enforce and defend the GENOMETRIX PROGRAM
PATENTS. MOTOROLA shall have the sole right to enforce and defend the MOTOROLA PROGRAM
PATENTS. Enforcement of the JOINT PROGRAM PATENTS shall be determined in good faith by the
parties, and neither party shall have the right to bring an action for infringement of the
JOINT PROGRAM PATENTS without obtaining the prior written consent of the other party,

13

 

such consent not to be unreasonably withheld or delayed. Neither party may settle any
infringement or declaratory judgment action relating to the JOINT PROGRAM PATENTS without
first obtaining the written consent of the other party, such consent not to be unreasonably
withheld.

     5.2 GENOMETRIX shall have responsibility, alone or in conjunction with its licensors, for the
preparation, filing, prosecution, and maintenance of any and all patent applications and patents
comprising the GENOMETRIX PATENTS. GENOMETRIX shall promptly inform MOTOROLA regarding all matters
directly pertaining to the prosecution or maintenance of the GENOMETRIX PATENTS, to the extent such
matters specifically relate to E-FIELD PRODUCTS or SURFACE CHEMISTRIES PRODUCTS, and only to the
extent permitted by its agreements with licensors of the applicable patent or patent application.
In addition, to the extent permitted by its agreements with THIRD PARTIES, GENOMETRIX shall seek
MOTOROLA’s counsel concerning all proposed courses of action affecting the scope of such GENOMETRIX
PATENTS, to the extent any such course of action directly relates to E-FIELD PRODUCTS or SURFACE
CHEMISTRIES PRODUCTS, including, but not limited to, the countries in which patent prosecution
should be obtained, and MOTOROLA shall be provided with a reasonable opportunity to comment on any
document that GENOMETRIX intends to file or cause to be filed with the relevant intellectual
property or patent office relating directly to any such GENOMETRIX PATENTS.

     5.3 If, during the prosecution of any patent application covering any GENOMETRIX PATENT in
E-FIELD MANIPULATION IP or SURFACE CHEMISTRIES IP under which MOTOROLA has obtained a license
hereunder, GENOMETRIX decides or is advised of a decision to discontinue prosecution of the
application or maintenance of such patent, GENOMETRIX shall promptly advise MOTOROLA of the
decision and, if so requested by MOTOROLA, shall, at its sole discretion and only to the extent
permitted under GENOMETRIX’s agreements with THIRD PARTIES, continue such prosecution or
maintenance; provided, that, MOTOROLA shall bear all the costs associated with such continued
prosecution or maintenance.

     5.4 If GENOMETRIX or MOTOROLA learn of the infringement or threatened infringement of any
GENOMETRIX PATENT such party will inform the other party (GENOMETRIX or MOTOROLA, as the case may
be) in writing within thirty (30) days and provide all known evidence of the infringement. In the
event MOTOROLA is required to incur costs for any legal action related to Licensed IP, then
MOTOROLA shall be entitled to offset * (*%) of such costs from any monetary damages
received in such action, or, in the event such damages are insufficient to cover such costs, offset
any such unrecovered amount against any royalties due GENOMETRIX. If MOTOROLA takes a lead role in
any litigation involving any GENOMETRIX PATENT, MOTOROLA shall cause its counsel to also represent
GENOMETRIX (at MOTOROLA’s expense), so long as GENOMETRIX does not have an active role in the
litigation, nor an adverse position to MOTOROLA in the litigation, and so long as GENOMETRIX agrees
that MOTOROLA may control the litigation strategy.

     5.5 MOTOROLA may request in writing that GENOMETRIX take legal action against infringement or
potential infringement of a GENOMETRIX PATENT under which

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MOTOROLA has obtained a license hereunder if such infringement or potential infringement
relates to a LICENSED PRODUCT. In such case, GENOMETRIX and MOTOROLA shall confer to determine in
good faith an appropriate course of action to enforce such GENOMETRIX PATENT, or otherwise abate
the infringement thereof, to the extent permitted (where applicable) by GENOMETRIX’s agreements
with THIRD PARTY licensors of the GENOMETRIX INTELLECTUAL PROPERTY. Notwithstanding the foregoing,
and subject to the provisions of such THIRD PARTY agreements, MOTOROLA shall have the right, but
not the obligation, to enforce the GENOMETRIX PATENTS comprising the GENOMETRIX INTELLECTUAL
PROPERTY in the field of COMPLEMENTARY PRODUCTS, including, without limitation, by commencing legal
action against infringers. MOTOROLA agrees to keep GENOMETRIX reasonably informed of any
activities conducted by it pursuant to this Section 5.5. GENOMETRIX may, if requested by MOTOROLA,
join in a lawsuit commenced by MOTOROLA, but will not commence any legal action in the areas in
which MOTOROLA has rights of enforcement without the prior written consent of MOTOROLA, such
consent not to be unreasonably withheld.

     5.6 Each party will cooperate with the other in litigation proceedings against any THIRD PARTY
brought under this Agreement, except that either party may be represented, at its sole expense, by
counsel of its choice in any suit brought by the other party.

     5.7 Any information provided to MOTOROLA pursuant to this Section 5 shall be considered the
CONFIDENTIAL INFORMATION of GENOMETRIX and shall be treated in accordance with the provisions of
Section 10 hereof. Any information provided to GENOMETRIX pursuant to this Section 5 shall be
considered the CONFIDENTIAL INFORMATION of MOTOROLA and shall be treated in accordance with the
provisions of Section 10 hereof.

SECTION 6. PAYMENTS AND REPORTS

     6.1 In consideration for the rights and license granted to MOTOROLA pursuant to this
Agreement, MOTOROLA shall pay GENOMETRIX an up front license fee of *
($*). Such amount shall be payable by MOTOROLA on or before December 31, 2000,
and * (*%) of such amount shall be creditable toward the royalties (including minimum annual
royalties) to be paid by MOTOROLA to GENOMETRIX pursuant to Sections 6.2 and 6.4 hereof.

     6.2 In consideration for the rights and licenses granted hereunder, MOTOROLA shall pay
GENOMETRIX a single royalty of * (*%) of NET SALES of LICENSED PRODUCTS sold by MOTOROLA
or its SIJBSIDIAR1ES and covered by a VALID PATENT CLAIM; provided, that, such royalty shall be
fully paid-up, and no further royalty shall be due, (a) for any calendar year for which the total
royalty payments by MOTOROLA under this Section 6.2, in addition to other royalties which may be
payable by MOTOROLA to GENOMETRIX pursuant to a license agreement entered into between the parties
after the EFFECTIVE DATE in connection with the exercise by MOTOROLA of its option under the
UNIVERSAL ARRAY IP pursuant to the LICENSE AND OPTION AGREEMENT,
equals * ($*), or (b) if the total royalties paid to GENOMETRIX by

15

 

MOTOROLA under this Section 6.2
have reached * ($*). The foregoing
notwithstanding, if MOTOROLA has commercialized and continues to commercialize an OPTICAL DETECTION
PRODUCT covered by a VALID PATENT CLAIM, then the total royalty cap shall be increased by
$*. The foregoing notwithstanding, if MOTOROLA’s royalties are fully paid up
pursuant to subsection (a) or (b) hereof, and if GENOMETRIX continues to have an obligation to pay
royalties to MIT pursuant to the MIT AGREEMENT as a result of the sale, lease transfer or other
disposal of LICENSED PRODUCTS by MOTOROLA, its SUBSIDIARIES or sublicensees pursuant to this
Agreement, MOTOROLA shall pay GENOMETRIX a * GENOMETRIX; provided, that, GENOMETRIX agrees to use reasonable best efforts to obtain from MIT a
waiver of the payment of such additional royalties; and provided, further, that the term
“reasonable best efforts” shall not be interpreted to require GENOMETRIX to pay additional
consideration to MIT in order to secure such a waiver. If MOTOROLA is required to pay additional
consideration to MIT in order to maintain the Exclusivity Period (as defined in Section 3.1 hereof)
under the MIT AGREEMENT, and if MOTOROLA is continuing to pay royalties on the NET SALES of
LICENSED PRODUCTS to GENOMETRIX, the royalties owed to GENOMETRIX by MOTOROLA shall be reduced by
the amount paid by MOTOROLA to MIT in consideration for the maintenance of the Exclusivity Period.
Notwithstanding MOTOROLA’s obligation to pay royalties to GENOMETRIX on NET SALES of LICENSED
PRODUCTS sold by MOTOROLA or its SUBSIDIARIES and covered by a VALID PATENT CLAIM set forth in this
Section 6.2 or Section 6.5, the parties agree that any LICENSED PRODUCTS sold by either MOTOROLA or
CMS after it becomes a wholly-owned subsidiary of Motorola, employing E-FIELD MANIPULATION IP that
also encompass any CMS SENSOR TECHNOLOGY shall bear a single royalty of (*%) of NET
SALES of LICENSED PRODUCTS covered by a VALID PATENT CLAIM. CMS SENSOR TECHNOLOGY is defined as
the proprietary sensing technology developed by and/or licensed to Clinical Micro Sensors, Inc., a
California corporation (“CMS”) and is further defined in the Intellectual Property Agreement dated
March 31, 1999 between MOTOROLA and CMS.

     6.3 In consideration of the rights and licenses granted hereunder, MOTOROLA shall pay
GENOMETRIX (*%) of any SUBLICENSE INCOME received by MOTOROLA in consideration for
the grant of a sublicense under the GENOMETRIX PATENTS. The foregoing notwithstanding, (a) in all
cases the percentage of SUBLICENSE INCOME payable by MOTOROLA to GENOMETRIX in consideration for
the grant of a sublicense under the GENOMETRIX PATENTS shall be equal to or greater than the amount
owed by GENOMETRIX to MIT pursuant to the MIT AGREEMENT.

     6.4 GENOMETRIX acknowledges receipt to date from MOTOROLA of pre-paid minimum royalties in
amount of $*. No additional minimum royalties are due under this Agreement. Royalties shall
be calculated according to 6.2 above. As a pre-payment of future royalties due to GENOMETRIX by
MOTOROLA upon execution of this Agreement MOTOROLA shall pay GENOMETRIX * ($*), which amount will be credited against future royalties and/or sublicense income owed
to GENOMETRIX by MOTOROLA under this Agreement. The $* due on December 31, 2000, under the

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FIRST AMENDMENT TO LICENSE AND RESEARCH AGREEMENT dated March 15, 2000, and referred to in
Paragraph 2.1 above, shall be pre-paid upon execution of this Agreement.

     6.5 If one or more claims of a GENOMETRIX PATENT or the OPTICAL DETECTION IP issues and covers
a LICENSED PRODUCT under which MOTOROLA is not paying royalties to GENOMETRIX pursuant to this
Agreement as of such issue date, then, in addition to the royalties payable by MOTOROLA pursuant to
Sections 6.2, 6.3 and 6.4 above, MOTOROLA shall pay to GENOMETRIX a royalty of (*%) of
the NET SALES of the LICENSED PRODUCTS covered by such GENOMETRIX PATENT or the OPTICAL DETECTION
IP for the period of time commencing on the date of first sale of the applicable LICENSED PRODUCT
until the issue date of the applicable GENOMETRIX PATENT or the OPTICAL DETECTION IP: (a) up to a
period of time not exceed * years; and (b) if full disclosure of the applicable GENOMETRIX
PATENT was made to MOTOROLA prior to the introduction of such LICENSED PRODUCT into the commercial
marketplace; and (c) no commercial product was available during the applicable period which product
was covered by the same intellectual property without license from GENOMETRIX, except for products
made available by a THIRD PARTY to whom GENOMETRIX has provided written notice that such product
infringes the GENOMETRIX PATENTS and/or the OPTICAL DETECTION IP.

     6.6 No multiple royalties shall be payable because any LICENSED PRODUCT, its manufacture, use,
lease, sale or import are or shall be covered by more than one GENOMETRIX PATENT or the OPTICAL
DETECTION IP licensed under this Agreement or under the LICENSE and OPTION AGREEMENT, including
UNIVERSAL ARRAY PATENTS. All payments hereunder shall be paid in full, without deduction of taxes
or other fees which may be imposed by any government and which shall be paid by MOTOROLA.

     6.7 Within thirty (30) days of the close of each calendar quarter following the EFFECTIVE
DATE, MOTOROLA shall (i) deliver to GENOMETRIX a report setting forth all LICENSED PRODUCTS sold,
leased or otherwise transferred or disposed of by MOTOROLA or its SUBSIDIARIES during such calendar
quarter, which report shall indicate the NET SALES thereof and the amount of royalties due,
including a list of all deductions therefrom, or such report shall certify that no LICENSED
PRODUCTS were sold or otherwise disposed of, and (ii) to the extent royalties are owed, MOTOROLA
shall make such royalty payments to GENOMETRIX in accordance with this Section 6. In the case of
E-FIELD PRODUCTS and OPTICAL DETECTION PRODUCTS, the reports submitted by MOTOROLA to GENOMETRIX
shall contain the information and be in the form required of GENOMETRIX pursuant to Article 5 of
the MIT AGREEMENT.

     6.8 Within thirty (30) days of the grant of a sublicense under the GENOMETRIX PATENTS,
MOTOROLA shall deliver to GENOMETRIX a report setting forth the type and amounts of consideration
received in connection with the grant of such sublicense, together with the amount of SUBLICENSE
INCOME due GENOMETRIX hereunder and the calculation of such amounts, and (ii) payment of all such
SUBLICENSE INCOME owed by MOTOROLA to GENOMETRIX as of such date. The foregoing notwithstanding,
to the extent all or a portion of such SUBLICENSE INCOME is based on non-cash consideration
received by MOTOROLA, GENOMETRIX and MOTOROLA shall mutually agree in good faith to reasonable
payment

17

 

terms consistent with Section 1.26; provided, that such amount and payment terms shall be
subject to the MIT AGREEMENT and, where applicable, the consent of MIT; and provided, further, such
payment terms shall be structured in a manner whereby MOTOROLA’s payments to GENOMETRIX are
consistent with the obligations of GENOMETRIX and MOTOROLA under the MIT AGREEMENT, and any such
payments to GENOMETRIX shall be at least as great as the payments owed by GENOMETRIX to MIT
pursuant to the MIT AGREEMENT,

     6.9 Within forty-five (45) days of the close of each calendar quarter following the EFFECTIVE
DATE, MOTOROLA shall: (i) deliver to GENOMETRIX a report setting forth all LICENSED PRODUCTS sold,
leased or otherwise transferred or disposed of by MOTOROLA’s sublicensees during such calendar
quarter, which report shall indicate the NET SALES of LICENSED PRODUCTS sold by such sublicensees,
and the amount of SUBLICENSE INCOME due in connection with such sales, including a list of all
deductions therefrom, or such report shall certify that no LICENSED PRODUCTS were sold or otherwise
disposed of by sublicensees of MOTOROLA; and (ii) deliver to GENOMETRIX a report setting forth all
other SUBLICENSE INCOME received by MOTOROLA during such calendar quarter, which report shall
indicate the amount of SUBLICENSE INCOME received by MOTOROLA and the amount of such SUBLICENSE
INCOME owed to GENOMETRIX and the calculations therefore; and (iii) to the extent SUBLICENSE INCOME
is owed to GENOMETRIX, including SUBLICENSE INCOME based on the sale of LICENSED PRODUCTS by a
sublicensee of MOTOROLA, MOTOROLA shall make such SUBLICENSE INCOME payments to GENOMETRIX in
accordance with this Section 6. The foregoing notwithstanding, to the extent all or a portion of
such SUBLICENSE INCOME is based on non-cash consideration received by MOTOROLA, payments shall be
made in accordance with the reasonable payment terms agreed upon pursuant to Section 6.8. In the
case of reports of SUBLICENSE INCOME relating to the E-FIELD MANIPULATION IP or E-FIELD PRODUCTS,
the reports submitted by MOTOROLA to GENOMETRIX shall contain the information and be in the form
required of GENOMETRIX and MOTOROLA pursuant to Article 5 of the MIT AGREEMENT.

     6.10 Payments of royalties or SUBLICENSE INCOME by MOTOROLA shall be made in United States
currency and by wire transfer to such account as GENOMETRIX may specify in writing from time to
time or by check mailed to GENOMETRIX at the address set forth in Section 11.12. In the event of a
wire transfer, notice of payment shall be sent by MOTOROLA to GENOMETRIX’s address in Section
11.12. Conversion of foreign currency to United States currency shall be made at the exchange rate
prevailing at the Chase Manhattan Bank (N.A.) on the last business day of the reporting period to
which such royalty or SUBLICENSE INCOME payments relate, unless otherwise agreed in writing by
GENOMETRIX and MOTOROLA.

     6.11 Any payment hereunder which shall be delayed beyond the due date shall be subject to an
interest charge at a per annum rate equal to the greater of: (i) the prime rate in effect at the
Chase Manhattan Bank (N.A.) on the due date, or (ii) the rate which GENOMETRIX is required to pay
to a THIRD PARTY licensor, but in any event no greater than the highest rate allowed by law on the
due date. The payment of such interest shall not foreclose GENOMETRIX from exercising any other
rights it may have as a consequence of the lateness of any payment.

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     6.12 With respect to the payments set forth in this Section 6, MOTOROLA shall keep clear and
accurate records with respect to all LICENSED PRODUCTS sold or otherwise disposed of by MOTOROLA
its SUBSIDIARIES or sublicensees; provided, that, in the case of E-FIELD PRODUCTS and OPTICAL
DETECTION PRODUCTS, such records shall meet the requirements imposed on GENOMETRIX by MIT pursuant
to Article 5 of the MIT AGREEMENT. These records shall be retained by MOTOROLA for a period of
five (5) years from the date of reporting and payment, notwithstanding the expiration or other
termination of this Agreement. GENOMETRIX shall have the right, through an independent certified
public accountant chosen by GENOMETRIX and reasonably acceptable to MOTOROLA, and at the expense of
GENOMETRIX, to examine and audit, not more than once a year, and during normal business hours, all
such records and such other records and accounts as may, under recognized accounting practices,
contain information bearing upon the amount of royalties and SUBLICENSE INCOME payable to
GENOMETRIX under this Agreement. Prompt adjustment shall be made by MOTOROLA to compensate for any
errors and/or omissions disclosed by such examination or audit. Should the amount of royalties or
SUBLICENSE INCOME due as determined through the audit exceed the amount of royalties and/or
SUBLICENSE INCOME reported to be due by MOTOROLA by (*%) or *, whichever is greater, then MOTOROLA shall pay the full cost of the audit.

SECTION 7. TERM, TERMINATION AND ASSIGNABILITY

     7.1 The term of this Agreement shall be from the EFFECTIVE DATE until expiration of the last
patent or disallowance of the last GENOMETRIX PATENT, patents included in the OPTICAL DETECTION IP
or PROGRAM PATENT under which MOTOROLA has obtained a license pursuant to this Agreement, unless
earlier terminated as provided elsewhere in this Agreement.

     7.2 In the event of any material breach of this Agreement by either party hereto, if such
breach is not corrected within thirty (30) days after written notice to the breaching party in the
case of a breach in the payment of royalties or SUBLICENSE INCOME under Section 6, or within
forty-five (45) days after written notice to the breaching party for all other breaches, the
non-breaching party may, at its option terminate this Agreement.

     7.3 The parties hereto acknowledge and agree that: (a) in the event of the termination of the
MIT AGREEMENT, this Agreement shall not terminate and MOTOROLA shall become a licensee of MIT as
set forth in Section 13.6 of the MIT AGREEMENT; and (b) in the event of the termination of the
BAYLOR AGREEMENT, the rights and obligations of MOTOROLA hereunder with respect to SURFACE
CHEMISTRIES IP and SURFACE CHEMISTRIES PRODUCTS specific to the BAYLOR AGREEMENT shall be
terminated; provided, that, GENOMETRIX shall have no objection if MOTOROLA enters into good faith
discussions with BAYLOR in order to continue its rights and obligations under the SURFACE
CHEMISTRIES IP originally licensed to GENOMETRIX pursuant to the BAYLOR AGREEMENT.

     7.4 The rights or privileges provided for in this Agreement may be assigned or transferred by
either party only with the prior written consent of the other party, except that either party may
assign its rights under this Agreement, with the exception of section 4, to a

19

 

successor in ownership of all or substantially all of its assets relating to the subject
matter of this Agreement.

     7.5 Sections 2.8, 2.9, 2.10, 5,1, 5.6, 5.7, Section 6 with respect to payment and reporting
obligations covering the sale, lease, transfer or sublicensing of intellectual property, products
or services prior to the effective date of such expiration or termination, this Section 7.5, and
Sections 8, 10 and 11 shall survive the expiration or termination of this Agreement. The
termination, relinquishment or expiration of this Agreement for any reason shall be without
prejudice to any rights which shall have accrued to the benefit of either party under this
Agreement prior to such termination, relinquishment or expiration. Such termination,
relinquishment or expiration shall not relieve either party from obligations which are expressly
indicated to survive termination or expiration of this Agreement.

     7.6 To avoid cancellation of the sublicense under the SURFACE CHEMISTRIES IP, MOTOROLA shall
have the right to purchase substantially all of the assets relating to SURFACE CHEMISTRIES IP prior
to entry by GENOMETRIX into bankruptcy or other form of liquidation which would allow BAYLOR to
terminate its license to GENOMETRIX and GENOMETRIX’s sublicensee.

SECTION 8. PRODUCT LIABILITY, INSURANCE AND INDEMNIFICATION

     8.1 E-FIELD MANIPULATION IP AND OPTICAL DETECTION IP.

     (a) In the case of E-FIELD MANIPULATION IP and E-FIELD PRODUCTS and OPTICAL DETECTION
IP and OPTICAL DETECTION PRODUCTS, MOTOROLA shall at all times during the term of this
Agreement and thereafter, indemnify, defend and hold GENOMETRIX, MIT, HARC, and BAYLOR,
their trustees, directors, officers, employees and affiliates harmless against all claims,
proceedings, demands and liabilities of any kind whatsoever, including legal expenses and
reasonable attorneys’ fees, arising out of the death of or injury to any person or persons
or out of any damage, to property, resulting from the production, manufacture, sale, use,
lease, consumption or advertisement of E-FIELD PRODUCT(s) or OPTICAL DETECTION PRODUCTS (s)
by MOTOROLA.

     (b) Prior to the first use of an E-FIELD PRODUCT or an OPTICAL DETECTION PRODUCT for a
commercial application involving human subjects, MOTOROLA shall obtain and carry in full
force and effect commercial, general liability insurance which shall protect GENOMETRIX,
MOTOROLA, MIT, HARC, and BAYLOR with respect to events covered by Section 8.1(a) above.
Such insurance shall be written by a reputable insurance company authorized to do business
in The Commonwealth of Massachusetts, shall list GENOMETRIX, MIT, HARC, and BAYLOR as
additional named insured thereunder, shall be endorsed to include product liability coverage
and shall require thirty (30) days written notice to be given to MIT, HARC, and BAYLOR prior
to any cancellation or material change thereof. The limits of such insurance shall not be
less than * ($*) per occurrence with an aggregate of * for personal

20

 

injury or death,
and * per occurrence with an
aggregate of * ($*) for property damage. MOTOROLA shall
provide GENOMETRIX, HARC, and BAYLOR with Certificates of Insurance evidencing the same.

     8.2 SURFACE CHEMISTRIES IP.

     (a) In the case of the SURFACE CHEMISTRIES IP and SURFACE CHEMISTRIES PRODUCTS, each
party shall notify the other of any claim, lawsuit or other proceeding related to the
SURFACE CHEMISTRIES IP. MOTOROLA agrees that it will defend, indemnify and hold harmless
GENOMETRIX, BAYLOR, MIT, HARC, and each of their respective faculty members, scientists,
researchers, employees, officers, trustees, directors, and agents and each of them (the
“Indemnified Parties”), from and against any and all claims, causes of action, lawsuits or
other proceedings filed or otherwise instituted against any of the Indemnified Parties
related directly or indirectly to or arising out of an act or omission of MOTOROLA in the
design, manufacture, use or sale of a SURFACE CHEMISTRIES PRODUCT, or any other embodiment
of the SURFACE CHEMISTRIES IP.

     (b) MOTOROLA shall, for so long as MOTOROLA manufactures, uses or sells any SURFACE
CHEMISTRIES PRODUCT maintain in full force and effect policies of (i) worker’s compensation
and/or employers’ liability insurance within statutory limits and (ii) general liability
insurance (with Broad Form General Liability endorsement) with limits of not less than
* per occurrence with an annual aggregate of * and (iii) products liability insurance, with limits of not
less than * per occurrence with an annual aggregate of
*. Such coverage(s) shall be purchased from a carrier or
carriers reasonably acceptable to GENOMETRIX and BAYLOR, and shall name GENOMETRIX and
BAYLOR as an additional insured. Upon request by GENOMETRIX, MOTOROLA shall provide to
GENOMETRIX and/or BAYLOR copies of said policies of insurance.

SECTION 9. WARRANTIES

     9.1 GENOMETRIX warrants that except as otherwise set forth herein and in the Exhibits
attached hereto, including without limitation the MIT AGREEMENT and the BAYLOR AGREEMENT, to the
best of its knowledge it owns or has license rights to the GENOMETRIX PATENTS, free and clear of
all liens, encumbrances, and claims or demands of THIRD PARTIES.

     9.2 Each party warrants that it has the authority to enter into this Agreement.

     9.3 GENOMETRIX warrants that, to the best of its knowledge, Exhibit A sets forth all
patents or patent applications claiming E-FIELD MANIPULATION IP, SURFACE CHEMISTRIES IP and OPTICAL
DETECTION IP owned, controlled, or licensed by GENOMETRIX as of the EFFECTIVE DATE. To the best of
GENOMETRIX’s knowledge, all

21

 

patents listed in Exhibit A are valid and in full force and all patent applications
listed therein as pending have been prosecuted in good faith as required by law and are in good
standing. To the best knowledge of GENOMETRIX, none of the patents or patent applications listed
in Exhibit A is involved in any interference or opposition proceeding, and there has been
no written notice received by GENOMETRIX that such proceeding will hereafter be commenced.

     9.4 GENOMETRIX warrants that, to the best of its knowledge as of the EFFECTIVE DATE, its
licenses with MIT and BAYLOR are in good standing and that as of the EFFECTIVE DATE it has
satisfied the 1998 minimum sales requirements set forth in the MIT AGREEMENT in order to maintain
the MIT Exclusivity Period (as defined in Section 3.1 hereof), and that it is capable of satisfying
the minimum sales requirements for 1999 in order to maintain the MIT Exclusivity Period.

     9.5 GENOMETRIX warrants that, to the best of its knowledge as of the EFFECTIVE DATE, it has no
knowledge or information that practice of the E-FIELD MANIPULATION IP, the SURFACE CHEMISTRIES IP,
the UNIVERSAL ARRAY IP or the OPTICAL DETECTION IP constitutes infringement of any third party
patents.

     9.6 EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS AGREEMENT, GENOMETRIX, ITS TRUSTEES,
DIRECTORS, OFFICERS, EMPLOYEES AND SUBSIDIARIES MAKE NO REPRESENTATIONS AND EXTEND NO WARRANTIES OF
ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO WARRANTIES OF MERCHANTABILITY, FITNESS
FOR A PARTICULAR PURPOSE, VALIDITY OF THE GENOMETRIX PATENTS, CLAIMS, ISSUED OR PENDING, AND THE
ABSENCE OF LATENT OR OTHER DEFECTS, WHETHER OR NOT DISCOVERABLE. NOTHING IN THIS AGREEMENT SHALL
BE CONSTRUED AS A REPRESENTATION MADE OR WARRANTY GIVEN BY GENOMETRIX THAT THE PRACTICE BY MOTOROLA
OF THE LICENSES GRANTED HEREUNDER SHALL NOT INFRINGE THE PATENT RIGHTS OF ANY THIRD PARTY. EXCEPT
AS EXPRESSLY STATED HEREIN, IN NO EVENT SHALL GENOMETRIX, ITS TRUSTEES, DIRECTORS, OFFICERS,
EMPLOYEES OR SUBSIDIARIES BE LIABLE FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND, INCLUDING
ECONOMIC DAMAGE OR INJURY TO PROPERTY AND LOST PROFITS.

SECTION 10. CONFIDENTIALITY

     10.1 CONFIDENTIAL INFORMATION means any materials or information provided by a party (the
“Disclosing Party”) to the other party (the “Receiving Party”), regardless of whether such
information is provided in written, oral, electronic or other form, except that CONFIDENTIAL
INFORMATION shall not include information or materials which:

     (a) are in possession of the Receiving Party at the time of disclosure thereof as
demonstrated by prior written records;

22

 

     (b) are or later become part of the public domain through no fault of the Receiving
Party;

     (c) are received by the Receiving Party from a THIRD PARTY having a lawful right to
disclose same and having no obligation of confidentiality to the Disclosing Party with
respect thereto;

     (d) are developed independently by the Receiving Party without use of or access to the
Confidential Information, as evidenced by competent written records; or

     (e) are required by law or regulation to be disclosed; provided, however, that the
Receiving Party has provided prompt, advance written notice to the Disclosing Party so as to
enable the Disclosing Party to seek a protective order or otherwise prevent disclosure of
such Confidential Information.

     10.2 The Receiving Party agrees that the CONFIDENTIAL INFORMATION of the Disclosing Party
shall be maintained in strict confidence and shall not be disclosed, divulged or otherwise
communicated by the Receiving Party to any THIRD PARTY or used by the Receiving Party or any THIRD
PARTY for any purposes other than as expressly provided in this Agreement.

     10.3 Neither party shall issue any press release or make any public announcement relating to
this Agreement without the prior written approval of the other party.

SECTION 11. MISCELLANEOUS PROVISIONS

     11.1 MOTOROLA shall at all times during the term of this Agreement and for so long as it shall
practice the GENOMETRIX PATENTS or the OPTICAL DETECTION IP, or develop, make, use or sell LICENSED
PRODUCTS, comply with all laws that may control the import, export, manufacture, use, sale,
marketing, distribution and other commercial exploitation of LICENSED PRODUCTS or any other
activity undertaken pursuant to this Agreement.

     11.2 Nothing contained in this Agreement shall be construed as:

     (a) conferring any license or other right, by implication, estoppel or otherwise, under
any patent application, patent or patent right, except as herein expressly granted; or

     (b) conferring any license or right with respect to any trademark, trade or brand name,
a corporate name of any party, or any other name or mark, or contraction, abbreviation or
simulation thereof.

     11.3 No express or implied waiver by either of the parties to this Agreement of any breach of
any term, condition or obligation of this Agreement by the other party shall be construed as a
waiver of any subsequent breach of that term, condition or obligation or of any other term,
condition or obligation of this Agreement of the same or of a different nature.

23

 

     11.4 This Agreement is the result of negotiation between the parties and, accordingly, shall
not be construed for or against either party regardless of which party drafted this Agreement or
any portion thereof.

     11.5 Nothing in this Agreement shall be construed as creating a partnership, joint venture, or
other formal business organization of any kind.

     11.6 Except as expressly stated herein, in no event shall either party be liable to the other
party by reason of this Agreement or any breach or termination of this Agreement for any loss of
prospective profits or incidental or special or consequential damages.

     11.7 The headings and captions used in this Agreement are for convenience only, and are not to
be used in interpreting the obligations of the parties under this Agreement.

     11.8 Governing Law.

     (a) To the extent required by the BAYLOR AGREEMENT, the performance of this Agreement
as it relates to rights and licenses granted under the SURFACE CHEMISTRIES IP shall be
subject to, made under, and shall be construed and interpreted in accordance with the laws
of the State of Texas, and no conflict-of-laws rule or law that might refer such
construction and interpretation to the laws of another state, republic, or country shall be
considered. To the extent required by the BAYLOR AGREEMENT, this Agreement is performable
in part in Harris County, Texas, and the parties mutually agree that, to the extent required
by the BAYLOR AGREEMENT, personal jurisdiction and venue shall be proper in the state and
federal courts situated in Harris County, Texas, and, to the extent required by the BAYLOR
AGREEMENT, agree that any litigated dispute relating to the SURFACE CHEMISTRIES IP or
SURFACE CHEMISTRIES PRODUCTS will be conducted solely in such courts.

     (b) To the extent required by the MIT AGREEMENT, this Agreement, as it relates to
rights and licenses granted under the E-FIELD MANIPULATION IP and the OPTICAL DETECTION IP,
shall be construed, governed, interpreted and applied in accordance with the laws of the
Commonwealth of Massachusetts, U.S.A., except that questions affecting the construction and
effect of any patent shall be determined by the law of the country in which the patent was
granted.

     (c) In all cases not covered by Sections 11.8(a) and 11.8(b) above, the performance of
this Agreement as it relates to rights and licenses granted to MOTOROLA shall be subject to,
made under, and shall be construed and interpreted in accordance with the laws of the State
of Delaware.

     11.9 Dispute Resolution.

     (a) Disputes relating to the E-FIELD MANIPULATION IP and E-FIELD PRODUCTS and OPTICAL
DETECTION IP and OPTICAL DETECTION PRODUCTS shall be governed by the provisions of this
Section 11.9(a). Except for the right of either

24

 

party to apply to a court of competent jurisdiction for a temporary restraining order,
a preliminary injunction, or other equitable relief to preserve the status quo or prevent
irreparable harm, any and all claims, disputes or controversies arising under, out of, or in
connection with this Agreement, including any dispute relating to patent validity or
infringement, which the parties shall be unable to resolve within sixty (60) days shall be
mediated in good faith. The party raising such dispute shall promptly advise the other
party of such claim, dispute or controversy in a writing which describes in reasonable
detail the nature of such dispute. If the parties are unable to resolve such dispute within
such sixty (60) day period, either party may demand mediation by written notice to the other
party. By not later than ten (10) business days after the recipient has received such
demand for mediation, each party shall have selected for itself a representative who shall
have the authority to bind such party, and shall additionally have advised the other party
in writing of the name and title of such representative. By not later than twenty (20)
business days after the date of such demand for mediation, the party against whom the
dispute shall be raised shall select a mediation firm in the Boston area which is acceptable
to the other party (which acceptance shall not be unreasonably withheld) and such
representatives shall schedule a date with such firm for a mediation hearing. Within thirty
(30) days after the selection of the mediation firm, the parties shall enter into good faith
mediation and shall share the costs equally. If the representatives of the parties have not
been able to resolve the dispute within fifteen (15) business days after such mediation
hearing, the parties shall have the right to pursue any other remedies legally available to
resolve such dispute in either the courts of The Commonwealth of Massachusetts or in the
United States District Court for the District of Massachusetts, to whose jurisdiction for
such purposes GENOMETRIX and MOTOROLA each hereby irrevocably consents and submits.
Notwithstanding the foregoing, nothing in this Section 11.9(a) shall be construed to waive
any rights or timely performance of any obligations existing under this Agreement.

     (b) Disputes arising out of this Agreement and not covered by Section 11.9(a) above
shall be governed by this Section 11.9(b). The parties agree to attempt to settle all such
disputes amicably between them. The parties agree that any such dispute (other than
relating to the scope or validity of a patent and other than a dispute that is covered by
Section 11.9(a) above, will be submitted to non-binding arbitration in a mutually agreeable
location in accordance with the commercial rules and procedures of the American Arbitration
Association, before a single arbitrator who will be reasonably familiar with the relevant
industry. Each party shall pay its own costs in connection with such arbitration and one
half of the fees of the arbitrator. While the parties agree to attempt arbitration in good
faith, nothing in this Section 11.9(b) shall be construed as limiting the rights of either
party to take legal action as it deems necessary to enforce its rights under this Agreement.

     (c) Motorola and Genometrix agree that any future liability or other obligation with
respect to the inclusion or recognition of non-cash value in SUBLICENSE INCOME according to
the Definitions and agreements herein, or any accounting and payment of legal expenses by
Motorola associated with LICENSED IP according to 5.4

25

 

herein, shall be the sole responsibility of Motorola. In this regard, Motorola hereby
indemnifies and agrees to defend, and hold Genometrix and their AFFILIATES, Directors and
Officers harmless against any claim by or on behalf of M.I.T. with respect to the same.

     11.10 If any term, clause, or provision of this Agreement shall be judged to be invalid, the
validity of any other term, clause, or provision shall not be affected, and such invalid term,
clause, or provision shall be deemed deleted from this Agreement.

     11.11 This Agreement, including the Exhibits attached hereto and incorporated herein
by reference, sets forth the entire agreement and understanding between MOTOROLA and GENOMETRIX as
to the subject matter hereof, and supersedes and merges any and all prior discussions,
correspondence, agreements or understandings between the parties with respect to such matters,
including without limitation (i) the Non-Disclosure Agreement by and between the parties and dated
June 2, 1998; (ii) the Memorandum of Understanding dated November 4, 1998, and (iii) the Memorandum
of Understanding dated June 24, 1999. The LICENSE AND OPTION AGREEMENT remains in effect,
provided, however, with respect to the E-FIELD MANIPULATION IP and the SURFACE CHEMISTRIES IP,
except where expressly set forth herein, the rights and licenses granted to MOTOROLA pursuant to
the LICENSE AND OPTION AGREEMENT with respect to the E-FIELD MANIPULATION IP and E-FIELD PRODUCTS,
and with respect to the SURFACE CHEMISTRIES IP and SURFACE CHEMISTRIES PRODUCTS are terminated.
This Agreement also expressly supersedes the LICENSE AND OPTION AGREEMENT with respect to the
E-FIELD MANIPULATION IP and E-FIELD PRODUCTS and the SURFACE CHEMISTRIES IP and SURFACE CHEMISTRIES
products, and in the event of any inconsistency between this Agreement and the LICENSE AND OPTION
AGREEMENT with respect to such IP and PRODUCTS, the provisions of this Agreement shall prevail.
Neither party shall be bound by any conditions, definitions, warranties, understandings or
representations with respect to such subject matter other than as expressly provided herein
(including the Exhibits attached hereto and incorporated herein by reference) or as duly
set forth on or subsequent to the date hereof in writing and signed by a proper and duly authorized
official of the party to be bound thereby.

     11.12 All notices required or permitted to be given hereunder shall be in writing and shall be
valid and sufficient if dispatched by registered mail, postage prepaid, in any post office in the
United States, or by recognized courier service providing evidence of receipt, addressed as
follows:

	 	 	 
	     If to MOTOROLA to:

	 	MOTOROLA, Inc.
	 

	 	1303 East Algonquin Road
	 

	 	Schaumberg, Illinois 60196
	 

	 	Attention: Vice President for
	 

	 	Patents, Trademarks & Licensing

26

 

	 	 	 
	     With a copy to:

	 	MOTOROLA, Inc.
	 

	 	4088 Commercial Avenue
	 

	 	Northbrook, IL 60062
	 

	 	Attention: Director of Contracts
	 
	 	 
	     If to GENOMETRIX to:

	 	Genometrix Incorporated
	 

	 	2700 Research Forest Drive
	 

	 	The Woodlands, Texas 77381
	 

	 	Attention: Mitchell D. Eggers, Ph.D.
	 

	 	Chief Executive Officer

     11.13 The date of receipt of such a notice shall be the date for the commencement of the
running of the period provided for in such notice, or the date at which such notice takes effect,
as the case may be.

     11.14 For the term of this Agreement, and for one (1) year after the expiration or termination
of this Agreement, MOTOROLA agrees not to solicit any employees of GENOMETRIX without the prior
written consent of GENOMETRIX, except through advertisements and solicitations directed to the
market generally. For the term of this agreement, and for one (1) year after the expiration or
termination of this Agreement, GENOMETRIX agrees not to solicit any employees of MOTOROLA BioChip
Systems without the prior written consent of MOTOROLA, except through advertisements and
solicitations directed to the market generally.

     [Remainder of page intentionally left blank]

27

 

     IN WITNESS WHEREOF, each party hereto has caused this Agreement to be executed by its duly
authorized representatives:

	 	 	 	 	 	 	 	 	 	 	 
	Motorola, Inc.	 	 	 	Genometrix Incorporated	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Nicholas Naclerio
	 	 
	 	By:
	 	/s/ Mitchell Eggers
	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	Nicholas Naclerio
	 	 	 	 	 	Mitchell D. Eggers, Ph.D.	 	 
	 

	 	Vice President and General Manager
	 	 	 	 	 	Chief Executive Officer	 	 

	 	 	 	 	 
	 	 	 
	By:  	/s/ Jonathan Meyer
 	 	 
	 	 	Jonathan Meyer 	 	 
	 	Title:  	Corporate Vice President,

Assistant General Counsel, and

 Director of Patents, Trademarks and Licensing 	 	 
	 

28EX-10.8

Exhibit 10.8 to the Registration Statement

Dated December 22, 2004

(1) OXFORD GENE TECHNOLOGY IP LIMITED

(2) OXFORD GENE TECHNOLOGY LIMITED

and

(2) CLINICAL MICRO SENSORS, INC.

 

LICENCE AGREEMENT

 

 

 

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

LICENCE AGREEMENT

PART (A) VARIABLE TERMS

	 	 	 
	Effective Date	 	December 22, 2004
	Parties

	 	 (1)
OXFORD GENE TECHNOLOGY IP LIMITED a company
incorporated in England and Wales under number
3845467, whose registered office is at 12 School
Road, Kidlington, Oxford OX5 2HB (“OGT”);

	 
	 	 
	 

	 	 (2) OXFORD GENE TECHNOLOGY LIMITED a company
incorporated in England and Wales under number
3043815, whose registered office is at 12 School
Road, Kidlington, Oxford OX5 2HB (“OCT Limited”);

	 
	 	 
	 

	 	 (3) CLINICAL MICRO SENSORS, INC. a company
incorporated in Delaware whose principal place of
business is at 126 West Del Mar Boulevard,
Pasadena, California 91105, USA (“the Licensee”).

	 
	 	 
	Licensed Patent Rights

	 	European Patent No. 0 373 203; US Patent No.
6,054,270; Japanese Patents Nos. 3,393,528 and
3,386,391 and all applications for patents and
future patents claiming common priority with any of
those patents, including all continuations,
continuations-in-part, divisions, renewals, patents
of addition, extensions and reissues of those
patents and applications, in each case anywhere in
the world.
	 
	 	 
	Licence Maintenance 

Fee

	 	US$*
	 
	 	 
	Initial Licence Fee

	 	US$*
	 
	 	 
	Royalty Rates

	 	 (a)  Licensed Products: *

	 
	 	 
	 

	 	
(b)  Licensed Services: *

	 
	 	 
	Notices

	 	OGT and OGT Limited: 12 School Road, Kidlington,
Oxford, OX5 2HB, Attn: Company Secretary 

With a copy to: The Hirsch Building, Begbroke
Business & Science Park, Sandy Lane, Yarnton,
Oxford OX5 1PF

Licensee: 126 West Del Mar Blvd., Pasadena,
California 91105, Attn: Gary Blackburn 

With a copy to: Motorola, Inc., 21440 West Lake
Cook Road, Deer Park, Illinois, Attention:
 Director of Law Department

 

 

This Agreement comprises the Variable Terms in Part A and the Terms and Conditions in Part B.

AGREED by the parties acting through their authorized signatories:

	 	 	 	 	 
	OXFORD GENE TECHNOLOGY IP LIMITED

 	 	 
	Signature: 	 /s/ Peter Hotten
 	 	 
	Print Name:  	Peter Hotten 	 	 
	Title:  	Director
 	 	 
	Date: December 22, 2004 	  	 
	 
	OXFORD GENE TECHNOLOGY LIMITED

 	 	 
	Signature: 	 /s/ Peter Hotten
 	 	 
	Print Name:  	Peter Hotten 	 	 
	Title:  	Director
 	 	 
	Date: December 22, 2004 	  	 
	 
	CLINICAL MICRO SENSORS, INC.

 	 	 
	Signature: 	 /s/ Cynthia Collins
 	 	 
	Print Name:  	Cynthia Collins 	 	 
	Title:  	VP General Manager

 	 	 
	Date: December 22, 2004 	  	 
	 

2

 

PART (B) TERMS AND CONDITIONS

	1.	 	DEFINITIONS AND INTERPRETATION
	 
	 	 	In Part B of this Agreement and in the attached Schedules, which are each incorporated
herein by reference, the following words and expressions have the meanings set out below:
	 
	1.1	 	“the Additional Licence Fees” means the fees so described in Schedule 2.
	 
	1.2	 	“Affiliate” of a party means any present or future Entity that Controls, is Controlled by, or
is under the Control of the same Entity or Entities as, that party, but only for so long as
that control continues.
	 
	1.3	 	“this Agreement” means the agreement between OGT, OGT Limited and the Licensee set out in
Parts A and B.
	 
	1.4	 	“Confidential Information” means all technical, financial and commercial information obtained
or received directly or indirectly from a party in the course of or in anticipation of this
Agreement.
	 
	1.5	 	“Calendar Quarter” means a period of three months ending on 31 March, 30 June, 30 September
or 31 December.
	 
	1.6	 	“CMA Annual Revenues” means the revenues of any nature recognized by the Licensee and all
Affiliates of the Licensee on a calendar year which are attributed to the CMS Business,
including all revenue from the sale of products and the supply of services and all payments
and grants received from whatever source for the conduct of research and in relation to the
evaluation or testing of products or the conduct of trials, in each case related to the CMS
Business.
	 
	1.7	 	“the CMS Business” means the business carried on as at the Effective Date by the Licensee and
its Affiliates relating to the development and commercialisation of products and services for
the electrochemical detection and/or analysis of nucleic acids, as that business may develop
during the Term.
	 
	1.8	 	“CMS Cumulative Revenues” means the aggregate revenues of any nature recognized by the
Licensee and all Affiliates of the Licensee from the First Sale Date which are attributable to
the CMS Business, including all revenue from the sale of products and the supply of services
and all payments and grants received from whatever source for the conduct of research and in
relation to the evaluation or testing of products or the conduct of trials, in each case
related to the CMS Business.
	 
	1.9	 	“the Commercial Licence” means the license as expanded pursuant to clause 3.2.

3

 

	1.10	 	“Control” means:

	 	(a)	 	the possession, directly or indirectly, of more than 50% of the issued share
capital, issued stock, or other securities of, or the voting rights in an Entity or the
right to receive more than 50% of the income, profits or assets of an Entity; or
	 
	 	(b)	 	the possession, directly or indirectly, of the right to appoint or remove the
majority of the board of directors or other officers of an Entity or of those directors
or officers who have voting rights in relation to the Entity’s management; or
	 
	 	(c)	 	the possession, directly or indirectly of the power, right or ability to
direct, or cause the direction of management of policies of an Entity, whether through
legal or beneficial ownership of voting rights by contract or otherwise; or
	 
	 	(d)	 	the actual direction of the management or notices of an Entity by whatever
means.

	1.11	 	“Covered by a Valid Claim” means, in relation to a product, that its manufacture,
importation, Supply or permitted or intended use, and in relation to a process that its
practice, infringes, or would but for the licences granted in this Agreement infringe, a Valid
Claim.
	 
	1.12	 	“Customer Support” means training and after sales support provided to a customer.
	 
	1.13	 	“Database Product” means a collection of information derived from one or more Nucleic Acid
Arrays which is licensed for value to more than one third party.
	 
	1.14	 	“the Effective Date” means the date of this Agreement as provided above.
	 
	1.15	 	“End User” means an end-user or Licensed Products Supplied by the Licensee under this
Agreement whether for internal use or in the provision of services to third parties.
	 
	1.16	 	“Entity” means any natural or legal person, partnership, association or governmental
authority.
	 
	1.17	 	“the eSensor Generation 1 Products” means the products described in Schedule 6.
	 
	1.18	 	“Expression Database Product” means a Database Product consisting entirely or substantially
of gene expression data and containing at least five hundred data points, where a single data
point is data relating to the level of expression of one gene in one sample.
	 
	1.19	 	“the Field” means electrochemical analysts and/or detection of nucleic acids for any purpose
but specifically excludes any of the following activities.

	 	(a)	 	the exercise of any of the rights licensed under this Agreement for the purpose
of the manufacture, having manufactured, use, Supply, creation or contribution to the
creation of Expression Database Products;

4

 

	 	(b)	 	the manufacture of Nucleic Acid Arrays by In-Situ Synthesis; and

	 	(c)	 	the use of Nucleic Acid Arrays for the identification of antisense therapeutic
reagents or for the express purpose of the empirical design of probes or sets of probes
for using or making Nucleic Acid Arrays, provided that the Field does not exclude the
use of Nucleic Acid Arrays in the design of probes for use in Licensed Products
manufactured by or on behalf of the Licensee or used, imported, offered for Supply or
Supplied by the Licensee.

	1.20	 	“First Sale Date: means the date on which the Licensee makes its first commercial Supply of a
Licensed Product or a Licensed Service as notified to OGT pursuant to clause 3.1 provided,
however, that no activity under clause 2 shall be deemed to be a commercial Supply.
	 
	1.21	 	“Improvement Patent” means a granted patent which:

	 	(a)	 	is not included in, nor claims common priority with a patent or application
included in, the Licensed Patent Rights, as they exist on the Effective Date;
	 
	 	(b)	 	is owned by OGT or an Affiliate of OGT, or is licensed to OGT or an Affiliate
of OGT with the right to sub-license; and
	 
	 	(c)	 	can be exploited in a manner that falls within a patent that has been granted
and that is included in, or that claims common priority with an application that is
included in, the Licensed Patent Rights as they exist on the Effective Date.

	1.22	 	“the Initial Licence Fee” means the amount specified in Part A.
	 
	1.23	 	“In-Situ Synthesis” means any method for making Nucleic Acid Arrays in which nucleic acids
are synthesized on the Nucleic Acid Array.
	 
	1.24	 	“Insolvency Event” means (1) the filing by the licensee of a petition in bankruptcy or
insolvency; (2) any adjudication that the Licensee is a “debtor under Title 11 of the united
States Code, or is bankrupt or insolvent; (3) the filing by the Licensee of any petition,
notice or pleading seeking reorganization, readjustment or arrangement of its business under
any law relating to bankruptcy or insolvency; (4) the appointment of a receiver for all or
substantially all of the property of the Licensee; (5) the making by the Licensee of any
assignment for the benefit of creditors; (6) the institution of any proceedings for the
liquidation or winding up of the Licensee’s business or for the termination of its corporate
charter; or (7) any similar or analogous event happens in relation to the Licensee under the
bankruptcy, liquidation or insolvency laws of any country other than the USA; provided that in
the case of points (2), (4), (6) and (7) above any such event has not been dismissed, stayed
or withdrawn within 90 days of such event occurring.
	 
	1.25	 	“the Licence Maintenance Fee” means the amount specified in Part A.

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	1.26	 	“the Licensed Patent Rights” means the patents and patent applications specified in Part A
which each expire on or before May 2, 2009 and any Improvement Patents included pursuant to
clause 4.3 subject to the provisions of that clause.
	 
	1.27	 	“Licensed Process” means any process or method that is covered by a Valid Claim.
	 
	1.28	 	“Licensed Product” means a Nucleic Acid Array that is Covered by a Valid Claim.
	 
	1.29	 	“Licensed Service” means any service, including the Supply of a Database Product or
information (except where the information is an integral part of a Licensed Product which is
itself Supplied), in the provision of which a Licensed Process is used or a Licensed Product
is used but is not Supplied and provided always that if a Licensed Product is used it has been
manufactured by or for the Licensee.
	 
	1.30	 	“Milestone Payments” means the payments described in Schedule 1.
	 
	1.31	 	“Net Sales” means the price invoiced by the Licensee and any of its Affiliates for the arms
length Supply of a Licensed Product or Licensed Service to a third party that is not an
Affiliate of the Licensee, excluding those of the following that are separately identified on
the invoice; transport and shipping charges; insurance; customs duties; and sales use and
turnover taxes. For this purpose the price includes the following: technology access fees
and subscription payments charged in consideration for access to Licensed Products or Licensed
Services, any monetary consideration for the right to obtain Licensed Products or Licensed
Services at a discounted or reduced price, regardless of how many such Licensed Products or
Licensed Services are actually obtained, licence fees, milestone payments, royalties and any
other form of valuable consideration which is accepted in exchange for Licensed Products
and/or Licensed Services. The price for a Licensed Product Supplied by the Licensee includes
all charges for any associated services, including without limitation the design and
manufacture of Licensed Products, maintenance and support services, advisory services and
installation services.
	 
	1.32	 	Subject to clause 1.33 below, and notwithstanding the foregoing, if the Licensee:

	 	(a)	 	Supplies a Licensed Product or Licensed Service wholly or partly for any
non-monetary consideration, for no consideration or otherwise than at arm’s length.
	 
	 	(b)	 	Supplies a Licensed Product or Licensed Service to an Affiliate which does not
itself re-supply that Licensed Product or Licensed Service (or the date arising from
the Licensed Services to a third party which is not an Affiliate; or
	 
	 	(c)	 	itself uses a Licensed Product or practices a Licensed Process other than in
the provision of a Licensed Service;

then the Net Sales will be the Licensee’s average commercial End-User price for the Licensed
Product or Licensed Service in the relevant country during the royalty-paying period in
which the Supply or use occurs.

6

 

	1.33	 	Notwithstanding the foregoing, the value or cost of Licensed Products used by the Licensee or
Supplied by the Licensee for no, or no additional monetary consideration for any of the
following purposes will not be included in the calculation or Net Sales, whether before or
after the commencement of the Commercial Licence:

	 	(a)	 	sales demonstrations and Customer Support, including demonstrating proof of
principle to prospective customers;
	 
	 	(b)	 	internal quality assurance or control;
	 
	 	(c)	 	research by the Licensee, any sub-contract researcher appointed by the Licensee
or any academic group collaborating with the Licensee into the development of Licensed
Products or Licensed Services, where that research is for the benefit of the Licensee
and not for the benefit of any other commercial Entity, or
	 
	 	(d)	 	equipment and process validation, commissioning and testing, including Supply
of Licensed Products for beta testing and use in clinical trials pursuant to clause
2.3;

provided the above activities are directed towards generating new sales or increasing
existing sales of Licensed Products or Licensed Services improving the quality of Licensed
Products or Licensed Services or developing new Licensed Products or Licensed Services.

	1.34	 	“Nucleic Acid Array” means an array of nucleic acids attached to a support including all
associated packaging, cartridge housing and all other elements or components of the product
containing the array of nucleic acids that form an integral part of that product and without
which the array of nucleic acids is not customarily Supplied.
	 
	1.35	 	“the Patent Term” means the period during which the Licensed Patent Rights subsist, ending on
the expiry of the last to expire of the patents in the Licensed Patent Rights. For clarity,
the date of expiry of the last to expire of the patents in Licensed Patent Rights as of the
Effective Date is May 2, 2009 which date may be extended upon inclusion of improvement Patents
in accordance with clause 4.3.
	 
	1.36	 	“the Research Licence” means the licence granted pursuant to clause 2.1.
	 
	1.37	 	“Suppl(y) (ied) (ying)” means sell, supply, lend, let out on hire, lease or any other
disposal, and in the case of services includes the provisions of access to information.
	 
	1.38	 	“the Term” means the term of this Agreement.
	 
	1.39	 	“Valid Claim” means a claim of an issued and subsisting patent in the Licensed Patent Rights
which claim has not been finally held to be invalid or unenforceable in a proceeding from
which no further appeal may be taken within the time limit for taking that appeal.

7

 

	1.40	 	In this Agreement:

	 	(a)	 	references to clauses are to the clauses of this Agreement;
	 
	 	(b)	 	references to the parties are to the parties to this Agreement;
	 
	 	(c)	 	headings are used for convenience only and do not affect its interpretation;
	 
	 	(d)	 	references to the masculine include the feminine; and
	 
	 	(e)	 	references to a statutory provision include references to the statutory
provision as modified or re-enacted or both from time to time and to any subordinate
legislation made under the statutory provision.

	2.	 	RESEARCH LICENCE
	 
	2.1	 	Licence Grant. OGT grants to the Licensee and the Licensee accepts a non-exclusive,
world-wide licence under the Licensed Patent Rights to manufacture, have manufactured, import,
offer to Supply, Supply (subject to clauses 2.2 and 2.3), and use Licensed Products and to
practice Licensed Processes in the Field and in each case solely for the purposes of carrying
out research, offering to Supply, testing and evaluation of, and obtaining regulatory approval
for, Licensed Products and Licensed Processes, with a view to eventual commercialisation.
	 
	2.2	 	Restrictions. Other than in accordance with clause 2.3 the Licensee may not prior to the
commencement of the Commercial Licence:

	 	(a)	 	Supply Licensed Products to third parties;
	 
	 	(b)	 	use Licensed Processes or Licensed Products in the provision of services to
third parties for value or in the creation of databases which are Supplied or licensed
to third parties for value;
	 
	 	(c)	 	transfer data derived from the use of Licensed Processes or Licensed Products
to third parties for any valuable consideration; or
	 
	 	(d)	 	use any Licensed Product or practice any Licensed Process for any commercial
purpose, including, without limitation, for medical pharmaceutical or biological
research for human or animal diagnostics or for forensic, identity, environmental or
food testing.

	2.3	 	Beta Testing and Clinical Trials. The Licensee may Supply Licensed Products to third parties
(a) for the purpose of beta testing of those Licensed Products and (b) for the purpose of
carrying out clinical trials using those Licensed Products as part of the process for
obtaining regulatory approval for those and similar Licensed Products, provided:

	 	(a)	 	in relation to Supplies made prior to the commencement of the Commercial
Licence, the Licensee does not receive, and is not entitled to receive, at any time,

8

 

	 	 	 	any monetary consideration for that Supply or use, other than payments of amounts to
cover the costs incurred by the Licensee relating to the manufacture, Supply and use
of the Licensed Products concerned, but in any event not exceeding $* per
trial or test or an aggregate amount for all trials and tests of $*; and

	 	(b)	 	the Licensee informs OGT in writing within 30 days after the Supply in question
that it has made the Supply giving details of the third party and the Licensed Products
Supplied and certifying to OGT in a form reasonably acceptable to OGT that it has not
received, and is not entitled to receive, any monetary consideration other than as
permitted in paragraph (a) above.

	2.4	 	Licensee Warranty and Representation. The Licensee warrants and represents to OGT that in
the period from 25 April 2000 until the Effective Date neither it nor any of its Affiliates,
with the exception of the past activities of the Motorola CodeLink business unit which was
divested by Motorola, Inc. in 2002, have between them received or become entitled to receive
payments which would be permitted under clause 2.3(a), or otherwise for the Supply of what
would be Licensed Products if made or Supplied under this Agreement,
which exceed $* in
aggregate.

	2.5	 	Past activities. OGT and OGT Limited on behalf of themselves and their Affiliates
(“Releasors”) hereby release the Licensee, Motorola, Inc. and their officers and employees
(“Releasees”) from any and all liability, claims, debts, rights, actions, suits, damages,
losses, costs, expenses and demands whatsoever, in law or equity, of every kind, nature or
description, whether known or unknown, fixed or contingent, which Releasors now have or ever
had against Releases (“Liability”) arising (a) from activities carried out before the
Effective Date by Releasees relating to the development, manufacture, marketing and sale of
the eSensor Generation 1 Products and CodeLink products, and, in addition, (b) from any
Liability for, or arising out of, any possible infringement, direct or indirect, or any of the
Licensed Patent Rights (excluding any Improvement Patent included after the Effective Date)
resulting from any other research and development activities of Releasees prior to the
Effective Date which did not involve the commercial Supply or products or services Supplied by
Releases to which the release applies. OGT and OGT Limited represent that as of the Effective
Date they are not aware of any commercial activities of Releases that would give rise to any
such Liability towards OGT, OGT Limited or any of their Affiliates, other than activities
relating to the development, manufacture, marketing and sale of the eSensor and CodeLink
products, which Liability is released above.

	3.	 	COMMERCIAL LICENCE

	3.1	 	Election to take Commercial Licence. At any time during the term of the Research Licence the
Licensee may give written notice to OGT that it wishes to expand the scope of the licences
granted under this Agreement to include the rights set out in clause 3.2 with effect from the
First Sale Date. The Licensee will use all reasonable endeavors to give such notice to OGT no
less than 30 days prior to the proposed First Sale Date, and

9

 

	 	 	will in any event give such notice to OGT within 7 days after the actual First Sale Date,
specifying in that notice the date of the First Sale Date.

	3.2	 	Commercial Licence. On receipt of a notice pursuant to clause 3.1 the licence granted under
clause 2 will be expanded, without any further payment of License Maintenance Fees, to include
the following licence rights with effect from the First Sale Date: a non-exclusive,
royalty-bearing world-wide licence under the Licensed Patent Rights to manufacture, have
manufactured, use, Supply, Import and offer for Supply Licensed Products and Licensed
Services, and practice License Processes, in the Field. The licence includes the right for
the Licensee to license End-Users to use Licensed Products Supplied by the Licensee in the
field, and to practice Licensed Processes in the use of Licensed Products Supplied by the
Licensee in the field.

	3.3	 	Supply Chain. Under the Commercial Licence the Licensee may Supply Licensed Products and
Licensed Services to End-Users through its normal sales channels, including agents and
distributors. In addition the Licensee may Supply Licensed Products on an original equipment
manufacturer (“OEM”) basis, that is it may permit Licensed Products Supplied by it to be
re-Supplied under a brand name or trade mark not owned by the Licensee or an Affiliate
(whether on its own or together with a brand name or trade mark owned by the Licensee), and it
may permit Licensed Products containing biological materials specified, designed or supplied
by a third party to be re-Supplied by such third party supplier of biological materials.

	3.4	 	Exercise of have made rights. Where the Licensee has a Licensed Product manufactured by a
third party pursuant to the “have made” rights granted in clause 3.2, neither the manufacturer
nor any Affiliate of the manufacturer may Supply or be in any way involved or interested in
the Supply of the Licensed Product to any third party other than the mere delivery of the
Licensed Product to End-Users or distributors on behalf of the Licensee, unless it is pursuant
to a separate agreement entered into between Licensee and the manufacturer or the Affiliate of
the manufacturer involved in such Supply.

	4.	 	TERMS APPLICABLE TO RESEARCH LICENCE AND COMMERCIAL LICENCE

	4.1	 	End-User Restrictions. The Licensee may not expressly or impliedly license End-Users:

	 	(a)	 	to manufacture Licensed Products for any third party or for such End-Users own
use; or
	 
	 	(b)	 	to use Licensed Products or Licensed Processes to make, have made, use, Supply,
create or contribute to the creation of Expression Database Products and the Licensee
must expressly exclude such rights in its contracts with End-Users but solely to the
extent for generating gene expression data (and must procure that any distributors of
such Licensed Products do likewise), and must also attach appropriate labels to such
Licensed Products or include information with such Licensed Products expressly
excluding those rights, the wording of which must be approved by OGT before use, said
approval not to be unreasonably withheld.

10

 

	4.2	 	New Patent Grants. OGT agrees to notify the Licensee on or about 30 January in each year of
the term of any patents, the notice to include the date the patents expire, in the Licensed
Patent Rights which have issued or been granted in preceding calendar year. Any failure so to
notify the Licensee will have no effect on the rights granted under this Agreement.

	4.3	 	Improvement Patents. OGT must give written notice to the Licensee of any Improvement Patent
that is granted to it or any of its Affiliates or comes into their ownership or which they
obtain the right to sub-license during the Term. OGT will endeavour to give such notice
within 3 months after such grant or of the obtaining of such ownership or right. The Licensee
will have a period of 3 months after receipt of such notice to notify OGT in writing if
Licensee elects to include within the definition of Licensed Patent Rights any Improvement
Patent referred to in OGT’s notice. On receipt of such notice by OGT the Improvement Patent
will be deemed to be included in the definition of Licensed Patent Rights with effect from the
date of its grant or on which OGT or any of its Affiliates obtained ownership or sub-licensing
rights of it, but the licence granted to the Licensee in respect of the Improvement Patent
will be limited to those activities that fall within the claims of the granted patents in the
Licensed Patent Rights subsisting on the Effective Date or which derived from applications in
the Licensed Patent Rights subsisting on the Effective Date. If the Licensee has not given
OGT notice within the said period of 3 months to include an Improvement Patent within the
definition of Licensed Patent Rights neither OGT nor or any of its Affiliates may subsequently
grant a licence of that Improvement Patent to a third party on terms that would preclude any
of them from granting a licence of the Improvement Patent to the Licensee of its or its
Affiliate’s intention to do so and the Licensee has subsequently either informed OGT that it
does not wish to take a licence of that Improvement Patent or has failed to notify OGT in
writing within 14 days after the receipt of OGT’s notice that it wishes to take a licence of
any such Improvement Patent will be deemed to be included in the definition of Licensed Patent
Rights with effect from the date of its grant or the date on which OGT or its Affiliate
obtained ownership or sub-licensing rights of it, but the licence granted to the Licensee in
respect of the Improvement Patent will be limited to those activities that fall within the
claims of the granted patents in the Licensed Patent Rights subsisting on the Effective Date
or which derive from applications in the Licensed Patent Rights subsisting on the Effective
Date.

	4.4	 	No Implied Licences. No implied right or licence is granted to the Licensee under the
Licensed Patent Rights, including any right to grant sub-licences, except as expressly
included within the scope of the licences granted under Clauses 2, 3 and 4. The Licensee
agrees not to practise any Licensed Process, manufacture any Licensed Product or Supply any
Licensed Product Licensed Service other than as allowed under this Agreement.

	5.	 	LICENSEE’S OBLIGATIONS AND MUTUAL INDEMNITIES

	5.1	 	Labelling. In addition to the requirements under clause 4.1, the Licensee must attach a
label on each Licensed Product and/or include a statement in associated documentation supplied
by it, in a form and manner previously approved by OGT, said approval not to be unreasonably
withheld, stating the patent numbers of issued patents covering that

11

 

	 	 	Licensed Product, and must modify that label periodically at OGT’s reasonable request taking
into account the burden of making changes to inventories of Licensed Products.

	5.2	 	Indemnity. The Licensee agrees to indemnify and hold OGT and its Affiliates harmless from
and against all losses, liabilities, damages and expenses (including legal fees and costs)
suffered or incurred in connection with any claims, demands, actions or other proceedings made
or brought by any third party, including any Affiliate of the Licensee, arising from: (a) any
and all uses or Supplies of Licensed Products or Licensed Services by the Licensee or its
Affiliates or End-Users, (b) any manufacturing defect in any Licensed Products manufactured by
or on behalf of the Licensee, or (c) any other act or omission of the Licensee in connection
with the making, having made, use or Supply of Licensed Products or Licensed Services, except
to the extent that any of those losses, liabilities, damages or expenses resulted from the
negligence or intentional misconduct of OGT or any of its Affiliates. OGT agrees to indemnify
and hold Licensee and Affiliates harmless from and against any and all claims made or brought
against any of them by any third party to the extent that they are based on any negligence or
intentional misconduct of OGT or any of its Affiliates.

	5.3	 	Insurance. If there is any change in the Entity having Control of the Licensee, or if the
identity of the Licensee changes as result of an assignment of the benefit of this Agreement,
and Controlling Entity or the new Licensee (as the case may be) had annual world-wide sales
less than $100 million the Licensee must as soon as practicable after such change or
assignment take out and maintain adequate product liability and other insurance reasonably
required by OGT or by any applicable law in respect of its activities under his Agreement.
The Licensee must at OGT’s request from time to time provide OGT with reasonable evidence to
demonstrate that the Licensee has fulfilled its obligations under this clause.

	5.4	 	Meetings. Up to twice in each calendar year during the Term, or as the parties mutually
agree, the parties will endeavour to, at the reasonable request of any party, meet with
representatives of the other parties at a mutually convenient time and place to review matters
relating to this Agreement. Each party must bear its own costs incurred in attending these
meetings.

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	6.	 	FINANCIAL PROVISIONS

	6.1	 	Licence Maintenance Fee. Within 15 days after the Effective Date the Licensee must pay to
OGT the first Licence Maintenance Fee in respect of the period of the Research Licence from 25
April 2000 until 31 December 2004. The Licensee must pay additional Licence Mantenance Fees
within 15 days after 1 January 2005 and of each anniversary thereof until the First Sale Date.
If the First Sale Date occurs at any time other than 31 December in any year and the Research
License is expanded to include the Commercial Licence, the last Licence Maintenance Fee paid
prior to the First Sale Date will be apportioned on a daily basis and the portion representing
the part of the calendar year remaining after the First Sale Date will be deductible from the
Initial Licence Fee.

	6.2	 	Initial Licence Fee. Within 15 days after the First Sale Date the Licensee must pay to OGT
the Initial Licence Fee less any amount deductible pursuant to clause 6.1.

	6.3	 	Milestone Payments. Prior to May 2, 2009, the Licensee must pay to OGT the Milestone
Payments, if any, in accordance with the provisions of Schedule 1 and Schedule 3 (as
applicable).

	6.4	 	Additional Licence Fees. After May 2, 2009, the Licensee must pay to OGT the Additional
Licence Fees, if any, in accordance with the provisions of Schedule 2 and Schedule 4 (as
applicable).

	6.5	 	Royalties. For the Supply of Licensed Products and Licensed Services from and including the
First Sale Date until the end of the Patent Term, the Licensee must in addition pay to OGT
royalties amounting to the percentages of Net Sales of Licensed Products and Licensed Services
specified in Part A of this Agreement, subject to the provisions of clauses 6.6, 6.7 and 6.8.

	6.6	 	Credit and Reductions. The Milestone Payments and Additional Licence Fees may be credited
against royalties, and Additional Licence Fees may be reduced in accordance with the
provisions of Schedule 3 and Schedule 4, but not otherwise.

	6.7	 	Royalty Stacking. The royalties payable under clause 6.5 will be reduced by the amounts, if
any, that the Licensee is obliged to pay by way of royalties (including amounts representing
the depreciated cost of paid-up royalties) on net sales of Licensed Products and/or Licensed
Services pursuant to any existing or future licence granted to the Licensee by any third party
provided that:

	 	(a)	 	the third party licence is reasonably necessary for the Licensee to avoid
infringing one or more patents owned or controlled by the third party;
	 
	 	(b)	 	the Licensee provides OGT with documentary evidence of the third party licence
and the amounts payable under it (if necessary redacted so as not to reveal the third
party’s identity);

13

 

	 	(c)	 	in no event will the royalty payable by the Licensee in respect of any Licensed
Product or Licensed Service in any royalty period be reduced to less
than *% of Net
Sales of that Licensed Product or Licensed Service; and
	 
	 	(d)	 	the royalty reduction will only apply to the particular product lines or
service offerings in respect of which the third party licence is reasonably necessary.

OGT acknowledges that Licensee has provided OGT access to documentary evidence in accordance
with clause 6.7 of its existing licenses from third parties and OGT agrees that the
requirements of this claques 6.7 have been met in their entirety and the royalties payable
under clause 6.5 are reduced to *% of Net Sales.

	6.8	 	Combination Products. The provisions of Schedule 5 will apply to calculate Net Sales in
respect of Licenses Products Supplied in combination with products that are not Licensed
Products where the Licensed Product is not separately valued on the relevant invoice of other
document evidencing the Supply.

	6.9	 	Payment of Royalties. Royalties due under this Agreement must be paid within 30 days after
the end of each Calendar Quarter in respect of royalties that have accrued during that
Calendar Quarter pursuant to the provisions of Clause 6.5, and within 30 days after the end of
the Patent Term.

	6.10	 	Payment Terms. All sums due under this Agreement:

	 	(a)	 	are exclusive of Value Added Tax or other sales taxes which where applicable
must also be paid by the Licensee to OGT;
	 
	 	(b)	 	must be paid in US Dollars by bank telegraphic transfer to the credit of a bank
account nominate by OGT. In the case of Net Sales invoiced by the Licensee in a
currency other than US Dollars, these will be converted consistent with practices used
in the Licensees’ ordinary course of business using generally accepted accounting
principles;
	 
	 	(c)	 	must be made without deduction of income tax or other taxes, charges or duties
that may be imposed, except and so far as the Licensee is required to make those
deductions to comply with applicable laws, in which case the Licensee must reasonably
cooperate with OGT in all respects necessary to allow OGT to take advantage of any
double taxation agreements that may be available;
	 
	 	(d)	 	must be made by the due date, failing which OGT may charge interest on any
outstanding amount on a daily basis at a rate equivalent to * (but
in no event exceeding * per annum above) the prevailing Prime Rate as published in the
Wall Street Journal.

	6.11	 	Prohibition on Payment. If, at any time after there has occurred a change in the Entity
having control of the Licensee, or after the identity of the Licensee has changed as a result
of an assignment of the benefit of this Agreement, the new Licensee is neither a US

14

 

	 	 	corporation nor Controlled by a US corporation, and the Licensee is prohibited from making
any payment required under this Agreement by a governmental authority in any country, then
the Licensee must with the prescribed period for making that payment use its reasonable
endeavours to secure from the proper authority in the relevant country permission to make
that payment and must make it within 7 days after receiving that permission. If the
permission is not received within 30 days after the Licensee’s request then, at OGT’s
option, the Licensee must either deposit the total amount due in US Dollars (or if
conversion to US Dollars is either prohibited or not possible an amount in local currency of
the relevant country equal to *% of the local currency equivalent of that US Dollar
amount) in a bank account designated by OGT within that country or pay an Affiliate of OGT
designated by OGT which has offices in that country. If when the prohibition on payment is
lifted or conversion to US Dollars becomes possible the amount of local currency is
insufficient to purchase the amount originally due in US Dollars then the Licensee must
immediately make up the shortfall. If after conversion to US dollars of any amount of local
currency deposited by the Licensee under this clause the US dollar amount exceeds the amount
due to OGT, OGT will repay the excess to the Licensee.

	6.12	 	Reports. Within 30 days after the end of each Calendar Quarter during the Term and within 30
days after the end of the Term, the Licensee must send to OGT a report in a form reasonably
stipulated by OGT from time to time. Attached hereto as Schedule 7 and incorporated herein by
reference is a report form currently acceptable to OGT. The report must be certified by the
Licensee’s chief financial officer or other individual reasonably acceptable to OGT as being
complete, true and accurate. The Licensee must send this report whether or not any royalties
are due for the period of the report.

	6.13	 	Records and Audit. The Licensee must keep for a minimum period of 2 years from the time of
creation at its normal place of business, detailed and up-to-date records and accounts showing
the quantity, description and value of Licensed Products and Licensed Services Supplied by it
which are the subject of royalties under Clause 6.5, on a country by country basis, and being
sufficient to ascertain the royalties due under this Agreement. OGT has the right, on giving
reasonable notice, to undertake a review and audit of these records and accounts, not more
than once in any 12-month period during the Term and for a period of 2 years after the end of
the Term, during local business hours by one or more independent chartered or certified
accountants appointed by OGT (assisted by non-qualified staff if required), for the purpose of
verifying the accuracy of any statement or report given by the Licensee to OGT under this
Agreement. The accountant and staff will be required to keep confidential all information
learnt during any review and audit, any only to disclose to OGT any details necessary to
report on the accuracy of the Licensee’s statement or report. OGT will be responsible for the
accountant’s charges unless the accountant is satisfied, and Licensee reasonably agrees, that
there is an underpayment of more than five per cent (5%) in the period audited, in which case
the Licensee must pay the accountant’s reasonable charges for the review and audit.

15

 

	7.	 	PATENT INFRINGEMENT AND ENFORCEMENT

	7.1	 	Notification of Infringements. The Licensee may at its discretion notify OGT in writing
using the procedures set forth in Clause 11.5 of any infringement or possible infringement of
any granted patent in the Licensed Patent Rights of which Licensee becomes aware or which
Licensee suspects (hereafter “Licensee Identified Infringements”). For Licensee Identified
Infringements only, Licensee must if requested by OGT provide OGT or any of its Affiliates
with reasonable assistance in any action OGT or any of its Affiliates may take against any
person involved with Licensee Identified Infringements, including by disclosing to OGT or any
of its Affiliates any relevant information in its possession relating to the Licensee
Identified Infringements. In providing such assistance, Licensee will not be obligated under
this Agreement to make any external investigations of conduct any analyses. OGT agrees to
reimburse Licensee for *% of Licensee’s external legal costs and out-of-pocket expenses in
providing OGT or any of its Affiliates with reasonable assistance with respect to the
activities of any one infringer or suspected infringer, provided such expenditure has been
authorised in advance by OGT, but in no event shall Licensee be obligated to expend more than
US $* in such costs and expenses (exclusive of reimbursement by OGT). Any additional
costs and expenses shall be borne entirely by OGT but only to the extent that have been
authorised in advance by OGT. OGT agrees that Licensee shall be entitled to reimbursement
from OGT of the remaining *% of Licensee’s external legal costs and out-of-pocket expenses to
the extent that such amounts are recovered by OGT or any of its Affiliates by way of damages,
by settlement or otherwise in any action OGT or any of its Affiliates may take in relation to
a Licensee Identified Infringement for which Licensee has provided assistance to OGT or any of
its Affiliates.

	7.2	 	Actions against Infringers. Neither OGT nor any of its Affiliates will be under any
obligation by virtue of this Agreement to take any action whether through the institution or
legal proceedings or otherwise with respect to any infringement or suspected infringement of
the Licensed Patent Rights but, if OGT or any of its Affiliates in their absolute discretion
decide to take any such action, then without prejudice to any separate agreement that the
parties may enter into, or have entered into, they must do so at their own cost and the
Licensee will have no claim to any sums received by OGT or any of its Affiliates, except as
provided in Clause 7.1 If the Licensee notifies OGT of any activities of any third party that
it reasonably believes constitute an infringement of the Licensed Patent Rights that is of
competitive concern to the Licensee, OGT will consider any information disclosed by the
Licensee in good faith and if requested by the Licensee will meet with the Licensee and
discuss in good faith any reasonable proposals put forward by the Licensee for dealing with
the alleged infringement concerned.

	8.	 	CONFIDENTIALITY

	8.1	 	Confidentiality Undertakings. Each Party (“Receiving Party”) undertakes:

	 	(a)	 	to keep Confidential Information secret and confidential and to respect the
other party’s (“Disclosing Party”) rights in it;

16

 

	 	(b)	 	to use Confidential Information exclusively for the purposes of this Agreement;
and
	 
	 	(c)	 	to disclose Confidential Information only to those of its employees,
contractors, consultants and End-Users pursuant to this Agreement (if any) to whom and
to the extent that such a disclosure is reasonably necessary for the purposes of this
Agreement and related agreements between the parties or their Affiliates and then only
subject to written terms of confidentiality in favour of the Receiving Party.

	8.2	 	Exceptions. The provisions of Clause 8.1 will not apply to Confidential Information that the
Receiving Party can demonstrate by reasonable, written evidence:

	 	(a)	 	was, prior to the receipt by the Receiving Party from the Disclosing Party, in
the possession of the Receiving Party without any obligation of confidence; or
	 
	 	(b)	 	is subsequently disclosed to the Receiving Party without any obligations of
confidence by a third party who has not derived it directly or indirectly from the
Disclosing Party; or
	 
	 	(c)	 	is or becomes generally available to the public through no act or default of
the Receiving Party or its agents, employees, Affiliates or licensees; or
	 
	 	(d)	 	is independently developed by the Receiving Party without the aid, application
or use or Confidential Information of the Disclosing Party, as can be demonstrated by
written records created at the time of that independent development.

	8.3	 	Legal Obligation to Disclose. The Receiving Party may disclose Confidential Information to
the extent that it is required to disclose it by or to the courts of any competent
jurisdiction, or to any government, regulatory agency or financial authority, provided that
the Receiving Party must:

	 	(a)	 	inform the Disclosing Party as soon as is reasonably practicable; and
	 
	 	(b)	 	at the Disclosing Party’s request seek to persuade the court, agency or
authority to have the Confidential Information treated in a confidential manner, where
this is possible under the court, agency or authority’s procedure.

	8.4	 	Extension to Employees, etc. The Receiving Party must procure that all of its employees,
contractors and sublicensees and End-Users pursuant to this Agreement (if any) who could have
access to any Confidential Information to which Clause 8.1 applies must be made aware of and
subject to these obligations.

	9.	 	WARRANTIES AND WARRANTY DISCLAIMERS

	9.1	 	Warranty of Authority. Each party warrants to the others that it has the full right and
power to enter into this Agreement. OGT further warrants that it is entitled to license the
Licensed Patent Rights in accordance with the provisions of this Agreement.

17

 

	9.2	 	OGT and OGT Limited Warranties and Representations. OGT and OGT Limited warrant and
represent to Licensee that:

	 	(a)	 	OGT or its Affiliates are the sole and exclusive owner of the Licensed Patent
Rights, including, without limitation, the patents and patent applications specified in
Part A, free of any liens or encumbrances;
	 
	 	(b)	 	OGT and OGT Limited have the right and power to enter into this Agreement and
to grant the rights granted pursuant to this Agreement;
	 
	 	(c)	 	to the best of the knowledge and belief of the directors of OGT at the
Effective Date, no patent which on the Effective Date is either owned by OGT or any of
its Affiliates or is licensed to OGT or any of its Affiliates with the right to
sublicense, and which is not included in the Licensed Patent Rights, would be infringed
by the manufacture, having manufactured, Supply, offer for Supply, importation or use
of the eSensor Generation 1 Products;
	 
	 	(d)	 	as of the Effective Date no patent included in the Licensed Patent Rights has
been revoked or held to be invalid by any court of competent jurisdiction or patent
office;
	 
	 	(e)	 	as at the Effective Date the directors of OGT are not aware, without having
made any special enquiry, of any prior art that would defeat novelty or inventiveness
of any of the granted patents in the Licensed Patent Rights (as they exist on the
Effective Date) that has not been disclosed to the relevant patent office, or of any
actions or omissions of OGT or any Affiliate of OGT which have resulted in any relevant
patent office being misled, or of any inequitable conduct in relation to any of the
Licensed Patent Rights (as they exist on the Effective Date) by OGT or any Affiliate of
OGT. The Licensee acknowledges that this warranty is not breached by virtue of the
fact that European Patent Number 0 373 203 was maintained by the Opposition Division in
amended form and not as granted; and
	 
	 	(f)	 	as at the Effective Date, without having made any special enquiry, the
directors of OGT are not aware that any Entity has a current intention of taking
proceedings against the Licensee for patent infringement in relation to the eSensor
Generation 1 Products.

	9.3	 	Non-reliance. The Licensee acknowledges that in entering into this Agreement, it does not do
so in reliance on any representation, warranty or other provision except as expressly provided
in this Agreement and any conditions, warranties or other terms implied by statute or common
law are excluded from this Agreement to the full extent permitted by law.

	9.4	 	Warranty Exclusions. Without limiting the scope of Clause 9.3 except as otherwise expressly
provided in this Agreement, neither OGT nor OGT Limited gives any warranty, representation or
undertaking:

18

 

	 	(a)	 	as to the efficacy or usefulness of the Licensed Patent Rights or any
Inventions claimed in them;
	 
	 	(b)	 	that any of the Licensed Patent Rights are or will be valid or subsisting or
(in the case of applications) will proceed to grant;
	 
	 	(c)	 	that the exploitation of any of the Licensed Patent Rights or the manufacture,
Supply or use of Licensed Products or Licensed Services or the exercise of any other
rights licensed under this Agreement, will not infringe any other intellectual property
or other rights of any other Entity; or
	 
	 	(d)	 	as imposing any obligation on OGT or any of its Affiliates to bring or
prosecute actions or proceedings against third parties for infringement or to defend
any actions or proceedings for revocation of any of the Licensed Patent Rights.

	9.5	 	EXCLUSION OF LIABILITY. IT IS UNDERSTOOD AND AGREED BETWEEN THE PARTIES THAT, EXCEPT AS
EXPRESSLY PROVIDED IN THIS AGREEMENT, ANY AND ALL RIGHTS LICENSED AND INFORMATION MADE
AVAILABLE BY OGT OR ANY OF ITS AFFILIATES TO THE LICENSEE ARE LICENSED OR MADE AVAILABLE “AS
IS”. NEITHER OGT NOR OGT LIMITED MAKES ANY REPRESENTATIONS OR WARRANTIES (OTHER THAN THE
REPRESENTATIONS AND WARRANTIES IN CLAUSE 9) OF ANY KIND, WHETHER EXPRESS OR IMPLIED, WITH
RESPECT TO SUCH RIGHTS OR INFORMATION, INCLUDING BUT NOT LIMITED TO ANY REPRESENTATION OR
WARRANTY CONCERNING THE PERFORMANCE OF ANY LICENSED PRODUCT OR LICENSED SERVICE. OGT AND OGT
LIMITED DISCLAIM ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF
QUALITY, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE.

	10.	 	DURATION AND TERMINATION

	10.1	 	Research Licence. The Research Licence will come into effect on the Effective Date and
unless terminated earlier in accordance with this clause or under the general law will
continue in force until the earlier of:

	 	(a)	 	the Licensee giving OGT written notice of termination no less than 3 months
prior to the intended termination date; or
	 
	 	(b)	 	the end of the Patent Term.

	10.2	 	Commercial Licence. The Commercial Licence will come into effect on the First Sale Date and
unless terminated earlier in accordance with this clause or under the general law will
continue in force until the end of the Patent Term.

	10.3	 	Termination by OGT. OGT may terminate this Agreement immediately by written notice if:

19

 

	 	(a)	 	the Licensee commits a material breach of this Agreement or any term of it
(other than by failing to make a payment by the due date) and the breach is not capable
of being remedied; or
	 
	 	(b)	 	the Licensee commits a material breach of this Agreement or any term of it
(other than by failing to make a payment by the due date) and the breach is capable of
being remedied, but the Licensee is not taking active steps to remedy it by the end of
the period of 60 days after receipt of written notice from OGT specifying the breach
and requiring its remedy (which steps it must describe in reasonable detail to OGT in a
written report made to OGT within that 60-day period), or, having taken those steps,
fails to remedy the breach by the end of the period of 120 days after receipt of that
notice; or
	 
	 	(c)	 	the Licensee fails to make any payment by the due date and subsequently fails
to make the payments concerned plus any applicable interest within 30 days after
receiving written notice from OGT requiring it to do so; or
	 
	 	(d)	 	an Insolvency Event occurs in relation to the Licensee; or
	 
	 	(e)	 	the Licensee or any Affiliate of the Licensee or any of their officers or
employees challenges or (except where required to do so pursuant to a court order or as
otherwise required by law) assists any other person to challenge the validity or
priority of any of the Licensed Patent Rights. In any dispute between the parties as
to whether or not any particular activity is Covered by a Valid Claim, any assertion
that the claim in question, assuming it to be valid, does not cover the activity will
not be treated as a challenge to the claim’s validity. However any assertion that the
activity is not so covered because the claim in question is invalid will be treated as
a challenge to its validity. For any new or existing patent application of OGT or any
of its Affiliates which if granted would be an Improvement Patent, and which claims a
priority date earlier than the priority date of a patent or application filed by the
Licensee, the Licensee may challenge the priority date of OGT’s or its Affiliates
application in the course of the prosecution of its own patent application or in the
context of an interference action between the two patent applications (or between OGT’s
or its Affiliate’s application and the Licensee’s patent) without falling within this
sub-clause. The Licensee may also, in the course of prosecuting any patent
application, challenge the citation of any patent or application in the Licensed Patent
Rights as prior art against it without falling within this sub-clause.

	10.4	 	Termination by the Licensee. The Licensee may terminate this Agreement immediately by
written notice if:

	 	(a)	 	OGT or OGT Limited commits a material breach of this Agreement or any term of
it and the breach is not capable of being remedied; or
	 
	 	(b)	 	OGT or OGT Limited commits a material breach of this Agreement or any term of
it and the breach is capable of being remedied, but OGT or OGT Limited, as

20

 

	 	 	 	applicable, is not taking active steps to remedy it by the end of the period of 60
days after receipt of written notice from the Licensee specifying the breach and
requiring its remedy (which steps it must describe in reasonable detail to the
Licensee in a written report made to the Licensee within that 60-day period), or,
having taken those steps, fails to remedy the breach by the end of the period of 120
days after receipt of that notice; or

	 	(c)	 	at any time during the Term or more claims of the patents in the Licensed
Patent Rights are declared invalid, unenforceable, are revoked or are significantly
narrowed in scope by a court of law or a parent office, in which case OGT shall provide
notice of such action to Licensee within 30 days, and as a result the Licensee no
longer manufactures or Supplies any Licensed Products or practises any Licensed
Processes in any part of the world; or
	 
	 	(d)	 	the Licensee has made payments by way of the Initial License Fee, Milestone
Payments and/or Additional Licence Fees which together total $5 million or more.

	10.5	 	Change of Control. If any Entity or group of Entities acting together, which does not have
Control of the Licensee at the Effective Date, acquires Control of the Licensees, or if any
Entity that has Control of the Licensee at the Effective Date loses Control of the Licensee,
the Licensee must promptly inform OGT in writing. Following such notice, and if requested by
OGT, Licensee will meet with OGT to discuss the future plans of the Licensee and any person
having Control of the Licensee with respect to the Licensee’s business and will discuss in
good faith any reasonable proposals regarding future actions under this Agreement put forward
by OGT.

	10.6	 	Effect of Termination. On termination of this Agreement for any reason:

	 	(a)	 	the Licensee will be entitled to Supply, use or otherwise dispose of (subject
to payment of royalties under Clause 6.5 if OGT terminates the Agreement under clause
10.3 or if Licensee terminates under clause 10.4(c)) any unsold or unused stocks of
Licensed Products for a period of three months following the date of termination;
	 
	 	(b)	 	subject to clause (a) above, the Licensee will, if requested by OGT, consent to
the cancellation of any formal licence granted to it, or of any registration of it in
any register, in relation to any of the Licensed Patent Rights;
	 
	 	(c)	 	the parties must cease to use any Confidential Information of the others and
must return to the Disclosing Party or, at the Disclosing Party’s option, destroy all
copies of the Disclosing Party’s Confidential Information in their possession or under
their control;
	 
	 	(d)	 	except as provided in this Clause 10.6, and except in respect of any accrued
rights, no party will be under any further obligation to any other under this
Agreement; and

21

 

	 	(e)	 	the provisions of Clauses 1, 2.5, 5.2, 6.11, 6.13, 8, 9, 10.6 and 11 will
survive termination of this Agreement indefinitely.

	11.	 	GENERAL

	11.1	 	Amendments. This Agreement may only be amended in writing signed by duly authorised
representatives of the parties.

	11.2	 	Assignment. OGT and OGT Limited may assign, mortgage, charge or otherwise transfer their
respective rights under this Agreement in whole or part to any third party. The Licensee may
not assign, mortgage, charge or otherwise transfer any rights or obligations under this
Agreement without the prior written consent of OGT, except that the Licensee may assign all
its rights under this Agreement to any party to which it transfers all or substantially all of
the CMS Business, provided that the assignee undertakes to OGT to be bound by and perform the
obligations of the Licensee under this Agreement.

	11.3	 	No Waiver. No failure or delay on the part of any party to exercise any right or remedy
under this Agreement will be construed or operate as a waiver thereof, nor will any single or
partial exercise of any right or remedy preclude the further exercise of such right or remedy.

	11.4	 	No Agency. Neither OGT nor OGT Limited, on the one hand, nor Licensee, on the other hand,
may act or describe itself as the agent of the other, nor may it make or represent that it has
authority to make any commitments on the other’s behalf.

	11.5	 	Notices. Any notice to be given under this Agreement must be given in writing and must be
sent by registered or certified post, postage prepaid or by air courier, to the address of the
relevant party, set out in Part A of this Agreement, or such other address as that party may
from time to time notify to the other parties in accordance with this clause 11.5. A notice
sent by facsimile will not be good notice under this Agreement. Notices sent as required
above will be deemed to have been received seven working days after the date sent.

	11.6	 	Further Assurance. Each party agrees to execute, acknowledge and deliver such further
instruments, and do all further similar acts, as may be necessary or appropriate to carry out
the purposes and intent of this Agreement.

	11.7	 	Announcements. No party may make any press or other public announcement concerning any
aspect of this Agreement, or make any use of the name of the other parties in connection with
or in consequence of this Agreement, without the prior written consent of the other parties,
except to the extent required by applicable laws or regulations, in which case the party
obligated to make the disclosure must use reasonable efforts to notify the other parties prior
to such disclosure.

	11.8	 	Entire Agreement. This Agreement sets out the entire agreement between the parties or their
Affiliates relating to its subject matter and supersedes all prior oral or written agreements,
arrangements or understandings between them relating to such subject

22

 

	 	 	matter. Save in the case of fraud, the parties acknowledge they are not relying on any
representation, agreement, term or condition which is not set out in this Agreement.
	 	 	 
	11.9	 	Severability. If any clause or part of any clause in this Agreement is declared invalid or
unenforceable by the judgment or decree by consent or otherwise of any court or authority of
competent jurisdiction from whose decision no appeal is or can be taken, all other clauses or
parts of clauses contained in this Agreement will remain in full force and effect and will not
be affected thereby for the term of this Agreement, but the parties will negotiate appropriate
amendments to this Agreement with a view to restoring the balance of commercial interests as
it stood prior to such invalidity or unenforceability being declared.
	 	 	 
	11.10	 	Law and Jurisdiction. This Agreement is made and will be construed in accordance with the
laws of England and Wales. Any legal action brought by OGT or OGT Limited against Licensee in
relating to this Agreement must be brought in the courts of the State or country of
incorporation of Licensee (unless it is a counterclaim to an action already brought by
Licensee against OGT or OGT Limited, in which case it may be brought in the court in which the
claim was brought), and any legal action brought by Licensee against OGT or OGT Limited in
relation to this Agreement must be brought in the courts of the State or country of
incorporation of OGT or OGT Limited, as appropriate, (unless it is a counterclaim to an action
already brought by OGT or OGT Limited against Licensee, in which case it may be brought in the
court in which the claim was brought), except that any party may seek an interim or emergency
injunction in any court of competent jurisdiction.

	11.11	 	Force Majeure. No failure omission by any party in the performance of any obligation
according to this Agreement, other than a payment obligation, shall be deemed a breach of this
Agreement or create any liability to the extent that the same shall arise from any cause or
causes beyond the control of such party, including, but not limited to: (A) acts of God, (b)
acts of a public enemy, (c) acts of civil or military authority, (d) hurricanes, (e)
earthquakes, (f) fires, (g) floods, (h) epidemics, (i) embargoes, (j) war, and (k) riots. The
party affected by force majeure shall promptly and timely notify the other parties of the
existence thereof, the expected delays, and the estimated effect upon its performance
hereunder, provided, that no such delay or failure in performance shall continue for
more than one hundred and twenty (120) days.

23

 

NOTE DESCRIBING THE PURPOSE OF SCHEDULES 1, 2, 3 AND 4

LICENCE FEE COMPONENTS OF THE AGREEMENT

Milestone Payments and Additional Licence Fees

	1.	 	The full licence fee for the licence granted to the Licensee
is $* and it is payable in
installments due if revenue milestones are met in accordance with the success of the CMS
Business.
	 
	2.	 	Prior to May 2, 2009 the instalments are termed Milestone Payments.
	 
	3.	 	Milestone Payments are triggered by the CMS Business achieving specific annual
revenue levels within a given calendar year.
	 
	4.	 	If the full $* has not been paid by May 2, 2009, Additional Licence Fees become due if the
CMS Business generates defined cumulative revenues commencing on the First Sale Date.
	 
	5.	 	In any event, if the CMS Business generates a cumulative
total of $*  in revenue a total of
$*  in licence fees will have become payable.
	 
	6.	 	A proportion of Milestone Payments can be credited against royalty obligations in accordance
with Schedule 3.
	 
	7.	 	Additional Licence Fees can be reduced in accordance with Schedule 4.
	 
	8.	 	Both the proportion of Milestone Payments that can be used as a credit against royalty and
the amount of reduction that can be applied to Additional Licence Fees are dependent on the
calendar year in which the Milestone Payments and Additional Licence fees (as the case may be)
become due.

	 	 	 
	Schedule 1 —

	 	defines the Milestone Payments (i.e. licence fees prior to May 2, 2009)
	Schedule 2 —

	 	defines the Additional Licence Fees (i.e. licence fees after May 2, 2009)
	Schedule 3 —

	 	defines the mechanism to be used in calculating the proportion of
Milestone Payments that can be used as credit against royalty
obligations
	Schedule 4 —

	 	defines the mechanism to be used when calculating any reductions
applicable against an Additional License Fee

24

 

SCHEDULE 1

Milestone Payments

	1.	 	Prior to May 2, 2009, if the CMS Annual Revenues in any calendar year after the First Sale
Date first reach the level(s) in Column 1 of Table S1 the relevant Milestone Payment(s) in
Column 2 will become payable.
	 
	 	 	(The level of CMS Annual Revenues will be assessed by the Licensee at the end of each
Calendar Quarter prior to May 2, 2009 and any Milestone Payment will be payable within 21
days after the end of the Calendar Quarter in which the relevant milestone is first
achieved.)
	 
	2.	 	In calendar year 2009 the CMS Annual Revenues from the beginning of that calendar year until
May 2, 2009 will be assessed and projected forward on a straight line basis for the whole
calendar year. If the projected CMS Annual Revenues for that calendar year reach an
applicable milestone not before reached the relevant Milestone Payment will be payable within
21 days following May 2, 2009.

			
	Table S1	 	The CMS Business annual revenue trigger points and associated Milestone Payments

	 	 	 	 	 
	 	 	COLUMN 1	 	COLUMN 2
	Milestone	 	CMS Annual Revenues	 	Milestone Payment
	*
	 	$*	 	$*
	*
	 	$*	 	$*
	*
	 	$*	 	$*
	*
	 	$*	 	$*
	*
	 	$*	 	$*

	3.	 	If at any time prior to May 2, 2009 the CMS Cumulative
Revenues reach $* (i.e. * US dollars), the balance of all Milestone Payments then remaining unpaid will
become payable within 21 days after the end of the calendar quarter in which that level is
achieved.

	4.	 	For the avoidance of doubt, no Milestone Payment will be payable more than once.

25

 

SCHEDULE 2

Additional Licence Fees

	1.	 	If by May 2, 2009 not all Milestone Payments have become payable then Additional Licence Fees
may become payable in accordance with this Schedule.

	2.	 	The total of the Additional Licence Fees, if any, that become due will be the equivalent of
the sum of any unpaid Milestone Payments.

	3.	 	The Additional Licence Fees, if any, that become due will be payable in two equal instalments
(the “First Additional Licence Fee” and the “Second Additional Licence Fee”) dependent on the
level of the CMS Cumulative Revenues achieved prior to May 2, 2009, as set out in column 1 of
Table S2.

	4.	 	The first Additional Licence Fee, if any, that becomes due will be payable in 21 days after
the end of the Calendar Quarter in which the CMS Cumulative Revenues reach the level in column
2 of Table S2.

	5.	 	The Second Additional Licence Fee, if any, that becomes due will be payable 21 days after the
end of the Calendar Quarter in which the CMS Cumulative Revenues reach $1 billion.

			
	Table S2	 	The trigger points for payment of the First Additional Licence Fee as determined by the
success of the CMS business prior to May 2, 2009

	 	 	 
	 	 	COLUMN 2
	COLUMN 1	 	CMS Cumulative Revenues
	CMS Cumulative Revenues	 	triggering the First Additional
	prior to May 2, 2009	 	Licence Fee
	Less than or equal to $*
	 	$*
	Greater than $400m but less than
$*
	 	$*
	Equal to or greater than $*
	 	$*

	6.	 	Additional Licence Fees will be subject to reductions in accordance with Part 2 of Schedule
4.

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SCHEDULE
3

The basis on which credits may become available from Milestone Payments

against royalty obligations

	Table S3 	 	 Formulae defining the percentage of any given milestone payment that can be used as a
royalty credit prior to May 2, 2009

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Percentage (%) of Milestone Payment that can be used as
	Milestone Payment	 	a royalty credit
	Year	 	2005	 	2006	 	2007	 	2008	 	2009
	1. $*
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	2. $*
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	3. $*
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	4. $*
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	5. $*
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 

	1.	 	A proportion of all Milestone Payments will be eligible to be treated as a prepayment of
royalties otherwise due, in accordance with this Schedule 3.

	2.	 	The amount of any Milestone Payment that can be treated as a prepayment of royalties can be
carried across into the subsequent year if not fully used up in the calendar year it becomes
due.

	3.	 	The amount of credit associated with a specific Milestone Payment is determined by the year
in which the Milestone Payment is met; the amount of credit will decrease the later a payment
becomes due (Table S3).

	4.	 	The precise amount of credit associated with the payment of any Milestone Payment can be
calculated using the data in Table S3.

Example

(All
amounts are rounded to the nearest $* in these examples)

Milestone 1 becomes due in 2006

Amount of
credit available against royalty is *% of $*, i.e. credit of $*.

27

 

If the
royalty obligation at the time Milestone 1 became due was $* a credit
of $* would be
applied and a royalty payment of $* would be payable (i.e. $* royalty obligation less than
$* credit).

If the
royalty obligation at the time Milestone 1 became due was $* a credit
of $* would be
available and a royalty payment of * would be payable with a credit
of $* being carried
forward (i.e. $* credit less the $* of royalty obligation).

Milestone 1 becomes due in 2007

Amount of
credit available against royalty is *% of $*, i.e. credit of $*.

In this
case if a royalty obligation at the time Milestone 1 became due was
$* a credit of $*
would be applied and a royalty payment of $* would be payable (i.e.
$* royalty obligation
less then $* credit).

In this
case if the royalty obligation at the time Milestone 1 became due was $* a credit of
$* would be available and a royalty payment of $* would be
payable (i.e. $* royalty
obligation less the $* credit).

28

 

SCHEDULE
4

The basis on which Additional Licence Fees may be reduced

			
	Table S4	 	 Formulae defining the percentage of any given Milestone Payment that can be used to
calculate reductions that can be applied to Additional Licence Fees

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Percentage (%) of Milestone Payment that can be used to
	Milestone Payment	 	calculate Additional Licence Fees reductions
	Year	 	2010	 	2011	 	2012	 	2013	 	2014
	1. $*
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	2. $*
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	3. $*
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	4. $*
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 
	5. $*
	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 	 	 	*	 

	1.	 	Additional Licence Fees may be reduced, in accordance with this Schedule 4.

	2.	 	The First and Second Additional Licence Fees will be equal in amount, i.e. each being half of
the total Additional Licence Fees, and each will be treated as comprising half of each of the
unpaid Milestone Payments.

	3.	 	The applicable reduction associated with a specific Additional Licence Fee is determined by
the year in which the Additional Licence Fee is paid; the earlier an Additional Licence Fee is
paid the greater the amount of reduction (Table S4).

	4.	 	The reduction applicable to an Additional Licence Fee will be equivalent to the sum of the
credit that would have been available if the Milestone Payments it comprises of were paid at
the time the Additional Licence Fee becomes due.

	5.	 	The precise amount of reduction associated with the payment of any Additional Licence Fee can
be calculated using the data in Table S4.

Example

Milestones 4 and 5 not met prior to May 2, 2009 and First Additional Licence Fee becomes due in
2010 and Second Additional Licence Fee becomes due in 2012.

Total Additional Licence Fee equals the sum of unpaid Milestone Payments; in this example Milestone
4 ($*) plus Milestone 5 ($* M) which equals $*.

29

 

First
Additional Licence Fee is * of the total Additional Licence Fee; therefore in this
case First Additional Licence Fee = $*.

The First
Additional Licence Fee comprises * of Milestone Payment 4 and * of Milestone
Payment 5. In 2010 Milestone 4 has *% available as a credit and
Milestone 5 has *% available
(see Table S4).

Therefore
reduction of the First Additional Licence Fee in this example is equivalent to *% of
* of Milestone 4 (*% x * x $*) plus *% of * of Milestone 5 (*% x *x $*)
which equals $*.

This level
of reduction will result in a payment of $*, i.e. $* minus $*.

Second
Additional Licence Fee equals the First Additional Licence Fee, i.e. $*
comprising * of both Milestones 4 and 5.

In 2012
Milestone 4 has *% available as a credit and Milestone 5 has *% available (see Table S4).

Therefore
reduction of the Second Additional Licence Fee in this example is equivalent to *% of
* of Milestone 4 (*% x * x $*) plus *% of * of Milestone 5 (*% x * x $*)
which equals $*.

This level
 of reduction will result in a payment of $*, i.e. $* minus $*.

30

 

SCHEDULE 5

Combination Products

Where a Licensed Product is Supplied in combination with one or more products that are not Licensed
Products (“a Combination Product”) and the Licensed Product is not separately valued on the
relevant invoice or other document evidencing the Supply, the parties will follow the principles
and procedures set out in this Schedule 5 to determine the proportion of the Net Sales of the
Combination Product that represents Net Sales of the Licensed Product for the purpose of
calculating royalties payable under this Agreement (“the Royalty Base”).

In respect to the eSensor Generation 1.0 Combination Product, the
Royalty Base is *% of eSensor
Generation 1.0 Assay Kit revenues (see Schedule 6 for product description). The Licensed Product
components of the eSensor Generation 1.0 Assay Kit are a subset of the Labelling/Detection
Components and include: the cartridge containing printed circuit board material, gold electrodes
and connectors, DNA capture probes and the plastic housing and cap.
These components represent *%
of the total eSensor Generation 1.0 Assay Kit price (see table
below). Thus, given the *% royalty
rate pursuant to clause 6.7 of this Agreement (after royalty stacking adjustments) and given that
the proportion of the Net Sales of the Combination Product that represents Net Sales of the
Licensed Product is *% as outlined here, the effective royalty rate on eSensor Generation 1.0
Assay Kit revenues is *% (see table below).

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	COMPLETE GENERATION 1.0 ASSAY KIT
	Consumable Pricing
	 	 	(%)		 	 	*	%	 	 	*	%	 	 	*	%
	 
	 	 	($)		 	$	*	 	 	$	*	 	 	$	*	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	LABELING/DETECTION COMPONENTS
	 	 	Signaling Probe Cocktail	 	Chip/Cartridge/Cap
	Sub-kit Pricing
	 	 	(%)		 	 	*	%	 	 	*	%
	 
	 	 	($)		 	$	*	 	 	$	*	 
	Kit Royalty Base
	 	 	(%)		 	 	 	 	 	 	*	%
	 
	 	 	($)		 	 	 	 	 	$	*	 
	Licenced Product Royalty
	 	 	(%)		 	 	 	 	 	 	*	%
	 
	 	 	($)		 	 	 	 	 	$	*	 

Based on $* total kit price assumption

Given *% royalty rate pursuant to Paragraph 6.7

In respect of other Combination Products the Royalty Base will be determined in accordance with the
following principles:

	1.	 	If all material parts of the Combination Product are also Supplied as separate products then
the proportion that the list price attributable to the Licensed Product bears to the total of
the list prices of all of the products that make up the Combination Product will be the
Royalty Base.

31

 

	2.	 	If the Licensed Product component of the Combination Product is available as a separate
product, but some other element of the Combination Product are not sold separately, then the
list price of the Licensed Product component (less any discount applied to the whole
Combination Product price) will be the Royalty Base.

	3.	 	If neither of the above applies then if there is a list price for an equivalent Licensed
Product that has been sold within 6 months of the date of the first sale of the Combination
Product that list price will be the Royalty Base.

	4.	 	If the Licensee plans to introduce a new Combination Product of which there is no equivalent
recent past or current Licensed Product then it will notify OGT in writing of that plan as
long before the launch of the new product as is reasonably possible, and in any event no less
than 30 days before the launch, and the parties will negotiate in good faith to seek to agree
on the Royalty Base. The Licensee will provide OGT with all information about the new
Combination Product that OGT reasonably requires in order to come to an informed agreement
over the Royalty Base, applying similar, price-based considerations to those applied in
respect of the eSensor Generation 1.0 Combination Product above. During the course of those
negotiations either OGT or Licensee party may at any time require that the negotiations are
referred to and continued between the Chief Executive Officers or other senior executives of
the parties or are assisted by a mediator, or both. If at the end of the period of 90 days
after the initial notification by the Licensee the parties have not reached agreement on the
Royalty Base either OGT or Licensee may notify the other that it wishes to submit the matter
to administered expertise proceedings in accordance with the Rules for Expertise of the
International Chamber of Commerce (“ICC”). The parties shall then ask the ICC to propose
experts with relevant industry experience (including in clinical diagnostics and in government
and private reimbursement schemes) and if they cannot agree on the choice of an expert within
a period of 14 days after receipt of proposals from the ICC they will ask the ICC to appoint
one. The expert’s decision will be binding on the parties.

The parties agree that during the period of time that they are determining the Royalty Base of a
Combination Product, the Licensee will continue to pay royalties based on the Royalty Base of
existing Combination Products. Once a Royalty Base is determined in accordance with the above
process, then all royalties previously paid by the Licensee to OGT will be adjusted accordingly and
either the Licensee shall make a payment to OGT for any underpayment of royalties or OGT shall make
a payment to the Licensee for any overpayment of royalties.

32

 

SCHEDULE 6

eSensor Generation 1 Products

The eSensor Generation 1 series of products will each consist of a Reader and an Assay Kit as
described herein. The Assay is performed as also described herein.

Reader

The Generation 1 Reader is an instrument for performing hybridization and interrogation of multiple
cartridges simultaneously, each in a separate compartment. The instrument is controlled by a
central processing unit (CPU) which may be an off-the-shelf personal computer (Windows-based) or an
internal, embedded computer. The CPU and associated electronic circuitry monitor and control the
temperature of each compartment. The CPU and associated electronic circuitry also perform
electrochemical analysis of each DNA electrode in the cartridges.

Electrochemical analysis is performed using multiple potentiostat circuits, each of which analyzes
a cartridge in one compartment at a time. The circuit measures the potential of the fluid in the
cartridge using a reference electrode in the cartridge. It applies a voltage to the auxiliary
electrode in the cartridge to achieve a desired voltage in the fluid. The desired voltage is a
time variable waveform which is programmable, usually an alternating-current (ac) voltage added to
a dc ramp. The current which flows from the auxiliary electrode to each DNA electrode (working
electrode) in response to the applied voltage is measured by the circuitry as a function of time.
The current is amplified and fed into a high speed, high precision analog to digital (A/D)
converter. The digital information is stored in memory, as is the time for each data point. Each
DNA electrode is analyzed sequentially in an identical manner.

Signal processing for the data set corresponding to each DNA electrode is performed by determining
the root-mean-square (RMS) current as a function of applied voltage to produce a standard ac
voltammogram for each electrode. In addition, the data set may be analyzed by calculating the RMS
current response for each DNA electrode at integer multiples of the fundamental frequency
(harmonics) of the applied ac voltage.

Waveform analysis is performed on the resultant waveform to characterize the DNA hybridization on
the DNA electrode.

Assay Kit

The Assay Kit includes multiple cartridges for analysis of multiple tissue samples (usually blood).
It also includes the necessary reagents for performance of the analysis.

Cartridge. Each cartridge consists of a printed circuit board (PCB) with an array of gold
electrodes on one face of the PCB. Each electrode is approximately 0.5 mm in diameter. Each
electrode is connected to a contact paid on one edge of the PCB via a thin interconnect strip of
metal. The exposed area of each electrode is defined by one or more layers of solder mask (a
photosensitive insulating layer). Each electrode is covered by the solder mask, except for a
circle in its center of approximately 0.25 mm diameter. The solder mask completely covers the

33

 

entire surface of the PCB except for the electrodes and the connector pads on one edge of the PCB.

The electrodes of each PCB “chip” are modified with a self-assembled-monolayer (SAM) containing
insulating molecules and DNA oligonucleotides (15-30 nucleotides in length). The insulating
molecules are thio-alkyl or disulfide-alkyl compounds which have appended triethylene-glycol
groups. The DNA oligonucleotides are modified (usually on the 3’ terminal nucleotide) with an
thio-alkyl group. The electrodes are modified by applying a small droplet of the two components in
an aqueous solution to each electrode using a non-contact automated spotter. Each electrode can be
modified with a different oligonucleotide sequence or multiple electrodes can be modified with the
same oligonucleotide.

The cartridge is formed by attaching the modified PCB to a plastic housing. The plastic housing
and a gasket define a fluid chamber over the electrode array. The plastic housing and gasket also
form an inlet port to the cartridge designed to accept a standard disposable pipet tip for filling.

The cartridges in an Assay Kit are enclosed in a metalized plastic pouch which is filled with
nitrogen gas.

Assay

An assay is performed using the reagents supplied in the Assay Kit plus any items not provided in
the kit. Typically, the DNA from the blood sample is extracted using the commercial extraction
kit. Some assays may be performed directly from whole blood. The genomic DNA is amplified,
typically using polymerase chain reaction (PCR). If multiple DNA sequences are to be analyzed, the
amplification is usually performed in a multiplex format.

If the amplification procedure produces double stranded product then it is rendered single stranded
by any of the several procedures. Typically, the DNA is digested with lambda exonuclease. In this
case, one of the amplification primers in phosphorylated to facilitate digestion of the extension
product of that primer. The DNA amplification is designed to produce target polynucleotides of
from about 75 nucleotides up to several thousand nucleotides in length.

A small volume of the single-stranded amplification product is mixed with a small volume of Assay
Buffer and the mixture is loaded into a cartridge for analysis. The cartridge is inserted into a
compartment of the Reader and the analysis is initiated on the Reader. The Assay Buffer contains
electrolytes, denaturing agents, surfactants, an alkyl thiol, and signal probes.

Signal probes are oligonucleotides of from about 12 to 25 nucleotides in length and are designed to
bind to a region in the target polynucleotide which is adjacent (in the 3’ direction) to a second
region of the target polynucleotide. The DNA on the electrode (capture probe) is designed to bind
to the second region of the target polynucleotide. Signal probes are modified with electrochemical
labels (ferrocene analogs) covalently attached to the sugar group.

After the cartridge is inserted in the Reader, the Reader raises the temperature of the compartment
to 35 to 45 degrees Celsius for a time sufficient for the target polynucleotide and

34

 

the capture and signal probes to hybridize to one another. Following this hybridization period,
the Reader analyzes each electrode in the cartridge.

Genotyping assays are conducted as described, using two different signal probes, one having the
expected wild-type sequence and the other having the expected mutation sequence. Each signal probe
has an electrochemical label with a distinct electrochemical potential which allows independent
recognition and quantitation.

The preceding description applies to a series of DNA detection platforms which will incorporate
improvements and variations but which are all embodied within that description. Following are
descriptions of two Generation 1 product platforms which are under development.

eSensor Generation 1.0 Product

The eSensor Generation 1.0 Product, named the eSensor 4800 DNA Detection System, is a Generation 1
product as described above with the distinctions described herein.

Reader

The Generation 1.0 Reader, called the eSensorTM 4800 Reader, incorporates 48 compartments for
separate cartridges. It is controlled by a Windows XP-based personal computer and also contains
embedded microprocessors for signal processing, thermal control, and electrochemical analysis. The
personal computer communicates with the Reader by serial communication. The cartridge compartments
are arranged in six columns of eight compartments. Each column can be independently controlled and
can, thus, be used for different assays.

The 4800 Reader contains eight independent potentiostats for electrochemical analysis so that all
cartridges in a single column can be analyzed at once. Alternating current voltammetry (ACV) is
performed by applying a linear dc ramp from -100 to +600 mV combined with an ac sine wave of
approximately 100 mV amplitude and approximately 100 Hz.

Signal processing for each DNA electrode is performed by the embedded microprocessors. The fourth
harmonic ac voltammogram is determined and downloaded to the personal computer for waveform
analysis.

Waveform analysis is performed by analyzing the ac voltammogram, searching for the expected shape
of the fourth harmonic waveform. For genotyping assays, each waveform is analyzed for the
existence of two fourth harmonic waveforms, overlapping but having different electrochemical
potentials.

Assay Kit

Reagents. The Generation 1.0 Assay Kit includes a mixture of PCR primers, two primers for
each amplicon. Taq polymerase is included in sufficient quantity to perform the number of assays
corresponding to the number of cartridges in the kit. Lambda exonuclease is included for
generation of single-straded DNA amplicon. Buffers for hybridization and analysis are included
which contain all necessary components, including ferrocene-labeled signal probes.

35

 

Cartridge. Each cartridge consists of a printed circuit board (PCB) with an array of 36
gold electrodes on one face of the PCB. The gold electrodes are formed by electroplating first tin
and then gold over copper. Electrodes, interconnects and edge contacts are all coated with
electroplated gold. The exposed area of each electrode is defined by two layers of solder mask.
Each electrode is covered by a first layer of solder mask, except for a circle in its center of
0.25 mm diameter. The second (top) solder mask layer has a larger circular hole (approximately 1
mm in diameter) around each DNA electrode. Each PCB also has a single reference electrode which is
gold, but coated with a Ag/AgCl paste. Each PCB also has a single auxiliary electrode which is a
gold electrode of approximately 1 mm diameter.

Each electrode is spotted with different capture probe, usually 20-25 nucleotides in length.
Typically, two electrodes are coated with each capture probe to provide duplicate analysis for
increased reliability of the assay. Two positive control electrodes are spotted with a capture
probe which will hybridize with a synthetic DNA oligonuclotide which is included in the assay
buffer. The assay buffer also contains a signal probe complementary to the synthetic
oligonuclotide. Two negative control electrodes are also included and spotted with capture probes
that have no significant complementarity to any signal probe or target polynucleotide.

The cartridge is formed by attaching the modified PCB to a plastic housing. The plastic housing
and a double sided adhesive gasket define a fluid chamber over the electrode array.

Assay

Blood samples are extracted using a commercial extraction kit (not supplied at present). The
genomic DNA is amplified by multiplex PCR. One of the two primers for each amplicon is
phosphorylated.

The PCR amplicon is rendered single stranded by incubation with the supplied lambda exonuclease.

A small volume of the single-stranded amplification product is mixed with a small volume of Assay
Buffer and the mixture is loaded into either one or two cartridges for analysis. The cartridges
are inserted into a compartment of the 4800 Reader and the analysis is initiated.

Signal probes in the Generation 1.0 are oligonuclotides of from 14 to 20 nucleotides in length.

eSensor Generation 1.1 Product

The eSensor Generation 1.1 product will be similar to the Generation 1.0 product with the following
improvements or modifications.

Reader

The Generation 1.1 Reader will be modular in construction and will accommodate from eight to 48
cartridges, expandable in columns of eight compartments. The Reader will use an embedded computer
and the electronics will be redesigned and use updated electronic components but will perform
similar functions to the 4800 Reader.

36

 

Each cartridge compartment will include actuators to allow mixing of fluid components within the
cartridge.

Assay Kit

Reagents. The Generation 1.1 Assay Kit will contain similar components to that of the
Generation 1.0 Assay Kit. Signal probes will be analogous to those used in Generation 1.0 except
that a new labeling chemistry will be employed to create signal probes which are less hydrophobic
than Generation 1.0 probes.

Cartridge. Each cartridge will consist of a printed circuit board (PCB) with an array of
75-100 gold electrodes on the PCB. A higher density edge connector configuration will be employed
to allow the higher number of electrodes.

The cartridges are designed to allow mixing of the fluid contained in the cartridge to facilitate
hybridization kinetics.

37

 

SCHEDULE 7

Royalty Reports

Royalty reports are required from the Licensee and each Affiliate for each Calendar Quarter during
the Term. Each report is to contain information that enables OGT to check the volume and the value
of each form of Net Sales interaction as expressly allowed by the Agreement.

Each report should contain the following sections

1. Royalty stacking information & combination product formulae

Royalty stacking

The Agreement has provisions for royalty stacking. All of the third party agreements that are to
be used in adjusting the royalty to be paid to OGT in the reporting period covered by a report
should be listed and the relevant stacking amount stated.

Example

	 	 	 
	Agreement 1

	 	Stacking allowed *%
	Agreement 2

	 	Stacking allowed *%
	Etc.
	 	 

In the event that a named agreement in a specific report has either been fully disclosed previously
to OGT in either an earlier royalty report or by an alternative form of notice then the agreement
should be referenced by use of an agreed name (or code). If an agreement is nominated in an
royalty report but has not previously been disclosed to OGT then a copy of the agreement (in as
full a form as possible and in any case in no less a redacted form than is sufficient for OGT to
fully understand the royalty liability to the third party) must be attached to the royalty report
as an appendix.

Combination product formulae

There is allowance in the Agreement for agreed combination product formulae to be applied where a
royalty bearing element in a complex product is identified and that royalty bearing product
represents a specific fraction of the total product value.

If combination product formulae are used in any royalty report to adjust the headline royalty
figure then the formulae must be specified in this section.

Example

	 	 	 
	Formula 1

	 	Adjustment for combination *%
	Formula 2

	 	Adjustment for combination *%
	Etc.
	 	 

38

 

In any event all such formulae must have been agreed by OGT before they can be applied to adjust
royalty payments.

2. Product sales information

This section will detail the activities relating to the Licensee’s (or its Affiliates) royalty
bearing transactions

All products and services referred to in the royalty report should be referenced by a product
number. Each royalty report should contain an appendix that references each product number to a
specific description of the product or service.

Royalty bearing activities of the Licensee and each Affiliate should be reported in separate
tables. If there are no sales or no Affiliates this should be stated.

For each company, i.e. Licensee or Affiliate, the following tables should be presented.

Table 1

Units of product sold in each separate country where sales have occurred.

Table 2

For each country and product combination where relevant sales have occurred — the average selling
price of each product and the total Net Sales revenue associated with each product.

Table 3

Calculation of the royalty due to OGT using the headline licence rate
of *% for each country and
product combination.

Table 4

Adjustment of royalty due to OGT through application of royalty stacking and/or combination product
formulae. This table should clearly identify the royalty-stacking agreements and combination
formulae used in calculating any adjustments to the headline royalty obligation. It should be
clearly noted which third party stacking adjustment (or combination formula) is associated with
each product, and if there are any country-specific variations (e.g. agreement 1 applies to all of
product No. 1 except for sales in the UK).

Table 5

A simple summation of the royalty payment due to OGT.

39

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