Document:

EX-10.20

Exhibit 10.20

COMPELLENT TECHNOLOGIES, INC.

EXECUTIVE EMPLOYMENT AGREEMENT

     This Executive Employment Agreement (the “Agreement”) is entered into as of the 16th
day of June, 2008 (the “Effective Date”) by and between Compellent Technologies, Inc., a
Delaware corporation (the “Company”), and Brian P. Bell (“Executive”), an individual
residing in the State of Wisconsin.

Recitals

     The Company desires to employ Executive and avail itself of the unique skills, talents,
contacts, judgment and knowledge of Executive;

     Executive desires to be employed by the Company pursuant to the terms and conditions described
more fully below:

     Now, Therefore, in consideration of the foregoing and the mutual covenants set forth
herein, the Company and Executive, intending to be legally bound, hereby agree as follows:

Agreements

     1. Employment and Duties. Subject to the terms and conditions set forth herein, the Executive
shall serve as the Company’s Vice President, Sales, with those duties set forth on Schedule 1
attached hereto. Executive shall devote his full working time and efforts to the Company’s
business, to the exclusion of all other employment or active participation in other material
business interests, unless otherwise consented to in writing by the disinterested members of the
Board of Directors of the Company (the “Board”). The Executive may not serve as a director on any
board of directors without the unanimous written consent of the Board.

     2. At will Employment. Executive’s employment with Company shall be at will and this
Agreement may be unilaterally terminated by either party subject to the terms of Section 5 of this
Agreement.

     3. Compensation. For all services rendered by Executive pursuant to this Agreement, the
Company shall compensate Executive pursuant to the terms and conditions as initially listed in
Schedule 2 attached hereto, or as it may be adjusted from time to time hereafter.

     4. Proprietary Information and Inventions Agreement. Executive affirms his obligations under
the Proprietary Information and Inventions Agreement (the “Proprietary Agreement”) that is attached
as Schedule 3 hereto, which he has previously executed in connection with the commencement of his
employment.

     5. Termination.

          A. Voluntary Termination. Except as provided in Sections 5.B., C., D. and E., each party
hereto may terminate Executive’s employment by giving to the other party no less than thirty (30)
days prior written notice of the party’s intent to terminate. If Executive

 

 

voluntarily terminates his employment without Good Reason then the Company shall have no
further liability to Executive for any payment, compensation or benefit whatsoever, other than
payment of Executive’s accrued but unpaid salary and benefits through the date of Executive’s
termination. If the Company voluntarily terminates Executive’s employment without Cause (as set
forth in Section 5.D. hereof) or Executive terminates his employment for Good Reason (as set forth
in Section 5.E.), and subject to Executive’s compliance with Section 6 of this Agreement and with
the Proprietary Agreement, then Executive shall be entitled to a severance payments and benefits as
described in Section 6 of this Agreement.

          B. By Death. Executive’s employment shall be terminated automatically upon the death of
Executive. The Company’s total liability in such event shall be limited to payment of Executive’s
accrued but unpaid salary and benefits through the date of Executive’s death.

          C. By Disability. The Company may terminate Executive’s employment upon the inability of
Executive to perform on a full-time basis the duties and responsibilities of his employment with
the Company by reason of his illness or other physical or mental impairment or condition, if such
inability continues for an uninterrupted period of 90 days. A period of inability shall be
“uninterrupted” unless and until Executive returns to full-time work for a continuous period of at
least 30 days. The Company shall have no liability for severance pay or benefits following the
date of Executive’s termination of employment, other than payment of Executive’s accrued but unpaid
salary and benefits through the date of Executive’s termination AND ANY RIGHTS EXECUTIVE HAS TO
DISABILITY INSURANCE BENEFITS UNDER APPLICABLE LAW OR THE COMPANY’S SHORT OR LONG TERM DISABILITY
INSURANCE POLICIES AS IN EFFECT AT THE TIME OF TERMINATION.

          D. For Cause. The employment relationship between Executive and the Company created hereunder
shall automatically and immediately terminate upon the occurrence of any one of the following
events:

               (i) the conviction of Executive of a felony;

               (ii) the gross negligence or willful misconduct of Executive which is reasonably determined by
the Board to be injurious to the business or interests of the Company;

               (iii) Executive’s willful violation of specific and lawful directions of the Board, which
persists for a period of 5 days after notice is given of such willful violation;

               (iv) excessive absenteeism of Executive which persists for a period of 30 days after the Board
has given the Executive notice of such absenteeism;

               (v) material failure of Executive to perform or observe the provisions of this Agreement with
the Company which persists for a period of 30 days after notice is given of such failure to perform
or observe;

               (vi) failure to cooperate with the Company in any investigation or formal proceeding; or

 

 

               (vii) any act of fraud with respect to any aspect of the Company’s business where such act is
reasonably determined by the Board to be injurious to the business of the Company.

          E. Good Reason. Executive’s voluntary resignation of his employment under this Agreement will
be considered to be with “Good Reason” if, following the occurrence of one or more of the events
listed below, Executive (1) provides written notice to the Board of the event(s) constituting Good
Reason within thirty (30) days after the first occurrence of such event(s), (2) the Company fails
to reasonably cure such event(s) within thirty (30) days after receiving such notice, and (3)
Executive’s termination of his employment is effective not later than thirty (30) days after the
end of the period in which the Board may cure the event(s). The following events will give rise to
Good Reason, unless Executive has consented thereto in writing:

               (i) A material reduction or diminution in the Executive’s job responsibilities or duties;
provided, however, that neither a mere change in title alone nor reassignment to a position that is
substantially similar to the position held prior to the reassignment shall constitute Good Reason
(including but not limited to, following a Change in Control, performing substantially the same
duties with respect to substantially the same size and scope of organization, but which
organization is part of a larger organization);

               (ii) A material reduction by the Company of Executive’s Base Salary as in effect on the date
of this Agreement (as set forth on Schedule 2 hereof) or as same may be increased from time to time
thereafter; provided, however, that a reduction of Base Salary in connection with a similar general
reduction of the base salaries of the Company’s executive employees shall not constitute Good
Reason;

               (iii) The relocation of Executive’s primary work location, on a permanent basis, to an office
that would increase the Executive’s one way commute distance by more than seventy-five (75) miles
from Executive’s primary work location as of immediately prior to such change; or

               (iv) any acquirer, successor or assignee of the Company fails to assume and perform, in all
material respects, the obligations of the Company hereunder.

     6. Severance.

          A. If the Company voluntarily terminates Executive’s employment without Cause (and other than
as a result of Executive’s death or disability (as defined above)) or if Executive resigns his
employment with Good Reason, then subject to the effectiveness of Executive’s executed general
waiver and release of claims in favor of the Company and its affiliates (in substantially the form
attached hereto as Schedule 4), and provided Executive complies with his continuing obligations to
the Company (including but not limited to those in the Proprietary Agreement), Executive shall be
entitled to receive:

               (i) a lump sum payment equal to four (4) months of his Base Salary, less applicable
withholdings (the “Cash Severance”);

 

 

               (ii) if Executive was enrolled in a group health plan (e.g., medical, dental, or vision plan)
sponsored by the Company immediately prior to termination, and if Executive (or his eligible
dependents) timely elects to continue such coverage under the Consolidated Omnibus Budget
Reconciliation Act of 1985 (together with any state law of similar effect, “COBRA”), the Company
will pay to the insurance carrier(s) the full amount of the premiums due for Executive and his
eligible dependents for the first four (4) months of such coverage under COBRA (or until such
earlier time as Executive and/or his eligible dependents are no longer eligible for COBRA
coverage); and

               (iii) if the termination occurs on, within three (3) months prior to, or eighteen (18) months
following, a Change in Control (as defined below), 100% of Executive’s then-outstanding and
unvested compensatory equity awards (in addition to any acceleration provided for pursuant to the
stock options to purchase 50,000 shares granted on March 28, 2007 and 70,000 shares granted on
March 28, 2007) pursuant to the Company’s 2002 Stock Option Plan, as amended (the “Prior Stock
Option Grants”)) shall become immediately fully vested and, as applicable, exercisable, effective
as of immediately prior to the termination of Executive’s employment.

               Executive must execute the release of claims within forty-five (45) days following the date of
termination, and allow the release to become effective in accordance with its terms. If the
release becomes effective within such time period, and subject to Executive’s observation of his
continuing obligations, the Company will pay the Cash Severance on the first regular payroll pay
date following the effective date of the release.

          B. If the Company (or, if applicable, the successor entity thereto) determines that these
severance payments and benefits (the “Payments”) constitute “deferred compensation” under Section
409A of the Internal Revenue Code (together, with any state law of similar effect, “Section 409A”)
and Executive is a “specified employee” of the Company or any successor entity thereto, as such
term is defined in Section 409A(a)(2)(B)(i) (a “Specified Employee”), then, solely to the extent
necessary to avoid the incurrence of the adverse personal tax consequences under Section 409A, the
timing of the Payments shall be delayed as follows: on the earliest to occur of (i) the date that
is six months and one day after the termination date, (ii) the date of the Eligible Employee’s
death, or (iii) such earlier date, as reasonably determined in good faith by the Company (or any
successor entity thereto), as would not result in any of the Payments being subject to adverse
personal tax consequences under Section 409A (such earliest date, the “Delayed Initial Payment
Date”), the Company (or the successor entity thereto, as applicable) shall (A) pay to Executive a
lump sum amount equal to the sum of the Payments that Executive would otherwise have received
through the Delayed Initial Payment Date if the commencement of the payment of the Payments had not
been delayed pursuant to this Section 6(B) and (B) commence paying the balance of the Payments in
accordance with the applicable payment schedules set forth in Section 6(A) above. For the
avoidance of doubt, it is intended that (1) each installment of the Payments provided in Section
6(A) above is a separate “payment” for purposes of Section 409A, (2) all Payments satisfy, to the
greatest extent possible, the exemptions from the application of Section 409A provided under of
Treasury Regulation 1.409A-1(b)(4)-(6), and 1.409A-1(b)(9)(iii), and (3) the Payments consisting of
COBRA premiums also satisfy, to the greatest extent possible, the exemptions from the application
of Section 409A provided under Treasury Regulation 1.409A-1(b)(9)(v).

 

 

          C. Golden Parachute Tax.

               (i) If any payment or benefit (including payments and benefits pursuant to this Agreement)
that Executive would receive in connection with a Change in Control from the Company or otherwise
(“Transaction Payment”) would (a) constitute a “parachute payment” within the meaning of Section
280G of the Internal Revenue Code of 1986, as amended (the “Code”), and (b) but for this sentence,
be subject to the excise tax imposed by Section 4999 of the Code (the “Excise Tax”), then the
Company shall cause to be determined, before any amounts of the Transaction Payment are paid to
Executive, which of the following two alternative forms of payment would maximize Executive’s
after-tax proceeds: (1) payment in full of the entire amount of the Transaction Payment (a “Full
Payment”), or (2) payment of only a part of the Transaction Payment so that Executive receives the
largest payment possible without the imposition of the Excise Tax (a “Reduced Payment”), whichever
amount results in Executive’s receipt, on an after-tax basis, of the greater amount of the
Transaction Payment notwithstanding that all or some portion of the Transaction Payment may be
subject to the Excise Tax. For purposes of determining whether to make a Full Payment or a Reduced
Payment, the Company shall cause to be taken into account all applicable federal, state and local
income and employment taxes and the Excise Tax (all computed at the highest applicable marginal
rate, net of the maximum reduction in federal income taxes which could be obtained from a deduction
of such state and local taxes). If a Reduced Payment is made, (x) the Transaction Payment shall be
paid only to the extent permitted under the Reduced Payment alternative, and Executive shall have
no rights to any additional payments and/or benefits constituting the Transaction Payment, and (y)
reduction in payments and/or benefits shall occur in the following order: (1) reduction of other
cash payments (if any); (2) cancellation of accelerated vesting of equity awards other than stock
options; (3) cancellation of accelerated vesting of stock options; and (4) reduction of other
benefits (if any) paid to Executive. In the event that acceleration of compensation from
Executive’s equity awards is to be reduced, such acceleration of vesting shall be canceled in the
reverse order of the date of grant.

               (ii) The independent registered public accounting firm engaged by the Company for general
audit purposes as of the day prior to the effective date of the Change in Control shall make all
determinations required to be made under this Section 6(C). If the independent registered public
accounting firm so engaged by the Company is serving as accountant or auditor for the individual,
entity or group effecting the Change in Control, the Company shall appoint a nationally recognized
independent registered public accounting firm to make the determinations required hereunder. The
Company shall bear all expenses with respect to the determinations by such independent registered
public accounting firm required to be made hereunder.

               (iii) The independent registered public accounting firm engaged to make the determinations
hereunder shall provide its calculations, together with detailed supporting documentation, to the
Company and Executive within fifteen (15) calendar days after the date on which Executive’s right
to a Transaction Payment is triggered (if requested at that time by the Company or Executive) or
such other time as reasonably requested by the Company or Executive. If the independent registered
public accounting firm determines that no Excise Tax is payable with respect to the Transaction
Payment, either before or after the application of the Reduced Amount, it shall furnish the Company
and Executive with an opinion reasonably

 

 

acceptable to Executive that no Excise Tax will be imposed with respect to such Transaction
Payment. Any good faith determinations of the accounting firm made hereunder shall be final,
binding and conclusive upon the Company and Executive.

          D. Change in Control. For purposes of this Section 6, “Change in Control” means the
occurrence, in a single transaction or in a series of related transactions, of any one or more of
the following events:

               (i) any Exchange Act Person (as defined in the Company’s 2007 Equity Incentive Plan) becomes
the owner, directly or indirectly, of securities of the Company representing more than fifty
percent (50%) of the combined voting power of the Company’s then outstanding securities other than
by virtue of a merger, consolidation or similar transaction. Notwithstanding the foregoing, a
Change in Control shall not be deemed to occur (a) on account of the acquisition of securities of
the Company by an investor, any affiliate thereof or any other Exchange Act Person from the Company
in a transaction or series of related transactions the primary purpose of which is to obtain
financing for the Company through the issuance of equity securities or (b) solely because the level
of ownership held by any Exchange Act Person (the “Subject Person”) exceeds the designated
percentage threshold of the outstanding voting securities as a result of a repurchase or other
acquisition of voting securities by the Company reducing the number of shares outstanding, provided
that if a Change in Control would occur (but for the operation of this sentence) as a result of the
acquisition of voting securities by the Company, and after such share acquisition, the Subject
Person becomes the owner of any additional voting securities that, assuming the repurchase or other
acquisition had not occurred, increases the percentage of the then outstanding voting securities
owned by the Subject Person over the designated percentage threshold, then a Change in Control
shall be deemed to occur;

               (ii) there is consummated a merger, consolidation or similar transaction involving (directly
or indirectly) the Company and, immediately after the consummation of such merger, consolidation or
similar transaction, the stockholders of the Company immediately prior thereto do not own, directly
or indirectly, either (a) outstanding voting securities representing more than fifty percent (50%)
of the combined outstanding voting power of the surviving entity in such merger, consolidation or
similar transaction or (b) more than fifty percent (50%) of the combined outstanding voting power
of the parent of the surviving entity in such merger, consolidation or similar transaction, in each
case in substantially the same proportions as their ownership of the outstanding voting securities
of the Company immediately prior to such transaction;

               (iii) there is consummated a sale, lease, exclusive license or other disposition of all or
substantially all of the consolidated assets of the Company and its subsidiaries, other than a
sale, lease, license or other disposition of all or substantially all of the consolidated assets of
the Company and its subsidiaries to an entity, more than fifty percent (50%) of the combined voting
power of the voting securities of which are owned by stockholders of the Company in substantially
the same proportions as their ownership of the outstanding voting securities of the Company
immediately prior to such sale, lease, license or other disposition; or

 

 

               (iv) over a twelve month period, individuals who, on the Effective Date, are members of the
Board (the “Incumbent Board”) cease for any reason to constitute at least a majority of the members
of the Board; provided, however, that if the appointment or election (or nomination for election)
of any new Board member was approved or recommended by a majority vote of the members of the
Incumbent Board then still in office, such new member shall, for purposes of the Plan, be
considered as a member of the Incumbent Board.

               For avoidance of doubt, the term Change in Control shall not include a sale of assets, merger
or other transaction effected exclusively for the purpose of changing the domicile of the Company.

     7. Remedies. Each of the parties to this Agreement will be entitled to enforce its rights
under this Agreement specifically, to recover damages by reason of any breach of any provision of
this Agreement and to exercise all other rights existing in its favor. The parties hereto agree
and acknowledge that money damages may not be an adequate remedy for any breach of the provisions
of this Agreement and that any party may in its sole discretion apply to any court of law or equity
of competent jurisdiction in accordance with Section 13 for injunctive relief in order to enforce
or prevent any violations of the provisions of this Agreement.

     8. Attorney Fees. If any arbitration proceeding or action at law or in equity, including any
action for declaratory or injunctive relief, is brought which arises out of this Agreement or the
termination of Executive’s employment, or which seeks to enforce or interpret this Agreement or to
seek damages for its breach, the prevailing party shall be entitled to recover reasonable attorney
fees from the non-prevailing party, which fees may be set by the court or arbitrator in the trial
of such action, or may be enforced in a separate action brought for that purpose, and which fees
shall be in addition to any other relief which may be awarded.

     9. Assignment. This Agreement is personal to Executive and may not be assigned in any way by
Executive without the prior written consent of the Company. This Agreement shall not be assignable
or delegable by the Company. Any attempted assignment by Executive or the Company shall be void.
Notwithstanding the preceding two sentences, this Agreement may be assigned or delegated by the
Company to any parent company, subsidiary, successor or affiliate (where such affiliate is at least
51% owned by the Company) of the Company. The rights and, obligations under this Agreement shall
inure to the benefit of and shall be binding upon the heirs, legatees, administrators and personal
representatives of Executive and upon the successors, affiliates, representatives and assigns of
the Company.

     10. Severability and Reformation. The parties hereto intend all provisions of this Agreement
to be enforced to the fullest extent permitted by law, and are intended to be limited to the extent
necessary so that they will not render this Agreement illegal, invalid, or unenforceable under
present or future law. If any provision of this Agreement or any application thereof shall be held
to be invalid, illegal or unenforceable, the validity, legality and enforceability of such
provision shall be fully severable, and this Agreement shall be construed and enforced as if such
illegal, invalid, or unenforceable provision were never a part hereof and the remaining provisions
shall remain in full force and effect and shall not be affected by the illegal, invalid, or
unenforceable provision or by its severance.

 

 

     11. Notices. All notices and other communications required or permitted to be given hereunder
shall be in writing and shall be deemed to have been duly given if delivered personally, mailed by
certified mail (return receipt requested) or sent by overnight delivery service, cable, telegram,
facsimile transmission or telex to the parties at the following addresses or at such other
addresses as shall be specified by the parties by like notice:

If to the Company:

7625 Smetana Lane

Eden Prairie, MN 55344

Attention: Chief Executive Officer

If to the Executive:

Brian P. Bell

c/o Compellent Technologies, Inc.

7625 Smetana Lane

Eden Prairie, MN 55344

Notice so given shall, in the case of notice so given by mail, be deemed to be given and received
on the fourth calendar day after posting, in the case of notice so given by overnight delivery
service, on the date of actual delivery and, in the case of notice so given by cable, telegram,
facsimile transmission, telex or personal delivery, on the date of actual transmission or, as the
case may be, personal delivery.

     12. Further Actions. Whether or not specifically required under the terms of this Agreement,
each party hereto shall execute and deliver such documents and take such further actions as shall
be necessary in order for such party to perform all of his or its obligations specified herein or
reasonably implied from the terms hereof.

     13. Governing Law and Venue. This Agreement is to be governed by and construed in accordance
with the laws of the State of Minnesota without giving effect to any choice or conflict of law
provision or rule that would cause the application of laws of any jurisdiction other than the state
of Minnesota. The parties agree that any dispute concerning this Agreement is to be brought in the
District Court in Hennepin County, Minnesota and consent to jurisdiction and venue therein.

     14. Term of Employment and Amendment. This Agreement will automatically terminate on the
earlier of (i) June 16, 2010 if no Change in Control has occurred by that date and (ii) a
termination of the Executive’s employment other than under the circumstances described in Section
6. If a Change in Control has occurred by that date, this Agreement will terminate on the date
that is eighteen (18) months and one (1) day after the effective date of the Change in Control;
provided, however, that no such termination shall affect the right to any earned but unpaid benefit
of the Executive whose termination date has occurred prior to such date, and such unpaid benefit
rights shall continue to be governed by the terms of this Agreement. The terms of this Agreement
may be renewed by mutual agreement of the parties hereto on or before June 16, 2010. This
Agreement may not otherwise be modified, amended or terminated other than in writing signed by both
parties hereto.

 

 

     15. Entire Agreement. This Agreement contains the entire understanding and agreement between
the parties, except as otherwise specified herein, and supersedes any other agreement between
Executive and the Company, whether oral or in writing, with respect to the subject matter hereof;
provided, however, that nothing herein shall supersede the acceleration provisions of any stock
option agreement by and between the Executive and the Company pursuant to the Company’s 2002 Stock
Option Plan, as amended (as the Executive shall be entitled to such acceleration benefits as well
as the acceleration benefits contained in Section 6(A)(iii) hereof with regard to such Prior Stock
Option Grants).

     16. No Waiver. No term or condition of this Agreement shall be deemed to have been waived,
except by a statement in writing signed by the party against whom enforcement of the waiver is
sought. Any written waiver shall not be deemed a continuing waiver unless specifically stated,
shall operate only as to the specific term or condition waived, and shall not constitute a waiver
of such term or condition for the future or as to any act other than that specifically waived.

     17. Counterparts. This Agreement may be executed in counterparts, with the same effect as if
both parties had signed the same document. All such counterparts shall be deemed an original,
shall be construed together and shall constitute one and the same instrument.

[signature page follows]

 

 

     In Witness Whereof, the parties have executed this Agreement as of the date first
above written.

THE COMPANY:

	 	 	 	 	 
	Compellent Technologies, Inc.	 	 
	 
	 	 	 	 
	By

	 	/s/ Philip E. Soran
 

President and CEO
	 	 
	 
	 	 	 	 
	EXECUTIVE:	 	 
	 
	 	 	 	 
	/s/ Brian P. Bell	 	 
	 	 	 
	Brian P. Bell	 	 

 

 

SCHEDULE 1

Position and Duties of Executive

Position:

Executive is employed in the following position with the Company: Vice President, Sales.

Duties:

Executive shall have the following duties: Overall management of global sales.

 

 

SCHEDULE 2

Compensation

Base Salary:

Executive shall receive an annual Base Salary of $210,000 for calendar year of 2008. Determination
of annual Base Salary beyond calendar year 2008 shall be made by mutual agreement of Executive and
the Company. The Base Salary shall be subject to all appropriate federal and state withholding
taxes and shall be payable on the Company’s regular payroll schedule, which currently is a
semi-monthly basis in twenty-six (26) equal installments per year.

Benefits:

Executive shall be eligible to participate in all benefit programs and plans that the Company
provides to its key management employees consistent with the policies and procedures of the
Company.

Bonus:

Executive shall be entitled to participate in a mutually agreed upon yearly Bonus Program, as in
effect from time to time, at the level determined by the Board.

Vacation:

Executive shall be entitled to accrue vacation days in accordance with the Company’s general
vacation accrual policy, to be taken with due observance of the interests of the Company. Upon
termination of this Agreement during a calendar year, compensation for vacation not used will be
calculated and compensated for on a pro rata basis. Executive shall also be entitled to such
holidays as are typically observed by the Company.

Reimbursement of Expenses:

The Company recognizes that Executive may incur legitimate business expenses in the course of
rendering services to the Company. Accordingly, the Company shall reimburse Executive for
reasonable business expenses to the extent and on the terms provided in the Company’s policies,
provided, however, that Executive shall not be reimbursed for any such expense that is not
substantiated, to the Company’s reasonable satisfaction, by way of invoice or other pertinent
documentation or information.

 

 

SCHEDULE 3

PROPRIETARY AGREEMENT

 

 

COMPELLENT TECHNOLOGIES, INC.

PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT

In consideration of my employment or the continuation of my employment with Compellent
Technologies, Inc., (the “Company”), and of other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, I agree that:

     1. Definitions.

(a) The term “Company” shall include any subsidiary, parent or other affiliate of Company,
subsidiaries of the parent company, any holding company related to Company or its parent and
any subsidiaries thereto.

(b) The term “Proprietary Information” shall include any and all information, that has
commercial value in the business in which the Company is or may become engaged and which is not
generally known to others, including, trade secrets, research, processes, structures, formulae,
data and know-how, improvements, inventions, code, computer software and programs, product
concepts, techniques, business and marketing plans, strategies, financial statements and
forecasts, customer lists and information about the Company’s employees, clients, consultants or
licensees.

          2. Ownership, Nondisclosure, and Protection of Proprietary Information. — All
Proprietary Information shall be the sole property of the Company and its assigns. Except as may
be necessary in the performance of my duties as an employee and only for the benefit of the
Company, I will keep in confidence and will not, during my employment by the Company or any time
thereafter, without the prior written consent of the Company’s President, use, publish, disseminate
or otherwise disclose any Proprietary Information of the Company, including the information of
others provided to the Company with restrictions on its use or further disclosure.

          3. Delivery of Documents and Data. In the event of the termination of my employment
by the Company or by me for any reason, I will deliver to the Company all documents, data, and
information of any nature pertaining to my work with the Company, I will not take with me or
deliver to anyone else any documents, data and information (or any reproduction) of any description
containing or pertaining to any Proprietary Information and I will sign and deliver the
“Termination Certification”, attached as Exhibit 2, to the Company.

          4. Disclosure of Inventions and other Information. I will promptly and fully disclose
and describe to the Company, all products, improvements, inventions, designs, ideas, works of
authorship or copyrightable works, discoveries, trademarks, trade secrets, formulae, processes,
techniques, know-how, and data, (collectively hereinafter called “Inventions”), whether or not
patentable, made or conceived or reduced to practice or learned by me, either alone or jointly with
others, during the period of my employment (whether or not during normal working hours) that are
related to or useful in the actual or anticipated business of the Company, or result from

 

 

tasks assigned me by the Company or result from use of premises or equipment owned, leased, or
contracted for by the Company.

          5. Assignment of and Assistance on Inventions.

(a) I hereby assign to the Company or to its nominee, the sole and exclusive ownership of
all my rights to such Inventions and to applications for letters patent, copyright
registrations and other associated rights in all countries.

(b) I further agree to assist the Company, at the Company’s expense, to apply for, obtain
and vest in the name of the Company or its nominee, letters patent, copyrights or other
analogous protection in any country throughout the world and any associated renewal or
restoration documents, including the execution of any documents and to do such other acts as
may be necessary in the opinion of the Company to preserve its rights against forfeiture,
revocation, abandonment or loss.

(c) This Agreement does not apply to an Invention for which no equipment, supplies,
facility, or trade secret information of the Company was used and which was developed
entirely on my own time, and (1) which does not relate (a) directly to the business of the
Company or (b) to the Company’s actual or demonstrably anticipated research or development,
or (2) which does not result from any work I perform for the Company.

(d) In the event the Company is unable, after reasonable effort, to secure my signature on
any patent, copyright or other analogous protection relating to an Invention, whether
because of my physical or mental incapacity or for any other reason whatsoever, I hereby
irrevocably designate and appoint the Company and its duly authorized officers and agents as
my agent and attorney-in-fact, to act for and in my behalf and stead to execute and file any
such application or applications and to do all other lawfully permitted acts to further the
prosecution and issuance of letters patent, copyright or other analogous protection thereon
with the same legal force and effect as if executed by me. My obligation to assist the
Company in obtaining and enforcing patents and copyrights for such Inventions in any and all
countries shall continue beyond the termination of my employment, for whatever cause, but
the Company shall compensate me at a reasonable rate after such termination for time
actually spent by me at the Company’s request on such assistance.

(e) I acknowledge that all original works of authorship which are made by me (solely or
jointly with others) within the scope of my employment and which are protectable by
copyright are being created as “works made for hire,” as that term is defined in the United
States Copyright Act (17 U.S.C. § 101). If such laws are inapplicable or in the event that
such works, or any part thereof, are determined by the Copyright Office or a court of
competent jurisdiction not to be works made for hire under the United States copyright laws,
this Agreement shall operate as an irrevocable and unconditional assignment by me to the
Company of all of my right, title and interest (including, without limitation all rights in
and to the copyrights throughout the world, including the right to

 

 

prepare derivative works and the right to all renewals and extensions) in the works for the
copyright term(s).

          6. No Breach of Duty. I represent that my performance of all the terms of this
Agreement and as an employee of the Company does not, and to the best of my present knowledge and
belief will not, breach any agreement or duty to keep in confidence proprietary information
acquired by me in confidence or in trust prior to my employment by the Company. I have not entered
into, and I agree I will not enter into, any agreement either written or oral in conflict herewith.
I am not at the present time restricted from being employed by the Company or entering into this
Agreement.

          7. No Prior Employer or Third Party Property. I acknowledge that Company does not
desire to receive any proprietary information in breach of my obligation to others and, I agree
that I will not disclose to Company or use in the performance of my duties for Company, any
proprietary information, materials or documents of a former employer or other third party that are
not generally available to the public without accompanying written authorization from such party.
I further acknowledge that I am not to breach any obligation of confidentiality or duty that I have
to former employers.

          8. Non-Competition.

(a) During the term of this Agreement and for a period of one (1) year after the termination of
this Agreement for any reason (or for such a lesser period of time as may be determined by a court
of law or equity to be a reasonable limitation), I shall not in any manner or capacity, including
without limitation as a proprietor, principal, agent, partner, officer, director, stockholder,
employee, consultant, or otherwise:

(i) Solicit, directly or indirectly, any director, officer or employee of Company to
discontinue that individual’s status of employment with Company, nor to become employed in
any activity similar to or competitive with the business of Company being conducted at the
time of termination of this Agreement within the territories in which Company conducts its
business operations;

(ii) Directly or indirectly solicit for the sale of or sell to any customer or prospective
customer with whom I had contact or for whom I had direct or indirect responsibility at any
time during my last year of employment with the Company any services, products, or processes
that are similar to or compete with the services, products or services then manufactured or
sold by the Company; except for those customers I have had a significant relationship with
prior to my entering into this agreement with Compellent and as
agreed to by Compellent. 

(iii) Solicit, request, advise, or induce any current or potential customer, supplier, or
other business contact of the Company to cancel, curtail, or otherwise adversely change its
relationship with the Company; or

 

 

(iv) Enter into or engage in, directly or indirectly, any software development or other
business that develops, manufactures, markets, sells, or promotes any services, products, or
processes which are similar to or competitive with any services, products, or processes of
the Company with which I worked at any time during the last year of my employment with the
Company or any services, products, or processes then in existence or under development at
the Company about which I shall have acquired Proprietary Information at any time during my
last year of employment with the Company.

     (b) Nothing herein shall prohibit me from holding shares or stock or warrants or debentures
in a company listed on a nationally or internationally recognized stock exchange, if I own no
more than five percent (5%) of such company’s shares entitled to vote at a meeting of its
shareholders.

          9. Remedies for Breach. I agree that any breach of this Agreement by me would cause
irreparable damage to the Company and that the remedy at law of Company will be inadequate. In the
event of such breach, the Company shall have, in addition to any and all remedies of law, the right
to an injunction, specific performance, or other equitable relief to prevent or redress the
violation of my obligations hereunder. If the provisions for the duration of the scope of or any
business activity covered by the agreement exceeds that which is determined to be valid and
enforceable under applicable law, such provision shall be construed to cover only that duration,
scope or activity that is determined to be valid and enforceable. I hereby acknowledge that such
provision shall be given the construction which renders the provisions valid and enforceable to the
maximum extent, not exceeding their express terms, possible under applicable law.

          10. Effective Date. This Agreement shall be effective as of the first day of my
employment by the Company, or (if my employment has already commenced), as of the date I sign this
Agreement.

          11. Governing Law and Venue. This Agreement is to be governed by and construed in
accordance with the laws of the State of Minnesota, without regard to principles of conflicts of
law.

          12. Entire Agreement. This Agreement replaces and supercedes any and all prior
written or oral agreement entered into between the parties relating to the subject matter hereof.

          13. Assignability. This Agreement shall be binding upon me, my heirs, executors,
assigns, and administrators, shall inure to the benefit of the Company, its successors, and
assigns, and shall survive the termination of my employment by the Company, regardless of the
manner of such termination.

          14. Severability. In the event that a court of competent jurisdiction declares a
provision of this agreement to be invalid for any reason, the remaining provisions shall not be
affected and shall remain enforceable. Further, such provision shall be reformed and construed

 

 

to the extent permitted by law so that it would be valid, legal and enforceable to the maximum
extent possible.

          15. Prior Inventions. All improvements, inventions, designs, ideas, works of
authorship, copyrightable works, discoveries, trademarks, copyrights, trade secrets, formulae,
processes, techniques, know-how and data relevant to the subject matter of my employment by the
Company which have been made or conceived or first reduced to practice by me alone or jointly with
others prior to my engagement by the Company shall be deemed “Inventions” for the purposes of this
Agreement except as set forth below:

          List of Pre Compellent Technologies, Inc. Employment Inventions and Writings

This Agreement does not apply to inventions or improvements in which you have an interest which
were made prior to your employment by the Company. To clearly identify any such items, list them
below by titles and approximate dates. Attach additional sheets if necessary.

	 	 	 	 	 
	Title

	 	 	 	Date
	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

Accepted by Employee:

	 	 	 	 	 
	/s/ Brian P. Bell

	 	 	 	07/09/2003
	 

	 	 	 	 
	Signature of Employee

	 	 	 	Date
	 
	 	 	 	 
	Brian P. Bell
	 	 	 	 
	 

	 	 	 	 
	Type or Print Name

	 	 	 	 

	 	 	 	 	 	 	 
	Accepted by Compellent Technologies, Inc.:	 	 	 	 
	 
	 	 	 	 	 	 
	By: Philip Soran

	 	/s/ Philip E. Soran
	 	 	 	07/18/2003
	 

	 	 
	 	 	 	 
	Its: President/CEO

	 	 	 	 	 	     Date

 

 

Attachment 1

TERMINATION CERTIFICATION

     1. This is to certify that I do not have in my possession, nor have I failed to return, any
devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings,
blueprints, sketches, materials, equipment, other documents or property, or reproductions of any
aforementioned items belonging to Compellent Technologies, Inc., any subsidiary, parent or other
affiliate of Company, subsidiaries of the parent company, any holding company related to Company or
its parent and any subsidiaries thereto (collectively, the “Company”).

     2. I further certify that I have complied with all the terms of the Company’s Proprietary
Information and Inventions Agreement signed by me, including the reporting of any Inventions and
original works of authorship (as defined therein), conceived or made by me (solely or jointly with
others) covered by said Agreement.

     3. I further agree that I will preserve as confidential, all Proprietary Information as
defined in the Proprietary Information and Inventions Agreement, and hereby assign to the Company
all rights in inventions, copyrights, trade secrets or trademarks, servicemarks or trademarks,
consistent with said Agreement.

     4. I acknowledge and agree that, I have complied with, and will continue to comply with, after
the termination of my employment by the Company, all other provisions contained in the Proprietary
Information and Inventions Agreement.

Accepted by Employee:

	 	 	 
	 
	 

	 	 
	Signature of Employee

	 	Date
	 
	 
	 	 
	 

	 	 
	Type or Print Name

	 	Social Security Number

	 	 	 	 	 	 	 
	Accepted by Compellent Technologies, Inc.	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	Date
	 
	 	 	 	 	 	 
	Its:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

 

 

SCHEDULE 4

RELEASE AGREEMENT

     I understand that this Release, together with the rights to severance payments and benefits
set forth in the employment agreement between the Company and me dated June 16, 2008 (the
“Employment Agreement”) to which this Release is attached, constitutes the complete, final and
exclusive embodiment of the entire agreement between the Company, affiliates of the Company and me
with regard to the subject matter hereof. I am not relying on any promise or representation by the
Company that is not expressly stated therein. Certain capitalized terms used in this Release are
defined in the Employment Agreement.

     I hereby confirm my obligations under my Proprietary Agreement with the Company.

     Except as otherwise set forth in this Release, I hereby generally and completely release the
Company and its current and former directors, officers, employees, stockholders, shareholders,
partners, agents, attorneys, predecessors, successors, parent and subsidiary entities, insurers,
affiliates, and assigns (collectively, the “Released Parties”) from any and all claims,
liabilities and obligations, both known and unknown, that arise out of or are in any way related
to events, acts, conduct, or omissions occurring prior to my signing this Release (collectively,
the “Released Claims”). The Released Claims include, but are not limited to: (1) all claims
arising out of or in any way related to my employment with the Company or its affiliates, or the
termination of that employment; (2) all claims related to my compensation or benefits, including
salary, bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe
benefits, stock, stock options, or any other ownership interests in the Company or its affiliates;
(3) all claims for breach of contract, wrongful termination, and breach of the implied covenant of
good faith and fair dealing; (4) all tort claims, including claims for fraud, defamation,
emotional distress, and discharge in violation of public policy; and (5) all federal, state, and
local statutory claims, including claims for discrimination, harassment, retaliation, attorneys’
fees, or other claims arising under the federal Civil Rights Act of 1964 (as amended), the federal
Americans with Disabilities Act of 1990, the federal Age Discrimination in Employment Act of 1967
(as amended) (“ADEA”), the federal Employee Retirement Income Security Act of 1974 (as amended),
and the California Fair Employment and Housing Act (as amended). Notwithstanding the foregoing,
the following are not included in the Released Claims (the “Excluded Claims”): (1) any rights or
claims for indemnification I may have pursuant to any written indemnification agreement with the
Company to which I am a party, the charter, bylaws, or operating agreements of the Company, or
under applicable law; or (2) any rights which are not waivable as a matter of law. In addition,
nothing in this Release prevents me from filing, cooperating with, or participating in any
proceeding before the Equal Employment Opportunity Commission or the Department of Labor, except
that I hereby waive my right to any monetary benefits in connection with any such claim, charge or
proceeding. I hereby represent and warrant that, other than the Excluded Claims, I am not aware
of any claims I have or might have against any of the Released Parties that are not included in
the Released Claims.

     I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have
under the ADEA. I also acknowledge that the consideration given for the Released

 

 

Claims is in addition to anything of value to which I was already entitled. I further
acknowledge that I have been advised by this writing, as required by the ADEA, that: (a) the
Released Claims do not apply to any rights or claims that arise after the date I sign this Release;
(b) I should consult with an attorney prior to signing this Release (although I may choose
voluntarily not to do so); (c) I have twenty-one (21) days to consider this Release (although I may
choose to voluntarily to sign it sooner); (d) I have seven (7) days following the date I sign this
Release to revoke the Release by providing written notice to an officer of the Company; and (e) the
Release will not be effective until the date upon which the revocation period has expired
unexercised, which will be the eighth day after I sign this Release (“Effective Date”).

     I hereby represent that I have been paid all compensation owed and for all hours worked, I
have received all the leave and leave benefits and protections for which I am eligible, and I have
not suffered any on-the-job injury for which I have not already filed a workers’ compensation
claim.

     I acknowledge that to become effective, I must sign and return this Release to the Company so
that it is received not later than twenty-one (21) days following the date it is provided to me,
and I must not revoke it thereafter.

	 	 	 	 	 
	 	 	Employee
	 
	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	Date:exv10w1

Exhibit 10.1

SUPPLY AGREEMENT

	 	 	 
	BETWEEN:

	 	QUANTRX BIOMEDICAL CORPORATION, a Nevada corporation (“QuantRx”);
	 
	 	 
	AND:

	 	CYTOCORE, INC., a Delaware
corporation (“CytoCore”).
	 
	 	 
	DATED:

	 	May 19, 2008.

R E
C I T A L S:

     A. QuantRx® has developed and/or owns the rights to certain technology relating to
the collection, transfer and use for diagnostics of vaginal fluids, including all biological
materials
contained in same, which QuantRx® has branded “PadKit®”. CytoCore is engaged in the
business of developing and commercializing products for the screening and/or diagnosis of
cancers and other diseases of the female reproductive system.

     B. CytoCore desires to pursue the development of a diagnostic product utilizing
QuantRx’ “PadKit®” technology for specific uses,
and to utilize QuantRx® for manufacturing
of
one or more products employing QuantRx’s “PadKit®” technology, all subject to and on the

terms and conditions set forth below.

A G
R E E M E N T:

     In consideration of the foregoing Recitals, which are by this reference incorporated in this
Development and Supply Agreement (this “Agreement”), and in consideration of the mutual promises,
representations, warranties and covenants set forth below, the parties agree as follows:

     1. DEFINITIONS. When used in this Agreement, the following terms have the meanings set forth
below.

          1.1
“Pad” means the untreated QuantRx PadKit® miniform interlabial pad as specified in
Schedule B (the “Specifications”). Without limiting the other provisions of this Section, the Pad
specifically does not include PadChekTM, where the pad comprises or contains the diagnostic method.

          1.2 “Product” means an assembly or kit as specified in Schedule B comprising one or more Pads
plus one or more ancillary components packaged together.

          1.3
“Technology” means the detection, identification, diagnosis, staging, evaluation and/or
classification of reactive, dysplastic and malignant changes in human cervical,
endometrial, ovarian and other cells as contained in samples collected using and/or recovered from
the Pad.

Page 1
– SUPPLY AGREEMENT

 

 

          1.3.1 For the purposes of this agreement, the “Technology” shall also include the
ability to use samples collected using or recovered from the Pad with any method for
detecting and identifying or typing Human Papilloma Virus, herein “HPV”.

          1.4 “Data” means descriptive; clinical, scientific; manufacturing and other
information related to the Pad, the Product and the Technology as
described in 1.1 - 1.3 above
that has been, is being, and/or will be collected or developed by QuantRx, including any such
information that is required in order to obtain and/or maintain regulatory approvals.

          1.5 “Distribution Channels” means: (a) sales to physicians; (b) sales to
hospitals for their own use on their premises; (c) sales to laboratories; and (d) sales to
distributors
for use in (a) and (b) above.

          1.6 “Territory” means all countries of the world.

     2. LICENSE
FEES. CytoCore agrees to pay the following fees to QuantRx:

          2.1 Upon mutual execution of this Agreement, CytoCore will pay to QuantRx
a fully earned, nonrefundable license fee for use of the Data of $100,000.00 (the “License
Fee”).
CytoCore shall additionally pay to QuantRx a milestone payment of $50,000 upon or before
Regulatory approval of the first CytoCore product utilizing the Technology; and a milestone
payment of $50,000 upon or before the sale of $1,000,000 of CytoCore products which utilize
the Technology. In addition, CytoCore will pay to QuantRx a fee of $5,556 per month for
eighteen (18) months, starting the 1st day of the month following the Effective
date provided that
this Agreement is not previously terminated by either Party. CytoCore reserves the right to
prepay without penalty any amounts due QuantRx under this Section.

          2.2 CytoCore shall purchase such number of units of Product per year as set
forth in Section 7, at such prices as are set forth on Schedule D.

          2.3 All fees payable pursuant to this Section 2 shall be made by wire transfer,
cashier’s check or other good funds payment. Any undisputed fee not paid within five days of
its
due date shall bear interest at 12.0% per annum from its due date
until paid in full.

          2.4 In the event any undisputed fee payable pursuant to this Section 2 is not
paid within 10 days after written demand from QuantRx for payment, including any accrued
interest thereon, QuantRx may terminate this Agreement with respect to the items attributable
to
the unpaid portion. In such event, the rights and duties of the parties shall be as set
forth in
Section 18 below, except that any fully paid license shall survive termination or expiration
for
any reason.

3.0 GRANT. QuantRx grants to CytoCore an exclusive right to use, market, sell, have sold, and
distribute the Product and Technology in the Distribution Channels in the Territory, whether
directly or contractually through independent agents or distributors. The foregoing Grant and
rights are subject to all terms and conditions set forth in this
Agreement. The Grant does not act
to relinquish QuantRx’ rights to the Technology nor to the Product in other Distribution Channels
and does not grant, by implication or otherwise, any other rights to CytoCore of any other
technologies owned, invented or discovered by QuantRx, whether past, present or future. Upon

Page 2
– SUPPLY AGREEMENT

 

 

payment of the license fees set forth above, QuantRx further grants to CytoCore a perpetual,
irrevocable worldwide right and license to use the Data as needed, at CytoCore’s discretion, to
obtain regulatory approval for marketing CytoCore’s products and
services.

CytoCore
shall have the right to sub-license portions or all of its rights under this Agreement
in those countries where CytoCore’s ability to enter the market directly is limited or precluded
by local content and/or local ownership laws and/or regulations
assign to the JV.

4.0
REGULATORY CLEARANCE. CytoCore shall be solely responsible,
during the term of this Agreement
for pursuing, obtaining and maintaining each regulatory clearance required for CytoCore’s
sale of the Products to be distributed and sold in the Distribution Channels within the Territory,
and for fulfilling the obligations as the holder of such clearances.

	4.1	 	Without limiting the foregoing, CytoCore shall be responsible for the payment of
all costs and expenses for all submissions and clinical trials required to obtain such
clearance, except that CytoCore may use Data as set forth above. CytoCore shall also be
responsible for compliance with the medical device reporting (“MDR”) requirements of the
FDA, as specified in 21 CFR Part 803 and foreign counterparts thereto, and corrections or
removal requirements, as specified in 21 CFR Part 806 and foreign counterparts thereto, and
to notify QuantRx of all MDR and corrections or removal filings. CytoCore agrees to
immediately notify QuantRx in writing of recalls, and corrections or removal actions.

5.
SUPPLY OBLIGATIONS. During the term of this Agreement and provided the Products remain
compliant with the Specifications therefore and subject to permitted terminations as set forth in
Section 14.4, CytoCore shall only purchase Products from QuantRx and no others.

	5.1	 	During the term of this Agreement, QuantRx will exclusively manufacture and supply to
CytoCore such quantities of the Products as CytoCore shall require from time to time
in accordance with this Agreement.

	5.1.1	 	Notwithstanding the foregoing, if QuantRx or its designee is unable to supply the
quantities of Product required by CytoCore or if within a market the ability of QuantRx or
its designee to supply Product or Product components is restricted or precluded by law or
regulation, CytoCore shall be granted a license to have made and sell Product, and to
procure Product or components thereof from suitable parties other than QuantRx, provided
that CytoCore pays QuantRx for such  right a royalty of 8% of the price, net of
shipping, taxes, and duties paid to such a party for Pads.
	 
	5.2	 	No QuantRx Right to Distribute and Market. No right to market, sell or distribute
any Product, as defined herein, in any Distribution Channel is granted by CytoCore to
QuantRx under this Agreement. Additionally, QuantRx has no right to the use of CytoCore
trademarks, copyrights or similar property, except as required and approved by CytoCore for
the marking of packages and other manufacturing operations, intended for the exclusive use
by CytoCore. QuantRx will mark the Products, packaging and packaging inserts with patent
markings appropriate to reflect the Patents and as otherwise directed
by CytoCore.

	5.3	 	Shipping. CytoCore will issue Purchase Orders for the Products to QuantRx, and
QuantRx will ship such orders to CytoCore or to such location or recipient as directed by
CytoCore

Page 3
– SUPPLY AGREEMENT

 

 

	 	 	after receipt of the order from CytoCore, and in accordance with shipping instructions on
purchase orders received by QuantRx from CytoCore. Shipping and handling charges will be
charged on the invoices, or be collect to CytoCore as agreed upon by the Parties. Shipping
times will be mutually and reasonably agreed upon by the Parties, and based on the size of the
order and type of shipping. Notwithstanding the foregoing, all orders will be shipped within
60 days of receipt of purchase order, unless otherwise agreed.
	 
	5.4	 	Regulatory. QuantRx shall be solely responsible, during the term of this Agreement
and
prior to its first commercial order for Product from QuantRx, to pursue, obtain and
maintain
all records, filings, approvals, and materials necessary to comply with manufacturing the
Product in full compliance with US FDA, European EC, and other agency
requirements.
without limiting the foregoing, QuantRx shall maintain current establishment
registration
and device listings, as specified in 21 CFR Part 807 and as required by the country in which
manufacture of Product is performed.
	 
	5.5	 	Samples. QuantRx shall supply to CytoCore such amounts of product samples as mutually
agreed to be necessary to generate customers or potential customers for the Products and for
the purpose of clinical trials of Product at a price equal to its direct cost plus 35%.
	 
	5.6	 	Force Majeure. QuantRx will use its best efforts to
fill accepted orders as
promptly as
practicable, subject to unanticipated delays caused by governmental orders, actions or
requirements, transportation conditions, inclement weather, labor or material shortage,
strike, riot, terrorist act, fire, natural disaster or other cause beyond QuantRx’ control. In
all
cases, QuantRx will use its best efforts to advise CytoCore in advance of any inability to
make full and timely delivery of Products to CytoCore. Each party shall not be liable for
failure to perform hereunder due to governmental orders, actions or requirements,
transportation conditions, inclement weather, labor or material
shortage, strike, riot,
terrorist
act, fire, natural disaster or other causes beyond such non-performing party’s reasonable
control.
	 
	5.7	 	Forecasting. CytoCore will provide to QuantRx every month a written nonbinding 3-month
rolling forecast of CytoCore’s proposed requirements for the Products, including Product
samples by SKU. QuantRx agrees to maintain the capacity to supply up to 15.0% over such
monthly forecast.
	 
	5.8	 	Failure of Supply. If QuantRx is unable to timely supply ordered Product within 10
days
after request to cure same from CytoCore, then CytoCore may pursue manufacturing of the
Product by a qualified third party. However all other terms and conditions of this Agreement
will remain in effect.
	 
	6.0	 	MINIMUM QUANTITIES.
	 
	6.1	 	Amounts. CytoCore agrees to purchase from QuantRx the following minimum quantities of
Product in each of the following annual periods, beginning with the date of first commercial
order. Quantities will be determined after unit pricing has been agreed to. CytoCore Inc.
agrees to purchase a minimum of $25,000 the first year rising $15,000 each subsequent
year to $40,000 year 2, $65,000 year 3, $80,000 year 4 and $95,000 year 5.

Page 4
– SUPPLY AGREEMENT

 

 

	 	 	The parties will negotiate in good faith commercially reasonable amounts for subsequent annual
periods and years. Any excess purchases above the agreed minimum in one annual period
shall not be carried over to the following annual period. In the event the parties cannot agree
on minimum volumes after the third annual period, such disagreement shall be legitimate
basis for termination without cause of this Agreement by one party under Section 18 below, upon
not fewer than 90 days’ prior written notice.
	 
	6.2	 	Cure by CytoCore. In the event that at the end of any annual period, CytoCore has
not met the agreed minimum purchase requirement for such period, CytoCore shall,
within 45 days after the end of such annual period, in its sole discretion, either (a) pay
the difference between the units actually purchased and the minimum purchase requirement; or
(b) purchase such additional units in order to meet the minimum purchase requirement for such
prior period.
	 
	7.0	 	MANUFACTURING.
	 
	7.1	 	Manufacturing Obligations. QuantRx shall manufacture the Products in compliance with
the
Specifications, which may be changed by prior written agreement of the parties, and in
compliance with Quality System Regulation (“QSR”) requirements set forth in 21 CFR Part 820
and in conformance with the requirements of ISO 13485.
	 
	7.2	 	Quality Control. QuantRx shall, at its cost, perform all quality control tests
required by
regulatory authorities and reasonably required by CytoCore. In addition, prior to the
shipment of each order to CytoCore, for each manufacturing lot included in said shipment,
QuantRx shall deliver to CytoCore lot qualification samples in accordance with a mutually
agreed upon sampling plan. CytoCore shall perform acceptance testing on such samples
from each lot and shall in a timely manner notify QuantRx whether each lot satisfies the
mutually agreed upon acceptance criteria. Acceptance of a manufacturing lot of Product by
CytoCore constitutes approval for QuantRx to ship the balance of said lot to CytoCore in
accordance with Section 5.3 above. Lot qualification samples will not be considered to be
part of the Amounts listed in Section 7.1 above.
	 
	7.3	 	Changes to Product. QuantRx shall notify CytoCore in writing at least 90 days prior to any
proposed changes in its manufacturing procedures, materials, equipment or processes which
affect Product design, form or  function. As and to the extent reasonably agreed in writing by
the parties and as permitted by applicable law. QuantRx may change a Product and any
Specifications related to it. QuantRx agrees that no such changes will cause CytoCore to lose
regulatory approvals for the Products, and shall pay the cost of any resubmissions to
regulatory agencies required as a result of such changes.
	 
	7.4	 	Non-Conformity and Defective Products. If CytoCore notifies QuantRx that any Products
supplied by QuantRx do not conform to the Specifications or are otherwise defective (including
notification of why CytoCore believes the Products to be defective), then QuantRx shall, at
its cost, replace such defective quantity of the Products and at QuantRx’ cost ship the
replacement Products as reasonably directed by CytoCore to CytoCore or CytoCore’s customer at
the location of such defective quantity of the Products, to be shipped within 30 working days
after the receipt of the defective Product. QuantRx shall

Page 5
–SUPPLY AGREEMENT

 

 

	 	 	keep and maintain adequate records of all quality control testing, instrumentation validation
and stability studies and, upon CytoCore’s reasonable request, shall provide CytoCore with
access to such records and the results of any testing. At its sole discretion and cost,
QuantRx may instruct CytoCore to return some or all of the non-conforming and/or defective
Product to QuantRx or to destroy such product.
	 
	7.5	 	Recalls, Corrections and Removals. QuantRx and CytoCore agree that if either party
should
discover or become aware of any fact, condition, circumstance or event (whether actual or
potential) concerning or related to the Products which may reasonably require recall,
correction or removal, such party shall promptly communicate such fact, condition,
circumstance or event to the other party within 24 hours. In the event any governmental entity
or regulatory body requests that a Product be recalled, or the parties agree, after
consultation with each other, that a Product should be recalled or removed, the parties shall
take all appropriate remedial actions with respect to such recall or withdrawal of the
Product.
	 
	7.6	 	Audit. CytoCore reserves the right to audit QuantRx’ (and its subcontractors’ and
designees’) facilities, at CytoCore’s sole expense, as
reasonably necessary to verify
compliance by QuantRx with the terms and conditions of this Agreement. Exercise by
CytoCore of such right shall be subject to the following conditions: (a) with good cause (for
example, QuantRx’ failure to remedy problems) as needed to verify that the cause has
been
successfully resolved in accordance with all applicable regulatory requirements; (b) without
good cause shown, CytoCore shall be entitled to conduct up to two audits per 12-month
period; (c) CytoCore audits shall be conducted only after at least five days’ advance written
notice of the audit is provided by CytoCore to QuantRx; and (d) all information gathered
and data reviewed during any such audit shall be “Confidential Information” subject to the
provisions of Section 16 below. QuantRx shall at all times maintain complete and
accurate
books and records pertaining to performance of its manufacturing and other obligations set
forth in this Agreement. QuantRx shall provide commercially reasonable cooperation to
CytoCore in the performance of audits by or on behalf of CytoCore, including without
limitation, providing reasonable access to documents relevant to the manufacture of
Products sold to CytoCore, subject to the provisions of Section 16.

8.
CUSTOMER SERVICE AND COMPLAINTS. CytoCore shall, at its cost, furnish all technical service,
assistance and support required by its customers or users of the Products and
arising out of sales of Products made by or on behalf of CytoCore. CytoCore will provide
QuantRx with copies of all inquiries, complaints and requests pertaining to the Products in a
timely manner. QuantRx shall be solely responsible for investigation of any Product complaints,
such investigations being carried out in accordance with the requirements of 21CFR820 and the
results of such investigations being provided to CytoCore in a timely manner.

9.
LIMITED WARRANTY OF MANUFACTURER. CytoCore’s sole remedies for defective
Products are set forth in Section 7.4 above. Except as expressly provided above, Manufacturer
shall not be liable for any damages, costs, expenses or claims (whether based on contract, tort or
otherwise), or for breach of any warranty, express or implied, or for any other obligation or
liability on account of the Products covered by this Agreement, including special, punitive or
consequential damages, even if advised of the possibility thereof. EXCEPT AS REQUIRED BY

Page 6 – SUPPLY AGREEMENT

 

 

APPLICABLE LAW, AND EXCEPT AS EXPRESSLY PROVIDED ABOVE, QUANTRX DISCLAIMS ALL WARRANTIES WITH
RESPECT TO THE PRODUCTS, EXPRESS OR IMPLIED, INCLUDING WARRANTIES OF MERCHANTABILITY AND OF
FITNESS FOR A PARTICULAR PURPOSE.

10. PACKAGING.

	10.1	 	Packaging. CytoCore will procure and provide to QuantRx, all required artwork, in
any or
all appropriate languages, for bulk or individual unit packaging, labeling and package
insertions (collectively, “Packaging”) to be used by QuantRx for the Products to be shipped
to CytoCore. CytoCore shall also provide any necessary EAN codes. All Products shall be
packaged in lots as set forth in the Specifications. All Packaging shall include the brand
name of the Product as designated by CytoCore.
	 
	10.2	 	Packaging Ownership Rights. CytoCore is and shall be the copyright owner or licensee
of
all designs and artwork used in connection with packaging for the Product. To the extent
third-party trademarks or other rights are necessary for certain customers, CytoCore
represents that it has or will have obtained the right from such third parties for CytoCore the
right to use such trademarks or other rights solely for such purpose.
	 
	10.3	 	Product Inserts. All Product Inserts must be pre-approved by CytoCore and be in
full
compliance with all labeling laws in each jurisdiction in which Products are distributed.
	 
	10.4	 	Advertising. All advertising and contents thereof shall the sole responsibility of
CytoCore.

11. PRODUCT PRICING AND PAYMENT.

	11.1	 	Purchase Price. QuantRx shall charge CytoCore, and CytoCore shall pay for the
quantities
of Product delivered by QuantRx pursuant to this Agreement, at the purchase prices set forth
in the attached Schedule C to be completed in good faith and initialed by the parties. If the
parties are unable to agree on the purchase prices (each, a “Purchase Price”) by the date of
receipt by CytoCore of the 510k clearance for the Product to be manufactured by QuantRx,
then the provisions of Section 19.3 below shall be utilized by the parties to establish same,
with all costs and expenses to be borne 50/50 by QuantRx and CytoCore. Each Purchase
Price is and shall be CIF/POE. Duties, fees, and local transportation shall the responsibility
of CytoCore.
	 
	11.2	 	Price Adjustment. No adjustment in a Purchase Price shall be permitted during the initial
annual period following CytoCore’s first order. Thereafter, but not more than once during
any calendar year. QuantRx may adjust a Purchase Price according to the formula provided
in Schedule C (QuantRx direct cost plus 35%, direct costs being verifiable by audit) upon at
least 90 days’ advance written notice to CytoCore. Adjusted Purchase Prices shall apply to
Product orders quoted by CytoCore after the effective date of said notice. In no event shall
any annual increase in the Purchase Price exceed the previous year’s Purchase Price by
greater than 10.0%, unless approved, in writing, by both parties hereto. QuantRx shall use
best efforts to achieve price reductions each year through volume discounts and
manufacturing efficiencies 11.3 Payment. CytoCore agrees to pay each undisputed
invoice
of QuantRx within 30 days after CytoCore’s receipt of the Products that are the subject of

Page 7 – SUPPLY AGREEMENT

 

 

	 	 	the invoice. If CytoCore reasonably disputes any invoice for good cause and in good faith,
CytoCore will notify QuantRx within 10 days of invoice receipt, stating the specific reason(s)
for the dispute.
	 
	11.4	 	Late Payment. Unpaid amounts will bear interest at 12.0% per annum from the due date
until paid in full, calculated
on a non-compounding daily basis, in addition to
QuantRx’ other rights and remedies set forth in Section 18 below.
	 
	11.5	 	Title; Risk of Loss. Title to ordered Products will
pass to CytoCore upon the later
of tender of delivery or payment. Risk of loss will pass to CytoCore upon tender of delivery.

12. INTELLECTUAL PROPERTY. QuantRx will retain full ownership of the Intellectual
Property which underlies the Technology and Product(s).

13. TERM AND TERMINATION.

	13.1	 	This Agreement shall become effective when fully executed by both parties and the License
Fee is paid. This Agreement shall have an initial term of five years (beginning on its
execution), with automatic renewals of five years each, unless (a) terminated by either party,
(b) one party gives notice of termination at least 90 days prior to the end of the initial
or any
renewal term, or (c) terminated as set forth below.

	13.2	 	CytoCore may terminate this agreement by providing thirty (30) day advance written
notification of such termination to QuantRx at any time within 18 months of the effective
date or providing ninety (90) day advance written notice thereafter. In the event of such
termination, CytoCore shall be responsible for the payment of any milestone payments
and/or fees earned by QuantRx prior to the termination date and for payment for any
Product ordered, but not yet paid for, during this period.
	 
	13.3	 	QuantRx may either terminate this agreement 24 months from the Execution Date, or
accept $100,000 to delay this option for an additional
12 months, should CytoCore not achieve the milestones found in
Section 2.1 herein.

	 	13.3.1	 	Should the milestones shown in 2.1 herein not be met within 36 months from the
Execution Date hereon, the agreement shall be deemed to be terminated.

	13.4	 	CytoCore may terminate this Agreement for cause upon notice and failure to cure within 10
days of notice under the following conditions:

	 	13.4.1	 	Defective Products are received more than twice in any year
	 
	 	13.4.2	 	QuantRx fails to timely supply Products in the amounts ordered by CytoCore; or
	 
	 	13.4.3	 	QuantRx’s supply of the Products are enjoined by reason of alleged infringement or
found to be infringing and a non-infringing substitute is not timely provided.

	13.5	 	Termination of this Agreement for any reason by either party shall not relieve the parties of
any obligations accrued prior to the effective date of the
termination.

Page 8 – SUPPLY AGREEMENT

 

 

	13.6	 	If a party should fail to perform  under this Agreement or should violate any term of this
Agreement, then the other party may give written notice of the default and, if the defaulting
party fails to fully correct the default within 60 days, then the other party shall have the right
to terminate this Agreement
	 
	13.7	 	Upon termination of this Agreement:

     (a) All rights, licenses and privileges granted to CytoCore under this Agreement shall
immediately cease and terminate, but any such termination will not affect the rights and
obligations of the parties respecting remedies for breach of this Agreement;

     (b) All obligations arising out of events prior to the effective termination date,
including without limitation orders previously accepted and obligations to pay for delivered
Products, shall be performed in accordance with the terms and conditions of this Agreement;

     (c) If terminated by QuantRx, CytoCore shall have the right to fulfill any contract
obligations for the sale of Products that it may have upon its books when termination notice
was received by CytoCore. If, at the time of termination, CytoCore does not have sufficient
Product in inventory to meet these contract obligations, QuantRx shall supply CytoCore with
sufficient product to meet these obligations under the then existing terms and
conditions. In addition, CytoCore has the right to sell unsold Product in its inventory for a
period of six months after termination; and

     (d) All sublicenses shall also be terminated by CytoCore unless otherwise extended by
QuantRx.

14. INDEMNITY AND LIMITATION OF LIABILITY.

	14.1	 	Indemnification by CytoCore.
 CytoCore shall indemnify, defend
and hold QuantRx and its Affiliates and
the officers, directors, employees,
agents and independent contractors of
each
of them harmless from and against any and all claims, demands, actions, suits, losses, damages,
liabilities, settlement amounts, costs or expenses (including reasonable attorneys’ fees and
costs) (collectively, “Claims”) arising out of or relating to: (a) CytoCore’s breach of this
Agreement; or (b) CytoCore’s gross negligence or willful misconduct or (c) any products
liability claims relating to CytoCore products excluding the Products provided by QuantRx
hereunder.

	14.2	 	Indemnification by QuantRx. QuantRx shall indemnify, defend and hold CytoCore,
its
Affiliates and the officers, directors, employees, agents and independent contractors of each
of them harmless from and against any and all Claims arising out of or relating to: (a)
QuantRx’ breach of this Agreement; or (b) QuantRx’ gross negligence or willful
misconduct; or (c) any products liability claims relating to use the Products.
	 
	14.3	 	Indemnification Procedure. The party seeking
indemnification (the “Indemnified Party”)
will give prompt written notice of any Claim of which the Indemnified Party is aware to the
other party (the “Indemnifying Party”); provided, however, that the failure by an
Indemnified Party to give such notice will not relieve the Indemnifying Party of its

Page 9 –SUPPLY AGREEMENT

 

 

		 	obligations under this Section 15, except to the extent that the failure results in the
failure of actual notice and the Indemnifying Party is damaged as a result. The Indemnified
Party will allow the Indemnifying Party to direct the defense and settlement of any such Claim,
with counsel of the Indemnifying Party’s choosing, and will provide the Indemnifying Party, at
the Indemnifying Party’s expense, with information and assistance reasonably necessary for the
defense and settlement of the Claim. In the event that the
Indemnifying Party fails to assume
the defense or settlement of any such Claim within 30 days after receipt of notice of same from
the Indemnified Party, the Indemnified Party shall have the right to undertake the defense,
appeal or settlement of such Claim at the expense of and for the account of the Indemnifying
Party. An Indemnifying Party will not be liable for any settlement of a Claim affected without
its reasonable written consent, nor will an Indemnifying Party settle any such Claim without
the reasonable written consent of the Indemnified Party. No Indemnifying Party will consent to
the entry of any judgment or enter into any settlement that does not include as an
unconditional term the giving by the claimant or plaintiff to the Indemnified Party a release
from all liability with respect to the Claim.

	14.4	 	Limitation of Liability. EXCEPT AS RELATED TO INDEMNIFICATION OBLIGATIONS HEREUNDER,
NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR CONSEQUENTIAL,
INCIDENTAL, INDIRECT, SPECIAL,
EXEMPLARY, OR PUNITIVE DAMAGES. EVEN IF SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF
SUCH DAMAGES.

15.0 REPRESENTATIONS AND WARRANTIES.

	15.1	 	No Conflicts. Each of QuantRx and CytoCore represents and warrants to the other that
it is
not a party to any agreement or covenant with any other person, and knows of no statute,
law, ordinance, regulations, rule, order or decree of a governmental authority, which
prohibits or restricts it from entering into and performing pursuant
to this Agreement.

	15.2	 	Compliance with Law. QuantRx and CytoCore each represents and warrants that it is,
and
will remain, in compliance with all applicable international, federal, provincial, state and
local laws, regulations and orders related to its respective business and duties under
this
Agreement. QuantRx specifically represents and warrants that the Product shall, as of
the
date of shipment to CytoCore or its customers, not be adulterated or misbranded within the
meaning of the U.S. Food, Drug, and Cosmetic Act, and any similar provisions of state and
local laws, regulations and orders, and shall comply with GMP requirements for such
products including but not limited to ISO 13485 and foreign equivalents. CytoCore
specifically represents and warrants that it will maintain the 510(k) clearance(s) for
the
manufacture of the Products from the FDA, including for any Product modification
requiring 510(k) clearance, and shall maintain such rights throughout the term of this
Agreement.

	15.3	 	Authorization – OuantRx. QuantRx represents and warrants that: (a) QuantRx has the
right to enter into this Agreement; (b) all necessary actions, corporate and otherwise, have
been taken to authorize QuantRx’ execution and delivery of this Agreement and the same is the
valid and binding obligation of QuantRx; (c) all licenses, consents and approvals necessary
for QuantRx to cany out all of the transactions contemplated in this Agreement have been

Page 10
– SUPPLY AGREEMENT

 

 

		 	obtained and (d) QuantRx has the experience and technical and physical capacity to
fulfill its obligations under this Agreement.

	15.4	 	Authorization – CytoCore. CytoCore represents and warrants that: (a)
CytoCore has the
right to enter into this Agreement; (b) all necessary actions, corporate and otherwise, have
been taken to authorize CytoCore’s execution and delivery of this Agreement and the same
is the valid and binding obligation of CytoCore; (c) all licenses, consents and approvals
necessary for CytoCore to carry out all of the transactions contemplated in this Agreement
have been obtained; and (d) CytoCore has the experience and technical and physical
capacity to fulfill its obligations under this Agreement.
	 
	15.5	 	QuantRx represents and warrants that the Products will comply to the specifications
therefore and that such Products do not infringe any proprietary right of any third
party.

	15.6	 	Insurance. Each party shall, during the term of this Agreement, at its sole cost and
expense,
obtain and keep in force a policy of comprehensive general liability insurance with bodily
injury, death and property damage limits of at least $2,000,000 per occurrence and $2,000,000
aggregate, including product liability coverage. On execution of this Agreement, and on each
anniversary of same, each party shall furnish a certificate of insurance, in form reasonably
acceptable to the other party, evidencing such insurance and providing for 30 days’ prior
written notice to the other party of any cancellation, nonrenewal or change of such insurance
coverage.

16. CONFIDENTIALITY.

	16.1	 	Confidential Information. The term “Confidential Information” means: (a) the terms
and conditions of this Agreement; and (b) a party’s information, data, knowledge and know-how
(in whatever form and however communicated) relating directly or indirectly to the disclosing
party (or to its Affiliates or contractors), as to its or their respective businesses,
employees, operations, methods, processes, trade secrets, plans, properties, products,
markets or financial positions) that is delivered or disclosed by such party, its Affiliate
or any of their respective officers, directors, partners, members, employees, contractors,
agents or shareholders to the other party in writing, electronically, orally or through
visual means, or that such party learns or obtains aurally, through observation or analyses,
interpretations, compilations, studies or evaluations of such information, data, knowledge or
know-how, and (c) any information that would be reasonably deemed to be confidential when
considering the nature of such information and the circumstances surrounding its disclosure.
Without limiting the foregoing, CytoCore acknowledges and agrees that the proprietary
information
and technology comprising the components, design and makeup of the Products are
proprietary and trade secrets of  QuantRx and constitute Confidential
Information.
Without limiting the foregoing, QuantRx acknowledges and agrees that all information submitted
by CytoCore in support of regulatory approvals, excluding such Data as are licensed
hereunder, are the Confidential Information of CytoCore. Each party will limit access to
Confidential Information to only those of its employees, agents and consultants having a
need-to-know in connection with this Agreement and will take reasonable steps to ensure no
unauthorized person has access to the Confidential Information. Each party will advise in
writing its employees, agents and consultants to whom disclosure of Confidential Information
is made

Page 11
– SUPPLY AGREEMENT

 

 

		 	of the obligations under this Agreement to protect the Confidential Information. Each
party will be liable for the unauthorized disclosure of Confidential Information by
its employees, agents and consultants.

	16.2	 	Loss of Status. Confidential Information shall not include information,
data, knowledge
and know-how that, as shown by written records: (a) is known to the receiving
party prior to
disclosure to or receipt by such party without breach of an obligation of
confidentiality; (b)
is in the public domain prior to disclosure to a party; (c) enters the public domain
through no
violation of this Agreement after disclosure to such party; or (d) is independently
developed
by a party without reliance in any way on Confidential Information.
	 
	16.3	 	Use and Disclosure. Each party shall keep the Confidential Information
communicated to it
by the other party confidential and shall not either itself use or disclose such
information or
provisions to any third person without the prior written approval of the other party
in each
instance, except that either party may disclose such provisions to the extent required
by law
or other demand under lawful process, provided the receiving party gives the
disclosing
party prompt notice prior to such disclosure to allow the disclosing party to make a
reasonable effort to obtain a protective order or otherwise protect the
confidentiality of such
information. Subject to the requirements of applicable securities laws and
regulations of
applicable stock exchanges, neither CytoCore nor QuantRx shall make any news releases
or
any other public disclosure with respect to the transactions contemplated by this
Agreement
without the prior written consent of the other party, which consent may be withheld
by such
other party in its sole discretion; provided, however, that the foregoing shall not
prohibit the
disclosure of this Agreement, subject to customary written confidentiality
restrictions, to
persons with whom either party intends to enter into a sale, merger, capital raising
or other
similar strategic transaction.

	16.4	 	Injunction. Either party aggrieved by breach or threatened breach of this
Section 21 shall be
entitled to bring an action to prevent, stop or otherwise obtain redress, including
specific
performance, injunctive relief or other available equitable remedy, without having to
post
bond or other undertaking therefor, and without necessity of providing 60 days’ notice
pursuant to Section 17.3 above.

17. SUBCONTRACTING AND ASSIGNMENT.

	17.1	 	Assignment. Except as provided in this Agreement, CytoCore may not
assign or transfer
this Agreement or any rights or duties under it, voluntarily or by operation of law,
without
the prior written consent of QuantRx. Any attempted assignment or transfer not in
compliance with this Agreement shall be void and of no force or effect. A
reorganization or
merger with another corporation or other person shall not itself, however, constitute
a
prohibited assignment.

	17.2	 	Sale or Sale of Division. Notwithstanding Section 17.1 above,
either party hereto may sell
and transfer its entire rights and obligations under this Agreement to a third person
at any
time without prior written consent of the other Party.

Page 12
– SUPPLY AGREEMENT

 

 

	17.3	 	Subcontracting. Either Party may subcontract its obligations hereunder provided that each
Party is responsible for the actions of its subcontractors.

18. NOTICES. Any notice, under this Agreement shall be in writing and be deemed given upon written
receipt of delivery, delivered via overnight courier in each case addressed to the following
addresses:

	 	 	 	 	 
	 

	 	If to QuantRx:
	 	QuantRx Biomedical Corporation
	 

	 	 	 	Attn: CFO
	 

	 	 	 	100 South Main Street, Ste. 300
	 

	 	 	 	Doylestown, PA 18901
	 

	 	 	 	Fax (267) 880-1596
	 
	 	 	 	 
	 

	 	If to CytoCore:
	 	CytoCore, Inc.
	 

	 	 	 	Attn: legal counsel
	 

	 	 	 	414 North Orleans St., Ste. 510
	 

	 	 	 	Chicago, IL 60610
	 

	 	 	 	Fax (312) 222-9580

or to such other address as a party may provide by notice given in the same manner.

19. MISCELLANEOUS.

	19.1	 	Definition of Affiliate. The term “Affiliate” means any person controlled by, under
common control with or which controls a party to this Agreement, control being defined as
either having ownership of a majority of the equity of such party generally eligible to elect a
majority of the governing body of such party, or the right by agreement or otherwise to
direct the actions of such party (including, without limitation as a general partner of a
partnership or as a managing member of a limited liability company).
	 
	19.2	 	Applicable Law. This Agreement shall be governed by and construed in accordance with
the laws and decisions of the state of Deleware, without regard to the conflicts of law rules
of such state.
	 
	19.3	 	Mediation. In the event of a dispute between the parties, which cannot be resolved
in the
course of ordinary business, either party may submit a written request for a meeting of senior
executives to resolve such dispute. In the event that such a request is submitted, the
receiving
party shall make a senior executive available to discuss the matter within 10 business days.
If
the matter is not resolved by such meeting, either party may send a written request that the
dispute be submitted to mediation. Such request shall include the names of at least three U.S.
based mediators or mediation services, each of which must have appropriate professional
training and experience in business mediation. The parties shall work in good faith to
agree on
a mediator within five business days of receipt of the request, and the mediation shall be
scheduled as soon as reasonably practicable, but in any case within 30 days of receipt of the
request. The mediation shall occur in the principal office city of the request recipient. All
costs of mediation shall be borne equally by the parties. In the event that a mutually
agreeable
resolution cannot be reached through mediation, either party may proceed to use the courts or
other legal methods to achieve resolution. Nothing in this Section 19.3 shall be construed as

Page 13 –SUPPLY AGREEMENT

 

 

	 	 	preventing either party from using the courts directly and immediately for injunctive
relief pursuant to Section 16 in the event that imminent harm is threatened, or as preventing
either party from proceeding to litigation in the event that mediation is unsuccessful.
	 
	19.4	 	Further Assurance. Each party shall execute and deliver, at the request of the
other party, such further documents or instruments, and shall perform
such further acts, that
may be reasonably required to fully accomplish the intent of this Agreement.
	 
	19.5	 	Waiver of Breach. The waiver by either party of a breach of any term or provision of
this
Agreement shall not be construed as a waiver of any subsequent breach of the same or any
other term or provision by either party.
	 
	19.6	 	Modification. This Agreement may not be amended or modified except in a writing
executed by the parties.
	 
	19.7	 	Assignment. This Agreement shall be binding upon and operate to the benefit of the
parties
and their successors and permitted assigns.
	 
	19.8	 	Relationship of Parties. The relationship of the parties under this Agreement is that of
independent contractors. Nothing contained in this Agreement is intended or is to be
construed so as to constitute the parties as partners or joint venturers, or either party as an
agent or employee of the other. Neither party has any express or implied right under this
Agreement to assume or create any obligation on behalf of or in the name of the other, or to
bind the other party to any contract, agreement or undertaking with any third party, and no
conduct of the parties shall be deemed to infer such right.
	 
	19.9	 	Severability. If any provision of this Agreement is finally held to be invalid, illegal or
unenforceable by a court or agency of competent jurisdiction, that provision shall be
severed or shall be modified by the parties so as to be legally enforceable (and to the extent
modified, it shall be modified so as to reflect, to the extent possible, the intent of the
parties), and the validity, legality and enforceability of the remaining provisions shall not
be affected or impaired in any way.
	 
	19.10	 	Interpretation. Time is of the essence of this Agreement in all particulars. All monetary
figures are in U.S. Dollars. The term “days” means calendar
days. As the context may
require in this Agreement, the use of any gender (male, female or neuter) shall include any
other gender, and the singular shall include the plural and the plural the singular. The word
“person” includes individual, joint venture, partnership, limited liability company,
corporation, association, trust or any other entity or organization. The captions heading the
sections and subsections of this Agreement are inserted for convenience of reference only,
and are not to be used to define, limit or describe the scope or Intent of any term, provision,
section or subsection of this Agreement. Each Schedule described in and attached to this
Agreement is incorporated in it. This Agreement may be executed in several counterparts,
each of which shall be deemed an original but all of which taken together shall constitute
one and the same instrument.
	 
	20.11	 	Integration. THIS AGREEMENT CONTAINS THE FINAL AND CONCLUSIVE
AGREEMENT AND UNDERSTANDING OF THE PARTIES WITH RESPECT TO

Page 14
– SUPPLY AGREEMENT

 

 

THE SUBJECT MATTER OF IT, AND SUPERSEDES ALL PRIOR AND CONTEMPORANEOUS AGREEMENTS,
PROMISES, REPRESENTATIONS, AGREEMENTS OR UNDERSTANDINGS, ORAL OR WRITTEN, BETWEEN THE
PARTIES RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT, including without
limitation any Heads of Agreement.

EXECUTED
by the parties through their duly authorized representatives as of the date first
written above.

	 	 	 	 	 	 	 	 	 	 	 
	QUANTRX BIOMEDICAL CORPORATION	 	 	 	CYTOCORE, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By

	 	/s/ William H. Fleming
 

	 	 	 	By
	 	/s/ Robert F. McCullough Jr.
 

	 	 
	 

	 	William H. Fleming, Ph. D., CSO
	 	 	 	 	 	Robert F. McCullough Jr., CEO	 	 
	 
	 

	 	QUANTRX
	 	 	 	 	 	5/14/08               CYTOCORE	 	 

Page 15
– SUPPLY AGREEMENT

 

 

Schedule A
— DATA

Data includes all data from all clinical trials utilizing the Products and all information
pertaining to manufacturing and regulatory approvals as exists or becomes available during this
Agreement. Data also means that descriptive and manufacturing information that is required for use
in regulatory submissions.

Schedule A

 

 

Schedule B
— Products and Specifications

Schedule B of this Agreement comprises a Bill of Materials that defines a composition of the
Product that is intended for use in clinical trials in the US. The Parties recognize that laws,
regulations, customs and/or practices in various countries may dictate or otherwise require that
the labeling and/or other aspects of the composition of Product for clinical trial use or
commercial sale differ from that specified in Schedule B. Therefore, from time to time CytoCore may
request and QuantRx may agree to produce a version of the Product that conforms to the laws and
regulations of a particular country or market. Each such version shall be defined by a Bill of
Materials and shall be assigned a unique identification. Each such Bill of Materials agreed upon in
writing by the Parties shall be incorporated by reference into Schedule B of this Agreement.

Initial Specifications:

          1.
Outer carton (SKU), having the outside dimensions of: 5.5x7x2.5 inches

          2.
Tyvek envelop, self sealing, having the outside dimensions of: 9x6 inches

          3.
Sarstadt five (5) part biological mailing vial

          4. 19ml CytoLyt® per kit, dispensed into (3) vial

          5. Miniforms, untreated (2)

          6. Vinyl glove (1)

          7. Clinical study label for envelop (1) and SKU

          8. Single color Product Insert for Clinical (trial) use

NOTE: the above applies to Product for use in clinical trials and will be revised to reflect
the configuration of the commercial product upon receipt of
regulatory clearance.

NOTE: Multiple versions of the Product, each with a unique SKU, will be required. A separate
Bill of Materials (Specification) will be prepared for each version. These versions will differ
in terms of labeling and package inserts based upon the laws and regulations of the intended
destination country; whether the Product is intended for use in a clinical trial; or whether the
product is intended for use as a professional sample.

Schedule B

 

 

Schedule C

Purchase Prices: CytoCore will purchase each “PadKit®” at QuantRx’s direct cost plus a 35%
markup.

Price for each PadKit in CY2008 shall be US$5.00 each. To be revised based upon year 1 order
quantity

Schedule D

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}]]