Document:

EX. 10.5 License Agreement dated June 13, 2014

***Text Omitted and Filed Separately with the Securities and Exchange Commission. Confidential Treatment Requested Under  17 C.F.R. Sections 200.80(b)(4) and 240.24b-2
LICENSE AGREEMENT
THIS LICENSE AGREEMENT (this “Agreement”) dated as of June 13, 2014 (the “Effective Date”), is entered into between SEQUENOM, INC., a Delaware corporation (“Sequenom”), having a place of business at 3595 John Hopkins Court, San Diego, California 92121, and QUEST DIAGNOSTICS INCORPORATED, a Delaware corporation (“Quest Diagnostics”), having a place of business at 3 Giralda Farms, Madison, New Jersey 07940.  The parties hereby agree as follows:
1.DEFINITIONS.
For purposes of this Agreement, the terms defined in this Section 1 shall have the respective meanings set forth below:
1.“Affiliate” shall mean, with respect to a party, any Person that controls or is controlled by such party, or is under common control with such party.  For purposes of this definition, a Person shall be deemed to control another Person if it owns or controls, directly or indirectly, more than thirty three percent (33%), or such lesser percentage as is the maximum allowed to be owned by a foreign Person in a particular jurisdiction, of the voting equity of the other Person (or other comparable interest for an entity other than a corporation).
2.“Annual Period” shall mean each of (a) the period commencing on the date of the First Commercial Sale and ending on the last day of the twelfth (12th) consecutive full calendar month thereafter, and (b) each period commencing on the first day after the end of the prior Annual Period and ending on the last day of the twelfth (12th) consecutive full calendar month thereafter.
3.“BU” shall mean the Trustees of Boston University.
4.“BU Agreement” shall mean the Amended and Restated License Agreement dated as of April 1, 2013, between BU and Sequenom (as amended or restated from time to time).
5.“cGMP” means current good manufacturing practices detailed in the United States Current Good Manufacturing Practices (21 CFR 200, 211 and 600).
6.“Challenge” shall mean, with respect to any patent rights, directly, (a) to assert in any filing with any court, patent office or other competent governmental authority that such patent rights are invalid or unenforceable, (b) to expressly in writing oppose the issuance of, or to challenge or seek to narrow the issued or applied for claims, scope or duration of, any claim of such patent rights, (c) to file for a declaratory judgment or similar relief that any product or service does not infringe any such patent rights or is licensed or otherwise authorized under this Agreement or otherwise, (d) to file for, or expressly in writing request,  the declaration, initiation or continuation of an interference or derivative proceeding, opposition, reexamination, post-grant review or inter partes review (or their equivalents) of such patent rights, or (e) to intentionally assist or cooperate with any other Person to do any of the foregoing; but expressly excluding providing testimony or documents solely to the extent required by a duly authorized order of any court, patent office or other governmental authority of competent jurisdiction.
7.“CLIA” shall mean the United States Clinical Laboratory Improvement Amendments of 1988 (as amended from time to time).
8.“Combination Service” means a Service that is sold together in combination with one (1) or more diagnostic processes or services which are not Services.
9.“Commercially Reasonable Efforts” shall mean the level of efforts and resources  typically devoted by other well-reputed prenatal diagnostic and/or screening test service providers (including, without limitation, providers of protein serum screening, karyotyping, QFPCR, FISH, etc. services) to similar diagnostic products and services.

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10.“Confidential Information” shall mean all information and data that (a) is provided by one party to the other party pursuant to this Agreement, and (b) if disclosed in writing or other tangible medium is marked or identified as confidential at the time of disclosure to the recipient, is acknowledged at the time of disclosure to be confidential, or otherwise should reasonably be deemed to be confidential.  Notwithstanding the foregoing, Confidential Information of a party shall not include that portion of such information and data which, and only to the extent, the recipient can establish by written documentation: (i) is known to the recipient as evidenced by its written records before receipt thereof from the disclosing party, (ii) is disclosed to the recipient free of confidentiality obligations by a third person who has the right to make such disclosure, (iii) is or becomes part of the public domain through no fault of the recipient, or (iv) the recipient can reasonably establish is independently developed by persons on behalf of recipient without access to or use of the information disclosed by the disclosing party.
11.“CUHK” shall mean the Chinese University of Hong Kong.
12.“CUHK Agreement” shall mean the License Agreement dated September 16, 2008, between CUHK and Sequenom (as amended or restated from time to time).
13.“Facilities” shall mean the CLIA laboratories at the facilities of Quest Diagnostics or its Affiliates located in the Territory specifically identified on Schedule 1.13, which may be amended from time to time by Quest Diagnostics in writing with the prior written consent of Sequenom, which consent shall not be unreasonably withheld.
14.“FCPA” shall mean the United States Foreign Corrupt Practices Act of 1977, as amended.
15.“Field” shall mean the non-invasive detection and diagnosis of prenatal aneuploidy and fetal abnormalities by use of cell-free fetal nucleic acids from biological samples (including plasma, serum, whole blood and urine) obtained from pregnant women.
16.“First Commercial Sale” shall mean the first sale of a Service by Quest Diagnostics to customers who are not Affiliates.
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18.“Isis” shall mean Isis Innovation Limited.
19.“Isis Agreement” shall mean the Agreement made on October 14, 2005, between Isis and Sequenom (as amended or restated from time to time).
20.“License Supported Patent Rights” shall mean, collectively, (a) all patent applications (including provisional patent applications) heretofore or hereafter filed in the world; (b) all patents that have issued or in the future issue in the world from any of such patent applications, including without limitation utility models, design patents and certificates of invention; and (c) all divisionals, continuations, continuations-in-part, substitutions, reissues, renewals, extensions, restorations or additions to any such patent applications and patents, in each case that (i) use or are supported by data and information derived from the use of the Licensed Patent Rights or (ii) use or are supported by data and information that are derived from the Validation Samples.
21.“Licensed Patent Rights” shall mean, collectively, Sequenom’s rights in (a) all patent applications (including provisional patent applications) heretofore or hereafter filed in the Territory; (b) all patents that have issued or in the future issue in the Territory from any of such patent applications, including without limitation utility models, design patents and certificates of invention; and (c) all divisionals, continuations, continuations-in-part, substitutions, reissues, renewals, extensions, restorations or additions to any such patent applications and patents, in each case of clause (a) through (c) that claim, and only to the extent they claim, compositions, uses, methods, equipment, devices and other technology for the use of cell-free fetal nucleic acids from biological samples (including plasma, serum, whole blood and urine) obtained from pregnant women for prenatal diagnostic testing by whole genome massively parallel sequencing, used in the performance of the MaterniT21 PLUS Test by Sequenom Laboratories as of the Effective Date, or any improvements to such test; provided, however, that the Licensed Patent Rights shall exclude any of the foregoing licensed by BU to Sequenom under the BU Agreement.  The 

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Licensed Patent Rights, as of the Effective Date, are the patent applications and patents listed on Exhibit A.  Any additions to the Licensed Patent Rights after the Effective Date shall be Licensed Patent Rights hereunder, regardless of whether such Exhibit A has been amended.
22.“MaterniT21 PLUS Test” shall mean the laboratory-developed test for the non-invasive testing of a plasma sample from a pregnant woman for the detection and diagnosis of prenatal aneuploidy and/or fetal abnormalities by use of cell-free fetal nucleic acids, currently known as the MaterniT21 PLUS test, as performed by Sequenom Laboratories.
23.“Net Sales” shall mean:
(i)with respect to Services sold or performed individually, the sum of (a) the gross sales of Client-Billed Tests; (b) the gross sales of Patient-Billed Tests [...***...]; and (c) the number of Third Party-Billed Tests multiplied by the Average Weighted Reimbursement; and
(ii)with respect to Combination Services, the sum of (a) the gross sales of Client-Billed Tests; (b) the gross sales of Patient-Billed Tests [...***...]; and (c) the number of Third Party-Billed Tests multiplied by the Average Weighted Reimbursement, multiplied by the fraction A/A+B, where A is the list price of the Service sold separately during the royalty period in question, and B is the list price of the other included diagnostic processes or services which are not Services.
For purposes of this Section 1.23, “Client-Billed Tests” are those Reportable Results which are billed directly to physicians and physician groups; “Patient-Billed Tests” are those Reportable Results which are billed directly to patients; “Third Party-Billed Tests” are those Reportable Results which are billed directly to Medicare, Medicaid, Managed Care Fee-For-Service and Private Insurance; “[...***...]” means [...***...]** ***Confidential Treatment Requested of gross sales; and “Average Weighted Reimbursement” means the rolling three month average reimbursement (including denials) broken down by Service and by Third Party.”
24.“Person” shall mean an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company, joint venture, pool, syndicate, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed herein.
25.“Reportable Result” shall mean the results of a Service that are (a) performed on behalf of a single patient from one or more Samples from such patient, (b) provided to such patient, its health care providers or payors, (c) intended to become part of the medical records of such patient, and (d) for use in the Field.
26.“Regulatory Approvals” shall mean all licenses, permits, authorizations and approvals of, and all registrations, filings and other notifications to, any governmental or regulatory authority in the Territory that are necessary (a) to develop and perform the Services solely at the Facilities, or (b) to use, offer for sale and sell to Third Parties the Services solely in the Territory.
27.“Royalty Term” shall mean the period beginning on the date of the First Commercial Sale and continuing for the term for which a Valid Claim remains in effect and would be infringed by such Valid Claim in an issued patent, or covered by such Valid Claim of a pending patent application, by the performance of the Services at the Facility or the use, offer for sale or sale of the Service in the Territory.
28.“Sample” shall mean a biological sample (including plasma, serum, whole blood and urine) obtained (i) by a duly licensed or authorized physician or other healthcare professional located in the Territory and (ii) from a pregnant human patient located in the Territory, in the case of (i) and (ii), to the [...***...].
29.“Services” shall mean a laboratory-developed test at a Facility for the non-invasive testing of a Sample for use in the Field and the provision of a Reportable Result therefrom which, if performed, used, offered for sale or sold in the Territory, would infringe a Valid Claim but for the license granted by this Agreement.

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30.“Sequenom In-Licenses” shall mean each license, sublicense or other agreement under which Sequenom has acquired, or hereafter acquires, rights to the Licensed Patent Rights.  The Sequenom In-Licenses, as of the Effective Date, are listed on Schedule 1.30 hereto, as such Schedule 1.30 may be updated from time-to-time by Sequenom.
31.“Territory” shall mean the United States of America and its territories, Mexico, Canada and India.
32.“Third Party” shall mean any Person other than Sequenom, Quest Diagnostics and their respective Affiliates.
33.“Third Party Royalties” shall mean any royalties actually paid by Quest Diagnostics to any Third Party in consideration for a license under any issued patent in the Territory owned by such Third Party that is necessary for Quest Diagnostics to exercise its license rights hereunder (a) to perform the Services solely at the Facilities, or (b) to use, offer for sale and sell to Third Parties the Services solely in the Territory, in each case solely to the extent such issued patent would be infringed by the performance of the MaterniT21 PLUS Test by Sequenom Laboratories as of the Effective Date, or any improvements by Sequenom to the MaterniT21 PLUS Test in the future.
34.“Valid Claim” shall mean either (a) a claim of an issued and unexpired patent included within the Licensed Patent Rights which has not been held revoked, unenforceable or invalid by a decision of a court or other governmental agency of competent jurisdiction, unappealable or unappealed within the time allowed for appeal, and which has not been admitted to be invalid or unenforceable through reissue or disclaimer or otherwise, or (b) a claim of a pending patent application included within the Licensed Patent Rights which claim was filed in good faith and has not been abandoned or finally disallowed without the possibility of appeal or refiling of such application.
35.“Validation Parallel Run Samples” shall mean approximately [...***...]** ***Confidential Treatment Requested biological samples to be provided to Sequenom by Quest Diagnostics to perform the Validation Parallel Run as specified in Section 3.4.2 below.
36.“Validation Samples” shall mean approximately (but not to exceed) [...***...] abnormal biological samples, that comprise a representative subset of the total samples, that Sequenom used to validate the MaterniT21 PLUS Test, and including samples that are representative of the content that is identified in the latest version of the MaterniT21 PLUS Test immediately prior to the anticipated First Commercial Sale.
2.REPRESENTATIONS AND WARRANTIES.
1.By Each Party.  Each party represents and warrants to the other party as follows:
1.Organization.  Such party is duly organized, validly existing and in good standing under the laws of the jurisdiction in which it is organized.
2.Authorization and Enforcement of Obligations.  Such party (a) has the requisite power and authority and the legal right to enter into this Agreement and to perform its obligations hereunder; and (b) has taken all requisite action on its part to authorize the execution and delivery of this Agreement and the performance of its obligations hereunder.  This Agreement has been duly executed and delivered on behalf of such party, and constitutes a legal, valid, binding obligation, enforceable against such party in accordance with its terms.
3.Consents.  All necessary consents, approvals and authorizations of all governmental authorities and other persons or entities required to be obtained by such party in connection with this Agreement have been obtained.
4.No Conflict.  To each party’s actual knowledge, the execution and delivery of this Agreement and the performance of such party’s obligations hereunder (a) do not conflict with or violate any requirement of applicable laws, regulations or orders of governmental bodies; and (b) do not conflict with, or constitute a default under, any contractual obligation of such party.
2.By Sequenom.  Sequenom represents and warrants to Quest Diagnostics, as of the Effective Date, as follows:

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1.Licensed Patent Rights.  Sequenom has the necessary rights in the Licensed Patent Rights to make the license grant set forth in Section 3.1 below and to perform its obligations as set forth in this Agreement.  Other than as disclosed by Sequenom prior to the Effective Date, Sequenom has not received written notice of any claim or threat of a claim by a Third Party that (a) the performance of the MaterniT21 PLUS Test by Sequenom Laboratories as of the Effective Date infringes one or more claims of an unlicensed issued patent owned or controlled by a Third Party, or (b) one or more of the Licensed Patent Rights is invalid.
2.BU Patent Rights.  No patent rights licensed by BU to Sequenom pursuant to the BU Agreement are required to permit the performance by Sequenom Laboratories of the MaterniT21 PLUS Test, as performed as of the Effective Date.
3.By Quest Diagnostics.  Quest Diagnostics represents and warrants to Sequenom, as of the Effective Date and at all times during the term of this Agreement, that it will not market the Services outside of the Territory.
4.DISCLAIMER OF WARRANTIES.  EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, SEQUENOM MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED, REGARDING THE LICENSED PATENT RIGHTS OR ANY OTHER MATTER, INCLUDING WITHOUT LIMITATION, ANY REPRESENTATION OR WARRANTY REGARDING VALIDITY, ENFORCEABILITY, MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NONINFRINGEMENT.
3.license.
1.License Grant to Quest Diagnostics.  On the terms and conditions of this Agreement, Sequenom hereby grants to Quest Diagnostics a royalty-bearing, non-exclusive license (without the right to grant or authorize sublicenses) under the Licensed Patent Rights (a) to develop and perform the Services solely at the Facilities, and (b) to use, and offer for sale and sell the Services to Third Parties solely in the Territory.  Except as expressly set forth in this Agreement, Quest Diagnostics shall not use (or purportedly grant or authorize any other Person to use) the Licensed Patent Rights for any other use.
2.License Grantback to Sequenom.  Quest Diagnostics hereby grants to Sequenom a royalty-free, perpetual, irrevocable, nonexclusive, worldwide license (with the right to grant sublicenses) under the License Supported Patent Rights for use in the Field.
3.No Implied Licenses.  Only licenses and rights expressly granted herein shall be of legal force and effect.  No license or other right shall be created hereunder by implication, estoppel or otherwise.
4.Provision of Validation Samples and Validation Parallel Run Samples.
1.Validation Samples.  In connection with the activities contemplated by this Agreement, Sequenom shall provide to Quest Diagnostics the Validation Samples.  Except as otherwise set forth in this Agreement, all Validation Samples shall be and remain the sole property of Sequenom, and Quest Diagnostics shall use the Validation Samples solely in furtherance of the activities expressly contemplated by this Agreement, shall not use or transfer the Validation Samples to or for the benefit of any Third Party without the prior express written consent of Sequenom, and shall use the Validation Samples in compliance with all applicable laws and regulations.  Sequenom will provide its results for these Validation Samples at [...***...]** ***Confidential Treatment Requested (“Validation Sample Data”), so that a comparison of results can be made for cross-validation between the MaterniT21 PLUS Test and the Service.  Sequenom represents and warrants that it is not aware of any circumstance, including but not limited to any restrictions placed on the use of the Validation Samples by any institutional review boards, that would prevent it from transferring the Validation Samples to Quest Diagnostics for the purposes described in this Agreement.  Sequenom will provide the Validation Samples to Quest Diagnostics according to the terms of this Agreement and be solely responsible for the proper delivery and transport of the Validation Samples to Quest Diagnostics in compliance with all applicable international, federal, state 

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and local laws, regulations, and standards for the shipment and transportation of biological specimens from their point of origin to Quest Diagnostics’ laboratory in San Juan Capistrano, California.
2.Validation Parallel Run Samples.  Quest Diagnostics shall provide to Sequenom the Validation Parallel Run Samples at no charge to Sequenom.  Except as otherwise set forth in this Agreement, all Validation Parallel Run Samples shall be and remain the sole property of Quest Diagnostics, and Sequenom shall use the Validation Parallel Run Samples solely for purposes of conducting a parallel run of the MaterniT21 PLUS Test to cross-validate the Service (“Validation Parallel Run”), and Sequenom shall not use or transfer the Validation Parallel Run Samples to or for the benefit of any Third Party without the prior express written consent of Quest Diagnostics, and shall use the Validation Parallel Run Samples in compliance with all applicable laws and regulations.  Sequenom will provide its results for these Validation Parallel Run Samples (the “Validation Parallel Run Data”) to Quest Diagnostics at [...***...], and such results shall be the sole property of Quest Diagnostics.  Quest Diagnostics represents and warrants that it is not aware of any circumstance, including but not limited to any restrictions placed on the use of the Validation Parallel Run Samples by any institutional review boards, that would prevent it from transferring the Validation Parallel Run Samples to Sequenom for the purposes described in this Agreement.  Quest Diagnostics will provide the Validation Parallel Run Samples to Sequenom according to the terms of this Agreement and be solely responsible for the proper delivery and transport of the Validation Parallel Run Samples to Sequenom in compliance with all applicable international, federal, state and local laws, regulations, and standards for the shipment and transportation of biological specimens from their point of origin to Sequenom’s laboratory in San Diego, California.
3.Sequenom shall invoice Quest Diagnostics for (i) a processing and handling fee of [...***...]** ***Confidential Treatment Requested per sample for processing and providing each Validation Sample provided to Quest Diagnostics hereunder, and (ii) a services fee of [...***...] per each MaterniT21 PLUS Test run on each Validation Parallel Run Sample, and Quest Diagnostics shall pay the amounts so invoiced within [...***...] days after the date of such invoice.
4.Quest Diagnostics shall have the right to use the Validation Sample Data, the Validation Parallel Run Data, and any data, information or other results derived from use of the Validation Sample Data, Validation Parallel Run Data and/or Validation Samples (collectively, “Data”) solely for the purpose of exercising its license rights under this Agreement during the term of this Agreement, and shall not use (or authorize or permit the use of) any of the foregoing for any other purpose.  Notwithstanding the foregoing, Quest Diagnostics shall have the right to continue to use the Data (i) upon expiration of the Agreement and (ii) upon termination of the Agreement for uncured breach of the Agreement by Sequenom.  In addition, any data sets among the Data which are published into the public domain (without violating the terms of this Agreement) by either party shall no longer be Confidential Information hereunder and Quest Diagnostics shall have the right to use such data sets for any purpose.
5.EXCEPT AS OTHERWISE SPECIFIED IN THIS SECTION 3.4, THE VALIDATION SAMPLES AND VALIDATION PARALLEL RUN SAMPLES ARE PROVIDED “AS IS” AND WITHOUT ANY REPRESENTATION OR WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTY OF MERCHANTABILITY OR OF FITNESS FOR ANY PARTICULAR PURPOSE OR ANY WARRANTY THAT THE USE OF THE VALIDATION SAMPLES WILL NOT INFRINGE OR VIOLATE ANY PATENT OR OTHER PROPRIETARY RIGHTS OF ANY THIRD PARTY.
4.financial terms.
1.Royalties.
1.Calculation of Royalties.  Subject to the terms and conditions of this Agreement, during the Royalty Term, Quest Diagnostics shall pay to Sequenom royalties equal to the greater of (a) [...***...] of Net Sales of each Reportable Result, or (b) [...***...] per each Reportable 

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Result (the “Royalty”).  The Royalty amount specified in clause (b) above shall remain the same for the first five  (5) years of this Agreement, after which period, the Royalty amount specified in clause (b) above shall increase one time per Annual Period by a percentage equal to the increase in the Consumer Price Index for All Urban Consumers (CPI-U), All Items (as published by the United States Department of Labor, Bureau of Labor Statistics) (“CPI”) for the most recent twelve (12) months for which data is then available, beginning with the start of the sixth Annual Period, and continuing thereafter on the start of each Annual Period thereafter.  In no event shall the Royalty amount specified in clause (b) above increase in any Annual Period by more than [...***...]** ***Confidential Treatment Requested
2.Third Party Royalties.  If Quest Diagnostics is required to pay any Third Party Royalties [...***...] for the sale of Services in any country in the Territory in any calendar quarter, then Quest Diagnostics shall have the right to deduct the amount of such Third Party Royalties from the amount of the Royalty (if any) owing to Sequenom under Section 4.1.1 for the sale of such Services in such country in the Territory in such calendar quarter; royalty payments due Sequenom (if applicable) for that specific Service; provided, however, that Quest Diagnostics shall not reduce the amount of the Royalties owing under Section 4.1.1 for the sale of such Services in such country in the Territory in such calendar quarter, by reason of the application of this Section 4.1.2 by more than [...***...] of the amount of the Royalties that would have been owing under Section 4.1.1 for the sale of such Services in such country in the Territory in such calendar quarter before giving effect to the application of this Section 4.1.2.
2.Royalty Reports.
1.Within thirty (30) days following the First Commercial Sale of a Service in the Territory, Quest Diagnostics shall give written notice to Sequenom thereof.
2.Within sixty (60) days after the end of each calendar quarter following the First Commercial Sale of a Service in the Territory by Quest Diagnostics, Quest Diagnostics shall prepare and provide Sequenom with a written report showing in reasonably specific detail, (a) the number of sales of each Service, and gross sales of each Service sold by Quest Diagnostics during such calendar quarter and the calculation of Net Sales from such gross sales; and (b) the calculation of the Royalties, if any, which shall have accrued based upon such number of sold Services or Net Sales, as applicable.
3.All royalties shown to have accrued by each royalty report provided under this Section 4.2 shall be payable on the date such royalty report is due.  Payment of royalties in whole or in part may be made in advance of such due date.
3.Records and Audits.
1.Quest Diagnostics shall keep complete and accurate records in sufficient detail to properly reflect all gross sales and Net Sales, and the number of Services sold to enable the royalties payable to be determined.
2.Upon the written request of Sequenom and not more than once in each calendar year, Quest Diagnostics shall permit an independent certified public accounting firm, selected by Sequenom and reasonably acceptable to Quest Diagnostics, at Sequenom’s expense, to have access during normal business hours to such records of Quest Diagnostics as may be reasonably necessary to verify the accuracy of the royalty reports hereunder for any year ending not more than thirty-six (36) months prior to the date of such request.  The accounting firm shall disclose to Sequenom whether the reports are correct and the specific details of any discrepancies.  If such accounting firm concludes that additional royalties were owed during the audited period, Quest Diagnostics shall pay such additional royalties within thirty (30) days of the date Sequenom delivers to Quest Diagnostics such accounting firm’s written report so concluding.  The fees charged by such accounting firm shall be paid by Sequenom; provided, however, if the audit discloses that the aggregate royalties payable by Quest Diagnostics for such period are greater than [...***...]** ***Confidential Treatment Requested and more than [...***...] of the royalties actually paid for such period, then Quest Diagnostics shall pay the reasonable fees and expenses charged by such accounting firm.  Sequenom shall treat all financial information subject to review under this Section 4.3 as 

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confidential, and shall cause its accounting firm to retain all such financial information in confidence.  If such accounting firm concludes that Quest Diagnostics paid more in royalties hereunder than were actually owed, any such overage amount shall be credited to Quest Diagnostics against future royalty amounts which may accrue, or if the Agreement is terminated or expires before such credit is expended, shall be reimbursed to Quest Diagnostics within thirty (30) days of such termination or expiration.
3.Sequenom shall treat all financial information subject to review under this Article 4 as Confidential Information pursuant to Article 6.1 below, and shall cause its accounting firm to retain all such financial information in confidence.
4.Payment Method.  All payments by Quest Diagnostics to Sequenom hereunder shall be in United States dollars in immediately available funds and shall be made by wire transfer from a United States bank located in the United States to such bank account as designated from time to time by Sequenom to Quest Diagnostics.
5.development AND COMMERCIALIZATION.
1.Responsibility.  As between the parties, Quest Diagnostics shall be solely responsible, at its sole expense, for developing, obtaining and maintaining any and all applicable Regulatory Approvals for, promoting, marketing, selling and commercializing Services in the Field in the Territory on the terms and conditions of this Agreement.
2.Diligence.  Quest Diagnostics shall use Commercially Reasonable Efforts (a) to develop and obtain any and all applicable Regulatory Approvals for Services in the Field in the Territory, and (b) following such Regulatory Approvals, to promote, market, sell and commercialize Services in the Field in the Territory.  Without limiting the generality of the foregoing, Quest Diagnostics shall achieve First Commercial Sale of Services in the Field in the Territory not later than [...***...] months after the Effective Date.
3.Branding and Marking.  Quest Diagnostics shall market and commercialize Services under the name of Quest Diagnostics as the selling party, and shall not in any way create any impression that Sequenom is the seller of Services commercialized by Quest Diagnostics pursuant to this Agreement; provided, however, that Quest Diagnostics may acknowledge the use of include Sequenom’s Licensed Technology in marketing materials used by Quest Diagnostics as may be mutually agreed by the parties in writing prior to creation or use of any marketing materials or any other commercial activities by Quest Diagnostics with respect to Services.  Quest Diagnostics shall mark or otherwise identify all Services as required by applicable patent laws and shall include a reference that the Services are covered by the Licensed Patent Rights.
4.Compliance with Applicable Laws.  Quest Diagnostics shall conduct all of its activities in connection with this Agreement (including, without limitation, developing, obtaining any and all applicable Regulatory Approvals, promoting, marketing, performing, selling and commercializing Services) in accordance with all applicable laws, rules and regulations, cGMP and the highest professional standards.
6.Patent Rights.
1.Prosecution and Maintenance.  As between the parties, Sequenom shall have the sole right, at its sole expense, to prepare, file, prosecute and maintain Licensed Patent Rights, and Quest Diagnostics shall have the sole right, at its sole expense, to prepare, file, prosecute and maintain License Supported Patent Rights.  Each party shall have the right to prepare, prosecute and maintain such patent rights, including without limitation the right to abandon claims, patent applications or patents, as it determines in its sole discretion.
2.Enforcement.  As between the parties, Sequenom shall have the sole right, at its expense, to enforce the Licensed Patent Rights, and Quest Diagnostics shall have the sole right, at its expense, to enforce the License Supported Patent Rights.

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7.CONFIDENTIALITY.
1.Confidentiality.  During the term of this Agreement and for a period of five (5) years following the expiration or earlier termination hereof, each party shall maintain in confidence the Confidential Information of the other party, shall not use or grant the use of the Confidential Information of the other party except as expressly permitted hereby, and shall not disclose the Confidential Information of the other party except on a need-to-know basis to such party’s directors, officers, employees and consultants, to the extent such disclosure is reasonably necessary in connection with such party’s activities as expressly authorized by this Agreement.  To the extent that disclosure to any person is authorized by this Agreement, prior to disclosure, a party shall obtain written agreement of such person to hold in confidence and not disclose, use or grant the use of the Confidential Information of the other party except as expressly permitted under this Agreement.  Each party shall notify the other party promptly upon discovery of any unauthorized use or disclosure of the other party’s Confidential Information.
2.Terms of Agreement.  Neither party shall disclose any terms or conditions of this Agreement to any third party without the prior consent of the other party; provided, however, that a party may disclose the terms or conditions of this Agreement, (a) on a need-to-know basis to its legal and financial advisors to the extent such disclosure is reasonably necessary, and (b) to a third party in connection with (i) an equity investment in such party, (ii) a merger, consolidation or similar transaction by such party, or (iii) the sale of all or substantially all of the assets of such party.  Notwithstanding the foregoing, prior to execution of this Agreement, the parties have agreed in writing upon a press release to be jointly issued by the parties (the “Press Release”), and such Press Release, or excerpts therefrom,  may be used as needed to describe the terms and conditions of this transaction without the prior consent of the other party.
3.Permitted Disclosures.  The confidentiality obligations under this Section 7 shall not apply to the extent that a party is required to disclose information by applicable law, regulation, court or administrative order or rules of a stock exchange or automated quotation system (in each case as determined by such party’s legal counsel); provided, however, that such party shall provide advanced written notice thereof to the other party, consult with the other party with respect to such disclosure and provide the other party sufficient opportunity to object to any such disclosure or to request confidential treatment thereof (if applicable).
4.Equitable Relief.  Each party hereby acknowledges and agrees that, in the event of any breach or threatened breach of this Section 7 by a party, the disclosing party may suffer irreparable injury for which damages at law may not be an adequate remedy.  Accordingly, without prejudice to any other rights and remedies otherwise available to the disclosing party, the disclosing party shall be entitled to seek equitable relief, including injunctive relief and specific performance, for any breach or threatened breach of this Section 7 by such other party, its Affiliates, or any of its or their employees, directors, officers, members, agents, or representatives.
5.Non-Use of Names.  Except as expressly permitted in this Agreement, neither party shall make any public announcement, issue any press release or publish any study (collectively, all such communications, “Publication”) which includes the name of the other party or any of its Affiliates, or otherwise use the name or names of the other party or any of their employees or any adaptation, abbreviation or derivative of any of them, without the prior written permission of such other party, except as may be required by applicable law, regulation, court or administrative order or rules of a stock exchange or automated quotation system (in each case as determined by such party’s legal counsel).
8.indemnification AND INSURANCE.
1.Indemnification.
1.By Quest Diagnostics.  Quest Diagnostics shall indemnify and hold harmless Sequenom, its Affiliates and its and their respective directors, officers, employees and agents, from and against all losses, liabilities, damages and expenses, including reasonable attorneys’ fees and costs (collectively, “Losses”), resulting from any claims, demands, actions or other proceedings by any 

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Third Party to the extent resulting from (a) the breach of any representation, warranty or covenant by Quest Diagnostics under this Agreement; (b) the use of the Licensed Patent Rights by Quest Diagnostics; or (c) the development, performance, promotion, marketing, offering for sale, sale or other commercialization of Services, except to the extent such Losses arise out of the negligence or willful misconduct of Sequenom, or any acts or omissions of Sequenom which are a breach of this Agreement.
2.By Sequenom.  Sequenom shall indemnify and hold harmless Quest Diagnostics, its Affiliates and its and their respective directors, officers, employees and agents, from and against all Losses, other than Third Party Royalties which shall be governed by Section 4.1.2 above, resulting from any claims, demands, actions or other proceedings by any Third Party to the extent resulting from (a) the breach of any representation, warranty or covenant by Sequenom under this Agreement, except to the extent such Losses arise out of the negligence or willful misconduct of Quest Diagnostics, or any acts or omissions of Quest Diagnostics which are a breach of this Agreement, or (b) any legal action in a court of competent jurisdiction in the United States [...***...], by Quest Diagnostics’ exercise of the Licensed Patent Rights (i) to perform the Services solely at the Facility, or (ii) to use, offer for sale and sell to Third Parties the Services solely in the Territory, in each case solely to the extent such [...***...]** ***Confidential Treatment Requested as of the Effective Date.  Notwithstanding anything to the contrary in this Agreement, Sequenom’s maximum liability to Quest Diagnostics under this Section 8.1.2 (including without limitation for attorneys’ fees and costs) shall not exceed (A) [...***...] with respect to any such acts of alleged infringement occurring prior to the first anniversary of First Commercial Sale, and (B) [...***...] in the aggregate.
2.Procedure.  If a party (an “Indemnitee”) intends to claim indemnification under this Section 8, it shall notify the other party (the “Indemnitor”) in writing within thirty (30) days of receipt of notice of any claim, demand, action or other proceeding for which the Indemnitee intends to claim such indemnification, and the Indemnitor shall have the right, but not the obligation, to participate in, and, to the extent the Indemnitor so desires, to assume the defense thereof with counsel mutually satisfactory to the parties; provided, however, that an Indemnitee shall have the right to retain its own counsel, with the fees and expenses to be paid by the Indemnitor, if representation of such Indemnitee by the counsel retained by the Indemnitor would be inappropriate due to actual or potential differing interests between such Indemnitee and any other party represented by such counsel in such proceeding.  The parties shall mutually agree upon monetary settlement terms with respect to any claim of indemnity pursuant to this Section 8. The obligations of this Section 8 shall not apply to amounts paid in settlement of any claim, demand, action or other proceeding if such settlement is effected without the consent of the Indemnitor, which consent shall not be unreasonably withheld, delayed or conditioned.  The Indemnitee shall reasonably cooperate with the Indemnitor and its legal representatives in the investigation of any claim, demand, action or other proceeding covered by this Section 8.
3.Insurance.  Quest Diagnostics shall maintain insurance, including product liability insurance, or the self-insured equivalent thereof, with respect to its activities under this Agreement regarding Services in such amounts as it customarily maintains with respect to similar activities for its other services, but not less than such amount as is reasonable and customary in the industry.  Quest Diagnostics shall maintain such insurance or the self-insured equivalent for so long as it continues its activities under this Agreement, and thereafter for so long as it customarily maintains insurance for itself covering similar activities for its other services.
9.TERM AND TERMINATION.
1.Term.  The term of this Agreement shall commence on the Effective Date and, unless earlier terminated pursuant to this Section 9, shall continue in effect until the last to expire of the Licensed Patent Rights.
2.Termination for Breach.  If a party has materially breached this Agreement, and such material breach shall continue for sixty (60) days after written notice of such breach was provided to 

* ***Confidential Treatment Requested

the breaching party by the nonbreaching party, the nonbreaching party shall have the right at its option to terminate this Agreement effective at the end of such thirty (30) day period.
3.Termination Upon Challenge.  If Quest Diagnostics or any of its Affiliates Challenges any of the Licensed Patent Rights, then unless, within thirty (30) days after written notice thereof by Sequenom, Quest Diagnostics withdraws or causes to be withdrawn all such Challenges, this Agreement automatically shall terminate upon the expiration of such thirty (30) day period.
4.Termination for Convenience.  Quest Diagnostics may terminate this Agreement, in its sole discretion, upon ninety (90) days prior written notice to Sequenom.
5.Effect of Expiration or Termination.
1.Expiration or termination of this Agreement shall be without prejudice to any rights which shall have accrued to the benefit of a party prior to such expiration or termination.  Without limiting the foregoing, Sections 2.3, 3.2, 3.4.4, 4.3, 6, 7, 8, 9.5 and 10 shall survive any expiration or termination of this Agreement.
2.Except as otherwise expressly set forth in this Agreement, promptly upon the expiration or earlier termination of this Agreement, each party shall return to the other party all tangible items regarding the Confidential Information of the other party and all copies thereof; provided, however, that each party shall have the right to retain one (1) copy for its legal files for the sole purpose of determining its obligations hereunder.
10.miscellaneous.
1.Governing Law.  This Agreement shall be governed by, interpreted and construed in accordance with the laws of the State of California, without regard to the conflicts of law principles thereof, and shall not be governed by the United Nations Convention on Contracts for the International Sale of Goods.
2.Waiver.  No waiver by a party hereto of any breach or default of any of the covenants or agreements herein set forth shall be deemed a waiver as to any subsequent and/or similar breach or default.
3.Assignment.  Neither this Agreement nor any right or obligation hereunder may be assigned or delegated, in whole or part, by either party without the prior express written consent of the other; provided, however, that either party may, without the written consent of the other, assign this Agreement and its rights and delegate its obligations hereunder in connection with the transfer or sale of all or substantially all of its business, or in the event of its merger, consolidation, change in control or similar transaction.  Any permitted assignee shall assume all obligations of its assignor under this Agreement.  Any purported assignment in violation of this Section 10.3 shall be void.
4.Independent Contractors.  The relationship of the parties hereto is that of independent contractors.  The parties hereto are not deemed to be agents, partners or joint venturers of the others for any purpose as a result of this Agreement or the transactions contemplated thereby.  Neither party shall have any right or authority to commit or legally bind the other in any way whatsoever including, without limitation, the making of any agreement, representation or warranty.
5.Further Actions.  Each party shall execute, acknowledge and deliver such further documents and instruments and to perform all such other acts as may be necessary or appropriate in order to carry out the purposes and intent of this Agreement.
6.Notices.  All requests and notices required or permitted to be given to the parties hereto shall be given in writing, shall expressly reference the section(s) of this Agreement to which they pertain, and shall be delivered to the other party, effective on receipt, at the appropriate address as set forth below or to such other addresses as may be designated in writing by the parties from time to time during the term of this Agreement.

* ***Confidential Treatment Requested

If to Sequenom:        Sequenom, Inc.
3595 John Hopkins Court
San Diego, California 92121
Attn:  Chief Executive Officer
With a copy to:        Sequenom, Inc.
3595 John Hopkins Court
San Diego, California 92121
Attention:  General Counsel
If to Quest Diagnostics:    Quest Diagnostics Incorporated
3 Giralda Farms
Madison, New Jersey 07940
Attn:  General Counsel
With a copy to:        Quest Diagnostics Incorporated
33608 Ortega Highway
San Juan Capistrano, California 92675
Attn:  Chief Intellectual Property Counsel
7.Force Majeure.  Nonperformance of a party (other than for the payment of money) shall be excused to the extent that performance is rendered impossible by strike, fire, earthquake, flood, governmental acts or orders or restrictions (including without limitation the actions of any regulatory or governmental body), or any other reason where failure to perform is beyond the reasonable control and not caused by the negligence, intentional conduct or misconduct of the nonperforming party; provided, however, that the nonperforming party shall use commercially reasonable efforts to resume performance as soon as reasonably practicable.
8.No Consequential Damages.  IN NO EVENT SHALL A PARTY BE LIABLE FOR SPECIAL, INCIDENTAL, CONSEQUENTIAL OR PUNITIVE DAMAGES ARISING OUT OF THIS AGREEMENT OR THE EXERCISE OF ITS RIGHTS HEREUNDER, INCLUDING WITHOUT LIMITATION LOST PROFITS ARISING FROM OR RELATING TO ANY BREACH OF THIS AGREEMENT, REGARDLESS OF ANY NOTICE OF SUCH DAMAGES.  NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS SECTION 10.8 SHALL LIMIT OR RESTRICT (A) THE LIABILITY OF A PARTY FOR A BREACH OF ITS OBLIGATIONS UNDER SECTION 6.1, OR (B) THE INDEMNIFICATION OBLIGATIONS OF A PARTY UNDER SECTION 8.  EACH PARTY’S LIABILITY FOR DAMAGES HEREUNDER SHALL IN NO EVENT EXCEED THE AMOUNT OF FEES PAID (OR PAYABLE) BY LICENSEE UNDER THIS AGREEMENT.
9.Sequenom In-Licenses.  Notwithstanding anything to the contrary in this Agreement, the grant of rights by Sequenom under this Agreement shall be subject to and limited in all respects by the terms of the applicable Sequenom In-License(s) pursuant to which Sequenom acquired Licensed Patent Rights, and all rights or sublicenses granted under this Agreement shall be limited to the extent that Sequenom may grant such rights and sublicenses under such Sequenom In-Licenses.  Sequenom shall provide a copy of each such Sequenom In-License to Quest Diagnostics, redacted as necessary, to permit compliance with this Section 10.9.  Sequenom shall have the right to amend, modify or terminate any Sequenom In-License as it determines in its sole discretion, and shall provide a copy of such amended or modified Sequenom In-License, if applicable, and update Schedule 1.30 accordingly.
10.Foreign Corrupt Practices Act.  In the performance of its obligations under this Agreement, Quest Diagnostics shall not take any action or otherwise act in any manner reasonably likely to render Sequenom liable for a violation of the FCPA, which prohibits the offering, giving or promising to offer or give, directly or indirectly, money or anything of value to any official of a government, political 

* ***Confidential Treatment Requested

party or instrumentality thereof in order to assist Quest Diagnostics in obtaining or retaining business (or otherwise breach any other applicable laws relating to bribery and corruption).
11.Complete Agreement.  This Agreement constitutes the entire agreement between the parties regarding the subject matter hereof, and all prior representations, understandings and agreements regarding the subject matter hereof, either written or oral, expressed or implied, are superseded and shall be and of no effect.
12.Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed to be an original and together shall be deemed to be one and the same agreement.  Execution of this Agreement may be accomplished via facsimile or via email exchange of signed PDF execution copies.
13.Headings.  The captions to the several sections hereof are not a part of this Agreement, but are included merely for convenience of reference only and shall not affect its meaning or interpretation.
14.Severability.  Any of the provisions of this Agreement which are determined to be invalid or unenforceable in any jurisdiction shall be ineffective to the extent of such invalidity or unenforceability in such jurisdiction, without rendering invalid or unenforceable the remaining provisions hereof and without affecting the validity or enforceability of any of the terms of this Agreement in any other jurisdiction.
IN WITNESS WHEREOF, the parties hereto have each caused this Agreement to be executed by their duly-authorized representatives as of the Effective Date.

SEQUENOM, INC.
By:    /s/ William J. Welch            
Name:    William J. Welch            
Title:    President & Chief Financial Officer    

QUEST DIAGNOSTICS INCORPORATED
By:    /s/ Wilson R. Conde            
Name:    Wilson R. Conde            
Title:    Vice President, Specialty Sales    
& Clinical Franchise Business Development
Quest Diagnostics Incorporated        

EXHIBIT A

LICENSED PATENT RIGHTS

[...***...]** ***Confidential Treatment Requested

* ***Confidential Treatment Requested

Schedule 1.13

Facilities

Quest Diagnostics Nichols Institute: 33608 Ortega Highway, San Juan Capistrano, California 92675

Quest Diagnostics Chantilly: 14225 Newbrook Dr, Chantilly, Virginia 20151

Quest Diagnostics Massachusetts LLC: One Biotech, 365 Plantation Street, Worcester, Massachusetts 01605

Schedule 1.30

Sequenom In-Licenses

The CUHK Agreement

The Isis Agreement

* ***Confidential Treatment RequestedMTSN 2014.6.29-EX10.2

Exhibit 10.2

Mattson Technology, Inc.
Amended and Restated 1994 Employee Stock Purchase Plan

1

AMENDED AND RESTATED
MATTSON TECHNOLOGY, INC.
1994 EMPLOYEE STOCK PURCHASE PLAN
(As Amended and Restated Effective May 20, 2014)

		
	1.
	PURPOSE.

The purpose of this Plan is to provide an opportunity for Employees of the Corporation and its Designated Subsidiaries, to purchase Common Stock of the Corporation and thereby to have an additional incentive to contribute to the prosperity of the Corporation.  It is the intention of the Corporation that the Plan have two components: a Code Section 423 Component (a “423 Component”) and a non-Code Section 423 Component (the “Non-423 Component”).  The Corporation’s intention is to have the 423 Component qualify as an “Employee Stock Purchase Plan” under Section 423 of the Code, and the Plan shall be construed in accordance with this intention.  In addition, this Plan authorizes the grant of an option to purchase shares of Common Stock under the Non-423 Component that does not qualify as an “Employee Stock Purchase Plan” under Section 423 of the Code; such an option will be granted pursuant to rules, procedures or sub-plans adopted by the Committee designed to achieve tax, securities laws or other objectives for Employees and the Corporation.  Except as otherwise provided herein, the Non-423 Component will operate and be administered in the same manner as the 423 Component.

		
	2.
	DEFINITIONS.

(a)    “Board” shall mean the Board of Directors of the Corporation.
(b)    “Code” shall mean the Internal Revenue Code of 1986, as amended.
(c)    “Committee” shall mean the committee appointed by the Board to administer the Plan in accordance with Section 12 of the Plan.
(d)    “Common Stock” shall mean the Common Stock of the Corporation, or any stock into which such Common Stock may be converted.
(e)    “Compensation” shall mean an Employee's wages or salary and other amounts payable to an Employee on account of personal services rendered by the Employee to the Corporation or a Designated Subsidiary and which are reportable as wages or other compensation on the Employee's Form W-2, plus pre-tax contributions of the Employee under a cash or deferred arrangement (401(k) plan) or cafeteria plan maintained by the Corporation or a Designated Subsidiary, but excluding, however, (1) non-cash fringe benefits, (2) special payments as determined by the Committee (e.g., moving expenses, unused vacation, severance pay), (3) income from the exercise of stock options or other stock purchases and (4) any other items of Compensation as determined by the Committee.
(f)    “Corporation” shall mean Mattson Technology, Inc., a Delaware corporation, or any successor corporation thereto.
(g)    “Designated Subsidiary” shall mean a Subsidiary which has been designated by the Board as eligible to participate in the Plan.  For purposes of the 423 Component, only the Corporation and its Subsidiaries may be Designated Subsidiaries; provided, however, that at any given time, a Subsidiary that is a Designated Subsidiary under the 423 Component will not be a Designated Subsidiary under the Non-423 Component.
(h)    “Employee” shall mean an individual employed (within the meaning of Code section 3401(c) and the regulations thereunder) by the Corporation or a Designated Subsidiary.
(i)    “Entry Date” shall mean the first day of each Option Period.  The first Entry Date shall be the date the Company's initial public offering registered with the Securities and Exchange Commission is declared effective, unless otherwise determined by the Committee.

2

(j)    “Exercise Date” shall mean the last business day of each Exercise Period.
(k)    “Exercise Period” shall mean a six-month or other period as determined by the Committee.  The first Exercise Period during an Option Period shall commence on the first day of such Option Period.  Subsequent Exercise Periods, if any, shall run consecutively after the termination of the preceding Exercise Period.  The last Exercise Period in an Option Period shall terminate on the last day of such Option Period.
(l)    “Fair Market Value” shall mean the value of one (1) share of Common Stock on the relevant date, determined as follows:
(i)    If the shares are traded on an exchange or national market system, including without limitation the New York Stock Exchange, NASDAQ Global Select Market, the NASDAQ Global Market or the NASDAQ Capital Market of The NASDAQ Stock Market, the reported “closing price” on the prior trading day;
(ii)    If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, the mean between the bid and the ask prices on said System at the close of business on the prior trading day, as reported in The Wall Street Journal or such other source as the Committee deems reliable; and
(iii)    If neither (1) nor (2) applies, the fair market value as determined by the Committee in good faith.  Such determination shall be conclusive and binding on all persons.
(m)    “Offering” shall mean an offer under the Plan of an option that may be exercised during an Option Period as further described in Section 5.
(n)    “Option Period” shall mean a period of up to twenty-seven (27) months as determined by the Committee.
(o)    “Participant” shall mean a participant in the Plan as described in Section 4 of the Plan.
(p)    “Plan” shall mean this employee stock purchase plan.
(q)    “Subsidiary” shall mean any corporation (other than the Corporation) in an unbroken chain of corporations beginning with the Corporation, as described in Code section 424(f).

		
	3.
	ELIGIBILITY.

Any Employee regularly employed on a full‐time basis by the Corporation or by any Designated Subsidiary on an Entry Date shall be eligible to participate in the Plan with respect to the Option Period commencing on such Entry Date, provided that the Committee may establish administrative rules on a uniform and nondiscriminatory basis requiring that employment commence some minimum period (e.g., one pay period) prior to an Entry Date to be eligible to participate with respect to that Entry Date.  An Employee shall be considered employed on a full‐time basis unless his or her customary employment is 20 hours or less per week or for not more than five months per calendar year NTD: Also permissible to exclude certain other employees (for example, employees who have been employed less than 2 years or highly compensated employees (within the meaning of Section 414(q) of the Code)) or any lesser number of hours per week and/or number of months in any calendar year established by the Committee (if required under applicable local law) for purposes of any separate Offering or for Employees participating in the Non-423 Component.  No Employee may participate in the Plan if immediately after an option is granted the Employee owns or is considered to own (within the meaning of section 424(d) of the Code), shares of stock, including stock which the Employee may purchase under outstanding options granted by the Corporation, possessing five percent (5%) or more of the total combined voting power or value of all classes of stock of the Corporation or of any of its Subsidiaries.  All Employees who participate in an Offering shall have the same rights and privileges under the Plan except for differences in order to comply with the laws of a foreign jurisdiction and which are consistent with Code section 423(b)(5) (to the extent the Offering was granted under the 423 Component).  Employees who are citizens or residents of a non-U.S. jurisdiction (without regard to whether they also are citizens or residents of the United States or resident aliens (within the meaning of Section 7701(b)(1)(A) of the Code)) may be excluded from participation in the Plan or an Offering if the participation of such Employees is prohibited under the laws of the applicable jurisdiction or if 

3

complying with the laws of the applicable jurisdiction would cause the Plan or an Offering to violate Section 423 of the Code. In the case of the Non-423 Component, Employees may be excluded from participation in the Plan or an Offering if the Committee has determined that participation of such Employees is not advisable or practicable.

		
	4.
	PARTICIPATION.

1.    An Employee who is eligible to participate in the Plan in accordance with Section 3 may become a Participant by filing, on a date prescribed by the Committee prior to an applicable Entry Date, a completed payroll deduction authorization and Plan enrollment form provided by the Corporation.  An eligible Employee may authorize payroll deductions at the rate of any whole percentage of the Employee's Compensation, not to exceed fifteen percent (15%) of the Employee's Compensation, or such lesser percentage as specified by the Committee as applied to an Entry Date or Option Period.  All payroll deductions may be held by the Corporation and commingled with its other corporate funds except as otherwise required by applicable law.  No interest shall be paid or credited to the Participant with respect to such payroll deductions except where required by local law as determined by the Committee.  A separate bookkeeping account for each Participant shall be maintained by the Corporation under the Plan and the amount of each Participant's payroll deductions shall be credited to such account.  A Participant may not make any additional payments into such account.  Notwithstanding any provisions to the contrary in the Plan, the Committee may allow Employees to participate in the Plan via cash contributions instead of payroll deductions if (i) payroll deductions are not permitted under applicable local law, (ii) the Committee determines that cash contributions are permissible under Section 423 of the Code or (iii) for Participants participating in the Non-423 Component.
2.    Under procedures established by the Committee, a Participant may suspend or discontinue participation in the Plan or may reduce the rate of his or her payroll deductions at any time during an Option Period by completing and filing a new payroll deduction authorization and Plan enrollment form with the Corporation, provided that the Committee may, in its discretion, impose restrictions on a Participant's ability to change the rate of payroll deductions.  A Participant may increase his or her rate of payroll deductions only effective on an Entry Date by filing a new payroll deduction authorization and Plan enrollment form.  If a new payroll deduction authorization and Plan enrollment form is not filed with the Corporation, the rate of payroll deductions shall continue at the originally elected rate throughout the Option Period unless the Committee determines to change the permissible rate.
If a Participant suspends participation during an Exercise Period, his or her accumulated payroll deductions will remain in the Plan for purchase of shares as specified in Section 6 on the following Exercise Date, but the Participant will not again participate until he or she completes a new payroll deduction authorization and Plan enrollment form.  The Committee may establish rules limiting the frequency with which Participants may suspend and resume payroll deductions under the Plan and may impose a waiting period on Participants wishing to resume suspended payroll deductions.  If a Participant discontinues participation in the Plan, the amount credited to the Participant's individual account shall be paid to the Participant without interest (except where required by local law).  In the event any Participant terminates employment with the Corporation or any Subsidiary for any reason (including death) prior to the expiration of an Exercise Period, the Participant's participation in the Plan shall terminate and all amounts credited to the Participant's account shall be paid to the Participant or the Participant's estate without interest (except where required by local law).  Whether a termination of employment has occurred shall be determined by the Committee.  The Committee may also establish rules regarding when leaves of absence or change of employment status (e.g., from full-time to part-time) will be considered to be a termination of employment, and the Committee may establish termination of employment procedures for this Plan which are independent of similar rules established under other benefit plans of the Corporation and its Subsidiaries.
In the event of a Participant’s death, any accumulated payroll deductions will be paid, without interest, to the estate of the Participant.

		
	5.
	OFFERING.

4

1.    The maximum number of shares of Common Stock which may be issued pursuant to the Plan shall be [6,175,000] shares.  The Committee may designate any amount of available shares for offering for any Option Period determined pursuant to Section 5.2.
2.    Each Option Period, Entry Date and Exercise Period shall be determined by the Committee.  The Committee shall have the power to change the duration of future Option Periods or future Exercise Periods, and to determine whether or not to have overlapping Option Periods, with respect to any prospective offering, without stockholder or Board approval.    For purposes of the Plan, the Committee may designate separate Offerings under the Plan (the terms of which need not be identical) in which Employees of the Corporation or any Designated Subsidiary will participate, even if the dates of the applicable Option Periods of each such Offering are identical and the provisions of the Plan will separately apply to each Offering.  To the extent permitted by U.S. Treasury Regulation Section 1.423‐2(a)(1), the terms of each Offering need not be identical provided that the terms of the Plan and an Offering together satisfy U.S. Treasury Regulation Section 1.423‐2(a)(2) and (a)(3).
3.    With respect to each Option Period, each eligible Employee who has elected to participate as provided in Section 4.1 shall be granted an option to purchase that number of shares of Common Stock which may be purchased with the payroll deductions accumulated on behalf of such Employee (assuming payroll deductions at a rate of 15% of Compensation) during each Exercise Period within such Option Period at the purchase price specified in Section 5.4 below; provided, however, (1) in no event shall the Employee be granted an option which permits the Employee to accrue rights to purchase shares under the Plan (and all other employee stock purchase plans, as defined in Code section 423, of the Corporation and its subsidiaries) at a rate which exceeds $25,000 of the Fair Market Value of such stock (determined at the time the option is granted) for each calendar year in which such option is outstanding at any time, and (2) the maximum shares subject to any option during each Option Period shall in no event exceed 20,000.  If an Employee's payroll deductions during any Exercise Period exceeds the purchase price for the maximum number of shares permitted to be purchased under this Section 5.3 (or Section 5.5), the excess shall be refunded to the Participant without interest (except where otherwise required by local law).
4.    The Committee may set the option price in its sole discretion, provided that the price shall not be less than the lower of: (i) eighty‐five percent (85%) of the Fair Market Value of the Common Stock on the Entry Date on which an option is granted, or (ii) eighty‐five percent (85%) of the Fair Market Value on the Exercise Date on which the Common Stock is purchased.
5.    If the Committee determines that, on a given Exercise Date, the number of shares of Common Stock with respect to which options are to be exercised may exceed (i) the number of shares of Common Stock that were available for sale under the Plan on the Entry Date of the applicable Option Period, or (ii) the number of shares of Common Stock available for sale under the Plan on such Exercise Date, the Committee may in its sole discretion (x) provide that the Company will make a pro rata allocation of the shares of Common Stock available for purchase on such Entry Date or Exercise Date, as applicable, in as uniform a manner as will be practicable and as it will determine in its sole discretion to be equitable among all Participants exercising options to purchase Common Stock on such Exercise Date, and continue all Option Periods then in effect or (y) provide that the Company will make a pro rata allocation of the shares available for purchase on such Entry Date or Exercise Date, as applicable, in as uniform a manner as will be practicable and as it will determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Exercise Date, and terminate any or all Option Periods then in effect.  The Company may make a pro rata allocation of the shares available on the Entry Date of any applicable Option Period pursuant to the preceding sentence, notwithstanding any authorization of additional shares for issuance under the Plan by the Company’s stockholders subsequent to such Entry Date.
6.    Subject to Section 5.4, the Committee in its sole discretion, may allow options to be priced at the lower of (i) a percentage of the Fair Market Value of the Common Stock on the Entry Date on which an option is granted, and (ii) a percentage of the Fair Market Value on the Exercise Date on which the Common Stock is purchased. In the event the Committee elects to price options on that basis, and in the event the Fair Market Value of the Corporation's Common Stock is lower on the first day of an Exercise Period within an Option Period (subsequent “Reassessment Date”) than it was on Entry Date for such Option Period, all Employees participating in the Plan on the Reassessment Date shall be deemed to have relinquished the unexercised portion of the option granted on the Entry Date and to have enrolled in and received a new option 

5

commencing on such Reassessment Date, unless the Committee has determined not to permit overlapping Option Periods or to restrict such transfers to lower price Option Periods.

6.PURCHASE OF STOCK.
Upon the expiration of each Exercise Period, a Participant's option shall be exercised automatically for the purchase of that number of full shares of Common Stock which the accumulated payroll deductions credited to the Participant's account at that time shall purchase at the applicable price determined in accordance with Section 5.4.

		
	7.
	PAYMENT AND DELIVERY.

Upon the exercise of an option, the Corporation shall deliver to the Participant the Common Stock purchased and the balance of any amount of payroll deductions credited to the Participant's account not used for the purchase.  The Committee may permit or require that shares be deposited directly with a broker designated by the Participant (or a broker selected by the Committee), and the Committee may utilize electronic or automated methods of share transfer.  To the extent the unused cash balance represents a fractional share, the unused cash balance credited to the Participant's account shall be carried over to the next Exercise Period, if the Participant is also a Participant in the Plan at that time or refunded to the Participant, as determined by the Committee.  The Corporation shall retain the amount of payroll deductions used to purchase Common Stock as full payment for the Common Stock and the Common Stock shall then be fully paid and non‐assessable.  No Participant shall have any voting, dividend, or other stockholder rights with respect to shares subject to any option granted under the Plan until the option has been exercised and shares issued.

		
	8.
	RECAPITALIZATION.

If after the grant of an option, but prior to the purchase of Common Stock under the option, there is any increase or decrease in the number of outstanding shares of Common Stock because of a stock split, stock dividend, combination or recapitalization of shares subject to options, the number of shares to be purchased pursuant to an option, the share limit of Section 5.3 and the maximum number of shares specified in Section 5.1 per Option Period shall be proportionately increased or decreased, the terms relating to the purchase price with respect to the option shall be appropriately adjusted by the Committee, and the Committee shall take any further actions which, in the exercise of its discretion, may be necessary or appropriate under the circumstances.
The Committee, if it so determines in the exercise of its sole discretion, also may adjust the number of shares specified in Section 5.1, as well as the price per share of Common Stock covered by each outstanding option and the maximum number of shares subject to any individual option, in the event the Corporation effects one or more reorganizations, recapitalizations, spin-offs, split-ups, rights offerings or reductions of shares of its outstanding Common Stock.

The Committee's determinations under this Section 8 shall be conclusive and binding on all parties.

		
	9.
	MERGER, LIQUIDATION, OTHER CORPORATION TRANSACTIONS.

In the event of the proposed liquidation or dissolution of the Corporation, the Option Period will terminate immediately prior to the consummation of such proposed transaction, unless otherwise provided by the Committee in its sole discretion, and all outstanding options shall automatically terminate and the amounts of all payroll deductions will be refunded without interest to the Participants.
In the event of a proposed sale of all or substantially all of the assets of the Corporation, or the merger or consolidation of the Corporation with or into another corporation, then in the sole discretion of the Committee, (1) each option shall be assumed or an equivalent option shall be substituted by the successor corporation or parent or subsidiary of 

6

such successor corporation, (2) a date established by the Committee on or before the date of consummation of such merger, consolidation or sale shall be treated as an Exercise Date, and all outstanding options shall be deemed exercisable on such date or (3) all outstanding options shall terminate and the accumulated payroll deductions shall be returned to the Participants.

		
	10.
	TRANSFERABILITY.

Options granted to Participants may not be voluntarily or involuntarily assigned, transferred, pledged, or otherwise disposed of in any way (other than by will or the laws of descent and distribution) and may be exercisable, during Participant’s lifetime, only by Participant, and any attempted assignment, transfer, pledge, or other disposition shall be null and void and without effect.  If a Participant in any manner attempts to transfer, assign or otherwise encumber his or her rights or interest under the Plan, other than as permitted by the Code or the terms of the Plan, such act shall be treated as an election by the participant to discontinue participation in the Plan pursuant to Section 4.2.

		
	11.
	AMENDMENT OR TERMINATION OF THE PLAN.

1.    The Plan shall continue until May 19, 2024, unless previously terminated in accordance with Section 11.2.
2.    The Board may, in its sole discretion, insofar as permitted by law, terminate or suspend the Plan, or revise or amend it in any respect whatsoever, except that, without approval of the stockholders, no such revision or amendment shall:
(a)    materially increase the number of shares subject to the Plan other than an adjustment under Section 8 of the Plan;
(b)    materially modify the requirements as to eligibility for participation in the Plan;
(c)    materially increase the benefits accruing to Participants;
(d)    reduce the purchase price specified in Section 5.4, except as specified in Section 8;
(e)    extend the term of the Plan beyond the date specified in Section 11.1; or
(f)    amend this Section 11.2 to defeat its purpose.

		
	12.
	ADMINISTRATION.

The Plan shall be administered by a Committee which shall consist of at least two members appointed by the Board.  The Committee will have full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to designate separate Offerings under the Plan, to designate Subsidiaries as participating in the 423 Component or Non-423 Component, to determine eligibility, to adjudicate all disputed claims filed under the Plan and to establish such procedures that it deems necessary for the administration of the Plan (including, without limitation, to adopt such procedures and sub-plans as are necessary or appropriate to permit the participation in the Plan by Employees who are foreign nationals or employed outside the U.S., the terms of which sub-plans may take precedence over other provisions of this Plan, with the exception of Section 11.2 hereof, but unless otherwise superseded by the terms of such sub-plan, the provisions of this Plan shall govern the operation of such sub-plan).  Unless otherwise determined by the Committee, the Employees eligible to participate in each sub-plan will participate in a separate Offering or in the Non-423 Component.  Without limiting the generality of the foregoing, the Committee is specifically authorized to adopt rules and procedures regarding eligibility to participate, the definition of Compensation, handling of contributions, making of contributions to the Plan (including, without limitation, in forms other than payroll deductions), establishment of bank or trust accounts to hold contributions, payment of interest, conversion of local currency, obligations to pay payroll tax, determination of beneficiary designation requirements, withholding procedures and handling of stock certificates that vary with applicable local requirements.  The Committee also is authorized to determine that, to the extent permitted by U.S. Treasury Regulation Section 1.423‐2(f), the terms of an Offering to citizens or residents of a non-U.S. jurisdiction will be less favorable than the terms of options granted under the Plan or the same Offering to employees resident solely in the U.S.  Every finding, decision and determination made by the 

7

Committee will, to the full extent permitted by law, be final and binding upon all parties.  Any decision reduced to writing and signed by a majority of the members of the Committee shall be fully effective as if it had been made at a meeting of the Committee duly held.  The Corporation shall pay all expenses incurred in the administration of the Plan.  No Committee member shall be liable for any action or determination made in good faith with respect to the Plan or any option granted thereunder.

		
	13.
	COMMITTEE RULES FOR FOREIGN JURISDICTIONS.

The Committee may adopt rules or procedures (including the creation of separate Offerings) relating to the operation and administration of the Plan in non-United States jurisdictions to accommodate the specific requirements of local laws and procedures.  Without limiting the generality of the foregoing, the Committee is specifically authorized to adopt rules and procedures regarding handling of payroll deductions, conversion of local currency, withholding procedures and handling of stock certificates which vary with local requirements.

		
	14.
	SECURITIES LAWS REQUIREMENTS.

The Corporation shall not be under any obligation to issue Common Stock upon the exercise of any option unless and until the Corporation has determined that: (i) it and the Participant have taken all actions required to register the Common Stock under the Securities Act of 1933, or to perfect an exemption from the registration requirements thereof; (ii) any applicable listing requirement of any stock exchange on which the Common Stock is listed has been satisfied; and (iii) all other applicable provisions of state and federal law have been satisfied.

		
	15.
	GOVERNMENTAL REGULATIONS.

This Plan and the Corporation's obligation to sell and deliver shares of its stock under the Plan shall be subject to the approval of any governmental authority required in connection with the Plan or the authorization, issuance, sale, or delivery of stock hereunder.

		
	16.
	NO ENLARGEMENT OF EMPLOYEE RIGHTS.

Nothing contained in this Plan shall be deemed to give any Employee the right to be retained in the employ of the Corporation or any Designated Subsidiary or to interfere with the right of the Corporation or Designated Subsidiary to discharge any Employee at any time.

		
	17.
	GOVERNING LAW.

This Plan shall be governed by California law, but the 423 Component shall be interpreted to be consistent with the requirements of any employee stock purchase plan under Code section 423.

		
	18.
	EFFECTIVE DATE.

This Plan shall be effective August 31, 1994, subject to approval of the stockholders of the Corporation within 12 months of its adoption by the Board of Directors.

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