Document:

exv10w6

 

Exhibit 10.6

LIMITED EXCLUSIVE

SUBLICENSE AGREEMENT

For

DIELECTRIC WALL ACCELERATOR TECHNOLOGY

Between

TOMOTHERAPY INCORPORATED

And

COMPACT PARTICLE ACCELERATION CORPORATION

Confidential treatment has been requested
for portions of this exhibit.  The copy filed herewith omits the information subject
to the confidentiality request.  Omissions are designated as [ * ].  A complete version
of this exhibit has been filed separately with the Securities and Exchange Commission.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	1. BACKGROUND
	 	 	1	 
	2. DEFINITIONS
	 	 	2	 
	3. LICENSE GRANT
	 	 	8	 
	4. SUBLICENSING RIGHTS AND OBLIGATIONS
	 	 	9	 
	5. FEES, ROYALTIES, AND PAYMENTS
	 	 	9	 
	6. DUE DILIGENCE
	 	 	12	 
	7. ROYALTY AND PROGRESS REPORTS
	 	 	14	 
	8. BOOKS AND RECORDS
	 	 	16	 
	9. LIFE OF THE AGREEMENT
	 	 	17	 
	10 TERMINATION
	 	 	18	 
	11. DISPOSITION OF LICENSED PRODUCTS ON HAND UPON TERMINATION
	 	 	18	 
	12. PATENT PROSECUTION AND MAINTENANCE
	 	 	19	 
	13. PATENT INFRINGEMENT
	 	 	21	 
	14. USE OF NAMES AND TRADEMARKS
	 	 	22	 
	15. LIMITED WARRANTY
	 	 	22	 
	16. INDEMNIFICATION
	 	 	23	 
	17. INSURANCE
	 	 	24	 
	18. WAIVER
	 	 	25	 
	19. ASSIGNABILITY
	 	 	26	 
	20. LATE PAYMENTS
	 	 	26	 
	21. NOTICES
	 	 	26	 
	22. GOVERNING LAWS; VENUE; ATTORNEYS FEES
	 	 	27	 
	23. PATENT MARKING
	 	 	27	 
	24. GOVERNMENT APPROVAL OR REGISTRATION
	 	 	28	 
	25. COMPLIANCE WITH LAWS
	 	 	28	 
	26. FORCE MAJEURE
	 	 	29	 
	27. UNITED STATES PREFERENCE
	 	 	29	 
	28. PROPRIETARY INFORMATION
	 	 	29	 
	29. MISCELLANEOUS
	 	 	30	 
	EXHIBIT A — LICENSED PATENTS
	 	 	32	 
	EXHIBIT B — RIGHTS GRANTED AND PERFORMANCE OBLIGATIONS
	 	 	35	 
	EXHIBIT C — FEES AND ROYALTIES
	 	 	40	 
	EXHIBIT D — SCHEDULE
	 	 	43	 

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LIMITED EXCLUSIVE SUBLICENSE AGREEMENT

For DIELECTRIC WALL ACCELERATOR

This
sublicense agreement (“Agreement”) is effective on April 25, 2008 (the “Effective Date”)
by and between TomoTherapy, Incorporated (“TomoTherapy”) under its exclusive license with Lawrence
Livermore National Security, LLC as amended (“LLNS”), and Compact Particle Acceleration Corporation
(“LICENSEE”). TomoTherapy and LICENSEE are referred to jointly as “Parties.” This Agreement and
the resulting license are subject to overriding obligations to the Federal Government pursuant to
the provisions of TomoTherapy’s exclusive license agreement with LLNS and LLNS’s Contract No.
DE-AC52-07NA27344 with the DOE for the operation of the Lawrence Livermore National Laboratory
(“LLNL”).

	1.	 	BACKGROUND
	 
	1.1	 	Certain inventions characterized as Dielectric Wall Accelerator (“DWA”) technology
(“Invention”) described in LLNL patent applications and patents listed in Exhibit A (LICENSED
PATENTS) were made at LLNL, are covered by Patent Rights as defined in Article 2
(DEFINITIONS), and are subject to an exclusive license between TomoTherapy and LLNS, as
amended (“Underlying License”).
	 
	1.2	 	The U.S. Government has previously been granted a nontransferable, paid-up, nonexclusive,
irrevocable license to use the Invention by, or on behalf of, the U.S. Government throughout
the world.
	 
	1.3	 	TomoTherapy and LLNL have been parties to a cooperative research and development agreement
referred to hereafter as the “CRADA” Agreement No. TC02109.0 as amended, for purposes of
developing a Particle and Radiotherapy System based on LLNL’s DWA technology. Concurrent
with the execution of this Agreement, the CRADA shall transfer from TomoTherapy to LICENSEE
pursuant to a separate Transfer Agreement by and among LICENSEE, TomoTherapy and LLNL.
	 
	1.4	 	LICENSEE is interested in acquiring certain rights to those patents and patent applications
listed in Exhibit A (LICENSED PATENTS) of this Agreement, and any additional patents, patent
applications, and copyrightable works that are either added as a
result of expansion of the fields of use or are developed under the Statement of Work of

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	 	 	the
CRADA and by the LLNL DWA team on related projects that would be useful for the development,
manufacture, and use of the technology. TomoTherapy is willing to grant such rights under
the terms set forth herein, with the understanding that TomoTherapy’s ability to amend the
terms and conditions are subject always to LLNS’ agreement and incorporation of any
amendments or modifications in the Underlying License.
	 
	1.5	 	The Parties intend that royalties due under this Agreement will be calculated and paid on
Sales of the Licensed Products or Licensed Services by LICENSEE.
	 
	1.6	 	LICENSEE recognizes the need to practice due diligence in the development of Licensed Patents
in accordance with the Agreement’s terms and conditions to maintain the sublicense and to
acquire rights to additional fields of use. In addition, both Parties acknowledge that the
U.S. Government has certain march-in rights in accordance with 48 CFR 27.304-1 (g) and 15 USC
3710a(b)(1)(B) and (C).
	 
	1.7	 	As of the Effective Date, TomoTherapy has no knowledge of any pending or threatened claim
related to the Licensed Patents or the Licensed Method, and it has not granted to any third
party any license, option, or other right that conflicts with, or could conflict with, if
exercised, the license, options, and other rights granted by it under this Agreement.

THEREFORE, the Parties agree as follows:

	2.	 	DEFINITIONS
	 
	 	 	As used in this Agreement, the following terms, whether used in the singular or plural, will
have the following meanings:
	 
	2.1	 	“Affiliate” of LICENSEE means any entity which, directly or indirectly, Controls LICENSEE, is
Controlled by LICENSEE, or is under common Control with LICENSEE. “Control” means (i) having
the actual, present capacity to elect a majority of the directors of such affiliate, (ii)
having the power to direct at least fifty percent (50%) of the voting rights entitled to elect
directors, or (iii) in any country where the local law will not permit foreign equity
participation of a majority, ownership or control,

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	 	 	directly or
indirectly, of the maximum percentage of such outstanding stock or voting rights permitted
by local law. LICENSEE does not include “Affiliate.”
	 
	2.2	 	“Field of Use” is the applications or uses defined in Exhibit B (RIGHTS GRANTED AND
PERFORMANCE OBLIGATIONS).
	 
	2.3	 	“Joint Venture” means any separate legal entity established pursuant to an agreement between
a third party and LICENSEE and/or sublicensee to constitute a vehicle for a joint effort, in
which the separate entity manufactures, uses, purchases, Sells, or acquires Licensed Products
from LICENSEE. LICENSEE does not include “Joint Venture.”
	 
	2.4	 	“Licensed Method” means any process or method the use or practice of which, but for the
license granted in this Agreement, would infringe, or contribute to, or induce the
infringement of, any Patent Rights.
	 
	2.5	 	“Licensed Patents” means:

	 	2.5.1	 	U.S. patents and U.S. patent applications specified in Exhibit A (LICENSED
PATENTS), and U.S. patents resulting from these applications, continuations of these
applications, divisionals, and continuation-in-part applications resulting from these
applications only to the extent, however, that Valid Claims in the continuation-in-part
applications are entirely supported in the specification and entitled to the priority
date of the parent application;
	 
	 	2.5.2	 	reissues of 2.5.1.
	 
	 	2.5.3	 	foreign patent applications filed under Article 12 (PATENT PROSECUTION AND
MAINTENANCE) and patents resulting from these applications, continuations of these
applications, divisionals, and continuation-in-part applications only to the extent,
however, that Valid Claims in the continuation-in-part are entirely supported in the
specification and entitled to the priority date of the patent application; provided
LICENSEE has not breached any obligation to pay foreign fees set forth in this
Agreement.

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	2.6	 	“Licensed Product” means all kits, compositions of matter, materials, articles of
manufacture, and products the manufacture, use, Sale, offer for Sale, or import of which, but
for the license granted in this Agreement, would infringe, or contribute to or induce the
infringement of any Patent Rights, or would require the performance of the Licensed Method.
	 
	2.7	 	“Licensed Service” means the use of Licensed Products or Licensed Method to provide a
service. Neither Licensed Service nor Licensed Method includes the maintenance or servicing
of a Licensed Product.
	 
	2.8	 	“Net Invoice Price” means the gross invoice selling price by the ultimate seller (whether
LICENSEE or a sublicensee) for the Sale of a Licensed Product or Licensed Service, less the
following items, but only to the extent that they actually pertain to the Sale of such
Licensed Product or Licensed Service:

	 	2.8.1	 	Allowances actually granted to customers for rejections, returns, and prompt
payment and volume discounts (in amounts customary to the trade);
	 
	 	2.8.2	 	Freight, transport packing, insurance charges associated with transportation;
and
	 
	 	2.8.3	 	Taxes (including without limitation, sales and use taxes), tariffs or
import/export duties based on Sales when included in the gross invoice price, but not
value-added taxes or taxes assessed on income derived from Sales.

	2.9	 	“Net Sale” means the Net Invoice Price, except in the instances described in Subparagraphs
(2.9.1), (2.9.2), (2.9.3) and (2.9.4) of this Paragraph.

	 	2.9.1	 	For any Relationship-Influenced Sale of a Licensed Product or Licensed
Service, Net Sales will be based on the Net Invoice Price at which the
Relationship-Influenced Sale Purchaser resells such Licensed Product or Licensed
Service;
	 
	 	2.9.2	 	In those instances where Licensed Product or Licensed Service is not Sold, but
is otherwise exploited, the Net Sales for such Licensed Product or Licensed Service
will be the Net Invoice Price of products or services of similar kind and quality, Sold
in similar quantities, currently being offered for Sale by LICENSEE and/or

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	 	 	 	any sublicensee. Where such products or services are not currently Sold or offered
for Sale by LICENSEE and any sublicensees, or others, then the Net Sales will be
LICENSEE’s and/or any sublicensee’s cost of manufacture of Licensed Product or the
cost of conducting the service, determined by LICENSEE’s and/or any sublicensee’s
customary accounting procedures, plus LICENSEE’s average gross margin less any
amounts attributable to the items set forth in Paragraphs 2.8.1 through 2.8.3 above;
	 
	 	2.9.3	 	In those instances where LICENSEE or a sublicensee acquires and subsequently
Sells Licensed Product or Licensed Service previously Sold to which an earned royalty
accrued hereunder, Net Sales will mean the Net Invoice Price upon Sale of such Licensed
Product or Licensed Service, as applicable, by LICENSEE or the sublicensee, less the
Net Invoice Price of the immediately preceding Sale to LICENSEE or such sublicensee.
	 
	 	2.9.4	 	In those instances where LICENSEE or a sublicensee leases Licensed Products or
otherwise provides Licensed Products or Licensed Services to a third party for
consideration paid over a period of time, Net Sales will mean the Net Invoice Price of
each such discrete payment actually made by the third party to LICENSEE, less any
amounts attributable to the items set forth in Paragraphs 2.8.1 through 2.8.3 above.

	2.10	 	“New Developments” means inventions, or claims to inventions, which constitute advancements,
developments or improvements, whether or not patentable and whether or not the subject of any
patent application, which are: (a) not sufficiently supported by the specification of a
previously-filed patent or patent application within the Patent Rights to be entitled to the
priority date of the previously-filed patent or patent application; and (b) not otherwise
commercially valuable to LICENSEE’s commercialization of the Licensed Patents within the Field
of Use.
	 
	2.11	 	“Patent Rights” means the Valid Claims of Licensed Patents to the extent licensed to
TomoTherapy by LLNS. This definition of Patent Rights excludes any rights in and to New
Developments.

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	2.12	 	“Related Party” means a corporation, firm or other entity with which, or individual with
whom, LICENSEE and or any sublicensee (or any of their respective stockholders, subsidiaries
or Affiliates) have an agreement, understanding, or arrangement (for example, but not by way
of limitation, an option to purchase stock or other equity interest, or an arrangement
involving a division of revenue, profits, special discounts, rebates, or allowances) which is
entirely unrelated to the Sale or exploitation of the Licensed Products or Licensed Services
without which such other agreement, understanding, or arrangement, the amounts, if any,
charged by LICENSEE or sublicensee to such entity or individual for the Licensed Product or
Licensed Service would be higher than the Net Invoice Price actually received.
	 
	2.13	 	“Relationship-Influenced Sale” means a Sale of a Licensed Product, or any exploitation of the
Licensed Product or Licensed Method, by LICENSEE and/or any sublicensee to (i) an Affiliate;
(ii) a Joint Venture; or (iii) a Related Party.
	 
	2.14	 	“Relationship-Influenced Sale Purchaser” means the purchaser of Licensed Product or Licensed
Service in a Relationship-Influenced Sale.
	 
	2.15	 	“Sale” means the act of selling, leasing or otherwise transferring, providing, or furnishing
for use for any consideration. Correspondingly, “Sell” means to make or cause to be made a
Sale, and “Sold” means to have made or caused to be made a Sale. It shall not be deemed a
Sale under this Agreement for LICENSEE to transfer any Licensed Products to a customer, where
the customer utilized the Licensed Products predominantly for research purposes and LICENSEE
receives for such Licensed Products an amount equal to or less than LICENSEE’s actual cost to
manufacture such Licensed Products.
	 
	2.16	 	“Valid Claim” means a claim of a patent or patent application in any country that (i) has not
expired; (ii) has not been disclaimed; (iii) has not been cancelled or superseded, or if
cancelled or superseded, has been reinstated; and (iv) has not been revoked, held invalid, or
otherwise declared unenforceable or not allowable by a tribunal or patent authority of
competent jurisdiction over such claim in such country from which no further appeal has or may
be taken.

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	2.17	 	“Medical Field of Use” means medical applications of all types, including without limitation
both human and animal diagnostics and therapeutic applications and all research uses designed
to lead to such applications. 
	 
	2.18	 	“Particle and Radiotherapy Field of Use” means the medical use of x-rays, protons, and light
and heavy ion charged particles in therapeutic applications.
	 
	2.19	 	“Commercial DWA Field of Use” means all commercial applications, both medical and industrial,
but excludes National Security DWA Field of Use. Commercial DWA includes but is not limited
to the Medical Field of Use, the Particle and Radiotherapy Field of Use, isotope generation,
radiology, radiography, and other applications where particle accelerators are commercially
used other than in the National Security DWA Field of Use.
	 
	2.20	 	“National Security DWA Field of Use” means the use of DWA for applications in fulfillment of
the national security mission of the United States. Such applications include, but are not
limited to, flash x-ray radiography, compact neutron sources and other applications where
compact accelerators are strategically used for the fulfillment of the national security
mission.
	 
	2.21	 	“Category 1 Patents” means patents resulting from patent applications and records of
invention in the Field of Use that were generated by the LLNL DWA team and in existence prior
to the effective date of the Underlying License.
	 
	2.22	 	“Category 2 Patents” means patents resulting from patent applications and records of
invention in the Field of Use that were generated by the LLNL DWA team during the course of
the CRADA, but funded by parties other than TomoTherapy or LICENSEE. LICENSEE understands
that since Category 2 Patents are generated by funds from parties other than TomoTherapy or
LICENSEE, access to Category 2 Patents entails the possibility of additional license fees due
at the time that Category 2 Patents may be added to this Agreement by amendment, such
additional license fees being subject to the limitations described in this Agreement.

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	2.23	 	“Category 3 Patents” means patents resulting from patent applications and records of
invention generated by the LLNL DWA team since the effective date of the Underlying License
and during the course of the CRADA in the Field of Use funded by TomoTherapy or LICENSEE.
	 
	2.24	 	“First Commercial Acceptance” means the first sign-off of an acceptance of a Licensed Product
by a customer of LICENSEE or a sublicensee that is not an Affiliate.
	 
	3.	 	LICENSE GRANT
	 
	3.1	 	The license rights granted to LICENSEE by TomoTherapy are set forth in Exhibit B (RIGHTS
GRANTED AND PERFORMANCE OBLIGATIONS).
	 
	3.2	 	The license granted hereunder will be subject to the overriding obligations to the U.S.
Government including those set forth in 35 U.S.C. §200-212 and applicable governmental
implementing regulations and the obligation to report on utilization of the Invention set
forth in 37 CFR §401.14(h).
	 
	3.3	 	Should TomoTherapy choose to exercise its option to purchase certain shares held by
shareholders of LICENSEE pursuant to the terms of the Shareholder Agreement entered into by
and among LICENSEE, TomoTherapy and other holders of all Series A Common Stock, and the holder
of Series B Common Stock (hereinafter referred to as the “Shareholder Agreement”), the license
rights granted to LICENSEE for the Medical Field of Use and/or the Particle and Radiotherapy
Field of Use shall automatically revert to TomoTherapy at the exercise of the Call Right as
that term is defined in the Shareholder Agreement (“Reversion Date”). TomoTherapy shall then
assume all rights and responsibilities related to the Medical Field of Use and/or the Particle
and Radiotherapy Field of Use incurred or required to be paid after the Reversion Date,
including but not limited to: (i) responsibility for all of LICENSEE’s costs as set forth in
Paragraph 12 of this Agreement for Licensed Patents; (ii) all milestone and royalty payments
as set forth in Paragraph 6 of this Agreement; and (iii) any sublicensing rights and
obligations as set forth in Paragraph 4 of this Agreement. To the extent Licensed Patents
are or may be useful for fields of use other than the Medical Field of Use and/or

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	 	 	the Particle and Radiotherapy Field of Use, TomoTherapy shall share patent prosecution costs
incurred after the Reversion Date equally with LICENSEE.
	 
	4.	 	SUBLICENSING RIGHTS AND OBLIGATIONS
	 
	4.1	 	The sublicensing rights granted to LICENSEE by TomoTherapy are set forth in Exhibit B (RIGHTS
GRANTED AND PERFORMANCE OBLIGATIONS), Paragraph B.2 (Sublicensing Rights).
	 
	4.2	 	LICENSEE must include in any sublicense all the rights and obligations set forth in
Paragraphs 1.6 and 3.2 of this Agreement.
	 
	4.3	 	LICENSEE must require sublicensees to provide it with copies of all progress reports and
royalty reports in accordance with the provisions of this Agreement, and LICENSEE will collect
and deliver to TomoTherapy all such reports due from sublicensees.
	 
	4.4	 	LICENSEE must include in all sublicenses the notice that upon termination of this Agreement
or the Underlying License for any reason, either TomoTherapy or LLNS, at its sole discretion,
will determine whether any or all sublicenses will be canceled or assigned to TomoTherapy or
LLNS.
	 
	4.5	 	LICENSEE will notify TomoTherapy of each sublicense granted hereunder and provide TomoTherapy
with a complete copy of each executed sublicense within thirty (30) days of issuance of the
sublicense.
	 
	4.6	 	Consideration owed to TomoTherapy will be paid to TomoTherapy on or before the due date of
the royalty report applicable to the quarter in which consideration was finally due and owing
to LICENSEE under the sublicense. LICENSEE will collect from the sublicensees and will pay to
TomoTherapy all fees, royalties, and the cash equivalent of any consideration due TomoTherapy.
	 
	5.	 	FEES, ROYALTIES, AND PAYMENTS

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	5.1	 	Fees and royalties due on Net Sales of Licensed Products or Licensed Services will be as
specified in this Article 5, Exhibit C (FEES AND ROYALTIES), and Article 7 (ROYALTY AND
PROGRESS REPORTS) of this Agreement.
	 
	5.2	 	As partial consideration for the rights granted to LICENSEE, LICENSEE will pay to TomoTherapy
milestone payments as set forth in Exhibit C.
	 
	5.3	 	As partial consideration for all the rights granted to LICENSEE, LICENSEE will pay
TomoTherapy minimum annual royalties as set forth in Exhibit C.
	 
	5.4	 	As partial consideration for all the rights granted to LICENSEE, LICENSEE will pay to
TomoTherapy earned royalties at the rate set forth in Exhibit C.
	 
	5.5	 	Earned royalties shall accrue when LICENSEE receives payment for Licensed Products or
Licensed Services, or if no such payment is to be received, when such Licensed Products or
Licensed Services are delivered in a manner constituting a Net Sale as defined in Article 2
(DEFINITIONS), Paragraph 2.9, and no further deliverables are due to the customer by LICENSEE
or sublicensee.
	 
	5.6	 	Payment for earned royalties will include all royalties accrued up to the last day of the
most recently completed calendar quarter, and such payment shall be made on the dates
specified below:
	 
	 	 	February 28 for the calendar quarter ending December 31;
	 
	 	 	May 31 for the calendar quarter ending March 31;
	 
	 	 	August 31 for the calendar quarter ending June 30; and
	 
	 	 	November 30 for the calendar quarter ending September 30.
	 
	5.7	 	All consideration due TomoTherapy shall be payable in United States dollars. When Licensed
Products or Licensed Services are sold for monies other than United States dollars, earned
royalties will first be determined in the foreign currency of the country in which such
Licensed Products or Licensed Services were Sold and then converted into
equivalent United States dollars. The exchange rate will be the one actually used by
LICENSEE to record such sale on its financial statements.

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	5.8	 	Earned royalties on Sales of Licensed Products or Licensed Services occurring in any country
outside the United States shall not be reduced by any taxes, fees, or other charges imposed by
the government of such country except those taxes, fees, and charges allowed under the
provisions of Paragraph 2.9 (Net Invoice Price). LICENSEE also will be responsible for all
bank transfer charges.
	 
	5.9	 	Notwithstanding the provisions of Article 26 (FORCE MAJEURE), if at any time legal
restrictions prevent prompt remittance of any earned royalties or other consideration owed to
TomoTherapy by LICENSEE with respect to any country where a sublicense is issued or a Licensed
Product or Licensed Service is Sold, then LICENSEE will convert the amount owed to TomoTherapy
into United States dollars and will pay TomoTherapy directly from another source of funds in
order to remit the entire amount owed to TomoTherapy. Notwithstanding the previous sentence,
if LICENSEE is prohibited itself by such legal restrictions from collecting the Net Invoice
Price for the sale of any Licensed Product or Licensed Service or any royalty or fee from a
sublicense, LICENSEE shall not be obligated to convert such amount owed, but rather will send
written notice to TomoTherapy of such legal restrictions and of the amount owed. Upon removal
of such legal restrictions, LICENSEE will convert said amount owed to TomoTherapy into United
States dollars and will remit the entire amount owed to TomoTherapy.
	 
	5.10	 	No earned royalties will be collected or paid hereunder to TomoTherapy on Licensed Products
or Licensed Services Sold to the account of the U.S. Government. LICENSEE and its sublicensee
will reduce the amount charged for Licensed Products or Licensed Services Sold to the U.S.
Government by an amount equal to the royalty for such Licensed Products or Licensed Services
otherwise due TomoTherapy. LICENSEE will provide TomoTherapy with U.S. Government contract
numbers and a written statement by LICENSEE’s contracting officer that Sale of Licensed
Products to the U.S. Government were reduced by the amount of royalty due TomoTherapy.
	 
	5.11	 	If TomoTherapy must pursue legal means to obtain payments owed by LICENSEE, LICENSEE will pay
TomoTherapy for all reasonable legal costs and any other related costs expended by TomoTherapy
to collect payments owed by LICENSEE.

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	5.12	 	In the event that any patent or any claim thereof included within the Patent Rights is held
invalid in a final decision by a court of competent jurisdiction and last resort and from
which no appeal has or can be taken, all obligation to pay royalties based on such patent or
claim or any claim patentably indistinct there from will cease as of the date of such final
decision. LICENSEE will not, however, be relieved from paying any royalties that accrued
before such final decision and LICENSEE will be obligated to pay the full amount of royalties
due hereunder to the extent that TomoTherapy licenses one or more Valid Claims within the
Patent Rights to LICENSEE with respect to Licensed Products or Licensed Services.
	 
	6.	 	DUE DILIGENCE
	 
	6.1	 	LICENSEE, upon execution of this Agreement, will use all commercially reasonable efforts to
diligently proceed with the development, manufacture, and Sale of Licensed Products and
Licensed Services and use of Licensed Methods, and will use all commercially reasonable
efforts to earnestly and diligently market the same after execution of this Agreement and in
quantities sufficient to meet the market demands therefore.
	 
	6.2	 	LICENSEE will meet the specific performance obligations and milestones specified in Exhibit B
(RIGHTS GRANTED AND PERFORMANCE OBLIGATIONS), in accordance with the terms and conditions
therein (including, without limitation, the cure periods and potential modifications to such
time periods therein). If LICENSEE is unable to meet such milestones in accordance with
Exhibit B, the Parties will use all reasonable efforts to negotiate a new schedule and the
conditions for continuation of a limited exclusive sublicense, subject always to TomoTherapy’s
ability to negotiate a new schedule and conditions with LLNS under the Underlying License.

	 	6.2.1	 	If the missed milestone occurs before [ * ] the Parties will
agree on a new schedule.
	 
	 	6.2.2	 	If the missed milestone occurs on or after [ * ] and before
[ * ] and the Parties are unable to reach agreement on a new schedule,

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	 	 	 	TomoTherapy will have the right to convert the limited exclusive license for Licensed
Patents to a nonexclusive license.
	 
	 	6.2.3	 	If the missed milestone occurs on or after [ * ] TomoTherapy will
have the right and option to: (a) convert the limited exclusive license for Licensed
Patents to a nonexclusive license; or (b) terminate this Agreement per Article 10
(TERMINATION), Paragraph 10.1 (Termination by TomoTherapy), subject to the provisions
described in Article 11 (DISPOSITION OF LICENSED PRODUCTS ON HAND UPON TERMINATION).

	6.3	 	LICENSEE will comply with all applicable governmental laws and obtain all necessary
governmental approvals in each country where Licensed Products or Licensed Services are
manufactured, used, Sold, imported, or offered for Sale.
	 
	6.4	 	TomoTherapy will notify LICENSEE if TomoTherapy is approached by a third party seeking a
license to make, use, or sell the Invention or the Licensed Products in LICENSEE’s Field of
Use because commercial demand is not then being met. LICENSEE will negotiate in good faith
with that third party to grant a sublicense for any Licensed Patents in the market for which
LICENSEE and existing sublicensees are not meeting commercial demand. The determination to
grant a sublicense may be based on LICENSEE‘s business interests, and may be granted or denied
in LICENSEE’s reasonable business judgment, provided, however, that LICENSEE provides
TomoTherapy with a justification (which shall be treated as Proprietary Information) for
denying any such sublicense.
	 
	6.5	 	During the term of this Agreement, LICENSEE will conduct normal, continuous business
operations. If LICENSEE seeks protection under any United States bankruptcy proceedings during
the term of this Agreement, LICENSEE will notify TomoTherapy in writing no later than seventy-two (72) hours after the bankruptcy filing. Upon filing
bankruptcy, the license terminates at TomoTherapy’s option as stated in Article 9 (LIFE OF
THE AGREEMENT), Paragraph 9.2.

	6.6	 	To exercise either the right to terminate this Agreement or to reduce the exclusive licenses
granted to LICENSEE to nonexclusive licenses for lack of diligence required in

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	 	 	this Article 6,
TomoTherapy will give LICENSEE written notice, setting forth specific details as to the nature
of the alleged deficiency. LICENSEE thereafter has sixty (60) days to cure the deficiency. If
TomoTherapy has not received written tangible evidence satisfactory to TomoTherapy that the
deficiency has been cured by the end of the sixty- (60) day period, then TomoTherapy may, at
its option, terminate this Agreement immediately without the obligation to provide sixty (60)
days’ notice as set forth in Paragraph 10.1 or reduce the exclusive licenses granted to
LICENSEE to nonexclusive licenses by giving written notice to LICENSEE.
	 
	7.	 	ROYALTY AND PROGRESS REPORTS
	 
	7.1	 	LICENSEE will submit to TomoTherapy an annual progress report as described in Paragraph 7.2
below covering activities by LICENSEE and its sublicensees related to the development and
testing of all Licensed Products and Licensed Services. Such progress report will be signed by
LICENSEE’s General Manager or his/her designee attesting to the accuracy of the information in
the report. If LICENSEE fails to submit a timely progress report to TomoTherapy, TomoTherapy
will be entitled to terminate this Agreement in accordance with the material breach provision
set forth in Paragraph 10.1. If either party terminates this Agreement before any Licensed
Products or Licensed Services are Sold or before this Agreement’s expiration, a final progress
report covering the period prior to termination must be submitted within thirty (30) days of
termination.
	 
	7.2	 	The progress reports submitted under Paragraph 7.1 above will include, but not be limited to,
a reasonably detailed summary of the following topics:

	 	•	 	Summary of work completed toward commercialization of Licensed Patents;
	 
	 	•	 	Schedule of anticipated events or milestones, including status of those events or
milestones. Should LICENSEE wish to change the schedule of events or milestones
specified in Exhibit B (RIGHTS GRANTED AND PERFORMANCE OBLIGATIONS), LICENSEE must
request advance written approval from TomoTherapy;
	 
	 	•	 	A financial statement showing the investments made in the commercialization effort
to date;

14

 

	 	•	 	Anticipated and actual market introduction dates of each Licensed Product or
Licensed Service;
	 
	 	•	 	Summary of marketing and sales activities, including copies of marketing and sales
literature; and
	 
	 	•	 	activities of the sublicensees, if any.

	7.3	 	LICENSEE also will report to TomoTherapy in its immediately subsequent progress report the
date of first Sale or other exploitation of a Licensed Product or Licensed Service in each
country.
	 
	7.4	 	Beginning with the quarter following First Commercial Acceptance, LICENSEE will provide
quarterly royalty reports and payments to TomoTherapy on or before each February 28, May 31,
August 31, and November 30 of each year. If there were no Sale of Licensed Products or
Licensed Services, the report will state that. Royalty reports will be signed by LICENSEE’s
General Manager or chief financial officer, or their designee, attesting to the accuracy of
the report. Each such royalty report will cover the most recently completed calendar quarter
(October through December covered in the February 28th report, January through
March in the May 31st report, April through June in the August 31st
report, and July through September in the November 30th report) and will show:

	 	7.4.1	 	the gross invoice prices and Net Sales of Licensed Products or Licensed
Services Sold or otherwise exploited by LICENSEE and its sublicensees during the most
recently completed calendar quarter;

	 	7.4.2	 	the number of Licensed Products or Licensed Services Sold or otherwise
exploited by LICENSEE and its sublicensees during the most recently completed calendar
quarter;
	 
	 	7.4.3	 	the place of manufacture of Licensed Products or practice of Licensed
Services;
	 
	 	7.4.4	 	the royalties, in U.S. dollars, payable hereunder with respect to Net Sales;

15

 

	 	7.4.5	 	the method used to calculate the royalty, specifying all deductions taken and
the dollar amount of each such deduction; and
	 
	 	7.4.6	 	the exchange rates used, if any.

	7.5	 	LICENSEE will provide TomoTherapy with an annual statement of royalty accounts within sixty
(60) days after the financial closing of LICENSEE’s fiscal year. TomoTherapy will protect such
statements, and any of the other reports provided to TomoTherapy pursuant to Article 7, as
Proprietary Information and not disseminate them unless required by law or permitted by this
Agreement. If a disclosure is required by law, TomoTherapy will give LICENSEE the opportunity
to seek a protective order preventing or limiting such disclosure.
	 
	8.	 	BOOKS AND RECORDS
	 
	8.1	 	LICENSEE will keep books and records accurately showing all payments due TomoTherapy and all
Licensed Products and Licensed Services manufactured (including place of manufacture), used,
offered for Sale, imported, and/or Sold under the terms of this Agreement. Such books and
records will be preserved for at least five (5) years after the date of the payment to which
they pertain and will be open to inspection by representatives or agents of TomoTherapy at
reasonable times and upon reasonable prior notice to determine their accuracy and assess
LICENSEE’s compliance with the terms of this Agreement.
	 
	8.2	 	The fees and expenses of representatives of TomoTherapy performing such an examination will
be borne by TomoTherapy. If, however, an underpayment error in
royalties of more than five percent (5%) of the total royalties due for any year is
discovered, LICENSEE will bear the reasonable costs associated with the examination and will
remit such underpayment to TomoTherapy within thirty (30) days of the examination result.

	8.3	 	LICENSEE will provide TomoTherapy with an annual audited financial statement of LICENSEE,
including at a minimum a balance sheet and operating statement or LICENSEE’s annual report,
and TomoTherapy will treat such reports as Proprietary

16

 

	 	 	Information to the extent the same is
not part of a public filing. Such statement will be due to TomoTherapy within one hundred
twenty (120) days following the close of LICENSEE’s fiscal year to which such statement
relates.
	 
	9.	 	LIFE OF THE AGREEMENT
	 
	9.1	 	Unless otherwise terminated by operation of law, Paragraph 9.2, or by acts of the Parties in
accordance with the terms of this Agreement, this Agreement will remain in effect from the
Effective Date until the expiration or abandonment of last of the Patent Rights licensed
hereunder, at which point this Agreement will expire.
	 
	9.2	 	This Agreement will terminate at TomoTherapy’s option upon the filing of a petition for
relief under the United States Bankruptcy Code by LICENSEE. If the bankruptcy petition is
filed against LICENSEE by a third party, LICENSEE has sixty (60) days from the date of the
petition to have such third-party bankruptcy filing dismissed. If at the end of the sixty
(60) day period, LICENSEE fails to have the third party filing dismissed, this Agreement will
terminate.
	 
	9.3	 	Any termination of this Agreement will not affect the rights and obligations set forth in the
following Articles: Article 2 (DEFINITIONS), Article 5 (FEES, ROYALTIES, AND PAYMENTS),
Article 8 (BOOKS AND RECORDS), Article 9 (LIFE OF THE AGREEMENT), Article 11 (DISPOSITION OF
LICENSED PRODUCTS ON HAND UPON TERMINATION), Article 14 (USE OF NAMES AND TRADEMARKS),
Article 15 (LIMITED WARRANTY), Article 16 (INDEMNIFICATION), Article 17 (INSURANCE), Article
21 (NOTICES), Article 22 (GOVERNING LAWS; VENUE;
ATTORNEYS’ FEES), and Article 28 (PROPRIETARY INFORMATION), subject to any time limitations
set forth in those Articles. Notwithstanding anything herein to the contrary, LICENSEE
shall have no obligation to pay any amount under this Agreement unless such amount was due
and owing prior to the termination or expiration of this Agreement.

	9.4	 	The termination or expiration of this Agreement will not relieve LICENSEE of its obligation
to pay any fees, royalties, and reimbursements for foreign filing costs, or other

17

 

	 	 	payments
owed to TomoTherapy at the time of such termination or expiration and will not impair any
accrued right of TomoTherapy.
	 
	10.	 	TERMINATION
	 
	10.1	 	Termination by TomoTherapy: If LICENSEE fails to perform any material term or covenant of
this Agreement, except for failure to meet a performance obligation which is specifically
addressed in Paragraph 6.2, TomoTherapy may give written notice to LICENSEE that if LICENSEE
has not cured such failure within sixty (60) days after the effective date of receipt of the
notice, this Agreement will terminate at the end of such sixty- (60) day period or at the end
of such longer period as may be set forth in TomoTherapy’s notice.
	 
	10.2	 	Termination by LICENSEE: LICENSEE will have the right at any time to terminate this
Agreement by providing a Notice of Termination to TomoTherapy and paying any outstanding fees
owed TomoTherapy. Termination of this Agreement will be effective sixty (60) days after the
date such notice takes effect.
	 
	10.3	 	This Agreement will terminate, effective ten (10) days after the effective date of notice by
TomoTherapy, if LICENSEE is dissolved or liquidated.
	 
	11.	 	DISPOSITION OF LICENSED PRODUCTS ON HAND UPON TERMINATION
	 
	11.1	 	Upon termination of this Agreement pursuant to Article 10 (TERMINATION), LICENSEE may Sell
all previously made or partially made Licensed Products (and such partially made Licensed
Products may be completed prior to Sale), but will not make or
Sell additional Licensed Products, provided, however, that the Sale of such Licensed
Products will be subject to the terms of this Agreement including, but not limited to, the
payment of earned royalties at the rates and at the times provided herein and the rendering
of reports in connection therewith LICENSEE will also be permitted to provide Licensed
Services for so long as is reasonably necessary to complete those contractual obligations of
LICENSEE accruing prior to termination or expiration of this Agreement, provided that
LICENSEE’s providing of such Licensed Services will be subject to the terms of this
Agreement, including, but not limited to, the payment of

18

 

	 	 	earned royalties at the rates and
at the times provided herein and the rendering of reports in connection herewith.
	 
	11.2	 	Within thirty (30) days after termination of this Agreement by either Party pursuant to
Article 10 (TERMINATION), LICENSEE will provide TomoTherapy with a written inventory of all
Licensed Products in process of manufacture or in stock on the date of termination. LICENSEE
may complete Licensed Products in the process of manufacture at the time of termination, and
may dispose of Licensed Products provided that LICENSEE pays royalties to TomoTherapy on such
dispositions.
	 
	11.3	 	Upon termination of this Agreement pursuant to Article 10 (TERMINATION), LICENSEE may not
practice Licensed Methods after the date of termination of this Agreement except as necessary
to complete the manufacture of Licensed Products as permitted under Paragraph 11.2 and to
provide Licensed Services as described in Paragraph 11.1.
	 
	12.	 	PATENT PROSECUTION AND MAINTENANCE
	 
	12.1	 	Either LLNS or TomoTherapy will prosecute patent applications and maintain patents licensed
under this Agreement. LICENSEE and TomoTherapy will review and amend Exhibit A (LICENSED
PATENTS) in this License from time to time so that the amended list of Licensed Patents will
be those that both Parties believe are necessary for commercialization of Licensed Products,
subject always to agreement by LLNS and inclusion of such patents as licensed patents in the
Underlying License. The cost to file and prosecute U.S. Licensed Patents will be as follows:

	 	12.1.1	 	Category 1 Patents: LICENSEE will reimburse TomoTherapy $[ * ] for each Category 1
Patent required for commercialization in the Particle and Radiotherapy Field of Use as
set forth in this Agreement as of the Effective Date. Payment for those Category 1
Patents will be made following the successful completion and testing of the sub-scale
prototype. To the extent LICENSEE is granted either or both of the Commercial DWA or
National Security Fields of Use and additional Category 1 Patents are added as a
result, LICENSEE shall be

19

 

	 	 	 	responsible for paying for any such patents in accordance
with the terms of the Underlying License as amended.
	 
	 	12.1.2	 	Category 2 Patents: LICENSEE may be required to pay an additional fee for Category 2
Patents added to this License.
	 
	 	12.1.3	 	Category 3 Patents LICENSEE is responsible for prosecution costs of U.S. patents.

	12.2	 	As the party solely responsible for the commercialization of the Invention, LICENSEE will pay
all of the expenses associated with patent interferences, patent appeals to the USPTO Board of
Appeals, patent appeals to a Federal Court, patent re-examinations, and patent re-issues, as
long as the Licensed Patent remains on Exhibit A (LICENSED PATENTS) and LICENSEE maintains its
exclusive license.
	 
	12.3	 	LICENSEE may request foreign rights in Licensed Patents, if such rights are available.
LICENSEE must request such rights in writing, and specify the countries in which it wants
rights, within six (6) months after the filing date of the U.S. applications. Failure to
request such rights will be considered an election not to seek foreign rights. TomoTherapy or
LLNS may file patent applications at its own expense in any country in which LICENSEE has not
elected to secure foreign rights, and LICENSEE has no rights to any such foreign applications
and resultant patents, unless such foreign rights are still available and LICENSEE pays for
such rights.
	 
	12.4	 	All costs of preparing, filing, prosecuting, and maintaining foreign patent applications and
patents covering the Inventions listed in Exhibit A (LICENSED PATENTS) will be
borne by LICENSEE, subject to the terms of this Agreement. All such patents will be held in
the name of LLNS. The costs of any interferences and oppositions for foreign patents will be
considered prosecution expenses and also will be borne by LICENSEE. An advance fee (Fee)
will be invoiced to LICENSEE by TomoTherapy for any future foreign filing of Licensed
Patents listed in Exhibit A (LICENSED PATENTS). TomoTherapy is authorized to pay the
incurred fees from the Fee. As evidence of expenses incurred, TomoTherapy will supply
invoices for foreign filing requested by LICENSEE to LICENSEE. TomoTherapy shall credit to LICENSEE any remaining

20

 

	 	 	balance of the Fee not used for foreign filing expenses incurred. The
Fee is not an advance against any other fees or royalties due TomoTherapy under this
Agreement
	 
	12.5	 	The preparation, filing, and prosecution of foreign patent applications, as well as the
maintenance of the resulting patents, shall be at the expense of LICENSEE. TomoTherapy shall
invoice LICENSEE for payment of costs for foreign patent application preparation, filing,
prosecution, and maintenance. If such payment is not received within ninety (90) days, such
foreign license rights shall be excluded from this license agreement, unless such foreign
license rights are still available and LICENSEE pays for such rights. TomoTherapy shall not
be liable in any manner for the loss of such foreign license rights arising due to LICENSEE’s
failure to pay such fees on a timely manner. Any overpayments by LICENSEE for foreign patent
filing and maintenance costs shall be credited towards LICENSEE’s future foreign patent cost
obligations.
	 
	12.6	 	Notwithstanding any previous payment of fees or election to pursue such rights, LICENSEE may,
at its sole discretion, terminate its license to any foreign patent application(s) or
patent(s), and its obligation to pay any further costs for those corresponding foreign rights,
upon thirty (30) days written notice to TomoTherapy. TomoTherapy, LLNS or the U.S. Government
may, at their sole discretion and expense, continue prosecution and/or maintenance of any
patents or applications for which LICENSEE has relinquished rights.
	 
	13.	 	PATENT INFRINGEMENT
	 
	13.1	 	In the event that LICENSEE learns of infringement that it believes may have potential
commercial significance to any Licensed Patent, LICENSEE will provide TomoTherapy (i) with
written notice of such infringement and (ii) with any evidence of such infringement available
to it (the “Infringement Notice”). TomoTherapy will use reasonable efforts to abate an any
infringing activity of commercial significance to LICENSEE. Notwithstanding the foregoing, as
between TomoTherapy and LICENSEE, TomoTherapy retains the sole and exclusive right to
institute any suit of infringement against an infringer. TomoTherapy shall have the right to
terminate this Agreement immediately without the obligation to provide 60 days’ notice as set forth in

21

 

	 	 	Paragraph 10.1 if LICENSEE notifies a third party in writing of infringement, puts
such third party on notice in writing of the existence of any Patent Rights with respect to
such infringement or otherwise takes any action to enforce the Licensed Patents.
	 
	13.2	 	If TomoTherapy does institute suit for patent infringement, LICENSEE shall cooperate with
TomoTherapy. TomoTherapy shall reimburse LICENSEE for any reasonable out-of-pocket costs
incurred by LICENSEE in providing such cooperation.
	 
	13.3	 	Any recovery or settlement received in connection with any suit will belong to TomoTherapy.
	 
	14.	 	USE OF NAMES AND TRADEMARKS
	 
	 	 	Nothing contained in this Agreement will be construed as conferring any right to either
Party to use in advertising, publicity, or other promotional activities any name, trade
name, trademark, or other designation of the other Party or LLNL or LLNS (including a
contraction, abbreviation or simulation of any of the foregoing). Unless consented to in
writing by LLNL or LLNS, the use by LICENSEE of the name “Lawrence Livermore National
Laboratory” by LICENSEE in advertising, publicity, or other promotional activities
is expressly prohibited. Unless consented to in writing by TomoTherapy, the use by
LICENSEE of the name “TomoTherapy” by LICENSEE in advertising, publicity, or other
promotional activities is expressly prohibited.
	 
	15.	 	LIMITED WARRANTY
	 
	15.1	 	TomoTherapy warrants to LICENSEE that it has the lawful right to grant this sublicense.
	 
	15.2	 	Except as expressly set forth in this Agreement, the licenses and the associated Invention,
Patent Rights, Licensed Products, Licensed Services, and Licensed Methods are provided by
TomoTherapy WITHOUT WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR ANY
OTHER WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED. TOMOTHERAPY MAKES NO EXPRESS OR
IMPLIED REPRESENTATION OR WARRANTY THAT THE INVENTION, PATENT

22

 

	 	 	RIGHTS, LICENSED PRODUCTS, OR LICENSED METHODS WILL NOT INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK OR OTHER RIGHTS.
	 
	15.3	 	Nothing in this Agreement is or will be construed as:

	 	15.3.1	 	a warranty or representation by TomoTherapy as to the validity, enforceability, or
scope of any Patent Rights; or
	 
	 	15.3.2	 	a warranty or representation that anything made, used, sold, or otherwise disposed of
under any license granted in this Agreement is or will be free from infringement of
patents, copyrights, or other rights of third parties; or
	 
	 	15.3.3	 	an obligation to bring or prosecute actions or suits against third parties for patent
infringement except as provided in Article 13 (PATENT INFRINGEMENT); or
	 
	 	15.3.4	 	conferring by implication, estoppel, or otherwise any license or rights under any
patents or other rights of TomoTherapy other than Patent Rights, regardless of whether
such patents are dominant or subordinate to Patent Rights; or
	 
	 	15.3.5	 	an obligation to furnish any New Developments, know-how, technology, or technological
information not provided in Patent Rights.

	15.4	 	LIMITATION OF LIABILITY – TOMOTHERAPY, LLNL, LLNS OR DOE WILL NOT BE LIABLE FOR ANY LOST
PROFITS, COSTS OF PROCURING SUBSTITUTE GOODS OR SERVICES, LOST BUSINESS, ENHANCED DAMAGES FOR
INTELLECTUAL PROPERTY INFRINGEMENT, OR FOR ANY INDIRECT, INCIDENTAL, CONSEQUENTIAL, PUNITIVE,
OR OTHER SPECIAL DAMAGES
SUFFERED BY LICENSEE, SUBLICENSEES, JOINT VENTURES, OR AFFILIATES ARISING OUT OF OR RELATED
TO THIS AGREEMENT, FOR ALL CAUSES OF ACTION OF ANY KIND (INCLUDING TORT, CONTRACT,
NEGLIGENCE, STRICT LIABILITY AND BREACH OF WARRANTY) EVEN IF TOMOTHERAPY, LLNL, LLNS OR DOE
HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
	 
	16.	 	INDEMNIFICATION

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LICENSEE will, and will require its sublicensees to (to the extent permitted by Federal or
applicable State law without the consent of a legislative body, an elected official, or
governmental unit), indemnify, hold harmless, and defend TomoTherapy, LLNS, LLNL, DOE, their
officers, employees, and agents; the sponsors of the research that led to the Invention; and
the inventors of any invention claimed in the patent under Patent Rights (including the
Licensed Products, Licensed Services, and Licensed Methods contemplated thereunder) and
their employers against any and all amounts paid pursuant to any claims, suits, losses,
damage, costs, fees, and expenses alleging that any Licensed Product or Licensed Service
infringes the intellectual property of another party or has injured any other party.
TomoTherapy will, and will require all other parties to be indemnified pursuant to this
paragraph, immediately surrender to LICENSEE the prosecution or defense of any such claim or
suit, and LICENSEE will pay any and all costs, including reasonable attorneys’ fees,
incurred by TomoTherapy in enforcing this indemnification. This indemnification will
include, but will not be limited to, any product liability.

	17.	 	INSURANCE
	 
	17.1	 	LICENSEE will insure its activities relating to this Agreement at its own cost with an
insurance company reasonably acceptable to TomoTherapy. LICENSEE will obtain, keep in force,
and maintain insurance as follows with an insurance company reasonably acceptable to
TomoTherapy or an equivalent program of self-insurance: Comprehensive
or Commercial Form General Liability Insurance, including contractual liability and product
liability, with coverage as follows:

	 	17.1.1	 	Each occurrence coverage of not less than Five Million Dollars ($5,000,000); and
	 
	 	17.1.2	 	Product Liability Insurance: Completed operations aggregate coverage of not less
than Ten Million Dollars ($10,000,000); and
	 
	 	17.1.3	 	Personal and Advertising Injury: Coverage of not less than Five Million Dollars
($5,000,000); and

24

 

	 	17.1.4	 	General Aggregate (Commercial Form only): Coverage of not less than Ten Million
Dollars ($10,000,000).

	17.2	 	These coverages do not limit the liability of LICENSEE to TomoTherapy in any way. LICENSEE
will provide TomoTherapy, upon request, with certificates of insurance or self-insurance,
including renewals that show compliance with these requirements. LICENSEE’s failure to
maintain such required insurance will be considered a material breach of this Agreement.
	 
	17.3	 	If the required insurance is written on a claims-made form, coverage must provide a
retroactive date of placement before or coinciding with the Effective Date of this Agreement.
	 
	17.4	 	LICENSEE will maintain the general liability insurance specified in this Article 17 during
the period that the Licensed Patents of TomoTherapy are being used and/or Licensed Products
are being sold or otherwise commercially distributed by LICENSEE, and for a period of not less
than three (3) years thereafter.
	 
	17.5	 	LICENSEE’s insurance coverage must:

	 	17.5.1	 	Provide for at least thirty (30) days advance written notice to TomoTherapy of
cancellation or any modification; and
	 
	 	17.5.2	 	Indicate that DOE, LLNS, LLNL, TomoTherapy, and their respective officers, employees,
students, and agents, are endorsed on the policy as additional insureds; and
	 
	 	17.5.3	 	Include a provision that the coverage is primary and does not participate with or is
in excess of any valid and collectible insurance, program, or self-insurance carried or
maintained by TomoTherapy.

	18.	 	WAIVER
	 
	18.1	 	No provision of this Agreement is deemed waived and no breach excused unless such waiver or
consent is made in writing and signed by the waiving or consenting Party.

25

 

	18.2	 	Failure on the part of either Party to exercise or enforce any right of such Party under this
Agreement will not be a waiver by such Party of any right, or operate to bar the enforcement
or exercise of the right at any time thereafter.
	 
	19.	 	ASSIGNABILITY
	 
	19.1	 	This Agreement is binding on and inures to the benefit of TomoTherapy, its successors and
assigns, but is personal to LICENSEE. Except as provided in Paragraph 19.2, any assignment of
this Agreement for any reason including but not limited to merger or sale of majority assets
is at the sole discretion of TomoTherapy and requires prior written consent of TomoTherapy,
which will not be unreasonably withheld. Except as provided in Paragraph 19.2, should
TomoTherapy approve such assignment, LICENSEE will pay TomoTherapy an Assignment Fee as set
forth in Exhibit C (FEES AND ROYALTIES) of this Agreement
	 
	19.2	 	Notwithstanding Paragraph 19.1 above, an assignment to a wholly-owned United States
subsidiary of LICENSEE will not require the consent of TomoTherapy or the payment of an
Assignment Fee.
	 
	20.	 	LATE PAYMENTS
	 
	 	 	In the event that royalty payments, fees, or other monies owed to TomoTherapy are not
received by TomoTherapy when due, LICENSEE will pay to TomoTherapy interest at a rate of ten
percent (10%) simple interest per annum. Such interest will be calculated from the date
payment was due until actually received by TomoTherapy. Such accrual of interest will be in
addition to, and not in lieu of, enforcement of any other rights of TomoTherapy due to such
late payment. LICENSEE will pay any reasonable costs incurred by TomoTherapy in collecting
late payments.
	 
	21.	 	NOTICES
	 
	21.1	 	Any notice or payment required to be given to either Party will be deemed to have been
properly given and to be effective:

26

 

	 	21.1.1	 	on the date of delivery if delivered in person; or
	 
	 	21.1.2	 	on the date of mailing if mailed by first-class certified mail, postage paid; or
	 
	 	21.1.3	 	on the date of mailing if mailed by any global express carrier service that requires
the recipient to sign the documents demonstrating the delivery of such notice of
payment;

to the respective addresses given below, or to another address as designated in writing by
the Party changing its address.

	 	 	 
	In the case of LICENSEE:
	 	Advanced Acceleration, Inc.
	 
	 	1240 Deming Way
	 
	 	Madison, WI  53717
	 
	 	Attention:  General Manager
	 
	 	 
	In the case of TomoTherapy:
	 	TomoTherapy Incorporated
	 
	 	1240 Deming Way
	 
	 	Madison, WI 53717
	 
	 	Attention:  Chief Executive Officer

	22.	 	GOVERNING LAWS; VENUE; ATTORNEYS FEES
	 
	22.1	 	The Parties will attempt to jointly and promptly resolve any disputes arising from this
Agreement. If the Parties are unable to resolve a dispute within a reasonable time from one
Party’s written notice to the other that dispute resolution has begun, then either Party may
commence proceedings in a court of competent jurisdiction.
	 
	22.2	 	THIS AGREEMENT WILL BE INTERPRETED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
CALIFORNIA, excluding any choice of law rules that would direct the application of the laws of
another jurisdiction, but the scope and validity of any patent or patent application will be
governed by the applicable laws of the country of such patent or patent application.
	 
	23.	 	PATENT MARKING

27

 

	 	 	LICENSEE will mark all Licensed Products and their containers that are made, used, Sold, or
otherwise disposed of under this Agreement in accordance with applicable patent marking
laws.
	 
	24.	 	GOVERNMENT APPROVAL OR REGISTRATION
	 
	 	 	If this Agreement or any associated transaction is required by the law of any nation to be
either approved, permitted, or registered with any governmental agency, LICENSEE will assume
all legal obligations to do so. LICENSEE will notify TomoTherapy if LICENSEE becomes aware
that this Agreement is subject to a United States or foreign government reporting,
permitting, or approval requirement. LICENSEE will make all necessary filings and pay all
costs including fees, penalties, and all other out-of-pocket costs associated with such
reporting, permitting, or approval process, unless otherwise specified in this Agreement.
	 
	25.	 	COMPLIANCE WITH LAWS
	 
	25.1	 	LICENSEE will comply with all applicable international, national, state, regional and local
laws and regulations in performing its obligations hereunder and in its use,
manufacture, Sale, or import of the Licensed Products, Licensed Services, or practice of the
Licensed Method.
	 
	25.2	 	LICENSEE will comply with all applicable United States and foreign laws with respect to the
transfer of Licensed Products and related technical data and the provision of Licensed
Services to foreign countries, including, without limitation, the International Traffic in
Arms Regulations (ITAR) and the Export Administration Regulations (EAR).
	 
	25.3	 	LICENSEE will manufacture Licensed Products and practice the Licensed Method in compliance
with applicable government importation laws and regulations of a particular country for
Licensed Products made outside the particular country in which such Licensed Products are used
or Sold.

28

 

	25.4	 	TomoTherapy will provide reasonable assistance to LICENSEE, at LICENSEE‘s expense, in
completing any applications or seeking any approvals of the type described in this Article 25.
	 
	26.	 	FORCE MAJEURE
	 
	26.1	 	Except for LICENSEE‘s obligation to make any payments to TomoTherapy hereunder, the Parties
will not be responsible for any failure to perform due to the occurrence of any events beyond
their reasonable control which render their performance impossible or onerous, including, but
not limited to: accidents (environmental, toxic spill, etc.); acts of God; biological or
nuclear incidents; casualties; earthquakes; fires; floods; governmental acts, orders or
restrictions; inability to obtain suitable and sufficient labor, transportation, fuel and
materials; local, national, or state emergency; power failure and power outages; acts of
terrorism; strike; and war.
	 
	26.2	 	Either Party to this Agreement, however, will have the right to terminate this Agreement upon
thirty (30) days’ prior written notice if either Party is unable to fulfill its obligations
under this Agreement due to any of the causes mentioned in Paragraph 26.1, where such
identified cause has prevented the performance of its obligations for a consecutive period of
one (1) year
	 
	26.3	 	In the event that an event described in Paragraph 26.1 occurs, the Parties agree that any
time-sensitive obligations, including, without limitation, the Performance Obligations set
forth in Exhibit E and the payment of minimum annual royalties set forth in Exhibit C, shall
be tolled for a mutually agreed upon time, taking into account the nature of the occurrence,
but in no event, for a time period shorter than the duration of the event giving rise to such
tolling.
	 
	27.	 	UNITED STATES PREFERENCE
	 
	 	 	LICENSEE agrees that any Licensed Products embodying the Invention or produced through the
use thereof will be manufactured substantially in the United States.
	 
	28.	 	PROPRIETARY INFORMATION

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	 	 	Other than as specified hereunder, the terms of this Agreement shall be considered
proprietary information (“Proprietary Information”). TomoTherapy shall not disclose the
royalties paid, royalty reports, or development reports submitted by LICENSEE, or any of the
information contained in those reports, without LICENSEE‘s prior written consent, except
that TomoTherapy may disclose all such information to LLNS in accordance with its
obligations under the Underlying License. Either party may disclose the terms of this
Agreement to the extent required by law, including but not limited to any applicable
securities laws and regulations.
	 
	29.	 	MISCELLANEOUS
	 
	29.1	 	The headings of the several sections are inserted for convenience of reference only and are
not intended to affect the meaning or interpretation of this Agreement.
	 
	29.2	 	No amendment or modification of this Agreement will be valid or binding upon the Parties
unless made in writing and signed on behalf of each Party.
	 
	29.3	 	This Agreement with the attached Exhibits A, B, C, D and E embodies the entire understanding
of the Parties and supersedes all previous communications,
representations, or understandings, whether oral or written, between the Parties relating to
the subject matter hereof.
	 
	29.4	 	If any of the provisions contained in this Agreement are held to be invalid, illegal, or
unenforceable in any respect, such invalidity, illegality, or unenforceability will not affect
any other provisions hereof, and this Agreement will be construed as if such invalid or
illegal or unenforceable provisions had never been contained herein.
	 
	29.5	 	No provisions of this Agreement are intended or will be construed to confer upon or give to
any person or entity other than TomoTherapy and LICENSEE any rights, remedies, or other
benefits under, or by reason of, this Agreement.
	 
	29.6	 	In performing their respective duties under this Agreement, each of the Parties will be
operating as an independent contractor. Nothing contained herein will in any way constitute
any association, partnership, or joint venture between the Parties hereto, or be

30

 

construed to
evidence the intention of the Parties to establish any such relationship. Neither Party will
have the power to bind the other Party or incur obligations on the other Party’s behalf
without the other Party’s prior written consent.

     In witness whereof, both TomoTherapy and LICENSEE have executed this Agreement, in duplicate
originals, by their respective officers hereunto duly authorized, on the date and year hereinafter
written.

	 	 	 	 	 	 	 	 	 	 	 
	TOMOTHERAPY INCORPORATED	 	 	 	COMPACT PARTICLE ACCELERATION CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Frederick A. Robertson	 	 	 	By:	 	/s/ Shawn Guse	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 

	 	(Signature)
	 	 	 	 	 	(Signature)	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	Frederick A. Robertson	 	 	 	Name:	 	Shawn Guse	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	CEO	 	 	 	Title:	 	General Manager	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date signed: April 25, 2008	 	 	 	Date signed: April 25, 2008	 	 

31

 

EXHIBIT A — LICENSED PATENTS

CATEGORY 1 PATENTS

UNITED STATES PATENTS:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Invention	 	 	 	 	 	 	 	 	 	 
	Disclosure	 	Patent	 	 	 	 	 	Filing	 	Issue
	Number	 	Number	 	Title	 	Inventors	 	Date	 	Date
	IL-9938

	 	 	6,331,194	 	 	Process for Manufacturing Hollow Fused-Silica Insulator Cylinder
	 	Stephen E.
Sampayan, Michael
L. Krogh, Steven C.
Davis
	 	07/08/97
	 	12/18/01
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	IL-10368

	 	 	7,173,385	 	 	Compact Accelerator
	 	George J. Caporaso,
Stephen E.
Sampayan, Hugh C.
Kirbie
	 	01/14/05
	 	02/06/07

UNITED STATES PATENT APPLICATIONS:

	 	 	 	 	 	 	 	 	 
	Invention	 	Patent	 	 	 	 	 	 
	Disclosure	 	Application	 	 	 	 	 	 
	Number	 	Number	 	Title	 	Inventors	 	Filing Date
	IL-11372

	 	11/586,377
	 	Single Pulse Traveling Wave Accelerator
	 	George J. Caporaso,
Scott D. Nelson
	 	10/24/06
	 
	 	 	 	 	 	 	 	 
	IL-11425

	 	11/450,429
	 	Bi-polar Pulse Forming Line
	 	Mark A. Rhodes
	 	06/09/06
	 
	 	 	 	 	 	 	 	 
	IL-11482

	 	11/586,468
	 	Method of Controlling the
Spatial Distribution of
Large Electric Fields at
Conductor Insulator
Junctions
	 	James Sullivan,
George Caporaso,
Stephen Sampayan,
David M. Sanders
	 	10/24/06
	 
	 	 	 	 	 	 	 	 
	IL-11514

	 	11/599,797
	 	Castable Dielectric Wall Accelerator
	 	David M. Sanders,
Stephen Sampayan
Non-LLNL: H.M.
Stoller, Kirk
Slenes
	 	11/14/06
	 
	 	 	 	 	 	 	 	 
	[ * ]

	 	[ * ]
	 	[ * ]
	 	[ * ]
	 	[ * ]

PROVISIONAL PATENT APPLICATIONS:

[ * ]

32

 

FOREIGN PATENT APPLICATIONS:

	 	 	 	 	 	 	 	 	 
	Invention	 	 	 	 	 	 	 	 
	Disclosure	 	International	 	 	 	 	 	 
	Number	 	Serial Number	 	Title	 	Inventors	 	Filing Date
	IL-10368

	 	PCT/US05/01548
	 	Improved Compact Accelerator
	 	George J. Caporaso,
Stephen E.
Sampayan, Hugh C.
Kirbie
	 	01/18/05
	 
	 	 	 	 	 	 	 	 
	IL-10368

	 	05722455.2 EP
	 	Improved Compact Accelerator
	 	George J. Caporaso,
Stephen E.
Sampayan, Hugh C.
Kirbie
	 	01/18/05
	 
	 	 	 	 	 	 	 	 
	IL-10368

	 	2006-549689 JP
	 	Improved Compact Accelerator
	 	George J. Caporaso,
Stephen E.
Sampayan, Hugh C.
Kirbie
	 	01/18/05
	 
	 	 	 	 	 	 	 	 
	IL-10368

	 	2550552 CA
	 	Improved Compact Accelerator
	 	George J. Caporaso,
Stephen E.
Sampayan, Hugh C.
Kirbie
	 	01/18/05
	 
	 	 	 	 	 	 	 	 
	IL-11372

	 	PCT/US06/41548
	 	Sequentially Pulsed Traveling Wave Accelerator
	 	George J. Caporaso, 

Scott D. Nelson
	 	10/24/06
	 
	 	 	 	 	 	 	 	 
	IL-11482

	 	PCT/US06/41814
	 	Optically-Initiated Silicon Carbide
High Voltage Switch
	 	James Sullivan,

George Caporaso,

Stephen Sampayan,

David Sanders
	 	10/24/06
	 
	 	 	 	 	 	 	 	 
	IL-11514

	 	PCT/US06/44297
	 	Castable Dielectric Wall Accelerator
	 	David M. Sanders
	 	11/14/06
	 
	 	 	 	 	 	 	 	 
	IL-11585

	 	PCT/US07/21380
	 	Compact Accelerator for Medical Therapy
	 	George J. Caporaso,

Stephen E.
Sampayan,

Yu-Jiuan
Chen,

 Steven A.
Hawkins,

 Arthur
Carl Paul
	 	10/05/07
	 
	 	 	 	 	 	 	 	 
	IL-11585

	 	96139662 TW
	 	Compact Accelerator for Medical Therapy
	 	George J. Caporaso, 

Stephen E. Sampayan,

 Yu-Jiuan Chen,

 Steven A.
Hawkins,

 Arthur
Carl Paul
	 	10/05/07

The following Records of Inventions (ROIs) are to be included as Category 1 Patents upon filing of
the associated patent application with the USPTO.

INVENTION DISCLOSURES

[ * ]

CATEGORY 2 PATENTS

NONE CURRENTLY

33

 

CATEGORY 3 PATENTS

NONE CURRENTLY

34

 

EXHIBIT B — RIGHTS GRANTED AND PERFORMANCE OBLIGATIONS

	 	 	 
	B.1

	 	Rights Granted
	 
	 	 
	B.1.1

	 	Subject to the limitations set forth in this Agreement, TomoTherapy
hereby grants to LICENSEE an exclusive, nontransferable (other than
in accordance with the terms and conditions contained herein),
royalty-bearing, license under Patent Rights (a) to make, use, Sell,
offer for Sale, and import or export, subject to compliance with
Article 25, Licensed Products and Licensed Services in the Current
Field of Use; and (b) to practice Licensed Methods in the Current
Field of Use.
	 
	 	 
	B.1.2

	 	“Current Field of Use” means Particle and Radiotherapy.

	 	B.1.2.1	 	 To maintain exclusivity in the Current Field of Use, LICENSEE will have to submit a
commercialization plan for each particle therapy application (e.g., carbon-12, heavy
ion particle, etc.) even if the plan simply involves sublicensing. The first
of these commercialization plans beyond proton therapy will be required [ * ] years
after First Commercial Acceptance. If LICENSEE fails to submit a commercialization
plan for any particle therapy application within the required [ * ] years after First
Commercial Acceptance, the Current Field of Use would be reduced to Proton and
Radiotherapy.
	 
	 	B.1.2.2	 	 LICENSEE shall have an option to negotiate to expand the Current Field of Use to
include the Commercial DWA Field of Use, provided that LICENSEE submits a separate or
supplemental commercialization plan for this broader field within three years of the
Effective Date of this Agreement.
	 
	 	B.1.2.3	 	 LICENSEE shall have an option to negotiate to expand the Current Field of Use to
include the National Defense DWA Field of Use, provided that LICENSEE submits a
separate or supplemental commercialization plan for this field of use within three
years of the Effective Date of this Agreement.
	 
	 	B.1.2.4	 	 All fields of use set forth in B.1.2.1 through B.1.2.3 above will be exclusive as
long as LICENSEE submits an acceptable commercialization plan for that field

35

 

in a timely manner, meets all Performance Obligations and otherwise complies with
the terms and conditions of this Agreement, subject always to LLNS granting such
rights first to TomoTherapy through the Underlying License and the terms and
conditions set out from time to time in the Underlying License. Notwithstanding
the foregoing, any grant of an exclusive sublicense for the National Defense DWA
Field of Use shall be exclusive only until [ * ] or [ * ] years after Commercial
Acceptance of a Licensed Product in that field, whichever occurs first.

			
	B.2	 	Sublicensing Rights

TomoTherapy also grants to LICENSEE the right to issue sublicenses of the rights granted to
it in Paragraph B.1. above to Affiliates, Joint Ventures, and third parties (“sublicensees”)
in the relevant fields of use, having rights no greater than those granted to LICENSEE by
TomoTherapy and to TomoTherapy by LLNS, provided that, at the time of sublicensing, LICENSEE
retains exclusive rights in the relevant Field of Use for the Licensed Patents, Licensed
Services, or Licensed Methods that are the subject of such sublicense. For the avoidance of
doubt, Affiliates and Joint Ventures shall have no licenses under the Patent Rights unless
such Affiliates and Joint Ventures are granted a sublicense.

B. 3 Rights Excluded

Rights that are not specifically granted elsewhere in this Agreement are specifically
excluded from the License.

	B.4	 	 Future Rights

	B.4.1	 	 LICENSEE may make a written request to TomoTherapy to add some Category 2 Patents to this License,
and TomoTherapy agrees to amend Exhibit A of this License accordingly provided that LICENSEE pays
any additional fees if required, as provided in Paragraph 12.1.2 of this Agreement, and provided
further that LLNS agrees to amend the Underlying License accordingly.

36

 

	B.4.2	 	 LICENSEE may make a written request to TomoTherapy to add Category 3 Patents to this Agreement for
no additional license fees, and TomoTherapy agrees to amend Exhibit A of this Sublicense
accordingly, provided that LICENSEE pays patenting costs in accordance with Article 12 of this
License, and provided further that LLNS agrees to amend the Underlying License accordingly. To
the extent that copyrightable material maybe needed to successfully commercialize the Invention,
such copyrights will be included in Exhibit A.
	 
	B.4.3	 	 At the conclusion of the CRADA, either through termination or six (6) months after completion,
LICENSEE will have the opportunity to review all inventions generated during the course of the
CRADA, to decide which inventions are needed to commercialize the Invention, and to seek amendment
to Exhibit A to include such inventions, at which time all the future rights identified in this
Section B.4 would have been listed in Exhibit A, subject to LLNS’ agreement to amend the
Underlying License accordingly Other Future Rights beyond those discussed herein must be
negotiated in a separate Agreement.

	B.5	 	 Performance Obligations

	B.5.1	 	 LICENSEE will develop with TomoTherapy by the completion of the DWA subscale prototype, and in
consultation with LLNS, a more detailed schedule (Exhibit D “SCHEDULE”) that provides dates for
each of the following obligations. To maintain exclusivity, specific dates must be mutually
agreed to by TomoTherapy and LICENSEE and LLNS by the later of [ * ] or that date when
the DWA subscale prototype is completed (“DWA Subscale Completion”). This Agreement must be
amended with the SCHEDULE within sixty (60) days of the DWA Subscale Completion. It is expected
that the SCHEDULE will be updated at least once annually using a form provided in the SCHEDULE
during the course of the CRADA as new information is developed. Both parties signing the updated
SCHEDULE form will be considered an amendment to the SCHEDULE.

	 	B.5.1.1	 	 A [ * ] milestone that is related to the full-scale development of the DWA

37

 

	 	B.5.1.2	 	 The estimated time after the successful testing of the full-scale DWA when the first
therapy system incorporating the DWA will be installed at a location to be determined
by the Parties.
	 
	 	B.5.1.3	 	 The date when LICENSEE will submit the required Federal Drug Administration (“FDA”)
notification/application
	 
	 	B.5.1.4	 	 The date when LICENSEE will achieve First Commercial Acceptance, estimated to be one
year after FDA approval
	 	B.5.1.5	 	 A mutually-agreed process to jointly amend the SCHEDULE

	 
	 	B.5.2	 	 LICENSEE will hire or contract with the people it believes to be reasonably
necessary to commercialize the
DWA technology within [ * ] days of the DWA Subscale Completion.
	 
	 	B.5.3	 	 LICENSEE will negotiate in good faith with TomoTherapy, and in consultation with LLNS, to locate the first
prototype system at a facility.
	 
	 	B.5.4 	 	LICENSEE will achieve cumulative commercial acceptances of [ * ] units of proton therapy systems three
years after First Commercial Acceptance, subject to Paragraph 5.6 below.
	 
	 	B.5.5	 	 Other performance obligations for applications beyond proton therapy based on LICENSEE‘s commercialization
plan pursuant to Paragraphs B.1.2.1.
	 
	 	B.5.6	 	 The sales requirements specified above may, by mutual written consent of LICENSEE and TomoTherapy, be
amended and/or extended at the written request of LICENSEE to TomoTherapy, based upon legitimate business
reasons specified in reasonable detail in such written request, subject to agreement with LLNS.
TomoTherapy shall not unreasonably withhold, condition, or delay their consent to an amendment or
extension provided that LICENSEE can provide a good business reason for the delay. Any delay beyond the
reasonable control of LICENSEE will be deemed reasonable cause for amendment or extension of a Performance
Obligation. Any delay resulting in an extension of the First Commercial Acceptance shall be accompanied
by a corresponding extension of payments required of LICENSEE, including payments for milestones, earned royalties, and minimum royalties.

38

 

	B.5.7 	 	Pursuant to Paragraph 7.1, the first progress report will be due on February 28, 2009.
	 
	B.5.8	 	 LICENSEE will proceed commercially diligently to develop, file relevant regulatory applications for and
attempt to obtain relevant regulatory commercialization approvals with respect to the manufacturing,
marketing, and sale of Licensed Products.
	 
	B.5.9	 	 LICENSEE will submit a commercialization plan for applications beyond proton therapy, as provided in
Paragraphs B.1.2.1 through B.1.2.3.

39

 

EXHIBIT C — FEES AND ROYALTIES

	C.	 	1 Milestone Payments

	C.1.1	 	 As partial consideration for this Agreement, LICENSEE will pay
Milestone Payments for the Particle and Radiotherapy Field of Use
based on the following schedule of events:

	 	C.1.1.1	 	 [ * ] within thirty (30) days of the date on which the parties and LLNS all agree
they have completed a working sub-scale prototype of the DWA.
	 
	 	C.1.1.2	 	 [ * ] within thirty (30) days of the date on which the parties and LLNS all agree
they have completed a working SiC or comparable switching prototype (which may be
completed with the sub-scale prototype).
	 
	 	C.1.1.3	 	 [ * ] within thirty (30) days of the date on which the parties and LLNS all agree
they have completed a working full-scale prototype of the DWA.

	C.1.2	 	 As partial consideration for this Agreement, LICENSEE will pay Milestone Payments for other
Fields of Use in amounts and at times to be agreed to by parties when those additional Fields
of Use are granted, except that, at a minimum, in order to receive rights to the National
Security DWA Field of Use, LICENSEE agrees to grant LLNS common stock in LICENSEE at a fair
market value at the time of the grant of $ [ * ], such grant to be made within thirty (30)
days of the date on which the parties mutually agree they have completed a working full-scale
prototype of a DWA for national security applications.

	C.1.3. 	 	The Milestone Payments will not be credited against any other royalty or fee due from
LICENSEE to TomoTherapy.

C.2 Earned Royalties

	C.2.1	 	 Earned Royalties on Licensed Products. In addition to the Milestone Payments, LICENSEE will
pay TomoTherapy an earned royalty of [ * ]% on Net Sales of Licensed Products in the Particle
and Radiotherapy Field of Use (or the Medical Field of Use should the Current Field of Use be
expanded as set forth in Article B.1.2.2. above). LICENSEE will pay TomoTherapy an earned
royalty of [ * ]% on Net Sales of Licensed

40

 

Products in all other Fields of Use. Payments of earned royalties will be in accordance
with the requirements of Article 5 (FEES, ROYALTIES AND PAYMENTS) and Article 7 (PROGRESS
AND ROYALTY REPORTS) of this Agreement.

	C.2.2 	 	Earned Royalties on Licensed Services. In addition to the Milestone Payments, LICENSEE will
pay TomoTherapy an earned royalty of [ * ]% on Net Sales of Licensed Services in the Particle
and Radiotherapy Field of Use (or the Medical Field of Use should the Current Field of Use be
expanded as set forth in Article B.1.2.2. above). LICENSEE will pay TomoTherapy an earned
royalty of [ * ]% on Net Sales of Licensed Services in all other Fields of Use. Payments of
earned royalties will be in accordance with the requirements of Article 5 (FEES, ROYALTIES AND
PAYMENTS) and Article 7 (PROGRESS AND ROYALTY REPORTS) of this Agreement.

	C.2.3	 	 In the event that LICENSEE grants sublicenses, LICENSEE will pay to TomoTherapy earned
royalties from such sublicensing in accordance with the terms and conditions in this
Agreement.

	C.3	 	 Minimum Annual Royalties for Particle and Radiotherapy Field of Use

	C.3.1 	 	Subject to the terms and conditions of this Agreement, LICENSEE will pay to TomoTherapy a
minimum annual royalty for the Particle and Radiotherapy Field of Use according to the
requirements of Article 5 and the schedule below. The minimum annual royalty paid to
TomoTherapy during a calendar year will be credited against the earned royalty due and owing
for the calendar year in which the minimum payment was made.

	 	 	 	 	 
	Calendar year	 	Minimum annual royalty	 	Due date
	2009

	 	$[ * ]
	 	February 28, 2009
	2010

	 	$[ * ]
	 	February 28, 2010
	2011

	 	$[ * ]
	 	February 28, 2011
	2012

[ * ]

	 	$[ * ]
	 	February 28, 2012
	2013

	 	$[ * ]
	 	February 28, 2013
	2014

	 	$[ * ]
	 	February 28, 2014
	2015

	 	$[ * ]
	 	February 28, 2015
	2016

	 	$[ * ]
	 	February 28, 2016
	2017

	 	$[ * ]
	 	February 28, 2017 and every
February 28 thereafter for the
life of this Agreement

41

 

	C.3.2	 	 The dates for First Commercial Acceptance and beyond, and the corresponding minimum annual
royalties starting with $[ * ], may be modified pursuant to Exhibit E (SCHEDULE). If the
First Commercial Acceptance is modified to a later year, then the minimum annual royalty for
the original year that had the First Commercial Acceptance would be $[ * ] more than that of
the year immediately preceding the original year that had the First Commercial Acceptance.
For example, if the First Commercial Acceptance has been modified to 2013, then the $[ * ]
minimum annual royalty would start in 2013, and 2012 will have a minimum annual royalty of $[
* ] ($[ * ] more than the 2011 minimum annual royalty).

	C.4	 	 Minimum Annual Royalties for Other Fields of Use

Subject to the terms and conditions of this Agreement, LICENSEE will
pay to TomoTherapy a minimum annual royalty for other fields of use
according to a schedule to be agreed to by the Parties at the time of
the grant of one or more of those fields of use.

	C.5	 	 Assignment Fee

Except as provided in Paragraph 19.2, LICENSEE will pay TomoTherapy an Assignment Fee of $ [
* ] as per Article 19 (ASSIGNABILITY) prior to such assignment being approved by
TomoTherapy.

42

 

EXHIBIT D — SCHEDULE

Pursuant to Paragraph B.5.1 of Exhibit B (RIGHTS GRANTED AND PERFORMANCE OBLIGATIONS), LICENSEE
will develop with TomoTherapy by DWA Subscale completion a more detailed schedule (“SCHEDULE”) that
provides for the following, each of which shall be a Performance Obligation and each of which is
also subject to agreement by LLNS per the Underlying License.

	D.1 Milestones	 

	 	 	 	 	 
	Reference	 	Milestone	 	Date
	    B.5.1.1

	 	A [ * ] milestone related to DWA full-scale development	 	[ * ]
	 
	 	 	 	 
	B.5.1.2

	 	Installation of the first therapy system
incorporating the DWA at the location to be
determined by both Parties
	 	[ * ]
	 
	 	 	 	 
	B.5.1.3

	 	Submission of required FDA notification/application
	 	[ * ]
	 
	 	 	 	 
	B.5.1.4

	 	First Commercial Acceptance
	 	[ * ]

	D.2	 	 Amendment Process (Reference B.5.1.5)
	 
	D.2.1	 	 Periodic reviews of the development of both the DWA and the proton
therapy system will be conducted by Parties and LLNS.
	 
	D.2.2	 	 The Parties and LLNS will review and update this schedule during the
course of the CRADA at least once annually by September 30 and amend
this Agreement accordingly.
	 
	D.2.3	 	 By the termination or completion of the CRADA, dates must be
furnished, mutually agreed to by the Parties and LLNS, and entered
into this License Schedule.

43EX-10.1 LETTER AGREEMENT

 

Exhibit 10.1

April 28, 2008

Phoebe A. Wood

1045 Alta Vista Road

Louisville, KY 40205

Dear Phoebe:

I am delighted that you have agreed to cooperate after your retirement in the transition of the
Chief Financial Officer role and functions at Brown-Forman Corporation (“Company”). This Letter of
Cooperation (“Agreement”) confirms our understandings about the transition.

     1. Effective April 30, 2008, your employment with the Company will end. The term of this
Agreement will be from May 1, 2008 (or such later effective date as referenced in Section 5 below)
through April 30, 2009.

     2. During the term of this Agreement, you agree to be available at reasonable times and places
to consult with the Company concerning Finance Department and Company financial matters and
transition issues including without limitation: financial and capital management policies and
practices; financial reporting, Sarbanes-Oxley compliance and certification and certification
related matters for periods through April 30, 2008; banking, borrowing, hedging and other financing
and financial transactions; transitioning financial analyst, investment banking and other
stakeholder relationships; other transition issues with the Audit Committee, Treasury, Corporate
Development and special projects; and such other matters as the Company may reasonably request.
These arrangements, and the specific topics of consultation, will be conducted by and through Don
Berg, who will serve as your contact person at the Company. We agree that this transition
cooperation will consume on average no more than 20% of a normal work week and acknowledge that the
cooperation may at times need to occur via telephone and electronic means and at night or on
weekends so as not to unreasonably interfere with your ability to fulfill other business
obligations you might have or hereafter assume. You agree to exercise reasonable diligence and
best efforts in providing these services, all in compliance with the Company’s core values, Code of
Conduct and the other management policies with which you are familiar. In providing these
services, you will be acting as an independent contractor and nothing herein shall be construed to
create or continue an employment relationship between you and the Company after April 30, 2008.

     3. You agree effective immediately and for the term of this Agreement not to accept employment
or serve as a Board member of, or consultant to, or to have any other advisory relationship with,
(other than as an owner of less than 1% of its stock or as a consumer of its

 

 

Phoebe A. Wood

April 28, 2008

Page 2

products), any Supplier of wine or spirits (that term being broadly defined as any producer,
manufacturer, brand owner, or primary brand marketer) or importer of wine or spirits, either in the
U.S. or globally.

     4. In exchange for the promises, benefits and commitments set forth in this Agreement, you
agree to the following additional understandings, which understandings shall survive and continue
in full force and effect after the termination of this Agreement:

     (a) You will not, directly or indirectly, individually or with others take any action or make
any statement or issue any communication that has the intent or reasonably foreseeable effect of
disparaging, undermining or negatively reflecting on (i) the Company or its Directors or Officers,
individually or as a group; (ii) other employees (not Directors or Officers) of Brown-Forman,
subject to an exception for statements of fact or opinion about such employees that do not relate
to, and are not informed by, contact with that person at Brown-Forman), individually or as a group
and except for references for future jobs that are requested by such employees if they are at that
time former Brown-Forman employees; (iii) any of the Company’s products, assets, businesses,
reporting practices, accounting or financial practices, relations with customers, vendors or
consumers; or, the Company’s other stakeholders except for statements of fact or opinion about such
stakeholder that do not relate to, and are not informed by, contact with that stakeholder at
Brown-Forman; provided, however, that nothing in this or the following subsection will limit the
statements you can make or actions you can take at the request of or with the approval of Don Berg
during the term of this Agreement, prevent you from providing truthful answers, under oath, in
response to a subpoena from any judicial or governmental authority, discussing any person or the
Company generally with your own legal counsel in a context that you reasonably expect that attorney
to maintain confidentiality under the attorney-client privilege; nor shall this subsection require
you to personally consume the Company’s brands or affirmatively take actions to enhance or support
the Company or other stakeholders, except as may be reasonably requested in connection with your
consultation duties hereunder.

     (b)(i) You acknowledge and reaffirm an ongoing obligation not to divulge or disclose to any
other person or entity any trade secrets or other non-public or confidential information that
relates to the Company, its businesses, business prospects, finances, accounting, products,
trademarks, shareholders, vendors, customers, or consumers. These trade secrets and/or
non-public or confidential information include but are not limited to product, manufacturing,
marketing, sales, customer, consumer, financial, cost, pricing, strategic planning, Board of
Director and its Committee activities, the shareholders and their holdings and relationships with
the Company, legal and/or regulatory information, information identifying customers and the terms
of their agreements or dealings with the Company, and all other non-public or confidential
information that you obtained during the course of your employment with the Company.

     (b)(ii) You acknowledge and agree that you will not, directly or indirectly, enter into any
discussions, negotiations, arrangements or understandings with, or assist, advise, encourage, or
otherwise participate overtly or covertly with any party (including but not limited to a future
employer) in any attempt to take-over the Company, the term “take-over” being defined in the
broadest possible extent to include without limitation the acquisition of Class A Common Stock or
other securities of the Company, any proxy solicitation involving the Company, the acquisition of a
material portion of the Company’s assets, any attempt to elect Directors to the

 

 

Phoebe A. Wood

April 28, 2008

Page 3

Company’s Board of Directors who have not been nominated by the Board, advocating the
Company’s restructuring, merger or involvement in another business combination, or gaining any
voting interest in the Company; provided, however, that, nothing in this subsection will prevent
you from personally or for your family or heirs, acquiring or selling Class A Common Stock or other
securities of the Company in amounts not to exceed 1% of any class thereof.

     5. This Agreement is conditioned on you signing and not revoking the Release attached as
Exhibit A. This Agreement becomes effective on the later of (i) May 1, 2008, or (ii) the eighth
calendar day following your executing, and not thereafter validly revoking, the Release .

     6. The Company agrees and understands that it has certain ongoing obligations to you, whether
or not you enter into this Agreement and the attached Release, and that these obligations will not
be affected or superseded by this Agreement and attached Release. These obligations are:

     (a) You will continue to be entitled to reimbursement of business expenses incurred prior to
April 30, 2008, upon presentation of proper documentation thereof and application for reimbursement
in accordance with current Company policy. The Company will remit the amounts to be reimbursed
under this paragraph as soon as practicable thereafter.

     (b) Except as the restricted stock awards are amended as provided in Section 7(iv), your
rights and responsibilities with respect to Company benefit plans are as provided by applicable
law, plan provisions including grant and awards documents, and the Company’s administrative
guidelines, policies and practices, without regard to whether or not you accept this Agreement.
So, for example, whatever rights you have to continue or convert benefit plans, exercise stock
options or stock appreciation rights, vest in and have restrictions released under any restricted
Company stock previously granted, and to 401(k), retirement plan and SERP benefits are not affected
by this Agreement.

     (c) You retain and are not releasing any rights which you may have under the existing or
then-current indemnification provision in the Company’s Articles, Bylaws or any employee benefit
plan with which you worked at the Company’s request, or any such provisions applying to employees
generally, for any actions or claims against you arising out of your tenure as an officer and
employee of the Company or any of its subsidiaries or affiliates.

     (d) At the next regular payroll date of the Company following April 30, 2008, the Company will
pay to you all unpaid wages earned through that date, together with any accrued, unused vacation
pay then due, less applicable withholdings for payroll taxes, insurance co-payments and other
customary payroll deductions.

     (e) At the same time and in the same manner as paid to other, active employee participants in
the Company’s 2004 Omnibus Compensation Plan, but in no case later than September 30, 2008, you
shall be paid in cash the short and long-term annual incentives determined due for all performance
periods ending on or before April 30, 2008. Likewise, the Company will pay to you in cash (net of
any required tax withholdings) at the same time in 2009 and 2010 and computed in the same manner
that amounts are payable to persons then still

 

 

Phoebe A. Wood

April 28, 2008

Page 4

employed by the Company, the elected cash portion of the long term incentive award due you
based upon actual Company performance, as compared with your previously established target bonuses,
for the performance periods spanning May 1, 2006-April 30, 2009 and May 1, 2007-April 30, 2010.

     (f) The Company acknowledges and agrees that, by virtue of your retirement occurring after
your attainment of age 55 and 5 years of service, all outstanding stock options and stock-settled
stock appreciation rights (“Options” and “SSARs”) awarded to you and not yet exercised (a list of
which is attached hereto as Exhibit B) shall be exercisable from and after the first exercise date
thereunder until the earlier of (1) the specific Option or SSAR Expiration Date, or (2) April 30,
2015.

     7. In consideration of your undertakings in Sections 2, 3, 4 and 5 above, the Company will:
(i) upon this Agreement becoming effective, pay you a lump sum of $25,000; (ii) pay you $50,000 in
each of the 12 months from May 2008 through April 2009; (iii) through April 30, 2009, waive the
collection of the portion of your COBRA-continued health insurance coverage cost equal to any cost
in excess of the amount similarly situated active employees pay toward their similar health
coverage, with the portion payable by you being debited from your payments under (ii) above; and
(iv) compute the pro-rata portion of your restricted stock awards which vest April 30, 2008 (a list
of which is attached hereto as Exhibit C), by virtue of your employment ending then as if your
employment continued through April 30, 2009. In addition, reasonable expenses incurred in
providing consulting services will be reimbursed in accordance with the Company’s expense
reimbursement policies applicable to its executives generally. All cash payments required by (i)
and (ii) above will be deposited directly to your checking account. You will be solely responsible
for the payment of any income or other taxes due on these amounts.

     8. (a) The Company may at any time in its sole discretion terminate this Agreement prior to
April 30, 2009. (i) If the termination is “for cause” — as defined in the Company’s 2004 Omnibus
Compensation Plan — it shall owe you nothing further. (ii) If, on the other hand, the
termination is “not for cause” — that is, for any reason not set out in (i) above, or for no
reason — then the Company must continue to pay you the balance of the amounts contemplated by
Section 7 above, as and when otherwise payable. (b) You may terminate this Agreement by written
notice to the Company’s Deputy General Counsel at any time prior to April 30, 2009, in your sole
discretion, and if you do so, all further payments due under this agreement will cease and no
further payments under this Agreement will be owed to you. Your death or disability prior to the
expiration of the term of this Agreement will not constitute a termination by you, or a “for cause”
termination by the Company, and all payments or amounts due thereafter to be paid hereunder shall
be paid to your personal representative. (c) If neither party terminates this Agreement, it will
end April 30, 2009. (d) Regardless of the date or reason that this Agreement terminates, you
shall remain bound by the covenants in Section 4 above after termination of the Agreement.

     9. This Agreement shall be governed by the laws of the Commonwealth of Kentucky and disputes
concerning its terms shall be decided in the Jefferson County, Kentucky, circuit court; except that
the Company may seek enforcement of any of the covenants contained herein in any jurisdiction where
it is necessary in its judgment to do so.

 

 

Phoebe A. Wood

April 28, 2008

Page 5

     10. This Agreement and the attached Release constitute the entire agreement between you and
the Company and supersede and extinguish any and all other agreements, understandings and
contractual commitments that do or may exist in respect of the matters covered herein. Amendments
or modifications of this Agreement or its Exhibits will have no effect unless they are reduced to
writing and signed by the parties. Whenever possible, each provision and term of this Agreement
will be interpreted in a manner to be effective and valid, but if any provision or term of this
Agreement is held to be prohibited or invalid, then such provision or term will be ineffective only
to the extent of such prohibition or invalidity, without invalidating or affecting in any manner
whatsoever the remainder of such provision or term or the remaining provisions or terms of this
Agreement. If any of the covenants set forth in this Agreement are held to be unreasonable,
arbitrary or against public policy, such covenants will be considered divisible with respect to
scope, time and geographic area, and in such lesser scope, time and geographic area, will be
effective, binding and enforceable against you to the greatest extent permissible.

It is understood and agreed that no release, waiver, or other promise set forth in this Agreement
shall be construed to prohibit either the Company or you from enforcing the terms of this Agreement
or the benefits and rights preserved by this Agreement and its related Release, in a court of
competent jurisdiction.

My signature on this letter reflects the agreement on behalf of the Company to the terms outlined
in this letter and the attachments. To confirm your agreement and voluntary acceptance of these
terms, please execute this letter in the space set forth below, date your signature, and execute
and date the attached Release.

Very truly yours,

BROWN-FORMAN CORPORATION

	 	 	 
	By:	/s/ James S. Welch 	 

	 	 	 

	 

AGREEMENT AND ACCEPTANCE

I agree to the arrangements, benefits and understandings set forth

in this letter and the attached Release.

	 	 	 
	/s/ Phoebe A. Wood	 	 

	 	 	 

	Phoebe A. Wood	 	 

	 
	April 28, 2008	 	 

	 	 	 

	Date	 	 

 

 

EXHIBIT A

RELEASE

1. GENERAL

     (a) PURPOSE. I am retiring from my employment with Brown-Forman Corporation effective April
30, 2008. I understand that even if I do not sign this Release and Agreement, I am entitled to
certain benefits as described in Section 6 of the letter agreement to which this Release is
attached. I further understand that Additional Benefits that the Company has no legal obligation
to provide, as described in Section 7 of the letter agreement to which this Release is attached,
including a consulting relationship, are being offered to me as consideration in part for my
signing and fully complying with this Release and the letter agreement to which this Release is
attached (the “Agreement”).

     (b) ENCOURAGEMENT TO CONSULT WITH ATTORNEY. I acknowledge that this Release and the
Agreement are binding legal documents and that the Company advises me to consult with an attorney
before signing this Release and the Agreement.

     (c) REVIEW AND CONSIDERATION PERIOD. I acknowledge that I hereby am being given at least 21
calendar days to review and consider this Release and Agreement and have had the opportunity to use
as much of that time as I wish before signing it.

I wish to accept the role described in the Agreement with its compensation and benefits and in
exchange agree as follows:

2. RELEASE

I agree to release Brown-Forman Corporation and all of its divisions, subsidiaries, affiliates,
employees, officers, directors, and its and their successors and assigns (hereinafter referred to
as the “Company”) from all claims, liabilities, demands and causes of action which I may have or
claim to have against any one or more of them arising to and including the date and time I have
executed this Agreement and Release.

     (a) I agree the released claims, liabilities, demands and causes of action include but are
not limited to all claims, liabilities, demands and causes of action that involve or relate in any
way to (i) my employment with the Company through April 30, 2008; and (ii) the cessation of my
employment with the Company effective April 30, 2008, except for those rights and obligations
preserved or created by the Agreement.

     (b) This release includes but is not limited to all claims that I may have for discrimination
on the basis of religion, national origin, race, sex, disability, religion, age (including all
claims under the Age Discrimination in Employment Act of 1967 as amended), and all other protected
classifications under any other federal, state or local laws or regulations, except as noted in
subparagraph (f) below. I also release any and all common law and statutory claims, including but
not limited to, contract, tort or wrongful discharge claims to the fullest extent allowed by law.

1

 

     (c) I also waive and release to the maximum extent allowed by law all monetary and other
relief, which may be sought on my behalf by other persons or agencies.

     (d) As part of this Release, I agree never to make any claim or institute any suit,
complaint, proceeding, grievance or action of any sort in any court, administrative agency or
tribunal arising from my employment with the Company or any other occurrence prior to my signing
this Release, except as noted in subparagraph (f) below, or to cooperate with any other person who
does so. If I violate this promise, then I agree that I will pay to the Company the lesser of
actual attorney fees and other costs incurred by the Company in defending such suit or the amount
of the Additional Benefits received by me under Section 7 of the Agreement less $5,000.

     (e) This release covers claims that are both known and unknown. I agree to waive all rights
under Section 1542 of the Civil Code of the State of California which, if applicable, provides as
follows: “A general release does not extend to claims which the creditor does not know or suspect
to exist in his favor at the time of executing the release, which if known by him must have
materially affected his settlement with the debtor.” Notwithstanding Section 1542 or similar laws
in other states, I understand that if I should in the future believe or discover that I have any
claims arising before the date I sign this Release and Agreement, that I will not be able to pursue
them.

     (f) This release does NOT waive: (i) any right or claims which might arise after the
date I sign this Release and the Agreement or that cannot be waived in a private agreement as a
matter of law; or (ii) the right to file a charge with, or participate in an investigation or
proceeding conducted by, the Equal Employment Opportunity Commission or similar state or local
agency; or (iii) the right, to the extent permitted by law, to make a claim under the Age
Discrimination in Employment Act that includes a challenge to the validity of this Release; or (iv)
any rights preserved by or created under the Agreement.

3. AGREEMENT. I further agree to comply with all commitments and obligations that are imposed on
me as set forth in the accompanying Agreement.

4. OTHER MATTERS

     (a) RIGHT TO REVOKE. I understand that I may revoke this Release and Agreement within seven
(7) calendar days after I sign it by delivering a written notice of revocation to Paul Varga, 850
Dixie Highway, Louisville, KY 40210, by no later than the close of business on the seventh day
after I sign this Release. I understand that, if I revoke this Release and the Agreement, neither
shall be effective or enforceable and I will not receive the Additional Benefits referred to in
Section 7 of the Agreement.

     (b) ENTIRE AGREEMENT. I agree that this Release and the Agreement and constitute the entire
agreement between the Company and me; that the Company has not made any promises to me other than
as set forth in this Release and the Agreement, and that no amendment or modification may be made
to this Release and the Agreement unless in writing and signed by me and the Company. I agree that
if any part of this Release and Agreement or the accompanying

2

 

letter (and/or attachments thereto) is found to be illegal or unenforceable, the rest of Release
and Agreement will nevertheless be enforceable.

5. CONCLUSION

I ACKNOWLEDGE AND AFFIRM THAT I HAVE CAREFULLY READ THIS RELEASE AND THE AGREEMENT. I UNDERSTAND
THIS RELEASE AND THE AGREEMENT AND HAVE NO QUESTIONS ABOUT WHAT THEY MEAN. I HAVE NOT BEEN FORCED
OR INTIMIDATED IN ANY WAY TO SIGN THIS RELEASE, AND I KNOWINGLY AND VOLUNTARILY ENTER INTO THIS
RELEASE AND THE AGREEMENT AND INTEND THAT THEY BE GIVEN FULL FORCE AND EFFECT.

	 	 	 
	/s/ Phoebe A. Wood	 	 

	 	 	 

	Phoebe A. Wood	 	 

	 
	April 28, 2008	 	 

	 	 	 

	Date Signed	 	 

3

 

Exhibit B

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Options
and SAR’s	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	SHARES	 	 	SHARES	 	 	FIRST	 	 	 	 
	 	 	 	 	 	 	AVAILABLE	 	 	UNAVAILABLE	 	 	EXERCISE	 	 	EXPIRATION	 
	INCENTIVE	 	AWARD DATE	 	 	FOR EXERCISE	 	 	FOR EXERCISE	 	 	DATE	 	 	DATE	 
	Stock Option
	 	 	05/23/2001	 	 	 	17,314	 	 	 	 	 	 	 	05/01/2004	 	 	 	04/30/2011	 
	Stock Option
	 	 	07/31/2001	 	 	 	17,735	 	 	 	 	 	 	 	05/01/2004	 	 	 	04/30/2011	 
	Stock Option
	 	 	07/25/2002	 	 	 	22,562	 	 	 	 	 	 	 	05/01/2005	 	 	 	04/30/2012	 
	Stock Option
	 	 	07/24/2003	 	 	 	14,863	 	 	 	 	 	 	 	05/01/2006	 	 	 	04/30/2013	 
	Stock Option
	 	 	07/22/2004	 	 	 	14,437	 	 	 	 	 	 	 	05/01/2007	 	 	 	04/30/2014	 
	SSAR
	 	 	07/28/2005	 	 	 	 	 	 	 	8,796	 	 	 	05/01/2008	 	 	 	04/30/2015	 
	SSAR
	 	 	07/27/2006	 	 	 	 	 	 	 	8,567	 	 	 	05/01/2009	 	 	 	04/30/2016	 
	SSAR
	 	 	07/26/2007	 	 	 	 	 	 	 	9,869	 	 	 	05/01/2010	 	 	 	04/30/2017	 

 

Exhibit C

Restricted Stock

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	Elapsed
	 	 	 	 	 	Shares	 	 
	 
	 	Restricted
	 	months
	 	Total
	 	Pct
	 	to be	 	 
	Awarded
	 	Shares
	 	Per Agmt
	 	Term
	 	Vested*
	 	Delivered	 	 
	Jul-03
	 	3,797
	 	72
	 	96
	 	75.0%
	 	2,848
	 	 
	Jul-04
	 	4,257
	 	60
	 	60
	 	100.0%
	 	4,257	 	 
	Jul-05
	 	3,227
	 	48
	 	60
	 	80.0%
	 	2,582	 	 
	Jul-06
	 	2,741
	 	36
	 	60
	 	60.0%
	 	1,645	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	Estimated	 	 	 	 
	Current RS award in process
	 	 	 	 	 	Come-in*
	 	 	 	Estimated
	Jul-07
	 	$150,000
	 	24
	 	48
	 	1.6
	 	50.0%
	 	$120,000

			
	 

	*	 	Actual payout will be more or less, based upon the actual come-in determined late May 2008. You
may choose payment in cash or equivalent shares.

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