Document:

exv10w45

 

Exhibit 10.45

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN
FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

			
	 	 	 
	DATED
	 	November 28, 2005

 

	 	 	 
	 
	(1)	 	DXS LIMITED
	 
	(2)	 	CEPHEID

 

LICENCE AGREEMENT

 

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS
BEEN FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

 

 

CONTENTS

	 	 	 	 	 	 	 
	Clause	 	 	 	Page	 
	1
	 	DEFINITIONS	 	 	4	 
	2
	 	GRANT OF RIGHTS	 	 	8	 
	3
	 	(deleted)	 	 	9	 
	4
	 	TECHNICAL INFORMATION	 	 	9	 
	5
	 	IMPROVEMENTS	 	 	10	 
	6
	 	CONFIDENTIALITY	 	 	10	 
	7
	 	PAYMENT	 	 	12	 
	8
	 	RECORDS	 	 	14	 
	9
	 	LICENSEE'S
OBLIGATIONS	 	 	15	 
	10
	 	PATENTS	 	 	15	 
	11
	 	PATENT INFRINGEMENT	 	 	16	 
	12
	 	TRADE MARKS	 	 	16	 
	13
	 	TERM AND TERMINATION	 	 	18	 
	14
	 	CONSEQUENCES OF TERMINATION	 	 	20	 
	15
	 	LIABILITY	 	 	21	 
	16
	 	ASSIGNMENT	 	 	20	 
	17
	 	RELATIONSHIP OF THE PARTIES	 	 	22	 
	18
	 	SEVERABILITY	 	 	23	 
	19
	 	ENTIRE AGREEMENT/RELIANCE ON REPRESENTATIONS	 	 	23	 
	20
	 	VARIATIONS	 	 	23	 
	21
	 	WAIVER	 	 	23	 
	22
	 	GOVERNING LAW AND JURISDICTION	 	 	23	 
	23
	 	NOTICES	 	 	24	 
	24
	 	COUNTERPARTS	 	 	24	 
	Schedules
	 	 	 	 	 	 
	1
	 	PATENTS	 	23 AND 24
	2
	 	TRADEMARKS	 	 	26	 

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS
BEEN FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

 

 

THIS AGREEMENT is made on November, 28, 2005

BETWEEN

	(1)	 	DXS LIMITED a company registered in England (registered number 4160032) whose registered
office is at 48 Grafton Street, Manchester, M13 9XX, England (“the Licensor”); and
	 
	(2)	 	CEPHEID a California Corporation, having its principal place of business at 904 Caribbean
Drive, Sunnyvale, CA 94089, USA (“the Licensee”)

BACKGROUND

	(A)	 	The Licensor has the right to licence to the Licensee materials and methods relating to the
Scorpions Technology.
	 
	(B)	 	The Licensee wishes to obtain a licence under the Patents and Know-How in order for it to
develop and sell assay products embodying the Scorpions Technology in the Field.

	 
	1.	 	DEFINITIONS
	 
	1.1	 	In this Agreement the following expressions have the following meanings unless inconsistent
with the context:

	 	 	 
	“Affiliate”

	 	any company or business entity Controlled by,
Controlling or under common Control with a
party to this Agreement
	 
	 	 
	“Background Rights”

	 	Intellectual Property rights owned or
controlled by a Party prior to the Commencement
Date of this Agreement
	 
	 	 
	“Commencement Date”

	 	the date above that this Agreement is made

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN
FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

 

 

	 	 	 
	“Confidential Information”

	 	all information which is commercially sensitive
or of a secret nature (including Know-How),
provided that such information is identified at
the time of disclosure as confidential; and,
for any such information that is disclosed in
writing, such information must be marked
confidential; and for such information that is
disclosed orally, such information must be
stated to be confidential at the time of
disclosure and must be followed up within 30
days in writing identifying the information as
confidential; wherein such confidential
information is relating to any and all aspects
of the business affairs or technology of the
disclosing party. Such information may be
expressed in any form including orally, as an
idea, as price lists, plans, in documentation
or details or computer software
	 
	 	 
	“Control”

	 	the direct or indirect ownership of at least
fifty per cent (50%) of the voting stock of a
corporation, or in the absence of ownership of
at least fifty per cent (50 %) of the voting
stock of that corporation, the power directly
or indirectly, to direct or cause the direction
of the management and policies of such
corporation and / or business entity and
“Controlled” and “Controlling” shall be
construed accordingly
	 
	 	 
	“Field”

	 	the human in vitro diagnostics field
	 
	 	 
	“Improvements”

	 	any improvement or modification to the Know-How
and/or the Patents, the practice of which would
be covered by a valid claim of the Patents,
which (whether or not patentable) might
reasonably be of commercial interest in the
design, manufacture or supply of the Products
and which may be made or acquired by any party
during the term of this Agreement

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN
FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

 

 

	 	 	 
	“Know-How”

	 	all substantial and confidential knowledge,
experience, data, technical or commercial
information, inventions and all other
intellectual property rights (other than the
Patents) controlled by the Licensor at any time
during the term of this Agreement relating to
the Scorpions Technology to the extent such is
necessary for the development, use and/or
commercialization of the Products in the Field
	 
	 	 
	"***”

	 	the *** of the Products ***; any ***; discounts
or credits actually given by the Licensee for
returned or defective goods; freight, insurance
and other transportation costs reasonably
incurred; tariffs, duties, sales tax and value
added tax or any other applicable sales tax or
government levies) or such other price which is
deemed to be the *** pursuant to clause 7.
	 
	 	 
	“Patents”

	 	(a)   All patents, patent applications,
continuations, divisionals, extensions,
reissues, foreign equivalents thereto, and any
patents or applications claiming priority from
any of the above, that are owned or controlled
by DxS relating to the Scorpions Technology.

	 
	 	 
	 

	 	(b)   As of the effective date, the Patents are
listed below in Schedule 1.

	 
	 	 
	“Products”

	 	any assay kit or other composition manufactured
for use within the Field, the manufacture, use,
sale, or import of which would, but for the
license, infringe one or more valid claims of
one or more of the issued Patents

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN
FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

 

 

	 	 	 
	“Quarter”

	 	a fiscal quarter of a party, in each case the
three month period beginning on the first day
of January, April, July or October following
the Effective Date, and each three month period
thereafter, except that the first quarter shall
include the period from the Effective Date to
the first day of the nearest such three month
period following the Effective Date
	 
	 	 
	“Records”

	 	all files, records, documents, notebooks, books
and accounts relating to the business of the
Licensee and its sub-licensees including any
such information recorded or stored in writing
or upon magnetic tape or disc or otherwise
recorded or stored for reproduction, whether by
mechanical or electronic means and whether or
not such reproduction will result in a
permanent record being made and all other data
necessary for the determination of royalties
payable under clause 7
	 
	 	 
	“Scorpions Technology”

	 	the means, methods and compositions used to
detect nucleic acid amplification based on
compositions that have one or more
amplification primer portions linked to one or
more nucleic acid probe portions and that are
detectable as a result of the extension of one
of the primers without concomitant
amplification of the probe portion as described
in Exhibit A
	 
	 	 
	“Supply”

	 	sell, lend, let out on hire, lease or otherwise

dispose of
	 
	 	 
	“Territory”

	 	the world
	 
	 	 
	“Third Party”

	 	shall mean any person or entity other than the
Licensor, the Licensee or either of its
respective Affiliates
	 
	 	 
	“Trade Marks”

	 	the trade marks listed in Schedule 3
	 
	 	 
	“Year”

	 	the period of one year commencing on the
Commencement Date and each consecutive year
thereafter

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN
FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

 

 

	1.2	 	In this Agreement:

	 	1.2.1	 	the masculine includes the feminine and the neuter, and the singular
includes the plural and vice versa, as the context admits or requires.
	 
	 	1.2.2	 	the index and headings to the clauses and Schedules are for convenience
only and will not affect its construction or interpretation.
	 
	 	1.2.3	 	references to a statute or statutory provision include, unless the context
otherwise requires, a reference to that statute or statutory provision as from time
to time amended, modified, extended, re-enacted, consolidated and all statutory
instruments, orders, by-laws, directions and notices made pursuant to it.
	 
	 	1.2.4	 	a reference to a clause or Schedule is a reference to a clause or Schedule
of this Agreement and references in any Schedule to paragraphs relate to the
paragraphs in that Schedule.
	 
	 	1.2.5	 	the Schedules form part of this Agreement and will have the same force and
effect as if expressly set out in the body of this Agreement and any reference to
this Agreement will include the Schedules.
	 
	 	1.2.6	 	any reference to this Agreement or any other agreement or document will be
construed as a reference to this Agreement or, as the case may be, that other
agreement or document, as it may have been, or may from time to time be, amended,
varied, supplemented, substituted, novated or assigned.

	2.	 	GRANT OF RIGHTS

	2.1	 	Subject to clauses 2.2 and 2.3, in consideration of the payments to be made by the Licensee
to the Licensor pursuant to clause 7, the Licensor grants to the Licensee with effect from the
Commencement Date, a non-exclusive, non-sublicensable licence within the Field and the
Territory to use the Patents and the Know-How, to develop and have developed, make and have
made, to Supply and have Supplied (either directly or through distributors), to import and
have imported and to use and have used the Products within the Field.

	2.2	 	In regard to the Licence in clause 2.1, Licensee shall be entitled to sublicence its
Affiliates, provided that:

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN
FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

 

 

	 	2.2.1	 	The sublicence is in writing and contains the like obligations and
undertakings by the sublicensee as are contained in this Agreement (except this
Clause 2.2) including in particular (but not limited to) Clause 6 (confidentiality)
and Clause 16, and the Licensee ensures that all sublicensees duly observe and
perform the same and will terminate if the sublicensee ceases to be an Affiliate of
the Licensee; and
	 
	 	2.2.2	 	Licensee shall remain responsible for all acts and omissions of the such
sublicensees as though they were by the Licensee and shall indemnify and keep
indemnified the Licensor against all or any losses, cost, claims, damages or expenses
incurred by the Licensor or for which the Licensor may become liable as a result of
the default or negligence of any sublicensee.

	2.3	 	In regard to the licence in clause 2.1, Licensee shall be entitled to pass through to the
end-user customers of its Products the right to use those Products in the Field for the
purposes for which they are licensed.

	3.	 	deleted

	4.	 	TECHNICAL INFORMATION

	4.1	 	As soon as reasonably practicable, after the Licensee’s reasonable request, the Licensor will
supply to the Licensee such Know-How in its possession (which the Licensor is lawfully
permitted to disclose) and which is reasonably necessary for the development, manufacture, use
and Supply of the Products in the Field in accordance with this Agreement. For the avoidance
of doubt, the supply of Know-How pursuant to this clause 4.1 shall not include the provision
of any product design or development work by the Licensee. The terms of any product design or
development work required from the Licensor would need to be agreed and negotiated on a case
by case basis.
	 
	4.2	 	Such Know-How supplied by the Licensor shall be subject to the provisions of clause 6
(confidentiality) and shall be used by the Licensee only for the purposes of and subject to
the terms of this Agreement.

	4.3	 	The Licensee undertakes that, for so long as any part of the Know-How remains subject to the
obligations of confidence of this clause 4, it will not use the Know-How for any purpose
except as expressly permitted in this Agreement.

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN
FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

 

 

	4.4	 	Each party shall designate a representative who shall be the primary point of contact for
issues arising under this Agreement and for the exchange of information under this clause 4.
Each party may replace their representative upon providing the other party with prompt written
notice of such replacement.

	 
	5.	 	IMPROVEMENTS
	 
	5.1	 	Each party shall disclose to the other party in confidence and in reasonable detail all
Improvements that it may develop or acquire except insofar as is prohibited by law or by
obligation to any other person.
	 
	5.2	 	The Licensee shall have an option to a non-exclusive, worldwide, royalty bearing licence to
use all Improvements the Licensor is due to disclose to the Licensee under clause 5.1 of this
Agreement, and to use and exploit all intellectual property rights in respect thereof owned by
the Licensor or any assignee or successor in title of the Licensor. The terms of the licence
relating to the field of use and the royalties payable shall be negotiated upon reasonable
terms in good faith between the Licensee and the Licensor.
	 
	5.3	 	The Licensor shall have an option to a non-exclusive, worldwide, royalty bearing licence to
use all Improvements the Licensee is due to disclose to the Licensor under clause 5.1 of this
Agreement, and to use and exploit all intellectual property rights in respect thereof owned by
the Licensee or any assignee or successor in title of the Licensee. The terms of the licence
relating to the field of use and the royalties payable shall be negotiated upon reasonable
terms in good faith between the Licensor and the Licensee. However, for the avoidance of
doubt, such option above to Improvements shall not include any option to Background Rights of
Licensee that might be necessary to practice such Improvements.
	 
	5.4	 	Save as otherwise provided in this Agreement, Improvements arising from work carried out by
the Licensor alone shall remain the exclusive property of the Licensor and Improvements
arising from work carried out by the Licensee alone shall remain the exclusive property of the
Licensee.

	 
	6.	 	CONFIDENTIALITY
	 
	6.1	 	Each party agrees during the term of this Agreement and for a period of ten years after
expiry or termination of this Agreement howsoever arising to keep secret and confidential all
Confidential Information obtained from any of the others. Each party further agrees to use
such Confidential Information exclusively for the purposes of

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN
FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

 

 

	 	 	this Agreement (which includes
exercise of their respective rights under clauses 5.2 and 5.3), and only to disclose the same
as follows:

	 	6.1.1	 	(in the case of the Licensee) to its own directors or employees and those
of its Affiliates, in each case concerned in the development, manufacture, use or
sale of the Products provided that before any such disclosure takes place such
persons are made aware of the confidential nature of the information and are made
subject to the same confidentiality obligations of the Licensee by executing
confidentiality undertakings to that effect;
	 
	 	6.1.2	 	(in the case of the Licensor and the Licensee) in relation to
communications with and from regulatory authorities in the Territory relating to the
Products and then only to the extent necessary to comply with such obligations;
	 
	 	6.1.3	 	(in the case of the Licensor and the Licensee) in connection with its use
and licensing of Improvements; and
	 
	 	6.1.4	 	(in the case of the Licensor) in the relation to audits in accordance with
clause 8.1.

	6.2	 	The provisions of clause 6.1 shall not apply to Confidential Information or other information
which the Licensor or the Licensee (as the case may be):

	 	6.2.1	 	can prove to have been in its possession (other than under any obligation
of confidence) at the date of initial receipt from any of the others; or which
becomes public knowledge otherwise than through a breach of any obligation of
confidentiality owed to the party communicating such information to any of the
others; or which is rightfully received by the recipient from a third party that was
not obligated to keep such information confidential; or which is disclosed by the
recipient with the discloser’s prior written approval;
	 
	 	6.2.2	 	is required to be disclosed pursuant to an obligation under statute or to
a statutory or governmental body, but then only to the extent of such
requirement and provided that all such steps are taken to ensure that minimal
information is disclosed; or
	 
	 	6.2.3	 	can prove to have been developed by or for the other Party without
reference to or reliance on the Confidential Information of the disclosing Party

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN
FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

 

 

	6.3	 	The provisions of this clause 6 shall remain in force notwithstanding termination of this
Agreement for a period of ten years beyond termination.

	 
	7.	 	PAYMENT
	 
	7.1	 	As part of the consideration of the rights granted by the Licensor to the Licensee under this
Agreement, the Licensee shall pay to the Licensor the following initial fee in two parts in
accordance with the following schedule:

	 	7.1.1	 	£*** (*** pounds) on the Commencement Date;
	 
	 	7.1.2	 	£*** (*** pounds) on or before January 15, 2007
Payment of the fees set out at clauses 7.1.1 and 7.1.2 above shall be made by the Licensee
within fifteen (15) days of the dates specified.

	7.2	 	In addition to the payment to be made under Clause 7.1. to the Licensee under this Agreement,
the Licensee shall during the term of this Agreement pay to the Licensor a royalty of *** of
the *** of all *** by the Licensee and any of its sublicensees.
	 
	7.3	 	If the Products are:

	 	7.3.1	 	rented, leased, let out or hired or otherwise disposed of to a customer by
the Licensee or an Affiliate (other than as a sub-licensee);
	 
	 	7.3.2	 	used by the Licensee or its Affiliates or sub-contractors for their own
commercial purposes other than research for the Licensee with a view to creating
Improvements;

	7.4	 	the *** of each such Product shall be deemed to be equivalent to the *** which would have
been applicable under this Agreement had such Product been transferred to an independent arm’s
length customer.
	 
	7.5	 	Payments due under clause 7.2 shall be made within 30 days of the end of each Quarter in
respect of royalties accruing on *** in that Quarter.
	 
	7.6	 	All sums due under this Agreement:

	 	7.6.1	 	Except for the initial licence fee under Clause 7.1, which shall be made
in sterling, shall be made in US Dollars to the credit of the following bank account
Bank: Royal Bank of Scotland Plc, Account Name: DxS Limited Licence USDA, Sort Code:
*** Account Number: *** or such other bank

 

 

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN
FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

	 	 	 	account as the Licensor shall nominate
from time to time. Conversion into sterling shall be calculated:

	 	7.6.1.1	 	in the case of each royalty payment at the middle rate of exchange ruling
on the London Stock Exchange according to an agreed publication on the last
day of the Quarter in respect of which the payment is due; and
	 
	 	7.6.1.2	 	in the case of all other payments at the middle rate of exchange ruling
on the London Stock Exchange on the day payment is made or due, whichever is
earlier.

	 	7.6.2	 	are exclusive of any value added tax which shall be payable in addition by
the Licensee on the rendering by the Licensor of any appropriate value added tax
invoice. The Licensee shall pay any costs, interest and penalties due by reason of
late payment of any such value added tax; and
	 
	 	7.6.3	 	shall be made in full without deduction of taxes, charges and other duties
(including any withholding or other income taxes) that may be imposed, except where
the Licensee is required by law to make such deduction or withholding, in which event
the Licensee shall:

	 	7.6.3.1	 	ensure that the deduction or withholding does not exceed the minimum
amount legally required;
	 
	 	7.6.3.2	 	pay to the applicable taxation or other authorities within the period for
payment permitted by law the full amount of the deduction or withholding
(including, but without prejudice to the generality of the foregoing, the
full amount of any deduction or withholding from any additional amount paid
pursuant to this sub-clause);
	 
	 	7.6.3.3	 	furnish to the Licensor, within the period for payment permitted by law,
either an official receipt of the applicable taxation or other authorities
for all amounts deducted or withheld as
aforesaid or, if such receipts are not issued by the taxation or
other authorities concerned on payment to them of amounts so
deducted or withheld, a certificate of deduction or equivalent
evidence of the relevant deduction or withholding; and

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN
FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

 

 

	 	7.6.3.4	 	co-operate in all respects necessary to permit the Licensor to take
advantage of such double taxation agreements as may be available.

	7.7	 	If any stamp taxes, registration taxes, turnover taxes, or other taxes, duties or
governmental charges are levied on this Agreement by reason of its execution or performance,
other than those identified in clause 7.6.3, it shall be the responsibility of the Licensee to
pay all such taxes when due. Such taxes shall be in addition to other amounts payable by the
Licensee and shall not be set off against any of the amounts due to the Licensor under this
Agreement.
	 
	7.8	 	The Licensee agrees to release and indemnify the Licensor from and against all liability of
whatever nature arising out of the Licensee’s failure duly and timely to pay and discharge any
of the above-mentioned taxes.
	 
	7.9	 	If the Licensee shall fail to pay any amount specified under this Agreement on its due date,
the amount shall bear interest at ***% above the base rate of the Royal Bank of Scotland on
the sums due, from the date payment was due, to the date such payment was made.

	 
	8.	 	RECORDS
	 
	8.1	 	The Licensee agrees to keep and to procure that its sub-licensees keep true and accurate
Records. The Licensor shall have the right, at its sole expense, to retain a firm of
independent certified public accountants, acceptable to the Licensee (which acceptance shall
not be unreasonably withheld or delayed), to have access to such Records during business hours
to audit them to determine whether or not the Reports are complete and accurate, provided that
such accountant shall only advise Licensor whether or not Licensee’s Reports were complete and
accurate and, if not complete or inaccurate, the correct figures that should have been
reported. The Licensor’s accountants may take copies of the Records for the purposes of the
audit. The Licensor may conduct such an audit once per year. The Licensor shall be solely
responsible for the costs of the inspection unless the inspection reveals that any reports are
inaccurate by ***% or more in which event the Licensee shall reimburse the Licensor for all
the Licensor’s costs (including the accountants costs) of the inspection.
	 
	8.2	 	The Licensee shall submit to the Licensor at the same time the payments are made in
accordance with clause 7.5 a statement indicating the quantity of Products made, used and
Supplied and the *** of Products during the previous six month period, and the royalties due.

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN
FILED WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH
RESPECT TO THE OMITTED PORTIONS.

 

 

	8.3	 	The Licensor agrees to maintain confidential all financial information received with respect
to the Licensee’s operations pursuant to clauses 8.1 and 8.2.

	 
	9.	 	LICENSEE’S OBLIGATIONS
	 
	9.1	 	During the continuance of this Agreement the Licensee shall:

	 	9.1.1	 	ensure that all Products Supplied by the Licensee meet all applicable laws
and regulations relating to them;
	 
	 	9.1.2	 	attach to all Products a label stating that such Products are made under
licence from the Licensor and that the Product may only be used within the Field, the
text of such acknowledgement to be provided by the Licensor;
	 
	 	9.1.3	 	not act as agent of the Licensor, and specifically not give any indication
that it is acting otherwise than as principal, and in advertising or Supplying
Products not make any representations or give any warranty on behalf of the Licensor.

	10.	 	PATENTS
	 
	10.1	 	The Licensor represents and warrants to the Licensee that, as of the Commencement Date:

	 	10.1.1	 	it owns or has the right to licence the Scorpions Technology;
	 
	 	10.1.2	 	the Licensor has not received written notice that any of the Patents existing as of
the Commencement Date is invalid or unenforceable;
	 
	 	10.1.3	 	the Licensor has not received any written claim challenging any of the Licensor’s
rights, use or ownership of any of the Patents or the Know How
	 
	 	10.1.4	 	the Licensor neither owns nor controls any intellectual property rights that are
not licensed hereunder that would block the practice of the Patents licensed
hereunder,.

	10.2	 	The Licensee agrees that it shall not obtain any right, title or interest in or to the
Patents and/or Know-How other than such as may be granted to it under this
Agreement and the Licensee shall not do or permit anything to be done in its use of the
Patents which would jeopardise their validity. Nothing in this Agreement shall prevent or
hinder the Licensee challenging the validity of the Patents.

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE
NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SECURITIES EXCHANGE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

 

 

	11.	 	PATENT INFRINGEMENT
	 
	11.1	 	If the Licensee becomes aware of any infringement of the Patents or Trade Marks or misuse of
the Know-How it shall promptly notify the Licensor and provide all details within its
knowledge. The Licensee shall also provide the Licensor with all assistance requested by the
Licensor for the purposes of any infringement action the Licensor may bring.
	 
	11.2	 	The Licensor shall be under no obligation to take any action regarding any infringements that
come to its attention other than writing to the alleged infringer, whether through the
institution of legal proceedings or otherwise, but should the Licensor in its reasonably
exercised discretion decide to take any such action, it shall do so at its own cost and the
Licensee shall have no claim to any sums recovered by the Licensor. The Licensee shall not be
entitled to take action itself.
	 
	11.3	 	If an unlicensed Third Party is making, using, selling or importing a competitive product
that infringes a claim in the Patents, and the gross sales of that infringing product in the
country of the Patent in question are at least thirty percent (30%) of the Licensee’s sales of
the Products in such country, the Licensee shall notify the Licensor in writing to that
effect. If, prior to the expiration of one hundred and twenty (120) days from the date of the
said notice, the Licensor obtains a discontinuance of such infringement or issues a claim
against the Third Party infringer and takes reasonable steps to prosecute such suit, the
Licensee’s obligations to pay the Licensor royalties under this Agreement shall remain
unchanged. If, after the expiration of one hundred and twenty (120) days from the date of the
said notice, the Licensor has not obtained a discontinuance of such infringement, or not
issued a claim against the Third Party infringer or if the Licensor fails to take reasonable
steps to take such action, then the royalty payments due from the Licensee shall be reduced to
*** of the amounts set out under clause 7 of this Agreement in respect of Products Supplied in
the affected jurisdiction until such time as the Licensor obtains a discontinuance of such
infringement or brings a claim against the Third Party infringer or takes appropriate steps in
relation to such action.

	12.	 	TRADEMARKS
	 
	12.1	 	The Licensor grants to the Licensee the non-exclusive right to use the Trademarks on the
Products and in relation to the advertising and marketing of the Products in accordance with
the terms set out in this Agreement.

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE
NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SECURITIES EXCHANGE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

 

 

	12.2	 	Before selling or otherwise disposing of the Products that refer to the Trademarks, the
Parties will work to achieve an agreed-upon format and language regarding the Trademarks that
may be used on all such Products. Once that format and language are agreed, Licensee’s
consistent use of that agreed-upon format and language on a Product will eliminate the need
for prior approval for use of the Trademarks for that Product. However, for any Product
packaging not conforming with that prescription, the Licensee shall provide free of charge to
the Licensor for approval exemplary samples of any Product packaging making reference to the
Trademarks, such approval not to be unreasonably withheld by the Licensor. Within 14 days of
receipt of such samples, the Licensor shall notify the Licensee as to whether such samples are
approved. If the Licensor shall not have indicated approval within such 14 days then such
samples shall be deemed to have been approved. No Product will be sold as referring to the
Trademarks until approved under this clause 12.2.
	 
	12.3	 	The Licensee will not use in the Territory in connection with Products or any goods similar
to Products any other trademarks so resembling the Trademarks as to be likely to cause
confusion or deception.
	 
	12.4	 	The Licensee will use the Trademarks precisely as spelt or drawn by the Licensor and shall
observe all reasonable directions given by the Licensor from time to time as to colour and
size and the manner and disposition thereof on the Products and packaging for the Products as
notified by the Licensor.
	 
	12.5	 	The Licensee shall only use the Trademarks for the purposes authorised in this Agreement and
shall not use the Trademarks in any way which would tend to allow them to become generic, lose
their distinct likeness, or become liable to mislead the public, nor use the Trademarks in any
way which is materially detrimental to or inconsistent with the good name, goodwill,
reputation and image of the Licensor.
	 
	12.6	 	The Licensee shall not adopt or use any trademark, symbol or device that incorporates or is
confusingly similar to, or is a simulation or colourable imitation of, the Trademarks, or
unfairly competes with the Trademarks. The Licensee shall not during the period of this
Agreement, apply anywhere in the world to register any trademarks identical to or so nearly
resembling the Trademarks as to be likely to deceive or cause confusion. If the Licensee does
apply to register any trademarks which are, in the reasonable opinion of the Licensor,
identical to or so nearly resembling the Trademarks as to be likely to deceive or cause
confusion, the Licensee shall at the request of the Licensor assign any such application or
registration for those trademarks and any associated rights or goodwill attaching to those
trademarks to the Licensor.

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE
NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SECURITIES EXCHANGE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

 

 

	12.7	 	Where Products marketed or intended to be marketed with reference to the Trademarks do not
conform with the samples approved by the Licensor and the other requirements of this Agreement
the Licensor and the Licensee shall promptly meet and negotiate in good faith in an effort to
correct such deficiency. The Licensee agrees to consider in good faith all comments provided
by the Licensor in accordance with the provision of this clause 12.7.
	 
	12.8	 	The Licensee acknowledges that the Trademarks are and will remain the property of the
Licensor, and the Licensee shall not acquire any title or interest in the Trademarks or
goodwill as a result of the Licensee’s use of them, and all use of the Trademarks shall inure
for the Licensor’s benefit.
	 
	12.9	 	The Licensee shall not do or permit to be done, nor omit to do in connection with its use of
the Trademarks, any act or thing which would or might jeopardise or invalidate any
registration of the Trademarks or give rise to an application to remove any of the Trademarks
from the register (maintained by the relevant Trademarks Registry) or which might prejudice
the right or title of the Licensor to any of the Trademarks provided that, without prejudice
to clause 12.5, nothing in this Agreement shall prevent or hinder the Licensee challenging the
validity of the Trade Marks.

	13.	 	TERM AND TERMINATION
	 
	13.1	 	This Agreement comes into effect on the Commencement Date and unless terminated earlier under
the provisions of this clause 13 shall remain in full force and effect until whichever is the
later of:

	 	13.1.1	 	the last to expire of the Patents in each country of the Territory where
there are Patents subsisting; or

	 	13.1.2	 	when the Know-How ceases to be secret and substantial.

	13.2	 	The Licensor may terminate this Agreement by notice in writing if the Licensee is in breach
of this Agreement and shall have failed (where the breach is capable of remedy) to remedy the
breach within 60 days of the receipt of a request in writing from the Licensor to remedy the
breach, such request setting out the breach and indicating that failure to remedy the breach
may result in termination of this Agreement.
	 
	13.3	 	The Licensee may at any time terminate this Agreement following 60 days prior written notice
to the Licensor. For the avoidance of doubt, as set out in clause 14.1.1, any such
termination shall not affect all the accrued rights and obligations of the Licensee at the
date of termination including all payments due from the Licensee to the Licensor.

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE
NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SECURITIES EXCHANGE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

 

 

	13.4	 	In addition to the powers of termination contained elsewhere in this Agreement either party
may by written notice terminate this Agreement immediately if the other party-

	 	13.4.1	 	has any distraint, execution or other process levied or enforced on any of
its property that would materially encumber its ability to trade;

	 	13.4.2	 	ceases, or appears, in the reasonable opinion of the Licensor, likely or
is threatening to cease to trade;

	 	13.4.3	 	the equivalent of any of the above occurs to that party under the
jurisdiction to which that party is subject.

	13.5	 	The Licensee shall notify the Licensor of any change in Control of the Licensee (such
disclosure being kept confidential by the Licensor until it becomes a matter of public
knowledge).
	 
	13.6	 	If at any time during this Agreement the Licensee directly or indirectly:

	 	13.6.1	 	opposes or assists any third party to oppose the grant of letters patent
on any patent application or disputes or directly or indirectly assists any third
party to dispute the validity of any Patent or any of its claims; or

	 	13.6.2	 	contests or disputes the Licensor’s entitlement to or ownership of any of
the Patents, or

	 	13.6.3	 	contests the validity of any of the Trade Marks;

then the Licensor shall be entitled at any time thereafter to terminate this Agreement by
notice thereof to the Licensee.

	13.7	 	Either party shall be entitled to terminate this Agreement if the other party becomes
insolvent or is the subject of a petition in bankruptcy, whether voluntary or involuntary, or
of any other proceeding under bankruptcy, insolvency or similar laws, makes an assignment for
the benefit of creditors, is named in such petition, or its property is subject to a suit for
the appointment of a receiver, or is dissolved or liquidated, unless in each case such
petition or proceeding is discharged or dismissed within ninety (90) days of the petition
being filed or the proceeding being commenced (each an “Insolvency Event”). Such termination
right may be exercised

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE
NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SECURITIES EXCHANGE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

 

 

	 	 	within sixty (60) days following the date as of which the party
entitled to terminate receives knowledge of the Insolvency Event affecting the other party, by
giving such other party written notice.

	14.	 	CONSEQUENCES OF TERMINATION
	 
	14.1	 	All rights and obligations of the parties shall cease to have effect immediately upon
termination of this Agreement except that termination shall not affect:

	 	14.1.1	 	the accrued rights and obligations of the parties at the date of
termination; and

	 	14.1.2	 	the continued existence and validity of the rights and obligations of the
parties under those clauses which are expressed to survive termination and any
provisions of this Agreement necessary for the interpretation or enforcement of this
Agreement.

	14.2	 	Upon termination of this Agreement howsoever occasioned:

	 	14.2.1	 	the Licensee’s rights to use the Patents, Trade Marks and/or the Know-How
under this Agreement shall forthwith cease (subject to such Patents not having
expired and/or such Know-How being substantial and confidential);

	 	14.2.2	 	the Licensee shall return promptly to the Licensor all technical and
promotional material in its possession relating to the Products and all copies of
such material, and deliver up to the Licensor (or to whomsoever the Licensor shall
direct) free of charge all such materials held by the Licensee in relation to the
Products or in the alternative destroy all such materials and provide written
assurance of its destruction by an officer of the Licensee;

	 	14.2.3	 	the Licensor shall at its discretion either grant the Licensee sufficient
time to sell existing stocks of the Products, including stocks on order and in
transit at that time which period shall not exceed 3 months, and thereafter the
Licensor at its discretion may require the destruction of all remaining stocks or
purchase from the Licensee all residual stocks in store which are in good and
suitable condition, the price for the sale of such stocks being the lower of the cost
to the Licensee of such stocks or their market value.

	14.3	 	The provisions of clause 14.2 shall remain in force notwithstanding termination of this
Agreement.

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE
NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SECURITIES EXCHANGE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

 

 

	15.	 	LIABILITY
	 
	15.1	 	The Licensee shall at all times indemnify and keep indemnified the Licensor against all costs,
claims, damages or expenses incurred by the Licensor or for which the Licensor may become
liable with respect to any product liability claim relating to Products Supplied or put into
use by the Licensee (or any sub-licensee)
pursuant to this Agreement. The Licensee shall maintain product liability insurance
coverage of at least US$***. The Licensee shall supply the Licensor with a copy of such
insurance policy on request and shall not terminate such policy without prior written
notice to the Licensors.
	 
	15.2	 	The Licensee shall be exclusively responsible for all Products Supplied by the Licensee and
accordingly the Licensee shall indemnify the Licensor in respect of all costs, claims and
expenses or other liabilities incurred as a result of any claims by third parties in tort or
otherwise against the Licensor arising in any way out of the use of any of the Know-How,
Patents or Products by the Licensee.
	 
	15.3	 	The Licensor’s aggregate liability subject to clause 15.6 under this Agreement whatsoever
(whether in contract, tort (including negligence), breach of statutory duty, restitution or
otherwise) for any injury, death, damage or direct, indirect or consequential loss (all three
of which terms include, without limitation, loss of profits, loss of business, depletion of
goodwill and like loss) howsoever caused will be limited to the sums paid to it by the
Licensee under clauses 7.1 and 7.2 of this Agreement.
	 
	15.4	 	Except as provided in clause 15.6, the Licensor will be under no liability to the Licensee
whatsoever (whether in contract, tort (including negligence), breach of statutory duty,
restitution or otherwise) for any indirect or consequential loss (all three of which terms
include, without limitation, pure economic loss, loss of profits, loss of business, depletion
of goodwill and like loss) howsoever caused arising out of or in connection with:

	 	15.4.1	 	any breach by the Licensor of any of the express or implied terms of this
Agreement; or

	 	15.4.2	 	any statement made or not made, or advice given or not given, by or on
behalf of the Licensor

	 	 	or otherwise under this Agreement.

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE
NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SECURITIES EXCHANGE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

 

 

	15.5	 	Except as expressly set forth in this Agreement and to the extent permitted by law, the
Licensor does not make any, and disclaims all other, representations and warranties of any
kind whatsoever, whether express or implied, including
without limitation warranties of merchantability, fitness for a particular purpose and
non-infringement of any third party patents or proprietary rights.
	 
	15.6	 	Nothing in this Agreement shall limit the liability of the Licensor for death or personal
injury caused by its negligence or for fraudulent misrepresentation.

	16.	 	ASSIGNMENT
	 
	16.1	 	The Licensor may at any time assign the benefit (with the exception of the assignment of
present, future or contingent interest or right to any sums or damages payable by the Licensee
under or in connection with this Agreement) or delegate the burden of this Agreement or
otherwise sub-contract, mortgage, charge or otherwise transfer or hold on trust any or all of
its rights and obligations under this Agreement.
	 
	16.2	 	The Licensee may not assign the benefit or delegate the burden of this Agreement or hold this
Agreement on trust for any other person, provided, however, that the Licensee shall be
entitled to assign the benefit this Agreement to an Affiliate of the Licensee subject to
clause 16.4,
	 
	16.3	 	The Licensee may effect an assignment or transfer the Licensee’s rights and obligations under
this Agreement in the case of: (a) the sale of the assets of the molecular diagnostic business
by the Licensee or an Affiliate of the Licensee or (b) the sale of the controlling interest in
an Affiliate which is engaged in or controls the molecular diagnostic business or activities
thereof, on payment of a lump sum of £*** (*** pounds) to the Licensor, payment to be made on
the date of the assignment.
	 
	16.4	 	The Licensee shall notify the Licensor at least 14 days prior to assigning the benefit of
this Agreement to an Affiliate and any such assignment shall prevent the assignee assigning on
except to an Affiliate of the Licensee and shall oblige any assignee to reassign to the
Licensor if it ceases to be an Affiliate of the Licensor.

	17.	 	RELATIONSHIP OF THE PARTIES
	 
	 	 	Nothing contained in this Agreement, and no action taken by the parties pursuant to this
Agreement, will be deemed to constitute a relationship between the parties of partnership, joint venture, principal and agent or employer and employee.
Neither party has, nor may it represent that it has, any authority to act or make any
commitments on the other party’s behalf.

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE
NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SECURITIES EXCHANGE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

 

 

	18.	 	SEVERABILITY
	 
	 	 	Whenever possible, each provision of this Agreement will be interpreted in such manner as
to be effective and valid under the applicable law, but if any provision of this Agreement
is held to be prohibited by or invalid under the applicable law, such provision will be
ineffective only to the extent of such prohibition or invalidity, without invalidating the
remainder of the Agreement and the parties will negotiate a replacement provision to carry
out, to the extent legally possible, the original intent of the parties..

	19.	 	ENTIRE AGREEMENT/RELIANCE ON REPRESENTATIONS
	 
	 	 	This Agreement contains all the terms that the parties have agreed in relation to the
subject matter of this Agreement, and supersedes any prior written or oral agreements,
representations (excluding fraudulent misrepresentation) or understandings between the
parties in relation to such subject matter.

	20.	 	VARIATIONS
	 
	 	 	No variation of this Agreement shall be valid unless it is in writing and signed by or on
behalf of each of the parties.

	21.	 	WAIVER
	 
	 	 	No failure or delay by any party to exercise any right, power or remedy will operate as a
waiver of it nor will any partial exercise preclude any further exercise of the same, or
of some other right, power or remedy.

	22.	 	GOVERNING LAW AND JURISDICTION
	 
	 	 	Governing Law
	 
	22.1	 	The formation, existence, construction, performance, validity and all aspects whatsoever of
this Agreement or of any term of this Agreement will be governed by the law of England and
Wales.
	 
	 	 	Jurisdiction

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE
NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SECURITIES EXCHANGE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

 

 

	22.2	 	Subject to clause 22.3, the courts of England and Wales will have non-exclusive jurisdiction
to settle any disputes that may arise out of or in connection with this Agreement. The
parties irrevocably agree to submit to that jurisdiction.
	 
	22.3	 	The parties irrevocably agree that a judgement or order of any court referred to in clause
22.2 is conclusive and binding upon the parties and may be enforced against the parties in the
courts of any other jurisdiction.

	23.	 	NOTICES
	 
	 	 	Any notice to be given hereunder by the Licensee to the Licensor or by the Licensor to the
Licensee shall be in writing and sent by courier service or postage pre-paid registered,
and shall be deemed given: when delivered; seven business days after deposit in the mail,
and shall be addressed:
	 
	 	 	If to the Licensee, to 904 Caribbean Drive, Sunnyvale, California 94089, USA or at its
address set out above;
	 
	 	 	If to the Licensor to the Licensor’s address set forth above, or to such other address as
any party shall hereafter designate by notice in writing to the other party.

	24.	 	COUNTERPARTS
	 
	 	 	This Agreement may be executed in any number of counterparts, each of which so executed
will be an original, but together will constitute one and the same instrument.

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE
NON-PUBLIC INFORMATION HAS BEEN FILED WITH THE SECURITIES EXCHANGE
COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO
THE OMITTED PORTIONS.

 

 

Schedule 1

Patents and Applications

Part 1

Scorpions Patents

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Territory	 	Number	 	Status	 	Priority Date	 	Filing Date	 	Date of Grant	 	Expiry Date
	UK

	 	GB2338301
	 	granted
	 	13 Jun 1998
	 	25 Nov 1998
	 	2 Aug 2000
	 	25 Nov 2018
	Europe

	 	EP1088102
	 	granted
	 	13 Jun 1998
	 	25 Nov 1998
	 	16 Jul 2003
	 	25 Nov 2018
	USA

	 	US6326145
	 	granted
	 	13 Jun 1998
	 	25 Nov 1998
	 	4 Dec 2001
	 	25 Nov 2018
	USA

	 	03/087240
	 	application
	 	13 Jun 1998
	 	10 Dec 2001	 	 	 	 
	Japan

	 	554879/2000
	 	application
	 	13 Jun 1998
	 	25 Nov 1998	 	 	 	 
	Canada

	 	PCT/98/03521
	 	application
	 	13 Jun 1998
	 	25 Nov 1998	 	 	 	 

Countries in which the Granted European Patent has been validated: Austria, Switzerland, Demark,
Sweden, France, Italy, Belgium, Germany, Spain, Ireland, Portugal, Netherlands.

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED
WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

 

Part 2

Non-amplifiable Tails Patents

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Territory	 	Number	 	Status	 	Priority Date	 	Filing Date	 	Date of Grant	 	Expiry Date
	Australia

	 	AU622349
	 	granted
	 	6 Sept 1989
	 	21 Aug 1990
	 	2 April 1992
	 	21 Aug 2010
	Germany

	 	DE69028891.3
	 	granted
	 	6 Sept 1989
	 	30 Aug 1990
	 	21 Nov 1996
	 	30 Aug 2010
	EP France

	 	041687
	 	granted
	 	6 Sept 1989
	 	30 Aug 1990
	 	16 Oct 1996
	 	30 Aug 2010
	EP Switzerland

	 	041687
	 	granted
	 	6 Sept 1989
	 	30 Aug 1990
	 	16 Oct 1996
	 	30 Aug 2010
	EP United Kingdom

	 	041687
	 	granted
	 	6 Sept 1989
	 	30 Aug 1990
	 	16 Oct 1996
	 	30 Aug 2010
	Japan

	 	JP3165431
	 	granted
	 	6 Sept 1989
	 	6 Sept 1990
	 	14 May 2001
	 	30 Aug 2010
	New Zealand

	 	235015
	 	granted
	 	6 Sept 1989
	 	22 Aug 1990
	 	26 Mar 1992
	 	30 Aug 2010
	USA

	 	US 5525494
	 	granted
	 	6 Sept 1989
	 	23 Feb 1994
	 	11 Jun 1996
	 	23 Feb 1014

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED
WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

 

SCHEDULE 2

Trade Marks

	 	 	 	 	 	 	 	 	 
	Trade Mark	 	Application/ Registration Number	 	Country	 	Classes
	SCORPIONS

	 	 	2177364	 	 	UK
	 	1, 5
	SCORPIONS

	 	 	75594052	 	 	US
	 	1, 5
	SCORPIONS

	 	 	2784395	 	 	CTM
	 	1, 5

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED
WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

 

	 	 	 
	SIGNED by /s/ Shalni Arora                     
	 	) CFO
	 
	 	 
	duly authorised to sign for and on
	 	)
	behalf of DXS LIMITED
	 	)
	 
	 	 
	 
	 	 
	SIGNED by /s/ Joseph Smith                    
	 	) Sr. V.P. & General Counsel
	duly authorised to sign for and on
	 	)
	behalf of CEPHEID
	 	)

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED
WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.

 

 

n  Exhibit A

n  Definitions of DXS Know-How and Scorpions Technology

Scorpions technology is the reagents and methods for detection of a target nucleic acid as
described in UK patent GB 2338301 and corresponding world-wide patents and patent applications. The
essential element of a Scorpions reaction is a tailed nucleic acid primer (the

Scorpion). This primer contains both a template binding region and a target binding region
separated by a linker region. Following extension of the Scorpions primer on a suitable template
the target binding region is able to hybridise to the primer extension product and generate a
signal.

DxS is the owner of the Scorpions patents and also possess know-how in the design, development,
manufacture and operation of Scorpions based tests. This know-how includes the identification of
suitable Scorpions primer sequences, the processes involved in optimising a Scorpions reaction to
detect a nucleic acid sequence, the evaluation of Scorpions

primers as part of the manufacturing process and the running of a service operation using Scorpions
based tests.

***CERTAIN INFORMATION WITHIN THIS EXHIBIT HAS BEEN OMITTED AND THE NON-PUBLIC INFORMATION HAS BEEN FILED
WITH THE SECURITIES EXCHANGE COMMISSION. CONFIDENTIAL TREATMENT HAS BEEN REQUESTED WITH RESPECT TO THE OMITTED PORTIONS.exv10w1

 

Exhibit 10.1

SOVEREIGN BANCORP, INC.

LEADERS INCENTIVE PLAN

 

Amended and Restated as of January 1, 2006

 

 

Table
of Contents

	 	 	 	 	 
	 

	 	Page

	 
	 	 	 	 
	ARTICLE 1 — PURPOSES OF THE PLAN

	 	 	1	 
	 
	 	 	 	 
	ARTICLE 2 — DEFINITIONS

	 	 	1	 
	 
	 	 	 	 
	ARTICLE 3 — ADMINISTRATION

	 	 	2	 
	 
	 	 	 	 
	ARTICLE 4 — PLAN OPERATION

	 	 	3	 
	 
	 	 	 	 
	ARTICLE 5 — MISCELLANEOUS PROVISIONS

	 	 	5	 
	 
	 	 	 	 
	EXHIBIT CORPORATE PERFORMANCE GOALS FOR 2006 PLAN YEAR

	 	 	7	 

i 

 

SOVEREIGN BANCORP, INC.

LEADERS INCENTIVE PLAN

ARTICLE 1 — PURPOSES OF THE PLAN

     The Sovereign Bancorp, Inc. Leaders Incentive Plan is intended to provide incentive to
Participants to assist the Corporation and its Subsidiaries in meeting and exceeding their
corporate financial goals. By offering the potential to earn additional compensation beyond base
salary, the Corporation and its Subsidiaries also intend that their goal of providing a competitive
total compensation program for Participants will be achieved, thereby assisting in attracting,
retaining and motivating certain personnel.

ARTICLE 2 — DEFINITIONS

     2.1 “Award.” A bonus, payable to a Participant in cash and/or Restricted Common Stock, as
determined by the Committee in accordance with the provisions of the Plan.

     2.2 “Board.” The board of directors of the Corporation.

     2.3 “CEO.” The chief executive officer of the Corporation.

     2.4 “Code.” The Internal Revenue Code of 1986, as amended.

     2.5 “Committee.” The Compensation Committee of the Board, or such other committee as may be
determined under the provisions of Article 3.

     2.6 “Common Stock.” The common stock of the Corporation (no par value) as described in the
Corporation’s articles of incorporation, or such other stock as shall be substituted therefor.

     2.7 “Corporate Performance Factor.” One or more earnings per share goals, established by the
Committee prior to the commencement of each Plan Year, that must be achieved (unless waived by the
Board) as a condition precedent to the declaration and payment of an Award (or a type of Award) to
any Participant. The Corporate Performance Factor, including any detail regarding its
determination, established for a Plan Year shall be attached from time to time as an exhibit, or a
replacement exhibit, to this Plan document.

     2.8 “Corporation.” Sovereign Bancorp, Inc., a Pennsylvania corporation.

     2.9 “Employee.” A full-time or part-time common law employee of the Corporation or a
Subsidiary. Such term shall not include a temporary or “leased” employee.

     2.10 “Individual Performance Factor.” A number or other evaluation with respect to the
performance of a Participant in a relevant Plan Year. The factor for a Participant shall be
derived through application to him or her of the terms of the Corporation’s Performance Management
Program, which program sets forth objectives (Business MBOs, Human and Commitment MBOs, Critical
Success Factors, and Human and Commitment Skills Criteria) to be met by a Participant.

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     2.11 “Participant.” With respect to a Plan Year, an Employee (i) who is classified in grade
10 or above under the Corporation’s personnel policies in effect at the beginning of such Plan
Year, or (ii) who is classified in grade 8 or 9 under such policies at such time and who, following
the recommendation of his or her department head or supervisor, is selected to participate prior to
the beginning of a Plan Year by the CEO and approved by the Committee. Additional individuals may
be specified as Participants after the beginning of a Plan Year in accordance with provisions set
forth elsewhere herein. Notwithstanding the preceding sentences, unless otherwise provided by the
Committee, no Employee who is a participant in any other incentive plan that provides for annual or
other period bonuses shall participate in this Plan during any Plan Year that overlaps with an
annual or other period under such other plan. The CEO shall not be eligible to participate in the
Plan.

     2.12 “Plan.” The Sovereign Bancorp, Inc. Leaders Incentive Plan, as amended and restated by
this document and as the same may be amended from time to time.

     2.13 “Plan Year.” A calendar year.

     2.14 “Restricted Common Stock.” Common Stock awarded to a Participant, the right to actual
unrestricted ownership of which is subject to satisfaction of such service or performance criteria
as may be specified by the Committee. The terms of any Restricted Common Stock awarded under the
Plan shall be as prescribed by the Committee.

     2.15 “Subsidiary.” A subsidiary corporation, as defined in Code Section 424(f), that is a
subsidiary of a relevant corporation.

     2.16 “Valuation Date.” The date as of which the Common Stock is valued for purposes of
determining how many shares are distributable to a Participant in connection with an Award declared
in monetary terms but payable in the form of equity. To the extent necessary with respect to a
Plan Year, such date shall be specified by the Committee at the time Awards are determined. If not
specified, the Valuation Date shall be December 31st of the applicable Plan Year.

ARTICLE 3 — ADMINISTRATION

     3.1 In General. The Plan shall be administered by the Committee. In the event the
Board determines, at any time, that it would in the best interest of the Corporation for the Plan
to be administered by a different group of individuals (including the Board itself), it may provide
for the administration of the Plan by such other individuals. In such event, all references to the
Committee herein shall be deemed to be references to such other individuals as a group.

     3.2 Powers of the Committee.

     (a) The Committee shall be vested with full authority to make such rules and
regulations as it deems appropriate to administer the Plan and to interpret the provisions
of the Plan. Any determination, decision or action of the Committee in connection with the
construction, interpretation, administration or application of the Plan shall be final,
conclusive and binding upon each Participant and any person claiming under or through a
Participant. The Committee may specify such persons as it deems appropriate to assist it in
carrying out its responsibilities under the Plan.

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     (b) Subject to the terms and conditions of the Plan, the Committee shall have exclusive
jurisdiction, among other things, to:

     (i) approve the recommendation of the CEO to provide for participation in the
Plan of grade 8 or 9 Employees;

     (ii) approve the recommendation of the CEO to provide for participation in the
Plan of grade 8 or higher Employees who are hired after the beginning of the relevant
Plan Year;

     (iii) approve the recommendation of the CEO to provide for the participation in
the Plan of Employees who are promoted to grade 8 or higher after the beginning of
the relevant Plan Year;

     (iv) determine the amount of each Award (if any) payable, or otherwise allocable
or distributable, to a Participant for a relevant Plan Year, and the form in which
such Award shall be made;

     (v) without any requirement to do so, waive strict application of any provision
of this Plan if, in its judgment, such waiver would be equitable under the
circumstances; and

     (vi) specify such conditions applicable to each Plan Award as it may deem
necessary, desirable or appropriate.

     3.3 Liability. No member of the Board, the Committee or any person (including the CEO
and any employee of Team Member Services) assisting the Board or the Committee in connection with
the administration of the Plan shall be liable for any act, whether of commission or omission, made
in reasonable good faith in connection therewith.

ARTICLE 4 — PLAN OPERATION

     4.1 In General. As soon as practical following the preparation of the Corporation’s
final audited financial statements for a relevant Plan Year, the Committee shall determine, or
cause to be determined under its supervision, whether the Corporate Performance Factor has been
achieved for the Plan Year.

     (a) In the event the Corporate Performance Factor is not achieved in whole or in part,
then, unless otherwise provided by the Board, no Awards shall be granted for the relevant
Plan Year.

     (b) In the event the Corporate Performance Factor is achieved in whole or in part (or
is waived by the Board), Awards shall be determined by the Committee as provided in this
article.

     4.2 Evaluation of Participants and Determination of Awards. In the event Awards are
to be paid for a Plan Year, the CEO shall cause each Participant’s Individual Performance Factor to
be determined and applied by taking into account (i) the Leadership Performance Matrix in effect
for such year, which Matrix shall be attached from time to time as an appendix, or a replacement
appendix, to the Plan document, and (ii) the incentive ranges for such year, which shall be
attached from time to time as an appendix, or a replacement appendix, to the Plan document. The
determinations made shall initially be

3

 

 made under the supervision of, and approved by, the CEO and,
upon such approval, shall be subject to the further approval of the Committee. For Plan Years with respect to which the Corporate
Performance Factor is achieved (or otherwise waived), the maximum number of Employee-Participants
in Grades 8 and 9 in such year receiving Awards will not normally exceed 30% of the number of such
individuals.

     4.3 Additional Awards. A Participant may be granted an additional Award above the
amount determined pursuant to Section 4.2 if, in the judgment of the CEO and with the concurrence
of the Committee, such Participant has rendered extraordinary performance during the Plan Year.

     4.4 Form of Awards. Awards for a Plan Year shall be in such form as the Committee
shall specify and the Board shall approve. Except as otherwise provided by the Board or the
Committee at any relevant time, in the event a dual Corporate Performance Factor is specified,
whereby two earnings-per-share thresholds are targeted, if: (i) only the lower threshold is
achieved, all Awards shall be distributed in cash, and (ii) the higher threshold is achieved,
Awards shall be distributed partially in cash and partially in Restricted Common Stock (or wholly
in cash to selected persons). Where relevant, distributions in the form of Restricted Common Stock
shall be made with reference to the value of such stock on the applicable Valuation Date.

     4.5 Timing of Award Distributions. The determination and distribution of any Awards
payable with respect to a Plan Year shall be made as soon as administratively feasible following
the availability of financial information for such year; provided, however, that the Committee
shall distribute any portion of an Award distributable in cash no later than March 15th of the year
immediately following the relevant Plan Year.

     4.6 Certain Participation, Service and Distribution Rules.

     (a) Except as otherwise provided herein, no Participant shall be entitled to an Award
for any Plan Year unless he or she is an Employee on both the last day of such year and the
date on which Awards are paid for such year.

     (b) In the case of a Participant whose employment terminates during a Plan Year, but
after July 1st of such year, by reason of his or her death, Disability or Retirement (as
such terms are then defined in the Sovereign Bancorp, Inc. Retirement Plan or, if not then
so defined, as otherwise defined by the Committee), a prorated Award may, in the Committee’s
sole discretion, be granted to or with respect to such Participant. In the case of any
Participant who terminates employment as described in the preceding sentence after the close
of a Plan Year, but before Awards for such year are paid, a full or pro rated Award may, in
the Committee’s sole discretion, be granted to or with respect to such Participant.

     (c) No Employee shall be approved as a Participant for a Plan Year if his or her
employment commences after September 30th of such year. In the case of an Employee who
commences employment or is promoted to an Award-eligible position prior to October 1st of a
Plan Year and who is approved as a Participant for such year, any Award granted to him or
her for such year shall be prorated, as the Committee shall determine.

     (d) In the case of a Participant who is a part-time Employee during all or any portion
of a Plan Year, any Award granted to him or her for such year shall be pro rated, as the
Committee shall determine.

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     (e) In the case of a Participant who is on a leave of absence for less than three
months during a Plan Year, any Award determined with respect to him or her may, at the
Committee’s discretion, be payable without being pro rated. In the case of a Participant
who is on a leave of absence for at least three, but less than 12, months, any Award granted
to him or her shall be pro rated.

     (f) Notwithstanding anything herein to the contrary, any Award declared but remaining
undistributed may be temporarily or permanently withheld from a Participant if adverse or
other special circumstances exist which, in the judgment of the Committee, justify such
action with respect to him or her.

     (g) The transfer of a Participant’s employment between and among the Corporation and
its Subsidiaries shall not be deemed a termination of employment, but, unless otherwise
provided by the Committee, a transaction pursuant to which a Subsidiary ceases to qualify as
such shall constitute a termination of employment of all of such former Subsidiary’s
Employees.

     (h) The payment of any Award, with respect to a deceased Participant, shall be made to
his or her surviving spouse or, if there is no such person at the time of distribution, to
the decedent’s estate.

ARTICLE 5 — MISCELLANEOUS PROVISIONS

     5.1 Effective Date. The effective date of this amended and restated Plan is as of
January 1, 2006.

     5.2 Amendment, Modification, Suspension, Reinstatement or Termination of the Plan.
The Corporation reserves the right, by action of the Board, to amend, modify, suspend, reinstate or
terminate the Plan at any time and from time to time, including during any Plan Year with
retroactive effect. Any such action shall be communicated to Participants in writing by the
Committee as soon as administratively feasible.

     5.3 No Assurance of Entitlement to Award. Participation in the Plan shall not confer
upon any Participant the right to an Award, regardless of the satisfaction of any Corporate
Performance Factor or achievement of any level of individual performance. Any Award granted (or
not granted) under the Plan is subject to the absolute discretion of the CEO and the Committee.

     5.4 No Assurance as to Continued Employment. Participation in the Plan shall not
confer upon any Participant the right to continue in the employ of the Corporation or any
Subsidiary or limit in any respect the right of the Corporation or any Subsidiary to terminate a
Participant’s employment at any time and for any reason.

     5.5 Withholding. The distribution of each Award hereunder (and the vesting in, or
other taxable event occurring with respect to, any Restricted Common Stock) shall be subject to
such federal, state and local income tax withholding as may be required by law. Where relevant,
the Corporation may require, as a condition of the distribution of an Award, that a Participant
make appropriate arrangements for the deposit of sufficient cash with the Corporation to satisfy
any tax withholding requirement.

     5.6 Obligation of Employer. The obligation to distribute an Award granted to a
Participant shall be an obligation to such Participant of his or her primary employer at the close
of a relevant Plan Year.

5

 

Notwithstanding the preceding sentence, the Corporation and its Subsidiaries may allocate the
cost of Awards, as between and among themselves, as they may agree.

     5.7 Source of Shares. Except as otherwise required by law or the rules and
regulations of any exchange on which the Common Stock is listed, shares of Restricted Common Stock
distributable under the Plan may be (i) authorized but previously unissued shares or (ii) treasury
shares acquired by purchase or otherwise.

     5.8 Gender; Number. Words of one gender, wherever used herein, shall be construed to
include each other gender, as the context requires. Words used herein in the singular form shall
include the plural form, as the context requires, and vice versa.

     5.9 Applicable Law. Except to the extent preempted by federal law, this Plan document
shall be construed, administered and enforced in accordance with the domestic internal law of the
Commonwealth of Pennsylvania.

     5.10 Headings. The headings of the several articles and sections of this Plan
document have been inserted for convenience of reference only and shall not be used in the
construction of the same.

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EXHIBIT

CORPORATE PERFORMANCE FACTOR FOR 2006 PLAN YEAR

[The Corporate Performance Factor for the 2006 Plan Year is the attainment by the Corporation

for calendar year 2006 of certain operating and cash earnings per share goals.]

Approval

This Plan as amended and restated has been approved by the Board of Directors on February 15, 2006.

	 	 	 	 	 
	/s/ Jay S. Sidhu	 	 	 	/s/ Cheryl Patnick
	Jay S.
Sidhu

	 	Approval As Noted Above
	 	Cheryl Patnick
	Chairman, President & CEO

	 	Board of Directors
	 	EVP, Managing Director Team Member
	Sovereign Bancorp,Inc.

	 	02/15/06
	 	Services
	02/15/06

	 	 
	 	Sovereign Bancorp, Inc.
	 

	 	 
	 	02/15/06

7

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