Document:

EXHIBIT 10.62

 

 

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.

 

 

 

 

 

 

 

 

 

 

Affymetrix Instrument Agency Agreement

 

F. Hoffmann-La Roche Ltd.

and

Affymetrix, Inc.

 

dated

 

January 29, 2003

 

 

 

CONTENTS

 

	
  I.

  	
  Introduction.

  	
   

  
	
  II.
  

  	
  Common Terms and
  Definitions

  	
   

  
	
  III.

  	
  Appointment; Licenses.

  	
   

  
	
  IV.
  

  	
  Payments.

  	
   

  
	
  V.

  	
  Supply of Affymetrix
  Instruments.

  	
   

  
	
  VI.

  	
  Covenants

  	
   

  
	
  VII.

  	
  Term and Termination.

  	
   

  
	
  VIII.

  	
  Warranty and Warranty
  Disclaimers.

  	
   

  
	
  IX.
  

  	
  Limited Liability.

  	
   

  
	
  X.

  	
  Indemnity.

  	
   

  
	
   

  	
   

  	
   

  
	
  Annex 1:

  	
  Form of Customer Service Provider Addendum

  	
   

  
	
  Annex 2:

  	
  Current
  Affymetrix Instrument Service Level Packages

  	
   

  
	
  Annex 3:

  	
  Software
  Maintenance Terms and Conditions

  	
   

  

 

 

 

i

 

 

 

AFFYMETRIX INSTRUMENT AGENCY AGREEMENT

 

January 29, 2003

This AFFYMETRIX
INSTRUMENT AGENCY 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.                                     Introduction.

(a)           As
part of the Collaboration, Affymetrix and Roche desire to enter into an
agreement whereby Affymetrix will appoint Roche as its nonexclusive distributor
of Affymetrix Instruments, together with the documentation, software and other
materials therefore, to purchasers of Diagnostic Products sold by Roche or its
Affiliates in the Unserved Territory.

(b)           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)    “Commission” shall have the meaning set
forth in Section IV(a).

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

III.                             Appointment; Licenses.

(a)           Affymetrix Instrument Distribution
Rights.  Subject to the terms and
conditions of this Agreement, during the term of this Agreement, Affymetrix
hereby appoints Roche as its nonexclusive agent for distribution of Affymetrix
Instruments, together with the documentation, software and other materials
therefore (whether developed by Affymetrix, Affymetrix’ Affiliates or Third
Parties on behalf of Affymetrix or its Affiliates) to Roche Customers.  Notwithstanding the foregoing, Roche shall
only have the right to distribute Affymetrix Instruments to Roche Customers
located in and taking delivery in an Unserved Territory.

 

 

(b)           Technology Licenses.

(i)    Except to the extent expressly and
unambiguously set forth herein, Affymetrix retains all rights and licenses with
respect to the Affymetrix Instruments and software, and Roche has no right to
use any Affymetrix Instrument or related software for its own purposes except
to solicit orders and otherwise exercise its rights and fulfill its obligations
hereunder.  Subject to the terms and
conditions of this Agreement, Affymetrix hereby grants to Roche and its
Affiliates a limited, [***] license to solicit orders of Affymetrix Instruments and software within an [***], and otherwise fulfill
its obligations hereunder, in accordance with the provisions of Section
III(a) above (including the normal implied license to end-users associated
with the sale of such Affymetrix Instruments and software). 
Notwithstanding the foregoing, Roche shall have no right to, and will
not (i) import, Sell, distribute, have Sold or otherwise transfer or dispose of
Affymetrix Instruments or software alone or bundled with any products or
services except with any Diagnostic Products or other Affymetrix Instruments
developed to accompany Diagnostic Products, (ii) make or have made Affymetrix
Instruments or components thereof, (iii) distribute Affymetrix Instruments or software
to Roche Customers located in or taking delivery in any Affymetrix Territory or
(v) reverse engineer any Affymetrix Instrument or software.  Affymetrix and its Affiliates agree to grant
to Roche Customers purchasing Affymetrix Instruments and software the normal
implied license thereon associated with such purchase.

(ii)   Affymetrix agrees to provide all post-sale
training, installation, technical support and service for Affymetrix
Instruments to Roche Customers located in an Unserved Territory on substantially
similar terms and conditions as Affymetrix or its Affiliates offer such support
and services to their respective customers of Affymetrix Instruments, provided that (a) to the extent that Roche
Customers desire post-sale training, installation, technical support or
services for Affymetrix Instruments, Roche Customers shall enter into the
required agreements with Affymetrix or its Affiliates directly to obtain such
services, (b) the prices of such services will be increased on commercially
reasonable terms on a case-by-case basis to reflect the fact that Affymetrix
does not have distribution channels or personnel located in any of the Unserved
Territories and (c) response times will be lengthened on a case-by-case basis
to account for the time it will take Affymetrix to get support personnel to an
Unserved Territory.  Affymetrix shall
have no obligation to provide any direct sales, training, installation,
contract negotiation or support services to Roche or any Roche Affiliate.

(c)           Labeling. All Affymetrix
Instruments, software and related promotional or instructional materials shall
not be altered by Roche or its Affiliates in any manner without Affymetrix’
prior written consent and shall bear the Designations and regulatory labels and
markings required by Affymetrix and/or its suppliers.  Notwithstanding the foregoing, Affymetrix shall label Affymetrix
Instruments, software, documentation and other materials therefor,
appropriately under applicable regulations in order to permit Roche’s sale of such
products and instruments to Roche Customers in accordance with this Agreement.

(d)           Method of Marketing.  Roche (and its Affiliates’) marketing of
Affymetrix Instruments must be at Affymetrix’ then-current prices to its
customers (without additional markup) and shall be sold pursuant to and be
accompanied by Affymetrix’ standard terms and conditions (as provided by
Affymetrix to Roche and which may be amended from time to time by Affymetrix in
Affymetrix’ sole and absolute discretion). 
Notwithstanding the foregoing, Affymetrix and its Affiliates agree to
grant to any Roche Customer who purchases Affymetrix

 

 

2

 

Instruments, software and
related materials the normal implied license thereon associated with such
sale.  To the extent Roche becomes aware
that any Roche Customer is violating Affymetrix’ terms and conditions of sale
(as agreed by such Roche Customer), including but not limited to, the terms and
conditions set forth on Annex 1 and Annex 2 hereof, Roche shall
use its commercially reasonable efforts to notify Affymetrix of such Roche
Customer conduct, but in any event Roche shall have no liability for such Roche
Customer conduct absent Roche inducement to cause such violation or Roche’s
participation in such violation.

(e)           Product Modification or
Discontinuation.  Affymetrix shall
add Affymetrix Instruments from time to time to the list of Affymetrix
Instruments attached as Exhibit C to the Common Terms Agreement as
Affymetrix introduces new Affymetrix Instruments. Affymetrix reserves the right
to materially modify or discontinue any Affymetrix Instrument at any time with
90 days prior written notice to Roche after (i) fulfilling any orders already
submitted to Affymetrix under this Agreement for such discontinued Affymetrix
Instrument and (ii) agreeing to continue to supply any ongoing clinical trial
or development program then in progress utilizing an Affymetrix Instrument sold
under this Agreement (for the stated duration of such clinical trial or
development program), provided, however
that Affymetrix shall only be obligated to continue supplying ongoing clinical
trials or development programs lasting longer than 12 months from the date of
first sale of Affymetrix Instruments under this Agreement for which Roche has
given its prior written consent, such consent not to be unreasonable
withheld.  Notwithstanding the
foregoing, Affymetrix may materially modify or discontinue the supply of any
Affymetrix Instrument if the discontinuation is as a result of a legal
requirement or due to potential harm or detriment to an end-user of the
discontinued Affymetrix Instrument.

IV.                             Payments.

(a)           Commission.  Roche shall receive a [***] percent ([***]%)
commission on [***] less [***], [***] (to the extent such [***] are invoiced
separately by end-users’ distributors or agents) and [***] (the “Commission”)
of Affymetrix Instruments distributed pursuant to Section III
above.  Payment for Affymetrix
Instruments sold by Roche or its Affiliates pursuant to this Agreement shall be
made by Roche’s Customers directly to Affymetrix or its Affiliate.  Affymetrix shall make quarterly payments for
the relevant quarter equal to the aggregate amount of Commissions on Affymetrix
Instruments sold under this Agreement. 
Such payment and a payment report in form reasonably satisfactory to
Roche detailing the computation of the preceding quarter’s Gross Sales and the
Commission for that quarter, including the Affymetrix Instruments sold, the
Gross Sales associated therewith, Commissions earned and payments made (and any
credits or offsets taken), shall be remitted to Roche within 60 days following the end of such
quarter.  Commissions shall be earned by
Roche upon Affymetrix’ (or its Affiliate’s) invoicing of Roche Customers hereunder
for sales of Affymetrix Instruments and software.  Payment shall be made for the preceding quarter at the time the
payment report is made. If Roche receives any payment for Affymetrix
Instruments distributed under this Agreement, Roche shall remit promptly the
full amount of such payment to Affymetrix in full so that Affymetrix may
properly account for payment of such sale.

(b)           Interest.  Late payments shall bear interest at the
lower of: (i) the Bank of America prime rate or (ii) the maximum rate allowed
by law.

 

3

 

(c)           Records and Audit Rights.  Each Party shall, on behalf of itself and
its Affiliates, keep, in the English language, complete and accurate records,
sufficiently detailed to document and confirm amounts payable under this
Agreement, and shall maintain such records for at least three years.  Each Party shall have the right to hire an
independent certified public accountant to inspect all records of the other
Party required to be kept or submitted by the other Party pursuant to this
Agreement (which accountant shall be reasonably acceptable to the other Party
and shall keep all information confidential, except to disclose the fact and
amount of any discrepancies); provided: (i) such audit is conducted during
normal business hours, (ii) such audit is conducted no more often then once per
year, (iii) such audit is conducted only after the auditing Party 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 auditing Party shall bear the
full cost and expense of such audit, unless a discrepancy in excess of 5% in
favor of the auditing Party is discovered, in which event, the audited Party
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 IV(b))
shall be immediately due and payable.

V.                                 Supply
of Affymetrix Instruments.

(a)           Affymetrix Instruments.  Roche shall provide notice of potential
orders of Affymetrix Instruments from Affymetrix to be distributed pursuant to Section
III(a) hereof.  Such Affymetrix
Instruments shall be purchased pursuant to order notices provided to Affymetrix
on Affymetrix’ then-current terms and conditions, and Affymetrix will fill such
orders with not less than the priority afforded any other purchaser.  Roche may only market such Affymetrix
Instruments that Affymetrix or its Affiliates have made available for
commercial sale.   All order notices
shall specify the name and delivery address of the Roche Customer purchasing
such Affymetrix Instruments.  Upon
receipt of such order notice, Affymetrix shall provide Affymetrix’ standard
documentation for Affymetrix Instruments (including, without limitation,
Affymetrix’ customary terms and conditions) directly to the purchaser.  All contracts for Affymetrix Instruments
purchased shall be entered into between Affymetrix and the purchaser directly,
except that payment for Affymetrix Instruments sold by Roche or its Affiliates
pursuant to this Agreement shall be made to Affymetrix or its Affiliates.  Roche shall assist Affymetrix in collecting
payment for sales made by Roche hereunder. 
Affymetrix shall provide to recipients of the Affymetrix Instruments
distributed pursuant to this Agreement the option to trade such Affymetrix
Instruments or components thereof for replacement instruments newly developed
by Affymetrix, its Affiliates or Third Parties on Affymetrix’ behalf from time
to time if, and on the same terms as are, offered to Affymetrix’ end-users of
such Affymetrix Instruments generally from time to time.

(b)           Confirmation.  Within five (5) business days of receipt of
each order notice from Roche, Affymetrix will send Roche a confirmation setting
forth the quantity of each Affymetrix Instrument that will be supplied and
Affymetrix’ estimated delivery date. Except for terms related to the specific
order notice (such as quantity and delivery dates), no order notice or
confirmation or other documentation shall vary the terms and conditions of this
Agreement unless agreed to in writing signed by both Parties. Affymetrix shall
have no liability for delays in filling any order notice filled pursuant to Section
V(a).

 

4

 

(c)           Packing and Shipping.  Sales of Affymetrix Instruments shall only
be permitted as packaged by Affymetrix (with no portion of the package
obscured).  Affymetrix will deliver the
Affymetrix Instruments directly to Roche Customers at the address supplied by
Roche in its order notice.  Affymetrix
Instruments will be packed in Affymetrix’ standard shipping packages and
shipped to the address specified by Roche in its order notice in accordance with
quality assurance and packaging procedures determined by Affymetrix from time
to time.  If a particular Affymetrix
Instrument requires any packaging, process or procedure other than those
Affymetrix utilizes for its catalog, non-custom designed Affymetrix
Instruments, Affymetrix shall perform such packaging, processes or procedures
at Roche’s request, so long as Affymetrix determines such packaging, process or
procedures to be commercially reasonable. 
Any such requests shall be provided at [***] on a [***] plus [***] (provided,
however, that modifications to labeling done primarily for regulatory
purposes shall not be deemed a packaging change or process that would trigger
any [***] pursuant to this provision).

Deliveries of Affymetrix Instruments will be F.O.B.
Affymetrix’ facility or the facility of its sales representative. Affymetrix
will ship via a carrier selected by Roche. Title and risk of loss or damage for
deliveries will pass to the Roche Customer upon actual delivery of the
Affymetrix Instruments to the carrier for shipment to the Roche Customer.  Roche or the Roche Customer will advise
Affymetrix in writing if Roche’s Customer desires insurance on any shipments of
Affymetrix Instruments.  Affymetrix will
pay all shipping costs, duties, insurance and sales taxes and will invoice Roche
Customers directly for such amounts, requesting payment to be remitted to
Affymetrix.

 

(d)           Order Modifications.  Roche may increase, decrease, cancel,
re-schedule or otherwise modify any order accepted by Affymetrix only with the
written approval of Affymetrix.  Roche
acknowledges that Affymetrix may impose a reasonable and customary charge for
any modification of an order that it approves.

(e)           Literature. Affymetrix shall
provide to Roche the quantities of marketing literature for Affymetrix Instruments
reasonably requested by Roche at [***] for such marketing literature.  Affymetrix will also endeavor to provide at
specified prices a limited number of service notes, special jigs or tools or
test equipment, and service documentation and periodic service bulletins
specific to the Affymetrix Instruments currently offered by Affymetrix.
Affymetrix shall identify specific technical support and service engineering
points of contact at Affymetrix.

(f)            Software Maintenance and Upgrades.  Notwithstanding anything to the contrary in
this Agreement, Annex 3 hereto shall govern the terms of all software
maintenance and upgrades.

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

(a)           Training of Personnel by Roche.  Roche will ensure that its sales personnel,
support personnel and other representatives are knowledgeable with respect to
the Affymetrix Instruments.  Roche
shall, at its own expense, send representatives as Roche determines necessary
to Affymetrix’ facility in Santa Clara, California, or another
Affymetrix-designated 

 

5

 

location, for up to
thirty (30) days of training and proficiency certification including without
limitation general product overviews, product positioning and customary terms
and conditions, provided that Roche shall pay all travel related expenses of
its representatives who participate in such training. Affymetrix shall provide
additional training to Roche personnel at Affymetrix’ then-current rates (not to
exceed thirty (30) working-days per year). Affymetrix Instrument applications
support training shall be provided at no charge, provided that Roche shall pay
all travel related expenses.

(b)           Compliance.  Each Party will maintain compliance with all
laws, rules, codes, regulations and other legal requirements applicable to the
Affymetrix Instruments distributed under this Agreement, in accordance with the
regulatory approach and requirements determined by Affymetrix for such
instruments.  Roche agrees to only
distribute Affymetrix Instruments in accordance with applicable regulatory
requirements.

(c)           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 an Affymetrix Instrument
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, each Party will work with the other Party, 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.

(d)           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.

(e)           Assignment of Modification By Roche
to Affymetrix.  Roche will assign to
Affymetrix, without the payment of any additional consideration to Roche, any
and all modifications, design changes, or improvements of the Affymetrix
Instruments, such that Affymetrix will have all rights to use, incorporate and
otherwise exploit such modifications, design changes, or improvements in
connection with the Affymetrix Instruments.

(f)            Significant Problems.  Each Party will keep the other Party
informed as to any significant problems encountered with the Affymetrix
Instruments 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 Affymetrix Instruments 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 

 

6

 

time after receiving any
information about problems with the Affymetrix Instruments, inform the other
Party of the steps (if any) that the receiving Party intends to take with
respect to such problems.

(g)           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 Affymetrix Instrument; or (iii) any potential
infringement by an Affymetrix Instrument of any Intellectual Property owned or
asserted to be owned by a Third Party of which it becomes aware.  Either Party’s notice under this Section
V(g) 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.

VII.                         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 prior to early termination.  If Roche terminates effective as of June 2,
2013 or any time thereafter, Affymetrix shall continue to provide Affymetrix
Instruments and related materials as set forth herein through the end of the
year following the date such Early Termination Notice was provided.

(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 Confidential 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 IV (Payments), VII
(Term and Termination), VIII (Warranty), IX (Limited Liability)
and X (Indemnity), all rights to payment in effect through the final
termination date of this Agreement pursuant to Section VII (Term and 

 

7

 

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
Affymetrix Instruments at the time of such termination shall remain in effect,
except that in the case of termination under Section VII(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 due to a breach by Roche, or more than one hundred
eighty (180) days after such termination. 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.

VIII.                     Warranty and Warranty Disclaimers.

Affymetrix warrants only to Roche that the Affymetrix
Instruments will conform in all material respects to Affymetrix’ then-current
standard customer warranty included in Affymetrix’ applicable customer sales
agreement. Such warranty does not apply to units that have been mishandled,
mistreated or used or maintained or stored other than in conformity with Affymetrix’
instructions.  The warranties to Roche
Customers for Affymetrix Instruments distributed shall be as set forth in the
terms and conditions of such sales agreement.

EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT,
AFFYMETRIX DOES NOT WARRANT THE MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE OF THE AFFYMETRIX INSTRUMENTS OR PERFORMANCE OR NON-INFRINGEMENT
THEREOF, DOES NOT MAKE ANY WARRANTY, EXPRESS, IMPLIED OR OTHERWISE, WITH
RESPECT TO AN AFFYMETRIX INSTRUMENT, OR ITS 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.

 

IX.                            Limited Liability.

EXCEPT IN CONNECTION WITH SECTION II
(CONFIDENTIALITY) OF THE COMMON TERMS AGREEMENT OR AMOUNTS PAYABLE UNDER SECTION
VIII (WARRANTY) OR SECTION IX (INDEMNIFICATION) 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.

 

X.                                Indemnity.

(a)           Indemnification by Affymetrix from
Infringement.  Affymetrix shall
indemnify, defend and hold harmless the Roche Indemnitees from and against
liability resulting from any Third Party Claim of infringement of any patent
(other than Roche patents, patents of any Roche 

 

8

 

Affiliate or patents of
Genentech or Chugai) by Affymetrix Technology incorporated into Affymetrix
Instruments, 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; 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; and, provided further,
that Affymetrix will not be responsible for any settlement it does not approve
in writing. The foregoing obligation of Affymetrix does not apply with respect
to Affymetrix Technology used in Affymetrix Instruments: (W) not supplied by
Affymetrix; (X) made in whole or 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 products, processes or materials including Roche Technology,
where the alleged infringement relates to such combination, process or use.  Roche shall indemnify Affymetrix Indemnitees
and its officers, directors, agents and employees from all damages,
settlements, attorneys’ fees and expenses related to a Claim of infringement or
misappropriation excluded from Affymetrix’ indemnity obligation by the
immediately preceding sentence.

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.

(b)           Indemnity Relating to Products.  Affymetrix shall indemnify, defend and hold
harmless the Roche Indemnitees from and against any and all Damages based upon
or arising out of the marketing, sale or use of Affymetrix Instruments,
including product liability, other than Damages caused by the marketing
activities of Roche, including changing labeling, or resulting from breach of
this Agreement. Roche shall indemnify, defend and hold harmless the Affymetrix
Indemnitees from and against all Damages based upon or arising out of the
import, sale or use of Affymetrix Instruments other than as pertains to
Affymetrix Technology as set forth above.

(c)           Conditions of Indemnification.  If either Party proposes to seek
indemnification from the other under the provisions of this Section X,
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 

 

9

 

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.

 

10

 

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 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
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 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
Affymetrix Instruments as set forth in Affymetrix’ current published
preventative maintenance procedures and Affymetrix 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 Affymetrix 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 Affymetrix 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 AFFYMETRIX 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 Affymetrix 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.QuickLinks
 -- Click here to rapidly navigate through this document
  

Exhibit 10.1  

 
  PROMISSORY NOTE    
    

	$12,500	 	Dated: April 30, 2003

        1.    Principal.    FOR VALUE RECEIVED, Nucotec, Inc., a Nevada
corporation ("Maker"), promises to pay to the order of Earl T. Shannon ("Holder"), at the address of
Holder known to Maker or at such other place as Holder may from time to time designate in writing, the principal sum of twelve thousand five hundred dollars ($12,500) (the
"Obligation"), which represents the principal amount to be advanced by Holder to Maker. 

        2.    Interest.    Interest on the unpaid principal amount of the Obligation outstanding from time to time shall
accrue at the annualized rate of ten percent (10%). Computations of interest shall be made on the basis of a 365 day year, and the actual number of days elapsed. 

        3.    Payments.    Maker shall pay to Holder the Obligation in the following manner: 

        (a)   One
payment consisting of principal and interest on the Maturity Date (as defined below). 

        (b)   "Maturity Date" shall mean the date which is one year from the date of this Note. 

        4.    Transaction.    This Note is the promissory note issued by Maker to Holder to evidence a loan. 

        5.    Prepayment.    Maker shall be entitled to prepay this Note prior to the Maturity Date without premium or
penalty. 

        6.    Applications of Payments.    Payments received by Holder pursuant to the terms hereof shall be applied in the
following manner: first, to the payment of all expenses, charges, late payment fees, costs and fees incurred by or payable to Holder and for which Maker is obligated pursuant to the terms of this
Note, second, to the payment of all interest accrued to the date of such payment; and third, to the payment of principal. 

        7.    Events of Default.    The occurrence of any of the following events shall constitute an Event of Default
hereunder 

        (a)   Failure
of Maker to pay the principal and interest upon the Maturity Date; 

        (b)   Failure
of Maker to pay any amount or perform any other obligation under the Agreement; 

        (c)   Maker
shall admit in writing its inability to, or be generally unable to, pay its undisputed debts as such undisputed debts become due; 

        (d)   Maker
shall: (i) apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee, examiner or liquidator of all
or a substantial part of its property, (ii) make a general assignment for the benefit of its creditors, (iii) commence a voluntary case under the United States Bankruptcy Code,
(iv) file a petition seeking to take advantage of any other law relating to bankruptcy, insolvency, reorganization, liquidation, dissolution, arrangement or winding-up, or
composition or readjustment of debts; (v) fail to controvert in a timely and appropriate manner, or acquiesce in writing to, any petition filed against him in an involuntary case under the
United States Bankruptcy Code; or (vi)take any action for the purpose of effecting any of the foregoing; 

        (e)   A
proceeding or case shall be commenced, without the application or consent of Maker, in any court of competent jurisdiction, seeking: (i) its financial
reorganization, liquidation or arrangement, or the composition or readjustment of its debts; (ii) the appointment of a receiver, 

1

 

custodian,
trustee, examiner, liquidator or the like of Maker or of all or any substantial part of its property; or (iii) similar relief in respect of Maker under any law relating to
bankruptcy, insolvency, reorganization or composition or adjustment of debts, and such proceeding or case shall continue undismissed, or an order, judgment or decree approving or ordering any of the
foregoing shall be entered and continue unstayed and in effect, for a period of 30 or more days; or an order for relief against Maker shall be entered in an involuntary case under the United States
Bankruptcy Code; or 

        (f)    A
final judgment or judgments issued by a court of competent jurisdiction for the payment of money in excess of $25,000 in the aggregate (exclusive of judgment amounts
fully covered by insurance where the insurer has admitted liability in respect of such judgment) or in excess of $50,000 in the aggregate (regardless of insurance coverage) shall be rendered by a one
or more governmental persons having jurisdiction against Maker and the same shall not be discharged (or provision shall not be made for such discharge), or a stay of execution of the relevant judgment
shall not be procured, within 30 days from the date of entry of such judgment and Maker shall not, within that 30-day period, or such longer period during which execution of the
same shall have been stayed, appeal from and cause the execution of such judgment to be stayed during such appeal. 

        8.    Remedies; Late Payment Penalty.    Upon the occurrence of an Event of Default and without demand or notice,
Holder may declare the principal amount then outstanding of, and the accrued interest on, the Obligation of Maker to be forthwith due and payable, whereupon such amounts shall be immediately due and
payable without presentment, demand, protest or other formalities of any kind, all of which are hereby expressly waived by Maker and Maker may exercise all rights and remedies available to it under
the Agreement or any succeeding agreement). 

        9.    Waiver.    Maker hereby waives diligence, presentment, protest and demand, notice of protest, dishonor and
nonpayment of this Note and expressly agrees that, without in any way affecting the liability of Maker hereunder, Holder may extend any maturity date or the time for payment of any installment due
hereunder, accept security, release any party liable hereunder and release any security now or hereafter securing this Note. Maker further waives, to the full extent permitted by law, the right to
plead any and all statutes of limitations as a defense to any demand on this Note, or on any deed of trust, security agreement, lease assignment, guaranty or other agreement now or hereafter securing
this Note. 

        10.    Attorneys' Fees; Costs.    Maker agrees to pay to Holder all costs and expenses including attorneys' fees and
costs, incurred by Holder in connection with the negotiation, preparation or execution of the loan and this Note. If this Note is not paid when due or if any Event of Default occurs, Maker promises to
pay all costs of enforcement and collection, including but not limited to, Holder's attorneys' fees, whether or not any action or proceeding is brought to enforce the provisions hereof. 

        11.    Severability.    Every provision of this Note is intended to be severable. In the event any term or provision
hereof is declared by a court of competent jurisdiction, to be illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the balance of the terms and provisions
hereof, which terms and provisions shall remain binding and enforceable. 

        12.    Interest Rate Limitation.    Holder and Maker stipulate and agree that none of the terms and provisions
contained herein or in the Agreement shall ever be construed to create a contract for use, forbearance or detention of money requiring payment of interest at a rate in excess of the maximum interest
rate permitted to be charged by the laws of the State of California. In such event, if any Holder of this Note shall collect monies which are deemed to constitute interest which would otherwise
increase the effective interest rate on this Note to a rate in excess of the maximum rate permitted to be charged by the laws of the State of Nevada, all such sums deemed to constitute interest in
excess of 

2

 

such
maximum rate shall, at the option of Holder, be credited to the payment of the sums due hereunder or returned to Maker. 

        13.    Number and Gender.    In this Note the singular shall include the plural and the masculine shall include the
feminine and neuter gender, and vice versa, if the context so requires. 

        14.    Headings.    Headings at the beginning of each numbered paragraph of this Note are intended solely for
convenience and are not to be deemed or construed to be a part of this Note. 

        15.    Choice of Law.    This Note shall be governed by and construed in accordance with the laws of the State of
California. Any action to enforce this Note shall be brought in state or federal courts located in Orange County, California. 

        16.    Miscellaneous.    

        (a)   All
notices and other communications provided for hereunder shall be in writing and shall be delivered by United States mail, certified or registered, return receipt
requested to the respective party at the address provided in the Agreement or otherwise provided for such purpose. 

        (b)   No
failure or delay on the part of Holder or any other holder of this Note to exercise any right, power or privilege under this Note and no course of dealing between
Maker and Holder shall impair such right, power or privilege or operate as a waiver of any default or an acquiescence therein, nor shall any single or partial exercise of any such right, power or
privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein expressly provided are cumulative to, and not exclusive
of, any rights or remedies, which Holder would otherwise have. No notice to or demand on Maker in any case shall entitle Maker to any other or further notice or demand in similar or other
circumstances or constitute a waiver of the right of Holder to any other or further action in any circumstances without notice or demand. 

        (c)   Maker
and any endorser of this Note hereby consent to renewals and extensions of time at or after the maturity hereof, without notice, and hereby waive diligence,
presentment, protest, demand and notice of every kind. 

        (d)   Maker
may not assign its rights or obligations hereunder without prior written consent of Holder. Subject to compliance with applicable federal and state securities
laws, Holder may (i) assign all or any portion of this Note without the prior consent of Maker or (ii) sell or agree to sell to one or more other persons a participation in all or any
part of the Note without the prior consent of Maker. Upon surrender of the Note, Maker shall execute and deliver one or more substitute notes in such denominations and of a like aggregate unpaid
principal amount or other amount issued to Holder and/or to Holder's designated transferee or transferees. Holder may furnish any information in the possession of Holder concerning Maker, or any of
its respective subsidiaries, from time to time to assignees and participants (including Prospective assignees and participants). 

3

 

        IN
WITNESS WHEREOF, Maker has caused this Note to be duly executed and delivered as of the day and year and at the place first above written. 

	 	 	MAKER:
	

 	
 	

Nucotec, Inc.,

a Nevada corporation
	

 	
 	

 
	 	 	/s/  EARL T. SHANNON      
 BY: Earl T. Shannon

ITS: President
	

 	
 	
CERTIFIED AS AUTHORIZED BY BOARD OF DIRECTORS OF NUCOTEC, INC.:
	

 	
 	

 
	 	 	/s/  STEVEN W. HUDSON      
 BY: Steven W. Hudson

ITS: Secretary
	

 	
 	
HOLDER:
	

 	
 	

Earl T. Shannon
	

 	
 	

 
	 	 	/s/  EARL T. SHANNON      
 Earl T. Shannon, an individual

4

 
 
 

PROMISSORY NOTE    
    

	$12,500	 	Dated: April 30, 2003

        1.    Principal.    FOR VALUE RECEIVED, Nucotec, Inc., a Nevada
corporation ("Maker"), promises to pay to the order of Steven W. Hudson ("Holder"), at the address of
Holder known to Maker or at such other place as Holder may from time to time designate in writing, the principal sum of twelve thousand five hundred dollars ($12,500) (the
"Obligation"), which represents the principal amount to be advanced by Holder to Maker. 

        2.    Interest.    Interest on the unpaid principal amount of the Obligation outstanding from time to time shall
accrue at the annualized rate of ten percent (10%). Computations of interest shall be made on the basis of a 365 day year, and the actual number of days elapsed. 

        3.    Payments.    Maker shall pay to Holder the Obligation in the following manner: 

        (a)   One
payment consisting of principal and interest on the Maturity Date (as defined below). 

        (b)   "Maturity Date" shall mean the date which is one year from the date of this Note. 

        4.    Transaction.    This Note is the promissory note issued by Maker to Holder to evidence a loan. 

        5.    Prepayment.    Maker shall be entitled to prepay this Note prior to the Maturity Date without premium or
penalty. 

        6.    Applications of Payments.    Payments received by Holder pursuant to the terms hereof shall be applied in the
following manner: first, to the payment of all expenses, charges, late payment fees, costs and fees incurred by or payable to Holder and for which Maker is obligated pursuant to the terms of this
Note, second, to the payment of all interest accrued to the date of such payment; and third, to the payment of principal. 

        7.    Events of Default.    The occurrence of any of the following events shall constitute an Event of Default
hereunder 

        (a)   Failure
of Maker to pay the principal and interest upon the Maturity Date; 

        (b)   Failure
of Maker to pay any amount or perform any other obligation under the Agreement; 

        (c)   Maker
shall admit in writing its inability to, or be generally unable to, pay its undisputed debts as such undisputed debts become due; 

        (d)   Maker
shall: (i) apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee, examiner or liquidator of all
or a substantial part of its property, (ii) make a general assignment for the benefit of its creditors, (iii) commence a voluntary case under the United States Bankruptcy Code,
(iv) file a petition seeking to take advantage of any other law relating to bankruptcy, insolvency, reorganization, liquidation, dissolution, arrangement or winding-up, or
composition or readjustment of debts; (v) fail to controvert in a timely and appropriate manner, or acquiesce in writing to, any petition filed against him in an involuntary case under the
United States Bankruptcy Code; or (vi)take any action for the purpose of effecting any of the foregoing; 

        (e)   A
proceeding or case shall be commenced, without the application or consent of Maker, in any court of competent jurisdiction, seeking: (i) its financial
reorganization, liquidation or arrangement, or the composition or readjustment of its debts; (ii) the appointment of a receiver, custodian, trustee, examiner, liquidator or the like of Maker or
of all or any substantial part of its property; or (iii) similar relief in respect of Maker under any law relating to bankruptcy, 

5

 

insolvency,
reorganization or composition or adjustment of debts, and such proceeding or case shall continue undismissed, or an order, judgment or decree approving or ordering any of the foregoing
shall be entered and continue unstayed and in effect, for a period of 30 or more days; or an order for relief against Maker shall be entered in an involuntary case under the United States Bankruptcy
Code; or 

        (f)    A
final judgment or judgments issued by a court of competent jurisdiction for the payment of money in excess of $25,000 in the aggregate (exclusive of judgment amounts
fully covered by insurance where the insurer has admitted liability in respect of such judgment) or in excess of $50,000 in the aggregate (regardless of insurance coverage) shall be rendered by a one
or more governmental persons having jurisdiction against Maker and the same shall not be discharged (or provision shall not be made for such discharge), or a stay of execution of the relevant judgment
shall not be procured, within 30 days from the date of entry of such judgment and Maker shall not, within that 30-day period, or such longer period during which execution of the
same shall have been stayed, appeal from and cause the execution of such judgment to be stayed during such appeal. 

        8.    Remedies; Late Payment Penalty.    Upon the occurrence of an Event of Default and without demand or notice,
Holder may declare the principal amount then outstanding of, and the accrued interest on, the Obligation of Maker to be forthwith due and payable, whereupon such amounts shall be immediately due and
payable without presentment, demand, protest or other formalities of any kind, all of which
are hereby expressly waived by Maker and Maker may exercise all rights and remedies available to it under the Agreement or any succeeding agreement). 

        9.    Waiver.    Maker hereby waives diligence, presentment, protest and demand, notice of protest, dishonor and
nonpayment of this Note and expressly agrees that, without in any way affecting the liability of Maker hereunder, Holder may extend any maturity date or the time for payment of any installment due
hereunder, accept security, release any party liable hereunder and release any security now or hereafter securing this Note. Maker further waives, to the full extent permitted by law, the right to
plead any and all statutes of limitations as a defense to any demand on this Note, or on any deed of trust, security agreement, lease assignment, guaranty or other agreement now or hereafter securing
this Note. 

        10.    Attorneys' Fees; Costs.    Maker agrees to pay to Holder all costs and expenses including attorneys' fees and
costs, incurred by Holder in connection with the negotiation, preparation or execution of the loan and this Note. If this Note is not paid when due or if any Event of Default occurs, Maker promises to
pay all costs of enforcement and collection, including but not limited to, Holder's attorneys' fees, whether or not any action or proceeding is brought to enforce the provisions hereof. 

        11.    Severability.    Every provision of this Note is intended to be severable. In the event any term or provision
hereof is declared by a court of competent jurisdiction, to be illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the balance of the terms and provisions
hereof, which terms and provisions shall remain binding and enforceable. 

        12.    Interest Rate Limitation.    Holder and Maker stipulate and agree that none of the terms and provisions
contained herein or in the Agreement shall ever be construed to create a contract for use, forbearance or detention of money requiring payment of interest at a rate in excess of the maximum interest
rate permitted to be charged by the laws of the State of California. In such event, if any Holder of this Note shall collect monies which are deemed to constitute interest which would otherwise
increase the effective interest rate on this Note to a rate in excess of the maximum rate permitted to be charged by the laws of the State of Nevada, all such sums deemed to constitute interest in
excess of such maximum rate shall, at the option of Holder, be credited to the payment of the sums due hereunder or returned to Maker. 

6

 

        13.    Number and Gender.    In this Note the singular shall include the plural and the masculine shall include the
feminine and neuter gender, and vice versa, if the context so requires. 

        14.    Headings.    Headings at the beginning of each numbered paragraph of this Note are intended solely for
convenience and are not to be deemed or construed to be a part of this Note. 

        15.    Choice of Law.    This Note shall be governed by and construed in accordance with the laws of the State of
California. Any action to enforce this Note shall be brought in state or federal courts located in Orange County, California. 

        16.    Miscellaneous.    

        (a)   All
notices and other communications provided for hereunder shall be in writing and shall be delivered by United States mail, certified or registered, return receipt
requested to the respective party at the address provided in the Agreement or otherwise provided for such purpose. 

        (b)   No
failure or delay on the part of Holder or any other holder of this Note to exercise any right, power or privilege under this Note and no course of dealing between
Maker and Holder shall impair such right, power or privilege or operate as a waiver of any default or an acquiescence therein, nor shall any single or partial exercise of any such right, power or
privilege preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein expressly provided are cumulative to, and not exclusive
of, any rights or remedies, which Holder would otherwise have. No notice to or demand on Maker in any case shall entitle Maker to any other or further notice or demand in similar or other
circumstances or constitute a waiver of the right of Holder to any other or further action in any circumstances without notice or demand. 

        (c)   Maker
and any endorser of this Note hereby consent to renewals and extensions of time at or after the maturity hereof, without notice, and hereby waive diligence,
presentment, protest, demand and notice of every kind. 

        (d)   Maker
may not assign its rights or obligations hereunder without prior written consent of Holder. Subject to compliance with applicable federal and state securities
laws, Holder may (i) assign all or any portion of this Note without the prior consent of Maker or (ii) sell or agree to sell to one or more other persons a participation in all or any
part of the Note without the prior consent of Maker. Upon surrender of the Note, Maker shall execute and deliver one or more substitute notes in such denominations and of a like aggregate unpaid
principal amount or other amount issued to Holder and/or to Holder's designated transferee or transferees. Holder may furnish any information in the possession of Holder concerning Maker, or any of
its respective subsidiaries, from time to time to assignees and participants (including Prospective assignees and participants). 

7

 

        IN
WITNESS WHEREOF, Maker has caused this Note to be duly executed and delivered as of the day and year and at the place first above written. 

	 	 	MAKER:
	

 	
 	

Nucotec, Inc.,

a Nevada corporation
	

 	
 	

 
	 	 	/s/  EARL T. SHANNON      
 BY: Earl T. Shannon

ITS: President
	

 	
 	
CERTIFIED AS AUTHORIZED BY BOARD OF DIRECTORS OF NUCOTEC, INC.:
	

 	
 	

 
	 	 	/s/  STEVEN W. HUDSON      
 BY: Steven W. Hudson

ITS: Secretary
	

 	
 	
HOLDER:
	

 	
 	

Earl T. Shannon
	

 	
 	

 
	 	 	/s/  EARL T. SHANNON      
 Earl T. Shannon, an individual

8

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