Document:

EXHIBIT 10.58

 

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.

 

 

 

 

 

 

 

 

 

 

License Agreement

 

F. Hoffmann-La Roche Ltd.

and

Affymetrix, Inc.

dated

January 29, 2003

 

 

 

CONTENTS

 

	
  I.

  	
  Common Terms and
  Definitions.

  	
   

  
	
  II.

  	
  License Grants.

  	
   

  
	
  III.

  	
  Payments

  	
   

  
	
  IV.

  	
  Covenants

  	
   

  
	
  V.

  	
  PCR License Option

  	
   

  
	
  VI.

  	
  Term and Termination.

  	
   

  
	
  VII.

  	
  Warranty and Warranty
  Disclaimers.

  	
   

  
	
  VIII.

  	
  Limited Liability.

  	
   

  
	
  IX.

  	
  Indemnity.

  	
   

  
	
  Exhibit
  A:

  	
  Roche PCR
  Patents

  	
   

  
	
  Exhibit B:

  	
  [***]

  	
   

  
	
  Exhibit
  C:

  	
  Affymetrix
  Designation and Branding Guidelines

  	
   

  
				

 

 

i

 

LICENSE AGREEMENT

 

January 29, 2003

 

This LICENSE AGREEMENT (the “Agreement”)
is effective as of the date first written above (“Effective Date”)
between Affymetrix, Inc., a Delaware corporation (“Affymetrix”), and F.
Hoffmann-La Roche Ltd. (“Roche”).

 

I.              Common Terms
and Definitions.

 

(a)           Common Terms.

(i)            All capitalized terms not otherwise
defined herein shall have the meanings set forth in the Common Terms Agreement,
dated as of even date herewith, between Affymetrix and Roche (the “Common
Terms Agreement”).

(ii)           This Agreement shall be governed by
and subject to the provisions contained in the Common Terms Agreement, in accordance
with its terms.

(b)           Definitions.

(i)            “Acceptance Notice” has the meaning
set forth in Section VI(k)(ii).

(ii)           “Base Sales Royalty” shall have the
meaning set forth in Section III(c)(i).

(iii)          “Comparable License” has the meaning
set forth in Section VI(k)(i).

(iv)          “Competing Products” means all
products that test for the same analytes and that directly compete with a
Diagnostic Product being sold by Roche in that Major Territory, including
specifically the competing Roche Diagnostic Product.

(v)           “Defined Technology” shall mean all
Intellectual Property owned by Affymetrix (other than as set forth below)
useful for the detection of nucleic acids for any human diagnostic purpose
that, (i) insofar as it relates to [***], utilizes less than [***] (“[***]”) or [***] and has a [***]; or (ii) insofar as it involves [***], utilizes [***], provided that each [***] contains no more than [***] individual [***]; provided
that “Defined Technology” does not include any [***] or [***] pertaining to [***], or, in addition, any [***] that is subject to existing exclusive
rights that would prevent the granting of the covenant contained in Section
IV(a).

(vi)          “Enforcement Proceeding” shall have
the meaning set forth in Section III(c)(ii)(2).

(vii)         “First Sale” shall have the meaning set
forth in Section III(c)(i)(B).

 

 

(viii)        “Human Identity Field”  means the field of use comprising products
and processes utilizing PCR for the sole purpose of determining human identity
or distinguishing among human beings, whether living or dead. The term “Human
Identity Field” shall included parentage testing to determine if two or more
human beings are biologically related as parent and child and forensic testing
for use in, or in preparation for, death investigations or other legal
proceedings, but such term shall specifically exclude testing for tissue
typing.

(ix)           “In Vitro Human Diagnostics Field”
means the measurement, observation or determination of attributes,
characteristics, diseases, traits or other conditions of a human being for the
medical management of that human being, including without limitation:

(1)           genetic testing, including
determinations of genetic predisposition;

(2)           oncology and cancer predisposition
testing;

(3)           testing for tissue typing (excluding
the Human Identity Field);

(4)           infectious disease detection,
screening, confirmation and monitoring; and

(5)           therapeutic drug monitoring.

For purposes of this
Agreement, the term “In Vitro Human Diagnostics Field” shall not include the
Human Identity Field, nor shall such term include the measurement or
observation of samples of material other than samples of material obtained from
human beings. In no event shall the term “In Vitro Human Diagnostics Field”
include or be construed to include the performance of PCR for the detection of
pathogens for use in blood bank screening and the plasma fractionation
industry.

(x)            “Licensed Patent” shall have the
meaning set forth in Section III(c)(ii)(1).

(xi)           “Major Competitor” shall mean [***], [***], [***] or [***], or any other entity that competes with
the business currently constituting the diagnostic business units, worldwide,
of F. Hoffmann-La Roche Ltd. and its Affiliates, taken as a whole, provided that any entity shall only be a
“Major Competitor” for so long as it continues to compete with such units.

(xii)          “Major Territory” shall mean any of the following: (i) United
States, (ii) Canada, (iii) Great Britain, (iv) Germany, (v) France, (vi) Italy,
(vii) Spain, (viii) Japan, (ix) Australia, (x) China, (xi) South Korea, (xii)
Taiwan and (xiii) Singapore.

(xiii)         “Minimum Sales Royalty” shall have the
meaning set forth in Section III(c)(i).

 

3

 

(xiv)        “More Favorable Terms” shall have the
meaning set forth in Section IV(j)(i).

(xv)         “PCR License” shall have the meaning
set forth in Section V.

(xvi)        “PCR License Option” shall have the
meaning set forth in Section V.

(xvii)       “PCR Option Fee” shall have the meaning
set forth in Section V.

(xviii)      “Relevant Product” shall mean a product
that tests for the same [***] and that is or would [***] with a [***] that is either (i) being [***] in the relevant [***] or (ii) [***] and with respect to which [***] (A) has spent at least [***] toward the development of such product,
as certified in writing by [***] to Affymetrix; (B) has actually purchased [***] specifically for the development of that
product; and (C) has not abandoned the [***].

(xix)         “Roche Content” shall mean marketable
Content that is either (i) developed by Roche at Roche’s cost and expense or
(ii) developed by a Third Party at Roche’s cost and expense.

(xx)          “Roche Content Development Costs”
shall mean the reasonable costs of the sum of (i) employees (on an FTE
basis),  (ii) overhead expenses and
(iii) any other cost that is expensed for financial accounting purposes under
US GAAP, in each case as actually incurred by Roche for development of Roche
Content.  Roche Content Development
Costs will not include, for example, capital expenditures or any costs that are
to be amortized or depreciated for financial accounting purposes under US GAAP.

(xxi)         “Roche PCR Patents” shall mean those
patents listed on Exhibit A attached hereto.

(xxii)        “[***]” shall mean the [***] Roche to [***] the [***] by Roche for [***] as set forth in Section III(c) of
this Agreement, as determined on a [***] basis.

(xxiii)       “[***]” shall mean a [***] that Roche elects to use in connection
with its [***] in
order to [***] in
accordance with Section III(c) of this Agreement.

(xxiv)       “Substantial Infringer” shall mean a
Third Party infringer of Affymetrix Technology which has achieved at least [***]% of the total Sales of all Relevant
Products in a Major Territory for their particular Relevant Product, which
Relevant Product is Substantially Infringing Affymetrix’ Array patents.

(xxv)        “Substantial Infringement” shall have
the meaning set forth in Section III(c)(ii)(1).

(xxvi)       “Substantially Infringing” shall have the
meaning set forth in Section III(c)(ii)(1).

 

4

(xxvii)      “Termination Date” shall have the meaning
set forth in Section VI(a).

II.            License Grants.

 

(a)           Affymetrix Technology License.  Except as expressly and unambiguously
granted in this Agreement, no transfer or Sale in any form of Arrays,
Affymetrix Instruments or Diagnostic Products by any of Roche and its
Affiliates will constitute any implied or express right or license under the
Affymetrix Technology or any Content of Affymetrix other than the normal
implied license to end-users associated with the Sale of a Diagnostic Product
by Roche or its Affiliates.  Subject to
the terms and conditions of this Agreement, Affymetrix hereby grants to Roche a
limited, [***], [***], [***] (except as provided in Section VI(i) of
the Common Terms Agreement), [***] license, during the term of this Agreement, under the [***] (to the extent Affymetrix is not
prevented under its existing contracts to license such [***] to Roche and its Affiliates) to [***], [***] and [***] to [***] for a [***]. 
Notwithstanding the foregoing, Roche shall have no right to, and will
not (i) [***], [***] or [***] or [***] alone, as a [***] or [***] any [***] except as [***], (ii) [***] or [***] in any manner (except as provided in Section
III(h)(ii)) or (iii) [***] or [***] or [***].

(b)           Obligations to Customers.  Any and all obligations associated with
Roche’s business shall remain the sole responsibility of Roche. Any and all
sales and other agreements between Roche and its customers are and shall remain
Roche’s exclusive responsibility, except as provided in the Supply Agreement,
and shall have no effect on Roche’s obligations pursuant to this
Agreement.  Roche agrees to provide all
technical support and product service (including support for adaptation for diagnostic
uses) for the use of the Diagnostic Products by its customers, other than as
set forth in the Supply Agreement.

(c)           Trademark License. Subject to the terms and conditions of
this Agreement, including Section IV(h) below, Affymetrix hereby grants
to Roche a nonexclusive, worldwide, nontransferable, nonsublicensable,
royalty-free license, during the term of this Agreement, to use and display
Affymetrix Trademarks on Diagnostic Products, Diagnostic Instruments,
components of such Diagnostic Products or Diagnostic Instruments, and materials
related to the marketing, promotion and/or use of Diagnostic Products or
Diagnostic Instruments.  No other right
to use the Affymetrix name or any Affymetrix Trademark is granted or implied by
this Agreement.

III.           Payments.  In consideration for the rights and licenses
granted to it under this Agreement, Roche shall pay Affymetrix the following
amounts on the dates specified, which amounts shall be nonrefundable and
noncreditable except as provided in this Agreement:

 

(a)           Initial Payment.  US$70,000,000 on or within seven days after
the Effective Date.

(b)           Annual License Installment
Payments.  Annual license
installment payments (the “License Installment Payments”) shall be
deemed earned as of January 1, but payable no later than June 1 (or the first
business day thereafter) for the particular year specified as follows:

 

5

 

	
  Payment Date

  	
   

  	
  U.S.
  Dollar Amount

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  [***]

  	
   

  	
  [***]

  	
   

  

 

There [***] the payment due in [***]. 
The actual amount of License Installment Payments indicated above will
be [***] actually payable in cash to Affymetrix on [***] earned through [***]
pursuant to Section III(c) below. 
For
example, if during calendar year [***], Roche would be required to make payments of  $[***] in [***]
pursuant to Section III(c), then Roche would [***] to Affymetrix, representing the [***]. 
If on the other hand during calendar year [***], Roche would be required to [***]
pursuant to Section III(c),
then Roche would [***]
and would carry a $[***]
(but, for avoidance of doubt, [***]) payable pursuant to Section III(c).

(c)           Royalty Payments to Affymetrix.

(i)            Roche and its Affiliates shall pay
Affymetrix quarterly royalties of [***]% of Net Sales (the “Base Sales
Royalty”); provided, however, that the Base Sales Royalty
associated with any particular Diagnostic Product may be reduced to no less
than [***]% of Net
Sales associated with that Diagnostic Product sold by Roche or its Affiliates
(the “Minimum Sales Royalty”) if:

                                (A)          the Diagnostic Product sold utilizes
any Content developed by a Third Party for which Roche must pay royalties on
Net Sales to such Third Party or to Affymetrix for remittance to such Third
Party (in which case the Base Sales Royalty may be reduced (to no less than the
Minimum Sales Royalty), such reduction to be calculated on a dollar for dollar
basis based on royalties actually paid to Third Parties and earned based on the
sale of such Diagnostic Product); and/or

                                (B)           the Diagnostic Product sold utilizes
any Roche Content and Roche, at its option, has elected in writing (which
election has been provided to Affymetrix prior to the first commercial sale of
such Diagnostic Product) the [***] for such Diagnostic Product (in which case the Base Sales Royalty, to
the extent such royalty rate would not drop below the Minimum Sales Royalty
after taking into account the royalty reduction set forth in Section
III(c)(i)(A) above, for such [***] may be reduced on a dollar for dollar basis for Roche Content
Development Costs (i) incurred on or prior to the time the relevant [***] was first 

 

6

 

sold (a
“First Sale”), and (ii) any additional Roche Content Development Costs
incurred after such [***] First
Sale that result in material improvements or revisions to the Roche Content
utilized by the [***].  If Roche elects the [***] for a Diagnostic Product, the amount of the
reduction in the royalty attributable to the Roche Content Development Costs
for such [***] shall
not exceed the aggregate amount of Roche Content Development Costs actually
incurred for that particular [***] (and once Roche has been reimbursed its Roche Content Development Costs
for such [***] in
full, the royalty reduction set forth in this Section III(c)(i)(B) shall
cease).

(ii)           Patent Enforcement.

(1)           Notice of Substantial Infringement.  In the event Roche becomes aware of an
alleged Substantial Infringement of a patent included in the Affymetrix
Technology (a “Licensed Patent”) in a given Major Territory by an
unlicensed Third Party other than Genentech or Chugai, Roche may provide
written notice thereof to Affymetrix (inclusive of documentary evidence of
infringement and market data as to the infringing Sales activity which are
reasonably reliable). “Substantial Infringement” or “Substantially
Infringing” as used in this Section III(c)(ii) shall mean that the
alleged infringing Sales of a Substantial Infringer.

(2)           Enforcement and Royalty Abatements.  If Affymetrix fails, within [***] of delivery of such notice of
Substantial Infringement of a Licensed Patent 
by a Third Party in a given Major Territory, to enter into license
negotiations with or Enforcement Proceedings in such Major Territory against
such Third Party, or if having timely entered into license negotiations with or
Enforcement Proceedings against such Third Party, Affymetrix fails to cause the
Substantial Infringer to cease such Substantial Infringement within the
relevant Major Territory within [***] of delivery of said notice, then until
Affymetrix provides written notice to Roche that such Substantial Infringer has
ceased Substantial Infringement in such Major Territory: (i) if the
Substantially Infringing Sales are at least [***]%, but less than [***]%, of [***] in such Major Territory in any
particular [***], Roche
shall be entitled to a [***]% [***] payable to Affymetrix on Roche’s and its Affiliates’ [***] that are [***] with such Substantially Infringing Sales
in such Major Territory as of such notice; or (ii) if the Substantially
Infringing Sales are at least [***]% of [***] in such Major Territory in any
particular [***], then
Roche shall be entitled to a [***] such that the [***] is equal to [***]% of the [***] of the [***] on such product’s [***]. 
The actual dollar amount of [***] under (i) and (ii) above shall be [***] the next year’s [***] payable pursuant to Section III(b),
if any.  Notwithstanding the foregoing,
(i) if Roche [***] the Third Party that is a Substantial Infringer, in
any case, [***], Roche
shall [***] as
provided in the immediately preceding sentence.  An “Enforcement Proceeding” shall mean a court action or
other legal action brought before a competent patent authority in the relevant
Major Territory.  In the event that a
Substantial Infringement notice has been given with respect to [***] Major Territories for the same Third
Party, Affymetrix’ obligation to enter into license negotiations with or
Enforcement Proceedings against such Third Party within [***] of such notice or obtain the cessation
of Substantial Infringement within [***] shall be satisfied with respect to all
such Major Territories provided Affymetrix 

 

7

 

takes required action and
achieves results within the required time period in no [***] Major Territories, including the most
significant Major Territory to [***], if any, [***]. 
No [***] in any
such Major Territory at any time provided that [***] as indicated above, and upon successful
completion of Enforcement Proceedings in any particular Major Territory,
Affymetrix shall notify Roche and, provided the Substantial Infringement
remains in one or more Major Territories, [***] any Major Territory if Affymetrix
commences action in a replacement Major Territory under the requirements above
as if a new notice of Substantial Infringement has been given; provided
that the [***] period
shall be [***].  In the event that Affymetrix fails to enter
into a license with such Third Party for any Major Territory or to achieve the cessation
of Substantial Infringement in any Major Territory within the [***] period above, then each Major Territory
shall thereafter [***] for such Third Party under this paragraph, and
provided that Substantial Infringement remains in [***] Major Territories, no [***] in such Major Territory under the
requirements above as if a new notice of Substantial Infringement has been
given, provided that the [***] period shall be [***]. 
If no Substantial Infringement exists in any such Major Territory, then
a suit in any other country where Substantial Infringement exists shall satisfy
Affymetrix’ obligation hereunder.

(3)           Continuing Royalty Payment
Obligations. Except to the extent provided in Section III(c)(i)(B) above with respect to
specific Diagnostic Products, Roche’s obligation to pay royalties on the Net
Sales of Diagnostic Products Sold by Roche and its Affiliates shall remain in
effect to the extent provided for in this Agreement notwithstanding any alleged
infringement by any Third Party of any of the Licensed Patents.

(4)           No Roche Right to Enforce the
Licensed Patents.  It is expressly
understood that nothing contained herein shall in any way grant or be construed
to grant to Roche the right to enforce the Licensed Patents or any other
Affymetrix Technology.  Affymetrix shall
have the sole right to bring legal action to enforce the Licensed Patents
against any alleged infringement by any Third Party.

(d)           Milestone Payments.  Whenever during the term of this Agreement
(which shall include the contract year following the delivery of an Early
Termination Notice (as defined below)), Affymetrix or Roche achieves one of the
following milestones that has not been met before with respect to a given [***] or [***], as applicable (each, a “Milestone”),
Roche shall pay Affymetrix the amounts set forth below (each, a “Milestone
Payment”), provided that such
Milestone Payments do not exceed US$[***] in the aggregate or US$[***] in any calendar quarter, with any [***] subject to such [***] and [***]; and, provided further, that any [***] shall be due and payable (subject to
such [***]) upon
notice of early termination of this Agreement:

(i)            Upon the earlier to occur of (A)
initial [***] for a
particular [***] in any
of the [***], [***] or [***], or (B) [***] for such [***] in the [***] of at least $[***] over [***], then for such [***]:

 

8

 

(1)           US$[***] if Affymetrix has [***] substantially to the [***] of such [***]; or

(2)           US$[***] if Affymetrix has [***] substantially to the [***] of such [***]; and

 

(ii)           US$[***] upon Affymetrix’ [***] or Affymetrix’ [***] to the [***] of a [***] (e.g., [***]), including [***], if required, for use in connection with
a [***] that
complies with either (i) all the [***] (including [***]) set forth on Exhibit B hereto or
(ii) all the desired [***] (including [***]) set forth on Exhibit B hereto.

Milestone Payments on Milestones achieved during the
term of this Agreement shall be paid in accordance with Section III(e) below,
but not, in the case of (iii)  above, unless and until the [***] of such [***] in any of the [***], [***] or [***]. 
Notwithstanding anything to the contrary herein, [***]% of the amount of Milestone Payments
paid will be [***] to Affymetrix on [***] earned through [***] pursuant to Section III(c) above,
after [***] set
forth under Section III(b) above, if applicable.

(e)           Payment Terms. All payments to
Affymetrix under this Agreement are non-refundable.  All such payments are to be made in US dollars in the United
States by wire transfer of immediately available funds. All conversions from
foreign currency to US dollars will be determined on the last business day of
each calendar quarter in the calendar quarter in which the payment, revenue,
expenditure, or other transaction involving non-US currency occurred, based on
the relevant spot exchange rate published in the Wall Street Journal on the
last day of that quarter. In no event will Affymetrix be required: (i) to pay
any portion of any deficit and (ii) to make any refund of any amounts paid to
Affymetrix. Except as otherwise set forth herein, payments shall be due 60 days following the end of each quarter
or date of invoice.  Late payments shall
bear interest at the lower of: (xi) the Bank of America prime rate or (y) the maximum
rate allowed by law. All prices and payments to Affymetrix are exclusive of
taxes, duties, shipping, withholdings and the like, all of which will be borne
by Roche (except taxes or withholdings based on Affymetrix’ income), except
such taxes and withholdings that are fully creditable against US income taxes
where Roche (i) supplies any and all necessary or requested certificates and
documentation to receive such credit, and (ii) gives Affymetrix notice of the
requirement for such taxes and withholdings and allows Affymetrix the
opportunity to protest their assessment and collection.

(f)            Taxes.

(i)            Any and all amounts payable
hereunder by a party using a license granted under or pursuant to this
Agreement do not include any government taxes (including without limitation
sales, use, excise, and value added taxes) or duties imposed by any
governmental agency that are applicable to the export, import, or purchase of
the Diagnostic Products and the licensee shall bear all such taxes and duties
(other than taxes on the net income of the licensor). When the licensor has the
legal obligation to collect and/or pay such taxes, the appropriate amount shall
be added to the licensee’s invoice and paid by the licensee, unless the
licensee provides the licensor with a valid tax exemption certificate
authorized by the appropriate taxing authority.

 

9

 

(ii)           All payments by a party using a
license granted under or pursuant to this Agreement are expressed as net
amounts and shall be made free and clear of, and without reduction for, any
withholding taxes. Any such taxes that are otherwise imposed on payments to the
licensor shall be the sole responsibility of the licensee. The licensee shall
provide the licensor with official receipts issued by the appropriate taxing
authority or such other evidence as is reasonably requested by the licensor to
establish that such taxes have been paid. If the licensor uses a foreign tax
credit received by the licensor as a result of the payment of withholding taxes
by the licensee and thereby reduces the amount of United States income tax that
the licensor otherwise would have paid, the licensor shall refund to the
licensee the amount of such reduction with respect to such foreign tax credit.

(g)           Records and Audit Rights. A
Party using a license granted under or pursuant to this Agreement shall provide
to the licensor within 60 calendar days of the end of each calendar quarter a royalty report
outlining the Diagnostic Products (or components thereof) Sold, Net Sales
associated thereto, royalties due and payments made (and credits or offsets
taken) in accordance with this Section III or other applicable
provisions.  Such royalty report will
show breakdowns for each Diagnostic Product in each country, and shall
constitute Confidential Information. 
The licensee shall keep complete and accurate records reflecting all
information necessary or useful in verifying the accuracy of each report. The
licensor shall have the right to hire an independent certified public
accountant to inspect all records required to be kept by the licensee pursuant
to this Agreement (which accountant shall be reasonably acceptable to the
licensee and shall keep all information confidential except to disclose the
fact and amount of any discrepancies); provided,
such audit: (i) is conducted during normal business hours, (ii) is
conducted no more often then once per year, (iii) is conducted only after
the licensor has given 30 days prior written notice, and (iv) the audited Party
has the ability to review the accountant’s report on any discrepancies to
confirm the report does not contain any other Confidential Information. The
audited Party shall, at its own expense, make such records (or copies thereof)
available to the accountant at a single location in the U.S.  The licensor shall bear the full cost and
expense of such audit, unless a discrepancy in excess of 5% of the underage in favor of the
licensor is discovered, in which event the licensee shall bear the full cost
and expense of such audit. Regardless of the amount of discrepancy discovered,
all discrepancies (and interest thereon at the rate set forth in the sixth
sentence of Section III(e) above) shall be immediately due and
payable.

(h)           Default After Acquisition.  If the business currently constituting
Affymetrix should become controlled by, acquire control of or come under common
control with a Major Competitor and following such change in circumstance
Affymetrix or its successor shall have materially breached one or more of the
Collaboration Agreements in a manner that, in Roche’s reasonable judgment,
materially adversely affects the economic opportunity intended to be conveyed
to Roche by the Collaboration Agreements as a whole and such default remains
uncured 60 days
after Roche gives Affymetrix or its successor notice of such default in
reasonable detail, then at any time while such default remains uncured:

(i)              [***], Roche may [***] and thereupon [***] payable as set forth below in the [***] of: (A) the [***] pursuant to [***] (B) [***] (or portion thereof) [***] (C) [***].

 

10

 

(ii)           [***], Roche may [***] (A) [***] and thereupon [***] payable as set forth below in the [***] of: (1) the [***] pursuant to [***] (2) any [***] (or portion thereof) [***] (3) [***], or (B) [***] Roche [***] to allow [***] the [***], [***], [***] (except as set forth in Section VI(i)
of the Common Terms Agreement), [***] under the [***] to make [***] then being sold, effective upon the [***], provided,
that Roche shall [***] only the [***] set forth in [***] above (without regard to any [***] then in existence) as consideration for [***].

(iii)          The foregoing remedies (in (i) or (ii)
above) shall be in addition to, and not in lieu of, all remedies otherwise
available under this Agreement or otherwise. 
Any [***] in a
year under this Section III(h) shall be [***] from the date Roche [***].

IV.           Covenants.  Roche and Affymetrix covenant to one another
as follows:  

 

(a)           Affymetrix Covenant Not to Sue.  For the term of this Agreement, Affymetrix
hereby agrees that it will not bring or initiate any action, whether civil or
criminal, against Roche or its Affiliates for Roche’s or its Affiliate’s use
(or, with respect to human diagnostic products procured or sold by Roche or its
Affiliates, in each case against its customers for such customers’ use or
against its suppliers for such suppliers’ use) of the Defined Technology
to make or have made and sell diagnostic products for any human diagnostic use,
subject to Roche’s compliance with the following requirements and limitations:

(i)            For any Defined Technology used by
Roche or its Affiliates, Roche shall pay to Affymetrix a commercially
reasonable royalty to be determined in good faith by Roche and Affymetrix for
the period of time such Defined Technology is used;

(ii)           Prior to using any [***] to produce a particular [***] using [***], Roche or its Affiliate shall
(A) indicate to Affymetrix [***] and (B)  give Affymetrix [***] for such [***] in lieu of such [***]; provided
that Roche or its Affiliate shall give Affymetrix the opportunity after each [***] to [***] using the [***] and to agree to [***] of such [***]; and provided
further that if Affymetrix agrees to [***], it shall notify Roche within [***] from the date the [***] by Roche to Affymetrix; provided
Affymetrix shall have [***] for [***]. 
Notwithstanding the foregoing, in the event an [***] (except as to [***]) with the [***] Third Party, the time to respond shall
be [***].  If Affymetrix elects to do so, Roche or its
Affiliate shall hire Affymetrix to [***] using the [***]. 
Such [***] shall apply only to the [***] of such [***]; and

(iii)          The covenant not to sue set forth
under this Section IV(a) shall not apply to [***], [***] or [***], or any entity controlled, controlling
or under common control with any of them, regardless of their statuses as a
supplier or customer of Roche.

(b)           Roche Covenant Not to Sue.  For the terms of this Agreement, Roche
hereby agrees that it will not bring or instigate any action, whether civil or
criminal, against Affymetrix or its Affiliates for Affymetrix’ or its
Affiliate’s use (or, with respect to human diagnostic products produced by or
for Affymetrix and sold by Affymetrix or its Affiliates directly or through normal
channels of distribution, against its suppliers or customers for their

 

11

 

use) of Roche Technology
(other than PCR Technology and Roche Content), to use, make or have made and
sell any microarray product for use by Affymetrix or its customers for any
human diagnostic purpose or research use, provided
that for any Roche Technology used by Affymetrix or its Affiliates, Affymetrix
shall pay to Roche a commercially reasonable royalty to be determined in good
faith by Roche and Affymetrix for the period of time such Roche Technology is
used.

(c)           Expiration Dates.  Roche will not ship any Diagnostic Product
from inventory after the expiration date affixed to or otherwise accompanying
such Diagnostic Product or the Array contained therein, or where the remaining
shelf life for such Diagnostic Product or the Array contained therein, as
measured by the difference between the ship date and the expiration date for
such Diagnostic Product or the Array contained therein, is not of reasonable
length.

(d)           Compliance with Law; Regulatory
Approval.

(i)            Each Party will maintain compliance
with all laws, rules, codes, regulations and other legal requirements
applicable to its performance under this Agreement, in accordance with the
regulatory approach and requirements determined by the Parties (as set forth
below).

(ii)           Roche shall determine the regulatory
strategy and Regulatory Approvals required to undertake such strategy, and
shall notify Affymetrix of such determinations promptly, but in no event later
than three months before the earlier of the relevant product’s first Sale or
the Manufacturing Lock-up Point.  Roche
shall not proceed if the strategy presents a material regulatory or legal risk
or obligations beyond those that would apply to a component supplier.  In the event Affymetrix notifies Roche that
it believes that the strategy will present a material risk or obligation, the
Parties will seek resolution pursuant to Section VI(b) of the Common
Terms Agreement.  Roche will determine
the proposed product launch schedule(s) in consultation with Affymetrix.  Affymetrix shall use commercially reasonable
efforts to undertake steps necessary to achieve Roche’s regulatory strategy and
product launch schedule.  Unless otherwise
agreed by the Parties in writing, Roche hereby agrees that if it determines
that a Diagnostic Product requires Regulatory Approval, Roche shall (i) secure
at its own expense all such Regulatory Approval(s) required for
distributing a Diagnostic Product prior to distribution of such Diagnostic
Product to the extent it determines to pursue such distribution; (ii) reimburse
Affymetrix for all Affymetrix expenses related to regulatory compliance with
respect to an Array included in a Diagnostic Product beyond steps necessary to
be a component supplier under applicable regulations; (iii) and shall comply
with all laws, rules, codes, regulations and other legal requirements
applicable to the distribution of such Diagnostic Product; and
(iv) provide to Affymetrix copies of relevant applications and related
documents, all of which will constitute Confidential Information.  Upon Affymetrix’ exercise of its option to
take over distribution or development of a Diagnostic Product following Roche’s
giving of an Early Termination Notice, Roche and its Affiliates shall take all
commercially reasonable steps to transfer and deliver all registrations,
approvals, and government authorizations of Roche or its Affiliate associated
with such Diagnostic Product to, and shall inure to the benefit of, Affymetrix 

 

12

 

or its designee,
at no cost to Affymetrix other than lawfully imposed transfer fees.  In connection with any data transferred to
Affymetrix, Affymetrix shall comply with all legal requirements in connection
with such use.

(e)           Export Control.  Each Party agrees that distribution of the
Diagnostic Products and Roche Instruments under this Agreement shall comply
with applicable U.S. export control laws, rules and regulations, including but
not limited to, the U.S. Export Administration Act, the U.S. International
Emergency Economic Powers Act, the U.S. Trading with the Enemy Act or any other
similar law, rule or regulation imposing restrictions on U.S. trade with
foreign countries.

(f)            Communications with Authorities.  Each Party will immediately notify the other
Party of any adverse or unexpected results with or before an Authority or any
actual or potential action of an Authority relevant to a Diagnostic Product of
which the first Party becomes aware.  In
the event an Authority raises issues regarding this Agreement, the Parties will
use their reasonable commercial efforts to satisfy the Authority’s concerns
without any change to this Agreement. 
If an Authority cannot be satisfied without any change to this
Agreement, the parties will work with one another reasonably and in good faith
to attempt to achieve mutually acceptable resolution that does not materially
compromise either Party’s rights and that changes this Agreement to the minimum
extent necessary. Each Party agrees promptly to provide the other Party with
copies of all correspondence to or from an Authority and summaries of oral
dealings with such Authority.

(g)           Significant Problems.  Each Party will keep the other informed as
to any significant problems encountered with the Diagnostic Products that
relate to components or products supplied by the other Party and any solutions
arrived at for those problems, and will communicate promptly to the other Party
any and all material modifications, design changes or improvements of the
Diagnostic Products suggested by any customer or by any employee or agent of
such Party, as long as such disclosures do not violate any existing
confidentiality obligations that such Party has to any Third Party, and such
Party shall use reasonable efforts to obtain the right to disclose such
information; and the receiving Party will, within a reasonable time after
receiving any information about problems with the Diagnostic Products, inform the
other Party of the steps (if any) that the receiving Party intends to take with
respect to such problems.

(h)           Potential Infringement.  Each Party will notify the other Party of:
(i) any potential infringement of any of such other Party’s Intellectual Property
of which it becomes aware; (ii) any potential infringement by any Third Party
of any of the Intellectual Property incorporated in, embodied by or relied upon
to manufacture a Diagnostic Product; or (iii) any potential infringement by a
Diagnostic Product of any Content or Intellectual Property owned or asserted to
be owned by a Third Party of which it becomes aware.  Either Party’s notice under this Section IV(h) shall be
Confidential Information and shall not be disclosed to the alleged infringer or
any other party without the other Party’s prior written consent.

(i)            Designations and Branding.  The branding of Diagnostic Product shall be
determined by Roche after consultation with Affymetrix.  Subject to the applicable regulatory
requirements, each Diagnostic Product shall bear an Affymetrix Designation
substantially in the 

 

13

 

form agreed to by the
Parties and attached hereto as Exhibit C or as otherwise agreed by the
Parties in writing.  Furthermore, an
Affymetrix Designation shall appear on all promotional, instructional and other
materials that accompany such Diagnostic Products in form and in accordance
with the branding guidelines set forth on Exhibit C (which may be
updated from time to time by providing a copy of the revised branding
guidelines to Roche; Roche shall use commercially reasonable efforts to
implement such revised guidelines promptly), unless otherwise agreed by the
Parties in writing.  All use of
Affymetrix’ name or the Designations of Affymetrix on any Diagnostic Product
and all promotional, instructional and other materials related thereto shall be
subject to Affymetrix’ branding guidelines then in effect and shall be done in
compliance with applicable law and any regulatory strategy adopted. All
Designations will be printed in English unless otherwise mutually agreed by the
Parties in writing.

(j)            Materials and Literature.  Roche will be responsible for determining
all promotional, advertising, educational and other materials and programs,
labels, label claims, package data sheets, and other literature relating to the
Diagnostic Products after consultation with Affymetrix.  None of such materials will misrepresent the
Affymetrix components of the Diagnostic Products or refer to such components
in a manner that is reasonably likely to prejudice Affymetrix’ Intellectual
Property incorporated therein.  Roche
agrees that it is solely responsible for the compliance of such materials and
literature with any applicable laws, regulations, or rules.  Roche’s use of materials and literature will
be consistent with the regulatory regime adopted by the Parties pursuant to Section
IV(d).  Roche will not violate any
applicable laws, regulations, or rules with respect to use and sale of Diagnostic Products.

(k)           Most Favorable Terms and
Conditions.

(i)            More Favorable Terms (“More
Favorable Terms”) shall be determined by evaluating the new [***] initially to determine if it involves a [***] or not. 
A “[***]” is a [***] granted by Affymetrix conveying the
right to [***] to [***] and which has a scope [***] than the scope of the [***], and covers at least one of the [***], [***] or the combination of [***], [***] and the [***]. 
After such determination, the [***] will be evaluated as a whole using the
following factors: (a) for a [***] only, the [***] shall be taken into account; (b) the [***] shall not be taken into account; (c) the
[***] that
are [***] to
those that Roche is receiving hereunder will be measured for the [***] by the [***]; (d) 
the [***]
that are [***] to
those that Roche is receiving hereunder will be measured for [***], so that the More Favorable Terms will [***]; (e) 
[***] such as
[***] the
Third Party shall not be taken into account; and (f) the combined effect of the
[***] under
the [***] and the
[***] for [***] by Affymetrix [***].

(ii)           If, after the Effective Date,
Affymetrix grants to any Third Party a [***] but under More Favorable Terms than
those given to Roche under this Agreement, Affymetrix shall notify Roche in
accordance with this Section IV(j) of such More Favorable Terms, and
Roche shall have the right and option to (with respect to [***] in [***] and applicable to the [***] to which the [***]) substitute such More Favorable Terms
for the [***].  In the event a [***] does not include all three of the [***], [***] and the combination of [***], [***] and the [***] geographical markets, the amount of  the [***] shall be [***] based on the [***] in the [***] geographic areas.  Such right and option shall be exercisable
by Roche by providing written notice of acceptance to 

 

14

 

Affymetrix within [***] of the date of receipt of notice from
Affymetrix of such More Favorable Terms (“Acceptance Notice”).

(iii)          Roche’s right as described above to
elect such More Favorable Terms shall extend only for so long as and shall be
conditioned on Roche’s acceptance of all the same conditions, favorable or
unfavorable, under which such More Favorable Terms shall be available to such
Third Party in the particular license including any limitations or restrictions
in the applicable scope of license, any increase in license fees.  Upon Roche’s acceptance of all such More
Favorable Terms of such Third Party agreement, pursuant to an Acceptance Notice
within the ninety (90) day period as provided above, the More Favorable Terms
shall be effective as to Roche as of the effective date of such Third Party
agreement.

(iv)          Promptly following the end of each
calendar month in which a transaction has occurred in which Affymetrix has
granted a license as described above to a Third Party on More Favorable Terms,
Affymetrix shall provide written notice to Roche indicating: (x) that it has
entered into such a license; (y) the territories covered by the license; and
(z) the material terms and conditions of the license.  Any notice delivered to Roche under this paragraph shall be
signed by at least one of the following officers of Affymetrix:  the Chief Executive Officer, the President,
the Chief Financial Officer, the Chief Operating Officer, the General Counsel
or a Senior Vice President of Business Development.  For purposes of this paragraph, a transaction shall be deemed to
have “occurred” upon the execution of a definitive agreement with the Third
Party granting a license; provided that the application of More Favorable Terms
shall only apply to any Diagnostic Product of Roche upon the commercial launch
to the public of a competitive Diagnostic Product of the Third Party in the
applicable geographic market (except as to any up front payments in Comparable
Licenses).

(l)            Sublicenses.  To the extent that Third Party Content is utilized in a
Diagnostic Product, and Roche has or obtains a license granting Roche the
right to use such Third Party Content for that Diagnostic Product, Roche agrees
to use commercially reasonable efforts to obtain the right with no additional cost to Roche to
sublicense to Affymetrix and its Affiliates in connection with any transfer
pursuant to Section VI(b), on terms no less favorable than those
granted to Roche or its Affiliates.  To
the extent that Affymetrix licenses or otherwise causes the development of any
Third Party Content for use in a potential Diagnostic Product during the term
of this Agreement, Affymetrix agrees to use commercially reasonable efforts to
obtain, at no additional cost to Affymetrix, the right to sublicense to Roche
and its Affiliates any license granting Affymetrix the right to use such Third
Party Content on terms no less favorable to Roche than those granted to Affymetrix.

(m)          No Challenge of Intellectual
Property.  Each party agrees that it
and each of its Affiliates will not (and will immediately cease) challenge,
attack or otherwise question the validity of any Intellectual Property of the
other party licensed under this Agreement or any other Collaboration Agreement
during the term of this Agreement.  Each
party agrees that it will not fund or otherwise aid or cause any Third Parties
(including, without limitation, Genentech or Chugai) in any challenge, attack or
questioning of validity of any Intellectual Property of the 

 

15

 

other party licensed
pursuant to this Agreement or any other Collaboration Agreement during the term
of this Agreement.

V.            PCR License Option.  Affymetrix agrees to pay Roche within [***] Dollars ($[***]) for
the option and related rights set forth in this Section V (the “PCR
Option Fee”).  From the Effective
Date through the earliest of (i) [***], or (ii) [***] after any
termination of this Agreement pursuant to Section VI(b), Affymetrix
shall have the option (the “PCR License Option”) to cause Roche to
grant to Affymetrix and its Affiliates a [***], [***] under the [***] to [***]
(including those transferred to Affymetrix pursuant to Section VI(b)) in
the [***] upon Roche’s [***] (the “PCR License”).  If Affymetrix exercises the PCR License
Option, it shall pay Roche the [***] for the [***] PCR License then elected by
Affymetrix on the date of exercise of the PCR License Option; provided that the
[***] shall be [***].  Notwithstanding
the foregoing, in [***] Affymetrix [***] to Roche for [***] under the PCR
License on [***]; and, in addition, the Parties agree that the [***]
attributable to PCR for [***] the PCR License, shall be [***] (i) 40%
through [***], and (ii) thereafter, the [***]%, the [***] Roche provides
[***] in the [***] to Affymetrix or any Third Party or the [***] by a mutually
agreed upon industry expert to reflect the [***] as a [***] of the product
sold.

 

VI.           Term and Termination.

 

(a)           Term. Unless terminated
earlier as provided herein, this Agreement shall commence on the Effective Date
and shall terminate on December 31, 2020 (the “Termination Date”).

(b)           Early Termination without Cause.
Roche shall have the option of terminating this Agreement in its entirety
effective on December 31, 2007, June 2, 2013 or any date after June 2, 2013 but
prior to the Termination Date by written notice to Affymetrix (“Early
Termination Notice”) as provided herein. 
An Early Termination Notice must be provided at least one year prior to
early termination. If Roche terminates effective as of June 2, 2013, Roche
shall pay to Affymetrix the License Installment Payment deemed earned January
1, 2013 and payable June 1, 2013 but shall have no obligation to pay any
further License Installment Payment required hereunder (but shall continue to
pay royalties on Diagnostic Product sales through the final termination date of
this Agreement in accordance with the terms hereof).  The Early Termination Notice must enumerate all Diagnostic
Products developed, under development or that were abandoned or discontinued in
connection with the decision to provide an Early Termination Notice by Roche,
and Roche shall fully respond to reasonable Affymetrix inquiries regarding such
Diagnostic Products in order to permit Affymetrix to notify Roche which
Diagnostic Products, whether existing or currently under development, it
intends to continue to market and/or develop. 
Affymetrix shall notify Roche with respect to each such Diagnostic
Product in one or more notices, not later than 180 days after delivery of the
Early Termination Notice.  Promptly
after each such Affymetrix notice, Roche shall transfer to Affymetrix all such
Diagnostic Products so designated by Affymetrix for distribution and/or
development by Affymetrix.

Roche agrees to assist
Affymetrix in facilitating the transition of the sale of Diagnostic Products
from Roche to Affymetrix as set forth in the foregoing sentence and to provide
reasonable support to Affymetrix to continue sales of Diagnostic Products
(including for a period 

 

16

 

of time reasonably necessary to
develop a replacement Diagnostic Instrument, a supply of all Diagnostic
Instruments developed and then commercially marketed (or abandoned or
discontinued in connection with the decision to provide an Early Termination
Notice) by Roche at their [***] plus a [***]% of [***]), to the extent Roche
has therefore commenced marketing of such Diagnostic Instruments).  Roche shall use commercially reasonable
efforts to provide all necessary ancillary products, technical, marketing, and
customer information then in its possession or control as is necessary to
continue selling and supporting the Diagnostic Products previously distributed
by Roche and will work with Affymetrix at Affymetrix’ option so that Affymetrix
could being selling such products as soon as possible but not later than upon
termination by Roche.  All Roche
Intellectual Property used in such Diagnostic Products (and the Diagnostic
Instruments used in connection therewith), other than jointly-owned
Collaboration IP, shall be made available for license to Affymetrix and its Affiliates on
commercially reasonable terms (including the right to [***] (i) royalties payable to Third
Parties by virtue of use of Third Party Content and (ii) the development costs
of any Affymetrix Content utilized, against any royalties payable to Roche
under the PCR License), with other customary and usual terms and conditions.  In addition, to the extent Roche has been
granted licenses by Third Parties to use Third Party Content in any Diagnostic
Product previously distributed by Roche which include the right to sublicense
Affymetrix pursuant to Section IV(l), Roche shall sublicense or assign
all such licenses to Affymetrix and its Affiliates on terms no less favorable
than those granted to Roche or its Affiliates.  All
tangible and intangible property (other than regulatory materials and data
pursuant to Section IV(d)(ii) above, as to which Roche hereby warrants
that such is a true, complete and accurate copy of its regulatory materials and
data) transferred or licensed to Affymetrix pursuant to this Section VI(b)
would be transferred AS IS, WHERE IS, WITH ALL FAULTS and with a full
disclaimer of any express or implied warranties.  In the event this Agreement is terminated pursuant to this Section
VI(b), Roche agrees not to take any action that would harm or interfere
with the regulatory status, regime or strategy established for a Diagnostic
Product.

 

If
Roche terminates this Agreement prior to January 1, 2021, Affymetrix shall be
deemed to have been granted a worldwide, nonexclusive license to use the Roche
Content utilized in any [***] pursuant to the terms in the following sentence. If a Diagnostic Product transferred to Affymetrix
pursuant to this Section VI(b) is then being commercially sold and
includes patented Roche Content as to which Roche had theretofore exercised [***], the royalty rate applicable to such
patented Roche Content shall not exceed [***]% of [***] minus (but not below zero) all [***] used in such [***], and the aggregate [***] pursuant to [***] shall [***] the associated [***] not recovered pursuant to the [***]. 
All tangible property selected by Affymetrix for transfer pursuant to
this Section VI(b) will be transferred [***] to Roche or its Affiliates.

Furthermore, if Roche
terminates this Agreement pursuant hereto, Affymetrix shall be deemed to have
been granted a fully-paid, royalty-free, worldwide, nonexclusive license to use
all data in Roche’s possession or control relating to the transferred
Diagnostic Products other than for use proscribed by Section III(e)(ii)
of the Supply Agreement.

(c)           Termination for Cause. This
Agreement may be terminated in its entirety by a Party for cause immediately
upon the occurrence of any of the following events:

 

17

 

(i)            If the other ceases to do business,
or otherwise terminates its business operations;

(ii)           If the other Party materially
breaches any material provision of this Agreement and fails to cure such breach
within 180 days of written notice describing the breach and the intent of such
Party to terminate if such breach is not cured within such period (provided,
however, that nothing in this subsection shall prevent a Party from
seeking immediate, injunctive relief where appropriate to protect Confidential
Information, such Party’s proprietary or intellectual property rights or
otherwise for any reason to mitigate damages);

(iii)          If the other Party shall seek
protection under any bankruptcy, receivership, trust deed, creditors
arrangement, composition or comparable proceeding, or if any such proceeding is
instituted against the other Party (and not dismissed within 90 days).

(d)           Intellectual Property
Infeasibility.  If one or more [***] are [***] or the combination of [***], but excluding [***] that are [***] or the combination of [***], that [***] within [***] that prevents [***] with [***], or prevents [***], then at any time thereafter but in no
event after [***], Roche [***] Affymetrix, [***] in such notice.  Upon the [***], Affymetrix shall [***] whose [***] is the [***] remaining between such [***] and [***] and whose denominator is [***], provided that such [***] shall in no event exceed US$[***]. 
If  Roche [***] pursuant to the [***] set forth in this Section VI(d)
above, Roche shall indicate its choice to do one of the following in the
above-described [***]:

(i)            [***] and [***], representing up to [***]% of the [***]. 
The specific amount of the [***] payable upon [***] pursuant to this Section VI(d)
shall be calculated by multiplying $[***] between the [***] pursuant to this Section VI(d)
above and [***] and
whose denominator is [***]; or

(ii)           honor the [***], in accordance with Section V
above (except for terms describing when such option may be exercised), for [***] after the [***] pursuant to this Section VI(d)
above.

 

(e)           Effect of Termination. Sections
III (Payments), V (PCR License Option), VI (Term and
Termination), VII (Warranty), VII (Limited Liability) and IX
(Indemnity), all rights to payment in effect through the final termination date
of this Agreement pursuant to Section VI (Term and Termination), the
Common Terms Agreement, remedies for breaches or any other provision that, by
its terms, survives termination shall survive termination of this Agreement.
Obligations of the Parties under firm orders for purchase and delivery of
Arrays at the time of such termination shall remain in effect, except that in
the case of termination under Section VI(c), the terminating Party may
elect whether obligations under firm orders will remain in effect. Each Party
will promptly return or destroy all Confidential Information of the other in
accordance with Section II(f) of the Common Terms Agreement. Termination
is not the sole 

 

18

 

remedy under this
Agreement and, whether or not termination is effected, all other remedies will
remain available.

VII.          Warranty and Warranty
Disclaimers.

 

EXCEPT AS EXPRESSLY SET FORTH
IN THIS AGREEMENT OR ANOTHER COLLABORATION AGREEMENT, AFFYMETRIX DOES NOT
WARRANT THE MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF THE ARRAYS
OR DIAGNOSTIC PRODUCTS OR PERFORMANCE OR NON-INFRINGEMENT THEREOF, DOES NOT
MAKE ANY WARRANTY, EXPRESS, IMPLIED OR OTHERWISE, WITH RESPECT TO ARRAYS OR
DIAGNOSTIC PRODUCTS, SPECIFICATIONS, SUPPORT, SERVICE OR ANYTHING ELSE, AND
DOES NOT MAKE ANY WARRANTY OF ANY KIND TO ROCHE’S CUSTOMERS OR AGENTS. AFFYMETRIX
HAS NOT AUTHORIZED ANYONE TO MAKE ANY REPRESENTATION OR WARRANTY OTHER THAN AS
PROVIDED ABOVE.

 

VIII.        Limited Liability.  

 

EXCEPT IN CONNECTION WITH
SECTION II (CONFIDENTIALITY) OF THE COMMON TERMS AGREEMENT OR AMOUNTS PAYABLE
UNDER SECTION XII (WARRANTY) OR SECTION IX (INDEMNITY) OF THIS AGREEMENT,
NEITHER PARTY WILL BE LIABLE WITH RESPECT TO ANY SUBJECT MATTER OF THIS
AGREEMENT UNDER ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY, OR OTHER LEGAL OR
EQUITABLE THEORY FOR ANY PUNITIVE, MULTIPLE, OR EXEMPLARY DAMAGES, OR LOST
PROFITS.

 

IX.           Indemnity.  

 

(a)           Indemnification from Infringement.

(i)            Affymetrix shall indemnify, defend
and hold harmless the Roche Indemnitees from and against liability resulting
from infringement by the Arrays of any Third Party patent (other than Roche
patents, patents of any Affiliate of Roche or patents of Genentech or Chugai)
or from any matter referred to in the second sentence of (ii) below, provided
Affymetrix is promptly notified of any and all threats, claims and proceedings related
thereto and given reasonable assistance and the opportunity to assume sole
control over the defense and all negotiations for a settlement or compromise;
Affymetrix will not be responsible for any settlement it does not approve in
writing (provided, however, that Affymetrix will consult with
Roche if a proposed settlement or compromise could reasonably be interpreted to
impact the benefits that Roche receives under this Agreement in a materially
negative manner). The foregoing obligation of Affymetrix does not apply with
respect to Arrays or portions or components: (w) not supplied by Affymetrix;
(x) made in whole or in part in accordance to Roche specifications or requests,
to the extent the infringement was caused thereby; (y) which are modified by Roche
or any Third Party after shipment by Affymetrix, if the alleged infringement
relates to such modification; or (z) combined, processed or used with other 

 

19

 

products
(including, without limitation, as part of Diagnostic Products), processes or
materials where the alleged infringement relates to such combination, process
or use.

Where Roche
facilitates or fails to stop (to the extent within its power) allegedly
infringing activity after being notified thereof or after being informed of
modifications that would have avoided the alleged infringement, the foregoing
indemnification provisions will apply but Affymetrix will not need to pay any
settlement, judgment, or other amounts attributable to events occurring after
giving such notice to Roche.

(ii)           Roche shall indemnify, defend and
hold harmless the Affymetrix Indemnitees from and against liability resulting
from infringement by Roche Technology of any Third Party patent (other than
Affymetrix patents, patents of any Affiliate of Affymetrix or patents of
Perlegen) or from any matter referred to in the second sentence of subsection
(i) above,  provided Roche is promptly
notified of any and all threats, claims and proceedings related thereto and
given reasonable assistance and the opportunity to assume sole control over the
defense and all negotiations for a settlement or compromise; Roche will not be
responsible for any settlement it does not approve in writing (provided,
however, that Roche will consult with Affymetrix if a proposed
settlement or compromise could reasonably be interpreted to impact the benefits
that Affymetrix receives under this Agreement in a materially negative manner).
The foregoing obligation of Roche does not apply with respect to Roche
Technology used in Diagnostic Products: (y) 
which are modified by Affymetrix after shipment by Roche, if the alleged
infringement relates to such modification; or (z) combined, processed or used
with other products, processes or materials where the alleged infringement
relates to such combination, process or use.

 

Where Affymetrix
facilitates or fails to stop (to the extent within its power) allegedly
infringing activity after being notified thereof or after being informed of
modifications that would have avoided the alleged infringement, the foregoing
indemnification provisions will apply but Roche will not need to pay any
settlement, judgment, or other amounts attributable to events occurring after
giving such notice to Affymetrix.

(b)           Indemnity Relating to Products.  Roche shall indemnify, defend and hold
harmless the Affymetrix Indemnitees from and against any and all Damages based
upon or arising out of the import, sale or use of Diagnostic Products except to
the extent that such Damages (i) relate to or arise from Arrays or
Affymetrix Instruments supplied by Affymetrix or any matter to be indemnified
by Affymetrix pursuant to Section IX(a)(i) or (ii) arise after
the transfer of such Diagnostic Products to Affymetrix pursuant to Section
VI(b).

(c)           Conditions of Indemnification.  If either Party proposes to seek
indemnification from the other under the provisions of this Section IX,
it shall notify the other Party within 15 days of receipt of notice of any
Claim and shall cooperate fully with the other Party in the defense of such
claims or suits. The indemnified Party shall cooperate with the indemnifying
Party (at the indemnifying Party’s expense) in all respects in connection with
the defense of any such Claim.  The
indemnifying Party shall, upon written notice from the indemnified Party of a
Claim, undertake to conduct all proceedings or negotiations in connection with
the Claim, assume the defense thereof, and all other required steps or
proceedings to settle 

 

20

 

or defend any such Claim,
including the selection of counsel that shall be approved by the indemnified
Party, which approval shall not be unreasonably withheld, and payment of all
reasonable expenses.  The indemnified
Party shall have the right to employ separate counsel and participate in the
defense at the indemnified Party’s sole expense.  If the indemnifying Party fails to defend or settle in good faith
any Claim as provided above, then the indemnified Party shall have the right to
take over sole control of the defense of the Claim and all negotiations for its
settlement or compromise, provided that the indemnifying Party shall be
liable for (and shall pay as they become due) all costs and expenses (including
attorneys’ fees) reasonably incurred by the indemnified Party in its defending
or negotiating settlement of the Claim. 
Notwithstanding the foregoing, the Party primarily responsible for
handling the Claim (as determined above) will first obtain the prior written
consent of the other Party for any settlement of a Claim that (i) does not
include a complete release of the other Party from all liability with respect
thereto, (ii) compromises the rights of the other Party, or (iii) imposes any
restrictions on the other Party.

 

 

21

 

                IN WITNESS WHEREOF, the undersigned have executed
this Agreement as of the Effective Date.

 

	
  AFFYMETRIX:

  	
  ROCHE:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Affymetrix,
  Inc.

  	
  F.
  Hoffmann-La Roche Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Barbara
  A. Caulfield  

  	
   

  	
  By:

  	
  /s/ Heino
  von Prondzynski

  
	
   

  	
  Name:

  	
  Barbara A. Caulfield

  	
   

  	
  Name:

  	
  Heino von
  Prondzynski 

  
	
   

  	
  Title:

  	
  Executive Vice President and 

  	
   

  	
  Title: 

  	
  Head,
  Diagnostic Division

  
	
   

  	
  General Counsel

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:  

  	
  /s/ Gregory
  F. Heath

  
	
   

  	
   

  	
   

  	
   

  	
  Name: 

  	
  Gregory F.
  Heath

  
	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Head,
  Business Development and 

  
	
   

  	
   

  	
   

  	
  Licensing

  
	
   

  	
   

  
								

 

 

 

EXHIBIT A

 

ROCHE PCR
PATENTS

 

FOUNDATIONAL
PCR PATENTS

 

[*  *  *]

 

U.S. Patent No. 4,683,195 -
Issued:  July 28, 1987

Process for Amplifying,
Detecting, and/or Cloning Nucleic Acid Sequences

 

U.S. Patent No. 4,683,202 -
Issued:  July 28, 1987

Process for Amplifying Nucleic
Acid Sequences

 

U.S. Patent No. 4,965,188 -
Issued:  October 23, 1990

Process for Amplifying,
Detecting, and/or Cloning Nucleic Acid Sequences Using a Thermostable Enzyme

 

U.S. Patent No. 6,040,166 -
Issued:  March 21, 2000

Kits for amplifying and
detecting nucleic acid sequences, including a probe

 

U.S. Patent No. 6,197,563 -
Issued:  March 6, 2001

Kits for amplifying and
detecting nucleic acid sequences

 

U.S. Patent No. 5,219,727 - Issued:  June 15, 1993

Quantitation of Nucleic Acids
Using the Polymerase Chain Reaction

 

U.S. Patent No. 5,310,652 -
Issued:  May 10, 1994

Reverse Transcription With
Thermostable DNA Polymerase - High Temperature Reverse Transcription

 

U.S. Patent No. 5,322,770 -
Issued:  June 21, 1994

Reverse Transcription With
Thermostable DNA Polymerases - High Temperature Reverse Transcription

 

U.S. Patent No. 5,407,800 -
Issued:  April 18, 1995

Reverse Transcription With
Thermus thermophilus Polymerase

 

U.S. Patent No. 5,476,774 -
Issued:  December 19, 1995

Quantitation of Nucleic Acids
Using the Polymerase Chain Reaction

 

U.S. Patent No.  5,641,864 - Issued:  June 24, 1997

Kits for High Temperature
Reverse Transcription of RNA

 

 

 

IMPROVEMENTS

 

[*  *  *]

 

U.S. Patent No. 4,800,159 -
Issued:  January 24, 1989

Process for Amplifying,
Detecting, and/or Cloning Nucleic Acid Sequences

 

U.S. Patent No. 5,066,584 -
Issued:  November 19, 1991

Methods for Generating
Single-Stranded DNA by the Polymerase Chain Reaction

 

U.S. Patent No. 5,075,216 -
Issued:  December 24, 1991

Methods for DNA Sequencing with
Thermus aquaticus DNA Polymerase

 

U.S. Patent No. 5,091,310 -
Issued:  February 25, 1992

Structure-Independent
Amplification by PCR

 

U.S. Patent No. 5,142,033 -
Issued:  August 25, 1992

Structure-Independent
Amplification by PCR

 

U.S. Patent No. 5,314,809 -
Issued:  May 24, 1994

Methods for Nucleic Acid
Amplification

 

U.S. Patent No. 5,389,512 -
Issued:  February 14, 1995

Method for Determining the
Relative Amount of a Viral Nucleic Acid Segment in a Sample by the Polymerase
Chain Reaction

 

U.S. Patent No. 5,411,876 -
Issued:  May 2, 1995

Use of Grease or Wax in the
Polymerase Chain Reaction

 

U.S. Patent No. 5,418,149 -
Issued:  May 23, 1995

Reduction of Non-Specific
Amplification Using dUTP and Uracil DNA Glycosylase

 

U.S. Patent No. 5,512,462 -
Issued:  April 30, 1996

Methods and Reagents for the
Polymerase Chain Reaction Amplification of Long DNA Sequences

 

U.S. Patent No. 5,561,058 -
Issued:  October 1, 1996

Methods For Coupled High
Temperatures Reverse Transcription And Polymerase Chain Reactions

 

U.S. Patent No. 5,565,339 -
Issued:  October 15, 1996

Compositions and Methods for
Inhibiting Dimerization of Primers During Storage of Polymerase Chain Reaction
Reagents

 

 

 

U.S. Patent No. 5,618,703 -
Issued:  April 8, 1997

Unconventional Nucleotide
Substitution in Temperature Selective RT-PCR

 

U.S. Patent No. 5,693,517 -
Issued:  December 2, 1997

Reagents And Methods For
Coupled High Temperature Reverse Transcription And Polymerase Chain Reactions

 

U.S. Patent No. 6,001,611 -
Issued:  December 14, 1999

Modified Nucleic Acid
Amplification Primers

 

U.S. Patent No. 6,274,386 -
Issued:  August 14, 2001

Reagent Preparation Containing
Magnetic Particles in Tablet Form

 

U.S. Patent No. 6,365,375 -
Issued:  April 2, 2002

Method of Primer-Extension
Preamplification PCR

 

U.S. Patent No. 6,509,157 -
Issued: January 21, 2003

3 Blocked Nucleic Acid
Amplification Primers

 

DETECTION
METHODS

 

[*  *  *]

 

U.S. Patent No. 4,582,789 -
Issued:  April 15, 1986

Process for Labeling Nucleic
Acids Using Psoralen Derivatives

 

U.S. Patent No. 4,789,630 -
Issued:  December 6, 1988

Ionic Compounds Containing the
Cationic Meriquinone of a Benzidine

 

U.S. Patent No. 5,210,015 -
Issued:  May 11, 1993

Homogeneous Assay System Using
the Nuclease Activity of a Nucleic Acid Polymerase

 

U.S.
Patent No. 5,278,043 - Issued:  January
11, 1994

Ruthenium-Lumazine
Energy Transfer Systems

 

U.S. Patent No. 5,468,613 -
Issued:  November 21, 1995

Process for Detecting Specific
Nucleotide Variations and Genetic Polymorphisms Present in Nucleic Acids

 

U.S. Patent No. 5,487,972 -
Issued:  January 30, 1996

Nucleic Acid Detection by the
5’-3’ Exonuclease Activity of Polymerases Acting on Adjacently Hybridized
Oligonucleotides

 

 

 

U.S. Patent No. 5,491,063 -
Issued:  February 13, 1996

Methods for In-Solution
Quenching of Fluorescently Labeled Oligonucleotide Probes

 

U.S. Patent No. 5,571,673 -
Issued:  November 5, 1996

Methods for In-Solution
Quenching of Fluorescently Labeled Oligonucleotide Probes

 

U.S. Patent No. 5,573,906 -
Issued:  November 12, 1996

Detection
Of Nucleic Acids Using A Hairpin Forming Oligonucleotide Primer And An Energy
Transfer Detection System

 

U.S. Patent No. 5,604,099 -
Issued:  February 18, 1997

Process for Detecting Specific
Nucleotide Variations and Genetic Polymorphisms Present in Nucleic Acids

 

U.S. Patent No. 5,804,375 -
Issued:  September 8, 1998

Reaction Mixtures For Detection
Of Target Nucleic Acids

 

U.S. Patent No. 5,994,056 -
Issued:  November 30,1999

Homogeneous Methods For Nucleic
Acid Amplification And Detection

 

U.S. Patent No. 6,171,785 -
Issued:  January 9, 2001

Methods And Devices For
Homogeneous Nucleic Acid Amplification And Detection

 

U.S. Patent No. 6,214,979 -
Issued:  April 10, 2001

Homogeneous Assay System

 

ENZYMES

 

[*  *  *]

 

U.S. Patent No. 4,889,818 -
Issued:  December 26, 1989

Purified Thermostable Enzyme

 

U.S. Patent No. 5,079,352 -
Issued:  January 7, 1992

Purified Thermostable Enzyme

 

U.S. Patent No. 5,352,600 -
Issued:  October 4, 1994

Purified Thermostable Enzyme

 

U.S. Patent No. 5,374,553 -
Issued:  December 20, 1994

DNA Encoding a Thermostable
Nucleic Acid Polymerase Enzyme From Thermotoga maritima

 

U.S. Patent No. 5,405,774 -
Issued:  April 11, 1995

 

 

 

DNA Encoding a Mutated Thermostable
Nucleic Acid Polymerase Enzyme From Thermus Species Sps17

 

U.S. Patent No. 5,420,029 -
Issued:  May 30, 1995

Mutated Thermostable Nucleic
Acid Polymerase Enzyme From Thermotoga maritima

 

U.S. Patent No. 5,455,170 -
Issued:  October 3, 1995

Mutated Thermostable Nucleic
Acid Polymerase Enzyme From Thermus Species Z05

 

U.S. Patent No. 5,466,591 -
Issued:  November 14, 1995

5’ to 3’ Exonuclease Mutations
of Thermostable DNA Polymerases

 

U.S. Patent No. 5,491,086 -
Issued:  February 13, 1996

Purified Thermostable Nucleic
Acid Polymerase and DNA Coding Sequences From Pyrodictium Species

 

U.S. Patent No. 5,618,711 -
Issued:  April 8, 1997

Recombinant Expression Vectors
and Purification Methods for Thermus Thermophilus DNA Polymerase

 

U.S. Patent No. 5,624,833 -
Issued:  April 29, 1997

Purified Thermostable Nucleic
Acid Polymerase Enzyme  From Thermotoga
maritima

 

U.S. Patent No. 5,665,551 -
Issued:  September 9, 1997

Purified Nucleic Acid Encoding
A Thermostable Pyrophosphatase

 

U.S. Patent No. 5,674,738 -
Issued:  October 7, 1997

DNA Encoding Thermostable
Nucleic Acid Polymerase Enzyme From Thermus Species Z05

 

U.S. Patent No. 5,677,152 -
Issued:  October 14, 1997

Nucleic Acid Amplification
Using A Reversibly Inactivated Thermostable Enzyme

 

U.S. Patent No. 5,773,258 -
Issued:  June 30, 1998

Nucleic Acid Amplification
Using A Reversibly Inactivated Thermostable Enzyme

 

U.S. Patent No. 5,789,224 -
Issued:  August 4, 1998

Recombinant Expression Vectors
And Purification Methods For Thermus Thermophilus DNA Polymerase

 

U.S. Patent No. 5,795,762 -
Issued:  August 18, 1998

5’ To 3’ Exonuclease Mutations
Of Thermostable DNA Polymerase

 

U.S. Patent No. 5,939,292 -
Issued:  August 17, 1999

Thermostable DNA Polymerases
Having Reduced Discrimination Against Ribo-NTPs

 

U.S. Patent No. 5,968,799 -
Issued:  October 19, 1999

 

 

 

Purified Thermostable Nucleic
Acid Polymerase Enzyme From Thermosipho africanus

 

U.S. Patent No. 6,127,155 -
Issued:  October 3, 2000

Stabilized Thermostable Nucleic
Acid Polymerase Compositions Containing Non-Ionic Polymeric Detergents

 

U.S. Patent No. 6,228,628 -
Issued:  May 8, 2001

Mutant Chimeric DNA Polymerase

 

U.S. Patent No. 6,346,379 -
Issued:  February 12, 2002

Thermostable DNA Polymerases
Incorporating Nucleoside Triphosphates Labeled with Fluorescein Family Dyes

 

U.S. Patent No. 6,399,320 -
Issued:  June 4, 2002

Modified DNA-polymerase from Carboxydothermus
hydrogenoformans and its use for coupled reverse transcription and
polymerase chain reaction

 

SPECIFIC
PATHOGENS

 

[*  *  *]

 

Viral detection
in general:

 

U.S. Patent No. 5,176,995 -
Issued:  January 26, 1993

Detection of Viruses by
Amplification and Hybridization

 

HIV-related
patents:

 

U.S. Patent No. 5,008,182 -
Issued:  April 16, 1991

Detection of AIDS Associated
Virus by Polymerase Chain Reaction

 

U.S. Patent No. 5,386,022 -
Issued:  January 31, 1995

Primers and Probes for the
Amplification and Detection of AIDS Associated Nucleic Acids

 

U.S. Patent No. 5,594,123 -
Issued:  January 14, 1997

Primers and Probes for the
Amplification and Detection of AIDS Associated Nucleic Acids

 

U.S. Patent No. 5,599,662 -
Issued:  February 4, 1997

Improved Oligonucleotide
Primers and Probes for Detection of HIV-1

 

U.S. Patent No. 5,908,743 -
Issued:  June 1, 1999

GAG Gene Primers For Detection
Of HIV-1

 

 

 

HCV-related
patents:

 

U.S. Patent No. 5,527,669 -
Issued:  June 18, 1996

Methods, Primers and Probes for
Detection of Hepatitis C and Novel Variants

 

U.S. Patent No. 5,580,718 -
Issued:  December 3, 1996

Primers and Probes for
Detection of Hepatitis C and Novel Variants

 

U.S. Patent No. 5,837,442 -
Issued:  November 17, 1998

Oligonucleotide Primers For
Amplifying HCV Nucleic Acid

 

HPV-related
patents:

 

U.S. Patent No. 5,447,839 -
Issued:  September 5, 1995

Detection of Human
Papillomavirus by the Polymerase Chain Reaction

 

U.S. Patent No. 5,527,898 -
Issued:  June 18, 1996

Detection of Human
Papillomavirus by the Polymerase Chain Reaction

 

U.S. Patent No. 5,639,871 -
Issued:  June 17, 1997

Detection of Human
Papillomavirus

 

U.S. Patent No. 5,705,627 -
Issued:  January 6, 1998

Detection Of Human
Papillomavirus By The Polymerase Chain Reaction Using Specific L1, And E6
Probes

 

Mycobacteria-related
patents:

 

U.S. Patent No. 5,422,242 -
Issued:  June 6, 1995

Mycobacterium Primers and
Probes

 

U.S.
Patent No. 5,643,723 - Issued:  July 1,
1997

Detection
Of A Genetic Locus Encoding Resistance To Rifampin In Mycobacterial Cultures
And In Clinical Specimens

 

Miscellaneous
pathogens:

 

U.S. Patent No. 5,079,351 -
Issued:  January 7, 1992

Oligonucleotides and Kits for
Detection of HTLVI and HTLVII Viruses by Hybridization

 

U.S.
Patent No. 5,232,829 - Issued:  August
3, 1993

Detection
Of Chlamydia Trachomatis By Polymerase Chain Reaction Using Biotin Labelled DNA
Primers & Capture Probes

 

U.S. Patent No. 5,268,268 -
Issued:  December 7, 1993

Detection of HTLVI and HTLVII
Viruses by Hybridization

 

 

 

U.S. Patent No. 5,389,515 -
Issued:  February 14, 1995

Isolated Nucleotide Sequences
for Identifying Neisseria Gonorrhoeae

 

U.S. Patent No. 5,491,225 -
Issued:  February 13, 1996

PCR Primers for Detection of
Legionella Species and Methods for Controlling Visual Intensity in
Hybridization Assays

 

U.S. Patent No. 5,508,168 -
Issued:  April 16, 1996

Methods and Reagents for the
Detection of Herpes Simplex Virus, Treponema pallidum,

and Haemophilus ducreyi

 

U.S.
Patent No. 5,550,040 - Issued:  August
27, 1996

Method,
Reagents And Kits For The Detection Of Neisseria Gonorrhoeae

 

U.S. Patent No. 5,593,836 -
Issued:  January 14, 1997

Primers and Probes for
Detecting Pneumocystis Carinii

 

U.S. Patent No. 5,614,388 -
Issued:  March 25, 1997

PCR Primers for Detection of
Legionella Species and Methods for Controlling Visual Intensity in
Hybridization Assays

 

U.S.
Patent No. 5,620,847 - Issued:  April
15, 1997

Method
And Reagents For Detection Of Bacteria In Cerebrospinal Fluid

 

U.S.
Patent No. 5,635,348 - Issued:  June 3,
1997

Method
And Probes For Identifying Bacteria Found In Blood

 

U.S. Patent No. 5,912,117 -
Issued:  June 15, 1999

Method For Diagnosis Of Lyme
Disease

 

U.S. Patent No. 6,090,557 -
Issued:  July 18, 2000

Neisseria gonorrhoeae-Specific
Oligonucleotides

 

CANCER

 

[*  *  *]

 

U.S. Patent No. 5,057,410 -
Issued:  October 15, 1991 Chimeric
Messenger RNA Detection Methods

 

U.S. Patent No. 5,543,296 -
Issued:  August 6, 1996

Detection of Carcinoma
Metastases by Nucleic Acid Amplification

 

U.S. Patent No. 5,766,888 -
Issued:  June 16, 1998

 

 

 

Detection Of Carcinoma
Metastases By Nucleic Acid Amplification

 

HUMAN GENETICS
/ IDENTITY / TYPING

 

[*  *  *]

 

U.S. Patent No. 5,110,920 -
Issued:  May 5, 1992

HLA Typing Method and DNA
Probes Used Therein

 

U.S. Patent No. 5,310,893 -
Issued:  May 10, 1994

Method for HLA-DP Typing

 

U.S. Patent No. 5,451,512 -
Issued:  September 19, 1995

Methods and Reagents for HLA
Class I A Locus DNA Typing

 

U.S. Patent No. 5,464,945 -
Issued:  November 7, 1995

Oligonucleotide Probes Specific
for the Human Alpha Satellite Locus

 

U.S. Patent No. 5,550,039 -
Issued:  August 27, 1996

Oligonucleotide Primers for HLA
Class I B Locus DNA Typing

 

U.S. Patent No. 5,541,065 -
Issued:  July 30, 1996

Method for HLA DP Typing

 

U.S. Patent No. 5,567,809 -
Issued:  October 22, 1996

Methods and Reagents for HLA
DRBeta DNA Typing

 

U.S. Patent No. 5,643,724 -
Issued:  July 1, 1997

Methods and Reagents for
Glycophorin A Typing

 

U.S. Patent No. 5,648,482 -
Issued:  July 15, 1997

Primers Targeted To Cyp2d6 Gene
For Detecting Poor Metabolizers Of Drugs

 

U.S. Patent No. 5,665,548 -
Issued:  September 9, 1997

Characterization And Detection Of
Sequences Associated With Autoimmune Diseases

 

U.S. Patent No. 5,763,184 - Issued:  June 9, 1998

Nucleotide Sequence Variation
In The ABO Glycosyltransferase Gene

 

U.S. Patent No. 5,844,108 -
Issued:  December 1, 1998

Primers Targeted To NAT2 Gene For
Detection Of Poor Metabolizers Of Drugs

 

U.S. Patent No. 6,194,561 - Issued:  February 27, 2001

Characterization And Detection
Of Sequences Associated With Autoimmune Diseases

 

 

 

SAMPLE
PREPARATION

 

U.S.
Patent No. 4,946,952 - Issued:  August
7, 1990

Process
For Isolating Nucleic Acids

 

U.S. Patent
No. 5,063,162 - Issued:  November 5,
1991

Process
For Isolating Nucleic Acids Utilizing Protease Digestion

 

U.S.
Patent No. 5,501,963 - Issued:  March
26, 1996

Amplification
And Detection Of Nucleic Acids In Blood Samples

 

U.S.
Patent No. 6,403,786 - Issued:  June 11,
2002

Heterocyclic
Compounds And Their Use For Isolating Nucleic Acids

 

MISCELLANEOUS

 

U.S. Patent No. 5,451,505 -
Issued:  September 19, 1995

Methods for Tagging and Tracing
Materials With Nucleic Acids

 

 

 

EXHIBIT B

 

[***]

[***]

 

 

 

EXHIBIT C

 

AFFYMETRIX
DESIGNATION AND BRANDING GUIDELINES

 

[See attached]

 

 

 

 

Guidelines for
Affymetrix Co-Branding Logo and Tagline

Powered by
Affymetrix.  The Way Ahead.TM

 

The
following co-branding guidelines have been designed for licensees and partners
integrating or otherwise incorporating Affymetrix technologies into their
products.  These guidelines outline
proper usage of the Affymetrix trademark Powered by Affymetrix.  The Way Ahead.TM and related images in materials
including (but not limited to):

 

Print and broadcast advertising, collateral literature, promotional
materials, instructional tools, reference materials, and web sites, or for use
on products, labels, packaging, package inserts, user guides and product
manuals.

 

This
document is intended for use in conjunction with:

Principles and Elements of the Affymetrix Visual
Identity:  Corporate Style Guide.

(See accompanying
document.)

 

Following
these guidelines will help protect our valuable trademark rights and strengthen
our corporate and brand identities.  By
using an Affymetrix trademark, in whole or in part, you acknowledge that
Affymetrix has exclusive rights to the trademark and promise that you will not
interfere with Affymetrix’ rights in the trademark, including challenging
Affymetrix’ use, registration of, or application to register such trademark,
alone or in combination with other words, anywhere in the world, and that you
will use commercially reasonable efforts not to not harm, misuse, or bring into
disrepute any Affymetrix trademark.  The
goodwill derived from using any part of an Affymetrix trademark exclusively
inures to the benefit of and belongs to Affymetrix.  Except for the limited right to use as expressly permitted under
these guidelines, no other rights of any kind are granted hereunder, by
implication or otherwise.  If you have
questions regarding these guidelines, please talk to your Affymetrix
representative, or contact the Affymetrix Legal Department.

 

Authorized Use of Logo & Trademark:

“Powered by Affymetrix. The Way Ahead.TM”

 

Print Advertising

Print
advertising featuring products based on Affymetrix technologies should bear at
least one “Powered by Affymetrix” reference in the body copy.  In addition, the “Powered by Affymetrix. The
Way Ahead.TM” logo should appear at approximately half the size of the partner’s
logo and tagline (2:1 | 

 

 

 

Partner:Affymetrix)
(the “Approved Proportion”), and not less than 50 points in width.

 

                                         

 

Attributions
noting Affymetrix’ ownership of or exclusive rights to trademarks and logos are
required.  For example:

 

Affymetrix, the
Affymetrix logo, and “The Way Ahead.” are trademarks owned or used by
Affymetrix, Inc.

 

Broadcast Advertising

In
television or radio, please use the following guidelines based on length of
spot:

 

	
  10-second spots:

  	
  One mention at close of spot. 
  “Powered by Affymetrix.”

  	 

	
   

  	
  (About 1.5 seconds.)  No
  pre-approval required.

  	 

	
   

  	
   

  
	
  30-second spots:

  	
  One mention in main copy that could incorporate the phrase, “Powered
  by Affymetrix.”  (About 1.5 seconds.)

  
	
   

  	
  And one mention at the close of spot that reads, “Powered by
  Affymetrix.  The Way Ahead.”  (About 2.5 seconds.)

  
	
   

  	
  No pre-approval required.

  
	
   

  	
   

  
	
  60-second spots:

  	
  One sentence in main copy focused specifically on Affymetrix technology
  and incorporating the tagline, “Powered by Affymetrix.”  (About 5 seconds).

  
	
   

  	
  And one mention at the close of spot that reads, “Powered by
  Affymetrix.  The Way Ahead.”  (About 2.5 seconds.)

  
	
   

  	
  Review and/or collaboration requested prior to production;
  pre-approval is not required.

  

 

Collateral Materials

Similarly,
collateral materials including (but not limited to) product literature,
brochures, direct mail, posters, sales materials, programs, and presentations
(slide or PowerPoint) should bear at least one “Powered by Affymetrix”
reference in the body copy.  In
addition, the “Powered by Affymetrix. 
The Way Ahead.TM” logo should appear in the Approved Proportion to the
partner’s logo and tagline.  It may
appear on the last page, back panel, rear title slide, or in another position
where it is clearly noticeable by the reader/viewer.  However, you may use your discretion as to the location of the
logo on the page to bring balance or symmetry to the layout.

 

Again,
we require the following trademark attributions:

 

 

 

Affymetrix, the
Affymetrix logo, and “The Way Ahead.” are trademarks owned or used by
Affymetrix, Inc.

 

Web Sites

References
on company web sites need only bear the appropriate trademark symbols upon
first mention (e.g., if mentioned on the home page).  In instances where content jumps to sub-levels, however, the
appropriate trademark should be repeated upon first mention at each sub-level.

 

Products

On
products such as microarrays where label “real estate” or live area is at a
premium, partners are permitted to use the tagline only.  However, we strongly recommend partners
collaborate with Affymetrix on solutions in these cases.

 

The
Roche AmpliChipTM cartridge label, for example, demonstrates an instance in
which the company logo and product name (Roche AmpliChipTM) should take
precedence over the “Powered by Affymetrix. 
The Way Ahead.TM” logo, since it’s physically impossible to feature both
logos on a single array.  Consequently,
it is acceptable to Affymetrix to feature only the text version of the
signature on one or two lines on the cartridge label, printing specifications
permitting.  And if during the layout
stage the partners feel two lines unduly clutter the cartridge label, they may
opt to feature the “Powered by Affymetrix” line only.

 

                Examples: 
             Powered by Affymetrix.

                                                The Way Ahead.TM

 

                                                Powered by Affymetrix.

 

Packaging

Array,
reagent, software, and instrumentation packaging, however, should bear the
entire logo treatment.  The logo should
appear in the Approved Proportion to the partner’s logo and tagline, and not
less than 50 points in width.  Ideally,
the logo will appear on the main panel (front or top view facing the reader),
and on at least one side panel (right or left).

 

Package Inserts

Since
package inserts contain in-depth technical and/or product-related information,
it will suffice to mention that a product incorporates (or is powered by) an
Affymetrix technology.  However, as with
all other collateral materials, the logo should appear in the Approved
Proportion to the partner’s logo and tagline. 
Again, the logo may appear no less than 50 points in width to ensure
embedded text remains readable.

Similarly,
we require the following trademark attributions:

 

Affymetrix, the
Affymetrix logo, and “The Way Ahead.” are trademarks owned or used by
Affymetrix, Inc.

 

User Guides, Product
Manuals, & Quick Reference Cards

 

 

 

As
with other collateral materials, documents that accompany or support products
including (but not limited to) user guides, product manuals, and quick
reference cards should bear at least one “Powered by Affymetrix” reference in
the body copy.  In addition, the
“Powered by Affymetrix.  The Way
Ahead.TM” logo should appear in the Approved Proportion to the partner’s logo and
tagline.  It may appear on the last
inside page, back cover, or in another position where it is clearly noticeable
by the reader/viewer.  However, you may
use your discretion as to the location of the logo and taglines on the page to
bring balance or symmetry to the layout.

 

Again,
we require the following trademark attributions:

 

Affymetrix, the
Affymetrix logo, and “The Way Ahead.” are trademarks owned or used by
Affymetrix, Inc.

 

Additional Guidelines for Partners

 

Compatibility

Partners
may use “Affymetrix” as a reference  in promotional materials to
indicate that third-party products are compatible with a referenced Affymetrix
product or technology, provided they comply with the following requirements.

a. The
Affymetrix name is not part of the third-party product name.

b. The
Affymetrix name is used in a referential phrase such as “runs on,” “for use
with,” “for,” or “compatible with.”

c. The
Affymetrix name appears less prominent than the product name.

d. The
product is in fact compatible with, or otherwise works with, the referenced
Affymetrix product.

e. The
reference to Affymetrix does not create a sense of endorsement, sponsorship, or
false association with Affymetrix, Affymetrix products, or services.

f. The use
does not show Affymetrix or its products in a false or derogatory light.

Unauthorized
Use of Affymetrix Trademarks

Company, Product, or Service Name

may not use or register, in whole or in part, Affymetrix®, GeneChip®, or any other Affymetrix trademark, including Affymetrix-owned graphic
symbols, logos, icons, or an alteration thereof, as or as part of a company
name, trade name, product name, or service name except as specifically noted in
these guidelines.

Affymetrix Logo and Affymetrix-owned Graphic Symbols          
You may not
use the Affymetrix logo or any other Affymetrix-owned graphic symbol, logo, or
icon on or in connection with web sites, products, packaging, manuals,
promotional/advertising materials, or for any other purpose except

 

 

 

pursuant to
an express written trademark license from Affymetrix, such as a partner
agreement.

Further,
white space equivalent to the x-height of the body must surround the logo on
all four sides as shown below:

Variations, Takeoffs or Abbreviations            
You may not
use a real Affymetrix logo or other variation of the Affymetrix logo for any
purpose. Third parties cannot use a variation, phonetic equivalent, foreign
language equivalent, takeoff, or abbreviation of an Affymetrix trademark for
any purpose. For example:

Not acceptable:  Affy     genechip

For
acceptable usage, partners may refer to the Affymetrix web site for
guidance:  http://www.affymetrix.com/corporate/media/guidelines.affx.

Disparaging Manner
You may not
use an Affymetrix trademark or any other Affymetrix-owned graphic symbol, logo,
or icon in a disparaging manner.

Endorsement or Sponsorship
You may not
use Affymetrix®, GeneChip®, or any other Affymetrix trademark,
including Affymetrix-owned graphic symbols/logos, or icons, in a manner that
would imply Affymetrix’ affiliation with or endorsement, sponsorship, or
support of a third-party product or service.

Merchandise Items
You may not
manufacture, sell, or give away merchandise items, such as pens and notebooks,
bearing Affymetrix®, GeneChip®, or any other Affymetrix trademark,
including symbols, logos, or icons, except pursuant to an express written
trademark license from Affymetrix.

Affymetrix’ Trade Dress
You may not
imitate the distinctive Affymetrix packaging, web site design, logos, or
typefaces.

 

 

 

Slogans and Taglines
You may not
use or imitate an Affymetrix slogan or tagline as your own.

	
  Examples:

  	
   

  	
  “Tools to
  take you as far as your vision.TM”

  
	
   

  	
   

  	
  “The Way
  Ahead.TM”

  

Domain Names
You may not
use an identical or virtually identical Affymetrix trademark as a second-level
domain name.

Not acceptable:   “affymetrix.com”    
“GeneChip.com”

The GeneChip® Trademark

You may not use the
GeneChip trademark alone, except to denote or refer to the Affymetrix GeneChip® brand product line.EXHIBIT 10.59

 

Confidential
Treatment has been requested for portions of this
exhibit. This 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.

 

 

 

 

 

Affymetrix
Instrument and Chip Supply Agreement

 

F. Hoffmann-La Roche Ltd.

and

Affymetrix, Inc.

 

dated

 

January 29, 2003

 

 

 

TABLE OF CONTENTS

 

	
  I.

  	
  Introduction

  
	
   

  	
   

  
	
  II.

  	
  Common Terms and
  Definitions.

  
	
   

  	
   

  
	
  III.

  	
  Chip and
  Affymetrix Instrument Supply

  
	
   

  	
   

  
	
  IV.

  	
  Custom Array Development

  
	
   

  	
   

  
	
  V.

  	
  Proprietary Rights

  
	
   

  	
   

  
	
  VI.

  	
  Compensation

  
	
   

  	
   

  
	
  VII.

  	
  Manufacturing
  Process Change.

  
	
   

  	
   

  
	
  VIII.

  	
  Technical
  Support and Product Service

  
	
   

  	
   

  
	
  IX.

  	
  Intellectual
  Property Ownership

  
	
   

  	
   

  
	
  X.

  	
  Warranty

  
	
   

  	
   

  
	
  XI.

  	
  Limited Liability

  
	
   

  	
   

  
	
  XII.

  	
  Indemnity

  
	
   

  	
   

  
	
  XIII.

  	
  Term and Termination

  
	
   

  	
   

  
	
  XIV.

  	
  Miscellaneous.

  

 

	
  Annex 1:

  	
  Current Form of Customer Service Provider
  Addendum

  
	
   

  	
   

  
	
  Annex 2:

  	
  Current Affymetrix Instrument Service Level
  Packages

  
	
   

  	
   

  
	
  Annex 3:

  	
  Software Maintenance Terms and Conditions

  
	
   

  	
   

  
	
   

  	
   

  
	
  Exhibit A:

  	
  Affymetrix Instrument Pricing Schedule

  
	
   

  	
   

  
	
  Exhibit B:

  	
  Catalog Chip and Custom Array Pricing
  Schedule

  

 

 

 

 

AFFYMETRIX INSTRUMENT AND CHIP SUPPLY
AGREEMENT

 

January 29, 2003

This
AFFYMETRIX INSTRUMENT AND CHIP SUPPLY AGREEMENT (“Agreement”) is
effective as of the date first written above (“Effective Date”) between
Affymetrix, Inc., a Delaware corporation (“Affymetrix”), and F.
Hoffmann-La Roche Ltd. ( “Roche”).

I.              Introduction.

(a)           Affymetrix has research, development
and manufacturing capabilities and facilities, and has developed certain rights
relevant to DNA probe array-based technology.

(b)           Roche has research, development and
manufacturing capabilities required for the development and commercialization
of diagnostic products utilizing DNA probe array-based technology.

(c)           As part of the Collaboration,
Affymetrix and Roche desire to enter into an agreement whereby Affymetrix will
supply Roche with DNA probe arrays, instruments related thereto and other
products related to the foregoing for use in or with Diagnostic Products
developed by the Parties pursuant to the Collaboration.

(d)           In consideration of the mutual
covenants and promises contained in this Agreement, Affymetrix and Roche agree
as follows:

II.            Common Terms and
Definitions.

 

(a)           Common Terms.

(i)            Unless otherwise defined herein, all
capitalized terms shall have the meanings set forth in the Common Terms
Agreement, dated as of even date herewith, between Affymetrix and Roche (the “Common
Terms Agreement”).

(ii)           This Agreement shall be governed by
and subject to the provisions contained in the Common Terms Agreement, in
accordance with its terms.

(b)           Definitions.

(i)            “Affymetrix Instrument Pricing
Schedule” shall have the meaning set forth in Section III(g)(i).

(ii)           “Affymetrix Instrument Service Level
Packages” shall have the meaning set forth in Section III(i).

(iii)          “Affymetrix Service Levels” shall have
the meaning set forth in Section VIII(a).

(iv)          “Chip Improvement Inventions” shall
mean all inventions that are conceived or first reduced to practice by an
employee or contractor of a Party or its 

 

1

 

Affiliates
resulting from design or use of the Arrays supplied hereunder which relate to
probe Array manufacturing techniques, probe Array layouts, probe Array
packaging techniques, probe Array assay techniques (but only insofar as such
assay techniques relate to processes that occur following nucleic acid
extraction and are directly related to Arrays of nucleic acid probes), and
probe Array software analysis techniques relating to the creation of genetic
information such as but not limited to genotypes, sequences, base calls and
qualitative or quantitative expression levels. 
Chip Improvement Inventions shall not include analytic software which
takes such genetic information discussed in the preceding sentence and from
such information derives predictions, prognoses, diagnoses, treatment
recommendations, or related information or is specific to particular Content.
It is hereby understood that inventions made independently of design or use of
Arrays (such as those inventions made in the course of design or use of Roche’s
proprietary technologies or other non-Affymetrix technologies) are not Chip
Improvement Inventions within the meaning of this Agreement. Chip Improvement
Inventions shall further not include any other inventions that are conceived of
or reduced to practice by an employee or contractor of a Party or its
Affiliates including, for example, expression data or discoveries resulting
therefrom, targets identified through the use of the Arrays, or correlations
between genetic sequences and function.

(v)           “Content Chips” shall have the
meaning set forth in Section III(a)(iii).

(vi)          “Fully Loaded Cost Plus Basis” shall
mean, for a particular Catalog Chip or Custom Array, as the case may be, the
sum of (i) [***] and (ii) the [***].

(vii)         “[***] Transfer Prices” shall have the
meaning given to such term on Exhibit B hereto.

(viii)        “Initial Design Fee” shall
have the meaning set forth in Section VI(a).

(ix)           “Manufacturing Facility Fee” shall
mean the amount specified in the Development Plan for a Diagnostic Product that
Affymetrix may need to build, staff, and otherwise prepare a manufacturing
facility for the production of Arrays for a Diagnostic Product.

(x)            “Projected Base Markup” shall mean
the product of (i) [***] multiplied by (ii) the [***].

(xi)           “Projected Fully Loaded Cost” shall
mean the [***].

(xii)          “Projected Fully Loaded Cost Plus Basis”
shall mean, for a particular Array, as the case may be, the sum of (i) [***] and (ii)
the [***].

(xiii)         “Projected Markup Percentage” shall mean
the percentage mark up over [***] embedded in the [***] as set forth in the
Supply Agreement as of the Effective Date, which percentage [***] the
Collaboration.

 

2

 

(xiv)        “Return
Materials Authorization” shall have the meaning set forth in Section VI(d).

(xv)         “Services” shall mean technical support
and product service (including support for adaptation for diagnostic uses).

(xvi)        “Specification” shall mean written design
and/or manufacturing specifications for a particular Array or Diagnostic
Product incorporating an Array, as applicable, either set forth in the
Development Plan as then in effect or as provided by Roche to Affymetrix.

III.           Chip and Affymetrix Instrument
Supply.

(a)           Chip Supply.  Beginning on the Effective Date, Affymetrix
agrees to deliver Chips to Roche, in accordance with and subject to the terms
of this Agreement, as follows:

(i)            for Roche’s use as components of
Diagnostic Products (“Component Chips”);

(ii)           for Roche’s use in connection with
its own development of Diagnostic Products (“Development Chips”);

(iii)          in a quantity limited to an aggregate
number of Chips of up to [***] such Chips per [***] through [***], for Roche’s
use exclusively to develop Content for Diagnostic Products (“Content Chips”);
provided that Roche shall, for
each Content development program, notify Affymetrix of the Content intended to
be developed and its expected application; and

(iv)          in the event Roche needs additional
Chips for Content discovery, Roche may propose to Affymetrix specific content discovery
programs and Affymetrix will consider extending the right to purchase Content
Chips, specifically considering that such past and further use does not erode
or otherwise compromise Affymetrix’ research supply business with its
customers.

(b)           Physical Defects.  Affymetrix will promptly replace any Chips
that have Physical Defects [***] Roche; provided Roche gives notice to
Affymetrix and returns such Chips within the Chips’ remaining shelf life and
otherwise in accordance with the procedures in Section VI(d)
hereof.  If such Component Chip has
already been incorporated into a Diagnostic Product that has been shipped to a
Customer, then to the extent that Diagnostic Products can be salvaged on a
commercial basis, Affymetrix will pay the [***], and to the extent the
components of that Diagnostic Product cannot be salvaged, Affymetrix will
reimburse Roche for Roche’s [***] in which such Component Chip was included.

(c)           Forecasts.  On at least a quarterly basis, Roche will
provide a reasonable, good faith forecast of Custom Arrays and Catalog Chips to
be supplied by Affymetrix (such forecasts to be supplied with the Affymetrix
part number, if any).  The forecasts
shall indicate, with respect to each part number (or Chip design in the absence
of part number), whether those

 

3

 

Chips are to be used as
Component Chips, Development Chips or Content Chips, and will provide a [***]-quarter
rolling projection of
product demand; provided that (i)
the next quarter
in such forecast shall constitute a firm commitment obligating Roche to issue
purchase orders for delivery of at least [***]% of the next quarter forecast quantities (100% of such next
quarter forecast quantities, the “Firm Commitment”) of each type of Chip
(by part number, if any) set forth therein in such quarter, and (ii) the
subsequent quarters of such forecast will be for capacity planning purposes
only, and shall not constitute a firm commitment to issue any purchase orders.  The forecast will be provided according to a
mechanism and on forms to be agreed upon in good faith by the Parties.
Affymetrix shall supply at least [***]% of the Firm Commitment and will use
commercially reasonable efforts to supply [***]% of the Firm Commitment of
Chips in any forecast period and to meet the time specified in any purchase
order in any forecast period; provided,
that manufacture will be firmly scheduled and specific delivery times will be
confirmed by Affymetrix only after receipt of the purchase order specific to those
Chips to be delivered.  After the
initial forecast, if the aggregate number of ordered Chips of a particular type
forecast for a quarter increases by more than [***]% from the forecast provided
for the previous quarter, then [***]% of the number of such Chips above the
[***]% increase shall be supplied in a reasonable time after the initial
delivery time projection, but shall not be subject to breach on account of late
supply thereof, unless Affymetrix has given its prior consent to supply such
Chips.

(d)           Use and Transfer of Chips and Data
Therefrom.

(i)            Roche may not: (A) transfer the
Chips to Third Parties, except Component Chips as components of a Diagnostic
Product and pursuant to the License Agreement; (B) purposefully use any Chip,
or data generated by any Chip supplied pursuant to this Agreement or any
Database to develop or discover Content (other than Content Chips); (C) reverse
engineer Chips delivered hereunder; (D) reuse any individual Chip; (E) use
Chips or Sell Chips for use in diagnostic or other settings requiring FDA or
other regulatory agency approval unless Roche obtains such approval; or (F) use
Chips or sell such Chips for use in any manner that is inconsistent with any
legal or regulatory requirement.  Roche
understands that neither the Chips nor the Affymetrix Instruments have received
FDA or other regulatory agency approval as supplied under this Agreement.

(ii)           Unless otherwise expressly permitted
by any Collaboration Agreement, Roche shall not sell, distribute or otherwise
transfer to Third Parties any data or Database derived from any Arrays supplied
pursuant to this Agreement, except in connection with a Diagnostic Product, provided that Roche shall not sell,
distribute or transfer on a commercial basis a standalone Database.

(e)           Packing and Shipping.  Arrays will be packed in Affymetrix’
standard shipping packages and shipped to the address specified by Roche in
accordance with quality assurance and packaging procedures determined by
Affymetrix from time to time.  If a
particular Custom Array requires any packaging, process or procedure other than
those Affymetrix utilizes for its Catalog Chips, then upon the reasonable
request of Roche, Affymetrix shall perform such packaging, processes or
procedures at an additional charge on a [***]. 
Roche agrees to provide to Affymetrix, [***], the training, Technology,
know-how, equipment and Intellectual Property 

 

4

 

licenses required to
perform such packaging, processes and procedures requested by Roche that are
different than those Affymetrix utilizes for its Catalog Chips.

Deliveries of Arrays will
be F.O.B. Affymetrix’ facility or the facility of its sales representative.
Affymetrix will ship via a carrier selected by Roche or, if none is specified
by Roche, Affymetrix will select the carrier. Title and risk of loss or damage
for deliveries will pass to Roche upon Affymetrix’ actual delivery of the
Arrays to the carrier for shipment to Roche. 
Roche will pay all shipping costs, duties and sales taxes.  Roche will advise Affymetrix in writing if
insurance is desired on any shipments of Arrays, and will reimburse Affymetrix
for all such insurance charges.

(f)            Genetic Information.  Affymetrix will endeavor to provide Roche
with sufficient genetic information to identify the Genes on each Catalog Chip
provided, if any.  If Affymetrix updates
its information about any Catalog Chips to include additional or different
genetic sequence information relevant to the development of Diagnostic
Products, Affymetrix will endeavor to provide such information to Roche.

(g)           Affymetrix Instruments.

(i)            Affymetrix Instrument Purchases
by Roche for Diagnostic Product Development.  Affymetrix agrees to supply Roche and its Affiliates with
Affymetrix Instruments for use with Arrays for use in the development of
Diagnostic Products in accordance with the Collaboration Agreements.  Such Affymetrix Instruments shall be
purchased pursuant to purchase orders provided to Affymetrix at the prices and
on terms and conditions set forth on the Affymetrix Instrument Pricing Schedule
(the “Affymetrix Instrument Pricing Schedule”) attached hereto as Exhibit
A, and Affymetrix will fill such orders with not less than the priority
afforded any other purchaser.  Roche
shall have the option to [***] hereunder for [***] Affymetrix [***] Affymetrix’
[***] then in effect.  Roche shall have
no right to sell, distribute or otherwise transfer any Affymetrix Instrument
supplied under this Agreement except to its Affiliates exclusively for use in
the development of Diagnostic Products or in subsection (ii) below.

(ii)           Affymetrix Instrument Purchases
for Reagent Agreement Plans. 
Affymetrix agrees to supply Roche and its Affiliates with Affymetrix
Instruments for use with Diagnostic Products that are sold pursuant to a
Reagent Agreement Plan.  Such Affymetrix
Instruments shall be purchased pursuant to purchase orders provided to
Affymetrix at the prices and on terms and conditions set forth on the
Affymetrix Instrument Pricing Schedule attached hereto as Exhibit A, and
Affymetrix will fill such orders with not less than the priority afforded any
other purchaser.  Roche shall have no
right to sell, distribute or otherwise transfer any Affymetrix Instrument
supplied under this Section, except to its Affiliates exclusively for use in a
Reagent Agreement Plan.

(iii)          Affymetrix Instrument Purchases by
Customers of Roche.  Other than as
set forth in Section III(g)(ii) above, Affymetrix agrees to supply Roche
Customers of Diagnostic Products with Affymetrix Instruments for use with
Diagnostic Products that are sold pursuant to the Collaboration Agreements,
provided that such Customers are located and taking delivery in an Affymetrix
Territory.  Such Affymetrix Instruments 

 

5

 

shall be purchased
pursuant to purchase orders provided by the Customer to Affymetrix at
Affymetrix’ then current prices and terms and conditions, and Affymetrix will
fill such orders with not less than the priority afforded any other purchaser.  Affymetrix Instrument purchases by Customers
who are located or taking delivery in an Unserved Territory shall be governed
by the terms of the Agency Agreement.

(iv)          Affymetrix Instrument Packaging and
Shipping.  Affymetrix Instruments
purchased by Roche or its Affiliate will be packed in Affymetrix’ standard
shipping packages and shipped to the address specified by Roche or its
Affiliate in accordance with quality assurance and packaging procedures
determined by the Parties from time to time. 
Deliveries will be F.O.B. Affymetrix’ facility or the facility of its
sales representative. Affymetrix will ship via a carrier selected by Roche or
its Affiliate or, if none is specified by Roche or its Affiliate, Affymetrix
will select the carrier. Title and risk of loss or damage for deliveries will
pass to Roche or its Affiliate upon Affymetrix’ actual delivery of the
Affymetrix Instruments to the carrier for shipment to Roche or its
Affiliate.  Roche or its Affiliate will
pay all shipping costs, duties and sales taxes.  Roche or its Affiliate will advise Affymetrix in writing if
insurance is desired on any shipments of Affymetrix Instruments, and will
reimburse Affymetrix for all such insurance charges.

(h)           Terms of Service.

(i)            Any service provided by Affymetrix
on Affymetrix Instruments shall be governed by Affymetrix’ then-current forms
of Customer Service Provider Addendum and 
Current Affymetrix Instrument Service Level Packages, the current forms
of which are attached hereto as Annexes 1 and 2 (the “Affymetrix
Instrument Service Level Packages”); and

(ii)           Notwithstanding anything to the
contrary in this Agreement, Annex 3 hereto, or such amended version as
may be reasonably adopted from time to time, shall govern the terms of all
Software maintenance and upgrades. 

IV.           Custom Array Development.

(a)           Product Specifications. In
addition to the terms of Section III above, with respect to each Custom
Array required for a Diagnostic Product, Roche shall supply Specifications for
such Custom Array along with an initial supply forecast for the Diagnostic
Product incorporating such Custom Array. 
Without limitation, Affymetrix acknowledges and agrees that the
Specifications constitute Roche Technology (to the extent the technology
contained in the Specifications does not constitute the Intellectual Property
of Affymetrix or a Third Party).

(b)           Shelf Life of Arrays. Each
Custom Array shall have a shelf life of at least [***] after the Array has been
shipped by Affymetrix to Roche. 
Affymetrix shall use commercially reasonable efforts to increase shelf
life and to use appropriate shipping methods to preserve shelf life.

 

6

 

(c)           Affymetrix Development Obligations.
In addition to the terms of Section III above, for each Custom Array for
which Affymetrix receives Specifications, Affymetrix will use reasonable
commercial efforts to undertake and complete non-clinical development of the
applicable Custom Array according to the Specifications, including
manufacturing scale-up.  Affymetrix
shall also prepare and provide Roche with non-clinical development information
for each applicable Custom Array, each as required by the applicable
Development Plan.

V.            Proprietary Rights.

Other than as agreed by the Parties pursuant to the Collaboration,
Roche shall not buy arrays of diverse nucleic acids on solid supports from a
Third Party if such arrays materially infringe or would materially infringe the
patent or copyright rights of Affymetrix or its Affiliates.  Roche and Affymetrix will notify each other
of: (i) any potential infringement of any of Affymetrix’ Intellectual Property
(i.e., Affymetrix Technology) of which that Party becomes aware; (ii) any
potential infringement by any Third Party of any of the Affymetrix Intellectual
Property incorporated in, embodied by or relied upon to manufacture a
Diagnostic Product; or (iii) any potential infringement by a Diagnostic Product
of any Content or Intellectual Property owned or asserted to be owned by a
Third Party of which that Party becomes aware. 
All notifications under this Section V shall be treated as
Confidential Information and shall not be disclosed to the alleged infringer or
any other party.

VI.           Compensation.

(a)           Initial Design Fees. With
respect to the Specifications for each Custom Array Roche provides to
Affymetrix, Roche shall pay Affymetrix a design fee equal to [***] of the
design of such Custom Array [***] thereon for each Custom Array set design that
Affymetrix would need to create to implement the Development Plan for such
Diagnostic Product (the “Initial Design Fee”). Roche will pay such
Initial Design Fee upon delivery of the Specifications, including the complete
target sequence for each mask set design.

(b)           Pricing of Chips, Affymetrix
Instrumentation and Custom Arrays.

(i)            Custom Arrays and Catalog Chips.

(a)           Array Pricing.
Affymetrix shall sell all Chips supplied to Roche under this Agreement [***]
other than Chips in [***] per year for Content Development in the first [***]
years of this Agreement in [***] Arrays (or an equivalent) pursuant to Section
III(c.  To set a baseline for the
[***] and to provide [***] transfer prices, Exhibit B hereto contains a
schedule of the [***] Transfer Prices for Chips (the [***] price that
Affymetrix will charge for Component Chips and Development Chips sold to Roche)
produced in the format, with the number of features, for the particular year
and with packaging [***], as set forth therein.  For Component Chips and Development Chips, the purchase price
will be subject to the [***] Transfer Price. 
Although the Parties agree that [***] of a Chip may differ depending on
a variety of cost factors, including, but not limited to, wafer size, number of
features on the Chip, and manufacturing and packaging costs, Affymetrix agrees
that [***], as set forth on Exhibit B, shall be [***] during the term of
this Agreement and shall be subject to Roche’s audit in accordance with Section
VI(e) below.  Affymetrix shall
determine the amount of any [***] of a 

 

7

 

Chip versus the projected [***] of such Chip on a quarterly basis
within 45 days of each quarter.  To the
extent such [***] exceeds [***]% for that quarter, (i) in the case of an [***],
Roche will be credited the amount of the [***] in the next quarter following
the [***], and (ii) in the case of an [***], Affymetrix will be credited the
amount of the [***] in the next quarter following the [***].  Pricing for [***] purchased pursuant to Section
III(a)(iv) will be at prices equal to Affymetrix’ [***] price of [***],
which is [***] each.

(b)           Price [***].  The Array pricing set forth on Exhibit B
is based on technological improvements Affymetrix expects to make over
time.  Affymetrix agrees to [***] for
Arrays purchased by Roche pursuant to this Agreement as described on Exhibit
B, [***].

(c)           Technology
Reinvestment Covenant.  In addition,
Affymetrix agrees to invest at least [***] of the [***] in the Affymetrix
Technology and broad-based applications research.

(ii)           Affymetrix Instrumentation.
Pricing shall be subject to Section III(g).

(c)           Manufacturing Facilities Fee.  Upon adoption of each Development Plan (or
as agreed between the Parties in advance if there is no Development Plan for a
Diagnostic Product), Roche shall pay Affymetrix the Manufacturing Facility Fee,
if any, specified in such Development Plan. Affymetrix shall make available to
Roche the records specifically showing how each Manufacturing Facility Fee was
spent on a product-by-product basis. If circumstances result in an underage or
an overage in connection with a Manufacturing Facility Fee paid to Affymetrix,
the Joint Research Management Committee shall resolve, in good faith,
adjustment of the Manufacturing Facility Fee and the impact on the
corresponding Diagnostic Product and Development Plan and on each Party’s
respective Manufacturing Cost. The Parties acknowledge that Affymetrix, at its
sole discretion, may apply the Manufacturing Facility Fee to the fabrication or
establishment of new facilities, or to the renovation of, addition of new lines
to, or other modification or extension of existing facilities.

(d)           Acceptance; Payment Terms.  All amounts referred to in this Section
VI will be invoiced by Affymetrix when due.  All Arrays will be deemed accepted unless they are returned to
Affymetrix within [***] days of delivery to Roche, with a written explanation
of the basis on which such Arrays have been returned on Affymetrix’ standard “Return
Materials Authorization” according to the procedures provided for in such
Return Materials Authorization.  All
payments will be made to Affymetrix [***] days from the acceptance by Roche,
but no more than [***] days after delivery. 
Late payments shall bear interest at the lower of: (i) the Bank of
America prime or (ii) the maximum rate allowed by law.  All payments in this Agreement will be made
in the form of a check or wire transfer to Affymetrix in U.S. Dollars.  Acceptance of Arrays by Roche shall have no
effect on the provisions set forth in Section X (Warranty) and Section
XII (Indemnity) of this Agreement.

(e)           Records and Audit Rights.
Affymetrix shall keep complete and accurate records reflecting all information
necessary or useful in verifying the accuracy of each invoice and the
determination of the [***] for any Arrays supplied to Roche or its Affiliates
hereunder 

 

8

 

and the difference
between the [***] and the [***] for any such Arrays. Roche shall have the right
to hire an independent certified public accountant to inspect all records
required to be kept by Affymetrix pursuant to this Agreement (which accountant
shall be reasonably acceptable to Affymetrix and shall keep all information
confidential except to disclose the fact and amount of any discrepancies), provided, such audit: (i) is conducted
during normal business hours, (ii) is conducted no more often then once per
year, (iii) is conducted only after Roche has given Affymetrix at least thirty
(30) days’ prior written notice, and (iv) Affymetrix has the ability to review
the accountant’s report on discrepancies to confirm the report does not contain
any other Confidential Information. Affymetrix shall, at its own expense, make
such records (or copies thereof) available to the accountant at a single
location in the U.S. Roche shall bear the full cost and expense of such audit,
unless the actual amount determined in such review to be payable by Roche is
more than [***]% lower than the amount charged to Roche by Affymetrix, in which
event Affymetrix shall bear the full cost and expense of such audit. Regardless
of the amount of discrepancy discovered, all discrepancies (and interest
thereon at the rate set forth in Section VI(d) above) shall be due and
payable within 30 days of the discovery of the discrepancy.

VII.          Manufacturing Process Change.  

                                (a)              Affymetrix shall, prior to implementing any
manufacturing or packaging change to an Array utilized in a Diagnostic Product
or an Affymetrix Instrument used or to be used in connection with a Diagnostic
Product, in each case, for which the Manufacturing Lockup Point has occurred,
provide written notice of any proposed manufacturing or packaging change to the
Head of Regulatory Affairs of Roche Molecular Systems to the extent such change
could (i) reasonably be seen to have a regulatory impact on the Diagnostic
Product or its distribution, or (ii) otherwise be material.  Such notice shall include details of the
planned manufacturing or packaging change to allow Roche to consider the impact
of such change on the safety, efficacy or regulatory requirements for such
Diagnostic Product.  Affymetrix will not
undertake such proposed change without the prior written consent of Roche,
which consent shall be provided within 20 business days after receipt of such
notice from Affymetrix.

                                (b)           In addition to the
foregoing, Affymetrix agrees to use commercially reasonable efforts to notify
Roche in advance in writing of every manufacturing or packaging change not
falling within subsection (a)(i) or (ii) above with respect to Arrays or
Affymetrix Instruments utilized in or for a Diagnostic Product for which the
Manufacturing Lockup Point has occurred. 
Affymetrix shall certify to Roche in such notice that Affymetrix
reasonably believes that the change specified in any such notice could not
reasonably be expected to have an adverse regulatory impact on the Diagnostic
Product, the relevant Affymetrix Instrument or its components.

VIII.        Technical Support and Product Service.

(a)           Support and Service.  Affymetrix shall offer Services for
purchasers of Affymetrix Instruments supplied under this Agreement on terms of
Affymetrix’ standard Affymetrix Instrument Service Agreement attached as Annex
1 hereto (which may be reasonably modified by Affymetrix from time to time)
and at Roche’s specified service level (which current service levels are listed
on Annex 2 hereto (which may be reasonably modified by Affymetrix from
time to time), the “Affymetrix Service Levels”) at the election of
Roche.  Fees for each 

9

 

Affymetrix Service Level
shall be determined from time-to-time by Affymetrix and quoted to the end-user
of an Affymetrix Instrument at the time of sale of such product.

(b)           Support and Service for Software.  Affymetrix shall offer maintenance and
upgrades for Software for all end-users of Affymetrix Instruments (including
Roche and its Affiliates) in accordance with and on the terms and conditions of
its standard Software Maintenance Agreement attached as Annex 3 hereto
(which may be reasonably modified by Affymetrix from time to time).

IX.           Intellectual
Property Ownership.

Any inventions made
during the course of and as part of this Agreement shall be owned as set forth
in Section V of the Common Terms Agreement.  In addition, Roche and its Affiliates agree to assign to
Affymetrix at Affymetrix’ cost all Chip Improvement Inventions.  Each Party agrees to provide periodic
written reports to the other Party identifying inventions, technological
improvements and developments assignable to the other Party under Section V
of the Common Terms Agreement relating to probe array technology.

X.            Warranty.

(a)           Affymetrix warrants only to Roche
that the Custom Arrays, during the shelf life marked on such Custom Arrays,
will conform to the applicable Specifications (which shall include appropriate
agreed-upon tolerance levels) and is otherwise free of Physical Defects, and
that the Catalog Chips, Affymetrix Instruments, and related software will
conform in all material respects to Affymetrix’ then-current standard customer
warranty included in Affymetrix’ applicable customer sales agreement. The
foregoing warranties do not apply to Arrays, Affymetrix Instruments, or
software that have been mishandled, mistreated or used or maintained or stored
other than in conformity with Affymetrix’ instructions. ROCHE’S SOLE AND
EXCLUSIVE REMEDY FOR ANY BREACH OF THE FOREGOING WARRANTIES SHALL BE THOSE SET
FORTH IN SECTIONS III(b), XII(a) AND XII(b) OF THIS
AGREEMENT.

(b)           EXCEPT AS EXPRESSLY SET FORTH IN THIS
AGREEMENT, AFFYMETRIX DOES NOT WARRANT THE MERCHANTABILITY OR FITNESS FOR A
PARTICULAR PURPOSE OF THE ARRAYS, INSTRUMENTS, RELATED SOFTWARE OR DIAGNOSTIC
PRODUCTS OR PERFORMANCE OR NON-INFRINGEMENT THEREOF, DOES NOT MAKE ANY
WARRANTY, EXPRESS, IMPLIED OR OTHERWISE, WITH RESPECT TO ARRAYS, INSTRUMENTS,
RELATED SOFTWARE OR DIAGNOSTIC PRODUCTS, SPECIFICATIONS, SUPPORT, SERVICE OR
ANYTHING ELSE, AND DOES NOT MAKE ANY WARRANTY OF ANY KIND TO ROCHE CUSTOMERS OR
ROCHE’S AGENTS. AFFYMETRIX HAS NOT AUTHORIZED ANYONE TO MAKE ANY REPRESENTATION
OR WARRANTY OTHER THAN AS PROVIDED ABOVE.

XI.           Limited Liability.

EXCEPT IN CONNECTION WITH SECTION II (CONFIDENTIALITY) OF THE
COMMON TERMS AGREEMENT OR AMOUNTS PAYABLE UNDER SECTION X (WARRANTY) OR SECTION
XII (INDEMNITY) OF THIS AGREEMENT, NEITHER PARTY WILL BE LIABLE WITH
RESPECT TO ANY SUBJECT MATTER OF THIS AGREEMENT UNDER 

 

10

 

ANY CONTRACT, NEGLIGENCE, STRICT LIABILITY, OR OTHER LEGAL OR EQUITABLE
THEORY FOR ANY PUNITIVE, MULTIPLE, OR EXEMPLARY DAMAGES, OR LOST PROFITS.

XII.         Indemnity.

(a)           Indemnification from Infringement.

(i)            Affymetrix shall indemnify, defend
and hold harmless the Roche Indemnitees from and against liability resulting
from any Third Party claim of infringement by the Arrays of any Third Party patent
(other than Roche patents, patents of any Affiliate of Roche or patents of
Genentech or Chugai) or from any matter referred to in the second sentence of
(ii) below, provided Affymetrix is promptly notified of any and all
threats, claims and proceedings related thereto and given reasonable assistance
and the opportunity to assume sole control over the defense and all
negotiations for a settlement or compromise; Affymetrix will not be responsible
for any settlement it does not approve in writing (provided, however,
that Affymetrix will consult with Roche if a proposed settlement or compromise
could reasonably be interpreted to impact the benefits that Roche receives
under this Agreement in a materially negative manner). The foregoing obligation
of Affymetrix does not apply with respect to Arrays or portions or components:
(w) not supplied by Affymetrix; (x) made in whole or in part in accordance to
Specifications or requests of Roche, to the extent the infringement was caused
thereby; (y) which are modified by Roche or any Third Party after shipment by
Affymetrix, if the alleged infringement relates to such modification; or (z)
combined, processed or used with other products (including, without limitation,
as part of Diagnostic Products), processes or materials where the alleged
infringement relates to such combination, process or use.

Where Roche
facilitates or fails to stop (to the extent within its power) allegedly
infringing activity after being notified thereof or after being informed of
modifications that would have avoided the alleged infringement, the foregoing
indemnification provisions will apply but Affymetrix will not need to pay any
settlement, judgment, or other amounts attributable to events occurring after
giving such notice to Roche.

 

(ii)           Roche shall indemnify, defend and
hold harmless the Affymetrix Indemnitees from and against liability resulting
from any Third Party claim of infringement by Roche Technology incorporated
into any Array pursuant to the Specifications provided by Roche to Affymetrix
(other than Affymetrix patents, patents of any Affiliate of Affymetrix or
patents of Perlegen) or from any matter referred to in the second sentence of
subsection (i) above, provided Roche is promptly notified of any and all
threats, claims and proceedings related thereto and given reasonable assistance
and the opportunity to assume sole control over the defense and all
negotiations for a settlement or compromise; Roche will not be responsible for
any settlement it does not approve in writing (provided, however,
that Roche will consult with Affymetrix if a proposed settlement or compromise
could reasonably be interpreted to impact the benefits that Affymetrix receives
under this Agreement in a materially negative manner).  The foregoing obligation of Roche does not
apply with respect to Roche Technology 

 

11

 

used in Diagnostic
Products: (y)  which are modified by
Affymetrix or any Third Party after shipment by Roche, if the alleged
infringement relates to such modification; or (z) combined, processed or used
with other products, processes or materials where the alleged infringement
relates to such combination, process or use.

Where
Affymetrix facilitates or fails to stop (to the extent within its power)
allegedly infringing activity after being notified thereof or after being
informed of modifications that would have avoided the alleged infringement, the
foregoing indemnification provisions will apply but Roche will not need to pay
any settlement, judgment, or other amounts attributable to events occurring
after giving such notice to Affymetrix.

 

(b)           Indemnity Relating to Products

(i)            Affymetrix shall indemnify, defend
and hold harmless the Roche Indemnitees from and against all Damages based upon
or arising out of Physical Defects.

(ii)           Roche shall indemnify, defend and
hold harmless the Affymetrix Indemnitees from and against any and all Damages
based upon or arising out of Roche’s or its Affiliate’s import, sale or use of
Diagnostic Products except to the extent that such Damages (i) relate to
or arise from Physical Defects or (ii) arise after the transfer of such
Diagnostic Products to Affymetrix pursuant to Section VI(b) of the
License Agreement.

(c)           Conditions of Indemnification.  If either Party proposes to seek
indemnification from the other under the provisions of this Section XII,
it shall notify the other Party within 15 days of receipt of notice of any
Claim and shall cooperate fully with the other Party in the defense of such
claims or suits. The indemnified Party shall cooperate with the indemnifying
Party (at the indemnifying Party’s expense) in all respects in connection with
the defense of any such Claim.  The
indemnifying Party shall, upon written notice from the indemnified Party of a
Claim, undertake to conduct all proceedings or negotiations in connection with
the Claim, assume the defense thereof, and all other required steps or
proceedings to settle or defend any such Claim, including the selection of
counsel that shall be approved by the indemnified Party, which approval shall
not be unreasonably withheld, and payment of all reasonable expenses.  The indemnified Party shall have the right
to employ separate counsel and participate in the defense at the indemnified
Party’s sole expense.  If the
indemnifying Party fails to defend or settle in good faith any Claim as
provided above, then the indemnified Party shall have the right to take over
sole control of the defense of the Claim and all negotiations for its
settlement or compromise, provided that the indemnifying Party shall be liable
for (and shall pay as they become due) all costs and expenses (including
attorneys’ fees) reasonably incurred by the indemnified Party in its defending
or negotiating settlement of the Claim. 
Notwithstanding the foregoing, the Party primarily responsible for
handling the Claim (as determined above) will first obtain the prior written
consent of the other Party for any settlement of a Claim that (i) does not
include a complete release of the other Party from all liability with respect
thereto, (ii) compromises the rights of the other Party, or (iii) imposes any
restrictions on the other Party.

 

12

 

XIII.        Term and Termination.

(a)           Term. Unless terminated earlier
as provided herein, this Agreement shall commence on the Effective Date and
shall terminate on December 31, 2020 (the “Termination Date”).

(b)           Early Termination without Cause.
Roche shall have the option of terminating this Agreement in its
entirety effective on either December 31, 2007, June 2, 2013 or any date after
June 2, 2013 but prior to the Termination Date by written notice to Affymetrix
(“Early Termination Notice”) as provided herein. 
An Early Termination Notice must be provided at least one year prior to
early termination.  Affymetrix shall
continue to supply Arrays and Affymetrix Instruments for Diagnostic Products
through the end of the year following the date such Early Termination Notice
was provided.  No Arrays or Affymetrix
Instruments may be ordered by Roche after delivery of an Early Termination
Notice to Affymetrix if the delivery date, as reasonably determined by
Affymetrix, would be later than the date of this Agreement is to be terminated
pursuant to the Early Termination Notice (regardless of Development Plans or
forecasts setting different product delivery projections, orders or schedules).

(c)           Termination for Cause. This
Agreement may be terminated in its entirety by a Party for cause immediately
upon the occurrence of any of the following events:

(i)            If the other ceases to do business,
or otherwise terminates its business operations;

(ii)           If the other Party materially
breaches any material provision of this Agreement and fails to cure such breach
within 180 days of written notice describing the breach and the intent of such
Party to terminate if such breach is not cured within such period (provided,
however, that nothing in this subsection shall prevent a Party from seeking
immediate, injunctive relief where appropriate to protect Proprietary
Information, such Party’s proprietary or intellectual property rights or
otherwise for any reason to mitigate damages); or

(iii)          If the other Party shall seek
protection under any bankruptcy, receivership, trust deed, creditors
arrangement, composition or comparable proceeding, or if any such proceeding is
instituted against the other Party (and not dismissed within 90 days).

(d)           Effect of Termination. Sections
X (Warranty), XI (Limited Liability) XII (Indemnity) and XIII
(Term and Termination), all rights to payment in effect through
the final termination date of this Agreement pursuant to Section XIII
(Term and Termination),
the Common Terms Agreement,  remedies
for breaches or any other provision that, by its terms, should survive
termination to carry out the purposes of this Agreement, shall survive
termination of this Agreement. Obligations of the Parties under firm orders for purchase and
delivery of Arrays and Affymetrix Instruments at the time of such termination
shall remain in effect, except that in the case of termination under Section
XIII(c) the terminating Party may elect whether obligations under firm
orders  will remain in effect; provided,
however, that Affymetrix will not be obligated with respect to any
delivery dates (for firm orders or otherwise) more than thirty (30) days after
the effective date of termination if the reason for termination is not due to a
breach by Affymetrix, or more than one hundred eighty (180) days after
termination if the reason 

 

13

 

for termination is due to
a breach by Affymetrix. Each Party will promptly return or destroy all Confidential
Information of the other in accordance with Section
II(f) of
the Common Terms
Agreement. Termination is not the sole remedy under this Agreement and, whether
or not termination is effected, all other remedies will remain available.

XIV.        Miscellaneous.

(a)           No Regulatory Approval.  ROCHE UNDERSTANDS THAT THE ARRAYS AND
AFFYMETRIX INSTRUMENTS DELIVERED HEREUNDER ARE DELIVERED WITHOUT APPROVAL BY
THE FDA OR ANY COMPARABLE FOREIGN REGULATORY AGENCY. ROCHE AGREES NOT TO USE
THE ARRAYS OR AFFYMETRIX INSTRUMENTS DELIVERED HEREUNDER IN ANY CLINICAL OR
OTHER SETTING REQUIRING FDA (OR COMPARABLE AGENCY) REVIEW OR APPROVAL IN THE
ABSENCE OF OBTAINING SUCH APPROVAL. THE ARRAYS AND SYSTEMS ARE NOT LICENSED
EXCEPT AS SPECIFICALLY RECITED HEREIN OR IN ANY COLLABORATION AGREEMENT UNDER
ANY INTELLECTUAL PROPERTY RIGHTS OF AFFYMETRIX.

 

14

IN
WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed
by their properly and duly authorized officers or representatives as of the
date first above written.

 

	
  AFFYMETRIX:

  	
  ROCHE:

  
	
   

  	
   

  
	
  Affymetrix,
  Inc.

  	
  F. Hoffmann-La Roche Ltd.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By: 

  	
  /s/ Barbara
  A. Caulfield

  	
  By:

  	
  /s/ Heino
  von Prondzynski  

  
	
   

  	
  Name:

  	
  Barbara A. Caulfield

  	
   

  	
  Name:

  	
  Heino von Prondzynski

  
	
   

  	
  Title:

  	
  Executive Vice President and 

  General Counsel

  	
   

  	
  Title:

  	
  Head, Diagnostic Division

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Gregory
  F. Heath  

  
	
   

  	
   

  	
  Name:

  	
  Gregory F. Heath

  
	
   

  	
   

  	
  Title:

  	
  Head, Business Development and 

  Licensing

  
	
   

  	
   

  
	
   

  	
   

  

 

 

 

 

ANNEX 1

 

FORM OF CUSTOMER SERVICE PROVIDER ADDENDUM

 

[See attached]

 

 

Affymetrix
Instrument Service Terms and Conditions

1.             General. This
agreement (“Service Contract”) is made and entered into by and between
[Affymetrix] (“Affymetrix”) and the customer (“Customer”) identified on the
related purchase order for the provision of the services described on the
related Affymetrix quote pertaining to Affymetrix instruments, probe arrays,
applications, software, and/or services which have been sold or leased by
Affymetrix to Customer (the “Affymetrix Instrument(s)”), and any Affymetrix
software installed on the workstation, which software is owned and licensed by
Affymetrix to Customer (the “Applications”). Any part or subassembly of an
Affymetrix Instrument that is sold or provided to Customer by Affymetrix shall
be deemed “Covered Parts.” The Applications and Affymetrix Instruments are
collectively referred to herein as the “System.”

2.             Services. Subject
to the service level elected by the Customer (as initially specified on Annex
2 of the Supply Agreement), during the Term of this Service Contract and in
exchange for Customer’s payment of the agreed to fee, Affymetrix shall provide
to Customer the services as stated on the related quote (the “Covered
Services”), which can include:

(a)           Repair. Affymetrix or its designee shall
repair or otherwise correct any material reproducible failure or malfunction. A
failure or malfunction shall be “material” if it represents a substantial
nonconformity with Affymetrix’ current published specifications for the
Affymetrix Instrument and Customer determines (and notifies Affymetrix) that
such error or malfunction substantially interferes with Customer’s normal use
of the Affymetrix Instrument. All Affymetrix instruments require a consistent
and reliable power source in order to perform optimally. The GeneArray Scanner
also requires a significant amount of current, 13-15A on a 110V line, or 6-8A
on a 220V line.  Whichever system
configuration is chosen, both systems require a dedicated circuit or line in
order to allow for peaks in power required and the headroom that entails.
Affymetrix assumes no responsibility for damage caused by any power supply
circuit or related units.

(b)           Preventative Maintenance and Performance Checks. Affymetrix
or its designee will perform on-site preventative maintenance and performance
checks on the instruments as set forth in Affymetrix’ current published
preventative maintenance procedures and instrument service specifications.

(c)           Customer Support. Telephone customer
support shall be provided by Affymetrix during normal business hours.
Reasonable telephone support shall be available only to those employees of
Customer who have been trained by Affymetrix in the use of the instruments.

(d)           Service Limitations. Customer agrees to
follow the operation procedures published by Affymetrix, including procedures
for routine maintenance. Affymetrix shall have no obligation to support the
following:

(i)            Neglect,
misuse, accidents, or the failure to perform routine operational maintenance;

(ii)           Improper
or inadequate adjustment, calibration or operation of the Affymetrix
Instruments by Customer or its designee;

(iii)          Modifications
made to the Affymetrix Instrument or System without the prior written approval
of Affymetrix;

(iv)          Unapproved
Relocation of the Affymetrix Instrument or System;

(v)           Failure
or fluctuation of electrical power, lightning or static; fire, water spill,
flooding, chemical spill, earthquake, military or civil disturbance, or acts of
God;

(vi)          The
use of media, supplies or other products not supplied or approved by
Affymetrix;

(vii)         The
use of any equipment, software, or peripherals which are not part of the
Affymetrix Instrument or System; or

(viii)        Any
computer related hardware, unless otherwise on the Sales Quote.

Customer shall reimburse Affymetrix at Affymetrix’ then-current service
call fees, including all labor, parts and zone charges, for all work of
Affymetrix or its designee incurred in investigating any failure or malfunction
that Affymetrix reasonably determines not to be part of the Covered Services.

 

 

 

3.             Installation Services. When
this Service Contract is entered into concurrently with the initial purchase,
lease or license of the System, and upon Customer’s request, Affymetrix or its
designee may provide on-site installation assistance for the System and such
other services as Affymetrix reasonably determines are necessary to permit
Customer to begin use of the System. Customer shall promptly perform all tasks
reasonably requested by Affymetrix or its designee in connection with such
installation and site preparation.

4.             Limitations. Any
and all instruments, software, other products, or any parts or subassemblies of
the foregoing that are not provided by Affymetrix or its designee shall be
deemed “Non-Covered Equipment.” Affymetrix shall have no obligations with
respect to Non-Covered Equipment; moreover, and notwithstanding anything herein
to the contrary, Affymetrix shall have no obligation to provide Covered
Services in connection with any Affymetrix Instruments or Covered Parts:

(a)           that
have been substantially altered by Customer, including any serial numbers or
other identifying markings;

(b)           that
do not incorporate all of Affymetrix’ engineering improvements or other fixes
that Affymetrix requests Customers to implement;

(c)           that
incorporate Non-Covered Equipment or have Non-Covered Equipment attached to
them;

(d)           that
have been operated in conditions outside of Affymetrix’ environmental or
electrical site specifications as defined in the product operation,
installation or maintenance manuals provided with the Affymetrix Instruments;

(e)           that
have been operated in hazardous environments or used to analyze hazardous
materials that may cause residual contamination;

(f)            that
have been repaired or maintained by anyone other than Affymetrix or its
designee, except such routine operational maintenance as set forth in the
product operation, installation or maintenance manuals provided with the
Affymetrix Instrument.

5.             Access and Service Safety. Customer
will provide Affymetrix and its designees reasonable and safe access to all
Affymetrix Instruments and Systems for the provision of any services and for any
audit of compliance with Affymetrix’ installation and operational guidelines.
If environmental or operational contamination creates a hazard for Affymetrix
personnel, Affymetrix may supervise Customer’s performance of service
procedures. Customer is responsible for proper disposal of all contaminated
material and of contaminated parts that cannot be safely returned to
Affymetrix. Any Affymetrix services that Affymetrix may provide in connection
with the activities contemplated by this paragraph shall be deemed not to be
Covered Services, and Customer shall reimburse Affymetrix at Affymetrix’
then-current service call fees, including all labor, parts and zone charges,
for all such work of Affymetrix or its designee.

6.             Relocation of Covered Equipment. If
any Affymetrix Instrument is moved from its installation position, Affymetrix
may, at its discretion, determine that such Affymetrix Instrument has been
relocated (a “Relocation”). Relocation of Affymetrix Instruments may result in
service charges as follows:

(a)           “Approved
Relocation.”  Relocation of
Affymetrix Instruments by Affymetrix or its designees is permitted.  Affymetrix Instruments may be moved with the
assistance of Affymetrix at Affymetrix’ service call fees, including all labor,
parts and zone charges. With prior written approval of Affymetrix, Customer may
move specified Affymetrix Instruments without incurring any charges. Customer
will contact Affymetrix prior to moving any Affymetrix Instrument.

(b)           “Unapproved
Relocation.”  Any Service
Contract or warranty covering an Affymetrix Instrument shall be rendered void
and unenforceable by Relocation of such Affymetrix Instrument without the prior
written approval of Affymetrix. At the discretion of Affymetrix, upon
completion of a maintenance inspection and service at Affymetrix’ then-current
service call fees, including all labor, parts and zone charges, the subject
Service Contract or warranty may be reinstated.

(c)           “New
Site Location.”  Relocation of
Affymetrix Instruments may result in additional service charges and
modification of response times, as determined by Affymetrix.

 

 

7.             Obsolete Products. Covered
Parts, Affymetrix Instruments or System that are no longer offered for sale or
license by Affymetrix (“Obsoleted Items”) will be maintained and repaired on a
reasonable efforts basis by Affymetrix. If Affymetrix determines in its
discretion that support and service of such Obsolete Items is no longer
reasonable, Affymetrix shall notify Customer of such determination and such
Obsoleted Item shall be deemed not to be a Covered Part, Affymetrix Instrument
or System.

8.             Billable Services. All
services performed by Affymetrix on Customer’s Non-Covered Equipment or which
are not Covered Services (collectively, “Billable Services”) shall be billable
to Customer at Affymetrix’ then-current service call fees, including all labor,
parts and zone charges.

9.             Ownership. All
replaced parts removed from the System in connection with any services shall
become the property of Affymetrix upon their replacement. Any and all
modifications to the Affymetrix Instrument or System, including all
intellectual property rights associated therewith, made or provided by
Affymetrix pursuant to the Service Contract, whether alone or with any
contribution from Customer or its employees, agents or contractors, shall be
owned exclusively by Affymetrix. To the extent Customer or its employees,
agents or contractors, may acquire any right or interest therein by operation
of law, Customer irrevocably assigns all such right and interest exclusively to
Affymetrix. Customer shall maintain and enforce agreements and policies with
its employees, agents and contractors sufficient to give effect to the
provisions of this Paragraph.

10.          Limited Warranty. Affymetrix
warrants that it will render the services hereunder in a good and workmanlike
manner. As Affymetrix’ sole responsibility and Customer’s exclusive remedy in
the event of any material failure to meet such standard, Affymetrix shall make
a reasonable effort to remedy any resulting discrepancies. Any claim based on
the foregoing warranty must be submitted in writing in accordance with
Affymetrix’ standard procedures within thirty (30) days after delivery or the
date of the required delivery of the pertinent services at issue. EXCEPT AS EXPRESSLY
SET FORTH IN THIS PARAGRAPH, AFFYMETRIX MAKES NO WARRANTY OR REPRESENTATION,
EXPRESS OR IMPLIED, AS TO ANY MATTER WHATSOEVER, INCLUDING WITHOUT LIMITATION,
THE SERVICES. AFFYMETRIX SPECIFICALLY DISCLAIMS, WITHOUT LIMITATION, ANY
IMPLIED WARRANTY OF MERCHANTABILITY, NON-INFRINGEMENT OR FITNESS FOR A
PARTICULAR PURPOSE.

11.          Limitation of Liability. The
total liability of Affymetrix (including its employees, agents, subcontractors
and suppliers) for all claims, whether in contract, tort (including negligence,
product liability and strict liability), or otherwise, arising out of,
connected with, or resulting from any performance or on performance hereunder
shall not exceed the total fees hereunder allocable to the services that give
rise to the claim, up to a maximum of twelve (12) months for the services at
issue. In no event shall Affymetrix be liable for any incidental,
consequential, indirect, or special damages (including, without limitation,
damages for loss of revenue, cost of capital, claims of customers for service
interruptions or failure of supply, and costs and expenses incurred in
connection with labor, overhead, transportation, installation, or removal of
equipment or programming or substitute facilities or supply sources), even if
Affymetrix has been advised of the possibility of such damages.

12.          Delays. The
time within which Affymetrix obligations are required to be fulfilled hereunder
will be extended for a period equal to the time lost by reason of any delay
arising directly or indirectly from causes beyond Affymetrix’ reasonable
control, including without limitation, acts of God, unforeseeable
circumstances, acts or omissions of any governmental authority, war riot,
revolution, fires, floods, earthquakes, strikes, labor disputes, sabotage,
epidemics, failure to obtain timely instructions or information from Customer,
or necessary and proper labor, materials, components, facilities or
transportation.

	
   

  	
  AFFYMETRIX

  	
   

  
	
   

  	
  By: __________________________

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CUSTOMER

  	
   

  
	
   

  	
  By: __________________________

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

ANNEX 2

CURRENT INSTRUMENT SERVICE LEVEL PACKAGES

	
   

  	
  Phone
  Coverage

  	
  Telephone
  Response

  	
  On-Site
  Response

  	
  Emergency
  Visits

  	
  Preventative
  Maintenance Visits

  	
  Applications
  Training

  	
  Affymetrix
  Instrument Relocation

  	
  Exclusions

  	
  Annual
  Price

  
	
  Diagnostic Premium Service

  	
  Mon-Fri;
  8am-5pm, excluding holidays

  	
  8 hours or
  less

  	
  96 hours or
  less

  	
  Three

  	
  One

  	
  None

  	
  None

  	
  Scanner
  Laser, Power Supply and Consumables

  	
  Standard
  Affymetrix pricing

  
	
  Prevention Plus

  	
  Mon-Fri;
  8am-5pm, excluding holidays

  	
  8 hours or
  less

  	
  96 hours or
  less

  	
  Three

  	
  One

  	
  None

  	
  None

  	
  Scanner
  Laser, Power Supply and Consumables

  	
  Standard
  Affymetrix pricing

  
	
  Assurance

  	
  Mon-Fri;
  8am-5pm, excluding holidays

  	
  8 hours or
  less

  	
  72 hours or
  less

  	
  Unlimited

  	
  One

  	
  None

  	
  None

  	
  Consumables

  	
  Standard
  Affymetrix pricing

  
	
  Elite

  	
  Mon-Fri;
  8am-5pm, excluding holidays

  	
  4 hours or
  less

  	
  48 hours or
  less

  	
  Unlimited

  	
  One

  	
  2 Days

  	
  1 Per Year

  	
  Consumables

  	
  Standard
  Affymetrix pricing

  
	
  Diagnostic Level

  	
  *

  	
  *

  	
  *

  	
  *

  	
  *

  	
  *

  	
  *

  	
  *

  	
  *

  

 

*  Roche
or a purchaser of Affymetrix Instruments may request that Affymetrix roll out a
new service level suitable for the diagnostics marketplace.  Upon receipt of such a request, Affymetrix
will use commercially reasonable efforts to meet such request (and set a
corresponding commercially reasonable price for such enhanced services).

Affymetrix
reserves the right to modify its service levels in effect (and prices therefor)
from time to time.

 

ANNEX 3

 

Affymetrix
Software Maintenance Terms and Conditions

1. General — This agreement (the “Software
Maintenance Agreement”) constitutes an offer by [Affymetrix] (“Affymetrix”) to
provide to the customer (“Customer”) identified below certain services
described herein relating to the instrumentation software (the “SOFTWARE”).  The Software Maintenance Agreement shall be
effective as of the date Customer first receives the SOFTWARE (the “Effective
Date”). If Customer’s service order is deemed an offer, Affymetrix’ acceptance
is expressly conditional on Customer’s acceptance of these terms; if these
terms are considered an offer by Affymetrix, Customer’s acceptance is expressly
limited to these terms. Any additional or different terms or conditions
proposed by Customer shall not become part of this Agreement. To the extent
that a purchase order or other form is used by Customer for accounting
convenience, Affymetrix objects to any proposed changes. Subject to the terms
hereof, Affymetrix will provide Support Services to Customer for the number of
copies of SOFTWARE for which Customer is licensed.

2. Support Services —
“Support Services” consist of (a)
Error Correction and Telephone Support provided to the technical support
contact concerning the installation and use of the then-current release of
SOFTWARE and the Previous Sequential Release thereof and (b) Product Updates / Upgrades that
Affymetrix in its sole discretion makes generally available (if Customer has
purchased such Product Upgrade). Notwithstanding the foregoing, nothing herein
shall be construed as a guarantee that Affymetrix will release Product Updates
/ Upgrades during the term, or any renewal term, of this Software Maintenance
Agreement.

A “Product Update” consists of one (1) copy of published revisions to
the printed documentation and one (1) copy of revisions to the SOFTWARE which
are not designated by Affymetrix as products for which it charges a separate
fee.

A “Product Upgrade” is a new software product that contains
enhancements to the SOFTWARE. Affymetrix shall advise Customer of recent
Product Upgrades.

All Product Updates and Upgrades provided to Customer hereunder shall
be governed by the terms of the applicable license agreement(s) (including
without limitation the Server Software License Agreement and/or End-User
License Agreement) relating to the SOFTWARE (collectively, the “License
Agreement”). Upon installation of Product Updates or Upgrades, all prior
versions or releases thereof shall be destroyed by Customer. Upon written
request from Affymetrix, Customer shall certify in writing the destruction of
all such prior versions in accordance with this section.

Customer
shall pay Affymetrix, at Affymetrix’ then-current standard consulting rates
plus related expenses incurred therewith, for all additional services rendered
by Affymetrix hereunder, including without limitation, for Product Upgrades
that Customer has elected to purchase and re-installation of any SOFTWARE as a
result of hardware or software upgrades.

3. Fees and Payment — Customer shall pay Affymetrix the
Annual Maintenance Fee for the initial term, and each renewal term, of the
Software Maintenance Agreement.  Annual
Maintenance Fees will be billed on an annual basis and payable in advance.
Overdue payment of any such fee shall bear interest at the lesser of eighteen
percent (18%) per annum or the maximum rate allowed under applicable law.

If Customer elects to obtain Support Services, Support Services must be
purchased to cover all copies of the applicable SOFTWARE. If Customer fails to
purchase/renew maintenance for the Software, or if such maintenance is
terminated pursuant to the terms of this Agreement, Customer may continue to
use such Software pursuant to the License granted hereunder but will not be
entitled to receive maintenance services for such Software. To reinstate such
services, Customer must pay all maintenance fees on a cumulative basis for
periods during which Customer did not purchase coverage.  Customer shall be responsible for all taxes
associated with Support Services other than U.S. taxes based on Affymetrix’ net
income. Each payment by Customer is due within thirty (30) days from receipt of
the applicable Affymetrix invoice.

If any payment is not made within one hundred and eighty (180) days of
the applicable due date, Support Services will be Terminated.

Customer shall pay Affymetrix the purchase price of any Product
Upgrades Customer elects to purchase at Affymetrix’ then current price for such
Product Upgrade.

 

 

4. Error Correction - Affymetrix will exercise
commercially reasonable efforts to correct any Error reported by Customer in
the then-current, unmodified release of SOFTWARE in accordance with the
priority level reasonably assigned to such Error by Affymetrix.

(a)   Priority A Errors.  Affymetrix shall promptly commence the
following procedures:

(i)    assign Affymetrix engineers to correct the
Error;

(ii)   notify Affymetrix
management that such Errors have been reported and of steps being taken to
correct such Error(s);

(iii)  provide Customer with
periodic reports on the status of the corrections; and

(iv)  initiate work to provide Customer with a
Workaround or Fix.

(b)   Priority B Errors.  Affymetrix shall exercise commercially
reasonable efforts to include the Fix for the Error in the next regular
SOFTWARE maintenance release.

(c)   Priority C Errors.  Affymetrix may include the Fix for the Error
in a subsequent major release of the SOFTWARE.

If Affymetrix believes that a problem reported by Customer may not be
due to an Error in the SOFTWARE, Affymetrix will so notify Customer. At that
time, Customer may (1) instruct Affymetrix to proceed with problem
determination at its possible expense as set forth below, or (2) instruct
Affymetrix that Customer does not wish the problem pursued at its possible
expense.

If Customer requests that Affymetrix proceed with problem determination
at its possible expense and Affymetrix determines that the error was not due to
an Error in the SOFTWARE, Customer shall pay Affymetrix, at Affymetrix’
then-current and standard consulting rates, for all work performed in
connection with such determination, plus reasonable related expenses incurred
therewith. If Customer instructs Affymetrix that it does not wish the problem
pursued at its possible expense or if such determination requires effort by
Affymetrix in excess of Customer’s instructions, Affymetrix may, at its sole discretion,
elect not to investigate the problem with no liability therefor.

Customer shall not be liable for (i) problem determination or
repair to the extent problems are due to Errors in the SOFTWARE, (ii) work
performed under this paragraph in excess of its instructions or (iii) work
performed after Customer has notified Affymetrix that it no longer wishes work
on the problem determination to be continued at its possible expense (such
notice shall be deemed given when actually received by Affymetrix).

5.  Exclusions - 
Under this Agreement Affymetrix shall have no obligation to support:

(a)   Any Computer related hardware, unless otherwise agreed in writing
by Affymetrix and the Customer.

(b)   Any On-Site support, unless otherwise agreed in writing by Affymetrix
and the Customer.

(c)   SOFTWARE that is altered, damaged or modified, except by
Affymetrix, or any portion of the SOFTWARE incorporated with or into other
software;

(d)   SOFTWARE that is not the then-current release
or immediately Previous Sequential Release;

(e)   SOFTWARE problems caused by Customer’s
negligence, abuse or misapplication, use of SOFTWARE other than as specified in
the Affymetrix’ user manual or Documentation, or by other factors beyond the
control of Affymetrix; or

(f)    SOFTWARE installed on any computer hardware
that is not supported by Affymetrix or any computer or workstation not strictly
complying with specifications listed in Documentation; or Software for which a
license under the License Agreement has not been obtained or applicable fees
have not been paid for any copy of SOFTWARE.

Affymetrix
shall have no liability for any changes in Customer’s hardware which may be
necessary to use SOFTWARE due to a Workaround or maintenance release.

 

 

8. Definitions —

(a)   “Annual Maintenance Fee” shall be as set
forth in the Sales Quote.

(b)   “Documentation” shall mean the manual(s)
relating to the use of the SOFTWARE delivered by Affymetrix to Customer.

(c)   “Error” means an error in the SOFTWARE which
significantly degrades the SOFTWARE as compared to the Affymetrix published
performance specifications.

(d)   “Error Correction” means the use of
reasonable commercial efforts to correct Errors..

(e)   “Fix” means the repair or replacement of
object or executable code versions of SOFTWARE to remedy an Error.

(f)    “Previous Sequential Release” means at any
time the version or release of SOFTWARE which has been replaced by the
then-current version or release of such SOFTWARE. Notwithstanding anything to
the contrary herein, a Previous Sequential Release will be supported by
Affymetrix only for a period of six (6) months after release of the
then-current version or release.

(g)   “Priority A Error” means an Error which
renders SOFTWARE inoperative or causes the SOFTWARE to fail catastrophically.

(h)   “Priority B Error” means an Error which
substantially degrades the performance of SOFTWARE or materially restricts
Customer’s use of the SOFTWARE.

(i)    “Priority C Error” means an Error which
causes only a minor impact on the performance of  SOFTWARE or Customer’s use of SOFTWARE.

(j)    “Support Services” or “Maintenance” means
Affymetrix’ support services as described in Section 2.

(k)   “Telephone Support” means technical
assistance provided by Affymetrix to the technical support contact during
normal business hours concerning the installation and use of the then-current
release of SOFTWARE and the Previous Sequential Release.

(l)    “Workaround” means a change in the
procedures followed or data supplied by Customer to avoid an Error without
substantially impairing Customer’s use of SOFTWARE.

9.  Miscellaneous - THESE TERMS AND
CONDITIONS CONSTITUTE A SERVICE AGREEMENT AND NOT A PRODUCT WARRANTY. THE
SOFTWARE AND ALL MATERIALS RELATED TO THE SOFTWARE ARE SUBJECT EXCLUSIVELY TO
THE WARRANTIES SET FORTH IN THE LICENSE AGREEMENT. THIS SOFTWARE MAINTENANCE
AGREEMENT SHALL NOT CHANGE OR SUPERSEDE ANY TERM OF THE LICENSE AGREEMENT
EXCEPT TO THE EXTENT UNAMBIGUOUSLY CONTRARY THERETO.

[                                 ]:

	
  By:

  	
   

  
	
  Name (Print):

  	
   

  
	
  Title:

  	
   

  
	
  Date:

  	
   

  
				

 

Signature of Buyer Officer or Designee.
By signing the above, the signatory is representing and warranting that they
are authorized to enter into this Agreement on behalf of Buyer.

 

EXHIBIT A

 

AFFYMETRIX INSTRUMENT PRICING SCHEDULE

 

	
  Number of Affymetrix Instruments Purchased per Calendar
  Year

  	
   

  	
  Discount

  	
   

  	
  Projected Sales Price Per Affymetrix Instrument System*

  
	
  [***]

  	
   

  	
  [***]%

  	
   

  	
  $[***]

  
	
  [***]

  	
   

  	
  [***]%

  	
   

  	
  $[***]

  
	
  [***]

  	
   

  	
  [***]%

  	
   

  	
  $[***]

  
	
  [***]

  	
   

  	
  [***]%

  	
   

  	
  $[***]

  
	
  [***]

  	
   

  	
  [***]%

  	
   

  	
  $[***]

  
	
  [***]

  	
   

  	
  [***]%

  	
   

  	
  $[***]

  

The “Projected Sales Price Per Affymetrix Instrument” is based on [***]
pricing.  The actual sales price will be
based on the appropriate discount (as indicated above) on the [***] Affymetrix
price list.

* An “Affymetrix Instrument System” consists of the following
components or the then-comparable version:

        •       GeneChip Scanner 3000;

        •       GeneChip Fluidics Station 400;

        •       GeneChip Hybridization Oven; and

        •       GeneChip Workstation consisting of a
computer workstation, a copy of the Microarray Suite computer software for the
Affymetrix Instrument System and a user license for such software

 

 

EXHIBIT B

COMPONENT CHIP AND
DEVELOPMENT CHIP PRICING SCHEDULE

 

	
   

  	
   

  	
  2003

  	
   

  	
  2004

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  	
  2007

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Chips per wafer (commercial)

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  Feature size

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  # of features per chip

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  Packaging

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  Projected transfer price

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  
	
  [***]
  Transfer Price

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  

 

Note:

 

•       [***] format available for
Roche internal development effort [***] before commercial availability

•       We expect packaging to be
based on [***] after [***]; transfer price [***] packaging [***]

 

The “[***] Transfer Price” shall be the [***] transfer price set forth
above from 2003 to 2007 ([***] or [***] packaging, as indicated).  The [***] Transfer Price for [***] Arrays
with the specifications set forth above throughout the remaining term of this
Agreement after 2007 shall be equal to the [***] set forth above in the table
([***], as indicated).

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