Document:

Exhibit 10.1

Exhibit 10.1

LICENSE AGREEMENT

This License Agreement (“Agreement”) is made and entered into this 9th of July,
2010 (the “Effective Date”), by and between ACCELR8 TECHNOLOGY CORPORATION, a Colorado corporation,
having its principal office at 7000 North Broadway, Bldg. 3-307, Denver, CO 80221 (hereinafter
“Accelr8”) and NANOSPHERE INC., a Delaware coporation, having its principal office at 4088
Commercial Avenue, Northbrook, IL 60062 (hereinafter “Nanosphere”). Accelr8 and Nanosphere may be
referred to herein individually as a “Party” and collectively as the “Parties.”

WITNESSETH

WHEREAS, Accelr8 has developed proprietary surface chemistry and coating technology; and

WHEREAS, Nanosphere desires to obtain a license to utilize such technology in a
product that it will distribute to certain markets exclusively on its proprietary analytical
platform, and Accelr8 so agrees, subject to the terms and conditions of this Agreement.

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants and
agreements contained herein, the Parties, intending to be legally bound, do hereby agree as
follows:

ARTICLE 1. DEFINITIONS

As used herein, the following terms shall have the following meanings:

	1.01	 	“Accelr8 Intellectual Property” means the Accelr8 Know-How and Accelr8 Patents.

	1.02	 	“Accelr8 Know-How” means all tangible and intangible (a) techniques, technology, practices,
trade secrets, inventions (whether patentable or not), methods, processes (including
manufacturing and quality control processes), knowledge, know-how, skill, experience, test
data and results (including pharmacological, toxicological and clinical test data and
results), analytical and quality control data, results or descriptions, software and
algorithms, and (b) compounds, compositions of matter, complexes and physical, biological or
chemical material, which exist as of the Effective Date and are related to Accelr8’s
proprietary surface chemistry and coating technology.

	1.03	 	“Accelr8 Patents” means (a) those Patents and Patent Applications listed in Appendix
A, and (b) any Patents owned or licensed (with a right of sublicense) by Accelr8 that
cover the Process Improvements.

	1.04	 	“Affiliate” means every corporation, or entity, which, directly or indirectly, or through one
or more intermediaries, controls, is controlled by, or is under common control with a Party,
as well as every officer, director, agent and representative of any such corporation or
entity. For the purposes of the foregoing definition, the word “control” (including, with
correlative meaning, the terms “controlled by” or “under common control with”) 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 entity, whether by the
ownership of at least fifty percent (50%) of the voting stock of such entity, or by contract
or otherwise.

 

 

 

	1.05	 	“Calendar Quarter” means any period of three (3) consecutive months ending on March 31, June
30, September 30 and December 31.

	 
	1.06	 	“Coatings” means surface films used to immobilize molecules and other materials for the
purpose of analysis.

	 
	1.07	 	“Confidential Information” has the meaning set forth in §7.01.

	 
	1.08	 	“Effective Date” means the date specified in the first paragraph of this Agreement.

	 
	1.09	 	“Improvements” means inventions, discoveries, works of authorship, trade secrets, know-how or
developments, whether or not patentable, that are made, conceived, reduced to practice or
otherwise generated during the Term, which are improvements, modifications or other
developments to the Licensed Product (including, without limitation, the manufacturing
processes for such products and/or the OptiChem® coating technology).

	 
	1.10	 	“Inventions” means all Improvements, inventions, discoveries, processes, works of authorship,
trade secrets and other know-how, developments or the like, whether or not patentable, that
are made, conceived, reduced to practice or otherwise generated solely by a Party or jointly
by the Parties as a result of this Agreement (including, without limitation, Inventions
related to the Licensed Product or its manufacture).

	 
	1.11	 	“License Fee” has the meaning set forth in §5.01.

	 
	1.12	 	“Licensed Product” means the Accelr8 product described in Appendix B and applied to any
Nanosphere Product.

	 
	1.13	 	“Nanosphere Product” means a manufactured discrete physical article that completes the
production process, for any use as a finished functional article that is not discarded as
in-process waste, for whatever manner of use after said production, including but not limited
to any manner of sale, product development, product trials, or free goods for evaluation by a
customer, distributor, or commercial collaborator.

	 
	1.14	 	“Patents” means:

	 
	 	 	(a) United States and foreign patents and/or patent applications and/or provisional patent
applications;

	 
	 	 	(b) United States and foreign patents issued from the applications described in (a) above
and from divisionals and continuations and continuations-in-part of these applications;

 

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	 	 	(c) U.S. and foreign continuations and continuation-in-part applications, and the resulting
patents of any of the U.S. and foreign applications described in (a) or (b) above or this
paragraph (c); and

	 
	 	 	(d) any reissues of United States and foreign patents described in (a), (b) or (c) above.

	1.15	 	“Process Improvements” means any Improvements to the processes for the manufacture of the
Licensed Product.

	 
	1.16	 	“Term” means the term of this Agreement, as determined in accordance with Article 10.

	 
	1.17	 	“Third Party” means any entity or person other than Accelr8 or Nanosphere.

ARTICLE 2. GRANT OF RIGHTS

	2.01	 	Accelr8 hereby grants, and Nanosphere accepts, during the Term and subject to the terms and
conditions of this Agreement, a worldwide, non-transferable (except as provided in §12.01),
fee-bearing non-exclusive license under the Accelr8 Intellectual Property to make, have made,
use, sell, offer to sell, import, have imported, export, and distribute the Licensed Product
exclusively as applied to Nanosphere Products, including products produced by Nanosphere for
any Third Party where said Third Party uses, sells, offers to sell, imports, has imported,
exports, has exported and/or distributes said products.

	 
	2.02	 	Accelr8 explicitly grants to Nanosphere, during the Term and subject to the terms and
conditions of this Agreement, the right to contract with a Third Party to manufacture the
Licensed Product and apply it exclusively to Nanosphere Products, provided that Nanosphere
assures compliance of said Third Party with the licensing and confidentiality terms of this
Agreement.

	 
	2.03	 	Accelr8 shall provide to Nanosphere by 60 days after the Effective Date of the Agreement with
all information necessary to produce the Licensed Product, including descriptions or
specifications of machines, components and materials used for the production. Accelr8 shall
also provide to Nanosphere by 75 days after the Effective Date of the Agreement with a
detailed and complete documentation of Accelr8’s production processes.

	 
	2.04	 	The license and rights granted by Accelr8 in §2.01 are subject to the following:

	 
	 	 	(a) Nanosphere may not sublicense the license and rights granted to it hereunder to any
Third Party, including, any Affiliate, except under Article 2.02;

	 
	 	 	(b) the Licensed Product must be applied to a proprietary Nanosphere Product including
products produced by Nanosphere for any Third Party where said Third Party uses, sells,
offers to sell, imports, has imported, exports, has exported and/or distributes said
products;

	 
	 	 	(c) the Nanosphere Product that includes the Licensed Product must be appropriately labeled
for use and sale with respect to applicable patent law

 

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	2.05	 	Accelr8 hereby reserves all rights in and to the Accelr8 Intellectual Property not expressly
granted to Nanosphere hereunder, including, without limitation, the right to make, have made,
use, sell, offer to sell, import and export the Accelr8 product of Appendix B.

ARTICLE 3. COMMERCIALIZATION

	3.01	 	Each of the Parties will provide to the other Party, on a time and materials basis as
reasonably requested by the other Party, technical support and consulting services related to
the Licensed Product subject to mutual agreement on applicable terms and conditions as
represented by a written letter of agreement.

ARTICLE 4. ADDITIONAL AGREEMENTS

	4.01	 	None.

ARTICLE 5. PAYMENTS AND PAYMENT TERMS

	5.01	 	License Fee. Nanosphere shall pay to Accelr8 a non-refundable fee of one-million
eight-hundred and fifty dollars ($1,850,000) in four annual installments. On the Effective
Date, Nanosphere shall pay to Accelr8 a non-refundable installment of one-hundred fifty
thousand Dollars ($150,000). Upon the first anniversary of the Effective Date (July 9th, 2011)
Nanosphere shall pay to Accelr8 a non-refundable installment of three-hundred and fifty
thousand dollars ($350,000). Upon the second anniversary of the Effective Date (July 9th,
2012) Nanosphere shall pay to Accelr8 a non-refundable installment of six-hundred thousand
dollars ($600,000). Upon the third anniversary of the Effective Date (July 9th, 2013)
Nanosphere shall pay to Accelr8 a non-refundable installment of seven-hundred and fifty
thousand dollars ($750,000). Failure to complete any installment payment in a timely manner
shall result in notice of Termination by Accelr8 to Nanosphere under §10.02 and subsequent
effects of Termination. If all the listed patents in APPENDIX A and patents that issue there
from are declared invalid during the Term of this Agreement, Nanosphere will not be obligated
to make any remaining payments.

	 
	5.02	 	Nanosphere shall pay to Accelr8 a one-time fee of fifteen-thousand Dollars ($15,000) for the
transfer of technology of §2.02 to Nanosphere (“Technology Transfer”), payable within thirty
(30) days of the Effective Date. Such Technology Transfer will be completed upon Accelr8’s
statement of delivery of the documentation of §2.02.

	 
	5.03	 	Accelr8 agrees to provide additional consulting services for technical support at a rate of
two-hundred Dollars ($200) per hour, one (1) day minimum, for the term of this Agreement, if
and as requested by Nanosphere.

	 
	5.04	 	All payments hereunder shall be payable in U.S. Dollars. When conversion of payments from any
foreign currency is required, such conversion shall be at an exchange rate equal to the rate
of exchange for the currency of the country from which the fees are payable as published by
The Wall Street Journal, East Coast Edition, on the final day of the Calendar Quarter for
which a payment is due. In any country where conversion of the local currency is blocked and
such currency cannot be removed from the country, at the

 

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	 	 	election of Accelr8 fees accrued in that country may be paid to Accelr8 in that country in
local currency by deposit in a local bank designated by Accelr8. All payments other than
those specified in the preceding sentence shall be payable to Accelr8 by wire transfer, in
immediately available funds, to a bank account as may be designated by Accelr8 in writing
from time to time.

	 
	5.05	 	If laws or regulations require that taxes be withheld from payments due to Accelr8 hereunder,
Nanosphere shall have the right to (a) deduct such taxes from the payment due to Accelr8
hereunder, (b) timely pay the taxes to the proper taxing authority, and (c) send evidence of
the obligation together with proof of tax payment (including certification of receipt by the
taxing authority) to Accelr8 within thirty (30) days following such tax payment.
Notwithstanding the foregoing, Nanosphere shall cooperate with Accelr8 and shall execute and
deliver such documents and take such other actions as Accelr8 may reasonably request, for the
purpose of (x) obtaining an exemption from the tax withholding requirements of any foreign
country, (y) obtaining a refund of any taxes actually withheld by Nanosphere and paid to a
foreign country pursuant to tax withholding requirements, and (z) otherwise seeking to
lawfully mitigate the amount of taxes required to be withheld from any payments due to Accelr8
hereunder pursuant to applicable foreign tax law.

	 
	5.06	 	Any amounts not paid by Nanosphere when due under this Agreement shall be subject to interest
from and including the date payment is due through and including the date upon which Accelr8
has actually received payment at a rate equal to the sum of two percent (2%) plus the prime
rate of interest quoted in the Money Rates section of The Wall Street Journal, East Coast
Edition, calculated daily on the basis of a 365-day year, or similar reputable data source,
or, if lower, the highest rate permitted under applicable law. The payment of such interest
shall not limit Accelr8 from exercising any other rights or remedies it may have as a
consequence of the lateness of any payment.

ARTICLE 6. INTELLECTUAL PROPERTY; PROSECUTION; COSTS AND ENFORCEMENT

	6.01	 	Ownership of Inventions and Information. Ownership of Inventions shall be determined
in accordance with the following rules:

	 
	 	 	(a) Nanosphere shall own any Inventions (including all intellectual property rights therein)
that it solely makes or conceives (“Nanosphere Inventions”).

	 
	 	 	(b) Accelr8 shall own any Inventions (including all intellectual property rights therein)
that it solely makes or conceives.

	 
	 	 	(c) For any Inventions (including all intellectual property rights therein) that the Parties
jointly make or conceive (“Joint Inventions”), the Parties shall jointly own any Joint
Inventions, subject to the restrictions in §6.01(d).

	 
	 	 	(d) For all Joint Inventions that are jointly owned by the Parties, each Party is free to
utilize such Joint Invention without accounting or reporting to the other Party, except that
neither Party will assign, license, sublicense, sell, distribute or otherwise transfer any
such Joint Inventions to any competitor of the other Party.

 

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	6.02	 	Prosecution and Maintenance of Patents. Each Party shall control the preparation,
filing, prosecution and maintenance (including without limitation conducting or participating
in interferences or oppositions), at its own expense, of any and all Patents that it owns. The
Parties shall jointly control the preparation, filing, prosecution and maintenance (including
without limitation conducting or participating in interferences or oppositions), of any and
all Patents that are jointly owned by the Parties (“Joint Patents”), and to equally share all
outside legal fees and expenses associated therewith. However, if a Party desires not to file,
prosecute, issue or maintain an application for a Joint Patent in any particular country or
jurisdiction, such Party shall notify the other Party of its intention not to do so, and with
such notice shall relinquish its interest in the same (i.e., shall have no further ownership
interest in, license or right to use, or any costs associated therewith) in such particular
country or jurisdiction, and the other Party shall have the right, but not the obligation to
file, prosecute, issue or maintain in its name such application or patent embodying a Joint
Patent in such particular country or jurisdiction at its own expense. Accelr8 hereby grants to
Nanosphere a nonexclusive, nontransferable, royalty-free license to use, copy and modify the
Accelr8 Patents for the purposes of maintaining and supporting the Accelr8 Patents. Nanosphere
covenants and agrees that it will not exercise the license rights granted in this section
unless and until Accelr8 materially breaches its maintenance obligations under this Agreement.

	 
	6.03	 	Cooperation of the Parties. At the reasonable request of the responsible Party, the
other Party agrees to reasonable efforts to cooperate in the preparation, filing, prosecution,
maintenance and defense of any Patents under this Agreement and in the obtaining and
maintenance of any patent extensions, supplementary protection certificates and the like with
respect to any Patent claiming an Invention. Such cooperation includes, but is not limited to:

	 
	 	 	(a) executing all papers and instruments (including assignment documents), or requiring its
employees or contractors, to execute such papers and instruments, so as to effectuate the
ownership of inventions set forth in §6.01, and Patents claiming such inventions, and to
enable the responsible Party to apply for and to prosecute patent applications in any
country; and

	 
	 	 	(b) promptly informing the other Party of any matters coming to the first Party’s attention
that may affect the preparation, filing, prosecution or maintenance of any such patent
applications.

 

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	6.04	 	Infringement by Third Parties. Each Party agrees to inform the other Party promptly
in writing of any suspected infringement of the Accelr8 Technology, the Licensed Product
and/or the Patents resulting from any Inventions. The Party owning the applicable Patent shall
have the sole right to institute suit against such Third Party, provided that the other Party
shall provide all reasonable cooperation and assistance that may be requested by the first
Party, at the first Party’s expense, in any such suit, which cooperation may include joining
in such suit.

ARTICLE 7. CONFIDENTIALITY AND PUBLICATIONS

	7.01	 	In the performance of this Agreement, each Party may disclose directly or indirectly to the
other party certain confidential information, orally or in writing or both, including, but not
be limited to, marketing plans, cost or price data, customer or supplier information,
technical information, patent applications, and patent prosecution documents regarding the
Accelr8 Technology or the Licensed Product (collectively, “Confidential Information”). Except
to the extent expressly authorized by this Agreement or otherwise agreed in writing by the
disclosing Party, the Parties agree that, during the Term for at least five (5) years and
thereafter, the receiving Party shall keep confidential and shall not publish or otherwise
disclose and shall not use for any purpose other than as expressly provided for in this
Agreement any Confidential Information. A Party may use such Confidential Information only to
the extent required to accomplish the purposes of this Agreement. Neither Party will use any
Confidential Information of any other Party for any purpose or in any manner that would
constitute a violation of any laws or regulations, including, without limitation, the export
control laws of the United States. Neither Party may reproduce any Confidential Information of
any other Party in any form except as required to accomplish the intent of this Agreement.
Neither Party may disclose Confidential Information of any other Party to any employee, agent,
consultant, or sublicensee who does not have a reasonable need for such information for
purposes of performance under this Agreement and who is not subject to binding obligations of
confidentiality and limited use at least as restrictive as those of this Article 8. In
particular, neither Party will disclose to a Third Party any legal opinions with regard to
Accelr8’s Intellectual Property without first obtaining a “Community of Interest” agreement
from such Third Party that includes Accelr8 as named in the Community of Interest. Each Party
will use at least the same standard of care as it uses to protect its own proprietary or
confidential information of a similar nature to prevent unauthorized disclosures or uses of
Confidential Information of the other Party, but in no event less than reasonable care. Each
Party will promptly notify the disclosing Party upon discovery of any unauthorized use or
disclosure of the Confidential Information of the other Party.

	 
	7.02	 	The obligations of confidentiality and non-use of Confidential Information set forth in §7.01
above shall not apply to any information that, as shown by competent proof:

	 
	 	 	(a) is now, or hereafter becomes, through no act or failure to act on the part of the
receiving Party in breach hereof, generally known or available;

	 
	 	 	(b) is known by the receiving Party at the time of receiving such information;

 

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	 	 	(c) is hereafter furnished to the receiving Party by a Third Party, as a matter of right and
without restriction on disclosure;

	 
	 	 	(d) is independently developed by the receiving Party without use of or reference to
Confidential Information of the other Party; or

	 
	 	 	(e) is the subject of a prior, express, written permission to disclose provided by the
disclosing Party.

	 
	 	 	The Parties agree that the material financial terms of this Agreement shall be considered
Confidential Information of both Parties. Notwithstanding the foregoing, the Parties may
disclose such terms to bona fide potential corporate partners, potential investors or merger
or acquisition partners, and to financial underwriters and legal and financial advisors;
provided that all such disclosures shall be made only to such parties under obligations of
confidentiality and non-use and provided the other Party is informed to whom such
disclosures will be made.

	 
	7.03	 	Each of the Parties may disclose Confidential Information belonging to the other Party to the
extent such disclosure is reasonably necessary for complying with applicable court orders or
governmental regulations.

	 
	 	 	Notwithstanding the foregoing, in the event that a Party is required to make a disclosure of
any other Party’s Confidential Information pursuant to §7.03 it will give reasonable advance
notice to the other Party of such disclosure and use efforts to secure confidential
treatment of such information at least as diligent as the other Party would use to protect
its own confidential information, but in no event less than reasonable efforts. In any
event, each of the Parties agrees to take all reasonable action to avoid disclosure of
Confidential Information hereunder. The Parties will consult with each other on the
provisions of this Agreement to be redacted in any filings made by the parties with the
United States Securities and Exchange Commission or as otherwise required by law.

	 
	7.04	 	Each Party shall have the right to review and comment on any material proposed for disclosure
or publication by the other Party, such as by oral presentation, manuscript or abstract, which
utilizes Confidential Information of the non-publishing Party. Before any such material is
submitted for publication, the Party proposing publication shall deliver a complete copy to
the non-publishing Party whose Confidential Information is utilized therein, at least thirty
(30) days prior to submitting the material to a publisher or initiating any other disclosure.
The non-publishing Party shall review any such material and give its comments to the Party
proposing publication within thirty (30) days of the delivery of such material to the
non-publishing Party. With respect to oral presentation materials and abstracts, the
non-publishing Party shall make reasonable efforts to expedite review of such materials and
abstracts, and shall return such items as soon as practicable to the Party proposing
publication with appropriate comments, if any, but in no event later than thirty (30) days
from the date of delivery to the non-publishing Party. The publishing Party shall comply with
the non-publishing Party’s requests to delete references to the non-publishing Party’s
Confidential Information in any such material and agrees to delay any submission for
publication or other public disclosure for a period of up to an additional ninety (90) days for the purpose of preparing and filing appropriate patent
applications.

 

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	7.05	 	The Parties shall issue a mutually acceptable press release regarding this Agreement and the
Parties’ collaboration upon execution of this Agreement.

ARTICLE 8. REPRESENTATIONS, WARRANTIES AND COVENANTS

	8.01	 	ACCELR8 IS LICENSING AND PROVIDING THE ACCELR8 TECHNOLOGY ON AN “AS IS” BASIS, AND IT MAKES
NO REPRESENTATIONS NOR EXTENDS ANY WARRANTIES OF ANY KIND, EITHER EXPRESS OR IMPLIED, WITH
RESPECT TO THE ACCELR8 TECHNOLOGY OR THE USE, SALE, IMPORT, EXPORT OR OTHER DISPOSITION BY
NANOSPHERE, ITS AFFILIATES, SUBLICENSEE(S), OR THEIR VENDEES OR OTHER TRANSFEREES OF LICENSED
PRODUCTS. THERE ARE NO EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE, OR THAT THE USE, MANUFACTURE, SALE OR IMPORT OF LICENSED PRODUCTS WILL NOT
INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK, SERVICE MARK, OR OTHER RIGHTS OF ANY THIRD PARTY.

	 
	8.02	 	Accelr8 and Nanosphere each hereby represent and warrant to the other as follows:

	 
	 	 	(a) it is duly organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation or formation, and has full corporate or other power and
authority and the legal right to (i) own and operate its property and assets, (ii) carry on
its business as it is now being conducted and as contemplated in this Agreement, and (iii)
enter into this Agreement and to carry out the provisions hereof;

	 
	 	 	(b) it is duly authorized to execute and deliver this Agreement and to perform its
obligations hereunder, and the person or persons executing this Agreement on its behalf has
been duly authorized to do so by all requisite corporate or partnership action; and

	 
	 	 	(c) this Agreement is legally binding upon it and enforceable in accordance with its terms,
and (ii) the execution, delivery and performance of this Agreement by it does not conflict
with any written agreement, instrument or understanding to which it is a party or by which
it may be bound, or violate any material law or regulation of any court, governmental body
or administrative or other agency having jurisdiction over it.

	 
	8.03	 	Nothing in this Agreement shall be construed as:

	 
	 	 	(a) A warranty or representation by Accelr8 to the validity or scope of any of the Accelr8
Patents;

	 
	 	 	(b) A warranty or representation that the Accelr8 Technology or anything made, used, sold,
imported or otherwise disposed of under the licenses granted hereunder (including, without
limitation, the Licensed Product) will or will not infringe patents, copyrights or other
rights of Third Parties. However Accelr8 has, as of the Effective Date, no knowledge of any
such infringements and no actions have been alleged or filed against Accelr8 with respect to claims of invalidity of the Licensed Patents or
infringement;

 

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	 	 	(c) An obligation to furnish any know-how or technology not agreed to in this Agreement, to
bring or prosecute actions or suits against Third Parties for infringement or to provide any
services other than those specified in this Agreement.

	 
	8.04	 	Nanosphere covenants that it shall:

	 
	 	 	(a) cause Licensed Products sold under this Agreement to be marked with the notice of the
patent numbers or patent pending, as may be legally required.

	 
	 	 	(b) comply with all laws and regulations of the United States and any other country as
appropriate concerning or controlling the import or export of Licensed Products.

	 
	 	 	(c) comply with all laws and regulations of the country as concerned with regard to the
manufacture, marketing, promotion or distribution of Licensed Products.

	 
	 	 	(d) appropriately label Nanosphere Products for use and sale, including, without limitation,
any restrictions on use in the instructions for use.

	 
	8.05	 	Except in connection with liability for breach of Article 8, no Party shall be entitled to
recover from the other Party any special, incidental, indirect, consequential or punitive
damages in connection with this Agreement or any license granted hereunder; provided, however,
that this §8.05 shall not be construed to limit any Party’s indemnification obligations under
Article 9 or any remedies available at law for a violation of a Party’s intellectual property
or proprietary rights.

ARTICLE 9. INDEMNIFICATION

	9.01	 	Nanosphere Indemnification. Nanosphere shall indemnify and hold Accelr8 and its
Affiliates, and their respective officers, directors, employees, consultants and agents (each,
an “Accelr8 Indemnitee”) harmless from and against all liability, damages, losses, costs and
expenses including reasonable attorneys fees and expenses (collectively, “Losses”), in
connection with a claim asserted by a Third Party for death, personal injury, illness,
property damage, noncompliance with applicable laws and any other Third Party claim,
proceeding, demand, (each, a “Third Party Claim”) in connection with or arising out of:

	 
	 	 	(a) any use of the Accelr8 Technology in a manner not expressly permitted under the licenses
granted to Nanosphere hereunder;

	 
	 	 	(b) the design, manufacture, use, production, marketing, sale or distribution of Licensed
Products except where such Third Party Claim is based solely on allegation(s) that
Nanosphere’s use of the Accler8 Intellectual Property as allowed by this Agreement infringes
patents, copyrights or other rights of such Third Party;

 

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	 	 	(c) any representation or warranty made by Nanosphere in Article 8 of this Agreement; or

	 
	 	 	(d) the gross negligence or willful misconduct of Nanosphere; or

	 
	 	 	(e) any claims that the manufacture, use, sale or import of the Licensed Products solely
done by or through Nanosphere infringes or violates any patent or other rights of any Third
Party. However, no indemnification applies by Nanosphere for Accelr8 and its Affiliates, and
their respective officers, directors, employees, consultants and agents (each, an “Accelr8
Indemnitee”) for any actions arising from, but not limited to, §2.04.

	 
	9.02	 	Control of Defense. Accelr8 shall give prompt written notice of a Third Party Claim
to Nanosphere and Nanosphere shall defend against such Third Party Claim with the reasonable
cooperation of the Accelr8 Indemnitee; provided that (i) Accelr8 shall have the exclusive
right to control the defense or settlement of any Third Party Claim involving the validity,
enforceability or scope of any Accelr8 Intellectual Property or Patents owned by Accelr8
notwithstanding anything to the contrary herein, and (ii) subject to item (i) above, the
Accelr8 Indemnitee will not settle any such Third Party Claim without the prior written
consent of Nanosphere, which consent shall not be unreasonably withheld, conditioned or
delayed. Each Accelr8 Indemnitee shall have the right to be present in person or through
counsel at substantive legal proceedings relating to the applicable Third Party Claim.

ARTICLE 10. DURATION, TERMINATION AND CONVERSION

	10.01	 	Term. This Agreement shall become effective as of the Effective Date with a term
ending on the expiration date of the last Patent issued as defined by this Agreement, unless
earlier terminated pursuant to §10.02

	 
	10.02	 	Termination. This Agreement shall terminate if either Party gives written notice to
the other Party of the other Party’s material breach of the terms of this Agreement, and the
other Party fails to cure such breach within thirty (30) days of its receipt of such notice.

	 
	10.03	 	Effect of Termination.

	 
	 	 	(a) Upon termination of this Agreement, the licenses and rights granted to Nanosphere
hereunder shall immediately terminate manufacturing of Nanosphere Products that use the
Licensed Product, however, Nanosphere retains the rights to use or sell all finished goods
and then current work in process

	 
	 	 	(b) Within thirty (30) days following the expiration or termination of this Agreement,
each Party shall deliver to the other Party any and all copies of any documents or tangible
items that contain any Confidential Information of the other Party in its possession or
under its control, except that each party may keep one copy of all such Confidential
Information for its legal records.

	 
	10.04	 	Accrued Rights and Obligations; Survival. Expiration or termination of this
Agreement shall not affect any accrued rights or obligations of any Party. The provisions of
Articles 5-9 and 11-12, and §§2.04, 5.02-5.06, and 10.03-10.06 of this Agreement shall survive
expiration or termination of this Agreement for any reason (subject to any subsequent dates
of termination referred to in such individual Articles and Sections).

 

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	10.05	 	Exercise of Right to Terminate. If any Party elects to terminate this Agreement
pursuant to the terms of this Article 11, such Party will not be required to compensate the
other Party for any damage or loss that such other Party may suffer as a result of the
terminating Party exercise of its rights under this Article 10.

	 
	10.06	 	Damages; Relief. Subject to §10.05 above, termination of this Agreement shall not
preclude either Party from claiming any other damages, compensation or relief that it may be
entitled to under the terms of this Agreement or at law or equity upon such termination.

ARTICLE 11. DISPUTE RESOLUTION

	11.01	 	In the event of any dispute arising out of or relating to this Agreement, the affected Party
shall promptly notify the other Party (“Notice Date”), and the Parties shall attempt in good
faith to resolve the matter. Any disputes not so resolved shall be referred to senior
executives of the Parties, who shall meet at a mutually acceptable time and location within
thirty (30) days of the Notice Date and shall attempt to negotiate a settlement. If the senior
executives of the Parties fail to meet within thirty (30) days of the Notice Date, or if the
matter remains unresolved for a period of sixty (60) days after the Notice Date, either Party
may at any time thereafter and upon notice to the other Party, submit such dispute to be
finally settled by arbitration administered by the American Arbitration Association in
accordance with its International Arbitration Rules, as such rules may be modified by the
following provisions of this Article 11.

	 
	11.02	 	Not later than 30 days after commencement of the arbitration, the Parties shall select one
arbitrator from the AAA’s Roster of Neutrals, provided that such arbitrator shall in any event
be a patent attorney with significant experience in the biotechnology industry. If the Parties
are unable to agree on an arbitrator, an arbitrator meeting the above qualifications shall be
selected in accordance with AAA’s rules not later than 60 days after commencement of the
arbitration. The place of the arbitration shall be Denver County, Colorado.

	 
	11.03	 	The arbitration shall be governed by the substantive laws of the State of Colorado without
regard to conflict of law rules, Title 9 of the US Code (United States Arbitration Act) and
the Commercial Arbitration Rules of the American Arbitration Association, except to the extent
expressly limited by this Article 11.

	 
	11.04	 	Each Party shall have the right to request from the arbitrators, and the arbitrators shall
order upon good cause shown, reasonable and limited prehearing discovery, including (a)
exchange of witness lists, (b) depositions under oath of named witnesses at a mutually
convenient location, (c) written interrogatories, and (d) document requests. Any dispute
regarding discovery, or the relevance or scope thereof, shall be determined by the arbitrator,
which determination shall be conclusive. All discovery shall be completed

 

12

 

	 	 	within forty five (45) days following the appointment of the arbitrator. Upon conclusion of
the pre-hearing discovery, the arbitrator shall promptly hold a hearing upon the evidence to
be adduced by the Parties and shall promptly render a written opinion and award.

	 
	11.05	 	The arbitrator will have no authority to award any damages inconsistent with the terms of
this Agreement except as may be required by statute. Judgment on the award may be entered by
any court of competent jurisdiction.

	 
	11.06	 	Each Party shall bear its own costs and expenses in relation to such arbitration, provided,
however, that the Parties shall share equally the costs and expenses of the arbitrator.

ARTICLE 12. MISCELLANEOUS

	12.01	 	Assignment. Except as expressly provided hereunder, no Party may assign or transfer
this Agreement or any rights or obligations hereunder without the prior written consent of the
other Party (which consent shall not be unreasonably withheld); provided, however, that any
Party may assign this Agreement and its rights and obligations hereunder without the other
Party’s consent to an Affiliate or in connection with the transfer or sale to a Third Party of
all or substantially all of the assets or outstanding capital stock of such Party, whether by
merger, sale of stock, or sale of assets. The rights and obligations of the Parties under this
Agreement shall be binding upon and inure to the benefit of the successors and permitted
assigns of the Parties. Any assignment not in accordance with this Agreement shall be void.

	 
	12.02	 	Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of Colorado, excluding its choice of law principles.

	 
	12.03	 	Bankruptcy Code 365(n). The Parties acknowledge that the Accelr8 Intellectual
Property is “intellectual property” for purposes of Section 365(n) of the U.S. Bankruptcy Code
and that Licensee will have the right to exercise all rights provided by Section 365(n) with
respect to the Accelr8 Intellectual Property. In the event of a filing of bankruptcy by or
against either Party, such Party is required to expeditiously decide to accept or reject a
license within a reasonable time and not oppose a motion by the other Party to compel
assumption or rejection of the license. In the event that Accelr8 materially breaches its
transfer of technology obligations to Nanosphere as set forth in §2.02 under this Agreement,
Nanosphere shall have the right to require the transfer by Accelr8 (or in the event of a
filing of bankruptcy by or against Accelr8, by the trustee) to Nanosphere of all information
and materials in deficiency and required to complete the transfer of technology (including all
embodiments thereof) as set forth in §2.02.

	 
	12.04	 	Notices. Any notice or other communication required or permitted to be given to any
Party hereto shall be in writing unless otherwise specified and shall be deemed to have been
properly given and effective: (a) on the date of delivery if delivered in person; (b) the date
of electronically confirmed facsimile transmission if during the recipient’s normal business
hours, or otherwise on the next business day of the recipient; (c) one (1) business day after
sending via next business day delivery by a nationally recognized overnight courier service; or (d) three (3) days after mailing by registered or certified
mail, postage prepaid and return receipt requested, to the Party to be notified at the
following address or facsimile number:

 

13

 

	 	 	In the case of Accelr8:

	 
	 	 	Accelr8 Technology Corporation

7000 North Broadway, Bldg 3-307

Denver, Colorado 80221

Facsimile: +1-303-863-1218

Attention: Thomas V. Geimer, Chairman and CEO

CC: President

	 
	 	 	In the case of Nanosphere:

	 
	 	 	
Nanosphere Inc.

4088 Commercial Avenue

Northbrook, Illinois 60062

Facsimile: (847) 400-9199

Attention: Winton Gibbons

CC: CFO

	 	 	Any Party may change its address for communications by a notice to the other Parties in
accordance with this §12.04.

	 
	12.05	 	Use of Name. Accelr8 grants to Nanosphere the right to use Accelr8’s name and the
name of the Licensed Product in the promotion of Nanosphere Products.

	 
	12.06	 	Entire Agreement. The terms and provisions contained in this Agreement (including
any and all Appendices referred to herein) constitute the entire Agreement between the Parties
and shall supersede all previous communications, representations, agreements or
understandings, either oral or written, between the parties hereto with respect to the subject
matter hereof, and no agreement or understanding varying or extending this Agreement will be
binding upon any Party hereto, unless in writing which specifically refers to this Agreement,
signed by duly authorized officers or representatives of each of the Parties, and the
provisions of this Agreement not specifically amended thereby shall remain in full force and
effect according to their terms.

	 
	12.07	 	Severability. The provisions and clauses of this Agreement are severable, and in the
event that any provision or clause is determined to be invalid or unenforceable under any
controlling body of the law, such provision or clause shall, if possible, be interpreted to
achieve the intent of the Parties to this Agreement to the extent possible rather than voided.
In any event, such invalidity or unenforceability will not in any way affect the validity or
enforceability of the remaining provisions and clauses hereof.

	 
	12.08	 	No Agency. The Parties relationship, as established by this Agreement, is solely
that of independent contractors. This Agreement does not establish a joint venture,
partnership or similar business relationship among the Parties, except as expressly set forth herein. No
Party is a legal representative of any other Party hereto, and no Party can assume or create
any obligation, representation, warranty or guarantee, express or implied, on behalf of any
other Party for any purpose whatsoever.

 

14

 

	12.09	 	Waiver. The failure of a Party to insist upon strict performance of any provision of
this Agreement or to exercise any right arising out of this Agreement shall neither impair
that provision or right nor constitute a waiver of that provision or right, in whole or in
part, in that instance or in any other instance. Any waiver by a Party of a particular
provision or right shall be in writing, shall be as to a particular matter and, if applicable,
for a particular period of time and shall be signed by such Party.

	 
	12.10	 	Amendment. This Agreement may only be modified or supplemented in a writing
expressly stated for such purpose and signed by duly authorized representatives of the Parties
to this Agreement.

	 
	12.11	 	Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original but all of which together shall constitute a single
instrument.

	 
	12.12	 	No Third Party Rights or Obligations. No provision of this Agreement shall be deemed
or construed in any way to result in the creation of any rights or obligation in any Third
Party.

	 
	12.13	 	Titles and Subtitles. The titles of the sections and subsections of this Agreement
are for convenience of reference only and are not to be considered in construing this
Agreement.

	 
	12.14	 	Cumulative Rights. The rights, powers and remedies hereunder shall be in addition
to, and not in limitation of, all rights, powers and remedies provided at law or in equity, or
under any other agreement between the Parties. All of such rights, powers and remedies shall
be cumulative, and may be exercised successively or cumulatively.

[Remainder of Page Intentionally Left Blank]

 

15

 

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed in
duplicate by their respective duly authorized officers.

	 	 	 	 	 	 	 	 	 
	Accelr8 technology corporation	 	Nanosphere Inc.	 	 
	 
	By: 

	/s/ Thomas V. Geimer
	 	By: 
	/s/ Winton G. Gibbons
	 	 
	 

	 
	 	 	 
	 
	 

	Name: 	Thomas V. Geimer
	 	 	Name: 	Winton G. Gibbons	 	 
	 

	Title:	 CEO
	 	 	Title:	Senior Vice President, Business

Development	 	 

 

16

 

APPENDIX A

LIST OF ACCELR8 PATENTS AND PATENT APPLICATIONS

United States Provisional Patent Application

Application Serial Number: 60/301,223

Filed: June 26, 2001

United States Provisional Patent Application

Application Serial Number: 60/536,596

Filed: January 15, 2004

United States Provisional Patent Application

Application Serial Number: 60/541,885

Filed: January 31, 2004

United States Provisional Patent Application

Application Serial No. 60/561,240

Filed: April 10, 2004

United States Patent

Title: Functional Surface Coating

Publication Number: US 6,844,028

Application Serial Number: 10/180,199

Filed: June 25, 2002

Issue Date: January 18, 2005

Published Patent Application Number: US 20030022216

United States Patent

Title: Functional Surface Coating

Publication Number: US 7,067,194

Application Serial Number: 10/718,880

Filed: November 21, 2003

Issue Date: June 27, 2006

Published Patent Application Number: US 2004/0115721

United States Patent

Title: Functional Surface Coating

Publication Number: 7,629,029

Application Serial Number: 10/964,845

Filed: October 13, 2004

Issue Date: December 8, 2009

Published Patent Application Number: US 2005/0100675

 

 

 

United States Patent

Title: Hydroxyl functional surface coating

Publication Number: 7,501,157

Application Serial Number: 11/035,849

Filed: January 13, 2005

Issue Date: March 10, 2009

Published Patent Application Number: US 2005/0147758

United States Patent Application

Title: Functional Surface Coating

Application Serial Number: 12/632,609

Filed December 7, 2009

Published Patent Application Number: 2010/0081735

International Application Published Under the Patent Cooperation Treaty (PCT)

Title: Functional Surface Coating

Application Number: PCT/US2002/020408

International Filing Date: June 26, 2002

Publication Number: WO 03/000433 A1

Publication Date: January 3, 2003

Canadian Patent Application

Title: Functional Surface Coatings with Low Non-Specific Binding Properties

Application Serial Number: CA 2455393

Filing Date: June 26, 2002

Publication Number: WO 03/000433 A1

European Patent Application

Title: Functional Surface Coatings with Low Non-Specific Binding Properties

Application Serial Number: EP 02737596

Filing Date: June 26, 2002

Publication Number: WO 03/000433 A1

Israel Patent

Title: Functional Surface Coatings with Low Non-Specific Binding Properties

Application Serial Number: IL 159556

Filing Date: June 26, 2002

Publication Number: WO 03/000433 A1

Patent Number: 159,556

Grant Date: November 21, 2006

Japan Patent Application

Title: Functional Surface Coatings

Application Serial Number: JP 2003506665

Filing Date: June 26, 2002

 

 

 

APPENDIX B

SPECIFICATIONS FOR THE LICENSED PRODUCT

The Licensed Product consists of:

a coating to be applied to a single discrete physical substrate component article;

said coating comprising a polymer formulation comprising of:

an active component comprising polyethylene glycol polymer;

a matrix forming component;

and a crosslinking component.exv4w1

Exhibit 4.1

GIGAMEDIA LIMITED

2010 EQUITY INCENTIVE PLAN

     1.      Purpose; Types of Awards; Construction.

     The purposes of the GigaMedia Limited 2010 Equity Incentive Plan (the “Plan”) are to afford an
incentive to non-employee directors, selected officers and other employees, advisors and
consultants of GigaMedia Limited (the “Company”), or any Subsidiary that now exists or hereafter is
organized, incorporated or acquired, to continue as non-employee directors, officers or employees,
advisors or consultants, as the case may be, to increase their efforts on behalf of the Company and
its Subsidiaries and to promote the success of the Company’s business. The Plan provides for the
grant of Options (including Incentive Stock Options and Nonqualified Stock Options), Stock
Appreciation Rights, Restricted Stock, Restricted Stock Units and Other Stock-Based Awards (each
term as defined herein).

     2.      Definitions.

     For purposes of the Plan, the following terms shall be defined as set forth below:

          (a)      “Award” means any Option, SAR, Restricted Stock, Restricted Stock Unit or Other
Stock-Based Award granted under the Plan.

          (b)      “Award Agreement” means any written agreement, contract, or other instrument or document
evidencing an Award.

          (c)      “Board” means the Board of Directors of the Company.

          (d)      “Change in Control” means a change in control of the Company, which will be deemed to have
occurred if:

     (i)      any “person,” as such term is used in Sections 13(d) and 14(d) of the
Exchange Act (other than (A) the Company, (B) any trustee or other fiduciary
holding securities under an employee benefit plan of the Company, and (C) any
corporation owned, directly or indirectly, by the shareholders of the Company in
substantially the same proportions as their ownership of Company Stock), is or
becomes the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of securities of the Company representing 25% or more of
the combined voting power of the Company’s then outstanding voting securities
(excluding any person who becomes such a beneficial owner in connection with a
transaction immediately following which the individuals who comprise the Board
immediately prior thereto constitute at least a majority of the Board, the entity
surviving such transaction or, if the Company or the entity surviving the
transaction is then a subsidiary, the ultimate parent thereof);

     (ii)      the following individuals cease for any reason to constitute a majority
of the number of directors then serving: individuals who, on the Effective Date,
constitute the Board and any new director (other than a director whose initial
assumption of office is in connection with an actual or threatened election
contest, including but not limited to a consent solicitation, relating to the
election of directors of the Company) whose appointment or election by the Board
or nomination for election by the Company’s shareholders was approved or
recommended by a vote of at least two-thirds (2/3) of the directors then still in
office who either were directors on the Effective Date or whose appointment,
election or nomination for election was previously so approved or recommended;

     (iii)      there is consummated a merger or consolidation of the Company or any
direct or indirect subsidiary of the Company with any other corporation, other
than a merger or consolidation immediately following which the individuals who
comprise the Board immediately prior thereto constitute at least a majority of the
Board, the entity surviving such merger or consolidation or, if the Company or the
entity surviving such merger is then a subsidiary, the ultimate parent thereof; or

     (iv)      the shareholders of the Company approve a plan of complete liquidation
of the Company or there is consummated an agreement for the sale or disposition by
the Company of all or substantially all of the Company’s assets (or any
transaction having a similar effect), other than a sale or disposition by the
Company of all or substantially all of the Company’s assets to an entity,
immediately following which the individuals who comprise the Board immediately
prior thereto constitute at least a majority of the board of directors of the
entity to which such assets are sold or disposed of or, if such entity is a
subsidiary, the ultimate parent thereof.

     (v)      Notwithstanding the foregoing, a Change in Control shall not be deemed to
have occurred by virtue of the consummation of any transaction or series of
integrated transactions immediately following which the holders of the Company
Stock

 

 

immediately prior to such transaction or series of transactions continue to
have substantially the same proportionate ownership in an entity which owns all or
substantially all of the assets of the Company immediately following such
transaction or series of transactions.

          (e)      “Code” means the Internal Revenue Code of 1986, as amended from time to time.

          (f)      “Committee” means the committee of members of the Board appointed by the Board to
administer the Plan.

          (g)      “Company” means GigaMedia Limited, a company incorporated under the Companies Act, Chapter
50 of Singapore, or any successor corporation.

          (h)      “Company Stock” means the ordinary shares of the Company.

          (i)      “Effective Date” means the date that the Plan was approved by the shareholders of the
Company.

          (j)      “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time,
and as now or hereafter construed, interpreted and applied by regulations, rulings and cases.

          (k)      “Fair Market Value” means, with respect to Company Stock or other property, the fair
market value of such Company Stock or other property determined by such methods or procedures as
shall be established from time to time by the Committee. Unless otherwise determined by the
Committee in good faith, the per share Fair Market Value of the Company Stock as of a particular
date shall be calculated as the mean between the highest and lowest reported sales price per share
of Company Stock on the national securities exchange on which the Company Stock is principally
traded, for the last preceding date on which there was a sale of such Company Stock on such
exchange.

          (l)      “Grantee” means a person who, as a non-employee director, officer, other employee, advisor
or consultant of the Company or a Subsidiary, has been granted an Award under the Plan.

          (m)      “Incentive Stock Option” or “ISO” means any Option intended to be and designated as an
incentive stock option within the meaning of Section 422 of the Code.

          (n)      “Nonqualified Stock Option” or “NQSO” means any Option that is not designated as an ISO.

          (o)      “Option” means a right, granted to a Grantee under Section 6(b), to purchase shares of
Company Stock. An Option may be either an ISO or an NQSO, provided that ISOs may be granted only
to employees of the Company or a Subsidiary.

          (p)      “Other Stock-Based Award” means a right or other interest granted to a Grantee under
Section 6(f) that may be denominated or payable in, valued in whole or in part by reference to, or
otherwise based on, or related to, Company Stock, including but not limited to (i) unrestricted
Company Stock awarded as a bonus or upon the attainment of performance goals or otherwise as
permitted under the Plan, and (ii) a right granted to a Grantee to acquire Company Stock from the
Company containing terms and conditions prescribed by the Committee.

          (q)      “Plan” means this GigaMedia Limited 2010 Equity Incentive Plan, as amended from time to
time.

          (r)      “Plan Year” means a calendar year.

          (s)      “Restricted Stock” means an Award of shares of Company Stock to a Grantee under Section
6(d) that may be subject to certain restrictions and to a risk of forfeiture.

          (t)      “Restricted Stock Unit” means a right granted to a Grantee under Section 6(e) to receive
Company Stock or cash at the end of a specified deferral period, which right may be conditioned on
the satisfaction of specified performance or other criteria.

          (u)      “Securities Act” means the United States Securities Act of 1933, as amended.

          (v)      “Stock Appreciation Right” or “SAR” means the right, granted to a Grantee under Section
6(c), to be paid an amount measured by the appreciation in the Fair Market Value of Company Stock
from the date of grant to the date of exercise of the right.

          (w)      “Subsidiary” means a “subsidiary corporation” of the Company, whether now or hereafter
existing, as defined in Section 424(f) of the Code.

 

 

     3.      Administration.

     The Plan shall be administered by the Committee. The Committee shall have the authority in
its discretion, subject to and not inconsistent with the express provisions of the Plan, to
administer the Plan and to exercise all the powers and authorities either specifically granted to
it under the Plan or necessary or advisable in the administration of the Plan, including, without
limitation, the authority to grant Awards; to determine the persons to whom and the time or times
at which Awards shall be granted; to determine the type and number of Awards to be granted, the
number of shares of Company Stock to which an Award may relate and the terms, conditions,
restrictions and performance criteria relating to any Award, including whether the grant, vesting,
payment or other settlement of any Award may be subject to the attainment of performance goals; and
to determine whether, to what extent, and under what circumstances an Award may be settled,
cancelled, forfeited, exchanged, or surrendered; to make adjustments in the terms and conditions
of, and the performance goals (if any) included in, Awards; to construe and interpret the Plan and
any Award; to prescribe, amend and rescind rules and regulations relating to the Plan; to determine
the terms and provisions of the Award Agreements (which need not be identical for each Grantee); to
re-price (or cancel and re-grant) any Option or, if applicable, other Award at a lower exercise,
base or purchase price; and to make all other determinations deemed necessary or advisable for the
administration of the Plan, including without limitation the determination to delegate or authorize
any of the above-listed powers to a subcommittee of the Committee or to a committee comprised of
members of Company management.

     The Committee may appoint a chairperson and a secretary and may make such rules and
regulations for the conduct of its business as it shall deem advisable, and shall keep minutes of
its meetings. All determinations of the Committee shall be made by a majority of its members
either present in person or participating by conference telephone at a meeting or by written
consent. The Committee may delegate to a subcommittee of one or more of its members or to one or
more agents (including members of Company management) such duties as it may deem advisable, and the
Committee or any person or group to whom it has delegated duties as aforesaid may employ one or
more persons to render advice with respect to any responsibility the Committee or such person may
have under the Plan. All decisions, determinations and interpretations of the Committee shall be
final and binding on all persons, including but not limited to the Company, any subsidiary of the
Company or any Grantee (or any person claiming any rights under the Plan from or through any
Grantee) and any shareholder.

     No member of the Board or Committee shall be liable for any action taken or determination made
in good faith with respect to the Plan or any Award granted hereunder.

     4.      Eligibility.

     Awards may be granted to selected non-employee directors, officers and other employees,
advisors or consultants of the Company or any Subsidiary, in the absolute discretion of the
Committee. In determining the persons to whom Awards shall be granted and the type of any Award
(including the number of shares to be covered by such Award), the Committee shall take into account
such factors as the Committee shall deem relevant in connection with accomplishing the purposes of
the Plan.

     5.      Stock Subject to the Plan.

     The maximum number of shares of Company Stock reserved for the grant of Awards under the Plan
shall be 1,000,000 (all or any number of which may be granted as ISOs), subject to adjustment as
provided herein. Such shares may, in whole or in part, be shares that shall have been or may be
reacquired by the Company in the open market, in private transactions or otherwise. If any shares
of Company Stock subject to an Award are forfeited, cancelled, exchanged or surrendered or if an
Award terminates or expires without a distribution of shares to the Grantee, or if shares of
Company Stock are surrendered or withheld as payment of either the exercise price of an Award
and/or withholding taxes in respect of an Award, such shares shall, to the extent of any such
forfeiture, cancellation, exchange, surrender, withholding, termination or expiration, again be
available for Awards under the Plan. Upon the exercise of any Award granted in tandem with any
Awards such related Awards shall be cancelled to the extent of the number of shares of Company
Stock as to which the Award is exercised and, notwithstanding the foregoing, such number of shares
shall no longer be available for Awards under the Plan.

     In the event that the Committee shall determine that any dividend or other distribution
(whether in the form of cash, Company Stock, or other property), recapitalization, stock split,
reverse split, reorganization, merger, consolidation, spin-off, combination, repurchase, or share
exchange, or other similar corporate transaction or event, affects the Company Stock such that an
adjustment is appropriate in order to prevent dilution or enlargement of the rights of Grantees
under the Plan, then the Committee shall make such equitable changes or adjustments as it deems
necessary or appropriate to any or all of (i) the number and kind of shares of Company Stock or
other property (including cash) that may thereafter be issued in connection with Awards, (ii) the
number and kind of shares of Company Stock or other property (including cash) issued or issuable in
respect of outstanding Awards, (iii) the exercise price, grant price, or purchase price relating to
any Award; provided, that, with respect to ISOs, such adjustment shall be made in accordance with
Section 424(h) of the Code; and (iv) the performance goals applicable to outstanding Awards.

     6.      Terms of Awards.

          (a)      General. The Committee is authorized to grant the Awards described in this
Section 6, under such terms and conditions as deemed by the Committee to be consistent with the
purposes of the Plan. Each Award granted under the Plan shall be evidenced by an Award Agreement
containing such terms and

 

 

conditions applicable to such Award as the Committee shall determine at the date of grant or
thereafter. Subject to the terms of the Plan and any applicable Award Agreement, payments to be
made by the Company or a Subsidiary upon the grant, maturation, or exercise of an Award may be made
in such forms as the Committee shall determine at the date of grant or thereafter, including,
without limitation, cash, Company Stock, or other property, and may be made in a single payment or
transfer, in installments, or on a deferred basis. In addition to the foregoing, the Committee may
impose on any Award or the exercise thereof, at the date of grant or thereafter, such additional
terms and conditions, not inconsistent with the provisions of the Plan, as the Committee shall
determine.

          (b)      Options. The Committee is authorized to grant Options to Grantees on the
following terms and conditions:

     (i)      Type of Award. The Award Agreement evidencing the grant of an
Option under the Plan shall designate the Option as an ISO or an NQSO.

     (ii)      Exercise Price. The exercise price per share of Company Stock
purchasable under an Option shall be determined by the Committee. The exercise
price for Company Stock subject to an Option may be paid in cash or by an exchange
of Company Stock previously owned by the Grantee, through a “broker cashless
exercise” procedure approved by the Committee (to the extent permitted by law), or
a combination of the above, in any case in an amount having a combined value equal
to such exercise price. An Award Agreement may provide that a Grantee may pay all
or a portion of the aggregate exercise price by having shares of Company Stock
with a Fair Market Value on the date of exercise equal to the aggregate exercise
price withheld by the Company.

     (iii)      Term and Exercisability of Options. Options shall be
exercisable over the exercise period (which shall not exceed ten years from the
date of grant), at such times and upon such conditions as the Committee may
determine, as reflected in the Award Agreement; provided, that the Committee shall
have the authority to accelerate the exercisability of any outstanding Option at
such time and under such circumstances as it, in its sole discretion, deems
appropriate. An Option may be exercised to the extent of any or all full shares
of Company Stock as to which the Option has become exercisable, by giving written
notice of such exercise to the Committee or its designated agent.

     (iv)      Special Provisions Applicable to Incentive Stock Options.
Notwithstanding any other provisions of the Plan, the following terms shall apply
to ISOs:

	 	(1)	 	ISOs may be granted only to Participants
who are employees of the Company or any Subsidiary.
	 
	 	(2)	 	The exercise price of an ISO shall be not
less than 100% of the Fair Market Value of the Company Stock as of
the date of grant; provided, that the exercise price of an ISO
granted to a “ten percent shareholder” (within the meaning of
422(c)(5) of the Code) shall not be less than 110% of the Fair
Market Value of the Company Stock as of the date of grant.
	 
	 	(3)	 	The term of an ISO granted to a ten
percent shareholder shall be no longer than five years from the date
of grant.
	 
	 	(4)	 	The aggregate Fair Market Value
(determined as of the date of grant) of shares of Company Stock with
respect to which ISOs are exercisable for the first time by a
Grantee during any calendar year (under the Plan or under any other
incentive stock option plan of the Company) shall not exceed
$100,000.
	 
	 	(5)	 	In the event that the Code or the
regulations promulgated thereunder applicable to ISOs are amended
after the Effective Date of the Plan in a manner that would cause
the provisions of this Section 6(b)(5) to be inconsistent with such
amended sections, such amended sections shall be automatically
incorporated into the Plan and shall apply to all ISOs to the extent
permitted by the Code.

     To the extent that an Option intended to qualify as an Incentive Stock Option does
not qualify for such treatment, such Option shall be treated as a Nonqualified
Stock Option.

     (v)      Other Provisions. Options may be subject to such other
conditions including, but not limited to, restrictions on transferability of the shares acquired upon exercise of such Options, as the Committee may prescribe in
its discretion or as may be required by applicable law.

          (c)      SARs. The Committee is authorized to grant Stock Appreciation Rights to Grantees
on the following terms and conditions:

 

 

     (i)      In General. Unless the Committee determines otherwise, an SAR
(1) granted in tandem with an NQSO may be granted at the time of grant of the
related NQSO or at any time thereafter or (2) granted in tandem with an ISO may
only be granted at the time of grant of the related ISO. An SAR granted in tandem
with an Option shall be exercisable only to the extent the underlying Option is
exercisable. Payment of an SAR may made in cash, Company Stock, or other property
as specified in the Award or determined by the Committee

     (ii)      SARs. An SAR shall confer on the Grantee a right to receive an
amount with respect to each share subject thereto, upon exercise thereof, equal to
the excess of (1) the Fair Market Value of one share of Company Stock on the date
of exercise over (2) the grant price of the SAR (which in the case of an SAR
granted in tandem with an Option shall be equal to the exercise price of the
underlying Option, and which in the case of any other SAR shall be such price as
the Committee may determine; provided, that the per share exercise price of an SAR
may not be less than the Fair Market value of a share of Company Stock on the date
of grant).

     (iii)      Term and Exercisability of SARs. SARs shall be exercisable
over the exercise period (which shall not exceed ten years from the date of
grant), at such times and upon such conditions as the Committee may determine, as
reflected in the Award Agreement; provided, that the Committee shall have the
authority to accelerate the exercisability of any outstanding SAR at such time and
under such circumstances as it, in its sole discretion, deems appropriate. An SAR
may be exercised to the extent of any or all full shares of Company Stock as to
which the SAR has become exercisable, by giving written notice of such exercise to
the Committee or its designated agent.

          (d)      Restricted Stock. The Committee is authorized to grant Restricted Stock to
Grantees on the following terms and conditions:

     (i)      Issuance and Restrictions. Restricted Stock shall be subject to
such restrictions on transferability and other restrictions, if any, as the
Committee may impose at the date of grant or thereafter, which restrictions may
lapse separately or in combination at such times, under such circumstances, in
such installments, or otherwise, as the Committee may determine. The Committee
may place restrictions on Restricted Stock that shall lapse, in whole or in part,
only upon the attainment of performance goals. Except to the extent restricted
under the Award Agreement relating to the Restricted Stock, a Grantee granted
Restricted Stock shall have all of the rights of a shareholder including, without
limitation, the right to vote Restricted Stock and the right to receive dividends
thereon.

     (ii)      Forfeiture. Upon termination of employment with the Company and
its Subsidiaries, or upon termination of the director or independent contractor
relationship, as the case may be, during the applicable restriction period,
Restricted Stock and any accrued but unpaid dividends that are then subject to
restrictions shall be forfeited; provided, that the Committee may provide, by rule
or regulation or in any Award Agreement, or may determine in any individual case,
that restrictions or forfeiture conditions relating to Restricted Stock will be
waived in whole or in part in the event of terminations resulting from specified
causes, and the Committee may in other cases waive in whole or in part the
forfeiture of Restricted Stock.

     (iii)      Certificates for Stock. Restricted Stock granted under the
Plan may be evidenced in such manner as the Committee shall determine. If
certificates representing Restricted Stock are registered in the name of the
Grantee, such certificates shall bear an appropriate legend referring to the
terms, conditions, and restrictions applicable to such Restricted Stock, and the
Company shall retain physical possession of the certificate.

     (iv)      Dividends. Dividends paid on Restricted Stock shall be either
paid at the dividend payment date, or deferred for payment to such date as
determined by the Committee and set forth in the Award Agreement, in cash or in
            shares of unrestricted Company Stock having a Fair Market Value equal to the
amount of such dividends. Company Stock distributed in connection with a stock
split or stock dividend, and other property distributed as a dividend, shall be
subject to restrictions and a risk of forfeiture to the same extent as the
Restricted Stock with respect to which such Company Stock or other property has
been distributed.

          (e)      Restricted Stock Units. The Committee is authorized to grant Restricted Stock
Units to Grantees on the following terms and conditions:

     (i)      Award and Restrictions. Delivery of Company Stock or cash, as
determined by the Committee, will occur upon expiration of the deferral period
specified for Restricted Stock Units by the Committee. The Committee may place
restrictions on Restricted Stock Units that shall lapse, in whole or in part, only
upon the attainment of performance goals.

 

 

     (ii)      Forfeiture. Upon termination of employment with the Company and
its Subsidiaries, or upon termination of the director or independent contractor
relationship, as the case may be, during the applicable deferral period or portion
thereof to which forfeiture conditions apply, or upon failure to satisfy any other
conditions precedent to the delivery of Company Stock or cash to which such
Restricted Stock Units relate, all Restricted Stock Units and any accrued but
unpaid dividend equivalents that are then subject to deferral or restriction shall
be forfeited; provided, that the Committee may provide, by rule or regulation or
in any Award Agreement, or may determine in any individual case, that restrictions
or forfeiture conditions relating to Restricted Stock Units will be waived in
whole or in part in the event of termination resulting from specified causes, and
the Committee may in other cases waive in whole or in part the forfeiture of
Restricted Stock Units.

     (iii)      Dividend Equivalents. The Committee may in its discretion
determine whether Restricted Stock Units may be credited with dividend equivalents
at such time as dividends, whether in the form of cash, Company Stock or other
property, are paid with respect to the Company Stock. Any such dividend
equivalents shall be credited in the form of additional Restricted Stock Units and
shall subject to restrictions and a risk of forfeiture to the same extent as the
Restricted Stock Unit with respect to which such dividend equivalent was credited.

          (f)      Other Stock-Based Awards. The Committee is authorized to grant Other Stock-Based
Awards to Grantees in such form as deemed by the Committee to be consistent with the purposes of
the Plan. Awards granted pursuant to this paragraph may be granted with value and payment
contingent upon performance goals. The Committee shall determine the terms and conditions of such
Awards at the date of grant or thereafter.

     7.      Change in Control Provisions.

     Unless otherwise determined by the Committee and evidenced in an Award Agreement, in the event
of a Change of Control:

          (a)      any Award carrying a right to exercise that was not previously vested and exercisable
shall become fully vested and exercisable; and

          (b)      the restrictions, deferral limitations, payment conditions, and forfeiture conditions
applicable to any other Award granted under the Plan shall lapse and such Awards shall be deemed
fully vested, and any performance conditions imposed with respect to Awards shall be deemed to be
fully achieved.

     8.      General Provisions.

          (a)      Nontransferability. Unless otherwise provided in an Award Agreement, Awards shall
not be transferable by a Grantee except by will or the laws of descent and distribution and shall
be exercisable during the lifetime of a Grantee only by such Grantee or his guardian or legal
representative.

          (b)      No Right to Continued Employment, etc. Nothing in the Plan or in any Award, any
Award Agreement or other agreement entered into pursuant hereto shall confer upon any Grantee the
right to continue in the employ of or to continue as a director of the Company or any Subsidiary or
to be entitled to any remuneration or benefits not set forth in the Plan or such Award Agreement or
other agreement or to interfere with or limit in any way the right of the Company or any such
Subsidiary to terminate such Grantee’s employment, or director or independent contractor
relationship.

          (c)      Taxes. The Company or any Subsidiary is authorized to withhold from any Award
granted, any payment relating to an Award under the Plan, including from a distribution of Company
Stock, or any other payment to a Grantee, amounts of withholding and other taxes due in connection
with any transaction involving an Award, and to take such other action as the Committee may deem
advisable to enable the Company and Grantees to satisfy obligations for the payment of withholding
taxes and other tax obligations relating to any Award. This authority shall include authority to
withhold or receive Company Stock or other property and to make cash payments in respect thereof in
satisfaction of a Grantee’s tax obligations. The Committee may provide in the Award Agreement that
in the event that a Grantee is required to pay any amount to be withheld in connection with the
issuance of shares of Company Stock in settlement or exercise of an Award, the Grantee may satisfy
such obligation (in whole or in part) by electing to have a portion of the shares of Company Stock
to be received upon settlement or exercise of such Award equal to the minimum amount required to be
withheld.

          (d)      Shareholder Approval; Amendment and Termination.

     (i)      The Plan shall take effect upon its approval by the shareholders of the
Company.

     (ii)      The Board may at any time and from time to time alter, amend, suspend,
or terminate the Plan in whole or in part; provided, however, that an amendment
that requires shareholder approval in order for the Plan to continue to comply
with

 

 

any applicable law, regulation or stock exchange requirement shall not be
effective unless approved by the requisite vote of shareholders. Notwithstanding
the foregoing, no amendment to or termination of the Plan shall affect adversely
any of the rights of any Grantee, without such Grantee’s consent, under any Award
theretofore granted under the Plan.

          (e)      Expiration of Plan. Unless earlier terminated by the Board pursuant to the
provisions of the Plan, the Plan shall expire on the tenth anniversary of the Effective Date. No
Awards shall be granted under the Plan after such expiration date. The expiration of the Plan
shall not affect adversely any of the rights of any Grantee, without such Grantee’s consent, under
any Award theretofore granted.

          (f)      No Rights to Awards; No Shareholder Rights. No Grantee shall have any claim to be
granted any Award under the Plan, and there is no obligation for uniformity of treatment of
Grantees. Except as provided specifically herein, a Grantee or a transferee of an Award shall
have no rights as a shareholder with respect to any shares covered by the Award until the date of
the issuance of a stock certificate to him for such shares.

          (g)      Unfunded Status of Awards. The Plan is intended to constitute an “unfunded” plan
for incentive and deferred compensation. With respect to any payments not yet made to a Grantee
pursuant to an Award, nothing contained in the Plan or any Award shall give any such Grantee any
rights that are greater than those of a general creditor of the Company.

          (h)      No Fractional Shares. No fractional shares of Company Stock shall be issued or
delivered pursuant to the Plan or any Award. The Committee shall determine whether cash, other
Awards, or other property shall be issued or paid in lieu of such fractional shares of Company
Stock or whether such fractional shares or any rights thereto shall be forfeited or otherwise
eliminated.

          (i)      Regulations and Other Approvals.

     (i)      The obligation of the Company to sell or deliver Company Stock with
respect to any Award granted under the Plan shall be subject to all applicable
laws, rules and regulations, including all applicable federal and state securities
laws, and the obtaining of all such approvals by governmental agencies as may be
deemed necessary or appropriate by the Committee.

     (ii)      Each Award is subject to the requirement that, if at any time the
Committee determines, in its absolute discretion, that the listing, registration
or qualification of Company Stock issuable pursuant to the Plan is required by any
securities exchange or under any state or federal law, or the consent or approval
of any governmental regulatory body is necessary or desirable as a condition of,
or in connection with, the grant of an Award or the issuance of Company Stock, no
such Award shall be granted or payment made or Company Stock issued, in whole or
in part, unless listing, registration, qualification, consent or approval has been
effected or obtained free of any conditions not acceptable to the Committee.

     (iii)      In the event that the disposition of Company Stock acquired pursuant to
the Plan is not covered by a then current registration statement under the
Securities Act and is not otherwise exempt from such registration, such Company
Stock shall be restricted against transfer to the extent required by the
Securities Act or regulations thereunder, and the Committee may require a Grantee
receiving Company Stock pursuant to the Plan, as a condition precedent to receipt
of such Company Stock, to represent to the Company in writing that the Company
Stock acquired by such Grantee is acquired for investment only and not with a view
to distribution.

     (iv)      The Committee may require a Grantee receiving Company Stock pursuant to
the Plan, as a condition precedent to receipt of such Company Stock, to enter into
a shareholder agreement or “lock-up” agreement in such form as the Committee shall
determine is necessary or desirable to further the Company’s interests.

          (j)      Disclaimer of Liability. Notwithstanding any provision of the Plan or any Award
Agreement to the contrary, the Committee and the Company shall not under any circumstances be held
liable for any costs, losses, expenses and damages whatsoever and howsoever arising in any event,
including but limited to the Company’s delay in issuing, or procuring the transfer of, shares of
Company Stock or applying for or procuring the listing of such shares on any securities exchange.

          (k)      Section 409A. The intent of the parties is that payments and benefits under the Plan
comply with Section 409A of the Code to the extent subject thereto, and, accordingly, to the
maximum extent permitted, the Plan shall be interpreted and be administered to be in compliance
therewith. Notwithstanding anything contained herein to the contrary, to the extent required in
order to avoid accelerated taxation and/or tax penalties under Section 409A of the Code, a Grantee
shall not be considered to have terminated employment with the Company for purposes of the Plan and
no payment shall be due to a Grantee under the Plan or any Award Agreement until the Grantee would
be considered to have incurred a “separation from service” from the Company within the meaning of
Section 409A of the Code. Any payments described in the Plan that are due within the “short term
deferral period” as defined in Section 409A of the Code shall not be treated as deferred
compensation unless

 

 

applicable law requires otherwise. Notwithstanding anything to the contrary in the Plan, to
the extent that any Awards are payable upon a separation from service and such payment would result
in the imposition of any individual excise tax and late interest charges imposed under Section 409A
of the Code, the settlement and payment of such portion of such Award shall instead be made on the
first business day after the date that is six months following such separation from service (or
death, if earlier).

          (l)      Governing Law. The Plan and all determinations made and actions taken pursuant
hereto shall be governed by the laws of the Republic of Singapore without giving effect to the
conflict of laws principles thereof. Grantees, by accepting Awards in accordance with the Plan,
submit to the exclusive jurisdiction of the courts of the Republic of Singapore.

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