Document:

Monogram Biosciences, Inc. 3% Senior Secured Convertible Note

 Exhibit 10.2 
 THIS PROMISSORY NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”). NO SALE OR DISPOSITION OF THIS PROMISSORY NOTE OR THE SECURITIES INTO WHICH THIS PROMISSORY NOTE IS CONVERTIBLE MAY BE
EFFECTED EXCEPT IN COMPLIANCE WITH RULE 144 UNDER THE ACT, PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO, FOLLOWING RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL FOR THE HOLDER, REASONABLY SATISFACTORY TO THE COMPANY, THAT SUCH
REGISTRATION IS NOT REQUIRED UNDER THE ACT, OR FOLLOWING RECEIPT BY THE COMPANY OF A NO-ACTION LETTER FROM THE SECURITIES AND EXCHANGE COMMISSION THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE ACT. 
 MONOGRAM BIOSCIENCES, INC. 
 3.0%
SENIOR SECURED CONVERTIBLE NOTE DUE MAY 19, 2010 
 Monogram Biosciences, Inc., a Delaware corporation (the “Company”,
which term shall include any successor thereto), promises to pay to Pfizer Inc. (the “Holder”, which term shall include any successor thereto or permitted transferee thereof) in cash, the principal sum of Twenty-Five Million Dollars
($25,000,000) on May 19, 2010 or such earlier date as may be provided herein, with simple interest on the outstanding principal amount at the rate of 3% per annum. 
 This Note and the Common Stock issuable upon conversion of this Note (collectively, the “Securities”) are being offered and sold by the
Company pursuant to a Purchase Agreement, dated May 5, 2006 (the “Purchase Agreement”), among the Company and the Holder, in a transaction exempt from, or not subject to, the registration requirements of the Securities Act of
1933, as amended (the “Securities Act”). 
 1. INTEREST 
 The Company promises to pay interest on the principal amount of this Note at the rate of 3.0% per annum. The Company shall pay interest quarterly on March 31, June 30, September 30 and
December 31 of each year (each an “Interest Payment”), commencing June 30, 2006. Interest on this Note shall accrue from the most recent date to which interest has been paid or, if no interest has been paid, from
May 19, 2006. Interest will be computed on the basis of a 365-day year for the actual number of days elapsed. The Company shall pay interest on this Note (except defaulted interest) to the Holder at the close of business on the Business Day (as
hereinafter defined) immediately following the related interest payment date. 
 The Company may make the Interest Payment at its option,
either in cash or Common Stock (or a combination of cash and Common Stock); provided, however, that payment of any Interest 

  

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Payment may not be made in shares of Common Stock, in whole or in part, unless (i) the shares of Common Stock to be issued in payment of each Interest
Payment are (A) listed or quoted as of the date of the payment of each Interest Payment on a national securities exchange or on the Nasdaq National Market and (B) upon issuance, shall be capable of immediate resale to the public pursuant
to an effective registration statement at the time of issuance (without any Suspension Period (as defined in the Purchase Agreement) then in effect) or pursuant to Rule 144(k) if such registration statement is no longer required to be in effect
under the Purchase Agreement; (ii) all shares of Common Stock that may be issued in payment of each Interest Payment shall be newly issued, shall, upon issue, be duly authorized, validly issued, fully paid and non-assessable and shall be free
from preemptive or similar rights and free of any lien or adverse claim; and (iii) any required corporate approvals or authorizations, including without limitation any approval by the Company’s stockholders as may be required under the
Marketplace Rules of The Nasdaq Stock Market, Inc., shall have been obtained prior to the issuance of such shares of Common Stock. Payments made in Common Stock will be valued at 90% of the average of the Closing Prices (as hereinafter defined) of
the Common Stock for the five consecutive Trading Days (as hereinafter defined) ending on the Trading Day immediately preceding the date of the applicable Interest Payment; and provided further that any accrued and unpaid interest shall be
paid concurrently with the repayment of the outstanding principal balance of the Note and shall be paid in cash. 
 “Adjustment
Event” has the meaning specified in Section 7(k). 
 “Affiliate” means with respect to any specified Person
any other Person that controls, is controlled by or is under common control with such specified Person. For the purposes of this definition, “control”, when used with respect to any specified Person, means the actual power, either directly
or indirectly through one or more intermediaries, to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise, and the terms “controlled by”
and “under common control with” have meanings correlative to the foregoing. 
 “Board of Directors” means the
Board of Directors of the Company or a committee of such Board duly authorized to act for it hereunder. 
 “Business Day”
means each day that is not a Legal Holiday. 
 “Collaboration Agreement” means the Collaboration Agreement, dated
May 5, 2006, between the Company and Holder, as amended from time to time. 
 “Collaboration Security Agreement” means
the Collaboration Security Agreement, dated as of May 5, 2006, between the Company and Holder, as amended from time to time. 
 “Collateral” has the meaning assigned to it in the Security Agreement. 
 “Current Market Price”
has the meaning specified in Section 7(g). 
 “Determination Date” has the meaning specified in Section 7(k).

 “Distributed Property” has the meaning specified in Section 7(d). 
  

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 “Ex-Dividend Date” has the meaning specified in Section 7(d). 
 “Expiration Time” has the meaning specified in Section 7(f). 
 “Fair Market Value” has the meaning specified in Section 7(g). 
 “Indebtedness” means, with respect to any Person, and without duplication, 
 (i) all indebtedness, obligations and other liabilities (contingent or otherwise) of such Person for borrowed money (including obligations of the Person
in respect of overdrafts, foreign exchange contracts, commodity contracts, currency exchange agreements, interest rate protection agreements and any loans or advances from banks, whether or not evidenced by notes or similar instruments) or evidenced
by bonds, debentures, notes or similar instruments (whether or not the recourse of the lender is to the whole of the assets of such Person or to only a portion thereof), other than any current account payable or other accrued current liability or
obligation to trade creditors incurred in the ordinary course of business in connection with the obtaining of materials or services; 
 (ii)
all reimbursement obligations and other liabilities (contingent or otherwise) of such Person with respect to letters of credit, bank guarantees or bankers’ acceptances; 
 (iii) all obligations and liabilities (contingent or otherwise) in respect of leases of such Person required, in conformity with generally accepted
accounting principles, to be accounted for as capital lease obligations on the balance sheet of such Person and all obligations and other liabilities (contingent or otherwise) under any lease or related document (including a purchase agreement) in
connection with the lease of real property or personal property or assets which provides that such Person is contractually obligated to purchase or cause a third party to purchase the leased property or assets and thereby guarantee a minimum
residual value of the leased property or assets to the lessor and the obligations of such Person under such lease or related document to purchase or to cause a third party to purchase such leased property or assets; 
 (iv) all obligations of such Person (contingent or otherwise) with respect to an interest rate or other swap, cap or collar agreement or other similar
instrument or agreement or foreign currency hedge, exchange, purchase or similar instrument or agreement; 
 (v) all direct or indirect
guarantees or similar agreements by such Person in respect of, and obligations or liabilities (contingent or otherwise) of such Person to purchase or otherwise acquire or otherwise assure a creditor against loss in respect of, indebtedness,
obligations or liabilities of another Person of the kind described in clauses (i) through (iv); 
 (vi) any indebtedness or other
obligations described in clauses (i) through (v) secured by any mortgage, pledge, lien or other encumbrance existing on property that is owned or held by such Person, regardless of whether the indebtedness or other obligation secured
thereby shall have been assumed by such Person; and 
 (vii) any and all deferrals, renewals, extensions and refundings of, or amendments,
modifications or supplements to, any indebtedness, obligation or liability of the kind or type described in clauses (i) through (vi). 
  

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 “Legal Holiday” is a Saturday, Sunday or a day on which state or federally chartered
banking institutions in New York, New York are not required to be open. 
 “Lien” means any security interest, pledge,
mortgage, lien (statutory or other), charge, option to purchase, lease or otherwise acquire any interest or any claim, restriction, covenant, title defect, hypothecation, assignment, deposit arrangement or any preference, priority or other security
agreement (including any conditional sale or other title retention agreement and the filing of, or agreement to give, any financing statement under the Uniform Commercial Code of any applicable jurisdiction). 
 “Master Services Agreement” means the Master Services Agreement, dated as of November 14, 2002, between the Company and Holder, as
amended from time to time. 
 “Person” means an individual, corporation, partnership, limited liability company,
association, trust or other entity or organization, including a government or political subdivision or an agency or instrumentality thereof. 
 “Secured Property” means the properties and assets of the Company subject to a security interest pursuant to the Security Agreement. 
 “Security Agreement” has the meaning assigned to it in Article 3. 
 “Subsidiary” means as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock or other ownership interests having ordinary voting power (other than stock or such other
ownership interests having such power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other entity are at the time owned, or the management of
which is otherwise controlled, directly or indirectly through one or more intermediaries, or both, by such Person. 
 “Trading
Day” has the meaning specified in Section 7(g). 
 “Trigger Event” has the meaning specified in
Section 7(d). 
 The “Closing Price” per share of Common Stock for each day shall be the last reported sales price or,
in case no such reported sale take place on such date, the average of the reported closing bid and asked prices in either case on the Nasdaq National Market or, if the Common Stock is not listed or admitted to trading on the Nasdaq National Market,
on the principal national securities exchange on which the Common Stock is listed or admitted to trading or, if not listed or admitted to trading on the Nasdaq National Market or any national securities exchange, the average of the closing bid and
asked prices as quoted on NASDAQ or any comparable system or, if the Common Stock is not quoted on NASDAQ or any comparable system, the closing sales price or, in case no reported sale takes place, the average of the closing bid and asked prices, as
furnished by any two members of the National Association of Securities Dealers, Inc. selected from time to time by the Company for that purpose. 
  

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 2. METHOD OF PAYMENT 
 The Holder must surrender this Note to the Company to collect payment of principal. The Company will pay principal and interest in money of the United States that at the time of payment is legal tender for payment of
public and private debts. 
 3. SECURED OBLIGATION 
 The indebtedness evidenced by this Note is secured pursuant to a Note Security Agreement, dated as of May 5, 2006 (as amended from time to time, the “Security Agreement”), by and among the
Company and the Holder, pursuant to which the Company has granted Holder a security interest in all of the Collateral. 
 4. REDEMPTION 
 The Note cannot be redeemed by the Company before May 19, 2010 (other than at the option of the Holder as provided herein). 
 5. PURCHASE OF NOTE AT OPTION OF HOLDER 
 (a) At the
option of the Holder, the Company shall become obligated to purchase all or any part (so long as the principal amount of such part is $1,000 or an integral multiple of $1,000 in excess thereof) of this Note specified by the Holder on the Fundamental
Change Purchase Date (as defined below), at a purchase price equal to 100% of the principal amount thereof together with accrued and unpaid interest to, but excluding, the Fundamental Change Purchase Date (the “Fundamental Change Purchase
Price”), subject to satisfaction by or on behalf of the Holder of the requirements set forth in subsection (d) of this Section 5. 
 (b) A “Change in Control” shall be deemed to have occurred if any of the following occurs after the date hereof: 
 (1) the Company consolidates with or merges with or into a “Designated Entity” (as such term is defined below) or a wholly-owned subsidiary of a Designated Entity; or 
 (2) any “Major Pharmaceutical Company” (as such term is defined below) is or becomes the “beneficial owner” (as defined below),
directly or indirectly, of shares of capital of the Company representing more than 50% of the total voting power of all outstanding classes of capital stock of the Company; or 
 (3) the Company sells, assigns, conveys, transfers, leases or otherwise disposes of all or substantially all of the assets of the Company to a Designated
Entity. 
 “Beneficial owner” shall be determined in accordance with Rule 13d-3 under the Exchange Act, as in effect on
the date of this Note, except that the number of shares of capital stock of the Company shall be deemed to include, in addition to all outstanding shares of capital stock of the Company and Unissued Shares deemed to be held by the “person”
or “group” (as such terms are defined above) or other Person with respect to which the Change in Control determination is being made, all Unissued Shares deemed to be held by all other Persons 
  

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 “Debt-to-Equity-Ratio” means the ratio of (a) aggregate Indebtedness of an entity
to (b) the stockholders’ equity of that entity (determined in accordance with GAAP). 
 A “Fundamental Change”
shall be deemed to have occurred upon the occurrence of either a Change in Control or a Termination of Trading. 
 A “Termination of
Trading” shall be deemed to have occurred if, after the date hereof, the Common Stock (or other common stock into which the Securities are then convertible) is not listed for trading on a United States national securities exchange, quoted
on the Nasdaq National Market, or approved for trading and/or eligible for quotation on an established automated over-the-counter trading market in the United States, including the OTC Bulletin Board, but excluding the “pink sheets” or any
similar quotation system. 
 The term “Designated Entity” means (i) any Person having, on a consolidated basis and
measured pro forma for the completion of the Change in Control transaction as of the date on which the Change in Control is consummated, (A) stockholders equity determined in accordance with GAAP of less than $43,127,000 or (B) a
Debt-to-Equity-Ratio greater than 1.5:1 or (ii) a Major Pharmaceutical Company. 
 “GAAP” means generally accepted
accounting principles in the United States of America as in effect from time to time. 
 “Major Pharmaceutical Company”
means (A) a pharmaceutical or biotechnology company (excluding Holder or any Affiliates of Holder) (x) whose worldwide net sales on a consolidated basis of human pharmaceutical products, including consumer over-the-counter pharmaceutical
products in the most recently completed fiscal year for which audited financial statements are publicly available at the time such Change in Control occurs, total $1,000,000,000 or more, as reported in such financial statements, or if such
information is not publicly available, as reasonably calculated and provided by the Company, or (y) whose worldwide net sales on a consolidated basis of human pharmaceutical products approved for the treatment of HIV in the most recently
completed fiscal year for which audited financial statements are publicly available at the time such Change in Control occurs, or if such information is not publicly available, as reasonably calculated and provided by the Company, is in excess of
$100,000,000 or (B) any one or more Persons which are direct or indirect parent holding companies of a Person identified in clause (A) or is an Affiliate of a Person identified in clause (A). 
 The term “Unissued Shares” means shares of capital stock not outstanding that are subject to options, warrants, rights to purchase or
conversion privileges exercisable within 60 days of the date of determination of a Change in Control. 
 (c) Upon (i) the earlier
of public announcement of any transaction, that if consummated, would result in a Change in Control or the date on which a Change in Control occurs, or (i) in the case of a Termination of Trading, within 5 days of such termination, the Company
shall mail a written notice of the Change in Control or Termination of Trading, as applicable, to the Holder. The notice shall include the form of a Fundamental Change Purchase Notice to be completed by the Holder and shall state: 
 (1) the actual or anticipated date of such Fundamental Change and, briefly, the events causing such Change in Control; 
  

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 (2) the date by which the Fundamental Change Purchase Notice pursuant to this Section 5 must be
given; 
 (3) the Fundamental Change Purchase Date; and 
 (4) the Fundamental Change Purchase Price. 
 (d) The Holder may exercise its rights specified in
subsection (a) of this Section 5 upon delivery of a written notice in the form delivered by the Company pursuant to Section 5(c) (a “Fundamental Change Purchase Notice”) to the Company at any time prior to the close
of business on the Business Day next preceding the Fundamental Change Purchase Date. The “Fundamental Change Purchase Date” is the later of (i) the fifth business day following delivery of the notice contemplated by subsection
(c) of this Section 5 and (ii) in case of a Change in Control, the date on which the Change in Control occurs. The delivery of this Note to the Company (together with all necessary endorsements) at the office of the Company shall be a
condition to the receipt by the Holder of the Fundamental Change Purchase Price therefor. 
 6. CONVERSION 
 (a) Subject to the second proviso of this Section 6(a), the Holder may convert the principal amount of and any accrued but unpaid interest on this
Note (or any portion thereof equal to $1,000 or any integral multiple of $1,000 in excess thereof) into shares of Common Stock at any time prior to the close of business on May 19, 2010, at the Conversion Price (as defined below) then in
effect; provided, however, that if the Note is subject to purchase upon a Change in Control, the conversion right will terminate at the close of business on the business day immediately preceding the Change in Control Purchase Date for the
Note or such earlier date as the Holder presents the Note for purchase (unless the Company shall default in paying the Change in Control Purchase Price when due, in which case, without limiting any other rights of the Holder, the conversion right
shall terminate at the close of business on the date such default is cured and the Note is purchased); provided further that if any limitation imposed by the Nasdaq Marketplace Rules would prevent the Company from issuing the full number of
shares of Common Stock issuable upon such conversion, then the portion of the principal amount of and any accrued but unpaid interest on this Note for which such conversion right has been exercised, the conversion of which would exceed such
limitation, shall be repaid in accordance with the terms hereof or, at the written election of the Holder, shall instead be treated as an advance of monies then-owed or thereafter owing to the Company by the Holder under the Master Services
Agreement or the Collaboration Agreement and shall thereby reduce the obligations of the Holder thereunder by the amount that is deemed advanced. Upon conversion of any portion of the principal amount of this Note, or Holder’s election to treat
such as an advance of monies under the Master Services Agreement or the Collaboration Agreement, the Company shall be forever released from all its obligations and liabilities under this Note with respect to such amount. 
 (b) Following the registration of the shares of Common Stock issuable upon conversion of this Note pursuant to Section 10 of the Purchase Agreement
pursuant to an effective registration statement, the outstanding principal and accrued interest due under this Note shall automatically convert into shares of the Company’s Common Stock at the Conversion Price on the Trading Day immediately
following any period in which the Closing Price is equal to or greater than 150% of the Conversion Price (as such amount shall be adjusted in the same manner as the Conversion Price shall be adjusted as provided in this Note) for 20 out of 30
consecutive Trading Days. 
  

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 (c) The initial conversion price is $2.7048 per share, subject to adjustment under certain circumstances
as provided in this Note (as adjusted, the “Conversion Price”). The number of shares of Common Stock issuable upon conversion of this Note is determined by dividing the principal amount of this Note, or portion thereof surrendered
for conversion, together with any accrued interest due thereunder, by the Conversion Price in effect on the Conversion Date (as defined below). No fractional shares will be issued upon conversion; in lieu thereof, the Company will pay to the Holder
in cash the amount that would have otherwise been converted into such fractional share. Immediately following the Conversion Date, the Company shall deliver to the Holder a certificate for the number of whole shares of Common Stock issuable upon
conversion of this Note. 
 (d) The Holder must (i) complete and manually sign the conversion notice attached to this Note and deliver
such notice to the Company, (ii) surrender the Note, duly endorsed, to the Company, and (iii) pay any transfer or similar tax, if required. The date on which the Holder satisfies all of the foregoing requirements shall be the
“Conversion Date.” 
 (e) The Note or portion thereof in respect of which a Change in Control Purchase Notice has been given
by the Holder may not be converted into shares of Common Stock pursuant to this Section 6 on or after the date of the delivery of such Change in Control Purchase Notice unless such Change in Control Purchase Notice has first been validly
withdrawn. 
 7. ADJUSTMENT OF CONVERSION PRICE 
 The Conversion Price shall be adjusted from time to time by the Company as follows: 
 (a) In case the Company shall hereafter pay a
dividend or make a distribution to all holders of the outstanding shares of Common Stock in shares of Common Stock, the Conversion Price shall be reduced so that the same shall equal the price determined by dividing the Conversion Price in effect at
the opening of business on the date following the Record Date for such dividend or distribution by a fraction, 
 (i) the numerator of which
shall be the sum of the number of shares of Common Stock outstanding at the close of business on such Record Date plus the total number of shares of Common Stock constituting such dividend or other distribution; and 
 (ii) the denominator of which shall be the a number of shares of Common Stock outstanding at the close of business on such Record Date, 
 such decrease to become effective immediately after the opening of business on the day following such Record Date. If any dividend or distribution of the
type described in this Section 7(a) is declared but ultimately not so paid or made, the Conversion Price shall again be adjusted to the Conversion Price that would then be in effect if such dividend or distribution had not been declared.

 (b) In case the Company shall issue rights or warrants to all holders of its outstanding shares of Common Stock entitling them (for a
period expiring within forty-five (45) days after the Record Date for the issuance of such rights and warrants) to subscribe for or purchase shares of Common Stock at a price per share less than the average of the Closing Sale Prices of the
Common Stock for the ten (10) Trading Days immediately preceding the date such distribution is first publicly announced by the Company (other than any rights or warrants referred to in Section 7(d) or Rights 

  

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(as defined in Section 7(d)) distributed pursuant to a Rights Plan (as defined in Section 7(d))), the Conversion Price shall be reduced so that the
same shall equal the price determined by dividing the Conversion Price in effect immediately prior to such Record Date by a fraction, 
 (i)
the numerator of which shall be the number of shares of Common Stock outstanding on such Record Date plus the total number of additional shares of Common Stock offered for subscription or purchase, and 
 (ii) the denominator of which shall be the sum of the number of shares of Common Stock outstanding at the close of business on such Record Date plus the
number of shares that the aggregate offering price of the total number of shares so offered would purchase at a price equal to the average of the Closing Sale Prices of the Common Stock for the ten (10) Trading Days immediately preceding the
date such distribution is first publicly announced by the Company. 
 Such adjustment shall be successively made whenever any such rights or
warrants are issued, and shall become effective immediately after the opening of business on the day following the Record Date for the issuance of such rights or warrants. To the extent that shares of Common Stock ultimately are not delivered after
the expiration of such rights or warrants, the Conversion Price shall be readjusted to the Conversion Price that would then be in effect had the adjustments made upon the issuance of such rights or warrants been made on the basis of delivery of only
the number of shares of Common Stock actually delivered. If such rights or warrants ultimately are not so issued, the Conversion Price shall again be adjusted to be the Conversion Price that would then be in effect if such Record Date had not been
fixed. In determining whether any rights or warrants entitle the holders to subscribe for or purchase shares of Common Stock at a price less than the average of the Closing Sale Prices of the Common Stock for the ten (10) Trading Days
immediately preceding the date such distribution is first publicly announced by the Company, and in determining the aggregate offering price of such shares of Common Stock, there shall be taken into account any consideration received by the Company
for such rights or warrants and any amount payable on exercise or conversion thereof, the value of such consideration, if other than cash, to be determined by the Board of Directors with the consent of the Holder (not to be unreasonably withheld).

 (c) In case outstanding shares of Common Stock shall be subdivided into a greater number of shares of Common Stock, the Conversion Price
in effect at the opening of business on the day following the day upon which such subdivision becomes effective shall be proportionately reduced, and conversely, in case outstanding shares of Common Stock shall be combined into a smaller number of
shares of Common Stock, the Conversion Price in effect at the opening of business on the day following the day upon which such combination becomes effective shall be proportionately increased, such reduction or increase, as the case may be, to
become effective immediately after the opening of business on the day following the day upon which such subdivision or combination becomes effective. 
 (d) In case the Company shall, by dividend or otherwise, distribute to all holders of its Common Stock shares of any class of capital stock of the Company or evidence of its indebtedness or assets (including cash or
securities, but excluding any rights or warrants referred to in Section 7(b) and also excluding the distribution of rights to all holders of Common Stock pursuant to a Rights Plan (as defined below) adopted before or after the date of this
Note, and excluding any 

  

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dividend or distribution (x) paid exclusively in cash or (y) referred to in Section 7(a) (any of the foregoing hereinafter in this
Section 7(d) called the “Distributed Property”), then, in each such case (unless the Company elects to reserve such Distributed Property for distribution to the Holder upon the conversion of this Note so that the Holder will
receive upon conversion, in addition to the shares of Common Stock to which the Holder is entitled, the amount and kind of such Distributed Property which the Holder would have received if the Holder had converted this Note into Common Stock
immediately prior to the Record Date for such distribution of the Distributed Property) the Conversion Price shall be reduced so that the same shall be equal to the price determined by dividing the Conversion Price in of in effect on the Record Date
with respect to such distribution by a fraction, 
 (i) the numerator of which shall be the Current Market Price on such Record Date; and

 (ii) the denominator of which shall be the Current Market Price on such Record Date less the Fair Market Value (in each case, for purposes
of this Note, as determined by the Board of Directors with the consent of the Holder (which shall not be unreasonably withheld), whose determination in the case of the Company shall be described in a resolution of the Board of Directors) on such
Record Date of the portion of the Distributed Property so distributed applicable to one share of Common Stock, 
 such adjustment to become
effective immediately prior to the opening of business on the day following such Record Date; provided that if the then Fair Market Value (as so determined) of the portion of the Distributed Property so distributed applicable to one share of Common
Stock is equal to or greater than the Current Market Price on such Record Date, in lieu of the foregoing adjustment, adequate provision shall be made so that the Holder shall have the right to receive upon conversion the amount of Distributed
Property the Holder would have received had the Holder converted this Note on the Record Date for such distribution. If such dividend or distribution ultimately is not so paid or made, the Conversion Price shall again be adjusted to be the
Conversion Price that would then be in effect if such dividend or distribution had not been declared. If the Board of Directors determines the Fair Market Value of any distribution for purposes of this Section 7(d) by reference to the actual or
when issued trading market for any securities, it must in doing so consider the prices in such market over the same period used in computing the Current Market Price on the applicable Record Date for such distribution. Notwithstanding the foregoing,
if the Distributed Property distributed by the Company to all holders of its Common Stock consist of capital stock of, or similar equity interests in, a Subsidiary or other business unit of the Company or a Subsidiary, the Conversion Price shall be
reduced so that the same shall be equal to the price determined by dividing the Conversion Price in effect on the Record Date with respect to such distribution by a fraction, 
 (i) the numerator of which shall be the sum of (A) the average of the Closing Sale Prices of the Common Stock for the ten (10) Trading Days
commencing on and including the fifth Trading Day after the date on which “ex-dividend trading” commences for such dividend or distribution on the Nasdaq National Market or such other national or regional exchange or market on which such
securities are then listed or quoted (the “Ex-Dividend Date”) plus (B) the Fair Market Value of the securities distributed in respect of each share of Common Stock for which this Section 7(d) applies, which shall equal the number
of securities distributed in respect of each share of Common Stock 

  

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multiplied by the average of the Closing Sale Prices of those securities distributed for the ten (10) Trading Days commencing on and including the fifth
Trading Day after the Ex-Dividend Date; and 
 (ii) the denominator of which shall be the average of the Closing Sale Prices of the Common
Stock for the ten (10) Trading Days commencing on and including the fifth Trading Day after the Ex-Dividend Date, 
 such adjustment to
become effective immediately prior to the opening of business on the day following such Record Date; provided that the Company may in lieu of the foregoing adjustment make adequate provision so that the Holder shall have the right to receive upon
conversion the amount of Distributed Property the Holder would have received had the Holder converted this Note on the Record Date with respect to such distribution. 
 With respect to any rights (the “Rights”) that may be issued or distributed pursuant to any preferred stock rights plan implemented by the Company (any existing or future preferred shares rights plan
or similar rights plan, a “Rights Plan”), upon conversion of this Note into Common Stock, to the extent that such Rights Plan has been implemented and is still in effect upon such conversion, the Holder will receive, in addition to
the Common Stock, the Rights described therein (whether or not the Rights have separated from the Common Stock at the time of conversion), subject to the limitations set forth in any such Rights Plan. Any distribution of Rights pursuant to a Rights
Plan complying with the requirements set forth in the immediately preceding sentence of this paragraph shall not constitute a distribution of rights or warrants pursuant to this Section 7(d) but, if not so compliant, shall constitute such a
distribution. Other than as specified in this paragraph, there will not be any adjustment to the Conversion Price as the result of the issuance of any Rights, the distribution of separate certificates representing such Rights, the exercise or
redemption of such Rights in accordance with any Rights Plan or the termination or invalidation of any Rights. 
 Rights or warrants (other
than rights issued pursuant to a Rights Plan) distributed by the Company to all holders of Common Stock entitling the holders thereof to subscribe for or purchase shares of the Company’s capital stock (either initially or under certain
circumstances), which rights or warrants, until the occurrence of a specified event or events (“Trigger Event”): (i) are deemed to be transferred with such shares of Common Stock, (ii) are not exercisable, and
(iii) are also issued in respect of future issuances of Common Stock, shall be deemed not to have been distributed for purposes of this Section 7 (and no adjustment to the Conversion Price under this Section 7 will be required) until
the occurrence of the earliest Trigger Event, whereupon such rights and warrants shall be deemed to have been distributed and an appropriate adjustment (if any is required) to the Conversion Price shall be made under this Section 7(d). If any
such right or warrant, including any such existing rights or warrants distributed prior to the date of this Note, are subject to events, upon the occurrence of which such rights or warrants become exercisable to purchase different securities,
evidences of indebtedness or other assets, then the date of the occurrence of any and each such event shall be deemed to be the date of distribution and Record Date with respect to new rights or warrants with such rights (and a termination or
expiration of the existing rights or warrants without exercise by any of the holders thereof). In addition, in the event of any distribution (or deemed distribution) of rights or warrants, or any Trigger Event or other event (of the type described
in the preceding sentence) with respect thereto that was counted for purposes of calculating a distribution amount for which an adjustment to the Conversion Price under this Section 7 was made, (1) in the case of any 

  

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such rights or warrants that shall all have been redeemed or repurchased without exercise by any holders thereof, the Conversion Price shall be readjusted
upon such final redemption or repurchase to give effect to such distribution or Trigger Event, as the case may be, as though it were a cash distribution, equal to the per share redemption or repurchase price received by a holder or holders of Common
Stock with respect to such rights or warrants (assuming such holder had retained such rights or warrants), made to all holders of Common Stock as of the date of such redemption or repurchase, and (2) in the case of such rights or warrants that
shall have expired or been terminated without exercise by any holders thereof, the Conversion Price shall be readjusted as if such rights and warrants had not been issued. 
 No adjustment of the Conversion Price shall be made pursuant to this Section 7(d) in respect of rights or warrants distributed or deemed distributed
on any Trigger Event to the extent that such rights or warrants are actually distributed or reserved by the Company for distribution to the Holder upon conversion by the Holder of this Note into Common Stock. 
 For purposes of this Section 7(d) and Sections 7(a) and (b), any dividend or distribution to which this Section 7(d) is applicable that also
includes shares of Common Stock, or rights or warrants to subscribe for or purchase shares of Common Stock (or both), shall be deemed instead to be (1) a dividend or distribution of the evidences of indebtedness, assets or shares of capital
stock other than such shares of Common Stock or rights or warrants (and any Conversion Price adjustment required by this Section 7(d) with respect to such dividend or distribution shall then be made) immediately followed by (2) a dividend
or distribution of such shares of Common Stock or such rights or warrants (and any further Conversion Price adjustment required by Sections 7(a) and 7(b) with respect to such dividend or distribution shall then be made), except any shares of Common
Stock included in such dividend or distribution shall not be deemed “outstanding at the close of business on such Record Date” within the meaning of Section 7(a). 
 (e) In case the Company shall, by dividend or otherwise, distribute to all holders of its Common Stock cash (excluding any dividend or distribution in
connection with the liquidation, dissolution or winding up of the Company, whether voluntary or involuntary), then, in such case, the Conversion Price shall be reduced so that the same shall equal the price determined by dividing the Conversion
Price in effect immediately prior to the close of business on the Record Date for such dividend or distribution by a fraction, 
 (i) the
numerator of which shall be the Current Market Price on such Record Date; and 
 (ii) the denominator of which shall be the Current Market
Price on such Record Date less the amount of cash so distributed applicable to one share of Common Stock, 
 such adjustment to be effective
immediately prior to the opening of business on the day following such Record Date; provided that if the portion of the cash so distributed applicable to one share of Common Stock is equal to or greater than the Current Market Price on such Record
Date, in lieu of the foregoing adjustment, adequate provision shall be made so that the Holder shall have the right to receive upon conversion the amount of cash the Holder would have received had the Holder converted this Note on the Record Date.
If such dividend or distribution is not so paid or made, such Conversion Price shall again be adjusted to be the Conversion Price that would then be in effect if such dividend or distribution had not been declared. 
  

 12 

 (f) In case a tender or exchange offer made by the Company or any Subsidiary for all or any portion of
the Common Stock shall expire and such tender or exchange offer (as amended upon the expiration thereof) shall require the payment to stockholders of consideration per share of Common Stock having a Fair Market Value (as determined as aforesaid)
that as of the last time (the “Expiration Time”) tenders or exchanges may be made pursuant to such tender or exchange offer (as it may be amended) exceeds the Closing Sale Price of a share of Common Stock on the Trading Day next
succeeding the Expiration Time, the Conversion Price shall be reduced so that the same shall equal the price determined by dividing the Conversion Price in effect immediately prior to the Expiration Time by a fraction, 
 (i) the numerator of which shall be the sum of (x) the Fair Market Value (determined as aforesaid) of the aggregate consideration payable to
stockholders based on the acceptance (up to any maximum specified in the terms of the tender or exchange offer) of all shares validly tendered or exchanged and not withdrawn as of the Expiration Time (the shares deemed so accepted up to any such
maximum, being referred to as the “Purchased Shares”) a (y) the product of the number of shares of Common Stock outstanding (less any Purchased Shares) at the Expiration Time and the Closing Sale Price of a share of Common
Stock on the Trading Day next succeeding the Expiration Time, and 
 (ii) the denominator of which shall be the number of shares of Common
Stock outstanding (including any Purchased Shares) at the Expiration Time multiplied by the Closing Sale Price of a share of Common Stock on the Trading Day next succeeding the Expiration Time. 
 such adjustment to become effective immediately prior to the opening of business on the day following the Expiration Time. If the Company is obligated to
purchase shares pursuant to any such tender or exchange offer, but the Company is permanently prevented by applicable law from effecting any such purchases or all such purchases are rescinded, the Conversion Price shall again be adjusted to be the
Conversion Price that would then be in effect if such tender or exchange offer had not been made. 
 (g) For purposes of this Section 7,
the following terms shall have the meaning indicated: 
 “Current Market Price” shall mean the average of the daily Closing
Sale Prices per share of Common Stock for the ten consecutive Trading Days ending not later than the earlier of such date of determination and the day before the “ex” date with respect to the issuance, distribution, subdivision or
combination requiring such computation immediately prior to the date in question. For purposes of this paragraph, the term “ex” date, (1) when used with respect to any issuance or distribution, means the first date on which the Common
Stock trades, regular way, on the relevant exchange or in the relevant market from which the Closing Sale Price was obtained without the right to receive such issuance or distribution, and (2) when used with respect to any subdivision or
combination of shares of Common Stock, means the first date on which the Common Stock trades, regular way, on such exchange or in such market after the time at which such subdivision or combination becomes effective. 
 If another issuance, distribution, subdivision or combination to which Section 7 applies occurs during the period applicable for calculating
“Current Market Price” pursuant to the definition in the preceding paragraph, “Current Market Price” shall be calculated for such period in a manner 

  

 13 

 
determined by the Board of Directors to reflect the impact of such issuance, distribution, subdivision or combination on the Closing Sale Price of the Common
Stock during such period with the consent of the Holder (which shall not be unreasonably withheld). 
 “Fair Market Value”
shall mean the amount which a willing buyer would pay a willing seller in an arm’s-length transaction. 
 “Record Date”
shall mean, with respect to any dividend, distribution or other transaction or event in which the holders of Common Stock have the right to receive any cash, securities or other property or in which the Common Stock (or other applicable security) is
exchanged for or converted into any combination of cash, securities or other property, the date fixed for determination of stockholders entitled to receive such cash, securities or other property (whether such date is fixed by the Board of Directors
or y statute, contract or otherwise). 
 “Trading Day” shall mean (x) if the applicable security is quoted on The
Nasdaq Stock Market, a day on which trades may be made thereon or (y) if the applicable security is listed or admitted for trading on the American Stock Exchange, New York Stock Exchange or another national securities exchange, a day on which
the American Stock Exchange, New York Stock Exchange or another national securities exchange is open for business or (z) if the applicable security is not so listed, admitted for trading or quoted, any day other than a Saturday or Sunday or a
day on which banking institutions in the State of New York are authorized or obligated by law or executive order to close. 
 (h) The Company
may make such reductions in the Conversion Price in addition to those required by Section 7(a), (b), (c), (d), (e) or (f) as the Board of Directors considers to be advisable to avoid or diminish any income tax to holders of Common
Stock or rights to purchase Common Stock resulting from any dividend or distribution of stock (or rights to acquire stock) or from any event treated as such for income tax purposes. 
 To the extent permitted by applicable law, the Company from time to time may reduce the Conversion Price by any amount for any period of time if the
Board of Directors shall have made a determination that such decrease would be in the best interests of the Company, which determination shall be conclusive. Whenever the Conversion Price is reduced pursuant to the preceding sentence, the Company
shall notify the Holder of such reduction, and such notice shall state the reduced Conversion Price and the period during which it will be in effect. 
 (i) No adjustment in the Conversion Price shall be required unless such adjustment would require an increase or decrease of at least one percent (1%) in such price; provided that any adjustments that by reason of
this Section 7(i) are not required to be made shall be carried forward and taken into account in any subsequent adjustment. All calculations under this Section 7 shall be made by the Company and shall be made to the nearest cent or to the
nearest one-ten thousandth (1/10,000) of a share, as the case may be. No adjustment need be made for rights to purchase Common Stock pursuant to a Company plan for reinvestment of dividends or interest or for any issuance of Common Stock or
convertible or exchangeable securities or rights to purchase Common Stock or convertible or exchangeable securities. To the extent this Note becomes convertible into cash, assets, property or securities (other than capital stock of the Company), no
adjustment need be made thereafter as to the cash, assets, property or such securities. Interest will not accrue on any cash into which this Note is convertible. 
  

 14 

 (j) Whenever the Conversion Price is adjusted as herein provided, the Company shall promptly notify the
Holder of the adjustment and provide the Holder with a notice setting forth the Conversion Price after such adjustment, the date of such adjustment, and a brief statement of the facts requiring such adjustment. Failure to deliver such notice shall
not affect the legality or validity of any such adjustment. 
 (k) In any case in which this Section 7 provides that an adjustment shall
become effective immediately after (1) a Record Date for an event, (2) the Record Date for a dividend or distribution described in Section 7(a), (3) the Record Date for the issuance of rights or warrants as described in
Section 7(b) or (4) the Expiration Time for any tender or exchange offer pursuant to Section 7(f) (each a “Determination Date”), the Company may elect to defer until the occurrence of the applicable Adjustment Event
(as hereinafter defined) (x) issuing to the Holder if this Note is converted after such Determination Date and before the occurrence of such Adjustment Event, the additional shares of Common Stock or other securities issuable upon such
conversion by reason of the adjustment required by such Adjustment Event over and above the Common Stock issuable upon such conversion before giving effect to such adjustment and (y) paying to the Holder any amount in cash in lieu of any
fraction pursuant to Section 6(c). For purposes of this Section 7(k), the term “Adjustment Event” shall mean: 
 (i) in any case referred to in clause (1) hereof, the occurrence of such event, 
 (ii) in any case referred to in clause
(2) hereof, the date any such dividend or distribution is paid or made, 
 (iii) in any case referred to in clause (3) hereof, the
date of expiration of such rights or warrants, and 
 (iv) in any case referred to in clause (4) hereof, the date a sale or exchange of
Common Stock pursuant to such tender or exchange consummated and becomes irrevocable. 
 (l) For purposes of this Section 7, the number
of shares of Common Stock at any time outstanding shall not include shares held in the treasury of the Company but shall include shares issuable in respect of scrip certificates issued in lieu of fractions of shares of Common Stock. The Company will
not pay any dividend or make any distribution on shares of Common Stock held in the treasury of the Company. 
 8. EFFECT OF RECLASSIFICATION,
CONSOLIDATION, MERGER OR SALE. 
 If any of the following events occur, namely (i) any reclassification or change of the outstanding
shares of Common Stock (other than a subdivision or combination to which Section 7(c) applies), (ii) any consolidation, merger or combination of the Company with another Person as a result of which holders of Common Stock shall be entitled
to receive stock, other securities or other property or assets (including cash) with respect to or in exchange for such Common Stock, or (iii) any sale or conveyance of all or substantially all of the properties and assets of the Company to any

  

 15 

 
other Person as a result of which holders of Common Stock shall be entitled to receive stock, other securities or other property or assets (including cash)
with respect to or in exchange for such Common Stock, then the Company or the successor or purchasing Person, as the case may be, shall execute and deliver to the Holder a supplemental instrument agreeing to be bound by all terms of this Note and
providing that this Note shall be convertible into the kind and amount of shares of stock, other securities or other property or assets (including cash) receivable upon such reclassification, change, consolidation, merger, combination, sale or
conveyance by a holder of a number of shares of Common Stock issuable upon conversion of this Note (assuming, for such purposes, a sufficient number of authorized shares of Common Stock are available to convert this Note) immediately prior to such
reclassification, change, consolidation, merger, combination, sale or conveyance assuming such holder of Common Stock did not exercise his rights of election, if any, as to the kind or amount of stock, other securities or other property or assets
(including cash) receivable upon such reclassification, change, consolidation, merger, combination, sale or conveyance (provided that , if the kind or amount of stock, other securities or other property or assets (including cash) receivable upon
such reclassification, change, consolidation, merger, combination, sale or conveyance is not the same for each share of Common Stock in respect of which such rights of election shall not have been exercised (“non-electing share”), then for
the purposes of this Section 8 the kind and amount of stock, other securities or other property assets (including cash) receivable upon such reclassification, change, consolidation, merger, combination, sale or conveyance for each non-electing
share shall be deemed to be the kind and amount so receivable per share by a plurality of the non-electing shares). Such supplemental instrument shall provide for adjustments which shall be as nearly equivalent as may be practicable to those
provided for in this Sections 7 and 8. 
 The above provisions of this Section 8 shall similarly apply to successive reclassifications,
changes, consolidations, mergers, combinations, sales and conveyances. 
 If this Section 8 applies to any event or occurrence,
Section 7 shall not apply. 
 9. COVENANTS 
 (a) The Company shall not, without the approval of the Holder, create, incur, assume or permit to exist any Indebtedness, except the following (together, the “Permitted Indebtedness”): 
 (i) Indebtedness secured by equipment (including equipment that is part of the Secured Property) and that constitutes capital equipment financing for
capital expenditures (including but not limited to Indebtedness secured by purchase money security interests) incurred in the ordinary course of the Company’s business; provided that the amount of such financing incurred does not exceed $5
million during 2006, $5 million during 2007, $8 million during 2008 and $10 million during 2009, excluding in all cases any expenditures required of the Company by Holder in connection with the establishment of the Adjacent Facility or Separate
Facility (as contemplated by the Collaboration Agreement, 
 (ii) Indebtedness in respect of working capital financing on commercially
available terms that is secured by a security interest only in (A) the accounts receivable of the Company (including books and records related thereto), and/or (B) other assets of the Company that are not part of the Secured Property,
and/or (C) by assets consisting of Secured Property, provided that in the case of clause (C) such security interest shall be otherwise subordinated to the Note in the same manner as the Indebtedness referred to in clause (viii) below;

  

 16 

 (iii) Indebtedness secured by equipment (including equipment that is part of the Secured Property) in an
outstanding principal amount of $250,000 or less, in aggregate (together with Indebtedness permitted under clause (i) and (ii) above, “Permitted Lien Indebtedness”); 
 (iv) Indebtedness with respect to surety bonds, letters of credit and similar obligations arising in the ordinary course of business; 
 (v) Indebtedness that may arise out of currency hedge transactions, interest rate or other swap arrangements incurred in the ordinary course of business;

 (vi) Unsecured indebtedness in an aggregate outstanding amount of up to $250,000; 
 (vii) Extensions, refinancings and renewals of Permitted Lien Indebtedness; and 
 (viii) other Indebtedness, provided that no principal, interest or other amount on such Indebtedness shall be payable prior to the full payment or
conversion of this Note and such Indebtedness shall be otherwise subordinated to the Note and any Permitted Lien securing such Indebtedness shall be junior to the security interest granted to the Secured Party, pursuant to a subordination and
intercreditor agreement in form and substance reasonably satisfactory to the Holder. 
 (b) The Company shall not, without the approval of
the Holder, redeem, repurchase, pay or declare any dividends or other distributions with respect to any of its capital stock or other equity interests (except for (i) acquisitions of Common Stock by the Company upon termination of an employee
or consultant’s services to the Company and (ii) settlement or repurchase of any of the Company’s outstanding Contingent Value Rights (as defined in the Purchase Agreement)). 
 (c) The Company shall not, without the approval of the Holder, enter into any line of business that is not within the scope of the Company’s current
or proposed Business (as hereinafter defined). For purposes of this Section 9, “Business” shall mean the provision of diagnostic products and services that (i) aid in the guidance of therapy choices for serious diseases
and (ii) aid in the development of new therapies for serious diseases, including, but not limited to, infectious disease and cancer. Notwithstanding the foregoing, neither (x) the grant of technology license(s) by or to the Company, nor
(y) the marketing or co-promotion of therapeutic products not comprising anti viral therapeutic products, shall constitute entry into a line of Business. 
 (d) The Company shall not, without the approval of the Holder, consolidate with or merge into any other Person (in a transaction in which the Company is not the surviving Person) or convey, transfer or lease all or
substantially all of its assets (including, without limitation, a substantial part of the Secured Property) to another entity unless the Person formed by such consolidation or into which the Company is merged or the entity which acquires by
conveyance or transfer, or which leases, such properties and assets of the Company, shall (i) be a corporation, limited liability company, partnership or trust organized and validly existing under the laws of the United States of America, any
State thereof or the District of Columbia, (ii) agrees to be bound by all terms of the Note and (iii) have at least one class of common equity listed on the Nasdaq National Market or a national securities exchange. 
  

 17 

 (e) The Company shall not, without the approval of the Holder, create, incur, assume or permit to exist
any Lien on any of the Secured Property, except for the following (together, the “Permitted Liens”): (i) Liens securing Permitted Lien Indebtedness, (ii) Liens securing Indebtedness permitted under clause (a)(viii) of this
Section, which shall be subject to the applicable subordination and intercreditor agreement referred to in such clause, (iii) Liens existing on the date hereof and listed on Schedule 3.4 of the Security Agreement, (iv) Liens for taxes,
fees and other governmental charges, either not delinquent or being contested in good faith by appropriate proceedings and for which the Company maintains adequate reserves, (v) Liens arising from judgments resulting from circumstances that do
not constitute an Event of Default, (vi) Liens in favor of financial institutions in connection with the Company’s deposit accounts securing standard fees for deposit, lockbox and other services (but not borrowed money),
(vii) non-exclusive licenses granted to others in the ordinary course of business, (viii) Liens of materialmen, carriers, mechanics or similar Liens arising in the ordinary course of business, (ix) Deposits in the ordinary course of
business under worker’s compensation and other similar laws, (x) Easements, restrictions and irregularities in title and other similar charges or encumbrances affecting real property, (xi) Liens in favor of customs authorities arising
as a matter of law, and (xi) the Liens created pursuant to the Collaboration Security Agreement in favor of the Holder. 
 (f) The
Company shall not without the approval of the holder authorize, enter into or permit to exist any transactions with any director or officer, or any member of such director’s or officer’s immediate family or any Affiliate of the Company
(collectively, a “Related Person”), other than in the ordinary course of business on terms not more favorable to the Related Person than would have been obtainable in an “arms’ length” dealing. 
 (g) The Company shall cause each of its Subsidiaries not to take any action that the Company is restricted from taking under this Note. All assets and
property that would constitute Secured Property (if acquired by the Company) shall be acquired by the Company directly and not by any Subsidiary of the Company. 
 (h) All covenants of the Company contained in this Section 9 shall expire and terminate upon full payment or conversion of the Note. 
 10. TRANSFER 
 The Note is non-transferable by the Holder other than to one of its Affiliates.

 11. PERSONS DEEMED OWNERS 
 The Holder
of a Note may be treated as the owner of it for all purposes. 
 12. AMENDMENT, SUPPLEMENT AND WAIVER 
 This Note may be amended or supplemented only with the consent of the Company and the Holder, and an existing default or Event of Default (as defined
below) and its consequences or compliance with any provision of this Note may be waived in a particular instance only with the consent of the Holder. 
  

 18 

 13. DEFAULTS AND REMEDIES 
 (a) An Event of Default shall occur and be continuing if any of the following occurs: 
 (i) the Company
defaults in the payment of any interest on this Note when the same becomes due and payable and the default continues for a period of 5 days; 
 (ii) the Company defaults in payment of any principal (including, without limitation, any premium, if any) on the Note when the same becomes due and payable; 
 (iii) the Company fails to cure within 30 days following notice to comply with any covenant, condition, agreement or obligation contained in any of the Note, the Purchase Agreement or the Security Agreement (the
“Transaction Documents”); 
 (iv) any representation or warranty made or, pursuant to Section 7.2 of the Purchase
Agreement deemed made as of the Closing Date, by the Company pursuant to any Transaction Document shall have been incorrect when made or deemed made, but only if such inaccuracy (disregarding for this purpose any materiality or material adverse
effect qualification set forth therein) has a material adverse effect on the Company or materially limits the ability of the Holder to exercise its rights hereunder; 
 (v) the holder or holders of any Permitted Lien Indebtedness or any trustee or agent on its or their behalf cause, any Permitted Lien Indebtedness in an outstanding principal amount in excess of $100,000 to become
due, or to require the prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity; 
 (vi) the Company,
pursuant to or within the meaning of any Bankruptcy Law: 
 (A) commences a voluntary case or proceeding; 
 (B) consents to the entry of an order for relief against it in an involuntary case or proceeding; 
 (C) consents to the appointment of a Custodian of it or for all or substantially all of its property; or 
 (D) makes a general assignment for the benefit of its creditors; or 
 (vii) a court of competent jurisdiction enters an order or decree under any Bankruptcy Law that: 
 (A) is for relief against the Company in an involuntary case or proceeding; 
  

 19 

 (B) appoints a Custodian of the Company or for all or substantially all of the property
of the Company; or 
 (C) orders the liquidation of the Company; 
 and in each case the order or decree remains unstayed and in effect for 60 consecutive days. 
 The term “Bankruptcy Law” means Title 11 of the United States Code (or any successor thereto) or any similar federal or state law
for the relief of debtors. The term “Custodian” means any receiver, trustee, assignee, liquidator, sequestrator or similar official under any Bankruptcy Law. 
 (b) If an Event of Default (other than an Event of Default specified in subsections (a)(vi) and (a)(vii) above) occurs and is continuing, the Holder may,
by notice to the Company, declare all unpaid principal of the Note outstanding on the date of acceleration (if not then due and payable) to be due and payable immediately. If an Event of Default specified in subsections (a)(vi) and (a)(vii) above
with respect to the Company occurs, all unpaid principal of the Note then outstanding shall become due and payable immediately without any declaration or other act on the part of the Holder. After an acceleration, but before a judgment or decree
relating thereto by any federal or state court of competent jurisdiction has been entered or issued, the Holder by notice to the Company may rescind an acceleration and its consequences if (i) all existing Events of Default, other than the
nonpayment of the principal of the Note which has become due solely by such declaration of acceleration, have been cured or waived; (ii) to the extent the payment of such interest is lawful, interest (calculated at the rate per annum borne by
this Note) on overdue installments of interest and overdue principal, which has become due otherwise than by such declaration of acceleration, has been paid; and (iii) the rescission would not conflict with any judgment or decree of a court of
competent jurisdiction. No such rescission shall affect any subsequent default or impair any right consequent thereto. 
 14. NO RECOURSE AGAINST OTHERS

 A director, officer, employee or shareholder, as such, of the Company shall not have any liability for any obligations of the Company
under this Note nor for any claim based on, in respect of or by reason of such obligations or their creation. The Holder, by accepting this Note, waives and releases all such liability. The waiver and release are part of the consideration for the
issuance of this Note. 
 15. NOTICES 
 Unless otherwise provided, any notice required or permitted under this Note shall be given in writing and shall be deemed effectively given as hereinafter described (i) if given by personal delivery, then such notice shall be deemed
given upon such delivery, (ii) if given by telex or telecopier, then such notice shall be deemed given upon receipt of confirmation of complete transmittal, (iii) if given by mail, then such notice shall be deemed given upon the earlier of
(A) receipt of such notice by the recipient or (B) three days after such notice is deposited in first class mail, postage prepaid, and (iv) if given by an internationally recognized overnight air courier, then such notice shall be
deemed given one business day after delivery to such carrier. All notices shall 

  

 20 

 
be addressed to the party to be notified at the address as follows, or at such other address as such party may designate by ten days’ advance written
notice to the other party: 
  

			
	If to the Company:	    	Monogram Biosciences Inc.
		    	345 Oyster Point Boulevard
		    	South San Francisco, California 94080
		
		    	Attention:       Chief Executive Officer
		    	Facsimile No: +1 650-635-1111
		
	with a copy to:	    	Attention:       General Counsel
		    	Facsimile No.: +1 650-635-1111
		
	If to the Holder:	    	Pfizer Inc.
		    	235 East 42nd Street
		    	New York, New York 10017
		
		    	Attention: President, Pfizer Human Health
		    	Facsimile No.: +1 212-808-8652
		
	with a copy to:	    	Attention: Vice Chairman, Executive Vice President and General Counsel
		    	Facsimile No.: +1 212-808-8924

 16. GOVERNING LAW 
 This Note shall be governed by, and construed in accordance with, the laws of the State of New York, without regard to principles of conflicts of law. 
 17. SUBMISSION TO JURISDICTION 
 (a) Submission to Jurisdiction. In accordance with
Section 5-1402 of the New York General Obligations Law, the Company hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme Court of the State of New York sitting in New York
County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Note, or for recognition or enforcement of any judgment,
and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State court or, to the extent permitted by law, in such Federal
court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in this
Agreement shall affect any right that the holder may otherwise have to bring any action or proceeding relating to this Note against the Company or its properties in the courts of any jurisdiction. 
  

 21 

 (b) Waiver of Venue and Inconvenient Forum. The Company hereby irrevocably and unconditionally
waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Note in any court referred to in
paragraph (a) of this Section 17. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

 (c) Service of Process. Each Obligor irrevocably consents to service of process in the manner provided for notices in
Section 15. This Section 17(c) does not affect any other method of service allowed by law. Nothing in this Note will affect the right of any party to this Note to serve process in any other manner permitted by law. 
 (d) WAIVER OF JURY TRIAL EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN
ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS NOTE OR ANY OTHER TRANSACTION DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY or THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT
IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 17. 
  

 22 

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 
  

			
	MONOGRAM BIOSCIENCES, INC.
		
	By:	 	 /s/ William D. Young

	Name:	 	William D. Young
	Title:	 	Chief Executive Officer

 CONVERSION NOTICE 
 To convert this Note into Common Stock of the Company, check the box:  ̈ 
 To convert only part of this Note, state the principal amount to be converted (must be $1,000 or an integral multiple of $1,000):
$                    . 
 If you want the stock
certificate made out in another person’s name, fill in the form below: 
  
  

 (Insert assignee’s soc. sec. or tax I.D. no.) 
  
  

  

  

  

 (Print or type assignee’s
name, address and zip code) 
  

							
		 		 		 	Your Signature:
				
	Date:	 	  
	 		 	  

		 		 		 	 (Sign exactly as your name appears on the other side of this Note)Note Security Agreement

 Exhibit 10.3 
 NOTE SECURITY AGREEMENT 
 This Note Security Agreement (this “Agreement”) is made
and entered into as of May 5, 2006 by and between Monogram Biosciences, Inc. (the “Grantor”), and Pfizer Inc. (the “Secured Party”). 
 RECITALS 
 The Secured Party proposes to enter into a transaction
with the Grantor pursuant to a Note Purchase Agreement dated as of the date hereof (as amended from time to time, the “Purchase Agreement”) pursuant to which, the Secured Party, subject to the terms and conditions of the Purchase
Agreement proposes to purchase a 3.0% Senior Secured Convertible Note of Grantor to be issued on the Closing Date in a principal amount of up to $25,000,000 (as amended from time to time, the “Note”). Grantor wishes to secure
performance and payment of all obligations to Secured Party under the Note, the Purchase Agreement and this Agreement with certain of its assets. 
 NOW, THEREFORE, the Grantor and the Secured Party agree as follows: 
 1.
Definitions 
 1.1 Unless otherwise defined herein, terms defined in the Note and used herein shall have the meanings given to them
in the Note, and all terms used herein that are defined in Article 9 of the Code (as defined below) and not otherwise defined herein shall have the same meaning as set forth in the Article 9 of the Code. 
 1.2 The following terms shall have the following meanings: 
 (a) “Agreement” has the meaning assigned to it in the Recitals. 
 (b)
“Assay” has the meaning assigned to it in the Collaboration Agreement. 
 (c) “Closing Date”
has the meaning assigned to it in the Purchase Agreement. 
 (d) “Code” means the Uniform Commercial Code as from
time to time in effect in the State of New York. 
 (e) “Collaboration Agreement” means the Collaboration Agreement,
dated as of May 5, 2006, between Grantor and Secured Party. 
 (f) “Collateral” has the meaning assigned to it
in Section 2.1 
 (g) “Contracts” means all contracts, agreements, instruments and indentures in any form and
portions thereof, to which the Grantor is a party or under which the Grantor or any property of the Grantor is subject, as the same may from time to time be 

  

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amended, supplemented, waived or otherwise modified, including, without limitation, (i) all rights of the Grantor to receive moneys due and to become
due to it thereunder or in connection therewith, (ii) all rights of the Grantor to damages arising thereunder and (iii) all rights of the Grantor to perform and to exercise all remedies thereunder. 
 (h) “Copyright Licenses” means all license agreements of the Grantor providing for the grant by or to the Grantor of any right
to use any Copyright of or by the Grantor, and the right to prepare for sale, sell and advertise for sale, all Inventory now or hereafter covered by such licenses. 
 (i) “Copyrights” means all copyrights arising under the laws of the United States, the European Union or any other country or any political subdivision thereof, whether or not the underlying
works of authorship have been published or registered, all US or other copyright registrations and copyright applications, including, without limitation, any copyright registrations and copyright applications, and (i) all renewals thereof,
(ii) all income, royalties, damages and payments now and hereafter due and/or payable with respect thereto, including, without limitation, payments under all licenses entered into in connection therewith, and damages and payments for past or
future infringements thereof and (iii) the right to sue or otherwise recover for past, present and future infringements thereof. 
 (j) “Event of Default” has the meaning assigned to in the Note. 
 (k) “General
Intangibles” means all “general intangibles” (including, without limitation, all “payment intangibles”), as such terms are defined in Article 9 of the Code as in effect on the date hereof. 
 (l) “Grantor” has the meaning assigned to it in the Recitals. 
 (m) “HIV Testing Business” means the performance by Grantor in its clinical laboratory facility or at another location on behalf
of Grantor, of Grantor’s proprietary in-house PhenoSense(tm) HIV, PhenoSense GT(tm), GeneSeq(tm) HIV, and Entry and Co-receptor Tropism assays and any assays that may be performed by Grantor after the date hereof, for the purpose of HIV
virology diagnostic testing with respect to patient blood samples and for the purpose of pharmaceutical customer use in the development of products designed to be used in the treatment of HIV. 
 (n) “Intellectual Property” means, collectively, the Copyrights, Copyright Licenses, Patents, Patent Licenses, Trade Secrets,
Trademarks and Trademark Licenses. 
 (o) “Intellectual Property Collateral” means all Intellectual Property, in
which a security interest is granted to Secured Party pursuant to Section 2.1. 
 (p) “Inventory” means all
“inventory” (as defined in the Code) of the Grantor and all goods of the Guarantor, whether now owned or hereafter acquired, that (i) are leased by a person as lessor, (ii) are held for sale or lease, (iii) are furnished or
to be furnished by the Grantor under contracts of service, or (iv) consist of raw materials, work in process or materials consumed in the Grantor’s business, including, without limitation, intermediates, 

  

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packaging materials, finished goods, semi-finished inventory, scrap inventory, manufacturing supplies and spare parts and all such goods that have been
returned to or repossessed by or on behalf of the Grantor. 
 (q) “Lien” means any lien, charge, claim, pledge,
security interest, conditional sale agreement or other title retention agreement, lease, mortgage, security agreement, option or other encumbrance (including but not limited to the filing of, or agreement to give, any financing statement under the
UCC (as defined below)). 
 (r) “Material Adverse Effect” has the meaning assigned to it in Section 3.1.

 (s) “Note” has the meaning assigned to it in the Recitals hereto. 
 (t) “Patent Licenses” means all license agreements of the Grantor with any other Person, in connection with any of the Patents
of the Grantor or such other Person’s patents, whether the Grantor is a licensor or a licensee under any such agreement and the right to prepare for sale, sell and advertise for sale, all Inventory now or hereafter covered by such licenses.

 (u) “Patents” means all patents of the United States, the European Union or any other country or political
subdivision thereof, all applications for patents of the United States, the European Union or any other country or political subdivision thereof and all patentable inventions and all reissues and extensions thereof, including, without limitation,
all patents and patent applications, and including, without limitation, (i) all inventions and improvements described and claimed therein, (ii) the right to sue or otherwise recover for any and all past, present and future infringements
and misappropriations thereof, (iii) all income, royalties, damages and other payments now and hereafter due and/or payable with respect thereto (including, without limitation, payments under all licenses entered into in connection therewith,
and damages and payments for past, present or future infringements thereof), and (iv) all other rights corresponding thereto in the United States, the European Union or any other country or political subdivision thereof and all reissues,
divisions, continuations, continuations-in-part, substitutes, renewals, and extensions thereof, all improvements thereon, and all other rights of any kind whatsoever accruing thereunder or pertaining thereto. 
 (v) “Permitted Indebtedness” has the meaning assigned to it in the Note. 
 (w) “Permitted Liens” means any Liens expressly permitted by and created in accordance with the requirements of
Section 9(e) of the Note. 
 (x) “Person” means an individual, partnership, corporation (including a business
trust), limited liability company, joint stock company, trust, unincorporated association, joint venture or other entity, or a government or any political subdivision or agency thereof. 
 (y) “Proceeds” means all “proceeds” as such term is defined in Article 9 of the Code in effect on the date hereof.

  

 3 

 (z) “Secured Obligations” means, collectively, (i) all obligations and
liabilities of the Grantor in respect of the unpaid principal of and interest on (including, without limitation, interest accruing after the maturity of the Note, and reimbursement obligations and interest accruing after the filing of any petition
in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to the Grantor, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding) the Note and any reimbursement
obligations, and (ii) all other obligations and liabilities of Grantor to the Secured Party, whether direct or indirect, absolute or contingent, due or to become due, or now existing or hereafter incurred, which may arise under, out of, or in
connection with, this Agreement, the Note or the Purchase Agreement, in each case whether on account of principal, interest, reimbursement obligations, fees, indemnities, costs, expenses or otherwise, other than inchoate indemnity obligations
(including, without limitation, reasonable fees, expenses and disbursements of counsel to the Secured Party that are required to be paid by the Grantor pursuant to the terms of the Note, the Purchase Agreement or this Agreement). 
 (aa) “Trade Secrets” means all trade secrets in the United States, the European Union, or any other country or political
subdivision thereof, including, without limitation, know-how, processes, formulae, compositions, designs, and confidential business and technical information, and all rights of any kind whatsoever accruing thereunder or pertaining thereto,
including, without limitation, (i) all income, royalties, damages and payments now and hereafter due and/or payable with respect thereto, including, without limitation, payments under all licenses, non-disclosure agreements and memoranda of
understanding entered into in connection therewith, and damages and payments for past or future misappropriations thereof, and (ii) the right to sue or otherwise recover for past, present or future misappropriations thereof. 
 (bb) “Trademark Licenses” means all license agreements of the Grantor with any other Person in connection with any of the
Trademarks of the Grantor or such other Person’s names or trademarks, whether the Grantor is a licensor or a licensee under any such agreement and the right to prepare for sale, sell and advertise for sale, all Inventory now or hereafter
covered by such licenses. 
 (cc) “Trademarks” means all trademarks, service marks, trade names, trade dress or
other indicia of trade origin or business identifiers, trademark and service mark registrations, and applications for trademark or service mark registrations, whether in the United States Patent and Trademark Office or any similar office or agency
of the United States, any State thereof or any other country or the European Union, or any political subdivision thereof (except for “intent to use” applications for trademark or service mark registrations filed pursuant to
Section 1(b) of the Lanham Act, 15 U.S.C. § 1051, unless and until an Amendment to Allege Use or a Statement of Use under Sections 1(c) and 1(d) of said Act has been filed) and all goodwill associated therewith, and any renewals
thereof, including, without limitation, (i) the right to sue or otherwise recover for any and all past, present and future infringements or dilutions thereof, (ii) all income, royalties, damages and other payments now and hereafter due
and/or payable with respect thereto (including, without limitation, payments under all licenses entered into in connection therewith, and damages and payments for past or future infringements or dilutions thereof), and (iii) all other rights
corresponding thereto and all other rights of any kind whatsoever accruing thereunder or pertaining thereto, together in each case with the goodwill of the business connected with the use of, and symbolized by, each such trademark, service mark,
trade name, trade dress or other indicia of trade origin or business identifiers. 
  

 4 

 (dd) “Transaction Documents” means the Note, the Purchase Agreement and this
Agreement. 
 (ee) “UCC” means the Uniform Commercial Code of any jurisdiction or any comparable law or system in
any jurisdiction outside the United States. 
 1.3 Other Definitional Provisions. The words “hereof”, “herein”,
“hereto” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, Schedule, Exhibits and Annex references
are to this Agreement unless otherwise specified. Any reference in this Agreement to a Schedule shall refer to such Schedule as amended from time to time pursuant to the terms of this Agreement. 
 (b) The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms. 
 2. Grant of Security Interest 
 2.1
Grant of Security Interest. As security for the prompt and complete payment and performance when due (whether at the stated maturity, upon any required earlier repayment, declaration of default, acceleration or otherwise) of the Secured
Obligations, the Grantor hereby assigns, pledges and grants to the Secured Party, a security interest in all of the following property now owned or at any time hereafter acquired by the Grantor or in which the Grantor now has or at any time in the
future may acquire any right, title or interest (collectively, the “Collateral”): 
 (a) all Contracts used or held
for use in connection with the HIV Testing Business, including but not limited to Contracts listed on Schedule 1 (the “Pledged Contracts”); 
 (b) all Documents used or held for use in connection with the HIV Testing Business, including but not limited to all Documents listed on Schedule 2; 
 (c) all Equipment and all logs related thereto, used or held for use in connection with the HIV Testing Business, including but not limited to
(i) all Equipment listed on Schedule 3 and (ii) all Equipment hereinafter replacing Equipment listed on Schedule 3 the (“Pledged Equipment”), excluding any Equipment or proceeds thereof to the extent and during the period
that the grant of the security interest hereunder would violate or constitute a default under (i) any agreements listed on Schedule 1 hereto or (ii) the terms of any Indebtedness permitted pursuant to clause (a)(i) or (iii) of
Section 9 of the Note for the financing of such Equipment; (but only to such extent and only for such period); 
 (d) all
General Intangibles used or held for use in connection with the HIV Testing Business; 
 (e) all Intellectual Property used or held
for use in connection with the HIV Testing Business, including but not limited to all Intellectual Property listed on Schedules 4, 5, 6 and 7; 
  

 5 

 (f) all Inventory used or held for use in connection with the HIV Testing Business (the
“Pledged Inventory”); 
 (g) all Permits necessary in connection with or otherwise related to the HIV Testing
Business, including but not limited to the Permits listed on Schedule 8; provided, however, that such security interest does not include at any time Permits to the extent (but only to the extent) that applicable law prohibits Debtor from
granting such security interest in such Permits under applicable law or the Secured Party may not validly possess a security interest therein pursuant to applicable Law, but such security interest does include, to the maximum extent permitted by
law, all rights incident or appurtenant to such Permits (the “Pledged Permits”); and 
 (h) to the extent not
otherwise included, (v) all cell lines and reagents for running the Assay (x) all payments under any insurance policies (whether or not the Secured Party is the loss payee thereof) or under any indemnity, warranty or guaranty, payable by
reason of loss or damage to or otherwise with respect to any of the foregoing Collateral, (y) all Proceeds of and supporting obligations relating to any and all of the foregoing, and (z) all books and records pertaining to any of the
foregoing. 
 Notwithstanding any of the foregoing, Collateral shall not include any cash, accounts or accounts receivable, any cash Proceeds
thereof, and any books or records related thereto, now existing or hereafter arising. In the event the Grantor wishes to incur Permitted Lien Indebtedness, the Secured Party agrees that it shall reasonably cooperate with the Lender in executing
documents necessary to enable Lender to incur such Permitted Lien Indebtedness, provided that the Secured Party shall not be required in such documents to limit, waive or forebear any rights under the Transaction Documents. 
 2.2 Identification of Collateral. (a) Notwithstanding anything in this Agreement to the contrary, Parties agree that for the avoidance of
doubt, after consultation with the Grantor the Secured Party shall be entitled, but not obligated, to, supplement Schedules 1-8 (other than Schedules 3.4 and 3.8) of this Agreement at any time in order to identify property acquired after the date
hereof that, in its reasonable good faith judgment, is related to or used in connection with the HIV Testing Business and as such constitutes part of the Collateral; and Grantor shall execute any supplements, amendments, agreements or other
instruments and take any other steps requested by the Secured Party in order to effectively supplement such schedules. 
 (b) Grantor shall
promptly identify to Secured Party any assets or property of the Grantor acquired after the date hereof which in its good faith judgment are used or held for use in connection with the HIV Testing Business and will furnish to the Secured Party from
time to time statements and schedules further identifying and describing such assets and property of the Grantor, as reasonably requested by the Secured Party. 
 2.3 No Liability of Secured Party under Contracts. The Secured Party 
  

 6 

 shall not have any obligation or liability under any Contract by reason of or arising out of this Agreement or the
receipt by the Secured Party of any performance or payment relating to such Contract pursuant hereto, nor shall the Secured Party be obligated in any manner to perform any of the obligations of the Grantor under or pursuant to any Contract, to make
any payment, to make any inquiry as to the nature or the sufficiency of any payment received by it or as to the sufficiency of any performance by any party under any Contract, to present or file any claim, to take any action to enforce any
performance or to collect the payment of any amounts which may have been assigned to it or to which it may be entitled at any time. 
 3.
Grantor’s Representations and Warranties. Grantor represents and warrants as follows: 
 3.1 Organization and Good Standing.
The Company has been duly incorporated and is validly existing as a corporation in good standing under the laws of the State of Delaware, has full corporate power and authority to own or lease its properties and conduct its business as described in
the SEC Documents (as defined in the Purchase Agreement), and is duly qualified as a foreign corporation and in good standing in all jurisdictions in which the character of the property owned or leased or the nature of the business transacted by it
makes qualification necessary, except where the failure to be so qualified would not have a material adverse effect on the business, properties, financial condition or results of operations of the Grantor or to perform its obligations under any of
the Transaction Documents (any of the foregoing, a “Material Adverse Effect”). 
 3.2 Authorization. Grantor has
authority and has obtained all approvals and consents necessary to enter into and deliver this Agreement and carry out and perform all of its obligations hereunder. This Agreement constitutes a legal, valid and binding obligation of the Grantor,
enforceable in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or affecting the enforcement of creditors’ rights generally and (ii) as
limited by equitable principles generally, including any specific performance. 
 3.3 Compliance with Other Instruments. The
execution, delivery and performance of and compliance with this Agreement by the Grantor and any exercise of rights by the Secured Party thereunder will not conflict with or result in a breach or violation of the terms, conditions or provisions of,
or result in any acceleration or loss of rights under (including upon the passage of time or notice or both) (a) the Certificate of Incorporation or Bylaws of the Grantor, (b) any statute, law, rule or regulation (including without
limitation, the rules and regulations applicable to the Nasdaq Stock Market and applicable securities laws) applicable to the Grantor, (c) any state or federal order, judgment or decree applicable to the Grantor or (d) any indenture,
mortgage, lease or other agreement or instrument to which the Grantor or any of its properties is subject and, in the case of clauses (b), (c) or (d), where such breach or violation would have a Material Adverse Effect or would materially
impair or limit the exercise of rights by the Secured Party granted under any of the Transaction Documents. The execution, delivery and performance of and compliance with this Agreement will not require the approval of its stockholders, or result in
the creation or imposition of any Lien (other than Liens created hereunder) upon any of the properties or assets of the Grantor. 
  

 7 

 3.4 Title. Except for Permitted Liens (including, without limitation, Liens existing on the date
hereof and listed on Schedule 3.4 hereto), Grantor owns each item of Collateral free and clear of any and all Liens, encumbrances and other security interests, except for the security interest granted to the Secured Party pursuant to this Agreement.
No security agreement, financing statement or other public notice similar in effect with respect to all or any part of the Collateral is on file or of record in any public office, except such as may have been filed in favor of the Secured Party
pursuant to this Agreement. 
 3.5 Perfected First Priority Liens. (i) The security interest granted hereby constitutes, or with
respect to Collateral acquired after the date hereof, will constitute, a valid, binding and enforceable security interest in the Collateral, in favor of the Secured Party. 
 (ii) Except for Permitted Liens (excluding for this purpose Liens permitted pursuant to clause (e)(ii) of Section 9 of the Note), the Liens granted
to the Secured Party pursuant to this Agreement (upon filing of the Filings and with respect to items of Equipment which are subject to certificate of title statutes requiring that notation of the security interest be made on the certificate of
title, upon perfection in accordance with applicable law) will constitute perfected Liens on the Collateral prior to all other Liens on the Collateral. 
 3.6 Consents. No authorization, consent or approval or other action by, and no notice to or filing with, any Governmental Authority or other regulatory body, or any other Person, is required for (i) the
grant by Grantor, or the perfection, of the security interest purported to be created hereby in the Collateral or (ii) the exercise by Secured Party of any of its rights and remedies hereunder, except (A) for the filing of financing
statements under the Article 9 of the Code (the “UCC Filings”), (B) with respect to the perfection of the security interest created hereby in Copyrights, Trademarks or Patents, for the recording of this Agreement or a notice
thereof, in the United States Patent and Trademark Office or the United States Copyright Office, as applicable (the “IP Filings” and, together with the UCC Filings, the “Filings”), and (C) with respect to the
perfection of the security interest created hereby in Collateral located outside of the United States, for registrations and filings in jurisdictions located outside of the United States and covering rights in such jurisdictions in relation to such
Collateral. 
 3.7 Location of Tangible Property. All material, Inventory and Equipment constituting Collateral is kept at the
Monogram Facility. Schedule 3 is a complete and correct list of all material Equipment used or held for use in connection with the HIV testing Business. 
 3.8 Names; Jurisdiction of Organization; Collateral Locations. Grantor is a Registered Organization organized under the laws of the State of Delaware and Grantor’s (i) exact legal name, as such name
appears in its respective certificate of incorporation or any other organizational document, (ii) organizational identification number, if any, (iii) the location of Grantor’s chief executive office or sole place of business in the
last 6 months, (iv) any other corporate or organizational names any Grantor has had in the past five years, together with the date of the relevant change, (v) any United States trade names of such Granting Party, together with the states
of the United States in which such trade names are used and (vi) all jurisdiction in which a Uniform Commercial Code financing statement may have been filed under applicable law (as in effect prior to, on or after July 1, 2001) to perfect
the personal property collateral of the Grantor are specified on Schedule 3.8. 
  

 8 

 3.9 Intellectual Property. (a) Schedules 4, 5 and 6 respectively, set forth a complete
and correct list of all registered Copyrights, Patents, and registered Trademarks, and all applications for Copyrights, Patents and Trademarks, in each case, used or held for use in connection with the HIV Testing Business of and owned by the
Grantor. Grantor possesses the right to use, and has not authorized any other Person to use, such Copyrights, Patents and Trademarks, except as set forth on Schedule 7. Except as set forth on Schedules 4, 5 and 6, to the knowledge of the grantor,
each Copyright, Patent and Trademark owned by Grantor is valid, subsisting, unexpired and enforceable and has not been abandoned. 
 (b)
Schedule 7 sets forth a complete and correct list of all Copyright Licenses, Patent Licenses, Trademark Licenses and any grant of rights or licenses with respect to Trade Secrets, used or held for use in connection with the HIV Testing Business
and other agreements providing for the grant of rights by or to the Grantor with respect to the Intellectual Property Collateral of the Grantor. 
 3.10 Contracts. (a) Schedule 1 is a correct and complete list of each material Contract that is related to or useful in the HIV Testing Business (each a “Pledged Contract”). Each Pledged Contract is in full
force and effect and constitutes a valid and legally enforceable obligation of the Grantor, subject to the effects of bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws relating to or affecting
creditors’ rights generally, general equitable principles (whether considered in a proceeding in equity or at law) and an implied covenant of good faith and fair dealing. 
 (b) No material consent or material authorization of, filing with, or other act by or in respect of, any Governmental Authority is required in
connection with the execution, delivery, performance, validity or enforceability of any of the Pledged Contracts by the Grantor other than those which have been duly obtained, made or performed, are in full force and effect and do not subject the
scope of any such Pledged Contract to any material adverse limitation, either specific or general in nature. 
 (c) Neither the
Grantor nor (to the Grantor’s knowledge) any of the other parties to the Pledged Contracts is in default in the performance or observance of any of the terms thereof in any manner that, in the aggregate, could reasonably be expected to have a
Material Adverse Effect. 
 (d) The right, title and interest of the Grantor in, to and under the Contracts are not subject to any
defenses, offsets, counterclaims or claims that, in the aggregate, could reasonably be expected to have a Material Adverse Effect. 
 3.11
Solvency, Payment of Debts. The Grantor is solvent and able to pay its debts (including trade debts) as they mature. 
 4.
Covenants. Grantor covenants and agrees with the Secured Party that so long as any Secured Obligations remain outstanding it will (without limiting the effect of any and all covenants set forth in the Note) comply with the following: 

4.1 Compliance with Laws, etc. The Grantor will comply with all federal, state and local laws and regulations, rulings and orders applicable to
it and the Collateral or any part thereof, except where noncompliance with such laws, regulations, rulings and orders would not have a Material Adverse Effect. 
  

 9 

 4.2 Compliance with Contractual Obligations. The Grantor will perform and comply in all material
respects with all of its Contracts constituting Collateral, except where nonperformance or noncompliance with such Contracts would not have a Material Adverse Effect. 
 4.3 Maintenance of Insurance. (a) The Grantor will maintain, with financially sound and reputable companies, insurance policies (i) insuring the Inventory and Equipment that constitute the Collateral
against loss by fire, explosion, theft and such other casualties as are customary to the businesses of the size and type of the Grantor, and (ii) naming the Secured Party loss payee and additional insured. 
 (b) All such insurance shall (i) provide that no cancellation, material reduction in amount or material change in coverage thereof shall be
effective until at least 30 days after receipt by the Secured Party of written notice thereof, and (ii) name the Secured Party as insured party or loss payee. 
 (c) The Grantor shall deliver to the Secured Party a report of a reputable insurance broker with respect to such insurance as the Secured Party may from time to time reasonably request. 
 4.4 Payment of Obligations. The Grantor will pay and discharge or otherwise satisfy at or before maturity or before they become delinquent, as the
case may be, all taxes, assessments and governmental charges or levies imposed upon or affecting the Collateral of Grantor, as well as all claims of any kind (including, without limitation, claims for labor, materials and supplies) against or with
respect to such Collateral, except (a) that no such charge need be paid if the amount or validity thereof is currently being contested in good faith by appropriate proceedings, reserves in conformity with GAAP with respect thereto have been
provided on the books of the Grantor or (b) where the failure to pay, discharge or otherwise satisfy such obligations could not, individually or in the aggregate, reasonably be expected to result in the sale, forfeiture or loss of any portion
of the Collateral or any interest therein. 
 4.5 Maintenance of Perfected Security Interest. (a) The Grantor shall maintain the
security interest created by this Agreement as a valid security interest having at least the priority described in Section 3.5 and shall defend such security interest against the claims and demands of all Persons whomsoever. 
 (b) The Grantor will furnish to the Secured Party from time to time statements and schedules further identifying and describing the assets and
property of the Grantor and such other reports in connection therewith as the Secured Party may reasonably request, all in reasonable detail. 
 4.6 Changes in Locations, Name, etc. The Grantor will not, except upon 15 days’ prior written notice to the Secured Party and delivery to the Secured Party of all additional executed financing statements and other documents
reasonably requested by the Secured Party to maintain the validity, perfection and priority of the security interests provided for herein: 
 (a) change its jurisdiction of organization or the location of its chief executive office or sole place of business from that referred to in Section 3.8; or 
  

 10 

 (b) change its name. 
 4.7 Notices. The Grantor will advise the Secured Party promptly, in reasonable detail, of: 
 (a) The creation or existence of any Lien (other than security interests created hereby) on any of the Collateral; and 
 (b) the occurrence of any other event which could reasonably be expected to have a material adverse effect on the aggregate value of the
Collateral or on the security interests created hereby. 
 (c) The acquisition of Equipment with a value in excess of $250,000,
individually. 
 4.8 Intellectual Property. (a) The Grantor agrees to take all reasonably necessary steps, including in the
United States Patent and Trademark Office or in any court, to: 
 (i) maintain each trademark registration and each Trademark License
constituting Collateral, including but not limited to those now or hereinafter identified on Schedule 6 or 7 hereto, as the case may be, except, in each case in which the Grantor has reasonably determined that any of the foregoing is not of
material economic value to it, and 
 (ii) pursue each trademark application constituting Collateral, including but not limited to
those now or hereafter identified in Schedule 6 hereto, or otherwise related or useful in connection with its HIV Testing Business, including, without limitation, the filing of responses to office actions issued by the United States Patent and
Trademark Office, the filing of applications for renewal, the filing of affidavits under Sections 8 and 15 of the United States Trademark Act, and the participation in opposition, cancellation, infringement and dilution proceedings, except, in
each case in which the Grantor has reasonably determined that any of the foregoing is not of material economic value to it. The Grantor agrees to take corresponding steps with respect to each new or acquired trademark or service mark registration,
or application for trademark or service mark registration, or any rights obtained under any Trademark License, in each case, to which it is now or later becomes entitled, except in each case in which the Grantor has reasonably determined that any of
the foregoing is not of material economic value to it. Any expenses incurred in connection with such activities shall be borne by the Grantor. 
 (b) The Grantor agrees to take all necessary steps, including in the United States Patent and Trademark Office or in any court, to: 
 (i) maintain each patent and each Patent License constituting Collateral, including but not limited to those now or hereafter identified on Schedule 5 or 7 as applicable, except, in each case in which the Grantor has reasonably
determined that any of the foregoing is not of material economic value to it, and 
  

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 (ii) pursue each patent application, constituting Collateral, including but not limited to those
now or hereafter identified in Schedule 5 including the filing of divisional, continuation, continuation-in-part and substitute applications, the filing of applications for reissue, renewal or extensions, the payment of maintenance fees, and
the participation in interference, reexamination, opposition or infringement and misappropriation proceedings, except, in each case in which the Grantor has reasonably determined that any of the foregoing is not of material economic value to it. The
Grantor agrees to take corresponding steps with respect to each new or acquired patent, patent application, or any rights obtained under any Patent License, in each case, which it is now or later becomes entitled, except in each case in which the
Grantor has reasonably determined that any of the foregoing is not of material economic value to it. Any expenses incurred in connection with such activities shall be borne by the Grantor. 
 (c) The Grantor shall take all additional steps not set forth in subsections (a) and (b) hereof which it or the Secured Party deems
reasonably appropriate under the circumstances to preserve and protect its material Copyrights, Copyright Licenses, Trademarks, Trademark Licenses, Patents and Patent Licenses. 
 (d) The Grantor shall not abandon any trademark registration, patent, pending trademark or patent application constituting Collateral, including
but not limited to those now or hereafter listed on Schedules 4, 5 or 6, without the written consent of the Secured Party, unless the Grantor shall have previously determined that such use or the pursuit or maintenance of such trademark
registration, patent or pending trademark or patent application is not of material economic value to it. 
 (e) Subject to the
Grantor’s reasonable business judgment, the Grantor (either itself or through licensees) will not (and will not permit any licensee or sublicensee thereof to) do any act or knowingly omit to do any act whereby any material Copyrights, Patents
or Trademarks constituting Collateral may become invalidated or otherwise impaired. Subject to the Grantor’s reasonable business judgment, the Grantor will not (either itself or through licensees) do any act whereby any material portion of the
Copyrights constituting Collateral may fall into the public domain. 
 (f) The Grantor (either itself or through licenses) will not
do any act that knowingly uses any Intellectual Property Collateral to infringe the intellectual property rights of any other Person. 
 (g) The Grantor will notify the Secured Party promptly if it knows, or has reason to know, that any application or registration relating to any material Patents, Trademarks or Copyrights constituting Collateral may become forfeited,
abandoned or dedicated to the public, or of any adverse determination or development (including, without limitation, the institution of, or any such determination or development in, any proceeding in the United States Patent and Trademark Office,
the United States Copyright Office or any court or tribunal in the European Union or any other country) regarding the Grantor’s ownership of, or the validity of, any material Intellectual Property Collateral or the Grantor’s right to
register the same or to own and maintain the same. 
  

 12 

 (h) Whenever the Grantor, either by itself or through any agent, employee, licensee or designee,
shall file an application for the registration of any Patent, Trademark or Copyright with the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency in the European Union, any other country or
any political subdivision thereof, the Grantor shall report such filing to the Secured Party within ten Business Days after the last day of the fiscal quarter in which such filing occurs. The Grantor shall (x) make all appropriate filings in
the United States Patent and Trademark Office or the United States Copyright Office and any applicable office(s) outside of the United States for the registration of Intellectual Property owned outside of the United States and filing of financing
statements under the Uniform Commercial Code of any applicable jurisdiction and any similar registration system outside of the United States, (y) execute and deliver, and have recorded, any and all agreements, instruments, documents, and papers
as the Secured Party may request (including but not limited to amendments and supplements to Schedules 4, 5, 6 and 7 further identifying and describing the Intellectual Property Collateral and (z) take any other action reasonably requested by
the Secured Party, to evidence the Secured Party’s security interest in any Copyright, Patent or Trademark and the goodwill and General Intangibles of Grantor relating thereto or represented thereby and to perfect the security interest granted
to the Secured Party therein to the extent provided in respect of Copyrights, Patents or Trademarks constituting Collateral on the date hereof. 
 (i) Grantor will take all reasonable and necessary steps, including, without limitation, in any proceeding before the United States Patent and Trademark Office, the United States Copyright Office or any similar office or agency in
any other country or any political subdivision thereof, to maintain and pursue each application (and to obtain the relevant registration) and to maintain each registration of all material Intellectual Property Collateral, including, without
limitation, filing of applications for renewal, affidavits of use and affidavits of incontestability. 
 (j) In the event that any
material Intellectual Property Collateral is infringed, misappropriated or diluted by a third party, Grantor shall (i) take such actions as Grantor shall reasonably deem appropriate under the circumstances to protect such Intellectual Property
and (ii) if such Intellectual Property is of material economic value, promptly notify the Secured Party after it learns thereof and subject to its reasonable business judgment sue for infringement, misappropriation or dilution, to seek
injunctive relief where appropriate and to recover any and all damages for such infringement, misappropriation or dilution. 
 4.9
Limitations on Modifications, Waivers, Extensions of Contracts. The Grantor will not amend, modify, terminate or waive any provision of any Contract constituting Collateral, or any license of Intellectual Property Collateral except for
amendments, modifications, terminations or waivers in the ordinary course of business which would not, individually or in the aggregate, have a Material Adverse Effect or otherwise materially adversely affect the Secured Party. 
 4.10 Protection of Trade Secrets. The Grantor shall take all steps which it deems commercially reasonable to preserve and protect the secrecy of
all Trade Secrets constituting Collateral. 
  

 13 

 4.11 Encumbrances. Other than Permitted Liens, the Grantor shall not grant a security interest in
any of the Collateral other than to Secured Party or execute any financing statements covering any of the Collateral in favor of any person other than Secured Party. 
 4.12 Use of Collateral. The Collateral will not be used for any unlawful purpose. Except for Permitted Liens, the Grantor will keep the Collateral free and clear of Liens and adverse claims and, as appropriate
and applicable, will keep it in good condition and repair, and will clean, shelter, and otherwise care for the Collateral in all such ways as are considered good practice by owners of like property. 
 4.13 Limitations on Dispositions of Collateral. Without the prior written consent of the Secured Party or as otherwise expressly permitted by the
Collaboration Agreement, the Borrower will not sell, assign, transfer, exchange, license (other than compulsory licenses) or otherwise dispose of, or grant any option with respect to, the Collateral, or attempt, offer or contract to do so, except to
the extent granting a Permitted Lien would constitute such disposition and except for any such disposition of Equipment or Inventory that occurs in the ordinary course of business, consistent with past practice. For the avoidance of doubt, nothing
in this Section 4.13. constitutes authorization of the Grantor by the Secured Party to sell assign, transfer, exchange, license or otherwise dispose of any part of the Collateral free of the Secured Party’s security interest granted
hereunder. 
 4.14 Fees and Costs. After the occurrence of an Event of Default, the Grantor shall pay all expenses, including
reasonable attorneys’ fees, incurred by Secured Party in the preservation, realization, enforcement or exercise of any Secured Party’s rights under this Agreement. 
 4.15 Further Assurances. At any time and from time to time, upon the written request of Secured Party, and at the sole expense of the Grantor, the
Grantor shall promptly and duly execute and deliver any and all such further instruments and documents and take such further action as Secured Party may reasonably deem desirable to obtain the full benefits of this Agreement and of the rights and
powers herein granted, including, without limitation, (a) to secure all consents and approvals necessary or appropriate for the grant of a security interest to Secured Party in any Collateral held by the Grantor or in which the Grantor has any
rights not heretofore assigned, (b) filing any financing or continuation statements or amendments thereof under the Uniform Commercial Code (or other similar laws) in effect in any jurisdiction with respect to the security interests granted
hereby, (c) furnishing to Secured Party from time to time statements and schedules further identifying and describing the Collateral and such other reports in connection with the Collateral, in each case, as Secured Party may reasonable request
and (d) if any Collateral shall be in the possession of a Third Party, notifying such party of Secured Party’s security interest created hereby and, at Secured Party’s option, obtaining a written acknowledgment from such party that it
holds possession of the Collateral for the benefit of Secured Party. 
 4.16 Authorization to File Financing Statements. Without
limiting the generality of the foregoing, the Grantor hereby authorizes and approves of Secured Party’s 
  

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 preparing, filing and/or recording, with, on behalf of or without Grantor or its signature, and promptly upon Secured
Party’s request the Grantor shall sign and execute together, alone or with Secured Party, all as Secured Party shall reasonably determine, any financing statement or other comparable filing (including but not limited to, any such financing
statements as required by the UCC in any jurisdiction or any similar documents required to be filed in other jurisdictions or other comparable filings at the United States Patent and Trademark Office, the United States Copyright Office or any
similar governmental authority in other jurisdictions) that (A) describe or identify the Collateral by type or in any other manner as Secured Party may determine, regardless of whether any particular asset of Grantor falls within the scope of
Article 9 of the Code or whether any particular asset of Grantor constitutes part of the Collateral, and (B) contain any other information required by Part 5 of Article 9 of the Code or any applicable UCC for the sufficiency or filing office
acceptance of any financing statement, continuation statement or amendment) or take such other additional actions as Secured Party may reasonably require to perfect or protect the rights and interests of Secured Party in the Collateral. Until the
termination of this Agreement, Grantor hereby irrevocably appoints Secured Party as its agent to execute such documents or take such other action as is reasonably necessary to perfect or protect Secured Party’s rights and interests in the
Collateral in accordance with this Agreement. 
 4.17 Further Information. At all times Grantor shall provide to Secured Party all
information that is reasonably requested and necessary for Secured Party to perfect its security interests and Liens in the Collateral. 
 4.18 No Duties of Secured Party. Anything herein to the contrary notwithstanding, (i) the exercise by Secured Party of any of its rights hereunder shall not release Grantor from any of its obligations in respect of the
Collateral, and (ii) Secured Party shall not have any obligation or liability by reason of this Security Agreement with respect to any of the Collateral, nor shall the Secured Party be obligated to perform any of the obligations or duties of
Grantor or to take any action to collect or enforce any claim for payment assigned hereunder. 
 5. Default 
 5.1 Remedies on Default. If an Event of Default shall occur and be continuing, the Secured Party may, at its option, in addition to any rights,
privileges, powers and remedies provided by law: 
 (a) foreclose or otherwise enforce Secured Party’s security interests and
Liens or other rights and interests in the Collateral in any manner permitted by law or provided for in this Security Agreement; 
 (b)
sell or otherwise dispose of the Collateral or any part thereof or interest therein at one or more public or private sales at Secured Party’s place of business or any other place or places, whether or not such Collateral is present at the
place of sale, for cash or credit or future delivery, on such terms and in such manner as Secured Party may reasonably determine; for the avoidance of doubt, Secured Party may, in its own name, or in the name of a designee or nominee, buy the
Collateral at any public sale, and, if permitted by applicable law, at any private sale. 
  

 15 

 (c) use, operate, consume and sell the Collateral in its possession as appropriate for the
purpose of performing the Grantor’s obligations with respect thereto to the extent necessary to satisfy the obligations of the Grantor. 
 (d) recover from the Grantor the reasonable costs and expenses (including, attorneys’ fees) incurred or paid by the Secured Party in exercising any right, power or remedy provided by law or this Security Agreement (including,
the reasonable costs and expenses incurred in assembling, taking, improving or selling the Collateral or any part thereof); 
 (e)
require the Grantor to promptly assemble the Collateral and all information, books, records, and other materials relating to the Collateral and make such available to Secured Party at a place to be designated by Secured Party; 
 (f) enter onto the property where any Collateral is located and take possession thereof with or without judicial process; 
 (g) cure any breach, default or improper termination of any agreement, contract, lease or license of the Grantor that is included or encompassed
in the Collateral; 
 (h) substitute itself for the Grantor in any proceeding or lawsuit included or encompassed within, arising
from, related to or connected with the Collateral or Secured Party’s rights and interests in it or commence, on behalf of the Grantor and in the Grantor’s name, any proceeding or lawsuit to protect the Collateral or Secured Party’s
rights and interests in it; and 
 (i) prepare any Collateral for disposition in any manner and to the extent the Secured Party deems
appropriate. The Grantor shall be given ten (10) business days prior written notice of the time and place of any public sales or of the time after which any private sales or other intended dispositions are to be made, which notice the Grantor
hereby agrees shall be deemed reasonable notice thereof; provided, however, Secured Party shall not be required to give such notice in the case of any Collateral that the Secured Party in good faith determines to be declining speedily in value. The
Secured Party shall not be obliged to make any sale of Collateral regardless of notice of sale having been given, the Secured Party may adjourn any public or private sale from time to time by announcement at the time and place fixed therefore, and
such sale may, without further notice, be made at the time and place it was so adjourned. Upon any sale or other disposition pursuant to this Security Agreement, the Secured Party shall have the right to deliver, assign, and transfer to the
purchaser thereof the Collateral or portion thereof so sold or disposed of by the Secured Party. Each purchaser at any such sale or other disposition (including the Secured Party) shall hold the Collateral free from any claim or right of whatever
kind, including any equity or right of redemption of the Grantor. 
 (j) subject to preexisting rights and licenses and applicable
law, license or sublicense, as applicable, whether on an exclusive or non-exclusive basis, any Intellectual Property Collateral owned by or licensed to the Grantor for such term and on such conditions and in such manner as the Secured Party shall in
its sole judgment determine. 
 (k) If the Grantor fails to perform or comply with any of its agreements contained herein, after the
occurrence and during the continuance of an Event of Default, the Secured Party, at its option, but without any obligation so to do, may perform or comply, or otherwise cause performance or compliance, with such agreement. 
  

 16 

 5.2 Application of Proceeds. All payments received and amounts realized by Secured Party shall be
promptly applied and distributed by the Secured Party in the following order of priority: 
 (i) first, to the payment of all costs
and expenses, including reasonable legal expenses and attorneys fees, incurred or made hereunder by Secured Party, including any such costs and expenses of foreclosure or suit, if any, and of any sale or the exercise of any other remedy under this
Section 6, and of all taxes, assessments or liens superior to the lien granted under this Agreement; and 
 (ii) second, to the
payment or satisfaction to Secured Party of the amounts and obligations then owing under the Note, the Purchase Agreement or this Agreement. 
 5.3 Deficiency. The Grantor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the Collateral are insufficient to pay the Secured Obligations and the fees and disbursements of any attorneys
employed by the Secured Party or to collect such deficiency. 
 5.4 License of Intellectual Property. For the purpose of enabling the
Secured Party to exercise rights and remedies hereunder, at such time as the Secured Party shall be lawfully entitled to exercise such rights and remedies pursuant to the terms and conditions hereof, and for no other purpose, Grantor shall be deemed
to have granted to Secured Party, to the extent assignable, an irrevocable, non-exclusive license or sublicense, as applicable (exercisable without payment of royalty or other compensation to Grantor) to use, assign, license or sublicense any
Intellectual Property Collateral now owned or hereafter acquired by Grantor, wherever the same may be located, including in such license reasonable access to all media in which any of the licensed items may be recorded or stored and to all computer
programs used for the compilation or printout thereof, Grantor hereby releases Secured Party from any claims, causes of action and demands at any time arising out of or with respect to any actions taken or omitted to be taken by Secured Party under
the powers of attorney granted in this Agreement other than actions taken or omitted to be taken through Secured Party’s gross negligence or willful misconduct, as determined by a final determination of a court of competent jurisdiction.

 5.5 No Duty of Secured Party. The powers conferred upon the Secured Party hereunder are solely to protect its interest in the
Collateral and shall not impose any duty upon it to exercise any such powers. Except for the safe custody of any Collateral in its possession and the accounting for moneys actually received by it hereunder, shall have no duty as to any Collateral or
as to the taking of any necessary steps to preserve rights against prior parties or any other rights pertaining to any Collateral. Grantor hereby agrees to indemnify the Secured Party against all losses, resulting from any breach of Grantor’s
representations, warranties, covenants or agreements under this Agreement. 
 5.6 Power of Attorney. Grantor hereby irrevocably
appoints the Secured 
  

 17 

 Party, effective only upon the occurrence and during the continuance of an Event of Default, as its attorney-in-fact and
proxy, with full authority in the place and stead of Grantor and in the name of Grantor or otherwise, from time to time in the Secured Party’s discretion, to take any action and to execute any instrument which the secured party may reasonably
deem necessary or advisable to accomplish the purposes of this Agreement including (i) to ask, demand, collect, sue for, recover, compound, receive and give acquaintance and receipts for moneys due and to become due under or in respect of any
Collateral, (ii) to receive, endorse, and collect any drafts or other instruments, documents and chattel paper in connection with clause (i) above, (iii) to file any claims or take any action or institute any proceedings which the
Secured Party may reasonably deem necessary or desirable to enforce the rights of the Secured Party with respect to any Collateral, (iv) with respect to any Intellectual Property Collateral of the Grantor, execute and deliver, and have
recorded, any and all agreements, instruments, documents and papers as the Secured Party may request to evidence the Secured Party’s security interest in such Intellectual Property Collateral and the goodwill and general intangibles of Grantor
relating thereto or represented thereby; and (vi) to execute assignments, licenses and other documents to enforce the rights of the Secured Party with respect to any Collateral. This power shall be coupled with an interest and shall be
irrevocable until the date on which all of the Secured Obligations have been satisfied and performed in full upon the termination of this Agreement. 
 5.7 Remedies Cumulative. The Secured Party’s rights and remedies under this Agreement, the Loan Documents, and all other agreements shall be cumulative. The Secured Party shall have all other rights and
remedies not inconsistent herewith as provided under the Code, by law, or in equity. No exercise by the Secured Party of one right or remedy shall be deemed an election, and no waiver by the Secured Party of any Event of Default on Grantor’s
part shall be deemed a continuing waiver. No delay by Secured Party shall constitute a waiver, election, or acquiescence by it. No waiver by the Secured Party shall be effective unless made in a written document signed on behalf of the Secured Party
and then shall be effective only in the specific instance and for the specific purpose for which it was given. 
 6. Miscellaneous

 6.1 Notices. Unless otherwise provided in this Agreement, all notices or demands by any party relating to this Agreement or any
other agreement entered into in connection herewith shall be in writing and (except for financial statements and other informational documents which may be sent by first-class mail, postage prepaid) shall be personally delivered or sent by a
recognized overnight delivery service, certified mail, postage prepaid, return receipt requested, or by telefacsimile to the Grantor or to the Secured Party, as the case may be, at its addresses set forth below: 
  

			
	If to the Grantor:	  	Monogram Biosciences Inc.
		  	345 Oyster Point Boulevard
		  	South San Francisco, California 94080
		
		  	Attention:       Chief Executive Officer
		  	Facsimile No: +1 650-635-1111

  

 18 

			
	with a copy to:	  	Attention:       General Counsel
		  	Facsimile No.: +1 650-635-1111
		
	If to the Secured Party:	  	Pfizer Inc.
		  	235 East 42nd Street
		  	New York, New York 10017
		
		  	Attention: President, Pfizer Human Health
		  	Facsimile No.: +1 212-808-8652
		
	with a copy to:	  	Attention:       Vice Chairman, Executive Vice President and General Counsel
		  	Facsimile No.: +1 212-808-8924

 The parties hereto may change the address at which they are to receive notices hereunder, by
notice in writing in the foregoing manner given to the other. 
 7. GOVERNING LAW 
 This Agreement shall be governed by, and construed in accordance with, the laws of the State of New York, without regard to principles of conflicts of law. 
 8. SUBMISSION TO JURISDICTION 
 8.1
Submission to Jurisdiction. In accordance with Section 5-1402 of the New York General Obligations Law, the Grantor hereby irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of the Supreme
Court of the State of New York sitting in New York County and of the United States District Court of the Southern District of New York, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this
Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State
court or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in
any other manner provided by law. Nothing in this Agreement shall affect any right that the holder may otherwise have to bring any action or proceeding relating to this Agreement against the grantor or its properties in the courts of any
jurisdiction. 
 8.2 Waiver of Venue and Inconvenient Forum. The Grantor hereby irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any court referred to in Section 8.1. Each of
the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 
  

 19 

 8.3 Service of Process. Grantor irrevocably consents to service of process in the manner provided
for notices in Section 6.1. This Section 8.3 does not affect any other method of service allowed by law. Nothing in this Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.

 8.4 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT
NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER
PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 8. 
 8.5 Successors and Assigns. This Agreement shall bind and inure to the benefit of the respective successors and permitted assigns of each of the parties (and for the avoidance of doubt references herein to a party shall also be
deemed to also refer to successors and assigns); provided, however, that neither this Agreement nor any rights hereunder may be assigned by Grantor without the Secured Party’s prior written consent, which consent may be granted or withheld in
the Secured Party’s sole discretion. The Secured Party shall have the right without the consent of or notice to Grantor to sell, transfer, negotiate, or grant participation in all or any part of, or any interest in, the Secured Party’s
obligations, rights and benefits hereunder. 
 8.6 Severability of Provisions. Each provision of this Agreement shall be severable
from every other provision of this Agreement for the purpose of determining the legal enforceability of any specific provision. 
 8.7
Amendments in Writing, Integration. This Agreement cannot be amended or terminated orally. All prior agreements, understandings, representations, warranties, and negotiations between the parties hereto with respect to the subject matter of this
Agreement, if any, are merged into this Agreement and the Loan Documents. 
 8.8 Counterparts. This Agreement may be executed in any
number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Agreement.

  

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 IN WITNESS WHEREOF, the parties have executed this Agreement
on the date set forth above. 
  

			
	GRANTOR
	
	MONOGRAM BIOSCIENCES, INC.
		
	By:	 	 /s/ William D. Young

	Name:	 	William D. Young
	Title:	 	Chief Executive Officer
	
	SECURED PARTY
	
	PFIZER INC.
		
	By:	 	 /s/ Marie-Caroline Sainpy

	Name:	 	Marie-Caroline Sainpy
	Title:	 	Senior Vice President USP Marketing and Worldwide Commercial Development

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